PowerShares set to list bond ETF on NYSE

clock

Invesco PowerShares is planning to list a fundamentally-weighted corporate bond ETF on the New York Stock Exchange on Thursday.

The ETF will track the Research Affiliates Fundamental Index (RAFI) methodology which selects bonds based on cash flow, dividends, sales and book value of assets. Maturities of the bonds range from one to 10 years. Traditional fixed income indices tend to select their components based on the size of issuance, which therefore exposes investors in the index to the most heavily indebted companies. This has been a criticism of fixed income ETFs. "We think that the concept of fundamentally weighting products as opposed to cap-weighting, particularly in the case of fixed income ETFs, is a ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on ETFs

Amid the rise of active ETFs, remember to look before you leap

Amid the rise of active ETFs, remember to look before you leap

The importance of a balanced view

Sheldon MacDonald
clock 21 March 2025 • 4 min read
What advisers and investors need to know about thematic ETFs

What advisers and investors need to know about thematic ETFs

Rahul Bhushan explores thematic ETF funds and shares his insight on what advisers need to know...

Rahul Bhushan
clock 20 February 2025 • 4 min read
Partner Insight: Vanguard European ETF flows summary - August inflows fall

Partner Insight: Vanguard European ETF flows summary - August inflows fall

Read Vanguard's latest monthly summary of flows in the European ETF market.

Vanguard
clock 02 October 2023 • 10 min read