Europe’s first listing of S&P high dividend low-vol ETF

London stock exchangeExchange-traded fund (ETF) provider, Invesco Powershares, has listed an ETF on the London Stock Exchange (LSE) designed to provide attractive yield coupled with lower volatility from 50 US equities.

The product has already been listed on the Irish Stock Exchange.

The Powershares S&P 500 High Dividend Low Volatility Ucits ETF invests in the 50 least-volatile high dividend-yielding stocks in the underlying S&P 500 Index in order to strike a balance between dividend yield and volatility.

Bryon Lake, head of Invesco Powershares in Europe, Middle East and Africa, says that as the US is the largest single-country economy in the world, the expansion of the firm’s smart beta products allows investors to gain more refined exposure to US equities.

“The current climate of low interest rates means investors are continuing to seek yield, and are especially wary of the potential of increased volatility,” he says.

“By combining the high dividend and low volatility screens, we’re seeking to present investors with the best of both worlds,” adds Lake.

Following the LSE and Irish Stock Exchange listings, the ETF will be listed by Euronext Paris, Borsa Italiana, Deutsche Börse and SIX Swiss Exchange.

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