DWUS: 2nd Quarter 2023 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) uses relative strength strength to allocate towards the strongest performing areas of the Large-Cap US space using broad market and factor ETFs. The strategy implements Dorsey Wright’s proprietary fund scoring method that is built around relative strength and momentum.  The top two ranked funds at each seasonal quarterly evaluation are selected as the holdings.  The strategy is not constrained to holding a set allocation to any sector, style, cap, or factor. This allows the portfolio to over or underweight markets to concentrate on areas of strength in the Large-Cap US market, often pushing the portfolio to vary from a standard broad market benchmark.

Performance

DWUS made a shift towards growth in May which was favorable for the rest of the quarter. The fund was able to beat its benchmark, the S&P 500 Index, by 0.79% during the second quarter of 2023 — DWUS gained 9.53% (market) while the S&P 500 gained 8.74%.

Holdings

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 now has adjusted by picking up the Invesco QQQ Trust. Its next evaluation period will be at the beginning of August which may bring in more changes.

Ticker Security Description Portfolio Weight %
QQQ INVESCO QQQ TRUST SERIES 1 52.00%
RSP INVESCO S&P 500 EQUAL WEIGHT 47.21%

As of 06.30.2023. Cash not included.

Top Underlying Stock Exposure

 Security Description Ticker Portfolio Weight %
Microsoft Corporation MSFT 6.74%
Apple Inc. AAPL 6.57%
NVIDIA Corporation NVDA 3.67%
Amazon.com, Inc. AMZN 3.62%
Tesla, Inc. TSLA 2.29%
Meta Platforms Inc. Class A META 2.27%
Alphabet Inc. Class A GOOGL 1.96%
Alphabet Inc. Class C GOOG 1.91%
Broadcom Inc. AVGO 1.34%
PepsiCo, Inc. PEP 0.97%

As of 06.30.2023. 

Sector Allocation

Given the changes in May, DWUS has a significantly different sector exposure than before. Sectors like utilities and consumer staples now take up much less allocation while information technology picked up more exposure. Technology now makes up more than 30% of the underlying sector exposure which is followed by consumer discretionary at 13%. Materials, energy, real estate, and utilities each now have less than 5% exposure.

As of 06.30.2023.

Respectfully,

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

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, 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.