KBW has partnered with Invesco PowerShares on a group of eight, financial services-related ETFs. Additionally, we partnered with ProFunds Group on two leveraged and inverse ETFs. Together, these 10 products make up KBW's family of exchange-traded funds, which were designed to target a range of subsectors within the financial services sector. From time to time, our trading desk acts as a market maker in these ETFs.
|ETF Name||ETF Ticker||Expense Ratio1||Creation Unit Size||# of Stocks||Index Ticker|
|PowerShares KBW Global (Ex-U.S.) Financial Sector Portfolio||KBWX||0.40%||50,000||50-60||KGX|
|PowerShares KBW Bank Portfolio||KBWB||0.35%||50,000||24||BKX|
|PowerShares KBW Regional Banking Portfolio||KBWR||0.35%||50,000||50||KRX|
|ProShares Short KBW Regional Banking2||KRS||0.35%||50,000||50||KRX|
|ProShares Ultra KBW Regional Banking3||KRU||0.35%||50,000||50||KRX|
|PowerShares KBW Insurance Portfolio||KBWI||0.35%||50,000||24||KIX|
|PowerShares KBW Property and Casualty Insurers Portfolio||KBWP||0.35%||50,000||24||KPX|
|PowerShares KBW High Dividend Yield Portfolio||KBWD||0.35%||50,000||24-40||KDX|
|PowerShares KBW Premium Yield Equity REIT Portfolio||KBWY||0.35%||50,000||24-40||KYX|
|PowerShares KBW Capital Markets Portfolio||KBWC||0.35%||50,000||24||KSX|
1 The ratio listed is the total annual fund operating expense ratio, gross of any fee waivers or expense reimbursements.
2,3 Leverage and Inverse ETFs: These funds may not be suitable for all investors and should be used only by knowledgeable investors who understand the potential consequences of seeking daily leveraged investment results. Investing involves risk, including the possible loss of principal. Short ProShares are non-diversified and should lose value when their market indexes rise—a result that is opposite from traditional ETFs—and they entail certain risks including risk associated with the use of derivatives, imperfect benchmark correlation, leverage and market price variance, all of which can increase volatility and decrease performance. Please see their summary and full prospectuses for a more complete description of risks.
2 ProShares Short KBW Regional Banking seeks a return that is -1x the return of an index (target) for a single day, as measured from one NAV calculation to the next.
3 ProShares Ultra KBW Regional Banking seeks a return that is 2x the return of an index (target) for a single day, as measured from one NAV calculation to the next.
Due to the compounding of daily returns, returns over periods other than one day will likely differ in amount and possibly direction from the target return for the same period. These effects may be more pronounced in funds with larger or inverse multiples and in funds with volatile benchmarks.
KBW Indices Rules for Index Management. Please click here for the Indices Rules.
For further information on KBW ETFs, please contact Siddharth Jain at 1-212-887-3835.
The shares ("Shares") of KBW ETFs are not sponsored, endorsed, sold or promoted by Keefe, Bruyette & Woods, Inc. ("KBW"). KBW makes no representation or warranty, express or implied, to the owners of the Shares or any member of the public regarding the advisability of investing in securities generally or in the Shares particularly or the ability of its Indices to track general stock market performance. The only relationship of KBW to Invesco PowerShares Capital Management LLC and ProShares is the licensing of certain trademarks and tradenames of KBW and its Indices which are determined, composed and calculated by KBW without regard to Invesco PowerShares Capital Management LLC and ProShares, the fund, or the Shares. KBW has no obligation to take the needs of Invesco PowerShares Capital Management LLC and ProShares or the owners of the shares into consideration in determining, composing, or calculating the Indices. KBW is not responsible for and has not participated in any determination or calculation made with respect to issuance or redemption of the Shares. KBW has no obligation or liability in connection with the administration, marketing or trading of the Shares.
ETFs trade like stocks, are subject to investment risk, fluctuate in market value and may trade at prices above or below the ETFs net asset value. Investing in a single sector may be subject to more volatility than funds investing in a diverse group of sectors. Brokerage commissions and ETF expenses will reduce returns. In general, ETFs can be expected to move up or down in value with the value of the applicable index. Although ETFs may be bought and sold on the exchange through any brokerage account, ETFs are not individually redeemable from the Fund. Investors may acquire ETFs and tender them for redemption through the Fund in Creation Unit Aggregations only, please see the prospectus for more details. 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. Past performance is not necessarily indicative of future results.
ProShares Ultra KBW Regional Banking (KRU) and ProShares Short KBW Regional Banking (KRS) ETFs seek returns that are either 2x, -1x, respectively, the return of an index or other benchmark (target) for a single day, as measured from one NAV calculation to the next. Due to the compounding of daily returns, ProShares' returns over periods other than one day will likely differ in amount and possibly direction from the target return for the same period. Investors should monitor their ProShares holdings consistent with their strategies, as frequently as daily. For more on correlation, leverage and other risks, please read the prospectus.
An investor should consider the Funds' investment objectives, risks, charges and expenses carefully before investing. This and other information can be found in their prospectuses. For this and more complete information about the Funds, call InvescoPowerShares at 1-800-983-0903 or visit http://invescopowershares.com ; or call ProShares Client Services at 1-866-776-5125 or visit http://www.proshares.com/resources/litcenter/ for a prospectus. The prospectus should be read carefully before investing.
Shares of the ETFs funds are not guaranteed or insured by the FDIC or by another governmental agency; they are not obligations of the FDIC nor are they deposits or obligations of or guaranteed by KBW , Invesco PowerShares Capital Management LLC or ProShares. ETFs are distributed by Invesco Distributors, Inc. the distributor of the PowerShares Exchange-Traded Fund Trust II. PowerShares® is a registered trademark of Invesco PowerShares Capital Management LLC; ProShares are distributed by SEI Investments Distribution Co. which is not affiliated with ProFunds Group or its affiliates.
The following indices: U.S.: KBW Bank Index (BKX), KBW Insurance Index (KIX), KBW Capital Markets Index (KSX), KBW Regional Banking Index (KRX), KBW Mortgage Finance Index (MFX), KBW Property & Casualty Index (KPX), KBW Premium Yield Equity REIT Index (KYX); KBW Financial Sector Dividend Yield Index (KDX) and Global: KBW Global ex-U.S. Financial Sector Index (KGX) are the property of Keefe, Bruyette & Woods, Inc. (KBW).
KBW does not guarantee the accuracy and/or completeness of the Indices, makes no express or implied warranties with respect to the Indices and shall have no liability for any damages, claims, losses or expenses caused by errors in the index calculation. KBW makes no representation regarding the advisability of investing in options on the Index. Past performance is not necessarily indicative of future results.
This communication is not an offer to sell or a solicitation to buy the securities mentioned. The information relating to any company herein is derived from publicly available sources and Keefe, Bruyette & Woods, Inc. makes no representation as to the accuracy or completeness of such information.