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 Portfolio.
"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 (Invesco PowerShares).
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.
For further information:
Vice President, Corporate Affairs