This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Amex Rolls Out China, Dividend ETFs

If you've been stumped for a way to play China or to cash in on dividends, the American Stock Exchange can help you out.

A pair of new exchange-traded funds based on those popular themes started trading today. What's more, the company behind the new ETFs says today's rollout will be followed by 24 more ETF flavors over the next several months.

The PowerShares Golden Dragon Halter USX China Portfolio (PGJ) comprises U.S.-listed companies that derive most of their revenue from China. The fund's two largest holdings are PetroChina (PTR) and China Mobile (CHL), which comprise 12% and 11.5% of the 38-stock portfolio. The ETF is rebalanced quarterly.

PowerShares High-Yield Equity Dividend Achievers Portfolio (PEY) also was launched today. This ETF targets investors seeking to invest in high-yielding companies committed to increasing their dividends. The fund tracks the Mergent Dividend Achievers 50 Index, which tracks the 50 highest-yielding stocks with at least 10 years of consecutive dividend increases.

Financials and utilities comprise the two largest sectors in the ETF's portfolio, with 39.3% and 40.6% of assets, respectively. The fund's largest holding is natural gas supplier Nicor (GAS), at 3% of the portfolio. Nicor sports a yield of 5.1%.

Both ETFs priced this morning at $15. The China ETF last traded at $14.48, while the dividend ETF was down 18 cents on the day to $14.82.

Nearly 100,000 shares of the China ETF have traded today, while more than 700,000 shares of the dividend ETF have changed hands.

The China ETF has an expense ratio of 0.6%, and the dividend ETF sports annual operating expenses of 0.5% of assets.

Powershares President Bruce Bond says he expects the dividend ETF to grow to $1 billion in assets over the next year and the China product to hit $200 million. Based on the funds' pricing Wednesday, the dividend ETF has $11 million in assets right now and the China ETF has $2 million.

Powershares will be facing some stiff competition in its quest to gain market share from established ETF powerhouse Barclays Global Investors. In October, Barclays rolled out its own China-themed ETF, the iShares FTSE/Xinhua China 25 Index (FXI), which tracks companies that trade on the Hong Kong Stock Exchange. That ETF has grown to over $409 million in assets since its introduction.

The Powershares dividend ETF will be going head-to-head with the $4.7 billion iShares Dow Jones Select Dividend (DVY), which debuted in November 2003 and tracks the Dow Jones Select Dividend Index. That measure tracks the 50 highest-yielding stocks in the Dow Jones U.S. Total Market Index.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,719.00 +33.27 0.19%
S&P 500 2,052.75 +4.03 0.20%
NASDAQ 4,701.8670 +26.1550 0.56%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs