| Diversification |
| Because PowerShares QQQ™ tracks the performance of NASDAQ's largest 100
non-financial companies, it offers built-in diversity among multiple industries, without
incurring the cost of buying shares of each company individually. |
| Tax Advantaged Product Design |
| Taxes may be one of the most critical and overlooked factors in wealth creation over
time. The ETF product structure allows shareholders to defer some or possibly all capital
gains until they sell their shares. |
| Low Ownership Cost |
| ETFs provide lower ownership cost because of their efficient structure. PowerShares have
established expense caps to make the cost of ownership clear and straightforward for
investors. Ordinary brokerage commissions apply. |
| Flexibility, Transparency |
| PowerShares QQQ™ trades like a stock and may be bought or sold at intraday prices
throughout the trading day. In addition, several flexibility advantages accrue to the
fund including short selling on a downtick and the availability to trade numerous derivative products tied to
PowerShares QQQ™. |
| Near Instant Liquidity, Trades at or Close to NAV |
| PowerShares may be bought and sold on the exchange at any time during market hours.
Although shares are not individually redeemable directly from the Fund itself, authorized
participants may acquire shares and tender shares for redemption, through creation unit
aggregations. ETFs are not closed-end funds and typically trade at or near net asset values. |
| [back to top] |
| |
 |
| Long-Term Investing |
| The diversification potential of PowerShares QQQ™ may help minimize the impact
of adverse price movement in any single industry or sector. Also, as a large-cap
growth security, PowerShares QQQ™ may be a solid choice for a 401(k), retirement
account or other type of long-term investment strategy. |
| Hedging Investments |
| Of all the characteristics that make a security desirable for hedging an investment,
liquidity is perhaps the most important. The ability of a security to find buyers or
sellers, regardless of conditions, helps minimize risk in adverse market situations
whereas a less-liquid security may become difficult to trade and pose greater
investment risk. With a full suite of
derivative products available in combination with each other or with PowerShares
QQQ™ itself, both retail and institutional investors are able to design a wide
range of low-cost hedges uniquely tailored to their portfolio requirements. |
| Short Selling |
| PowerShares QQQ™, unlike common stock, is exempt from the SEC rule that
prohibits selling short on a downtick—when a security's last sale price is lower than
the preceding sale price. In other words, you are allowed to sell PowerShares QQQ™
short after its price is already going down, allowing you to react more effectively to
downturns in the market or the NASDAQ-100 Index®. |
| Trading on Margin |
| PowerShares QQQ™ may be purchased on margin, generally subject to the same
terms that apply to common stocks. You should contact your broker regarding
initial and maintenance margin requirements. |
| [back to top] |
| ETFs are subject to investment risk similar to those of stocks including those regarding short-selling, margin account maintenance and possible loss of principal. |
| NASDAQ®, NASDAQ-100®, NASDAQ-100 Index®, NASDAQ-100 Index Tracking Stock® and QQQ® are registered trademarks of The NASDAQ Stock Market, Inc. (which with its affiliates is referred to as the "Corporations") and are used under license to PowerShares Capital Management LLC. The Product(s) have not been passed on by the Corporations as to their legality or suitability. The Product(s) are not issued, endorsed, sold, or promoted by the Corporations. The Corporations make no warranties and bear no liability with respect to the product(s). |
| 1 As of 12.31.05. Source: ADP Brokerage Services |
