PowerShares Files For Emerging Markets Bond Fund And Dividend ETF

by on August 3, 2012 | ETFs Mentioned:

This past week has been all downhill for major equity indexes as investors received no comfort from banks and lawmakers on both sides of the Atlantic ocean. Hopes of further stimulus began to fade away after Wednesday’s FOMC meeting, during which the Fed cited deteriorating economic growth expectations, while at the same time offering no further measures to quell uncertainties. The European Central Bank also disappointed investors as President Draghi indicated that bond repurchases would continue without offering any new initiatives to ensure stability. Amidst another tumultuous trading week on Wall Street, industry giant PowerShares filed for two new funds to add to its already extensive lineup [see also July 2012 ETF Roundup: Launches, Filings And Closures].

Illinois-based PowerShares recently laid out the groundwork for an emerging markets bond fund, offering investors an option for rounding out their fixed-income component [see SEC Filing]:

  • PowerShares Fundamental Emerging Markets Local Debt Portfolio: This ETF will seek to replicate the price and yield performance of the Citi RAFI Sovereign Emerging Markets Bond Index. The emerging market countries to be included in the portfolio will be evaluated based on gross domestic product, population, land area and energy use. As of June 30, 2012, the underlying index included bonds issued by the national governments of Brazil, Colombia, Chile, the Czech Republic, Hungary, Indonesia, Malaysia, Mexico, Peru, the Philippines, Poland, South Africa, Thailand and Turkey.

The industry veteran also filed for a dividend-focused U.S. equity ETF [see SEC Filing]:

  • PowerShares S&P 500 High Dividend Portfolio (SPHD): This ETF will seek to replicate the price and yield performance of the S&P 500 High Dividend Index. The underlying portfolio will be comprised of 75 securities selected from the S&P 500 Index that have the highest dividend yields over the past 12 months [see also Monthly Dividend ETFdb Portfolio].

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Disclosure: No positions at time of writing.