Generating alpha, or excess returns above a benchmark, is no easy task considering the level of consistency needed to prove a unique investment has merit.
Most ETF investors have flocked to well-known benchmarks, such as the SPDR S&P 500 ETF Trust (NYSE: SPY), as core equity holdings in their portfolios. However, there are several strong fundamental or “smart beta” contenders that deserve a place on watch lists as well.
PowerShares Buyback Achievers Portfolio
PowerShares Buyback Achievers Fund (ETF) (NYSE: PKW) is based on the NASDAQ U.S. BuyBack Achievers Index, which selects U.S.-listed stocks that are reducing their share float by at least 5 percent in the trailing 12 months.
This ETF currently has $2.7 billion in total assets, 214 holdings and an expense ratio of 0.68 percent.
The PKW portfolio is dominated by consumer discretionary and technology names such as Apple Inc. (NASDAQ: AAPL) and Home Depot Inc (NYSE: p>
/www.benzinga.com/etfs/sector-etfs/15/02/5228246/4-alpha-seeking-etfs-to-add-to-your-watch-list alt=4 Alpha-Seeking ETFs To Add To Your Watch List>Full story available on Benzinga.com
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