The PowerShares Financial Preferred Portfolio (Fund) is based on the Wachovia Hybrid & Preferred Securities Financial Index (WHPSsm Financial Index) (Index). The Fund will normally invest at least 90% of its total assets in preferred securities that comprise the Index. The Index tracks the performance of U.S. listed preferred stocks of preferred stocks issued in the US market by financial institutions and currently includes approximately 30 securities selected by Wachovia pursuant to a proprietary selection methodology. The market-cap weighted Index is rebalanced monthly. |
 |
Date |
|
11/19/2009 |
|
|
Price |
|
15.72 |
|
|
Bid/Ask Midpoint |
|
15.69 |
|
| |
|
NAV |
|
15.67 |
|
|
Bid/Ask Prem/Disc  |
|
0.02 |
|
|
Bid/Ask Prem/Disc |
|
0.11% |
|
|
|
|
|
|
| As of 9/30/2009 |
| Index History (%) | 1 Year | 3 Year | 5 Year | 10 Year | Fund Inceptiona |
| WHPS Financial Index | 36.72 | | | | -6.63 |
| S&P Preferred Index | 51.80 | | | | -3.51 |
| S&P 500 Index | -6.91 | | | | -7.42 |
|
| Fund History (%) | 1 Year | 3 Year | 5 Year | 10 Year | Fund Inceptiona |
| NAV | 38.66 | | | | -7.52 |
| After Tax Held | 33.09 | | | | -10.27 |
| After Tax Sold | 24.14 | | | | -7.88 |
| Market Price | 30.76 | | | | -7.65 |
| aFund and underlying Index returns are based on the inception date of the Fund. Returns for the benchmark indexes are based on the closest month end to the Fund's inception date. |
Total returns are based on the closing market price. Market returns are based on the midpoint of the bid/ask spread at 4 p.m. ET and do not represent the returns an investor would receive if shares were traded at other times. Performance data quoted represents past performance, which is not a guarantee of future results. Investment returns and principal value will fluctuate, and shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than performance data quoted. After-tax returns reflect the highest federal income tax rate but exclude state and local taxes. Fund performance reflects fee waivers, absent which, performance data quoted would have been lower. After Tax Held and After Tax Sold are based on NAV.
|
 |
| As of 9/30/2009 |
 |
| Data beginning 12/31/2006, the month end following Fund inception |
| An investor cannot invest directly in an index. The results assume that no cash was added to or assets withdrawn from the Index. Index returns do not represent Fund returns. The Index does not charge management fees or brokerage expenses, nor does the Index lend securities, and no revenues from securities lending were added to the performance shown.
|
 |
| |
Bid/Ask MidPoint Above NAV |
Bid/Ask Midpoint Below NAV |
| Quarter |
Days |
50-99
Basis Points |
100-199
Basis Points |
H200
Basis Points |
50-99
Basis Points |
100-199
Basis Points |
H200
Basis Points |
| 12/31/2009 |
22 |
0 |
0 |
0 |
0 |
0 |
0 |
| 9/30/2009 |
63 |
4 |
0 |
0 |
0 |
1 |
0 |
| 6/30/2009 |
63 |
18 |
4 |
0 |
4 |
0 |
0 |
| 3/31/2009 |
61 |
19 |
15 |
5 |
4 |
3 |
2 |
| Fund Inception: 12/1/2006 |
|
Fund Holdings subject to change |
|
| | Coupon Rate | Rating† | Weight |
| BARCLAYS BK PLC | 8.13% | BBB+/Baa2 | 8.40% |
| BANK OF AMER CRP | 8.20% | B/B3 | 8.01% |
| WELLS FARGO CO 8% PREFERR | 8.00% | A-/Ba3 | 5.19% |
| JPMORGAN CHASE | 8.63% | BBB+/A2 | 5.17% |
| BANK OF AMERICA 8.625% PD | 8.63% | B/B3 | 5.10% |
| ING GROEP NV | 8.50% | BBB/Ba1 | 4.95% |
| HSBC HLDGS PLC | 8.13% | A-/NR | 4.91% |
| CREDIT SUISSE GU | 7.90% | BBB+/Aa3 | 4.65% |
| METLIFE INC | 6.50% | BBB-/Baa1 | 4.37% |
| ING GROEP NV | 7.38% | BBB/Ba1 | 3.86% |
| | % of Fund:
(S&P) | % of Fund:
(Moody's) |
| AAA/Aaa | 0.00 | 0.00 |
| AA/Aa | 0.00 | 5.32 |
| A/A | 16.74 | 14.25 |
| BBB/Baa | 53.07 | 26.46 |
| BB/Ba | 4.55 | 18.63 |
| B/B | 18.30 | 25.64 |
| Other | 7.34 | 9.70 |
|
†The credit quality of the Fund's holdings represents the weighted average quality rating of the securities in the portfolio as assigned by Nationally Recognized Statistical Rating Organizations based on assessment of the credit worthiness of the underlying securities. The ratings range from AAA (highest) to D (lowest).
