DOWNERS GROVE, Ill.,
April 6, 2017 /PRNewswire/
-- Invesco (NYSE: IVZ), a leading global provider of
exchange-traded funds (ETFs), announced today the launch of two new
factor ETFs. With these two funds, PowerShares now has 78 ETFs in
its factor line-up.
"We're putting client outcomes and investment preferences at the
center of our product development process," said Jason Bloom, Global Market Strategist at
PowerShares by Invesco. "Working closer with clients to understand
their unique investment objectives has led to more strategic ETF
solutions that have purpose in a portfolio."
PowerShares S&P 500 Value with Momentum Portfolio
(Bats: SPVM)
SPVM seeks to track the S&P
500 High Momentum Value Index, which is designed to measure the
performance of 100 stocks within the S&P 500® with attractive
valuations that have also demonstrated positive momentum.
The first step screens for value based on three price metrics:
price-to-book, price-to-earnings and price-to-sales. The resulting
stock universe is then assigned a value score, with the 200 most
attractively valued stocks selected for a momentum screen. From the
200 stocks, the 100 with the highest positive momentum score are
then selected for inclusion in the index. Stocks are weighted by
their value score and rebalanced semiannually.
This enhanced methodology is designed to provide a more robust
approach to the value factor. By using a momentum overlay, SPVM's
underlying methodology seeks to identify early movers with upward
price movement while also avoiding value traps, instances when a
stock appears cheap because it is trading at low multiples of
earnings, cash flow or book value, but the stock price remains low
and doesn't improve.
"S&P Dow Jones Indices has seen an increased popularity of
its factor indices, and most recently, a growing interest in
capturing multiple factors within one benchmark," said Vinit Srivastava, Managing Director of Strategy
Indices at S&P Dow Jones Indices. "For market participants, the
S&P 500 High Momentum Value Index and the S&P SmallCap 600
Quality Index are examples of how factors may be combined or
applied across capitalizations. We are happy to be working with
PowerShares in bringing these indices to market."
PowerShares S&P SmallCap Quality Portfolio (Bats:
XSHQ)
XSHQ seeks to track the S&P SmallCap 600 Quality Index,
which is designed to measure the highest-quality companies within
the S&P SmallCap 600 Index by selecting securities based on an
average of three quality metrics, which seek to capture a company's
profitability, earnings quality and financial risk.
The quality screens implemented in XSHQ seek to enhance
risk-adjusted returns by investing in companies with strong balance
sheets and proven profitability and earnings quality as measured by
accruals. Each stock is weighted by the total of its quality score
multiplied by its market capitalization; stocks with higher scores
receive relatively greater weights. Like SPVM, this fund and index
are rebalanced semiannually.
About Invesco
Invesco is an independent investment
management firm dedicated to delivering an investment experience
that helps people get more out of life. NYSE: IVZ;
www.invesco.com.
About PowerShares by Invesco
PowerShares by Invesco
is leading the Intelligent ETF Revolution® through its
family of more than 140 domestic and international PowerShares
exchange-traded funds (ETFs). PowerShares ETFs seek to outperform
traditional benchmark indexes while providing advisors and
investors access to an innovative array of focused investment
opportunities. PowerShares has US franchise assets exceeding
$110 billion as of December 30, 2016. For more information, please
visit us at powershares.com or follow us on Twitter
@PowerShares.
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. 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.
Investments focused in a particular industry or sector are
subject to greater risk, and are more greatly impacted by market
volatility, than more diversified investments.
The Funds are non-diversified and may experience greater
volatility than a more diversified investment.
Factor investing is an investment strategy in which securities
are chosen based on certain characteristics and attributes.
Price-to-book ratio (P/B Ratio) is a ratio used to compare a
stock's market value to its book value. It is calculated
by dividing the current closing price of the stock by the
latest quarter's book value per share.
Price-to-earnings ratio (P/E Ratio) is the ratio for valuing a
company that measures its current share price relative to its
per-share earnings.
Price-to-sales ratio, P/S ratio, or PSR, is a valuation metric
for stocks. It is calculated by dividing the company's market cap
by the revenue in the most recent year; or, equivalently, divide
the per-share stock price by the per-share revenue.
SPVM
Momentum style of investing is subject to the
risk that the securities may be more volatile than the market as a
whole or returns on securities that have previously exhibited price
momentum are less than returns on other styles of investing.
A value style of investing is subject to the risk that the
valuations never improve or that the returns will trail other
styles of investing or the overall stock markets.
XSHQ
Stocks of small-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.
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 (PowerShares). The Index is a product of
S&P Dow Jones Indices LLC and/or its affiliates and has been
licensed for use by 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).
An investment cannot be made into an index.
The S&P Index(es) (the "Index(es)") underlying the product
provider's (the "Issuer") investment products (the "Investment
Products") are proprietary to S&P Dow Jones Indices LLC
("S&P DJI"). S&P® and the names identifying the
Index(es) are trademarks of Standard & Poor's Financial
Services LLC and have been licensed for use by S&P DJI and
sublicensed for certain purposes by the Issuer. The Issuer's
Investment Products based on the Index(es) are not in any way
sponsored, endorsed, sold or promoted by S&P DJI, its
affiliates or licensors and those parties make no representations
or warranties, express or implied, regarding the advisability of
investing in securities generally or in the Investment Products
particularly or the ability of the Index(es) to track general
market performance.
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 10,000, 50,000, 75,000, 100,000 or
200,000 Shares.
PowerShares® is a registered trademark of Invesco Ltd., used by
the investment adviser, Invesco PowerShares Capital Management LLC
(PowerShares) under license. PowerShares and Invesco Distributors,
Inc., ETF distributor, are indirect, wholly owned subsidiaries of
Invesco Ltd.
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