Other momentum ETFs reside near new highs as well. The Powershares DWA Momentum Portfolio (NASDAQ: PDP), which utilizes technical analysis from Dorsey Wright and picks out stocks based on relative strength, was one of the momentum ETFs to reach record highs.
PDP tracks the Dorsey Wright Technical Leaders Index, which usually includes 100 Nasdaq-listed companies.
“The Index is constructed pursuant to Dorsey, Wright & Associates, LLC’s proprietary methodology, which takes into account, among other factors, the performance of each of the approximately 1,000 largest companies in the eligible universe as compared to a benchmark index, and the relative performance of industry sectors and sub-sectors,” according to PowerShares.
“The momentum trade is back after the strategy suffered one of the worst years on record in 2016 as investors sought safety in low volatility and later Trump-trade stocks. A clinging to winners has been on display throughout 2017 as technology shares kept building on gains amid mounting demand for growth stocks,” according to Bloomberg.
For more on Smart Beta ETFs, visit the Smart Beta Channel home page.