Invesco Canada blog

Insights, commentary and investing expertise

Supplementing bonds with quality dividends


November 24, 2017
Subject | ETFs | PowerShares

For income investors, the recent uptick in short-term interest rates served as a reminder that their bond portfolios remain vulnerable to risk. Rising interest rates tend to erode the value of a bond portfolio, leaving investors vulnerable to declines in portion of their portfolio which is supposed to be relatively safe.

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Volume does NOT equal liquidity. Here’s why


October 6, 2017
Subject | ETFs | PowerShares | 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 | PowerShares | 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 | PowerShares | 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 | PowerShares | 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 | PowerShares | 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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Do senior loans outperform when interest rates rise?

The search for yield continues, as events over the last eight years have pushed interest rates to record lows. Globally, many investors hunting for yield and lower duration in the income sleeve of their portfolio are shifting their attention to floating-rate solutions – such as senior secured bank loans – to help dampen the volatility that a rising-rate environment will bring.

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The election ends with a Trump victory: Now the real work starts

One of the most tumultuous and unprecedented presidential election campaigns in U.S. history is now over, with Donald Trump ultimately emerging as the winner and Republicans retaining their control over both the Senate and the House of Representatives. But while we know who won, we don’t yet know what policy changes will come to fruition once the hyperbole of the campaign trail gives way to the reality of governing.

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


October 12, 2016
Subject | ETFs | Institutional | PowerShares | 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 | PowerShares | 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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Q&A: Are all low-volatility strategies the same?


August 31, 2016
Subject | ETFs | PowerShares | Smart beta

As market volatility continues unabated, investors across the globe are seeking out tools, strategies and solutions to reduce their overall risk while still reaping the rewards that equity investing can provide. Low-volatility strategies have become valuable tools for many investors and advisors, but are all low-volatility strategies created equal?

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