PowerShares ETFs and the “Intelligent ETF Revolution”

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PowerShares ETFs were the main topic on The ETF Store Show this past week as John Hoffman, Invesco PowerShares’ Director of ETF Institutional Sales & Capital Markets, joined us on the program.  PowerShares is the fourth largest ETF provider and described as “leading the Intelligent ETF Revolution through its family of more than 140 domestic and international index-based ETFs and actively managed ETFs”.  John discussed the unique PowerShares approach to ETFs and explained some of the most important factors he thinks investors should consider when comparing ETFs.  John also offered some excellent insight into recent ETF fund flows (i.e. where ETF investors are placing their money).

In our weekly market update, we discussed the latest jobs report and debated whether this overall positive report could actually end up being bad for your investments.  While the Federal Reserve and “Helicopter Ben” have certainly been more than accommodating, concern is rising that continued economic improvement may actually result in the so-called punchbowl being taken away just as the party really gets going.  We explained the potential impact this could have on your investments.  In our ETF spotlight segment, we examined the PowerShares Emerging Markets Sovereign Debt ETF (ticker PCY).  It’s been our experience that far too many investors fail to have proper diversification in the fixed income portion of their investment portfolios, with a particular bias towards US bonds.  An ETF such as PCY can offer much needed diversification to a fixed income portfolio.