With Japan looking to finally triumph over deflation, Japanese companies may do well to trim some of their massive cash balances by way of buybacks and dividends. Japan is IPKW’s largest country weight at 34%. [New Japan ETF Worth a Look]
The NASDAQ International BuyBack Achievers Index (DRBXUS), IPKW’s underlying index, “is comprised of securities issued by corporations that have effected a net reduction in shares outstanding of 5% or more in its latest fiscal year,” according to PowerShares.
The 5% shares outstanding reduction is also used by PKW’s underlying index.
“Foreign corporations are now getting the QE-inspired ultra-low rates from both the European Central Bank (ECB) and the Bank of Japan (BOJ). Low volume notwithstanding, PowerShares International Buyback Achievers (IPKW) has been showing similar outperformance trends relative to comparable benchmarks; IPKW has gained more than proxies like the” MSCI EAFE Index over the past half year, according Gary Gordon, a registered investment advisor.
PowerShares International BuyBack Achievers Portfolio