Preview of Upcoming Actively Managed ETFs

actively managed etfsThe WSJ’s Diya Gullapalli yesterday wrote about the pending regulatory approval of actively managed ETFs Actively Traded ETFs: A Step Closer to Reality. (We’re not sure that the editor got the article’s title right, many ETFs are actively traded).

We reviewed Invesco’s recent SEC filing and have prepared a short preview of what you should expect to see coming to market in the near future.

4 New ETFs on the Way

Invesco’s PowerShares requested final regulatory approval to launch four new ETFs:


The Active AlphaQ Portfolio and the Active Alpha Multi-Cap Portfolio, will be subadvised by New Hampshire-based AER Advisors, Inc. AER’s president, Carol O’Leary, is a pioneer in the actively managed ETF space with 50 funds in registration.

According to the filing, the investment objective of both AER funds will be to provide long-term capital appreciation by investing in stocks selected according to a quantitative screening methodology developed by AER.

Invesco ETFs

PowerShares sister company, Invesco Institutional (N.A.), Inc., will subadvise the PowerShares Active Mega-Cap Portfolio and the PowerShares Active Low Duration Portfolio.

The Mega-Cap Fund’s investment objective will be to provide long-term growth of capital by investing primarily in the equity securities of mega-capitalization companies according to a quantitative approach developed by Invesco.

The Low Duration Fund’s investment objective is to provide total return by investing primarily in U.S. government and corporate debt securities. Duration is a measure of a bond portfolio’s sensitivity to changes in interest rates.

Learn more about Invesco Institutional and PowerShares at the firms’ websites.

If you are interested in receiving a copy of our upcoming report Investing with Actively Managed ETFs, please subscribe to our e-mail list.

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