Invesco Canada Launches Nation’s First Senior Loan ETF; Yet Another First For Canadian Investors
In an effort to meet the growing investor demand for increased yield and protection against the threat of rising interest rates, Invesco Canada is proud to launch the latest addition to its innovative lineup of exchange-traded funds (ETFs): PowerShares Senior Loan (CAD Hedged) Index ETF [TSX: BKL].
Canada’s first senior loan ETF, Invesco Canada’s latest offering provides access to an asset class that has historically delivered higher yield than other fixed-income securities of equal or higher credit quality and provided investors with an added measure of security against borrower default. In addition, the low duration of senior loans may help to reduce a portfolio’s overall interest-rate sensitivity.
“With this new ETF, Invesco Canada is helping to open up an asset class that has traditionally been traded exclusively by institutional investors,” said Michael Cooke, Head of Distribution for PowerShares Canada. “Senior Loans are a great way for investors to diversify their fixed-income portfolios by offering low correlation to other fixed-income segments.”
This new ETF seeks to replicate (before fees and expenses) the performance of the S&P/LSTA (Loan Syndications and Trading Association) U.S. Leveraged Loan 100 Index (CAD Hedged). The index gives investors exposure to the largest 100 loan facilities drawn from a larger benchmark – the S&P/LSTA Leveraged Loan Index.
The ETF has now closed the initial offering of its units and will be available for trading on TSX when the market opens today. For more 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 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 retail, institutional and high net-worth 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.
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).
SOURCE Invesco Canada Ltd.