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Powershares Fundamental Pure Small Core

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PowerShares Fundamental Pure Small Core Portfolio (PRFZ) is an exchange-traded fund (ETF) that tracks the performance of the Russell 2000 Index, which is an index composed of small-capitalization U.S. equities. However, PRFZ is not a standard small-cap ETF, as it uses a fundamentally weighted indexing approach to select and weight its holdings.

In a traditional market-capitalization-weighted index, such as the Russell 2000 Index, the weight of each company in the index is proportional to its market capitalization, which is the total value of all of the company's outstanding shares of stock. This means that larger companies have a greater influence on the index's performance than smaller companies.

In contrast, PRFZ uses a fundamentally weighted indexing approach, which weights each company in the index based on financial metrics such as book value, cash flow, and sales, rather than market capitalization. The goal of this approach is to create a more diversified and balanced portfolio that is less influenced by the performance of a small number of large companies.

PRFZ seeks to replicate the price and yield performance of the Russell 2000 Index, before fees and expenses, by investing in the stocks that make up the index in proportion to their fundamental weights. The ETF has an expense ratio of 0.35%, which is slightly higher than some other small-cap ETFs.

As of March 31, 2023, PRFZ has approximately $6.5 billion in assets under management and holds over 1,500 individual stocks. The ETF's top holdings include companies such as Enphase Energy, Etsy, and Veeva Systems.

It is important to note that investing in ETFs, like PRFZ, involves risks, including the possible loss of principal. investors should carefully consider the investment objectives, risks, charges, and expenses of the ETF before investing. This information can be found in the ETF's prospectus, which should be read carefully before investing.