PowerShares To Close 13 ETFs

By
December 19, 2012
Share:

With the shuttering of 13 PowerShares ETFs, total fund closures leap above the 100 threshold.

 

Invesco PowerShares is shutting down 13 ETFs as it looks to consolidate its lineup of products, bringing closures announced in 2012 above the 100-fund mark.

The funds, which altogether represent less than 1 percent of PowerShares’ total ETF assets, will stop trading Feb. 26, and be liquidated by March 7. The funds, and their assets, include:

  • PowerShares Dynamic Insurance Portfolio (NYSEArca: PIC), $7.8 million in assets.
  • PowerShares Morningstar StockInvestor Core Portfolio (NYSEArca: PYH), $14 million.
  • PowerShares Dynamic Banking Portfolio (NYSEArca: PJB), $12 million.
  • PowerShares Global Steel Portfolio (NasdaqGM: PSTL), $1.9 million.
  • PowerShares Active Low Duration Portfolio (NYSEArca: PLK), $7.6 million.
  • PowerShares Global Wind Energy Portfolio (NasdaqGM: PWND), $9 million.
  • PowerShares Active Mega-Cap Portfolio (NYSEArca: PMA), $5.8 million.
  • PowerShares Global Coal Portfolio (NasdaqGM: PKOL), $10 million.
  • PowerShares Global Nuclear Energy Portfolio (NYSEArca: PKN), $10.6 million.
  • PowerShares Ibbotson Alternative Completion Portfolio (NYSEArca: PTO), $8.7 million.
  • PowerShares RiverFront Tactical Balanced Growth Portfolio (NYSEArca: PAO), $15.5 million.
  • PowerShares RiverFront Tactical Growth & Income Portfolio (NYSEArca: PCA), $15.8 million.
  • PowerShares Convertible Securities Portfolio (NYSEArca: CVRT), $9.43 million.

 

While total U.S.-listed ETF assets have been reaching record levels this year—most recently just shy of $1.349 trillion on Dec. 18—closures have been accelerating while fund launches have been slowing.

Industry sources say the industry is starting to mature and, moreover, the risk-on/risk-off flavor of markets since the 2008 crash has made fund sponsors more cautious in general about launching new ideas or defending ones that aren’t catching on very quickly.

Moreover, pruning product offerings can free up resources for fund sponsors to pursue newer, more prospective fund ideas more thoroughly and aggressively.

The latest PowerShares closures will bring to 110 the number of funds that are shutting so far this year. In 2011, 30 funds shut down, compared with 49 in 2010, 56 in 2009, 59 in 2008 and none in 2007, according to data compiled by IndexUniverse.

Details On PowerShares Shutdowns

Investors who own any of these ETFs may sell their holdings on or before Feb. 26, 2013, and may incur typical transaction fees from their broker-dealer, PowerShares said in a press release.

Anyone still holding shares at that date will receive cash equal to the amount of the net asset value of their shares, which will include any capital gains and dividends, on the liquidation date.

“Shareholders will generally recognize a capital gain or loss equal to the amount received for their shares over their adjusted basis in such shares,” PowerShares said in the release.

ETF.COM CHANNELS

Interested in China? Use our China ETFs Channel, library, and ETF screener.

Interested in oil? Use our oil ETFs channel, library and ETF screener!

ETF DAILY DATA

The largest gold miners ETF lost assets on Thursday, April 28.

BlackRock's ETF assets gained $859 million on Thursday, April 28.

ETF.COM ANALYST BLOGS

By Drew Voros

With the broad equity ideas all taken, issuers look for thinner slices of exposure.

By David Lichtblau

How funds wash away capital gains through create/redeem process.

By Dave Nadig

End investors are the big winners; brokers—not so much.

By Dave Nadig

ETF industry petitions the SEC for market microstructure changes.

ETF INDUSTRY PERSPECTIVE

By Sprott Asset Management

New fund’s underlying index targets equities sentiment on social media.

By Kristi Kuechler

Avoid taking unrewarded—or unintended—risks.

By Vanguard

The investing giant outlines its expectations for the markets and global economy in 2016.