Invesco has announced the launch of two new income-focused exchange traded funds (ETFs): PowerShares 1-10 Year Laddered Investment Grade Corporate Bond Index ETF (listed on NEO Exchange as "PIB") and PowerShares S&P/TSX REIT Income Index ETF (listed on the TSX as REIT). The ETFs are designed to provide a monthly distribution.
"Monthly income is the primary investment goal for many investors,” stated Christopher Doll, vice president, Product and Business Strategy, PowerShares Canada in a Sept. 12 announcement. “A diversified portfolio that includes both bonds and real estate securities can deliver the income they need, with the added benefit of growth potential.”
Corporate bond exposure
The PIB portfolio provides exposure to corporate bonds, which generally provide a higher yield than government-issued bonds of similar maturity and credit quality, says Invesco.
The REIT portfolio offers exposure to Canadian real estate investment trusts (REITs) which historically have provided higher yields than the broad equity market.
The PIB and REIT have management fees of 0.25 per cent and 0.45 per cent respectively.