N-CSR 1 a11-9670_1ncsr.htm N-CSR

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:		April 30, 2011

Item 1. Reports to Stockholders.

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

2011 Annual Report to Shareholders

April 30, 2011

PowerShares Buyback Achievers^TM Portfolio (PKW)

PowerShares Dividend Achievers^TM Portfolio (PFM)

PowerShares Financial Preferred Portfolio (PGF)

PowerShares High Yield Equity Dividend
Achievers^TM Portfolio (PEY)

PowerShares International Dividend
Achievers^TM Portfolio (PID)

Table of Contents

The Market Environment					2

Manager's Analysis					4

Frequency Distribution of Discounts & Premiums					14

Fees and Expenses					16

Dividend Income Portfolios

Schedules of Investments

PowerShares Buyback Achievers^TM Portfolio (PKW)					18

PowerShares Dividend Achievers^TM Portfolio (PFM)					20

PowerShares Financial Preferred Portfolio (PGF)					23

PowerShares High Yield Equity Dividend Achievers^TM Portfolio (PEY)					24

PowerShares International Dividend Achievers^TM Portfolio (PID)					25

Statements of Assets and Liabilities					28

Statements of Operations					29

Statements of Changes in Net Assets					30

Financial Highlights					32

Notes to Financial Statements					35

Report of Independent Registered Public Accounting Firm					45

Tax Information					46

Trustees and Officers					47

Board Considerations Regarding Continuation of Investment Advisory Agreement					54

The Market Environment

For the fiscal year ended April 30, 2011, the market environment saw continued improvement. Global equities ended up 18.25% after declining the first two months of the period. Emerging markets led equities up during the fiscal year with the MSCI Emerging Markets Index returning 20.67%. Developed International and U.S. Equities followed closely behind emerging markets with the MSCI EAFE Index up 19.18% and the S&P 500^® up 17.24%. Volatility continued to decline on a year-over-year basis with the CBOE Volatility Index^® (VIX^®) dropping 33.11% for the fiscal year. Fixed income markets moved higher for the fiscal year with the Barclays Aggregate Bond Index ending up 5.37%.

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Manager's Analysis

PowerShares Buyback Achievers^TM Portfolio (ticker: PKW)

The PowerShares Buyback Achievers^TM Portfolio (the "Fund") seeks investment results that correspond (before fees and expenses) generally to the price and yield performance of the Share BuyBack Achievers^TM Index (the "Index").

For the fiscal year ended April 30, 2011, the Fund returned 22.34%. Over this same year, the Index returned 23.11%, while the S&P 500^® Index returned 17.24% and the Russell 3000^® Value Index returned 15.17%. The Fund benefited from positive performance of securities of companies in consumer discretionary and health care.

Sector Breakdown (% of the Fund's

Net Assets) as of April 30, 2011

Health Care	26.9
Consumer Discretionary	23.3
Information Technology	22.9
Consumer Staples	11.9
Financials	8.0
Industrials	6.0
Materials	0.9
Money Market Fund	0.1
Utilities	0.1
Telecommunication Services	0.0
Liabilities in excess of other assets	(0.1	)

Style Allocation (% of the Fund's

Total Investments) as of April 30, 2011

Large-Cap Value					43.1
Large-Cap Growth					32.9
Mid-Cap Growth					9.6
Mid-Cap Value					9.4
Small-Cap Value					2.7
Small-Cap Growth					2.3

Top Ten Fund Holdings (% of the Fund's

Net Assets) as of April 30, 2011

*Security*
Wal-Mart Stores, Inc.					5.0
International Business Machines Corp.					5.0
Hewlett-Packard Co.					4.9
UnitedHealth Group, Inc.					4.3
Amgen, Inc.					4.2
Bristol-Myers Squibb Co.					3.8
Texas Instruments, Inc.					3.3
Time Warner, Inc.					3.3
Walgreen Co.					3.1
DIRECTV, Class A					3.1
Total					40.0

Manager's Analysis (Continued)

PowerShares Buyback Achievers^TM Portfolio (ticker: PKW)

Growth of a $10,000 Investment Since Inception^†

Fund Performance History (%)							As of April 30, 2011
	Avg Ann^††						Fund Inception
	1 Year			3 Year			Avg Ann^††			Cumulative
Index
Share BuyBack Achievers^TM Index		23.11	%		8.09	%		3.56	%		16.48	%
Russell 3000^® Value Index		15.17	%		0.39	%		-0.95	%		-4.07	%
S&P 500^® Index		17.24	%		1.74	%		1.24	%		5.50	%
Fund
Net Asset Value ("NAV") Return		22.34	%		7.42	%		2.82	%		12.90	%
Share Price Return		22.29	%		7.43	%		2.78	%		12.72	%

Fund Inception: December 20, 2006

Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2012. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.97%. In the Financial Highlights section of this Shareholder Report, the Fund's net total operating expense ratio was determined to be 0.70%, while the Fund's gross total expense ratio was determined to be 1.00%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.

Index performance results are based upon a hypothetical investment in its constituent securities. Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index does not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results actual investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.

The Russell 3000^® Value Index and S&P 500^® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 1,957 and 500 common stocks, respectively.

^† Fund and underlying Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on the closest month-end to the Fund's inception date.

^†† Average annualized.

Manager's Analysis

PowerShares Dividend Achievers^TM Portfolio (ticker: PFM)

The PowerShares Dividend Achievers^TM Portfolio (the "Fund") seeks investment results that correspond (before fees and expenses) generally to the price and yield performance of the Broad Dividend Achievers^TM Index (the "Index").

For the fiscal year ended April 30, 2011, the Fund returned 18.39%. Over this same year, the Index returned 18.49%, while the S&P 500^® Index returned 17.24% and the Russell 3000^® Value Index returned 15.17%. The Fund benefited from positive performance of securities of companies in energy and consumer staples sectors. Fund performance was positive for securities of companies within each sector.

Sector Breakdown (% of the Fund's

Net Assets) as of April 30, 2011

Consumer Staples					25.7
Energy					16.8
Industrials					13.5
Health Care					11.1
Consumer Discretionary					7.2
Information Technology					6.3
Financials					6.0
Telecommunication Services					5.8
Materials					4.1
Utilities					3.5
Other assets less liabilities					0.0

Style Allocation (% of the Fund's

Total Investments) as of April 30, 2011

Large-Cap Value					44.3
Large-Cap Growth					40.7
Mid-Cap Value					6.4
Mid-Cap Growth					5.9
Small-Cap Value					2.0
Small-Cap Growth					0.7

Top Ten Fund Holdings (% of the Fund's

Net Assets) as of April 30, 2011

*Security*
Wal-Mart Stores, Inc.					5.1
Johnson & Johnson					5.1
AT&T, Inc.					5.0
International Business Machines Corp.					5.0
Procter & Gamble Co. (The)					4.8
Exxon Mobil Corp.					4.8
Chevron Corp.					4.8
Coca-Cola Co. (The)					4.6
ConocoPhillips					3.4
PepsiCo, Inc.					3.3
Total					45.9

Manager's Analysis (Continued)

PowerShares Dividend Achievers^TM Portfolio (ticker: PFM)

Growth of a $10,000 Investment Since Inception^†

Fund Performance History (%)										As of April 30, 2011
	Avg Ann^††									Fund Inception
	1 Year			3 Year			5 Year			Avg Ann^††			Cumulative
Index
Broad Dividend Achievers^TM Index		18.49	%		0.64	%		2.01	%		2.99	%		18.03	%
S&P 500^® Index		17.24	%		1.74	%		2.95	%		4.12	%		25.71	%
Russell 3000^® Value Index		15.17	%		0.39	%		1.47	%		3.31	%		20.29	%
Fund
Net Asset Value ("NAV") Return		18.39	%		0.55	%		1.77	%		2.71	%		16.21	%
Share Price Return		18.39	%		0.55	%		1.76	%		2.71	%		16.21	%

Fund Inception: September 15, 2005

Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2012. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.64%. In the Financial Highlights section of this Shareholder Report, the Fund's net total operating expense ratio was determined to be 0.60%, while the Fund's gross total expense ratio was determined to be 0.61%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.

The S&P 500^® Index and Russell 3000^® Value Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 500 and 1,957 common stocks, respectively.

^† Fund and underlying Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on the closest month-end to the Fund's inception date.

^†† Average annualized.

Manager's Analysis

PowerShares Financial Preferred Portfolio (ticker: PGF)

The PowerShares Financial Preferred Portfolio (the "Fund") seeks investment results that correspond (before fees and expenses) generally to the price and yield performance of the Wells Fargo^® Hybrid & Preferred Securities Financial Index (the "Index").

For the fiscal year ended April 30, 2011, the Fund returned 15.57%. Over this same year the Index returned 16.94% while the S&P Preferred Stock Index returned 12.59% and the S&P 500^® Index returned 17.24%. Because the Index does not comply with the tax diversification requirements to which the Fund must adhere, the Fund may not be able to invest in all of the stocks comprising the Index in proportion to their weightings in the Index at all times, which contributed to the difference between the Fund and the Index performance, beyond regular Fund expenses, can be attributed to the Fund's sampling methodology.

Industry Breakdown (% of the Fund's

Net Assets) as of April 30, 2011

Banks					66.6
Insurance					27.0
Diversified Financial Services					6.3
Other assets less liabilities					0.1

Style Allocation (% of the Fund's

Total Investments) as of April 30, 2011

Small-Cap Value					58.0
Mid-Cap Value					34.0
Large-Cap Value					8.0

Top Ten Fund Holdings (% of the Fund's

Net Assets) as of April 30, 2011

*Security*
HSBC Holdings PLC, 8.00%					9.8
Bank of America Corp., 8.20%					7.6
HSBC Holdings PLC, 8.13%					5.7
ING Groep NV, 8.50%					5.6
Bank of America Corp., 8.63%					4.9
Wells Fargo & Co., 8.00%					4.7
JPMorgan Chase & Co., 8.63%					4.4
Credit Suisse Guernsey, 7.90%					4.3
MetLife, Inc., 6.50%					4.3
ING Groep NV, 7.38%					4.1
Total					55.4

Manager's Analysis (Continued)

PowerShares Financial Preferred Portfolio (ticker: PGF)

Growth of a $10,000 Investment Since Inception^†

Fund Performance History (%)							As of April 30, 2011
	Avg Ann^††						Fund Inception
	1 Year			3 Year			Avg Ann^††			Cumulative
Index
Wells Fargo^® Hybrid & Preferred Securities Financial Index		16.94	%		5.36	%		2.44	%		11.23	%
S&P Preferred Stock Index		12.59	%		5.28	%		3.15	%		14.70	%
S&P 500^® Index		17.24	%		1.74	%		1.54	%		6.98	%
Fund
Net Asset Value ("NAV") Return		15.57	%		4.24	%		1.02	%		4.56	%
Share Price Return		15.97	%		4.12	%		0.87	%		3.87	%

Fund Inception: December 1, 2006

Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2012. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.65%. In the Financial Highlights section of this Shareholder Report, the Fund's net and gross total operating expense ratios were determined to be 0.66%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.

The S&P Preferred Stock Index and S&P 500^® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 224 preferred stocks and 500 common stocks, respectively.

^† Fund and underlying Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on the closest month-end to the Fund's inception date.

^†† Average annualized.

Manager's Analysis

PowerShares High Yield Equity Dividend Achievers^TM Portfolio (ticker: PEY)

The PowerShares High Yield Equity Dividend Achievers^TM Portfolio (the "Fund") seeks investment results that correspond (before fees and expenses) generally to the price and yield performance of the Mergent Dividend Achievers^TM 50 Index (the "Index").

For the fiscal year ended April 30, 2011, the Fund returned 11.91%. Over this same year, the Index returned 10.71%, while the Dow Jones U.S. Select Dividend Index returned 17.71%, the S&P Citigroup Large Cap Value Index returned 15.52% and the S&P 500^® Index returned 17.24%. The Fund benefited from positive performance of securities of companies in utilities and telecommunication services sectors. Fund performance was positive for securities of companies within each sector for the reporting period.

Industry Breakdown (% of the Fund's

Net Assets) as of April 30, 2011

Electric					20.3
Gas					13.5
Insurance					9.9
Banks					8.0
Telecommunications					6.1
Agriculture					5.0
Savings & Loans					4.0
Household Products/Wares					3.6
Healthcare-Products					3.3
Office/Business Equipment					2.6
Pipelines					2.6
Miscellaneous Manufacturing					2.3
Water					2.0
Pharmaceuticals					1.9
Food					1.8
Chemicals					1.7
Commerical Services					1.6
Distribution/Wholesale					1.6
Iron/Steel					1.5
Oil & Gas					1.5
Packaging & Containers					1.5
Environmental Control					1.4
Computers					1.4
Textiles					0.8
Other assets less liabilities					0.1

Top Ten Fund Holdings (% of the Fund's

Net Assets) as of April 30, 2011

*Security*
CenturyLink, Inc.					3.4
Mercury General Corp.					3.0
Altria Group, Inc.					2.8
AT&T, Inc.					2.7
PPL Corp.					2.7
Pitney Bowes, Inc.					2.6
Enterprise Products Partners LP					2.6
Old Republic International Corp.					2.6
Vectren Corp.					2.5
People's United Financial, Inc.					2.5
Total					27.4

Style Allocation (% of the Fund's

Total Investments) as of April 30, 2011

Small-Cap Value					35.2
Mid-Cap Value					26.5
Large-Cap Value					24.7
Mid-Cap Growth					8.5
Large-Cap Growth					3.4
Small-Cap Growth					1.7

Manager's Analysis (Continued)

PowerShares High Yield Equity Dividend Achievers^TM Portfolio (ticker: PEY)

Growth of a $10,000 Investment Since Inception^†

Fund Performance History (%)										As of April 30, 2011
	Avg Ann^††									Fund Inception
	1 Year			3 Year			5 Year			Avg Ann^††			Cumulative
Index
Mergent Dividend Achievers^TM 50 Index		10.71	%		-3.80	%		-6.54	%		-4.34	%		-24.66	%
Dow Jones U.S. Select Dividend Index		17.71	%		1.82	%		1.18	%		2.57	%		17.71	%
S&P Citigroup Large Cap Value Index		15.52	%		-0.58	%		1.00	%		3.53	%		24.97	%
S&P 500^® Index		17.24	%		1.74	%		2.95	%		4.48	%		32.50	%
Fund
Net Asset Value ("NAV") Return		11.91	%		-2.59	%		-5.32	%		-3.26	%		-19.08	%
Share Price Return		11.91	%		-2.59	%		-5.30	%		-3.25	%		-19.03	%

Fund Inception: December 9, 2004

Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2012. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.65%. In the Financial Highlights section of this Shareholder Report, the Fund's net total operating expense ratio was determined to be 0.60%, while the Fund's gross total expense ratio was determined to be 0.62%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.

The Dow Jones U.S. Select Dividend Index, S&P Citigroup Large Cap Value Index and S&P 500^® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 100, 1,086 and 500 common stocks, respectively.

^† Fund and underlying Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on the closest month-end to the Fund's inception date.

^†† Average annualized.

Manager's Analysis

PowerShares International Dividend Achievers^TM Portfolio (ticker: PID)

The PowerShares International Dividend Achievers^TM Portfolio (the "Fund") seeks investment results that correspond (before fees and expenses) generally to the price and yield performance of the International Dividend Achievers^TM Index (the "Index").

For the fiscal year ended April 30, 2011, the Fund returned 21.95%. Over this same year, the Index returned 21.32%, while the Dow Jones EPAC Select Dividend Index returned 27.01%, the MSCI EAFE^® Value Index returned 16.86% and the S&P 500^® Index returned 17.24%. The Fund benefited from positive performance of securities of companies in energy, telecommunication services and consumer staples sectors. Fund performance was positive for securities of companies within each sector. The Fund benefited from positive performance of securities of companies in Canada and the United Kingdom.

Sector Breakdown (% of the Fund's

Net Assets) as of April 30, 2011

Telecommunication Services	24.7
Energy	17.5
Health Care	12.1
Consumer Staples	12.0
Financials	8.4
Consumer Discretionary	7.5
Utilities	5.9
Information Technology	4.7
Industrials	3.8
Materials	3.6
Liabilities in excess of other assets	(0.2	)

Style Allocation (% of the Fund's

Total Investments) as of April 30, 2011

Large-Cap Value					54.2
Large-Cap Growth					27.7
Mid-Cap Value					12.9
Mid-Cap Growth					2.6
Small-Cap Growth					1.5
Small-Cap Value					1.1

Top Ten Fund Holdings (% of the Fund's

Net Assets) as of April 30, 2011

*Security*
Partner Communications Co. Ltd. ADR					5.0
Philippine Long Distance Telephone Co. ADR					4.0
Telefonica SA ADR					3.6
National Grid PLC ADR					3.3
Teekay LNG Partners LP					3.3
GlaxoSmithKline PLC ADR					3.1
AstraZeneca PLC ADR					3.0
Vodafone Group PLC ADR					2.6
British American Tobacco PLC ADR					2.5
Telefonos de Mexico SAB de CV, Series L ADR					2.5
Total					32.9

Manager's Analysis (Continued)

PowerShares International Dividend Achievers^TM Portfolio (ticker: PID)

Growth of a $10,000 Investment Since Inception^†

Fund Performance History (%)										As of April 30, 2011
	Avg Ann^††									Fund Inception
	1 Year			3 Year			5 Year			Avg Ann^††			Cumulative
Index
International Dividend Achievers^TM Index		21.32	%		-2.03	%		2.87	%		5.04	%		31.84	%
Dow Jones EPAC Select Dividend Index		27.01	%		1.24	%		5.86	%		8.63	%		59.87	%
MSCI EAFE^® Value Index		16.86	%		-3.60	%		0.55	%		4.56	%		28.76	%
S&P 500^® Index		17.24	%		1.74	%		2.95	%		4.12	%		25.71	%
Fund
Net Asset Value ("NAV") Return		21.95	%		-1.62	%		3.21	%		5.35	%		34.07	%
Share Price Return		22.23	%		-1.50	%		3.25	%		5.40	%		34.38	%

Fund Inception: September 15, 2005

Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2012. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.57%. In the Financial Highlights section of this Shareholder Report, the Fund's net and gross total operating expense ratios were determined to be 0.58%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.

The Dow Jones EPAC Select Dividend Index, MSCI EAFE^® Value Index and S&P 500^® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 100, 300 and 500 common stocks, respectively.

^† Fund and underlying Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on the closest month-end to the Fund's inception date.

^†† Average annualized.

Frequency Distribution of Discounts & Premiums

Since Inception through April 30, 2011

					Closing Price Above NAV (bps)
Ticker	Fund Name	Inception	Trading Days		0-24		25-49		50-99		100-149		150-199		200+
PKW	PowerShares Buyback Achievers^(TM) Portfolio	12/20/06		1097		451		35		8		1		2		1
PFM	PowerShares Dividend Achievers^(TM) Portfolio	09/15/05		1416		711		66		15		3		0		3
PGF	PowerShares Financial Preferred Portfolio	12/01/06		1110		450		199		88		29		24		68
PEY	PowerShares High Yield Equity Dividend Achievers^(TM) Portfolio	12/09/04		1609		610		54		8		6		0		1
PID	PowerShares International Dividend Achievers^(TM) Portfolio	09/15/05		1416		699		63		17		4		2		1

	Closing Price Below NAV (bps)
Ticker	-0-24		-25-49		-50-99		-100-149		-150-199		-200+
PKW		585		11		3		0		0		0
PFM		604		11		2		1		0		0
PGF		211		21		13		3		2		2
PEY		822		91		14		1		1		1
PID		506		74		38		7		4		1

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 April 30, 2011.

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 November 1, 2010		Ending Account Value April 30, 2011		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During the Six-Month Period⁽¹⁾
PowerShares Buyback Achievers^TM Portfolio Actual	$	1,000.00	$	1,185.67		0.70	%	$	3.79
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.32		0.70	%	$	3.51
PowerShares Dividend Achievers^TM Portfolio Actual	$	1,000.00	$	1,145.10		0.60	%	$	3.19
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.82		0.60	%	$	3.01
PowerShares Financial Preferred Portfolio Actual	$	1,000.00	$	1,049.06		0.67	%	$	3.40
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.47		0.67	%	$	3.36
PowerShares High Yield Equity Dividend Achievers^TM Portfolio Actual	$	1,000.00	$	1,092.81		0.60	%	$	3.11
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.82		0.60	%	$	3.01

Fees and Expenses (Continued)

	Beginning Account Value November 1, 2010		Ending Account Value April 30, 2011		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During the Six-Month Period⁽¹⁾
PowerShares International Dividend Achievers^TM Portfolio Actual	$	1,000.00	$	1,129.98		0.59	%	$	3.12
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.87		0.59	%	$	2.96

(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 April 30, 2011. Expenses are calculated by multiplying the Fund's annualized expense ratio by the average account value for the period; then multiplying the result by 181 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.

Schedule of Investments

PowerShares Buyback Achievers^TM Portfolio

April 30, 2011

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—23.3%
	2,775	Advance Auto Parts, Inc.	$	181,652
	2,925	Aeropostale, Inc.*		74,675
	6,982	American Eagle Outfitters, Inc.		108,640
	360	America's Car-Mart, Inc.*		8,813
	5,484	AutoNation, Inc.*		185,962
	1,503	AutoZone, Inc.*		424,417
	2,676	Big Lots, Inc.*		110,010
	286	Blyth, Inc.		13,482
	3,263	Brinker International, Inc.		78,606
	2,703	Career Education Corp.*		58,952
	717	CEC Entertainment, Inc.		27,124
	907	Children's Place Retail Stores, Inc. (The)*		48,225
	10,300	Coach, Inc.		616,043
	1,750	Dillard's, Inc., Class A		84,035
	27,610	DIRECTV, Class A*		1,341,570
	4,236	Dollar Tree, Inc.*		243,570
	4,265	Family Dollar Stores, Inc.		231,206
	5,044	GameStop Corp., Class A*		129,530
	19,992	Gap, Inc. (The)		464,614
	11,059	H&R Block, Inc.		191,210
	968	ITT Educational Services, Inc.*		69,435
	1,792	Jack in the Box, Inc.*		37,005
	4,165	Liberty Global, Inc., Class A*		193,672
	773	Lincoln Educational Services Corp.		12,909
	46,075	Lowe's Cos., Inc.		1,209,469
	967	Nutrisystem, Inc.		14,544
	205	NVR, Inc.*		151,563
	923	Papa John's International, Inc.*		27,745
	347	Pre-Paid Legal Services, Inc.*		22,885
	3,726	RadioShack Corp.		58,908
	24,060	Target Corp.		1,181,346
	2,401	Tempur-Pedic International, Inc.*		150,735
	1,427	Timberland Co. (The), Class A*		64,486
	38,102	Time Warner, Inc.		1,442,542
	13,654	TJX Cos., Inc. (The)		732,127
	235	Washington Post Co. (The), Class B		102,436
	14,650	Wendy's/Arby's Group, Inc., Class A		70,613
				10,164,756
		Consumer Staples—11.9%
	322	Boston Beer Co., Inc., Class A*		30,352
	1,313	Casey's General Stores, Inc.		51,246
	1,457	Central Garden & Pet Co., Class A*		14,599
	7,596	Dr Pepper Snapple Group, Inc.		297,763
	4,872	Lorillard, Inc.		518,868
	12,820	Safeway, Inc.		311,654
	21,329	Sara Lee Corp.		409,517
	32,155	Walgreen Co.		1,373,662
	39,968	Wal-Mart Stores, Inc.		2,197,441
				5,205,102

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
		Financials—8.0%
	701	Abington Bancorp, Inc.	$	8,496
	3,624	American Financial Group, Inc.		129,630
	1,550	Arch Capital Group Ltd.*		161,200
	2,083	Ashford Hospitality Trust, Inc. REIT		25,975
	2,480	Aspen Insurance Holdings Ltd. (Bermuda)		70,854
	3,469	Assurant, Inc.		137,719
	10,152	Chubb Corp. (The)		661,809
	1,347	Employers Holdings, Inc.		27,155
	1,411	Endurance Specialty Holdings Ltd. (Bermuda)		62,564
	2,230	Everest Re Group Ltd.		203,198
	293	FPIC Insurance Group, Inc.*		10,817
	1,602	Hanover Insurance Group, Inc. (The)		67,636
	443	Infinity Property & Casualty Corp.		26,181
	3,263	iStar Financial, Inc. REIT*		31,390
	1,396	LaBranche & Co., Inc.*		5,626
	5,355	Legg Mason, Inc.		198,938
	1,815	Meadowbrook Insurance Group, Inc.		18,586
	2,175	Montpelier Re Holdings Ltd. (Bermuda)		39,346
	6,200	NASDAQ OMX Group, Inc. (The)*		168,020
	1,312	Platinum Underwriters Holdings Ltd. (Bermuda)		49,607
	1,201	ProAssurance Corp.*		79,746
	1,820	RenaissanceRe Holdings Ltd. (Bermuda)		127,910
	1,649	StanCorp Financial Group, Inc.		71,072
	14,750	Travelers Cos., Inc. (The)		933,380
	5,021	W.R. Berkley Corp.		163,735
				3,480,590
		Health Care—26.9%
	13,164	Aetna, Inc.		544,726
	31,864	Amgen, Inc.*		1,811,468
	8,641	Biogen Idec, Inc.*		841,201
	59,328	Bristol-Myers Squibb Co.		1,667,117
	1,803	Charles River Laboratories International, Inc.*		76,069
	9,863	Forest Laboratories, Inc.*		327,057
	27,648	Gilead Sciences, Inc.*		1,073,848
	3,169	Health Net, Inc.*		105,528
	485	ICU Medical, Inc.*		21,878
	291	Kensey Nash Corp.*		7,196
	1,053	Maxygen, Inc.		5,434
	8,900	McKesson Corp.		738,789
	13,950	Medco Health Solutions, Inc.*		827,654
	1,434	Nabi Biopharmaceuticals*		8,289
	1,923	PSS World Medical, Inc.*		55,306
	5,551	Quest Diagnostics, Inc.		312,965
	1,152	Quidel Corp.*		15,287
	502	SonoSite, Inc.*		17,419
	37,821	UnitedHealth Group, Inc.		1,861,928

See Notes to Financial Statements.

Schedule of Investments (Continued)

PowerShares Buyback Achievers^TM Portfolio

April 30, 2011

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	12,573	WellPoint, Inc.	$	965,481
	6,665	Zimmer Holdings, Inc.*		434,891
				11,719,531
		Industrials—6.0%
	1,704	CBIZ, Inc.*		12,490
	5,067	Cintas Corp.		157,330
	1,256	Dycom Industries, Inc.*		18,664
	1,458	FTI Consulting, Inc.*		58,174
	5,465	KBR, Inc.		209,692
	12,132	Lockheed Martin Corp.		961,461
	10,144	Northrop Grumman Corp.		645,260
	1,723	Ryder System, Inc.		92,181
	1,091	Toro Co. (The)		74,090
	1,114	Tredegar Corp.		24,374
	2,443	W.W. Grainger, Inc.		370,359
				2,624,075
		Information Technology—22.9%
	6,940	Amdocs Ltd. (Guernsey)*		213,405
	2,115	Benchmark Electronics, Inc.*		35,743
	2,403	Brightpoint, Inc.*		24,318
	4,347	Broadridge Financial Solutions, Inc.		101,024
	7,734	Compuware Corp.*		87,626
	1,645	DST Systems, Inc.		81,115
	1,633	Electronics for Imaging, Inc.*		29,329
	1,403	Fair Isaac Corp.		41,922
	10,774	Fidelity National Information Services, Inc.		356,619
	2,203	Global Cash Access Holdings, Inc.*		7,270
	52,999	Hewlett-Packard Co.		2,139,570
	2,902	IAC/InterActiveCorp.*		104,791
	5,098	Integrated Device Technology, Inc.*		41,472
	12,767	International Business Machines Corp.		2,177,795
	1,120	LoopNet, Inc.*		20,810
	21,824	LSI Corp.*		159,970
	263	MicroStrategy, Inc., Class A*		37,162
	536	MTS Systems Corp.		23,729
	833	Multi-Fineline Electronix, Inc.*		22,183
	3,153	Novellus Systems, Inc.*		101,211
	699	Oplink Communications, Inc.*		13,840
	3,794	QLogic Corp.*		68,216
	12,452	SAIC, Inc.*		216,665
	16,286	Seagate Technology PLC (Ireland)		286,959
	501	Stamps.com, Inc.		6,774
	1,617	Tech Data Corp.*		85,911
	1,979	TeleTech Holdings, Inc.*		39,323
	40,922	Texas Instruments, Inc.		1,453,959
	1,116	Tyler Technologies, Inc.*		27,666
	2,826	ValueClick, Inc.*		47,335
	5,969	VeriSign, Inc.		220,614
	5,665	Vishay Intertechnology, Inc.*		108,088
	22,599	Western Union Co. (The)		480,229

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	8,981	Xilinx, Inc.	$	313,078
	46,028	Yahoo!, Inc.*		816,997
				9,992,718
		Materials—0.9%
	5,967	Ball Corp.		222,629
	645	Kaiser Aluminum Corp.		32,321
	473	NewMarket Corp.		87,183
	2,626	Worthington Industries, Inc.		56,643
				398,776
		Telecommunication Services—0.0%
	1,471	General Communication, Inc., Class A*		16,916
		Utilities—0.1%
	4,078	Dynegy, Inc., Class A*		25,855
		Total Common Stocks and Other Equity Interests (Cost $39,805,875)		43,628,319
		Money Market Fund—0.1%
	67,464	Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $67,464)		67,464
		Total Investments (Cost $39,873,339)—100.1%		43,695,783
		Liabilities in excess of other assets—(0.1%)		(59,147	)
		Net Assets—100.0%	$	43,636,636

Investment Abbreviations:

REIT—Real Estate Investment Trust

Notes to Schedule of Investments:

* Non-income producing security.

See Notes to Financial Statements.

Schedule of Investments

PowerShares Dividend Achievers^TM Portfolio

April 30, 2011

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—7.2%
	7,901	Family Dollar Stores, Inc.	$	428,313
	10,183	Genuine Parts Co.		546,827
	3,310	John Wiley & Sons, Inc., Class A		168,578
	9,421	Leggett & Platt, Inc.		247,678
	85,150	Lowe's Cos., Inc.		2,235,188
	1,912	Matthews International Corp., Class A		76,748
	67,025	McDonald's Corp.		5,248,728
	19,667	McGraw-Hill Cos., Inc. (The)		795,923
	2,376	Meredith Corp.		79,406
	2,199	Polaris Industries, Inc.		231,841
	7,590	Ross Stores, Inc.		559,307
	10,800	Stanley Black & Decker, Inc.		784,620
	44,764	Target Corp.		2,197,912
	25,167	TJX Cos., Inc. (The)		1,349,455
	7,021	VF Corp.		706,032
				15,656,556
		Consumer Staples—25.7%
	135,203	Altria Group, Inc.		3,628,849
	41,162	Archer-Daniels-Midland Co.		1,523,817
	28,195	Avon Products, Inc.		828,369
	5,725	Brown-Forman Corp., Class B		411,398
	2,450	Casey's General Stores, Inc.		95,623
	4,615	Church & Dwight Co., Inc.		380,645
	8,889	Clorox Co. (The)		619,208
	148,239	Coca-Cola Co. (The)		10,000,203
	31,678	Colgate-Palmolive Co.		2,672,039
	17,247	Hormel Foods Corp.		507,234
	7,494	J.M. Smucker Co. (The)		562,575
	26,033	Kimberly-Clark Corp.		1,719,740
	1,783	Lancaster Colony Corp.		108,959
	7,752	McCormick & Co., Inc.		380,778
	103,371	PepsiCo, Inc.		7,121,228
	162,012	Procter & Gamble Co. (The)		10,514,579
	37,635	Sysco Corp.		1,088,028
	2,329	Tootsie Roll Industries, Inc.		69,032
	1,515	Universal Corp.		65,721
	4,819	Vector Group Ltd.		88,477
	59,126	Walgreen Co.		2,525,863
	201,432	Wal-Mart Stores, Inc.		11,074,731
				55,987,096
		Energy—16.8%
	5,500	Buckeye Partners LP		357,830
	1,496	CARBO Ceramics, Inc.		240,766
	95,676	Chevron Corp.		10,470,782
	94,027	ConocoPhillips		7,421,551
	54,490	Enterprise Products Partners LP		2,357,782
	17,322	EOG Resources, Inc.		1,955,827
	119,203	Exxon Mobil Corp.		10,489,864
	6,867	Helmerich & Payne, Inc.		455,557

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	14,146	Kinder Morgan Energy Partners LP	$	1,093,769
	12,492	Murphy Oil Corp.		967,880
	9,564	Plains All American Pipeline LP		614,391
	2,986	TC Pipelines LP		144,463
				36,570,462
		Financials—6.0%
	30,369	Aflac, Inc.		1,706,434
	992	BancFirst Corp.		39,948
	1,104	Bank of the Ozarks, Inc.		49,161
	9,191	Brown & Brown, Inc.		237,587
	18,963	Chubb Corp. (The)		1,236,198
	10,528	Cincinnati Financial Corp.		333,527
	5,622	Commerce Bancshares, Inc.		239,272
	2,157	Community Bank System, Inc.		53,968
	994	Community Trust Bancorp, Inc.		28,130
	4,331	Corporate Office Properties Trust REIT		152,495
	3,955	Cullen/Frost Bankers, Inc.		234,294
	7,667	Eaton Vance Corp.		258,915
	3,215	Erie Indemnity Co., Class A		232,862
	2,080	Essex Property Trust, Inc. REIT		281,798
	4,017	Federal Realty Investment Trust REIT		351,729
	839	First Financial Corp.		26,982
	14,407	Franklin Resources, Inc.		1,860,232
	2,169	Getty Realty Corp. REIT		55,114
	1,735	Harleysville Group, Inc.		55,659
	7,412	HCC Insurance Holdings, Inc.		241,187
	25,931	HCP, Inc. REIT		1,027,386
	34,018	Hudson City Bancorp, Inc.		324,192
	5,171	Investors Real Estate Trust REIT		48,659
	3,541	Mercury General Corp.		140,719
	5,462	National Retail Properties, Inc. REIT		143,869
	16,743	Old Republic International Corp.		212,134
	23,226	People's United Financial, Inc.		317,964
	3,021	Prosperity Bancshares, Inc.		138,513
	8,119	Realty Income Corp. REIT		288,630
	1,358	RLI Corp.		80,448
	11,952	SEI Investments Co.		266,888
	1,075	Southside Bancshares, Inc.		23,381
	2,954	StanCorp Financial Group, Inc.		127,317
	16,775	T. Rowe Price Group, Inc.		1,077,794
	5,250	Tanger Factory Outlet Centers, Inc. REIT		145,058
	4,035	Transatlantic Holdings, Inc.		198,885
	2,616	UMB Financial Corp.		110,160
	2,816	United Bankshares, Inc.		73,667
	817	Universal Health Realty Income Trust REIT		35,221
	1,339	Urstadt Biddle Properties, Inc., Class A REIT		26,352
	2,552	W.P. Carey & Co. LLC		91,540
	4,255	Washington REIT		137,862

See Notes to Financial Statements.

Schedule of Investments (Continued)

PowerShares Dividend Achievers^TM Portfolio

April 30, 2011

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	460	Wesco Financial Corp.	$	180,320
	1,874	Westamerica Bancorp		95,180
				12,987,631
		Health Care—11.1%
	99,956	Abbott Laboratories		5,201,710
	4,602	Beckman Coulter, Inc.		381,276
	14,281	Becton, Dickinson and Co.		1,227,309
	5,584	C.R. Bard, Inc.		596,092
	22,589	Cardinal Health, Inc.		986,914
	167,688	Johnson & Johnson		11,020,455
	69,067	Medtronic, Inc.		2,883,547
	2,646	Meridian Bioscience, Inc.		65,383
	4,116	Owens & Minor, Inc.		141,796
	25,117	Stryker Corp.		1,481,903
	2,161	West Pharmaceutical Services, Inc.		102,086
				24,088,471
		Industrials—13.5%
	45,974	3M Co.		4,469,133
	2,968	A.O. Smith Corp.		130,503
	3,424	ABM Industries, Inc.		83,272
	972	Badger Meter, Inc.		36,848
	3,175	Brady Corp., Class A		119,729
	10,528	C.H. Robinson Worldwide, Inc.		844,135
	3,988	Carlisle Cos., Inc.		197,565
	41,640	Caterpillar, Inc.		4,805,672
	9,384	Cintas Corp.		291,373
	3,256	CLARCOR, Inc.		147,139
	4,966	Donaldson Co., Inc.		304,068
	12,051	Dover Corp.		819,950
	48,705	Emerson Electric Co.		2,959,316
	13,695	Expeditors International of Washington, Inc.		743,228
	9,520	Fastenal Co.		638,697
	1,507	Franklin Electric Co., Inc.		67,981
	24,115	General Dynamics Corp.		1,756,054
	1,089	Gorman-Rupp Co. (The)		44,050
	3,887	Graco, Inc.		194,467
	5,207	Harsco Corp.		185,369
	32,207	Illinois Tool Works, Inc.		1,881,211
	1,569	McGrath Rentcorp		44,544
	2,358	Mine Safety Appliances Co.		93,565
	439	NACCO Industries, Inc., Class A		46,196
	4,406	Nordson Corp.		251,010
	10,456	Parker Hannifin Corp.		986,210
	6,355	Pentair, Inc.		255,217
	13,166	Pitney Bowes, Inc.		323,357
	1,167	Raven Industries, Inc.		63,438
	6,158	Roper Industries, Inc.		532,605
	1,232	Tennant Co.		50,537
	59,498	United Technologies Corp.		5,329,831

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	1,260	Universal Forest Products, Inc.	$	40,685
	4,485	W.W. Grainger, Inc.		679,926
				29,416,881
		Information Technology—6.3%
	32,062	Automatic Data Processing, Inc.		1,742,570
	4,246	Diebold, Inc.		143,515
	2,982	FactSet Research Systems, Inc.		326,260
	64,117	International Business Machines Corp.		10,937,078
	5,565	Jack Henry & Associates, Inc.		189,043
	14,650	Linear Technology Corp.		509,820
				13,848,286
		Materials—4.1%
	13,881	Air Products & Chemicals, Inc.		1,325,913
	5,919	Albemarle Corp.		417,585
	4,334	AptarGroup, Inc.		227,318
	6,899	Bemis Co., Inc.		216,215
	14,987	Ecolab, Inc.		790,714
	3,192	H.B. Fuller Co.		69,745
	20,412	Nucor Corp.		958,548
	10,402	PPG Industries, Inc.		984,757
	19,609	Praxair, Inc.		2,086,790
	8,423	RPM International, Inc.		197,941
	6,927	Sherwin-Williams Co. (The)		570,023
	7,867	Sigma-Aldrich Corp.		555,253
	6,476	Sonoco Products Co.		223,811
	695	Stepan Co.		50,019
	6,198	Valspar Corp. (The)		243,643
				8,918,275
		Telecommunication Services—5.8%
	351,901	AT&T, Inc.		10,951,159
	993	Atlantic Tele-Network, Inc.		36,473
	38,738	CenturyLink, Inc.		1,579,736
	1,510	Shenandoah Telecommunications Co.		28,418
	3,642	Telephone & Data Systems, Inc.		122,225
				12,718,011
		Utilities—3.5%
	1,203	American States Water Co.		41,997
	8,926	Aqua America, Inc.		201,281
	5,841	Atmos Energy Corp.		203,792
	2,545	Black Hills Corp.		88,439
	1,338	California Water Service Group		50,469
	18,876	Consolidated Edison, Inc.		983,817
	4,653	Energen Corp.		302,492
	12,194	MDU Resources Group, Inc.		291,315
	1,491	MGE Energy, Inc.		62,637
	1,007	Middlesex Water Co.		19,012
	5,319	National Fuel Gas Co.		389,883
	2,673	New Jersey Resources Corp.		117,024
	27,254	NextEra Energy, Inc.		1,541,759

See Notes to Financial Statements.

Schedule of Investments (Continued)

PowerShares Dividend Achievers^TM Portfolio

April 30, 2011

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	11,412	Northeast Utilities	$	406,267
	1,721	Northwest Natural Gas Co.		79,579
	6,690	NSTAR		309,747
	4,637	Piedmont Natural Gas Co., Inc.		147,225
	36,499	PPL Corp.		1,001,168
	11,443	Questar Corp.		201,053
	8,269	SCANA Corp.		343,329
	1,181	SJW Corp.		27,446
	1,929	South Jersey Industries, Inc.		110,821
	2,284	Suburban Propane Partners LP		128,384
	7,176	UGI Corp.		238,961
	2,369	Unisource Energy Corp.		87,961
	5,278	Vectren Corp.		150,845
	3,291	WGL Holdings, Inc.		130,060
				7,656,763
		Total Investments (Cost $181,516,465)—100.0%		217,848,432
		Other assets less liabilities—0.0%		10,822
		Net Assets—100.0%	$	217,859,254

Investment Abbreviations:

REIT—Real Estate Investment Trust

See Notes to Financial Statements.

Schedule of Investments

PowerShares Financial Preferred Portfolio

April 30, 2011

Number of Shares			Value
		Preferred Stocks—99.9%
		Banks—66.6%
	1,414,604	Bank of America Corp., 6.20%, Series D	$	32,649,060
	1,920,517	Bank of America Corp., 7.25%, Series J		48,665,901
	5,333,282	Bank of America Corp., 8.20%, Series H		138,665,332
	3,301,363	Bank of America Corp., 8.63%, Series MER		88,872,692
	422,765	Barclays Bank PLC, 6.63%, Series 2 (United Kingdom)		10,442,296
	578,288	Barclays Bank PLC, 7.75%, Series 4 (United Kingdom)		15,035,488
	2,429,330	Barclays Bank PLC, 8.13%, Series 5 (United Kingdom)		64,620,178
	379,102	Deutsche Bank Capital Funding Trust IX, 6.63%		9,371,401
	1,236,930	Deutsche Bank Contingent Capital Trust III, 7.60%		33,050,770
	718,635	Deutsche Bank Contingent Capital Trust V, 8.05%		19,546,872
	1,898,835	Goldman Sachs Group, Inc. (The), 6.20%, Series B		47,432,898
	6,566,686	HSBC Holdings PLC, 8.00%, Series 2 (United Kingdom)		180,124,197
	3,826,044	HSBC Holdings PLC, 8.13% (United Kingdom)		104,910,127
	1,238,176	HSBC USA, Inc., 6.50%, Series H		30,954,400
	2,934,376	JPMorgan Chase & Co., 8.63%, Series J		81,106,153
	1,314,446	National Bank of Greece SA, 9.00%(Greece)		23,673,172
	1,475,675	Royal Bank of Scotland Group PLC, 5.75%, Series L (United Kingdom)		28,111,609
	381,354	Royal Bank of Scotland Group PLC, 6.35%, Series N (United Kingdom)*		6,871,999
	522,548	Royal Bank of Scotland Group PLC, 6.60%, Series S (United Kingdom)*		9,541,726
	327,150	Royal Bank of Scotland Group PLC, 6.75%, Series Q (United Kingdom)*		6,071,904
	2,030,479	Royal Bank of Scotland Group PLC, 7.25%, Series T (United Kingdom)*		40,731,409
	2,017,508	Santander Finance Preferred SA Unipersonal, 10.50%, Series 10 (Spain)		58,084,055
	993,996	U.S. Bancorp, 7.88%, Series D		27,583,389
	2,998,593	Wells Fargo & Co., 8.00%, Series J		86,629,352
	1,041,124	Zions Bancorp, 9.50%, Series C		27,995,824
				1,220,742,204
		Diversified Financial Services—6.3%
	2,909,858	Credit Suisse Guernsey, 7.90% (Switzerland)		79,497,321
	1,521,028	HSBC Finance Corp., 6.36%, Series B		36,200,466
				115,697,787

Number of Shares			Value
		Preferred Stocks (Continued)
		Insurance—27.0%
	1,060,253	Aegon NV, 6.38%(Netherlands)	$	24,661,485
	343,755	Aegon NV, 6.50%(Netherlands)		7,940,741
	492,134	Aegon NV, 6.88%(Netherlands)		11,830,901
	1,742,395	Aegon NV, 7.25%(Netherlands)		43,612,147
	442,567	Axis Capital Holdings Ltd., 7.25%, Series A		11,090,729
	865,638	ING Groep NV, 6.13%(Netherlands)		18,706,437
	1,709,530	ING Groep NV, 6.38%(Netherlands)		37,370,326
	3,094,940	ING Groep NV, 7.38%(Netherlands)		75,268,941
	3,923,540	ING Groep NV, 8.50%(Netherlands)		102,522,100
	3,059,586	MetLife, Inc., 6.50%, Series B		78,172,422
	560,409	PartnerRe Ltd., 6.75%, Series C		13,926,164
	460,801	Principal Financial Group, Inc., 6.52%, Series B		11,510,809
	665,894	Prudential PLC, 6.50%(United Kingdom)		16,654,009
	612,913	Prudential PLC, 6.75%(United Kingdom)		15,384,116
	486,659	RenaissanceRe Holdings Ltd., 6.08%, Series C		11,280,756
	594,657	RenaissanceRe Holdings Ltd., 6.60%, Series D		14,902,104
				494,834,187
		Total Investments (Cost $1,497,617,912)—99.9%		1,831,274,178
		Other assets less liabilities—0.1%		1,241,334
		Net Assets—100.0%	$	1,832,515,512

Notes to Schedule of Investments:

This Fund has holdings greater than 10% of net assets in the following countries:

United Kingdom					27.2	%
Netherlands					17.6	%

* Non-income producing security.

See Notes to Financial Statements.

Schedule of Investments

PowerShares High Yield Equity Dividend Achievers^TM Portfolio

April 30, 2011

Number of Shares			Value
		Common Stocks and Other Equity Interests—99.9%
		Agriculture—5.0%
	220,766	Altria Group, Inc.	$	5,925,359
	103,105	Universal Corp.		4,472,695
				10,398,054
		Banks—8.0%
	163,730	Community Bank System, Inc.		4,096,524
	156,999	Community Trust Bancorp, Inc.		4,443,072
	158,323	Southside Bancshares, Inc.		3,443,525
	177,748	United Bankshares, Inc.		4,649,888
				16,633,009
		Chemicals—1.7%
	150,960	RPM International, Inc.		3,547,560
		Commercial Services—1.6%
	120,932	McGrath Rentcorp		3,433,260
		Computers—1.4%
	85,068	Diebold, Inc.		2,875,298
		Distribution/Wholesale—1.6%
	63,517	Genuine Parts Co.		3,410,863
		Electric—20.3%
	128,903	Black Hills Corp.		4,479,379
	92,027	Consolidated Edison, Inc.		4,796,447
	119,354	MDU Resources Group, Inc.		2,851,367
	89,591	MGE Energy, Inc.		3,763,718
	70,941	NextEra Energy, Inc.		4,013,132
	90,607	Northeast Utilities		3,225,609
	80,798	NSTAR		3,740,947
	202,436	PPL Corp.		5,552,820
	122,557	SCANA Corp.		5,088,567
	127,130	Unisource Energy Corp.		4,720,337
				42,232,323
		Environmental Control—1.4%
	74,939	Mine Safety Appliances Co.		2,973,580
		Food—1.8%
	127,771	Sysco Corp.		3,693,860
		Gas—13.5%
	117,565	Atmos Energy Corp.		4,101,843
	78,161	New Jersey Resources Corp.		3,421,889
	82,459	Northwest Natural Gas Co.		3,812,904
	123,535	Piedmont Natural Gas Co., Inc.		3,922,236
	201,152	Questar Corp.		3,534,241
	182,321	Vectren Corp.		5,210,734
	103,654	WGL Holdings, Inc.		4,096,406
				28,100,253

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
		Healthcare-Products—3.3%
	56,049	Johnson & Johnson	$	3,683,540
	127,914	Meridian Bioscience, Inc.		3,160,755
				6,844,295
		Household Products/Wares—3.6%
	45,173	Clorox Co. (The)		3,146,751
	65,839	Kimberly-Clark Corp.		4,349,325
				7,496,076
		Insurance—9.9%
	149,539	Cincinnati Financial Corp.		4,737,396
	134,894	Harleysville Group, Inc.		4,327,399
	156,912	Mercury General Corp.		6,235,683
	423,573	Old Republic International Corp.		5,366,670
				20,667,148
		Iron/Steel—1.5%
	68,788	Nucor Corp.		3,230,284
		Miscellaneous Manufacturing—2.3%
	183,562	Leggett & Platt, Inc.		4,825,845
		Office/Business Equipment—2.6%
	221,452	Pitney Bowes, Inc.		5,438,861
		Oil & Gas—1.5%
	40,515	ConocoPhillips		3,197,849
		Packaging & Containers—1.5%
	91,904	Sonoco Products Co.		3,176,202
		Pharmaceuticals—1.9%
	75,203	Abbott Laboratories		3,913,564
		Pipelines—2.6%
	125,442	Enterprise Products Partners LP		5,427,875
		Savings & Loans—4.0%
	343,100	Hudson City Bancorp, Inc.		3,269,743
	372,432	People's United Financial, Inc.		5,098,594
				8,368,337
		Telecommunications—6.1%
	181,364	AT&T, Inc.		5,644,048
	174,703	CenturyLink, Inc.		7,124,388
				12,768,436
		Textiles—0.8%
	52,482	Cintas Corp.		1,629,566
		Water—2.0%
	216,045	Middlesex Water Co.		4,078,930
		Total Investments (Cost $190,586,563)—99.9%		208,361,328
		Other assets less liabilities—0.1%		109,203
		Net Assets—100.0%	$	208,470,531

See Notes to Financial Statements.

Schedule of Investments

PowerShares International Dividend Achievers^TM Portfolio

April 30, 2011

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.2%
		Australia—1.0%
	56,660	BHP Billiton Ltd. ADR	$	5,736,258
		Bahamas—3.3%
	478,918	Teekay LNG Partners LP		18,160,571
		Belgium—1.0%
	63,157	Delhaize Group SA ADR		5,422,660
		Bermuda—3.5%
	300,364	Alterra Capital Holdings Ltd.		6,602,001
	226,131	Axis Capital Holdings Ltd.		7,995,992
	65,873	RenaissanceRe Holdings Ltd.		4,629,554
				19,227,547
		Brazil—0.8%
	159,769	Cia de Bebidas DAS Americas ADR		4,201,925
		Canada—18.2%
	137,879	Cameco Corp.		4,064,673
	69,900	Canadian National Railway Co.		5,412,357
	47,245	Canadian Natural Resources Ltd.		2,218,625
	77,554	Canadian Pacific Railway Ltd.		5,137,177
	146,506	Enbridge, Inc.		9,497,984
	49,130	Imperial Oil Ltd.		2,597,012
	155,289	Ritchie Bros. Auctioneers, Inc.		4,855,887
	324,043	Rogers Communications, Inc., Class B		12,258,547
	637,410	Shaw Communications, Inc., Class B		13,487,596
	58,483	Suncor Energy, Inc.		2,692,557
	124,089	Talisman Energy, Inc.		2,990,545
	257,416	Telus Corp.		12,914,561
	234,350	Thomson Reuters Corp.		9,484,144
	286,541	TransCanada Corp.		12,304,070
				99,915,735
		Cayman Islands—1.5%
	832,697	Consolidated Water Co. Ltd.(~)		8,168,758
		Chile—1.1%
	103,607	Empresa Nacional de Electricidad SA ADR		5,841,363
		Denmark—0.6%
	25,208	Novo Nordisk A/S ADR		3,211,247
		France—1.8%
	247,311	Sanofi-Aventis SA ADR		9,773,731
		Hong Kong—3.2%
	245,938	China Mobile Ltd. ADR		11,335,282
	25,197	CNOOC Ltd. ADR		6,285,392
				17,620,674
		India—1.1%
	7,562	HDFC Bank Ltd. ADR		1,301,420
	77,677	Infosys Technologies Ltd. ADR		5,062,987
				6,364,407

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
		Ireland—1.9%
	87,820	Accenture PLC, Class A	$	5,017,157
	81,836	Cooper Industries PLC		5,397,084
				10,414,241
		Israel—5.7%
	1,405,522	Partner Communications Co. Ltd. ADR		27,224,961
	95,193	Teva Pharmaceutical Industries Ltd. ADR		4,353,176
				31,578,137
		Japan—2.6%
	216,467	Canon, Inc. ADR		10,210,749
	38,033	Kyocera Corp. ADR		4,180,207
				14,390,956
		Mexico—4.4%
	47,193	America Movil SAB de CV, Series L ADR		2,699,440
	96,425	Coca-Cola Femsa SAB de CV ADR		7,691,822
	737,445	Telefonos de Mexico SAB de CV, Series L ADR		13,804,970
				24,196,232
		Netherlands—1.7%
	280,305	Unilever NV		9,250,065
		Norway—1.9%
	367,049	Statoil ASA ADR		10,758,206
		Philippines—4.0%
	379,462	Philippine Long Distance Telephone Co. ADR		22,005,001
		Russia—1.1%
	84,201	LUKOIL OAO ADR		5,826,709
		Spain—3.6%
	740,103	Telefonica SA ADR		19,953,177
		Switzerland—4.6%
	154,673	Noble Corp.		6,652,486
	195,668	Novartis AG ADR		11,577,676
	103,018	Syngenta AG ADR*		7,287,493
				25,517,655
		United Kingdom—27.9%
	42,731	ARM Holdings PLC ADR		1,344,317
	336,143	AstraZeneca PLC ADR		16,750,006
	82,621	BHP Billiton PLC ADR		6,955,036
	158,210	British American Tobacco PLC ADR		13,954,122
	125,009	Diageo PLC ADR		10,171,982
	389,899	GlaxoSmithKline PLC ADR		17,022,990
	355,391	National Grid PLC ADR		18,242,220
	566,396	Pearson PLC ADR		10,789,844
	410,736	Prudential PLC ADR		10,613,418
	158,394	Royal Dutch Shell PLC, Class A ADR		12,272,367
	45,946	Smith & Nephew PLC ADR		2,546,327

See Notes to Financial Statements.

Schedule of Investments (Continued)

PowerShares International Dividend Achievers^TM Portfolio

April 30, 2011

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	345,112	Unilever PLC ADR	$	11,240,298
	482,545	Vodafone Group PLC ADR		14,051,711
	113,649	WPP PLC ADR		7,420,143
				153,374,781
		United States—3.7%
	94,534	ACE Ltd.		6,357,411
	51,799	Bunge Ltd.		3,907,717
	106,616	PartnerRe Ltd.		8,567,662
	14,826	Shire PLC ADR		1,381,931
				20,214,721
		Total Investments (Cost $486,562,283)—100.2%		551,124,757
		Liabilities in excess of other assets—(0.2%)		(842,440	)
		Net Assets—100.0%	$	550,282,317

Investment Abbreviations:

ADR—American Depositary Receipt

Notes to Schedule of Investments:

(~) Affiliated Investment. See Note 4.

* Non-income producing security.

See Notes to Financial Statements.

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Statements of Assets and Liabilities

April 30, 2011

	PowerShares Buyback Achievers^TM Portfolio			PowerShares Dividend Achievers^TMPortfolio			PowerShares Financial Preferred Portfolio			PowerShares High Yield Equity Dividend Achievers^TMPortfolio			PowerShares International Dividend Achievers^TMPortfolio
ASSETS:
Unaffiliated investments, at value	$	43,695,783		$	217,848,432		$	1,831,274,178		$	208,361,328		$	542,955,999
Affiliated investments, at value (Note 4)		—			—			—			—			8,168,758
Total investments, at value		43,695,783			217,848,432			1,831,274,178			208,361,328			551,124,757
Receivables:
Investments sold		946,676			3,222,479			2,288,106			11,733,837			58,807,175
Dividends		32,806			384,746			5,889,395			412,455			1,130,259
Expense waivers		8,539			6,683			19,061			6,159			321
Shares sold		—			2,293,218			—			8,610,600			19,379,510
Foreign tax reclaims		—			—			—			—			210,506
Total Assets		44,683,804			223,755,558			1,839,470,740			229,124,379			630,652,528
LIABILITIES:
Due to custodian		—			65,030			5,010,512			91,847			820,683
Payables:
Investments purchased		940,150			3,300,916			180,550			11,707,482			60,471,308
Shares repurchased		—			2,293,218			—			8,610,601			18,538,949
Accrued advisory fees		17,149			69,995			747,770			65,874			174,686
Accrued expenses		89,869			167,145			1,016,396			178,044			364,585
Total Liabilities		1,047,168			5,896,304			6,955,228			20,653,848			80,370,211
NET ASSETS	$	43,636,636		$	217,859,254		$	1,832,515,512		$	208,470,531		$	550,282,317
NET ASSETS CONSIST OF:
Shares of beneficial interest	$	64,857,245		$	202,261,374		$	1,541,666,553		$	334,682,177		$	705,382,351
Undistributed net investment income (loss)		62,686			606,451			(289,320	)		(8,300	)		2,252,829
Undistributed net realized gain (loss)		(25,105,739	)		(21,340,538	)		(42,517,987	)		(143,978,111	)		(221,915,337	)
Net unrealized appreciation		3,822,444			36,331,967			333,656,266			17,774,765			64,562,474
Net Assets	$	43,636,636		$	217,859,254		$	1,832,515,512		$	208,470,531		$	550,282,317
Shares outstanding (unlimited amount authorized, $0.01 par value)		1,600,000			14,250,000			100,350,000			23,000,000			32,650,000
Net asset value	$	27.27		$	15.29		$	18.26		$	9.06		$	16.85
Share price	$	27.27		$	15.29		$	18.28		$	9.06		$	16.89
Unaffiliated investments, at cost	$	39,873,339		$	181,516,465		$	1,497,617,912		$	190,586,563		$	477,228,802
Affiliated investments, at cost	$	—		$	—		$	—		$	—		$	9,333,481
Total investments, at cost	$	39,873,339		$	181,516,465		$	1,497,617,912		$	190,586,563		$	486,562,283

See Notes to Financial Statements.

Statements of Operations

Year Ended April 30, 2011

	PowerShares Buyback Achievers^TM Portfolio			PowerShares Dividend Achievers^TMPortfolio			PowerShares Financial Preferred Portfolio			PowerShares High Yield Equity Dividend Achievers^TMPortfolio			PowerShares International Dividend Achievers^TMPortfolio
INVESTMENT INCOME:
Unaffiliated dividend income	$	431,621		$	5,163,895		$	129,452,940		$	7,528,878		$	18,148,112
Affiliated dividend income		—			—			—			—			167,005
Foreign withholding tax		—			—			—			—			(1,501,617	)
Total Income		431,621			5,163,895			129,452,940			7,528,878			16,813,500
EXPENSES:
Advisory fees		181,136			712,707			8,737,380			652,458			1,775,241
Accounting & administration fees		68,240			68,240			427,715			68,240			108,267
Sub-licensing		36,227			178,172			1,747,474			163,111			443,809
Professional fees		32,327			40,468			143,729			39,136			56,707
Custodian & transfer agent fees		18,370			42,311			187,368			31,116			72,713
Trustees		6,019			10,170			60,018			9,865			18,359
Recapture (See Note 3)		—			62			31,250			—			3,295
Other expenses		21,675			38,834			272,154			55,307			116,193
Total Expenses		363,994			1,090,964			11,607,088			1,019,233			2,594,584
Less: Waivers		(110,403	)		(21,912	)		(42,557	)		(40,549	)		(3,588	)
Net Expenses		253,591			1,069,052			11,564,531			978,684			2,590,996
Net Investment Income		178,030			4,094,843			117,888,409			6,550,194			14,222,504
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) from:
Investments		(743,177	)		(1,486,230	)		18,378,691			865,130			2,385,105
In-kind redemptions		7,514,114			10,237,679			57,774,585			11,205,389			41,285,821
Foreign currencies		—			—			—			—			221
Net realized gain		6,770,937			8,751,449			76,153,276			12,070,519			43,671,147
Net change in unrealized appreciation on investments		448,673			22,646,874			55,999,303			3,341,741			31,849,135
Net realized and unrealized gain		7,219,610			31,398,323			132,152,579			15,412,260			75,520,282
Net increase in net assets resulting from operations	$	7,397,640		$	35,493,166		$	250,040,988		$	21,962,454		$	89,742,786

See Notes to Financial Statements.

Statements of Changes in Net Assets

	PowerShares Buyback Achievers^TM Portfolio						PowerShares Dividend Achievers^TMPortfolio						PowerShares Financial Preferred Portfolio
	Year Ended April 30, 2011			Year Ended April 30, 2010			Year Ended April 30, 2011			Year Ended April 30, 2010			Year Ended April 30, 2011			Year Ended April 30, 2010
OPERATIONS:
Net investment income	$	178,030		$	330,119		$	4,094,843		$	2,379,666		$	117,888,409		$	113,420,686
Net realized gain (loss)		6,770,937			4,628,427			8,751,449			(3,080,940	)		76,153,276			66,377,711
Net change in unrealized appreciation		448,673			6,305,908			22,646,874			28,168,674			55,999,303			350,585,680
Net increase in net assets resulting from operations		7,397,640			11,264,454			35,493,166			27,467,400			250,040,988			530,384,077
Undistributed net investment income (loss) included in the price of units issued and redeemed		4,185			6,239			435,134			92,598			279,389			(1,698,335	)
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income		(111,858	)		(467,441	)		(4,080,812	)		(2,653,314	)		(120,705,130	)		(112,572,843	)
Return of capital		—			—			—			—			(4,382,771	)		(4,876,161	)
Total distributions to shareholders		(111,858	)		(467,441	)		(4,080,812	)		(2,653,314	)		(125,087,901	)		(117,449,004	)
SHAREHOLDER TRANSACTIONS:
Proceeds from shares sold		31,415,572			26,715,685			109,729,654			54,083,996			144,693,621			658,426,601
Value of shares repurchased		(33,083,924	)		(26,949,276	)		(56,663,024	)		(30,968,874	)		(151,955,562	)		(130,181,507	)
Net income (loss) equalization		(4,185	)		(6,239	)		(435,134	)		(92,598	)		(279,389	)		1,698,335
Net increase (decrease) in net assets resulting from shares transactions		(1,672,537	)		(239,830	)		52,631,496			23,022,524			(7,541,330	)		529,943,429
Increase in Net Assets		5,617,430			10,563,422			84,478,984			47,929,208			117,691,146			941,180,167
NET ASSETS:
Beginning of year		38,019,206			27,455,784			133,380,270			85,451,062			1,714,824,366			773,644,199
End of year	$	43,636,636		$	38,019,206		$	217,859,254		$	133,380,270		$	1,832,515,512		$	1,714,824,366
Undistributed net investment income (loss) at end of year	$	62,686		$	(3,486	)	$	606,451		$	558,686		$	(289,320	)	$	(3,284,219	)
CHANGES IN SHARES OUTSTANDING:
Shares sold		1,250,000			1,350,000			8,500,000			4,450,000			8,300,000			41,950,000
Shares repurchased		(1,350,000	)		(1,350,000	)		(4,350,000	)		(2,650,000	)		(9,000,000	)		(8,700,000	)
Shares outstanding, beginning of year		1,700,000			1,700,000			10,100,000			8,300,000			101,050,000			67,800,000
Shares outstanding, end of year		1,600,000			1,700,000			14,250,000			10,100,000			100,350,000			101,050,000

See Notes to Financial Statements.

