AdvisorShares Dorsey Wright ADR ETF (AADR)

Overview

The AdvisorShares Dorsey Wright ADR ETF (AADR) seeks long-term capital appreciation by investing in American Depositary Receipts (ADRs) using a relative strength-based approach, selecting ADRs that Dorsey Wright believes are poised to outperform their peers. The fund targets international equities available as ADRs and employs a rules-based strategy to identify investments.

Reputation and Reliability

AdvisorShares specializes in actively managed ETFs and is known for its innovative investment strategies. While relatively smaller compared to industry giants, it has a dedicated following.

Management Expertise

Dorsey Wright & Associates provides the sub-advisory services, bringing their expertise in relative strength analysis and momentum-based investing.

Goal

Seeks long-term capital appreciation.

Investment Approach and Strategy

Strategy: Utilizes a relative strength approach to select ADRs that Dorsey Wright believes are likely to outperform.

Composition Primarily invests in American Depositary Receipts (ADRs), representing equities of non-U.S. companies.

Market Share: Insufficient data available to provide a precise market share for AADR within the broader ADR or international equity ETF landscape.

Total Net Assets (AUM): 34790000

Key Competitors

• SPDR Portfolio Developed World ex-US ETF (SPDW)
• Vanguard FTSE Developed Markets ETF (VEA)
• iShares Core MSCI EAFE ETF (IEFA)

Competitive Landscape

The international equity ETF market is highly competitive, dominated by large, passively managed funds. AADR differentiates itself through its active, relative strength-based approach, potentially appealing to investors seeking alpha. However, this active management comes with a higher expense ratio compared to passive competitors. AADR's smaller AUM also represents a disadvantage compared to its larger peers in terms of trading volume.

Historical Performance: Historical performance data not readily available in structured format for immediate plotting, but can be obtained from financial data providers.

Benchmark Comparison: Benchmark comparison requires specific index data and performance metrics, available from financial data providers.

Expense Ratio: 0.99

Average Trading Volume

The ETF exhibits moderate liquidity, with an average daily trading volume sufficient for most retail investors but less than more popular broad-market ETFs.

Bid-Ask Spread

The bid-ask spread is typically moderate, which can impact trading costs, especially for large orders.

Market Environment Factors

Economic indicators in developed markets, currency fluctuations, and global trade policies significantly impact AADR's performance. Sector-specific growth prospects within the ADRs held by the ETF also play a key role.

Growth Trajectory

AADR's growth depends on its ability to consistently identify and select outperforming ADRs. Changes to Dorsey Wright's relative strength model and adjustments to the ETF's holdings can influence its future performance.

Competitive Edge

AADR's competitive advantage lies in its active management and the use of Dorsey Wright's relative strength methodology, which seeks to identify and invest in ADRs with superior price momentum. This approach distinguishes it from passively managed international equity ETFs. The active management provides the potential for outperformance compared to its passive counterparts. This strategy may be particularly attractive for investors seeking market-beating returns and willing to pay a higher expense ratio.

Volatility

AADR's volatility is influenced by the volatility of the underlying ADRs and the overall international equity market. Due to the active management strategy, volatility can also depend on portfolio turnover.

Market Risk

The ETF is subject to market risk, including fluctuations in international equity markets, currency exchange rate risk, and political and economic risks specific to the countries represented by the ADRs.

Ideal Investor Profile

AADR is suitable for investors seeking international equity exposure with a focus on capital appreciation and who believe in the potential of active management to outperform passive benchmarks. Investors should be comfortable with a higher expense ratio.

Market Risk

AADR is more suitable for investors with a moderate to high risk tolerance and those seeking active management. It is best suited for long-term investors who believe in the value of relative strength investing.

AdvisorShares Dorsey Wright ADR ETF (AADR) offers a unique approach to international equity investing by using a relative strength-based strategy to select ADRs. The fund aims for long-term capital appreciation through active management, distinguishing itself from passive international equity ETFs. While it has a higher expense ratio, it may appeal to investors seeking alpha and those who believe in the value of Dorsey Wright's methodology. However, investors need to be aware of the associated risks and understand the potential for both outperformance and underperformance compared to its benchmark.

Data Sources:

• AdvisorShares Website
• ETF.com
• Morningstar
• Bloomberg

Disclaimers:

The data provided is for informational purposes only and does not constitute investment advice. Investment decisions should be based on individual circumstances and consultation with a qualified financial advisor.