PowerShares Canada has listed two new smart beta exchange-traded funds (ETFs) on the Toronto Stock Exchange (TSX).
Both have closed their initial offerings of units and are available for trading on TSX.
The new ETFs employ a low-volatility strategy to provide investors with access to the world’s equity markets.
“A low-volatility equity index does more than reduce risk. Historically it has resulted in higher long-term performance than cap-weighted indices,” says Michael Cooke, head of distribution, PowerShares Canada. “Income-oriented investors may also benefit from a low volatility strategy, because these have traditionally offered higher yields than the broader market.”
PowerShares S&P International Developed Low Volatility Index ETF (ILV) seeks to replicate, before fees and expenses, the performance of the S&P BMI International Developed Low Volatility Index. The index is designed to give investors exposure to the 200 stocks from the S&P Developed Ex. US & South Korea LargeMidCap Index with the lowest realised volatility over the past 252 trading days as of the most recent quarterly rebalancing. ILV is competitively priced with a management fee of 0.40 per cent.
PowerShares S&P Emerging Markets Low Volatility Index ETF (ELV) seeks to replicate, before fees and expenses, the performance of the S&P BMI Emerging Markets Low Volatility Index. The underlying index is designed to give investors exposure to the 200 stocks from the S&P Emerging Plus LargeMidCap Index with the lowest realised volatility over the past 252 trading days as of the most recent quarterly rebalancing. ELV offers investors access to the emerging markets at a management fee of 0.44 per cent.
