Time To Grab A Piece Of This PIE?
For all the fanfare that emerging markets ETFs get, there are still a few that fly under the radar. One such example is an interesting play, the PowerShares DWA Emerging Markets Technical Leaders ETF (NYSE: PIE).
Nearly three years old, PIE tracks the Dorsey Wright Emerging Markets Technical Leaders Index, which follows about 100 stocks.
About half of PIE's allocation is to large-caps and mid-caps gets about 40% of the ETF's weight with the rest going to small-caps.
Explaining why PIE doesn't grab a lot of press is difficult. After all, the volume (over 241,000 shares per day average) and the assets under management (almost $144 million) are sufficient and certainly don't put the ETF in danger of disappearing.
The ETF is a fine idea for the investor that can't decided on a country-specific ETF because PIE devotes double-digit allocations to Malaysia, South Korea and Indonesia and will give you decent exposure to China and Mexico, among others.
At over 18%, financials lead the way in terms of sector allocation, followed by consumer staples (16.4%), industrials (14.4%) and consumer discretionary (12%).
PIE isn't all that volatile compared to other emerging markets fare, but to be really bullish, you'll want to see the ETF string together several closes above $16. If you're willing to hold PIE for a year, you could rip another 20% out of it from here.
