Invesco PowerShares is to launch a new exchange-traded fund (ETF), the PowerShares LadderRite 0-5 Year Corporate Bond Portfolio (LDRI), which will be listed on The Nasdaq Stock Market.
LDRI will begin trading on Nasdaq on 10 September 2014.
“We are excited to partner with the Nasdaq OMX to expand our smart beta fixed income family with an equal weighted annual maturity ladder strategy,” says Lorraine Wang, Invesco PowerShares global head of ETF products and research. “Investors looking to preserve capital and generate income in an uncertain interest rate environment may want to consider LDRI as a possible solution given its short-term nature and laddering approach.”
LDRI seeks to track the Nasdaq LadderRite 0-5 Year USD Corporate Bond Index, which is comprised of investment-grade corporate bonds with maturities of five years or less. The LadderRite index uses a rules-based index methodology that has the potential to reduce turnover and transaction costs and provide a more efficient means of managing interest rate volatility while maintaining a consistent maturity profile.
“We are thrilled to list another innovative PowerShares exchange-traded product on Nasdaq,” says Walt Smith, vice president, head of US equities and group revenue management at Nasdaq OMX. “We value our partnership with Invesco PowerShares and will continue to offer our support as they expand their robust product offering and grow their footprint into new markets across the globe.”
