The fund is expected to trade under the ticker DWAS and, according to Invesco, represents the first U.S. small-cap exchange-traded fund (ETF) based on the concept of relative strength ranking. Technical Leaders are companies identified by the DWA selection methodology that possess strong relative strength characteristics compared to their peers and industry benchmarks. Relative strength is a quantitative measure of a stock’s performance in relation to the rest of the market, expressed generally in percentage form.
The PowerShares DWA SmallCap Technical Leaders Portfolio (DWAS) is based on the Dorsey Wright SmallCap Technical Leaders Index. The fund generally will invest at least 90% of its total assets in equity securities of small capitalization companies that comprise the underlying index. The Index includes approximately 200 companies pursuant to a proprietary selection methodology that is designed to identify companies that demonstrate powerful relative strength characteristics from a small-cap universe of approximately 2,000 U.S.-listed companies. The fund is rebalanced and reconstituted quarterly.
“We are pleased to once again partner with Dorsey, Wright & Associates for the PowerShares DWA SmallCap Technical Leaders Portfolio (DWAS), providing investors with a full suite of Technical Leaders ETFs based on the firm’s respected research.” said Ben Fulton, Invesco PowerShares managing director of global ETFs. “The DWA Technical Leaders strategy, based on relative strength, is widely followed by advisers and professional asset managers.”
More information is here.