|
Who is PowerShares Capital Management, LLC?
What is the relationship between PowerShares Capital Management, LLC and PowerShares XTF™?
Who are PowerShares XTF™ partners?
What are PowerShares XTF™?
How are PowerShares XTF™ different?
What are the tax benefits of Exchange-Traded Funds?
What is the minimum purchase for PowerShares XTF™?
Can I add to my PowerShares XTF™ investment?
What are the benefits that make PowerShares XTF™ so attractive?
Are there any dividend distributions?
What is an Intellidex™?
What is Dynamic Indexing?
How often is the portfolio rebalanced?
Can I see what is in the portfolio?
How do I get the price of my PowerShares™?
What are ETFs?
What is an Index?
When was the first ETF introduced to the market?
How do I invest in an ETF portfolio?
How liquid are ETFs?
How do I sell ETFs?
Can I buy ETFs on margin?
Can I reinvest any distributions?
What is the risk involved?
Can I lose money?
Who is PowerShares Capital Management, LLC?
PowerShares Capital Management, LLC, a portfolio management firm, is the advisor and sponsor of the PowerShares XTF™ family of exchange-traded funds.
What is the relationship between PowerShares Capital Management, LLC and PowerShares XTF™?
PowerShares Capital Management, LLC acts as the advisor for the PowerShares XTF™ funds.
Who are PowerShares XTF™ partners?
PowerShares XTF™ are aligned with some of the leading ETF companies: PowerShares XTF™ are listed on the Amex, and the Amex Intellidex™ is used as the basis for PowerShares XTF™ products; the Bank of New York is the transfer agent; Spear, Leeds & Kellogg is the specialist; A I M Distributors, Inc., a registered broker/dealer, is the distributor of PowerShares XTF™.
What are PowerShares XTF™?
PowerShares XTF™ are exchange-traded funds that seek to replicate the American Stock Exchange's (Amex) Intellidex™ Indexes.
How are PowerShares XTF™ different?
PowerShares XTF™ seek to replicate the intelligent Intellidex™ Index, which use rules-based quantitative analysis to select component securities.
What are the tax benefits of Exchange-Traded Funds?
With Exchange-Traded Funds, as with other stocks, capital losses or gains are determined by the difference of the purchase price and sales price.
In distinction from many investment products, however, Exchange-Traded Funds have an operational structure that allows them to substantially mitigate and or possibly avoid capital gain distributions.
This is made possible because of two core product operational characteristics:
(1) Exchange-Traded Funds use an in-kind redemption process that allows shareholders to defer some, most or possibly all capital gain distributions until they sell their shares
(2) The shares are sold from one investor to another, which reduces the need to liquidate securities in the portfolio.
These benefits result in greater tax-efficiency because the portfolio is not impacted as severely by shareholder activity and portfolio turnover.
What is the minimum purchase for PowerShares XTF™?
While there is no minimum amount determined by the Fund, each individual brokerage account may have a minimum dollar and/or share amount for initial purchases.
Investors should contact their brokerage firm for more information. 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 Units only.
Can I add to my PowerShares XTF™ investment?
Yes; just like with an individual stock, the accumulation of shares is not limited by the security itself. Additional purchases are made in the same manner as initial purchases.
What are the benefits that make PowerShares XTF™ so attractive?
Tax efficiency
Cost efficiency
Liquidity
Diversification
Transparency
Representation
Are there any dividend distributions?
Any dividends available will be paid quarterly.
Check the fund guide for further information.
What is an Intellidex™?
Intellidex™ is the term used to refer to the index of securities that are selected by the Intelligent Index methodology. The Intellidex™ is licensed from and calculated by the American Stock Exchange. The sophisticated Intellidex™ methodology analyzes large groups of stocks seeking to select specific stocks based upon their investment potential. The Amex Intellidex™ portfolios include the broad market Dynamic Market Portfolio (symbol DYI) and the Dynamic OTC Portfolio (symbol DYO). The Amex Intellidex™ portfolios also include style and sector based portfolios.
What is Dynamic Indexing?
Dynamic Indexing is a rules based selection process. A Dynamic Index typically will change on a quarterly basis and will utilize quantitative research for selecting component securities.
