AdvisorShares Dorsey Wright ADR ETF

AdvisorShares Dorsey Wright ADR ETF (AADR) is an actively managed fund that holds mostly American Depositary Receipts (ADRs). ADRs are U.S.-traded shares of foreign companies. A Dorsey Wright momentum model picks the stocks: it buys those whose prices have beaten the rest and holds them until they lag. The fund costs 1.10% a year, against 0.45% for the most similar fund, and held just 36 stocks as of June 30, 2026.

• Over the year to Oct 27, 2026, AADR returned -4.1%.
• Its 5-year annualized return was +5.9% and its 10-year +7.9%.
• In the 2020 COVID crash it fell 40.2% and regained its old high 4.1 months after the low.
• Its worst full calendar year was 2018 (-31.6%); its best was 2017 (+47.7%).
• The deepest fall in its price history was 45% (Jan 26, 2018 to Mar 18, 2020), recovered by Jan 8, 2021.

As of Jun 30, 2026, the fund held 36 securities; the ten largest made up 38.55% of assets. It also reported 9.27% in a money-market fund, most likely cash collateral from lending out shares rather than uninvested money.

• Over the three months to Jun 30, 2026, investors withdrew a net $3.9M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +3.41%, +1.51%, -3.58%.

AADR is actively managed, so it does not track an index. Its goal is long-term growth above international benchmarks such as the MSCI EAFE Index, which covers large developed-market stocks outside North America. In normal conditions the fund puts at least 80% of its assets in ADRs and in securities that act like them. It can buy companies of any size in both developed and emerging markets.

AdvisorShares builds the portfolio with a quantitative model owned by Dorsey, Wright & Associates. The model rests on relative strength, a form of momentum investing. It buys securities that have risen more than others in its universe and holds them until they start to trail. It looks only at price movements, not at company earnings or balance sheets. The model also spreads money across sectors and industry groups, and it shifts between developed and emerging markets based on global price trends. The advisor usually follows the model but has full discretion to depart from it.

Because the model chases changing price trends, the fund trades a lot. Portfolio turnover was 106%, which means the fund replaced roughly all of its holdings in a year. Heavy trading can raise transaction costs and may lead to taxable gains. As of June 30, 2026, the fund held 36 stocks, and the 10 largest made up about 39% of assets.

• AADR charges 1.1% a year, versus an average of 0.45% for the similar funds below.
• Of that, 0.75% is the management fee; the rest covers other fund expenses.
• Using the prospectus's standard example, $10,000 invested would cost about $112 in the first year and $1,336 over 10 years (assuming a 5% annual return).

AADR is a small, concentrated, high-cost momentum fund with deep past drops, so it fits better as a minor holding than as core international exposure.

AADR could add actively chosen foreign and emerging-market stocks to a portfolio built mostly on U.S. holdings. Its declines have been steep. Its worst calendar year was 2018, when it lost 31.2%. In the 2020 COVID crash it fell 40.2% in about a month and recovered by July 20, 2020. In 2022 it fell 30.7% and took 17.8 months to recover, until March 20, 2024. Its deepest drop was 45%, from January 2018 to March 2020. Someone who has to sell shares during a slump like that would lock in large losses. The yield was 1.2% as of October 27, 2026, paid quarterly, so the fund is not much of an income source. Costs are high: the SEC's standard example puts them at $1,336 over 10 years on a $10,000 investment. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.

Matched by closest holdings overlap from the latest N-PORT reports (no similar fund shares 20% or more of its holdings).