Invesco, begun trading two new High Dividend Low Volatility ETFS, the PowerShares S&P International Developed High Dividend Low Volatility Portfolio (Bats: IDHD), and the PowerShares S&P SmallCap High Dividend Low Volatility Portfolio (Bats: XSHD) on Thursday, December 01, 2016. Here is a synopsis of the new ETFs:
1.
FUND INFORMATION:
| Symbol: IDHD | Exchange: BATS |
| Name: PowerShares S&P International Developed High Dividend Low Volatility Portfolio | Net Expense Ratio: 0.30% |
FUND OBJECTIVE:
The PowerShares S&P International Developed High Dividend Low Volatility Portfolio seeks investment results that generally correspond (before fees and expenses) to the price and yield of the S&P EPAC Ex-Korea Low Volatility High Dividend Index.
REFERENCE INDEX:
The S&P EPAC Ex-Korea Low Volatility High Dividend Index is composed of 100 securities in the S&P EPAC Ex-Korea LargeMidCap Index that historically have provided high dividend yields with lower volatility. The S&P EPAC Ex-Korea LargeMidCap Index is designed to measure the large- and mid-cap segment of the equity markets of economically developed countries worldwide and, as of the date of this prospectus, is composed of equity securities of companies with an unadjusted market capitalization between approximately $227 million and $609 billion.
Strictly in accordance with its guidelines and mandated procedures, S&P DJI identifies from the S&P EPAC Ex-Korea LargeMid-Cap Index the 300 securities, excluding U.S. and South Korean securities, with the highest dividend yields over the past 12 months, with no one country and no one sector within the S&P EPAC Ex-Korea LargeMidCap Index allowed to contribute more than 20 securities and 25 securities, respectively. From those securities, S&P DJI selects for inclusion in the Underlying Index the 100 securities with the lowest volatility over the past 12 months.
Volatility is a statistical measurement of the magnitude of up and down asset price fluctuations (increases or decreases in a stock’s price) over time. The Index Provider weights each of the constituent securities in the Underlying Index by its dividend yield, with the highest dividend-yielding securities receiving the highest weights. Each constituent security comprises between 0.05% and 3.0% of the weight of the Underlying Index, and no sector comprises more than 25% of the Underlying Index.
Fund Top Holdings (12/09/16):
| Symbol | Name | Weight |
| VIV FP | Vivendi SA | 2.59% |
| AIR | Air New Zealand Ltd | 2.53% |
| 303 | VTech Holdings Ltd | 1.69% |
| BEZQ | Bezeq The Israeli Telecommunication Corp Ltd | 1.59% |
| MEL | Meridian Energy Ltd | 1.58% |
| EN FP | Bouygues SA | 1.55% |
| 11 | Hang Seng Bank Ltd | 1.47% |
| SPK | Spark New Zealand Ltd | 1.46% |
| O2D | Telefonica Deutschland Holding AG | 1.43% |
| MLT SP | Mapletree Logistics Trust | 1.41% |
Fund Top Country Allocation (12/09/16):
| Singapore | 16.12% |
| Australia | 14.87% |
| UK | 11.39% |
| N.Zealand | 10.53% |
| Hong Kong | 10.31% |
| France | 7.46% |
| Germany | 4.69% |
| Spain | 4.22% |
| Sweden | 3.74% |
| Norway | 3.27% |
Fund Sector Allocation (12/09/16):
| Utilities | 19.17% |
| R.Estate | 14.58% |
| Industrials | 14.55% |
| Telecoms | 14.08% |
| Financials | 10.60% |
| Cons.Discretionary | 8.45% |
| Cons.Staples | 5.30% |
| Materials | 4.33% |
| Info Technology | 4.10% |
| Health Care | 3.48% |
| Energy | 1.36% |
Useful Links:
IDHD Home Page
2.
FUND INFORMATION:
| Symbol: XSHD | Exchange: BATS |
| Name: PowerShares S&P SmallCap High Dividend Low Volatility Portfolio | Net Expense Ratio: 0.30% |
FUND OBJECTIVE:
The PowerShares S&P SmallCap High Dividend Low Volatility Portfolio seeks investment results that generally correspond (before fees and expenses) to the price and yield of the S&P SmallCap 600 Low Volatility High Dividend Index.
REFERENCE INDEX:
The S&P SmallCap 600 Low Volatility High Dividend Index is composed of 60 securities in the S&P SmallCap 600 Index that historically have provided high dividend yields with lower volatility.
The S&P SmallCap 600 Index is designed to measure the small-capitalization segment of the U.S. equity market and, as of the date of this prospectus, is composed of equity securities of companies with an unadjusted market capitalization between $400 million and $1.8 billion. Strictly in accordance with its guidelines and mandated procedures, S&P DJI identifies from the S&P SmallCap 600 Index the 90 securities with the highest dividend yields over the past 12 months, with no one sector within the S&P SmallCap 600 Index allowed to contribute more than 10 securities. From those securities, S&P DJI selects for inclusion in the Underlying Index the 60 securities with the lowest volatility over the past 12 months. Volatility is a statistical measurement of the magnitude of up and down asset price fluctuations (increases or decreases in a stock’s price) over time. The Index Provider weights each of the constituent securities in the Underlying Index by its dividend yield, with the highest dividend-yielding securities receiving the highest weights. Each constituent security comprises between 0.05% and 3.0% of the weight of the Underlying Index, and no sector comprises more than 25% of the Underlying Index.
Fund Top Holdings (12/09/16):
| Symbol | Name | Weight |
| GHL | Greenhill & Co Inc | 4.46% |
| CMO | Capstead Mortgage Corp | 3.06% |
| CLMS | Calamos Asset Management Inc | 2.82% |
| SBRA | Sabra Health Care REIT Inc | 2.75% |
| NPK | National Presto Industries Inc | 2.72% |
| IPHS | Innophos Holdings Inc | 2.71% |
| CNSL | Consolidated Communications Holdings Inc | 2.53% |
| CALM | Cal-Maine Foods Inc | 2.52% |
| GEO | GEO Group Inc/The | 2.52% |
| SWM | Schweitzer-Mauduit International Inc | 2.27% |
Fund Sector Allocation (12/09/16):
| Real Estate | 15.76% |
| Consumer Staples | 11.67% |
| Industrials | 10.78% |
| Utilities | 10.40% |
| Financials | 10.34% |
| Materials | 9.90% |
| Info Technology | 9.71% |
| Cons.Discretionary | 7.73% |
| Health Care | 7.46% |
| Telecoms | 6.25% |
Useful Links:
XSHD Home Page
ETFtrack comment:
With these two funds, IDHD and XSHD, PowerShares now has 76 ETFs in its factor lineup.
Here is a comment from Dan Draper, Global Head of PowerShares by Invesco:
“Blending factors can be a key to unlocking their diversification power. Combining high dividend and low volatility factors in our two newest ETFs may also provide investors with more defensive access to equity income in the face of uncertain markets.”