New ETFs provide investors with five different exposures to S&P Dividend Aristocrats Indexes designed to offer solid dividends with an ESG overlay
TORONTO, Feb. 23, 2023 /CNW/ — Invesco Canada Ltd. (“Invesco”) today announced the launch of five new exchange-traded funds (ETFs) that will provide exposure to equities with a history of consistent dividend growth, further screened with an Environmental, Social and Governance (ESG) overlay. The new index ETFs will track several S&P Dividend Aristocrat Indexes and include ESG-oversight from NEI Investments. The launch adds depth and breadth to Invesco’s defensive ETF strategies in Canada and provides additional ETF solutions to help clients achieve specific investment goals in the current market environment.
“Our expanded dividend ETF line-up aims to provide more choices to investors looking for access to higher risk-adjusted returns with an additional opportunity to buffer against market volatility. The new Invesco Dividend Aristocrats ETFs will also be the first products Invesco Canada offers with an ESG-tilt on a dividend income strategy,” said Pat Chiefalo, Senior Vice President, Head of ETFs & Index Strategies, Canada. “We will continue to create ETFs that employ the expertise of our industry partners to help clients build more resilient portfolios.”
Two of the five ETFs launching today, which are listed below, will include a series of CAD Hedged Units.
|Invesco S&P/TSX Canadian Dividend Aristocrats ESG Index ETF||ICAE|
|Invesco S&P US Dividend Aristocrats ESG Index ETF (CAD Units)||IUAE|
|Invesco S&P US Dividend Aristocrats ESG Index ETF (CAD Hedged Units)||IUAE.F|
|Invesco S&P International Developed Dividend Aristocrats ESG Index ETF (CAD Units)||IIAE|
|Invesco S&P International Developed Dividend Aristocrats ESG Index ETF (CAD Hedged Units)||IIAE.F|
The five ETFs launching today offer three distinct areas of exposure to dividend income.
The first strategy, offered through the Invesco S&P/TSX Canadian Dividend Aristocrats ESG Index ETF (ICAE), tracks the S&P/TSX Canadian ESG Dividend Aristocrats FMC Weighted Index. ICAE invests primarily in TSX-listed equities that have increased ordinary cash dividends in four of the past five years and not decreased ordinary cash dividends in any year, as well as meeting specific ESG criteria.
The second strategy, found in the Invesco S&P US Dividend Aristocrats ESG Index ETF (IUAE), tracks the S&P ESG High Yield Dividend Aristocrats FMC Weighted Index. IUAE, and the Canadian-hedged IUAE.F, invest primarily in US-listed equities that have increased total dividends per share every year for at least 20 consecutive years, while meeting certain ESG criteria.
The third strategy, accessed through the Invesco S&P International Developed Dividend Aristocrats ESG Index ETF (IIAE), tracks the S&P International Developed Ex-North America & Korea ESG Dividend Aristocrats FMC Weighted Index. IIAE, and the Canadian-hedged IIAE.F, will invest in securities of the highest dividend yielding companies in developed markets across Europe, the Middle East, Africa, and Asia Pacific that meet specific ESG-criteria, with a policy of increasing or maintaining dividends for at least 10 consecutive years.
“S&P Dow Jones Indices is very pleased that Invesco Canada has licensed its Dividend Aristocrat indices on the launch of their new funds. As a pioneer of dividend-based indices, S&P DJI continues to create innovative index-based, dividend-oriented solutions for our clients such as Invesco,” said Bruce Schachne, Chief Commercial Officer at S&P Dow Jones Indices. “These Indices incorporate dividend-based strategies which reflect the ongoing market sentiment and growing trend of what’s often viewed as a traditional barometer of companies’ financial health combined with sustainability considerations.”
“The launch of five new ESG-focused ETFs under the Invesco/NEI partnership is exciting news for Canadians who want to grow their individual wealth while aligning their investments with their values,” said Tim Prescott, SVP Asset Management at Aviso Wealth, and Head of NEI Investments. “We’re happy to grow this partnership and ensure investors and their advisors continue to benefit from the combined strengths of our two firms.”
The initial offering of the five ETFs included in the above table has now closed. Units in the ETFs will be available for trading on TSX when the market opens today.
About Invesco Ltd.
Invesco Ltd. is a global independent investment management firm dedicated to delivering an investment experience that helps people get more out of life. Our distinctive investment teams deliver a comprehensive range of active, passive and alternative investment capabilities. With offices in more than 20 countries, Invesco managed US$1.4 trillion in assets on behalf of clients worldwide as of December 31, 2022. For more information, visit www.invesco.com.
Commissions, management fees and expenses may all be associated with investments in ETFs. ETFs are not guaranteed, their values change frequently and past performance may not be repeated. Please read the prospectus before investing. Copies are available from Invesco Canada Ltd. at invesco.ca.
There are risks involved with investing in ETFs. Please read the prospectus for a complete description of risks relevant to the ETF. Ordinary brokerage commissions apply to purchases and sales of ETF units.
Most Invesco ETFs seek to replicate, before fees and expenses, the performance of the applicable index, and are not actively managed. This means that the sub-advisor will not attempt to take defensive positions in declining markets and the ETF will continue to provide exposure to each of the securities in the index regardless of whether the financial condition of one or more issuers of securities in the index deteriorates. In contrast, if an Invesco ETF is actively managed, then the sub-advisor has discretion to adjust that Invesco ETFs ETF’s holdings in accordance with the ETF’s investment objectives and strategies.
S&P/TSX Canadian ESG Dividend Aristocrats FMC Weighted Index, S&P ESG High Yield Dividend Aristocrats FMC Weighted Index and S&P International Developed Ex-North America & Korea ESG Dividend Aristocrats FMC Weighted Index (the “S&P Dow Jones Indices”) are products of S&P Dow Jones Indices LLC or its affiliates (“SPDJI”), and have been licensed for use by Invesco Capital and its sublicensees (collectively, the “Licensees”). S&P® and Dividend Aristocrats® are registered trademarks of S&P Global or its affiliates (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); TSX® is a trademark of TSX Inc. (“TSX”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by the Licensees. The ETFs are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, TSX or their respective affiliates, and none of such parties make any representation regarding the advisability of investing in such product nor do they have any liability for any errors, omissions, or interruptions of the S&P Dow Jones Indices.
NEI Investments is not affiliated with Invesco and will serve as a non-exclusive sub-advisor only on Invesco ESG Index ETFs in Canada.
Invesco® and all associated trademarks are trademarks of Invesco Holding Company Limited, used under licence.
Invesco is a registered business name of Invesco Canada Ltd.
© Invesco Canada Ltd. 2023
Contact: Stephanie Diiorio, firstname.lastname@example.org 212.278.9037
SOURCE Invesco Ltd.