Since large-cap materials stocks, particularly those hailing from the chemicals industry, are not often associated with momentum, PYZ currently allocates less than 21% of its weight to large-caps. Mid-caps are the story with this ETF, combining for nearly 56% of the fund’s weight.
Since large-cap materials stocks, particularly those hailing from the chemicals industry, are not often associated with momentum, PYZ currently allocates less than 21% of its weight to large-caps. Mid-caps are the story with this ETF, combining for nearly 56% of the fund’s weight. [Index Changes Bring Good Vibes for PowerShares ETFs]
That has been a positive in a year in which mid-caps, though still frequently overlooked, have delivered solid performances while trading at more compelling valuations to their large- and small-cap peers.
In another sign of PYZ’s recent strength just one of the ETF’s top-10 holdings, a group that combines for over 41% of the ETF’s weight, has traded lower over the past 90 days. That offender is FMC (NYSE: FMC).
There are looming catalysts that could help PYZ build on its gains, including earnings reports from six of its top-10 holdings over the next two weeks.
PowerShares DWA Basic Materials Momentum Portfolio
