DWUS: 3rd Quarter 2026 Portfolio Review

Performance data quoted represents past performance and is no guarantee of future results. 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. For the fund’s most recent standardized and month-end performance, please click www.advisorshares.com/etfs/dwus.

Strategy

The AdvisorShares Dorsey Wright FSM US Core ETF’s (DWUS) looks to rotate among a broad inventory of large cap US equity representatives, seeking to hold the strongest two areas following each evaluation. The strategy utilizes the Dorsey Wright Fund Score Methodology (FSM), which incorporates multiple trend and relative strength characteristics to arrive at a concise technical score for each fund included in the strategy inventory. This inventory is ranked by fund score on a set, monthly cadence. At each evaluation, the strategy then looks to hold two of the top scoring funds. A position is sold if it falls sufficiently out of favor with the other inventory members, at which point the next highest scoring fund is purchased. This strategy also has the potential to move defensively in times of intense market turbulence according to technical risk triggers, which are evaluated daily. This strategy is meant to act as a core portfolio allocation toward US equities, giving the broader portfolio the ability to maintain exposure toward the strongest areas of US equity markets while avoiding the weakest areas.

Performance

The US equity market saw notable rotation in the third quarter of the year, leading to underperformance from DWUS as it returned -7.27% at net asset value (NAV) and -7.42% (market) from 6/30/2026 through 9/30/2026 compared to the 2.30% return for the S&P 500 Index over the same timeframe. The broader weakness was reflected in the portfolio’s transition to a defensive posture in September. The portfolio is underperforming the performance of the benchmark year-to-date at a return of 8.69% (NAV) and 8.77% (market) compared to 12.75% for the S&P 500 Index.

Holdings

The portfolio saw three trades during the third quarter. The first occurred in early August, as the portfolio sold exposure toward Momentum (MTUM) and purchased Quality (QUAL). The second trade occurred at the beginning of September, as the portfolio sold exposure toward the Nasdaq-100 (QQQM) and purchased the S&P 500 Index (SPYM). The third change occurred in mid-September, as the defensive trigger led the portfolio to move half of the exposure to short-term treasuries (SHV) as our risk-off representation in the strategy. The portfolio is capped at 50% exposure to our defensive representative, with the remaining exposure maintained in the large cap equity areas in focus. Our defensive trigger is evaluated daily and will look to move the portfolio back to a fully invested posture if the risk environment improves.

Ticker Security Description Portfolio Weight %
SHV ISHARES 0-1 YEAR TREASURY BOND 49.38%
QUAL ISHARES MSCI USA QUALITY FAC 25.30%
SPYM STE STR SPDR PT S&P 500 ETF 25.13%

As of 09.30.2026. Cash not included. Holdings are subject to change.

Respectfully,

Nasdaq Dorsey Wright
AdvisorShares Dorsey Wright FSM US Core ETF (DWUS) Portfolio Model Manager

 

Past Commentary

2Q 2026 Portfolio Commentary
Definition:

The S&P 500 Index is a broad-based, unmanaged measurement of changes in stock market conditions based on the average of 500 widely held common stocks.

Before investing you should carefully consider the Fund’s investment objectives, risks, charges and expenses. This and other information is in the prospectus or summary prospectus, a copy of which may be obtained by visiting 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 (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.

Holdings and allocations are subject to risks and to change. The views in this commentary are those of the portfolio manager and may not reflect his views on the date this material is distributed or anytime thereafter. These views are intended to assist shareholders in understanding their investments and do not constitute investment advice.

Contact Info

[email protected]
1.877.843.3831

Location

AdvisorShares Investments, LLC
4800 Montgomery Lane,
Suite 150
Bethesda, Maryland 20814

ETF Symbols

AADR, CWS, DWAW, DWSH, DWUS, GK, HDGE, HVAC, LOOK, MSOS, MSOX, PSIL, QPX, SURE, VEGA, YOLO

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