Powershares Looks to Build ETF Share
Exchange-traded funds have been one of the fastest growing investment products in recent memory. There are now more than 170 U.S.-listed ETFs available, which are basically index funds that trade like stocks, with assets totaling close to a quarter-trillion dollars.
That's not bad for an asset class that began with a single fund in 1994 and started to gain steam only in the past two to three years.
Despite the explosion in ETF assets and products, the ETF market is still dominated by a few big players, notably Barclay's Global Investors and State Street Global Advisors.
Nevertheless, there is an upstart in the ETF world called Powershares, which is trying to elbow its way in by rolling out its own brand of "intelligent ETFs." Powershares says its ETFs will outperform traditional index ETFs by using quantitative analysis to retain only the top-performing index components.Powershares currently has 11 ETF products on the market, with about $930 million under management. The largest is the Powershares High Yield Dividend Achievers (PEY), with holdings of $375 million. The company plans to introduce eight new sector-based ETFs on June 23. In advance of that rollout, Bruce Bond, president of Powershares, stopped by TheStreet.com to talk about how the company plans to run with the big boys. To watch the StreetWatch video,
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
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.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
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.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV