AdvisorShares Focused Equity ETF

CWS

Valor de mercado US$ 121 mi

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AdvisorShares Focused Equity ETF is an actively managed ETF with just 25 stocks in the portfolio, with adjustments applied only once a year. CWS' returns remain unconvincing, as it has underperformed IVV both since my August article and since the beginning of the year. Since inception, CWS has underperformed IVV every calendar year except for 2022. For October 2016–November 2025, its annualized return was around 3% weaker than IVV's.

CWS is an actively managed ETF with a strategy guided by the buy-and-hold philosophy. Despite having relatively strong quality and a value tilt, CWS has trailed the S&P 500 since my February article, chiefly due to the appalling performance of FI, MLR, and ADBE. Compared to IVV, CWS' portfolio is better valued and has a lower beta. But IVV is meaningfully ahead on quality and growth.

CWS offers a concentrated, high-quality mid- and large-cap portfolio with a strong tilt toward technology, healthcare, and industrials, but trades at a premium valuation. The fund's historical returns are only slightly ahead of the benchmark and lag top-performing peers, despite strong profitability and moderate risk metrics. CWS faces notable drawbacks, including high expense ratio and wide bid-ask spreads, making it less attractive versus lower-cost, more efficient alternatives.

Geopolitical tensions are high and the economy's outlook is uncertain — presenting investors even with the best ETFs with challenges.

CWS is an actively managed vehicle with a high-conviction, quality-centered strategy at its crux. CWS has 25 equities in the portfolio, with most of the net assets allocated to industrials. Since April 2024, its growth and quality characteristics have improved. CWS has significantly underperformed the S&P 500 since my April 2024 article. Since inception, its returns have also been mostly unconvincing.

The AdvisorShares Focused Equity ETF (CWS) actively manages a concentrated portfolio of high-growth, strong-fundamental companies, aiming to outperform the S&P 500. Key holdings include Fair Isaac Corporation, Fiserv, Miller Industries, HEICO Corporation, and Amphenol, emphasizing industrials and financials over tech-heavy growth ETFs. The fund's concentrated approach can lead to significant performance swings but offers potential for high returns, balancing tech-heavy portfolios.

CWS is an actively managed investment vehicle based on the Crossing Wall Street "Buy List." Despite five stocks out of 25 replaced earlier this year, CWS' portfolio still comprises expensive, high-quality companies with just average growth characteristics. While I am constructive on CWS, its past performance is hardly persuasive, as the ETF has been chronically lagging IVV since inception, with rare bright spots.

From 2006-2023, The Crossing Wall Street's "Buy List" beat the S&P 500 Index by 130%. In 2016, CWS launched, allowing investors the chance to benefit from the simple 25-stock ETF. But there are two catches. The first is how much CWS's 0.84% expense ratio diminishes returns. The second is how most of this outperformance was isolated to a single year. It's reasonable to question whether Eddy Elfenbein, Crossing Wall Street's founder, can generate alpha moving forward. Since the ETF's launch, it's lagged SPY by 0.73% per year.

US equities, as measured by the S&P 500 Index, have performed strongly so far in 2023.