PowerShares expands ETF offering

Toronto-based PowerShares Canada, a subsidiary of Atlanta-base Invesco Ltd., has introduced two new “smart beta” ETFs that employ a low-volatility strategy to provide investors with access to global equities markets. PowerShares S&P International Developed Low Volatility Index ETF seeks to replicate the performance of the S&P BMI international developed low-volatility index. This index is designed to give investors exposure to the 200 stocks from the S&P developed (excluding the U.S. and South Korea) large/mid-cap index with the lowest realized volatility over the past 252 trading days as of the most recent quarterly rebalancing. This ETF’s management fee is 0.40%. PowerShares S&P Emerging Markets Low Volatility Index ETF, the second of the two new products, seeks to replicate the performance of the S&P BMI emerging markets low-volatility index. The underlying index is designed to give investors exposure to the 200 stocks from the S&P emerging plus large/mid-cap index with the lowest realized volatility over the past 252 trading days as of the most recent quarterly rebalancing. This ETF’s management fee is 0.44%. Both ETFs complement PowerShares Canada’s existing suite of low-volatility investment products, which includes PowerShares S&P/TSX Composite Low Volatility Index ETF and PowerShares S&P 500 Low Volatility (CAD Hedged) Index ETF.

cohara@investmentexecutive.com