Illinois-based investment firm Elkhorn Investments has launched an exchange-traded fund offering access to investment grade preferred shares of US companies. The Elkhorn S&P High Quality Preferred ETF (Bats: EPRF) may appeal to investors looking for regular income-generating securities while still being able to participate in the upside potential of the firm. “Preferreds remain an area of strong investor interest given their relative high income,” said Ben Fulton, CEO of Elkhorn Investments. “We are excited to launch the first high quality preferred ETF, offering investors access to higher income through preferred securities without sacrificing credit quality.”

Invesco PowerShares, a leading provider of exchange-traded funds, has launched the PowerShares DWA Tactical Multi-Asset Income Portfolio (Nasdaq: DWIN). The Nasdaq-listed ETF harnesses proprietary methodology from Dorsey, Wright & Associates (DWA) which uses technical analysis to allocate to the strongest price-performers amongst a range of equity, bond and alternative income strategies. The ETF adopts a “fund of funds” structure, meaning that it invests its assets in other ETFs rather than in securities of individual companies. ETFs are selected based on a combination of relative strength indicators and current yield. (Picture, Tom Dorsey, founder of DWA).

Smart beta exchange-traded funds are more expensive than their market-cap-weighted counterparts, according to a report from Morningstar. The research report – “Assessing the True Cost of Strategic-Beta ETFs” – compared fees, replication costs and trading costs for 100 European-domiciled smart beta ETFs and 77 market-cap-weighted ETFs linked to broad equity benchmarks. The research found that the average total expense ratio a smart beta ETF using the S&P 500 as its parent index was three times higher than that of an ordinary S&P 500 ETF (0.43% compared to 0.14%).

Charles Schwab, a low cost broker, has unveiled the Schwab ETF OneSource 2016 ETF Industry Outlook, an interactive microsite that explores the ETF topics and trends that will be most important to investors and advisors in the year ahead. Heather Fischer, Vice President of ETF Platform Management at Charles Schwab, commented: “The Schwab ETF OneSource 2016 ETF Industry Outlook is a dynamic collaboration among Schwab ETF OneSource participants designed to shed light on the ETF landscape and provide investors with practical insights about ETF investing in today’s market environment.”

While market volatility will continue to fuel the growing popularity of multi-factor smart beta strategies in 2016, there will be greater focus on diversification than trying to predict which factor will dominate, according to asset management research firm Cerulli. “Over the past year as market uncertainty has reigned, multi-factor smart beta strategies have garnered greater interest. We expect total assets under management to continue to increase not only in Europe but in the US and Asia as well,” said Justina Deveikyte, a senior analyst at Cerulli.

Aequitas NEO, a Canada-based start-up stock exchange, has announced the first exchange-traded fund to list on its platform will be from the PowerShares division of Invesco Canada. The PowerShares Dorsey Wright Associates (PDWA) Global Momentum Index ETF is due to begin trading in early March subject to the approval of regulatory authorities. In a bid to attract corporate clients Aequitas NEO offers competitive listing fees that currently undercut those offered by the Toronto Stock Exchange. The firm also touts a variety of benefits including a robust system ensuring reliable liquidity and free real-time market data to enhance visibility.

Asset manager Invesco has expanded its services into the robo-advisor space with the acquisition of Jemstep, a digital platform specialising in providing online tailored investment advice to financial advisors. Investors using Jemstep will complete a personal questionnaire regarding their investment goals, risk tolerance and time frame. The robo-advisor will then use an algorithm to form portfolios based on each client’s specific requirements.

European index provider Stoxx Limited has launched a new high dividend, low volatility index that uses the top 50 stocks of the Euro Stoxx Index. The Euro iStoxx High Dividend Low Volatility 50 Index has been licensed to Invesco PowerShares to underlie an exchange traded fund that launched on the London Stock Exchange on 8 January 2015 and is due to be cross-listed on other European exchange in coming months.

Exchange traded fund provider Invesco PowerShares has launched a new ETF that targets exposure to high dividend paying eurozone stocks while minimising volatility. The PowerShares EURO STOXX High Dividend Low Volatility UCITS ETF (EUHD) began trading in euros on the London Stock Exchange on 8 January 2016.

Invesco PowerShares, a leading global provider of exchange-traded funds, today joined Research Affiliates, a pioneer in smart beta strategies, to ring the New York Stock Exchange opening bell to recognise the 10th anniversary of the PowerShares FTSE RAFI US 1000 Portfolio ETF (PRF), the first fundamental index strategy ETF. The ETF can be considered one of the precursors to the smart beta movement we see in full swing today. “We launched PRF nearly ten years ago on 19 December 2005, which we believe was turning point in providing individual investors broad access to strategies now termed smart beta,” said Dan Draper, Managing Director and Head of Invesco PowerShares.