A new era of exchange traded funds (ETFs) is here: PowerShares got the go-ahead from the Securities and Exchange Commission (SEC) for an actively managed fund.

Make that four of them. The anticipated names, according to PowerShares, are:

  • PowerShares Active AlphaQ Fund: seeks to provide long-term capital appreciation by investing in a portfolio of 50 Nasdaq-listed securities. It’s designed to beat the Nasdaq 100 benchmark.
  • PowerShares Active Alpha MultiCap Fund: Designed to achieve returns in excess of the S&P 500 with a portfolio of 50 securities.
  • PowerShares Active Mega-Cap Fund: Seeks to primarily invest in mega-caps and outperform its benchmark, the Russell Top 200.
  • PowerShares Active Low Duration Fund: Invests in a portfolio of U.S. government and corporate bonds, and seeks to outperform its benchmark, the Lehman Brothers 1-3 Year US Treasury Index.

The holdings of each fund will be disclosed daily on the PowerShares website. Transparency had been a key issue that held up the approval of actively managed funds.

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.