Invesco PowerShares Capital Management LLC, a leading provider of
exchange-traded funds (ETFs) with more than $52 billion in
franchise assets, today announced the five-year anniversary of the
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (NASDAQ: PRFZ).
The PowerShares FTSE RAFI US 1500 Small-Mid Portfolio is part of
the first retail suite of investment products to provide investors
access to the passive Research Affiliates® Fundamental Index
(RAFI®) methodology. This award-winning index methodology uses four
fundamental measures of company size: book value, cash flow, sales
and dividends, to select and weight index constituents. By using
four fundamental factors rather than one, the RAFI methodology is
thought to be a more robust means of capturing a company's true
economic footprint.
Since inception, the PowerShares FTSE RAFI US 1500 Small-Mid
Portfolio has outperformed its market-cap-weighted benchmarks, the
Russell 2000 and S&P 600 Indexes. For the five-year period
ending Sept. 30, 2011, PRFZ achieved a cumulative total return of
9.11% based on NAV, significantly outperforming the S&P 600
Index which had a total cumulative return of 1.34%. The Russell
2000 Index gained 4.98%, and the Russell 2000 Value Index had a
cumulative total return of -14.47% over the same five-year period.
(Source: Bloomberg)
"We are pleased to celebrate the five-year milestone for the
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ), which has
delivered on its goal of providing investors improved risk-adjusted
returns compared to cap-weighted benchmarks," said Ben Fulton,
Invesco PowerShares managing director of global ETFs. "PRFZ along
with its US large-cap complement, the PowerShares FTSE RAFI US 1000
Portfolio (PRF) have both established a five-year track record
demonstrating the effectiveness the RAFI Fundamental Index
methodology over varying market cycles."
"Invesco PowerShares currently offers 15 equity and two
fixed-income ETFs based on the RAFI Fundamental Index methodology.
We believe the PowerShares ETFs based on this methodology represent
an attractive alternative to cap-weighted portfolios," added John
Feyerer, head of product strategy & research at Invesco
PowerShares.
"The Fundamental Index methodology works best in less efficient
markets, such as small to mid-size stocks," said Rob Arnott,
chairman and CEO of Research Affiliates, LLC. "Cap-weighted passive
approaches can incur a return drag from overweighting overvalued
stocks and underweighting undervalued securities. The RAFI approach
provides a potential solution to this systemic problem."
PowerShares Fundamental Weighted ETFs with a Three-Year Track
Record:
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As of 9.30.11 Inception
Name Ticker Date
----------------------------------------------------------------------------
PowerShares FTSE RAFI US 1000 PRF 12/19/2005
Russell 1000 Index
----------------------------------------------------------------------------
PowerShares FTSE RAFI 1500 Small-Mid PRFZ 09/20/2006
Russell 2000 Index
----------------------------------------------------------------------------
PowerShares FTSE RAFI Emerging Markets PXH 09/27/2007
MSCI Emerging Markets Index
----------------------------------------------------------------------------
PowerShares FTSE RAFI Dev Mkts ex-US PXF 06/25/2007
MSCI EAFE Index
----------------------------------------------------------------------------
PowerShares FTSE RAFI Dev Mrkts ex-US S/M PDN 09/27/2007
MSCI EAFE Small Cap Index
----------------------------------------------------------------------------
PowerShares FTSE RAFI Asia Pacific ex-Jp PAF 06/25/2007
MSCI Pacific ex-Japan Index
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Since
Inception
Annualized Since Inception
Performance Since Inception Risk Adj.
Lipper Classification at NAV Lipper Rank(1) Return(2)
----------------------------------------------------------------------------
Large-Cap Core Funds 1.42% 14% 0.08
0.41% (104 of 776) 0.03
----------------------------------------------------------------------------
Small-Cap Core Funds 1.58% 19% 0.07
-1.24% (99 of 529) -0.04
----------------------------------------------------------------------------
Emerging Markets Funds -5.23% 26% -0.17
-5.32% (59 of 234) -0.17
----------------------------------------------------------------------------
International Large-Cap
Core -8.14% 43% -0.31
-8.30% (116 of 272) -0.36
----------------------------------------------------------------------------
International Small/Mid-Cap
Core -2.47% 3% -0.10
-6.52% (1 of 36) -0.24
----------------------------------------------------------------------------
Pacific Ex Japan Funds 0.34% 28% 0.01
-2.19% (10 of 35) -0.07
----------------------------------------------------------------------------
Sources: Bloomberg and Lipper, as of September 30, 2011. Past
performance does not guarantee future results. 1 Since Inception
Lipper Rank begins the month-end date of the ETF's inception month.
