As ETFs are the most popular trading and investment tools in the investment market, the known fund providers are the players that make diversity possible. Invesco PowerShares is a leading provider of ETFs with around 156 international and domestic ETFs in the market. It aims to outperform traditional benchmark indexes by providing investors an array of focused investment opportunities. PowerShares ETFs has penetrated into 45 sectors and industry groups to offer diversity.
Invesco PowerShares Capital Management LLC was founded in 2003 and it is one of the major providers of ETF with more than $9.15 billion in assets in the ETF market. It is the fourth largest ETF issuer in US.
The commonly used indexes by the PowerShares ETFs are the American Stock Exchange’s Intellidex Index, which is an equal dollar weighted index and FTSE RAFI Sector Index. PowerShares ETFs offer the dynamic series and FTSE RAFI series based on these indexes. The ETFs in the dynamic series are indexed with growth and valuation related parameters which attracts the GARP investors. Those in the FTSE RAFI series are more attractive for value investors as the ETFs are weighted based on book value, cash flow, dividend and sales.
The expense ratio of PowerShares ETFs ranges from 0.2% to 0.95% averaging at 0.58%. These can be purchased in round lots of 100 shares or smaller with minimum one share.
Some of the popular PowerShares ETFs includes the following:
- PowerShares QQQ (QQQ)
- PowerShares Dynamic Healthcare Services Sector Portfolio (PTJ)
- PowerShares High Yield Corporate Bond Portfolio (PHB)
- PowerShares Insured National Municipal Bond Portfolio (PZA)
- PowerShares Dynamic Food & Beverage Portfolio (PBJ)
- PowerShares Dynamic Telecommunications Services Portfolio (PTE)
- PowerShares Golden Dragon Halter USX China Portfolio (PGJ)
- PowerShares DB US Dollar Bullish Fund (UUP)
- PowerShares DB Agriculture Fund (DBA)
PowerShares ETFs include products from large-cap to small-cap companies. The small-cap lineup is extremely popular with assets of over $530 million and year-to-date net flows over $180 million. The small-cap ETFs taking over the ETF market includes:
- PowerShares S&P SmallCap Consumer Discretionary ( PSCD)
- PowerShares S&P SmallCap Consumer Staples (PSCC)
- PowerShares S&P SmallCap Energy (PSCE)
- PowerShares S&P SmallCap Financials (PSCF)
- PowerShares S&P SmallCap Health Care (PSCH)
- PowerShares S&P SmallCap Industrials (PSCI)
- PowerShares S&P SmallCap Information Technology (PSCT)
- PowerShares S&P SmallCap Materials (PSCM)
- PowerShares S&P SmallCap Utilities & Telecom Services (PSCU)
Recently PowerShares added nine new ETFs to its line. The ETF category already has competition from iShares and claymore ETFs but investors are speculating good annual performances from them. These nine ETFs are in the categories of corporate bonds, government bonds, dividend ETFs, preferred and hedged ETFs, active managed ETFs and convertible securities.
There are two unique ETFs also that PowerShares launched this year which are volatility weighted fund and beta-weighted fund, PowerShares S&P 500 Low Volatility Portfolio (SPLV) and PowerShares S&P500 High Beta Portfolio (SPHB). These PowerShares ETF offer attraction because of focus on low volatility and bullish tactics.
