PowerShares

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DEFINITION of 'PowerShares'

A family of numerous domestic and international exchange-traded funds managed by the investment management company Invesco Ltd.


Founded in 2003, PowerShares trade like stocks on both U.S. and international stock exchanges, including the NASDAQ and NYSE Arca, and are intended to offer investors tax efficiency, transparency, flexibility and broad exposure.

BREAKING DOWN 'PowerShares'

Most ETFs are designed to track a market index. PowerShares, however, are designed to outperform market indexes. For this reason, the company refers to its ETFs as "next generation," "intelligent" or "value added" ETFs. The company's broad categories of ETFs offer investors choices such as actively managed ETFs, ETFs focused on earnings from dividend-paying stocks, green ETFs and fixed-income ETFs.

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RELATED FAQS
  1. What does a high turnover ratio signify for an investment fund?

    If an investment fund has a high turnover ratio, it indicates it replaces most or all of its holdings over a one-year period. ... Read Full Answer >>
  2. Does index trading increase market vulnerability?

    The rise of index trading may increase the overall vulnerability of the stock market due to increased correlations between ... Read Full Answer >>
  3. What is the difference between passive and active asset management?

    Asset management utilizes two main investment strategies that can be used to generate returns: active asset management and ... Read Full Answer >>
  4. Is there a situation in which wash trading is legal?

    Wash trading, the intentional practice of manipulating a stock's activity level to deceive other investors, is not a legal ... Read Full Answer >>
  5. Are there leveraged ETFs that follow the retail sector?

    There are many exchange-traded funds (ETFs) that track the retail sector or elements of the retail sector, and some of those ... Read Full Answer >>
  6. What are some of the most popular ETFs that track the retail sector?

    Some of the most popular exchange-traded funds (ETFs) that track the retail sector include the iShares S&P Global Consumer ... Read Full Answer >>

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