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)

3500 Lacey Road

                         Downers Grove, IL 60515                            

(Address of principal executive offices) (Zip code)

Andrew Schlossberg

President

3500 Lacey Road

                             Downers Grove, IL 60515                            

(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, 2015

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:

April 30, 2015

2015 Annual Report to Shareholders

DWAQ	PowerShares DWA NASDAQ Momentum Portfolio
PWC	PowerShares Dynamic Market Portfolio
PRF	PowerShares FTSE RAFI US 1000 Portfolio
PRFZ	PowerShares FTSE RAFI US 1500 Small-Mid Portfolio

Table of Contents

The Market Environment	3
Manager’s Analysis	4
Broad Market Portfolios
Schedules of Investments
PowerShares DWA NASDAQ Momentum Portfolio (DWAQ)	14
PowerShares Dynamic Market Portfolio (PWC)	16
PowerShares FTSE RAFI US 1000 Portfolio (PRF)	18
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ)	28
Statements of Assets and Liabilities	43
Statements of Operations	44
Statements of Changes in Net Assets	46
Financial Highlights	48
Notes to Financial Statements	50
Report of Independent Registered Public Accounting Firm	58
Fees and Expenses	59
Tax Information	60
Trustees and Officers	61
Board Considerations Regarding Continuation of Investment Advisory Agreement	67

2

The Market Environment

Domestic Equity

Slow and steady improvement in the US economy and continued low interest rates led the US equity market higher during the fiscal year ended April 30, 2015. As the US economy continued along a slow growth path, the US Federal Reserve steadily reduced its asset purchase program, finally ending all purchases in October 2014. The reporting period began with corporate earnings bouncing back from a weather-related downturn resulting from an unusually harsh winter that negatively affected consumer spending. Stocks generally rallied through the summer of 2014 despite political upheaval in Ukraine and signs of economic sluggishness in China. In mid-September, as investors wrestled with evidence that economic growth appeared to be stronger in the US than in the rest of the world, the price of oil began a sharp and prolonged decline, causing US equities to fall. US equities recovered before the end of calendar year 2014, however. As calendar year 2015 began, investors were generally heartened by positive US economic data, but there was concern that if Greece failed to reach an agreement with the eurozone on a financial bailout plan, the repercussions would be felt more broadly. On balance, however, the general trend for US equities was positive.

3

DWAQ	Manager’s Analysis
	PowerShares DWA NASDAQ Momentum Portfolio (DWAQ)

As an index fund, the PowerShares DWA NASDAQ Momentum Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Dorsey Wright NASDAQ Technical Leaders^TM Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks of companies that comprise the Index.

Dorsey Wright & Associates, LLC (the “Index Provider”) compiles, maintains and calculates the Index. Strictly in accordance with its existing guidelines and mandated procedures, the Index Provider includes companies in the Index pursuant to a proprietary methodology that is designed to identify companies that demonstrate powerful relative strength characteristics based upon their market performance. The Index Provider ranks a starting universe of approximately 1,000 equity securities traded on The NASDAQ Stock Market, LLC that have the largest market capitalizations using a proprietary methodology based upon each security’s market performance to determine each security’s “momentum” score. A “momentum” style of investing emphasizes investing in securities that have had better recent performance compared to other securities. Each security’s score is based on intermediate and long-term upward price movements relative to a representative market benchmark and the other eligible securities. The Index Provider identifies 100 securities with the highest momentum score to include in the Index. Securities with larger momentum scores receive greater weight within the Index. The Index is rebalanced and reconstituted quarterly, but no changes are made to the Index between these quarterly rebalance dates. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2015, on a market price basis, the Fund returned 16.76%. On a net asset value (“NAV”) basis, the Fund returned 16.66%. During the same time period, the Index returned 17.42%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses incurred by the Fund.

During this same time period, the NASDAQ Composite Index-PI, (the “Benchmark Index”) returned 20.10%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 2,570 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of broad-based equity market benchmark. The Benchmark Index was selected for its recognition in the marketplace, and its performance comparison is a useful measure for investors as a broad representation of the U.S. equity market.

The performance of the Fund differed from the Benchmark Index because the Index employs a proprietary stock selection and weighting methodology whereas the Benchmark Index selects and weights stocks based on market capitalization. More specifically, the Fund was most overweight in the health care sector and most underweight in the information technology sector during the fiscal year ended April 30, 2015. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to the Fund being underweight the information technology sector relative to the Benchmark Index.

For the fiscal year ended April 30, 2015, the health care sector contributed most significantly to the Fund’s return, followed by the information technology and financials sectors, respectively. The energy sector detracted most significantly from the Fund’s return, followed by the materials sector (no longer held).

Positions that contributed most significantly to the Fund’s return included Dyax Corp., a health care company (portfolio average weight of 1.08%), and Apple, Inc., an information technology company (portfolio average weight of 3.17%). Positions that detracted most significantly from the Fund’s return included GT Advanced Technologies Inc., an information technology company (no longer held at fiscal year-end), and Trinity Biotech Plc Sponsored ADR Class A, a health care company (no longer held at fiscal year-end).

Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2015
Health Care	36.4
Information Technology	21.9
Consumer Discretionary	15.5
Industrials	10.5
Financials	9.7
Consumer Staples	3.1
Energy	2.2
Telecommunication Services	0.7
Money Market Fund Plus Other Assets Less Liabilities	(0.0)

4

PowerShares DWA NASDAQ Momentum Portfolio (DWAQ) (continued)

Top Ten Fund Holdings (% of the Fund’s Net Assets) as of April 30, 2015
Security
Apple, Inc.	3.1
Jazz Pharmaceuticals PLC	3.0
Gilead Sciences, Inc.	2.9
Henry Schein, Inc.	2.7
Regeneron Pharmaceuticals, Inc.	2.5
Cerner Corp.	2.2
Papa John’s International, Inc.	2.1
Credit Acceptance Corp.	2.0
Dyax Corp.	2.0
BofI Holding, Inc.	1.9
Total	24.4

5

PowerShares DWA NASDAQ Momentum Portfolio (DWAQ) (continued)

Growth of a $10,000 Investment

Fund Performance History as of April 30, 2015

	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			10 Years Average Annualized			10 Years Cumulative			Fund Inception†
Index																						Average Annualized			Cumulative
Blended-Dorsey Wright NASDAQ Technical LeadersTM Index††		17.42	%		15.19	%		52.83	%		12.03	%		76.49	%		6.83	%		93.62	%		9.34	%		191.97	%
NASDAQ Composite Index-PI		20.10			17.50			62.21			14.96			100.77			9.91			157.15			10.62			235.57
Fund
NAV Return		16.66			14.31			49.35			11.23			70.27			6.18			82.07			8.63			170.15
Market Price Return		16.76			14.34			49.48			11.24			70.36			6.18			82.09			8.63			169.96

Fund Inception: May 1, 2003

Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2016. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.92% and the net annual operating expense ratio was indicated as 0.60%. The Financial Highlights section of the Shareholders Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market 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.

Blended-Index and Benchmark Index performance results are based upon a hypothetical investment in its constituent securities. Blended-Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Blended-Index and Benchmark Index do 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.

^†  Fund, Blended-Index and Benchmark Index returns are based on the inception date of the Fund.

^††  The Blended-Dorsey Wright NASDAQ Technical Leaders^TM Index performance is comprised of the performance of the Dynamic OTC Intellidex^SM Index, the Fund’s previous underlying index, from Fund inception through the conversion date, February 19, 2014, followed by the performance of the Index, starting from the conversion date through April 30, 2015.

PI — Price Only, and does not reflect dividends paid by the holdings in the Benchmark Index

6

PWC	Manager’s Analysis
	PowerShares Dynamic Market Portfolio (PWC)

As an index fund, the PowerShares Dynamic Market Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Dynamic Market Intellidex^SM Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks that comprise the Index.

NYSE Arca, Inc. (the “Index Provider”) compiles, maintains and calculates the Index. Strictly in accordance with its existing guidelines and mandated procedures, the Index Provider includes stocks that, based upon its rankings, it believes possess the greatest investment potential for the Index. The Index uses market-like sector weightings and market-capitalization groupings in seeking to produce a sector and size dispersion similar to the overall broad market. The Index Provider ranks the 2,000 largest U.S. stocks (by market capitalization) traded on the NYSE, NYSE MKT and the NASDAQ for investment potential using a proprietary model. The Index Provider ranks companies quarterly, based on a variety of criteria, including price momentum, earnings momentum, quality, management action, and value factors, and then sorts them based on their cumulative score on the above criteria. The Index Provider divides the universe of stocks into ten economic sectors and divides each sector into two market-capitalization groupings: large and mid/small. The Index includes 100 companies from the top of each sector and size category. The Index Provider selects a defined number of the top ranked large and mid/small stocks within each sector. The number of stocks selected within a sector is predetermined and based on the percentage of the overall market represented by such sector. The Index Provider allocates 70% of the Index weighting to 30 large-capitalization stocks across the sectors and 30% of the Index weighting to 70 mid/small-capitalization stocks across the sectors. The Index Provider equally weights stock within their size groups. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2015, on a market price basis, the Fund returned 5.49%. On a net asset value (“NAV”) basis, the Fund returned 5.58%. During the same time period, the Index returned 6.37%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period.

During this same time period, the S&P 500^® Index (the “Benchmark Index”) returned 12.98%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 500 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of a similar broad U.S. equity market benchmark. The Benchmark Index was selected for its

recognition in the marketplace, and its performance comparison is a useful measure for investors as a broad representation of the broad U.S. stock market.

The performance of the Fund differed from the Benchmark Index in part because the Index employs a modified equal weighting and stock selection methodology whereas the Benchmark Index selects and weights stocks based on market capitalization.

Relative to the Benchmark Index, the Fund was most overweight in the consumer discretionary sector and most underweight in the financials sector during the fiscal year ended April 30, 2015. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to allocation among, and stock selection within, the energy sector, as well as stock selection in the information technology, consumer discretionary, and financials sectors.

For the fiscal year ended April 30, 2015, the health care sector contributed most significantly to the Fund’s return, followed by the information technology and consumer staples sectors, respectively. The energy sector was the only detracting sector.

Positions that contributed most significantly to the Fund’s return included Skyworks Solutions, Inc., an information technology company (portfolio average weight of 2.09%), and Southwest Airlines Co., an industrials company (portfolio average weight of 2.49%). Positions that detracted most significantly from the Fund’s return included Halliburton Co., an energy company (no longer held at fiscal year-end), and Cameron International Corp., an energy company (no longer held at fiscal year-end).

Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2015
Information Technology	19.6
Financials	14.5
Health Care	14.3
Consumer Discretionary	13.5
Industrials	10.9
Energy	9.4
Consumer Staples	9.0
Materials	3.8
Utilities	2.9
Telecommunication Services	2.1
Money Market Fund Plus Other Assets Less Liabilities	(0.0)

7

PowerShares Dynamic Market Portfolio (PWC) (continued)

Top Ten Fund Holdings (% of the Fund’s Net Assets) as of April 30, 2015
Security
Kroger Co. (The)	3.2
CVS Health Corp.	3.1
Tesoro Corp.	3.1
Valero Energy Corp.	3.1
Skyworks Solutions, Inc.	3.0
Apple, Inc.	2.8
AmerisourceBergen Corp.	2.8
Eastman Chemical Co.	2.7
Qorvo, Inc.	2.7
Hewlett-Packard Co.	2.7
Total	29.2

8

PowerShares Dynamic Market Portfolio (PWC) (continued)

Growth of a $10,000 Investment

Fund Performance History as of April 30, 2015

	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			10 Years Average Annualized			10 Years Cumulative			Fund Inception†
Index																						Average Annualized			Cumulative
Dynamic Market IntellidexSM Index		6.37	%		18.53	%		66.51	%		14.91	%		100.33	%		8.27	%		121.33	%		10.48	%		230.45	%
S&P 500® Index		12.98			16.73			59.05			14.33			95.31			8.32			122.39			9.30			190.74
Fund
NAV Return		5.58			17.67			62.93			14.11			93.49			7.65			109.06			9.78			206.38
Market Price Return		5.49			17.66			62.88			14.09			93.32			7.66			109.09			9.77			206.09

Fund Inception: May 1, 2003

Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2016. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.60%. The Financial Highlights section of the Shareholders Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund

at NAV and Market 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 and Benchmark 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 and Benchmark Index do 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.

^†  Fund, Index and Benchmark Index returns are based on the inception date of the Fund.

9

PRF	Manager’s Analysis
	PowerShares FTSE RAFI US 1000 Portfolio (PRF)

As an index fund, the PowerShares FTSE RAFI US 1000 Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the FTSE RAFI US 1000 Index (the “Index”). The Fund generally will invest at least 90% of its total assets in securities that comprise the Index.

FTSE International Limited and Research Affiliates, LLC (collectively, the “Index Provider”) compiles, maintains and calculates the Index. Strictly in accordance with its existing guidelines and mandated procedures, the Index Provider selects its components from the universe of stocks of companies that are incorporated in the United States. The Index is designed to track the performance of the largest U.S. equity stocks based on four fundamental measures of firm size: book value, cash flow, sales and dividends. The Index Provider ranks the universe of companies by equally weighting each fundamental measure. It then takes 1,000 stocks with the highest fundamental weight and assigns a weight equal to its investable RAFI fundamental value, rather than their market capitalization. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2015, on a market price basis, the Fund returned 10.23%. On a net asset value (“NAV”) basis, the Fund returned 10.19%. During the same time period, the Index returned 10.61%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period.

During this same time period, the Russell 1000^® Index (the “Benchmark Index”) returned 13.00%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 1,000 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of a broad U.S. equity large cap benchmark. The Benchmark Index was selected for its recognition in the marketplace, and its performance comparison is a useful measure for investors as a broad representation of the U.S. large cap market.

The performance of the Fund differed from the Benchmark Index in part because the Index employs a fundamental weighting and stock selection methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization.

Relative to the Benchmark Index, the Fund was most overweight in the financials sector and most underweight in the information technology sector during the fiscal year ended April 30, 2015. The majority of the Fund’s underperformance relative to the

Benchmark Index during that period can be attributed to the Fund’s underweighted allocation to the information technology sector.

For the fiscal year ended April 30, 2015, the health care sector contributed most significantly to the Fund’s return, followed by the financials and consumer discretionary sectors, respectively. The energy sector was the only detracting sector.

Positions that contributed most significantly to the Fund’s return included Apple, Inc., an information technology company (portfolio average weight of 1.32%), and Microsoft Corp., an information technology company (portfolio average weight of 1.19%). Positions that detracted most significantly from the Fund’s return included Exxon Mobil Corp., an energy company (portfolio average weight of 2.89%), and Chevron Corp., an energy company (portfolio average weight of 2.01%).

Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2015
Financials	21.2
Energy	12.6
Information Technology	11.8
Consumer Discretionary	11.4
Industrials	10.6
Health Care	10.2
Consumer Staples	9.3
Utilities	5.0
Materials	4.0
Telecommunication Services	3.9
Money Market Fund Plus Other Assets Less Liabilities	(0.0)
Top Ten Fund Holdings (% of the Fund’s Net Assets) as of April 30, 2015
Security
Exxon Mobil Corp.	3.0
Chevron Corp.	2.1
AT&T, Inc.	2.0
JPMorgan Chase & Co.	1.9
General Electric Co.	1.8
Wells Fargo & Co.	1.5
Bank of America Corp.	1.4
Citigroup, Inc.	1.4
Berkshire Hathaway, Inc., Class B	1.4
Verizon Communications, Inc.	1.4
Total	17.9

10

PowerShares FTSE RAFI US 1000 Portfolio (PRF) (continued)

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

Fund Performance History as of April 30, 2015

	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			Fund Inception†
Index																Average Annualized			Cumulative
FTSE RAFI US 1000 Index		10.61	%		18.29	%		65.51	%		14.34	%		95.45	%		9.20	%		128.00	%
Russell 1000® Index		13.00			16.95			59.96			14.47			96.53			8.00			105.62
Fund
NAV Return		10.19			17.84			63.65			13.91			91.78			8.73			118.87
Market Price Return		10.23			17.84			63.64			13.89			91.63			8.75			119.37

Fund Inception: December 19, 2005

Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2016. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.41% and the net annual operating expense ratio was indicated as 0.39%. The Financial Highlights section of the Shareholders Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund

at NAV and Market 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 and Benchmark 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 and Benchmark Index do 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.

^†  Fund, Index and Benchmark Index returns are based on the inception date of the Fund.

11

PRFZ	Manager’s Analysis
	PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ)

As an index fund, the PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the FTSE RAFI US 1500 Small-Mid Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks that comprise the Index.

FTSE International Limited and Research Affiliates, LLC (collectively, the “Index Provider”) compiles, maintains and calculates the Index. Strictly in accordance with its existing guidelines and mandated procedures, the Index Provider selects the components from the universe of stocks of companies that are incorporated in the United States. The Index is designed to track the performance of small and medium-sized U.S. equity stocks based on four fundamental measures of firm size: book value, cash flow, sales and dividends. The Index Provider calculates an overall weight for each company by equally weighting each fundamental measure and excluding dividends from the average for companies that have never paid dividends. The Index Provider then excludes the equities with a fundamental weight ranking of 1 through 1,000 and instead includes the equities with a fundamental weight ranking of 1,001 through 2,500. Finally, the Index Provider assigns a weight to each of these 1,500 stocks by their investable RAFI fundamental value rather than their market capitalization. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2015, on a market price basis, the Fund returned 8.78%. On a net asset value (“NAV”) basis, the Fund returned 8.80%. During the same time period, the Index returned 9.05%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period, offset by revenues received from the securities lending program in which the Fund participates.

During this same time period, the Russell 2000^® Index (the “Benchmark Index”) returned 9.71%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 2,000 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of a U.S. equity small cap stock benchmark. The Benchmark Index was selected for its recognition in the marketplace, and its performance comparison is a useful measure for investors as a broad representation of the U.S. small cap stock market.

The performance of the Fund differed from the Benchmark Index in part because the Index employs a fundamental weighting and stock selection methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization.

Relative to the Benchmark Index, the Fund was most overweight in the consumer discretionary sector and most underweight in the

health care sector during the fiscal year ended April 30, 2015. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to the Fund’s underweight position in the health care sector.

For the fiscal year ended April 30, 2015, the information technology sector contributed most significantly to the Fund’s return, followed by the financials and health care sectors, respectively. The energy sector detracted most significantly from the Fund’s return, followed by the materials sector.

Positions that contributed most significantly to the Fund’s return included Matson, Inc., an industrials company (portfolio average weight of 0.73%), and Pantry, Inc., a consumer discretionary company (no longer held at fiscal year-end). Positions that detracted most significantly from the Fund’s return included Stone Energy Corp., an energy company (no longer held at fiscal year-end), and Energy XXI Ltd., an energy company (no longer held at fiscal year-end).

Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2015
Financials	22.3
Consumer Discretionary	17.3
Information Technology	17.1
Industrials	16.3
Energy	7.6
Health Care	7.2
Materials	5.7
Consumer Staples	3.4
Utilities	1.6
Telecommunication Services	1.5
Money Market Funds Plus Other Assets Less Liabilities	0.0
Top Ten Fund Holdings (% of the Fund’s Net Assets) as of April 30, 2015
Security
GrafTech International Ltd.	0.2
Life Time Fitness, Inc.	0.2
ScanSource, Inc.	0.2
Global Payments, Inc.	0.2
ARRIS Group, Inc.	0.2
Ulta Salon, Cosmetics & Fragrance, Inc.	0.2
Sohu.com, Inc.	0.2
IAC/InterActiveCorp.	0.2
Tetra Tech, Inc.	0.2
Regeneron Pharmaceuticals, Inc.	0.2
Total	2.0

12

PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ) (continued)

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

Fund Performance History as of April 30, 2015

	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			Fund Inception†
Index																Average Annualized			Cumulative
FTSE RAFI US 1500 Small-Mid Index		9.05	%		17.59	%		62.59	%		13.15	%		85.50	%		10.08	%		128.67	%
Russell 2000® Index		9.71			15.87			55.58			12.73			82.03			7.53			86.81
Fund
NAV Return		8.80			17.33			61.50			12.90			83.46			9.81			123.83
Market Price Return		8.78			17.32			61.49			12.91			83.54			9.81			123.85

Fund Inception: September 20, 2006

Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2016. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.42% and the net annual operating expense ratio was indicated as 0.39%. The Financial Highlights section of the Shareholders Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund

at NAV and Market 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 and Benchmark 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 and Benchmark Index do 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.

^†  Fund, Index and Benchmark Index returns are based on the inception date of the Fund.

13

Schedule of Investments^(a)

PowerShares DWA NASDAQ Momentum Portfolio (DWAQ)

April 30, 2015

Number of Shares			Value
		Common Stocks—100.0%
		Consumer Discretionary—15.5%
	1,168	Charter Communications, Inc., Class A(b)	$	218,486
	1,919	Cracker Barrel Old Country Store, Inc.		254,229
	15,972	Denny’s Corp.(b)		166,269
	2,447	DISH Network Corp., Class A(b)		165,564
	2,191	Expedia, Inc., Class A		206,458
	4,193	Fiesta Restaurant Group, Inc.(b)		211,956
	2,328	G-III Apparel Group Ltd.(b)		258,827
	2,039	Jack in the Box, Inc.		176,924
	1,680	O’Reilly Automotive, Inc.(b)		365,954
	10,374	Papa John’s International, Inc.		636,652
	7,253	Popeyes Louisiana Kitchen, Inc.(b)		403,847
	2,257	Red Robin Gourmet Burgers, Inc.(b)		169,478
	3,937	Ross Stores, Inc.		389,291
	16,162	Ruth’s Hospitality Group, Inc.		235,157
	6,387	Sonic Corp.		182,988
	4,915	Texas Roadhouse, Inc.		165,144
	5,131	Tractor Supply Co.		441,574
				4,648,798
		Consumer Staples—3.1%
	33,096	Fairway Group Holdings Corp., Class A(b)		175,740
	4,830	Hain Celestial Group, Inc. (The)(b)		290,959
	1,769	J & J Snack Foods Corp.		184,560
	5,640	Whole Foods Market, Inc.		269,366
				920,625
		Energy—2.2%
	2,689	Diamondback Energy, Inc.(b)		222,031
	13,763	Green Plains, Inc.		428,580
				650,611
		Financials—9.7%
	10,948	Bank of the Ozarks, Inc.		424,345
	6,139	BofI Holding, Inc.(b)		563,622
	2,554	Credit Acceptance Corp.(b)		603,255
	6,495	E*TRADE Financial Corp.(b)		186,991
	5,943	East West Bancorp, Inc.		241,226
	6,044	MarketAxess Holdings, Inc.		518,877
	4,071	Pinnacle Financial Partners, Inc.		193,983
	5,177	PrivateBancorp, Inc.		191,911
				2,924,210
		Health Care—36.4%
	3,602	ABIOMED, Inc.(b)		227,718
	5,773	Acadia Healthcare Co., Inc.(b)		395,450
	14,817	Affymetrix, Inc.(b)		179,730
	2,865	Alkermes PLC(b)		158,635
	3,643	AMAG Pharmaceuticals, Inc.(b)		185,684
	4,975	Anacor Pharmaceuticals, Inc.(b)		262,133
	1,309	Atrion Corp.		425,229
	846	Biogen, Inc.(b)		316,345
	1,571	Celgene Corp.(b)		169,762
	5,904	Celldex Therapeutics, Inc.(b)		141,696
	9,121	Cerner Corp.(b)		654,979
	6,643	DexCom, Inc.(b)		448,868
	24,628	Dyax Corp.(b)		588,855
	1,963	Endo International PLC(b)		165,020
	8,632	Gilead Sciences, Inc.(b)		867,602
	5,926	Henry Schein, Inc.(b)		812,455
	2,588	ICON PLC (Ireland)(b)		166,512

Number of Shares			Value
		Common Stocks (continued)
		Health Care (continued)
	1,577	IDEXX Laboratories, Inc.(b)	$	197,708
	1,625	Illumina, Inc.(b)		299,406
	3,585	Incyte Corp.(b)		348,319
	5,077	Jazz Pharmaceuticals PLC(b)		907,260
	52,353	MiMedx Group, Inc.(b)		492,118
	3,997	Mylan NV(b)		288,823
	4,812	Natus Medical, Inc.(b)		181,461
	7,663	Neurocrine Biosciences, Inc.(b)		261,232
	29,832	Novavax, Inc.(b)		230,601
	1,665	Regeneron Pharmaceuticals, Inc.(b)		761,671
	10,918	Spectranetics Corp. (The)(b)		280,047
	1,102	United Therapeutics Corp.(b)		175,978
	1,397	Vertex Pharmaceuticals, Inc.(b)		172,222
	5,206	Zeltiq Aesthetics, Inc.(b)		159,824
				10,923,343
		Industrials—10.5%
	1,023	Allegiant Travel Co.		157,297
	1,000	AMERCO		322,040
	3,542	American Woodmark Corp.(b)		179,580
	4,631	Apogee Enterprises, Inc.		243,683
	7,099	ArcBest Corp.		253,434
	6,460	Astronics Corp.(b)		434,823
	4,035	Avis Budget Group, Inc.(b)		218,455
	7,920	H&E Equipment Services, Inc.		195,782
	10,442	JetBlue Airways Corp.(b)		214,374
	3,298	Middleby Corp. (The)(b)		334,219
	3,305	Multi-Color Corp.		207,488
	2,887	Old Dominion Freight Line, Inc.(b)		205,352
	2,864	Spirit Airlines, Inc.(b)		196,098
				3,162,625
		Information Technology—21.9%
	2,702	Ambarella, Inc.(b)		197,651
	7,309	Apple, Inc.		914,721
	2,102	Avago Technologies Ltd. (Singapore)		245,682
	3,738	comScore, Inc.(b)		195,722
	983	CoStar Group, Inc.(b)		200,955
	6,032	Ebix, Inc.		164,613
	3,896	Electronic Arts, Inc.(b)		226,319
	2,446	Facebook, Inc., Class A(b)		192,671
	8,898	Integrated Device Technology, Inc.(b)		161,855
	4,361	Intuit, Inc.		437,539
	3,145	LogMeIn, Inc.(b)		201,846
	8,091	Manhattan Associates, Inc.(b)		425,263
	3,573	Monolithic Power Systems, Inc.		185,189
	3,430	NXP Semiconductors NV (Netherlands)(b)		329,692
	23,922	PDF Solutions, Inc.(b)		432,270
	4,194	Proofpoint, Inc.(b)		226,392
	4,613	Qualys, Inc.(b)		228,436
	5,541	Skyworks Solutions, Inc.		511,157
	3,850	SPS Commerce, Inc.(b)		251,251
	2,878	SS&C Technologies Holdings, Inc.		173,169
	5,560	Super Micro Computer, Inc.(b)		159,961
	2,132	Synaptics, Inc.(b)		180,623
	4,327	Virtusa Corp.(b)		172,215
	1,783	Western Digital Corp.		174,270
				6,589,462

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

14

PowerShares DWA NASDAQ Momentum Portfolio (DWAQ) (continued)

April 30, 2015

Number of Shares			Value
		Common Stocks (continued)
		Telecommunication Services—0.7%
	1,842	SBA Communications Corp., Class A(b)	$	213,341
		Total Common Stocks (Cost $26,586,076)		30,033,015
		Money Market Fund—0.3%
	75,896	Invesco Premier Portfolio—Institutional Class(c) (Cost $75,896)		75,896
		Total Investments (Cost $26,661,972)—100.3%		30,108,911
		Other assets less liabilities—(0.3)%		(85,713	)
		Net Assets—100.0%	$	30,023,198

Notes to Schedule of Investments:

^(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.

^(b)  Non-income producing security.

^(c)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

15

Schedule of Investments^(a)

PowerShares Dynamic Market Portfolio (PWC)

April 30, 2015

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—13.5%
	57,257	1-800-FLOWERS.COM, Inc., Class A(b)	$	605,206
	28,674	American Axle & Manufacturing Holdings, Inc.(b)		714,843
	12,018	Brinker International, Inc.		665,437
	18,774	Cooper Tire & Rubber Co.		797,707
	62,082	Denny’s Corp.(b)		646,274
	52,313	Dollar Tree, Inc.(b)		3,997,236
	724	Graham Holdings Co., Class B		740,601
	56,260	Lowe’s Cos., Inc.		3,874,064
	10,065	Murphy USA, Inc.(b)		657,546
	43,865	Penn National Gaming, Inc.(b)		705,349
	20,658	ServiceMaster Global Holdings, Inc.(b)		713,940
	89,175	Starbucks Corp.		4,421,297
	21,497	Starz, Class A(b)		845,477
	19,666	Whirlpool Corp.		3,453,350
				22,838,327
		Consumer Staples—9.0%
	9,615	Bunge Ltd.		830,447
	52,995	CVS Health Corp.		5,261,873
	22,333	Fresh Del Monte Produce, Inc.		824,758
	18,186	Ingles Markets, Inc., Class A		761,266
	77,366	Kroger Co. (The)		5,331,291
	28,667	Pilgrim’s Pride Corp.		708,075
	196	Seaboard Corp.(b)		705,600
	79,592	SUPERVALU, Inc.(b)		699,614
				15,122,924
		Energy—9.4%
	51,266	Cheniere Energy Partners LP Holdings LLC		1,297,030
	29,271	Dominion Midstream Partners LP(b)		1,195,720
	67,689	Rosetta Resources, Inc.(b)		1,545,340
	60,982	Tesoro Corp.		5,234,085
	74,403	Transocean Ltd.		1,400,265
	90,786	Valero Energy Corp.		5,165,723
				15,838,163
		Financials—14.5%
	11,472	AmTrust Financial Services, Inc.		682,240
	13,486	Aspen Insurance Holdings Ltd.		630,201
	23,316	Assured Guaranty Ltd.		605,983
	30,080	CME Group, Inc., Class A		2,734,573
	26,212	Employers Holdings, Inc.		639,835
	9,727	Endurance Specialty Holdings Ltd.		587,316
	3,485	Everest Re Group Ltd.		623,502
	29,900	Fidelity & Guaranty Life		669,162
	17,651	First American Financial Corp.		614,078
	78,583	FNF Group		2,828,202
	27,457	Investment Technology Group, Inc.(b)		782,250
	47,087	JPMorgan Chase & Co.		2,978,724
	50,061	Lincoln National Corp.		2,827,946
	12,327	NASDAQ OMX Group, Inc. (The)		599,462
	8,276	Navigators Group, Inc. (The)(b)		645,942
	36,394	St. Joe Co. (The)(b)		635,075
	26,857	Travelers Cos., Inc. (The)		2,715,511
	65,298	Voya Financial, Inc.		2,764,717
				24,564,719

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Health Care—14.3%
	40,700	AmerisourceBergen Corp.	$	4,652,010
	14,984	Anacor Pharmaceuticals, Inc.(b)		789,507
	28,558	Anthem, Inc.		4,310,259
	5,130	athenahealth, Inc.(b)		629,246
	10,605	Centene Corp.(b)		657,404
	5,595	Chemed Corp.		644,824
	34,385	Cigna Corp.		4,285,746
	31,441	Edwards Lifesciences Corp.(b)		3,982,003
	11,365	Health Net, Inc.(b)		598,367
	20,984	Inovalon Holdings, Inc., Class A(b)		529,846
	10,445	Lannett Co., Inc.(b)		600,587
	10,234	Molina Healthcare, Inc.(b)		606,160
	93,379	PDL BioPharma, Inc.		622,838
	16,912	Prestige Brands Holdings, Inc.(b)		663,796
	12,233	VCA, Inc.(b)		623,516
				24,196,109
		Industrials—10.9%
	11,280	Alaska Air Group, Inc.		722,597
	93,264	American Airlines Group, Inc.		4,503,252
	11,844	Avis Budget Group, Inc.(b)		641,234
	16,255	Con-way, Inc.		668,081
	41,767	JetBlue Airways Corp.(b)		857,477
	21,717	Knight Transportation, Inc.		627,621
	34,515	L-3 Communications Holdings, Inc.		3,966,119
	10,516	Multi-Color Corp.		660,194
	49,244	RPX Corp.(b)		766,237
	103,315	Southwest Airlines Co.		4,190,456
	14,590	Spirit AeroSystems Holdings, Inc., Class A(b)		742,485
				18,345,753
		Information Technology—19.6%
	37,270	Apple, Inc.		4,664,340
	20,543	Blackbaud, Inc.		1,038,038
	24,785	CDW Corp.		949,761
	76,573	Flextronics International Ltd.(b)		882,504
	137,419	Hewlett-Packard Co.		4,530,704
	45,188	Integrated Device Technology, Inc.(b)		821,970
	17,641	InterDigital, Inc.		965,316
	42,452	Jabil Circuit, Inc.		956,019
	58,291	Kulicke & Soffa Industries, Inc. (Singapore)(b)		880,777
	58,061	Lam Research Corp.		4,388,250
	34,788	OmniVision Technologies, Inc.(b)		970,411
	68,987	Qorvo, Inc.(b)		4,546,933
	41,087	Sanmina Corp.(b)		835,299
	17,057	Science Applications International Corp.		854,556
	54,560	Skyworks Solutions, Inc.		5,033,160
	23,281	Tessera Technologies, Inc.		840,677
				33,158,715
		Materials—3.8%
	33,919	Century Aluminum Co.(b)		437,216
	60,491	Eastman Chemical Co.		4,610,624
	45,092	Mercer International, Inc.(b)		644,816
	26,867	United States Steel Corp.		645,345
				6,338,001

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

16

PowerShares Dynamic Market Portfolio (PWC) (continued)

April 30, 2015

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Telecommunication Services—2.1%
	33,212	CenturyLink, Inc.	$	1,194,303
	37,501	Iridium Communications, Inc.(b)		381,385
	14,122	Telephone & Data Systems, Inc.		377,199
	38,069	T-Mobile US, Inc.(b)		1,295,869
	79,133	Vonage Holdings Corp.(b)		366,386
				3,615,142
		Utilities—2.9%
	45,689	Duke Energy Corp.		3,544,096
	30,336	Empire District Electric Co. (The)		715,019
	13,504	SCANA Corp.		715,442
				4,974,557
		Total Common Stocks and Other Equity Interests (Cost $163,323,403)		168,992,410
		Money Market Fund—0.1%
	102,293	Invesco Premier Portfolio—Institutional Class(c) (Cost $102,293)		102,293
		Total Investments (Cost $163,425,696)—100.1%		169,094,703
		Other assets less liabilities—(0.1)%		(144,494	)
		Net Assets—100.0%	$	168,950,209

Notes to Schedule of Investments:

^(a) Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.

^(b) Non-income producing security.

^(c) The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

17

Schedule of Investments^(a)

PowerShares FTSE RAFI US 1000 Portfolio (PRF)

April 30, 2015

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—11.4%
	25,255	Aaron’s, Inc.	$	858,670
	45,574	Abercrombie & Fitch Co., Class A		1,024,504
	9,055	Advance Auto Parts, Inc.		1,294,865
	22,768	Amazon.com, Inc.(b)		9,603,087
	90,853	American Eagle Outfitters, Inc.		1,445,471
	15,953	ANN INC.(b)		603,981
	53,743	Apollo Education Group, Inc., Class A(b)		902,076
	54,291	Aramark		1,668,362
	9,253	Asbury Automotive Group, Inc.(b)		777,530
	59,169	Ascena Retail Group, Inc.(b)		886,943
	21,609	Autoliv, Inc. (Sweden)		2,565,420
	30,103	AutoNation, Inc.(b)		1,852,840
	3,965	AutoZone, Inc.(b)		2,667,097
	29,747	Barnes & Noble, Inc.(b)		651,459
	45,594	Bed Bath & Beyond, Inc.(b)		3,212,553
	157,946	Best Buy Co., Inc.		5,472,829
	25,215	Big Lots, Inc.		1,149,048
	28,294	Bloomin’ Brands, Inc.		641,142
	28,568	BorgWarner, Inc.		1,691,226
	11,839	Brinker International, Inc.		655,525
	11,588	Brunswick Corp.		579,864
	20,333	Burlington Stores, Inc.(b)		1,048,573
	11,896	Cabela’s, Inc.(b)		627,395
	79,065	Cablevision Systems Corp., Class A		1,579,719
	61,497	Caesars Entertainment Corp.(b)(c)		583,607
	39,644	CarMax, Inc.(b)		2,700,153
	119,460	Carnival Corp.		5,252,656
	87,738	CBS Corp., Class B		5,451,162
	12,629	Charter Communications, Inc., Class A(b)		2,362,381
	32,218	Chico’s FAS, Inc.		543,195
	1,497	Chipotle Mexican Grill, Inc.(b)		930,146
	23,381	Cinemark Holdings, Inc.		996,732
	58,448	Coach, Inc.		2,233,298
	426,794	Comcast Corp., Class A		24,651,621
	82,561	Comcast Corp., Special Class A		4,754,688
	23,539	Cooper Tire & Rubber Co.		1,000,172
	36,808	CST Brands, Inc.		1,535,262
	46,129	D.R. Horton, Inc.		1,171,677
	55,104	Dana Holding Corp.		1,188,593
	39,180	Darden Restaurants, Inc.		2,498,509
	37,296	Delphi Automotive PLC (United Kingdom)		3,095,568
	16,061	DeVry Education Group, Inc.		485,685
	17,933	Dick’s Sporting Goods, Inc.		973,045
	8,312	Dillard’s, Inc., Class A		1,093,776
	109,379	DIRECTV(b)		9,921,222
	23,520	Discovery Communications, Inc., Class A(b)		761,107
	44,945	Discovery Communications, Inc., Class C(b)		1,358,687
	29,378	DISH Network Corp., Class A(b)		1,987,715
	46,792	Dollar General Corp.		3,402,246
	24,865	Dollar Tree, Inc.(b)		1,899,935
	16,008	DSW, Inc., Class A		580,610
	10,483	Expedia, Inc., Class A		987,813
	20,871	Family Dollar Stores, Inc.		1,630,860
	30,314	Foot Locker, Inc.		1,802,167
	1,649,995	Ford Motor Co.		26,069,921
	9,902	Fossil Group, Inc.(b)		831,570

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Discretionary (continued)
	50,513	GameStop Corp., Class A(c)	$	1,946,771
	57,234	Gannett Co., Inc.		1,964,271
	64,037	Gap, Inc. (The)		2,538,427
	27,609	Garmin Ltd.		1,247,651
	618,191	General Motors Co.		21,673,776
	8,726	Genesco, Inc.(b)		589,790
	41,230	Gentex Corp.		715,340
	36,369	Genuine Parts Co.		3,267,755
	13,474	GNC Holdings, Inc., Class A		580,056
	114,709	Goodyear Tire & Rubber Co. (The)		3,253,721
	1,379	Graham Holdings Co., Class B		1,410,620
	11,566	Group 1 Automotive, Inc.		913,483
	48,982	Guess?, Inc.		896,860
	52,481	H&R Block, Inc.		1,587,025
	32,739	Hanesbrands, Inc.		1,017,528
	34,066	Harley-Davidson, Inc.		1,914,850
	5,890	Harman International Industries, Inc.		767,938
	25,597	Hasbro, Inc.		1,812,012
	51,113	Hilton Worldwide Holdings, Inc.(b)		1,480,232
	191,708	Home Depot, Inc. (The)		20,508,922
	63,271	International Game Technology PLC (United Kingdom)(b)		1,288,198
	79,363	Interpublic Group of Cos., Inc. (The)		1,653,925
	306,579	J.C. Penney Co., Inc.(b)(c)		2,544,606
	26,998	Jarden Corp.(b)		1,381,758
	172,697	Johnson Controls, Inc.		8,700,475
	66,771	Kohl’s Corp.		4,784,142
	47,072	L Brands, Inc.		4,206,354
	59,978	Las Vegas Sands Corp.		3,171,637
	23,553	Lear Corp.		2,615,090
	32,376	Leggett & Platt, Inc.		1,375,009
	21,906	Lennar Corp., Class A		1,003,295
	38,093	Liberty Global PLC, Series A (United Kingdom)(b)		1,986,169
	103,211	Liberty Global PLC, Series C (United Kingdom)(b)		5,206,995
	110,220	Liberty Interactive Corp., Class A(b)		3,169,927
	23,552	Liberty Media Corp., Class A(b)		903,926
	47,501	Liberty Media Corp., Class C(b)		1,802,663
	43,560	Live Nation Entertainment, Inc.(b)		1,091,614
	43,537	LKQ Corp.(b)		1,178,547
	174,006	Lowe’s Cos., Inc.		11,982,053
	100,913	Macy’s, Inc.		6,522,007
	20,118	Marriott International, Inc., Class A		1,610,446
	128,010	Mattel, Inc.		3,604,762
	228,180	McDonald’s Corp.		22,030,779
	11,997	Men’s Wearhouse, Inc. (The)		678,910
	103,545	MGM Resorts International(b)		2,189,977
	13,576	Michael Kors Holdings Ltd.(b)		839,811
	10,237	Mohawk Industries, Inc.(b)		1,776,119
	37,547	Murphy USA, Inc.(b)		2,452,946
	1,829	Netflix, Inc.(b)		1,017,838
	43,759	Newell Rubbermaid, Inc.		1,668,531
	143,139	News Corp., Class A(b)		2,258,733
	40,180	News Corp., Class B(b)		625,603
	60,588	NIKE, Inc., Class B		5,988,518

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

18

PowerShares FTSE RAFI US 1000 Portfolio (PRF) (continued)

April 30, 2015

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Discretionary (continued)
	29,664	Nordstrom, Inc.	$	2,241,412
	664	NVR, Inc.(b)		880,789
	215,572	Office Depot, Inc.(b)		1,987,574
	57,384	Omnicom Group, Inc.		4,347,412
	9,855	O’Reilly Automotive, Inc.(b)		2,146,715
	9,761	Outerwall, Inc.		648,423
	3,961	Panera Bread Co., Class A(b)		722,803
	18,419	Penske Automotive Group, Inc.		899,031
	5,476	Polaris Industries, Inc.		749,993
	2,666	Priceline Group, Inc. (The)(b)		3,300,001
	44,465	PulteGroup, Inc.		858,174
	13,951	PVH Corp.		1,441,836
	11,918	Ralph Lauren Corp., Class A		1,589,980
	29,471	Regal Entertainment Group, Class A(c)		648,362
	41,728	Rent-A-Center, Inc.		1,235,149
	23,979	Ross Stores, Inc.		2,371,044
	29,274	Royal Caribbean Cruises Ltd.		1,992,388
	23,972	Sally Beauty Holdings, Inc.(b)		748,166
	10,436	Scripps Networks Interactive, Inc., Class A		729,059
	58,463	Sears Holdings Corp.(b)(c)		2,335,012
	36,434	SeaWorld Entertainment, Inc.		772,401
	37,513	Service Corp. International		1,038,360
	10,101	Signet Jewelers Ltd.		1,354,847
	194,643	Sirius XM Holdings, Inc.(b)		768,840
	12,744	Six Flags Entertainment Corp.		599,223
	29,362	Sonic Automotive, Inc., Class A		685,603
	338,098	Staples, Inc.		5,517,759
	99,082	Starbucks Corp.		4,912,486
	27,550	Starwood Hotels & Resorts Worldwide, Inc.		2,367,923
	224,175	Target Corp.		17,671,715
	25,220	Tenneco, Inc.(b)		1,474,109
	17,820	Tiffany & Co.		1,558,894
	122,473	Time Warner Cable, Inc.		19,047,001
	226,974	Time Warner, Inc.		19,158,875
	76,264	Time, Inc.		1,741,107
	90,849	TJX Cos., Inc. (The)		5,863,394
	22,673	Toll Brothers, Inc.(b)		805,798
	8,835	Tractor Supply Co.		760,340
	39,584	TRW Automotive Holdings Corp.(b)		4,158,695
	10,505	Tupperware Brands Corp.		702,364
	150,510	Twenty-First Century Fox, Inc., Class A		5,129,381
	47,234	Twenty-First Century Fox, Inc., Class B		1,575,254
	21,248	Urban Outfitters, Inc.(b)		850,770
	40,947	VF Corp.		2,965,791
	73,378	Viacom, Inc., Class B		5,096,102
	19,650	Visteon Corp.(b)		1,992,510
	196,171	Walt Disney Co. (The)		21,327,711
	64,284	Wendy’s Co. (The)		650,554
	19,424	Whirlpool Corp.		3,410,854
	11,451	Williams-Sonoma, Inc.		841,992
	18,405	Wyndham Worldwide Corp.		1,571,787
	23,060	Wynn Resorts Ltd.		2,561,274
	66,213	Yum! Brands, Inc.		5,691,669
				518,093,055

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Staples—9.3%
	349,704	Altria Group, Inc.	$	17,502,685
	15,001	Andersons, Inc. (The)		640,393
	306,730	Archer-Daniels-Midland Co.		14,992,962
	367,603	Avon Products, Inc.		3,003,317
	17,855	Brown-Forman Corp., Class B		1,611,057
	102,743	Bunge Ltd.		8,873,913
	41,397	Campbell Soup Co.		1,850,860
	11,570	Casey’s General Stores, Inc.		950,823
	15,937	Church & Dwight Co., Inc.		1,293,606
	22,426	Clorox Co. (The)		2,379,399
	761,378	Coca-Cola Co. (The)		30,881,492
	54,381	Coca-Cola Enterprises, Inc.		2,415,060
	131,502	Colgate-Palmolive Co.		8,847,455
	138,589	ConAgra Foods, Inc.		5,009,992
	16,766	Constellation Brands, Inc., Class A(b)		1,943,850
	112,921	Costco Wholesale Corp.		16,153,349
	244,883	CVS Health Corp.		24,314,433
	44,608	Darling Ingredients, Inc.(b)		609,345
	59,596	Dean Foods Co.		968,435
	33,385	Dr Pepper Snapple Group, Inc.		2,489,853
	10,563	Energizer Holdings, Inc.		1,443,117
	21,419	Estee Lauder Cos., Inc. (The), Class A		1,741,151
	37,404	Flowers Foods, Inc.		835,605
	149,885	General Mills, Inc.		8,294,636
	34,377	Herbalife Ltd.(b)(c)		1,427,333
	19,696	Hershey Co. (The)		1,810,456
	21,146	Hormel Foods Corp.		1,149,285
	17,611	Ingredion, Inc.		1,398,313
	23,758	J.M. Smucker Co. (The)		2,754,027
	61,216	Kellogg Co.		3,876,809
	8,231	Keurig Green Mountain, Inc.		957,841
	82,341	Kimberly-Clark Corp.		9,031,984
	95,393	Kraft Foods Group, Inc.		8,084,557
	174,075	Kroger Co. (The)		11,995,508
	64,763	Lorillard, Inc.		4,524,343
	20,105	McCormick & Co., Inc.		1,513,907
	16,947	Mead Johnson Nutrition Co.		1,625,556
	30,480	Molson Coors Brewing Co., Class B		2,240,585
	431,308	Mondelez International, Inc., Class A		16,549,288
	5,573	Monster Beverage Corp.(b)		764,114
	11,159	Nu Skin Enterprises, Inc., Class A(c)		631,041
	296,246	PepsiCo, Inc.		28,178,920
	375,965	Philip Morris International, Inc.		31,381,799
	16,376	Pinnacle Foods, Inc.		664,047
	604,349	Procter & Gamble Co. (The)		48,051,789
	61,743	Reynolds American, Inc.		4,525,762
	379,419	Rite Aid Corp.(b)		2,925,321
	262,907	SUPERVALU, Inc.(b)		2,310,953
	220,247	Sysco Corp.		8,155,746
	8,755	TreeHouse Foods, Inc.(b)		711,431
	106,739	Tyson Foods, Inc., Class A		4,216,191
	10,705	United Natural Foods, Inc.(b)		722,159
	16,671	Universal Corp.		784,037
	165,124	Walgreens Boots Alliance, Inc.		13,693,733
	584,404	Wal-Mart Stores, Inc.		45,612,732
	16,035	WhiteWave Foods Co. (The)(b)		705,059

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

19

PowerShares FTSE RAFI US 1000 Portfolio (PRF) (continued)

April 30, 2015

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Staples (continued)
	49,931	Whole Foods Market, Inc.	$	2,384,705
				424,406,119
		Energy—12.6%
	1,114,653	Alpha Natural Resources, Inc.(b)(c)		902,869
	100,391	Anadarko Petroleum Corp.		9,446,793
	180,125	Apache Corp.		12,320,550
	809,949	Arch Coal, Inc.(b)(c)		789,052
	25,584	Atwood Oceanics, Inc.		853,994
	117,095	Baker Hughes, Inc.		8,016,324
	49,807	Bill Barrett Corp.(b)		577,761
	31,645	Cabot Oil & Gas Corp.		1,070,234
	524,478	California Resources Corp.		4,877,645
	65,530	Cameron International Corp.(b)		3,592,355
	239,401	Chesapeake Energy Corp.(c)		3,775,354
	874,967	Chevron Corp.		97,173,835
	12,272	Cimarex Energy Co.		1,526,637
	81,261	Cloud Peak Energy, Inc.(b)		527,384
	13,362	Concho Resources, Inc.(b)		1,692,431
	567,485	ConocoPhillips		38,543,581
	67,466	CONSOL Energy, Inc.		2,191,296
	113,565	Cosan Ltd., Class A (Brazil)		824,482
	28,757	Delek US Holdings, Inc.		1,061,708
	250,354	Denbury Resources, Inc.		2,205,619
	117,865	Devon Energy Corp.		8,039,572
	69,017	Diamond Offshore Drilling, Inc.(c)		2,309,999
	11,361	Dresser-Rand Group, Inc.(b)		939,214
	18,044	Energen Corp.		1,284,191
	139,882	Energy XXI Ltd.(c)		611,284
	147,838	Ensco PLC, Class A		4,033,021
	66,801	EOG Resources, Inc.		6,609,959
	20,608	EQT Corp.		1,853,484
	28,026	Exterran Holdings, Inc.		1,038,924
	1,555,336	Exxon Mobil Corp.		135,889,706
	44,736	FMC Technologies, Inc.(b)		1,972,858
	21,932	Golar LNG Ltd. (Bermuda)		789,442
	205,227	Halliburton Co.		10,045,862
	37,065	Helix Energy Solutions Group, Inc.(b)		610,831
	24,717	Helmerich & Payne, Inc.		1,927,184
	133,223	Hess Corp.		10,244,849
	106,126	HollyFrontier Corp.		4,115,566
	332,224	Key Energy Services, Inc.(b)		810,627
	183,124	Kinder Morgan, Inc.		7,865,176
	363,742	Marathon Oil Corp.		11,312,376
	112,192	Marathon Petroleum Corp.		11,058,765
	320,870	McDermott International, Inc.(b)		1,684,567
	97,287	Murphy Oil Corp.		4,631,834
	181,706	Nabors Industries Ltd.		3,034,490
	139,423	National Oilwell Varco, Inc.		7,586,005
	54,007	Newfield Exploration Co.(b)		2,119,235
	153,474	Noble Corp. PLC(c)		2,656,635
	71,699	Noble Energy, Inc.		3,636,573
	257,418	Occidental Petroleum Corp.		20,619,182
	18,863	Oceaneering International, Inc.		1,039,540
	19,431	Oil States International, Inc.(b)		924,721
	64,156	ONEOK, Inc.		3,085,904
	258,169	Paragon Offshore PLC(c)		467,286

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Energy (continued)
	68,313	Patterson-UTI Energy, Inc.	$	1,526,796
	41,898	PBF Energy, Inc., Class A		1,189,065
	338,106	Peabody Energy Corp.(c)		1,599,241
	266,093	Phillips 66		21,103,836
	12,843	Pioneer Natural Resources Co.		2,219,014
	69,151	QEP Resources, Inc.		1,555,897
	19,544	Range Resources Corp.		1,242,217
	67,976	Rowan Cos. PLC, Class A		1,440,411
	309,769	SandRidge Energy, Inc.(b)(c)		585,463
	239,831	Schlumberger Ltd.		22,690,411
	9,675	SEACOR Holdings, Inc.(b)		702,985
	143,974	Seventy Seven Energy, Inc.(b)		729,948
	17,878	SM Energy Co.		1,036,388
	68,675	Southwestern Energy Co.(b)		1,924,960
	168,574	Spectra Energy Corp.		6,279,381
	37,227	Stone Energy Corp.(b)		635,465
	77,344	Superior Energy Services, Inc.		1,972,272
	7,499	Targa Resources Corp.		787,170
	13,348	Teekay Corp. (Bermuda)		663,529
	44,789	Tesoro Corp.		3,844,240
	29,676	Tidewater, Inc.(c)		821,728
	27,015	Unit Corp.(b)		941,203
	275,335	Valero Energy Corp.		15,666,562
	406,601	Weatherford International PLC(b)		5,916,045
	24,412	Western Refining, Inc.		1,075,349
	47,361	Whiting Petroleum Corp.(b)		1,795,456
	100,634	Williams Cos., Inc. (The)		5,151,454
	53,822	World Fuel Services Corp.		2,987,121
	132,564	WPX Energy, Inc.(b)		1,822,755
				576,725,128
		Financials—21.2%
	92,347	ACE Ltd.		9,880,206
	5,135	Affiliated Managers Group, Inc.(b)		1,161,178
	144,407	Aflac, Inc.		9,103,417
	12,437	Alexandria Real Estate Equities, Inc. REIT		1,148,930
	3,643	Alleghany Corp.(b)		1,725,033
	31,672	Allied World Assurance Co. Holdings AG		1,302,986
	138,258	Allstate Corp. (The)		9,631,052
	362,990	Ally Financial, Inc.(b)		7,945,851
	32,707	Ambac Financial Group, Inc.(b)		752,588
	21,666	American Campus Communities, Inc. REIT		869,673
	140,766	American Capital Agency Corp. REIT		2,904,706
	22,361	American Equity Investment Life Holding Co.		602,629
	171,621	American Express Co.		13,292,046
	29,491	American Financial Group, Inc.		1,863,831
	617,668	American International Group, Inc.		34,768,532
	23,670	American Tower Corp. REIT		2,237,525
	31,679	Ameriprise Financial, Inc.		3,968,745
	569,377	Annaly Capital Management, Inc. REIT		5,733,626
	42,107	Aon PLC		4,051,957
	16,788	Apartment Investment & Management Co., Class A REIT		633,411
	33,687	Arch Capital Group Ltd.(b)		2,044,127
	29,290	Arthur J. Gallagher & Co.		1,400,941
	22,407	Aspen Insurance Holdings Ltd.		1,047,079

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

20

PowerShares FTSE RAFI US 1000 Portfolio (PRF) (continued)

April 30, 2015

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	46,546	Associated Banc-Corp.	$	875,530
	40,882	Assurant, Inc.		2,512,608
	48,625	Assured Guaranty Ltd.		1,263,764
	16,675	AvalonBay Communities, Inc. REIT		2,740,370
	36,238	Axis Capital Holdings Ltd.		1,886,550
	4,022,000	Bank of America Corp.		64,070,460
	11,634	Bank of Hawaii Corp.		702,577
	290,530	Bank of New York Mellon Corp. (The)		12,301,040
	22,083	BankUnited, Inc.		725,647
	231,351	BB&T Corp.		8,858,430
	445,023	Berkshire Hathaway, Inc., Class B(b)		62,841,698
	45,077	BioMed Realty Trust, Inc. REIT		935,348
	20,715	BlackRock, Inc.		7,539,017
	21,170	Boston Properties, Inc. REIT		2,801,003
	47,228	Brandywine Realty Trust REIT		688,584
	23,652	Brixmor Property Group, Inc. REIT		554,639
	21,658	Brown & Brown, Inc.		691,973
	16,603	Camden Property Trust REIT		1,246,553
	170,912	Capital One Financial Corp.		13,818,235
	64,134	Capitol Federal Financial, Inc.		769,608
	43,787	CBL & Associates Properties, Inc. REIT		788,604
	41,180	CBRE Group, Inc., Class A(b)		1,578,841
	116,789	Charles Schwab Corp. (The)		3,562,065
	71,332	Chimera Investment Corp. REIT		1,083,533
	74,186	Chubb Corp. (The)		7,296,193
	45,270	Cincinnati Financial Corp.		2,292,473
	70,617	CIT Group, Inc.		3,179,884
	1,180,575	Citigroup, Inc.		62,948,259
	55,373	Citizens Financial Group, Inc.		1,442,467
	8,643	City National Corp.		805,528
	73,133	CME Group, Inc., Class A		6,648,521
	92,226	CNO Financial Group, Inc.		1,567,842
	48,070	Columbia Property Trust, Inc. REIT		1,260,876
	49,578	Comerica, Inc.		2,350,493
	25,772	Commerce Bancshares, Inc.		1,100,722
	99,319	Communications Sales & Leasing, Inc. REIT(b)		2,987,516
	23,170	Corporate Office Properties Trust REIT		611,456
	34,113	Corrections Corp. of America REIT		1,255,017
	29,973	Crown Castle International Corp. REIT		2,503,645
	14,093	Cullen/Frost Bankers, Inc.		1,027,943
	16,099	DCT Industrial Trust, Inc. REIT		531,911
	47,578	DDR Corp. REIT		811,205
	40,407	DiamondRock Hospitality Co. REIT		547,919
	27,166	Digital Realty Trust, Inc. REIT		1,722,596
	94,518	Discover Financial Services		5,479,208
	24,026	Douglas Emmett, Inc. REIT		684,741
	61,552	Duke Realty Corp. REIT		1,219,345
	72,402	E*TRADE Financial Corp.(b)		2,084,454
	22,324	East West Bancorp, Inc.		906,131
	20,055	Eaton Vance Corp.		823,859
	14,719	Endurance Specialty Holdings Ltd.		888,733
	10,902	EPR Properties REIT		628,718
	50,088	Equity Commonwealth REIT(b)		1,262,719
	52,344	Equity Residential REIT		3,866,128
	4,476	Essex Property Trust, Inc. REIT		993,448

