Can a Bum Ticker Kill A Portfolio?

A little-noticed lawsuit says a lot about how investments are marketed. ALate last month, Select Sector SPDR Trust sued Invesco PowerShares for trademark infringement. The suit alleges that by using similar trading symbols, or "tickers," to those of the Select Sector SPDR exchange-traded funds, PowerShares dealt "damage to the value" of its competitor’s offerings. AIn April, PowerShares introduced nine sector funds based on components of a Standard & Poor’s small-stock index. The SPDR family already had nine sector ETFs of its own pegged to the bigger stocks in the S&P 500 index. Each SPDR sector fund has a ticker beginning in "XL." For its new funds, PowerShares chose tickers that also begin in "XL" but end with an S. The trading symbol for PowerShares S&P SmallCap Energy Portfolio, for instance, is XLESaidentical to the SPDR Energy fund’s ticker of XLE, plus an S.

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Posted: August 13th, 2010
at 7:37pm by Koookiecrumbles


Categories: trade,trademark & copyright

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