Invesco PowerShares Capital Management, a provider of exchange traded funds, is set to launch a suite of ETFs based on the Research Affiliates Fundamental Index methodology. The range includes two new products and the rebranding of seven existing funds.

The new funds, called the PowerShares Fundamental Pure Large Growth Portfolio and the PowerShares Fundamental Pure Large Value Portfolio, will be listed on the NYSE Arca. They are based on the RAFI Fundamental Large Growth and the RAFI Fundamental Large Value indexes respectively.

In addition, the firm is changing the names and ticker symbols for seven of its products in the RAFI series.

As part of the rebranding, portfolio management fees will be reduced to 0.29 per cent, and operating expenses (excluding certain expenses) will be capped at 0.39 per cent until 31 August 2012, the asset manager said.

The RAFI Index Series is made up of the 2,500 largest US-listed companies, based on the following four measures of size: latest available book value, cash flow averaged over the prior five years, sales averaged over the prior five years and total dividend distributions averaged over the prior five years. A composite fundamental weight is then calculated for each firm by equally weighting the four fundamental measures, and each is then classified as “large,” “mid” or “small” and “growth,” “core” or “value” according to a specific process.