Additionally, PBS has a large tilt toward smaller companies or many potential takeover targets down the line. Specifically, the portfolio’s market capitalization weights include micro-caps 11.3%, small-caps 22.1%, mid-caps 24.6%, large-caps 27.1% and mega-caps 15.0%.

Additionally, PBS follows a factor-based or smart-beta index, which selects and weights companies based on specific criteria, including price momentum, earnings momentum, quality, management action and value. The weighting methodology may help explain the ETF’s bigger tilt toward smaller companies.

PowerShares Dynamic Media Portfolio

For more information on the media industry, visit our media category.

Max Chen contributed to this article.