PowerShares Dorsey Wright ETFs Reach $1B

January 16, 2013

IndexUniverse highlights a significant milestone for the PowerShares Dorsey Wright Technical Leaders ETFs:

PowerShares, the No. 4 U.S. ETF firm by assets, today trumpeted the fact that the four ETFs it, along with technical-analysis guru Tom Dorsey, brought to market beginning almost six years ago together now have more than $1 billion in assets under management.

Almost three-quarters of those assets are in the oldest of the quintet, the $771 million PowerShares DWA Technical Leaders Portfolio (PDP), which outperformed the S&P 500 Index last year, PowerShares said today in a press release.

The four portfolios make use of the “point and figure” relative strength technical analysis Dorsey and his firm Dorsey Wright & Associates have championed for 25 years. The funds are part of the ETF world that is focused on so-called strategy indexing that amounts to an attempt to outperform—in a rules-based, quasi-active way—the broader market, as measured by capitalization-weighted indexes like the S&P.

The four funds, their launch dates, and their assets are as follows:

  • PowerShares DWA Technical Leaders Portfolio (PDP), March 2007, $771.0 million
  • PowerShares DWA Emerging Markets Technical Leaders Portfolio (PIE), December 2007, $275.9 million
  • PowerShares DWA Developed Markets Technical Leaders Portfolio (PIZ), December 2007, $132.3 million
  • PowerShares DWA SmallCap Technical Leader s Portfolio (DWAS), July 2012, $18.1 million

PDP, the granddaddy of the four funds, returned 17.87 percent last year compared with the S&P 500’s 16 percent, PowerShares said.

The Wheaton, Ill.-based fund company also said the fund has risen 14.93 percent in the past three years, compared with 10.86 percent for the S&P.

“It was a big deal when Dorsey Wright and Invesco PowerShares introduced the Technical Leaders ETFs beginning in 2007; it really gave investors a new way to implement relative strength strategies,” Tom Dorsey said in the press release.

“We believe that money managers will increasingly seek out well-designed alpha-seeking investments like the PowerShares DWA Technical Leaders ETFs that have demonstrated the potential to improve portfolio performance.”

We at Dorsey, Wright & Associates are very proud to have reached this significant milestone, and want to thank all of you, our clients, for your support of these robust relative strength-based ETF solutions.

See www.powershares.com for more information.  Past performance is no guarantee of future returns.

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High RS Diffusion Index

January 16, 2013

The chart below measures the percentage of high relative strength stocks that are trading above their 50-day moving average (universe of mid and large cap stocks.)  As of 1/15/13.

diffusion 01.16.13 High RS Diffusion Index

The 10-day moving average of this indicator is 95% and the one-day reading is 96%.

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