ETF Allocation Portfolio, Series 5 Fact Card (PDF)
INVESCO UNIT TRUSTS
Finding the Right Mix Overview Invesco Unit Trusts now offers a passive asset allocation portfolio designed to provide broad market exposure to global equity, fixed income, and alternative investment categories. Along with broad exposure, the portfolio may provide sector and market capitalization diversification within the assets classes through the use of ETFs.
The financial world is full of investment opportunities, offering countless avenues to pursue. Selecting the right combination of these opportunities is the challenge. How do you choose an investment mix that will help you to achieve your financial goals? It all depends on your needs and objectives, time horizon, and risk tolerance. Whatever your objective, allocation among asset classes is critical in structuring a successful portfolio. Invesco Unit Trusts is excited to offer you a new allocation strategy that packages fixed income, equities and alternatives into an “all-in-one” investment strategy: the ETF Allocation Portfolio.
The ETF Allocation Portfolio offers: A moderate allocation portfolio Convenient all-in-one investment across multiple asset classes to implement a passive asset allocation for portfolios that combines the unique performance and risk attributes of global equities, fixed income and alternative investments in a unit trust
Transparency
Rebalancing opportunities
A unit trust offers a distinct selection process, portfolio transparency and a set termination date allowing investors to understand the objectives, components and interval of their investment strategy
The 15-month term for the unit trust allows the portfolio of subsequent series, if any, to rebalance in order to reflect market conditions. In selecting the ETF Allocation Portfolio, Invesco will consider current economic conditions and market analysis to determine allocations in developed and emerging markets and levels of exposure to equities, fixed income and alternative asset classes
ETF ALLOCATATION PORTFOLIO Symbol Term of trust Offering period Sales charge
ETFA 15 Months
INVESCO SELECTION PROCESS
Approx. 3 months
Breakpoints begin at
$50,000
Number of securities
15–20
Current Economic and Market Conditions
Economic and Market Analysis
2.95%
Listed ETF/ETN Universe
ETF/ETN Analysis
Regional, Country, Sector Allocations
NOT FDIC INSURED
Developed and Emerging Markets
Traditional and Non-traditional Asset Classes
ETFA
ETF Allocation Portfolio
MAY LOSE VALUE
NO BANK GUARANTEE
INVESCO UNIT TRUSTS Since it’s impossible to predict the future or determine the next best-performing asset class, asset allocation may help increase the odds of having a portion of your assets in the right place at the right time.
Below is the model breakdown for the ETFA Allocation Portfolio. The portfolio is a moderate allocation with a 60/25/15 ratio to Fixed Income/Equity/Alternative Investments. Please refer to each series for the specific asset class breakdowns. ETFA—MODERATE ALLOCATION MODEL
Equity: 60% U.S. Equity: 30% Large-Caps: 18% Mid Small Caps: 12% International: 30% Developed Europe: 15% Developed Asia: 3% Emerging Markets: 12%
Fixed Income: 25% U.S. Fixed Income: 20% Non-U.S. Fixed Income: 5%
Alternative Investments: 15% REITS: 5% Commodities: 5% TIPS (Treasury Inflation-Protected Securities): 5%
Equity Fixed Income Alternative Investments
The chart below illustrates the yearly rotation of asset class performance. The ETFA Portfolio offers exposure to various asset classes, which may increase the potential for returns and help offset volatility. 10-YEAR INVESTMENT RETURN CHART Annual Returns for Key Indices (2000–2009)
