Invesco PowerShares launched its first actively managed equity exchange-traded funds in April. The four new PowerShares funds are: o Active AlphaQ, benchmarked against the Nasdaq-100 index (PQY) o Active Alpha Multi-Cap, benchmarked against the S&P 500 index (PQZ)o Active Mega-Cap, benchmarked against the Russell Top 200 index (PMA) o Active Low-Duration, benchmarked against the Lehman Brothers 1-3 year U.S. Treasury index (PLK)
According to PowerShares, the benefits of active ETFs include lower costs compared to actively managed mutual funds, trading flexibility and the potential for greater tax savings. Investors would still bear the transaction costs of buying or selling their shares.
All three stock funds will charge annual expense ratios of 0.75 percent and the lone bond fund will charge 0.29 percent.