The PowerShares NASDAQ-100 BuyWrite Portfolio (ticker: PQBW) and PowerShares Nasdaq Internet Portfolio (ticker: PNQI) are expected to begin trading June 12, a press release said.
“The PowerShares NASDAQ-100 BuyWrite Portfolio provides a convenient, lower cost way for investors to access a covered call strategy on the 100 largest non-financial companies listed on the NASDAQ,” said Bruce Bond, president and CEO of Invesco PowerShares, in the release. “Investors may use this product to complement the PowerShares QQQ in their portfolios.’
The NASDAQ-100 BuyWrite Portfolio is based on the CBOE NASDAQ-100 BuyWrite Index. The index measures the total rate of return of an NASDAQ-100 covered call strategy, which consists of holding a portfolio indexed to the NASDAQ-100, and selling a succession of one-month at-the-money NASDAQ-100 call options. The index assumes that call options are written on the third Friday of each month, held until their expiration, and exercised options are settled in cash, Invesco says.
The PowerShares Nasdaq Internet Portfolio is based on the NASDAQ Internet Index—designed to track the performance of the largest and most liquid U.S.-listed companies engaged in Internet-related business. Invesco says the modified market capitalization index is rebalanced quarterly.
More information is available at www.invescopowershares.com.