(DWUS) DORSEY WRIGHT FSM US CORE ETF

DWUS

Overview

“What part of the U.S. large cap market should be owned?” Having a solution for core U.S. equity exposure is crucial to meeting investing goals, as well as, to harnessing the momentum in today’s market. The AdvisorShares Dorsey Wright FSM U.S. Core ETF (Ticker: DWUS) employs an investment strategy designed to answer this question, offering domestic large cap equity exposure through various market-oriented styles and factors within the tax-efficient structure of an ETF.

Using Nasdaq Dorsey Wright’s (Dorsey Wright) proprietary research and Fund Score Method (FSM) framework, DWUS tactically allocates its portfolio to those funds in the FSM Core Solution U.S. Core Strategy (FSM U.S. Core) with the highest FSM rankings. DWUS will continue to hold onto those portfolio positions so long as they maintain the strongest FSM rankings at the time of DWUS’s quarterly rebalancing. FSM rankings are derived using three main areas of evaluation: trend analysis, market relative strength, and peer relative strength. By using Dorsey Wright’s FSM ranking and modeling framework in its investment strategy, DWUS provides an objective, rules-based approach to large cap core equity investing. DWUS 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, DWUS will reassess the strategy’s momentum indicators so it may move back into equity exposure once broad equity strength is displayed.

 

Symbol Exchange Inception Date CUSIP Indicative Value
DWUS Nasdaq 12/26/2019 00768Y487 DWUS.IV
<strong>Why Invest in DWUS?</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. DWUS seeks to add alpha using Dorsey Wright’s historically successful trend following process and investment modeling that looks to identify the strongest U.S. large cap equity investments from the weaker performers.
  • Active Management Advantage – Many ETFs passively invest owning the majority of the stocks represented in their benchmark index, including those with less than attractive investing attributes. DWUS’s investment process systematically screens the FSM U.S. Core large cap equity universe for investments to include or remove from its highly tactical, active portfolio.
  • U.S. Core Equity Rotation – Owning or even avoiding certain large cap investing styles – equal weight, Nasdaq 100, low volatility, momentum, broad based – is an important determinant of domestic core equity success. Investment styles rotate in and out of season. Sometimes those trends last for years, other times for months. By investing in the highest FSM ranked funds, DWUS seeks to capture the growth of those large cap equity styles demonstrating the strongest relative strength while avoiding the weakest.
  • Systematic Defense – Because we believe avoiding severe losses helps to preserve capital and can contribute to good performance over time, DWUS 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 DWUS Fit in a Traditional Portfolio?</strong>

DWUS 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. Targeted High Conviction Large Cap Exposure – By tactically allocating to the top ranked large cap equity funds based on Dorsey Wright’s FSM ranking and modeling, DWUS seeks to identify and benefit from factor or market based themes within the core U.S. market. DWUS will regularly rebalance on an equal weight basis into the most favorably identified funds within FSM U.S. Core investment universe.
  2. Relative Strength Analysis – DWUS invests using relative strength, via FSM rankings, which compares price performance within a universe of stocks. Relative strength investing provides a repeatable process to identify and select the leaders while avoiding the laggards. It is important to be equally good at identifying both long-term winners and losers.
  3. Systematic Approach – DWUS’s investment strategy is entirely systematic and is designed to remove human emotion from the decision process. It is a disciplined, repeatable process to systematically identify and select which funds to own, as well as, which to avoid or sell, giving the portfolio manager the ability to continually execute DWUS’s investment strategy through all types of different market environments.
  4. Tactical Defensive Investing– When the market is demonstrating overall weakness, DWUS 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.

Dan Ahrens
Dan Ahrens is managing director and chief operating officer of AdvisorShares, and also portfolio manager of the AdvisorShares Vice ETF (Ticker: ACT). Dan carries over two decades of experience in the financial services industry serving in a variety of senior-level capacities. He founded Ahrens Advisors, L.P., an SEC-registered investment advisor, where he was portfolio manager of the Ladenburg Thalmann Gaming and Casino Fund. Dan also served as president of the MUTUALS.com Funds, where he launched the Vice Fund (VICEX) and served as its original portfolio manager. He was also the portfolio manager of the Generation Wave Growth Fund (GWGFX). During that time, he was also president and chief compliance officer of Mutuals Advisors, Inc, and acted as president, treasurer and financial & operations officer of an affiliated broker dealer firm. Dan is the author of “Investing in Vice” (St. Martin’s Press, 2004) and has appeared prominently across financial media outlets and major national and trade publications. He earned a Bachelor in Business Administration in Finance from Texas Tech University.

Fund

Price History

As of 8/14/2020

NAV $30.03 Closing Price $30.01
Change $-0.03 Close Change $4.37
Shares Outstanding 1,725,000 Volume 334
4PM Bid/Offer Midpoint $30.01 Premium Discount $-0.02
Assets Under Management $51,804,189.56    

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 7/31/2020

  NAV Market Price Return S&P 500 Index
1 Month 7.06 7.10 5.64
3 Months 19.54 19.26 12.87
YTD 17.15 16.89 2.38
Since Inception (12/26/2019, Annualized) 17.16 16.98 0.00

As of 12/31/2019

NAV Market Price Return S&P 500 Index
1 Month  –
YTD
Since Inception (12/26/2019, Annualized)

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 8/14/2020

Date Account Symbol Stock Ticker Security Number Security Description Shares/Par (Full) Price (Base) Traded Market Value (Base) Portfolio Weight % Asset Group
08/14/2020 DWUS QQQ 46090E103 INVESCO QQQ TRUST SERIES 1 95,564.00 272.16 26,008,698.24 50.21% MF
MTUM 46432F396 ISHARES EDGE MSCI USA MOMENT 181,167.00 142.45 25,807,239.15 49.82% MF
X9USDBLYT BLACKROCK TREASURY TRUST INSTL 62 42,527.05 1.00 42,527.05 0.08% MM
CASH (57,052.24) 100.00 0.00 -0.11% 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 5/31/2020

DWUS Sector Allocation

DWUS Market Cap

FUND

Fees & Expenses

Management Fee 0.75%
Other Expenses 0.24%
Acquired Fund Fees and Expenses* 0.15%
Expense Ratio 1.14%

 

 

 

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) DWUS
12/23/2020 12/28/2020 12/31/2020 - - - - - FORMULA
  • 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 securities market as a whole. The market value of debt securities held by the Fund typically changes as interest rates change, as demand for the instruments changes, and as actual or perceived creditworthiness of an issuer changes.

    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.

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