New ETFs from PowerShares; New Muni Index from S&P

September 8th at 3:00pm by Tom Lydon

Invesco PowerShares has filed with the Securities and Exchange Commission to launch four new exchange traded funds (ETFs) based on so-called FIRE indexes targeting the financial, insurance and real estate sectors.

PowerShares has collaborated with Keefe, Bruyette & Woods, a New York financial firm, to create new ETFs for investors seeking exposure to dividends. KBW is the creator of the indexes. [New Filing, New Provider.]

Steve Dew for Index Universe reports that the new ETFs are:

  • The PowerShares KBW Premium Yield Equity REIT Portfolio (NYSEArca: KBWY)
  • The PowerShares KBW High Dividend Yield Financial Portfolio (NYSEArca: KBWD)
  • The PowerShares KBW Global ex-U.S. Financial Sector Portfolio (NYSEArca: KBWX)
  • The PowerShares KBW Property & Casualty Insurance Portfolio (NYSEArca: KBWP)

A new index has also appeared on the scene: the S&P Municipal Yield Index is a market value-weighted index that seeks to provide a measure of an investing strategy used in the municipal market that allocates a different percentage to bonds rated below investment grade and non-rated bonds than to bonds rated investment grade. [10 New ETFs Worth A Look.]

The PR NewsWire report states that the S&P Municipal Yield Index incorporates a strategy of proportional investing in municipal bonds that typically have higher yields than other municipal bonds. About 70% of the market value of the index is allocated to high yield bonds, 20% to BBB rated bonds and 10% to A rated bonds. Both tax-exempt bonds and bonds subject to the Alternative Minimum Tax (AMT) are included in the index.

Tisha Guerrero contributed to this article.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.