Invesco PowerShares to List S&P 500(R) Downside Hedged ETF
CHICAGO, IL -- (Marketwire) -- 12/03/12 -- 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(R) 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(R) 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(R) Downside Hedged Portfolio is among a n
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(R) 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(R) Dynamic VEQTOR Index.
Invesco PowerShares Capital Management LLC is Leading the Intelligent
ETF Revolution(R) 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
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(R) 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
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
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
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(R) is a registered trademark of Standard & Poor's Financial
Services LLC (S&P) and Dow Jones(R) 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(R) and Standard &
Poor's(R) are trademarks of S&P and Dow Jones(R) 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(R) 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.
Cohn & Wolfe
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