MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication
an InvestmentWires' Publication
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MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication |
|
Monday, July 12, 2004 Broker-Sold ETFs on the Horizon If all goes well at the SEC, PowerShares could be tapping brokers to help sell a rash of new ETFs as early as this fall. Powershares has so far filed a registration statement for seven broker-sold funds, but plans on updating the filing with additional funds later this week, said John Southard, PowerShares spokesman.
Brokers will receive 2 percent of the total purchase price, but secondary market sales of the shares will not have sales commissions. The seven funds will be traded on the American Stock Exchange. If approved, PowerShares hopes to launch a few of the new ETFs each month, with plans to continue selling through brokers in the future, said Southard. Although PowerShares is accustomed to working through advisors, the sales process of broker-sold ETFs will be a little different, said Southard. Because only primary market sales will have commissions, the offering will have a "little more…look and feel of a syndication process," said Southard. "We're hoping that the process will create awareness and urgency…and encourage advisors to react," said Southard. To help create that sense of urgency, PowerShares will rely on the communication channels it currently uses, targeting brokers using a combination of mailings, emails and phone calls. Printed from: MFWire.com/story.asp?s=7588 Copyright 2004, InvestmentWires, Inc. All Rights Reserved | |||||||||||