PowerShares makes the case for increasing exposure to Europe generally and to PIZ in particular:
The DWA Developed Markets Technical Leaders Index has produced a strong track record of outperformance relative to major market cap-weighted European equity market indices and the MSCI EAFE. The Euro Stoxx 50, FTSE Developed Europe, and iShares MSCI EMU are benchmarks for European equity performance based on ETF volumes and flows, while the MSCI EAFE is regarded as an institutional benchmark for Developed World equity investment excluding the U.S. The tabel below highlights the ouperformance of the DWA Technical Leaders Index. The Index has produced a higher annualized return compared to its peers over the past five years outright and also on a risk adjusted basis given its higher Sharpe Ratio.
PIZ currently has 75% exposure to Europe:
Read the whole report here.
A relative strength strategy is NOT a guarantee. There may be times where all investments and strategies are unfavorable and depreciate in value. Past performance is no guarantee of future returns. Potential for profits is accompanied by possibility of loss. Dorsey Wright & Associates is the index provider for The PowerShares DWA Developed Markets Momentum ETF (PIZ).
