PowerShares DWA SmallCap Momentum Portfolio (DWAS)
PowerShares has a real winner in its small-cap ETF. The fund has been trading since July 19 of 2012, and in that time it has outperformed both the broader market and the small-cap sector. Though not an index fund, this one is extremely broad, dividing its money between 200 small companies at any given time. Holdings are distributed across the entire economy, but healthcare, technology and consumer cyclicals are particularly well represented. Growth will be king in 2014, so make sure you are holding companies at that point on the growth curve where the magic happens. Fund investors will likely find a lot to like here, but stock pickers should know about this fund as well, as one can usually find an interesting idea or two by looking at the fund's top ten holdings.
One year total return: 30.35%
Chart courtesy of stockcharts.com
Julian Close has been a professional business writer since the first day of the twenty-first century, having written for PRA International and the United Nations Department of Peacekeeping. He graduated from Davidson College in 1993 and received a Masters of Arts in Teaching from Mary Baldwin College in 2011. He became a stockbroker in 1993, but now works for Fresh Brewed Media and uses his powers only for good. You can see closing trades for all Julian's long and short positions and track his long term performance via twitter: @JulianClose_MIC.