Invesco PowerShares Leading the Intelligent ETF Revolution(r)
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The PowerShares S&P SmallCap Sector Portfolios are the first suite of exchange-traded funds (ETFs) offering sector-specific beta1 exposure within the small-cap space.
The PowerShares S&P SmallCap Sector Portfolios seek to offer a low-cost,2 transparent3 and tax-efficient4 way to gain sector-specific small-cap exposure.
These ETFs offer a new means of implementing sector-based strategies.
Each of the nine portfolios listed below seeks investment results that correspond (before fees and expenses) generally to the price and yield performance of their respective underlying index.
Ticker Portfolio
XLYSPowerShares S&P SmallCap Consumer Discretionary Portfolio
XLPSPowerShares S&P SmallCap Consumer Staples Portfolio
XLESPowerShares S&P SmallCap Energy Portfolio
XLFSPowerShares S&P SmallCap Financials Portfolio
XLVSPowerShares S&P SmallCap Health Care Portfolio
XLISPowerShares S&P SmallCap Industrials Portfolio
XLKSPowerShares S&P SmallCap Information Technology Portfolio
XLBSPowerShares S&P SmallCap Materials Portfolio
XLUSPowerShares S&P SmallCap Utilities Portfolio
Over the last 10 years, small-cap stocks have outperformed large-cap stocks on both an absolute and risk-adjusted basis. This outperformance was not the result of any single sector achieving disproportionate outperformance. Rather, all nine small-cap indexes outperformed their large-cap counterparts.
Over the long term, from 1926 through 2009, small caps outperformed large caps by an average of two percentage points per year. Much of this outperformance occurred during postrecessionary periods, during which small caps outperformed large caps by an average of 5.6%.
Source: Morningstar/Ibbotson, as of March 2010. Past performance is no guarantee of future results.
Fund Details
Inception DateApril 7, 2010
Listing ExchangeNASDAQ
Expense Ratio0.29%
Creation Unit Size50,000 shares
Index ProviderStandard & Poor's
Bloomberg Index Tickers
Consumer Disc.SPSU6CDT
Consumer StaplesSPSU6CST
EnergySPSU6ET
FinancialsSPSU6FT
Health CareSPSU6HCT
IndustrialsSPSU6IT
Information TechSPSU6TT
MaterialsSPSU6MT
Utilities & Telecom SvcsSPSU6UT
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The S&P SmallCap 600
The S&P SmallCap 600 Index is intended to represent the U.S. small-cap equity universe of investable and financially viable companies. In order to qualify for inclusion, a stock must meet the following criteria at the time it is added:
  • Size: Must have a market capitalization between $250 million and $1.2 billion
  • Earnings: Must have four consecutive quarters of positive earnings
  • Liquidity: Must have annual trading volume of at least 100% of its market cap
  • Public Float: At least 50% of shares must be publicly available
Constituents are monitored year round and replaced as needed. Each constituent is given a sector assignment based on the widely recognized Global Industry Classification Standard (GICS).
Small Cap isn't Small
Over the last 12 months, the companies in the S&P SmallCap 600 Index:
  • Employed an average of 4,247 people
  • Generated an average of $853 million in sales
Source: S&P, as of March 2010
(X) Close Window
Broad IndexReturnStandard DeviationSharpe Ratio
S&P SmallCap 6006.35%20.3%0.173
S&P 500-0.95%16.1%-0.255
Consumer DiscretionaryConsumer StaplesEnergyFinancialsHealth CareIndustrialsInformation TechnologyMaterialsUtilities
S&P SmallCap 600 4.00%11.90%18.40%6.50%11.50%7.20%-2.80%7.10%11.20%
S&P 500 -1.20%5.20%9.50%-2.60%2.60%0.80%-7.00%4.70%4.90%
Difference 5.30%6.70%8.90%9.10%8.80%6.40%4.20%2.40%6.30%
Source: Bloomberg, as of March 2010. Past performance is no guarantee of future results. An investor cannot invest directly in an index.
1 Beta is a measure of relative risk and the slope of regression.
2 Since ordinary brokerage commissions apply for each buy and sell transaction, frequent trading activity may increase the cost of ETFs.
3 ETFs disclose their full portfolio holdings daily.
4 Invesco PowerShares does not offer tax advice. Please consult your tax advisor regarding your own personal tax situation.
There are risks involved with investing in ETFs including possible loss of money. The Fund is not actively managed. Ordinary brokerage commissions apply.
Each Fund contains securities from its underlying sector-specific index. Companies engaged in the consumer discretionary, consumer staples, energy, financial services, healthcare, industrials, information technology, basic materials, utilities and telecommunication services sectors are subject to greater risks, and are more greatly impacted by market volatility, than more diversified investments.
The Funds are non-diversified and can invest a greater portion of assets in securities of individual issuers than a diversified fund. As a result, changes in the market value of a single investment could cause greater fluctuations in share price than would occur in a diversified fund.
Investing in securities of small capitalization companies may involve greater risk than is customarily associated with investing in large companies.
Standard & Poor's® and S&P® are registered trademarks of Standard & Poor's Financial Services LLC (S&P) and have been licensed for use by Invesco PowerShares Capital Management LLC. The Fund is not sponsored, endorsed, sold or promoted by S&P or its affiliates, and S&P and its affiliates make no representation, warranty or condition regarding the advisability of buying, selling or holding units/shares in the Fund.
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.
©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 Distributors, Inc. are indirect, wholly owned subsidiaries of Invesco Ltd.
Invesco 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
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