Invesco cuts fees on two PowerShares S&P 500 factor ETFs

Dec 27th, 2017 | By | Category: Equities

Factor Investing Strategy Briefing - Thursday 29th June 2023 - The Connaught, Mayfair. Please join us for our annual smart beta and factor investing event, featuring Goldman Sachs Asset Management, FlexShares, First Trust, MSCI and WisdomTree. Please register now if you would like to attend.

Invesco has lowered the fees charged on two NYSE Arca-listed ETFs, the PowerShares S&P 500 Momentum Portfolio (SPMO US) and the PowerShares S&P 500 Enhanced Value Portfolio (SPVU US), from 0.25% to 0.13%, effective 1 January 2018.

Invesco cuts fees on two PowerShares S&P 500 factor ETFs

Dan Draper, global head of ETFs at Invesco.

Dan Draper, global head of ETFs at Invesco, commented, “We are constantly evaluating our product offerings to ensure that we are offering cost-efficient investment solutions to meet the needs of our investors.”

The range of PowerShares S&P 500 factor ETFs includes seven funds. In addition to momentum and enhanced value, the provide exposure to low volatility, high beta, quality, minimum variance, and value with momentum.

They have fees varying from 0.13% and 0.30%.

Each ETF in the suite tracks a selection – approximately 100 – of constituents from the bellwether S&P 500 which have the highest exposure to the relevant factor. Constituents are then typically weighted to enhance exposure to that particular factor.

While Invesco has not extended this range of single-factor ETFs to Europe, it has introduced a multi-factor variation on the S&P 500 – PowerShares S&P 500 QVM UCITS ETF (PQVM LN) – which launched on London Stock Exchange in May 2017. The ETF tracks those companies which have the highest aggregate exposure to three investment factors: quality, value and momentum, and may suit investors looking to smooth the higher volatility generally associated with a single-factor strategy. It charges 0.35% in fees.

Tags: , , , , , , , ,

Leave a Comment