Invesco Canada blog

Insights, commentary and investing expertise

‘Tis the season for tax-loss selling


December 5, 2018
Subject | ETFs | Invesco | Tax & Estate

As the year-end approaches, many investors with taxable accounts may be seeking to dispose of securities that have lost money. The strategy of tax-loss selling allows the investor to claim a capital loss, which offsets capital gains for the current year. Any unused net capital losses can then be applied against taxable capital gains in any of the three preceding years, or carried forward indefinitely to future years. To realize capital gains and losses in 2018, trades must be executed by Thursday, December 27 to ensure settlement by Monday, December 31, the last business day of 2018.

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Managing interest rate concerns


March 16, 2018
Subject | Smart beta

February’s increased volatility impacted both equities and fixed income, reminding all investors of the havoc that shifting interest rates can have on their portfolios. The correction occurred as U.S. bond yields headed higher, signaling a sell-off in the debt markets while also making equities less appealing.

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Supplementing bonds with quality dividends


November 24, 2017
Subject | ETFs

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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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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Looking to avoid the pitfalls of market-cap indexing?


November 8, 2016
Subject | ETFs | Smart beta

Investors tracking market-cap-weighted indices may be exposed to several flaws inherent to that approach. A rules-based Fundamental Index® approach focuses on the strength of the underlying business by looking at sales, cash flow, dividends and book value.

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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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Q&A: Are all low-volatility strategies the same?


August 31, 2016
Subject | ETFs | 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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Sell in May and go away? Maybe not


June 3, 2016
Subject | ETFs | Institutional | Smart beta

“Sell in May and go away” is a well-known market adage that warns investors to sell their equity holdings in May to avoid the typically volatile May-to-October period. Historically, stocks have underperformed in this six-month (“unfavourable”) period, compared to the six-month (“favourable”) period from November through April.

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ETF trading: A guide to best practices


January 16, 2016
Subject | ETFs | Smart beta

1. Use limit orders

Limit orders offer advantages over market orders because they provide certainty on the trade price and act as a guard against overpaying. A market order may be effective when placing small trades in highly liquid ETFs, but there is a risk that it could sweep indiscriminately through the order book, leading to an undesirable price. A limit order, however, sets the price at which you are willing to transact. The closer your price is to the bid or ask, the greater the probability that your sell or buy will be executed. The use of a limit order is not without risk, as your trade may not be executable at the specified price.

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