Exchange-Traded Funds (ETFs)

VRP - PowerShares Variable Rate Preferred Portfolio

Income - Hybrid Income

Product Details

The PowerShares Variable Rate Preferred Portfolio (Fund) is based on the Wells Fargo® Hybrid and Preferred Securities Floating and Variable Rate Index (Index). The Fund will generally invest at least 90% of its total assets in preferred securities that comprise the Index. The Index is a market capitalization-weighted index designed to track the performance of preferred stock, as well as certain types of “hybrid securities” that are functionally equivalent to preferred stock, that are issued by US-based or foreign issuers and that pay a floating or variable rate dividend or coupon. The Fund and the Index are rebalanced monthly.

as of 12/31/2014 12/31/2014

Performance


   
as of 12/31/2014 12/31/2014
  YTD 1 Year 3 Year 5 Year 10 Year Fund Inception
Index History (%)
Wells Fargo Hybrid and Preferred Securities Floating and Variable Rate Index 9.44 N/A N/A N/A N/A 2.30
S&P U.S. Preferred Stock Index 14.07 14.07 10.55 8.96 N/A 4.54
Fund History (%)
Fund NAV N/A N/A N/A N/A N/A 1.98
After Tax Held N/A N/A N/A N/A N/A 0.66
After Tax Sold N/A N/A N/A N/A N/A 1.12
Fund Market Price N/A N/A N/A N/A N/A 2.21

Monthly Performance

This is a new Fund and has no full-year Fund performance to report as of most recent quarter end.

Market returns are based on the midpoint of the bid/ask spread at 4 p.m. ET and do not represent the returns an investor would receive if shares were traded at other times. Performance data quoted represents past performance, which is not a guarantee of future results. Investment returns and principal value will fluctuate, and shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than performance data quoted. After-tax returns reflect the highest federal income tax rate but exclude state and local taxes. Fund performance reflects fee waivers, absent which, performance data quoted would have been lower. After Tax Held and After Tax Sold are based on NAV. Returns less than one year are cumulative.


as of 03/02/2015

Sector Allocation

Quality Allocations as of 03/02/2015

S&P Moody's
A : 6% A : 8%
BBB : 47% Baa : 46%
BB : 38% Ba : 37%
B : 6% B : 5%
CCC : 0% Caa : 1%
Not Rated : 2% Not Rated : 2%

as of 03/02/2015Top Fixed-Income Holdings | View All

Holding Name Coupon Rate Maturity Date S&P / Moody's Rating† Weight
Wachovia Capital Trust III 5.57% 08/29/2049 BBB/Baa3 3.94%
Citigroup Capital XIII 7.88% 10/30/2040 BB/Ba1 3.66%
GMAC Capital Trust I 8.12% 02/15/2040 B/B3 3.24%
General Electric Capital Corp 6.38% 11/15/2067 A+/A2 3.05%
PNC Financial Services Group Inc/The 6.12% 12/31/2049 BBB-/Baa3 2.84%
Wells Fargo & Co 5.85% 12/31/2049 BBB/Baa3 2.72%
Prudential Financial Inc 5.62% 06/15/2043 BBB+/Baa2 2.51%
Citigroup Inc 6.88% 12/31/2049 BB/Ba3 2.46%
Goldman Sachs Capital II 4.00% 12/31/2049 BB/Ba2 2.23%
US Bancorp/MN 6.50% 12/31/2049 BBB/Baa1 2.08%

Holdings are subject to change and are not buy/sell recommendations.

Distributions | View All | Distribution Information

Ex-Date Record Date Pay Date $/
Share
Ordinary Income Short Term Gains Long Term Gains Return of Capital
02/13/2015 02/18/2015 02/27/2015 0.10288 0.10288 - - -
01/15/2015 01/20/2015 01/30/2015 0.10000 0.10000 - - -
12/15/2014 12/17/2014 12/31/2014 0.10139 0.10139 - - -
11/14/2014 11/18/2014 11/28/2014 0.10896 0.10896 - - -
10/15/2014 10/17/2014 10/31/2014 0.10000 0.10000 - - -
09/15/2014 09/17/2014 09/30/2014 0.11000 0.11000 - - -
08/15/2014 08/19/2014 08/29/2014 0.11000 0.11000 - - -
07/15/2014 07/17/2014 07/31/2014 0.11000 0.11000 - - -
06/13/2014 06/17/2014 06/30/2014 0.11000 0.11000 - - -

Frequency Distribution of Discounts & Premiums

    Bid/Ask MidPoint Above NAV Bid/Ask Midpoint Below NAV
Quarter
Ending
Days 0.50-
0.99%
1.00-
1.99%
>2.00% 0.50-
0.99%
1.00-
1.99%
>2.00%
12/31/2014 64 1 0 0 0 0 0
09/30/2014 64 0 0 0 0 0 0
06/30/2014 42 0 0 0 0 0 0
Year Ended 2014 170 1 0 0 0 0 0

Fund Inception: 05/01/2014

Shareholders may pay more than net asset value when they buy Fund shares and receive less than net asset value when they sell those shares, because shares are bought and sold at current market prices. Performance data quoted represents past performance, which is not a guarantee of future results.


