PowerShares Canada Tuesday announced the listing of three new smart beta ETFs on the Toronto Stock Exchange (TSX). All three ETFs have now closed the initial offerings of units and will be available for trading on TSX when the market opens today.

The new ETFs each employ the FTSE RAFI Fundamental Index strategy, which selects and weights constituents in the index based on four fundamental measures of size: the five-year averages for sales, cash flow and dividends, as well as current book value.

“The strategy looks beyond the simplistic cap-weighted index to assess the true economic size of each company and weight it accordingly,” says Jamie Kingston, senior vice president, product management and development, Invesco Canada Ltd. “By breaking the link between price and portfolio weight, fundamental index strategies do not allow the market to dictate the weight a stock receives in an index.”

PowerShares FTSE RAFI Canadian Small-Mid Fundamental Index ETF (TSX:PZC) is the first Canada-listed fundamental index ETF to provide exposure to Canadian small- and mid-cap companies.

PZC seeks to replicate, before fees and expenses, the performance of the FTSE RAFI Canada Mid-Small Index. PZC invests, directly or indirectly, primarily in Canadian equity securities of small- and medium-sized companies.

The FTSE RAFI Canada Mid-Small Index is comprised of the constituents from the FTSE Canada All Cap Index that are not constituents of the FTSE RAFI Canada 100 Index.

PowerShares FTSE RAFI U.S. Fundamental Index ETF (TSX:PXS) seeks to replicate, before fees and expenses, the performance of the FTSE RAFI US 1000 Index. PXS invests, directly or indirectly, primarily in U.S. equity securities.

The FTSE RAFI US 1000 Index is comprised of the 1,000 U.S. companies with the largest fundamental value that are included in the FTSE US All Cap Index. This strategy is also available for purchase in U.S. dollars, listed on TSX as PXS.U.

PowerShares FTSE RAFI Global+ Fundamental Index ETF (TSX:PXG) seeks to replicate, before fees and expenses, the performance of the FTSE RAFI All World 3000 Index. PXG invests, directly or indirectly, primarily in companies with the highest fundamental weightings from across both developed and emerging markets globally.

The FTSE RAFI All World 3000 Index is comprised of 3,000 developed- and emerging-market companies with the largest fundamental value that are included in the FTSE Global All Cap Index. This strategy is also available for purchase in U.S. dollars, listed on TSX as PXG.U.

Toronto-based Invesco Canada Ltd. operates under three product brands: Trimark, Invesco and PowerShares.