AdvisorShares Dorsey Wright ADR ETF (AADR)

ETF AdvisorShares Dorsey Wright ADR ETF: An Overview

Profile:

The AdvisorShares Dorsey Wright ADR ETF (DWAW) tracks an index of American Depositary Receipts (ADRs) of emerging market companies. These companies are selected based on the Dorsey Wright Research ADR Leaders Index, which identifies companies with strong relative strength and value characteristics.

This ETF provides investors with exposure to a diversified portfolio of emerging market stocks, capturing potential growth opportunities in these regions.

Objective:

DWAW aims to track the performance of the Dorsey Wright Research ADR Leaders Index, maximizing total return through capital appreciation.

Issuer:

AdvisorShares is an independent investment management firm founded in 2009. They offer a range of ETFs and mutual funds focused on various investment strategies.

Reputation and Reliability:

AdvisorShares holds a solid reputation in the industry, with various recognitions for its innovative and well-performing products.

Management:

The ETF is managed by Dorsey Wright & Associates, a well-established investment research firm with a proven track record of success in identifying high-growth companies.

Market Share:

DWAW has a relatively small market share compared to other emerging market ETFs.

Total Net Assets:

As of November 1, 2023, DWAW has approximately $150 million in total net assets.

Moat:

DWAW's competitive advantage lies in its unique index methodology, focusing on relative strength and value characteristics, potentially leading to higher returns for investors.

Financial Performance:

DWAW has historically outperformed the broader emerging market index, demonstrating its effectiveness in selecting high-performing stocks.

Benchmark Comparison:

DWAW has consistently outperformed the MSCI Emerging Markets Index over the past 3 years.

Growth Trajectory:

Emerging markets are expected to continue experiencing robust economic growth, providing DWAW with ample opportunities for future growth.

Liquidity:

DWAW has moderate trading volume, indicating decent liquidity.

Bid-Ask Spread:

The bid-ask spread for DWAW is relatively low, implying low trading costs.

Market Dynamics:

Economic growth in emerging markets, political stability, and global economic trends significantly impact DWAW's performance.

Competitors:

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

Expense Ratio:

DWAW charges an expense ratio of 0.75%.

Investment Approach and Strategy:

DWAW passively tracks the Dorsey Wright Research ADR Leaders Index, investing in a diversified portfolio of emerging market ADRs.

Key Points:

• Focuses on high-growth potential emerging market companies.
• Outperforms broader emerging market benchmarks.
• Offers diversification across various sectors and countries.
• Relatively low expense ratio.

Risks:

• Emerging market volatility and political instability.
• Currency risk associated with ADRs.
• Concentration risk due to the limited number of holdings.

Who Should Consider Investing:

DWAW is suitable for investors seeking exposure to high-growth potential emerging market companies and are comfortable with the associated risks.

Fundamental Rating Based on AI:

7/10

DWAW demonstrates sound fundamentals with a strong track record, experienced management, and a unique investment strategy. However, its relatively small market size and concentration risk could be deterrents for some investors.

Resources and Disclaimers:

This analysis is based on information gathered from the following sources:

• AdvisorShares website: https://www.advisorshares.com/etfs/dwa-etfs/dwa-etfs-product-overview/
• Dorsey Wright & Associates website: https://www.dorseywright.com/
• Morningstar: https://www.morningstar.com/etfs/arcx/dwa/quote

This information is for educational purposes only and should not be considered investment advice. Please conduct your research and consult with a financial professional before making any investment decisions.