Invesco PowerShares’ Fundamental suite of exchange-traded funds recently passed the USD5bn assets under management (AUM) mark.
Invesco PowerShares offers ETFs tracking Fundamentals Weighted indices trading in the US, Canada and Europe.
“Invesco PowerShares has been focused on providing investors with the broadest and most diverse family of ‘smart beta’ ETFs since the firm was founded,” says Andrew Schlossberg, head of global ETFs. “Invesco PowerShares pioneered Fundamentals Weighted ETFs introducing the first broad-based US 1000 portfolio back in 2005, followed by international portfolios in 2007, and the first fixed-income portfolio in 2010. We are pleased to reach this USD5bn milestone for the PowerShares Fundamentals Weighted ETFs. Investors are readily adopting Fundamental strategies along with low volatility, high beta, and momentum-based ETFs as potential effective smart beta portfolio solutions.”
Invesco PowerShares RAFI Fundamentals Weighted Portfolios are based on the Research Affiliates Fundamental Index methodology. This index methodology uses four fundamental measures of company size: book value, cash flow, sales and dividends, to select and weight index constituents. By using four fundamental factors rather than one, the RAFI Fundamental Index methodology is thought to be a more robust means of capturing a company’s true economic footprint.
“The PowerShares Fundamental ETFs seek to provide investors with improved risk-adjusted returns compared to cap-weighted benchmarks,” says John Feyerer, head of product strategy and research at Invesco PowerShares. “Our two flagship ETFs in this suite, the PowerShares FTSE RAFI US 1000 Portfolio (PRF) along with the PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ), its US 1500 complement, have established five-year and since inception track records that demonstrated their effectiveness over varying market cycles. We believe the PowerShares Fundamental ETFs provide investors an important alternative to passive cap-weighted strategies, and also represent great value compared to actively managed portfolios when relative performance and fees are considered.”
“We are proud to partner with Invesco PowerShares on this suite of ETFs,” says Michael Larsen, global head of affiliate relations at Research Affiliates. “In an era of lower expected returns, it is important to provide investors better tools for their toolkit.”