A New High-Yield, Multi-Asset ETF

  • Invesco PowerShares introduces DWIN that targets diversified, high-yielding assets
  • The new ETF is a fund of funds, which means that it holds ETFs as its underlying component
  • It may also favor overweighting U.S. Treasuries and reduce holdings to less than five components

Invesco PowerShares has introduced a multi-asset income exchange traded fund to provide yield-oriented investors with a simple fund-of-funds that targets a group of diversified, high-yielding assets.

The newly launched PowerShares DWA Tactical Multi-Asset Income Portfolio (NasdaqGM: DWIN) will try to reflect the performance of the Dorsey, Write & Associates Multi-Asset Iincome Index, which selects components on a combination of relative strength – a momentum indicator, along with current yield, according to a press release. DWIN has a 0.69% expense ratio.

“This strategy is unique in its ability to pivot within a broad array of income funds toward areas that exhibit strong relative strength with an emphasis on income generation,” Tammy DeRosier, President of Dorsey, Wright & Associates, said in the press release.

Relative strength is the measure of a security’s performance over time as compared to the performance of all other securities.

“Therefore, at any given time, the components of the Underlying Index are those Eligible ETFs that the Index Provider believes offer the greatest potential to outperform other Eligible ETFs,” according to the prospectus sheet.