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	14,016	Everest Re Group Ltd.	$	2,507,603
	9,534	Extra Space Storage, Inc. REIT		628,577
	48,656	F.N.B. Corp.		645,665
	7,679	Federal Realty Investment Trust REIT		1,026,452
	24,933	Federated Investors, Inc., Class B		857,695
	298,778	Fifth Third Bancorp		5,975,560
	33,013	First American Financial Corp.		1,148,522
	48,760	First Horizon National Corp.		694,830
	168,517	First Niagara Financial Group, Inc.		1,532,662
	17,439	First Republic Bank		1,016,519
	50,658	FirstMerit Corp.		981,245
	64,581	FNF Group		2,324,270
	72,157	Franklin Resources, Inc.		3,720,415
	63,339	Fulton Financial Corp.		770,202
	67,552	General Growth Properties, Inc. REIT		1,850,925
	682,311	Genworth Financial, Inc., Class A(b)		5,997,514
	14,040	Geo Group, Inc. (The) REIT		547,560
	135,730	Goldman Sachs Group, Inc. (The)		26,660,087
	28,118	Hancock Holding Co.		818,515
	16,053	Hanover Insurance Group, Inc. (The)		1,100,754
	207,671	Hartford Financial Services Group, Inc. (The)		8,466,747
	46,556	Hatteras Financial Corp. REIT		840,801
	24,009	HCC Insurance Holdings, Inc.		1,367,553
	95,909	HCP, Inc. REIT		3,864,174
	47,947	Health Care REIT, Inc. REIT		3,453,143
	20,990	Healthcare Realty Trust, Inc. REIT		537,344
	18,838	Highwoods Properties, Inc. REIT		810,788
	12,669	Home Properties, Inc. REIT		931,932
	49,370	Hospitality Properties Trust REIT		1,485,050
	125,112	Host Hotels & Resorts, Inc. REIT		2,519,756
	176,586	Hudson City Bancorp, Inc.		1,642,250
	184,186	Huntington Bancshares, Inc.		2,000,260
	10,603	IntercontinentalExchange, Inc.		2,380,692
	81,758	Invesco Ltd.(d)		3,386,416
	58,371	Invesco Mortgage Capital, Inc. REIT(d)		898,913
	50,198	Iron Mountain, Inc. REIT		1,731,329
	5,904	Jones Lang LaSalle, Inc.		980,418
	1,357,767	JPMorgan Chase & Co.		85,892,340
	19,999	Kemper Corp.		753,362
	245,575	KeyCorp		3,548,559
	10,723	Kilroy Realty Corp. REIT		761,226
	68,431	Kimco Realty Corp. REIT		1,649,187
	11,141	Lamar Advertising Co., Class A REIT		645,732
	14,631	LaSalle Hotel Properties REIT		536,811
	20,820	Legg Mason, Inc.		1,096,173
	95,453	Leucadia National Corp.		2,268,918
	60,354	Lexington Realty Trust REIT		559,482
	38,012	Liberty Property Trust REIT		1,324,338
	70,437	Lincoln National Corp.		3,978,986
	129,422	Loews Corp.		5,389,132
	16,815	LPL Financial Holdings, Inc.(c)		680,503
	32,236	M&T Bank Corp.		3,857,682
	20,508	Macerich Co. (The) REIT		1,676,734
	52,663	Mack-Cali Realty Corp. REIT		945,301
	2,626	Markel Corp.(b)		1,944,921

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

21

PowerShares FTSE RAFI US 1000 Portfolio (PRF) (continued)

April 30, 2015

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	93,393	Marsh & McLennan Cos., Inc.	$	5,244,951
	93,419	MBIA, Inc.(b)		817,416
	32,496	McGraw Hill Financial, Inc.		3,389,333
	11,702	Mercury General Corp.		642,908
	339,967	MetLife, Inc.		17,436,907
	143,946	MFA Financial, Inc. REIT		1,118,460
	13,311	Mid-America Apartment Communities, Inc. REIT		993,134
	15,159	Moody’s Corp.		1,629,896
	345,509	Morgan Stanley		12,890,941
	12,563	MSCI, Inc.		768,730
	32,003	NASDAQ OMX Group, Inc. (The)		1,556,306
	19,865	National Retail Properties, Inc. REIT		762,816
	47,600	New Residential Investment Corp. REIT		811,104
	190,787	New York Community Bancorp, Inc.		3,279,629
	51,533	Northern Trust Corp.		3,769,639
	37,209	NorthStar Realty Finance Corp. REIT		698,041
	68,406	Ocwen Financial Corp.(b)(c)		580,767
	108,504	Old Republic International Corp.		1,659,026
	16,597	OMEGA Healthcare Investors, Inc. REIT		598,986
	35,401	Outfront Media, Inc. REIT		1,016,717
	22,747	PartnerRe Ltd.		2,911,616
	28,561	PennyMac Mortgage Investment Trust REIT		598,353
	126,318	People’s United Financial, Inc.		1,908,665
	72,408	PHH Corp.(b)		1,818,889
	64,642	Piedmont Office Realty Trust, Inc., Class A REIT		1,129,942
	40,028	Plum Creek Timber Co., Inc. REIT		1,689,182
	158,163	PNC Financial Services Group, Inc. (The)		14,508,292
	44,251	Popular, Inc.(b)		1,435,060
	12,560	Primerica, Inc.		580,523
	77,975	Principal Financial Group, Inc.		3,986,082
	18,850	ProAssurance Corp.		847,308
	207,844	Progressive Corp. (The)		5,541,121
	86,281	Prologis, Inc. REIT		3,468,496
	14,041	Prosperity Bancshares, Inc.		748,947
	188,145	Prudential Financial, Inc.		15,352,632
	15,025	Public Storage REIT		2,823,348
	21,427	Raymond James Financial, Inc.		1,211,268
	40,562	Rayonier, Inc. REIT		1,037,982
	30,798	Realogy Holdings Corp.(b)		1,460,133
	27,951	Realty Income Corp. REIT(c)		1,312,859
	14,412	Regency Centers Corp. REIT		904,785
	505,018	Regions Financial Corp.		4,964,327
	28,412	Reinsurance Group of America, Inc.		2,603,107
	11,927	RenaissanceRe Holdings Ltd.		1,222,398
	62,054	Retail Properties of America, Inc., Class A REIT		937,636
	12,670	RLI Corp.		629,192
	22,406	RLJ Lodging Trust REIT		664,786
	10,438	Ryman Hospitality Properties, Inc. REIT		601,646
	40,889	Santander Consumer USA Holdings, Inc.		1,009,549
	52,926	Senior Housing Properties Trust REIT		1,083,395
	5,581	Signature Bank(b)		748,356
	33,092	Simon Property Group, Inc. REIT		6,005,867

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	12,305	SL Green Realty Corp. REIT	$	1,505,640
	378,231	SLM Corp.(b)		3,854,174
	53,332	Spirit Realty Capital, Inc. REIT		602,118
	15,762	StanCorp Financial Group, Inc.		1,136,125
	48,740	Starwood Property Trust, Inc. REIT		1,170,247
	87,609	State Street Corp.		6,756,406
	13,708	Stifel Financial Corp.(b)		724,331
	165,310	SunTrust Banks, Inc.		6,860,365
	55,113	Susquehanna Bancshares, Inc.		740,719
	7,123	SVB Financial Group(b)		945,650
	41,756	Symetra Financial Corp.		991,705
	35,495	Synchrony Financial(b)(c)		1,105,669
	32,849	Synovus Financial Corp.		908,603
	37,656	T. Rowe Price Group, Inc.		3,056,914
	8,228	Taubman Centers, Inc. REIT		592,498
	46,303	TCF Financial Corp.		725,105
	24,640	TD Ameritrade Holding Corp.		893,200
	33,546	Torchmark Corp.		1,882,266
	137,379	Travelers Cos., Inc. (The)		13,890,391
	96,020	Two Harbors Investment Corp. REIT		1,008,210
	392,239	U.S. Bancorp		16,815,286
	40,795	UDR, Inc. REIT		1,336,852
	109,601	Unum Group		3,743,970
	32,729	Validus Holdings Ltd.		1,369,054
	93,592	Valley National Bancorp		882,573
	53,190	Ventas, Inc. REIT		3,664,791
	29,919	Vornado Realty Trust REIT		3,096,317
	70,409	Voya Financial, Inc.		2,981,117
	31,945	W.R. Berkley Corp.		1,564,986
	14,590	Waddell & Reed Financial, Inc., Class A		719,579
	31,358	Washington Federal, Inc.		677,333
	19,817	Webster Financial Corp.		710,043
	21,494	Weingarten Realty Investors REIT		704,143
	1,267,930	Wells Fargo & Co.		69,862,943
	173,544	Weyerhaeuser Co. REIT		5,468,371
	39,225	Willis Group Holdings PLC		1,907,512
	9,310	WP Carey, Inc. REIT		590,999
	90,685	XL Group PLC		3,362,600
	60,771	Zions Bancorporation		1,721,946
				966,191,421
		Health Care—10.2%
	268,908	Abbott Laboratories		12,482,709
	143,865	AbbVie, Inc.		9,302,311
	14,688	Actavis PLC(b)		4,154,648
	87,462	Aetna, Inc.		9,347,064
	38,805	Agilent Technologies, Inc.		1,605,363
	15,087	Alere, Inc.(b)		716,331
	4,639	Alexion Pharmaceuticals, Inc.(b)		785,058
	80,417	Allscripts Healthcare Solutions, Inc.(b)		1,069,546
	95,283	AmerisourceBergen Corp.		10,890,847
	73,050	Amgen, Inc.		11,535,326
	101,789	Anthem, Inc.		15,363,014
	115,400	Baxter International, Inc.		7,932,596
	28,854	Becton, Dickinson and Co.		4,064,663
	10,471	Biogen, Inc.(b)		3,915,421
	5,304	Bio-Rad Laboratories, Inc., Class A(b)		713,123

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

22

PowerShares FTSE RAFI US 1000 Portfolio (PRF) (continued)

April 30, 2015

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Health Care (continued)
	144,467	Boston Scientific Corp.(b)	$	2,574,402
	271,327	Bristol-Myers Squibb Co.		17,291,670
	22,665	Brookdale Senior Living, Inc.(b)		821,153
	8,015	C.R. Bard, Inc.		1,335,139
	153,774	Cardinal Health, Inc.		12,969,299
	25,568	Celgene Corp.(b)		2,762,878
	20,446	Centene Corp.(b)		1,267,448
	17,823	Cerner Corp.(b)		1,279,870
	46,779	Cigna Corp.		5,830,535
	59,455	Community Health Systems, Inc.(b)		3,191,544
	4,391	Cooper Cos., Inc. (The)		781,905
	44,024	DaVita HealthCare Partners, Inc.(b)		3,570,346
	20,454	DENTSPLY International, Inc.		1,043,154
	6,729	Edwards Lifesciences Corp.(b)		852,228
	224,801	Eli Lilly & Co.		16,156,448
	7,698	Endo International PLC(b)		647,132
	19,888	Envision Healthcare Holdings, Inc.(b)		754,948
	184,328	Express Scripts Holding Co.(b)		15,925,939
	67,993	Gilead Sciences, Inc.(b)		6,833,976
	19,311	Halyard Health, Inc.(b)		936,197
	154,945	HCA Holdings, Inc.(b)		11,467,479
	39,658	Health Net, Inc.(b)		2,087,994
	12,781	HealthSouth Corp.		577,957
	15,853	Henry Schein, Inc.(b)		2,173,446
	20,640	Hologic, Inc.(b)		696,394
	17,718	Hospira, Inc.(b)		1,546,604
	42,264	Humana, Inc.		6,998,918
	3,236	Illumina, Inc.(b)		596,233
	3,026	Intuitive Surgical, Inc.(b)		1,500,835
	547,887	Johnson & Johnson		54,350,390
	42,650	Kindred Healthcare, Inc.		978,818
	18,321	Laboratory Corp. of America Holdings(b)		2,190,459
	16,963	LifePoint Hospitals, Inc.(b)		1,270,189
	13,629	Magellan Health, Inc.(b)		862,716
	6,932	Mallinckrodt PLC(b)		784,564
	70,551	McKesson Corp.		15,761,093
	14,253	MEDNAX, Inc.(b)		1,008,827
	150,892	Medtronic PLC		11,233,909
	646,327	Merck & Co., Inc.		38,495,236
	2,345	Mettler-Toledo International, Inc.(b)		743,388
	10,244	Molina Healthcare, Inc.(b)		606,752
	45,053	Mylan NV(b)		3,255,530
	18,767	Omnicare, Inc.		1,651,121
	36,543	Owens & Minor, Inc.		1,232,230
	17,100	Patterson Cos., Inc.		802,931
	82,277	PDL BioPharma, Inc.(c)		548,788
	17,189	PerkinElmer, Inc.		881,108
	6,731	Perrigo Co. PLC		1,233,658
	1,595,717	Pfizer, Inc.		54,142,678
	38,682	Quest Diagnostics, Inc.		2,762,668
	17,218	Quintiles Transnational Holdings, Inc.(b)		1,134,322
	10,048	ResMed, Inc.		642,469
	39,893	St. Jude Medical, Inc.		2,794,505
	10,772	STERIS Corp.		716,338
	35,412	Stryker Corp.		3,266,403
	6,895	Teleflex, Inc.		847,809

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Health Care (continued)
	50,898	Tenet Healthcare Corp.(b)	$	2,435,978
	41,620	Thermo Fisher Scientific, Inc.		5,230,802
	3,836	United Therapeutics Corp.(b)		612,571
	205,220	UnitedHealth Group, Inc.		22,861,508
	16,303	Universal Health Services, Inc., Class B		1,906,636
	13,099	Varian Medical Systems, Inc.(b)		1,163,846
	11,158	VCA, Inc.(b)		568,723
	8,274	Waters Corp.(b)		1,035,822
	16,563	WellCare Health Plans, Inc.(b)		1,282,473
	20,425	Zimmer Holdings, Inc.		2,243,482
	35,068	Zoetis, Inc.		1,557,721
				463,448,552
		Industrials—10.6%
	96,932	3M Co.		15,159,195
	23,910	ABM Industries, Inc.		766,315
	50,290	ADT Corp. (The)(c)		1,890,904
	54,439	AECOM(b)		1,718,095
	39,909	AGCO Corp.		2,055,713
	10,177	Allegion PLC		622,324
	26,481	Allison Transmission Holdings, Inc.		812,437
	19,960	American Airlines Group, Inc.		963,769
	26,252	AMETEK, Inc.		1,376,130
	38,816	Armstrong World Industries, Inc.(b)		2,124,788
	43,860	Avis Budget Group, Inc.(b)		2,374,580
	14,896	B/E Aerospace, Inc.		890,632
	24,801	Babcock & Wilcox Co. (The)		801,568
	114,812	Boeing Co. (The)		16,457,152
	27,422	Brink’s Co. (The)		725,860
	32,814	C.H. Robinson Worldwide, Inc.		2,112,893
	10,198	Carlisle Cos., Inc.		984,107
	217,900	Caterpillar, Inc.		18,931,152
	32,646	Chicago Bridge & Iron Co. NV(c)		1,555,582
	15,216	Cintas Corp.		1,216,519
	221,657	Civeo Corp.		1,035,138
	14,485	Clean Harbors, Inc.(b)		800,296
	16,229	Colfax Corp.(b)		804,796
	21,511	Con-way, Inc.		884,102
	33,693	Covanta Holding Corp.		683,631
	9,736	Crane Co.		594,967
	201,123	CSX Corp.		7,258,529
	36,422	Cummins, Inc.		5,035,706
	9,686	Curtiss-Wright Corp.		707,659
	70,457	Danaher Corp.		5,769,019
	111,137	Deere & Co.		10,060,121
	39,864	Delta Air Lines, Inc.		1,779,529
	9,757	Deluxe Corp.		631,766
	19,799	Donaldson Co., Inc.		739,889
	37,164	Dover Corp.		2,814,058
	919,818	DryShips, Inc. (Greece)(b)		653,071
	5,733	Dun & Bradstreet Corp. (The)		731,932
	103,350	Eaton Corp. PLC		7,103,245
	20,916	EMCOR Group, Inc.		933,481
	189,107	Emerson Electric Co.		11,125,165
	8,893	EnerSys		603,835
	13,090	Equifax, Inc.		1,268,814
	7,238	Esterline Technologies Corp.(b)		805,517

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

23

PowerShares FTSE RAFI US 1000 Portfolio (PRF) (continued)

April 30, 2015

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrials (continued)
	54,928	Exelis, Inc.	$	1,346,835
	36,452	Expeditors International of Washington, Inc.		1,670,595
	41,724	Fastenal Co.		1,778,277
	54,418	FedEx Corp.		9,227,660
	24,181	Flowserve Corp.		1,415,314
	70,127	Fluor Corp.		4,217,438
	20,369	Fortune Brands Home & Security, Inc.		908,457
	15,966	FTI Consulting, Inc.(b)		656,362
	11,663	GATX Corp.		634,467
	18,434	Generac Holdings, Inc.(b)		768,513
	89,861	General Cable Corp.		1,465,633
	72,428	General Dynamics Corp.		9,945,813
	3,032,385	General Electric Co.		82,116,986
	8,284	Genesee & Wyoming, Inc., Class A(b)		769,998
	49,323	Harsco Corp.		793,114
	40,344	HD Supply Holdings, Inc.(b)		1,331,352
	193,669	Hertz Global Holdings, Inc.(b)		4,036,062
	13,265	Hexcel Corp.		665,240
	129,098	Honeywell International, Inc.		13,028,570
	9,427	Hubbell, Inc., Class B		1,025,940
	8,758	Huntington Ingalls Industries, Inc.		1,152,465
	10,832	IDEX Corp.		812,508
	6,713	IHS, Inc., Class A(b)		842,280
	67,874	Illinois Tool Works, Inc.		6,351,649
	51,857	Ingersoll-Rand PLC		3,414,265
	14,327	ITT Corp.		568,066
	11,650	J.B. Hunt Transport Services, Inc.		1,015,880
	65,537	Jacobs Engineering Group, Inc.(b)		2,808,916
	39,883	Joy Global, Inc.		1,700,611
	11,192	Kansas City Southern		1,147,068
	21,585	KAR Auction Services, Inc.		803,178
	102,501	KBR, Inc.		1,790,692
	24,584	Kennametal, Inc.		870,519
	12,524	Kirby Corp.(b)		983,510
	22,833	KLX, Inc.(b)		956,931
	30,916	L-3 Communications Holdings, Inc.		3,552,558
	10,243	Lincoln Electric Holdings, Inc.		684,847
	64,986	Lockheed Martin Corp.		12,126,388
	29,464	Manitowoc Co., Inc. (The)		581,325
	37,042	Manpowergroup, Inc.		3,160,794
	55,537	Masco Corp.		1,471,175
	32,633	MasTec, Inc.(b)		585,436
	8,567	Moog, Inc., Class A(b)		598,662
	64,471	MRC Global, Inc.(b)		941,277
	9,543	MSC Industrial Direct Co., Inc., Class A		678,126
	60,809	Navistar International Corp.(b)(c)		1,821,838
	45,151	Nielsen NV		2,029,086
	66,275	Norfolk Southern Corp.		6,683,834
	50,113	Northrop Grumman Corp.		7,719,406
	42,452	NOW, Inc.(b)(c)		1,014,603
	9,818	Old Dominion Freight Line, Inc.(b)		698,354
	18,244	Orbital ATK, Inc.		1,334,731
	27,695	Oshkosh Corp.		1,491,099
	42,683	Owens Corning		1,650,125
	81,733	PACCAR, Inc.		5,341,252

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrials (continued)
	11,417	Pall Corp.	$	1,111,102
	31,587	Parker-Hannifin Corp.		3,770,224
	30,467	Pentair PLC (United Kingdom)		1,893,524
	96,861	Pitney Bowes, Inc.		2,166,781
	18,172	Precision Castparts Corp.		3,755,971
	55,979	Quanta Services, Inc.(b)		1,618,353
	132,351	R.R. Donnelley & Sons Co.		2,464,376
	78,536	Raytheon Co.		8,167,744
	10,753	Regal Beloit Corp.		840,885
	95,738	Republic Services, Inc.		3,889,835
	23,585	Rexnord Corp.(b)		624,767
	15,451	Robert Half International, Inc.		856,758
	20,287	Rockwell Automation, Inc.		2,406,038
	21,707	Rockwell Collins, Inc.		2,112,742
	9,465	Roper Technologies, Inc.		1,591,729
	20,683	Ryder System, Inc.		1,972,331
	15,210	Sensata Technologies Holding NV(b)		839,744
	8,196	Snap-on, Inc.		1,225,712
	20,663	Southwest Airlines Co.		838,091
	24,199	Spirit AeroSystems Holdings, Inc., Class A(b)		1,231,487
	13,952	SPX Corp.		1,074,304
	36,002	Stanley Black & Decker, Inc.		3,553,397
	7,013	Stericycle, Inc.(b)		935,745
	7,413	Teledyne Technologies, Inc.(b)		778,143
	39,354	Terex Corp.		1,080,661
	59,303	Textron, Inc.		2,608,146
	21,235	Timken Co. (The)		834,323
	8,158	Towers Watson & Co., Class A		1,035,291
	8,184	TransDigm Group, Inc.		1,736,072
	28,605	Trinity Industries, Inc.		774,909
	16,504	Triumph Group, Inc.		977,697
	25,095	Tutor Perini Corp.(b)		532,014
	67,011	Tyco International PLC		2,638,893
	109,176	Union Pacific Corp.		11,597,766
	23,969	United Continental Holdings, Inc.(b)		1,431,908
	140,291	United Parcel Service, Inc., Class B		14,103,454
	17,237	United Rentals, Inc.(b)		1,664,749
	20,672	United Stationers, Inc.		839,490
	186,858	United Technologies Corp.		21,255,097
	49,699	UTi Worldwide, Inc.(b)		448,782
	5,993	Valmont Industries, Inc.		755,238
	9,567	Verisk Analytics, Inc., Class A(b)		717,908
	10,105	W.W. Grainger, Inc.		2,510,385
	5,262	WABCO Holdings, Inc.(b)		654,856
	17,766	Waste Connections, Inc.		842,286
	120,962	Waste Management, Inc.		5,991,248
	6,074	Watsco, Inc.		730,641
	18,743	WESCO International, Inc.(b)		1,352,120
	32,191	Xylem, Inc.		1,191,711
	30,187	YRC Worldwide, Inc.(b)		470,917
				482,046,406
		Information Technology—11.8%
	92,584	Accenture PLC, Class A		8,577,908
	118,203	Activision Blizzard, Inc.		2,696,802
	36,910	Adobe Systems, Inc.(b)		2,807,375

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

24

PowerShares FTSE RAFI US 1000 Portfolio (PRF) (continued)

April 30, 2015

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	358,340	Advanced Micro Devices, Inc.(b)(c)	$	809,848
	14,863	Akamai Technologies, Inc.(b)		1,096,592
	5,047	Alliance Data Systems Corp.(b)		1,500,524
	42,046	Altera Corp.		1,752,477
	24,679	Amdocs Ltd.		1,359,073
	69,569	Amkor Technology, Inc.(b)		489,070
	26,811	Amphenol Corp., Class A		1,484,525
	46,306	Analog Devices, Inc.		2,863,563
	13,964	Anixter International, Inc.(b)		985,858
	8,758	ANSYS, Inc.(b)		751,787
	31,052	AOL, Inc.(b)		1,238,975
	475,733	Apple, Inc.		59,537,985
	168,284	Applied Materials, Inc.		3,330,340
	66,984	Arrow Electronics, Inc.(b)		3,999,615
	17,106	Autodesk, Inc.(b)		972,134
	60,966	Automatic Data Processing, Inc.		5,154,066
	12,214	Avago Technologies Ltd. (Singapore)		1,427,572
	95,235	Avnet, Inc.		4,059,868
	28,257	Benchmark Electronics, Inc.(b)		664,887
	49,347	Booz Allen Hamilton Holding Corp., Class A		1,357,043
	66,260	Broadcom Corp., Class A		2,929,023
	16,314	Broadridge Financial Solutions, Inc.		879,651
	76,444	Brocade Communications Systems, Inc.		863,817
	77,146	CA, Inc.		2,450,928
	9,981	CACI International, Inc., Class A(b)		880,723
	25,649	CDW Corp.		982,870
	12,762	Check Point Software Technologies Ltd. (Israel)(b)		1,065,372
	840,891	Cisco Systems, Inc.		24,242,888
	22,475	Citrix Systems, Inc.(b)		1,509,421
	50,211	Cognizant Technology Solutions Corp., Class A(b)		2,939,352
	19,217	CommScope Holding Co., Inc.(b)		567,094
	44,023	Computer Sciences Corp.		2,837,282
	18,595	CoreLogic, Inc.(b)		727,250
	278,963	Corning, Inc.		5,838,696
	21,328	Cree, Inc.(b)(c)		675,671
	20,696	Diebold, Inc.		719,600
	6,764	DST Systems, Inc.		778,401
	144,483	eBay, Inc.(b)		8,417,580
	12,184	EchoStar Corp., Class A(b)		609,200
	17,471	Electronic Arts, Inc.(b)		1,014,890
	302,318	EMC Corp.		8,135,377
	5,325	Equinix, Inc. REIT		1,362,827
	6,337	F5 Networks, Inc.(b)		773,241
	48,686	Facebook, Inc., Class A(b)		3,834,996
	40,518	Fairchild Semiconductor International, Inc.(b)		736,010
	44,197	Fidelity National Information Services, Inc.		2,761,871
	24,699	First Solar, Inc.(b)		1,473,789
	31,470	Fiserv, Inc.(b)		2,442,072
	403,763	Flextronics International Ltd.(b)		4,653,369
	23,607	FLIR Systems, Inc.		729,220
	32,420	Genpact Ltd.(b)		708,701
	27,369	Google, Inc., Class A(b)		15,019,286

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	27,343	Google, Inc., Class C(b)	$	14,692,488
	24,997	Harris Corp.		2,005,759
	694,195	Hewlett-Packard Co.		22,887,609
	149,513	Ingram Micro, Inc., Class A(b)		3,761,747
	27,720	Insight Enterprises, Inc.(b)		793,346
	1,227,807	Intel Corp.		39,965,118
	261,645	International Business Machines Corp.		44,817,172
	19,318	Intuit, Inc.		1,938,175
	103,588	Jabil Circuit, Inc.		2,332,802
	108,671	Juniper Networks, Inc.		2,872,175
	35,392	Keysight Technologies, Inc.(b)		1,184,216
	28,879	KLA-Tencor Corp.		1,698,085
	38,715	Knowles Corp.(b)(c)		742,167
	19,031	Lam Research Corp.		1,438,363
	25,451	Leidos Holdings, Inc.		1,059,780
	25,371	Lexmark International, Inc., Class A		1,126,219
	31,649	Linear Technology Corp.		1,459,968
	2,294	LinkedIn Corp., Class A(b)		578,386
	88,561	Marvell Technology Group Ltd.		1,240,740
	44,216	MasterCard, Inc., Class A		3,988,725
	57,960	Maxim Integrated Products, Inc.		1,902,827
	35,956	Microchip Technology, Inc.		1,713,483
	149,941	Micron Technology, Inc.(b)		4,217,840
	1,200,485	Microsoft Corp.		58,391,590
	35,623	Motorola Solutions, Inc.		2,128,474
	51,222	NCR Corp.(b)		1,405,532
	49,460	NetApp, Inc.		1,792,925
	53,640	Nuance Communications, Inc.(b)		822,301
	70,562	NVIDIA Corp.		1,566,124
	17,824	NXP Semiconductors NV (Netherlands)(b)		1,713,243
	80,447	ON Semiconductor Corp.(b)		926,749
	457,518	Oracle Corp.		19,956,935
	53,695	Paychex, Inc.		2,598,301
	232,497	QUALCOMM, Inc.		15,809,796
	9,692	Red Hat, Inc.(b)		729,420
	16,983	salesforce.com, inc.(b)		1,236,702
	31,851	SanDisk Corp.		2,132,106
	54,569	Sanmina Corp.(b)		1,109,388
	11,145	Science Applications International Corp.		558,365
	59,222	Seagate Technology PLC(c)		3,477,516
	10,167	Skyworks Solutions, Inc.		937,906
	123,843	Symantec Corp.		3,086,787
	16,300	SYNNEX Corp.		1,246,950
	22,888	Synopsys, Inc.(b)		1,072,989
	70,546	TE Connectivity Ltd. (Switzerland)		4,694,836
	45,844	Tech Data Corp.(b)		2,584,226
	26,083	Teradata Corp.(b)		1,147,391
	43,869	Teradyne, Inc.		800,609
	144,268	Texas Instruments, Inc.		7,820,768
	22,646	Total System Services, Inc.		895,876
	34,979	Trimble Navigation Ltd.(b)		889,516
	42,971	Unisys Corp.(b)		935,479
	18,230	Vantiv, Inc., Class A(b)		712,793
	11,536	VeriSign, Inc.(b)		732,651
	117,176	Visa, Inc., Class A		7,739,475
	67,074	Vishay Intertechnology, Inc.		850,498

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

25

PowerShares FTSE RAFI US 1000 Portfolio (PRF) (continued)

April 30, 2015

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	31,766	Western Digital Corp.	$	3,104,809
	124,446	Western Union Co. (The)		2,523,765
	464,584	Xerox Corp.		5,342,716
	45,954	Xilinx, Inc.		1,992,565
	95,714	Yahoo!, Inc.(b)		4,074,066
				540,437,683
		Materials—4.0%
	33,486	Air Products & Chemicals, Inc.		4,802,897
	10,579	Airgas, Inc.		1,071,441
	167,497	AK Steel Holding Corp.(b)(c)		850,885
	19,428	Albemarle Corp.		1,159,852
	350,432	Alcoa, Inc.		4,702,798
	41,119	Allegheny Technologies, Inc.		1,397,635
	12,629	AptarGroup, Inc.		783,882
	16,472	Ashland, Inc.		2,081,402
	28,444	Avery Dennison Corp.		1,581,202
	19,604	Axiall Corp.		799,843
	25,386	Ball Corp.		1,863,586
	30,941	Bemis Co., Inc.		1,392,345
	26,021	Berry Plastics Group, Inc.(b)		890,439
	20,380	Cabot Corp.		871,041
	30,981	Celanese Corp., Series A		2,055,899
	9,624	CF Industries Holdings, Inc.		2,766,611
	24,622	Chemtura Corp.(b)		741,861
	393,140	Cliffs Natural Resources, Inc.(c)		2,335,252
	74,444	Commercial Metals Co.		1,235,770
	6,487	Compass Minerals International, Inc.		572,997
	38,367	Constellium NV, Class A (Netherlands)(b)		704,802
	37,654	Crown Holdings, Inc.(b)		2,043,106
	11,551	Cytec Industries, Inc.		638,655
	36,901	Domtar Corp.		1,594,861
	341,657	Dow Chemical Co. (The)		17,424,507
	191,073	E.I. du Pont de Nemours & Co.		13,986,544
	35,453	Eastman Chemical Co.		2,702,228
	30,404	Ecolab, Inc.		3,404,640
	18,422	FMC Corp.		1,092,609
	743,972	Freeport-McMoRan, Inc.		17,312,228
	78,212	Graphic Packaging Holding Co.		1,102,789
	13,712	Greif, Inc., Class A		558,901
	68,143	Huntsman Corp.		1,570,696
	9,945	International Flavors & Fragrances, Inc.		1,141,189
	125,870	International Paper Co.		6,761,736
	130,947	LyondellBasell Industries NV, Class A		13,555,633
	6,594	Martin Marietta Materials, Inc.		940,634
	41,814	MeadWestvaco Corp.		2,040,523
	63,138	Monsanto Co.		7,195,207
	95,335	Mosaic Co. (The)		4,194,740
	1,574	NewMarket Corp.		703,421
	232,643	Newmont Mining Corp.		6,162,713
	115,654	Nucor Corp.		5,650,854
	27,811	Olin Corp.		821,259
	88,164	Owens-Illinois, Inc.(b)		2,108,001
	13,723	Packaging Corp. of America		949,494
	16,045	PolyOne Corp.		626,557
	19,880	PPG Industries, Inc.		4,404,613
	50,565	Praxair, Inc.		6,165,391

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Materials (continued)
	31,470	Reliance Steel & Aluminum Co.	$	2,036,738
	35,894	Resolute Forest Products, Inc.(b)		553,486
	27,580	Rock-Tenn Co., Class A		1,736,988
	26,075	RPM International, Inc.		1,239,606
	28,992	Sealed Air Corp.		1,322,035
	10,068	Sensient Technologies Corp.		658,045
	6,990	Sherwin-Williams Co. (The)		1,943,220
	10,761	Sigma-Aldrich Corp.		1,494,918
	10,561	Silgan Holdings, Inc.		568,921
	29,427	Sonoco Products Co.		1,315,093
	62,385	Southern Copper Corp. (Mexico)(c)		2,032,503
	85,603	Steel Dynamics, Inc.		1,894,394
	99,164	United States Steel Corp.(c)		2,381,919
	12,237	Valspar Corp. (The)		992,421
	18,345	Vulcan Materials Co.		1,568,864
	8,514	W.R. Grace & Co.(b)		823,474
				184,078,794
		Telecommunication Services—3.9%
	2,647,479	AT&T, Inc.		91,708,673
	326,526	CenturyLink, Inc.		11,741,875
	503,813	Frontier Communications Corp.		3,456,156
	68,326	Leap Wireless Corp.(b)		172,182
	27,871	Level 3 Communications, Inc.(b)		1,559,104
	69,881	Telephone & Data Systems, Inc.		1,866,521
	57,350	T-Mobile US, Inc.(b)		1,952,194
	1,241,195	Verizon Communications, Inc.		62,605,876
	82,766	Windstream Holdings, Inc.(c)		966,707
				176,029,288
		Utilities—5.0%
	412,859	AES Corp. (The)		5,470,382
	37,955	AGL Resources, Inc.		1,907,998
	12,459	ALLETE, Inc.		626,688
	32,555	Alliant Energy Corp.		1,968,601
	101,677	Ameren Corp.		4,162,656
	174,520	American Electric Power Co., Inc.		9,924,952
	43,191	American Water Works Co., Inc.		2,354,773
	27,112	Aqua America, Inc.		727,144
	33,390	Atmos Energy Corp.		1,803,060
	23,550	Avista Corp.		768,201
	15,579	Black Hills Corp.		767,889
	109,520	Calpine Corp.(b)		2,388,631
	188,003	CenterPoint Energy, Inc.		3,942,423
	16,153	Cleco Corp.		877,916
	84,328	CMS Energy Corp.		2,861,249
	121,547	Consolidated Edison, Inc.		7,481,218
	143,958	Dominion Resources, Inc.		10,318,909
	61,296	DTE Energy Co.		4,881,000
	221,244	Duke Energy Corp.		17,161,897
	25,767	Dynegy, Inc.(b)		857,268
	100,242	Edison International		6,108,747
	89,075	Entergy Corp.		6,874,808
	78,902	Eversource Energy		3,847,262
	466,397	Exelon Corp.		15,866,826
	250,394	FirstEnergy Corp.		8,991,649
	59,333	Great Plains Energy, Inc.		1,553,338

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

26

PowerShares FTSE RAFI US 1000 Portfolio (PRF) (continued)

April 30, 2015

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Utilities (continued)
	38,996	Hawaiian Electric Industries, Inc.	$	1,220,575
	13,422	IDACORP, Inc.		809,749
	29,439	Integrys Energy Group, Inc.		2,151,991
	19,190	ITC Holdings Corp.		690,840
	74,624	MDU Resources Group, Inc.		1,663,369
	18,573	National Fuel Gas Co.		1,197,030
	23,585	New Jersey Resources Corp.		719,578
	106,276	NextEra Energy, Inc.		10,726,437
	80,658	NiSource, Inc.		3,502,170
	11,793	NorthWestern Corp.		614,297
	152,204	NRG Energy, Inc.		3,841,629
	58,237	OGE Energy Corp.		1,903,185
	18,022	ONE Gas, Inc.		756,383
	106,128	Pepco Holdings, Inc.		2,757,205
	164,636	PG&E Corp.		8,712,537
	21,315	Piedmont Natural Gas Co., Inc.		798,034
	40,788	Pinnacle West Capital Corp.		2,496,226
	30,347	PNM Resources, Inc.		843,040
	28,948	Portland General Electric Co.		1,017,812
	225,871	PPL Corp.		7,686,390
	189,071	Public Service Enterprise Group, Inc.		7,854,009
	39,206	Questar Corp.		918,989
	44,459	SCANA Corp.		2,355,438
	55,589	Sempra Energy		5,901,884
	313,844	Southern Co. (The)		13,903,289
	15,595	Southwest Gas Corp.		857,725
	96,147	TECO Energy, Inc.		1,821,986
	57,494	UGI Corp.		2,001,366
	19,534	UIL Holdings Corp.		974,356
	28,213	Vectren Corp.		1,217,955
	44,535	Westar Energy, Inc.		1,676,743
	18,075	WGL Holdings, Inc.		994,306
	52,322	Wisconsin Energy Corp.		2,570,057
	169,812	Xcel Energy, Inc.		5,758,325
				227,410,390
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $3,829,576,116)—100.0%		4,558,866,836
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—0.8%
	36,139,688	Invesco Liquid Assets Portfolio—Institutional Class(e)(f) (Cost $36,139,688)		36,139,688
		Total Investments (Cost $3,865,715,804)—100.8%		4,595,006,524
		Other assets less liabilities—(0.8)%		(36,989,706	)
		Net Assets—100.0%	$	4,558,016,818

Investment Abbreviations:

REIT—Real Estate Investment Trust

Notes to Schedule of Investments:

^(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.

^(b)  Non-income producing security.

^(c)  All or a portion of this security was out on loan at April 30, 2015.

^(d)  Affiliated company. The Fund’s Adviser and Invesco Mortgage Capital, Inc. REIT are wholly-owned subsidiaries of Invesco Ltd., and therefore, Invesco Ltd. and Invesco Mortgage Capital, Inc. REIT are considered to be affiliated. See Note 4.

^(e)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated.

^(f)  The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2G. The following table presents the Fund’s gross and net amount of assets available for offset by the Fund as of April 30, 2015.

Counterparty	Gross Amount of Securities on Loan at Value		Cash Collateral Received for Securities Loaned*			Net Amount
Brown Brothers Harriman & Co.	$	32,307,519	$	(32,307,519	)	$	—

* Amount does not include excess collateral received, if any.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

27

Schedule of Investments^(a)

PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ)

April 30, 2015

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—17.3%
	19,559	1-800-FLOWERS.COM, Inc., Class A(b)	$	206,739
	32,427	A H Belo Corp., Series A		216,937
	439,014	Aeropostale, Inc.(b)(c)		1,356,553
	21,447	AMC Entertainment Holdings, Inc., Class A		644,697
	24,940	AMC Networks, Inc., Class A(b)		1,881,474
	239,019	American Apparel, Inc.(b)(c)		160,143
	75,449	American Axle & Manufacturing Holdings, Inc.(b)		1,880,944
	13,181	American Public Education, Inc.(b)		367,618
	6,904	America’s Car-Mart, Inc.(b)		354,451
	346,658	Arcos Dorados Holdings, Inc., Class A (Argentina)(c)		2,079,948
	11,874	Arctic Cat, Inc.		421,408
	22,128	Ascent Capital Group, Inc., Series A(b)		886,005
	10,566	Bassett Furniture Industries, Inc.		298,173
	39,012	Beazer Homes USA, Inc.(b)		683,100
	101,065	bebe stores, inc.		334,525
	94,050	Belmond Ltd., Class A(b)		1,158,696
	44,134	Big 5 Sporting Goods Corp.		601,988
	1,951	Biglari Holdings, Inc.(b)		713,110
	13,009	BJ’s Restaurants, Inc.(b)		608,821
	9,498	Blue Nile, Inc.(b)		258,441
	28,546	Blyth, Inc.(b)		219,233
	27,815	Bob Evans Farms, Inc.		1,196,601
	124,205	Bon-Ton Stores, Inc. (The)(c)		890,550
	110,340	Boyd Gaming Corp.(b)		1,456,488
	24,821	Bravo Brio Restaurant Group, Inc.(b)		365,613
	42,828	Bridgepoint Education, Inc.(b)		375,602
	19,211	Bright Horizons Family Solutions, Inc.(b)		965,929
	55,549	Brown Shoe Co., Inc.		1,649,805
	34,758	Buckle, Inc. (The)(c)		1,557,158
	6,140	Buffalo Wild Wings, Inc.(b)		978,102
	11,034	Build-A-Bear Workshop, Inc.(b)		203,357
	53,307	Callaway Golf Co.		516,012
	6,846	Capella Education Co.		369,889
	277,928	Career Education Corp.(b)		1,167,298
	21,288	Carmike Cinemas, Inc.(b)		642,472
	12,315	Carriage Services, Inc.		291,127
	57,574	Carrols Restaurant Group, Inc.(b)		520,469
	19,671	Carter’s, Inc.		1,964,346
	22,884	Cato Corp. (The), Class A		900,257
	5,702	Cavco Industries, Inc.(b)		373,880
	155,549	Central European Media Enterprises Ltd., Class A (Czech Republic)(b)		427,760
	28,994	Cheesecake Factory, Inc. (The)		1,453,469
	26,425	Children’s Place, Inc. (The)		1,602,940
	42,301	China XD Plastics Co. Ltd. (China)(b)(c)		244,923
	23,621	Choice Hotels International, Inc.		1,414,189
	54,452	Christopher & Banks Corp.(b)		323,445
	7,698	Churchill Downs, Inc.		917,371
	8,675	Chuy’s Holdings, Inc.(b)		196,228
	14,487	Citi Trends, Inc.(b)		330,014
	77,592	Clear Channel Outdoor Holdings, Inc., Class A		882,997
	24,518	ClubCorp Holdings, Inc.		536,699
	13,475	Columbia Sportswear Co.		844,882

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Discretionary (continued)
	29,388	Conn’s, Inc.(b)	$	821,982
	26,908	Core-Mark Holding Co., Inc.		1,418,321
	15,198	Cracker Barrel Old Country Store, Inc.		2,013,431
	120,684	Crocs, Inc.(b)		1,593,029
	9,111	CSS Industries, Inc.		258,206
	244,241	CTC Media, Inc. (Russia)		852,401
	151,586	Cumulus Media, Inc., Class A(b)		345,616
	27,576	Deckers Outdoor Corp.(b)		2,040,624
	16,833	Del Frisco’s Restaurant Group, Inc.(b)		339,522
	46,554	Denny’s Corp.(b)		484,627
	23,413	Destination Maternity Corp.		276,039
	60,756	Destination XL Group, Inc.(b)		295,882
	92,642	Dex Media, Inc.(b)(c)		243,648
	11,801	DineEquity, Inc.		1,137,970
	22,568	Dixie Group, Inc. (The)(b)		221,843
	16,468	Domino’s Pizza, Inc.		1,776,074
	12,664	Dorman Products, Inc.(b)(c)		593,055
	68,460	DreamWorks Animation SKG, Inc., Class A(b)(c)		1,784,068
	16,863	Drew Industries, Inc.		955,626
	38,977	Dunkin’ Brands Group, Inc.		2,031,091
	20,743	E.W. Scripps Co. (The), Class A		483,104
	35,436	Entercom Communications Corp., Class A(b)		420,980
	33,300	Entravision Communications Corp., Class A		217,782
	22,868	Ethan Allen Interiors, Inc.		553,863
	54,165	EVINE Live, Inc.(b)		322,823
	133,820	Express, Inc.(b)		2,181,266
	33,126	Extended Stay America, Inc.		671,133
	80,408	Federal-Mogul Holdings Corp.(b)		1,037,263
	8,051	Fiesta Restaurant Group, Inc.(b)		406,978
	54,246	Finish Line, Inc. (The), Class A		1,330,654
	27,788	Five Below, Inc.(b)		937,011
	9,606	Flexsteel Industries, Inc.		345,912
	35,145	Francesca’s Holdings Corp.(b)		595,005
	56,791	Fred’s, Inc., Class A		958,064
	14,361	FTD Cos., Inc.(b)		409,863
	45,023	Fuel Systems Solutions, Inc.(b)		499,755
	10,543	Gentherm, Inc.(b)		555,932
	10,378	G-III Apparel Group Ltd.(b)		1,153,826
	22,521	Global Eagle Entertainment, Inc.(b)		287,593
	4,485	GoPro, Inc., Class A(b)(c)		224,609
	16,872	Grand Canyon Education, Inc.(b)		763,964
	57,824	Gray Television, Inc.(b)		766,746
	27,864	Green Brick Partners, Inc.(b)		228,485
	107,772	Groupon, Inc., Class A(b)		745,782
	80,340	Harte-Hanks, Inc.		545,509
	19,892	Haverty Furniture Cos., Inc.		426,882
	21,295	Helen of Troy Ltd.(b)		1,865,655
	102,289	hhgregg, Inc.(b)(c)		585,093
	18,930	Hibbett Sports, Inc.(b)		885,924
	14,323	Houghton Mifflin Harcourt Co.(b)		327,424
	155,285	Hovnanian Enterprises, Inc., Class A(b)(c)		484,489
	24,101	HSN, Inc.		1,504,384
	30,284	Hyatt Hotels Corp., Class A(b)		1,757,986

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

28

PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ) (continued)

April 30, 2015

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Discretionary (continued)
	40,815	Iconix Brand Group, Inc.(b)	$	1,073,843
	16,606	IMAX Corp. (Canada)(b)		620,400
	25,108	International Speedway Corp., Class A		912,927
	22,887	Interval Leisure Group, Inc.		567,369
	17,676	iRobot Corp.(b)		573,056
	41,101	Isle of Capri Casinos, Inc.(b)		584,456
	254,588	ITT Educational Services, Inc.(b)(c)		1,344,225
	20,698	Jack in the Box, Inc.		1,795,965
	53,368	JAKKS Pacific, Inc.(b)(c)		355,965
	32,076	John Wiley & Sons, Inc., Class A		1,824,483
	8,482	Johnson Outdoors, Inc., Class A		267,183
	14,988	Journal Media Group, Inc.(b)		139,239
	46,818	K12, Inc.(b)		757,047
	25,059	Kate Spade & Co.(b)		819,429
	74,726	KB Home(c)		1,082,780
	13,434	Kirkland’s, Inc.(b)		318,923
	18,795	Krispy Kreme Doughnuts, Inc.(b)		334,551
	35,872	La Quinta Holdings, Inc.(b)		863,798
	18,903	Lands’ End, Inc.(b)		555,370
	39,120	La-Z-Boy, Inc.		1,025,335
	256,296	LeapFrog Enterprises, Inc., Class A(b)		579,229
	92,298	Lee Enterprises, Inc.(b)		276,894
	15,503	LGI Homes, Inc.(b)(c)		255,334
	44,023	Liberty TripAdvisor Holdings, Inc., Series A(b)		1,307,923
	36,096	Life Time Fitness, Inc.(b)		2,580,864
	17,429	Lifetime Brands, Inc.		253,592
	28,182	Lions Gate Entertainment Corp.		873,924
	16,020	Lithia Motors, Inc., Class A		1,597,675
	16,634	Loral Space & Communications, Inc.(b)		1,147,746
	20,040	lululemon athletica, Inc.(b)		1,275,346
	12,070	Lumber Liquidators Holdings, Inc.(b)(c)		331,804
	31,485	M/I Homes, Inc.(b)		710,302
	25,144	Madison Square Garden Co. (The), Class A(b)		2,019,063
	24,418	Marcus Corp. (The)		472,977
	16,338	MarineMax, Inc.(b)		360,743
	37,652	Markit Ltd.(b)		965,774
	15,329	Marriott Vacations Worldwide Corp.		1,260,197
	6,938	Mattress Firm Holding Corp.(b)(c)		409,897
	228,777	McClatchy Co. (The), Class A(b)		318,000
	49,784	MDC Holdings, Inc.(c)		1,336,203
	32,622	Media General, Inc.(b)		550,986
	33,278	Meredith Corp.		1,731,787
	29,049	Meritage Homes Corp.(b)		1,242,426
	21,028	Michaels Cos., Inc. (The)(b)		543,784
	83,358	Modine Manufacturing Co.(b)		1,024,470
	12,808	Monro Muffler Brake, Inc.		767,071
	7,356	Morningstar, Inc.		558,247
	11,080	Motorcar Parts of America, Inc.(b)		323,868
	18,479	Movado Group, Inc.		541,065
	12,396	NACCO Industries, Inc., Class A		607,156
	86,404	National CineMedia, Inc.		1,316,797
	23,866	New Media Investment Group, Inc.		552,021
	94,546	New York & Co., Inc.(b)		239,201
	94,709	New York Times Co. (The), Class A		1,268,154

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Discretionary (continued)
	7,870	Nexstar Broadcasting Group, Inc., Class A	$	460,080
	9,556	Noodles & Co., Class A(b)(c)		191,311
	42,711	Norwegian Cruise Line Holdings Ltd.(b)		2,071,911
	26,385	Nutrisystem, Inc.		502,634
	34,474	Orbitz Worldwide, Inc.(b)		404,035
	17,657	Overstock.com, Inc.(b)		379,096
	13,773	Oxford Industries, Inc.		1,094,265
	147,200	Pacific Sunwear of California, Inc.(b)		309,120
	10,655	Papa John’s International, Inc.		653,897
	50,424	Penn National Gaming, Inc.(b)		810,818
	146,818	Pep Boys-Manny, Moe & Jack (The)(b)		1,344,853
	29,195	Perry Ellis International, Inc.(b)		698,344
	16,248	PetMed Express, Inc.(c)		257,206
	110,862	Pier 1 Imports, Inc.(c)		1,402,404
	53,338	Pinnacle Entertainment, Inc.(b)		1,960,705
	21,280	Pool Corp.		1,380,859
	3,760	Popeyes Louisiana Kitchen, Inc.(b)		209,357
	496,695	Quiksilver, Inc.(b)(c)		824,514
	17,958	RCI Hospitality Holdings, Inc.(b)		204,542
	23,150	Reading International, Inc., Class A(b)		308,358
	9,207	Red Robin Gourmet Burgers, Inc.(b)		691,354
	102,735	Regis Corp.(b)		1,697,182
	8,732	Restoration Hardware Holdings, Inc.(b)		752,436
	195,584	Ruby Tuesday, Inc.(b)		1,423,852
	17,807	Ruth’s Hospitality Group, Inc.		259,092
	23,053	Ryland Group, Inc. (The)		950,245
	43,823	Scholastic Corp.		1,780,967
	65,987	Scientific Games Corp., Class A(b)(c)		836,055
	55,159	Sears Hometown and Outlet Stores, Inc.(b)		382,252
	26,952	Select Comfort Corp.(b)		830,661
	14,770	ServiceMaster Global Holdings, Inc.(b)		510,451
	18,173	Shoe Carnival, Inc.		474,497
	22,817	Shutterfly, Inc.(b)		1,021,289
	49,026	Sinclair Broadcast Group, Inc., Class A		1,502,157
	28,831	Sizmek, Inc.(b)		200,664
	20,725	Skechers U.S.A., Inc., Class A(b)		1,863,592
	51,004	Smith & Wesson Holding Corp.(b)(c)		758,174
	27,248	SodaStream International Ltd. (Israel)(b)(c)		529,429
	21,978	Sonic Corp.		629,670
	32,644	Sotheby’s		1,394,225
	36,868	Spartan Motors, Inc.		173,648
	17,768	Speedway Motorsports, Inc.		406,887
	48,561	Stage Stores, Inc.		937,713
	17,711	Standard Motor Products, Inc.		669,476
	121,376	Standard Pacific Corp.(b)		983,146
	14,409	Starz, Class A(b)		566,706
	61,863	Stein Mart, Inc.		731,839
	15,697	Steiner Leisure Ltd.(b)		757,223
	44,121	Steven Madden Ltd.(b)		1,721,601
	48,437	Stoneridge, Inc.(b)		583,181
	2,978	Strattec Security Corp.		223,558
	17,660	Strayer Education, Inc.(b)		895,715
	22,517	Sturm Ruger & Co., Inc.(c)		1,234,157
	38,954	Superior Industries International, Inc.		724,544
	38,297	Taylor Morrison Home Corp., Class A(b)		709,260
	31,366	Tempur Sealy International, Inc.(b)		1,910,503

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

29

PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ) (continued)

April 30, 2015

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Discretionary (continued)
	2,691	Tesla Motors, Inc.(b)(c)	$	608,301
	27,409	Texas Roadhouse, Inc.		920,942
	35,056	Thor Industries, Inc.		2,109,320
	14,170	Tilly’s, Inc., Class A(b)		189,028
	48,442	Tower International, Inc.(b)		1,252,710
	60,508	Town Sports International Holdings, Inc.		370,914
	18,995	Townsquare Media, Inc., Class A(b)		259,472
	39,994	Travelport Worldwide Ltd.		633,105
	18,411	TRI Pointe Homes, Inc.(b)		262,909
	14,728	TripAdvisor, Inc., Class A(b)		1,185,457
	22,588	Tuesday Morning Corp.(b)		357,342
	25,524	Tumi Holdings, Inc.(b)		597,006
	14,868	Ulta Salon, Cosmetics & Fragrance, Inc.(b)		2,246,406
	24,050	Under Armour, Inc., Class A(b)		1,865,077
	18,592	Unifi, Inc.(b)		656,112
	8,914	Universal Electronics, Inc.(b)		480,821
	34,200	Universal Technical Institute, Inc.		288,990
	17,555	Vail Resorts, Inc.		1,741,632
	17,866	Vera Bradley, Inc.(b)		254,412
	7,992	Vince Holding Corp.(b)		147,293
	21,866	Vitamin Shoppe, Inc.(b)		915,748
	79,590	VOXX International Corp., Class A(b)		758,493
	68,744	Weight Watchers International, Inc.(b)(c)		587,761
	25,597	West Marine, Inc.(b)		257,250
	7,386	Weyco Group, Inc.		210,501
	15,737	William Lyon Homes, Class A(b)		340,706
	15,625	Winnebago Industries, Inc.(c)		323,594
	60,940	Wolverine World Wide, Inc.		1,872,686
	36,956	World Wrestling Entertainment, Inc., Class A(c)		495,950
	25,573	Zagg, Inc.(b)		213,023
	14,333	Zumiez, Inc.(b)		454,499
				200,317,704
		Consumer Staples—3.4%
	81,293	Adecoagro S.A. (Luxembourg)(b)		789,355
	48,977	B&G Foods, Inc.		1,488,901
	1,521	Boston Beer Co., Inc. (The), Class A(b)		376,904
	37,229	Boulder Brands, Inc.(b)		355,165
	10,449	Calavo Growers, Inc.		529,242
	20,156	Cal-Maine Foods, Inc.(c)		901,175
	117,408	Central Garden & Pet Co., Class A(b)		1,150,598
	13,564	Chefs’ Warehouse, Inc. (The)(b)		247,000
	4,634	Coca-Cola Bottling Co. Consolidated		523,642
	42,229	Coty, Inc., Class A(b)		1,009,695
	15,705	Diamond Foods, Inc.(b)		440,368
	69,795	Elizabeth Arden, Inc.(b)(c)		982,016
	31,267	Fairway Group Holdings Corp., Class A(b)(c)		166,028
	55,273	Fresh Del Monte Produce, Inc.(c)		2,041,232
	22,111	Fresh Market, Inc. (The)(b)(c)		776,980
	30,721	Hain Celestial Group, Inc. (The)(b)		1,850,633
	148,768	HRG Group, Inc.(b)		1,864,063
	15,510	Ingles Markets, Inc., Class A		649,249
	13,468	Inter Parfums, Inc.		406,464
	16,620	Inventure Foods, Inc.(b)		162,045
	7,206	J&J Snack Foods Corp.		751,802
	10,257	John B. Sanfilippo & Son, Inc.		533,467

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Staples (continued)
	16,562	Lancaster Colony Corp.	$	1,484,949
	27,903	Landec Corp.(b)		396,502
	9,393	Medifast, Inc.(b)		281,790
	14,294	National Beverage Corp.(b)		319,471
	14,245	Nature’s Sunshine Products, Inc.		185,327
	10,548	Nutraceutical International Corp.(b)		205,686
	5,883	Oil-Dri Corp. of America		193,080
	38,612	Omega Protein Corp.(b)		493,461
	6,897	Orchids Paper Products Co.		148,216
	52,824	Pilgrim’s Pride Corp.(c)		1,304,753
	32,955	Post Holdings, Inc., Class A(b)		1,546,908
	11,900	PriceSmart, Inc.		957,474
	10,233	Revlon, Inc., Class A(b)		400,213
	230,215	Roundy’s, Inc.(b)		1,160,284
	18,563	Sanderson Farms, Inc.(c)		1,394,452
	257	Seaboard Corp.(b)		925,200
	15,147	Seneca Foods Corp., Class A(b)		436,536
	28,912	Smart & Final Stores, Inc.(b)		500,756
	47,728	Snyders-Lance, Inc.		1,409,408
	55,664	SpartanNash Co.		1,679,383
	12,985	Spectrum Brands Holdings, Inc.		1,187,218
	27,904	Sprouts Farmers Market, Inc.(b)		892,509
	13,368	Tootsie Roll Industries, Inc., Class A(c)		414,141
	3,192	USANA Health Sciences, Inc.(b)		363,058
	69,934	Vector Group Ltd.(c)		1,549,038
	11,004	Village Super Market, Inc., Class A		351,358
	6,551	WD-40 Co.		530,369
	15,997	Weis Markets, Inc.		709,467
				39,417,031
		Energy—7.6%
	57,960	Abraxas Petroleum Corp.(b)		220,248
	3,890	Adams Resources & Energy, Inc.		181,274
	108,126	Aegean Marine Petroleum Network, Inc. (Greece)		1,643,515
	91,063	Alon USA Energy, Inc.		1,465,204
	20,420	Antero Resources Corp.(b)(c)		904,810
	88,258	Approach Resources, Inc.(b)(c)		774,023
	158,935	Basic Energy Services, Inc.(b)		1,619,548
	20,673	Bonanza Creek Energy, Inc.(b)		569,748
	34,416	Bristow Group, Inc.		2,138,266
	91,362	C&J Energy Services Ltd.(b)		1,594,267
	61,461	Callon Petroleum Co.(b)		549,461
	31,173	CARBO Ceramics, Inc.(c)		1,378,782
	22,053	Carrizo Oil & Gas, Inc.(b)		1,229,014
	149,908	CHC Group Ltd. (Canada)(b)(c)		178,391
	4,361	Cheniere Energy, Inc.(b)		333,573
	7,627	Clayton Williams Energy, Inc.(b)		424,595
	77,627	Clean Energy Fuels Corp.(b)(c)		766,179
	150,269	Cobalt International Energy, Inc.(b)		1,607,878
	178,349	Comstock Resources, Inc.(c)		957,734
	21,477	Contango Oil & Gas Co.(b)		538,428
	35,395	Continental Resources, Inc.(b)		1,862,839
	15,918	Core Laboratories NV(c)		2,089,715
	37,590	CVR Energy, Inc.(c)		1,505,104
	56,128	DHT Holdings, Inc.		449,024
	8,071	Diamondback Energy, Inc.(b)		666,423

