I do the “ETF of the Week” for MarketWatch every Thursday on Chuck Jaffe’s MoneyLife Show where I highlight big movers and disappointments within the exchange traded fund market.

This Thursday, I took a look at the PowerShares FTSE RAFI US 1000 Portfolio (NYSEArca: PRF). The fundamental RAFI indexing methodology helps investors diversify away from market-capitalization weighted index ETFs, which may help limit exposure to market speculation, bubbles and current fads.

PRF has a five-year annualized return of 10.9%, versus 7.8% for the S&P 500, according to Morningstar. [A Fundamentally-Weighted ETF Outperforming the Market]

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