powershares launched as mutual funds

"For example, the Canadian PowerShares FTSE RAFI Canadian Fundamental Index Class, will use Research Affiliates Fundamental Indexing methodology. A number of the other ETFs use sector targeted exposure to alternative asset classes such as agriculture, clean energy and clean water indexes, provided by alternative index providers such as Palisades, Indxis and WilderHill.

"This is an innovative way to bring the product to market. If you buy an ETF on the Toronto Stock Exchange, they are all created and offered as fund trusts. Our products are offered as mutual fund corporations, which are available across 38 different share classes," Ciampaglia explains. "It also allows us to utilize all the capital carry forward benefits and a very high level of tax efficiency, eliminating or reducing the need to produce capital gains distributions [on transfers].""

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