Daily ETF Watch: More S&P 500 Smart Beta
PowerShares plans three more smart-beta funds derived from the S&P 500.
Invesco PowerShares is looking to add to its lineup of funds that apply factor-based approaches to the stocks that are included in the S&P 500 Index with its latest SEC filing. The three funds will target the momentum, quality and value factors.
The three proposed additions each respectively target one of three factors by scoring each stock in the S&P 500 for that factor. The top 100 stocks based on those scores are then selected for the index and weighted by their market capitalizations multiplied by their factor score.
The three funds include the following:
- PowerShares S&P 500 Quality Factor ETF
- PowerShares S&P 500 Momentum Factor ETF
- PowerShares S&P 500 Value Factor ETF
The firm already has five smart-beta funds derived from the components of the S&P 500:
- PowerShares S&P 500 Low Volatility ETF (SPLV | A-59), with $5 billion in assets under management
- PowerShares S&P 500 High Quality ETF (SPHQ | A-86), with $542 million
- PowerShares S&P 500 High Dividend ETF (SPHD | A-52), with $626 million
- PowerShares S&P 500 High Beta ETF (SPHB | A-61), with $368 million
- PowerShares S&P 500 ex-Rate Sensitive Low Volatility ETF (XRLV), with $2.5 million
The filing detailing the new funds didn’t include tickers or expense ratios, but it did indicate the funds will list on the NYSE Arca.
