PowerShares unveils ETFs

PowerShares Capital Management LLC launched four exchange traded funds, based on the FTSE RAFI indexes, on the New York Stock Exchange today. The new funds: the Europe Portfolio (PEF), Japan Portfolio (PJO), Asia Pacific ex-Japan Portfolio (PAF) and the Fundamental Index Developed Markets ex-U.S. Portfolio (PXF) are designed to track the largest equities in each country or region based on a company's book value, income, sales and dividends. Research Affiliates LLC is based in Pasadena, Calif. The funds rank the 1,000 equities in each country or region with the highest fundamental strength are weighted according to their fundamental scores. All of the funds have an expense ratio of 0.75%, except for the Asia Pacific Ex-Japan fund, which has an expense ratio of 0.80%. "We believe that these portfolios offer material enhancements to the cap-weighted ETFs currently available in the space," said Bruce Bond, president of PowerShares, according to a statement. The Wheaton, Ill.-based ETF company is a subsidiary of London-based INVESCO PLC and has 95 ETFs and manages $11.58 billion in assets.