FYI: In case you have not heard, interest rates are expected to start rising soon, and as we know, this will weigh on the returns of bonds. But what about stocks? Some stocks, such as utility stocks, are more sensitive to interest rates than others. Hence, when rates rise, stocks with a high, inverse level of sensitivity to interest rates are likely to underperform the broader market. As a solution to this issue, PowerShares has devised a new ETF that reduces its holdings of those rate-sensitive stocks, but has done so by adding that twist to its popular low volatility ETF, the S&P 500 Low Volatility Portfolio ETF (SPLV).
Regards,
Ted
http://dailyalts.com/reduce-rate-sensitivity-new-powershares-equity-etf/
