Said another way, though it is a passively managed ETF, PJP is also a smart beta fund. Its ability to exploit the momentum and quality factors, which has helped create the compelling combination of old school pharma and cutting-edge biotech names under the umbrella of one ETF, has rewarded investors.
Over the past year, PJP has soundly outpaced traditional health care ETFs along with pharma funds with lower allocations to biotech stocks. It is also noteworthy that PJP features a better than 30% weight to small-cap stocks and over the past 12 months, the ETF has surged almost 36% compared to 2% gain for the Russell 2000, which features a 14% health care weight.
Investors are aware of PJP’s advantages. The ETF has added almost $16.1 million in new assets over the past week. Year-to-date, only five PowerShares ETFs have added more new assets than PJP, according to issuer data.
PowerShares Dynamic Pharmaceuticals Portfolio