PowerShares has launched new low volatility and high beta exchange traded funds (ETFs) that help investors manage risk.
PowerShares S&P 500 Low Volatility Portfolio (NYSEArca: SPLV) and the PowerShares S&P 500 High Beta Portfolio (NYSEArca: SPHB) just hit the market with the amount of volatility experienced and projected at low levels compared to recent years. [VIX ETFs Thrive as Market Stumbles.]
SPLV will invest in the 100 stocks from the S&P 500 Index with the lowest realized volatility over the past 12 months as determined by Standard & Poor’s. [VIX ETFs: How Low Can They Go?]
SPHB is the first beta-weighted ETF. Beta is a mathematical measure of how sensitive a stock is to overall market moves. Together, the two funds are complimentary, while SPLV should be particularly attractive in times of weak markets due to its focus on low-volatility stocks, SPHB is designed for investors who want to take a bullish tactical view of the U.S. stock market, says Cinthia Murphy for Index Universe.
Expense ratios are set at 0.25% for each fund.
Tisha Guerrero contributed to this article.