Invesco Canada has announced the launch of the first low-volatility Canadian equity index ETF, PowerShares S&P/TSX Composite Low Volatility Index ETF, trading under the ticker “TLV”.
The new ETF is based on index methodology created by S&P Indices, and is designed to give investors exposure to the 50 stocks from the S&P/TSX Composite Index with the lowest realized volatility over the past 252 trading days. The index is rebalanced on a quarterly basis.
“With a management fee of just 30 basis points, TLV provides investors with a simple and cost-effective way to gain exposure to a diversified portfolio of low-volatility Canadian equities,” said Michael Cooke, Head of Distribution for PowerShares Canada. “As a core equity holding, Canadian investors are finding that low-volatility strategies can improve a portfolio’s risk-return profile.”
Earlier this year, the company introduced the PowerShares S&P 500 Low Volatility (CAD Hedged) Index ETF.
Also today, Invesco rolled out two more ETFs in its high beta category: PowerShares S&P/TSX Composite High Beta Index ETF (THB) and PowerShares S&P 500 High Beta (CAD Hedged) Index ETF (UHB).
THB provides exposure to the 50 stocks in the S&P/TSX Composite Index with the highest beta, with a management fee of 30 bps. UHB provides exposure to the 100 highest beta stocks in the S&P 500 Index, for a management fee of 35 bps.
“Be it a bull or bear market, PowerShares’ suite of high-beta/low-volatility ETFs now gives Canadian investors the tools needed to respond to changing market environments.”