PIV: Just One ETF: Getting Back to Quality With Focus on Low Debt, High ROE

Which single asset class are you most bullish (or bearish) about in the coming year? What ETF position would you choose to best capture that?

We view high financial quality equities, those with low debt and high and sustainable ROE, as an overlooked segment of the market and one of the best relative values available today. There are a handful of ETFs that can be used to capture quality, but none more specific than the PowerShares S&P 500 High Quality Portfolio ETF (PIV).

How does PIV fit into your overall investment approach? Tell us a bit about your strategy and goals.

Our approach incorporates elements of both philosophy and process into investing. This approach stems from a contrarian valuation-oriented philosophy and the belief that inefficiencies exist across asset classes and all other common-factor beta exposures. By overweighting those opportunities that are inexpensive and underweighting those that are expensive, we believe that investors can reduce risk and enhance return over the course of a full market cycle. (more)