DWSH: ADVISORSHARES DORSEY WRIGHT SHORT ETF
Understanding the AdvisorShares Dorsey Wright Short ETF (DWSH)
The AdvisorShares Dorsey Wright Short ETF (ticker: DWSH) is an exchange-traded fund designed with a specific strategy in mind. Based on the current data, this ETF is focused on different types of holdings, including a large position in an Invesco short-term government and agency fund.
What the numbers show
When looking at how this ETF has performed, it is important to distinguish between price return and total return. Price return only tracks the change in the share price. Total return includes both the share price changes and any distributions (cash payments) made to investors.
• Year-to-Date (YTD): The YTD price return is approximately -9.01%. The YTD total return is also approximately -9.01%.
• One-Year: The one-year price return was approximately -16.94%. However, the one-year total return was approximately -11.67%. This shows that distributions helped offset some of the share-price decline over the last year.
• Three-Year: The three-year price return was approximately -39.02%, while the three-year total return was approximately -24.06%.
• Five-Year: The five-year total return was approximately -16.31%.
An estimated price from roughly one year ago was $7.06, compared to the current price of $5.86.
Income and distribution explanation
DWSH has a distribution yield of approximately 6.94%. This number describes the cash distributions relative to the ETF's price. It is important to remember that a high yield does not guarantee that an investor earned that percentage as a total return.
The trailing distributions were $0.41. The distribution frequency is described as "irregular" or "less frequent," with only one payout recorded in the last 12 months.
NAV erosion explanation
The supplied data is sufficient to evaluate price erosion, but it does not include enough historical NAV-per-share data to confirm or rule out NAV erosion.
However, we can look at the erosion-risk score. DWSH has an erosion score of 55, which is labeled as "moderate price erosion." This means the fund has shown a moderate level of share-price deterioration.
Top Holdings
The following are the top holdings for this ETF (note that this is a partial list):
• INVESCO SHRT-TRM INV GOV&AGCY INSTL (AGPXX): 82.43%
• CASH: 1.05%
Other holdings in the portfolio include small negative weights in companies like Fair Isaac Corp, Equifax Inc, and Chipotle Mexican Grill Inc. Please note that holdings can change over time.
Pros
• The ETF provides a distribution yield of approximately 6.94%.
• Total returns have been higher than price returns, meaning distributions provided some value during periods of share-price decline.
Cons
• The ETF has experienced significant share-price declines over the one-year and three-year periods.
• The fund shows a moderate level of price erosion.
Beginner takeaway
When researching DWSH, it is vital to look at both the share price and the total return. While the distribution yield is relatively high, the ETF has faced significant price declines over the last few years. High yields can sometimes be accompanied by falling share prices, so it is important to understand the difference between receiving cash income and the overall growth of your investment.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | INVESCO SHRT-TRM INV GOV&AGCY INSTL | AGPXX | 82.43% |
| 2 | CASH | n/a | 1.05% |
| 3 | FAIR ISAAC CORP | FICO | -0.01% |
| 4 | EQUIFAX INC | EFX | -0.01% |
| 5 | THOR INDUSTRIES INC | THO | -0.01% |
| 6 | ALEXANDRIA REAL ESTATE EQUITIES INC | ARE | -0.01% |
| 7 | ZOETIS INC CLASS A | ZTS | -0.01% |
| 8 | GODADDY INC CLASS A | GDDY | -0.01% |
| 9 | LENNAR CORP CLASS A | LEN | -0.01% |
| 10 | NU SKIN ENTERPRISES INC CLASS A | NUS | -0.01% |