PowerShares Canada to roll out new currency classes for DWA Global Momentum ETF

Feb 8th, 2017 | By | Category: Equities

Invesco Canada is lining up a series of ETF launches on Aequitas NEO Exchange, having received approval from regulators to list two new series of its PowerShares DWA Global Momentum Index ETF (DWG).

PowerShares Canada to roll out new currency classes for DWA Global Momentum ETF

Canadian investors will have the ability to purchase the PowerShares DWA Global Momentum Index ETF in US dollars or in a Canadian-dollar-hedged version.

Invesco was the first company to list securities on NEO when they launched DWG tradable in Canadian dollars.

The new series will provide investors with the ability to purchase DWG in US dollars (DWG.U) or in a Canadian-dollar-hedged version (DWG.F). The new series is expected to begin trading in the coming weeks.

The premise of the PDWA ETF range is that well-performing equities will continue to perform and its strategy works by attempting to identify those firms with the strongest indications of relative strength. The methodology compares the price momentum of every firm, sector, or country against that of every other within the fund’s investable universe, assigning a buy signal to the stronger of each pair. All potential constituents are ranked in descending order according to their number of buy signals. The best ranked constituents are chosen for inclusion based on the fund’s minimum threshold for diversification.

Commenting on the launch, Christopher Doll, Vice President, Product and Business Strategy, PowerShares Canada, said: “We have seen first-hand that NEO offers enhanced transparency and a choice in service models that benefit Canadian investors. Our decision to apply to list additional ETFs on NEO was driven by the efficiencies, quality of service and cost reductions that NEO has provided to the Canadian ETF industry. We look forward to strengthening our listing partnership in 2017.”

“Invesco has been a true partner in helping us bring competition, innovation and a different set of values to the Canadian stock exchange space,” added Jos Schmitt, President and Chief Executive Officer, NEO Exchange. “We are pleased they have decided to launch new ETFs with us and expand the currently listed DWG family. Invesco was a trailblazer in welcoming competition to the ETF trading landscape and has led the way for other fund providers to do the same.”

The firm has also filed preliminary prospectuses with the securities regulatory authorities in each of the provinces and territories of Canada in a bid to roll out the PowerShares S&P 500 High Dividend Low Volatility Index ETF (UHD) and the PowerShares S&P Global ex. Canada High Dividend Low Volatility Index ETF (GHD). Subject to receiving regulatory and NEO Exchange approval, the ETFs are expected to launch during the first half of 2017.

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