Innovative income solutions

Many ETFs track indexes that weight holdings according to market capitalization or the amount of debt outstanding. The result of this approach can be exposure to the most indebted issuers. While these traditional indexes are useful benchmarks, they were never intended as investment strategies. PowerShares income solutions offer a different way to think about fixed income allocation by going beyond the benchmark.

A diversified line-up offering income exposure across asset classes

PowerShares income solutions offer access to a full spectrum of asset classes with varying current income potential. Our smart beta ETFs include dividend securities, as well as investment-grade and high yield credits with a wide range of maturities. Certain products are also positioned to potentially benefit from rising interest rates and offer low correlation to traditional bond portfolios.

As of 03/28/2017 unless otherwise stated. Modified duration as of 03/24/2017

Performance quoted is past performance and cannot guarantee comparable future results; current performance may be lower or higher. Investment return and principal value will vary so that you may have a gain or a loss when you sell shares. If applicable the shares performance reflects fee waivers, absent which, performance would have been lower. To view standardized performance including most recent month end click on the explore more button.

Income Insights

Emerging market bonds: Are you being compensated for currency risk?

06/03/2016 | Thomas Boccellari

Fixed income investors may experience less risk by investing in US dollar-denominated emerging market bonds.
Read more

In search of yield: The case for senior bank loans

05/16/2016 | Thomas Boccellari

Senior bank loans may offer high yield potential with limited exposure to risky energy credits
Read more

PowerShares by Invesco income allocations

As financial advisors increasingly seek ideas for building portfolios, the PowerShares Portfolio Strategy Team developed four hypothetical allocations as a guide to help create income allocations for clients. Utilizing PowerShares income ETFs, the globally diversified income allocations offer different maturities, distributions and a wide range of risk/reward profiles. Each allocation provides access to developed and emerging markets, and includes both fixed income and dividend securities. As is true with any portfolio, it's important to note that asset allocation or diversification does not guarantee a profit or eliminate the risk of loss.

Low Duration, High Income

Structured to offer the potential for high current income and low interest rate risk. Learn more about this allocation's methodology.

Allocation description

Investment-grade credits with ancillary high yield exposure.

  • Potential to benefit from rising interest rates, with roughly half of portfolio comprising floating rate instruments and senior bank loans
  • Low weighted average duration

Allocation risk profile

For illustrative purposes only

Portfolio Asset Type Allocation

Allocation details

Allocation details

Weighted SEC 30-day yield 3.66%
Weighted SEC 30-day unsubsidized yield 3.66%
Weighted distribution yield 4.03%
Weighted modified duration 1.73 years

as of 02/28/2017

Allocation holdings' details

Ticker Name SEC 30 Day Yield1 Unsubsidized 30 Day Yield2 Distribution Rate3 Effective Duration4 (Yrs)
PGHY PowerShares Global Short Term High Yield Bond Portfolio 5.70% 5.70% 5.80% 1.20
BKLN PowerShares Senior Loan Portfolio 2.73% 2.73% 3.37% 0.00
VRP PowerShares Variable Rate Preferred Portfolio 4.86% 4.86% 4.99% 3.96
LDRI PowerShares LadderRite 0-5 Year Corporate Bond Portfolio 1.88% 1.88% 1.79% 2.21

Intermediate Duration, High Income

Structured to offer high current income potential, with interest rate risk consistent with the Barclays Intermediate Bond Index. Learn more about this allocation's methodology.

Allocation description

Investment-grade credits with ancillary high yield exposure.

