Invesco PowerShares Leading the Intelligent ETF Revolution(r)
Welcome, Guest
Sign In  |  Register
Search
 
 
 
Emerging Market Growth Under Exposure to EMs? Rethinking EM Investing
For much of the last 10 years, emerging market (EM) economies have grown at a faster rate than the U.S. economy and the IMF expects they will continue to do so.a Less than 2% of total mutual fund and ETF assets fall into the category of emerging markets.b

91% of those emerging market assets are in equity funds.b
Investors might do well to consider not only increasing their allocation to emerging markets, but also diversifying that allocation beyond just equity.
Historical & Forecasted GDP Growtha ETF & Mutual Fund EM Assets Click to learn more about:
FTSE EM Avg. (GDP Weighted)
G7 (GDP Weighted)
PowerShares Emerging Markets Sovereign Debt Portfolio (PCY)


PowerShares Emerging Markets Infrastructure Portfolio (PXR)
a Source: IMF, as of June 2009
G7 is comprised of Canada, France, Germany, Italy, Japan, the United Kingdom and the United States.
b Source: Morningstar, as of August 2009
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 those of stocks, including those related to short selling and margin maintenance. Ordinary brokerage commissions may apply.
Investments in the securities of issuers in emerging market countries involve risks not associated with investments in the securities of issuers in developed countries. Emerging markets are subject to greater market volatility, lower trading volume, political and economic instability, uncertainty regarding the existence of trading markets and more governmental limitations on foreign investment than more developed markets. In addition, securities in emerging markets may be subject to greater price fluctuations than securities in more developed markets.
An investment in the securities of non-U.S. issuers involves risks beyond those associated with investments in U.S. securities, including, but not limited to: greater market volatility, the availability of less reliable financial information, higher transactional and custody costs, taxation by foreign governments, decreased market liquidity, political instability, negative impact of change in currency exchange rates or foreign governmental regulation.
Investments in sovereign debt securities involve special risks. The governmental authority that controls the repayment of the debt may be unwilling or unable to repay the principal and/ or interest when due in accordance with the terms of such securities due to: the extent of its foreign reserves; the availability of sufficient foreign exchange on the date a payment is due; the relative size of the debt service burden to the economy as a whole; or the government debtor's policy toward the International Monetary Fund and the political constraints to which a government debtor may be subject. If an issuer of sovereign debt defaults on payments of principal and/or interest, the Fund may have limited legal recourse against the issuer and/ or guarantor. In certain cases, remedies must be pursued in the courts of the defaulting party itself, and the Fund's ability to obtain recourse may be limited. Government obligors in emerging market countries are among the world's largest debtors to commercial banks, other governments, international financial organizations and other financial institutions. Historically, certain issuers of the government debt securities in which the Fund may invest have experienced substantial difficulties in meeting their external debt obligations, resulting in defaults on certain obligations and the restructuring of certain indebtedness. Such restructuring arrangements have included obtaining additional credit to finance outstanding obligation and the reduction and rescheduling of payments of interest and principal through the negotiation of new or amended credit agreements. Please see the prospectus for more complete information regarding the risks of investing in emerging markets and sovereign debt.
Deutsche Bank Securities Inc. is the Index Provider for the PowerShares Emerging Markets Sovereign Debt Portfolio. DB is not affiliated with the Trust, the Advisor or the Distributor. The Advisor has entered into a license agreement with the Index Provider to use the Deutsche Bank Emerging Market U.S. Dollar Liquid Balanced Index. The PowerShares Emerging Markets Sovereign Debt Portfolio is entitled to use the Deutsche Bank Emerging Market U.S. Dollar Liquid Balanced Index pursuant to a sublicensing arrangement with the Advisor.
S-Network Global Indexes, LLCSM and S-NETWORK EMERGING INFRASTRUCTURE BUILDERS INDEXSM are service marks of S-Network Global Indexes LLC and have been licensed for use by Invesco PowerShares Capital Management LLC. The PowerShares Emerging Markets Infrastructure Portfolio is not sponsored, endorsed, sold or promoted by S-Network Global Indexes LLC and S-Network Global Indexes LLC makes no representation regarding the advisability of investing in the PowerShares Emerging Markets Infrastructure Portfolio. Invesco PowerShares Capital Management LLC is not affiliated with S-Network Global Indexes LLC.
Shares are not individually redeemable and owners of the shares may acquire those shares from the Funds and tender those shares for redemption to the Funds in Creation Unit aggregations only, typically consisting of 50,000 shares.
©2010 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 Aim Distributors, Inc. are indirect, wholly owned subsidiaries of Invesco Ltd.
Invesco Aim 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