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Invesco PowerShares lowers fees on US fundamentals-weighted ETFs

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Exchange-traded fund provider Invesco PowerShares Capital Management has announced that expense ratios for its eleven US PowerShares FTSE Rafi fundamentals-based ETF portfolios will be low

Exchange-traded fund provider Invesco PowerShares Capital Management has announced that expense ratios for its eleven US PowerShares FTSE Rafi fundamentals-based ETF portfolios will be lowered to 39 basis points as of November 1.

The change affects the PowerShares FTSE Rafi US 1000 Portfolio, PowerShares FTSE Rafi US 1500 Small-Mid Portfolio, PowerShares FTSE Rafi Basic Materials Sector Portfolio, PowerShares FTSE Rafi Consumer Goods Sector Portfolio, PowerShares FTSE Rafi Consumer services Sector Portfolio, PowerShares FTSE Rafi Energy Sector Portfolio, PowerShares FTSE Rafi Financials Sector Portfolio, PowerShares FTSE Rafi Health Care Sector Portfolio, PowerShares FTSE Rafi Industrials Sector Portfolio, PowerShares FTSE Rafi Telecom & Technology Sector Portfolio and PowerShares FTSE Rafi Utilities Sector Portfolio

‘Invesco PowerShares pioneered fundamentals-weighted ETFs, introducing the first broad-based US 1000 portfolio in 2005, followed by a US 1500 and sector portfolios in 2006,’ says president and chief executive Bruce Bond.

The PowerShares fundamentals-weighted portfolios are based on FTSE Rafi indices, constructed using four fundamental measures to rank a company’s size, book value, cash flow, sales and dividends. The equities with the highest fundamental strength are weighted according to fundamental scores.

‘The PowerShares fundamentals-weighted ETFs are an important alternative to cap-weighted portfolios, and seek to provide investors with higher returns with lower volatility over time,’ Bond says. ‘We will be lowering fees across the entire domestic FTSE Rafi line-up.’

Invesco PowerShares manages more than 140 US and international index-based and actively managed exchange-traded funds, and had assets under management of some USD12.21bn at the end of September.

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