The PowerShares VRDO Tax-Free Weekly Portfolio (Fund) is based on the Bloomberg US Municipal AMT-Free Weekly VRDO Index (Index). The Fund will normally invest at least 80% of its total assets in securities that comprise the Index and generally expects to invest at least 90% of its total assets. The Index is comprised of municipal securities issued in the primary market as Variable Rate Demand Obligations (VRDOs) whose interest rates are reset weekly.
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. |
 |
Date |
|
2/3/2012 |
|
|
Price |
|
24.99 |
|
|
Bid/Ask Midpoint  |
|
25.00 |
|
| |
|
NAV |
|
25.00 |
|
|
Bid/Ask Prem/Disc |
|
-0.01 |
|
|
Bid/Ask Prem/Disc |
|
-0.02% |
|
|
|
|
|
|
| Index History (%) | 1 Year | 3 Year | 5 Year | 10 Year | Fund Inceptiona |
| Bloomberg US Municipal AMT Free Weekly VRDO Index | 0.25 | | | | |
| Barclays Capital Municipal 1 Yr Index | 1.58 | 2.07 | 3.03 | 2.64 | 2.83 |
| Barclays Capital US Aggregate Index | 7.84 | 6.77 | 6.50 | 5.78 | 6.65 |
| S&P 500 Index | 2.11 | 14.12 | -0.25 | 2.92 | -2.74 |
| Fund History (%) | 1 Year | 3 Year | 5 Year | 10 Year | Fund Inceptiona |
| NAV | 0.53 | 0.70 | | | 1.41 |
| After Tax Held | 0.34 | 0.46 | | | 0.90 |
| After Tax Sold | 0.34 | 0.45 | | | 0.91 |
| Market Price | 0.61 | 0.64 | | | 1.42 |
| aFund and underlying Index returns are based on the inception date of the Fund. Returns for the benchmark indexes are based on the closest month end to the Fund's inception date. |
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 12/31/2011 |
 |
| 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 |
| 12/31/2011 |
63 |
0 |
0 |
0 |
0 |
0 |
0 |
| 9/30/2011 |
64 |
0 |
0 |
0 |
0 |
0 |
0 |
| 6/30/2011 |
63 |
0 |
0 |
0 |
0 |
0 |
0 |
| 3/31/2011 |
62 |
0 |
0 |
0 |
0 |
0 |
0 |
| Fund Inception: 11/15/2007 |
|
Fund Holdings subject to change |
|
| | | Coupon Rate | Maturity Date | Rating† | Weight |
|
1.
| HOUSTON TEX HIGHER ED FIN CORPHIGHER ED REV | 0.07% | 11/15/2029 | AAA/Aaa | 6.69% |
|
2.
| NJ TURNPIKE AUTHORITY | 0.27% | 1/1/2018 | AA/A3 | 6.16% |
|
3.
| AUSTIN TEX WTR & WASTEWATER FLOATER | 0.35% | 5/15/2024 | AA+/Aa2 | 5.42% |
|
4.
| CHARLOTTE FLTR | 0.40% | 1/15/2043 | AAA/AA3 | 4.80% |
|
5.
| NEW YORK ST DORM AUTH REVS NONST FLT | 0.23% | 7/1/2040 | AAA/Aa1 | 4.80% |
|
6.
| COLORADO SPRINGS COLO UTILS REV FLT | 0.30% | 11/1/2036 | AA/Aa2 | 4.60% |
|
7.
| NEW JERSEY ST TPK FLT | 0.35% | 1/1/2024 | AAA/Aa3 | 4.15% |
|
8.
| METROPOLITAN NY FLTR. | 0.35% | 11/1/2029 | AA+/Aa3 | 3.88% |
|
9.
| ILLINOIS FIN AUTH REV FLT | 0.51% | 1/1/2048 | NR/A1 | 3.74% |
|
10.
| NEW YORK STATE HOUSING FINANCE FLTR | 0.35% | 5/1/2042 | NR/AA2 | 3.65% |
| | % of Fund |
| 0 - 1 years | 0.00 |
| 1 - 5 | 2.76 |
| 5 - 10 | 21.32 |
| 10 - 15 | 13.60 |
| 15 - 20 | 18.87 |
| 20 - 25 | 15.36 |
| 25 and Over | 28.10 |
| | |
†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. 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’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.
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 50,000 Shares.
The Barclays Capital Muni 1-Year Total Return Index is an unmanaged index of municipal bonds with a remaining maturity of 1-2 years. The Barclays Capital 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.
