PowerShares Files For PowerShares DWA SmallCap Technical Leaders Portfolio ETF
PowerShares has filed paperwork with the SEC for a “PowerShares DWA SmallCap Technical Leaders Portfolio” ETF. The PowerShares DWA SmallCap Technical Leaders Portfolio (the “Fund”) seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Dorsey Wright SmallCap Technical Leaders Index. The Dorsey Wright SmallCap Technical LeadersTM Index is designed to identify stocks that have powerful relative strength characteristics. Strictly in accordance with its existing guidelines and mandated procedures, the Index Provider includes companies in the Underlying Index pursuant to a proprietary methodology that is designed to identify small capitalization companies listed on the NYSE, NYSE Amex or the NASDAQ that demonstrate powerful relative strength characteristics. Using a starting universe of approximately 2,000 of the smallest stocks selected from a broader set of 3,000 of the largest U.S. common stocks, the Index Provider ranks these securities using a proprietary relative strength methodology that is based upon each security’s market performance. The Index Provider identifies approximately 200 of these stocks to include in the Underlying Index. The stocks that the Index Provider includes receive a modified equal weighting. The Underlying Index is rebalanced quarterly.
They did not specify a trading symbol or expense ratio in the initial filing.
Principal Investment Strategies
The Fund generally will invest at least 90% of its total assets in equity securities of small capitalization companies that comprise the Underlying Index. Strictly in accordance with its existing guidelines and mandated procedures, Dorsey Wright & Associates (“Dorsey Wright” or the “Index Provider”) includes securities in the Underlying Index pursuant to a proprietary selection methodology that is designed to identify companies that demonstrate powerful relative strength characteristics. The Index Provider determines a company’s relative strength characteristics based on that company’s market performance. The Index Provider selects approximately 200 companies for inclusion in the Underlying Index from a small-cap universe of approximately 2,000 of the smallest U.S. companies selected from a broader set of 3,000 companies. As of December 31, 2011, the Underlying Index included securities of companies with a market capitalization range of between approximately $172 million and $3.6 billion. The Fund generally invests in all of the securities comprising its Underlying Index in proportion to their weightings in the Underlying Index.
Concentration Policy. The Fund will concentrate its investments (i.e., invest more than 25% of the value of its net assets) in securities of issuers in any one industry or group of industries only to the extent that the Underlying Index reflects a concentration in that industry or group of industries. The Fund will not otherwise concentrate its investments in securities of issuers in any one industry or group of industries.
For the complete filing click: HERE