CHICAGO, IL--(Marketwired - Jul 9, 2013) - Invesco PowerShares Capital Management LLC, a leading global provider of exchange-traded funds (ETFs), announced today the PowerShares Fundamental suite of ETFs recently passed the $5 billion assets under management (AUM) mark. Invesco PowerShares offers ETFs tracking Fundamentals Weighted indices trading in the US, Canada and Europe.
"Invesco PowerShares has been focused on providing investors with the broadest and most diverse family of 'smart beta' ETFs since the firm was founded," said Andrew Schlossberg, head of global ETFs.1 "Invesco PowerShares pioneered Fundamentals Weighted ETFs introducing the first broad-based US 1000 portfolio back in 2005, followed by international portfolios in 2007, and the first fixed-income portfolio in 2010. We are pleased to reach this $5 billion milestone for the PowerShares Fundamentals Weighted ETFs. Investors are readily adopting Fundamental strategies along with low volatility, high beta, and momentum-based ETFs as potential effective smart beta portfolio solutions." 2
Invesco PowerShares RAFI Fundamentals Weighted Portfolios are based on the Research Affiliates Fundamental Index methodology. This 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 Fundamental Index methodology is thought to be a more robust means of capturing a company's true economic footprint.
"The PowerShares Fundamental ETFs seek to provide investors with improved risk-adjusted returns compared to cap-weighted benchmarks," added John Feyerer, head of product strategy & research at Invesco PowerShares.3 "Our two flagship ETFs in this suite, the PowerShares FTSE RAFI US 1000 Portfolio (PRF) along with the PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ), its US 1500 complement, have established five-year and since inception track records that demonstrated their effectiveness over varying market cycles. We believe the PowerShares Fundamental ETFs provide investors an important alternative to passive cap-weighted strategies, and also represent great value compared to actively managed portfolios when relative performance and fees are considered."
"We are proud to partner with Invesco PowerShares on this suite of ETFs," said Michael Larsen, global head of affiliate relations at Research Affiliates, LLC. "In an era of lower expected returns, it is important to provide investors better tools for their toolkit."
Invesco PowerShares currently has 28 equity and four fixed-income ETFs based on the RAFI Fundamental Index methodology.4
Performance as of June 30, 2013
|PowerShares ETF (Ticker) |
|Exp. Ratio (%)||Lipper Classifi-cation||Lipper Classifi-cation Median Exp. Ratio (%)||Since |
(%) Lipper Rank5
|Since Incept. Annual-ized Perfor-mance |
|Since Incept. Risk Adj. Return3|
|PowerShares FTSE RAFI US 1000 Portfolio (PRF)||12/19/05||0.39||Large-Cap Core||1.01||8 (49 of 624)||6.93%||0.36|
|Russell 1000 Index||5.70%||0.35|
|PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ)||9/20/06||0.39||Small-Cap Core||1.14||10 (43 of 476)||8.38%||0.34|
|Russell 2000 Index||5.76%||0.26|
Sources: Bloomberg and Lipper, as of June 30, 2013. Past performance does not guarantee future results.
1 Smart beta is an attempt to implement a methodology or strategy to provide an alternative market/index beta that seeks to offer a benefit to investors.
2 Volatility is the annualized standard deviation of index returns. Beta is a measure of relative risk and the slope of regression.
3 Risk adjusted return calculated by dividing annualized return by the standard deviation of returns.
4 As of June 30, 2013. The number of RAFI Fundamental Index methodology products mentioned includes those that are not available to US investors.
5 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. An investor cannot invest directly in an index.
Standardized Performance as of June 30, 2013
|Annualized Return (%)|
|NAV||After Tax Held|
|PowerShares FTSE RAFI Portfolio||Net Exp. Ratio (%)*||1 Yr||5 Yr||Incept.||1 Yr||5 Yr||Incept.|
|US 1500 Small-Mid||0.39||28.39||12.76||8.39||27.81||12.52||8.19|
|Annualized Return (%)|
|After Tax Sold||Market Price|
|PowerShares FTSE RAFI Portfolio||1 Yr||5 Yr||Incept.||1 Yr||5 Yr||Incept.|
|US 1500 Small-Mid||16.40||10.21||6.70||28.71||12.78||8.41|
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 0.43% and 0.44%, 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, 2013. 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 $78 billion as of June 30, 2013, PowerShares ETFs trade on both US 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.
Note: Not all products are available through all firms.
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 Funds' returns may not match the returns of their Underlying Indexes.
Investing in securities of small and medium-sized companies may involve greater risk than is customarily associated with investing in large companies.
Investments focused in a particular industry are subject to greater risk, and are more greatly impacted by market volatility, than more diversified investments.
The Russell 1000® Index and the Russell 2000® Indexes are unmanaged indexes considered representative of large-cap stocks and small-cap stocks, respectively. The Russell 1000® Index and the Russell 2000® Index are trademark/ service marks of the Frank Russell Co. Russell® is a trademark of the Frank Russell Co.
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.
Shares are not FDIC insured, may lose value and have no bank guarantee.
Fundamental Index® and RAFI® trade names, patented and patent pending concepts are the exclusive property of Research Affiliates®, LLC. Fundamental Index® and RAFI® are not affiliated with Invesco Ltd.
Invesco Distributors, Inc. is the distributor of the PowerShares Exchange-Traded Fund Trust. Invesco Distributors Inc. is not affiliated with Research Affiliates.
PowerShares® is a registered trademark of Invesco PowerShares Capital Management LLC (Invesco PowerShares). Invesco PowerShares and Invesco Distributors, Inc. are indirect, wholly owned subsidiaries of Invesco Ltd.
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.