(DWEQ) DORSEY WRIGHT ALPHA EQUAL WEIGHT ETF
NAV as of 5/27/2020
$19.02
1 Day NAV Change as of 5/27/2020
$-0.04
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>
- Concentrated Portfolio– DWEQ typically has a portfolio of 40 to 50 large cap domestic equities.
- 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.
- 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.
- 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.
- 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 5/27/2020
| NAV | $19.02 | Closing Price | $19.06 |
| Change | $-0.04 | Close Change | $-0.04 |
| Shares Outstanding | 1,450,000 | Volume | 15,803 |
| 4PM Bid/Offer Midpoint | $19.07 | Premium Discount | $0.05 |
| Assets Under Management | $27,584,884.61 |
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 4/30/2020
| NAV | Market Price Return | S&P 500 Index | |
|---|---|---|---|
| 1 Month | -0.45 | -0.59 | 12.82 |
| 3 Months | -29.37 | -29.28 | -9.26 |
| YTD | -26.42 | -26.40 | -9.29 |
| Since Inception (12/26/2019, Annualized) | -26.68 | -26.54 | 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 5/27/2020
| Date | Account Symbol | Stock Ticker | Security Number | Security | Shares | Price | Market Value | Weight % | Asset Group | |
|---|---|---|---|---|---|---|---|---|---|---|
| 05/27/2020 | DWEQ | ERI | 28470R102 | ELDORADO RESORTS INC | 25,126.00 | 36.42 | 915,088.92 | 3.32% | S | 1 |
| MRNA | 60770K107 | MODERNA INC | 14,140.00 | 52.18 | 737,825.20 | 2.67% | S | |||
| W | 94419L101 | WAYFAIR INC- CLASS A | 4,701.00 | 153.89 | 723,436.89 | 2.62% | S | |||
| NVDA | 67066G104 | NVIDIA CORP | 2,006.00 | 341.01 | 684,066.06 | 2.48% | S | |||
| POOL | 73278L105 | POOL CORP | 2,640.00 | 254.47 | 671,800.80 | 2.44% | S | |||
| CMG | 169656105 | CHIPOTLE MEXICAN GRILL INC | 673.00 | 990.00 | 666,270.00 | 2.42% | S | |||
| CVNA | 146869102 | CARVANA CO | 6,897.00 | 96.14 | 663,077.58 | 2.40% | S | |||
| TYL | 902252105 | TYLER TECHNOLOGIES INC | 1,806.00 | 365 | 659,190.00 | 2.39% | S | |||
| FIVN | 338307101 | FIVE9 INC | 6,655.00 | 98.61 | 656,249.55 | 2.38% | S | |||
| DXCM | 252131107 | DEXCOM INC | 1,808.00 | 359.63 | 650,211.04 | 2.36% | S | |||
| BURL | 122017106 | BURLINGTON STORES INC | 3,057.00 | 210.32 | 642,948.24 | 2.33% | S | |||
| HD | 437076102 | HOME DEPOT INC | 2,577.00 | 247.36 | 637,446.72 | 2.31% | S | |||
| NKE | 654106103 | NIKE INC -CL B | 6,321.00 | 99.87 | 631,278.27 | 2.29% | S | |||
| MASI | 574795100 | MASIMO CORP | 2,791.00 | 224.25 | 625,881.75 | 2.27% | S | |||
| AAPL | 37833100 | APPLE INC | 1,942.00 | 318.11 | 617,769.62 | 2.24% | S | |||
| WST | 955306105 | WEST PHARMACEUTICAL SERVICES | 3,066.00 | 201.29 | 617,155.14 | 2.24% | S | |||
| HELE | G4388N106 | HELEN OF TROY LTD | 3,324.00 | 184.17 | 612,181.08 | 2.22% | FS | |||
