DOWNERS GROVE, Ill.,
Oct. 9, 2015 /PRNewswire/
-- Invesco PowerShares Capital Management, LLC, a leading
global provider of exchange-traded funds (ETFs), announced the
launch of four new S&P 500® Factor ETFs, which were
listed today on the NYSE Arca:
- PowerShares S&P 500 Momentum Portfolio (SPMO)
- PowerShares S&P 500 Value Portfolio (SPVU)
- PowerShares Developed EuroPacific Currency Hedged Low
Volatility Portfolio (FXEP)
- PowerShares Japan Currency Hedged Low Volatility Portfolio
(FXJP)
PowerShares' new portfolios apply a factor-based approach
designed to generally correspond to the price and yield of
the S&P 500 Momentum Index, the S&P 500 Enhanced Value
Index, the S&P EPAC ex. Korea Low Volatility USD Hedged Index,
and the S&P Japan 500® Low Volatility USD
Hedged Index, respectively.
"Factor strategies can serve an important role in a diversified
portfolio," said Dan Draper,
Managing Director and Head of Invesco PowerShares. "By extending
our line-up of low volatility ETFs and adding new momentum and
value portfolios, we are offering investors more innovative ways to
incorporate factor strategies into their financial plans."
"Factor based indices continue to increase in popularity for
investors who seek alternatives to traditional market-cap weighted
indices," says Vinit Srivastava,
Senior Director of Strategy Indices at S&P Dow Jones Indices.
"We are proud to be the index provider for PowerShares'
comprehensive suite of factor ETFs based on the S&P 500."
Momentum and Value
SPMO is designed to track the
performance of stocks in the S&P 500 Index that have a high
"momentum score," based on upward price movements of the security
as compared to other eligible securities within the S&P 500
Index. SPVU is designed to track the performance of stocks in the
S&P 500 Index that have a high "value score," calculated based
on book value-to-price ratio, earnings-to-price ratio, and
sales-to-price ratio.
Currency Hedged
FXEP is designed to provide access to
the 200 least volatile stocks in the S&P EPAC Ex. Korea
LargeMidCap Index based on their volatility over the past year.
Constituents are weighted relative to the inverse of their
volatility with the least volatile stocks receiving the highest
weightings. The portfolio is then 100% currency hedged to the US
dollar using rolling one month forward contracts.
Investing in Japan can result
in the dual risk of uncertain stock selection and foreign exchange
fluctuations. FXJP can be added to a portfolio with Japanese equity
exposure to potentially help mitigate unexpected equity market
developments through exposure to a low volatility strategy that
seeks to dampen currency risk via the currency hedge feature.
These new ETFs are the next installment of the firm's
established lineup of five smart beta funds derived from components
of the S&P 500 Index, including: PowerShares S&P 500 Low
Volatility ETF (SPLV), PowerShares S&P 500 High Quality ETF
(SPHQ), PowerShares S&P 500 High Dividend ETF (SPHD),
PowerShares S&P 500 High Beta ETF (SPHB), and PowerShares
S&P 500 ex-Rate Sensitive Low Volatility ETF (XRLV).
To learn more about the Invesco PowerShares factor-based ETFs,
please visit our Resources page and consider our latest paper
'Getting Smart about Beta' here:
https://www.invesco.com/portal/site/us/financial-professional/active-passive-investing/
About Invesco PowerShares Capital Management LLC and Invesco,
Ltd.
Invesco PowerShares Capital Management LLC is leading
the Intelligent ETF Revolution® through its family of
more than 140 domestic and international exchange-traded funds,
which seek to outperform traditional benchmark indexes while
providing advisors and investors access to an innovative array of
focused investment opportunities. With franchise assets of nearly
$100 billion as of October 7, 2015. PowerShares ETFs trade on both
US stock exchanges. For more information, please visit us at
invescopowershares.com or follow us on Twitter @PowerShares.
