Invesco PowerShares, an ETF provider known for its alternative or smart beta offerings, rolled out a handful of cheap, traditional beta indexed options under a newly minted PureBeta appellation.
On Friday, PowerShares launched the five new ETFs, including:
- PowerShares PureBetaSM MSCI USA Portfolio (BATS: PBUS), which has a 0.04% expense ratio
- PowerShares PureBetaSM MSCI USA Small Cap Portfolio (BATS: PBSM), which has a 0.06% expense ratio
- PowerShares PureBetaSM FTSE Developed ex-North America Portfolio (BATS: PBDM), which has a 0.07% expense ratio
- PowerShares PureBetaSM FTSE Emerging Markets Portfolio (BATS: PBEE), which has a 0.14% expense ratio
- PowerShares PureBetaSM 0-5 Yr US TIPS Portfolio (BATS: PBTP), which has a 0.07% expense ratio
PBUS tries to reflect the performance of the MSCI USA Index, which is comprised of large- and mid-cap U.S. equities and weights securities by their free float-adjusted market capitalization.
PBSM tries to reflect the performance of the MSCI USA Small Cap Index, which includes small-cap U.S. equities weighted by their free float-adjusted market capitalization.
PBDM tries to reflect the performance of the FTSE Developed ex North America Index, which includes large- and mid-cap developed markets outside North America.
PBEE tries to reflect the performance of the FTSE Emerging Index, which tracks large- and mid-sized companies from emerging countries.
Lastly, PBTP tries to reflect the performance of the BofA Merrill Lynch 0-5 Year US Inflation-Linked Treasury Index, which includes U.S. Treasury Inflation Protected Securities with a remaining maturity of at least one month and less than five years.
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While the new PowerShares ETFs are not anything new in the ETF space, the funds are the cheapest options covering their respective benchmark indices. The competitive pricing may be one way for PowerShares to wrestle assets away from more established ETFs tracking the same benchmarks. The new ETFs’ price points are only a few basis points off from the cheapest ETFs in their respective categories as well.
For more information on new fund products, visit our new ETFs category.