Six of DWAQ’s top 10 holdings are healthcare stocks. The ETF’s second-largest sector weight is 22.4% to technology, which includes a 2.9% allocation to Apple.
Like the other PowerShares ETFs that track Dorsey Wright’s relative strength-based indices, DWAQ is passively managed. However, the relative strength methodology lends itself to increased flexibility in weighting and component selection compared to traditional cap-weighted ETFs.
QQQ’s consumer discretionary weight is nearly 400 basis points higher than DWAQ’s and the latter takes a notably different approach to that sector than the former. For example, DWAQ does not own Amazon (NasdaqGS: AMZN), Priceline (NasdaqGS: PCLN) and Starbucks (NasdaqGS: SBUX), opting for mid- and small-cap discretionary names, such as Papa John’s (NasdaqGS: PZZA), Sonic (NasdaqGS: SONC) and Jack in the Box (NasdaqGS: JACK).
DWAQ is up 12.6% this year and has double in price in less than five years.
PowerShares DWA NASDAQ Momentum Portfolio
