Invesco Powershares Launches Buyback ETF

Stephen Little

30 November -0001

, part of Invesco, has launched a new buyback European UCITs exchange-traded fund.

The London-listed PowerShares Global Buyback Achievers UCITS ETF invests in companies that have bought back at least 5 per cent of their own shares in the previous twelve months, reducing the number of shares outstanding.

The ETF tracks via full physical replication the NASDAQ Global Buyback Achievers Net Total Return Index, which is comprised of securities from the NASDAQ US Buyback Achiever Index and the NASDAQ International BuyBack Achievers Index.

“This new product offers an innovative yet simple factor-based way to invest in global equities. Through the underlying index, the PowerShares Global Buyback Achievers UCITS ETF provides access to a “smart beta” approach to investing in companies that return value by buying back shares. Buybacks can be more tax efficient than dividends, and this new ETF offers a low-cost, transparent and liquid vehicle through which to access this strategy,” said Bryon Lake, head of Invesco PowerShares – EMEA.

PowerShares Global Buyback Achievers UCITS ETF is also planned to be listed across a number of exchanges, including the Borsa Italiana, Euronext Paris, Deutsche Börse XETRA. the SIX Swiss Exchange.