ETF based on successful Dorsey Wright relative strength model
TORONTO, March 31, 2016 /CNW/ - PowerShares Canada today celebrated the launch of PowerShares DWA Global Momentum Index ETF (DWG) on the Aequitas NEO Exchange ("the NEO Exchange"). It is the first exchange-traded fund (ETF) listed in Canada based on the relative strength model of Dorsey, Wright & Associates, LLC (DWA).
DWG has closed the initial offering of units and is available for trading on the NEO Exchange.
"We are very pleased to bring the highly sought-after Dorsey Wright relative strength methodology to Canada," says Chris Doll, Vice President, Product & Business Strategy, PowerShares Canada.
DWG seeks to replicate, to the extent reasonably possible and before fees and expenses, the performance of the Dorsey Wright® Global Technical Leaders Index (the "Index").
"Dorsey Wright is excited to continue its long-standing and valued relationship with the PowerShares brand with the launch of PowerShares DWA Global Momentum Index ETF," said Tammy DeRosier, President of Dorsey, Wright & Associates. "This strategy is unique in its ability to pivot within a universe of equity funds toward areas that exhibit strong relative strength. We, along with PowerShares, continue to focus on bringing products to market that seek to meet the needs of our clients."
The Index is comprised of up to four U.S.-listed PowerShares DWA Momentum portfolios targeting different segments of the global equity space, as well as a cash proxy (collectively, the "DWG-eligible securities"). These are:
- PowerShares DWA Momentum Portfolio (NYSE Arca: PDP)
- PowerShares DWA SmallCap Momentum Portfolio (NYSE Arca: DWAS)
- PowerShares DWA Developed Markets Momentum Portfolio (NYSE Arca: PIZ)
- PowerShares DWA Emerging Markets Momentum Portfolio (NYSE Arca: PIE)
- 25 U.S. Treasury bills ("T-bills") that comprise the Nasdaq US T-Bill V2 Index
The Index employs a matrix-based model that evaluates the relative strength of each eligible security, ranking them against one another on a weekly basis. The first-ranked ETF receives 50% weighting within the Index, with the remaining 50% divided equally among any ETFs that rank above U.S. T-bills.
If U.S. T-bills are ranked second in the matrix, the Index will allocate 50% to the first-ranked ETF and 50% to U.S. T-bills. If U.S. T-bills are ranked first in the matrix, the Index will allocate 100% to U.S. T-bills.
"This is the first momentum-based ETF in Canada with the tactical agility to take a more defensive position when global markets turn negative, as we saw at the beginning of 2016," says Doll.
DWG's effective management fee is variable. Depending on the ETF's portfolio allocation, the effective management fee, on an annualized basis, at any given time may range from 0.15% to 1.00%†
With the addition of DWG, PowerShares Canada's suite of ETFs now provides exposure to a wide range of investment factors, including fundamentals, low volatility, yield, small caps and now, momentum.
† The management fee for this ETF is in addition to the management fee charged by any PowerShares portfolios held by the ETF. The effective management fee paid by investors in the ETF may vary significantly from period to period depending on what securities are held by the ETF and the allocations thereto. Please see the prospectus for information about the management fees, other expenses and total annual fund operating expenses for the PowerShares portfolios that may be held by this ETF.
About Invesco Canada Ltd.
Invesco Canada Ltd., operating under three distinct yet complementary product brands (Trimark, Invesco and PowerShares), is one of Canada's leading investment management companies. A subsidiary of Invesco Ltd., Invesco Canada's singular focus is on investment management, offering a diversified suite of solutions to institutions, organizations, companies and individual investors across Canada and around the world. Additional information is available at www.invesco.ca.
About Invesco Ltd.
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 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.
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 www.powershares.ca.
Invesco Canada Ltd. ("Invesco") has obtained a license from Dorsey, Wright & Associates, LLC ("Dorsey Wright") for use of certain Dorsey Wright trademarks and the Dorsey Wright Global Technical Leaders Index (the "Index"). Such trademarks and Index have been developed by Dorsey Wright without regard to and independently of Invesco, this Product, and/or any prospective investor. A determination that any portion of an investor's portfolio should be devoted to any product developed by Invesco with reference to a Dorsey Wright index is a determination made solely by the investor, not Dorsey Wright or Invesco. The licensing of any index to Invesco is not an offer to purchase or sell, or a solicitation or an offer to buy any security.
Units/shares of PowerShares ETFs are not in any way sponsored, endorsed, sold or promoted by any of the ETFs' underlying index providers or their affiliates, and these companies make no representation or warranty, express or implied, as to the results to be obtained from the use of the Index. None of these companies is affiliated with Invesco Canada Ltd., Invesco PowerShares Capital Management LLC or Invesco Advisers, Inc., nor any of their affiliates. Index providers make no representation regarding the advisability of investing in these funds.
This piece was produced by Invesco Canada Ltd.
PowerShares Canada is a registered business name of Invesco Canada Ltd.
There are risks involved with investing in ETFs. Please read the prospectus for a complete description of risks relevant to the ETF.
* Invesco® and all associated trademarks are trademarks of Invesco Holding Company Limited, used under licence. PowerShares®, Leading the Intelligent ETF Revolution® and all associated trademarks are trademarks of Invesco PowerShares Capital Management LLC (Invesco PowerShares), used under licence.
© Invesco Canada Ltd., 2016
SOURCE PowerShares Canada
For further information: Aysha Mawani, Vice President, Corporate Affairs, Tel: 416.324.7712, [email protected]