Invesco Ltd. is a leading independent global investment
management firm, dedicated to helping investors worldwide achieve
their financial objectives. By delivering the combined power of our
distinctive investment management capabilities, Invesco provides a
wide range of investment strategies and vehicles to our clients
around the world. Operating in more than 20 countries, the firm is
listed on the New York Stock Exchange under the symbol IVZ.
Additional information is available at www.invesco.com.
Important Risk Information
There are risks involved
with investing in ETFs, including possible loss of money. Shares
are not actively managed and are subject to risks similar to those
of stocks, including those regarding short selling and margin
maintenance requirements. Ordinary brokerage commissions apply. The
Fund's return may not match the return of the Underlying Index.
Investments focused in a particular industry are subject to
greater risk, and are more greatly impacted by market volatility,
than more diversified investments.
Equity risk is the risk that the value of equity securities,
including common stocks, may fall due to both changes in general
economic and political conditions that impact the market as a
whole, as well as factors that directly relate to a specific
company or its industry.
The Fund is considered non-diversified and may be subject to
greater risks than a diversified fund.
There is no assurance that the Fund will provide low
volatility.
The risks of investing in securities of foreign issuers can
include fluctuations in foreign currencies, political and economic
instability, and foreign taxation issues.
Stocks of small and mid-capitalization companies tend to be more
vulnerable to adverse developments, may be more volatile, and may
be illiquid or restricted as to resale than large companies.
Currency hedging can reduce or eliminate losses or gains and can
also be subject to imperfect matching between the derivative and
its reference asset. There is no assurance the Fund's hedging
strategy will be effective. Some foreign currency forward contracts
are less liquid, which may result in the Fund being unable to
structure its hedging transactions as intended and may be unable to
obtain sufficient liquidity in an underlying currency.
As a result, the Fund's hedging transactions may not
successfully reduce the currency risk included in the Fund's
portfolio.
The performance of an investment concentrated in issuers of a
certain region or country is expected to be closely tied to
conditions within that region and to be more volatile than more
geographically diversified investments.
The Fund is non-diversified and may experience greater
volatility than a more diversified investment. The Fund is subject
to certain other risks. Please see the current prospectus for more
information regarding the risk associated with an investment in the
Fund.
S&P® is a registered trademark of Standard & Poor's
Financial Services LLC (S&P) and Dow Jones® is a registered
trademark of Dow Jones Trademark Holdings LLC (Dow Jones). These
trademarks have been licensed for use by S&P Dow Jones Indices
LLC. S&P® and Standard & Poor's® are trademarks of S&P
and Dow Jones® is a trademark of Dow Jones. These trademarks have
been sublicensed for certain purposes by Invesco PowerShares
Capital Management LLC (Invesco PowerShares). The Index is a
product of S&P Dow Jones Indices LLC and/or its affiliates and
has been licensed for use by Invesco PowerShares. The Fund is
not sponsored, endorsed, sold or promoted by S&P Dow Jones
Indices LLC, Dow Jones, S&P or their respective affiliates and
neither S&P Dow Jones Indices LLC, Dow Jones, S&P or their
respective affiliates make any representation regarding the
advisability of investing in such product(s).
Shares are not individually redeemable and owners of the shares
may acquire those shares from the Fund and tender those shares for
redemption to the Fund in Creation Unit aggregations only,
typically consisting of 50,000, 75,000 and 100,000 shares.
Invesco Distributors, Inc. is the distributor of the PowerShares
Exchange-Traded Fund Trust. PowerShares® is a registered trademark
of Invesco PowerShares Capital Management LLC. Invesco PowerShares
Capital Management LLC (Invesco PowerShares) and Invesco
Distributors, Inc. are indirect, wholly owned subsidiaries of
Invesco Ltd.
Note: Not all products available through all firms.
Before investing, investors should carefully read the
prospectus/summary prospectus and carefully consider the investment
objectives, risks, charges and expenses. For this and more complete
information about the Fund call 800 983 0903 or visit
invescopowershares.com for the prospectus/summary
prospectus.
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SOURCE Invesco PowerShares Capital Management LLC