Last updated: 11:52 / Tuesday, 10 November 2015
New Multi-Factor ETFs

Invesco PowerShares Adds Two Low Beta Equal Weight Strategies to Smart Beta Lineup

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Invesco PowerShares Adds Two Low Beta Equal Weight Strategies to Smart Beta Lineup
  • Two new ETFs will be launched: The PowerShares Russell 1000® Low Beta Equal Weight Portfolio (USLB) and PowerShares FTSE International Low Beta Equal Weight Portfolio (IDLB)
  • The new multi-factor ETFs are designed to offer risk-adjusted exposure to US and international equity
  • The launch of USLB and IDLB boosts PowerShares lineup to more than 140 ETFs

Invesco PowerShares Capital Management, LLC, a leading global provider of exchange-traded funds (ETFs), announced the launch of two new ETFs; the PowerShares Russell 1000® Low Beta Equal Weight Portfolio (USLB) and PowerShares FTSE International Low Beta Equal Weight Portfolio (IDLB).

Both USLB and IDLB offer multi-factor concepts, which combine individual factors that may offer excess or differentiated returns. Multi-factor investing centered around low beta may potentially enhance returns while reducing risk and ultimately provide for better risk-adjusted returns.

The new USLB strategy is based on the Russell 1000® Low Beta Equal Weight Index, offering risk-adjusted exposure to domestic equity. USLB's factor selection focuses on risk management, which centers on low beta, earnings and equal weighting.

The new IDLB strategy also offers risk-adjusted exposure, but is focused on international equity based on the FTSE Developed ex US Low Beta Equal Weight Index.

"We're excited to be rolling out two new low beta strategies," said Dan Draper, managing director, global head, Invesco PowerShares. "Both ETFs have potential to reduce risk for investors by following disciplined index methodologies while offering exposure to risk-management factors."

"We are happy to be able to offer innovative new methodologies on our flagship US domestic and global indexes for investors who seek exposure through exchange-traded funds," said Ron Bundy, CEO of North America benchmarks for FTSE Russell. "In addition, we are excited to expand on our growing relationship with Invesco PowerShares to provide indexes to underlie their family of exchange-traded funds."

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