(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 1/24/2020

NAV $26.34 Closing Price $26.35
Change $-0.06 Close Change $-0.07
Shares Outstanding 1,275,000 Volume 174
4PM Bid/Offer Midpoint $26.36 Premium Discount $0.02
Assets Under Management $33,578,430.94    

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

Holdings

As of 1/24/2020

Date Account Symbol Stock Ticker Security Number Security Shares Price Market Value Weight % Asset Group
01/24/2020 DWEQ AYX 02156B103 ALTERYX INC - CLASS A 7,803 134.68 1,050,908.04 3.13% S 1
PAYC 70432V102 PAYCOM SOFTWARE INC 3,009 314.81 947,263.29 2.82% S
AWK 30420103 AMERICAN WATER WORKS CO INC 6,579 135.78 893,296.62 2.66% S
EVRG 30034W106 EVERGY INC 12,444 71.37 888,128.28 2.65% S
COUP 22266L106 COUPA SOFTWARE INC 5,355 163.70 876,613.50 2.61% S
ETR 29364G103 ENTERGY CORP 6,681 130.73 873,407.13 2.60% S
OKTA 679295105 OKTA INC 6,732 129.66 872,871.12 2.60% S
AEP 25537101 AMERICAN ELECTRIC POWER 8,517 102.16 870,096.72 2.59% S
LNT 18802108 ALLIANT ENERGY CORP 14,688 58.93 865,563.84 2.58% S
CMS 125896100 CMS ENERGY CORP 12,801 67.49 863,939.49 2.57% S
NEE 65339F101 NEXTERA ENERGY INC 3,264 263.72 860,782.08 2.56% S
CDNS 127387108 CADENCE DESIGN SYS INC 11,475 74.58 855,805.50 2.55% S
CHDN 171484108 CHURCHILL DOWNS INC 5,967 142.97 853,101.99 2.54% S
PNM 69349H107 PNM RESOURCES INC 15,963 53.44 853,062.72 2.54% S
ATO 49560105 ATMOS ENERGY CORP 7,242 117.38 850,065.96 2.53% S
EPAM 29414B104 EPAM SYSTEMS INC 3,723 227.57 847,243.11 2.52% S
IDA 451107106 IDACORP INC 7,548 112.04 845,677.92 2.52% S
NVDA 67066G104 NVIDIA CORP 3,315 250.48 830,341.20 2.47% S
HD 437076102 HOME DEPOT INC 3,570 232.00 828,240.00 2.47% S
DTE 233331107 DTE ENERGY COMPANY 6,222 132.76 826,032.72 2.46% S
FISV 337738108 FISERV INC 6,834 120.84 825,820.56 2.46% S
POOL 73278L105 POOL CORP 3,723 219.95 818,873.85 2.44% S
NKE 654106103 NIKE INC -CL B 8,007 102.03 816,954.21 2.43% S
MPWR 609839105 MONOLITHIC POWER SYSTEMS INC 4,437 183.29 813,257.73 2.42% S
NVR 62944T105 NVR INC 204 3,983.60 812,654.40 2.42% S
BBY 86516101 BEST BUY CO INC 9,078 89.44 811,936.32 2.42% S
AVGO 11135F101 BROADCOM INC 2,448 324.00 793,152.00 2.36% S
BURL 122017106 BURLINGTON STORES INC 3,468 220.74 765,526.32 2.28% S
VAC 57164Y107 MARRIOTT VACATIONS WORLD 6,222 122.27 760,763.94 2.27% S
CASH (7,759) 100.00 -7,759.20 -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

Fees & Expenses

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

The Advisor has contractually agreed to waive its fees and/or reimburse expenses in order to keep net expenses(excluding amounts payable pursuant to any plan adopted in accordance with Rule 12b-1, interest expense, taxes, brokerage commissions, acquired fund fees and expenses, other expenditures which are capitalized in accordance with generally accepted accounting principles, and extraordinary expenses) from exceeding 0.99% of each Fund’s average daily net assets for at least one year from the date of this Prospectus.

 

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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Contact Info

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Location

AdvisorShares Investments, LLC
4800 Montgomery Lane,
Suite 150
Bethesda, Maryland 20814

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Copyright © AdvisorShares 2019 • Foreside Fund Services, LLC Distributor

    • 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.