Powershares Energy ETF Sinks 3% On Oil Weakness

The PowerShares DWA Energy Momentum Portfolio (PXI) underperformed all other non-leveraged, non-inverse exchange traded products in the U.S. today on a percentage basis, producing a -3.16% one-day return and trailing the wider markets by a total of 3.16 percentage points.

Behind The Losses

PXI closed today at $41.74 per share, down $1.36 (-3.16%). Putting this move in context, the S&P 500 index — largely considered the most popular and useful benchmark for equity performance — closed down $0.01 (0.00%) on the day.

PXI’s trading volume today was a total of 28,136 shares, which was a decrease of 12% versus its average daily trading volume of 32,065. Rising trading volume generally an indicator of increased demand for a particular security, and is typically associated with a specific news event or trend that draws investors into or out of specific asset classes, or sectors or subsectors within those classes.

Including any dividends as well as today’s losses, PXI has now fallen a total of -4.07% year-to-date, versus a +2.42% gain in the S&P 500 during the same timeframe.

A Look Under The Hood

PowerShares DWA Energy Momentum Portfolio is an Equity-focused product issued by Invesco PowerShares. Its expense ratio of 0.60% makes it the #23 cheapest ETF among 37 total funds in the Energy Equities ETFs category.

PXI currently boasts $226.28M in assets under management (AUM), placing it #15 of 37 ETFs in its category, and #635 of 1922 total ETFs in the U.S. exchange traded universe.

The investment objective of the PowerShares DWA Energy Momentum Portfolio ETF is based on the Dorsey Wright Energy Technical Leaders Index. The Index is designed to identify companies that are showing relative strength (momentum), and is composed of at least 30 common stocks from the NASDAQ US Benchmark Index.

Given PXI’s big exposure to oil companies, and oil’s big (-2.5%) drop today, it’s not surprising that PXI was today’s worst performing major ETF.

PXI SMART Grade

PXI currently has an ETF Daily News SMART Grade of B (Buy), and is ranked #23 of 38 funds in the Energy Equities ETFs category.

For more information about this ETF, including full ratings, news, data, and more, please visit PXI’s ticker page.

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