PowerShares U.S. Low Volatility Index Fund provides investors with exposure to the S&P 500 ® Low Volatility Index (CAD Hedged) by investing primarily in securities of PowerShares S&P 500 Low Volatility (CAD Hedged) Index ETF (TSX: ULV).
Both underlying indices are provided by S&P Dow Jones Indices.
The S&P/TSX Composite Low Volatility Index is designed to measure the performance of the 50 least volatile stocks in the S&P/TSX Composite Index. Volatility is defined as the standard deviation of the security's daily price returns over the prior 252 trading days. Constituents are weighted relative to the inverse of their corresponding volatility, with the least volatile stocks receiving the highest weights.
The S&P 500
Low Volatility Index (CAD Hedged) is designed to replicate the returns of the S&P 500
Low Volatility Index (the "Underlying Index"), with all or substantially all of the direct U.S.-dollar exposure of the Underlying Index hedged back to the Canadian dollar. The Underlying Index is designed to measure the performance of the 100 least volatile stocks in the S&P 500
Index. Volatility is defined as the standard deviation of the security's daily price returns over the prior 252 trading days. Constituents are weighted relative to the inverse of their corresponding volatility, with the least volatile stocks receiving the highest weights. The Index hedges its beginning-of-period balances of its U.S.-dollar exposure back to the Canadian dollar by using rolling one-month forward contracts. Daily hedge returns are computed by interpolating between the spot price and the forward price.
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About Invesco Canada Ltd.
Invesco Canada Ltd., operating under three distinct yet complementary product brands (Trimark, Invesco and PowerShares), is one of
largest investment management companies. A subsidiary of Invesco Ltd., Invesco Canada's singular focus is on investment management, offering a diversified suite of investment solutions to institutions, organizations, companies and individual investors across
and around the world. Additional information is available at
About Invesco Ltd.
Invesco Ltd. is a leading independent global investment management firm, dedicated to helping investors worldwide achieve their financial objectives. By delivering the combined power of our distinctive investment management capabilities, Invesco provides a wide range of investment strategies and vehicles to our clients around the world. Operating in more than 20 countries, the firm is listed on the
Stock Exchange under the symbol IVZ. Additional information is available at
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