Adding on to its extensive suite of alternative index-based exchange traded funds, PowerShares launched five new smart-beta strategies.

Invesco Powershares, along with Dorsey, Wright & Associates, added the PowerShares DWA Tactical Sector Rotation Portfolio (NYSEArca: DWTR) Friday, October 9, according to a press release.

DWTR follows DWA’s indexing methodology. Specifically, the DWTR acts like a fund-of-funds, tracking the Dorsey Wright Sector 4 Index, which may select up to four PowerShares DWA Sector Momentum ETFs, including PowerShares DWA Basic Materials Momentum Portfolio (NYSEArca: PYZ), PowerShares DWA Consumer Cyclicals Momentum Portfolio (NYSEArca: PEZ), PowerShares DWA Technology Momentum Portfolio (NYSEArca: PTF), PowerShares DWA Consumer Staples Momentum Portfolio (NYSEArca: PSL), PowerShares DWA Energy Momentum Portfolio (NYSEArca: PXI), PowerShares DWA Financial Momentum Portfolio (NYSEArca: PFI), PowerShares DWA Healthcare Momentum Portfolio (NYSEArca: PTH), PowerShares DWA Industrials Momentum Portfolio (NYSEArca: PRN) and PowerShares DWA Technology Momentum Portfolio (NYSEArca: PTF).

The momentum ETF strategies are based of DWA Technical Leaders Indices, which identifies companies that are showing the highest relative strength, or momentum, relative to the broader markets. The momentum indicator compares the magnitude of recent gains to recent losses in an attempt to determine the oversold and overbought conditions of an asset.

Consequently, DWTR will focus on the fastest movers among quickly strengthening company stocks. Additionally, the newly launched ETF benefits from a sector rotation strategy.

“The power of this strategy results from its ability to take the DWA Sector 4 Index and package it in the efficient ETF wrapper, which potentially reduces tax burden, transaction costs, and eases portfolio implementation,” Nick Kalivas, senior equity product strategist at Invesco PowerShares, said in the Press release. “Another potential benefit to this momentum strategy is that it may be used in tactical and strategic allocations when combined with other smart beta products or asset classes.”

Additionally, PowerShares came out with four other smart-beta ETFs of its own, including the PowerShares S&P 500 Momentum Portfolio (NYSEArca: SPMO), PowerShares S&P 500 Value Portfolio (NYSEArca: SPVU), PowerShares Developed EuroPacific Currency Hedged Low Volatility Portfolio (NYSEArca: FXEP) and PowerShares Japan Currency Hedged Low Volatility Portfolio (NYSEArca: FXJP), according to a separate press release.

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