Dorsey Wright momentum ETFs: top holdings

The Dorsey Wright momentum ETFs are value weighted, using a proprietary ranking metric.

Relative component prices are shown below.  Positions are rebalanced quarterly.

DWAS (small-cap momentum)

(click to enlarge)

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Top ten holdings comprise 15% of the fund, ranging from 1% to 2% of the fund’s size.  Eight of these stocks appreciated over 50% in the last year, showing strong price momentum.  EXAS and PIR are showing a small annual loss; it will be interesting to see whether they appear in the top ten after the next rebalancing.

PDP (large-cap momentum)

(click to enlarge)

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The large cap fund has relatively larger positions, up to 3%, and the top ten cover a quarter of the fund.

Nine of the top ten stocks display a pattern of strong 12 month price momentum (>30%).  The obvious exception is AAPL which lost a third of its value in a year.  Clearly, price momentum is not the only ranking metric utilized in the fund.

Interestingly, AAPL is the strongest performer this quarter amongst the top ten stocks.  That the ranking metric is able to select this recent winner is impressive.

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One thought on “Dorsey Wright momentum ETFs: top holdings

  1. Pingback: Dorsey Wright momentum, top holdings [edited] | RRSP Strategy

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