The PowerShares Europe Currency Hedged Low Volatility Portfolio is based on the S&P Eurozone Low Volatility USD Hedged Index. The Fund generally will invest at least 90% of its total assets in common stocks that comprise the Index.
The Index is composed of the 80 least volatile stocks in the S&P Eurozone BMI Index that meet a certain liquidity threshold. The Underlying Index is designed to include stocks exhibiting low volatility characteristics. The Index holdings are then 100% currency hedged to the US dollar using rolling one month forward contracts that are adjusted monthly. The Fund and Index constituents are rebalanced and reconstitutioned after the close on the third Friday of March, June, September and December. Constituents are weighted relative to the inverse of their volatility, with the least volatile stocks receiving the highest weights.