Invesco PowerShares, a leading global provider of exchange-traded funds (ETFs), is to expand its suite of low-volatility ETFs with the launch of new strategies covering the US mid-cap and small-cap segments.
Invesco PowerShares’ low-volatility ETFs can help investors navigate through choppy markets.
The new ETFs, the PowerShares S&P MidCap Low Volatility Portfolio ETF (XMLV) and PowerShares S&P SmallCap Low Volatility Portfolio ETF (XSLV), are to be listed on the NYSE Arca and take the suite to five funds.
The existing funds offer low-volatility exposure to US large-caps, emerging markets and international developed equities. The suite’s flagship product, the PowerShares S&P 500 Low Volatility Portfolio ETF (SPLV), has proved hugely popular, accumulating assets of almost $3.4 billion.
Ben Fulton, Invesco PowerShares managing director of global ETFs, said: “Investors continue to embrace low-volatility ETF strategies as a simple and effective way to maintain equity exposure while mitigating overall portfolio risk. The two new PowerShares ETFs will provide investors with convenient access to low volatility strategies covering the US mid-cap and small-cap segments.”
The launch of the mid-cap and small-cap products comes just over a year after the PowerShares S&P Emerging Markets Low Volatility Portfolio ETF (EELV) and PowerShares S&P International Developed Low Volatility Portfolio ETF (IDLV) made their debuts. Since inception on January 13, 2012, both these funds have achieved better risk-adjusted returns compared to their respective MSCI benchmarks.
“We are very pleased with the one-year performance for the PowerShares Low Volatility ETFs covering emerging markets (EELV) and international developed markets (IDLV). Combined with the award-winning PowerShares S&P Low Volatility Portfolio, investors can efficiently achieve global access to a low volatility investment approach which has shown the potential to improve risk-adjusted returns,” added Fulton.
The full suite is as follows:
PowerShares S&P MidCap Low Volatility Portfolio ETF (XMLV) NEW
PowerShares S&P SmallCap Low Volatility Portfolio ETF (XSLV) NEW
PowerShares S&P Emerging Markets Low Volatility Portfolio ETF (EELV)
PowerShares S&P International Developed Low Volatility Portfolio ETF (IDLV)
PowerShares S&P 500 Low Volatility Portfolio ETF (SPLV)