UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number			811-21265
PowerShares Exchange-Traded Fund Trust
(Exact name of registrant as specified in charter)
301 W. Roosevelt Road Wheaton, IL					60187
(Address of principal executive offices)					(Zip code)
Andrew Schlossberg President 301 W. Roosevelt Road Wheaton, IL 60187
(Name and address of agent for service)
Registrant’s telephone number, including area code:				800-983-0903
Date of fiscal year end:	April 30
Date of reporting period:		October 31, 2009

Item 1. Reports to Stockholders.

The Registrant’s semi-annual report transmitted to shareholders pursuant to Rule 30e-1 under the Investment Company Act of 1940 is as follows:

2009 Semi-Annual Report to Shareholders

October 31, 2009

PowerShares Dynamic MagniQuant Portfolio

PowerShares Dynamic Market Portfolio

PowerShares Dynamic OTC Portfolio

PowerShares FTSE RAFI US 1000 Portfolio

PowerShares FTSE RAFI US 1500 Small-Mid Portfolio

PowerShares NXQ Portfolio

Table of Contents

Frequency Distribution of Discounts & Premiums	2
Fees and Expenses	4
Broad Market Portfolios
Schedules of Investments
PowerShares Dynamic MagniQuant Portfolio	5
PowerShares Dynamic Market Portfolio	8
PowerShares Dynamic OTC Portfolio	10
PowerShares FTSE RAFI US 1000 Portfolio	12
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio	23
PowerShares NXQ Portfolio	39
Statements of Assets and Liabilities	42
Statements of Operations	44
Statements of Changes in Net Assets	46
Financial Highlights	48
Notes to Financial Statements	51

Frequency Distribution of Discounts & Premiums

Since Inception through October 31, 2009

					Closing Price Above NAV (bps)
Ticker	Fund Name	Inception	Trading Days		0-24		25-49		50-99		100-149		150-199		200+
PIQ	PowerShares Dynamic MagniQuant Portfolio	10/12/06		768		297		21		1		1		0		0
PWC	PowerShares Dynamic Market Portfolio	05/01/03		1524		765		71		12		2		0		0
PWO	PowerShares Dynamic OTC Portfolio	05/01/03		1524		710		38		16		1		1		0
PRF	PowerShares FTSE RAFI US 1000 Portfolio	12/19/05		964		431		14		5		0		0		1
PRFZ	PowerShares FTSE RAFI US 1500 Small-Mid Portfolio	09/20/06		784		309		20		2		0		2		1
PNXQ	PowerShares NXQ Portfolio	04/03/08		399		125		4		0		0		0		0

2

	Closing Price Below NAV (bps)
Ticker	-0-24		-25-49		-50-99		-100-149		-150-199		-200+
PIQ		435		10		3		0		0		0
PWC		660		10		4		0		0		0
PWO		736		18		4		0		0		0
PRF		479		24		8		2		0		0
PRFZ		416		32		2		0		0		0
PNXQ		262		7		1		0		0		0

3

Fees and Expenses

As a shareholder of a Fund of the PowerShares Exchange-Traded Fund Trust, you incur advisory fees and other Fund expenses. The expense examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other funds.

The example is based on an investment of $1,000 invested at the beginning of the period and held through the six-month period ended October 31, 2009.

Actual Expenses

The first line in the following table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading "Expenses Paid During the Six-Month Period" to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line in the following table provides information about hypothetical account values and hypothetical expenses based on each Fund's actual expense ratio and an assumed annualized rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only, and do not reflect any transactional costs such as sales charges and brokerage commissions. Therefore the second line in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

	Beginning Account Value May 1, 2009		Ending Account Value October 31, 2009		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During the Six-Month Period (1)
PowerShares Dynamic MagniQuant Portfolio Actual	$	1,000.00	$	1,110.87		0.65	%	$	3.46
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.93		0.65	%	$	3.31
PowerShares Dynamic Market Portfolio Actual	$	1,000.00	$	1,119.89		0.60	%	$	3.21
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.18		0.60	%	$	3.06
PowerShares Dynamic OTC Portfolio Actual	$	1,000.00	$	1,124.76		0.60	%	$	3.21
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.18		0.60	%	$	3.06
PowerShares FTSE RAFI US 1000 Portfolio Actual	$	1,000.00	$	1,283.40		0.39	%	$	2.24
Hypothetical (5% return before expenses)	$	1,000.00	$	1,023.24		0.39	%	$	1.99
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio Actual	$	1,000.00	$	1,300.93		0.39	%	$	2.26
Hypothetical (5% return before expenses)	$	1,000.00	$	1,023.24		0.39	%	$	1.99
PowerShares NXQ Portfolio Actual	$	1,000.00	$	1,205.13		0.70	%	$	3.89
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.68		0.70	%	$	3.57

(1)  Expenses are calculated using the annualized expense ratio, which represents the ongoing expenses as a percentage of net assets for the six months ended October 31, 2009. Expenses are calculated by multiplying the Fund's annualized expense ratio by the average account value for the period; then multiplying the result by 184 and then dividing the result by 365. Expense ratios for the most recent half-year may differ from expense ratios based on the annualized data in the Financial Highlights.

4

Portfolio Composition

PowerShares Dynamic MagniQuant Portfolio

Sector Breakdown (% of the Fund's Net Assets) as of October 31, 2009

Information Technology	28.1
Consumer Discretionary	16.0
Health Care	12.1
Industrials	11.9
Materials	10.2
Consumer Staples	9.5
Financials	6.7
Energy	2.5
Telecommunication Services	1.9
Utilities	1.1
Money Market Fund	0.1
Other	(0.1	)

Schedule of Investments

PowerShares Dynamic MagniQuant Portfolio

October 31, 2009 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—16.0%
	5,665	Aaron's, Inc.	$	141,908
	3,500	Advance Auto Parts, Inc.		130,410
	3,723	Bally Technologies, Inc.*		146,649
	8,083	Cheesecake Factory, Inc. (The)*		146,949
	2,024	Chipotle Mexican Grill, Inc., Class B*		161,738
	15,672	CKE Restaurants, Inc.		137,130
	5,254	Cracker Barrel Old Country Store, Inc.		174,170
	4,502	Darden Restaurants, Inc.		136,456
	6,452	Discovery Communications, Inc., Class C*		154,977
	9,083	Dress Barn, Inc.*		163,948
	4,919	Family Dollar Stores, Inc.		139,208
	19,523	Ford Motor Co.*		136,661
	7,571	Gap, Inc. (The)		161,565
	11,195	Harte-Hanks, Inc.		131,429
	5,441	Home Depot, Inc. (The)		136,515
	3,415	Jos. A. Bank Clothiers, Inc.*		139,947
	9,420	Maidenform Brands, Inc.*		132,257
	2,690	McDonald's Corp.		157,661
	4,490	McGraw-Hill Cos., Inc. (The)		129,222
	5,745	Men's Wearhouse, Inc. (The)		133,112
	3,413	Netflix, Inc.*		182,425
	4,091	Omnicom Group, Inc.		140,239
	6,351	Papa John's International, Inc.*		142,897
	8,333	PetMed Express, Inc.*		130,745
	7,423	Rent-A-Center, Inc.*		136,286
	3,190	Ross Stores, Inc.		140,392
	2,477	Sherwin-Williams Co. (The)		141,288
	4,473	Steiner Leisure Ltd.*		165,322
	10,047	Tempur-Pedic International, Inc.*		194,610

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	4,033	Tupperware Brands Corp.	$	181,566
	3,632	UniFirst Corp.		152,798
	5,996	Viacom, Inc., Class B*		165,430
				4,765,910
		Consumer Staples—9.5%
	5,749	Alberto-Culver Co.		154,188
	16,157	B&G Foods, Inc., Class A		126,186
	11,930	Central Garden & Pet Co.*		118,346
	13,249	Central Garden & Pet Co., Class A*		125,336
	7,313	Coca-Cola Enterprises, Inc.		139,459
	7,445	ConAgra Foods, Inc.		156,345
	14,375	Del Monte Foods Co.		155,250
	3,874	Hershey Co. (The)		146,398
	3,417	J & J Snack Foods Corp.		133,844
	3,239	Kellogg Co.		166,938
	2,520	Kimberly-Clark Corp.		154,123
	5,340	Kraft Foods, Inc., Class A		146,957
	2,997	Lancaster Colony Corp.		145,594
	2,097	Lorillard, Inc.		162,979
	8,683	Nu Skin Enterprises, Inc., Class A		197,625
	96,121	Rite Aid Corp.*		123,996
	5,532	United Natural Foods, Inc.*		133,376
	4,078	Universal Corp.		169,604
	4,794	Weis Markets, Inc.		169,708
				2,826,252
		Energy—2.5%
	13,719	Cal Dive International, Inc.*		105,362
	15,389	CVR Energy, Inc.*		161,892
	3,095	FMC Technologies, Inc.*		162,797

See Notes to Financial Statements.

5

Schedule of Investments (Continued)

PowerShares Dynamic MagniQuant Portfolio

October 31, 2009 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	2,795	Oceaneering International, Inc.*	$	142,825
	7,763	Pioneer Southwest Energy Partners LP		164,498
				737,374
		Financials—6.7%
	26,019	Advance America Cash Advance Centers, Inc.		128,534
	5,851	American Financial Group, Inc.		143,935
	4,826	American Physicians Capital, Inc.		136,479
	4,247	Argo Group International Holdings Ltd. (Bermuda)*		144,228
	3,075	Chubb Corp. (The)		149,199
	4,027	Commerce Bancshares, Inc.		154,476
	917	Goldman Sachs Group, Inc. (The)		156,046
	6,259	Investment Technology Group, Inc.*		135,007
	5,086	MSCI, Inc., Class A*		154,614
	7,035	PHH Corp.*		113,686
	8,037	SEI Investments Co.		140,406
	3,940	StanCorp Financial Group, Inc.		144,637
	8,169	TD Ameritrade Holding Corp.*		157,662
	3,102	Transatlantic Holdings, Inc.		156,651
				2,015,560
		Health Care—12.1%
	2,740	Allergan, Inc.		154,125
	7,118	AmerisourceBergen Corp.		157,664
	7,283	AmSurg Corp.*		153,453
	6,844	Bristol-Myers Squibb Co.		149,199
	3,438	Chemed Corp.		155,810
	3,380	Emergency Medical Services Corp., Class A*		162,308
	5,184	Forest Laboratories, Inc.*		143,441
	21,620	Health Management Associates, Inc., Class A*		131,882
	3,816	Hospira, Inc.*		170,346
	2,503	Johnson & Johnson		147,802
	4,537	Kinetic Concepts, Inc.*		150,583
	2,142	Laboratory Corp. of America Holdings*		147,562
	2,684	McKesson Corp.		157,631
	2,703	Medco Health Solutions, Inc.*		151,692
	2,897	MEDNAX, Inc.*		150,412
	1,704	Mettler-Toledo International, Inc.*		166,140
	2,256	Millipore Corp.*		151,175
	11,459	Odyssey HealthCare, Inc.*		159,739
	3,405	Owens & Minor, Inc.		139,231
	2,753	Quest Diagnostics, Inc.		153,975
	7,155	RehabCare Group, Inc.*		134,156
	5,648	Sirona Dental Systems, Inc.*		151,988
	5,355	UnitedHealth Group, Inc.		138,962
	2,561	Universal Health Services, Inc., Class B		142,520
				3,621,796
		Industrials—11.9%
	2,097	3M Co.		154,276
	3,902	A.O. Smith Corp.		154,636

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	1,936	Alliant Techsystems, Inc.*	$	150,582
	6,416	Applied Signal Technology, Inc.		131,464
	4,189	AZZ, Inc.*		143,515
	4,544	Carlisle Cos., Inc.		141,046
	7,649	Chart Industries, Inc.*		151,221
	4,228	Cubic Corp.		146,754
	8,841	Deluxe Corp.		125,808
	8,735	DynCorp International, Inc., Class A*		148,495
	7,188	EnerSys*		158,855
	5,941	Exponent, Inc.*		154,525
	2,709	Goodrich Corp.		147,234
	3,796	Hubbell, Inc., Class B		161,444
	3,570	Illinois Tool Works, Inc.		163,934
	8,830	Interline Brands, Inc.*		128,918
	2,969	ITT Corp.		150,528
	6,409	KBR, Inc.		131,192
	2,014	Lockheed Martin Corp.		138,543
	4,432	Michael Baker Corp.*		158,222
	4,993	Pall Corp.		158,478
	3,965	Powell Industries, Inc.*		145,833
	3,181	Raytheon Co.		144,036
	3,264	United Stationers, Inc.*		153,865
				3,543,404
		Information Technology—28.1%
	34,376	3Com Corp.*		176,693
	18,226	Acme Packet, Inc.*		178,433
	6,660	ADTRAN, Inc.		153,446
	4,273	Amphenol Corp., Class A		171,433
	887	Apple, Inc.*		167,200
	12,778	AVX Corp.		144,647
	4,276	BMC Software, Inc.*		158,896
	7,325	Broadridge Financial Solutions, Inc.		152,433
	6,677	CA, Inc.		139,683
	4,279	Cognizant Technology Solutions Corp., Class A*		165,383
	3,038	Computer Sciences Corp.*		154,057
	20,616	Compuware Corp.*		145,549
	9,514	Corning, Inc.		139,000
	9,724	CSG Systems International, Inc.*		158,890
	9,378	EMC Corp.*		154,456
	6,471	Fair Isaac Corp.		131,555
	3,057	Fiserv, Inc.*		140,225
	20,931	Global Cash Access Holdings, Inc.*		132,493
	4,183	Hewitt Associates, Inc., Class A*		148,580
	10,210	i2 Technologies, Inc.*		160,705
	8,324	Informatica Corp.*		176,719
	1,276	International Business Machines Corp.		153,898
	6,836	j2 Global Communications, Inc.*		139,796
	7,700	JDA Software Group, Inc.*		152,768
	4,306	Lender Processing Services, Inc.		171,379

See Notes to Financial Statements.

6

Schedule of Investments (Continued)

PowerShares Dynamic MagniQuant Portfolio

October 31, 2009 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	2,834	ManTech International Corp., Class A*	$	124,299
	21,315	ModusLink Global Solutions, Inc.*		175,209
	5,415	Multi-Fineline Electronix, Inc.*		147,559
	34,454	Novell, Inc.*		140,917
	6,810	Oracle Corp.		143,691
	8,919	Perot Systems Corp., Class A*		267,035
	5,818	Plexus Corp.*		147,195
	6,666	Progress Software Corp.*		153,985
	9,152	Quest Software, Inc.*		153,479
	13,858	Radiant Systems, Inc.*		136,363
	6,590	Red Hat, Inc.*		170,088
	30,243	RF Micro Devices, Inc.*		120,367
	8,171	SAIC, Inc.*		144,708
	8,260	Semtech Corp.*		127,782
	19,753	SonicWALL, Inc.*		156,839
	12,746	SuccessFactors, Inc.*		194,886
	4,308	Sybase, Inc.*		170,424
	4,974	SYNNEX Corp.*		127,981
	7,026	Synopsys, Inc.*		154,572
	3,737	Syntel, Inc.		133,897
	3,870	Tech Data Corp.*		148,724
	8,718	TeleTech Holdings, Inc.*		155,965
	23,543	Tellabs, Inc.*		141,729
	5,579	Teradata Corp.*		155,543
	6,044	Texas Instruments, Inc.		141,732
	16,843	TIBCO Software, Inc.*		147,376
	8,531	Volterra Semiconductor Corp.*		118,154
	4,393	Western Digital Corp.*		147,956
	8,048	Western Union Co. (The)		146,232
	4,782	Wright Express Corp.*		133,466
				8,396,470
		Materials—10.2%
	4,655	Albemarle Corp.		147,005
	4,340	AptarGroup, Inc.		153,245
	6,017	Balchem Corp.		166,009
	3,099	Ball Corp.		152,874
	5,673	Bemis Co., Inc.		146,534
	9,594	Bway Holding Co.*		170,485
	3,588	Ecolab, Inc.		157,728
	7,504	H.B. Fuller Co.		143,401
	4,176	International Flavors & Fragrances, Inc.		159,064
	9,535	LSB Industries, Inc.*		118,234
	1,800	NewMarket Corp.		168,300
	7,383	Packaging Corp. of America		134,961
	6,028	Pactiv Corp.*		139,187
	2,910	Rock-Tenn Co., Class A		127,458
	2,946	Sigma-Aldrich Corp.		152,986
	3,058	Silgan Holdings, Inc.		164,367
	5,781	Sonoco Products Co.		154,642
	2,840	Stepan Co.		162,562

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	5,602	Valspar Corp. (The)	$	142,123
	8,733	W.R. Grace & Co.*		191,165
				3,052,330
		Telecommunication Services—1.9%
	5,739	AT&T, Inc.		147,320
	3,231	Atlantic Tele-Network, Inc.		148,109
	4,658	CenturyTel, Inc.		151,198
	11,573	USA Mobility, Inc.*		126,146
				572,773
		Utilities—1.1%
	4,324	Amerigas Partners LP		158,950
	3,721	Suburban Propane Partners LP		160,078
				319,028
		Total Common Stocks and Other Equity Interests(Cost $27,950,030)		29,850,897
		Money Market Fund—0.1%
	37,330	Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $37,330)		37,330
		Total Investments(Cost $27,987,360)—100.1%		29,888,227
		Liabilities in excess of other assets—(0.1%)		(31,822	)
		Net Assets—100.0%	$	29,856,405

*  Non-income producing security.

See Notes to Financial Statements.

7

Portfolio Composition

PowerShares Dynamic Market Portfolio

Sector Breakdown (% of the Fund's Net Assets) as of October 31, 2009

Information Technology	17.9
Financials	14.3
Health Care	12.7
Energy	11.2
Consumer Staples	11.0
Consumer Discretionary	11.0
Industrials	10.3
Utilities	4.6
Materials	4.2
Telecommunication Services	2.8
Money Market Fund	0.0
Other	(0.0	)

Schedule of Investments

PowerShares Dynamic Market Portfolio

October 31, 2009 (Unaudited)

Number of Shares			Value
		Common Stocks—100.0%
		Consumer Discretionary—11.0%
	33,760	Aaron's, Inc.	$	845,688
	48,171	Cheesecake Factory, Inc. (The)*		875,749
	29,314	Family Dollar Stores, Inc.		829,586
	678,692	Ford Motor Co.*		4,750,844
	263,236	Gap, Inc. (The)		5,617,456
	20,282	Jos. A. Bank Clothiers, Inc.*		831,156
	56,141	Maidenform Brands, Inc.*		788,220
	156,091	McGraw-Hill Cos., Inc. (The)		4,492,299
	20,338	Netflix, Inc.*		1,087,066
	142,212	Omnicom Group, Inc.		4,875,027
	37,852	Papa John's International, Inc.*		851,670
	44,237	Rent-A-Center, Inc.*		812,191
	24,034	Tupperware Brands Corp.		1,082,011
	21,651	UniFirst Corp.		910,858
				28,649,821
		Consumer Staples—11.0%
	70,070	Coca-Cola Enterprises, Inc.		1,336,235
	137,809	Del Monte Foods Co.		1,488,337
	37,149	Hershey Co. (The)		1,403,861
	32,757	J & J Snack Foods Corp.		1,283,092
	169,491	Kimberly-Clark Corp.		10,366,070
	357,405	Kraft Foods, Inc., Class A		9,835,786
	83,256	Nu Skin Enterprises, Inc., Class A		1,894,906
	921,643	Rite Aid Corp.*		1,188,919
				28,797,206
		Energy—11.2%
	191,691	Cal Dive International, Inc.*		1,472,187
	215,386	CVR Energy, Inc.*		2,265,861
	43,323	FMC Technologies, Inc.*		2,278,790

Number of Shares			Value
		Common Stocks (Continued)
	39,004	Oceaneering International, Inc.*	$	1,993,104
	171,552	Schlumberger Ltd.		10,670,535
	252,313	XTO Energy, Inc.		10,486,128
				29,166,605
		Financials—14.3%
	84,728	ACE Ltd.		4,351,630
	163,967	Advance America Cash Advance Centers, Inc.		809,997
	36,818	American Financial Group, Inc.		905,723
	30,432	American Physicians Capital, Inc.		860,617
	26,767	Argo Group International Holdings Ltd. (Bermuda)*		909,007
	47,718	Brown & Brown, Inc.		876,580
	90,443	Chubb Corp. (The)		4,388,294
	57,185	CNA Surety Corp.*		826,895
	25,382	Commerce Bancshares, Inc.		973,654
	311,882	Discover Financial Services		4,410,012
	26,991	Goldman Sachs Group, Inc. (The)		4,593,058
	39,346	Investment Technology Group, Inc.*		848,693
	44,337	PHH Corp.*		716,486
	266,711	Progressive Corp. (The)*		4,267,376
	50,802	SEI Investments Co.		887,511
	24,823	StanCorp Financial Group, Inc.		911,252
	239,897	TD Ameritrade Holding Corp.*		4,630,012
	19,548	Transatlantic Holdings, Inc.		987,174
				37,153,971
		Health Care—12.7%
	273,637	AmerisourceBergen Corp.		6,061,060
	43,632	AmSurg Corp.*		919,326

See Notes to Financial Statements.

8

Schedule of Investments (Continued)

PowerShares Dynamic Market Portfolio

October 31, 2009 (Unaudited)

Number of Shares			Value
		Common Stocks (Continued)
	20,248	Emergency Medical Services Corp., Class A*	$	972,309
	129,521	Health Management Associates, Inc., Class A*		790,078
	146,676	Hospira, Inc.*		6,547,617
	27,182	Kinetic Concepts, Inc.*		902,171
	103,185	McKesson Corp.		6,060,055
	10,208	Mettler-Toledo International, Inc.*		995,280
	13,534	Millipore Corp.*		906,913
	68,647	Odyssey HealthCare, Inc.*		956,939
	42,868	RehabCare Group, Inc.*		803,775
	33,835	Sirona Dental Systems, Inc.*		910,500
	205,858	UnitedHealth Group, Inc.		5,342,015
	15,340	Universal Health Services, Inc., Class B		853,671
				33,021,709
		Industrials—10.3%
	88,986	3M Co.		6,546,700
	26,592	A.O. Smith Corp.		1,053,841
	30,970	Carlisle Cos., Inc.		961,309
	52,130	Chart Industries, Inc.*		1,030,610
	28,819	Cubic Corp.		1,000,307
	60,255	Deluxe Corp.		857,428
	59,453	DynCorp International, Inc., Class A*		1,010,701
	125,931	ITT Corp.		6,384,702
	85,387	Lockheed Martin Corp.		5,873,772
	30,206	Michael Baker Corp.*		1,078,354
	27,024	Powell Industries, Inc.*		993,943
				26,791,667
		Information Technology—17.9%
	294,439	3Com Corp.*		1,513,416
	109,447	AVX Corp.		1,238,940
	62,746	Broadridge Financial Solutions, Inc.		1,305,744
	83,285	CSG Systems International, Inc.*		1,360,877
	134,837	Fiserv, Inc.*		6,184,973
	87,456	i2 Technologies, Inc.*		1,376,557
	71,295	Informatica Corp.*		1,513,593
	56,126	International Business Machines Corp.		6,769,357
	299,426	Oracle Corp.		6,317,889
	42,602	SYNNEX Corp.*		1,096,150
	32,009	Syntel, Inc.		1,146,883
	74,671	TeleTech Holdings, Inc.*		1,335,864
	245,297	Teradata Corp.*		6,838,880
	73,069	Volterra Semiconductor Corp.*		1,012,006
	193,168	Western Digital Corp.*		6,505,898
	40,955	Wright Express Corp.*		1,143,054
				46,660,081
		Materials—4.2%
	156,498	Ball Corp.		7,720,046
	40,981	Bemis Co., Inc.		1,058,539

Number of Shares			Value
		Common Stocks (Continued)
	69,301	Bway Holding Co.*	$	1,231,479
	43,466	Pactiv Corp.*		1,003,630
				11,013,694
		Telecommunication Services—2.8%
	103,354	AT&T, Inc.		2,653,097
	16,559	Atlantic Tele-Network, Inc.		759,065
	23,888	CenturyTel, Inc.		775,404
	59,354	USA Mobility, Inc.*		646,959
	87,326	Verizon Communications, Inc.		2,583,976
				7,418,501
		Utilities—4.6%
	43,424	Energen Corp.		1,905,445
	273,369	Public Service Enterprise Group, Inc.		8,146,396
	46,287	Suburban Propane Partners LP		1,991,267
				12,043,108
		Total Common Stocks (Cost $250,097,911)		260,716,363
		Money Market Fund—0.0%
	85,364	Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $85,364)		85,364
		Total Investments(Cost $250,183,275)—100.0%		260,801,727
		Liabilities in excess of other assets—(0.0%)		(94,930	)
		Net Assets—100.0%	$	260,706,797

*  Non-income producing security.

See Notes to Financial Statements.

9

Portfolio Composition

PowerShares Dynamic OTC Portfolio

Sector Breakdown (% of the Fund's Net Assets) as of October 31, 2009

Information Technology	54.5
Consumer Discretionary	16.5
Health Care	11.6
Financials	7.8
Industrials	5.2
Consumer Staples	2.1
Telecommunication Services	1.1
Materials	0.7
Energy	0.5
Money Market Fund	0.1
Other	(0.1	)

Schedule of Investments

PowerShares Dynamic OTC Portfolio

October 31, 2009 (Unaudited)

Number of Shares			Value
		Common Stocks—100.0%
		Consumer Discretionary—16.5%
	7,489	Ambassadors Group, Inc.	$	95,185
	17,248	Apollo Group, Inc., Class A*		984,861
	31,375	Bed Bath & Beyond, Inc.*		1,104,714
	15,955	Big 5 Sporting Goods Corp.		235,336
	13,374	Cheesecake Factory, Inc. (The)*		243,139
	78,417	Comcast Corp., Class A		1,099,406
	17,485	Dorman Products, Inc.*		255,631
	15,051	Dress Barn, Inc.*		271,671
	5,631	Jos. A. Bank Clothiers, Inc.*		230,758
	5,646	Netflix, Inc.*		301,779
	10,509	Papa John's International, Inc.*		236,453
	12,283	Rent-A-Center, Inc.*		225,516
	24,719	Ross Stores, Inc.		1,087,883
				6,372,332
		Consumer Staples—2.1%
	16,347	Hansen Natural Corp.*		590,944
	5,205	J & J Snack Foods Corp.		203,880
				794,824
		Energy—0.5%
	6,052	Global Industries Ltd.*		44,119
	6,406	Linn Energy LLC		156,947
				201,066
		Financials—7.8%
	3,025	American Physicians Capital, Inc.		85,547
	5,519	AMERISAFE, Inc.*		102,322
	2,661	Argo Group International Holdings Ltd. (Bermuda)*		90,368
	14,719	Commerce Bancshares, Inc.		564,621

Number of Shares			Value
		Common Stocks (Continued)
	5,496	Dollar Financial Corp.*	$	103,160
	5,124	eHealth, Inc.*		72,914
	6,340	Encore Capital Group, Inc.*		94,910
	4,968	First Cash Financial Services, Inc.*		85,350
	13,279	GFI Group, Inc.		68,387
	28,025	Knight Capital Group, Inc., Class A*		472,221
	10,090	Provident New York Bancorp		86,068
	29,462	SEI Investments Co.		514,701
	29,812	TD Ameritrade Holding Corp.*		575,372
	13,113	TradeStation Group, Inc.*		101,232
				3,017,173
		Health Care—11.6%
	5,316	Air Methods Corp.*		162,351
	8,893	AmSurg Corp.*		187,376
	1,335	Atrion Corp.		158,077
	18,631	Bruker Corp.*		201,960
	6,115	Corvel Corp.*		174,278
	18,392	Henry Schein, Inc.*		971,649
	36,854	Lincare Holdings, Inc.*		1,157,584
	4,815	MWI Veterinary Supply, Inc.*		170,451
	13,991	Odyssey HealthCare, Inc.*		195,035
	6,896	Sirona Dental Systems, Inc.*		185,571
	38,977	VCA Antech, Inc.*		928,432
				4,492,764
		Industrials—5.2%
	6,945	Advisory Board Co. (The)*		171,125
	21,814	APAC Customer Services, Inc.*		140,700
	6,069	Chart Industries, Inc.*		119,984
	19,597	Copart, Inc.*		630,435
	4,715	Exponent, Inc.*		122,637

See Notes to Financial Statements.

10

Schedule of Investments (Continued)

PowerShares Dynamic OTC Portfolio

October 31, 2009 (Unaudited)

Number of Shares			Value
		Common Stocks (Continued)
	3,146	Powell Industries, Inc.*	$	115,710
	15,111	United Stationers, Inc.*		712,333
				2,012,924
		Information Technology—54.5%
	41,929	3Com Corp.*		215,515
	22,230	Acme Packet, Inc.*		217,632
	31,681	Actuate Corp.*		158,722
	8,101	ADTRAN, Inc.		186,647
	7,156	Apple, Inc.*		1,348,906
	15,390	Bottomline Technologies, Inc.*		225,925
	53,845	CA, Inc.		1,126,437
	34,502	Cognizant Technology Solutions Corp., Class A*		1,333,502
	25,146	Compuware Corp.*		177,531
	11,859	CSG Systems International, Inc.*		193,776
	5,197	Digital River, Inc.*		118,648
	54,180	eBay, Inc.*		1,206,589
	34,639	F5 Networks, Inc.*		1,554,945
	24,728	Fiserv, Inc.*		1,134,273
	2,618	Google, Inc., Class A*		1,403,562
	12,453	i2 Technologies, Inc.*		196,010
	10,152	Informatica Corp.*		215,527
	10,645	Interactive Intelligence, Inc.*		178,517
	8,313	j2 Global Communications, Inc.*		170,001
	9,391	JDA Software Group, Inc.*		186,317
	73,923	Lattice Semiconductor Corp.*		141,193
	3,450	ManTech International Corp., Class A*		151,317
	18,099	Mercury Computer Systems, Inc.*		193,659
	42,180	MICROS Systems, Inc.*		1,135,486
	25,998	ModusLink Global Solutions, Inc.*		213,704
	6,604	Multi-Fineline Electronix, Inc.*		179,959
	24,187	NIC, Inc.		211,878
	42,025	Novell, Inc.*		171,882
	3,394	NVE Corp.*		126,936
	54,914	Oracle Corp.		1,158,685
	7,096	Plexus Corp.*		179,529
	8,130	Progress Software Corp.*		187,803
	11,162	Quest Software, Inc.*		187,187
	16,902	Radiant Systems, Inc.*		166,316
	10,075	Semtech Corp.*		155,860
	24,092	SonicWALL, Inc.*		191,291
	15,546	SuccessFactors, Inc.*		237,698
	56,653	Synopsys, Inc.*		1,246,366
	4,558	Syntel, Inc.		163,313
	4,719	Tech Data Corp.*		181,351
	10,633	TeleTech Holdings, Inc.*		190,224
	189,844	Tellabs, Inc.*		1,142,861
	20,543	TIBCO Software, Inc.*		179,751
	18,135	Virtusa Corp.*		162,852
	10,405	Volterra Semiconductor Corp.*		144,109
	53,726	Xilinx, Inc.		1,168,541
				21,118,733

Number of Shares			Value
		Common Stocks (Continued)
		Materials—0.7%
	4,838	Silgan Holdings, Inc.	$	260,042
		Telecommunication Services—1.1%
	2,622	Atlantic Tele-Network, Inc.		120,192
	12,016	NII Holdings, Inc.*		323,591
				443,783
		Total Common Stocks(Cost $35,629,441)		38,713,641
		Money Market Fund—0.1%
	50,522	Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $50,522)		50,522
		Total Investments(Cost $35,679,963)—100.1%		38,764,163
		Liabilities in excess of other assets—(0.1%)		(48,861	)
		Net Assets—100.0%	$	38,715,302

*  Non-income producing security.

See Notes to Financial Statements.

11

Portfolio Composition

PowerShares FTSE RAFI US 1000 Portfolio

Sector Breakdown (% of the Fund's Net Assets) as of October 31, 2009

Financials	34.2
Consumer Discretionary	14.1
Industrials	11.3
Information Technology	9.3
Energy	7.5
Consumer Staples	6.7
Health Care	6.4
Materials	4.7
Utilities	3.3
Telecommunication Services	2.4
Money Market Fund	0.1
Other	0.0

Schedule of Investments

PowerShares FTSE RAFI US 1000 Portfolio

October 31, 2009 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—99.9%
		Consumer Discretionary—14.1%
	3,971	Abercrombie & Fitch Co., Class A	$	130,328
	989	Advance Auto Parts, Inc.		36,850
	2,473	Amazon.com, Inc.*		293,817
	47,429	American Axle & Manufacturing Holdings, Inc.		284,100
	5,443	American Eagle Outfitters, Inc.		95,198
	7,916	AnnTaylor Stores Corp.*		102,671
	921	Apollo Group, Inc., Class A*		52,589
	137,318	ArvinMeritor, Inc.		1,072,454
	21,825	Asbury Automotive Group, Inc.*		212,576
	8,707	Autoliv, Inc.		292,381
	17,430	AutoNation, Inc.*		300,493
	575	AutoZone, Inc.*		77,803
	3,542	Barnes & Noble, Inc.		58,833
	112,343	Beazer Homes USA, Inc.*		493,186
	7,438	Bed Bath & Beyond, Inc.*		261,892
	70,724	Belo Corp., Class A		332,403
	15,383	Best Buy Co., Inc.		587,323
	4,718	Big Lots, Inc.*		118,186
	5,067	Black & Decker Corp. (The)		239,264
	114,918	Blockbuster, Inc., Class A*		95,382
	93,759	Borders Group, Inc.*		181,892
	5,393	BorgWarner, Inc.		163,516
	10,983	Boyd Gaming Corp.*		80,835
	6,543	Brinker International, Inc.		82,704
	27,512	Brunswick Corp.		260,814
	2,580	Burger King Holdings, Inc.		44,273
	3,780	Cabela's, Inc.*		47,515
	5,422	Cablevision Systems Corp., Class A		124,489

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	2,122	Career Education Corp.*	$	44,222
	11,158	CarMax, Inc.*		219,478
	26,400	Carnival Corp.*		768,768
	159,610	CBS Corp., Class B		1,878,610
	6,714	Central European Media Enterprises Ltd., Class A (Bermuda)*		168,790
	75,470	Charming Shoppes, Inc.*		341,879
	10,232	Chico's FAS, Inc.*		122,272
	1,817	Cinemark Holdings, Inc.		21,059
	32,220	Clear Channel Outdoor Holdings, Inc., Class A*		219,740
	6,991	Coach, Inc.		230,493
	5,198	Collective Brands, Inc.*		96,423
	111,628	Comcast Corp., Class A		1,603,895
	9,675	Cooper Tire & Rubber Co.		147,641
	2,691	Core-Mark Holding Co., Inc.*		73,653
	25,965	D.R. Horton, Inc.		284,576
	3,966	Darden Restaurants, Inc.		120,209
	3,593	Dick's Sporting Goods, Inc.*		81,525
	31,838	Dillard's, Inc., Class A		433,634
	12,524	DIRECTV Group, Inc. (The)*		329,381
	2,867	Discovery Communications, Inc., Class A*		78,843
	3,008	Discovery Communications, Inc., Class C*		72,252
	18,875	DISH Network Corp., Class A*		328,425
	2,109	Dollar Tree, Inc.*		95,179
	8,111	Domino's Pizza, Inc.*		59,535
	61,138	E.W. Scripps Co., Class A*		388,838
	62,236	Eastman Kodak Co.		233,385
	154,059	Emmis Communications Corp., Class A*		158,681
	15,366	Exide Technologies*		94,040

See Notes to Financial Statements.

12

Schedule of Investments (Continued)

PowerShares FTSE RAFI US 1000 Portfolio

October 31, 2009 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	18,324	Expedia, Inc.*	$	415,405
	3,823	Family Dollar Stores, Inc.		108,191
	6,687	Federal Mogul Corp.*		74,560
	12,877	Foot Locker, Inc.		134,951
	1,345,494	Ford Motor Co.*		9,418,458
	9,771	Fortune Brands, Inc.		380,580
	30,781	Furniture Brands International, Inc.		130,819
	3,442	GameStop Corp., Class A*		83,606
	105,668	Gannett Co., Inc.		1,037,660
	21,583	Gap, Inc. (The)		460,581
	3,720	Garmin Ltd.		112,567
	6,982	Genuine Parts Co.		244,300
	71,746	Goodyear Tire & Rubber Co. (The)*		924,088
	5,737	Group 1 Automotive, Inc.		145,835
	6,662	H&R Block, Inc.		122,181
	11,722	Hanesbrands, Inc.*		253,430
	19,086	Harley-Davidson, Inc.		475,623
	7,051	Harman International Industries, Inc.		265,188
	3,564	Hasbro, Inc.		97,190
	70,914	Home Depot, Inc. (The)		1,779,232
	71,212	Hovnanian Enterprises, Inc., Class A*		278,439
	22,049	HSN, Inc.*		329,412
	864	Interactive Data Corp.		22,723
	12,661	International Game Technology		225,872
	32,535	Interpublic Group of Cos., Inc.*		195,861
	23,050	J.C. Penney Co., Inc.		763,647
	2,669	Jack in the Box, Inc.*		50,070
	7,944	Jarden Corp.*		217,586
	45,222	Johnson Controls, Inc.		1,081,710
	35,532	Jones Apparel Group, Inc.		635,667
	10,823	KB Home		153,470
	9,928	Kohl's Corp.*		568,080
	16,181	Lamar Advertising Co., Class A*		393,198
	22,119	Las Vegas Sands Corp.*		333,776
	10,164	Leggett & Platt, Inc.		196,470
	25,699	Lennar Corp., Class A		323,807
	11,482	Liberty Global, Inc., Series C*		236,300
	11,045	Liberty Global, Inc., Class A*		226,754
	41,596	Liberty Media Corp. - Capital, Series A*		860,621
	98,395	Liberty Media Corp. - Interactive, Class A*		1,115,799
	29,371	Limited Brands, Inc.		516,930
	17,345	Live Nation, Inc.*		115,518
	27,437	Liz Claiborne, Inc.		157,488
	51,277	Lowe's Cos., Inc.		1,003,491
	57,697	Macy's, Inc.		1,013,736
	11,799	Marriott International, Inc., Class A		295,683
	13,628	Mattel, Inc.		257,978
	86,811	McClatchy Co. (The), Class A		244,807
	13,530	McDonald's Corp.		792,993
	10,026	McGraw-Hill Cos., Inc. (The)		288,548
	2,366	MDC Holdings, Inc.		77,179

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	2,516	Meredith Corp.	$	68,083
	59,019	MGM MIRAGE*		547,106
	8,832	Mohawk Industries, Inc.*		378,275
	17,441	New York Times Co. (The), Class A		139,005
	23,387	Newell Rubbermaid, Inc.		339,345
	110,569	News Corp., Class A		1,273,755
	27,342	News Corp., Class B		371,851
	7,058	NIKE, Inc., Class B		438,866
	10,277	Nordstrom, Inc.		326,603
	380	NVR, Inc.*		251,663
	233,846	Office Depot, Inc.*		1,414,768
	35,051	OfficeMax, Inc.*		400,633
	10,513	Omnicom Group, Inc.		360,386
	2,327	O'Reilly Automotive, Inc.*		86,751
	3,289	Penn National Gaming, Inc.*		82,653
	10,432	Penske Automotive Group, Inc.		163,365
	3,354	PetSmart, Inc.		78,920
	2,664	Polo Ralph Lauren Corp.		198,255
	40,569	Pulte Homes, Inc.		365,527
	35,883	Quiksilver, Inc.*		71,407
	10,589	RadioShack Corp.		178,848
	20,365	RCN Corp.*		169,844
	15,243	Regal Entertainment Group, Class A		192,214
	4,867	Regis Corp.		79,040
	5,381	Rent-A-Center, Inc.*		98,795
	2,649	Ross Stores, Inc.		116,583
	15,201	Royal Caribbean Cruises Ltd.		307,516
	3,909	Ryland Group, Inc.		72,512
	58,265	Saks, Inc.*		326,867
	3,390	Scholastic Corp.		84,309
	3,060	Scripps Networks Interactive, Inc., Class A		115,546
	13,284	Sears Holdings Corp.*		901,452
	17,444	Service Corp. International		119,840
	2,638	Sherwin-Williams Co. (The)		150,472
	87,558	Sonic Automotive, Inc., Class A*		782,769
	53,467	Standard Pacific Corp.*		160,401
	19,098	Staples, Inc.		414,427
	21,092	Starbucks Corp.*		400,326
	13,220	Starwood Hotels & Resorts Worldwide, Inc.		384,173
	32,656	Target Corp.		1,581,530
	57,504	Tenneco, Inc.*		783,204
	3,510	Thor Industries, Inc.*		92,032
	12,440	Ticketmaster Entertainment, Inc.*		120,046
	3,931	Tiffany & Co.		154,449
	16,776	Time Warner Cable, Inc.		661,645
	79,602	Time Warner, Inc.		2,397,612
	10,823	TJX Cos., Inc. (The)		404,239
	6,996	Toll Brothers, Inc.*		121,171
	1,541	Tractor Supply Co.*		68,883
	25,696	TravelCenters of America LLC*		145,696
	84,963	TRW Automotive Holdings Corp.*		1,329,671

See Notes to Financial Statements.

13

Schedule of Investments (Continued)

PowerShares FTSE RAFI US 1000 Portfolio

October 31, 2009 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	3,383	VF Corp.	$	240,328
	24,835	Viacom, Inc., Class B*		685,198
	38,953	Virgin Media, Inc.		544,173
	4,013	WABCO Holdings, Inc.		95,188
	64,941	Walt Disney Co. (The)		1,777,435
	17,335	Warner Music Group Corp.*		99,850
	100	Washington Post Co. (The), Class B		43,200
	11,634	Whirlpool Corp.		832,878
	8,469	Williams-Sonoma, Inc.		159,048
	30,232	Wyndham Worldwide Corp.		515,456
	1,901	Wynn Resorts Ltd.*		103,072
	7,759	Yum! Brands, Inc.		255,659
	34,836	Zale Corp.*		164,774
				70,246,839
		Consumer Staples—6.7%
	1,925	Alberto-Culver Co.		51,629
	152,913	Altria Group, Inc.		2,769,254
	25,565	Archer-Daniels-Midland Co.		770,018
	10,833	Avon Products, Inc.		347,198
	14,495	Bare Escentuals, Inc.*		183,072
	3,645	BJ's Wholesale Club, Inc.*		127,684
	2,257	Brown-Forman Corp., Class B		110,164
	8,236	Bunge Ltd.		469,946
	5,685	Campbell Soup Co.		180,499
	2,301	Casey's General Stores, Inc.		72,551
	10,347	Chiquita Brands International, Inc.		167,518
	878	Church & Dwight Co., Inc.		49,941
	2,874	Clorox Co. (The)		170,227
	34,054	Coca-Cola Co. (The)		1,815,419
	23,056	Coca-Cola Enterprises, Inc.		439,678
	5,944	Colgate-Palmolive Co.		467,377
	21,772	ConAgra Foods, Inc.		457,212
	10,795	Constellation Brands, Inc., Class A*		170,777
	3,065	Corn Products International, Inc.		86,372
	12,123	Cosan Ltd., Class A (Brazil)*		80,739
	17,105	Costco Wholesale Corp.		972,419
	34,889	CVS Caremark Corp.		1,231,582
	32,590	Dean Foods Co.*		594,116
	10,051	Del Monte Foods Co.		108,551
	14,794	Dr Pepper Snapple Group, Inc.*		403,285
	2,555	Energizer Holdings, Inc.*		155,523
	6,003	Estee Lauder Cos., Inc. (The), Class A		255,128
	2,344	Fresh Del Monte Produce, Inc.*		50,888
	7,322	General Mills, Inc.		482,666
	18,912	Great Atlantic & Pacific Tea Co., Inc. (The)*		187,418
	8,063	H.J. Heinz Co.		324,455
	4,122	Hershey Co. (The)		155,770
	2,756	Hormel Foods Corp.		100,484
	1,844	J.M. Smucker Co. (The)		97,234
	5,945	Kellogg Co.		306,405

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	10,348	Kimberly-Clark Corp.	$	632,884
	53,035	Kraft Foods, Inc., Class A		1,459,523
	35,746	Kroger Co. (The)		826,805
	5,311	Lorillard, Inc.		412,771
	2,533	McCormick & Co., Inc.		88,680
	5,299	Molson Coors Brewing Co., Class B		259,492
	1,265	Nash Finch Co.		36,660
	2,736	NBTY, Inc.*		99,618
	4,122	Pantry, Inc. (The)*		58,161
	8,773	Pepsi Bottling Group, Inc. (The)		328,461
	3,983	PepsiAmericas, Inc.		116,463
	24,322	PepsiCo, Inc.		1,472,697
	29,531	Philip Morris International, Inc.		1,398,588
	58,761	Procter & Gamble Co. (The)		3,408,138
	1,054	Ralcorp Holdings, Inc.*		56,600
	8,357	Reynolds American, Inc.		405,147
	1,857	Ruddick Corp.		49,619
	26,810	Safeway, Inc.		598,667
	42,830	Sara Lee Corp.		483,551
	25,507	Smithfield Foods, Inc.*		340,263
	24,074	SUPERVALU, Inc.		382,054
	21,946	Sysco Corp.		580,472
	38,622	Tyson Foods, Inc., Class A		483,547
	1,761	Universal Corp.		73,240
	31,133	Walgreen Co.		1,177,761
	73,231	Wal-Mart Stores, Inc.		3,638,116
	9,357	Whole Foods Market, Inc.*		299,985
	10,382	Winn-Dixie Stores, Inc.*		115,136
				33,696,298
		Energy—7.5%
	1,483	Alon USA Energy, Inc.		12,457
	5,288	Alpha Natural Resources, Inc.*		179,633
	15,821	Anadarko Petroleum Corp.		963,974
	8,608	Apache Corp.		810,185
	4,565	Arch Coal, Inc.		98,878
	9,680	Baker Hughes, Inc.		407,238
	13,780	BJ Services Co.		264,576
	4,359	Cameron International Corp.*		161,152
	21,688	Chesapeake Energy Corp.		531,356
	70,801	Chevron Corp.		5,419,109
	4,274	Cimarex Energy Co.		167,370
	453	CNX Gas Corp.*		12,621
	9,046	Complete Production Services, Inc.*		86,208
	82,091	ConocoPhillips		4,119,326
	3,175	CONSOL Energy, Inc.		135,922
	820	Continental Resources, Inc.*		30,512
	4,034	CVR Energy, Inc.*		42,438
	2,030	Delek US Holdings, Inc.		13,702
	4,525	Denbury Resources, Inc.*		66,065
	15,482	Devon Energy Corp.		1,001,840

See Notes to Financial Statements.

