A few years back, PowerShares made the gusty proclamation that it had the formula for beating key stock benchmark indices. Now, two of the company’s earliest ETFs have demonstrated enough of a track record to lend the company’s claim a little added muscle.

Three years after making their initial debut, the PowerShares Dynamic Market Portfolio (PWC) earned a Morningstar rating of 5 stars when compared to the 1,473 mutual funds in the U.S.-domiciled large-cap blend category. PWC had an annualized return of 21.96 percent and cumulative return of 80.57 percent, outperforming the benchmark S&P 500′s annualized return of 14.69 percent and cumulative return of 50.87 percent.

Furthermore, the PowerShares Dynamic OTC Portfolio (PWO) earned a Morningstar Rating of 3 stars within the universe of 818 U.S.-domiciled mid-cap growth mutual funds during the same period. PWO had an annualized return of 23.39 percent and cumulative return of 87.84 percent, outperforming the Nasdaq’s annualized return of 16.40 percent and cumulative return of 57.72 percent.

(All three-year annualized return figures are for the initial three-year period from inception through April 30, 2006.)

—–

Ron L. DeLegge is editor of www.etfguide.com.