Municipal Bonds (Muni) Investment Grade Bonds (Inv Gr) Real Estate (REIT) Int’l Developed Markets (Int Dv) Emerging Markets (EM) Small Cap Stocks (S-Cap) Mid-Cap Stocks (M-Cap) Large-Cap Stocks (L-Cap) Commodities (Com)
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
Com 49.74
REITS 13.93 Inv Gr 8.44 S-Cap 6.54 Muni 5.13 M-Cap -0.60 EM -2.62 L-Cap -11.89 Int Dv -21.44 Com -31.93
Com 32.07 Inv Gr 10.25 Muni 9.60 REITS 3.82 EM -6.17 M-Cap -14.51 S-Cap -14.63 Int Dv -15.94 L-Cap -22.10
EM 55.82 S-Cap 38.79 Int Dv 38.59 REITS 37.13 M-Cap 35.62 L-Cap 28.68 Com 20.72 Muni 5.31 Inv Gr 4.10
REITS 31.58 EM 25.55 S-Cap 22.65 Int Dv 20.25 Com 17.28 M-Cap 16.48 L-Cap 10.88 Muni 4.48 Inv Gr 4.34
EM 34.00 Com 25.55 Int Dv 13.54 M-Cap 12.56 REITS 12.16 S-Cap 7.68 L-Cap 4.91 Muni 3.51 Inv Gr 2.43
REITS 35.06 EM 32.17 Int Dv 26.34 L-Cap 15.79 S-Cap 15.12 M-Cap 10.32 Muni 4.84 Inv Gr 4.33 Com -15.09
EM 39.39 Com 32.67 Int Dv 11.17 M-Cap 7.98 Inv Gr 6.97 L-Cap 5.49 Muni 3.36 S-Cap -0.30 REITS -15.69
Inv Gr 5.24 Muni -2.47 S-Cap -31.07 M-Cap -36.23 L-Cap -37.00 REITS -37.73 Int Dv -43.38 Com -46.49 EM -53.33
EM 78.51 M-Cap 37.38 Int Dv 31.78 REITS 27.99 L-Cap 26.46 S-Cap 25.57 Com 13.48 Muni 12.91 Inv Gr 5.93
REITS 26.37 M-Cap 17.51 S-Cap 11.80 Muni 11.68 Inv Gr 11.63 L-Cap -9.10 Int Dv -14.17 EM -30.83
The above table is presented for information purposes only and does not represent the performance of any particular investment. The UIT has no operating performance history. Performance of all cited indexes is calculated on a total return basis with dividends reinvested. The indexes do not include any expenses, fees or charges and are unmanaged and should not be considered investments. It is not possible to invest directly in an index. See page 4 for index definitions. Past performance is no guarantee of future results. Diversification does not assure a profit or protect against a loss. The value of equity investments are more volatile than the other securities; small company stocks are more volatile than large company stocks. Foreign securities investments involve risks in addition to those associated with domestic securities, including currency, political, economic and market risks. Investing in small- and mid-size companies involves risks in addition to those associated with large-size companies. REITs are more susceptible to the risks generally associated with investments in real estate. Bonds are subject to interest rate, price and credit risks. Prices tend to be inversely affected by changes in interest rates. Commodities can be extremely volatile. Source: Lipper Inc. as of December 31, 2009.
INVESCO UNIT TRUSTS
ETF Allocation Portfolio, Series 5 TRUST SPECIFICS Deposit information Public offering price per unit1 $10.00 Minimum investment ($250 for IRAs) $1,000.00 Deposit date 12/09/10 Termination date 03/12/12 Distribution date 04/25/11, 07/25/11, 10/25/11 & final Record date 04/10/11, 07/10/11, 10/10/11 & final Term of trust 15 months NASDAQ symbol VKALFX Estimated net annual income $0.22 per unit* Daily liquidity2
SALES CHARGE3 Initial sales charge Deferred sales charge Creation and development fee Maximum sales charge
1.00% 1.45 0.50 2.95
ETFA5 CUSIPS Cash Reinvest Wrap fee cash Wrap fee reinvest
92121G-54-3 92121G-55-0 92121G-56-8 92121G-57-6
Investors in fee-based accounts will not be assessed the initial and deferred sales charge for eligible fee-based purchases and must purchase units with a Wrap Fee CUSIP.
