ETF Spotlight: PowerShares Dynamic Mid-Cap Growth (PWJ) | ETF Trends

ETF Spotlight on PowerShares Dynamic Mid-Cap Growth (NYSEArca: PWJ), part of a weekly series.

Assets: $124.4 million

Objective: Tracks the Dynamic Mid-Cap Growth Intellidex. Companies are analyzed on four broad criteria: fundamental, valuation, timeliness and risk.

Holdings: Top holdings include Netflix (NASDAQ: NFLX), Tiffany & Co. (NYSE: TIF), Limited Brands (NYSE: LTD) and Dollar Tree Inc. (NASDAQ: DLTR).

What You Should Know

  • PWJ has been one of the top funds over the last three months, gaining 24%.
  • There are 75 holdings in the fund, which charges an expense ratio of 0.66%.
  • Mid-caps have a long record of outperformance. In time periods ranging from one to 10 years, mid-caps have outperformed large- and small-caps more than half the time. While past performance is not an indicator of what will happen in the future, it can serve as a guide.
  • Mid-caps often participate in much of a market’s upside. Relative to large-caps, they’ve often grabbed more than 120% of the upside.
  • Growth companies are those whose stocks are expected to grow faster than the market average.
  • Mid-caps can be riskier than large-caps, but the potential for payoff is better.

The Latest News

  • Mid-caps are hot right now: in the last six months, they’ve beaten out large-caps, which are up about 11% in that span. Mid-caps are up about 15%.
  • The growth category is faring better than other styles; mid-cap growth is up 18.5% in the last six months; large-cap growth is up 14.6%. In this category, even small-caps are getting beat: they’re up 17.3%.

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.