Invesco PowerShares has announced the forthcoming listing of two new ETFs that will provide investors with access to high-beta strategies covering emerging and international developed markets.
Invesco PowerShares expands the High Beta family of ETFs with the launch of Emerging Markets and International Developed funds.
The ETFs are expected to begin trading on 24 February, 2012, on the NYSE Arca. The two new fund names and ticker symbols are as follows:
PowerShares S&P Emerging Markets High Beta Portfolio (EEHB)
PowerShares S&P International Developed High Beta Portfolio (IDHB)
Back in May 2011, Invesco PowerShares launched the first ETFs covering high beta and low volatility strategies for the US market. Today, with over $1.3 billion in AUM, the suite of PowerShares Global Factor-Driven ETFs equips advisers and investors with a disciplined approach and full range of tools for increasing beta or lowering volatility in their portfolios.
“PowerShares Global Factor-Driven ETFs represent a new way for investors seeking to manage equity exposure by using specific factor weighted ETFs as building blocks,” said Ben Fulton, Invesco PowerShares managing director of global ETFs.
“Investors are seeking a more tactical approach to investing and we believe the PowerShares Global Factor-Driven ETFs can provide an efficient means to capitalise on bull markets by adding beta to their portfolio, while having the flexibility to reduce risk in flat or bear markets by adding low volatility strategies to their portfolio.”
The PowerShares S&P Emerging Markets High Beta Portfolio is based on the S&P BMI Emerging Markets High Beta Index. The fund will invest at least 90% of its total assets in the securities of companies that comprise the index. The index consists of the 200 stocks in the S&P Emerging BMI Plus LargeMid Cap Index that are the most sensitive to changes in market returns (or beta) over the past 12 months. Constituents are weighted by their corresponding beta, with the most sensitive stocks receiving the highest weights.
The PowerShares S&P International Developed High Beta Portfolio is based on the S&P BMI International Developed High Beta Index. The fund will invest at least 90% of its total assets in the securities of companies that comprise the index. The index consists of the 200 stocks in the S&P Developed ex. US and South Korea LargeMid Cap BMI Index that are the most sensitive to changes in market returns (or beta) over the past 12 months. Constituents are weighted by their corresponding beta, with the most sensitive stocks receiving the highest weights. Although the funds seek to add beta, there is no assurance that the funds will meet that goal.
In addition to the soon-to-be-launched EEHB and IDHB funds, the PowerShares suite of high beta and low volatility strategies includes:
PowerShares S&P 500 High Beta Portfolio (SPHB)
PowerShares S&P 500 Low Volatility Portfolio (SPLV)
PowerShares S&P Emerging Markets Low Volatility Portfolio (EELV)
PowerShares S&P International Developed Low Volatility Portfolio (IDLV)