PowerShares DWA Momentum ETFs and Dorsey, Wright & Associates

Invesco PowerShares continues to lead the intelligent ETF revolution by providing the only exchange-traded funds that utilize the technical expertise of Dorsey, Wright & Associates (DWA).

Invesco PowerShares is proud to be the only ETF sponsor with the funds that track indexes built around the Dorsey Wright Technical Leaders Methodology1. DWA believes that technical analysis in the form of relative strength may provide investors an intelligent platform for portfolio outperformance.

Of course, there is no assurance an investment strategy will outperform or achieve its investment objectives.

DWA Momentum Portfolio (PDP)

Dorsey Wright Technical Leaders™ Index
Overview Page | Fact Sheet | Prospectus

 The PowerShares DWA Momentum Portfolio (Fund) is based on the Dorsey Wright Technical Leaders Index (Index). The Index includes approximately 100 U.S.-listed companies that is designed to demonstrate powerful relative strength characteristics.

The Index is constructed pursuant to Dorsey Wright proprietary methodology, which takes into account, among other factors, the performance of each of the 1,000 largest U.S.-listed companies as compared to a benchmark index, and the relative performance of industry sectors and sub-sectors.

DWA SmallCap Momentum Portfolio (DWAS)

Dorsey Wright SmallCap Technical Leaders Index
Overview Page | Fact Sheet | Prospectus

 The PowerShares DWA SmallCap Momentum Portfolio (Fund) is based on the Dorsey Wright SmallCap Technical Leaders Index. The Index provider selects approximately 200 U.S.-listed small-cap companies that is designed to demonstrate powerful relative strength characteristics.

The Index is constructed pursuant to a Dorsey Wright proprietary methodology, which takes into account, among other factors, the performance of a small-cap universe of approximately 2,000 of the smallest U.S. companies selected from a broader set of 3,000 companies, and the relative performance of industry sectors and sub-sectors.

DWA Emerging Markets Momentum Portfolio (PIE)

Dorsey Wright Emerging Markets Technical Leaders ND Index
Overview Page | Fact Sheet | Prospectus

The PowerShares DWA Emerging Markets Momentum Portfolio (Fund) is based on the Dorsey Wright Emerging Markets Technical Leaders Index ND (Index).

The Index includes approximately 100 companies that possess powerful relative strength characteristics and are domiciled in emerging market countries including, but not limited to Brazil, Chile, China, India, Indonesia, Philippines, South Africa, Thailand and Turkey. The Index is computed using the net return, which withholds applicable taxes for non-resident investors. The Fund and the Index are rebalanced and reconstituted quarterly.

DWA Developed Markets Momentum Portfolio (PIZ)

Dorsey Wright Developed Markets Technical Leaders ND Index
Overview Page | Fact Sheet | Prospectus

The PowerShares DWA Developed Markets Momentum Portfolio (Fund) is based on the Dorsey Wright Developed Markets Technical Leaders Index ND (Index).

The Index includes approximately 100 companies that possess powerful relative strength characteristics and are domiciled in developed markets including, but not limited to Australia, Canada, Finland, France, Germany, Hong Kong, Italy, Japan, Norway, Portugal, Singapore, Spain and Switzerland. The Fund and the Index are rebalanced and reconstituted quarterly. The Index is computed using the net return, which withholds applicable taxes for non-resident investors.

DWA NASDAQ Momentum Portfolio (DWAQ)

Dorsey Wright NASDAQ Technical Leaders Index
Overview Page | Fact Sheet | Prospectus

The PowerShares DWA NASDAQ Momentum Portfolio (Fund) is based on the Dorsey Wright NASDAQ Technical Leaders Index (Index).

This Index provider selects 100 equity securities from a universe of about 1000 common stocks with the largest market capitalization traded on the NASDAQ Exchange.

1 The relative strength strategy is NOT a guarantee. There may be times where all investments and strategies are unfavorable and depreciate in value. Relative strength is a measure of price momentum based on historical price activity. Relative strength is not predictive and there is no assurance that forecasts based on relative strength can be relied upon.

PowerShares DWA momentum portfolios offer investors a unique suite of relative strength (momentum) driven ETFs across nine major market sectors. A disciplined investment approach and smart beta2 index construction provide investors the opportunity to employ sector rotation strategies or buy the sectors they believe hold the greatest investment opportunity.

