mslasky

PowerShares New Sector ETFs

The existence of fundamental ETF's will increase demand for those equities with "value" characteristics. Increased demand, constant supply, increased prices. So in the short term (say 3 yrs?) the price will rise for equities with good fundamentals, thus tending to decrease their value, as their prices rise. I see this as more of a trading opportunity! Their 45 year back-testing is impressive, but leaves out the impact these new fund's themselves will have on the price/value differentials that did exist in the past.