QPX: 3rd Quarter 2023 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, QPX will have long equity exposure; when the QIX is higher but at intermediary levels, QPX moves to a balanced equity / fixed income portfolio, finally when QIX is at its highest levels, QPX moves to a defensive allocation.
For the third quarter of 2023, 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 models.
During the third quarter, the QIX stayed below the Risk Level 2 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||21.22%|
|XLK||TECHNOLOGY SELECT SECT SPDR||20.32%|
|XLP||CONSUMER STAPLES SPDR||18.30%|
|XLI||INDUSTRIAL SELECT SECT SPDR||12.21%|
|IJR||ISHARES CORE S&P SMALL-CAP E||10.73%|
|XLV||HEALTH CARE SELECT SECTOR||10.19%|
|XLC||COMM SERV SELECT SECTOR SPDR||4.69%|
As of 09.30.2023. Cash not included. Subject to change.
AdvisorShares Q Dynamic Growth ETF (QPX) Portfolio Strategist