Arrow Funds CEO Joe Barrato Discusses How Much Investors Should Allocate to International Equities on NASDAQ's Trade Talks.
Interview originally recorded on January 23, 2018. By clicking on or copying the link above you will be leaving the Arrow Funds site and entering a third party site. Arrow Funds is not responsible for any information contained on these third party sites. Opinions expressed are subject to change at any time, are not guaranteed and should not be considered investment advice.
Investment Strategy Seeks long-term capital appreciation that corresponds generally to the performance, before fees and expenses, of the Dorsey Wright Country and Stock Momentum Index. The index is constructed pursuant to Dorsey, Wright & Associates' proprietary methodology. The index has a relative strength focus that looks for the 10 strongest performing countries among a universe of 41 countries. Once the country is identified, the index methodology is designed to identify 10 companies that demonstrate powerful relative strength characteristics within that country. The fund and the index are equally weighted and rebalanced and reconstituted quarterly.
Fund Highlights
Global Growth- momentum focus
May provide low correlation to domestic equity market
Diversification tool for traditional international portfolios (Complements Value and Cap-weighted)
May be negatively correlated within and across countries
Foreign universe: 41 countries from the developed and emerging markets
Country stock baskets will represent the top 10 securities with highest relative strength
Security screens—company's location and economic ties will determine its country designation
Index methodology follows a strict screening process
Dorsey Wright has been capitalizing on the momentum anomaly since 1987
Momentum Effect among Countries The momentum anomaly says that countries with high returns in the past will continue to outperform in the near future. There have been countless studies that show the benefit of momentum strategies in U.S. and foreign markets, and momentum strategies have had consistent performance. There are fundamental reasons to explain why momentum anomalies across countries are viable. Investors should understand that price and performance of country momentum can change or may not continue. There is a natural under-reaction by the market to information, and price momentum is not impacted by such fundamental trends. Another may be behavioral biases like investor herding. The Dorsey Wright Country and Stock Momentum Index was developed to exploit the international momentum anomaly. The index was designed to find countries with high relative performance and when such performance does not persist, it has the discipline to sell. The Arrow DWA Tactical: International ETF, previously Arrow DWA Country Rotation ETF provides investors a low cost and packaged solution to access this trading strategy.
DWCR Country Exposures Data as of 12/31/2022.
Equal Country Rotation*
*Exposure to 10 Countries and 10 Companies within each Country.
Profile
Market Data
as of 03/17/2023
Symbol
DWCR
NAV Price
$26.65
Exchange
CBOE
NAV Price Change
$-3.00
Inception Date
12/28/2017
Market Price¹
$26.59
Cusip
042765685
Market Price Change
$-0.19
Related Index
Dorsey Wright Country and Stock Momentum Index
Premium/Discount
-6.50
Net Expense Ratio²
1.11%
Shares Outstanding
350,000
IOPV Ticker
DWCR.IV
Volume
3
Related Index Ticker
DWACSMT
Total Net Assets
$9,327,500.00
Market Data
Daily
Month-End
Quarter-End
as of
Total Returns (%)*
NAV
Market Price¹
Index
YTD
-3.32
-3.31
-2.89
1 Month
-5.91
-5.22
-5.13
3 Months
-2.08
-1.99
-1.10
6 Months
1.66
2.17
1.86
1 Year
-12.52
-11.74
-10.05
3 Years
15.23
15.98
18.71
5 Years
-0.16
-0.16
3.04
10 Years
0.00
0.00
0.00
Since Inception (12/28/2017)*
0.41
0.36
3.51
Calendar Year Returns
Total Returns (%)*
NAV
Market Price¹
Index
2017²
0.23
0.67
0.44
2018
-15.20
-16.19
-11.74
2019
15.20
15.43
16.84
2020
15.66
16.60
20.02
2021
16.55
16.03
19.95
Fee & Expenses
Expense Type
Amount
Management Fees
0.70
Other Expenses
1.48
Acquired Fees
0.01
Total Fund Expenses³
2.14
Holdings as of 03/17/2023 (Holdings are subject to change)
The Arrow DWA Tactical: International ETF may not be suitable for all investors. New funds have a limited performance record. Exchange traded products are bought and sold at market price, not NAV, and are not individually redeemed from the fund. Buying and selling shares generally results in brokerage commissions which will reduce returns. The market price may be higher (premium) or lower (discount) than the Net Asset Value (NAV). The fund’s portfolio may underperform its benchmark and/or other asset classes. The fund’s portfolio may underperform the general equity markets, or other asset classes, with the potential for greater individual security risk, asset class risk, and higher industry concentration risk than more broadly diversified portfolios. The fund may invest in large-cap, mid-cap, and small-cap securities. Investing in small-cap and mid-cap securities may have special risks, including wider variations in earnings and business prospects than larger, more established companies. International investments may involve additional risks, including, but not limited to, currency fluctuation, accounting methods, and geopolitical instability. Emerging markets involve heightened risks related to the same factors as well as increased volatility and potentially lower trading volume. Changes in laws, domestically or abroad, could result in the inability of the fund to operate as described in the prospectus. Narrowly focused investments may be subject to higher volatility.
*Income/Other and Total Distribution may include income, dividends, return of capital, or other forms of payment. Return of capital is considered a return of the investment principal and is not derived from net profits.
Past performance is no guarantee of future results. The performance data quoted here represents past performance. Current performance may be lower or higher than the performance data quoted above. Investment return and principal value will fluctuate, so that shares, when redeemed, may be worth more or less than their original cost.
Past distributions are not indicative of future distributions. There is no guarantee a distribution will occur. Shares of funds are bought and sold at market price (not NAV) and are not individually redeemed from the fund. Brokerage commissions will reduce returns.
