Here is the press release for today’s product launch. Those interested in using the “Power4” methodology now have a way to do that within a single CUSIP.
DOWNERS GROVE, Ill., Oct. 9, 2015 /PRNewswire/ — Invesco PowerShares Capital Management, LLC, a leading global provider of exchange-traded funds (ETFs), announced today the launch of the PowerShares DWA Tactical Sector Rotation Portfolio (DWTR). Dorsey, Wright & Associates (DWA) is a leading registered investment advisory firm based in Richmond, Virginia.
DWTR implements an unemotional approach, focusing on relative strength, a momentum indicator that compares the magnitude of recent gains to recent losses in an attempt to determine overbought and oversold conditions of an asset, as a longer term strategy that may help reduce potential turnover, but is also adaptive enough to rotate a portfolio on a monthly basis as the market dictates. PowerShares’ solution benefits from a sector rotation strategy that provides factor exposure to momentum and also features a cash component (represented by 0-6 month T-Bills) for risk management during market downturns.
“The power of this strategy results from its ability to take the DWA Sector 4 Index and package it in the efficient ETF wrapper, which potentially reduces tax burden, transaction costs, and eases portfolio implementation,” said Nick Kalivas, senior equity product strategist at Invesco PowerShares. “Another potential benefit to this momentum strategy is that it may be used in tactical and strategic allocations when combined with other smart beta products or asset classes.”
“Invesco PowerShares has been a valued partner to Dorsey Wright for close to a decade,” said Tammy DeRosier, President at Dorsey, Wright & Associates. “We are excited to continue our work together, launching this unique sector rotation strategy product that seeks to dynamically adjust monthly to sector trends, as well as prevailing market conditions.”
DWA’s methodology uses technical analysis to identify market trends which can potentially be used to capitalize on performance differences between sectors. Allocations are then adjusted based on DWA’s proprietary relative strength methodology.
Product Information found here.