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

30

PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ) (continued)

April 30, 2015

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Energy (continued)
	23,377	Dril-Quip, Inc.(b)	$	1,863,614
	215,544	Emerald Oil, Inc.(b)		137,948
	78,510	EP Energy Corp., Class A(b)(c)		1,159,593
	28,372	Era Group, Inc.(b)		629,291
	361,697	EXCO Resources, Inc.(c)		745,096
	73,666	Forum Energy Technologies, Inc.(b)		1,713,471
	20,743	Frank’s International NV		431,454
	414,666	Frontline Ltd. (Norway)(b)(c)		1,061,545
	15,333	GasLog Ltd. (Monaco)(c)		341,773
	25,882	Geospace Technologies Corp.(b)		559,051
	87,548	Goodrich Petroleum Corp.(b)(c)		338,811
	60,585	Green Plains, Inc.		1,886,617
	21,284	Gulf Island Fabrication, Inc.		280,736
	5,480	Gulfmark Offshore, Inc., Class A(c)		82,255
	41,436	Gulfport Energy Corp.(b)		2,027,878
	419,198	Halcon Resources Corp.(b)(c)		624,605
	1,486,899	Hercules Offshore, Inc.(b)(c)		1,197,102
	93,950	Hornbeck Offshore Services, Inc.(b)		2,146,758
	19,942	InterOil Corp.(b)(c)		1,031,001
	285,367	ION Geophysical Corp.(b)		650,637
	61,599	Kosmos Energy Ltd.(b)		602,438
	75,691	Laredo Petroleum, Inc.(b)(c)		1,195,918
	18,829	Matador Resources Co.(b)		521,940
	35,753	Matrix Service Co.(b)		785,493
	11,919	Memorial Resource Development Corp.(b)		240,645
	45,288	Mitcham Industries, Inc.(b)		221,911
	14,433	Natural Gas Services Group, Inc.(b)		365,877
	123,160	Newpark Resources, Inc.(b)		1,263,622
	111,391	Nordic American Tankers Ltd.(c)		1,362,312
	161,621	North Atlantic Drilling Ltd. (Norway)(c)		248,896
	92,441	Northern Oil and Gas, Inc.(b)(c)		817,178
	100,591	Nuverra Environmental Solutions, Inc.(b)(c)		408,400
	116,014	Oasis Petroleum, Inc.(b)(c)		2,081,291
	184,957	Ocean Rig UDW, Inc. (Cyprus)		1,389,027
	204,016	Pacific Drilling SA(b)		952,755
	41,123	Pacific Ethanol, Inc.(b)(c)		491,831
	8,734	Panhandle Oil and Gas, Inc., Class A		199,135
	388,883	Parker Drilling Co.(b)		1,458,311
	27,077	PDC Energy, Inc.(b)		1,536,349
	112,206	Penn Virginia Corp.(b)(c)		749,536
	102,580	PetroQuest Energy, Inc.(b)		274,914
	14,430	PHI, Inc.(b)		452,092
	221,358	Pioneer Energy Services Corp.(b)		1,649,117
	98,224	Renewable Energy Group, Inc.(b)		904,643
	529,913	Resolute Energy Corp.(b)(c)		657,092
	6,320	REX American Resources Corp.(b)		399,550
	89,872	Rex Energy Corp.(b)		449,360
	43,694	Rice Energy, Inc.(b)		1,076,183
	94,098	Rosetta Resources, Inc.(b)		2,148,257
	67,931	RPC, Inc.		1,080,782
	10,521	RSP Permian, Inc.(b)		305,319
	51,146	Sanchez Energy Corp.(b)(c)		751,335
	111,166	Scorpio Tankers, Inc. (Monaco)		1,038,290
	17,490	SemGroup Corp., Class A		1,472,483
	102,749	Ship Finance International Ltd. (Norway)		1,619,324
	65,516	StealthGas, Inc. (Greece)(b)		433,061

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Energy (continued)
	614,664	Swift Energy Co.(b)(c)	$	1,856,285
	108,033	Teekay Tankers Ltd., Class A		680,608
	78,718	Tesco Corp.		1,012,314
	249,205	TETRA Technologies, Inc.(b)		1,799,260
	76,766	Triangle Petroleum Corp.(b)(c)		458,293
	146,391	Tsakos Energy Navigation Ltd.		1,343,869
	33,075	Ultra Petroleum Corp.(b)(c)		563,267
	26,269	US Silica Holdings, Inc.(c)		981,147
	102,395	VAALCO Energy, Inc.(b)		252,916
	791,629	Vantage Drilling Co.(b)		315,464
	33,292	Voc Energy Trust(c)		203,414
	154,472	W&T Offshore, Inc.(c)		993,255
	290,545	Warren Resources, Inc.(b)		313,789
	16,193	Westmoreland Coal Co.(b)		460,205
	145,952	Willbros Group, Inc.(b)		364,880
				87,760,912
		Financials—22.3%
	16,840	1st Source Corp.		524,061
	27,889	Acadia Realty Trust REIT		861,770
	42,421	AG Mortgage Investment Trust, Inc. REIT		815,332
	10,736	Agree Realty Corp. REIT		330,454
	20,842	Alexander & Baldwin, Inc.		843,684
	1,281	Alexander’s, Inc. REIT		552,393
	18,463	Altisource Portfolio Solutions SA(b)(c)		447,728
	35,051	Altisource Residential Corp. REIT		671,227
	20,870	American Assets Trust, Inc. REIT		830,626
	65,904	American Capital Mortgage Investment Corp. REIT		1,155,956
	106,457	American Homes 4 Rent, Class A REIT		1,798,059
	9,511	American National Bankshares, Inc.		214,093
	10,074	American National Insurance Co.		1,008,004
	108,431	American Realty Capital Properties, Inc. REIT		979,132
	15,305	American Residential Properties, Inc. REIT(b)		287,122
	13,176	Ameris Bancorp		329,268
	11,026	AMERISAFE, Inc.		498,265
	16,477	AmTrust Financial Services, Inc.(c)		979,887
	336,936	Anworth Mortgage Asset Corp. REIT		1,711,635
	42,989	Apollo Commercial Real Estate Finance, Inc. REIT		734,682
	44,683	Apollo Residential Mortgage, Inc. REIT		708,672
	28,485	Ares Commercial Real Estate Corp. REIT		323,305
	41,131	Argo Group International Holdings Ltd.		2,015,008
	20,846	Arlington Asset Investment Corp., Class A		451,941
	19,366	Armada Hoffler Properties, Inc. REIT		198,889
	424,910	ARMOUR Residential REIT, Inc. REIT		1,274,730
	12,315	Arrow Financial Corp.		320,929
	72,309	Ashford Hospitality Trust, Inc. REIT		655,120
	35,083	Associated Estates Realty Corp. REIT		999,866
	137,353	Astoria Financial Corp.		1,808,939
	9,144	Baldwin & Lyons, Inc., Class B		207,477
	22,974	Banc of California, Inc.		284,878
	6,901	BancFirst Corp.		398,326
	30,201	Banco Latinoamericano de Comercio Exterior SA, Class E (Panama)		959,486

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

31

PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ) (continued)

April 30, 2015

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	52,404	Bancorp, Inc. (The)(b)	$	510,415
	83,754	BancorpSouth, Inc.		2,027,684
	39,392	Bank Mutual Corp.		283,228
	3,806	Bank of Kentucky Financial Corp. (The)		182,269
	4,639	Bank of Marin Bancorp		233,898
	23,925	Bank of the Ozarks, Inc.		927,333
	11,964	Banner Corp.		541,012
	58,044	BBCN Bancorp, Inc.		823,644
	63,546	Beneficial Bancorp, Inc.(b)		737,134
	26,753	Berkshire Hills Bancorp, Inc.		749,352
	128,039	BGC Partners, Inc., Class A		1,284,871
	25,473	Blackstone Mortgage Trust, Inc., Class A REIT		782,785
	17,978	BNC Bancorp		328,099
	3,952	BofI Holding, Inc.(b)		362,833
	25,086	BOK Financial Corp.		1,635,356
	59,452	Boston Private Financial Holdings, Inc.		781,794
	9,689	Bridge Bancorp, Inc.		244,841
	92,523	Brookline Bancorp, Inc.		996,473
	10,526	Bryn Mawr Bank Corp.		316,727
	5,688	C&F Financial Corp.		199,421
	46,667	Calamos Asset Management, Inc., Class A		577,271
	6,772	Camden National Corp.		259,503
	79,892	Campus Crest Communities, Inc. REIT		505,716
	8,951	Capital Bank Financial Corp., Class A(b)		242,751
	177,679	Capstead Mortgage Corp. REIT		2,069,960
	20,670	Cardinal Financial Corp.		426,422
	34,938	Cash America International, Inc.		905,593
	16,409	CatchMark Timber Trust, Inc., Class A REIT		190,344
	47,621	Cathay General Bancorp		1,361,008
	28,739	CBOE Holdings, Inc.		1,617,144
	66,640	Cedar Realty Trust, Inc. REIT		465,814
	22,724	Centerstate Banks, Inc.		276,324
	11,372	Central Pacific Financial Corp.		260,419
	188,327	Chambers Street Properties REIT		1,412,453
	23,609	Charter Financial Corp.		282,600
	10,717	Chatham Lodging Trust REIT		296,218
	34,901	Chemical Financial Corp.		1,078,441
	28,444	Chesapeake Lodging Trust REIT		903,097
	13,038	Citizens & Northern Corp.		258,674
	37,170	Citizens, Inc., Class A(b)(c)		209,639
	15,815	City Holding Co.		727,016
	16,492	Clifton Bancorp, Inc.		225,116
	35,766	CNA Financial Corp.		1,441,370
	11,542	CNB Financial Corp.		198,292
	21,647	CoBiz Financial, Inc.		259,980
	10,857	Cohen & Steers, Inc.		411,046
	53,525	Colony Capital, Inc., Class A REIT		1,386,833
	40,946	Columbia Banking System, Inc.		1,216,096
	36,724	Community Bank System, Inc.		1,283,504
	18,363	Community Trust Bancorp, Inc.		589,085
	9,556	ConnectOne Bancorp, Inc.		183,666
	37,157	Consumer Portfolio Services, Inc.(b)		237,433
	31,085	CorEnergy Infrastructure Trust, Inc. REIT		211,067
	11,135	CoreSite Realty Corp. REIT		535,371

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	116,611	Cousins Properties, Inc. REIT	$	1,135,791
	61,597	Cowen Group, Inc., Class A(b)		344,327
	21,834	Crawford & Co., Class B		178,384
	3,846	Credit Acceptance Corp.(b)		908,425
	55,868	CubeSmart REIT		1,288,875
	19,912	Customers Bancorp, Inc.(b)		501,982
	76,306	CVB Financial Corp.		1,194,189
	16,607	CyrusOne, Inc. REIT		539,395
	157,436	CYS Investments, Inc. REIT		1,404,329
	2,140	Diamond Hill Investment Group, Inc.		389,908
	39,336	Dime Community Bancshares, Inc.		626,229
	42,006	DuPont Fabros Technology, Inc. REIT		1,308,487
	90,555	Dynex Capital, Inc. REIT		724,440
	11,743	Eagle Bancorp, Inc.(b)		432,847
	20,981	EastGroup Properties, Inc. REIT		1,200,113
	24,982	Education Realty Trust, Inc. REIT		839,895
	25,567	eHealth, Inc.(b)		313,451
	24,202	Empire State Realty Trust, Inc., Class A REIT		435,636
	35,001	Employers Holdings, Inc.		854,374
	23,160	Encore Capital Group, Inc.(b)		936,590
	21,144	Enova International, Inc.(b)		391,375
	8,745	Enstar Group Ltd.(b)		1,242,140
	16,588	Enterprise Financial Services Corp.		340,552
	29,060	Equity Lifestyle Properties, Inc. REIT		1,534,949
	42,822	Equity One, Inc. REIT		1,054,706
	14,371	Essent Group Ltd.(b)		358,556
	74,925	EverBank Financial Corp.		1,391,357
	15,740	Evercore Partners, Inc., Class A		759,298
	38,192	Excel Trust, Inc. REIT		605,343
	150,084	EZCORP, Inc., Class A(b)(c)		1,380,773
	13,343	FBL Financial Group, Inc., Class A		777,497
	10,563	FBR & Co.(b)		226,682
	12,137	Federal Agricultural Mortgage Corp., Class C		381,587
	37,399	FelCor Lodging Trust, Inc. REIT		415,503
	26,814	Fidelity & Guaranty Life		600,097
	14,321	Fidelity Southern Corp.		240,593
	7,458	Financial Engines, Inc.(c)		314,504
	13,176	Financial Institutions, Inc.		310,295
	139,243	First BanCorp(b)		836,850
	18,043	First Bancorp/Southern Pines NC		292,838
	71,239	First Busey Corp.		444,531
	18,829	First Cash Financial Services, Inc.(b)		910,194
	5,666	First Citizens BancShares, Inc., Class A		1,361,766
	98,085	First Commonwealth Financial Corp.		884,727
	17,283	First Community Bancshares, Inc.		289,663
	12,760	First Connecticut Bancorp, Inc.		188,593
	10,093	First Defiance Financial Corp.		353,255
	94,546	First Financial Bancorp		1,631,864
	37,970	First Financial Bankshares, Inc.(c)		1,099,611
	12,856	First Financial Corp.		436,461
	44,340	First Industrial Realty Trust, Inc. REIT		874,828
	21,812	First Interstate BancSystem, Inc., Class A		590,233
	27,092	First Merchants Corp.		611,466
	63,906	First Midwest Bancorp, Inc.		1,092,793

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

32

PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ) (continued)

April 30, 2015

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	9,569	First of Long Island Corp. (The)	$	239,416
	80,369	First Potomac Realty Trust REIT		861,556
	41,124	Flagstar Bancorp, Inc.(b)		706,510
	35,503	Flushing Financial Corp.		680,237
	55,894	Forest City Enterprises, Inc., Class A(b)		1,328,041
	58,758	Forestar Group, Inc.(b)		867,268
	100,096	Franklin Street Properties Corp. REIT		1,182,134
	370,343	FXCM, Inc., Class A(c)		744,389
	28,323	Gain Capital Holdings, Inc.		279,831
	3,056	GAMCO Investors, Inc., Class A		236,259
	11,429	Gaming and Leisure Properties, Inc. REIT		408,015
	9,530	German American Bancorp, Inc.		272,653
	31,444	Getty Realty Corp. REIT		546,182
	64,661	Glacier Bancorp, Inc.		1,703,171
	21,303	Gladstone Commercial Corp. REIT		379,406
	9,043	Global Indemnity PLC, Class A(b)		248,230
	64,436	Government Properties Income Trust REIT		1,342,846
	8,384	Gramercy Property Trust, Inc. REIT		229,219
	11,772	Great Southern Bancorp, Inc.		464,052
	36,015	Green Dot Corp., Class A(b)		579,842
	29,583	Greenhill & Co., Inc.		1,170,008
	36,271	Greenlight Capital Re Ltd., Class A(b)		1,102,276
	17,414	Hallmark Financial Services, Inc.(b)		192,947
	21,260	Hanmi Financial Corp.		452,413
	6,416	HCI Group, Inc.		279,609
	76,678	Healthcare Trust of America, Inc., Class A REIT		1,985,193
	17,901	Heritage Financial Corp.		302,527
	141,601	Hersha Hospitality Trust REIT		910,494
	11,762	HFF, Inc., Class A		460,953
	49,763	Hilltop Holdings, Inc.(b)		1,000,734
	23,633	Home BancShares, Inc.		777,053
	11,320	HomeStreet, Inc.(b)		234,098
	23,867	HomeTrust Bancshares, Inc.(b)		373,280
	52,578	Horace Mann Educators Corp.		1,786,075
	9,222	Horizon Bancorp		215,334
	12,657	Howard Hughes Corp. (The)(b)		1,879,185
	21,443	Hudson Pacific Properties, Inc. REIT		646,721
	13,982	Hudson Valley Holding Corp.		345,915
	25,054	IBERIABANK Corp.		1,561,115
	15,795	Independent Bank Corp./MI		209,126
	18,555	Independent Bank Corp./Rockland MA		774,115
	15,566	Infinity Property & Casualty Corp.		1,154,219
	91,680	Inland Real Estate Corp. REIT		943,387
	11,716	Interactive Brokers Group, Inc., Class A		397,758
	67,825	International Bancshares Corp.		1,762,094
	16,109	INTL FCStone, Inc.(b)		517,099
	25,666	Investment Technology Group, Inc.(b)		731,224
	114,109	Investors Bancorp, Inc.		1,351,051
	159,209	Investors Real Estate Trust REIT(c)		1,141,529
	47,118	iStar Financial, Inc. REIT(b)		637,978
	106,173	Janus Capital Group, Inc.		1,900,497
	29,784	JG Wentworth Co. (The), Class A(b)		299,627
	3,787	Kansas City Life Insurance Co.		169,961
	86,053	KCG Holdings, Inc., Class A(b)		1,104,921
	16,068	Kennedy-Wilson Holdings, Inc.		398,165

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	25,611	Kite Realty Group Trust REIT	$	671,008
	49,609	Ladenburg Thalmann Financial Services, Inc.(b)		167,182
	36,877	Lakeland Bancorp, Inc.		418,554
	12,549	Lakeland Financial Corp.		490,038
	26,928	LegacyTexas Financial Group, Inc.		685,318
	18,458	LTC Properties, Inc. REIT		802,185
	82,214	Maiden Holdings Ltd.		1,194,569
	17,682	MainSource Financial Group, Inc.		340,379
	7,984	MarketAxess Holdings, Inc.		685,426
	9,728	Marlin Business Services Corp.		194,268
	40,623	MB Financial, Inc.		1,223,971
	85,131	Meadowbrook Insurance Group, Inc.		727,019
	112,696	Medical Properties Trust, Inc. REIT		1,575,490
	9,606	Mercantile Bank Corp.		190,391
	5,993	Meta Financial Group, Inc.		245,174
	10,876	Metro Bancorp, Inc.		278,861
	139,839	MGIC Investment Corp.(b)		1,457,122
	33,709	Monmouth Real Estate Investment Corp. REIT		348,214
	46,068	Montpelier Re Holdings Ltd. (Bermuda)		1,755,651
	82,243	Nam Tai Property, Inc. (China)(c)		419,439
	6,185	National Bankshares, Inc.		179,427
	11,976	National Health Investors, Inc. REIT		799,039
	9,915	National Interstate Corp.		277,818
	104,561	National Penn Bancshares, Inc.		1,087,434
	2,095	National Western Life Insurance Co., Class A		501,983
	9,814	Nationstar Mortgage Holdings, Inc.(b)		246,331
	14,195	Navigators Group, Inc. (The)(b)		1,107,920
	52,404	NBT Bancorp, Inc.		1,265,557
	19,286	Nelnet, Inc., Class A		863,434
	96,625	New York Mortgage Trust, Inc. REIT(c)		754,641
	103,749	New York REIT, Inc. REIT		1,025,040
	24,949	NewBridge Bancorp, Class A		200,839
	53,414	Newcastle Investment Corp. REIT		284,697
	19,989	Nicholas Financial, Inc.(b)		252,461
	46,666	Northfield Bancorp, Inc.		673,390
	9,175	Northrim Bancorp, Inc.		228,641
	144,340	Northwest Bancshares, Inc.		1,776,825
	12,485	OceanFirst Financial Corp.		209,498
	40,349	OFG Bancorp(c)		568,517
	104,183	Old National Bancorp		1,423,140
	13,137	One Liberty Properties, Inc. REIT		295,320
	37,780	OneBeacon Insurance Group Ltd., Class A		569,722
	16,802	Oppenheimer Holdings, Inc., Class A		401,400
	49,136	Oritani Financial Corp.		732,126
	15,737	Pacific Continental Corp.		203,007
	13,195	Pacific Premier Bancorp, Inc.(b)		206,634
	23,530	PacWest Bancorp		1,061,203
	13,549	Park National Corp.		1,118,605
	28,734	Park Sterling Corp.		192,518
	42,819	Parkway Properties, Inc. REIT		696,665
	10,415	Peapack Gladstone Financial Corp.		217,986
	23,129	Pebblebrook Hotel Trust REIT		993,159
	5,447	Penns Woods Bancorp, Inc.		237,435

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

33

PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ) (continued)

April 30, 2015

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	56,013	Pennsylvania Real Estate Investment Trust REIT	$	1,266,454
	12,979	Peoples Bancorp, Inc.		300,983
	16,259	Phoenix Cos., Inc. (The)(b)		554,595
	11,276	Physicians Realty Trust REIT		187,182
	25,531	PICO Holdings, Inc.(b)		459,813
	16,478	Pinnacle Financial Partners, Inc.		785,177
	17,598	Piper Jaffray Cos.(b)		887,819
	28,356	Post Properties, Inc. REIT		1,621,113
	36,022	Potlatch Corp. REIT		1,329,572
	25,276	PRA Group, Inc.(b)		1,384,493
	42,174	PrivateBancorp, Inc.		1,563,390
	67,492	Provident Financial Services, Inc.		1,214,856
	13,404	PS Business Parks, Inc. REIT		1,023,395
	5,541	QTS Realty Trust, Inc., Class A REIT		200,972
	59,741	Radian Group, Inc.		1,066,974
	94,954	RAIT Financial Trust REIT		615,302
	48,841	Ramco-Gershenson Properties Trust REIT		853,741
	12,518	RE/Max Holdings, Inc., Class A		422,983
	93,835	Redwood Trust, Inc. REIT		1,613,024
	20,799	Regional Management Corp.(b)		335,904
	30,286	Renasant Corp.		899,797
	10,383	Republic Bancorp, Inc., Class A		246,908
	21,108	Resource America, Inc., Class A		180,262
	228,548	Resource Capital Corp. REIT		1,007,897
	39,491	Retail Opportunity Investments Corp. REIT		662,659
	12,577	Rexford Industrial Realty, Inc. REIT		186,894
	21,873	Rouse Properties, Inc. REIT(c)		382,121
	26,617	S&T Bancorp, Inc.		715,997
	36,659	Sabra Health Care REIT, Inc. REIT		1,095,371
	12,593	Safeguard Scientifics, Inc.(b)		226,548
	20,707	Safety Insurance Group, Inc.		1,204,112
	23,388	Sandy Spring Bancorp, Inc.		609,491
	9,139	Saul Centers, Inc. REIT(c)		459,874
	45,513	SEI Investments Co.		2,078,124
	35,523	Select Income REIT		823,778
	70,833	Selective Insurance Group, Inc.		1,908,241
	11,036	Sierra Bancorp		180,770
	22,919	Silver Bay Realty Trust Corp. REIT		354,557
	14,102	Simmons First National Corp., Class A		616,963
	14,881	South State Corp.		1,007,741
	20,677	Southside Bancshares, Inc.(c)		564,896
	17,122	Southwest Bancorp, Inc.		295,012
	15,742	Sovran Self Storage, Inc. REIT		1,374,906
	20,180	Springleaf Holdings, Inc.(b)		1,009,000
	7,536	Square 1 Financial, Inc., Class A(b)		194,881
	26,186	St. Joe Co. (The)(b)		456,946
	21,713	STAG Industrial, Inc., Class A REIT		471,824
	29,780	Starwood Waypoint Residential Trust REIT		766,537
	18,638	State Auto Financial Corp.		440,230
	20,353	State Bank Financial Corp.		407,264
	39,813	Sterling Bancorp		516,773
	32,250	Stewart Information Services Corp.		1,177,125
	10,864	Stock Yards Bancorp, Inc.		378,067
	6,675	Stonegate Bank		191,172
	53,417	Strategic Hotels & Resorts, Inc. REIT(b)		624,979

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	10,005	Suffolk Bancorp	$	239,720
	54,858	Summit Hotel Properties, Inc. REIT		722,480
	17,341	Sun Communities, Inc. REIT		1,076,182
	87,983	Sunstone Hotel Investors, Inc. REIT		1,370,775
	15,114	Talmer Bancorp, Inc., Class A		232,453
	52,198	Tanger Factory Outlet Centers, Inc. REIT		1,752,809
	7,986	Tejon Ranch Co.(b)		197,254
	11,752	Territorial Bancorp, Inc.		271,471
	32,542	Texas Capital Bancshares, Inc.(b)		1,713,662
	44,523	TFS Financial Corp.		650,926
	26,444	Third Point Reinsurance Ltd.(b)		356,465
	9,577	Tompkins Financial Corp.		499,441
	21,348	TowneBank		353,309
	17,551	TriCo Bancshares		409,289
	107,974	TrustCo Bank Corp. NY		720,187
	91,690	Trustmark Corp.		2,182,222
	33,571	UMB Financial Corp.		1,671,500
	23,990	UMH Properties, Inc. REIT		241,579
	123,108	Umpqua Holdings Corp.		2,094,067
	27,452	Union Bankshares Corp.		597,356
	43,961	United Bankshares, Inc.		1,652,054
	33,320	United Community Banks, Inc.		620,085
	49,525	United Community Financial Corp.		266,940
	29,571	United Financial Bancorp, Inc.		377,030
	29,044	United Fire Group, Inc.		867,544
	6,349	Universal Health Realty Income Trust REIT		315,291
	16,081	Universal Insurance Holdings, Inc.		386,266
	21,490	Univest Corp. of Pennsylvania		419,270
	21,551	Urstadt Biddle Properties, Inc., Class A REIT		447,183
	3,500	Virtus Investment Partners, Inc.		467,670
	27,129	Walker & Dunlop, Inc.(b)		519,249
	90,842	Walter Investment Management Corp.(b)(c)		1,599,728
	68,277	Washington Real Estate Investment Trust REIT		1,687,807
	13,160	Washington Trust Bancorp, Inc.		487,183
	24,030	Waterstone Financial, Inc.		306,142
	30,025	WesBanco, Inc.		946,088
	28,382	Westamerica Bancorp.		1,236,036
	30,364	Western Alliance Bancorp(b)		938,855
	73,307	Western Asset Mortgage Capital Corp. REIT(c)		1,071,015
	4,411	Westwood Holdings Group, Inc.		258,441
	20,552	Whitestone REIT		302,114
	48,592	Wilshire Bancorp, Inc.		512,646
	29,547	Winthrop Realty Trust REIT		486,344
	42,800	Wintrust Financial Corp.		2,086,072
	12,250	World Acceptance Corp.(b)(c)		1,036,595
	5,410	WSFS Financial Corp.		385,030
				257,846,419
		Health Care—7.2%
	4,936	Abaxis, Inc.		315,904
	2,900	ABIOMED, Inc.(b)		183,338
	8,031	Acadia Healthcare Co., Inc.(b)		550,123
	21,663	Accuray, Inc.(b)(c)		176,120
	19,003	Aceto Corp.		368,278

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

34

PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ) (continued)

April 30, 2015

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Health Care (continued)
	11,930	Acorda Therapeutics, Inc.(b)	$	358,735
	29,035	Affymetrix, Inc.(b)		352,195
	21,041	Air Methods Corp.(b)		961,574
	6,500	Akorn, Inc.(b)		270,660
	11,519	Albany Molecular Research, Inc.(b)		208,033
	13,141	Align Technology, Inc.(b)		773,216
	13,768	Alkermes PLC(b)		762,334
	11,146	Alliance HealthCare Services, Inc.(b)		237,075
	11,047	Almost Family, Inc.(b)		478,114
	1,843	Alnylam Pharmaceuticals, Inc.(b)		187,746
	34,762	Amedisys, Inc.(b)		966,731
	25,248	AMN Healthcare Services, Inc.(b)		575,907
	32,668	Amsurg Corp.(b)		2,048,937
	7,233	Analogic Corp.		611,189
	24,196	AngioDynamics, Inc.(b)		403,831
	4,002	Anika Therapeutics, Inc.(b)		136,548
	23,114	ARIAD Pharmaceuticals, Inc.(b)(c)		200,398
	4,621	athenahealth, Inc.(b)		566,812
	950	Atrion Corp.		308,608
	10,423	BioMarin Pharmaceutical, Inc.(b)		1,167,897
	20,632	Bio-Reference Laboratories, Inc.(b)		683,332
	132,509	BioScrip, Inc.(b)(c)		622,792
	13,167	Bio-Techne Corp.		1,263,505
	70,344	Bruker Corp.(b)		1,333,722
	11,908	Cambrex Corp.(b)		458,339
	7,158	Cantel Medical Corp.		320,607
	14,852	Capital Senior Living Corp.(b)		388,677
	16,171	Catalent, Inc.(b)		465,240
	9,963	Celldex Therapeutics, Inc.(b)		239,112
	6,361	Cepheid, Inc.(b)		356,852
	20,496	Charles River Laboratories International, Inc.(b)		1,417,503
	9,783	Chemed Corp.		1,127,491
	15,420	Civitas Solutions, Inc.(b)		289,125
	3,314	Clovis Oncology, Inc.(b)		266,313
	8,785	Computer Programs & Systems, Inc.		459,719
	17,544	CONMED Corp.		881,235
	8,674	CorVel Corp.(b)		310,009
	30,055	Cross Country Healthcare, Inc.(b)		333,611
	18,979	CryoLife, Inc.		193,586
	8,220	Cyberonics, Inc.(b)		500,680
	10,360	Cynosure, Inc., Class A(b)		346,231
	12,873	Emergent Biosolutions, Inc.(b)		382,199
	7,962	Ensign Group, Inc. (The)		335,280
	8,569	Exactech, Inc.(b)		187,233
	12,294	ExamWorks Group, Inc.(b)		503,439
	111,887	Five Star Quality Care, Inc.(b)		475,520
	43,993	Genesis Healthcare, Inc., Class A(b)		303,992
	24,651	Globus Medical, Inc., Class A(b)		588,912
	18,259	Greatbatch, Inc.(b)		984,525
	32,715	Haemonetics Corp.(b)		1,325,939
	53,779	Hanger, Inc.(b)		1,201,423
	31,343	Healthways, Inc.(b)		545,368
	2,016	HeartWare International, Inc.(b)		152,631
	32,479	Hill-Rom Holdings, Inc.		1,622,001
	47,515	HMS Holdings Corp.(b)		808,230

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Health Care (continued)
	25,987	ICON PLC (Ireland)(b)	$	1,672,004
	7,239	ICU Medical, Inc.(b)		610,754
	11,853	IDEXX Laboratories, Inc.(b)		1,486,011
	34,601	Impax Laboratories, Inc.(b)		1,566,041
	66,538	IMS Health Holdings, Inc.(b)		1,835,783
	11,916	Infinity Pharmaceuticals, Inc.(b)		150,976
	5,899	Insulet Corp.(b)		176,085
	16,238	Integra LifeSciences Holdings Corp.(b)		954,470
	59,013	Invacare Corp.		1,184,391
	15,151	IPC Healthcare, Inc.(b)		741,187
	5,141	Isis Pharmaceuticals, Inc.(b)		291,598
	9,194	Jazz Pharmaceuticals PLC(b)		1,642,968
	12,208	Landauer, Inc.		393,830
	15,118	LHC Group, Inc.(b)		484,683
	20,950	Luminex Corp.(b)		325,144
	31,783	Masimo Corp.(b)		1,072,994
	51,057	MedAssets, Inc.(b)		1,033,394
	36,942	Medicines Co. (The)(b)		946,085
	6,355	Medidata Solutions, Inc.(b)		339,548
	36,847	Meridian Bioscience, Inc.		652,929
	33,547	Merit Medical Systems, Inc.(b)		651,147
	17,204	Momenta Pharmaceuticals, Inc.(b)		300,210
	32,529	Myriad Genetics, Inc.(b)(c)		1,074,433
	11,510	Natus Medical, Inc.(b)		434,042
	8,685	Neogen Corp.(b)		386,830
	18,200	NuVasive, Inc.(b)		814,086
	14,002	NxStage Medical, Inc.(b)		256,657
	13,860	Omnicell, Inc.(b)		492,446
	26,084	OPKO Health, Inc.(b)(c)		358,916
	23,478	OraSure Technologies, Inc.(b)		147,911
	19,113	Orthofix International NV(b)		617,541
	25,787	PAREXEL International Corp.(b)		1,639,409
	2,250	Pharmacyclics, Inc.(b)		576,450
	65,812	PharMerica Corp.(b)		1,886,172
	5,432	Portola Pharmaceuticals, Inc.(b)		193,868
	9,354	Premier, Inc., Class A(b)		354,517
	27,983	Prestige Brands Holdings, Inc.(b)		1,098,333
	17,714	Providence Service Corp. (The)(b)		753,199
	46,176	Quality Systems, Inc.		720,115
	11,186	Quidel Corp.(b)		260,634
	58,367	RadNet, Inc.(b)		489,115
	4,787	Regeneron Pharmaceuticals, Inc.(b)		2,189,861
	52,308	Rigel Pharmaceuticals, Inc.(b)		222,832
	40,330	RTI Surgical, Inc.(b)		225,848
	6,702	Sagent Pharmaceuticals, Inc.(b)		156,224
	14,051	Sarepta Therapeutics, Inc.(b)(c)		171,422
	22,961	SciClone Pharmaceuticals, Inc.(b)		187,591
	6,073	Seattle Genetics, Inc.(b)		208,547
	69,429	Select Medical Holdings Corp.		1,010,192
	22,659	Sirona Dental Systems, Inc.(b)		2,101,622
	6,997	Spectranetics Corp. (The)(b)		179,473
	42,680	Spectrum Pharmaceuticals, Inc.(b)(c)		241,142
	9,081	Surgical Care Affiliates, Inc.(b)		342,354
	7,462	SurModics, Inc.(b)		188,192
	2,372	Synageva BioPharma Corp.(b)		218,129
	19,437	Syneron Medical Ltd. (Israel)(b)		240,241

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

35

PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ) (continued)

April 30, 2015

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Health Care (continued)
	27,316	Team Health Holdings, Inc.(b)	$	1,627,214
	25,763	Thoratec Corp.(b)		1,033,354
	16,004	Tornier NV(b)		414,023
	100,575	Triple-S Management Corp., Class B(b)		1,882,764
	58,230	Universal American Corp.(b)		581,718
	7,401	US Physical Therapy, Inc.		349,031
	5,959	Vascular Solutions, Inc.(b)		191,046
	12,412	Vertex Pharmaceuticals, Inc.(b)		1,530,151
	32,894	West Pharmaceutical Services, Inc.		1,752,592
	17,754	Wright Medical Group, Inc.(b)		450,419
				83,607,564
		Industrials—16.3%
	30,182	A.O. Smith Corp.		1,928,630
	13,240	AAON, Inc.		317,363
	58,764	AAR Corp.		1,777,023
	189,760	ACCO Brands Corp.(b)		1,493,411
	70,724	Accuride Corp.(b)		288,554
	60,762	Actuant Corp., Class A		1,447,351
	12,531	Acuity Brands, Inc.		2,092,050
	9,379	Advanced Drainage Systems, Inc.		262,612
	9,616	Advisory Board Co. (The)(b)		498,974
	78,063	Aegion Corp.(b)		1,437,920
	34,084	AerCap Holdings NV (Netherlands)(b)		1,591,041
	31,730	Aerojet Rocketdyne Holdings, Inc.(b)		623,812
	11,737	Aerovironment, Inc.(b)		300,467
	52,981	Air Lease Corp.		2,046,656
	79,566	Air Transport Services Group, Inc.(b)		741,555
	88,010	Aircastle Ltd.		2,110,480
	11,418	Alamo Group, Inc.		705,404
	18,016	Alaska Air Group, Inc.		1,154,105
	19,666	Albany International Corp., Class A		770,907
	493	Allegiant Travel Co.		75,804
	22,355	Altra Industrial Motion Corp.		589,501
	5,153	AMERCO		1,659,472
	35,380	Ameresco, Inc., Class A(b)		237,754
	5,668	American Railcar Industries, Inc.(c)		300,631
	9,248	American Science & Engineering, Inc.		346,060
	5,371	American Woodmark Corp.(b)		272,310
	13,003	Apogee Enterprises, Inc.		684,218
	39,838	Applied Industrial Technologies, Inc.		1,664,033
	30,816	ARC Document Solutions, Inc.(b)		263,169
	25,042	ArcBest Corp.		893,999
	6,276	Argan, Inc.		202,778
	17,547	Astec Industries, Inc.		738,378
	3,686	Astronics Corp.(b)		248,105
	3,735	Atlas Air Worldwide Holdings, Inc.(b)		182,044
	18,379	AZZ, Inc.		852,602
	189,512	Baltic Trading Ltd.(c)		269,107
	36,588	Barnes Group, Inc.		1,467,179
	6,249	Barrett Business Services, Inc.		277,893
	64,958	Beacon Roofing Supply, Inc.(b)		1,930,552
	42,643	Blount International, Inc.(b)		565,446
	56,432	Brady Corp., Class A		1,502,784
	78,582	Briggs & Stratton Corp.		1,536,278
	31,083	Builders FirstSource, Inc.(b)		396,619
	4,909	Caesarstone Sdot-Yam Ltd. (Israel)		290,809

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrials (continued)
	14,308	CAI International, Inc.(b)	$	340,817
	66,356	Casella Waste Systems, Inc., Class A(b)		363,631
	80,326	CBIZ, Inc.(b)		726,147
	24,901	CDI Corp.		339,650
	21,021	Celadon Group, Inc.		543,183
	190,024	Cenveo, Inc.(b)(c)		376,248
	44,471	Chart Industries, Inc.(b)		1,803,299
	14,116	CIRCOR International, Inc.		771,298
	24,546	CLARCOR, Inc.		1,595,490
	18,776	Columbus McKinnon Corp.		476,159
	49,604	Comfort Systems USA, Inc.		1,026,307
	79,526	Commercial Vehicle Group, Inc.(b)		458,070
	8,997	Continental Building Products, Inc.(b)		198,024
	1,786	Copa Holdings SA, Class A (Panama)		198,050
	43,124	Copart, Inc.(b)		1,533,921
	11,379	Corporate Executive Board Co. (The)		953,902
	25,632	Costamare, Inc. (Greece)(c)		518,535
	14,074	Covenant Transportation Group, Inc., Class A(b)		428,835
	10,648	CRA International, Inc.(b)		310,922
	17,620	Cubic Corp.		873,600
	151,234	Diana Shipping, Inc. (Greece)(b)(c)		945,213
	50,807	DigitalGlobe, Inc.(b)		1,634,461
	17,817	Douglas Dynamics, Inc.		387,520
	18,594	Ducommun, Inc.(b)		565,258
	11,944	DXP Enterprises, Inc.(b)		538,077
	32,428	Dycom Industries, Inc.(b)		1,491,039
	15,091	Dynamic Materials Corp.		202,068
	38,913	Eagle Bulk Shipping, Inc.(b)(c)		326,091
	10,701	Echo Global Logistics, Inc.(b)		309,259
	22,619	Encore Wire Corp.		1,018,081
	23,038	Engility Holdings, Inc.		642,069
	58,377	Ennis, Inc.		897,838
	18,557	EnPro Industries, Inc.		1,187,834
	23,209	ESCO Technologies, Inc.		851,770
	4,368	Exponent, Inc.		387,048
	38,995	Federal Signal Corp.		613,001
	14,319	Forward Air Corp.		721,248
	26,163	Franklin Electric Co., Inc.		946,054
	8,657	FreightCar America, Inc.		225,861
	46,077	Furmanite Corp.(b)		336,362
	16,767	G&K Services, Inc., Class A		1,183,750
	45,411	Gibraltar Industries, Inc.(b)		752,006
	58,285	Global Brass & Copper Holdings, Inc.		888,263
	33,407	Global Power Equipment Group, Inc.		405,895
	43,992	Golden Ocean Group Ltd. (Bermuda)(c)		219,080
	9,412	GP Strategies Corp.(b)		306,737
	26,144	Graco, Inc.		1,872,433
	547,015	GrafTech International Ltd.(b)		2,647,553
	36,781	Granite Construction, Inc.		1,276,669
	88,159	Great Lakes Dredge & Dock Corp.(b)		511,322
	16,468	Greenbrier Cos., Inc. (The)(c)		950,039
	57,532	Griffon Corp.		967,113
	50,652	H&E Equipment Services, Inc.		1,252,117
	18,352	Hardinge, Inc.		197,468
	5,574	Hawaiian Holdings, Inc.(b)		128,648

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

36

PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ) (continued)

April 30, 2015

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrials (continued)
	37,638	Healthcare Services Group, Inc.	$	1,139,302
	32,725	Heartland Express, Inc.		684,607
	7,271	HEICO Corp.		406,013
	18,966	Heidrick & Struggles International, Inc.		456,322
	41,087	Herman Miller, Inc.		1,126,195
	91,420	Hill International, Inc.(b)		351,967
	58,537	Hillenbrand, Inc.		1,720,402
	33,362	HNI Corp.		1,556,004
	26,619	Houston Wire & Cable Co.		251,283
	52,554	Hub Group, Inc., Class A(b)		2,096,905
	13,074	Huron Consulting Group, Inc.(b)		792,546
	11,812	Hyster-Yale Materials Handling, Inc., Class A		866,292
	16,858	ICF International, Inc.(b)		649,033
	75,149	InnerWorkings, Inc.(b)		475,693
	20,205	Insperity, Inc.		973,073
	12,198	Insteel Industries, Inc.		247,131
	44,629	Interface, Inc.		969,788
	19,312	International Shipholding Corp.		212,046
	81,408	JetBlue Airways Corp.(b)		1,671,306
	21,348	John Bean Technologies Corp.		823,819
	8,749	Kadant, Inc.		445,849
	33,376	Kaman Corp.		1,392,113
	98,936	Kelly Services, Inc., Class A		1,624,529
	34,372	KEYW Holding Corp. (The)(b)(c)		331,690
	20,574	Kforce, Inc.		467,853
	56,328	Kimball International, Inc., Class B		570,039
	31,680	Knight Transportation, Inc.		915,552
	37,018	Knoll, Inc.		842,900
	33,406	Korn/Ferry International		1,053,291
	101,588	Kratos Defense & Security Solutions, Inc.(b)		555,686
	26,504	Landstar System, Inc.		1,651,464
	106,033	Layne Christensen Co.(b)(c)		712,542
	8,715	LB Foster Co., Class A		372,392
	20,161	Lennox International, Inc.		2,136,260
	6,553	Lindsay Corp.(c)		518,932
	16,007	LMI Aerospace, Inc.(b)		180,719
	22,943	LSI Industries, Inc.		205,569
	12,599	Lydall, Inc.(b)		338,157
	16,519	Manitex International, Inc.(b)		163,703
	20,805	Marten Transport Ltd.		463,119
	20,542	Masonite International Corp.(b)		1,359,880
	7,784	Matson, Inc.		315,252
	19,143	Matthews International Corp., Class A		929,010
	26,074	McGrath RentCorp		863,310
	134,126	Meritor, Inc.(b)		1,759,733
	13,367	Middleby Corp. (The)(b)		1,354,612
	14,810	Miller Industries, Inc.		331,448
	20,139	Mistras Group, Inc.(b)		361,696
	29,092	Mobile Mini, Inc.		1,121,206
	27,327	MSA Safety, Inc.		1,249,937
	41,049	Mueller Industries, Inc.		1,438,357
	74,114	Mueller Water Products, Inc., Class A		693,707
	7,827	Multi-Color Corp.		491,379
	30,313	MYR Group, Inc.(b)		888,777

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrials (continued)
	11,794	National Presto Industries, Inc.(c)	$	738,069
	82,087	Navigant Consulting, Inc.(b)		1,186,978
	284,946	Navios Maritime Holdings, Inc. (Greece)(c)		1,079,945
	15,390	NCI Building Systems, Inc.(b)		238,237
	8,593	NN, Inc.		216,200
	22,633	Nordson Corp.		1,802,718
	13,502	Nortek, Inc.(b)		1,142,539
	19,864	Northwest Pipe Co.(b)		481,503
	24,521	On Assignment, Inc.(b)		825,132
	41,081	Orion Marine Group, Inc.(b)		345,902
	9,273	Park-Ohio Holdings Corp.		429,618
	32,000	Performant Financial Corp.(b)		95,040
	15,666	Ply Gem Holdings, Inc.(b)		212,744
	18,127	Polypore International, Inc.(b)		1,061,517
	17,895	Powell Industries, Inc.		593,935
	17,739	PowerSecure International, Inc.(b)		232,558
	4,615	Preformed Line Products Co.		193,599
	29,399	Primoris Services Corp.		565,343
	78,571	Quad Graphics, Inc., Class A		1,692,419
	38,846	Quality Distribution, Inc.(b)		385,352
	30,445	Quanex Building Products Corp.		587,588
	33,930	Raven Industries, Inc.		676,564
	13,859	RBC Bearings, Inc.		1,011,568
	40,068	Republic Airways Holdings, Inc.(b)		490,432
	31,358	Resources Connection, Inc.		494,202
	28,935	Roadrunner Transportation Systems, Inc.(b)		708,039
	40,992	Rollins, Inc.		1,016,602
	15,530	RPX Corp.(b)		241,647
	55,222	Rush Enterprises, Inc., Class A(b)		1,443,503
	129,583	Safe Bulkers, Inc. (Greece)(c)		463,907
	20,898	Saia, Inc.(b)		851,594
	69,222	Seaspan Corp.		1,371,980
	23,690	Simpson Manufacturing Co., Inc.		776,558
	51,627	SkyWest, Inc.		704,709
	3,303	SolarCity Corp.(b)(c)		198,345
	23,901	SP Plus Corp.(b)		543,987
	8,932	Sparton Corp.(b)		230,178
	1,513	Spirit Airlines, Inc.(b)		103,595
	7,930	Standex International Corp.		641,299
	42,750	Star Bulk Carriers Corp. (Greece)(b)(c)		168,863
	89,373	Steelcase, Inc., Class A		1,570,284
	20,459	Stock Building Supply Holdings, Inc.(b)		375,832
	7,949	Sun Hydraulics Corp.		309,296
	63,150	Swift Transportation Co., Class A(b)		1,528,230
	46,809	TAL International Group, Inc.(b)		1,804,019
	7,048	TASER International, Inc.(b)		212,779
	18,020	Team, Inc.(b)		704,222
	10,490	Tennant Co.		674,402
	81,987	Tetra Tech, Inc.		2,222,668
	25,483	Textainer Group Holdings Ltd.(c)		772,135
	18,573	Thermon Group Holdings, Inc.(b)		432,194
	118,440	Titan International, Inc.		1,230,592
	72,935	Titan Machinery, Inc.(b)(c)		1,068,498
	25,951	Toro Co. (The)		1,739,755
	6,791	Trex Co., Inc.(b)		318,634

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

37

PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ) (continued)

April 30, 2015

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrials (continued)
	45,542	TriMas Corp.(b)	$	1,282,918
	13,793	TriNet Group, Inc.(b)		483,031
	51,829	TrueBlue, Inc.(b)		1,491,639
	14,083	Twin Disc, Inc.		253,353
	9,791	UniFirst Corp.		1,108,635
	26,240	Universal Forest Products, Inc.		1,451,597
	8,608	Universal Truckload Services, Inc.		182,834
	9,775	US Ecology, Inc.		458,545
	8,825	USA Truck, Inc.(b)		216,742
	48,874	USG Corp.(b)		1,297,116
	41,964	Veritiv Corp.(b)		1,667,649
	29,763	Viad Corp.		790,803
	4,003	VSE Corp.		284,773
	64,667	Wabash National Corp.(b)		906,631
	21,063	Wabtec Corp.		1,980,975
	4,383	WageWorks, Inc.(b)		220,903
	21,006	Watts Water Technologies, Inc., Class A		1,145,877
	60,241	Werner Enterprises, Inc.		1,618,676
	66,144	Wesco Aircraft Holdings, Inc.(b)		1,037,138
	19,620	West Corp.		607,239
	43,141	Woodward, Inc.		2,029,784
	14,328	Xerium Technologies, Inc.(b)		254,752
	8,501	XPO Logistics, Inc.(b)		412,299
				188,619,520
		Information Technology—17.1%
	29,737	3D Systems Corp.(b)(c)		746,101
	51,049	ACI Worldwide, Inc.(b)		1,175,658
	24,848	Actua Corp.(b)		359,551
	78,958	Acxiom Corp.(b)		1,378,607
	44,349	ADTRAN, Inc.		736,637
	22,700	Advanced Energy Industries, Inc.(b)		555,242
	7,397	Advent Software, Inc.		321,104
	18,973	Agilysys, Inc.(b)		178,536
	29,660	Alpha & Omega Semiconductor Ltd.(b)		242,915
	26,269	American Software, Inc., Class A		255,072
	38,177	Applied Micro Circuits Corp.(b)		205,010
	67,207	ARRIS Group, Inc.(b)		2,263,196
	25,884	Aruba Networks, Inc.(b)		637,005
	5,530	Aspen Technology, Inc.(b)		245,477
	205,799	Atmel Corp.		1,559,956
	10,276	AVG Technologies NV(b)		245,802
	26,160	Avid Technology, Inc.(b)		423,530
	61,899	AVX Corp.		852,349
	94,227	Axcelis Technologies, Inc.(b)		237,452
	7,161	Badger Meter, Inc.		445,557
	45,664	Bankrate, Inc.(b)		566,234
	13,535	Bel Fuse, Inc., Class B		277,874
	18,907	Belden, Inc.		1,587,243
	27,540	Black Box Corp.		548,046
	14,892	Blackbaud, Inc.		752,493
	16,366	Blackhawk Network Holdings, Inc., Class B(b)		600,796
	50,863	Blucora, Inc.(b)		695,297
	14,763	Bottomline Technologies (de), Inc.(b)		395,058
	8,231	BroadSoft, Inc.(b)		260,429
	52,044	Brooks Automation, Inc.		559,993

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	29,396	Cabot Microelectronics Corp.(b)	$	1,390,431
	107,222	Cadence Design Systems, Inc.(b)		1,999,690
	11,117	CalAmp Corp.(b)		219,116
	37,647	Calix, Inc.(b)		278,211
	32,326	Canadian Solar, Inc. (Canada)(b)		1,144,340
	21,092	Cardtronics, Inc.(b)		795,801
	5,252	Cass Information Systems, Inc.		274,522
	5,124	Cavium, Inc.(b)		331,984
	10,356	CEVA, Inc.(b)		214,369
	54,668	Checkpoint Systems, Inc.		566,360
	27,187	ChipMOS TECHNOLOGIES Bermuda Ltd. (Taiwan)		628,020
	98,845	Ciber, Inc.(b)		348,923
	35,901	Ciena Corp.(b)		764,691
	10,660	Cimpress NV(b)		894,800
	37,224	Cirrus Logic, Inc.(b)		1,257,427
	19,881	Cognex Corp.(b)		892,458
	18,564	Coherent, Inc.(b)		1,113,840
	29,392	Cohu, Inc.		307,734
	15,725	CommVault Systems, Inc.(b)		719,419
	23,757	Computer Task Group, Inc.		195,520
	5,699	comScore, Inc.(b)		298,400
	24,384	Comtech Telecommunications Corp.		704,698
	22,333	Comverse, Inc.(b)		547,158
	8,382	Constant Contact, Inc.(b)		292,113
	87,515	Convergys Corp.		1,984,840
	5,194	CoStar Group, Inc.(b)		1,061,809
	18,262	Cray, Inc.(b)		512,980
	25,229	CSG Systems International, Inc.		734,668
	28,054	CTS Corp.		503,289
	70,694	Cypress Semiconductor Corp.(b)		941,644
	53,153	Daktronics, Inc.		570,332
	27,509	Datalink Corp.(b)		318,004
	17,578	Dealertrack Technologies, Inc.(b)		690,991
	3,368	Demandware, Inc.(b)		207,469
	33,610	DHI Group, Inc.(b)		255,436
	34,942	Digi International, Inc.(b)		352,914
	29,228	Diodes, Inc.(b)		780,972
	34,366	Dolby Laboratories, Inc., Class A		1,383,575
	15,887	DSP Group, Inc.(b)		180,794
	8,516	DTS, Inc.(b)		305,299
	241,082	EarthLink Holdings Corp.		1,140,318
	14,606	Ebix, Inc.(c)		398,598
	24,292	Electro Rent Corp.		263,325
	62,534	Electro Scientific Industries, Inc.		356,444
	26,091	Electronics for Imaging, Inc.(b)		1,088,777
	3,321	Ellie Mae, Inc.(b)		182,655
	33,167	EMCORE Corp.(b)		180,760
	119,785	Emulex Corp.(b)		960,676
	20,582	EnerNOC, Inc.(b)		227,431
	76,098	Entegris, Inc.(b)		1,012,864
	117,242	Entropic Communications, Inc.(b)		354,071
	3,449	Envestnet, Inc.(b)		176,796
	4,797	EPAM Systems, Inc.(b)		310,414
	26,101	Epiq Systems, Inc.		467,469
	8,009	ePlus, Inc.(b)		664,427

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

38

PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ) (continued)

April 30, 2015

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	26,585	Euronet Worldwide, Inc.(b)	$	1,554,691
	27,190	EVERTEC, Inc.		563,649
	20,169	Exar Corp.(b)		199,068
	15,125	ExlService Holdings, Inc.(b)		520,754
	80,818	Extreme Networks, Inc.(b)		203,661
	30,974	Fabrinet (Thailand)(b)		560,939
	10,605	FactSet Research Systems, Inc.		1,669,121
	10,546	Fair Isaac Corp.		932,899
	7,403	FARO Technologies, Inc.(b)		294,861
	15,743	FEI Co.		1,187,967
	65,951	Finisar Corp.(b)		1,340,784
	10,631	FireEye, Inc.(b)		439,060
	11,643	FleetCor Technologies, Inc.(b)		1,873,242
	6,676	Fleetmatics Group PLC(b)		304,292
	30,109	FormFactor, Inc.(b)		239,969
	9,057	Forrester Research, Inc.		315,093
	21,573	Fortinet, Inc.(b)		814,165
	37,115	Freescale Semiconductor Ltd.(b)		1,450,825
	18,119	Gartner, Inc.(b)		1,503,515
	51,692	Global Cash Access Holdings, Inc.(b)		382,521
	22,667	Global Payments, Inc.		2,273,047
	9,077	GrubHub, Inc.(b)		373,700
	26,294	GSI Group, Inc.(b)		349,184
	4,452	Guidewire Software, Inc.(b)		222,377
	22,876	Hackett Group, Inc. (The)		219,610
	86,950	Harmonic, Inc.(b)		609,520
	26,179	Heartland Payment Systems, Inc.		1,332,511
	56,745	Higher One Holdings, Inc.(b)		159,453
	20,115	Hollysys Automation Technologies Ltd. (China)		441,927
	16,362	HomeAway, Inc.(b)		457,318
	65,400	Hutchinson Technology, Inc.(b)		154,344
	31,930	IAC/InterActiveCorp.		2,229,353
	7,735	IGATE Corp.(b)		367,877
	56,743	II-VI, Inc.(b)		1,009,458
	48,220	Imation Corp.(b)		197,220
	27,799	Infinera Corp.(b)		522,621
	37,247	Informatica Corp.(b)		1,790,463
	10,317	Inphi Corp.(b)		221,300
	47,959	Integrated Device Technology, Inc.(b)		872,374
	25,077	Integrated Silicon Solution, Inc.		465,178
	5,193	Interactive Intelligence Group, Inc.(b)		228,388
	22,757	InterDigital, Inc.		1,245,263
	37,337	Internap Corp.(b)		350,968
	102,792	Intersil Corp., Class A		1,372,273
	20,079	InterXion Holding NV (Netherlands)(b)		611,406
	23,329	Intralinks Holdings, Inc.(b)		228,624
	14,452	InvenSense, Inc.(b)(c)		215,624
	7,102	IPG Photonics Corp.(b)		629,095
	54,588	Itron, Inc.(b)		1,957,526
	48,685	Ixia(b)		583,246
	19,285	IXYS Corp.		218,113
	16,997	j2 Global, Inc.		1,179,082
	25,589	Jack Henry & Associates, Inc.		1,701,924
	112,499	JDS Uniphase Corp.(b)		1,424,237
	81,768	Kemet Corp.(b)		353,238

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	72,580	Kulicke & Soffa Industries, Inc. (Singapore)(b)	$	1,096,684
	13,540	KVH Industries, Inc.(b)		182,655
	80,320	Lattice Semiconductor Corp.(b)		476,298
	61,442	Lionbridge Technologies, Inc.(b)		341,003
	45,330	Liquidity Services, Inc.(b)		424,289
	10,339	Littelfuse, Inc.		1,013,119
	18,762	LivePerson, Inc.(b)		176,363
	3,642	LogMeIn, Inc.(b)		233,744
	143,036	Magnachip Semiconductor Corp. (South Korea)(b)		783,837
	10,188	Manhattan Associates, Inc.(b)		535,481
	44,574	ManTech International Corp., Class A		1,302,898
	17,563	MAXIMUS, Inc.		1,124,208
	29,001	Maxwell Technologies, Inc.(b)(c)		162,406
	15,031	Mellanox Technologies Ltd. (Israel)(b)		698,791
	56,160	Mentor Graphics Corp.		1,343,909
	3,246	MercadoLibre, Inc. (Argentina)		462,003
	24,690	Mercury Systems, Inc.(b)		340,969
	17,352	Methode Electronics, Inc.		736,766
	24,029	Micrel, Inc.		326,794
	50,696	Microsemi Corp.(b)		1,691,219
	3,054	MicroStrategy, Inc., Class A(b)		556,194
	145,342	Millennial Media, Inc.(b)		225,280
	33,393	MKS Instruments, Inc.		1,162,410
	120,114	ModusLink Global Solutions, Inc.(b)		420,399
	80,420	MoneyGram International, Inc.(b)		623,255
	7,416	Monolithic Power Systems, Inc.		384,371
	6,330	Monotype Imaging Holdings, Inc.		205,155
	177,797	Monster Worldwide, Inc.(b)		1,047,224
	8,782	MTS Systems Corp.		619,834
	13,310	Multi-Fineline Electronix, Inc.(b)		311,188
	11,797	Nanometrics, Inc.(b)		182,382
	52,026	National Instruments Corp.		1,487,944
	49,585	Net 1 UEPS Technologies, Inc. (South Africa)(b)		677,827
	46,134	NETGEAR, Inc.(b)		1,396,476
	18,150	NetScout Systems, Inc.(b)(c)		745,965
	1,943	NetSuite, Inc.(b)		185,693
	65,335	NeuStar, Inc., Class A(b)(c)		1,960,050
	30,705	Newport Corp.(b)		585,544
	29,529	NIC, Inc.		501,993
	36,162	Novatel Wireless, Inc.(b)		219,142
	163,344	Oclaro, Inc.(b)(c)		313,620
	54,848	OmniVision Technologies, Inc.(b)		1,529,985
	41,965	Orbotech Ltd. (Israel)(b)		753,272
	11,658	OSI Systems, Inc.(b)		783,534
	27,059	Pandora Media, Inc.(b)		482,733
	34,291	Park Electrochemical Corp.		744,801
	13,788	PC Connection, Inc.		334,911
	10,217	Pegasystems, Inc.		220,074
	21,524	Perficient, Inc.(b)		444,040
	15,663	Pericom Semiconductor Corp.		196,101
	98,658	Photronics, Inc.(b)		865,231
	22,087	Plantronics, Inc.		1,176,574
	47,214	Plexus Corp.(b)		2,032,563

