PHDG’s underlying index, the S&P 500 Dynamic VEQTOR Index, has sharply outperformed the HFRX Global Hedge Fund Index this year and over the past 12 and 36 months, according to issuer data. [ETFs for a Market Pullback]
The rub with ETFs that offer hedges and downside protection is that these funds typically lag straightforward equity funds in over bull markets. However, this year’s 3% gain for the S&P 500 has been anything but easy. That has worked in PHDG’s favor as the ETF has posted a 4.4% year-to-date.
Investors are clearly warming to PHDG’s story. Last week, the ETF took in almost $21.5 million, a total surpassed by just three other PowerShares ETFs. For the year, PHDG has more than doubled size, a status reserved for a small amount of ETFs.
PowerShares S&P 500 Downside Hedged Portfolio