	PowerShares High Yield Equity Dividend Achievers^TMPortfolio						PowerShares International Dividend Achievers^TMPortfolio
	Year Ended April 30, 2011			Year Ended April 30, 2010			Year Ended April 30, 2011			Year Ended April 30, 2010
OPERATIONS:
Net investment income	$	6,550,194		$	4,674,969		$	14,222,504		$	9,615,929
Net realized gain (loss)		12,070,519			7,437,890			43,671,147			(10,160,962	)
Net change in unrealized appreciation		3,341,741			26,851,833			31,849,135			122,485,105
Net increase in net assets resulting from operations		21,962,454			38,964,692			89,742,786			121,940,072
Undistributed net investment income (loss) included in the price of units issued and redeemed		65,191			1,096			256,262			446,981
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income		(6,552,543	)		(4,674,671	)		(13,859,836	)		(12,740,323	)
Return of capital		(277,932	)		(344,802	)		—			—
Total distributions to shareholders		(6,830,475	)		(5,019,473	)		(13,859,836	)		(12,740,323	)
SHAREHOLDER TRANSACTIONS:
Proceeds from shares sold		148,651,386			64,896,968			193,763,089			130,274,190
Value of shares repurchased		(82,736,906	)		(58,264,459	)		(147,146,410	)		(68,274,834	)
Net income (loss) equalization		(65,191	)		(1,096	)		(256,262	)		(446,981	)
Net increase (decrease) in net assets resulting from shares transactions		65,849,289			6,631,413			46,360,417			61,552,375
Increase in Net Assets		81,046,459			40,577,728			122,499,629			171,199,105
NET ASSETS:
Beginning of year		127,424,072			86,846,344			427,782,688			256,583,583
End of year	$	208,470,531		$	127,424,072		$	550,282,317		$	427,782,688
Undistributed net investment income (loss) at end of year	$	(8,300	)	$	(5,951	)	$	2,252,829		$	1,889,940
CHANGES IN SHARES OUTSTANDING:
Shares sold		17,700,000			8,550,000			12,650,000			9,700,000
Shares repurchased		(9,800,000	)		(7,650,000	)		(10,000,000	)		(5,000,000	)
Shares outstanding, beginning of year		15,100,000			14,200,000			30,000,000			25,300,000
Shares outstanding, end of year		23,000,000			15,100,000			32,650,000			30,000,000

Financial Highlights

PowerShares Buyback Achievers^TM Portfolio

	Year Ended April 30,												For the Period December 20, 2006* Through
	2011			2010			2009			2008			April 30, 2007
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	22.36		$	16.15		$	22.64		$	25.99		$	24.98
Net investment income**		0.11			0.19			0.26			0.10			0.01
Net realized and unrealized gain (loss) on investments		4.87			6.29			(6.55	)		(3.35	)		1.02
Total from investment operations		4.98			6.48			(6.29	)		(3.25	)		1.03
Distributions to shareholders from:
Net investment income		(0.07	)		(0.27	)		(0.20	)		(0.10	)		(0.02	)
Net asset value at end of period	$	27.27		$	22.36		$	16.15		$	22.64		$	25.99
Share price at end of period***	$	27.27		$	22.37		$	16.16
NET ASSET VALUE, TOTAL RETURN****		22.34	%		40.46	%		(27.87	)%		(12.53	)%		4.13	%
SHARE PRICE TOTAL RETURN****		22.29	%		40.43	%		(27.80	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	43,637		$	38,019		$	27,456		$	61,132		$	62,383
Ratio to average net assets of:
Expenses, after (Waivers) and/or Recapture		0.70	%		0.70	%		0.70	%		0.73	%		0.73	%†
Expenses, prior to (Waivers) and/or Recapture		1.00	%		0.97	%		0.92	%		0.79	%		1.04	%†
Net investment income, after (Waivers) and/or Recapture		0.49	%		0.98	%		1.39	%		0.41	%		0.15	%†
Portfolio turnover rate ††		26	%		23	%		56	%		46	%		38	%
Undistributed net investment income (loss) included in price of units issued and redeemed**#	$	0.00	^(a)	$	0.00	^(a)	$	(0.02	)	$	(0.01	)	$	0.01

PowerShares Dividend Achievers^TM Portfolio

	Year Ended April 30,
	2011			2010			2009			2008			2007
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of year	$	13.21		$	10.30		$	16.15		$	17.52		$	15.63
Net investment income**		0.31			0.27			0.36			0.37			0.32
Net realized and unrealized gain (loss) on investments		2.08			2.96			(5.92	)		(1.41	)		1.88
Total from investment operations		2.39			3.23			(5.56	)		(1.04	)		2.20
Distributions to shareholders from:
Net investment income		(0.31	)		(0.32	)		(0.29	)		(0.33	)		(0.31	)
Net asset value at end of year	$	15.29		$	13.21		$	10.30		$	16.15		$	17.52
Share price at end of year***	$	15.29		$	13.21		$	10.30
NET ASSET VALUE, TOTAL RETURN****		18.39	%		31.76	%		(34.84	)%		(6.00	)%		14.26	%
SHARE PRICE TOTAL RETURN****		18.39	%		31.76	%		(34.84	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of year (000's omitted)	$	217,859		$	133,380		$	85,451		$	59,751		$	70,079

Ratio to average net assets of:

Expenses, after (Waivers) and/or Recapture		0.60	%		0.60	%		0.60	%		0.60	%		0.60	%
Expenses, prior to (Waivers) and/or Recapture		0.61	%		0.64	%		0.74	%		0.72	%		0.92	%
Net investment income, after (Waivers) and/or Recapture		2.30	%		2.28	%		3.11	%		2.15	%		1.94	%
Portfolio turnover rate ††		11	%		18	%		31	%		8	%		9	%
Undistributed net investment income (loss) included in price of units issued and redeemed**#	$	0.03		$	0.01		$	0.03		$	(0.01	)	$	0.03

* 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 return calculated for a period of less than one year is 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.

Financial Highlights (Continued)

PowerShares Financial Preferred Portfolio

	Year Ended April 30,												For the Period December 1, 2006* Through
	2011			2010			2009			2008			April 30, 2007
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	16.97		$	11.41		$	21.17		$	24.78		$	25.12
Net investment income**		1.18			1.31			1.35			1.35			0.41
Net realized and unrealized gain (loss) on investments		1.36			5.61			(9.63	)		(3.50	)		(0.12	)
Total from investment operations		2.54			6.92			(8.28	)		(2.15	)		0.29
Distributions to shareholders from:
Net investment income		(1.21	)		(1.30	)		(1.46	)		(1.46	)		(0.63	)
Return of capital		(0.04	)		(0.06	)		(0.02	)		—			—
Total distributions		(1.25	)		(1.36	)		(1.48	)		(1.46	)		(0.63	)
Net asset value at end of period	$	18.26		$	16.97		$	11.41		$	21.17		$	24.78
Share price at end of period***	$	18.28		$	16.93		$	11.41
NET ASSET VALUE, TOTAL RETURN****		15.57	%		62.16	%		(39.56	)%		(8.77	)%		1.18	%
SHARE PRICE TOTAL RETURN****		15.97	%		61.76	%		(39.82	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	1,832,516		$	1,714,824		$	773,644		$	237,126		$	99,118
Ratio to average net assets of:
Expenses, after (Waivers) and/or Recapture		0.66	%		0.65	%		0.69	%		0.72	%		0.72	%†
Expenses, prior to (Waivers) and/or Recapture		0.66	%		0.65	%		0.68	%		0.74	%		0.89	%†
Net investment income, after (Waivers) and/or Recapture		6.75	%		8.30	%		11.49	%		6.20	%		4.63	%†
Portfolio turnover rate ††		26	%		23	%		45	%		80	%		0	%
Undistributed net investment income (loss) included in price of units issued and redeemed**#	$	0.00	^(a)	$	(0.02	)	$	0.02		$	0.03		$	0.07

PowerShares High Yield Equity Dividend Achievers^TM Portfolio

	Year Ended April 30,
	2011			2010			2009			2008			2007
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of year	$	8.44		$	6.12		$	11.36		$	15.82		$	15.07
Net investment income**		0.34			0.32			0.43			0.62			0.54
Net realized and unrealized gain (loss) on investments		0.63			2.35			(5.21	)		(4.42	)		0.84
Total from investment operations		0.97			2.67			(4.78	)		(3.80	)		1.38
Distributions to shareholders from:
Net investment income		(0.34	)		(0.33	)		(0.43	)		(0.63	)		(0.60	)
Return of capital		(0.01	)		(0.02	)		(0.03	)		(0.03	)		(0.03	)
Total distributions		(0.35	)		(0.35	)		(0.46	)		(0.66	)		(0.63	)
Net asset value at end of year	$	9.06		$	8.44		$	6.12		$	11.36		$	15.82
Share price at end of year***	$	9.06		$	8.44		$	6.12
NET ASSET VALUE, TOTAL RETURN****		11.91	%		44.59	%		(42.88	)%		(24.67	)%		9.28	%
SHARE PRICE TOTAL RETURN**** 11.91%		44.58	%		(42.88	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of year (000's omitted)	$	208,471		$	127,424		$	86,846		$	184,077		$	439,820

Ratio to average net assets of:

Expenses, after (Waivers) and/or Recapture		0.60	%		0.60	%		0.60	%		0.60	%		0.60	%
Expenses, prior to (Waivers) and/or Recapture		0.62	%		0.65	%		0.62	%		0.56	%		0.60	%
Net investment income, after (Waivers) and/or Recapture		4.02	%		4.42	%		5.24	%		4.35	%		3.47	%
Portfolio turnover rate ††		44	%		57	%		77	%		42	%		20	%
Undistributed net investment income (loss) included in price of units issued and redeemed**#	$	0.00	^(a)	$	0.00	^(a)	$	0.00	^(a)	$	0.02		$	0.00	^(a)

* Commencement of Investment Operations.

** Based on average shares outstanding.

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

† 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.

Financial Highlights (Continued)

PowerShares International Dividend Achievers^TM Portfolio

	Year Ended April 30,
	2011			2010			2009			2008			2007
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of year	$	14.26		$	10.14		$	19.63		$	20.12		$	16.92
Net investment income*		0.47			0.35			0.52			0.68			0.53
Net realized and unrealized gain (loss) on investments		2.59			4.24			(9.46	)		(0.61	)		3.20
Total from investment operations		3.06			4.59			(8.94	)		0.07			3.73
Distributions to shareholders from:
Net investment income		(0.47	)		(0.47	)		(0.55	)		(0.56	)		(0.53	)
Net asset value at end of year	$	16.85		$	14.26		$	10.14		$	19.63		$	20.12
Share price at end of year**	$	16.89		$	14.26		$	10.15
NET ASSET VALUE, TOTAL RETURN***		21.95	%		45.77	%		(46.44	)%		0.34	%		22.56	%
SHARE PRICE TOTAL RETURN***		22.23	%		45.62	%		(46.30	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of year (000's omitted)	$	550,282		$	427,783		$	256,584		$	551,630		$	553,200

Ratio to average net assets of:

Expenses, after (Waivers) and/or Recapture		0.58	%		0.57	%		0.57	%		0.58	%		0.60	%
Expenses, prior to (Waivers) and/or Recapture		0.58	%		0.57	%		0.57	%		0.56	%		0.62	%
Net investment income, after (Waivers) and/or Recapture		3.20	%		2.65	%		3.87	%		3.28	%		2.98	%
Portfolio turnover rate †		42	%		63	%		50	%		43	%		22	%
Undistributed net investment income (loss) included in price of units issued and redeemed*#	$	0.01		$	0.02		$	(0.01	)	$	(0.02	)	$	0.11

* 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 return calculated for a period of less than one year is not 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.

See Notes to Financial Statements.

Notes to Financial Statements

PowerShares Exchange-Traded Fund Trust

April 30, 2011

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 April 30, 2011, the Trust offered fifty-six portfolios. This report includes the following portfolios:

Full Name				Short Name
PowerShares Buyback Achievers^TM Portfolio				"Buyback Achievers^TM Portfolio"

PowerShares Dividend Achievers^TM Portfolio				"Dividend Achievers^TM Portfolio"

PowerShares Financial Preferred Portfolio				"Financial Preferred Portfolio"

PowerShares High Yield Equity Dividend Achievers^TM Portfolio				"High Yield Equity Dividend Achievers^TM Portfolio"

PowerShares International Dividend Achievers^TM Portfolio				"International Dividend Achievers^TM 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. 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 by Authorized Participants, the Shares are not individually redeemable securities of the Funds.

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

Fund				Index
Buyback Achievers^TM Portfolio				Share BuyBack Achievers^TM Index

Dividend Achievers^TM Portfolio				Broad Dividend Achievers^TM Index

Financial Preferred Portfolio				Wells Fargo^® Hybrid & Preferred Securities Financial Index

High Yield Equity Dividend Achievers^TM Portfolio				Mergent Dividend Achievers^TM 50 Index

International Dividend Achievers^TM Portfolio				International Dividend Achievers^TM Index

Note 2. Significant Accounting Policies

The preparation of the financial statements in accordance with Generally Accepted Accounting Principles ("GAAP") 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.

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

April 30, 2011

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 reflect 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 accounting 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.

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

April 30, 2011

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

Replication Management Risk. Unlike many investment companies, the Funds do not utilize an investing strategy that seeks returns in excess of each Fund's respective Underlying Index. Therefore, a Fund would not necessarily sell a security unless that security is removed from its respective Underlying Index.

Non-Diversified Fund Risk. Buyback Achievers^TM Portfolio and Financial Preferred Portfolio are considered non-diversified and can invest a greater portion of assets in securities of individual issuers than a diversified fund. As a result, changes in the market value of a single investment could cause greater fluctuations in Share price than would occur in a diversified fund.

Concentration Risk. To the extent a Fund concentrates its investments in an industry or group of industries, the value of the Fund's Shares may rise and fall more than the value of Shares of a fund that invests in a broader range of securities.

Non-Correlation Risk. Each Fund's return may not match the return of its Underlying Index for a number of reasons. For example, each Fund incurs operating expenses not applicable to the Underlying Index, and incurs costs in buying and selling securities, especially when rebalancing the Fund's securities holdings to reflect changes in the composition of its Underlying Index. In addition, the performance of each Fund and its Underlying Index may vary due to asset valuation differences and differences between each Fund's portfolio and its Underlying Index resulting from legal restrictions, cost or liquidity constraints. For Financial Preferred Portfolio, because the Fund's Underlying Index does not meet the diversification requirements set forth in the Internal Revenue Code, the Fund may not be able to invest in all of the stocks comprising its Underlying Index in proportion to their weightings in the Underlying Index at all times.

Foreign and Emerging Market Securities Risk. With respect to International Dividend Achievers^TM Portfolio, investments in the securities of non-U.S. issuers involve risks beyond those associated with investments in U.S. securities. These additional risks include greater market volatility, the availability of less reliable financial information, higher transactional costs, taxation by foreign governments, decreased market liquidity and political instability. As certain Funds will invest in securities denominated in foreign currencies, changes in currency exchange rates may negatively impact the Fund's returns.

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

April 30, 2011

overall securities market. Often small and medium capitalization companies and the industries in which they are focused are still evolving and may make them be more sensitive to changing market conditions.

Preferred Securities Risk. There are special risks associated with the Financial Preferred Portfolio's investments in preferred securities. Preferred securities may include provisions that permit the issuer, in its discretion, to defer or omit distributions for a certain period of time. If the Fund owns a security that is deferring or omitting its distributions, the Fund may be required to report the distribution on its tax returns, even though it may not have received this income. Further, preferred securities may lose substantial value due to the omission or deferment of dividend payments. Preferred securities may be less liquid than many other securities, such as common stocks, and generally offer no voting rights with respect to the issuer. Preferred securities may also be subordinated to bonds or other debt instruments in an issuer's capital structure, subjecting them to a greater risk of non-payment than more senior securities. In addition, in certain circumstances, an issuer of preferred securities may redeem the securities prior to a specified date, and this may negatively impact the return of the security. Certain of the companies that comprise the Fund's Underlying Index, while traded on U.S. exchanges, may be issued by foreign financial institutions and, therefore, subject the Fund to the risks of investing in securities issued by foreign companies.

High Yield Securities Risk. With respect to Financial Preferred Portfolio investments in high yield securities may involve greater risk and are generally less liquid than higher grade issues. The ability of issuers of high yield securities to make timely payments of interest and principal may be adversely impacted by changes in general economic conditions, changes in the financial condition of the issuers and changes in interest rates.

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 GAAP. 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.

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.

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

April 30, 2011

E. Expenses

Expenses of the Trust that are directly identifiable to a specific Fund are applied to that Fund. Expenses that 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 is responsible for all 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, sub-licensing fees related to its respective Underlying Intellidex or Underlying Index, any distribution fees or expenses, litigation expenses, fees payable to the Trust's Board members and officers who are not "interested persons" of the Trust or the Adviser, expenses incurred in connection with the Board members' services, including travel expenses and legal fees of counsel for those members of the Board who are not "interested persons" of the Trust and extraordinary expenses.

F. Dividends and Distributions to Shareholders

Each Fund (except for the High Yield Equity Dividend Achievers^TM Portfolio and Financial Preferred Portfolio, which declare and pay dividends, if any, monthly) 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 them on ex-dividend date. Such distributions on a tax basis are determined in conformity with income tax regulations which may differ from GAAP. 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 of the 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.

Note 3. Investment Advisory Agreement and Other Agreements

The Trust has entered into an Investment Advisory Agreement with Invesco PowerShares Capital Management LLC (the "Adviser") pursuant to 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 has agreed to pay the Adviser an annual fee of 0.40% of the Fund's average daily net assets except for the Buyback Achievers^TM Portfolio and Financial Preferred Portfolio, which pay the Adviser an annual fee of 0.50% of that Fund's average daily net assets.

The Adviser has entered into an Amended and Restated Excess Expense Agreement ("Excess Expense Agreement") with the Trust, pursuant to which 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, sub-licensing fees, offering costs, taxes and

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

April 30, 2011

extraordinary expenses) from exceeding 0.50% of the Fund's average daily net assets per year (0.60% of the Fund's average daily net assets per year for the Buyback Achievers^TM Portfolio and Financial Preferred Portfolio) (the "Expense Cap"), at least until August 31, 2012. Offering costs excluded from the Expense Cap are: (a) initial legal fees pertaining to the Funds' Shares offered for sale; (b) initial Securities and Exchange Commission and state registration fees; and (c) initial fees paid to be listed on an exchange.

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.

The amounts available for potential future recapture by the Adviser under the Excess Expense Agreement and the expiration schedule at April 30, 2011 are as follows:

	Total Potential		Potential Recapture Amounts Expiring
	Recapture Amounts		04/30/12		04/30/13		04/30/14
Buyback Achievers^TM Portfolio	$	300,057	$	98,219	$	91,435	$	110,403
Dividend Achievers^TM Portfolio		176,527		98,990		55,625		21,912
Financial Preferred Portfolio		27,977		—		—		27,977
High Yield Equity Dividend Achievers^TM Portfolio		140,409		48,203		51,657		40,549
International Dividend Achievers^TM Portfolio		2,628		—		—		2,628

The Trust has entered into a Distribution Agreement with Invesco 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 Distributor is an affiliate of the Adviser.

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

Fund				Licensor
Buyback Achievers^TM Portfolio				Mergent, Inc.

Dividend Achievers^TM Portfolio				Mergent, Inc.

Financial Preferred Portfolio				Wells Fargo Securities, LLC

High Yield Equity Dividend Achievers^TM Portfolio				Mergent, Inc.

International Dividend Achievers^TM Portfolio				Mergent, Inc.

Each Underlying Index name trademark is 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 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 and fund accountant and transfer agent for each Fund.

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

April 30, 2011

Note 4. Investments in Affiliates

The 1940 Act defines "affiliate" to include issuers of which a fund holds 5% or more of the outstanding voting securities. The following is a summary of the transactions with affiliates for the fiscal year ended April 30, 2011.

International Dividend Achievers^TM Portfolio

				Value 04/30/10				Purchases at Cost				Proceeds from Sales				Change in Unrealized Appreciation (Depreciation)				Realized Gain (Loss)				Value 04/30/11				Dividend Income
Consolidated Water Co. Ltd.				$	3,873,421			$	8,191,247			$	(2,102,451	)		$	(754,491	)		$	(1,038,968	)		$	8,168,758			$	167,005

Note 5. Additional Valuation Information

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, yield curves, loss severities, default rates, discount rates, volatilities 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.

As of April 30, 2011, the securities in each Fund were valued based on Level 1 inputs. 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.

With respect to each Fund, during the fiscal year ended April 30, 2011, there were no significant transfers between investment levels.

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

April 30, 2011

Note 6. Distributions to Shareholders and Tax Components of Net Assets

Tax Character of Distributions to Shareholders Paid During the Fiscal Years Ended April 30, 2011 and 2010:

	2011				2010
	Ordinary Income		Return of Capital		Ordinary Income		Return of Capital
Buyback Achievers^TM Portfolio	$	111,858	$	—	$	467,441	$	—
Dividend Achievers^TM Portfolio		4,080,812		—		2,653,314		—
Financial Preferred Portfolio⁽¹⁾		117,851,509		4,382,771		86,530,325		4,876,161
High Yield Equity Dividend Achievers^TM Portfolio		6,552,543		277,932		4,674,671		344,802
International Dividend Achievers^TM Portfolio		13,859,836		—		12,740,323		—

⁽¹⁾ Tax year-end is October 31

Tax Components of Net Assets at Fiscal Year-End:

	Undistributed Ordinary Income		Temporary Book/Tax Differences			Net Unrealized Appreciation		Capital Loss Carryforward			Post-October Deferrals*			Shares of Beneficial Interest		Total Net Assets
Buyback Achievers^TM Portfolio	$	67,751	$	(5,065	)	$	3,782,051	$	(24,328,400	)	$	(736,946	)	$	64,857,245	$	43,636,636
Dividend Achievers^TM Portfolio		613,171		(6,720	)		34,172,355		(18,709,998	)		(470,928	)		202,261,374		217,859,254
Financial Preferred Portfolio⁽¹⁾		—		(21,955	)		314,497,839		(48,730,612	)		—			1,562,175,645		1,827,920,917
High Yield Equity Dividend Achievers^TM Portfolio		—		(8,300	)		17,087,447		(143,290,793	)		—			334,682,177		208,470,531
International Dividend Achievers^TM Portfolio		2,269,425		(16,596	)		61,975,391		(219,328,254	)		—			705,382,351		550,282,317

* Capital losses incurred after October 31 ("post-October losses") within the taxable year are deemed to arise on the first business day of each Fund's next taxable year.

⁽¹⁾ Tax year-end is October 31

Capital loss carryforward is 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 ability to utilize capital loss carryforward in the future may be limited under Internal Revenue Code rules and related regulations based on the results of future transactions.

The following Funds had capital loss carryforward amounts as of April 30, 2011, which expire on April 30 of each year listed below:

	2014		2015		2016		2017		2018		2019		Total**
Buyback Achievers(TM) Portfolio	$	—	$	178,870	$	9,098,882	$	800,254	$	12,142,749	$	2,107,645	$	24,328,400
Dividend Achievers(TM) Portfolio		7,896		—		50,943		1,716,151		14,632,363		2,302,645		18,709,998
Financial Preferred Portfolio⁽¹⁾		—		2,445,445		29,895,674		9,034,558		7,354,935		—		48,730,612
High Yield Equity Dividend Achievers(TM) Portfolio		2,613,033		7,009,598		5,162,362		81,487,358		44,815,128		2,203,314		143,290,793
International Dividend Achievers(TM) Portfolio		183,478		221,461		1,975,339		59,472,841		145,514,837		11,960,298		219,328,254

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

⁽¹⁾ Tax year-end and carryforward expiration is October 31

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

April 30, 2011

Note 7. Investment Transactions

For the fiscal year ended April 30, 2011, 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
Buyback Achievers^TM Portfolio	$	9,638,102	$	9,286,948
Dividend Achievers^TM Portfolio		34,679,008		20,039,623
Financial Preferred Portfolio		483,854,104		444,759,572
High Yield Equity Dividend Achievers^TM Portfolio		72,394,257		71,757,735
International Dividend Achievers^TM Portfolio		195,208,012		189,413,494

For the fiscal year ended April 30, 2011, in-kind transactions associated with creations and redemptions were as follows:

	Securities Received		Securities Delivered
Buyback Achievers^TM Portfolio	$	31,731,395	$	33,670,838
Dividend Achievers^TM Portfolio		89,930,454		51,483,127
Financial Preferred Portfolio		110,492,539		148,292,450
High Yield Equity Dividend Achievers^TM Portfolio		148,072,622		83,606,086
International Dividend Achievers^TM Portfolio		261,969,117		219,445,699

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

At April 30, 2011 the aggregate cost and the net unrealized appreciation of investments for tax purposes were as follows:

	Cost		Net Unrealized Appreciation		Gross Unrealized Appreciation		Gross Unrealized (Depreciation)
Buyback Achievers^TM Portfolio	$	39,913,732	$	3,782,051	$	4,272,607	$	(490,556	)
Dividend Achievers^TM Portfolio		183,676,077		34,172,355		34,608,473		(436,118	)
Financial Preferred Portfolio⁽¹⁾		1,429,547,096		314,497,839		314,617,482		(119,643	)
High Yield Equity Dividend Achievers^TM Portfolio		191,273,881		17,087,447		18,506,609		(1,419,162	)
International Dividend Achievers^TM Portfolio		489,149,366		61,975,391		64,856,312		(2,880,921	)

⁽¹⁾ Tax year-end is October 31

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

April 30, 2011

Note 8. Reclassification of Permanent Differences

Primarily as a result of differing book/tax treatment of investment activity, on April 30, 2011, amounts were reclassified between undistributed net investment income (loss), undistributed net realized gain (loss) and Share of beneficial interest. These reclassifications had no effect on the net assets of each Fund. For the fiscal year ended April 30, 2011, the reclassifications were as follows:

	Undistributed Net Investment Income (Loss)			Undistributed Net Realized Gain (Loss)			Shares of Beneficial Interest
Buyback Achievers^TM Portfolio	$	(4,185	)	$	(7,419,925	)	$	7,424,110
Dividend Achievers^TM Portfolio		(401,400	)		(9,035,842	)		9,437,242
Financial Preferred Portfolio⁽¹⁾		5,532,231			(65,648,817	)		60,116,586
High Yield Equity Dividend Achievers^TM Portfolio		(65,191	)		(10,871,433	)		10,936,624
International Dividend Achievers^TM Portfolio		(256,041	)		(38,405,692	)		38,661,733

⁽¹⁾ Tax year-end is October 31

Note 9. Trustees' Fees

The Funds compensate each Trustee who is not an "interested person" as defined in the 1940 Act (an "Independent Trustee"). The Non-Independent Trustees of the Trust do not receive any Trustees' fees.

The Trust has adopted a deferred compensation plan (the "Plan"). Under the Plan, a Trustee who 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 select PowerShares Funds. The Deferral Fees payable to the Participating Trustee are valued as of the date such 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 10. 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 11. 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.

Report of Independent Registered Public Accounting Firm

To the Board of Trustees and Shareholders of PowerShares Exchange-Traded Fund Trust:

In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of each of the portfolios indicated in Note 1 of the financial statements (each a portfolio of PowerShares Exchange-Traded Fund Trust, hereafter referred to as the "Trust") at April 30, 2011, and the results of each of their operations, the changes in each of their net assets, and the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Trust's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at April 30, 2011 by correspondence with the custodian and brokers, and the application of alternative auditing procedures where securities purchased had not been received, provide a reasonable basis for our opinion.

/s/ PricewaterhouseCoopers LLP
New York, New York
June 24, 2011

Tax Information

Form 1099-DIV, Form 1042-S and other year-end tax information provide shareholders with actual calendar year amounts that should be included in their tax returns. Shareholders should consult their tax advisors.

The following distribution information is being provided as required by the Internal Revenue Code or to meet a specific state's requirement.

Each Fund designates the following amounts or, if subsequently determined to be different the maximum amount allowable for its fiscal year ended April 30, 2011:

Federal Income Tax Information

	Qualified Dividend Income*			Corporate Dividends Received Deduction*
Buyback Achievers^TM Portfolio		100	%		100	%
Dividend Achievers^TM Portfolio		100	%		100	%
Financial Preferred Portfolio⁽¹⁾		100	%		44	%
High Yield Equity Dividend Achievers^TM Portfolio		100	%		100	%
International Dividend Achievers^TM Portfolio		100	%		0	%

The Fund intends to elect to pass through to shareholders the credit for taxes paid to foreign countries. The gross foreign source income and foreign taxes paid are as follows:

				Foreign Source Income				Foreign Taxes
International Dividend Achievers^TM Portfolio				$	18,314,430			$	1,475,412

* The above percentages are based on ordinary income dividends paid to shareholders during the Fund's fiscal year.

⁽¹⁾ Tax year-end is October 31.

Supplemental Information

Trustees and Officers

The Independent Trustees, the Trustees who are affiliated with the Adviser (the "Non-Independent Trustees") and the executive officers of the Trust, their term of office and length of time served, their principal business occupations during at least the past five years, the number of portfolios in the Fund Complex overseen by each Trustee and the other directorships, if any, held by a Trustee, are shown below.

The Trustees and Officers information is current as of April 30, 2011.

Name, Address and Age of
Independent Trustees

Position(s)
Held
with Trust

Term of
Office
and
Length of
Time
Served*

Principal
Occupation(s) During
Past 5 Years

Number of
Portfolios
in Fund
Complex**
Overseen by
Independent
Trustees

Other Directorships Held
by Independent Trustees

Ronn R. Bagge
(53)
c/o Invesco PowerShares
Capital Management LLC
301 West Roosevelt Road
Wheaton, IL 60187

Trustee

Since 2003

Founder and Principal, YQA Capital Management LLC (1998-Present); formerly Owner/CEO of Electronic Dynamic Balancing Co., Inc. (high-speed rotating equipment service provider)

107

None

Todd J. Barre
(53)
c/o Invesco PowerShares
Capital Management LLC
301 West Roosevelt Road
Wheaton, IL 60187

Trustee

Since 2010

Assistant Professor of Business, Trinity Christian College (2010-Present); formerly Vice President and Senior Investment Strategist (2001-2008), Director of Open Architecture and Trading (2007-2008); Head of Fundamental Research (2004-2007); and Vice President and Senior Fixed Income Strategist (1994-2001). BMO Financial Group/Harris Private Bank

107

None

* This is the date the Trustee began serving the Trust. Each Trustee serves an indefinite term, until his successor is elected.

** Fund Complex includes all open-end funds (including all of their portfolios) advised by the Adviser. At April 30, 2011, the Fund Complex consisted of the Trust's 56 portfolios and three other exchange-traded fund trusts with 51 portfolios advised by the Adviser.

Supplemental Information (Continued)

Trustees and Officers (Continued)

Name, Address and Age of
Independent Trustees

Position(s)
Held
with Trust

Term of
Office
and
Length of
Time
Served*

Principal
Occupation(s) During
Past 5 Years

Number of
Portfolios
in Fund
Complex**
Overseen by
Independent
Trustees

Other Directorships Held
by Independent Trustees

Marc M. Kole
(50)
c/o Invesco PowerShares Capital Management LLC
301 West Roosevelt Road
Wheaton, IL 60187

Trustee

Since 2006

Chief Financial Officer, Hope Network (social services) (2008-Present); formerly Assistant Vice President and Controller, Priority Health (health insurance) (2005-2008); Senior Vice President of Finance, United Healthcare (2004-2005); Senior Vice President of Finance, Oxford Health Plans (2000-2004)

107

None

Philip M. Nussbaum
(49)
c/o Invesco PowerShares Capital Management LLC
301 West Roosevelt Road
Wheaton, IL 60187

Trustee

Since 2003

Chairman, Performance Trust Capital Partners (2004-Present)

107

None

* This is the date the Trustee began serving the Trust. Each Trustee serves an indefinite term, until his successor is elected.

Supplemental Information (Continued)

Trustees and Officers (Continued)

Name, Address and Age of
Independent Trustees

Position(s)
Held
with Trust

Term of
Office
and
Length of
Time
Served*

Principal
Occupation(s) During
Past 5 Years

Number of
Portfolios
in Fund
Complex**
Overseen by
Independent
Trustees

Other Directorships Held
by Independent Trustees

Donald H. Wilson
(51)
c/o Invesco PowerShares Capital Management LLC
301 West Roosevelt Road
Wheaton, IL 60187

Trustee

Since 2006

Chairman and Chief Executive Officer, Stone Pillar Advisers, Ltd. (2010-Present); formerly, Chief Operating Officer, AMCORE Financial, Inc. (bank holding company) (2007-2009); Executive Vice President and Chief Financial Officer, AMCORE Financial, Inc. (2006-2007); Senior Vice President and Treasurer, Marshall & Ilsley Corp. (bank holding company) (1995-2006)

107

None

* This is the date the Trustee began serving the Trust. Each Trustee serves an indefinite term, until his successor is elected.

Supplemental Information (Continued)

Trustees and Officers (Continued)

Name, Address and Age of
Interested Trustees

Position(s)
Held
with Trust

Term of
Office
and
Length of
Time
Served*

Principal
Occupation(s) During
Past 5 Years

Number of
Portfolios
in Fund
Complex**
Overseen by
Interested
Trustees

Other Directorships Held
by Interested Trustees

H. Bruce Bond
(47)
Invesco PowerShares Capital Management LLC
301 West Roosevelt Road
Wheaton, IL 60187

Chairman of the Board and Trustee

Since 2003

Chairman, Invesco Power-Shares Capital Management LLC (2009-Present); formerly, Managing Director, Invesco PowerShares Capital Management LLC (2002-2009); Manager, Nuveen Investments (1998-2002)

107

None

* This is the date the Trustee began serving the Trust. Each Trustee serves an indefinite term, until his successor is elected.

Supplemental Information (Continued)

Trustees and Officers (Continued)

Name, Address and Age of
Interested Trustees

Position(s)
Held
with Trust

Term of
Office
and
Length of
Time
Served*

Principal
Occupation(s) During
Past 5 Years

Number of
Portfolios
in Fund
Complex**
Overseen by
Interested
Trustees

Other Directorships Held
by Interested Trustees

Kevin M. Carome
(54)
Invesco Ltd.
Two Peachtree Pointe 1555 Peachtree St., N.E. Suite 1800
Atlanta, GA 30309

Trustee

Since 2010

Senior Managing Director and General Counsel, Invesco Ltd. (2006-Present); formerly Senior Vice President and General Counsel, Invesco Advisors, Inc. (2003-2005); Senior Vice President and General Counsel, Liberty Financial Companies, Inc. (2000-2001); General Counsel of certain investment management subsidiaries of Liberty Financial Companies, Inc. (1998-2000); Associate General Counsel, Liberty Financial Companies, Inc. (1993-1998); Associate, Ropes & Gray LLP

107

None

* This is the date the Trustee began serving the Trust. Each Trustee serves an indefinite term, until his successor is elected.

Supplemental Information (Continued)

Trustees and Officers (Continued)

Name, Address and
Age of Executive Officer

Position(s)
Held
with Trust

Length of
Time
Served*

Principal Occupation(s) During Past 5 Years

Andrew Schlossberg
(36)
Invesco Management Group, Inc.
11 Greenway Plaza
Suite 100
Houston, TX 77046

President

Since 2009

Managing Director, U.S. head of business strategy and chief marketing officer for Invesco Ltd. in the United States (2008-Present); formerly Mr. Schlossberg served in multiple roles within Invesco, including head of corporate development, as well as global leadership roles in strategy and product development in the company's North American Institutional and Retirement divisions (2002-2007)

Bruce T. Duncan
(56)
Invesco PowerShares Capital Management LLC
301 West Roosevelt Road
Wheaton, IL 60187

Treasurer and Secretary

Treasurer since 2006 and Secretary since 2008

Senior Vice President of Finance, Invesco PowerShares Capital Management LLC (2005-Present); formerly Private Practice Attorney (2000-2005); Vice President of Investor Relations. The ServiceMaster Company (1994-2000); Vice President of Taxes, The ServiceMaster Company (1990-2000)

Benjamin Fulton
(49)
Invesco PowerShares Capital Management LLC 301 West Roosevelt Road Wheaton, IL 60187

Vice President

Since 2009

Executive Vice President – Global Product Development, Invesco PowerShares Capital Management LLC (2005-Present); formerly principal of Clermont Consulting, a consulting firm focused on the creation and development of retail investment products (2003-2005); President and a founding partner of Claymore Securities, a financial services firm in the Chicagoland area (2001-2003); Managing Director of Structured Investments at Nuveen Investments (1998-2001)

Peter Hubbard
(29)
Invesco PowerShares
Capital Management LLC
301 West Roosevelt Road
Wheaton, IL 60187

Vice President

Since 2009

Vice President and Director of Portfolio Management – Invesco PowerShares Capital Management LLC (2008-Present); formerly Portfolio Manager, Invesco PowerShares Capital Management LLC (2007-2008); Research Analyst, Invesco PowerShares Capital Management LLC (2005-2007); Research Analyst and Trader, Ritchie Capital, a hedge fund operator (2003-2005)

* This is the date the Officer began serving the Trust. Each Officer serves a one-year term, until his successor is elected.

Supplemental Information (Continued)

Trustees and Officers (Continued)

Name, Address and
Age of Executive Officer

Position(s)
Held
with Trust

Length of
Time
Served*

Principal Occupation(s) During Past 5 Years

David Warren
(53)
Invesco Trimark Ltd. 5140 Yonge Street
Suite 900
Toronto,
Ontario M2N 6X7

Vice President

Since 2009

Director, Executive Vice President and Chief Financial Officer, Invesco Trimark Ltd. and Chief Administrative Officer, North American Retail, Invesco Ltd. (2007-Present); formerly Director, Executive Vice President and Chief Financial Officer, Invesco Trimark Ltd. (2000-2006)

Todd Spillane
(51)
Invesco Management Group, Inc.
11 Greenway Plaza
Suite 100
Houston, TX 77046

Chief Compliance Officer

Since 2010

Senior Vice President, Invesco Management Group, Inc.; Chief Compliance Officer, INVESCO Private Capital Investments, Inc. (holding company), Invesco Private Capital, Inc. (registered investment adviser) and Invesco Senior Secured Management, Inc. (registered investment adviser); Chief Compliance Officer and Senior Vice President, Invesco Advisers, Inc. (formerly Invesco Institutional (N.A.), Inc. – registered investment adviser) and Vice President, Invesco Distributors, Inc. and Invesco Investment Services, Inc.; formerly Chief Compliance Officer, Invesco Global Asset Management (N.A.), Inc. – (registered investment adviser) and Invesco Advisers, Inc. (formerly Invesco Institutional (N.A.), Inc.) (registered investment adviser); Senior Vice President and Chief Compliance Officer, Invesco Advisors, Inc., Invesco Capital Management, Inc. and Invesco Private Asset Management, Inc.; Vice President, Invesco Capital Management, Inc. and Fund Management Company

Availability of Additional Information About the Trustees

The Statement of Additional Information includes additional information about the Trustees and is available, without charge, upon request at (800) 983-0903.

* This is the date the Officer began serving the Trust. Each Officer serves a one-year term, until his successor is elected.

Board Considerations Regarding Continuation of Investment Advisory Agreement

At a meeting held on April 14, 2011, the Board of Trustees of the PowerShares Exchange-Traded Fund Trust (the "Trust"), including the Independent Trustees, unanimously approved the continuation of the Investment Advisory Agreement between Invesco PowerShares Capital Management LLC (the "Adviser") and the Trust for the following 54 series (each, a "Fund" and collectively, the "Funds"):

PowerShares Dynamic Market Portfolio

PowerShares Dynamic OTC Portfolio

PowerShares Golden Dragon Halter USX China Portfolio

PowerShares High Yield Equity Dividend Achievers^TM Portfolio

PowerShares WilderHill Clean Energy Portfolio

PowerShares Dynamic Large Cap Growth Portfolio

PowerShares Dynamic Large Cap Value Portfolio

PowerShares Dynamic Mid Cap Growth Portfolio

PowerShares Dynamic Mid Cap Value Portfolio

PowerShares Dynamic Small Cap Growth Portfolio

PowerShares Dynamic Small Cap Value Portfolio

PowerShares Dynamic Biotechnology & Genome Portfolio

PowerShares Dynamic Food & Beverage Portfolio

PowerShares Dynamic Leisure and Entertainment Portfolio

PowerShares Dynamic Media Portfolio

PowerShares Dynamic Networking Portfolio

PowerShares Dynamic Pharmaceuticals Portfolio

PowerShares Dynamic Semiconductors Portfolio

PowerShares Dynamic Software Portfolio

PowerShares Zacks Micro Cap Portfolio

PowerShares Aerospace & Defense Portfolio

PowerShares Morningstar StockInvestor Core Portfolio

PowerShares Dividend Achievers^TM Portfolio

PowerShares International Dividend Achievers^TM Portfolio

PowerShares Dynamic Building and Construction Portfolio

PowerShares Dynamic Energy Exploration and Production Portfolio

PowerShares WilderHill Progressive Energy Portfolio

PowerShares Dynamic Insurance Portfolio

PowerShares Dynamic Oil and Gas Services Portfolio

PowerShares Dynamic Retail Portfolio

PowerShares Dynamic Utilities Portfolio

PowerShares Lux Nanotech Portfolio

PowerShares FTSE RAFI US 1000 Portfolio

PowerShares FTSE RAFI US 1500 Small-Mid Portfolio

PowerShares Water Resources Portfolio

PowerShares Dynamic Energy Sector Portfolio

PowerShares Dynamic Financial Sector Portfolio

PowerShares Dynamic Healthcare Sector Portfolio

PowerShares Dynamic Industrials Sector Portfolio

PowerShares Dynamic Large Cap Portfolio

PowerShares Dynamic MagniQuant Portfolio

PowerShares Dynamic Mid Cap Portfolio

PowerShares Dynamic Small Cap Portfolio

PowerShares Dynamic Technology Sector Portfolio

PowerShares Buyback Achievers^TM Portfolio

PowerShares Cleantech^TM Portfolio

PowerShares Dynamic Banking Portfolio

PowerShares Dynamic Basic Materials Sector Portfolio

PowerShares Dynamic Consumer Discretionary Sector Portfolio

PowerShares Dynamic Consumer Staples Sector Portfolio

PowerShares Financial Preferred Portfolio

PowerShares Global Listed Private Equity Portfolio

PowerShares DWA Technical Leaders^TM Portfolio

PowerShares S&P 500^® High Quality Portfolio

Board Considerations Regarding Continuation of Investment Advisory Agreement (Continued)

The Trustees reviewed information from the Adviser describing: (i) the nature, extent and quality of services provided, (ii) the investment performance of the Funds and the Adviser, (iii) the costs of services provided and estimated profits realized by the Adviser, (iv) the extent to which economies of scale are realized as the Funds grow, (v) whether fee levels reflect any possible economies of scale for the benefit of Fund shareholders, (vi) comparisons of services rendered and amounts paid to other registered investment companies and (vii) any benefits realized by the Adviser from its relationship with each Fund. Based on all of the information considered and the conclusions reached, the Board, including the Independent Trustees, determined to approve the continuation of the Investment Advisory Agreement for each Fund. No single factor was determinative in the Board's analysis.

Nature, Extent and Quality of Services. In evaluating the nature, extent and quality of the Adviser's services, the Trustees reviewed information concerning the functions performed by the Adviser for the Funds, information describing the Adviser's current organization and projected staffing, including operations assistance provided by the Adviser's parent organization, Invesco Ltd., and the background and experience of the persons responsible for the day-to-day management of the Funds. The Trustees reviewed matters related to the Adviser's execution of portfolio transactions on behalf of the Funds. The Trustees also reviewed information on the performance of the Funds and the performance of their underlying indices through December 31, 2010, including reports on the correlation and tracking error between the underlying index and each Fund's performance, as well as the Adviser's analysis of the tracking error between each Fund and its underlying index. The Trustees noted that, in each case, the correlation and tracking error for each Fund was within the targeted range set forth in the Trust's registration statement. The Trustees concluded that each Fund was correlated to its underlying index and that the tracking error for each Fund was within an acceptable range given that Fund's particular circumstances.

The Trustees also considered the services provided by the Adviser in its oversight of the Funds' administrator, custodian and transfer agent. They noted the significant amount of time and effort that had been devoted to this oversight function.

Based on their review, the Trustees concluded that the nature, extent and quality of services provided by the Adviser to the Funds under the Investment Advisory Agreement were appropriate and reasonable.

Fees, Expenses and Profitability. The Trustees reviewed and discussed the information provided by the Adviser on each Fund's expense ratio and advisory fee, as compared to information compiled by the Adviser from Lipper Inc. databases on the expense ratios of comparable exchange-traded funds ("ETFs"), open-end (non-ETF) index funds and open-end actively-managed funds. The Trustees noted that the annual advisory fee charged to each Fund is:

• 0.50% of the Fund's average net assets, for each Fund other than PowerShares High Yield Equity Dividend Achievers(TM) Portfolio, PowerShares Dividend Achievers(TM) Portfolio, PowerShares International Dividend Achievers(TM) Portfolio, PowerShares FTSE RAFI US 1000 Portfolio and PowerShares FTSE RAFI US 1500 Small-Mid Portfolio;

• 0.40% of the Fund's average net assets, for each of PowerShares High Yield Equity Dividend Achievers(TM) Portfolio, PowerShares Dividend Achievers(TM) Portfolio and PowerShares International Dividend Achievers(TM) Portfolio; and

• 0.29% of the Fund's average net assets, for each of PowerShares FTSE RAFI US 1000 Portfolio and PowerShares FTSE RAFI US 1500 Small-Mid Portfolio.

Board Considerations Regarding Continuation of Investment Advisory Agreement (Continued)

The Trustees also noted that the Adviser has agreed to waive a portion of its advisory fee and/or pay expenses (an "Expense Cap") to the extent necessary to prevent the annual operating expenses of each Fund from exceeding the percentage of that Fund's average daily net assets, at least until August 31, 2012, as set forth below:

• 0.60%, excluding interest expenses, brokerage commissions and other trading expenses, taxes and extraordinary expenses, for each of PowerShares Dynamic OTC Portfolio and PowerShares Dynamic Market Portfolio;

• 0.50%, excluding interest expenses, licensing fees, offering costs, brokerage commissions and other trading expenses, taxes and extraordinary expenses, for each of PowerShares High Yield Equity Dividend Achievers(TM) Portfolio, PowerShares Dividend Achievers(TM) Portfolio and PowerShares International Dividend Achievers(TM) Portfolio;

• 0.50%, excluding interest expenses, offering costs, brokerage commissions and other trading expenses, taxes and extraordinary expenses, for each of PowerShares Morningstar StockInvestor Core Portfolio and PowerShares S&P 500^® High Quality Portfolio (the Trustees noted that the Expense Cap for each of these Funds was reduced to 0.50% effective July 1, 2010);

• 0.39%, excluding interest expenses, offering costs, brokerage commissions and other trading expenses, taxes and extraordinary expenses, for each of PowerShares FTSE RAFI US 1000 Portfolio and PowerShares FTSE RAFI US 1500 Small-Mid Portfolio; and

• 0.60%, excluding interest expenses, licensing fees, offering costs, brokerage commissions and other trading expenses, taxes and extraordinary expenses, for each other Fund.

• higher than the median advisory fee of its ETF peer funds (except for the advisory fee of each of PowerShares Financial Preferred Portfolio, PowerShares FTSE RAFI US 1000 Portfolio, PowerShares Global Listed Private Equity Portfolio and PowerShares Golden Dragon Halter USX China Portfolio, which was equal to or lower than the median advisory fee of its ETF peer funds); and

• higher than the median advisory fee of its open-end index peer funds (except for the advisory fee of each of PowerShares DWA Technical Leaders(TM) Portfolio, PowerShares Dynamic Banking Portfolio, PowerShares Dynamic Basic Materials Sector Portfolio, PowerShares Dynamic Biotechnology & Genome Portfolio, PowerShares Dynamic Financial Sector Portfolio, PowerShares Dynamic Healthcare Portfolio, PowerShares Dynamic Insurance Portfolio, PowerShares Dynamic Mid Cap Growth Portfolio, PowerShares Dynamic Networking Portfolio, PowerShares Dynamic OTC Portfolio, PowerShares Dynamic Pharmaceuticals Portfolio, PowerShares Dynamic Semiconductors Portfolio, PowerShares Dynamic Small Cap Growth Portfolio, PowerShares Dynamic Software Portfolio, PowerShares Dynamic Technology Sector Portfolio, PowerShares Golden Dragon Halter USX China Portfolio, PowerShares Lux Nanotech Portfolio, PowerShares Morningstar StockInvestor Core Portfolio and PowerShares S&P 500^® High Quality Portfolio, which was equal to or lower than

Board Considerations Regarding Continuation of Investment Advisory Agreement (Continued)

the median advisory fee of its open-end index peer funds, and there was no comparable data for PowerShares Financial Preferred Portfolio or PowerShares Global Listed Private Equity Portfolio); but

• lower than the median advisory fee of its open-end actively-managed peer funds.

The Trustees determined that the advisory fees were reasonable, noting the complexity of the indices, which generally require more frequent rebalancing of the portfolios, the distinguishing factors of the Funds, and the higher administrative, operational and management oversight costs for the Adviser. With respect to the Funds' expense ratios, the Trustees noted that the net expense ratio for each Fund was:

• higher than the median expense ratio of its ETF peer funds (except for the net expense ratio of each of PowerShares Dynamic Market Portfolio, PowerShares Dynamic OTC Portfolio, PowerShares FTSE RAFI US 1000 Portfolio, PowerShares Golden Dragon Halter USX China Portfolio and PowerShares S&P 500^® High Quality Portfolio, which was equal to or less than the median expense ratio of its ETF peer funds); and

• higher than the median expense ratio of its open-end index peer funds (except for the net expense ratio of each of PowerShares Aerospace & Defense Portfolio, PowerShares Cleantech(TM) Portfolio, PowerShares DWA Technical Leaders(TM) Portfolio, PowerShares Dynamic Banking Portfolio, PowerShares Dynamic Basic Materials Sector Portfolio, PowerShares Dynamic Biotechnology & Genome Portfolio, PowerShares Dynamic Building & Construction Portfolio, PowerShares Dynamic Consumer Discretionary Sector Portfolio, PowerShares Dynamic Consumer Staples Sector Portfolio, PowerShares Dynamic Financial Sector Portfolio, PowerShares Dynamic Food & Beverage Portfolio, PowerShares Dynamic Healthcare Portfolio, PowerShares Dynamic Industrials Sector Portfolio, PowerShares Dynamic Insurance Portfolio, PowerShares Dynamic Large Cap Portfolio, PowerShares Dynamic Large Cap Growth Portfolio, PowerShares Dynamic Leisure and Entertainment Portfolio, PowerShares Dynamic Media Portfolio, PowerShares Dynamic Mid Cap Growth Portfolio, PowerShares Morningstar StockInvestor Core Portfolio, PowerShares Dynamic Networking Portfolio, PowerShares Dynamic OTC Portfolio, PowerShares Dynamic Pharmaceuticals Portfolio, PowerShares Dynamic Retail Portfolio, PowerShares Dynamic Semiconductors Portfolio, PowerShares Dynamic Small Cap Growth Portfolio, PowerShares Dynamic Small Cap Value Portfolio, PowerShares Dynamic Software Portfolio, PowerShares Dynamic Technology Sector Portfolio, PowerShares Dynamic Utilities Sector Portfolio, PowerShares FTSE RAFI US 1000 Portfolio, PowerShares FTSE RAFI US 1500 Small-Mid Portfolio, PowerShares Golden Dragon Halter USX China Portfolio, PowerShares Lux Nanotech Portfolio and PowerShares S&P 500^® High Quality Portfolio, which was equal to or lower than the median expense ratio of its open-end index peer funds, and there was no comparable data for PowerShares Financial Preferred Portfolio or PowerShares Global Listed Private Equity Portfolio); but

• lower than the median expense ratio of its open-end actively-managed peer funds.

The Trustees noted that a significant component of the non-advisory fee expenses was the license fees paid by the Funds, and those Funds for which license fees are included in the Funds' Expense Caps.

The Board concluded that the advisory fee and expense ratio of each Fund (giving effect to the Fund's Expense Cap) were reasonable and appropriate in light of the services provided.

Board Considerations Regarding Continuation of Investment Advisory Agreement (Continued)

In conjunction with their review of fees, the Trustees also considered information provided by the Adviser on the revenues received by the Adviser under the Investment Advisory Agreement for each Fund, as well as the fees waived and expenses reimbursed by the Adviser for the Funds. The Trustees reviewed information provided by the Adviser on its profitability as well as any profits or losses realized by the Adviser from its relationship to each Fund. The Trustees concluded that the estimated profitability to the Adviser of the advisory services provided to any of the Funds was not unreasonable.

Also at the April 14, 2011 meeting, the Adviser proposed reducing the annual advisory fee for each of PowerShares Dynamic Large Cap 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 and PowerShares Dynamic Small Cap Value Portfolio (each, a "Style Fund") effective June 16, 2011. The Adviser also proposed revising each Style Fund's Expense Cap that is in place until August 31, 2012 to further reduce each Style Fund's annual operating expenses effective June 16, 2011. The Board considered the Adviser's representation that there would be no diminution in the quantity or quality of services provided to each Style Fund in connection with the amendment to the Investment Advisory Agreement to reflect the advisory fee changes. The Board concluded for each Style Fund that the reduced advisory fee was appropriate, and determined to approve the amended Investment Advisory Agreement and amended Expense Cap, effective June 16, 2011.

Economies of Scale and Whether Fee Levels Reflect These Economies of Scale. The Trustees reviewed the information provided by the Adviser as to the extent to which economies of scale are realized as each Fund grows and whether fee levels reflect economies of scale for the benefit of shareholders. The Trustees reviewed each Fund's asset size, expense ratio and expense limitation agreed to by the Adviser. The Trustees noted that, for Funds whose expenses are higher than their respective Expense Caps, any reduction in that Fund's expenses would be enjoyed by the Adviser, but that Fund shareholders benefit from the lower expense ratio as a result of the Fund's Expense Cap. The Trustees also noted that the Excess Expense Agreement with the Trust provides that the Adviser is entitled to be reimbursed by each Fund, other than PowerShares Dynamic Market Portfolio and PowerShares Dynamic OTC Portfolio, for fees waived or expenses absorbed pursuant to the Expense Cap for a period of three years from the date the fee or expense was incurred, provided that no reimbursement would be made that would result in a Fund exceeding its Expense Cap. The Trustees considered whether the advisory fee rate for each Fund was reasonable in relation to the asset size of that Fund, and concluded that the flat advisory fee was reasonable and appropriate, noting the Fund expenses the Adviser has borne as a result of the Expense Cap.

The Trustees noted that the Adviser had not identified any further benefits that it derived from its relationship with the Funds and had noted that it does not have any soft-dollar arrangements.

Based on all of the information considered and the conclusions reached, the Board, including the Independent Trustees, determined to approve the continuation of the Investment Advisory Agreement for each Fund. No single factor was determinative in the Board's analysis.

This page intentionally left blank

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) 983-0903. 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) 983-0903; or (ii) accessing the Trust's 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 Trust's Forms N-Q are available on the Commission's website at www.sec.gov. The Trust's Forms N-Q 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

2011 Annual Report to Shareholders

April 30, 2011

PowerShares Aerospace & Defense Portfolio (PPA)

PowerShares Cleantech^TM Portfolio (PZD)

PowerShares DWA Technical Leaders^TM Portfolio (PDP)

PowerShares Global Listed Private Equity Portfolio (PSP)

PowerShares Golden Dragon Halter USX China Portfolio (PGJ)

PowerShares Lux Nanotech Portfolio (PXN)

PowerShares Morningstar StockInvestor Core Portfolio (PYH)

PowerShares S&P 500 BuyWrite Portfolio (PBP)

PowerShares S&P 500^® High Quality Portfolio (PIV)

PowerShares Water Resources Portfolio (PHO)

PowerShares WilderHill Clean Energy Portfolio (PBW)

PowerShares WilderHill Progressive Energy Portfolio (PUW)

Table of Contents

The Market Environment					2

Manager's Analysis					4

Frequency Distribution of Discounts & Premiums					30

Fees and Expenses					32

Specialty Portfolios

Schedules of Investments

PowerShares Aerospace & Defense Portfolio (PPA)					34

PowerShares Cleantech^TM Portfolio (PZD)					35

PowerShares DWA Technical Leaders^TM Portfolio (PDP)					37

PowerShares Global Listed Private Equity Portfolio (PSP)					39

PowerShares Golden Dragon Halter USX China Portfolio (PGJ)					41

PowerShares Lux Nanotech Portfolio (PXN)					44

PowerShares Morningstar StockInvestor Core Portfolio (PYH)					45

PowerShares S&P 500 BuyWrite Portfolio (PBP)					47

PowerShares S&P 500^® High Quality Portfolio (PIV)					53

PowerShares Water Resources Portfolio (PHO)					55

PowerShares WilderHill Clean Energy Portfolio (PBW)					56

PowerShares WilderHill Progressive Energy Portfolio (PUW)					58

Statements of Assets and Liabilities					60

Statements of Operations					62

Statements of Changes in Net Assets					64

Financial Highlights					68

Notes to Financial Statements					74

Report of Independent Registered Public Accounting Firm					90

Tax Information					91

Trustees and Officers					92

Board Considerations Regarding Continuation of Investment Advisory Agreements					98

The Market Environment

For the fiscal year ended April 30, 2011, the market environment saw continued improvement. Global equities ended up 18.25% after declining the first two months of the period. Emerging markets led equities up during the fiscal year with the MSCI Emerging Markets Index returning 20.67%. Developed International and U.S. Equities followed closely behind emerging markets with the MSCI EAFE Index up 19.18% and the S&P 500^® Index up 17.24%. Volatility continued to decline on a year-over-year basis with the CBOE Volatility Index^® (VIX^®) dropping 33.11% for the fiscal year. Fixed income markets moved higher for the fiscal year with the Barclays Aggregate Bond Index ending up 5.37%.

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Manager's Analysis

PowerShares Aerospace & Defense Portfolio (ticker: PPA)

The PowerShares Aerospace & Defense Portfolio (the "Fund") seeks investment results that correspond (before fees and expenses) generally to the price and yield performance of the SPADE^® Defense Index (the "Index").

For the fiscal year ended April 30, 2011, the Fund returned 8.91%. Over this same year, the Index returned 7.79%, while the S&P SuperComposite Aerospace & Defense Index returned 11.60%. The Fund benefited from positive performance of securities of companies in industrials, information technology and materials sectors. Fund performance was positive for securities of companies within each sector in which it was invested.

Industry Breakdown (% of the Fund's

Net Assets) as of April 30, 2011

Aerospace/Defense	55.1
Miscellaneous Manufacturing	14.6
Computers	5.7
Telecommunications	5.2
Metal Fabricate/Hardware	5.1
Commercial Services	4.0
Electronics	3.7
Packaging & Containers	2.8
Engineering & Construction	1.6
Auto Manufacturers	1.4
Software	0.7
Money Market Fund	0.2
Liabilities in excess of other assets	(0.1	)

Style Allocation (% of the Fund's

Total Investments) as of April 30, 2011

Large-Cap Value					45.6
Mid-Cap Value					21.5
Mid-Cap Growth					12.3
Small-Cap Growth					8.7
Large-Cap Growth					7.2
Small-Cap Value					4.7

Top Ten Fund Holdings (% of the Fund's

Net Assets) as of April 30, 2011

*Security*
Boeing Co. (The)					7.3
United Technologies Corp.					7.2
Honeywell International, Inc.					7.0
Lockheed Martin Corp.					5.3
General Dynamics Corp.					5.2
Precision Castparts Corp.					4.7
Raytheon Co.					4.2
Northrop Grumman Corp.					4.1
Goodrich Corp.					4.1
Rockwell Collins, Inc.					3.9
Total					53.0

Manager's Analysis (Continued)

PowerShares Aerospace & Defense Portfolio (ticker: PPA)

Growth of a $10,000 Investment Since Inception^†

Fund Performance History (%) As of April 30, 2011

	Avg Ann^††									Fund Inception
	1 Year			3 Year			5 Year			Avg Ann^††			Cumulative
Index
SPADE^® Defense Index		7.79	%		-0.60	%		3.43	%		6.00	%		37.86	%
S&P SuperComposite Aerospace & Defense Index		11.60	%		1.84	%		6.13	%		9.75	%		66.79	%
Dow Jones US Aerospace and Defense Index		7.19	%		-1.36	%		3.55	%		7.18	%		46.42	%
S&P 500^® Index		17.24	%		1.74	%		2.95	%		4.41	%		26.81	%
Fund
Net Asset Value ("NAV") Return		8.91	%		0.49	%		4.22	%		6.76	%		43.42	%
Share Price Return		8.91	%		0.50	%		4.22	%		6.78	%		43.52	%

Fund Inception: October 26, 2005

Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2012. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.69%. In the Financial Highlights section of this Shareholder Report, the Fund's net total operating expense ratio was determined to be 0.66%, while the Fund's gross total expense ratio was determined to be 0.73%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.

The S&P SuperComposite Aerospace & Defense Index, Dow Jones US Aerospace and Defense Index and S&P 500^® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 54, 32 and 500 common stocks, respectively.

^† Fund and underlying Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on the closest month-end to the Fund's inception date.

^†† Average annualized.

Manager's Analysis

PowerShares Cleantech^TM Portfolio (ticker: PZD)

The PowerShares Cleantech^TM Portfolio (the "Fund") seeks investment results that correspond (before fees and expenses) generally to the price and yield performance of the Cleantech Index^TM (the "Index").

For the fiscal year ended April 30, 2011, the Fund returned 20.43%. Over this same year, the Index returned 19.39%, while the NASDAQ Composite Index returned 16.75% and the S&P 500^® Index returned 17.24%. The Fund benefited from positive performance of securities of companies in the United States and in the industrials and information technology sectors. The Fund suffered from negative performance of securities of companies in Belgium, Spain and China.

Industry Breakdown (% of the Fund's

Net Assets) as of April 30, 2011

Miscellaneous Manufacturing	18.2
Electrical Components & Equipment	13.6
Environmental Control	8.9
Electronics	8.8
Semiconductors	7.5
Engineering & Construction	6.4
Telecommunications	5.5
Software	4.6
Machinery-Diversified	4.2
Electric	3.7
Energy-Alternate Sources	3.6
Auto Parts & Equipment	3.6
Biotechnology	2.6
Commercial Services	2.5
Building Materials	1.7
Hand/Machine Tools	1.5
Healthcare-Services	1.2
Computers	0.9
Chemicals	0.5
Mining	0.5
Money Market Fund	0.0
Liabilities in excess of other assets	(0.0	)

Top Ten Fund Holdings (% of the Fund's

Net Assets) as of April 30, 2011

*Security*
ABB Ltd.					3.0
Siemens AG					2.8
Schneider Electric SA					2.7
Johnson Controls, Inc.					2.6
Novozymes A/S Class B					2.6
Corning, Inc.					2.5
SGS SA					2.5
Polycom, Inc.					2.5
Alfa Laval AB					2.3
Autodesk, Inc.					2.3
Total					25.8

Style Allocation (% of the Fund's

Total Investments) as of April 30, 2011

Mid-Cap Growth					32.4
Small-Cap Growth					26.2
Large-Cap Growth					16.9
Small-Cap Value					9.8
Mid-Cap Value					7.4
Large-Cap Value					7.3

Manager's Analysis (Continued)

PowerShares Cleantech^TM Portfolio (ticker: PZD)

Growth of a $10,000 Investment Since Inception^†

Fund Performance History (%) As of April 30, 2011

	Avg Ann^††						Fund Inception
	1 Year			3 Year			Avg Ann^††			Cumulative
Index
Cleantech Index(TM)		19.39	%		-4.06	%		4.28	%		20.84	%
NASDAQ Composite Index		16.75	%		6.00	%		4.41	%		21.42	%
S&P 500^® Index		17.24	%		1.74	%		1.94	%		9.01	%
Fund
Net Asset Value ("NAV") Return		20.43	%		-3.55	%		4.53	%		22.17	%
Share Price Return		21.32	%		-3.56	%		4.52	%		22.09	%

Fund Inception: October 24, 2006

Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2012. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.71%. In the Financial Highlights section of this Shareholder Report, the Fund's net total operating expense ratio was determined to be 0.67%, while the Fund's gross total expense ratio was determined to be 0.74%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.

The NASDAQ Composite Index and S&P 500^® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 100 and 500 common stocks, respectively.

^† Fund and underlying Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on the closest month-end to the Fund's inception date.

^†† Average annualized.

Manager's Analysis

PowerShares DWA Technical Leaders^TM Portfolio (ticker: PDP)

The PowerShares DWA Technical Leaders^TM Portfolio (the "Fund") seeks investment results that correspond (before fees and expenses) generally to the price and yield performance of the Dorsey Wright Technical Leaders^TM Index (the "Index").

For the fiscal year ended April 30, 2011, the Fund returned 25.11%. Over this same year, the Index returned 25.57%, while the S&P Citigroup Large Cap Growth Index returned 18.99%, the Russell 3000^® Growth Index returned 21.62% and the S&P 500^® Index returned 17.24%. The Fund benefited from positive performance of securities of companies in the consumer discretionary, industrials, and information technology sectors. The Fund suffered from negative performance of securities of companies in the health care sector.