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

39

PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ) (continued)

April 30, 2015

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	92,900	PMC-Sierra, Inc.(b)	$	783,147
	130,860	Polycom, Inc.(b)		1,707,723
	9,203	Power Integrations, Inc.		455,456
	43,058	PRGX Global, Inc.(b)		182,566
	33,487	Progress Software Corp.(b)		884,057
	51,921	PTC, Inc.(b)		1,990,651
	12,596	Qlik Technologies, Inc.(b)		438,215
	79,133	QLogic Corp.(b)		1,163,255
	255,853	Quantum Corp.(b)		514,265
	49,687	QuinStreet, Inc.(b)		269,800
	37,236	Rackspace Hosting, Inc.(b)		2,007,020
	16,635	Radware Ltd. (Israel)(b)		393,750
	37,334	Rambus, Inc.(b)		516,703
	18,251	RealD, Inc.(b)		224,122
	36,124	RealNetworks, Inc.(b)		237,335
	14,882	RealPage, Inc.(b)		295,259
	17,306	RetailMeNot, Inc., Series 1(b)(c)		318,084
	35,067	Rofin-Sinar Technologies, Inc.(b)		829,685
	10,161	Rogers Corp.(b)		738,806
	18,967	Rosetta Stone, Inc.(b)		158,564
	77,252	Rovi Corp.(b)		1,429,935
	49,964	Rubicon Technology, Inc.(b)(c)		191,862
	27,491	Rudolph Technologies, Inc.(b)		352,710
	19,166	Sabre Corp.		477,042
	57,302	ScanSource, Inc.(b)		2,283,485
	36,416	Seachange International, Inc.(b)		244,351
	26,818	Semtech Corp.(b)		624,591
	28,748	ShoreTel, Inc.(b)		200,086
	33,603	Sigma Designs, Inc.(b)		268,488
	37,491	Silicon Graphics International Corp.(b)		304,052
	20,733	Silicon Laboratories, Inc.(b)		1,071,274
	35,430	SINA Corp. (China)(b)		1,558,743
	33,665	Sohu.com, Inc. (China)(b)		2,237,039
	13,092	SolarWinds, Inc.(b)		638,628
	27,891	Solera Holdings, Inc.		1,353,271
	5,457	Splunk, Inc.(b)		362,045
	22,116	SS&C Technologies Holdings, Inc.		1,330,720
	3,639	Stamps.com, Inc.(b)		225,218
	27,882	Stratasys Ltd.(b)(c)		1,044,181
	26,530	SunEdison Semiconductor Ltd.(b)		592,415
	51,868	SunEdison, Inc.(b)(c)		1,313,298
	24,803	SunPower Corp.(b)(c)		798,409
	16,672	Super Micro Computer, Inc.(b)		479,653
	53,235	Sykes Enterprises, Inc.(b)		1,332,472
	11,308	Synaptics, Inc.(b)		958,014
	10,127	Synchronoss Technologies, Inc.(b)		464,627
	12,419	Syntel, Inc.(b)		559,103
	1,644	Tableau Software, Inc., Class A(b)		160,849
	73,383	Take-Two Interactive Software, Inc.(b)		1,739,177
	13,786	Tangoe, Inc.(b)		188,592
	87,307	TeleCommunication Systems, Inc., Class A(b)		272,398
	22,466	Telenav, Inc.(b)		187,816
	21,829	TeleTech Holdings, Inc.		566,244
	10,080	TESSCO Technologies, Inc.		254,722
	14,792	Tessera Technologies, Inc.		534,139

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	58,507	TiVo, Inc.(b)	$	646,502
	112,787	TTM Technologies, Inc.(b)		1,054,558
	32,662	Twitter, Inc.(b)		1,272,512
	4,484	Tyler Technologies, Inc.(b)		546,824
	2,361	Ultimate Software Group, Inc. (The)(b)		392,445
	32,144	Ultra Clean Holdings, Inc.(b)		193,185
	25,939	Ultratech, Inc.(b)		517,742
	51,387	United Online, Inc.(b)		813,456
	9,526	Universal Display Corp.(b)		419,811
	43,026	Veeco Instruments, Inc.(b)		1,269,697
	54,380	VeriFone Systems, Inc.(b)		1,945,173
	22,332	Verint Systems, Inc.(b)		1,371,855
	24,836	ViaSat, Inc.(b)		1,493,140
	11,839	Virtusa Corp.(b)		471,192
	20,588	Vishay Precision Group, Inc.(b)		293,791
	20,936	VMware, Inc., Class A(b)		1,844,462
	11,544	Web.com Group, Inc.(b)		212,063
	14,086	WebMD Health Corp.(b)		621,897
	16,388	WEX, Inc.(b)		1,847,091
	5,444	Workday, Inc., Class A(b)		496,547
	28,405	Xcerra Corp.(b)		279,221
	11,289	XO Group, Inc.(b)		183,559
	106,387	Yandex NV, Class A (Russia)(b)		2,046,886
	7,331	Yelp, Inc., Class A(b)		288,768
	19,039	Zebra Technologies Corp., Class A(b)		1,753,111
	2,629	Zillow Group, Inc., Class A(b)(c)		256,696
	627,223	Zynga, Inc., Class A(b)		1,536,696
				198,583,397
		Materials—5.7%
	36,068	A. Schulman, Inc.		1,531,087
	71,884	A.M. Castle & Co.(b)(c)		281,785
	10,692	AEP Industries, Inc.(b)		535,669
	23,724	American Vanguard Corp.		258,829
	14,323	Ampco-Pittsburgh Corp.		229,025
	8,751	Balchem Corp.		458,727
	52,086	Boise Cascade Co.(b)		1,807,384
	35,922	Calgon Carbon Corp.		797,109
	47,465	Carpenter Technology Corp.		2,052,861
	44,441	Century Aluminum Co.(b)		572,844
	105,973	China Green Agriculture, Inc. (China)		222,543
	31,774	Clearwater Paper Corp.(b)		2,032,583
	351,306	Coeur Mining, Inc.(b)(c)		1,833,817
	4,196	Deltic Timber Corp.		268,544
	15,463	Eagle Materials, Inc.		1,289,460
	83,532	Ferro Corp.(b)		1,126,847
	19,957	Flotek Industries, Inc.(b)		285,186
	30,057	FutureFuel Corp.		326,720
	42,488	Globe Specialty Metals, Inc.		846,361
	67,223	Gold Resource Corp.		226,542
	39,198	H.B. Fuller Co.		1,637,300
	10,937	Hawkins, Inc.		431,465
	13,923	Haynes International, Inc.		619,156
	23,148	Headwaters, Inc.(b)		406,942
	345,566	Hecla Mining Co.		1,043,609
	38,405	Horsehead Holding Corp.(b)		574,155
	21,902	Innophos Holdings, Inc.		1,157,302

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

40

PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ) (continued)

April 30, 2015

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Materials (continued)
	17,005	Innospec, Inc.	$	743,118
	61,071	Intrepid Potash, Inc.(b)		765,220
	22,204	Kaiser Aluminum Corp.		1,784,535
	35,621	KapStone Paper and Packaging Corp.		995,607
	54,393	Koppers Holdings, Inc.		1,222,755
	73,360	Kraton Performance Polymers, Inc.(b)		1,653,534
	39,267	Kronos Worldwide, Inc.		528,141
	102,909	Louisiana-Pacific Corp.(b)		1,568,333
	19,378	LSB Industries, Inc.(b)		821,821
	24,918	Materion Corp.		996,471
	394,852	McEwen Mining, Inc.(b)(c)		394,852
	17,253	Minerals Technologies, Inc.		1,168,546
	853,861	Molycorp, Inc.(b)(c)		787,943
	28,837	Myers Industries, Inc.		466,294
	12,080	Neenah Paper, Inc.		730,478
	256,991	Noranda Aluminum Holding Corp.		858,350
	27,918	Olympic Steel, Inc.		305,702
	60,714	OM Group, Inc.		1,823,849
	84,122	OMNOVA Solutions, Inc.(b)		672,135
	29,387	Orion Engineered Carbons SA		575,397
	65,038	P.H. Glatfelter Co.		1,612,942
	8,577	Quaker Chemical Corp.		713,778
	212,528	Rentech, Inc.(b)		255,034
	26,803	Royal Gold, Inc.		1,729,598
	35,290	RTI International Metals, Inc.(b)		1,328,668
	57,265	Ryerson Holding Corp.(b)		317,248
	108,975	Schnitzer Steel Industries, Inc., Class A		1,898,344
	24,820	Schweitzer-Mauduit International, Inc.		1,097,292
	29,099	Scotts Miracle-Gro Co. (The), Class A		1,877,176
	28,991	Stepan Co.		1,476,512
	76,949	Stillwater Mining Co.(b)		1,033,425
	105,250	SunCoke Energy, Inc.		1,845,032
	27,439	Tredegar Corp.		561,676
	43,662	Trinseo SA(b)		994,184
	72,424	Tronox Ltd., Class A		1,517,283
	8,523	UFP Technologies, Inc.(b)		172,932
	11,252	Universal Stainless & Alloy Products, Inc.(b)		236,292
	6,447	US Concrete, Inc.(b)		234,026
	89,194	Verso Corp.(b)(c)		124,872
	2,149,033	Walter Energy, Inc.		1,090,204
	58,355	Wausau Paper Corp.		543,869
	22,724	Westlake Chemical Corp.		1,772,018
	60,830	Worthington Industries, Inc.		1,644,235
	29,590	Zep, Inc.		588,249
				66,381,822
		Telecommunication Services—1.5%
	38,264	8x8, Inc.(b)		334,045
	161,280	Alaska Communications Systems Group, Inc.(b)		367,718
	9,941	Atlantic Tele-Network, Inc.		656,305
	505,202	Cincinnati Bell, Inc.(b)		1,732,843
	13,297	Cogent Communications Group, Inc.		465,262
	58,757	Consolidated Communications Holdings, Inc.		1,238,010
	36,404	FairPoint Communications, Inc.(b)(c)		717,887

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Telecommunication Services (continued)
	55,881	General Communication, Inc., Class A(b)	$	886,273
	15,598	Hawaiian Telcom Holdco, Inc.(b)		410,851
	24,572	IDT Corp., Class B		418,461
	36,583	Inteliquent, Inc.		695,443
	81,274	Intelsat SA(b)(c)		1,023,240
	111,823	Iridium Communications, Inc.(b)(c)		1,137,240
	18,456	Lumos Networks Corp.		260,968
	190,134	NTELOS Holdings Corp.		1,104,678
	32,760	ORBCOMM, Inc.(b)		197,215
	60,884	Premiere Global Services, Inc.(b)		621,626
	15,975	SBA Communications Corp., Class A(b)		1,850,224
	18,798	Shenandoah Telecommunications Co.		647,779
	39,608	Spok Holdings, Inc.		745,621
	34,342	United States Cellular Corp.(b)		1,268,250
	140,980	Vonage Holdings Corp.(b)		652,737
				17,432,676
		Utilities—1.6%
	17,748	Abengoa Yield PLC (Spain)(c)		601,835
	26,944	American States Water Co.		1,034,380
	9,883	Artesian Resources Corp., Class A		212,880
	48,060	California Water Service Group		1,147,192
	13,804	Chesapeake Utilities Corp.		659,555
	8,653	Connecticut Water Service, Inc.		311,508
	18,654	Consolidated Water Co. Ltd. (Cayman Islands)(c)		224,035
	48,661	El Paso Electric Co.		1,810,676
	65,443	Empire District Electric Co. (The)		1,542,491
	36,963	Laclede Group, Inc. (The)		1,919,489
	32,153	MGE Energy, Inc.		1,333,706
	17,148	Middlesex Water Co.		390,460
	40,081	Northwest Natural Gas Co.(c)		1,871,783
	5,409	NRG Yield, Inc., Class A(c)		266,123
	11,997	Ormat Technologies, Inc.		438,970
	41,976	Otter Tail Corp.		1,255,502
	13,037	Pattern Energy Group, Inc.		377,812
	16,115	SJW Corp.		471,364
	31,796	South Jersey Industries, Inc.		1,677,239
	20,462	Unitil Corp.		699,800
	9,363	York Water Co. (The)		235,573
				18,482,373
		Total Common Stocks and Other Equity Interests (Cost $1,039,345,389)		1,158,449,418
		Warrants—0.0%
		Energy—0.0%
	4,742	Magnum Hunter Resources Corp., expiring 04/15/16(b) (Cost $0)		0

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

41

PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ) (continued)

April 30, 2015

Number of Shares			Value
		Money Market Fund—0.1%
	1,682,851	Invesco Premier Portfolio—Institutional Class(d) (Cost $1,682,851)	$	1,682,851
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $1,041,028,240)—100.1%		1,160,132,269
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—5.9%
	67,606,210	Invesco Liquid Assets Portfolio—Institutional Class(d)(e) (Cost $67,606,210)		67,606,210
		Total Investments (Cost $1,108,634,450)—106.0%		1,227,738,479
		Other assets less liabilities—(6.0)%		(69,228,804	)
		Net Assets—100.0%	$	1,158,509,675

Investment Abbreviations:

REIT—Real Estate Investment Trust

Notes to Schedule of Investments:

^(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.

^(b)  Non-income producing security.

^(c)  All or a portion of this security was out on loan at April 30, 2015.

^(d)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated.

^(e)  The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2G. The following table presents the Fund’s gross and net amount of assets available for offset by the Fund as of April 30, 2015.

Counterparty	Gross Amount of Securities on Loan at Value		Cash Collateral Received for Securities Loaned*			Net Amount
Brown Brothers Harriman & Co.	$	65,225,753	$	(65,225,753	)	$	—

* Amount does not include excess collateral received, if any.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

42

Statements of Assets and Liabilities

April 30, 2015

	PowerShares DWA NASDAQ Momentum Portfolio (DWAQ)			PowerShares Dynamic Market Portfolio (PWC)			PowerShares FTSE RAFI US 1000 Portfolio (PRF)			PowerShares FTSE RAFI US 1500 Small-Mid Portfolio  (PRFZ)
Assets:
Unaffiliated investments, at value(a)	$	30,033,015		$	168,992,410		$	4,554,581,507		$	1,158,449,418
Affiliated investments, at value		75,896			102,293			40,425,017			69,289,061
Total investments, at value		30,108,911			169,094,703			4,595,006,524			1,227,738,479
Cash		—			—			—			10,782
Receivables:
Dividends		3,598			53,008			4,836,467			460,979
Foreign tax reclaims		184			—			2,074			1,636
Investments sold		—			—			—			44,349
Securities lending		—			—			75,941			238,050
Other assets		—			—			143			—
Total Assets		30,112,693			169,147,711			4,599,921,149			1,228,494,275
Liabilities:
Due to custodian		—			—			1,800,558			—
Payables:
Investments purchased		—			—			—			1,341,830
Collateral upon return of securities loaned		—			—			36,139,688			67,606,210
Accrued advisory fees		4,060			72,430			981,670			200,733
Accrued trustees’ and officer’s fees		16,026			30,068			111,126			40,373
Accrued expenses		69,409			95,004			2,871,289			795,454
Total Liabilities		89,495			197,502			41,904,331			69,984,600
Net Assets	$	30,023,198		$	168,950,209		$	4,558,016,818		$	1,158,509,675
Net Assets Consist of:
Shares of beneficial interest	$	82,655,770		$	479,047,436		$	3,997,025,771		$	1,069,502,995
Undistributed net investment income		8,342			161,208			10,571,766			2,242,185
Undistributed net realized gain (loss)		(56,087,853	)		(315,927,442	)		(178,871,439	)		(32,339,534	)
Net unrealized appreciation		3,446,939			5,669,007			729,290,720			119,104,029
Net Assets	$	30,023,198		$	168,950,209		$	4,558,016,818		$	1,158,509,675
Shares outstanding (unlimited amount authorized, $0.01 par value)		400,000			2,300,000			49,300,000			11,200,000
Net asset value	$	75.06		$	73.46		$	92.45		$	103.44
Market price	$	75.10		$	73.40		$	92.43		$	103.45
Unaffiliated investments, at cost	$	26,586,076		$	163,323,403		$	3,825,959,596		$	1,039,345,389
Affiliated investments, at cost	$	75,896		$	102,293		$	39,756,208		$	69,289,061
Total investments, at cost	$	26,661,972		$	163,425,696		$	3,865,715,804		$	1,108,634,450
(a) Includes securities on loan with an aggregate value of	$	—		$	—		$	32,307,519		$	65,225,753

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

43

Statements of Operations

For the year ended April 30, 2015

	PowerShares DWA NASDAQ Momentum Portfolio (DWAQ)			PowerShares Dynamic Market Portfolio (PWC)			PowerShares FTSE RAFI US 1000 Portfolio (PRF)			PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ)
Investment Income:
Unaffiliated dividend income	$	182,039		$	2,877,011		$	91,881,190		$	16,738,641
Affiliated dividend income		11			23			161,597			121
Securities lending income		—			—			748,911			1,728,970
Foreign withholding tax		(99	)		—			(5,771	)		(11,416	)
Total Income		181,951			2,877,034			92,785,927			18,456,316
Expenses:
Advisory fees		132,697			944,873			11,647,703			3,005,344
Accounting & administration fees		36,770			37,673			771,588			197,580
Professional fees		30,446			29,867			81,053			39,540
Sub-licensing fees		16,581			56,692			3,614,805			932,694
Custodian & transfer agent fees		10,250			9,554			84,653			41,150
Trustees’ and officer’s fees		8,331			11,492			80,243			26,988
Other expenses		21,004			24,801			202,184			118,903
Total Expenses		256,079			1,114,952			16,482,229			4,362,199
Less: Waivers		(96,933	)		(198	)		(814,623	)		(321,380	)
Net Expenses		159,146			1,114,754			15,667,606			4,040,819
Net Investment Income		22,805			1,762,280			77,118,321			14,415,497
Realized and Unrealized Gain (Loss):
Net realized gain (loss) from:
Investment securities		(3,437,510	)		(25,467,869	)		(2,618,317	)		(147,599	)
In-kind redemptions		1,579,701			35,890,801			204,799,741			74,386,420
Foreign currencies		—			—			—			(1,273	)
Net realized gain (loss)		(1,857,809	)		10,422,932			202,181,424			74,237,548
Change in net unrealized appreciation (depreciation) on:
Investment securities		5,672,817			(622,185	)		110,266,901			1,016,036
Foreign currencies		—			—			—			(938	)
Net change in unrealized appreciation (depreciation)		5,672,817			(622,185	)		110,266,901			1,015,098
Net realized and unrealized gain		3,815,008			9,800,747			312,448,325			75,252,646
Net increase in net assets resulting from operations	$	3,837,813		$	11,563,027		$	389,566,646		$	89,668,143

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

44

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Statements of Changes in Net Assets

For the years ended April 30, 2015 and 2014

	PowerShares DWA NASDAQ Momentum Portfolio (DWAQ)						PowerShares Dynamic Market Portfolio (PWC)
	2015			2014			2015			2014
Operations:
Net investment income	$	22,805		$	81,140		$	1,762,280		$	1,507,145
Net realized gain (loss)		(1,857,809	)		7,845,444			10,422,932			42,915,167
Net change in unrealized appreciation (depreciation)		5,672,817			(5,108,462	)		(622,185	)		(7,584,688	)
Net increase in net assets resulting from operations		3,837,813			2,818,122			11,563,027			36,837,624
Distributions to Shareholders from:
Net investment income		—			(102,874	)		(1,899,933	)		(1,443,855	)
Shareholder Transactions:
Proceeds from shares sold		17,886,325			38,073,218			389,553,289			310,118,300
Value of shares repurchased		(17,435,268	)		(37,214,086	)		(416,484,985	)		(299,950,822	)
Net increase (decrease) in net assets resulting from shares transactions		451,057			859,132			(26,931,696	)		10,167,478
Increase (Decrease) in Net Assets		4,288,870			3,574,380			(17,268,602	)		45,561,247
Net Assets:
Beginning of year		25,734,328			22,159,948			186,218,811			140,657,564
End of year	$	30,023,198		$	25,734,328		$	168,950,209		$	186,218,811
Undistributed net investment income (loss) at end of year	$	8,342		$	(13,051	)	$	161,208		$	233,919
Changes in Shares Outstanding:
Shares sold		250,000			600,000			5,300,000			4,900,000
Shares repurchased		(250,000	)		(600,000	)		(5,650,000	)		(4,750,000	)
Shares outstanding, beginning of year		400,000			400,000			2,650,000			2,500,000
Shares outstanding, end of year		400,000			400,000			2,300,000			2,650,000

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

46

PowerShares FTSE RAFI US 1000 Portfolio (PRF)						PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ)
2015			2014			2015			2014
$	77,118,321		$	45,938,852		$	14,415,497		$	8,550,955
	202,181,424			119,763,331			74,237,548			79,175,946
	110,266,901			316,724,319			1,015,098			69,309,882
	389,566,646			482,426,502			89,668,143			157,036,783
	(73,911,874	)		(42,658,537	)		(14,188,599	)		(7,637,848	)
	1,355,924,502			1,350,714,852			319,485,155			443,192,650
	(419,258,912	)		(263,236,412	)		(195,186,019	)		(197,623,306	)
	936,665,590			1,087,478,440			124,299,136			245,569,344
	1,252,320,362			1,527,246,405			199,778,680			394,968,279
	3,305,696,456			1,778,450,051			958,730,995			563,762,716
$	4,558,016,818		$	3,305,696,456		$	1,158,509,675		$	958,730,995
$	10,571,766		$	7,365,319		$	2,242,185		$	1,928,173
	15,150,000			17,000,000			3,150,000			4,700,000
	(4,550,000	)		(3,200,000	)		(1,900,000	)		(2,000,000	)
	38,700,000			24,900,000			9,950,000			7,250,000
	49,300,000			38,700,000			11,200,000			9,950,000

47

Financial Highlights

PowerShares DWA NASDAQ Momentum Portfolio (DWAQ)

	Year Ended April 30,
	2015			2014			2013			2012			2011
Per Share Operating Performance:
Net asset value at beginning of year	$	64.34		$	55.40		$	51.32		$	53.76		$	45.15
Net investment income(a)		0.06			0.21			0.71	(b)		0.10			0.07
Net realized and unrealized gain (loss) on investments		10.66			9.00			4.18			(2.50	)		8.65
Total from investment operations		10.72			9.21			4.89			(2.40	)		8.72
Distributions to shareholders from:
Net investment income		—			(0.27	)		(0.81	)		(0.04	)		(0.11	)
Net asset value at end of year	$	75.06		$	64.34		$	55.40		$	51.32		$	53.76
Market price at end of year(c)	$	75.10		$	64.32		$	55.32		$	51.30		$	53.75
Net Asset Value Total Return(d)		16.66	%		16.64	%		9.75	%		(4.46	)%		19.34	%
Market Price Total Return(d)		16.76	%		16.77	%		9.63	%		(4.48	)%		19.31	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	30,023		$	25,734		$	22,160		$	28,224		$	40,321
Ratio to average net assets of:
Expenses, after Waivers		0.60	%		0.60	%(e)		0.60	%		0.60	%		0.60	%
Expenses, prior to Waivers		0.96	%		0.91	%(e)		0.95	%		0.93	%		0.91	%
Net investment income, after Waivers		0.09	%		0.32	%		1.42	%(b)		0.22	%		0.15	%
Portfolio turnover rate(f)		154	%		296	%		118	%		99	%		75	%

^(a)  Based on average shares outstanding.

^(b)  Net investment income per share and the ratio of net investment income to average net assets include a special cash dividend received of $4 per share owned of Warner Chilcott PLC on August 29, 2012. Net investment income per share and the ratio of net investment income to average net assets excluding the special dividend are $0.43 and 0.87%, respectively.

^(c)  The mean between the last bid and ask prices.

^(d)  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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(e)  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 company expenses are not expenses that are incurred directly by the Fund. They are expenses that are incurred directly by the investment companies and are deducted from the value of the funds that the Fund invests in. The effect of the estimated investment company expenses that the Fund bears indirectly is included in the Fund’s total return.

^(f)  Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions. For the fiscal year ended April 30, 2014, the portfolio turnover calculation includes the value of securities purchased and sold in the effort to realign the Fund’s portfolio holdings due to the underlying index change.

PowerShares Dynamic Market Portfolio (PWC)

	Year Ended April 30,
	2015			2014			2013			2012			2011
Per Share Operating Performance:
Net asset value at beginning of year	$	70.27		$	56.26		$	46.78		$	48.26		$	40.38
Net investment income(a)		0.68			0.60			0.82			0.44			0.57
Net realized and unrealized gain (loss) on investments		3.25			13.99			9.51			(1.52	)		7.94
Total from investment operations		3.93			14.59			10.33			(1.08	)		8.51
Distributions to shareholders from:
Net investment income		(0.74	)		(0.58	)		(0.85	)		(0.40	)		(0.63	)
Net asset value at end of year	$	73.46		$	70.27		$	56.26		$	46.78		$	48.26
Market price at end of year(b)	$	73.40		$	70.27		$	56.23		$	46.75		$	48.24
Net Asset Value Total Return(c)		5.58	%		26.09	%		22.39	%		(2.12	)%		21.34	%
Market Price Total Return(c)		5.49	%		26.15	%		22.40	%		(2.14	)%		21.29	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	168,950		$	186,219		$	140,658		$	128,644		$	188,207
Ratio to average net assets of:
Expenses, after Waivers		0.59	%		0.60	%		0.60	%		0.60	%		0.60	%
Expenses, prior to Waivers		0.59	%		0.60	%		0.60	%		0.62	%		0.64	%
Net investment income, after Waivers		0.93	%		0.94	%		1.68	%		1.00	%		1.38	%
Portfolio turnover rate(d)		237	%		244	%		166	%		133	%		107	%

^(a)  Based on average shares outstanding.

^(b)  The mean between the last bid and ask prices.

^(c)  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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(d)  Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

48

Financial Highlights (continued)

PowerShares FTSE RAFI US 1000 Portfolio (PRF)

	Year Ended April 30,
	2015			2014			2013			2012			2011
Per Share Operating Performance:
Net asset value at beginning of year	$	85.42		$	71.42		$	59.73		$	60.72		$	52.93
Net investment income(a)		1.72			1.45			1.31			1.12			1.07
Net realized and unrealized gain (loss) on investments		6.93			13.89			11.66			(0.99	)		7.63
Total from investment operations		8.65			15.34			12.97			0.13			8.70
Distributions to shareholders from:
Net investment income		(1.62	)		(1.34	)		(1.28	)		(1.12	)		(0.91	)
Net asset value at end of year	$	92.45		$	85.42		$	71.42		$	59.73		$	60.72
Market price at end of year(b)	$	92.43		$	85.37		$	71.42		$	59.72		$	60.71
Net Asset Value Total Return(c)		10.19	%		21.68	%		22.06	%		0.41	%		16.72	%
Market Price Total Return(c)		10.23	%		21.61	%		22.09	%		0.41	%		16.63	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	4,558,017		$	3,305,696		$	1,778,450		$	1,388,661		$	1,208,246
Ratio to average net assets of:
Expenses, after Waivers		0.39	%		0.39	%		0.39	%		0.39	%		0.39	%
Expenses, prior to Waivers		0.41	%		0.41	%		0.43	%		0.43	%		0.44	%
Net investment income, after Waivers		1.92	%		1.84	%		2.10	%		2.00	%		2.01	%
Portfolio turnover rate(d)		10	%		12	%		13	%		6	%		9	%

^(a)  Based on average shares outstanding.

^(b)  The mean between the last bid and ask prices.

^(c)  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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(d)  Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.

PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ)

	Year Ended April 30,
	2015			2014			2013			2012			2011
Per Share Operating Performance:
Net asset value at beginning of year	$	96.35		$	77.76		$	66.71		$	70.66		$	59.82
Net investment income(a)		1.38			0.98			1.13			0.73			0.50
Net realized and unrealized gain (loss) on investments		7.04			18.52			11.08			(4.04	)		10.80
Total from investment operations		8.42			19.50			12.21			(3.31	)		11.30
Distributions to shareholders from:
Net investment income		(1.33	)		(0.91	)		(1.16	)		(0.64	)		(0.46	)
Net asset value at end of year	$	103.44		$	96.35		$	77.76		$	66.71		$	70.66
Market price at end of year(b)	$	103.45		$	96.38		$	77.67		$	66.72		$	70.64
Net Asset Value Total Return(c)		8.80	%		25.22	%		18.56	%		(4.60	)%		19.04	%
Market Price Total Return(c)		8.78	%		25.40	%		18.41	%		(4.56	)%		19.06	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	1,158,510		$	958,731		$	563,763		$	463,645		$	409,826
Ratio to average net assets of:
Expenses, after Waivers		0.39	%		0.39	%		0.39	%		0.39	%		0.39	%
Expenses, prior to Waivers		0.42	%		0.42	%		0.43	%		0.44	%		0.46	%
Net investment income, after Waivers		1.39	%		1.08	%		1.64	%		1.17	%		0.82	%
Portfolio turnover rate(d)		26	%		31	%		30	%		15	%		19	%

^(a)  Based on average shares outstanding.

^(b)  The mean between the last bid and ask prices.

^(c)  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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(d)  Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

49

Notes to Financial Statements

PowerShares Exchange-Traded Fund Trust

April 30, 2015

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, 2015, the Trust offered fifty-three portfolios. This report includes the following portfolios:

Full Name	Short Name
PowerShares DWA NASDAQ Momentum Portfolio (DWAQ)	“DWA NASDAQ Momentum Portfolio”
PowerShares Dynamic Market Portfolio (PWC)	“Dynamic Market Portfolio”
PowerShares FTSE RAFI US 1000 Portfolio (PRF)	“FTSE RAFI US 1000 Portfolio”
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ)	“FTSE RAFI US 1500 Small-Mid Portfolio”

Each portfolio (each, a “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 NYSE Arca, Inc., except for Shares of FTSE RAFI US 1500 Small-Mid Portfolio, which are listed and traded on The NASDAQ Stock Market LLC.

The market price of each Share may differ to some degree from the Fund’s net asset value (“NAV”). 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 principally in exchange for the deposit or delivery of a basket of securities (“Deposit Securities”). 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 generally correspond (before fees and expenses) to the price and yield of its respective index listed below (each, an “Underlying Index”):

Fund	Underlying Index
DWA NASDAQ Momentum Portfolio	Dorsey Wright NASDAQ Technical LeadersTM Index
Dynamic Market Portfolio	Dynamic Market IntellidexSM Index
FTSE RAFI US 1000 Portfolio	FTSE RAFI US 1000 Index
FTSE RAFI US 1500 Small-Mid Portfolio	FTSE RAFI US 1500 Small-Mid Index

Note 2. Significant Accounting Policies

The preparation of the financial statements in accordance with accounting principles generally accepted in the United States of America (“GAAP”) 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. The following is a summary of the significant accounting policies followed by the Funds in preparation of their financial statements.

A. Security Valuation

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

A security listed or traded on an exchange (except convertible securities) 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. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked 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 asked prices. For purposes of determining NAV per Share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).

Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end of day NAV per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the 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.

50

Debt obligations (including convertible securities) 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 (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Securities with a demand feature exercisable within one to seven days are valued at par. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

Foreign securities’ (including foreign exchange contracts’) prices 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 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 Invesco PowerShares Capital Management LLC (the “Adviser”) determines 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’ prices 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. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.

Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith following procedures approved by the Board of Trustees. Issuer-specific events, market trends, bid/asked 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.

Each Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.

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

Index Risk. Unlike many investment companies, the Funds do not utilize investing strategies that seek returns in excess of their Underlying Indexes. Therefore, a Fund would not necessarily buy or sell a security unless that security is added or removed, respectively, from its respective Underlying Index, even if that security generally is underperforming.

Equity Risk. Equity risk is the risk that the value of the securities that each Fund holds will fall due to general market and economic conditions, perceptions regarding the industries in which the issuers of securities that a Fund holds participate or factors relating to specific companies in which the Fund invests. For example, an adverse event, such as an unfavorable earnings report, may depress the value of securities a Fund holds; the price of securities may be particularly sensitive to general movements in the stock market; or a drop in the stock market may depress the price of most or all of the securities a Fund holds. In addition, securities of an issuer in the Fund’s portfolio may decline in price if the issuer fails to make anticipated dividend payments because, among other reasons, the issuer of the security experiences a decline in its financial condition.

Industry Concentration Risk. In following its methodology, each Fund’s Underlying Index from time to time may be concentrated to a significant degree in securities of issuers located in a single industry or a sector. To the extent that an Underlying Index concentrates in the securities of issuers in a particular industry or sector, each Fund will also concentrate its investments to approximately the same extent. By concentrating its investments in an industry or sector, a Fund may face more risks than if it were diversified broadly over numerous industries or sectors. In addition, at times, an industry or sector may be out of favor and underperform other industries or the market as a whole. Any factors detrimental to the performance of such industry or sector will disproportionately impact a Fund’s NAV.

51

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 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.

Momentum Investing Risk. DWA NASDAQ Momentum Portfolio employs a “momentum” style of investing that is subject to the risk that the securities may be more volatile than the market as a whole, or that the returns on securities that have previously exhibited price momentum are less than returns on other styles of investing. Momentum can turn quickly, and stocks that previously exhibited high momentum may not experience continued positive momentum. In addition, there may be periods when the momentum style of investing is out of favor and therefore, the investment performance of the Fund may suffer.

Small and Medium Capitalization Company Risk. For FTSE RAFI US 1500 Small-Mid Portfolio, investing in securities of small and medium capitalization companies involves greater risk than customarily is 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 focus are still evolving and, as a result, they may be more sensitive to changing market conditions.

Portfolio Turnover Risk. The Funds may engage in frequent trading of their portfolio securities in connection with the rebalancing or adjustment of their respective Underlying Index. A portfolio turnover rate of 200%, for example, is equivalent to a Fund buying and selling all of its securities two times during the course of a year. A high portfolio turnover rate (such as 100% or more) could result in high brokerage costs for a Fund. While a high portfolio turnover rate can result in an increase in taxable capital gain distributions to a Fund’s shareholders, each Fund will seek to utilize an in-kind creation and redemption mechanism to minimize realization of capital gains to the extent possible.

C. Federal Income Taxes

Each Fund intends to comply with the provisions of the Internal Revenue Code of 1986, as amended (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.

Each Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed each Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.

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 U.S. federal tax returns and tax returns in 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 Transactions and Investment Income

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

Corporate actions (including cash dividends) are recorded net of non-reclaimable foreign tax withholdings on the ex-date.

E. Expenses

Expenses of the Trust that are directly identifiable to a specific Fund are applied to that Fund. Expenses of the Trust 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 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 Index, any distribution fees or expenses, litigation expenses, fees payable to the Trust’s Board members who are not “interested persons” (as defined in the 1940 Act) of the Trust (the

52

“Independent Trustees”) or the Adviser, expenses incurred in connection with the Board members’ services, including travel expenses and legal fees of counsel for the Independent Trustees, acquired fund fees and expenses, if any, and extraordinary expenses.

To the extent a Fund invests in other investment companies, the expenses shown 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 such investment companies’ expenses are included in the realized and unrealized gain or loss on the investments in the investment companies.

F. Dividends and Distributions to Shareholders

Each Fund declares and pays dividends from net investment income, if any, to its shareholders quarterly and records such dividends on ex-dividend date. Generally, each Fund distributes net realized taxable capital gains, if any, annually in cash and records them on ex-dividend date. Such distributions on a tax basis are determined in conformity with federal 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 year-end.

G. Securities Lending

During the fiscal year ended April 30, 2015, FTSE RAFI US 1000 Portfolio and FTSE RAFI US 1500 Small-Mid Portfolio participated in securities lending. Each Fund loaned portfolio securities having a market value up to one-third of each Fund’s total assets. Such loans are secured by cash collateral equal to no less than 102% (105% for international) of the market value of the loaned securities determined daily by the securities lending provider. Cash collateral received in connection with these loans is invested in an affiliated money market fund and is shown as such on the Schedule of Investments. It is the policy of these Funds to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. Lending securities entails a risk of loss to a Fund if, and to the extent that, the market value of the securities loaned were to increase, and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. A Fund could experience delays and costs in gaining access to the collateral. A Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, are included in Securities lending income on the Statements of Operations. The aggregate value of securities out on loan, if any, is shown on the Statements of Assets and Liabilities.

Note 3. Investment Advisory Agreement and Other Agreements

The Trust has entered into an Investment Advisory Agreement with the Adviser on behalf of each Fund, pursuant to which the Adviser has overall responsibility for the selection and ongoing monitoring of the Funds’ investments, managing the Funds’ business affairs and providing certain clerical, bookkeeping and other administrative services. Pursuant to that Investment Advisory Agreement, each of DWA NASDAQ Momentum Portfolio and Dynamic Market Portfolio has agreed to pay the Adviser an annual fee of 0.50% of the Fund’s average daily net assets, and each of FTSE RAFI US 1000 Portfolio and FTSE RAFI US 1500 Small-Mid Portfolio has agreed to pay the Adviser an annual fee of 0.29% of the Fund’s average daily net assets.

The Trust also has entered into an Amended and Restated Excess Expense Agreement (the “Expense Agreement”) with the Adviser on behalf of each Fund. For the FTSE RAFI US 1000 Portfolio and the FTSE RAFI US 1500 Small-Mid Portfolio, the Adviser has agreed to waive fees and/or pay Fund expenses to the extent necessary to prevent the operating expenses (excluding interest expenses, brokerage commissions and other trading expenses, offering costs, taxes, acquired fund fees and expenses, if any, and extraordinary expenses) of each Fund from exceeding 0.39% of the Fund’s average daily net assets per year (the “Expense Cap”), through at least August 31, 2016. Offering costs excluded from the Expense Cap for these Funds 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. For the DWA NASDAQ Momentum Portfolio and the Dynamic Market Portfolio, the Adviser has agreed to waive fees and/or pay Fund expenses to the extent necessary to prevent the operating expenses (excluding interest expenses, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses, if any, and extraordinary expenses) of each Fund from exceeding 0.60% of the Fund’s average daily net assets per year, through at least August 31, 2016. Unless the Adviser continues the Expense Agreement, it will terminate on August 31, 2016. The Expense Agreement cannot be terminated during its term. The Adviser did not waive fees and/or pay Fund expenses during the period under this Expense Cap for Dynamic Market Portfolio.

Further, through August 31, 2017, the Adviser has contractually agreed to waive a portion of each Fund’s management fee in an amount equal to 100% of the net advisory fees an affiliate of the Adviser receives that are attributable to certain of the Fund’s investments in money market funds managed by that affiliate (excluding investments of cash collateral from securities lending). The Adviser cannot discontinue this waiver prior to its expiration. This agreement is not subject to recapture by the Adviser.

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For the fiscal year ended April 30, 2015, the Adviser waived fees and/or paid Fund expenses for each Fund in the following amounts:

DWA NASDAQ Momentum Portfolio	$	96,933
Dynamic Market Portfolio		198
FTSE RAFI US 1000 Portfolio		814,623
FTSE RAFI US 1500 Small-Mid Portfolio		321,380

For FTSE RAFI US 1000 Portfolio and FTSE RAFI US 1500 Small-Mid Portfolio, the Expense Agreement provides that the fees waived or expenses borne by the Adviser are subject to recapture by the Adviser for up to three years, but no recapture payment will be made by a Fund if it would result in the Fund exceeding its Expense Cap as specified above. For DWA NASDAQ Momentum Portfolio and Dynamic Market Portfolio, the expenses borne by the Adviser are not subject to recapture.

For the following Funds, the amounts available for potential future recapture by the Adviser under the Excess Expense Agreement and the expiration schedule at April 30, 2015 are as follows:

	Total Potential Recapture Amounts		Potential Recapture Amounts Expiring
			4/30/16		4/30/17		4/30/18
FTSE RAFI US 1000 Portfolio	$	1,968,680	$	519,689	$	637,211	$	811,780
FTSE RAFI US 1500 Small-Mid Portfolio		806,238		211,738		273,970		320,530

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 Funds are not charged any fees pursuant to the Distribution Agreement. The Distributor is an affiliate of the Adviser.

The Adviser has entered into a licensing agreement for each Fund with the following entities (each, a “Licensor”):

Fund	Licensor
DWA NASDAQ Momentum Portfolio	Dorsey Wright & Associates, Inc.
Dynamic Market Portfolio	NYSE Arca, Inc.
FTSE RAFI US 1000 Portfolio	FTSE International Ltd.
FTSE RAFI US 1500 Small-Mid Portfolio	FTSE International Ltd.

Each Underlying Index name trademark is owned by its respective Licensor. These trademarks have been licensed to the Adviser for use by the Funds. Each Fund is entitled to use its Underlying Index pursuant to the Trust’s sub-licensing agreement with the Adviser. The Funds are required to pay the sub-licensing fees that are shown on the Statements of Operations. 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 the Funds.

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

Note 4. Investments in Affiliates

The Adviser and Invesco Mortgage Capital, Inc. REIT are wholly-owned subsidiaries of Invesco Ltd., and therefore Invesco Ltd. and Invesco Mortgage Capital, Inc. REIT are considered to be affiliated with the Funds. The table below shows FTSE RAFI US 1000 Portfolio’s transactions in, and earnings from, its investments in affiliates for the fiscal year ended April 30, 2015.

FTSE RAFI US 1000 Portfolio

	Value April 30, 2014		Purchases at Cost		Proceeds from Sales			Change in Unrealized Appreciation (Depreciation)			Realized Gain		Value April 30, 2015		Dividend Income
Invesco Ltd.	$	2,251,609	$	1,007,114	$	(324,623	)	$	411,963		$	40,353	$	3,386,416	$	73,002
Invesco Mortgage Capital, Inc. REIT		628,892		356,372		(18,905	)		(67,912	)		466		898,913		88,248
Total Investments in Affiliates	$	2,880,501	$	1,363,486	$	(343,528	)	$	344,051		$	40,819	$	4,285,329	$	161,250

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

54

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 a 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.

Except for the Funds listed below, as of April 30, 2015, all of the securities in each Fund were valued based on Level 1 inputs (see the Schedules of Investments for security categories). 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.

	Investments in Securities
	Level 1		Level 2		Level 3		Total
FTSE RAFI US 1000 Portfolio
Equity Securities	$	4,594,834,342	$	—	$	172,182	$	4,595,006,524
FTSE RAFI US 1500 Small-Mid Portfolio
Equity Securities	$	1,227,738,479	$	0	$	—	$	1,227,738,479

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, 2015 and 2014:

	2015		2014
	Ordinary Income		Ordinary Income
DWA NASDAQ Momentum Portfolio	$	—	$	102,874
Dynamic Market Portfolio		1,899,933		1,443,855
FTSE RAFI US 1000 Portfolio		73,911,874		42,658,537
FTSE RAFI US 1500 Small-Mid Portfolio		14,188,599		7,637,848

Tax Components of Net Assets at Fiscal Year-End:

	Undistributed Ordinary Income		Temporary Book/Tax Differences			Net Unrealized Appreciation— Investment Securities		Capital Loss Carryforwards			Post-October Capital Losses Deferrals*			Shares of Beneficial Interest		Total Net Assets
DWA NASDAQ Momentum Portfolio	$	22,077	$	(13,735	)	$	3,424,079	$	(54,879,293	)	$	(1,185,700	)	$	82,655,770	$	30,023,198
Dynamic Market Portfolio		188,076		(26,868	)		5,366,661		(298,975,809	)		(16,649,287	)		479,047,436		168,950,209
FTSE RAFI US 1000 Portfolio		10,658,586		(86,820	)		681,697,352		(130,678,950	)		(599,121	)		3,997,025,771		4,558,016,818
FTSE RAFI US 1500 Small-Mid Portfolio		2,650,641		(32,765	)		101,432,664		(12,547,355	)		(2,496,505	)		1,069,502,995		1,158,509,675

* The Funds will elect to defer net capital losses incurred after October 31 (“Post-October Capital Losses”) within the taxable year that are deemed to arise on the first business day of each Fund’s next taxable year.

Capital loss carryforwards are calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforwards actually available for the Funds to utilize. Capital losses generated in years beginning after December 22, 2010 can be carried forward for an unlimited period, whereas previous losses expire in eight tax years. Capital losses with an expiration period may not be used to offset capital gains until all net capital losses without an expiration date have been utilized. Capital loss carryforwards with no expiration date will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.

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The following table presents available capital loss carryforwards and expiration dates for each Fund as of April 30, 2015.

									Post-effective/no expiration
	2016		2017		2018		2019		Short-Term		Long-Term		Total*		Expired
DWA NASDAQ Momentum Portfolio	$	11,353,752	$	15,764,010	$	14,947,690	$	3,683,431	$	9,130,410	$	—	$	54,879,293	$	21,767,708
Dynamic Market Portfolio		39,899,556		96,635,542		104,214,879		15,461,574		42,665,706		98,552		298,975,809		65,552,628
FTSE RAFI US 1000 Portfolio		—		42,380,517		49,808,238		38,490,195		—		—		130,678,950		—
FTSE RAFI US 1500 Small-Mid Portfolio		—		4,903,334		5,168,127		2,475,894		—		—		12,547,355		—

* Capital loss carryforwards as of the date listed above are reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization.

Note 7. Investment Transactions

For the fiscal year ended April 30, 2015, the cost of securities purchased and proceeds from sales of securities (other than short-term securities, U.S. Treasury obligations, money market funds and in-kind transactions, if any) were as follows:

	Purchases		Sales
DWA NASDAQ Momentum Portfolio	$	41,868,354	$	42,496,514
Dynamic Market Portfolio		449,320,584		451,867,922
FTSE RAFI US 1000 Portfolio		411,713,602		399,993,667
FTSE RAFI US 1500 Small-Mid Portfolio		280,352,118		274,737,129

For the fiscal year ended April 30, 2015, in-kind transactions associated with creations and redemptions were as follows:

	Cost of Securities Received		Value of Securities Delivered
DWA NASDAQ Momentum Portfolio	$	17,905,507	$	16,789,468
Dynamic Market Portfolio		389,002,227		413,304,089
FTSE RAFI US 1000 Portfolio		1,351,644,730		420,201,745
FTSE RAFI US 1500 Small-Mid Portfolio		317,685,156		194,606,246

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

At April 30, 2015, the aggregate cost and the net unrealized appreciation of investments for tax purposes were as follows:

	Gross Unrealized Appreciation		Gross Unrealized (Depreciation)			Net Unrealized Appreciation		Cost
DWA NASDAQ Momentum Portfolio	$	4,070,442	$	(646,363	)	$	3,424,079	$	26,684,832
Dynamic Market Portfolio		11,605,243		(6,238,582	)		5,366,661		163,728,042
FTSE RAFI US 1000 Portfolio		736,054,271		(54,356,919	)		681,697,352		3,913,309,172
FTSE RAFI US 1500 Small-Mid Portfolio		169,372,406		(67,939,742	)		101,432,664		1,126,305,815

Note 8. Reclassification of Permanent Differences

Primarily as a result of differing book/tax treatment of in-kind transactions and expired capital loss carryforwards on April 30, 2015, amounts were reclassified between undistributed net investment income, 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, 2015, the reclassifications were as follows:

	Undistributed Net Investment Income			Undistributed Net Realized Gain (Loss)			Shares of Beneficial Interest
DWA NASDAQ Momentum Portfolio	$	(1,412	)	$	20,261,119		$	(20,259,707	)
Dynamic Market Portfolio		64,942			31,071,867			(31,136,809	)
FTSE RAFI US 1000 Portfolio		—			(196,778,784	)		196,778,784
FTSE RAFI US 1500 Small-Mid Portfolio		87,114			(72,416,510	)		72,329,396

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Note 9. Trustees’ and Officer’s Fees

Trustees’ and Officer’s Fees include amounts accrued by the Funds to pay remuneration to the Independent Trustees and an Officer of the Trust. The Trustee who is an “interested person” of the Trust does 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. Obligations under the Plan represent unsecured claims against the general assets of the Funds.

Note 10. Capital

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

To the extent that the Funds permit transactions in exchange for Deposit Securities, each Fund may issue Shares in advance of receipt of Deposit Securities subject to various conditions, including a requirement to maintain on deposit with the Trust cash at least equal to 105% of the market value of the missing Deposit Securities. In accordance with the Trust’s Participant Agreement, Creation Units will be issued to an Authorized Participant, notwithstanding the fact that the corresponding Deposit Securities have not been received in part or in whole, in reliance on the undertaking of the Authorized Participant to deliver the missing Deposit Securities as soon as possible, which undertaking shall be secured by the Authorized Participant’s delivery and maintenance of collateral consisting of cash in the form of U.S. dollars in immediately available funds having a value (marked-to-market daily) at least equal to 105%, which the Adviser may change from time to time, of the value of the missing Deposit Securities.

Transactions in each Fund’s Shares are disclosed in detail in the Statements of Changes in Net Assets.

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.

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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 PowerShares DWA NASDAQ Momentum Portfolio, PowerShares Dynamic Market Portfolio, PowerShares FTSE RAFI US 1000 Portfolio and PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (each an individual portfolio of PowerShares Exchange-Traded Fund Trust, hereafter referred to as the “Funds”) at April 30, 2015, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, 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 Funds’ 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, 2015 by correspondence with the custodian and brokers, and the application of alternative auditing procedures where confirmations of security purchases have not been received, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

Chicago, IL

June 24, 2015

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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, 2015.

Actual Expenses

The first line in the following tables 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 tables provides information about hypothetical account values and hypothetical expenses based on the Funds’ actual expense ratio and an assumed annualized rate of return of 5% per year before expenses, which is not the Funds’ 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 tables 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. If transaction costs and indirect expenses were included, your costs would have been higher.

	Beginning Account Value November 1, 2014		Ending Account Value April 30, 2015		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During the Six-Month  Period(1)
PowerShares DWA NASDAQ Momentum Portfolio (DWAQ)
Actual	$	1,000.00	$	1,068.78		0.60	%	$	3.08
Hypothetical (5% return before expenses)		1,000.00		1,021.82		0.60			3.01
PowerShares Dynamic Market Portfolio (PWC)
Actual		1,000.00		1,022.05		0.59			2.96
Hypothetical (5% return before expenses)		1,000.00		1,021.87		0.59			2.96
PowerShares FTSE RAFI US 1000 Portfolio (PRF)
Actual		1,000.00		1,039.51		0.39			1.97
Hypothetical (5% return before expenses)		1,000.00		1,022.86		0.39			1.96
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ)
Actual		1,000.00		1,051.98		0.39			1.98
Hypothetical (5% return before expenses)		1,000.00		1,022.86		0.39			1.96

⁽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, 2015. Expenses are calculated by multiplying the Fund’s annualized expense ratio by the average account value for the period, then multiplying the result by 181/365. Expense ratios for the most recent six-month period may differ from expense ratios based on annualized data in the Financial Highlights.

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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 advisers.

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, 2015:

Federal Income Tax Information

	Qualified Dividend Income*			Dividends Received Deduction*
DWA NASDAQ Momentum Portfolio		0	%		0	%
Dynamic Market Portfolio		100	%		100	%
FTSE RAFI US 1000 Portfolio		100	%		100	%
FTSE RAFI US 1500 Small-Mid Portfolio		87	%		80	%

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

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Trustees and Officers

The Independent Trustees 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, 2015.

Name, Address and Year of Birth 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 During the Past 5 Years
Ronn R. Bagge—1958 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	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).	120	None
Todd J. Barre—1957 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	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.	120	None
Marc M. Kole—1960 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Trustee	Since 2006	Retired. Formerly, Chief Financial Officer, Hope Network (social services) (2008-2012); Assistant Vice President and Controller, Priority Health (health insurance) (2005-2008); Senior Vice President of Finance, United Healthcare (2004-2005); Chief Accounting Officer, Senior Vice President of Finance, Oxford Health Plans (2000-2004); Audit Partner, Arthur Andersen LLP (1996-2000).	120	None
Yung Bong Lim—1964 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Trustee	Since 2013	Managing Partner, Residential Dynamics Group LLC (2008-Present); formerly, Managing Director, Citadel Investment Group, L.L.C. (1999-2007).	120	None
Philip M. Nussbaum—1961 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Trustee	Since 2003	Chairman, Performance Trust Capital Partners (2004-Present).	120	None

* This is the date the Independent 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, 2015, the “Fund Family” consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 67 portfolios advised by the Adviser.

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Trustees and Officers (continued)

Name, Address and Year of Birth 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 During the Past 5 Years
Gary R. Wicker—1961 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Trustee	Since 2013	Senior Vice President of Global Finance and Chief Financial Officer at RBC Ministries (publishing company) (2013-Present); formerly, Executive Vice President and Chief Financial Officer, Zondervan Publishing (A division of Harper Collins/NewsCorp) (2007-2012); Senior Vice President and Group Controller (2005-2006), Senior Vice President and Chief Financial Officer (2003-2004), Chief Financial Officer (2001-2003), Vice President, Finance and Controller (1999-2001) and Assistant Controller (1997-1999), divisions of The Thomson Corporation (information services provider).	120	None
Donald H. Wilson—1959 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Chairman of the Board and Trustee	Chairman since 2012; Trustee since 2006	Chairman, President and Chief Executive Officer, Community Financial Shares, Inc. and Community Bank—Wheaton/Glen Ellyn (subsidiary) (2013-Present); Chairman and Chief Executive Officer, Stone Pillar Advisors, 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).	120	None

62

* This is the date the Independent 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, 2015, the “Fund Family” consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 67 portfolios advised by the Adviser.

Trustees and Officers (continued)

The Trustee who is an “interested person” (the “Non-Independent Trustee”) 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 the Non-Independent Trustee and the other directorships, if any, held by the Non-Independent Trustee are shown below.

Name, Address and Year of Birth of Non-Independent Trustee	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 Non-Independent Trustees	Other Directorships Held by Non-Independent Trustees During the Past 5 Years
Kevin M. Carome—1956 Invesco Ltd. Two Peachtree Pointe, 1555 Peachtree St., N.E., Suite 1800 Atlanta, GA 30309	Trustee	Since 2010	Senior Managing Director, Secretary and General Counsel, Invesco Ltd. (2006-Present); Director, Invesco Advisers, Inc. (2009-Present); Director, Invesco Finance PLC, INVESCO Funds Group, Inc., and Invesco Holding Company Limited; Director and Executive Vice President, Invesco Finance, Inc., Invesco Group Services, Inc., Invesco Investments (Bermuda) Ltd., Invesco North American Holdings, Inc., and IVZ, Inc. and Invesco Asset Management (Bermuda) Ltd.; Manager, Horizon Flight Works LLC; Director and Secretary, IVZ Bahamas Private Limited; formerly, Senior Vice President, Secretary and General Counsel, Invesco Advisers, 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.	120	None

* This is the date the Non-Independent 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, 2015, the Fund Complex consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 67 portfolios advised by the Adviser.

63

Trustees and Officers (continued)

Name, Address and Year of Birth of Executive Officers	Position(s) Held with Trust	Length of Time Served*	Principal Occupation(s) During Past 5 Years
Andrew Schlossberg—1974 Invesco Management Group, Inc. 11 Greenway Plaza, Suite 1000 Houston, TX 77046	President	Since 2009	President, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2009-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); Managing Director—U.S. Strategy and Marketing (2010-Present) and Principal Executive Officer (2015-Present), Invesco PowerShares Capital Management LLC; Managing Director, U.S. head of business strategy and chief marketing officer for Invesco Ltd. in the United States (2008-Present); and Senior Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser) (2009-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) and Director, Invesco Distributors, Inc. (2012-2015).
Peter Hubbard—1981 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Vice President	Since 2009	Vice President, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2009-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); 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).
David Warren—1957 Invesco Canada Ltd. 5140 Yonge Street Suite 800, Toronto, Ontario M2N 6X7	Vice President	Since 2009	Vice President, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2009-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); Managing Director—Chief Administrative Officer, Americas, Invesco PowerShares Capital Management LLC; Senior Vice President, Invesco Advisers, Inc. (2009–Present); Director, Executive Vice President and Chief Financial Officer, Invesco Inc. (2009–Present); Senior Vice President, Invesco Management Group, Inc. (2007–Present); Director, Executive Vice President and Chief Financial Officer, Invesco Canada Ltd. (formerly, Invesco Trimark Ltd.) and Chief Administrative Officer, North American Retail, Invesco Ltd. (2007-Present); Director, Invesco Canada Holdings Inc. (2002–Present), Invesco Corporate Class Inc., and Invesco Canada Fund Inc.; Director, Invesco Financial Services Ltd. and Trimark Investments Ltd. (2014-Present); formerly, Director, Executive Vice President and Chief Financial Officer, Invesco Canada Ltd. (formerly, Invesco Trimark Ltd.) (2000-2006).

* This is the date the Officers began serving the Trust. Each Officer serves an indefinite term, until his or her successor is elected.

