- PKW is an interesting option for a core U.S. equity holding, says Morningstar's Ben Johnson. The fund's portfolio is that of listed companies which have reduced net shares outstanding by 5% over the previous 12 months.
- The result is a portfolio of extremely profitable, highly cash-generative companies, with managements focused on shareholder value. 80% of the fund's assets are in firms which Morningstar deems to have an economic moat.
- The only tarnish, says Johnson, is a pricey expense ratio of 0.71%, but PowerShares recently launched an international version of the same fund (IPKW) - the price tag on that is somewhat lower, so there's hope pressure will mount to eventually cut the fee on PKW.
- Related ETFs: SYLD, FYLD
From other sites
at Nasdaq.com (Jan 2, 2015)
at Nasdaq.com (Dec 24, 2014)
at Nasdaq.com (Nov 25, 2014)
at MarketWatch.com (Apr 23, 2014)
at CNBC.com (Jan 4, 2014)
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