  • Potential to benefit from rising interest rates, with nearly half of portfolio comprising floating rate instruments and senior bank loans
  • Intermediate-level weighted average duration

Allocation risk profile

For illustrative purposes only

Portfolio Asset Type Allocation

Allocation details

Allocation details

Weighted SEC 30-day yield 3.76%
Weighted SEC 30-day unsubsidized yield 3.76%
Weighted distribution yield 4.13%
Weighted modified duration 3.73 years

as of 02/28/2017

Allocation holdings' details

Ticker Name SEC 30 Day Yield1 Unsubsidized 30 Day Yield2 Distribution Rate3 Effective Duration4 (Yrs)
PGHY PowerShares Global Short Term High Yield Bond Portfolio 5.70% 5.70% 5.80% 1.20
BKLN PowerShares Senior Loan Portfolio 2.73% 2.73% 3.37% 0.00
VRP PowerShares Variable Rate Preferred Portfolio 4.86% 4.86% 4.99% 3.96
LDRI PowerShares LadderRite 0-5 Year Corporate Bond Portfolio 1.88% 1.88% 1.79% 2.21
BAB PowerShares Build America Bond Portfolio 3.80% 3.80% 4.25% 8.95

Aggregate Duration, High Income

Structured to offer high current income potential, with interest rate risk consistent with the Barclays Aggregate Bond Index. Learn more about this allocation's methodology.

Allocation description

Investment-grade credits with limited high yield exposure.

  • Potential to benefit from rising interest rates through floating rate instruments
  • Higher weighted average duration

Allocation risk profile

For illustrative purposes only

Portfolio Asset Type Allocation

Allocation details

Allocation details

Weighted SEC 30-day yield 3.79%
Weighted SEC 30-day unsubsidized yield 3.79%
Weighted distribution yield 3.99%
Weighted modified duration 5.43 years

as of 02/28/2017

Allocation holdings' details

Ticker Name SEC 30 Day Yield1 Unsubsidized 30 Day Yield2 Distribution Rate3 Effective Duration4 (Yrs)
PGHY PowerShares Global Short Term High Yield Bond Portfolio 5.70% 5.70% 5.80% 1.20
BKLN PowerShares Senior Loan Portfolio 2.73% 2.73% 3.37% 0.00
VRP PowerShares Variable Rate Preferred Portfolio 4.86% 4.86% 4.99% 3.96
LDRI PowerShares LadderRite 0-5 Year Corporate Bond Portfolio 1.88% 1.88% 1.79% 2.21
BAB PowerShares Build America Bond Portfolio 3.80% 3.80% 4.25% 8.95
PLW PowerShares 1-30 Laddered Treasury Portfolio 2.28% 2.28% 2.11% 11.12
PCY PowerShares Emerging Markets Sovereign Debt Portfolio 5.18% 5.18% 5.24% 8.88

Diversified High Income

Structured to offer high current income potential and credit diversification across asset classes. Learn more about this allocation's methodology.

Allocation description

Investment-grade credits and ancillary high yield exposure.

  • Potential to benefit from rising interest rates through floating rate instruments
  • Broad credit diversification
  • Lower weighted average duration

Allocation risk profile

For illustrative purposes only

Portfolio Asset Type Allocation

Allocation details

Allocation details

Weighted SEC 30-day yield 4.78%
Weighted SEC 30-day unsubsidized yield 4.78%
Weighted distribution yield 5.01%
Weighted modified duration N/A

as of 02/28/2017

Allocation holdings' details

Ticker Name SEC 30 Day Yield1 Unsubsidized 30 Day Yield2 Distribution Rate3 Effective Duration4 (Yrs)
SPHD PowerShares S&P 500 High Dividend Low Volatility Portfolio 3.72% 3.72% 3.58% N/A
KBWD PowerShares KBW High Dividend Yield Financial Portfolio 8.99% 8.99% 8.58% N/A
PGHY PowerShares Global Short Term High Yield Bond Portfolio 5.70% 5.70% 5.80% 1.20
LDRI PowerShares LadderRite 0-5 Year Corporate Bond Portfolio 1.88% 1.88% 1.79% 2.21
BKLN PowerShares Senior Loan Portfolio 2.73% 2.73% 3.37% 0.00
PCY PowerShares Emerging Markets Sovereign Debt Portfolio 5.18% 5.18% 5.24% 8.88
BAB PowerShares Build America Bond Portfolio 3.80% 3.80% 4.25% 8.95
PCEF PowerShares CEF Income Composite Portfolio 7.35% 7.35% 8.00% N/A
VRP PowerShares Variable Rate Preferred Portfolio 4.86% 4.86% 4.99% 3.96

