In The News
ETFs Tracking China, Dividends to Trade
12/7/2004
The Wall Street Journal
NEW YORK -- Two exchange-traded funds that will track China and dividend-paying stocks will begin trading on Thursday.
The PowerShares Golden Dragon Halter USX China Portfolio will track the Halter USX China Index, comprising U.S.-listed stocks of companies with a majority of their revenue from China. The PowerShares High Yield Equity Dividend Achievers Portfolio is based on the Mergent Dividend Achievers 50 Index, which includes the 50 highest-yielding companies with at least 10 consecutive years of dividend increases. Both were launched by PowerShares Capital Management LLC of Wheaton, Ill., and will trade on the American Stock Exchange.
Exchange-traded funds are investment vehicles that resemble index-tracking mutual funds but trade like stocks. Unlike mutual funds, they are easily traded, inexpensive and tax-efficient.
The Golden Dragon Halter ETF tracks 38 companies that generate more than half of their revenue from mainland China. They are all U.S.-listed companies or have American depositary receipts. The dividend ETF includes stocks that pay the highest dollar amount for dividends.
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