PKW is the largest of the three ETFs. It tracks the Buyback Achievers Index. To become eligible for inclusion in the index, a company must have repurchased at least 5% or more of its outstanding shares in the past year.
Dividend ETFs have been extremely popular in recent years with investors seeking income in a low-rate environment. However, companies electing to return capital to investors via share buybacks have been strong performers, as the returns of the buyback ETFs demonstrate. [Forget Dividend ETFs, ‘Float-Shrink’ Buyback Fund Trouncing Market]
PowerShares Buyback Achievers
Full disclosure: Tom Lydon’s clients own SPY.