PowerShares Dynamic RetailPMR

Morningstar Rating

ETF Research and Analysis

by Robert Goldsborough

Suitability
Investors seeking exposure to discretionary consumer spending and specifically to the retail sector can consider PowerShares Dynamic Retail ETF PMR. As a sector-specific exchange-traded fund, PMR should be viewed as a tactical Read more

Bull Case

By including everything from online merchants to rental companies and traditional department stores, this fund offers exposure to a range of retailers with a single transaction.

History has shown that cyclical stocks tend to rally several months in advance of economic recovery. Some (risk-tolerant) investors may view this ETF as a high beta way to ride future market rebounds.

This fund's distinctive weighting methodology translates into more diverse exposure to the retail industry. Read more

Bear Case

Aside from being heavily dependent on disposable household income and consumer spending, the firms in this portfolio are also susceptible to changes in demographics and fickle consumer tastes.

High gas prices may crowd out other forms of consumer spending. Read more