TORONTO, April 24, 2012 /CNW/ - Continuing its commitment to empowering investors with exchange-traded funds (ETFs) for diverse market conditions, Invesco Canada today announced the listing of the nation's first low-volatility Canadian equity index ETF, PowerShares S&P/TSX Composite Low Volatility Index ETF [TSX: TLV].
Also added today to the PowerShares lineup of intelligent ETFs are Canada's first high-beta index ETFs: PowerShares S&P/TSX Composite High Beta Index ETF [TSX: THB] and PowerShares S&P 500 High Beta (CAD Hedged) Index ETF [TSX: UHB].
PowerShares' low-volatility offerings, TLV and the recently launched PowerShares S&P 500 Low-Volatility (CAD Hedged) Index ETF [TSX: ULV], are designed to provide investors with core exposure to Canadian and U.S. equities, while offering a measure of protection against market downturns. Meanwhile, the high-beta ETFs, THB and UHB, allow investors to potentially capitalize on bull markets by adding beta to their portfolio.
"Be it a bull or bear market, PowerShares' suite of high-beta/low-volatility ETFs now gives Canadian investors the tools needed to respond to changing market environments," said Michael Cooke, Head of Distribution for PowerShares Canada.
Using a transparent index methodology created by S&P Indices, one of the world's leading index providers, TLV is designed to give investors exposure to the 50 stocks from the S&P/TSX Composite Index with the lowest realized volatility, or standard deviation, over the past 252 trading days, rebalanced on a quarterly basis.
"With a management fee of just 30 basis points, TLV provides investors with a simple and cost-effective way to gain exposure to a diversified portfolio of low-volatility Canadian equities," said Cooke. "As a core equity holding, Canadian investors are finding that low-volatility strategies can improve a portfolio's risk-return profile."
Meanwhile, THB is designed to give investors exposure to the 50 stocks in the S&P/TSX Composite Index with the highest beta (i.e., sensitivity to changes in market returns), while UHB provides exposure to the 100 stocks in the S&P 500 Index with the highest beta (for a complete breakdown of management fees and distribution frequency, see table below).
|PowerShares Suite of High-Beta/Low-Volatility ETFs|
|Ticker||Management Fee||Distribution frequency|
|PowerShares S&P/TSX Composite Low Volatility Index ETF||TLV||30 bps||Monthly|
|PowerShares S&P/TSX Composite High Beta Index ETF||THB||30 bps||Quarterly|
|PowerShares S&P 500 High Beta (CAD Hedged) Index ETF||UHB||35 bps||Quarterly|
|PowerShares S&P 500 Low Volatility (CAD Hedged) Index ETF||ULV||35 bps||Monthly|
TLV, THB and UHB have now closed the initial offering of their units and will be available for trading on TSX when the market opens today.
For more information on the growing roster of TSX-listed PowerShares ETFs, please visit www.powershares.ca.
Commissions, management fees and expenses may all be associated with investments in exchange-traded funds. Exchange-traded funds are not guaranteed, their values change frequently and past performance may not be repeated. Please read the prospectus before investing. Copies are available from Invesco at www.powershares.ca.
This piece was produced by Invesco Canada Ltd. Invesco and PowerShares Canada are registered business names of Invesco Canada Ltd.
There are risks involved with investing in ETFs, including the risk of error in replicating the underlying Index. Please read the prospectus for a complete description of risks relevant to the ETF. Ordinary brokerage commissions apply to purchases and sales of ETF units. ETFs are not diversified investments.
Each PowerShares ETF seeks to replicate, before fees and expenses, the performance of the applicable Index and is not actively managed. This means that the Sub-advisor will not attempt to take defensive positions in declining markets but rather continue to provide exposure to the securities in the Index regardless of whether the financial condition of one or more issuers of securities in the Index deteriorates.
Standard & Poor's® and S&P® are registered trademarks of Standard & Poor's Financial Services LLC (S&P) and have been licensed for use by Invesco Canada Ltd. The Fund is not sponsored, endorsed, sold or promoted by S&P or its affiliates, and S&P and its affiliates make no representation, warranty or condition regarding the advisability of buying, selling or holding units/shares in the Fund.
It is not possible to invest directly in an index. S&P Indices does not sponsor, endorse, sell, or promote any S&P index-based investment product. This document does not constitute an offer of services in jurisdictions where S&P Indices or its affiliates do not have the necessary licenses. S&P Indices receives compensation in connection with licensing its indices to third parties.
A subsidiary of Invesco Ltd., Invesco Canada offers a diversified suite of investment solutions to institutions, organizations, companies and individual investors across Canada and around the world. Invesco is a leading independent global investment manager, dedicated to helping investors worldwide achieve their financial objectives. By delivering the combined power of our distinctive investment management capabilities, Invesco provides a wide range of investment strategies and vehicles to our retail, institutional and high net worth clients around the world. Operating in more than 20 countries, the company is listed on the New York Stock Exchange under the symbol IVZ.
Invesco and all associated trademarks are trademarks of Invesco Holding Company Limited, used under licence. PowerShares® is a registered trademark of Invesco PowerShares Capital Management LLC (Invesco PowerShares).
Vice President, Corporate Affairs