Invesco PowerShares has further bolstered its aggressive push into the ETFs market with five factor-focused equity funds.
The new ETFs, which all focus on European equity, come hot on the heels of the group announcing a trio of fixed income approaches last week.
In this new range, the company will seek to tap into multi-factor investors, with value, quality, low beta, and both price and earnings momentum being used.
These new ETFs track the Solactive Tradable European Factor indices, which are derived from a universe of 675 stocks.
Invesco PowerShares said each index is created by selecting the 50 stocks with the greatest exposure to the respective factor.
The new products are formally known as:
- PowerShares Tradable European Value Factor Ucits ETF (PFTV GY)
- PowerShares Tradable European Quality Factor Ucits ETF (PFTQ GY)
- PowerShares Tradable European Low Beta Factor Ucits ETF (PFTB GY)
- PowerShares Tradable European Price Momentum Factor Ucits ETF (PFTP GY)
- PowerShares Tradable European Earnings Momentum Factor Ucits ETF (PFTE GY)
Announcing the launches, Invesco PowerShares said that while multi-factor investing is not a new concept, investor demand for ways to enhance performance ithis method is growing.
‘We expect these new ETFs to attract a variety of investors who want to pursue factors from either a tactical or a strategic perspective.
'For example, hedge funds are likely to use them in the same way as our sector ETFs, providing them with an easy way to capture or adjust exposure to a specific part of the market for hedging purposes.’
The new factor ETFs are available in EUR on Xetra, with an ongoing charge of 0.30% per annum.