QPX: 3rd Quarter 2022 Portfolio Review
The AdvisorShares Q Dynamic Growth ETF (QPX) seeks to target equity market upside while tactically managing downside risk during abnormal market volatility. Using ETFs, QPX may invest in a broad variety of equities across market cap, style or sectors and will use various fixed income categories and commodities to manage risk. Normally, QPX seeks to provide broad-market equity-like returns. However, during periods of high market volatility, QPX can allocate to a more defensive portfolio and seek short-term fixed income returns.
QPX’s market volatility indicator, the proprietary Q Implied Volatility Index™ (QIX), is reviewed daily and will determine certain allocation changes. When the QIX indicates normal volatility (below 37.5), QPX will have long equity exposure; when the QIX is high (37.5 or higher), QPX moves to a defensive fixed income portfolio.
For the third quarter of 2022, QPX finished behind its benchmark, the S&P 500 Index.
QPX continued its heavy weighting in large-cap stocks and the technology sector throughout the period, as this exposure has a much higher risk/reward characteristics than other segments of the market (per the portfolio manager’s model).
During the third quarter, the QIX fluctuated in value between 18 and 29, staying well below the 37.5 volatility trigger. Therefore, there were no risk-off rebalancing allocation changes made in QPX during the period.
|Ticker||Security Description||Portfolio Weight %|
|QQQ||INVESCO QQQ TRUST SERIES 1||38.87%|
|XLK||TECHNOLOGY SELECT SECT SPDR||29.74%|
|IYW||iShares USTechnology ETF||16.82%|
|IWO||ISHARES RUSSELL 2000 GROWTH||4.05%|
|IJR||ISHARES CORE S&P SMALL-CAP E||3.78%|
|VNQ||VANGUARD REAL ESTATE ETF||3.21%|
|VTI||VANGUARD TOTAL STOCK MKT ETF||0.50%|
As of 09.30.2022. Cash not included.