DOWNERS GROVE, Ill., April 9, 2015 /PRNewswire/ -- Invesco PowerShares Capital Management, LLC, a leading global provider of exchange-traded funds (ETFs), announced the launch of the PowerShares S&P 500 ex-Rate Sensitive Low Volatility Portfolio (XRLV), which was listed today on the NYSE ARCA. Based on the industry leading S&P 500 Low Volatility Rate Response Index, XRLV offers a two-factor solution to investors looking for low volatility equity exposure while seeking protection against rising interest rates.
"Investors have faced a prolonged period of historically low interest rates and ever present risk in the wake of the 2008 financial crisis. Inevitably, investors will encounter a reversal of this trend and will likely be forced to manage the risks associated with rising interest rates and higher levels of equity volatility," said Dan Draper, Head of Invesco PowerShares. "The combination of rising volatility and interest rates can have an adverse impact on equity prices, highlighting the need for tailored risk management solutions. XRLV is designed to minimize the impact of rising volatility and higher interest rates on our clients' portfolios. We see this as a strategic addition to our existing suite of PowerShares low volatility solutions."
The S&P 500 Low Volatility Rate Response Index is designed to provide exposure to companies in the S&P 500 that exhibit both low volatility after removing stocks that historically have performed poorly in rising rate environments. To determine its makeup, S&P, which is the index provider, narrows its universe to the 400 stocks with the greatest positive exposure to the 10-year treasury yield (i.e. stocks with the highest positive returns when interest rates rise). Of the remaining 400, the 100 with the lowest volatility over the past 12 months are selected for index inclusion. The companies with the lowest volatility receive the greatest weightings. The Index is rebalanced quarterly.
To learn more about the Invesco PowerShares S&P 500 ex-Rate Sensitive Low Volatility Portfolio (XRLV), please visit https://www.invesco.com/portal/site/us/financial-professional/etfs/product-detail?productId=XRLV.
About Invesco PowerShares Capital Management LLC and Invesco, Ltd.
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 $100 billion as of December 31, 2014 PowerShares ETFs trade on both US 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 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.
Important Risk Information
There are risks involved with investing in ETFs, including possible loss of money. Shares are not actively managed and are subject to risks similar to those of stocks, 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.
Investments focused in a particular industry are subject to greater risk, and are more greatly impacted by market volatility, than more diversified investments.
Equity risk is the risk that the value of equity securities, including common stocks, may fall due to both changes in general economic and political conditions that impact the market as a whole, as well as factors that directly relate to a specific company or its industry.
The Fund is considered non-diversified and may be subject to greater risks than a diversified fund.
There is no assurance that the Fund will provide low volatility.
S&P® is a registered trademark of Standard & Poor's Financial Services LLC (S&P) and Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (Dow Jones). These trademarks have been licensed for use by S&P Dow Jones Indices LLC. S&P® and Standard & Poor's® are trademarks of S&P and Dow Jones® is a trademark of Dow Jones. These trademarks have been sublicensed for certain purposes by Invesco PowerShares Capital Management LLC (Invesco PowerShares). The Index is a product of S&P Dow Jones Indices LLC and/or its affiliates and has been licensed for use by Invesco PowerShares. The Fund is not sponsored, endorsed, sold or promoted by S&P Dow Jones Indices LLC, Dow Jones, S&P or their respective affiliates and neither S&P Dow Jones Indices LLC, Dow Jones, S&P or their respective affiliates make any representation regarding the advisability of investing in such product(s).
Shares are not individually redeemable and owners of the shares may acquire those shares from the Fund and tender those shares for redemption to the Fund in Creation Unit aggregations only, typically consisting of 50,000, 75,000 and 100,000 shares.
Invesco Distributors, Inc. is the distributor of the PowerShares Exchange-Traded Fund Trust. PowerShares® is a registered trademark of Invesco PowerShares Capital Management LLC. Invesco PowerShares Capital Management LLC (Invesco PowerShares) and Invesco Distributors, Inc. are indirect, wholly owned subsidiaries of Invesco Ltd.
Note: Not all products available through all firms.
Before investing, investors should carefully read the prospectus/summary prospectus and carefully consider the investment objectives, risks, charges and expenses. For this and more complete information about the Fund call 800 983 0903 or visit invescopowershares.com for the prospectus/summary prospectus.
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SOURCE Invesco PowerShares Capital Management LLC
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