Invesco PowerShares has announced the listing of a US value exchange traded fund (ETF).
The PowerShares S&P 500 QVM UCITS ETF will seek to replicate the S&P 500 quality, value & momentum multi-factor index. The management fee on the fund will be 35 basis points a year.
The ETF is intended to track value in the US stock market.
PowerShares claimed it is the first ETF of its kind, combining quality and value with targeted risk-adjusted returns.
‘As the largest single economy in the world, the US may represent a significant portion of investors’ portfolios,’ said Nicolas Samaran, head of product development at PowerShares (EMEA).
‘However, in the last few years, research shows that it has been challenging to find sustainable outperformance and this is why a number of investors have been looking at finding a more refined range of solutions.’
Vinit Srivastava, head of strategy indices at S&P Dow Jones Indices, added: ‘Multi-factor indices are designed to provide stable excess returns without requiring a view on a specific factor.
'Furthermore, selecting stocks based on our multi-factor score approach aims to improve the factor exposure compared with combining single-factors at the index level.
‘By using a combination of factors that have a low correlation between each other, the S&P 500 Quality, Value & Momentum Multi-factor Index seeks to provide diversification benefit within an index strategy.’