 The
AdvisorShares Focused Equity ETF (CWS) is an actively managed
exchange-traded fund that invests in a concentrated portfolio of 30 to
40 U.S. stocks of any market capitalization. The fund's objective is
to achieve long-term capital appreciation by investing in high-quality
companies that are believed to have attractive valuations and
sustainable competitive advantages.
The fund is managed by
Vident Investment Advisory, LLC, which uses a proprietary quantitative
model to identify stocks with strong fundamentals and attractive
valuations. The model focuses on factors such as earnings quality,
cash flow, return on assets, and valuation ratios to select stocks for
the portfolio.
The portfolio is constructed to be
well-diversified across sectors and industries, but the fund may have
a higher concentration in certain sectors based on the manager's view
of market trends and opportunities. As of March 23, 2023, the fund had
the largest holdings in the technology, healthcare, and consumer
discretionary sectors.
The expense ratio for CWS is 0.75%,
which is higher than the average expense ratio for U.S. equity ETFs.
However, the actively managed nature of the fund may justify the
higher cost for investors seeking a concentrated and actively managed
equity strategy.
Investors in CWS should be aware that the
concentrated nature of the portfolio may result in higher volatility
and potential for losses compared to a more diversified fund. As with
any investment, it is important to carefully consider one's investment
objectives, risk tolerance, and overall portfolio diversification
before investing in CWS.
|
