Invesco PowerShares Capital Management is to list two new ETFs that will provide investors with access to high-beta strategies covering emerging and international developed markets. The ETFs – EEHB PowerShares S&P Emerging Markets High Beta Portfolio, and IDHB PowerShares S&P International Developed High Beta Portfolio – are expected to begin trading 24 February, 2012.
On May 5, 2011, Invesco PowerShares launched the first exchange-traded funds covering high beta and low volatility strategies for the US market. Today, with over USD1.3 billion in AUM, the suite of PowerShares Global Factor-Driven ETFs provide advisors and investors with a disciplined approach and full range of tools for increasing beta or lowering volatility in their portfolios.
"PowerShares Global Factor-Driven ETFs represent a new way for investors seeking to manage equity exposure by using specific factor weighted ETFs as building blocks," says Ben Fulton (pictured), Invesco PowerShares managing director of global ETFs. "Investors are seeking a more tactical approach to investing and we believe the PowerShares Global Factor-Driven ETFs can provide an efficient means to capitalize on bull markets by adding beta to their portfolio, while having the flexibility to reduce risk in flat or bear markets by adding low volatility strategies to their portfolio."
The PowerShares S&P Emerging Markets High Beta Portfolio (EEHB) is based on the S&P BMI Emerging Markets High Beta Index ("the Index"). The Fund will invest at least 90% of its total assets in the securities of companies that comprise the Index. The Index is compiled, maintained and calculated by Standard & Poor’s and consists of the 200 stocks in the S&P Emerging BMI Plus LargeMid Cap Index that are the most sensitive to changes in market returns (or beta) over the past 12 months. Constituents are weighted by their corresponding beta, with the most sensitive stocks receiving the highest weights.
The PowerShares S&P International Developed High Beta Portfolio (IDHB) is based on the S&P BMI International Developed High Beta Index ("the Index"). The Fund will invest at least 90% of its total assets in the securities of companies that comprise the Index. The Index is compiled, maintained and calculated by Standard & Poor’s and consists of the 200 stocks in the S&P Developed ex. US and South Korea LargeMid Cap BMI Index that are the most sensitive to changes in market returns (or beta) over the past 12 months. Constituents are weighted by their corresponding beta, with the most sensitive stocks receiving the highest weights. Although the funds seek to add beta, there is no assurance that the funds will meet that goal.
