Invesco Canada announces changes to risk ratings on Canadian-listed ETFs

Rhea-AI Summary

On February 5, 2021, Invesco Canada announced immediate changes to the risk ratings of five Canadian-listed ETFs, aligned with the Canadian Securities Administrators' risk classification methodology. The affected ETFs include:

• Invesco Low Volatility Portfolio ETF (PLV): from Low to Low-Medium
• Invesco Canadian Preferred Share Index ETF (PPS): from Low-Medium to Medium
• Invesco FTSE RAFI Global Small-Mid ETF (PZW.U): from Medium to Medium-High
• Invesco LadderRite U.S. 0-5 Year Corporate Bond Index ETF (USB.U): from Low-Medium to Low
• Invesco Senior Loan Index ETF (BKL.U & BKL.F): from Low-Medium to Low

No alterations were made to the investment objectives or strategies of these ETFs.

Positive

• Risk ratings adjusted, potentially attracting a wider range of investors.
• No changes to investment objectives or strategies maintain investor trust.

Negative

• Increased risk rating for PPS and PZW.U may deter conservative investors.
• Medium-High risk rating for PZW.U increases uncertainty for risk-averse clients.

TORONTO, Feb. 5, 2021 /PRNewswire/ -- Invesco Canada Ltd. ("Invesco") today announced changes to the risk ratings applicable to five of its Canadian-listed exchange-traded funds (ETFs). The changes in risk ratings are effective immediately and detailed in the following table:

ETF name and series	Ticker symbol	Previous risk rating	New risk rating
Invesco Low Volatility Portfolio ETF – CAD Units	PLV	Low	Low to Medium
Invesco Canadian Preferred Share Index ETF – CAD Units	PPS	Low to Medium	Medium
Invesco FTSE RAFI Global Small-Mid ETF – USD Units	PZW.U	Medium	Medium to High
Invesco LadderRite U.S. 0-5 Year Corporate Bond Index ETF – USD Units	USB.U	Low to Medium	Low
Invesco Senior Loan Index ETF – USD Units	BKL.U	Low to Medium	Low
Invesco Senior Loan Index ETF – CAD Hedged Units	BKL.F	Low to Medium	Low

The risk rating changes were made in accordance with the risk classification methodology set by the Canadian Securities Administrators to determine the risk level of funds. No changes have been made to the investment objectives or strategies of these ETFs. A summary of the risk rating classification methodology, investment objectives and strategies of an ETF can be found in the ETF's most recently filed prospectus.

For more information, please visit invesco.ca. You can also connect with Invesco on Twitter (@InvescoCanada), LinkedIn, Facebook, or through the Invesco Canada blog.

About Invesco Ltd.
Invesco Ltd. (Ticker NYSE: IVZ) 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 25 countries, Invesco managed US$1.35 trillion in assets on behalf of clients worldwide as of December 31, 2020.  For more information, visit invesco.com.

Commissions, management fees and expenses may all be associated with investments in exchange-traded funds (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.

Some 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 ETF is actively managed, then the subadvisor has discretion to adjust that ETF's holdings in accordance with the ETF's investment objectives and strategies.

FTSE® is a trademark owned by the London Stock Exchange Group companies and is used by FTSE International Limited ("FTSE") under licence. The FTSE RAFI® Index Series is calculated by FTSE in conjunction with Research Affiliates LLC ("RA"). Neither FTSE nor RA sponsor, endorse or promote this product and are not in any way connected to it and do not accept any liability in relation to its issue, operation and trading. Any intellectual property rights in the Index values and constituent list vest in FTSE.

Nasdaq^®, OMX^®, and Nasdaq OMX^® are registered trademarks of The Nasdaq OMX Group, Inc. ("Nasdaq OMX") and LadderRite^® is a registered trademark of LadderRite Portfolios LLC ("LadderRite"). Nasdaq^®, OMX^®, Nasdaq OMX^® and LadderRite^® are collectively the "Marks". The Marks are used under licence to Invesco Capital Management LLC and Invesco Canada Ltd. The product(s) have not been passed on by Nasdaq OMX or LadderRite as to their legality or suitability. The product(s) are not issued, endorsed, sold, or promoted by Nasdaq OMX or LadderRite, and NASDAQ OMX AND LADDERRITE MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE PRODUCT(S).

S&P® is a registered trademark of Standard & Poor's Financial Services LLC and has been licensed for use by S&P Dow Jones Indices LLC and sublicensed for certain purposes by Invesco Canada Ltd. LSTA® is a registered trademark of Loan Syndications and Trading Association and has been licensed for use by S&P Dow Jones Indices LLC and Invesco Canada Ltd. The S&P/LSTA U.S. Leveraged Loan 100 Index is a product of S&P Dow Jones Indices LLC, and has been licensed for use by Invesco Canada Ltd. Invesco Canada Ltd.'s Invesco Senior Loan Index ETF is not sponsored, endorsed, sold or promoted by S&P Dow Jones Indices LLC or its affiliates or LSTA and none of S&P Dow Jones Indices LLC or its affiliates or LSTA make any representation regarding the advisability of investing in such product.

"Fundamental Index®" and/or "Research Affiliates Fundamental Index®" and/or "RAFI®" and/or all other RA trademarks, trade names, patented and patent-pending concepts are the exclusive property of Research Affiliates, LLC."

Invesco is a registered business name of Invesco Canada Ltd.

Invesco® and all associated trademarks are trademarks of Invesco Holding Company Limited, used under licence.

© Invesco Canada Ltd., 2021

Contact: Gina Simonis gina.simonis@Invesco.com 917-715-8339

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SOURCE Invesco Ltd.

FAQ

What changes did Invesco make to the risk ratings of ETFs on February 5, 2021?

Invesco adjusted the risk ratings of five ETFs, impacting their ratings from Low to Medium and Medium to Medium-High.

How do the new risk ratings affect Invesco's ETFs with ticker symbols PLV, PPS, and PZW.U?

PLV's rating changed from Low to Low-Medium; PPS from Low-Medium to Medium; PZW.U from Medium to Medium-High.

What is the significance of the risk rating changes announced by Invesco Canada?

The adjustments in risk ratings could influence investor behavior and portfolio allocations for the affected ETFs.

Will the investment strategies of the affected Invesco ETFs change after the risk rating updates?

No, the investment objectives and strategies of the ETFs remain unchanged despite the new risk ratings.

Where can I find more information about Invesco's ETF risk rating changes?

For detailed information, visit Invesco's official website or refer to the respective ETF prospectus.