DOWNERS GROVE, Ill., July 14, 2016 /PRNewswire/ -- Invesco PowerShares Capital Management, LLC, a leading global provider of exchange-traded funds (ETFs), announced today the launch of the PowerShares DWA Momentum & Low Volatility Rotation Portfolio (DWLV), the first ETF to use DWA's powerful Dynamic Asset Level Investing (DALI) tool. DALI uses relative strength analysis to rank macro asset classes based on developing leadership trends within global capital markets.
"As one of the earliest pioneers of low volatility ETFs, we have seen the power of factor-based strategies in full force this year for investors around the world," said Dan Draper, Head of Invesco PowerShares. "In this new product, we're combining low volatility and momentum in a blended strategy that further demonstrates our belief that the future of portfolio construction will be driven by factor strategies."
DWLV is a one-ticket solution designed to provide exposure to the low volatility and momentum factors plus developing leadership trends within global capital markets.
Using DALI's relative strength analysis1, DWLV's underlying index ranks US equities, international equities and cash from strongest to weakest. Based on the relative strength results, the Index allocates among eight PowerShares US and international equity ETFs and cash (via 1- to 6-month US Treasury Bills).
"We are excited to launch this latest multi-factor strategy as part of our longstanding partnership with PowerShares," said Tammy DeRosier, President of Dorsey, Wright & Associates, a Nasdaq Company. "This index is a complimentary strategy to other DWA indices that underlie PowerShares ETFs, such as PowerShares DWA Tactical Sector Rotation Portfolio (DWTR) and PowerShares DWA Tactical Multi-Asset Income Portfolio (DWIN)."
Through its design, DWLV's underlying index offers pure exposure to the low volatility factor, without sector constraints, blended with an ability to identify meaningful momentum trends for potential diversification benefits. DWLV also offers global tactical exposure by tracking the Dorsey Wright Multi-Factor Global Equity Index, which systematically evaluates on a monthly basis the relative strength of six global asset classes in determining an allocation between US and international equity ETFs and cash.
To learn more about the Invesco PowerShares factor-based ETFs, please visit our Factor Investing page here: http://powershares.com/factor
About Invesco PowerShares Capital Management LLC and Invesco, Ltd.
Invesco PowerShares Capital Management LLC is leading the Intelligent ETF Revolution® through its family of more than 140 domestic and international exchange-traded funds, which seek to outperform traditional benchmark indexes while providing advisors and investors access to an innovative array of focused investment opportunities. With US franchise assets of approximately $94 billion as of March 31, 2016, PowerShares ETFs trade on both US stock exchanges. For more information, please visit us at invescopowershares.com or follow us on Twitter @PowerShares.
Invesco Ltd. is a leading independent global investment management firm, dedicated to helping investors worldwide achieve their financial objectives. By delivering the combined power of our distinctive investment management capabilities, Invesco provides a wide range of investment strategies and vehicles to our clients around the world. Operating in more than 20 countries, the firm is listed on the New York Stock Exchange under the symbol IVZ. Additional information is available at www.invesco.com.
About Dorsey, Wright & Associates, LLC (DWA)
Dorsey, Wright & Associates, a Nasdaq Company, is a registered investment advisory firm based in Richmond, Virginia. Since 1987, Dorsey Wright has been an advisor to financial professionals on Wall Street and investment managers worldwide. Dorsey Wright offers comprehensive investment research and analysis through their Global Technical Research Platform and provides research, modeling and indexes which apply Dorsey Wright's expertise in Relative Strength to various financial products including exchange trade funds, mutual funds, UITs, structured products, and separately managed accounts. Dorsey Wright's expertise is technical analysis. The Company uses Point & Figure Charting, Relative Strength analysis, and numerous other tools to analyze market data and deliver actionable insights. In 2015, Dorsey Wright was acquired by Nasdaq, Inc. allowing Dorsey Wright to work towards even greater innovative solutions for its clients. To take a free trial of the platform, visit here.
An investment cannot be made directly into an index.
As constraints could result in the inclusion of stocks that may not be the lowest volatility stocks within their universe, we refer to the PowerShares low volatility ETFs' unconstrained methodology as the "pure" approach to low volatility.