Objective The portfolio seeks above-average capital appreciation. The portfolio seeks to achieve its objective by investing in a portfolio that consists of exchange-traded funds (“ETFs”) that invest in stocks and fixed income securities, and exchange-traded notes (“ETNs”). The Portfolio provides broad market exposure to focused equity and fixed income styles through the use of ETFs. PORTFOLIO COMPOSITION As of the business day before deposit date EXCHANGE-TRADED FUNDS Initial weight
Ticker
iShares S&P 500 Growth Index Fund
8.99%
IVW
iShares S&P 500 Value Index Fund
9.01%
IVE
iShares S&P MidCap 400 Index Fund
5.97%
IJH
U.S. Equity
iShares S&P SmallCap 600 Index Fund
5.96%
IJR
Non-U.S. Equity
Initial weight
Ticker
2.99%
SHY
iShares iBoxx $ High Yield Corporate Bond Fund
6.99%
HYG
iShares iBoxx $ Investment Grade Corporate Bond Fund
7.05%
LQD
Vanguard Intermediate-Term Bond ETF
3.02%
BIV
5.01%
EMB
iShares MSCI Canada Index Fund
2.99%
EWC
iShares MSCI EAFE Small Cap Index Fund
Non-U.S. Fixed Income
3.01%
SCZ
iShares JPMorgan USD Emerging Markets Bond Fund
iShares MSCI Japan Index Fund
3.01%
EWJ
iShares MSCI Pacific ex-Japan Index Fund
3.02%
EPP
10.03%
VWO
iPath Dow Jones-UBS Commodity Index Total Return ETN, Due June 12, 2036
3.99%
DJP
8.03%
VGK
iShares Barclays TIPS Bond Fund
4.96%
TIP
Vanguard REIT ETF
5.97%
VNQ
Vanguard Emerging Markets ETF Vanguard European ETF
BREAKPOINT INFORMATION Transaction amount*
U.S. Fixed Income iShares Barclays 1–3 Year Treasury Bond Fund
EXCHANGE-TRADED NOTES Alternative Investments
Sales charge
Less than $50,000 2.95% $50,000–$99,999 2.70 $100,000–$249,999 2.45 $250,000–$499,999 2.10 $500,000–$999,999 1.85 $1,000,000 or more 1.20
The trust portfolio is provided for informational purposes only and should not be deemed as a recommendation to buy or sell the individual securities shown above. Invesco Van Kampen unit investment trusts are distributed by the sponsor, Van Kampen Funds Inc., and broker dealers including Invesco Distributors, Inc. Both firms are wholly owned, indirect subsidiaries of Invesco Ltd.
PORTFOLIO DIVERSIFICATION As of the business day before deposit date Equities: 60.01% U.S. Equities: 29.93% Non-U.S. Equities: 30.08%
* The breakpoint discounts are also applied on a unit basis using a breakpoint equivalent of $10 per unit and are applied on whichever basis is more favorable to the investor. Please consult the prospectus for details on all discounts.
Fixed Income: 25.06% U.S. Fixed Income: 20.05% Non-U.S. Fixed Income: 5.01 Alternative Investments: 14.92% Commodities: 3.99% TIPS & REITS: 10.93%
I ncluding sales charges. As of deposit date. 2 F unds will typically be mailed within three business days after your redemption request is received. 3 Assuming a public offering price of $10 per unit. 1
NOT FDIC INSURED
MAY LOSE VALUE
NO BANK GUARANTEE
INVESCO UNIT TRUSTS Before investing, investors should carefully read the prospectus and consider the investment objectives, risks, charges and expenses. For this and more complete information about the trust(s), investors should ask their advisers for a prospectus or download one at invesco.com/unittrust.
Index Definitions Investment Grade Bonds are represented by the Barclays Capital Aggregate Bond Index, which is made up of the Barclays Capital Index, MortgageBacked Securities Index, and Asset-Backed Securities Index including securities that are of investment-grade quality or better, have at least one year to maturity and have an outstanding par value of at least $100 million. Municipal Bonds are represented by the Barclays Capital U.S. Insured Municipal Bond Index, an unmanaged market-value-weighted index of investmentgrade municipal bonds with maturities of one year or more. Real Estate is represented by FTSE NAREIT Equity REIT Index, an unmanaged market-weighted index of tax-qualified REITs listed on the New York Stock Exchange, the American Stock Exchange and the Nasdaq National Market System. Small-Cap is represented by the S&P 600 SmallCap Index, an unmanaged index generally representative of the U.S. stock market for roughly the small-cap range of U.S. stocks. Mid-Cap is represented by the Standard & Poor’s MidCap 400 Index, an unmanaged index generally representative of the U.S. stock market for mid-cap companies. Large-Cap is represented by the Morgan Stanley Capital International Europe, Australasia, and Far East Index (“MSCI EAFE”), an unmanaged index generally representative of major overseas stock markets. MSCI EAFE data is U.S. dollar adjusted. Emerging Markets is represented by the MSCI Emerging Markets Index, a free float-adjusted market capitalization index that is designed to measure equity market performance in the global emerging markets. Commodities are represented by the S&P GSCI® Commodity Index, a composite index of commodity sector returns representing an unleveraged, long-only investment in commodity futures that is broadly diversified across the spectrum of commodities.
