Invesco Canada has announced the listing of Canada’s first and only low-volatility index-based ETF, PowerShares S&P 500 Low Volatility (CAD Hedged) Index ETF.

The ETF is designed to give investors exposure to the 100 stocks from the S&P 500 Index with the lowest realized volatility over the past 252 trading days, rebalanced on a quarterly basis. To provide this exposure, the ETF invests in units of U.S.-listed PowerShares S&P 500 Low Volatility Portfolio.

There is a spread of 10 basis points between the Canadian ETF (0.35%) and the U.S.-listed version (0.25%), which covers the cost of currency hedging.

“While investors have generally equated low volatility with low returns, many are realizing that strategies designed to reduce exposure to volatility can have a better risk-return profile relative to strategies that provide exposure to traditional indices,” said Michael Cooke, head of distribution for PowerShares Canada.