PowerShares Files To Offer Two Equity ETFs

By Olivier Ludwig,

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PowerShares, the Wheaton, Ill.-based fund company best known for its Nasdaq ETF (NasdaqGM:QQQQ), filed with the Securities and Exchange Commission to offer two equity ETFs focused on "high-quality" U.S. companies.

The PowerShares Morningstar StockInvestor Core Portfolio will be based the Morningstar StockInvestor Core Index, which comprises about 50 stocks of high-quality companies selected by Morningstar, the Chicago-based investment research firm, the filing said. The PowerShares S&P 500 High Quality Portfolio will use the S&P 500 High Quality Rankings Index as its benchmark. Constituents in the index are screened for their long-term growth record as well as the stability of their earnings and dividends.

The filing comes at a time when investors are beginning to scour the investment landscape for well-established and dependable companies to ensure decent returns. Equity prices have been rising from their March 2009 lows for more than a year, but investors are bracing for an extended period of anemic growth until U.S. unemployment falls meaningfully from its current rate of more than 9 percent.

Both ETFs have a 0.50 percent annual management fee, according to the filing, which was dated April 29. PowerShares didn't disclose the funds' trading symbols and didn't say when it might launch the two ETFs.

Don't forget to check IndexUniverse.com's ETF Data section.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing ETFs
Referenced Stocks: QQQ

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