PowerShares Files For 10 New Small Cap ETFs

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January 19, 2010 12:04pm ETF BASIC NEWS NYSE:XLBS

comingsooonPowerShares has filed for 10 new small cap ETFs. The new funds will cover a myriad of different sectors including Consumer Discretionary, Consumer Staples, Energy, Financials, Health Care


, Industrials, Information Technology, Materials, Telecommunication Services. and Utilities. We have included information on each fund below:

POWERSHARES S&P SMALLCAP CONSUMER DISCRETIONARY PORTFOLIO

Investment Objective 

The Fund seeks investment results that correspond (before fees and expenses) generally to the price and yield performance of the index called the S&P SmallCap 600 Consumer Discretionary Index (the “Underlying Index”).

Principal Investment Strategies 

The Fund will normally invest at least 80% of its total assets in common stocks of consumer discretionary companies. The Fund will normally invest at least 90% of its total assets in common stocks that comprise the Underlying Index. The Underlying Index is comprised of common stocks of U.S. consumer discretionary companies that are principally engaged in the businesses of providing consumer goods and services that are cyclical in nature, including retail, automotive, leisure and recreation, media and real estate.  The Underlying Index is compiled, maintained and calculated by Standard & Poor’s.  The Fund’s 80% investment policy noted above is non-fundamental and requires 60 days’ prior written notice to shareholders before it can be changed. 

The Underlying Index is reconstituted and rebalanced on an as-needed basis and the Fund, using an “indexing” investment approach, attempts to replicate, before fees and expenses, the performance of the Underlying Index. The Adviser (as defined below) seeks correlation over time of 0.95 or better between the Fund’s performance and the performance of the Underlying Index; a figure of 1.00 would represent perfect correlation. The Fund generally will invest in all of the stocks comprising the Underlying Index in proportion to their weightings in the Underlying Index.

 The Underlying Index is a diversified index designed to measure the overall performance of stocks in the Consumer Discretionary sector.  The Underlying Index is a subset of the S&P SmallCap 600 Index, which is a float adjusted market capitalization weighted index reflecting the U.S. small-cap market.  The S&P SmallCap 600 Index includes companies with a market capitalization range of between $250 million and $1.2 billion.

 Concentration Policy.  The Fund will invest 25% or more of the value of its total assets in securities of issuers in an industry or group of industries to the extent that the Underlying Index concentrates in an industry or group of industries.

POWERSHARES S&P SMALLCAP CONSUMER STAPLES PORTFOLIO

Investment Objective

 The Fund seeks investment results that correspond (before fees and expenses) generally to the price and yield performance of the index called the S&P SmallCap 600 Consumer Staples Index (the “Underlying Index”).

Principal Investment Strategies

 The Fund will normally invest at least 80% of its total assets in common stocks of consumer staples companies. The Fund will normally invest at least 90% of its total assets in common stocks that comprise the Underlying Index. The Underlying Index is comprised of common stocks of U.S. consumer staples companies that are principally engaged in the businesses of providing consumer goods and services that have non-cyclical characteristics, including tobacco, textiles, food and beverage, and non-discretionary retail.  The Underlying Index is compiled, maintained and calculated by Standard & Poor’s.  The Fund’s 80% investment policy noted above is non-fundamental and requires 60 days’ prior written notice to shareholders before it can be changed.

 The Underlying Index is reconstituted and rebalanced on an as-needed basis and the Fund, using an “indexing” investment approach, attempts to replicate, before fees and expenses, the performance of the Underlying Index. The Adviser seeks correlation over time of 0.95 or better between the Fund’s performance and the performance of the Underlying Index; a figure of 1.00 would represent perfect correlation. The Fund generally will invest in all of the stocks comprising the Underlying Index in proportion to their weightings in the Underlying Index.

