AdvisorShares Dorsey Wright FSM US Core ETF (DWUS)

Overview

The AdvisorShares Dorsey Wright FSM US Core ETF (DW core) seeks long-term capital appreciation by investing in US equities, using a relative strength-based methodology. It focuses on selecting securities that have demonstrated superior performance relative to their peers.

Reputation and Reliability

AdvisorShares is known for offering actively managed ETFs with distinctive investment strategies. Their reliability depends on the consistency of their investment process.

Management Expertise

The management team utilizes the Dorsey Wright relative strength methodology, which has a track record in momentum-based investing.

Goal

Seeks long-term capital appreciation.

Investment Approach and Strategy

Strategy: The ETF uses a relative strength-based approach to identify and invest in US equities showing strong momentum. It does not track a specific index.

Composition Primarily holds US equity securities across various sectors.

Market Share: DW coreu2019s market share is relatively small compared to broad market ETFs.

Total Net Assets (AUM): 48344573.89

Key Competitors

• SPY
• IVV
• VTI
• VOO

Competitive Landscape

The ETF market is dominated by large, passively managed ETFs. DW coreu2019s active management and relative strength approach offer a differentiated strategy but face competition from lower-cost index funds. The advantage is the potential for outperformance in trending markets, while the disadvantage is higher fees and potential underperformance in choppy markets.

Historical Performance: Historical performance data should be obtained from reliable financial data sources to assess its returns over various periods.

Benchmark Comparison: The ETF's performance should be compared to a broad market index like the S&P 500 or a relative strength index to evaluate its effectiveness.

Expense Ratio: 0.79

Average Trading Volume

The ETF's average trading volume is moderate, which could impact the ease of buying and selling shares, but is adequate for most investors.

Bid-Ask Spread

The bid-ask spread is variable depending on trading volume and market conditions, but the bid-ask spread is generally acceptable for DW core.

Market Environment Factors

Economic growth, interest rates, and market volatility influence the performance of US equities and the effectiveness of the relative strength strategy. Sector rotation and investor sentiment also play a role.

Growth Trajectory

The ETF's growth depends on its ability to consistently outperform its benchmark and attract investors seeking active management and momentum-based strategies. Changes to the investment strategy or holdings will influence future performance.

Competitive Edge

DW core's competitive edge comes from its use of the Dorsey Wright relative strength methodology, a well-known and respected approach in the momentum investing space. This active management strategy aims to identify and invest in companies with strong price momentum, potentially leading to outperformance during trending markets. The ETF offers a differentiated investment approach compared to passive index funds and provides exposure to a portfolio selected based on relative strength, rather than market capitalization. However, this approach may not always be successful, and investors should be prepared for potential underperformance in certain market conditions.

Volatility

The ETF's volatility depends on the volatility of its underlying equity holdings and the effectiveness of its relative strength strategy. Momentum-based strategies can experience periods of high volatility.

Market Risk

The ETF is subject to market risk, including fluctuations in equity prices, economic downturns, and changes in investor sentiment. Additionally, the relative strength strategy may not perform well in all market conditions.

Ideal Investor Profile

Investors who are comfortable with active management, seek capital appreciation, and understand the risks and potential rewards of momentum-based investing are the ideal investor.

Market Risk

This ETF may be suitable for investors with a longer-term investment horizon and a higher risk tolerance, including both active traders and long-term investors.

The AdvisorShares Dorsey Wright FSM US Core ETF employs a relative strength strategy to invest in US equities, offering a differentiated approach compared to passive index funds. Its performance is influenced by market trends and the effectiveness of the Dorsey Wright methodology. While it holds the potential for outperformance in trending markets, it also carries higher fees and the risk of underperformance in choppy markets. This ETF suits investors seeking active management and capital appreciation with an understanding of momentum-based investing.

Data Sources:

• advisorshares.com
• etf.com
• morningstar.com
• yahoofinance.com

Disclaimers:

The data and analysis provided are for informational purposes only and do not constitute financial advice. Investment decisions should be made based on individual circumstances and consultation with a qualified financial advisor. Market share data is approximate and may vary depending on the source and methodology.