PIE is currently tilted away from perceived momentum emerging markets and heavily allocated to two of the developing world’s most advanced and lowest beta countries: South Korea and Taiwan. Those countries combine for 39% of the ETF’s weight, indicating a momentum ETF can also credibly sport conservative credentials.

Sometimes forgotten in the discussions of PIE’s merits is the ETF’s sector composition. This is not the run-of-the-mill emerging markets ETF dominated by the energy, financial services and materials sectors or some combination of the three. In fact, those sectors combine for just 19.4% of PIE’s weight.

PIE is more levered to the emerging markets consumer story with a combined 34.3% weight to discretionary and staples stocks as well as being more exposed to the improving exports theme with a 16.1% tech weight.

PowerShares DWA Emerging Markets Momentum Portfolio

Tom Lydon’s clients own shares of EEM.

Subscribe to our free daily newsletters!
Please enter your email address to subscribe to ETF Trends' newsletters featuring latest news and educational events.