 The Underlying Index is a diversified index designed to measure the overall performance of stocks in the Consumer Staples sector.  The Underlying Index is a subset of the S&P SmallCap 600 Index, which is a float adjusted market capitalization weighted index reflecting the U.S. small-cap market.  The S&P SmallCap 600 Index includes companies with a market capitalization range of between $250 million and $1.2 billion.

 Concentration Policy.  The Fund will invest 25% or more of the value of its total assets in securities of issuers in an industry or group of industries to the extent that the Underlying Index concentrates in an industry or group of industries.

POWERSHARES S&P SMALLCAP ENERGY PORTFOLIO

Investment Objective

 The Fund seeks investment results that correspond (before fees and expenses) generally to the price and yield performance of the index called the S&P SmallCap 600 Energy Index (the “Underlying Index”).

Principal Investment Strategies

The Fund will normally invest at least 80% of its total assets in common stocks of energy companies. The Fund will normally invest at least 90% of its total assets in common stocks that comprise the Underlying Index. The Underlying Index is comprised of common stocks of U.S. energy companies that are principally engaged in the business of producing, distributing or servicing energy related products, including oil and gas exploration and production, refining, oil services, pipeline, and solar, wind and other non-oil based energy.  The Underlying Index is compiled, maintained and calculated by Standard & Poor’s.  The Fund’s 80% investment policy noted above is non-fundamental and requires 60 days’ prior written notice to shareholders before it can be changed.

The Underlying Index is reconstituted and rebalanced on an as-needed basis and the Fund, using an “indexing” investment approach, attempts to replicate, before fees and expenses, the performance of the Underlying Index. The Adviser seeks correlation over time of 0.95 or better between the Fund’s performance and the performance of the Underlying Index; a figure of 1.00 would represent perfect correlation. The Fund generally will invest in all of the stocks comprising the Underlying Index in proportion to their weightings in the Underlying Index.

The Underlying Index is a diversified index designed to measure the overall performance of stocks in the Energy sector.  The Underlying Index is a subset of the S&P SmallCap 600 Index, which is a float adjusted market capitalization weighted index reflecting the U.S. small-cap market.  The S&P SmallCap 600 Index includes companies with a market capitalization range of between $250 million and $1.2 billion.

Concentration Policy.  The Fund will invest 25% or more of the value of its total assets in securities of issuers in an industry or group of industries to the extent that the Underlying Index concentrates in an industry or group of industries.

POWERSHARES S&P SMALLCAP FINANCIALS PORTFOLIO

Investment Objective

 The Fund seeks investment results that correspond (before fees and expenses) generally to the price and yield performance of the index called the S&P SmallCap 600 Financials Index (the “Underlying Index”).

Principal Investment Strategies

The Fund will normally invest at least 80% of its total assets in common stocks of financial service companies. The Fund will normally invest at least 90% of its total assets in common stocks that comprise the Underlying Index.  The Underlying Index is comprised of common stocks of U.S. financial service companies that are principally engaged in the business of providing services and products, including banking, investment services, insurance and real estate finance services.  The Underlying Index is compiled, maintained and calculated by Standard & Poor’s.  The Fund’s 80% investment policy noted above is non-fundamental and requires 60 days’ prior written notice to shareholders before it can be changed.

The Underlying Index is reconstituted and rebalanced on an as-needed basis and the Fund, using an “indexing” investment approach, attempts to replicate, before fees and expenses, the performance of the Underlying Index.  The Adviser seeks correlation over time of 0.95 or better between the Fund’s performance and the performance of the Underlying Index; a figure of 1.00 would represent perfect correlation.  The Fund generally will invest in all of the stocks comprising the Underlying Index in proportion to their weightings in the Underlying Index.

The Underlying Index is a diversified index designed to measure the overall performance of stocks in the Financials sector.  The Underlying Index is a subset of the S&P SmallCap 600 Index, which is a float adjusted market capitalization weighted index reflecting the U.S. small-cap market.  The S&P SmallCap 600 Index includes companies with a market capitalization range of between $250 million and $1.2 billion.

