Powershares: 2 More ETFs

In our last wednesday's posting, we discussed about PKB, a new exchange traded fund (ETF) based on the construction-industry. Last Wednesday, another PowerShares ETF began trading, which would track the Spade Defense Index (DXS), a basket of companies involved with defense, homeland-security and space exploration. For the year to date, the index is up more than 3%, and top holdings include Boeing Co. (BA) and United Technologies Corp. (UTX). The fund could be used as a short-term vehicle to play geopolitical developments such as terrorist attacks.

Another new PowerShare tracking an index of nanotechnology stocks is coming up soon and is expected to be a success with investors given the sector's potential growth. Nanotech companies develop materials and devices at the atomic and molecular level for a wide range of uses. Also, Archipelago Holdings Inc. (AX) earlier this year hinted at plans to list a separate nanotech ETF, its first, on its electronic exchange. The Chicago-based exchange, which is set to merge with the New York Stock Exchange, said it plans to launch an index calculation and dissemination service in the third quarter and has already received strong client interest.