Seeking Alpha

PowerShares' buyback fund in Morningstar spotlight

  • 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
Comments (0)
Be the first to comment
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs