PowerShares details new PowerShares Variable Rate Preferred Portfolio

By Toni Weeks

San Luis Obispo, Calif., April 11 - PowerShares Exchange-Traded Fund Trust II gave details of its new PowerShares Variable Rate Preferred Portfolio in an N-1A filing with the Securities and Exchange Commission.

The fund will seek investment results that generally correspond, before fees and expenses, to the price and yield of the Wells Fargo Hybrid and Preferred Securities Floating and Variable Rate index, which is a market-capitalization-weighted index designed to track the performance of preferred stocks (and some "hybrid" securities that function like preferred stocks) that pay a floating- or variable-rate dividend or coupon and are issued by U.S. or foreign issuers. It will generally invest at least 90% of its total assets in the securities that comprise the underlying index.

The portfolio management team includes Peter Hubbard, Jeffrey W. Kernagis, Richard Ose, Gary Jones and Philip Fang.

Total annual fund operating expenses will be 0.5% and consist entirely of the 0.5% management fee.

The fund will trade on the NYSE Arca under the symbol "VRP."

Downers Grove, Ill.-based Invesco PowerShares Capital Management LLC will serve as the investment adviser to the fund.

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