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.