PowerShares will begin trading its new “PowerShares Convertible Securities Portfolio ETF” (NYSE:CVRT) Thursday, May 26, 2011. The Fund seeks investment results that correspond (before fees and expenses) generally to the price and yield of The BofA Merrill Lynch All U.S. Convertibles Index.
Total Annual Fund Operating Expenses: 0.35%
Principal Investment Strategies
The Fund will invest under normal circumstances at least 80% of its total assets in convertible securities. A convertible security is a fixed-income security that may be converted into or exchanged for a prescribed amount of common stock or other security of the same or a different issuer or into cash within a particular period of time at a specified price or formula. The Fund will invest at least 80% of its total assets in the component securities that comprise the Underlying Index. The Underlying Index is designed to track the performance of U.S. dollar-denominated investment grade and non-investment grade convertible securities sold into the U.S. market and publicly traded in the United States (including the over-the-counter
The Fund does not purchase all of the securities in the Underlying Index. Instead, the Fund utilizes a “sampling” methodology in seeking to achieve its investment objective.
Concentration Policy. The Fund will invest more than 25% of the value of its net assets in securities of issuers in an industry or group of industries to the extent that the Underlying Index concentrates in an industry or group of industries.
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