PHDG’s underlying index, the S&P 500 Dynamic VEQTOR Index, has sharply outperformed the HFRX Global Hedge Fund Index this year and over the past 12 and 36 months, according to issuer data. The ETF charges just 0.39% per year, a small expense ratio by the standards of actively managed funds. [ETFs for Downside Protection]
PHDG holds derivatives along with equities with about 77% of the ETF’s equity allocation devoted to large-cap growth and value names. Top-10 holdings include Apple (NasdaqGM: AAPL) and Exxon Mobil (NYSE: XOM). PHDG is up 10% this year.
PowerShares S&P 500 Downside Hedged Portfolio
ETF Trends editorial team contributed to this post. Tom Lydon’s clients own shares of Apple.