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15/09/2008 Intelligent ETF revolution with new ETFs

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Two ETFs on the London Stock Exchange….

Invesco PowerShares announce the launch of :

PowerShares Dynamic Japan Fund

PowerShares Global Agriculture NASDAQ OMX Fund.

PowerShares Dynamic Japan Fund

The PowerShares Dynamic Japan Fund is based on the Quantitative Services Groups’ (QSG) Active Japan index. QSG uses a diverse and comprehensive multi-factor stock evaluation process to select the most attractive stocks. The QSG Active Japan Index is an equal-weighted (125 stocks with 0.80% in each stock) Japan-focused portfolio that is reconstituted each calendar quarter.

Commenting on Invesco PowerShares’ approach to ETFs, Tim Mitchell, UK Specialist Funds team, said: “At Invesco PowerShares we recognised an opportunity in our Intelligent Index range for a Japan-focused ETF. The back-tested performance of the QSG Active Japan Index, based on their proprietary methodology, has achieved positive long-term returns in excess of the Tokyo Growing concerns over economic growth and heightened stockmarket volatility the world over are changing how Japan is perceived – a perception which has been strengthened by Japan’s recent relative stockmarket performance.”

PowerShares Global Agriculture NASDAQ OMX Fund

The PowerShares Global Agriculture NASDAQ OMX Fund offers exposure to companies involved in agriculture, fertilisers, agricultural chemicals and farming technologies and is based on the NASDAQ OMX Global Agriculture Index. This index is designed to track the performance of the largest and most liquid stocks engaged in agriculture and farming related activities. It uses a modified market cap-weighting methodology and this process puts emphasis on large caps, but allows meaningful exposure to smaller to mid caps.

Tim Mitchell continues: “In addition, we have launched the PowerShares Global Agriculture NASDAQ OMX Fund as agricultural commodities continue to show resilience despite current market conditions. Soaring oil prices, Government initiatives, political instability, environmental awareness and supportive demographics are all driving demand in this sector. With the middle classes in developing nations like India, China and Brazil growing at breakneck speed, the tastes of the world are rapidly changing.These changes are driving demand for more resource demanding food items like beef and other complex foods, which drive all links in the agriculture chain.”

Source:ETFWorld.co.uk – PowerShares

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