(DWSH) DORSEY WRIGHT SHORT ETF
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||NAV Value||Leverage Exposure|
<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.
- 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.
- 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.
- 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.
- 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.
As of 12/1/2021
|4PM Bid/Offer Midpoint||$9.51||Premium Discount||$0.07|
|Assets Under Management||$38,924,646.35||30-Day Median bid-ask Spread||0.0046243|
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.
As of 10/31/2021
|NAV||Market Price Return||S&P 500 Index|
|Since Inception (7/10/2018, Annualized)||-27.19||-27.23||18.4|
As of 9/30/2021
|NAV||Market Price Return||S&P 500 Index|
|Since Inception (7/10/2018, Annualized)||-27.58||-27.63||16.46|
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.
|Date||Account Symbol||Stock Ticker||Security Number||Security Description||Shares/Par (Full)||Price (Base)||Traded Market Value (Base)||Portfolio Weight %||Asset Group|
|12/01/2021||DWSH||PCG||69331C108||P G & E CORP||-33,247.00||11.75||-390,652.25||-1.00%||S|
|RPM||749685103||RPM INTERNATIONAL INC||-3,668.00||90.38||-331,513.84||-0.85%||S|
|BMRN||09061G101||BIOMARIN PHARMACEUTICAL INC||-3,881.00||84.5||-327,944.50||-0.84%||S|
|NUS||67018T105||NU SKIN ENTERPRISES INC - A||-7,391.00||43.12||-318,699.92||-0.82%||S|
|CHRW||12541W209||C.H. ROBINSON WORLDWIDE INC||-3,270.00||93.87||-306,954.90||-0.79%||S|
|WDC||958102105||WESTERN DIGITAL CORP||-5,314.00||57.72||-306,724.08||-0.79%||S|
|CHD||171340102||CHURCH & DWIGHT CO INC||-3,376.00||90.68||-306,135.68||-0.79%||S|
|XRX||98421M106||XEROX HOLDINGS CORP||-15,700.00||19.16||-300,812.00||-0.77%||S|
|PNW||723484101||PINNACLE WEST CAPITAL||-4,553.00||64.06||-291,665.18||-0.75%||S|
|ALSN||01973R101||ALLISON TRANSMISSION HOLDING||-8,337.00||34.96||-291,461.52||-0.75%||S|
|AXS||G0692U109||AXIS CAPITAL HOLDINGS LTD||-5,840.00||49.74||-290,481.60||-0.75%||FS|
|GDDY||380237107||GODADDY INC - CLASS A||-4,230.00||68||-287,640.00||-0.74%||S|
|RGLD||780287108||ROYAL GOLD INC||-2,935.00||97.65||-286,602.75||-0.74%||S|
|BAX||071813109||BAXTER INTERNATIONAL INC||-3,763.00||75.08||-282,526.04||-0.73%||S|
|ATO||049560105||ATMOS ENERGY CORP||-3,092.00||89.43||-276,517.56||-0.71%||S|
|IPGP||44980X109||IPG PHOTONICS CORP||-1,700.00||162.4||-276,080.00||-0.71%||S|
|FICO||303250104||FAIR ISAAC CORP||-757||363.58||-275,230.06||-0.71%||S|
|OHI||681936100||OMEGA HEALTHCARE INVESTORS||-9,986.00||27.47||-274,315.42||-0.71%||S|
|ERIE||29530P102||ERIE INDEMNITY COMPANY-CL A||-1,468.00||185.52||-272,343.36||-0.70%||S|
