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 and dividends.
"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 Affiliates, LLC.
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 (Invesco PowerShares).
For further information:
Vice President, Corporate Affairs