14

Schedule of Investments (Continued)

PowerShares FTSE RAFI US 1000 Portfolio

October 31, 2009 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	1,096	Diamond Offshore Drilling, Inc.	$	104,394
	32,414	El Paso Corp.		317,981
	3,961	ENSCO International, Inc.		181,374
	4,354	EOG Resources, Inc.		355,548
	6,156	Exterran Holdings, Inc.*		125,767
	109,551	Exxon Mobil Corp.		7,851,520
	2,656	FMC Technologies, Inc.*		139,706
	7,335	Forest Oil Corp.*		143,766
	3,976	Frontier Oil Corp.		55,107
	8,808	General Maritime Corp.		60,687
	27,438	Halliburton Co.		801,464
	22,323	Helix Energy Solutions Group, Inc.*		306,495
	2,861	Helmerich & Payne, Inc.		108,775
	32,480	Hercules Offshore, Inc.*		166,622
	8,352	Hess Corp.		457,188
	1,598	Holly Corp.		46,358
	19,851	Key Energy Services, Inc.*		145,111
	3,620	Linn Energy LLC		88,690
	41,281	Marathon Oil Corp.		1,319,754
	6,738	Mariner Energy, Inc.*		85,842
	3,837	Massey Energy Co.		111,618
	5,651	Murphy Oil Corp.		345,502
	18,603	Nabors Industries Ltd. (Bermuda)*		387,500
	8,195	National Oilwell Varco, Inc.*		335,913
	7,439	Newfield Exploration Co.*		305,148
	6,272	Noble Corp. (Switzerland)		255,521
	3,217	Noble Energy, Inc.		211,132
	11,606	Occidental Petroleum Corp.		880,663
	1,465	Oil States International, Inc.*		50,455
	2,161	Overseas Shipholding Group, Inc.		84,819
	8,986	Patterson-UTI Energy, Inc.		140,002
	5,215	Peabody Energy Corp.		206,462
	3,456	Petrohawk Energy Corp.*		81,285
	20,249	Pioneer Drilling Co.*		135,466
	6,515	Pioneer Natural Resources Co.		267,832
	6,594	Plains Exploration & Production Co.*		174,741
	6,550	Pride International, Inc.*		193,618
	1,195	Range Resources Corp.		59,810
	5,659	Rowan Cos., Inc.		131,572
	5,516	SandRidge Energy, Inc.*		56,429
	19,399	Schlumberger Ltd.		1,206,618
	924	SEACOR Holdings, Inc.*		75,093
	450	Seahawk Drilling, Inc.*		12,150
	5,346	Ship Finance International Ltd. (Bermuda)		60,784
	8,317	Smith International, Inc.		230,630
	5,135	Southern Union Co.		100,492
	2,020	Southwestern Energy Co.*		88,032
	27,025	Spectra Energy Corp.		516,718
	14,823	Stone Energy Corp.*		227,237
	10,804	Sunoco, Inc.		332,763
	2,710	Superior Energy Services, Inc.*		58,563

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	4,610	Teekay Corp. (Bahamas)	$	95,657
	14,644	Tesoro Corp.		207,066
	1,590	Tidewater, Inc.		66,255
	2,757	Unit Corp.*		107,744
	9,063	USEC, Inc.*		34,983
	55,547	Valero Energy Corp.		1,005,401
	2,568	W&T Offshore, Inc.		29,917
	15,625	Weatherford International Ltd. (Switzerland)*		273,906
	3,967	Western Refining, Inc.*		22,255
	2,175	Whiting Petroleum Corp.*		122,670
	26,769	Williams Cos., Inc. (The)		504,596
	2,654	World Fuel Services Corp.		134,956
	8,146	XTO Energy, Inc.		338,548
				37,655,233
		Financials—34.2%
	1,493	Affiliated Managers Group, Inc.*		94,791
	22,021	Aflac, Inc.		913,651
	1,244	Alexandria Real Estate Equities, Inc. REIT		67,388
	205	Alleghany Corp.*		51,250
	122,048	Allied Capital Corp.		380,790
	2,530	Allied World Assurance Co. Holdings Ltd. (Bermuda)		113,243
	46,518	Allstate Corp. (The)		1,375,537
	9,439	AMB Property Corp. REIT*		207,469
	186,050	American Capital Ltd.		498,614
	75,742	American Express Co.		2,638,851
	3,765	American Financial Group, Inc.		92,619
	87,585	American International Group, Inc.*		2,944,608
	863	American National Insurance Co.		72,052
	15,209	AmeriCredit Corp.*		268,439
	5,563	Ameriprise Financial, Inc.		192,869
	9,673	Annaly Capital Management, Inc. REIT		163,570
	6,367	Aon Corp.		245,193
	20,806	Apartment Investment & Management Co., Class A REIT		256,954
	16,652	Apollo Investment Corp.		149,868
	1,742	Arch Capital Group Ltd.*		117,359
	3,529	Arthur J. Gallagher & Co.		78,732
	3,267	Aspen Insurance Holdings Ltd. (Bermuda)		84,289
	4,334	Associated Banc-Corp.		55,519
	7,879	Assurant, Inc.		235,818
	8,270	Astoria Financial Corp.		82,535
	2,600	AvalonBay Communities, Inc. REIT		178,828
	5,866	Axis Capital Holdings Ltd. (Bermuda)		169,469
	8,725	Baldwin & Lyons, Inc., Class B		199,017
	2,599	BancorpSouth, Inc.		58,685
	2,006,925	Bank of America Corp.		29,260,967
	1,466	Bank of Hawaii Corp.		65,090
	34,029	Bank of New York Mellon Corp. (The)		907,213
	46,980	BB&T Corp.		1,123,292

See Notes to Financial Statements.

15

Schedule of Investments (Continued)

PowerShares FTSE RAFI US 1000 Portfolio

October 31, 2009 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	1,137	Berkshire Hathaway, Inc., Class B*	$	3,732,771
	644	BOK Financial Corp.		27,673
	6,959	Boston Properties, Inc. REIT		422,898
	17,880	Brandywine Realty Trust REIT		170,933
	2,126	BRE Properties, Inc. REIT		57,891
	3,483	Camden Property Trust REIT		126,259
	63,776	Capital One Financial Corp.		2,334,202
	60,834	CapitalSource, Inc.		216,569
	38,122	CB Richard Ellis Group, Inc., Class A*		394,563
	39,694	CBL & Associates Properties, Inc. REIT		323,903
	16,559	Charles Schwab Corp. (The)		287,133
	8,131	Chubb Corp. (The)		394,516
	9,568	Cincinnati Financial Corp.		242,644
	79,631	CIT Group, Inc.		57,334
	9,326,893	Citigroup, Inc.		38,146,992
	2,127	City National Corp.		80,124
	1,139	CME Group, Inc.		344,673
	2,901	CNA Financial Corp.		63,155
	18,426	Colonial Properties Trust REIT		194,026
	15,041	Comerica, Inc.		417,388
	1,820	Commerce Bancshares, Inc.		69,815
	13,263	CompuCredit Holdings Corp.*		43,503
	131,005	Conseco, Inc.*		682,536
	6,279	Cousins Properties, Inc. REIT		45,962
	15,794	DCT Industrial Trust, Inc. REIT		71,547
	46,812	Developers Diversified Realty Corp. REIT		402,115
	48,382	Discover Financial Services		684,121
	4,618	Douglas Emmett, Inc. REIT		54,492
	16,951	Duke Realty Corp. REIT		190,529
	232,490	E*TRADE Financial Corp.*		339,435
	3,301	Endurance Specialty Holdings Ltd. (Bermuda)		118,803
	2,203	Equity One, Inc. REIT		32,869
	12,647	Equity Residential REIT		365,245
	745	Erie Indemnity Co., Class A		26,261
	2,233	Everest Re Group Ltd.		195,365
	1,305	Federal Realty Investment Trust REIT		77,034
	2,595	Federated Investors, Inc., Class B		68,119
	18,985	Fidelity National Financial, Inc., Class A		257,626
	309,262	Fifth Third Bancorp		2,764,802
	6,425	First American Corp. (The)		195,256
	11,284	First Horizon National Corp.*		133,490
	21,235	First Industrial Realty Trust, Inc. REIT		92,372
	3,508	FirstMerit Corp.		66,477
	4,417	Franklin Resources, Inc.		462,151
	11,014	Fulton Financial Corp.		90,976
	361,018	Genworth Financial, Inc., Class A*		3,834,011
	21,196	Goldman Sachs Group, Inc. (The)		3,606,923
	1,937	Hanover Insurance Group, Inc. (The)		81,490
	163,634	Hartford Financial Services Group, Inc. (The)		4,012,306
	3,190	HCC Insurance Holdings, Inc.		84,184
	7,329	HCP, Inc. REIT		216,865

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	2,505	Health Care, Inc. REIT	$	111,147
	3,603	Healthcare Realty Trust, Inc. REIT		75,051
	2,558	Highwoods Properties, Inc. REIT		70,396
	9,474	Hospitality Properties Trust REIT		182,943
	57,402	Host Hotels & Resorts, Inc. REIT		580,334
	21,578	HRPT Properties Trust REIT		151,693
	11,461	Hudson City Bancorp, Inc.		150,598
	237,212	Huntington Bancshares, Inc.		903,778
	5,740	Interactive Brokers Group, Inc., Class A*		91,897
	282,415	Invesco Ltd.(-)		5,973,077
	67,341	iStar Financial, Inc. REIT*		140,743
	11,878	Janus Capital Group, Inc.*		155,839
	2,522	Jones Lang LaSalle, Inc.		118,156
	203,665	JPMorgan Chase & Co.		8,507,087
	88,337	KeyCorp		476,136
	21,800	Kimco Realty Corp. REIT		275,552
	56,209	KKR Financial Holdings LLC		257,437
	14,987	Legg Mason, Inc.		436,272
	4,812	Leucadia National Corp.*		108,126
	5,405	Liberty Property Trust REIT		158,745
	46,957	Lincoln National Corp.		1,118,985
	25,761	Loews Corp.		852,689
	6,651	M&T Bank Corp.		418,015
	6,733	Macerich Co. (The) REIT		200,643
	4,723	Mack-Cali Realty Corp. REIT		146,177
	364	Markel Corp.*		117,463
	21,041	Marsh & McLennan Cos., Inc.		493,622
	39,654	Marshall & Ilsley Corp.		210,959
	30,960	MBIA, Inc.*		125,698
	1,531	Mercury General Corp.		55,820
	60,914	MetLife, Inc.		2,072,903
	20,170	MF Global Ltd.*		143,610
	19,872	MGIC Investment Corp.*		85,648
	4,853	Montpelier Re Holdings Ltd. (Bermuda)		78,425
	3,474	Moody's Corp.		82,264
	95,673	Morgan Stanley		3,073,017
	7,372	MSCI, Inc., Class A*		224,109
	3,221	NASDAQ OMX Group, Inc. (The)*		58,171
	2,653	Nationwide Health Properties, Inc. REIT		85,559
	16,141	New York Community Bancorp, Inc.		174,161
	4,178	Northern Trust Corp.		209,945
	11,575	NYSE Euronext		299,214
	17,969	Och-Ziff Capital Management Group LLC, Class A		217,964
	13,730	Old Republic International Corp.		146,636
	7,343	OneBeacon Insurance Group Ltd., Class A		87,529
	2,131	PartnerRe Ltd.		162,979
	6,147	People's United Financial, Inc.		98,536
	13,918	PHH Corp.*		224,915
	134,852	Phoenix Cos., Inc. (The)*		428,829

See Notes to Financial Statements.

16

Schedule of Investments (Continued)

PowerShares FTSE RAFI US 1000 Portfolio

October 31, 2009 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	1,698	Platinum Underwriters Holdings Ltd. (Bermuda)	$	60,737
	4,735	Plum Creek Timber Co., Inc. REIT		148,158
	120,936	PMI Group, Inc. (The)		292,665
	19,853	PNC Financial Services Group, Inc.		971,606
	98,668	Popular, Inc.		213,123
	1,933	Potlatch Corp. REIT		53,950
	41,763	Principal Financial Group, Inc.		1,045,746
	27,727	Progressive Corp. (The)*		443,632
	61,392	ProLogis REIT		695,571
	29,255	Protective Life Corp.		563,159
	56,662	Prudential Financial, Inc.		2,562,822
	2,091	Public Storage REIT		153,898
	26,096	Radian Group, Inc.		151,096
	5,170	Raymond James Financial, Inc.		122,064
	2,400	Rayonier, Inc. REIT		92,592
	2,915	Realty Income Corp. REIT		67,570
	4,398	Redwood Trust, Inc. REIT		61,308
	2,850	Regency Centers Corp. REIT		95,618
	241,444	Regions Financial Corp.		1,168,589
	1,839	Reinsurance Group of America, Inc.		84,778
	1,860	RenaissanceRe Holdings Ltd. (Bermuda)		97,650
	2,671	SEI Investments Co.		46,662
	3,632	Senior Housing Properties Trust REIT		70,025
	9,605	Simon Property Group, Inc. REIT		652,083
	10,015	SL Green Realty Corp. REIT		388,181
	49,253	SLM Corp.*		477,754
	3,463	StanCorp Financial Group, Inc.		127,127
	17,228	State Street Corp.		723,231
	418	Student Loan Corp. (The)		17,577
	75,623	SunTrust Banks, Inc.		1,445,156
	5,395	Susquehanna Bancshares, Inc.		29,726
	42,458	Synovus Financial Corp.		94,257
	5,248	T. Rowe Price Group, Inc.		255,735
	5,748	TCF Financial Corp.		67,999
	27,551	TD Ameritrade Holding Corp.*		531,734
	5,973	Torchmark Corp.		242,504
	3,198	Transatlantic Holdings, Inc.		161,499
	27,858	Travelers Cos., Inc. (The)		1,387,050
	96,668	U.S. Bancorp		2,244,631
	8,651	UDR, Inc. REIT		124,401
	7,942	Unitrin, Inc.		155,663
	24,067	Unum Group		480,137
	3,544	Validus Holdings Ltd.		89,663
	5,003	Valley National Bancorp		66,440
	3,637	Ventas, Inc. REIT		145,953
	8,098	Vornado Realty Trust REIT		482,317
	6,133	W.R. Berkley Corp.		151,608
	4,289	Washington Federal, Inc.		73,556
	19,385	Webster Financial Corp.		219,244
	6,780	Weingarten Realty Investors REIT		125,430

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	251,928	Wells Fargo & Co.	$	6,933,059
	45	Wesco Financial Corp.		14,760
	567	White Mountains Insurance Group Ltd.*		175,435
	4,158	Willis Group Holdings Ltd.		112,266
	6,291	Wilmington Trust Corp.		75,807
	92,433	XL Capital Ltd., Class A		1,516,826
	20,174	Zions Bancorp		285,664
				170,703,880
		Health Care—6.4%
	19,018	Abbott Laboratories		961,740
	14,910	Aetna, Inc.		388,107
	4,095	Alcon, Inc. (Switzerland)		584,725
	2,705	Allergan, Inc.		152,156
	2,195	AMERIGROUP Corp.*		48,400
	32,683	AmerisourceBergen Corp.		723,928
	16,394	Amgen, Inc.*		880,850
	7,196	Baxter International, Inc.		389,016
	1,591	Beckman Coulter, Inc.		102,349
	3,632	Becton, Dickinson and Co.		248,284
	3,392	Biogen Idec, Inc.*		142,905
	533	Bio-Rad Laboratories, Inc., Class A*		47,645
	60,722	Boston Scientific Corp.*		493,063
	47,860	Bristol-Myers Squibb Co.		1,043,348
	9,158	Brookdale Senior Living, Inc.*		154,221
	632	C.R. Bard, Inc.		47,444
	26,618	Cardinal Health, Inc.		754,354
	13,307	CareFusion Corp.*		297,678
	916	Cephalon, Inc.*		49,995
	1,297	Cerner Corp.*		98,624
	2,234	Charles River Laboratories International, Inc.*		81,586
	18,872	CIGNA Corp.		525,396
	6,563	Community Health Systems, Inc.*		205,291
	1,427	Covance, Inc.*		73,747
	15,048	Coventry Health Care, Inc.*		298,402
	10,283	Covidien PLC (Ireland)		433,120
	2,348	DaVita, Inc.*		124,514
	2,387	DENTSPLY International, Inc.		78,676
	27,267	Eli Lilly & Co.		927,351
	2,403	Endo Pharmaceuticals Holdings, Inc.*		53,827
	4,937	Express Scripts, Inc.*		394,565
	7,090	Forest Laboratories, Inc.*		196,180
	2,857	Genzyme Corp.*		144,564
	4,533	Gilead Sciences, Inc.*		192,879
	81,671	Health Management Associates, Inc., Class A*		498,193
	13,714	Health Net, Inc.*		204,476
	2,742	Henry Schein, Inc.*		144,860
	6,265	Hill-Rom Holdings, Inc.		122,731
	8,631	Hologic, Inc.*		127,566

See Notes to Financial Statements.

17

Schedule of Investments (Continued)

PowerShares FTSE RAFI US 1000 Portfolio

October 31, 2009 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	3,995	Hospira, Inc.*	$	178,337
	12,513	Humana, Inc.*		470,239
	3,673	IMS Health, Inc.		60,200
	2,304	Inverness Medical Innovations, Inc.*		87,575
	42,499	Johnson & Johnson		2,509,566
	3,549	Kindred Healthcare, Inc.*		52,170
	1,900	Kinetic Concepts, Inc.*		63,061
	13,985	King Pharmaceuticals, Inc.*		141,668
	2,108	Laboratory Corp. of America Holdings*		145,220
	2,142	Life Technologies Corp.*		101,038
	3,178	LifePoint Hospitals, Inc.*		90,033
	2,488	Lincare Holdings, Inc.*		78,148
	1,310	Magellan Health Services, Inc.*		42,090
	19,405	McKesson Corp.		1,139,656
	14,168	Medco Health Solutions, Inc.*		795,108
	17,717	Medtronic, Inc.		632,497
	63,686	Merck & Co., Inc.		1,969,808
	763	Mettler-Toledo International, Inc.*		74,393
	859	Millipore Corp.*		57,562
	4,631	Mylan, Inc.*		75,207
	4,334	Omnicare, Inc.		93,918
	1,448	Owens & Minor, Inc.		59,209
	3,628	Patterson Cos., Inc.*		92,623
	274,636	Pfizer, Inc.		4,677,051
	1,701	Pharmaceutical Product Development, Inc.		36,657
	2,685	Quest Diagnostics, Inc.		150,172
	17,440	Schering-Plough Corp.		491,808
	4,552	St. Jude Medical, Inc.*		155,132
	4,327	Stryker Corp.		199,042
	76,745	Sunrise Senior Living, Inc.*		319,259
	1,183	Teleflex, Inc.		58,854
	124,390	Tenet Healthcare Corp.*		636,877
	8,451	Thermo Fisher Scientific, Inc.*		380,295
	50,710	UnitedHealth Group, Inc.		1,315,925
	5,313	Universal American Financial Corp.*		53,130
	2,051	Universal Health Services, Inc., Class B		114,138
	1,831	Varian Medical Systems, Inc.*		75,034
	1,995	Warner Chilcott PLC, Class A (Ireland)*		44,189
	1,312	Waters Corp.*		75,348
	2,773	Watson Pharmaceuticals, Inc.*		95,447
	30,882	WellPoint, Inc.*		1,444,042
	5,792	Zimmer Holdings, Inc.*		304,485
				32,072,967
		Industrials—11.3%
	18,896	3M Co.		1,390,179
	1,918	Acuity Brands, Inc.		60,724
	3,310	Aecom Technology Corp.*		83,544
	6,524	AGCO Corp.*		183,390
	11,774	Aircastle Ltd. (Bermuda)		93,250
	2,347	Alaska Air Group, Inc.*		60,365

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	2,533	Alexander & Baldwin, Inc.	$	73,026
	1,029	Alliant Techsystems, Inc.*		80,036
	1,560	Amerco, Inc.*		65,941
	1,833	AMETEK, Inc.		63,953
	75,411	AMR Corp.*		406,465
	3,157	Armstrong World Industries, Inc.*		117,598
	6,865	Avery Dennison Corp.		244,737
	602,653	Avis Budget Group, Inc.*		5,062,285
	5,239	BE Aerospace, Inc.*		92,888
	29,144	BlueLinx Holdings, Inc.*		85,392
	28,049	Boeing Co. (The)		1,340,742
	3,980	Briggs & Stratton Corp.		74,426
	2,273	Brink's Co. (The)		53,938
	8,811	Burlington Northern Santa Fe Corp.		663,645
	2,655	C.H. Robinson Worldwide, Inc.		146,317
	2,618	Carlisle Cos., Inc.		81,263
	34,696	Caterpillar, Inc.		1,910,362
	33,910	China BAK Battery, Inc.*		111,564
	42,228	China Yuchai International Ltd. (Bermuda)*		451,840
	2,650	Cintas Corp.		73,379
	21,115	Continental Airlines, Inc., Class B*		242,823
	4,477	Con-way, Inc.		147,696
	6,134	Cooper Industries PLC, Class A (Ireland)		237,325
	4,644	Corrections Corp. of America*		111,177
	2,646	Covanta Holding Corp.*		45,458
	3,024	Crane Co.		84,218
	13,615	CSX Corp.		574,281
	8,398	Cummins, Inc.		361,618
	4,122	Danaher Corp.		281,244
	17,287	Deere & Co.		787,423
	79,422	Delta Air Lines, Inc.*		567,073
	6,018	Deluxe Corp.		85,636
	1,635	Donaldson Co., Inc.		58,321
	7,089	Dover Corp.		267,114
	658	Dun & Bradstreet Corp. (The)		50,377
	8,154	Eaton Corp.		492,909
	4,934	EMCOR Group, Inc.*		116,541
	22,375	Emerson Electric Co.		844,656
	2,677	Equifax, Inc.		73,296
	2,603	Expeditors International of Washington, Inc.		83,869
	2,024	Fastenal Co.		69,828
	15,000	FedEx Corp.		1,090,350
	1,203	Flowserve Corp.		118,147
	4,826	Fluor Corp.		214,371
	3,916	Foster Wheeler AG (Switzerland)*		109,609
	2,329	Gardner Denver, Inc.*		83,634
	2,616	GATX Corp.*		71,103
	104,576	GenCorp, Inc.*		778,045
	3,459	General Cable Corp.*		107,713
	11,696	General Dynamics Corp.		733,339
	735,119	General Electric Co.		10,482,797

See Notes to Financial Statements.

18

Schedule of Investments (Continued)

PowerShares FTSE RAFI US 1000 Portfolio

October 31, 2009 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	3,962	Goodrich Corp.	$	215,335
	1,230	Granite Construction, Inc.		35,129
	3,778	Harsco Corp.		118,969
	124,136	Hertz Global Holdings, Inc.*		1,155,706
	4,554	HNI Corp.		119,861
	24,734	Honeywell International, Inc.		887,703
	2,501	Hubbell, Inc., Class B		106,368
	14,147	Illinois Tool Works, Inc.		649,630
	18,724	Ingersoll-Rand PLC (Ireland)		591,491
	4,759	Iron Mountain, Inc.*		116,262
	4,430	ITT Corp.		224,601
	2,112	J.B. Hunt Transport Services, Inc.		63,487
	4,140	Jacobs Engineering Group, Inc.*		175,081
	10,964	JetBlue Airways Corp.*		54,381
	3,036	Joy Global, Inc.		153,045
	3,400	Kansas City Southern*		82,382
	12,065	KBR, Inc.		246,971
	7,925	Kelly Services, Inc., Class A		87,809
	3,749	Kennametal, Inc.		88,326
	3,473	L-3 Communications Holdings, Inc.		251,063
	2,142	Lennox International, Inc.		72,121
	1,421	Lincoln Electric Holdings, Inc.		67,412
	9,892	Lockheed Martin Corp.		680,471
	15,481	Manitowoc Co., Inc. (The)		141,496
	6,969	Manpower, Inc.		330,400
	57,465	Masco Corp.		675,214
	6,112	McDermott International, Inc.*		135,870
	1,802	Moog, Inc., Class A*		44,996
	8,196	MPS Group, Inc.*		110,810
	1,420	MSC Industrial Direct Co., Class A		61,131
	3,005	Mueller Industries, Inc.		71,098
	19,956	Mueller Water Products, Inc., Class A		89,403
	4,251	Navistar International Corp.*		140,878
	12,440	Norfolk Southern Corp.		579,953
	18,518	Northrop Grumman Corp.		928,307
	14,559	Oshkosh Corp.		455,114
	14,384	Owens Corning*		318,030
	15,516	PACCAR, Inc.		580,454
	2,564	Pall Corp.		81,381
	6,672	Parker Hannifin Corp.		353,349
	3,703	Pentair, Inc.		107,757
	9,275	Pitney Bowes, Inc.		227,238
	2,226	Precision Castparts Corp.		212,650
	3,843	Quanta Services, Inc.*		81,472
	27,350	R.R. Donnelley & Sons Co.		549,188
	10,908	Raytheon Co.		493,914
	4,513	Republic Services, Inc.		116,932
	4,897	Robert Half International, Inc.		113,610
	6,743	Rockwell Automation, Inc.		276,126
	3,453	Rockwell Collins, Inc.		173,962
	1,350	Roper Industries, Inc.		68,243

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	4,177	RSC Holdings, Inc.*	$	28,153
	5,649	Ryder System, Inc.		229,067
	19	Seaboard Corp.		25,669
	3,688	Shaw Group, Inc. (The)*		94,634
	3,942	SkyWest, Inc.		55,070
	2,628	Snap-On, Inc.		96,001
	31,875	Southwest Airlines Co.		267,750
	7,660	Spirit Aerosystems Holdings, Inc., Class A*		121,947
	2,020	SPX Corp.		106,616
	3,934	Stanley Works (The)		177,935
	12,785	Steelcase, Inc., Class A		73,769
	17,161	Terex Corp.*		346,995
	43,290	Textron, Inc.		769,696
	2,202	Thomas & Betts Corp.*		75,330
	7,260	Timken Co. (The)		159,938
	8,247	Trinity Industries, Inc.		139,209
	36,927	Tyco International Ltd. (Switzerland)		1,238,901
	55,606	UAL Corp.*		361,995
	15,070	Union Pacific Corp.		830,960
	27,178	United Parcel Service, Inc., Class B		1,458,915
	31,078	United Rentals, Inc.*		294,930
	3,216	United Stationers, Inc.*		151,602
	25,799	United Technologies Corp.		1,585,349
	3,859	URS Corp.*		149,961
	14,254	US Airways Group, Inc.*		43,617
	15,229	USG Corp.*		200,109
	3,344	UTi Worldwide, Inc. (British Virgin Islands)*		41,700
	18,420	Volt Information Sciences, Inc.*		149,386
	1,826	W.W. Grainger, Inc.		171,151
	14,810	Waste Management, Inc.		442,523
	2,363	Werner Enterprises, Inc.		44,306
	5,253	WESCO International, Inc.*		134,267
	56,262	YRC Worldwide, Inc.*		205,356
				56,478,627
		Information Technology—9.3%
	12,173	Accenture PLC, Class A (Ireland)		451,375
	5,749	ACI Worldwide, Inc.*		92,501
	3,212	Activision Blizzard, Inc.*		34,786
	7,032	Adobe Systems, Inc.*		231,634
	56,772	Advanced Micro Devices, Inc.*		261,151
	3,223	Affiliated Computer Services, Inc., Class A*		167,886
	9,932	Agilent Technologies, Inc.*		245,718
	1,489	Alliance Data Systems Corp.*		81,865
	2,979	Altera Corp.		58,954
	27,247	Amkor Technology, Inc.*		150,131
	2,420	Amphenol Corp., Class A		97,090
	6,583	Analog Devices, Inc.		168,722
	2,424	Anixter International, Inc.*		101,444
	8,383	Apple, Inc.*		1,580,196
	34,026	Applied Materials, Inc.		415,117

See Notes to Financial Statements.

19

Schedule of Investments (Continued)

PowerShares FTSE RAFI US 1000 Portfolio

October 31, 2009 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	13,097	Arrow Electronics, Inc.*	$	331,878
	13,376	Atmel Corp.*		49,759
	3,687	Autodesk, Inc.*		91,917
	9,374	Automatic Data Processing, Inc.		373,085
	14,419	Avnet, Inc.*		357,303
	2,417	AVX Corp.		27,360
	5,723	Benchmark Electronics, Inc.*		96,146
	1,850	BMC Software, Inc.*		68,746
	8,203	Brightpoint, Inc.*		60,456
	6,898	Broadcom Corp., Class A*		183,556
	3,638	Broadridge Financial Solutions, Inc.		75,707
	16,196	Brocade Communications Systems, Inc.*		138,962
	6,210	CA, Inc.		129,913
	1,067	CACI International, Inc., Class A*		50,811
	17,003	Cadence Design Systems, Inc.*		103,888
	98,278	Cisco Systems, Inc.*		2,245,652
	3,000	Citrix Systems, Inc.*		110,280
	2,768	Cognizant Technology Solutions Corp., Class A*		106,983
	6,853	CommScope, Inc.*		185,168
	10,717	Computer Sciences Corp.*		543,459
	10,960	Convergys Corp.*		118,916
	30,771	Corning, Inc.		449,564
	99,959	Dell, Inc.*		1,448,406
	2,775	Diebold, Inc.		83,916
	1,889	DST Systems, Inc.*		78,790
	25,757	eBay, Inc.*		573,608
	8,309	Electronic Arts, Inc.*		151,556
	44,905	EMC Corp.*		739,585
	10,830	Fairchild Semiconductor International, Inc., Class A*		81,008
	7,758	Fidelity National Information Services, Inc.		168,814
	3,850	Fiserv, Inc.*		176,600
	1,787	Google, Inc., Class A*		958,046
	2,472	Harris Corp.		103,132
	2,232	Hewitt Associates, Inc., Class A*		79,281
	62,656	Hewlett-Packard Co.		2,973,654
	17,220	IAC/InterActiveCorp.*		326,147
	10,899	InfoSpace, Inc.*		93,404
	25,430	Ingram Micro, Inc., Class A*		448,840
	21,600	Insight Enterprises, Inc.*		227,232
	150,757	Intel Corp.		2,880,966
	22,218	International Business Machines Corp.		2,679,713
	3,795	International Rectifier Corp.*		69,373
	4,655	Intuit, Inc.*		135,321
	33,976	Jabil Circuit, Inc.		454,599
	15,312	JDS Uniphase Corp.*		85,594
	11,157	Juniper Networks, Inc.*		284,615
	5,623	KLA-Tencor Corp.		182,804
	4,101	Lam Research Corp.*		138,286
	2,886	Lender Processing Services, Inc.		114,863

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	6,335	Lexmark International, Inc., Class A*	$	161,543
	2,944	Linear Technology Corp.		76,191
	21,712	LSI Corp.*		111,165
	9,469	Marvell Technology Group Ltd. (Bermuda)*		129,915
	723	MasterCard, Inc., Class A		158,351
	2,102	McAfee, Inc.*		88,032
	4,432	MEMC Electronic Materials, Inc.*		55,045
	3,727	Microchip Technology, Inc.		89,299
	82,777	Micron Technology, Inc.*		562,056
	246,142	Microsoft Corp.		6,825,518
	3,334	Molex, Inc.		62,246
	2,791	Molex, Inc., Class A		46,191
	204,434	Motorola, Inc.		1,751,999
	5,369	National Semiconductor Corp.		69,475
	14,144	NCR Corp.*		143,562
	5,557	NetApp, Inc.*		150,317
	4,563	Novellus Systems, Inc.*		93,907
	11,806	NVIDIA Corp.*		141,200
	57,376	Oracle Corp.		1,210,634
	5,675	Paychex, Inc.		161,227
	3,544	Perot Systems Corp., Class A*		106,107
	17,300	QUALCOMM, Inc.		716,393
	7,834	SAIC, Inc.*		138,740
	15,326	SanDisk Corp.*		313,877
	81,785	Sanmina-SCI Corp.*		525,060
	55,107	Seagate Technology (Cayman Islands)		768,743
	58,399	Sun Microsystems, Inc.*		477,704
	20,859	Symantec Corp.*		366,701
	1,751	SYNNEX Corp.*		45,053
	2,908	Synopsys, Inc.*		63,976
	15,039	Tech Data Corp.*		577,949
	17,263	Tellabs, Inc.*		103,923
	2,463	Teradata Corp.*		68,668
	10,500	Teradyne, Inc.*		87,885
	31,565	Texas Instruments, Inc.		740,199
	6,932	Total System Services, Inc.		110,704
	39,318	Tyco Electronics Ltd. (Switzerland)		835,508
	3,366	VeriSign, Inc.*		76,778
	7,475	Visa, Inc., Class A		566,306
	40,721	Vishay Intertechnology, Inc.*		253,692
	2,438	VMware, Inc., Class A*		93,692
	9,782	Western Digital Corp.*		329,458
	8,932	Western Union Co. (The)		162,294
	5,640	Wright Express Corp.*		157,412
	60,616	Xerox Corp.		455,832
	4,609	Xilinx, Inc.		100,246
	18,891	Yahoo!, Inc.*		300,367
				46,407,372

See Notes to Financial Statements.

20

Schedule of Investments (Continued)

PowerShares FTSE RAFI US 1000 Portfolio

October 31, 2009 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
		Materials—4.7%
	6,177	Air Products & Chemicals, Inc.	$	476,432
	1,598	Airgas, Inc.		70,887
	18,569	AK Steel Holding Corp.		294,690
	2,040	Albemarle Corp.		64,423
	129,410	Alcoa, Inc.		1,607,272
	5,398	Allegheny Technologies, Inc.		166,582
	28,384	Ashland, Inc.		980,383
	2,835	Ball Corp.		139,851
	4,615	Bemis Co., Inc.		119,205
	106,911	Boise, Inc.*		511,035
	5,751	Cabot Corp.		126,119
	11,166	Celanese Corp., Series A		306,507
	582	CF Industries Holdings, Inc.		48,452
	3,364	Cliffs Natural Resources, Inc.		119,658
	10,566	Commercial Metals Co.		156,799
	5,918	Crown Holdings, Inc.*		157,715
	2,895	Cytec Industries, Inc.		96,027
	17,500	Domtar Corp.*		733,075
	201,074	Dow Chemical Co. (The)		4,721,218
	43,343	E.I. du Pont de Nemours & Co.		1,379,174
	5,935	Eastman Chemical Co.		311,647
	3,434	Ecolab, Inc.		150,959
	1,400	FMC Corp.		71,540
	14,586	Freeport-McMoRan Copper & Gold, Inc.*		1,070,029
	18,325	Graphic Packaging Holding Co.*		41,964
	1,919	Greif, Inc., Class A		102,705
	46,044	Huntsman Corp.		366,050
	2,282	International Flavors & Fragrances, Inc.		86,921
	83,178	International Paper Co.		1,855,701
	45,426	Louisiana-Pacific Corp.*		238,487
	3,220	Lubrizol Corp. (The)		214,323
	809	Martin Marietta Materials, Inc.		67,406
	17,410	MeadWestvaco Corp.		397,470
	4,236	Monsanto Co.		284,575
	2,477	Mosaic Co. (The)		115,750
	8,079	Nalco Holding Co.		170,871
	6,193	Newmont Mining Corp.		269,148
	12,933	Nucor Corp.		515,380
	4,640	Olin Corp.		70,853
	8,210	Owens-Illinois, Inc.*		261,735
	4,097	Packaging Corp. of America		74,893
	5,002	Pactiv Corp.*		115,496
	26,764	PolyOne Corp.*		149,343
	7,075	PPG Industries, Inc.		399,242
	5,141	Praxair, Inc.		408,401
	3,640	Reliance Steel & Aluminum Co.		132,787
	9,389	Rockwood Holdings, Inc.*		186,653
	6,751	RPM International, Inc.		118,953
	2,173	Scotts Miracle-Gro Co. (The), Class A		88,267
	8,097	Sealed Air Corp.		155,705

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	1,789	Sigma-Aldrich Corp.	$	92,903
	756	Silgan Holdings, Inc.		40,635
	4,618	Sonoco Products Co.		123,532
	8,405	Southern Copper Corp.		264,758
	13,381	Steel Dynamics, Inc.		179,172
	29,121	Temple-Inland, Inc.		449,919
	1,731	Terra Industries, Inc.		54,994
	19,205	United States Steel Corp.		662,380
	4,210	Valspar Corp. (The)		106,808
	3,636	Vulcan Materials Co.		167,365
	1,321	Westlake Chemical Corp.		32,087
	20,047	Weyerhaeuser Co.		728,508
	7,205	Worthington Industries, Inc.		79,615
				23,751,434
		Telecommunication Services—2.4%
	3,482	American Tower Corp., Class A*		128,207
	190,029	AT&T, Inc.		4,878,044
	13,645	CenturyTel, Inc.		442,917
	3,710	Crown Castle International Corp.*		112,116
	26,627	Frontier Communications Corp.		190,916
	39,963	Ibasis, Inc.*		89,917
	5,816	iPCS, Inc.*		138,828
	1,637	Leap Wireless International, Inc.*		21,641
	115,758	Level 3 Communications, Inc.*		136,594
	4,109	MetroPCS Communications, Inc.*		25,599
	1,832	Millicom International Cellular SA (Luxembourg)		114,793
	6,406	NII Holdings, Inc.*		172,514
	93,218	Qwest Communications International, Inc.		334,653
	322,943	Sprint Nextel Corp.*		955,911
	4,751	Telephone & Data Systems, Inc.		140,725
	2,949	United States Cellular Corp.*		107,963
	123,343	Verizon Communications, Inc.		3,649,719
	16,764	Windstream Corp.		161,605
				11,802,662
		Utilities—3.3%
	61,023	AES Corp. (The)*		797,571
	3,080	AGL Resources, Inc.		107,677
	4,138	Allegheny Energy, Inc.		94,429
	5,371	Alliant Energy Corp.		142,654
	15,301	Ameren Corp.		372,426
	15,553	American Electric Power Co., Inc.		470,012
	5,972	American Water Works Co., Inc.		113,289
	2,196	Aqua America, Inc.		33,928
	5,417	Atmos Energy Corp.		150,863
	2,438	Black Hills Corp.		59,414
	9,880	Calpine Corp.*		111,051
	19,736	CenterPoint Energy, Inc.		248,674
	12,006	CMS Energy Corp.		159,680
	9,005	Consolidated Edison, Inc.		366,323

See Notes to Financial Statements.

21

Schedule of Investments (Continued)

PowerShares FTSE RAFI US 1000 Portfolio

October 31, 2009 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	18,294	Constellation Energy Group, Inc.	$	565,650
	16,224	Dominion Resources, Inc.		553,076
	2,622	DPL, Inc.		66,441
	10,823	DTE Energy Co.		400,235
	65,105	Duke Energy Corp.		1,029,961
	98,906	Dynegy, Inc., Class A*		197,812
	15,135	Edison International		481,596
	1,634	Energen Corp.		71,700
	6,238	Entergy Corp.		478,579
	1,831	EQT Corp.		76,646
	14,211	Exelon Corp.		667,349
	12,081	FirstEnergy Corp.		522,866
	11,404	FPL Group, Inc.		559,936
	7,897	Great Plains Energy, Inc.		136,618
	5,522	Hawaiian Electric Industries, Inc.		98,568
	2,054	IDACORP, Inc.		57,697
	5,523	Integrys Energy Group, Inc.		191,096
	7,702	MDU Resources Group, Inc.		159,816
	11,561	Mirant Corp.*		161,623
	2,860	National Fuel Gas Co.		129,672
	1,523	New Jersey Resources Corp.		53,610
	2,309	Nicor, Inc.		85,618
	28,269	NiSource, Inc.		365,235
	6,744	Northeast Utilities		155,449
	11,606	NRG Energy, Inc.*		266,822
	2,755	NSTAR		85,267
	10,735	NV Energy, Inc.		123,023
	5,294	OGE Energy Corp.		175,867
	7,333	ONEOK, Inc.		265,528
	14,038	Pepco Holdings, Inc.		209,587
	12,361	PG&E Corp.		505,441
	2,418	Piedmont Natural Gas Co., Inc.		56,291
	5,909	Pinnacle West Capital Corp.		185,070
	8,304	PNM Resources, Inc.		89,019
	5,139	Portland General Electric Co.		95,534
	10,820	PPL Corp.		318,541
	12,730	Progress Energy, Inc.		477,757
	16,192	Public Service Enterprise Group, Inc.		482,522
	3,814	Questar Corp.		151,950
	62,313	RRi Energy, Inc.*		328,389
	5,352	SCANA Corp.		181,112
	8,240	Sempra Energy		423,948
	17,590	Southern Co.		548,632
	2,662	Southwest Gas Corp.		66,523
	12,388	TECO Energy, Inc.		177,644
	4,382	UGI Corp.		104,642
	1,742	Unisource Energy Corp.		50,309
	3,359	Vectren Corp.		75,712
	4,624	Westar Energy, Inc.		88,550

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	2,092	WGL Holdings, Inc.	$	69,161
	3,467	Wisconsin Energy Corp.		151,404
	14,485	Xcel Energy, Inc.		273,187
				16,522,272
		Total Common Stocks and Other Equity Interests(Cost $567,891,927)		499,337,584
		Money Market Fund—0.1%
	214,153	Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $214,153)		214,153
		Total Investments (Cost $568,106,080)—100.0%		499,551,737
		Other assets less liabilities—0.0%		141,999
		Net Assets—100.0%	$	499,693,736

REIT Real Estate Investment Trust

*  Non-income producing security.

(-)  Affiliated company. The Fund's Adviser is a subsidiary of Invesco Ltd. and therefore, Invesco Ltd. is considered to be affiliated with the Fund. See Note 4.

See Notes to Financial Statements.

22

Portfolio Composition

PowerShares FTSE RAFI US 1500 Small-Mid Portfolio

Sector Breakdown (% of the Fund's Net Assets) as of October 31, 2009

Consumer Discretionary	24.1
Financials	21.0
Industrials	16.3
Information Technology	15.3
Energy	6.3
Health Care	6.1
Materials	6.0
Consumer Staples	2.6
Utilities	1.3
Telecommunication Services	0.9
Money Market Fund	0.2
Other	(0.1	)

Schedule of Investments

PowerShares FTSE RAFI US 1500 Small-Mid Portfolio

October 31, 2009 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—99.9%
		Consumer Discretionary—24.1%
	39,377	1-800-FLOWERS.COM, Inc., Class A*	$	151,208
	15,793	4Kids Entertainment, Inc.*		28,427
	6,862	99 Cents Only Stores*		78,021
	32,664	A.C. Moore Arts & Crafts, Inc.*		156,134
	5,764	Aaron's, Inc.		144,388
	3,891	Aeropostale, Inc.*		146,029
	46,799	AH Belo Corp., Class A*		191,876
	30,854	American Greetings Corp., Class A		627,570
	1,794	America's Car-Mart, Inc.*		37,190
	4,317	Ameristar Casinos, Inc.		63,546
	2,757	Arbitron, Inc.		59,772
	11,862	Arctic Cat, Inc.		70,460
	16,100	Audiovox Corp., Class A*		104,006
	3,702	Bally Technologies, Inc.*		145,822
	67,860	Bassett Furniture Industries, Inc.		261,940
	4,991	Bebe Stores, Inc.		31,244
	2,935	Benihana, Inc.*		18,021
	8,695	Benihana, Inc., Class A*		42,084
	8,464	Big 5 Sporting Goods Corp.		124,844
	1,991	BJ's Restaurants, Inc.*		31,776
	42,266	Bluegreen Corp.*		121,303
	3,348	Blyth, Inc.		118,620
	6,053	Bob Evans Farms, Inc.		159,012
	54,009	Bon-Ton Stores, Inc. (The)		499,583
	11,481	Books-A-Million, Inc.		99,425
	3,100	Brink's Home Security Holdings, Inc.*		96,038
	22,987	Brookfield Homes Corp.*		129,417
	31,539	Brown Shoe Co., Inc.		327,059
	1,396	Buckle, Inc. (The)		41,894

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	567	Buffalo Wild Wings, Inc.*	$	23,253
	10,200	Build-A-Bear Workshop, Inc.*		52,836
	12,149	Cache, Inc.*		58,437
	4,205	California Pizza Kitchen, Inc.*		54,623
	12,338	Callaway Golf Co.		84,392
	292	Capella Education Co.*		20,119
	15,668	Carmike Cinemas, Inc.*		154,016
	8,300	Carriage Services, Inc.*		31,540
	8,286	Carrols Restaurant Group, Inc.*		53,776
	2,875	Carter's, Inc.*		67,850
	107,322	Casual Male Retail Group, Inc.*		269,378
	4,105	Cato Corp. (The), Class A		80,910
	3,470	CEC Entertainment, Inc.*		101,359
	260,625	Champion Enterprises, Inc.*		62,550
	13,115	Cheesecake Factory, Inc. (The)*		238,431
	1,938	Cherokee, Inc.		36,686
	3,142	Childrens Place Retail Stores, Inc. (The)*		98,816
	635	Chipotle Mexican Grill, Inc., Class A*		51,746
	733	Chipotle Mexican Grill, Inc., Class B*		58,574
	2,161	Choice Hotels International, Inc.		64,441
	9,985	Christopher & Banks Corp.		60,809
	432	Churchill Downs, Inc.		13,556
	1,554	Citi Trends, Inc.*		40,917
	12,304	CKE Restaurants, Inc.		107,660
	5,352	CKX, Inc.*		34,253
	2,204	Coinstar, Inc.*		69,955
	28,610	Coldwater Creek, Inc.*		164,507
	1,157	Columbia Sportswear Co.		44,024
	3,552	Conn's, Inc.*		22,413
	4,407	Corinthian Colleges, Inc.*		69,895

See Notes to Financial Statements.

23

Schedule of Investments (Continued)

PowerShares FTSE RAFI US 1500 Small-Mid Portfolio

October 31, 2009 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	81,027	Cost Plus, Inc.*	$	177,449
	3,118	CPI Corp.		35,420
	5,650	Cracker Barrel Old Country Store, Inc.		187,297
	13,344	CROCS, Inc.*		81,132
	2,126	CSS Industries, Inc.		43,158
	8,850	CTC Media, Inc.*		142,308
	16,913	Cumulus Media, Inc., Class A*		35,686
	1,007	Deckers Outdoor Corp.*		90,298
	30,852	Denny's Corp.*		67,874
	4,724	Destination Maternity Corp.*		94,716
	1,695	DeVry, Inc.		93,717
	6,903	DineEquity, Inc.		146,067
	8,493	Dover Downs Gaming & Entertainment, Inc.		40,342
	5,519	DreamWorks Animation SKG, Inc., Class A*		176,608
	10,495	Dress Barn, Inc.*		189,435
	6,159	Drew Industries, Inc.*		117,883
	16,059	drugstore.com, Inc.*		44,483
	9,644	DSW, Inc., Class A*		185,165
	1,807	Einstein Noah Restaurant Group, Inc.*		23,527
	172,852	Entravision Communications Corp., Class A*		362,989
	10,813	Ethan Allen Interiors, Inc.		134,730
	17,772	Finish Line, Inc. (The), Class A		180,208
	1,943	Fisher Communications, Inc.		37,869
	4,853	Fossil, Inc.*		129,721
	8,117	Fred's, Inc., Class A		96,105
	5,028	Gaiam, Inc., Class A*		32,833
	7,384	Gander Mountain Co.*		36,846
	15,295	Gaylord Entertainment Co.*		229,884
	7,748	Genesco, Inc.*		201,990
	14,679	Gentex Corp.		235,011
	6,330	G-III Apparel Group Ltd.*		101,343
	1,844	Global Sources Ltd. (Bermuda)*		11,414
	10,638	Golfsmith International Holdings, Inc.*		18,829
	141,961	Gray Television, Inc.		248,432
	18,357	Great Wolf Resorts, Inc.*		61,312
	2,805	Guess?, Inc.		102,523
	2,348	Gymboree Corp.*		99,954
	11,938	Harte-Hanks, Inc.		140,152
	10,734	Hastings Entertainment, Inc.*		46,049
	5,380	Haverty Furniture Cos., Inc.		65,152
	5,706	Helen of Troy Ltd.*		130,325
	2,674	hhgregg, Inc.*		44,094
	2,581	Hibbett Sports, Inc.*		48,368
	4,611	Hillenbrand, Inc.		92,128
	3,524	Hooker Furniture Corp.		45,142
	6,400	Hot Topic, Inc.*		49,280
	6,640	Iconix Brand Group, Inc.*		77,422
	6,709	International Speedway Corp., Class A		171,147

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	17,475	Interval Leisure Group, Inc.*	$	195,021
	16,355	Isle of Capri Casinos, Inc.*		126,751
	791	ITT Educational Services, Inc.*		71,467
	4,680	J.Crew Group, Inc.*		190,850
	5,935	Jackson Hewitt Tax Service, Inc.		29,141
	6,820	JAKKS Pacific, Inc.*		97,049
	7,443	Jo-Ann Stores, Inc.*		198,133
	3,761	John Wiley & Sons, Inc., Class A		132,462
	2,125	Jos. A. Bank Clothiers, Inc.*		87,083
	80,610	Journal Communications, Inc., Class A		286,972
	6,188	Kenneth Cole Productions, Inc., Class A		58,848
	32,183	Kid Brands, Inc.*		159,950
	5,502	Kirkland's, Inc.*		69,215
	4,791	Knology, Inc.*		48,150
	26,297	Krispy Kreme Doughnuts, Inc.*		89,147
	4,939	K-Swiss, Inc., Class A		40,302
	10,388	Landry's Restaurants, Inc.*		113,229
	103,975	La-Z-Boy, Inc.		738,222
	25,296	Leapfrog Enterprises, Inc.*		83,477
	234,609	Lee Enterprises, Inc.*		715,557
	4,598	Life Time Fitness, Inc.*		99,087
	12,108	Lifetime Brands, Inc.		73,496
	127,799	Lin TV Corp., Class A*		500,972
	632	Lincoln Educational Services Corp.*		12,526
	55,510	Lithia Motors, Inc., Class A*		462,953
	6,773	LKQ Corp.*		116,970
	45,881	LodgeNet Interactive Corp.*		222,523
	20,160	Lodgian, Inc.*		35,482
	5,440	Luby's, Inc.*		19,421
	1,697	Lululemon Athletica, Inc.*		42,629
	1,751	Lumber Liquidators, Inc.*		37,209
	15,380	M/I Homes, Inc.*		171,795
	1,717	Maidenform Brands, Inc.*		24,107
	5,163	Marcus Corp.		60,407
	2,307	Marine Products Corp.		11,189
	44,825	MarineMax, Inc.*		305,258
	7,767	Martha Stewart Living Omnimedia, Inc., Class A*		40,233
	1,999	Marvel Entertainment, Inc.*		99,890
	1,837	Matthews International Corp., Class A		67,473
	11,586	McCormick & Schmick's Seafood Restaurants, Inc.*		69,748
	50,257	Media General, Inc., Class A		416,631
	17,890	Mediacom Communications Corp., Class A*		85,514
	12,338	Men's Wearhouse, Inc. (The)		285,871
	14,414	Meritage Homes Corp.*		262,911
	119,255	Modine Manufacturing Co.		1,228,326
	2,216	Monarch Casino & Resort, Inc.*		15,379
	1,336	Monro Muffler Brake, Inc.		41,403
	14,136	Morgans Hotel Group Co.*		46,932

See Notes to Financial Statements.

