Nasdaq today announced that the Nasdaq Global Buyback Achievers™ Index is serving as the basis for Invesco PowerShares' most recent ETF launch – the PowerShares Global Buyback Achievers UCITS ETF (symbol: BUYB). This marks the first product, which is based on the successful Nasdaq Buyback Achiever Index family to launch in the UK and Europe.
"Smart Beta indices, and products linked to them, have provided more opportunities for investors to manage risk and diversify their portfolios," said Rob Hughes, head of Index Services at Nasdaq. "The Buyback concept has proven successful in identifying companies that have - through the use of share buybacks - delivered increased shareholder value and outperformance over the broader market."
The launch is the latest example of continued innovation around the Nasdaq Buyback Achievers family. In May, Invesco PowerShares launched the international version of this Index as an ETF in the US, the PowerShares Nasdaq International Buyback Achievers Index ETF (symbol: IPKW).
Bryon Lake, Head of Invesco PowerShares – EMEA, added, "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."
The Nasdaq Global Buyback Achievers Index is comprised of securities from the Nasdaq US Buyback Achievers Index and the Nasdaq International BuyBack Achievers Index. The Nasdaq US Buyback Achievers Index is comprised of corporations that have effected a net reduction in shares outstanding of 5% or more in the trailing twelve months and the Nasdaq International BuyBack Achievers Index is comprised of corporations that have effected a net reduction in shares outstanding of 5% or more in its latest fiscal year. The Index began on August 11, 2014 at a base value of 1,000.00.