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Invesco PowerShares, a leading global sponsor of exchange-traded funds (ETFs), and NYSE Euronext, an exchange operator and index provider, have announced the launch of the PowerShares NYSE Century Portfolio ETF (NYCC).
The ETF, which has been listed on the NYSE Arca, is the first investment product to be based on the NYSE Century Index.
Launched in 2012, the NYSE Century Index is composed of American companies that have been incorporated in the US for at least 100 years, maintain a current US listing and have a market capitalization of at least $1 billion.
The selection criteria underlying the index results in a diverse range of companies from mega caps to smaller companies, across a range of sectors. The largest percentage of constituents (44%) are in the under $5 billion market cap bracket, though some 10% of constituents are valued at over $50 billion.
The index currently comprises 372 companies, with representation from 10 major sectors. The financials sector has the largest weighting, with 23%, followed by industrials with 20%. The smallest sectors are, understandably, telecommunications and information technology, with 1% and 3% respectively. The index is equally weighted and rebalanced annually.
Martin L. Flanagan, president and CEO of Invesco, said: “The PowerShares NYSE Century Portfolio invests in household names that have defined the American economy for more than a century. We believe NYCC offers investors targeted exposure to companies that have demonstrated the ability to innovate, transform and grow through decades of varying economic cycles, political conditions and social change.”
Duncan L. Niederauer, CEO of New York Stock Exchange, added: “We are very pleased to list the PowerShares NYSE Century Portfolio on NYSE Arca. NYCC unlocks the investment potential of the NYSE Century Index, providing investors with exposure to the leadership, stability and sound business execution of the NYSE Century Club, a community of US companies that have demonstrated longevity and contributed to economic and social progress for more than 100 years.”
The fund has a total expense ratio of 0.50%.