Note that the momentum style of investing is subject to the risk that the securities may be more volatile than the market as a whole, or that the returns on securities that have previously exhibited price momentum are less than returns on other styles of investing.

PowerShares DWA Basic Materials Momentum Portfolio (PYZ)

DWA Basic Materials Technical Leaders Index
Overview Page | Fact Sheet | Prospectus

The PowerShares DWA Basic Materials Momentum Portfolio (Fund) is based on the DWA Basic Materials Technical Leaders Index (Index). The Fund will normally invest at least 90% of its total assets in common stocks that comprise the Index. The Index is designed to identify companies that are showing relative strength (momentum), and is composed of at least 30 common stocks from a universe of approximately 3,000 common stocks traded on US exchanges. The Fund and the Index are rebalanced and reconstituted quarterly.

PowerShares DWA Consumer Cyclicals Momentum Portfolio (PEZ)

DWA Consumer Cyclicals Technical Leaders Index
Overview Page | Fact Sheet | Prospectus

The PowerShares DWA Consumer Cyclicals Momentum Portfolio (Fund) is based on the DWA Consumer Cyclicals Technical Leaders Index (Index). The Fund will normally invest at least 90% of its total assets in common stocks that comprise the Index. The Index is designed to identify companies that are showing relative strength (momentum), and is composed of at least 30 common stocks from a universe of approximately 3,000 common stocks traded on US exchanges. The Fund and the Index are rebalanced and reconstituted quarterly.

PowerShares DWA Consumer Staples Momentum Portfolio (PSL)

DWA Consumer Staples Technical Leaders Index
Overview Page | Fact Sheet | Prospectus

The PowerShares DWA Consumer Staples Momentum Portfolio (Fund) is based on the DWA Consumer Staples Technical Leaders Index (Index). The Fund will normally invest at least 90% of its total assets in common stocks that comprise the Index. The Index is designed to identify companies that are showing relative strength (momentum), and is composed of at least 30 common stocks from a universe of approximately 3,000 common stocks traded on US exchanges. The Fund and the Index are rebalanced and reconstituted quarterly.

PowerShares DWA Energy Momentum Portfolio (PXI)

DWA Energy Technical Leaders Index
Overview Page | Fact Sheet | Prospectus

PowerShares DWA Energy Momentum Portfolio (Fund) is based on the DWA Energy Technical Leaders Index (Index). The Fund will normally invest at least 90% of its total assets in common stocks that comprise the Index. The Index is designed to identify companies that are showing relative strength (momentum), and is composed of at least 30 common stocks from a universe of approximately 3,000 common stocks traded on US exchanges. The Fund and the Index are rebalanced and reconstituted quarterly.

PowerShares DWA Financial Momentum Portfolio (PFI)

DWA Financials Technical Leaders Index
Overview Page | Fact Sheet | Prospectus

The PowerShares DWA Financial Momentum Portfolio (Fund) is based on the DWA Financials Technical Leaders Index (Index). The Fund will normally invest at least 90% of its total assets in common stocks that comprise the Index. The Index is designed to identify companies that are showing relative strength (momentum), and is composed of at least 30 common stocks from a universe of approximately 3,000 common stocks traded on US exchanges. The Fund and the Index are rebalanced and reconstituted quarterly.

PowerShares DWA Healthcare Momentum Portfolio (PTH)

DWA Healthcare Technical Leaders Index
Overview Page | Fact Sheet | Prospectus

The PowerShares DWA Healthcare Momentum Portfolio (Fund) is based on the DWA Healthcare Technical Leaders Index (Index). The Fund will normally invest at least 90% of its total assets in common stocks that comprise the Index. The Index is designed to identify companies that are showing relative strength (momentum), and is composed of at least 30 common stocks from a universe of approximately 3,000 common stocks traded on US exchanges. The Fund and the Index are rebalanced and reconstituted quarterly.

PowerShares DWA Industrials Momentum Portfolio (PRN)

DWA Industrials Technical Leaders Index
Overview Page | Fact Sheet | Prospectus

The PowerShares DWA Industrials Momentum Portfolio (Fund) is based on the DWA Industrials Technical Leaders Index (Index). The Fund will normally invest at least 90% of its total assets in common stocks that comprise the Index. The Index is designed to identify companies that are showing relative strength (momentum), and is composed of at least 30 common stocks from a universe of approximately 3,000 common stocks traded on US exchanges. The Fund and the Index are rebalanced and reconstituted quarterly.