64

Trustees and Officers (continued)

Name, Address and Year of Birth of Executive Officers	Position(s) Held with Trust	Length of Time Served*	Principal Occupation(s) During Past 5 Years
Sheri Morris—1964 Invesco Management Group, Inc. 11 Greenway Plaza, Suite 1000 Houston, TX 77046	Vice President	Since 2012	Vice President, Treasurer and Principal Financial Officer, The Invesco Funds; Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser) (2009-Present) and Vice President, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2012-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); formerly, Treasurer, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust and PowerShares Actively Managed Exchange-Traded Fund Trust (2011-2013); Vice President, Invesco Aim Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc.; Assistant Vice President and Assistant Treasurer, The Invesco Funds and Assistant Vice President, Invesco Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc.
Rudolf E. Reitmann—1971 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Vice President	Since 2013	Vice President, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2013-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); Head of Global Exchange Traded Funds Operations, Invesco PowerShares Capital Management LLC (2013-Present).
Daniel E. Draper—1968 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Vice President	Since 2013	Senior Vice President, Invesco Distributors, Inc. (2014-Present); Vice President, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2013-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); Managing Director, Invesco PowerShares Capital Management LLC (2013-Present); formerly, Managing Director, Credit Suisse Asset Management (2010–2013) and Lyxor Asset Management/Societe Generale (2007–2010).
Steven M. Hill—1964 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Vice President and Treasurer	Since 2013	Vice President and Treasurer of PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2013-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); Head of Global ETF Administration, Invesco PowerShares Capital Management LLC (2011-Present); Principal Financial and Accounting Officer – Investment Pools, Invesco PowerShares Capital Management LLC (2015-Present); formerly, Senior Managing Director and Chief Financial Officer, Destra Capital Management LLC and its subsidiaries (2010-2011); Chief Financial Officer, Destra Investment Trust and Destra Investment Trust II (2010-2011); Senior Managing Director, Claymore Securities, Inc. (2003-2010); and Chief Financial Officer, Claymore sponsored mutual funds (2003-2010).

* This is the date the Officers began serving the Trust. Each Officer serves an indefinite term, until his or her successor is elected.

65

Trustees and Officers (continued)

Name, Address and Year of Birth of Executive Officers	Position(s) Held with Trust	Length of Time Served*	Principal Occupation(s) During Past 5 Years
Christopher Joe—1969 Invesco Management Group, Inc. 11 Greenway Plaza, Suite 1000 Houston, TX 77046	Chief Compliance Officer	Since 2012	Deputy Chief Compliance Officer of Invesco Advisers, Inc. (2014-Present); Chief Compliance Officer of PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2012-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); U.S. Compliance Director, Invesco, Ltd. (2006-Present); formerly, Chief Compliance Officer, Invesco Investment Advisers, LLC (registered investment adviser) (2010–2013).
Anna Paglia—1974 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Secretary	Since 2011	Secretary, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2011-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); Head of Legal, Invesco PowerShares Capital Management LLC (2010-Present); formerly, Partner, K&L Gates LLP (formerly, Bell Boyd & Lloyd LLP) (2007-2010); Associate Counsel at Barclays Global Investors Ltd. (2004-2006).

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 Officers began serving the Trust. Each Officer serves an indefinite term, until his or her successor is elected.

66

Board Considerations Regarding Continuation of Investment Advisory Agreement

At a meeting held on April 16, 2015, the Board of Trustees of the PowerShares Exchange-Traded Fund Trust (the “Trust”), including the Independent Trustees, approved the continuation of the Investment Advisory Agreement between Invesco PowerShares Capital Management LLC (the “Adviser”) and the Trust for the following 51 series (each, a “Fund” and collectively, the “Funds”):

PowerShares Aerospace & Defense Portfolio

PowerShares BuyBack Achievers™ Portfolio

PowerShares Cleantech™ Portfolio

PowerShares Dividend Achievers^TM Portfolio

PowerShares DWA Momentum Portfolio

PowerShares DWA Basic Materials Momentum Portfolio

PowerShares DWA Consumer Cyclicals Momentum Portfolio

PowerShares DWA Consumer Staples Momentum Portfolio

PowerShares DWA Energy Momentum Portfolio

PowerShares DWA Financial Momentum Portfolio

PowerShares DWA Healthcare Momentum Portfolio

PowerShares DWA Industrials Momentum Portfolio

PowerShares DWA NASDAQ Momentum Portfolio

PowerShares DWA Technology Momentum Portfolio

PowerShares DWA Utilities Momentum Portfolio

PowerShares Dynamic Biotechnology & Genome Portfolio

PowerShares Dynamic Building & Construction Portfolio

PowerShares Dynamic Energy Exploration & Production Portfolio

PowerShares Dynamic Food & Beverage Portfolio

PowerShares Dynamic Large Cap Growth Portfolio

PowerShares Dynamic Large Cap Value Portfolio

PowerShares Dynamic Leisure and Entertainment Portfolio

PowerShares Dynamic Market Portfolio

PowerShares Dynamic Media Portfolio

PowerShares Dynamic Networking Portfolio

PowerShares Dynamic Oil & Gas Services Portfolio

PowerShares Dynamic Pharmaceuticals Portfolio

PowerShares Dynamic Retail Portfolio

PowerShares Dynamic Semiconductors Portfolio

PowerShares Dynamic Software Portfolio

PowerShares Financial Preferred Portfolio

PowerShares FTSE RAFI US 1000 Portfolio

PowerShares FTSE RAFI US 1500 Small-Mid Portfolio

PowerShares Fundamental Pure Large Core Portfolio

PowerShares Fundamental Pure Large Growth Portfolio

PowerShares Fundamental Pure Large Value Portfolio

PowerShares Fundamental Pure Mid Core Portfolio

PowerShares Fundamental Pure Mid Growth Portfolio

PowerShares Fundamental Pure Mid Value Portfolio

PowerShares Fundamental Pure Small Core Portfolio

PowerShares Fundamental Pure Small Growth Portfolio

PowerShares Fundamental Pure Small Value Portfolio

PowerShares Global Listed Private Equity Portfolio

PowerShares Golden Dragon China Portfolio

PowerShares High Yield Equity Dividend Achievers ^TM Portfolio

PowerShares International Dividend Achievers^TM Portfolio

PowerShares S&P 500^® High Quality Portfolio

PowerShares Water Resources Portfolio

PowerShares WilderHill Clean Energy Portfolio

PowerShares WilderHill Progressive Energy Portfolio

PowerShares Zacks Micro Cap Portfolio

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 a Fund grows, (v) whether fee levels reflect any possible economies of scale for the benefit of Fund shareholders, (vi) comparisons of services rendered to and amounts paid by 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 staffing, including operational support 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 and/or oversight of execution of portfolio transactions on behalf of the Funds. The Trustees also reviewed information on the performance of the Funds and their underlying indexes for the one-year, three-year, five-year, ten-year and since-inception periods ended December 31, 2014, as applicable, including reports for each of those periods on the correlation and tracking error between each Fund’s performance and the performance of its underlying index, as well as the Adviser’s analysis of the tracking error between PowerShares Global Listed Private Equity Portfolio and its underlying index. In reviewing the tracking error report, the Trustees considered information provided by Ibbotson Associates, a consultant to the Independent Trustees, with respect to general expected tracking error ranges and various explanations for any tracking error. The Trustees noted that for each applicable period the

67

Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)

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, effort and resources 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 advisory fee and net expense ratio, as compared to information compiled by the Adviser from Lipper Inc. databases on the advisory fees and net expense ratios of comparable exchange-traded funds (“ETFs”), open-end (non-ETF) index funds and open-end (non-ETF) actively-managed funds. The Trustees noted that the annual advisory fee charged to each Fund is:

— 0.50% of the Fund’s average daily net assets for each Fund other than PowerShares Dividend Achievers™ Portfolio, PowerShares High Yield Equity Dividend Achievers™ Portfolio, PowerShares International Dividend Achievers™ Portfolio, PowerShares FTSE RAFI US 1000 Portfolio, PowerShares FTSE RAFI US 1500 Small-Mid Portfolio, PowerShares Fundamental Pure Large Core Portfolio, PowerShares Fundamental Pure Large Growth Portfolio, PowerShares Fundamental Pure Large Value Portfolio, PowerShares Fundamental Pure Mid Core Portfolio, PowerShares Fundamental Pure Mid Growth Portfolio, PowerShares Fundamental Pure Mid Value Portfolio, PowerShares Fundamental Pure Small Core Portfolio, PowerShares Fundamental Pure Small Growth Portfolio, PowerShares Fundamental Pure Small Value Portfolio and PowerShares S&P 500^® High Quality Portfolio;

— 0.40% of the Fund’s average daily net assets for each of PowerShares Dividend Achievers™ Portfolio, PowerShares High Yield Equity Dividend Achievers™ Portfolio and PowerShares International Dividend Achievers™ Portfolio; and

— 0.29% of the Fund’s average daily net assets for each of PowerShares FTSE RAFI US 1000 Portfolio, PowerShares FTSE RAFI US 1500 Small-Mid Portfolio, PowerShares Fundamental Pure Large Core Portfolio¹, PowerShares Fundamental Pure Large Growth Portfolio, PowerShares Fundamental Pure Large Value Portfolio, PowerShares Fundamental Pure Mid Core Portfolio¹, PowerShares Fundamental Pure Mid Growth Portfolio, PowerShares Fundamental Pure Mid Value Portfolio, PowerShares Fundamental Pure Small Core Portfolio¹, PowerShares Fundamental Pure Small Growth Portfolio, PowerShares Fundamental Pure Small Value Portfolio and PowerShares S&P 500^® High Quality Portfolio.

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, 2016, as set forth below:

— 0.60%, excluding interest expenses, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses, for each of PowerShares DWA NASDAQ Momentum Portfolio and PowerShares Dynamic Market Portfolio;

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

— 0.39%, excluding interest expenses, offering costs, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses, for each of PowerShares FTSE RAFI US 1000 Portfolio, PowerShares FTSE RAFI US 1500 Small-Mid Portfolio, PowerShares Fundamental Pure Large Core Portfolio², PowerShares Fundamental Pure Large Growth Portfolio, PowerShares Fundamental Pure Large Value Portfolio, PowerShares Fundamental Pure Mid Core Portfolio², PowerShares Fundamental Pure Mid Growth Portfolio, PowerShares Fundamental Pure Mid Value Portfolio, PowerShares Fundamental Pure Small Core Portfolio², PowerShares Fundamental Pure Small Growth Portfolio and PowerShares Fundamental Pure Small Value Portfolio;

— 0.29%, excluding interest expenses, offering costs, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses, for PowerShares S&P 500^® High Quality Portfolio;

¹  The annual management fee for PowerShares Fundamental Pure Large Core Portfolio, PowerShares Fundamental Pure Mid Core Portfolio and PowerShares Fundamental Pure Small Core Portfolio will be reduced to 0.25% of each Fund’s average daily net assets, effective May 22, 2015.

²  The Expense Cap for PowerShares Fundamental Pure Large Core Portfolio, PowerShares Fundamental Pure Mid Core Portfolio and PowerShares Fundamental Pure Small Core Portfolio will be reduced such that annual operating expenses of each Fund will not exceed 0.25% of its average daily net assets, effective May 22, 2015.

68

Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)

— 0.60%, excluding interest expenses, offering costs, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses, for PowerShares DWA Basic Materials Momentum Portfolio, PowerShares DWA Consumer Cyclicals Momentum Portfolio, PowerShares DWA Consumer Staples Momentum Portfolio, PowerShares DWA Energy Momentum Portfolio, PowerShares DWA Financial Momentum Portfolio, PowerShares DWA Healthcare Momentum Portfolio, PowerShares DWA Industrials Momentum Portfolio, PowerShares DWA Technology Momentum Portfolio and PowerShares DWA Utilities Momentum Portfolio; and

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

The Trustees noted that the Adviser represented that it does not serve as the investment adviser to any clients, other than other ETFs also overseen by the Trustees, with comparable investment strategies as the Funds, but that the Adviser provides sub-advisory services to clients with comparable investment strategies as certain of the Funds. The Trustees further noted the Adviser’s explanation with respect to the sub-advisory fees it receives for such services in comparison to the advisory fees charged to the Funds. The Trustees noted that the advisory fees for certain Funds were equal to or lower than the median advisory fees of their ETF and open-end index peer funds as illustrated in the table below. The Trustees also noted that the advisory fees for all of the Funds were lower than the median advisory fees of their open-end actively-managed peer funds.

PowerShares Fund	Equal to/Lower than ETF Median	Equal to/Lower than Open-End Index Fund Median3	Equal to/Lower than Open-End Active Fund Median
PowerShares Aerospace & Defense Portfolio		N/A	X
PowerShares Buyback Achievers Portfolio			X
PowerShares Cleantech Portfolio		N/A	X
PowerShares Dividend Achievers Portfolio		X	X
PowerShares DWA Basic Materials Momentum Portfolio		N/A	X
PowerShares DWA Consumer Cyclicals Momentum Portfolio		N/A	X
PowerShares DWA Consumer Staples Momentum Portfolio	X	N/A	X
PowerShares DWA Energy Momentum Portfolio		N/A	X
PowerShares DWA Financial Momentum Portfolio		N/A	X
PowerShares DWA Healthcare Momentum Portfolio		N/A	X
PowerShares DWA Industrials Momentum Portfolio		N/A	X
PowerShares DWA Momentum Portfolio		X	X
PowerShares DWA NASDAQ Momentum Portfolio		X	X
PowerShares DWA Technology Momentum Portfolio			X
PowerShares DWA Utilities Momentum Portfolio			X
PowerShares Dynamic Biotechnology & Genome Portfolio		N/A	X
PowerShares Dynamic Building & Construction Portfolio		N/A	X
PowerShares Dynamic Energy Exploration & Production Portfolio		N/A	X
PowerShares Dynamic Food & Beverage Portfolio	X	N/A	X
PowerShares Dynamic Large Cap Growth Portfolio			X
PowerShares Dynamic Large Cap Value Portfolio			X
PowerShares Dynamic Leisure and Entertainment Portfolio		N/A	X
PowerShares Dynamic Market Portfolio			X
PowerShares Dynamic Media Portfolio		N/A	X
PowerShares Dynamic Networking Portfolio			X
PowerShares Dynamic Oil & Gas Services Portfolio		N/A	X
PowerShares Dynamic Pharmaceuticals Portfolio		N/A	X
PowerShares Dynamic Retail Portfolio		N/A	X

69

Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)

PowerShares Fund	Equal to/Lower than ETF Median	Equal to/Lower than Open-End Index Fund Median3	Equal to/Lower than Open-End Active Fund Median
PowerShares Dynamic Semiconductors Portfolio			X
PowerShares Dynamic Software Portfolio			X
PowerShares Financial Preferred Portfolio	X	N/A	X
PowerShares FTSE RAFI US 1000 Portfolio			X
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio	X		X
PowerShares Fundamental Pure Large Core Portfolio		X	X
PowerShares Fundamental Pure Large Growth Portfolio		X	X
PowerShares Fundamental Pure Large Value Portfolio			X
PowerShares Fundamental Pure Mid Core Portfolio			X
PowerShares Fundamental Pure Mid Growth Portfolio	X	X	X
PowerShares Fundamental Pure Mid Value Portfolio		X	X
PowerShares Fundamental Pure Small Core Portfolio	X		X
PowerShares Fundamental Pure Small Growth Portfolio		X	X
PowerShares Fundamental Pure Small Value Portfolio	X	X	X
PowerShares Global Listed Private Equity Portfolio	X	N/A	X
PowerShares Golden Dragon China Portfolio	X	N/A	X
PowerShares High Yield Equity Dividend Achievers Portfolio		X	X
PowerShares International Dividend Achievers Portfolio	X	X	X
PowerShares S&P 500 High Quality Portfolio			X
PowerShares Water Resources Portfolio		N/A	X
PowerShares WilderHill Clean Energy Portfolio		N/A	X
PowerShares WilderHill Progressive Energy Portfolio		N/A	X
PowerShares Zacks Micro Cap Portfolio			X

³  The information provided by the Adviser indicated that certain Funds did not have open-end index fund peers. Those Funds have been designated with an “N/A” for not available.

The Trustees determined that the advisory fees were reasonable, noting the nature of the indexes, the distinguishing factors of the Funds, and the administrative, operational and management oversight costs for the Adviser. The Trustees noted that the net expense ratios for certain Funds were equal to or lower than the median net expense ratios of their ETF and open-end index peer funds as illustrated in the table below. The Trustees also noted that the net expense ratios for all of the Funds were lower than the median net expense ratios of their open-end actively-managed peer funds.

PowerShares Fund	Equal to/Lower than ETF Median	Equal to/Lower than Open-End Index Fund Median	Equal to/Lower than Open-End Active Fund Median
PowerShares Aerospace & Defense Portfolio		N/A	X
PowerShares Buyback Achievers Portfolio			X
PowerShares Cleantech Portfolio		N/A	X
PowerShares Dividend Achievers Portfolio		X	X
PowerShares DWA Basic Materials Momentum Portfolio		N/A	X
PowerShares DWA Consumer Cyclicals Momentum Portfolio		N/A	X
PowerShares DWA Consumer Staples Momentum Portfolio		N/A	X
PowerShares DWA Energy Momentum Portfolio		N/A	X
PowerShares DWA Financial Momentum Portfolio		N/A	X

70

Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)

PowerShares Fund	Equal to/Lower than ETF Median	Equal to/Lower than Open-End Index Fund Median	Equal to/Lower than Open-End Active Fund Median
PowerShares DWA Healthcare Momentum Portfolio		N/A	X
PowerShares DWA Industrials Momentum Portfolio		N/A	X
PowerShares DWA Momentum Portfolio		X	X
PowerShares DWA NASDAQ Momentum Portfolio		X	X
PowerShares DWA Technology Momentum Portfolio		X	X
PowerShares DWA Utilities Momentum Portfolio		X	X
PowerShares Dynamic Biotechnology & Genome Portfolio		N/A	X
PowerShares Dynamic Building & Construction Portfolio		N/A	X
PowerShares Dynamic Energy Exploration & Production Portfolio		N/A	X
PowerShares Dynamic Food & Beverage Portfolio		N/A	X
PowerShares Dynamic Large Cap Growth Portfolio			X
PowerShares Dynamic Large Cap Value Portfolio			X
PowerShares Dynamic Leisure and Entertainment Portfolio		N/A	X
PowerShares Dynamic Market Portfolio			X
PowerShares Dynamic Media Portfolio		N/A	X
PowerShares Dynamic Networking Portfolio		X	X
PowerShares Dynamic Oil & Gas Services Portfolio		N/A	X
PowerShares Dynamic Pharmaceuticals Portfolio		N/A	X
PowerShares Dynamic Retail Portfolio		N/A	X
PowerShares Dynamic Semiconductors Portfolio		X	X
PowerShares Dynamic Software Portfolio		X	X
PowerShares Financial Preferred Portfolio	X	N/A	X
PowerShares FTSE RAFI US 1000 Portfolio			X
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio		X	X
PowerShares Fundamental Pure Large Core Portfolio		X	X
PowerShares Fundamental Pure Large Growth Portfolio		X	X
PowerShares Fundamental Pure Large Value Portfolio			X
PowerShares Fundamental Pure Mid Core Portfolio		X	X
PowerShares Fundamental Pure Mid Growth Portfolio	X	X	X
PowerShares Fundamental Pure Mid Value Portfolio		X	X
PowerShares Fundamental Pure Small Core Portfolio		X	X
PowerShares Fundamental Pure Small Growth Portfolio		X	X
PowerShares Fundamental Pure Small Value Portfolio		X	X
PowerShares Global Listed Private Equity Portfolio		N/A	X
PowerShares Golden Dragon China Portfolio	X	N/A	X
PowerShares High Yield Equity Dividend Achievers Portfolio		X	X
PowerShares International Dividend Achievers Portfolio	X	X	X
PowerShares S&P 500 High Quality Portfolio	X	X	X
PowerShares Water Resources Portfolio		N/A	X
PowerShares WilderHill Clean Energy Portfolio		N/A	X
PowerShares WilderHill Progressive Energy Portfolio		N/A	X
PowerShares Zacks Micro Cap Portfolio			X

71

Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)

The Trustees noted that a significant component of the non-advisory fee expenses was the license fees paid by the Funds, and noted 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.

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 overall profitability as well as the estimated profitability to the Adviser from its relationship to each Fund. The Trustees concluded that the overall and estimated profitability to the Adviser was not unreasonable.

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 DWA NASDAQ Momentum 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.

72

(This Page Intentionally Left Blank)

(This Page Intentionally Left Blank)

Proxy Voting Policies and Procedures

A description of the Trust’s 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 each Fund 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 Trust files its complete schedule of portfolio holdings for the Funds 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, DC; information on the operation of the Public Reference Room may be obtained by calling (800) SEC-0330.

Frequency Distribution of Discounts and Premiums

A table showing the number of days the market price of each Fund’s shares was greater than the Fund’s net asset value, and the number of days it was less than the Fund’s net asset value (i.e., premium or discount) for the most recently completed calendar year, and the calendar quarters since that year end (or the life of the Fund, if shorter) may be found at the Fund’s website at www.invescopowershares.com.

©2015 Invesco PowerShares Capital Management LLC			P-PS-AR-2
3500 Lacey Road, Suite 700 Downers Grove, IL 60515
invescopowershares.com    800.983.0903		@PowerShares

April 30, 2015

2015 Annual Report to Shareholders

PWB	PowerShares Dynamic Large Cap Growth Portfolio
PWV	PowerShares Dynamic Large Cap Value Portfolio
PXLC	PowerShares Fundamental Pure Large Core Portfolio
PXLG	PowerShares Fundamental Pure Large Growth Portfolio
PXLV	PowerShares Fundamental Pure Large Value Portfolio
PXMC	PowerShares Fundamental Pure Mid Core Portfolio
PXMG	PowerShares Fundamental Pure Mid Growth Portfolio
PXMV	PowerShares Fundamental Pure Mid Value Portfolio
PXSC	PowerShares Fundamental Pure Small Core Portfolio
PXSG	PowerShares Fundamental Pure Small Growth Portfolio
PXSV	PowerShares Fundamental Pure Small Value Portfolio
PZI	PowerShares Zacks Micro Cap Portfolio

Table of Contents

The Market Environment	3
Manager’s Analysis	4
Fundamental Pure and Style Portfolios
Schedules of Investments
PowerShares Dynamic Large Cap Growth Portfolio (PWB)	40
PowerShares Dynamic Large Cap Value Portfolio (PWV)	41
PowerShares Fundamental Pure Large Core Portfolio (PXLC)	42
PowerShares Fundamental Pure Large Growth Portfolio (PXLG)	44
PowerShares Fundamental Pure Large Value Portfolio (PXLV)	45
PowerShares Fundamental Pure Mid Core Portfolio (PXMC)	47
PowerShares Fundamental Pure Mid Growth Portfolio (PXMG)	49
PowerShares Fundamental Pure Mid Value Portfolio (PXMV)	51
PowerShares Fundamental Pure Small Core Portfolio (PXSC)	54
PowerShares Fundamental Pure Small Growth Portfolio (PXSG)	59
PowerShares Fundamental Pure Small Value Portfolio (PXSV)	64
PowerShares Zacks Micro Cap Portfolio (PZI)	72
Statements of Assets and Liabilities	78
Statements of Operations	80
Statements of Changes in Net Assets	82
Financial Highlights	86
Notes to Financial Statements	92
Report of Independent Registered Public Accounting Firm	104
Fees and Expenses	105
Tax Information	107
Trustees and Officers	108
Board Considerations Regarding Continuation of Investment Advisory Agreement	113

2

The Market Environment

Domestic Equity

Slow and steady improvement in the US economy and continued low interest rates led the US equity market higher during the fiscal year ended April 30, 2015. As the US economy continued along a slow growth path, the US Federal Reserve steadily reduced its asset purchase program, finally ending all purchases in October 2014. The reporting period began with corporate earnings bouncing back from a weather-related downturn resulting from an unusually harsh winter that negatively affected consumer spending. Stocks generally rallied through the summer of 2014 despite political upheaval in Ukraine and signs of economic sluggishness in China. In mid-September, as investors wrestled with evidence that economic growth appeared to be stronger in the US than in the rest of the world, the price of oil began a sharp and prolonged decline, causing US equities to fall. US equities recovered before the end of calendar year 2014, however. As calendar year 2015 began, investors were generally heartened by positive US economic data, but there was concern that if Greece failed to reach an agreement with the eurozone on a financial bailout plan, the repercussions would be felt more broadly. On balance, however, the general trend for US equities was positive.

3

PWB	Manager’s Analysis
	PowerShares Dynamic Large Cap Growth Portfolio (PWB)

As an index fund, the PowerShares Dynamic Large Cap Growth Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Dynamic Large Cap Growth Intellidex^SM Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks of large capitalization companies that comprise the Index.

NYSE Arca, Inc. (the “Index Provider”) compiles, maintains and calculates the Index. Strictly in accordance with its existing guidelines and mandated procedures, the Index Provider selects 50 large capitalization U.S. growth stocks for inclusion in the Index principally on the basis of their capital appreciation potential. The Index Provider ranks the 2,000 largest U.S. stocks (by market capitalization) traded on the NYSE, NYSE MKT and the NASDAQ for investment potential using a proprietary model. The Index Provider segregates the universe of stocks into three size groups: large cap, mid cap and small cap. The Index Provider considers the 250 largest stocks to be large cap, it considers the next 750 stocks to be mid cap, and it considers the remaining 1,000 stocks to be small cap. The Index Provider divides large cap stocks into growth stocks and value stocks. The Index Provider bases a stock’s characterization as growth or value on a multi-factor methodology. The Index Provider then divides the large cap growth universe into two sub-groups based on market capitalization. The top quintile is one sub-group. The Index Provider includes 15 of the top-ranked relatively larger stocks in this sub-group, and they collectively receive 50% of the weight with each larger stock receiving approximately 3.3%. The bottom four quintiles are another sub-group. The Index Provider includes 35 of the top-ranked relatively smaller stocks in this sub-group, and they collectively receive 50% of the weight, with each smaller stock receiving approximately 1.4%. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2015, on a market price basis, the Fund returned 18.44%. On a net asset value (“NAV”) basis, the Fund returned 18.52%. During the same time period, the Index returned 19.24%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period.

During this same time period, the Russell 1000^® Growth Index (the “Benchmark Index”) returned 16.67%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 680 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of a benchmark composed of large cap growth stocks. The Benchmark Index was selected for its

recognition in the marketplace, and its performance comparison is a useful measure for investors as a broad representation of the large cap growth market.

The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an Index that employs a modified equal weighting and stock selection methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization.

Relative to the Benchmark Index, the Fund was most overweight in the consumer discretionary sector and most underweight the information technology sector during the fiscal year ended April 30, 2015, which contributed to the Fund’s outperformance.

For the fiscal year ended April 30, 2015, the consumer discretionary sector contributed most significantly to the Fund’s return, followed by the health care and information technology sectors, respectively. The telecommunication services sector (no longer held) was the only detracting sector.

Positions that contributed most significantly to the Fund’s return included NIKE, Inc., Class B, a consumer discretionary company (portfolio average weight of 3.4%), and Home Depot, Inc., a consumer discretionary company (portfolio average weight of 3.38%). Positions that detracted most significantly from the Fund’s return included Walgreens Boots Alliance, Inc., a consumer staples company (portfolio average weight of 1.37%), and AbbVie, Inc., a health care company (no longer held at fiscal year-end).

Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2015
Health Care	22.4
Consumer Discretionary	21.8
Information Technology	20.7
Consumer Staples	10.8
Financials	10.6
Industrials	5.6
Energy	5.3
Materials	2.7
Money Market Fund Plus Other Assets Less Liabilities	0.1

4

PowerShares Dynamic Large Cap Growth Portfolio (PWB) (continued)

Top Ten Fund Holdings (% of the Fund’s Net Assets) as of April 30, 2015
Security
Schlumberger Ltd.	3.8
Bristol-Myers Squibb Co.	3.6
Walt Disney Co. (The)	3.5
NIKE, Inc., Class B	3.5
MasterCard, Inc., Class A	3.4
Walgreens Boots Alliance, Inc.	3.4
Facebook, Inc., Class A	3.4
Apple, Inc.	3.3
Visa, Inc., Class A	3.3
Gilead Sciences, Inc.	3.3
Total	34.5

5

PowerShares Dynamic Large Cap Growth Portfolio (PWB) (continued)

Growth of a $10,000 Investment

Fund Performance History as of April 30, 2015

	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			10 Years Average Annualized			10 Years Cumulative			Fund Inception†
Index																						Average Annualized			Cumulative
Dynamic Large Cap Growth IntellidexSM Index		19.24	%		18.82	%		67.74	%		16.75	%		116.94	%		9.20	%		141.06	%		8.54	%		129.85	%
Russell 1000® Growth Index		16.67			16.60			58.51			15.49			105.49			9.62			150.61			9.00			139.97
Fund
NAV Return		18.52			18.11			64.75			16.01			110.15			8.49			125.90			7.82			114.92
Market Price Return		18.44			18.08			64.64			16.00			110.01			8.48			125.59			7.79			114.35

Fund Inception: March 3, 2005

Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2016. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.58%. The Financial Highlights section of the Shareholders Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund

at NAV and Market 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 and Benchmark 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 and Benchmark Index do 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.

^†  Fund, Index and Benchmark Index returns are based on the inception date of the Fund.

6

PWV	Manager’s Analysis
	PowerShares Dynamic Large Cap Value Portfolio (PWV)

As an index fund, the PowerShares Dynamic Large Cap Value Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Dynamic Large Cap Value Intellidex^SM Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks of large capitalization companies that comprise the Index.

NYSE Arca, Inc. (the “Index Provider”) compiles, maintains and calculates the Index. Strictly in accordance with its existing guidelines and mandated procedures, the Index Provider selects 50 large capitalization U.S. value stocks for inclusion in the Index principally on the basis of their capital appreciation potential. The Index Provider ranks the 2,000 largest U.S. stocks (by market capitalization) traded on the NYSE, NYSE MKT and the NASDAQ for investment potential using a proprietary model. The Index Provider segregates the universe of stocks into three size groups: large cap, mid cap and small cap. The Index Provider considers the 250 largest stocks to be large cap, it considers the next 750 stocks to be mid cap, and it considers the remaining 1,000 stocks to be small cap. The Index Provider divides large cap stocks into growth stocks and value stocks. The Index Provider bases a stock’s characterization as growth or value on a multi-factor methodology. The Index Provider then divides the large cap value universe into two sub-groups based on market capitalization. The top quintile is one sub-group. The Index Provider includes 15 of the top-ranked relatively larger stocks in this sub-group, and they collectively receive 50% of the weight with each larger stock receiving approximately 3.3%. The bottom four quintiles are another sub-group. The Index Provider includes 35 of the top-ranked relatively smaller stocks in this sub-group, and they collectively receive 50% of the weight, with each smaller stock receiving approximately 1.4%. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2015, on a market price basis, the Fund returned 8.60%. On a net asset value (“NAV”) basis, the Fund returned 8.56%. During the same time period, the Index returned 9.22%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period.

During this same time period, the Russell 1000^® Value Index (the “Benchmark Index”) returned 9.31%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 700 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of a benchmark similarly composed of large cap value stocks. The Benchmark Index was selected for

its recognition in the marketplace, and its performance comparison is a useful measure for investors as a broad representation of the large cap value market.

The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an Index that employs a modified equal weighting and stock selection methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization.

Relative to the Benchmark Index, the Fund was most overweight in the information technology sector and most underweight in the financials sector during the fiscal year ended April 30, 2015, which contributed to the Fund’s underperformance.

For the fiscal year ended April 30, 2015, the health care sector contributed most significantly to the Fund’s return, followed by the information technology and financials sectors, respectively. The energy sector was the only detracting sector.

Positions that contributed most significantly to the Fund’s return included Intel Corp., an information technology company (portfolio average weight of 3.42%), and Cisco Systems, Inc., an information technology company (portfolio average weight of 3.35%). Positions that detracted most significantly from the Fund’s return included International Business Machines Corp., an information technology company (portfolio average weight of 3.27%), and Exxon Mobil Corp., an energy company (portfolio average weight of 3.3%).

Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2015
Information Technology	22.4
Financials	18.2
Health Care	11.1
Energy	11.0
Consumer Staples	9.1
Utilities	8.5
Telecommunication Services	8.1
Consumer Discretionary	4.3
Industrials	4.2
Materials	3.1
Other Assets Less Liabilities	0.0

7

PowerShares Dynamic Large Cap Value Portfolio (PWV) (continued)

Top Ten Fund Holdings (% of the Fund’s Net Assets) as of April 30, 2015
Security
Microsoft Corp.	3.7
International Business Machines Corp.	3.5
Chevron Corp.	3.5
JPMorgan Chase & Co.	3.5
Verizon Communications, Inc.	3.4
Merck & Co., Inc.	3.4
Wells Fargo & Co.	3.4
AT&T, Inc.	3.4
Oracle Corp.	3.3
Exxon Mobil Corp.	3.3
Total	34.4

8

PowerShares Dynamic Large Cap Value Portfolio (PWV) (continued)

Growth of a $10,000 Investment

Fund Performance History as of April 30, 2015

	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			10 Years Average Annualized			10 Years Cumulative			Fund Inception†
Index																						Average Annualized			Cumulative
Dynamic Large Cap Value IntellidexSM Index		9.22	%		18.10	%		64.73	%		14.99	%		101.03	%		11.07	%		185.84	%		10.56	%		177.21	%
Russell 1000® Value Index		9.31			17.20			60.97			13.39			87.41			7.51			106.24			6.99			98.61
Fund
NAV Return		8.56			17.33			61.54			14.25			94.68			10.33			167.21			9.81			158.86
Market Price Return		8.60			17.36			61.64			14.23			94.50			10.31			166.76			9.80			158.43

Fund Inception: March 3, 2005

Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2016. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.57%. The Financial Highlights section of the Shareholders Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund

at NAV and Market 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 and Benchmark 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 and Benchmark Index do 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.

^†  Fund, Index and Benchmark Index returns are based on the inception date of the Fund.

9

PXLC	Manager’s Analysis
	PowerShares Fundamental Pure Large Core Portfolio (PXLC)

Effective after the close of markets on May 22, 2015, the Fund’s name changed from PowerShares Fundamental Pure Large Core Portfolio to PowerShares Russell Top 200 Equal Weight Portfolio and the underlying index changed from RAFI^® Fundamental Large Core Index (the “Previous Index”) to Russell Top 200 Equal Weight Index (the “Index”). At that time, the Fund also changed its ticker symbol from PXLC to EQWL and changed its investment objective and investment policies. The discussion that follows pertains to the Fund’s performance tracking the Previous Index for the fiscal year ended April 30, 2015.

As an index fund, the PowerShares Fundamental Pure Large Core Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Index and, through May 22, 2015, the Previous Index. The Fund generally will invest at least 90% of its total assets in the component securities that comprise the Index and, through May 22, 2015, the Previous Index.

Research Affiliates, LLC (the “Index Provider”) compiles the Previous Index. Strictly in accordance with its existing guidelines and mandated procedures, the Index Provider identifies the common stocks for inclusion in the Previous Index from a universe of the 2,500 largest U.S. companies based on fundamental weight. The use of the word “Fundamental” in the Fund’s name reflects the fact that, in identifying common stocks, the Index Provider uses fundamental measures of company size, rather than market capitalization (company share price multiplied by number of shares outstanding). The Index Provider uses the following fundamental measures to include common stocks in the Previous Index: book value, cash flow, sales and dividends. The Index Provider calculates a composite fundamental weight for each common stock by equally weighting the above four fundamental measures. The Index Provider then ranks each common stock by its fundamental weight and, based on this ranking, divides the common stocks into three size groups: “large,” “mid” and “small.” The common stocks it ranks in the top 70% of the eligible universe by fundamental weight comprise the “large” size group, the next 20% comprise the “mid” size group, and the final 10% comprise the “small” size group. The Index Provider further divides the “large” size group into “growth,” “core” or “value” subsets based on fundamental measures. The Previous Index is composed only of those common stocks that the Index Provider classifies as both “large” and “core” and weights them according to their composite fundamental weight. The Fund generally invests in all of the securities comprising the Previous Index in proportion to their weightings in the Previous Index.

For the fiscal year ended April 30, 2015, on a market price basis, the Fund returned 10.38%. On a net asset value (“NAV”) basis, the Fund returned 10.52%. During the same time period, the Previous Index returned 10.95%. During the fiscal year, the Fund fully replicated the components of the Previous Index; therefore,

the Fund’s performance, on a NAV basis, differed from the return of the Previous Index primarily due to fees and operating expenses that the Fund incurred during the period.

During this same time period, the Russell 1000^® Index (the “Benchmark Index”) returned 13.00%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 1,040 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of a large capitalization equity benchmark. The Benchmark Index was selected for its recognition in the marketplace, and its performance comparison is a useful measure for investors as a broad representation of the U.S. large capitalization equity market.

The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an Index that employs a fundamental weighting and stock selection methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization. Relative to the Benchmark Index, the Fund was overweight in the industrials sector and most underweight in the information technology sector during the fiscal year ended April 30, 2015, which contributed to the Fund’s underperformance.

For the fiscal year ended April 30, 2015, the health care sector contributed most significantly to the Fund’s return, followed by the consumer staples and consumer discretionary sectors, respectively. The energy sector was the only detracting sector.

Positions that contributed most significantly to the Fund’s return included Intel Corp., an information technology company (portfolio average weight of 4.82%), and UnitedHealth Group, Inc., a health care company (portfolio average weight of 2.49%). Positions that detracted most significantly from the Fund’s return included International Business Machines Corp., an information technology company (portfolio average weight of 3.6%), and Caterpillar, Inc., an industrials company (portfolio average weight of 1.59%).

10

PowerShares Fundamental Pure Large Core Portfolio (PXLC) (continued)

Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2015
Health Care	17.0
Financials	16.3
Industrials	15.9
Consumer Staples	14.0
Consumer Discretionary	13.5
Information Technology	9.9
Energy	5.4
Materials	4.1
Utilities	3.8
Money Market Fund Plus Other Assets Less Liabilities	0.1
Top Ten Fund Holdings (% of the Fund’s Net Assets) as of April 30, 2015
Security
Berkshire Hathaway, Inc., Class B	5.8
Johnson & Johnson	5.2
Intel Corp.	4.7
International Business Machines Corp.	3.5
PepsiCo, Inc.	3.1
CVS Health Corp.	3.0
UnitedHealth Group, Inc.	2.9
Home Depot, Inc. (The)	2.7
Philip Morris International, Inc.	2.7
Ford Motor Co.	2.0
Total	35.6

11

PowerShares Fundamental Pure Large Core Portfolio (PXLC) (continued)

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

Fund Performance History as of April 30, 2015

	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			Fund Inception†
Index																Average Annualized			Cumulative
Blended-RAFI® Fundamental Large Core Index††		10.95	%		17.47	%		62.11	%		14.42	%		96.15	%		8.12	%		92.88	%
Russell 1000® Index		13.00			16.95			59.96			14.47			96.53			7.38			82.09
Fund
NAV Return		10.52			17.01			60.19			13.89			91.58			7.51			83.82
Market Price Return		10.38			16.98			60.07			13.87			91.43			7.49			83.54

Fund Inception: December 1, 2006

Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2016. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.60% and the net annual operating expense ratio was indicated as 0.39%. The Financial Highlights section of the Shareholders Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market 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.

Blended-Index and Benchmark Index performance results are based upon a hypothetical investment in its constituent securities. Blended-Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Blended-Index and Benchmark Index do 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.

^†  Fund, Blended-Index and Benchmark Index returns are based on the inception date of the Fund.

^††  The Blended-RAFI^® Fundamental Large Core Index performance is comprised of the performance of the Dynamic Large Cap Intellidex^SM Index, the Fund’s previous underlying index, from Fund inception through the conversion date, June 16, 2011, followed by the performance of the Previous Index starting from the conversion date through April 30, 2015.

12

PXLG	Manager’s Analysis
	PowerShares Fundamental Pure Large Growth Portfolio (PXLG)

Effective after the close of markets on May 22, 2015, the Fund’s name changed from PowerShares Fundamental Pure Large Growth Portfolio to PowerShares Russell Top 200 Pure Growth Portfolio and the underlying index changed from RAFI^® Fundamental Large Growth Index (the “Previous Index”) to Russell Top 200 Pure Growth Index (the “Index”). At that time the Fund also changed its investment objective and investment policies. The discussion that follows pertains to the Fund’s performance tracking its Previous Index for the fiscal year ended April 30, 2015.

As an index fund, the PowerShares Fundamental Pure Large Growth Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Index, and, through May 22, 2015, the Previous Index. The Fund generally will invest at least 90% of its total assets in the component securities that comprise the Index and, through May 22, 2015, the Previous Index.

Research Affiliates, LLC (the “Index Provider”) compiles the Previous Index. Strictly in accordance with its existing guidelines and mandated procedures, the Index Provider identifies the common stocks for inclusion in the Previous Index from a universe of the 2,500 largest U.S. companies based on fundamental weight. The use of the word “Fundamental” in the Fund’s name reflects the fact that, in identifying common stocks, the Index Provider uses fundamental measures of company size, rather than market capitalization (company share price multiplied by number of shares outstanding). The Index Provider uses the following fundamental measures to include common stocks in the Previous Index: book value, cash flow, sales and dividends. The Index Provider calculates a composite fundamental weight for each common stock by equally weighting the above four fundamental measures. The Index Provider then ranks each common stock by its fundamental weight and, based on this ranking, divides the common stocks into three size groups: “large,” “mid” and “small.” The common stocks it ranks in the top 70% of the eligible universe by fundamental weight comprise the “large” size group, the next 20% comprise the “mid” size group, and the final 10% comprise the “small” size group. The Index Provider further divides the “large” size group into “growth,” “core” or “value” subsets based on fundamental measures. The Previous Index is composed only of those common stocks that the Index Provider classifies as both “large” and “growth” and weights them according to their composite fundamental weight. The Fund generally invests in all of the securities comprising the Previous Index in proportion to their weightings in the Previous Index.

For the fiscal year ended April 30, 2015, on a market price basis, the Fund returned 16.46%. On a net asset value (“NAV”) basis, the Fund returned 16.49%. During the same time period, the Previous Index returned 16.96%. During the fiscal year, the Fund

fully replicated the components of the Previous Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Previous Index primarily due to fees and expenses incurred during the period.

During this same time period, the Russell 1000^® Growth Index (the “Benchmark Index”) returned 16.67%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 680 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of a similar large cap growth benchmark. The Benchmark Index was selected for its recognition in the marketplace, and its performance comparison is a useful measure for investors as a broad representation of the U.S. large capitalization equity growth market.

The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an Index that employs a fundamental weighting and stock selection methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization.

Relative to the Benchmark Index, the Fund was most overweight in the information technology sector and most underweight in the industrials sector during the fiscal year ended April 30, 2015, which contributed to the Fund’s underperformance.

For the fiscal year ended April 30, 2015, the information technology sector contributed most significantly to the Fund’s return, followed by the health care and consumer discretionary sectors, respectively. The energy sector was the only detracting sector.

Positions that contributed most significantly to the Fund’s return included Apple, Inc., an information technology company (portfolio average weight of 8.95%), and Microsoft Corp., an information technology company (portfolio average weight of 8.64%). Positions that detracted most significantly from the Fund’s return included Halliburton Co., an energy company (portfolio average weight of 1.22%), and QUALCOMM, Inc., an information technology company (portfolio average weight of 2.11%).

13

PowerShares Fundamental Pure Large Growth Portfolio (PXLG) (continued)

Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2015
Information Technology	37.4
Health Care	13.6
Financials	11.7
Consumer Discretionary	11.6
Energy	9.8
Consumer Staples	7.8
Industrials	3.5
Materials	2.9
Telecommunication Services	1.7
Money Market Fund Plus Other Assets Less Liabilities	0.0
Top Ten Fund Holdings (% of the Fund’s Net Assets) as of April 30, 2015
Security
Apple, Inc.	10.0
Microsoft Corp.	9.1
Wells Fargo & Co.	8.0
Merck & Co., Inc.	5.7
Coca-Cola Co. (The)	4.5
Comcast Corp., Class A	3.9
Cisco Systems, Inc.	3.7
Walt Disney Co. (The)	3.2
Oracle Corp.	2.8
Schlumberger Ltd.	2.7
Total	53.6

14

PowerShares Fundamental Pure Large Growth Portfolio (PXLG) (continued)

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

Fund Performance History as of April 30, 2015

	1 Year			3 Years Average Annualized			3 Years Cumulative			Fund Inception†
Index										Average Annualized			Cumulative
RAFI® Fundamental Large Growth Index		16.96	%		17.75	%		63.27	%		17.44	%		86.36	%
Russell 1000® Growth Index		16.67			16.60			58.51			16.90			83.05
Fund
NAV Return		16.49			17.28			61.30			16.98			83.58
Market Price Return		16.46			17.27			61.27			16.99			83.65

Fund Inception: June 16, 2011

Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2016. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.45% and the net annual operating expense ratio was indicated as 0.39%. The Financial Highlights section of the Shareholders Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund

at NAV and Market 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 and Benchmark 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 and Benchmark Index do 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.

^†  Fund, Index and Benchmark Index returns are based on the inception date of the Fund.

15

PXLV	Manager’s Analysis
	PowerShares Fundamental Pure Large Value Portfolio (PXLV)

Effective after the close of markets on May 22, 2015, the Fund’s name changed from PowerShares Fundamental Pure Large Value Portfolio to PowerShares Russell Top 200 Pure Value Portfolio and the underlying index changed from RAFI^® Fundamental Large Value Index (the “Previous Index”) to Russell Top 200 Pure Value Index (the “Index”). At that time the Fund also changed its investment objective and investment policies. The discussion that follows pertains to the Fund’s performance tracking the Previous Index for the fiscal year ended April 30, 2015.

As an index fund, the PowerShares Fundamental Pure Large Value Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Index and, through May 22, 2015, the Previous Index. The Fund generally will invest at least 90% of its total assets in the component securities that compose the Index and, through May 22, the Previous Index.

Research Affiliates, LLC (the “Index Provider”) compiles the Previous Index. Strictly in accordance with its existing guidelines and mandated procedures, the Index Provider identifies the common stocks for inclusion in the Previous Index from a universe of the 2,500 largest U.S. companies based on fundamental weight. The use of the word “Fundamental” in the Fund’s name reflects the fact that, in identifying common stocks, the Index Provider uses fundamental measures of company size, rather than market capitalization (company share price multiplied by number of shares outstanding). The Index Provider uses the following fundamental measures to include common stocks in the Previous Index: book value, cash flow, sales and dividends. The Index Provider calculates a composite fundamental weight for each common stock by equally weighting the above four fundamental measures. The Index Provider then ranks each common stock by its fundamental weight and, based on this ranking, divides the common stocks into three size groups: “large,” “mid” and “small.” The common stocks it ranks in the top 70% of the eligible universe by fundamental weight comprise the “large” size group, the next 20% comprise the “mid” size group, and the final 10% comprise the “small” size group. The Index Provider further divides the “large” size group into “growth,” “core” or “value” subsets based on fundamental measures. The Previous Index is composed only of those common stocks that the Index Provider classifies as both “large” and “value” and weights them according to their composite fundamental weight. The Fund generally invests in all of the securities comprising the Previous Index in proportion to their weightings in the Previous Index.

For the fiscal year ended April 30, 2015, on a market price basis, the Fund returned 6.41%. On a net asset value (“NAV”) basis, the Fund returned 6.41%. During the same time period, the Previous Index returned 6.82%. During the fiscal year, the Fund fully replicated the components of the Previous Index; therefore, the

Fund’s performance, on a NAV basis, differed from the return of the Previous Index primarily due to fees and operating expenses incurred by the Fund.

During this same time period, the Russell 1000^® Value Index (the “Benchmark Index”) returned 9.31%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 700 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of a similar large cap value benchmark. The Benchmark Index was selected for its recognition in the marketplace, and its performance comparison is a useful measure for investors as a broad representation of the U.S. large capitalization value equity market.

The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an Index that employs a fundamental weighting and stock selection methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization.

Relative to the Benchmark Index, the Fund was most overweight in the energy sector and most underweight in the information technology sector during the fiscal year ended April 30, 2015, which contributed to the Fund’s underperformance.

For the fiscal year ended April 30, 2015, the financials sector contributed most significantly to the Fund’s return, followed by the health care and consumer discretionary sectors, respectively. The energy sector detracted most significantly from the Fund’s return, followed by the materials sector.

Positions that contributed most significantly to the Fund’s return included JPMorgan Chase & Co., a financials company (portfolio average weight of 4.65%), and Anthem, Inc., a health care company (portfolio average weight of 1.13%). Positions that detracted most significantly from the Fund’s return included Exxon Mobil Corp., an energy company (portfolio average weight of 7.96%), and Chevron Corp., an energy company (portfolio average weight of 5.5%).

16

PowerShares Fundamental Pure Large Value Portfolio (PXLV) (continued)

Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2015
Financials	24.6
Energy	18.5
Consumer Staples	12.3
Health Care	9.7
Telecommunication Services	9.1
Utilities	7.7
Industrials	7.5
Consumer Discretionary	5.5
Materials	2.7
Information Technology	2.4
Money Market Fund Plus Other Assets Less Liabilities	0.0
Top Ten Fund Holdings (% of the Fund’s Net Assets) as of April 30, 2015
Security
Exxon Mobil Corp.	7.3
AT&T, Inc.	5.5
Chevron Corp.	5.2
JPMorgan Chase & Co.	4.9
General Electric Co.	4.9
Bank of America Corp.	4.3
Pfizer, Inc.	3.7
Verizon Communications, Inc.	3.6
Citigroup, Inc.	3.4
Procter & Gamble Co. (The)	3.0
Total	45.8

17

PowerShares Fundamental Pure Large Value Portfolio (PXLV) (continued)

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

Fund Performance History as of April 30, 2015

	1 Year			3 Years Average Annualized			3 Years Cumulative			Fund Inception†
Index										Average Annualized			Cumulative
RAFI® Fundamental Large Value Index		6.82	%		17.50	%		62.21	%		14.90	%		71.21	%
Russell 1000® Value Index		9.31			17.20			60.97			15.39			74.04
Fund
NAV Return		6.41			17.06			60.42			14.45			68.70
Market Price Return		6.41			17.09			60.52			14.49			68.91

Fund Inception: June 16, 2011

Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2016. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 1.05% and the net annual operating expense ratio was indicated as 0.39%. The Financial Highlights section of the Shareholders Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that

dividends and capital gain distributions have been reinvested in the Fund at NAV and Market 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 and Benchmark 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 and Benchmark Index do 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.

^†  Fund, Index and Benchmark Index returns are based on the inception date of the Fund.

18

PXMC	Manager’s Analysis
	PowerShares Fundamental Pure Mid Core Portfolio (PXMC)

Effective after the close of markets on May 22, 2015, the Fund’s name changed from PowerShares Fundamental Pure Mid Core Portfolio to PowerShares Russell Midcap Equal Weight Portfolio and the underlying index changed from RAFI^® Fundamental Mid Core Index (the “Previous Index”) to Russell Midcap Equal Weight Index (the “Index”). At that time the Fund also changed its ticker symbol from PXMC to EQWM and changed its investment objective and investment policies. The discussion that follows pertains to the Fund’s performance tracking the Previous Index for the fiscal year ended April 30, 2015.

As an index fund, the PowerShares Fundamental Pure Mid Core Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Index and, through May 22, 2015, the Previous Index The Fund generally will invest at least 90% of its total assets in the component securities that comprise the Index and, through May 22, 2015, the Previous Index.

Research Affiliates, LLC (the “Index Provider”) compiles the Previous Index. Strictly in accordance with its existing guidelines and mandated procedures, the Index Provider identifies the common stocks for inclusion in the Previous Index from a universe of the 2,500 largest U.S. companies based on fundamental weight. The use of the word “Fundamental” in the Fund’s name reflects the fact that, in identifying common stocks, the Index Provider uses fundamental measures of company size, rather than market capitalization (company share price multiplied by number of shares outstanding). The Index Provider uses the following fundamental measures to include common stocks in the Previous Index: book value, cash flow, sales and dividends. The Index Provider calculates a composite fundamental weight for each common stock by equally weighting the above four fundamental measures. The Index Provider then ranks each common stock by its fundamental weight and, based on this ranking, divides the common stocks into three size groups: “large,” “mid” and “small.” The common stocks it ranks in the top 70% of the eligible universe by fundamental weight comprise the “large” size group, the next 20% comprise the “mid” size group, and the final 10% comprise the “small” size group. The Index Provider further divides the “mid” size group into “growth,” “core” or “value” subsets based on fundamental measures. The Previous Index is composed only of those common stocks that the Index Provider classifies as both “mid” and “core” and weights them according to their composite fundamental weight. The Fund generally invests in all of the securities comprising the Previous Index in proportion to their weightings in the Previous Index.

For the fiscal year ended April 30, 2015, on a market price basis, the Fund returned 12.73%. On a net asset value (“NAV”) basis, the Fund returned 12.52%. During the same time period, the Previous Index returned 12.96%. During the fiscal year, the Fund fully replicated the components of the Previous Index; therefore,

the Fund’s performance, on a NAV basis, differed from the return of the Previous Index primarily due to fees and operating expenses incurred by the fund.

During this same time period, the Russell Midcap^® Index (the “Benchmark Index”) returned 13.30%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 840 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of a broad based midcap benchmark. The Benchmark Index was selected for its recognition in the marketplace, and its performance comparison is a useful measure for investors as a broad representation of the U.S. midcap equity market.

The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an index that employs a fundamental weighting and stock selection methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization.

Relative to the Benchmark Index, the Fund was most overweight in the financials sector and most underweight in the health care sector during the fiscal year ended April 30, 2015, which contributed to the Fund’s underperformance.

For the fiscal year ended April 30, 2015, the financials sector contributed most significantly to the Fund’s return, followed by the consumer discretionary and health care sectors, respectively. The energy sector detracted most significantly from the Fund’s return, followed by the utilities and telecommunication services sectors, respectively.

Positions that contributed most significantly to the Fund’s return included CarMax, Inc., a consumer discretionary company (portfolio average weight of 0.94%), and Equity Residential REIT, a financials company (portfolio average weight of 1.53%). Positions that detracted most significantly from the Fund’s return included Cliffs Natural Resources, Inc., a materials company (portfolio average weight of 0.42%), and Denbury Resources, Inc., an energy company (portfolio average weight of 0.53%).

19

PowerShares Fundamental Pure Mid Core Portfolio (PXMC) (continued)

Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2015
Financials	25.4
Consumer Discretionary	16.1
Industrials	13.7
Information Technology	13.4
Health Care	10.9
Materials	6.1
Consumer Staples	5.2
Utilities	4.7
Energy	3.6
Telecommunication Services	0.8
Money Market Fund Plus Other Assets Less Liabilities	0.1
Top Ten Fund Holdings (% of the Fund’s Net Assets) as of April 30, 2015
Security
Becton, Dickinson and Co.	1.7
Equity Residential REIT	1.6
Ameriprise Financial, Inc.	1.5
Charles Schwab Corp. (The)	1.4
Eversource Energy	1.4
Dollar General Corp.	1.3
Vornado Realty Trust REIT	1.3
Republic Services, Inc.	1.3
Mylan NV	1.3
VF Corp.	1.3
Total	14.1

20

PowerShares Fundamental Pure Mid Core Portfolio (PXMC) (continued)

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

Fund Performance History as of April 30, 2015

				3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			Fund Inception†
Index	1 Year															Average Annualized			Cumulative
Blended-RAFI® Fundamental Mid Core Index††		12.96	%		16.92	%		59.85	%		13.75	%		90.42	%		7.38	%		82.03	%
Russell Midcap® Index		13.30			17.87			63.75			15.09			101.94			8.47			98.19
Fund
NAV Return		12.52			16.46			57.95			13.21			85.98			6.77			73.53
Market Price Return		12.73			16.44			57.88			13.23			86.10			6.78			73.65

Fund Inception: December 1, 2006

Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2016. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.69% and the net annual operating expense ratio was indicated as 0.39%. The Financial Highlights section of the Shareholders Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market 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.

Blended-Index and Benchmark Index performance results are based upon a hypothetical investment in its constituent securities. Blended-Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Blended-Index and Benchmark Index do 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.

^†  Fund, Blended-Index and Benchmark Index returns are based on the inception date of the Fund.

^††  The Blended-RAFI^® Fundamental Mid Core Index performance is comprised of the performance of the Dynamic Mid Cap Intellidex^SM Index, the Fund’s previous underlying index, from Fund inception through the conversion date, June 16, 2011, followed by the performance of the Previous Index starting from the conversion date through April 30, 2015.

21

PXMG	Manager’s Analysis
	PowerShares Fundamental Pure Mid Growth Portfolio (PXMG)

Effective after the close of markets on May 22, 2015, the Fund’s name changed from PowerShares Fundamental Pure Mid Growth Portfolio to PowerShares Russell Midcap Pure Growth Portfolio and the underlying index changed from RAFI^® Fundamental Mid Growth Index (the “Previous Index”) to Russell Midcap Pure Growth Index (the “Index”). At that time the Fund also changed its investment objective and investment policies. The discussion that follows pertains to the Fund’s performance tracking the Previous Index for the fiscal year ended April 30, 2015.

As an index fund, the PowerShares Fundamental Pure Mid Growth Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of Index and, through May 22, 2015, the Previous Index. The Fund generally will invest at least 90% of its total assets in the component securities that comprise the Index and, through May 22, 2015, the Previous Index.

Research Affiliates, LLC (the “Index Provider”) compiles the Previous Index. Strictly in accordance with its existing guidelines and mandated procedures, the Index Provider identifies the common stocks for inclusion in the Previous Index from a universe of the 2,500 largest U.S. companies based on fundamental weight. The use of the word “Fundamental” in the Fund’s name reflects the fact that, in identifying common stocks, the Index Provider uses fundamental measures of company size, rather than market capitalization (company share price multiplied by number of shares outstanding). The Index Provider uses the following fundamental measures to include common stocks in the Previous Index: book value, cash flow, sales and dividends. The Index Provider calculates a composite fundamental weight for each common stock by equally weighting the above four fundamental measures. The Index Provider then ranks each common stock by its fundamental weight and, based on this ranking, divides the common stocks into three size groups: “large,” “mid” and “small.” The common stocks it ranks in the top 70% of the eligible universe by fundamental weight comprise the “large” size group, the next 20% comprise the “mid” size group, and the final 10% comprise the “small” size group. The Index Provider further divides the “mid” size group into “growth,” “core” or “value” subsets based on fundamental measures. The Previous Index is composed only of those common stocks that the Index Provider classifies as both “mid” and “growth” and weights them according to their composite fundamental weight. The Fund generally invests in all of the securities comprising the Previous Index in proportion to their weightings in the Previous Index.

For the fiscal year ended April 30, 2015, on a market price basis, the Fund returned 8.09%. On a net asset value (“NAV”) basis, the Fund returned 7.98%. During the same time period, the Previous Index returned 8.44%. During the fiscal year, the Fund fully replicated the components of the Previous Index; therefore, the

Fund’s performance, on a NAV basis, differed from the return of the Previous Index primarily due to fees and operating expenses incurred by the Fund.

