What is particularly interesting is that we think most investors might automatically draw the conclusion that a “High Beta” portfolio would heavily lean toward Technology stocks just because that’s what most are accustomed to. But again, this is a data driven approach, that is examining actual betas in the marketplace on a trailing 12 month basis, and the data suggests, at least within the large cap universe (S&P 500), that Technology stocks have only been fifth sensitive sector in terms of beta, and worth a 11.46% weighting currently.
Even if investors choose not to purchase and use such ETF products at the moment, just examining the portfolio holdings from a name and sector standpoint periodically gives a good feel for what has happened, and what has shifted for interested stock pickers.
PowerShares S&P 500 High Beta Portolio
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