(DWAW) DORSEY WRIGHT FSM ALL CAP WORLD ETF

DWAW

Overview

The AdvisorShares Dorsey Wright FSM All Cap World ETF (Ticker: DWAW) is an actively managed, global rotation strategy that invests in domestic and foreign equity asset classes across any market cap, including emerging markets, within the tax-efficient structure of an ETF. Using Nasdaq Dorsey Wright’s (Dorsey Wright) proprietary research and Fund Score Method (FSM) framework, DWAW tactically allocates its portfolio to those funds in the FSM Core Solution All Cap World Strategy (FSM All Cap World) with the highest FSM rankings. DWAW will continue to hold onto those portfolio positions so long as they maintain the strongest FSM rankings at the time of DWAW’s quarterly rebalancing. FSM rankings are derived using three main areas of evaluation: trend analysis, market relative strength, and peer relative strength.

By using Dorsey Wright’s FSM ranking and modeling in its investment strategy, DWAW provides an objective, rules-based approach to “go-anywhere” equity investing. DWAW can tactically allocate its portfolio to domestic, international, or emerging markets; small, mid or large cap asset classes; growth or value exposure; factor or market based investments; or even cash. DWAW also utilizes defensive investing features, allowing it to gradually add cash based on overall market momentum indicators. When cash is defensively added to the portfolio, DWAW will reassess the strategy’s momentum indicators so it may move back into equity exposure once broad equity strength is displayed.

Symbol Exchange Inception Date CUSIP Indicative Value
DWAW Nasdaq 12/26/2019 00768Y479 DWAW.IV
<strong>Why Invest in DWAW?</strong>
  • Alpha-Seeking Complement to Broad Based Exposure – Broad based indexes, by their nature, have the good and the bad, the strong and the weak. DWAW seeks to add alpha using Dorsey Wright’s historically successful trend following process and investment modeling that looks to identify the strongest asset classes from the weaker performers.
  • Active Management Advantage – Many ETFs passively invest owning the majority of the stocks represented in their benchmark index, including those with less than attractive investing attributes. DWAW’s investment process systematically screens a broad variety of asset classes in the FSM All Cap World investment universe for inclusion or removal from its highly tactical, active portfolio.
  • Asset Class Rotation – Owning or even avoiding certain asset classes – domestic or foreign, small or large cap, growth or value, factor or market based – is an important determinant of portfolio success. Asset classes rotate in and out of season. Sometimes those trends last for years, other times for months. By investing in the highest FSM ranked funds, DWAW seeks to capture the growth of those asset classes demonstrating the greatest relative strength while avoiding the weakest.
  • Systematic Defense – Because we believe avoiding severe losses helps to preserve capital and can contribute to good performance over time, DWAW uses a rules-based approach to tactically add cash or short term fixed income exposure to the portfolio when momentum indicators are triggered. The temporary defensive position is to try to shield the portfolio from certain catastrophic market types.
<strong>Where Can DWAW Fit in a Traditional Portfolio?</strong>

DWAW can serve as an alpha-seeking complement to a broad-based market cap weighted position, such as a fund that tracks a global index, as well as a stand-alone investment solution for world equity exposure with tactical asset allocation.

<strong>Key Attributes</strong>
  1. Unconstrained Equity Portfolio – DWAW is uniquely positioned from an investment opportunity perspective because it is not limited by style (value or growth), investment capitalization (small, mid or large), or even classification of international market (domestic or foreign, emerging or developed).
  2. Targeted Asset Class Exposure – By tactically allocating to the top ranked asset classes based on Dorsey Wright’s FSM ranking and modeling, DWAW seeks to identify and benefit from major leadership themes within the market. DWAW will regularly rebalance on an equal weight basis into the most favorably identified funds within the FSM All Cap World investment universe.
  3. Relative Strength Analysis – DWAW uses a relative strength strategy, via FSM rankings, which compares price performance within a universe of stocks and is designed to remove human emotion from the decision process. This is a disciplined, repeatable process to systematically identify and select which sectors and stocks to own, as well as, which to avoid or sell.
  4. Tactical Defensive Investing – When the market demonstrates overall weakness, DWAW will gradually allocate to cash or short term fixed income. This cash allocation will incrementally increase or decrease based on whether the momentum indicator is showing overall market strength or weakness versus cash.
<strong>About the Portfolio Manager</strong>

Nasdaq Dorsey Wright, Model Manager Nasdaq Dorsey Wright is a registered investment advisory firm based in Richmond, Virginia. Since 1987, Dorsey Wright has offered comprehensive investment research and analysis through their Global Technical Research Platform. Dorsey Wright’s expertise is technical analysis, utilizing Point & Figure Charting, Relative Strength Analysis, and numerous other technical and systematic tools to analyze market data and deliver actionable insights.

