ETF Research and Analysis
by Bradley KaySuitability
PowerShares Dynamic Large Cap Growth PWB invests in the higher-growth and pricier half of the U.S. large-cap markets, but with a twist. This fund does not merely seek to mirror the market, but instead uses a variety of quantitative factors to select the large-growth U. Read more
PowerShares Dynamic Large Cap Growth PWB invests in the higher-growth and pricier half of the U.S. large-cap markets, but with a twist. This fund does not merely seek to mirror the market, but instead uses a variety of quantitative factors to select the large-growth U. Read more
Bull Case
This ETF is very cheap for alpha-seeking funds even if it looks pricey relative to traditional passive indexes.
A low correlation with the value side of the market makes this fund a worthwhile supplement to a value-heavy portfolio.
The index's complicated sorting and weighting methodology creates a representative proxy for the large-growth universe. Read more
Bear Case
The fairly opaque Intellidex model may not actually produce better risk-adjusted returns, in which case the higher expense ratio of this ETF will hold back returns relative to passive index funds.
Over long periods of historical returns, stocks that are cheaper by measures such as price/earnings and price/book ratios have outperformed more-expensive growth stocks.
Giant-cap stocks help tamp down volatility but also mean this fund will not shoot ahead of the market. Investors looking for riskier, ultra-high-growth exposure should look for smaller market caps. Read more
Our Pick in Utilities ETFs
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