April 11, 2008 at 3:00 pm by Tom Lydon
The long-awaited actively managed exchange traded funds (ETFs) from Invesco PowerShares are here. They’re billed as the industry’s first three actively managed equity ETFs, and they began trading on the NYSE Arca today.
All of the funds’ holdings are to be disclosed daily on the fund’s website. They are:
- PowerShares Active Low Duration Fund (PLK): Invests in a portfolio of U.S. government, corporate and agency debt securities. It seeks to outperform the Lehman Brothers 1-3 Year U.S. Treasury Index. The unitary fee will be 0.29%.
- PowerShares Active Mega Cap Fund (PMA): Invests primarily in the equity securities of mega-caps. It seeks to outperform the Russell Top 200 Index. The unitary fee will be 0.75%.
- PowerShares Active AlphaQ Fund (PQY): Invests in a portfolio of about 50 securities listed on the Nasdaq Global Market. It seeks to outperform the Nasdaq 100 Index, and the unitary fee will be 0.75%.
- PowerShares Active Alpha Multi-Cap Fund (PQZ): Invests in about 50 securities selected according to a methodology developed by AER advisors. It seeks to outperform the S&P 500. Its unitary fee will be 0.75%.
The unitary fee is the one fee used to cover expenses incurred in connection with managing the portfolio.
Bear Stearns launched the first actively managed ETF in late March, Bear Stearns Current Yield Fund (YYY).
Subscribe to our RSS Feed
April 11th, 2008 at 11:28 pm
What is the difference between an actively managed ETF, a CEF (that is managed and trades like a stock), and an ETF that adjusts per a formula (like XRO or CRO).