Lipper fund percentile rankings are based on total returns,
excluding sales charges and including fees and expenses, and are
versus all funds in the category tracked by Lipper. 2 Risk adjusted
return calculated by dividing annualized return by the standard
deviation of returns. An investor cannot invest directly in an
index.
As of September 30, 2011
------------------------------------------------------
Annualized Return (%)
----------------------------------------------
---------------------- NAV After Tax Held
PowerShares FTSE RAFI Exp. ----------------------------------------------
Portfolio Ratio 1 Yr 5 Yr Incept. 1 Yr 5 Yr Incept.
----------------------------------------------------------------------------
U.S. 1000 0.39% -0.76% -0.31% 1.42% -1.44% -0.92% 0.83%
U.S. 1500 Small-Mid 0.39% -4.73% 1.76% 1.58% -5.06% 1.45% 1.28%
Emerging Markets 0.85% -17.00% -5.23% -17.63% -5.74%
Developed Markets ex-
U.S. 0.75% -13.39% -8.14% -14.35% -8.79%
Developed Markets ex-
U.S. S/M 0.75% -3.35% -2.47% -4.25% -3.16%
Asia Pacific ex-Japan 0.80% -10.35% 0.34% -11.14% -0.81%
----------------------------------------------------------------------------
----------------------------------------------
Annualized Return (%)
----------------------------------------------
After Tax Sold Share Price
----------------------------------------------
1 Yr 5 Yr Incept. 1 Yr 5 Yr Incept.
----------------------------------------------
-0.44% -0.61% 0.87% -0.66% -0.32% 1.48%
-3.04% 1.32% 1.17% -4.77% 1.76% 1.56%
-10.97% -4.66% -19.06% -6.24%
-8.59% -7.08% -13.90% -8.24%
-2.11% -2.47% -5.04% -3.24%
-6.63% -0.37% -12.30% -0.05%
----------------------------------------------
Performance data quoted represents past performance. As stated
in each Fund's prospectus, expense ratios are expressed as a
unitary fee to cover expenses incurred in connection with managing
the portfolios. *The PowerShares FTSE RAFI US 1000 and US 1500
Small-Mid Portfolios have gross expense ratios of 0.44% and 0.46%,
respectively. However, the Adviser has contractually agreed to
waive fees and/or pay certain Fund expenses which resulted in the
total net operating expense of 0.39% for each fund. These waivers
and reimbursement contracts extend through at least Aug. 31, 2012.
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.
The Shares' performance reflects fee waivers, absent which
performance would have been lower. 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.
The PowerShares FTSE RAFI US 1500 Small-Mid Portfolio is based
on the FTSE RAFI US 1500 Small-Mid Index. The Fund will normally
invest at least 90% of its total assets in common stocks that
comprise the Index. The Index is designed to track the performance
of small and medium-sized U.S. companies. Companies are selected
based on the following four fundamental measures of size: book
value, cash flow, sales and dividends. Each of the equities with a
fundamental weight ranking of 1,001 to 2,500 is then selected and
assigned a weight equal to its fundamental weight. The
fundamentally weighted portfolio is rebalanced and reconstituted
annually.
Research Affiliates, LLC, a global leader in innovative
investing and asset allocation strategies, operates worldwide from
its base in Newport Beach, California. Dedicated to solving complex
investment issues, the firm creates innovative strategies that
respond to the current needs of the market. Leveraging its strong
research focus, Research Affiliates distributes investment products
in partnership with some of the world's leading financial
institutions. The firm, founded in 2002 by Robert D. Arnott, a
renowned innovator in investment theory and practice, is majority
employee-owned and employs a team of more than 50 employees. As of
August 31, 2011, approximately $48 billion in assets are managed
worldwide using investment strategies developed by Research
Affiliates.
Research Affiliates won the Global Pensions Award for Investment
Strategy Index Provider of the Year for the RAFI methodology in
2009 and 2010.
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 $52 billion as of
September 30, 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.
There are risks involved with investing in ETFs, including
possible loss of money. Shares are not actively managed and are
subject to risks similar to those of stocks, including those
regarding short selling and margin maintenance requirements.
Ordinary brokerage commissions apply. The Fund's return may not
match the return of the Underlying Index.
The MSCI Emerging Markets Index(SM) is an unmanaged index
considered representative of stocks of developing countries.
