ETF Research and Analysis

by Patricia Oey
PowerShares DWA Emerging Markets Momentum Portfolio PIE is one of the few funds to offer a momentum strategy in emerging markets. Momentum investing is based on the premise that securities that have recently outperformed   Read more 

Bull Case

Long-term growth drivers for the emerging markets include infrastructure spending and rising domestic consumption.
Emerging-markets stocks can provide diversification benefits, as they are exposed to different macro trends and foreign currencies.
Investors in this fund may also benefit in the long run from appreciating emerging-markets currencies. Read more 

Bear Case

Emerging-markets equities are very volatile, especially during periods of high uncertainty in global markets.
Momentum strategies can significantly underperform during periods of high volatility.
Momentum strategies are more difficult to execute in emerging markets, where transaction costs are higher and liquidity is lower. Read more 

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