SOURCE: PowerShares Capital Management

August 04, 2005 16:31 ET

PowerShares Capital Management LLC Introduces the World's First Micro Cap Exchange Traded Fund

CHICAGO, IL -- (MARKET WIRE) -- August 4, 2005 -- PowerShares continues to "Lead the Intelligent ETF Revolution" with the introduction of the PowerShares Zacks Micro Cap Portfolio, the world's first Micro Cap ETF. The PowerShares ETF will be based on an intelligent index from Zacks Investment Research and will also be the first index to evaluate and remove components on a weekly basis. The anticipated listing on August 18, 2005, will bring the total number of PowerShares ETFs to twenty.

PowerShares Zacks Micro Cap Portfolio (PZI) is based on the Zacks Micro Cap Index (ZAX). The Index is designed to identify a group of micro cap stocks with the greatest potential to outperform passive benchmark micro cap indices and other actively managed U.S. micro cap strategies. Due to their low correlation to large, medium and small-sized companies, micro caps may complement existing blended portfolios by improving risk adjusted performance.

The Zacks Micro Cap Index methodology evaluates 2,300 micro cap stocks to identify the micro cap companies with the greatest capital appreciation potential as determined by Zacks proprietary index methodology. Over the past five years the Zacks Micro Cap Index has delivered excess returns of 15.60% annually with greater monthly downside protection compared to the Russell Micro Cap Index.

Zacks Micro Cap Index History through June 30, 2005

                         1 Year  3 Year  5 Year
Zacks Micro Cap Index     8.28%  23.08%  23.51%
Russell Micro Cap Index   3.06%  13.62%   7.91%
S&P 500 Index             4.43%   6.37%  -3.91%
Past performance does not guarantee future results. Index returns do not represent fund returns. The Index performance results are hypothetical. You can not invest in an index. Fees and expenses were not deducted from hypothetical performance shown nor does the index lend securities. The Russell Micro Cap Index and the S&P 500 Index are unmanaged indexes used as a measurement of change in stock market conditions based on the average performance of approximately 2000 and 500 stocks, respectively.

About PowerShares Capital Management LLC

PowerShares Capital Management LLC is passionate about our goal of efficiently delivering the highest quality institutional investment management available. In this pursuit of investment excellence the PowerShares were created. PowerShares provide institutional caliber asset management in an Exchange Traded Fund through the replication of enhanced and intelligent indexes.

PowerShares Capital Management LLC is an asset management company committed to theoretically sound portfolio construction and empirically verifiable investment management approaches. PowerShares' asset management philosophy and investment discipline are deeply rooted in the application of intuitive factor analysis and model implementation to enhance investment decisions.

About Zacks Investment Research

Zacks Investment Research, based in Chicago, is a firm with over 25 years of experience in providing research to institutional and individual investors. Founded in 1978, Zacks created the first estimate revision model in 1982 and originated the concept of Earnings Surprise. Today's Zacks' models process over 25,000 earnings estimate revisions and changes in broker recommendations weekly from over 185 brokerage firms, produced by more than 3,200 analysts. As one of the top market data and proprietary investment model providers, Zacks clients include some of the more widely known institutions in the financial industry.

Risks of Owning PowerShares Xchange Traded Funds

There are risks involved with investing in ETFs including possible loss of money. Shares are not actively managed and are subject to risk similar to stocks, including those related to short selling and margin maintenance. Shares are not FDIC insured, may lose value, and have no bank guarantee.

The Fund invests primarily in micro cap companies which involve substantially greater risks of loss and price fluctuations than more established companies.

An investor should consider the Fund's investment objective, risks, charges and expenses carefully before investing. For a copy of the prospectus which contains this and other information about the Fund call 800.THE.AMEX or visit the website www.powershares.com for a prospectus. Please read the prospectus carefully before investing.

The information in the prospectus is not complete and may be changed. The portfolio may not sell its Shares until the registration statement filed with the Securities and Exchange Commission is effective. The prospectus is not an offer to sell the portfolio Shares, nor is the portfolio soliciting an offer to buy its Shares in any jurisdiction where the offer or sale is not permitted.

PowerShares is a trademark of PowerShares Capital Management LLC. The Zacks Micro Cap Index is a trademark of Zacks Investment Research ("Zacks") which is licensed for use by PowerShares Capital Management LLC in connection with the PowerShares Fund. The Fund is not sponsored, or endorsed by Zacks and Zacks makes no warranty or representation as to the accuracy and/or completeness of the Index or results to be obtained by any person from use of the Index or the trading of the Product.

ALPS Distributors, Inc. is the distributor of the PowerShares Exchange-Traded Fund Trust.

Contact Information

  • Contact:

    PowerShares Capital Management LLC
    Jason T. J. Schoepke
    800.983.0903 x 207
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    CTA Public Relations
    Bill Conboy
    303-665-4200 x 106
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