(DWSH) DORSEY WRIGHT SHORT ETF

DWSH

Overview

Markets can easily move in any direction and an investment portfolio can easily follow suit. Similar to insuring the most valuable and important possessions in life, incorporating a hedge into an equity allocation can provide an effective means of delivering protection to an investment portfolio during unexpected market downturns. Such a specialized approach to long/short diversification requires a specialized skill set from a manager with a deep expertise in navigating all aspects of the equity market.

The AdvisorShares Dorsey Wright Short ETF (Ticker: DWSH) is managed by Nasdaq Dorsey Wright a firm renowned for relative strength investing. Relative strength investing involves buying securities that have appreciated in price more than the other securities in their investment universe and holding those securities until they exhibit sell signals. In implementing DWSH’s shorting strategy to its core philosophy of relative strength investing, Dorsey Wright identifies and short sells those securities with the highest relative weakness within an investment universe primarily comprised of large-capitalization U.S.-traded equities. DWSH’s investment process is purely systematic and removes any human emotion from the day-to-day decision making.

Symbol Exchange Inception Date CUSIP Indicative Value Leverage Exposure
DWSH Nasdaq 7/10/2018 00768Y529 DWSH.IV No
<strong>Why Invest in DWSH?</strong>
  • Hedging Investment Tool – DWSH can be implemented as part of a long/short strategy to provide an investor with a “buy and hold” alternative to hedge their long domestically-traded equity exposure.
  • Alpha-Seeking Exposure – DWSH’s systematic and selective approach offers the potential opportunity to add alpha to an investment portfolio, especially during a bear market. At certain technical levels during severe market downturns, the strategy can allocate its short exposure more broadly to the domestic equity market – by shorting individual ETFs or futures contracts – seeking to enhance its total return.
  • For Manager Diversification – Through an established portfolio manager, spreading your investment risk among equities not correlated to the broader market can help diversify and mitigate your overall portfolio risk. DWSH differs considerably from inverse ETF investment strategies, which are subject to daily resets and blindly sell short the top companies within a market-cap weighted index such as the S&P 500.
  • For Strategy Diversification – The systematic portfolio management process seeks to limit unnecessary risk and maximize exposure to the momentum factor. If a security becomes too large as a percentage of the portfolio it is trimmed to bring it back in line with the other security weights. The process also seeks to similarly spread out allocations within its stock model. The objective sell discipline represents an important component of the portfolio construction process.
<strong>Where Can DWSH Fit in a Traditional Portfolio?</strong>

DWSH can provide a satellite equity holding to a broad-based equity allocation that may be used to hedge volatility and risk for similar long equity exposure, seeking positive returns in a declining equity market.

<strong>Key Attributes</strong>
  1. Dedicated Short Portfolio of Weakest Companies – DWSH typically has a portfolio of 75 – 100 equities that begin with a modified equal weighting, demonstrating the highest relative weakness characteristics according to Dorsey Wright’s proprietary individual stock rotation methodology.
  2. Systematic Approach – DWSH’s investment process is entirely systematic and is designed to remove human emotion from the decision process. This approach allows the portfolio manager the ability to continually execute their proven investment process through all types of different markets. The process also allows the portfolio manager the ability to analyze a large number of securities that may become very different over time.
  3. Relative Strength/Weakness Analysis – DWSH uses a core philosophy of relative strength investing, which compares price performance within a universe of stocks. Relative strength investing provides a repeatable process both to identify and to identify and select the leaders, as well as conversely to identify and select the laggards through relative weakness to sell short.
  4. Disciplined Sell Process – Securities are automatically sold from the portfolio when they surpass a predetermined rank threshold. The sell rank is determined when the security is purchased and is not adjusted for different market scenarios. The sell process is entirely based on technical, systematic ranks and does not allow for any portfolio manager discretion or overrides.
<strong>About the Portfolio Manager</strong>

John G. Lewis, CMT, Senior Portfolio Manager
John Lewis is a Senior Portfolio manager with Nasdaq Dorsey Wright. In this role, Mr. Lewis is responsible for the investment strategies used in various different indices and models.

