Invesco has launched PowerShares 1-10 Year Laddered Investment Grade Corporate Bond Index ETF (listed on NEO Exchange as “PIB”) and PowerShares S&P/TSX REIT Income Index ETF (listed on TSX as “REIT”). Both PIB and REIT are designed to provide a monthly distribution.
“Monthly income is the primary investment goal for many investors. A diversified portfolio that includes both bonds and real estate securities can deliver the income they need, with the added benefit of growth potential,” says Christopher Doll, vice president, product and business strategy, PowerShares Canada.
The initial offerings of PIB and REIT are now closed, and units in these ETFs will be available for trading when the markets open on Sept. 12.
PIB seeks to replicate, to the extent reasonably possible and before fees and expenses, the performance of the FTSE TMX Canada Investment Grade 1-10 Year Laddered Corporate Bond Index, or any successor thereto.
The portfolio provides exposure to corporate bonds, which generally provide a higher yield than government-issued bonds of similar maturity and credit quality. As a laddered portfolio, PIB helps manage reinvestment risk by spreading out bond maturities. The portfolio’s short-term bonds reduce interest-rate sensitivity while its medium-term holdings tend to provide higher yield.
REIT seeks to replicate, to the extent reasonably possible and before fees and expenses, the performance of the S&P/TSX Capped REIT Income Index, or any successor thereto.
The portfolio delivers exposure to Canadian REITs, which have historically provided higher yields than the broad equity market. It provides exposure to a cross-section of retail, residential, office and industrial REITs. This unique asset class offers the potential for both income and capital growth.
