DOWNERS GROVE, Ill., Oct. 9, 2015 /PRNewswire/ -- Invesco PowerShares Capital Management, LLC, a leading global provider of exchange-traded funds (ETFs), announced the launch of four new S&P 500® Factor ETFs, which were listed today on the NYSE Arca:
- PowerShares S&P 500 Momentum Portfolio (SPMO)
- PowerShares S&P 500 Value Portfolio (SPVU)
- PowerShares Developed EuroPacific Currency Hedged Low Volatility Portfolio (FXEP)
- PowerShares Japan Currency Hedged Low Volatility Portfolio (FXJP)
PowerShares' new portfolios apply a factor-based approach designed to generally correspond to the price and yield of the S&P 500 Momentum Index, the S&P 500 Enhanced Value Index, the S&P EPAC ex. Korea Low Volatility USD Hedged Index, and the S&P Japan 500® Low Volatility USD Hedged Index, respectively.
"Factor strategies can serve an important role in a diversified portfolio," said Dan Draper, Managing Director and Head of Invesco PowerShares. "By extending our line-up of low volatility ETFs and adding new momentum and value portfolios, we are offering investors more innovative ways to incorporate factor strategies into their financial plans."
"Factor based indices continue to increase in popularity for investors who seek alternatives to traditional market-cap weighted indices," says Vinit Srivastava, Senior Director of Strategy Indices at S&P Dow Jones Indices. "We are proud to be the index provider for PowerShares' comprehensive suite of factor ETFs based on the S&P 500."
Momentum and Value
SPMO is designed to track the performance of stocks in the S&P 500 Index that have a high "momentum score," based on upward price movements of the security as compared to other eligible securities within the S&P 500 Index. SPVU is designed to track the performance of stocks in the S&P 500 Index that have a high "value score," calculated based on book value-to-price ratio, earnings-to-price ratio, and sales-to-price ratio.
FXEP is designed to provide access to the 200 least volatile stocks in the S&P EPAC Ex. Korea LargeMidCap Index based on their volatility over the past year. Constituents are weighted relative to the inverse of their volatility with the least volatile stocks receiving the highest weightings. The portfolio is then 100% currency hedged to the US dollar using rolling one month forward contracts.
Investing in Japan can result in the dual risk of uncertain stock selection and foreign exchange fluctuations. FXJP can be added to a portfolio with Japanese equity exposure to potentially help mitigate unexpected equity market developments through exposure to a low volatility strategy that seeks to dampen currency risk via the currency hedge feature.
These new ETFs are the next installment of the firm's established lineup of five smart beta funds derived from components of the S&P 500 Index, including: PowerShares S&P 500 Low Volatility ETF (SPLV), PowerShares S&P 500 High Quality ETF (SPHQ), PowerShares S&P 500 High Dividend ETF (SPHD), PowerShares S&P 500 High Beta ETF (SPHB), and PowerShares S&P 500 ex-Rate Sensitive Low Volatility ETF (XRLV).
To learn more about the Invesco PowerShares factor-based ETFs, please visit our Resources page and consider our latest paper 'Getting Smart about Beta' here: https://www.invesco.com/portal/site/us/financial-professional/active-passive-investing/
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 franchise assets of nearly $100 billion as of October 7, 2015. 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.
Important Risk Information
There are risks involved with investing in ETFs, including possible loss of money. Shares are not actively managed and are subject to risks similar to those of stocks, 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.
Investments focused in a particular industry are subject to greater risk, and are more greatly impacted by market volatility, than more diversified investments.
Equity risk is the risk that the value of equity securities, including common stocks, may fall due to both changes in general economic and political conditions that impact the market as a whole, as well as factors that directly relate to a specific company or its industry.
The Fund is considered non-diversified and may be subject to greater risks than a diversified fund.
There is no assurance that the Fund will provide low volatility.
The risks of investing in securities of foreign issuers can include fluctuations in foreign currencies, political and economic instability, and foreign taxation issues.
Stocks of small and mid-capitalization companies tend to be more vulnerable to adverse developments, may be more volatile, and may be illiquid or restricted as to resale than large companies.
Currency hedging can reduce or eliminate losses or gains and can also be subject to imperfect matching between the derivative and its reference asset. There is no assurance the Fund's hedging strategy will be effective. Some foreign currency forward contracts are less liquid, which may result in the Fund being unable to structure its hedging transactions as intended and may be unable to obtain sufficient liquidity in an underlying currency.
As a result, the Fund's hedging transactions may not successfully reduce the currency risk included in the Fund's portfolio.
The performance of an investment concentrated in issuers of a certain region or country is expected to be closely tied to conditions within that region and to be more volatile than more geographically diversified investments.
The Fund is non-diversified and may experience greater volatility than a more diversified investment. The Fund is subject to certain other risks. Please see the current prospectus for more information regarding the risk associated with an investment in the Fund.
S&P® is a registered trademark of Standard & Poor's Financial Services LLC (S&P) and Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (Dow Jones). These trademarks have been licensed for use by S&P Dow Jones Indices LLC. S&P® and Standard & Poor's® are trademarks of S&P and Dow Jones® is a trademark of Dow Jones. These trademarks have been sublicensed for certain purposes by Invesco PowerShares Capital Management LLC (Invesco PowerShares). The Index is a product of S&P Dow Jones Indices LLC and/or its affiliates and has been licensed for use by Invesco PowerShares. The Fund is not sponsored, endorsed, sold or promoted by S&P Dow Jones Indices LLC, Dow Jones, S&P or their respective affiliates and neither S&P Dow Jones Indices LLC, Dow Jones, S&P or their respective affiliates make any representation regarding the advisability of investing in such product(s).
Shares are not individually redeemable and owners of the shares may acquire those shares from the Fund and tender those shares for redemption to the Fund in Creation Unit aggregations only, typically consisting of 50,000, 75,000 and 100,000 shares.
Invesco Distributors, Inc. is the distributor of the PowerShares Exchange-Traded Fund Trust. PowerShares® is a registered trademark of Invesco PowerShares Capital Management LLC. Invesco PowerShares Capital Management LLC (Invesco PowerShares) and Invesco Distributors, Inc. are indirect, wholly owned subsidiaries of Invesco Ltd.
Note: Not all products available through all firms.
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 Fund call 800 983 0903 or visit invescopowershares.com for the prospectus/summary prospectus.
SOURCE Invesco PowerShares Capital Management LLC