Daily ETF Watch: PowerShares To Self-Index

Exemptive relief filing outlines plans for self-indexed ETFs.

Reviewed by: Heather Bell
Edited by: Heather Bell

A filing from Invesco PowerShares requests exemptive relief to launch self-indexed ETFs. The paperwork is fairly standard, outlining plans for self-indexed fixed-income and equity ETFs covering foreign and domestic securities. The filing also mentioned 130/30 funds and long/short funds.

The initial fund described in the relief request will track the Invesco Quantitative U.S. Equity Index, an equity fund designed to target stocks with the “greatest potential for capital appreciation,” the prospectus said.

Self-indexing has become increasingly popular. WisdomTree really pioneered the concept, with almost all of its funds based on in-house indexes. IndexIQ also has an ETF lineup that mainly tracks the firm’s own indexes, while Van Eck’s Market Vectors has been switching the benchmarks on many of its funds to in-house indexes.

Contact Heather Bell at [email protected].

Heather Bell is a former managing editor of etf.com. She has also held editorial positions at Dow Jones Indexes and Lehman Brothers. Bell is a graduate of Dartmouth college and resides in the Denver area with her two dogs.