The new PowerShares ETFs are: the Dividend Achiever Portfolio (PFM); the High Growth Dividend Achiever Portfolio (PHJ); and the International Dividend Achiever Portfolio (PID). The introduction of these products, which will be the fourth ETF from PowerShares based on a Mergent Index, follows the successful launch of the High Yield Equity Dividend Achievers ETF (PEY) in December 2004.
"These new ETFs come at a time of strong interest in dividends as a component of overall returns," said Cliff Weber, senior vice president of the Amex's ETF Marketplace. "They give investors an opportunity to participate in an area of tremendous growth, and unite two innovative market participants with strong ties to the Amex."
Bruce Bond, President of PowerShares Capital Management, said "We are pleased to be working again with Mergent expanding our dividend portfolios for investors. Included in today's offerings is the first international dividend ETF listed in the U.S. We now have four distinct dividend portfolios establishing PowerShares as a leader in dividend-based ETFs."
Mergent, which owns and maintains the indexes underlying the three new ETFs, developed the proprietary methodology by which it identifies Dividend Achievers as companies that have consistently increased their regular annual dividends to shareholders for many consecutive years (10 years or longer for U.S. companies, five years or longer for foreign companies). Indexes composed of these companies tend to outperform the overall market over the long term, and with lower volatility.
The Mergent Dividend Achievers Index (which includes all U.S. Dividend Achievers), is weighted according to market capitalization, and for 2005 is composed of 314 U.S.-listed stocks (listed on the American Stock Exchange and New York Stock Exchange or quoted on the Nasdaq National Market).
The indexes underlying the three new ETFs launched today are the Mergent Dividend Achievers Index (ticker "DAA"); the High Growth Rate Dividend Achievers Index ("DAH"), a sub index of DAA; and the International Dividend Achievers Index ("DAT"), which includes Dividend Achievers companies in Europe, Asia and Canada.
"We have experienced ever-increasing demands for investment products related to our Dividend Achievers Indexes, and are very pleased to continue our relationship with the Amex and with PowerShares in helping to create investment products that meet the needs and demands of the market, both institutional and individual," said Mergent CEO Jonathan Worrall. "This is truly a time when the benefits of dividend-focused investing are being recognized once again as an excellent long-term investment opportunity."
