Invesco PowerShares Capital Management added two "high beta" ETFs, focusing on emerging markets and developed international stocks.
For emerging markets, the PowerShares S&P Emerging Markets High Beta Portfolio (EEHB) follows a benchmark consisting of the 200 stocks in the S&P Emerging BMI Plus LargeMid Cap Index that are the most sensitive to changes in market returns (or beta) over the past 12 months. Constituents are weighted by their corresponding beta, with the most sensitive stocks receiving the highest weights.
"Investors are seeking a more tactical approach to investing and we believe the PowerShares Global Factor-Driven ETFs can provide an efficient means to capitalize on bull markets by adding beta to their portfolio, while having the flexibility to reduce risk in flat or bear markets by adding low volatility strategies to their portfolio," said Ben Fulton, Invesco PowerShares managing director of global ETFs.