 Risk & Other Information

Typically, security classifications used in calculating allocation tables are as of the last trading day of the previous month

† Credit ratings are assigned by Nationally Recognized Statistical Rating Organizations based on assessment of the credit worthiness of the underlying bond issuers. The ratings range from AAA (highest) to D (lowest) and are subject to change. Not rated indicates the debtor was not rated, and should not be interpreted as indicating low quality. Futures and other derivatives are not eligible for assigned credit ratings by any NRSRO and are excluded from quality allocations. For more information on rating methodologies, please visit the following NRSRO websites: standardandpoors.com and select "Understanding Ratings" under Rating Resources and moodys.com and select "Rating Methodologies" under Research and Ratings.

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.

Preferred securities may be less liquid than many other securities, and in certain circumstances, an issuer of preferred securities may redeem the securities prior to a specified date.

Investments in preferred securities carry interest rate risk. Interest rate risk refers to the risk that bond prices generally fall as interest rates rise and vice versa.

The Fund's underlying securities may be subject to call risk, which may result in the Fund having to reinvest the proceeds at lower interest rates, resulting in a decline in the Fund's income.

Variable and floating-rate securities may be subject to liquidity risk, meaning that there may be limitations on the Fund's ability to sell the securities at any given time. Due to their variable or floating-rate features, these securities generally will pay higher levels of income in a rising interest rate environment; however, there can be no guarantee that a dividend paid by a floating-rate security will increase as interest rates rise.

If the Fund owns a preferred security that is deferring or suspending payments of dividends, the Fund may be required to report the distribution on its tax returns, even though it may not have received any income. Moreover, in the event an issuer of preferred securities experiences economic difficulties, the issuer's preferred securities may lose substantial value due to the reduced likelihood that the issuer's board of directors will declare a dividend and the fact that the preferred securities may be subordinated to other securities of the same issuer.

Convertible securities are subject to the risks of both debt securities and equity securities. As with equity securities, declining common stock values may cause the value of the Fund's investments to decline. A debt security tends to decrease in value when interest rates rise. Moreover, many convertible securities are subject to the same risks as lower rated debt securities.

Hybrid securities potentially are more volatile than traditional equity securities and may carry credit risk and liquidity risk.

Perpetual subordinated debt typically has lower credit ratings and lower priority than other obligations of an issuer during bankruptcy, presenting a greater risk for nonpayment, and increasing as the priority of the obligation becomes lower.

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

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

The Fund's use of a representative sampling approach will result in its holding a smaller number of securities than are in the underlying Index, and may be subject to greater volatility.

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

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

The S&P U.S. Preferred Stock Index is an unmanaged index designed to measure the performance of the US preferred stock market.

The Global Industry Classification Standard was developed by and is the exclusive property and a service mark of MSCI, Inc. and Standard & Poor's.

Wells Fargo is the Index Provider for the Fund. The Wells Fargo® Hybrid and Preferred Securities Floating and Variable Rate Index is a service mark of Wells Fargo & Company and has been licensed for use by the Adviser. The Fund is not sponsored, issued or advised by Wells Fargo & Company, Wells Fargo Securities, LLC or their subsidiaries and affiliates (collectively, "Wells Fargo") and Wells Fargo makes no representation regarding the advisability of investing in the Fund. The Fund is entitled to use the Underlying Index pursuant to a sub-licensing agreement with the Adviser.

as of 03/03/2015
1:28 PM EST

VRP
Intraday Stats

  • Last Trade $25.07
  • Current IIV $24.88
  • Change $0.02
  • % Change 0.09%
as of 03/02/2015
  • NAV at market close $25.01
as of 03/02/2015

Fund Yield

  • SEC 30 Day Yield 4.95%
  • Distribution Yield 4.94%
  • 30-Day SEC Unsubsidized Yield
    as of 03/02/2015
    4.95%
as of 03/02/2015

Prior Close

  • Closing Price $25.05
  • Bid/Ask Midpoint $25.06
  • Bid/Ask Prem/Disc $0.05
  • Bid/Ask Prem/Disc 0.20%
as of 02/27/2015

Fund Characteristics

  • Effective Duration 4.06 yrs
  • Yield to Maturity 4.46%
  • Yield to Worst 4.57%
  • Years to Maturity 43.49
  • Weighted Avg Coupon 5.38%
  • Weighted Avg Price
    as of 03/02/2015
    98.50
Source: Aladdin (BRS)

Fund Details

  • Fund Ticker VRP
  • CUSIP # 73937B597
  • ISIN US73937B5975
  • Intraday NAV VRPIV
  • Index Ticker PFLOT
  • Index Provider Wells Fargo
  • Management Fee 0.50%
  • Total Expense Ratio 0.50%
  • Marginable Yes
  • Short Selling Yes
  • Options No
  • Exchange NYSE Arca
  • Inception Date 05/01/2014
  • # of Holdings 91
    as of 03/02/2015
as of 03/03/2015

Quick Facts

  • Previous Close $25.05
  • Open $25.12
  • Today's High $25.12
  • Today's Low $25.04
  • Today's Volume 60,278
  • 52 Week High $26.74
  • 52 Week Low $24.30
  • Shares Outstanding 5.60MM
  • Market Value $140.1MM