Invesco launches high-dividend, low-volatility ETFs

UHD and GHD focus on U.S., foreign sources of income

TORONTO, March 7, 2017 /CNW/ - Canadian investors are increasingly seeking income from their holdings but they may be concerned about the relatively limited opportunities within the domestic equity market. Foreign equity markets may provide greater diversification.

To help investors achieve their income goals, Invesco has launched PowerShares S&P 500 High Dividend Low Volatility Index ETF (UHD) and PowerShares S&P Global ex. Canada High Dividend Low Volatility Index ETF (GHD). The initial offerings of units of UHD and GHD have now closed. Units in these ETFs will be available for trading on the NEO Exchange when the market opens today.

"For many investors, receiving a monthly dividend payment is their primary investment goal," says Christopher Doll, Vice President, Product and Business Strategy, PowerShares Canada.

UHD and GHD both provide a source of dividend income as well as growth potential from stock-price appreciation. Historically, dividends paid by companies have accounted for a significant portion of the total return provided by equities over the long term.

Both strategies invest in liquid, high-yielding equity securities from within their investment universe. By screening for dividend yield, the underlying indices are designed to provide a higher yield than their broader market benchmarks.

Following the high dividend screen, the strategies use a secondary screen for volatility, which is based on the standard deviation of price returns over the previous one-year trading period. "Screening by dividend payment alone can expose investors to unwanted risk," says Doll. "The addition of a volatility screen helps mitigate the risk that a company's dividend yield is due to falling share value."

"S&P Dow Jones Indices continues to innovate in factor-based indices," said Shaun Wurzbach, Managing Director and Global Head of Financial Advisor Channel at S&P Dow Jones Indices. "The S&P 500 Low Volatility High Dividend Index and the S&P Global 1200 Ex-Canada Low Volatility High Dividend Index selects lower volatility high-yielding stocks of the S&P 500® and the S&P Global 1200 Ex-Canada Index, respectively, serving as benchmarks for income-seeking investors." 

UHD and GHD will be available in the series illustrated in the following table:

Name

Ticker symbol
(CAD units)

Ticker symbol
(CAD-hedged units)

Ticker symbol
(USD units)

PowerShares S&P 500 High Dividend
Low Volatility Index ETF

UHD

UHD.F

UHD.U

PowerShares S&P Global ex. Canada High
Dividend Low Volatility Index ETF

GHD

GHD.F

N/A

 

UHD seeks to replicate, to the extent reasonably possible and before fees and expenses, the performance of the S&P 500 Low Volatility High Dividend Index, or any successor thereto.

GHD seeks to replicate, to the extent reasonably possible and before fees and expenses, the performance of the S&P Global 1200 Ex-Canada Low Volatility High Dividend Index, or any successor thereto.

For more information, please visit invesco.ca. You can also connect with Invesco on Twitter (@InvescoCanada), LinkedIn, Facebook or through the Invesco blog.

About Invesco Ltd.
Invesco is an independent investment management firm dedicated to delivering an investment experience that helps people get more out of life. NYSE: IVZ; invesco.com.

Commissions, management fees and expenses may all be associated with investments in exchange-traded funds (ETFs). ETFs 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 Canada Ltd. at powershares.ca.

There are risks involved with investing in ETFs. 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.

Most PowerShares ETFs seek to replicate, before fees and expenses, the performance of the applicable index, and are not actively managed. This means that the sub-advisor will not attempt to take defensive positions in declining markets and the ETF will continue to provide exposure to each of the securities in the index regardless of whether the financial condition of one or more issuers of securities in the index deteriorates. In contrast, if a PowerShares ETF is actively managed, then the sub-advisor has discretion to adjust that PowerShares ETF's holdings in accordance with the ETF's investment objectives and strategies.

S&P®, S&P 500®, S&P 500 Low Volatility Index®, S&P 500® Low Volatility High Dividend Index, and S&P Global 1200 Ex-Canada Low Volatility Index ETF are registered trademarks of Standard & Poor's Financial Services LLC and have been licensed for use by S&P Dow Jones Indices LLC and sublicensed for certain purposes by Invesco Canada Ltd.

The S&P/TSX Composite Low Volatility Index, S&P 500 Low Volatility Index (CAD Hedged), S&P 500 Low Volatility High Dividend Index, S&P Global 1200 Ex-Canada Low Volatility Index ETF, S&P BMI International Developed Low Volatility Index, S&P BMI Emerging Markets Low Volatility Index and S&P/LSTA U.S. Leveraged Loan 100 Index (CAD Hedged) (the "Indices") are products of S&P Dow Jones Indices LLC, and have been licensed for use by Invesco Canada Ltd. Invesco Canada Ltd.'s PowerShares Index ETFs are not sponsored, endorsed, sold or promoted by S&P Dow Jones Indices LLC, its affiliates, LSTA, or TSX and none of such parties make any representation regarding the advisability of investing in such product.

PowerShares Canada and Invesco are registered business names of Invesco Canada Ltd.

Invesco® and all associated trademarks are trademarks of Invesco Holding Company Limited, used under licence. PowerShares® and all associated trademarks are trademarks of Invesco PowerShares Capital Management LLC (Invesco PowerShares), used under licence.

© Invesco Canada Ltd., 2017

SOURCE Invesco Canada Ltd.

For further information: Aysha Mawani, Vice President, Corporate Affairs, Tel: 416.324.7712, aysha.mawani@invesco.com

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