|CPB||134429109||CAMPBELL SOUP CO||-6,823.00||39.91||-272,305.93||-0.70%||S|
|MKC||579780206||MCCORMICK & CO-NON VTG SHRS||-3,143.00||86.55||-272,026.65||-0.70%||S|
|BF/B||115637209||BROWN-FORMAN CORP-CLASS B||-3,830.00||70.64||-270,551.20||-0.70%||S|
|VRTX||92532F100||VERTEX PHARMACEUTICALS INC||-1,299.00||205||-266,295.00||-0.68%||S|
|EHC||29261A100||ENCOMPASS HEALTH CORP||-4,656.00||56.6||-263,529.60||-0.68%||S|
|HRL||440452100||HORMEL FOODS CORP||-6,249.00||42.06||-262,832.94||-0.68%||S|
|JAZZ||G50871105||JAZZ PHARMACEUTICALS PLC||-2,163.00||121.16||-262,069.08||-0.67%||FS|
|BKI||09215C105||BLACK KNIGHT INC||-3,615.00||72.07||-260,533.05||-0.67%||S|
|CABO||12685J105||CABLE ONE INC||-149||1,748.31||-260,498.19||-0.67%||S|
|CAG||205887102||CONAGRA BRANDS INC||-8,531.00||30.45||-259,768.95||-0.67%||S|
|LMT||539830109||LOCKHEED MARTIN CORP||-789||328.42||-259,123.38||-0.67%||S|
|SRPT||803607100||SAREPTA THERAPEUTICS INC||-3,151.00||82.19||-258,980.69||-0.67%||S|
|ATUS||02156K103||ALTICE USA INC- A||-16,606.00||15.57||-258,555.42||-0.66%||S|
|TMX||88087E100||TERMINIX GLOBAL HOLDINGS INC||-7,097.00||36.31||-257,692.07||-0.66%||S|
|UAL||910047109||UNITED AIRLINES HOLDINGS INC||-6,595.00||39.06||-257,600.70||-0.66%||S|
|HCSG||421906108||HEALTHCARE SERVICES GROUP||-15,184.00||16.74||-254,180.16||-0.65%||S|
|SMG||810186106||SCOTTS MIRACLE-GRO CO||-1,838.00||138.22||-254,048.36||-0.65%||S|
|RGA||759351604||REINSURANCE GROUP OF AMERICA||-2,688.00||94.51||-254,042.88||-0.65%||S|
|PFGC||71377A103||PERFORMANCE FOOD GROUP CO||-6,500.00||38.97||-253,305.00||-0.65%||S|
|JBLU||477143101||JETBLUE AIRWAYS CORP||-19,606.00||12.86||-252,133.16||-0.65%||S|
|CBRL||22410J106||CRACKER BARREL OLD COUNTRY||-2,063.00||119.4||-246,322.20||-0.63%||S|
|KAR||48238T109||KAR AUCTION SERVICES INC||-16,942.00||14.43||-244,473.06||-0.63%||S|
|RNR||G7496G103||RENAISSANCERE HOLDINGS LTD||-1,561.00||155.48||-242,704.28||-0.62%||FS|
|DAL||247361702||DELTA AIR LINES INC||-7,219.00||33.53||-242,053.07||-0.62%||S|
|COMM||20337X109||COMMSCOPE HOLDING CO INC||-24,074.00||10.03||-241,462.22||-0.62%||S|
|WW||98262P101||WW INTERNATIONAL INC||-14,700.00||16.41||-241,227.00||-0.62%||S|
|NBIX||64125C109||NEUROCRINE BIOSCIENCES INC||-2,982.00||80.79||-240,915.78||-0.62%||S|
|LW||513272104||LAMB WESTON HOLDINGS INC||-4,789.00||50.24||-240,599.36||-0.62%||S|
|BWXT||05605H100||BWX TECHNOLOGIES INC||-5,136.00||46.81||-240,416.16||-0.62%||S|
|AGIO||00847X104||AGIOS PHARMACEUTICALS INC||-6,849.00||35.04||-239,988.96||-0.62%||S|
|PRGO||G97822103||PERRIGO CO PLC||-6,675.00||35.85||-239,298.75||-0.62%||FS|
