Invesco PowerShares Capital Management LLC, a leading global
provider of exchange-traded funds (ETFs), announced today the
anticipated listing of the PowerShares S&P 500® Downside Hedged
Portfolio (PHDG) for December 6, 2012 on the NYSE Arca. The new ETF
will be a liquid alternative solution providing investors broad US
equity market exposure with a downside hedge by dynamically
allocating to VIX futures and cash depending on market volatility
trends. PHDG will have an expense ratio of 0.39%.
"Today, advisors and their clients are just as interested in
protecting their assets as they are in generating positive
returns," said Ben Fulton, Invesco PowerShares managing director of
global ETFs. "The PowerShares S&P 500® Downside Hedged
Portfolio (PHDG) will expand our range of liquid alternative
strategies, and underscores our commitment to provide
groundbreaking ETFs that advisors and investors can utilize to
reduce correlation, lower volatility, and serve as a downside hedge
in falling markets."
"The PowerShares S&P 500® Downside Hedged Portfolio is among
a new breed of investments in the alternative space" added Lorraine
Wang, Invesco PowerShares senior vice president of new product
development. "Unlike many alternative funds that seek to mitigate
volatility by going long and short at the same time, PHDG will use
a rules-based approach to dynamically shift its exposure among the
S&P 500 Index, VIX futures and cash, depending on market
volatility. The overall effect of the liquid alternative strategy
is a portfolio with potentially below-average risk that may rise in
down markets while potentially participating on the upside."
The PowerShares S&P 500® Downside Hedged Portfolio (PHDG) is
an actively managed ETF that seeks to achieve positive total
returns in rising or falling markets that are not directly
correlated to broad equity or fixed income market returns. PHDG
seeks to achieve its investment objective by using a quantitative,
rules-based strategy designed to provide returns that correspond to
the performance of the S&P 500® Dynamic VEQTOR Index.
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 $74 billion as of Sept
30, 2012, 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 Ltd. is a leading independent global investment
management firm, 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 firm is listed on the New
York Stock Exchange under the symbol IVZ. Additional information is
available at www.invesco.com.
Liquid alternative strategies are generally mutual funds and
exchange-traded products that employ various hedging techniques
that seek to provide some liquidity in the alternatives space.
Not FDIC Insured | May Lose Value | No Bank Guarantee
The S&P 500® Dynamic VEQTOR Index provides investors with
broad equity market exposure with an implied volatility hedge by
dynamically allocating between equity, volatility and cash. The
index allows investors to receive exposure to the equity and
volatility of the S&P 500 Index in a dynamic framework.
There are risks involved with investing in ETFs, including
possible loss of money. Index-based ETFs are not actively managed.
Actively managed ETFs do not necessarily seek to replicate the
performance of a specified index. Both index-based and actively
managed ETFs are subject to risks similar to stocks, including
those related to short selling and margin maintenance. Ordinary
brokerage commissions apply.
The Chicago Board Options Exchange (CBOE) can make
methodological changes to the calculation of the VIX Index that
could affect the value of the futures contracts on the VIX Index
and may affect the value of your investment.
The contracts included in the VIX Index historically have traded
in "contango" markets, resulting in a roll cost, which could
adversely affect the value of the Shares. At any given time, the
percentage increase in the amount of VIX Index Related Instruments
in which the Fund invests may be less than the percentage increase
in the VIX Index.
The Fund may engage in investment transactions, or enter into
futures contracts. Because futures contracts project price levels
in the future, market circumstances may cause a discrepancy between
the price of a stock index future and the movement in the
underlying index. In the event of adverse price movements, the Fund
would be required to make daily cash payments to maintain its
required margin.
The Fund's use of derivatives may increase the amount of risk
associated with the Fund and may magnify changes in the Fund's
value positively and negatively. The use of this fund may not be
suitable for all investors.
ETNs are short-term investments and if leveraged may have
amplified losses or gains. ETNs do not provide principal protection
and may or may not make periodic coupon payments. ETNs are subject
to credit risk and the value of the ETN may drop due to a downgrade
in the issuer's credit rating, despite the underlying market
benchmark or strategy remaining unchanged.
The Subsidiary is not registered under the Investment Company
Act of 1940 and is not subject to all of the investor protections
of the Investment Company Act of 1940. Thus the Fund, as an
investor in the Subsidiary, would not have all of the protections
offered to investors in registered investment companies.
The Fund will gain most of its exposure to the futures markets
by entering into VIX Index futures. The Fund intends to restrict
its income from VIX Index futures that do not generate qualifying
income, to a maximum of 10% of its gross income. However, there is
no guarantee the Fund will be successful in doing so, and failure
to comply with this restriction would have significant negative
consequences to Fund shareholders.
The Fund currently intends to effect creations and redemptions
principally for cash, rather than principally in-kind because of
the nature of the Fund's investments. As such, investments in the
Fund may be less tax efficient than investments in ETFs that create
and redeem in-kind.
The Fund is designed to achieve positive total returns in rising
or falling markets. Significant short-term price movements could
adversely affect the performance of the Fund and cause substantial
losses. Note: Not all products available through all firms
Invesco Distributors, Inc. is the distributor
of the PowerShares Actively Managed Exchange-Traded Fund
Trust.
S&P® is a registered trademark of Standard & Poor's
Financial Services LLC (S&P) and Dow Jones® is a registered
trademark of Dow Jones Trademark Holdings LLC (Dow Jones). These
trademarks have been licensed for use by S&P Dow Jones Indices
LLC. S&P® and Standard & Poor's® are trademarks of S&P
and Dow Jones® is a trademark of Dow Jones. These trademarks have
been sublicensed for certain purposes by Invesco PowerShares
Capital Management LLC (Invesco PowerShares). The Index is a
product of S&P Dow Jones Indices LLC and/or its affiliates and
has been licensed for use by Invesco PowerShares. The Fund is not
sponsored, endorsed, sold or promoted by S&P Dow Jones Indices
LLC, Dow Jones, S&P or their respective affiliates and neither
S&P Dow Jones Indices LLC, Dow Jones, S&P or their
respective affiliates make any representation regarding the
advisability of investing in such product(s).
PowerShares® is a registered trademark of Invesco PowerShares
Capital Management LLC. Invesco PowerShares Capital Management LLC
and Invesco Distributors, Inc. are indirect, wholly owned
subsidiaries of Invesco Ltd.
An investor should consider the Fund's
investment objective, risks, charges and expenses carefully before
investing. The prospectus contains this and other information about
the Fund. For this and more complete information about the Fund
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 Cohn & Wolfe
212.798.9864 Email Contact Bill Conboy 303-415-2290 Email
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