Global ETF provider Invesco PowerShares has launched two new ETFs that provide investors with access to low volatility strategies covering emerging and international developed markets.
Invesco PowerShares expands range of low volatility ETFs.
The fund names and ticker symbols are as follows:
PowerShares S&P Emerging Markets Low Volatility ETF (EELV)
PowerShares S&P International Developed Low Volatility ETF (IDLV)
The two new funds have management fees of 0.45% and 0.35% respectively and expand PowerShares’ suite of low volatility ETFs to include key market segments outside of the United States.
The launch comes on the back of the highly successful PowerShares S&P 500 Low Volatility ETF (SPLV), which attracted the highest monthly inflows of all ETFs listed in 2011 and now has over $1 billion in AUM.
Volatility has become a popular theme for ETF issuers as investors seek to manage risk in an increasingly uncertain investment environment. Over the past year or so, a number of providers have launched volatility-related products, including iShares, Direxion, Russell, Nomura/Source and Barclay’s iPath.
“Given today’s market environment, investors are naturally seeking better ways to reduce volatility in their portfolios,” said Ben Fulton, Invesco PowerShares managing director of global ETFs. “We believe the PowerShares family of low volatility ETFs may provide investors a degree of protection in down cycles while still participating in upward trending cycles, and have the potential to improve risk-adjusted returns over the long term.”
The PowerShares S&P Emerging Markets Low Volatility Portfolio (EELV) is based on the S&P BMI Emerging Markets Low Volatility Index, which measures the performance of 200 of the least volatile stocks of the S&P Emerging BMI Plus LargeMid Cap Index.
The S&P Emerging BMI Plus LargeMid Cap Index includes all publicly listed equity securities with float-adjusted market values of at least $100 million and annual dollar value traded of at least $50 million from the following countries: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Hungary, India, Indonesia, South Korea, Malaysia, Mexico, Morocco, Peru, Philippines, Poland, Russia, South Africa, Taiwan, Thailand and Turkey.
The PowerShares S&P International Developed Low Volatility Portfolio (IDLV) is based on the S&P BMI International Developed Low Volatility Index, which measures the performance of 200 of the least volatile stocks of the S&P Developed ex US and South Korea LargeMid Cap BMI Index.
The S&P Developed ex US and South Korea LargeMid Cap BMI Index includes all publicly listed equity securities with float adjusted market values of at least $100 million and annual dollar value traded of at least $50 million from the following countries: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Israel, Italy, Japan, Luxembourg, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, and the United Kingdom.