Value Line ETF

Powershares is a relatively new player in ETF market but every month they are adding new Exchange Traded Funds (ETF) in their product line. Yesterday they inaugurated another called the PowerShares Value Line Timeliness Select Portfolio (PIV) which will enable individuals to invest effortlessly in the stocks ranked highly by the Value Line Investment Survey.

Value Line constructs its Timeliness rankings so that there are always 100 highest-ranking stocks in its portfolio. Every week it makes changes to this group. So an individual trying to follow exactly the Value Line ranking system would need to construct a big portfolio and undergo lots of transactions.

PIV will be constructed out of the 50 stocks from this group of 100 that also have Value Line's highest "safety" and "technical" ranks. Furthermore, PIV's portfolio will be updated quarterly. The less number of stocks take away some of the advantages of diversification but less frequent transactions will add more value to PIV by keeping its expense ratio low.

PIV ended its first day +0.01 up at $15.60.