5-Star ETFs Poised to Pop: PowerShares FTSE RAFI US 1000
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, the PowerShares FTSE RAFI US 1000 (NYS: PRF) has earned a coveted five-star ranking.
With that in mind, let's take a closer look at the PowerShares FTSE RAFI US 1000 and see what CAPS investors are saying about the ETF right now.
PowerShares FTSE RAFI US 1000 facts
Inception | December 2005 |
Total Assets | $1.06 billion |
Investment Approach | Designed to track the performance of the largest U.S. equities, selected based on the following four fundamental measures of firm size: book value, cash flow, sales, and dividends. |
Expense Ratio | 0.39% |
Dividend Yield | 2.2% |
1-Year / 3-Year / 5-Year Annualized Returns | 1.5% / 16.2% / 0.4% |
Top Holdings with High CAPS Rating (4 or 5 Stars) and Portfolio Weight | ExxonMobil (NYS: XOM) (3%) General Electric (NYS: GE) (2%) Pfizer (NYS: PFE) (1.6%) |
Alternatives* | iShares Russell 1000 Value Index (NYS: IWD) iShares Dow Jones Select Dividend Index (NYS: DVY) |
Sources: Morningstar and Motley Fool CAPS. *Alternatives are funds in the same Morningstar style box.
On CAPS, 88.5% of the 52 members who have rated PowerShares FTSE RAFI US 1000 believe the ETF will outperform the S&P 500 going forward. These bulls include gameguru and All-Star georcole, who is ranked in the top 10% of our community.
A few months ago, gameguru tapped the ETF as a rather steady selection: "Fundamentally-weighted index should be a tortoise-style overachiever for the long-term."
PowerShares FTSE US 1000 even sports a turnover ratio of just 9%. That's lower than other large-cap value ETF alternatives such as iShares Russell 1000 Value (24%) and iShares Dow Jones Select Dividend (18%).
CAPS All-Star georcole expands on the outperform argument:
A "fundamentally" different kind of index. It weighs the stocks in it's index according to fundamental values, such as sales, cash flow, book value and dividends. Over its short lifespan ... it has slightly beat the S&P. I am not looking to this pick to be my next blockbuster pick, but it should help my accuracy and give me a few points over time.
What do you think about PowerShares FTSE RAFI US 1000, or any other ETF for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional ETFs is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
Interested in another easy way to trackPowerShares FTSE RAFI US 1000?Add it to your watchlist.
At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of Pfizer. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.
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