PowerShares Capital Management has introduced two new exchange traded funds to the market: Dynamic Market Portfolio and Dynamic OTC Portfolio. Both are based on new quantitatively managed indexes from the American Stock Exchange.
While the new ETFs are subject to the human selection process of a portfolio manager - which PowerShares is touting as semi-actively traded - they are still the product of a quantitative selection process.
The Dynamic Market Portfolio Index selects 100 stocks of the 2,000 largest companies listed on Amex, the New York Stock Exchange and Nasdaq. The Dynamic OTC Intellidex Index selects 100 stocks of the 1,000 largest companies listed on Nasdaq.
Quantitative variables used in assessment include fundamental growth, timeliness, valuation and risk factors. Portfolios are adjusted on a quarterly basis.
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