Quantcast
The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Broker-Sold ETFs on the Horizon Not Rated 2.0 Email Routing List Email & Route  Print Print
Monday, July 12, 2004

Broker-Sold ETFs on the Horizon

by: Theresa Sim

If all goes well at the SEC, PowerShares could be tapping brokers to help sell a rash of new ETFs as early as this fall. Powershares has so far filed a registration statement for seven broker-sold funds, but plans on updating the filing with additional funds later this week, said John Southard, PowerShares spokesman.

PowerShares' Planned Broker-Sold Funds
PowerShares Dynamic Large Cap Growth Portfolio
PowerShares Dynamic Large Cap Value Portfolio
PowerShares Dynamic Mid Cap Growth Portfolio
PowerShares Dynamic Mid Cap Value Portfolio
PowerShares Dynamic Small Cap Growth Portfolio
PowerShares Dynamic Small Cap Value Portfolio
PowerShares Zacks Neglected Opportunities Small-Cap Portfolio
Source: PowerShares SEC filing
The move is contingent upon the SEC approving an exemptive filing allowing PowerShares to compensate brokers to sell the funds.

Brokers will receive 2 percent of the total purchase price, but secondary market sales of the shares will not have sales commissions. The seven funds will be traded on the American Stock Exchange.

If approved, PowerShares hopes to launch a few of the new ETFs each month, with plans to continue selling through brokers in the future, said Southard.

Although PowerShares is accustomed to working through advisors, the sales process of broker-sold ETFs will be a little different, said Southard. Because only primary market sales will have commissions, the offering will have a "little more…look and feel of a syndication process," said Southard. "We're hoping that the process will create awareness and urgency…and encourage advisors to react," said Southard.

To help create that sense of urgency, PowerShares will rely on the communication channels it currently uses, targeting brokers using a combination of mailings, emails and phone calls.  

Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE

2.0
 Do You Recommend This Story?



GO TO: MFWire
Return to Top
 News Archives
2020: Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Raw XML
Add to My Yahoo!
follow us in feedly




©All rights reserved to InvestmentWires, Inc. 1997-2020
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use