|SAGE||78667J108||SAGE THERAPEUTICS INC||-6,401.00||37.15||-237,797.15||-0.61%||S|
|LVS||517834107||LAS VEGAS SANDS CORP||-6,998.00||33.98||-237,792.04||-0.61%||S|
|D||25746U109||DOMINION ENERGY INC||-3,353.00||70.85||-237,560.05||-0.61%||S|
|VZ||92343V104||VERIZON COMMUNICATIONS INC||-4,761.00||49.77||-236,954.97||-0.61%||S|
|WYNN||983134107||WYNN RESORTS LTD||-3,081.00||76.06||-234,340.86||-0.60%||S|
|SVC||81761L102||SERVICE PROPERTIES TRUST||-28,504.00||8.08||-230,312.32||-0.59%||S|
|DISCA||25470F104||DISCOVERY INC - A||-10,272.00||22.26||-228,654.72||-0.59%||S|
|CLB||N22717107||CORE LABORATORIES N.V.||-10,181.00||22.41||-228,156.21||-0.59%||FS|
|CDK||12508E101||CDK GLOBAL INC||-5,860.00||38.8||-227,368.00||-0.58%||S|
|LOPE||38526M106||GRAND CANYON EDUCATION INC||-3,176.00||70.22||-223,018.72||-0.57%||S|
|MKTX||57060D108||MARKETAXESS HOLDINGS INC||-646||343.73||-222,049.58||-0.57%||S|
|NCLH||G66721104||NORWEGIAN CRUISE LINE HOLDIN||-12,371.00||17.79||-220,080.09||-0.57%||FS|
|VIAC||92556H206||VIACOMCBS INC - CLASS B||-7,244.00||29.7||-215,146.80||-0.55%||S|
|WU||959802109||WESTERN UNION CO||-13,196.00||16.23||-214,171.08||-0.55%||S|
|FLT||339041105||FLEETCOR TECHNOLOGIES INC||-1,061.00||200.83||-213,080.63||-0.55%||S|
|IONS||462222100||IONIS PHARMACEUTICALS INC||-8,310.00||25.61||-212,819.10||-0.55%||S|
|EXAS||30063P105||EXACT SCIENCES CORP||-2,596.00||80.28||-208,406.88||-0.54%||S|
|ATVI||00507V109||ACTIVISION BLIZZARD INC||-3,636.00||57.28||-208,270.08||-0.54%||S|
|DHC||25525P107||DIVERSIFIED HEALTHCARE TRUST||-77,087.00||2.61||-201,197.07||-0.52%||S|
|OLED||91347P105||UNIVERSAL DISPLAY CORP||-1,401.00||141.62||-198,409.62||-0.51%||S|
|CTXS||177376100||CITRIX SYSTEMS INC||-2,476.00||78.72||-194,910.72||-0.50%||S|
|FIS||31620M106||FIDELITY NATIONAL INFO SERV||-1,899.00||102.36||-194,381.64||-0.50%||S|
|GPN||37940X102||GLOBAL PAYMENTS INC||-1,472.00||117.86||-173,489.92||-0.45%||S|
|OGN||68622V106||ORGANON & CO||-250||28.73||-7,182.50||-0.02%||S|
|HOLD||00768Y651||ADVISORSHARES NORTH SQUARE M||100,000.00||98.43||9,843,000.00||25.29%||MF|
|X9USDISLQ||INVESCO GOVT AGENCY INSTL 1901||27,291,960.46||1||27,291,960.46||70.13%||MM|
As of 9/30/2021
DWSH Performance During Market Drawdowns
DWSH Sector Allocation
DWSH Market Cap
Fees & Expenses
|Acquired Fund Fees||0.20%|
|Gross Expenses Ratio||3.75%|
|Fee Waiver and/or Expense Reimbursement||-0.07%|
|Net Expense Ratio||3.68%|
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 2.46% is short interest expense and 0.34% in remaining expenses.
|Ex-Date||Record Date||Pay Date||Cash Div||ST Cap Gain||LT Cap Gain||Return of Capital||Total Distribution (per share)||DWSH|