Want to invest in stocks but with less volatility? Invesco PowerShares Capital Management expanded to its low volatility suite of ETFs with two funds focused on US mid-cap and small-cap stocks. The new ETFs are:
• PowerShares S&P MidCap Low Volatility Portfolio (XMLV)
• PowerShares S&P SmallCap Low Volatility Portfolio (XSLV)
The PowerShares S&P MidCap Low Volatility Portfolio (XMLV) is based on the S&P MidCap 400 Low Volatility Index. The benchmark tracks 80 of the least volatile stocks from the S&P MidCap 400 Index (MDY) over the past 12 months. S&P weights the securities within the underlying index based upon the inverse of each security's volatility, with the least volatile securities receiving the highest weights in the Underlying Index. S&P rebalances quarterly.
The PowerShares S&P SmallCap Low Volatility Portfolio (XSLV) is based on the S&P SmallCap 600 Low Volatility Index. This yardstick tracks 120 of the least volatile stocks from the S&P SmallCap 600 Index (IJR) over the past 12 months. S&P weights the securities within the index based upon the inverse of each security's volatility, with the least volatile securities receiving the highest weights. S&P rebalances the index quarterly.
Both XMLV and XSLV will join the large cap PowerShares S&P 500 Low Volatility Portfolio (SPLV), which uses the same screening strategy but on stocks within the S&P 500 index (VOO).
Including today's launch, PowerShares now manages a total of five low volatility ETFs.
XMLV and XSLV both charge annual expenses of 0.25%.
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