The PowerShares DWA Technical Leaders Fund(PDP Quote) is a little over a year old, and I believe it is delivering on its promise and backtest.
Gimmicky sounding ETFs are often very quickly dismissed from being serious investment choices, and successful backtests are often greeted with skepticism (I am guilty of that one sometimes) -- but in this case, both of those sentiments would have been wrong.
As you can see from the chart, PDP has outperformed the S&P 500, its benchmark index, by 10 percentage points, again that is just after 13 months of trading. That is a meaningful amount of alpha for a broad-based proxy in such a short time, and is consistent with the backtest. While others may be dubious of this, it is tough to be too critical of a fund that does what it says it's going to do.
 |
| Click here for larger image. |
Recent Comments
| Dow Jones | S&P 500 | NASDAQ | 10-Year Note | |
|---|---|---|---|---|
| 10,468.63 | 1,108.17 | 2,172.45 | 32.44 |
Oil *
79.72
|
|
UP
123.79
|
UP
12.54
|
UP
27.85
|
UP
0.43
|
10 Yr
3.24%
SPDR Gold
117.29
|
|
+1.20%
|
+1.14%
|
+1.30%
|
+1.34%
|
Data delayed 20 minutes |
Connect with TheStreet