Back

Invesco PowerShares

Powershares
TypeSubsidiary
IndustryAsset Management
Founded2002 (2002)
Headquarters,
ParentInvesco
Websitewww.invescopowershares.com

Invesco PowerShares (formerly PowerShares Capital Management) is an American boutique investment management firm based near Chicago which manages a family of exchange-traded funds or ETFs.[1][2] The company has been part of Invesco, which markets the PowerShares product, since 2006.

Created in 2002, PowerShares funds use quantitative indices as a benchmark.[3] There are currently over 120 PowerShares ETFs.[4]

PowerShares cover and emulate a variety of market indices; for example, the PowerShares QQQ (NasdaqQQQ) is designed to replicate the NASDAQ-100 Index. The PowerShares QQQ is one of the most widely traded shares on the stock market, according to writer John J. Murphy.[5][4]

PowerShares ETFs also cover the commodities market, diversified and tiny or microcap stocks.[6] For instance, the PowerShares DB Commodity Index Tracking Fund, or DBC, which it developed with Deutsche Bank, allows for individual investors to invest in commodities by means of its ETF.[7] The PowerShares DB Oil Fund (DBO) deals with the crude oil index.[6]

  1. ^ Judith Rehak (November 9, 2005). "A new approach to microcaps". The New York Times. Retrieved 2012-06-13. PowerShares, a Chicago ETF boutique... While still an index fund, the PowerShares ETF takes a more active approach. It re-evaluates companies weekly, removing those that do not pass muster, and rebalances the entire index four times a year.
  2. ^ "PowerShares Puts the Kibosh on 6 Oddly-Named ETFs". US News. August 22, 2008. Retrieved 2012-06-13.
  3. ^ The ETF Book by Richard A. Ferri, Don Phillips 2009 ISBN 0-470-53746-9 page 121
  4. ^ a b Trading ETFs by Deron Wagner 2012 Bloomberg Press ISBN 1118109139 page 25
  5. ^ The Visual Investor by John J. Murphy 2009 ISBN 0471144479 page 255
  6. ^ a b Commodity Strategies by Thomas J. Dorsey 2007 ISBN 0470126310 page 150
  7. ^ Understanding Exchange-Traded Funds by Archie M. Richards 2007 ISBN 0071484914 page 230