Since joining the firm in 2002, Mr. Lewis has developed strategies for the firm’s Systematic Relative Strength series of separate accounts, the Technical Leaders Index methodology, global asset allocation strategies, and multiple series of UITs. His work is technically driven and focuses on relative strength and momentum as the main factors in the investment process.

One of the foremost experts on relative strength investing, Mr. Lewis has authored several original research papers on the subject. He is a Chartered Market Technician (CMT) and a member of the Market Technician’s Association and the American Association of Professional Technical Analysts. Mr. Lewis earned an M.B.A. in Finance from the University of Southern California and a B.A. from the University of San Diego.

Fund

Price History

As of 9/23/2021

NAV $8.76 Closing Price $8.79
Change $-0.10 Close Change $-0.05
Shares Outstanding 3,230,000 Volume 13,140
4PM Bid/Offer Midpoint $8.78 Premium Discount $0.02
Assets Under Management $28,279,498.22 30-Day Median bid-ask Spread 0.0045558
Premium/Discount Historical Data | NAV Historical Data | Daily Premium/Discount 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 8/31/2021

NAV Market Price Return S&P 500 Index
1 Month -0.71 -1.26 3.04
3 Months -1.54 -1.93 7.95
YTD -24.75 -24.65 21.58
1 Year -51.27 -51.3 31.17
Since Inception (7/10/2018, Annualized) -28.62 -28.68 18.71

As of 6/30/2021

  NAV Market Price Return S&P 500 Index
1 Month -2.17 -2.62 2.33
3 Months -7.55 -7.56 8.55
YTD -25.22 -25.17 15.25
1 Year -55.58 -55.79 40.79
Since Inception (7/10/2018, Annualized) -30.13 -30.21 17.74