Sector Breakdown (% of the Fund's

Net Assets) as of April 30, 2011

Consumer Discretionary	26.7
Industrials	25.3
Health Care	9.9
Information Technology	9.1
Materials	7.6
Financials	7.3
Energy	5.8
Consumer Staples	4.6
Utilities	3.7
Money Market Fund	0.1
Liabilities in excess of other assets	(0.1	)

Style Allocation (% of the Fund's

Total Investments) as of April 30, 2011

Mid-Cap Growth					46.3
Mid-Cap Value					27.9
Large-Cap Growth					11.4
Large-Cap Value					6.5
Small-Cap Value					5.7
Small-Cap Growth					2.2

Top Ten Fund Holdings (% of the Fund's

Net Assets) as of April 30, 2011

*Security*
Priceline.com, Inc.					3.2
Apple, Inc.					3.1
Liberty Media Corp. — Capital					3.1
TRW Automotive Holdings Corp.					2.7
J.B. Hunt Transport Services, Inc.					2.4
C.H. Robinson Worldwide, Inc.					2.2
Edwards Lifesciences Corp.					2.0
AMETEK, Inc.					1.9
Precision Castparts Corp.					1.7
Henry Schein, Inc.					1.7
Total					24.0

Manager's Analysis (Continued)

PowerShares DWA Technical Leaders^TM Portfolio (ticker: PDP)

Growth of a $10,000 Investment Since Inception^†

Fund Performance History (%) As of April 30, 2011

	Avg Ann^††						Fund Inception
	1 Year			3 Year			Avg Ann^††			Cumulative
Index
Dorsey Wright Technical Leaders(TM) Index		25.57	%		0.63	%		2.59	%		11.25	%
S&P Citigroup Large Cap Growth Index		18.99	%		3.89	%		4.04	%		17.96	%
Russell 3000^® Growth Index		21.62	%		4.95	%		4.60	%		20.59	%
S&P 500^® Index		17.24	%		1.74	%		1.41	%		6.00	%
Fund
Net Asset Value ("NAV") Return		25.11	%		1.10	%		2.79	%		12.15	%
Share Price Return		25.26	%		1.10	%		2.76	%		12.00	%

Fund Inception: March 1, 2007

Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2012. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.73%. In the Financial Highlights section of this Shareholder Report, the Fund's net total operating expense ratio was determined to be 0.70%, while the Fund's gross total expense ratio was determined to be 0.71%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.

The S&P Citigroup Large Cap Growth Index, Russell 3000^® Growth Index and S&P 500^® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 1,987, 1,887 and 500 common stocks, respectively.

^† Fund and underlying Index returns are based on the inception date of the Fund. Returns for the

Benchmark Indices are based on the closest month-end to the Fund's inception date.

^†† Average annualized.

Manager's Analysis

PowerShares Global Listed Private Equity Portfolio (ticker: PSP)

The PowerShares Global Listed Private Equity Portfolio (the "Fund") seeks investment results that correspond (before fees and expenses) generally to the price and yield performance of the Global Listed Private Equity Index^SM (the "Index").

For the fiscal year ended April 30, 2011, the Fund returned 27.93%. Over this same year, the Index returned 32.53%, while the S&P Financials Index returned 2.58%. The Fund benefited from positive performance of securities of companies in the United States, France, and the United Kingdom. The Fund suffered from negative performance of securities of companies in Japan, Finland, and Bermuda.

Industry Breakdown (% of the Fund's

Net Assets) as of April 30, 2011

Investment Companies					35.2
Private Equity					21.7
Holding Companies-Diversified					20.8
Equity Fund					9.8
Diversified Financial Services					6.4
Food					2.6
Electric					1.2
Water					1.0
Internet					0.4
Other assets less liabilities					0.9

Style Allocation (% of the Fund's

Total Investments) as of April 30, 2011

Mid-Cap Value					39.1
Small-Cap Value					30.1
Small-Cap Growth					15.7
Mid-Cap Growth					15.1

Top Ten Fund Holdings (% of the Fund's

Net Assets) as of April 30, 2011

*Security*
Leucadia National Corp.					5.0
Ratos AB					5.0
SPDR S&P 500 ETF Trust					4.9
Financial Select Sector SPDR Fund					4.9
Hal Trust					4.6
Wendel					4.1
3i Group PLC					4.1
Ares Capital Corp.					3.8
Partners Group Holding AG					3.7
Onex Corp.					3.5
Total					43.6

Manager's Analysis (Continued)

PowerShares Global Listed Private Equity Portfolio (ticker: PSP)

Growth of a $10,000 Investment Since Inception^†

Fund Performance History (%) As of April 30, 2011

	Avg Ann^††						Fund Inception
	1 Year			3 Year			Avg Ann^††			Cumulative
Index
Global Listed Private Equity Index^SM		32.53	%		-5.39	%		-6.84	%		-27.39	%
S&P Financials Index		2.58	%		-12.92	%		-13.72	%		-48.53	%
Fund
Net Asset Value ("NAV") Return		27.93	%		-10.97	%		-10.51	%		-39.44	%
Share Price Return		28.48	%		-10.79	%		-10.40	%		-39.09	%

Fund Inception: October 24, 2006

Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2012. According to the Fund's current prospectus, the total gross annual operating expense ratio of 2.97% includes estimated acquired fund fees and expenses of 2.25%. In the Financial Highlights section of this Shareholder Report, the Fund's net total operating expense ratio was determined to be 0.70%, while the Fund's gross total expense ratio was determined to be 0.73%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.

The S&P Financials Index (the "Benchmark Index") is an unmanaged index used as a measurement of change in stock market conditions based on the average performance of approximately 82 common stocks, respectively.

^† Fund and underlying Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on the closest month-end to the Fund's inception date.

^†† Average annualized.

Manager's Analysis

PowerShares Golden Dragon Halter USX China Portfolio (ticker: PGJ)

The PowerShares Golden Dragon Halter USX China Portfolio (the "Fund") seeks investment results that correspond (before fees and expenses) generally to the price and yield performance of the Halter USX China Index^SM (the "Index").

For the fiscal year ended April 30, 2011, the Fund returned 16.60%. Over this same year, the Index returned 17.84%, while the MSCI China Index returned 11.50%, the FTSE/Xinhua China Index returned 7.79% and the S&P 500^® Index returned 17.24%. The Fund benefited from positive performance of securities of companies in the energy, information technology, and telecommunication services sectors. The Fund did not suffer from negative performance of any securities of companies in any of the sectors in which it was invested.

Sector Breakdown (% of the Fund's

Net Assets) as of April 30, 2011

Information Technology					27.7
Energy					20.0
Telecommunication Services					13.8
Consumer Discretionary					10.9
Materials					7.5
Industrials					7.1
Financials					5.9
Health Care					3.0
Utilities					2.8
Consumer Staples					1.3
Other assets less liabilities					0.0

Style Allocation (% of the Fund's

Total Investments) as of April 30, 2011

Large-Cap Growth					34.4
Large-Cap Value					23.1
Mid-Cap Growth					15.2
Small-Cap Growth					15.2
Mid-Cap Value					9.6
Small-Cap Value					2.5

Top Ten Fund Holdings (% of the Fund's

Net Assets) as of April 30, 2011

*Security*
Baidu, Inc. ADR					6.3
PetroChina Co. Ltd. ADR					5.8
China Unicom Ltd. ADR					5.2
Yanzhou Coal Mining Co. Ltd. ADR					4.9
CNOOC Ltd. ADR					4.5
China Petroleum and Chemical Corp. ADR					4.3
China Mobile Ltd. ADR					4.3
Aluminum Corp. of China Ltd. ADR					4.3
China Life Insurance Co. Ltd. ADR					4.2
China Telecom Corp. Ltd. ADR					4.2
Total					48.0

Manager's Analysis (Continued)

PowerShares Golden Dragon Halter USX China Portfolio (ticker: PGJ)

Growth of a $10,000 Investment Since Inception^†

Fund Performance History (%) As of April 30, 2011

	Avg Ann^††									Fund Inception
	1 Year			3 Year			5 Year			Avg Ann^††			Cumulative
Index
Halter USX China Index^SM		17.84	%		1.44	%		13.13	%		13.13	%		119.93	%
MSCI China Index		11.50	%		-0.36	%		15.73	%		19.41	%		212.09	%
FTSE/Xinhua China 25 Index		7.79	%		-5.16	%		11.26	%		14.30	%		135.72	%
S&P 500^® Index		17.24	%		1.74	%		2.95	%		4.48	%		32.50	%
Fund
Net Asset Value ("NAV") Return		16.60	%		0.89	%		12.39	%		12.37	%		110.73	%
Share Price Return		16.11	%		0.82	%		12.26	%		12.26	%		109.35	%

Fund Inception: December 9, 2004

Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2012. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.71%. In the Financial Highlights section of this Shareholder Report, the Fund's net total operating expense ratio was determined to be 0.70%, while the Fund's gross total expense ratio was determined to be 0.72%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.

The MSCI China Index, FTSE/Xinhua China 25 Index and S&P 500^® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 140, 25 and 500 common stocks, respectively.

^† Fund and underlying Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on the closest month-end to the Fund's inception date.

^†† Average annualized.

Manager's Analysis

PowerShares Lux Nanotech Portfolio (ticker: PXN)

The PowerShares Lux Nanotech Portfolio (the "Fund") seeks investment results that correspond (before fees and expenses) generally to the price and yield performance of the Lux Nanotech Index^TM (the "Index").

For the fiscal year ended April 30, 2011, the Fund returned (7.07)%. Over this same year, the Index returned (6.83)%, while the S&P 500^® Index returned 17.24%. The Fund benefited from positive performance of securities of companies in semiconductors & semiconductors, software, and IT services industries. The Fund suffered negative performance of securities of companies in the electrical equipment, biotechnology, and life sciences tools & services industries.

Industry Breakdown (% of the Fund's

Net Assets) as of April 30, 2011

Pharmaceuticals	19.7
Electronics	11.1
Semiconductors	10.5
Chemicals	10.5
Electrical Components & Equipment	9.3
Miscellaneous Manufacturing	7.3
Computers	7.0
Investment Companies	6.4
Biotechnology	6.0
Software	4.5
Energy-Alternate Sources	4.3
Auto Manufacturers	3.4
Money Market Fund	0.2
Liabilities in excess of other assets	(0.2	)

Style Allocation (% of the Fund's

Total Investments) as of April 30, 2011

Small-Cap Growth					56.1
Large-Cap Value					18.0
Large-Cap Growth					11.1
Mid-Cap Growth					7.6
Small-Cap Value					7.2

Top Ten Fund Holdings (% of the Fund's

Net Assets) as of April 30, 2011

*Security*
Elan Corp. PLC ADR					7.7
BioDelivery Sciences International, Inc.					7.2
NVE Corp.					6.7
Veeco Instruments, Inc.					6.6
Harris & Harris Group, Inc.					6.4
Nanosphere, Inc.					6.0
Ener1, Inc.					5.4
Flamel Technologies SA ADR					4.8
Accelrys, Inc.					4.5
FEI Co.					4.4
Total					59.7

Manager's Analysis (Continued)

PowerShares Lux Nanotech Portfolio (ticker: PXN)

Growth of a $10,000 Investment Since Inception^†

Fund Performance History (%) As of April 30, 2011

	Avg Ann^††									Fund Inception
	1 Year			3 Year			5 Year			Avg Ann^††			Cumulative
Index
Lux Nanotech Index(TM)		-6.83	%		-11.93	%		-13.09	%		-8.36	%		-38.19	%
S&P 500^® Index		17.24	%		1.74	%		2.95	%		4.41	%		26.81	%
Fund
Net Asset Value ("NAV") Return		-7.07	%		-11.90	%		-12.77	%		-8.02	%		-36.90	%
Share Price Return		-6.01	%		-11.49	%		-12.62	%		-7.86	%		-36.29	%

Fund Inception: October 26, 2005

Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2012. According to the Fund's current prospectus, the total gross annual operating expense ratio of 1.20% includes estimated acquired fund fees and expenses of 0.35%. In the Financial Highlights section of this Shareholder Report, the Fund's net total operating expense ratio was determined to be 0.70%, while the Fund's gross total expense ratio was determined to be 0.95%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.

The S&P 500^® Index (the "Benchmark Index") is an unmanaged index used as a measurement of change in stock market conditions based on the average performance of approximately 500 common stocks, respectively.

^† Fund and underlying Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on the closest month-end to the Fund's inception date.

^†† Average annualized.

Manager's Analysis

PowerShares Morningstar StockInvestor Core Portfolio (ticker: PYH)

The PowerShares Morningstar StockInvestor Core Portfolio (the "Fund") seeks investment results that correspond (before fees and expenses) generally to the price and yield performance of the Morningstar^® StockInvestor Core Index (the "Index"). The Fund will normally invest at least 90% of its total assets in common stocks that comprise the Index.

Effective June 30, 2010, the name of the PowerShares Value Line Industry Rotation Portfolio changed to PowerShares Morningstar StockInvestor Core Portfolio. Its underlying index also changed to the Morningstar^® StockInvestor Core Index. Prior to June 30, 2010, the Fund's underlying index was the Value Line Industry Rotation Index.

For the fiscal year ended April 30, 2011, the Fund returned 9.25%. Over this same year, the Blended-Index returned 12.77%, while the S&P Citigroup Large Cap Growth Index returned 18.99%, the Russell 3000^® Growth Index returned 21.62% and the S&P 500^® Index returned 17.24%. The Fund benefited from positive performance of securities of companies in the information technology, financials, and consumer staples sectors. The Fund suffered from negative performance of securities of companies in the consumer discretionary sector.

Manager's Analysis (Continued)

PowerShares Morningstar StockInvestor Core Portfolio (ticker: PYH)

Industry Breakdown (% of the Fund's

Net Assets) as of April 30, 2011

Commercial Services	14.3
Retail	9.8
Pharmaceuticals	9.2
Real Estate	7.0
Mining	6.4
Insurance	4.9
Diversified Financial Services	4.7
Healthcare-Products	4.3
Electric	4.0
Software	3.9
Pipelines	3.4
Oil & Gas	3.3
Entertainment	3.1
Internet	2.9
Beverages	2.2
Coal	2.1
Aerospace/Defense	2.1
Banks	1.8
Food	1.7
Textiles	1.6
Cosmetics/Personal Care	1.2
Miscellaneous Manufacturing	1.2
Telecommunications	1.1
Biotechnology	1.1
Building Materials	0.9
Distribution/Wholesale	0.9
Computers	0.8
Money Market Fund	0.4
Liabilities in excess of other assets	(0.3	)

Top Ten Fund Holdings (% of the Fund's

Net Assets) as of April 30, 2011

*Security*
St. Joe (The) Co.					7.0
Compass Minerals International, Inc.					5.0
Exelon Corp.					4.0
Abbott Laboratories					3.8
Berkshire Hathaway, Inc. Class B					3.7
MasterCard, Inc. Class A					3.5
Lowe's Cos., Inc.					3.4
Exxon Mobil Corp.					3.3
Discover Financial Services					3.2
CarMax, Inc.					3.1
Total					40.0

Style Allocation (% of the Fund's

Total Investments) as of April 30, 2011

Large-Cap Growth					33.0
Large-Cap Value					29.5
Mid-Cap Growth					21.7
Mid-Cap Value					10.3
Small-Cap Value					4.3
Small-Cap Growth					1.2

Manager's Analysis (Continued)

PowerShares Morningstar StockInvestor Core Portfolio (ticker: PYH)

Growth of a $10,000 Investment Since Inception^†

Fund Performance History (%) As of April 30, 2011

	Avg Ann^††						Fund Inception
	1 Year			3 Year			Avg Ann^††			Cumulative
Index
Blended – Morningstar StockInvestor Core Index*		12.77	%		-6.38	%		-2.14	%		-9.08	%
Morningstar^® StockInvestor Core Index		N/A			N/A			N/A			N/A
Value Line Industry Rotation Index		16.84	%		-5.27	%		-1.34	%		-5.80	%
S&P Citigroup Large Cap Growth Index		18.99	%		3.89	%		3.66	%		17.21	%
Russell 3000^® Growth Index		21.62	%		4.95	%		4.57	%		21.80	%
S&P 500^® Index		17.24	%		1.74	%		1.54	%		6.98	%
Fund
Net Asset Value ("NAV") Return		9.25	%		-7.07	%		-2.61	%		-11.03	%
Share Price Return		9.20	%		-7.06	%		-2.62	%		-11.07	%

Fund Inception: December 1, 2006

Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2012. According to the Fund's current prospectus, the total gross annual operating expense ratio of 1.11% includes estimated acquired fund fees and expenses of 0.02%. In the Financial Highlights section of this Shareholder Report, the Fund's net total operating expense ratio was determined to be 0.53%, while the Fund's gross total expense ratio was determined to be 1.81%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.

The S&P Citigroup Large Cap Growth Index, Russell 3000^® Growth Index and S&P 500^® Index (the "Benchmark Indices") are unmanaged indices used as a measurement change in stock market conditions based on the average performance of approximately 1,987, 1,887 and 500 common stocks, respectively.

^† Fund and underlying Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on the closest month-end to the Fund's inception date.

^†† Average annualized.

* The data known as "Blended" is comprised of the original underlying index from Fund inception through the conversion date, June 29, 2010, followed by the performance of the new underlying index starting at the conversion date and through April 30, 2011.

This page intentionally left blank

Manager's Analysis

PowerShares S&P 500 BuyWrite Portfolio (ticker: PBP)

The PowerShares S&P 500 BuyWrite Portfolio (the "Fund") seeks investment results that correspond (before fees and expenses) generally to the price and yield performance of the CBOE S&P 500 BuyWrite Index (the "Index").

For the fiscal year ended April, 30 2011, the Fund returned 7.87%. Over this same year, the Index returned 8.80%, while the S&P 500^® Index returned 17.24%. The Fund slightly underperformed the Index due to the relatively wide option bid-ask spreads which prevailed during monthly rebalance periods. Additionally, the steady upward trend of the S&P 500^® Index combined with volatility, contributed to the Fund's underperformance of the S&P 500^® Index.

Sector Breakdown (% of the Fund's

Net Assets) as of April 30, 2011

Information Technology	18.7
Financials	16.0
Energy	13.5
Health Care	11.7
Industrials	11.6
Consumer Discretionary	11.0
Consumer Staples	10.8
Materials	3.8
Utilities	3.3
Telecommunication Services	3.1
Liabilities in excess of other assets	(3.5	)

Style Allocation (% of the Fund's

Total Investments) as of April 30, 2011

Large-Cap Value					42.6
Large-Cap Growth					42.6
Mid-Cap Growth					8.6
Mid-Cap Value					6.1
Small-Cap Growth					0.1

Top Ten Fund Holdings (% of the Fund's

Net Assets) as of April 30, 2011

*Security*
Exxon Mobil Corp.					3.7
Apple, Inc.					2.7
Chevron Corp.					1.8
General Electric Co.					1.8
International Business Machines Corp.					1.7
Microsoft Corp.					1.6
AT&T, Inc.					1.5
Procter & Gamble (The) Co.					1.5
JPMorgan Chase & Co.					1.5
Johnson & Johnson					1.5
Total					19.3

Manager's Analysis (Continued)

PowerShares S&P 500 BuyWrite Portfolio (ticker: PBP)

Growth of a $10,000 Investment Since Inception^†

Fund Performance History (%) As of April 30, 2011

	Avg Ann^††						Fund Inception
	1 Year			3 Year			Avg Ann^††			Cumulative
Index
CBOE S&P 500 BuyWrite Index		8.80	%		-0.10	%		-0.31	%		-1.03	%
S&P 500^® Index		17.24	%		1.74	%		0.00	%		0.01	%
Fund
Net Asset Value ("NAV") Return		7.87	%		-1.24	%		-1.16	%		-3.86	%
Share Price Return		7.86	%		-1.29	%		-1.16	%		-3.86	%

Fund Inception: December 20, 2007

^† Fund and underlying Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on the closest month-end to the Fund's inception date.

^†† Average annualized.

Manager's Analysis

PowerShares S&P 500^®High Quality Portfolio (ticker: PIV)

The PowerShares S&P 500^® High Quality Portfolio (the "Fund") seeks investment results that correspond (before fees and expenses) generally to the price and yield performance of the S&P 500^® High Quality Rankings Index (the "Index"). The Fund will normally invest at least 90% of its total assets in common stocks that comprise the Index.

Effective June 30, 2010, the name of the PowerShares Value Line Timeliness^TM Select Portfolio changed to PowerShares S&P 500^® High Quality Portfolio. Its underlying index also changed to the S&P 500^® High Quality Rankings Index. Prior to June 30, 2010, the Fund's underlying index was the Value Line Timeliness Select Index.

For the fiscal year ended April 30, 2011, the Fund returned 20.61%. Over this same year, the Blended-Index returned 20.64%, while the S&P 500 Citigroup Large Cap Growth Index returned 18.99%, the Russell 3000^® Growth Index returned 21.62% and the S&P 500^® Index returned 17.24%. The Fund benefited from positive performance of securities of companies in the industrials, consumer staples, and financials sectors. The Fund suffered from negative performance of securities of companies in the information technology and telecommunication services sectors.

Sector Breakdown (% of the Fund's

Net Assets) as of April 30, 2011

Consumer Staples	23.5
Industrials	20.6
Consumer Discretionary	18.7
Health Care	10.0
Financials	8.7
Materials	6.8
Information Technology	4.7
Utilities	4.3
Energy	2.6
Money Market Fund	0.1
Liabilities in excess of other assets	(0.0	)

Style Allocation (% of the Fund's

Total Investments) as of April 30, 2011

Large-Cap Growth					37.2
Large-Cap Value					30.4
Mid-Cap Growth					16.8
Mid-Cap Value					15.6

Top Ten Fund Holdings (% of the Fund's

Net Assets) as of April 30, 2011

*Security*
UnitedHealth Group, Inc.					1.4
Johnson & Johnson					1.4
Sigma-Aldrich Corp.					1.4
C.H. Robinson Worldwide, Inc.					1.3
Expeditors International of Washington, Inc.					1.3
Danaher Corp.					1.3
NIKE, Inc. Class B					1.3
Kellogg Co.					1.3
Hormel Foods Corp.					1.3
W.W. Grainger, Inc.					1.3
Total					13.3

Manager's Analysis (Continued)

PowerShares S&P 500^® High Quality Portfolio (ticker: PIV)

Growth of a $10,000 Investment Since Inception^†

Fund Performance History (%) As of April 30, 2011

	Avg Ann^††									Fund Inception
	1 Year			3 Year			5 Year			Avg Ann^††			Cumulative
Index
Blended – S&P 500 High Quality Rankings Index*		20.64	%		-4.26	%		-3.00	%		-1.03	%		-5.44	%
S&P 500^® High Quality Rankings Index		N/A			N/A			N/A			N/A			N/A
Value Line Timeliness^TM Select Index		30.43	%		-1.74	%		-1.47	%		0.41	%		2.24	%
S&P 500 Citigroup Large Cap Growth Index		18.99	%		3.89	%		4.80	%		4.87	%		29.37	%
Russell 3000^® Growth Index		21.62	%		4.95	%		5.05	%		5.34	%		32.54	%
S&P 500^® Index		17.24	%		1.74	%		2.95	%		3.77	%		22.19	%
Fund
Net Asset Value ("NAV") Return		20.61	%		-4.07	%		-2.84	%		-0.88	%		-4.68	%
Share Price Return		20.61	%		-4.05	%		-2.87	%		-0.97	%		-5.10	%

Fund Inception: December 6, 2005

Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2012. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.80%. In the Financial Highlights section of this Shareholder Report, the Fund's net total operating expense ratio was determined to be 0.52%, while the Fund's gross total expense ratio was determined to be 0.84%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.

The S&P 500 Citigroup Large Cap Growth Index, Russell 3000^® Growth Index and S&P 500^® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 1,987, 1,887 and 500 common stocks, respectively.

^† Fund and underlying Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on the closest month-end to the Fund's inception date.

^†† Average annualized.

Manager's Analysis

PowerShares Water Resources Portfolio (ticker: PHO)

The PowerShares Water Resources Portfolio (the "Fund") seeks investment results that correspond (before fees and expenses) generally to the price and yield performance of the Palisades Water Index (the "Index").

For the fiscal year ended April 30, 2011, the Fund returned 12.81%. Over this same year, the Index returned 13.82%, while the ISE Water Index returned 16.27% and the S&P 500^® Index returned 17.24%. The Fund benefited from positive performance of securities of companies in the industrials sector.

Industry Breakdown (% of the Fund's

Net Assets) as of April 30, 2011

Machinery-Diversified	17.8
Miscellaneous Manufacturing	17.3
Engineering & Construction	15.0
Water	13.5
Environmental Control	12.4
Electronics	11.1
Metal Fabricate/Hardware	9.6
Hand/Machine Tools	3.3
Money Market Fund	0.0
Liabilities in excess of other assets	(0.0	)

Style Allocation (% of the Fund's

Total Investments) as of April 30, 2011

Small-Cap Growth					38.0
Mid-Cap Growth					28.7
Mid-Cap Value					10.7
Small-Cap Value					10.2
Large-Cap Value					8.1
Large-Cap Growth					4.3

Top Ten Fund Holdings (% of the Fund's

Net Assets) as of April 30, 2011

*Security*
Veolia Environnement SA ADR					5.0
Valmont Industries, Inc.					4.8
Aecom Technology Corp.					4.6
URS Corp.					4.4
Lindsay Corp.					4.3
Tetra Tech, Inc.					4.3
Danaher Corp.					4.3
Itron, Inc.					4.1
Badger Meter, Inc.					3.8
Calgon Carbon Corp.					3.6
Total					43.2

Manager's Analysis (Continued)

PowerShares Water Resources Portfolio (ticker: PHO)

Growth of a $10,000 Investment Since Inception^†

Fund Performance History (%) As of April 30, 2011

	Avg Ann^††									Fund Inception
	1 Year			3 Year			5 Year			Avg Ann^††			Cumulative
Index
Palisades Water Index		13.82	%		0.98	%		4.38	%		7.55	%		48.09	%
ISE Water Index		16.27	%		2.12	%		4.91	%		8.76	%		57.58	%
S&P 500^® Index		17.24	%		1.74	%		2.95	%		3.77	%		22.19	%
Fund
Net Asset Value ("NAV") Return		12.81	%		-0.11	%		2.73	%		5.94	%		36.56	%
Share Price Return		12.75	%		-0.01	%		2.65	%		5.72	%		35.00	%

Fund Inception: December 6, 2005

Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2012. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.64%. In the Financial Highlights section of this Shareholder Report, the Fund's net total operating expense ratio and the Fund's gross total expense ratio was determined to be 0.66%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.

The ISE Water Index and S&P 500^® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 37 and 500 common stocks, respectively.

^† Fund and underlying Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on the closest month-end to the Fund's inception date.

^†† Average annualized.

Manager's Analysis

PowerShares WilderHill Clean Energy Portfolio (ticker: PBW)

The PowerShares WilderHill Clean Energy Portfolio (the "Fund") seeks investment results that correspond (before fees and expenses) generally to the price and yield performance of the WilderHill Clean Energy Index (the "Index").

For the fiscal year ended April 30, 2011, the Fund returned 2.27%. Over this same year, the Index returned 2.67%, while the NASDAQ Composite Index returned 16.75% and the S&P 500^®Index returned 17.24%. The Fund benefited from positive performance of securities of companies in China and the information technology and materials sectors. The Fund suffered from negative performance of securities of companies in the U.S. and the industrials sector.

Industry Breakdown (% of the Fund's

Net Assets) as of April 30, 2011

Electrical Components & Equipment	24.5
Semiconductors	16.4
Energy-Alternate Sources	12.8
Electric	10.4
Chemicals	8.2
Mining	5.0
Auto Parts & Equipment	4.7
Computers	4.2
Miscellaneous Manufacturing	4.1
Electronics	2.6
Auto Manufacturers	2.4
Commercial Services	2.0
Food	1.7
Building Materials	0.6
Metal Fabricate/Hardware	0.4
Money Market Fund	0.1
Liabilities in excess of other assets	(0.1	)

Style Allocation (% of the Fund's

Total Investments) as of April 30, 2011

Small-Cap Growth					57.8
Mid-Cap Growth					21.4
Mid-Cap Value					6.7
Small-Cap Value					6.4
Large-Cap Growth					4.0
Large-Cap Value					3.7

Top Ten Fund Holdings (% of the Fund's

Net Assets) as of April 30, 2011

*Security*
SunPower Corp. Class A					2.7
Molycorp, Inc.					2.7
Ameresco, Inc. Class A					2.5
Tesla Motors, Inc.					2.4
Rare Element Resources Ltd.					2.4
Amerigon, Inc.					2.3
Fuel Systems Solutions, Inc.					2.3
Sociedad Quimica y Minera de Chile SA					2.3
Rubicon Technology, Inc.					2.2
Polypore International, Inc.					2.2
Total					24.0

Manager's Analysis (Continued)

PowerShares WilderHill Clean Energy Portfolio (ticker: PBW)

Growth of a $10,000 Investment Since Inception^†

Fund Performance History (%) As of April 30, 2011

	Avg Ann^††									Fund Inception
	1 Year			3 Year			5 Year			Avg Ann^††			Cumulative
Index
WilderHill Clean Energy Index		2.67	%		-21.49	%		-15.18	%		-7.19	%		-36.83	%
NASDAQ Composite Index		16.75	%		6.00	%		4.35	%		5.61	%		40.06	%
S&P 500^® Index		17.24	%		1.74	%		2.95	%		4.17	%		28.64	%
Fund
Net Asset Value ("NAV") Return		2.27	%		-20.93	%		-14.25	%		-6.41	%		-33.52	%
Share Price Return		2.18	%		-20.99	%		-14.29	%		-6.43	%		-33.61	%

Fund Inception: March 3, 2005

Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2012. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.70%. In the Financial Highlights section of this Shareholder Report, the Fund's net total operating expense ratio was determined to be 0.70%, while the Fund's gross total expense ratio was determined to be 0.73%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.

^† Fund and underlying Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on the closest month-end to the Fund's inception date.

^†† Average annualized.

Manager's Analysis

PowerShares WilderHill Progressive Energy Portfolio (ticker: PUW)

The PowerShares WilderHill Progressive Energy Portfolio (the "Fund") seeks investment results that correspond (before fees and expenses) generally to the price and yield performance of the WilderHill Progressive Energy Index (the "Index").

For the fiscal year ended April 30, 2011, the Fund returned 22.47%. Over this same year, the Index returned 22.60%, while the NASDAQ Composite Index returned 16.75% and the S&P 500^® Index returned 17.24%. The Fund benefited from positive performance of securities of companies in the United States and the industrials and energy sectors. The Fund suffered from negative performance of securities of companies in China.

Industry Breakdown (% of the Fund's

Net Assets) as of April 30, 2011

Miscellaneous Manufacturing	15.0
Electrical Components & Equipment	13.6
Auto Parts & Equipment	8.6
Oil & Gas	8.0
Electric	7.9
Electronics	7.3
Engineering & Construction	5.9
Mining	5.6
Chemicals	4.4
Energy-Alternate Sources	4.4
Environmental Control	2.6
Machinery-Diversified	2.2
Building Materials	2.2
Agriculture	2.1
Semiconductors	2.1
Computers	2.1
Hand/Machine Tools	2.1
Auto Manufacturers	2.0
Telecommunications	1.9
Money Market Fund	0.1
Liabilities in excess of other assets	(0.1	)

Top Ten Fund Holdings (% of the Fund's

Net Assets) as of April 30, 2011

*Security*
Westport Innovations, Inc.					2.6
Rockwood Holdings, Inc.					2.4
Clean Energy Fuels Corp.					2.3
GrafTech International Ltd.					2.3
Hexcel Corp.					2.3
Altra Holdings, Inc.					2.3
General Cable Corp.					2.2
Siemens AG					2.2
Owens Corning					2.2
Energizer Holdings, Inc.					2.2
Total					23.0

Style Allocation (% of the Fund's

Total Investments) as of April 30, 2011

Small-Cap Growth					35.0
Small-Cap Value					16.4
Large-Cap Growth					16.0
Large-Cap Value					12.1
Mid-Cap Growth					10.3
Mid-Cap Value					10.2

Manager's Analysis (Continued)

PowerShares WilderHill Progressive Energy Portfolio (ticker: PUW)

Growth of a $10,000 Investment Since Inception^†

Fund Performance History (%) As of April 30, 2011

	Avg Ann^††						Fund Inception
	1 Year			3 Year			Avg Ann^††			Cumulative
Index
WilderHill Progressive Energy Index		22.60	%		2.99	%		4.83	%		23.73	%
NASDAQ Composite Index		16.75	%		6.00	%		4.41	%		21.42	%
S&P 500^® Index		17.24	%		1.74	%		1.94	%		9.01	%
Fund
Net Asset Value ("NAV") Return		22.47	%		3.36	%		5.21	%		25.79	%
Share Price Return		22.55	%		3.42	%		5.24	%		25.92	%

Fund Inception: October 24, 2006

Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2012. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.84%. In the Financial Highlights section of this Shareholder Report, the Fund's net total operating expense ratio was determined to be 0.70%, while the Fund's gross total expense ratio was determined to be 0.86%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.

^† Fund and underlying Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on the closest month-end to the Fund's inception date.

^†† Average annualized.

Frequency Distribution of Discounts & Premiums

Since Inception through April 30, 2011

					Closing Price Above NAV (bps)
Ticker	Fund Name	Inception	Trading Days		0-24		25-49		50-99		100-149		150-199		200+
PPA	PowerShares Aerospace & Defense Portfolio	10/26/05		1387		467		16		2		1		0		3
PZD	PowerShares Cleantech^TM Portfolio	10/24/06		1137		254		95		93		24		4		3
PDP	PowerShares DWA Technical Leaders^TMPortfolio	3/1/07		1051		434		15		8		0		0		0
PSP	PowerShares Global Listed Private Equity Portfolio	10/24/06		1137		332		139		174		35		11		7
PGJ	PowerShares Golden Dragon Halter USX China Portfolio	12/9/04		1609		608		140		23		2		0		0
PXN	PowerShares Lux Nanotech Portfolio	10/26/05		1387		422		77		35		5		1		1
PYH	PowerShares Morningstar StockInvestor Core Portfolio	12/1/06		1110		376		12		6		3		0		1
PBP	PowerShares S&P 500 BuyWrite Portfolio	12/20/07		845		298		110		85		20		10		14
PIV	PowerShares S&P 500^® High Quality Portfolio	12/6/05		1359		483		34		5		2		2		1
PHO	PowerShares Water Resources Portfolio	12/6/05		1359		494		99		20		1		0		0
PBW	PowerShares WilderHill Clean Energy Portfolio	3/3/05		1552		589		129		26		7		0		0
PUW	PowerShares WilderHill Progressive Energy Portfolio	10/24/06		1137		396		23		6		0		0		0

	Closing Price Below NAV (bps)
Ticker	-0-24		-25-49		-50-99		-100-149		-150-199		-200+
PPA		873		15		9		0		0		1
PZD		436		135		76		13		1		3
PDP		562		24		8		0		0		0
PSP		338		51		38		13		0		0
PGJ		730		87		14		4		0		1
PXN		727		97		17		3		1		1
PYH		693		16		3		0		0		0
PBP		287		11		8		0		1		1
PIV		814		13		3		0		1		1
PHO		692		39		13		1		0		0
PBW		684		99		14		2		1		1
PUW		687		22		3		0		0		0

Fees and Expenses

As a shareholder of a Fund of the PowerShares Exchange-Traded Fund Trust, you incur advisory fees and other Fund expenses fee. 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 April 30, 2011.

In pursuing their investment objective, PowerShares Global Listed Private Equity Portfolio, PowerShares Lux Nanotech Portfolio and PowerShares Morningstar StockInvestor Core Portfolio (the "Portfolios") may invest a portion of their assets in investment companies. Each Portfolio indirectly bears a pro rata share of the fees and expenses of the investment companies in which each Portfolio invests. The effect of such expenses are included in each Portfolio's total return.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value November 1, 2010		Ending Account Value April 30, 2011		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During the Six-Month Period ⁽¹⁾
PowerShares Aerospace & Defense Portfolio Actual	$	1,000.00	$	1,145.65		0.66	%	$	3.51
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.52		0.66	%	$	3.31
PowerShares Cleantech^TM Portfolio Actual	$	1,000.00	$	1,213.72		0.67	%	$	3.68
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.47		0.67	%	$	3.36
PowerShares DWA Technical Leaders^TM Portfolio Actual	$	1,000.00	$	1,203.56		0.70	%	$	3.82
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.32		0.70	%	$	3.51

Fees and Expenses (Continued)

	Beginning Account Value November 1, 2010		Ending Account Value April 30, 2011		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During the Six-Month Period ⁽¹⁾
PowerShares Global Listed Private Equity Portfolio Actual	$	1,000.00	$	1,206.14		0.70	%	$	3.83
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.32		0.70	%	$	3.51
PowerShares Golden Dragon Halter USX China Portfolio Actual	$	1,000.00	$	1,050.64		0.70	%	$	3.56
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.32		0.70	%	$	3.51
PowerShares Lux Nanotech Portfolio Actual	$	1,000.00	$	1,026.74		0.70	%	$	3.52
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.32		0.70	%	$	3.51
PowerShares Morningstar^® StockInvestor^SM Core Portfolio Actual	$	1,000.00	$	1,165.14		0.50	%	$	2.68
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.32		0.50	%	$	2.51
PowerShares S&P 500 BuyWrite Portfolio Actual	$	1,000.00	$	1,078.15		0.75	%	$	3.86
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.08		0.75	%	$	3.76
PowerShares S&P 500^® High Quality Portfolio Actual	$	1,000.00	$	1,155.95		0.50	%	$	2.67
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.32		0.50	%	$	2.51
PowerShares Water Resource Portfolio Actual	$	1,000.00	$	1,171.08		0.66	%	$	3.55
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.52		0.66	%	$	3.31
PowerShares WilderHill Clean Energy Portfolio Actual	$	1,000.00	$	1,031.91		0.70	%	$	3.53
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.32		0.70	%	$	3.51
PowerShares WilderHill Progressive Energy Portfolio Actual	$	1,000.00	$	1,214.25		0.70	%	$	3.84
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.32		0.70	%	$	3.51

(1) Expenses are calculated using the annualized expense ratio, which represents the ongoing expenses as a percentage of net assets for the six-month period ended April 30, 2011. Expenses are calculated by multiplying the Fund's annualized expense ratio by the average account value for the period; then multiplying the result by 181 and then dividing the result by 365. Expense ratios for the most recent six-month period may differ from expense ratios based on the one year data in the Financial Highlights.

Schedule of Investments

PowerShares Aerospace & Defense Portfolio

April 30, 2011

Number of Shares			Value
		Common Stocks—99.9%
		Aerospace/Defense—55.1%
	18,917	AAR Corp.	$	492,599
	10,422	Aerovironment, Inc.*		298,590
	16,047	Alliant Techsystems, Inc.		1,133,720
	98,229	Boeing Co. (The)		7,836,710
	12,726	Cubic Corp.		688,222
	5,001	Ducommun, Inc.		113,773
	20,460	Elbit Systems Ltd. (Israel)		1,146,169
	14,605	Esterline Technologies Corp.*		1,048,639
	27,860	GenCorp, Inc.*		181,926
	77,821	General Dynamics Corp.		5,666,925
	50,008	Goodrich Corp.		4,419,207
	11,273	Kratos Defense & Security Solutions, Inc.*		154,102
	51,878	L-3 Communications Holdings, Inc.		4,160,097
	5,616	LMI Aerospace, Inc.*		112,601
	72,895	Lockheed Martin Corp.		5,776,929
	21,657	Moog, Inc., Class A*		955,507
	70,151	Northrop Grumman Corp.		4,462,305
	27,761	Orbital Sciences Corp.*		522,740
	94,019	Raytheon Co.		4,564,622
	66,790	Rockwell Collins, Inc.		4,214,449
	17,441	Teledyne Technologies, Inc.*		880,596
	23,768	TransDigm Group, Inc.*		1,979,874
	11,617	Triumph Group, Inc.		1,000,456
	86,260	United Technologies Corp.		7,727,171
				59,537,929
		Auto Manufacturers—1.4%
	33,600	Force Protection, Inc.*		150,864
	43,420	Oshkosh Corp.*		1,374,677
				1,525,541
		Commercial Services—4.0%
	67,165	Booz Allen Hamilton Holding Corp.*		1,298,971
	171,136	SAIC, Inc.*		2,977,766
				4,276,737
		Computers—5.7%
	14,477	CACI International, Inc., Class A*		884,690
	74,184	Computer Sciences Corp.		3,781,900
	8,409	Integral Systems, Inc.*		105,028
	12,014	Keyw Holding Corp. (The)*		134,437
	13,366	Mercury Computer Systems, Inc.*		258,097
	6,509	NCI, Inc., Class A*		160,187
	27,283	SRA International, Inc., Class A*		845,500
				6,169,839
		Electronics—3.7%
	4,325	American Science & Engineering, Inc.		381,033
	76,327	FLIR Systems, Inc.		2,688,237
	42,995	L-1 Identity Solutions, Inc.*		504,331
	9,014	OSI Systems, Inc.*		346,048
	29,814	Taser International, Inc.*		132,970
				4,052,619

Number of Shares			Value
		Common Stocks (Continued)
		Engineering & Construction—1.6%
	38,602	URS Corp.*	$	1,727,440
		Metal Fabricate/Hardware—5.1%
	7,482	Ladish Co., Inc.*		424,229
	32,645	Precision Castparts Corp.		5,044,306
				5,468,535
		Miscellaneous Manufacturing—14.6%
	11,820	Ceradyne, Inc.*		553,885
	123,416	Honeywell International, Inc.		7,556,761
	72,915	ITT Corp.		4,213,758
	132,067	Textron, Inc.		3,446,949
				15,771,353
		Packaging & Containers—2.8%
	80,936	Ball Corp.		3,019,722
		Software—0.7%
	17,374	ManTech International Corp., Class A*		762,545
		Telecommunications—5.2%
	12,708	Comtech Telecommunications Corp.		359,636
	21,885	DigitalGlobe, Inc.*		634,665
	7,296	EMS Technologies, Inc.*		184,297
	10,524	GeoEye, Inc.*		390,335
	61,231	Harris Corp.		3,253,203
	19,806	ViaSat, Inc.*		790,656
				5,612,792
		Total Common Stocks (Cost $117,475,986)		107,925,052
		Money Market Fund—0.2%
	185,902	Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $185,902)		185,902
		Total Investments (Cost $117,661,888)—100.1%		108,110,954
		Liabilities in excess of other assets—(0.1%)		(139,703	)
		Net Assets—100.0%	$	107,971,251

Notes to Schedule of Investments:

* Non-income producing security.

See Notes to Financial Statements.

Schedule of Investments

PowerShares Cleantech^TM Portfolio

April 30, 2011

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Auto Parts & Equipment—3.6%
	32,002	Fuel Systems Solutions, Inc.*	$	951,260
	101,728	Johnson Controls, Inc.		4,170,848
	26,547	Westport Innovations, Inc. (Canada)*		669,515
				5,791,623
		Biotechnology—2.6%
	24,062	Novozymes A/S, Class B (Denmark)		4,164,591
		Building Materials—1.7%
	212,804	Kingspan Group PLC (Ireland)*		2,083,726
	28,039	WaterFurnace Renewable Energy, Inc. (Canada)		685,572
				2,769,298
		Chemicals—0.5%
	1,101	Gurit Holding AG (Switzerland)*		854,481
		Commercial Services—2.5%
	2,031	SGS SA (Switzerland)		4,015,461
		Computers—0.9%
	46,724	Telvent GIT SA (Spain)*		1,438,632
		Electric—3.7%
	57,610	Ameresco, Inc., Class A*		928,097
	18,991,700	Energy Development Corp. (Philippines)		2,994,487
	38,421	EnerNOC, Inc.*		688,120
	54,902	Ormat Technologies, Inc.		1,367,060
				5,977,764
		Electrical Components & Equipment—13.6%
	68,425	Advanced Energy Industries, Inc.*		968,214
	1,186,095	China High Speed Transmission Equipment Group Co. Ltd. (China)		1,569,733
	56,858	EnerSys*		2,154,349
	254,858	Gamesa Corp. Tecnologica SA (Spain)*		2,399,848
	33,135	Saft Groupe SA (France)		1,523,932
	25,125	Schneider Electric SA (France)		4,446,962
	26,996	SMA Solar Technology AG (Germany)		3,223,727
	127,714	SunPower Corp., Class A*		2,780,334
	84,223	Vestas Wind Systems A/S (Denmark)*		2,995,846
				22,062,945
		Electronics—8.8%
	27,629	Badger Meter, Inc.		1,047,416
	53,444	Elster Group SE ADR (Germany)*		827,313
	57,000	Horiba Ltd. (Japan)		1,707,752
	49,507	Itron, Inc.*		2,694,666
	32,037	Roth & Rau AG (Germany)*		1,100,797
	74,664	Trimble Navigation Ltd.*		3,497,262
	18,407	Vaisala Oyj, Class A (Finland)		621,271
	78,286	Woodward, Inc.		2,900,496
				14,396,973

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
		Energy-Alternate Sources—3.6%
	2,589,000	China Longyuan Power Group Corp., H-Shares (China)	$	2,659,794
	23,323	First Solar, Inc.*		3,255,191
				5,914,985
		Engineering & Construction—6.4%
	176,139	ABB Ltd. (Switzerland)		4,843,341
	86,865	Arcadis NV (Netherlands)		2,246,255
	42,218	Grontmij NV CVA (Netherlands)		950,794
	61,947	Insituform Technologies, Inc., Class A*		1,567,879
	45,320	Mistras Group, Inc.*		830,262
				10,438,531
		Environmental Control—8.9%
	55,170	Asahi Holdings, Inc. (Japan)		1,132,773
	28,598	BWT AG (Austria)		864,683
	1,167,000	Hyflux Ltd. (Singapore)		2,052,813
	113,900	Kurita Water Industries Ltd. (Japan)		3,312,842
	123,184	Nalco Holding Co.		3,598,205
	78,549	Tetra Tech, Inc.*		1,855,327
	201,625	Tomra Systems ASA (Norway)		1,731,826
				14,548,469
		Hand/Machine Tools—1.5%
	49,512	Meyer Burger Technology AG (Switzerland)*		2,465,765
		Healthcare-Services—1.2%
	18,426	Eurofins Scientific (France)		1,989,027
		Machinery-Diversified—4.2%
	104,567	GLV, Inc., Class A (Canada)*		848,570
	32,747	Kadant, Inc.*		1,010,245
	17,728	Lindsay Corp.		1,299,817
	41,974	Roper Industries, Inc.		3,630,331
				6,788,963
		Mining—0.5%
	83,072	5N Plus, Inc. (Canada)*		812,466
		Miscellaneous Manufacturing—18.2%
	169,621	Alfa Laval AB (Sweden)		3,807,566
	60,018	CLARCOR, Inc.		2,712,213
	54,382	Donaldson Co., Inc.		3,329,810
	43,283	ESCO Technologies, Inc.		1,587,620
	109,497	Hexcel Corp.*		2,357,470
	63,724	Pall Corp.		3,724,031
	45,903	Polypore International, Inc.*		2,835,428
	31,556	Siemens AG (Germany)		4,598,316
	41,296	SPX Corp.		3,570,039
	63,531	STR Holdings, Inc.*		1,046,356
				29,568,849

See Notes to Financial Statements.

Schedule of Investments (Continued)

PowerShares Cleantech^TM Portfolio

April 30, 2011

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
		Semiconductors—7.5%
	77,509	Aixtron SE (Germany)	$	3,311,780
	22,484	Centrotherm Photovoltaics AG (Germany)*		1,363,478
	71,853	Cree, Inc.*		2,927,291
	172,014	GT Solar International, Inc.*		1,921,397
	41,561	Power Integrations, Inc.		1,676,571
	35,375	Rubicon Technology, Inc.*		1,008,541
				12,209,058
		Software—4.6%
	66,609	ANSYS, Inc.*		3,682,812
	83,196	Autodesk, Inc.*		3,742,156
				7,424,968
		Telecommunications—5.5%
	195,393	Corning, Inc.		4,091,530
	66,586	Polycom, Inc.*		3,983,840
	38,079	RuggedCom, Inc. (Canada)*		824,707
				8,900,077
		Total Common Stocks and Other Equity Interests (Cost $131,505,564)		162,532,926
		Money Market Fund—0.0%
	49,264	Goldman Sachs Financial Square Prime
		Obligations Institutional Share Class
		(Cost $49,264)		49,264
		Total Investments (Cost $131,554,828)—100.0%		162,582,190
		Liabilities in excess of other assets—(0.0%)		(51,749	)
		Net Assets—100.0%	$	162,530,441

Investment Abbreviations:

ADR—American Depositary Receipt

CVA—Dutch Certificate

Notes to Schedule of Investments:

* Non-income producing security.

See Notes to Financial Statements.

Schedule of Investments

PowerShares DWA Technical Leaders^TM Portfolio

April 30, 2011

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—26.7%
	97,687	AutoNation, Inc.*	$	3,312,566
	57,637	Big Lots, Inc.*		2,369,457
	98,920	Brinker International, Inc.		2,382,983
	108,302	CBS Corp., Class B		2,731,376
	217,750	Chico's FAS, Inc.		3,185,683
	163,116	Clear Channel Outdoor Holdings, Inc., Class A*		2,244,476
	139,456	Federal-Mogul Corp.*		3,695,584
	33,807	Fossil, Inc.*		3,238,034
	175,385	Gannett Co., Inc.		2,641,298
	49,575	John Wiley & Sons, Inc., Class A		2,524,855
	167,756	Liberty Media Corp. - Capital, Series A*		13,801,286
	186,094	Liberty Media Corp. - Interactive, Class A*		3,252,923
	32,174	McDonald's Corp.		2,519,546
	21,333	Panera Bread Co., Class A*		2,583,640
	52,267	Polo Ralph Lauren Corp.		6,834,956
	26,236	priceline.com, Inc.*		14,351,354
	66,359	Royal Caribbean Cruises Ltd.*		2,642,415
	64,931	Signet Jewelers Ltd. (United Kingdom)*		2,840,731
	34,454	Stanley Black & Decker, Inc.		2,503,083
	82,987	Tempur-Pedic International, Inc.*		5,209,924
	41,821	Tractor Supply Co.		2,587,465
	211,033	TRW Automotive Holdings Corp.*		12,041,543
	31,558	VF Corp.		3,173,473
	118,405	Virgin Media, Inc.		3,582,935
	128,164	Wyndham Worldwide Corp.		4,435,756
	21,824	Wynn Resorts Ltd.		3,211,402
	123,845	Yum! Brands, Inc.		6,643,046
				120,541,790
		Consumer Staples—4.6%
	167,324	Altria Group, Inc.		4,490,976
	38,892	Brown-Forman Corp., Class B		2,794,779
	111,512	Green Mountain Coffee Roasters, Inc.*		7,466,844
	100,466	Hormel Foods Corp.		2,954,705
	45,681	Whole Foods Market, Inc.		2,866,940
				20,574,244
		Energy—5.8%
	86,343	Atwood Oceanics, Inc.*		3,879,391
	29,283	Cimarex Energy Co.		3,238,407
	24,925	Concho Resources, Inc.*		2,663,236
	111,805	EQT Corp.		5,882,061
	39,082	Massey Energy Co.		2,666,956
	112,696	McDermott International, Inc.*		2,602,150
	29,899	Pioneer Natural Resources Co.		3,056,575
	32,678	Whiting Petroleum Corp.*		2,271,121
				26,259,897

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
		Financials—7.3%
	58,698	Arch Capital Group Ltd.*	$	6,104,592
	379,209	CapitalSource, Inc.		2,533,116
	164,355	CB Richard Ellis Group, Inc., Class A*		4,389,922
	257,291	Developers Diversified Realty Corp. REIT		3,792,469
	94,214	Hartford Financial Services Group, Inc. (The)		2,729,380
	71,026	Macerich Co. (The) REIT		3,751,593
	112,043	Protective Life Corp.		3,015,077
	37,614	SL Green Realty Corp. REIT		3,104,284
	147,105	XL Group PLC (Ireland)		3,592,304
				33,012,737
		Health Care—9.9%
	62,439	Alexion Pharmaceuticals, Inc.*		6,049,714
	106,025	Edwards Lifesciences Corp.*		9,155,259
	412,542	Health Management Associates, Inc., Class A*		4,653,474
	103,618	Henry Schein, Inc.*		7,571,367
	16,170	Mettler-Toledo International, Inc.*		3,030,258
	42,169	Perrigo Co.		3,810,391
	125,155	SXC Health Solutions Corp. (Canada)*		6,903,550
	62,846	Valeant Pharmaceuticals International, Inc. (Canada)		3,307,585
				44,481,598
		Industrials—25.3%
	183,424	AMETEK, Inc.		8,444,841
	127,053	C.H. Robinson Worldwide, Inc.		10,187,110
	74,341	CSX Corp.		5,849,893
	73,575	Danaher Corp.		4,064,283
	43,093	Deere & Co.		4,201,568
	72,415	Donaldson Co., Inc.		4,433,970
	49,384	Flowserve Corp.		6,253,002
	59,491	Gardner Denver, Inc.		5,140,617
	32,062	Goodrich Corp.		2,833,319
	63,390	IDEX Corp.		2,974,259
	231,649	J.B. Hunt Transport Services, Inc.		11,045,024
	82,757	Kirby Corp.*		4,698,943
	135,806	Manitowoc Co., Inc. (The)		3,013,535
	56,325	Norfolk Southern Corp.		4,206,351
	50,040	Precision Castparts Corp.		7,732,181
	68,443	Roper Industries, Inc.		5,919,635
	89,200	Textron, Inc.		2,328,120
	38,236	Union Pacific Corp.		3,956,279
	28,163	United Technologies Corp.		2,522,842
	26,662	W.W. Grainger, Inc.		4,041,959
	41,000	WABCO Holdings, Inc.*		3,027,850
	241,233	Waste Connections, Inc.		7,422,739
				114,298,320

See Notes to Financial Statements.

Schedule of Investments (Continued)

PowerShares DWA Technical Leaders^TM Portfolio

April 30, 2011

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
		Information Technology—9.1%
	73,883	Amphenol Corp., Class A	$	4,130,799
	40,060	Apple, Inc.*		13,950,094
	40,818	FactSet Research Systems, Inc.		4,465,897
	137,385	Fairchild Semiconductor International, Inc.*		2,880,963
	66,936	Gartner, Inc.*		2,872,224
	45,989	Informatica Corp.*		2,575,844
	67,441	SanDisk Corp.*		3,314,051
	113,194	Skyworks Solutions, Inc.*		3,561,083
	167,094	Vishay Intertechnology, Inc.*		3,188,153
				40,939,108
		Materials—7.6%
	68,135	AptarGroup, Inc.		3,573,681
	199,773	Ball Corp.		7,453,531
	29,526	Cliffs Natural Resources, Inc.		2,767,177
	44,947	Domtar Corp.		4,180,970
	56,057	FMC Corp.		4,948,712
	161,766	Huntsman Corp.		3,372,821
	39,350	Sherwin-Williams Co. (The)		3,238,111
	64,970	Sigma-Aldrich Corp.		4,585,582
				34,120,585
		Utilities—3.7%
	93,637	Energen Corp.		6,087,341
	35,995	National Fuel Gas Co.		2,638,434
	60,068	ONEOK, Inc.		4,201,156
	112,539	UGI Corp.		3,747,549
				16,674,480
		Total Common Stocks and Other Equity Interests (Cost $380,218,495)		450,902,759
		Money Market Fund—0.1%
	355,273	Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $355,273)		355,273
		Total Investments (Cost $380,573,768)—100.1%		451,258,032
		Liabilities in excess of other assets—(0.1%)		(353,893	)
		Net Assets—100.0%	$	450,904,139

Investment Abbreviations:

REIT—Real Estate Investment Trust

Notes to Schedule of Investments:

* Non-income producing security.

See Notes to Financial Statements.

Schedule of Investments

PowerShares Global Listed Private Equity Portfolio

April 30, 2011

Number of Shares			Value
		Common Stocks and Other Equity Interests—89.3%
		Diversified Financial Services—6.4%
	847,602	Brait SA (South Africa)	$	2,406,206
	2,002,458	Intermediate Capital Group PLC (United Kingdom)		11,022,006
	85,217	Partners Group Holding AG (Switzerland)		18,025,635
				31,453,847
		Electric—1.2%
	256,318	Otter Tail Corp.		5,992,715
		Food—2.6%
	725,707	Hakon Invest AB (Sweden)		12,834,782
		Holding Companies-Diversified—20.8%
	146,425	Ackermans & van Haaren NV (Belgium)		15,345,563
	291,255	Compass Diversified Holdings		4,881,434
	143,600	Hal Trust (Netherlands)		22,550,813
	446,799	Latour Investment AB, Class B (Sweden)		10,896,813
	638,778	Leucadia National Corp.		24,695,158
	130,415	Schouw & Co. (Denmark)		3,878,735
	163,279	Wendel (France)		20,486,302
				102,734,818
		Internet—0.4%
	116,272	Safeguard Scientifics, Inc.*		2,273,118
		Investment Companies—35.2%
	486,156	AP Alternative Assets LP (United Kingdom)*		6,290,859
	1,044,899	Apollo Investment Corp.		12,382,053
	3,196,669	ARC Capital Holdings Ltd. (Cayman Islands)*		3,532,319
	1,070,590	Ares Capital Corp.		18,960,149
	494,055	BlackRock Kelso Capital Corp.		5,197,459
	236,247	Candover Investments PLC (United Kingdom)*		2,418,472
	25,862	Capital Southwest Corp.		2,488,959
	1,642,000	China Merchants China Direct Investments Ltd. (Hong Kong)		3,597,873
	1,633,811	DeA Capital SpA (Italy)*		3,776,471
	173,472	Electra Private Equity PLC (United Kingdom)*		5,060,605
	486,262	Fifth Street Finance Corp.		6,481,873
	204,706	Gladstone Capital Corp.		2,325,460
	137,588	Golub Capital BDC, Inc.		2,206,912
	234,098	Hercules Technology Growth Capital, Inc.		2,516,553
	205,603	HgCapital Trust PLC (United Kingdom)		3,875,174
	619,200	Hosken Consolidated Investments Ltd. (South Africa)		7,708,040
	550,393	JZ Capital Partners Ltd. (Guernsey)		3,901,621
	122,115	Kayne Anderson Energy Development Co.*		2,393,454

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	2,412,640	Macquarie Korea Infrastructure Fund (South Korea)	$	11,391,740
	136,484	Main Street Capital Corp.		2,567,264
	579,559	MCG Capital Corp.		3,825,089
	169,219	MVC Capital, Inc.		2,340,299
	244,357	NGP Capital Resources Co.		2,306,730
	293,412	PennantPark Investment Corp.		3,620,704
	505,547	Prospect Capital Corp.		6,122,174
	594,205	Ratos AB, Class B (Sweden)		24,616,416
	566,991	RHJ International (Belgium)*		4,719,065
	266,070	Solar Capital Ltd.		6,752,857
	1,688,760	SVG Capital PLC (United Kingdom)*		7,729,214
	217,077	TICC Capital Corp.		2,461,653
				173,567,511
		Private Equity—21.7%
	4,342,763	3i Group PLC (United Kingdom)		20,289,088
	311,985	Altamir Amboise (France)*		3,841,747
	1,390,022	American Capital Ltd.*		14,275,526
	123,219	Deutsche Beteiligungs AG (Germany)		3,625,077
	198,280	Dinamia Capital Privado Sociedad de Capital Riesgo SA (Spain)		2,412,180
	208,432	Eurazeo (France)		17,391,082
	132,304	Gimv NV (Belgium)		8,785,773
	881,698	GP Investments Ltd. BDR (Bermuda)*		3,632,401
	369,060	Jafco Co. Ltd. (Japan)		9,347,033
	18,418,000	K1 Ventures Ltd. (Singapore)		2,260,339
	455	KKR & Co. LP		8,627
	466,624	Onex Corp. (Canada)		17,458,136
	127,292	Paris Orleans et Cie SA (France)		3,767,566
				107,094,575
		Water—1.0%
	158,323	Pico Holdings, Inc.*		5,085,335
		Total Common Stocks and Other Equity Interests (Cost $345,375,067)		441,036,701
		Exchange Traded Funds—9.8%
		Equity Fund—9.8%
	1,476,121	Financial Select Sector SPDR Fund		24,164,101
	177,177	SPDR S&P 500 ETF Trust		24,191,747
		Total Exchange Traded Funds (Cost $48,034,644)		48,355,848
		Total Investments (Cost $393,409,711)—99.1%		489,392,549
		Other assets less liabilities—0.9%		4,229,378
		Net Assets—100.0%	$	493,621,927

See Notes to Financial Statements.

Schedule of Investments (Continued)

PowerShares Global Listed Private Equity Portfolio

April 30, 2011

Investment Abbreviations:

ETF—Exchange-Traded Fund

BDR—Brazilian Depositary Receipt

SPDR—Standard & Poors Depositary Receipt

Notes to Schedule of Investments:

* Non-income producing security.

This Fund has holdings greater than 10% of net assets in the following countries:

United Kingdom

11.5

See Notes to Financial Statements.

Schedule of Investments

PowerShares Golden Dragon Halter USX China Portfolio

April 30, 2011

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Bermuda—0.6%
	60,221	China Yuchai International Ltd.*	$	1,994,519
	54,253	Global Sources Ltd.*		664,057
				2,658,576
		British Virgin Islands—1.2%
	72,559	Camelot Information Systems, Inc. ADR*		1,400,389
	26,590	China Ceramics Co. Ltd.*		146,245
	73,401	China Gerui Advanced Materials Group Ltd.*		355,995
	103,044	China Metro-Rural Holdings Ltd.*		360,654
	39,772	Duoyuan Global Water, Inc. ADR*		154,315
	87,986	Hollysys Automation Technologies Ltd.*		1,056,712
	41,673	Origin Agritech Ltd.*		323,382
	32,319	Ossen Innovation Co. Ltd. ADR*		104,714
	139,573	Renesola Ltd. ADR*		1,281,280
				5,183,686
		Canada—0.9%
	282,272	Silvercorp Metals, Inc.		3,836,076
		Cayman Islands—15.9%
	34,762	3SBio, Inc. ADR*		625,368
	80,345	7 Days Group Holdings Ltd. ADR*		1,846,328
	114,891	Actions Semiconductor Co. Ltd. ADR*		273,441
	115,187	Ambow Education Holding Ltd. ADR*		840,865
	31,808	AutoChina International Ltd.*		844,820
	75,743	AutoNavi Holdings Ltd. ADR*		1,364,131
	28,662	Bcd Semiconductor Manufacturing Ltd. ADR*		277,448
	66,661	Bitauto Holdings Ltd. ADR*		675,276
	94,851	Bona FILM Group Ltd. ADR*		558,672
	56,950	CDC Corp., Class A*		182,240
	42,044	Changyou.com Ltd. ADR*		1,905,434
	31,566	Charm Communications, Inc. ADR*		347,226
	58,703	ChemSpec International Ltd. ADR*		437,924
	119,166	China Cord Blood Corp.*		401,589
	93,796	China Digital TV Holding Co. Ltd. ADR		635,937
	55,318	China Distance Education Holdings Ltd. ADR*		204,123
	37,175	China GrenTech Corp. Ltd. ADR*		112,640
	82,569	China Hydroelectric Corp. ADR*		521,836
	36,848	China Kanghui Holdings, Inc. ADR*		707,482
	97,365	China Lodging Group Ltd. ADR*		2,131,320
	43,271	China Mass Media Corp. ADR*		77,455
	52,141	China Medical Technologies, Inc. ADR*		615,785
	201,990	China Ming Yang Wind Power Group Ltd. ADR*		1,739,134
	168,294	China Nepstar Chain Drugstore Ltd. ADR		597,444
	41,571	China New Borun Corp. ADR*		387,857
	32,414	China Nuokang Bio-Pharmaceutical, Inc. ADR*		135,166

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	232,059	China Real Estate Information Corp. ADR*	$	2,028,196
	85,536	China Techfaith Wireless Communication Technology Ltd. ADR*		398,598
	92,763	China Xiniya Fashion Ltd. ADR*		374,763
	37,499	ChinaCache International Holdings Ltd. ADR*		630,358
	81,159	CNinsure, Inc. ADR		1,191,414
	76,678	Concord Medical Services Holdings Ltd. ADR*		417,128
	41,204	Country Style Cooking Restaurant Chain Co. Ltd. ADR*		690,579
	56,790	Daqo New Energy Corp. ADR*		696,813
	25,278	E-Commerce China Dangdang, Inc. ADR*		581,647
	129,643	E-House China Holdings Ltd. ADR		1,549,234
	97,325	Funtalk China Holdings Ltd.*		622,880
	42,151	Global Education & Technology Group Ltd. ADR*		264,287
	27,715	Gushan Environmental Energy Ltd. ADR*		114,186
	118,630	Hanwha SolarOne Co. Ltd. ADR*		810,243
	47,885	hiSoft Technology International Ltd. ADR*		893,534
	73,920	IFM Investments Ltd. ADR*		208,454
	84,668	iSoftStone Holdings Ltd. ADR*		1,678,120
	35,118	JinkoSolar Holding Co. Ltd. ADR*		953,454
	35,552	Ku6 Media Co. Ltd. ADR*		264,507
	171,458	Lentuo International, Inc. ADR*		524,661
	92,227	Longtop Financial Technologies Ltd. ADR*		2,080,641
	92,615	Mecox Lane Ltd. ADR*		509,382
	62,965	New Oriental Education & Technology Group, Inc. ADR*		7,847,958
	64,004	Noah Education Holdings Ltd. ADR*		154,250
	89,940	Noah Holdings Ltd. ADR*		1,618,021
	16,337	Perfect World Co. Ltd. ADR*		444,530
	70,430	RDA Microelectronics, Inc. ADR*		926,155
	885,362	Semiconductor Manufacturing International Corp. ADR*		3,877,886
	232,728	Shanda Games Ltd. ADR*		1,745,460
	30,128	ShangPharma Corp. ADR*		361,536
	105,330	SinoTech Energy Ltd. ADR*		679,378
	51,991	Sky-Mobi Ltd. ADR*		1,126,645
	163,785	SouFun Holdings Ltd. ADR*		3,775,244
	77,999	Spreadtrum Communications, Inc. ADR*		1,669,179
	78,079	Syswin, Inc. ADR*		469,255
	60,192	TAL Education Group ADR*		767,448
	127,574	Trina Solar Ltd. ADR*		3,634,583
	13,013	Tri-Tech Holding, Inc.*		139,760
	71,468	VanceInfo Technologies, Inc. ADR*		2,298,411
	112,961	WuXi PharmaTech Cayman, Inc. ADR*		1,988,114
	108,509	Xueda Education Group ADR*		1,190,344
	9,456	Youku.Com, Inc. ADR*		559,039
				71,203,216

See Notes to Financial Statements.

