TORONTO, Jan. 24, 2012 /CNW/ - With yet another PowerShares first,
Invesco Canada Ltd. today announced the listing of Canada's first and
only low-volatility index-based exchange-traded fund (ETF), PowerShares
S&P 500 Low Volatility (CAD Hedged) Index ETF [TSX: ULV]. This ETF has
now closed the initial offering of its units and will be available for
trading on TSX when the market opens today.
Using a transparent index methodology created by S&P Indices, one of the
world's leading index providers, PowerShares S&P 500 Low Volatility
(CAD Hedged) Index ETF is designed to give investors exposure to the
100 stocks from the S&P 500® Index with the lowest realized volatility over the past 252 trading
days, rebalanced on a quarterly basis. To provide this exposure, the
ETF invests in units of U.S.-listed PowerShares S&P 500 Low Volatility
"For those concerned about continued volatility in 2012 and beyond, this
Index ETF, with a management fee of just 35 basis points, provides
investors with a simple and cost-effective way to gain exposure to a
diversified portfolio of low-volatility equities," said Michael Cooke,
Head of Distribution for PowerShares Canada. "While investors have
generally equated low volatility with low returns, many are realizing
that strategies designed to reduce exposure to volatility can have a
better risk-return profile relative to strategies that provide exposure
to traditional indices."
Research by S&P Indices recently found that the S&P 500 Low Volatility
Index exhibited 24% less volatility over a 20-year period than the S&P
5001. Even with this favourable outcome of lower volatility, the S&P 500 Low
Volatility Index still outperformed the S&P 500 Index by a full 200
basis points over a 20-year stretch.
For more information on PowerShares S&P 500 Low Volatility (CAD Hedged)
Index ETF and other PowerShares TSX-listed 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 Ltd.
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 Ltd. 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.
Additional information is available at www.invesco.com.
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
1 Source: S&P Indices. "S&P 500 Low Volatility Index: Low and Slow Could
Win the Race," S&P Indices, September 2011. Past performance not
indicative of future results. Hypothetical historical data, as at
September 30, 2011.
SOURCE Invesco Canada Ltd.
For further information:
Vice President, Corporate Affairs