New ETF Product Set for Launch

December 16, 2005 ( - A Wheaton, Illinois firm is scheduled to launch the PowerShares FTSE RAFI US 1000 Portfolio - the first ETF based on fundamental indexing - on Monday on the New York Stock Exchange (NYSE).

PowerShares Capital Management has designed the FTSE RAFI US 1000 Index as the underlying benchmark for the new offering, which will track the performance of the top 1,000 US-based companies whose fundamental factors -sales, cash flow, book value and dividends – determine the inclusion and weighting in the index.

Fundamental indexing selects, ranks and weights companies by financial fundamental measures of company size. This methodology seeks to correct the potential of market-cap weighted indexes to overweight overvalued stocks.

More information about the ETF product is  here .