Invesco PowerShares Capital Management moved in on WisdomTree’s territory with Thursday’s launch of four new ETFs on the NYSE Arca. indexes. All four are based on Keefe, Bruyette & Woods (KBW), but two which track indexes which use a dividend-yield methodology.
WisdomTree, which launched its first ETF in 2006, has built an ETF family entirely based on divided indexes. SPDR and iShares also have some ETFs that follow indexes with a dividend-based weighting.
The PowerShares KBW High Dividend Yield Financial Portfolio (KBWD) uses a dividend yield weighted methodology to give investors access to hard-to-reach financial sub-sectors both domestically and abroad.
The PowerShares KBW Premium Yield Equity REIT Portfolio (KBWY) used a dividend yield weighted methodology that seeks to reflect the performance of approximately 24 to 40 small- and mid-cap equity REITs in the United States.
The PowerShares KBW High Dividend Yield Financial Portfolio (KBWD) uses a dividend yield weighted methodology to track 24 to 40 financial companies engaged in the financial services sector, such as banking, insurance and diversified financial services. It tracks the KBW Financial Sector Dividend Yield Index, which may include securities of business development companies and equity and mortgage REITs.
The PowerShares KBW International Financial Portfolio (KBWX) tracks the KBW Global ex-U.S. Financial Sector Index. Comprised primarily of American Depository Receipts (ADRs), the index is a modified market-capitalization weighted index that follows 60 non-U.S. financial companies engaged banking, insurance and diversified financial services.
The PowerShares KBW Property & Casualty Insurance Portfolio (KBWP) tracks the eponymous index, which is a modified market-capitalization weighted index that follows 24 property and casualty insurance companies.