Earlier this quarter, PowerShares combined low volatility with another prominent theme: Hedging interest rate risk. The result is the PowerShares ex- Rate Sensitive Low Volatility Portfolio (NYSEArca: XRLV). Investors seem to like the XRLV story as the ETF has accumulated nearly $29 million in assets since coming to market on April 9. [Two Worlds Collide in a new ETF]
The new ETF tracks the S&P 500 Low Volatility Rate Response Index. The Index is composed of the 100 constituents of S&P 500 Index that exhibit both low volatility and low interest rate risk,” according to PowerShares.
Speaking of combining currency hedging with other investment ideas, Deutsche Asset & Wealth Management (Deutsche AWM) brought that idea to the industry level with the April launches of the Deutsche X-trackers Dow Jones Hedged International Real Estate ETF (NYSEArca: DBRE) and Deutsche X-trackers S&P Hedged Global Infrastructure ETF (NYSEArca: DBIF). The new ETFs are the first currency-hedged real estate and infrastructure ETFs that allow investors to access global markets. [Industry Currency Hedged ETFs]
PowerShares S&P 500 ex-Rate Sensitive Low Volatility Portfolio
