Happy 5th Birthday PDP!

Five years ago today, the PowerShares DWA Technical Leaders Portfolio (PDP) began trading on the NYSE.  PDP has outperformed the S&P 500 since inception and for each of the periods shown below!

pdp3 1 Happy 5th Birthday PDP!

The methodology:

The PowerShares DWA Technical Leaders Portfolio (Fund) is based on the Dorsey Wright Technical Leaders™ Index (Index). The Fund will normally invest at least 90% of its total assets in securities that comprise the Index. The Index includes approximately 100 U.S.-listed companies that demonstrate powerful relative strength characteristics. The Index is constructed pursuant to Dorsey Wright proprietary methodology, which takes into account, among other factors, the performance of each of the 3,000 largest U.S.-listed companies as compared to a benchmark index, and the relative performance of industry sectors and sub-sectors. The Index is reconstituted and rebalanced quarterly using the same methodology described above.

PowerShares DWA Technical Leaders NYSE Bell Ringing Ceremony 3/1/2007.

Click here for more information about PDP.

5 Responses to Happy 5th Birthday PDP!

  1. Greg Greenberg says:

    When I pull up Morningstar.com, I get a different number for the S&P 500, they use “S&P 500 TR (Price)” Total Return.

    On that basis, through 2/29/12, 5 year annualized
    PDP +2.48%
    S&P 500 +1.58%

    I know you posted compound numbers, but how did you get a negative number for the S&P 500? Did you leave out dividends?

  2. Andy Hyer says:

    Yes, the table in the post is just price only for PDP and the S&P 500. If you include dividends the performance of PDP is +11% compared to +6% for the S&P 500 (3/1/07-2/29/12).

  3. [...] of relative-strength weighting.  That’s how our Technical Leaders Index is set up and it’s performed pretty well.  Another common alternative is market capitalization weighting, which is the default method for [...]

  4. [...] —-this article was originally published 12/22/2012.  Evidence for the effectiveness of relative strength continues to pile up, most recently in the five-year performance of PDP. [...]

  5. [...] our office that PDP has $500 million in assets, rather than billions like some of its competitors, especially given its performance.  Perhaps value investing sounds more sophisticated and small-cap investing is racier, but [...]

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