High RS Diffusion Index

August 12, 2015

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 8/11/15.

diffusion1 High RS Diffusion Index

The 10-day moving average of this indicator is 64% and the one-day reading is 60%.

This example is presented for illustrative purposes only and does not represent a past recommendation. The performance above is based on pure price returns, not inclusive of dividends or all transaction costs. Investors cannot invest directly in an index. Indexes have no fees. Past performance is not indicative of future results. Potential for profits is accompanied by possibility of loss.

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Best & Worst of Smart Beta in 2015

August 12, 2015

ETF.com takes a look at how Smart Beta ETFs have fared so far this year:

Smart-beta ETFs have been all the rage recently, attracting billions of dollars in inflows. These funds, which often share little in common other than the fact that they aim to outperform traditional, market-cap-weighted index funds, are extremely varied in their strategies. Unsurprisingly, just as varied as their strategies is their performance.

Since the start of 2015, there have been both big winners and big losers in the smart-beta space. That said, the top-performing smart-beta ETFs so far in 2015 do share some commonalities. Nine of the 10 funds on the list are related to either health care, Japan or Europe.

Our own PowerShares DWA Healthcare Momentum ETF (PTH) and PowerShares DWA NASDAQ Momentum ETF (DWAQ) receive some nice coverage in this article.

The relative strength strategy is NOT a guarantee. There may be times where all investments and strategies are unfavorable and depreciate in value. Dorsey Wright is the index provider for PDP and a suite of other Momentum ETFs at PowerShares. See www.powershares.com for more information.

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