BETHESDA, Md., July 12, 2018 /PRNewswire/ -- AdvisorShares, a
leading sponsor of actively managed exchange-traded funds (ETFs),
announced that the AdvisorShares Dorsey Wright Micro Cap ETF
(Ticker: DWMC) and the AdvisorShares Dorsey Wright Short ETF
(Ticker: DWSH) began trading on July
11, 2018.
DWMC and DWSH are actively managed by Nasdaq Dorsey Wright who
are renowned for their core philosophy of relative strength
investing, which involves buying securities that have appreciated
in price more than the other securities in their investment
universe and holding those securities until they exhibit sell
signals. Both DWMC and DWSH follow this core philosophy and use
technical, systematically-driven approaches that refrain from using
fundamental company data and remove any human emotion from the
day-to-day decision making. Dorsey
Wright also utilizes their proprietary relative strength
approach as the portfolio manager for the AdvisorShares Dorsey
Wright ADR ETF (Ticker: AADR), which carries a five-star
Morningstar rating for its overall risk-adjusted performance and
ranks among the top-performing international equity strategies
among both mutual funds and ETFs.1
DWMC seeks long-term capital appreciation by investing in
exchange-listed micro cap equities with sufficient liquidity that
have a market capitalization of less than $1
billion. DWMC invests in the micro cap securities that
demonstrate the most favorable relative strength characteristics
according to Dorsey Wright's
proprietary methodology, resulting in a portfolio of approximately
150 holdings that aims to allow its winners to run while avoiding
laggards. Some of the largest companies in the world began as micro
caps and DWMC seeks to capitalize on the significant, upside growth
potential of the most attractive, smallest-sized companies today as
they work to become future market leaders.
Conversely, the short equity DWSH seeks to turn laggards into
winners. DWSH identifies and short sells securities that
demonstrate the highest relative weakness from an investment
universe primarily comprised of large-cap U.S.-traded equities.
DWSH's dedicated short equity portfolio typically has 75-100
holdings that begin with a modified equal weighting. At certain
technical levels during severe market downturns, the strategy can
allocate its short exposure more broadly to the domestic equity
market – by shorting individual ETFs or futures contracts – seeking
to enhance its total return. DWSH's systematic and selective
approach can serve as a hedge to long, domestic equity exposure,
while offering the potential opportunity to add alpha to an
investment portfolio especially during a bear market.
"We're pleased to again partner with Dorsey Wright and deliver their proprietary
micro cap strategy and short equity strategy as fully-transparent,
operationally-efficient ETFs," said Noah
Hamman, chief executive officer of AdvisorShares. "We've
witnessed tremendous success with AADR and we believe that advisors
will also discover DWMC and DWSH as compelling offerings to
consider for their clients' long-short equity allocations."
"ETFs represent an expanding frontier of innovation and
investment accessibility for financial advisors," said Tom Dorsey, founder of Nasdaq Dorsey Wright. "As
pioneers of technical analysis and relative strength investing,
we're pleased to again share our portfolio management expertise
through AdvisorShares with these fully-transparent ETFs that
advisors may use to potentially benefit their investment
practice."
"DWMC and DWSH represent Dorsey
Wright firsts, where we are managing micro cap equity and
short equity investment strategies that follow our core relative
strength philosophy," said John
Lewis, CMT, senior portfolio manager at Nasdaq Dorsey Wright
and the portfolio manager of AADR, DWMC and DWSH. "We believe that
our technical, systematic approach can apply successfully across a
multitude of investment strategies and this includes DWMC and DWSH,
which also provide the structural benefits of fully-transparent
ETFs."
For financial professionals and investors requesting more
information, please visit www.advisorshares.com or call an
AdvisorShares investment consultant at 1-877-THE-ETF1
(1-877-843-3831).
About AdvisorShares
A leading provider in the actively managed ETF marketplace,
AdvisorShares offers 15 active ETFs with $880 million of assets under management (as of
July 1, 2018). Visit
www.advisorshares.com to register for free weekly commentary and
updates on our active ETF suite. Visit www.alphabaskets.com for
educational insight into the active ETF marketplace, and follow
@AdvisorShares on Twitter, and on Facebook.
Before investing you should carefully consider the Funds'
investment objectives, risks, charges and expenses. This and other
information is in the prospectus, a copy of which may be obtained
by visiting the Funds' website at www.AdvisorShares.com.
Please read the prospectus carefully before you invest.
Foreside Fund Services, LLC, distributor.
The Fund is subject to a number of risks that may affect the
value of its shares, including the possible loss of principal.
Stock prices of microcap companies are significantly more volatile,
and more vulnerable to adverse business and economic developments,
than those of larger companies. Micro cap stocks may also be thinly
traded, making it difficult for the Fund to buy and sell them.
There is no guarantee that the Fund will achieve its investment
objective.
The Fund is subject to a number of risks that may affect the
value of its shares, including the possible loss of principal.
Short sales are transactions in which the Fund sells a security it
does not own. To complete the transaction, the Fund must borrow the
security to make delivery to the buyer. The Fund is then obligated
to replace the security borrowed by purchasing the security at the
market price at the time of replacement. If the underlying security
goes down in price between the time the Fund sells the security and
buys it back, the Fund will realize a gain on the transaction.
Conversely, if the underlying security goes up in price during the
period, the Fund will realize a loss on the transaction. Any such
loss is increased by the amount of premium or interest the Fund
must pay to the lender of the security. Likewise, any gain will be
decreased by the amount of premium or interest the Fund must pay to
the lender of the security. Because a short position loses value as
the security's price increases, the loss on a short sale is
theoretically unlimited. Short sales involve leverage because the
Fund borrows securities and then sells them, effectively leveraging
its assets. The use of leverage may magnify gains or losses for the
Fund. As with any fund, there is no guarantee that the Fund will
achieve its investment objective.
Shares are bought and sold at market price (closing price) not
net asset value (NAV) and are not individually redeemed from the
Fund. Market price returns are based on the midpoint of the bid/ask
spread at 4:00 pm Eastern Time (when
NAV is normally determined) and do not represent the return you
would receive if you traded at other times.
1 Overall Morningstar rating is derived from a
weighted average of the fund's three-, five-, and 10-year (if
applicable) risk-adjusted returns as of May
31, 2018. AADR is in the Foreign Large Growth category,
which consists of 345 funds in three-year, 307 in five-year, and
216 in 10-year.
The Morningstar Rating™ for funds, or "star rating," is
calculated for managed products with at least a three-year history.
Exchange-traded funds and open-ended mutual funds are considered a
single population for comparative purposes. It is calculated based
on a Morningstar Risk-Adjusted Return measure that accounts for
variation in a managed product's monthly excess performance,
placing more emphasis on downward variations and rewarding
consistent performance. The top 10% of products in each product
category receive five stars, the next 22.5% receive four stars, the
next 35% receive three stars, the next 22.5% receive two stars, and
the bottom 10% receive one star. The Overall Morningstar Rating for
a managed product is derived from a weighted average of the
performance figures associated with its three- and five-year
Morningstar Rating metrics. The weights are: 100% three-year rating
for 36-59 months of total returns, 60% five-year rating/40%
three-year rating for 60-119 months of total returns.
© 2018 Morningstar, Inc. All Rights Reserved. The information
contained herein: (1) is proprietary to Morningstar; (2) may not be
copied or distributed; and (3) is not warranted to be accurate,
complete or timely. Neither Morningstar nor its content providers
are responsible for any damages or losses arising from any use of
this information. Past performance is no guarantee of future
results.
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