PowerShares is at it again. On Thursday, the company will launch a new exchange-traded fund. This new ETF, PowerShares Zacks Small Cap Portfolio (PZJ), will be based on Zacks Small Cap Index. Zacks’ investment research tracks earnings surprises in small cap markets and based on 23 years of data found that stocks which consistently report positive earnings surprises outperform the market.
The new ETF will equal-weight assets representing about 10% of the small cap universe and will keep sector weighting in line with the Russell 2000.
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.