During this same time period, the Russell Midcap^® Growth Index (the “Benchmark Index”) returned 16.46%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 550 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of a midcap growth benchmark. The Benchmark Index was selected for its recognition in the marketplace, and its performance comparison is a useful measure for investors as a broad representation of the U.S. midcap growth equity market.

The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an index that employs a fundamental weighting and stock selection methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization.

Relative to the Benchmark Index, the Fund was most overweight in the financials sector and most underweight in the consumer discretionary sector during the fiscal year ended April 30, 2015, which contributed to the Fund’s underperformance.

For the fiscal year ended April 30, 2015, the health care sector contributed most significantly to the Fund’s return, followed by the information technology and financials sectors, respectively. The energy sector was the only detracting sector.

Positions that contributed most significantly to the Fund’s return included Broadcom Corp., Class A, an information technology company (portfolio average weight of 1.89%), and Zoetis, Inc., a health care company (portfolio average weight of 1.56%). Positions that detracted most significantly from the Fund’s return included Wynn Resorts Ltd., a consumer discretionary company (portfolio average weight of 1.31%), and Noble Energy, Inc., an energy company (portfolio average weight of 1.5%).

22

PowerShares Fundamental Pure Mid Growth Portfolio (PXMG) (continued)

Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2015
Financials	23.6
Information Technology	18.8
Health Care	13.0
Consumer Discretionary	12.4
Industrials	11.1
Energy	10.5
Materials	6.0
Consumer Staples	4.6
Money Market Fund Plus Other Assets Less Liabilities	0.0
Top Ten Fund Holdings (% of the Fund’s Net Assets) as of April 30, 2015
Security
Western Digital Corp.	2.4
HCP, Inc. REIT	2.3
Ventas, Inc. REIT	2.2
Stanley Black & Decker, Inc.	2.1
Health Care REIT, Inc. REIT	2.0
Broadcom Corp., Class A	2.0
Stryker Corp.	2.0
Prologis, Inc. REIT	1.9
CF Industries Holdings, Inc.	1.8
Lear Corp.	1.8
Total	20.5

23

PowerShares Fundamental Pure Mid Growth Portfolio (PXMG) (continued)

Growth of a $10,000 Investment

Fund Performance History as of April 30, 2015

	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			10 Years Average Annualized			10 Years Cumulative			Fund Inception†
Index																						Average Annualized			Cumulative
Blended-RAFI® Fundamental Mid Growth Index††		8.44	%		14.07	%		48.41	%		12.36	%		79.12	%		9.89	%		156.78	%		8.92	%		138.28	%
Russell Midcap® Growth Index		16.46			17.14			60.73			15.59			106.37			10.55			172.73			9.73			156.82
Fund
NAV Return		7.98			13.60			46.60			11.84			74.94			9.24			142.00			8.28			124.27
Market Price Return		8.09			13.63			46.73			11.85			75.03			9.24			142.01			8.26			123.98

Fund Inception: March 3, 2005

Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2016. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.45% and the net annual operating expense ratio was indicated as 0.39%. The Financial Highlights section of the Shareholders Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market 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.

Blended-Index and Benchmark Index performance results are based upon a hypothetical investment in its constituent securities. Blended-Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Blended-Index and Benchmark Index do 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.

^†  Fund, Blended-Index and Benchmark Index returns are based on the inception date of the Fund.

^††  The Blended-RAFI^® Fundamental Mid Growth Index performance is comprised of the performance of the Dynamic Mid Cap Growth Intellidex^SM Index, the Fund’s previous underlying index, from Fund inception through the conversion date, June 16, 2011, followed by the performance of the Previous Index starting from the conversion date through April 30, 2015.

24

PXMV	Manager’s Analysis
	PowerShares Fundamental Pure Mid Value Portfolio (PXMV)

Effective after the close of markets on May 22, 2015, the Fund’s name changed from PowerShares Fundamental Pure Mid Value Portfolio to PowerShares Russell Midcap Pure Value Portfolio and the underlying index changed from RAFI^® Fundamental Mid Value Index (the “Previous Index”) to Russell Midcap Pure Value Index (the “Index”). At that time the Fund also changed its investment objective and investment policies. The discussion that follows pertains to the Fund’s performance tracking the Previous Index for the fiscal year ended April 30, 2015.

As an index fund, the PowerShares Fundamental Pure Mid Value Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Index and, through May 22, 2015, the Previous Index. The Fund generally will invest at least 90% of its total assets in the component securities that comprise the Index and, through May 22, 2015, the Previous Index.

Research Affiliates, LLC (the “Index Provider”) compiles the Previous Index. Strictly in accordance with its existing guidelines and mandated procedures, the Index Provider identifies the common stocks for inclusion in the Previous Index from a universe of the 2,500 largest U.S. companies based on fundamental weight. The use of the word “Fundamental” in the Fund’s name reflects the fact that, in identifying common stocks, the Index Provider uses fundamental measures of company size, rather than market capitalization (company share price multiplied by number of shares outstanding). The Index Provider uses the following fundamental measures to include common stocks in the Previous Index: book value, cash flow, sales and dividends. The Index Provider calculates a composite fundamental weight for each common stock by equally weighting the above four fundamental measures. The Index Provider then ranks each common stock by its fundamental weight and, based on this ranking, divides the common stocks into three size groups: “large,” “mid” and “small.” The common stocks it ranks in the top 70% of the eligible universe by fundamental weight comprise the “large” size group, the next 20% comprise the “mid” size group, and the final 10% comprise the “small” size group. The Index Provider further divides the “mid” size group into “growth,” “core” or “value” subsets based on fundamental measures. The Previous Index is composed only of those common stocks that the Index Provider classifies as both “mid” and “value” and weights them according to their composite fundamental weight. The Fund generally invests in all of the securities comprising the Previous Index in proportion to their weightings in the Previous Index.

For the fiscal year ended April 30, 2015, on a market price basis, the Fund returned 7.94%. On a net asset value (“NAV”) basis, the Fund returned 7.98%. During the same time period, the Previous Index returned 8.33%. During the fiscal year, the Fund fully replicated the components of the Previous Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of

the Previous Index primarily due to fees and operating expenses that the Fund incurred during the period.

During this same time period, the Russell Midcap^® Value Index (the “Benchmark Index”) returned 9.97%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 580 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of a Midcap value benchmark. The Benchmark Index was selected for its recognition in the marketplace, and its performance comparison is a useful measure for investors as a broad representation of the U.S. midcap value market.

The performance of the Fund differed from the Benchmark Index in part because the Fund employs a fundamental weighting and stock selection methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization.

Relative to the Benchmark Index, the Fund was most overweight in the consumer discretionary sector and most underweight in the financials sector during the fiscal year ended April 30, 2015, which contributed to the Fund’s underperformance.

For the fiscal year ended April 30, 2015, the consumer discretionary sector contributed most significantly to the Fund’s return, followed by the financials and health care sectors, respectively. The energy sector was the only detracting sector.

Positions that contributed most significantly to the Fund’s return included Tesoro Corp., an energy company (portfolio average weight of 1.18%), and Hillshire Brands Company, a consumer staples company (no longer held at fiscal year-end). Positions that detracted most significantly from the Fund’s return included Peabody Energy Corp., an energy company (portfolio average weight of 0.42%), and Avon Products, Inc., a consumer staples company (portfolio average weight of 0.56%).

25

PowerShares Fundamental Pure Mid Value Portfolio (PXMV) (continued)

Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2015
Financials	21.4
Consumer Discretionary	20.0
Industrials	15.4
Utilities	9.5
Information Technology	7.7
Materials	7.2
Consumer Staples	6.6
Health Care	5.4
Energy	5.1
Telecommunication Services	1.6
Money Market Funds Plus Other Assets Less Liabilities	0.1
Top Ten Fund Holdings (% of the Fund’s Net Assets) as of April 30, 2015
Security
Tesoro Corp.	1.4
American Airlines Group, Inc.	1.1
Boston Scientific Corp.	1.1
Whirlpool Corp.	1.1
Frontier Communications Corp.	1.1
TRW Automotive Holdings Corp.	1.0
Rite Aid Corp.	1.0
Ingersoll-Rand PLC	0.9
Principal Financial Group, Inc.	0.9
McGraw Hill Financial, Inc.	0.9
Total	10.5

26

PowerShares Fundamental Pure Mid Value Portfolio (PXMV) (continued)

Growth of a $10,000 Investment

Fund Performance History as of April 30, 2015

	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			10 Years Average Annualized			10 Years Cumulative			Fund Inception†
Index																						Average Annualized			Cumulative
Blended-RAFI® Fundamental Mid Value Index††		8.33	%		19.78	%		71.87	%		14.62	%		97.83	%		9.02	%		137.21	%		8.44	%		127.74	%
Russell Midcap® Value Index		9.97			18.42			66.04			14.57			97.37			9.77			154.12			9.19			144.32
Fund
NAV Return		7.98			19.34			69.96			14.10			93.35			8.33			122.60			7.76			113.60
Market Price Return		7.94			19.36			70.04			14.09			93.33			8.34			122.78			7.74			113.20

Fund Inception: March 3, 2005

Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2016. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.63%, including acquired fund fees and expenses of 0.01% and the net annual operating expense ratio was indicated as 0.40%. The Financial Highlights section of the Shareholders Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market 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.

Blended-Index and Benchmark Index performance results are based upon a hypothetical investment in its constituent securities. Blended-Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Blended-Index and Benchmark Index do 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.

^†  Fund, Blended-Index and Benchmark Index returns are based on the inception date of the Fund.

^††  The Blended-RAFI^® Fundamental Mid Value Index performance is comprised of the performance of the Dynamic Mid Cap Value Intellidex^SM Index, the Fund’s previous underlying index, from Fund inception through the conversion date, June 16, 2011, followed by the performance of the Previous Index starting from the conversion date through April 30, 2015.

27

PXSC	Manager’s Analysis
	PowerShares Fundamental Pure Small Core Portfolio (PXSC)

Effective after the close of markets on May 22, 2015, the Fund’s name changed from PowerShares Fundamental Pure Small Core Portfolio to PowerShares Russell 2000 Equal Weight Portfolio and the underlying index changed from RAFI^® Fundamental Small Core Index (the “Previous Index”) to Russell 2000 Equal Weight Index (the “Index”). At that time the Fund also changed its ticker symbol from PXSC to EQWS and changed its investment objective and investment policies. The discussion that follows pertains to the Fund’s performance tracking the Previous Index for the fiscal year ended April 30, 2015.

As an index fund, the PowerShares Fundamental Pure Small Core Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Index and, through May 22, 2015, the Previous Index. The Fund generally will invest at least 90% of its total assets in the component securities that comprise the Index and, through May 22, 2015, the Previous Index.

Research Affiliates, LLC (the “Index Provider”) compiles the Previous Index. Strictly in accordance with its existing guidelines and mandated procedures, the Index Provider identifies the common stocks for inclusion in the Previous Index from a universe of the 2,500 largest U.S. companies based on fundamental weight. The use of the word “Fundamental” in the Fund’s name reflects the fact that, in identifying common stocks, the Index Provider uses fundamental measures of company size, rather than market capitalization (company share price multiplied by number of shares outstanding). The Index Provider uses the following fundamental measures to include common stocks in the Previous Index: book value, cash flow, sales and dividends. The Index Provider calculates a composite fundamental weight for each common stock by equally weighting the above four fundamental measures. The Index Provider then ranks each common stock by its fundamental weight and, based on this ranking, divides the common stocks into three size groups: “large,” “mid” and “small.” The common stocks it ranks in the top 70% of the eligible universe by fundamental weight comprise the “large” size group, the next 20% comprise the “mid” size group, and the final 10% comprise the “small” size group. The Index Provider further divides the “small” size group into “growth,” “core” or “value” subsets based on fundamental measures. The Previous Index is composed only of those common stocks that the Index Provider classifies as both “small” and “core” and weights them according to their composite fundamental weight. The Fund generally invests in all of the securities comprising the Previous Index in proportion to their weightings in the Previous Index.

For the fiscal year ended April 30, 2015, on a market price basis, the Fund returned 10.59%. On a net asset value (“NAV”) basis, the Fund returned 10.53%. During the same time period, the Previous Index returned 10.99%. During the fiscal year, the Fund fully replicated the components of the Previous Index; therefore,

the Fund’s performance, on a NAV basis, differed from the return of the Previous Index primarily due to fees and operating cost incurred during the period.

During this same time period, the Russell 2000^® Index (the “Benchmark Index”) returned 9.71%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 1,990 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of a broad-based small cap benchmark. The Benchmark Index was selected for its recognition in the marketplace, and its performance comparison is a useful measure for investors as a broad representation of the U.S. small cap equity market.

The performance of the Fund differed from the Benchmark Index primarily because the Fund tracks an index that employs a fundamental weighting and stock selection methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization.

Relative to the Benchmark Index, the Fund was most overweight in the industrials sector and most underweight in the information technology sector during the fiscal year ended April 30, 2015, which contributed to the Fund’s outperformance.

For the fiscal year ended April 30, 2015, the financials sector contributed most significantly to the Fund’s return, followed by the consumer discretionary and health care sectors, respectively. The energy sector was the only detracting sector.

Positions that contributed most significantly to the Fund’s return included Southwest Airlines Co., an industrials company (portfolio average weight of 1.03%), and TriQuint Semiconductor, Inc., an information technology company (no longer held at fiscal year-end). Positions that detracted most significantly from the Fund’s return included Atwood Oceanics, Inc., an energy company (portfolio average weight of 0.44%), and Generac Holdings, Inc., an industrials company (portfolio average weight of 0.46%).

28

PowerShares Fundamental Pure Small Core Portfolio (PXSC) (continued)

Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2015
Financials	21.8
Industrials	20.6
Consumer Discretionary	17.6
Information Technology	11.2
Health Care	9.9
Materials	6.0
Consumer Staples	5.4
Energy	4.6
Utilities	1.9
Telecommunication Services	1.0
Money Market Fund Plus Other Assets Less Liabilities	0.0
Top Ten Fund Holdings (% of the Fund’s Net Assets) as of April 30, 2015
Security
Southwest Airlines Co.	1.2
Dresser-Rand Group, Inc.	0.9
Broadridge Financial Solutions, Inc.	0.9
Symetra Financial Corp.	0.7
VCA, Inc.	0.7
Home Properties, Inc. REIT	0.7
Global Payments, Inc.	0.7
STERIS Corp.	0.7
Live Nation Entertainment, Inc.	0.7
Highwoods Properties, Inc. REIT	0.7
Total	7.9

29

PowerShares Fundamental Pure Small Core Portfolio (PXSC) (continued)

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

Fund Performance History as of April 30, 2015

	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			Fund Inception†
Index																Average Annualized			Cumulative
Blended-RAFI® Fundamental Small Core Index††		10.99	%		16.24	%		57.07	%		13.06	%		84.71	%		6.00	%		63.22	%
Russell 2000® Index		9.71			15.87			55.58			12.73			82.03			6.89			75.21
Fund
NAV Return		10.53			15.71			54.94			12.48			80.01			5.28			54.18
Market Price Return		10.59			15.77			55.18			12.50			80.24			5.29			54.23

Fund Inception: December 1, 2006

Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2016. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.95%, including acquired fund fees and expenses of 0.01% and the net annual operating expense ratio was indicated as 0.40%. The Financial Highlights section of the Shareholders Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market 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.

Blended-Index and Benchmark Index performance results are based upon a hypothetical investment in its constituent securities. Blended-Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Blended-Index and Benchmark Index do 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.

^†  Fund, Blended-Index and Benchmark Index returns are based on the inception date of the Fund.

^††  The Blended-RAFI^® Fundamental Small Core Index performance is comprised of the performance of the Dynamic Small Cap Intellidex^SM Index, the Fund’s previous underlying index, from Fund inception through the conversion date, June 16, 2011, followed by the performance of the Previous Index starting from the conversion date through April 30, 2015.

30

PXSG	Manager’s Analysis
	PowerShares Fundamental Pure Small Growth Portfolio (PXSG)

Effective after the close of markets on May 22, 2015, the Fund’s name changed from PowerShares Fundamental Pure Small Growth Portfolio to PowerShares Russell 2000 Pure Growth Portfolio and the underlying index changed from RAFI^® Fundamental Small Growth Index (the “Previous Index”) to Russell 2000 Pure Growth Index (the “Index”). At that time the Fund also changed its investment objective and investment policies. The discussion that follows pertains to the Fund’s performance tracking the Previous Index for the fiscal year ended April 30, 2015.

As an index fund, the PowerShares Fundamental Pure Small Growth Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Index and, through May 22, 2015, the Previous Index. The Fund generally will invest at least 90% of its total assets in the component securities that comprise the Index and, through May 22, 2015, the Previous Index.

Research Affiliates, LLC (the “Index Provider”) compiles the Previous Index. Strictly in accordance with its existing guidelines and mandated procedures, the Index Provider identifies the common stocks for inclusion in the Previous Index from a universe of the 2,500 largest U.S. companies based on fundamental weight. The use of the word “Fundamental” in the Fund’s name reflects the fact that, in identifying common stocks, the Index Provider uses fundamental measures of company size, rather than market capitalization (company share price multiplied by number of shares outstanding). The Index Provider uses the following fundamental measures to include common stocks in the Previous Index: book value, cash flow, sales and dividends. The Index Provider calculates a composite fundamental weight for each common stock by equally weighting the above four fundamental measures. The Index Provider then ranks each common stock by its fundamental weight and, based on this ranking, divides the common stocks into three size groups: “large,” “mid” and “small.” The common stocks it ranks in the top 70% of the eligible universe by fundamental weight comprise the “large” size group, the next 20% comprise the “mid” size group, and the final 10% comprise the “small” size group. The Index Provider further divides the “small” size group into “growth,” “core” or “value” subsets based on fundamental measures. The Previous Index is composed only of those common stocks that the Index Provider classifies as both “small” and “growth” and weights them according to their composite fundamental weight. The Fund generally invests in all of the securities comprising the Previous Index in proportion to their weightings in the Previous Index.

For the fiscal year ended April 30, 2015, on a market price basis, the Fund returned 6.92%. On a net asset value (“NAV”) basis, the Fund returned 6.92%. During the same time period, the Previous Index returned 7.19%. During the fiscal year, the Fund fully replicated the components of the Previous Index; therefore, the

Fund’s performance, on a NAV basis, differed from the return of the Previous Index primarily due to fees and operating expenses that the Fund incurred during the period.

During this same time period, the Russell 2000^® Growth Index (the “Benchmark Index”) returned 14.65%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 1,200 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of a small cap growth benchmark. The Benchmark Index was selected for its recognition in the marketplace, and its performance comparison is a useful measure for investors as a broad representation of the U.S. small cap growth market.

The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an index that employs a fundamental weighting and stock selection methodology, whereas the Benchmark Index select and weight stocks based on market capitalization.

Relative to the Benchmark Index, the Fund was most overweight in the financials sector and most underweight in the health care sector during the fiscal year ended April 30, 2015, which contributed to the Fund’s underperformance.

For the fiscal year ended April 30, 2015, the information technology sector contributed most significantly to the Fund’s return, followed by the financials and health care sectors, respectively. The energy sector detracted most significantly from the Fund’s return, followed by the industrials and materials sectors, respectively.

Positions that contributed most significantly to the Fund’s return included Skyworks Solutions, Inc., an information technology company (portfolio average weight of 1.73%), and Ulta Salon, Cosmetics & Fragrance, Inc., a consumer discretionary company (portfolio average weight of 0.65%). Positions that detracted most significantly from the Fund’s return included Ocwen Financial Corp., a financials company (portfolio average weight of 0.31%), and MasTec, Inc., an industrials company (portfolio average weight of 0.43%).

31

PowerShares Fundamental Pure Small Growth Portfolio (PXSG) (continued)

Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2015
Financials	27.9
Information Technology	24.2
Consumer Discretionary	13.6
Industrials	12.5
Health Care	11.2
Energy	3.7
Consumer Staples	3.1
Materials	2.5
Utilities	1.1
Telecommunication Services	0.2
Money Market Funds Plus Other Assets Less Liabilities	0.0
Top Ten Fund Holdings (% of the Fund’s Net Assets) as of April 30, 2015
Security
Skyworks Solutions, Inc.	2.4
ResMed, Inc.	1.1
Kilroy Realty Corp. REIT	1.0
Cooper Cos., Inc. (The)	1.0
MSCI, Inc.	1.0
Two Harbors Investment Corp. REIT	1.0
ITC Holdings Corp.	0.9
SVB Financial Group	0.9
Starwood Property Trust, Inc. REIT	0.9
Waste Connections, Inc.	0.9
Total	11.1

32

PowerShares Fundamental Pure Small Growth Portfolio (PXSG) (continued)

Growth of a $10,000 Investment

Fund Performance History as of April 30, 2015

	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			10 Years Average Annualized			10 Years Cumulative			Fund Inception†
Index																						Average Annualized			Cumulative
Blended-RAFI® Fundamental Small Growth Index††		7.19	%		14.17	%		48.81	%		13.53	%		88.64	%		7.18	%		100.06	%		6.20	%		84.21	%
Russell 2000® Growth Index		14.65			17.22			61.08			14.94			100.60			10.41			169.26			9.08			141.83
Fund
NAV Return		6.92			13.78			47.29			13.00			84.22			6.55			88.52			5.57			73.42
Market Price Return		6.92			13.81			47.40			13.02			84.41			6.58			89.12			5.54			73.01

Fund Inception: March 3, 2005

Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2016. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.72%, including estimated acquired fund fees and expenses of 0.02% and the net annual operating expense ratio was indicated as 0.41%. The Financial Highlights section of the Shareholders Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market 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.

Blended-Index and Benchmark Index performance results are based upon a hypothetical investment in its constituent securities. Blended-Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Blended-Index and Benchmark Index do 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.

^†  Fund, Blended-Index and Benchmark Index returns are based on the inception date of the Fund.

^††  The Blended-RAFI^® Fundamental Small Growth Index performance is comprised of the performance of the Dynamic Small Cap Growth Intellidex^SM Index, the Fund’s previous underlying index, from Fund inception through the conversion date, June 16, 2011, followed by the performance of the Previous Index starting from the conversion date through April 30, 2015.

33

PXSV	Manager’s Analysis
	PowerShares Fundamental Pure Small Value Portfolio (PXSV)

Effective after the close of markets on May 22, 2015, the Fund’s name changed from PowerShares Fundamental Pure Small Value Portfolio to PowerShares Russell 2000 Pure Value Portfolio and the underlying index changed from RAFI^® Fundamental Small Value Index (the “Previous Index”) to Russell 2000 Pure Value Index (the “Index”). At that time the Fund also changed its investment objective and investment policies. The discussion that follows pertains to the Fund’s performance tracking the Previous Index for the fiscal year ended April 30, 2015.

As an index fund, the PowerShares Fundamental Pure Small Value Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Index and, through May 22, 2015, the Previous Index. The Fund generally will invest at least 90% of its total assets in the component securities that comprise the Index and, through May 22, 2015, the Previous Index.

Research Affiliates, LLC (the “Index Provider”) compiles the Previous Index. Strictly in accordance with its existing guidelines and mandated procedures, the Index Provider identifies the common stocks for inclusion in the Previous Index from a universe of the 2,500 largest U.S. companies based on fundamental weight. The use of the word “Fundamental” in the Fund’s name reflects the fact that, in identifying common stocks, the Index Provider uses fundamental measures of company size, rather than market capitalization (company share price multiplied by number of shares outstanding). The Index Provider uses the following fundamental measures to include common stocks in the Previous Index: book value, cash flow, sales and dividends. The Index Provider calculates a composite fundamental weight for each common stock by equally weighting the above four fundamental measures. The Index Provider then ranks each common stock by its fundamental weight and, based on this ranking, divides the common stocks into three size groups: “large,” “mid” and “small.” The common stocks it ranks in the top 70% of the eligible universe by fundamental weight comprise the “large” size group, the next 20% comprise the “mid” size group, and the final 10% comprise the “small” size group. The Index Provider further divides the “small” size group into “growth,” “core” or “value” subsets based on fundamental measures. The Previous Index is composed only of those common stocks that the Index Provider classifies as both “small” and “value” and weights them according to their composite fundamental weight. The Fund generally invests in all of the securities comprising the Previous Index in proportion to their weightings in the Previous Index.

For the fiscal year ended April 30, 2015, on a market price basis, the Fund returned 5.87%. On a net asset value (“NAV”) basis, the Fund returned 5.91%. During the same time period, the Previous Index returned 6.19%. During the fiscal year, the Fund fully replicated the components of the Previous Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of

the Previous Index primarily due to fees and operating expenses that the Fund incurred during the period.

During this same time period, the Russell 2000^® Value Index (the “Benchmark Index”) returned 4.89%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 1,370 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of a small cap value benchmark. The Benchmark Index was selected for its recognition in the marketplace, and its performance comparison is a useful measure for investors as a broad representation of the U.S. small cap value market.

The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an index that employs a fundamental weighting and stock selection methodology, whereas the Benchmark Index select and weight stocks based on market capitalization.

Relative to the Benchmark Index, the Fund was most overweight in the consumer discretionary sector and most underweight in the financials sector during the fiscal year ended April 30, 2015, which contributed to the Fund’s underperformance.

For the fiscal year ended April 30, 2015, the financials sector contributed most significantly to the Fund’s return, followed by the information technology and consumer discretionary sectors, respectively. The energy sector detracted most significantly from the Fund’s return, followed by the materials sector.

Positions that contributed most significantly to the Fund’s return included Travel Centers of America LLC, a consumer discretionary company (portfolio average weight of 0.3%), and Cooper Tire & Rubber Co., a consumer discretionary company (portfolio average weight of 0.43%). Positions that detracted most significantly from the Fund’s return included Key Energy Services, Inc., an energy company (portfolio average weight of 0.15%), and Stone Energy Corp., an energy company (portfolio average weight of 0.2%).

34

PowerShares Fundamental Pure Small Value Portfolio (PXSV) (continued)

Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2015
Financials	25.3
Industrials	19.6
Consumer Discretionary	18.5
Information Technology	12.8
Materials	6.7
Utilities	6.1
Health Care	4.3
Consumer Staples	3.0
Energy	2.4
Telecommunication Services	1.3
Money Market Funds Plus Other Assets Less Liabilities	0.0
Top Ten Fund Holdings (% of the Fund’s Net Assets) as of April 30, 2015
Security
Cooper Tire & Rubber Co.	0.6
Interactive Brokers Group, Inc., Class A	0.5
Dynegy, Inc.	0.5
Brookdale Senior Living, Inc.	0.5
Dun & Bradstreet Corp. (The)	0.5
City National Corp.	0.5
New Jersey Resources Corp.	0.5
PacWest Bancorp	0.5
TravelCenters of America LLC	0.5
SunEdison, Inc.	0.4
Total	5.0

35

PowerShares Fundamental Pure Small Value Portfolio (PXSV) (continued)

Growth of a $10,000 Investment

Fund Performance History as of April 30, 2015

	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			10 Years Average Annualized			10 Years Cumulative			Fund Inception†
Index																						Average Annualized			Cumulative
Blended-RAFI® Fundamental Small Value Index††		6.19	%		18.52	%		66.49	%		14.03	%		92.81	%		8.55	%		127.22	%		7.48	%		108.18	%
Russell 2000® Value Index		4.89			14.52			50.19			10.55			65.09			7.87			113.33			6.86			96.26
Fund
NAV Return		5.91			18.22			65.23			13.60			89.16			7.91			114.18			6.85			96.11
Market Price Return		5.87			18.27			65.43			13.63			89.41			7.95			114.82			6.84			95.87

Fund Inception: March 3, 2005

Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2016. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.54% and the net annual operating expense ratio was indicated as 0.39%. The Financial Highlights section of the Shareholders Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market 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.

Blended-Index and Benchmark Index performance results are based upon a hypothetical investment in its constituent securities. Blended-Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Blended-Index and Benchmark Index do 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.

^†  Fund, Blended-Index and Benchmark Index returns are based on the inception date of the Fund.

^††  The Blended-RAFI^® Fundamental Small Value Index performance is comprised of the performance of the Dynamic Small Cap Value Intellidex^SM Index, the Fund’s previous underlying index, from Fund inception through the conversion date, June 16, 2011, followed by the performance of the Previous Index starting from the conversion date through April 30, 2015.

36

PZI	Manager’s Analysis
	PowerShares Zacks Micro Cap Portfolio (PZI)

As an index fund, the PowerShares Zacks Micro Cap Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Zacks Micro Cap Index^TM (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks of micro capitalization companies that comprise the Index.

Zacks Investment Research (the “Index Provider”) compiles, maintains and calculates the Index. Strictly in accordance with its existing guidelines and mandated procedures, the Index Provider designs the selection methodology of the Index to identify companies with potentially superior risk-return profiles, as determined by the Index Provider. The objective of the Index is to actively represent a group of stocks that have the potential to outperform passive benchmark micro capitalization indices and other actively managed U.S. micro capitalization strategies. The Index constituent selection methodology utilizes a proprietary composite scoring system that measures companies on the basis of relative value and momentum, and is designed to be an effective, quantitative approach to selecting stocks with the greatest potential for capital appreciation from the micro capitalization subset of the domestic equity universe. The Index Provider selects U.S. stocks from a universe of 7,000 domestic companies. For the purpose of this constituent selection, the micro capitalization subset is defined relative to the entire investable universe of stocks, with the upper threshold equal to 0.15% of the capitalization of the largest capitalization domestic company at the time of selection and a minimum capitalization of approximately 0.015% of the largest capitalization domestic company at the time of selection. The Index Provider ranks and sorts each company from highest to lowest by each factor subset, then combines the rankings to establish a composite profile. A security may be an Index constituent only if it achieves a minimum threshold ranking on each factor. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2015, on a market price basis, the Fund returned 0.64%. On a net asset value (“NAV”) basis, the Fund returned 0.71%. During the same time period, the Index returned (0.59)%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, outperformed the return of the Index, despite incurring fees and operating expenses during the period, primarily due to the Index being a price return index and not reflecting dividends generated on the underlying securities. The Fund’s performance, on a NAV basis, also outperformed from the return of the Index due to securities lending revenue.

During this same time period, the Russell Microcap^® Index (the “Benchmark Index”) returned 7.66%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 1,630 securities. The Fund

selected this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of a micro-cap U.S. stock benchmark. The Benchmark Index was selected for its recognition in the marketplace, and its performance comparison is a useful measure for investors as a representation of the micro-cap segment of the U.S. market.

The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an index that employs a proprietary stock selection methodology that differs from the stock selection methodology of the Benchmark Index.

Relative to the Benchmark Index, the Fund was most overweight in the financials sector and most underweight in the health care sector during the fiscal year ended April 30, 2015, which contributed to the Fund’s underperformance.

For the fiscal year ended April 30, 2015, the financials sector contributed most significantly to the Fund’s return, followed by the health care and consumer discretionary sectors, respectively. The energy sector detracted most significantly from the Fund’s return, followed by the industrials and materials sectors, respectively.

Positions that contributed most significantly to the Fund’s return included Covenant Transportation Group, Inc., Class A, an industrials company (portfolio average weight of 0.28%), and Pantry, Inc., a consumer discretionary company (no longer held at fiscal year-end). Positions that detracted most significantly from the Fund’s return included Resolute Energy Corp., an energy company (no longer held at fiscal year-end), and Emerald Oil, Inc., an energy company (no longer held at fiscal year-end).

Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2015
Financials	44.7
Industrials	11.7
Information Technology	11.3
Consumer Discretionary	11.2
Energy	6.7
Health Care	5.9
Consumer Staples	3.0
Materials	2.9
Telecommunication Services	1.6
Utilities	1.0
Pharmaceuticals	0.0
Money Market Funds Plus Other Assets Less Liabilities	0.0

37

PowerShares Zacks Micro Cap Portfolio (PZI) (continued)

Top Ten Fund Holdings (% of the Fund’s Net Assets) as of April 30, 2015
Security
Hooker Furniture Corp.	0.3
Multi-Fineline Electronix, Inc.	0.3
China Cord Blood Corp.	0.3
Ruby Tuesday, Inc.	0.3
John B. Sanfilippo & Son, Inc.	0.3
Inphi Corp.	0.3
Ardmore Shipping Corp.	0.3
Callon Petroleum Co.	0.3
China XD Plastics Co. Ltd.	0.3
VASCO Data Security International, Inc.	0.3
Total	3.0

38

PowerShares Zacks Micro Cap Portfolio (PZI) (continued)

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

Fund Performance History as of April 30, 2015

	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			Fund Inception†
Index																Average Annualized			Cumulative
Zacks Micro Cap Index™-PI		(0.59	)%		12.98	%		44.22	%		7.10	%		40.91	%		1.21	%		12.38	%
Russell Microcap® Index		7.66			17.01			60.21			12.30			78.64			6.41			82.66
Fund
NAV Return		0.71			14.13			48.67			8.03			47.13			1.90			20.03
Market Price Return		0.64			14.15			48.75			8.02			47.08			1.87			19.72

Fund Inception: August 18, 2005

Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2016. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 1.00%, including acquired fund fees and expenses of 0.21% and the net annual operating expense ratio was indicated as 0.91%. The Financial Highlights section of the Shareholders Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund

at NAV and Market 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 and Benchmark 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 and Benchmark Index do 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.

^†  Fund, Index and Benchmark Index returns are based on the inception date of the Fund.

PI — Price only, and does not reflect dividends paid by the holdings in the Index.

39

Schedule of Investments^(a)

PowerShares Dynamic Large Cap Growth Portfolio (PWB)

April 30, 2015

Number of Shares			Value
		Common Stocks and Other Equity Interests—99.9%
		Consumer Discretionary—21.8%
	7,421	AutoZone, Inc.(b)	$	4,991,810
	65,682	Dollar General Corp.		4,775,738
	96,998	Home Depot, Inc. (The)		10,376,846
	51,927	L Brands, Inc.		4,640,197
	64,378	Lowe’s Cos., Inc.		4,433,069
	57,399	Marriott International, Inc., Class A		4,594,790
	114,606	NIKE, Inc., Class B		11,327,657
	22,923	O’Reilly Automotive, Inc.(b)		4,993,317
	45,085	Ross Stores, Inc.		4,458,005
	102,052	Starbucks Corp.		5,059,738
	106,935	Walt Disney Co. (The)		11,625,973
				71,277,140
		Consumer Staples—10.8%
	32,455	Costco Wholesale Corp.		4,642,688
	107,151	CVS Health Corp.		10,639,023
	67,045	Kroger Co. (The)		4,620,071
	45,537	Mead Johnson Nutrition Co.		4,367,909
	133,971	Walgreens Boots Alliance, Inc.		11,110,215
				35,379,906
		Energy—5.3%
	74,686	Energy Transfer Equity LP		4,978,569
	132,251	Schlumberger Ltd.		12,512,267
				17,490,836
		Financials—10.6%
	75,507	Berkshire Hathaway, Inc., Class B(b)		10,662,343
	162,584	Charles Schwab Corp. (The)		4,958,812
	49,724	CME Group, Inc., Class A		4,520,409
	20,264	Intercontinental Exchange, Inc.		4,549,876
	46,266	McGraw Hill Financial, Inc.		4,825,544
	49,210	Moody’s Corp.		5,291,059
				34,808,043
		Health Care—22.4%
	46,422	AmerisourceBergen Corp.		5,306,035
	27,173	Biogen, Inc.(b)		10,160,800
	182,700	Bristol-Myers Squibb Co.		11,643,471
	54,215	Cardinal Health, Inc.		4,572,493
	66,198	Cerner Corp.(b)		4,753,678
	56,258	Express Scripts Holding Co.(b)		4,860,691
	107,508	Gilead Sciences, Inc.(b)		10,805,629
	20,857	McKesson Corp.		4,659,454
	143,454	Medtronic PLC		10,680,150
	83,210	Mylan NV(b)		6,012,755
				73,455,156
		Industrials—5.6%
	99,588	American Airlines Group, Inc.		4,808,607
	26,952	FedEx Corp.		4,570,251
	110,317	Southwest Airlines Co.		4,474,457
	73,183	United Continental Holdings, Inc.(b)		4,371,952
				18,225,267
		Information Technology—20.7%
	86,643	Apple, Inc.		10,843,371
	82,368	eBay, Inc.(b)		4,798,760
	140,942	Facebook, Inc., Class A(b)		11,102,001

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	48,860	Intuit, Inc.	$	4,902,124
	123,494	MasterCard, Inc., Class A		11,140,394
	155,528	Micron Technology, Inc.(b)		4,375,002
	56,190	NXP Semiconductors NV (Netherlands)(b)		5,400,983
	81,128	Texas Instruments, Inc.		4,397,949
	164,100	Visa, Inc., Class A		10,838,805
				67,799,389
		Materials—2.7%
	30,553	Air Products & Chemicals, Inc.		4,382,217
	16,726	Sherwin-Williams Co. (The)		4,649,828
				9,032,045
		Total Common Stocks and Other Equity Interests (Cost $292,730,262)		327,467,782
		Money Market Fund—0.1%
	210,425	Invesco Premier Portfolio—Institutional Class(c) (Cost $210,425)		210,425
		Total Investments (Cost $292,940,687)—100.0%		327,678,207
		Other assets less liabilities—(0.0)%		(98,798	)
		Net Assets—100.0%	$	327,579,409

Notes to Schedule of Investments:

^(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.

^(b)  Non-income producing security.

^(c)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

40

Schedule of Investments^(a)

PowerShares Dynamic Large Cap Value Portfolio (PWV)

April 30, 2015

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—4.3%
	418,520	General Motors Co.	$	14,673,311
	245,054	Macy’s, Inc.		15,837,840
	203,241	Target Corp.		16,021,488
				46,532,639
		Consumer Staples—9.1%
	326,126	Archer-Daniels-Midland Co.		15,941,039
	157,756	PepsiCo, Inc.		15,005,751
	427,990	Procter & Gamble Co. (The)		34,029,485
	434,112	Wal-Mart Stores, Inc.		33,882,441
				98,858,716
		Energy—11.0%
	341,534	Chevron Corp.		37,930,766
	239,493	ConocoPhillips		16,266,365
	411,506	Exxon Mobil Corp.		35,953,279
	148,715	Marathon Petroleum Corp.		14,658,837
	253,121	Valero Energy Corp.		14,402,585
				119,211,832
		Financials—18.2%
	136,959	ACE Ltd.		14,653,244
	221,174	Allstate Corp. (The)		15,406,981
	282,213	American International Group, Inc.		15,885,770
	416,844	Blackstone Group LP (The)		17,073,930
	155,452	Chubb Corp. (The)		15,288,704
	256,068	Discover Financial Services		14,844,262
	594,565	JPMorgan Chase & Co.		37,612,182
	193,133	Prudential Financial, Inc.		15,759,653
	145,337	Travelers Cos., Inc. (The)		14,695,024
	664,993	Wells Fargo & Co.		36,641,114
				197,860,864
		Health Care—11.1%
	106,624	Anthem, Inc.		16,092,760
	128,382	Cigna Corp.		16,001,533
	222,531	Eli Lilly & Co.		15,993,303
	355,427	Johnson & Johnson		35,258,358
	622,394	Merck & Co., Inc.		37,069,787
				120,415,741
		Industrials—4.2%
	112,518	General Dynamics Corp.		15,450,972
	94,230	Northrop Grumman Corp.		14,515,189
	243,792	PACCAR, Inc.		15,931,807
				45,897,968
		Information Technology—22.4%
	1,234,661	Cisco Systems, Inc.		35,595,277
	639,960	Corning, Inc.		13,394,363
	448,191	Hewlett-Packard Co.		14,776,857
	1,095,789	Intel Corp.		35,667,932
	224,990	International Business Machines Corp.		38,538,537
	830,898	Microsoft Corp.		40,414,879
	831,467	Oracle Corp.		36,268,590
	255,480	Seagate Technology PLC		15,001,785
	145,959	Western Digital Corp.		14,266,033
				243,924,253

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Materials—3.1%
	276,811	International Paper Co.	$	14,870,287
	181,760	LyondellBasell Industries NV, Class A		18,815,795
				33,686,082
		Telecommunication Services—8.1%
	1,054,253	AT&T, Inc.		36,519,324
	412,441	CenturyLink, Inc.		14,831,379
	736,803	Verizon Communications, Inc.		37,164,343
				88,515,046
		Utilities—8.5%
	271,185	American Electric Power Co., Inc.		15,422,291
	198,792	Duke Energy Corp.		15,420,295
	243,032	Edison International		14,810,370
	290,621	PG&E Corp.		15,379,663
	457,915	PPL Corp.		15,582,848
	371,255	Public Service Enterprise Group, Inc.		15,421,933
				92,037,400
		Total Investments (Cost $1,014,034,602)—100.0%		1,086,940,541
		Other assets less liabilities—0.0%		402,357
		Net Assets—100.0%	$	1,087,342,898

Notes to Schedule of Investments:

^(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

41

Schedule of Investments^(a)

PowerShares Fundamental Pure Large Core Portfolio (PXLC)

April 30, 2015

Number of Shares			Value
		Common Stocks and Other Equity Interests—99.9%
		Consumer Discretionary—13.5%
	3,136	CBS Corp., Class B	$	194,840
	4,049	DIRECTV(b)		367,265
	53,538	Ford Motor Co.		845,900
	23,644	General Motors Co.		828,959
	10,488	Home Depot, Inc. (The)		1,122,006
	6,550	Johnson Controls, Inc.		329,989
	3,387	L Brands, Inc.		302,662
	8,204	McDonald’s Corp.		792,096
	2,120	Omnicom Group, Inc.		160,611
	2,329	Time Warner Cable, Inc.		362,206
	11,512	Twenty-First Century Fox, Inc., Class A		392,329
				5,698,863
		Consumer Staples—14.0%
	12,923	Archer-Daniels-Midland Co.		631,676
	5,423	Colgate-Palmolive Co.		364,860
	12,655	CVS Health Corp.		1,256,515
	5,965	General Mills, Inc.		330,103
	3,685	Lorillard, Inc.		257,434
	13,786	PepsiCo, Inc.		1,311,324
	13,416	Philip Morris International, Inc.		1,119,834
	8,028	Walgreens Boots Alliance, Inc.		665,762
				5,937,508
		Energy—5.4%
	4,024	Anadarko Petroleum Corp.		378,658
	5,050	Apache Corp.		345,420
	3,194	California Resources Corp.		29,704
	4,159	Marathon Petroleum Corp.		409,953
	7,985	Occidental Petroleum Corp.		639,599
	6,347	Spectra Energy Corp.		236,426
	4,876	Williams Cos., Inc. (The)		249,602
				2,289,362
		Financials—16.3%
	3,448	ACE Ltd.		368,902
	5,207	Aflac, Inc.		328,249
	6,604	American Express Co.		511,480
	27,925	Annaly Capital Management, Inc. REIT		281,205
	17,384	Berkshire Hathaway, Inc., Class B(b)		2,454,795
	7,429	Capital One Financial Corp.		600,635
	3,984	Marsh & McLennan Cos., Inc.		223,741
	6,191	PNC Financial Services Group, Inc. (The)		567,900
	6,750	Prudential Financial, Inc.		550,800
	3,746	State Street Corp.		288,892
	17,059	U.S. Bancorp		731,319
				6,907,918
		Health Care—17.0%
	5,829	AbbVie, Inc.		376,903
	4,107	Aetna, Inc.		438,915
	5,037	AmerisourceBergen Corp.		575,729
	4,095	Baxter International, Inc.		281,490
	12,328	Bristol-Myers Squibb Co.		785,663
	22,135	Johnson & Johnson		2,195,792
	3,184	McKesson Corp.		711,306
	8,153	Medtronic PLC		606,991

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Health Care (continued)
	10,814	UnitedHealth Group, Inc.	$	1,204,680
				7,177,469
		Industrials—15.9%
	4,671	3M Co.		730,498
	4,961	Boeing Co. (The)		711,110
	6,764	Caterpillar, Inc.		587,656
	9,252	CSX Corp.		333,905
	3,901	Deere & Co.		353,119
	6,643	Emerson Electric Co.		390,808
	2,725	FedEx Corp.		462,078
	4,951	Honeywell International, Inc.		499,655
	3,640	Illinois Tool Works, Inc.		340,631
	2,404	Lockheed Martin Corp.		448,586
	2,939	Norfolk Southern Corp.		296,398
	2,909	PACCAR, Inc.		190,103
	5,540	United Parcel Service, Inc., Class B		556,936
	7,180	United Technologies Corp.		816,725
				6,718,208
		Information Technology—9.9%
	60,531	Intel Corp.		1,970,284
	8,517	International Business Machines Corp.		1,458,877
	6,334	Micron Technology, Inc.(b)		178,175
	7,090	Texas Instruments, Inc.		384,349
	4,578	Yahoo!, Inc.(b)		194,863
				4,186,548
		Materials—4.1%
	1,677	Air Products & Chemicals, Inc.		240,532
	8,118	E.I. du Pont de Nemours & Co.		594,238
	3,827	Mosaic Co. (The)		168,388
	11,102	Newmont Mining Corp.		294,092
	917	PPG Industries, Inc.		203,170
	1,847	Praxair, Inc.		225,205
				1,725,625
		Utilities—3.8%
	12,109	AES Corp. (The)		160,444
	8,945	Duke Energy Corp.		693,864
	4,346	NextEra Energy, Inc.		438,642
	8,654	PPL Corp.		294,495
				1,587,445
		Total Common Stocks and Other Equity Interests (Cost $34,254,306)		42,228,946
		Money Market Fund—0.2%
	64,946	Invesco Premier Portfolio—Institutional Class(c) (Cost $64,946)		64,946
		Total Investments (Cost $34,319,252)—100.1%		42,293,892
		Other assets less liabilities—(0.1)%		(45,280	)
		Net Assets—100.0%	$	42,248,612

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

42

PowerShares Fundamental Pure Large Core Portfolio (PXLC) (continued)

April 30, 2015

Investment Abbreviations:

REIT—Real Estate Investment Trust

Notes to Schedule of Investments:

^(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.

^(b)  Non-income producing security.

^(c)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

43

Schedule of Investments^(a)

PowerShares Fundamental Pure Large Growth Portfolio (PXLG)

April 30, 2015

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—11.6%
	3,794	Amazon.com, Inc.(b)	$	1,600,233
	98,967	Comcast Corp., Class A		5,716,334
	17,602	NIKE, Inc., Class B		1,739,782
	17,311	TJX Cos., Inc. (The)		1,117,252
	11,865	Viacom, Inc., Class B		824,024
	43,132	Walt Disney Co. (The)		4,689,311
	13,397	Yum! Brands, Inc.		1,151,606
				16,838,542
		Consumer Staples—7.8%
	160,031	Coca-Cola Co. (The)		6,490,857
	23,226	Costco Wholesale Corp.		3,322,479
	17,142	Kraft Foods Group, Inc.		1,452,785
				11,266,121
		Energy—9.8%
	22,517	Baker Hughes, Inc.		1,541,514
	12,518	EOG Resources, Inc.		1,238,656
	30,646	Halliburton Co.		1,500,121
	29,266	Kinder Morgan, Inc.		1,256,975
	19,885	National Oilwell Varco, Inc.		1,081,943
	46,187	Phillips 66		3,663,091
	41,925	Schlumberger Ltd.		3,966,524
				14,248,824
		Financials—11.7%
	4,007	BlackRock, Inc.		1,458,308
	17,398	CME Group, Inc., Class A		1,581,652
	17,083	Discover Financial Services		990,302
	7,372	Simon Property Group, Inc. REIT		1,337,944
	211,530	Wells Fargo & Co.		11,655,303
	3,686	WP GLIMCHER, Inc. REIT		55,290
				17,078,799
		Health Care—13.6%
	15,690	Amgen, Inc.		2,477,608
	12,932	Cigna Corp.		1,611,845
	34,266	Express Scripts Holding Co.(b)		2,960,582
	14,388	Gilead Sciences, Inc.(b)		1,446,138
	12,204	Humana, Inc.		2,020,982
	138,488	Merck & Co., Inc.		8,248,345
	8,113	Thermo Fisher Scientific, Inc.		1,019,642
				19,785,142
		Industrials—3.5%
	6,124	Cummins, Inc.		846,704
	14,350	Danaher Corp.		1,174,978
	4,971	NOW, Inc.(b)		118,807
	27,239	Union Pacific Corp.		2,893,599
				5,034,088
		Information Technology—37.4%
	18,524	Accenture PLC, Class A		1,716,249
	116,302	Apple, Inc.		14,555,195
	15,207	Automatic Data Processing, Inc.		1,285,600
	5,069	CDK Global, Inc.		242,906
	185,283	Cisco Systems, Inc.		5,341,709
	72,396	Corning, Inc.		1,515,248
	27,456	eBay, Inc.(b)		1,599,587

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	80,265	EMC Corp.	$	2,159,931
	3,979	Google, Inc., Class A(b)		2,183,556
	3,989	Google, Inc., Class C(b)		2,143,449
	271,803	Microsoft Corp.		13,220,498
	92,521	Oracle Corp.		4,035,766
	39,410	QUALCOMM, Inc.		2,679,880
	25,953	Visa, Inc., Class A		1,714,196
				54,393,770
		Materials—2.9%
	25,882	LyondellBasell Industries NV, Class A		2,679,305
	13,824	Monsanto Co.		1,575,383
				4,254,688
		Telecommunication Services—1.7%
	69,876	CenturyLink, Inc.		2,512,741
		Total Common Stocks and Other Equity Interests (Cost $114,036,137)		145,412,715
		Money Market Fund—0.1%
	178,897	Invesco Premier Portfolio—Institutional Class(c) (Cost $178,897)		178,897
		Total Investments (Cost $114,215,034)—100.1%		145,591,612
		Other assets less liabilities—(0.1)%		(89,506	)
		Net Assets—100.0%	$	145,502,106

Investment Abbreviations:

REIT—Real Estate Investment Trust

Notes to Schedule of Investments:

^(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.

^(b)  Non-income producing security.

^(c)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

44

Schedule of Investments^(a)

PowerShares Fundamental Pure Large Value Portfolio (PXLV)

April 30, 2015

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—5.5%
	6,167	Best Buy Co., Inc.	$	213,686
	3,447	Carnival Corp.		151,565
	1,936	Kohl’s Corp.		138,714
	6,293	Lowe’s Cos., Inc.		433,336
	2,666	Macy’s, Inc.		172,304
	10,099	Staples, Inc.		164,816
	6,783	Target Corp.		534,704
	5,140	Time Warner, Inc.		433,867
	643	Time, Inc.		14,680
				2,257,672
		Consumer Staples—12.3%
	13,008	Altria Group, Inc.		651,050
	2,300	Bunge Ltd.		198,651
	3,728	ConAgra Foods, Inc.		134,767
	2,107	Kellogg Co.		133,436
	2,011	Kimberly-Clark Corp.		220,587
	7,212	Kroger Co. (The)		496,979
	14,300	Mondelez International, Inc., Class A		548,691
	15,369	Procter & Gamble Co. (The)		1,221,989
	2,287	Reynolds American, Inc.		167,637
	5,481	Sysco Corp.		202,962
	14,029	Wal-Mart Stores, Inc.		1,094,964
				5,071,713
		Energy—18.5%
	5,217	Chesapeake Energy Corp.		82,272
	19,196	Chevron Corp.		2,131,908
	16,639	ConocoPhillips		1,130,121
	3,056	Devon Energy Corp.		208,450
	34,405	Exxon Mobil Corp.		3,005,965
	2,868	Hess Corp.		220,549
	9,005	Marathon Oil Corp.		280,055
	2,605	Murphy Oil Corp.		124,024
	373	Seventy Seven Energy, Inc.(b)		1,891
	7,798	Valero Energy Corp.		443,706
				7,628,941
		Financials—24.6%
	4,030	Allstate Corp. (The)		280,730
	10,978	American International Group, Inc.		617,952
	111,879	Bank of America Corp.		1,782,232
	8,728	Bank of New York Mellon Corp. (The)		369,544
	5,547	BB&T Corp.		212,395
	1,977	Chubb Corp. (The)		194,438
	26,497	Citigroup, Inc.		1,412,820
	5,948	Fifth Third Bancorp		118,960
	6,486	Genworth Financial, Inc., Class A(b)		57,012
	3,276	Goldman Sachs Group, Inc. (The)		643,472
	5,596	Hartford Financial Services Group, Inc. (The)		228,149
	32,312	JPMorgan Chase & Co.		2,044,057
	7,439	KeyCorp		107,494
	2,094	Lincoln National Corp.		118,290
	2,960	Loews Corp.		123,254
	7,646	MetLife, Inc.		392,163
	10,778	Morgan Stanley		402,127
	4,504	Progressive Corp. (The)		120,077

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	12,111	Regions Financial Corp.	$	119,051
	4,743	SunTrust Banks, Inc.		196,834
	4,004	Travelers Cos., Inc. (The)		404,844
	7,760	Weyerhaeuser Co. REIT		244,518
				10,190,413
		Health Care—9.7%
	14,106	Abbott Laboratories		654,801
	3,693	Anthem, Inc.		557,384
	4,304	Cardinal Health, Inc.		362,999
	6,756	Eli Lilly & Co.		485,554
	251	Halyard Health, Inc.(b)		12,168
	5,522	HCA Holdings, Inc.(b)		408,683
	45,533	Pfizer, Inc.		1,544,935
				4,026,524
		Industrials—7.5%
	2,045	General Dynamics Corp.		280,819
	75,281	General Electric Co.		2,038,610
	1,695	Northrop Grumman Corp.		261,098
	1,933	Raytheon Co.		201,032
	2,990	Tyco International PLC		117,746
	63	Veritiv Corp.(b)		2,504
	3,708	Waste Management, Inc.		183,657
				3,085,466
		Information Technology—2.4%
	5,464	Applied Materials, Inc.		108,133
	762	Blackhawk Network Holdings, Inc., Class B(b)		27,973
	22,143	Hewlett-Packard Co.		730,055
	12,653	Xerox Corp.		145,509
				1,011,670
		Materials—2.7%
	13,777	Alcoa, Inc.		184,887
	7,971	Dow Chemical Co. (The)		406,521
	8,927	Freeport-McMoRan, Inc.		207,731
	3,324	International Paper Co.		178,565
	2,782	Nucor Corp.		135,929
				1,113,633
		Telecommunication Services—9.1%
	65,333	AT&T, Inc.		2,263,135
	29,420	Verizon Communications, Inc.		1,483,945
				3,747,080
		Utilities—7.7%
	2,883	Ameren Corp.		118,030
	4,640	American Electric Power Co., Inc.		263,877
	3,976	CenterPoint Energy, Inc.		83,377
	3,284	Consolidated Edison, Inc.		202,130
	3,332	Dominion Resources, Inc.		238,838
	1,609	DTE Energy Co.		128,125
	3,011	Edison International		183,490
	2,605	Entergy Corp.		201,054
	12,054	Exelon Corp.		410,077
	6,840	FirstEnergy Corp.		245,625
	4,745	PG&E Corp.		251,105

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

45

PowerShares Fundamental Pure Large Value Portfolio (PXLV) (continued)

April 30, 2015

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Utilities (continued)
	5,365	Public Service Enterprise Group, Inc.	$	222,862
	1,360	Sempra Energy		144,391
	7,917	Southern Co. (The)		350,723
	4,710	Xcel Energy, Inc.		159,716
				3,203,420
		Total Common Stocks and Other Equity Interests (Cost $38,396,281)		41,336,532
		Money Market Fund—0.0%
	16,712	Invesco Premier Portfolio—Institutional Class(c) (Cost $16,712)		16,712
		Total Investments (Cost $38,412,993)—100.0%		41,353,244
		Other assets less liabilities—(0.0)%		(5,736	)
		Net Assets—100.0%	$	41,347,508

Investment Abbreviations:

REIT—Real Estate Investment Trust

Notes to Schedule of Investments:

^(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.

^(b)  Non-income producing security.