Concentration Policy.  The Fund will invest 25% or more of the value of its total assets in securities of issuers in an industry or group of industries to the extent that the Underlying Index concentrates in an industry or group of industries.

POWERSHARES S&P SMALLCAP HEALTH CARE PORTFOLIO

Investment Objective

The Fund seeks investment results that correspond (before fees and expenses) generally to the price and yield performance of the index called the S&P SmallCap 600 Health Care Index (the “Underlying Index”).

Principal Investment Strategies

The Fund will normally invest at least 80% of its total assets in common stocks of healthcare companies. The Fund will normally invest at least 90% of its total assets in common stocks that comprise the Underlying Index. The Underlying Index is comprised of common stocks of U.S. healthcare companies. These are companies that are principally engaged in the business of providing healthcare-related products and services, including biotechnology, pharmaceuticals, medical technology and supplies, and facilities.  The Fund’s 80% investment policy noted above is non-fundamental and requires 60 days’ prior written notice to shareholders before it can be changed.

The Underlying Index is reconstituted and rebalanced on an as-needed basis and the Fund, using an “indexing” investment approach, attempts to replicate, before fees and expenses, the performance of the Underlying Index. The adviser seeks correlation over time of 0.95 or better between the Fund’s performance and the performance of the Underlying Index; a figure of 1.00 would represent perfect correlation. The Fund generally will invest in all of the stocks comprising the Underlying Index in proportion to their weightings in the Underlying Index.

The Underlying Index is a diversified index designed to measure the overall performance of stocks in the Health Care sector.  The Underlying Index is a subset of the S&P SmallCap 600 Index, which is a float adjusted market capitalization weighted index reflecting the U.S. small-cap market.  The S&P SmallCap 600 Index includes companies with a market capitalization range of between $250 million and $1.2 billion.

Concentration Policy.  The Fund will invest 25% or more of the value of its total assets in securities of issuers in an industry or group of industries to the extent that the Underlying Index concentrates in an industry or group of industries.

POWERSHARES S&P SMALLCAP INDUSTRIALS PORTFOLIO

Investment Objective

The Fund seeks investment results that correspond (before fees and expenses) generally to the price and yield performance of the index called the S&P SmallCap 600 Industrials Index (the “Underlying Index”).

Principal Investment Strategies

The Fund will normally invest at least 80% of its total assets in common stocks of industrial companies. The Fund will normally invest at least 90% of its total assets in common stocks that comprise the Underlying Index. The Underlying Index is comprised of common stocks of U.S. industrial companies. These are companies that are principally engaged in the business of providing industrial products and services, including engineering, heavy machinery, construction, electrical equipment, aerospace and defense and general manufacturing.  The Underlying Index is compiled, maintained and calculated by Standard & Poor’s.  The Fund’s 80% investment policy noted above is non-fundamental and requires 60 days’ prior written notice to shareholders before it can be changed.

The Underlying Index is reconstituted and rebalanced on an as-needed basis and the Fund, using an “indexing” investment approach, attempts to replicate, before fees and expenses, the performance of the Underlying Index. The adviser seeks correlation over time of 0.95 or better between the Fund’s performance and the performance of the Underlying Index; a figure of 1.00 would represent perfect correlation. The Fund generally will invests in all of the stocks comprising the Underlying Index in proportion to their weightings in the Underlying Index.

The Underlying Index is a diversified index designed to measure the overall performance of stocks in the Industrials sector.  The Underlying Index is a subset of the S&P SmallCap 600 Index, which is a float adjusted market capitalization weighted index reflecting the U.S. small-cap market.  The S&P SmallCap 600 Index includes companies with a market capitalization range of between $250 million and $1.2 billion.

Concentration Policy.  The Fund will invest 25% or more of the value of its total assets in securities of issuers in an industry or group of industries to the extent that the Underlying Index concentrates in an industry or group of industries.

