InvescoPowerShares.com - BuyWrite Portfolios

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On June 12, PowerShares will expand its lineup of BuyWrite ETFs to include the PowerShares NASDAQ-100 BuyWrite Portfolio (NASDAQ:PQBW). PowerShares BuyWrite ETFs provide investors cost-efficient access to buy-write options strategies on two of the most widely used benchmarks in the world—the S&P 500 Index, and now the NASDAQ 100 Index.

Buy-write strategies are often used to reduce volatility under certain market conditions, as well as provide additional income to a portfolio through call option premiums. In down markets, for example, the option premiums received mitigates the price decline in an equity portfolio. The trade-off is that in strong equity markets, the upside potential of the equity investment is reduced as the option is exercised above the strike price.

The options investment strategy used by the Funds is not suitable for all investors.

There are risks involved with investing in ETFs including possible loss of money. Shares are not actively managed and are subject to risk similar to stocks and covered call options, as well as those risks related to short selling and margin maintenance. Shares are not FDIC insured, may lose value and have no bank guarantee. Additionally, there are unique tax consequences associated with an investment in this Fund. Please see the prospectus for more complete risk and tax information.

There are additional risks involved in writing (selling) covered call options on the stocks of the NASDAQ-100 and S&P 500 (Indexes). The Funds, by writing covered call options on these Indexes, will give up the opportunity to benefit from potential increases in the value of the indexes stocks above the exercise prices of the options, but will continue to bear the risk of declines in the value of the Indexes. The premiums received from the options may not be sufficient to offset any losses sustained from the volatility of the Indexes over time. In addition, exchanges may suspend trading of options in volatile markets. If trading is suspended, the Funds may be unable to write (sell) options at times that may be desirable or advantageous for the Funds to do so. Trading suspensions may limit the Funds' ability to achieve its investment objectives. The Funds may be required to sell investments from its portfolio to make cash settlement on (or transfer ownership of an Index stock to physically settle) any options that are exercised. Such sales (or transfers) may occur at inopportune times, and the Funds may incur transaction costs that increase its expenses.

If you would like to get in touch with an advisor familiar with PowerShares, call 800.983.0903.