PowerShares Adds Low Vol Small and Mid Cap ETF

ETFguide

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 - News)

• PowerShares S&P SmallCap Low Volatility Portfolio (XSLV - News)

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 - News) 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 - News) 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 - News), which uses the same screening strategy but on stocks within the S&P 500 index (VOO - News).

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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