PowerShares Capital Management received Securities and Exchange Commission approval to offer actively managed ETFs, the first to be given permission by the agency, according to a PowerShares news release.
PowerShares will offer four new funds Active AlphaQ, benchmarked against the Nasdaq 100 index; Active Alpha Multi-Cap, benchmarked against the S&P 500 index; Active Mega-Cap, benchmarked against the Russell 200; and Active Low-Duration, benchmarked against the Lehman Brothers 1-3 year U.S. Treasury index. AER Advisors will subadvise the AlphaQ and Multi-cap strategies while Invesco, parent of PowerShares, will subadvise the Mega-Cap and Low Duration funds.
This is an important milestone for the ETF industry, Bruce Bond, president and CEO of PowerShares, said in the release. He could not be reached for further comment.