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VIDEOTime to Grab a Piece of This PIE ETF?
By
The ETF Professor Sep 07, 2010 1:40 pm
The PowerShares DWA Emerging Markets Technical Leaders ETF is a great play and is still flying under the radar.
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For all the fanfare that emerging markets ETFs get, there are still a few that fly under the radar. One such example is an interesting play, the PowerShares DWA Emerging Markets Technical Leaders ETF (PIE).
Nearly three years old, PIE tracks the Dorsey Wright Emerging Markets Technical Leaders Index, which follows about 100 stocks.
About half of PIE's allocation is to large caps, and mid caps get about 40% of the ETF's weight with the rest going to small caps.
Explaining why PIE doesn't grab a lot of press is difficult. After all, the volume (more than 241,000 shares per day average) and the assets under management (almost $144 million) are sufficient and certainly don't put the ETF in danger of disappearing.
The ETF is a fine idea for the investor who can't decided on a country-specific ETF because PIE devotes double-digit allocations to Malaysia, South Korea, and Indonesia, and will give you decent exposure to China and Mexico, among others.
At over 18%, financials lead the way in terms of sector allocation, followed by consumer staples (16.4%), industrials (14.4%), and consumer discretionary (12%).
PIE isn't all that volatile compared to other emerging markets fare, but to be really bullish, you'll want to see the ETF string together several closes above $16. If you're willing to hold PIE for a year, you could rip another 20% out of it from here.
Below, find some more great ETF and market content from Benzinga:
Kabul Bank: When They Don’t Fear the Regulators Enough to Even Hide the Abuses
By William Black
The Obama Tax Cuts
By Donald Susswein
ETFs to Watch September 7, 2010
By The ETF Professor
No positions in stocks mentioned.
