Invesco PowerShares Capital Management LLC, a leading global
provider of exchange-traded funds (ETFs), announced today that its
suite of nine PowerShares Fundamental Pure Style ETFs based on the
Research Affiliates® Fundamental Index® (RAFI®) methodology have
begun trading on the NYSE Arca.
The names and tickers for the PowerShares Fundamental Pure Style
ETFs are listed below.
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Value Core Growth
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PowerShares PowerShares PowerShares
Fundamental Pure Fundamental Pure Fundamental Pure
Large Large Value Large Core Large Growth
Portfolio (PXLV) Portfolio (PXLC) Portfolio (PXLG)
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PowerShares PowerShares PowerShares
Fundamental Pure Fundamental Pure Fundamental Pure
Mid Mid Value Mid Core Mid Growth
Portfolio (PXMV) Portfolio (PXMC) Portfolio (PXMG)
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PowerShares PowerShares PowerShares
Fundamental Pure Fundamental Pure Fundamental Pure
Small Small Value Small Core Small Growth
Portfolio (PXSV) Portfolio (PXSC) Portfolio (PXSG)
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"We are very pleased to be expanding our partnership with
Research Affiliates to offer investors the first suite of
fundamentals-weighted style box ETFs,(1)" said Ben Fulton, Invesco
PowerShares managing director of global ETFs. "The PowerShares
Fundamental Pure Style ETFs utilize a fundamental rules-based
process to attain precise style delineation and provide investors
with accurate, stylistically pure market access. We believe the
application of the Fundamental Index methodology to style box
investing offers advisors and investors a compelling new tool to
manage portfolios with the potential to produce improved
risk-adjusted returns compared to cap-weighted benchmarks."
The PowerShares Fundamental Pure Style ETFs are designed to
address the structural performance drag caused by market
cap-weighting, which over time tends to overweight overvalued
stocks and underweight undervalued stocks. The RAFI methodology
uses four measures of economic size rather than market
capitalization to weight each position. Selecting and weighting by
economic size rather than market-cap breaks the link between market
price and index weight.
"The new U.S. style indexes illustrate how the Fundamental Index
methodology can be effectively applied in individual style
categories, every bit as effectively as cap-weight indexes can,"
said Rob Arnott, chairman and CEO of Research Affiliates, LLC. "We
are thrilled to partner with Invesco PowerShares on this and future
additional extensions of our approach."
"Invesco PowerShares currently offers six equity ETFs based on
the Fundamental Index methodology and they have all outperformed
their respective market cap-weighted benchmarks since their
inception dates,(2)" said John Feyerer, head of product strategy
& research at Invesco PowerShares. "We believe investors
seeking precise style classification with the potential for
improved performance will have affinity for the PowerShares
Fundamental Pure Style ETFs."
(1) On June 16, 2011, Invesco PowerShares changed the indexes,
names and ticker symbols for seven existing ETFs in its Intellidex
style/size lineup to the RAFI Fundamental US Style Index Series
(RAFI Index Series). In addition, Invesco PowerShares listed two
new funds; the PowerShares Fundamental Pure Large Growth Portfolio
(PXLG), and the PowerShares Fundamental Pure Large Value Portfolio
(PXLV), to provide investors with a complete suite of style box
ETFs based on the RAFI Fundamental Index methodology. The rebranded
portfolios management fees will be reduced to 0.29% and their
operating expenses (excluding certain expenses) will be capped at
0.39% until at least Aug. 31, 2012.
(2) Source: Bloomberg L.P., as of May 31, 2011
The PowerShares Fundamental Pure Style ETFs are based on the
RAFI Fundamental US Style Index Series. The indexes are constructed
from the 2,500 largest U.S. listed companies, based on the
following four fundamental measures of firm size: latest available
book value, cash flow averaged over the prior five years, sales
averaged over the prior five years and total dividend distributions
averaged over the prior five years. A composite fundamental weight
is calculated for each firm by equally weighting the four
fundamental measures. For companies that have never paid dividends,
that measure will be excluded from the average. Each company is
then classified as "large," "mid" or "small" and "growth," "core"
or "value" in the following manner:
1) Stocks are segregated into three size groups: "large," "mid"
and "small." Companies are divided amongst these groups based on
their fundamental weight. Securities which have a substantially
different fundamental weight relative to their market cap weight
are excluded.
2) Once classified into the three size groups, RAFI methodology
uses fundamental measures of growth and value to give each company
a style score. Based on this style score companies are classified
as "growth," "core" or "value."
3) Stocks within each sub-index are weighted by their composite
fundamental weight.
Each index in the RAFI Fundamental US Style Index Series is
reconstituted and rebalanced annually on the third Friday of
March.