Schedule of Investments (Continued)

PowerShares Golden Dragon Halter USX China Portfolio

April 30, 2011

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
		China—60.6%
	45,552	51job, Inc. ADR*	$	2,550,456
	48,090	Acorn International, Inc. ADR		244,297
	87,085	AgFeed Industries, Inc.*		140,207
	101,124	Agria Corp. ADR*		122,360
	105,987	Airmedia Group, Inc. ADR*		504,498
	806,758	Aluminum Corp. of China Ltd. ADR		18,999,151
	127,010	American Oriental Bioengineering, Inc.*		191,785
	36,197	ATA, Inc. ADR*		300,797
	188,929	Baidu, Inc. ADR*		28,059,735
	69,021	Canadian Solar, Inc.*		744,737
	365,529	China Eastern Airlines Corp. Ltd. ADR*		8,059,914
	35,553	China Finance Online Co. Ltd. ADR*		199,452
	352,832	China Life Insurance Co. Ltd. ADR		18,943,550
	192,283	China Petroleum and Chemical Corp. ADR		19,376,358
	144,982	China Security & Surveillance Technology, Inc.*		780,003
	318,269	China Southern Airlines Co. Ltd. ADR*		8,367,292
	71,987	China Sunergy Co. Ltd. ADR*		259,873
	322,791	China Telecom Corp. Ltd. ADR		18,834,855
	26,338	ChinaEdu Corp. ADR*		189,897
	220,802	Ctrip.com International Ltd. ADR*		10,757,473
	19,161	eLong, Inc. ADR*		277,260
	232,064	Focus Media Holding Ltd. ADR*		8,157,050
	21,103	Fuwei Films Holdings Co. Ltd.*		52,969
	88,618	General Steel Holdings, Inc.*		200,277
	365,912	Giant Interactive Group, Inc. ADR		3,238,321
	228,927	Guangshen Railway Co. Ltd. ADR		4,548,779
	66,022	Home Inns & Hotels Management, Inc. ADR*		2,854,131
	508,760	Huaneng Power International, Inc. ADR		11,289,384
	271,445	JA Solar Holdings Co. Ltd. ADR*		1,864,827
	26,544	Jinpan International Ltd.		324,899
	56,116	KongZhong Corp. ADR*		490,454
	234,245	LDK Solar Co. Ltd. ADR*		2,705,530
	69,315	Linktone Ltd. ADR*		83,871
	184,376	Mindray Medical International Ltd. ADR		4,928,370
	209,937	NetEase.com, Inc. ADR*		10,345,695
	176,975	PetroChina Co. Ltd. ADR		25,764,021
	85,134	Qiao Xing Mobile Communication Co. Ltd.*		234,119
	147,494	Qiao Xing Universal Resources, Inc.*		314,162
	108,965	Shanda Interactive Entertainment Ltd. ADR*		5,271,727
	87,164	Simcere Pharmaceutical Group ADR*		1,106,111
	100,129	SINA Corp.*		13,492,383
	116,347	Sinopec Shanghai Petrochemical Co. Ltd. ADR		5,674,243
	87,536	Sinovac Biotech Ltd.*		348,393
	291,104	Suntech Power Holdings Co. Ltd. ADR*		2,611,203
	40,578	The9 Ltd. ADR*		293,785
	59,645	Vimicro International Corp. ADR*		165,813

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	165,225	VisionChina Media, Inc. ADR*	$	710,468
	166,269	WSP Holdings Ltd. ADR*		226,126
	124,272	Xinyuan Real Estate Co. Ltd. ADR*		269,670
	565,371	Yanzhou Coal Mining Co. Ltd. ADR		22,072,084
	239,830	Yingli Green Energy Holding Co. Ltd. ADR*		3,005,070
	28,942	Yucheng Technologies Ltd.*		115,768
				270,663,653
		Hong Kong—14.2%
	418,968	China Mobile Ltd. ADR		19,310,235
	36,280	China Natural Resources, Inc.*		492,683
	1,130,794	China Unicom Ltd. ADR		23,136,045
	79,827	CNOOC Ltd. ADR		19,912,845
	72,397	Nam Tai Electronics, Inc.		444,518
				63,296,326
		United States—6.6%
	123,521	Advanced Battery Technologies, Inc.*		212,456
	55,928	American Lorain Corp.*		124,719
	76,605	Aoxing Pharmaceutical Co., Inc.*		149,380
	74,711	A-Power Energy Generation Systems Ltd.*		302,580
	121,279	AsiaInfo-Linkage, Inc.*		2,292,173
	44,267	Biostar Pharmaceuticals, Inc.*		73,483
	28,045	China Advanced Construction Materials Group, Inc.*		79,087
	34,224	China Agritech, Inc.*		211,915
	29,820	China Auto Logistics, Inc.*		61,131
	43,815	China Automotive Systems, Inc.*		422,815
	102,800	China BAK Battery, Inc.*		161,396
	39,132	China Biologic Products, Inc.*		548,239
	59,126	China Botanic Pharmaceutical, Inc.*		84,550
	51,489	China Education Alliance, Inc.*		65,906
	35,828	China Electric Motor, Inc.*		94,478
	45,015	China Fire & Security Group, Inc.*		312,854
	39,253	China GengSheng Minerals, Inc.*		107,161
	43,385	China Green Agriculture, Inc.*		305,430
	53,792	China Housing & Land Development, Inc.*		118,880
	84,522	China Information Technology, Inc.*		221,448
	61,604	China Integrated Energy, Inc.*		113,351
	22,250	China Jo-Jo Drugstores, Inc.*		60,297
	47,170	China Marine Food Group Ltd.*		163,680
	60,579	China MediaExpress Holdings, Inc.*		537,487
	34,455	China Natural Gas, Inc.*		182,956
	47,837	China North East Petroleum Holdings Ltd.*		204,264
	59,459	China Nutrifruit Group Ltd.*		127,242
	69,957	China Pharma Holdings, Inc.*		172,794
	75,241	China Precision Steel, Inc.*		118,881
	62,661	China Recycling Energy Corp.*		150,386
	45,205	China Shen Zhou Mining & Resources, Inc.*		215,628
	63,760	China Shengda Packaging Group, Inc.*		96,278
	27,659	China Sky One Medical, Inc.*		78,828

See Notes to Financial Statements.

Schedule of Investments (Continued)

PowerShares Golden Dragon Halter USX China Portfolio

April 30, 2011

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	40,813	China TransInfo Technology Corp.*	$	197,535
	57,045	China Valves Technology, Inc.*		229,321
	30,387	China Wind Systems, Inc.*		72,929
	76,965	China XD Plastics Co. Ltd.*		339,416
	31,593	China Yida Holding Co.*		221,151
	35,795	China-Biotics, Inc.*		349,359
	80,437	ChinaCast Education Corp.*		491,470
	28,132	ChinaNet Online Holdings, Inc.*		90,304
	24,353	Chindex International, Inc.*		418,628
	58,195	Cogo Group, Inc.*		477,781
	54,281	Deer Consumer Products, Inc.		550,409
	36,030	Feihe International, Inc.*		384,800
	61,076	Fushi Copperweld, Inc.*		491,662
	32,955	Guanwei Recycling Corp.*		74,808
	56,128	Gulf Resources, Inc.*		175,681
	50,500	Harbin Electric, Inc.*		945,360
	29,480	HQ Sustainable Maritime Industries, Inc.*		90,209
	20,599	Jiangbo Pharmaceuticals, Inc.*		97,227
	32,861	Jingwei International Ltd.*		94,640
	39,275	Kandi Technolgies Corp.*		113,897
	93,039	Keyuan Petrochemicals, Inc.		452,169
	68,421	Kingold Jewelry, Inc.*		135,474
	51,263	L&L Energy, Inc.*		356,278
	48,036	Lihua International, Inc.*		386,690
	159,560	Longwei Petroleum Investment Holding Ltd.*		287,208
	20,379	New Energy Systems Group*		74,791
	79,031	NIVS IntelliMedia Technology Group, Inc.*		156,481
	29,646	Orient Paper, Inc.*		112,062
	48,514	Puda Coal, Inc.*		291,084
	48,053	QKL Stores, Inc.*		118,210
	88,087	ShengdaTech, Inc.*		235,192
	43,616	Shengkai Innovations, Inc.*		143,933
	27,147	Sino Clean Energy, Inc.*		78,183
	33,969	SinoCoking Coal And Coke Chemical Industries, Inc.*		217,402
	47,051	Sinohub, Inc.*		79,987
	41,351	SkyPeople Fruit Juice, Inc.*		132,323
	11,571	Skystar Bio-Pharmaceutical Co. Ltd.*		50,102
	61,781	SmartHeat, Inc.*		181,636
	61,875	Sohu.com, Inc.*		6,543,900
	31,197	SORL Auto Parts, Inc.*		160,665
	67,048	Sutor Technology Group Ltd.*		109,959
	78,252	Synthesis Energy Systems, Inc.*		313,790
	92,594	Synutra International, Inc.*		962,978
	19,176	Telestone Technologies Corp.*		121,768
	45,820	Tianyin Pharmaceutical Co., Inc.*		103,553
	115,269	Tiens Biotech Group USA, Inc.*		152,155
	58,934	Trunkbow International Holdings Ltd.*		268,739
	32,152	Universal Travel Group*		114,590
	249,103	UTStarcom, Inc.*		640,195

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	38,992	Winner Medical Group, Inc.*	$	196,910
	54,715	Wonder Auto Technology, Inc.*		323,913
	79,777	Yongye International, Inc.*		418,031
	32,083	Yuhe International, Inc.*		177,740
	65,211	Zhongpin, Inc.*		1,089,024
	21,540	Zoom Technologies, Inc.*		79,052
	19,201	ZST Digital Networks, Inc.*		56,451
				29,401,358
		Total Investments (Cost $398,015,244)—100.0%		446,242,891
		Other assets less liabilities—0.0%		48,899
		Net Assets—100.0%	$	446,291,790

Investment Abbreviations:

ADR—American Depositary Receipt

Notes to Schedule of Investments:

* Non-income producing security.

See Notes to Financial Statements.

Schedule of Investments

PowerShares Lux Nanotech Portfolio

April 30, 2011

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Auto Manufacturers—3.4%
	16,540	Toyota Motor Corp. ADR (Japan)	$	1,317,907
		Biotechnology—6.0%
	780,844	Nanosphere, Inc.*		2,319,107
		Chemicals—10.5%
	14,822	Air Products & Chemicals, Inc.		1,415,798
	24,704	E.I. du Pont de Nemours & Co.		1,402,940
	454,921	ShengdaTech, Inc.*		1,214,639
				4,033,377
		Computers—7.0%
	31,616	Hewlett-Packard Co.		1,276,338
	8,256	International Business Machines Corp.		1,408,308
				2,684,646
		Electrical Components & Equipment—9.3%
	245,337	A123 Systems, Inc.*		1,481,835
	822,628	Ener1, Inc.*		2,081,249
				3,563,084
		Electronics—11.1%
	52,080	FEI Co.*		1,690,517
	43,813	NVE Corp.*		2,583,214
				4,273,731
		Energy-Alternate Sources—4.3%
	303,127	Headwaters, Inc.*		1,655,073
		Investment Companies—6.4%
	467,613	Harris & Harris Group, Inc.*		2,440,940
		Miscellaneous Manufacturing—7.3%
	14,463	3M Co.		1,405,948
	67,459	General Electric Co.		1,379,537
				2,785,485
		Pharmaceuticals—19.7%
	752,190	BioDelivery Sciences International, Inc.*		2,775,581
	362,247	Elan Corp. PLC ADR (Ireland)*		2,934,201
	286,710	Flamel Technologies SA ADR (France)*		1,849,279
				7,559,061
		Semiconductors—10.5%
	65,502	Intel Corp.		1,518,992
	49,470	Veeco Instruments, Inc.*		2,529,401
				4,048,393
		Software—4.5%
	226,249	Accelrys, Inc.*		1,712,705
		Total Common Stocks and Other Equity Interests (Cost $37,937,712)		38,393,509

Number of Shares			Value
		Money Market Fund—0.2%
	90,796	Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $90,796)	$	90,796
		Total Investments (Cost $38,028,508)—100.2%		38,484,305
		Liabilities in excess of other assets—(0.2%)		(93,829	)
		Net Assets—100.0%	$	38,390,476

Investment Abbreviations:

ADR—American Depositary Receipt

Notes to Schedule of Investments:

* Non-income producing security.

See Notes to Financial Statements.

Schedule of Investments

PowerShares Morningstar StockInvestor Core Portfolio

April 30, 2011

Number of Shares			Value
		Common Stocks and Other Equity Interests—99.9%
		Aerospace/Defense—2.1%
	5,577	General Dynamics Corp.	$	406,117
		Banks—1.8%
	7,605	JPMorgan Chase & Co.		347,016
		Beverages—2.2%
	3,549	Molson Coors Brewing Co., Class B		173,014
	3,802	PepsiCo, Inc.		261,920
				434,934
		Biotechnology—1.1%
	3,802	Amgen, Inc.*		216,144
		Building Materials—0.9%
	21,670	Cemex SAB de CV ADR (Mexico)*		188,096
		Coal—2.1%
	20,280	Cloud Peak Energy, Inc.*		422,230
		Commercial Services—14.3%
	9,886	Apollo Group, Inc., Class A*		395,737
	8,872	Automatic Data Processing, Inc.		482,193
	15,210	CoreLogic, Inc.*		280,016
	2,535	MasterCard, Inc., Class A		699,381
	17,745	Paychex, Inc.		580,439
	18,505	Western Union Co. (The)		393,231
				2,830,997
		Computers—0.8%
	10,140	Dell, Inc.*		157,271
		Cosmetics/Personal Care—1.2%
	3,802	Procter & Gamble Co. (The)		246,750
		Distribution/Wholesale—0.9%
	2,535	Fastenal Co.		170,073
		Diversified Financial Services—4.7%
	6,337	American Express Co.		311,020
	25,350	Discover Financial Services		629,694
				940,714
		Electric—4.0%
	18,759	Exelon Corp.		790,692
		Entertainment—3.1%
	10,140	International Game Technology		179,377
	14,196	International Speedway Corp., Class A		434,397
				613,774
		Food—1.7%
	11,914	Sysco Corp.		344,434

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
		Healthcare-Products—4.3%
	6,591	Johnson & Johnson	$	433,161
	6,337	Zimmer Holdings, Inc.*		413,489
				846,650
		Insurance—4.9%
	8,872	Berkshire Hathaway, Inc., Class B*		739,038
	15,210	First American Financial Corp.		237,276
				976,314
		Internet—2.9%
	16,731	eBay, Inc.*		575,546
		Mining—6.4%
	10,140	Compass Minerals International, Inc.		989,765
	6,084	Vulcan Materials Co.		274,997
				1,264,762
		Miscellaneous Manufacturing—1.2%
	2,535	3M Co.		246,427
		Oil & Gas—3.3%
	7,402	Exxon Mobil Corp.		651,376
		Pharmaceuticals—9.2%
	14,652	Abbott Laboratories		762,490
	9,379	Novartis AG ADR (Switzerland)		554,955
	23,829	Pfizer, Inc.		499,456
				1,816,901
		Pipelines—3.4%
	5,157	Kinder Morgan Management LLC*		351,583
	7,605	TransCanada Corp. (Canada)		326,559
				678,142
		Real Estate—7.0%
	53,234	St. Joe Co. (The)*		1,390,472
		Retail—9.8%
	17,745	CarMax, Inc.*		615,752
	25,350	Lowe's Cos., Inc.		665,437
	5,577	Walgreen Co.		238,249
	7,605	Wal-Mart Stores, Inc.		418,123
				1,937,561
		Software—3.9%
	12,675	Autodesk, Inc.*		570,122
	7,605	Microsoft Corp.		197,882
				768,004
		Telecommunications—1.1%
	12,675	Cisco Systems, Inc.		222,573

See Notes to Financial Statements.

Schedule of Investments (Continued)

PowerShares Morningstar StockInvestor Core Portfolio

April 30, 2011

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
		Textiles—1.6%
	10,140	Cintas Corp.	$	314,847
		Total Common Stocks and Other Equity Interests (Cost $16,134,762)		19,798,817
		Money Market Fund—0.4%
	75,730	Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $75,730)		75,730
		Total Investments (Cost $16,210,492)—100.3%		19,874,547
		Liabilities in excess of other assets—(0.3%)		(58,073	)
		Net Assets—100.0%	$	19,816,474

Investment Abbreviations:

ADR—American Depositary Receipt

Notes to Schedule of Investments:

* Non-income producing security.

See Notes to Financial Statements.

Schedule of Investments

PowerShares S&P 500 BuyWrite Portfolio

April 30, 2011

Number of Shares			Value
		Common Stocks and Other Equity Interests(<)—103.5%
		Consumer Discretionary—11.0%
	876	Abercrombie & Fitch Co., Class A	$	62,021
	3,571	Amazon.com, Inc.*		701,702
	1,236	Apollo Group, Inc., Class A*		49,477
	644	AutoNation, Inc.*		21,838
	268	AutoZone, Inc.*		75,678
	2,557	Bed Bath & Beyond, Inc.*		143,499
	3,285	Best Buy Co., Inc.		102,558
	758	Big Lots, Inc.*		31,161
	2,335	Cablevision Systems Corp., Class A		82,262
	2,264	CarMax, Inc.*		78,561
	4,333	Carnival Corp.		164,957
	6,751	CBS Corp., Class B		170,260
	311	Chipotle Mexican Grill, Inc.*		82,972
	2,969	Coach, Inc.		177,576
	27,829	Comcast Corp., Class A		730,233
	2,821	D.R. Horton, Inc.		35,093
	1,386	Darden Restaurants, Inc.		65,100
	619	DeVry, Inc.		32,745
	7,967	DIRECTV, Class A*		387,117
	2,827	Discovery Communications, Inc., Class A*		125,123
	2,009	Expedia, Inc.		50,285
	1,269	Family Dollar Stores, Inc.		68,792
	37,977	Ford Motor Co.*		587,504
	1,540	Fortune Brands, Inc.		100,223
	1,413	GameStop Corp., Class A*		36,286
	2,406	Gannett Co., Inc.		36,234
	4,147	Gap, Inc. (The)		96,376
	1,583	Genuine Parts Co.		85,007
	2,439	Goodyear Tire & Rubber Co. (The)*		44,268
	3,065	H&R Block, Inc.		52,994
	2,365	Harley-Davidson, Inc.		88,120
	699	Harman International Industries, Inc.		33,922
	1,376	Hasbro, Inc.		64,452
	16,426	Home Depot, Inc. (The)		610,062
	3,000	International Game Technology		53,070
	4,911	Interpublic Group of Cos., Inc. (The)		57,704
	2,376	J.C. Penney Co., Inc.		91,357
	6,800	Johnson Controls, Inc.		278,800
	2,935	Kohl's Corp.		154,704
	1,470	Leggett & Platt, Inc.		38,646
	1,613	Lennar Corp., Class A		30,631
	2,655	Limited Brands, Inc.		109,280
	13,855	Lowe's Cos., Inc.		363,694
	4,250	Macy's, Inc.		101,618
	2,918	Marriott International, Inc., Class A		103,005
	3,501	Mattel, Inc.		93,547
	10,457	McDonald's Corp.		818,888
	3,079	McGraw-Hill Cos., Inc. (The)		124,607
	441	Netflix, Inc.*		102,607
	2,917	Newell Rubbermaid, Inc.*		55,598

Number of Shares			Value
		Common Stocks and Other Equity Interests(<) (Continued)
	22,928	News Corp., Class A	$	408,577
	3,843	NIKE, Inc., Class B		316,356
	1,685	Nordstrom, Inc.		80,122
	2,852	Omnicom Group, Inc.		140,290
	1,417	O'Reilly Automotive, Inc.*		83,688
	657	Polo Ralph Lauren Corp.		85,916
	493	priceline.com, Inc.*		269,676
	3,375	Pulte Group, Inc.*		27,439
	1,062	RadioShack Corp.		16,790
	1,196	Ross Stores, Inc.		88,133
	909	Scripps Networks Interactive, Inc., Class A		46,741
	437	Sears Holdings Corp.*		37,569
	1,679	Stanley Black & Decker, Inc.		121,979
	7,223	Staples, Inc.		152,694
	7,490	Starbucks Corp.		271,063
	1,929	Starwood Hotels & Resorts Worldwide, Inc.		114,911
	7,109	Target Corp.		349,052
	1,269	Tiffany & Co.		88,119
	3,447	Time Warner Cable, Inc.		269,314
	10,972	Time Warner, Inc.		415,400
	3,974	TJX Cos., Inc. (The)		213,086
	1,285	Urban Outfitters, Inc.*		40,426
	869	VF Corp.		87,387
	5,993	Viacom, Inc., Class B		306,602
	19,035	Walt Disney Co. (The)		820,409
	53	Washington Post Co. (The), Class B		23,103
	763	Whirlpool Corp.		65,755
	1,739	Wyndham Worldwide Corp.		60,187
	763	Wynn Resorts Ltd.		112,275
	4,693	Yum! Brands, Inc.		251,733
				13,217,006
		Consumer Staples—10.8%
	21,003	Altria Group, Inc.		563,721
	6,398	Archer-Daniels-Midland Co.		236,854
	4,315	Avon Products, Inc.		126,775
	1,035	Brown-Forman Corp., Class B		74,375
	1,833	Campbell Soup Co.		61,570
	1,382	Clorox Co. (The)		96,270
	22,996	Coca-Cola Co. (The)		1,551,310
	3,315	Coca-Cola Enterprises, Inc.		94,179
	4,958	Colgate-Palmolive Co.		418,207
	4,105	ConAgra Foods, Inc.		100,367
	1,766	Constellation Brands, Inc., Class A*		39,541
	4,383	Costco Wholesale Corp.		354,672
	13,736	CVS Caremark Corp.		497,793
	1,839	Dean Foods Co.*		20,578
	2,249	Dr Pepper Snapple Group, Inc.		88,161
	1,150	Estee Lauder Cos., Inc. (The), Class A		111,550
	6,383	General Mills, Inc.		246,256
	3,231	H.J. Heinz Co.		165,524

See Notes to Financial Statements.

Schedule of Investments (Continued)

PowerShares S&P 500 BuyWrite Portfolio

April 30, 2011

Number of Shares			Value
		Common Stocks and Other Equity Interests(<) (Continued)
	1,552	Hershey Co. (The)	$	89,566
	1,390	Hormel Foods Corp.		40,880
	1,195	J.M. Smucker Co. (The)		89,709
	2,529	Kellogg Co.		144,836
	4,060	Kimberly-Clark Corp.		268,204
	17,558	Kraft Foods, Inc., Class A		589,598
	6,385	Kroger Co. (The)		155,219
	1,461	Lorillard, Inc.		155,596
	1,335	McCormick & Co., Inc.		65,575
	2,054	Mead Johnson Nutrition Co.		137,371
	1,595	Molson Coors Brewing Co., Class B		77,756
	15,902	PepsiCo, Inc.		1,095,489
	18,013	Philip Morris International, Inc.		1,250,823
	28,073	Procter & Gamble Co. (The)		1,821,938
	3,395	Reynolds American, Inc.		125,988
	3,697	Safeway, Inc.		89,874
	6,249	Sara Lee Corp.		119,981
	2,130	SUPERVALU, Inc.		23,984
	5,850	Sysco Corp.		169,123
	2,994	Tyson Foods, Inc., Class A		59,581
	9,261	Walgreen Co.		395,630
	19,636	Wal-Mart Stores, Inc.		1,079,587
	1,481	Whole Foods Market, Inc.		92,948
				12,986,959
		Energy—13.5%
	4,982	Anadarko Petroleum Corp.		393,279
	3,843	Apache Corp.		512,541
	4,360	Baker Hughes, Inc.		337,508
	1,047	Cabot Oil & Gas Corp.		58,925
	2,457	Cameron International Corp.*		129,533
	6,602	Chesapeake Energy Corp.		222,289
	20,121	Chevron Corp.		2,202,042
	14,330	ConocoPhillips		1,131,067
	2,271	CONSOL Energy, Inc.		122,838
	4,026	Denbury Resources, Inc.*		90,867
	4,287	Devon Energy Corp.		390,117
	698	Diamond Offshore Drilling, Inc.		52,957
	7,685	El Paso Corp.		149,166
	2,689	EOG Resources, Inc.		303,615
	1,498	EQT Corp.		78,810
	49,701	Exxon Mobil Corp.		4,373,688
	2,412	FMC Technologies, Inc.*		112,110
	9,170	Halliburton Co.		462,902
	1,068	Helmerich & Payne, Inc.		70,851
	3,017	Hess Corp.		259,341
	7,131	Marathon Oil Corp.		385,359
	1,039	Massey Energy Co.		70,901
	1,936	Murphy Oil Corp.		150,001
	2,873	Nabors Industries Ltd. (Bermuda)*		88,029
	4,227	National Oilwell Varco, Inc.		324,169

Number of Shares			Value
		Common Stocks and Other Equity Interests(<) (Continued)
	1,349	Newfield Exploration Co.*	$	95,509
	2,533	Noble Corp. (Switzerland)		108,944
	1,764	Noble Energy, Inc.		169,820
	8,147	Occidental Petroleum Corp.		931,121
	2,716	Peabody Energy Corp.		181,483
	1,169	Pioneer Natural Resources Co.		119,507
	1,770	QEP Resources, Inc.		75,632
	1,611	Range Resources Corp.		90,941
	1,268	Rowan Cos., Inc.*		52,876
	13,641	Schlumberger Ltd.		1,224,280
	3,491	Southwestern Energy Co.*		153,115
	6,512	Spectra Energy Corp.		189,109
	1,211	Sunoco, Inc.		51,661
	1,437	Tesoro Corp.*		38,971
	5,712	Valero Energy Corp.		161,650
	5,885	Williams Cos., Inc. (The)		195,206
				16,312,730
		Financials—16.0%
	3,369	ACE Ltd. (Switzerland)		226,565
	4,721	Aflac, Inc.		265,273
	5,319	Allstate Corp. (The)		179,995
	10,502	American Express Co.		515,438
	1,442	American International Group, Inc.*		44,918
	2,475	Ameriprise Financial, Inc.		153,599
	3,344	Aon Corp.		174,457
	1,186	Apartment Investment & Management Co., Class A REIT		31,975
	1,003	Assurant, Inc.		39,819
	864	AvalonBay Communities, Inc. REIT		109,391
	101,446	Bank of America Corp.		1,245,757
	12,467	Bank of New York Mellon Corp. (The)		361,044
	6,974	BB&T Corp.		187,740
	17,350	Berkshire Hathaway, Inc., Class B*		1,445,255
	960	BlackRock, Inc.		188,102
	1,432	Boston Properties, Inc. REIT		149,687
	4,592	Capital One Financial Corp.		251,320
	2,924	CB Richard Ellis Group, Inc., Class A*		78,100
	10,027	Charles Schwab Corp. (The)		183,594
	2,964	Chubb Corp. (The)		193,223
	1,636	Cincinnati Financial Corp.		51,829
	291,233	Citigroup, Inc.*		1,336,760
	673	CME Group, Inc.		199,053
	1,775	Comerica, Inc.		67,326
	5,474	Discover Financial Services		135,974
	2,488	ETRADE Financial Corp.		40,405
	2,951	Equity Residential REIT		176,234
	930	Federated Investors, Inc., Class B		23,975
	9,214	Fifth Third Bancorp		122,270
	2,644	First Horizon National Corp.		28,952
	1,456	Franklin Resources, Inc.		187,999

See Notes to Financial Statements.

Schedule of Investments (Continued)

PowerShares S&P 500 BuyWrite Portfolio

April 30, 2011

Number of Shares			Value
		Common Stocks and Other Equity Interests(<) (Continued)
	4,918	Genworth Financial, Inc., Class A*	$	59,950
	5,217	Goldman Sachs Group, Inc. (The)		787,819
	4,465	Hartford Financial Services Group, Inc. (The)		129,351
	4,026	HCP, Inc. REIT		159,510
	1,768	Health Care REIT, Inc. REIT		95,065
	6,831	Host Hotels & Resorts, Inc. REIT		121,524
	5,288	Hudson City Bancorp, Inc.		50,395
	8,668	Huntington Bancshares, Inc.		58,856
	737	IntercontinentalExchange, Inc.*		88,698
	4,622	Invesco Ltd.(~)		114,949
	1,868	Janus Capital Group, Inc.		22,734
	39,927	JPMorgan Chase & Co.		1,821,869
	9,549	KeyCorp		82,790
	4,080	Kimco Realty Corp. REIT		79,723
	1,528	Legg Mason, Inc.		56,765
	1,987	Leucadia National Corp.		76,817
	3,170	Lincoln National Corp.		98,999
	3,157	Loews Corp.		139,729
	1,207	M&T Bank Corp.		106,663
	5,462	Marsh & McLennan Cos., Inc.		165,389
	5,322	Marshall & Ilsley Corp.		43,481
	10,593	MetLife, Inc.		495,646
	2,004	Moody's Corp.		78,437
	15,517	Morgan Stanley		405,770
	1,504	NASDAQ OMX Group, Inc. (The)*		40,758
	2,431	Northern Trust Corp.		121,526
	2,622	NYSE Euronext		105,011
	3,634	People's United Financial, Inc.		49,749
	1,625	Plum Creek Timber Co., Inc. REIT		70,021
	5,276	PNC Financial Services Group, Inc.		328,906
	3,221	Principal Financial Group, Inc.		108,709
	6,626	Progressive Corp. (The)		145,374
	5,727	ProLogis REIT		93,293
	4,879	Prudential Financial, Inc.		309,426
	1,403	Public Storage REIT		164,586
	12,627	Regions Financial Corp.		92,682
	2,981	Simon Property Group, Inc. REIT		341,444
	5,290	SLM Corp.		87,761
	5,042	State Street Corp.		234,705
	5,379	SunTrust Banks, Inc.		151,634
	2,600	T. Rowe Price Group, Inc.		167,050
	782	Torchmark Corp.		52,331
	4,328	Travelers Cos., Inc. (The)		273,876
	19,295	U.S. Bancorp		498,197
	3,109	Unum Group		82,326
	1,636	Ventas, Inc. REIT		91,502
	1,641	Vornado Realty Trust REIT		158,652
	52,803	Wells Fargo & Co.		1,537,095
	5,393	Weyerhaeuser Co. REIT		124,093
	3,122	XL Group PLC (Ireland)		76,239

Number of Shares			Value
		Common Stocks and Other Equity Interests(<) (Continued)
	1,837	Zions Bancorp	$	44,915
				19,288,819
		Health Care—11.7%
	15,512	Abbott Laboratories		807,244
	3,860	Aetna, Inc.		159,727
	3,465	Agilent Technologies, Inc.*		172,938
	3,069	Allergan, Inc.		244,170
	2,752	AmerisourceBergen Corp.		111,841
	9,361	Amgen, Inc.*		532,173
	5,817	Baxter International, Inc.		330,987
	2,220	Becton, Dickinson and Co.		190,787
	2,419	Biogen Idec, Inc.*		235,490
	15,294	Boston Scientific Corp.*		114,552
	17,092	Bristol-Myers Squibb Co.		480,285
	854	C.R. Bard, Inc.		91,164
	3,511	Cardinal Health, Inc.		153,396
	2,240	CareFusion Corp.*		65,789
	4,667	Celgene Corp.*		274,793
	760	Cephalon, Inc.*		58,368
	720	Cerner Corp.*		86,530
	2,723	CIGNA Corp.		127,518
	1,504	Coventry Health Care, Inc.*		48,534
	4,958	Covidien PLC (Ireland)		276,111
	964	DaVita, Inc.*		84,919
	1,427	DENTSPLY International, Inc.		53,570
	1,153	Edwards Lifesciences Corp.*		99,562
	10,228	Eli Lilly & Co.		378,538
	5,304	Express Scripts, Inc.*		300,949
	2,872	Forest Laboratories, Inc.*		95,236
	7,984	Gilead Sciences, Inc.*		310,099
	1,673	Hospira, Inc.*		94,909
	1,692	Humana, Inc.		128,795
	390	Intuitive Surgical, Inc.*		136,383
	27,416	Johnson & Johnson		1,801,780
	1,004	Laboratory Corp. of America Holdings*		96,856
	1,807	Life Technologies Corp.*		99,746
	2,553	McKesson Corp.		211,925
	4,061	Medco Health Solutions, Inc.*		240,939
	10,736	Medtronic, Inc.		448,228
	30,902	Merck & Co., Inc.		1,110,927
	4,388	Mylan, Inc.*		109,349
	961	Patterson Cos., Inc.		33,356
	1,138	PerkinElmer, Inc.		32,171
	80,137	Pfizer, Inc.		1,679,671
	1,564	Quest Diagnostics, Inc.		88,178
	3,268	St. Jude Medical, Inc.		174,642
	3,378	Stryker Corp.		199,302
	4,879	Tenet Healthcare Corp.*		33,811
	3,922	Thermo Fisher Scientific, Inc.*		235,281
	10,980	UnitedHealth Group, Inc.		540,545

See Notes to Financial Statements.

Schedule of Investments (Continued)

PowerShares S&P 500 BuyWrite Portfolio

April 30, 2011

Number of Shares			Value
		Common Stocks and Other Equity Interests(<) (Continued)
	1,205	Varian Medical Systems, Inc.*	$	84,591
	917	Waters Corp.*		89,866
	1,263	Watson Pharmaceuticals, Inc.*		78,331
	3,770	WellPoint, Inc.		289,498
	1,929	Zimmer Holdings, Inc.*		125,867
				14,050,217
		Industrials—11.6%
	7,135	3M Co.		693,593
	1,073	Avery Dennison Corp.		44,787
	7,392	Boeing Co. (The)		589,734
	1,667	C.H. Robinson Worldwide, Inc.		133,660
	6,403	Caterpillar, Inc.		738,970
	1,269	Cintas Corp.		39,402
	3,718	CSX Corp.		292,569
	1,986	Cummins, Inc.		238,677
	5,427	Danaher Corp.		299,787
	4,227	Deere & Co.		412,132
	1,873	Dover Corp.		127,439
	499	Dun & Bradstreet Corp. (The)		41,008
	3,417	Eaton Corp.		182,912
	7,571	Emerson Electric Co.		460,014
	1,232	Equifax, Inc.		46,237
	2,130	Expeditors International of Washington, Inc.		115,595
	1,480	Fastenal Co.		99,293
	3,163	FedEx Corp.		302,604
	559	Flowserve Corp.		70,781
	1,773	Fluor Corp.		124,004
	3,742	General Dynamics Corp.		272,492
	106,431	General Electric Co.		2,176,514
	1,261	Goodrich Corp.		111,435
	7,872	Honeywell International, Inc.		482,003
	5,004	Illinois Tool Works, Inc.		292,284
	3,309	Ingersoll-Rand PLC (Ireland)		167,105
	2,010	Iron Mountain, Inc.		64,018
	1,844	ITT Corp.		106,565
	1,269	Jacobs Engineering Group, Inc.*		62,955
	1,052	Joy Global, Inc.		106,199
	1,136	L-3 Communications Holdings, Inc.		91,096
	2,880	Lockheed Martin Corp.		228,240
	3,595	Masco Corp.		48,245
	3,575	Norfolk Southern Corp.		266,981
	2,925	Northrop Grumman Corp.		186,059
	3,668	PACCAR, Inc.		194,807
	1,159	Pall Corp.		67,732
	1,625	Parker Hannifin Corp.		153,270
	2,046	Pitney Bowes, Inc.		50,250
	1,440	Precision Castparts Corp.		222,509
	2,164	Quanta Services, Inc.*		46,916
	2,073	R.R. Donnelley & Sons Co.		39,097
	3,611	Raytheon Co.		175,314

Number of Shares			Value
		Common Stocks and Other Equity Interests(<) (Continued)
	3,085	Republic Services, Inc.	$	97,548
	1,469	Robert Half International, Inc.		44,555
	1,429	Rockwell Automation, Inc.		124,509
	1,557	Rockwell Collins, Inc.		98,247
	957	Roper Industries, Inc.		82,771
	514	Ryder System, Inc.		27,499
	585	Snap-On, Inc.		36,135
	7,505	Southwest Airlines Co.		88,184
	857	Stericycle, Inc.*		78,227
	2,771	Textron, Inc.		72,323
	4,756	Tyco International Ltd. (Switzerland)		231,807
	4,929	Union Pacific Corp.		510,004
	9,894	United Parcel Service, Inc., Class B		741,753
	9,226	United Technologies Corp.		826,465
	586	W.W. Grainger, Inc.		88,838
	4,774	Waste Management, Inc.		188,382
				14,002,531
		Information Technology—18.7%
	5,081	Adobe Systems, Inc.*		170,468
	5,779	Advanced Micro Devices, Inc.*		52,589
	1,879	Akamai Technologies, Inc.*		64,713
	3,212	Altera Corp.		156,424
	1,766	Amphenol Corp., Class A		98,737
	3,008	Analog Devices, Inc.		121,252
	9,234	Apple, Inc.*		3,215,556
	13,246	Applied Materials, Inc.		207,830
	2,298	Autodesk, Inc.*		103,364
	4,984	Automatic Data Processing, Inc.		270,880
	1,793	BMC Software, Inc.*		90,062
	4,774	Broadcom Corp., Class A		167,949
	3,841	CA, Inc.		94,450
	55,408	Cisco Systems, Inc.		972,964
	1,884	Citrix Systems, Inc.*		158,897
	3,054	Cognizant Technology Solutions Corp., Class A*		253,177
	1,557	Computer Sciences Corp.		79,376
	2,196	Compuware Corp.*		24,881
	15,719	Corning, Inc.		329,156
	16,860	Dell, Inc.*		261,499
	11,471	eBay, Inc.*		394,602
	3,356	Electronic Arts, Inc.*		67,724
	20,768	EMC Corp.*		588,565
	811	F5 Networks, Inc.*		82,203
	2,673	Fidelity National Information Services, Inc.		88,476
	543	First Solar, Inc.*		75,787
	1,467	Fiserv, Inc.*		89,942
	1,601	FLIR Systems, Inc.		56,387
	2,514	Google, Inc., Class A*		1,367,867
	1,284	Harris Corp.		68,219
	21,796	Hewlett-Packard Co.		879,905

See Notes to Financial Statements.

Schedule of Investments (Continued)

PowerShares S&P 500 BuyWrite Portfolio

April 30, 2011

Number of Shares			Value
		Common Stocks and Other Equity Interests(<) (Continued)
	55,007	Intel Corp.	$	1,275,612
	12,224	International Business Machines Corp.		2,085,170
	2,734	Intuit, Inc.*		151,901
	1,968	Jabil Circuit, Inc.		39,045
	2,251	JDS Uniphase Corp.*		46,911
	5,370	Juniper Networks, Inc.*		205,832
	1,679	KLA-Tencor Corp.		73,708
	789	Lexmark International, Inc., Class A*		25,445
	2,278	Linear Technology Corp.		79,274
	6,185	LSI Corp.*		45,336
	970	MasterCard, Inc., Class A		267,613
	2,312	MEMC Electronic Materials, Inc.*		27,351
	1,892	Microchip Technology, Inc.		77,648
	8,611	Micron Technology, Inc.*		97,218
	74,112	Microsoft Corp.		1,928,394
	1,387	Molex, Inc.		37,449
	1,307	Monster Worldwide, Inc.*		21,448
	2,954	Motorola Mobility Holdings, Inc.*		76,981
	3,380	Motorola Solutions, Inc.*		155,074
	2,421	National Semiconductor Corp.		58,395
	3,693	NetApp, Inc.*		191,962
	905	Novellus Systems, Inc.*		29,050
	5,833	NVIDIA Corp.*		116,660
	38,994	Oracle Corp.		1,405,734
	3,232	Paychex, Inc.		105,719
	16,476	QUALCOMM, Inc.		936,496
	1,937	Red Hat, Inc.*		91,949
	2,949	SAIC, Inc.*		51,313
	1,187	Salesforce.com, Inc.*		164,518
	2,376	SanDisk Corp.*		116,757
	7,663	Symantec Corp.*		150,578
	3,641	Tellabs, Inc.		17,914
	1,689	Teradata Corp.*		94,449
	1,861	Teradyne, Inc.*		29,962
	11,767	Texas Instruments, Inc.		418,082
	1,631	Total System Services, Inc.		30,744
	1,741	VeriSign, Inc.		64,347
	4,865	Visa, Inc., Class A		380,054
	2,326	Western Digital Corp.*		92,575
	6,493	Western Union Co. (The)		137,976
	14,050	Xerox Corp.		141,765
	2,621	Xilinx, Inc.		91,368
	13,146	Yahoo!, Inc.*		233,342
				22,523,020
		Materials—3.8%
	2,158	Air Products & Chemicals, Inc.		206,132
	752	Airgas, Inc.		52,226
	1,107	AK Steel Holding Corp.		17,989
	10,669	Alcoa, Inc.		181,373
	991	Allegheny Technologies, Inc.		71,352

Number of Shares			Value
		Common Stocks and Other Equity Interests(<) (Continued)
	1,699	Ball Corp.	$	63,390
	1,075	Bemis Co., Inc.		33,691
	716	CF Industries Holdings, Inc.		101,350
	1,360	Cliffs Natural Resources, Inc.		127,459
	11,725	Dow Chemical Co. (The)		480,608
	9,253	E.I. du Pont de Nemours & Co.		525,478
	710	Eastman Chemical Co.		76,148
	2,336	Ecolab, Inc.		123,247
	718	FMC Corp.		63,385
	9,502	Freeport-McMoRan Copper & Gold, Inc.		522,895
	806	International Flavors & Fragrances, Inc.		51,197
	4,415	International Paper Co.		136,335
	1,690	MeadWestvaco Corp.		56,936
	5,388	Monsanto Co.		366,600
	4,952	Newmont Mining Corp.		290,237
	3,172	Nucor Corp.		148,957
	1,644	Owens-Illinois, Inc.*		48,777
	1,612	PPG Industries, Inc.		152,608
	3,045	Praxair, Inc.		324,049
	1,599	Sealed Air Corp.		41,206
	894	Sherwin-Williams Co. (The)		73,567
	1,224	Sigma-Aldrich Corp.		86,390
	904	Titanium Metals Corp.*		18,107
	1,443	United States Steel Corp.		68,846
	1,296	Vulcan Materials Co.		58,579
				4,569,114
		Telecommunication Services—3.1%
	3,992	American Tower Corp., Class A*		208,821
	59,251	AT&T, Inc.		1,843,891
	5,980	CenturyLink, Inc.		243,864
	9,977	Frontier Communications Corp.		82,510
	2,649	MetroPCS Communications, Inc.*		44,583
	30,021	Sprint Nextel Corp.*		155,509
	28,346	Verizon Communications, Inc.		1,070,912
	5,063	Windstream Corp.		64,857
				3,714,947
		Utilities—3.3%
	6,648	AES Corp. (The)*		88,019
	2,415	Ameren Corp.		70,784
	4,827	American Electric Power Co., Inc.		176,089
	4,265	CenterPoint Energy, Inc.		79,329
	2,531	CMS Energy Corp.		50,114
	2,931	Consolidated Edison, Inc.		152,764
	2,006	Constellation Energy Group, Inc.		73,058
	5,831	Dominion Resources, Inc.		270,675
	1,701	DTE Energy Co.		85,952
	13,344	Duke Energy Corp.		248,866
	3,271	Edison International		128,452
	1,797	Entergy Corp.		125,287
	6,645	Exelon Corp.		280,087

See Notes to Financial Statements.

Schedule of Investments (Continued)

PowerShares S&P 500 BuyWrite Portfolio

April 30, 2011

Number of Shares			Value
		Common Stocks and Other Equity Interests(<) (Continued)
	4,199	FirstEnergy Corp.	$	167,792
	783	Integrys Energy Group, Inc.		40,998
	4,226	NextEra Energy, Inc.		239,065
	457	Nicor, Inc.		25,331
	2,804	NiSource, Inc.		54,538
	1,772	Northeast Utilities		63,083
	2,485	NRG Energy, Inc.*		60,137
	1,074	ONEOK, Inc.		75,116
	2,260	Pepco Holdings, Inc.		43,550
	3,978	PG&E Corp.		183,306
	1,092	Pinnacle West Capital Corp.		47,382
	5,666	PPL Corp.		155,418
	2,947	Progress Energy, Inc.		139,835
	5,080	Public Service Enterprise Group, Inc.		163,424
	1,143	SCANA Corp.		47,457
	2,415	Sempra Energy		133,066
	8,490	Southern Co.		331,450
	2,157	TECO Energy, Inc.		41,565
	2,347	Wisconsin Energy Corp.		73,250
	4,846	Xcel Energy, Inc.		117,903
				4,033,142
		Total Investments (Cost $92,452,986)—103.5%		124,698,485
		Liabilities in excess of other assets—(3.5%)		(4,187,161	)
		Net Assets—100.0%	$	120,511,324

Investment Abbreviations:

REIT—Real Estate Investment Trust

Notes to Schedule of Investments:

* Non-income producing security.

(<) A portion of the securities in the portfolio are subject to call options written. In addition, the unrealized appreciation (depreciation) of the call options written were based on Level 1 inputs. See Note 2H and Note 3.

(~) 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 6.

See Notes to Financial Statements.

Schedule of Investments

PowerShares S&P 500 High Quality Portfolio

April 30, 2011

Number of Shares			Value
		Common Stocks and Other Equity Interests—99.9%
		Consumer Discretionary—18.7%
	19,821	Darden Restaurants, Inc.	$	930,992
	26,943	Family Dollar Stores, Inc.		1,460,580
	41,779	Gap, Inc. (The)		970,944
	17,455	Genuine Parts Co.		937,334
	11,751	Harley-Davidson, Inc.		437,842
	9,924	Hasbro, Inc.		464,840
	24,815	Home Depot, Inc. (The)		921,629
	23,063	Johnson Controls, Inc.		945,583
	17,330	Lowe's Cos., Inc.		454,913
	13,444	Marriott International, Inc., Class A		474,573
	12,222	McDonald's Corp.		957,105
	27,068	News Corp., Class A		482,352
	18,016	NIKE, Inc., Class B		1,483,077
	10,058	Nordstrom, Inc.		478,258
	28,533	Omnicom Group, Inc.		1,403,538
	3,760	Polo Ralph Lauren Corp.		491,695
	19,751	Ross Stores, Inc.		1,455,451
	28,150	Target Corp.		1,382,165
	7,566	Tiffany & Co.		525,383
	27,503	TJX Cos., Inc. (The)		1,474,711
	9,556	VF Corp.		960,951
	22,262	Walt Disney Co. (The)		959,492
	18,748	Yum! Brands, Inc.		1,005,643
				21,059,051
		Consumer Staples—23.5%
	35,425	Altria Group, Inc.		950,807
	26,357	Archer-Daniels-Midland Co.		975,736
	33,220	Avon Products, Inc.		976,004
	13,634	Brown-Forman Corp., Class B		979,739
	13,968	Campbell Soup Co.		469,185
	13,393	Clorox Co. (The)		932,956
	20,727	Coca-Cola Co. (The)		1,398,243
	17,156	Colgate-Palmolive Co.		1,447,109
	19,650	ConAgra Foods, Inc.		480,442
	6,086	Costco Wholesale Corp.		492,479
	38,487	CVS Caremark Corp.		1,394,769
	25,669	General Mills, Inc.		990,310
	50,284	Hormel Foods Corp.		1,478,852
	19,083	J.M. Smucker Co. (The)		1,432,561
	25,850	Kellogg Co.		1,480,430
	14,205	Kimberly-Clark Corp.		938,382
	14,672	Kraft Foods, Inc., Class A		492,686
	29,690	McCormick & Co., Inc.		1,458,373
	9,932	Molson Coors Brewing Co., Class B		484,185
	21,211	PepsiCo, Inc.		1,461,226
	22,523	Procter & Gamble Co. (The)		1,461,743
	49,670	Sysco Corp.		1,435,960
	33,998	Walgreen Co.		1,452,395

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	26,535	Wal-Mart Stores, Inc.	$	1,458,894
				26,523,466
		Energy—2.6%
	3,574	Apache Corp.		476,664
	4,240	Chevron Corp.		464,026
	16,222	Exxon Mobil Corp.		1,427,536
	4,482	Occidental Petroleum Corp.		512,248
				2,880,474
		Financials—8.7%
	17,323	Aflac, Inc.		973,379
	10,039	American Express Co.		492,714
	3,939	AvalonBay Communities, Inc. REIT		498,717
	9,001	Capital One Financial Corp.		492,625
	14,966	Chubb Corp. (The)		975,634
	28,233	Cincinnati Financial Corp.		894,421
	17,568	Federated Investors, Inc., Class B		452,903
	2,887	Goldman Sachs Group, Inc. (The)		435,966
	8,949	Health Care REIT, Inc. REIT		481,188
	94,174	Hudson City Bancorp, Inc.		897,478
	26,495	Kimco Realty Corp. REIT		517,712
	8,914	Northern Trust Corp.		445,611
	10,087	State Street Corp.		469,550
	6,848	T. Rowe Price Group, Inc.		439,984
	13,944	Torchmark Corp.		933,133
	14,695	Wells Fargo & Co.		427,771
				9,828,786
		Health Care—10.0%
	18,412	Abbott Laboratories		958,160
	11,561	AmerisourceBergen Corp.		469,839
	17,302	Baxter International, Inc.		984,484
	11,510	Becton, Dickinson and Co.		989,169
	9,306	C.R. Bard, Inc.		993,415
	12,735	DENTSPLY International, Inc.		478,072
	23,448	Johnson & Johnson		1,541,003
	5,923	McKesson Corp.		491,668
	23,435	Medtronic, Inc.		978,411
	19,830	Mylan, Inc.*		494,164
	23,353	Stryker Corp.		1,377,827
	31,420	UnitedHealth Group, Inc.		1,546,807
				11,303,019
		Industrials—20.6%
	14,960	3M Co.		1,454,262
	18,771	C.H. Robinson Worldwide, Inc.		1,505,059
	12,699	Caterpillar, Inc.		1,465,591
	15,397	Cintas Corp.		478,077
	27,047	Danaher Corp.		1,494,076
	4,847	Deere & Co.		472,582
	7,141	Dover Corp.		485,874
	8,566	Eaton Corp.		458,538

See Notes to Financial Statements.

Schedule of Investments (Continued)

PowerShares S&P 500 High Quality Portfolio

April 30, 2011

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	24,144	Emerson Electric Co.	$	1,466,989
	27,643	Expeditors International of Washington, Inc.		1,500,186
	13,808	Fastenal Co.		926,379
	18,713	General Dynamics Corp.		1,362,681
	23,022	General Electric Co.		470,800
	17,107	Illinois Tool Works, Inc.		999,220
	7,902	ITT Corp.		456,656
	11,689	L-3 Communications Holdings, Inc.		937,341
	6,867	Norfolk Southern Corp.		512,827
	9,756	Parker Hannifin Corp.		920,186
	14,608	Rockwell Collins, Inc.		921,765
	10,881	Roper Industries, Inc.		941,098
	9,716	Union Pacific Corp.		1,005,314
	16,443	United Technologies Corp.		1,472,964
	9,742	W.W. Grainger, Inc.		1,476,887
				23,185,352
		Information Technology—4.7%
	17,725	Automatic Data Processing, Inc.		963,354
	9,152	Harris Corp.		486,246
	11,416	Hewlett-Packard Co.		460,864
	5,669	International Business Machines Corp.		967,018
	13,923	Linear Technology Corp.		484,520
	13,858	Oracle Corp.		499,581
	29,084	Paychex, Inc.		951,337
	25,274	Total System Services, Inc.		476,415
				5,289,335
		Materials—6.8%
	10,103	Air Products & Chemicals, Inc.		965,039
	6,942	Airgas, Inc.		482,122
	12,908	Ball Corp.		481,597
	27,066	Ecolab, Inc.		1,428,002
	7,334	International Flavors & Fragrances, Inc.		465,856
	13,632	Praxair, Inc.		1,450,717
	10,937	Sherwin-Williams Co. (The)		900,006
	21,510	Sigma-Aldrich Corp.		1,518,176
				7,691,515
		Utilities—4.3%
	14,017	Entergy Corp.		977,265
	12,515	FirstEnergy Corp.		500,099
	16,600	NextEra Energy, Inc.		939,062
	7,103	ONEOK, Inc.		496,784
	17,962	PPL Corp.		492,698
	8,691	Sempra Energy		478,874
	12,102	Southern Co.		472,462

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	15,450	Wisconsin Energy Corp.	$	482,195
				4,839,439
		Total Common Stocks and Other Equity Interests (Cost $93,058,529)		112,600,437
		Money Market Fund—0.1%
	147,761	Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $147,761)		147,761
		Total Investments (Cost $93,206,290—100.0%		112,748,198
		Liabilities in excess of other assets—(0.0%)		(53,462	)
		Net Assets—100.0%	$	112,694,736

Investment Abbreviations:

REIT—Real Estate Investment Trust

Notes to Schedule of Investments:

* Non-income producing security.

See Notes to Financial Statements.

Schedule of Investments

PowerShares Water Resources Portfolio

April 30, 2011

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Electronics—11.1%
	1,274,913	Badger Meter, Inc.(~)	$	48,331,952
	951,549	Itron, Inc.*		51,792,812
	1,043,792	Watts Water Technologies, Inc., Class A		40,394,750
				140,519,514
		Engineering & Construction—15.0%
	2,124,553	Aecom Technology Corp.*		57,915,315
	1,526,256	Insituform Technologies, Inc., Class A*		38,629,540
	1,205,041	Layne Christensen Co.(~)*		35,862,020
	1,253,051	URS Corp.*		56,074,032
				188,480,907
		Environmental Control—12.4%
	2,615,960	Calgon Carbon Corp.*		44,889,874
	1,951,342	Energy Recovery, Inc.*		6,029,647
	536,866	Met-Pro Corp.		6,383,337
	1,527,960	Nalco Holding Co.		44,631,711
	2,314,854	Tetra Tech, Inc.*		54,676,851
				156,611,420
		Hand/Machine Tools—3.3%
	908,294	Franklin Electric Co., Inc.		40,973,142
		Machinery-Diversified—17.8%
	335,210	Flowserve Corp.		42,444,290
	1,027,457	Gorman-Rupp Co. (The)(~)		41,560,636
	924,711	IDEX Corp.		43,387,440
	746,586	Lindsay Corp.(~)		54,739,685
	493,353	Roper Industries, Inc.		42,670,101
				224,802,152
		Metal Fabricate/Hardware—9.6%
	9,182,450	Mueller Water Products, Inc., Class A(~)		40,402,780
	837,450	Northwest Pipe Co.(~)*		20,149,047
	573,045	Valmont Industries, Inc.		60,341,639
				120,893,466
		Miscellaneous Manufacturing—17.3%
	545,702	Ameron International Corp.(~)		38,384,679
	978,320	Danaher Corp.		54,042,397
	694,171	ITT Corp.		40,116,142
	719,039	Pall Corp.		42,020,639
	1,081,159	Pentair, Inc.		43,419,345
				217,983,202
		Water—13.5%
	669,331	American States Water Co.		23,366,345
	825,102	American Water Works Co., Inc.		24,241,497
	1,014,767	Aqua America, Inc.		22,882,996
	419,333	Cia de Saneamento Basico do Estado de Sao Paulo ADR (Brazil)		24,539,367
	1,310,310	Consolidated Water Co. Ltd. (Cayman Islands)(~)		12,854,141

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	1,860,464	Veolia Environnement SA ADR (France)	$	62,381,358
				170,265,704
		Total Common Stocks and Other Equity Interests (Cost $1,116,859,688)		1,260,529,507
		Money Market Fund—0.0%
	386,714	Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $386,714)		386,714
		Total Investments (Cost $1,117,246,402)—100.0%		1,260,916,221
		Liabilities in excess of other assets—(0.0%)		(268,192	)
		Net Assets—100.0%	$	1,260,648,029

Investment Abbreviations:

ADR—American Depositary Receipt

Notes to Schedule of Investments:

(~) Affiliated Investment. See Note 6.

* Non-income producing security.

See Notes to Financial Statements.

Schedule of Investments

PowerShares WilderHill Clean Energy Portfolio

April 30, 2011

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Auto Manufacturers—2.4%
	468,110	Tesla Motors, Inc.*	$	12,919,836
		Auto Parts & Equipment—4.7%
	740,381	Amerigon, Inc.*		12,623,496
	423,975	Fuel Systems Solutions, Inc.*		12,602,657
				25,226,153
		Building Materials—0.6%
	2,093,000	Broadwind Energy, Inc.*		3,453,450
		Chemicals—8.2%
	105,937	Air Products & Chemicals, Inc.		10,119,102
	304,955	OM Group, Inc.*		11,051,569
	201,992	Sociedad Quimica y Minera de Chile SA ADR (Chile)		12,327,572
	853,526	Zoltek Cos., Inc.*		10,967,809
				44,466,052
		Commercial Services—2.0%
	505,832	Quanta Services, Inc.*		10,966,438
		Computers—4.2%
	1,178,833	Echelon Corp.*		11,210,702
	646,679	Maxwell Technologies, Inc.*		11,530,287
				22,740,989
		Electric—10.4%
	824,143	Ameresco, Inc., Class A*		13,276,944
	582,503	Calpine Corp.*		9,756,925
	109,767	CPFL Energia SA ADR (Brazil)		9,707,793
	244,338	IDACORP, Inc.		9,580,493
	454,042	Ormat Technologies, Inc.		11,305,646
	2,496,233	U.S. Geothermal, Inc.*		2,496,233
				56,124,034
		Electrical Components & Equipment—24.5%
	1,391,757	A123 Systems, Inc.*		8,406,212
	4,076,247	Active Power, Inc.(~)*		9,905,280
	3,031,640	Advanced Battery Technologies, Inc.*		5,214,421
	461,554	American Superconductor Corp.*		5,469,415
	980,289	Canadian Solar, Inc. (China)*		10,577,318
	1,520,049	China BAK Battery, Inc.*		2,386,477
	1,089,416	China Ming Yang Wind Power Group Ltd. ADR (Cayman Islands)*		9,379,872
	3,639,989	Ener1, Inc.*		9,209,172
	2,047,628	Energy Conversion Devices, Inc.*		4,095,256
	1,261,136	Power-One, Inc.*		10,416,984
	3,031,640	Satcon Technology Corp.*		9,701,248
	674,877	SunPower Corp., Class A*		14,692,072
	1,199,541	Suntech Power Holdings Co. Ltd. ADR ( China)*		10,759,883
	211,861	Universal Display Corp.*		11,639,643

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	868,140	Yingli Green Energy Holding Co. Ltd. ADR (China)*	$	10,877,794
				132,731,047
		Electronics—2.6%
	209,336	Itron, Inc.*		11,394,159
	928,627	UQM Technologies, Inc.*		2,590,869
				13,985,028
		Energy-Alternate Sources—12.8%
	349,475	Amyris, Inc.*		9,236,624
	1,015,255	Ascent Solar Technologies, Inc.*		1,634,561
	1,214,682	Ballard Power Systems, Inc. (Canada)*		2,502,245
	605,993	Comverge, Inc.*		2,339,133
	72,778	First Solar, Inc.*		10,157,626
	5,335,078	FuelCell Energy, Inc.*		9,122,983
	507,626	Gevo, Inc.*		9,822,563
	1,602,829	JA Solar Holdings Co. Ltd. ADR (China)*		11,011,435
	514,351	Ocean Power Technologies, Inc.*		2,504,889
	390,059	Trina Solar Ltd. ADR (Cayman Islands)*		11,112,781
				69,444,840
		Food—1.7%
	742,253	Cosan Ltd., Class A (Brazil)		9,241,050
		Metal Fabricate/Hardware—0.4%
	858,328	China Wind Systems, Inc.*		2,059,987
		Mining—5.0%
	196,065	Molycorp, Inc.*		14,371,564
	892,833	Rare Element Resources Ltd. (Canada)*		12,901,437
				27,273,001
		Miscellaneous Manufacturing—4.1%
	190,433	Polypore International, Inc.*		11,763,046
	644,927	STR Holdings, Inc.*		10,621,948
				22,384,994
		Semiconductors—16.4%
	266,977	Aixtron SE ADR (Germany)		11,333,174
	717,052	Applied Materials, Inc.		11,250,546
	245,094	Cree, Inc.*		9,985,130
	991,315	GT Solar International, Inc.*		11,072,989
	338,213	International Rectifier Corp.*		11,688,641
	872,087	MEMC Electronic Materials, Inc.*		10,316,789
	1,182,612	Renesola Ltd. ADR (British Virgin Islands)*		10,856,378
	421,938	Rubicon Technology, Inc.*		12,029,452
				88,533,099
		Total Common Stocks and Other Equity Interests (Cost $608,918,739)		541,549,998

See Notes to Financial Statements.

Schedule of Investments (Continued)

PowerShares WilderHill Clean Energy Portfolio

April 30, 2011

Number of Shares			Value
		Money Market Fund—0.1%
	467,305	Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $467,305)	$	467,305
		Total Investments (Cost $609,386,044)—100.1%		542,017,303
		Liabilities in excess of other assets—(0.1%)		(545,213	)
		Net Assets—100.0%	$	541,472,090

Investment Abbreviations:

ADR—American Depositary Receipt

Notes to Schedule of Investments:

(~) Affiliated Investment. See Note 6.

* Non-income producing security.

See Notes to Financial Statements.

