Small-Cap Segment Outperforms as Markets Rebound

ETF Trends publisher Tom Lydon discussed PowerShares DWA SmallCap Momentum Portfolio (DWASon this week’s “ETF of the Week” podcast with Chuck Jaffe on the MoneyLife Show.

Investors may have seen value in the small-cap category after smaller stocks underperformed large-caps in the post-election rally.

Small-caps also regained their appeal as investors renewed their outlook on the Trump administration’s pro-growth agenda.

Previously, momentum in U.S. markets had stalled on uncertainties over President Trump’s ability to push through his pro-growth agenda.

DWAS identifies small-cap firms with positive relative strength characteristics to follow companies with strong forward momentum. It has a growth-oriented strategy: 57.5% small-cap growth, 26.1% small-cap blend, and 14.0% small-cap value.

Sectors include health care 22.6%, information technology 21.2%, financials 20.3%, industrials 15.1%, consumer discretionary 11.1%, materials 3.7%, consumer staples 3.6%, and telecom 0.8%.

Click here to listen to the podcast.