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Portfolio > ETFs

Going for Foreign Beta

By Ron DeLegge

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Invesco PowerShares Capital Management added two “high beta” ETFs, focusing on emerging markets and developed international stocks.

For emerging markets, the PowerShares S&P Emerging Markets High Beta Portfolio (EEHB) follows a benchmark consisting of the 200 stocks in the S&P Emerging BMI Plus LargeMid Cap Index that are the most sensitive to changes in market returns (or beta) over the past 12 months. Constituents are weighted by their corresponding beta, with the most sensitive stocks receiving the highest weights.

“Investors are seeking a more tactical approach to investing and we believe the PowerShares Global Factor-Driven ETFs can provide an efficient means to capitalize on bull markets by adding beta to their portfolio, while having the flexibility to reduce risk in flat or bear markets by adding low volatility strategies to their portfolio,” said Ben Fulton, Invesco PowerShares managing director of global ETFs. 

The PowerShares S&P International Developed High Beta Portfolio (IDHB) is composed of the 200 stocks in the S&P Developed ex-US and South Korea LargeMid Cap BMI Index that are the most sensitive to changes in market returns over the past 12 months.

InvescoPowerShares has been expanding its lineup of high beta and low volatility ETFs over the past year.

In May 2011, the PowerShares S&P High Beta Portfolio (SPHB) and S&P 500 Low Volatility Portfolio (SPLV) were launched. In January 2012, the PowerShares S&P Emerging Markets Low Volatility Portfolio (EELV) and the PowerShares S&P International Developed Low Volatility Portfolio (IDLV) were both added.

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