Invesco PowerShares has announced the listing of the PowerShares EURO STOXX High Dividend Low Volatility Ucits ETF on London Stock Exchange on 8 January.
The ETF aims to provide exposure to high dividend paying Eurozone stocks while seeking to reduce the risks associated with market volatility.
It will be further listed on the following exchanges : Borsa Italiana, Deutsche Börse and Euronext Paris on 18 January 2016 (tbc) and SIX Swiss Exchange in February 2016 (tbc).
The benchmark index (EURO iSTOXX® High Dividend Low Volatility 50 (Net Total Return) Index) ranks securities from the broad EURO STOXX Index in descending order of 12 months’ dividend yields.
The top 75 stocks are selected, with a maximum of 10 stocks per country and a weighting cap of 3% per security. From the selection list, the top 50 stocks are selected to be included in the benchmark index.
Bryon Lake, head of Invesco PowerShares, EMEA, said : “We’re very excited about the PowerShares EURO STOXX High Dividend Low Volatility Ucits ETF, which we have launched to potentially help in the search for yield with Eurozone stocks, while operating in an uncertain equity environment.
“As our recent European investor research as well as recent asset flows have shown, dividend strategies and low volatility strategies are currently two of the most popular factors used as smart beta investments. By combining the high dividend and low volatility screens, we’re seeking to present the best of both worlds for Eurozone equity exposure.”