Invesco 11 Greenway Plaza, Suite 2500 Houston, TX 77046-1188 www.invesco.com
RISK CONSIDERATIONS There is no assurance the trust will achieve its investment objective. An investment in this unit investment trust is subject to market risk, which is the possibility that the market values of securities owned by the trust will decline and that the value of trust units may therefore be less than what you paid for them. This trust is unmanaged and its portfolio is not intended to change during the trust’s life except in limited circumstances. Accordingly, you can lose money investing in this trust. An issuer may be unwilling or unable to declare dividends in the future, or may reduce the level of dividends declared. This may result in a reduction in the value of the units. The value of the fixed income securities in certain of the ETFs will generally fall if interest rates, in general, rise. No one can predict whether interest rates will rise or fall in the future. A security issuer may be unable to make interest and/or principal payments in the future. This may reduce the level of dividends certain of the ETFs pay which would reduce your income and cause the value of the units to fall. The portfolio invests in shares of ETFs. You should understand the section titled “ETFs” before you invest. In particular, shares of ETFs may trade at a discount from their net asset value and are subject to risks related to factors such as management’s ability to achieve a fund’s objective, market conditions affecting a fund’s investments and use of leverage. In addition, there is the risk that an active secondary market may not develop or be maintained, or trading may be halted by the exchange on which they trade, which may impact the portfolio’s ability to sell the ETF shares. The portfolio and the underlying funds have management and operating expenses. You will bear not only your share of the portfolio’s expenses, but also the expenses of the underlying funds. By investing in other funds, the portfolio incurs greater expenses than you would incur if you invested directly in the funds. Securities of foreign issuers held by certain of the ETFs or ETNs in the portfolio present risks beyond those of U.S. issuers. These risks may include market and political factors related to the issuer’s foreign market, international trade conditions, less regulation, smaller or less liquid markets, increased volatility, differing accounting practices and changes in the value of foreign currencies. Certain ETFs in the portfolio invest in securities in emerging markets. Investing in emerging markets entails the risk that news and events unique to a country or region will affect those markets and their issuers. Countries with emerging markets may have relatively unstable governments, may present the risks of nationalization of businesses, restrictions on foreign ownership and prohibitions on the repatriation of assets. Certain ETFs in the portfolio invest in corporate bonds. The financial markets, including those for corporate bonds, have recently experienced periods of extreme illiquidity and volatility. Due to these significant difficulties in the financial markets, there can be substantial uncertainty in assessing the value of an issuer’s assets or the extent of its obligations. For these or other reasons, the ratings of the bonds in certain ETFs may not accurately reflect the current financial condition or prospects of the issuer of the bond. Certain of the securities held by ETFs in the portfolio are issued by issuers that are considered to be “value” companies. Such securities are subject to the risk of inaccurately estimating certain fundamental factors and will generally underperform during periods when value style investments are out of favor. Certain of the securities held by ETFs in the portfolio are issued by issuers that are considered to be “growth” companies. Securities of growth companies may be more volatile than other securities. If the perception of an issuer’s growth potential is not realized, the securities may not perform as expected, reducing the portfolio’s return. Certain of the securities held by ETFs in the portfolio are stocks of small-cap companies. These stocks are often more volatile and have lower trading volumes than stocks of larger companies. Small companies may have limited products or financial resources, management inexperience and less publicly available information. Certain ETFs in the portfolio may invest in securities rated below investment grade and are considered to be “junk” securities. These securities are considered to be speculative and are subject to greater market and credit risks. Accordingly, the risk of default is higher than investment grade securities. In addition, these securities may be more sensitive to interest rate changes and may be more likely to make early returns of principal. The portfolio invests in shares of ETNs. ETNs are synthetic investment products that do not represent ownership of the securities of the indices they track, and are backed only by the issuer’s credit. In particular, an investment in these notes is subject to risks related to factors such as the note issuer’s credit, price volatility, limited portfolio diversification, limited liquidity, issuer default, uncertain principal repayment, and uncertain federal income tax treatment. The ETNs charge an annual investor fee. You will bear not only your share of the portfolio’s expenses, but also the fees of the underlying ETNs. By investing in other notes, the portfolio incurs greater expenses than you would incur if you invested directly in the ETNs.
Invesco Distributors, Inc.
U-ETFA5-FCT-1 12.10
* T he estimated Net Annual Income per unit that appears on the reverse side of this page is as of 12/07/10 and is based on the most recently declared quarterly dividends, interim and final dividends of securities held in the trust portfolio, accounting for any foreign withholding taxes or scheduled income payments. The actual net annual income distributions you receive will vary from the estimate set forth above with changes in the trust’s fees and expenses, in income received, currency fluctuations and with the call, maturity or sale of securities. The actual net annual distributions are expected to decrease over time because a portion of the securities included in the trust will be sold to pay for organization costs, deferred sales charges and the creation and development fee. Securities may also be sold to pay regular fees and expenses during the trust’s life.
