Powershares Capital Management LLC has introduced thePowerShares Lux Nanotech Portfolio.
According to a news release t he PowerShares Lux Nanotech Portfolio is an exchange traded fund designed to track the Lux Nanotech Index, which is comprised of companies involved in developing, manufacturing and funding nanotechnology applications. The Lux Nanotech Index is based on the analytical framework developed by Lux Research, and is rebalanced and reconstituted quarterly.
The company has also introduced thePowerShares Aerospace and Defense Portfolio.
It is an exchange traded fund designed to track the SPADE Defense Index which is comprised of publicly traded companies focused on homeland and border security, space industry infrastructure, and technological innovations in warfare. According to the announcement, companies within the SPADE index must trade for at least $5 a share, have a market capitalization of at least $100 million, and trade a minimum of one million shares a month. The SPADE Defense Index is a modified market-cap weighted index that is rebalanced quarterly and reconstituted annually.
Both funds will begin trading on the American Stock Exchange as of October 26.
ETFs have experienced increasing popularity as institutional investors look for options that provide diversification and lower costs (See The Bottom Line: Needful Things? ).
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