PowerShares Canada has listed two new smart beta exchange-traded funds (ETFs) on the Toronto Stock Exchange (TSX).
Both have now closed the initial offerings of units and are available for trading on TSX.
“As an innovator in the Canadian ETF market, PowerShares Canada recognizes the value of smart beta investment strategies,” says Michael Cooke, head of distribution, PowerShares Canada. “Our new additions provide investors with intelligent access to short-term fixed income investments.”
PowerShares 1-3 Year Laddered Floating Rate Note Index ETF (PFL) seeks to replicate, before fees and expenses, the performance of the FTSE TMX Canada 1-3 Year Laddered Floating Rate Note Index. The index is designed to give investors exposure to a laddered basket of Canadian government and corporate investment-grade floating-rate notes. PFL has a management fee of 0.20 per cent.
PowerShares LadderRite US 0-5 Year Corporate Bond Index ETF (USB/USB.U) seeks to replicate, before fees and expenses, the performance of the NASDAQ LadderRite 0-5 Year USD Corporate Bond Index. The index is designed to give investors exposure to a laddered basket of US-dollar-denominated, investment-grade corporate bonds. USB has a management fee of 0.25 per cent. The ticker symbol “USB” represents Canadian-dollar-denominated units, while “USB.U” represents US-dollar-denominated units.
“The low interest rates paid on government bonds makes short-term US corporate debt and floating-rate notes quite attractive to investors seeking yield,” Cooke says. “Both the laddering structure and the short duration of the underlying securities help reduce interest-rate sensitivity.”
