Invesco’s (IVZ) PowerShares unit, the fourth-largest U.S. ETF issuer, said Wednesday it will shutter four ETFs while changing the names and underlying indices for 10 others.
Nine PowerShares dynamic sector funds will transition to momentum indices from Dorsey Wright & Associates and change their names to reflect those index changes. The Powershares Dynamic OTC Portfolio (PWO) will become the PowerShares DWA Nasdaq Momentum Portfolio (NasdaqGS:DWAQ) . The other names and index changes are reflected below.
Dorsey Wright momentum strategies are currently used for popular PowerShares ETFs such as the PowerShares DWA SmallCap Momentum Portfolio (DWAS) and the PowerShares DWA Emerging Markets Momentum Portfolio (PIE) among others. [Another Momentum ETF Tops $1B in Assets]
“As with our existing PowerShares DWA Momentum ETF lineup, these portfolios will be based on momentum strategies as measured by Dorsey Wright’s definition of relative strength characteristics, which can be a powerful tool for stock selection,” said Lorraine Wang, Invesco PowerShares global head of ETF products and research, in a statement. “The momentum indexes were developed by Dorsey Wright who we believe remains a leader in relative strength investing.”
Illinois-based PowerShares will shutter the PowerShares KBW International Financial Portfolio (KBWX) , PowerShares MENA Frontier Countries Portfolio (PMNA) , PowerShares Dynamic MagniQuant Portfolio (PIQ) and the PowerShares Lux Nanotech Portfolio (PXN) .
The final day of trading of trading for those ETFs, which together represent less than 1% of Invesco PowerShares’ total assets, will be Feb. 18.
PowerShares had $97 billion in ETF assets at the end of the third quarter.
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