The PowerShares VRDO Tax-Free Weekly Portfolio (Fund) is based on the Bloomberg US Municipal AMT-Free Weekly VRDO Index (Index). The Fund generally will invest at least 80% of its total assets in variable rate demand obligation (VRDO) bonds that are exempt from federal income tax with interest rates that reset weekly, which comprise the Underlying Index. The Index is comprised of municipal securities issued in the primary market as VRDOs.
VRDOs are floating-rate bonds that provide investors with tax-exempt income. VRDOs are generally purchased at par. When they are put back to an investment dealer, the investor generally receives par plus accrued interest. The Fund and the Index are rebalanced and reconstituted monthly. |
 |
Date |
|
5/23/2013 |
|
|
Price |
|
24.98 |
|
|
Bid/Ask Midpoint  |
|
24.99 |
|
| |
|
NAV |
|
24.99 |
|
|
Bid/Ask Prem/Disc |
|
- |
|
|
Bid/Ask Prem/Disc |
|
- |
|
|
|
|
|
|
| Index History (%) | YTD | 1 Year | 3 Year | 5 Year | 10 Year | Fund Inception |
| Bloomberg US Municipal AMT-Free Weekly VRDO Index | 0.03 | 0.18 | | | | |
| Barclays Municipal 1 Year Index | 0.28 | 0.79 | 1.18 | 2.03 | 2.32 | 2.37 |
| Barclays U.S. Aggregate Index | -0.12 | 3.77 | 5.52 | 5.47 | 5.02 | 5.72 |
| Fund History (%) | YTD | 1 Year | 3 Year | 5 Year | 10 Year | Fund Inception |
| NAV | -0.03 | 0.06 | 0.32 | 0.94 | | 1.10 |
| After Tax Held | -0.04 | 0.06 | 0.32 | 0.93 | | 1.10 |
| After Tax Sold | -0.02 | 0.08 | 0.32 | 0.94 | | 1.10 |
| Market Price | -0.11 | -0.06 | 0.28 | 0.90 | | 1.08 |
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. Performance data quoted represents past performance, which is not a guarantee of future results. Investment returns and principal value will fluctuate, and shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than performance data quoted. After-tax returns reflect the highest federal income tax rate but exclude state and local taxes. Fund performance reflects fee waivers, absent which, performance data quoted would have been lower. After Tax Held and After Tax Sold are based on NAV.
|
 |
| As of 3/31/2013 |
 |
| Fund inception precedes index data — data begins 7/31/2010, the month end following most recent index publication date. |
| An investor cannot invest directly in an index. The results assume that no cash was added to or assets withdrawn from the Index. Index returns do not represent Fund returns. The Index does not charge management fees or brokerage expenses, nor does the Index lend securities, and no revenues from securities lending were added to the performance shown. |
 |
| |
Bid/Ask MidPoint Above NAV |
Bid/Ask Midpoint Below NAV |
Quarter
Ending |
Days |
50-99
Basis Points |
100-199
Basis Points |
H200
Basis Points |
50-99
Basis Points |
100-199
Basis Points |
H200
Basis Points |
| 3/31/2013 |
60 |
0 |
0 |
0 |
0 |
0 |
0 |
| 12/31/2012 |
62 |
0 |
0 |
0 |
0 |
0 |
0 |
| 9/30/2012 |
63 |
0 |
0 |
0 |
0 |
0 |
0 |
| 6/30/2012 |
63 |
0 |
0 |
0 |
0 |
0 |
0 |
| Year Ended 2012 |
250 |
0 |
0 |
0 |
0 |
0 |
0 |
| Fund Inception: 11/15/2007 |
Shareholders may pay more than net asset value when they buy Fund shares and receive less than net asset value when they sell those shares, because shares are bought and sold at current market prices. Performance data quoted represents past performance, which is not a guarantee of future results. |
|
Fund Holdings subject to change |
|
| | | Coupon Rate | Maturity Date | Rating† | Weight |
|
1.
| Illinois Finance Authority | 0.27% | 01/01/2048 | NR/A1 | 7.40% |
|
2.
| Pittsburgh Water & Sewer Authority | 0.32% | 09/01/2033 | AA-/A2 | 7.02% |
|
3.
