Invesco PowerShares Capital Management LLC, a leading global
provider of exchange-traded funds (ETFs), announced today plans to
expand its low volatility suite of ETFs with strategies covering
the US mid-cap and small-cap segments. The new ETFs are expected to
begin trading on Feb. 15, 2013 on the NYSE Arca and will expand the
PowerShares Low Volatility suite to five portfolios.
Low Volatility Strategies (anticipated listing on Feb. 15,
2013):
- PowerShares S&P MidCap Low Volatility
Portfolio (XMLV)
- PowerShares S&P SmallCap Low
Volatility Portfolio (XSLV)
"Investors continue to embrace low-volatility ETF strategies as
a simple and effective way to maintain equity exposure while
mitigating overall portfolio risk," said Ben Fulton, Invesco
PowerShares managing director of global ETFs. "The two new
PowerShares ETFs will provide investors with convenient access to
low volatility strategies covering the US mid-cap and small-cap
segments."
The PowerShares S&P Emerging Markets Low Volatility
Portfolio (EELV) and PowerShares S&P International Developed
Low Volatility Portfolio (IDLV) recently passed their one year
anniversary. Since inception on January 13, 2012, both EELV and
IDLV have achieved better risk-adjusted returns compared to their
respective MSCI benchmarks*.
"We are very pleased with the one-year performance for the
PowerShares Low Volatility ETFs covering emerging markets (EELV)
and international developed markets (IDLV)," Fulton said. "Combined
with the award-winning(1) PowerShares S&P Low Volatility
Portfolio (SPLV), investors can efficiently achieve global access
to a low volatility investment approach which has shown the
potential to improve risk-adjusted returns."
Invesco PowerShares' existing family of low volatility ETFs
based upon the S&P Dow Jones Indices have gathered more than $3
billion in AUM in less than two years.
- PowerShares S&P Emerging Markets Low
Volatility Portfolio (EELV)
- PowerShares S&P International Developed
Low Volatility Portfolio (IDLV)
- PowerShares S&P 500® Low Volatility Portfolio
(SPLV)
----------------------------------------------------------------------------
PowerShares Low
Volatility ETF Performance Volatility Return/Risk 30-day SEC
vs. Market Benchmark Since Since (%) Yield*
Index Inception* Inception*
----------------------------------------------------------------------------
EELV 17.08% 10.21% 1.71% 2.28%
----------------------------------------------------------------------------
MSCI Emerging Markets
Index 13.65% 14.37% 1.06% N/A
----------------------------------------------------------------------------
IDLV 15.37% 8.36% 2.21% 4.81%
----------------------------------------------------------------------------
MSCI EAFE Index 17.07% 15.36% 1.51% N/A
----------------------------------------------------------------------------
SPLV 10.30% 13.62% 1.73% 3.00%
----------------------------------------------------------------------------
S&P 500 Index 10.57% 19.52% 0.85% N/A
----------------------------------------------------------------------------
*Source: Bloomberg L.P., as of Jan.31, 2013, Volatility measured
by standard deviation, EELV and IDLV Inception: Jan. 13, 2012, SPLV
Inception: May 5, 2011. Risk-Adjust Return is the realized rate of
return per unit of risk, Return / Risk.
----------------------------------------------------------------------------
Standardized performance as of Dec. 31, 2012
Since Fund Inception EELV IDLV SPLV
----------------------------------------------------------------------------
NAV 17.08% 15.37% 10.30%
----------------------------------------------------------------------------
Market Price 17.89% 15.83% 10.25%
----------------------------------------------------------------------------
Performance data quoted represents past performance. As stated
in the Funds' prospectuses, the expense ratios of 0.29% (EELV and
IDLV) and 0.25% (SPLV) are expressed as a unitary fee to cover
expenses incurred in connection with managing the portfolio. Past
performance is not a guarantee of future results; current
performance may be higher or lower than performance quoted.
Investment returns and principal value will fluctuate and Shares,
when redeemed, may be worth more or less than their original cost.
See invescopowershares.com to find the most recent month-end
performance numbers. Market returns are based on the midpoint of
the bid/ask spread at 4 p.m. ET and do not represent the returns an
investor would receive if shares were traded at other times.
The PowerShares S&P MidCap Low Volatility
Portfolio (XMLV) is based on the S&P MidCap 400 Low
Volatility Index. Standard & Poor's compiles, maintains and
calculates the Underlying Index, which is designed to measure the
performance of 80 of the least volatile stocks from the S&P
MidCap 400 Index over the past 12 months. S&P weights the
securities within the Underlying Index based upon the inverse of
each security's volatility, with the least volatile securities
receiving the highest weights in the Underlying Index. S&P
rebalances the Underlying Index quarterly.
The PowerShares S&P SmallCap Low Volatility
Portfolio (XSLV) is based on the S&P SmallCap 600 Low
Volatility Index. Standard & Poor's compiles, maintains and
calculates the Underlying Index, which is designed to measure the
performance of 120 of the least volatile stocks from the S&P
SmallCap 600 Index over the past 12 months. S&P weights the
securities within the Underlying Index based upon the inverse of
each security's volatility, with the least volatile securities
receiving the highest weights in the Underlying Index. S&P
rebalances the Underlying Index quarterly.
