Invesco PowerShares Capital Management LLC, a leading global provider of exchange-traded funds (ETFs) with more than $54 billion in franchise assets, recently announced the distribution amount for two recently listed ETFs, the PowerShares KBW High Dividend Yield Financial Portfolio (NYSE:KBWD), and the PowerShares KBW Premium Yield Equity REIT Portfolio (NYSE:KBWY). Both funds utilize a dividend yield-weighted index methodology.
|Fund Name & Ticker||Ex-Date||Record Date||Pay Date||Ordinary
|30-Day SEC Yield *|
|PowerShares KBW High Dividend Yield Financial Portfolio (KBWD)||1/14/11||1/19/11||1/31/11||0.19201||9.83%|
|PowerShares KBW Premium Yield Equity REIT Portfolio (KBWY)||1/14/11||1/19/11||1/31/11||0.12070||5.84%|
* 30-Day SEC Yield as of 1/24/11
|Fund History since inception||KBWD||KBWY|
|After Tax Held||3.06%||2.47%|
|After Tax Sold||1.99%||1.60%|
Inception date: Dec. 2, 2010
Performance as of Dec. 31, 2010
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.
“The financial sector has traditionally offered attractive dividend opportunities. We believe that as the industry’s fundamentals continue to improve, portfolios utilizing the KBW yield-weighted methodology can be an excellent way for investors to access certain financial sub sectors,” said Ben Fulton, Invesco PowerShares managing director of global ETFs.
The PowerShares KBW High Dividend Yield Financial Portfolio (KBWD) is based on the KBW Financial Sector Dividend Yield Index. The Fund will normally invest at least 90% of its total assets in securities that comprise the Underlying Index. The Underlying Index is constructed by KBW using a dividend yield weighted methodology that seeks to reflect the performance of approximately 24 to 40 publicly listed financial companies that are principally engaged in the business of providing financial services and products, including banking, insurance and diversified financial services, in the United States. The Index may also include securities of business development companies (BDCs) and equity and mortgage REITs.
The PowerShares KBW Premium Yield Equity REIT Portfolio (KBWY) is based on the KBW Premium Yield Equity REIT Index. The Fund will normally invest at least 90% of its total assets in securities that comprise the Underlying Index. The Underlying Index is constructed by KBW using a dividend yield weighted methodology that seeks to reflect the performance of approximately 24 to 40 small- and mid-cap equity REITs in the United States.
Invesco PowerShares Capital Management LLC is leading the Intelligent ETF Revolution® through its family of more than 148 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 $54 billion as of Dec. 31, 2010, PowerShares ETFs trade on both U.S. stock exchanges. For more information, please visit us at www.invescopowershares.com.
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.
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 apply.
The Funds are considered non-diversified and may be subject to greater risks than a diversified fund.
Foreign securities have additional risks, including exchange-rate changes, decreased market liquidity, political instability and taxation by foreign governments.
Although the Fund will not invest in real estate directly, the REITs in which the Fund will invest will be subject to risks inherent in the direct ownership of real estate. Companies engaged in REITs and high yielding paying companies are subject to greater risks, and are more greatly impacted by market volatility, than more diversified investments.
KBWY – PowerShares KBW Premium Yield Equity REIT Portfolio Risk
Investments in real estate instruments may be affected by economic, legal, cultural, environment or technological factors that affect the property values, rents or occupancies of real estate related to the Fund’s holdings.
Investing in securities of small and medium-sized companies may involve greater risk than is customarily associated with investing in large companies.
KBWD – PowerShares KBW High Dividend Yield Financial Portfolio Risk
The Underlying Index may also include securities of business development companies (“BDCs”) and equity and mortgage REITs. The Fund contains securities in the financial sector. Companies engaged in this sector are subject to greater risks, and are more greatly impacted by market volatility, than more diversified investments.
There are certain risks inherent in investing in Business Development Corporations (“BDCs”). The Investment Company Act of 1940, as amended (the “1940 Act”), imposes certain restraints upon the operations of a BDC. For example, BDCs are required to invest at least 70% of their total assets primarily in securities of private companies or thinly traded U.S. public companies, cash, cash equivalents, U.S. government securities and high quality debt investments that mature in one year or less. Generally, little public information exists for private and thinly traded companies and there is a risk that investors may not be able to make a fully informed investment decision. With investments in debt instruments, there is a risk that the issuer may default on its payments or declare bankruptcy. Additionally, a BDC may only incur indebtedness in amounts such that the BDC’s asset coverage equals at least 200% after such incurrence. These limitations on asset mix and leverage may prohibit the way that the BDC raises capital. BDCs generally invest in less mature private companies which involve greater risk than well-established publicly-traded companies. To the extent that the Fund invests a portion of its assets in BDCs, a shareholder in the Fund will bear not only his or her proportionate share of the expenses of the Fund, but also, indirectly the expenses of the BDCs.
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 Unit aggregations only, typically consisting of 50,000 Shares.
Invesco Distributors, Inc. is the distributor of the PowerShares Exchange-Traded Fund Trust II.
PowerShares® is a registered trademark of Invesco PowerShares Capital Management LLC (Invesco PowerShares). Invesco PowerShares Capital Management LLC and Invesco Distributors, Inc. are indirect, wholly owned subsidiaries of Invesco Ltd.
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An investor should consider the Funds’ investment objectives, risks, charges and expenses carefully before investing. For this and more complete information about the Funds, call 800 983 0903 or visit invescopowershares.com for a prospectus. Please read the prospectus carefully before investing.