PowerShares rolled out five new ETFs onto the AMEX on Friday, December 1. The new funds include the first "preferred stock" ETF, a class of income-producing shares that operate somewhere in the gray zone between stocks and bonds. The new funds are:
The new funds are:
PowerShares Financial Preferred (NYSEARCA:PGF)
PowerShares Dynamic Large Cap (PJF)
PowerShares Dynamic Mid-Cap (PJG)
PowerShares Dynamic Small-Cap (PJM)
PowerShares Value Line Industry Rotation (NYSEARCA:PYH)
The expense ratios range from 60-70 basis points.
For more, see our initial coverage of the launch.
Macromarkets and Claymore Securities launched the first "MACRO" securities onto the AMEX on Thursday, November 30. The new MACROs are unlike any other financial product on the market today.
The funds are tied to the price of crude oil, and include an "Up" MACRO (AMEX: UCR) and a "Down" MACRO (AMEX: DCR). But unlike, say, the U.S. Oil Fund (AMEX: USO), the new MACROs don't actually hold oil futures or other securities. Instead, they are linked together as a "pair" -- as the value of UCR goes up, the value of DCR goes down, and assets are transferred from one to another. The funds work like equitized, unleveraged futures contracts; or as one executive described it, "performance without ownership. The funds charge 1.6 percent in expenses.
First Trust Value Line Equity Allocation Fund
The latest edition to the “Value Line” family of ETFs, First Trust Advisors announced plans to launch this new ETF onto the AMEX under the ticker symbol “FVI.” The fund will track an equal-weighted index of 150 companies that Value Line’s proprietary methodology believes have the potential to outperform the market. The fund is equally weighted between the six main style categories (large-cap growth, large-cap value, mid-cap growth, etc.), with the 25 top-ranking stocks for each style making it into the index.
Competing Value Line funds are available from PowerShares. Note: This fund replaces a closed-end-fund, the First Trust/Value Line & Ibbotson Equity Allocation Fund, which will be liquidated on December 8, 2006.
The prospectus is available here.
From the editor of Index Universe: The pace of change in exchange-traded funds is startling. Just trying to keep up with all the latest developments is a struggle. Starting this week, IndexUniverse.com will try to simplify things a bit with our new "ETF Watch" feature. Posted each Thursday, ETF Watch will review all the latest ETF filings and listings posted to the Securities and Exchange Commission over the past week. We'll include brief descriptions, tickers, links to prospectuses - in short, everything you need to stay on top of the latest developments.
To add perspective, we'll also keep a running tally of new ETFs launched and filed on a monthly basis, with updated asset counts for each of the newly listed funds.