PowerShares Registers Small-Cap Sector ETFs
January 20th at 3:00pm by Tom Lydon
Here’s a first for the exchange traded fund (ETF) industry: a line of small-cap funds that target specific sectors. It’s what PowerShares has in mind, and the ETFs would be just in time for an anticipated small-cap rally in the recession’s wake.Invesco PowerShares has filed to offer 10 new exchange-traded funds that focus on small-cap sectors, a first for the ETF industry, reports Luisa Beltran for Ignites. The provider filed with the Securities and Exchange Commission (SEC) for offerings in the following sectors:
- Consumer discretionary
- Consumer staples
- Energy
- Financials
- Health care
- Industrials
- Information technology
- Materials
- Telecommunications
- Utilities
The funds will be made up of subsets of the S&P SmallCap 600 Index. The index includes companies with a market capitalization range of between $250 million and $1.2 billion. [Why small-cap companies have appeal now.]
There are no other small sector ETF suites like this out there, which makes them innovative, and investors could find them especially appealing in this post-recession era. Small-cap stocks have outperformed large-caps over the past 10 years, and they’re also better positioned to take advantage of improving economies. [Micro-caps are another option for ETF investors.]
For more stories about asset class ETFs, visit our asset class ETF category.
