Invesco PowerShares to expand low volatility suite with US mid-cap and small-cap listings
Invesco PowerShares Capital Management has expanded its low volatility suite of exchange-traded funds with the launch of strategies covering the US mid-cap and small-cap segments.
The new ETFs expand the PowerShares Low Volatility suite to five portfolios.
The two new low volatility strategies are PowerShares S&P MidCap Low Volatility Portfolio (XMLV) and PowerShares S&P SmallCap Low Volatility Portfolio (XSLV).
“Investors continue to embrace low-volatility ETF strategies as a simple and effective way to maintain equity exposure while mitigating overall portfolio risk,” says Ben Fulton, Invesco PowerShares managing director of global ETFs. “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 PowerShares S&P Emerging Markets Low Volatility Portfolio (EELV) and PowerShares S&P International Developed Low Volatility Portfolio (IDLV) recently passed their one year anniversary. Since inception on 13 January 2012, both EELV and IDLV 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),” Fulton says. “Combined with the award-winning1 PowerShares S&P Low Volatility Portfolio (SPLV), investors can efficiently achieve global access to a low volatility investment approach which has shown the potential to improve risk-adjusted returns.”
Invesco PowerShares’ existing family of low volatility ETFs based upon the S&P Dow Jones Indices have gathered more than USD3bn in AUM in less than two years.
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