PowerShares cross-lists two popular ETFs into Europe
Invesco PowerShares is cross-listing two of its most successful ETFs into Switzerland, with multiple currency options. They are:
PowerShares EQQQ Nasdaq-100 UCITS ETF (EQEU, EQCH, EQGB)
PowerShares US High Yield Fallen Angels UCITS ETF (FAEU, FACH)
The last two letters in each ticker denote the issues' currency.
EQEU will track the NASDAQ, the technologies-heavy American index. PowerShares NASDAQ tracker in the US has $52 billion in assets under management, making it one of the most successful ETFs in the world. PowerShares has recently set about listing it on more and more European exchanges, in various different currencies.
FAEU will track the debts of fallen angels. Fallen angels are companies whose debts have been downgraded from investment grade to junk by ratings agencies. The logic behind a fallen angels ETF is that downgraded corporate debts are often dumped quickly and heavily, as funds often have mandates preventing them holding junk debts. This quick heavy dumping presents an opportunity for investors - and ETFs - because it often means that the fallen angels' bonds are oversold and that their yields do not reflect their risk.
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