Invesco PowerShares

Powershares
Subsidiary
Industry Asset Management
Founded 2002 (2002)
Headquarters Wheaton, Illinois, United States
Parent Invesco
Website www.invescopowershares.com

Invesco PowerShares is a boutique investment management firm based near Chicago which manages a family of exchange-traded funds or ETFs.[1][2] The company has been part of Invesco, which markets the PowerShares product, since 2006.

Created in 2002, PowerShares funds use quantitative indices as a benchmark.[3] There are currently over 120 PowerShares ETFs.[4]

PowerShares cover and emulate a variety of market indices; for example, the PowerShares QQQ (NASDAQ: QQQ) is designed to replicate the NASDAQ-100 Index. The PowerShares QQQ is one of the most widely traded shares on the stock market, according to writer John J. Murphy.[5][4]

PowerShares ETFs also cover the commodities market, diversified and tiny or microcap stocks.[6] For instance, the PowerShares DB Commodity Index Tracking Fund, or DBC, which it developed with Deutsche Bank, allows for individual investors to invest in commodities by means of its ETF.[7] The PowerShares DB Oil Fund (DBO) deals with the crude oil index.[6]

History

The company was founded in 2002 as PowerShares Capital Management.

In 2006 PowerShares Capital Management was acquired by Invesco so that Invesco could get access to the ETF business and the company is renamed Invesco PowerShares.

In 2006, PowerShares offered an exchange traded fund in the private equity market in a "diversified fashion", although a report in BusinessWeek suggested that analysts thought that the fund was "something people can live without."[8]

In 2005, PowerShares developed a fund to allow customers to invest in "tiny companies" or microcaps; according to a report in the New York Times, the Powershares Zacks Micro Cap Portfolio owns 330 stocks which follow the index of Zacks Investment Research, and the PowerShares ETF re-evaluates these tiny companies weekly, removing those which "do not pass muster".[2] In addition, the microcap ETF rebalances the entire index each quarter, according to the report.[2]

In 2010, the firm was involved in a trademark infringement dispute with Select Sector SPDR Trust over whether trading symbols, or tickers, could be considered as brand names.[9]

In 2013 the William F. Sharpe Award for ETF Product of the Year went to the PowerShares Senior Loan Portfolio ETF NYSE: BKLN.[10][11]

Selected funds

Access - Active

Access - Broad Market Beta

Access - Buybacks

Access - Global region and country

Access - Small Cap Sector

Access - Specialty Sector

Access - Strategies

Commodities and Currencies - Commodity Optimum Yield

Commodities and Currencies - Currencies

Equity-based resources - Alternative Energy

Equity-based resources - Commodity Equities

Factor Driven - Broad-Based Momentum

Factor Driven - High Beta

Factor Driven - High Quality

Factor Driven - Low Volatility

Factor Driven - Sector-Based Momentum

Fundamentals Weighted - Fundamentals Weighted Equity

Fundamentals Weighted - Fundamentals Weighted Fixed Income

Income - Equity Income

Income - Fixed Income

Income - Hybrid Income

Quantitative - Dynamic Broad-Market

Quantitative - Dynamic Industry

See also

References

  1. ↑ Judith Rehak (November 9, 2005). "A new approach to microcaps". The New York Times. Retrieved 2012-06-13. PowerShares, a Chicago ETF boutique... While still an index fund, the PowerShares ETF takes a more active approach. It re-evaluates companies weekly, removing those that do not pass muster, and rebalances the entire index four times a year.
  2. 1 2 3 "PowerShares Puts the Kibosh on 6 Oddly-Named ETFs". US News. August 22, 2008. Retrieved 2012-06-13.
  3. ↑ The ETF Book by Richard A. Ferri, Don Phillips 2009 ISBN 0-470-53746-9 page 121
  4. 1 2 Trading ETFs by Deron Wagner 2012 Bloomberg Press ISBN 1118109139 page 25
  5. ↑ The Visual Investor by John J. Murphy 2009 ISBN 0471144479 page 255
  6. 1 2 Commodity Strategies by Thomas J. Dorsey 2007 ISBN 0470126310 page 150
  7. ↑ Understanding Exchange-Traded Funds by Archie M. Richards 2007 ISBN 0071484914 page 230
  8. ↑ Staff writer (October 19, 2006). "PowerShares to Launch Private Equity Traded Fund". The New York Times. Retrieved 2012-06-13. ... PowerShares is rolling out its first private equity exchange-traded fund ... the fund is already drawing skepticism from analysts, who told BusinessWeek that “it’s something people can live without.”
  9. ↑ Jason Zweig (August 14, 2010). "Can a Bum Ticker Kill A Portfolio?". Wall Street Journal. Retrieved 2012-06-13. A little-noticed lawsuit says a lot about how investments are marketed. Late last month, Select Sector SPDR Trust sued Invesco PowerShares for trademark infringement....
  10. ↑ "ETF Award Winners Announced (BKLN, PHDG)". Benzinga.
  11. ↑ PowerShares Senior Loan Portfolio Recognized with William F. Sharpe Award for ETF Product of the Year Yahoo Finance
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