PRF fundamental investment approach

The PowerShares FTSE RAFI US 1000 Portfolio (PRF) tracks the investment results of the FTSE RAFI US 1000 Index. The index selects stocks based on four fundamental measures—book value, cash flow, sales, and dividends. PRF, as defined by its investment objective, invests almost 90% of its net assets in the portfolio. PRF invests in a huge number of securities. As of August 17, 2015, it’s invested in 1,007 securities. Currently, it manages a net asset of 4.56 billion. It’s mainly invested in the finance, information technology, and consumer discretionary sectors.

Analyzing PowerShares’ Effort in Smart Investing

Top five holdings represent a major part of PRF

PRF’s top five holdings include ExxonMobil (XOM), JPMorgon Chase (JPM), AT&T (T), General Electric (GE), and Chevron (CVX). They account for almost 10% of its portfolio. It has a low expense ratio of 0.39%. Since its inception on December 19, 2005, the fund has given a return of 8.87%. That’s higher than its benchmark’s return of 7.79%.

SPLV has a large universe of low volatility stocks

A similar smart beta is the PowerShares S&P 500 Low Volatility ETF (SPLV). It’s based on the S&P 500 Low Volatility Index. The index chooses its components of 100 stocks from the S&P 500 (SPY). The stocks have exhibited low volatility in their price fluctuation over the past 12 months. The fund also follows a concentration policy that technically allows it to invest more than 25% of its net assets in a single industry or sector. Currently, it’s managing a portfolio of $4.91 billion. The fund has given an annual return of 7.42% with an expense ratio of 0.25%.

Latest articles

Broadcom (AVGO) stock fell ~8.5% after markets closed yesterday following the semiconductor giant's fiscal 2019 second-quarter earnings release. It missed analysts' revenue estimate and cut its fiscal 2019 revenue guidance by $2 billion to $22.5 billion due to sluggishness in its semiconductor solutions business.

The SPDR Gold Shares ETF (GLD), which tracks physical gold prices, has underperformed the broader markets year-to-date, rising just 4.4% compared to the S&P 500’s (SPY) gain of 15.9% as of June 14. The sentiment for gold, however, has been turning around.

Safe havens such as Treasuries and gold were back in favor on June 14 as stocks fell due to rising tensions in the Middle East, concerns over growth, and the looming threat of the US-China trade war. The tech-heavy Nasdaq Composite Index fell 0.67% in the first hour of trading.

Lululemon (LULU) stock rose 2.1% on June 13 in reaction to better-than-expected first-quarter results and an upgraded outlook for fiscal 2019 overall. The company's first-quarter adjusted EPS grew 34.5% to $0.74 on revenue growth of 20.4% to $782.32 million. Analysts had expected EPS of $0.70 and revenue of $755.31 million. Here's why the outlook got an upgrade.

14 Jun

IEA Again Slashes Its Oil Demand Growth Estimate

WRITTEN BY Rabindra Samanta

As of 4:40 AM Eastern Time today, US crude oil active futures were at $51.83, ~4% below their closing level in the previous week. If US crude oil prices stay at those levels today, they'll mark their third week of decline in five weeks.

14 Jun

Why Kimberly-Clark Stock May Stop Rising

WRITTEN BY Amit Singh

Kimberly-Clark (KMB) stock has risen 20.5% this year, boosted by the company’s better-than-expected sales and earnings during its last reported quarter. However, its stock could stop climbing. Here's why.

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