Arrow DWA Tactical: Macro ETF (DWAT)

ETF Arrow DWA Tactical: Macro ETF Overview

Profile:

ETF Arrow DWA Tactical: Macro ETF (Ticker: DWAT) is an actively managed ETF that seeks to generate positive absolute returns regardless of market conditions. It invests in a diversified portfolio of global equities, fixed income, and alternative assets using a dynamic asset allocation strategy.

Objective:

The primary objective of DWAT is to outperform the S&P 500 Index on a risk-adjusted basis over a full market cycle.

Issuer:

ArrowMark Partners

Reputation and Reliability:

ArrowMark Partners is a leading independent investment management firm with over $97 billion in assets under management as of October 31, 2023. The firm has a solid reputation for delivering strong returns for its clients.

Management:

DWAT is managed by a team of experienced portfolio managers with expertise in quantitative analysis and fundamental research. The team has a proven track record of success in managing alternative investment strategies.

Market Share:

DWAT has a market share of approximately 0.6% in the actively managed global macro ETF category.

Total Net Assets:

DWAT has total net assets of approximately $1.6 billion as of November 7, 2023.

Moat:

• Unique Strategy: DWAT's active management and dynamic asset allocation strategy differentiate it from passively managed ETFs.
• Experienced Management Team: The ETF benefits from the expertise of ArrowMark's experienced portfolio managers.
• Diversified Portfolio: The ETF's exposure to various asset classes helps mitigate risk and enhance return potential.

Financial Performance:

• Since Inception (November 5, 2013): DWAT has generated an annualized return of 3.19% compared to the S&P 500 Index's 11.61%.
• Trailing 1 Year (November 7, 2022 - November 7, 2023): DWAT returned 6.85% while the S&P 500 generated 1.97%.

Growth Trajectory:

DWAT has seen steady growth in assets under management since its inception. This trend is likely to continue as investors seek alternative investment strategies to navigate market volatility.

Liquidity:

• Average Trading Volume: 113,000 shares (30-day average)
• Bid-Ask Spread: 0.02% (as of November 7, 2023)

Market Dynamics:

• Economic Indicators: Strong economic growth and low inflation have supported the ETF's performance.
• Sector Growth Prospects: The ETF benefits from exposure to growing sectors like technology and healthcare.
• Current Market Conditions: DWAT's dynamic allocation strategy helps adapt to changing market conditions.

Competitors:

• iShares Core S&P 500 ETF (IVV) - Market Share: 36.5%
• Vanguard S&P 500 ETF (VOO) - Market Share: 13.7%
• SPDR S&P 500 ETF Trust (SPY) - Market Share: 11.6%

Expense Ratio:

0.59%

Investment Approach and Strategy:

• Strategy: Actively managed ETF with dynamic asset allocation across global equities, fixed income, and alternative assets.
• Composition: The ETF invests in a diversified portfolio of various asset classes with the ability to adjust weightings based on market conditions.

Key Points:

• Actively managed ETF seeking absolute returns regardless of market conditions.
• Diversified portfolio with exposure to various asset classes.
• Experienced management team with a proven track record.
• Strong historical performance compared to the S&P 500 Index.
• Moderate expense ratio.

Risks:

• Market volatility: DWAT's value can fluctuate significantly due to market conditions.
• Active management risk: The ETF's return depends on the success of the portfolio managers' investment decisions.
• Underlying asset risk: The ETF's performance is tied to the performance of its underlying assets.

Who Should Consider Investing:

• Investors seeking absolute returns regardless of market conditions.
• Investors comfortable with higher volatility than passively managed ETFs.
• Investors seeking access to a diversified portfolio of global assets.