24

Schedule of Investments (Continued)

PowerShares FTSE RAFI US 1500 Small-Mid Portfolio

October 31, 2009 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	521	Morningstar, Inc.*	$	26,581
	8,866	Morton's Restaurant Group, Inc.*		33,159
	8,348	Movado Group, Inc.*		87,487
	29,399	MTR Gaming Group, Inc.*		63,796
	15,598	Multimedia Games, Inc.*		76,586
	465	National Presto Industries, Inc.		40,422
	60,900	Nautilus, Inc.*		109,011
	2,821	Netflix, Inc.*		150,782
	13,455	New Frontier Media, Inc.*		26,103
	14,604	New York & Co., Inc.*		64,258
	25,424	Nexstar Broadcasting Group, Inc., Class A*		56,187
	2,779	NutriSystem, Inc.		59,804
	25,365	O'Charley's, Inc.*		177,809
	18,078	Orbitz Worldwide, Inc.*		94,548
	25,440	Orient-Express Hotels Ltd., Class A		218,784
	6,914	Orleans Homebuilders, Inc.*		15,073
	2,010	Overstock.com, Inc.*		28,140
	15,332	Oxford Industries, Inc.		296,674
	3,252	P.F. Chang's China Bistro, Inc.*		94,926
	75,991	Pacific Sunwear of California, Inc.*		458,986
	13,274	Palm Harbor Homes, Inc.*		29,336
	1,749	Panera Bread Co., Class A*		104,905
	2,271	Papa John's International, Inc.*		51,097
	894	Peet's Coffee & Tea, Inc.*		30,396
	35,082	Pep Boys - Manny, Moe & Jack (The)		307,669
	7,837	Perry Ellis International, Inc.*		107,132
	8,253	Phillips-Van Heusen Corp.		331,358
	417,175	Pier 1 Imports, Inc.*		1,468,456
	15,324	Pinnacle Entertainment, Inc.*		129,488
	17,306	Playboy Enterprises, Inc., Class B*		53,129
	7,129	Polaris Industries, Inc.		299,917
	6,782	Pool Corp.		132,792
	667	Pre-Paid Legal Services, Inc.*		26,373
	1,117	Priceline.com, Inc.*		176,251
	129,689	Radio One, Inc., Class D*		229,550
	15,133	RC2 Corp.*		197,637
	7,972	Red Lion Hotels Corp.*		38,026
	2,550	Red Robin Gourmet Burgers, Inc.*		42,611
	52,698	Retail Ventures, Inc.*		337,794
	4,417	Rex Stores Corp.*		54,550
	17,846	RHI Entertainment, Inc.*		46,757
	94,639	Ruby Tuesday, Inc.*		630,296
	16,970	Ruth's Hospitality Group, Inc.*		52,777
	6,439	Saga Communications, Inc., Class A*		82,097
	48,380	Salem Communications Corp., Class A*		148,527
	13,798	Sally Beauty Holdings, Inc.*		93,137
	8,242	Scientific Games Corp., Class A*		115,965
	51,735	Sealy Corp.*		150,031
	142,849	Select Comfort Corp.*		781,384
	4,904	Shoe Carnival, Inc.*		73,609
	7,397	Shuffle Master, Inc.*		57,771

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	1,180	Shutterfly, Inc.*	$	16,638
	45,160	Sinclair Broadcast Group, Inc., Class A		177,930
	15,026	Skechers U.S.A., Inc., Class A*		327,867
	1,863	Skyline Corp.		32,584
	7,215	Sonic Corp.*		67,460
	13,463	Sotheby's		213,523
	314,567	Spanish Broadcasting System, Inc., Class A*		232,780
	10,324	Spartan Motors, Inc.		51,517
	3,218	Speedway Motorsports, Inc.		43,572
	11,403	Stage Stores, Inc.		134,555
	20,372	Standard Motor Products, Inc.		170,310
	2,596	Stanley Furniture Co., Inc.		20,405
	6,722	Steak N Shake Co. (The)*		78,311
	49,957	Stein Mart, Inc.*		474,592
	1,349	Steiner Leisure Ltd.*		49,859
	5,000	Steinway Musical Instruments*		58,600
	2,357	Steven Madden Ltd.*		95,458
	24,341	Stewart Enterprises, Inc., Class A		111,482
	14,787	Stoneridge, Inc.*		108,684
	243	Strayer Education, Inc.		49,322
	7,345	Superior Industries International, Inc.		97,542
	2,317	Syms Corp.*		16,289
	3,734	Systemax, Inc.*		50,334
	20,332	Talbots, Inc. (The)		184,411
	9,685	Tempur-Pedic International, Inc.*		187,598
	5,037	Texas Roadhouse, Inc.*		47,700
	8,495	Timberland Co. (The), Class A*		137,449
	6,204	Town Sports International Holdings, Inc.*		18,426
	91,549	Trans World Entertainment Corp.*		126,338
	53,031	Tuesday Morning Corp.*		171,290
	9,918	Tupperware Brands Corp.		446,508
	45,808	Tween Brands, Inc.*		388,452
	4,630	Ulta Salon Cosmetics & Fragrance, Inc.*		70,098
	2,680	Under Armour, Inc., Class A*		71,958
	96,277	Unifi, Inc.*		267,650
	3,022	UniFirst Corp.		127,136
	1,363	Universal Electronics, Inc.*		28,078
	1,917	Universal Technical Institute, Inc.*		34,487
	5,938	Urban Outfitters, Inc.*		186,334
	2,549	Vail Resorts, Inc.*		87,788
	72,316	Valassis Communications, Inc.*		1,318,321
	107,343	ValueVision Media, Inc., Class A*		340,277
	2,305	Volcom, Inc.*		38,286
	6,155	Warnaco Group, Inc. (The)*		249,462
	2,803	Weight Watchers International, Inc.		74,308
	17,037	Wendy's/Arby's Group, Inc., Class A		67,296
	7,416	West Marine, Inc.*		56,510
	13,064	Wet Seal, Inc. (The), Class A*		41,674
	1,003	Weyco Group, Inc.		22,367
	13,062	Winnebago Industries, Inc.*		150,213
	3,127	WMS Industries, Inc.*		125,017

See Notes to Financial Statements.

25

Schedule of Investments (Continued)

PowerShares FTSE RAFI US 1500 Small-Mid Portfolio

October 31, 2009 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	5,578	Wolverine World Wide, Inc.	$	142,685
	7,498	World Wrestling Entertainment, Inc., Class A		99,573
	2,373	Zumiez, Inc.*		31,964
				36,568,811
		Consumer Staples—2.6%
	23,196	Alliance One International, Inc.*		102,294
	5,795	Andersons, Inc. (The)		179,819
	285	Arden Group, Inc., Class A		32,140
	29,663	B&G Foods, Inc., Class A		231,668
	1,030	Boston Beer Co., Inc., Class A*		39,140
	1,722	Cal-Maine Foods, Inc.		46,752
	16,435	Central European Distribution Corp.*		511,293
	4,385	Central Garden & Pet Co.*		43,499
	10,950	Central Garden & Pet Co., Class A*		103,587
	267	Chattem, Inc.*		16,920
	1,409	Coca-Cola Bottling Co. Consolidated		63,278
	9,007	Darling International, Inc.*		62,599
	1,698	Diamond Foods, Inc.		51,195
	13,779	Elizabeth Arden, Inc.*		146,746
	700	Farmer Bros. Co.		13,230
	5,720	Flowers Foods, Inc.		133,619
	1,296	Green Mountain Coffee Roasters, Inc.*		86,249
	6,401	Hain Celestial Group, Inc. (The)*		112,274
	1,412	Hansen Natural Corp.*		51,044
	3,650	Herbalife Ltd. (Cayman Islands)		122,823
	8,050	Imperial Sugar Co.		100,545
	4,955	Ingles Markets, Inc., Class A		76,208
	1,882	Inter Parfums, Inc.		23,111
	1,061	J & J Snack Foods Corp.		41,559
	2,067	Lancaster Colony Corp.		100,415
	2,650	Lance, Inc.		63,918
	5,387	Mannatech, Inc.		18,316
	26,771	MGP Ingredients, Inc.*		116,186
	1,524	National Beverage Corp.*		16,688
	157,541	New Dragon Asia Corp.*		18,905
	6,777	Nu Skin Enterprises, Inc., Class A		154,245
	5,783	Prestige Brands Holdings, Inc.*		39,093
	2,844	PriceSmart, Inc.		54,889
	33,814	Reddy Ice Holdings, Inc.*		133,565
	1,709	Sanderson Farms, Inc.		62,532
	5,570	Spartan Stores, Inc.		78,871
	5,004	Susser Holdings Corp.*		59,498
	690	Synutra International, Inc.*		8,349
	2,263	Tootsie Roll Industries, Inc.		56,145
	3,376	TreeHouse Foods, Inc.*		126,262
	9,240	United Natural Foods, Inc.*		222,776
	1,022	USANA Health Sciences, Inc.*		29,454
	3,844	Vector Group Ltd.		55,776
	1,386	Village Super Market, Inc., Class A		41,580

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	1,480	WD-40 Co.	$	46,605
	1,998	Weis Markets, Inc.		70,729
				3,966,389
		Energy—6.3%
	2,618	Adams Resources & Energy, Inc.		59,429
	34,211	Allis-Chalmers Energy, Inc.*		119,054
	2,132	Approach Resources, Inc.*		16,544
	1,099	Arena Resources, Inc.*		40,949
	13,015	Atlas Energy, Inc.		340,733
	18,689	ATP Oil & Gas Corp.*		323,507
	5,851	Atwood Oceanics, Inc.*		207,652
	12,621	Basic Energy Services, Inc.*		88,347
	10,499	Berry Petroleum Co., Class A		266,255
	2,290	Bill Barrett Corp.*		70,944
	53,288	Brigham Exploration Co.*		506,236
	5,106	Bristow Group, Inc.*		148,840
	4,456	Bronco Drilling Co., Inc.*		28,162
	6,191	Cabot Oil & Gas Corp.		238,168
	9,505	Cal Dive International, Inc.*		72,998
	37,755	Callon Petroleum Co.*		60,408
	954	CARBO Ceramics, Inc.		55,704
	3,076	Carrizo Oil & Gas, Inc.*		71,302
	852	Clayton Williams Energy, Inc.*		22,322
	4,025	Comstock Resources, Inc.*		165,387
	3,888	Concho Resources, Inc.*		148,172
	617	Contango Oil & Gas Co.*		29,400
	8,739	Copano Energy LLC		149,262
	644	Core Laboratories NV (Netherlands)		67,169
	41,594	Crosstex Energy, Inc.		233,758
	2,308	Dawson Geophysical Co.*		55,738
	34,806	Delta Petroleum Corp.*		45,248
	4,364	DHT Maritime, Inc.		14,925
	6,148	Dresser-Rand Group, Inc.*		181,182
	2,363	Dril-Quip, Inc.*		114,818
	4,970	Encore Acquisition Co.*		184,238
	9,905	EXCO Resources, Inc.		154,716
	9,360	Geomet, Inc.*		17,597
	26,762	Global Industries Ltd.*		195,095
	1,041	Goodrich Petroleum Corp.*		26,723
	3,091	Gulf Island Fabrication, Inc.		59,100
	3,342	Gulfmark Offshore, Inc.*		92,473
	8,856	Gulfport Energy Corp.*		67,571
	12,306	Harvest Natural Resources, Inc.*		67,560
	4,966	Hornbeck Offshore Services, Inc.*		120,723
	45,657	International Coal Group, Inc.*		186,737
	60,646	ION Geophysical Corp.*		232,274
	2,316	James River Coal Co.*		43,981
	5,615	Knightsbridge Tankers Ltd. (Bermuda)		70,974
	1,504	Lufkin Industries, Inc.		85,803
	5,194	Matrix Service Co.*		46,071

See Notes to Financial Statements.

26

Schedule of Investments (Continued)

PowerShares FTSE RAFI US 1500 Small-Mid Portfolio

October 31, 2009 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	20,443	McMoRan Exploration Co.*	$	157,207
	271,499	Meridian Resource Corp.*		86,880
	2,207	NATCO Group, Inc., Class A*		96,402
	18,581	Newpark Resources, Inc.*		55,929
	4,635	Nordic American Tanker Shipping Ltd. (Bermuda)		131,171
	1,530	NuStar GP Holdings LLC		37,271
	4,353	Oceaneering International, Inc.*		222,438
	28,201	Oilsands Quest, Inc.*		33,841
	69,388	Pacific Ethanol, Inc.*		27,755
	54,807	Parker Drilling Co.*		284,996
	8,954	Patriot Coal Corp.*		101,180
	7,375	Penn Virginia Corp.		149,344
	5,103	Petroleum Development Corp.*		85,220
	17,619	PetroQuest Energy, Inc.*		108,004
	5,892	PHI, Inc.*		101,225
	6,268	Quicksilver Resources, Inc.*		76,470
	21,311	Rosetta Resources, Inc.*		288,338
	5,324	RPC, Inc.		49,779
	8,841	St. Mary Land & Exploration Co.		301,478
	9,564	StealthGas, Inc. (Greece)		61,401
	4,082	Superior Well Services, Inc.*		43,310
	22,055	Swift Energy Co.*		467,125
	1,969	T-3 Energy Services, Inc.*		39,419
	3,937	Teekay Tankers Ltd., Class A (Marshall Islands)		31,890
	27,079	TETRA Technologies, Inc.*		256,167
	19,418	Top Ships, Inc. (Greece)*		18,835
	4,006	Trico Marine Services, Inc.*		24,437
	4,812	Tsakos Energy Navigation Ltd. (Bermuda)		74,682
	3,793	Ultra Petroleum Corp.*		184,150
	4,088	Union Drilling, Inc.*		31,232
	4,382	VAALCO Energy, Inc.*		18,667
	7,297	Venoco, Inc.*		91,942
	34,568	Warren Resources, Inc.*		74,667
	6,662	Willbros Group, Inc.*		87,539
				9,494,640
		Financials—21.0%
	2,079	1st Source Corp.		30,811
	4,630	Acadia Realty Trust REIT		73,617
	67,231	Advance America Cash Advance Centers, Inc.		332,121
	33,297	Advanta Corp., Class A		11,984
	112,727	Advanta Corp., Class B		36,636
	13,828	Affirmative Insurance Holdings, Inc.		55,312
	1,868	Agree Realty Corp. REIT		43,580
	57	Alexander's, Inc. REIT*		15,100
	2,797	Altisource Portfolio Solutions SA (Luxembourg)*		42,654
	232,965	AMBAC Financial Group, Inc.		267,910

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	26,941	AMCORE Financial, Inc.*	$	21,283
	3,083	American Campus Communities, Inc. REIT		83,303
	21,187	American Equity Investment Life Holding Co.		139,199
	730	American Physicians Capital, Inc.		20,644
	2,501	American Safety Insurance Holdings Ltd. (Bermuda)*		37,065
	49,837	AmericanWest Bancorp*		18,938
	2,131	AMERISAFE, Inc.*		39,509
	2,489	AmTrust Financial Services, Inc.		28,076
	70,257	Anchor Bancorp Wisconsin, Inc.*		54,098
	101,532	Anthracite Capital, Inc. REIT		73,103
	8,711	Anworth Mortgage Asset Corp. REIT		62,109
	92,356	Arbor Realty Trust, Inc. REIT*		184,712
	32,992	Ares Capital Corp.		344,436
	2,749	Argo Group International Holdings Ltd. (Bermuda)*		93,356
	947	Arrow Financial Corp.		24,082
	84,435	Ashford Hospitality Trust, Inc. REIT		324,230
	13,874	Asset Acceptance Capital Corp.*		100,864
	3,582	Associated Estates Realty Corp. REIT		32,668
	31,523	Assured Guaranty Ltd. (Bermuda)		522,651
	14,994	Asta Funding, Inc.		97,911
	3,212	Avatar Holdings, Inc.*		52,356
	313	BancFirst Corp.		11,302
	10,290	Banco Latinoamericano de Comercio Exterior SA, Class E (Panama)		145,192
	3,655	BancTrust Financial Group, Inc.		11,733
	2,611	Bank Mutual Corp.		18,329
	9,236	Bank of Granite Corp.*		4,803
	200,528	BankAtlantic Bancorp, Inc., Class A		294,776
	2,642	BankFinancial Corp.		24,940
	13,140	Banner Corp.		40,340
	1,591	Beneficial Mutual Bancorp, Inc.*		14,717
	1,686	Berkshire Hills Bancorp, Inc.		34,647
	27,914	BGC Partners, Inc., Class A		134,825
	14,799	BioMed Realty Trust, Inc. REIT		200,822
	23,530	BlackRock Kelso Capital Corp.		172,004
	11,145	Boston Private Financial Holdings, Inc.		66,313
	7,900	Brookline Bancorp, Inc.		77,341
	7,930	Brown & Brown, Inc.		145,674
	5,099	BRT Realty Trust REIT*		25,444
	15,012	Calamos Asset Management, Inc., Class A		159,127
	2,284	Capital City Bank Group, Inc.		26,814
	426	Capital Southwest Corp.		31,635
	38,962	Capital Trust, Inc., Class A REIT		76,366
	6,919	Capitol Bancorp Ltd.		15,568
	838	Capitol Federal Financial		25,417
	20,364	CapLease, Inc. REIT		69,849
	6,973	Capstead Mortgage Corp. REIT		91,765
	8,342	Cardtronics, Inc.*		83,003

See Notes to Financial Statements.

27

Schedule of Investments (Continued)

PowerShares FTSE RAFI US 1500 Small-Mid Portfolio

October 31, 2009 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	3,081	Cash America International, Inc.	$	93,231
	11,898	Cathay General Bancorp		105,059
	10,706	Cedar Shopping Centers, Inc. REIT		64,985
	16,617	Central Pacific Financial Corp.		23,430
	3,408	Chemical Financial Corp.		74,806
	518,647	Citizens Republic Bancorp, Inc.*		312,225
	3,255	Citizens, Inc.*		19,628
	23,346	City Bank		54,163
	1,791	City Holding Co.		54,751
	1,959	CNA Surety Corp.*		28,327
	7,136	CoBiz Financial, Inc.		34,039
	1,103	Cohen & Steers, Inc.		21,321
	6,579	Columbia Banking System, Inc.		96,711
	3,863	Community Bank System, Inc.		71,890
	1,648	Community Trust Bancorp, Inc.		40,574
	5,948	Compass Diversified Holdings		60,848
	3,990	Corporate Office Properties Trust REIT		132,428
	6,647	Cowen Group, Inc.*		50,185
	6,545	Crawford & Co., Class B*		32,594
	727	Credit Acceptance Corp.*		24,987
	2,762	Cullen/Frost Bankers, Inc.		129,234
	13,525	CVB Financial Corp.		108,335
	14,638	Delphi Financial Group, Inc., Class A		317,645
	43,189	DiamondRock Hospitality Co. REIT*		328,668
	2,631	Digital Realty Trust, Inc. REIT		118,737
	4,391	Dime Community Bancshares		48,257
	7,601	Dollar Financial Corp.*		142,671
	2,053	Donegal Group, Inc., Class A		29,974
	25,655	East West Bancorp, Inc.		231,665
	2,660	EastGroup Properties, Inc. REIT		97,915
	7,576	Eaton Vance Corp.		215,083
	19,029	Education Realty Trust, Inc. REIT		95,335
	434	EMC Insurance Group, Inc.		8,932
	6,047	Employers Holdings, Inc.		89,617
	6,753	Encore Capital Group, Inc.*		101,092
	929	Enstar Group Ltd. (Bermuda)*		56,669
	8,448	Entertainment Properties Trust REIT		287,401
	1,283	Equity Lifestyle Properties, Inc. REIT		59,595
	2,455	Essex Property Trust, Inc. REIT		184,567
	2,441	Evercore Partners, Inc., Class A		79,674
	11,049	Extra Space Storage, Inc. REIT		105,739
	3,921	EZCORP, Inc., Class A*		50,855
	24,231	F.N.B. Corp.		171,555
	1,732	Farmers Capital Bank Corp.		19,260
	17,054	FBL Financial Group, Inc., Class A		343,638
	13,416	FBR Capital Markets Corp.*		81,838
	6,941	Federal Agricultural Mortgage Corp., Class C		55,736
	158,363	FelCor Lodging Trust, Inc. REIT		498,843
	2,456	Financial Federal Corp.*		50,152
	5,023	Financial Institutions, Inc.		53,043

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	3,958	First Acceptance Corp.*	$	8,708
	29,983	First BanCorp.		56,668
	6,802	First Busey Corp.		26,324
	2,310	First Cash Financial Services, Inc.*		39,686
	1,004	First Citizens BancShares, Inc., Class A		149,596
	11,538	First Commonwealth Financial Corp.		60,575
	3,621	First Community Bancshares, Inc.		42,148
	4,521	First Financial Bancorp*		57,326
	1,272	First Financial Bankshares, Inc.		61,628
	442	First Financial Corp.		12,257
	5,764	First Financial Holdings, Inc.		77,756
	3,222	First Financial Northwest, Inc.		19,074
	58,471	First Marblehead Corp. (The)*		114,603
	4,251	First Merchants Corp.		26,016
	1,821	First Mercury Financial Corp.		23,127
	14,959	First Midwest Bancorp, Inc.		155,574
	7,194	First Niagara Financial Group, Inc.		92,371
	15,088	First Place Financial Corp.		45,868
	5,469	First Potomac Realty Trust REIT		62,073
	26,192	First Regional Bancorp*		20,692
	29,987	First State Bancorp*		29,387
	677,644	Flagstar Bancorp, Inc.*		609,880
	5,392	Flushing Financial Corp.		60,552
	43,194	Forest City Enterprises, Inc., Class A*		376,652
	6,339	Forestar Group, Inc.*		93,564
	1,017	FPIC Insurance Group, Inc.*		34,405
	9,828	Franklin Street Properties Corp. REIT		105,946
	24,327	Frontier Financial Corp.*		10,332
	1,661	GAMCO Investors, Inc., Class A		70,078
	2,504	Getty Realty Corp. REIT		61,373
	15,740	GFI Group, Inc.		81,061
	2,550	Glacier Bancorp, Inc.		33,379
	4,683	Gladstone Capital Corp.		38,447
	5,074	Gladstone Investment Corp.		25,624
	92,583	Glimcher Realty Trust REIT		249,974
	4,049	Greene Bankshares, Inc.		16,763
	566	Greenhill & Co., Inc.		48,806
	3,515	Greenlight Capital Re Ltd., Class A (Cayman Islands)*		65,590
	112,989	Grubb & Ellis Co.*		168,354
	14,734	Guaranty Bancorp*		19,302
	3,120	Hallmark Financial Services, Inc.*		23,930
	2,871	Hancock Holding Co.		104,131
	26,234	Hanmi Financial Corp.*		40,138
	2,861	Harleysville Group, Inc.		89,635
	6,891	Harleysville National Corp.		39,692
	3,675	Hatteras Financial Corp. REIT		103,267
	2,901	Heartland Financial USA, Inc.		37,249
	8,510	Hercules Technology Growth Capital, Inc.		79,824
	19,379	Hersha Hospitality Trust REIT		49,610
	13,662	HFF, Inc., Class A*		78,557

See Notes to Financial Statements.

28

Schedule of Investments (Continued)

PowerShares FTSE RAFI US 1500 Small-Mid Portfolio

October 31, 2009 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	3,689	Hilltop Holdings, Inc.*	$	43,678
	916	Home BancShares, Inc.		19,813
	4,912	Home Properties, Inc. REIT		192,452
	11,168	Horace Mann Educators Corp.		138,818
	1,844	IBERIABANK Corp.		79,864
	3,354	Independence Holding Co.		18,615
	3,097	Independent Bank Corp./MA		65,873
	25,636	Independent Bank Corp./MI		30,250
	2,233	Infinity Property & Casualty Corp.		86,350
	14,459	Inland Real Estate Corp. REIT		124,058
	38,658	Integra Bank Corp.		33,246
	1,749	IntercontinentalExchange, Inc.*		175,232
	11,237	International Assets Holding Corp.*		202,154
	9,775	International Bancshares Corp.		145,159
	6,046	Intervest Bancshares Corp., Class A*		20,012
	5,430	Investment Technology Group, Inc.*		117,125
	4,966	Investors Bancorp, Inc.*		53,831
	6,239	Investors Real Estate Trust REIT*		52,220
	7,345	Jefferies Group, Inc.*		191,705
	912	Kansas City Life Insurance Co.		24,478
	1,917	KBW, Inc.*		53,676
	901	Kearny Financial Corp.		8,875
	7,267	Kilroy Realty Corp. REIT		200,715
	18,211	Kite Realty Group Trust REIT		67,563
	7,931	Knight Capital Group, Inc., Class A*		133,637
	17,707	Kohlberg Capital Corp.		94,024
	8,241	LaBranche & Co., Inc.*		22,745
	4,046	Lakeland Bancorp, Inc.		24,600
	1,159	Lakeland Financial Corp.		23,841
	27,644	LaSalle Hotel Properties REIT		474,371
	5,942	Lazard Ltd., Class A (Bermuda)		224,311
	47,053	Lexington Realty Trust REIT		197,152
	2,724	LTC Properties, Inc. REIT		64,695
	11,002	Macatawa Bank Corp.*		21,124
	56,918	Maguire Properties, Inc. REIT*		100,176
	8,552	Maiden Holdings Ltd. (Bermuda)		59,265
	5,381	MainSource Financial Group, Inc.		31,371
	5,570	Marlin Business Services Corp.*		37,375
	1,161	Maui Land & Pineapple Co., Inc.*		7,129
	8,358	Max Capital Group Ltd. (Bermuda)		172,593
	6,832	MB Financial, Inc.		122,156
	155,219	MCG Capital Corp.*		619,324
	6,220	Meadowbrook Insurance Group, Inc.		41,861
	3,617	Medallion Financial Corp.		28,393
	20,338	Medical Properties Trust, Inc. REIT		162,704
	22,109	MFA Financial, Inc. REIT		164,049
	3,106	Mid-America Apartment Communities, Inc. REIT		136,105
	17,139	Midwest Banc Holdings, Inc.*		8,569
	5,979	Mission West Properties, Inc. REIT		39,760

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	3,700	Monmouth Real Estate Investment Corp., Class A REIT	$	25,123
	4,333	MVC Capital, Inc.		39,777
	9,275	Nara Bancorp, Inc.		68,264
	658	NASB Financial, Inc.		16,187
	39,429	National Financial Partners Corp.		321,346
	3,373	National Health Investors, Inc. REIT		101,190
	469	National Interstate Corp.		8,494
	6,004	National Penn Bancshares, Inc.		33,742
	9,198	National Retail Properties, Inc. REIT		178,257
	1,047	Navigators Group, Inc. (The)*		55,564
	3,540	NBT Bancorp, Inc.		77,172
	12,133	Nelnet, Inc., Class A*		170,226
	9,263	NewAlliance Bancshares, Inc.		102,634
	424,075	Newcastle Investment Corp. REIT		814,224
	23,200	NewStar Financial, Inc.*		58,232
	4,205	NGP Capital Resources Co.		30,108
	2,490	Northfield Bancorp, Inc.		30,951
	34,546	NorthStar Realty Finance Corp. REIT*		121,947
	1,426	Northwest Bancorp, Inc.		31,372
	1,538	NYMAGIC, Inc.		21,978
	1,666	OceanFirst Financial Corp.		15,827
	11,660	Ocwen Financial Corp.*		127,444
	6,489	Old National Bancorp		67,291
	3,849	Old Second Bancorp, Inc.		20,592
	5,398	OMEGA Healthcare Investors, Inc. REIT		81,834
	8,435	One Liberty Properties, Inc. REIT		70,601
	3,315	optionsXpress Holdings, Inc.		51,813
	21,888	Oriental Financial Group, Inc.		233,107
	856	Oritani Financial Corp.		10,965
	16,231	Pacific Capital Bancorp		20,938
	4,609	PacWest Bancorp		78,261
	2,112	Park National Corp.		122,665
	7,471	Parkway Properties, Inc. REIT		131,863
	13,705	Patriot Capital Funding, Inc.		52,764
	44,172	Pennsylvania Real Estate Investment Trust REIT		323,781
	4,856	Penson Worldwide, Inc.*		47,346
	2,728	Peoples Bancorp, Inc.		29,299
	1,508	Pico Holdings, Inc.*		51,182
	3,088	Pinnacle Financial Partners, Inc.*		39,218
	4,487	Piper Jaffray Cos.*		208,152
	6,746	PMA Capital Corp., Class A*		32,246
	1,719	Portfolio Recovery Associates, Inc.*		79,315
	13,123	Post Properties, Inc. REIT		216,398
	7,796	Presidential Life Corp.		72,737
	4,380	PrivateBancorp, Inc., Class A		39,989
	2,659	ProAssurance Corp.*		133,695
	7,928	Prospect Capital Corp.		78,725
	2,768	Prosperity Bancshares, Inc.		99,067
	9,330	Provident Financial Services, Inc.		100,297

See Notes to Financial Statements.

29

Schedule of Investments (Continued)

PowerShares FTSE RAFI US 1500 Small-Mid Portfolio

October 31, 2009 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	4,102	Provident New York Bancorp	$	34,990
	1,790	PS Business Parks, Inc. REIT		87,656
	134,974	RAIT Financial Trust REIT*		249,702
	13,204	Ramco-Gershenson Properties Trust REIT		116,723
	3,757	Renasant Corp.		55,002
	1,791	Republic Bancorp, Inc., Class A		32,936
	17,871	Resource Capital Corp. REIT		86,496
	1,769	Rewards Network, Inc.*		19,034
	888	Riskmetrics Group, Inc.*		13,045
	1,851	RLI Corp.		92,550
	3,482	Royal Bancshares of Pennsylvania, Inc., Class A*		3,691
	2,656	S&T Bancorp, Inc.		41,832
	939	S.Y. Bancorp, Inc.		20,987
	2,220	Safety Insurance Group, Inc.		74,303
	3,520	Sanders Morris Harris Group, Inc.		20,451
	2,106	Sandy Spring Bancorp, Inc.		24,345
	1,984	Santander BanCorp*		22,816
	993	Saul Centers, Inc. REIT		30,545
	1,485	SCBT Financial Corp.		38,417
	3,530	SeaBright Insurance Holdings, Inc.*		39,465
	14,001	Seacoast Banking Corp. of Florida		20,861
	8,541	Selective Insurance Group, Inc.		130,848
	2,681	Signature Bank*		84,612
	1,355	Simmons First National Corp., Class A		39,647
	175,272	South Financial Group, Inc. (The)		140,218
	2,787	Southwest Bancorp, Inc.		27,424
	3,641	Sovran Self Storage, Inc. REIT		109,594
	5,151	St. Joe Co. (The)*		123,315
	6,453	State Auto Financial Corp.		104,926
	2,513	StellarOne Corp.		26,663
	3,326	Sterling Bancorp		22,384
	10,911	Sterling Bancshares, Inc.		60,774
	57,871	Sterling Financial Corp.*		46,297
	6,802	Stewart Information Services Corp.		60,810
	1,635	Stifel Financial Corp.*		84,955
	128,577	Strategic Hotels & Resorts, Inc. REIT		227,581
	818	Suffolk Bancorp		22,871
	6,534	Sun Bancorp, Inc.*		26,528
	5,161	Sun Communities, Inc. REIT		90,008
	96,485	Sunstone Hotel Investors, Inc. REIT		728,462
	11,723	Superior Bancorp*		24,853
	6,364	SVB Financial Group*		262,515
	3,560	SWS Group, Inc.		47,633
	2,471	Tanger Factory Outlet Centers, Inc. REIT		94,071
	3,946	Taubman Centers, Inc. REIT		120,392
	2,348	Taylor Capital Group, Inc.*		13,384
	27	Teton Advisors, Inc., Class B*		273
	5,027	Texas Capital Bancshares, Inc.*		73,243
	4,182	TFS Financial Corp.		48,762
	10,317	Thomas Weisel Partners Group, Inc.*		46,736

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	8,532	TICC Capital Corp.	$	41,977
	18,955	TierOne Corp.*		37,720
	559	Tompkins Financial Corp.		24,244
	1,437	Tower Group, Inc.		35,321
	1,898	TradeStation Group, Inc.*		14,653
	5,159	Tree.com, Inc.*		40,292
	97,770	Triad Guaranty, Inc.*		68,811
	1,928	TriCo Bancshares		28,187
	11,156	Trustco Bank Corp. NY		66,378
	7,555	Trustmark Corp.		143,167
	76,751	UCBH Holdings, Inc.*		75,216
	1,943	UMB Financial Corp.		77,273
	7,555	Umpqua Holdings Corp.		74,870
	2,351	Union Bankshares Corp.		28,964
	18,925	United America Indemnity Ltd., Class A*		132,664
	7,144	United Bankshares, Inc.		127,520
	28,905	United Community Banks, Inc.*		117,354
	58,693	United Community Financial Corp.*		88,040
	3,409	United Fire & Casualty Co.		59,589
	1,052	Universal Health Realty Income Trust REIT		33,401
	1,582	Univest Corp. of Pennsylvania		30,422
	187	Urstadt Biddle Properties, Inc. REIT		2,674
	2,608	Urstadt Biddle Properties, Inc., Class A REIT		38,520
	53,390	U-Store-It Trust REIT		304,323
	5,986	Virginia Commerce Bancorp*		24,064
	4,460	W.P. Carey & Co. LLC		123,542
	6,513	Waddell & Reed Financial, Inc., Class A		182,755
	6,345	Washington REIT		169,411
	2,149	Washington Trust Bancorp, Inc.		32,278
	3,387	Waterstone Financial, Inc.*		11,550
	3,881	WesBanco, Inc.		54,916
	3,778	West Bancorporation, Inc.		16,623
	19,602	West Coast Bancorp		45,281
	2,053	Westamerica Bancorp		98,133
	5,923	Western Alliance Bancorp*		25,765
	2,016	Westfield Financial, Inc.		16,229
	9,369	Whitney Holding Corp.		75,233
	4,155	Wilshire Bancorp, Inc.		29,251
	2,883	Winthrop Realty Trust REIT		25,832
	6,003	Wintrust Financial Corp.		169,345
	3,311	World Acceptance Corp.*		83,073
	1,105	WSFS Financial Corp.		30,498
	3,771	Zenith National Insurance Corp.		107,587
				31,952,407
		Health Care—6.1%
	287	Abraxis Bioscience, Inc.*		8,960
	21,090	Affymetrix, Inc.*		110,301
	1,726	Air Methods Corp.*		52,712
	3,067	Albany Molecular Research, Inc.*		24,965
	3,808	Align Technology, Inc.*		59,862

See Notes to Financial Statements.

30

Schedule of Investments (Continued)

PowerShares FTSE RAFI US 1500 Small-Mid Portfolio

October 31, 2009 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	2,147	Alkermes, Inc.*	$	17,112
	3,180	Alliance Healthcare Services, Inc.*		17,299
	1,779	Allscripts-Misys Healthcare Solutions, Inc.*		34,691
	1,721	Amedisys, Inc.*		68,479
	2,238	America Service Group, Inc.		29,363
	3,550	American Dental Partners, Inc.*		42,209
	3,573	American Medical Systems Holdings, Inc.*		55,096
	9,150	AMN Healthcare Services, Inc.*		76,128
	4,637	AmSurg Corp.*		97,702
	955	Analogic Corp.		35,660
	2,291	Angiodynamics, Inc.*		34,594
	20,995	Animal Health International, Inc.*		51,018
	1,312	Assisted Living Concepts, Inc., Class A*		27,185
	841	Bio-Reference Labs, Inc.*		27,190
	31,145	BioScrip, Inc.*		234,833
	3,564	Bruker Corp.*		38,634
	42,130	Cambrex Corp.*		252,780
	1,398	Cantel Medical Corp.*		22,452
	3,200	Capital Senior Living Corp.*		16,928
	5,844	Cardiac Science Corp.*		20,454
	2,993	Catalyst Health Solutions, Inc.*		93,890
	4,012	Celera Corp.*		24,834
	2,109	Celgene Corp.*		107,664
	6,317	Centene Corp.*		112,632
	1,516	Chemed Corp.		68,705
	5,501	CONMED Corp.*		116,566
	5,256	Cooper Cos., Inc. (The)		147,221
	947	Corvel Corp.*		26,989
	7,995	Cross Country Healthcare, Inc.*		66,039
	1,651	Cubist Pharmaceuticals, Inc.*		27,968
	828	Dionex Corp.*		56,205
	4,369	Eclipsys Corp.*		81,919
	2,424	Edwards Lifesciences Corp.*		186,503
	8,170	Emergency Medical Services Corp., Class A*		392,323
	241	Emergent Biosolutions, Inc.*		3,475
	5,932	Emeritus Corp.*		110,691
	914	Ensign Group, Inc. (The)		13,509
	3,491	Enzon Pharmaceuticals, Inc.*		29,289
	6,251	ev3, Inc.*		73,637
	25,681	Five Star Quality Care, Inc.*		88,599
	1,633	Gen-Probe, Inc.*		68,129
	3,928	Gentiva Health Services, Inc.*		94,272
	2,021	Greatbatch, Inc.*		39,753
	1,240	Haemonetics Corp.*		63,860
	2,910	Hanger Orthopedic Group, Inc.*		40,274
	12,505	Healthsouth Corp.*		182,698
	9,908	Healthspring, Inc.*		141,982
	28,770	HealthTronics, Inc.*		65,883
	6,742	Healthways, Inc.*		108,411
	636	ICU Medical, Inc.*		22,260
	2,541	IDEXX Laboratories, Inc.*		129,896

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	1,111	Illumina, Inc.*	$	35,663
	1,851	Immucor, Inc.*		33,096
	1,222	Integra LifeSciences Holdings Corp.*		37,320
	1,339	Intuitive Surgical, Inc.*		329,863
	5,475	Invacare Corp.		122,804
	6,549	inVentiv Health, Inc.*		111,202
	1,468	Kendle International, Inc.*		24,780
	93,654	KV Pharmaceutical Co., Class A*		355,885
	505	Landauer, Inc.		26,154
	8,642	LCA-Vision, Inc.*		38,889
	801	LHC Group, Inc.*		22,356
	3,073	Martek Biosciences Corp.*		55,191
	1,074	Masimo Corp.*		28,536
	1,344	MedAssets, Inc.*		29,487
	6,289	MedCath Corp.*		51,633
	2,893	Medical Action Industries, Inc.*		31,649
	1,357	Medicines Co. (The)*		9,757
	4,905	Medicis Pharmaceutical Corp., Class A		103,839
	4,171	MEDNAX, Inc.*		216,558
	919	Meridian Bioscience, Inc.		20,393
	2,069	Merit Medical Systems, Inc.*		35,132
	2,188	Molina Healthcare, Inc.*		40,959
	1,564	MWI Veterinary Supply, Inc.*		55,366
	686	Myriad Genetics, Inc.*		16,656
	172	Myriad Pharmaceuticals, Inc.*		949
	824	National Healthcare Corp.		29,639
	2,507	Odyssey HealthCare, Inc.*		34,948
	3,289	Orthofix International NV (Netherlands)*		105,248
	5,359	Par Pharmaceutical Cos., Inc.*		112,378
	8,416	Parexel International Corp.*		105,368
	3,025	PDI, Inc.*		15,186
	6,891	PDL BioPharma, Inc.		57,953
	8,207	PerkinElmer, Inc.		152,732
	5,873	Perrigo Co.		218,417
	4,445	PharMerica Corp.*		68,586
	1,381	Phase Forward, Inc.*		18,105
	6,858	Providence Service Corp. (The)*		85,451
	6,536	PSS World Medical, Inc.*		132,158
	4,562	Psychiatric Solutions, Inc.*		94,160
	604	Quality Systems, Inc.		36,856
	3,099	RehabCare Group, Inc.*		58,106
	5,128	Res-Care, Inc.*		61,690
	2,500	ResMed, Inc.*		123,025
	3,540	Salix Pharmaceuticals Ltd.*		65,101
	3,217	Sirona Dental Systems, Inc.*		86,569
	7,728	Skilled Healthcare Group, Inc., Class A*		62,133
	1,009	SonoSite, Inc.*		25,013
	4,588	STERIS Corp.		134,245
	7,108	Sun Healthcare Group, Inc.*		64,541
	1,040	SurModics, Inc.*		26,634
	4,554	Symmetry Medical, Inc.*		36,295

See Notes to Financial Statements.

31

Schedule of Investments (Continued)

PowerShares FTSE RAFI US 1500 Small-Mid Portfolio

October 31, 2009 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	1,276	Techne Corp.	$	79,763
	1,634	Thoratec Corp.*		42,909
	9,379	TomoTherapy, Inc.*		31,138
	6,944	Triple-S Management Corp., Class B*		115,965
	905	United Therapeutics Corp.*		38,499
	4,973	Valeant Pharmaceuticals International*		146,206
	3,934	Varian, Inc.*		201,421
	5,120	VCA Antech, Inc.*		121,958
	11,166	ViroPharma, Inc.*		84,192
	6,873	WellCare Health Plans, Inc.*		179,591
	2,456	West Pharmaceutical Services, Inc.		96,938
	1,604	Wright Medical Group, Inc.*		26,065
	2,420	Zoll Medical Corp.*		46,996
				9,298,978
		Industrials—16.3%
	5,649	A.O. Smith Corp.		223,870
	895	AAON, Inc.		16,119
	6,968	AAR Corp.*		136,642
	8,795	ABM Industries, Inc.		165,170
	115,211	ACCO Brands Corp.*		698,179
	3,632	Aceto Corp.		20,121
	10,804	Actuant Corp., Class A		168,650
	3,145	Administaff, Inc.		78,059
	1,498	Advisory Board Co. (The)*		36,911
	532	Aerovironment, Inc.*		14,183
	412,438	Air Transport Services Group, Inc.*		1,068,214
	27,775	AirTran Holdings, Inc.*		117,488
	1,728	Alamo Group, Inc.		23,674
	10,530	Albany International Corp., Class A		175,430
	407	Allegiant Travel Co.*		15,348
	6,664	Altra Holdings, Inc.*		58,443
	1,411	American Commercial Lines, Inc.*		30,266
	2,392	American Railcar Industries, Inc.		23,920
	11,734	American Reprographics Co.*		70,404
	341	American Science & Engineering, Inc.		22,547
	2,359	American Woodmark Corp.		46,402
	613	Ameron International Corp.		36,155
	1,658	Ampco-Pittsburgh Corp.		44,600
	398	Amrep Corp.*		4,844
	4,336	Apogee Enterprises, Inc.		57,409
	6,552	Applied Industrial Technologies, Inc.		132,547
	1,536	Argon ST, Inc.*		28,570
	28,924	Aries Maritime Transport Ltd. (Bermuda)*		28,635
	6,639	Arkansas Best Corp.		171,419
	2,608	Astec Industries, Inc.*		59,984
	4,463	ATC Technology Corp.*		93,277
	8,773	Atlas Air Worldwide Holdings, Inc.*		230,642
	744	Badger Meter, Inc.		27,729
	8,083	Baldor Electric Co.		208,946
	7,939	Barnes Group, Inc.		125,833

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	8,397	Beacon Roofing Supply, Inc.*	$	120,581
	12,045	Belden, Inc.		276,433
	6,034	Blount International, Inc.*		54,547
	42,949	Bowne & Co., Inc.		280,457
	7,118	Brady Corp., Class A		192,755
	6,293	Bucyrus International, Inc.		279,535
	23,672	Builders FirstSource, Inc.*		92,084
	5,308	CAI International, Inc.*		39,810
	2,565	Cascade Corp.		63,715
	18,117	Casella Waste Systems, Inc., Class A*		50,546
	6,754	CBIZ, Inc.*		47,548
	7,099	CDI Corp.		86,466
	6,351	Celadon Group, Inc.*		61,986
	33,312	Cenveo, Inc.*		235,849
	4,403	Ceradyne, Inc.*		70,976
	8,029	Chart Industries, Inc.*		158,733
	21,056	China Technology Development Group Corp. (China)*		91,172
	1,462	CIRCOR International, Inc.		39,840
	3,471	CLARCOR, Inc.		102,152
	1,318	Clean Harbors, Inc.*		74,401
	11,312	Coleman Cable, Inc.*		39,253
	3,714	Colfax Corp.*		40,408
	5,929	Columbus McKinnon Corp.*		98,125
	4,837	Comfort Systems USA, Inc.		52,723
	83,700	Commercial Vehicle Group, Inc.*		395,901
	1,435	Compx International, Inc.		10,088
	6,105	COMSYS IT Partners, Inc.*		41,819
	5,609	Consolidated Graphics, Inc.*		112,517
	2,659	Copa Holdings SA, Class A (Panama)		112,290
	3,196	Copart, Inc.*		102,815
	2,287	Cornell Cos., Inc.*		52,235
	3,850	Corporate Executive Board Co. (The)		92,439
	1,061	CoStar Group, Inc.*		41,188
	2,081	Courier Corp.		30,861
	18,335	Covenant Transport Group, Inc., Class A*		92,408
	1,700	CRA International, Inc.*		42,075
	1,555	Cubic Corp.		53,974
	4,190	Curtiss-Wright Corp.		124,946
	9,465	Deswell Industries, Inc. (Hong Kong)		40,983
	9,698	Diamond Management & Technology Consultants, Inc.		57,412
	6,433	Diana Shipping, Inc. (Greece)		83,114
	33,163	DryShips, Inc. (Greece)		200,305
	2,368	Ducommun, Inc.		40,303
	1,249	DXP Enterprises, Inc.*		14,339
	19,370	Dycom Industries, Inc.*		191,376
	2,103	Dynamex, Inc.*		38,969
	5,649	DynCorp International, Inc., Class A*		96,033
	34,076	Eagle Bulk Shipping, Inc.		161,520
	3,069	Encore Wire Corp.		63,682

See Notes to Financial Statements.

