Invesco PowerShares has announced the launch of PowerShares Global Buyback Achievers Ucits ETF listed on the London Stock exchange with immediate effect.
The Buyback ETF invests in companies that have bought back at least 5% of their own shares in the past twelve months. The ETF tracks the NASDAQ Global Buyback Achievers Net Total Return Index and the NASDAQ International BuyBack Achievers™ Index via a full physical replication.
Bryon Lake, head of Invesco PowerShares – EMEA, stated: “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.”
According to Invesco, the fund’s strategy is based on the consideration that buyback programmes often result in higher price/sales, price/earnings and price/cash flow ratios for the stock, and that they can trigger higher share prices.
The ETF is planned to be listed at Borsa Italiana on 24 November, Euronext Paris on 12 November, Deutsche Börse Xetra on 24 November and the SIX Swiss Exchange in December.