The W.E. Donoghue Power Index Family

The W.E. Donoghue Power Indexes are designed to accumulate long-term gains with a methodology that strategically switches between bullish and defensive postures. There are currently eight indexes in the W.E. Donoghue Power Index family:

W.E. Donoghue's Power Dividend Index (PWRDX)

W.E. Donoghue's Power Dividend International Index (PWRIDX)

W.E. Donoghue's Power Dividend Mid-Cap Index (PWRMDX)

W.E. Donoghue's Power Dividend Developed International Index (PWRIIDX)

W.E. Donoghue's Power Momentum Index (PWRMOX)

W.E. Donoghue's Power Treasury Index (PWRTRX)

W.E. Donoghue's Power Floating Rate Index (PWRFLX)

W.E. Donoghue's Power High Yield Index (PWRHYX)

The W.E. Donoghue Power Indexes embody certain key characteristics that distinguish them from other indexes that attempt to provide exposure to stocks with high dividend yields, including the following:

Well-Established Universe of Index Candidates

The indexes are predicated on an array of indexes published by S-Network. Any stock included in one of these S-Network indexes must meet all of the screens needed to qualify for the leading equity benchmark indexes.

Equal Weighting

Equal weighting avoids risky sector bets, and provides higher correlations to the relevant benchmarks. In PWRDX, PWRIDX and PWRMOX, all ten sectors are equally weighted, and in PWRMDX and PWRIIDX, the sector weights closely reflect those in S-Network benchmarks (i.e., sector-neutral equal weighting). The stocks within sectors are also equally weighted, avoiding dangerous momentum bias.

Tactical Asset Allocation

When in a bullish posture, the indexes allocate to a portfolio of stocks predicated on high-return, high-volatility indexes published by S-Network, including the ADR Dividend, Sector Dividend Dogs, International Dividend, Mid-Cap Dividend, and Large Cap Sharpe Ratio Indexes. When in a defensive posture, the indexes allocate instead to portfolios predicated on Treasury Bills and Bonds.

Entirely Rules-Based

The W.E. Donoghue Power Indexes depend on a clearly defined rules-based methodology, which are overseen by an impartial Index Committee. Neither discretion nor qualitative screens are used in compiling the indexes, and a pre-defined screening protocol assures a consistent, transparent and arms-length compilation process.