Historical sector allocations in the DWA Technical Leaders Index, used for The PowerShares DWA Momentum ETF (PDP), are shown below. This index includes the top 100 relative strength stocks, according to our rankings, from a universe of approximately 1,000 U.S. Mid and Large Cap stocks and is rebalanced quarterly.
This ETF (PDP) has outperformed The S&P 500 SPDR (SPY) since inception 85.75% compared to 75.90% (3/1/07 - 7/2/15, returns are inclusive of dividends). The Technical Leaders Index has no sector constraints, so theoretically it could have zero exposure to a given sector. In fact, that is currently the case with Energy as the index has zero exposure to this sector for the second straight quarter.
In recent years, exposure to Healthcare, Consumer Cyclicals, and Consumer Staples has been on the rise, while exposure to Utilities and Energy (among others) has generally been on the decline.
The relative strength strategy is NOT a guarantee. There may be times where all investments and strategies are unfavorable and depreciate in value. See www.powershares.com for more information. Dorsey Wright is the index provider for PDP. Source for performance: Yahoo! Finance.
