AdvisorShares Dorsey Wright Short ETF (DWSH)

Among Marketbeat's numerous investor resources are screener pages seeking hard-to-find investments. One of those tools is the screener page for Cheap Dividend Stocks, which is a veritable treasure trove of candidates.

The rout in the U.S. bond market has deepened on growing anticipation of persistently high interest rates, sending shockwaves across the global economy and financial market.

Wall Street delivered a downbeat show last week with the S&P 500 and Nasdaq logging worst weeks since March due to rising rate worries.

Wall Street delivered downbeat performances last week due to rising rates.

Wall Street delivered downbeat performances last week due to rising rates.

The erosion of consumer savings, deteriorating profit margins, high interest rates and global economic uncertainties collectively contribute to the somber stock outlook.

Wall Street delivered downbeat performances last week due to rising rates.

The Fed minutes released last week shed light on the discussions surrounding inflation and the need for further rate hikes. At the best case scenario, rates are likely to remain higher for longer.

While the stock market has defied expectations in 2023 and reached new heights, there are valid reasons to approach the current situation with caution. The excitement for AI, the concentration of stocks in a few firms and still-present inflationary pressure indicate potential bubbles.

Last year was a rough market, bringing equity risk to the forefront of investors' concerns. So, AdvisorShares managing director James Carl told NYSE's Judy Shaw at Exchange 2023 that the firm has been focused on making sure that clients understand the solutions they can use to manage their equity risk.

If you were to ask AdvisorShares Founder and CEO Noah Hamman what investors and advisors were looking for a year or two ago, he might have said “yield and income.” But now, that's changed dramatically.

DWSH aims to deliver returns in rougher stock market environments by shorting stocks. Nearing its 5-year mark, this ETF has yet to show what it is consistently good at doing. Its low asset base is likely a result of that.

The AdvisorShares Dorsey Wright Short ETF (DWSH) allows investors to short a basket of relative strength laggards, as identified by Dorsey Wright's proprietary system. While the fund has delivered positive returns in the short-run, the strategy seems flawed as its 3Yr returns of -24.6% p.a. is significantly worse than the inverse of the market.

The Fed delivered another rate hike by three-quarters of a percentage point leading to dismal trading in U.S. equities. Though terrible trading in the stock world pushed the ETF space into deep red on the day, a few ETFs still saw strength.

Wall Street was downbeat last week as recessionary fears mounted on steeper Fed rate hikes. Rate hikes have been rampant globally.

Shorting equity markets generally has historically been a high-risk proposition, but the risk of significant and protracted downturns is currently very high. Four ETFs, SH, TAIL, DWSH, and BTAL are examined according to three criteria -- performance, risk, and exposure to specific market scenarios.