attracted the highest monthly inflows of all ETFs listed in 2011.
Listed on May 5, 2011, the PowerShares S&P 500® Low Volatility Portfolio (SPLV) represents the first volatility-weighted ETF available to US investors and currently has over $1.5 billion in AUM.
Since inception, the PowerShares S&P 500® Low Volatility Portfolio has outperformed the S&P 500 Index market-cap weighted benchmark while delivering lower volatility. For the one-year period ending May 5, 2012, SPLV achieved a total return of 11.57% based on NAV, significantly outperforming the S&P 500 Index which had a total return of 4.80% during the same period. (Note: total return figures include all dividends). Additionally, SPLV had a volatility of 16.14%, compared to 23.12% for the S&P 500 Index over the same period.1
SPLV Standardized Performance as of March 31, 2011.
Fund History (%)
After Tax Held
After Tax Sold
As stated in the Fund’s prospectus, the expense ratio of 0.25% is expressed as a unitary fee to cover expenses incurred in connection with managing the portfolio. Past performance is not a guarantee of future results; current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and Shares, when redeemed, may be worth more or less than their original cost. See invescopowershares.com to find the most recent month-end performance numbers. After Tax Held represents total return after taxes on distributions and assumes Shares have not been sold. After Tax Sold represents total return after taxes on distributions and the sale of Fund Shares. After-tax returns reflect the highest federal income tax rate but exclude state and local taxes. 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.
“Investors’ affinity for low volatility investment strategies is driven by the potential to provide improved risk adjusted returns over long term market cycles,” said Ben Fulton, Invesco PowerShares managing director of global ETFs. “One of the central themes of the low volatility strategy is the potential for a degree of downside protection in falling markets, while seeking to maintain upside participation. We are very pleased with the initial performance for the PowerShares S&P 500® Low Volatility Portfolio (SPLV) and believe the recent addition of PowerShares low volatility ETFs for emerging and international developed markets (EELV, IDLV) can provide investors with efficient access to this investment approach on a global level.”
PowerShares Low Volatility Strategies:
- (NYSEARCA:SPLV) PowerShares S&P 500® Low Volatility Portfolio
- (NYSEARCA:EELV) PowerShares S&P Emerging Markets Low Volatility Portfolio
- (NYSEARCA:IDLV) PowerShares S&P International Developed Low Volatility Portfolio
The PowerShares S&P 500® Low Volatility Portfolio is based on the S&P 500® Low Volatility Index. The Fund will invest at least 90% of its total assets in common stocks that comprise the Index. The Index is compiled, maintained and calculated by Standard & Poor’s and consists of the 100 stocks from the S&P 500 Index with the lowest realized volatility over the past 12 months. Volatility is a statistical measurement of the magnitude of up and down asset price fluctuations over time. The Fund is rebalanced and reconstituted quarterly in Feb, May, Aug, and Nov.
The PowerShares S&P Emerging Markets Low Volatility Portfolio is based on the S&P BMI Emerging Markets Low Volatility Index. Standard & Poor’s compiles, maintains and calculates the Underlying Index, which is designed to measure the performance of 200 of the least volatile stocks of the S&P Emerging BMI plus LargeMid Cap Index. The S&P Emerging BMI Plus LargeMid Cap Index includes all publicly listed equity securities with float-adjusted market values of at least $100 million and annual dollar value traded of at least $50 million from the following countries: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Hungary, India, Indonesia, South Korea, Malaysia, Mexico, Morocco, Peru, Philippines, Poland, Russia, South Africa, Taiwan, Thailand and Turkey.
The PowerShares S&P International Developed Low Volatility Portfolio is based on the S&P BMI International Developed Low Volatility Index. Standard & Poor’s compiles, maintains and calculates the Underlying Index, which is designed to measure the performance of 200 of the least volatile stocks of the S&P Developed ex US and South Korea LargeMid Cap BMI Index. The S&P Developed ex US and South Korea LargeMid Cap BMI Index includes all publicly listed equity securities with float adjusted market values of at least $100 million and annual dollar value traded of at least $50 million from the following countries: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Israel, Italy, Japan, Luxembourg, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, and the United Kingdom.
Invesco PowerShares Capital Management LLC is Leading the Intelligent ETF Revolution® through its family of more than 140 domestic and international exchange-traded funds, which seek to outperform traditional benchmark indexes while providing advisors and investors access to an innovative array of focused investment opportunities. With franchise assets over $72 billion as of March 31, 2011, PowerShares ETFs trade on both U.S. stock exchanges. For more information, please visit us at invescopowershares.com or follow us on Twitter @PowerShares.
Invesco is a leading independent global investment manager, dedicated to helping investors worldwide achieve their financial objectives. By delivering the combined power of our distinctive investment management capabilities, Invesco provides a wide range of investment strategies and vehicles to our retail, institutional and high net worth clients around the world. Operating in more than 20 countries, the company is listed on the New York Stock Exchange under the symbol IVZ. Additional information is available at www.invesco.com.
1 Source: Bloomberg L.P., as of May 5, 2012
There are risks involved with investing in ETFs, including possible loss of money. Shares are not actively managed and are subject to risks including those regarding short selling and margin maintenance requirements. Ordinary brokerage commissions may apply.
Not FDIC Insured | May Lose Value | No Bank Guarantee
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.
Invesco Distributors, Inc. is the distributor of the PowerShares Exchange-Traded Fund Trusts.
The prices of equity securities change in response to many factors, including the historical and prospective earnings of the issuer, the value of its assets, general economic conditions, interest rates, investor perceptions and market liquidity.
Foreign securities have additional risks, including exchange-rate changes, decreased market liquidity, political instability and taxation by foreign governments.
Investment in securities in emerging market countries involves risks not associated with investments in securities in developed countries.
Investing in securities of medium capitalization companies involves greater risk than customarily associated with investing in larger, more established companies.
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.
The Funds are non-diversified and can invest a greater portion of their assets in securities of individual issuers than a diversified fund.
Standard & Poor’s® and S&P® are registered trademarks of Standard & Poor’s Financial Services LLC (“Standard & Poor’s”) and have been licensed for use by the Adviser. The Funds are not sponsored, endorsed, sold or promoted by Standard & Poor’s or its Affiliates, and Standard & Poor’s and its Affiliates make no representation, warranty or condition regarding the advisability of buying, selling or holding shares of the Funds.
Note: Not all products available through all firms.
PowerShares® is a registered trademark of Invesco PowerShares Capital Management LLC. Invesco PowerShares Capital Management LLC and Invesco Distributors, Inc. are indirect, wholly owned subsidiaries of Invesco Ltd.
An investor should consider the Fund’s investment objective, risks, charges and expenses carefully before investing. For this and more complete information about the Fund call 800 983 0903 or visit invescopowershares.com for a prospectus. Please read the prospectus carefully before investing.