PowerShares To Shut Door On 10 ETFs

Invesco PowerShares Capital Management LLC, a leading global provider of exchange-traded funds (ETFs) with more than $50 billion in franchise assets, announced that it plans to close 10 of its ETFs.

The 10 ETFs include:

  • PowerShares Dynamic Healthcare Services Portfolio (PTJ)
  • PowerShares Dynamic Telecommunications & Wireless Portfolio (PTE)
  • PowerShares FTSE NASDAQ Small Cap Portfolio (PQSC)
  • PowerShares FTSE RAFI Europe Portfolio (PEF)
  • PowerShares FTSE RAFI Japan Portfolio (PJO)
  • PowerShares Global Biotech Portfolio  (PBTQ)
  • PowerShares Global Progressive Transportation Portfolio (PTRP)
  • PowerShares NASDAQ-100 BuyWrite Portfolio (PQBW)
  • PowerShares NXQ Portfolio (PNXQ)
  • PowerShares Zacks Small Cap Portfolio (PZJ)

According to PowerShares, the last trading day on the NASDAQ and NYSE Arca exchanges for these ETFs will be December 14, 2010.  For those who own these ETFs and do not sell their shares on or before the last trading day will receive cash equal to the amount of the net asset value of their shares, which will include any capital gains and dividends, in the cash portion of their brokerage accounts on the liquidation date (currently scheduled for Dec. 21, 2010).  From a tax perspective, shareholders generally recognize a capital gain or loss equal to the amount received for their shares over their adjusted basis in such shares.

Despite the closure of these ETFs, the ETF industry as a whole continues to attract assets and grow at a healthy level.

Disclosure: No Positions

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About etftutor
Kevin Grewal is the founder, editor and publisher of ETF Tutor and serves as the editor at www.SmartStops.net, where he focuses on mitigating risk and implementing exit strategies to preserve equity. Additionally, he is the editor at The ETF Institute, which is the only independent organization providing financial professionals with certification, education, and training pertaining to exchange-traded funds (ETFs). Prior to this, Grewal was a quantitative analyst at a small hedge fund where he constructed portfolios dealing with stock lending, exchange-traded funds, arbitrage mechanisms and alternative investments. He is an expert at dealing with ETFs and holds a bachelor's degree from the University of California along with a MBA from the California State University, Fullerton. He is contributing author on The Street - his articles can also be found published on various sites including Yahoo! Finance, The Globe and Mail , Daily Markets, MSN Money, Seeking Alpha, Fidelity Investments, Traders Library, and Minyanville. Prior to this, Mr. Grewal was an analyst at a small hedge fund where he constructed portfolios dealing with stock lending, exchange-traded funds, arbitrage mechanisms and alternative investments. He is an expert at dealing with ETFs and holds

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