Invesco PowerShares ETF Starts Trading

Invesco PowerShares announced the PowerShares CEF Income Composite Portfolio began trading Friday on the NYSE Arca under the ticker symbol PCEF.

Invesco said the PowerShares CEF Income Composite Portfolio is the first ETF designed to provide investors access to a portfolio of closed-end funds. The fund, which will issue monthly distributions, is expected to go ex-dividend on March 15.

It is based on the S-Network Composite Closed-End Fund Index. The fund will normally invest at least 80% of its total assets in securities of funds included in the underlying index. The rules-based index is designed to track the overall performance of a global universe of U.S.-listed closed-end funds.

Underlying index constituents are selected from a universe of approximately 350 closed-end funds and the index is rebalanced on a quarterly basis. To qualify for the index, a closed-end fund must have a stated investment objective of concentration in one of three sectors: taxable investment-grade fixed income, high-yield fixed income or option income; trade on a recognized U.S. stock exchange; have a minimum capitalization value greater than $100 million; have a total annual expense ratio of less than 2%; and have an average daily turnover of more than $500,000 per day for the three months prior to the rebalancing date.

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