RWW (RevenueShares Financials) is also based on the S&P Financials index, but ranks the component stocks by revenues in order to determine the weightings. IYF (iShares Dow Jones U.S. Financials) and VFH (Vanguard Financials) are also other potential opportunities, and the funds simply track indexes outside of the S&P Financials index and thus have a different portfolio make-up and weightings.
It makes sense for the portfolio manager to delve into the details when examining sector funds of this sort, and determine which indexing methodology or methodologies, melds with their overall investment goals (i.e. “Do I believe that large cap banks will outperform, would I rather have evenly weighted exposure across the broad financials sector and not be necessarily concentrated in banks, etc.”).
In the trailing one year period, PFI has demonstrated the best performance, as it is down 5.38% versus FXO (-9.05%), RYF (- 12.43%), IYF (-14.35), VFH (-15.61%), XLF (-17.94%), and RWW (-23.23%).
PowerShares Dynamic Financials
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