The PowerShares VRDO Tax-Free Weekly Portfolio (Fund) is based on the Bloomberg US Municipal AMT-Free Weekly VRDO Index (Index). The Fund will normally invest at least 80% of its total assets in securities that comprise the Index and generally expects to invest at least 90% of its total assets. The Index is comprised of municipal securities issued in the primary market as Variable Rate Demand Obligations (VRDOs) whose interest rates are reset weekly.
VRDOs are floating-rate bonds that provide investors with tax-exempt income. VRDOs are generally purchased at par. When they are put back to an investment dealer, the investor generally receives par plus accrued interest.
Effective Aug. 5, 2010, PowerShares VRDO Tax-Free Weekly Portfolio's underlying Index changed from the Thomson Municipal Market Data VRDO Index to the Bloomberg US Municipal AMT-Free Weekly VRDO Index. |
 |
Date |
|
9/1/2010 |
|
|
Price |
|
24.99 |
|
|
Bid/Ask Midpoint |
|
25.00 |
|
| |
|
NAV |
|
25.00 |
|
|
Bid/Ask Prem/Disc  |
|
0.00 |
|
|
Bid/Ask Prem/Disc |
|
-0.01% |
|
|
|
|
|
|
| As of 6/30/2010 |
| Index History (%) | 1 Year | 3 Year | 5 Year | 10 Year | Fund Inceptiona |
| Bloomberg US Municipal AMT-Free Weekly VRDO Index | | | | | |
| Thomson Municipal Market Data VRDO Index | 0.40 | | | | 1.57 |
| Barclays Capital Muni 1 Year Index | 2.43 | | | | 3.73 |
| Barclays Capital US Aggregate Index | 9.50 | | | | 7.03 |
|
| Fund History (%) | 1 Year | 3 Year | 5 Year | 10 Year | Fund Inceptiona |
| NAV | 0.48 | | | | 1.93 |
| After Tax Held | 0.30 | | | | 1.23 |
| After Tax Sold | 0.31 | | | | 1.24 |
| Market Price | 0.44 | | | | 1.92 |
The Index is new and therefore has no full-year performance and history. |
| 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. |
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.
|
| 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 |
| 6/30/2010 |
63 |
0 |
0 |
0 |
0 |
0 |
0 |
| 3/31/2010 |
61 |
0 |
0 |
0 |
0 |
0 |
0 |
| 12/31/2009 |
64 |
0 |
0 |
0 |
0 |
0 |
0 |
| 9/30/2009 |
63 |
0 |
0 |
0 |
0 |
0 |
0 |
| Fund Inception: 11/15/2007 |
|
Fund Holdings subject to change |
|
| | Coupon Rate | Maturity Date | Rating† | Weight |
| HARRIS COUNTY HEALTH FACILITIES | 0.35% | 6/1/2027 | AAA/Aa3 | 5.90% |
| CHICAGO ILL BRD ED Floater 3/1/2032 | 0.32% | 3/1/2032 | AAA/Aa2 | 5.06% |
| METROPOLITAN NY FLTR. 11/1/29 | 0.30% | 11/1/2029 | AAA/Aa3 | 4.02% |
| SPRINGFIELD TENN HEALTH EDL FLT 08/01/2033 | 1.25% | 8/1/2033 | NR/Baa1 | 3.45% |
| WHITE CNTY IND HOSP ASSN LEASE/RENT REV 10/01/38 | 1.25% | 10/1/2038 | NR/Baa1 | 3.33% |
| AUSTIN TEX WTR & WASTEWATER FLOATER 5/15/2024 | 0.31% | 5/15/2024 | AAA/Aa2 | 3.30% |
| USF FING CORP FLA CTFS PARTN VAR 07/01/2037 | 0.40% | 7/1/2037 | A+/A2 | 3.19% |
| INDIANA HEALTH & EDL FLT 2/15/2021 | 0.31% | 2/15/2021 | AAA/Aa3 | 2.88% |
| WASHINGTON CNTY ALA INDL DEV AUTH VAR 08/01/2037 | 1.00% | 8/1/2037 | NR/Baa1 | 2.85% |
| CALIFORNIA ST FLT 05/01/2040 | 1.15% | 5/1/2040 | BBB/Aa3 | 2.85% |
| | % of Fund |
| 0 - 1 years | 1.13 |
| 1 - 5 | 0.18 |
| 5 - 10 | 5.14 |
| 10 - 15 | 19.10 |
| 15 - 20 | 23.08 |
| 20 - 25 | 21.60 |
| 25 and Over | 29.78 |
| |
| | % of Fund:
(S&P) | % of Fund:
(Moody's) |
| AAA/Aaa | 44.89 | 6.68 |
| AA/Aa | 23.47 | 62.96 |
| A/A | 8.07 | 16.99 |
| BBB/Baa | 3.38 | 11.92 |
| BB/Ba | 0.00 | 0.24 |
| B/B | 0.00 | 0.00 |
| Unrated | 20.19 | 1.22 |
|
†Credit ratings are assigned by Nationally Recognized Statistical Rating Organizations based on assessment of the credit worthiness of the underlying bond issuers. The ratings range from AAA (highest) to D (lowest) and are subject to change.
Municipal securities may be affected by political changes as well as uncertainties in the municipal market related to taxation, legislative changes or the rights of municipal security holders. The market for municipal bonds may also be less liquid than for taxable bonds.
There may not be an active secondary market with respect to particular variable rate instruments in which the Fund invests, which could make it difficult for the Fund to dispose of a variable rate instrument if the issuer and/or the Remarketing Agent defaulted on its payment obligation or during periods that the Fund is not entitled to exercise its demand rights, and the Fund could, for these or other reasons, suffer a loss with respect to such instruments.
Municipal insurance doesn't protect against losses in the Fund.
The Fund may invest in debt securities, such as notes and bonds, which carry interest rate and credit risk. Interest rate risk refers to the risk that bond prices generally fall as interest rates rise and vice versa. Credit risk is the risk of loss on an investment due to the deterioration of an issuer's financial health.
The Fund's underlying securities may be subject to call risk, which may result in the Fund having to reinvest the proceeds at lower interest rates, resulting in a decline in the Fund's income.
The Fund's use of a representative sampling approach will result in its holding a smaller number of securities than are in the underlying Index, and may be subject to greater volatility.
There is no guarantee that the Fund's income will be exempt from federal or state income taxes.
The Fund is considered non-diversified and may be subject to greater risks than a diversified fund.
The Barclays Capital Muni 1-Year Total Return Index is an unmanaged index of municipal bonds with a remaining maturity of 1-2 years. The Barclays Capital U.S. Aggregate Index is an unmanaged index considered representative of the U.S. investment-grade, fixed-rate bond market.
For more information regarding PowerShares VRDO Tax-Free Weekly Portfolio or any of the Invesco PowerShares products, please call 800.983.0903.
