Invesco PowerShares – Best Smart Beta ETF Provider
Invesco PowerShares Capital Management LLC is leading the Intelligent ETF Revolution® through its family of more than 170 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.
Last November, it expanded its smart beta range with the introduction of PowerShares DB Optimum Yield Diversified Commodity Strategy Portfolio (PDBC) on The Nasdaq Stock Market
“PDBC provides investors the opportunity to receive a 1099-DIV (instead of a Schedule K-1) and access commodities the way many institutions would through an intelligent optimum yield roll process. At a net expense ratio of 0.59%, we believe PDBC offers investors a compelling value proposition that could be a “go-to” diversification solution for investors’ broad commodity allocations in the future,” explains Dan Draper (pictured), Head of Invesco PowerShares.
In total, Invesco PowerShares has 82 smart beta ETFs, the largest range of any ETF provider, and is now the 4th largest ETF provider in the US and globally. Sixty of its smart beta ETFs have track records greater than five years.
Last year, Invesco PowerShares introduced Invesco Strategic Smart Beta Portfolios developed by the Invesco Solutions team with Invesco Advisers, Inc. “These were developed to help financial advisors with ideas for building portfolios with allocations where they can see benefits of how various smart beta strategies can work together in a portfolio,” explains Draper.
Of particular import was strong growth in one of Invesco PowerShares’ core smart beta offerings: Fundamental Indexing. As Draper confirms, the firm has invested nearly a decade educating financial advisors on the benefits of alternatively weighted methodologies. “We were pleased to see what we believe is the beginning of a breakthrough to much wider adoption of these groundbreaking strategies,” adds Draper.
One other key development in 2014 was the partnership it established with Russell. This led to the launch of its first product late last year to give investor exposure to the Russell 1000 Equal Weight index. The fund (ticker: EQAL) comes with a gross expense ratio of just 0.20 per cent.
As for which products attracted the most inflows in 2014, the top three were as follows:
• PowerShares FTSE RAFI US 1000 Portfolio (ticker: PRF): USD1.2bn
• PowerShares S&P 500 Low Volatility Portfolio (ticker: SPLV): USD800m
• PowerShares S&P 500 Downside Hedged Portfolio (ticker: PHDG): USD535m.
Invesco PowerShares certainly practices what it preaches as it consolidates its position at the vanguard of smart beta investing. Whilst providing investors access to the widest array of smart beta ETF strategies that span asset classes with some of the longest standing performance track records, Invesco PowerShares is also leading the way in educating financial advisors as they seek to implement smart beta in their investment portfolios.
“In addition to our own educational content, Invesco PowerShares is able to leverage on research and provide access to some of the world’s leading index providers including: S&P, NASDAQ, Research Affiliates, & FTSE/Russell,” explains Draper