UHD and GHD focus on U.S., foreign sources of
income
TORONTO, March 7, 2017 /CNW/ - Canadian investors are
increasingly seeking income from their holdings but they may be
concerned about the relatively limited opportunities within the
domestic equity market. Foreign equity markets may provide greater
diversification.
To help investors achieve their income goals, Invesco has
launched PowerShares S&P 500 High Dividend Low Volatility Index
ETF (UHD) and PowerShares S&P Global ex. Canada High Dividend
Low Volatility Index ETF (GHD). The initial offerings of units of
UHD and GHD have now closed. Units in these ETFs will be available
for trading on the NEO Exchange when the market opens today.
"For many investors, receiving a monthly dividend payment is
their primary investment goal," says Christopher Doll, Vice President, Product and
Business Strategy, PowerShares Canada.
UHD and GHD both provide a source of dividend income as well as
growth potential from stock-price appreciation. Historically,
dividends paid by companies have accounted for a significant
portion of the total return provided by equities over the long
term.
Both strategies invest in liquid, high-yielding equity
securities from within their investment universe. By screening for
dividend yield, the underlying indices are designed to provide a
higher yield than their broader market benchmarks.
Following the high dividend screen, the strategies use a
secondary screen for volatility, which is based on the standard
deviation of price returns over the previous one-year trading
period. "Screening by dividend payment alone can expose investors
to unwanted risk," says Doll. "The addition of a volatility screen
helps mitigate the risk that a company's dividend yield is due to
falling share value."
"S&P Dow Jones Indices continues to innovate in factor-based
indices," said Shaun Wurzbach,
Managing Director and Global Head of Financial Advisor Channel at
S&P Dow Jones Indices. "The S&P 500 Low Volatility High
Dividend Index and the S&P Global 1200 Ex-Canada Low Volatility
High Dividend Index selects lower volatility high-yielding stocks
of the S&P 500® and the S&P Global 1200 Ex-Canada Index,
respectively, serving as benchmarks for income-seeking
investors."
UHD and GHD will be available in the series illustrated in the
following table:
Name
|
Ticker symbol
(CAD units)
|
Ticker symbol
(CAD-hedged units)
|
Ticker symbol
(USD units)
|
PowerShares S&P
500 High Dividend
Low Volatility Index ETF
|
UHD
|
UHD.F
|
UHD.U
|
PowerShares S&P
Global ex. Canada High
Dividend Low Volatility Index ETF
|
GHD
|
GHD.F
|
N/A
|
UHD seeks to replicate, to the extent reasonably possible and
before fees and expenses, the performance of the S&P 500 Low
Volatility High Dividend Index, or any successor thereto.
GHD seeks to replicate, to the extent reasonably possible and
before fees and expenses, the performance of the S&P Global
1200 Ex-Canada Low Volatility High Dividend Index, or any successor
thereto.
For more information, please visit invesco.ca. You can
also connect with Invesco on Twitter (@InvescoCanada), LinkedIn,
Facebook or through the Invesco blog.
About Invesco Ltd.
Invesco is an independent
investment management firm dedicated to delivering an investment
experience that helps people get more out of life. NYSE: IVZ;
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
powershares.ca.
There are risks involved with investing in ETFs. 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.
Most PowerShares ETFs seek to replicate, before fees and
expenses, the performance of the applicable index, and are not
actively managed. This means that the sub-advisor will not
attempt to take defensive positions in declining markets and
the ETF will continue to provide exposure to each of the
securities in the index regardless of whether the financial
condition of one or more issuers of securities in the index
deteriorates. In contrast, if a PowerShares ETF is actively
managed, then the sub-advisor has discretion to adjust that
PowerShares ETF's holdings in accordance with the ETF's investment
objectives and strategies.
S&P®, S&P 500®, S&P 500
Low Volatility Index®, S&P 500® Low
Volatility High Dividend Index, and S&P Global 1200 Ex-Canada
Low Volatility Index ETF are registered trademarks of Standard
& Poor's Financial Services LLC and have been licensed for use
by S&P Dow Jones Indices LLC and sublicensed for certain
purposes by Invesco Canada Ltd.
The S&P/TSX Composite Low Volatility Index, S&P 500 Low
Volatility Index (CAD Hedged), S&P 500 Low Volatility High
Dividend Index, S&P Global 1200 Ex-Canada Low Volatility Index
ETF, S&P BMI International Developed Low Volatility Index,
S&P BMI Emerging Markets Low Volatility Index and S&P/LSTA
U.S. Leveraged Loan 100 Index (CAD Hedged) (the "Indices") are
products of S&P Dow Jones Indices LLC, and have been licensed
for use by Invesco Canada Ltd. Invesco Canada Ltd.'s PowerShares
Index ETFs are not sponsored, endorsed, sold or promoted by S&P
Dow Jones Indices LLC, its affiliates, LSTA, or TSX and none of
such parties make any representation regarding the advisability of
investing in such product.
PowerShares Canada and Invesco are registered business names of
Invesco Canada Ltd.
Invesco® and all associated trademarks are trademarks
of Invesco Holding Company Limited, used under licence.
PowerShares® and all associated trademarks are
trademarks of Invesco PowerShares Capital Management LLC (Invesco
PowerShares), used under licence.
© Invesco Canada Ltd., 2017
SOURCE Invesco Canada Ltd.