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

Excel    CSV

Date Account Symbol Stock Ticker Security Number Security Description Shares/Par (Full) Price (Base) Traded Market Value (Base) Portfolio Weight % Asset Group
09/24/2021 DWSH COG 127097103 CABOT OIL & GAS CORP -18,477.00 20.34 -375,822.18 -1.33% S
EXEL 30161Q104 EXELIXIS INC -15,920.00 20.35 -323,972.00 -1.15% S
CCL 143658300 CARNIVAL CORP -12,700.00 25.44 -323,088.00 -1.14% FS
MSGS 55825T103 MADISON SQUARE GARDEN SPORTS -1,653.00 192.3 -317,871.90 -1.12% S
SABR 78573M104 SABRE CORP -25,876.00 12.2 -315,687.20 -1.12% S
PCG 69331C108 P G & E CORP -31,718.00 9.94 -315,276.92 -1.12% S
DAL 247361702 DELTA AIR LINES INC -7,219.00 43.53 -314,243.07 -1.11% S
NCLH G66721104 NORWEGIAN CRUISE LINE HOLDIN -11,150.00 28.1 -313,315.00 -1.11% FS
BAX 071813109 BAXTER INTERNATIONAL INC -3,763.00 80.85 -304,238.55 -1.08% S
EIX 281020107 EDISON INTERNATIONAL -5,274.00 57.57 -303,624.18 -1.07% S
CNK 17243V102 CINEMARK HOLDINGS INC -16,000.00 18.84 -301,440.00 -1.07% S
CBRL 22410J106 CRACKER BARREL OLD COUNTRY -2,063.00 144.94 -299,011.22 -1.06% S
UAL 910047109 UNITED AIRLINES HOLDINGS INC -6,117.00 48.79 -298,448.43 -1.06% S
NEU 651587107 NEWMARKET CORP -885 336.84 -298,103.40 -1.05% S
RES 749660106 RPC INC -69,000.00 4.31 -297,390.00 -1.05% S
SGEN 81181C104 SEAGEN INC -1,843.00 161.34 -297,349.62 -1.05% S
HFC 436106108 HOLLYFRONTIER CORP -9,183.00 32.31 -296,702.73 -1.05% S
TRIP 896945201 TRIPADVISOR INC -8,100.00 36.62 -296,622.00 -1.05% S
FISV 337738108 FISERV INC -2,702.00 109.74 -296,517.48 -1.05% S
VST 92840M102 VISTRA CORP -16,870.00 17.56 -296,237.20 -1.05% S
SPLK 848637104 SPLUNK INC -1,956.00 151.12 -295,590.72 -1.05% S
SVC 81761L102 SERVICE PROPERTIES TRUST -26,036.00 11.3 -294,206.80 -1.04% S
JBLU 477143101 JETBLUE AIRWAYS CORP -18,204.00 16.05 -292,174.20 -1.03% S
K 487836108 KELLOGG CO -4,575.00 63.78 -291,793.50 -1.03% S
SAGE 78667J108 SAGE THERAPEUTICS INC -6,401.00 45.42 -290,733.42 -1.03% S
CPB 134429109 CAMPBELL SOUP CO -6,823.00 42.43 -289,499.89 -1.02% S
BLUE 09609G100 BLUEBIRD BIO INC -15,619.00 18.44 -288,014.36 -1.02% S
PFGC 71377A103 PERFORMANCE FOOD GROUP CO -6,057.00 47.46 -287,465.22 -1.02% S
PRGO G97822103 PERRIGO CO PLC -6,675.00 43 -287,025.00 -1.02% FS
SRPT 803607100 SAREPTA THERAPEUTICS INC -3,151.00 90.57 -285,386.07 -1.01% S
PCAR 693718108 PACCAR INC -3,543.00 80.53 -285,317.79 -1.01% S
HCSG 421906108 HEALTHCARE SERVICES GROUP -11,500.00 24.78 -284,970.00 -1.01% S
CAG 205887102 CONAGRA BRANDS INC -8,531.00 33.35 -284,508.85 -1.01% S
FLT 339041105 FLEETCOR TECHNOLOGIES INC -1,061.00 267.11 -283,403.71 -1.00% S
NBIX 64125C109 NEUROCRINE BIOSCIENCES INC -2,982.00 94.99 -283,260.18 -1.00% S
BFAM 109194100 BRIGHT HORIZONS FAMILY SOLUT -1,976.00 143.35 -283,259.60 -1.00% S
WW 98262P101 WW INTERNATIONAL INC -14,700.00 19.24 -282,828.00 -1.00% S
CHD 171340102 CHURCH & DWIGHT CO INC -3,376.00 82.98 -280,140.48 -0.99% S
NOV 62955J103 NOV INC -21,593.00 12.96 -279,845.28 -0.99% S
IPGP 44980X109 IPG PHOTONICS CORP -1,700.00 164.27 -279,259.00 -0.99% S
NKTR 640268108 NEKTAR THERAPEUTICS -15,075.00 18.51 -279,038.25 -0.99% S
FLR 343412102 FLUOR CORP -17,186.00 16.21 -278,585.06 -0.99% S
CLX 189054109 CLOROX COMPANY -1,690.00 164.56 -278,106.40 -0.98% S
CHE 16359R103 CHEMED CORP -593 468.39 -277,755.27 -0.98% S
CABO 12685J105 CABLE ONE INC -149 1,859.53 -277,069.97 -0.98% S
LOPE 38526M106 GRAND CANYON EDUCATION INC -3,176.00 86.93 -276,089.68 -0.98% S
LMT 539830109 LOCKHEED MARTIN CORP -789 349.52 -275,771.28 -0.98% S
MKTX 57060D108 MARKETAXESS HOLDINGS INC -646 424 -273,904.00 -0.97% S
CHRW 12541W209 C.H. ROBINSON WORLDWIDE INC -3,085.00 88.51 -273,053.35 -0.97% S
RGA 759351604 REINSURANCE GROUP OF AMERICA -2,478.00 110.14 -272,926.92 -0.97% S
CTXS 177376100 CITRIX SYSTEMS INC -2,476.00 110.19 -272,830.44 -0.97% S
KMT 489170100 KENNAMETAL INC -7,732.00 35.15 -271,779.80 -0.96% S