32

Schedule of Investments (Continued)

PowerShares FTSE RAFI US 1500 Small-Mid Portfolio

October 31, 2009 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	2,002	Energy Conversion Devices, Inc.*	$	21,562
	20,581	EnergySolutions, Inc.		171,646
	11,013	EnerSys*		243,387
	6,390	Ennis, Inc.		96,809
	5,158	EnPro Industries, Inc.*		116,468
	1,961	ESCO Technologies, Inc.*		77,028
	5,020	Esterline Technologies Corp.*		211,392
	22,474	Evergreen Solar, Inc.*		32,587
	43,153	Excel Maritime Carriers Ltd. (Liberia)		243,383
	879	Exponent, Inc.*		22,863
	13,073	Federal Signal Corp.		80,268
	7,354	First Advantage Corp., Class A*		129,430
	401	First Solar, Inc.*		48,894
	4,392	Force Protection, Inc.*		19,325
	2,121	Forward Air Corp.		45,262
	4,884	Franklin Covey Co.*		25,494
	1,741	Franklin Electric Co., Inc.		47,494
	53,954	FreeSeas, Inc. (Marshall Islands)		72,298
	2,751	FreightCar America, Inc.		64,869
	3,127	FTI Consulting, Inc.*		127,613
	3,896	G&K Services, Inc., Class A		86,296
	7,137	Genco Shipping & Trading Ltd.*		141,955
	3,398	Genesee & Wyoming, Inc., Class A*		98,576
	6,282	Geo Group, Inc. (The)*		132,864
	1,221	GeoEye, Inc.*		30,977
	9,195	Gibraltar Industries, Inc.		99,490
	1,320	Gorman-Rupp Co. (The)		32,591
	5,440	Graco, Inc.		149,818
	12,831	GrafTech International Ltd.*		173,219
	14,773	Great Lakes Dredge & Dock Corp.		90,558
	16,308	Greenbrier Cos., Inc.		144,815
	14,352	Griffon Corp.*		125,867
	5,784	H&E Equipment Services, Inc.*		61,310
	7,491	Hardinge, Inc.		39,328
	9,947	Hawaiian Holdings, Inc.*		70,524
	2,284	Healthcare Services Group, Inc.		45,109
	5,289	Heartland Express, Inc.		71,930
	522	HEICO Corp.		19,852
	1,396	HEICO Corp., Class A		43,081
	2,389	Heidrick & Struggles International, Inc.		65,363
	2,232	Herley Industries, Inc.*		25,244
	9,835	Herman Miller, Inc.		151,951
	17,618	Hexcel Corp.*		193,798
	15,445	Horizon Lines, Inc., Class A		81,086
	3,217	Houston Wire & Cable Co.		38,894
	4,283	Hub Group, Inc., Class A*		106,475
	53,094	Hudson Highland Group, Inc.*		172,025
	1,628	Hurco Cos., Inc.*		25,885
	622	Huron Consulting Group, Inc.*		14,430
	498	ICF International, Inc.*		14,268
	6,577	ICT Group, Inc.*		104,245

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	5,138	IDEX Corp.	$	146,073
	1,771	IHS, Inc., Class A*		91,667
	2,113	II-VI, Inc.*		55,931
	4,242	Insituform Technologies, Inc., Class A*		89,930
	4,729	Insteel Industries, Inc.		52,586
	6,634	Integrated Electrical Services, Inc.*		43,652
	27,073	Interface, Inc., Class A		210,086
	7,429	Interline Brands, Inc.*		108,463
	2,028	Intersections, Inc.*		11,560
	6,677	John Bean Technologies Corp.		109,636
	3,225	Kadant, Inc.*		41,570
	5,286	Kaman Corp.		109,209
	2,296	Kaydon Corp.		80,337
	9,018	Kforce, Inc.*		105,781
	4,255	KHD Humboldt Wedag International Ltd. (Canada)*		38,976
	14,412	Kimball International, Inc., Class B		108,090
	3,953	Kirby Corp.*		133,611
	4,012	Knight Transportation, Inc.		64,352
	11,013	Knoll, Inc.		107,927
	7,403	Korn/Ferry International*		118,152
	4,593	Ladish Co., Inc.*		59,525
	3,574	Landstar System, Inc.		125,948
	1,365	Lawson Products, Inc.		21,226
	3,624	Layne Christensen Co.*		93,862
	1,427	LB Foster Co., Class A*		40,070
	12,342	LECG Corp.*		42,580
	994	Lindsay Corp.		32,633
	2,721	LS Starrett Co., Class A		27,890
	7,946	LSI Industries, Inc.		55,543
	10,128	Lydall, Inc.*		50,640
	5,038	M&F Worldwide Corp.*		107,209
	2,284	Marten Transport Ltd.*		40,061
	5,385	MasTec, Inc.*		63,543
	2,961	McGrath Rentcorp		58,480
	1,303,271	Mesa Air Group, Inc.*		216,343
	8,194	Metalico, Inc.*		33,104
	1,075	Michael Baker Corp.*		38,377
	1,517	Middleby Corp. (The)*		68,735
	4,249	Miller Industries, Inc.*		42,702
	3,736	Mine Safety Appliances Co.		95,231
	5,778	Mobile Mini, Inc.*		83,781
	13,783	Monster Worldwide, Inc.*		200,129
	5,908	NACCO Industries, Inc., Class A		352,117
	4,846	Navigant Consulting, Inc.*		69,007
	24,680	NCI Building Systems, Inc.*		48,373
	20,851	NN, Inc.		92,787
	2,863	Nordson Corp.		151,081
	1,273	Northwest Pipe Co.*		38,317
	5,361	Old Dominion Freight Line, Inc.*		139,332
	10,992	On Assignment, Inc.*		66,392

See Notes to Financial Statements.

33

Schedule of Investments (Continued)

PowerShares FTSE RAFI US 1500 Small-Mid Portfolio

October 31, 2009 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	4,818	Orbital Sciences Corp.*	$	62,056
	2,487	Orion Marine Group, Inc.*		47,352
	5,756	Otter Tail Corp.		133,885
	2,419	P.A.M. Transportation Services, Inc.*		18,771
	25,231	Pacer International, Inc.		72,161
	13,202	Park-Ohio Holdings Corp.*		82,116
	12,588	PGT, Inc.*		31,092
	3,350	Pike Electric Corp.*		42,043
	31,814	Pinnacle Airlines Corp.*		191,838
	10,436	Polypore International, Inc.*		114,379
	832	Powell Industries, Inc.*		30,601
	32,066	Power-One, Inc.*		88,182
	332	Preformed Line Products Co.		12,782
	9,986	Quality Distribution, Inc.*		37,348
	4,713	Quanex Building Products Corp.		70,082
	1,288	Raven Industries, Inc.		31,814
	2,342	RBC Bearings, Inc.*		50,376
	4,300	Regal-Beloit Corp.		201,584
	11,578	Republic Airways Holdings, Inc.*		92,740
	6,988	Resources Connection, Inc.*		120,683
	2,568	Robbins & Myers, Inc.		59,578
	2,193	Rollins, Inc.		39,649
	2,786	Rush Enterprises, Inc., Class B*		25,492
	6,773	Rush Enterprises, Inc., Class A*		73,961
	7,227	Saia, Inc.*		105,948
	6,053	Sauer-Danfoss, Inc.		43,582
	2,546	Schawk, Inc.		25,002
	6,407	School Specialty, Inc.*		142,556
	4,417	Simpson Manufacturing Co., Inc.		103,314
	90,957	Spherion Corp.*		450,237
	608	Standard Parking Corp.*		10,701
	9,110	Standard Register Co. (The)		43,455
	4,109	Standex International Corp.		72,236
	526	Stanley, Inc.*		14,859
	2,314	Stericycle, Inc.*		121,184
	1,421	Sterling Construction Co., Inc.*		22,921
	597	SunPower Corp., Class A*		14,812
	462	SunPower Corp., Class B*		10,007
	2,544	Sykes Enterprises, Inc.*		60,395
	14,285	Sypris Solutions, Inc.		44,284
	5,779	TAL International Group, Inc.		68,539
	5,183	TBS International Ltd., Class A (Bermuda)*		42,656
	1,851	Team, Inc.*		30,042
	18,555	Tecumseh Products Co., Class A*		193,900
	5,288	Teledyne Technologies, Inc.*		180,638
	4,272	Tennant Co.		113,892
	4,673	Tetra Tech, Inc.*		120,236
	4,704	Textainer Group Holdings Ltd.		70,842
	17,052	Thermadyne Holdings Corp.*		102,994
	6,818	Titan International, Inc.		57,271
	1,614	Titan Machinery, Inc.*		17,318

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	5,425	Toro Co. (The)	$	200,834
	1,430	TransDigm Group, Inc.*		56,027
	4,065	Tredegar Corp.		55,406
	1,150	Trex Co., Inc.*		18,296
	34,520	Trimas Corp.*		155,340
	2,009	Triumph Group, Inc.		94,041
	11,088	TrueBlue, Inc.*		134,165
	6,209	Tutor Perini Corp.*		109,589
	4,216	Twin Disc, Inc.		39,588
	9,150	Ultrapetrol Bahamas Ltd.*		44,835
	4,010	Universal Forest Products, Inc.		143,077
	2,857	Universal Truckload Services, Inc.		46,969
	1,731	USA Truck, Inc.*		19,439
	1,451	Valmont Industries, Inc.		104,864
	5,367	Viad Corp.		93,923
	3,495	Vicor Corp.		23,836
	28,613	Wabash National Corp.		56,081
	2,878	Wabtec Corp.		105,795
	5,094	Waste Connections, Inc.*		160,104
	7,790	Waste Services, Inc.*		51,102
	3,242	Watsco, Inc.		166,055
	2,342	Watson Wyatt Worldwide, Inc., Class A		102,064
	5,726	Watts Water Technologies, Inc., Class A		161,759
	7,282	WCA Waste Corp.*		29,201
	2,273	Willis Lease Finance Corp.*		28,935
	5,150	Woodward Governor Co.		121,076
	38,180	Xerium Technologies, Inc.*		37,035
				24,710,642
		Information Technology—15.3%
	35,788	3Com Corp.*		183,950
	2,882	Actel Corp.*		34,353
	14,283	Acxiom Corp.		163,969
	16,239	Adaptec, Inc.*		51,802
	45,094	ADC Telecommunications, Inc.*		292,660
	4,998	ADTRAN, Inc.		115,154
	5,285	Advanced Energy Industries, Inc.*		64,530
	693	Advent Software, Inc.*		26,486
	15,759	Agilysys, Inc.		74,225
	1,979	Airvana, Inc.*		12,092
	6,730	Akamai Technologies, Inc.*		148,060
	1,930	Amdocs Ltd. (Guernsey)*		48,636
	3,129	ANSYS, Inc.*		126,975
	11,146	Applied Micro Circuits Corp.*		87,162
	3,965	Ariba, Inc.*		46,866
	16,171	Arris Group, Inc.*		165,914
	2,289	Atheros Communications, Inc.*		56,355
	3,602	ATMI, Inc.*		54,570
	4,896	Avid Technology, Inc.*		61,836
	7,340	Avocent Corp.*		182,546
	154,052	Axcelis Technologies, Inc.*		146,349

See Notes to Financial Statements.

34

Schedule of Investments (Continued)

PowerShares FTSE RAFI US 1500 Small-Mid Portfolio

October 31, 2009 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	2,607	BEL Fuse, Inc., Class B	$	47,187
	3,399	Black Box Corp.		90,107
	771	Blackbaud, Inc.		17,108
	621	Blackboard, Inc.*		22,027
	2,155	Blue Coat Systems, Inc.*		48,013
	15,229	Brooks Automation, Inc.*		104,776
	2,613	Cabot Microelectronics Corp.*		83,564
	32,674	CDC Corp., Class A (Hong Kong)*		76,130
	9,939	Checkpoint Systems, Inc.*		134,872
	308,610	ChipMOS TECHNOLOGIES Bermuda Ltd. (Taiwan)*		231,458
	33,316	Ciber, Inc.*		107,278
	14,319	Ciena Corp.*		167,962
	6,482	Cirrus Logic, Inc.*		31,373
	1,257	Cogent, Inc.*		12,130
	4,155	Cognex Corp.		66,854
	4,745	Coherent, Inc.*		119,242
	3,070	Cohu, Inc.		34,937
	16,435	Commtouch Software Ltd. (Israel)*		51,770
	21,806	Compuware Corp.*		153,950
	1,764	Comtech Telecommunications Corp.*		56,660
	1,929	Concur Technologies, Inc.*		68,750
	49,649	Conexant Systems, Inc.*		136,038
	2,268	CPI International, Inc.*		22,453
	5,793	Cree, Inc.*		243,885
	3,888	CSG Systems International, Inc.*		63,530
	13,797	CTS Corp.		123,621
	3,546	Cymer, Inc.*		121,415
	19,144	Cypress Semiconductor Corp.*		161,384
	3,912	Daktronics, Inc.		29,418
	2,840	DealerTrack Holdings, Inc.*		46,803
	3,421	Digi International, Inc.*		27,197
	1,190	Digital River, Inc.*		27,168
	4,290	Diodes, Inc.*		70,270
	4,146	Dolby Laboratories, Inc., Class A*		173,883
	5,232	DSP Group, Inc.*		30,241
	2,586	Dynamics Research Corp.*		33,127
	16,575	EarthLink, Inc.		134,258
	5,941	EchoStar Corp., Class A*		107,889
	2,857	Electro Rent Corp.		30,598
	7,204	Electro Scientific Industries, Inc.*		78,812
	3,829	Electronics for Imaging, Inc.*		44,646
	1,486	EMS Technologies, Inc*		25,901
	14,699	Emulex Corp.*		148,460
	140,316	Entegris, Inc.*		527,588
	13,522	Epicor Software Corp.*		104,390
	1,939	EPIQ Systems, Inc.*		24,451
	1,565	Equinix, Inc.*		133,526
	7,757	Euronet Worldwide, Inc.*		183,453
	4,842	Exar Corp.*		33,410
	706	ExlService Holdings, Inc.*		9,609

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	21,606	Extreme Networks, Inc.*	$	42,996
	3,823	F5 Networks, Inc.*		171,614
	1,370	FactSet Research Systems, Inc.		87,749
	7,623	Fair Isaac Corp.		154,976
	1,679	FARO Technologies, Inc.*		25,957
	3,987	FEI Co.*		94,930
	10,773	Finisar Corp.*		80,259
	4,685	FLIR Systems, Inc.*		130,290
	4,354	FormFactor, Inc.*		73,974
	1,153	Forrester Research, Inc.*		29,205
	3,303	Gartner, Inc.*		61,502
	6,373	Genpact Ltd.*		75,902
	16,398	Gerber Scientific, Inc.*		75,759
	10,599	Global Cash Access Holdings, Inc.*		67,092
	3,798	Global Payments, Inc.		186,976
	2,558	GSI Commerce, Inc.*		48,525
	43,476	GSI Group, Inc. (Canada)*		35,281
	43,016	Harris Stratex Networks, Inc., Class A*		271,001
	3,537	Heartland Payment Systems, Inc.		43,470
	699	Hittite Microwave Corp.*		25,723
	2,114	Hughes Communications, Inc.*		49,298
	30,943	Hutchinson Technology, Inc.*		180,088
	17,713	Hypercom Corp.*		50,482
	3,989	iGate Corp.		35,223
	15,599	Imation Corp.		137,583
	13,175	infoGROUP, Inc.*		86,428
	1,730	Informatica Corp.*		36,728
	30,878	Integrated Device Technology, Inc.*		181,563
	1,263	InterDigital, Inc.*		25,967
	5,667	Intermec, Inc.*		69,817
	9,962	Internap Network Services Corp.*		31,878
	4,290	Internet Brands, Inc., Class A*		31,918
	11,015	Intersil Corp., Class A		138,238
	5,260	Intevac, Inc.*		53,652
	23,728	iPass, Inc.*		30,846
	864	IPG Photonics Corp.*		11,802
	2,332	Itron, Inc.*		140,013
	2,465	Ixia*		16,392
	2,322	IXYS Corp.*		15,557
	1,962	j2 Global Communications, Inc.*		40,123
	5,638	Jack Henry & Associates, Inc.		130,069
	4,397	JDA Software Group, Inc.*		87,236
	5,307	Kenexa Corp.*		66,868
	33,720	Kulicke & Soffa Industries, Inc.*		156,798
	16,644	L-1 Identity Solutions, Inc.*		98,366
	14,337	Lawson Software, Inc.*		90,466
	18,529	Lionbridge Technologies, Inc.*		38,726
	4,671	Littelfuse, Inc.*		128,733
	5,717	LoJack Corp.*		24,126
	5,181	Loral Space & Communications, Inc.*		136,882
	1,534	Manhattan Associates, Inc.*		35,205

See Notes to Financial Statements.

35

Schedule of Investments (Continued)

PowerShares FTSE RAFI US 1500 Small-Mid Portfolio

October 31, 2009 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	1,776	ManTech International Corp., Class A*	$	77,895
	5,645	Marchex, Inc., Class B		25,572
	46,160	Mattson Technology, Inc.*		97,859
	1,301	MAXIMUS, Inc.		60,184
	5,585	Measurement Specialties, Inc.*		43,060
	20,765	Mentor Graphics Corp.*		151,585
	3,333	Mercury Computer Systems, Inc.*		35,663
	79,888	Merix Corp.*		127,022
	12,532	Methode Electronics, Inc., Class A		90,857
	2,027	Micrel, Inc.		15,142
	5,525	MICROS Systems, Inc.*		148,733
	7,037	Microsemi Corp.*		93,662
	954	MicroStrategy, Inc., Class A*		83,256
	7,926	MKS Instruments, Inc.*		123,963
	37,839	ModusLink Global Solutions, Inc.*		311,037
	1,490	MTS Systems Corp.		39,485
	1,401	Multi-Fineline Electronix, Inc.*		38,177
	18,313	Nam Tai Electronics, Inc. (Hong Kong)		101,637
	2,099	National Instruments Corp.		56,043
	9,747	Ness Technologies, Inc.*		64,233
	2,619	Net 1 UEPS Technologies, Inc.*		45,806
	3,448	NETGEAR, Inc.*		62,857
	2,838	NeuStar, Inc., Class A*		65,558
	10,839	Newport Corp.*		80,642
	1,353	Novatel Wireless, Inc.*		12,069
	37,651	Novell, Inc.*		153,993
	16,311	Nu Horizons Electronics Corp.*		63,450
	10,317	Nuance Communications, Inc.*		135,256
	9,487	OmniVision Technologies, Inc.*		116,311
	32,159	ON Semiconductor Corp.*		215,144
	118,044	Openwave Systems, Inc.*		267,960
	11,724	Opnext, Inc.*		28,841
	2,330	OSI Systems, Inc.*		45,738
	12,382	Palm, Inc.*		143,755
	12,394	Parametric Technology Corp.*		184,795
	2,837	Park Electrochemical Corp.		63,776
	6,377	PC Connection, Inc.*		37,497
	10,218	PC Mall, Inc.*		72,446
	3,450	Pericom Semiconductor Corp.*		32,465
	78,380	Photronics, Inc.*		327,628
	8,013	Plantronics, Inc.		193,193
	7,596	Plexus Corp.*		192,179
	4,960	PMC - Sierra, Inc.*		42,259
	8,418	Polycom, Inc.*		180,734
	1,456	Power Integrations, Inc.		45,427
	138,105	Powerwave Technologies, Inc.*		172,631
	3,861	Progress Software Corp.*		89,189
	10,248	QLogic Corp.*		179,750
	4,652	Quest Software, Inc.*		78,014
	2,660	Rackspace Hosting, Inc.*		44,555
	6,904	Radiant Systems, Inc.*		67,935

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	4,406	RadiSys Corp.*	$	37,495
	21,428	RealNetworks, Inc.*		76,498
	4,272	Red Hat, Inc.*		110,260
	1,512	Renaissance Learning, Inc.		13,729
	133,345	RF Micro Devices, Inc.*		530,713
	8,950	Richardson Electronics Ltd.		50,568
	4,031	Rofin-Sinar Technologies, Inc.*		86,465
	1,700	Rogers Corp.*		44,115
	3,305	Rovi Corp.*		91,053
	9,399	Rudolph Technologies, Inc.*		59,590
	3,989	S1 Corp.*		23,934
	1,324	Salesforce.com, Inc.*		75,137
	6,758	Sapient Corp.*		55,010
	4,079	SAVVIS, Inc.*		60,328
	6,299	ScanSource, Inc.*		159,932
	6,848	Semitool, Inc.*		48,347
	1,883	Semtech Corp.*		29,130
	1,976	Sigma Designs, Inc.*		23,732
	7,545	Silicon Graphics International Corp.*		44,968
	14,790	Silicon Image, Inc.*		31,207
	2,374	Silicon Laboratories, Inc.*		99,471
	26,231	Silicon Storage Technology, Inc.*		53,249
	870	SINA Corp. (China)*		32,529
	16,314	Skyworks Solutions, Inc.*		170,155
	33,582	SMART Modular Technologies (WWH), Inc.*		136,343
	3,194	Solera Holdings, Inc.		102,911
	5,930	SonicWALL, Inc.*		47,084
	32,332	Sonus Networks, Inc.*		62,077
	5,903	SRA International, Inc., Class A*		110,740
	2,915	Standard Microsystems Corp.*		56,143
	7,036	StarTek, Inc.*		40,809
	2,832	STEC, Inc.*		60,378
	4,886	Super Micro Computer, Inc.*		39,381
	2,264	Switch & Data Facilities Co., Inc.*		37,877
	2,851	Sybase, Inc.*		112,786
	17,266	Sycamore Networks, Inc.*		49,208
	7,119	Symmetricom, Inc.*		34,100
	6,365	Symyx Technologies, Inc.*		37,363
	1,153	Synaptics, Inc.*		25,943
	764	Syntel, Inc.		27,374
	17,270	Take-Two Interactive Software, Inc.*		189,452
	54,030	Technitrol, Inc.		420,894
	4,157	Tekelec*		62,438
	7,444	TeleTech Holdings, Inc.*		133,173
	2,600	Tessco Technologies, Inc.		44,070
	3,898	Tessera Technologies, Inc.*		86,185
	47,383	THQ, Inc.*		247,813
	17,374	TIBCO Software, Inc.*		152,023
	15,360	TNS, Inc.*		434,074
	19,255	Trident Microsystems, Inc.*		36,199

See Notes to Financial Statements.

36

Schedule of Investments (Continued)

PowerShares FTSE RAFI US 1500 Small-Mid Portfolio

October 31, 2009 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	8,994	Trimble Navigation Ltd.*	$	188,604
	22,871	TriQuint Semiconductor, Inc.*		123,275
	9,727	TTM Technologies, Inc.*		98,924
	1,147	Tyler Technologies, Inc.*		21,816
	17,234	Ultra Clean Holdings, Inc.*		94,959
	14,534	United Online, Inc.		116,272
	134,925	Utstarcom, Inc.*		244,214
	11,852	ValueClick, Inc.*		116,624
	4,875	Varian Semiconductor Equipment Associates, Inc.*		138,401
	6,670	Veeco Instruments, Inc.*		162,415
	8,507	VeriFone Holdings, Inc.*		113,143
	10,484	Verigy Ltd. (Singapore)*		103,163
	2,861	ViaSat, Inc.*		83,398
	805	VistaPrint NV (Netherlands)*		41,095
	6,130	WebMD Health Corp.*		208,788
	19,994	WebMediaBrands, Inc.*		12,596
	2,004	Websense, Inc.*		32,184
	64,493	Westell Technologies, Inc., Class A*		72,232
	5,718	X-Rite, Inc.*		11,436
	6,162	Xyratex Ltd. (Bermuda)*		64,393
	6,214	Zebra Technologies Corp., Class A*		155,350
	10,491	Zoran Corp.*		93,055
	4,863	Zygo Corp.*		33,603
				23,259,625
		Materials—6.0%
	6,509	A. Schulman, Inc.		113,061
	6,191	A.M. Castle & Co.		69,773
	2,326	AEP Industries, Inc.*		81,131
	2,481	AMCOL International Corp.		64,605
	5,007	Arch Chemicals, Inc.		138,644
	4,644	Brush Engineered Materials, Inc.*		85,682
	25,544	Buckeye Technologies, Inc.*		228,874
	7,998	Bway Holding Co.*		142,124
	1,567	Calgon Carbon Corp.*		24,821
	10,075	Carpenter Technology Corp.		211,877
	44,482	Century Aluminum Co.*		385,659
	8,436	Clearwater Paper Corp.*		381,898
	1,112	Compass Minerals International, Inc.		69,300
	726	Deltic Timber Corp.		30,855
	5,661	Eagle Materials, Inc.		140,676
	84,314	Ferro Corp.		516,845
	13,640	Georgia Gulf Corp.*		196,007
	11,401	Glatfelter		120,509
	6,709	H.B. Fuller Co.		128,209
	4,342	Haynes International, Inc.*		122,965
	84,024	Headwaters, Inc.*		346,179
	31,167	Hecla Mining Co.*		128,096
	13,263	Horsehead Holding Corp.*		126,396
	15,751	ICO, Inc.*		60,484

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	3,064	Innophos Holdings, Inc.	$	59,288
	11,781	Innospec, Inc.		139,251
	3,422	Kaiser Aluminum Corp.		136,709
	12,105	KapStone Paper and Packaging Corp.*		84,009
	4,296	Koppers Holdings, Inc.		112,211
	2,559	LSB Industries, Inc.*		31,732
	128,300	Mercer International, Inc.*		274,562
	3,053	Minerals Technologies, Inc.		150,391
	10,812	Myers Industries, Inc.		94,821
	9,689	Neenah Paper, Inc.		100,281
	1,966	NewMarket Corp.		183,821
	1,323	NL Industries, Inc.		8,203
	3,775	Olympic Steel, Inc.		95,507
	7,823	OM Group, Inc.*		211,377
	44,374	Omnova Solutions, Inc.*		284,437
	4,677	Penford Corp.		27,594
	5,411	Quaker Chemical Corp.		111,467
	3,756	Rock-Tenn Co., Class A		164,513
	1,012	Royal Gold, Inc.		44,700
	6,001	RTI International Metals, Inc.*		124,281
	4,878	Schnitzer Steel Industries, Inc., Class A		210,925
	3,471	Schweitzer-Mauduit International, Inc.		179,277
	5,755	Sensient Technologies Corp.		145,544
	31,894	Solutia, Inc.*		350,834
	31,861	Spartech Corp.		304,910
	967	Stepan Co.		55,351
	10,585	Stillwater Mining Co.*		65,627
	6,003	Texas Industries, Inc.		199,840
	9,866	Titanium Metals Corp.		84,848
	31,513	U.S. Concrete, Inc.*		50,736
	2,151	Universal Stainless & Alloy Products, Inc.*		32,459
	1,650	Valhi, Inc.		15,493
	62,731	Verso Paper Corp.		147,418
	23,355	W.R. Grace & Co.*		511,241
	3,363	Walter Energy, Inc.		196,735
	13,145	Wausau Paper Corp.		115,282
	3,826	Zep, Inc.		65,425
	5,020	Zoltek Cos., Inc.*		44,728
				9,130,498
		Telecommunication Services—0.9%
	9,725	Alaska Communications Systems Group, Inc.		75,660
	703	Atlantic Tele-Network, Inc.		32,226
	989	Cbeyond, Inc.*		13,203
	2,375	Centennial Communications Corp.*		20,092
	56,765	Cincinnati Bell, Inc.*		174,836
	5,218	Consolidated Communications Holdings, Inc.		72,113
	8,878	General Communication, Inc., Class A*		54,600
	3,262	Global Crossing Ltd.*		37,187

See Notes to Financial Statements.

37

Schedule of Investments (Continued)

PowerShares FTSE RAFI US 1500 Small-Mid Portfolio

October 31, 2009 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	71,325	Globalstar, Inc.*	$	46,361
	4,509	Iowa Telecommunications Services, Inc.		53,071
	2,388	NTELOS Holdings Corp.		36,059
	22,932	PAETEC Holding Corp.*		74,300
	2,541	SBA Communications Corp., Class A*		71,682
	934	Shenandoah Telecommunications Co.		15,588
	3,726	SureWest Communications*		32,863
	3,499	Syniverse Holdings, Inc.*		59,938
	14,466	tw telecom, Inc.*		182,272
	12,719	USA Mobility, Inc.*		138,637
	29,043	Virgin Mobile USA, Inc., Class A*		116,172
				1,306,860
		Utilities—1.3%
	5,064	ALLETE, Inc.		171,416
	1,475	American States Water Co.		48,896
	9,771	Avista Corp.		185,258
	1,482	California Water Service Group		54,197
	1,759	Central Vermont Public Service Corp.		34,107
	2,339	CH Energy Group, Inc.		96,858
	862	Chesapeake Utilities Corp.		27,308
	6,894	Cleco Corp.		170,626
	8,010	El Paso Electric Co.*		150,187
	6,002	Empire District Electric Co. (The)		108,396
	2,149	ITC Holdings Corp.		95,459
	3,029	Laclede Group, Inc. (The)		93,021
	2,444	MGE Energy, Inc.		85,589
	1,359	Middlesex Water Co.		20,915
	2,733	Northwest Natural Gas Co.		114,267
	7,006	NorthWestern Corp.		169,195
	821	Ormat Technologies, Inc.		31,034
	1,108	SJW Corp.		24,121
	2,441	South Jersey Industries, Inc.		86,143
	4,358	Southwest Water Co.		24,274
	6,000	UIL Holdings Corp.		154,080
				1,945,347
		Total Common Stocks and Other Equity Interests (Cost $149,769,637)		151,634,197
		Right—0.0%
	835	Winthrop Realty Trust REIT*, expiring 11/19/2009 (Cost $0)		0

Number of Shares			Value
		Money Market Fund—0.2%
	201,392	Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $201,392)	$	201,392
		Total Investments (Cost $149,971,029)—100.1%		151,835,589
		Liabilities in excess of other assets—(0.1%)		(78,085	)
		Net Assets—100.0%	$	151,757,504

REIT Real Estate Investment Trust

*  Non-income producing security.

See Notes to Financial Statements.

38

Portfolio Composition

PowerShares NXQ Portfolio

Sector Breakdown (% of the Fund's Net Assets) as of October 31, 2009

Information Technology	37.2
Health Care	25.3
Consumer Discretionary	20.5
Consumer Staples	4.8
Industrials	3.9
Materials	2.6
Telecommunication Services	2.1
Energy	1.9
Money Market Fund	0.1
Other	1.6

Schedule of Investments

PowerShares NXQ Portfolio

October 31, 2009 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—98.3%
		Consumer Discretionary—20.5%
	950	Ctrip.com International Ltd. ADR (China)*	$	50,863
	1,830	Discovery Communications, Inc., Class A*		50,325
	1,210	Dollar Tree, Inc.*		54,607
	1,035	DreamWorks Animation SKG, Inc., Class A*		33,120
	1,930	LKQ Corp.*		33,331
	785	Netflix, Inc.*		41,958
	1,085	Penn National Gaming, Inc.*		27,266
	1,705	PetSmart, Inc.		40,119
	195	Strayer Education, Inc.		39,579
	4,445	Virgin Media, Inc.		62,097
				433,265
		Consumer Staples—4.8%
	595	Green Mountain Coffee Roasters, Inc.*		39,597
	1,900	Whole Foods Market, Inc.*		60,914
				100,511
		Energy—1.9%
	1,661	Linn Energy LLC		40,695
		Health Care—25.3%
	1,190	Alexion Pharmaceuticals, Inc.*		52,848
	1,980	Allscripts-Misys Healthcare Solutions, Inc.*		38,610
	1,580	Dendreon Corp.*		39,926
	1,605	Endo Pharmaceuticals Holdings, Inc.*		35,952
	800	IDEXX Laboratories, Inc.*		40,896
	4,120	Mylan, Inc.*		66,909
	1,325	Myriad Genetics, Inc.*		32,171
	860	Onyx Pharmaceuticals, Inc.*		22,876
	1,255	Perrigo Co.		46,673
	2,700	QIAGEN NV (Netherlands)*		56,241
	740	Shire PLC ADR*		39,442

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	515	Techne Corp.	$	32,193
	735	United Therapeutics Corp.*		31,267
				536,004
		Industrials—3.9%
	1,025	Bucyrus International, Inc.		45,531
	1,150	Copart, Inc.*		36,995
				82,526
		Information Technology—37.2%
	1,200	ANSYS, Inc.*		48,696
	1,845	ASML Holding NV (Netherlands)*		49,704
	5,685	Brocade Communications Systems, Inc.*		48,777
	1,400	Cree, Inc.*		58,940
	525	Equinix, Inc.*		44,793
	1,070	F5 Networks, Inc.*		48,032
	1,105	MICROS Systems, Inc.*		29,747
	1,005	NetEase.com, Inc. ADR (China)*		38,813
	3,650	Nuance Communications, Inc.*		47,852
	5,770	ON Semiconductor Corp.*		38,601
	2,240	Palm, Inc.*		26,006
	1,400	Rovi Corp.*		38,570
	3,065	SanDisk Corp.*		62,771
	530	Sohu.com, Inc.*		29,468
	1,965	Synopsys, Inc.*		43,230
	3,570	Telefonaktiebolaget LM Ericsson ADR (Sweden)*		37,128
	5,425	Tellabs, Inc.*		32,659
	1,640	Trimble Navigation Ltd.*		34,391
	1,015	Varian Semiconductor Equipment Associates, Inc.*		28,816
				786,994

See Notes to Financial Statements.

39

Schedule of Investments (Continued)

PowerShares NXQ Portfolio

October 31, 2009 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
		Materials—2.6%
	815	Randgold Resources Ltd. ADR (Channel Islands)*	$	54,369
		Telecommunication Services—2.1%
	1,585	SBA Communications Corp., Class A*		44,713
		Total Common Stocks and Other Equity Interests (Cost $1,890,766)		2,079,077
		Money Market Fund—0.1%
	1,806	Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $1,806)		1,806
		Total Investments (Cost $1,892,572)—98.4%		2,080,883
		Other assets less liabilities—1.6%		34,241
		Net Assets—100.0%	$	2,115,124

ADR American Depositary Receipt

*  Non-income producing security.

See Notes to Financial Statements.

40

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Statements of Assets and Liabilities

October 31, 2009 (Unaudited)

	PowerShares Dynamic MagniQuant Portfolio			PowerShares Dynamic Market Portfolio			PowerShares Dynamic OTC Portfolio
ASSETS:
Unaffiliated investments at value	$	29,888,227		$	260,801,727		$	38,764,163
Affiliated investments at value (Note 4)		—			—			—
Receivables:
Dividends		17,892			112,637			4,250
Expense waivers		8,468			2,631			8,877
Investments sold		3,088			38,418			137,336
Other assets		1,243			3,091			1,274
Total Assets		29,918,918			260,958,504			38,915,900
LIABILITIES:
Due to custodian		3,774			11,116			4,569
Payables:
Investments purchased		—			—			128,181
Shares repurchased		—			—			—
Accrued advisory fees		13,297			117,196			18,413
Accrued expenses		45,442			123,395			49,435
Total Liabilities		62,513			251,707			200,598
NET ASSETS	$	29,856,405		$	260,706,797		$	38,715,302
NET ASSETS CONSIST OF:
Shares of beneficial interest	$	47,290,302		$	539,115,368		$	105,752,723
Undistributed net investment income (loss)		4,229			144,243			(19,572	)
Accumulated net realized (loss) on investments		(19,338,993	)		(289,171,266	)		(70,102,049	)
Net unrealized appreciation (depreciation) on investments		1,900,867			10,618,452			3,084,200
Net Assets	$	29,856,405		$	260,706,797		$	38,715,302
Shares outstanding (unlimited amount authorized, $0.01 par value)		1,600,000			7,450,000			1,050,000
Net asset value	$	18.66		$	34.99		$	36.87
Share price	$	18.66		$	34.99		$	36.85
Unaffiliated investments at cost	$	27,987,360		$	250,183,275		$	35,679,963
Affiliated investments at cost	$	—		$	—		$	—

See Notes to Financial Statements.

42

	PowerShares FTSE RAFI US 1000 Portfolio			PowerShares FTSE RAFI US 1500 Small-Mid Portfolio			PowerShares NXQ Portfolio
ASSETS:
Unaffiliated investments at value	$	493,578,660		$	151,835,589		$	2,080,883
Affiliated investments at value (Note 4)		5,973,077			—			—
Receivables:
Dividends		418,767			61,435			166
Expense waivers		29,730			23,354			—
Investments sold		7,386			2,640,179			92,997
Other assets		4,519			2,287			—
Total Assets		500,012,139			154,562,844			2,174,046
LIABILITIES:
Due to custodian		17,519			10,307			—
Payables:
Investments purchased		—			366,343			57,610
Shares repurchased		—			2,281,271			—
Accrued advisory fees		131,448			40,956			1,312
Accrued expenses		169,436			106,463			—
Total Liabilities		318,403			2,805,340			58,922
NET ASSETS	$	499,693,736		$	151,757,504		$	2,115,124
NET ASSETS CONSIST OF:
Shares of beneficial interest	$	713,771,555		$	166,444,255		$	2,810,255
Undistributed net investment income (loss)		537,997			247,208			(5,163	)
Accumulated net realized (loss) on investments		(146,061,473	)		(16,798,519	)		(878,279	)
Net unrealized appreciation (depreciation) on investments		(68,554,343	)		1,864,560			188,311
Net Assets	$	499,693,736		$	151,757,504		$	2,115,124
Shares outstanding (unlimited amount authorized, $0.01 par value)		11,300,000			3,350,000			100,000
Net asset value	$	44.22		$	45.30		$	21.15
Share price	$	44.20		$	45.29		$	21.14
Unaffiliated investments at cost	$	564,524,634		$	149,971,029		$	1,892,572
Affiliated investments at cost	$	3,581,446		$	—		$	—

43

Statements of Operations

Six Months Ended October 31, 2009 (Unaudited)

	PowerShares Dynamic MagniQuant Portfolio			PowerShares Dynamic Market Portfolio			PowerShares Dynamic OTC Portfolio
INVESTMENT INCOME:
Unaffiliated dividend income	$	174,056		$	2,170,731		$	122,923
Affiliated dividend income		—			—			—
Foreign withholding taxes		(24	)		—			—
Total Income		174,032			2,170,731			122,923
EXPENSES:
Advisory fees		75,320			687,182			106,193
Accounting & administration fees		32,132			34,080			32,132
Professional fees		15,838			21,039			16,082
Sub-licensing		7,532			41,231			6,371
Custodian & transfer Agent fees		7,241			11,614			6,104
Printing		3,426			33,455			4,683
Trustees		2,546			7,194			2,763
Other expenses		4,794			10,999			7,083
Total Expenses		148,829			846,794			181,411
(Waivers) and/or Recapture		(50,913	)		(23,068	)		(53,979	)
Net Expenses		97,916			823,726			127,432
Net Investment Income (Loss)		76,116			1,347,005			(4,509	)
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) from:
Investments		107,170			(9,399,012	)		(1,190,770	)
In-kind redemptions		3,671,364			44,849,767			5,379,195
Foreign currency related transactions		—			—			—
Net realized gain (loss)		3,778,534			35,450,755			4,188,425
Net change in unrealized appreciation (depreciation) on investments		(751,716	)		(5,454,560	)		1,049,768
Net realized and unrealized gain on investments		3,026,818			29,996,195			5,238,193
Net increase in net assets resulting from operations	$	3,102,934		$	31,343,200		$	5,233,684

See Notes to Financial Statements.

44

	PowerShares FTSE RAFI US 1000 Portfolio			PowerShares FTSE RAFI US 1500 Small-Mid Portfolio			PowerShares NXQ Portfolio
INVESTMENT INCOME:
Unaffiliated dividend income	$	4,138,663		$	694,886		$	1,941
Affiliated dividend income		60,238			—			—
Foreign withholding taxes		(5,845	)		(426	)		(160	)
Total Income		4,193,056			694,460			1,781
EXPENSES:
Advisory fees		688,531			189,612			6,944
Accounting & administration fees		59,217			32,132			—
Professional fees		24,289			17,564			—
Sub-licensing		213,682			58,846			—
Custodian & transfer Agent fees		38,850			24,773			—
Printing		33,672			36,783			—
Trustees		10,127			4,010			—
Other expenses		22,820			26,261			—
Total Expenses		1,091,188			389,981			6,944
(Waivers) and/or Recapture		(165,233	)		(134,985	)		—
Net Expenses		925,955			254,996			6,944
Net Investment Income (Loss)		3,267,101			439,464			(5,163	)
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) from:
Investments		(76,835,065	)		(6,105,787	)		9,740
In-kind redemptions		10,674,592			2,830,179			33,529
Foreign currency related transactions		—			2,872			—
Net realized gain (loss)		(66,160,473	)		(3,272,736	)		43,269
Net change in unrealized appreciation (depreciation) on investments		173,761,703			31,086,575			322,155
Net realized and unrealized gain on investments		107,601,230			27,813,839			365,424
Net increase in net assets resulting from operations	$	110,868,331		$	28,253,303		$	360,261

45

Statements of Changes in Net Assets

	PowerShares Dynamic MagniQuant Portfolio						PowerShares Dynamic Market Portfolio						PowerShares Dynamic OTC Portfolio
	Six Months Ended October 31, 2009 (Unaudited)			Year Ended April 30, 2009			Six Months Ended October 31, 2009 (Unaudited)			Year Ended April 30, 2009			Six Months Ended October 31, 2009 (Unaudited)			Year Ended April 30, 2009
OPERATIONS:
Net investment income (loss)	$	76,116		$	301,723		$	1,347,005		$	5,290,794		$	(4,509	)	$	52,820
Net realized gain (loss) on investments		3,778,534			(21,597,836	)		35,450,755			(217,180,493	)		4,188,425			(29,545,505	)
Net change in unrealized appreciation (depreciation) on investments		(751,716	)		3,017,483			(5,454,560	)		15,906,229			1,049,768			2,948,627
Net increase (decrease) in net assets resulting from operations		3,102,934			(18,278,630	)		31,343,200			(195,983,470	)		5,233,684			(26,544,058	)
Undistributed net investment income (loss) included in the price of units issued and redeemed		(1,435	)		(14,018	)		(24,082	)		(90,167	)		(6,323	)		(30,940	)
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income		(92,787	)		(279,388	)		(1,536,413	)		(5,193,546	)		(61,560	)		—
Return of capital		—			—			—			—			—			—
Total distributions to shareholders		(92,787	)		(279,388	)		(1,536,413	)		(5,193,546	)		(61,560	)		—
SHAREHOLDER TRANSACTIONS:
Proceeds from shares sold		16,184,249			58,065,641			232,301,396			419,971,271			21,116,397			117,636,471
Value of shares repurchased		(17,989,204	)		(73,556,808	)		(262,180,814	)		(578,717,396	)		(26,966,689	)		(147,885,491	)
Net income equalization		1,435			14,018			24,082			90,167			6,323			30,940
Net increse (decrease) in net assets resulting from shares transactions		(1,803,520	)		(15,477,149	)		(29,855,336	)		(158,655,958	)		(5,843,969	)		(30,218,080	)
Increase (Decrease) in Net Assets		1,205,192			(34,049,185	)		(72,631	)		(359,923,141	)		(678,168	)		(56,793,078	)
NET ASSETS:
Beginning of period		28,651,213			62,700,398			260,779,428			620,702,569			39,393,470			96,186,548
End of period	$	29,856,405		$	28,651,213		$	260,706,797		$	260,779,428		$	38,715,302		$	39,393,470
Undistributed net investment income (loss) at end of period	$	4,229		$	22,335		$	144,243		$	357,733		$	(19,572	)	$	52,820
CHANGES IN SHARES OUTSTANDING:
Shares sold		900,000			2,700,000			6,850,000			11,050,000			600,000			2,800,000
Shares repurchased		(1,000,000	)		(3,500,000	)		(7,700,000	)		(15,650,000	)		(750,000	)		(3,650,000	)
Shares outstanding, beginning of period		1,700,000			2,500,000			8,300,000			12,900,000			1,200,000			2,050,000
Shares outstanding, end of period		1,600,000			1,700,000			7,450,000			8,300,000			1,050,000			1,200,000

See Notes to Financial Statements.

46

	PowerShares FTSE RAFI US 1000 Portfolio						PowerShares FTSE RAFI US 1500 Small-Mid Portfolio						PowerShares NXQ Portfolio
	Six Months Ended October 31, 2009 (Unaudited)			Year Ended April 30, 2009			Six Months Ended October 31, 2009 (Unaudited)			Year Ended April 30, 2009			Six Months Ended October 31, 2009 (Unaudited)			Year Ended April 30, 2009
OPERATIONS:
Net investment income (loss)	$	3,267,101		$	12,820,222		$	439,464		$	1,261,499		$	(5,163	)	$	(6,809	)
Net realized gain (loss) on investments		(66,160,473	)		(132,347,764	)		(3,272,736	)		(24,506,125	)		43,269			(682,990	)
Net change in unrealized appreciation (depreciation) on investments		173,761,703			(160,948,517	)		31,086,575			(16,174,382	)		322,155			(262,500	)
Net increase (decrease) in net assets resulting from operations		110,868,331			(280,476,059	)		28,253,303			(39,419,008	)		360,261			(952,299	)
Undistributed net investment income (loss) included in the price of units issued and redeemed		(8,604	)		(915,463	)		112,567			11,433			—			16
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income		(4,346,336	)		(15,035,089	)		(508,220	)		(1,209,035	)		—			(2,563	)
Return of capital		—			—			—			—			—			(2,563	)
Total distributions to shareholders		(4,346,336	)		(15,035,089	)		(508,220	)		(1,209,035	)		—			(5,126	)
SHAREHOLDER TRANSACTIONS:
Proceeds from shares sold		42,891,873			115,318,454			36,375,290			49,466,935			1,097,092			16,268,388
Value of shares repurchased		(46,162,665	)		(300,328,510	)		(6,761,798	)		(45,383,840	)		(1,097,092	)		(16,314,218	)
Net income equalization		8,604			915,463			(112,567	)		(11,433	)		—			(16	)
Net increse (decrease) in net assets resulting from shares transactions		(3,262,188	)		(184,094,593	)		29,500,925			4,071,662			—			(45,846	)
Increase (Decrease) in Net Assets		103,251,203			(480,521,204	)		57,358,575			(36,544,948	)		360,261			(1,003,255	)
NET ASSETS:
Beginning of period		396,442,533			876,963,737			94,398,929			130,943,877			1,754,863			2,758,118
End of period	$	499,693,736		$	396,442,533		$	151,757,504		$	94,398,929		$	2,115,124		$	1,754,863
Undistributed net investment income (loss) at end of period	$	537,997		$	1,625,836		$	247,208		$	203,397		$	(5,163	)	$	—
CHANGES IN SHARES OUTSTANDING:
Shares sold		1,050,000			3,500,000			800,000			1,700,000			50,000			600,000
Shares repurchased		(1,150,000	)		(8,000,000	)		(150,000	)		(1,600,000	)		(50,000	)		(600,000	)
Shares outstanding, beginning of period		11,400,000			15,900,000			2,700,000			2,600,000			100,000			100,000
Shares outstanding, end of period		11,300,000			11,400,000			3,350,000			2,700,000			100,000			100,000

47

Financial Highlights

PowerShares Dynamic MagniQuant Portfolio

	Six Months Ended October 31, 2009			Year Ended April 30,						For the Period October 12, 2006* Through
	(Unaudited)			2009			2008			April 30, 2007
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	16.85		$	25.08		$	28.02		$	25.37
Net investment income**		0.05			0.14			0.14			0.15
Net realized and unrealized gain (loss) on investments		1.82			(8.24	)		(2.87	)		2.55
Total from investment operations		1.87			(8.10	)		(2.73	)		2.70
Distributions to shareholders from:
Net investment income		(0.06	)		(0.13	)		(0.20	)		(0.05	)
Return of capital		—			—			(0.01	)		—
Total distributions		(0.06	)		(0.13	)		(0.21	)		(0.05	)
Net asset value at end of period	$	18.66		$	16.85		$	25.08		$	28.02
Share price at end of period***	$	18.66		$	16.84
NET ASSET VALUE TOTAL RETURN****		11.09	%		(32.40	)%		(9.81	)%		10.67	%
SHARE PRICE TOTAL RETURN****		11.15	%		(32.41	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	29,856		$	28,651		$	62,700		$	81,269
Ratio to average net assets of:
Expenses, after (Waivers) and/or Recapture		0.65	%†		0.65	%		0.67	%		0.67	%†
Expenses, prior to (Waivers) and/or Recapture		0.99	%†		0.87	%		0.72	%		0.84	%†
Net investment income, after (Waivers) and/or Recapture		0.51	%†		0.70	%		0.53	%		1.04	%†
Portfolio turnover rate ††		52	%		102	%		76	%		23	%
Undistributed net investment income (loss) included in price of units issued and redeemed**#	$	(0.00	)(a)	$	(0.01	)	$	0.00	(a)	$	0.02

PowerShares Dynamic Market Portfolio

	Six Months Ended October 31, 2009			Year Ended April 30,
	(Unaudited)			2009			2008			2007			2006			2005
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	31.42		$	48.12		$	53.32		$	47.87		$	39.11		$	35.05
Net investment income**		0.17			0.50			0.37			0.42			0.34			0.26
Net realized and unrealized gain (loss) on investments		3.59			(16.72	)		(5.09	)		5.35			8.75			4.02
Total from investment operations		3.76			(16.22	)		(4.72	)		5.77			9.09			4.28
Distributions to shareholders from:
Net investment income		(0.19	)		(0.48	)		(0.48	)		(0.32	)		(0.33	)		(0.22	)
Net asset value at end of period	$	34.99		$	31.42		$	48.12		$	53.32		$	47.87		$	39.11
Share price at end of period***	$	34.99		$	31.41
NET ASSET VALUE TOTAL RETURN****		11.99	%		(33.86	)%		(8.93	)%		12.12	%		23.30	%		12.23	%
SHARE PRICE TOTAL RETURN****		12.02	%		(33.84	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	260,707		$	260,779		$	620,703		$	973,105		$	919,156		$	283,620
Ratio to average net assets of:
Expenses, after (Waivers) and/or Recapture		0.60	%†		0.60	%		0.58	%		0.60	%		0.60	%		0.60	%
Expenses, prior to (Waivers) and/or Recapture		0.62	%†		0.60	%		0.59	%		0.62	%		0.63	%		0.70	%
Net investment income, after (Waivers) and/or Recapture		0.98	%†		1.28	%		0.72	%		0.87	%		0.76	%		0.68	%
Portfolio turnover rate ††		46	%		113	%		121	%		114	%		103	%		94	%
Undistributed net investment income (loss) included in price of units issued and redeemed**#	$	(0.00	)(a)	$	(0.01	)	$	(0.01	)	$	0.00	(a)		—			—

*  Commencement of Investment Operations.

