PowerShares

AAA

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.

INVESTOPEDIA EXPLAINS '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.

RELATED TERMS
  1. Exchange-Traded Fund - ETF

    A security that tracks an index, a commodity or a basket of assets ...
  2. Index Fund

    A type of mutual fund with a portfolio constructed to match or ...
  3. iShares

    A large provider of exchange-traded funds, managed by the investment ...
  4. Net Asset Value - NAV

    A mutual fund's price per share or exchange-traded fund's (ETF) ...
  5. Spiders - SPDR

    A short form of Standard & Poor's depositary receipt, an ...
  6. ETF Sponsor

    The company or financial institution which creates and administers ...
Related Articles
  1. Mutual Funds & ETFs

    4 Ways To Use ETFs In Your Portfolio

  2. Mutual Funds & ETFs

    Bond ETFs: A Viable Alternative

  3. Options & Futures

    The Benefits Of ETF Investing

  4. Mutual Funds & ETFs

    Dollar-Cost Averaging With ETFs

Hot Definitions
  1. Capitulation

    When investors give up any previous gains in stock price by selling equities in an effort to get out of the market and into ...
  2. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  3. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  4. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  5. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  6. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
Trading Center