Invesco PowerShares
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The PowerShares Convertible Securities Portfolio seeks investment results that correspond (before fees and expenses) generally to the price and yield of The BofA Merrill Lynch All U.S. Convertibles IndexSM (Index).
The Fund will invest at least 80% of its total assets in the component securities that comprise the Index. The Index is designed to track the performance of U.S. dollar-denominated investment grade and non-investment grade convertible securities sold into the U.S. market and publicly traded in the United States, including the over-the-counter (OTC) market.
The Case for Investing in Convertible Bonds
Normalized Index ReturnsAttractive YieldA Par Value with
Upside Equity Participation
Convertible bonds combine the features of stocks and bonds in a single investment, and have historically provided an attractive risk reward profile:
Normalized Index Returns
  Convertibles I.G. Corps High Yield Equities
Return (%) 8.96 7.19 8.21 8.72
Standard Deviation 0.13 0.06 0.09 0.16
Beta vs. S&P 500 0.69 0.09 0.36 1.00
Source: Bloomberg L.P., Jan. 1, 1995 - March 31, 2011
Past performance cannot guarantee future results. An investment cannot be made directly in an index. Index returns do not represent Fund returns.
Investment-grade (I.G.) corporate bonds are represented by the BofA Merrill Lynch U.S. Corporate Master Index. High-yield bonds are represented by the BofA Merrill Lynch U.S. High Yield Master II Index. Convertibles are represented by the BofA Merrill Lynch All U.S. Convertibles Index. Data for the 10-Yr Treasury Yield is from the BofA Merrill Lynch U.S. Treasury Current 10 Yr Index. Equities are represented by the S&P 500, which is an unmanaged index considered representative of the U.S. stock market.
Download the Convertible Securities Portfolio Investor Guide
Fund Links:
CVRT Prospectus
CVRT Overview
The BofA Merrill Lynch All U.S. Convertibles Index
Launched in 1995, the BofA Merrill Lynch All U.S. Convertibles Index is designed to be an unbiased proxy for the broad U.S. convertible market.
Download the investor guide to view more details.
Volatility is the annualized standard deviation of index returns. Beta is a measure of relative risk and is the slope of regression.
There are risks involved with investing in ETFs, including possible loss of money. Shares are not actively managed and are subject to risks including those regarding short selling and margin maintenance requirements. Ordinary brokerage commissions may apply.
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 100,000 shares.
The value of convertible securities tends to vary with fluctuations in the market value of the underlying securities. Convertible securities are subject to the risk of default by the issuer.
The Fund may invest in fixed-income securities, such as notes and bonds, which carry interest rate and credit risk. Interest rate risk refers to the risk that bond prices generally fall as interest rates rise and vice versa. Credit risk is the risk of loss on an investment due to the deterioration of an issuer's financial health.
The Fund's underlying securities may be subject to call risk, which may result in the Fund having to reinvest the proceeds at lower interest rates, resulting in a decline in the Fund's income.
Non-investment grade securities have additional risks, including higher default risk and decreased market liquidity.
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.
The Fund is considered non-diversified and may be subject to greater risks than a diversified fund.
Foreign securities have additional risks, including exchange-rate changes, decreased market liquidity, political instability and taxation by foreign governments.
©2012 Invesco PowerShares Capital Management LLC
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.
Invesco Distributors, Inc. is the distributor of the PowerShares Exchange-Traded Fund Trust, the PowerShares Exchange-Traded Fund Trust II, the PowerShares India Exchange-Traded Fund Trust and the PowerShares Actively Managed Exchange-Traded Fund Trust.
Investment products offered are: Not FDIC Insured  • No Bank Guarantee  • May Lose Value
View the Legal Notice