DWUS: 3rd Quarter 2022 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 & 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 and maintained this exposure through the end of the third quarter. Looking at performance, DWUS underperformed the S&P 500 Index by 0.18% (market) in the third quarter.

​Top Holding(s)

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 %
SPLV INVESCO S&P 500 LOW VOLATILITY ETF 50.51%
RSP INVESCO S&P 500 EQUAL WEIGHT ETF 48.84%

Top Underlying Stock Exposure

 Security Description Ticker Portfolio Weight %
Johnson & Johnson JNJ 0.80%
PepsiCo, Inc. PEP 0.74%
Bristol-Myers Squibb Company BMY 0.73%
Gilead Sciences, Inc. GILD 0.73%
Hershey Company HSY 0.71%
Berkshire Hathaway Inc. Class B BRK.B 0.69%
Constellation Brands, Inc. Class A STZ 0.66%
General Mills, Inc. GIS 0.66%
Waste Management, Inc. WM 0.66%
Kellogg Company K 0.66%

As of 09.30.2022. Cash not included.

Sector Allocation

Utilities remain the highest weighted sector with 15.78% of the underlying exposure which is followed by healthcare at 13.67%. Financials, industrials, and consumer staples are all hovering around 12% 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 Q4.

As of 09.30.2022.

Respectfully,

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

 

Past Commentary


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.