Invesco PowerShares has licensed Morningstar's latest StockInvestor Core index, to serve as the new underlying for an existing PowerShares ETF listed in the US.
The PowerShares Value Line Industry Rotation Portfolio ETF, which trades on NYSE Arca, has been renamed as the PowerShares Morningstar StockInvestor Core Portfolio, to mirror the benchmark change.
The newly created index comprises stocks from Morningstar's Tortoise and Hare portfolios, which consist of high-quality companies trading at sharp discounts to what Morningstar's equity research analysts think they should be valued at.
Morningstar Indexes director Sanjay Arya says: "This index spotlights Morningstar's disciplined approach to investing and stock picking, using fundamental analysis and the Morningstar Economic Moat Rating to determine whether a company's stock price is fairly valued."
The index's constituent portfolios focus on stocks of relatively stable, high-quality businesses, spanning industries and regions, while being firmly established in the markets in which they operate.
Morningstar's equity analysts conduct research on industry dynamics, competitive positions and the sustainability of any advantages the businesses have.
To be included in the StockInvestor Core index, a stock must have $100m in market capitalisation, a Morningstar Economic Moat rating of "narrow" or "wide" and a Morningstar Rating for stocks of at least four stars.
There are 10 ETFs and one exchange-traded note tracking Morningstar indices.
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