PowerShares Capital Management LLC launched 10 new exchange-traded funds (ETFs) based on FTSE RAFI fundamental indexes on The Nasdaq Stock Market.
The ETFs are the world’s first fundamentally weighted sector ETFs and comprised of nine sector funds and a small-mid cap fund. The names and NASDAQ ticker symbols for the new ETF portfolios are listed below:
Nasdaq:PRFM – PowerShares FTSE RAFI Basic Materials Sector PortfolioNasdaq:PRFG – PowerShares FTSE RAFI Consumer Goods Sector PortfolioNasdaq:PRFS – PowerShares FTSE RAFI Consumer Services Sector PortfolioNasdaq:PRFE – PowerShares FTSE RAFI Energy Sector PortfolioNasdaq:PRFF – PowerShares FTSE RAFI Financials Sector PortfolioNasdaq:PRFH – PowerShares FTSE RAFI Health Care Sector PortfolioNasdaq:PRFN – PowerShares FTSE RAFI Industrials Sector PortfolioNasdaq:PRFQ – PowerShares FTSE RAFI Telecommunications & Technology
Sector PortfolioNasdaq:PRFU – PowerShares FTSE RAFI Utilities Sector PortfolioNasdaq:PRFZ – PowerShares FTSE RAFI US 1500 Small-Mid Portfolio
Fundamental indexing selects, ranks and weights companies by financial fundamental measures of company size – including sales, cash flow, book price and dividends. This is a departure from traditional market-cap based index construction which may be susceptible to shifting investor preferences and expectations.
“We are very pleased to become a part of the NASDAQ Marketplace, one of the most efficient and best regulated stock exchanges in the world,” said Bruce Bond, President of PowerShares Capital Management. “Growing PowerShares’ family of ETFs by listing on the NASDAQ provides our funds with high visibility, competitive pricing and access to a wide pool of investors worldwide.”
NASDAQ has executed more than 50 percent of all ETF trade volume in the U.S in 2006.(1)
“For the first time ever, NASDAQ is exploring market enhancements specifically in connection with the listing and trading of ETFs, structured products, and other derivative securities on NASDAQ,” stated NASDAQ Executive Vice President John Jacobs. “Such market enhancements, together with many other significant benefits and advantages which NASDAQ affords the ETF community, will help make NASDAQ more than ever the most compelling U.S. market venue for listing, trading, and investing in ETFs and other innovative financial instruments.”