PowerShares converts Dynamic ETFs to FTSE RAFI

PowerShares is converting a range of five Dynamic ETFs to track FTSE RAFI indices following approval by shareholders.

The five funds that will be switched to the new benchmarks with effect from 1 February include the PowerShares Dyanamic Europe, Global Developed Markets, Japan, UK and Italy funds.

These will track a range of FTSE RAFI indices comprising the Emerging Markets, Asia Pacific Ex-Japan, Hong Kong China, All-World 3000 and Switzerland index respectively.

The fees charged for the Europe fund, which becomes the FTSE RAFI Emerging Markets ETF, will increase from 0.75% to 0.85% per year.

Fees for the Global Developed Markets fund, which will be renamed the FTSE RAFI Asia Pacific Ex-Japan fund, will increase from 0.75% to 0.8% per year.

The funds fully replicate the underlying indices with the exception of the FTSE RAFI All-World 3000 ETF, which will be optimised rather than owning all 3000 stocks.

All the ETFs are listed on the London Stock Exchange except for the FTSE RAFI Swiss fund, as well as other major exchanges across Europe.