Thursday, August 22, 2013

SmallCaps Insulated from Currency Turmoil

Since the late June low, we have mentioned a top ranking fund several times but have yet to highlight it.  It handled that decline very well and also outperformed on the July rebound, ranking in the top 10 for most of the month.  It fell out of the top 25 in early August but is back at 5th place today having held a bottom from 2 days ago.   With a high 8.84 Green Diamond Reward Rating, the Powershares S&P SmallCap Industrials Portfolio (PSCI) gets there with a low 2.74 Red Diamond Risk Rating.  That wide risk reward spread is only one of the pretty attributes on its ETFGsm Tearsheet.

Right below those diamonds are PSCI’s Quant scores showing 70s or better across the board. Technicals edge out sentiment on the Behavioral side and cash flow and yield drive the Fundamental Score with earnings and book value lagging.  Its chart does not excite until you look at more than the past month.  It has outperformed in downturns and even more on the rallies.  Tracking the industrial subset of the S&P SmallCap 600 Index, the fund is up more than 21% this year after gaining more than 16% in 2012 so it is a hot segment after lagging in 2011.  You can see all that under the Performance tab at the top of the Tearsheet.  We have also added pages showing Product Info and Fund Flows for most products although not yet for this one.

Back to the Summary page, PSCI’s pie charts are all red, like most sector funds, until you scroll down to the industry and sub industry pies.  Scrolling over a slice will make it pop out so it is easy to read.  We get a lot of compliments on our holdings screen where you can see all of its 84 constituents without leaving the page.  Back at the top you can PDF the Summary Page for your due diligence file or to give to clients.

With 100% exposure to the US Dollar, PSCI is unshaken by the waves hitting the international currency markets struggling to assess Fed liquidity.  Small caps also tend to have more of their business in the US providing further insulation.  A low risk, high reward name that is outperforming, PSCI is the kind of idea for which you come to ETF Global®, and we thank you for that. Please send any questions to

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