Additionally, the transition to the Dorsey Wright indices means cash can be raised in the sector ETFs when the index provide identifies a material, negative change in the market’s structure, a risk management tool that resonates with users of the Power Four Model. [A Different Approach to Consumer Staples]

Now backed by the Dorsey Wright indices, the PowerShares sector ETFs offer another advantage: The ability to raise allocations to mid- and small-cap stocks if those cap spectrums are displaying superior relative strength to large-caps.

Just look at the PowerShares DWA Consumer Staples Momentum Portfolio (NYSEArca: PSL). Cap-weighted consumer staples ETFs are usually dominated by large- and mega-cap stocks, but PSL currently devotes just 13.5% of its weight to large-caps, according to PowerShares data.

PSL, PXI and the PowerShares DWA Basic Materials Momentum Portfolio (NYSEArca: PYZ) have been among the top performers since the index changes.

Full List of PowerShares Sector ETFs Tracking DWA Indices