Daily ETF Watch: PowerShares Shuts 4 ETFs

The No. 4 ETF issuer is closing four ETFs and launching a new international fund to boot.

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Reviewed by: Hung Tran
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Edited by: Hung Tran

PowerShares, the No. 4 issuer by assets, is closing four ETFs today that, combined, have under $67 million in total assets.

The firm is also launching a new ETF that in essence serves up an international angle to its successful $2.7 billion PowerShares Buyback Achievers Portfolio (PKW | B-93).

The four funds facing the ax today include:

  • PowerShares KBW International Financial Portfolio (KBWX | D-49), which has $2.5 million in assets
  • PowerShares MENA Frontier Countries Portfolio (PMNA | F-61), which has $16.3 million in assets
  • PowerShares Dynamic MagniQuant Portfolio (PIQ | C-57), which has $22.4 million in assets
  • PowerShares Lux Nanotech Portfolio (PXN | D-12), which has $25.4 million in assets

In addition, PowerShares on Feb. 27 is launching the PowerShares International BuyBack Achievers Portfolio (IPKW), which will track the Nasdaq International BuyBack Achievers Index. The fund invests in foreign companies classified as “BuyBack Achievers” that have reduced 5 percent or more of their outstanding shares in the past 12 months.

While dividend ETFs have been popular with investors in the current market given the prevalence of low bond yields, the “tapering” of the Federal Reserve’s easy-money monetary policies may put a damper on dividend strategies, forcing investors to look for returns in other corners of the market.

One such corner may be stock buyback strategies, whereby stocks perceived to be undervalued are gobbled up by management teams, in a process that reduces the supply of shares in the market while potentially boosting their prices.

The Fund has an expense ratio of 0.55 percent or $55 for every $10,000 invested.

Filings

New York-based Ark Investment Management has filed regulatory paperwork for four active technology-focused ETFs. They are:

  • ARK Disruptive Innovation ETF
  • ARK Genomics Revolution ETF
  • ARK Industrial Innovation ETF
  • ARK Webx.0 ETF

The ETFs will invest in genomics, energy, robotics and cloud-based companies, according to a regulatory filing. No associated tickers or fees were available for the funds.

 

Hung Tran is a former staff writer for etf.com.