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Solactive launches Tradable European Factor Index Series Exclusively licensed to Invesco PowerShares

Solactive announces the launch of a family of European factor indices, which will be used as the reference indices for five Invesco PowerShares ETFs…..

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Timo Pfeiffer, Head of Research at Solactive AG


Solactive announces the launch of a family of European factor indices, which will be used as the reference indices for five Invesco PowerShares ETFs. Specifically, the Solactive Tradable European Factor Index Series includes five indices targeting strategies such as value, quality, low beta, price momentum, and earnings momentum. 

The new indices and tracking ETFs are:

  • Solactive Tradable European Value Factor Index tracked by the PowerShares Tradable European Value Factor UCITS ETF
  • Solactive Tradable European Quality Factor Index tracked by the PowerShares Tradable European Quality Factor UCITS ETF
  • Solactive Tradable European Low Beta Factor Index tracked by the PowerShares Tradable European Low Beta Factor UCITS ETF
  • Solactive Tradable European Price Momentum Factor Index tracked by the PowerShares Tradable European Price Momentum Factor UCITS ETF
  • Solactive Tradable European Earnings Momentum Factor Index tracked by the PowerShares Tradable European Earnings Momentum Factor UCITS ETF

Each index in the Solactive Tradable European Factor Index Series is composed of 50 European-listed companies chosen from a starting universe of 675 stocks. The selected companies have a high degree of exposure to the equity risk factor specified for that index, and are subject to certain liquidity requirements, and sector caps in order to avoid industry concentration. The weight of each component is assigned depending on how its liquidity compares with that of other stocks in the same index. In this way, the index methodology allows investors to gain exposure to factors, while tilting the composition towards more liquid companies. 

Timo Pfeiffer, Head of Research at Solactive, commented: “Factor Investing has gained significant traction over the past years and can deliver good diversification to investors’ portfolios.  The Solactive Tradable European Factor Index Series allows investors to capture the different risk premia on basis of diversified portfolios of European companies. It has been great to team up with Invesco PowerShares and leverage on their expertise in ETFs to define and build these strategies.”

Mellor Christopher SourceChris Mellor, Equity Product Specialist at Invesco PowerShares EMEA, said: “Invesco PowerShares is a global leader in factor ETFs, a position we have reached by offering investors competitive, compelling and cost-effective products focused on the right indices. We believe that factor strategies such as value, quality and price momentum will continue to see strong demand from European investors as they look for the portfolio performance and diversification benefits they provide.” 

The Solactive Tradable European Factor Indices are calculated as price return and net total return indices, and are published in EUR. Composition is rebalanced monthly.

 

Source: ETFWorld

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