As of 3/31/11
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Ticker Inception Lipper
Name Date Classification
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PowerShares FTSE RAFI PRF 12/19/05 Large-Cap Core
US 1000
Russell 1000 Index
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PowerShares FTSE RAFI PRFZ 9/20/06 Small-Cap Core
US 1500 Small-Mid
Russell 2000 Index
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PowerShares FTSE RAFI PXH 9/27/07 Emerging Markets
Emerging Markets
MSCI Emerging Markets
Index
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PowerShares FTSE RAFI PXF 6/25/07 International
Dev Markets ex-U.S. Large-Cap Core
MSCI EAFE Index
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PowerShares FTSE RAFI PDN 9/27/07 International
Dev Markets ex-U.S. S/M S/M-Cap Core
MSCI EAFE Small Cap Index
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PowerShares FTSE RAFI PAF 6/25/07 Pacific Ex Japan
Asia Pacific ex-Japan
MSCI Pacific ex-Japan
Index
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As of 3/31/11
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Since Since
Inception Inception
Annualized 1 Year 5 Year Lipper
Name Performance Lipper Rank Lipper Rank Rank
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PowerShares FTSE RAFI 12.00% 10.00% 10%
US 1000 5.03% (118 of 1067) (74 of 788) (71 of 767)
Russell 1000 Index 3.49%
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PowerShares FTSE RAFI 52.00% 14%
US 1500 Small-Mid 8.10% (385 of 746) (76 of 547)
Russell 2000 Index 4.52%
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PowerShares FTSE RAFI 52.00% 18%
Emerging Markets 2.26% (188 of 365) (41 of 235)
MSCI Emerging Markets
Index 1.38%
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PowerShares FTSE RAFI 45.00% 21%
Dev Markets ex-U.S. -2.89% (174 of 393) (68 of 327)
MSCI EAFE Index -4.53%
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PowerShares FTSE RAFI 59.00% 3%
Dev Markets ex-U.S. S/M 1.95% (34 of 57) (1 of 40)
MSCI EAFE Small Cap Index -2.06%
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PowerShares FTSE RAFI 22.00% 23%
Asia Pacific ex-Japan 7.50% (12 of 56) (8 of 35)
MSCI Pacific ex-Japan
Index 3.45%
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Sources: Lipper, as of March 31, 2011. Annualized fund and index
performance is since each fund's inception date. *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. Past
performance does not guarantee future results. An investor cannot
invest directly in an index.
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As of March 31, 2011 Annualized Returns (%)
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NAV After Tax Held
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PowerShares FTSE RAFI® Exp.
Portfolio Ratio 1 Yr 5 Yr Incept. 1 Yr 5 Yr Incept.
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US 1000 0.39%* 16.50 4.42 5.03 15.80 3.82 4.44
US 1500 Small-Mid 0.39%* 25.14 8.10 24.80 7.78
Emerging Markets 0.85% 16.64 2.26 16.20 1.76
Developed Markets ex-U.S. 0.75% 11.05 -2.89 10.07 -3.57
Developed Markets ex-U.S. S/M 0.75% 18.72 1.95 17.51 1.24
Asia Pacific ex-Japan 0.80% 22.72 7.50 21.73 6.20
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As of March 31, 2011 Annualized Returns (%)
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After Tax Sold Market Price
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PowerShares FTSE RAFI® Exp.
Portfolio Ratio 1 Yr 5 Yr Incept. 1 Yr 5 Yr Incept.
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US 1000 0.39%* 10.68 3.41 3.95 16.47 4.42 5.09
US 1500 Small-Mid 0.39%* 16.31 6.80 25.13 8.09
Emerging Markets 0.85% 10.80 1.60 15.93 1.61
Developed Markets ex-U.S. 0.75% 7.12 -2.85 12.23 -2.74
Developed Markets ex-U.S. S/M 0.75% 11.83 1.21 16.46 1.49
Asia Pacific ex-Japan 0.80% 14.69 5.59 23.33 7.78
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Inception Dates
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US 1000 12/19/2005 Emerging Markets 9/27/2007 Developed Markets 9/27/2007
ex-U.S. S/M
US 1500 9/20/2006 Developed Markets 6/25/2007 Asia Pacific 6/25/2007
Small-Mid ex-U.S. ex-Japan
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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 0.45% and 0.51%,
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. 30, 2011.
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.
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 $60 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.
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.
Not FDIC Insured | May Lose Value | No Bank Guarantee
Investing in securities of small and medium-sized companies may
involve greater risk than is customarily associated with investing
in large companies.
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.
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. The RAFI® Fundamental US Style Index Series is calculated by
Dow Jones Indexes, the marketing name and a licensed trademark of
CME Group Index Services LLC ("CME Indexes"). "Dow Jones Indexes"
is a service mark of Dow Jones Trademark Holdings LLC ("Dow
Jones"). The RAFI® Fundamental US Style Index Series is not
sponsored, endorsed, sold or promoted by CME Indexes, Dow Jones or
their respective affiliates, and CME Indexes, Dow Jones and their
respective affiliates make no representation regarding the
advisability of investing in such product(s).
Neither CME Indexes nor Research Affiliates, LLC make any
warranties, express or implied, to any of their customers nor
anyone else regarding the accuracy or completeness of any data
related to the RAFI® Fundamental US Style Index Series. All
information is provided for information purposes only. Neither CME
Indexes nor Research Affiliates, LLC accept any liability for any
errors or any loss arising from the use of this information.
"Fundamental Index®" and/or "Research Affiliates Fundamental
Index®" and/or "RAFI" and/or all other RA trademarks, trade names,
patented and patent-pending concepts are the exclusive property of
Research Affiliates, LLC.
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.
Note: Not all products available through all firms.
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.
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