To be included in the index, “a company must be incorporated in the U.S., trade on a US exchange and must have repurchased at least 5% or more of its outstanding shares for the trailing 12 months,” according to PowerShares.
Investors are taking note of PKW’s ability to outperform the broader market. The ETF has $610.6 million in assets under management, but raked in over $179 million of that total in May alone. That made the ETF the second-best asset gatherer in the PowerShares lineup last month. PowerShares is the fourth-largest U.S. ETF sponsor.
PKW allocates 54.4% of its weight to the consumer discretionary and financial services sectors while technology and health care names combine for another 28.4% of the fund’s weight. Top-10 holdings include Oracle (NadsaqGS: ORCL), American International Group (NYSE: AIG), Travelers (NYSE: TRV) and State Street (NYSE: STT).
PowerShares Buyback Achiever Portfolio
ETF Trends editorial team contributed to this article.