Schedule of Investments

PowerShares WilderHill Progressive Energy Portfolio

April 30, 2011

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Agriculture—2.1%
	31,749	Andersons, Inc. (The)	$	1,576,338
		Auto Manufacturers—2.0%
	55,169	Tata Motors Ltd. ADR (India)		1,513,837
		Auto Parts & Equipment—8.6%
	138,127	Exide Technologies*		1,386,795
	36,931	Johnson Controls, Inc.		1,514,171
	34,910	Tenneco, Inc.*		1,613,191
	78,391	Westport Innovations, Inc. (Canada)*		1,983,293
				6,497,450
		Building Materials—2.2%
	43,848	Owens Corning*		1,659,208
		Chemicals—4.4%
	47,859	Methanex Corp. (Canada)		1,544,888
	31,366	Rockwood Holdings, Inc.*		1,779,707
				3,324,595
		Computers—2.1%
	50,412	Telvent GIT SA (Spain)*		1,552,186
		Electric—7.9%
	97,677	Centrais Eletricas Brasileiras SA ADR (Brazil)		1,447,573
	78,926	Companhia Energetica de Minas Gerais ADR (Brazil)		1,647,186
	75,117	EnerNOC, Inc.*		1,345,345
	69,903	Enersis SA ADR (Chile)		1,493,128
				5,933,232
		Electrical Components & Equipment—13.6%
	74,559	A-Power Energy Generation Systems Ltd.*		301,964
	25,439	Emerson Electric Co.		1,545,674
	21,902	Energizer Holdings, Inc.*		1,654,258
	40,177	EnerSys*		1,522,307
	34,619	General Cable Corp.*		1,679,021
	75,138	GrafTech International Ltd.*		1,743,202
	77,414	Harbin Electric, Inc.*		1,449,190
	107,647	SmartHeat, Inc.*		316,482
				10,212,098
		Electronics—7.3%
	92,877	Elster Group SE ADR (Germany)*		1,437,736
	46,827	Koninklijke Philips Electronics NV (Netherlands)		1,380,928
	95,939	SemiLEDs Corp.*		1,090,826
	43,431	Woodward, Inc.		1,609,119
				5,518,609
		Energy-Alternate Sources—4.4%
	102,881	Clean Energy Fuels Corp.*		1,753,092

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	89,167	Covanta Holding Corp.	$	1,530,998
				3,284,090
		Engineering & Construction—5.9%
	37,776	Chicago Bridge & Iron Co. NV (Netherlands)		1,531,439
	42,466	Foster Wheeler AG (Switzerland)*		1,510,516
	61,278	McDermott International, Inc.*		1,414,909
				4,456,864
		Environmental Control—2.6%
	223,319	EnergySolutions, Inc.		1,261,752
	41,299	Fuel Tech, Inc.*		334,935
	291,078	Rentech, Inc.*		323,097
				1,919,784
		Hand/Machine Tools—2.1%
	20,378	Regal-Beloit Corp.		1,544,449
		Machinery-Diversified—2.2%
	66,183	Altra Holdings, Inc.*		1,680,386
		Mining—5.6%
	48,481	Cameco Corp. (Canada)		1,429,220
	566,299	Denison Mines Corp. (Canada)*		1,325,140
	320,570	USEC, Inc.*		1,468,210
				4,222,570
		Miscellaneous Manufacturing—15.0%
	33,689	A.O. Smith Corp.		1,481,305
	23,452	Cooper Industries PLC (Ireland)		1,546,659
	28,171	Eaton Corp.		1,507,994
	39,399	ESCO Technologies, Inc.		1,445,155
	78,918	Hexcel Corp.*		1,699,105
	36,697	LSB Industries, Inc.*		1,480,724
	18,736	PMFG, Inc.*		429,429
	11,499	Siemens AG ADR (Germany)		1,678,164
				11,268,535
		Oil & Gas—8.0%
	44,023	Chesapeake Energy Corp.		1,482,254
	26,423	Range Resources Corp.		1,491,578
	26,773	Sasol Ltd. ADR (South Africa)		1,548,015
	34,204	Southwestern Energy Co.*		1,500,188
				6,022,035
		Semiconductors—2.1%
	30,602	Veeco Instruments, Inc.*		1,564,680
		Telecommunications—1.9%
	67,850	Corning, Inc.		1,420,779
		Total Common Stocks and Other Equity Interests (Cost $59,838,570)		75,171,725

See Notes to Financial Statements.

Schedule of Investments (Continued)

PowerShares WilderHill Progressive Energy Portfolio

April 30, 2010

Number of Shares			Value
		Money Market Fund—0.1%
	79,466	Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $79,466)	$	79,466
		Total Investments (Cost $59,918,036)—100.1%		75,251,191
		Liabilities in excess of other assets—(0.1%)		(75,934	)
		Net Assets—100.0%	$	75,175,257

Investment Abbreviations:

ADR—American Depositary Receipt

Notes to Schedule of Investments:

* Non-income producing security.

See Notes to Financial Statements.

Statements of Assets and Liabilities

April 30, 2011

	PowerShares Aerospace & Defense Portfolio			PowerShares Cleantech^TM Portfolio			PowerShares DWA Technical Leaders^TM Portfolio			PowerShares Global Listed Private Equity Portfolio			PowerShares Golden Dragon Halter USX China Portfolio			PowerShares Lux Nanotech Portfolio
ASSETS:
Unaffiliated investments, at value	$	108,110,954		$	162,582,190		$	451,258,032		$	489,392,549		$	446,242,891		$	38,484,305
Affiliated investments, at value (Note 6)		—			—			—			—			—			—
Total investments, at value		108,110,954			162,582,190			451,258,032			489,392,549			446,242,891			38,484,305
Cash		—			386			615			—			—			262
Foreign currencies, at value		—			17,476			—			27,873			—			—
Receivables:
Dividends		44,203			266,821			112,152			289,620			2,000,171			8,381
Expense waivers		7,506			7,235			—			48,345			8,258			10,341
Investments sold		—			—			1,318,815			54,247,343			283,614			—
Foreign tax reclaims		—			72,563			—			148,355			—			—
Shares sold		—			—			5,304,654			4,823,929			—			—
Other assets		—			—			—			2,500			—			—
Total Assets		108,162,663			162,946,671			457,994,268			548,980,514			448,534,934			38,503,289
LIABILITIES:
Due to custodian		7,670			—			—			72,374			1,029,111			—
Payables:
Shares repurchased		—			—			1,318,663			—			—			—
Investments purchased		—			199,865			5,305,551			54,816,809			571,318			—
Expense recapture		—			—			18,396			—			—			—
Open written options, at value		—			—			—			—			—			—
Accrued advisory fees		44,029			64,472			171,054			187,210			182,775			15,518
Accrued expenses		139,713			151,893			276,465			282,194			459,940			97,295
Total Liabilities		191,412			416,230			7,090,129			55,358,587			2,243,144			112,813
NET ASSETS	$	107,971,251		$	162,530,441		$	450,904,139		$	493,621,927		$	446,291,790		$	38,390,476
NET ASSETS CONSIST OF:
Shares of beneficial interest	$	144,215,812		$	196,593,012		$	552,847,954		$	482,155,877		$	588,023,395		$	105,173,223
Undistributed net investment income (loss)		151,517			102,024			(10,205	)		(7,350,386	)		293,268			(5,613	)
Undistributed net realized gain (loss)		(26,845,144	)		(65,199,837	)		(172,617,874	)		(77,189,896	)		(190,252,520	)		(67,232,931	)
Net unrealized appreciation (depreciation)		(9,550,934	)		31,035,242			70,684,264			96,006,332			48,227,647			455,797
Net Assets	$	107,971,251		$	162,530,441		$	450,904,139		$	493,621,927		$	446,291,790		$	38,390,476
Shares outstanding (unlimited amount authorized, $0.01 par value)		5,250,000			5,400,000			17,000,000			40,550,000			15,400,000			4,000,000
Net asset value	$	20.57		$	30.10		$	26.52		$	12.17		$	28.98		$	9.60
Share price	$	20.57		$	30.08		$	26.54		$	12.25		$	28.87		$	9.70
Unaffiliated investments, at cost	$	117,661,888		$	131,554,828		$	380,573,768		$	393,409,711		$	398,015,244		$	38,028,508
Affiliated investments, at cost	$	—		$	—		$	—		$	—		$	—		$	—
Total investments, at cost	$	117,661,888		$	131,554,828		$	380,573,768		$	393,409,711		$	398,015,244		$	38,028,508
Foreign currencies, at cost	$	—		$	16,785		$	—		$	27,319		$	—		$	—
Premium received	$	—		$	—		$	—		$	—		$	—		$	—

See Notes to Financial Statements.

	PowerShares Morningstar StockInvestor Core Portfolio			PowerShares S&P 500 BuyWrite Portfolio			PowerShares S&P 500^® High Quality Portfolio			PowerShares Water Resources Portfolio			PowerShares WilderHill Clean Energy Portfolio			PowerShares WilderHill Progressive Energy Portfolio
ASSETS:
Unaffiliated investments, at value	$	19,874,547		$	124,583,536		$	112,748,198		$	968,631,281		$	532,112,023		$	75,251,191
Affiliated investments, at value (Note 6)		—			114,949			—			292,284,940			9,905,280			—
Total investments, at value		19,874,547			124,698,485			112,748,198			1,260,916,221			542,017,303			75,251,191
Cash		23,844			—			329			—			—			284
Foreign currencies, at value		—			—			—			—			—			—
Receivables:
Dividends		23,367			133,486			126,260			1,159,333			257,981			44,334
Expense waivers		—			—			2,126			11,685			—			8,915
Investments sold		—			—			—			—			—			—
Foreign tax reclaims		—			—			—			34,150			—			4,346
Shares sold		—			—			—			—			—			—
Other assets		340			—			—			—			—			—
Total Assets		19,922,098			124,831,971			112,876,913			1,262,121,389			542,275,284			75,309,070
LIABILITIES:
Due to custodian		—			33,595			—			53,268			27,021			—
Payables:
Shares repurchased		—			—			—			—			—			—
Investments purchased		—			—			—			—			—			—
Expense recapture		14,814			—			—			—			4,812			—
Open written options, at value		—			4,213,440			—			—			—			—
Accrued advisory fees		7,930			73,612			45,039			513,693			222,654			29,920
Accrued expenses		82,880			—			137,138			906,399			548,707			103,893
Total Liabilities		105,624			4,320,647			182,177			1,473,360			803,194			133,813
NET ASSETS	$	19,816,474		$	120,511,324		$	112,694,736		$	1,260,648,029		$	541,472,090		$	75,175,257
NET ASSETS CONSIST OF:
Shares of beneficial interest	$	46,401,287		$	111,488,576		$	231,847,511		$	1,569,642,038		$	1,762,670,557		$	85,843,293
Undistributed net investment income (loss)		80,443			270,459			664,833			1,059,040			(29,770	)		19,901
Undistributed net realized gain (loss)		(30,329,311	)		(21,158,969	)		(139,359,516	)		(453,722,868	)		(1,153,799,956	)		(26,021,092	)
Net unrealized appreciation (depreciation)		3,664,055			29,911,258			19,541,908			143,669,819			(67,368,741	)		15,333,155
Net Assets	$	19,816,474		$	120,511,324		$	112,694,736		$	1,260,648,029		$	541,472,090		$	75,175,257
Shares outstanding (unlimited amount authorized, $0.01 par value)		900,000			5,600,000			7,700,000			62,250,000			52,300,000			2,450,000
Net asset value	$	22.02		$	21.52		$	14.64		$	20.25		$	10.35		$	30.68
Share price	$	22.01		$	21.52		$	14.64		$	20.24		$	10.33		$	30.70
Unaffiliated investments, at cost	$	16,210,492		$	92,369,431		$	93,206,290		$	864,607,298		$	599,193,333		$	59,918,036
Affiliated investments, at cost	$	—		$	83,555		$	—		$	252,639,104		$	10,192,711		$	—
Total investments, at cost	$	16,210,492		$	92,452,986		$	93,206,290		$	1,117,246,402		$	609,386,044		$	59,918,036
Foreign currencies, at cost	$	—		$	—		$	—		$	—		$	—		$	—
Premium received	$	—		$	1,879,199		$	—		$	—		$	—		$	—

Statements of Operations

Year Ended April 30, 2011

	PowerShares Aerospace & Defense Portfolio			PowerShares Cleantech^TM Portfolio			PowerShares DWA Technical Leaders^TM Portfolio			PowerShares Global Listed Private Equity Portfolio			PowerShares Golden Dragon Halter USX China Portfolio			PowerShares Lux Nanotech Portfolio
INVESTMENT INCOME:
Unaffiliated dividend income	$	1,842,493		$	1,449,048		$	2,287,041		$	9,841,369		$	7,296,049		$	296,709
Affiliated dividend income		—			—			—			—			—			—
Foreign withholding tax		(6,395	)		(139,813	)		(17,873	)		(514,917	)		(742,252	)		(1,601	)
Total Income		1,836,098			1,309,235			2,269,168			9,326,452			6,553,797			295,108
EXPENSES:
Advisory fees		557,769			731,402			1,276,503			1,457,668			2,161,604			225,001
Accounting & administration fees		68,240			68,240			74,979			75,639			105,520			68,241
Sub-licensing		66,931			109,710			255,300			291,533			416,872			45,000
Printing		41,197			39,695			48,007			53,783			107,001			22,305
Professional fees		37,381			39,178			40,654			62,303			58,248			33,068
Custodian & transfer agent fees		23,185			55,179			32,528			105,586			215,373			14,125
Trustees		8,583			9,518			11,708			12,887			18,700			6,420
Recapture (See Note 4)		—			2,114			41,073			14,597			11,120			—
Other expenses		14,063			25,191			25,002			43,869			22,726			12,810
Total Expenses		817,349			1,080,227			1,805,754			2,117,865			3,117,164			426,970
Less: Waivers		(81,095	)		(92,835	)		(18,650	)		(77,130	)		(105,598	)		(111,968	)
Net Expenses		736,254			987,392			1,787,104			2,040,735			3,011,566			315,002
Net Investment Income (Loss)		1,099,844			321,843			482,064			7,285,717			3,542,231			(19,894	)
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) from:
Investments		(3,186,072	)		(16,374,010	)		(12,612,013	)		5,388,756			(30,202,926	)		(11,525,252	)
Written options		—			—			—			—			—			—
In-kind redemptions		(3,331,744	)		12,531,485			46,624,580			2,791,577			45,138,364			3,527,837
Foreign currencies		—			(145,800	)		—			(247,061	)		—			—
Net realized gain (loss)		(6,517,816	)		(3,988,325	)		34,012,567			7,933,272			14,935,438			(7,997,415	)
Net change in unrealized appreciation (depreciation) on:
Investments		12,580,366			31,401,658			37,481,504			71,827,661			44,598,566			3,460,627
Written options		—			—			—			—			—			—
Foreign currencies		—			12,050			—			25,317			—			—
Net change in unrealized appreciation (depreciation)		12,580,366			31,413,708			37,481,504			71,852,978			44,598,566			3,460,627
Net realized and unrealized gain		6,062,550			27,425,383			71,494,071			79,786,250			59,534,004			(4,536,788	)
Net increase (decrease) in net assets resulting from operations		7,162,394			27,747,226			71,976,135			87,071,967			63,076,235			(4,556,682	)

See Notes to Financial Statements.

	PowerShares Morningstar StockInvestor Core Portfolio			PowerShares S&P 500 BuyWrite Portfolio			PowerShares S&P 500^® High Quality Portfolio			PowerShares Water Resources Portfolio			PowerShares WilderHill Clean Energy Portfolio			PowerShares WilderHill Progressive Energy Portfolio
INVESTMENT INCOME:
Unaffiliated dividend income	$	297,429		$	3,140,981		$	1,794,187		$	10,289,626		$	2,441,955		$	670,196
Affiliated dividend income		—			2,905			—			5,207,313			—			—
Foreign withholding tax		(4,978	)		(30	)		(435	)		(721,671	)		(58,757	)		(29,551	)
Total Income		292,451			3,143,856			1,793,752			14,775,268			2,383,198			640,645
EXPENSES:
Advisory fees		88,853			1,110,109			444,269			5,765,805			2,761,318			299,969
Accounting & administration fees		68,240			—			68,240			281,977			134,886			68,240
Sub-licensing		17,737			—			88,854			864,872			552,272			59,994
Printing		20,321			—			27,298			360,212			267,193			20,070
Professional fees		54,552			—			50,188			100,262			64,265			33,599
Custodian & transfer agent fees		16,534			—			20,850			96,519			51,736			15,871
Trustees		5,463			—			7,457			41,621			23,237			6,715
Recapture (See Note 4)		35,753			—			24,164			—			236,006			—
Other expenses		13,397			—			15,878			64,352			30,963			13,135
Total Expenses		320,850			1,110,109			747,198			7,575,620			4,121,876			517,593
Less: Waivers		(226,080	)		—			(281,303	)		(11,685	)		(256,014	)		(97,636	)
Net Expenses		94,770			1,110,109			465,895			7,563,935			3,865,862			419,957
Net Investment Income (Loss)		197,681			2,033,747			1,327,857			7,211,333			(1,482,664	)		220,688
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) from:
Investments		(2,028,179	)		2,273,557			(5,546,857	)		(29,893,638	)		(125,796,142	)		(3,742,524	)
Written options		—			(9,038,928	)		—			—			—			—
In-kind redemptions		1,837,507			18,713,626			13,098,297			51,777,837			57,106,333			8,190,141
Foreign currencies		—			—			—			—			—			—
Net realized gain (loss)		(190,672	)		11,948,255			7,551,440			21,884,199			(68,689,809	)		4,447,617
Net change in unrealized appreciation (depreciation) on:
Investments		1,581,696			(134,789	)		10,923,267			94,753,726			74,473,012			8,016,614
Written options		—			(3,061,141	)		—			—			—			—
Foreign currencies		—			—			—			—			—			—
Net change in unrealized appreciation (depreciation)		1,581,696			(3,195,930	)		10,923,267			94,753,726			74,473,012			8,016,614
Net realized and unrealized gain		1,391,024			8,752,325			18,474,707			116,637,925			5,783,203			12,464,231
Net increase (decrease) in net assets resulting from operations		1,588,705			10,786,072			19,802,564			123,849,258			4,300,539			12,684,919

Statements of Changes in Net Assets

	PowerShares Aerospace & Defense Portfolio						PowerShares Cleantech^TM Portfolio						PowerShares DWA Technical Leaders^TM Portfolio
	Year Ended April 30, 2011			Year Ended April 30, 2010			Year Ended April 30, 2011			Year Ended April 30, 2010			Year Ended April 30, 2011			Year Ended April 30, 2010
OPERATIONS:
Net investment income (loss)	$	1,099,844		$	1,375,666		$	321,843		$	157,312		$	482,064		$	460,102
Net realized gain (loss)		(6,517,816	)		(15,836,109	)		(3,988,325	)		(6,097,898	)		34,012,567			16,658,427
Net change in unrealized appreciation (depreciation)		12,580,366			60,642,047			31,413,708			40,138,039			37,481,504			34,450,917
Net increase in net assets resulting from operations		7,162,394			46,181,604			27,747,226			34,197,453			71,976,135			51,569,446
Undistributed net investment income (loss) included in the price of units issued and redeemed		(9,800	)		(44,617	)		70,849			(48,876	)		543,029			(137,660	)
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income		(1,074,351	)		(1,645,392	)		(38,868	)		(223,251	)		(639,994	)		(843,823	)
Return of capital		—			—			—			(75,171	)		—			—
Net realized gains		—			—			—			—			—			—
Total distributions to shareholders		(1,074,351	)		(1,645,392	)		(38,868	)		(298,422	)		(639,994	)		(843,823	)
SHAREHOLDER TRANSACTIONS:
Proceeds from shares sold		52,743,977			13,619,982			10,600,376			24,079,029			476,751,057			153,039,448
Value of shares repurchased		(88,198,319	)		(37,248,118	)		(35,799,445	)		(9,630,426	)		(256,554,369	)		(182,942,658	)
Net income equalization		9,800			44,617			(70,849	)		48,876			(543,029	)		137,660
Net increase (decrease) in net assets resulting from shares transactions		(35,444,542	)		(23,583,519	)		(25,269,918	)		14,497,479			219,653,659			(29,765,550	)
Increase (Decrease) in Net Assets		(29,366,299	)		20,908,076			2,509,289			48,347,634			291,532,829			20,822,413
NET ASSETS:
Beginning of year		137,337,550			116,429,474			160,021,152			111,673,518			159,371,310			138,548,897
End of year	$	107,971,251		$	137,337,550		$	162,530,441		$	160,021,152		$	450,904,139		$	159,371,310
Undistributed net investment income (loss) at end of year	$	151,517		$	126,024		$	102,024		$	(4,993	)	$	(10,205	)	$	120,278
CHANGES IN SHARES OUTSTANDING:
Shares sold		2,650,000			850,000			400,000			1,000,000			20,800,000			8,750,000
Shares repurchased		(4,600,000	)		(2,350,000	)		(1,400,000	)		(400,000	)		(11,300,000	)		(11,050,000	)
Shares outstanding, beginning of year		7,200,000			8,700,000			6,400,000			5,800,000			7,500,000			9,800,000
Shares outstanding, end of year		5,250,000			7,200,000			5,400,000			6,400,000			17,000,000			7,500,000

See Notes to Financial Statements.

	PowerShares Global Listed Private Equity Portfolio						PowerShares Golden Dragon Halter USX China Portfolio						PowerShares Lux Nanotech Portfolio
	Year Ended April 30, 2011			Year Ended April 30, 2010			Year Ended April 30, 2011			Year Ended April 30, 2010			Year Ended April 30, 2011			Year Ended April 30, 2010
OPERATIONS:
Net investment income (loss)	$	7,285,717		$	5,444,893		$	3,542,231		$	2,408,094		$	(19,894	)	$	(23,148	)
Net realized gain (loss)		7,933,272			7,645,151			14,935,438			(57,442,677	)		(7,997,415	)		(5,661,907	)
Net change in unrealized appreciation (depreciation)		71,852,978			40,022,330			44,598,566			187,055,633			3,460,627			20,148,115
Net increase in net assets resulting from operations		87,071,967			53,112,374			63,076,235			132,021,050			(4,556,682	)		14,463,060
Undistributed net investment income (loss) included in the price of units issued and redeemed		755,924			4,003,173			(55,327	)		455,464			(9,346	)		5,513
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income		(14,909,521	)		(4,710,562	)		(3,021,508	)		(3,271,139	)		—			(101,214	)
Return of capital		—			—			—			(501,022	)		—			(16	)
Net realized gains		—			—			—			—			—			—
Total distributions to shareholders		(14,909,521	)		(4,710,562	)		(3,021,508	)		(3,772,161	)		—			(101,230	)
SHAREHOLDER TRANSACTIONS:
Proceeds from shares sold		217,018,377			167,432,792			47,660,723			142,365,948			2,350,154			8,086,112
Value of shares repurchased		(7,438,354	)		(64,431,077	)		(116,946,947	)		(94,581,842	)		(14,693,067	)		(6,641,822	)
Net income equalization		(755,924	)		(4,003,173	)		55,327			(455,464	)		9,346			(5,513	)
Net increase (decrease) in net assets resulting from shares transactions		208,824,099			98,998,542			(69,230,897	)		47,328,642			(12,333,567	)		1,438,777
Increase (Decrease) in Net Assets		281,742,469			151,403,527			(9,231,497	)		176,032,995			(16,899,595	)		15,806,120
NET ASSETS:
Beginning of year		211,879,458			60,475,931			455,523,287			279,490,292			55,290,071			39,483,951
End of year	$	493,621,927		$	211,879,458		$	446,291,790		$	455,523,287		$	38,390,476		$	55,290,071
Undistributed net investment income (loss) at end of year	$	(7,350,386	)	$	8,504		$	293,268		$	(317,994	)	$	(5,613	)	$	(4,088	)
CHANGES IN SHARES OUTSTANDING:
Shares sold		20,150,000			18,900,000			1,750,000			6,350,000			250,000			800,000
Shares repurchased		(700,000	)		(6,800,000	)		(4,550,000	)		(4,150,000	)		(1,600,000	)		(650,000	)
Shares outstanding, beginning of year		21,100,000			9,000,000			18,200,000			16,000,000			5,350,000			5,200,000
Shares outstanding, end of year		40,550,000			21,100,000			15,400,000			18,200,000			4,000,000			5,350,000

Statements of Changes in Net Assets (Continued)

	PowerShares Morningstar StockInvestor Core Portfolio						PowerShares S&P 500 BuyWrite Portfolio						PowerShares S&P 500^® High Quality Portfolio
	Year Ended April 30, 2011			Year Ended April 30, 2010			Year Ended April 30, 2011			Year Ended April 30, 2010			Year Ended April 30, 2011			Year Ended April 30, 2010
OPERATIONS:
Net investment income (loss)	$	197,681		$	67,667		$	2,033,747		$	1,730,359		$	1,327,857		$	(18,539	)
Net realized gain (loss)		(190,672	)		5,681,406			11,948,255			(18,998,077	)		7,551,440			10,216,561
Net change in unrealized appreciation (depreciation)		1,581,696			1,537,408			(3,195,930	)		41,382,667			10,923,267			6,724,746
Net increase in net assets resulting from operations		1,588,705			7,286,481			10,786,072			24,114,949			19,802,564			16,922,768
Undistributed net investment income (loss) included in the price of units issued and redeemed		(482	)		(6,004	)		(71,222	)		(4,975	)		141,061			(13,912	)
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income		(132,812	)		(145,806	)		(1,906,422	)		(1,778,095	)		(663,992	)		(237,779	)
Return of capital		—			—			—			—			—			—
Net realized gains		—			—			(9,159,750	)		—			—			—
Total distributions to shareholders		(132,812	)		(145,806	)		(11,066,172	)		(1,778,095	)		(663,992	)		(237,779	)
SHAREHOLDER TRANSACTIONS:
Proceeds from shares sold		17,682,163			43,952,344			8,285,348			63,425,020			103,697,810			94,901,543
Value of shares repurchased		(18,611,672	)		(58,310,478	)		(55,333,752	)		(2,133,217	)		(77,887,161	)		(114,889,264	)
Net income equalization		482			6,004			71,222			4,975			(141,061	)		13,912
Net increase (decrease) in net assets resulting from shares transactions		(929,027	)		(14,352,130	)		(46,977,182	)		61,296,778			25,669,588			(19,973,809	)
Increase (Decrease) in Net Assets		526,384			(7,217,459	)		(47,328,504	)		83,628,657			44,949,221			(3,302,732	)
NET ASSETS:
Beginning of year		19,290,090			26,507,549			167,839,828			84,211,171			67,745,515			71,048,247
End of year	$	19,816,474		$	19,290,090		$	120,511,324		$	167,839,828		$	112,694,736		$	67,745,515
Undistributed net investment income (loss) at end of year	$	80,443		$	1,416		$	270,459		$	143,134		$	664,833		$	(5,321	)
CHANGES IN SHARES OUTSTANDING:
Shares sold		950,000			2,550,000			400,000			3,100,000			8,650,000			9,050,000
Shares repurchased		(1,000,000	)		(3,300,000	)		(2,600,000	)		(100,000	)		(6,500,000	)		(10,900,000	)
Shares outstanding, beginning of year		950,000			1,700,000			7,800,000			4,800,000			5,550,000			7,400,000
Shares outstanding, end of year		900,000			950,000			5,600,000			7,800,000			7,700,000			5,550,000

See Notes to Financial Statements.

	PowerShares Water Resources Portfolio						PowerShares WilderHill Clean Energy Portfolio						PowerShares WilderHill Progressive Energy Portfolio
	Year Ended April 30, 2011			Year Ended April 30, 2010			Year Ended April 30, 2011			Year Ended April 30, 2010			Year Ended April 30, 2011			Year Ended April 30, 2010
OPERATIONS:
Net investment income (loss)	$	7,211,333		$	7,422,105		$	(1,482,664	)	$	(1,344,796	)	$	220,688		$	333,938
Net realized gain (loss)		21,884,199			(77,663,256	)		(68,689,809	)		(167,945,273	)		4,447,617			(2,297,784	)
Net change in unrealized appreciation (depreciation)		94,753,726			403,374,916			74,473,012			245,604,627			8,016,614			20,849,396
Net increase in net assets resulting from operations		123,849,258			333,133,765			4,300,539			76,314,558			12,684,919			18,885,550
Undistributed net investment income (loss) included in the price of units issued and redeemed		(473,043	)		(468,057	)		327,754			205,468			(7,103	)		11,802
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income		(6,570,710	)		(9,289,108	)		—			—			(319,968	)		(347,466	)
Return of capital		—			—			—			—			—			—
Net realized gains		—			—			—			—			—			—
Total distributions to shareholders		(6,570,710	)		(9,289,108	)		—			—			(319,968	)		(347,466	)
SHAREHOLDER TRANSACTIONS:
Proceeds from shares sold		114,470,396			29,217,910			146,699,587			184,160,845			18,569,744			4,334,078
Value of shares repurchased		(306,134,214	)		(238,056,609	)		(267,013,644	)		(261,389,443	)		(16,210,652	)		(2,391,138	)
Net income equalization		473,043			468,057			(327,754	)		(205,468	)		7,103			(11,802	)
Net increase (decrease) in net assets resulting from shares transactions		(191,190,775	)		(208,370,642	)		(120,641,811	)		(77,434,066	)		2,366,195			1,931,138
Increase (Decrease) in Net Assets		(74,385,270	)		115,005,958			(116,013,518	)		(914,040	)		14,724,043			20,481,024
NET ASSETS:
Beginning of year		1,335,033,299			1,220,027,341			657,485,608			658,399,648			60,451,214			39,970,190
End of year	$	1,260,648,029		$	1,335,033,299		$	541,472,090		$	657,485,608		$	75,175,257		$	60,451,214
Undistributed net investment income (loss) at end of year	$	1,059,040		$	398,523		$	(29,770	)	$	(24,281	)	$	19,901		$	119,181
CHANGES IN SHARES OUTSTANDING:
Shares sold		6,200,000			1,750,000			15,200,000			17,750,000			650,000			200,000
Shares repurchased		(17,900,000	)		(14,700,000	)		(27,900,000	)		(25,650,000	)		(600,000	)		(100,000	)
Shares outstanding, beginning of year		73,950,000			86,900,000			65,000,000			72,900,000			2,400,000			2,300,000
Shares outstanding, end of year		62,250,000			73,950,000			52,300,000			65,000,000			2,450,000			2,400,000

Financial Highlights

PowerShares Aerospace & Defense Portfolio

	Year Ended April 30,
	2011			2010			2009			2008			2007
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of year	$	19.07		$	13.38		$	20.93		$	20.19		$	17.37
Net investment income**		0.18			0.17			0.16			0.06			0.05
Net realized and unrealized gain (loss) on investments		1.49			5.73			(7.56	)		0.72			2.83
Total from investment operations		1.67			5.90			(7.40	)		0.78			2.88
Distributions to shareholders from:
Net investment income		(0.17	)		(0.21	)		(0.15	)		(0.04	)		(0.06	)
Return of capital		—			—			—			—			(0.00	)^(a)
Total distributions		(0.17	)		(0.21	)		(0.15	)		(0.04	)		(0.06	)
Net asset value at end of year	$	20.57		$	19.07		$	13.38		$	20.93		$	20.19
Share price at end of year***	$	20.57		$	19.07		$	13.37
NET ASSET VALUE, TOTAL RETURN****		8.91	%		44.36	%		(35.46	)%		3.86	%		16.66	%
SHARE PRICE TOTAL RETURN****		8.91	%		44.47	%		(35.48	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of year (000's omitted)	$	107,971		$	137,338		$	116,429		$	257,495		$	201,886
Ratio to average net assets of:
Expenses, after (Waivers) and/or Recapture		0.66	%		0.66	%		0.66	%		0.66	%		0.66	%
Expenses, prior to (Waivers) and/or Recapture		0.73	%		0.69	%		0.67	%		0.64	%		0.77	%
Net investment income, after (Waivers) and/or Recapture		0.99	%		1.08	%		1.01	%		0.27	%		0.28	%
Portfolio turnover rate ††		12	%		17	%		9	%		13	%		16	%
Undistributed net investment income (loss) included in price of units issued and redeemed**#	$	(0.00	)^(a)	$	(0.01	)	$	(0.01	)	$	0.00	^(a)	$	0.00	^(a)

PowerShares Cleantech^TM Portfolio

	Year Ended April 30,												For the Period October 24, 2006* Through
	2011			2010			2009			2008			April 30, 2007
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	25.00		$	19.25		$	33.63		$	27.08		$	24.70
Net investment income (loss)**		0.06			0.03			(0.00	)^(a)		(0.10	)		(0.04	)
Net realized and unrealized gain (loss) on investments		5.05			5.77			(14.38	)		6.65			2.42
Total from investment operations		5.11			5.80			(14.38	)		6.55			2.38
Distributions to shareholders from:
Net investment income		(0.01	)		(0.04	)		—			—			—
Return of capital		—			(0.01	)		—			—			—
Total distributions		(0.01	)		(0.05	)		—			—			—
Net asset value at end of period	$	30.10		$	25.00		$	19.25		$	33.63		$	27.08
Share price at end of period***	$	30.08		$	24.80		$	19.35
NET ASSET VALUE, TOTAL RETURN****		20.43	%		30.16	%		(42.76	)%		24.19	%		9.64	%
SHARE PRICE TOTAL RETURN****		21.32	%		28.45	%		(42.45	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	162,530		$	160,021		$	111,674		$	114,336		$	21,663
Ratio to average net assets of:
Expenses, after (Waivers) and/or Recapture		0.67	%		0.67	%		0.67	%		0.69	%		0.71	%†
Expenses, prior to (Waivers) and/or Recapture		0.74	%		0.71	%		0.73	%		0.77	%		1.06	%†
Net investment income (loss), after (Waivers) and/or Recapture		0.22	%		0.11	%		(0.01	)%		(0.31	)%		(0.29	)%†
Portfolio turnover rate ††		24	%		31	%		72	%		23	%		22	%
Undistributed net investment income (loss) included in price of units issued and redeemed**#	$	0.01		$	(0.01	)	$	(0.05	)	$	(0.09	)	$	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.

See Notes to Financial Statements.

Financial Highlights (Continued)

PowerShares DWA Technical Leaders^TM Portfolio

	Year Ended April 30,												For the Period March 1, 2007* Through
	2011			2010			2009			2008			April 30, 2007
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	21.25		$	14.14		$	25.97		$	25.58		$	23.95
Net investment income (loss)**		0.04			0.06			0.07			(0.02	)		0.04
Net realized and unrealized gain (loss) on investments		5.29			7.15			(11.86	)		0.43			1.59
Total from investment operations		5.33			7.21			(11.79	)		0.41			1.63
Distributions to shareholders from:
Net investment income		(0.06	)		(0.10	)		(0.04	)		(0.01	)		—
Return of capital		—			—			—			(0.01	)		—
Total distributions		(0.06	)		(0.10	)		(0.04	)		(0.02	)		—
Net asset value at end of period	$	26.52		$	21.25		$	14.14		$	25.97		$	25.58
Share price at end of period***	$	26.54		$	21.24		$	14.13
NET ASSET VALUE, TOTAL RETURN****		25.11	%		51.28	%		(45.40	)%		1.62	%		6.81	%
SHARE PRICE TOTAL RETURN****		25.26	%		51.31	%		(45.49	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	450,904		$	159,371		$	138,549		$	363,514		$	92,090
Ratio to average net assets of:
Expenses, after (Waivers) and/or Recapture		0.70	%		0.70	%		0.69	%		0.71	%		0.72	%†
Expenses, prior to (Waivers) and/or Recapture		0.71	%		0.73	%		0.68	%		0.68	%		1.78	%†
Net investment income (loss), after (Waivers) and/or Recapture		0.19	%		0.35	%		0.38	%		(0.07	)%		1.50	%†^(a)
Portfolio turnover rate ††		42	%		52	%		87	%		83	%		9	%
Undistributed net investment income (loss) included in price of units issued and redeemed**#	$	0.05		$	(0.02	)	$	(0.03	)	$	0.07		$	0.07

PowerShares Global Listed Private Equity Portfolio

	Year Ended April 30,												For the Period October 24, 2006* Through
	2011			2010			2009			2008			April 30, 2007
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	10.04		$	6.72		$	20.27		$	27.79		$	25.09
Net investment income**		0.26			0.33			0.87			1.22			0.44
Net realized and unrealized gain (loss) on investments		2.41			3.27			(13.55	)		(7.63	)		2.60
Total from investment operations		2.67			3.60			(12.68	)		(6.41	)		3.04
Distributions to shareholders from:
Net investment income		(0.54	)		(0.28	)		(0.87	)		(1.11	)		(0.34	)
Net asset value at end of period	$	12.17		$	10.04		$	6.72		$	20.27		$	27.79
Share price at end of period***	$	12.25		$	10.06		$	6.71
NET ASSET VALUE, TOTAL RETURN****		27.93	%		54.20	%		(64.23	)%		(23.50	)%		12.18	%
SHARE PRICE TOTAL RETURN****		28.48	%		54.70	%		(64.29	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	493,622		$	211,879		$	60,476		$	103,379		$	150,078
Ratio to average net assets of:
Expenses, after (Waivers) and/or Recapturer		0.70	%		0.70	%		0.70	%		0.71	%		0.71	%†
Expenses, prior to (Waivers) and/or Recapturer		0.73	%		0.72	%		0.78	%		0.72	%		0.82	%†
Net investment income, after (Waivers) and/or Recapture		2.50	%		3.66	%^(b)		7.75	%		5.04	%		3.38	%†
Portfolio turnover rate ††		112	%		121	%		74	%		30	%		19	%
Undistributed net investment income (loss) included in price of units issued and redeemed**#	$	0.03		$	0.24		$	0.21		$	(0.03	)	$	0.08

* 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.

r In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the investment companies in which the Fund invests. Estimated investment companies expenses are not expenses that are incurred directly by your Fund. They are expenses that are incurred directly by the investment companies and are deducted from the value of the funds your Fund invests in. The effect of the estimated underlying fund expenses that you bear indirectly is included in your Fund's total return.

† 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) Net investment income per share and the ratio of net investment income to average net assets include a special cash dividend received of $15.00 per share owned of Dean Foods Co. on April 2, 2007. Net investment loss per share and the ratio of net investment loss to average net assets excluding the special dividend were less than $0.005 and (0.11)%, respectively, for the year ended April 30, 2007.

(b) Net investment income per share and the ratio of net investment income to average net assets include a special stock dividend in which the Fund elected a cash payment of $0.96 per share owned of American Captial Ltd. on August 7, 2009. Net investment income per share and the ratio of net investment income to average net assets excluding the special dividend are $0.27 and 2.94%, respectively.

See Notes to Financial Statements.

Financial Highlights (Continued)

PowerShares Golden Dragon Halter USX China Portfolio

	Year Ended April 30,
	2011			2010			2009			2008			2007
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of year	$	25.03		$	17.47		$	28.88		$	21.43		$	16.90
Net investment income*		0.21			0.13			0.20			0.12			0.20
Net realized and unrealized gain (loss) on investments		3.92			7.63			(11.44	)		7.54			4.54
Total from investment operations		4.13			7.76			(11.24	)		7.66			4.74
Distributions to shareholders from:
Net investment income		(0.18	)		(0.17	)		(0.17	)		(0.20	)		(0.21	)
Return of capital		—			(0.03	)		—			(0.01	)		—
Total distributions		(0.18	)		(0.20	)		(0.17	)		(0.21	)		(0.21	)
Net asset value at end of year	$	28.98		$	25.03		$	17.47		$	28.88		$	21.43
Share price at end of year**	$	28.87		$	25.04		$	17.48
NET ASSET VALUE, TOTAL RETURN***		16.60	%		44.51	%		(39.06	)%		35.87	%		28.53	%
SHARE PRICE TOTAL RETURN***		16.11	%		44.49	%		(38.92	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of year (000's omitted)	$	446,292		$	455,523		$	279,490		$	528,483		$	394,320
Ratio to average net assets of:
Expenses, after (Waivers) and/or Recapture		0.70	%		0.70	%		0.69	%		0.69	%		0.70	%
Expenses, prior to (Waivers) and/or Recapture		0.72	%		0.71	%		0.71	%		0.66	%		0.72	%
Net investment income, after (Waivers) and/or Recapture		0.82	%		0.56	%		1.06	%		0.42	%		1.06	%
Portfolio turnover rate †		15	%		35	%		20	%		15	%		17	%
Undistributed net investment income (loss) included in price of units issued and redeemed*#	$	(0.00	)^(a)	$	0.02		$	(0.03	)	$	0.03		$	0.01

PowerShares Lux Nanotech Portfolio

	Year Ended April 30,
	2011			2010			2009			2008			2007
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of year	$	10.33		$	7.59		$	14.07		$	17.48		$	19.05
Net investment income (loss)*		(0.00	)^(a)		(0.00	)^(a)		0.02			(0.03	)		(0.02	)
Net realized and unrealized gain (loss) on investments		(0.73	)		2.76			(6.50	)		(3.38	)		(1.55	)
Total from investment operations		(0.73	)		2.76			(6.48	)		(3.41	)		(1.57	)
Distributions to shareholders from:
Net investment income		—			(0.02	)		—			—			—
Return of capital		—			0.00	^(a)		—			—			—
Total distributions		—			(0.02	)		—			—			—
Net asset value at end of year	$	9.60		$	10.33		$	7.59		$	14.07		$	17.48
Share price at end of year**	$	9.70		$	10.32		$	7.60
NET ASSET VALUE, TOTAL RETURN***		(7.07	)%		36.39	%		(46.06	)%		(19.51	)%		(8.24	)%
SHARE PRICE TOTAL RETURN***		(6.01	)%		36.08	%		(45.79	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of year (000's omitted)	$	38,390		$	55,290		$	39,484		$	84,428		$	159,052
Ratio to average net assets of:
Expenses, after (Waivers) and/or Recapturer		0.70	%		0.70	%		0.70	%		0.70	%		0.71	%
Expenses, prior to (Waivers) and/or Recapturer		0.95	%		0.85	%		0.89	%		0.73	%		0.79	%
Net investment income (loss), after (Waivers) and/or Recapture		(0.04	)%		(0.04	)%		0.17	%		(0.17	)%		(0.09	)%
Portfolio turnover rate †		58	%		57	%		50	%		42	%		16	%
Undistributed net investment income (loss) included in price of units issued and redeemed*#	$	(0.00	)^(a)	$	0.00	^(a)	$	0.00	^(a)	$	0.01		$	(0.01	)

* 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.

† 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.

Financial Highlights (Continued)

PowerShares Morningstar StockInvestor Core Portfolio

	Year Ended April 30,												For the Period December 1, 2006* Through
	2011			2010			2009			2008			April 30, 2007
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	20.31		$	15.59		$	27.90		$	28.04		$	25.19
Net investment income**		0.22			0.05			0.10			0.01			0.00	^(a)
Net realized and unrealized gain (loss) on investments		1.64			4.76			(12.35	)		(0.14	)		2.86
Total from investment operations		1.86			4.81			(12.25	)		(0.13	)		2.86
Distributions to shareholders from:
Net investment income		(0.15	)		(0.09	)		(0.06	)		(0.01	)		0.00	^(a)
Return of capital		—			—			—			0.00	^(a)		(0.01	)
Total distributions		(0.15	)		(0.09	)		(0.06	)		(0.01	)		(0.01	)
Net asset value at end of period	$	22.02		$	20.31		$	15.59		$	27.90		$	28.04
Share price at end of period***	$	22.01		$	20.31		$	15.58
NET ASSET VALUE, TOTAL RETURN****		9.25	%		31.03	%		(43.93	)%		(0.45	)%		11.36	%
SHARE PRICE TOTAL RETURN****		9.20	%		31.11	%		(43.93	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	19,816		$	19,290		$	26,508		$	41,850		$	33,650
Ratio to average net assets of:
Expenses, after (Waivers) and/or Recapturer		0.53	%		0.70	%		0.70	%		0.73	%		0.75	%†
Expenses, prior to (Waivers) and/or Recapturer		1.81	%		1.09	%		0.94	%		0.95	%		1.21	%†
Net investment income, after (Waivers) and/or Recapture		1.11	%		0.27	%		0.47	%		0.03	%		0.03	%†
Portfolio turnover rate ††		91	%		127	%		113	%		77	%		13	%
Undistributed net investment income (loss) included in price of units issued and redeemed**#	$	(0.00	)^(a)	$	(0.00	)^(a)	$	(0.00	)^(a)	$	0.00	^(a)	$	0.00	^(a)

PowerShares S&P 500 BuyWrite Portfolio

	Year Ended April 30,									For the Period December 19, 2007* Through
	2011			2010			2009			April 30, 2008
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	21.52		$	17.54		$	25.00		$	24.97
Net investment income**		0.29			0.27			0.38			0.09
Net realized and unrealized gain (loss) on investments		1.34			4.00			(7.38	)		(0.01	)
Total from investment operations		1.63			4.27			(7.00	)		0.08
Distributions to shareholders from:
Net investment income		(0.27	)		(0.29	)		(0.46	)		(0.05	)
Net realized gains		(1.36	)		—			—			—
Total distributions		(1.63	)		(0.29	)		(0.46	)		(0.05	)
Net asset value at end of period	$	21.52		$	21.52		$	17.54		$	25.00
Share price at end of period***	$	21.52		$	21.52		$	17.59
NET ASSET VALUE, TOTAL RETURN****		8.11	%		24.48	%		(28.26	)%		0.33	%^(b)
SHARE PRICE TOTAL RETURN****		8.09	%		24.11	%		(28.16	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	120,511		$	167,840		$	84,211		$	7,500
Ratio to average net assets of:
Expenses		0.75	%		0.75	%		0.75	%		0.75	%†
Net investment income		1.37	%		1.35	%		2.09	%		1.12	%†
Portfolio turnover rate ††		61	%		51	%		83	%		10	%
Undistributed net investment income (loss) included in price of units issued and redeemed**#	$	(0.01	)	$	(0.00	)^(a)	$	(0.05	)	$	0.09

* 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 Inception (first day of trading on the exchange) to April 30, 2008 was (0.19)%.

See Notes to Financial Statements.

Financial Highlights (Continued)

PowerShares S&P 500^® High Quality Portfolio

	Year Ended April 30,
	2011			2010			2009			2008			2007
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of year	$	12.21		$	9.60		$	16.76		$	17.59		$	17.09
Net investment income (loss)*		0.20			0.00	^(a)		0.04			(0.02	)		(0.01	)
Net realized and unrealized gain (loss) on investments		2.31			2.64			(7.19	)		(0.81	)		0.51
Total from investment operations		2.51			2.64			(7.15	)		(0.83	)		0.50
Distributions to shareholders from:
Net investment income		(0.08	)		(0.03	)		(0.01	)		—			—
Net asset value at end of year	$	14.64		$	12.21		$	9.60		$	16.76		$	17.59
Share price at end of year**	$	14.64		$	12.21		$	9.60
NET ASSET VALUE, TOTAL RETURN***		20.61	%		27.63	%		(42.66	)%		(4.72	)%		2.93	%
SHARE PRICE TOTAL RETURN***		20.61	%		27.63	%		(42.62	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of year (000's omitted)	$	112,695		$	67,746		$	71,048		$	177,669		$	272,608
Ratio to average net assets of:
Expenses, after (Waivers) and/or Recapture		0.52	%		0.70	%		0.70	%		0.70	%		0.70	%
Expenses, prior to (Waivers) and/or Recapture		0.84	%		0.80	%		0.72	%		0.70	%		0.75	%
Net investment income (loss), after (Waivers) and/or Recapture		1.49	%		(0.03	)%		0.27	%		(0.12	)%		(0.06	)%
Portfolio turnover rate †		64	%		138	%		143	%		101	%		113	%
Undistributed net investment income (loss) included in price of units issued and redeemed*#	$	0.02		$	(0.00	)^(a)	$	(0.00	)^(a)	$	0.01		$	0.00	^(a)

PowerShares Water Resources Portfolio

	Year Ended April 30,
	2011			2010			2009			2008			2007
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of year	$	18.05		$	14.04		$	20.66		$	19.20		$	18.25
Net investment income*		0.11			0.09			0.08			0.08			0.17
Net realized and unrealized gain (loss) on investments		2.19			4.03			(6.64	)		1.46			0.95
Total from investment operations		2.30			4.12			(6.56	)		1.54			1.12
Distributions to shareholders from:
Net investment income		(0.10	)		(0.11	)		(0.06	)		(0.08	)		(0.17	)
Net asset value at end of year	$	20.25		$	18.05		$	14.04		$	20.66		$	19.20
Share price at end of year**	$	20.24		$	18.05		$	14.02
NET ASSET VALUE, TOTAL RETURN***		12.81	%		29.48	%		(31.76	)%		8.02	%		6.26	%
SHARE PRICE TOTAL RETURN***		12.75	%		29.67	%		(31.63	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of year (000's omitted)	$	1,260,648		$	1,335,033		$	1,220,027		$	2,196,652		$	1,606,782
Ratio to average net assets of:
Expenses, after (Waivers) and/or Recapture		0.66	%		0.64	%		0.64	%		0.64	%		0.66	%
Expenses, prior to (Waivers) and/or Recapture		0.66	%		0.64	%		0.64	%		0.63	%		0.67	%
Net investment income, after (Waivers) and/or Recapture		0.63	%		0.57	%		0.49	%		0.39	%		0.96	%
Portfolio turnover rate †		13	%		20	%		33	%		23	%		27	%
Undistributed net investment income (loss) included in price of units issued and redeemed*#	$	(0.01	)	$	(0.01	)	$	(0.01	)	$	0.01		$	0.02

* 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.

† 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.

Financial Highlights (Continued)

PowerShares WilderHill Clean Energy Portfolio

	Year Ended April 30,
	2011			2010			2009			2008			2007
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of year	$	10.12		$	9.03		$	20.94		$	19.29		$	22.38
Net investment income (loss)**		(0.03	)		(0.02	)		(0.02	)		(0.07	)		0.04
Net realized and unrealized gain (loss) on investments		0.26			1.11			(11.89	)		1.72			(3.08	)
Total from investment operations		0.23			1.09			(11.91	)		1.65			(3.04	)
Distributions to shareholders from:
Net investment income		—			—			—			—			(0.05	)
Return of capital		—			—			—			—			0.00	^(a)
Total distributions		—			—			—			—			(0.05	)
Net asset value at end of year	$	10.35		$	10.12		$	9.03		$	20.94		$	19.29
Share price at end of year***	$	10.33		$	10.11		$	8.99
NET ASSET VALUE, TOTAL RETURN****		2.27	%		12.07	%		(56.88	)%		8.55	%		(13.58	)%
SHARE PRICE TOTAL RETURN****		2.18	%		12.46	%		(57.07	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of year (000's omitted)	$	541,472		$	657,486		$	658,400		$	1,473,893		$	914,345
Ratio to average net assets of:
Expenses, after (Waivers) and/or Recapture		0.70	%		0.70	%		0.69	%		0.67	%		0.70	%
Expenses, prior to (Waivers) and/or Recapture		0.75	%		0.70	%		0.69	%		0.67	%		0.69	%
Net investment income (loss), after (Waivers) and/or Recapture		(0.27	)%		(0.18	)%		(0.12	)%		(0.32	)%		0.24	%†††
Portfolio turnover rate ††		32	%		42	%		41	%		20	%		41	%
Undistributed net investment income (loss) included in price of units issued and redeemed**#	$	0.01		$	0.00	^(a)	$	(0.00	)^(a)	$	(0.02	)	$	0.01

PowerShares WilderHill Progressive Energy Portfolio

	Year Ended April 30,												For the Period October 24, 2006* Through
	2011			2010			2009			2008			April 30, 2007
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	25.19		$	17.38		$	28.23		$	28.63		$	24.91
Net investment income**		0.10			0.14			0.13			0.09			0.06
Net realized and unrealized gain (loss) on investments		5.53			7.81			(10.91	)		(0.36	)		3.68
Total from investment operations		5.63			7.95			(10.78	)		(0.27	)		3.74
Distributions to shareholders from:
Net investment income		(0.14	)		(0.14	)		(0.07	)		(0.12	)		(0.02	)
Return of capital		—			—			—			(0.01	)		—
Total distributions		(0.14	)		(0.14	)		(0.07	)		(0.13	)		(0.02	)
Net asset value at end of period	$	30.68		$	25.19		$	17.38		$	28.23		$	28.63
Share price at end of period***	$	30.70		$	25.19		$	17.38
NET ASSET VALUE, TOTAL RETURN****		22.47	%		45.96	%		(38.23	)%		(0.96	)%		15.01	%
SHARE PRICE TOTAL RETURN****		22.55	%		45.96	%		(38.16	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	75,175		$	60,451		$	39,970		$	62,097		$	22,905
Ratio to average net assets of:
Expenses, after (Waivers) and/or Recapture		0.70	%		0.70	%		0.70	%		0.73	%		0.74	%†
Expenses, prior to (Waivers) and/or Recapture		0.86	%		0.84	%		0.86	%		0.88	%		1.09	%†
Net investment income, after (Waivers) and/or Recapture		0.37	%		0.63	%		0.62	%		0.30	%		0.45	%†
Portfolio turnover rate ††		22	%		52	%		32	%		31	%		12	%
Undistributed net investment income (loss) included in price of units issued and redeemed**#	$	(0.00	)^(a)	$	0.00	^(a)	$	0.00	^(a)	$	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.

††† Net investment income per share and the ratio of net investment income to average net assets include a special cash dividend received of $6.72 per share owned of Scottish Power PLC ADR on May 18, 2006. Net investment loss per share and the ratio of net investment loss to average net assets excluding the special dividend were $(0.04) and (0.23)%, respectively, for the year ended April 30, 2007.

# 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.

Notes to Financial Statements

PowerShares Exchange-Traded Fund Trust

April 30, 2011

Note 1. Organization

Fund Name				Short Name
PowerShares Aerospace & Defense Portfolio				"Aerospace & Defense Portfolio"

PowerShares Cleantech^TM Portfolio				"Cleantech^TM Portfolio"

PowerShares DWA Technical Leaders^TM Portfolio				"DWA Technical Leaders^TM Portfolio"

PowerShares Global Listed Private Equity Portfolio				"Global Listed Private Equity Portfolio"

PowerShares Golden Dragon Halter USX China Portfolio				"Golden Dragon Halter USX China Portfolio"

PowerShares Lux Nanotech Portfolio				"Lux Nanotech Portfolio"

PowerShares Morningstar StockInvestor Core Portfolio (formerly PowerShares Value Line				"Morningstar StockInvestor Core Portfolio"

Industry Rotation Portfolio)

PowerShares S&P 500 BuyWrite Portfolio				"S&P 500 BuyWrite Portfolio"

PowerShares S&P 500^® High Quality Portfolio				"S&P 500^® High Quality Portfolio"

(formerly PowerShares Value Line Timeliness^TM

Select Portfolio)

PowerShares Water Resources Portfolio				"Water Resources Portfolio"

PowerShares WilderHill Clean Energy Portfolio				"WilderHill Clean Energy Portfolio"

PowerShares WilderHill Progressive Energy Portfolio				"WilderHill Progressive Energy Portfolio"

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 by Authorized Participants, the Shares are not individually redeemable securities of the Funds.

Fund				Index
Aerospace & Defense Portfolio				SPADE^TM Defense Index

Cleantech^TM Portfolio				The Cleantech Index^TM

DWA Technical Leaders^TM Portfolio				Dorsey Wright Technical Leaders^TM Index

Global Listed Private Equity Portfolio				Global Listed Private Equity Index^SM

Golden Dragon Halter USX China Portfolio				Halter USX China Index^SM

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

April 30, 2011

Fund				Index
Lux Nanotech Portfolio				Lux Nanotech Index^TM

Morningstar StockInvestor Core Portfolio				Morningstar^® StockInvestor Core Index^SM

S&P 500 BuyWrite Portfolio				CBOE S&P 500 BuyWrite Index

S&P 500^® High Quality Portfolio				S&P 500^® High Quality Rankings Index

Water Resources Portfolio				Palisades Water Index

WilderHill Clean Energy Portfolio				WilderHill Clean Energy Index

WilderHill Progressive Energy Portfolio				WilderHill Progressive Energy Index

Note 2. Significant Accounting Policies

The preparation of the financial statements in accordance with General Accepted Accounting Principles ("GAAP") 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.

A. Security Valuation

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

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

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

April 30, 2011

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 reflect 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 accounting 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.

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

With respect to the Water Resources Portfolio, the Fund's use of a representative sampling approach will result in its holding a smaller number of securities than are in its Underlying Index. As a result, an adverse development respecting an issuer of 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 its Underlying Index. To the extent the assets in the Fund are smaller, these risks will be greater.

Non-Diversified Fund Risk. Except for Cleantech^TM Portfolio, each Fund is considered non-diversified and can invest a greater portion of its assets in securities of individual issuers than a diversified fund. As a result, changes in the market value of a single investment could cause greater fluctuations in Share price than would occur in a diversified fund.

Concentration Risk. To the extent a Fund concentrates its investments in an industry or group of industries, the value of the Fund's Shares may rise and fall more than the value of Shares of a fund that invests in a broader range of securities.

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

April 30, 2011

Non-Correlation Risk. Each Fund's return may not match the return of its Underlying Index for a number of reasons. For example, each Fund incurs operating expenses not applicable to its Underlying Index, and incurs costs in buying and selling securities, especially when rebalancing the securities holdings to reflect changes in the composition of its Underlying Index. In addition, the performance of each Fund and its Underlying Index may vary due to asset valuation differences and differences between each Fund's portfolio and its Underlying Index resulting from legal restrictions, cost or liquidity constraints.

Small and Medium Capitalization Company Risk. Investing in securities of small and medium capitalization companies involves greater risk than is customarily associated with investing in larger, more established companies. These companies' securities may be more volatile and less liquid than those of more established companies. These securities may have returns that vary, sometimes significantly, from the overall securities market. Often small and medium capitalization companies and the industries in which they are focused are still evolving and may make them be more sensitive to changing market conditions.

Foreign Investment Risk. The Cleantech^TM Portfolio's, the Global Listed Private Equity Portfolio's and the Golden Dragon Halter USX China Portfolio's investments in the securities of non-U.S. issuers, including depositary receipts, involve risks beyond those associated with investments in U.S. securities. These additional risks include greater market volatility, the availability of less reliable financial information, higher transactional costs, taxation by foreign governments, decreased market liquidity and political instability. As certain Funds will invest in securities denominated in foreign currencies, changes in currency exchange rates may negatively impact the Fund's returns.

Risk of Investing in Listed Private Equity Companies. There are certain risks inherent in the Global Listed Private Equity Portfolio's investments in listed private equity companies, which encompass business development companies ("BDCs") and other financial institutions or vehicles whose principal business is to invest in and lend capital to privately-held companies. The 1940 Act imposes certain restraints upon the operations of a BDC. Generally, little public information exists for private and thinly traded companies and there is a risk that investors may not be able to make a fully informed investment decision. With investments in debt instruments, there is a risk that the issuer may default on its payments or declare bankruptcy. Additionally, a BDC may only incur indebtedness in amounts such that the BDC's asset coverage equals at least 200% after such incurrence. These limitations on asset mix and leverage may prohibit the way that the BDC raises capital. BDCs generally invest in less mature private companies which involve greater risk than well-established publicly-traded companies. To the extent that the Fund invests in BDCs or other investment companies, a shareholder in the Fund will bear not only his or her proportionate share of the expenses of the Fund, but also, indirectly the expenses of the BDCs or other investment companies.

The Fund may not acquire greater than 3% of the total outstanding shares of BDCs or other investment companies. As a result, this limitation could inhibit the Fund's ability to purchase certain of the securities in the Underlying Index in the proportions represented in the Underlying Index. In these circumstances, the Fund would be required to use sampling techniques which could increase the risk of tracking error.

Risks of Investing in MLP Units. The Global Listed Private Equity Portfolio's investments in master limited partnerships ("MLP") units are subject to certain risks inherent in the structure of MLPs, including (i) tax risks, (ii) the limited ability to elect or remove management or the general partner or managing member, (iii) limited voting rights and (iv) conflicts of interest between the general partner or managing member and its affiliates and the limited partners or members.

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

April 30, 2011

China Exposure Risk. The value of the securities of companies which derive the majority of their revenues from China included in the Golden Dragon Halter USX China Portfolio is likely to be more volatile than that of other issuers. The economy of China differs, often unfavorably, from the U.S. economy in such respects as structure, general development, government involvement, wealth distribution, rate of inflation, growth rate, allocation of resources and capital reinvestment, among others.

Nanotechnology Industry Concentration Risk. Small technology companies included in the Lux Nanotech Portfolio are especially risky and may be less experienced, with limited product lines, markets or financial resources. Consequently, these companies are subject to scientific, technological and commercialization risks. These securities have a significantly greater risk of loss than traditional investment securities due to the speculative nature of these investments. Technology companies are generally subject to the risk of rapidly changing technologies, a limited product life span due to the frequent introduction of new or improved products, as well as cyclical market patterns and evolving industry standards. Technology companies also face the risk of losing patent, copyright and trademark protections.

C. Federal Income Taxes

D. Investment Income and Investment Transactions

E. Expenses

Each Fund (except S&P 500 BuyWrite Portfolio) is responsible for all 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

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

April 30, 2011

transactions, sub-licensing fees related to its respective Underlying Intellidex or Underlying Index, any distribution fees or expenses, litigation expenses, fees payable to the Trust's Board members and officers who are not "interested persons" of the Trust or the Adviser, expenses incurred in connection with the Board members' services, including travel expenses and legal fees of counsel for those members of the Board who are not "interested persons" of the Trust and extraordinary expenses.

The S&P 500 BuyWrite 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 S&P 500 BuyWrite Portfolio including the cost of transfer agency, custody, fund administration, legal, audit and other services, except for distribution fees, if any, brokerage expenses, taxes, interest, litigation expenses 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 them on ex-dividend date. Such distributions on a tax basis are determined in conformity with income tax regulations which may differ from GAAP. 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 of the 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 (loss) 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.

H. Option Contracts Written

The S&P 500 BuyWrite Portfolio may engage in certain strategies involving options to manage or minimize the risk of its investments or for investment purposes. A call option gives the purchaser of such option the right to buy, and the writer (the Fund) the obligation to sell, the underlying security at the stated exercise price during the option period. When a Fund writes (sells) call options, the amount of the premium received is recorded as a liability in the Statement of Assets and Liabilities and is subsequently "marked-to-market" to reflect the current value of the option written. The difference between the premium received and the current value of the option is recorded as unrealized appreciation or depreciation. The net change in unrealized appreciation (depreciation) is reported in the Statement of Operations. If a written call option expires, or if the Fund enters into a closing purchase transaction, the Fund realizes a gain (or a loss if the closing purchase transaction exceeds the premium received when the option was written) without regard to any unrealized gain or loss on the underlying security, and the liability related to such option is extinguished. If a written option is exercised, the Fund realizes a gain or loss from the sale of the underlying security and the proceeds of the sale are increased by the premium originally received. The primary risk in writing a call option is market risk; the Fund gives up the opportunity for profit if the market price of the underlying security increases and the option is exercised but will continue to bear the risk of loss should the

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

April 30, 2011

price of the underlying security decline. There is also a risk the Fund may not be able to enter into a closing transaction because of an illiquid market.

Writing Covered Call Option Risk. By writing covered call options, in return for the receipt of premiums, the S&P 500 BuyWrite Portfolio will give up the opportunity to benefit from potential increases in the value of the S&P 500 Index above the exercise prices of the Written Options, but will continue to bear the risk of declines in the value of the S&P 500 Index. The premiums received from the options may not be sufficient to offset any losses sustained from the volatility of the underlying stocks over time. In addition, the Fund's ability to sell the underlying securities will be limited while the option is in effect unless the Fund extinguishes the option position, through the purchase of an offsetting identical option prior to the expiration of the written option. If trading of options is suspended, the Fund may be unable to write options at times that may be desirable or advantageous to the Fund to do so.

Note 3. Derivative Investments

S&P 500 BuyWrite Portfolio has implemented required disclosures about derivative instruments and hedging activities in accordance with GAAP. This disclosure is intended to improve financial reporting about derivative instruments and hedging activities by requiring enhanced disclosures to enable investors to better understand their effects on an entity's financial position and financial performance. The enhanced disclosure has no impact on the results of operations reported in the financial statements.

Value of Derivative Instruments at Year-End

The table below summarizes the value of the Fund's derivative instruments, detailed by primary risk exposure, held as of April 30, 2011:

	Value
Risk Exposure/Derivative Type	Assets		Liabilities
S&P 500 BuyWrite Portfolio
Equity risk
Options written contracts	$	—	$	(4,213,440	)

Effect of Derivative Instruments for the year ended April 30, 2011

The table below summarizes the gains (losses) on derivative instruments, detailed by primary risk exposure, recognized in earnings during the year:

	Location of Gain (Loss) on Statements of Operations
	Options
S&P 500 BuyWrite Portfolio*
Realized Gain (Loss)
Equity risk	$	(9,038,928	)
Change in Unrealized Appreciation (Depreciation)
Equity risk		(3,061,141	)
Total	$	(12,100,069	)

* The average value of outstanding options during the year was $2,756,777.

