Market Overview

No Long-Term Cap Gains Distributions For Most PowerShares ETFs


Invesco's (NYSE: IVZ) PowerShares unit, the fourth-largest U.S. ETF issuer, said today that 114 of its 116 ETFs will not be subject to long-term capital gains distributions in 2011. The two funds that will be are the PowerShares Active US Real Estate ETF (NYSE: PSR) and the PowerShares S&P 500 Buy Write ETF (NYSE: PBP).

The PowerShares S&P 500 Buy Write ETF is expected to have a distribution of eight cents to 13 cents per share based on current estimates, while the estimated distribution on the PowerShares Active US Real Estate ETF six cents to 12 cents.

The ex-date for the 2011 capital gains distributions is anticipated to be Tuesday, December 27, 2011. The record date is anticipated to be Thursday, December 29, 2011, and the pay date is anticipated to be Friday, December 30, 2011.

The two PowerShares ETFs expected to make capital gains distributions this year represent less than 0.2% of franchise assets. Both of these funds are expected to see long-term capital gains distributions under 1% of NAV per share, PowerShares said in a statement.

"We strive to minimize the amount of capital gains incurred by our ETF portfolios. For the ninth consecutive year, we are pleased that the process has prevented capital gains distributions for the vast majority of PowerShares ETFs," said Ben Fulton, Invesco PowerShares managing director of global ETFs, in the statement. "This highlights one of the many advantages ETFs can potentially provide shareholders seeking to maximize real returns."

PowerShares had $43.3 billion in assets under management at the end of November, according to data from the National Stock Exchange.

Posted-In: News Sector ETFs Broad U.S. Equity ETFs Dividends Dividends Specialty ETFs New ETFs Emerging Market ETFs


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