Invesco PowerShares (formerly PowerShares Capital Management) is an American boutique investment management firm based in suburban

Chicago Chicago is the List of municipalities in Illinois, most populous city in the U.S. state of Illinois and in the Midwestern United States. With a population of 2,746,388, as of the 2020 United States census, 2020 census, it is the List of Unite ...

. The firm manages a family of

exchange-traded fund An exchange-traded fund (ETF) is a type of investment fund that is also an exchange-traded product, i.e., it is traded on stock exchanges. ETFs own financial assets such as stocks, bonds, currencies, debts, futures contracts, and/or comm ...

s or ETFs. The company has been part of

Invesco Invesco Ltd. is an American independent investment management company headquartered in Atlanta, Georgia, with branch offices in 20 countries. Its common stock is a constituent of the S&P 500 and trades on the New York Stock Exchange. Invesco oper ...

, which markets the PowerShares product, since 2006. Created in 2002, PowerShares funds use quantitative indices as a benchmark. There are currently over 120 PowerShares ETFs.''Trading ETFs'' by Deron Wagner 2012 Bloomberg Press page 25 PowerShares cover and emulate a variety of market indices; for example, the ''PowerShares QQQ'' () is designed to replicate the

NASDAQ-100 The Nasdaq-100 (NDX) is a stock market index made up of equity securities issued by 100 of the largest non-financial companies listed on the Nasdaq stock exchange. It is a modified capitalization-weighted index. The stocks' weights in the inde ...

Index. The ''PowerShares QQQ'' is one of the most widely traded shares on the stock market, according to writer John J. Murphy. PowerShares ETFs also cover the

commodities In economics, a commodity is an economic good, usually a resource, that specifically has full or substantial fungibility: that is, the market treats instances of the good as equivalent or nearly so with no regard to who produced them. Th ...

market, diversified and tiny or

microcap stock In business and investing, term microcap stock (also micro-cap) refers to the stock of Public company, public companies in the United States which have a market capitalization of roughly $50 million to $250 million. The shares of companies with a ...

s.''Commodity Strategies'' by Thomas J. Dorsey 2007 page 150 For instance, the PowerShares DB Commodity Index Tracking Fund, or DBC, which it developed with

Deutsche Bank Deutsche Bank AG (, ) is a Germany, German multinational Investment banking, investment bank and financial services company headquartered in Frankfurt, Germany, and dual-listed on the Frankfurt Stock Exchange and the New York Stock Exchange. ...

, allows for individual investors to invest in commodities by means of its ETF. The PowerShares DB Oil Fund (DBO) deals with the

crude oil Petroleum, also known as crude oil or simply oil, is a naturally occurring, yellowish-black liquid chemical mixture found in geological formations, consisting mainly of hydrocarbons. The term ''petroleum'' refers both to naturally occurring u ...

index.

History

The company was founded in 2002 as PowerShares Capital Management. In 2006 PowerShares Capital Management was acquired by

so that Invesco could get access to the ETF business and the company was renamed Invesco PowerShares. In 2006, PowerShares offered an exchange traded fund in the private equity market in a "diversified fashion", although a report in ''

BusinessWeek ''Bloomberg Businessweek'', previously known as ''BusinessWeek'' (and before that ''Business Week'' and ''The Business Week''), is an American monthly business magazine published 12 times a year. The magazine debuted in New York City in Septembe ...

'' suggested that analysts thought that the fund was "something people can live without". In 2005, PowerShares developed a fund to allow customers to invest in "tiny companies" or ''microcaps''; according to a report in the ''

New York Times ''The New York Times'' (''NYT'') is an American daily newspaper based in New York City. ''The New York Times'' covers domestic, national, and international news, and publishes opinion pieces, investigative reports, and reviews. As one of ...

'', the ''Powershares Zacks Micro Cap Portfolio'' owns 330 stocks which follow the index of Zacks Investment Research, and the PowerShares ETF re-evaluates these tiny companies weekly, removing those which "do not pass muster". In addition, the microcap ETF rebalances the entire index each quarter, according to the report. In 2010, the firm was involved in a trademark infringement dispute with Select Sector SPDR Trust over whether trading symbols, or ''tickers'', could be considered as brand names. In 2013 the William F. Sharpe Award for ETF Product of the Year went to the PowerShares Senior Loan Portfolio ETF .PowerShares Senior Loan Portfolio Recognized with William F. Sharpe Award for ETF Product of the Year
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References

{{Reflist Exchange-traded funds Financial services companies established in 2002 2002 establishments in the United States 2006 mergers and acquisitions

History

See also

References