(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 3/31/2020

NAV $35.01 Closing Price $35.57
Change $0.04 Close Change $0.38
Shares Outstanding 2,775,000 Volume 367,717
4PM Bid/Offer Midpoint $35.50 Premium Discount $0.48
Assets Under Management $97,160,198.88    

Premium/Discount Historical Data | 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

Performance

As of 2/29/2020

NAV Market Price Return S&P 500 Index
1 Month 11.75 11.59 -8.23
3 Months 12.70 12.56 -5.50
YTD 21.08 20.64 -8.27
1 Year 12.66 12.47 8.19
Since Inception (7/10/2018, Annualized) 6.31 6.22 5.54

As of 12/31/2019

  NAV Market Price Return S&P 500 Index
1 Month -6.92 -6.69 3.02
3 Months -12.24 -12.04 9.07
YTD -25.26 -25.18 31.49
1 Year -25.26 -25.18 31.49
Since Inception (7/10/2018, Annualized) -8.71 -8.49 12.56

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 3/31/2020

Date Account Symbol Stock Ticker Security Number Security Shares Price Market Value Weight % Asset Group
03/31/2020 DWSH GRUB 400110102 GRUBHUB INC -46,854.00 40.73 -1,908,363.42 -1.96% S 1
EQT 26884L109 EQT CORP -244,911.00 7.07 -1,731,520.77 -1.78% S
NKTR 640268108 NEKTAR THERAPEUTICS -83,059.00 17.85 -1,482,603.15 -1.53% S
FFIV 315616102 F5 NETWORKS INC -13,831.00 106.63 -1,474,799.53 -1.52% S
TWOU 90214J101 2U INC -65,920.00 21.22 -1,398,822.40 -1.44% S
QRTEA 74915M100 QURATE RETAIL INC-SERIES A -223,274.00 6.11 -1,363,087.77 -1.40% S
BERY 08579W103 BERRY GLOBAL GROUP INC -39,543.00 33.71 -1,332,994.53 -1.37% S
LOPE 38526M106 GRAND CANYON EDUCATION INC -17,169.00 76.29 -1,309,737.17 -1.35% S
SERV 81761R109 SERVICEMASTER GLOBAL HOLDING -48,377.00 27.00 -1,306,179.00 -1.34% S
KHC 500754106 KRAFT HEINZ CO/THE -52,771.00 24.74 -1,305,554.54 -1.34% S
NFG 636180101 NATIONAL FUEL GAS CO -34,010.00 37.29 -1,268,232.90 -1.31% S
ALXN 15351109 ALEXION PHARMACEUTICALS INC -14,005.00 89.79 -1,257,508.95 -1.29% S
COMM 20337X109 COMMSCOPE HOLDING CO INC -137,966.00 9.11 -1,256,870.26 -1.29% S
HFC 436106108 HOLLYFRONTIER CORP -50,219.00 24.51 -1,230,867.69 -1.27% S
NUS 67018T105 NU SKIN ENTERPRISES INC - A -56,330.00 21.85 -1,230,810.50 -1.27% S
VIAC 92556H206 VIACOMCBS INC - CLASS B -87,740.00 14.01 -1,229,237.40 -1.27% S
ALKS G01767105 ALKERMES PLC -84,799.00 14.42 -1,222,801.58 -1.26% FS
FDX 31428X106 FEDEX CORP -9,829.00 121.26 -1,191,864.54 -1.23% S
MYL N59465109 MYLAN NV -79,689.00 14.91 -1,188,162.99 -1.22% FS
SEE 81211K100 SEALED AIR CORP -47,106.00 24.71 -1,163,989.26 -1.20% S
ABMD 3654100 ABIOMED INC -7,944.00 145.16 -1,153,151.04 -1.19% S
FIZZ 635017106 NATIONAL BEVERAGE CORP -26,399.00 42.65 -1,125,917.35 -1.16% S
TDC 88076W103 TERADATA CORP -54,106.00 20.49 -1,108,631.94 -1.14% S
AMG 8252108 AFFILIATED MANAGERS GROUP -18,666.00 59.14 -1,103,907.24 -1.14% S
NUE 670346105 NUCOR CORP -30,507.00 36.02 -1,098,862.14 -1.13% S
UGI 902681105 UGI CORP -40,454.00 26.67 -1,078,908.18 -1.11% S
MHK 608190104 MOHAWK INDUSTRIES INC -14,019.00 76.24 -1,068,808.56 -1.10% S
R 783549108 RYDER SYSTEM INC -39,227.00 26.44 -1,037,161.88 -1.07% S
BEN 354613101 FRANKLIN RESOURCES INC -61,388.00 16.69 -1,024,565.72 -1.05% S
SVC 81761L102 SERVICE PROPERTIES TRUST -187,647.00 5.40 -1,013,293.80 -1.04% S
VSAT 92552V100 VIASAT INC -28,152.00 35.92 -1,011,219.84 -1.04% S
OI 67098H104 O-I GLASS INC -141,762.00 7.11 -1,007,927.82 -1.04% S
VST 92840M102 VISTRA ENERGY CORP -62,997.00 15.96 -1,005,432.12 -1.03% S
TRIP 896945201 TRIPADVISOR INC -57,714.00 17.39 -1,003,646.46 -1.03% S
W 94419L101 WAYFAIR INC- CLASS A -18,713.00 53.44 -1,000,022.72 -1.03% S
PVH 693656100 PVH CORP -26,083.00 37.64 -981,764.12 -1.01% S
SABR 78573M104 SABRE CORP -165,207.00 5.93 -979,677.51 -1.01% S
KMT 489170100 KENNAMETAL INC -52,524.00 18.62 -977,996.88 -1.01% S
FANG 25278X109 DIAMONDBACK ENERGY INC -37,326.00 26.20 -977,941.20 -1.01% S
WTFC 97650W108 WINTRUST FINANCIAL CORP -29,469.00 32.86 -968,351.34 -1.00% S
WLK 960413102 WESTLAKE CHEMICAL CORP -25,359.00 38.17 -967,953.03 -1.00% S
UA 904311206 UNDER ARMOUR INC-CLASS C -119,682.00 8.06 -964,636.92 -0.99% S
EVR 29977A105 EVERCORE INC - A -20,833.00 46.06 -959,567.98 -0.99% S
CXO 20605P101 CONCHO RESOURCES INC -22,360.00 42.85 -958,126.00 -0.99% S
