PowerShares Capital Management LLC, which offers exchange-traded funds (ETFs) that seek to beat the performance of indexes rather than simply track them, plans to introduce three dividend-oriented funds next week.
The new Dividend Achievers Portfolio and the High Growth Rate Dividend Achievers Portfolio invest in U.S. companies with histories of increasing dividends over a 10-year period. Specifically, Dividend Achievers buys companies that have increased their annual dividends for a minimum of 10 consecutive years, while High Growth Rate Dividend Achievers invests in stocks with the fastest dividend growth rate over the last 10 years.
The third ETF, the International Dividend Achievers Portfolio, invests in foreign companies that have increased their dividends for at least five consecutive years and whose stocks trade on U.S. exchanges.
The funds, which are slated to trade on the American Stock Exchange starting September 15, are based on indexes developed by Mergent Inc., which provides financial information on companies. PowerShares debuted High Yield Equity Dividend (PEY), another ETF based on a Mergent index, last December.