ETF dynamically tracks S&P 500 Index in combination with S&P 500 VIX Short Term Futures.…
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A new index fund from the ETF offering issued by PowerShares Global Funds has been tradable on Xetra and Börse Frankfurt since Friday.
ETF name: PowerShares S&P 500 VEQTOR UCITS ETF
Asset class: multi-asset index ETF
Total expense ratio: 0.39 percent
Distribution policy: distributing
Benchmark: S&P 500 Dynamic VEQTOR Index
The PowerShares S&P 500 VEQTOR UCITS ETF gives investors access to the performance of US companies from the S&P 500 Index. The ETF is also aimed at reducing potential loss in times of higher price volatility through the use of the S&P 500 VIX Short-Term Futures.
The reference index, S&P 500 Dynamic VEQTOR Index, is made up of three components: stock corporations in the S&P 500 Index, volatility through the S&P 500 VIX Short-Term Futures and a cash component. The share of the individual asset classes is dynamically determined depending on the phase of volatility. The size of the volatility component is increased in times of higher volatility, but the 40 percent limit is not exceeded.