Toronto-based Invesco Ltd. on Tuesday announced the launch of PowerShares 1-10 Year Laddered Investment Grade Corporate Bond Index ETF (PIB) and PowerShares S&P/TSX REIT Income Index ETF (REIT).
Both NEO Exchange-listed PIB and Toronto Stock Exchange-listed 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, in a statement.
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.
The portfolio provides exposure to corporate bonds, which generally provide a higher yield than government-issued bonds of similar maturity and credit quality. Its 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,.
The portfolio delivers exposure to to a cross-section of Canadina retail, residential, office and industrial
real estate investment trusts.
Management fees fro PIB and REIT are 0.25% and 0.45%, respectively.
The initial offerings of the two ETFs are now closed, and their units began trading today.