Invesco’s (NYSE: IVZ) PowerShares unit, the fourth-largest U.S. issuer of exchange traded funds, is considering a possible entry into the rapidly growing currency hedged segment of the ETF market.
According to a recent filing with the Securities and Exchange Commission, Illinois-based PowerShares has filed plans for four currency hedged ETFs that combine that popular theme with one of PowerShares’ core competencies: Low volatility funds. The filing did not include tickers or expense ratios for the proposed funds.
PowerShares could introduce the following currency hedged low volatility ETFs: The PowerShares International Developed Markets Currency Hedged Low Volatility Portfolio, PowerShares Emerging Markets Currency Hedged Low Volatility Portfolio, PowerShares Japan Currency Hedged Low Volatility Portfolio and the PowerShares Europe Currency Hedged Low Volatility Portfolio.
PowerShares issues the largest low volatility ETF, the PowerShares S&P 500 Low Volatility Portfolio (NYSEArca: SPLV), but the firm has also found some success with international “low vol” offerings, such as the $306.9 million PowerShares S&P International Developed Low Volatility Portfolio (NYSEArca: IDLV) and the $227.4 million PowerShares S&P Emerging Markets Low Volatility Portfolio (NYSEArca: EELV). [Investors Flock to Low Vol ETFs]
The growth rate of currency hedged ETFs has been even more exponential than overall industry growth, compelling issuers that are currently not in the space to consider entry.