(DWEQ) DORSEY WRIGHT ALPHA EQUAL WEIGHT ETF

DWEQ

Overview

The AdvisorShares Dorsey Wright Alpha Equal Weight ETF (Ticker: DWEQ) is an actively managed ETF that takes a modern sector rotation approach to domestic large cap equity equal weight investing. Using Nasdaq Dorsey Wright’s (Dorsey Wright) disciplined and quantitative proprietary relative strength research, DWEQ implements a two-factor approach to invest in top-ranked U.S. equity securities within the tax-efficient structure of an ETF. First, industry sectors are ranked based on relative strength. Next, from the three top rated sectors, individual equity securities are selected based on their relative strength ratings with those displaying both a buy or bullish signal and rising price momentum (both the “B” and “X” columns in point and figure charting) given higher ratings. DWEQ systematically reviews and rotates into the highest ranked sectors by reallocating to the highest ranked equity securities in those sectors. DWEQ 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, DWEQ will reassess the strategy’s momentum indicators so as to move back into equity exposure once broad equity strength is displayed.

DWEQ’s investment strategy follows Dorsey Wright’s core philosophy of relative strength investing – buying securities that have appreciated in price more than other securities within the investment universe and holding those securities until they exhibit sell signals. The systematic nature of Dorsey Wright’s process removes emotion from the day-to-day decision making. Stock selection is strictly based on the highest ranked securities within the highest ranked sectors as measured by the relative strength investment process.

 

Symbol Exchange Inception Date CUSIP Indicative Value
DWEQ Nasdaq 12/26/2019 00768Y461 DWEQ.IV
<strong>Why Invest in DWEQ?</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. DWEQ seeks to add alpha using Dorsey Wright’s historically successful trend following process that looks to identify the strongest sectors and companies, while eliminating the weakest performers.
  • Active Management Advantage – Many large-cap ETFs passively invest owning the majority of the stocks represented in their benchmark index, including those with less than attractive investing attributes. DWEQ’s investment process systematically screens 1,000 of the large U.S. equity securities for inclusion or removal from its highly selective, active portfolio.
  • Sector Rotation – Numerous academic studies have shown that successful sector rotation is one of the important determinants of portfolio success. Sectors rotate in and out of season. Sometimes those trends last for years, other times for months. By investing in the highest relative strength rated sectors, DWEQ seeks to capture the growth of the positive outliers on the bell curve of sector returns while avoiding the negative outliers.
  • Systematic Defense – Because we believe avoiding severe losses helps to preserve capital and can contribute to good performance over time, DWEQ 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 DWEQ Fit in a Traditional Portfolio?</strong>

DWEQ can serve as an alpha-seeking complement to a broad-based market cap weighted position, such as a fund that tracks the S&P 500 Index, as well as, a stand-alone investment solution for domestic large cap equity exposure.

<strong>Key Attributes</strong>
  1. Concentrated Portfolio– DWEQ typically has a portfolio of 40 to 50 large cap domestic equities.
  2. Targeted Sector Exposure – By tactically allocating to the top-ranked sectors based on relative strength analysis, DWEQ will adjust and rotate into the sectors with the highest relative strength, and equally allocate across those sectors.
  3. Highest Ranked Stocks– Stocks selected for each sector must demonstrate both a buy or bullish signal and rising price momentum (both the “B” and “X” columns in point and figure charting). DWEQ will systematically rebalance on an equal weight basis into the most favorably identified individual securities within the top ranked sectors.
  4. Relative Strength Analysis– DWEQ uses a relative strength strategy, 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.
  5. Tactical Defensive Investing– When the market demonstrates overall weakness, DWEQ 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 $21.23 Closing Price $21.23
Change $-0.11 Close Change $2.14
Shares Outstanding 1,925,000 Volume 4,833
4PM Bid/Offer Midpoint $21.24 Premium Discount $0.00
Assets Under Management $40,872,106.49    

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 S&P 500 Index
1 Month 4.13 4.13 1.99
3 Months 10.57 10.25 20.54
YTD -18.28 -18.37 -3.08
Since Inception (12/26/2019, Annualized) -18.57 -18.53 0.00

