Bruce Bond developed a business
model at PowerShares Capital
Management to provide unique products in an emerging industry. While industry giants were offering exchange-traded
funds, or ETFs, that merely tracked benchmarks, PowerShares developed a new
methodology of index.
The company was
able to utilize this
“Intellidex” methodology to expand ETF
offerings into niche
industries, enabling it
to compete against
nationally recognized
institutions like State Street Global Advisors,
Bank of New York and Vanguard.
Bond also created a business plan that
included partnering with leading index
providers to help build the firm’s reputation and credibility. PowerShares is the
only ETF sponsor that has portfolios listed on the New York, NASDAQ and
American stock exchanges.
Bond differentiated his company from
other ETF providers early in the company’s history by creating value-added
portfolios when the rest of the industry
was offering benchmark products.
Offering portfolios that could provide
market-beating returns left PowerShares
in an ETF category by itself.
Bond’s vision for growth is global. In
March 2007, PowerShares completed a
transfer agreement for the most actively
traded security in the world — the QQQ.
With this acquisition, PowerShares’
assets tripled, allowing the firm to
expand marketing efforts. In addition,
the company plans to launch as many as
35 international ETFs in 2007. Currently,
it has two international portfolios.
PowerShares also intends to expand its
domestic family of ETFs, which is the
broadest and most comprehensive in the
world.
HOW TO REACH: PowerShares Capital Management,
www.powershares.com