Invesco announces fee changes for selected ETFs

Invesco announces fee changes for selected ETFs

Invesco announces fee changes for selected ETFs

Invesco has announced an array of changes to the names and fees of selected ETFs.

The changes set to take effect on or about July 27 include fee reductions for the following funds:

  • PowerShares Low Volatility Portfolio ETF –  will be renamed Invesco Low Volatility Portfolio ETF with a new management fee of 0.37% (from 0.55%);
  • PowerShares Fundamental High Yield Corporate Bond Index ETF –  will be renamed Invesco Fundamental High Yield Corporate Bond Index ETF with a new management fee of 0.55% (from 0.65%);
  • PowerShares Senior Loan Index ETF – to be renamed Invesco Senior Loan Index ETF, with a new management fee of 0.8% (reduced from 0.72%);
  • PowerShares S&P 500 Low Volatility Index ETF – to be renamed the Invesco S&P 500 Low Volatility Index ETF, with a new management fee of 0.3% (from 0.35%)
  • PowerShares FTSE RAFI Global Small-Mid Fundamental ETF – to be renamed Invesco FTSE RAFI Global Small-Mid ETF, with a management fee of 0.49% (from 0.6%);
  • PowerShares FTSE RAFI U.S. Fundamental Index ETF - to be renamed Invesco FTSE RAFI U.S. Index ETF, whose management fee will be 0.44% (from 0.55%);
  • PowerShares FTSE RAFI U.S. Fundamental Index ETF II - to be renamed Invesco FTSE RAFI U.S. Index ETF II, with a management fee of 0.44% (from 0.55%);
  • PowerShares DWA Global Momentum Index ETF - to be renamed Invesco DWA Global Momentum Index ETF, with a new management fee of 0.05% (from 0.15%); and
  • PowerShares QQQ Index ETF - to be renamed Invesco QQQ Index ETF, with a new management fee of 0.25% (from 0.25%).

Invesco clarified that the management fee for its DWA Global Momentum Index ETF may vary by up to 85 basis points on an annualized basis, depending on which Invesco ETFs it holds as well as their allocations.

The firm also announced waivers and new names for the following ETFs:

  • PowerShares S&P Emerging Markets Low Volatility Index ETF - to be renamed Invesco S&P Emerging Markets Low Volatility Index ETF, with a net management fee of 0.34% (originally at 0.44%) after waivers; and
  • PowerShares FTSE RAFI Global+ Fundamental Index ETF – to be renamed Invesco FTSE RAFI Global+ Index ETF, with a net management fee of 0.5% (originally 0.6%) after waivers.

The waiver for the S&P Emerging Markets Low Volatility Index ETF will remain in effect until at least February 28, 2019; the waiver for its FTSE RAFI Global+ Index ETF, meanwhile, will stay in effect until at least December 31, 2019.

The waivers for the two funds are on an annualized basis; for waivers less than a year, the net management fees for the funds will be higher than the announced figures of 0.34% and 0.5%.

 

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