As of 03/28/2017 unless otherwise stated. Effective duration as of 03/24/2017

Performance quoted is past performance and cannot guarantee comparable future results; current performance may be lower or higher. Investment return and principal value will vary so that you may have a gain or a loss when you sell shares. If applicable the shares performance reflects fee waivers, absent which, performance would have been lower. To view standardized performance including most recent month end click on the fund name.

PowerShares income ETFs

Alternative

Click a product name for current quarterly performance
Ticker PowerShares Portfolio Distribution Rate5 SEC 30 Day1 Distribution Frequency
PCEF PowerShares CEF Income Composite Portfolio 8.00% 7.35% Monthly

Equity Income

Click a product name for current quarterly performance
Ticker PowerShares Portfolio Distribution Rate5 SEC 30 Day1 Distribution Frequency
KBWD PowerShares KBW High Dividend Yield Financial Portfolio 8.58% 8.99% Monthly
KBWY PowerShares KBW Premium Yield Equity REIT Portfolio 6.28% 7.37% Monthly
IDHD PowerShares S&P International Developed High Dividend Low Volatility Portfolio 5.58% 3.59%
XSHD PowerShares S&P SmallCap High Dividend Low Volatility Portfolio 3.90% 3.90%
SPHD PowerShares S&P 500 High Dividend Low Volatility Portfolio 3.58% 3.72% Monthly
PEY PowerShares High Yield Equity Dividend Achievers Portfolio 2.80% 3.17% Monthly
PKW PowerShares BuyBack Achievers Portfolio 2.44% 1.14% Monthly
PID PowerShares International Dividend Achievers Portfolio 0.45% 3.48% Quarterly
PFM PowerShares Dividend Achievers Portfolio 0.39% 2.28% Quarterly

High Yield Corporate - Bank Loans

Click a product name for current quarterly performance
Ticker PowerShares Portfolio Distribution Rate5 SEC 30 Day1 Distribution Frequency
PGHY PowerShares Global Short Term High Yield Bond Portfolio 5.80% 5.70% Monthly
PHB PowerShares Fundamental High Yield Corporate Bond Portfolio 4.43% 4.26% Monthly
BKLN PowerShares Senior Loan Portfolio 3.37% 2.73% Monthly

International

Click a product name for current quarterly performance
Ticker PowerShares Portfolio Distribution Rate5 SEC 30 Day1 Distribution Frequency
PCY PowerShares Emerging Markets Sovereign Debt Portfolio 5.24% 5.18% Monthly
DSUM PowerShares Chinese Yuan Dim Sum Bond Portfolio 3.56% 4.52% Monthly
PICB PowerShares International Corporate Bond Portfolio 1.58% 1.17% Monthly

Investment Grade Corporate

Click a product name for current quarterly performance
Ticker PowerShares Portfolio Distribution Rate5 SEC 30 Day1 Distribution Frequency
PFIG PowerShares Fundamental Investment Grade Corporate Bond Portfolio 2.59% 2.59% Monthly
VRIG PowerShares Variable Rate Investment Grade Portfolio 2.33% 2.19%
LDRI PowerShares LadderRite 0-5 Year Corporate Bond Portfolio 1.79% 1.88% Monthly

Multi-Asset

Click a product name for current quarterly performance
Ticker PowerShares Portfolio Distribution Rate5 SEC 30 Day1 Distribution Frequency
DWIN PowerShares DWA Tactical Multi-Asset Income Portfolio 5.52% 6.28% Monthly

