AdvisorShares, a Bethesda, Maryland-based investment firm that offers ETF solutions, debuted two new ETFs on Wednesday–the AdvisorShares Dorsey Wright Micro Cap ETF (NASDAQ: DWMC) and the AdvisorShares Dorsey Wright Short ETF (NASDAQ: DWSH).
Both ETFs launched with expense ratios of 0.99% on the Nasdaq stock exchange.
“We’re pleased to again partner with Dorsey Wright and deliver their proprietary micro cap strategy and short equity strategy as fully-transparent, operationally-efficient ETFs,” said Noah Hamman, CEO of AdvisorShares. “We’ve witnessed tremendous success with AADR and we believe that advisors will also discover DWMC and DWSH as compelling offerings to consider for their clients’ long-short equity allocations.”
DWMC hopes to capitalize on companies with a market capitalization of less than $1 billion. Microcap equities, as reflected in the Russell Microcap Index, have seen an 11% increase year-to-date.
DWMC invests in microcap equities with favorable relative strength characteristics that meet or exceed Dorsey Wright’s proprietary methodology for selection. The microcap portfolio will consist of 150 holdings that takes advantage of strong performers and avoids underperformers.