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ETF Spotlight on PowerShares Dynamic Mid-Cap Growth (NYSEArca: PWJ), part of a weekly series.

Assets: $124.4 million

Objective: Tracks the Dynamic Mid-Cap Growth Intellidex. Companies are analyzed on four broad criteria: fundamental, valuation, timeliness and risk.

Holdings: Top holdings include Netflix (NASDAQ: NFLX), Tiffany & Co. (NYSE: TIF), Limited Brands (NYSE: LTD) and Dollar Tree Inc. (NASDAQ: DLTR).

What You Should Know

  • PWJ has been one of the top funds over the last three months, gaining 24%.
  • There are 75 holdings in the fund, which charges an expense ratio of 0.66%.
  • Mid-caps have a long record of outperformance. In time periods ranging from one to 10 years, mid-caps have outperformed large- and small-caps more than half the time. While past performance is not an indicator of what will happen in the future, it can serve as a guide.
  • Mid-caps often participate in much of a market’s upside. Relative to large-caps, they’ve often grabbed more than 120% of the upside.
  • Growth companies are those whose stocks are expected to grow faster than the market average.
  • Mid-caps can be riskier than large-caps, but the potential for payoff is better.

The Latest News

  • Mid-caps are hot right now: in the last six months, they’ve beaten out large-caps, which are up about 11% in that span. Mid-caps are up about 15%.
  • The growth category is faring better than other styles; mid-cap growth is up 18.5% in the last six months; large-cap growth is up 14.6%. In this category, even small-caps are getting beat: they’re up 17.3%.

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Mid-Cap ETFs

Disclosure: None

Source: Spotlight on PowerShares Dynamic Mid-Cap Growth ETF