Invesco Closing 13 PowerShares ETFs

February 22, 2013 by  
Filed under Commentary, ETF Closings

Tuesday, February 26, 2013 will be the last day of trading for 13 ETFs bearing the PowerShares brand.  The closures are part of an ongoing process at Invesco PowerShares to review and evaluate products and investor interest.  Invesco tends to be a leader in putting investors’ interest first, announcing (pdf) these closures more than two months ago and giving shareholders plenty of time to take action.  The closing ETFs are: 

  1. PowerShares Active Low Duration Portfolio (PLK)
  2. PowerShares Active Mega-Cap Portfolio (PMA)
  3. PowerShares Convertible Securities Portfolio (CVRT)
  4. PowerShares Dynamic Banking Portfolio (PJB)
  5. PowerShares Dynamic Insurance Portfolio (PIC)
  6. PowerShares Global Coal Portfolio (PKOL)
  7. PowerShares Global Nuclear Energy Portfolio (PKN)
  8. PowerShares Global Steel Portfolio (PSTL)
  9. PowerShares Global Wind Energy Portfolio (PWND)
  10. PowerShares Ibbotson Alternative Completion Portfolio (PTO)
  11. PowerShares Morningstar StockInvestor Core Portfolio (PYH)
  12. PowerShares Riverfront Tactical Balanced Growth Portfolio (PAO)
  13. PowerShares Riverfront Tactical Growth & Income Portfolio (PCA)

The average age of these 13 closures is 4.9 years, with three funds more than six years of age (PJB, PIC, and PYH) and only one less than four years old (CVRT).  At the time of the announcement, the average asset level was less than $10 million and all except PKOL were on ETF Deathwatch.  Two of the closures are actively managed ETFs (PLK and PMA). 

Shareholders not selling their holdings by February 26 will go through the termination and liquidation process, receiving final payment on March 7.  We strongly urge you to avoid the termination process by selling all shares with a limit order prior to the scheduled delisting.

These closings will put the year-to-date death toll at 17 versus just 14 launches.  Could 2013 be the first calendar year to produce a net decrease in the listed ETP count?

Disclosure covering writer, editor, and publisher:  No positions in any of the securities mentioned.  No positions in any of the companies or ETF sponsors mentioned.  No income, revenue, or other compensation (either directly or indirectly) received from, or on behalf of, any of the companies or ETF sponsors mentioned.

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