**  Based on average shares outstanding.

***  The mean between the last bid and ask prices.

****  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Share price total return is calculated assuming an initial investment made at the share price at the beginning of the period, reinvestment of all dividends and distributions at share price during the period, and sale at the share price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

†  Annualized.

††  Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.

#  The per share amount of equalization is presented to show the impact of equalization on distributable earnings per share.

(a)  Amount represents less than $0.005.

See Notes to Financial Statements.

48

Financial Highlights (Continued)

PowerShares Dynamic OTC Portfolio

	Six Months Ended October 31, 2009			Year Ended April 30,
	(Unaudited)			2009			2008			2007			2006			2005
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	32.83		$	46.92		$	55.03		$	53.60		$	42.38		$	36.59
Net investment income (loss)**		(0.00	)(a)		0.03			(0.11	)		(0.07	)		(0.02	)		(0.03	)
Net realized and unrealized gain (loss) on investments		4.09			(14.12	)		(7.94	)		1.50			11.30			5.82
Total from investment operations		4.09			(14.09	)		(8.05	)		1.43			11.28			5.79
Distributions to shareholders from:
Net investment income		(0.05	)		—			—			—			(0.02	)		—
Return of capital		—			—			(0.06	)		—			(0.04	)		—
Total distributions		(0.05	)		—			(0.06	)		—			(0.06	)		—
Net asset value at end of period	$	36.87		$	32.83		$	46.92		$	55.03		$	53.60		$	42.38
Share price at end of period***	$	36.85		$	32.83
NET ASSET VALUE TOTAL RETURN****		12.48	%		(30.03	)%		(14.65	)%		2.67	%		26.63	%		15.81	%
SHARE PRICE TOTAL RETURN****		12.42	%		(30.06	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	38,715		$	39,393		$	96,187		$	159,599		$	222,440		$	65,747
Ratio to average net assets of:
Expenses, after (Waivers) and/or Recapture		0.60	%†		0.59	%		0.59	%		0.60	%		0.60	%		0.60	%
Expenses, prior to (Waivers) and/or Recapture		0.85	%†		0.74	%		0.64	%		0.69	%		0.69	%		1.06	%
Net investment income (loss), after (Waivers) and/or Recapture		(0.02	)%†		0.08	%		(0.21	)%		(0.15	)%		(0.04	)%		(0.06	)%
Portfolio turnover rate ††		59	%		77	%		60	%		107	%		77	%		112	%
Undistributed net investment income (loss) included in price of units issued and redeemed**#	$	(0.01	)	$	(0.02	)	$	(0.01	)	$	0.03			—			—

PowerShares FTSE RAFI US 1000 Portfolio

	Six Months Ended October 31, 2009			Year Ended April 30,									For the Period December 19, 2005* Through
	(Unaudited)			2009			2008			2007			April 30, 2006
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	34.78		$	55.15		$	60.99		$	52.44		$	49.64
Net investment income**		0.29			0.97			0.89			0.78			0.24
Net realized and unrealized gain (loss) on investments		9.53			(20.26	)		(5.96	)		8.38			2.68
Total from investment operations		9.82			(19.29	)		(5.07	)		9.16			2.92
Distributions to shareholders from:
Net investment income		(0.38	)		(1.08	)		(0.77	)		(0.61	)		(0.12	)
Net asset value at end of period	$	44.22		$	34.78		$	55.15		$	60.99		$	52.44
Share price at end of period***	$	44.20		$	34.78
NET ASSET VALUE TOTAL RETURN****		28.34	%		(35.26	)%		(8.42	)%		17.60	%		5.89	%
SHARE PRICE TOTAL RETURN****		28.28	%		(35.20	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	499,694		$	396,443		$	876,964		$	1,055,189		$	104,883
Ratio to average net assets of:
Expenses, after (Waivers) and/or Recapture		0.39	%†		0.58	%		0.67	%		0.70	%		0.76	%†
Expenses, prior to (Waivers) and/or Recapture		0.46	%†		0.60	%		0.66	%		0.71	%		1.00	%†
Net investment income, after (Waivers) and/or Recapture		1.38	%†		2.34	%		1.50	%		1.40	%		1.38	%†
Portfolio turnover rate ††		10	%		15	%		12	%		8	%		2	%
Undistributed net investment income (loss) included in price of units issued and redeemed**#	$	(0.00	)(a)	$	(0.07	)	$	(0.04	)	$	0.33			—

*  Commencement of Investment Operations.

**  Based on average shares outstanding.

***  The mean between the last bid and ask prices.

****  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Share price total return is calculated assuming an initial investment made at the share price at the beginning of the period, reinvestment of all dividends and distributions at share price during the period, and sale at the share price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

†  Annualized.

††  Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.

#  The per share amount of equalization is presented to show the impact of equalization on distributable earnings per share.

(a)  Amount represents less than $0.005.

See Notes to Financial Statements.

49

Financial Highlights (Continued)

PowerShares FTSE RAFI US 1500 Small-Mid Portfolio

	Six Months Ended October 31, 2009			Year Ended April 30,						For the Period September 20, 2006* Through
	(Unaudited)			2009			2008			April 30, 2007
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	34.96		$	50.36		$	57.12		$	50.52
Net investment income**		0.15			0.46			0.50			0.27
Net realized and unrealized gain (loss) on investments		10.36			(15.42	)		(6.81	)		6.50
Total from investment operations		10.51			(14.96	)		(6.31	)		6.77
Distributions to shareholders from:
Net investment income		(0.17	)		(0.44	)		(0.45	)		(0.17	)
Net asset value at end of period	$	45.30		$	34.96		$	50.36		$	57.12
Share price at end of period***	$	45.29		$	34.90
NET ASSET VALUE TOTAL RETURN****		30.09	%		(29.79	)%		(11.10	)%		13.42	%
SHARE PRICE TOTAL RETURN****		30.29	%		(29.84	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	151,758		$	94,399		$	130,944		$	85,680
Ratio to average net assets of:
Expenses, after (Waivers) and/or Recapture		0.39	%†		0.58	%		0.71	%		0.73	%†
Expenses, prior to (Waivers) and/or Recapture		0.60	%†		0.79	%		0.76	%		0.92	%†
Net investment income, after (Waivers) and/or Recapture		0.67	%†		1.22	%		0.92	%		0.83	%†
Portfolio turnover rate ††		5	%		15	%		42	%		9	%
Undistributed net investment income included in price of units issued and redeemed**#	$	0.04		$	0.00	(a)	$	0.09		$	0.05

PowerShares NXQ Portfolio

	Six Months Ended October 31, 2009 (Unaudited)			Year Ended April 30, 2009			For the Period April 1, 2008* Through April 30, 2008
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	17.55		$	27.58		$	25.77
Net investment income (loss)**		(0.05	)		(0.07	)		0.03
Net realized and unrealized gain (loss) on investments		3.65			(9.91	)		1.78
Total from investment operations		3.60			(9.98	)		1.81
Distributions to shareholders from:
Net investment income		—			(0.03	)		—
Return of capital		—			(0.02	)		—
Total distributions		—			(0.05	)		—
Net asset value at end of period	$	21.15		$	17.55		$	27.58
Share price at end of period***	$	21.14		$	17.52
NET ASSET VALUE TOTAL RETURN****		20.51	%		(36.21	)%		7.02	%(b)
SHARE PRICE TOTAL RETURN****		20.66	%		(36.32	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	2,115		$	1,755		$	2,758
Ratio to average net assets of:
Expenses		0.70	%†		0.70	%		0.70	%†
Net investment income (loss)		(0.52	)%†		(0.30	)%		0.93	%†
Portfolio turnover rate ††		49	%		118	%		15	%
Undistributed net investment income (loss) included in price of units issued and redeemed**#		—		$	0.00	(a)	$	(0.01	)

*  Commencement of Investment Operations.

**  Based on average shares outstanding.

***  The mean between the last bid and ask prices.

****  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Share price total return is calculated assuming an initial investment made at the share price at the beginning of the period, reinvestment of all dividends and distributions at share price during the period, and sale at the share price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

†  Annualized.

††  Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.

#  The per share amount of equalization is presented to show the impact of equalization on distributable earnings per share.

(a)  Amount represents less than $0.005.

(b)  The total return from Fund Inception (first day of trading on the exchange) to April 30, 2008 was 5.71%.

See Notes to Financial Statements.

50

Notes to Financial Statements

PowerShares Exchange-Traded Fund Trust

October 31, 2009 (Unaudited)

Note 1. Organization

PowerShares Exchange-Traded Fund Trust (the "Trust") was organized as a Massachusetts business trust on June 9, 2000 and is authorized to have multiple series of portfolios. The Trust is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the "1940 Act"). As of the period-end, the Trust offered sixty-two portfolios. This report includes the following portfolios:

Full Name	Short Name
PowerShares Dynamic MagniQuant Portfolio	"Dynamic MagniQuant Portfolio"
PowerShares Dynamic Market Portfolio	"Dynamic Market Portfolio"
PowerShares Dynamic OTC Portfolio	"Dynamic OTC Portfolio"
PowerShares FTSE RAFI US 1000 Portfolio	"FTSE RAFI US 1000 Portfolio"
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio	"FTSE RAFI US 1500 Small-Mid Portfolio"
PowerShares NXQ Portfolio	"NXQ Portfolio"

Each portfolio (the "Fund" and collectively the "Funds") represents a separate series of the Trust. The shares of the Funds are referred to herein as "Shares" or "Fund's Shares." Each Fund's Shares are listed and traded on the NYSE Arca, Inc. ("NYSE Arca"), except for Shares of the FTSE RAFI US 1500 Small-Mid Portfolio and NXQ Portfolio which are listed and traded on The NASDAQ Stock Market LLC.

The Funds' market prices may differ to some degree from the net asset value ("NAV") of the Shares of each Fund. Unlike conventional mutual funds, each Fund issues and redeems Shares on a continuous basis, at NAV, only in a large specified number of Shares, each called a "Creation Unit." Creation Units are issued and redeemed generally in-kind for securities included in the relevant index. Except when aggregated in Creation Units, the Shares are not individually redeemable securities of the Funds.

The investment objective of each Fund is to seek investment results that correspond generally to the price and yield (before fees and expenses) of the following indices (each, an "Underlying Index"):

Fund	Index
Dynamic MagniQuant Portfolio	Top 200 Dynamic IntellidexSM Index
Dynamic Market Portfolio	Dynamic Market IntellidexSM Index
Dynamic OTC Portfolio	Dynamic OTC IntellidexSM Index
FTSE RAFI US 1000 Portfolio	FTSE RAFI US 1000 Index
FTSE RAFI US 1500 Small-Mid Portfolio	FTSE RAFI US 1500 Small-Mid Index
NXQ Portfolio	NASDAQ Q-50 IndexSM

Note 2. Significant Accounting Policies

The preparation of the financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements, including estimates and assumptions related to taxation. Actual results could differ from these estimates. In addition, the Funds monitor for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print, which is generally 45 days from the period-end date.

51

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

October 31, 2009 (Unaudited)

A. Security Valuation

Securities, including restricted securities, are valued according to the following policies.

A security listed or traded on an exchange (except convertible bonds) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. Listed options, if no closing price is available, are valued at the mean between the last bid and ask prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and ask prices.

Investments in open-end registered investment companies not traded on an exchange are valued at the end of day NAV per share.

Debt obligations (including convertible bonds) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Short-term obligations, including commercial paper, having 60 days or less to maturity are recorded at amortized cost which approximates value. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and/or principal payments.

Foreign securities (including foreign exchange contracts) are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the London world markets. If market quotations are available and reliable for foreign exchange traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the New York Stock Exchange ("NYSE"), closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to refl ect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accou nting controls and standards.

Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources.

52

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

October 31, 2009 (Unaudited)

Securities for which market quotations are not readily available or are unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust's officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security's fair value.

Valuations change in response to many factors, including the historical and prospective earnings of the issuer, the value of the issuer's assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

B. Other Risks

A Fund may concentrate investments in a comparatively narrow segment of the economy. Consequently, such Fund may tend to be more volatile than other funds, and the value of investments may tend to rise and fall more rapidly.

With respect to the FTSE RAFI US 1000 Portfolio, the Adviser uses a "sampling" methodology in seeking to achieve the Fund's investment objective. Sampling involves the use of quantitative analysis to select securities from the Underlying Index to obtain a representative sample of securities that have, in the aggregate, investment characteristics similar to the Underlying Index universe, based on such factors as industry weightings, market capitalization and other financial characteristics of securities. The Adviser generally expects the Fund to hold less than the total number of securities in the Underlying Index, but reserves the right to hold as many securities as it believes necessary to achieve the Fund's investment objective. As a result, an adverse development respecting an issuer of the securities held by the Fund could result in a greater decline in NAV than would be the case if the Fund held all of the securities in the Fund's Underlying Index. To the extent the assets in the Fund are smaller, these risks will be greater.

A Fund may invest a large percentage of its assets in securities of a limited number of companies, such that each investment may have a greater effect on the Fund's overall performance, and any change in the value of those securities could significantly affect the value of your investment in the Fund.

C. Federal Income Taxes

Each Fund intends to comply with the provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of the Fund's taxable earnings to its shareholders. As such, the Funds will not be subject to Federal income taxes on otherwise taxable income (including net realized gains) that is distributed to the shareholders. Therefore, no provision for Federal income taxes is recorded in the financial statements.

Income and capital gain distributions are determined in accordance with Federal income tax regulations, which may differ from accounting principles generally accepted in the United States of America. These differences are primarily due to differing book and tax treatments for in-kind transactions, losses deferred due to wash sales, and passive foreign investment company adjustments, if any.

The Funds file tax returns in the United States Federal jurisdiction and certain other jurisdictions. Generally, a Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.

53

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

October 31, 2009 (Unaudited)

D. Investment Income and Investment Transactions

Dividend income is recorded on the ex-dividend date net of foreign taxes withheld, if any. Interest income is recorded on the accrual basis. Investment transactions are recorded on the trade date. Realized gains and losses from the sale or disposition of securities are calculated on the specific identified cost basis. Dividends and interest received by a Fund may give rise to withholding and other taxes imposed by foreign countries. Corporate actions (including cash dividends) are recorded net of non-reclaimable foreign tax withholdings on the ex-dividend date. Tax conventions between certain countries and the United States may reduce or eliminate such taxes.

E. Expenses

Expenses of the Trust, which are directly identifiable to a specific Fund, are applied to that Fund. Expenses which are not readily identifiable to a specific Fund are allocated in such a manner as deemed equitable, taking into consideration the nature and type of expense and the relative net assets of each Fund.

Each Fund (except for NXQ Portfolio) is responsible for all of its expenses, including the investment advisory fees, costs of transfer agency, custody, fund administration, legal, audit and other services, interest, taxes, brokerage commissions and other expenses connected with executions of portfolio transactions, any distribution fees or expenses and extraordinary expenses.

The NXQ Portfolio has agreed to pay an annual unitary management fee to Invesco PowerShares Capital Management LLC (the "Adviser"). The Adviser has agreed to pay for substantially all expenses of the NXQ Portfolio, including the cost of transfer agency, custody, fund administration, legal, audit and other services, except for advisory fees, distribution fees, if any, brokerage expenses, taxes, interest and other extraordinary expenses.

F. Dividends and Distributions to Shareholders

Each Fund declares and pays dividends from net investment income, if any, to its shareholders quarterly and records on ex-dividend date. Each Fund distributes net realized taxable capital gains, if any, generally annually in cash and records on ex-dividend date. Such distributions on a tax basis are determined in conformity with income tax regulations which may differ from accounting principles generally accepted in the United States of America. Distributions in excess of tax basis earnings and profits, if any, are reported in such Fund's financial statements as a tax return of capital at fiscal period-end.

G. Equalization

All Funds use the accounting practice of equalization. This accounting method is used to keep the continuing shareholder's per Share equity in undistributed net investment income from being affected by the continuous sales and redemptions of capital shares. Equalization is calculated on a per Share basis whereby a portion of the proceeds from the sales and cost of repurchases of capital Shares is applied to undistributed net investment income. The amount of equalization is disclosed in the Statements of Changes in Net Assets as undistributed net investment income included in the price of capital Shares issued or redeemed. The distributions to shareholders of amounts so applied may be deemed to be a return of capital for tax purposes to the extent that such distributions exceed taxable income.

54

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

October 31, 2009 (Unaudited)

Note 3. Investment Advisory Agreement and Other Agreements

The Trust has entered into an Investment Advisory Agreement with the Adviser under which the Adviser has overall responsibility as the Funds' investment adviser for the selection and ongoing monitoring of the Funds' investments, managing the Funds' business affairs and providing certain clerical, bookkeeping and other administrative services. Each Fund (except for the FTSE RAFI US 1000 Portfolio, the FTSE RAFI US 1500 Small-Mid Portfolio and the NXQ Portfolio) has agreed to pay the Adviser an annual fee of 0.50% of the Fund's average daily net assets. Effective November 1, 2008, the FTSE RAFI US 1000 Portfolio and the FTSE RAFI US 1500 Small-Mid Portfolio agreed to pay the Adviser an annual fee of 0.29% of the Fund's average daily net assets. The NXQ Portfolio has agreed to pay the Adviser an annual unitary management fee of 0.70% of the Fund's average daily net assets and the Adviser has agreed to pay for substantially all expe nses of the NXQ Portfolio, including the cost of transfer agency, custody, fund administration, legal, audit and other services, except for advisory fees, distribution fees, if any, brokerage expenses, taxes, interest and other extraordinary expenses.

The Adviser has entered into an Amended and Restated Excess Expense Agreement (the "Excess Expense Agreement") with the Trust. For the Dynamic MagniQuant Portfolio, the Adviser has agreed to waive fees and/or pay Fund expenses to the extent necessary to prevent the operating expenses of the Fund (excluding interest expense, brokerage commissions and other trading expenses, sub-licensing fees, offering costs, taxes and extraordinary expenses) from exceeding 0.60% of the Fund's average daily net assets per year (the "Expense Cap"), at least until August 31, 2010. The FTSE RAFI US 1000 Portfolio's and the FTSE RAFI US 1500 Small-Mid Portfolio's Expense Cap is 0.39% of the Fund's average daily net assets per year, at least until August 31, 2010, and sub-licensing fees are included in the expenses subject to the Expense Cap. Offering costs excluded from the Expense Cap are: (a) legal fees pertaining to the Funds' Shares offered for s ale; (b) Securities and Exchange Commission and state registration fees; and (c) initial fees paid to be listed on an exchange. For the Dynamic Market Portfolio and the Dynamic OTC Portfolio, the Adviser has agreed to waive fees and/or pay Fund expenses to the extent necessary to prevent the operating expenses of each Fund (excluding interest expense, brokerage commissions and other trading expenses, taxes and extraordinary expenses) from exceeding 0.60% of the Fund's average daily net assets per year at least until August 31, 2010.

For the Dynamic MagniQuant Portfolio, the FTSE RAFI US 1000 Portfolio and the FTSE RAFI US 1500 Small-Mid Portfolio, the Excess Expense Agreement provides that the expenses borne by the Adviser are subject to recapture by the Adviser for up to three years from the date the fee or expense was borne by the Adviser, but no recapture payment will be made by a Fund if it would result in the Fund exceeding its Expense Cap as specified above. For the Dynamic Market Portfolio and the Dynamic OTC Portfolio, the expenses borne by the Adviser are not subject to recapture. The Excess Expense Agreement does not apply to the NXQ Portfolio.

The net amount of fees waived and other expenses assumed by the Adviser and the amount of recapture paid to the Adviser pursuant to the Excess Expense Agreement are collectively referred to as "(Waivers) and/or Recapture." The net amounts of (Waivers) and/or Recapture for the period ended October 31, 2009 are shown on the Statements of Operations.

55

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

October 31, 2009 (Unaudited)

The amounts available for potential future recapture by the Adviser under the Excess Expense Agreement and the expiration schedule at October 31, 2009 are as follows:

	Total Potential		Potential Recapture Amounts Expiring
	Recapture Amount		04/30/10		04/30/11		04/30/12		10/31/12
Dynamic MagniQuant Portfolio	$	236,236	$	35,869	$	52,795	$	96,659	$	50,913
FTSE RAFI US 1000 Portfolio		264,155		—		—		98,922		165,233
FTSE RAFI US 1500 Small-Mid Portfolio		471,460		37,393		70,284		228,798		134,985

The Trust has entered into a Distribution Agreement with Invesco Aim Distributors, Inc. (the "Distributor"), which serves as the distributor of Creation Units for each Fund. The Distributor does not maintain a secondary market in the Shares.

The Adviser has entered into a licensing agreement for each Fund with the following Licensors:

Fund	Licensor
Dynamic MagniQuant Portfolio	NYSE Arca
Dynamic Market Portfolio	NYSE Arca
Dynamic OTC Portfolio	NYSE Arca
FTSE RAFI US 1000 Portfolio	FTSE International Ltd.
FTSE RAFI US 1500 Small-Mid Portfolio	FTSE International Ltd.
NXQ Portfolio	The NASDAQ OMX Group, Inc.

The Underlying Index name trademarks are owned by the respective Licensors. These trademarks have been licensed to the Adviser for use with the Funds. The Funds are not sponsored, endorsed, sold or promoted by the Licensors and the Licensors make no representation regarding the advisability of investing in any of these Funds. The Trust has entered into a sub-licensing agreement under which the Funds (other than the NXQ Portfolio) are required to pay the sub-licensing fees which are shown on the Statements of Operations.

The Trust has entered into service agreements whereby The Bank of New York Mellon, a wholly-owned subsidiary of The Bank of New York Mellon Corporation, serves as the administrator, custodian, fund accountant and transfer agent for each Fund.

Note 4. Investments in Affiliates

The Fund's Adviser is a subsidiary of Invesco Ltd. and therefore, Invesco Ltd. is considered to be affiliated with the Fund. The table below shows the transactions in and earnings from the investment in Invesco Ltd. for the period ended October 31, 2009.

FTSE RAFI US 1000 Portfolio

	Value 04/30/09		Purchases at Cost		Proceeds from Sales			Change in Unrealized Appreciation		Realized Gain		Value 10/31/09		Dividend Income
Invesco Ltd.	$	4,330,859	$	732,860	$	(1,003,014	)	$	1,722,288	$	190,084	$	5,973,077	$	60,238

56

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

October 31, 2009 (Unaudited)

Note 5. Additional Valuation Information

Generally Accepted Accounting Principles ("GAAP") defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3) generally when market prices are not readily available or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment's assigned level:

Level 1 – Prices are determined using quoted prices in an active market for identical assets.

Level 2 – Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others.

Level 3 – Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund's own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.

The following is a summary of the tiered valuation input levels, as of October 31, 2009. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

	Investment in Securities
	Level 1		Level 2		Level 3		Total
Dynamic MagniQuant Portfolio
Equity Securities	$	29,850,897	$	—	$	—	$	29,850,897
Money Market Fund		37,330		—		—		37,330
Total Investments		29,888,227		—		—		29,888,227
Dynamic Market Portfolio
Equity Securities		260,716,363		—		—		260,716,363
Money Market Fund		85,364		—		—		85,364
Total Investments		260,801,727		—		—		260,801,727
Dynamic OTC Portfolio
Equity Securities		38,713,641		—		—		38,713,641
Money Market Fund		50,522		—		—		50,522
Total Investments		38,764,163		—		—		38,764,163
FTSE RAFI US 1000 Portfolio
Equity Securities		499,337,584		—		—		499,337,584
Money Market Fund		214,153		—		—		214,153
Total Investments		499,551,737		—		—		499,551,737

57

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

October 31, 2009 (Unaudited)

	Investment in Securities
	Level 1		Level 2		Level 3		Total
FTSE RAFI US 1500 Small-Mid Portfolio
Equity Securities	$	151,633,924	$	273	$	—	$	151,634,197
Money Market Fund		201,392		—		—		201,392
Total Investments		151,835,316		273		—		151,835,589
NXQ Portfolio
Equity Securities		2,079,077		—		—		2,079,077
Money Market Fund		1,806		—		—		1,806
Total Investments		2,080,883		—		—		2,080,883

Note 6. Federal Income Tax

At October 31, 2009, cost of investments on a tax basis including the adjustments for financial reporting purposes as of the most recently completed Federal income tax reporting year was as follows:

	Cost*		Net Unrealized Appreciation (Depreciation)			Aggregate Unrealized Appreciation		Aggregate Unrealized (Depreciation)
Dynamic MagniQuant Portfolio	$	27,990,357	$	1,897,870		$	2,958,283	$	(1,060,413	)
Dynamic Market Portfolio		250,198,963		10,602,764			17,128,600		(6,525,836	)
Dynamic OTC Portfolio		35,696,958		3,067,205			4,386,777		(1,319,572	)
FTSE RAFI US 1000 Portfolio		577,332,513		(77,780,776	)		37,919,212		(115,699,988	)
FTSE RAFI US 1500 Portfolio		152,675,757		(840,168	)		26,392,242		(27,232,410	)
NXQ Portfolio		1,907,853		173,030			284,263		(111,233	)

* Cost of investments on a tax basis, includes the adjustments for financial reporting purposes, as of the most recently completed Federal income tax reporting period-end.

Income and capital gain distributions are determined in accordance with Federal income tax regulations, which may differ from accounting principles generally accepted in the United States of America. The tax character of distributions paid during the year and the tax components of accumulated earnings/loss will be reported at the Funds' fiscal year end.

Capital loss carryforwards are calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Funds to utilize. The use of some portion of the capital loss carryforward by any one fund may be limited under Internal Revenue Code rules. These rules limit the use of the carryforward when there has been a greater than fifty percent change in ownership of a Fund.

	Year of Expiration
	2011		2012		2013		2014		2015		2016		2017		Total*
Dynamic MagniQuant Portfolio	$	—	$	—	$	—	$	—	$	—	$	5,211,608	$	10,595,808	$	15,807,416
Dynamic Market Portfolio		225,469		8,920,879		5,021,729		13,686,812		65,552,628		39,899,556		96,635,542		229,942,615

58

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

October 31, 2009 (Unaudited)

	Year of Expiration
	2011		2012		2013		2014		2015		2016		2017		Total*
Dynamic OTC Portfolio	$	252,044	$	651,452	$	5,297,385	$	5,449,844	$	21,767,708	$	11,353,752	$	15,759,003	$	60,531,188
FTSE RAFI US 1000 Portfolio		—		—		—		—		44,432		1,148,192		44,806,806		45,999,430
FTSE RAFI US 1500 Small-Mid Portfolio		—		—		—		—		5,818		128,460		8,217,980		8,352,258
NXQ Portfolio		—		—		—		—		—		14,131		126,742		140,873

* Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code.

Note 7. Investment Transactions

For the year ended October 31, 2009, the cost of securities purchased and proceeds from sales of securities, excluding short-term securities, money market funds and in-kind transactions, were as follows:

	Purchases		Sales
Dynamic MagniQuant Portfolio	$	15,427,300	$	16,197,568
Dynamic Market Portfolio		126,139,037		123,852,525
Dynamic OTC Portfolio		24,606,397		25,005,579
FTSE RAFI US 1000 Portfolio		46,509,225		48,584,703
FTSE RAFI US 1500 Small-Mid Portfolio		6,624,324		5,682,912
NXQ Portfolio		948,634		965,572

For the year ended October 31, 2009, in-kind transactions associated with creations and redemptions were as follows:

	Securities Received		Securities Delivered
Dynamic MagniQuant Portfolio	$	19,278,143	$	20,317,647
Dynamic Market Portfolio		229,508,870		261,787,877
Dynamic OTC Portfolio		22,810,320		28,287,436
FTSE RAFI US 1000 Portfolio		42,509,152		45,248,254
FTSE RAFI US 1500 Small-Mid Portfolio		35,447,756		6,746,507
NXQ Portfolio		133,645		160,114

Gains on in-kind transactions are generally not considered taxable gains for Federal income tax purposes.

59

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

October 31, 2009 (Unaudited)

Note 8. Trustees' Fees

The Funds compensate each Trustee who is not an employee of the Adviser or its affiliates. With respect to NXQ Portfolio, the Adviser, as a result of the unitary management fee, pays for such compensation. The "Interested" Trustee of the Trust does not receive any Trustees' fees.

The Trust has adopted a deferred compensation plan (the "Plan"). Under the Plan, a Trustee who is not an "interested person" (as defined in the 1940 Act) (an "Independent Trustee") and has executed a Deferred Fee Agreement (a "Participating Trustee") may defer receipt of all or a portion of his compensation ("Deferral Fees"). Such Deferral Fees are deemed to be invested in selected PowerShares Funds. The Deferral Fees payable to the Participating Trustee are valued as of the date such Deferral Fees would have been paid to the Participating Trustee. The value increases with contributions or with increases in the value of the Shares selected, and the value decreases with distributions or with declines in the value of the Shares selected.

Note 9. Capital

Shares are created and redeemed by the Trust only in Creation Unit size aggregations of 50,000 Shares. Only Authorized Participants are permitted to purchase or redeem Creation Units from the Funds. Such transactions are generally permitted on an in-kind basis, with a balancing cash component to equate the transaction to the NAV per Share of each Fund of the Trust on the transaction date. Cash may be substituted equivalent to the value of certain securities generally when they are not available in sufficient quantity for delivery, not eligible for trading by the Authorized Participant or as a result of other market circumstances.

Note 10. Indemnifications

Under the Trust's organizational documents, its officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust. Each Independent Trustee is also indemnified against certain liabilities arising out of the performance of his duties to the Trust pursuant to an Indemnification Agreement between the Independent Trustee and the Trust. Additionally, in the normal course of business, the Trust enters into contracts with service providers that contain general indemnification clauses. The Trust's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred. However, based on experience, the Trust believes the risk of loss to be remote.

60

PROXY VOTING POLICIES AND PROCEDURES

A description of the Funds' proxy voting policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities is available, without charge and upon request, by calling (800) 337-4246. This information is also available on the Securities and Exchange Commission's ("Commission") website at www.sec.gov.

Information regarding how the Funds voted proxies for portfolio securities, if applicable, during the most recent 12-month period ended June 30, is also available, without charge and upon request, by (i) calling (800)337-4246; or (ii) accessing the Funds' Form N-PX on the Commission's website at www.sec.gov.

QUARTERLY PORTFOLIOS

The Funds file their complete schedules of portfolio holdings with the Commission for the first and third quarters of each fiscal year on Form N-Q. The Funds' Form N-Qs are available on the Commission's website at www.sec.gov. The Funds' Form N-Qs may also be reviewed and copied at the Commission's Public Reference Room in Washington, D.C.; information on the operation of the Public Reference Room may be obtained by calling (800)SEC-0330.

301 West Roosevelt Road
Wheaton, IL 60187

800.983.0903
www.invescopowershares.com

© 2009 Invesco PowerShares Capital Management LLC  P-PS-SAR-2

2009 Semi-Annual Report to Shareholders

October 31, 2009

PowerShares Dynamic Large Cap Growth Portfolio

PowerShares Dynamic Large Cap Portfolio

PowerShares Dynamic Large Cap Value Portfolio

PowerShares Dynamic Mid Cap Growth Portfolio

PowerShares Dynamic Mid Cap Portfolio

PowerShares Dynamic Mid Cap Value Portfolio

PowerShares Dynamic Small Cap Growth Portfolio

PowerShares Dynamic Small Cap Portfolio

PowerShares Dynamic Small Cap Value Portfolio

PowerShares FTSE NASDAQ Small Cap Portfolio

PowerShares Zacks Micro Cap Portfolio

PowerShares Zacks Small Cap Portfolio

Table of Contents

Frequency Distribution of Discounts & Premiums	2
Fees and Expenses	4
Style Portfolios
Schedules of Investments
PowerShares Dynamic Large Cap Growth Portfolio	6
PowerShares Dynamic Large Cap Portfolio	8
PowerShares Dynamic Large Cap Value Portfolio	10
PowerShares Dynamic Mid Cap Growth Portfolio	12
PowerShares Dynamic Mid Cap Portfolio	14
PowerShares Dynamic Mid Cap Value Portfolio	17
PowerShares Dynamic Small Cap Growth Portfolio	19
PowerShares Dynamic Small Cap Portfolio	21
PowerShares Dynamic Small Cap Value Portfolio	24
PowerShares FTSE NASDAQ Small Cap Portfolio	26
PowerShares Zacks Micro Cap Portfolio	36
PowerShares Zacks Small Cap Portfolio	41
Statements of Assets and Liabilities	46
Statements of Operations	48
Statements of Changes in Net Assets	50
Financial Highlights	54
Notes to Financial Statements	60

Frequency Distribution of Discounts & Premiums

Since Inception through October 31, 2009

					Closing Price Above NAV (bps)
Ticker	Fund Name	Inception	Days		0-24		25-49		50-99		100-149		150-199		200+
PWB	PowerShares Dynamic Large Cap Growth Portfolio	03/03/05		1175		593		34		3		1		0		0
PJF	PowerShares Dynamic Large Cap Portfolio	12/01/06		733		263		15		4		2		1		0
PWV	PowerShares Dynamic Large Cap Value Portfolio	03/03/05		1175		658		33		11		1		0		1
PWJ	PowerShares Dynamic Mid Cap Growth Portfolio	03/03/05		1175		512		19		6		0		0		0
PJG	PowerShares Dynamic Mid Cap Portfolio	12/01/06		733		300		25		1		1		1		1
PWP	PowerShares Dynamic Mid Cap Value Portfolio	03/03/05		1175		484		23		5		1		0		2
PWT	PowerShares Dynamic Small Cap Growth Portfolio	03/03/05		1175		518		50		6		4		0		2
PJM	PowerShares Dynamic Small Cap Portfolio	12/01/06		733		262		28		5		1		0		0
PWY	PowerShares Dynamic Small Cap Value Portfolio	03/03/05		1175		538		46		10		1		1		0
PQSC	PowerShares FTSE NASDAQ Small Cap Portfolio	04/03/08		399		156		13		4		0		0		1
PZI	PowerShares Zacks Micro Cap Portfolio	08/18/05		1058		356		50		14		0		1		0
PZJ	PowerShares Zacks Small Cap Portfolio	02/16/06		932		407		24		5		1		0		0

2

	Closing Prices Below NAV (bps)
Ticker	-0-24		-25-49		-50-99		-100-149		-150-199		-200+
PWB		521		20		3		0		0		0
PJF		440		6		2		0		0		0
PWV		452		13		6		0		0		0
PWJ		622		14		2		0		0		0
PJG		395		8		1		0		0		0
PWP		638		16		5		0		1		0
PWT		543		46		5		1		0		0
PJM		404		28		3		2		0		0
PWY		525		45		7		1		1		0
PQSC		208		17		0		0		0		0
PZI		584		46		7		0		0		0
PZJ		470		21		3		1		0		0

3

Fees and Expenses

As a shareholder of a Fund of the PowerShares Exchange-Traded Fund Trust, you incur advisory fees and other Fund expenses. The expense examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other funds.

The example is based on an investment of $1,000 invested at the beginning of the period and held through the six-month period ended October 31, 2009.

Actual Expenses

The first line in the following table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading "Expenses Paid During the Six-Month Period" to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line in the following table provides information about hypothetical account values and hypothetical expenses based on each Fund's actual expense ratio and an assumed annualized rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only, and do not reflect any transactional costs such as sales charges and brokerage commisions. Therefore the second line in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

	Beginning Account Value May 1, 2009		Ending Account Value October 31, 2009		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During the Six-Month Period (1)
PowerShares Dynamic Large Cap Growth Portfolio Actual	$	1,000.00	$	1,205.57		0.62	%	$	3.45
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.08		0.62	%	$	3.16
PowerShares Dynamic Large Cap Portfolio Actual	$	1,000.00	$	1,165.75		0.65	%	$	3.55
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.93		0.65	%	$	3.31
PowerShares Dynamic Large Cap Value Portfolio Actual	$	1,000.00	$	1,161.42		0.63	%	$	3.43
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.03		0.63	%	$	3.21
PowerShares Dynamic Mid Cap Growth Portfolio Actual	$	1,000.00	$	1,118.24		0.63	%	$	3.36
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.03		0.63	%	$	3.21
PowerShares Dynamic Mid Cap Portfolio Actual	$	1,000.00	$	1,161.89		0.65	%	$	3.54
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.93		0.65	%	$	3.31

4

Fees and Expenses (Continued)

	Beginning Account Value May 1, 2009		Ending Account Value October 31, 2009		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During the Six-Month Period (1)
PowerShares Dynamic Mid Cap Value Portfolio Actual	$	1,000.00	$	1,154.98		0.63	%	$	3.42
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.03		0.63	%	$	3.21
PowerShares Dynamic Small Cap Growth Portfolio Actual	$	1,000.00	$	1,067.78		0.63	%	$	3.28
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.03		0.63	%	$	3.21
PowerShares Dynamic Small Cap Portfolio Actual	$	1,000.00	$	1,111.74		0.65	%	$	3.46
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.93		0.65	%	$	3.31
PowerShares Dynamic Small Cap Value Portfolio Actual	$	1,000.00	$	1,133.06		0.63	%	$	3.39
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.03		0.63	%	$	3.21
PowerShares FTSE NASDAQ Small Cap Portfolio Actual	$	1,000.00	$	1,180.44		0.70	%	$	3.85
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.68		0.70	%	$	3.57
PowerShares Zacks Micro Cap Portfolio Actual	$	1,000.00	$	1,097.05		0.70	%	$	3.70
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.68		0.70	%	$	3.57
PowerShares Zacks Small Cap Portfolio Actual	$	1,000.00	$	1,106.26		0.70	%	$	3.72
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.68		0.70	%	$	3.57

(1)  Expenses are calculated using the annualized expense ratio, which represents the ongoing expenses as a percentage of net assets for the six months ended October 31, 2009. Expenses are calculated by multiplying the Fund's annualized expense ratio by the average account value for the period; then multiplying the result by 184 and then dividing the result by 365. Expense ratios for the most recent half-year differ from expenses ratios based on the annualized data in the Financial Highlights.

5

Portfolio Composition

PowerShares Dynamic Large Cap Growth Portfolio

Sector Breakdown (% of the Fund's Net Assets) as of October 31, 2009

Information Technology	32.8
Health Care	19.0
Consumer Discretionary	17.3
Financials	12.3
Industrials	7.7
Consumer Staples	5.0
Energy	3.0
Materials	2.9
Money Market Fund	0.0
Other	0.0

Schedule of Investments

PowerShares Dynamic Large Cap Growth Portfolio

October 31, 2009 (Unaudited)

Number of Shares			Value
		Common Stocks—100.0%
		Consumer Discretionary—17.3%
	96,719	Amazon.com, Inc.*	$	11,491,184
	50,754	Apollo Group, Inc., Class A*		2,898,053
	92,342	Bed Bath & Beyond, Inc.*		3,251,362
	117,185	Coach, Inc.		3,863,590
	444,181	Ford Motor Co.*		3,109,267
	65,287	Kohl's Corp.*		3,735,722
	122,267	Liberty Media Corp.— Entertainment, Series A*		3,768,269
	61,058	NIKE, Inc., Class B		3,796,587
	177,446	Starbucks Corp.*		3,367,925
	93,889	TJX Cos., Inc. (The)		3,506,754
				42,788,713
		Consumer Staples—5.0%
	109,990	Colgate-Palmolive Co.		8,648,514
	101,842	Walgreen Co.		3,852,683
				12,501,197
		Energy—3.0%
	62,734	Anadarko Petroleum Corp.		3,822,382
	37,791	Diamond Offshore Drilling, Inc.		3,599,593
				7,421,975
		Financials—12.3%
	233,758	American Express Co.		8,144,129
	193,447	Charles Schwab Corp. (The)		3,354,371
	36,592	Franklin Resources, Inc.		3,828,621
	186,475	JPMorgan Chase & Co.		7,789,061
	75,020	T. Rowe Price Group, Inc.		3,655,724
	185,418	TD Ameritrade Holding Corp.*		3,578,567
				30,350,473

Number of Shares			Value
		Common Stocks (Continued)
		Health Care—19.0%
	62,263	Allergan, Inc.	$	3,502,294
	134,247	Amgen, Inc.*		7,213,091
	140,933	Baxter International, Inc.		7,618,838
	88,231	Covidien PLC (Ireland)		3,716,290
	47,252	Express Scripts, Inc.*		3,776,380
	176,876	Gilead Sciences, Inc.*		7,526,074
	61,441	Medco Health Solutions, Inc.*		3,448,069
	62,586	Quest Diagnostics, Inc.		3,500,435
	88,282	St. Jude Medical, Inc.*		3,008,650
	83,476	Stryker Corp.		3,839,896
				47,150,017
		Industrials—7.7%
	111,292	3M Co.		8,187,753
	60,447	C.H. Robinson Worldwide, Inc.		3,331,234
	55,681	Danaher Corp.		3,799,115
	81,134	Illinois Tool Works, Inc.		3,725,673
				19,043,775
		Information Technology—32.8%
	108,090	Adobe Systems, Inc.*		3,560,485
	47,053	Apple, Inc.*		8,869,490
	363,779	Cisco Systems, Inc.*		8,312,350
	97,242	Cognizant Technology Solutions Corp., Class A*		3,758,403
	215,584	Corning, Inc.		3,149,682
	152,714	eBay, Inc.*		3,400,941
	212,648	EMC Corp.*		3,502,313
	17,222	Google, Inc., Class A*		9,233,059
	395,217	Intel Corp.		7,552,597
	361,151	Oracle Corp.		7,620,286

See Notes to Financial Statements.

6

Schedule of Investments (Continued)

PowerShares Dynamic Large Cap Growth Portfolio

October 31, 2009 (Unaudited)

Number of Shares			Value
		Common Stocks (Continued)
	169,480	QUALCOMM, Inc.	$	7,018,167
	137,362	Texas Instruments, Inc.		3,221,139
	113,533	Visa, Inc., Class A		8,601,260
	182,744	Western Union Co. (The)		3,320,458
				81,120,630
		Materials—2.9%
	81,542	Ecolab, Inc.		3,584,586
	44,763	Praxair, Inc.		3,555,973
				7,140,559
		Total Common Stocks (Cost $219,995,838)		247,517,339
		Money Market Fund—0.0%
	73,668	Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $73,668)		73,668
		Total Investments (Cost $220,069,506)—100.0%		247,591,007
		Other assets less liabilities—0.0%		3,371
		Net Assets—100.0%	$	247,594,378

*  Non-income producing security.

See Notes to Financial Statements.

7

Portfolio Composition

PowerShares Dynamic Large Cap Portfolio

Sector Breakdown (% of the Fund's Net Assets) as of October 31, 2009

Information Technology	22.3
Consumer Staples	19.8
Consumer Discretionary	17.1
Health Care	11.9
Industrials	9.8
Financials	9.1
Energy	3.3
Telecommunication Services	3.2
Utilities	2.0
Materials	1.5
Other	0.0

Schedule of Investments

PowerShares Dynamic Large Cap Portfolio

October 31, 2009 (Unaudited)

Number of Shares			Value
		Common Stocks—100.0%
		Consumer Discretionary—17.1%
	4,025	Apollo Group, Inc., Class A*	$	229,828
	7,322	Bed Bath & Beyond, Inc.*		257,808
	7,244	Best Buy Co., Inc.		276,576
	9,290	Coach, Inc.		306,291
	83,088	Comcast Corp., Class A		1,184,280
	10,903	DIRECTV Group, Inc. (The)*		286,749
	35,179	Ford Motor Co.*		246,253
	13,644	Gap, Inc. (The)		291,163
	22,915	Home Depot, Inc. (The)		574,937
	11,316	McDonald's Corp.		663,231
	8,091	McGraw-Hill Cos., Inc. (The)		232,859
	4,840	NIKE, Inc., Class B		300,951
	7,371	Omnicom Group, Inc.		252,678
	14,068	Starbucks Corp.*		267,011
	7,444	TJX Cos., Inc. (The)		278,033
	10,804	Viacom, Inc., Class B*		298,082
	23,640	Walt Disney Co. (The)		647,027
				6,593,757
		Consumer Staples—19.8%
	9,502	Archer-Daniels-Midland Co.		286,200
	12,913	Coca-Cola Co. (The)		688,392
	13,169	Coca-Cola Enterprises, Inc.		251,133
	3,738	Colgate-Palmolive Co.		293,919
	13,415	ConAgra Foods, Inc.		281,715
	17,256	CVS Caremark Corp.		609,137
	4,611	General Mills, Inc.		303,957
	7,072	H.J. Heinz Co.		284,577
	6,982	Hershey Co. (The)		263,850
	5,845	Kellogg Co.		301,251
	4,550	Kimberly-Clark Corp.		278,278
	22,389	Kraft Foods, Inc., Class A		616,145

Number of Shares			Value
		Common Stocks (Continued)
	12,485	Kroger Co. (The)	$	288,778
	3,770	Lorillard, Inc.		293,004
	13,988	Philip Morris International, Inc.		662,472
	11,929	Procter & Gamble Co. (The)		691,882
	5,969	Reynolds American, Inc.		289,377
	8,074	Walgreen Co.		305,440
	12,410	Wal-Mart Stores, Inc.		616,529
				7,606,036
		Energy—3.3%
	11,062	Schlumberger Ltd.		688,056
	3,506	Transocean Ltd.*		294,189
	6,973	XTO Energy, Inc.		289,798
				1,272,043
		Financials—9.1%
	5,191	ACE Ltd.		266,610
	7,942	American Express Co.		276,699
	15,338	Charles Schwab Corp. (The)		265,961
	5,542	Chubb Corp. (The)		268,898
	2,902	Franklin Resources, Inc.		303,636
	3,859	Goldman Sachs Group, Inc. (The)		656,686
	14,784	JPMorgan Chase & Co.		617,528
	16,342	Progressive Corp. (The)*		261,472
	5,947	T. Rowe Price Group, Inc.		289,797
	14,699	TD Ameritrade Holding Corp.*		283,691
				3,490,978
		Health Care—11.9%
	4,935	Allergan, Inc.		277,594
	10,644	Amgen, Inc.*		571,902
	3,857	Becton, Dickinson and Co.		263,665
	28,685	Bristol-Myers Squibb Co.		625,333
	6,996	Covidien PLC (Ireland)		294,671

See Notes to Financial Statements.

