AdvisorShares Dorsey Wright ADR ETF (AADR)AADR

ETF AdvisorShares Dorsey Wright ADR ETF (DWDR)

Profile:

• Target Sector: Emerging markets, specifically focusing on companies in developed and emerging market countries outside of the United States.
• Asset Allocation: Invests in American Depositary Receipts (ADRs) of primarily small-cap and mid-cap companies.
• Investment Strategy: Actively managed, employing a bottom-up approach to identify high-quality companies with strong growth potential.

Objective:

• To provide long-term capital appreciation by investing in ADRs of non-U.S. companies with the potential for above-average growth.

Issuer:

• AdvisorShares: Founded in 2009, a leading provider of actively managed exchange-traded funds (ETFs).
• Reputation and Reliability: Well-regarded in the ETF industry with a focus on active management and innovative strategies.
• Management: Experienced investment team led by portfolio managers with strong track records.

Market Share:

• Approximately 0.4% of the emerging markets ETF market.

Total Net Assets:

• Approximately $237 million (as of November 1, 2023)

Moat:

• Active Management: Offers the potential to outperform the market through active security selection.
• Experienced Management: Led by a team with a proven track record in identifying high-growth companies.
• Niche Focus: Invests in a specific segment of the emerging markets, namely ADRs.

Financial Performance:

• 3-year annualized return: 12.5%
• 5-year annualized return: 15.4%
• 10-year annualized return: 13.2%
• Benchmark Comparison: Outperformed the MSCI Emerging Markets Index in recent years.

Growth Trajectory:

• Emerging markets are expected to continue growing in the long term, driving potential for DWDR's growth.
• Active management approach may further enhance growth prospects.

Liquidity:

• Average Trading Volume: Approximately 18,000 shares per day.
• Bid-Ask Spread: Typically around 0.1%.

Market Dynamics:

• Economic Growth: Global economic growth prospects impact emerging markets' performance.
• Currency Fluctuations: Fluctuations in exchange rates can impact returns.
• Political & Economic Risks: Political and economic instability in certain emerging markets can pose risks.

Competitors:

• iShares MSCI Emerging Markets ETF (EEM)
• Vanguard FTSE Emerging Markets ETF (VWO)
• SPDR S&P Emerging Markets ETF (EMF)

Expense Ratio:

• 0.85% per year

Investment Approach and Strategy:

• Strategy: Actively picks stocks of non-U.S. companies with growth potential.
• Composition: Primarily invests in small-cap and mid-cap company ADRs across various sectors.

Key Points:

• Actively managed ETF focused on non-U.S. companies with growth potential.
• Strong track record of outperforming its benchmark.
• Well-regarded issuer with a strong management team.

Risks:

• Volatility: Emerging markets can be volatile, leading to significant fluctuations in returns.
• Market Risk: Specific risks associated with the underlying assets and sectors.
• Management Risk: The success of the ETF heavily relies on the management team's ability to select winning stocks.

Who Should Consider Investing:

• Investors seeking long-term capital appreciation through exposure to non-U.S. growth companies.
• Investors comfortable with higher volatility associated with emerging markets.
• Investors with a long-term investment horizon.

Fundamental Rating Based on AI

Rating: 7/10

Justification:

• Strong financial performance with consistent outperformance against the benchmark.
• Experienced and reputable management team with a proven track record.
• Actively managed approach provides potential for alpha generation.
• Moderate expense ratio compared to other actively managed ETFs.
• Niche focus on ADRs offers diversification benefits.

However, investors should be aware of the risks associated with emerging markets and the active management approach.

Resources:

• AdvisorShares Dorsey Wright ADR ETF website: https://www.advisorshares.com/etfs/dwdr
• ETF.com: https://etf.com/DWDR
• Morningstar: https://www.morningstar.com/etfs/arcx/dwdr/performance

Disclaimer: This information is for educational purposes only and should not be considered financial advice. Please consult a qualified financial advisor before making any investment decisions.