The active ETF’s goal is to outperform international stock benchmarks such as the MSCI EAFE, and the fund has certainly delivered during its first three years. Most ETFs are index-based, but providers are rolling out more actively managed funds.
AADR is fairly concentrated, typically holding between 20 and 30 stocks.
“The portfolio is purposely very different from international benchmarks and other international funds,” according to AdvisorShares. “The AADR portfolio management team seeks to invest in businesses that have benefited from long-lasting global trends (tailwinds), a growing competitive advantage (a widening economic moat) and a superior corporate culture (great people). Finally, AADR recognizes the role valuation plays in investment returns and therefore seeks to pay a reasonable price for companies.”
AdvisorShares WCM/BNY Mellon Focused Growth ADR ETF
Story updated to correct attribution of AdvisorShares quote.