| MTD | 592688105 | METTLER-TOLEDO INTERNATIONAL | 775.00 | 788.31 | 610,940.25 | 2.21% | S | |||
| NOW | 81762P102 | SERVICENOW INC | 1,641.00 | 371.16 | 609,073.56 | 2.21% | S | |||
| DG | 256677105 | DOLLAR GENERAL CORP | 3,236.00 | 187.2 | 605,779.20 | 2.20% | S | |||
| MA | 57636Q104 | MASTERCARD INC - A | 2,012.00 | 299.77 | 603,137.24 | 2.19% | S | |||
| DPZ | 25754A201 | DOMINO'S PIZZA INC | 1,612.00 | 373.97 | 602,839.64 | 2.19% | S | |||
| CDNS | 127387108 | CADENCE DESIGN SYS INC | 7,036.00 | 85.20 | 599,467.20 | 2.17% | S | |||
| PAYC | 70432V102 | PAYCOM SOFTWARE INC | 2,077.00 | 287.06 | 596,223.62 | 2.16% | S | |||
| VEEV | 922475108 | VEEVA SYSTEMS INC-CLASS A | 3,092.00 | 191.99 | 593,633.08 | 2.15% | S | |||
| HUM | 4.45E+08 | HUMANA INC | 1,468.00 | 399.34 | 586,231.12 | 2.13% | S | |||
| AVGO | 11135F101 | BROADCOM INC | 2,038.00 | 287.59 | 586,108.42 | 2.12% | S | |||
| ANSS | 03662Q105 | ANSYS INC | 2,175.00 | 269.31 | 585,749.25 | 2.12% | S | |||
| TTD | 88339J105 | TRADE DESK INC/THE -CLASS A | 1,987.00 | 294.23 | 584,635.01 | 2.12% | S | |||
| MPWR | 609839105 | MONOLITHIC POWER SYSTEMS INC | 2,779.00 | 209.76 | 582,923.04 | 2.11% | S | |||
| UNH | 91324P102 | UNITEDHEALTH GROUP INC | 1,916.00 | 303.77 | 582,023.32 | 2.11% | S | |||
| FISV | 3.38E+08 | FISERV INC | 5,480.00 | 105.35 | 577,318.00 | 2.09% | S | |||
| EPAM | 29414B104 | EPAM SYSTEMS INC | 2,569.00 | 223.93 | 575,276.17 | 2.09% | S | |||
| AMED | 2.34E+07 | AMEDISYS INC | 3,134.00 | 182.89 | 573,177.26 | 2.08% | S | |||
| EW | 2.82E+112 | EDWARDS LIFESCIENCES CORP | 2,628.00 | 216.35 | 568,567.80 | 2.06% | S | |||
| BBY | 8.65E+07 | BEST BUY CO INC | 7,112.00 | 79.08 | 562,416.96 | 2.04% | S | |||
| AMZN | 2.31E+07 | AMAZON.COM INC | 232.00 | 2,410.39 | 559,210.48 | 2.03% | S | |||
| DHR | 2.36E+08 | DANAHER CORP | 3,462.00 | 160.78 | 556,620.36 | 2.02% | S | |||
| BDX | 7.59E+07 | BECTON DICKINSON AND CO | 2,305.00 | 234.80 | 541,214.00 | 1.96% | S | |||
| PODD | 45784P101 | INSULET CORP | 2,983.00 | 178.43 | 532,256.69 | 1.93% | S | |||
| X9USDBLYT | BLACKROCK TREASURY TRUST INSTL 62 | 8,255,237.44 | 1 | 8,255,237.44 | 29.93% | MM | ||||
| CASH | -5,458,284.12 | 100 | -5,458,284.12 | -19.79% | CA |
FUND
Characteristics
As of 4/30/2020
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) | DWMC | |
|---|---|---|---|---|---|---|---|---|---|
| 12/23/2020 | 12/28/2020 | 12/31/2020 | - | - | - | - | - | FORMULA |
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- 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.
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- 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.
- 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.