- FOR IMMEDIATE RELEASE -
AdvisorShares Launches Dorsey Wright Micro Cap ETF (DWMC) and Dorsey Wright Short ETF (DWSH)
BETHESDA, Md. — July 12, 2018 – 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).
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.