Invesco PowerShares has listed the PowerShares FTSE UK High Dividend Low Volatility UCITS ETF and the PowerShares FTSE Emerging Markets High Dividend Low Volatility UCITS ETF on the London Stock Exchange on 31 May 2016.
Bryon Lake, Head of Invesco PowerShares – EMEA, says: “These new ETFs complement our existing High Dividend Low Volatility range and, collectively, provide a suite of products seeking to help in the search for yield in the UK and emerging markets, while operating in an uncertain equity environment.
“Dividend strategies and low volatility strategies are two of the most popular factors, according to Invesco’s European Investor Research1. By combining the high dividend and low volatility screens, we are seeking to present the best of both factors for UK and emerging markets equity exposure.”
The PowerShares FTSE UK High Dividend Low Volatility UCITS ETF aims to provide investors with returns which, before expenses, correspond to the price and yield performance of the FTSE UK High Dividend Low Volatility Net Total Return Index2 (a dual-factor index) in GBP terms by holding, as far as practicable, all of the Index’s constituents in their respective weighting.
The PowerShares FTSE Emerging Markets High Dividend Low Volatility UCITS ETF is designed to deliver investment returns which, before expenses, correspond to the price and yield performance of the FTSE Emerging High Dividend Low Volatility Net Total Return Index3 (a dual-factor index) in US dollar terms by holding, as far as practicable, all of the Index’s constituents in their respective weighting.
The launch of these products is part of Invesco PowerShares’ ongoing strategy to offer access to new smart beta solutions that seek to deliver targeted investment outcomes. The launch follows the listings of the PowerShares EURO STOXX High Dividend Low Volatility UCITS ETF in January 2016 and the PowerShares S&P 500 High Dividend Low Volatility UCITS ETF in May 2015.
Lake says: “Investors have expressed strong interest in our High Dividend Low Volatility product range, which included the successful listing of the PowerShares S&P 500 High Dividend Low Volatility UCITS ETF and the PowerShares EURO STOXX High Dividend Low Volatility UCITS ETF. This therefore led to our decision to expand our High Dividend Low Volatility family with the launch of these two new products.”
Ron Bundy, CEO of Benchmarks of FTSE Russell, says: “The FTSE UK and FTSE Emerging Markets High Dividend Low Volatility Indexes are benchmarks designed to achieve a balance between dividend yield and volatility. Measuring the performance of the least-volatile high dividend-yielding stocks in the FTSE UK and FTSE Emerging Markets Indexes. They provide market participants with an innovative way to meet diversification, volatility and tradability requirements, thus further enhancing their smart-beta strategies.”
Invesco PowerShares was the first-to-market with Smart Beta ETFs. Since 2003 in the US and 2007 in Europe, Invesco PowerShares has been offering a selection of ETFs that track “next generation” indices, indices that go beyond merely tracking a particular market.
