PowerShares to Introduce Downside Hedge ETF Thursday
Invesco's (NYSE: IVZ) PowerShares unit, the fourth-largest U.S. ETF issuer, said it today it expects to introduce the PowerShares S&P 500 Downside Hedged Portfolio (NYSE: PHDG) on Thursday, December 6, 2012. The new ETF, which will feature an annual expense ratio of 0.39 percent, "will be a liquid alternative solution providing investors broad US equity market exposure with a downside hedge by dynamically allocating to VIX futures and cash depending on market volatility trends," according to PowerShares.
The PowerShares S&P 500 Downside Hedged Portfolio will be an actively managed product. PowerShares currently offers several actively managed ETFs, including the PowerShares Active Mega Cap Fund (NYSE: PMA) and the PowerShares Active Low Duration Fund (NYSE: PLK).
The PowerShares S&P 500® Downside Hedged Portfolio "will use a rules-based approach to dynamically shift its exposure among the S&P 500 Index, VIX futures and cash, depending on market volatility," the firm said in a statement.
PHDG will be the seventh new ETF introduced this year by PowerShares. The most recent new addition to the firm's lineup is the PowerShares S&P 500 High Dividend Portfolio (NYSE: SPHD). SPHD is less than two months old and already has nearly $26 million in assets under management.
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