PowerShares releases four financial ETFs

Invesco PowerShares has released four ETFs on NYSE Arca, providing access to "hard-to-reach" financial sectors.

The funds replicate KBW indices that track the performance of real estate investment trusts (REITs), financial services, and the property and casualty insurance markets.

The Premium Yield Equity REIT and High Dividend Yield Financial Portfolios both track KBW indices that use a dividend yield weighted methodology seeking to reflect the performance of between 24 and 40 companies. The funds invest in small and mid cap US equity REITs and publicly listed US financial companies respectively.

The International Financial and Property & Casualty Insurance Portfolios use modified market capitalization weighted KBW indices. The KBW Global ex-U.S. Financial Sector index replicates the performance of approximately 60 non-US financial companies while the Property & Casualty index comprises 24 property and casualty insurance companies.

Invesco PowerShares managing director of global ETFs Ben Fulton says that the quality of KBW's research provides a unique perspective on the financial industry, as well as an ability to deliver indexing strategies for investors looking to access specific sub-sectors.

KBW co-head of research John Howard says that the new ETFs also provide an effective hedge against market volatility risk.