PowerShares DWA Technology Momentum Portfolio (PTF)

DWA Technology Technical Leaders Index
Overview Page | Fact Sheet | Prospectus

The PowerShares DWA Technology Momentum Portfolio (Fund) is based on the DWA Technology Technical Leaders Index (Index). The Fund will normally invest at least 90% of its total assets in common stocks that comprise the Index. The Index is designed to identify companies that are showing relative strength (momentum), and is composed of at least 30 common stocks from a universe of approximately 3,000 common stocks traded on US exchanges. The Fund and the Index are rebalanced and reconstituted quarterly.

PowerShares DWA Utilities Momentum Portfolio (PUI)

DWA Utilities Technical Leaders Index
Overview Page | Fact Sheet | Prospectus

The PowerShares DWA Utilities Momentum Portfolio (Fund) is based on the DWA Utilities Technical Leaders Index (Index). The Fund will normally invest at least 90% of its total assets in common stocks that comprise the Index. The Index is designed to identify companies that are showing relative strength (momentum), and is composed of at least 30 common stocks from a universe of approximately 3,000 common stocks traded on US exchanges. The Fund and the Index are rebalanced and reconstituted quarterly.

1 The relative strength strategy is NOT a guarantee. There may be times where all investments and strategies are unfavorable and depreciate in value. Relative strength is a measure of price momentum based on historical price activity. Relative strength is not predictive and there is no assurance that forecasts based on relative strength can be relied upon.
2 Smart Beta represents an alternative and selection index based methodology that seeks to outperform a benchmark or reduce portfolio risk, or both. Smart beta funds may underperform cap-weighted benchmarks and increase portfolio risk. Beta is a measure of risk representing how a security is expected to respond to general market movements.

Dorsey, Wright & Associates & the Importance of Relative Strength1

What is Relative Strength?

Relative Strength, as the name implies measures how one security is doing compared to another. For example, how Microsoft is performing versus the S&P 500 Index or how Ford is acting compared to General Motors. In essence, such a comparison allows you to determine which security is outperforming the other. The implication is that you invest in the vehicle that is outperforming the other, be it the market, or another stock. At Dorsey, Wright the Relative Strength reading is found by dividing the price of a security by the price of another security, and multiplying that number by 100. This daily value is then plotted on a point and figure chart and evaluated to determine near term and longer term outperformance trends. Relative strength improves upon the technical foundation of basic trend following because it relies on unbiased, unemotional and objective data, rather than biased forecasting or subjective research.

The Point and Figure Relative Strength Process

  1. Define Inventory
  2. Create Relative Strength Ranking
  3. Select Top Ranked Stocks for inclusion in the index
  4. Weight by relative strength rank
  5. Repeat Process (typically quarterly)

Why Relative Strength?

We believe that technical analysis, and specifically relative strength, may provide investors an intelligent platform for portfolio outperformance. While fundamental answer the question of what to buy and sell, technical answer the question of when to buy and sell. These may be two of the most important decisions in regards to portfolio performance.

Of course, there is no assurance an investment strategy will outperform or achieve its investment objectives.

Dorsey, Wright & Associates, LLC

Dorsey, Wright & Associates (DWA) is an independent and privately owned registered investment advisory firm based in Richmond, Virginia. Since 1987, Dorsey Wright has been a leading advisor to financial professionals on Wall Street and investment managers around the world. DWA provides three essential services for clients: comprehensive investment research and analysis, professional money management for financial advisors and individuals, and sub-advisory and licensing services to mutual funds, UITS, structured products, and ETF providers.

In addition, DWA has published numerous books on the Point & Figure methodology, trading strategies, and navigating financial markets. DWA research is conducted along technical lines, adhering to the steadfast relationship between supply and demand.

DWA believes this simple but accurate economic theory is manifested as a constant battle between the two forces for control of an equity vehicle. It is this objective, logical approach which helps reduce uncertainty in the market.

1 The relative strength strategy is NOT a guarantee. There may be times where all investments and strategies are unfavorable and depreciate in value. Relative strength is a measure of price momentum based on historical price activity. Relative strength is not predictive and there is no assurance that forecasts based on relative strength can be relied upon.

Opinions expressed by DWA, are not necessarily that of Invesco PowerShares, Invesco Distributors, Inc. or Invesco Ltd. Invesco Ltd. and its subsidiaries offer no guarantees or warranties as to the accuracy and reliability of opinions expressed, and cannot guarantee similar experiences.

