DWUS: 2nd Quarter 2022 Portfolio Review
Performance & Holdings
DWUS made a shift in May away from growth and into low volatility. The fund now has a more defensive posture than it did entering the year. However, the more defensive tilt in May hasn’t been able to help the fund make up lost ground as it underperformed versus its benchmark, the S&P 500 Index, by 1% year to date. On a positive note, since the beginning of May, DWUS has outpaced the S&P 500 by 1.38%, so the defensive shift has made an impact through the end of the second quarter.
The portfolio continues to be allocated to securities that we believe to display favorable relative strength characteristics. The portfolio is made up of two ETFs, both of which have shown high relative strength versus the broad market. Growth areas in the market have picked up momentum over the last couple of months and the portfolio remains in growth. Its next evaluation period will be at the beginning of February, in which some changes may occur.
|Ticker||Security Description||Portfolio Weight %|
|RSP||INVESCO S&P 500 EQUAL WEIGHT ETF||50.18%|
|SPLV||INVESCO S&P 500 LOW VOLATILITY ETF||49.77%|
Top Underlying Stock Exposure
|Security Description||Ticker||Portfolio Weight %|
|Johnson & Johnson||JNJ||0.75%|
|Realty Income Corporation||O||0.68%|
|Gilead Sciences, Inc.||GILD||0.68%|
|Mondelez International, Inc. Class A||MDLZ||0.68%|
|Procter & Gamble Company||PG||0.68%|
As of 06.30.2022. Cash not included.
The recent changes in DWUS have led to some major changes in underlying sector exposure. Utilities are now the highest weighted sector with 15.78% of the underlying exposure which is followed by consumer staples at 14.19%. Financials, industrials, health care, and information technology are all hovering around 10% of the sector exposure for DWUS. Communication services, energy, and materials are the three underweighted sectors with each possessing less than 5% of the total sector exposure. The overweight sectors in DWUS highlight the more defensive nature of the underlying holdings entering Q3.
As of 06.30.2022.
Nasdaq Dorsey Wright, Portfolio Model Manger
AdvisorShares Dorsey Wright FSM US Core ETF (DWUS)
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 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.