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.
To learn more about PowerShares Canada's smart beta ETFs and
funds, visit www.powershares.ca, or connect with Invesco Canada on
Twitter (@InvescoCanada), LinkedIn or Facebook.
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