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
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
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 (
) are included in the index.
Tisha Guerrero contributed to this article.