POWERSHARES S&P SMALLCAP INFORMATION TECHNOLOGY PORTFOLIO

Investment Objective

The Fund seeks investment results that correspond (before fees and expenses) generally to the price and yield performance of the index called the S&P SmallCap 600 Information Technology Index (the “Underlying Index”).

Principal Investment Strategies

The Fund will normally invest at least 80% of its total assets in common stocks of information technology companies.  The Fund will normally invest at least 90% of its total assets in common stocks that comprise the Underlying Index.  The Underlying Index is comprised of common stocks of U.S. information technology companies.  These are companies that are principally engaged in the business of providing information technology-related products and services, including computer hardware and software, Internet, electronics and semiconductors, and communication technologies.  The Underlying Index is compiled, maintained and calculated by Standard & Poor’s.  The Fund’s 80% investment policy noted above is non-fundamental and requires 60 days’ prior written notice to shareholders before it can be changed.

The Underlying Index is reconstituted and rebalanced on an as-needed basis and the Fund, using an “indexing” investment approach, attempts to replicate, before fees and expenses, the performance of the Underlying Index.  The adviser seeks correlation over time of 0.95 or better between the Fund’s performance and the performance of the Underlying Index; a figure of 1.00 would represent perfect correlation.  The Fund generally will invest in all of the stocks comprising the Underlying Index in proportion to their weightings in the Underlying Index.

The Underlying Index is a diversified index designed to measure the overall performance of stocks in the Information Technology sector.  The Underlying Index is a subset of the S&P SmallCap 600 Index, which is a float adjusted market capitalization weighted index reflecting the U.S. small-cap market.  The S&P SmallCap 600 Index includes companies with a market capitalization range of between $250 million and $1.2 billion.

Concentration Policy.  The Fund will invest 25% or more of the value of its total assets in securities of issuers in an industry or group of industries to the extent that the Underlying Index concentrates in an industry or group of industries.

POWERSHARES S&P MATERIALS PORTFOLIO

Investment Objective

The Fund seeks investment results that correspond (before fees and expenses) generally to the price and yield performance of the index called the S&P SmallCap 600 Materials Index (the “Underlying Index”).

Principal Investment Strategies

The Fund will normally invest at least 80% of its total assets in common stocks of basic materials companies. The Fund will normally invest at least 90% of its total assets in common stocks that comprise the Underlying Index. The Underlying Index is comprised of common stocks of U.S. basic materials companies. These are companies that are principally engaged in the business of producing raw materials, including paper or wood products, chemicals, construction materials, and mining and metals.  The Underlying Index is compiled, maintained and calculated by Standard & Poor’s.  The Fund’s 80% investment policy noted above is non-fundamental and requires 60 days’ prior written notice to shareholders before it can be changed.

The Underlying Index is reconstituted and rebalanced on an as-needed basis and the Fund, using an “indexing” investment approach, attempts to replicate, before fees and expenses, the performance of the Underlying Index. The adviser seeks correlation over time of 0.95 or better between the Fund’s performance and the performance of the Underlying Index; a figure of 1.00 would represent perfect correlation. The Fund generally will invest in all of the stocks comprising the Underlying Index in proportion to their weightings in the Underlying Index.

The Underlying Index is a diversified index designed to measure the overall performance of stocks in the Materials sector.  The Underlying Index is a subset of the S&P SmallCap 600 Index, which is a float adjusted market capitalization weighted index reflecting the U.S. small-cap market.  The S&P SmallCap 600 Index includes companies with a market capitalization range of between $250 million and $1.2 billion.

Concentration Policy.  The Fund will invest 25% or more of the value of its total assets in securities of issuers in an industry or group of industries to the extent that the Underlying Index concentrates in an industry or group of industries.

