ETF Spotlight on the PowerShares NYSE Century Portfolio ETF (NYSEArca: NYCC), part of an ongoing series.
Assets: $3.9 million
Objective: The PowerShares NYSE Century Portfolio Fund tries to reflect the performance of the NYSE Century Index, which is comprised of the largest and oldest public companies in the U.S.
Holdings: Top holdings include Williams Companies Inc (NYSE: WMB) 0.4%, Pepco Holdings (NYSE: POM) 0.4%, Alcoa (NYSE: AA) 0.4%, Henesbrands (NYSE: HBI) 0.4% and Protective Life (NYSE: PL) 0.4%.
What You Should Know:
- Invesco PowerShares sponsors the fund.
- NYCC has a 0.5% expense ratio.
- The ETF has 372 holdings and the top ten make up 3.6% of the overall portfolio.
- Sector allocations include financials 22.7%, industrials 19.4%, utilities 11.7%, consumer staples 11.5%, consumer discretionary 11.1%, materials 9.7%, health care 5.5%, energy 4.3%, information technology 3.2% and telecom services 0.8%.
- The fund leans toward value stocks.
- As part of its indexing methodology, the ETF tracks companies that have incorporated in the U.S. for at least 100 years and have a market capitalization of at least $1 billion as of the rebalancing date, which occurs annualy in December.
- Market cap and style allocations include large-cap value 12.2%, large-cap blend 11.5%, large-cap growth 7.1%, mid-cap value 20.5%, mid-cap blend 13.3%, mid-cap growth 7.4%, small-cap value 16.3%, small-cap blend 8.0% and small-cap growth 3.7%.
- NYCC started trading on January 15, 2014.
- The ETF is up 0.3% over the past month, up 4.9% over the last three months and up 4.5% since inception.
- Potential investors should note that the fund is still small, with a daily trading average of 2,302 shares, according to Morningstar data.
- Consequently, traders should use limit orders to better control trades.
Next page: What you should know
The Latest News:
- Broad U.S. equities are stuck in a sideways market as a fresh bout of financial concerns over Portuguese lenders shook global markets.
- “There is worry about contagion,” Thomas Roth, a government bond trader at Mitsubishi UFJ Securities (USA) Inc, said in a Wall Street Journal article. “The theory is that it could lead to bank failures and throw us back into recession.”
- Consequently, U.S. equities experienced its largest weekly loss since April, reports Steve Rothwell for Seattle Times.
- Wall Street is heading into earnings season, and investors are expecting to see growth in profits, with a 6.5% rise in S&P 500 earnings, compared to the same period last year.
- “The market is looking for signs of strength and certainly earnings are going to figure pretty heavily,” Jim Russell, a regional investment director at US Bank, said in the Seattle Times article.
PowerShares NYSE Century Portfolio ETF
For past stories in this series, visit our ETF Spotlight category.
Max Chen contributed to this article.