PowerShares launched three new exchange traded funds (ETFs), one of which is PowerShares Buyback Achievers Portfolio (PKW)It will play on the dramatic rise in stock buybacks. Buybacks tend to help boost stock prices by reducing the number of shares and increasing earnings per share. Jen Ryan with TheStreet.com reports that buyback activity has been on a roll lately because it is a way to return value to shareholders without paying out dividends. Buying back shares signals two positive things: It means the company has surplus cash on hand and they believe their investment is the best possible at the time, shares Bruce Bond, president of PowerShares.

A press release states that including these new ETFs, the number of PowerShares listings on the Amex are at 58. These ETFs are the first of their kind, and PowerShares keeps offering unique and compelling portfolios. The goal of PKW is to give shareholders value through share buybacks.

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.