Market Overview

Time To Grab A Piece Of This PIE?

Share:
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.

Posted-In: Long Ideas Specialty ETFs Emerging Market ETFs Technicals Global Trading Ideas ETFs

 

Related Articles (PIE)

View Comments and Join the Discussion!

Exelon Announces New Appointments

Mylan Completes Acquisition of Bioniche Pharma (MYL)