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
AdvisorShares Dorsey Wright FSM US Core ETF (DWUS) Portfolio Strategist