Important Information
This is provided for informational purposes only and is not to be construed as investment advice or a recommendation of a particular strategy or product. The strategies discussed here must be implemented by a financial advisor.

General Risks
There are risks involved with investing in ETFs, including possible loss of money. Shares are not actively managed and are subject to risks including those regarding short selling and margin maintenance requirements. Ordinary brokerage commissions apply.

Equity risk is the risk that the value of equity securities, including common stocks, may fall due to both changes in general economic and political conditions that impact the market as a whole, as well as factors that directly relate to a specific company or its industry.

Investing in securities of small and medium capitalization companies may involve greater risk than is customarily associated with investing in large companies.

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

The Funds are considered non-diversified and may be subject to greater risks than a diversified fund.

Foreign securities have additional risks, including exchange-rate changes, decreased market liquidity, political instability and taxation by foreign governments.

Investment in securities in emerging market countries involves risks not associated with investments in securities in developed countries.

Underlying investments may appreciate or decrease significantly in value over short periods of time and cause share values to experience significant volatility over short periods of time.

The Funds contain securities in the basic materials, biotechnology, consumer discretionary, energy, financial services, healthcare, industrials, technology, utilities, genome, food and beverage, building and construction, pharmaceuticals services, energy exploration and production, leisure and entertainment, media, networking, oil and gas services, retail, semiconductors, software and the pharmaceuticals industries. Companies engaged in these sectors are subject to greater risks, and are more greatly impacted by market volatility, than more diversified investments.

Please be aware that the funds mentioned here are subject to additional specific risks. There is no assurance that the funds mentioned here will achieve their investment objectives. Please see each fund's prospectus for additional information regarding the risks associated with an investment.

The S&P 500 Index is an unmanaged index considered representative of the US stock market. S&P® is a registered trademark of Standard & Poor's Financial Services LLC (S&P) and Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (Dow Jones). These trademarks have been licensed for use by S&P Dow Jones Indices LLC. S&P® and Standard & Poor's® are trademarks of S&P and Dow Jones® is a trademark of Dow Jones. These trademarks have been sublicensed for certain purposes by Invesco PowerShares Capital Management LLC (Invesco PowerShares). The Index is a product of S&P Dow Jones Indices LLC and/or its affiliates and has been licensed for use by Invesco PowerShares. The Fund is not sponsored, endorsed, sold or promoted by S&P Dow Jones Indices LLC, Dow Jones, S&P or their respective affiliates and neither S&P Dow Jones Indices LLC, Dow Jones, S&P or their respective affiliates make any representation regarding the advisability of investing in such product(s).

The Dorsey Wright SmallCap Technical Leaders Index is calculated by Dow Jones, the marketing name and a licensed trademark of CME Group Index Services LLC ("CME Indexes"). "Dow Jones Indexes" is a service mark of Dow Jones Trademark Holdings LLC ("Dow Jones"). Products based on the Dorsey Wright SmallCap Technical Leaders IndexSM, are not sponsored, endorsed, sold or promoted by CME Indexes, Dow Jones and their respective affiliates make no representation regarding the advisability of investing in such product(s).

The Technical Leaders Ranking System is a trademark of DWA that is licensed to Invesco PowerShares Capital Management LLC. This product is not sponsored, recommended, sold or promoted by DWA or any of its affiliates. Invesco PowerShares Capital Management LLC is not affiliated with any Dorsey Wright company.

The PowerShares DWA Sector Portfolios are calculated by NYSE Euronext or its affiliates (NYSE Euronext). The PowerShares DWA Sector Momentum ETFs, which are based on Dorsey Wright indexes, are not issued, endorsed, sold, or promoted by NYSE Euronext, and NYSE Euronext makes no representation regarding the advisability of investing in such product.  

NYSE EURONEXT MAKES NO EXPRESS OR IMPLIED WARRANTIES, AND HEREBY EXPRESSLY DISCLAIMS ALL WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE WITH RESPECT TO THE DORSEY WRIGHT INDEXES OR ANY DATA INCLUDED THEREIN. IN NO EVENT SHALL NYSE EURONEXT HAVE ANY LIABILITY FOR ANY SPECIAL, PUNITIVE, INDIRECT, OR CONSEQUENTIAL DAMAGES (INCLUDING LOST PROFITS), EVEN IF NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES. 

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