DWSH: 4th Quarter 2021 Portfolio Review
The S&P 500 was up 28.71% in 2021. Needless to say, that kind of market performance makes it difficult for a short ETF to make headway. DWSH only fell -25.70% for the year, meaning shorting relative strength laggards provided outperformance vs. expectations. Q4 was a solid quarter for the DWSH as it only fell -3.30% while the S&P 500 climbed 11.03%. That outperformance largely came in October-November when DWSH equaled the S&P 500’s return (6.26%) during a positive upswing for the index. The laggard rally in December undid some of that outperformance, but not enough to detract entirely from the quarter.
Currently the portfolio is comprised of 101 companies spread across the major macro sectors. This number will fluctuate over time as positions grow to a larger allocation of the portfolio and as securities are replaced in our sell process. As securities are removed from the portfolio, the new purchases will be allocated at roughly equal weight, depending on the cash level. Over the quarter we saw over 40% of the portfolio turnover as trends continued to change in the markets and previously out of favor areas roared back into focus.
Top 10 Holdings
|Ticker||Security Description||Portfolio Weight %|
|NUS||NU SKIN ENTERPRISES INC – A||-1.29%|
|GDDY||GODADDY INC – CLASS A||-1.22%|
|XRX||XEROX HOLDINGS CORP||-1.21%|
|WDC||WESTERN DIGITAL CORP||-1.18%|
|RGLD||ROYAL GOLD INC||-1.15%|
As of 12.31.2021
DWSH’s portfolio has continued to adapt to changes in the market, as the leaders and laggards continue to respond to an ever-extending bull market that has broken multiple highs over the course of the quarter. Although the market has blasted through to new highs, we have seen upticks in allocations to diverging sectors such as Technology and Consumer Discretionary.
As of 12.31.2021.
John G. Lewis
Nasdaq Dorsey Wright
AdvisorShares Dorsey Wright Short ETF (DWSH) Portfolio Manager
Past Manager Commentary