Invesco PowerShares Capital Management has listed six new exchange-traded funds on the Nasdaq Stock Market based on Nasdaq indices, bringing to 27 the total roster of Invesco PowerShares E
Invesco PowerShares Capital Management has listed six new exchange-traded funds on the Nasdaq Stock Market based on Nasdaq indices, bringing to 27 the total roster of Invesco PowerShares ETFs currently listed on Nasdaq, including 12 launched this year.
The PowerShares Global Agriculture Portfolio seeks investment results that correspond generally to the price and yield performance, before fees and expense, of the Nasdaq OMX Global Agriculture Index, which aims to measure the overall performance of globally-traded securities of the largest and most liquid companies involved in agriculture and farming-related activities.
Like the other indices tracked by the new PowerShares ETFs, it is rebalanced quarterly using a modified market capitalisation-weighting methodology with consideration to trading volume and float-adjusted market capitalisation minimums.
The PowerShares Global Coal Portfolio tracks the Nasdaq OMX Global Coal Index, which measures the performance of securities of the largest and most liquid companies involved in the exploration for and mining of coal, and other related activities in the coal industry.
The PowerShares Global Steel Portfolio tracks the Nasdaq OMX Global Steel Index, which is designed to measure the performance of securities of the largest and most liquid companies involved in the manufacturing and storage of iron and steel products.
The PowerShares Global Gold and Precious Metals Portfolio tracks the Nasdaq OMX Global Gold and Precious Metals Index, which aims to measure the performance of securities of the largest and most liquid companies involved in mining-related activities for gold and other precious metals.
The PowerShares Global Progressive Transportation Portfolio tracks the Wilder Nasdaq OMX Global Energy Efficient Transport Index. ‘Improving the efficiency of moving people and goods worldwide through reduced fuel consumption and shortened transit times are just a few of the important issues progressive transportation companies are working to address,’ says Bruce Bond, president and chief executive of Invesco PowerShares.
‘The PowerShares Progressive Transportation ETF seeks to provide investors a convenient way to invest in a global portfolio of companies focused on sustainable transportation through the benefit-rich ETF structure.’
The Wilder Nasdaq OMX Global Energy Efficient Transport Index tracks the performance of a global group of companies focused on technologies for use of greener, more efficient sources of energy to initiate a transition toward cleaner, less costly and more efficient means of transportation.
The index comprises companies listed on global stock exchanges that are involved in alternative vehicles, rail and subway systems, sea, land, air and intermodal, and transport innovation.
The final new product is the PowerShares Global Biotech Portfolio, which tracks the Nasdaq OMX Global Biotechnology Index.
‘The Nasdaq ETF Market is designed specifically to ensure that new ETFs enjoy high levels of liquidity and visibility,’ says John Jacobs, an executive vice-president with Nasdaq OMX Global Financial Products. ‘Our relationship with Invesco PowerShares shows our commitment to ETFs and those who invest in them.’
Bond adds: ‘We are excited to expand our relationship with the Nasdaq OMX listing six new global equity portfolios that provide investors the convenience, transparency, and tax efficient benefits of the ETF structure.’
Nasdaq says it is the most liquid US market for ETFs, capturing 36.9 per cent of all ETF volume in August. Average daily matched share volume was 458 million, more than any other US exchange, although NYSE Arca has more listings.
Nasdaq says the focus of its ETF Market is the designated liquidity provider, a market-maker selected to maintain liquidity in qualified ETFs. Designated liquidity providers are required to maintain a higher standard of market quality measured by spread, depth, and time quoting at or near the national best bid and offer mark and receive price incentives to support ETFs during their period of initial listing, when the funds need to develop more active trading.
Nasdaq OMX is an index calculator and designer and creator of some of the world’s most popular ETFs. Nasdaq OMX indexes are the basis of 24 ETFs worldwide and the Nasdaq 100 Index alone is the basis of more than 600 investment products in some 36 countries.
Invesco PowerShares manages more than 100 US and international index-based and actively managed exchange-traded funds, with assets under management of some USD13.95bn at the end of June.