How often is the portfolio rebalanced?
The portfolio is rebalanced and reallocated each quarter to match the Intellidex™.
Can I see what is in the portfolio?
The PowerShares XTF™ constituents are available on our web site, and the Intellidex™ portfolio is also available at www.amex.com at all times. Knowing what securities are actually in your portfolio provides additional comfort when investing.
How do I get the price of my PowerShares?
Using the ticker symbols "PWC" or "PWO" with most quote systems will give you the current price.
If you have trouble, use symbol look-up and look up "XTF".
What are ETFs?
ETFs are the fastest growing investment product in the worldwide financial marketplace today.
ETFs are funds that trade like individual stocks on all of the major exchanges, similar to securities of publicly held companies.
ETFs are based on indexes.
What is an Index?
An index is a statistical indicator providing a representation of the value of the securities that constitute it.
Indexes often serve as barometers for a given market or industry and benchmarks against which financial or economic performance is measured. You cannot invest directly in an index.
When was the first ETF introduced to the market?
The American Stock Exchange LLC, through its subsidiary PDR Services LLC and the Standard & Poor’s Depository Receipt (SPDR) Trust, petitioned for and received an SEC Order that in 1992 authorized a stand-alone S&P 500 Index-based ETF as a unit investment trust.
How do I invest in an ETF portfolio?
Investors buy and sell index ETFs like they would an individual stock, typically through a brokerage account.
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 Units only.
Investors can also employ traditional stock trading techniques including stop orders, limit orders, margin purchases and short sales.
As with all stocks, if the equity value, including the amount attributable to your index ETFs shares, declines, you may be required to deposit more money or securities into your account in order to maintain proper margin requirements. Borrowing of assets for margin purchases should be discussed and reviewed with the investor's brokerage firm. This type of account requires greater requirements than a standard account.
How liquid are ETFs?
All ETFs can be purchased or redeemed at any time while the exchange is open for trading.
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 Units only.
There is no limit to the holding period for an ETF.
How do I sell ETFs?
Shares are sold in the same manner as they are bought. As with stock, purchases can be made with market orders, limit orders, stop orders, stop-limit orders, good-to-canceled or day orders.
Can I buy ETFs on margin?
Yes; ETF shares fall under the same margin rules as regular publicly traded stocks. Investors must contact their respective brokerage account and have their account setup for margin purchases. PowerShares XTF™ are subject to risks similar to those of stocks, including those regarding short-selling and margin account maintenance.
Can I reinvest any distributions?
PowerShares XTF™ do not limit the ability to reinvest, but, rather, this is determined by the brokerage account that the shares are held in.
Many brokerage accounts allow for them to be setup in a DRIP (dividend reinvestment program), which automatically reinvests any dividend or distribution into more shares.
What is the risk involved?
PowerShares XTF™ are made up of publicly traded securities that can and will move higher and lower with market movements. Because of the design of the portfolio model, the primary risk involved will be market risk similar to that of a diversified fund. There are risks involved with investing in ETFs including the possible loss of money and trading at a discount to NAV. The investment return and principal value of an investment in PowerShares XTF™ will fluctuate so that shares, when sold, may be worth more or less than their original cost. An investment in PowerShares XTF™ may lose value and is not guaranteed or insured by the FDIC, another government agency or any bank. You may purchase or sell PowerShares XTF™ throughout the day through any brokerage account, which will result in typical brokerage commissions.
Refer to the prospectus for a complete discussion of the risks associated with PowerShares XTF™.
Can I lose money?
As with any equity investment, loss of assets is a possibility. Read the prospectus carefully before investing. The investment is not FDIC insured or guaranteed.
An investment in PowerShares XTF™ may lose value and is not guaranteed or insured by the FDIC, another government agency or any bank. Each fund may engage in active and frequent trading of its portfolio securities, which could result in high brokerage costs and an increase in taxable gains distributions to shareholders. Dividends from net investment income, if any, will be taxable as ordinary income. Ordinary brokerage commissions apply.
Nothing contained on this site constitutes investment, legal, tax or other advice, nor is it to be relied on in making an investment or any other decision. You should consult with your personal tax, legal and investment advisors before making any investment decision.
|