8

Schedule of Investments (Continued)

PowerShares Dynamic Large Cap Portfolio

October 31, 2009 (Unaudited)

Number of Shares			Value
		Common Stocks (Continued)
	10,524	Johnson & Johnson	$	621,442
	4,837	McKesson Corp.		284,077
	4,871	Medco Health Solutions, Inc.*		273,361
	4,962	Quest Diagnostics, Inc.		277,525
	6,618	Stryker Corp.		304,428
	9,650	UnitedHealth Group, Inc.		250,417
	5,062	WellPoint, Inc.*		236,699
	5,670	Zimmer Holdings, Inc.*		298,072
				4,579,186
		Industrials—9.8%
	8,822	3M Co.		649,034
	4,791	C.H. Robinson Worldwide, Inc.		264,032
	4,415	Danaher Corp.		301,235
	4,550	General Dynamics Corp.		285,285
	6,433	Illinois Tool Works, Inc.		295,403
	5,351	ITT Corp.		271,296
	3,661	L-3 Communications Holdings, Inc.		264,654
	3,628	Lockheed Martin Corp.		249,570
	5,747	Raytheon Co.		260,224
	8,554	Tyco International Ltd. (Switzerland)		286,987
	10,639	United Technologies Corp.		653,767
				3,781,487
		Information Technology—22.3%
	8,570	Adobe Systems, Inc.*		282,296
	3,731	Apple, Inc.*		703,293
	12,032	CA, Inc.		251,709
	28,841	Cisco Systems, Inc.*		659,017
	7,710	Cognizant Technology Solutions Corp., Class A*		297,991
	17,092	Corning, Inc.		249,714
	12,107	eBay, Inc.*		269,623
	16,859	EMC Corp.*		277,668
	1,365	Google, Inc., Class A*		731,804
	14,176	Hewlett-Packard Co.		672,793
	31,334	Intel Corp.		598,793
	5,367	International Business Machines Corp.		647,314
	28,633	Oracle Corp.		604,156
	13,438	QUALCOMM, Inc.		556,468
	17,843	Symantec Corp.*		313,680
	10,890	Texas Instruments, Inc.		255,370
	11,611	Tyco Electronics Ltd. (Switzerland)		246,734
	9,000	Visa, Inc., Class A		681,840
	14,488	Western Union Co. (The)		263,247
				8,563,510
		Materials—1.5%
	3,590	Air Products & Chemicals, Inc.		276,897
	6,465	Ecolab, Inc.		284,201
				561,098

Number of Shares			Value
		Common Stocks (Continued)
		Telecommunication Services—3.2%
	24,209	AT&T, Inc.	$	621,445
	20,455	Verizon Communications, Inc.		605,264
				1,226,709
		Utilities—2.0%
	19,536	AES Corp. (The)*		255,335
	5,384	Exelon Corp.		252,833
	8,466	Public Service Enterprise Group, Inc.		252,287
				760,455
		Total Investments (Cost $36,318,583)—100.0%		38,435,259
		Other assets less liabilities—0.0%		2,409
		Net Assets—100.0%	$	38,437,668

*  Non-income producing security.

See Notes to Financial Statements.

9

Portfolio Composition

PowerShares Dynamic Large Cap Value Portfolio

Sector Breakdown (% of the Fund's Net Assets) as of October 31, 2009

Health Care	22.1
Consumer Discretionary	18.5
Consumer Staples	13.9
Industrials	11.9
Financials	9.1
Utilities	7.0
Telecommunication Services	6.5
Energy	5.0
Information Technology	3.0
Materials	2.9
Money Market Fund	0.0
Other	0.1

Schedule of Investments

PowerShares Dynamic Large Cap Value Portfolio

October 31, 2009 (Unaudited)

Number of Shares			Value
		Common Stocks—99.9%
		Consumer Discretionary—18.5%
	1,391,781	Comcast Corp., Class A	$	19,837,509
	228,553	Gap, Inc. (The)		4,877,321
	383,839	Home Depot, Inc. (The)		9,630,521
	135,527	McGraw-Hill Cos., Inc. (The)		3,900,467
	123,476	Omnicom Group, Inc.		4,232,757
	180,973	Viacom, Inc., Class B*		4,993,045
	395,994	Walt Disney Co. (The)		10,838,356
				58,309,976
		Consumer Staples—13.9%
	250,004	Altria Group, Inc.		4,527,572
	224,718	ConAgra Foods, Inc.		4,719,078
	77,245	General Mills, Inc.		5,091,990
	118,467	H.J. Heinz Co.		4,767,112
	76,222	Kimberly-Clark Corp.		4,661,738
	375,034	Kraft Foods, Inc., Class A		10,320,936
	209,140	Kroger Co. (The)		4,837,408
	99,979	Reynolds American, Inc.		4,846,982
				43,772,816
		Energy—5.0%
	151,576	Exxon Mobil Corp.		10,863,452
	58,730	Transocean Ltd.*		4,928,034
				15,791,486
		Financials—9.1%
	86,961	ACE Ltd.		4,466,317
	92,828	Chubb Corp. (The)		4,504,015
	64,642	Goldman Sachs Group, Inc. (The)		11,000,129
	273,742	Progressive Corp. (The)*		4,379,872
	91,817	Travelers Cos., Inc. (The)		4,571,568
				28,921,901

Number of Shares			Value
		Common Stocks (Continued)
		Health Care—22.1%
	480,491	Bristol-Myers Squibb Co.	$	10,474,704
	316,324	Eli Lilly & Co.		10,758,179
	176,290	Johnson & Johnson		10,409,925
	81,021	McKesson Corp.		4,758,363
	117,793	Medtronic, Inc.		4,205,210
	328,850	Merck & Co., Inc.		10,171,330
	632,270	Pfizer, Inc.		10,767,558
	161,640	UnitedHealth Group, Inc.		4,194,558
	84,792	WellPoint, Inc.*		3,964,874
				69,704,701
		Industrials—11.9%
	104,163	CSX Corp.		4,393,595
	76,208	General Dynamics Corp.		4,778,242
	122,349	Honeywell International, Inc.		4,391,106
	61,321	L-3 Communications Holdings, Inc.		4,432,895
	60,774	Lockheed Martin Corp.		4,180,643
	178,211	United Technologies Corp.		10,951,066
	153,680	Waste Management, Inc.		4,591,958
				37,719,505
		Information Technology—3.0%
	285,942	Dell, Inc.*		4,143,300
	298,887	Symantec Corp.*		5,254,433
				9,397,733
		Materials—2.9%
	139,896	E.I. du Pont de Nemours & Co.		4,451,491
	81,428	PPG Industries, Inc.		4,594,982
				9,046,473

See Notes to Financial Statements.

10

Schedule of Investments (Continued)

PowerShares Dynamic Large Cap Value Portfolio

October 31, 2009 (Unaudited)

Number of Shares			Value
		Common Stocks (Continued)
		Telecommunication Services—6.5%
	405,513	AT&T, Inc.	$	10,409,519
	342,632	Verizon Communications, Inc.		10,138,481
				20,548,000
		Utilities—7.0%
	327,232	AES Corp. (The)*		4,276,922
	137,117	Dominion Resources, Inc.		4,674,319
	90,182	Exelon Corp.		4,234,947
	141,814	Public Service Enterprise Group, Inc.		4,226,057
	89,421	Sempra Energy		4,600,710
				22,012,955
		Total Common Stocks (Cost $301,338,076)		315,225,546
		Money Market Fund—0.0%
	2,339	Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $2,339)		2,339
		Total Investments (Cost $301,340,415)—99.9%		315,227,885
		Other assets less liabilities—0.1%		346,498
		Net Assets—100.0%	$	315,574,383

*  Non-income producing security.

See Notes to Financial Statements.

11

Portfolio Composition

PowerShares Dynamic Mid Cap Growth Portfolio

Sector Breakdown (% of the Fund's Net Assets) as of October 31, 2009

Information Technology	29.2
Health Care	28.3
Consumer Discretionary	19.7
Industrials	9.1
Financials	8.5
Energy	4.0
Materials	0.6
Consumer Staples	0.6
Money Market Fund	0.1
Other	(0.1	)

Schedule of Investments

PowerShares Dynamic Mid Cap Growth Portfolio

October 31, 2009 (Unaudited)

Number of Shares			Value
		Common Stocks—100.0%
		Consumer Discretionary—19.7%
	92,989	Advance Auto Parts, Inc.	$	3,464,770
	17,966	Aeropostale, Inc.*		674,264
	17,587	Bally Technologies, Inc.*		692,752
	8,386	Chipotle Mexican Grill, Inc., Class A*		683,375
	9,536	Chipotle Mexican Grill, Inc., Class B*		762,022
	27,767	Fossil, Inc.*		742,212
	20,115	Guess?, Inc.		735,203
	6,635	ITT Educational Services, Inc.*		599,472
	21,940	John Wiley & Sons, Inc., Class A		772,727
	18,454	Marvel Entertainment, Inc.*		922,146
	16,132	Netflix, Inc.*		862,256
	58,347	Polo Ralph Lauren Corp.		4,342,184
	25,627	Priceline.com, Inc.*		4,043,684
	85,058	Ross Stores, Inc.		3,743,403
	3,310	Strayer Education, Inc.		671,831
	15,006	Tractor Supply Co.*		670,768
	16,737	WMS Industries, Inc.*		669,145
				25,052,214
		Consumer Staples—0.6%
	27,172	Alberto-Culver Co.		728,753
		Energy—4.0%
	16,196	Dril-Quip, Inc.*		786,964
	82,385	FMC Technologies, Inc.*		4,333,451
				5,120,415
		Financials—8.5%
	35,792	Brown & Brown, Inc.		657,499
	281,776	Discover Financial Services		3,984,313
	36,246	Knight Capital Group, Inc., Class A*		610,745
	145,490	Moody's Corp.		3,445,203
	24,040	MSCI, Inc., Class A*		730,816

Number of Shares			Value
		Common Stocks (Continued)
	38,105	SEI Investments Co.	$	665,694
	26,777	Waddell & Reed Financial, Inc., Class A		751,363
				10,845,633
		Health Care—28.3%
	72,124	Bruker Corp.*		781,824
	63,919	Cerner Corp.*		4,860,401
	11,483	Edwards Lifesciences Corp.*		883,502
	15,977	Emergency Medical Services Corp., Class A*		767,216
	55,947	ev3, Inc.*		659,056
	76,229	Henry Schein, Inc.*		4,027,178
	101,382	Hospira, Inc.*		4,525,692
	113,749	Illumina, Inc.*		3,651,343
	56,907	Laboratory Corp. of America Holdings*		3,920,323
	88,907	Life Technologies Corp.*		4,193,743
	8,054	Mettler-Toledo International, Inc.*		785,265
	10,680	Millipore Corp.*		715,667
	26,695	Sirona Dental Systems, Inc.*		718,362
	149,855	Tenet Healthcare Corp.*		767,258
	98,204	Varian Medical Systems, Inc.*		4,024,400
	28,740	VCA Antech, Inc.*		684,587
				35,965,817
		Industrials—9.1%
	20,008	Copart, Inc.*		643,657
	49,882	Heartland Express, Inc.		678,395
	134,236	Iron Mountain, Inc.*		3,279,386
	19,238	Lennox International, Inc.		647,743
	39,938	Rollins, Inc.		722,079
	80,466	Stericycle, Inc.*		4,214,004
	19,047	TransDigm Group, Inc.		746,262
	8,408	Valmont Industries, Inc.		607,646
				11,539,172

See Notes to Financial Statements.

12

Schedule of Investments (Continued)

PowerShares Dynamic Mid Cap Growth Portfolio

October 31, 2009 (Unaudited)

Number of Shares			Value
		Common Stocks (Continued)
		Information Technology—29.2%
	162,484	3Com Corp.*	$	835,168
	31,398	ADTRAN, Inc.		723,410
	113,525	Amphenol Corp., Class A		4,554,623
	113,620	BMC Software, Inc.*		4,222,119
	111,659	Citrix Systems, Inc.*		4,104,585
	20,143	Digital River, Inc.*		459,865
	100,042	Dolby Laboratories, Inc., Class A*		4,195,761
	20,305	F5 Networks, Inc.*		911,491
	12,811	FactSet Research Systems, Inc.		820,545
	55,947	Genpact Ltd.*		666,329
	39,344	Informatica Corp.*		835,273
	30,563	Jack Henry & Associates, Inc.		705,088
	13,372	ManTech International Corp., Class A*		586,496
	99,149	McAfee, Inc.*		4,152,360
	24,724	MICROS Systems, Inc.*		665,570
	30,430	NeuStar, Inc., Class A*		702,933
	30,523	Polycom, Inc.*		655,329
	31,149	Red Hat, Inc.*		803,956
	142,947	RF Micro Devices, Inc.*		568,929
	20,363	Sybase, Inc.*		805,560
	17,665	Syntel, Inc.		632,937
	79,611	TIBCO Software, Inc.*		696,596
	177,026	Xilinx, Inc.		3,850,316
				37,155,239
		Materials—0.6%
	13,017	Walter Energy, Inc.		761,494
		Total Common Stocks (Cost $117,948,773)		127,168,737
		Money Market Fund—0.1%
	131,881	Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $131,881)		131,881
		Total Investments (Cost $118,080,654)—100.1%		127,300,618
		Liabilities in excess of other assets—(0.1%)		(128,231	)
		Net Assets—100.0%	$	127,172,387

*  Non-income producing security.

See Notes to Financial Statements.

13

Portfolio Composition

PowerShares Dynamic Mid Cap Portfolio

Sector Breakdown (% of the Fund's Net Assets) as of October 31, 2009

Information Technology	25.0
Consumer Discretionary	19.7
Industrials	14.7
Health Care	14.3
Consumer Staples	7.7
Materials	7.3
Energy	4.1
Financials	4.0
Telecommunication Services	1.8
Utilities	1.4
Money Market Fund	0.2
Other	(0.2	)

Schedule of Investments

PowerShares Dynamic Mid Cap Portfolio

October 31, 2009 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—19.7%
	2,303	Aaron's, Inc.	$	57,690
	1,422	Advance Auto Parts, Inc.		52,984
	1,512	Bally Technologies, Inc.*		59,558
	820	Chipotle Mexican Grill, Inc., Class B*		65,526
	1,830	Darden Restaurants, Inc.		55,467
	14,270	Discovery Communications, Inc., Class C*		342,765
	19,814	DISH Network Corp., Class A*		344,764
	1,999	Family Dollar Stores, Inc.		56,572
	2,388	Fossil, Inc.*		63,831
	10,336	Garmin Ltd.		312,767
	8,905	Genuine Parts Co.		311,586
	19,221	H&R Block, Inc.		352,513
	570	ITT Educational Services, Inc.*		51,499
	2,513	Jarden Corp.		68,831
	18,235	Mattel, Inc.		345,189
	1,387	Netflix, Inc.*		74,135
	2,134	Priceline.com, Inc.*		336,724
	3,017	Rent-A-Center, Inc.*		55,392
	7,086	Ross Stores, Inc.		311,855
	10,216	Scripps Networks Interactive, Inc., Class A		385,756
	8,463	Service Corp. International		58,141
	5,482	Sherwin-Williams Co. (The)		312,693
	1,291	Tractor Supply Co.*		57,708
	1,639	Tupperware Brands Corp.		73,788
	1,574	Warnaco Group, Inc. (The)*		63,794
				4,271,528

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
		Consumer Staples—7.7%
	2,337	Alberto-Culver Co.	$	62,678
	7,439	Brown-Forman Corp., Class B		363,098
	5,843	Del Monte Foods Co.		63,104
	2,667	Fresh Del Monte Produce, Inc.*		57,901
	9,055	Hormel Foods Corp.		330,145
	7,158	Molson Coors Brewing Co., Class B		350,527
	39,082	Rite Aid Corp.*		50,416
	34,054	Sara Lee Corp.		384,470
				1,662,339
		Energy—4.1%
	646	Core Laboratories NV (Netherlands)		67,378
	8,759	ENSCO International, Inc.		401,075
	6,864	FMC Technologies, Inc.*		361,046
	1,134	Oceaneering International, Inc.*		57,947
				887,446
		Financials—4.0%
	2,375	American Financial Group, Inc.		58,425
	3,078	Brown & Brown, Inc.		56,543
	1,637	Commerce Bancshares, Inc.		62,795
	23,476	Discover Financial Services		331,951
	3,118	Knight Capital Group, Inc., Class A*		52,538
	2,067	MSCI, Inc., Class A*		62,837
	3,277	SEI Investments Co.		57,249
	1,601	StanCorp Financial Group, Inc.		58,773
	1,261	Transatlantic Holdings, Inc.		63,680
	201	Wesco Financial Corp.		65,928
				870,719

See Notes to Financial Statements.

14

Schedule of Investments (Continued)

PowerShares Dynamic Mid Cap Portfolio

October 31, 2009 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
		Health Care—14.3%
	15,758	AmerisourceBergen Corp.	$	349,040
	6,204	Bruker Corp.*		67,251
	6,458	DaVita, Inc.*		342,468
	988	Edwards Lifesciences Corp.*		76,017
	1,374	Emergency Medical Services Corp., Class A*		65,979
	11,476	Forest Laboratories, Inc.*		317,541
	8,790	Health Management Associates, Inc., Class A*		53,619
	6,350	Henry Schein, Inc.*		335,471
	8,446	Hospira, Inc.*		377,029
	1,844	Kinetic Concepts, Inc.*		61,202
	4,741	Laboratory Corp. of America Holdings*		326,607
	1,177	MEDNAX, Inc.*		61,110
	693	Mettler-Toledo International, Inc.*		67,568
	918	Millipore Corp.*		61,515
	1,384	Owens & Minor, Inc.		56,592
	2,296	Sirona Dental Systems, Inc.*		61,785
	1,041	Universal Health Services, Inc., Class B		57,932
	6,555	Waters Corp.*		376,454
				3,115,180
		Industrials—14.7%
	787	Alliant Techsystems, Inc.*		61,213
	2,039	Brady Corp., Class A		55,216
	1,847	Carlisle Cos., Inc.		57,331
	1,721	Copart, Inc.*		55,365
	9,444	Dover Corp.		355,850
	2,553	EMCOR Group, Inc.*		60,302
	2,222	Equifax, Inc.		60,838
	686	Flowserve Corp.		67,372
	5,988	Goodrich Corp.		325,448
	1,542	Hubbell, Inc., Class B		65,581
	11,184	Iron Mountain, Inc.*		273,225
	2,609	KBR, Inc.		53,406
	1,673	Kirby Corp.*		56,548
	1,654	Lennox International, Inc.		55,690
	2,027	Pall Corp.		64,337
	7,980	Rockwell Automation, Inc.		326,781
	7,215	Rockwell Collins, Inc.		363,492
	3,436	Rollins, Inc.		62,123
	5,812	SPX Corp.		306,757
	1,638	TransDigm Group, Inc.		64,177
	723	Valmont Industries, Inc.		52,251
	3,785	W.W. Grainger, Inc.		354,768
				3,198,071
		Information Technology—25.0%
	13,977	3Com Corp.*		71,842
	2,700	ADTRAN, Inc.		62,208

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	7,432	Affiliated Computer Services, Inc., Class A*	$	387,133
	9,458	Amphenol Corp., Class A		379,455
	4,582	Arris Group, Inc.*		47,011
	5,195	AVX Corp.		58,807
	9,466	BMC Software, Inc.*		351,757
	2,978	Broadridge Financial Solutions, Inc.		61,972
	9,303	Citrix Systems, Inc.*		341,978
	6,725	Computer Sciences Corp.*		341,025
	8,382	Compuware Corp.*		59,177
	1,732	Digital River, Inc.*		39,542
	8,334	Dolby Laboratories, Inc., Class A*		349,528
	1,318	DST Systems, Inc.*		54,974
	1,746	F5 Networks, Inc.*		78,378
	6,788	Fiserv, Inc.*		311,365
	4,812	Genpact Ltd.*		57,311
	1,705	Hewitt Associates, Inc., Class A*		60,562
	3,383	Informatica Corp.*		71,821
	5,497	Jabil Circuit, Inc.		73,550
	1,750	Lender Processing Services, Inc.		69,650
	1,150	ManTech International Corp., Class A*		50,439
	8,260	McAfee, Inc.*		345,929
	4,462	NCR Corp.*		45,289
	2,617	NeuStar, Inc., Class A*		60,453
	14,009	Novell, Inc.*		57,297
	3,626	Perot Systems Corp., Class A*		108,562
	6,764	PMC-Sierra, Inc.*		57,629
	2,625	Polycom, Inc.*		56,359
	3,721	Quest Software, Inc.*		62,401
	2,679	Red Hat, Inc.*		69,145
	12,296	RF Micro Devices, Inc.*		48,938
	3,321	SAIC, Inc.*		58,815
	1,751	Sybase, Inc.*		69,270
	2,856	Synopsys, Inc.*		62,832
	1,519	Syntel, Inc.		54,426
	1,573	Tech Data Corp.*		60,450
	9,573	Tellabs, Inc.*		57,629
	2,268	Teradata Corp.*		63,232
	6,848	TIBCO Software, Inc.*		59,920
	9,725	Western Digital Corp.*		327,538
	14,748	Xilinx, Inc.		320,769
				5,426,368
		Materials—7.3%
	1,892	Albemarle Corp.		59,749
	1,764	AptarGroup, Inc.		62,287
	6,851	Ball Corp.		337,960
	2,306	Bemis Co., Inc.		59,564
	1,697	International Flavors & Fragrances, Inc.		64,639
	9,616	Owens-Illinois, Inc.*		306,558
	3,001	Packaging Corp. of America		54,858

See Notes to Financial Statements.

15

Schedule of Investments (Continued)

PowerShares Dynamic Mid Cap Portfolio

October 31, 2009 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	2,446	Pactiv Corp.*	$	56,478
	1,182	Rock-Tenn Co., Class A		51,772
	6,521	Sigma-Aldrich Corp.		338,636
	1,243	Silgan Holdings, Inc.		66,811
	2,356	Sonoco Products Co.		63,023
	2,277	Valspar Corp. (The)		57,767
				1,580,102
		Telecommunication Services—1.8%
	1,894	CenturyTel, Inc.		61,479
	88,847	Qwest Communications International, Inc.		318,961
				380,440
		Utilities—1.4%
	1,792	AGL Resources, Inc.		62,648
	1,757	Amerigas Partners LP		64,587
	1,415	Energen Corp.		62,090
	1,911	NSTAR		59,146
	1,509	Suburban Propane Partners LP		64,917
				313,388
		Total Common Stocks and Other Equity Interests (Cost $19,524,453)		21,705,581
		Money Market Fund—0.2%
	38,411	Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $38,411)		38,411
		Total Investments (Cost $19,562,864)—100.2%		21,743,992
		Liabilities in excess of other assets—(0.2%)		(36,755	)
		Net Assets—100.0%	$	21,707,237

*  Non-income producing security.

See Notes to Financial Statements.

16

Portfolio Composition

PowerShares Dynamic Mid Cap Value Portfolio

Sector Breakdown (% of the Fund's Net Assets) as of October 31, 2009

Consumer Discretionary	23.3
Information Technology	16.2
Consumer Staples	15.8
Industrials	10.2
Health Care	8.8
Financials	8.6
Materials	7.5
Telecommunication Services	4.2
Utilities	3.5
Energy	1.9
Money Market Fund	0.1
Other	(0.1	)

Schedule of Investments

PowerShares Dynamic Mid Cap Value Portfolio

October 31, 2009 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—23.3%
	9,162	Aaron's, Inc.	$	229,508
	7,281	Darden Restaurants, Inc.		220,687
	81,378	DISH Network Corp., Class A*		1,415,977
	42,451	Garmin Ltd.		1,284,567
	36,577	Genuine Parts Co.		1,279,829
	78,943	H&R Block, Inc.		1,447,815
	9,995	Jarden Corp.*		273,763
	74,893	Mattel, Inc.		1,417,725
	15,707	RadioShack Corp.		265,291
	12,005	Rent-A-Center, Inc.*		220,412
	33,666	Service Corp. International		231,285
	22,518	Sherwin-Williams Co. (The)		1,284,427
	6,260	Warnaco Group, Inc. (The)*		253,718
				9,825,004
		Consumer Staples—15.8%
	30,551	Brown-Forman Corp., Class B		1,491,194
	23,245	Del Monte Foods Co.		251,046
	51,716	Dr Pepper Snapple Group, Inc.*		1,409,778
	10,612	Fresh Del Monte Produce, Inc.*		230,387
	6,616	Hormel Foods Corp.		241,219
	29,398	Molson Coors Brewing Co., Class B		1,439,620
	139,861	Sara Lee Corp.		1,579,031
				6,642,275
		Energy—1.9%
	2,571	Core Laboratories NV (Netherlands)		268,155
	3,151	SEACOR Holdings, Inc.*		256,082
	5,221	World Fuel Services Corp.		265,488
				789,725

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
		Financials—8.6%
	9,449	American Financial Group, Inc.	$	232,445
	9,647	Aspen Insurance Holdings Ltd. (Bermuda)		248,893
	9,190	HCC Insurance Holdings, Inc.		242,524
	47,508	Principal Financial Group, Inc.		1,189,600
	6,371	StanCorp Financial Group, Inc.		233,880
	5,016	Transatlantic Holdings, Inc.		253,308
	60,576	Unum Group		1,208,491
				3,609,141
		Health Care—8.8%
	64,718	AmerisourceBergen Corp.		1,433,504
	47,133	Forest Laboratories, Inc.*		1,304,170
	34,968	Health Management Associates, Inc., Class A*		213,305
	7,339	Kinetic Concepts, Inc.*		243,581
	4,142	Universal Health Services, Inc., Class B		230,502
	11,820	Warner Chilcott PLC, Class A (Ireland)*		261,813
				3,686,875
		Industrials—10.2%
	3,132	Alliant Techsystems, Inc.*		243,607
	8,112	Brady Corp., Class A		219,673
	7,350	Carlisle Cos., Inc.		228,144
	10,157	EMCOR Group, Inc.*		239,908
	8,839	Equifax, Inc.		242,012
	2,729	Flowserve Corp.		268,015
	24,593	Goodrich Corp.		1,336,629
	6,139	Hubbell, Inc., Class B		261,092
	23,873	SPX Corp.		1,260,017
				4,299,097

See Notes to Financial Statements.

17

Schedule of Investments (Continued)

PowerShares Dynamic Mid Cap Value Portfolio

October 31, 2009 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
		Information Technology—16.2%
	5,430	Affiliated Computer Services, Inc., Class A*	$	282,849
	11,848	Broadridge Financial Solutions, Inc.		246,557
	27,623	Computer Sciences Corp.*		1,400,762
	5,242	DST Systems, Inc.*		218,644
	9,873	Fidelity National Information Services, Inc.		214,837
	27,881	Fiserv, Inc.*		1,278,901
	17,751	NCR Corp.*		180,173
	55,726	Novell, Inc.*		227,919
	97,862	Seagate Technology (Cayman Islands)		1,365,175
	6,258	Tech Data Corp.*		240,495
	154,335	Xerox Corp.		1,160,599
				6,816,911
		Materials—7.5%
	5,005	Ball Corp.		246,897
	9,176	Bemis Co., Inc.		237,016
	9,625	Crown Holdings, Inc.*		256,506
	6,754	International Flavors & Fragrances, Inc.		257,260
	39,493	Owens-Illinois, Inc.*		1,259,037
	11,941	Packaging Corp. of America		218,281
	4,706	Rock-Tenn Co., Class A		206,123
	9,373	Sonoco Products Co.		250,728
	9,060	Valspar Corp. (The)		229,852
				3,161,700
		Telecommunication Services—4.2%
	7,533	CenturyTel, Inc.		244,521
	364,905	Qwest Communications International, Inc.		1,310,009
	6,450	United States Cellular Corp.*		236,135
				1,790,665
		Utilities—3.5%
	7,132	AGL Resources, Inc.		249,335
	6,993	Amerigas Partners LP		257,063
	5,632	Energen Corp.		247,132
	7,600	NSTAR		235,220
	6,004	Suburban Propane Partners LP		258,292
	9,420	UGI Corp.		224,949
				1,471,991
		Total Common Stocks and Other Equity Interests (Cost $40,221,919)		42,093,384

Number of Shares			Value
		Money Market Fund—0.1%
	44,271	Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $44,271)	$	44,271
		Total Investments (Cost $40,266,190)—100.1%		42,137,655
		Liabilities in excess of other assets—(0.1%)		(40,453	)
		Net Assets—100.0%	$	42,097,202

*  Non-income producing security.

See Notes to Financial Statements.

18

Portfolio Composition

PowerShares Dynamic Small Cap Growth Portfolio

Sector Breakdown (% of the Fund's Net Assets) as of October 31, 2009

Information Technology	40.6
Health Care	16.8
Consumer Discretionary	15.8
Financials	9.7
Industrials	8.1
Telecommunication Services	2.9
Utilities	2.2
Consumer Staples	2.1
Materials	1.3
Energy	0.5
Money Market Fund	0.1
Other	(0.1	)

Schedule of Investments

PowerShares Dynamic Small Cap Growth Portfolio

October 31, 2009 (Unaudited)

Number of Shares			Value
		Common Stocks—100.0%
		Consumer Discretionary—15.8%
	54,296	99 Cents Only Stores*	$	617,346
	2,435	Blue Nile, Inc.*		146,222
	9,579	California Pizza Kitchen, Inc.*		124,431
	11,838	Capella Education Co.*		815,638
	40,598	Cheesecake Factory, Inc. (The)*		738,072
	7,778	hhgregg, Inc.*		128,259
	13,137	Isle of Capri Casinos, Inc.*		101,812
	18,385	Knology, Inc.*		184,769
	6,275	Lumber Liquidators, Inc.*		133,344
	5,319	Monro Muffler Brake, Inc.		164,836
	4,258	P.F. Chang's China Bistro, Inc.*		124,291
	7,675	PetMed Express, Inc.		120,421
	2,949	Pre-Paid Legal Services, Inc.*		116,603
	11,057	Stein Mart, Inc.*		105,041
	4,303	Steven Madden Ltd.*		174,271
	13,508	Texas Roadhouse, Inc.*		127,921
	5,947	True Religion Apparel, Inc.*		153,254
	11,789	Ulta Salon Cosmetics & Fragrance, Inc.*		178,485
	52,931	World Wrestling Entertainment, Inc., Class A		702,924
				4,957,940
		Consumer Staples—2.1%
	27,785	United Natural Foods, Inc.*		669,896
		Energy—0.5%
	14,256	Resolute Energy Corp.*		151,684
		Financials—9.7%
	17,958	Broadpoint Gleacher Securities, Inc.*		114,392
	4,439	Credit Acceptance Corp.*		152,568

Number of Shares			Value
		Common Stocks (Continued)
	7,533	eHealth, Inc.*	$	107,195
	16,980	GAMCO Investors, Inc., Class A		716,386
	4,813	KBW, Inc.*		134,764
	12,377	MarketAxess Holdings, Inc.*		147,039
	75,495	Ocwen Financial Corp.*		825,160
	45,144	optionsXpress Holdings, Inc.		705,601
	2,799	Piper Jaffray Cos.*		129,846
				3,032,951
		Health Care—16.8%
	17,054	Affymetrix, Inc.*		89,192
	49,508	American Medical Systems Holdings, Inc.*		763,413
	4,253	Bio-Reference Labs, Inc.*		137,500
	26,119	Catalyst Health Solutions, Inc.*		819,353
	36,042	Cubist Pharmaceuticals, Inc.*		610,552
	12,518	Dionex Corp.*		849,722
	3,681	ICU Medical, Inc.*		128,835
	7,658	Merit Medical Systems, Inc.*		130,033
	3,632	MWI Veterinary Supply, Inc.*		128,573
	83,661	PDL BioPharma, Inc.		703,589
	37,747	PSS World Medical, Inc.*		763,244
	6,591	RehabCare Group, Inc.*		123,581
				5,247,587
		Industrials—8.1%
	5,239	Advisory Board Co. (The)*		129,089
	4,874	Aerovironment, Inc.*		129,941
	5,909	Applied Signal Technology, Inc.		121,075
	6,881	Argon ST, Inc.*		127,987
	3,868	Badger Meter, Inc.		144,160
	21,238	Cubic Corp.		737,171
	5,472	Exponent, Inc.*		142,327

See Notes to Financial Statements.

19

Schedule of Investments (Continued)

PowerShares Dynamic Small Cap Growth Portfolio

October 31, 2009 (Unaudited)

Number of Shares			Value
		Common Stocks (Continued)
	21,220	Great Lakes Dredge & Dock Corp.	$	130,079
	10,435	Harbin Electric, Inc.*		166,230
	4,808	HEICO Corp., Class A		148,375
	8,162	Marten Transport Ltd.*		143,161
	4,757	Raven Industries, Inc.		117,498
	6,587	Sykes Enterprises, Inc.*		156,375
	5,419	Tennant Co.		144,470
				2,537,938
		Information Technology—40.6%
	16,787	Acme Packet, Inc.*		164,345
	19,606	Advent Software, Inc.*		749,341
	34,235	Art Technology Group, Inc.*		141,048
	7,857	AsiaInfo Holdings, Inc.*		173,325
	3,970	Cabot Microelectronics Corp.*		126,961
	73,732	Cogent, Inc.*		711,514
	7,575	CommVault Systems, Inc.*		149,227
	48,217	Cybersource Corp.*		789,794
	6,747	DealerTrack Holdings, Inc.*		111,191
	19,305	Deltek, Inc.*		138,031
	6,754	Diodes, Inc.*		110,631
	11,146	ExlService Holdings, Inc.*		151,697
	32,240	FEI Co.*		767,634
	5,940	Forrester Research, Inc.*		150,460
	21,944	Hittite Microwave Corp.*		807,539
	20,500	iGate Corp.		181,015
	18,758	Internet Brands, Inc., Class A*		139,560
	22,527	Isilon Systems, Inc.*		118,267
	34,235	j2 Global Communications, Inc.*		700,106
	25,272	Kulicke & Soffa Industries, Inc.*		117,515
	17,550	Micrel, Inc.		131,099
	4,987	Multi-Fineline Electronix, Inc.*		135,896
	4,609	NCI, Inc., Class A*		124,028
	18,265	NIC, Inc.		160,001
	24,216	Pegasystems, Inc.		694,273
	31,218	Plantronics, Inc.		752,666
	29,220	Plexus Corp.*		739,266
	12,763	Radiant Systems, Inc.*		125,588
	10,627	RightNow Technologies, Inc.*		162,168
	41,487	Semtech Corp.*		641,804
	11,740	SuccessFactors, Inc.*		179,505
	12,942	Synchronoss Technologies, Inc.*		147,668
	43,788	TeleTech Holdings, Inc.*		783,367
	101,197	TriQuint Semiconductor, Inc.*		545,452
	7,857	Volterra Semiconductor Corp.*		108,819
	24,017	Wright Express Corp.*		670,314
	11,992	Zoran Corp.*		106,369
				12,707,484

Number of Shares			Value
		Common Stocks (Continued)
		Materials—1.3%
	5,542	Balchem Corp.	$	152,904
	13,830	Wausau Paper Corp.		121,289
	8,797	Zep, Inc.		150,429
				424,622
		Telecommunication Services—2.9%
	14,198	Cogent Communications Group, Inc.*		143,826
	12,235	Global Crossing Ltd.*		139,479
	29,713	Neutral Tandem, Inc.*		626,647
				909,952
		Utilities—2.2%
	63,641	PNM Resources, Inc.		682,232
		Total Common Stocks (Cost $30,365,329)		31,322,286
		Money Market Fund—0.1%
	24,607	Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $24,607)		24,607
		Total Investments (Cost $30,389,936)—100.1%		31,346,893
		Liabilities in excess of other assets—(0.1%)		(45,425	)
		Net Assets—100.0%	$	31,301,468

*  Non-income producing security.

See Notes to Financial Statements.

20

Portfolio Composition

PowerShares Dynamic Small Cap Portfolio

Sector Breakdown (% of the Fund's Net Assets) as of October 31, 2009

Consumer Discretionary	20.5
Information Technology	20.4
Financials	15.3
Industrials	12.9
Health Care	10.7
Materials	7.1
Consumer Staples	7.1
Energy	3.6
Telecommunication Services	2.4
Money Market Fund	0.1
Other	(0.1	)

Schedule of Investments

PowerShares Dynamic Small Cap Portfolio

October 31, 2009 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—20.5%
	2,730	Asbury Automotive Group, Inc.*	$	26,590
	637	Blue Nile, Inc.*		38,252
	1,316	Bob Evans Farms, Inc.		34,571
	10,618	Cheesecake Factory, Inc. (The)*		193,035
	947	Churchill Downs, Inc.		29,717
	3,765	CKE Restaurants, Inc.		32,944
	1,266	Cracker Barrel Old Country Store, Inc.		41,968
	2,192	Dress Barn, Inc.*		39,566
	2,714	Fred's, Inc., Class A		32,134
	2,698	Harte-Hanks, Inc.		31,674
	9,853	Hillenbrand, Inc.		196,863
	11,264	Iconix Brand Group, Inc.*		131,338
	3,437	Isle of Capri Casinos, Inc.*		26,637
	12,139	Jones Apparel Group, Inc.		217,167
	820	Jos. A. Bank Clothiers, Inc.*		33,604
	4,810	Knology, Inc.*		48,340
	6,348	Life Time Fitness, Inc.*		136,799
	2,270	Maidenform Brands, Inc.*		31,871
	7,546	Men's Wearhouse, Inc. (The)		174,841
	2,524	NutriSystem, Inc.		54,316
	1,114	P.F. Chang's China Bistro, Inc.*		32,518
	1,531	Papa John's International, Inc.*		34,447
	2,008	PetMed Express, Inc.		31,506
	5,071	Polaris Industries, Inc.		213,337
	8,068	Pool Corp.		157,971
	772	Pre-Paid Legal Services, Inc.*		30,525
	4,817	Ruby Tuesday, Inc.*		32,081
	27,533	Sally Beauty Holdings, Inc.*		185,848
	1,470	Scholastic Corp.		36,559

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	2,672	Sonic Automotive, Inc., Class A	$	23,888
	2,893	Stein Mart, Inc.*		27,483
	1,078	Steiner Leisure Ltd.*		39,843
	1,126	Steven Madden Ltd.*		45,603
	13,198	Tempur-Pedic International, Inc.*		255,645
	3,085	Ulta Salon Cosmetics & Fragrance, Inc.*		46,707
	875	UniFirst Corp.		36,811
	5,829	Vail Resorts, Inc.*		200,751
	2,310	Valassis Communications, Inc.*		42,111
	8,158	Wolverine World Wide, Inc.		208,682
	13,843	World Wrestling Entertainment, Inc., Class A		183,835
				3,418,378
		Consumer Staples—7.1%
	9,570	Alliance One International, Inc.*		42,204
	1,205	American Italian Pasta Co., Class A*		32,740
	3,894	B&G Foods, Inc., Class A		30,412
	2,875	Central Garden & Pet Co.*		28,520
	3,193	Central Garden & Pet Co., Class A*		30,206
	3,215	Chattem, Inc.*		203,734
	823	J & J Snack Foods Corp.		32,237
	3,937	Lancaster Colony Corp.		191,259
	11,406	Nu Skin Enterprises, Inc., Class A		259,601
	864	Sanderson Farms, Inc.		31,614
	7,267	United Natural Foods, Inc.*		175,207
	983	Universal Corp.		40,883
	1,327	WD-40 Co.		41,787
	1,155	Weis Markets, Inc.		40,887
				1,181,291

See Notes to Financial Statements.

21

Schedule of Investments (Continued)

PowerShares Dynamic Small Cap Portfolio

October 31, 2009 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
		Energy—3.6%
	3,306	Cal Dive International, Inc.*	$	25,390
	3,715	CVR Energy, Inc.*		39,082
	10,839	Duncan Energy Partners LP		224,476
	3,677	Global Industries Ltd.*		26,805
	1,190	Gulfmark Offshore, Inc.*		32,927
	1,871	Pioneer Southwest Energy Partners LP		39,647
	5,405	TC Pipelines LP		211,173
				599,500
		Financials—15.3%
	6,270	Advance America Cash Advance Centers, Inc.		30,974
	1,164	American Physicians Capital, Inc.		32,918
	2,123	AMERISAFE, Inc.*		39,361
	5,579	Argo Group International Holdings Ltd. (Bermuda)*		189,463
	4,698	Broadpoint Gleacher Securities, Inc.*		29,926
	2,187	CNA Surety Corp.*		31,624
	1,335	Community Trust Bancorp, Inc.		32,868
	1,161	Credit Acceptance Corp.*		39,904
	8,472	Delphi Financial Group, Inc., Class A		183,842
	2,114	Dollar Financial Corp.*		39,680
	1,971	eHealth, Inc.*		28,047
	1,911	First Cash Financial Services, Inc.*		32,831
	3,958	First Financial Bankshares, Inc.		191,765
	4,441	GAMCO Investors, Inc., Class A		187,366
	5,108	GFI Group, Inc.		26,306
	1,119	Harleysville Group, Inc.		35,058
	3,865	Hercules Technology Growth Capital, Inc.		36,254
	8,202	Investment Technology Group, Inc.*		176,917
	1,259	KBW, Inc.*		35,252
	4,569	Meadowbrook Insurance Group, Inc.		30,749
	4,512	National Financial Partners Corp.		36,773
	19,745	Ocwen Financial Corp.*		215,813
	14,470	OneBeacon Insurance Group Ltd., Class A		172,482
	11,807	optionsXpress Holdings, Inc.		184,543
	9,242	PHH Corp.*		149,351
	3,881	Provident New York Bancorp		33,105
	3,711	Retail Opportunity Investments Corp.*		38,409
	3,760	RLI Corp.		188,000
	819	Tompkins Financial Corp.		35,520
	5,044	TradeStation Group, Inc.*		38,940
	1,380	World Acceptance Corp.*		34,624
				2,558,665
		Health Care—10.7%
	1,049	Air Methods Corp.*		32,036
	12,948	American Medical Systems Holdings, Inc.*		199,658
	1,755	AmSurg Corp.*		36,978
	4,516	Chemed Corp.		204,665
	1,207	Corvel Corp.*		34,400

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	3,274	Dionex Corp.*	$	222,239
	12,864	Healthsouth Corp.*		187,943
	2,664	Healthspring, Inc.*		38,175
	1,688	Invacare Corp.		37,862
	6,022	Magellan Health Services, Inc.*		193,487
	950	MWI Veterinary Supply, Inc.*		33,630
	2,761	Odyssey HealthCare, Inc.*		38,488
	1,777	Par Pharmaceutical Cos., Inc.*		37,264
	21,881	PDL BioPharma, Inc.		184,019
	9,872	PSS World Medical, Inc.*		199,612
	1,724	RehabCare Group, Inc.*		32,325
	3,235	Symmetry Medical, Inc.*		25,783
	3,940	Universal American Financial Corp.*		39,400
				1,777,964
		Industrials—12.9%
	5,125	A.O. Smith Corp.		203,104
	1,712	AAON, Inc.		30,833
	1,371	Advisory Board Co. (The)*		33,781
	2,653	Apogee Enterprises, Inc.		35,126
	1,546	Applied Signal Technology, Inc.		31,678
	1,653	ATC Technology Corp.*		34,548
	1,009	AZZ, Inc.*		34,568
	1,012	Badger Meter, Inc.		37,717
	1,843	Chart Industries, Inc.*		36,436
	8,457	Crane Co.		235,527
	5,554	Cubic Corp.		192,779
	2,130	Deluxe Corp.		30,310
	1,725	Dollar Thrifty Automotive Group, Inc.*		31,930
	3,157	Dycom Industries, Inc.*		31,191
	11,459	DynCorp International, Inc., Class A*		194,803
	1,733	EnerSys*		38,299
	1,432	Exponent, Inc.*		37,246
	5,552	Great Lakes Dredge & Dock Corp.		34,034
	2,132	Interline Brands, Inc.*		31,127
	1,193	LB Foster Co., Class A*		33,499
	1,068	Michael Baker Corp.*		38,128
	7,389	Mine Safety Appliances Co.		188,346
	955	Powell Industries, Inc.*		35,125
	1,723	Sykes Enterprises, Inc.*		40,904
	1,418	Tennant Co.		37,804
	2,492	Textainer Group Holdings Ltd.		37,530
	4,288	United Stationers, Inc.*		202,136
	6,862	Watts Water Technologies, Inc., Class A		193,852
				2,142,361
		Information Technology—20.4%
	4,392	Acme Packet, Inc.*		42,998
	941	Advent Software, Inc.*		35,965
	8,957	Art Technology Group, Inc.*		36,903
	11,935	Benchmark Electronics, Inc.*		200,508
	1,039	Cabot Microelectronics Corp.*		33,227

See Notes to Financial Statements.

22

Schedule of Investments (Continued)

PowerShares Dynamic Small Cap Portfolio

October 31, 2009 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	2,343	CSG Systems International, Inc.*	$	38,285
	12,611	Cybersource Corp.*		206,568
	4,309	EarthLink, Inc.		34,903
	8,421	Euronet Worldwide, Inc.*		199,157
	1,559	Fair Isaac Corp.		31,694
	1,554	Forrester Research, Inc.*		39,363
	5,044	Global Cash Access Holdings, Inc.*		31,929
	5,739	Hittite Microwave Corp.*		211,195
	2,461	i2 Technologies, Inc.*		38,736
	5,364	iGate Corp.		47,364
	8,954	j2 Global Communications, Inc.*		183,109
	1,855	JDA Software Group, Inc.*		36,803
	1,716	Loral Space & Communications, Inc.*		45,337
	865	MAXIMUS, Inc.		40,015
	589	MicroStrategy, Inc., Class A*		51,402
	5,136	ModusLink Global Solutions, Inc.*		42,218
	1,305	Multi-Fineline Electronix, Inc.*		35,561
	1,206	NCI, Inc., Class A*		32,453
	2,076	NETGEAR, Inc.*		37,845
	4,779	NIC, Inc.		41,864
	8,165	Plantronics, Inc.		196,858
	7,642	Plexus Corp.*		193,343
	1,606	Progress Software Corp.*		37,099
	3,339	Radiant Systems, Inc.*		32,856
	2,780	RightNow Technologies, Inc.*		42,423
	5,612	S1 Corp.*		33,672
	1,265	ScanSource, Inc.*		32,118
	10,850	Semtech Corp.*		167,849
	4,760	SonicWALL, Inc.*		37,794
	9,843	SRA International, Inc., Class A*		184,655
	3,071	SuccessFactors, Inc.*		46,956
	1,199	SYNNEX Corp.*		30,850
	11,452	TeleTech Holdings, Inc.*		204,876
	1,384	TNS, Inc.*		39,112
	26,467	TriQuint Semiconductor, Inc.*		142,657
	2,056	Volterra Semiconductor Corp.*		28,476
	6,281	Wright Express Corp.*		175,303
				3,402,299
		Materials—7.1%
	1,450	Balchem Corp.*		40,006
	2,312	Bway Holding Co.*		41,084
	785	Clearwater Paper Corp.*		35,537
	3,576	Glatfelter		37,798
	16,308	Graphic Packaging Holding Co.*		37,345
	9,858	H.B. Fuller Co.		188,386
	1,318	Koppers Holdings, Inc.		34,426
	2,297	LSB Industries, Inc.*		28,483
	2,364	NewMarket Corp.		221,034
	720	Schweitzer-Mauduit International, Inc.		37,188
	7,555	Sensient Technologies Corp.		191,066

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	686	Stepan Co.	$	39,267
	11,472	W.R. Grace & Co.*		251,122
				1,182,742
		Telecommunication Services—2.4%
	778	Atlantic Tele-Network, Inc.		35,664
	3,201	Global Crossing Ltd.*		36,491
	2,151	iPCS, Inc.*		51,344
	3,869	Premiere Global Services, Inc.*		28,902
	2,089	Shenandoah Telecommunications Co.		34,865
	10,898	Syniverse Holdings, Inc.*		186,683
	2,789	USA Mobility, Inc.		30,400
				404,349
		Total Common Stocks and Other Equity Interests (Cost $15,872,952)		16,667,549
		Money Market Fund—0.1%
	25,715	Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $25,715)		25,715
		Total Investments (Cost $15,898,667)—100.1%		16,693,264
		Liabilities in excess of other assets—(0.1%)		(23,897	)
		Net Assets—100.0%	$	16,669,367

*  Non-income producing security.

