PKW’s top sector allocations are consumer discretionary at 35.9%, financials at 19% and information technology at 16.4%. The concentration in consumer discretionary stocks has provided a lift. [Retail ETFs Making New All-Time Highs]
A related fund, TrimTabs Float Shrink ETF (NYSEArca: TTFS), is an actively managed fund that focuses on companies that are lowering the number of shares outstanding.
Paul Britt at Index Universe takes a look at the two ETFs which provide exposure to the buyback play, but differ greatly despite their common strategy.
“Believers in the buyback play offer a simple rationale: Who better than the firm’s own management would have a solid grasp of the company’s prospects in the competitive landscape and therefore its true value relative to its market price?” he wrote.
An ETF that also zeroes in on this theme is Guggenheim Insider ETF (NYSEArca: NFO). [ETFs That Focus on Share Buybacks]
PowerShares Buyback Achievers Portfolio