ARMK 03852U106 ARAMARK -8,155.00 33.25 -271,153.75 -0.96% S
KMB 494368103 KIMBERLY-CLARK CORP -2,037.00 132.99 -270,900.63 -0.96% S
TREE 52603B107 LENDINGTREE INC -1,748.00 154.5 -270,066.00 -0.96% S
INTC 458140100 INTEL CORP -4,979.00 54.22 -269,961.38 -0.95% S
FMC 302491303 FMC CORP -2,855.00 94.14 -268,769.70 -0.95% S
GIS 370334104 GENERAL MILLS INC -4,439.00 60.54 -268,737.06 -0.95% S
MRK 58933Y105 MERCK & CO. INC. -3,648.00 73.61 -268,529.28 -0.95% S
KEX 497266106 KIRBY CORP -5,333.00 50.22 -267,823.26 -0.95% S
WU 959802109 WESTERN UNION CO -13,196.00 20.23 -266,955.08 -0.94% S
LW 513272104 LAMB WESTON HOLDINGS INC -4,389.00 60.79 -266,807.31 -0.94% S
CL 194162103 COLGATE-PALMOLIVE CO -3,479.00 76.63 -266,595.77 -0.94% S
MKC 579780206 MCCORMICK & CO-NON VTG SHRS -3,143.00 84.55 -265,740.65 -0.94% S
ERIE 29530P102 ERIE INDEMNITY COMPANY-CL A -1,468.00 180.96 -265,649.28 -0.94% S
VIAC 92556H206 VIACOMCBS INC - CLASS B -6,637.00 39.99 -265,413.63 -0.94% S
KAR 48238T109 KAR AUCTION SERVICES INC -16,942.00 15.66 -265,311.72 -0.94% S
AXS G0692U109 AXIS CAPITAL HOLDINGS LTD -5,840.00 45.07 -263,208.80 -0.93% FS
BF/B 115637209 BROWN-FORMAN CORP-CLASS B -3,830.00 68.64 -262,891.20 -0.93% S
BWXT 05605H100 BWX TECHNOLOGIES INC -4,729.00 55.31 -261,560.99 -0.93% S
T 00206R102 AT&T INC -9,621.00 27.13 -261,017.73 -0.92% S
VZ 92343V104 VERIZON COMMUNICATIONS INC -4,761.00 54.37 -258,855.57 -0.92% S
NEM 651639106 NEWMONT CORP -4,800.00 53.87 -258,576.00 -0.91% S
LVS 517834107 LAS VEGAS SANDS CORP -6,998.00 36.9 -258,226.20 -0.91% S
CDK 12508E101 CDK GLOBAL INC -5,860.00 43.76 -256,433.60 -0.91% S
WEX 96208T104 WEX INC -1,494.00 171.26 -255,862.44 -0.91% S
BKI 09215C105 BLACK KNIGHT INC -3,615.00 70.58 -255,146.70 -0.90% S
HRL 440452100 HORMEL FOODS CORP -6,249.00 40.8 -254,959.20 -0.90% S
ATO 049560105 ATMOS ENERGY CORP -2,856.00 88.22 -251,956.32 -0.89% S
D 25746U109 DOMINION ENERGY INC -3,353.00 74.58 -250,066.74 -0.88% S
ED 209115104 CONSOLIDATED EDISON INC -3,414.00 73 -249,222.00 -0.88% S
FLO 343498101 FLOWERS FOODS INC -10,607.00 23.41 -248,309.87 -0.88% S
DHC 25525P107 DIVERSIFIED HEALTHCARE TRUST -70,808.00 3.48 -246,411.84 -0.87% S
SMG 810186106 SCOTTS MIRACLE-GRO CO -1,675.00 144.85 -242,623.75 -0.86% S
OLED 91347P105 UNIVERSAL DISPLAY CORP -1,270.00 190.67 -242,150.90 -0.86% S
DISCA 25470F104 DISCOVERY INC - A -9,456.00 25.3 -239,236.80 -0.85% S
GPN 37940X102 GLOBAL PAYMENTS INC -1,472.00 161.64 -237,934.08 -0.84% S
ATUS 02156K103 ALTICE USA INC- A -11,400.00 20.58 -234,612.00 -0.83% S
DLTR 256746108 DOLLAR TREE INC -2,775.00 84.54 -234,598.50 -0.83% S
TTWO 874054109 TAKE-TWO INTERACTIVE SOFTWRE -1,591.00 147.36 -234,449.76 -0.83% S
FIS 31620M106 FIDELITY NATIONAL INFO SERV -1,899.00 122.03 -231,734.97 -0.82% S
EXAS 30063P105 EXACT SCIENCES CORP -2,377.00 96.02 -228,239.54 -0.81% S
WYNN 983134107 WYNN RESORTS LTD -2,750.00 82.88 -227,920.00 -0.81% S
FGEN 31572Q808 FIBROGEN INC -20,789.00 10.8 -224,521.20 -0.79% S
IONS 462222100 IONIS PHARMACEUTICALS INC -6,164.00 36.2 -223,136.80 -0.79% S
BMRN 09061G101 BIOMARIN PHARMACEUTICAL INC -2,813.00 78.6 -221,101.80 -0.78% S
VRTX 92532F100 VERTEX PHARMACEUTICALS INC -1,199.00 183.61 -220,148.39 -0.78% S
RNR G7496G103 RENAISSANCERE HOLDINGS LTD -1,561.00 140.39 -219,148.79 -0.78% FS
ALSN 01973R101 ALLISON TRANSMISSION HOLDING -6,143.00 35.3 -216,847.90 -0.77% S
INCY 45337C102 INCYTE CORP -3,124.00 69 -215,556.00 -0.76% S
RGLD 780287108 ROYAL GOLD INC -2,139.00 100.23 -214,391.97 -0.76% S
674599162 OCCIDENTAL PETROLEUM-CW27 -8,342.00 10.51 -87,674.42 -0.31% W
OGN 68622V106 ORGANON & CO -250 33.69 -8,422.50 -0.03% S
HOLD 00768Y651 ADVISORSHARES SAGE CORE RESE 100,000.00 98.63 9,863,000.00 34.87% MF
CASH 19,443,086.40 100 19,443,086.40 68.74% CA
X9USDISLQ INVESCO GOVT AGENCY INSTL 1901 26,516,374.98 1 26,516,374.98 93.74% MM
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 7/31/2021