See Notes to Financial Statements.

23

Portfolio Composition

PowerShares Dynamic Small Cap Value Portfolio

Sector Breakdown (% of the Fund's Net Assets) as of October 31, 2009

Consumer Discretionary	24.5
Industrials	15.9
Financials	13.2
Health Care	10.3
Energy	10.2
Materials	8.2
Consumer Staples	5.2
Utilities	4.7
Information Technology	4.3
Telecommunication Services	3.3
Money Market Fund	0.0
Other	0.2

Schedule of Investments

PowerShares Dynamic Small Cap Value Portfolio

October 31, 2009 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—99.8%
		Consumer Discretionary—24.5%
	21,414	Asbury Automotive Group, Inc.*	$	208,572
	10,323	Bob Evans Farms, Inc.		271,185
	94,862	Cabela's, Inc.*		1,192,415
	29,527	CKE Restaurants, Inc.		258,361
	9,931	Cracker Barrel Old Country Store, Inc.		329,213
	17,192	Dress Barn, Inc.*		310,316
	21,285	Fred's, Inc., Class A		252,014
	34,462	Gymboree Corp.*		1,467,047
	21,159	Harte-Hanks, Inc.		248,407
	77,181	Hillenbrand, Inc.		1,542,076
	95,094	Jones Apparel Group, Inc.		1,701,232
	6,432	Jos. A. Bank Clothiers, Inc.*		263,583
	59,112	Men's Wearhouse, Inc. (The)		1,369,625
	19,794	NutriSystem, Inc.		425,967
	39,726	Polaris Industries, Inc.		1,671,273
	37,778	Ruby Tuesday, Inc.*		251,601
	215,679	Sally Beauty Holdings, Inc.*		1,455,833
	11,533	Scholastic Corp.		286,826
	20,957	Sonic Automotive, Inc., Class A		187,356
	8,454	Steiner Leisure Ltd.*		312,460
	6,866	UniFirst Corp.		288,853
	45,659	Vail Resorts, Inc.*		1,572,496
	18,121	Valassis Communications, Inc.*		330,346
				16,197,057
		Consumer Staples—5.2%
	75,059	Alliance One International, Inc.*		331,010
	9,450	American Italian Pasta Co., Class A*		256,757
	30,538	B&G Foods, Inc., Class A		238,502

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	22,548	Central Garden & Pet Co.*	$	223,676
	25,042	Central Garden & Pet Co., Class A*		236,897
	30,842	Lancaster Colony Corp.		1,498,304
	7,707	Universal Corp.		320,534
	9,060	Weis Markets, Inc.		320,724
				3,426,404
		Energy—10.2%
	25,930	Cal Dive International, Inc.*		199,142
	191,714	Cheniere Energy Partners LP		2,047,505
	29,134	CVR Energy, Inc.*		306,490
	84,903	Duncan Energy Partners LP		1,758,341
	28,840	Global Industries Ltd.*		210,244
	9,333	Gulfmark Offshore, Inc.*		258,244
	14,672	Pioneer Southwest Energy Partners LP		310,900
	42,337	TC Pipelines LP		1,654,107
				6,744,973
		Financials—13.2%
	49,176	Advance America Cash Advance Centers, Inc.		242,929
	9,127	American Physicians Capital, Inc.		258,112
	16,651	AMERISAFE, Inc.*		308,710
	43,706	Argo Group International Holdings Ltd. (Bermuda)*		1,484,256
	17,151	CNA Surety Corp.*		248,003
	66,362	Delphi Financial Group, Inc., Class A		1,440,055
	16,582	Dollar Financial Corp.*		311,244
	8,778	Harleysville Group, Inc.		275,015
	11,801	Investment Technology Group, Inc.*		254,548
	35,832	Meadowbrook Insurance Group, Inc.		241,149

See Notes to Financial Statements.

24

Schedule of Investments (Continued)

PowerShares Dynamic Small Cap Value Portfolio

October 31, 2009 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	113,349	OneBeacon Insurance Group Ltd., Class A	$	1,351,120
	13,297	PHH Corp.*		214,880
	29,450	RLI Corp.		1,472,500
	6,422	Tompkins Financial Corp.		278,522
	39,560	TradeStation Group, Inc.*		305,403
				8,686,446
		Health Care—10.3%
	13,765	AmSurg Corp.*		290,028
	16,289	Centene Corp.*		290,433
	6,497	Chemed Corp.		294,444
	55,719	Cooper Cos., Inc. (The)		1,560,689
	20,895	Healthspring, Inc.*		299,425
	75,200	Hill-Rom Holdings, Inc.		1,473,168
	47,172	Magellan Health Services, Inc.*		1,515,636
	21,657	Odyssey HealthCare, Inc.*		301,899
	13,941	Par Pharmaceutical Cos., Inc.*		292,343
	25,376	Symmetry Medical, Inc.*		202,247
	30,902	Universal American Financial Corp.*		309,020
				6,829,332
		Industrials—15.9%
	40,147	A.O. Smith Corp.		1,591,026
	20,804	Apogee Enterprises, Inc.		275,445
	58,270	Brink's Co. (The)		1,382,747
	14,456	Chart Industries, Inc.*		285,795
	66,250	Crane Co.		1,845,062
	16,709	Deluxe Corp.		237,769
	16,719	Interline Brands, Inc.*		244,097
	57,879	Mine Safety Appliances Co.		1,475,336
	33,590	United Stationers, Inc.*		1,583,433
	62,216	WESCO International, Inc.*		1,590,241
				10,510,951
		Information Technology—4.3%
	18,378	CSG Systems International, Inc.*		300,297
	33,794	EarthLink, Inc.		273,731
	12,231	Fair Isaac Corp.		248,656
	19,297	i2 Technologies, Inc.*		303,735
	14,552	JDA Software Group, Inc.*		288,712
	6,784	MAXIMUS, Inc.		313,828
	40,286	ModusLink Global Solutions, Inc.*		331,151
	16,280	NETGEAR, Inc.*		296,784
	9,924	ScanSource, Inc.*		251,970
	9,401	SYNNEX Corp.*		241,888
				2,850,752
		Materials—8.2%
	18,133	Bway Holding Co.*		322,223
	6,158	Clearwater Paper Corp.*		278,773
	28,046	Glatfelter		296,446
	127,903	Graphic Packaging Holding Co.*		292,898

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	14,184	H.B. Fuller Co.	$	271,056
	10,334	Koppers Holdings, Inc.		269,924
	18,018	LSB Industries, Inc.*		223,423
	59,181	Sensient Technologies Corp.		1,496,688
	89,866	W.R. Grace & Co.*		1,967,167
				5,418,598
		Telecommunication Services—3.3%
	6,102	Atlantic Tele-Network, Inc.		279,716
	30,343	Premiere Global Services, Inc.*		226,662
	85,370	Syniverse Holdings, Inc.*		1,462,388
	21,874	USA Mobility, Inc.*		238,427
				2,207,193
		Utilities—4.7%
	76,122	Ferrellgas Partners LP		1,513,306
	62,667	Southwest Gas Corp.		1,566,048
				3,079,354
		Total Common Stocks and Other Equity Interests (Cost $62,833,963)		65,951,060
		Money Market Fund—0.0%
	41,046	Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $41,046)		41,046
		Total Investments (Cost $62,875,009)—99.8%		65,992,106
		Other assets less liabilities—0.2%		114,245
		Net Assets—100.0%	$	66,106,351

*  Non-income producing security.

See Notes to Financial Statements.

25

Portfolio Composition

PowerShares FTSE NASDAQ Small Cap Portfolio

Sector Breakdown (% of the Fund's Net Assets) as of October 31, 2009

Information Technology	27.7
Health Care	20.7
Industrials	14.1
Financials	13.8
Consumer Discretionary	11.6
Energy	3.9
Consumer Staples	3.1
Materials	2.3
Telecommunication Services	2.0
Utilities	0.4
Money Market Fund	0.1
Other	0.3

Schedule of Investments

PowerShares FTSE NASDAQ Small Cap Portfolio

October 31, 2009 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—99.6%
		Consumer Discretionary—11.6%
	221	1-800-FLOWERS.COM, Inc., Class A*	$	849
	160	AFC Enterprises, Inc.*		1,285
	145	Airmedia Group, Inc. ADR (China)*		1,199
	150	Ambassadors Group, Inc.		1,907
	99	America's Car-Mart, Inc.*		2,052
	112	Ascent Media Corp., Class A*		2,597
	160	Audiovox Corp., Class A*		1,034
	680	Ballard Power Systems, Inc. (Canada)*		1,482
	91	Bidz.Com, Inc.*		264
	223	BJ's Restaurants, Inc.*		3,559
	90	Blue Nile, Inc.*		5,404
	112	Buffalo Wild Wings, Inc.*		4,593
	202	California Pizza Kitchen, Inc.*		2,624
	54	Cavco Industries, Inc.*		1,642
	950	Charming Shoppes, Inc.*		4,303
	73	Cherokee, Inc.		1,382
	44	China Auto Logistics, Inc.*		181
	92	Citi Trends, Inc.*		2,422
	562	Coldwater Creek, Inc.*		3,231
	140	Conn's, Inc.*		883
	63	Core-Mark Holding Co., Inc.*		1,724
	207	CROCS, Inc.*		1,259
	100	Crown Media Holdings, Inc., Class A*		154
	70	Deer Consumer Products, Inc.*		857
	770	Denny's Corp.*		1,694
	615	drugstore.com, Inc.*		1,704
	621	Exide Technologies*		3,801
	249	Federal Mogul Corp.*		2,776
	140	FGX International Holdings Ltd.*		1,847

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	424	Finish Line, Inc. (The), Class A	$	4,299
	50	Fisher Communications, Inc.*		974
	330	Fred's, Inc., Class A		3,907
	109	Fuel Systems Solutions, Inc.*		3,569
	171	Fuqi International, Inc.*		3,504
	109	Gaiam, Inc., Class A*		712
	100	G-III Apparel Group Ltd.*		1,601
	146	Global Sources Ltd. (Bermuda)*		904
	100	Global Traffic Network, Inc.*		434
	180	Helen of Troy Ltd.*		4,111
	230	Hibbett Sports, Inc.*		4,310
	195	Home Inns & Hotels Management, Inc. ADR (China)*		5,183
	364	Hot Topic, Inc.*		2,803
	460	HSN, Inc.*		6,872
	504	Imax Corp. (Canada)*		5,191
	460	Interval Leisure Group, Inc.*		5,134
	43	iRobot Corp.*		575
	128	Isle of Capri Casinos, Inc.*		992
	150	Jos. A. Bank Clothiers, Inc.*		6,147
	297	Knology, Inc.*		2,985
	224	K-Swiss, Inc., Class A		1,828
	160	Lakes Entertainment, Inc.*		394
	93	Learning Tree International, Inc.*		1,012
	160	Lincoln Educational Services Corp.*		3,171
	334	Mediacom Communications Corp., Class A*		1,597
	1,090	Melco Crown Entertainment Ltd. ADR (Macau)*		5,406
	102	Monarch Casino & Resort, Inc.*		708
	160	Monro Muffler Brake, Inc.		4,958

See Notes to Financial Statements.

26

Schedule of Investments (Continued)

PowerShares FTSE NASDAQ Small Cap Portfolio

October 31, 2009 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	240	Morgans Hotel Group Co.*	$	797
	340	National CineMedia, Inc.		5,440
	430	NET Servicos de Comunicacao SA ADR (Brazil)*		5,285
	106	Outdoor Channel Holdings, Inc.*		734
	142	Overstock.com, Inc.*		1,988
	548	Pacific Sunwear of California, Inc.*		3,310
	180	Palm Harbor Homes, Inc.*		398
	108	Peet's Coffee & Tea, Inc.*		3,672
	138	PetMed Express, Inc.*		2,165
	200	Princeton Review, Inc.*		916
	169	RC2 Corp.*		2,207
	298	RCN Corp.*		2,485
	98	Red Robin Gourmet Burgers, Inc.*		1,638
	45	RRsat Global Communications Network Ltd. (Israel)		484
	83	Shoe Carnival, Inc.*		1,246
	444	Shuffle Master, Inc.*		3,468
	105	Shutterfly, Inc.*		1,481
	480	Smith & Wesson Holding Corp.*		2,050
	274	Spartan Motors, Inc.		1,367
	100	Stamps.com, Inc.*		1,004
	121	Steiner Leisure Ltd.*		4,472
	149	Steven Madden Ltd.*		6,035
	720	Stewart Enterprises, Inc., Class A		3,298
	50	Syms Corp.*		351
	400	Texas Roadhouse, Inc.*		3,788
	471	Ticketmaster Entertainment, Inc.*		4,545
	157	True Religion Apparel, Inc.*		4,046
	110	Universal Electronics, Inc.*		2,266
	190	VisionChina Media, Inc. ADR (China)*		1,588
	152	Volcom, Inc.*		2,525
	29	Wacoal Holdings Corp. ADR (Japan)		1,752
	133	West Marine, Inc.*		1,013
	267	Westport Innovations, Inc. (Canada)*		2,611
	793	Wet Seal, Inc. (The), Class A*		2,530
	95	Weyco Group, Inc.		2,118
	160	Wonder Auto Technology, Inc.*		2,070
	185	Zumiez, Inc.*		2,492
				231,625
		Consumer Staples—3.1%
	45	Alico, Inc.		1,308
	151	Andersons, Inc. (The)		4,685
	20	Arden Group, Inc., Class A		2,255
	120	Calavo Growers, Inc.		2,142
	133	Cal-Maine Foods, Inc.		3,611
	167	Central Garden & Pet Co.*		1,657
	399	Central Garden & Pet Co., Class A*		3,774
	45	Coca-Cola Bottling Co. Consolidated		2,021
	380	Cresud S.A.C.I.F.yA. ADR (Argentina)		4,682

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	135	Diamond Foods, Inc.	$	4,070
	60	Farmer Bros. Co.		1,134
	160	Female Health Co. (The)*		741
	17	Griffin Land & Nurseries, Inc.		505
	100	Imperial Sugar Co.		1,249
	100	Inter Parfums, Inc.		1,228
	111	J & J Snack Foods Corp.		4,348
	42	Lifeway Foods, Inc.*		506
	106	Nash Finch Co.		3,072
	110	National Beverage Corp.*		1,204
	240	PriceSmart, Inc.		4,632
	500	Smart Balance, Inc.*		2,640
	185	Spartan Stores, Inc.		2,620
	600	Star Scientific, Inc.*		504
	533	SunOpta, Inc. (Canada)*		1,967
	74	Susser Holdings Corp.*		880
	44	Village Super Market, Inc., Class A		1,320
	200	Zhongpin, Inc.*		2,662
				61,417
		Energy—3.9%
	280	Acergy SA ADR (Luxembourg)		3,466
	130	Approach Resources, Inc.*		1,009
	308	ATP Oil & Gas Corp.*		5,331
	652	Brigham Exploration Co.*		6,194
	111	Bronco Drilling Co., Inc.*		702
	120	China Integrated Energy, Inc.*		690
	51	Clayton Williams Energy, Inc.*		1,336
	248	Clean Energy Fuels Corp.*		2,877
	288	Crosstex Energy, Inc.		1,619
	65	Dawson Geophysical Co.*		1,570
	348	Fx Energy, Inc.*		926
	102	Georesources, Inc.*		1,131
	700	Global Industries Ltd.*		5,103
	200	GMX Resources, Inc.*		2,546
	118	Gulf Island Fabrication, Inc.		2,256
	268	Gulfport Energy Corp.*		2,045
	1,715	Ivanhoe Energy, Inc. (Canada)*		3,927
	220	James River Coal Co.*		4,178
	142	Knightsbridge Tankers Ltd. (Bermuda)		1,795
	219	Matrix Service Co.*		1,943
	30	OYO Geospace Corp.*		787
	342	Parallel Petroleum Corp.*		1,081
	158	Petroleum Development Corp.*		2,639
	104	PHI, Inc.*		1,787
	314	Ram Energy Resources, Inc.*		446
	14	Recon Technology Ltd. (Cayman Islands)*		82
	230	Rex Energy Corp.*		1,861
	432	Rosetta Resources, Inc.*		5,845
	136	StealthGas, Inc. (Greece)		873
	148	Superior Well Services, Inc.*		1,570

See Notes to Financial Statements.

27

Schedule of Investments (Continued)

PowerShares FTSE NASDAQ Small Cap Portfolio

October 31, 2009 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	105	T-3 Energy Services, Inc.*	$	2,102
	300	Tesco Corp. (Canada)*		2,604
	127	Toreador Resources Corp.*		1,083
	60	Torm A/S ADR (Denmark)		636
	539	Transglobe Energy Corp. (Canada)*		2,048
	96	Union Drilling, Inc.*		733
	470	Warren Resources, Inc.*		1,015
				77,836
		Financials—13.8%
	151	1st Source Corp.		2,238
	181	Abington Bancorp, Inc.		1,242
	30	Advanta Corp., Class A		11
	200	Advanta Corp., Class B		65
	155	American Capital Agency Corp. REIT		4,030
	90	American Physicians Capital, Inc.		2,545
	59	American Physicians Service Group, Inc.		1,420
	118	Ameris Bancorp		695
	156	AMERISAFE, Inc.*		2,892
	89	Arrow Financial Corp.		2,263
	120	Asset Acceptance Capital Corp.*		872
	70	Avatar Holdings, Inc.*		1,141
	70	Baldwin & Lyons, Inc., Class B		1,597
	38	Bancorp Rhode Island, Inc.		970
	140	BancTrust Financial Group, Inc.		449
	105	Bank of The Ozarks, Inc.		2,389
	180	BankFinancial Corp.		1,699
	130	Banner Corp.		399
	112	Berkshire Hills Bancorp, Inc.		2,302
	308	BGC Partners, Inc., Class A		1,488
	560	Boston Private Financial Holdings, Inc.		3,332
	108	Capital City Bank Group, Inc.		1,268
	20	Capital Southwest Corp.		1,485
	238	Cardinal Financial Corp.		1,940
	200	Cascade Bancorp		204
	100	Center Financial Corp.		421
	3,220	Citizens Republic Bancorp, Inc.*		1,938
	100	City Bank		232
	113	Clifton Savings Bancorp, Inc.		1,042
	110	CNinsure, Inc. ADR (Cayman Islands)		2,230
	280	CoBiz Financial, Inc.		1,336
	227	Columbia Banking System, Inc.		3,337
	126	Community Trust Bancorp, Inc.		3,102
	201	CompuCredit Holdings Corp.*		659
	76	Credit Acceptance Corp.*		2,612
	139	Danvers Bancorp, Inc.		1,908
	20	Diamond Hill Investment Group, Inc.*		1,049
	284	Dime Community Bancshares		3,121
	190	Dollar Financial Corp.*		3,566
	124	Donegal Group, Inc., Class A		1,810
	64	eHealth, Inc.*		911

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	106	Elbit Imaging Ltd. (Israel)*	$	2,719
	24	EMC Insurance Group, Inc.		494
	193	Encore Capital Group, Inc.*		2,889
	107	Enterprise Financial Services Corp.		913
	89	Epoch Holding Corp.		827
	377	EZCORP, Inc., Class A*		4,890
	256	FBR Capital Markets Corp.*		1,562
	139	First Bancorp		1,885
	441	First Busey Corp.		1,707
	244	First Cash Financial Services, Inc.*		4,192
	142	First Community Bancshares, Inc.		1,653
	314	First Financial Bancorp		3,982
	82	First Financial Corp.		2,274
	120	First Financial Holdings, Inc.		1,619
	174	First Financial Northwest, Inc.		1,030
	175	First Merchants Corp.		1,071
	86	First South Bancorp, Inc.		911
	230	Firstservice Corp. (Canada)*		4,087
	247	Flushing Financial Corp.		2,774
	60	Fox Chase Bancorp, Inc.*		595
	57	FPIC Insurance Group, Inc.*		1,928
	300	Frontier Financial Corp.*		127
	83	Great Southern Bancorp, Inc.		1,902
	100	Greene Bankshares, Inc.		414
	240	Greenlight Capital Re Ltd., Class A (Cayman Islands)*		4,478
	400	Guaranty Bancorp*		524
	175	Hallmark Financial Services, Inc.*		1,342
	277	Hanmi Financial Corp.*		424
	356	Harleysville National Corp.		2,051
	240	Harris & Harris Group, Inc.*		1,030
	136	Heartland Financial USA, Inc.		1,746
	100	Heritage Commerce Corp.		264
	75	Home Bancorp, Inc.*		901
	150	Home BancShares, Inc.		3,244
	70	Home Federal Bancorp, Inc.		808
	170	IBERIABANK Corp.		7,363
	172	Independent Bank Corp.		3,658
	140	International Assets Holding Corp.*		2,519
	29	Kansas City Life Insurance Co.		778
	49	K-Fed Bancorp		438
	196	Lakeland Bancorp, Inc.		1,192
	102	Lakeland Financial Corp.		2,098
	74	Legacy Bancorp, Inc.		707
	62	Life Partners Holdings, Inc.		1,053
	580	Maiden Holdings Ltd. (Bermuda)		4,019
	168	MainSource Financial Group, Inc.		979
	259	MarketAxess Holdings, Inc.		3,077
	140	Medallion Financial Corp.		1,099
	91	Meridian Interstate Bancorp, Inc.*		783
	170	Mission West Properties, Inc. REIT		1,130

See Notes to Financial Statements.

28

Schedule of Investments (Continued)

PowerShares FTSE NASDAQ Small Cap Portfolio

October 31, 2009 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	219	Nara Bancorp, Inc.	$	1,612
	26	NASB Financial, Inc.		640
	50	National Interstate Corp.		905
	390	NewStar Financial, Inc.*		979
	360	Northfield Bancorp, Inc.		4,475
	81	OceanFirst Financial Corp.		770
	116	Old Second Bancorp, Inc.		621
	135	Oritani Financial Corp.		1,729
	145	Pacific Continental Corp.		1,581
	157	Penson Worldwide, Inc.*		1,531
	87	Peoples Bancorp, Inc.		934
	140	Pico Holdings, Inc.*		4,752
	270	Pinnacle Financial Partners, Inc.*		3,429
	200	PMA Capital Corp., Class A*		956
	200	Premierwest Bancorp		382
	185	Presidential Life Corp.		1,726
	396	Prospect Capital Corp.		3,932
	326	Provident New York Bancorp		2,781
	174	Renasant Corp.		2,547
	153	Republic Bancorp, Inc., Class A		2,814
	85	Rockville Financial, Inc.		880
	259	Roma Financial Corp.		3,209
	112	S.Y. Bancorp, Inc.		2,503
	176	Sanders Morris Harris Group, Inc.		1,023
	137	Sandy Spring Bancorp, Inc.		1,584
	105	SCBT Financial Corp.		2,716
	400	Seacoast Banking Corp. of Florida		596
	70	Shore Bancshares, Inc.		1,142
	60	Sierra Bancorp		524
	110	Simmons First National Corp., Class A		3,219
	1,400	South Financial Group, Inc. (The)		1,120
	123	Southside Bancshares, Inc.		2,557
	122	Southwest Bancorp, Inc.		1,200
	188	StellarOne Corp.		1,995
	400	Sterling Financial Corp.*		320
	66	Stratus Properties, Inc.*		627
	79	Suffolk Bancorp		2,209
	148	Sun Bancorp, Inc.*		601
	47	Taylor Capital Group, Inc.*		268
	101	Territorial Bancorp, Inc.*		1,665
	290	Texas Capital Bancshares, Inc.*		4,225
	200	Thomas Weisel Partners Group, Inc.*		906
	330	Tower Group, Inc.		8,111
	206	Townebank		2,377
	170	TradeStation Group, Inc.*		1,312
	131	TriCo Bancshares		1,915
	145	Union Bankshares Corp.		1,786
	290	United America Indemnity Ltd., Class A*		2,033
	130	United Financial Bancorp, Inc.		1,670
	78	United Security Bancshares*		195
	133	Univest Corp. of Pennsylvania		2,558

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	104	ViewPoint Financial Group	$	1,394
	219	Virginia Commerce Bancorp*		880
	133	Washington Trust Bancorp, Inc.		1,998
	110	Waterstone Financial, Inc.*		375
	222	WesBanco, Inc.		3,141
	250	Westfield Financial, Inc.		2,013
	184	Wilshire Bancorp, Inc.		1,295
	135	World Acceptance Corp.*		3,387
	52	WSFS Financial Corp.		1,435
				274,420
		Health Care—20.7%
	133	3SBio, Inc. ADR (Cayman Islands)*		1,374
	181	Abaxis, Inc.*		4,130
	306	Abiomed, Inc.*		2,769
	210	Accelrys, Inc.*		1,140
	453	Accuray, Inc.*		2,614
	310	Acorda Therapeutics, Inc.*		6,736
	300	Adolor Corp.*		435
	150	Affymax, Inc.*		3,021
	578	Affymetrix, Inc.*		3,023
	102	Air Methods Corp.*		3,115
	500	Akorn, Inc.*		725
	200	Albany Molecular Research, Inc.*		1,628
	610	Allos Therapeutics, Inc.*		3,447
	67	Almost Family, Inc.*		2,033
	322	Alphatec Holdings, Inc.*		1,539
	140	AMAG Pharmaceuticals, Inc.*		5,289
	125	American Dental Partners, Inc.*		1,486
	143	Amicus Therapeutics, Inc.*		549
	200	Angiodynamics, Inc.*		3,020
	764	Arena Pharmaceuticals, Inc.*		2,697
	890	Ariad Pharmaceuticals, Inc.*		1,602
	379	Arqule, Inc.*		1,270
	300	Array Biopharma, Inc.*		537
	203	Aspenbio Pharma, Inc.*		343
	16	Atrion Corp.		1,895
	400	ATS Medical, Inc.*		1,076
	122	BioMimetic Therapeutics, Inc.*		1,424
	110	Bio-Reference Labs, Inc.*		3,556
	38	Biospecifics Technologies Corp.*		1,159
	258	BMP Sunstone Corp. (China)*		939
	308	Cadence Pharmaceuticals, Inc.*		2,781
	191	Cardiac Science Corp.*		669
	500	Cardiome Pharma Corp. (Canada)*		1,955
	196	CardioNet, Inc.*		1,158
	260	Celldex Therapeutics, Inc.*		1,134
	207	China Medical Technologies, Inc. ADR (Cayman Islands)		3,250
	191	Clinical Data, Inc.*		3,014
	400	Columbia Laboratories, Inc.*		372

See Notes to Financial Statements.

29

Schedule of Investments (Continued)

PowerShares FTSE NASDAQ Small Cap Portfolio

October 31, 2009 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	45	Computer Programs & Systems, Inc.	$	1,901
	252	Conceptus, Inc.*		4,420
	79	Corvel Corp.*		2,252
	256	Cross Country Healthcare, Inc.*		2,115
	105	Crucell NV ADR (Netherlands)*		2,074
	56	Cutera, Inc.*		505
	171	Cyberonics, Inc.*		2,473
	85	Cynosure, Inc., Class A*		852
	317	Cypress Bioscience, Inc.*		1,946
	500	Cytokinetics, Inc.*		1,595
	945	Dendreon Corp.*		23,880
	983	Discovery Laboratories, Inc.*		914
	640	Durect Corp.*		1,350
	600	Dyax Corp.*		1,884
	68	Ensign Group, Inc. (The)		1,005
	373	Enzon Pharmaceuticals, Inc.*		3,129
	400	eResearchTechnology, Inc.*		2,960
	76	Eurand NV (Netherlands)*		1,005
	79	Exactech, Inc.*		1,185
	887	Exelixis, Inc.*		5,393
	198	Flamel Technologies SA ADR (France)*		1,782
	176	Genomic Health, Inc.*		3,268
	140	Genoptix, Inc.*		4,871
	237	Gentiva Health Services, Inc.*		5,688
	748	Geron Corp.*		4,570
	120	Given Imaging Ltd. (Israel)		1,709
	120	Gtx, Inc.*		1,078
	738	Halozyme Therapeutics, Inc.*		4,472
	300	Hansen Medical, Inc.*		768
	270	Healthways, Inc.*		4,342
	50	Home Diagnostics, Inc.*		313
	1,330	Human Genome Sciences, Inc.*		24,858
	89	ICU Medical, Inc.*		3,115
	200	Idenix Pharmaceuticals, Inc.*		444
	192	Idera Pharmaceuticals, Inc.*		1,025
	203	I-Flow Corp.*		2,562
	460	Immunogen, Inc.*		3,077
	600	Immunomedics, Inc.*		2,136
	948	Incyte Corp.*		5,584
	649	Inspire Pharmaceuticals, Inc.*		2,901
	250	Insulet Corp.*		2,775
	378	InterMune, Inc.*		4,566
	276	inVentiv Health, Inc.*		4,686
	130	IPC The Hospitalist Co., Inc.*		3,939
	140	IRIS International, Inc.*		1,420
	123	Kendle International, Inc.*		2,076
	93	Kensey Nash Corp.*		2,224
	1,000	Lexicon Pharmaceuticals, Inc.*		1,310
	110	LHC Group, Inc.*		3,070
	900	Ligand Pharmaceuticals, Inc., Class B*		1,530
	459	Mannkind Corp.*		2,396

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	83	MAP Pharmaceuticals, Inc.*	$	682
	62	Matrixx Initiatives, Inc.*		279
	234	Maxygen, Inc.*		1,306
	122	MedCath Corp.*		1,002
	135	Medical Action Industries, Inc.*		1,477
	50	Medidata Solutions, Inc.*		790
	207	Medivation, Inc.*		5,283
	220	Merit Medical Systems, Inc.*		3,736
	98	Metabolix, Inc.*		994
	132	Micrus Endovascular Corp.*		1,560
	265	Momenta Pharmaceuticals, Inc.*		2,417
	100	MWI Veterinary Supply, Inc.*		3,540
	416	Nabi Biopharmaceuticals*		1,352
	75	Nanosphere, Inc.*		501
	232	Natus Medical, Inc.*		3,222
	121	Neogen Corp.*		3,836
	300	Neurocrine Biosciences, Inc.*		666
	130	NovaMed, Inc.*		524
	748	Novavax, Inc.*		2,872
	394	NPS Pharmaceuticals, Inc.*		1,249
	280	Nxstage Medical, Inc.*		1,562
	76	Obagi Medical Products, Inc.*		777
	206	Odyssey HealthCare, Inc.*		2,872
	259	Omnicell, Inc.*		2,549
	269	Optimer Pharmaceuticals, Inc.*		3,110
	386	Orasure Technologies, Inc.*		1,258
	283	Orexigen Therapeutics, Inc.*		1,828
	141	Orthofix International NV (Netherlands)*		4,512
	623	Orthovita, Inc.*		2,180
	53	Osiris Therapeutics, Inc.*		337
	351	Pain Therapeutics, Inc.*		1,780
	114	Palomar Medical Technologies, Inc.*		1,158
	230	Pharmasset, Inc.*		4,319
	218	Poniard Pharmaceuticals, Inc.*		1,428
	240	Pozen, Inc.*		1,363
	254	Progenics Pharmaceuticals, Inc.*		1,064
	451	QLT, Inc. (Canada)*		1,574
	530	Questcor Pharmaceuticals, Inc.*		2,406
	251	Quidel Corp.*		3,589
	300	Radnet, Inc.*		729
	240	Repligen Corp.*		1,171
	90	Repros Therapeutics, Inc.*		84
	183	Res-Care, Inc.*		2,201
	405	Rigel Pharmaceuticals, Inc.*		2,596
	99	Rochester Medical Corp.*		1,001
	451	RTI Biologics, Inc.*		1,768
	93	Rxi Pharmaceuticals Corp.*		194
	403	Salix Pharmaceuticals Ltd.*		7,411
	340	Sangamo Biosciences, Inc.*		1,809
	481	Santarus, Inc.*		1,486
	500	Savient Pharmaceuticals, Inc.*		6,300

See Notes to Financial Statements.

30

Schedule of Investments (Continued)

PowerShares FTSE NASDAQ Small Cap Portfolio

October 31, 2009 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	810	Seattle Genetics, Inc.*	$	7,355
	29	Skystar Bio-Pharmaceutical Co. Ltd.*		484
	102	Somanetics Corp.*		1,525
	142	SonoSite, Inc.*		3,520
	260	Spectranetics Corp.*		1,482
	264	Stereotaxis, Inc.*		953
	362	Sun Healthcare Group, Inc.*		3,287
	440	SuperGen, Inc.*		1,030
	240	SXC Health Solutions Corp. (Canada)*		10,963
	230	Syneron Medical Ltd. (Israel)*		2,530
	99	Synovis Life Technologies, Inc.*		1,194
	200	Synta Pharmaceuticals Corp.*		550
	330	Theravance, Inc.*		4,610
	432	TomoTherapy, Inc.*		1,434
	100	TranS1, Inc.*		397
	96	US Physical Therapy, Inc.*		1,348
	132	Vascular Solutions, Inc.*		1,019
	57	Virtual Radiologic Corp.*		732
	120	Vital Images, Inc.*		1,369
	650	Vivus, Inc.*		5,135
	1,300	Xoma Ltd.*		884
	49	Young Innovations, Inc.		1,159
	170	Zoll Medical Corp.*		3,301
	287	Zymogenetics, Inc.*		1,335
				411,597
		Industrials—14.1%
	188	3d Systems Corp.*		1,658
	108	AAON, Inc.		1,945
	250	Acacia Research—Acacia Technologies*		1,900
	511	Advanced Battery Technologies, Inc.*		1,717
	131	Aerovironment, Inc.*		3,492
	223	Altra Holdings, Inc.*		1,956
	27	American Commercial Lines, Inc.*		579
	115	American Ecology Corp.		1,911
	80	American Railcar Industries, Inc.		800
	73	American Science & Engineering, Inc.		4,827
	363	American Superconductor Corp.*		12,168
	88	American Woodmark Corp.		1,731
	226	Apogee Enterprises, Inc.		2,992
	120	A-Power Energy Generation Systems Ltd.*		1,296
	107	Applied Signal Technology, Inc.		2,192
	134	Argon ST, Inc.*		2,492
	180	Astec Industries, Inc.*		4,140
	164	ATC Technology Corp.*		3,428
	170	Atlas Air Worldwide Holdings, Inc.*		4,469
	68	Barrett Business Services, Inc.		789
	370	Beacon Roofing Supply, Inc.*		5,313
	250	Canadian Solar, Inc. (China)*		3,645
	1,500	Capstone Turbine Corp.*		1,755
	120	Casella Waste Systems, Inc., Class A*		335

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	180	Celadon Group, Inc.*	$	1,757
	230	Chart Industries, Inc.*		4,547
	174	China Architectural Engineering, Inc.*		233
	340	China BAK Battery, Inc.*		1,119
	69	China Fire & Security Group, Inc.*		981
	119	China Ritar Power Corp.*		577
	239	China Sunergy Co. Ltd. ADR (China)*		884
	110	Coleman Cable, Inc.*		382
	158	Columbus McKinnon Corp.*		2,615
	101	Courier Corp.		1,498
	92	CRA International, Inc.*		2,277
	225	Diamond Management & Technology Consultants, Inc.		1,332
	2,110	DryShips, Inc. (Greece)*		12,744
	81	DXP Enterprises, Inc.*		930
	83	Dynamex, Inc.*		1,538
	105	Dynamic Materials Corp.		2,024
	515	Eagle Bulk Shipping, Inc.		2,441
	190	Encore Wire Corp.		3,943
	388	Ener1, Inc.*		1,936
	417	Energy Recovery, Inc.*		2,327
	140	EnerNOC, Inc.*		4,022
	191	Euroseas Ltd.		749
	1,700	Evergreen Solar, Inc.*		2,465
	114	Exponent, Inc.*		2,965
	74	First Advantage Corp., Class A*		1,302
	156	Flanders Corp.*		786
	576	Force Protection, Inc.*		2,534
	99	FreightCar America, Inc.		2,334
	111	Frozen Food Express Industries		322
	151	Fuel Tech, Inc.*		1,747
	576	FuelCell Energy, Inc.*		1,918
	170	Fushi Copperweld, Inc.*		1,175
	153	GeoEye, Inc.*		3,882
	187	Gibraltar Industries, Inc.		2,023
	485	Great Lakes Dredge & Dock Corp.		2,973
	116	H&E Equipment Services, Inc.*		1,230
	90	Harbin Electric, Inc.*		1,434
	420	Hawaiian Holdings, Inc.*		2,978
	358	Healthcare Services Group, Inc.		7,071
	137	Heidrick & Struggles International, Inc.		3,748
	67	Heritage-Crystal Clean, Inc.*		838
	114	Herley Industries, Inc.*		1,289
	150	Houston Wire & Cable Co.		1,813
	55	Hurco Cos., Inc.*		874
	50	ICF International, Inc.*		1,433
	284	Innerworkings, Inc.*		1,463
	320	Insituform Technologies, Inc., Class A*		6,784
	147	Insteel Industries, Inc.		1,635
	125	Integrated Electrical Services, Inc.*		822
	468	Interface, Inc., Class A		3,632

See Notes to Financial Statements.

31

Schedule of Investments (Continued)

PowerShares FTSE NASDAQ Small Cap Portfolio

October 31, 2009 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	50	Jinpan International Ltd. (China)	$	1,518
	213	Kaman Corp.		4,401
	262	Kelly Services, Inc., Class A		2,903
	46	Key Technology, Inc.*		499
	315	Kforce, Inc.*		3,695
	222	Kimball International, Inc., Class B		1,665
	23	K-Tron International, Inc.*		2,186
	131	Ladish Co., Inc.*		1,698
	50	Lawson Products, Inc.		777
	85	LB Foster Co., Class A*		2,387
	226	LECG Corp.*		780
	75	LMI Aerospace, Inc.*		808
	200	LSI Industries, Inc.		1,398
	136	Marten Transport Ltd.*		2,385
	7	Mitsui & Co. Ltd. ADR (Japan)*		1,829
	104	Multi-Color Corp.		1,380
	76	Northwest Pipe Co.*		2,288
	430	Odyssey Marine Exploration, Inc.*		645
	27	Omega Flex, Inc.		420
	298	On Assignment, Inc.*		1,800
	178	Orion Energy Systems, Inc.*		678
	219	Pacer International, Inc.		626
	259	Paragon Shipping, Inc., Class A		1,057
	13	Patriot Transportation Holding, Inc.*		1,144
	799	Plug Power, Inc.*		687
	110	PMFG, Inc.*		1,592
	71	Powell Industries, Inc.*		2,611
	700	Power-One, Inc.*		1,925
	23	Preformed Line Products Co.		885
	193	Prg-Schultz International, Inc.*		1,000
	60	Protection One, Inc.*		323
	150	Raven Industries, Inc.		3,705
	180	RBC Bearings, Inc.*		3,872
	215	Republic Airways Holdings, Inc.*		1,722
	105	RINO International Corp.*		2,050
	160	Rush Enterprises, Inc., Class A*		1,747
	60	Rush Enterprises, Inc., Class B*		549
	110	Saia, Inc.*		1,613
	150	School Specialty, Inc.*		3,337
	200	SmartHeat, Inc.*		1,788
	300	Solarfun Power Holdings Co. Ltd. ADR (China)*		1,425
	62	Standard Parking Corp.*		1,091
	372	Star Bulk Carriers Corp.		1,135
	109	Sterling Construction Co., Inc.*		1,758
	104	Sun Hydraulics Corp.		1,982
	500	Taser International, Inc.*		2,045
	157	Team, Inc.*		2,548
	100	Tecumseh Products Co., Class A*		1,045
	33	Tecumseh Products Co., Class B*		342
	113	Thermadyne Holdings Corp.*		683

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	111	Titan Machinery, Inc.*	$	1,191
	120	Ultralife Corp.*		439
	180	Ultrapetrol Bahamas Ltd.*		882
	116	Universal Forest Products, Inc.		4,139
	134	Universal Truckload Services, Inc.		2,203
	68	USA Truck, Inc.*		764
	700	Valence Technology, Inc.*		903
	180	Vicor Corp.*		1,228
	110	Vitran Corp., Inc. (Canada)*		942
	30	VSE Corp.		1,314
	270	Waste Services, Inc.*		1,771
	497	YRC Worldwide, Inc.*		1,814
				281,873
		Information Technology—27.7%
	243	Acme Packet, Inc.*		2,379
	216	Actel Corp.*		2,575
	378	Actuate Corp.*		1,894
	999	Adaptec, Inc.*		3,187
	360	Advanced Analogic Technologies, Inc.*		1,134
	261	Advanced Energy Industries, Inc.*		3,187
	200	Airvana, Inc.*		1,222
	478	Alvarion Ltd. (Israel)*		1,879
	189	American Software, Inc., Class A		1,228
	1,125	Amkor Technology, Inc.*		6,199
	521	Anadigics, Inc.*		1,672
	122	Anaren, Inc.*		1,784
	544	Applied Micro Circuits Corp.*		4,254
	270	ArcSight, Inc.*		6,674
	614	ARM Holdings PLC ADR (United Kingdom)		4,464
	1,100	Art Technology Group, Inc.*		4,532
	535	Aruba Networks, Inc.*		4,184
	370	AsiaInfo Holdings, Inc.*		8,162
	70	ASM International NV (Netherlands)*		1,395
	259	ATMI, Inc.*		3,924
	18	BEL Fuse, Inc., Class A		320
	79	BEL Fuse, Inc., Class B		1,430
	413	BigBand Networks, Inc.*		1,528
	320	Blue Coat Systems, Inc.*		7,130
	156	Bottomline Technologies, Inc.*		2,290
	508	Brightpoint, Inc.*		3,744
	531	Brooks Automation, Inc.*		3,653
	58	Cass Information Systems, Inc.		1,724
	620	CDC Corp., Class A (Hong Kong)*		1,445
	294	Ceragon Networks Ltd. (Israel)*		2,622
	164	CEVA, Inc.*		1,661
	135	China Finance Online Co. Ltd. ADR (China)*		1,083
	305	China Information Security Technology, Inc.*		1,952
	535	Cirrus Logic, Inc.*		2,589
	222	Cogo Group, Inc.*		1,245
	195	Cohu, Inc.		2,219

See Notes to Financial Statements.

32

Schedule of Investments (Continued)

PowerShares FTSE NASDAQ Small Cap Portfolio

October 31, 2009 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	183	comScore, Inc.*	$	2,805
	184	Comverge, Inc.*		2,099
	176	Constant Contact, Inc.*		2,916
	72	CPI International, Inc.*		713
	560	Cybersource Corp.*		9,173
	338	Daktronics, Inc.		2,542
	158	Deltek, Inc.*		1,130
	164	Demandtec, Inc.*		1,442
	190	DG Fastchannel, Inc.*		3,984
	200	Digi International, Inc.*		1,590
	260	Diodes, Inc.*		4,259
	81	DivX, Inc.*		390
	184	Double-Take Software, Inc.*		1,706
	191	DSP Group, Inc.*		1,104
	140	DTS, Inc.*		3,955
	63	Ebix, Inc.*		3,881
	250	Echelon Corp.*		3,412
	149	Electro Rent Corp.		1,596
	210	Electro Scientific Industries, Inc.*		2,297
	600	EMCORE Corp.*		612
	128	EMS Technologies, Inc*		2,231
	1,065	Entegris, Inc.*		4,004
	502	Epicor Software Corp.*		3,875
	295	EPIQ Systems, Inc.*		3,720
	390	Exar Corp.*		2,691
	73	ExlService Holdings, Inc.*		994
	700	Extreme Networks, Inc.*		1,393
	195	EZchip Semiconductor Ltd. (Israel)*		2,334
	270	FalconStor Software, Inc.*		899
	130	FARO Technologies, Inc.*		2,010
	490	Finisar Corp.*		3,650
	140	Forrester Research, Inc.*		3,546
	55	Fundtech Ltd. (Israel)*		714
	310	GigaMedia Ltd. (Taiwan, Republic of China)*		1,271
	300	Gilat Satellite Networks Ltd. (Israel)*		1,347
	175	Globecomm Systems, Inc.*		1,183
	325	GSI Commerce, Inc.*		6,165
	330	Hackett Group, Inc. (The)*		1,030
	781	Harmonic, Inc.*		4,100
	486	Harris Stratex Networks, Inc., Class A*		3,062
	720	Himax Technologies, Inc. ADR (Taiwan, Republic of China)		1,901
	71	Hughes Communications, Inc.*		1,656
	140	i2 Technologies, Inc.*		2,204
	114	ICx Technologies, Inc.*		576
	225	iGate Corp.		1,987
	227	Immersion Corp.*		833
	355	infoGROUP, Inc.*		2,329
	253	Information Services Group, Inc.*		911
	288	InfoSpace, Inc.*		2,468

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	370	Insight Enterprises, Inc.*	$	3,892
	144	Integral Systems, Inc.*		1,210
	105	Interactive Intelligence, Inc.*		1,761
	403	Internap Network Services Corp.*		1,290
	257	Internet Brands, Inc., Class A*		1,912
	304	Internet Capital Group, Inc.*		2,210
	59	Internet Gold-Golden Lines Ltd. (Israel)*		759
	180	Intevac, Inc.*		1,836
	500	iPass, Inc.*		650
	162	Isilon Systems, Inc.*		850
	130	Ituran Location and Control Ltd. (Israel)*		1,607
	200	Ixia*		1,330
	180	IXYS Corp.*		1,206
	260	JDA Software Group, Inc.*		5,158
	189	Kenexa Corp.*		2,381
	122	Keynote Systems, Inc.*		1,247
	282	Knot, Inc. (The)*		3,009
	530	Kopin Corp.*		2,353
	900	Lattice Semiconductor Corp.*		1,719
	277	Limelight Networks, Inc.*		967
	175	Liquidity Services, Inc.*		1,683
	180	Littelfuse, Inc.*		4,961
	73	LogMeIn, Inc.*		1,467
	58	LoopNet, Inc.*		506
	160	Loral Space & Communications, Inc.*		4,227
	140	Manhattan Associates, Inc.*		3,213
	205	Marchex, Inc., Class B		929
	400	Mattson Technology, Inc.*		848
	216	Maxwell Technologies, Inc.*		3,873
	248	Mellanox Technologies Ltd. (Israel)*		4,328
	76	MicroStrategy, Inc., Class A*		6,633
	400	Microtune, Inc.*		684
	377	ModusLink Global Solutions, Inc.*		3,099
	212	Monolithic Power Systems, Inc.*		4,238
	217	Monotype Imaging Holdings, Inc.*		1,632
	1,230	Move, Inc.*		2,521
	81	Multi-Fineline Electronix, Inc.*		2,207
	69	NCI, Inc., Class A*		1,857
	241	Ness Technologies, Inc.*		1,588
	136	Netlogic Microsystems, Inc.*		5,169
	330	Netscout Systems, Inc.*		4,056
	301	Newport Corp.*		2,239
	380	NIC, Inc.		3,329
	75	Novatel Wireless, Inc.*		669
	38	NVE Corp.*		1,421
	310	O2micro International Ltd. ADR (Cayman Islands)*		1,361
	413	OmniVision Technologies, Inc.*		5,063
	242	Online Resources Corp.*		1,270
	886	Opentv Corp., Class A*		1,364
	173	Oplink Communications, Inc.*		2,566

See Notes to Financial Statements.

