Invesco Canada blog

Insights, commentary and investing expertise

ETF trading: Keep an eye on volatility


February 1, 2018
Subject | ETFs | Smart beta

Our goal on the PowerShares ETF Capital Markets trading desk is to help our clients experience smooth and efficient ETF trades. In this blog series, I’m highlighting some of the most common guidance we provide. Today, I’m going to look at volatility – how it can distort the bid-ask spread, what to look for and how to get help.

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ETF trading: Get the right price


January 8, 2018
Subject | ETFs | Smart beta

It’s often said that exchange-traded funds (ETFs) “trade just like a stock”, but there are a few differences that can make buying and selling ETFs a little tricky, even for experienced investors. Here at Invesco, our PowerShares ETF Capital Markets help desk fields daily questions from advisors and institutional investors about how to trade ETFs more efficiently. I’ve compiled a few of the most common suggestions from those calls into a series of four blog posts.

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Volume does NOT equal liquidity. Here’s why


October 6, 2017
Subject | ETFs | Smart beta

Despite explosive growth in the use of exchange-traded funds (ETFs) in the last decade, a few persistent myths about them remain. On our ETF capital markets desk, for example, we often hear from advisors with liquidity concerns. The idea that volume equals liquidity persists among many investors, and advisors get a lot of questions about this from their clients. Let’s dispel this myth by looking a little deeper at the role of the market maker in ETF trading.

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Are smart beta ETFs skewing stock valuations?


July 28, 2017
Subject | ETFs | Smart beta

Thanks in large part to the popularity of smart beta and factor-based strategies, adoption of exchange-traded funds (ETFs) has grown rapidly in recent years. Some have even speculated that the growth of ETFs is skewing the valuations of certain stocks. I do not believe that is the case. Below, I explain why.

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Looking beyond the active-passive debate

Recently, one of Invesco’s funds – Trimark International Companies Fund – was singled out for praise as an example that true active management can outperform. While the kudos were well-deserved for the team, it appeared as part of a commentary that was otherwise unsympathetic to active management.

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Avoiding the equity income “dividend trap”


March 17, 2017
Subject | ETFs | Smart beta

Income-oriented stocks can provide investors with numerous advantages – including the potential for high, recurring income, a possible inflation hedge and added portfolio diversification. And while diversification does not ensure a profit or protect against loss, dividend stocks can serve as a significant source of investment returns. In fact, over the past two decades, dividends have contributed more than 40% to S&P 500 Index investors’ total returns.1

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Can investors have strong monthly dividend income with less volatility?


March 9, 2017
Subject | ETFs | Smart beta

Income can be tough to find in today’s market. And for many investors, a monthly dividend payment is their primary investment goal. With domestic opportunities offering fewer diversification benefits, many investors are looking beyond the local markets for dividend income with greater diversification.

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Q&A: What is factor investing?


February 28, 2017
Subject | ETFs | Smart beta

Factor investing has attracted a lot of attention from investors and media recently, but its roots can be traced back to the 1960s. As innovators in the factor-investing space, we believe in pushing the boundaries of portfolio construction with factor-based methodologies that go beyond traditional indices, allowing investors to target specific risk/return objectives with more precise portfolio-building tools.

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Outlook 2017: Factor investing in the coming year

Although it may sound like a well-worn cliché, we are at a critical juncture as 2017 approaches. Two important tests of voter sentiment – the U.S. general elections and the U.K.’s referendum (Brexit) to leave the European Union (EU) – have occurred in less than six months’ time, and the ramifications could prove profound. Although the U.S. is now in the seventh year of an economic expansion, the current recovery is among the slowest on record and has been subject to bouts of market volatility that have buffeted the financial markets and tested investors’ resolve.

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Q&A: How are Canadian advisors using low volatility in portfolios?


October 12, 2016
Subject | ETFs | Institutional | Smart beta

We hosted two experts from S&P Dow Jones Indices for an in-depth conversation about low-volatility as an investment factor. In this final installment of the interview, we discuss different advisor views on low volatility, how it pairs with other factors and how it can be used in portfolios.

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How has the low-volatility factor performed in recent markets – and why?


September 28, 2016
Subject | ETFs | Smart beta

Late summer has not been fruitful for the low-volatility factor. From July 6 to September 9, the S&P 500 Low Volatility Index has fallen by 4.67%, while the S&P 500 Index gained 1.70%.1 This is in sharp contrast to the second quarter, when the low-volatility index returned 6.75%, and the broad-market index returned 2.46%.1 Naturally, some investors are wondering what’s behind the shift.

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