SPHB does not allocate more than 1.63% of its weight to any of its 98 holdings, but the ETF does not skimp on higher beta sectors. Consumer discretionary and financials combine for almost 47% of the fund’s weight.
Additionally, SPHB’s 11.7% allocation to health care stocks is anything but docile as seven of the 10 names from that sector owned by the fund are biotech stocks.
“Overall, the stocks that make up SPHB are considered undervalued according to S&P Capital IQ research though, not surprisingly, have elevated risk profiles. The ETF also ranks favorably to S&P Capital IQ for its low expense ratio and tight bid/ask spread,” said S&P Capital IQ. [Understanding Smart Beta ETFs]
SPHB has outpaced the S&P 500 this year by about 200 basis points.
PowerShares S&P 500 High Beta Portfolio