Exchange traded funds using intelligent indexing or so-called smart beta strategies have come into the limelight this year as investors have poured over $45 billion into such ETFs and that was as of the end of October.
While “smart beta” may appear to be a new buzz-phrase, many of the ETFs that subscribe to non-market capitalization-weighted strategies have been around for a while. The PowerShares DWA Developed Markets Momentum Portfolio (PIZ) is a prime example.
PIZ follows the same relative strength methodology as other well-known PowerShares ETFs that track Dorsey Wright indices, such as the PowerShares DWA Emerging Markets Momentum Portfolio (PIE) and the PowerShares DWA SmallCap Momentum Portfolio (DWAS) , one of this year’s most successful small-cap ETFs. [Use This ETF for Rising Rates Protection]
PIZ has already surged 26% this year, but this ex-U.S. developed markets play may have more upside to come.
Past performance is no guarantee of future returns. See www.powershares.com for more information.