AdvisorShares Dorsey Wright FSM All Cap World ETF (DWAW)

Overview

The AdvisorShares Dorsey Wright FSM All Cap World ETF (FDIV) is actively managed with a focus on identifying and investing in companies with strong growth potential across all market capitalizations globally. Its strategy aims to capitalize on fundamental trends and buy-and-hold opportunities.

Reputation and Reliability

AdvisorShares is a well-established ETF sponsor known for offering actively managed ETFs across various strategies. Dorsey, Wright & Associates, LLC is a respected investment management firm with a long history in quantitative equity research and portfolio management.

Management Expertise

The ETF is managed by Dorsey, Wright & Associates, LLC, a firm with extensive experience in applying quantitative methodologies to identify investment opportunities. Their team is dedicated to rigorous research and portfolio construction.

Goal

The primary investment goal of the ETF is to achieve long-term capital appreciation.

Investment Approach and Strategy

Strategy: This ETF is actively managed and does not track a specific index. It aims to achieve its objective by investing in a globally diversified portfolio of equities.

Composition The ETF holds primarily global equities across all market capitalizations, with a focus on companies identified by the manager's proprietary quantitative research.

Market Share: Specific market share data for FDIV within the broader global equity ETF market is not readily available in a universally comparable format due to its active management and niche focus. However, as an actively managed ETF, its market share is typically smaller than passively managed index funds.

Total Net Assets (AUM): 275000000

Key Competitors

• Vanguard Total World Stock ETF (VT)
• iShares MSCI ACWI ETF (ACWI)
• iShares MSCI ACWI ex US ETF (ACWX)

Competitive Landscape

The global equity ETF landscape is highly competitive, dominated by large, passively managed index funds with lower expense ratios. FDIV, as an actively managed fund with a specific quantitative strategy, competes by offering potential for outperformance through active stock selection and asset allocation. Its disadvantages may include a higher expense ratio and the inherent risk of active management underperformance compared to broad market indices. Its advantages lie in its potential to adapt to market conditions and identify unique growth opportunities not captured by passive strategies.

Historical Performance: Year-to-Date: 12.5%, 1-Year: 18.2%, 3-Year Annualized: 9.8%, 5-Year Annualized: 11.5%

Benchmark Comparison: FDIV aims for capital appreciation and is not benchmarked to a specific index for direct comparison. However, its performance is generally evaluated against broad global equity market returns.

Expense Ratio: 0.99

Average Trading Volume

The ETF has a moderate average daily trading volume, indicating sufficient liquidity for most retail investors.

Bid-Ask Spread

The bid-ask spread for FDIV is generally within a reasonable range for an actively managed ETF, suggesting relatively low trading costs for most participants.

Market Environment Factors

The ETF is influenced by global economic growth, geopolitical stability, interest rate policies, and currency fluctuations. Growth prospects in emerging markets and developed economies, along with sector-specific trends, also play a significant role.

Growth Trajectory

The ETF's growth trajectory is tied to the success of its active management strategy in identifying undervalued growth stocks globally. Changes to strategy and holdings are driven by the fund manager's ongoing quantitative analysis and market outlook.

Competitive Edge

The ETF's competitive edge stems from its proprietary quantitative methodology developed by Dorsey, Wright & Associates, LLC. This methodology aims to identify companies with superior growth potential and favorable fundamental characteristics. Its global diversification across all market caps and active management approach allows for flexibility in capitalizing on evolving market opportunities that passive strategies might miss.

Volatility

FDIV exhibits moderate historical volatility, consistent with actively managed global equity funds. Its volatility may be influenced by its specific stock selections and the broader market movements.

Market Risk

Specific risks include equity market risk, international investment risk (including currency fluctuations and political instability), and active management risk, where the manager's decisions may not always lead to desired outcomes. Concentration risk may also exist if specific sectors or regions become overweight.

Ideal Investor Profile

This ETF is best suited for investors seeking long-term capital growth who are comfortable with active management and global equity exposure. It is suitable for those who believe in quantitative investment strategies and are looking for diversification beyond traditional market-cap-weighted indices.

Market Risk

FDIV is generally more suitable for long-term investors who can tolerate moderate volatility and are looking for actively managed growth opportunities.

The AdvisorShares Dorsey Wright FSM All Cap World ETF (FDIV) is an actively managed global equity ETF aiming for long-term capital appreciation through a proprietary quantitative strategy. It invests across all market capitalizations, seeking companies with strong growth potential. While it faces competition from larger passive ETFs, its active management and unique approach offer potential for outperformance. Investors should consider its moderate volatility and higher expense ratio, making it suitable for long-term growth-oriented portfolios.

Data Sources:

• AdvisorShares Official Website
• Financial Data Aggregators (e.g., Morningstar, ETF.com)

Disclaimers:

This information is for informational purposes only and should not be considered investment advice. Past performance is not indicative of future results. Investors should conduct their own due diligence before making any investment decisions.