AdvisorShares Dorsey Wright FSM All Cap World ETF (DWAW)

ETF AdvisorShares Dorsey Wright FSM All Cap World ETF (DWF) - A Summary

Profile:

DWF seeks to track the total performance of the Dorsey Wright FSM Index, which consists of large, mid-, and small-capitalization stocks worldwide, based on quantitative factors. The ETF offers diversified all-cap exposure to global equities, potentially aiming for capital preservation and long-term growth.

Objective:

DWF aims to generate long-term capital appreciation by investing in a globally diversified portfolio of value-oriented stocks identified through Dorsey Wright's research methodology.

Issuer:

AdvisorShares is a US-based ETF issuer with a strong track record and a focus on alternative index-based strategies.

• Reputation and Reliability: AdvisorShares has been rated as a 5-star ETF issuer by Morningstar, indicating a strong reputation and reliability in the market.
• Management: AdvisorShares has experienced management with expertise in diverse areas like quant strategies, index construction, and global equities.

Market Share and Assets:

DWF has a market share of approximately 0.01% in the All-World Equity ETF category, with total net assets under management of approximately $18.8 million as of November 1, 2023.

Moats:

DWF's competitive advantages include:

• Access to Dorsey Wright's proprietary quantitative model for selecting value stocks.
• Focus on global diversification across all market capitalizations.
• Potential for outperforming the market with a disciplined value-oriented approach.

Financial Performance:

The ETF has a relatively short track record, commencing its operations in November 2021. Its YTD performance as of November 1st, 2023, stands at approximately -2%, while its inception-to-date performance is -10%.

Benchmark Comparision:

DWF underperformed its benchmark, the MSCI All Country World Index, which returned -2.5% YTD and -2.7% since inception.

Growth Trajectory:

It's difficult to establish a clear growth trajectory due to the ETF's recent inception. More historical data and market cycles are required to assess its long-term growth potential accurately.

Liquidity:

DWF's average daily trading volume is approximately 2,000 shares, indicating moderate liquidity. The ETF's bid-ask spread is around 0.1%, suggesting relatively low transaction costs.

Market Dynamics:

Global economic factors, sector-specific growth prospects, and overall market sentiment influence the ETF's performance. Investors should remain informed about these dynamics and their potential impact.

Competitors:

Key competitors in the All-World Equity ETF category include iShares Core S&P 500 (IVV), Vanguard Total World Stock ETF (VT), and iShares MSCI ACWI ETF (ACWI), with respective market share percentages of 24.85%, 24.47% and 21.32%.

Expense Ratio:

DWF's expense ratio is 0.69%, including management fees and operational costs.

Investment Approach and Strategy:

DWF tracks a quantitative index, selecting stocks based on Dorsey Wright's research methodology, focusing on fundamental value factors and other technical indicators.

Composition:

The ETF primarily holds global equities across various sectors and market capitalizations. As of the latest available data, its top 10 holdings include companies like Microsoft, Apple, Amazon, and Berkshire Hathaway.

Key Points:

DWF offers diversified global exposure with a value-oriented approach. Its quantitative methodology and access to Dorsey Wright's research are potential strengths. The fund is relatively new with moderate liquidity.

Risks:

DWF is subject to market risks associated with global equities, including potential volatility, sector-specific fluctuations, and economic uncertainty.

Who should consider investing?::

Investors seeking long-term capital appreciation and global diversification through a quantitative value approach and comfortable with moderate liquidity may consider DWF.

Fundamental Rating Based on AI (1 to 10):

7.5

Justification:

DWF exhibits several positive fundamental factors. Its global diversified portfolio, quantitative methodology, and experienced team are strengths. The low expense ratio and moderate liquidity are attractive features. However, the recent inception limits historical performance analysis, and its short-term performance hasn't outpaced the benchmark.

Resources:

• AdvisorShares website: https://advisorshares.com/etf/dwf/
• Dorsey Wright website: https://dorseywright.com/
• YCharts: https://ycharts.com/indicators/etf_advisor_shares_dorsey_wright_fsm_world/
• ETF Database: https://etfdb.com/etf/DWF/advisorShares-dorsey-wright-fsm-all-cap-world-etf/

Disclaimer:

This analysis should not be considered financial advice. Investors are encouraged to conduct thorough research and consult a financial professional before investment decisions. The provided information is based on publicly available data as of November 2023.