^(c)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

46

Schedule of Investments^(a)

PowerShares Fundamental Pure Mid Core Portfolio (PXMC)

April 30, 2015

Number of Shares			Value
		Common Stocks and Other Equity Interests—99.9%
		Consumer Discretionary—16.1%
	1,165	Advance Auto Parts, Inc.	$	166,595
	470	AutoZone, Inc.(b)		316,150
	5,401	Bed Bath & Beyond, Inc.(b)		380,554
	3,098	BorgWarner, Inc.		183,402
	5,578	CarMax, Inc.(b)		379,918
	3,607	Cinemark Holdings, Inc.		153,766
	6,719	Dana Holding Corp.		144,929
	4,771	DISH Network Corp., Class A(b)		322,806
	6,338	Dollar General Corp.		460,836
	1,699	Expedia, Inc., Class A		160,097
	2,649	Family Dollar Stores, Inc.		206,993
	7,205	Hanesbrands, Inc.		223,931
	11,712	Interpublic Group of Cos., Inc. (The)		244,078
	3,475	Jarden Corp.(b)		177,851
	2,665	Lennar Corp., Class A		122,057
	2,307	Murphy USA, Inc.(b)		150,716
	4,218	Nordstrom, Inc.		318,712
	437	Remy International, Inc.		9,723
	2,954	SeaWorld Entertainment, Inc.		62,625
	3,141	Starwood Hotels & Resorts Worldwide, Inc.		269,969
	1,896	Tiffany & Co.		165,862
	5,968	VF Corp.		432,262
	1,948	Vista Outdoor, Inc.(b)		85,245
	1,969	Williams-Sonoma, Inc.		144,781
	2,628	Wyndham Worldwide Corp.		224,431
				5,508,289
		Consumer Staples—5.2%
	2,392	Brown-Forman Corp., Class B		215,830
	1,600	Casey’s General Stores, Inc.		131,488
	1,854	Constellation Brands, Inc., Class A(b)		214,953
	1,969	Energizer Holdings, Inc.		269,005
	2,766	Hormel Foods Corp.		150,332
	2,648	Ingredion, Inc.		210,251
	3,453	J.M. Smucker Co. (The)		400,272
	2,548	McCormick & Co., Inc.		191,864
				1,783,995
		Energy—3.6%
	1,318	Cimarex Energy Co.		163,959
	6,552	CONSOL Energy, Inc.		212,809
	14,096	Denbury Resources, Inc.		124,186
	1,753	Energen Corp.		124,761
	6,252	LinnCo LLC		79,713
	1,607	Oil States International, Inc.(b)		76,477
	5,346	QEP Resources, Inc.		120,285
	16,345	SandRidge Energy, Inc.(b)		30,892
	6,499	Superior Energy Services, Inc.		165,725
	1,208	Targa Resources Corp.		126,804
				1,225,611
		Financials—25.4%
	1,734	Alexandria Real Estate Equities, Inc. REIT		160,187
	391	Alleghany Corp.(b)		185,146
	4,150	Ameriprise Financial, Inc.		519,912
	3,164	Arthur J. Gallagher & Co.		151,334
	5,150	BioMed Realty Trust, Inc. REIT		106,863
	2,734	Boston Properties, Inc. REIT		361,736

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	2,139	Camden Property Trust REIT	$	160,596
	5,206	CBRE Group, Inc., Class A(b)		199,598
	15,518	Charles Schwab Corp. (The)		473,299
	11,252	E*TRADE Financial Corp.(b)		323,945
	7,342	Equity Residential REIT		542,280
	1,150	Federal Realty Investment Trust REIT		153,721
	4,622	First American Financial Corp.		160,799
	19,889	First Niagara Financial Group, Inc.		180,891
	7,373	FNF Group		265,354
	2,458	FNFV Group(b)		36,747
	7,374	Franklin Resources, Inc.		380,204
	13,980	General Growth Properties, Inc. REIT		383,052
	6,103	Hatteras Financial Corp. REIT		110,220
	10,224	Invesco Ltd.(c)		423,478
	853	Jones Lang LaSalle, Inc.		141,649
	1,879	LPL Financial Holdings, Inc.		76,043
	3,330	Macerich Co. (The) REIT		272,261
	259	Markel Corp.(b)		191,826
	18,061	MFA Financial, Inc. REIT		140,334
	3,639	NASDAQ OMX Group, Inc. (The)		176,965
	14,197	Navient Corp.		277,409
	2,185	Public Storage REIT		410,583
	2,743	Raymond James Financial, Inc.		155,062
	3,521	Rayonier, Inc. REIT		90,102
	2,050	Reinsurance Group of America, Inc.		187,821
	1,838	SL Green Realty Corp. REIT		224,898
	14,197	SLM Corp.(b)		144,667
	6,457	UDR, Inc. REIT		211,596
	2,218	Urban Edge Properties REIT		50,193
	4,435	Vornado Realty Trust REIT		458,978
	5,189	Voya Financial, Inc.		219,702
				8,709,451
		Health Care—10.9%
	2,955	Alere, Inc.(b)		140,304
	4,058	Becton, Dickinson and Co.		571,651
	1,105	C.R. Bard, Inc.		184,071
	3,582	Centene Corp.(b)		222,048
	7,043	Community Health Systems, Inc.(b)		378,068
	4,570	DaVita HealthCare Partners, Inc.(b)		370,627
	2,509	DENTSPLY International, Inc.		127,959
	1,982	Henry Schein, Inc.(b)		271,732
	6,048	Mylan NV(b)		437,029
	2,904	Omnicare, Inc.		255,494
	5,340	Tenet Healthcare Corp.(b)		255,572
	1,876	Universal Health Services, Inc., Class B		219,398
	2,885	Zimmer Holdings, Inc.		316,888
				3,750,841
		Industrials—13.7%
	3,731	Alaska Air Group, Inc.		239,008
	4,969	C.H. Robinson Worldwide, Inc.		319,954
	1,400	Carlisle Cos., Inc.		135,100
	3,189	Civeo Corp.		14,893
	6,093	Delta Air Lines, Inc.		271,991
	4,102	Dover Corp.		310,603
	2,392	EMCOR Group, Inc.		106,755
	1,759	Equifax, Inc.		170,500

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

47

PowerShares Fundamental Pure Mid Core Portfolio (PXMC) (continued)

April 30, 2015

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrials (continued)
	4,343	Expeditors International of Washington, Inc.	$	199,040
	5,579	Fluor Corp.		335,521
	2,978	Fortune Brands Home & Security, Inc.		132,819
	1,046	Hubbell, Inc., Class B		113,836
	1,221	Huntington Ingalls Industries, Inc.		160,671
	5,045	Jacobs Engineering Group, Inc.(b)		216,229
	3,344	Joy Global, Inc.		142,588
	973	Orbital ATK, Inc.		71,185
	3,560	Parker-Hannifin Corp.		424,921
	5,965	Quanta Services, Inc.(b)		172,448
	11,179	Republic Services, Inc.		454,203
	2,173	Rockwell Automation, Inc.		257,718
	1,218	Snap-on, Inc.		182,152
	1,047	W.W. Grainger, Inc.		260,106
				4,692,241
		Information Technology—13.4%
	439	Alliance Data Systems Corp.(b)		130,519
	3,031	Amdocs Ltd.		166,917
	5,807	Analog Devices, Inc.		359,105
	2,196	Autodesk, Inc.(b)		124,799
	12,554	Brocade Communications Systems, Inc.		141,860
	7,771	CA, Inc.		246,885
	3,937	Electronic Arts, Inc.(b)		228,700
	4,673	Fiserv, Inc.(b)		362,625
	3,038	Harris Corp.		243,769
	10,641	Juniper Networks, Inc.		281,241
	3,206	KLA-Tencor Corp.		188,513
	3,983	Lam Research Corp.		301,035
	4,470	Microchip Technology, Inc.		213,018
	8,908	NVIDIA Corp.		197,713
	11,773	ON Semiconductor Corp.(b)		135,625
	7,562	Paychex, Inc.		365,925
	4,385	SanDisk Corp.		293,532
	2,742	Synopsys, Inc.(b)		128,545
	15,503	Western Union Co. (The)		314,401
	4,278	Xilinx, Inc.		185,494
				4,610,221
		Materials—6.1%
	1,474	Airgas, Inc.		149,287
	2,706	Albemarle Corp.		161,548
	3,365	Celanese Corp., Series A		223,302
	12,782	Cliffs Natural Resources, Inc.		75,925
	2,997	Eastman Chemical Co.		228,431
	9,864	Graphic Packaging Holding Co.		139,082
	1,387	International Flavors & Fragrances, Inc.		159,158
	912	Martin Marietta Materials, Inc.		130,097
	1,595	Packaging Corp. of America		110,358
	1,166	Rayonier Advanced Materials, Inc.		19,484
	5,434	Sealed Air Corp.		247,790
	1,205	Sherwin-Williams Co. (The)		334,990
	1,556	Valspar Corp. (The)		126,192
				2,105,644

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Telecommunication Services—0.8%
	3,538	Level 3 Communications, Inc.(b)	$	197,916
	13,075	Sprint Corp.(b)		67,075
				264,991
		Utilities—4.7%
	3,935	AGL Resources, Inc.		197,812
	4,380	American Water Works Co., Inc.		238,798
	9,564	Eversource Energy		466,341
	15,309	NRG Energy, Inc.		386,399
	6,602	Wisconsin Energy Corp.		324,290
				1,613,640
		Total Common Stocks and Other Equity Interests (Cost $29,327,266)		34,264,924
		Money Market Fund—0.3%
	98,120	Invesco Premier Portfolio—Institutional Class(d) (Cost $98,120)		98,120
		Total Investments (Cost $29,425,386)—100.2%		34,363,044
		Other assets less liabilities—(0.2)%		(70,791	)
		Net Assets—100.0%	$	34,292,253

Investment Abbreviations:

REIT—Real Estate Investment Trust

Notes to Schedule of Investments:

^(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.

^(b)  Non-income producing security.

^(c)  Affiliated company. The Fund’s Adviser is a wholly-owned subsidiary of Invesco Ltd. and therefore, Invesco Ltd. is considered to be affiliated. See Note 4.

^(d)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

48

Schedule of Investments^(a)

PowerShares Fundamental Pure Mid Growth Portfolio (PXMG)

April 30, 2015

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—12.4%
	19,326	Coach, Inc.	$	738,446
	9,361	Dick’s Sporting Goods, Inc.		507,928
	11,308	Discovery Communications, Inc., Class A(b)		365,927
	11,308	Discovery Communications, Inc., Class C(b)		341,841
	15,225	Dollar Tree, Inc.(b)		1,163,342
	15,262	Las Vegas Sands Corp.		807,054
	14,020	Lear Corp.		1,556,641
	1,228	Liberty Broadband Corp., Class A(b)		66,607
	2,456	Liberty Broadband Corp., Class C(b)		133,263
	4,913	Liberty Media Corp., Series A(b)		188,561
	9,822	Liberty Media Corp., Series C(b)		372,745
	15,640	LKQ Corp.(b)		423,375
	5,224	O’Reilly Automotive, Inc.(b)		1,137,944
	4,995	PVH Corp.		516,233
	4,058	Ralph Lauren Corp., Class A		541,378
	13,679	Ross Stores, Inc.		1,352,579
	6,438	Wynn Resorts Ltd.		715,069
				10,928,933
		Consumer Staples—4.6%
	8,359	Church & Dwight Co., Inc.		678,500
	9,925	Estee Lauder Cos., Inc. (The), Class A		806,803
	8,002	Hershey Co. (The)		735,544
	8,925	Mead Johnson Nutrition Co.		856,086
	19,439	Whole Foods Market, Inc.		928,407
				4,005,340
		Energy—10.5%
	21,629	Cameron International Corp.(b)		1,185,702
	5,091	Concho Resources, Inc.(b)		644,826
	7,277	EQT Corp.		654,493
	14,019	FMC Technologies, Inc.(b)		618,238
	7,260	Helmerich & Payne, Inc.		566,062
	35,493	HollyFrontier Corp.		1,376,418
	21,560	Noble Energy, Inc.		1,093,523
	5,633	Oceaneering International, Inc.		310,435
	14,982	PBF Energy, Inc., Class A		425,189
	4,322	Pioneer Natural Resources Co.		746,755
	4,855	Range Resources Corp.		308,584
	21,487	Southwestern Energy Co.(b)		602,281
	11,247	Whiting Petroleum Corp.(b)		426,374
	5,350	World Fuel Services Corp.		296,925
				9,255,805
		Financials—23.6%
	2,256	Affiliated Managers Group, Inc.(b)		510,149
	10,923	American Campus Communities, Inc. REIT		438,449
	60,392	American Capital Agency Corp. REIT		1,246,189
	10,171	American Tower Corp. REIT		961,465
	8,808	AvalonBay Communities, Inc. REIT		1,447,507
	10,066	Crown Castle International Corp. REIT		840,813
	45,077	CYS Investments, Inc. REIT		402,087
	13,785	Digital Realty Trust, Inc. REIT		874,107
	2,647	Essex Property Trust, Inc. REIT		587,502
	8,433	First Republic Bank		491,559
	49,728	HCP, Inc. REIT		2,003,541
	24,973	Health Care REIT, Inc. REIT		1,798,555

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	2,874	Intercontinental Exchange, Inc.	$	645,299
	22,569	Invesco Mortgage Capital, Inc. REIT(c)		347,563
	24,592	Leucadia National Corp.		584,552
	7,624	Moody’s Corp.		819,732
	40,572	Prologis, Inc. REIT		1,630,994
	8,761	Realogy Holdings Corp.(b)		415,359
	9,991	Realty Income Corp. REIT		469,277
	23,774	Senior Housing Properties Trust REIT		486,654
	16,509	T. Rowe Price Group, Inc.		1,340,201
	12,123	TD Ameritrade Holding Corp.		439,459
	28,333	Ventas, Inc. REIT		1,952,144
				20,733,157
		Health Care—13.0%
	4,326	Actavis PLC(b)		1,223,652
	17,099	Agilent Technologies, Inc.		707,386
	14,023	Catamaran Corp.(b)		832,265
	8,989	Cerner Corp.(b)		645,500
	6,413	Endo International PLC(b)		539,109
	24,584	Hologic, Inc.(b)		829,464
	1,470	Intuitive Surgical, Inc.(b)		729,091
	6,685	MEDNAX, Inc.(b)		473,164
	17,000	St. Jude Medical, Inc.		1,190,850
	18,767	Stryker Corp.		1,731,068
	6,080	Varian Medical Systems, Inc.(b)		540,208
	3,753	Waters Corp.(b)		469,838
	34,510	Zoetis, Inc.		1,532,934
				11,444,529
		Industrials—11.1%
	10,391	AMETEK, Inc.		544,696
	6,279	B/E Aerospace, Inc.		375,421
	14,293	Fastenal Co.		609,168
	8,718	Flowserve Corp.		510,264
	5,723	J.B. Hunt Transport Services, Inc.		499,046
	5,688	Kansas City Southern		582,963
	3,140	KLX, Inc.(b)		131,597
	21,440	Nielsen NV		963,514
	6,033	Pall Corp.		587,132
	4,731	Roper Technologies, Inc.		795,612
	18,348	Stanley Black & Decker, Inc.		1,810,948
	3,873	Towers Watson & Co., Class A		491,503
	2,253	TransDigm Group, Inc.		477,929
	15,368	United Continental Holdings, Inc.(b)		918,084
	12,929	Xylem, Inc.		478,632
				9,776,509
		Information Technology—18.8%
	52,769	Activision Blizzard, Inc.		1,203,925
	18,802	Adobe Systems, Inc.(b)		1,430,080
	7,046	Akamai Technologies, Inc.(b)		519,854
	18,609	Altera Corp.		775,623
	13,548	Amphenol Corp., Class A		750,153
	40,477	Broadcom Corp., Class A		1,789,286
	10,251	Citrix Systems, Inc.(b)		688,457
	22,673	Cognizant Technology Solutions Corp., Class A(b)		1,327,277
	2,501	Equinix, Inc. REIT		640,081

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

49

PowerShares Fundamental Pure Mid Growth Portfolio (PXMG) (continued)

April 30, 2015

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	20,867	Fidelity National Information Services, Inc.	$	1,303,979
	9,723	First Solar, Inc.(b)		580,171
	9,698	Intuit, Inc.		973,000
	8,550	Keysight Technologies, Inc.(b)		286,083
	14,672	Linear Technology Corp.		676,819
	25,682	NetApp, Inc.		930,972
	11,149	Teradata Corp.(b)		490,445
	21,540	Western Digital Corp.		2,105,320
				16,471,525
		Materials—6.0%
	5,624	CF Industries Holdings, Inc.		1,616,731
	12,813	Ecolab, Inc.		1,434,800
	7,287	FMC Corp.		432,192
	12,811	Rock-Tenn Co., Class A		806,837
	6,710	Sigma-Aldrich Corp.		932,153
				5,222,713
		Total Common Stocks and Other Equity Interests (Cost $70,626,137)		87,838,511
		Money Market Fund—0.1%
	108,990	Invesco Premier Portfolio—Institutional Class(d) (Cost $108,990)		108,990
		Total Investments (Cost $70,735,127)—100.1%		87,947,501
		Other assets less liabilities—(0.1)%		(77,063	)
		Net Assets—100.0%	$	87,870,438

Investment Abbreviations:

REIT—Real Estate Investment Trust

Notes to Schedule of Investments:

^(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.

^(b)  Non-income producing security.

^(c)  Affiliated company. The Fund’s Adviser and Invesco Mortgage Capital, Inc. REIT are wholly-owned subsidiaries of Invesco Ltd. and therefore, Invesco Ltd. and Invesco Mortgage Capital, Inc. REIT are considered to be affiliated. See Note 4.

^(d)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

50

Schedule of Investments^(a)

PowerShares Fundamental Pure Mid Value Portfolio (PXMV)

April 30, 2015

Number of Shares			Value
		Common Stocks and Other Equity Interests—99.9%
		Consumer Discretionary—20.0%
	3,913	Abercrombie & Fitch Co., Class A	$	87,964
	10,457	American Eagle Outfitters, Inc.		166,371
	5,120	Apollo Education Group, Inc.(b)		85,939
	3,247	AutoNation, Inc.(b)		199,853
	4,586	Big Lots, Inc.		208,984
	13,060	Cablevision Systems Corp., Class A		260,939
	5,041	Caesars Entertainment Corp.(b)(c)		47,839
	1,871	Charter Communications, Inc., Class A(b)		349,989
	7,605	CST Brands, Inc.		317,205
	5,814	D.R. Horton, Inc.		147,676
	5,577	Darden Restaurants, Inc.		355,645
	1,102	Dillard’s, Inc., Class A		145,012
	4,509	Foot Locker, Inc.		268,060
	5,578	GameStop Corp., Class A(c)		214,976
	8,670	Gannett Co., Inc.		297,554
	6,356	Gap, Inc. (The)		251,952
	4,145	Genuine Parts Co.		372,428
	15,540	Goodyear Tire & Rubber Co. (The)		440,792
	162	Graham Holdings Co., Class B		165,715
	3,233	Guess?, Inc.		59,196
	6,433	H&R Block, Inc.		194,534
	3,845	Harley-Davidson, Inc.		216,128
	3,160	Hasbro, Inc.		223,696
	56,902	J.C. Penney Co., Inc.(b)(c)		472,287
	1,394	Lands’ End, Inc.(b)		40,956
	5,305	Leggett & Platt, Inc.		225,303
	14,660	Liberty Interactive Corp., Class A(b)		421,622
	2,084	Liberty Ventures, Class A(b)		86,861
	3,209	Marriott International, Inc., Class A		256,880
	9,482	Mattel, Inc.		267,013
	8,623	MGM Resorts International(b)		182,377
	1,293	Mohawk Industries, Inc.(b)		224,336
	6,662	Newell Rubbermaid, Inc.		254,022
	19,987	News Corp., Class A(b)		315,395
	83	NVR, Inc.(b)		110,099
	36,375	Office Depot, Inc.(b)		335,378
	4,903	Rent-A-Center, Inc.		145,129
	4,073	Royal Caribbean Cruises Ltd.		277,208
	4,635	Sears Holdings Corp.(b)		185,122
	5,462	Service Corp. International		151,188
	2,314	Tenneco, Inc.(b)		135,253
	5,153	TRW Automotive Holdings Corp.(b)		541,374
	2,261	Visteon Corp.(b)		229,265
	3,204	Whirlpool Corp.		562,622
				10,498,137
		Consumer Staples—6.6%
	26,116	Avon Products, Inc.		213,368
	5,422	Campbell Soup Co.		242,418
	3,063	Clorox Co. (The)		324,984
	6,310	Coca-Cola Enterprises, Inc.		280,227
	16,904	Dean Foods Co.		274,690
	5,189	Dr Pepper Snapple Group, Inc.		386,996
	4,560	Molson Coors Brewing Co., Class B		335,206
	68,629	Rite Aid Corp.(b)		529,129
	47,076	SUPERVALU, Inc.(b)		413,798
	11,310	Tyson Foods, Inc., Class A		446,745
				3,447,561

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Energy—5.1%
	46,751	Alpha Natural Resources, Inc.(b)(c)	$	37,868
	37,977	Arch Coal, Inc.(b)(c)		36,997
	6,129	Diamond Offshore Drilling, Inc.(c)		205,138
	2,935	Exterran Holdings, Inc.		108,801
	16,139	McDermott International, Inc.(b)		84,730
	6,922	Newfield Exploration Co.(b)		271,619
	6,049	ONEOK, Inc.		290,957
	4,458	Patterson-UTI Energy, Inc.		99,636
	19,087	Peabody Energy Corp.(c)		90,282
	4,276	Rowan Cos. PLC, Class A		90,608
	1,240	SEACOR Holdings, Inc.(b)		90,098
	8,754	Tesoro Corp.		751,356
	2,189	Tidewater, Inc.(c)		60,613
	2,017	Unit Corp.(b)		70,272
	2,955	Western Refining, Inc.		130,168
	17,301	WPX Energy, Inc.(b)		237,889
				2,657,032
		Financials—21.4%
	8,126	American Capital Ltd.(b)		122,621
	3,253	American Financial Group, Inc.		205,590
	100	American National Insurance Co.		10,006
	4,306	Apartment Investment & Management Co., Class A REIT		162,465
	6,796	Associated Banc-Corp.		127,833
	4,236	Assurant, Inc.		260,344
	6,515	Brandywine Realty Trust REIT		94,989
	5,962	CBL & Associates Properties, Inc. REIT		107,376
	5,945	Cincinnati Financial Corp.		301,055
	5,537	CIT Group, Inc.		249,331
	9,904	CNO Financial Group, Inc.		168,368
	5,723	Columbia Property Trust, Inc. REIT		150,114
	5,820	Comerica, Inc.		275,926
	2,701	Commerce Bancshares, Inc.		115,360
	10,587	Communications Sales & Leasing, Inc. REIT(b)		318,457
	1,513	Cullen/Frost Bankers, Inc.		110,358
	6,003	DDR Corp. REIT		102,351
	9,345	Duke Realty Corp. REIT		185,124
	4,885	Equity Commonwealth REIT(b)		123,151
	4,699	Federated Investors, Inc., Class B		161,646
	8,033	First Horizon National Corp.		114,470
	1,928	Hanover Insurance Group, Inc. (The)		132,203
	3,403	HCC Insurance Holdings, Inc.		193,835
	6,789	Hospitality Properties Trust REIT		204,213
	14,572	Host Hotels & Resorts, Inc. REIT		293,480
	27,292	Hudson City Bancorp, Inc.		253,816
	27,501	Huntington Bancshares, Inc.		298,661
	5,324	Iron Mountain, Inc. REIT		183,625
	1,039	Kemper Corp.		39,139
	10,125	Kimco Realty Corp. REIT		244,012
	3,516	Legg Mason, Inc.		185,117
	4,443	Liberty Property Trust REIT		154,794
	3,807	M&T Bank Corp.		455,584
	5,563	Mack-Cali Realty Corp. REIT		99,856
	4,634	McGraw Hill Financial, Inc.		483,326
	21,480	New York Community Bancorp, Inc.		369,241
	5,920	Northern Trust Corp.		433,048

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

51

PowerShares Fundamental Pure Mid Value Portfolio (PXMV) (continued)

April 30, 2015

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	11,144	Old Republic International Corp.	$	170,392
	15,902	People’s United Financial, Inc.		240,279
	6,758	PHH Corp.(b)		169,761
	8,785	Piedmont Office Realty Trust, Inc., Class A REIT		153,562
	4,529	Plum Creek Timber Co., Inc. REIT		191,124
	9,570	Principal Financial Group, Inc.		489,218
	2,178	Regency Centers Corp. REIT		136,735
	7,700	Retail Properties of America, Inc., Class A REIT		116,347
	1,718	StanCorp Financial Group, Inc.		123,833
	4,413	Synovus Financial Corp.		122,063
	5,895	TCF Financial Corp.		92,316
	4,127	Torchmark Corp.		231,566
	11,831	Unum Group		404,147
	10,291	Valley National Bancorp		97,044
	4,429	W.R. Berkley Corp.		216,977
	3,280	Weingarten Realty Investors REIT		107,453
	12,722	XL Group PLC (Ireland)		471,732
	6,447	Zions Bancorporation		182,676
				11,208,110
		Health Care—5.4%
	32,490	Boston Scientific Corp.(b)		578,972
	7,944	Health Net, Inc.(b)		418,251
	4,330	Hospira, Inc.(b)		377,966
	4,370	Kindred Healthcare, Inc.		100,291
	2,623	Laboratory Corp. of America Holdings(b)		313,606
	2,473	LifePoint Hospitals, Inc.(b)		185,178
	3,997	Owens & Minor, Inc.		134,779
	5,504	Quest Diagnostics, Inc.		393,096
	1,008	Teleflex, Inc.		123,944
	2,328	WellCare Health Plans, Inc.(b)		180,257
				2,806,340
		Industrials—15.4%
	7,239	ADT Corp. (The)(c)		272,186
	5,744	AECOM(b)		181,281
	4,552	AGCO Corp.		234,474
	12,082	American Airlines Group, Inc.		583,379
	2,611	Armstrong World Industries, Inc.(b)		142,926
	7,522	Avis Budget Group, Inc.(b)		407,241
	2,146	Cintas Corp.		171,573
	2,774	Con-way, Inc.		114,011
	7,703	Exelis, Inc.		188,878
	4,524	General Cable Corp.		73,786
	4,031	Harsco Corp.		64,818
	17,158	Hertz Global Holdings, Inc.(b)		357,573
	7,538	Ingersoll-Rand PLC		496,302
	4,416	ITT Corp.		175,094
	14,671	JetBlue Airways Corp.(b)		301,196
	6,654	KBR, Inc.		116,245
	2,191	Kennametal, Inc.		77,583
	3,950	L-3 Communications Holdings, Inc.		453,895
	4,157	Manpowergroup, Inc.		354,717
	9,141	Masco Corp.		242,145
	4,579	MRC Global, Inc.(b)		66,853
	4,679	Navistar International Corp.(b)		140,183
	3,062	Oshkosh Corp.		164,858

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrials (continued)
	4,415	Owens Corning	$	170,684
	11,020	Pitney Bowes, Inc.		246,517
	16,701	R.R. Donnelley & Sons Co.		310,973
	2,586	Robert Half International, Inc.		143,394
	2,668	Rockwell Collins, Inc.		259,676
	2,756	Ryder System, Inc.		262,812
	4,088	Spirit Aerosystems Holdings, Inc., Class A(b)		208,038
	1,338	SPX Corp.		103,026
	3,449	Terex Corp.		94,710
	8,042	Textron, Inc.		353,687
	2,581	Timken Co. (The)		101,408
	3,933	Trinity Industries, Inc.		106,545
	1,971	United Rentals, Inc.(b)		190,359
	428	Vectrus, Inc.(b)		10,940
	1,712	WESCO International, Inc.(b)		123,504
				8,067,470
		Information Technology—7.7%
	30,653	Advanced Micro Devices, Inc.(b)(c)		69,276
	1,053	Anixter International, Inc.(b)		74,342
	4,566	AOL, Inc.(b)		182,183
	5,849	Arrow Electronics, Inc.(b)		349,244
	4,130	Booz Allen Hamilton Holding Corp., Class A		113,575
	1,304	CACI International, Inc., Class A(b)		115,065
	6,343	Computer Sciences Corp.		408,806
	3,825	CoreLogic, Inc.(b)		149,596
	1,725	Insight Enterprises, Inc.(b)		49,370
	13,186	Jabil Circuit, Inc.		296,949
	5,034	Leidos Holdings, Inc.		209,616
	2,692	Lexmark International, Inc., Class A		119,498
	7,240	Maxim Integrated Products, Inc.		237,689
	4,527	Motorola Solutions, Inc.		270,488
	3,982	NCR Corp.(b)		109,266
	7,895	Sanmina Corp.(b)		160,505
	2,590	Science Applications International Corp.		129,759
	18,255	Symantec Corp.		455,006
	1,713	SYNNEX Corp.		131,045
	1,993	Tech Data Corp.(b)		112,345
	3,201	Total System Services, Inc.		126,632
	3,337	Unisys Corp.(b)		72,646
	7,180	Vishay Intertechnology, Inc.		91,042
				4,033,943
		Materials—7.2%
	4,899	Allegheny Technologies, Inc.		166,517
	2,167	Ashland, Inc.		273,822
	3,920	Avery Dennison Corp.		217,913
	3,503	Ball Corp.		257,155
	4,065	Bemis Co., Inc.		182,925
	1,909	Cabot Corp.		81,591
	7,451	Commercial Metals Co.		123,687
	4,752	Crown Holdings, Inc.(b)		257,843
	8,636	Huntsman Corp.		199,060
	6,901	MeadWestvaco Corp.		336,769
	6,950	Owens-Illinois, Inc.(b)		166,174
	2,680	Reliance Steel & Aluminum Co.		173,450
	3,442	RPM International, Inc.		163,633

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

52

PowerShares Fundamental Pure Mid Value Portfolio (PXMV) (continued)

April 30, 2015

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Materials (continued)
	3,779	Sonoco Products Co.	$	168,883
	6,234	Southern Copper Corp. (Mexico)		203,104
	10,496	Steel Dynamics, Inc.		232,276
	1,291	Timkensteel Corp.		37,684
	12,232	United States Steel Corp.(c)		293,813
	2,820	Vulcan Materials Co.		241,166
				3,777,465
		Telecommunication Services—1.6%
	81,566	Frontier Communications Corp.		559,543
	6,643	Telephone & Data Systems, Inc.		177,434
	8,823	Windstream Holdings, Inc.(c)		103,053
				840,030
		Utilities—9.5%
	4,300	Alliant Energy Corp.		260,021
	3,567	Atmos Energy Corp.		192,618
	14,736	Calpine Corp.(b)		321,392
	10,493	CMS Energy Corp.		356,028
	7,284	Great Plains Energy, Inc.		190,695
	3,798	Hawaiian Electric Industries, Inc.		118,877
	3,474	Integrys Energy Group, Inc.		253,949
	5,007	MDU Resources Group, Inc.		111,606
	1,930	National Fuel Gas Co.		124,389
	10,998	NiSource, Inc.		477,533
	5,939	OGE Energy Corp.		194,087
	16,540	Pepco Holdings, Inc.		429,709
	5,334	Pinnacle West Capital Corp.		326,441
	3,708	Portland General Electric Co.		130,373
	5,527	Questar Corp.		129,553
	5,762	SCANA Corp.		305,271
	1,238	Southwest Gas Corp.		68,090
	12,787	TECO Energy, Inc.		242,314
	6,976	UGI Corp.		242,835
	2,796	Vectren Corp.		120,703
	5,428	Westar Energy, Inc.		204,364
	2,914	WGL Holdings, Inc.		160,299
				4,961,147
		Total Common Stocks and Other Equity Interests (Cost $42,629,964)		52,297,235
		Money Market Fund—0.2%
	100,763	Invesco Premier Portfolio—Institutional Class(d) (Cost $100,763)		100,763
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $42,730,727)—100.1%		52,397,998

Number of Shares			Value
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—3.2%
	1,679,081	Invesco Liquid Assets Portfolio—Institutional Class(d)(e) (Cost $1,679,081)	$	1,679,081
		Total Investments (Cost $44,409,808)—103.3%		54,077,079
		Other assets less liabilities—(3.3)%		(1,739,433	)
		Net Assets—100.0%	$	52,337,646

Investment Abbreviations:

REIT—Real Estate Investment Trust

Notes to Schedule of Investments:

^(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.

^(b)  Non-income producing security.

^(c)  All or a portion of this security was out on loan at April 30, 2015.

^(d)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated.

^(e)  The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2G. The following table presents the Fund’s gross and net amount of assets available for offset by the Fund as of April 30, 2015.

Counterparty	Gross Amount of Securities on Loan at Value		Cash Collateral Received for Securities Loaned*			Net Amount
Brown Brothers Harriman & Co.	$	1,289,457	$	(1,289,457	)	$	—

* Amount does not include excess collateral received, if any.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

53

Schedule of Investments^(a)

PowerShares Fundamental Pure Small Core Portfolio (PXSC)

April 30, 2015

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—17.6%
	3,138	Aaron’s, Inc.	$	106,692
	282	America’s Car-Mart, Inc.(b)		14,478
	4,130	Ascena Retail Group, Inc.(b)		61,909
	641	BJ’s Restaurants, Inc.(b)		29,999
	1,536	Bloomin’ Brands, Inc.		34,806
	717	Bravo Brio Restaurant Group, Inc.(b)		10,561
	370	Bright Horizons Family Solutions, Inc.(b)		18,604
	1,536	Buckle, Inc. (The)		68,813
	1,076	Cabela’s, Inc.(b)		56,748
	242	Capella Education Co.		13,075
	326	Carriage Services, Inc.		7,707
	1,082	Carter’s, Inc.		108,049
	919	Cheesecake Factory, Inc. (The)		46,069
	4,105	Chico’s FAS, Inc.		69,210
	974	Choice Hotels International, Inc.		58,313
	193	Collectors Universe, Inc.		4,445
	394	Conn’s, Inc.(b)		11,020
	141	Container Store Group, Inc. (The)(b)		2,575
	1,780	Core-Mark Holding Co., Inc.		93,824
	617	Cracker Barrel Old Country Store, Inc.		81,740
	249	Culp, Inc.		6,437
	1,772	DeVry Education Group, Inc.		53,585
	481	DineEquity, Inc.		46,383
	731	Domino’s Pizza, Inc.		78,838
	401	Drew Industries, Inc.		22,725
	943	Entravision Communications Corp., Class A		6,167
	349	Extended Stay America, Inc.		7,071
	254	Fiesta Restaurant Group, Inc.(b)		12,840
	1,516	Finish Line, Inc. (The), Class A		37,188
	885	Genesco, Inc.(b)		59,817
	4,849	Gentex Corp.		84,130
	658	Houghton Mifflin Harcourt Co.(b)		15,042
	697	HSN, Inc.		43,507
	565	Interval Leisure Group, Inc.		14,006
	382	Jamba, Inc.(b)		6,020
	593	Kirkland’s, Inc.(b)		14,078
	1,037	La-Z-Boy, Inc.		27,180
	2,307	LeapFrog Enterprises, Inc., Class A(b)		5,214
	1,399	Life Time Fitness, Inc.(b)		100,029
	4,453	Live Nation Entertainment, Inc.(b)		111,592
	927	Madison Square Garden Co. (The), Class A(b)		74,438
	489	MDC Partners, Inc., Class A		10,240
	174	Motorcar Parts of America, Inc.(b)		5,086
	348	Movado Group, Inc.		10,189
	1,976	National CineMedia, Inc.		30,114
	1,644	Norwegian Cruise Line Holdings Ltd.(b)		79,750
	869	Outerwall, Inc.		57,728
	589	Overstock.com, Inc.(b)		12,646
	276	Oxford Industries, Inc.		21,928
	520	Papa John’s International, Inc.		31,912
	786	Pool Corp.		51,004
	4,578	PulteGroup, Inc.		88,355
	438	Remy International, Inc.		9,746
	3,090	Sally Beauty Holdings, Inc.(b)		96,439
	1,215	Select Comfort Corp.(b)		37,446
	540	Shoe Carnival, Inc.		14,099

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Discretionary (continued)
	1,378	Sinclair Broadcast Group, Inc., Class A	$	42,222
	668	Skullcandy, Inc.(b)		7,221
	1,148	Sotheby’s		49,031
	619	Standard Motor Products, Inc.		23,398
	2,317	Standard Pacific Corp.(b)		18,768
	1,565	Starz, Class A(b)		61,551
	93	Strattec Security Corp.		6,982
	831	Taylor Morrison Home Corp., Class A(b)		15,390
	404	Tilly’s, Inc., Class A(b)		5,389
	1,102	Tupperware Brands Corp.		73,680
	412	Universal Electronics, Inc.(b)		22,223
	2,361	Urban Outfitters, Inc.(b)		94,534
	630	Vail Resorts, Inc.		62,502
	1,927	Wolverine World Wide, Inc.		59,217
	708	Zumiez, Inc.(b)		22,451
				2,846,165
		Consumer Staples—5.4%
	1,222	Andersons, Inc. (The)		52,167
	1,350	B&G Foods, Inc.		41,040
	364	Calavo Growers, Inc.		18,437
	735	Diamond Foods, Inc.(b)		20,609
	4,404	Flowers Foods, Inc.		98,385
	769	Fresh Market, Inc. (The)(b)		27,023
	2,562	HRG Group, Inc.(b)		32,102
	251	J & J Snack Foods Corp.		26,187
	424	Lancaster Colony Corp.		38,016
	1,016	Landec Corp.(b)		14,437
	348	Nature’s Sunshine Products, Inc.		4,527
	1,375	Pinnacle Foods, Inc.		55,756
	561	Sanderson Farms, Inc.		42,142
	9	Seaboard Corp.(b)		32,400
	1,773	Snyders-Lance, Inc.		52,357
	430	Tootsie Roll Industries, Inc., Class A		13,321
	1,083	TreeHouse Foods, Inc.(b)		88,005
	1,399	United Natural Foods, Inc.(b)		94,377
	130	USANA Health Sciences, Inc.(b)		14,786
	2,406	WhiteWave Foods Co. (The)(b)		105,792
				871,866
		Energy—4.6%
	1,775	Atwood Oceanics, Inc.		59,249
	899	Bristow Group, Inc.		55,855
	176	Clayton Williams Energy, Inc.(b)		9,798
	214	Dawson Geophysical Co.(b)		1,218
	2,376	Delek US Holdings, Inc.		87,722
	1,795	Dresser-Rand Group, Inc.(b)		148,393
	486	Dril-Quip, Inc.(b)		38,744
	571	Era Group, Inc.(b)		12,665
	738	Goodrich Petroleum Corp.(b)		2,856
	1,576	Green Plains, Inc.		49,077
	812	Gulfmark Offshore, Inc., Class A		12,188
	552	Hallador Energy Co.		6,342
	583	Matrix Service Co.(b)		12,808
	2,176	Midstates Petroleum Co., Inc.(b)		2,502
	255	Natural Gas Services Group, Inc.(b)		6,464
	882	Nuverra Environmental Solutions, Inc.(b)		3,581

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

54

PowerShares Fundamental Pure Small Core Portfolio (PXSC) (continued)

April 30, 2015

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Energy (continued)
	232	Panhandle Oil and Gas, Inc., Class A	$	5,290
	711	PDC Energy, Inc.(b)		40,342
	229	REX American Resources Corp.(b)		14,477
	1,019	Rosetta Resources, Inc.(b)		23,264
	905	SemGroup Corp., Class A		76,192
	915	SM Energy Co.		53,043
	9,926	Vantage Drilling Co.(b)		3,956
	534	Westmoreland Coal Co.(b)		15,176
				741,202
		Financials—21.8%
	1,248	Acadia Realty Trust REIT		38,563
	248	Access National Corp.		4,687
	335	Agree Realty Corp. REIT		10,311
	57	Alexander’s, Inc. REIT		24,580
	3,692	American Capital Mortgage Investment Corp. REIT		64,758
	3,204	American Equity Investment Life Holding Co.		86,348
	2,097	Apollo Residential Mortgage, Inc. REIT		33,258
	427	Arlington Asset Investment Corp., Class A		9,257
	64	Artisan Partners Asset Management, Inc., Class A		2,867
	365	Banc of California, Inc.		4,526
	634	Bancorp, Inc. (The)(b)		6,175
	165	Bank of Kentucky Financial Corp. (The)		7,902
	159	Bank of Marin Bancorp		8,017
	2,298	BankUnited, Inc.		75,512
	897	Berkshire Hills Bancorp, Inc.		25,125
	4,535	BGC Partners, Inc., Class A		45,509
	275	Bridge Bancorp, Inc.		6,949
	163	Bridge Capital Holdings(b)		4,409
	2,615	Brown & Brown, Inc.		83,549
	341	Bryn Mawr Bank Corp.		10,261
	69	BSB Bancorp, Inc.(b)		1,459
	732	Centerstate Banks, Inc.		8,901
	324	CNB Financial Corp.		5,566
	1,249	Community Bank System, Inc.		43,653
	241	ConnectOne Bancorp, Inc.		4,632
	2,517	Corrections Corp. of America REIT		92,600
	3,465	Cowen Group, Inc., Class A(b)		19,369
	2,136	CubeSmart REIT		49,278
	76	Diamond Hill Investment Group, Inc.		13,847
	2,717	East West Bancorp, Inc.		110,283
	681	EastGroup Properties, Inc. REIT		38,953
	2,422	Eaton Vance Corp.		99,496
	986	Education Realty Trust, Inc. REIT		33,149
	168	eHealth, Inc.(b)		2,060
	587	Empire State Realty Trust, Inc., Class A REIT		10,566
	1,738	Equity One, Inc. REIT		42,807
	346	Erie Indemnity Co., Class A		28,631
	3,140	EZCORP, Inc., Class A(b)		28,888
	377	Fidelity Southern Corp.		6,334
	2,678	First Financial Bancorp		46,222
	1,094	First Financial Bankshares, Inc.		31,682
	1,985	First Industrial Realty Trust, Inc. REIT		39,164
	322	First of Long Island Corp. (The)		8,056
	239	Fox Chase Bancorp, Inc.		3,975

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	1,797	Geo Group, Inc. (The) REIT	$	70,083
	341	German American Bancorp, Inc.		9,756
	607	Gladstone Commercial Corp. REIT		10,811
	951	Gladstone Investment Corp.		7,199
	3,088	Healthcare Realty Trust, Inc. REIT		79,053
	1,271	Hercules Technology Growth Capital, Inc.		17,667
	834	Heritage Financial Corp.		14,095
	6,947	Hersha Hospitality Trust REIT		44,669
	2,572	Highwoods Properties, Inc. REIT		110,699
	159	Home Bancorp, Inc.		3,442
	1,576	Home Properties, Inc. REIT		115,931
	462	HomeStreet, Inc.(b)		9,554
	835	IBERIABANK Corp.		52,029
	687	Independent Bank Corp.		28,662
	438	Lakeland Financial Corp.		17,104
	2,246	LaSalle Hotel Properties REIT		82,406
	631	LTC Properties, Inc. REIT		27,423
	5,137	MBIA, Inc.(b)		44,949
	131	Meta Financial Group, Inc.		5,359
	226	MidSouth Bancorp, Inc.		2,931
	180	MidWestOne Financial Group, Inc.		5,265
	1,195	Monmouth Real Estate Investment Corp. REIT		12,344
	334	National Health Investors, Inc. REIT		22,284
	4,182	National Penn Bancshares, Inc.		43,493
	2,555	National Retail Properties, Inc. REIT		98,112
	432	NewStar Financial, Inc.(b)		4,968
	410	Nicholas Financial, Inc.(b)		5,178
	323	Pacific Premier Bancorp, Inc.(b)		5,058
	1,056	Parkway Properties, Inc. REIT		17,181
	491	PICO Holdings, Inc.(b)		8,843
	717	Pinnacle Financial Partners, Inc.		34,165
	1,102	Post Properties, Inc. REIT		63,001
	1,319	PrivateBancorp, Inc.		48,895
	1,949	ProAssurance Corp.		87,608
	1,162	Prosperity Bancshares, Inc.		61,981
	406	PS Business Parks, Inc. REIT		30,998
	1,824	Radian Group, Inc.		32,577
	5,924	Resource Capital Corp. REIT		26,125
	682	Rouse Properties, Inc. REIT		11,915
	415	Safeguard Scientifics, Inc.(b)		7,466
	3,098	Santander Consumer USA Holdings, Inc.		76,490
	291	Saul Centers, Inc. REIT		14,643
	2,168	SEI Investments Co.		98,991
	738	Select Income REIT		17,114
	732	Southside Bancshares, Inc.		19,998
	625	Sovran Self Storage, Inc. REIT		54,588
	3,401	Spirit Realty Capital, Inc. REIT		38,397
	1,420	Sterling Bancorp		18,432
	1,891	Summit Hotel Properties, Inc. REIT		24,904
	5,056	Symetra Financial Corp.		120,080
	1,011	Taubman Centers, Inc. REIT		72,802
	276	Territorial Bancorp, Inc.		6,376
	1,426	TFS Financial Corp.		20,848
	362	Tompkins Financial Corp.		18,878
	948	UMB Financial Corp.		47,201
	684	UMH Properties, Inc. REIT		6,888

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

55

PowerShares Fundamental Pure Small Core Portfolio (PXSC) (continued)

April 30, 2015

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	710	Union Bankshares Corp.	$	15,450
	1,527	United Financial Bancorp, Inc.		19,469
	227	Universal Health Realty Income Trust REIT		11,273
	457	Walker & Dunlop, Inc.(b)		8,747
	1,108	Western Alliance Bancorp(b)		34,259
	1,224	Wintrust Financial Corp.		59,658
	205	WSFS Financial Corp.		14,590
				3,523,489
		Health Care—9.9%
	534	Aceto Corp.		10,349
	158	Addus HomeCare Corp.(b)		4,241
	341	Almost Family, Inc.(b)		14,758
	2,773	Alphatec Holdings, Inc.(b)		3,938
	192	Analogic Corp.		16,224
	874	AngioDynamics, Inc.(b)		14,587
	32	Atrion Corp.		10,395
	613	Bio-Rad Laboratories, Inc., Class A(b)		82,418
	1,605	Bruker Corp.(b)		30,431
	459	Capital Senior Living Corp.(b)		12,012
	466	Chemed Corp.		53,706
	192	Computer Programs & Systems, Inc.		10,047
	581	CONMED Corp.		29,184
	155	CorVel Corp.(b)		5,540
	210	Cynosure, Inc., Class A(b)		7,018
	625	Emergent Biosolutions, Inc.(b)		18,556
	1,074	Envision Healthcare Holdings, Inc.(b)		40,769
	301	Exactech, Inc.(b)		6,577
	696	Greatbatch, Inc.(b)		37,528
	1,107	Haemonetics Corp.(b)		44,867
	1,017	Hanger, Inc.(b)		22,720
	2,256	HealthSouth Corp.		102,016
	283	ICU Medical, Inc.(b)		23,877
	1,722	Impax Laboratories, Inc.(b)		77,938
	565	Integra LifeSciences Holdings Corp.(b)		33,211
	319	Landauer, Inc.		10,291
	1,009	Meridian Bioscience, Inc.		17,879
	1,196	Merit Medical Systems, Inc.(b)		23,214
	490	Omnicell, Inc.(b)		17,410
	2,196	Patterson Cos., Inc.		103,113
	2,115	PerkinElmer, Inc.		108,415
	1,033	Prestige Brands Holdings, Inc.(b)		40,545
	1,485	Quality Systems, Inc.		23,159
	308	Quidel Corp.(b)		7,176
	801	Quintiles Transnational Holdings, Inc.(b)		52,770
	2,374	Rigel Pharmaceuticals, Inc.(b)		10,113
	2,263	RTI Surgical, Inc.(b)		12,673
	5,256	Select Medical Holdings Corp.		76,475
	818	Sirona Dental Systems, Inc.(b)		75,869
	1,725	STERIS Corp.		114,713
	70	Utah Medical Products, Inc.		3,774
	2,289	VCA, Inc.(b)		116,670
	668	VIVUS, Inc.(b)		1,490
	1,030	West Pharmaceutical Services, Inc.		54,878
	842	Wright Medical Group, Inc.(b)		21,362
				1,604,896

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrials—20.6%
	1,213	A.O. Smith Corp.	$	77,511
	462	AAON, Inc.		11,074
	1,404	Actuant Corp., Class A		33,443
	482	Acuity Brands, Inc.		80,470
	1,791	Aegion Corp.(b)		32,990
	189	Alamo Group, Inc.		11,676
	510	Altra Industrial Motion Corp.		13,449
	156	AMERCO		50,238
	824	Ameresco, Inc., Class A(b)		5,537
	165	American Railcar Industries, Inc.		8,752
	2,140	Babcock & Wilcox Co. (The)		69,165
	106	Barrett Business Services, Inc.		4,714
	1,502	Beacon Roofing Supply, Inc.(b)		44,639
	1,937	Blount International, Inc.(b)		25,685
	542	CAI International, Inc.(b)		12,910
	655	Celadon Group, Inc.		16,925
	312	CIRCOR International, Inc.		17,048
	927	CLARCOR, Inc.		60,255
	1,452	Copart, Inc.(b)		51,648
	425	Corporate Executive Board Co. (The)		35,628
	525	Cubic Corp.		26,030
	1,032	Curtiss-Wright Corp.		75,398
	841	DigitalGlobe, Inc.(b)		27,055
	1,982	Donaldson Co., Inc.		74,067
	1,168	EnerSys		79,307
	212	Erickson, Inc.(b)		753
	793	ESCO Technologies, Inc.		29,103
	782	Esterline Technologies Corp.(b)		87,029
	185	Exponent, Inc.		16,393
	492	Forward Air Corp.		24,782
	659	Franklin Electric Co., Inc.		23,829
	1,576	Generac Holdings, Inc.(b)		65,703
	560	Global Power Equipment Group, Inc.		6,804
	351	Gorman-Rupp Co. (The)		9,516
	334	GP Strategies Corp.(b)		10,885
	748	Graco, Inc.		53,572
	123	Graham Corp.		2,878
	2,262	Griffon Corp.		38,024
	2,085	HD Supply Holdings, Inc.(b)		68,805
	1,277	Healthcare Services Group, Inc.		38,655
	1,711	Hillenbrand, Inc.		50,286
	1,316	Hub Group, Inc., Class A(b)		52,508
	437	Huron Consulting Group, Inc.(b)		26,491
	1,291	IDEX Corp.		96,838
	1,694	InnerWorkings, Inc.(b)		10,723
	2,920	KAR Auction Services, Inc.		108,653
	2,095	Kratos Defense & Security Solutions, Inc.(b)		11,460
	959	Landstar System, Inc.		59,755
	1,351	Lincoln Electric Holdings, Inc.		90,328
	778	Marten Transport Ltd.		17,318
	931	Mobile Mini, Inc.		35,881
	1,376	Moog, Inc., Class A(b)		96,155
	921	MSC Industrial Direct Co., Inc., Class A		65,446
	928	MYR Group, Inc.(b)		27,209
	731	Nordson Corp.		58,224
	125	Patrick Industries, Inc.(b)		7,508

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

56

PowerShares Fundamental Pure Small Core Portfolio (PXSC) (continued)

April 30, 2015

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrials (continued)
	276	Powell Industries, Inc.	$	9,160
	227	PowerSecure International, Inc.(b)		2,976
	368	RBC Bearings, Inc.		26,860
	1,299	Regal Beloit Corp.		101,582
	4,634	Southwest Airlines Co.		187,955
	545	SP Plus Corp.(b)		12,404
	148	Sparton Corp.(b)		3,814
	240	Stock Building Supply Holdings, Inc.(b)		4,409
	1,984	Swift Transportation Co., Class A(b)		48,013
	1,299	TAL International Group, Inc.(b)		50,063
	248	TASER International, Inc.(b)		7,487
	462	Team, Inc.(b)		18,055
	797	Teledyne Technologies, Inc.(b)		83,661
	347	Tennant Co.		22,309
	2,255	Tetra Tech, Inc.		61,133
	468	Thermon Group Holdings, Inc.(b)		10,890
	1,839	Titan International, Inc.		19,107
	1,828	Titan Machinery, Inc.(b)		26,780
	797	Toro Co. (The)		53,431
	280	Trex Co., Inc.(b)		13,138
	319	UniFirst Corp.		36,120
	166	Universal Truckload Services, Inc.		3,526
	360	US Ecology, Inc.		16,888
	1,272	Wabash National Corp.(b)		17,833
	655	WABCO Holdings, Inc.(b)		81,515
	807	Watsco, Inc.		97,074
	1,139	Wesco Aircraft Holdings, Inc.(b)		17,860
	1,318	Woodward, Inc.		62,012
				3,333,183
		Information Technology—11.2%
	1,652	ARRIS Group, Inc.(b)		55,631
	142	Aspen Technology, Inc.(b)		6,303
	249	Badger Meter, Inc.		15,493
	645	Blackbaud, Inc.		32,592
	2,631	Broadridge Financial Solutions, Inc.		141,864
	179	Cass Information Systems, Inc.		9,356
	793	Ciena Corp.(b)		16,891
	516	Coherent, Inc.(b)		30,960
	421	Computer Task Group, Inc.		3,465
	359	Comverse, Inc.(b)		8,796
	1,084	CSG Systems International, Inc.		31,566
	488	Dealertrack Technologies, Inc.(b)		19,183
	353	Demand Media, Inc.(b)		2,263
	1,070	Dolby Laboratories, Inc., Class A		43,078
	637	DST Systems, Inc.		73,306
	391	DTS, Inc.(b)		14,017
	1,544	EchoStar Corp., Class A(b)		77,200
	635	Electronics for Imaging, Inc.(b)		26,499
	940	Epiq Systems, Inc.		16,835
	690	Exar Corp.(b)		6,810
	1,680	Extreme Networks, Inc.(b)		4,234
	227	FARO Technologies, Inc.(b)		9,041
	332	Forrester Research, Inc.		11,550
	1,150	Global Payments, Inc.		115,322
	952	Heartland Payment Systems, Inc.		48,457
	1,617	II-VI, Inc.(b)		28,766

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	1,712	Infinera Corp.(b)	$	32,186
	1,191	Intralinks Holdings, Inc.(b)		11,672
	4,602	JDS Uniphase Corp.(b)		58,261
	310	KVH Industries, Inc.(b)		4,182
	2,086	Lattice Semiconductor Corp.(b)		12,370
	2,076	Limelight Networks, Inc.(b)		7,681
	414	Manhattan Associates, Inc.(b)		21,760
	1,577	ManTech International Corp., Class A		46,096
	2,494	Mentor Graphics Corp.		59,681
	1,188	Mercury Systems, Inc.(b)		16,406
	112	MicroStrategy, Inc., Class A(b)		20,397
	497	MoneyGram International, Inc.(b)		3,852
	280	MTS Systems Corp.		19,762
	505	Nanometrics, Inc.(b)		7,807
	1,687	National Instruments Corp.		48,248
	1,222	NETGEAR, Inc.(b)		36,990
	1,383	NeuStar, Inc., Class A(b)		41,490
	2,702	Oclaro, Inc.(b)		5,188
	1,005	PC Connection, Inc.		24,412
	520	PC-Tel, Inc.		4,108
	603	Perficient, Inc.(b)		12,440
	820	Plantronics, Inc.		43,681
	1,343	PTC, Inc.(b)		51,491
	1,211	Rambus, Inc.(b)		16,760
	346	Rightside Group Ltd.(b)		2,816
	363	Rogers Corp.(b)		26,394
	586	Rosetta Stone, Inc.(b)		4,899
	633	Rubicon Technology, Inc.(b)		2,431
	756	Seachange International, Inc.(b)		5,073
	1,296	Semtech Corp.(b)		30,184
	689	ServiceSource International, Inc.(b)		2,460
	615	Silicon Laboratories, Inc.(b)		31,777
	690	SunPower Corp.(b)		22,211
	2,326	Take-Two Interactive Software, Inc.(b)		55,126
	1,295	Telenav, Inc.(b)		10,826
	4,603	Teradyne, Inc.		84,005
	246	TESSCO Technologies, Inc.		6,216
	1,144	Tessera Technologies, Inc.		41,310
	995	Veeco Instruments, Inc.(b)		29,363
				1,811,490
		Materials—6.0%
	1,536	AptarGroup, Inc.		95,339
	1,498	Axiall Corp.		61,118
	3,110	Berry Plastics Group, Inc.(b)		106,424
	1,094	Calgon Carbon Corp.		24,276
	144	Chase Corp.		5,157
	741	Clearwater Paper Corp.(b)		47,402
	795	Compass Minerals International, Inc.		70,222
	128	Deltic Timber Corp.		8,192
	367	Eagle Materials, Inc.		30,604
	795	FutureFuel Corp.		8,642
	320	Hawkins, Inc.		12,624
	790	Innophos Holdings, Inc.		41,744
	546	Innospec, Inc.		23,860
	2,239	Intrepid Potash, Inc.(b)		28,055
	310	KMG Chemicals, Inc.		9,077

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

57

PowerShares Fundamental Pure Small Core Portfolio (PXSC) (continued)

April 30, 2015

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Materials (continued)
	2,194	Louisiana-Pacific Corp.(b)	$	33,437
	728	LSB Industries, Inc.(b)		30,874
	215	NewMarket Corp.		96,083
	1,700	OMNOVA Solutions, Inc.(b)		13,583
	1,537	PolyOne Corp.		60,020
	293	Quaker Chemical Corp.		24,383
	748	Schweitzer-Mauduit International, Inc.		33,069
	588	Stepan Co.		29,947
	3,618	Stillwater Mining Co.(b)		48,590
	322	Trecora Resources(b)		3,864
	175	UFP Technologies, Inc.(b)		3,551
	848	Zep, Inc.		16,858
				966,995
		Telecommunication Services—1.0%
	291	Atlantic Tele-Network, Inc.		19,212
	1,007	IDT Corp., Class B		17,149
	1,486	Inteliquent, Inc.		28,249
	4,034	Iridium Communications, Inc.(b)		41,026
	589	Shenandoah Telecommunications Co.		20,297
	5,948	Vonage Holdings Corp.(b)		27,539
				153,472
		Utilities—1.9%
	1,090	American States Water Co.		41,845
	4,001	Aqua America, Inc.		107,307
	462	Chesapeake Utilities Corp.		22,074
	304	Connecticut Water Service, Inc.		10,944
	2,176	UIL Holdings Corp.		108,539
	333	York Water Co. (The)		8,378
				299,087
		Total Common Stocks and Other Equity Interests (Cost $13,894,101)		16,151,845
		Money Market Fund—0.5%
	85,991	Invesco Premier Portfolio—Institutional Class(c) (Cost $85,991)		85,991
		Total Investments (Cost $13,980,092)—100.5%		16,237,836
		Other assets less liabilities—(0.5)%		(85,103	)
		Net Assets—100.0%	$	16,152,733

Investment Abbreviations:

REIT—Real Estate Investment Trust

Notes to Schedule of Investments:

^(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.

^(b)  Non-income producing security.

