PIE is among the current holdings in the Global Technical Leaders portfolio.
Morningstar senior fund analyst Patricia Oey explains the basics of how the ETF works:
Momentum strategies seek to capitalize on the phenomenon that securities that have recently outperformed will continue to do so in the short run, and those that have underperformed will continue to lag. This passively managed fund tends to perform best, relative to the cap-weighted MSCI Emerging Markets Index benchmark, when there is a large difference between the best- and worst-performing emerging-markets countries. This fund also does not have some of the drawbacks of a cap-weighted index fund–namely, a consistent, significant exposure to government-controlled entities and global cyclical firms.
The Global Technical Leaders portfolio invests in the four PowerShares DWA Momentum ETFs, including PIE, and can also hold cash. The strategy ranks the four ETFs on a relative strength basis.