Exchange-traded fund provider Invesco PowerShares Capital Management has announced plans to list two new ETFs, the PowerShares Nasdaq-100 BuyWrite Portfolio and PowerShares Nasdaq Internet
Exchange-traded fund provider Invesco PowerShares Capital Management has announced plans to list two new ETFs, the PowerShares Nasdaq-100 BuyWrite Portfolio and PowerShares Nasdaq Internet Portfolio, on the Nasdaq Stock Market on June 12.
‘The PowerShares Nasdaq-100 BuyWrite Portfolio provides a convenient, lower-cost way for investors to access a covered call strategy on the 100 largest non-financial companies listed on the Nasdaq,’ says Invesco PowerShares president and chief executive Bruce Bond.
‘Investors may use this product to complement the PowerShares QQQ in their portfolios,’ he adds, referring to the firm’s ETF that tracks the Nasdaq 100 Index.
‘Additionally, the PowerShares Nasdaq Internet Portfolio represents one of the broadest ETF internet funds available to investors, and delivers the added benefits inherent to the ETF structure.’
The PowerShares Nasdaq-100 BuyWrite Portfolio is based on the CBOE Nasdaq-100 BuyWrite Index, which measures the total rate of return of a Nasdaq 100 covered call strategy. This consists of holding a portfolio indexed to the Nasdaq 100, and selling a succession of one-month at-the-money Nasdaq 100 call options.
The CBOE Nasdaq 100 BuyWrite Index assumes that call options are written on the third Friday of each month, held until their expiration, and exercised options are settled in cash.
A modified market capitalisation index, the PowerShares Nasdaq Internet Portfolio is based on the Nasdaq Internet Index, which is designed to track the performance of the largest and most liquid US-listed companies engaged in internet-related businesses. It is rebalanced quarterly and companies that are involved in internet-related services, internet software, website services and e-commerce.
Invesco PowerShares offers more than 100 US, international and active exchange-traded funds with assets under management of USD13.86bn at the end of April.
