Water ETF Gets Note Treatment

Morgan Stanley has structured a capital-protected note around a PowerShares Capital Management exchange traded fund that references a novel water index. The PowerShares Water Resources Portfolio, with over USD2 billion under management, reflects the returns on an index made up of water-related companies.

Ed McRedmond, senior v.p. at PowerShares in Boulder, Colo., said Morgan Stanley approached the fund firm about the ETF following the launch of a structured note linked to PowerShares’ WilderHill Clean Energy ETF at the end of last year.