PowerShares Introduces 'Hedged' ETF


Invesco PowerShares announced the listing of the PowerShares S&P 500 Downside Hedged Portfolio (NYSEARCA:PHDG) which is expected to begin trading on December 6, 2012. The new ETF is designed to provide broad US equity market exposure but with the flexibility to alter equity exposure depending on market conditions."The PowerShares S&P 500 Downside Hedged Portfolio is among a new breed of investments in the alternative space" Invesco PowerShares senior vice president of new product development Lorraine Wang stated in the press release on Monday. "PHDG 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 overall effect of the liquid alternative strategy is a portfolio with potentially below-average risk that may rise in down markets while potentially participating on the upside."PHDG tracks the performance of the S&P 500 Dynamic VEQTOR Index and the fund's annual expense ratio is 0.39%Other ETF News:PowerShares also announced expense ratio cuts on several of their ETF portfolios. The portfolio names and new expense ratios are listed below:

FTSE RAFI Developed Markets ex-U.S. Portfolio (NYSEARCA:PXF) 0.45%FTSE RAFI Emerging Markets Portfolio (NYSEARCA:PXH) 0.49%FTSE RAFI Asia Pacific ex-Japan Portfolio (NYSEARCA:PAF) 0.49%FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio (NYSEARCA:PDN) 0.49%S&P International Developed High Quality Portfolio (NYSEARCA:IDHQ) 0.45%S&P 500 High Quality Portfolio (NYSEARCA:SPHQ) 0.29%

Continue Reading Below

The managing director of Invesco PowerShares, Ben Fulton, stated that these fee cuts are another way they are improving their overall product lineup for investors. Powershares currently offers over 120 domestic and international ETFs.Follow us on Twitter @ ETFguide for the latest ETF news and research.