Smart Beta represents an alternative and selection index based methodology that seeks to outperform a benchmark or reduce portfolio risk, or both in active or passive vehicles. Smart beta funds may underperform cap-weighted benchmarks and increase portfolio risk. Beta is a measure of risk representing how a security is expected to respond to general market movements.
There are risks involved with investing in ETFs, including possible loss of money. Shares are not actively managed and are subject to risks 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 prospectus for more information regarding the risks associated with an investment in the fund.
The Fund is subject to the risks of the underlying funds. Market fluctuations may change the target weightings in the underlying funds and certain factors may cause the Fund to withdraw its investments therein at a disadvantageous time.
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.
There is no assurance that the Fund will provide low volatility.
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 Fund is non-diversified and may experience greater volatility than a more diversified investment.
The risks of investing in securities of foreign issuers, including emerging market issuers, can include fluctuations in foreign currencies, political and economic instability, and foreign taxation issues.
Obligations issued by US Government agencies and instrumentalities may receive varying levels of support from the government, which could affect the fund's ability to recover should they default. Fixed-income investments are subject to credit risk of the issuer and the effects of changing interest rates. Due to anticipated Federal Reserve Board policy changes, there is a risk that interest rates will rise in the near future.
The Fund will indirectly pay a proportional share of the expenses of the underlying ETFs in which it invests (including operating expenses and management fees), in addition to the fees and expenses it already will pay to the Adviser.
The fund may engage in frequent trading of its portfolio securities in connection with the rebalancing or adjustment of the Underlying Index.
1 The relative strength strategy is NOT a guarantee. There may be times where all investments and strategies are unfavorable and depreciate in value. Investors should not act on any recommendation (express or implied) or information in this material without obtaining specific advice from their financial advisor and should not rely on the information herein as the primary basis for investment decisions.
There is no relationship between Dorsey, Wright & Associates, LLC ("Dorsey Wright") and Invesco PowerShares ("PowerShares") other than a license by Dorsey Wright to PowerShares of certain Dorsey Wright trademarks, tradenames, investment models, and indexes (the "DWA IP"). DWA IP has been created and developed by Dorsey Wright without regard to and independently of PowerShares, and/or any prospective investor. The licensing of any DWA IP is not an offer to purchase or sell, or a solicitation of an offer to buy any securities. A determination that any portion of an investor's portfolio should be devoted to any ETF product developed by PowerShares or investment model developed by Dorsey Wright is a determination made solely by the investment advisor serving the investor or the investor himself, not Dorsey Wright.
Note: Not all products available through all firms or in all jurisdictions.
PowerShares® is a registered trademark of Invesco PowerShares Capital Management LLC, investment adviser. Invesco PowerShares Capital Management LLC (Invesco PowerShares) and Invesco Distributors, Inc., ETF distributor, are indirect, wholly owned subsidiaries of Invesco Ltd.
Shares of the PowerShares Funds are not individually redeemable and owners of the Shares may acquire those Shares from the Funds and tender those shares for redemption to the Funds only in Creation Unit aggregations of 50,000 shares.
Shares are not FDIC insured, may lose value and have no bank guarantee.
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 Funds call 800 983 0903 or visit invescopowershares.com for prospectus/summary prospectus.
PowerShares has arranged with Dorsey, Wright & Associates, LLC (DWA), a Nasdaq Company, to license the DWA Multi-Factor Global Equity Index. Information provided on the Index should not be considered an offer to purchase or sell, or a solicitation of an offer to buy or purchase any security, including PowerShares ETF shares. Potential for profits is accompanied by possibility of loss. Neither PowerShares nor DWA through this document, provide investment advice or recommendations regarding any security, fund or market. There is no relationship between Dorsey, Wright & Associates, LLC ("Dorsey Wright") and Invesco PowerShares ("PowerShares") other than a license by Dorsey Wright to PowerShares of certain Dorsey Wright trademarks, tradenames, investment models, and indexes (the "DWA IP").
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SOURCE Invesco PowerShares Capital Management, LLC