POWERSHARES S&P SMALLCAP TELECOMMUNICATION SERVICES  PORTFOLIO

Investment Objective

The Fund seeks investment results that correspond (before fees and expenses) generally to the price and yield performance of the index called the S&P SmallCap 600 Telecommunication Services Index (the “Underlying Index”).

Principal Investment Strategies

The Fund will normally invest at least 80% of its total assets in common stocks of telecommunication services companies. The Fund will normally invest at least 90% of its total assets in common stocks that comprise the Underlying Index. The Underlying Index is comprised of common stocks of U.S. telecommunication services companies. These are companies that are principally engaged in providing services designed to promote or enhance the transmission of voice, data and video over various communications media, including wireline, wireless (terrestrial-based), satellite and cable. These companies may also include companies that provide infrastructure and products used to facilitate wireline and wireless communications.  The Underlying Index is compiled, maintained and calculated by Standard & Poor’s.  The Fund’s 80% investment policy noted above is non-fundamental and requires 60 days’ prior written notice to shareholders before it can be changed.

The Underlying Index is reconstituted and rebalanced on an as-needed basis and the Fund, using an “indexing” investment approach, attempts to replicate, before fees and expenses, the performance of the Underlying Index. The adviser seeks correlation over time of 0.95 or better between the Fund’s performance and the performance of the Underlying Index; a figure of 1.00 would represent perfect correlation. The Fund generally will invest in all of the stocks comprising the Underlying Index in proportion to their weightings in the Underlying Index.

The Underlying Index is a diversified index designed to measure the overall performance of stocks in the Telecommunication Services sector.  The Underlying Index is a subset of the S&P SmallCap 600 Index, which is a float adjusted market capitalization weighted index reflecting the U.S. small-cap market.  The S&P SmallCap 600 Index includes companies with a market capitalization range of between $250 million and $1.2 billion.

Concentration Policy.  The Fund will invest 25% or more of the value of its total assets in securities of issuers in an industry or group of industries to the extent that the Underlying Index concentrates in an industry or group of industries.

POWERSHARES S&P SMALLCAP UTILITIES PORTFOLIO (THE “FUND”)

Investment Objective

The Fund seeks investment results that correspond (before fees and expenses) generally to the price and yield performance of the index called the S&P SmallCap 600 Utilities Index (the “Underlying Index”).

Principal Investment Strategies

The Fund will normally invest at least 80% of its total assets in common stocks of utility companies. In pursuit of its investment objective, the Fund will normally invest at least 90% of its total assets in common stocks that comprise the Underlying Index. The Underlying Index is comprised of common stocks of U.S. utility companies. These companies are principally engaged in providing either energy, water or natural gas utilities. These companies may include companies that generate and supply electricity, including electricity wholesalers; distribute natural gas to customers; and provide water to customers, as well as dealing with associated wastewater.  The Underlying Index is compiled, maintained and calculated by Standard & Poor’s.  The Fund’s 80% investment policy noted above is non-fundamental and requires 60 days’ prior written notice to shareholders before it can be changed.

The Underlying Index is reconstituted and rebalanced on an as-needed basis and the Fund, using an “indexing” investment approach, attempts to replicate, before fees and expenses, the performance of the Underlying Index. The adviser seeks correlation over time of 0.95 or better between the Fund’s performance and the performance of the Underlying Index; a figure of 1.00 would represent perfect correlation. The Fund generally will invest in all of the stocks comprising the Underlying Index in proportion to their weightings in the Underlying Index.

The Underlying Index is a diversified index designed to measure the overall performance of stocks in the Utilities sector.  The Underlying Index is a subset of the S&P SmallCap 600 Index, which is a float adjusted market capitalization weighted index reflecting the U.S. small-cap market.  The S&P SmallCap 600 Index includes companies with a market capitalization range of between $250 million and $1.2 billion.

Concentration Policy.  The Fund will invest 25% or more of the value of its total assets in securities of issuers in an industry or group of industries to the extent that the Underlying Index concentrates in an industry or group of industries.

 

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