Invesco PowerShares, a provider of exchange-traded funds, has signed a licensing agreement covering nine Standard & Poor’s SmallCap 600 Sector Indexes.
Invesco PowerShares anticipates listing new ETF portfolios based on the indexes on 7 April 2010.
The indexes cover consumer discretionary, consumer staples, energy, financials, healthcare, industrials, information technology, materials and utilities.
"Small-cap companies have historically outperformed large-cap companies during the initial stage of an economic recovery," says Ben Fulton, Invesco PowerShares managing director of ETFs. "Our licensing agreement with S&P Indices will allow us to introduce a family of nine small-cap sector ETFs that provide unique access for investors interested in hedging and sector weighting strategies."
The index series is designed to measure the overall performance of small-cap stocks in the GICS sectors that meet specific inclusion criteria to ensure that they are investable and financially viable.
The indexes are a subset of the S&P SmallCap 600 Index, which is a float-adjusted, market-capitalisation-weighted index reflecting the US small-cap market. Companies must have a market capitalisation between USD250m and USD1.2bn at the time of their addition to the indexes.