Municipals - Government

Click a product name for current quarterly performance
Ticker PowerShares Portfolio Distribution Rate5 SEC 30 Day1 Distribution Frequency
CLTL PowerShares Treasury Collateral Portfolio 0.69%
BAB PowerShares Build America Bond Portfolio 4.25% 3.80% Monthly
PZT PowerShares New York AMT-Free Municipal Bond Portfolio 3.08% 2.54% Monthly
PZA PowerShares National AMT-Free Municipal Bond Portfolio 3.06% 2.67% Monthly
PWZ PowerShares California AMT-Free Municipal Bond Portfolio 2.59% 2.56% Monthly
PLW PowerShares 1-30 Laddered Treasury Portfolio 2.11% 2.28% Monthly
PVI PowerShares VRDO Tax-Free Weekly Portfolio 0.38% 0.44% Monthly

Preferreds

Click a product name for current quarterly performance
Ticker PowerShares Portfolio Distribution Rate5 SEC 30 Day1 Distribution Frequency
PGX PowerShares Preferred Portfolio 5.62% 5.70% Monthly
PGF PowerShares Financial Preferred Portfolio 5.16% 5.45% Monthly
VRP PowerShares Variable Rate Preferred Portfolio 4.99% 4.86% Monthly

Performance quoted is past performance and cannot guarantee comparable future results; current performance may be lower or higher. Investment return and principal value will vary so that you may have a gain or a loss when you sell shares. If applicable the shares performance reflects fee waivers, absent which, performance would have been lower. To view standardized performance including most recent month end click on the fund name.

1 A standard yield calculation developed by the Securities and Exchange Commission that allows for a common ground comparison of yield performance. It is based on the most recent 30-day period. It is calculated by dividing the net investment income (less expenses) per share over a 30-day period by the current maximum offering price.

2 N/A indicates that during the 30-day period shown, Fund costs did not exceed the expense cap as outlined in the prospectus and the Adviser did not waive any fees in accordance with the Fee Waiver and Expense Assumption Agreement. Please see current prospectus for more information. Reflects the 30-day yield if the investment adviser were not waiving all or part of its fee or reimbursing the fund for part of its expenses. Total return would have also been lower in the absence of these temporary reimbursements or waivers.

3 The sum of a fund's total trailing 12-month interest and dividend payments divided by the last month's ending share price (NAV) plus any capital gains distributed over the same period.

4 A measure of the price sensitivity of a financial instrument to changes in interest rates, expressed in years and calculated as the time-weighted present value of cash flows.

5 Distribution rate: The rate represents a single distribution from the fund and does not represent the total return of the fund. The rate is calculated by annualizing the most recent distribution and dividing by the fund NAV from the as of date. N/A will be displayed if the fund did not make a distribution in the most recent quarter.

The information provided here is for informational purposes only and is not to be construed as investment advice or a recommendation of a particular strategy or product. This is not to be construed as an offer to buy or sell any financial instruments. The PowerShares Income Allocations are not managed or distributed by Powershares nor do they represent any actual account, or the results of any actual trading. Only a financial advisor knows enough about their clients’ circumstances to make an investment decision. These allocations must be implemented by a financial advisor.

General ETF Risk Information
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 Underlying Index.

Different types of investments involve varying degrees of risk and there can be no assurance that any specific investment will either be suitable or profitable for an investor's investment portfolio. The investment strategy of the funds referenced may include investments in equity securities, foreign securities, small and medium sized companies, as well as funds that concentrate in one specific industry or sector, all of which may increase the risk and volatility of the funds. Fixed income investments are subject to credit risk of the issuer and the effects of changing interest rates. The ETFs listed are subject to certain other risks. Please see the current prospectus for more information regarding the risks associated with an investment in the Funds.

The Barclays U.S. Aggregate Index is an unmanaged index considered representative of the U.S. investment-grade, fixed-rate bond market.