Finding the Right Mix Overview Invesco Unit Trusts now offers a passive asset allocation portfolio designed to provide broad market exposure to global equity, fixed income, and alternative investment categories. Along with broad exposure, the portfolio may provide sector and market capitalization diversification within the assets classes through the use of ETFs.
The financial world is full of investment opportunities, offering countless avenues to pursue. Selecting the right combination of these opportunities is the challenge. How do you choose an investment mix that will help you to achieve your financial goals? It all depends on your needs and objectives, time horizon, and risk tolerance. Whatever your objective, allocation among asset classes is critical in structuring a successful portfolio. Invesco Unit Trusts is excited to offer you a new allocation strategy that packages fixed income, equities and alternatives into an “all-in-one” investment strategy: the ETF Allocation Portfolio.
The ETF Allocation Portfolio offers: A moderate allocation portfolio Convenient all-in-one investment across multiple asset classes to implement a passive asset allocation for portfolios that combines the unique performance and risk attributes of global equities, fixed income and alternative investments in a unit trust
Transparency
Rebalancing opportunities
A unit trust offers a distinct selection process, portfolio transparency and a set termination date allowing investors to understand the objectives, components and interval of their investment strategy
The 15-month term for the unit trust allows the portfolio of subsequent series, if any, to rebalance in order to reflect market conditions. In selecting the ETF Allocation Portfolio, Invesco will consider current economic conditions and market analysis to determine allocations in developed and emerging markets and levels of exposure to equities, fixed income and alternative asset classes
ETF ALLOCATATION PORTFOLIO Symbol Term of trust Offering period Sales charge
ETFA 15 Months
INVESCO SELECTION PROCESS
Approx. 3 months
Breakpoints begin at
$50,000
Number of securities
15–20
Current Economic and Market Conditions
Economic and Market Analysis
2.95%
Listed ETF/ETN Universe
ETF/ETN Analysis
Regional, Country, Sector Allocations
NOT FDIC INSURED
Developed and Emerging Markets
Traditional and Non-traditional Asset Classes
ETFA
ETF Allocation Portfolio
MAY LOSE VALUE
NO BANK GUARANTEE
INVESCO UNIT TRUSTS Since it’s impossible to predict the future or determine the next best-performing asset class, asset allocation may help increase the odds of having a portion of your assets in the right place at the right time.
Below is the model breakdown for the ETFA Allocation Portfolio. The portfolio is a moderate allocation with a 60/25/15 ratio to Fixed Income/Equity/Alternative Investments. Please refer to each series for the specific asset class breakdowns. ETFA—MODERATE ALLOCATION MODEL
Equity: 60% U.S. Equity: 30% Large-Caps: 18% Mid Small Caps: 12% International: 30% Developed Europe: 15% Developed Asia: 3% Emerging Markets: 12%
Fixed Income: 25% U.S. Fixed Income: 20% Non-U.S. Fixed Income: 5%
Alternative Investments: 15% REITS: 5% Commodities: 5% TIPS (Treasury Inflation-Protected Securities): 5%
Equity Fixed Income Alternative Investments
The chart below illustrates the yearly rotation of asset class performance. The ETFA Portfolio offers exposure to various asset classes, which may increase the potential for returns and help offset volatility. 10-YEAR INVESTMENT RETURN CHART Annual Returns for Key Indices (2000–2009)
