Bringing you live news and features since 2006 

PowerShares to launch international ETFs based on fundamental indices

RELATED TOPICS​

Invesco subsidiary PowerShares Capital Management has announced plans to launch four new international exchange-traded funds based on the FTSE RAFI fundamental indices covering Europe, Jap

Invesco subsidiary PowerShares Capital Management has announced plans to launch four new international exchange-traded funds based on the FTSE RAFI fundamental indices covering Europe, Japan, the Asia-Pacific region outside Japan, and developed markets excluding the US.

‘We are pleased to partner with Research Affiliates and FTSE to offer intelligent exposure to global markets using the ETF structure and Research Affiliates Fundamental Index strategies,’ says PowerShares Capital Management president Bruce Bond.

‘We believe that these portfolios offer material enhancements to the cap-weighted ETFs currently available in the space. We offer investors opportunities to participate in the four new international portfolios that seek to provide better exposure and the potential for outperformance of traditional cap-weighted indexes.’

The four PowerShares portfolios are based on FTSE RAFI indexes designed to track the performance of the largest equities in each country or region selected based on four equally-weighted fundamental measures of firm size: book value, income, sales and dividends. The 1,000 equities in each country or region with the highest fundamental strength are weighted according to their fundamental scores.

The four ETFS are the PowerShares FTSE RAFI Europe Portfolio, PowerShares FTSE RAFI Japan Portfolio, PowerShares FTSE RAFI Asia Pacific Ex-Japan Portfolio and PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio.

Says Research Affiliates chairman Rob Arnott: ‘Research Affiliates, FTSE and PowerShares Capital Management are partners in innovation introducing investment alternatives to traditional cap-weighted indexes.

‘Fundamental index strategies have produced consistently higher returns with lower risk compared to cap-weighted indexes. Our research has found that fundamental index strategies have outperformed cap-weighted strategies in international markets, on average, by more than 250 basis points.’

Adds FTSE Americas president Jerry Moskowitz: ‘We are pleased that PowerShares has chosen to base these new ETFs on the FTSE RAFI Europe, Japan, Asia Pacific ex-Japan and Developed Markets ex-US indices. These indexes open up the fundamental approach to investors looking for exposure to global markets.’

Latest News

ETF data consultant ETFGI reports that assets invested in the global ETF industry reached a new record of USD12.71 trillion..
Calastone has published an ETF white paper which examines several of the processes that take place across the lifecycle of..
Adapting product lines to fit into changing methodologies and meet shifting demand is essential to remaining relevant in the industry..
Investors urgently need greater access to diversified investment strategies aligned with the Paris Agreement on climate change if the world..

Related Articles

Taylor Krystkowiak, Themes ETFs
Themes ETFs opened its doors in December 2023, with an introductory suite of 11 ETFs – seven thematic and four...
Konrad Sippel, Solactive
At the end of March, financial index specialist, Solactive, published its 2024 annual report on future trends.  ...
Lorraine Sereyjol-Garros, BNP Paribas
Following changes to the French Monetary and Financial Code and of the French market authority AMF’s General Regulation, it is...
Ed Rosenberg, Texas Capital
Texas Capital Bank first opened its doors back in December 1998 and nowadays offers wealth-management services, as well as commercial,...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by