PowerShares, the fourth-largest U.S. ETF issuer, is planning to build on the success of the PowerShares Buyback Achievers Portfolio (NYSEArca: PKW) by introducing a global equivalent.
Illinois-based PowerShares has filed plans for the PowerShares International BuyBack Achievers Portfolio with Securities and Exchange Commission. PKW’s global cousin will follow the Nasdaq International BuyBack Achievers Index, according to the SEC filing.
The Nasdaq International BuyBack Achievers Index follows a similar methodology as PKW’s underlying index, the NASDAQ US Buyback Achievers Index. That includes the requirement that constituent firms must have reduced their shares outstanding count by 5% over the trailing 12-month period to be eligible for inclusion.
Russian and Indian securities, as well as Chinese “B-Shares,” aren’t included in the index, reports Hung Tran for Index Universe.
Although total share repurchases were slightly less than $169 billion in the third quarter, making the July-September the worst this year for buybacks, PKW has been on an impressive run this year. The ETF is up 38%, about 1,200 basis points more than the S&P 500. [Buyback ETF Still Soaring]
Additionally, PKW recently crossed the $2 billion in assets under management level. That milestone is made even more noteworthy when considering about $1.5 billion has flowed into PKW this year, according to PowerShares flows data. Only two other PowerShares ETFs have hauled in more new assets this year than PKW.
PowerShares Buyback Achievers Portfolio
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.