Invesco PowerShares Capital Management LLC, a leading provider of
exchange-traded funds (ETFs) with more than $50 billion in
franchise assets, announced today the five-year anniversary of
PowerShares Water Resources Portfolio (NYSE Arca: PHO).
The PowerShares Water Resources Portfolio is the industry's
first water ETF. Listed on Dec. 6, 2005, PHO is the largest and
most actively traded ETF providing investors with access to a
portfolio of U.S.-listed companies engaged in the water industry
and is positioned in a way that seeks to benefit from the rapidly
accelerating water resource challenges (Bloomberg LP, as of Dec. 6,
2010).
"The world's supply of clean water is increasingly in demand for
consumption, irrigation and industrial production, and we believe
the PowerShares Water Resources Portfolio (PHO) is a compelling way
for investors to capitalize on this investment theme," noted Ben
Fulton, Invesco PowerShares managing director of ETFs. "We are
pleased with the performance and success of PHO, and remain
committed to expanding investors' access to investment themes,
strategies, and asset classes that were previously difficult to
reach."
"That Invesco PowerShares had the insight to pioneer water as an
investment is a testament to their leadership in the field. It was
truly a unique combination; water as an investment theme packaged
in the then relatively new framework of a specialized ETF," said
Steve Hoffmann, designer of the Palisades Water Index.
Consistent with the long-term investment fundamentals of the
water industry, the Palisades Water Index™ underlying PHO gained a
cumulative total return of 36.10% over the five-year period,
significantly outperforming the S&P 500, which gained a total
return of 7.87% during the period as indicated in the chart below.
The comparisons are also favorable relative to the cumulative total
returns of other major market indexes calculated for the five-year
period ending Dec. 3, 2010, which saw the DJIA up 19.81%, the
Nasdaq up 32.68%, and the Russell 2000 gaining 17.72%.
As of 9/30/2010
Fund History (%) 1 Year 3 Year Fund Inception
NAV -0.25 -7.88 2.24
After Tax Held -0.46 -8.03 2.02
After Tax Sold -0.16 -6.70 1.79
Market Price -0.19 -7.88 2.00
Performance data quoted represents past performance. As stated
in the Fund's prospectus, the gross annual fund operating expense
ratio is 0.64%. 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.
"Since the launch of PHO in December of 2005, the investment
fundamentals of the global water industry have strengthened
considerably," commented Steve Hoffmann, co-founder of the
Palisades Water Indexes. "Not only has the temporal and spatial
scarcity of water increased dramatically but the stature of water
has gained as an economic, as opposed to a purely public, good.
This has important ramifications for positive institutional changes
in water governance and private investment in the water
business."
The PowerShares Water Resources Portfolio (PHO) is based on the
Palisades Water Index. The Fund will normally invest at least 90%
of its total assets in ADRs and common stocks that comprise the
Index. The Index seeks to identify a group of companies that focus
on the provision of potable water, the treatment of water, and the
technology and services that are directly related to water
consumption. The differentiating design and methodology of the
Palisades Water Index optimizes the exposure to the water industry.
The modified equal weighted portfolio is rebalanced and
reconstituted quarterly.
The PowerShares Global Water Portfolio (NYSE Arca: PIO) is the
complementary international water ETF.
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 $50 billion as of Sept.
30, 2010, PowerShares ETFs trade on both U.S. stock exchanges. For
more information, please visit us at
www.invescopowershares.com.
Invesco PowerShares is part of Invesco Ltd., 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 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 may contain securities in the water industry. Companies
engaged in this industry 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.
Foreign securities have additional risks, including
exchange-rate changes, decreased market liquidity, political
instability and taxation by foreign governments.
The Funds are 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.
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
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