Invesco (NYSE: IVZ) PowerShares has launched its first actively-managed ETF on the NYSE Arca Friday. These 4 PowerShares ETFs include 3 first-in-kind equity exchange-funds and one actively-managed fixed income ETF.
The PowerShares Active Alpha Q Fund (NYSE Arca: PQY) and the PowerShares- Active Alpha Multi-Cap Fund (NYSE Arca: PQZ) will be managed by Invesco while the PowerShares- Active Mega-Cap Portfolio (NYSE Arca: PMA) and PowerShares- Active Low Duration Portfolio (NYSE Arca: PLK) will be advised by AER Advisors.
Actively-managed ETF’s are a very recent development, and act more like hedge funds than anything. Bear Stearns launched the first fixed income EFT (NYSE: YYY) that is actively-managed in March of this year. Previously, ETF’s were almost always tied to an index.
The Alpha Q fund and the Alpha Multi-Cap Funds are the only two to trade so far, with Alpha Q down by less than 1% and Alpha Multi-cap up by less than 1% in early morning trading.
April 14, 2008