For Canadians who expect a continuous stream of income from their investments, diversification beyond state bonds is the key.
Invesco is now offering these yield-hungry investors two income-focussed exchange traded funds (ETF).
Invesco rolled out PowerShares 1-10 Year Laddered Investment Grade Corporate Bond Index ETF and PowerShares S&P/TSX REIT Income Index ETF, listed on their respective exchanges as PIB and REIT.
The PIB ETF will track the performance of the FTSE TMX Canada Investment Grade 1-10 Year Laddered Corporate Bond Index and provides investors with the exposure to corporate bonds. On the other hand, the REIT ETF will follow the S&P/TSX Capped REIT Income Index.
PIB and REIT ETFs will have management fees of 0.25% and 0.45%, respectively.
PowerShares Canada vice president for product and business strategy Christopher Doll
said these two ETFs will be able to give better yields than their counterparts. They are also geared to provide monthly distributions.
"Monthly income is the primary investment goal for many investors. A diversified portfolio that includes both bonds and real estate securities can deliver the income they need, with the added benefit of growth potential," he stated.
Additionally, subscribing to these ETFs would allow for the diversification of the investors' portfolio.
Invesco opens alternative pool to individual investors