PowerShares filed paperwork this past week, seeking permission to bring to market two new ETFs and overhaul another.
The proposedPowerShares Fundamental Emerging Markets Local Debt Portfolio ETF would track the performance of the Citi RAFI Sovereign Emerging Markets Bond Index. The emerging market countries to be included in the portfolio would be evaluated based on gross domestic product, population, land area and energy use.
The proposedPowerShares S&P 500 High Dividend Portfolio [SPHD] would track the performance of the S&P 500 High Dividend Index. The underlying index is weighted by dividend yield and comprised of 75 securities, chosen from the S&P 500 Index, that have the highest dividend yields over the past 12 months.
Earlier this year, PowerShares filed paperwork detailing plans to create five actively managed, allocation-oriented ETFs using quantitative, rules-based strategies. One of the proposed products, the PowerShares Gold Allocation Portfolio would have held gold futures contracts and gold volatility futures contracts. The ETF provider has outlined its intent to completely alter the fund in a new filing with the SEC this past week. The new proposed actively managed dividend fund would be called the PowerShares Dividend Allocation Portfolio. The ETF would invest in a combination of the 50 highest dividend yielding stocks in the S&P 500 Index, VIX Index-related instruments, and various money market instruments.
StateStreet filed paperwork looking to issue three actively managed ETFs which would focus on short-term bonds. The first two proposed funds would hold investment-grade fixed- and floating rate, corporate- and government- issued bonds rated A- or higher by S&P or A3 or higher by Moody’s.
The proposed SPDR SSgA Ultra Short Term Bond ETF would have a portfolio with an effective duration of between three and nine months and a weighted-average maturity of between six and eighteen months.
The proposed SPDR SSgA Conservative Ultra Short Term Bond ETF would have a portfolio with an effective duration of four months or less and a weighted average maturity of between six and eighteen months.
The final proposed ETF, the SPDR SSgA Aggressive Ultra Short Term Bond ETF would hold investment-grade, fixed- and floating-rate, corporate- and government-issued bonds rated BBB- or higher by S&P or Baa3 or higher by Moody’s. The fund’s portfolio’s effective duration would be between six and twelve months and the weighted-average maturity would be between eighteen and thirty months.
The Scottrade subsidiary FocusShares has announced its plans to dissolve its lineup of fifteen ETFs that failed to attract significant assets. The provider has cited current market conditions, the inability of the the ETFs to attract significant market interest, future viability and growth prospects in their decision to liquidate the funds. The last day of trading for the following funds will be August 17.