| St Joseph Hospital Finance Authority/MI | 0.20% | 01/01/2035 | AA-/A2 | 6.07% |
|
4.
| Florida Department of Environmental Protection | 0.35% | 07/01/2027 | AA-/A1 | 5.07% |
|
5.
| Charlotte-Mecklenburg Hospital Authority | 0.30% | 01/15/2043 | AA-/Aa3 | 4.75% |
|
6.
| State of Illinois | 2.00% | 10/01/2033 | A-/A2 | 4.75% |
|
7.
| Delaware Valley Regional Financial Authority | 0.35% | 12/01/2020 | A+/Baa1 | 4.75% |
|
8.
| Sevier County Public Building Authority | 0.22% | 06/01/2026 | NR/Aa1 | 4.46% |
|
9.
| Triborough Bridge & Tunnel Authority | 0.22% | 01/01/2019 | AA-/A2 | 4.30% |
|
10.
| Abag Finance Authority for Nonprofit Corps | 0.17% | 08/01/2024 | AAA/Aa3 | 4.27% |
| | % of Fund |
| 0 - 1 years | 0.17 |
| 1 - 5 years | 1.85 |
| 5 - 10 years | 16.68 |
| 10 - 15 years | 19.08 |
| 15 - 20 years | 8.68 |
| 20 - 25 years | 37.21 |
| 25 years and over | 16.32 |
| | |
†Credit ratings are assigned by Nationally Recognized Statistical Rating Organizations based on assessment of the credit worthiness of the underlying bond issuers. The ratings range from AAA (highest) to D (lowest) and are subject to change. Not rated indicates the debtor was not rated, and should not be interpreted as indicating low quality. Futures and other derivatives are not eligible for assigned credit ratings by any NRSRO and are excluded from quality allocations. For more information on rating methodologies, please visit the following NRSRO websites: standardandpoors.com and select "Understanding Ratings" under Rating Resources and moodys.com and select "Rating Methodologies" under Research and Ratings.
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 Fund’s return may not match the return of the Underlying Index.
Municipal securities may be affected by political changes as well as uncertainties in the municipal market related to taxation, legislative changes or the rights of municipal security holders. The market for municipal bonds may also be less liquid than for taxable bonds.
There may not be an active secondary market with respect to particular variable rate instruments in which the Fund invests, which could make it difficult for the Fund to dispose of a variable rate instrument if the issuer and/or the Remarketing Agent defaulted on its payment obligation or during periods that the Fund is not entitled to exercise its demand rights, and the Fund could, for these or other reasons, suffer a loss with respect to such instruments.
Municipal insurance doesn’t protect against losses in the fund.
The Fund may invest in fixed-income securities, such as notes adn bonds, which carry interest rate and credit risk. Interest rate risk refers to the risk that bond prices generall fall as interest rates rise and vice versa. Credit risk is the risk of loss on a n 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.
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.
There is no guarantee that the Fund’s income will be exempt from federal or state income taxes.
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 redeem in-kind.
The Barclays Municipal 1Year Index is an unmanaged index of municipal bonds with a remaining maturity of 1-2 years. The Barclays U.S. Aggregate Index is an unmanaged index considered representative of the U.S. investment-grade, fixed-rate bond market.
The Bloomberg US Municipal AMT-Free Weekly VRDO Index is a trademark and service mark of Bloomberg and has been licensed for use by the Adviser. Bloomberg is not affiliated with the Adviser or the PowerShares VRDO Tax-Free Weekly Portfolio. Bloomberg does not: (i) approve, endorse, review or recommend the Adviser or the PowerShares VRDO Tax-Free Weekly Portfolio, (ii) guarantee the correctness or completeness of the Bloomberg US Municipal AMT-Free Weekly VRDO Index or other information furnished in connection with the Bloomberg US Municipal AMT-Free Weekly VRDO Index, (iii) warrant, expressly or impliedly, the results to be obtained by the Adviser, the Adviser's customers, owners of the PowerShares VRDO Tax-Free Weekly Portfolio, or any other person or entity from the use of the Bloomberg US Municipal AMT-Free Weekly VRDO Index or any data included therein.
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