PowerShares touts assets and performance of PDP and other Dorsey Wright-linked ETFs.
PowerShares, the No. 4 U.S. ETF firm by assets, today trumpeted the fact that the four ETFs it, along with technical-analysis guru Tom Dorsey, brought to market beginning almost six years ago together now have more than $1 billion in assets under management.
Almost three-quarters of those assets are in the oldest of the quintet, the $771 million PowerShares DWA Technical LeadersPortfolio (NYSEArca: PDP), which outperformed the S&P 500 Index last year, PowerShares said today in a press release.
The four portfolios make use of the “point and figure” relative strength technical analysis Dorsey and his firm Dorsey Wright & Associates have championed for 25 years. The funds are part of the ETF world that is focused on so-called strategy indexing that amounts to an attempt to outperform—in a rules-based, quasi-active way—the broader market, as measured by capitalization-weighted indexes like the S&P.
The four funds, their launch dates, and their assets are as follows:
- PowerShares DWA Technical LeadersPortfolio (NYSEArca: PDP), March 2007, $771.0 million
- PowerShares DWA Emerging Markets Technical Leaders Portfolio (NYSEArca: PIE), December 2007, $275.9 million
- PowerShares DWA Developed Markets Technical Leaders Portfolio (NYSEArca: PIZ), December 2007, $132.3 million
- PowerShares DWA SmallCap Technical Leaders Portfolio (NYSEArca: DWAS), July 2012, $18.1 million
PDP, the granddaddy of the four funds, returned 17.87 percent last year compared with the S&P 500’s 16 percent, PowerShares said.
The Wheaton, Ill.-based fund company also said the fund has risen 14.93 percent in the past three years, compared with 10.86 percent for the S&P.
“It was a big deal when Dorsey Wright and Invesco PowerShares introduced the Technical Leaders ETFs beginning in 2007; it really gave investors a new way to implement relative strength strategies,” Tom Dorsey said in the press release.
“We believe that money managers will increasingly seek out well-designed alpha-seeking investments like the PowerShares DWA Technical Leaders ETFs that have demonstrated the potential to improve portfolio performance.”