Municipal Bonds (Muni) Investment Grade Bonds (Inv Gr) Real Estate (REIT) Int’l Developed Markets (Int Dv) Emerging Markets (EM) Small Cap Stocks (S-Cap) Mid-Cap Stocks (M-Cap) Large-Cap Stocks (L-Cap) Commodities (Com)
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
Com 49.74
REITS 13.93 Inv Gr 8.44 S-Cap 6.54 Muni 5.13 M-Cap -0.60 EM -2.62 L-Cap -11.89 Int Dv -21.44 Com -31.93
Com 32.07 Inv Gr 10.25 Muni 9.60 REITS 3.82 EM -6.17 M-Cap -14.51 S-Cap -14.63 Int Dv -15.94 L-Cap -22.10
EM 55.82 S-Cap 38.79 Int Dv 38.59 REITS 37.13 M-Cap 35.62 L-Cap 28.68 Com 20.72 Muni 5.31 Inv Gr 4.10
REITS 31.58 EM 25.55 S-Cap 22.65 Int Dv 20.25 Com 17.28 M-Cap 16.48 L-Cap 10.88 Muni 4.48 Inv Gr 4.34
EM 34.00 Com 25.55 Int Dv 13.54 M-Cap 12.56 REITS 12.16 S-Cap 7.68 L-Cap 4.91 Muni 3.51 Inv Gr 2.43
REITS 35.06 EM 32.17 Int Dv 26.34 L-Cap 15.79 S-Cap 15.12 M-Cap 10.32 Muni 4.84 Inv Gr 4.33 Com -15.09
EM 39.39 Com 32.67 Int Dv 11.17 M-Cap 7.98 Inv Gr 6.97 L-Cap 5.49 Muni 3.36 S-Cap -0.30 REITS -15.69
Inv Gr 5.24 Muni -2.47 S-Cap -31.07 M-Cap -36.23 L-Cap -37.00 REITS -37.73 Int Dv -43.38 Com -46.49 EM -53.33
EM 78.51 M-Cap 37.38 Int Dv 31.78 REITS 27.99 L-Cap 26.46 S-Cap 25.57 Com 13.48 Muni 12.91 Inv Gr 5.93
REITS 26.37 M-Cap 17.51 S-Cap 11.80 Muni 11.68 Inv Gr 11.63 L-Cap -9.10 Int Dv -14.17 EM -30.83
The above table is presented for information purposes only and does not represent the performance of any particular investment. The UIT has no operating performance history. Performance of all cited indexes is calculated on a total return basis with dividends reinvested. The indexes do not include any expenses, fees or charges and are unmanaged and should not be considered investments. It is not possible to invest directly in an index. See page 4 for index definitions. Past performance is no guarantee of future results. Diversification does not assure a profit or protect against a loss. The value of equity investments are more volatile than the other securities; small company stocks are more volatile than large company stocks. Foreign securities investments involve risks in addition to those associated with domestic securities, including currency, political, economic and market risks. Investing in small- and mid-size companies involves risks in addition to those associated with large-size companies. REITs are more susceptible to the risks generally associated with investments in real estate. Bonds are subject to interest rate, price and credit risks. Prices tend to be inversely affected by changes in interest rates. Commodities can be extremely volatile. Source: Lipper Inc. as of December 31, 2009.
INVESCO UNIT TRUSTS
ETF Allocation Portfolio, Series 5 TRUST SPECIFICS Deposit information Public offering price per unit1 $10.00 Minimum investment ($250 for IRAs) $1,000.00 Deposit date 12/09/10 Termination date 03/12/12 Distribution date 04/25/11, 07/25/11, 10/25/11 & final Record date 04/10/11, 07/10/11, 10/10/11 & final Term of trust 15 months NASDAQ symbol VKALFX Estimated net annual income $0.22 per unit* Daily liquidity2
SALES CHARGE3 Initial sales charge Deferred sales charge Creation and development fee Maximum sales charge
1.00% 1.45 0.50 2.95
ETFA5 CUSIPS Cash Reinvest Wrap fee cash Wrap fee reinvest
92121G-54-3 92121G-55-0 92121G-56-8 92121G-57-6
Investors in fee-based accounts will not be assessed the initial and deferred sales charge for eligible fee-based purchases and must purchase units with a Wrap Fee CUSIP.