The PowerShares S&P Emerging Markets Low
Volatility Portfolio (EELV) is based on the S&P BMI
Emerging Markets Low Volatility Index. Standard & Poor's
compiles, maintains and calculates the Underlying Index, which is
designed to measure the performance of 200 of the least volatile
stocks of the S&P Emerging BMI plus LargeMid Cap Index. The
S&P Emerging BMI Plus LargeMid Cap Index includes all publicly
listed equity securities with float-adjusted market values of at
least $100 million and annual dollar value traded of at least $50
million from the following countries: Brazil, Chile, China,
Colombia, Czech Republic, Egypt, Hungary, India, Indonesia, South
Korea, Malaysia, Mexico, Morocco, Peru, Philippines, Poland,
Russia, South Africa, Taiwan, Thailand and Turkey.
The PowerShares S&P International Developed
Low Volatility Portfolio (IDLV) is based on the S&P BMI
International Developed Low Volatility Index. Standard & Poor's
compiles, maintains and calculates the Underlying Index, which is
designed to measure the performance of 200 of the least volatile
stocks of the S&P Developed ex US and South Korea LargeMid Cap
BMI Index. The S&P Developed ex US and South Korea LargeMid Cap
BMI Index includes all publicly listed equity securities with float
adjusted market values of at least $100 million and annual dollar
value traded of at least $50 million from the following countries:
Australia, Austria, Belgium, Canada, Denmark, Finland, France,
Germany, Greece, Hong Kong, Ireland, Israel, Italy, Japan,
Luxembourg, the Netherlands, New Zealand, Norway, Portugal,
Singapore, Spain, Sweden, Switzerland, and the United Kingdom.
The PowerShares S&P 500® Low Volatility Portfolio (SPLV)
is based on the S&P 500® Low Volatility Index (Index). The Fund
will invest at least 90% of its total assets in common stocks that
comprise the Index. The Index is compiled, maintained and
calculated by Standard & Poor's and consists of the 100 stocks
from the S&P 500® Index with the lowest realized volatility
over the past 12 months. Volatility is a statistical measurement of
the magnitude of up and down asset price fluctuations over time.
The Fund is rebalanced and reconstituted quarterly in Feb, May,
Aug, and Nov.
Invesco PowerShares Capital Management LLC is Leading the
Intelligent ETF Revolution® through its family of more than 140
domestic and international exchange-traded funds, which seek to
outperform traditional benchmark indexes while providing advisors
and investors access to an innovative array of focused investment
opportunities. With franchise assets over $70 billion as of Dec.
31, 2012, PowerShares ETFs trade on both U.S. stock exchanges. For
more information, please visit us at invescopowershares.com or
follow us on Twitter @PowerShares.
Invesco, Ltd. Is a leading independent global investment
management firm, dedicated to helping investors worldwide achieve
their financial objectives. By delivering the combined power of our
distinctive investment management capabilities, Invesco provides a
wide range of investment strategies and vehicles to our retail,
institutional and high net worth clients around the world.
Operating in more than 20 countries, the firm is listed on the New
York Stock Exchange under the symbol IVZ. Additional information is
available at www.invesco.com.
1 The PowerShares S&P 500® Low Volatility Portfolio (SPLV)
received the William F. Sharpe ETF of the Year Award for having the
most significant impact on the ETF market in 2012.
Volatility is the annualized standard deviation of index
returns. Unforeseen market conditions may prevent the fund from
achieving its goal of providing low volatility.
There are risks involved with investing in ETFs, including
possible loss of money. Shares are not actively managed and are
subject to risks including those regarding short selling and margin
maintenance requirements. Ordinary brokerage commissions apply. The
fund's return may not match the return of the underlying index.
Foreign securities have additional risks, including
exchange-rate changes, decreased market liquidity, political
instability and taxation by foreign governments. Shares are not FDIC insured, may lose value and have no bank
guarantee.
Shares are not individually redeemable and owners of the shares
may acquire those shares from the Funds and tender those shares for
redemption to the Funds in Creation Unit aggregations only,
typically consisting of 50,000 shares.
Invesco Distributors, Inc. is the distributor of the PowerShares
Exchange-Traded Fund Trust II. PowerShares® is a registered
trademark of Invesco PowerShares Capital Management LLC. Invesco
PowerShares Capital Management LLC and Invesco Distributors, Inc.
are indirect, wholly owned subsidiaries of Invesco Ltd.
An investor should consider the Fund's
investment objective, risks, charges and expenses carefully before
investing. For this and more complete information about the Fund,
call 800 983 0903. Please read the prospectus carefully before
investing.
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Media Contacts: Kristin Sadlon Porter Novelli
212-601-8192 Email Contact Bill Conboy 303-415-2290 Email
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