Performance data quoted represents past performance. Past performance is no guarantee of future results. PowerShares Exchange-Traded Fund Trust portfolios are not actively
managed and are subject to risk similar to stocks, including those related to short selling and margin maintenance. The PowerShares Financial Preferred Portfolio's return may not match the return of the WHPSsm Financial Index, as outlined in the prospectus. For actual Fund performance, please contact your financial advisor. Index performance does not reflect charges and expenses associated with the Fund or brokerage commissions associated with buying and selling Fund shares.
The value of the stocks in the WHPSsm Financial Index is likely to be more volatile than stocks of other issues. An investor in the Fund should anticipate that the value of their shares will increase or decease in value more or less in correlation with increases and decreases in the value of the Index. The Fund is concentrated in a single sector which involves substantially greater risk of loss and price fluctuations than an investment diversified across multiple industries or sector segments. There are risks involved with investing in ETFs including the possible loss of money. The investment return and principal value of an investment in
PowerShares Financial Preferred Portfolio will fluctuate so that shares, when sold, may be worth more or less than their original cost.
Because the Fund may utilize a sampling approach, its return may not correlate as well with the return on the Underlying Index, as would be the case if it purchased all of the stocks in the Underlying Index.
The Fund may not be fully invested at times, either as a result of cash flows into the fund or reserves of cash held by the Fund to meet redemptions and expenses.
The Fund, using an "indexing" investment approach, attempts to replicate,
before fees and expenses, the performance of the Underlying Index. The Adviser
seeks correlation over time of 0.95% or better between the Fund's performance
and the performance of the Underlying Index. The Adviser could use a "sampling"
methodology in seeking to achieve the Fund's investment objective. Sampling
involves the use of quantitative analysis to select securities from the Underlying
Index to obtain a representative sample of municipal securities that have in the
aggregate investment characteristics similar to the Underlying Index based on
such factors as duration, maturity, credit quality, yield and coupon. The Adviser
generally expects the Fund to hold less than the total number of securities in the
Underlying Index but reserves the right to hold as many securities as it believes
necessary to achieve the Fund's investment objective.
The Index may include small and medium-sized companies. Investing in securities of these companies involves greater risk than is customarily associated with investing in more established companies. These companies' stocks may be more volatile and less liquid than those of more established companies. These stocks may have returns that vary, sometimes significantly, from the overall stock market. Often smaller and medium capitalization companies and the industries in which they are focused are still evolving, and while this may offer better growth potential than larger, more established companies, it may also make them more sensitive to changing market conditions.
Please review a copy of the prospectus carefully prior to investing. The prospectus provides a detailed explanation of the costs of investing, including the Total Net Annual Fund Operating Expenses. You may purchase or sell PowerShares Financial Preferred Portfolio shares throughout the day through any brokerage account, which will result in typical brokerage commissions. However, only Authorized Participants may create or redeem Fund PowerShares Financial Preferred Portfolio shares directly from the Trust in large block creation/redemption units. The PowerShares Financial Preferred Portfolio is obligated to distribute portfolio gains to shareholders, and trading Fund shares may generate tax consequences.
Shares are not individually redeemable and owners of the Shares may acquire those shares from the Fund and tender those shares for redemption to the Fund in Creation Units only, typically consisting of aggregations of 50,000 shares.
The Fund is not sponsored or endorsed by the Amex, and the Amex makes no warranty or representation as to the accuracy and/or
completeness of the Indexes or the results to be obtained by any person from the use of the Indexes or the trading of the Fund shares.
The S&P Preferred Index is an unmanaged index
consisting of U.S.-listed preferred stocks. The S&P
500® Index is an unmanaged index considered
representative of the U.S. stock market.
Except where indicated otherwise, all information is as of date noted, and Invesco PowerShares Capital Management LLC is either the source of such data or has obtained it from third-party financial reporting sources.
PowerShares Financial Preferred Portfolio is subject to risks similar to those of stocks, including those regarding short selling and margin account maintenance. Usual brokerage commissions apply.
For more information regarding PowerShares Financial Preferred Portfolio or any of the Invesco PowerShares products, please call 800.983.0903.
