Invesco PowerShares has launched two exchange-traded funds (ETFs) focusing on high-dividend, low-volatility UK and emerging market strategies.
The PowerShares FTSE UK High Dividend Low Volatility Ucits ETF and FTSE Emerging Market counterpart launched on May 31 and follow Invesco’s European and US equity offerings of the same style.
Invesco said the ETFs aimed to provide investors with a mirror of FTSE’s UK and emerging market high-dividend low-volatility dual factor indices.
The UK index tracks the 50 least-volatile high-dividend yielding stocks in the FTSE 350. It screens for the 75 stocks with the highest 12-month trailing dividend yields before selecting the 50 least volatile.
The emerging market product screens 150 stocks using the same measure before choosing 100 for inclusion.
Head of Invesco PowerShares for Emea, Byron Lake, said the company’s research revealed income and low volatility strategies were two of the more important styles for European investors.
“By combining the high dividend and low volatility screens, we are seeking to present the best of both factors for UK and emerging markets equity exposure.”
