AdvisorShares Dorsey Wright Micro-Cap ETF Earns 5-Star Morningstar Rating™

Rhea-AI Summary

AdvisorShares Dorsey Wright Micro-Cap ETF (DWMC) has achieved a prestigious Five-Star Morningstar Rating for its three-year and overall risk-adjusted returns, ranking in the top tier among 585 funds in the US Fund Small Growth category as of May 31, 2022. The ETF, managed by Nasdaq Dorsey Wright, focuses on micro-cap equities with market capitalizations under $1 billion that exhibit strong relative strength characteristics. DWMC aims for long-term capital appreciation, boasting a diverse portfolio of approximately 150 holdings.

Positive

• Achieved a Five-Star Morningstar Rating for three-year and overall risk-adjusted returns.
• Ranks among the top 10% of 585 funds in the US Fund Small Growth category.
• Focused investment strategy in micro-cap equities, potentially high growth.

Negative

• None.

Actively managed ETF achieves prestigious rating among micro-cap ETF peers and its Morningstar category

BETHESDA, Md., June 7, 2022 /PRNewswire/ -- AdvisorShares announced that the AdvisorShares Dorsey Wright Micro-Cap ETF (Ticker: DWMC) has received a Five-Star Morningstar Rating™. DWMC earned the five-star rating for its three-year and overall risk-adjusted returns in Morningstar's US Fund Small Growth category out of 585 funds respectively, as of May 31, 2022.

Actively managed ETF achieves prestigious rating among micro-cap ETF peers and its Morningstar category

The AdvisorShares Dorsey Wright Micro-Cap ETF is sub-advised by Nasdaq Dorsey Wright (NDW), who are renowned for their core philosophy of relative strength investing. Relative strength investing 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.

In pursuing its investment strategy, 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 NDW'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.

Nasdaq Dorsey Wright is a pioneer of technical analysis and relative strength investing. DWMC is the only investment vehicle which provides investors access to NDW's micro-cap investment strategy expertise.

Past performance is not indicative of future results. For standardized and month-end performance and more information on DWMC, please visit advisorshares.com/etfs/dwmc.

AdvisorShares regularly hosts live webinars featuring portfolio managers, including Nasdaq Dorsey Wright and other leading industry experts. You may learn more and register at the AdvisorShares Event Center for upcoming event sessions and educational insights.

About AdvisorShares

AdvisorShares is a leading provider of active ETFs. For financial professionals and investors requesting more information, call 1-877-843-3831 or visit advisorshares.com. Follow @AdvisorShares on Twitter and on Facebook for more insights.

Dorsey, Wright & Associates, LLC, a Nasdaq Company, is a registered investment advisory firm. Registration does not imply any level of skill or training. The relative strength strategy is NOT a guarantee.  There may be times where all investments and strategies are unfavorable and depreciate in value.  Relative Strength is a measure of price momentum based on historical price activity.  Relative Strength is not predictive and there is no assurance that forecasts based on relative strength can be relied upon to be successful or outperform any index, asset, or strategy. Past performance, hypothetical or actual, does not guarantee future results.  In all securities trading there is a potential for loss as well as profit.  It should not be assumed that recommendations made in the future will be profitable or will equal the performance as shown. 

Before investing you should carefully consider the Fund's investment objectives, risks, charges and expenses. This and other information is in the prospectus, a copy of which may be obtained by visiting the Fund's 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 micro-cap 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 Morningstar Rating™ for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) 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 5 stars, the next 22.5%receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) 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, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period has the greatest impact because it is included in all three rating periods.

©2022 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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SOURCE AdvisorShares

FAQ

What is the Morningstar rating of the AdvisorShares Dorsey Wright Micro-Cap ETF (DWMC)?

The AdvisorShares Dorsey Wright Micro-Cap ETF (DWMC) has received a Five-Star Morningstar Rating for its risk-adjusted returns.

How many funds is DWMC compared to in its category?

DWMC is compared to 585 funds in the US Fund Small Growth category.

What is the investment focus of the AdvisorShares Dorsey Wright Micro-Cap ETF (DWMC)?

DWMC focuses on micro-cap equities with market capitalizations under $1 billion that demonstrate favorable relative strength.

Who manages the AdvisorShares Dorsey Wright Micro-Cap ETF (DWMC)?

The ETF is sub-advised by Nasdaq Dorsey Wright, known for their expertise in relative strength investing.

How many holdings does the DWMC ETF have?

The AdvisorShares Dorsey Wright Micro-Cap ETF typically holds approximately 150 securities.