Invesco to slow parade of new products after launching small-cap ETFs

Invesco PowerShares Capital Management LLC today launched nine small-cap-sector exchange-traded funds, but that’s going to be the last new offerings the firm rolls out for a while. The PowerShares S&P SmallCap Sector Portfolios will trade on the Nasdaq Stock Market and cover an array of sectors, including financials, health care and information technology. PowerShares sees a huge opportunity for small-cap-sector ETFs to outperform the markets coming out of the recession, said Benjamin T. Fulton, managing director and head of the global ETF business at the firm. In a chance of focus, PowerShares is planning to work on building up current offerings instead of developing new products, he said. Since Invesco Ltd. acquired PowerShares Capital Management Inc. in 2006, the firm has listed 139 new products. “We were in the IPO phase instead of the support phase,” Mr. Fulton said. “But we realize our asset growth is going to be from our existing products.” Given the number of products PowerShares has launched of late — into an increasingly saturated market, no less — the firm now wants to focus on supporting the sales and research efforts behind its existing offerings, Mr. Fulton said. PowerShares has created a new department dedicated to product management. The product strategy and research division, which is currently made up of seven people, is headed by John Feyerer, a former vice president for business operations at the firm. PowerShares still wants to be a leader in the ETF space, but wants to maintain the reputation of being a niche player, Mr. Fulton said. “We don’t want to become a supermarket,” he said. “But maybe a Whole Foods.”