PowerShares cross-lists smart beta EM ETF in Germany

Jun 27th, 2016 | By | Category: Equities

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Global exchange-traded fund provider InvescoPowerShares has cross-listed its PowerShares FTSE Emerging Markets High Dividend Low Volatility UCITS ETF (EMHD) to Xetra and Börse Frankfurt. The ETF was first listed on the London Stock Exchange in May this year.

PowerShares cross-lists high div low vol ETF in Germany

Bryon Lake, Head of Invesco PowerShares – EMEA.

The smart beta ETF tracks stocks from emerging markets with high dividend yields and low price volatility. It trades in US dollars and tracks the performance of the FTSE Emerging High Dividend Low Volatility Net Total Return Index. The index is constructed by initially ranking all constituents of the FTSE Emerging Index in descending order according to their trailing 12-month dividend yields. The top 150 stocks are selected. Of these the 100 companies with the lowest volatility are selected to form the benchmark.

Constituents are weighted according to their dividend yields. The weight of each constituent is capped, such that the maximum individual company weight does not exceed 3% and the maximum ICB industry weight does not exceed 25%. The fund has a TER of 0.49%.

The fund is part of a suite of high dividend low volatility ETFs provided by PowerShares. The range includes the PowerShares S&P 500 High Dividend Low Volatility UCITS ETF (LSE: HDLV), launched in May 2015, the PowerShares EURO STOXX High Dividend Low Volatility UCITS ETF (LSE: EUHD), launched in January 2016, and the PowerShares FTSE UK High Dividend Low Volatility UCITS ETF (LSE: UKHD), launched in May 2016.

Bryon Lake, Head of Invesco PowerShares – EMEA, commented in a statement: “Dividend strategies and low volatility strategies are two of the most popular factors, according to Invesco’s European Investor Research. By combining the high dividend and low volatility screens, we are seeking to present the best of both factors for emerging markets equity exposure.”

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