OXY 674599105 OCCIDENTAL PETROLEUM CORP -80,560.00 11.58 -932,884.80 -0.96% S
DXC 23355L106 DXC TECHNOLOGY CO -71,441.00 13.05 -932,305.05 -0.96% S
CLB N22717107 CORE LABORATORIES N.V. -89,710.00 10.34 -927,601.40 -0.95% FS
XEC 171798101 CIMAREX ENERGY CO -54,029.00 16.83 -909,308.07 -0.94% S
EXPE 30212P303 EXPEDIA GROUP INC -16,136.00 56.27 -907,972.72 -0.93% S
TXT 883203101 TEXTRON INC -33,909.00 26.67 -904,353.03 -0.93% S
SLB 806857108 SCHLUMBERGER LTD -67,025.00 13.49 -904,167.25 -0.93% FS
VTR 92276F100 VENTAS INC -33,571.00 26.80 -899,702.80 -0.93% S
MRO 565849106 MARATHON OIL CORP -272,614.00 3.29 -896,900.06 -0.92% S
KSS 500255104 KOHLS CORP -60,585.00 14.59 -883,935.15 -0.91% S
CMA 200340107 COMERICA INC -30,018.00 29.34 -880,728.12 -0.91% S
FL 344849104 FOOT LOCKER INC -38,903.00 22.05 -857,811.15 -0.88% S
CNK 17243V102 CINEMARK HOLDINGS INC -84,169.00 10.19 -857,682.11 -0.88% S
PE 701877102 PARSLEY ENERGY INC-CLASS A -149,273.00 5.73 -855,334.29 -0.88% S
RIG H8817H100 TRANSOCEAN LTD -734,340.00 1.16 -851,834.40 -0.88% FS
UNM 91529Y106 UNUM GROUP -55,133.00 15.01 -827,546.33 -0.85% S
IVZ G491BT108 INVESCO LTD -90,927.00 9.08 -825,617.16 -0.85% FS
CC 163851108 CHEMOURS CO/THE -92,303.00 8.87 -818,727.61 -0.84% S
CCL 143658300 CARNIVAL CORP -61,564.00 13.17 -810,797.88 -0.83% FS
AVT 53807103 AVNET INC -32,272.00 25.10 -810,027.20 -0.83% S
M 55616P104 MACY'S INC -164,700.00 4.91 -808,677.00 -0.83% S
HBI 410345102 HANESBRANDS INC -101,961.00 7.87 -802,433.07 -0.83% S
BLUE 09609G100 BLUEBIRD BIO INC -17,444.00 45.96 -801,726.24 -0.83% S
FLR 343412102 FLUOR CORP -115,662.00 6.91 -799,224.42 -0.82% S
CMD 138098108 CANTEL MEDICAL CORP -21,839.00 35.90 -784,020.10 -0.81% S
MAC 554382101 MACERICH CO/THE -138,485.00 5.63 -779,670.55 -0.80% S
DD 26614N102 DUPONT DE NEMOURS INC -22,486.00 34.10 -766,772.60 -0.79% S
HAL 406216101 HALLIBURTON CO -110,583.00 6.85 -757,493.55 -0.78% S
BTU 704551100 PEABODY ENERGY CORP -259,692.00 2.90 -753,106.80 -0.78% S
OLN 680665205 OLIN CORP -64,108.00 11.67 -748,140.36 -0.77% S
NBL 655044105 NOBLE ENERGY INC -123,468.00 6.04 -745,746.72 -0.77% S
AR 03674X106 ANTERO RESOURCES CORP -1,038,019.00 0.71 -740,003.75 -0.76% S
BKR 05722G100 BAKER HUGHES CO -70,014.00 10.50 -735,147.00 -0.76% S
X 912909108 UNITED STATES STEEL CORP -114,617.00 6.31 -723,233.27 -0.74% S
SIX 83001A102 SIX FLAGS ENTERTAINMENT CORP -57,396.00 12.54 -719,745.84 -0.74% S
AAL 02376R102 AMERICAN AIRLINES GROUP INC -57,434.00 12.19 -700,120.46 -0.72% S
ADS 18581108 ALLIANCE DATA SYSTEMS CORP -20,474.00 33.65 -688,950.10 -0.71% S
MIDD 596278101 MIDDLEBY CORP -11,947.00 56.88 -679,545.36 -0.70% S
MD 58502B106 MEDNAX INC -57,856.00 11.64 -673,443.84 -0.69% S
SAGE 78667J108 SAGE THERAPEUTICS INC -23,405.00 28.72 -672,191.60 -0.69% S
GT 382550101 GOODYEAR TIRE & RUBBER CO -112,103.00 5.82 -652,439.46 -0.67% S
SPG 828806109 SIMON PROPERTY GROUP INC -11,792.00 54.86 -646,909.12 -0.67% S
TEX 880779103 TEREX CORP -44,945.00 14.36 -645,410.20 -0.66% S
DHC 25525P107 DIVERSIFIED HEALTHCARE TRUST -168,896.00 3.63 -613,092.48 -0.63% S
SPR 848574109 SPIRIT AEROSYSTEMS HOLD-CL A -25,186.00 23.93 -602,700.98 -0.62% S
AA 13872106 ALCOA CORP -97,391.00 6.16 -599,928.56 -0.62% S
RES 749660106 RPC INC -288,436.00 2.06 -594,178.16 -0.61% S
PTEN 703481101 PATTERSON-UTI ENERGY INC -228,226.00 2.35 -536,331.10 -0.55% S
MOS 61945C103 MOSAIC CO/THE -49,294.00 10.82 -533,361.08 -0.55% S
HP 423452101 HELMERICH & PAYNE -33,427.00 15.65 -523,132.55 -0.54% S
TPR 876030107 TAPESTRY INC -39,826.00 12.95 -515,746.70 -0.53% S
GPS 364760108 GAP INC/THE -68,182.00 7.04 -480,001.28 -0.49% S
MIK 59408Q106 MICHAELS COS INC/THE -259,608.00 1.62 -420,564.96 -0.43% S
CLR 212015101 CONTINENTAL RESOURCES INC/OK -54,731.00 7.64 -418,144.84 -0.43% S
NOV 637071101 NATIONAL OILWELL VARCO INC -40,847.00 9.83 -401,526.01 -0.41% S
TCBI 88224Q107 TEXAS CAPITAL BANCSHARES INC -7,673.00 22.17 -170,110.41 -0.18% S
HOLD 00768Y651 ADVISORSHARES SAGE CORE RESE 175,000.00 96.31 16,853,375.00 17.35% MF
X9USDISLQ INVESCO GOVT AGENCY INSTL 1901 52,905,891.33 1 52,905,891.33 54.45% MM
CASH 119,557,255.56 100 119,557,255.56 123.06% 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