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

April 30, 2011

S&P 500 BuyWrite Portfolio

	Transactions During the Year
	Call Option Contracts
	Number of Contracts			Premiums Received
Beginning of year		1,429		$	2,584,600
Written		15,317			36,445,008
Closed		(5,276	)		(11,055,579	)
Expired		(10,558	)		(26,094,830	)
End of year		912		$	1,879,199

Open Options Written at Year End
	Contract Month	Strike Price		Number of Contracts		Premiums Received		Notional Value		Unrealized Appreciation (Depreciation)
Call Option S&P 500 Index	May-11	$	1,320		912	$	1,879,199	$	4,213,440	$	(2,334,241	)

Note 4. Investment Advisory Agreement and Other Agreements

The Trust has entered into an Investment Advisory Agreement with the Adviser pursuant to 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 S&P 500 BuyWrite Portfolio) has agreed to pay the Adviser an annual fee of 0.50% of the Fund's average daily net assets. The S&P 500 BuyWrite Portfolio has agreed to pay the Adviser an annual unitary management fee of 0.75% of its average daily net assets and the Adviser has agreed to pay for substantially all expenses of S&P 500 BuyWrite Portfolio including the cost of transfer agency, custody, fund administration, legal, audit, litigation expenses, and other services, except for distribution fees, if any, brokerage expenses, taxes, interest, litigation expenses and other extraordinary expenses.

The Adviser's parent, Invesco Ltd., has agreed to indemnify and hold harmless the Global Listed Private Equity Portfolio and the Independent Trustees (as defined herein) of the Trust against any and all loss, damages, liability and expenses arising from certain alleged omission or misstatement in the Fund's registration statement.

The Adviser has entered into an Amended and Restated Excess Expense Agreement (the "Excess Expense Agreement") with the Trust, pursuant to which the Adviser has agreed to waive fees and/or pay Fund expenses to the extent necessary to prevent the operating expenses of (i) each Fund (except for Morningstar StockInvestor Core Portfolio, S&P 500^® High Quality Portfolio and S&P 500 BuyWrite Portfolio) (excluding interest expense, brokerage commissions and other trading expenses, sub-licensing fees, offering costs, taxes, expenses of the investment companies that are paid indirectly as a result of share ownership of the investment company and extraordinary expenses) from exceeding 0.60% of the Fund's average daily net assets per year and (ii) each of Morningstar StockInvestor Core Portfolio and S&P 500^® High Quality Portfolio (excluding interest expense, brokerage commissions and other trading expenses, offering costs, taxes and extraordinary expenses) from exceeding 0.50% of the Funds average daily net assets per year (the "Expense Cap"), at least until August 31, 2012. Offering costs excluded from the

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

April 30, 2011

Expense Cap are: (a) initial legal fees pertaining to the Funds' Shares offered for sale; (b) initial Securities and Exchange Commission and state registration fees; and (c) initial fees paid to be listed on an exchange.

The Excess Expense Agreement does not apply to S&P 500 BuyWrite Portfolio.

The amounts available for potential future recapture by the Adviser under the Excess Expense Agreement and the expiration schedule at April 30, 2011 are as follows:

	Total Potential		Potential Recapture Amounts Expiring
	Recapture Amounts		04/30/12		04/30/13		04/30/14
Aerospace & Defense Portfolio	$	157,175	$	39,737	$	36,343	$	81,095
Cleantech^TM Portfolio		223,884		70,478		60,571		92,835
DWA Technical Leaders^TM Portfolio		20,795		—		2,145		18,650
Global Listed Private Equity Portfolio		173,023		65,227		30,666		77,130
Golden Dragon Halter USX China Portfolio		263,692		85,848		72,246		105,598
Lux Nanotech Portfolio		308,103		115,193		80,942		111,968
Morningstar StockInvestor Core Portfolio		379,416		55,821		97,515		226,080
S&P 500^® High Quality Portfolio		368,053		18,860		67,890		281,303
Water Resources Portfolio		11,685		—		—		11,685
WilderHill Clean Energy Portfolio		138,708		—		—		138,708
WilderHill Progressive Energy Portfolio		251,347		78,641		75,070		97,636

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

Fund				Licensor
Aerospace & Defense Portfolio				International Space Business Council

Cleantech^TM Portfolio				Cleantech Captial Indices LLC

DWA Technical Leaders^TM Portfolio				Dorsey Wright & Associates, Inc.

Global Listed Private Equity Portfolio				Red Rocks Capital Partners, LLC

Golden Dragon Halter USX China Portfolio				Halter Financial Group, Inc.

Lux Nanotech Portfolio				Lux Research, Inc.

Morningstar StockInvestor Core Portfolio				Morningstar, Inc.

S&P 500 BuyWrite Portfolio				Standard & Poor's ("S&P"), a division of The McGraw-Hill Companies, Inc.

S&P 500^® High Quality Portfolio				Standard & Poor's Financial Services LLC

Water Resources Portfolio				Hydrogen Ventures LLC

WilderHill Clean Energy Portfolio				WilderShares, LLC

WilderHill Progressive Energy Portfolio				WilderShares, LLC

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

April 30, 2011

Each Underlying Index name trademark is 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 S&P 500 BuyWrite 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 5. Additional Valuation Information

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 yield curves, loss severities, default rates and discount rates, volatilities and others.

Except for the Fund listed below, as of April 30, 2011, the securities in each Fund were valued based on Level 1 inputs. The appreciation on options held in S&P 500 BuyWrite Portfolio was based on Level 1 inputs. 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.

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

April 30, 2011

With respect to each Fund (except for Global Listed Private Equity Portfolio), during the fiscal year ended April 30, 2011, there were no significant transfers between investment levels. During the fiscal year ended April 30, 2011, there were transfers between investment levels, due to the application of foreign fair value triggers for the Global Listed Private Equity Portfolio.

	Investments in Securities
	Level 1		Level 2		Level 3		Total
Golden Dragon Halter USX China Portfolio
Equity Securities	$	443,791,620	$	1,101,128	$	1,350,143	$	446,242,891
Lux Nanotech Portfolio
Equity Securities	$	37,178,870	$	—	$	1,214,639	$	38,393,509
Money Market Fund		90,796		—		—		90,796
Total Investments	$	37,269,666	$	—	$	1,214,639	$	38,484,305

Note 6. Investments in Affiliates

Water Resources Portfolio

	Value April 30, 2010		Purchase at Cost		Proceeds from Sales			Change in Unrealized Appreciation (Depreciation)			Realized Gain (Loss)			Value April 30, 2011		Dividend Income
Ameron International Corp.	$	57,586,206	$	5,781,536	$	(23,993,172	)	$	5,655,691		$	(6,645,582	)	$	38,384,679	$	2,663,238
Badger Meter, Inc.		55,772,802		10,138,815		(12,618,981	)		(8,830,694	)		3,870,010			48,331,952		651,906
Consolidated Water Co. Ltd. (Cayman Islands)		18,519,265		1,236,026		(1,286,369	)		(4,499,106	)		(1,115,675	)		12,854,141		386,233
Gorman-Rupp Co. (The)		41,609,621		2,309,447		(15,912,067	)		13,251,378			302,257			41,560,636		518,239
Layne Christensen Co.		39,022,469		8,405,306		(14,107,462	)		1,198,898			1,342,809			35,862,020		—
Lindsay Corp.		42,735,908		4,330,745		(31,010,054	)		29,858,911			8,824,175			54,739,685		360,575
Mueller Water Products, Inc., Class A		46,394,068		16,552,244		(15,415,538	)		489,745			(7,617,739	)		40,402,780		627,122
Northwest Pipe Co.		20,051,776		889,317		(773,781	)		818,504			(836,769	)		20,149,047		—
Total Investments in Affiliates	$	321,692,115	$	49,643,436	$	(115,117,424	)	$	37,943,327		$	(1,876,514	)	$	292,284,940	$	5,207,313

WilderHill Clean Energy Portfolio

				Value April 30, 2010				Purchase at Cost				Proceeds from Sales				Change in Unrealized Appreciation (Depreciation)				Realized Gain				Value April 30, 2011				Dividend Income
Active Power, Inc.				$	—			$	12,072,036			$	(2,943,498	)		$	(287,430	)		$	1,064,172			$	9,905,280			$	—

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

April 30, 2011

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 fiscal year ended April 30, 2011.

S&P 500 BuyWrite Portfolio

				Value April 30, 2010				Purchase at Cost				Proceeds from Sales				Change in Unrealized Appreciation (Depreciation)				Realized Gain				Notional Value April 30, 2011				Dividend Income
Invesco Ltd				$	156,056			$	30,391			$	(87,876	)		$	(4,634	)		$	21,012			$	114,949			$	2,905

Note 7. Distributions to Shareholders and Tax Components of Net Assets

Tax Character of Distributions to Shareholders Paid During the Fiscal Years Ended April 30, 2011 and 2010:

	2011				2010
	Ordinary Income		Return of Capital		Ordinary Income		Return of Capital
Aerospace & Defense Portfolio	$	1,074,351	$	—	$	1,645,392	$	—
Cleantech^TM Portfolio		38,868		—		223,251		75,171
DWA Technical Leaders^TM Portfolio		639,994		—		843,823		—
Global Listed Private Equity Portfolio		14,909,521		—		4,710,562		—
Golden Dragon Halter USX China Portfolio		3,021,508		—		3,271,139		501,022
Lux Nanotech Portfolio		—		—		101,214		16
Morningstar StockInvestor Core Portfolio		132,812		—		145,806		—
S&P 500 BuyWrite Portfolio		11,066,172		—		1,778,095		—
S&P 500^® High Quality Portfolio		663,992		—		237,779		—
Water Resources Portfolio		6,570,710		—		9,289,108		—
WilderHill Clean Energy Portfolio		—		—		—		—
WilderHill Progressive Energy Portfolio		319,968		—		347,466		—

Tax Components of Net Assets at Fiscal Year-End:

	Undistributed Ordinary Income		Undistributed Long-term Capital Gains		Temporary Book/Tax Differences			Net Unrealized Appreciation (Depreciation)			Capital Loss Carryforward			Post-October* Deferrals			Shares of Beneficial Interest		Total Net Assets
Aerospace & Defense Portfolio	$	160,406	$	—	$	(8,889	)	$	(9,658,853	)	$	(25,843,550	)	$	(893,675	)	$	144,215,812	$	107,971,251
Cleantech^TM Portfolio		200,349		—		(7,352	)		27,126,954			(52,797,556	)		(8,584,966	)		196,593,012		162,530,441
DWA Technical Leaders^TM Portfolio		—		—		(10,205	)		70,159,585			(168,534,642	)		(3,558,553	)		552,847,954		450,904,139
Global Listed Private Equity Portfolio		21,813,808		—		(7,884	)		45,893,788			(55,296,478	)		(937,184	)		482,155,877		493,621,927
Golden Dragon Halter USX China Portfolio		488,111		—		(16,410	)		7,955,837			(137,775,029	)		(12,384,114	)		588,023,395		446,291,790

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

April 30, 2011

	Undistributed Ordinary Income		Undistributed Long-term Capital Gains		Temporary Book/Tax Differences			Net Unrealized Appreciation (Depreciation)			Capital Loss Carryforward			Post-October* Deferrals			Shares of Beneficial Interest		Total Net Assets
Lux Nanotech Portfolio	$	—	$	—	$	(5,613	)	$	(3,990,754	)	$	(59,228,657	)	$	(3,557,723	)	$	105,173,223	$	38,390,476
Morningstar StockInvestor Core Portfolio		85,066		—		(4,623	)		3,663,520			(30,328,775	)		(1	)		46,401,287		19,816,474
S&P 500 BuyWrite Portfolio		8,523,283		499,465		—			—			—			—			111,488,576		120,511,324
S&P 500^® High Quality Portfolio		671,925		—		(7,092	)		19,528,243			(139,345,851	)		—			231,847,511		112,694,736
Water Resources Portfolio		1,107,881		—		(48,841	)		108,823,303			(408,564,463	)		(10,311,889	)		1,569,642,038		1,260,648,029
WilderHill Clean Energy Portfolio		—		—		(29,770	)		(95,357,839	)		(1,099,718,852	)		(26,214,141	)		1,762,792,692		541,472,090
WilderHill Progressive Energy Portfolio		512,768		—		(5,273	)		13,564,008			(23,216,033	)		(1,523,506	)		85,843,293		75,175,257

* Capital, currency and Passive Foreign Investment Company ("PFIC") losses incurred after October 31 ("Post-October losses") within the taxable year are deemed to arise on the first business day of each Fund's next taxable year.

The following Funds have capital loss carryforward amounts as of April 30, 2011, which expire on April 30 of each year listed below:

	2014		2015		2016		2017		2018		2019		Total*
Aerospace & Defense Portfolio	$	—	$	104,662	$	2,374,303	$	7,470,897	$	6,428,813	$	9,464,875	$	25,843,550
Cleantech^TM Portfolio		—		—		1,171,839		14,341,075		25,186,026		12,098,616		52,797,556
DWA Technical Leaders^TM Portfolio		—		—		5,046,566		92,771,702		60,219,842		10,496,532		168,534,642
Global Listed Private Equity Portfolio**		—		—		460,027		7,687,052		47,149,399		—		55,296,478
Golden Dragon Halter USX China Portfolio		1,018,146		3,128,677		1,235,904		22,836,421		74,072,167		35,483,714		137,775,029

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

April 30, 2011

	2014		2015		2016		2017		2018		2019		Total*
Lux Nanotech Portfolio	$	—	$	3,986,980	$	793,005	$	27,406,131	$	14,663,516	$	12,379,025	$	59,228,657
Morningstar StockInvestor Core Portfolio		—		—		3,798,072		6,546,039		17,110,347		2,874,317		30,328,775
S&P 500^® High Quality Portfolio		—		28,753,751		21,013,690		37,241,965		42,466,537		9,869,908		139,345,851
Water Resources Portfolio		—		11,876,489		3,553,481		93,208,162		265,948,030		33,978,301		408,564,463
WilderHill Clean Energy Portfolio		2,098,368		89,533,576		44,707,703		261,712,498		460,657,845		241,008,862		1,099,718,852
WilderHill Progressive Energy Portfolio		—		—		179,432		8,319,827		12,433,887		2,282,887		23,216,033

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

** The Fund utilized $3,928,471 of capital loss capital loss carryforward during the fiscal year ended April 30, 2011.

Note 8. Investment Transactions

	Purchases		Sales
Aerospace & Defense Portfolio	$	14,144,178	$	13,864,632
Cleantech^TM Portfolio		37,334,287		35,646,098
DWA Technical Leaders^TM Portfolio		111,734,195		109,241,933
Global Listed Private Equity Portfolio		328,939,819		331,460,574
Golden Dragon Halter USX China Portfolio		72,591,710		66,060,952
Lux Nanotech Portfolio		25,884,489		26,370,058
Morningstar StockInvestor Core Portfolio		16,274,797		16,782,222
S&P 500 BuyWrite Portfolio		90,671,622		100,201,639
S&P 500^® High Quality Portfolio		57,119,119		56,574,081
Water Resources Portfolio		144,639,763		175,117,704
WilderHill Clean Energy Portfolio		183,112,107		178,272,215
WilderHill Progressive Energy Portfolio		13,280,818		14,341,926

For the fiscal year ended April 30, 2011, in-kind transactions associated with creations and redemptions were as follows:

	Securities Received		Securities Delivered
Aerospace & Defense Portfolio	$	52,485,882	$	88,297,222
Cleantech^TM Portfolio		10,037,570		36,741,081
DWA Technical Leaders^TM Portfolio		475,713,588		258,166,252
Global Listed Private Equity Portfolio		206,449,974		7,305,931
Golden Dragon Halter USX China Portfolio		43,002,416		118,278,835

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

April 30, 2011

	Securities Received		Securities Delivered
Lux Nanotech Portfolio	$	2,808,032	$	14,722,138
Morningstar StockInvestor Core Portfolio		16,173,728		16,557,973
S&P 500 BuyWrite Portfolio		—		56,320,439
S&P 500^® High Quality Portfolio		105,772,170		79,951,026
Water Resources Portfolio		119,825,356		280,545,348
WilderHill Clean Energy Portfolio		137,834,725		264,515,994
WilderHill Progressive Energy Portfolio		21,203,278		17,826,374

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

At April 30, 2011, the aggregate cost and the net unrealized appreciation (depreciation) of investments for tax purposes were as follows:

	Cost		Net Unrealized Appreciation (Depreciation)			Gross Unrealized Appreciation		Gross Unrealized (Depreciation)
Aerospace & Defense Portfolio	$	117,769,807	$	(9,658,853	)	$	3,793,718	$	(13,452,571	)
Cleantech^TM Portfolio		135,463,130		27,119,060			34,882,837		(7,763,777	)
DWA Technical Leaders^TM Portfolio		381,098,447		70,159,585			71,393,324		(1,233,739	)
Global Listed Private Equity Portfolio		443,522,279		45,870,270			51,636,722		(5,766,452	)
Golden Dragon Halter USX China Portfolio		438,287,054		7,955,837			91,211,867		(83,256,030	)
Lux Nanotech Portfolio		42,475,059		(3,990,754	)		5,072,106		(9,062,860	)
Morningstar StockInvestor Core Portfolio		16,211,027		3,663,520			3,786,074		(122,554	)
S&P 500 BuyWrite Portfolio		122,364,244		—			—		—
S&P 500^® High Quality Portfolio		93,219,955		19,528,243			19,871,066		(342,823	)
Water Resources Portfolio		1,152,092,918		108,823,303			192,639,529		(83,816,226	)
WilderHill Clean Energy Portfolio		637,375,142		(95,357,839	)		72,939,072		(168,296,911	)
WilderHill Progressive Energy Portfolio		61,687,183		13,564,008			16,445,328		(2,881,320	)

Note 9. Reclassification of Permanent Differences

Primarily as a result of differing book/tax treatment of investment activity, on April 30, 2011, amounts were reclassified between undistributed net investment income (loss), undistributed net realized gain (loss) and Shares of beneficial interest. These reclassifications had no effect on the net assets of each Fund. For the fiscal year ended April 30, 2011, the reclassifications were as follow:

	Undistributed Net Investment Income (Loss)			Undistributed Net Realized Gain (Loss)			Shares of Beneficial Interest
Aerospace & Defense Portfolio	$	9,800		$	5,316,734		$	(5,326,534	)
Cleantech^TM Portfolio		(246,807	)		(10,359,364	)		10,606,171

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

April 30, 2011

	Undistributed Net Investment Income (Loss)			Undistributed Net Realized Gain (Loss)			Shares of Beneficial Interest
DWA Technical Leaders^TM Portfolio	$	(515,582	)	$	(45,981,900	)	$	46,497,482
Global Listed Private Equity Portfolio		(491,010	)		(1,196,754	)		1,687,764
Golden Dragon Halter USX China Portfolio		145,866			(35,706,913	)		35,561,047
Lux Nanotech Portfolio		27,715			(488,063	)		460,348
Morningstar StockInvestor Core Portfolio		14,640			(1,840,332	)		1,825,692
S&P 500 BuyWrite Portfolio		71,222			—			(71,222	)
S&P 500^® High Quality Portfolio		(134,772	)		(13,121,778	)		13,256,550
Water Resources Portfolio		492,937			(42,770,821	)		42,277,884
WilderHill Clean Energy Portfolio		1,149,421			(46,780,667	)		45,631,246
WilderHill Progressive Energy Portfolio		7,103			(7,930,329	)		7,923,226

Note 10. Trustees' Fees

The Fund compensates each Trustee who is not an "interested person" as defined in the 1940 Act (an "Independent Trustee"). The Adviser, as a result of the unitary management fee, pays for such compensation for S&P 500 BuyWrite Portfolio. The Non-Independent Trustees of the Trust do not receive any Trustees' fees.

The Trust has adopted a deferred compensation plan (the "Plan"). Under the Plan, an Independent Trustee who 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 select 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 11. Capital

Note 12. Indemnifications

Report of Independent Registered Public Accounting Firm

To the Board of Trustees and Shareholders of PowerShares Exchange-Traded Fund Trust:

/s/ PricewaterhouseCoopers LLP
New York, New York
June 24, 2011

Tax Information

The following distribution information is being provided as required by the Internal Revenue Code or to meet a specific state's requirement.

Each Fund designates the following amounts or, if subsequently determined to be different, the maximum amount allowable for its fiscal year ended April 30, 2011:

Federal Income Tax Information

	Qualified Dividend Income*			Corporate Dividends-Received Deduction*
Aerospace & Defense Portfolio		100	%		100	%
Cleantech^TM Portfolio		100	%		100	%
DWA Technical Leaders^TM Portfolio		100	%		100	%
Global Listed Private Equity Portfolio		41	%		34	%
Golden Dragon Halter USX China Portfolio		100	%		0	%
Lux Nanotech Portfolio		0	%		0	%
S&P 500 BuyWrite Portfolio		0	%		0	%
Morningstar StockInvestor Core Portfolio		100	%		100	%
S&P 500^® High Quality Portfolio		100	%		100	%
Water Resources Portfolio		100	%		100	%
WilderHill Clean Energy Portfolio		0	%		0	%
WilderHill Progressive Energy Portfolio		100	%		95	%

The Fund intends to elect to pass through to shareholders the credit for taxes paid to foreign countries.

	April 30, 2011
	Foreign Source Income		Foreign Taxes
Golden Dragon Halter USX China Portfolio	$	7,292,686	$	742,117

* The above percentages are based on ordinary income dividends paid to shareholders during the Fund's fiscal year.

Trustees and Officers

The Trustees and officers information is current as of April 30, 2011.

Name, Address and Age of
Independent Trustees

Position(s)
Held with Trust

Term of
Office
and
Length of
Time
Served*

Principal
Occupation(s) During
Past 5 Years

Number of
Portfolios
in Fund
Complex
Overseen by
Independent
Trustees

Other Directorships Held
by Independent Trustees

Ronn R. Bagge
(53)
c/o Invesco PowerShares Capital Management LLC
301 West Roosevelt Road
Wheaton, IL 60187

Trustee

Since 2003

Founder and Principal, YQA Capital Management LLC (1998-Present); formerly Owner/CEO of Electronic Dynamic Balancing Co., Inc. (high-speed rotating equipment service provider)

107

None

Todd J. Barre
(53)
c/o Invesco PowerShares Capital Management LLC
301 West Roosevelt Road
Wheaton, IL 60187

Trustee

Since 2010

Assistant Professor of Business, Trinity Christian College (2010-Present); formerly Vice President and Senior Investment Strategist (2001-2008); Director of Open Architecture and Trading (2007-2008); Head of Fundamental Research (2004-2007); and Vice President and Senior Fixed Income Strategist (1994-2001), BMO Financial Group/Harris Private Bank

107

None

* This is the date the Trustee began serving the Trust. Each Trustee serves an indefinite term, until his successor is elected.

Trustees and Officers (Continued)

Name, Address and Age of
Independent Trustees

Position(s)
Held with Trust

Term of
Office
and
Length of
Time
Served*

Principal
Occupation(s) During
Past 5 Years

Number of
Portfolios
in Fund
Complex
Overseen by
Independent
Trustees

Other Directorships Held
by Independent Trustees

Marc M. Kole
(50)
c/o Invesco PowerShares Capital Management LLC
301 West Roosevelt Road
Wheaton, IL 60187

Trustee

Since 2006

107

None

Philip M. Nussbaum
(49)
c/o Invesco PowerShares Capital Management LLC
301 West Roosevelt Road
Wheaton, IL 60187

Trustee

Since 2003

Chairman, Performance Trust Capital Partners (2004-Present)

107

None

* This is the date the Trustee began serving the Trust. Each Trustee serves an indefinite term, until his successor is elected.

Trustees and Officers (Continued)

Name, Address and Age of
Independent Trustees

Position(s)
Held with Trust

Term of
Office
and
Length of
Time
Served*

Principal
Occupation(s) During
Past 5 Years

Number of
Portfolios
in Fund
Complex
Overseen by
Independent
Trustees

Other Directorships Held
by Independent Trustees

Donald H. Wilson
(51)
c/o Invesco PowerShares Capital Management LLC
301 West Roosevelt Road
Wheaton, IL 60187

Trustee

Since 2006

107

None

* This is the date the Trustee began serving the Trust. Each Trustee serves an indefinite term, until his successor is elected.

Trustees and Officers (Continued)

Name, Address and Age of
Interested Trustees

Position(s)
Held with Trust

Term of
Office
and
Length of
Time
Served*

Principal
Occupation(s) During
Past 5 Years

Number of
Portfolios
in Fund
Complex
Overseen by
Interested
Trustee

Other Directorships Held
by Interested Trustee

H. Bruce Bond
(47)
Invesco PowerShares Capital Management LLC
301 West Roosevelt Road
Wheaton, IL 60187

Chairman of the Board and Trustee

Since 2003

Chairman, Invesco Power-Shares Capital Management LLC (2009-Present); formerly, Managing Director, Invesco PowerShares Capital Management LLC (2002-2009); Manager, Nuveen Investments (1998-2002)

107

None

Kevin M. Carome
(54)
Invesco Ltd.
Two Peachtree Pointe
1555 Peachtree St., N.E.,
Suite 1800
Atlanta, GA 30309

Trustee

Since 2010

Senior Managing Director and General Counsel, Invesco Ltd. (2006-Present); formerly, Senior Vice President and General Counsel, Invesco Advisors, Inc. (2003-2005); Senior Vice President and General Counsel, Liberty Financial Companies, Inc. (2000-2001); General Counsel of certain investment management subsidiaries of Liberty Financial Companies, Inc. (1998-2000); Associate General Counsel, Liberty Financial Companies, Inc. (1993-1998); Associate, Ropes & Gray LLP

107

None

* This is the date the Interested Trustee began serving the Trust. Each Trustee serves an indefinite term, until his successor is elected.

Trustees and Officers (Continued)

Name, Address and
Age of Executive Officer

Position(s)
Held
with Trust

Length of
Time
Served*

Principal Occupation(s) During Past 5 Years

Andrew Schlossberg
(36)
Invesco Management Group, Inc.
11 Greenway Plaza
Suite 100
Houston, Texas 77046

President

Since 2009

Managing Director, U.S. head of business strategy and chief marketing officer for Invesco Ltd. in the United States (2008-Present); formerly, Mr. Schlossberg served in multiple roles within Invesco, including head of corporate development, as well as global leadership roles in strategy and product development in the company's North American Institutional and Retirement divisions (2002-2007)

Bruce T. Duncan
(56)
Invesco PowerShares Capital Management LLC
301 West Roosevelt Road
Wheaton, IL 60187

Treasurer and Secretary

Treasurer since 2006 and Secretary since 2008

Senior Vice President of Finance, Invesco PowerShares Capital Management LLC (2005-Present); formerly Private Practice Attorney (2000-2005); Vice President of Investor Relations, The ServiceMaster Company (1994-2000); Vice President of Taxes, The ServiceMaster Company (1990-2000)

Benjamin Fulton
(49)
Invesco PowerShares Capital Management LLC
301 West Roosevelt Road
Wheaton, IL 60187

Vice President

Since 2009

Executive Vice President – Global Product Development, Invesco PowerShares Capital Management LLC (2005-Present); formerly principal of Clermont Consulting, a consulting firm focused on the creation and development of retail investment products (2003-2005); President and a founding partner of Claymore Securities, a financial services firm in the Chicago land area (2001-2003); Managing Director of Structured Investments at Nuveen Investments (1998-2001)

Peter Hubbard
(29)
Invesco PowerShares Capital Management LLC
301 West Roosevelt Road
Wheaton, IL 60187

Vice President

Since 2009

* This is the period for which the Officers began serving the Trust. Each Officer serves a one-year term, until his successor is elected.

Trustees and Officers (Continued)

Name, Address and
Age of Executive Officer

Position(s)
Held
with Trust

Length of
Time
Served*

Principal Occupation(s) During Past 5 Years

David Warren
(53)
Invesco Trimark Ltd.
5140 Yonge Street
Suite 900
Toronto,
Ontario M2N 6X7

Vice President

Since 2009

Director, Executive Vice President and Chief Financial Officer, Invesco Trimark Ltd. and Chief Administrative Officer, North American Retail, Invesco Ltd (2007-Present); formerly, Director, Executive Vice President and Chief Financial Officer, Invesco Trimark Ltd. (2000-2006)

Todd Spillane
(51)
Invesco Management Group, Inc.
11 Greenway Plaza
Suite 100
Houston, Texas 77046

Chief Compliance Officer

Since 2010

Senior Vice President, Invesco Management Group, Inc.; Chief Compliance Officer, INVESCO Private Capital Investments, Inc. (holding company), Invesco Private Capital, Inc. (registered investment adviser) and Invesco Senior Secured Management, Inc. (registered investment adviser); Chief Compliance Officer and Senior Vice President, Invesco Advisers Inc. (formerly Invesco Institutional, (N.A.), Inc. – registered investment adviser) and Vice President, Invesco Distributors, Inc. and Invesco Investment Services, Inc.; formerly Chief Compliance Officer, Invesco Global Asset Management (N.A.), Inc. – registered investment adviser) and Invesco Advisers, Inc. (formerly Invesco Institutional (N.A.), Inc.) (registered investment adviser); Senior Vice President and Chief Compliance Officer, Invesco Advisors, Inc., Invesco Capital Management, Inc. and Invesco Private Asset Management, Inc.; Vice President, Invesco Capital Management, Inc. and Fund Management Company

Availability of Additional Information About the Trustees

The Statement of Additional Information includes additional information about the Trustees and is available, without charge, upon request at (800) 983-0903.

* This is the period for which the Officers began serving the Trust. Each Officer serves a one-year term, until his successor is elected.

Board Considerations Regarding Continuation of Investment Advisory Agreement

PowerShares Dynamic Market Portfolio

PowerShares Dynamic OTC Portfolio

PowerShares Golden Dragon Halter USX China Portfolio

PowerShares High Yield Equity Dividend Achievers^TM Portfolio

PowerShares WilderHill Clean Energy Portfolio

PowerShares Dynamic Large Cap Growth Portfolio

PowerShares Dynamic Large Cap Value Portfolio

PowerShares Dynamic Mid Cap Growth Portfolio

PowerShares Dynamic Mid Cap Value Portfolio

PowerShares Dynamic Small Cap Growth Portfolio

PowerShares Dynamic Small Cap Value Portfolio

PowerShares Dynamic Biotechnology & Genome Portfolio

PowerShares Dynamic Food & Beverage Portfolio

PowerShares Dynamic Leisure and Entertainment Portfolio

PowerShares Dynamic Media Portfolio

PowerShares Dynamic Networking Portfolio

PowerShares Dynamic Pharmaceuticals Portfolio

PowerShares Dynamic Semiconductors Portfolio

PowerShares Dynamic Software Portfolio

PowerShares Zacks Micro Cap Portfolio

PowerShares Aerospace & Defense Portfolio

PowerShares Morningstar StockInvestor Core Portfolio

PowerShares Dividend Achievers^TM Portfolio

PowerShares International Dividend Achievers^TM Portfolio

PowerShares Dynamic Building and Construction Portfolio

PowerShares Dynamic Energy Exploration and Production Portfolio

PowerShares WilderHill Progressive Energy Portfolio

PowerShares Dynamic Insurance Portfolio

PowerShares Dynamic Oil and Gas Services Portfolio

PowerShares Dynamic Retail Portfolio

PowerShares Dynamic Utilities Portfolio

PowerShares Lux Nanotech Portfolio

PowerShares FTSE RAFI US 1000 Portfolio

PowerShares FTSE RAFI US 1500 Small-Mid Portfolio

PowerShares Water Resources Portfolio

PowerShares Dynamic Energy Sector Portfolio

PowerShares Dynamic Financial Sector Portfolio

PowerShares Dynamic Healthcare Sector Portfolio

PowerShares Dynamic Industrials Sector Portfolio

PowerShares Dynamic Large Cap Portfolio

PowerShares Dynamic MagniQuant Portfolio

PowerShares Dynamic Mid Cap Portfolio

PowerShares Dynamic Small Cap Portfolio

PowerShares Dynamic Technology Sector Portfolio

PowerShares Buyback Achievers^TM Portfolio

PowerShares Cleantech^TM Portfolio

PowerShares Dynamic Banking Portfolio

PowerShares Dynamic Basic Materials Sector Portfolio

PowerShares Dynamic Consumer Discretionary Sector Portfolio

PowerShares Dynamic Consumer Staples Sector Portfolio

PowerShares Financial Preferred Portfolio

PowerShares Global Listed Private Equity Portfolio

PowerShares DWA Technical LeadersTM Portfolio

PowerShares S&P 500^® High Quality Portfolio

Board Considerations Regarding Continuation of Investment Advisory Agreement (Continued)

provided and estimated profits realized by the Adviser, (iv) the extent to which economies of scale are realized as the Funds grow, (v) whether fee levels reflect any possible economies of scale for the benefit of Fund shareholders, (vi) comparisons of services rendered and amounts paid to other registered investment companies and (vii) any benefits realized by the Adviser from its relationship with each Fund. Based on all of the information considered and the conclusions reached, the Board, including the Independent Trustees, determined to approve the continuation of the Investment Advisory Agreement for each Fund. No single factor was determinative in the Board's analysis.

Nature, Extent and Quality of Services. In evaluating the nature, extent and quality of the Adviser's services, the Trustees reviewed information concerning the functions performed by the Adviser for the Funds, information describing the Adviser's current organization and projected staffing, including operations assistance provided by the Adviser's parent organization, Invesco Ltd., and the background and experience of the persons responsible for the day-to-day management of the Funds. The Trustees reviewed matters related to the Adviser's execution of portfolio transactions on behalf of the Funds. The Trustees also reviewed information on the performance of the Funds and the performance of their underlying indices through December 31, 2010, including reports on the correlation and tracking error between the underlying index and each Fund's performance, as well as the Adviser's analysis of the tracking error between each Fund and its underlying index. The Trustees noted that, in each case, the correlation and tracking error for each Fund was within the targeted range set forth in the Trust's registration statement. The Trustees concluded that each Fund was correlated to its underlying index and that the tracking error for each Fund was within an acceptable range given that Fund's particular circumstances.

Fees, Expenses and Profitability. The Trustees reviewed and discussed the information provided by the Adviser on each Fund's expense ratio and advisory fee, as compared to information compiled by the Adviser from Lipper Inc. databases on the expense ratios of comparable exchange-traded funds ("ETFs"), open-end (non-ETF) index funds and open-end actively-managed funds. The Trustees noted that the annual advisory fee charged to each Fund is:

• 0.50% of the Fund's average net assets, for each Fund other than PowerShares High Yield Equity Dividend Achievers^TM Portfolio, PowerShares Dividend Achievers^TM Portfolio, PowerShares International Dividend Achievers^TM Portfolio, PowerShares FTSE RAFI US 1000 Portfolio and PowerShares FTSE RAFI US 1500 Small-Mid Portfolio;

• 0.40% of the Fund's average net assets, for each of PowerShares High Yield Equity Dividend Achievers^TM Portfolio, PowerShares Dividend Achievers^TM Portfolio and PowerShares International Dividend Achievers^TM Portfolio; and

• 0.29% of the Fund's average net assets, for each of PowerShares FTSE RAFI US 1000 Portfolio and PowerShares FTSE RAFI US 1500 Small-Mid Portfolio.

Board Considerations Regarding Continuation of Investment Advisory Agreement (Continued)

• 0.50%, excluding interest expenses, licensing fees, offering costs, brokerage commissions and other trading expenses, taxes and extraordinary expenses, for each of PowerShares High Yield Equity Dividend Achievers^TM Portfolio, PowerShares Dividend Achievers^TM Portfolio and PowerShares International Dividend Achievers^TM Portfolio;

• 0.60%, excluding interest expenses, licensing fees, offering costs, brokerage commissions and other trading expenses, taxes and extraordinary expenses, for each other Fund.

• higher than the median advisory fee of its open-end index peer funds (except for the advisory fee of each of PowerShares DWA Technical Leaders^TM Portfolio, PowerShares Dynamic Banking Portfolio, PowerShares Dynamic Basic Materials Sector Portfolio, PowerShares Dynamic Biotechnology & Genome Portfolio, PowerShares Dynamic Financial Sector Portfolio, PowerShares Dynamic Healthcare Portfolio, PowerShares Dynamic Insurance Portfolio, PowerShares Dynamic Mid Cap Growth Portfolio, PowerShares Dynamic Networking Portfolio, PowerShares Dynamic OTC Portfolio, PowerShares Dynamic Pharmaceuticals Portfolio, PowerShares Dynamic Semiconductors Portfolio, PowerShares Dynamic Small Cap Growth Portfolio, PowerShares Dynamic Software Portfolio, PowerShares Dynamic Technology Sector Portfolio, PowerShares Golden Dragon Halter USX China Portfolio, PowerShares Lux Nanotech Portfolio, PowerShares Morningstar StockInvestor Core Portfolio and PowerShares S&P 500^® High Quality Portfolio, which was equal to or lower than

100

Board Considerations Regarding Continuation of Investment Advisory Agreement (Continued)

the median advisory fee of its open-end index peer funds, and there was no comparable data for PowerShares Financial Preferred Portfolio or PowerShares Global Listed Private Equity Portfolio); but

• lower than the median advisory fee of its open-end actively-managed peer funds.

• higher than the median expense ratio of its open-end index peer funds (except for the net expense ratio of each of PowerShares Aerospace & Defense Portfolio, PowerShares Cleantech^TM Portfolio, PowerShares DWA Technical Leaders^TM Portfolio, PowerShares Dynamic Banking Portfolio, PowerShares Dynamic Basic Materials Sector Portfolio, PowerShares Dynamic Biotechnology & Genome Portfolio, PowerShares Dynamic Building & Construction Portfolio, PowerShares Dynamic Consumer Discretionary Sector Portfolio, PowerShares Dynamic Consumer Staples Sector Portfolio, PowerShares Dynamic Financial Sector Portfolio, PowerShares Dynamic Food & Beverage Portfolio, PowerShares Dynamic Healthcare Portfolio, PowerShares Dynamic Industrials Sector Portfolio, PowerShares Dynamic Insurance Portfolio, PowerShares Dynamic Large Cap Portfolio, PowerShares Dynamic Large Cap Growth Portfolio, PowerShares Dynamic Leisure and Entertainment Portfolio, PowerShares Dynamic Media Portfolio, PowerShares Dynamic Mid Cap Growth Portfolio, PowerShares Morningstar StockInvestor Core Portfolio, PowerShares Dynamic Networking Portfolio, PowerShares Dynamic OTC Portfolio, PowerShares Dynamic Pharmaceuticals Portfolio, PowerShares Dynamic Retail Portfolio, PowerShares Dynamic Semiconductors Portfolio, PowerShares Dynamic Small Cap Growth Portfolio, PowerShares Dynamic Small Cap Value Portfolio, PowerShares Dynamic Software Portfolio, PowerShares Dynamic Technology Sector Portfolio, PowerShares Dynamic Utilities Sector Portfolio, PowerShares FTSE RAFI US 1000 Portfolio, PowerShares FTSE RAFI US 1500 Small-Mid Portfolio, PowerShares Golden Dragon Halter USX China Portfolio, PowerShares Lux Nanotech Portfolio and PowerShares S&P 500^® High Quality Portfolio, which was equal to or lower than the median expense ratio of its open-end index peer funds, and there was no comparable data for PowerShares Financial Preferred Portfolio or PowerShares Global Listed Private Equity Portfolio); but

• lower than the median expense ratio of its open-end actively-managed peer funds.

The Board concluded that the advisory fee and expense ratio of each Fund (giving effect to the Fund's Expense Cap) were reasonable and appropriate in light of the services provided.

101

Board Considerations Regarding Continuation of Investment Advisory Agreement (Continued)

Economies of Scale and Whether Fee Levels Reflect These Economies of Scale. The Trustees reviewed the information provided by the Adviser as to the extent to which economies of scale are realized as each Fund grows and whether fee levels reflect economies of scale for the benefit of shareholders. The Trustees reviewed each Fund's asset size, expense ratio and expense limitation agreed to by the Adviser. The Trustees noted that, for Funds whose expenses are higher than their respective Expense Caps, any reduction in that Fund's expenses would be enjoyed by the Adviser, but that Fund shareholders benefit from the lower expense ratio as a result of the Fund's Expense Cap. The Trustees also noted that the Excess Expense Agreement with the Trust provides that the Adviser is entitled to be reimbursed by each Fund, other than PowerShares Dynamic Market Portfolio and PowerShares Dynamic OTC Portfolio, for fees waived or expenses absorbed pursuant to the Expense Cap for a period of three years from the date the fee or expense was incurred, provided that no reimbursement would be made that would result in a Fund exceeding its Expense Cap. The Trustees considered whether the advisory fee rate for each Fund was reasonable in relation to the asset size of that Fund, and concluded that the flat advisory fee was reasonable and appropriate, noting the Fund expenses the Adviser has borne as a result of the Expense Cap.

The Trustees noted that the Adviser had not identified any further benefits that it derived from its relationship with the Funds and had noted that it does not have any soft-dollar arrangements.

102

Board Considerations Regarding Continuation of Investment Advisory Agreement (Continued)

At a meeting held on April 14, 2011, the Board of Trustees of the PowerShares Exchange-Traded Fund Trust (the "Trust"), including the Independent Trustees, unanimously approved the continuation of the Investment Advisory Agreement between Invesco PowerShares Capital Management LLC (the "Adviser") and the Trust for PowerShares NASDAQ Internet Portfolio and PowerShares S&P 500 BuyWrite Portfolio (each, a "Fund" and collectively, the "Funds").

Nature, Extent and Quality of Services. In evaluating the nature, extent and quality of the Adviser's services, the Trustees reviewed information concerning the functions performed by the Adviser for the Funds, information describing the Adviser's current organization and projected staffing, including operations assistance provided by the Adviser's parent organization, Invesco Ltd., and the background and experience of the persons responsible for the day-to-day management of the Funds. The Trustees reviewed matters related to the Adviser's oversight of the execution of portfolio transactions on behalf of the Funds. The Trustees also reviewed information on the performance of the Funds and the performance of their underlying indices through December 31, 2010, including reports on the correlation and tracking error between the underlying index and each Fund's performance, as well as the Adviser's analysis of the tracking error between each Fund and its underlying index. The Trustees noted that, in each case, the correlation and tracking error for each Fund was within the targeted range set forth in the Trust's registration statement. The Trustees concluded that each Fund was correlated to its underlying index and that the tracking error for each Fund was within an acceptable range given that Fund's particular circumstances.

Fees, Expenses and Profitability. The Trustees reviewed and discussed the information provided by the Adviser on each Fund's total expense ratio and unitary advisory fee, as compared to information compiled by the Adviser from Lipper Inc. databases on the expense ratios of comparable exchange-traded funds ("ETFs"), open-end (non-ETF) index funds and open-end actively-managed funds. The Trustees noted that the annual unitary advisory fee is 0.60% for PowerShares NASDAQ Internet Portfolio and 0.75% for PowerShares S&P 500 BuyWrite Portfolio, and that the Adviser pays all other operating expenses of each Fund, except that each Fund pays its brokerage expenses, taxes, interest and extraordinary expenses.

103

Board Considerations Regarding Continuation of Investment Advisory Agreement (Continued)

The Trustees noted that the Adviser represented that it does not provide investment advisory services to any clients other than the Funds and other ETFs overseen by the Board. The Trustees noted that the advisory fee for each Fund was equal to or lower than the median expense ratios of its ETF peer funds, open-end index peer funds and open-end actively-managed peer funds. The Trustees noted that each Fund's advisory fee was reasonable because of the complexity of the indices, which generally require more frequent rebalancing of the portfolios, the distinguishing factors of the Funds and the higher administrative, operational and management oversight costs for the Adviser. The Trustees also noted that a portion of each Fund's advisory fee was attributable to a license fee payable out of the unitary fee charged to that Fund. The Board concluded that the unitary advisory fee charged to each Fund was reasonable and appropriate in light of the services provided.

In conjunction with their review of the unitary advisory fee, the Trustees also considered information provided by the Adviser on the revenues received by the Adviser under the Investment Advisory Agreement. The Trustees reviewed information provided by the Adviser on its profitability as well as any profits or losses realized by the Adviser from its relationship to each Fund. The Trustees concluded that the estimated profitability to the Adviser of the advisory services provided to any of the Funds was not unreasonable.

The Trustees noted that the Adviser had not identified any further benefits that it derived from its relationship with the Funds and had noted that it does not have any soft-dollar arrangements.

104

PROXY VOTING POLICIES AND PROCEDURES

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) 983-0903; 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' Forms N-Q are available on the Commission's website at www.sec.gov. The Funds' Forms N-Q 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

2011 Annual Report to Shareholders

April 30, 2011

PowerShares Dynamic Basic Materials Sector Portfolio (PYZ)

PowerShares Dynamic Consumer Discretionary Sector Portfolio (PEZ)

PowerShares Dynamic Consumer Staples Sector Portfolio (PSL)

PowerShares Dynamic Energy Sector Portfolio (PXI)

PowerShares Dynamic Financial Sector Portfolio (PFI)

PowerShares Dynamic Healthcare Sector Portfolio (PTH)

PowerShares Dynamic Industrials Sector Portfolio (PRN)

PowerShares Dynamic Technology Sector Portfolio (PTF)

PowerShares Dynamic Utilities Portfolio (PUI)

PowerShares NASDAQ Internet Portfolio (PNQI)

Table of Contents

The Market Environment					2

Manager's Analysis					4

Frequency Distribution of Discounts & Premiums					24

Fees and Expenses					26

Sector Portfolios

Schedules of Investments

PowerShares Dynamic Basic Materials Sector Portfolio (PYZ)					28

PowerShares Dynamic Consumer Discretionary Sector Portfolio (PEZ)					30

PowerShares Dynamic Consumer Staples Sector Portfolio (PSL)					32

PowerShares Dynamic Energy Sector Portfolio (PXI)					33

PowerShares Dynamic Financial Sector Portfolio (PFI)					34

PowerShares Dynamic Healthcare Sector Portfolio (PTH)					36

PowerShares Dynamic Industrials Sector Portfolio (PRN)					37

PowerShares Dynamic Technology Sector Portfolio (PTF)					39

PowerShares Dynamic Utilities Portfolio (PUI)					40

PowerShares NASDAQ Internet Portfolio (PNQI)					42

Statements of Assets and Liabilities					44

Statements of Operations					46

Statements of Changes in Net Assets					48

Financial Highlights					52

Notes to Financial Statements					57

Report of Independent Registered Public Accounting Firm					68

Tax Information					69

Trustees and Officers					70

Board Considerations Regarding Continuation of Investment Advisory Agreements					77

The Market Environment

For the fiscal year ended April 30, 2011, the market environment saw continued improvement. Global equities ended up 18.25% after declining the first two months of the period. Emerging markets led equities up during the fiscal year with the MSCI Emerging Markets Index returning 20.67%. Developed International and U.S. Equities followed closely behind emerging markets with the MSCI EAFE Index up 19.18% and the S&P 500^® Index up 17.24%. Volatility continued to decline on a year-over-year basis with the CBOE Volatility Index^® (VIX^®) dropping 33.11% for the fiscal year. Fixed income markets moved higher for the fiscal year with the Barclays Aggregate Bond Index ending up 5.37%.

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Manager's Analysis

PowerShares Dynamic Basic Materials Sector Portfolio (ticker: PYZ)

The PowerShares Dynamic Basic Materials Sector Portfolio (the "Fund") seeks investment results that correspond (before fees and expenses) generally to the price and yield performance of the Dynamic Basic Materials Sector Intellidex^SM Index (the "Index").

For the fiscal year ended April 30, 2011, the Fund returned 33.12%. Over this same year, the Index returned 34.14%, while the S&P Materials Index returned 26.26%. The Fund benefited from positive performance of securities of companies in chemicals, containers & packaging and metals & mining industries. Fund performance was positive for securities of companies within each industry in which it was invested.

Industry Breakdown (% of the Fund's

Net Assets) as of April 30, 2011

Chemicals-Specialty	26.4
Chemicals-Diversified	18.4
Paper & Related Products	12.7
Containers-Metal/Glass	6.3
Containers-Paper/Plastic	5.0
Metal-Copper	4.4
Agricultural Chemicals	4.3
Coatings/Paint	3.8
Diversified Manufacturing Operations	3.1
Gold Mining	2.5
Industrial Gases	2.4
Metal-Aluminum	2.3
Petrochemicals	1.8
Water Treatment Systems	1.4
Miscellaneous Manufacturing	1.4
Quarrying	1.3
Chemicals-Plastics	1.3
Non-Ferrous Metals	1.2
Money Market Fund	0.1
Liabilities in excess of other assets	(0.1	)

Top Ten Fund Holdings (% of the Fund's

Net Assets) as of April 30, 2011

*Security*
Lubrizol Corp. (The)					2.8
Celanese Corp.					2.8
Sigma-Aldrich Corp.					2.6
International Paper Co.					2.5
Ecolab, Inc.					2.5
PPG Industries, Inc.					2.5
Newmont Mining Corp.					2.5
E.I. du Pont de Nemours & Co.					2.4
Freeport-McMoRan Copper & Gold, Inc.					2.4
Air Products & Chemicals, Inc.					2.4
Total					25.4

Style Allocation (% of the Fund's

Total Investments) as of April 30, 2011

Large-Cap Growth					7.0
Large-Cap Value					16.5
Mid-Cap Growth					5.4
Mid-Cap Value					27.4
Small-Cap Value					29.9
Small-Cap Growth					13.8

Manager's Analysis (Continued)

PowerShares Dynamic Basic Materials Sector Portfolio (ticker: PYZ)

Growth of a $10,000 Investment Since Inception^†

Fund Performance History (%) As of April 30, 2011

	Avg Ann^††						Fund Inception^†
	1 Year			3 Year			Avg Ann^††			Cumulative
Index
Dynamic Basic Materials Sector Intellidex^SM Index		34.14	%		6.81	%		13.49	%		77.78	%
S&P Materials Index		26.26	%		1.00	%		8.26	%		43.88	%
Dow Jones Basic Materials Index		31.46	%		1.74	%		10.48	%		57.91	%
S&P 500^® Index		17.24	%		1.74	%		2.62	%		12.56	%
Fund
Net Asset Value ("NAV") Return		33.12	%		5.72	%		12.39	%		70.11	%
Share Price Return		32.98	%		5.74	%		12.41	%		70.21	%

Fund Inception: October 12, 2006

Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2012. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.91%. In the Financial Highlights section of this Shareholder Report, the Fund's net total operating expense ratio was determined to be 0.65%, while the Fund's gross total expense ratio was determined to be 0.80%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.

The S&P Materials Index, Dow Jones Basic Materials Index and S&P 500^® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 60, 70 and 500 common stocks, respectively.

^† Fund and underlying Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on the closest month-end to the Fund's inception date.

^†† Average annualized.

Manager's Analysis

PowerShares Dynamic Consumer Discretionary Sector Portfolio (ticker: PEZ)

The PowerShares Dynamic Consumer Discretionary Sector Portfolio (the "Fund") seeks investment results that correspond (before fees and expenses) generally to the price and yield performance of the Dynamic Consumer Discretionary Sector Intellidex^SM Index (the "Index").

For the fiscal year ended April 30, 2011, the Fund returned 16.91%. Over this same year, the Index returned 17.85%, while the S&P Consumer Discretionary Index returned 18.60% and the S&P 500^® Index returned 17.24%. The Fund benefited from positive performance of securities of companies in specialty retail, auto components, and leisure equipment & products industries. The Fund suffered from negative performance for securities of companies in diversified consumer services, household durables, and airlines industries.

Industry Breakdown (% of the Fund's

Net Assets) as of April 30, 2011

Retail	52.7
Auto Parts & Equipment	7.1
Apparel	6.5
Media	6.2
Commercial Services	6.1
Internet	2.8
Airlines	2.7
Auto Manufacturers	2.2
Advertising	2.1
Leisure Time	1.8
Home Furnishings	1.7
Distribution/Wholesale	1.6
Household Products/Wares	1.5
Entertainment	1.3
Machinery-Diversified	1.3
Housewares	1.2
Textiles	1.2
Money Market Fund	0.3
Liabilities in excess of other assets	(0.3	)

Top Ten Fund Holdings (% of the Fund's

Net Assets) as of April 30, 2011

*Security*
Limited Brands, Inc.					3.0
Priceline.com, Inc.					2.8
Bed Bath & Beyond, Inc.					2.7
Starbucks Corp.					2.6
Coach, Inc.					2.5
Time Warner Cable, Inc.					2.5
Yum! Brands, Inc.					2.5
TJX Cos., Inc. (The)					2.5
McDonald's Corp.					2.5
Nordstrom, Inc.					2.4
Total					26.0

Style Allocation (% of the Fund's

Total Investments) as of April 30, 2011

Large-Cap Growth					24.9
Large-Cap Value					4.9
Mid-Cap Growth					21.1
Mid-Cap Value					9.5
Small-Cap Value					27.2
Small-Cap Growth					12.4

Manager's Analysis (Continued)

PowerShares Dynamic Consumer Discretionary Sector Portfolio (ticker: PEZ)

Growth of a $10,000 Investment Since Inception^†

Fund Performance History (%) As of April 30, 2011

	Avg Ann^††						Fund Inception^†
	1 Year			3 Year			Avg Ann^††			Cumulative
Index
Dynamic Consumer Discretionary Sector Intellidex^SM Index		17.85	%		8.23	%		3.00	%		14.37	%
S&P Consumer Discretionary Index		18.60	%		10.00	%		4.99	%		24.99	%
S&P 500^® Index		17.24	%		1.74	%		2.62	%		12.56	%
Fund
Net Asset Value ("NAV") Return		16.91	%		7.77	%		2.46	%		11.70	%
Share Price Return		16.77	%		7.74	%		2.46	%		11.69	%

Fund Inception: October 12, 2006

Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2012. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 1.32%. In the Financial Highlights section of this Shareholder Report, the Fund's net total operating expense ratio was determined to be 0.65%, while the Fund's gross total expense ratio was determined to be 1.24%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.

The S&P Consumer Discretionary Index and S&P 500^® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 182 and 500 common stocks, respectively.

^† Fund and underlying Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on the closest month-end to the Fund's inception date.

^†† Average annualized.

Manager's Analysis

PowerShares Dynamic Consumer Staples Sector Portfolio (ticker: PSL)

The PowerShares Dynamic Consumer Staples Sector Portfolio (the "Fund") seeks investment results that correspond (before fees and expenses) generally to the price and yield performance of the Dynamic Consumer Staples Sector Intellidex^SM Index (the "Index").

For the fiscal year ended April 30, 2011, the Fund returned 19.46%. Over this same year, the Index returned 20.32%, while the S&P Consumer Staples Index returned 17.99% and the S&P 500^® Index returned 17.24%. The Fund benefited from positive performance of securities of companies in food products, beverages, and tobacco industries. Fund performance was positive for securities of companies within each industry in which it was invested.

Industry Breakdown (% of the Fund's

Net Assets) as of April 30, 2011

Food	33.8
Retail	16.6
Beverages	14.7
Cosmetics/Personal Care	11.4
Agriculture	11.3
Household Products/Wares	5.1
Pharmaceuticals	4.2
Environmental Control	1.5
Electrical Components & Equipment	1.4
Money Market Fund	0.1
Liabilities in excess of other assets	(0.1	)

Style Allocation (% of the Fund's

Total Investments) as of April 30, 2011

Large-Cap Growth					26.3
Large-Cap Value					21.5
Mid-Cap Growth					8.2
Mid-Cap Value					17.8
Small-Cap Value					22.4
Small-Cap Growth					3.8

Top Ten Fund Holdings (% of the Fund's

Net Assets) as of April 30, 2011

*Security*
Philip Morris International, Inc.					2.6
CVS Caremark Corp.					2.6
Costco Wholesale Corp.					2.6
Reynolds American, Inc.					2.5
PepsiCo, Inc.					2.5
Colgate-Palmolive Co.					2.5
Kellogg Co.					2.5
Altria Group, Inc.					2.5
Wal-Mart Stores, Inc.					2.5
Coca-Cola Co. (The)					2.4
Total					25.2

Manager's Analysis (Continued)

PowerShares Dynamic Consumer Staples Sector Portfolio (ticker: PSL)

Growth of a $10,000 Investment Since Inception^†

Fund Performance History (%) As of April 30, 2011

	Avg Ann^††						Fund Inception^†
	1 Year			3 Year			Avg Ann^††			Cumulative
Index
Dynamic Consumer Staples Sector Intellidex^SM Index		20.32	%		8.09	%		7.35	%		38.08	%
S&P Consumer Staples Index		17.99	%		7.03	%		7.85	%		41.42	%
S&P 500^® Index		17.24	%		1.74	%		2.62	%		12.56	%
Fund
Net Asset Value ("NAV") Return		19.46	%		7.28	%		6.59	%		33.67	%
Share Price Return		19.50	%		7.30	%		6.59	%		33.68	%

Fund Inception: October 12, 2006

Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2012. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.87%. In the Financial Highlights section of this Shareholder Report, the Fund's net total operating expense ratio was determined to be 0.65%, while the Fund's gross total expense ratio was determined to be 0.94%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.

The S&P Consumer Staples Index and S&P 500^® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 96 and 500 common stocks, respectively.

^† Fund and underlying Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on the closest month-end to the Fund's inception date.

^†† Average annualized.

Manager's Analysis

PowerShares Dynamic Energy Sector Portfolio (ticker: PXI)

The PowerShares Dynamic Energy Sector Portfolio (the "Fund") seeks investment results that correspond(before fees and expenses) generally to the price and yield performance of the Dynamic Energy Sector Intellidex^SM Index (the "Index").

For the fiscal year ended April 30, 2010, the Fund returned 51.01%. Over this same year, the Index returned 51.97%, while the S&P Energy Index returned 35.86%, the Dow Jones Oil & Gas Index returned 35.17% and the S&P 500^® Index returned 17.24%. The Fund benefited from positive performance of securities of companies in oil gas & consumable fuels, energy equipment & services and gas utilities industries. Fund performance was positive for securities of companies within each industry in which it was invested.

Industry Breakdown (% of the Fund's

Net Assets) as of April 30, 2011

Oil Companies-Exploration & Production	16.9
Oil Companies-Integrated	14.8
Gas-Distribution	14.4
Pipelines	14.4
Coal	9.1
Oil-Field Services	7.7
Oil Field Machinery & Equipment	6.2
Oil Refining & Marketing	5.2
Oil & Gas Drilling	5.0
Seismic Data Collection	2.4
Electric-Integrated	1.4
Transportation-Services	1.2
Retail-Petroleum Products	1.2
Money Market Fund	0.1
Liabilities in excess of other assets	(0.0	)

Top Ten Fund Holdings (% of the Fund's

Net Assets) as of April 30, 2011

*Security*
Marathon Oil Corp.					2.6
Occidental Petroleum Corp.					2.6
Spectra Energy Corp.					2.6
Halliburton Co.					2.5
Chevron Corp.					2.5
Murphy Oil Corp.					2.5
El Paso Corp.					2.5
Sempra Energy					2.4
Exxon Mobil Corp.					2.4
Peabody Energy Corp.					2.4
Total					25.0

Style Allocation (% of the Fund's

Total Investments) as of April 30, 2011

Large-Cap Growth					7.2
Large-Cap Value					27.0
Mid-Cap Growth					4.9
Mid-Cap Value					18.7
Small-Cap Value					31.6
Small-Cap Growth					10.6

Manager's Analysis (Continued)

PowerShares Dynamic Energy Sector Portfolio (ticker: PXI)

Growth of a $10,000 Investment Since Inception^†

Fund Performance History (%) As of April 30, 2011

	Avg Ann^††						Fund Inception^†
	1 Year			3 Year			Avg Ann^††			Cumulative
Index
Dynamic Energy Sector Intellidex^SM Index		51.97	%		5.99	%		14.01	%		81.51	%
S&P Energy Index		35.86	%		0.95	%		10.52	%		58.16	%
Dow Jones Oil & Gas Index		35.17	%		0.92	%		10.84	%		60.30	%
S&P 500^® Index		17.24	%		1.74	%		2.62	%		12.56	%
Fund
Net Asset Value ("NAV") Return		51.01	%		5.44	%		13.37	%		76.94	%
Share Price Return		51.07	%		5.50	%		13.40	%		77.14	%

Fund Inception: October 12, 2006

Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2012. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.93%. In the Financial Highlights section of this Shareholder Report, the Fund's net total operating expense ratio was determined to be 0.65%, while the Fund's gross total expense ratio was determined to be 0.74%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.

The S&P Energy Index, Dow Jones Oil & Gas Index and S&P 500^® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 78, 92 and 500 common stocks, respectively.

^† Fund and underlying Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on the closest month-end to the Fund's inception date.

^†† Average annualized.

Manager's Analysis

PowerShares Dynamic Financial Sector Portfolio (ticker: PFI)

The PowerShares Dynamic Financial Sector Portfolio (the "Fund") seeks investment results that correspond (before fees and expenses) generally to the price and yield performance of the Dynamic Financial Sector Intellidex^SM Index (the "Index").

For the fiscal year ended April 30, 2011, the Fund returned 12.76%. Over this same year, the Index returned 13.53%, while the S&P Financials Index returned 2.58%, the Dow Jones Financials Index returned 2.16% and the S&P 500^® Index returned 17.24%. The Fund benefited from positive performance of securities of companies in insurance, consumer finance and diversified financial services industries. The Fund suffered negative performance for securities of companies in commercial banks, capital markets, and thrifts & mortgage finance industries.

Industry Breakdown (% of the Fund's

Net Assets) as of April 30, 2011

Property/Casualty Insurance	21.0
Investment Management/ Advisor Services	12.6
Life/Health Insurance	11.2
Multi-line Insurance	6.6
Commercial Banks-Eastern U.S.	6.4
Commercial Banks-Central U.S.	4.1
Reinsurance	4.0
Real Estate Management/Services	4.0
Insurance Brokers	4.0
Diversified Operations	2.9
Finance-Other Services	2.9
Finance-Credit Card	2.8
Commercial Services-Finance	2.8
Fiduciary Banks	2.6
Super-Regional Banks-U.S.	2.3
Finance-Auto Loans	1.5
Finance-Consumer Loans	1.5
Finance-Commercial	1.5
REITS-Diversified	1.5
Commercial Banks-Southern U.S.	1.3
Finance-Investment Banker/Broker	1.3
Private Equity	1.2
Money Market Fund	0.3
Liabilities in excess of other assets	(0.3	)

Top Ten Fund Holdings (% of the Fund's

Net Assets) as of April 30, 2011

*Security*
Leucadia National Corp.					2.9
Discover Financial Services					2.8
Chubb Corp. (The)					2.7
Progressive Corp. (The)					2.6
CB Richard Ellis Group, Inc.					2.6
Travelers Cos., Inc. (The)					2.6
State Street Corp.					2.6
Franklin Resources, Inc.					2.5
Loews Corp.					2.5
M&T Bank Corp.					2.4
Total					26.2

Style Allocation (% of the Fund's

Total Investments) as of April 30, 2011

Large-Cap Growth					7.0
Large-Cap Value					20.3
Mid-Cap Growth					17.7
Mid-Cap Value					22.7
Small-Cap Value					24.2
Small-Cap Growth					8.1

Manager's Analysis (Continued)

PowerShares Dynamic Financial Sector Portfolio (ticker: PFI)

Growth of a $10,000 Investment Since Inception^†

Fund Performance History (%) As of April 30, 2011

	Avg Ann^††						Fund Inception^†
	1 Year			3 Year			Avg Ann^††			Cumulative
Index
Dynamic Financial Sector Intellidex^SM Index		13.53	%		-1.52	%		-2.50	%		-10.89	%
S&P Financials Index		2.58	%		-12.92	%		-13.04	%		-47.28	%
Dow Jones Financials Index		2.16	%		-11.87	%		-12.84	%		-46.75	%
S&P 500^® Index		17.24	%		1.74	%		2.62	%		12.56	%
Fund
Net Asset Value ("NAV") Return		12.76	%		-2.40	%		-3.31	%		-14.18	%
Share Price Return		12.77	%		-2.41	%		-3.31	%		-14.18	%

Fund Inception: October 12, 2006

Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2012. According to the Fund's current prospectus, the total gross annual operating expense ratio of 1.26% includes estimated acquired fund fees and expenses of 0.01%. In the Financial Highlights section of this Shareholder Report, the Fund's net total operating expense ratio was determined to be 0.65%, while the Fund's gross total expense ratio was determined to be 1.30%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.

