Top Portfolio Products: PowerShares ETF Wins Sharpe Award; Wasatch Rolls Out New Fund

W.E. Donoghue & Co., Inc., in partnership with S & P and S-Networks, announced the launch of the Power Dividend Index (PWRDXTR). This pure yield index isolates the top 50 dividend-paying stocks from the S & P 500 Index, equally weights them across the 10 GIC sectors, rebalances quarterly and provides a tactical overlay to reduce exposure during a major market decline. As global markets reset, PWRDXTR adapts and improves a traditional investment strategy to deliver the potential for a better risk-adjusted return.

The Power Dividend Index Portfolio tracks W.E. Donoghue's Power Dividend Index, which is calculated by Standard and Poor's Custom Indexes and is predicated on the SDOGX Index of 50 stocks derived from the S&P 500 Index. The strategy uses a tactical overlay to determine a bullish or defensive posture. In a bullish posture, the index methodology selects the five stocks, equally weighted, in each of the ten GICS sectors that make up the S&P 500 that offer the highest dividend yields as of the last trading day of November. Technical indicators will shift the strategy to a defensive position, should market conditions warrant, and when in a defensive position the index will be invested in 90 day T-bills.

4) Euro Pacific Capital Introduces Market-Linked CD Offerings

Investors who wish to protect principal while still maintaining some exposure to the markets can now choose Euro Pacific Capital's market-linked certificates of deposit (MLCDs). MLCDs, new in 2012, offer principal protection when held to maturity, with up to $250,000 insured by the FDIC. They also offer potential returns based on the performance of various market measures, such as gold, silver, equities, commodities, or a basket of foreign currencies.

MLCDs offer the opportunity to participate in upside performance of an underlying market measure, subject to the terms of each specific MLCD. They are available for a minimum investment of $25,000 and increments of $1,000 thereafter, and the estate feature allows for redemption of the full principal amount at par, without interest, upon death or the adjudication of incompetence of the beneficial owner under certain circumstances, subject to the terms of the specific MLCD.

Three MLCDs are being offered for the month of December. The first tracks a basket of 10 commodity indices; the second, a proprietary long/short commodity strategy; and the third tracks a basket of the four BRIC currencies (Brazil, Russia, India and China). They are open through investment through the third week of December. Other new products will be available on a monthly basis.

5) Brown Brothers Harriman Launches ETF Connect Suite

Brown Brothers Harriman (BBH) has announced the launch of its new suite of ETF-specific products, ETF Connect, where ETF sponsors, authorized participants (APs), and administrator and custodian BBH can manage ETF operations through a single platform. Through ETF Connect, users have the ability to access new and enhanced ETF products including the recently launched APEX (AP Exchange).

APEX, specifically built for ETFs, provides workflow automation based on client specified creation/redemption order requirements that take place between the ETF sponsor, APs and BBH. Further, the tool supports custom baskets, as well as restricted securities at time of order placement. APEX is fully integrated with BBH's global custody, accounting and transfer agency (TA) systems to enable streamlined and efficient processing of transactions.

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Read the Dec. 7 Portfolio Products Roundup at AdvisorOne.