Characteristics

As of 2/29/2020

DWSH Sector Change

DWSH Sector Allocation

DWSH Market Cap

FUND

Fees & Expenses

Management Fee 0.75%
Other Expenses 2.51%
Acquired Fund Fees 0.11%
Gross Expenses Ratio 3.37%
Fee Waiver and/or Expense Reimbursement -0.30%
Net Expense Ratio 3.07%

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

Ex-Date Record Date Pay Date Cash Div ST Cap Gain LT Cap Gain Return of Capital Total Distribution (per share) DWSH
12/24/2020 12/28/2020 12/31/2020 - - - - - FORMULA
12/27/2019 12/30/2019 12/31/2019 $0.03087 $0.00000 $0.00000 $0.00000 $0.03087 VALUE
12/27/2018 12/28/2018 12/31/2018 $0.03611 $0.00000 $0.00000 $0.00000 $0.0361 VALUE
VALUE
VALUE
VALUE
VALUE
VALUE
VALUE
VALUE
VALUE
VALUE
VALUE
VALUE
VALUE
VALUE
VALUE
VALUE
VALUE
VALUE
VALUE
VALUE
VALUE
VALUE
VALUE
VALUE
VALUE
VALUE
VALUE
VALUE
VALUE
VALUE
VALUE
VALUE
VALUE
VALUE
VALUE
VALUE
VALUE
VALUE
VALUE
VALUE
VALUE
VALUE
VALUE
VALUE
VALUE
VALUE
VALUE
VALUE
VALUE
VALUE
VALUE
VALUE
VALUE
VALUE
VALUE
VALUE
    • 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.