Powershares ETF - Am I taking the risk

Hello,

I diversified my entire portofolio in to powershares ETF (as they were cheaper compared to others) into energy, pharmaceutical, financial, retail and consumer staples. Is it very risky to diversity in the same family like this. Please post your opinions,

thanks,

Whether is the same family or not isn't a factor. It is ALWAYS the underlying investment that determines diversification. Go to Morningstar and use the portfolio X-Ray located there. Simply type in the tickers and it will map out your allocation and show you exactly where it is weighted.

http://portfolio.morningstar.com/NewPort/Free/InstantXRayDEntry.aspx?tsection=toolsxray&dt=0.7055475

Try it...you'll see what I mean.

pricespector,

Thanks for teaching me about the Portfolio X-ray. I have used Morningstar many times to screen funds, but had overlooked that handy tool.

It probably depends on the type of ETF you are interested in; I think you pay a bit extra in expense fees to have selection of stock baskets that Powershares provides. If you really think that Zack's stocks (PZI, PZJ) or Water (PHO) or other specific portfolios will beat the market or complement your portfolio, great. But if you're looking for generic large cap or small cap exposure, I would look at the holdings and the expenses, you might be paying more for the same thing.