Posted on 04/09/2012
With the new quarter comes a newly rebalanced PowerShares DWA Technical Leaders Index (PDP). Current sector weights of PDP compared to that of the S&P 500 are shown below:
Currently, our biggest overweight is Consumer Cyclicals and our biggest underweight is Energy. Consumer Cyclicals have, in fact, been making up a larger and larger part of PDP in recent years while our exposure to Energy has been going the opposite direction.
PDP is designed to overweight the strong areas of the market and to underweight the weak areas. Using IYC as a proxy for Consumer Cyclicals and IYE as a proxy for Energy, Consumer Cyclicals have outperformed Energy in each of the past four years and are again ahead so far in 2012.
2012 is off to a great start with PDP up 14.81%---outperforming the S&P 500 which is up 11.24% (updated through 4/4/2012).
For more information, see www.powershares.com.