PowerShares Launches 4 Multi-Asset ETFs

Invesco Ltd. IVZ's PowerShares unit, the fourth-largest U.S. issuer of exchange-traded funds, introduced four multi-asset ETFs Thursday.

The PowerShares Conservative Multi-Asset Allocation Portfolio PSMC, an actively managed ETF, looks to deliver total returns with lower risk while featuring diversity among asset classes.

Diversity And Asset Classes

PSMC's “target allocation of total assets: 50 percent to 80 percent in fixed income ETFs, 20 percent to 50 percent in equity ETFs and 5 percent to 10 percent in underlying ETFs that invest in foreign stocks and bonds as well as American depositary receipts (ADRs) and global depositary receipts (GDRs),” according to PowerShares.

A Few Examples

PSMC currently features 10 other PowerShares as its holdings, including popular fare such as the PowerShares Senior Loan Portfolio BKLN and the Powershares FTSE RAFI US 1000 Portfolio PRF, among others.

The PowerShares Moderately Conservative Multi-Asset Allocation Portfolio PSMM uses a moderately conservative investment approach that includes a “target allocation of total assets: 50 percent to 80 percent in fixed income ETFs, 20 percent to 50 percent in equity ETFs and 5 percent to 15 percent in underlying ETFs that invest in foreign stocks and bonds as well as American depositary receipts (ADRs) and global depositary receipts (GDRs),” according to PowerShares.

PSMM, which is also actively managed, holds several of the same ETFs found in PSMC, including BKLN, PRF and the PowerShares Fundamental High Yield Corporate Bond Portfolio PHB.

The PowerShares Balanced Multi-Asset Allocation Portfolio PSMB look to deliver income and the potential for capital appreciation.

PSMB's “target allocation of total assets: 50 percent to 70 percent in equity ETFs, 30 percent to 50 percent in fixed income ETFs and 10 percent to 25 percent in underlying ETFs that invest in foreign stocks and bonds,” according to PowerShares. The ETF is also actively managed.

Related Link: Advisors Continue Allocating Assets To ETFs

Six of PSMB's 10 holdings currently are PowerShares equity ETFs, including PRF and the PowerShares S&P 500 Low Volatility Portfolio SPLV. PSMB is also actively managed.

The PowerShares Growth Multi-Asset Allocation Portfolio PSMG seeks long-term capital appreciation through diversification.

“The Fund's target allocation of total assets: 60 percent to 80 percent in equity ETFs, 20 percent to 40 percent in fixed income ETFs and 20 percent to 30 percent in underlying ETFs that invest in foreign stocks and bonds,” said PowerShares.

Seven of PSMG's top 10 holdings are equity funds, including PRF and SPLV. The actively managed ETF charges 0.39 percent per year.

All four of the new ETFs trade on Bats, bringing the total of ETFs trading there to nearly 160 from 27 issuers.