Invesco announced Feb. 28 the launch of PowerShares 1-5 Year Laddered All Government Bond Index ETF (PGB). This Canadian fixed income exchange-traded fund is focused on enhanced yield.
PGB, which trades on the Aequitas NEO Exchange, selects investment grade government bonds that offer a higher yield than traditional federal non-agency government issues, including agency, provincial and municipal, says Invesco.
Rising interest rate environment
"A rising rate environment can be challenging for investors – while yields may rise, the value of longer-term government bonds may fall," says Christopher Doll, Vice President, Sales and Strategy, PowerShares Canada. "Shorter-term investment grade bonds tend to provide a measure of stability to a fixed income portfolio."
PGB seeks to replicate, to the extent reasonably possible and before fees and expenses, the performance of the FTSE TMX Canada 1-5 Year All Government Laddered Bond Index. It has a management fee of 0.15 per cent.