1 ETF shares are created and redeemed through an “in-kind” transfer process. Entities called “authorized participants” can trade ETF shares for baskets of individual shares that mimic the ETF’s underlying holdings.
2 Source: Invesco PowerShares as of Oct. 28, 2014
3 Internal Revenue Code “wash-sale” laws disallow capital losses if a security is sold at a loss and the same security is repurchased or a “substantially identical” security is purchased 30 days prior to or 30 days after the sale.
There are risks involved with investing in ETFs, including possible loss of money. Index-based ETFs are not actively managed. Actively managed ETFs do not necessarily seek to replicate the performance of a specified index. Both index-based and actively managed ETFs are subject to risks similar to stocks, including those related to short selling and margin maintenance. Ordinary brokerage commissions apply. The Fund’s return may not match the return of the Index.
While it is not Invesco PowerShares intention, there is no guarantee that the Funds will not distribute capital gains to its shareholders.