Systematic Relative Strength

Each quarter, the PowerShares DWA Momentum Indexes are reconstituted. These indexes are designed to evaluate their respective investment universes (U.S Mid and Large-Cap equities, U.S. Small-Cap equities, Developed International Market equities, and Emerging Market equities) and build an index of stocks with superior relative strength characteristics. This quarter’s allocations are shown below.

PDP

DWAS

PIZ

PIE

Source: PowerShares, MSCI, and Standard & Poor’s

While capitalization-weighted indices will tend to have relatively stable sector/country allocations from one quarter to the next, our momentum indices can are designed to adapt to leadership changes. The charts below show allocations to two sectors/countries from each of our indices to give you a sense for some of the key areas of leadership and weakness.

PDP

DWAS

PIZ

PIE

The PowerShares DWA Momentum ETFs finished 2013 with $2.8 billion in assets. 2013 performance is shown below:

The performance numbers are pure price return, not inclusive of fees, dividends, or other expenses. Past performance is no guarantee of future returns. Potential for profit is accompanied by potential for loss. A list of all holdings for the trailing 12 months is available upon request.

See www.powershares.com for more information. The Dorsey Wright SmallCap Momentum Index is calculated by Dow Jones, the marketing name and a licensed trademark of CME Group Index Services LLC (“CME Indexes”). “Dow Jones Indexes” is a service mark of Dow Jones Trademark Holdings LLC (“Dow Jones”). Products based on the Dorsey Wright SmallCap Momentum IndexSM, are not sponsored, endorsed, sold or promoted by CME Indexes, Dow Jones and their respective affiliates make no representation regarding the advisability of investing in such product(s).

This entry was posted on Thursday, January 2nd, 2014 at 6:54 am and is filed under Markets, Momentum. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.