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
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.
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