Robert M. Parker, CFA, Portfolio Manager Rob Parker is the director of capital markets for AdvisorShares Investments, where he oversees trading, portfolio management and fund operations activity for the firm. In managing DWUS, he leverages the research of Nasdaq Dorsey Wright. Rob holds the Chartered Financial Analyst (CFA) designation and is a member of the CFA Society of Washington, DC.

Fund

Price History

As of 7/10/2020

NAV $29.81 Closing Price $29.83
Change $0.18 Close Change $3.51
Shares Outstanding 2,625,000 Volume 3,483
4PM Bid/Offer Midpoint $29.83 Premium Discount $0.02
Assets Under Management $78,246,413.68    

NAV Historical Data

Shares are bought and sold at market price (closing price) not NAV and are not individually redeemed from the Fund. Market price returns are based on the midpoint of the bid/ask spread at 4:00 pm Eastern Time (when NAV is normally determined), and do not represent the return you would receive if you traded at other times.

FUND

Performance

As of 6/30/2020

NAV Market Price Return MSCI All Cap World Index (ACWI)
1 Month 4.30 4.31 4.52
3 Months 27.97 27.94 16.12
YTD 12.34 12.24 -11.00
Since Inception (12/26/2019, Annualized) 11.76 11.74 0.00

As of 12/31/2019

  NAV Market Price Return MSCI All Cap World Index (ACWI)
1 Month  –
YTD
Since Inception (12/26/2019, Annualized)

Performance data quoted represents past performance and is no guarantee of future results. All Fund data and performance data quoted is believed to be accurate, and unless otherwise stated, is sourced from the Fund administrator, the Advisor’s or Sub-Advisor’s proprietary data, and Morningstar. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Returns less than one year are not annualized.

Fund

Holdings

As of 7/9/2020

Date Account Symbol Stock Ticker Security Number Security Description Shares/Par (Full) Price (Base) Traded Market Value (Base) Portfolio Weight % Asset Group
07/10/2020 DWAW QQQ 4.61E+107 INVESCO QQQ TRUST SERIES 1 151,600.00 263.97 40,017,852.00 51.15% MF
JKE 464287119 ISHARES MORNINGSTAR LARGE-CA 153,740.00 248.16 38,152,118.40 48.76% MF
X9USDBLYT BLACKROCK TREASURY TRUST INSTL 62 58,538.82 1 58,538.82 0.07% MM
CASH 14,304.19 100 14,304.19 0.02% CA
Holdings and allocations are subject to risks and to change. A holding identified with an “MM” at the end of its name indicates it is a Money Market fund.

FUND

Characteristics

As of 5/31/2020

DWAW Sector Allocation

DWAW Market Cap

DWAW Growth vs Value

DWAW Regional Allocation

FUND

Fees & Expenses

Management Fee 0.75%
Other Expenses 0.24%
Acquired Fund Fees and Expenses 0.15%
Expense Ratio 1.14%

 

 

Last Ten

Fund Distributions

Ex-Date Record Date Pay Date Cash Div ST Cap Gain LT Cap Gain Return of Capital Total Distribution (per share) DWAW
12/23/2020 12/28/2020 12/31/2020 - - - - - FORMULA
  • Before investing you should carefully consider the Fund’s investment objectives, risks, charges and expenses. This and other information is in the prospectus, a copy of which may be obtained by visiting the Fund’s website at www.AdvisorShares.com. Please read the prospectus carefully before you invest. Foreside Fund Services, LLC, Distributor.
  •    
  • Investing Involves risk including possible loss of principal. The Advisor’s judgment about the markets, the economy, or companies may not anticipate actual market movements, economic conditions or company performance, and these factors may affect the return on your investment. Foreign investing involves special risks, such as risk of loss from currency fluctuation or political or economic uncertainty. Investments in emerging or offshore markets are generally less liquid and less efficient than investments in developed markets and are subject to additional risks, such as risks of adverse governmental regulation and intervention or political developments. The market value of debt securities held by the Fund typically changes as interest rates change, as demand for the instruments changes, and as actual or perceived creditworthiness of an issuer changes.