DWSH Performance During Market Drawdowns

DWSH Sector Allocation

DWSH Market Cap

FUND

Fees & Expenses

Management Fee 0.75%
Other Expenses 2.81%
Acquired Fund Fees 0.11%
Gross Expenses Ratio 3.67%
Net Expense Ratio 3.67%

Advisor has contractually agreed to reduce its fees and/or reimburse expenses 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 1.25% of the Fund’s average daily net assets for at least one year from the date of the Prospectus. “Other Expenses” is comprised of 1.71% is short interest expense and 0.80% in remaining expenses.

Last Ten

Fund Distributions

    • 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.The Fund is subject to a number of risks that may affect the value of its shares, including the possible loss of principal. Short sales are transactions in which the Fund sells a security it does not own. To complete the transaction, the Fund must borrow the security to make delivery to the buyer. The Fund is then obligated to replace the security borrowed by purchasing the security at the market price at the time of replacement. If the underlying security goes down in price between the time the Fund sells the security and buys it back, the Fund will realize a gain on the transaction. Conversely, if the underlying security goes up in price during the period, the Fund will realize a loss on the transaction. Any such loss is increased by the amount of premium or interest the Fund must pay to the lender of the security. Likewise, any gain will be decreased by the amount of premium or interest the Fund must pay to the lender of the security. Because a short position loses value as the security’s price increases, the loss on a short sale is theoretically unlimited. Short sales involve leverage because the Fund borrows securities and then sells them, effectively leveraging its assets. The use of leverage may magnify gains or losses for the Fund. As with any fund, there is no guarantee that the Fund will achieve its investment objective.

      Definitions

      Alpha: One of the most commonly quoted indicators of investment performance, alpha, is defined as the excess return on an investment relative to the return on a benchmark index.  

      Short: A short, or a short position, is created when a trader sells a security first with the intention of repurchasing it or covering it later at a lower price.