DOWNERS GROVE, Ill., Oct. 9, 2015 /PRNewswire/ -- Invesco PowerShares Capital Management, LLC, a leading global provider of exchange-traded funds (ETFs), announced today the launch of the PowerShares DWA Tactical Sector Rotation Portfolio (DWTR). Dorsey, Wright & Associates (DWA) is a leading registered investment advisory firm based in Richmond, Virginia.
DWTR implements an unemotional approach, focusing on relative strength, a momentum indicator that compares the magnitude of recent gains to recent losses in an attempt to determine overbought and oversold conditions of an asset, as a longer term strategy that may help reduce potential turnover, but is also adaptive enough to rotate a portfolio on a monthly basis as the market dictates. PowerShares' solution benefits from a sector rotation strategy that provides factor exposure to momentum and also features a cash component (represented by 0-6 month T-Bills) for risk management during market downturns.
"The power of this strategy results from its ability to take the DWA Sector 4 Index and package it in the efficient ETF wrapper, which potentially reduces tax burden, transaction costs, and eases portfolio implementation," said Nick Kalivas, senior equity product strategist at Invesco PowerShares. "Another potential benefit to this momentum strategy is that it may be used in tactical and strategic allocations when combined with other smart beta products or asset classes."
"Invesco PowerShares has been a valued partner to Dorsey Wright for close to a decade," said Tammy DeRosier, President at Dorsey, Wright & Associates. "We are excited to continue our work together, launching this unique sector rotation strategy product that seeks to dynamically adjust monthly to sector trends, as well as prevailing market conditions."
DWA's methodology uses technical analysis to identify market trends which can potentially be used to capitalize on performance differences between sectors. Allocations are then adjusted based on DWA's proprietary relative strength methodology.
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.
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 is subject to certain other risks.
Please see the prospectus for more information regarding the risks associated with an investment in the fund. 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 shares.
Beta is a measure of risk representing how a security is expected to respond to general market movements. Smart beta represents an alternative and selection index based methodology that may outperform a benchmark or reduce portfolio risk or both. Smart beta funds may underperform cap-weighted benchmarks and increase portfolio risk.
The momentum style of investing is subject to the risk that the securities may be more volatile than the market as a whole, or that the returns on securities that have previously exhibited price momentum are less than returns on other styles of investing.
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.
Through its investments in the PowerShares ETFs, which each track a specific sector of the U.S. equity market, the Fund also will face specific risks inherent in each of these sectors: basic materials sector, consumer discretionary sector, consumer staples sector, energy sector, financial services sector, healthcare sector, industrials sector, technology sector and utilities sector risk.
The Fund invests primarily in other funds, the Fund's investment performance largely depends on the investment performance of those Underlying Funds. An investment in the Fund is subject to the risks associated with the PowerShares ETFs that comprise the Underlying Index.
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.
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.
About Dorsey, Wright & Associates, LLC (DWA)
PowerShares has arranged with Dorsey, Wright & Associates, LLC (DWA) to provide specialized ETF analysis on the PowerShares ETFs. The Point & Figure analysis, models and resulting rankings, including any information, data or commentary included therein, 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. The examples presented do not take into consideration commissions, tax implications, or other transactions costs. 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").
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.
Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. However, such information has not been verified by DWA or the information provider and DWA and the information providers make no representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein. DWA and the information provider accept no liability to the recipient whatsoever whether in contract, in tort, for negligence, or otherwise for any direct, indirect, consequential, or special loss of any kind arising out of the use of this document or its contents or of the recipient relying on any such recommendation or information (except in so far as any statutory liability cannot be excluded).
The use of DWA's product and data descriptions, trademarks, logos and other identifying marks shall not constitute or be construed as the creation or existence of any partnership, agency or joint venture relationship between PowerShares and DWA. There are risks inherent in international investments, which may make such investments unsuitable for certain clients. These include, for example, economic, political, currency exchange, rate fluctuations, and limited availability of information on international securities. DWA, and their affiliates make no representation that the companies which issue securities which are the subject of their research reports are subject to, or in compliance with certain informational
reporting requirements imposed by the Securities Exchange Act of 1934. Sales of securities covered in this report may be made in only those jurisdictions where such securities are qualified for sale.
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.
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