As of 12/31/2019

NAV Market Price Return S&P 500 Index
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 DWEQ TDOC 87918A105 TELADOC HEALTH INC 4,963.00 228.98 1,136,427.74 2.78% S
AMZN 23135106 AMAZON.COM INC 347 3,200.00 1,110,400.00 2.72% S
NVDA 67066G104 NVIDIA CORP 2,601.00 419.17 1,090,261.17 2.67% S
CVNA 146869102 CARVANA CO 7,822.00 137.46 1,075,212.12 2.63% S
HELE G4388N106 HELEN OF TROY LTD 5,290.00 202.56 1,071,542.40 2.62% FS
TTD 88339J105 TRADE DESK INC/THE -CLASS A 2,301.00 461.98 1,063,015.98 2.60% S
COUP 22266L106 COUPA SOFTWARE INC 3,440.00 308.28 1,060,483.20 2.59% S
MPWR 609839105 MONOLITHIC POWER SYSTEMS INC 4,231.00 247.91 1,048,907.21 2.57% S
CMG 169656105 CHIPOTLE MEXICAN GRILL INC 935 1,118.04 1,045,367.40 2.56% S
VEEV 922475108 VEEVA SYSTEMS INC-CLASS A 4,113.00 254.16 1,045,360.08 2.56% S
AAPL 37833100 APPLE INC 2,719.00 383.68 1,043,225.92 2.55% S
DHR 235851102 DANAHER CORP 5,666.00 183.67 1,040,674.22 2.55% S
HZNP G46188101 HORIZON THERAPEUTICS PLC 18,107.00 57.23 1,036,263.61 2.54% FS
FIVN 338307101 FIVE9 INC 8,639.00 119.06 1,028,559.34 2.52% S
EPAM 29414B104 EPAM SYSTEMS INC 3,930.00 261.14 1,026,280.20 2.51% S
CDNS 127387108 CADENCE DESIGN SYS INC 10,160.00 100.97 1,025,855.20 2.51% S
NOW 81762P102 SERVICENOW INC 2,420.00 422.91 1,023,442.20 2.50% S
TYL 902252105 TYLER TECHNOLOGIES INC 2,842.00 359.73 1,022,352.66 2.50% S
ANSS 03662Q105 ANSYS INC 3,375.00 301.65 1,018,068.75 2.49% S
WST 955306105 WEST PHARMACEUTICAL SERVICES 4,383.00 232.23 1,017,864.09 2.49% S
LHCG 50187A107 LHC GROUP INC 5,603.00 181.32 1,015,935.96 2.49% S
CHE 16359R103 CHEMED CORP 2,145.00 473.47 1,015,593.15 2.48% S
MTD 592688105 METTLER-TOLEDO INTERNATIONAL 1,235.00 819.2 1,011,712.00 2.48% S
POOL 73278L105 POOL CORP 3,619.00 278.49 1,007,855.31 2.47% S
W 94419L101 WAYFAIR INC- CLASS A 4,503.00 223.76 1,007,591.28 2.47% S
AVGO 11135F101 BROADCOM INC 3,150.00 319.44 1,006,236.00 2.46% S
IDXX 45168D104 IDEXX LABORATORIES INC 2,953.00 338.25 998,852.25 2.44% S
HD 437076102 HOME DEPOT INC 3,993.00 250.11 998,689.23 2.44% S
AMED 23436108 AMEDISYS INC 4,795.00 207.77 996,257.15 2.44% S
NKE 654106103 NIKE INC -CL B 10,146.00 97.99 994,206.54 2.43% S
RH 74967X103 RH 3,775.00 261.23 986,143.25 2.41% S
ERI 28470R102 ELDORADO RESORTS INC 24,550.00 40.15 985,682.50 2.41% S
DG 256677105 DOLLAR GENERAL CORP 5,193.00 188.24 977,530.32 2.39% S
MA 57636Q104 MASTERCARD INC - A 3,287.00 295.68 971,900.16 2.38% S
EW 2.82E+112 EDWARDS LIFESCIENCES CORP 14,327.00 67.82 971,657.14 2.38% S
HUM 444859102 HUMANA INC 2,542.00 381.58 969,976.36 2.37% S
UNH 91324P102 UNITEDHEALTH GROUP INC 3,314.00 291.23 965,136.22 2.36% S
BBY 86516101 BEST BUY CO INC 11,331.00 84.9 962,001.90 2.35% S
PAYC 70432V102 PAYCOM SOFTWARE INC 3,081.00 309 952,029.00 2.33% S
BURL 122017106 BURLINGTON STORES INC 5,046.00 178.48 900,610.08 2.20% S
X9USDBLYT BLACKROCK TREASURY TRUST INSTL 62 175,822.81 1 175,822.81 0.43% MM
CASH -30,457.42 100 -30,457.42 -0.07% 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

DWEQ Market Cap

DWEQ Sector Allocation

DWEQ Cash Holding

FUND

Fees & Expenses

Management Fee 0.75%
Other Expenses 0.24%
Expense Ratio 0.99%

 

 

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) DWUS
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. The prices of equity securities rise and fall daily. These price movements may result from factors affecting individual issuers, industries or the stock market as a whole. The Fund may experience relatively high portfolio turnover, which may result in increased transaction costs and performance that is lower than expected and potentially greater tax exposure.

 

  • Shares are bought and sold at market price not net asset value (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.