DWAQ’s 18.5% consumer discretionary weight is comparable to QQQ’s, but the former currently excludes some of the NASDAQ-100’s more popular discretionary names, such as Amazon (NasdaqGS: AMZN), Starbucks (NasdaqGS: SBUX) and Wynn Resorts (NasdaqGS: WYNN).
Not surprisingly, DWAQ’s correlation to QQQ is somewhat intimate. Over the past five years, the correlation between the two ETFs is 0.87 and over the past year it is 0.84, according to PowerShares data.
DWAQ’s correlation to well-known PowerShares health care is significantly less intimate though far from irrelevant. Over the past year, the ETF’s average correlation to the PowerShares Dynamic Biotechnology & Genome Portfolio (NYSEArca: PBE) and the PowerShares Dynamic Pharmaceuticals Portfolio (NYSEArca: PJP) is 0.7. [Uncovering an Alternative Nasdaq ETF]
PowerShares DWA NASDAQ Momentum Portfolio
Tom Lydon’s clients own shares of Apple and QQQ.