Survey Forecasts Rising Usage of Factor-Based ETFs as "Next Wave of Smart Beta" May Improve Diversification and Dampen Portfolio Volatility

Mittwoch, 21.09.2016 15:05 von

PR Newswire

DOWNERS GROVE, Ill., Sept. 21, 2016 /PRNewswire/ -- Invesco PowerShares Capital Management, LLC, a leading global provider of exchange-traded funds (ETFs), today announced results of a factor investing-focused survey1 of financial professionals at the Morningstar ETF Conference in Chicago.

PowerShares by Invesco (PRNewsFoto/Invesco PowerShares Capital Mana)

Despite concern in recent months that select ETF strategies were becoming expensive, the overwhelming majority of survey respondents (80%) indicated that they are not worried about a potential bubble in factor-based ETFs.

Rather, 100% of survey participants indicated that they plan to at least maintain their current levels of factor-based exposure, with 56% of those respondents looking to increase their allocations of factor-based strategies within the next 12 months. Despite looming uncertainty of the Presidential election and the Federal Reserve's interest rate timeline, financial professionals seem confident that precise factor strategies may help investors adequately navigate the market in the year ahead.

Survey respondents demonstrated further confidence in factor-based ETFs by characterizing the growing trend as "the next wave of smart beta investing."

Interest in smart beta ETF investing began more than 10 years ago. In May 2003, PowerShares pioneered the world of factor-based, alternatively weighted ETFs, which later became known as "smart beta." In 2006, one of the world's largest asset managers, Invesco, acquired PowerShares to leverage the power of delivering these strategies in an ETF wrapper that blends the positive characteristics of active and passive management while improving the toolbox of options available to investors.

"As we celebrate the 10-year anniversary of Invesco acquiring PowerShares, I think it's very encouraging to see advisors and investors looking beyond the noise to see the power behind factor-based ETFs," said Dan Draper, Global Head of PowerShares. "While some have criticized individual factors for underperforming at times, the power of these strategies is best leveraged when two or more factors are combined to help smooth out investment returns over the long run."

Survey participants echoed these sentiments, with nearly half saying that they are using factor-based ETF strategies for greater diversification (45%) and to dampen portfolio volatility (43%).

Of those that responded, less than 15% indicated that they are using factor-based investing strategies to implement market forecasts in client portfolios.

To learn more about the PowerShares factor-based ETFs, please visit our Factor Investing page here:

1 survey was conducted onsite by Invesco PowerShares at the Morningstar ETF Conference, with 50 respondents from registered investment advisors (RIAs), fund providers, ETF strategists and broker dealers being surveyed.

About Invesco PowerShares Capital Management LLC and Invesco, Ltd.
Invesco PowerShares Capital Management LLC is leading the Intelligent ETF Revolution® through its family of 140 domestic and international exchange-traded funds, which seek to outperform traditional benchmark indexes while providing advisors and investors access to an innovative array of focused investment opportunities. With U.S. franchise assets over $96 billion as of June 30, 2016, PowerShares ETFs trade on both US stock exchanges. For more information, please visit us at or follow us on Twitter @PowerShares.

Invesco Ltd. is a leading independent global investment management firm, dedicated to helping investors worldwide achieve their financial objectives. By delivering the combined power of our distinctive investment management capabilities, Invesco provides a wide range of investment strategies and vehicles to our clients around the world. Operating in more than 20 countries, the firm is listed on the New York Stock Exchange under the symbol IVZ. Additional information is available at

PowerShares® is a registered trademark of Invesco PowerShares Capital Management LLC, investment adviser. Invesco PowerShares Capital Management LLC (Invesco PowerShares) and Invesco Distributors, Inc., ETF distributor, are indirect, wholly owned subsidiaries of Invesco Ltd.

Before investing, investors should carefully read the prospectus/summary prospectus and carefully consider the investment objectives, risks, charges and expenses. For this and more complete information about the Funds call 800 983 0903 or visit for prospectus/summary prospectus.

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SOURCE Invesco PowerShares Capital Management, LLC