While the dominant form of indexing remains cap-weighted-indexing (for now), companies like PowerShares have revolutionized the concept of indexing by bringing to market a number of ETFs based on alternatively-weighted Indexes. Among those ETFs currently in the market that offer an alternative approach to weighting an index is our own line-up of relative strength-weighted Technical Leaders ETFs (PDP, PIE, and PIZ).
All of our Technical Leaders ETFs are having a very good 2010. In particular, the PowerShares DWA Emerging Markets Technical Leaders ETF (PIE) is well ahead of its benchmark this year.
A review of the top country allocations for PIE provides insight into how it has been able to stand apart from its benchmark (large overweights in Malaysia, and Indonesia, while being underweight China).
More information about PIE can be found at www.powershares.com. Past performance is no guarantee of future returns.
*FXI, EIDO, EWM, EWY are used for reference.
