New products and changes introduced over the last week include the addition of a bond index from Solactive AG; two ETFs from Deutsche Asset & Wealth Management; and Invesco PowerShares added a portfolio.
Also, Nasdaq and KBW announced a strategic index partnership and Envestnet announced a strategic investment in AlphaHedge Capital Partners.
Here are the latest developments of interest to advisors:
1) Invesco PowerShares Launches Portfolio
Invesco PowerShares Capital Management LLC has announced the launch of the PowerShares S&P 500 ex-Rate Sensitive Low Volatility Portfolio (XRLV).
Based on the S&P 500 Low Volatility Rate Response Index, XRLV seeks to offer low volatility equity exposure while seeking protection against rising interest rates.
The index is composed of the 100 constituents of S&P 500that exhibit both low volatility and low interest rate risk. It aims to include stocks exhibiting low volatility characteristics, after removing stocks that historically have performed poorly in rising interest rate environments.
The fund and index will be rebalanced and reconstituted on the third Friday of May, August, November and February. Constituents are weighted relative to the inverse of their volatility, with the least volatile stocks receiving the highest weights.
2) Deutsche Asset & Wealth Management Adds Two ETFs
Deutsche Asset & Wealth Management has announced the launch of two currency-hedged exchange traded funds on its Deutsche X-trackers platform, Deutsche X-trackers Dow Jones Hedged International Real Estate ETF (DBRE) and Deutsche X-trackers S&P Hedged Global Infrastructure ETF (DBIF). Both ETFs aim to mitigate exposure to fluctuations between the value of the U.S. dollar and the currencies of the countries included in the underlying indices.
DBRE aims to provide investors with exposure to the Dow Jones Global ex-U.S. Select Real Estate Securities Total Return Net Index, which seeks to track the performance of publicly traded real estate securities in countries outside the U.S.