The S&P Financials Index, Dow Jones Financials Index and S&P 500^® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 82, 262 and 500 common stocks, respectively.

^† Fund and underlying Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on the closest month-end to the Fund's inception date.

^†† Average annualized.

Manager's Analysis

PowerShares Dynamic Healthcare Sector Portfolio (ticker: PTH)

The PowerShares Dynamic Healthcare Sector Portfolio (the "Fund") seeks investment results that correspond (before fees and expenses) generally to the price and yield performance of the Dynamic Healthcare Sector Intellidex^SM Index (the "Index").

For the fiscal year ended April 30, 2011, the Fund returned 22.31%. Over this same year, the Index returned 23.15%, while the S&P Health Care Index returned 16.42%, the Dow Jones U.S. Health Care Index returned 17.08% and the S&P 500^® Index returned 17.24%. The Fund benefited from positive performance of securities of companies in health care providers & services, pharmaceuticals and biotechnology industries. Fund performance was positive for securities of companies within each industry in which it was invested.

Industry Breakdown (% of the Fund's

Net Assets) as of April 30, 2011

Healthcare-Services	35.2
Pharmaceuticals	21.6
Healthcare-Products	20.7
Biotechnology	8.2
Commercial Services	5.3
Electronics	5.1
Software	2.5
Distribution/Wholesale	1.4
Money Market Fund	0.2
Liabilities in excess of other assets	(0.2	)

Style Allocation (% of the Fund's

Total Investments) as of April 30, 2011

Large-Cap Growth					9.0
Large-Cap Value					18.3
Mid-Cap Growth					17.7
Mid-Cap Value					13.5
Small-Cap Value					16.2
Small-Cap Growth					25.3

Top Ten Fund Holdings (% of the Fund's

Net Assets) as of April 30, 2011

*Security*
Biogen Idec, Inc.					3.2
Humana, Inc.					2.7
Waters Corp.					2.7
UnitedHealth Group, Inc.					2.6
WellPoint, Inc.					2.6
CIGNA Corp.					2.5
Aetna, Inc.					2.5
Amgen, Inc.					2.5
AmerisourceBergen Corp.					2.4
Eli Lilly & Co.					2.4
Total					26.1

Manager's Analysis (Continued)

PowerShares Dynamic Healthcare Sector Portfolio (ticker: PTH)

Growth of a $10,000 Investment Since Inception^†

Fund Performance History (%) As of April 30, 2011

	Avg Ann^††						Fund Inception^†
	1 Year			3 Year			Avg Ann^††			Cumulative
Index
Dynamic Healthcare Sector Intellidex^SM Index		23.15	%		7.63	%		6.03	%		30.49	%
S&P Health Care Index		16.42	%		5.99	%		3.34	%		16.23	%
Dow Jones U.S. Health Care Index		17.08	%		7.17	%		4.53	%		22.53	%
S&P 500^® Index		17.24	%		1.74	%		2.62	%		12.56	%
Fund
Net Asset Value ("NAV") Return		22.31	%		6.82	%		5.23	%		26.07	%
Share Price Return		22.48	%		6.87	%		5.25	%		26.19	%

Fund Inception: October 12, 2006

Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2012. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.72%. In the Financial Highlights section of this Shareholder Report, the Fund's net total operating expense ratio was determined to be 0.65%, while the Fund's gross total expense ratio was determined to be 0.83%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.

The S&P Health Care Index, Dow Jones U.S. Healthcare Index and S&P 500^® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 82, 126 and 500 common stocks, respectively.

^† Fund and underlying Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on the closest month-end to the Fund's inception date.

^†† Average annualized.

Manager's Analysis

PowerShares Dynamic Industrials Sector Portfolio (ticker: PRN)

The PowerShares Dynamic Industrials Sector Portfolio (the "Fund") seeks investment results that correspond (before fees and expenses) generally to the price and yield performance of the Dynamic Industrial Sector Intellidex^SM Index (the "Index").

For the fiscal year ended April 30, 2010, the Fund returned 29.83%. Over this same year, the Index returned 30.93%, while the S&P Industrials Index returned 20.25%, the Dow Jones Industrial Index returned 19.44% and the S&P 500^® Index returned 17.24%. The Fund benefited from positive performance of securities of companies in machinery, aerospace & defense and commercial services industries. The Fund suffered negative performance for securities of companies in professional services and marine industries.

Industry Breakdown (% of the Fund's

Net Assets) as of April 30, 2011

Miscellaneous Manufacturing	25.2
Commercial Services	12.9
Aerospace/Defense	12.2
Transportation	12.0
Machinery-Diversified	10.9
Engineering & Construction	5.3
Machinery-Construction & Mining	5.2
Office Furnishings	4.0
Hand/Machine Tools	2.8
Electrical Components & Equipment	2.6
Computers	1.4
Household Products/Wares	1.4
Trucking & Leasing	1.4
Electronics	1.4
Semiconductors	1.3
Money Market Fund	0.1
Liabilities in excess of other assets	(0.1	)

Top Ten Fund Holdings (% of the Fund's

Net Assets) as of April 30, 2011

*Security*
Caterpillar, Inc.					2.7
Union Pacific Corp.					2.6
AMETEK, Inc.					2.6
Tyco International Ltd.					2.6
Sauer-Danfoss, Inc.					2.5
United Technologies Corp.					2.5
Joy Global, Inc.					2.5
Honeywell International, Inc.					2.5
Parker Hannifin Corp.					2.5
Dover Corp.					2.5
Total					25.5

Style Allocation (% of the Fund's

Total Investments) as of April 30, 2011

Large-Cap Growth					7.5
Large-Cap Value					21.9
Mid-Cap Growth					14.1
Mid-Cap Value					7.2
Small-Cap Value					31.7
Small-Cap Growth					17.6

Manager's Analysis (Continued)

PowerShares Dynamic Industrials Sector Portfolio (ticker: PRN)

Growth of a $10,000 Investment Since Inception^†

Fund Performance History (%) As of April 30, 2011

	Avg Ann^††						Fund Inception^†
	1 Year			3 Year			Avg Ann^††			Cumulative
Index
Dynamic Industrial Sector Intellidex^SM Index		30.93	%		4.25	%		6.98	%		35.89	%
S&P Industrials Index		20.25	%		1.85	%		4.45	%		22.10	%
Dow Jones Industrial Index		19.44	%		2.94	%		4.84	%		24.19	%
S&P 500^® Index		17.24	%		1.74	%		2.62	%		12.56	%
Fund
Net Asset Value ("NAV") Return		29.83	%		3.32	%		6.11	%		30.96	%
Share Price Return		29.92	%		3.33	%		6.13	%		31.05	%

Fund Inception: October 12, 2006

Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2012. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.82%. In the Financial Highlights section of this Shareholder Report, the Fund's net total operating expense ratio was determined to be 0.65%, while the Fund's gross total expense ratio was determined to be 0.87%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.

The S&P Industrials Index, Dow Jones Industrial Index and S&P 500^® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 400, 30 and 500 common stocks, respectively.

^† Fund and underlying Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on the closest month-end to the Fund's inception date.

^†† Average annualized.

Manager's Analysis

PowerShares Dynamic Technology Sector Portfolio (ticker: PTF)

The PowerShares Dynamic Technology Sector Portfolio (the "Fund") seeks investment results that correspond (before fees and expenses) generally to the price and yield performance of the Dynamic Technology Sector Intellidex^SM Index (the "Index").

For the fiscal year ended April 30, 2011, the Fund returned 17.26%. Over this same year, the Index returned 18.13%, while the S&P Information Technology Index returned 13.16%, the Dow Jones Technology Index returned 15.19% and the S&P 500^® Index returned 17.24%. The Fund benefited from positive performance of securities of companies in IT services, Software, and office electronics industries. The Fund suffered from negative performance for securities of companies in internet software & services industries.

Industry Breakdown (% of the Fund's

Net Assets) as of April 30, 2011

Computers	21.6
Software	19.6
Commercial Services	15.8
Electronics	15.4
Semiconductors	13.1
Telecommunications	6.3
Internet	4.4
Distribution/Wholesale	2.4
Media	1.4
Money Market Fund	0.2
Liabilities in excess of other assets	(0.2	)

Style Allocation (% of the Fund's

Total Investments) as of April 30, 2011

Large-Cap Growth					20.9
Large-Cap Value					8.0
Mid-Cap Growth					17.4
Mid-Cap Value					10.4
Small-Cap Value					12.2
Small-Cap Growth					31.1

Top Ten Fund Holdings (% of the Fund's

Net Assets) as of April 30, 2011

*Security*
Agilent Technologies, Inc.					2.9
Automatic Data Processing, Inc.					2.7
Symantec Corp.					2.7
International Business Machines Corp.					2.6
BMC Software, Inc.					2.5
TE Connectivity Ltd.					2.5
Apple, Inc.					2.5
Texas Instruments, Inc.					2.5
CA, Inc.					2.5
Paychex, Inc.					2.5
Total					25.9

Manager's Analysis (Continued)

PowerShares Dynamic Technology Sector Portfolio (ticker: PTF)

Growth of a $10,000 Investment Since Inception^†

Fund Performance History (%) As of April 30, 2011

	Avg Ann^††						Fund Inception^†
	1 Year			3 Year			Avg Ann^††			Cumulative
Index
Dynamic Technology Sector Intellidex^SM Index		18.13	%		4.41	%		2.49	%		11.83	%
S&P Information Technology Index		13.16	%		5.98	%		6.46	%		33.22	%
Dow Jones Technology Index		15.19	%		7.56	%		7.34	%		38.34	%
S&P 500^® Index		17.24	%		1.74	%		2.62	%		12.56	%
Fund
Net Asset Value ("NAV") Return		17.26	%		3.68	%		1.78	%		8.36	%
Share Price Return		17.27	%		3.70	%		1.77	%		8.32	%

Fund Inception: October 12, 2006

Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2012. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.90%. In the Financial Highlights section of this Shareholder Report, the Fund's net total operating expense ratio was determined to be 0.65%, while the Fund's gross total expense ratio was determined to be 0.91%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.

The S&P Information Technology Index, Dow Jones Technology Index and S&P 500^® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 119, 166 and 500 common stocks, respectively.

^† Fund and underlying Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on the closest month-end to the Fund's inception date.

^†† Average annualized.

Manager's Analysis

PowerShares Dynamic Utilities Portfolio (ticker: PUI)

The PowerShares Dynamic Utilities Portfolio (the "Fund") seeks investment results that correspond (before fees and expenses) generally to the price and yield performance of the Dynamic Utilities Intellidex^SM Index (the "Index").

Effective October 1, 2010, the index methodology was amended to increase the number of common stocks of U.S. utilities companies in the Index from 30 to 60 and to include common stocks of U.S. utilities companies that provide telecommunications services.

For the fiscal year ended April 30, 2011, the Fund returned 18.36%. Over this same year, the Index returned 19.25%, while the S&P Utilities Index returned 13.85%, the Dow Jones U.S. Utilities Index returned 15.62% and the S&P 500^® Index returned 17.24%. The Fund benefited from positive performance of securities of companies in multi-utilities, electric utilities and diversified telecommunication services. The Fund suffered negative performance for securities of companies in oil gas & consumable fuels and independent power producers & energy traders industries.

Industry Breakdown (% of the Fund's

Net Assets) as of April 30, 2011

Electric-Integrated	50.5
Telephone-Integrated	9.0
Gas-Distribution	7.7
Cable/Satellite TV	7.5
Cellular Telecommunications	6.9
Telecommunication Services	4.6
Wireless Equipment	3.2
Telecommunication Equipment	2.7
Broadcast Services/Program	1.4
Water	1.4
Electric-Transmission	1.3
Independent Power Producer	1.3
Internet Connectivity Services	1.3
Electronic Measuring Instruments	1.2
Money Market Fund	0.0
Liabilities in excess of other assets	(0.0	)

Style Allocation (% of the Fund's

Total Investments) as of April 30, 2011

Large-Cap Growth					7.8
Large-Cap Value					33.2
Mid-Cap Growth					6.8
Mid-Cap Value					20.2
Small-Cap Value					17.9
Small-Cap Growth					14.1

Top Ten Fund Holdings (% of the Fund's

Net Assets) as of April 30, 2011

*Security*
Sprint Nextel Corp.					2.8
AT&T, Inc.					2.6
Time Warner Cable, Inc.					2.6
Edison International					2.6
DIRECTV					2.5
Consolidated Edison, Inc.					2.5
Verizon Communications, Inc.					2.5
Duke Energy Corp.					2.5
Comcast Corp.					2.4
American Electric Power Co., Inc.					2.4
Total					25.4

Manager's Analysis (Continued)

PowerShares Dynamic Utilities Portfolio (ticker: PUI)

Growth of a $10,000 Investment Since Inception^†

Fund Performance History (%) As of April 30, 2011

	Avg Ann^††									Fund Inception^†
	1 Year			3 Year			5 Year			Avg Ann^††			Cumulative
Index
Dynamic Utilities Intellidex^SM Index		19.25	%		0.93	%		4.83	%		5.89	%		37.07	%
S&P Utilities Index		13.85	%		-1.88	%		5.20	%		4.97	%		30.57	%
Dow Jones U.S. Utilities Index		15.62	%		-1.40	%		5.55	%		5.20	%		32.12	%
S&P 500^® Index		17.24	%		1.74	%		2.95	%		4.41	%		26.81	%
Fund
Net Asset Value ("NAV") Return		18.36	%		0.22	%		4.13	%		5.17	%		32.01	%
Share Price Return		18.42	%		0.24	%		4.15	%		5.20	%		32.25	%

Fund Inception: October 26, 2005

Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2012. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.95%. In the Financial Highlights section of this Shareholder Report, the Fund's net total operating expense ratio was determined to be 0.63%, while the Fund's gross total expense ratio was determined to be 0.89%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.

The S&P Utilities Index, Dow Jones U.S. Utilities Index and S&P 500^® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 33, 15 and 500 common stocks, respectively.

^† Fund and underlying Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on the closest month-end to the Fund's inception date.

^†† Average annualized.

Manager's Analysis

PowerShares NASDAQ Internet Portfolio (ticker: PNQI)

The PowerShares NASDAQ Internet Portfolio (the "Fund") seeks investment results that correspond (before fees and expenses) generally to the price and yield performance of the NASDAQ Internet Index^SM (the "Index").

For the fiscal year ended April 30, 2011, the Fund returned 47.80%. Over this same year the Index returned 48.70% while the NASDAQ-100^® Index returned 21.07% and the S&P 500^® Index returned 17.24%. The Fund benefited from positive performance of securities of companies in the information technology and consumer discretionary sectors. Fund performance was positive for securities of companies within each sector in which it was invested.

Industry Breakdown (% of the Fund's

Net Assets) as of April 30, 2011

Web Portals/ISP	28.8
E-Commerce/Services	27.9
E-Commerce/Products	11.8
Web Hosting/Design	6.1
Internet Security	3.4
Internet Infrastructure Software	3.4
E-Marketing/Information	2.9
Enterprise Software/Services	2.4
Telecommunication Services	2.0
Internet Content-Information/Network	1.9
Internet Content-Information/News	1.6
E-Services/Consulting	1.5
Internet Application Software	1.2
Printing-Commercial	1.2
Human Resources	1.1
Internet Telephony	0.7
Internet Connectivity Services	0.6
Networking Products	0.5
Internet Content-Entertainment	0.4
Computer Services	0.3
Retail-Pet Food & Supplies	0.2
Internet Incubators	0.1
Liabilities in excess of other assets	(0.0	)

Top Ten Fund Holdings (% of the Fund's

Net Assets) as of April 30, 2011

*Security*
Baidu, Inc.					8.7
Priceline.com, Inc.					8.6
Amazon.com, Inc.					8.0
eBay, Inc.					7.3
Google, Inc.					6.3
SINA Corp.					4.2
Netflix, Inc.					4.0
Yahoo!, Inc.					3.8
VeriSign, Inc.					3.3
Akamai Technologies, Inc.					3.3
Total					57.5

Style Allocation (% of the Fund's

Total Investments) as of April 30, 2011

Large-Cap Growth					44.6
Large-Cap Value					—
Mid-Cap Growth					30.7
Mid-Cap Value					1.1
Small-Cap Value					1.0
Small-Cap Growth					22.6

Manager's Analysis (Continued)

PowerShares NASDAQ Internet Portfolio (ticker: PNQI)

Growth of a $10,000 Investment Since Inception^†

Fund Performance History (%) As of April 30, 2011

	Avg Ann^††			Fund Inception^†
	1 Year			Avg Ann^††			Cumulative
Index
NASDAQ Internet Index^SM		48.70	%		21.56	%		75.54	%
NASDAQ-100^® Index		21.07	%		6.64	%		20.62	%
S&P 500^® Index		17.24	%		1.34	%		3.96	%
Fund
Net Asset Value ("NAV") Return		47.80	%		20.87	%		72.67	%
Share Price Return		47.81	%		20.24	%		70.10	%

Fund Inception: June 12, 2008

The NASDAQ-100^® Index and S&P 500^® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 100 and 500 common stocks, respectively.

^† Fund and underlying Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on the closest month-end to the Fund's inception date.

^†† Average annualized.

Frequency Distribution of Discounts & Premiums

Since Inception through April 30, 2011

					Closing Price Above NAV (bps)
Ticker	Fund Name	Inception	Trading Days		0-24		25-49		50-99		100-149		150-199		200+
PYZ	PowerShares Dynamic Basic Materials Sector Portfolio	10/12/06		1145		507		21		4		0		0		0
PEZ	PowerShares Dynamic Consumer Discretionary Sector Portfolio	10/12/06		1145		446		17		4		0		0		2
PSL	PowerShares Dynamic Consumer Staples Sector Portfolio	10/12/06		1145		402		15		6		0		0		2
PXI	PowerShares Dynamic Energy Sector Portfolio	10/12/06		1145		473		15		8		2		0		0
PFI	PowerShares Dynamic Financial Sector Portfolio	10/12/06		1145		459		24		8		1		1		1
PTH	PowerShares Dynamic Healthcare Sector Portfolio	10/12/06		1145		357		13		12		0		0		0
PRN	PowerShares Dynamic Industrials Sector Portfolio	10/12/06		1145		524		13		8		0		0		1
PTF	PowerShares Dynamic Technology Sector Portfolio	10/12/06		1145		452		56		9		1		1		1
PUI	PowerShares Dynamic Utilities Portfolio	10/26/05		1387		545		27		5		1		1		1
PNQI	PowerShares NASDAQ Internet Portfolio	6/12/08		693		289		9		5		1		2		2

	Closing Price Below NAV (bps)
Ticker	-0-24		-25-49		-50-99		-100-149		-150-199		-200+
PYZ		597		13		3		0		0		0
PEZ		665		9		1		0		0		1
PSL		711		8		1		0		0		0
PXI		629		10		6		1		0		1
PFI		619		20		6		4		2		0
PTH		754		9		0		0		0		0
PRN		588		11		0		0		0		0
PTF		609		13		1		0		0		2
PUI		790		16		0		0		1		0
PNQI		378		5		1		0		0		1

Fees and Expenses

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 April 30, 2011.

In pursuing its investment objective, PowerShares Dynamic Financial Sector Portfolio (the "Portfolio") may invest a portion of its assets in investment companies. The Fund indirectly bears a pro rata share of the fees and expenses of the investment companies in which the Fund invests. The effect of such expenses are included in the Portfolio's total return.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value November 1, 2010		Ending Account Value April 30, 2011		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During the Six-Month Period ⁽¹⁾
PowerShares Dynamic Basic Materials
Sector Portfolio Actual	$	1,000.00	$	1,251.68		0.65	%	$	3.63
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.57		0.65	%	$	3.26
PowerShares Dynamic Consumer
Discretionary Sector Portfolio
Actual	$	1,000.00	$	1,179.37		0.65	%	$	3.51
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.57		0.65	%	$	3.26
PowerShares Dynamic Consumer Staples
Sector Portfolio
Actual	$	1,000.00	$	1,145.52		0.65	%	$	3.46
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.57		0.65	%	$	3.26

Fees and Expenses (Continued)

	Beginning Account Value November 1, 2010		Ending Account Value April 30, 2011		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During the Six-Month Period ⁽¹⁾
PowerShares Dynamic Energy Sector Portfolio Actual	$	1,000.00	$	1,410.17		0.65	%	$	3.88
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.57		0.65	%	$	3.26
PowerShares Dynamic Financial Sector Portfolio Actual	$	1,000.00	$	1,168.45		0.65	%	$	3.49
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.57		0.65	%	$	3.26
PowerShares Dynamic Healthcare Sector Portfolio Actual	$	1,000.00	$	1,245.94		0.65	%	$	3.62
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.57		0.65	%	$	3.26
PowerShares Dynamic Industrials Sector Portfolio Actual	$	1,000.00	$	1,243.57		0.65	%	$	3.62
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.57		0.65	%	$	3.26
PowerShares Dynamic Technology Sector
Portfolio
Actual	$	1,000.00	$	1,154.03		0.65	%	$	3.47
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.57		0.65	%	$	3.26
PowerShares Dynamic Utilities Portfolio Actual	$	1,000.00	$	1,123.60		0.63	%	$	3.32
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.67		0.63	%	$	3.16
PowerShares NASDAQ Internet Portfolio Actual	$	1,000.00	$	1,197.41		0.60	%	$	3.27
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.82		0.60	%	$	3.01

Schedule of Investments

PowerShares Dynamic Basic Materials Sector Portfolio

April 30, 2011

Number of Shares			Value
		Common Stocks—100.0%
		Agricultural Chemicals—4.3%
	15,907	CF Industries Holdings, Inc.	$	2,251,636
	26,234	Mosaic Co. (The)		1,963,877
				4,215,513
		Chemicals - Diversified—18.4%
	54,313	Celanese Corp., Series A		2,711,305
	41,202	E.I. du Pont de Nemours & Co.		2,339,862
	15,981	FMC Corp.		1,410,803
	37,845	Georgia Gulf Corp.*		1,490,336
	28,384	Innophos Holdings, Inc.		1,315,314
	45,074	Innospec, Inc.*		1,697,487
	25,482	PPG Industries, Inc.		2,412,381
	26,498	Rockwood Holdings, Inc.*		1,503,496
	52,743	Solutia, Inc.*		1,389,778
	25,971	Westlake Chemical Corp.		1,704,996
				17,975,758
		Chemicals - Plastics—1.3%
	86,863	PolyOne Corp.		1,257,776
		Chemicals - Specialty—26.4%
	21,228	Albemarle Corp.		1,497,635
	33,597	Arch Chemicals, Inc.		1,299,196
	34,397	Balchem Corp.		1,365,217
	28,666	Cabot Corp.		1,285,670
	46,191	Ecolab, Inc.		2,437,037
	77,353	Ferro Corp.*		1,160,295
	57,159	H.B. Fuller Co.		1,248,924
	36,525	Kraton Performance Polymers, Inc.*		1,685,994
	20,539	Lubrizol Corp. (The)		2,762,906
	18,894	Minerals Technologies, Inc.		1,284,792
	9,555	NewMarket Corp.		1,761,178
	33,719	OM Group, Inc.*		1,221,977
	31,538	Quaker Chemical Corp.		1,424,887
	36,275	Sensient Technologies Corp.		1,374,460
	35,424	Sigma-Aldrich Corp.		2,500,226
	32,251	W.R. Grace & Co.*		1,462,905
				25,773,299
		Coatings/Paint—3.8%
	24,373	Kronos Worldwide, Inc.		1,500,402
	27,268	Sherwin-Williams Co. (The)		2,243,884
				3,744,286
		Containers - Metal/Glass—6.3%
	61,714	Ball Corp.		2,302,549
	31,554	Crown Holdings, Inc.*		1,180,120
	18,814	Greif, Inc., Class A		1,168,349
	33,038	Silgan Holdings, Inc.		1,515,123
				6,166,141

Number of Shares			Value
		Common Stocks (Continued)
		Containers - Paper/Plastic—5.0%
	240,634	Graphic Packaging Holding Co.*	$	1,321,081
	17,484	Rock-Tenn Co., Class A		1,207,620
	44,268	Sealed Air Corp.		1,140,786
	33,784	Sonoco Products Co.		1,167,575
				4,837,062
		Diversified Manufacturing Operations—3.1%
	29,960	Koppers Holdings, Inc.		1,370,071
	41,179	LSB Industries, Inc.*		1,661,572
				3,031,643
		Gold Mining—2.5%
	40,907	Newmont Mining Corp.		2,397,559
		Industrial Gases—2.4%
	24,371	Air Products & Chemicals, Inc.		2,327,918
		Metal - Aluminum—2.3%
	133,567	Alcoa, Inc.		2,270,639
		Metal - Copper—4.4%
	42,476	Freeport-McMoRan Copper & Gold, Inc.		2,337,454
	52,531	Southern Copper Corp.		1,967,811
				4,305,265
		Miscellaneous Manufacturing—1.4%
	25,295	AptarGroup, Inc.		1,326,723
		Non-Ferrous Metals—1.2%
	28,911	Materion Corp.*		1,207,323
		Paper & Related Products—12.7%
	141,254	Boise, Inc.		1,387,114
	46,293	Buckeye Technologies, Inc.		1,303,611
	15,056	Clearwater Paper Corp.*		1,181,595
	13,766	Domtar Corp.		1,280,514
	79,340	International Paper Co.		2,450,019
	70,364	KapStone Paper and Packaging Corp.*		1,222,926
	40,901	MeadWestvaco Corp.		1,377,955
	89,222	Mercer International, Inc.*		1,085,832
	21,942	Schweitzer-Mauduit International, Inc.		1,137,473
				12,427,039
		Petrochemicals—1.8%
	43,107	TPC Group, Inc.*		1,700,140
		Quarrying—1.3%
	13,208	Compass Minerals International, Inc.		1,289,233
		Water Treatment Systems—1.4%
	47,213	Nalco Holding Co.		1,379,092
		Total Common Stocks (Cost $76,995,897)		97,632,409

See Notes to Financial Statements.

Schedule of Investments (Continued)

PowerShares Dynamic Basic Materials Sector Portfolio

April 30, 2011

Number of Shares			Value
		Money Market Fund—0.1%
	90,855	Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $90,855)	$	90,855
		Total Investments (Cost $77,086,752)—100.1%		97,723,264
		Liabilities in excess of other assets—(0.1%)		(132,064	)
		Net Assets—100.0%	$	97,591,200

Notes to Schedule of Investments:

* Non-income producing security.

See Notes to Financial Statements.

Schedule of Investments

PowerShares Dynamic Consumer Discretionary Sector Portfolio

April 30, 2011

Number of Shares			Value
		Common Stocks—100.0%
		Advertising—2.1%
	21,017	Harte-Hanks, Inc.	$	195,248
	20,833	Interpublic Group of Cos., Inc. (The)		244,788
				440,036
		Airlines—2.7%
	4,422	Alaska Air Group, Inc.*		291,277
	16,648	SkyWest, Inc.		275,191
				566,468
		Apparel—6.5%
	8,826	Coach, Inc.		527,883
	3,832	Polo Ralph Lauren Corp.		501,111
	7,196	Timberland Co. (The), Class A*		325,187
				1,354,181
		Auto Manufacturers—2.2%
	14,439	General Motors Co.*		463,347
		Auto Parts & Equipment—7.1%
	3,525	Autoliv, Inc.		282,458
	4,928	Lear Corp.		252,018
	13,286	Superior Industries International, Inc.		335,737
	4,541	TRW Automotive Holdings Corp.*		259,110
	4,467	WABCO Holdings, Inc.*		329,888
				1,459,211
		Commercial Services—6.1%
	5,721	Apollo Group, Inc., Class A*		229,012
	6,526	Arbitron, Inc.		252,426
	14,232	Bridgepoint Education, Inc.*		249,772
	7,948	Rent-A-Center, Inc.		242,016
	34,321	Stewart Enterprises, Inc., Class A		278,343
				1,251,569
		Distribution/Wholesale—1.6%
	3,363	Fossil, Inc.*		322,108
		Entertainment—1.3%
	6,404	Churchill Downs, Inc.		267,111
		Home Furnishings—1.7%
	5,559	Tempur-Pedic International, Inc.*		348,994
		Household Products/Wares—1.5%
	4,849	Tupperware Brands Corp.		308,736
		Housewares—1.2%
	13,485	Newell Rubbermaid, Inc.		257,024
		Internet—2.8%
	1,044	Priceline.com, Inc.*		571,078
		Leisure Time—1.8%
	3,476	Polaris Industries, Inc.		366,475

Number of Shares			Value
		Common Stocks (Continued)
		Machinery - Diversified—1.3%
	2,910	Middleby Corp. (The)*	$	260,940
		Media—6.2%
	19,055	Comcast Corp., Class A		500,003
	27,888	E.W. Scripps Co. (The), Class A*		264,936
	6,752	Time Warner Cable, Inc.		527,534
				1,292,473
		Retail—52.7%
	17,071	American Eagle Outfitters, Inc.		265,625
	10,980	Ann, Inc.*		342,686
	8,374	Ascena Retail Group, Inc.*		262,023
	10,057	Bed Bath & Beyond, Inc.*		564,399
	625	Biglari Holdings, Inc.*		273,275
	8,447	Bob Evans Farms, Inc.		264,898
	10,994	Brinker International, Inc.		264,845
	6,836	Buckle, Inc. (The)		310,970
	11,278	Collective Brands, Inc.*		236,838
	5,231	Cracker Barrel Old Country Store, Inc.		267,984
	6,241	Dillard's, Inc., Class A		299,693
	5,189	Dollar Tree, Inc.*		298,368
	14,460	Express, Inc.*		312,191
	13,576	Foot Locker, Inc.		292,156
	21,157	Gap, Inc. (The)		491,689
	11,828	Jack in the Box, Inc.*		244,248
	14,889	Limited Brands, Inc.		612,831
	6,466	McDonald's Corp.		506,352
	10,580	Nordstrom, Inc.		503,079
	9,030	Papa John's International, Inc.*		271,442
	18,799	Pep Boys - Manny, Moe & Jack (The)		257,546
	6,361	PetSmart, Inc.		268,243
	26,776	Pier 1 Imports, Inc.*		326,132
	6,699	Ross Stores, Inc.		493,649
	29,325	Sonic Corp.*		329,027
	14,808	Starbucks Corp.		535,902
	9,193	Target Corp.		451,376
	9,562	TJX Cos., Inc. (The)		512,714
	7,184	Williams-Sonoma, Inc.		311,857
	9,624	Yum! Brands, Inc.		516,231
				10,888,269
		Textiles—1.2%
	4,639	UniFirst Corp.		240,115
		Total Common Stocks (Cost $17,949,333)		20,658,135

See Notes to Financial Statements.

Schedule of Investments (Continued)

PowerShares Dynamic Consumer Discretionary Sector Portfolio

April 30, 2011

Number of Shares			Value
		Money Market Fund—0.3%
	56,651	Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $56,651)	$	56,651
		Total Investments (Cost $18,005,984)—100.3%		20,714,786
		Liabilities in excess of other assets—(0.3%)		(58,015	)
		Net Assets—100.0%	$	20,656,771

Notes to Schedule of Investments:

* Non-income producing security.

See Notes to Financial Statements.

Schedule of Investments

PowerShares Dynamic Consumer Staples Sector Portfolio

April 30, 2011

Number of Shares			Value
		Common Stocks—100.0%
		Agriculture—11.3%
	38,041	Altria Group, Inc.	$	1,021,021
	25,660	Archer-Daniels-Midland Co.		949,933
	15,239	Philip Morris International, Inc.		1,058,196
	27,919	Reynolds American, Inc.		1,036,074
	12,387	Universal Corp.		537,348
				4,602,572
		Beverages—14.7%
	5,645	Boston Beer Co., Inc., Class A*		532,098
	7,511	Brown-Forman Corp., Class B		539,741
	9,274	Coca-Cola Bottling Co. Consolidated		653,353
	14,752	Coca-Cola Co. (The)		995,170
	19,435	Coca-Cola Enterprises, Inc.		552,148
	25,388	Constellation Brands, Inc., Class A*		568,437
	14,175	Dr Pepper Snapple Group, Inc.		555,660
	8,752	Hansen Natural Corp.*		578,945
	14,917	PepsiCo, Inc.		1,027,632
				6,003,184
		Cosmetics/Personal Care—11.4%
	12,127	Colgate-Palmolive Co.		1,022,913
	17,167	Elizabeth Arden, Inc.*		516,040
	10,177	Estee Lauder Cos., Inc. (The), Class A		987,169
	28,264	Inter Parfums, Inc.		537,864
	15,099	Procter & Gamble Co. (The)		979,925
	35,033	Revlon, Inc., Class A*		603,268
				4,647,179
		Electrical Components & Equipment—1.4%
	7,543	Energizer Holdings, Inc.*		569,723
		Environmental Control—1.5%
	36,572	Darling International, Inc.*		591,369
		Food—33.8%
	35,936	B&G Foods, Inc.		649,723
	22,452	ConAgra Foods, Inc.		548,951
	10,575	Corn Products International, Inc.		582,683
	19,211	Flowers Foods, Inc.		587,088
	18,656	Fresh Del Monte Produce, Inc.		505,764
	25,545	General Mills, Inc.		985,526
	10,328	H.J. Heinz Co.		529,103
	17,346	Hain Celestial Group, Inc. (The)*		589,937
	9,940	Hershey Co. (The)		573,637
	19,020	Hormel Foods Corp.		559,378
	7,537	J.M. Smucker Co. (The)		565,803
	17,850	Kellogg Co.		1,022,270
	22,589	Kroger Co. (The)		549,139
	8,974	Lancaster Colony Corp.		548,401
	10,908	McCormick & Co., Inc.		535,801
	14,002	Ruddick Corp.		581,363
	23,974	Safeway, Inc.		582,808
	30,128	Sara Lee Corp.		578,458

Number of Shares			Value
		Common Stocks (Continued)
	227	Seaboard Corp.	$	541,849
	22,550	Smithfield Foods, Inc.*		531,278
	27,366	Tyson Foods, Inc., Class A		544,583
	13,150	Weis Markets, Inc.		542,701
	8,922	Whole Foods Market, Inc.		559,945
				13,796,189
		Household Products/Wares—5.1%
	6,918	Church & Dwight Co., Inc.		570,597
	14,541	Kimberly-Clark Corp.		960,578
	12,732	WD-40 Co.		528,378
				2,059,553
		Pharmaceuticals—4.2%
	6,603	Herbalife Ltd. (Cayman Islands)		592,817
	8,507	Mead Johnson Nutrition Co.		568,948
	14,608	USANA Health Sciences, Inc.*		544,879
				1,706,644
		Retail—16.6%
	10,638	BJ's Wholesale Club, Inc.*		545,942
	12,333	Casey's General Stores, Inc.		481,357
	12,895	Costco Wholesale Corp.		1,043,463
	28,798	CVS Caremark Corp.		1,043,640
	16,173	Nu Skin Enterprises, Inc., Class A		518,992
	14,428	PriceSmart, Inc.		600,782
	39,180	Sally Beauty Holdings, Inc.*		579,472
	22,548	Walgreen Co.		963,251
	18,334	Wal-Mart Stores, Inc.		1,008,003
				6,784,902
		Total Common Stocks (Cost $32,737,053)		40,761,315
		Money Market Fund—0.1%
	53,774	Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $53,774)		53,774
		Total Investments (Cost $32,790,827)—100.1%		40,815,089
		Liabilities in excess of other assets—(0.1%)		(43,319	)
		Net Assets—100.0%	$	40,771,770

Notes to Schedule of Investments:

* Non-income producing security.

See Notes to Financial Statements.

Schedule of Investments

PowerShares Dynamic Energy Sector Portfolio

April 30, 2011

Number of Shares			Value
		Common Stocks and Other Equity Interests—99.9%
		Coal—9.1%
	44,910	Alliance Holdings GP LP	$	2,346,548
	45,015	Alpha Natural Resources, Inc.*		2,618,523
	73,654	Arch Coal, Inc.		2,526,332
	123,993	Cloud Peak Energy, Inc.*		2,581,534
	69,065	Peabody Energy Corp.		4,614,923
	20,490	Walter Energy, Inc.		2,832,128
				17,519,988
		Electric - Integrated—1.4%
	83,902	NorthWestern Corp.		2,731,010
		Gas - Distribution—14.4%
	72,932	Atmos Energy Corp.		2,544,597
	40,357	Energen Corp.		2,623,609
	63,437	Laclede Group, Inc. (The)		2,434,078
	129,818	NiSource, Inc.		2,524,960
	139,062	Questar Corp.		2,443,319
	84,408	Sempra Energy		4,650,881
	87,113	Southern Union Co.		2,604,679
	63,192	Southwest Gas Corp.		2,513,146
	76,854	UGI Corp.		2,559,238
	93,752	Vectren Corp.		2,679,432
				27,577,939
		Oil & Gas Drilling—5.0%
	58,119	Diamond Offshore Drilling, Inc.		4,409,489
	37,975	Helmerich & Payne, Inc.		2,519,261
	41,331	Unit Corp.*		2,604,680
				9,533,430
		Oil Companies - Exploration & Production—16.9%
	47,945	Berry Petroleum Co., Class A		2,547,318
	110,413	BreitBurn Energy Partners LP		2,452,273
	24,247	Clayton Williams Energy, Inc.*		2,196,051
	40,064	Contango Oil & Gas Co.*		2,480,763
	150,184	Energy Partners Ltd.*		2,734,851
	83,702	Gulfport Energy Corp.*		2,849,216
	43,744	Occidental Petroleum Corp.		4,999,502
	281,791	PetroQuest Energy, Inc.*		2,468,489
	156,989	Quicksilver Resources, Inc.*		2,331,287
	310,218	VAALCO Energy, Inc.*		2,162,219
	96,888	W&T Offshore, Inc.		2,597,567
	37,605	Whiting Petroleum Corp.*		2,613,547
				32,433,083
		Oil Companies - Integrated—14.8%
	44,172	Chevron Corp.		4,834,184
	58,361	ConocoPhillips		4,606,434
	52,849	Exxon Mobil Corp.		4,650,712
	53,186	Hess Corp.		4,571,869
	92,759	Marathon Oil Corp.		5,012,696
	61,386	Murphy Oil Corp.		4,756,187
				28,432,082

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
		Oil Field Machinery & Equipment—6.2%
	86,894	Complete Production Services, Inc.*	$	2,949,182
	97,365	FMC Technologies, Inc.*		4,525,525
	56,495	National Oilwell Varco, Inc.		4,332,602
				11,807,309
		Oil Refining & Marketing—5.2%
	130,712	CVR Energy, Inc.*		2,905,728
	157,914	Valero Energy Corp.		4,468,966
	152,417	Western Refining, Inc.*		2,584,992
				9,959,686
		Oil - Field Services—7.7%
	127,136	Basic Energy Services, Inc.*		3,908,161
	95,899	Halliburton Co.		4,840,981
	130,022	RPC, Inc.		3,517,095
	25,599	SEACOR Holdings, Inc.		2,529,949
				14,796,186
		Pipelines—14.4%
	156,192	Atlas Energy LP		4,164,079
	85,446	Atlas Pipeline Partners LP		3,158,084
	96,094	Chesapeake Midstream Partners LP*		2,674,296
	243,918	El Paso Corp.		4,734,448
	66,976	NuStar GP Holdings LLC		2,654,259
	38,430	ONEOK, Inc.		2,687,794
	171,094	Spectra Energy Corp.		4,968,570
	68,697	Western Gas Partners LP		2,521,180
				27,562,710
		Retail - Petroleum Products—1.2%
	59,479	World Fuel Services Corp.		2,354,179
		Seismic Data Collection—2.4%
	198,872	ION Geophysical Corp.*		2,513,742
	23,432	OYO Geospace Corp.*		2,185,737
				4,699,479
		Transportation - Services—1.2%
	51,154	Bristow Group, Inc.*		2,373,545
		Total Common Stocks and Other Equity Interests (Cost $160,457,181)		191,780,626
		Money Market Fund—0.1%
	167,030	Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $167,030)		167,030
		Total Investments (Cost $160,624,211)—100.0%		191,947,656
		Liabilities in excess of other assets—(0.0%)		(44,811	)
		Net Assets—100.0%	$	191,902,845

Notes to Schedule of Investments:

* Non-income producing security.

See Notes to Financial Statements.

Schedule of Investments

PowerShares Dynamic Financial Sector Portfolio

April 30, 2011

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Commercial Banks - Central U.S.—4.1%
	5,871	BOK Financial Corp.	$	315,743
	7,502	Commerce Bancshares, Inc.		319,285
	15,768	International Bancshares Corp.		277,832
				912,860
		Commercial Banks - Eastern U.S.—6.4%
	39,339	CapitalSource, Inc.		262,785
	11,170	Independent Bank Corp.		327,393
	6,235	M&T Bank Corp.		550,987
	13,444	NBT Bancorp, Inc.		303,834
				1,444,999
		Commercial Banks - Southern U.S.—1.3%
	8,727	City Holding Co.		297,591
		Commercial Services - Finance—2.8%
	15,666	Cardtronics, Inc.*		332,902
	12,987	SEI Investments Co.		290,000
				622,902
		Diversified Operations—2.9%
	16,748	Leucadia National Corp.		647,478
		Fiduciary Banks—2.6%
	12,328	State Street Corp.		573,868
		Finance - Auto Loans—1.5%
	4,268	Credit Acceptance Corp.*		345,281
		Finance - Commercial—1.5%
	28,343	NewStar Financial, Inc.*		338,699
		Finance - Consumer Loans—1.5%
	5,000	World Acceptance Corp.*		339,750
		Finance - Credit Card—2.8%
	25,310	Discover Financial Services		628,700
		Finance - Investment Banker/Broker—1.3%
	7,935	Raymond James Financial, Inc.		297,563
		Finance - Other Services—2.9%
	31,330	BGC Partners, Inc., Class A		302,335
	13,987	MarketAxess Holdings, Inc.		340,583
				642,918
		Insurance Brokers—4.0%
	9,651	Arthur J. Gallagher & Co.		287,407
	11,450	Brown & Brown, Inc.		295,982
	4,362	Erie Indemnity Co., Class A		315,940
				899,329

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
		Investment Management/Advisor Services—12.6%
	2,806	Affiliated Managers Group, Inc.*	$	306,078
	8,697	Ameriprise Financial, Inc.		539,736
	10,971	Federated Investors, Inc., Class B		282,832
	4,421	Franklin Resources, Inc.		570,840
	18,635	Och-Ziff Capital Management Group LLC, Class A		299,464
	8,230	T. Rowe Price Group, Inc.		528,778
	7,290	Waddell & Reed Financial, Inc., Class A		298,963
				2,826,691
		Life/Health Insurance—11.2%
	9,548	Aflac, Inc.		536,502
	9,778	FBL Financial Group, Inc., Class A		298,229
	10,648	Protective Life Corp.		286,538
	8,530	Prudential Financial, Inc.		540,972
	4,665	Torchmark Corp.		312,182
	20,765	Unum Group		549,857
				2,524,280
		Multi-line Insurance—6.6%
	8,731	American Financial Group, Inc.		312,308
	17,689	Horace Mann Educators Corp.		316,279
	12,873	Loews Corp.		569,759
	14,651	United Fire & Casualty Co.		290,090
				1,488,436
		Private Equity—1.2%
	45,477	Fortress Investment Group LLC, Class A*		280,593
		Property/Casualty Insurance—21.0%
	15,611	AmTrust Financial Services, Inc.		301,292
	9,190	Chubb Corp. (The)		599,096
	8,333	Harleysville Group, Inc.		267,323
	9,587	HCC Insurance Holdings, Inc.		311,961
	4,897	Infinity Property & Casualty Corp.		289,413
	733	Markel Corp.*		305,866
	29,255	Meadowbrook Insurance Group, Inc.		299,571
	4,686	ProAssurance Corp.*		311,150
	27,028	Progressive Corp. (The)		592,994
	5,236	RLI Corp.		310,181
	6,266	Safety Insurance Group, Inc.		293,374
	11,030	Tower Group, Inc.		252,256
	9,267	Travelers Cos., Inc. (The)		586,416
				4,720,893
		Real Estate Management/Services—4.0%
	22,183	CB Richard Ellis Group, Inc., Class A*		592,508
	3,079	Jones Lang LaSalle, Inc.		315,228
				907,736

See Notes to Financial Statements.

Schedule of Investments (Continued)

PowerShares Dynamic Financial Sector Portfolio

April 30, 2011

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
		Reinsurance—4.0%
	8,313	Axis Capital Holdings Ltd. (Bermuda)	$	293,947
	5,063	Reinsurance Group of America, Inc.		320,488
	5,975	Transatlantic Holdings, Inc.		294,508
				908,943
		REITs - Diversified—1.5%
	4,946	Rayonier, Inc. REIT		328,217
		Super - Regional Banks - U.S.—2.3%
	20,071	U.S. Bancorp		518,233
		Total Common Stocks and Other Equity Interests (Cost $19,463,730)		22,495,960
		Money Market Fund—0.3%
	67,908	Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $67,908)		67,908
		Total Investments (Cost $19,531,638)—100.3%		22,563,868
		Liabilities in excess of other assets—(0.3%)		(71,394	)
		Net Assets—100.0%	$	22,492,474

Investment Abbreviations:

REIT—Real Estate Investment Trust

Notes to Schedule of Investments:

* Non-income producing security.

See Notes to Financial Statements.

Schedule of Investments

PowerShares Dynamic Healthcare Sector Portfolio

April 30, 2011

Number of Shares			Value
		Common Stocks—100.0%
		Biotechnology—8.2%
	26,966	Amgen, Inc.*	$	1,533,017
	20,793	Biogen Idec, Inc.*		2,024,199
	44,459	Medicines Co. (The)*		698,006
	41,619	Myriad Genetics, Inc.*		892,311
				5,147,533
		Commercial Services—5.3%
	11,786	Chemed Corp.		820,659
	15,561	CorVel Corp.*		806,060
	27,201	Pharmaceutical Product Development, Inc.		839,151
	42,493	Team Health Holdings, Inc.*		844,761
				3,310,631
		Distribution/Wholesale—1.4%
	24,732	Owens & Minor, Inc.		852,017
		Electronics—5.1%
	25,365	Thermo Fisher Scientific, Inc.*		1,521,646
	17,095	Waters Corp.*		1,675,310
				3,196,956
		Healthcare - Products—20.7%
	12,488	Cooper Cos., Inc. (The)		935,351
	23,260	Cyberonics, Inc.*		827,358
	11,073	Henry Schein, Inc.*		809,104
	20,188	Hill-Rom Holdings, Inc.		908,662
	37,388	Hologic, Inc.*		823,284
	9,900	IDEXX Laboratories, Inc.*		806,157
	39,179	Immucor, Inc.*		855,278
	15,527	Integra LifeSciences Holdings Corp.*		812,217
	16,239	Kinetic Concepts, Inc.*		958,588
	23,231	Patterson Cos., Inc.		806,348
	29,784	PSS World Medical, Inc.*		856,588
	15,283	Sirona Dental Systems, Inc.*		872,201
	22,349	Stryker Corp.		1,318,591
	20,526	Varian Medical Systems, Inc.*		1,440,925
				13,030,652
		Healthcare - Services—35.2%
	37,754	Aetna, Inc.		1,562,260
	13,438	Air Methods Corp.*		908,678
	13,277	AMERIGROUP Corp.*		906,819
	25,453	Centene Corp.*		922,162
	33,564	CIGNA Corp.		1,571,802
	19,242	Community Health Systems, Inc.*		591,307
	25,555	Coventry Health Care, Inc.*		824,660
	25,064	Ensign Group, Inc. (The)		693,270
	80,493	Health Management Associates, Inc., Class A*		907,961
	25,882	Health Net, Inc.*		861,871
	20,565	Healthspring, Inc.*		853,242
	22,513	Humana, Inc.*		1,713,690
	19,165	IPC The Hospitalist Co., Inc.*		993,897
	15,941	Magellan Health Services, Inc.*		829,251

Number of Shares			Value
		Common Stocks (Continued)
	21,870	Molina Healthcare, Inc.*	$	940,410
	24,869	Quest Diagnostics, Inc.		1,402,114
	57,110	Skilled Healthcare Group, Inc., Class A*		692,173
	74,851	Sunrise Senior Living, Inc.*		776,953
	33,144	UnitedHealth Group, Inc.		1,631,679
	17,000	Universal Health Services, Inc., Class B		931,260
	21,187	WellPoint, Inc.		1,626,950
				22,142,409
		Pharmaceuticals—21.6%
	37,692	AmerisourceBergen Corp.		1,531,803
	41,340	Eli Lilly & Co.		1,529,993
	22,411	Endo Pharmaceuticals Holdings, Inc.*		877,615
	25,425	Express Scripts, Inc.*		1,442,614
	44,206	Forest Laboratories, Inc.*		1,465,871
	36,904	Impax Laboratories, Inc.*		1,010,432
	31,401	Jazz Pharmaceuticals, Inc.*		1,002,006
	24,574	Par Pharmaceutical Cos., Inc.*		846,329
	10,131	Perrigo Co.		915,437
	60,961	Questcor Pharmaceuticals, Inc.*		1,249,700
	43,851	ViroPharma, Inc.*		845,886
	13,813	Watson Pharmaceuticals, Inc.*		856,682
				13,574,368
		Software—2.5%
	14,197	Computer Programs & Systems, Inc.		834,642
	29,703	Medidata Solutions, Inc.*		762,476
				1,597,118
		Total Common Stocks (Cost $50,770,644)		62,851,684
		Money Market Fund—0.2%
	94,927	Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $94,927)		94,927
		Total Investments (Cost $50,865,571)—100.2%		62,946,611
		Liabilities in excess of other assets—(0.2%)		(124,678	)
		Net Assets—100.0%	$	62,821,933

Notes to Schedule of Investments:

* Non-income producing security.

See Notes to Financial Statements.

Schedule of Investments

PowerShares Dynamic Industrials Sector Portfolio

April 30, 2011

Number of Shares			Value
		Common Stocks—100.0%
		Aerospace/Defense—12.2%
	28,830	Cubic Corp.	$	1,559,126
	39,858	Curtiss-Wright Corp.		1,325,278
	20,456	Esterline Technologies Corp.*		1,468,741
	35,277	General Dynamics Corp.		2,568,871
	33,426	Lockheed Martin Corp.		2,649,010
	32,064	Moog, Inc., Class A*		1,414,664
	32,132	United Technologies Corp.		2,878,385
				13,864,075
		Commercial Services—12.9%
	54,775	ABM Industries, Inc.		1,332,128
	57,701	Deluxe Corp.		1,562,543
	41,511	Equifax, Inc.		1,557,908
	193,259	Great Lakes Dredge & Dock Corp.		1,439,779
	65,836	ICF International, Inc.*		1,603,765
	69,070	Kelly Services, Inc., Class A*		1,319,928
	61,337	Macquarie Infrastructure Co. LLC*		1,539,559
	74,803	Rollins, Inc.		1,568,619
	82,435	Verisk Analytics, Inc., Class A*		2,712,111
				14,636,340
		Computers—1.4%
	79,752	Sykes Enterprises, Inc.*		1,597,432
		Electrical Components & Equipment—2.6%
	63,568	AMETEK, Inc.		2,926,671
		Electronics—1.4%
	26,479	Thomas & Betts Corp.*		1,534,988
		Engineering & Construction—5.3%
	87,747	Dycom Industries, Inc.*		1,303,920
	37,415	Exponent, Inc.*		1,605,478
	44,562	KBR, Inc.		1,709,844
	31,430	URS Corp.*		1,406,492
				6,025,734
		Hand/Machine Tools—2.8%
	34,180	Franklin Electric Co., Inc.		1,541,860
	20,729	Lincoln Electric Holdings, Inc.		1,628,885
				3,170,745
		Household Products/Wares—1.4%
	37,117	Avery Dennison Corp.		1,549,264
		Machinery - Construction & Mining—5.2%
	26,260	Caterpillar, Inc.		3,030,667
	28,512	Joy Global, Inc.		2,878,286
				5,908,953
		Machinery - Diversified—10.9%
	67,512	Altra Holdings, Inc.*		1,714,130
	45,024	Applied Industrial Technologies, Inc.		1,587,546
	30,886	Cascade Corp.		1,414,579
	32,373	Chart Industries, Inc.*		1,573,651

Number of Shares			Value
		Common Stocks (Continued)
	20,395	Gardner Denver, Inc.	$	1,762,332
	34,662	Robbins & Myers, Inc.		1,506,757
	48,867	Sauer-Danfoss, Inc.*		2,883,642
				12,442,637
		Miscellaneous Manufacturing—25.2%
	35,504	CLARCOR, Inc.		1,604,426
	66,233	Colfax Corp.*		1,447,191
	31,289	Crane Co.		1,561,634
	41,810	Dover Corp.		2,844,752
	50,090	Eaton Corp.		2,681,318
	128,647	General Electric Co.		2,630,831
	46,766	Honeywell International, Inc.		2,863,482
	46,220	ITT Corp.		2,671,054
	77,639	John Bean Technologies Corp.		1,569,084
	30,249	Parker Hannifin Corp.		2,853,086
	27,030	Raven Industries, Inc.		1,469,351
	67,641	Trimas Corp.*		1,569,947
	59,869	Tyco International Ltd. (Switzerland)		2,918,015
				28,684,171
		Office Furnishings—4.0%
	55,423	Herman Miller, Inc.		1,442,107
	71,021	Knoll, Inc.		1,394,142
	149,849	Steelcase, Inc., Class A		1,730,756
				4,567,005
		Semiconductors—1.3%
	133,545	GT Solar International, Inc.*		1,491,698
		Transportation—12.0%
	185,165	Air Transport Services Group, Inc.*		1,514,650
	21,426	Atlas Air Worldwide Holdings, Inc.*		1,476,466
	35,567	J.B. Hunt Transport Services, Inc.		1,695,834
	27,138	Kirby Corp.*		1,540,896
	47,319	Old Dominion Freight Line, Inc.*		1,770,677
	28,490	Union Pacific Corp.		2,947,860
	36,468	United Parcel Service, Inc., Class B		2,734,006
				13,680,389
		Trucking & Leasing—1.4%
	15,177	Amerco, Inc.*		1,543,804
		Total Common Stocks (Cost $103,391,073)		113,623,906

See Notes to Financial Statements.

Schedule of Investments (Continued)

PowerShares Dynamic Industrials Sector Portfolio

April 30, 2011

Number of Shares			Value
		Money Market Fund—0.1%
	96,537	Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $96,537)	$	96,537
		Total Investments (Cost $103,487,610)—100.1%		113,720,443
		Liabilities in excess of other assets—(0.1%)		(91,726	)
		Net Assets—100.0%	$	113,628,717

Notes to Schedule of Investments:

* Non-income producing security.

See Notes to Financial Statements.

Schedule of Investments

PowerShares Dynamic Technology Sector Portfolio

April 30, 2011

Number of Shares			Value
		Common Stocks—100.0%
		Commercial Services—15.8%
	24,965	Automatic Data Processing, Inc.	$	1,356,848
	31,160	ExlService Holdings, Inc.*		645,635
	17,919	Gartner, Inc.*		768,904
	20,046	Lender Processing Services, Inc.		589,954
	9,149	MAXIMUS, Inc.		731,829
	37,474	Paychex, Inc.		1,225,775
	29,616	TeleTech Holdings, Inc.*		588,470
	38,318	Total System Services, Inc.		722,294
	57,022	Western Union Co. (The)		1,211,717
				7,841,426
		Computers—21.6%
	3,557	Apple, Inc.*		1,238,654
	11,566	CACI International, Inc., Class A*		706,798
	68,376	Cadence Design Systems, Inc.*		709,743
	13,212	DST Systems, Inc.		651,484
	37,365	Insight Enterprises, Inc.*		641,184
	7,632	International Business Machines Corp.		1,301,867
	21,257	Jack Henry & Associates, Inc.		722,100
	105,555	Magma Design Automation, Inc.*		671,330
	14,258	MICROS Systems, Inc.*		741,701
	15,137	MTS Systems Corp.		670,115
	35,314	NCR Corp.*		699,570
	26,968	NetScout Systems, Inc.*		690,111
	32,093	Spansion, Inc., Class A*		632,232
	12,807	Syntel, Inc.		700,287
				10,777,176
		Distribution/Wholesale—2.4%
	53,915	Brightpoint, Inc.*		545,620
	33,811	Ingram Micro, Inc., Class A*		633,280
				1,178,900
		Electronics—15.4%
	29,238	Agilent Technologies, Inc.*		1,459,269
	42,621	AVX Corp.		695,148
	19,963	FEI Co.*		647,999
	21,969	Measurement Specialties, Inc.*		764,082
	23,704	Multi-Fineline Electronix, Inc.*		631,238
	41,369	Newport Corp.*		774,841
	34,702	TE Connectivity Ltd. (Switzerland)		1,244,067
	38,167	TTM Technologies, Inc.*		729,753
	37,931	Vishay Intertechnology, Inc.*		723,723
				7,670,120
		Internet—4.4%
	68,238	Symantec Corp.*		1,340,877
	27,484	TIBCO Software, Inc.*		824,245
				2,165,122
		Media—1.4%
	6,434	FactSet Research Systems, Inc.		703,944

Number of Shares			Value
		Common Stocks (Continued)
		Semiconductors—13.1%
	76,831	Applied Materials, Inc.	$	1,205,478
	25,296	KLA-Tencor Corp.		1,110,494
	22,376	Lam Research Corp.*		1,080,985
	105,226	LSI Corp.*		771,307
	16,763	Novellus Systems, Inc.*		538,092
	34,770	Texas Instruments, Inc.		1,235,378
	14,013	Varian Semiconductor Equipment Associates, Inc.*		587,565
				6,529,299
		Software—19.6%
	21,998	ACI Worldwide, Inc.*		726,814
	12,100	ANSYS, Inc.*		669,009
	25,312	BMC Software, Inc.*		1,271,422
	50,061	CA, Inc.		1,231,000
	19,659	Fiserv, Inc.*		1,205,293
	19,604	Interactive Intelligence, Inc.*		733,582
	46,648	Microsoft Corp.		1,213,781
	22,823	Progress Software Corp.*		676,702
	25,320	Quest Software, Inc.*		652,243
	13,026	Solera Holdings, Inc.		716,430
	20,058	Verint Systems, Inc.*		686,585
				9,782,861
		Telecommunications—6.3%
	17,488	Black Box Corp.		611,031
	13,966	InterDigital, Inc.		646,486
	8,538	Loral Space & Communications, Inc.*		596,806
	26,618	NeuStar, Inc., Class A*		715,758
	87,848	RF Micro Devices, Inc.*		585,068
				3,155,149
		Total Common Stocks (Cost $44,889,062)		49,803,997
		Money Market Fund—0.2%
	67,262	Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $67,262)		67,262
		Total Investments (Cost $44,956,324)—100.2%		49,871,259
		Liabilities in excess of other assets—(0.2%)		(77,860	)
		Net Assets—100.0%	$	49,793,399

Notes to Schedule of Investments:

* Non-income producing security.

See Notes to Financial Statements.

Schedule of Investments

PowerShares Dynamic Utilities Portfolio

April 30, 2011

Number of Shares			Value
		Common Stocks—100.0%
		Broadcast Services/Program—1.4%
	14,096	Liberty Global, Inc., Class A*	$	655,464
		Cable/Satellite TV—7.5%
	43,900	Comcast Corp., Class A		1,151,936
	24,088	DIRECTV, Class A*		1,170,436
	15,553	Time Warner Cable, Inc.		1,215,156
				3,537,528
		Cellular Telecommunications—6.9%
	42,710	MetroPCS Communications, Inc.*		718,809
	14,203	NII Holdings, Inc.*		590,561
	257,208	Sprint Nextel Corp.*		1,332,338
	12,143	United States Cellular Corp.*		597,921
				3,239,629
		Electric - Integrated—50.5%
	16,044	ALLETE, Inc.		649,622
	15,608	Alliant Energy Corp.		617,140
	21,898	Ameren Corp.		641,830
	31,429	American Electric Power Co., Inc.		1,146,530
	31,502	CMS Energy Corp.		623,740
	22,439	Consolidated Edison, Inc.		1,169,521
	24,642	Dominion Resources, Inc.		1,143,882
	23,267	DPL, Inc.		704,757
	12,827	DTE Energy Co.		648,148
	62,044	Duke Energy Corp.		1,157,121
	30,790	Edison International		1,209,123
	21,709	El Paso Electric Co.*		672,545
	27,964	Empire District Electric Co. (The)		627,512
	15,576	Entergy Corp.		1,085,959
	26,857	Exelon Corp.		1,132,023
	31,436	Great Plains Energy, Inc.		646,953
	25,078	Hawaiian Electric Industries, Inc.		639,238
	14,749	MGE Energy, Inc.		619,606
	17,935	Northeast Utilities		638,486
	20,554	NorthWestern Corp.		669,033
	41,192	NV Energy, Inc.		625,706
	32,698	Pepco Holdings, Inc.		630,090
	45,073	PNM Resources, Inc.		690,969
	26,190	Portland General Electric Co.		653,702
	34,079	Public Service Enterprise Group, Inc.		1,096,321
	29,133	Southern Co.		1,137,352
	16,782	Unisource Energy Corp.		623,116
	23,277	Westar Energy, Inc.		633,367
	20,494	Wisconsin Energy Corp.		639,618
	25,299	Xcel Energy, Inc.		615,525
				23,788,535
		Electric - Transmission—1.3%
	8,892	ITC Holdings Corp.		630,709

Number of Shares			Value
		Common Stocks (Continued)
		Electronic Measuring Instruments—1.2%
	12,336	Trimble Navigation Ltd.*	$	577,818
		Gas - Distribution—7.7%
	17,866	Atmos Energy Corp.		623,345
	15,540	Laclede Group, Inc. (The)		596,270
	20,753	Sempra Energy		1,143,490
	15,480	Southwest Gas Corp.		615,640
	22,966	Vectren Corp.		656,368
				3,635,113
		Independent Power Producer—1.3%
	154,126	GenOn Energy, Inc.*		605,715
		Internet Connectivity Services—1.3%
	9,057	AboveNet, Inc.		604,555
		Telecommunication Equipment—2.7%
	22,237	Comtech Telecommunications Corp.		629,307
	17,422	Plantronics, Inc.		645,833
				1,275,140
		Telecommunication Services—4.6%
	38,556	Global Crossing Ltd.*		901,439
	35,016	Neutral Tandem, Inc.*		535,395
	140,474	Vonage Holdings Corp.*		724,846
				2,161,680
		Telephone - Integrated—9.0%
	39,409	AT&T, Inc.		1,226,408
	50,429	General Communication, Inc., Class A*		579,934
	22,853	IDT Corp., Class B		662,508
	17,946	Telephone & Data Systems, Inc.		602,268
	30,822	Verizon Communications, Inc.		1,164,455
				4,235,573
		Water—1.4%
	22,018	American Water Works Co., Inc.		646,889
		Wireless Equipment—3.2%
	158,587	Powerwave Technologies, Inc.*		724,743
	56,111	TeleNav, Inc.*		761,987
				1,486,730
		Total Common Stocks (Cost $41,968,322)		47,081,078

See Notes to Financial Statements.

Schedule of Investments (Continued)

PowerShares Dynamic Utilities Portfolio

April 30, 2011

Number of Shares			Value
		Money Market Fund—0.0%
	28,793	Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $28,793)	$	28,793
		Total Investments (Cost $41,997,115)—100.0%		47,109,871
		Liabilities in excess of other assets—(0.0%)		(21,030	)
		Net Assets—100.0%	$	47,088,841

Notes to Schedule of Investments:

* Non-income producing security.

See Notes to Financial Statements.

