The ETF seeks results that correspond to the price and yield of the EURO iSTOXX® High Dividend Low Volatility 50 (Net Total Return) Index. It will provide exposure to high dividend paying Eurozone stocks while aiming to minimise the risks that come with market volatility.
“As our recent European Investor Research as well as recent asset flows have shown, dividend strategies and low volatility strategies are currently two of the most popular factors used as smart beta investments,” said Bryon Lake, head of Invesco PowerShares EMEA. “By combining the high dividend and low volatility screens, we’re seeking to present the best of both worlds for Eurozone equity exposure.”
Following London and Ireland, the ETF will also list on the Italian, German, French and Swiss stock exchanges in the weeks to come. The launch is part of Invesco PowerShare’s strategy to offer new smart beta solutions, and follows the listing of the PowerShares S&P 500 High Dividend Low Volatility UCITS ETF last year.
The benchmark index screens all securities from the EURO STOXX Index and ranks them in descending order of 12 months’ dividend yields. The top 75 stocks are selected, and from them 50 stocks are selected to be included in the benchmark index.
Hartmut Graf, CEO of STOXX Limited, said: “Our EURO iSTOXX High Dividend Low Volatility 50 Index is based on the very liquid EURO STOXX benchmark. It is the first time that screens for high dividend and low volatility stocks are applied to the renowned benchmark. The index offers market participants an innovative way to gain exposure to Eurozone companies and further enhance their smart-beta strategies.”
