The Securities Valuation Office of the National Association of Insurance Commissioners (NAIC) assigns credit quality designations to securities held by state-regulated insurance companies. NAIC Designations are opinions of credit quality that range from NAIC 1, being the highest quality, to NAIC 6, being the lowest quality. “P” is a valuation indicator used to classify perpetual preferred stock. NAIC Designations allow fixed-income ETFs to be reported as bonds and are used to set Risk-Based Capital (RBC) requirements. NAIC designations only measure credit risk and do not measure other risks or factors that may affect repayment, such as volatility/interest rate, prepayment, extension or liquidity risk.
1 Shares are not individually redeemable and owners of shares may acquire those from the Funds and tender those shares for redemption to the Funds in creation unit aggregations only, typically consisting of 50,000 shares.
2 PowerShares by Invesco does not offer tax advice. Please consult your tax adviser for information regarding your own tax situation.
This does not constitute a recommendation of the suitability of any investment strategy for a particular investor. Not all strategies are suitable for all investors. Investors should consider their own (or discuss their) situation and risk tolerance (with their financial advisor) before investing.
Securities lending involves a risk of loss because the borrower may fail to return the securities in a timely manner or at all.
Derivatives including Commodities Futures, Forward Contracts and Swaps are generally volatile and may be subject to risk not associated with traditional investments and may not be suitable for all investors.
Tracking error is a divergence between the price behavior of a position or a portfolio and the price behavior of a benchmark.
Beta is a measure of risk of an asset in relation to the general market or the tendency of a security's returns to respond to changes in the market.
Roll Risk risk is the risk of not realizing return generated in a backwardated futures market from rolling a short-term contract into a longer-term contract and profiting from the convergence toward a higher spot price upon contract expiration.A backwardated futures market occurs when demand is greater in the near future making contracts with delivery dates in the near future have higher prices than those with delivery dates that are further out.
Basis Risk is the risk that offsetting investments in a hedging strategy will not experience price changes in entirely opposite directions from each other. This imperfect correlation between the two investments creates the potential for excess gains or losses in a hedging strategy, thus adding risk to the position.
ETFs disclose their full portfolio holdings daily.