Schedule of Investments

PowerShares NASDAQ Internet Portfolio

April 30, 2011

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Computer Services—0.3%
	11,873	LivePerson, Inc.*	$	158,623
		E-Commerce/Products—11.8%
	18,630	Amazon.com, Inc.*		3,660,795
	3,348	Blue Nile, Inc.*		190,836
	10,294	MercadoLibre, Inc. (Argentina)		940,872
	6,246	Nutrisystem, Inc.		93,940
	5,434	Overstock.com, Inc.*		75,533
	6,627	Shutterfly, Inc.*		407,958
	4,996	Vitacost.Com, Inc.*		7,119
				5,377,053
		E-Commerce/Services—27.9%
	10,378	Ancestry.com, Inc.*		474,275
	96,345	eBay, Inc.*		3,314,268
	57,980	Expedia, Inc.		1,451,239
	19,511	IAC/InterActiveCorp.*		704,542
	7,947	Makemytrip Ltd. (Mauritius)*		250,569
	7,808	Netflix, Inc.*		1,816,687
	5,369	OpenTable, Inc.*		597,516
	23,919	Orbitz Worldwide, Inc.*		76,541
	7,112	Priceline.com, Inc.*		3,890,335
	20,570	United Online, Inc.		135,762
				12,711,734
		E-Marketing/Information—2.9%
	7,317	comScore, Inc.*		218,120
	6,765	Constant Contact, Inc.*		187,458
	9,094	Digital River, Inc.*		295,919
	6,347	Liquidity Services, Inc.*		123,449
	10,886	QuinStreet, Inc.*		196,819
	18,885	ValueClick, Inc.*		316,323
				1,338,088
		Enterprise Software/Services—2.4%
	13,308	Open Text Corp. (Canada)*		814,450
	7,533	RightNow Technologies, Inc.*		272,544
				1,086,994
		E-Services/Consulting—1.5%
	15,639	GSI Commerce, Inc.*		457,753
	3,596	Keynote Systems, Inc.		76,739
	6,946	Perficient, Inc.*		86,756
	6,642	Saba Software, Inc.*		67,416
				688,664
		Human Resources—1.1%
	30,364	Monster Worldwide, Inc.*		498,273
		Internet Application Software—1.2%
	9,510	DealerTrack Holdings, Inc.*		213,595
	8,858	KIT Digital, Inc.*		101,955

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	31,708	RealNetworks, Inc.*	$	117,320
	4,560	Vocus, Inc.*		135,113
				567,983
		Internet Connectivity Services—0.6%
	10,714	Cogent Communications Group, Inc.*		155,460
	12,139	Internap Network Services Corp.*		98,204
				253,664
		Internet Content - Entertainment—0.4%
	25,725	Limelight Networks, Inc.*		163,868
		Internet Content - Information/Network—1.9%
	8,016	Knot, Inc. (The)*		81,844
	13,559	WebMD Health Corp.*		784,659
				866,503
		Internet Content - Information/News—1.6%
	15,163	Dice Holdings, Inc.*		277,938
	7,522	LoopNet, Inc.*		139,759
	3,829	Travelzoo, Inc.*		313,595
				731,292
		Internet Incubators—0.1%
	10,218	ModusLink Global Solutions, Inc.*		53,542
		Internet Infrastructure Software—3.4%
	42,989	Akamai Technologies, Inc.*		1,480,541
	11,019	Support.com, Inc.*		63,139
				1,543,680
		Internet Security—3.4%
	40,481	VeriSign, Inc.		1,496,178
	15,120	Zix Corp.*		49,896
				1,546,074
		Internet Telephony—0.7%
	10,692	j2 Global Communications, Inc.*		314,986
		Networking Products—0.5%
	5,573	LogMeIn, Inc.*		240,029
		Printing - Commercial—1.2%
	9,982	VistaPrint NV (Netherlands)*		543,021
		Retail - Pet Food & Supplies—0.2%
	5,263	PetMed Express, Inc.		79,419
		Telecommunication Services—2.0%
	56,866	Clearwire Corp., Class A*		276,369
	10,070	Motricity, Inc.*		134,535
	13,087	SAVVIS, Inc.*		515,104
				926,008

See Notes to Financial Statements.

Schedule of Investments (Continued)

PowerShares NASDAQ Internet Portfolio

April 30, 2011

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
		Web Hosting/Design—6.1%
	10,778	Equinix, Inc.*	$	1,084,914
	14,821	NIC, Inc.		190,524
	29,827	Rackspace Hosting, Inc.*		1,377,709
	6,389	Web.com Group, Inc.*		100,818
				2,753,965
		Web Portals/ISP—28.8%
	24,929	AOL, Inc.*		508,053
	26,645	Baidu, Inc. ADR (China)*		3,957,315
	25,206	EarthLink, Inc.		207,193
	5,263	Google, Inc., Class A*		2,863,598
	8,446	InfoSpace, Inc.*		76,014
	17,498	NetEase.com, Inc. ADR (China)*		862,302
	14,273	SINA Corp. (China)*		1,923,287
	8,909	Sohu.com, Inc.*		942,216
	98,376	Yahoo!, Inc.*		1,746,174
				13,086,152
		Total Investments (Cost $34,564,884)—100.0%		45,529,615
		Liabilities in excess of other assets—(0.0%)		(22,354	)
		Net Assets—100.0%	$	45,507,261

Investment Abbreviations:

ADR—American Depositary Receipt

Notes to Schedule of Investments:

* Non-income producing security.

This Fund has holdings greater than 10% of net assets in the following countries:

China

14.8

See Notes to Financial Statements.

Statements of Assets and Liabilities

April 30, 2011

	PowerShares Dynamic Basic Materials Sector Portfolio			PowerShares Dynamic Consumer Discretionary Sector Portfolio			PowerShares Dynamic Consumer Staples Sector Portfolio			PowerShares Dynamic Energy Sector Portfolio			PowerShares Dynamic Financial Sector Portfolio
ASSETS:
Investments, at value	$	97,723,264		$	20,714,786		$	40,815,089		$	191,947,656		$	22,563,868
Cash		307			237			256			359			679
Receivables:
Dividends		46,969			7,385			48,430			126,020			3,383
Expense waivers		5,099			11,108			9,117			6,432			9,854
Shares sold		—			—			—			2,201,002			—
Total Assets		97,775,639			20,733,516			40,872,892			194,281,469			22,577,784
LIABILITIES:
Due to custodian		—			—			—			—			—
Payables:
Investments purchased		55,323			—			—			2,197,080			—
Accrued advisory fees		38,436			5,830			16,291			75,010			9,102
Accrued expenses		90,680			70,915			84,831			106,534			76,208
Expense recapture		—			—			—			—			—
Total Liabilities		184,439			76,745			101,122			2,378,624			85,310
NET ASSETS	$	97,591,200		$	20,656,771		$	40,771,770		$	191,902,845		$	22,492,474
NET ASSETS CONSIST OF:
Shares of beneficial interest	$	88,196,956		$	23,768,869		$	41,397,343		$	169,158,816		$	28,444,319
Undistributed net investment income (loss)		47,423			28,766			99,930			331,180			1,914
Undistributed net realized gain (loss)		(11,289,691	)		(5,849,666	)		(8,749,765	)		(8,910,596	)		(8,985,989	)
Net unrealized appreciation		20,636,512			2,708,802			8,024,262			31,323,445			3,032,230
Net Assets	$	97,591,200		$	20,656,771		$	40,771,770		$	191,902,845		$	22,492,474
Shares outstanding (unlimited amount authorized, $0.01 par value)		2,400,000			750,000			1,300,000			4,300,000			1,100,000
Net asset value	$	40.66		$	27.54		$	31.36		$	44.63		$	20.45
Share price	$	40.67		$	27.53		$	31.37		$	44.65		$	20.44
Investments, at cost	$	77,086,752		$	18,005,984		$	32,790,827		$	160,624,211		$	19,531,638

See Notes to Financial Statements.

	PowerShares Dynamic Healthcare Sector Portfolio			PowerShares Dynamic Industrials Sector Portfolio			PowerShares Dynamic Technology Sector Portfolio			PowerShares Dynamic Utilities Portfolio			PowerShares NASDAQ Internet Portfolio
ASSETS:
Investments, at value	$	62,946,611		$	113,720,443		$	49,871,259		$	47,109,871		$	45,529,615
Cash		—			1,337			263			260			—
Receivables:
Dividends		1,317			53,591			16,143			73,276			1
Expense waivers		9,911			—			9,003			9,269			—
Shares sold		—			1,618,018			—			—			—
Total Assets		62,957,839			115,393,389			49,896,668			47,192,676			45,529,616
LIABILITIES:
Due to custodian		6,878			—			—			—			1,006
Payables:
Investments purchased		—			1,617,389			—			—			—
Accrued advisory fees		23,761			41,114			20,205			18,691			21,349
Accrued expenses		105,267			104,896			83,064			85,144			—
Expense recapture		—			1,273			—			—			—
Total Liabilities		135,906			1,764,672			103,269			103,835			22,355
NET ASSETS	$	62,821,933		$	113,628,717		$	49,793,399		$	47,088,841		$	45,507,261
NET ASSETS CONSIST OF:
Shares of beneficial interest	$	92,753,512		$	135,416,813		$	66,736,583		$	53,793,290		$	35,142,878
Undistributed net investment income (loss)		(6,329	)		32,419			(4,774	)		113,908			—
Undistributed net realized gain (loss)		(42,006,290	)		(32,053,348	)		(21,853,345	)		(11,931,113	)		(600,348	)
Net unrealized appreciation		12,081,040			10,232,833			4,914,935			5,112,756			10,964,731
Net Assets	$	62,821,933		$	113,628,717		$	49,793,399		$	47,088,841		$	45,507,261
Shares outstanding (unlimited amount authorized, $0.01 par value)		2,000,000			3,500,000			1,800,000			2,750,000			1,100,000
Net asset value	$	31.41		$	32.47		$	27.66		$	17.12		$	41.37
Share price	$	31.44		$	32.48		$	27.65		$	17.13		$	41.40
Investments, at cost	$	50,865,571		$	103,487,610		$	44,956,324		$	41,997,115		$	34,564,884

Statements of Operations

Year Ended April 30, 2011

	PowerShares Dynamic Basic Materials Sector Portfolio			PowerShares Dynamic Consumer Discretionary Sector Portfolio			PowerShares Dynamic Consumer Staples Sector Portfolio			PowerShares Dynamic Energy Sector Portfolio			PowerShares Dynamic Financial Sector Portfolio
INVESTMENT INCOME:
Dividend income	$	2,032,448		$	297,477		$	977,802		$	1,292,050		$	392,827
EXPENSES:
Advisory fees		316,209			98,746			190,981			413,837			91,322
Accounting & Administration fees		68,240			68,240			68,240			68,240			68,240
Professional fees		33,199			31,318			32,388			32,894			31,069
Sub-licensing		31,621			9,875			19,098			41,385			9,132
Custodian & transfer agent fees		21,003			14,146			18,625			21,095			15,014
Printing		12,352			5,330			9,973			11,025			5,305
Recapture (See Note 3)		2,259			—			—			1,381			—
Other expenses		18,626			17,779			18,880			24,894			17,875
Total Expenses		503,509			245,434			358,185			614,751			237,957
Less Waivers		(92,440	)		(117,064	)		(109,908	)		(75,608	)		(119,238	)
Net Expenses		411,069			128,370			248,277			539,143			118,719
Net Investment Income (Loss)		1,621,379			169,107			729,525			752,907			274,108
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) from:
Investments		(2,014,729	)		(2,128,362	)		(1,560,798	)		(647,147	)		(1,011,937	)
In-kind redemptions		9,380,971			4,941,163			3,730,349			15,156,967			2,666,718
Net realized gain		7,366,242			2,812,801			2,169,551			14,509,820			1,654,781
Net change in unrealized appreciation (depreciation) on investments		12,431,129			(540,674	)		3,967,366			25,446,375			559,754
Net realized and unrealized gain		19,797,371			2,272,127			6,136,917			39,956,195			2,214,535
Net increase in net assets resulting from operations	$	21,418,750		$	2,441,234		$	6,866,442		$	40,709,102		$	2,488,643

See Notes to Financial Statements.

	PowerShares Dynamic Healthcare Sector Portfolio			PowerShares Dynamic Industrials Sector Portfolio			PowerShares Dynamic Technology Sector Portfolio			PowerShares Dynamic Utilities Portfolio			PowerShares NASDAQ Internet Portfolio
INVESTMENT INCOME:
Dividend income	$	269,416		$	597,342		$	229,094		$	1,531,324		$	112,470
EXPENSES:
Advisory fees		305,534			235,184			197,108			204,304			155,463
Accounting & Administration fees		68,240			68,240			68,240			68,240			—
Professional fees		36,811			31,878			32,315			33,836			—
Sub-licensing		30,554			23,519			19,711			12,258			—
Custodian & transfer agent fees		13,949			15,756			13,218			17,008			—
Printing		33,640			13,809			9,377			9,754			—
Recapture (See Note 3)		—			3,022			—			583			—
Other expenses		20,997			20,515			19,098			18,670			—
Total Expenses		509,725			411,923			359,067			364,653			155,463
Less Waivers		(112,530	)		(106,180	)		(102,829	)		(107,230	)		—
Net Expenses		397,195			305,743			256,238			257,423			155,463
Net Investment Income (Loss)		(127,779	)		291,599			(27,144	)		1,273,901			(42,993	)
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) from:
Investments		(2,942,265	)		(1,374,107	)		(3,501,656	)		(1,761,112	)		(314,269	)
In-kind redemptions		15,230,758			8,664,890			9,675,326			4,224,257			2,794,457
Net realized gain		12,288,493			7,290,783			6,173,670			2,463,145			2,480,188
Net change in unrealized appreciation (depreciation) on investments		(5,044,165	)		5,470,306			195,839			3,577,891			8,511,422
Net realized and unrealized gain		7,244,328			12,761,089			6,369,509			6,041,036			10,991,610
Net increase in net assets resulting from operations	$	7,116,549		$	13,052,688		$	6,342,365		$	7,314,937		$	10,948,617

Statements of Changes in Net Assets

	PowerShares Dynamic Basic Materials Sector Portfolio						PowerShares Dynamic Consumer Discretionary Sector Portfolio						PowerShares Dynamic Consumer Staples Sector Portfolio
	Year Ended April 30, 2011			Year Ended April 30, 2010			Year Ended April 30, 2011			Year Ended April 30, 2010			Year Ended April 30, 2011			Year Ended April 30, 2010
OPERATIONS:
Net investment income (loss)	$	1,621,379		$	359,169		$	169,107		$	46,955		$	729,525		$	592,710
Net realized gain (loss)		7,366,242			2,550,246			2,812,801			3,529,408			2,169,551			4,338,153
Net change in unrealized appreciation (depreciation)		12,431,129			11,196,576			(540,674	)		1,633,591			3,967,366			5,799,571
Net increase in net assets resulting from operations		21,418,750			14,105,991			2,441,234			5,209,954			6,866,442			10,730,434
Undistributed net investment income (loss) included in the price of units issued and redeemed		469,589			46,497			14,507			(12,574	)		(46,060	)		(93,966	)
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income		(1,632,096	)		(372,907	)		(142,120	)		(42,516	)		(712,831	)		(710,824	)
Return of capital		—			—			—			—			—			—
Total distributions to shareholders		(1,632,096	)		(372,907	)		(142,120	)		(42,516	)		(712,831	)		(710,824	)
SHAREHOLDER TRANSACTIONS:
Proceeds from shares sold		67,091,633			32,708,442			30,811,179			21,715,269			16,225,994			21,673,659
Value of shares repurchased		(37,804,118	)		(16,053,293	)		(33,798,514	)		(19,195,521	)		(20,379,736	)		(30,374,655	)
Net income equalization		(469,589	)		(46,497	)		(14,507	)		12,574			46,060			93,966
Net increase (decrease) in net assets resulting from shares transactions		28,817,926			16,608,652			(3,001,842	)		2,532,322			(4,107,682	)		(8,607,030	)
Increase (Decrease) in Net Assets		49,074,169			30,388,233			(688,221	)		7,687,186			1,999,869			1,318,614
NET ASSETS:
Beginning of year		48,517,031			18,128,798			21,344,992			13,657,806			38,771,901			37,453,287
End of year	$	97,591,200		$	48,517,031		$	20,656,771		$	21,344,992		$	40,771,770		$	38,771,901
Undistributed net investment income (loss) at end of year	$	47,423		$	58,140		$	28,766		$	1,779		$	99,930		$	83,236
CHANGES IN SHARES OUTSTANDING:
Shares sold		1,950,000			1,250,000			1,300,000			1,100,000			600,000			900,000
Shares repurchased		(1,100,000	)		(600,000	)		(1,450,000	)		(1,000,000	)		(750,000	)		(1,250,000	)
Shares outstanding, beginning of year		1,550,000			900,000			900,000			800,000			1,450,000			1,800,000
Shares outstanding, end of year		2,400,000			1,550,000			750,000			900,000			1,300,000			1,450,000

See Notes to Financial Statements.

	PowerShares Dynamic Energy Sector Portfolio						PowerShares Dynamic Financial Sector Portfolio						PowerShares Dynamic Healthcare Sector Portfolio
	Year Ended April 30, 2011			Year Ended April 30, 2010			Year Ended April 30, 2011			Year Ended April 30, 2010			Year Ended April 30, 2011			Year Ended April 30, 2010
OPERATIONS:
Net investment income (loss)	$	752,907		$	259,521		$	274,108		$	217,441		$	(127,779	)	$	116,302
Net realized gain (loss)		14,509,820			7,032,754			1,654,781			(748,544	)		12,288,493			7,751,096
Net change in unrealized appreciation (depreciation)		25,446,375			5,612,261			559,754			4,491,634			(5,044,165	)		23,695,539
Net increase in net assets resulting from operations		40,709,102			12,904,536			2,488,643			3,960,531			7,116,549			31,562,937
Undistributed net investment income (loss) included in the price of units issued and redeemed		248,162			(53	)		304			(1,004	)		132,547			3,968
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income		(444,392	)		(298,571	)		(315,046	)		(228,052	)		—			(214,570	)
Return of capital		—			—			—			—			—			(116,320	)
Total distributions to shareholders		(444,392	)		(298,571	)		(315,046	)		(228,052	)		—			(330,890	)
SHAREHOLDER TRANSACTIONS:
Proceeds from shares sold		183,166,148			39,626,811			21,741,962			13,906,402			62,165,104			74,249,218
Value of shares repurchased		(70,198,961	)		(39,439,871	)		(18,962,403	)		(14,729,644	)		(104,057,484	)		(79,459,523	)
Net income equalization		(248,162	)		53			(304	)		1,004			(132,547	)		(3,968	)
Net increase (decrease) in net assets resulting from shares transactions		112,719,025			186,993			2,779,255			(822,238	)		(42,024,927	)		(5,214,273	)
Increase (Decrease) in Net Assets		153,231,897			12,792,905			4,953,156			2,909,237			(34,775,831	)		26,021,742
NET ASSETS:
Beginning of year		38,670,948			25,878,043			17,539,318			14,630,081			97,597,764			71,576,022
End of year	$	191,902,845		$	38,670,948		$	22,492,474		$	17,539,318		$	62,821,933		$	97,597,764
Undistributed net investment income (loss) at end of year	$	331,180		$	7,289		$	1,914		$	46,098		$	(6,329	)	$	(4,622	)
CHANGES IN SHARES OUTSTANDING:
Shares sold		5,000,000			1,550,000			1,200,000			850,000			2,400,000			3,450,000
Shares repurchased		(2,000,000	)		(1,550,000	)		(1,050,000	)		(900,000	)		(4,200,000	)		(3,650,000	)
Shares outstanding, beginning of year		1,300,000			1,300,000			950,000			1,000,000			3,800,000			4,000,000
Shares outstanding, end of year		4,300,000			1,300,000			1,100,000			950,000			2,000,000			3,800,000

Statements of Changes in Net Assets (Continued)

	PowerShares Dynamic Industrials Sector Portfolio						PowerShares Dynamic Technology Sector Portfolio
	Year Ended April 30, 2011			Year Ended April 30, 2010			Year Ended April 30, 2011			Year Ended April 30, 2010
OPERATIONS:
Net investment income (loss)	$	291,599		$	481,148		$	(27,144	)	$	(84,100	)
Net realized gain (loss)		7,290,783			14,758,510			6,173,670			9,939,668
Net change in unrealized appreciation (depreciation)		5,470,306			3,451,740			195,839			974,199
Net increase in net assets resulting from operations		13,052,688			18,691,398			6,342,365			10,829,767
Undistributed net investment income (loss) included in the price of units issued and redeemed		(15,439	)		(152,197	)		(9,019	)		(10,830	)
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income		(298,462	)		(585,231	)		—			—
Return of capital		—			—			(20,352	)		—
Total distributions to shareholders		(298,462	)		(585,231	)		(20,352	)		—
SHAREHOLDER TRANSACTIONS:
Proceeds from shares sold		126,307,101			102,731,657			55,920,728			46,780,788
Value of shares repurchased		(58,211,661	)		(148,383,157	)		(51,391,309	)		(44,600,368	)
Net income equalization		15,439			152,197			9,019			10,830
Net increase (decrease) in net assets resulting from shares transactions		68,110,879			(45,499,303	)		4,538,438			2,191,250
Increase (Decrease) in Net Assets		80,849,666			(27,545,333	)		10,851,432			13,010,187
NET ASSETS:
Beginning of year		32,779,051			60,324,384			38,941,967			25,931,780
End of year	$	113,628,717		$	32,779,051		$	49,793,399		$	38,941,967
Undistributed net investment income (loss) at end of year	$	32,419		$	38,292		$	(4,774	)	$	(3,327	)
CHANGES IN SHARES OUTSTANDING:
Shares sold		4,350,000			5,100,000			2,250,000			2,350,000
Shares repurchased		(2,150,000	)		(7,000,000	)		(2,100,000	)		(2,200,000	)
Shares outstanding, beginning of year		1,300,000			3,200,000			1,650,000			1,500,000
Shares outstanding, end of year		3,500,000			1,300,000			1,800,000			1,650,000

See Notes to Financial Statements.

	PowerShares Dynamic Utilities Portfolio						PowerShares NASDAQ Internet Portfolio
	Year Ended April 30, 2011			Year Ended April 30, 2010			Year Ended April 30, 2011			Year Ended April 30, 2010
OPERATIONS:
Net investment income (loss)	$	1,273,901		$	1,150,440		$	(42,993	)	$	(44,029	)
Net realized gain (loss)		2,463,145			(2,050,432	)		2,480,188			509,051
Net change in unrealized appreciation (depreciation)		3,577,891			6,159,493			8,511,422			2,973,941
Net increase in net assets resulting from operations		7,314,937			5,259,501			10,948,617			3,438,963
Undistributed net investment income (loss) included in the price of units issued and redeemed		(14,215	)		(377,901	)		(78,012	)		(50,661	)
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income		(1,369,784	)		(1,469,967	)		—			—
Return of capital		—			—			—			—
Total distributions to shareholders		(1,369,784	)		(1,469,967	)		—			—
SHAREHOLDER TRANSACTIONS:
Proceeds from shares sold		44,856,390			35,752,793			30,134,937			13,980,103
Value of shares repurchased		(41,851,478	)		(43,474,177	)		(10,972,049	)		(3,811,934	)
Net income equalization		14,215			377,901			78,012			50,661
Net increase (decrease) in net assets resulting from shares transactions		3,019,127			(7,343,483	)		19,240,900			10,218,830
Increase (Decrease) in Net Assets		8,950,065			(3,931,850	)		30,111,505			13,607,132
NET ASSETS:
Beginning of year		38,138,776			42,070,626			15,395,756			1,788,624
End of year	$	47,088,841		$	38,138,776		$	45,507,261		$	15,395,756
Undistributed net investment income (loss) at end of year	$	113,908		$	209,791		$	—		$	—
CHANGES IN SHARES OUTSTANDING:
Shares sold		2,950,000			2,500,000			900,000			600,000
Shares repurchased		(2,750,000	)		(3,150,000	)		(350,000	)		(150,000	)
Shares outstanding, beginning of year		2,550,000			3,200,000			550,000			100,000
Shares outstanding, end of year		2,750,000			2,550,000			1,100,000			550,000

Financial Highlights

PowerShares Dynamic Basic Materials Sector Portfolio

	Year Ended April 30,												For the Period October 12, 2006* Through
	2011			2010			2009			2008			April 30, 2007
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	31.30		$	20.14		$	36.29		$	31.65		$	25.56
Net investment income**		0.86	†††		0.28			0.42			0.33			0.24
Net realized and unrealized gain (loss) on investments		9.34			11.20			(16.15	)		4.55			6.05
Total from investment operations		10.20			11.48			(15.73	)		4.88			6.29
Distributions to shareholders from:
Net investment income		(0.84	)		(0.32	)		(0.42	)		(0.24	)		(0.20	)
Net asset value at end of period	$	40.66		$	31.30		$	20.14		$	36.29		$	31.65
Share price at end of period***	$	40.67		$	31.34		$	20.15
NET ASSET VALUE, TOTAL RETURN****		33.12	%		57.46	%		(43.63	)%		15.47	%		24.69	%
SHARE PRICE TOTAL RETURN****		32.98	%		57.59	%		(43.59	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	97,591		$	48,517		$	18,129		$	43,550		$	18,988
Ratio to average net assets of:
Expenses, after (Waivers) and/or Recapture		0.65	%		0.65	%		0.65	%		0.68	%		0.71	%†
Expenses, prior to (Waivers) and/or Recapture		0.79	%		0.91	%		0.97	%		0.96	%		1.32	%†
Net investment income, after (Waivers) and/or Recapture		2.56	%†††		1.05	%		1.57	%		0.95	%		1.52	%†
Portfolio turnover rate ††		28	%		46	%		47	%		28	%		9	%
Undistributed net investment income (loss) included in price of units issued and redeemed**#	$	0.25		$	0.04		$	(0.01	)	$	0.03		$	0.02

PowerShares Dynamic Consumer Discretionary Sector Portfolio

	Year Ended April 30,												For the Period October 12, 2006* Through
	2011			2010			2009			2008			April 30, 2007
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	23.72		$	17.07		$	22.45		$	28.59		$	25.43
Net investment income**		0.20			0.06			0.13			0.10			0.09
Net realized and unrealized gain (loss) on investments		3.79			6.65			(5.35	)		(6.11	)		3.23
Total from investment operations		3.99			6.71			(5.22	)		(6.01	)		3.32
Distributions to shareholders from:
Net investment income		(0.17	)		(0.06	)		(0.15	)		(0.11	)		(0.16	)
Return of capital		—			—			(0.01	)		(0.02	)		—
Total distributions		(0.17	)		(0.06	)		(0.16	)		(0.13	)		(0.16	)
Net asset value at end of period	$	27.54		$	23.72		$	17.07		$	22.45		$	28.59
Share price at end of period***	$	27.53		$	23.74		$	17.07
NET ASSET VALUE, TOTAL RETURN****		16.91	%		39.37	%		(23.19	)%		(21.10	)%		13.11	%
SHARE PRICE TOTAL RETURN****		16.77	%		39.49	%		(23.22	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	20,657		$	21,345		$	13,658		$	11,227		$	17,156
Ratio to average net assets of:
Expenses, after (Waivers) and/or Recapture		0.65	%		0.65	%		0.64	%		0.70	%		0.72	%†
Expenses, prior to (Waivers) and/or Recapture		1.24	%		1.32	%		1.68	%		1.31	%		1.41	%†
Net investment income, after (Waivers) and/or Recapture		0.86	%		0.31	%		0.81	%		0.36	%		0.65	%†
Portfolio turnover rate ††		68	%		86	%		157	%		95	%		20	%
Undistributed net investment income (loss) included in price of units issued and redeemed**#	$	0.02		$	(0.02	)	$	(0.09	)	$	0.02		$	(0.11	)

* 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.

††† Net investment income per share and the ratio of net investment income to average net assets include a special cash dividend received of $1.65 per share owned of Weyerhaeuser Co. on July 20, 2010. Net investment income per share and the ratio of net investment income to average net assets excluding the special dividend are $0.26 and 0.78%, respectively.

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

See Notes to Financial Statements.

Financial Highlights (Continued)

PowerShares Dynamic Consumer Staples Sector Portfolio

	Year Ended April 30,												For the Period October 12, 2006* Through
	2011			2010			2009			2008			April 30, 2007
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	26.74		$	20.81		$	26.75		$	28.16		$	25.25
Net investment income**		0.52			0.36			0.45			0.34			0.49
Net realized and unrealized gain (loss) on investments		4.61			5.99			(6.04	)		(1.43	)		2.69
Total from investment operations		5.13			6.35			(5.59	)		(1.09	)		3.18
Distributions to shareholders from:
Net investment income		(0.51	)		(0.42	)		(0.35	)		(0.32	)		(0.27	)
Net asset value at end of period	$	31.36		$	26.74		$	20.81		$	26.75		$	28.16
Share price at end of period***	$	31.37		$	26.74		$	20.79
NET ASSET VALUE, TOTAL RETURN****		19.46	%		30.87	%		(21.02	)%		(3.94	)%		12.69	%
SHARE PRICE TOTAL RETURN****		19.50	%		30.99	%		(21.09	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	40,772		$	38,772		$	37,453		$	24,072		$	11,264
Ratio to average net assets of:
Expenses, after (Waivers) and/or Recapture		0.65	%		0.65	%		0.65	%		0.69	%		0.73	%†
Expenses, prior to (Waivers) and/or Recapture		0.94	%		0.87	%		0.94	%		1.18	%		1.46	%†
Net investment income, after (Waivers) and/or Recapture		1.91	%		1.50	%		2.07	%		1.22	%		3.42	%†
Portfolio turnover rate ††		54	%		67	%		48	%		44	%		18	%
Undistributed net investment income (loss) included in price of units issued and redeemed**#	$	(0.03	)	$	(0.06	)	$	0.15		$	0.22		$	0.04

PowerShares Dynamic Energy Sector Portfolio

	Year Ended April 30,												For the Period October 12, 2006* Through
	2011			2010			2009			2008			April 30, 2007
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	29.75		$	19.91		$	38.80		$	31.90		$	25.80
Net investment income**		0.32			0.20			0.18			0.14			0.05
Net realized and unrealized gain (loss) on investments		14.77			9.87			(18.93	)		6.84			6.08
Total from investment operations		15.09			10.07			(18.75	)		6.98			6.13
Distributions to shareholders from:
Net investment income		(0.21	)		(0.23	)		(0.14	)		(0.08	)		(0.03	)
Net asset value at end of period	$	44.63		$	29.75		$	19.91		$	38.80		$	31.90
Share price at end of period***	$	44.65		$	29.75		$	19.92
NET ASSET VALUE, TOTAL RETURN****		51.01	%		50.81	%		(48.52	)%		21.93	%		23.78	%
SHARE PRICE TOTAL RETURN****		51.07	%		50.73	%		(48.44	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	191,903		$	38,671		$	25,878		$	42,675		$	19,137
Ratio to average net assets of:
Expenses, after (Waivers) and/or Recapture		0.65	%		0.65	%		0.65	%		0.68	%		0.71	%†
Expenses, prior to (Waivers) and/or Recapture		0.74	%		0.93	%		0.98	%		0.96	%		1.22	%†
Net investment income, after (Waivers) and/or Recapture		0.90	%		0.79	%		0.65	%		0.41	%		0.28	%†
Portfolio turnover rate ††		35	%		63	%		67	%		50	%		12	%
Undistributed net investment income included in price of units issued and redeemed**#	$	0.11		$	0.00	^(a)	$	0.03		$	0.02		$	—

* 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.

Financial Highlights (Continued)

PowerShares Dynamic Financial Sector Portfolio

	Year Ended April 30,												For the Period October 12, 2006* Through
	2011			2010			2009			2008			April 30, 2007
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	18.46		$	14.63		$	22.94		$	26.51		$	25.16
Net investment income**		0.27			0.21			0.24			0.25			0.13
Net realized and unrealized gain (loss) on investments		2.04			3.84			(8.33	)		(3.59	)		1.31
Total from investment operations		2.31			4.05			(8.09	)		(3.34	)		1.44
Distributions to shareholders from:
Net investment income		(0.32	)		(0.22	)		(0.22	)		(0.23	)		(0.09	)
Net asset value at end of period	$	20.45		$	18.46		$	14.63		$	22.94		$	26.51
Share price at end of period***	$	20.44		$	18.45		$	14.60
NET ASSET VALUE, TOTAL RETURN****		12.76	%		27.90	%		(35.53	)%		(12.69	)%		5.72	%
SHARE PRICE TOTAL RETURN****		12.77	%		28.09	%		(35.66	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	22,492		$	17,539		$	14,630		$	22,943		$	7,954
Ratio to average net assets of:
Expenses, after (Waivers) and/or Recapture r		0.65	%		0.65	%		0.65	%		0.72	%		0.72	%†
Expenses, prior to (Waivers) and/or Recapture		1.30	%		1.25	%		1.13	%		1.42	%		1.38	%†
Net investment income, after (Waivers) and/or Recapture		1.50	%		1.26	%		1.27	%		1.07	%		0.87	%†
Portfolio turnover rate ††		59	%		97	%		66	%		50	%		33	%
Undistributed net investment income (loss) included in price of units issued and redeemed**#	$	0.00	^(a)	$	0.00	^(a)	$	0.00	^(a)	$	0.05		$	(0.02	)

PowerShares Dynamic Healthcare Sector Portfolio

	Year Ended April 30,												For the Period October 12, 2006* Through
	2011			2010			2009			2008			April 30, 2007
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	25.68		$	17.89		$	25.87		$	28.59		$	25.01
Net investment income (loss)**		(0.05	)		0.03			0.02			(0.05	)		(0.04	)
Net realized and unrealized gain (loss) on investments		5.78			7.84			(8.00	)		(2.67	)		3.62
Total from investment operations		5.73			7.87			(7.98	)		(2.72	)		3.58
Distributions to shareholders from:
Net investment income		—			(0.05	)		—			—			—
Return of capital		—			(0.03	)		—			—			—
Total distributions		—			(0.08	)		—			—			—
Net asset value at end of period	$	31.41		$	25.68		$	17.89		$	25.87		$	28.59
Share price at end of period***	$	31.44		$	25.67		$	17.86
NET ASSET VALUE, TOTAL RETURN****		22.31	%		44.09	%		(30.85	)%		(9.51	)%		14.31	%
SHARE PRICE TOTAL RETURN****		22.48	%		44.28	%		(30.94	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	62,822		$	97,598		$	71,576		$	119,019		$	57,183
Ratio to average net assets of:
Expenses, after (Waivers) and/or Recapture		0.65	%		0.65	%		0.65	%		0.66	%		0.71	%†
Expenses, prior to (Waivers) and/or Recapture		0.84	%		0.72	%		0.71	%		0.72	%		1.20	%†
Net investment income (loss), after (Waivers) and/or Recapture		(0.21	)%		0.13	%		0.10	%		(0.17	)%		(0.31	)%†
Portfolio turnover rate ††		63	%		79	%		96	%		75	%		14	%
Undistributed net investment income (loss) included in price of units issued and redeemed**#	$	0.06		$	0.00	^(a)	$	0.01		$	(0.04	)	$	(0.05	)

* 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.

r In addition to the fees and expenses which the Fund bears directly; the Fund indirectly bears a pro rata share of the fees and expenses of the investment companies in which the Fund invests. Estimated investment companies expenses are not expenses that are incurred directly by your Fund. They are expenses that are incurred directly by the investment companies and are deducted from the value of the funds your Fund invests in. The effect of the estimated investment companies expenses that you bear indirectly is included in your Fund's total return.

See Notes to Financial Statements.

Financial Highlights (Continued)

PowerShares Dynamic Industrials Sector Portfolio

	Year Ended April 30,												For the Period October 12, 2006* Through
	2011			2010			2009			2008			April 30, 2007
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	25.21		$	18.85		$	30.33		$	29.34		$	25.72
Net investment income**		0.17			0.20			0.22			0.14			0.04
Net realized and unrealized gain (loss) on investments		7.29			6.48			(11.55	)		1.00			3.63
Total from investment operations		7.46			6.68			(11.33	)		1.14			3.67
Distributions to shareholders from:
Net investment income		(0.20	)		(0.32	)		(0.15	)		(0.15	)		(0.04	)
Return of capital		—			—			—			—			(0.01	)
Total distributions		(0.20	)		(0.32	)		(0.15	)		(0.15	)		(0.05	)
Net asset value at end of period	$	32.47		$	25.21		$	18.85		$	30.33		$	29.34
Share price at end of period***	$	32.48		$	25.20		$	18.82
NET ASSET VALUE, TOTAL RETURN****		29.83	%		35.73	%		(37.41	)%		3.90	%		14.28	%
SHARE PRICE TOTAL RETURN****		29.92	%		35.89	%		(37.51	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	113,629		$	32,779		$	60,324		$	36,397		$	26,409
Ratio to average net assets of:
Expenses, after (Waivers) and/or Recapture		0.65	%		0.65	%		0.65	%		0.68	%		0.71	%†
Expenses, prior to (Waivers) and/or Recapture		0.88	%		0.82	%		0.81	%		0.90	%		1.19	%†
Net investment income, after (Waivers) and/or Recapture		0.62	%		0.93	%		1.05	%		0.45	%		0.30	%†
Portfolio turnover rate ††		48	%		121	%		81	%		84	%		14	%
Undistributed net investment income (loss) included in price of units issued and redeemed**#	$	(0.01	)	$	(0.06	)	$	0.03		$	0.00	^(a)	$	0.01

PowerShares Dynamic Technology Sector Portfolio

	Year Ended April 30,												For the Period October 12, 2006* Through
	2011			2010			2009			2008			April 30, 2007
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	23.60		$	17.29		$	24.83		$	27.76		$	25.54
Net investment income (loss)**		(0.02	)		(0.05	)		(0.01	)		(0.09	)		(0.07	)
Net realized and unrealized gain (loss) on investments		4.09			6.36			(7.53	)		(2.84	)		2.29
Total from investment operations		4.07			6.31			(7.54	)		(2.93	)		2.22
Distributions to shareholders from:
Return of capital		(0.01	)		—			—			—			—
Net asset value at end of period	$	27.66		$	23.60		$	17.29		$	24.83		$	27.76
Share price at end of period***	$	27.65		$	23.59		$	17.29
NET ASSET VALUE, TOTAL RETURN****		17.26	%		36.50	%		(30.37	)%		(10.55	)%		8.69	%
SHARE PRICE TOTAL RETURN****		17.27	%		36.44	%		(30.31	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	49,793		$	38,942		$	25,932		$	37,246		$	22,210
Ratio to average net assets of:
Expenses, after (Waivers) and/or Recapture		0.65	%		0.65	%		0.65	%		0.68	%		0.71	%†
Expenses, prior to (Waivers) and/or Recapture		0.91	%		0.90	%		0.89	%		0.94	%		1.25	%†
Net investment income (loss), after (Waivers) and/or Recapture		(0.07	)%		(0.24	)%		(0.04	)%		(0.36	)%		(0.49	)%†
Portfolio turnover rate ††		67	%		71	%		90	%		77	%		27	%
Undistributed net investment income (loss) included in price of units issued and redeemed**#	$	(0.01	)	$	(0.01	)	$	(0.02	)	$	(0.05	)	$	(0.02	)

* Commencement of Investment Operations.

** Based on average shares outstanding.

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

† 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.

Financial Highlights (Continued)

PowerShares Dynamic Utilities Portfolio

	Year Ended April 30,
	2011			2010			2009			2008			2007
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of year	$	14.96		$	13.15		$	19.01		$	20.54		$	16.33
Net investment income**		0.48			0.52			0.54			0.45			0.44
Net realized and unrealized gain (loss) on investments		2.19			2.04			(5.95	)		(1.53	)		4.16
Total from investment operations		2.67			2.56			(5.41	)		(1.08	)		4.60
Distributions to shareholders from:
Net investment income		(0.51	)		(0.75	)		(0.45	)		(0.45	)		(0.39	)
Net asset value at end of year	$	17.12		$	14.96		$	13.15		$	19.01		$	20.54
Share price at end of year***	$	17.13		$	14.96		$	13.13
NET ASSET VALUE, TOTAL RETURN****		18.36	%		19.79	%		(29.00	)%		(5.34	)%		28.48	%
SHARE PRICE TOTAL RETURN****		18.42	%		19.97	%		(29.11	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of year (000's omitted)	$	47,089		$	38,139		$	42,071		$	39,929		$	59,579
Ratio to average net assets of:
Expenses, after (Waivers) and/or Recapture		0.63	%		0.63	%		0.63	%		0.63	%		0.63	%
Expenses, prior to (Waivers) and/or Recapture		0.89	%		0.95	%		0.82	%		0.86	%		0.92	%
Net investment income, after (Waivers) and/or Recapture		3.12	%		3.71	%		3.44	%		2.32	%		2.34	%
Portfolio turnover rate ††		68	%		81	%		68	%		64	%		39	%
Undistributed net investment income (loss) included in price of units issued and redeemed***#	$	(0.01	)	$	(0.17	)	$	0.00	^(b)	$	(0.05	)	$	0.05

PowerShares NASDAQ Internet Portfolio

	Year Ended April 30						For the Period June 10, 2008* Through
	2011			2010			April 30, 2009
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	27.99		$	17.89		$	24.72
Net investment income (loss)**		(0.06	)		(0.12	)		(0.08	)
Net realized and unrealized gain (loss) on investments		13.44			10.22			(6.74	)
Total from investment operations		13.38			10.10			(6.82	)
Distributions to shareholders from:
Return of capital		—			—			(0.01	)
Net asset value at end of period	$	41.37		$	27.99		$	17.89
Share price at end of period***	$	41.40		$	28.01		$	17.88
NET ASSET VALUE, TOTAL RETURN****		47.80	%		56.46	%		(27.56	)%^(a)
SHARE PRICE TOTAL RETURN****		47.81	%		56.65	%		(27.60	)%^(a)
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	45,507		$	15,396		$	1,789
Ratio to average net assets of:
Expenses		0.60	%		0.60	%		0.60	%†
Net investment income (loss)		(0.17	)%		(0.46	)%		(0.51	)%†
Portfolio turnover rate ††		20	%		23	%		25	%
Undistributed net investment income (loss) included in price of units issued and redeemed**#	$	(0.10	)	$	(0.13	)	$	—

* 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) The net asset value, total return from Fund Inception (June 12, 2008, first day of trading on the exchange) to April 30, 2009 was (25.33)%. The share price total return from Fund Inception to April 30, 2009 was (26.53)%.

(b) Amount represents less than $0.005.

See Notes to Financial Statements.

Notes to Financial Statements

PowerShares Exchange-Traded Fund Trust

April 30, 2011

Note 1. Organization

Full Name				Short Name
PowerShares Dynamic Basic Materials Sector Portfolio				"Dynamic Basic Materials Sector Portfolio"

PowerShares Dynamic Consumer Discretionary Sector Portfolio				"Dynamic Consumer Discretionary Sector Portfolio"

PowerShares Dynamic Consumer Staples Sector Portfolio				"Dynamic Consumer Staples Sector Portfolio"

PowerShares Dynamic Energy Sector Portfolio				"Dynamic Energy Sector Portfolio"

PowerShares Dynamic Financial Sector Portfolio				"Dynamic Financial Sector Portfolio"

PowerShares Dynamic Healthcare Sector Portfolio				"Dynamic Healthcare Sector Portfolio"

PowerShares Dynamic Industrials Sector Portfolio				"Dynamic Industrials Sector Portfolio"

PowerShares Dynamic Technology Sector Portfolio				"Dynamic Technology Sector Portfolio"

PowerShares Dynamic Utilities Portfolio				"Dynamic Utilities Portfolio"

PowerShares NASDAQ Internet Portfolio				"NASDAQ Internet 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 NASDAQ Internet 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 by Authorized Participants, Shares are not individually redeemable securities of the Funds.

Fund				Index
Dynamic Basic Materials Sector Portfolio				Dynamic Basic Materials Sector Intellidex^SM Index

Dynamic Consumer Discretionary Sector Portfolio				Dynamic Consumer Discretionary Sector Intellidex^SM Index

Dynamic Consumer Staples Sector Portfolio				Dynamic Consumer Staples Sector Intellidex^SM Index

Dynamic Energy Sector Portfolio				Dynamic Energy Sector Intellidex^SM Index

Dynamic Financial Sector Portfolio				Dynamic Financial Sector Intellidex^SM Index

Dynamic Healthcare Sector Portfolio				Dynamic Healthcare Sector Intellidex^SM Index

Dynamic Industrials Sector Portfolio				Dynamic Industrials Sector Intellidex^SM Index

Dynamic Technology Sector Portfolio				Dynamic Technology Sector Intellidex^SM Index

Dynamic Utilities Portfolio				Dynamic Utilities Intellidex^SM Index

NASDAQ Internet Portfolio				NASDAQ Internet Index^SM

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

April 30, 2011

Note 2. Significant Accounting Policies

A. Security Valuation

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

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

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

April 30, 2011

American depository 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 accounting 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.

B. Other Risks

Non-Diversified Fund Risk. Dynamic Utilities Portfolio and NASDAQ Internet Portfolio are considered non-diversified and can invest a greater portion of assets in securities of individual issuers than a diversified fund. As a result, changes in the market value of a single investment could cause greater fluctuations in Share price than would occur in a diversified fund.

C. Federal Income Taxes

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

April 30, 2011

realized gains) that is distributed to the shareholders. Therefore, no provision for Federal income taxes is recorded in the financial statements.

D. Investment Income and Investment Transactions

E. Expenses

Expenses of the Trust, that are directly identifiable to a specific Fund, are applied to that Fund. Expenses that 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 NASDAQ Internet 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, sub-licensing fees related to its respective Underlying Intellidex or Underlying Index, any distribution fees or expenses, litigation expenses, fees payable to the Trust's Board members and officers who are not "interested persons" of the Trust or the Adviser, expenses incurred in connection with the Board members' services, including travel expenses and legal fees of counsel for those members of the Board who are not "interested persons" of the Trust and extraordinary expenses.

Expenses included for Dynamic Financial Sector Portfolio, in the accompanying financial statements, reflect the expenses of the Fund and do not include any expenses of the investment companies, in which it invests. The effects of the investment companies' expenses are included in the realized and unrealized gain (loss) on the investments in the investment companies.

The NASDAQ Internet 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 NASDAQ Internet Portfolio, including the cost of transfer agency, custody, fund administration, legal, audit and other services, except for distribution fees, if any, brokerage expenses, taxes, interest, litigation expenses and other extraordinary expenses.

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

April 30, 2011

F. Dividends and Distributions to Shareholders

G. Equalization

All of the 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 (loss) 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.

Note 3. Investment Advisory Agreement and Other Agreements

The Trust has entered into an Investment Advisory Agreement with the Adviser pursuant to 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 NASDAQ Internet Portfolio) has agreed to pay the Adviser an annual fee of 0.50% of the Fund's average daily net assets. The NASDAQ Internet Portfolio has agreed to pay the Adviser an annual unitary management fee of 0.60% of the Fund's average daily net assets and the Adviser has agreed to pay for substantially all expenses of the NASDAQ Internet Portfolio, including the cost of transfer agency, custody, fund administration, legal, audit and other services, except for distribution fees, if any, brokerage expenses, taxes, interest, litigation expenses and other extraordinary expenses.

The Adviser has entered into an Amended and Restated Excess Expense Agreement (the "Excess Expense Agreement") with the Trust, pursuant to which the Adviser has agreed to waive fees and/or pay Fund expenses to the extent necessary to prevent the operating expenses of each Fund other than the NASDAQ Internet Portfolio (excluding interest expense, brokerage commissions and other trading expenses, sub-licensing fees, offering costs, taxes, expenses of the investment companies that are paid indirectly as a result of share ownership of the investment companies 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, 2012. Offering costs excluded from the Expense Cap are: (a) initial legal fees pertaining to the Funds' Shares offered for sale; (b) initial Securities and Exchange Commission and state registration fees; and (c) initial fees paid to be listed on an exchange.

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

April 30, 2011

The amounts available for potential future recapture by the Adviser under the Excess Expense Agreement and the expiration schedule at April 30, 2011 are as follows:

	Total Potential		Potential Recapture Amounts Expiring
	Recapture Amounts		04/30/12		04/30/13		04/30/14
Dynamic Basic Materials Sector Portfolio	$	277,118	$	95,566	$	89,112	$	92,440
Dynamic Consumer Discretionary Sector Portfolio		325,452		106,300		102,088		117,064
Dynamic Consumer Staples Sector Portfolio		289,577		92,028		87,641		109,908
Dynamic Energy Sector Portfolio		265,196		97,775		91,813		75,608
Dynamic Financial Sector Portfolio		322,973		99,362		104,373		119,238
Dynamic Healthcare Sector Portfolio		239,082		68,849		57,703		112,530
Dynamic Industrials Sector Portfolio		275,486		80,755		88,551		106,180
Dynamic Technology Sector Portfolio		280,270		90,118		87,323		102,829
Dynamic Utilities Portfolio		293,134		87,649		98,255		107,230

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

Fund				Licensor
Dynamic Basic Materials Sector Portfolio				NYSE Arca

Dynamic Consumer Discretionary Sector Portfolio				NYSE Arca

Dynamic Consumer Staples Sector Portfolio				NYSE Arca

Dynamic Energy Sector Portfolio				NYSE Arca

Dynamic Financial Sector Portfolio				NYSE Arca

Dynamic Healthcare Sector Portfolio				NYSE Arca

Dynamic Industrials Sector Portfolio				NYSE Arca

Dynamic Technology Sector Portfolio				NYSE Arca

Dynamic Utilities Portfolio				NYSE Arca

NASDAQ Internet Portfolio				NASDAQ OMX Group, Inc.

Each Underlying Index name trademark is 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 NASDAQ Internet 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.

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

April 30, 2011

Note 4. Additional Valuation Information

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

Except for the Fund listed below, as of April 30, 2011, the securities in each Fund were valued based on Level 1 inputs. 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.

With respect to each Fund, during the fiscal year ended April 30, 2011, there were no significant transfers between investment levels.

	Investment in Securities
	Level 1		Level 2		Level 3		Total
NASDAQ Internet Portfolio Equity Securities	$	45,522,496	$	—	$	7,119	$	45,529,615

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

April 30, 2011

Note 5. Distributions to Shareholders and Tax Components of Net Assets

Tax Character of Distributions to Shareholders Paid During the Fiscal Years Ended April 30, 2011 and 2010:

	2011				2010
	Ordinary Income		Return of Capital		Ordinary Income		Return of Capital
Dynamic Basic Materials Sector Portfolio	$	1,632,096	$	—	$	372,907	$	—
Dynamic Consumer Discretionary Sector Portfolio		142,120		—		42,516		—
Dynamic Consumer Staples Sector Portfolio		712,831		—		710,824		—
Dynamic Energy Sector Portfolio		444,392		—		298,571		—
Dynamic Financial Sector Portfolio		315,046		—		228,052		—
Dynamic Healthcare Sector Portfolio		—		—		214,570		116,320
Dynamic Industrials Sector Portfolio		298,462		—		585,231		—
Dynamic Technology Sector Portfolio		—		20,352		—		—
Dynamic Utilities Portfolio		1,369,784		—		1,469,967		—

Tax Components of Net Assets at Fiscal Year-End:

	Undistributed Ordinary Income		Temporary Book/Tax Differences			Net Unrealized Appreciation		Capital Loss Carryforward			Post-October Deferrals*			Shares of Beneficial Interest		Total Net Assets
Dynamic Basic Materials Sector Portfolio	$	52,213	$	(4,790	)	$	20,392,543	$	(11,045,722	)	$	—		$	88,196,956	$	97,591,200
Dynamic Consumer Discretionary Sector Portfolio		32,901		(4,135	)		2,706,273		(5,281,768	)		(565,369	)		23,768,869		20,656,771
Dynamic Consumer Staples Sector Portfolio		104,622		(4,692	)		7,972,104		(7,907,453	)		(790,154	)		41,397,343		40,771,770
Dynamic Energy Sector Portfolio		336,007		(4,827	)		31,261,183		(8,848,334	)		—			169,158,816		191,902,845
Dynamic Financial Sector Portfolio		6,181		(4,267	)		3,023,246		(8,830,865	)		(146,140	)		28,444,319		22,492,474
Dynamic Healthcare Sector Portfolio		—		(6,329	)		12,074,528		(41,602,977	)		(396,801	)		92,753,512		62,821,933
Dynamic Industrials Sector Portfolio		261,862		(5,117	)		9,949,625		(31,994,466	)		—			135,416,813		113,628,717
Dynamic Technology Sector Portfolio		—		(4,774	)		4,902,967		(21,361,976	)		(479,401	)		66,736,583		49,793,399
Dynamic Utilities Portfolio		118,809		(4,901	)		5,031,056		(10,682,094	)		(1,167,319	)		53,793,290		47,088,841
NASDAQ Internet Portfolio		—		—			10,627,973		(172,721	)		(90,869	)		35,142,878		45,507,261

* Capital loss incurred after October 31 ("Post-October losses") within the taxable year are deemed to arise on the first business day of each Fund's next taxable year.

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

April 30, 2011

The following Funds have capital loss carryforward amounts as of April 30, 2011, which expire on April 30 of each year listed below:

	2015		2016		2017		2018		2019		Total*
Dynamic Basic Materials Sector Portfolio	$	—	$	205,528	$	3,783,798	$	4,534,904	$	2,521,492	$	11,045,722
Dynamic Consumer Discretionary Sector Portfolio		—		1,246,058		1,993,654		—		2,042,056		5,281,768
Dynamic Consumer Staples Sector Portfolio		—		634,544		2,156,980		3,935,363		1,180,566		7,907,453
Dynamic Energy Sector Portfolio		—		880,885		2,869,667		3,914,682		1,183,100		8,848,334
Dynamic Financial Sector Portfolio		—		614,940		1,821,971		4,413,894		1,980,060		8,830,865
Dynamic Healthcare Sector Portfolio		—		2,234,184		17,890,879		18,737,951		2,739,963		41,602,977
Dynamic Industrials Sector Portfolio		—		1,476,057		6,525,387		21,245,288		2,747,734		31,994,466
Dynamic Technology Sector Portfolio		—		2,465,875		8,220,697		7,658,564		3,016,840		21,361,976
Dynamic Utilities Portfolio		430,964		2,124,736		1,366,073		5,885,935		874,386		10,682,094
NASDAQ Internet Portfolio		—		—		2,112		95,746		74,863		172,721

* 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 6. Investment Transactions

	Purchases		Sales
Dynamic Basic Materials Sector Portfolio	$	18,755,492	$	18,043,051
Dynamic Consumer Discretionary Sector Portfolio		13,415,021		13,362,493
Dynamic Consumer Staples Sector Portfolio		20,657,777		20,502,752
Dynamic Energy Sector Portfolio		32,984,063		30,537,090
Dynamic Financial Sector Portfolio		11,136,137		10,743,680
Dynamic Healthcare Sector Portfolio		39,858,488		39,615,669
Dynamic Industrials Sector Portfolio		23,942,222		23,594,042
Dynamic Technology Sector Portfolio		26,733,321		27,428,044
Dynamic Utilities Portfolio		27,877,867		27,695,900
NASDAQ Internet Portfolio		5,303,651		5,301,350

For the fiscal year ended April 30, 2011, in-kind transactions associated with creations and redemptions were as follows:

	Securities Received		Securities Delivered
Dynamic Basic Materials Sector Portfolio	$	69,340,647	$	40,713,387
Dynamic Consumer Discretionary Sector Portfolio		33,963,366		36,968,209
Dynamic Consumer Staples Sector Portfolio		18,674,648		22,968,305
Dynamic Energy Sector Portfolio		185,979,278		7,527,382
Dynamic Financial Sector Portfolio		23,042,654		20,682,566
Dynamic Healthcare Sector Portfolio		63,652,629		105,923,005
Dynamic Industrials Sector Portfolio		128,915,837		61,169,987
Dynamic Technology Sector Portfolio		57,622,402		52,467,694
Dynamic Utilities Portfolio		46,258,564		43,539,835
NASDAQ Internet Portfolio		26,087,406		6,955,322

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

April 30, 2011

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

At April 30, 2011, the aggregate cost and the net unrealized appreciation of investments for tax purposes were as follows:

	Cost		Net Unrealized Appreciation		Gross Unrealized Appreciation		Gross Unrealized (Depreciation)
Dynamic Basic Materials Sector Portfolio	$	77,330,721	$	20,392,543	$	20,820,892	$	(428,349	)
Dynamic Consumer Discretionary Sector Portfolio		18,008,513		2,706,273		2,905,218		(198,945	)
Dynamic Consumer Staples Sector Portfolio		32,842,985		7,972,104		7,981,205		(9,101	)
Dynamic Energy Sector Portfolio		160,686,473		31,261,183		31,572,422		(311,239	)
Dynamic Financial Sector Portfolio		19,540,622		3,023,246		3,172,331		(149,085	)
Dynamic Healthcare Sector Portfolio		50,872,083		12,074,528		12,325,836		(251,308	)
Dynamic Industrials Sector Portfolio		103,770,818		9,949,625		10,619,963		(670,338	)
Dynamic Technology Sector Portfolio		44,968,292		4,902,967		5,817,570		(914,603	)
Dynamic Utilities Portfolio		42,078,815		5,031,056		5,396,089		(365,033	)
NASDAQ Internet Portfolio		34,901,642		10,627,973		11,442,192		(814,219	)

Note 7. Reclassification of Permanent Differences

Primarily as a result of differing book/tax treatment of investment activity, on April 30, 2011, amounts were reclassified between undistributed net investment income (loss), undistributed net realized gain (loss) and Shares of beneficial interest. These reclassifications had no effect on the net assets of each Fund. For the fiscal year ended April, 30, 2011, the reclassifications were as follow:

	Undistributed Net Investment Income (Loss)			Undistributed Net Realized Gain (Loss)			Shares of Beneficial Interest
Dynamic Basic Materials Sector Portfolio	$	(469,589	)	$	(9,118,848	)	$	9,588,437
Dynamic Consumer Discretionary Sector Portfolio		(14,507	)		(4,940,117	)		4,954,624
Dynamic Consumer Staples Sector Portfolio		46,060			(3,711,480	)		3,665,420
Dynamic Energy Sector Portfolio		(232,786	)		(15,104,392	)		15,337,178
Dynamic Financial Sector Portfolio		(3,550	)		(2,647,538	)		2,651,088
Dynamic Healthcare Sector Portfolio		(6,475	)		(15,124,808	)		15,131,283
Dynamic Industrials Sector Portfolio		16,427			(8,661,155	)		8,644,728
Dynamic Technology Sector Portfolio		34,716			(9,671,751	)		9,637,035
Dynamic Utilities Portfolio		14,215			(4,209,586	)		4,195,371
NASDAQ Internet Portfolio		121,005			(2,718,734	)		2,597,729

Note 8. Trustees' Fees

The Fund compensates each Trustee who is not an "interested person" as defined in the 1940 Act (an "Independent Trustee"). The Adviser, as a result of the unitary management fee, pays for such compensation on behalf of the NASDAQ Internet Portfolio. The Non-Independent Trustees of the Trust do not receive any Trustees' fees.

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

April 30, 2011

Note 9. Capital

Note 10. Indemnifications

Report of Independent Registered Public Accounting Firm

To the Board of Trustees and Shareholders of PowerShares Exchange-Traded Fund Trust:

/s/ PricewaterhouseCoopers LLP
New York, New York
June 24, 2011

Tax Information

The following distribution information is being provided as required by the Internal Revenue Code or to meet a specific state's requirement.

Each Fund designates the following amounts or, if subsequently determined to be different, the maximum amount allowable for its fiscal year ended April 30, 2011:

Federal Income Tax Information

	Qualified Dividend Income*			Corporate Dividend Received Deduction*
Dynamic Basic Materials Sector Portfolio		100	%		100	%
Dynamic Consumer Discretionary Sector Portfolio		100	%		100	%
Dynamic Consumer Staples Sector Portfolio		100	%		100	%
Dynamic Energy Sector Portfolio		100	%		100	%
Dynamic Financial Sector Portfolio		100	%		100	%
Dynamic Healthcare Sector Portfolio		0	%		0	%
Dynamic Industrials Sector Portfolio		100	%		100	%
Dynamic Technology Sector Portfolio		0	%		0	%
Dynamic Utilities Portfolio		100	%		100	%
NASDAQ Internet Portfolio		0	%		0	%

* The above percentages are based on ordinary income dividends paid to shareholders during the Fund's fiscal year.

Supplemental Information

Trustees and Officers

The Trustees and Officers information is current as of April 30, 2011.

Name, Address and Age of
Independent Trustees

Position(s)
Held
with Trust

Term of
Office
and
Length of
Time
Served*

Principal
Occupation(s) During
Past 5 Years

Number of
Portfolios
in Fund
Complex**
Overseen by
Independent
Trustees

Other Directorships Held
by Independent Trustees

Ronn R. Bagge
(53)
c/o Invesco PowerShares
Capital Management LLC
301 West Roosevelt Road
Wheaton, IL 60187

Trustee

Since 2003

Founder and Principal, YQA Capital Management LLC (1998-Present); formerly Owner/CEO of Electronic Dynamic Balancing Co., Inc. (high-speed rotating equipment service provider)

107

None

Todd J. Barre
(53)
c/o Invesco PowerShares
Capital Management LLC
301 West Roosevelt Road
Wheaton, IL 60187

Trustee

Since 2010

107

None

* This is the date the Trustee began serving the Trust. Each Trustee serves an indefinite term, until his successor is elected.

Supplemental Information (Continued)

Trustees and Officers (Continued)

Name, Address and Age of
Independent Trustees

Position(s)
Held
with Trust

Term of
Office
and
Length of
Time
Served*

Principal
Occupation(s) During
Past 5 Years

Number of
Portfolios
in Fund
Complex**
Overseen by
Independent
Trustees

Other Directorships Held
by Independent Trustees

Marc M. Kole
(50)
c/o Invesco PowerShares Capital Management LLC
301 West Roosevelt Road
Wheaton, IL 60187

Trustee

Since 2006

107

None

Philip M. Nussbaum
(49)
c/o Invesco PowerShares Capital Management LLC
301 West Roosevelt Road
Wheaton, IL 60187

Trustee

Since 2003

Chairman, Performance Trust Capital Partners (2004-Present)

107

None

* This is the date the Trustee began serving the Trust. Each Trustee serves an indefinite term, until his successor is elected.

Supplemental Information (Continued)

Trustees and Officers (Continued)

Name, Address and Age of
Independent Trustees

Position(s)
Held
with Trust

Term of
Office
and
Length of
Time
Served*

Principal
Occupation(s) During
Past 5 Years

Number of
Portfolios
in Fund
Complex**
Overseen by
Independent
Trustees

Other Directorships Held
by Independent Trustees

Donald H. Wilson
(51)
c/o Invesco PowerShares Capital Management LLC
301 West Roosevelt Road
Wheaton, IL 60187

Trustee

Since 2006

107

None

* This is the date the Trustee began serving the Trust. Each Trustee serves an indefinite term, until his successor is elected.

Supplemental Information (Continued)

Trustees and Officers (Continued)

Name, Address and Age of
Interested Trustees

Position(s)
Held
with Trust

Term of
Office
and
Length of
Time
Served*

Principal
Occupation(s) During
Past 5 Years

Number of
Portfolios
in Fund
Complex**
Overseen by
Interested
Trustees

Other Directorships Held
by Interested Trustees

H. Bruce Bond
(47)
Invesco PowerShares Capital Management LLC
301 West Roosevelt Road
Wheaton, IL 60187

Chairman of the Board and Trustee

Since 2003

Chairman, Invesco Power-Shares Capital Management LLC (2009-Present); formerly, Managing Director, Invesco PowerShares Capital Management LLC (2002-2009); Manager, Nuveen Investments (1998-2002)

107

None

* This is the date the Trustee began serving the Trust. Each Trustee serves an indefinite term, until his successor is elected.

Supplemental Information (Continued)

Trustees and Officers (Continued)

Name, Address and Age of
Interested Trustees

Position(s)
Held
with Trust

Term of
Office
and
Length of
Time
Served*

Principal
Occupation(s) During
Past 5 Years

Number of
Portfolios
in Fund
Complex**
Overseen by
Interested
Trustees

Other Directorships Held
by Interested Trustees

Kevin M. Carome
(54)
Invesco Ltd.
Two Peachtree Pointe 1555 Peachtree St., N.E. Suite 1800
Atlanta, GA 30309

Trustee

Since 2010

107

None

* This is the date the Trustee began serving the Trust. Each Trustee serves an indefinite term, until his successor is elected.

Supplemental Information (Continued)

Trustees and Officers (Continued)

Name, Address and Age
of Executive Officer