PowerShares To Launch 4 New Financial Sector Specific ETFs On Dec. 2nd (KBWY, KBWD, KBWX, KBWP)

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November 30, 2010 11:41pm FUND LAUNCH NYSE:KBWD

In an attempt to sustain a competitive advantage in the ever growing exchange traded fund (ETF) world, PowerShares plans to launch four new financial sector specific ETFs to its arsenal on


 December 2nd, 2010.

The first will be the PowerShares KBW Premium Yield Equity REIT Portfolio (NYSE:KBWY) which is based on the KBW Premium Yield Equity REIT Index. The Fund will normally invest at least 90% of its total assets in securities that comprise the Underlying Index, which uses a dividend yield weighted methodology that seeks to reflect the performance of approximately 24 to 40 small- and mid-cap equity REITs in the United States.

The second will be the PowerShares KBW High Dividend Yield Financial Portfolio (NYSE:KBWD), which is based on the KBW Financial Sector Dividend Yield Index. The Fund will normally invest at least 90% of its total assets in securities that comprise the Underlying Index, using a dividend yield weighted methodology that seeks to reflect the performance of approximately 24 to 40 publicly listed financial companies that are principally engaged in the business of providing financial services and products, including banking, insurance and diversified financial services, in the United States.   The Index may also include securities of business development companies (BDCs) and equity and mortgage REITs.

The third ETF will be the PowerShares KBW International Financial Portfolio (NYSE:KBWX), which is based on the KBW Global ex-U.S. Financial Sector Index. The Fund will normally invest at least 90% of its total assets in securities that comprise the Underlying Index, which is a modified market capitalization weighted index, comprised mainly of American Depository Receipts (ADRs), that seeks to reflect the performance of approximately 60 non-U.S. financial companies that are principally engaged in the business of providing financial services and products, including banking, insurance and diversified financial services.

Lastly, the PowerShares KBW Property & Casualty Insurance Portfolio (NYSE:KBWP) is based on the KBW Property & Casualty Index and normally invests at least 90% of its total assets in securities that comprise the Underlying Index, which is a modified market capitalization weighted index that seeks to reflect the performance of approximately 24 property and casualty insurance companies.

As the US economy continues to witness accelerate growth, the aforementioned ETFs are expected to reap the benefits in the coming year.

Written By Kevin Grewal From ETF Tutor  Disclosure: No Positions 

Kevin Grewal is the founder, editor and publisher of ETF Tutor and serves as the editor at www.SmartStops.net, where he focuses on mitigating risk and implementing exit strategies to preserve equity. Additionally, he is the editor at The ETF Institute, which is the only independent organization providing financial professionals with certification, education, and training pertaining to exchange-traded funds (ETFs). Prior to this, Grewal was a quantitative analyst at a small hedge fund where he constructed portfolios dealing with stock lending, exchange-traded funds, arbitrage mechanisms and alternative investments. He is an expert at dealing with ETFs and holds a bachelor’s degree from the University of California along with a MBA from the California State University, Fullerton. He is a contributing author on The Street – his articles can also be found published on various sites including Yahoo! Finance, The Globe and Mail , Daily Markets, MSN Money, Seeking Alpha, Fidelity Investments, Traders Library, and Minyanville.


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