TORONTO, Jan. 26, 2012 /CNW/ - Invesco Canada Ltd. is pleased to bring
Canadian investors two new ETFs using the RAFI methodology at the
lowest price point available in Canada. The addition of the PowerShares
FTSE RAFI Canadian Fundamental Index ETF [TSX: PXC] and PowerShares
FTSE RAFI US Fundamental (CAD Hedged) Index ETF [TSX: PXU] further
strengthens PowerShares Canada's growing ETF lineup. These ETFs have
now closed the initial offering of their units and will be available
for trading on TSX when the market opens today.
"We're pleased to be able to offer ETFs using the RAFI methodology to
the Canadian marketplace," said Michael Cooke, Head of Distribution for
PowerShares Canada. "PowerShares globally is the largest provider of
product based on RAFI's unique and proven investment methodology."
The new PowerShares ETFs are based on the FTSE RAFI® family of fundamental indices, which use a weighting structure based on
four fundamental measures of company size: sales, cash flow, book value
"Unlike traditional cap-weighted indices, the RAFI methodology breaks
the link with market price and helps reduce investor exposure to market
imbalances, like the 'tech bubble' of 2000," Cooke said.
The PowerShares FTSE RAFI Canadian Fundamental Index ETF (PXC), with an
annualized management fee of only 45 bps, seeks to replicate (before
fees and expenses) the performance of the FTSE RAFI® Canada Index and gives investors exposure to all Canadian equities in
the FTSE RAFI® Developed ex US 1000 Index, a fundamentally weighted index.
The PowerShares FTSE RAFI US Fundamental (CAD Hedged) Index ETF (PXU),
with a management fee of just 60 bps, less a 5-bp management fee waiver
until at least August 31, 2012,* seeks to replicate (before fees and expenses) the performance of the
FTSE RAFI® US 1000 Index (Canadian Hedged), and the ETF provides investors
exposure to the 1,000 U.S. equities with the largest fundamental value
by investing in securities of the PowerShares FTSE RAFI US 1000
Portfolio. *[This results in an annualized net management fee of 55bps during the
period of the management fee waiver.]
For more information on PowerShares' new FTSE RAFI-based ETFs (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.
"FTSE®" is a trademark of the London Stock Exchange Group companies and is
used by FTSE under licence.
The FTSE RAFI® Index Series is calculated by FTSE International Limited ("FTSE") in
conjunction with Research Affiliates LLC ("RA"). Neither FTSE nor RA
sponsor, endorse or promote this product and are not in any way
connected to it and do not accept any liability in relation to its
issue, operation and trading.
"Fundamental Index®" and/or "Research Affiliates Fundamental Index®" and/or "RAFI" and/or all other RA trademarks, trade names, patented
and patent-pending concepts are the exclusive property of Research
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 management firm, 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 firm 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
SOURCE Invesco Canada Ltd.
For further information:
Vice President, Corporate Affairs