PowerShares Capital Management registered with the SEC to launch an electronically traded fund based on the USA Fundamental 1000 index, an alternative to traditional market-capitalization weighting, said Benjamin Fulton, senior vice president-product development. PowerShares licensed the index from FTSE, which formed a marketing and product development venture with Research Affiliates, which created the fundamental index, he said.
PowerShares officials are negotiating with the New York Stock Exchange, American Stock Exchange and Nasdaq on where to trade the new index, Mr. Fulton said. He expects a decision by mid-September.
"Rob (Arnott, chairman of Research Affiliates) created something that has the look of a benchmark but looks through to the fundamentals (of the underlying companies) to add value by the way it weights," Mr. Fulton said.
PowerShares officials are discussing with FTSE officials the possibility of licensing other ETFs based on other fundamental equity indexes, he said.