New products introduced over the last week include Brown Brothers Harriman’s new ETF Connect suite of products specific to ETFs and Wasatch launched its new Emerging Markets Select Fund.
In addition, the Power Dividend Index was launched by W.E. Donoghue together with Standard & Poor’s and Euro Pacific Capital introduced market-linked CD offerings, and PowerShares is praised for a low-volatility ETF.
Here are the latest developments of interest to advisors:
1) PowerShares Wins Sharpe Award for Volatility-Focused ETF
Invesco PowerShares Capital Management, which recently dropped fees for some of its ETFs, said its PowerShares S&P 500 Low Volatility Portfolio (SPLV) recently received the William F. Sharpe Award for ETF Product of the Year. Listed on May 5, 2011, SPLV represents the first and largest low-volatility weighted ETF available to US investors, according to the ETF provider. The ETF recently surpassed $3 billion in assets under management.
This year’s award was presented at the 2012 Global Indexing & ETFs Conference held in Phoenix in early December. SPLV was recognized as ETF Product of the Year for having the most significant impact on the ETF market over the previous 12 months.
This is the second consecutive year a PowerShares ETF has received this prestigious award, following the PowerShares Fundamental High Yield Corporate Bond Portfolio (PHB) as the 2011 recipient.
Since inception through November 30, 2012, the PowerShares S&P 500 Low Volatility Portfolio had a total return including dividends of 18.31% vs. a total return of 9.91% for the S&P 500 Index, and it has done so with about 30% less volatility, according to the ETF provider.
2) Wasatch Launches Emerging Markets Select Fund
Wasatch Advisors, the investment manager to the Wasatch Funds, announced Thursday the launch of the Wasatch Emerging Markets Select Fund (WAESX). This no-load mutual fund invests in a select portfolio of 30 to 50 geographically diversified emerging-markets companies of all sizes and is managed by Ajay Krishnan. He is joined by veteran international manager Roger Edgley, director of international research at Wasatch Advisors.
While WAESX can invest in stocks of all sizes, many of the companies are likely to be those that have “graduated” beyond small-cap size. Krishnan said of the strategy, “We generally seek countries with attractively valued stock markets and growing consumer economies driven by domestic (home-country) demand and an expanding middle class.” He added, “Unlike many emerging-markets funds, we aren’t as heavily weighted in countries such as China, Korea and Taiwan. Instead, we usually try to uncover attractively priced companies whose fortunes are based on local economies rather than on exports to foreign countries.”
3) W.E. Donoghue Launches the Power Dividend Index with S & P