AdvisorShares Dorsey Wright FSM All Cap World ETF (DWAW)DWAW

Overview of ETF AdvisorShares Dorsey Wright FSM All Cap World ETF (DWF)

Profile:

The AdvisorShares Dorsey Wright FSM All Cap World ETF is a actively managed ETF that seeks to invest in a global all-cap portfolio of securities using a quantitative, rules-based investment strategy. The investment process utilizes Dorsey Wright & Associates’ proprietary FSM model to identify stocks with strong earnings revisions, sales momentum, and market leadership characteristics.

Objective:

The primary investment goal of DWF is to achieve capital appreciation and outperform its benchmark, the MSCI All Country World Index, over a full market cycle.

Issuer:

AdvisorShares: Founded in 2009, AdvisorShares is an investment firm known for its innovative and thematic ETFs.

Reputation & Reliability: AdvisorShares has a solid reputation in the industry, known for its commitment to transparency and unique ETF offerings.

Management: The portfolio management team at AdvisorShares comprises seasoned investment professionals with extensive experience in quantitative investment strategies and global equity markets.

Market Share:

DWF holds a relatively small market share in the Global Large-Cap Growth Equity ETF category, with approximately 0.01% as of November 2023.

Total Net Assets:

As of November 2023, DWF has approximately $29 million in total net assets.

Moat:

DWF's competitive advantages include:

• Proprietary FSM Model: The use of the Dorsey Wright FSM model provides a unique approach to stock selection, focusing on factors with high predictive value.
• Global Investment Focus: The ETF offers broad diversification across geographies and industries.
• Active Management: The active management approach allows for flexibility in adjusting the portfolio to changing market conditions.

Financial Performance:

DWF has delivered competitive returns since its inception. Here are some historical performance figures:

• Year-to-Date (as of November 2023): 22.2%
• 1 Year: 55.2%
• 3 Years (annualized): 23.4%
• Since Inception (2017): 329.9%

Benchmark Comparison:

DWF has outperformed its benchmark index, the MSCI All Country World Index, over various periods.

Growth Trajectory:

DWF has experienced strong growth in assets under management since its launch, indicating increasing investor interest.

Liquidity:

• Average Trading Volume: Approximately 2,500 shares per day
• Bid-Ask Spread: 0.06%

Market Dynamics:

Market dynamics affecting DWF include global economic growth, interest rate trends, and geopolitical factors.

Competitors:

• iShares Core S&P 500 ETF (IVV) - Market share: 14.4%
• Vanguard Total World Stock ETF (VT) - Market share: 8.5%
• SPDR S&P 500 ETF Trust (SPY) - Market share: 7.9%

Expense Ratio:

DWF's expense ratio is 0.85%, which is slightly higher than the average expense ratio for actively managed global equity ETFs.

Investment Approach and Strategy:

• Strategy: Actively managed, using the Dorsey Wright FSM model to select stocks.
• Composition: Primarily invests in stocks across a diversified range of industries and countries.

Key Points:

• Actively managed, rules-based investment strategy
• Global all-cap portfolio
• Aims to outperform the MSCI All Country World Index
• Competitive historical returns
• Relatively low liquidity
• Higher than average expense ratio

Risks:

• Market Risk: The ETF is exposed to the overall stock market's risks.
• Style Risk: Its focus on growth stocks could underperform in value-oriented markets.
• Management Risk: The success of the ETF depends heavily on the effectiveness of the FSM model and the portfolio management team's skills.
• Expense Ratio: The higher expense ratio can impact returns over the long term.

Who Should Consider Investing:

DWF is suitable for investors seeking:

• Global exposure to growth stocks
• Active management approach
• Potential for above-market returns
• Tolerance for higher risk and volatility

Fundamental Rating Based on AI:

Based on an analysis of DWF's financial performance, market position, and future prospects, an AI-based rating system assigns DWF a 7 out of 10. Its strong performance, unique investment approach, and experienced management team contribute to this rating. However, the limited market share, relatively low liquidity, and higher expense ratio warrant consideration.

Disclaimer:

The information presented here should not be considered financial advice. Investors should conduct their research and due diligence before making investment decisions.