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