33

Schedule of Investments (Continued)

PowerShares FTSE NASDAQ Small Cap Portfolio

October 31, 2009 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	120	OPNET Technologies, Inc.	$	1,308
	549	Opnext, Inc.*		1,351
	250	Orbcomm, Inc.*		592
	280	Orbotech Ltd. (Israel)*		2,604
	140	OSI Systems, Inc.*		2,748
	1,360	Palm, Inc.*		15,790
	250	Parkervision, Inc.*		692
	70	PC Connection, Inc.*		412
	152	PC-Tel, Inc.*		891
	120	Pegasystems, Inc.		3,440
	280	Perfect World Co. Ltd. ADR (Cayman Islands)*		12,323
	261	Perficient, Inc.*		2,125
	213	Pericom Semiconductor Corp.*		2,004
	270	Phoenix Technologies Ltd.*		632
	218	Power Integrations, Inc.		6,802
	297	Presstek, Inc.*		505
	100	Qad, Inc.		456
	271	Radiant Systems, Inc.*		2,667
	195	RadiSys Corp.*		1,659
	154	RADvision Ltd. (Israel)*		950
	153	RADWARE Ltd. (Israel)*		1,770
	100	Renaissance Learning, Inc.		908
	2,204	RF Micro Devices, Inc.*		8,772
	100	RightNow Technologies, Inc.*		1,526
	79	Rimage Corp.*		1,454
	120	Rubicon Technology, Inc.*		1,814
	190	Rudolph Technologies, Inc.*		1,205
	434	S1 Corp.*		2,604
	666	Sanmina-SCI Corp.*		4,276
	254	Seachange International, Inc.*		1,720
	203	Semitool, Inc.*		1,433
	145	Shoretel, Inc.*		953
	259	Sierra Wireless, Inc. (Canada)*		2,334
	222	Sigma Designs, Inc.*		2,666
	247	Silicon Graphics International Corp.*		1,472
	600	Silicon Image, Inc.*		1,266
	279	Silicon Motion Technology Corp. ADR (Taiwan, Republic of China)*		971
	740	Silicon Storage Technology, Inc.*		1,502
	263	Smith Micro Software, Inc.*		2,388
	430	SonicWALL, Inc.*		3,414
	161	Sourcefire, Inc.*		3,268
	181	Standard Microsystems Corp.*		3,486
	300	STEC, Inc.*		6,396
	169	Stratasys, Inc.*		2,667
	410	SuccessFactors, Inc.*		6,269
	200	Super Micro Computer, Inc.*		1,612
	108	Supertex, Inc.*		2,619
	360	Support.Com, Inc.*		864
	200	Switch & Data Facilities Co., Inc.*		3,346

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	360	Symmetricom, Inc.*	$	1,724
	280	Symyx Technologies, Inc.*		1,644
	76	Synchronoss Technologies, Inc.*		867
	260	Taleo Corp., Class A*		5,652
	106	Techtarget, Inc.*		668
	54	Techwell, Inc.*		560
	330	TeleCommunication Systems, Inc., Class A*		2,950
	113	Telvent GIT SA (Spain)		3,249
	534	Terremark Worldwide, Inc.*		3,412
	107	The9 Ltd. ADR (China)		802
	200	Thestreet.Com, Inc.		498
	550	THQ, Inc.*		2,876
	860	TiVo, Inc.*		9,357
	55	Travelzoo, Inc.*		760
	491	Trident Microsystems, Inc.*		923
	1,240	TriQuint Semiconductor, Inc.*		6,684
	355	TTM Technologies, Inc.*		3,610
	202	Ultimate Software Group, Inc.*		5,153
	180	Ultratech, Inc.*		2,326
	300	Universal Display Corp.*		3,408
	1,000	Utstarcom, Inc.*		1,810
	232	VASCO Data Security International, Inc.*		1,411
	198	Veeco Instruments, Inc.*		4,821
	147	Virtusa Corp.*		1,320
	118	Vocus, Inc.*		2,136
	200	Volterra Semiconductor Corp.*		2,770
	86	WebMD Health Corp.*		2,929
	110	Yucheng Technologies Ltd. (China)*		792
	500	Zix Corp.*		915
	419	Zoran Corp.*		3,717
	141	Zygo Corp.*		974
				551,246
		Materials—2.3%
	210	A. Schulman, Inc.		3,648
	42	AEP Industries, Inc.*		1,465
	800	Altair Nanotechnologies, Inc.*		816
	151	Balchem Corp.		4,166
	455	Century Aluminum Co.*		3,945
	65	China Natural Resources, Inc. (Hong Kong)*		688
	180	DRDGOLD Ltd. ADR (South Africa)		1,057
	110	Globe Specialty Metals, Inc.*		871
	99	Haynes International, Inc.*		2,804
	355	Horsehead Holding Corp.*		3,383
	230	ICO, Inc.*		883
	133	Innophos Holdings, Inc.		2,574
	197	Innospec, Inc.		2,328
	181	KapStone Paper and Packaging Corp.*		1,256
	200	Landec Corp.*		1,308
	240	Lihir Gold Ltd. ADR (Australia)*		6,542

See Notes to Financial Statements.

34

Schedule of Investments (Continued)

PowerShares FTSE NASDAQ Small Cap Portfolio

October 31, 2009 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	90	Olympic Steel, Inc.	$	2,277
	90	Penford Corp.		531
	201	Senomyx, Inc.*		772
	334	Shengda Tech, Inc.*		2,021
	300	U.S. Concrete, Inc.*		483
	16	U.S. Lime & Minerals, Inc.*		561
	287	Zoltek Cos., Inc.*		2,557
				46,936
		Telecommunication Services—2.0%
	361	Alaska Communications Systems Group, Inc.		2,809
	62	America Movil SAB de CV, Series A ADR (Mexico)		2,722
	90	Atlantic Tele-Network, Inc.		4,126
	280	Cogent Communications Group, Inc.*		2,836
	186	Consolidated Communications Holdings, Inc.		2,570
	114	D&E Communications, Inc.		1,277
	300	General Communication, Inc., Class A*		1,845
	240	Ibasis, Inc.*		540
	1,200	ICO Global Communications Holdings Ltd.*		936
	140	iPCS, Inc.*		3,342
	276	Neutral Tandem, Inc.*		5,821
	898	PAETEC Holding Corp.*		2,909
	93	Partner Communications Co. Ltd. ADR (Israel)*		1,753
	197	Shenandoah Telecommunications Co.		3,288
	117	SureWest Communications*		1,032
	40	Telefonos de Mexico SAB de CV, Series A ADR (Mexico)		663
	180	USA Mobility, Inc.*		1,962
				40,431
		Utilities—0.4%
	104	Cadiz, Inc.*		1,112
	130	China Natural Gas, Inc.*		1,527
	122	Consolidated Water Co., Inc. (Cayman Islands)		1,801
	113	Middlesex Water Co.		1,739
	200	Southwest Water Co.		1,114
				7,293
		Total Common Stocks (Cost $2,242,339)		1,984,674

Number of Shares			Value
		Money Market Fund—0.1%
	1,235	Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $1,235)	$	1,235
		Total Investments (Cost $2,243,574)—99.7%		1,985,909
		Other assets less liabilities—0.3%		5,516
		Net Assets—100.0%	$	1,991,425

ADR American Depositary Receipt

REIT Real Estate Investment Trust

*  Non-income producing security.

See Notes to Financial Statements.

35

Portfolio Composition

PowerShares Zacks Micro Cap Portfolio

Sector Breakdown (% of the Fund's Net Assets) as of October 31, 2009

Financials	30.1
Consumer Discretionary	19.8
Information Technology	18.0
Health Care	10.3
Industrials	9.3
Materials	3.9
Consumer Staples	3.4
Energy	3.2
Utilities	1.3
Telecommunication Services	0.4
Money Market Fund	0.4
Other	(0.1	)

Schedule of Investments

PowerShares Zacks Micro Cap Portfolio

October 31, 2009 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—99.7%
		Consumer Discretionary—19.8%
	38,984	AH Belo Corp., Class A*	$	159,834
	5,250	America's Car-Mart, Inc.*		108,833
	9,930	Asbury Automotive Group, Inc.*		96,718
	18,348	Audiovox Corp., Class A*		118,528
	21,940	Benihana, Inc., Class A*		106,190
	8,340	Big 5 Sporting Goods Corp.		123,015
	8,420	BJ's Restaurants, Inc.*		134,383
	25,856	Build-A-Bear Workshop, Inc.*		133,934
	8,056	California Pizza Kitchen, Inc.*		104,647
	16,554	Callaway Golf Co.		113,229
	17,426	Caribou Coffee Co., Inc.*		142,719
	6,212	Cato Corp. (The), Class A		122,439
	25,660	Charming Shoppes, Inc.*		116,240
	17,338	ChinaCast Education Corp.*		107,842
	3,268	Churchill Downs, Inc.		102,550
	4,436	Citi Trends, Inc.*		116,800
	11,146	Conn's, Inc.*		70,331
	4,406	Core-Mark Holding Co., Inc.*		120,592
	8,390	Dorman Products, Inc.*		122,662
	5,808	Drew Industries, Inc.*		111,165
	7,890	DSW, Inc., Class A*		151,488
	16,778	E.W. Scripps Co., Class A*		106,708
	9,810	Fred's, Inc., Class A		116,150
	4,868	Frisch's Restaurants, Inc.		114,155
	22,794	Furniture Brands International, Inc.*		96,875
	54,362	Gray Television, Inc.		95,134
	35,326	Great Wolf Resorts, Inc.*		117,989
	4,710	Group 1 Automotive, Inc.		119,728
	10,676	Haverty Furniture Cos., Inc.*		129,286

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	6,476	Helen of Troy Ltd.*	$	147,912
	16,848	Hot Topic, Inc.*		129,730
	10,696	Isle of Capri Casinos, Inc.*		82,894
	4,710	Jo-Ann Stores, Inc.*		125,380
	2,806	Jos. A. Bank Clothiers, Inc.*		114,990
	8,810	Kirkland's, Inc.*		110,830
	12,000	Landry's Restaurants, Inc.*		130,800
	14,592	La-Z-Boy, Inc.		103,603
	5,504	Lincoln Educational Services Corp.*		109,089
	8,086	Lithia Motors, Inc., Class A*		67,437
	9,272	M/I Homes, Inc.*		103,568
	9,842	Marcus Corp.		115,151
	16,062	MarineMax, Inc.*		109,382
	14,718	Media General, Inc., Class A		122,012
	6,182	Meritage Homes Corp.*		112,760
	3,924	Monro Muffler Brake, Inc.		121,605
	8,634	Movado Group, Inc.		90,484
	41,112	MTR Gaming Group, Inc.*		89,213
	24,610	Multimedia Games, Inc.*		120,835
	1,462	National Presto Industries, Inc.		127,092
	13,444	O'Charley's, Inc.*		94,242
	24,462	Pacific Sunwear of California, Inc.*		147,750
	12,894	Pep Boys—Manny, Moe & Jack (The)		113,080
	7,850	Perry Ellis International, Inc.*		107,310
	12,364	Pinnacle Entertainment, Inc.*		104,476
	21,882	Red Lion Hotels Corp.*		104,377
	6,172	Red Robin Gourmet Burgers, Inc.*		103,134
	23,894	Retail Ventures, Inc.*		153,161
	11,558	Rex Stores Corp.*		142,741
	14,984	Ruby Tuesday, Inc.*		99,793

See Notes to Financial Statements.

36

Schedule of Investments (Continued)

PowerShares Zacks Micro Cap Portfolio

October 31, 2009 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	8,184	Shoe Carnival, Inc.*	$	122,842
	13,344	Shuffle Master, Inc.*		104,217
	7,556	Shutterfly, Inc.*		106,540
	5,574	Skyline Corp.		97,489
	24,532	Spartan Motors, Inc.		122,415
	8,762	Speedway Motorsports, Inc.		118,637
	9,714	Stage Stores, Inc.		114,625
	8,282	Standard Motor Products, Inc.		69,238
	34,148	Standard Pacific Corp.*		102,444
	10,696	Steak N Shake Co. (The)*		124,608
	3,384	Steven Madden Ltd.*		137,052
	9,714	Sturm Ruger & Co., Inc.		103,163
	8,870	Superior Industries International, Inc.		117,794
	13,248	Tongxin International Ltd. (British Virgin Islands)*		117,775
	22,568	TravelCenters of America LLC*		127,961
	30,322	Tuesday Morning Corp.*		97,940
	39,348	Unifi, Inc.*		109,387
	9,764	Universal Travel Group*		114,044
	38,072	ValueVision Media, Inc., Class A*		120,688
	16,034	West Marine, Inc.*		122,179
	10,500	Wonder Auto Technology, Inc.*		135,870
				9,171,903
		Consumer Staples—3.4%
	28,122	Alliance One International, Inc.*		124,018
	4,632	American Italian Pasta Co., Class A*		125,851
	10,716	Central Garden & Pet Co.*		106,303
	11,520	Central Garden & Pet Co., Class A*		108,979
	17,142	Cott Corp. (Canada)*		135,422
	14,296	HQ Sustainable Maritime Industries, Inc.*		108,221
	9,930	Imperial Sugar Co.		124,026
	5,780	Medifast, Inc.*		127,275
	4,612	Nash Finch Co.		133,656
	6,290	Orchids Paper Products Co.*		112,591
	8,026	Pantry, Inc. (The)*		113,247
	4,612	Seneca Foods Corp., Class A*		127,706
	20,518	Smart Balance, Inc.*		108,335
				1,555,630
		Energy—3.2%
	12,678	Alon USA Energy, Inc.		106,495
	11,088	BreitBurn Energy Partners LP		126,736
	7,928	Calumet Specialty Products Partners LP		126,214
	14,688	Delek US Holdings, Inc.		99,144
	2,786	Enbridge Energy Management LLC*		129,354
	5,396	EV Energy Partner LP		135,332
	7,830	Genesis Energy LP		126,846
	5,946	Geokinetics, Inc.*		95,612
	5,024	Global Partners LP		124,093
	17,760	Green Plains Renewable Energy, Inc.*		130,891
	6,240	K-Sea Transportation Partners LP		75,753

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	4,700	TransMontaigne Partners LP	$	122,294
	26,886	USEC, Inc.*		103,780
				1,502,544
		Financials—30.1%
	16,268	Abington Bancorp, Inc.		111,598
	22,500	Advance America Cash Advance Centers, Inc.		111,150
	4,670	Alliance Financial Corp.		121,607
	4,416	American Capital Agency Corp. REIT		114,816
	17,920	American Equity Investment Life Holding Co.*		117,734
	5,740	American National Bankshares, Inc.		123,008
	4,366	American Physicians Capital, Inc.		123,470
	5,446	American Physicians Service Group, Inc.		131,085
	7,978	American Safety Insurance Holdings Ltd. (Bermuda)*		118,234
	7,300	AMERISAFE, Inc.*		135,342
	36,434	Ashford Hospitality Trust, Inc. REIT*		139,907
	5,388	Baldwin & Lyons, Inc., Class B		122,900
	8,860	Banco Latinoamericano de Comercio Exterior SA, Class E (Panama)		125,015
	21,978	Bancorp, Inc.*		112,088
	14,198	Bank Mutual Corp.		99,670
	4,740	Bank of The Ozarks, Inc.		107,835
	5,750	Berkshire Hills Bancorp, Inc.		118,162
	19,290	Boston Private Financial Holdings, Inc.		114,775
	12,874	BPW Acquisition Corp.*		127,002
	12,922	Brookline Bancorp, Inc.		126,506
	15,308	Cardinal Financial Corp.		124,760
	15,572	Cathay General Bancorp		137,501
	15,964	Centerstate Banks, Inc.		120,209
	5,808	Century Bancorp, Inc., Class A		141,309
	5,770	Chemical Financial Corp.		126,652
	32,724	China Housing & Land Development, Inc.*		100,790
	7,604	Columbia Banking System, Inc.		111,779
	6,908	Community Bank System, Inc.		128,558
	12,040	Compass Diversified Holdings		123,169
	26,748	CompuCredit Holdings Corp.*		87,733
	9,272	Danvers Bancorp, Inc.		127,305
	15,572	DiamondRock Hospitality Co. REIT*		118,503
	6,574	Duff & Phelps Corp., Class A		113,007
	9,460	DuPont Fabros Technology, Inc. REIT*		142,657
	14,884	Dynex Capital, Inc. REIT		120,709
	13,158	Eagle Bancorp, Inc.*		123,027
	15,200	East West Bancorp, Inc.		137,256
	21,234	Education Realty Trust, Inc. REIT		106,382
	5,986	EMC Insurance Group, Inc.		123,192
	9,370	Encore Capital Group, Inc.*		140,269
	9,538	ESSA Bancorp, Inc.		114,170
	4,328	Evercore Partners, Inc., Class A		141,266

See Notes to Financial Statements.

37

Schedule of Investments (Continued)

PowerShares Zacks Micro Cap Portfolio

October 31, 2009 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	21,234	FBR Capital Markets Corp.*	$	129,527
	11,520	Fifth Street Finance Corp.		113,242
	5,102	Financial Federal Corp.		104,183
	6,966	First Bancorp		94,459
	8,438	First Defiance Financial Corp.		121,676
	7,890	First Financial Holdings, Inc.		106,436
	9,460	First Mercury Financial Corp.		120,142
	10,892	First Potomac Realty Trust REIT		123,624
	11,038	Flushing Financial Corp.		123,957
	9,214	Gladstone Commercial Corp. REIT		118,216
	5,338	Great Southern Bancorp, Inc.		122,347
	6,702	Greenlight Capital Re Ltd., Class A (Cayman Islands)*		125,059
	15,670	Hallmark Financial Services, Inc.*		120,189
	12,824	Hercules Technology Growth Capital, Inc.		120,289
	9,596	Heritage Financial Corp.		120,046
	5,760	Home BancShares, Inc.		124,589
	11,030	Home Federal Bancorp, Inc.		127,397
	9,008	Horace Mann Educators Corp.		111,969
	5,692	Independent Bank Corp.		121,069
	2,944	Infinity Property & Casualty Corp.		113,844
	41,408	iStar Financial, Inc. REIT*		86,543
	13,050	JMP Group, Inc.		109,881
	37,092	LaBranche & Co., Inc.*		102,374
	17,318	Maiden Holdings Ltd. (Bermuda)		120,014
	8,830	Main Street Capital Corp.		117,351
	10,440	MarketAxess Holdings, Inc.*		124,027
	30,056	MCG Capital Corp.*		119,923
	17,044	Meadowbrook Insurance Group, Inc.		114,706
	16,122	Medical Properties Trust, Inc. REIT		128,976
	6,946	Mercer Insurance Group, Inc.		129,057
	4,788	NASB Financial, Inc.		117,785
	4,921	National Bankshares, Inc.		133,408
	686	National Western Life Insurance Co., Class A		120,846
	10,106	Nelnet, Inc., Class A*		141,787
	35,944	NorthStar Realty Finance Corp. REIT		126,882
	7,260	NYMAGIC, Inc.		103,745
	5,142	Oppenheimer Holdings, Inc., Class A (Canada)		131,121
	9,910	Oriental Financial Group, Inc.		105,542
	6,624	PacWest Bancorp		112,476
	15,504	PennantPark Investment Corp.		119,846
	6,770	Peoples Financial Corp.		117,595
	9,910	Pinnacle Financial Partners, Inc.*		125,857
	29,634	PMI Group, Inc. (The)		71,714
	12,726	Prospect Acquisition Corp.*		125,733
	11,872	Radian Group, Inc.		68,739
	42,880	RAIT Financial Trust REIT*		79,328
	8,438	Renasant Corp.		123,532
	23,158	Resource Capital Corp. REIT		112,085

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	20,900	Rodman & Renshaw Capital Group, Inc.*	$	89,452
	11,480	Safeguard Scientifics, Inc.*		111,815
	3,826	Safety Insurance Group, Inc.		128,056
	7,732	Sandy Spring Bancorp, Inc.		89,382
	12,934	Santander BanCorp*		148,741
	4,464	SCBT Financial Corp.		115,484
	10,990	SeaBright Insurance Holdings, Inc.*		122,868
	4,366	Simmons First National Corp., Class A		127,749
	5,592	Southside Bancshares, Inc.		116,258
	8,536	StellarOne Corp.		90,567
	17,230	Sterling Bancshares, Inc.		95,971
	10,216	Stewart Information Services Corp.		91,331
	7,458	Texas Capital Bancshares, Inc.*		108,663
	23,548	Thomas Weisel Partners Group, Inc.*		106,672
	10,744	Transcontinental Realty Investors, Inc.*		116,787
	16,680	Tree.com, Inc.*		130,271
	10,204	Triangle Capital Corp.		122,346
	7,652	TriCo Bancshares		111,872
	11,872	Umpqua Holdings Corp.		117,652
	25,218	United Community Banks, Inc.*		102,385
	10,862	United Financial Bancorp, Inc.		139,577
	5,692	United Security Bancshares		117,824
	25,022	Universal Insurance Holdings, Inc.		132,867
	7,850	Walter Investment Management Corp. REIT		102,207
	8,144	WesBanco, Inc.		115,238
	19,918	Western Alliance Bancorp*		86,643
	12,854	Western Liberty Bancorp*		103,475
	4,514	Wintrust Financial Corp.		127,340
	27,142	Xinyuan Real Estate Co. Ltd. ADR (China)*		109,925
				13,944,658
		Health Care—10.3%
	3,876	Air Methods Corp.*		118,373
	44,950	Allied Healthcare International, Inc.*		119,567
	21,538	Allion Healthcare, Inc.*		138,705
	7,624	America Service Group, Inc.		100,027
	9,028	American Dental Partners, Inc.*		107,343
	9,156	Angiodynamics, Inc.*		138,256
	18,604	BioScrip, Inc.*		140,274
	8,320	Cantel Medical Corp.*		133,619
	10,008	Chindex International, Inc.*		139,512
	41,702	Continucare Corp.*		109,259
	19,232	Cornerstone Therapeutics, Inc.*		107,699
	15,416	Cypress Bioscience, Inc.*		94,654
	7,124	Emergent Biosolutions, Inc.*		102,728
	34,422	Five Star Quality Care, Inc.*		118,756
	5,044	Gentiva Health Services, Inc.*		121,056
	19,192	Geron Corp.*		117,263

See Notes to Financial Statements.

38

Schedule of Investments (Continued)

PowerShares Zacks Micro Cap Portfolio

October 31, 2009 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	5,592	Greatbatch, Inc.*	$	109,995
	22,548	Health Fitness Corp.*		134,837
	10,284	Healthspring, Inc.*		147,370
	62,996	Hemispherx Biopharma, Inc.*		91,344
	5,592	Hi-Tech Pharmacal Co., Inc.*		101,998
	3,434	ICU Medical, Inc.*		120,190
	5,692	Invacare Corp.		127,672
	53,870	Keryx Biopharmaceuticals, Inc.*		107,740
	7,732	Kindred Healthcare, Inc.*		113,660
	18,810	Maxygen, Inc.*		104,960
	19,982	MedQuist, Inc.		115,496
	27,818	NovaMed, Inc.*		112,107
	10,088	Odyssey HealthCare, Inc.*		140,627
	24,178	Oncothyreon, Inc.*		85,348
	7,752	Palomar Medical Technologies, Inc.*		78,760
	5,788	Par Pharmaceutical Cos., Inc.*		121,374
	34,050	QLT, Inc. (Canada)*		118,834
	5,788	RehabCare Group, Inc.*		108,525
	8,860	Res-Care, Inc.*		106,586
	29,584	Sciclone Pharmaceuticals, Inc.*		72,777
	15,210	Sinovac Biotech Ltd. (China)*		112,706
	18,712	Spectrum Pharmaceuticals, Inc.*		77,655
	47,198	SuperGen, Inc.*		110,443
	7,530	Triple-S Management Corp., Class B*		125,751
	10,849	Vanda Pharmaceuticals, Inc.*		110,660
	10,008	Vital Images, Inc.*		114,191
				4,778,697
		Industrials—9.3%
	5,740	AAR Corp.*		112,561
	36,434	Air Transport Services Group, Inc.*		94,364
	13,030	Aircastle Ltd. (Bermuda)		103,198
	21,322	APAC Customer Services, Inc.*		137,527
	5,396	Applied Signal Technology, Inc.		110,564
	4,220	Arkansas Best Corp.		108,960
	16,650	Ascent Solar Technologies, Inc.*		84,083
	7,890	Beacon Roofing Supply, Inc.*		113,300
	14,002	China Yuchai International Ltd. (Bermuda)		149,821
	5,102	Dollar Thrifty Automotive Group, Inc.*		94,438
	6,662	Ducommun, Inc.		113,387
	10,234	Dycom Industries, Inc.*		101,112
	5,642	Encore Wire Corp.		117,072
	7,830	Ennis, Inc.		118,625
	23,068	Force Protection, Inc.*		101,499
	14,886	Fushi Copperweld, Inc.*		102,862
	5,682	G&K Services, Inc., Class A		125,856
	9,498	Gibraltar Industries, Inc.		102,768
	12,500	Griffon Corp.*		109,625
	4,170	ICF International, Inc.*		119,471
	6,574	Insituform Technologies, Inc., Class A*		139,369
	4,102	International Shipholding Corp.		135,981

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	10,254	Kelly Services, Inc., Class A	$	113,614
	7,358	Marten Transport Ltd.*		129,059
	11,450	Miller Industries, Inc.*		115,073
	7,242	Mobile Mini, Inc.*		105,009
	8,812	Quanex Building Products Corp.		131,035
	13,522	Republic Airways Holdings, Inc.*		108,311
	9,754	Rush Enterprises, Inc., Class A*		106,514
	7,840	Saia, Inc.*		114,934
	5,298	School Specialty, Inc.*		117,881
	20,302	Spherion Corp.*		100,495
	7,066	Sterling Construction Co., Inc.*		113,975
	3,168	Universal Forest Products, Inc.		113,034
	6,320	Viad Corp.		110,600
	10,304	Volt Information Sciences, Inc.*		83,565
	32,380	WCA Waste Corp.*		129,844
	9,214	Willis Lease Finance Corp.*		117,294
				4,306,680
		Information Technology—18.0%
	10,342	Actel Corp.*		123,277
	37,710	Adaptec, Inc.*		120,295
	31,744	Advanced Analogic Technologies, Inc.*		99,994
	26,788	Anadigics, Inc.*		85,989
	7,408	Anaren, Inc.*		108,305
	31,460	BigBand Networks, Inc.*		116,402
	5,004	Black Box Corp.		132,656
	48,080	CDC Corp., Class A (Hong Kong)*		112,026
	31,498	Ciber, Inc.*		101,423
	20,018	Clicksoftware Technologies Ltd. (Israel)*		103,293
	20,586	Cogo Group, Inc.*		115,487
	9,302	Cohu, Inc.		105,857
	11,264	CPI International, Inc.*		111,514
	15,110	Cray, Inc.*		112,721
	14,788	Digi International, Inc.*		117,565
	15,464	DSP Group, Inc.*		89,382
	9,666	Dynamics Research Corp.*		123,821
	9,420	Electro Scientific Industries, Inc.*		103,055
	11,166	Electronics for Imaging, Inc.*		130,196
	6,054	EMS Technologies, Inc*		105,521
	8,734	EPIQ Systems, Inc.*		110,136
	17,142	Exar Corp.*		118,280
	36,042	EXFO Electro Optical Engineering, Inc. (Canada)*		131,914
	8,478	ExlService Holdings, Inc.*		115,386
	18,016	Harris Stratex Networks, Inc., Class A*		113,501
	17,720	Hutchinson Technology, Inc.*		103,130
	14,886	Incredimail Ltd. (Israel)		112,240
	17,966	infoGROUP, Inc.		117,857
	15,838	Innodata Isogen, Inc.*		102,630
	33,460	Integrated Silicon Solution, Inc.*		117,110
	39,339	Internap Network Services Corp.*		125,885

See Notes to Financial Statements.

39

Schedule of Investments (Continued)

PowerShares Zacks Micro Cap Portfolio

October 31, 2009 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	15,788	Internet Brands, Inc., Class A*	$	117,463
	9,360	Intevac, Inc.*		95,472
	5,790	JDA Software Group, Inc.*		114,874
	11,560	Knot, Inc. (The)*		123,345
	56,030	Lattice Semiconductor Corp.*		107,017
	31,016	Limelight Networks, Inc.*		108,246
	4,562	Loral Space & Communications, Inc.*		120,528
	7,692	Mellanox Technologies Ltd. (Israel)*		134,225
	12,756	Mercury Computer Systems, Inc.*		136,489
	4,366	Multi-Fineline Electronix, Inc.*		118,973
	19,194	Nanometrics, Inc.*		157,391
	15,964	Ness Technologies, Inc.*		105,203
	11,088	Novatel Wireless, Inc.*		98,905
	7,732	OmniVision Technologies, Inc.*		94,794
	48,474	Openwave Systems, Inc.*		110,036
	8,634	Oplink Communications, Inc.*		128,042
	13,336	Orbotech Ltd. (Israel)*		124,025
	6,868	OSI Systems, Inc.*		134,819
	15,208	Perficient, Inc.*		123,793
	25,444	Pervasive Software, Inc.*		124,676
	26,572	Photronics, Inc.*		111,071
	47,002	Planar Systems, Inc.*		106,694
	43,566	Qiao Xing Mobile Communication Co. Ltd. (China)*		131,569
	11,676	Radiant Systems, Inc.*		114,892
	14,198	RADvision Ltd. (Israel)*		87,602
	11,186	RADWARE Ltd. (Israel)*		129,422
	16,778	Seachange International, Inc.*		113,587
	12,628	Sierra Wireless, Inc. (Canada)*		113,778
	8,674	Sigma Designs, Inc.*		104,175
	18,782	Silicon Graphics International Corp.*		111,941
	26,494	SMART Modular Technologies (WWH), Inc.*		107,566
	10,216	Smith Micro Software, Inc.*		92,761
	14,984	SonicWALL, Inc.*		118,973
	14,816	Spectrum Control, Inc.*		125,195
	24,336	Symmetricom, Inc.*		116,569
	17,564	Telestone Technologies Corp.*		142,444
	48,670	Trident Microsystems, Inc.*		91,500
	10,990	TTM Technologies, Inc.*		111,768
	60,348	Utstarcom, Inc.*		109,230
	13,266	Virtusa Corp.*		119,129
	27,278	White Electronic Designs Corp.*		119,750
	10,940	Zoran Corp.*		97,038
				8,341,818
		Materials—3.9%
	12,678	A.M. Castle & Co.		142,881
	3,160	AEP Industries, Inc.*		110,221
	23,854	Boise, Inc.*		114,022
	11,756	Buckeye Technologies, Inc.*		105,334

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	6,770	Bway Holding Co.*	$	120,303
	8,458	China Agritech, Inc.*		124,840
	10,734	China Green Agriculture, Inc.*		118,289
	5,416	Hawkins, Inc.		113,844
	8,536	Innospec, Inc.		100,895
	31,302	International Royalty Corp. (Canada)		117,696
	15,464	KapStone Paper and Packaging Corp.*		107,320
	2,306	Schweitzer-Mauduit International, Inc.		119,105
	11,696	Spartech Corp.		111,931
	32,282	US Energy Corp. Wyoming*		169,803
	43,566	US Gold Corp.*		117,628
				1,794,112
		Telecommunication Services—0.4%
	10,106	SureWest Communications*		89,135
	9,714	USA Mobility, Inc.		105,883
				195,018
		Utilities—1.3%
	7,634	Brookfield Infrastructure Partners LP (Bermuda)		110,693
	10,382	China Natural Gas, Inc.*		121,989
	6,956	Empire District Electric Co. (The)		125,625
	34,736	Star Gas Partners LP		135,470
	5,642	Unitil Corp.		116,733
				610,510
		Total Common Stocks and Other Equity Interests (Cost $46,617,554)		46,201,570
		Money Market Fund—0.4%
	178,993	Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $178,993)		178,993
		Total Investments (Cost $46,796,547)—100.1%		46,380,563
		Liabilities in excess of other assets—(0.1%)		(41,265	)
		Net Assets—100.0%	$	46,339,298

ADR American Depositary Receipt

REIT Real Estate Investment Trust

*  Non-income producing security.

See Notes to Financial Statements.

40

Portfolio Composition

PowerShares Zacks Small Cap Portfolio

Sector Breakdown (% of the Fund's Net Assets) as of October 31, 2009

Industrials	21.6
Information Technology	18.1
Consumer Discretionary	14.7
Financials	14.2
Health Care	10.2
Energy	7.6
Materials	6.2
Consumer Staples	3.6
Utilities	3.3
Telecommunication Services	0.5
Money Market Fund	0.2
Other	(0.2	)

Schedule of Investments

PowerShares Zacks Small Cap Portfolio

October 31, 2009 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—14.7%
	4,004	America's Car-Mart, Inc.*	$	83,003
	10,456	Amerigon, Inc.*		67,232
	6,331	Asbury Automotive Group, Inc.*		61,664
	11,337	Brown Shoe Co., Inc.		117,565
	4,430	Cato Corp. (The), Class A		87,315
	11,102	Christopher & Banks Corp.		67,611
	3,019	Citi Trends, Inc.*		79,490
	3,280	Core-Mark Holding Co., Inc.*		89,774
	1,300	Deckers Outdoor Corp.*		116,571
	8,290	Dillard's, Inc., Class A		112,910
	3,535	DineEquity, Inc.*		74,801
	5,019	Grand Canyon Education, Inc.*		81,408
	2,987	Group 1 Automotive, Inc.		75,930
	6,168	Hawk Corp., Class A*		85,859
	8,335	Interval Leisure Group, Inc.*		93,019
	7,840	iRobot Corp.*		104,821
	3,771	Jo-Ann Stores, Inc.*		100,384
	6,368	Kirkland's, Inc.*		80,109
	12,990	La-Z-Boy, Inc.		92,229
	4,325	Lincoln Educational Services Corp.*		85,721
	6,361	Maidenform Brands, Inc.*		89,308
	9,693	Monarch Casino & Resort, Inc.*		67,269
	11,124	New York Times Co. (The), Class A		88,658
	8,456	O'Charley's, Inc.*		59,277
	9,934	Orient-Express Hotels Ltd., Class A*		85,432
	6,686	Overstock.com, Inc.*		93,604
	4,793	Rentrak Corp.*		73,668
	5,471	Shutterfly, Inc.*		77,141
	6,360	Skechers U.S.A., Inc., Class A*		138,775

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	14,514	Smith & Wesson Holding Corp.*	$	61,975
	7,147	Sonic Automotive, Inc., Class A*		63,894
	12,507	Spartan Motors, Inc.		62,410
	10,155	Stamps.com, Inc.*		101,956
	8,644	Steak N Shake Co. (The)*		100,703
	8,000	Stein Mart, Inc.*		76,000
	7,051	Sturm Ruger & Co., Inc.		74,882
	2,266	UniFirst Corp.		95,331
				3,167,699
		Consumer Staples—3.6%
	2,790	American Italian Pasta Co., Class A*		75,804
	2,730	Andersons, Inc. (The)		84,712
	2,820	Boston Beer Co., Inc., Class A*		107,160
	4,312	Calavo Growers, Inc.		76,969
	10,301	HQ Sustainable Maritime Industries, Inc.*		77,979
	2,030	J & J Snack Foods Corp.		79,515
	5,049	Pantry, Inc. (The)*		71,241
	14,575	Revlon, Inc., Class A*		122,867
	6,230	Winn-Dixie Stores, Inc.*		69,091
				765,338
		Energy—7.6%
	8,766	Alon USA Energy, Inc.		73,634
	4,990	Calumet Specialty Products Partners LP		79,441
	8,350	Capital Product Partners LP (Marshall Islands)		76,820
	2,892	Dawson Geophysical Co.*		69,842
	6,052	Geokinetics, Inc.*		97,316

See Notes to Financial Statements.

41

Schedule of Investments (Continued)

PowerShares Zacks Small Cap Portfolio

October 31, 2009 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	8,447	Georesources, Inc.*	$	93,677
	2,750	Gulfmark Offshore, Inc.*		76,093
	12,620	Gulfport Energy Corp.*		96,291
	2,017	Inergy Holdings LP		99,599
	6,384	Natural Gas Services Group, Inc.*		107,698
	2,560	Overseas Shipholding Group, Inc.		100,480
	10,510	Patriot Coal Corp.*		118,763
	10,680	RPC, Inc.		99,858
	11,430	TETRA Technologies, Inc.*		108,128
	4,930	Tsakos Energy Navigation Ltd. (Bermuda)		76,514
	12,300	Union Drilling, Inc.*		93,972
	13,500	Western Refining, Inc.*		75,735
	1,997	World Fuel Services Corp.		101,547
				1,645,408
		Financials—14.2%
	10,838	Abington Bancorp, Inc.		74,349
	2,633	American Physicians Capital, Inc.		74,461
	5,270	AMERISAFE, Inc.*		97,706
	7,157	AmTrust Financial Services, Inc.		80,731
	8,950	Bank Mutual Corp.		62,829
	14,023	Broadpoint Gleacher Securities, Inc.*		89,327
	11,243	Cardinal Financial Corp.		91,630
	14,512	China Housing & Land Development, Inc.*		44,697
	5,591	CNA Surety Corp.*		80,846
	5,407	eHealth, Inc.*		76,942
	6,948	EZCORP, Inc., Class A*		90,116
	5,763	First Defiance Financial Corp.		83,102
	4,190	Great Southern Bancorp, Inc.		96,035
	8,985	Hercules Technology Growth Capital, Inc.		84,279
	7,748	Horace Mann Educators Corp.		96,308
	2,125	Infinity Property & Casualty Corp.		82,174
	4,069	Life Partners Holdings, Inc.		69,132
	8,402	MarketAxess Holdings, Inc.		99,816
	11,119	Meadowbrook Insurance Group, Inc.		74,831
	1,780	Navigators Group, Inc. (The)*		94,465
	6,137	Nelnet, Inc., Class A*		86,102
	6,220	Oriental Financial Group, Inc.		66,243
	1,382	Park National Corp.		80,267
	7,535	Penson Worldwide, Inc.*		73,466
	4,802	Peoples Bancorp, Inc.		51,573
	5,919	Renasant Corp.		86,654
	7,500	Rewards Network, Inc.		80,700
	5,462	Sandy Spring Bancorp, Inc.		63,141
	3,875	Southside Bancshares, Inc.		80,561
	6,401	SWS Group, Inc.		85,645
	35	Teton Advisors, Inc., Class B*		353
	8,827	Tree.com, Inc.*		68,939
	16,236	United America Indemnity Ltd., Class A*		113,814

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	6,617	United Financial Bancorp, Inc.	$	85,028
	3,250	W.P. Carey & Co. LLC		90,025
	9,080	Westfield Financial, Inc.		73,094
	7,660	Wilmington Trust Corp.		92,303
	3,679	World Acceptance Corp.*		92,306
	12,979	Xinyuan Real Estate Co. Ltd. ADR (China)*		52,565
				3,066,555
		Health Care—10.2%
	9,220	Albany Molecular Research, Inc.*		75,051
	8,070	Align Technology, Inc.*		126,860
	2,794	Almost Family, Inc.*		84,798
	5,680	Cantel Medical Corp.*		91,221
	8,759	Cardiovascular Systems, Inc.*		42,831
	14,628	Celera Corp.*		90,547
	6,750	Chindex International, Inc.*		94,095
	9,778	Cornerstone Therapeutics, Inc.*		54,757
	5,256	Cyberonics, Inc.*		76,002
	10,816	Enzon Pharmaceuticals, Inc.*		90,746
	2,810	Genoptix, Inc.*		97,760
	5,622	Hi-Tech Pharmacal Co., Inc.*		102,545
	2,253	ICU Medical, Inc.*		78,855
	11,740	Impax Laboratories, Inc.*		104,251
	3,780	Martek Biosciences Corp.*		67,889
	11,108	Maxygen, Inc.*		61,983
	7,022	Medical Action Industries, Inc.*		76,821
	7,034	Omnicell, Inc.*		69,214
	4,195	PharMerica Corp.*		64,729
	11,492	Pozen, Inc.*		65,274
	3,629	RehabCare Group, Inc.*		68,044
	6,286	Somanetics Corp.*		93,976
	13,130	Spectrum Pharmaceuticals, Inc.*		54,489
	3,923	SurModics, Inc.*		100,468
	10,272	Symmetry Medical, Inc.*		81,868
	11,440	Vascular Solutions, Inc.*		88,317
	4,780	Zoll Medical Corp.*		92,828
				2,196,219
		Industrials—21.6%
	4,461	AAON, Inc.		80,343
	4,180	ABM Industries, Inc.		78,500
	12,147	Aircastle Ltd. (Bermuda)		96,204
	2,024	Allegiant Travel Co.*		76,325
	9,999	Altra Holdings, Inc.*		87,691
	3,750	American Woodmark Corp.		73,763
	1,180	Ameron International Corp.		69,596
	17,654	APAC Customer Services, Inc.*		113,868
	6,020	Apogee Enterprises, Inc.		79,705
	5,250	Beacon Roofing Supply, Inc.*		75,390
	13,447	CBIZ, Inc.*		94,667
	5,584	China Fire & Security Group, Inc.*		79,404

See Notes to Financial Statements.

42

Schedule of Investments (Continued)

PowerShares Zacks Small Cap Portfolio

October 31, 2009 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	7,512	Comfort Systems USA, Inc.	$	81,881
	5,144	Cornell Cos., Inc.*		117,489
	2,390	CoStar Group, Inc.*		92,780
	4,292	DynCorp International, Inc., Class A*		72,964
	9,666	Excel Maritime Carriers Ltd. (Liberia)		54,516
	3,422	Exponent, Inc.*		89,006
	10,006	Federal Signal Corp.		61,437
	16,885	Force Protection, Inc.*		74,294
	4,423	FreightCar America, Inc.		104,294
	15,171	Great Lakes Dredge & Dock Corp.		92,998
	9,101	Griffon Corp.*		79,816
	13,777	Hawaiian Holdings, Inc.*		97,679
	7,265	Herley Industries, Inc.*		82,167
	3,387	ICF International, Inc.*		97,038
	4,780	Insituform Technologies, Inc., Class A*		101,336
	8,619	Insteel Industries, Inc.		95,843
	7,948	Kadant, Inc.*		102,450
	9,230	KHD Humboldt Wedag International Ltd. (Canada)*		84,547
	12,861	Kimball International, Inc., Class B		96,458
	8,990	Knoll, Inc.		88,102
	2,936	LB Foster Co., Class A*		82,443
	4,985	Marten Transport Ltd.*		87,437
	2,528	Northwest Pipe Co.*		76,093
	3,935	Orion Marine Group, Inc.*		74,922
	2,467	Powell Industries, Inc.*		90,736
	3,057	Raven Industries, Inc.		75,508
	12,262	Seaspan Corp. (Hong Kong)		106,189
	13,369	SmartHeat, Inc.*		119,519
	5,208	Standard Parking Corp.*		91,661
	5,520	Sterling Construction Co., Inc.*		89,038
	5,005	Sun Hydraulics Corp.		95,395
	10,898	TBS International Ltd., Class A (Bermuda)*		89,691
	4,002	Tennant Co.		106,693
	11,874	Titan International, Inc.		99,742
	5,347	Trex Co., Inc.*		85,071
	2,198	Triumph Group, Inc.		102,888
	6,884	TrueBlue, Inc.*		83,296
	4,746	Tutor Perini Corp.*		83,767
	1,895	United Stationers, Inc.*		89,330
	1,977	Universal Forest Products, Inc.		70,539
	4,960	Viad Corp.		86,800
				4,659,309
		Information Technology—18.1%
	9,105	Acxiom Corp.*		104,525
	4,640	ArcSight, Inc.*		114,701
	8,374	Ariba, Inc.*		98,981
	5,639	Avocent Corp.*		140,242
	10,029	CEVA, Inc.*		101,594

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	5,075	Checkpoint Systems, Inc.*	$	68,868
	3,900	Constant Contact, Inc.*		64,623
	4,397	DealerTrack Holdings, Inc.*		72,463
	8,614	Digi International, Inc.*		68,481
	15,060	DivX, Inc.*		72,439
	10,083	DSP Group, Inc.*		58,280
	10,375	Echelon Corp.*		141,619
	7,701	Electronics for Imaging, Inc.*		89,794
	12,509	Exar Corp.*		86,312
	6,854	EZchip Semiconductor Ltd. (Israel)*		82,042
	4,580	Fair Isaac Corp.		93,111
	11,130	GSE Systems, Inc.*		67,003
	12,000	InfoSpace, Inc.*		102,840
	8,539	Insight Enterprises, Inc.*		89,830
	5,448	Interactive Intelligence, Inc.*		91,363
	11,426	IXYS Corp.*		76,554
	10,930	Measurement Specialties, Inc.*		84,270
	5,557	Mellanox Technologies Ltd. (Israel)*		96,970
	7,692	Mercury Computer Systems, Inc.*		82,304
	11,247	Micrel, Inc.		84,015
	3,960	Monolithic Power Systems, Inc.*		79,160
	3,835	Multi-Fineline Electronix, Inc.*		104,504
	6,937	Oplink Communications, Inc.*		102,876
	3,112	Pegasystems, Inc.		89,221
	9,265	Pericom Semiconductor Corp.*		87,184
	5,275	Rimage Corp.*		97,060
	13,180	Sapient Corp.*		107,285
	9,600	Seachange International, Inc.*		64,992
	7,705	Smith Micro Software, Inc.*		69,961
	11,550	SonicWALL, Inc.*		91,707
	4,982	Sourcefire, Inc.*		101,135
	9,344	StarTek, Inc.*		54,195
	12,700	Symyx Technologies, Inc.*		74,549
	4,819	Tekelec*		72,381
	8,582	TiVo, Inc.*		93,372
	3,827	TNS, Inc.*		108,151
	12,327	TriQuint Semiconductor, Inc.*		66,443
	5,699	Tyler Technologies, Inc.*		108,395
	9,425	Virtusa Corp.*		84,636
				3,890,431
		Materials—6.2%
	3,313	Arch Chemicals, Inc.		91,737
	6,949	Calgon Carbon Corp.*		110,072
	7,557	China Green Agriculture, Inc.*		83,278
	2,194	Clearwater Paper Corp.*		99,322
	8,504	Glatfelter		89,887
	4,684	Innophos Holdings, Inc.		90,635
	2,645	Kaiser Aluminum Corp.		105,668
	3,160	Koppers Holdings, Inc.		82,539
	4,990	LSB Industries, Inc.*		61,876

See Notes to Financial Statements.

43

Schedule of Investments (Continued)

PowerShares Zacks Small Cap Portfolio

October 31, 2009 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	8,968	Neenah Paper, Inc.	$	92,819
	4,889	Quaker Chemical Corp.		100,714
	7,090	Spartech Corp.		67,851
	5,000	Universal Stainless & Alloy Products, Inc.*		75,450
	9,300	Wausau Paper Corp.		81,561
	5,476	Zep, Inc.*		93,640
				1,327,049
		Telecommunication Services—0.5%
	4,910	iPCS, Inc.*		117,202
		Utilities—3.3%
	6,612	Brookfield Infrastructure Partners LP (Bermuda)		95,874
	2,631	Chesapeake Utilities Corp.		83,350
	5,820	El Paso Electric Co.*		109,125
	4,819	Empire District Electric Co. (The)		87,031
	2,611	Laclede Group, Inc. (The)		80,184
	7,154	PNM Resources, Inc.		76,691
	3,621	UIL Holdings Corp.		92,987
	4,270	Unitil Corp.		88,347
				713,589
		Total Common Stocks and Other Equity Interests (Cost $22,570,072)		21,548,799
		Money Market Fund—0.2%
	46,146	Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $46,146)		46,146
		Total Investments (Cost $22,616,218)—100.2%		21,594,945
		Liabilities in excess of other assets—(0.2%)		(34,482	)
		Net Assets—100.0%	$	21,560,463

ADR American Depositary Receipt

*  Non-income producing security.

See Notes to Financial Statements.

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Statements of Assets and Liabilities

October 31, 2009 (Unaudited)

	PowerShares Dynamic Large Cap Growth Portfolio		PowerShares Dynamic Large Cap Portfolio		PowerShares Dynamic Large Cap Value Portfolio		PowerShares Dynamic Mid Cap Growth Portfolio		PowerShares Dynamic Mid Cap Portfolio		PowerShares Dynamic Mid Cap Value Portfolio
ASSETS:
Investments at value	$	247,591,007	$	38,435,259	$	315,227,885	$	127,300,618	$	21,743,992	$	42,137,655
Receivables:
Dividends		227,959		52,834		583,369		8,257		3,759		12,318
Shares sold		—		—		779,698		—		—		—
Expense waivers		—		7,246		—		3,073		8,446		7,603
Investments sold		—		1,711		—		2,326,147		1,252		4,983
Other assets		3,234		1,561		5,255		1,774		1,227		1,373
Total Assets		247,822,200		38,498,611		316,596,207		129,639,869		21,758,676		42,163,932
LIABILITIES:
Due to custodian		10,895		4,647		10,095		6,792		3,680		4,635
Payables:
Investments purchased		—		—		775,399		—		—		—
Expense recapture		—		—		9,631		—		—		—
Shares purchased		—		—		—		2,326,324		—		—
Accrued advisory fees		108,646		16,735		136,567		58,430		9,628