Learn more about PowerShares S&P 500 BuyWrite Portfolio.

1 Source: Bloomberg LP, August 20, 2015

Important information

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. The fund is subject to certain other risks. Please see the current prospectus for more information regarding the risk associated with an investment in the fund.

There are additional risks involved in writing (selling) covered call options. The fund, by writing covered call options on the index, will give up the opportunity to benefit from potential increases in value of the index stocks above the exercise prices of the options, but will continue to bear the risk of declines in the value of the Index. The fund will be subject to capital gain taxes, ordinary income tax and other special tax considerations due to its writing covered call options strategy.

Investments focused in a particular industry or sector are subject to greater risk, and are more greatly impacted by market volatility, than more diversified investments.

A basis point is one hundredth of a percentage point.

Long positions make money when an investment rises in price.

A call option is an option to buy assets at an agreed-upon price on or before a particular date.

An option premium is the income received by an investor who sells an option contract to another parts.

Volatility measures the amount of fluctuation in the price of a security or portfolio over time.

Standard deviation is a measure of the dispersion of a set of data from its mean.

A risk premium is the amount of return an asset generates above cash.

The CBOE S&P 500 BuyWrite IndexTM is a total return benchmark index that is designed to track the performance of a hypothetical “buy-write” strategy on the S&P 500® Index. The CBOE S&P 500 BuyWrite Index measures the total rate of return of an S&P 500 covered call strategy. This strategy consists of holding a long position indexed to the S&P 500 Index and selling a succession of covered call options, each with an exercise price at or above the prevailing price level of the S&P 500 Index. Dividends paid on the component stocks underlying the S&P 500 and the dollar value of option premiums received from written options are reinvested.

The S&P 500® Index is an unmanaged index considered representative of the US stock market.

This article was written by Jason Bloom, Director Commodities & Alternatives Product Strategy for PowerShares.