Invesco's (IVZ) PowerShares unit, the fourth-largest U.S. ETF issuer, said it today it expects to introduce the PowerShares S&P 500 Downside Hedged Portfolio (PHDG) on Thursday, December 6, 2012. The new ETF, which will feature an annual expense ratio of 0.39 percent, "will be a liquid alternative solution providing investors broad US equity market exposure with a downside hedge by dynamically allocating to VIX futures and cash depending on market volatility trends," according to PowerShares.
The PowerShares S&P 500 Downside Hedged Portfolio will be an actively managed product. PowerShares currently offers several actively managed ETFs, including the PowerShares Active Mega Cap Fund (PMA) and the PowerShares Active Low Duration Fund (PLK).
The PowerShares S&P 500 Downside Hedged Portfolio "will use a rules-based approach to dynamically shift its exposure among the S&P 500 Index, VIX futures and cash, depending on market volatility," the firm said in a statement.
PHDG will be the seventh new ETF introduced this year by PowerShares. The most recent new addition to the firm's lineup is the PowerShares S&P 500 High Dividend Portfolio (SPHD). SPHD is less than two months old and already has nearly $26 million in assets under management.
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