Objective The portfolio seeks above-average capital appreciation. The portfolio seeks to achieve its objective by investing in a portfolio that consists of exchange-traded funds (“ETFs”) that invest in stocks and fixed income securities, and exchange-traded notes (“ETNs”). The Portfolio provides broad market exposure to focused equity and fixed income styles through the use of ETFs. PORTFOLIO COMPOSITION As of the business day before deposit date EXCHANGE-TRADED FUNDS Initial weight
Ticker
iShares S&P 500 Growth Index Fund
8.99%
IVW
iShares S&P 500 Value Index Fund
9.01%
IVE
iShares S&P MidCap 400 Index Fund
5.97%
IJH
U.S. Equity
iShares S&P SmallCap 600 Index Fund
5.96%
IJR
Non-U.S. Equity
Initial weight
Ticker
2.99%
SHY
iShares iBoxx $ High Yield Corporate Bond Fund
6.99%
HYG
iShares iBoxx $ Investment Grade Corporate Bond Fund
7.05%
LQD
Vanguard Intermediate-Term Bond ETF
3.02%
BIV
5.01%
EMB
iShares MSCI Canada Index Fund
2.99%
EWC
iShares MSCI EAFE Small Cap Index Fund
Non-U.S. Fixed Income
3.01%
SCZ
iShares JPMorgan USD Emerging Markets Bond Fund
iShares MSCI Japan Index Fund
3.01%
EWJ
iShares MSCI Pacific ex-Japan Index Fund
3.02%
EPP
10.03%
VWO
iPath Dow Jones-UBS Commodity Index Total Return ETN, Due June 12, 2036
3.99%
DJP
8.03%
VGK
iShares Barclays TIPS Bond Fund
4.96%
TIP
Vanguard REIT ETF
5.97%
VNQ
Vanguard Emerging Markets ETF Vanguard European ETF
BREAKPOINT INFORMATION Transaction amount*
U.S. Fixed Income iShares Barclays 1–3 Year Treasury Bond Fund
EXCHANGE-TRADED NOTES Alternative Investments
Sales charge
Less than $50,000 2.95% $50,000–$99,999 2.70 $100,000–$249,999 2.45 $250,000–$499,999 2.10 $500,000–$999,999 1.85 $1,000,000 or more 1.20
The trust portfolio is provided for informational purposes only and should not be deemed as a recommendation to buy or sell the individual securities shown above. Invesco Van Kampen unit investment trusts are distributed by the sponsor, Van Kampen Funds Inc., and broker dealers including Invesco Distributors, Inc. Both firms are wholly owned, indirect subsidiaries of Invesco Ltd.
PORTFOLIO DIVERSIFICATION As of the business day before deposit date Equities: 60.01% U.S. Equities: 29.93% Non-U.S. Equities: 30.08%
* The breakpoint discounts are also applied on a unit basis using a breakpoint equivalent of $10 per unit and are applied on whichever basis is more favorable to the investor. Please consult the prospectus for details on all discounts.
Fixed Income: 25.06% U.S. Fixed Income: 20.05% Non-U.S. Fixed Income: 5.01 Alternative Investments: 14.92% Commodities: 3.99% TIPS & REITS: 10.93%
I ncluding sales charges. As of deposit date. 2 F unds will typically be mailed within three business days after your redemption request is received. 3 Assuming a public offering price of $10 per unit. 1
NOT FDIC INSURED
MAY LOSE VALUE
NO BANK GUARANTEE
INVESCO UNIT TRUSTS Before investing, investors should carefully read the prospectus and consider the investment objectives, risks, charges and expenses. For this and more complete information about the trust(s), investors should ask their advisers for a prospectus or download one at invesco.com/unittrust.
Index Definitions Investment Grade Bonds are represented by the Barclays Capital Aggregate Bond Index, which is made up of the Barclays Capital Index, MortgageBacked Securities Index, and Asset-Backed Securities Index including securities that are of investment-grade quality or better, have at least one year to maturity and have an outstanding par value of at least $100 million. Municipal Bonds are represented by the Barclays Capital U.S. Insured Municipal Bond Index, an unmanaged market-value-weighted index of investmentgrade municipal bonds with maturities of one year or more. Real Estate is represented by FTSE NAREIT Equity REIT Index, an unmanaged market-weighted index of tax-qualified REITs listed on the New York Stock Exchange, the American Stock Exchange and the Nasdaq National Market System. Small-Cap is represented by the S&P 600 SmallCap Index, an unmanaged index generally representative of the U.S. stock market for roughly the small-cap range of U.S. stocks. Mid-Cap is represented by the Standard & Poor’s MidCap 400 Index, an unmanaged index generally representative of the U.S. stock market for mid-cap companies. Large-Cap is represented by the Morgan Stanley Capital International Europe, Australasia, and Far East Index (“MSCI EAFE”), an unmanaged index generally representative of major overseas stock markets. MSCI EAFE data is U.S. dollar adjusted. Emerging Markets is represented by the MSCI Emerging Markets Index, a free float-adjusted market capitalization index that is designed to measure equity market performance in the global emerging markets. Commodities are represented by the S&P GSCI® Commodity Index, a composite index of commodity sector returns representing an unleveraged, long-only investment in commodity futures that is broadly diversified across the spectrum of commodities.
