Invesco Canada blog

Insights, commentary and investing expertise

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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