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

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.

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