PowerShares bases its “fundamental” methodology on available book value, cash flow averaged over the last five years, sales averaged over the last five years and total dividends distributed over the last five years. [An ETF With a Value Proposition]
“Financially less sophisticated investors—those who are attracted to active growth funds with high expense ratios—experience the greatest return gaps over time,” notes Research Affiliates.
Although it is a strategic beta ETF, PXLV is reasonably priced at 0.39% per year, well-below the average cost of an actively managed mutual fund.
PowerShares Fundamental Pure Large Value Portfolio
