Invesco PowerShares Capital Management has selected the Russell 1000 Equal Weight Index as the basis for a new exchange traded fund (ETF).
The Russell 1000 Equal Weight Index offers a unique and practical alternative to conventional weighted indexes. Rather than assigning an equal weight to each index constituent, Russell’s sector equal weight methodology equally weights each sector within the index and then equally weights the companies within each sector. This innovative approach can provide greater potential diversification benefits than traditional equal weight indexes.
Invesco PowerShares is a leading global provider of exchange-traded funds and a pioneer in the development of smart beta ETFs. The firm believes that smart beta strategies can provide investors with a valuable alternative that expands portfolio construction opportunities and offers a full suite of smart beta ETFs in various categories.
“We are excited that Invesco PowerShares has selected our Russell 1000 Equal Weight Index as the basis for a new smart beta ETF,” says Ron Bundy, CEO of Russell Indexes. “The Russell Indexes suite of smart beta indexes are designed to provide investors with new ways of segmenting and gaining exposure to the global equity market beyond traditional market capitalisation weighted indexes. We are glad to build on our relationship with PowerShares and pleased that investors now have more ways of accessing these indexes.”