The MSCI EAFE® Index is an unmanaged index considered
representative of stocks of Europe, Australasia and the Far
East.
The MSCI Small Cap Index is an unmanaged index considered
representative of small-cap stocks.
The MSCI Pacific Ex-Japan Index is an unmanaged index considered
representative of stocks of Australia, Hong Kong, New Zealand, and
Singapore.
Sector/Industry Disclosure Investments
focused in a particular industry and sectors are subject to greater
risk, and are more greatly impacted by market volatility, than more
diversified investments.
PRF and PRFZ Investing in securities of
small and medium-sized companies may involve greater risk than is
customarily associated with investing in large companies.
PXH The Fund may contain securities in the
energy, financial services and basic materials sectors. Companies
engaged in these sectors are subject to greater risks, and are more
greatly impacted by market volatility, than more diversified
investments.
Foreign securities have additional risks, including
exchange-rate changes, decreased market liquidity, potential
instability and taxation by foreign governments.
Investment in securities in emerging market countries involves
risks not associated with investments in securities in developed
countries.
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.
Investing in securities of medium capitalization companies may
involve greater risk than is customarily associated with investing
in large companies.
Returns on investments in securities of large U.S. companies
could trail the returns on investments in stocks of smaller
companies.
The Fund is considered non-diversified and may be subject to
greater risks than a diversified fund.
PXF Investing in securities of medium
capitalization companies may involve greater risk than is
customarily associated with investing in large companies.
The Fund may contain securities in the financial services
sector. Companies engaged in these sectors are subject to greater
risks, and are more greatly impacted by market volatility, than
more diversified investments. Returns on investments in securities
of large U.S. companies could trail the returns on investments in
stocks of smaller companies.
Foreign securities have additional risks, including
exchange-rate changes, decreased market liquidity, potential
instability and taxation by foreign governments.
PDN The Fund may contain securities in the
industrials, financial services and consumer discretionary sectors.
Companies engaged in these sectors are subject to greater risks,
and are more greatly impacted by market volatility, than more
diversified investments.
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.
Investing in securities of small and medium-sized companies may
involve greater risk than is customarily associated with investing
in large companies.
The Fund is 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, potential
instability and taxation by foreign governments.
PAF Investment in securities in emerging
market countries involves risks not associated with investments in
securities in developed countries.
Foreign securities have additional risks, including
exchange-rate changes, decreased market liquidity, potential
instability and taxation by foreign governments.
The economies of the countries in the Asia Pacific region are
largely intertwined, if an economic recession is experienced by any
of these countries, it will likely adversely impact the economic
performance of other countries in the region.
Investing in securities of medium capitalization companies may
involve greater risk than is customarily associated with investing
in large companies.
Returns on investments in securities of large U.S. companies
could trail the returns on investments in stocks of smaller
companies. The Fund may contain securities in the financial
services sector. Companies engaged in these sectors are subject to
greater risks, and are more greatly impacted by market volatility,
than more diversified investments.
The Fund is considered non-diversified and may be subject to
greater risks than a diversified fund.
Not FDIC Insured | May Lose Value | No Bank Guarantee
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.
Shares are not individually redeemable and
owners of the Shares may acquire those Shares from the Funds and
tender those Shares for redemption to the Funds in Creation Unit
aggregations only, typically consisting of 50,000 Shares.
Invesco Distributors, Inc. is the distributor
of the PowerShares Exchange-Traded Fund Trust and the PowerShares
Exchange-Traded Fund Trust II.
The trade names Fundamental Index®, RAFI®, the RAFI logo, and
the Research Affiliates corporate name and logo are registered
trademarks and are the exclusive property of Research Affiliates,
LLC. Fundamental Index® concept, the non-capitalization method for
creating and weighting of an index of securities, is the patented
and patent-pending proprietary intellectual property of Research
Affiliates, LLC.
The S&P SmallCap 600 Index is a market-value weighted index
that consists of 600 small-cap U.S. stocks chosen for market size,
liquidity and industry group representation. The Russell 2000®
Index is an unmanaged index considered representative of small-cap
stocks. The Russell 2000 Index is a trademark/service mark of the
Frank Russell Co. Russell® is a trademark of the Frank Russell
Co.
An investor should consider the Funds'
investment objectives, risks, charges and expenses. 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.
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Media Contacts: Kristin Sadlon Porter Novelli
212-601-8192 Email Contact Bill Conboy 303-415-2290 Email
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