Invesco launches new Canadian investment-grade corporate bond ETF

By Sarah Lizee

Olympia, Wash., Sept. 12 – Invesco Ltd. announced the launch in Canada of the PowerShares 1-10 Year Laddered Investment Grade Corporate Bond Index ETF, according to a press release.

The fund is designed to provide a monthly distribution for investors. It seeks to replicate 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.

As a laddered portfolio, the corporate bond fund 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.

The fund is listed on the NEO Exchange as PIB. Units became available for trading on Tuesday.

The fund’s investment adviser is Toronto-based Invesco Canada Ltd., which is a subsidiary of Invesco.

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