During the course of the current bull market, one increasingly prominent theme has been companies' willingness to spend and spend big on share repurchase programs. Reduce shares outstanding, increase earnings per share and everyone winners – namely management and investors, is how buyback thinking usually goes.
PowerShares Buyback Achievers Fund
That thinking has been a boon for exchange-traded funds such as the PowerShares Buyback Achievers Fund (ETF) (NYSE: PKW). Since March 10, 2009, the day after the post-financial crisis market bottom, PKW has returned nearly 280 percent compared to about 213 percent for the S&P 500.
Interestingly, PKW has also been slightly less volatile than the SPDR S&P 500 ETF Trust (NYSE: SPY) over that period, according to ETF Replay data.
Year-to-date, things have been much different as PKW entered Wednesday with a 4.5 percent loss, or 50 percent worse than the 2015 showing turned in by SPY. However, it could be time to give ETFs like PKW and its newer rival, the SPDR S&P ...
/www.benzinga.com/trading-ideas/long-ideas/15/09/5825730/why-it-might-be-time-to-look-at-buyback-etfs-again alt=Why It Might Be Time To Look At Buyback ETFs Again>Full story available on Benzinga.com
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