Invesco has listed two PowerShares ETFs on TSX today, the company’s first-ever ETF launch on a Canadian exchange.
“The arrival of PowerShares ETFs on TSX establishes an exciting new footprint in the Canadian marketplace, expanding the range of next-generation ETF solutions available to investors in Canada,” said Ben Fulton, Invesco PowerShares managing director of global ETFs.
The two ETFs that began trading today were PowerShares 1-5 Year Laddered Investment Grade Corporate Bond Index ETF (PSB) and PowerShares Ultra DLUX Long Term Government Bond Index ETF (PGL). Both distribute income monthly.
PSB seeks to replicate the performance of the DEX Investment Grade 1-5 Year Laddered Corporate Bond Index, which is comprised of Canadian investment-grade corporate bonds rated “BBB” or higher in the composite PC-Bond rating, and divided into five buckets with maturities staggered from one to five years.
PGL seeks to replicate the performance of the DEX Ultra DLUX Long Government Bond Index, a market-cap-weighted index consisting primarily of Canadian federal and provincial government and supranational entity bonds denominated in Canadian dollars with a remaining effective term to maturity of greater than 10 years and rated “A” or higher in the composite PC-Bond rating.
Invesco PowerShares is the world’s fourth-largest ETF provider with US$61 billion in sponsored assets (as at March 31, 2011).