Invesco PowerShares Capital Management, LLC, begun trading 2 new ETFS, the PowerShares S&P 500 Momentum Portfolio (NYSEArca: SPMO) and the PowerShares S&P 500 Value Portfolio (NYSEArca: SPVU) on Friday, October 9, 2015.
1.
FUND INFORMATION:
| Symbol: SPMO | Exchange: NYSE Arca |
| Name: PowerShares S&P 500 Momentum Portfolio | Net Expense Ratio: 0.25% |
FUND OBJECTIVE:
The PowerShares S&P 500 Momentum Portfolio seeks investment results that generally correspond (before fees and expenses) to the price and yield of the S&P 500 Momentum Index.
REFERENCE INDEX:
The S&P 500 Momentum Index is designed to track the performance of approximately 100 stocks in the S&P 500 Index that have the highest “momentum score.”
In general, momentum is the tendency of an investment to exhibit persistence in its relative performance; a “momentum style” of investing emphasizes investing in securities that have had better recent performance compared to other securities. The momentum score for each security included in the Underlying Index is based on upward price movements of the security as compared to other eligible securities within the S&P 500 Index.
In selecting constituent securities for the Underlying Index, the Index Provider first calculates the momentum score of each stock in the S&P 500 Index by evaluating the percentage change in the stock’s price over the last 12 months, excluding the most recent month, and applying an adjustment based on the security’s volatility over that period. The Index Provider then selects the 100 stocks with the highest momentum score for inclusion in the Underlying Index. The Underlying Index uses a modified market capitalization-weighted strategy, as the Index Provider weights securities by multiplying their market capitalization and their momentum score.
The Fund generally invests in all of the securities comprising the Underlying Index in proportion to their weighting in the Underlying Index.
Top 10 Holdings (10/09/2015):
| Amazon.com Inc | 5.28% |
| Pfizer Inc | 4.78% |
| Walt Disney Co | 4.66% |
| Home Depot Inc | 4.34% |
| CVS Health Corp | 4.11% |
| Visa Inc | 3.49% |
| UnitedHealth Group Inc | 3.14% |
| Altria Group Inc | 3.05% |
| Allergan plc | 2.82% |
| Starbucks Corp | 2.78% |
Sector Allocation (10/09/2015):
| Consumer Discretionary | 32.56% |
| Health Care | 27.99% |
| Consumer Staples | 17.65% |
| Information Technology | 10.80% |
| Industrials | 4.87% |
| Financials | 4.66% |
| Materials | 1.19% |
| Energy | 0.28% |
Useful Links:
SPMO Home Page
Category:
2.
FUND INFORMATION:
| Symbol: SPVU | Exchange: NYSE Arca |
| Name: PowerShares S&P 500 Value Portfolio | Net Expense Ratio: 0.25% |
FUND OBJECTIVE:
The PowerShares S&P 500 Value Portfolio seeks investment results that generally correspond (before fees and expenses) to the price and yield of the S&P 500 Enhanced Value Index.
REFERENCE INDEX:
The S&P 500 Enhanced Value Index is designed to track the performance of approximately 100 stocks in the S&P 500 Index that have the highest “value score,” which the Index Provider calculates based on fundamental ratios of a company’s stock, as discussed below. A value stock tends to trade at a lower price relative to such fundamentals and thus may be considered undervalued by investors.
In selecting constituent securities for the Underlying Index, the Index Provider first calculates the value score of each stock in the S&P 500 Index by evaluating each stock’s:
(i) book value-to-price ratio, calculated using the company’s latest book value per share divided by its price;
(ii) earnings-to-price ratio, calculated using the company’s trailing 12-month earnings per share divided by its price; and
(iii) sales-to-price ratio, calculated using the company’s trailing 12-month sales per share divided by its price.
The Index Provider then calculates the value score of each security based on a composite of those three factors and selects the 100 stocks with the highest value score for inclusion in the Underlying Index. The Underlying Index uses a modified market capitalization-weighted strategy, as the Index Provider weights securities by multiplying their market capitalization and their value score.
The Fund generally invests in all of the securities comprising the Underlying Index in proportion to their weighting in the Underlying Index.
Top 10 Holdings (10/09/2015):
| Exxon Mobil Corp | 5.12% |
| JPMorgan Chase & Co | 4.95% |
| Chevron Corp | 4.75% |
| Citigroup Inc | 4.55% |
| Bank of America Corp | 4.52% |
| Wal-Mart Stores Inc | 3.94% |
| American International Group Inc | 3.39% |
| MetLife Inc | 2.53% |
| Phillips 66 | 2.37% |
| Ford Motor Co | 2.36% |
Sector Allocation (10/09/2015):
| Financials | 39.68% |
| Energy | 19.37% |
| Consumer Discretionary | 8.88% |
| Consumer Staples | 8.35% |
| Utilities | 6.72% |
| Information Technology | 6.07% |
| Health Care | 4.90% |
| Industrials | 3.51% |
| Materials | 2.00% |
| Telecoms | 0.52% |
Useful Links:
SPVU Home Page
Category: