PowerShares' S&P 500 BuyWrite ETF Crosses One Year Mark, Outperforming the More Volatile S&P 500 Index Benchmark

Monday, January 12, 2009 1:20 PM

CHICAGO, IL -- (Marketwire) -- 01/12/09 -- Invesco PowerShares Capital Management LLC, a leading provider of exchange-traded funds (ETFs), today announced the one year anniversary of its S&P 500 BuyWrite Portfolio (NYSE: PBP). Since its inception (as of 12/20/07), PBP has outperformed the S&P 500 Index by a cumulative 7.10%.

In April 2008, PBP was recognized at the Capital Link Forum on Closed End Funds and ETFs with The Award for Most Innovative New ETF in 2007, due to its unique ability to provide efficient access to a buy-write options strategy on one of the most widely used benchmarks in the world -- the S&P 500 Index.

"In December of 2007 we launched PBP, the first ETF to make significant use of options strategies, and now -- one year later -- we are able to celebrate the relative outperformance PBP has brought its investors," said Bruce Bond, president of Invesco PowerShares. "We believe a buy-write strategy can be used to reduce volatility and enhance portfolio returns, and this past year's volatility has been a boon for PBP, as it has outperformed nearly every major broad U.S. stock index."(1)

PBP Performance (as of 12/20/08)
                                                          Since     Sharpe
                       1 Year  3 Year  5 Year  10 Year  Inception*  Ratio
                       ------  ------  ------  -------  ----------  ------
PowerShares S&P 500
BuyWrite Portfolio
(NAV)                  -30.67    N/A     N/A     N/A     -30.67     -1.63
After-Tax Held         -31.12    N/A     N/A     N/A     -31.12      N/A
After-Tax Sold         -26.24    N/A     N/A     N/A     -26.24      N/A
Share Price            -30.44    N/A     N/A     N/A     -30.44     -1.50
CBOE S&P 500
 BuyWrite Index        -30.26   -5.8   -0.84    5.01     -30.26     -1.54
S&P 500 Index          -37.77  -9.18   -2.12   -0.23     -37.77     -1.87
PBP Standardized Performance (as of 12/31/08)
                                                          Since
                       1 Year  3 Year  5 Year  10 Year  Inception*
                       ------  ------  ------  -------  ----------
PowerShares S&P 500
BuyWrite Portfolio
 (NAV)                 -29.72%   N/A     N/A     N/A     -28.17%
After Tax Held         -30.18%   N/A     N/A     N/A     -28.62%
After-Tax Sold         -19.24%   N/A     N/A     N/A     -24.10%
Share Price Return     -29.08%   N/A     N/A     N/A     -27.50%
CBOE S&P 500
 BuyWrite Index        -28.65%  -4.84%  -0.55%   2.20%   -27.60%
S&P 500 Index          -37.00%  -8.34%  -2.19%  -1.38%   -35.69%

(1) Source: Invesco PowerShares Capital Management. Major broad U.S. stock indexes are defined as the S&P 500 Index, Russell 3000 Index and the Dow Jones Industrial Average.

* Since inception returns are based on the inception date of the Fund: Dec. 20, 2007.

Sharpe ratios are based on the inception date of the Fund through 12/20/08. Sharpe ratio is the risk-adjusted return and is the return less the risk-free rate divided by the standard deviation.

As stated in the Fund's prospectus, the expense ratio of 0.75% is expressed as a unitary fee to cover expenses incurred in connection with managing the portfolio.

Related Stories