Invesco 11 Greenway Plaza, Suite 2500 Houston, TX 77046-1188 www.invesco.com
RISK CONSIDERATIONS There is no assurance the trust will achieve its investment objective. An investment in this unit investment trust is subject to market risk, which is the possibility that the market values of securities owned by the trust will decline and that the value of trust units may therefore be less than what you paid for them. This trust is unmanaged and its portfolio is not intended to change during the trust’s life except in limited circumstances. Accordingly, you can lose money investing in this trust. An issuer may be unwilling or unable to declare dividends in the future, or may reduce the level of dividends declared. This may result in a reduction in the value of the units. The value of the fixed income securities in certain of the ETFs will generally fall if interest rates, in general, rise. No one can predict whether interest rates will rise or fall in the future. A security issuer may be unable to make interest and/or principal payments in the future. This may reduce the level of dividends certain of the ETFs pay which would reduce your income and cause the value of the units to fall. The portfolio invests in shares of ETFs. You should understand the section titled “ETFs” before you invest. In particular, shares of ETFs may trade at a discount from their net asset value and are subject to risks related to factors such as management’s ability to achieve a fund’s objective, market conditions affecting a fund’s investments and use of leverage. In addition, there is the risk that an active secondary market may not develop or be maintained, or trading may be halted by the exchange on which they trade, which may impact the portfolio’s ability to sell the ETF shares. The portfolio and the underlying funds have management and operating expenses. You will bear not only your share of the portfolio’s expenses, but also the expenses of the underlying funds. By investing in other funds, the portfolio incurs greater expenses than you would incur if you invested directly in the funds. Securities of foreign issuers held by certain of the ETFs or ETNs in the portfolio present risks beyond those of U.S. issuers. These risks may include market and political factors related to the issuer’s foreign market, international trade conditions, less regulation, smaller or less liquid markets, increased volatility, differing accounting practices and changes in the value of foreign currencies. Certain ETFs in the portfolio invest in securities in emerging markets. Investing in emerging markets entails the risk that news and events unique to a country or region will affect those markets and their issuers. Countries with emerging markets may have relatively unstable governments, may present the risks of nationalization of businesses, restrictions on foreign ownership and prohibitions on the repatriation of assets. Certain ETFs in the portfolio invest in corporate bonds. The financial markets, including those for corporate bonds, have recently experienced periods of extreme illiquidity and volatility. Due to these significant difficulties in the financial markets, there can be substantial uncertainty in assessing the value of an issuer’s assets or the extent of its obligations. For these or other reasons, the ratings of the bonds in certain ETFs may not accurately reflect the current financial condition or prospects of the issuer of the bond. Certain of the securities held by ETFs in the portfolio are issued by issuers that are considered to be “value” companies. Such securities are subject to the risk of inaccurately estimating certain fundamental factors and will generally underperform during periods when value style investments are out of favor. Certain of the securities held by ETFs in the portfolio are issued by issuers that are considered to be “growth” companies. Securities of growth companies may be more volatile than other securities. If the perception of an issuer’s growth potential is not realized, the securities may not perform as expected, reducing the portfolio’s return. Certain of the securities held by ETFs in the portfolio are stocks of small-cap companies. These stocks are often more volatile and have lower trading volumes than stocks of larger companies. Small companies may have limited products or financial resources, management inexperience and less publicly available information. Certain ETFs in the portfolio may invest in securities rated below investment grade and are considered to be “junk” securities. These securities are considered to be speculative and are subject to greater market and credit risks. Accordingly, the risk of default is higher than investment grade securities. In addition, these securities may be more sensitive to interest rate changes and may be more likely to make early returns of principal. The portfolio invests in shares of ETNs. ETNs are synthetic investment products that do not represent ownership of the securities of the indices they track, and are backed only by the issuer’s credit. In particular, an investment in these notes is subject to risks related to factors such as the note issuer’s credit, price volatility, limited portfolio diversification, limited liquidity, issuer default, uncertain principal repayment, and uncertain federal income tax treatment. The ETNs charge an annual investor fee. You will bear not only your share of the portfolio’s expenses, but also the fees of the underlying ETNs. By investing in other notes, the portfolio incurs greater expenses than you would incur if you invested directly in the ETNs.
Invesco Distributors, Inc.
U-ETFA5-FCT-1 12.10
* T he estimated Net Annual Income per unit that appears on the reverse side of this page is as of 12/07/10 and is based on the most recently declared quarterly dividends, interim and final dividends of securities held in the trust portfolio, accounting for any foreign withholding taxes or scheduled income payments. The actual net annual income distributions you receive will vary from the estimate set forth above with changes in the trust’s fees and expenses, in income received, currency fluctuations and with the call, maturity or sale of securities. The actual net annual distributions are expected to decrease over time because a portion of the securities included in the trust will be sold to pay for organization costs, deferred sales charges and the creation and development fee. Securities may also be sold to pay regular fees and expenses during the trust’s life.
