As if we did not have enough exchange-traded funds already, PowerShares recently added six more to the growing tally. They are:

PowerShares 1-5 Year Laddered Investment Grade Corporate Bond ETF (TSX: PSB) tracks the performance of a bond ladder comprised of Canadian investment-grade corporate bonds maturing in one to five years. The management fee is 0.25%.

PowerShares Ultra DLUX Long Term Government Bond ETF (TSX: PGL) tracks the performance of market-cap weighted index of federal and provincial bonds with a remaining maturity greater than 10 years. The management fee is 0.25%.

PowerShares Fundamental High Yield Corporate Bond (CAD Hedged) ETF (TSX: PFH) tracks a fundamental index comprised of debt issued by publicly-traded companies with maturity ranging from 1 to 10 years. The bonds are weighted by a combination of sales, cash flow, dividends and book values. The fund hedges its exposure to the US dollar. The management fee is 0.65%.

PowerShares Canadian Dividend ETF (TSX: PDC) tracks a market-cap weighted index of Canadian dividend stocks that have stable or increasing annual dividend payments for the past five or more consecutive years. The management fee is 0.50%.

PowerShares Canadian Preferred Share ETF (TSX: PPS) tracks an index of Canadian preferred shares. The management fee is 0.45%.

PowerShares QQQ (CAD Hedged) Index ETF (TSX: QQC) tracks the Nasdaq 100 index and hedges the exposure to the US dollar. The management fee is 0.32%.

It is very hard to get excited with these new ETFs because we already have products representing the same asset class at similar price points. Take the PowerShares Dividend ETF. Two popular dividend ETFs — Claymore S&P/TSX Canadian Dividend ETF (TSX: CDZ) and iShares Dow Jones Canada Select Dividend ETF (TSX: XDV) — already provide plenty of choice for investors wanting exposure to dividend paying stocks.

This article has 2 comments

  1. You can’t blame the investment companies for putting out what the consumer wants. Personally, I think the more ETFs out there, and the more pressure it puts on the mutual fund industry the better it is. Until fees for active management come down to a more reasonable level there is absolutely no debate about long-term investing results (although some would argue that even with reduced fees, active management is still not worth it, but that’s another debate for another time).

  2. The more competition, the better. Fees will come down and that’s a good thing.