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The firm, which has more than $97 billion in franchise assets, plans to change the underlying indices and names of ten ETFs.
In addition, it has announced plans to close four ETFs, which together represent less than 1% of the ETF provider’s total assets.
Commenting on the changes, Dan Draper, managing director of global ETFs at Invesco PowerShares, said: “We regularly evaluate our ETF product offerings using numerous factors including investment results, how investors may utilize them in portfolios and length of time in the market, among others.”
He added: “For more than a decade, our focus has been to ensure that we provide innovative ETFs that can help investors meet their financial goals amidst a changing investment landscape. We believe these changes will provide investors a unique set of investment opportunities and position our family of ETFs for continued growth.”
The affected funds are currently linked to Intellidex Indices, a series of strategy indices owned and calculated by NYSE Euronext. As of effective date, the funds will switch to indices developed and calculated by Dorsey Wright & Associates, an investment advisory firm specializing in technical analysis.
Lorraine Wang, global head of ETF products and research at Invesco PowerShares, commeted: “As with our existing PowerShares DWA Momentum ETF lineup, these portfolios will be based on momentum strategies as measured by Dorsey Wright’s definition of relative strength characteristics, which can be a powerful tool for stock selection. The momentum indexes were developed by Dorsey Wright who we believe remains a leader in relative strength investing.”
The changes, which were approved by the Board of Trustees on December 17th, 2013, are scheduled to take effect on February 19, 2014 and concern the following ETFs:
PowerShares Dynamic OTC Portfolio (PWO)
NEW: PowerShares DWA NASDAQ Momentum Portfolio (DWAQ)
PowerShares Dynamic Basic Materials Sector Portfolio (PYZ)
NEW: PowerShares DWA Basic Materials Momentum Portfolio (PYZ)
PowerShares Dynamic Consumer Discretionary Sector Portfolio (PEZ)
NEW: PowerShares DWA Consumer Cyclicals Momentum Portfolio (PEZ)
PowerShares Dynamic Consumer Staples Sector Portfolio (PSL)
NEW: PowerShares DWA Consumer Staples Momentum Portfolio (PSL)
PowerShares Dynamic Energy Sector Portfolio (PXI)
NEW: PowerShares DWA Energy Momentum Portfolio (PXI)
PowerShares Dynamic Financial Sector Portfolio (PFI)
NEW: PowerShares DWA Financial Momentum Portfolio (PFI)
PowerShares Dynamic Healthcare Sector Portfolio (PTH)
NEW: PowerShares DWA Healthcare Momentum Portfolio (PTH)
PowerShares Dynamic Industrials Sector Portfolio (PRN)
NEW: PowerShares DWA Industrials Momentum Portfolio (PRN)
PowerShares Dynamic Technology Sector Portfolio (PTF)
NEW: PowerShares DWA Technology Momentum Portfolio (PTF)
PowerShares Dynamic Utilities Portfolio (PUI)
NEW: PowerShares DWA Utilities Momentum Portfolio (PUI)
The four ETFs set for closure are as follows:
PowerShares KBW International Financial Portfolio (KBWX)
PowerShares MENA Frontier Countries Portfolio (PMNA)
PowerShares Dynamic MagniQuant Portfolio (PIQ)
PowerShares Lux Nanotech Portfolio (PXN)
The final day of trading for these ETFs on Nasdaq and NYSE Arca will be February 18, 2014.
Shareholders may sell their holdings on or before February 18, 2014 and may incur typical transaction fees from their broker-dealer. Shareholders who do not sell their holdings on or before February 18, 2014 will receive cash equal to the amount of the net asset value of their shares, which will include any capital gains and dividends in the cash portion of their brokerage accounts.
The shareholder payment date is currently scheduled for on or about February 25, 2014. Shareholders will generally recognize a capital gain or loss equal to the amount received for their shares over their adjusted basis in such shares.