ETF Trends
ETF Trends

The new PowerShares Value Line Timeliness Select Portfolio (PIV) offers access to the famous Value Line stock ranking system at a very reasonable price. The Value Line discipline in the form of an exchange traded fund makes great sense according to Mark Hulbert.

"That system, for those not aware of it, has one of the best long-term records of any stock selection system of which I am aware. Largely on the strength of that system, the Value Line Investment Survey has been at or near the top of the Hulbert Financial Digest’s ranking for long-term risk-adjusted performance for much of the last 25 years.

Consider the growth of a hypothetical $100,000 invested in a portfolio of the stocks ranked highest for Timeliness by Value Line’s stock ranking system, as calculated by the HFD. From June 30, 1980, which is when the HFD began monitoring the investment newsletter industry, to Nov. 30 of this year, this portfolio would have grown to $4.2 million. That works out to 15.8% on an annualized basis.

In contrast, that same $100,000 invested in the dividend-adjusted Dow Jones Wilshire 5000 index would have grown to $2.1 million, or 12.8% annualized."

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.