^(c)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

58

Schedule of Investments^(a)

PowerShares Fundamental Pure Small Growth Portfolio (PXSG)

April 30, 2015

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—13.6%
	1,975	AMC Networks, Inc., Class A(b)	$	148,994
	893	American Public Education, Inc.(b)		24,906
	1,692	Black Diamond, Inc.(b)		15,245
	3,132	Bridgepoint Education, Inc.(b)		27,468
	689	Buffalo Wild Wings, Inc.(b)		109,758
	368	Cavco Industries, Inc.(b)		24,130
	783	Churchill Downs, Inc.		93,310
	405	Chuy’s Holdings, Inc.(b)		9,161
	6,424	Cumulus Media, Inc., Class A(b)		14,647
	1,942	Deckers Outdoor Corp.(b)		143,708
	1,252	Del Frisco’s Restaurant Group, Inc.(b)		25,253
	709	Diamond Resorts International, Inc.(b)		22,695
	1,159	Dorman Products, Inc.(b)(c)		54,276
	5,556	DSW, Inc., Class A		201,516
	3,035	Dunkin’ Brands Group, Inc.		158,154
	2,285	Five Below, Inc.(b)		77,050
	2,150	Fossil Group, Inc.(b)		180,557
	2,701	Francesca’s Holdings Corp.(b)		45,728
	1,160	Gentherm, Inc.(b)		61,167
	1,369	G-III Apparel Group Ltd.(b)		152,205
	4,665	GNC Holdings, Inc., Class A		200,828
	1,222	Grand Canyon Education, Inc.(b)		55,332
	6,778	Groupon, Inc., Class A(b)		46,904
	1,342	Hibbett Sports, Inc.(b)		62,806
	6,527	Hilton Worldwide Holdings, Inc.(b)		189,022
	3,782	Iconix Brand Group, Inc.(b)		99,504
	1,046	iRobot Corp.(b)		33,911
	2,504	K12, Inc.(b)		40,490
	2,514	Krispy Kreme Doughnuts, Inc.(b)		44,749
	772	LifeLock, Inc.(b)		11,279
	4,087	Lions Gate Entertainment Corp.		126,738
	661	Lumber Liquidators Holdings, Inc.(b)		18,171
	711	Mattress Firm Holding Corp.(b)(c)		42,006
	1,328	Monro Muffler Brake, Inc.		79,534
	608	Morningstar, Inc.		46,141
	1,016	Nexstar Broadcasting Group, Inc., Class A		59,395
	1,200	Panera Bread Co., Class A(b)		218,976
	5,474	Pier 1 Imports, Inc.		69,246
	598	Popeyes Louisiana Kitchen, Inc.(b)		33,297
	1,202	Restoration Hardware Holdings, Inc.(b)		103,576
	3,026	Scripps Networks Interactive, Inc., Class A		211,396
	1,758	Shutterfly, Inc.(b)		78,688
	4,029	Six Flags Entertainment Corp.		189,444
	4,212	Smith & Wesson Holding Corp.(b)		62,611
	3,216	Steven Madden Ltd.(b)		125,488
	994	Sturm Ruger & Co., Inc.		54,481
	4,010	Texas Roadhouse, Inc.		134,736
	1,862	Tumi Holdings, Inc.(b)		43,552
	1,802	Ulta Salon, Cosmetics & Fragrance, Inc.(b)		272,264
	1,066	Vera Bradley, Inc.(b)		15,180
	2,299	Vitamin Shoppe, Inc.(b)		96,282
	644	WCI Communities, Inc.(b)		14,973
				4,470,928
		Consumer Staples—3.1%
	199	Boston Beer Co., Inc. (The), Class A(b)		49,312
	3,076	Boulder Brands, Inc.(b)		29,345

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Staples (continued)
	858	Chefs’ Warehouse, Inc. (The)(b)	$	15,624
	4,927	Coty, Inc., Class A(b)		117,805
	9,771	Darling Ingredients, Inc.(b)		133,472
	3,681	Hain Celestial Group, Inc. (The)(b)		221,743
	1,152	Inter Parfums, Inc.		34,767
	915	Medifast, Inc.(b)		27,450
	2,243	Nu Skin Enterprises, Inc., Class A		126,842
	799	PriceSmart, Inc.		64,288
	1,431	Spectrum Brands Holdings, Inc.		130,836
	2,001	Sprouts Farmers Market, Inc.(b)		64,002
				1,015,486
		Energy—3.7%
	571	Antero Resources Corp.(b)		25,301
	2,787	Approach Resources, Inc.(b)(c)		24,442
	1,036	Bonanza Creek Energy, Inc.(b)		28,552
	3,789	C&J Energy Services Ltd.(b)		66,118
	868	CARBO Ceramics, Inc.(c)		38,392
	1,870	Carrizo Oil & Gas, Inc.(b)		104,215
	4,001	Clean Energy Fuels Corp.(b)(c)		39,490
	9,314	Cobalt International Energy, Inc.(b)		99,660
	1,163	Contango Oil & Gas Co.(b)		29,156
	1,970	Continental Resources, Inc.(b)		103,681
	389	Diamondback Energy, Inc.(b)		32,120
	3,931	Forum Energy Technologies, Inc.(b)		91,435
	440	Geospace Technologies Corp.(b)		9,504
	1,807	Gulfport Energy Corp.(b)		88,435
	18,558	Halcon Resources Corp.(b)(c)		27,651
	2,072	Laredo Petroleum, Inc.(b)(c)		32,738
	3,710	Magnum Hunter Resources Corp.(b)(c)		8,125
	1,166	Matador Resources Co.(b)		32,321
	2,335	Miller Energy Resources, Inc.(b)(c)		1,693
	3,901	Northern Oil and Gas, Inc.(b)(c)		34,485
	2,151	Oasis Petroleum, Inc.(b)(c)		38,589
	3,322	Renewable Energy Group, Inc.(b)		30,596
	6,856	Resolute Energy Corp.(b)(c)		8,501
	2,333	Rex Energy Corp.(b)		11,665
	462	RigNet, Inc.(b)		17,307
	3,928	RPC, Inc.		62,494
	544	RSP Permian, Inc.(b)		15,787
	843	Sanchez Energy Corp.(b)(c)		12,384
	1,724	Triangle Petroleum Corp.(b)(c)		10,292
	2,391	US Silica Holdings, Inc.(c)		89,304
				1,214,433
		Financials—27.9%
	3,290	American Assets Trust, Inc. REIT		130,942
	4,021	American Homes 4 Rent, Class A REIT		67,915
	2,128	AmTrust Financial Services, Inc.		126,552
	3,632	Apollo Commercial Real Estate Finance, Inc. REIT		62,071
	977	Ares Commercial Real Estate Corp. REIT		11,089
	39,641	ARMOUR Residential REIT, Inc. REIT		118,923
	3,776	Associated Estates Realty Corp. REIT		107,616
	2,260	Bank of the Ozarks, Inc.		87,598
	4,268	BBCN Bancorp, Inc.		60,563
	1,343	BNC Bancorp		24,510

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

59

PowerShares Fundamental Pure Small Growth Portfolio (PXSG) (continued)

April 30, 2015

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	285	BofI Holding, Inc.(b)	$	26,166
	4,445	Campus Crest Communities, Inc. REIT		28,137
	2,398	Capital Bank Financial Corp., Class A(b)		65,034
	2,031	Cardinal Financial Corp.		41,900
	1,589	CareTrust REIT, Inc. REIT		19,847
	2,710	CBOE Holdings, Inc.		152,492
	19,689	Chambers Street Properties REIT		147,668
	1,244	Chatham Lodging Trust REIT		34,384
	3,064	Chesapeake Lodging Trust REIT		97,282
	11,238	Chimera Investment Corp. REIT		170,705
	3,363	Colony Capital, Inc., Class A REIT		87,135
	3,569	Columbia Banking System, Inc.		105,999
	1,055	CoreSite Realty Corp. REIT		50,724
	265	Credit Acceptance Corp.(b)		62,593
	1,796	Customers Bancorp, Inc.(b)		45,277
	2,311	CyrusOne, Inc. REIT		75,061
	4,475	DuPont Fabros Technology, Inc. REIT		139,396
	7,726	Dynex Capital, Inc. REIT		61,808
	770	Eagle Bancorp, Inc.(b)		28,382
	1,375	Encore Capital Group, Inc.(b)		55,605
	3,817	Equity LifeStyle Properties, Inc. REIT		201,614
	7,392	EverBank Financial Corp.		137,269
	852	Evercore Partners, Inc., Class A		41,100
	3,374	Excel Trust, Inc. REIT		53,478
	4,207	Extra Space Storage, Inc. REIT		277,368
	1,593	Fidelity & Guaranty Life		35,651
	870	Fidus Investment Corp.		14,486
	510	Financial Engines, Inc.		21,507
	1,391	First Cash Financial Services, Inc.(b)		67,241
	746	First Connecticut Bancorp, Inc.		11,026
	518	First NBC Bank Holding Co.(b)		18,223
	5,702	Government Properties Income Trust REIT		118,830
	2,342	Green Dot Corp., Class A(b)		37,706
	1,472	GSV Capital Corp.(b)		14,161
	8,386	Hancock Holding Co.		244,116
	359	HCI Group, Inc.		15,645
	6,539	Healthcare Trust of America, Inc., Class A REIT		169,295
	1,088	HFF, Inc., Class A		42,639
	1,703	Home BancShares, Inc.		55,995
	1,106	Howard Hughes Corp. (The)(b)		164,208
	2,313	Hudson Pacific Properties, Inc. REIT		69,760
	2,018	INTL FCStone, Inc.(b)		64,778
	4,029	Investors Bancorp, Inc.		47,703
	1,113	Kennedy-Wilson Holdings, Inc.		27,580
	4,802	Kilroy Realty Corp. REIT		340,894
	2,033	LegacyTexas Financial Group, Inc.		51,740
	957	MarketAxess Holdings, Inc.		82,158
	10,929	Medical Properties Trust, Inc. REIT		152,787
	2,375	Medley Capital Corp.(c)		22,396
	3,447	Mid-America Apartment Communities, Inc. REIT		257,181
	5,373	MSCI, Inc.		328,774
	671	Nationstar Mortgage Holdings, Inc.(b)		16,842
	5,685	New York Mortgage Trust, Inc. REIT(c)		44,400
	1,061	Northfield Bancorp, Inc.		15,310
	6,094	NorthStar Asset Management Group, Inc.		128,157
	6,094	NorthStar Realty Finance Corp. REIT		114,323

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	4,586	Ocwen Financial Corp.(b)(c)	$	38,935
	7,738	OMEGA Healthcare Investors, Inc. REIT		279,264
	3,029	Oritani Financial Corp.		45,132
	1,988	Park Sterling Corp.		13,320
	3,232	Pebblebrook Hotel Trust REIT		138,782
	6,838	PennyMac Mortgage Investment Trust REIT		143,256
	2,250	PRA Group, Inc.(b)		123,244
	735	Regional Management Corp.(b)		11,870
	3,278	Retail Opportunity Investments Corp. REIT		55,005
	8,833	RLJ Lodging Trust REIT		262,075
	1,731	Signature Bank(b)		232,110
	1,010	South State Corp.		68,397
	1,641	STAG Industrial, Inc., Class A REIT		35,659
	11,910	Starwood Property Trust, Inc. REIT		285,959
	4,288	Stifel Financial Corp.(b)		226,578
	2,451	Sun Communities, Inc. REIT		152,109
	2,221	SVB Financial Group(b)		294,860
	4,711	Tanger Factory Outlet Centers, Inc. REIT		158,195
	571	Tejon Ranch Co.(b)		14,104
	987	Terreno Realty Corp. REIT		21,003
	1,920	Texas Capital Bancshares, Inc.(b)		101,107
	30,434	Two Harbors Investment Corp. REIT		319,557
	190	Virtus Investment Partners, Inc.		25,388
	3,822	Waddell & Reed Financial, Inc., Class A		188,501
	3,412	Walter Investment Management Corp.(b)(c)		60,085
	443	Westwood Holdings Group, Inc.		25,955
	1,628	Whitestone REIT		23,932
				9,144,097
		Health Care—11.2%
	687	Abaxis, Inc.		43,968
	494	ABIOMED, Inc.(b)		31,231
	627	Acadia Healthcare Co., Inc.(b)		42,949
	2,712	Accuray, Inc.(b)(c)		22,049
	1,093	Acorda Therapeutics, Inc.(b)		32,867
	1,695	Air Methods Corp.(b)		77,461
	876	Akorn, Inc.(b)		36,477
	1,394	Align Technology, Inc.(b)		82,023
	10,255	Allscripts Healthcare Solutions, Inc.(b)		136,392
	742	AMAG Pharmaceuticals, Inc.(b)		37,820
	436	Anika Therapeutics, Inc.(b)		14,876
	1,908	Bio-Reference Laboratories, Inc.(b)		63,193
	1,367	Bio-Techne Corp.		131,177
	945	Cantel Medical Corp.		42,327
	612	Cepheid, Inc.(b)		34,333
	1,873	Cooper Cos., Inc. (The)		333,525
	1,345	CryoLife, Inc.		13,719
	559	Cyberonics, Inc.(b)		34,049
	1,589	Ensign Group, Inc. (The)		66,913
	1,044	ExamWorks Group, Inc.(b)		42,752
	3,895	Exelixis, Inc.(b)(c)		10,010
	2,091	Globus Medical, Inc., Class A(b)		49,954
	433	HealthStream, Inc.(b)		12,531
	3,415	HMS Holdings Corp.(b)		58,089
	1,424	IDEXX Laboratories, Inc.(b)		178,527
	1,894	Infinity Pharmaceuticals, Inc.(b)		23,997
	908	IPC Healthcare, Inc.(b)		44,419

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

60

PowerShares Fundamental Pure Small Growth Portfolio (PXSG) (continued)

April 30, 2015

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Health Care (continued)
	375	Isis Pharmaceuticals, Inc.(b)	$	21,270
	1,641	Luminex Corp.(b)		25,468
	3,874	Masimo Corp.(b)		130,786
	4,320	MedAssets, Inc.(b)		87,437
	2,595	Medicines Co. (The)(b)		66,458
	402	Medidata Solutions, Inc.(b)		21,479
	6,305	Merge Healthcare, Inc.(b)		31,336
	1,760	Momenta Pharmaceuticals, Inc.(b)		30,712
	3,081	Myriad Genetics, Inc.(b)(c)		101,765
	1,421	Natus Medical, Inc.(b)		53,586
	865	Neogen Corp.(b)		38,527
	750	Neurocrine Biosciences, Inc.(b)		25,568
	2,156	NuVasive, Inc.(b)		96,438
	1,572	NxStage Medical, Inc.(b)		28,815
	2,931	PAREXEL International Corp.(b)		186,338
	854	PhotoMedex, Inc.(b)(c)		1,759
	404	Premier, Inc., Class A(b)		15,312
	5,646	ResMed, Inc.		361,005
	3,771	SciClone Pharmaceuticals, Inc.(b)		30,809
	351	Seattle Genetics, Inc.(b)		12,053
	573	Spectranetics Corp. (The)(b)		14,697
	2,718	Spectrum Pharmaceuticals, Inc.(b)(c)		15,357
	3,518	Targacept, Inc.(b)		8,091
	2,950	Team Health Holdings, Inc.(b)		175,732
	2,594	Thoratec Corp.(b)		104,045
	1,492	United Therapeutics Corp.(b)		238,257
	794	US Physical Therapy, Inc.		37,445
	492	Vascular Solutions, Inc.(b)		15,774
				3,673,947
		Industrials—12.5%
	4,265	Acacia Research Corp.		47,000
	792	Advisory Board Co. (The)(b)		41,097
	6,762	Air Lease Corp.		261,216
	804	Allegiant Travel Co.		123,623
	4,342	Allison Transmission Holdings, Inc.		133,213
	610	Argan, Inc.		19,709
	484	Astronics Corp.(b)		32,578
	1,540	AZZ, Inc.		71,441
	1,403	Chart Industries, Inc.(b)		56,892
	4,246	Clean Harbors, Inc.(b)		234,591
	2,489	Colfax Corp.(b)		123,429
	485	DXP Enterprises, Inc.(b)		21,849
	1,677	Echo Global Logistics, Inc.(b)		48,465
	2,090	Genesee & Wyoming, Inc., Class A(b)		194,265
	1,400	HEICO Corp.		78,176
	710	Heritage-Crystal Clean, Inc.(b)		8,321
	4,652	Hexcel Corp.		233,298
	804	Hyster-Yale Materials Handling, Inc., Class A		58,965
	1,321	KEYW Holding Corp. (The)(b)		12,748
	2,846	Kirby Corp.(b)		223,496
	569	Lindsay Corp.(c)		45,059
	822	Manitex International, Inc.(b)		8,146
	5,386	MasTec, Inc.(b)		96,625
	1,546	Middleby Corp. (The)(b)		156,672
	1,085	Mistras Group, Inc.(b)		19,487
	1,115	Multi-Color Corp.		70,000

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrials (continued)
	3,498	Old Dominion Freight Line, Inc.(b)	$	248,813
	2,598	On Assignment, Inc.(b)		87,423
	7,841	Pendrell Corp., Class A(b)		8,547
	1,792	Performant Financial Corp.(b)		5,322
	1,765	Primoris Services Corp.		33,941
	221	Proto Labs, Inc.(b)		15,470
	1,922	Raven Industries, Inc.		38,325
	2,519	Roadrunner Transportation Systems, Inc.(b)		61,640
	3,577	Rollins, Inc.		88,710
	2,781	RPX Corp.(b)		43,272
	2,598	Spirit Airlines, Inc.(b)		177,885
	1,038	Sun Hydraulics Corp.		40,389
	4,717	Triumph Group, Inc.		279,435
	1,588	Valmont Industries, Inc.		200,120
	361	WageWorks, Inc.(b)		18,194
	5,994	Waste Connections, Inc.		284,175
	832	XPO Logistics, Inc.(b)		40,352
				4,092,374
		Information Technology—24.2%
	4,570	ACI Worldwide, Inc.(b)		105,247
	1,191	Actua Corp.(b)		17,234
	1,396	Advent Software, Inc.		60,600
	434	Ambarella, Inc.(b)		31,747
	2,481	Aruba Networks, Inc.(b)		61,057
	1,915	Bankrate, Inc.(b)		23,746
	2,062	Bazaarvoice, Inc.(b)		11,094
	554	Blackhawk Network Holdings, Inc., Class A(b)		20,371
	2,241	Blucora, Inc.(b)		30,634
	1,081	Bottomline Technologies (de), Inc.(b)		28,928
	693	BroadSoft, Inc.(b)		21,926
	515	CalAmp Corp.(b)		10,151
	3,314	Calix, Inc.(b)		24,490
	1,909	Cardtronics, Inc.(b)		72,027
	737	Cavium, Inc.(b)		47,750
	1,156	CEVA, Inc.(b)		23,929
	4,758	Cirrus Logic, Inc.(b)		160,725
	2,326	Cognex Corp.(b)		104,414
	785	CommVault Systems, Inc.(b)		35,914
	851	comScore, Inc.(b)		44,558
	1,009	Constant Contact, Inc.(b)		35,164
	471	CoStar Group, Inc.(b)		96,286
	1,249	Cray, Inc.(b)		35,084
	1,706	Datalink Corp.(b)		19,721
	2,304	Ebix, Inc.(c)		62,876
	560	Ellie Mae, Inc.(b)		30,800
	1,098	EnerNOC, Inc.(b)		12,133
	369	Envestnet, Inc.(b)		18,915
	807	EPAM Systems, Inc.(b)		52,221
	2,066	ExlService Holdings, Inc.(b)		71,132
	1,617	FactSet Research Systems, Inc.		254,500
	1,001	FEI Co.		75,535
	5,094	Finisar Corp.(b)		103,561
	8,060	FLIR Systems, Inc.		248,973
	2,713	Fortinet, Inc.(b)		102,389
	2,247	Gartner, Inc.(b)		186,456
	450	Guidewire Software, Inc.(b)		22,477

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

61

PowerShares Fundamental Pure Small Growth Portfolio (PXSG) (continued)

April 30, 2015

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	1,951	Higher One Holdings, Inc.(b)	$	5,482
	962	HomeAway, Inc.(b)		26,888
	3,066	IAC/InterActiveCorp.		214,068
	861	IGATE Corp.(b)		40,949
	775	Infoblox, Inc.(b)		18,259
	3,934	Informatica Corp.(b)		189,107
	959	Inphi Corp.(b)		20,571
	258	Interactive Intelligence Group, Inc.(b)		11,347
	4,046	InterDigital, Inc.		221,397
	1,240	InvenSense, Inc.(b)		18,501
	880	IPG Photonics Corp.(b)		77,950
	3,873	Ixia(b)		46,399
	1,667	j2 Global, Inc.		115,640
	3,367	Jack Henry & Associates, Inc.		223,939
	1,549	Liquidity Services, Inc.(b)		14,499
	943	Littelfuse, Inc.		92,405
	1,724	LivePerson, Inc.(b)		16,206
	515	LogMeIn, Inc.(b)		33,053
	2,058	MAXIMUS, Inc.		131,733
	1,688	Maxwell Technologies, Inc.(b)(c)		9,453
	6,040	Microsemi Corp.(b)		201,494
	1,055	Monolithic Power Systems, Inc.		54,681
	964	Monotype Imaging Holdings, Inc.		31,243
	1,993	NeoPhotonics Corp.(b)		11,021
	1,487	NetScout Systems, Inc.(b)(c)		61,116
	2,449	NIC, Inc.		41,633
	17,730	Nuance Communications, Inc.(b)		271,801
	217	NVE Corp.		14,726
	1,290	OSI Systems, Inc.(b)		86,701
	230	Palo Alto Networks, Inc.(b)		33,976
	365	Pandora Media, Inc.(b)		6,512
	839	Pegasystems, Inc.		18,072
	784	Power Integrations, Inc.		38,800
	1,021	Procera Networks, Inc.(b)		11,752
	1,131	Qlik Technologies, Inc.(b)		39,347
	4,297	Rackspace Hosting, Inc.(b)		231,608
	2,008	RealD, Inc.(b)		24,658
	1,154	RealPage, Inc.(b)		22,895
	8,661	Rovi Corp.(b)		160,315
	1,111	Ruckus Wireless, Inc.(b)		12,976
	2,410	ShoreTel, Inc.(b)		16,774
	8,700	Skyworks Solutions, Inc.		802,575
	1,158	SolarWinds, Inc.(b)		56,487
	2,084	Solera Holdings, Inc.		101,116
	216	SPS Commerce, Inc.(b)		14,096
	2,892	SS&C Technologies Holdings, Inc.		174,012
	448	Stamps.com, Inc.(b)		27,727
	874	Stratasys Ltd.(b)(c)		32,731
	2,626	Super Micro Computer, Inc.(b)		75,550
	1,161	Synaptics, Inc.(b)		98,360
	1,127	Synchronoss Technologies, Inc.(b)		51,707
	1,201	Syntel, Inc.(b)		54,069
	858	Tangoe, Inc.(b)		11,737
	2,904	TiVo, Inc.(b)		32,089
	420	Tyler Technologies, Inc.(b)		51,219
	154	Ultimate Software Group, Inc. (The)(b)		25,598

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	1,685	Ultratech, Inc.(b)	$	33,633
	745	Universal Display Corp.(b)		32,832
	4,426	Vantiv, Inc., Class A(b)		173,057
	7,123	VeriFone Systems, Inc.(b)		254,790
	1,767	Verint Systems, Inc.(b)		108,547
	2,063	ViaSat, Inc.(b)		124,028
	947	Virtusa Corp.(b)		37,691
	685	Web.com Group, Inc.(b)		12,583
	1,581	WEX, Inc.(b)		178,194
	138	Yelp, Inc., Class A(b)		5,436
	192	Zillow Group, Inc., Class A(b)		18,747
	25,765	Zynga, Inc., Class A(b)		63,124
				7,936,447
		Materials—2.5%
	1,356	American Vanguard Corp.		14,794
	852	Balchem Corp.		44,662
	1,269	Flotek Industries, Inc.(b)		18,134
	3,635	Globe Specialty Metals, Inc.		72,409
	4,892	Gold Resource Corp.		16,486
	32,269	Hecla Mining Co.		97,452
	2,958	KapStone Paper and Packaging Corp.		82,676
	12,720	Molycorp, Inc.(b)(c)		11,738
	17,517	Rentech, Inc.(b)		21,021
	2,252	Royal Gold, Inc.		145,322
	6,263	Tronox Ltd., Class A		131,210
	2,041	Westlake Chemical Corp.		159,157
				815,061
		Telecommunication Services—0.2%
	1,528	8x8, Inc.(b)		13,339
	2,228	Boingo Wireless, Inc.(b)		18,403
	825	Cogent Communications Group, Inc.		28,867
	1,826	ORBCOMM, Inc.(b)		10,993
				71,602
		Utilities—1.1%
	8,279	ITC Holdings Corp.		298,044
	744	NRG Yield, Inc., Class A		36,605
	565	Pattern Energy Group, Inc.		16,374
				351,023
		Total Common Stocks and Other Equity Interests (Cost $27,639,263)		32,785,398
		Warrants—0.0%
		Energy—0.0%
	637	Magnum Hunter Resources Corp., expiring 05/15/16(b) (Cost $0)		0

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

62

PowerShares Fundamental Pure Small Growth Portfolio (PXSG) (continued)

April 30, 2015

Number of Shares			Value
		Money Market Fund—0.2%
	76,192	Invesco Premier Portfolio—Institutional Class(d) (Cost $76,192)	$	76,192
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $27,715,455)—100.2%		32,861,590
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—2.2%
	705,721	Invesco Liquid Assets Portfolio—Institutional Class(d)(e) (Cost $705,721)		705,721
		Total Investments (Cost $28,421,176)—102.4%		33,567,311
		Other assets less liabilities—(2.4)%		(776,667	)
		Net Assets—100.0%	$	32,790,644

Investment Abbreviations:

REIT—Real Estate Investment Trust

Notes to Schedule of Investments:

^(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.

^(b)  Non-income producing security.

^(c)  All or a portion of this security was out on loan at April 30, 2015.

^(d)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated.

^(e)  The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2G. The following table presents the Fund’s gross and net amount of assets available for offset by the Fund as of April 30, 2015.

Counterparty	Gross Amount of Securities on Loan at Value		Cash Collateral Received for Securities Loaned*			Net Amount
Brown Brothers Harriman & Co.	$	682,920	$	(682,920	)	$	—

* Amount does not include excess collateral received, if any.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

63

Schedule of Investments^(a)

PowerShares Fundamental Pure Small Value Portfolio (PXSV)

April 30, 2015

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—18.5%
	3,764	1-800-FLOWERS.COM, Inc., Class A(b)	$	39,785
	2,561	A H Belo Corp., Class A		17,133
	28,069	Aeropostale, Inc.(b)		86,733
	2,242	AMC Entertainment Holdings, Inc., Class A		67,395
	3,802	American Axle & Manufacturing Holdings, Inc.(b)		94,784
	4,865	ANN, Inc.(b)		184,189
	5,516	Aramark		169,507
	754	Arctic Cat, Inc.		26,759
	3,071	Asbury Automotive Group, Inc.(b)		258,056
	975	Ascent Capital Group, Inc., Series A(b)		39,039
	12,218	Barnes & Noble, Inc.(b)		267,574
	1,630	Bassett Furniture Industries, Inc.		45,999
	3,096	Beazer Homes USA, Inc.(b)		54,211
	6,268	bebe stores, Inc.		20,747
	2,770	Big 5 Sporting Goods Corp.		37,783
	134	Biglari Holdings, Inc.(b)		48,978
	591	Blue Nile, Inc.(b)		16,081
	2,987	Blyth, Inc.(b)		22,940
	2,879	Bob Evans Farms, Inc.		123,855
	10,604	Bon-Ton Stores, Inc. (The)(c)		76,031
	11,155	Boyd Gaming Corp.(b)		147,246
	4,932	Brinker International, Inc.		273,085
	5,503	Brown Shoe Co., Inc.		163,439
	3,749	Brunswick Corp.		187,600
	2,010	Build-A-Bear Workshop, Inc.(b)		37,044
	4,503	Burlington Stores, Inc.(b)		232,220
	6,534	Callaway Golf Co.		63,249
	26,843	Career Education Corp.(b)		112,741
	1,379	Carmike Cinemas, Inc.(b)		41,618
	3,927	Cato Corp. (The), Class A		154,488
	2,944	Children’s Place, Inc. (The)		178,583
	4,365	Christopher & Banks Corp.(b)		25,928
	3,597	Cinedigm Corp., Class A(b)		2,986
	2,863	Citi Trends, Inc.(b)		65,219
	8,682	Clear Channel Outdoor Holdings, Inc., Class A		98,801
	1,362	ClubCorp Holdings, Inc.		29,814
	1,862	Columbia Sportswear Co.		116,747
	9,471	Cooper Tire & Rubber Co.		402,423
	849	Cooper-Standard Holding, Inc.(b)		51,806
	6,509	Crocs, Inc.(b)		85,919
	1,445	CSS Industries, Inc.		40,951
	7,309	Denny’s Corp.(b)		76,087
	1,208	Destination Maternity Corp.		14,242
	4,750	Destination XL Group, Inc.(b)		23,132
	888	Dixie Group, Inc. (The)(b)		8,729
	3,669	DreamWorks Animation SKG, Inc., Class A(b)(c)		95,614
	4,597	E.W. Scripps Co. (The), Class A		107,064
	3,175	Entercom Communications Corp., Class A(b)		37,719
	2,525	Ethan Allen Interiors, Inc.		61,155
	3,958	EVINE Live, Inc.(b)		23,590
	9,128	Express, Inc.(b)		148,786
	5,263	Federal-Mogul Holdings Corp.(b)		67,893
	537	Flexsteel Industries, Inc.		19,337
	5,744	Fred’s, Inc., Class A		96,901
	2,649	Fuel Systems Solutions, Inc.(b)		29,404

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Discretionary (continued)
	3,252	Gray Television, Inc.(b)	$	43,122
	4,022	Group 1 Automotive, Inc.		317,658
	10,256	Harte-Hanks, Inc.		69,638
	1,486	Haverty Furniture Cos., Inc.		31,890
	6,195	hhgregg, Inc.(b)(c)		35,435
	1,339	Hooker Furniture Corp.		34,078
	10,708	Hovnanian Enterprises, Inc., Class A(b)(c)		33,409
	3,225	Hyatt Hotels Corp., Class A(b)		187,211
	2,612	International Speedway Corp., Class A		94,972
	5,766	Isle of Capri Casinos, Inc.(b)		81,993
	5,665	ITT Educational Services, Inc.(b)(c)		29,911
	3,300	Jack in the Box, Inc.		286,341
	3,028	John Wiley & Sons, Inc., Class A		172,233
	1,423	Journal Media Group, Inc.(b)		13,220
	2,657	Kate Spade & Co.(b)		86,884
	6,099	KB Home		88,375
	15,289	Lee Enterprises, Inc.(b)		45,867
	1,984	Libbey, Inc.		78,070
	1,481	Lifetime Brands, Inc.		21,549
	1,866	Lithia Motors, Inc., Class A		186,096
	2,006	Loral Space & Communications, Inc.(b)		138,414
	2,225	Luby’s, Inc.(b)		11,792
	1,339	M/I Homes, Inc.(b)		30,208
	3,061	Marcus Corp. (The)		59,292
	2,661	MarineMax, Inc.(b)		58,755
	2,939	Marriott Vacations Worldwide Corp.		241,615
	17,760	McClatchy Co. (The), Class A(b)		24,686
	4,396	MDC Holdings, Inc.(c)		117,989
	2,002	Media General, Inc.(b)		33,814
	4,398	Men’s Wearhouse, Inc. (The)		248,883
	3,741	Meredith Corp.		194,682
	2,005	Meritage Homes Corp.(b)		85,754
	5,410	Modine Manufacturing Co.(b)		66,489
	745	Monarch Casino & Resort, Inc.(b)		13,633
	1,501	Morgans Hotel Group Co.(b)		10,282
	906	NACCO Industries, Inc., Class A		44,376
	1,415	Nautilus, Inc.(b)		23,786
	5,496	New York & Co., Inc.(b)		13,905
	11,376	New York Times Co. (The), Class A		152,325
	3,564	Nutrisystem, Inc.		67,894
	3,880	Orbitz Worldwide, Inc.(b)		45,474
	10,789	Pacific Sunwear of California, Inc.(b)		22,657
	5,739	Penske Automotive Group, Inc.		280,121
	9,528	Pep Boys-Manny, Moe & Jack (The)(b)		87,276
	3,921	Perry Ellis International, Inc.(b)		93,790
	2,488	PetMed Express, Inc.		39,385
	5,235	Pinnacle Entertainment, Inc.(b)		192,439
	16,067	Quiksilver, Inc.(b)		26,671
	5,199	Radio One, Inc., Class D(b)		18,560
	1,813	Reading International, Inc., Class A(b)		24,149
	1,024	Red Robin Gourmet Burgers, Inc.(b)		76,892
	14,011	Regal Entertainment Group, Class A(c)		308,242
	10,615	Regis Corp.(b)		175,360
	19,697	Ruby Tuesday, Inc.(b)		143,394
	2,521	Ruth’s Hospitality Group, Inc.		36,681
	1,793	Ryland Group, Inc. (The)		73,907

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

64

PowerShares Fundamental Pure Small Value Portfolio (PXSV) (continued)

April 30, 2015

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Discretionary (continued)
	336	Saga Communications, Inc., Class A	$	13,437
	1,463	Salem Media Group, Inc., Class A		7,139
	3,891	Scholastic Corp.		158,130
	5,276	Scientific Games Corp., Class A(b)(c)		66,847
	3,494	Sears Hometown and Outlet Stores, Inc.(b)		24,213
	672	Shiloh Industries, Inc.(b)		7,815
	3,212	Skechers U.S.A., Inc., Class A(b)		288,823
	9,175	Sonic Automotive, Inc., Class A		214,236
	3,681	Sonic Corp.		105,461
	5,159	Spartan Motors, Inc.		24,299
	1,821	Speedway Motorsports, Inc.		41,701
	5,470	Stage Stores, Inc.		105,626
	3,737	Stein Mart, Inc.		44,209
	4,557	Stoneridge, Inc.(b)		54,866
	3,020	Strayer Education, Inc.(b)		153,174
	4,151	Superior Industries International, Inc.		77,209
	1,517	Systemax, Inc.(b)		15,853
	1,890	Tempur Sealy International, Inc.(b)		115,120
	3,445	Thor Industries, Inc.		207,286
	7,193	Toll Brothers, Inc.(b)		255,639
	5,068	Tower International, Inc.(b)		131,058
	4,294	Town Sports International Holdings, Inc.		26,322
	19,004	TravelCenters of America LLC(b)		326,489
	4,032	Tuesday Morning Corp.(b)		63,786
	2,118	Unifi, Inc.(b)		74,744
	3,131	Universal Technical Institute, Inc.		26,457
	4,264	VOXX International Corp., Class A(b)		40,636
	4,997	Weight Watchers International, Inc.(b)(c)		42,724
	23,547	Wendy’s Co. (The)		238,296
	2,884	West Marine, Inc.(b)		28,984
	751	Weyco Group, Inc.		21,403
	1,035	Winnebago Industries, Inc.(c)		21,435
	2,395	World Wrestling Entertainment, Inc., Class A(c)		32,141
				13,296,221
		Consumer Staples—3.0%
	21,440	Alliance One International, Inc.(b)		28,301
	2,537	Cal-Maine Foods, Inc.(c)		113,429
	15,150	Central Garden & Pet Co., Class A(b)		148,470
	672	Coca-Cola Bottling Co. Consolidated		75,936
	3,185	Elizabeth Arden, Inc.(b)(c)		44,813
	7,161	Fresh Del Monte Produce, Inc.		264,456
	4,858	Ingles Markets, Inc., Class A		203,356
	1,295	John B. Sanfilippo & Son, Inc.		67,353
	1,318	National Beverage Corp.(b)		29,457
	887	Nutraceutical International Corp.(b)		17,296
	425	Oil-Dri Corp. of America		13,949
	2,610	Omega Protein Corp.(b)		33,356
	3,599	Pilgrim’s Pride Corp.(c)		88,895
	3,203	Post Holdings, Inc., Class A(b)		150,349
	1,066	Revlon, Inc., Class A(b)		41,691
	19,183	Roundy’s, Inc.(b)		96,682
	1,377	Seneca Foods Corp., Class A(b)		39,685
	5,616	SpartanNash Co.		169,435
	4,433	Universal Corp.		208,484
	8,226	Vector Group Ltd.		182,206
	1,088	Village Super Market, Inc., Class A		34,740

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Staples (continued)
	730	WD-40 Co.	$	59,101
	1,747	Weis Markets, Inc.		77,479
				2,188,919
		Energy—2.4%
	4,021	Abraxas Petroleum Corp.(b)		15,280
	548	Adams Resources & Energy, Inc.		25,537
	5,759	Alon USA Energy, Inc.		92,662
	5,719	Basic Energy Services, Inc.(b)		58,277
	7,872	Bill Barrett Corp.(b)		91,315
	4,950	Callon Petroleum Co.(b)		44,253
	11,429	Cloud Peak Energy, Inc.(b)		74,174
	6,399	Comstock Resources, Inc.(c)		34,363
	2,166	CVR Energy, Inc.		86,727
	3,441	EP Energy Corp., Class A(b)(c)		50,824
	17,198	EXCO Resources, Inc.(c)		35,428
	1,654	Gulf Island Fabrication, Inc.		21,816
	5,316	Harvest Natural Resources, Inc.(b)		3,403
	10,286	Helix Energy Solutions Group, Inc.(b)		169,513
	30,251	Hercules Offshore, Inc.(b)(c)		24,355
	3,102	Hornbeck Offshore Services, Inc.(b)		70,881
	16,296	ION Geophysical Corp.(b)		37,155
	23,685	Key Energy Services, Inc.(b)		57,791
	1,568	Mitcham Industries, Inc.(b)		7,683
	8,496	Newpark Resources, Inc.(b)		87,169
	16,197	Parker Drilling Co.(b)		60,739
	8,056	Penn Virginia Corp.(b)(c)		53,814
	8,102	PetroQuest Energy, Inc.(b)		21,713
	1,308	PHI, Inc.(b)		40,980
	10,429	Pioneer Energy Services Corp.(b)		77,696
	5,200	Stone Energy Corp.(b)		88,764
	12,904	Swift Energy Co.(b)(c)		38,970
	2,803	Tesco Corp.		36,047
	10,334	TETRA Technologies, Inc.(b)		74,611
	4,472	Ultra Petroleum Corp.(b)(c)		76,158
	6,015	VAALCO Energy, Inc.(b)		14,857
	6,166	W&T Offshore, Inc.(c)		39,647
	7,265	Warren Resources, Inc.(b)		7,846
	9,399	Willbros Group, Inc.(b)		23,498
				1,743,946
		Financials—25.3%
	1,256	1st Source Corp.		39,087
	6,928	AG Mortgage Investment Trust, Inc. REIT		133,156
	2,332	Alexander & Baldwin, Inc.		94,399
	930	American National Bankshares, Inc.		20,934
	1,240	American Residential Properties, Inc. REIT(b)		23,262
	1,241	Ameris Bancorp		31,013
	1,227	AMERISAFE, Inc.		55,448
	845	Ames National Corp.		21,074
	35,513	Anworth Mortgage Asset Corp. REIT		180,406
	3,641	Arbor Realty Trust, Inc. REIT		24,977
	1,142	Armada Hoffler Properties, Inc. REIT		11,728
	1,346	Arrow Financial Corp.		35,077
	12,287	Ashford Hospitality Trust, Inc. REIT		111,320
	140	Ashford, Inc.(b)		13,965
	13,486	Astoria Financial Corp.		177,611

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

65

PowerShares Fundamental Pure Small Value Portfolio (PXSV) (continued)

April 30, 2015

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	1,397	Baldwin & Lyons, Inc., Class B	$	31,698
	541	BancFirst Corp.		31,227
	7,854	BancorpSouth, Inc.		190,145
	4,779	Bank Mutual Corp.		34,361
	4,313	Bank of Hawaii Corp.		260,462
	1,820	BankFinancial Corp.		23,296
	1,267	Banner Corp.		57,294
	584	Bar Harbor Bankshares		20,563
	714	BBX Capital Corp., Class A(b)(c)		13,088
	2,388	Beneficial Bancorp, Inc.(b)		27,701
	1,080	Blackstone Mortgage Trust, Inc., Class A REIT		33,188
	2,084	BOK Financial Corp.		135,856
	4,739	Boston Private Financial Holdings, Inc.		62,318
	2,493	Brixmor Property Group, Inc. REIT		58,461
	9,436	Brookline Bancorp, Inc.		101,626
	4,673	Calamos Asset Management, Inc., Class A		57,805
	1,007	Camden National Corp.		38,588
	1,708	Capital City Bank Group, Inc.		24,032
	22,132	Capitol Federal Financial, Inc.		265,584
	16,973	Capstead Mortgage Corp. REIT		197,735
	3,537	Cash America International, Inc.		91,679
	5,157	Cathay General Bancorp		147,387
	9,132	Cedar Realty Trust, Inc. REIT		63,833
	1,905	Central Pacific Financial Corp.		43,624
	317	Century Bancorp, Inc., Class A		12,246
	2,024	Charter Financial Corp.		24,227
	3,027	Chemical Financial Corp.		93,534
	1,180	Citizens & Northern Corp.		23,411
	3,441	Citizens, Inc., Class A(b)(c)		19,407
	1,505	City Holding Co.		69,185
	3,554	City National Corp.		331,233
	2,687	CNA Financial Corp.		108,286
	2,277	CoBiz Financial, Inc.		27,347
	1,242	Cohen & Steers, Inc.		47,022
	1,542	Community Trust Bancorp, Inc.		49,467
	2,627	Consumer Portfolio Services, Inc.(b)		16,787
	9,379	Corporate Office Properties Trust REIT		247,512
	8,272	Cousins Properties, Inc. REIT		80,569
	3,738	Crawford & Co., Class B		30,539
	7,214	CVB Financial Corp.		112,899
	6,267	DCT Industrial Trust, Inc. REIT		207,062
	16,504	DiamondRock Hospitality Co. REIT		223,794
	3,273	Dime Community Bancshares, Inc.		52,106
	1,262	Donegal Group, Inc., Class A		19,069
	9,072	Douglas Emmett, Inc. REIT		258,552
	728	EMC Insurance Group, Inc.		25,218
	3,013	Employers Holdings, Inc.		73,547
	3,225	Enova International, Inc.(b)		59,695
	636	Enterprise Bancorp, Inc.		13,649
	1,513	Enterprise Financial Services Corp.		31,062
	4,009	EPR Properties REIT		231,199
	17,053	F.N.B. Corp.		226,293
	1,481	FBL Financial Group, Inc., Class A		86,298
	833	FBR & Co.(b)		17,876
	1,055	Federal Agricultural Mortgage Corp., Class C		33,169
	6,399	FelCor Lodging Trust, Inc. REIT		71,093

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	1,375	Financial Institutions, Inc.	$	32,381
	762	First Bancorp, Inc.		12,710
	2,082	First Bancorp/Southern Pines NC		33,791
	8,285	First Busey Corp.		51,698
	546	First Citizens BancShares, Inc., Class A		131,226
	11,294	First Commonwealth Financial Corp.		101,872
	1,937	First Community Bancshares, Inc.		32,464
	1,015	First Defiance Financial Corp.		35,525
	1,225	First Financial Corp.		41,589
	1,116	First Financial Northwest, Inc.		13,280
	1,818	First Interstate BancSystem, Inc., Class A		49,195
	2,500	First Merchants Corp.		56,425
	6,315	First Midwest Bancorp, Inc.		107,986
	6,668	First Potomac Realty Trust REIT		71,481
	12,511	FirstMerit Corp.		242,338
	2,319	Flagstar Bancorp, Inc.(b)		39,840
	2,920	Flushing Financial Corp.		55,947
	6,878	Forest City Enterprises, Inc., Class A(b)		163,421
	2,475	Forestar Group, Inc.(b)		36,531
	8,767	Franklin Street Properties Corp. REIT		103,538
	443	FRP Holdings, Inc.(b)		15,381
	21,015	Fulton Financial Corp.		255,542
	2,779	FXCM, Inc., Class A(c)		5,586
	291	GAMCO Investors, Inc., Class A		22,497
	327	Gaming and Leisure Properties, Inc. REIT		11,674
	2,777	Getty Realty Corp. REIT		48,236
	5,260	Glacier Bancorp, Inc.		138,548
	1,488	Gramercy Property Trust, Inc. REIT		40,682
	1,359	Great Southern Bancorp, Inc.		53,572
	2,018	Greenhill & Co., Inc.		79,812
	1,009	Guaranty Bancorp		15,882
	2,647	Hallmark Financial Services, Inc.(b)		29,329
	1,623	Hanmi Financial Corp.		34,537
	1,548	Heartland Financial USA, Inc.		53,267
	1,278	HomeTrust Bancshares, Inc.(b)		19,988
	4,860	Horace Mann Educators Corp.		165,094
	819	Horizon Bancorp		19,124
	1,816	Hudson Valley Holding Corp.		44,928
	556	Independence Holding Co.		6,917
	1,189	Independent Bank Corp.		15,742
	1,275	Infinity Property & Casualty Corp.		94,541
	8,440	Inland Real Estate Corp. REIT		86,848
	11,302	Interactive Brokers Group, Inc., Class A		383,703
	6,897	International Bancshares Corp.		179,184
	5,123	Investment Technology Group, Inc.(b)		145,954
	12,581	Investors Real Estate Trust REIT		90,206
	7,171	iStar Financial, Inc. REIT(b)		97,095
	13,245	Janus Capital Group, Inc.		237,085
	593	Kansas City Life Insurance Co.		26,614
	2,161	Kite Realty Group Trust REIT		56,618
	3,220	Lakeland Bancorp, Inc.		36,547
	3,839	Lamar Advertising Co., Class A REIT		222,508
	675	LCNB Corp.		10,611
	16,057	Lexington Realty Trust REIT		148,848
	2,070	MainSource Financial Group, Inc.		39,847
	548	Marlin Business Services Corp.		10,944

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

66

PowerShares Fundamental Pure Small Value Portfolio (PXSV) (continued)

April 30, 2015

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	4,423	MB Financial, Inc.	$	133,265
	10,947	Meadowbrook Insurance Group, Inc.		93,487
	647	Mercantile Bank Corp.		12,824
	549	Merchants Bancshares, Inc.		16,174
	4,358	Mercury General Corp.		239,429
	1,274	Metro Bancorp, Inc.		32,665
	6,889	MGIC Investment Corp.(b)		71,783
	606	National Bankshares, Inc.		17,580
	742	National Interstate Corp.		20,791
	314	National Western Life Insurance Co., Class A		75,238
	1,412	Navigators Group, Inc. (The)(b)		110,207
	4,187	NBT Bancorp, Inc.		101,116
	2,510	Nelnet, Inc., Class A		112,373
	4,966	New Senior Investment Group, Inc. REIT		80,251
	4,919	Newcastle Investment Corp. REIT		26,218
	649	Northrim BanCorp, Inc.		16,173
	9,335	Northwest Bancshares, Inc.		114,914
	1,536	OceanFirst Financial Corp.		25,774
	10,665	Old National Bancorp		145,684
	1,211	One Liberty Properties, Inc. REIT		27,223
	5,621	OneBeacon Insurance Group Ltd., Class A		84,765
	1,923	Oppenheimer Holdings, Inc., Class A		45,940
	1,437	Pacific Continental Corp.		18,537
	7,302	PacWest Bancorp		329,320
	1,559	Park National Corp.		128,711
	737	Peapack Gladstone Financial Corp.		15,425
	385	Penns Woods Bancorp, Inc.		16,782
	6,757	Pennsylvania Real Estate Investment Trust REIT		152,776
	1,271	Peoples Bancorp, Inc.		29,474
	2,955	Phoenix Cos., Inc. (The)(b)		100,795
	1,902	Piper Jaffray Cos.(b)		95,956
	3,660	Potlatch Corp. REIT		135,091
	590	Preferred Bank		16,626
	5,542	Primerica, Inc.		256,151
	753	Provident Financial Holdings, Inc.		12,462
	6,315	Provident Financial Services, Inc.		113,670
	10,033	RAIT Financial Trust REIT		65,014
	4,397	Ramco-Gershenson Properties Trust REIT		76,860
	10,562	Redwood Trust, Inc. REIT		181,561
	2,247	Renasant Corp.		66,758
	1,440	Republic Bancorp, Inc., Class A		34,243
	1,420	Resource America, Inc., Class A		12,127
	4,700	RLI Corp.		233,402
	2,899	Ryman Hospitality Properties, Inc. REIT		167,098
	3,501	S&T Bancorp, Inc.		94,177
	4,064	Sabra Health Care REIT, Inc. REIT		121,432
	1,834	Safety Insurance Group, Inc.		106,647
	2,293	Sandy Spring Bancorp, Inc.		59,756
	7,124	Selective Insurance Group, Inc.		191,921
	1,189	Sierra Bancorp		19,476
	2,618	Silver Bay Realty Trust Corp. REIT		40,500
	1,408	Simmons First National Corp., Class A		61,600
	1,480	Southwest Bancorp, Inc.		25,500
	1,969	Springleaf Holdings, Inc.(b)		98,450
	1,406	St. Joe Co. (The)(b)		24,535

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	1,896	State Auto Financial Corp.	$	44,784
	2,448	State Bank Financial Corp.		48,984
	2,186	Stewart Information Services Corp.		79,789
	1,152	Stock Yards Bancorp, Inc.		40,090
	7,552	Strategic Hotels & Resorts, Inc. REIT(b)		88,358
	1,212	Suffolk Bancorp		29,040
	968	Sun Bancorp, Inc.(b)		18,324
	9,796	Sunstone Hotel Investors, Inc. REIT		152,622
	23,654	Susquehanna Bancshares, Inc.		317,910
	2,987	TowneBank		49,435
	1,205	TriCo Bancshares		28,101
	10,498	TrustCo Bank Corp. NY		70,022
	8,077	Trustmark Corp.		192,233
	13,751	Umpqua Holdings Corp.		233,905
	5,188	United Bankshares, Inc.		194,965
	2,419	United Community Banks, Inc.		45,018
	4,613	United Community Financial Corp.		24,864
	1,866	United Fire Group, Inc.		55,737
	3,410	Universal Insurance Holdings, Inc.		81,908
	2,211	Univest Corp. of Pennsylvania		43,137
	2,132	Urstadt Biddle Properties, Inc., Class A REIT		44,239
	7,961	Washington Real Estate Investment Trust REIT		196,796
	9,822	Washington Federal, Inc.		212,155
	1,216	Washington Trust Bancorp, Inc.		45,016
	7,191	Webster Financial Corp.		257,654
	3,682	WesBanco, Inc.		116,020
	1,211	West Bancorporation, Inc.		22,961
	2,296	Westamerica Bancorporation		99,991
	2,075	Western Asset Mortgage Capital Corp. REIT(c)		30,316
	3,134	Westfield Financial, Inc.		24,288
	375	White Mountains Insurance Group Ltd.		253,489
	3,454	Wilshire Bancorp, Inc.		36,440
	751	World Acceptance Corp.(b)(c)		63,550
	782	Yadkin Financial Corp.(b)		15,390
				18,229,328
		Health Care—4.3%
	5,483	Affymetrix, Inc.(b)		66,509
	1,587	Albany Molecular Research, Inc.(b)		28,661
	984	Alliance HealthCare Services, Inc.(b)		20,930
	8,252	Amedisys, Inc.(b)		229,488
	4,588	AMN Healthcare Services, Inc.(b)		104,652
	3,351	Amsurg Corp.(b)		210,175
	8,775	BioScrip, Inc.(b)(c)		41,242
	9,782	Brookdale Senior Living, Inc.(b)		354,402
	1,542	Cambrex Corp.(b)		59,352
	2,719	Charles River Laboratories International, Inc.(b)		188,046
	3,656	Cross Country Healthcare, Inc.(b)		40,582
	12,204	Five Star Quality Care, Inc.(b)		51,867
	5,741	Genesis Healthcare, Inc., Class A(b)		39,670
	5,608	Healthways, Inc.(b)		97,579
	4,879	Hill-Rom Holdings, Inc.		243,657
	5,115	Invacare Corp.		102,658
	1,748	LHC Group, Inc.(b)		56,041
	4,137	Magellan Health, Inc.(b)		261,872
	5,047	Molina Healthcare, Inc.(b)		298,934
	1,126	National Healthcare Corp.		71,276

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

67

PowerShares Fundamental Pure Small Value Portfolio (PXSV) (continued)

April 30, 2015

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Health Care (continued)
	2,096	OraSure Technologies, Inc.(b)	$	13,205
	21,559	PDL BioPharma, Inc.(c)		143,799
	5,381	PharMerica Corp.(b)		154,219
	1,750	Providence Service Corp. (The)(b)		74,410
	806	Surgical Care Affiliates, Inc.(b)		30,386
	732	SurModics, Inc.(b)		18,461
	1,195	Symmetry Surgical, Inc.(b)		9,237
	9,926	Universal American Corp.(b)		99,161
				3,110,471
		Industrials—19.6%
	5,019	AAR Corp.		151,775
	7,752	ABM Industries, Inc.		248,452
	23,976	ACCO Brands Corp.(b)		188,691
	11,219	Accuride Corp.(b)		45,774
	2,649	Aerojet Rocketdyne Holdings, Inc.(b)		52,079
	1,077	Aerovironment, Inc.(b)		27,571
	8,792	Air Transport Services Group, Inc.(b)		81,941
	8,724	Aircastle Ltd.		209,202
	2,383	Albany International Corp., Class A		93,414
	642	American Science & Engineering, Inc.		24,024
	760	American Woodmark Corp.(b)		38,532
	1,824	Apogee Enterprises, Inc.		95,979
	3,170	Applied Industrial Technologies, Inc.		132,411
	5,664	ARC Document Solutions, Inc.(b)		48,371
	2,892	ArcBest Corp.		103,244
	1,724	Astec Industries, Inc.		72,546
	6,003	Atlas Air Worldwide Holdings, Inc.(b)		292,586
	3,610	Baltic Trading Ltd.		5,126
	3,300	Barnes Group, Inc.		132,330
	6,012	Brady Corp., Class A		160,100
	7,326	Briggs & Stratton Corp.		143,223
	7,101	Brink’s Co. (The)		187,963
	2,275	Builders FirstSource, Inc.(b)		29,029
	6,865	Casella Waste Systems, Inc., Class A(b)		37,620
	6,797	CBIZ, Inc.(b)		61,445
	2,924	CDI Corp.		39,883
	27,115	Cenveo, Inc.(b)		53,688
	1,922	Columbus McKinnon Corp.		48,742
	4,436	Comfort Systems USA, Inc.		91,781
	4,247	Commercial Vehicle Group, Inc.(b)		24,463
	2,018	Courier Corp.		48,997
	15,266	Covanta Holding Corp.		309,747
	1,541	CRA International, Inc.(b)		44,997
	3,146	Crane Co.		192,252
	4,402	Deluxe Corp.		285,029
	2,427	Douglas Dynamics, Inc.		52,787
	1,509	Ducommun, Inc.(b)		45,874
	2,634	Dun & Bradstreet Corp. (The)		336,283
	3,921	Dycom Industries, Inc.(b)		180,288
	956	Dynamic Materials Corp.		12,801
	1,174	Encore Wire Corp.		52,842
	3,088	Engility Holdings, Inc.		86,063
	4,413	Ennis, Inc.		67,872
	1,387	EnPro Industries, Inc.		88,782
	4,046	Federal Signal Corp.		63,603
	568	Franklin Covey Co.(b)		10,588

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrials (continued)
	1,276	FreightCar America, Inc.	$	33,291
	5,487	FTI Consulting, Inc.(b)		225,571
	2,072	Furmanite Corp.(b)		15,126
	1,802	G&K Services, Inc., Class A		127,221
	4,455	GATX Corp.		242,352
	3,320	Gibraltar Industries, Inc.(b)		54,979
	4,720	Global Brass & Copper Holdings, Inc.		71,933
	15,933	GrafTech International Ltd.(b)		77,116
	4,455	Granite Construction, Inc.		154,633
	6,933	Great Lakes Dredge & Dock Corp.(b)		40,211
	1,999	Greenbrier Cos., Inc. (The)(c)		115,322
	3,671	H&E Equipment Services, Inc.		90,747
	1,340	Hardinge, Inc.		14,418
	11,001	Hawaiian Holdings, Inc.(b)		253,903
	3,633	Heartland Express, Inc.		76,002
	2,528	Heidrick & Struggles International, Inc.		60,824
	3,981	Herman Miller, Inc.		109,119
	3,654	Hill International, Inc.(b)		14,068
	4,337	HNI Corp.		202,278
	2,260	Houston Wire & Cable Co.		21,334
	784	Hurco Cos., Inc.		25,370
	2,343	ICF International, Inc.(b)		90,205
	3,584	Insperity, Inc.		172,605
	1,338	Insteel Industries, Inc.		27,108
	3,329	Interface, Inc.		72,339
	1,221	International Shipholding Corp.		13,407
	2,032	John Bean Technologies Corp.		78,415
	1,029	Kadant, Inc.		52,438
	2,622	Kaman Corp.		109,364
	7,039	Kelly Services, Inc., Class A		115,580
	2,257	Kforce, Inc.		51,324
	3,309	Kimball International, Inc., Class B		33,487
	4,748	Knight Transportation, Inc.		137,217
	4,991	Knoll, Inc.		113,645
	4,042	Korn/Ferry International		127,444
	5,002	Layne Christensen Co.(b)(c)		33,613
	869	LB Foster Co., Class A		37,132
	2,296	Lennox International, Inc.		243,284
	1,808	LMI Aerospace, Inc.(b)		20,412
	3,358	LSI Industries, Inc.		30,088
	1,578	Lydall, Inc.(b)		42,354
	2,536	Macquarie Infrastructure Co. LLC		209,879
	8,286	Manitowoc Co., Inc. (The)		163,483
	1,250	Masonite International Corp.(b)		82,750
	6,561	Matson, Inc.		265,720
	2,436	Matthews International Corp., Class A		118,219
	2,198	McGrath RentCorp		72,776
	15,976	Meritor, Inc.(b)		209,605
	1,363	Miller Industries, Inc.		30,504
	2,291	MSA Safety, Inc.		104,790
	4,639	Mueller Industries, Inc.		162,551
	10,328	Mueller Water Products, Inc., Class A		96,670
	1,170	National Presto Industries, Inc.(c)		73,219
	5,626	Navigant Consulting, Inc.(b)		81,352
	1,419	NCI Building Systems, Inc.(b)		21,966
	1,324	NN, Inc.		33,312

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

68

PowerShares Fundamental Pure Small Value Portfolio (PXSV) (continued)

April 30, 2015

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrials (continued)
	1,122	Nortek, Inc.(b)	$	94,944
	1,158	Northwest Pipe Co.(b)		28,070
	3,213	Orion Marine Group, Inc.(b)		27,053
	662	P.A.M. Transportation Services, Inc.(b)		38,787
	952	Park-Ohio Holdings Corp.		44,106
	147	Patriot Transportation Holding, Inc.(b)		3,794
	1,287	PGT, Inc.(b)		14,569
	1,654	Ply Gem Holdings, Inc.(b)		22,461
	3,427	Polypore International, Inc.(b)		200,685
	327	Preformed Line Products Co.		13,718
	7,788	Quad Graphics, Inc., Class A		167,754
	3,281	Quality Distribution, Inc.(b)		32,548
	3,244	Quanex Building Products Corp.		62,609
	25,816	Republic Airways Holdings, Inc.(b)		315,988
	3,739	Resources Connection, Inc.		58,927
	3,016	Rexnord Corp.(b)		79,894
	5,192	Rush Enterprises, Inc., Class A(b)		135,719
	2,303	Saia, Inc.(b)		93,847
	2,687	Simpson Manufacturing Co., Inc.		88,080
	21,391	SkyWest, Inc.		291,987
	939	Standex International Corp.		75,937
	14,575	Steelcase, Inc., Class A		256,083
	2,524	Sterling Construction Co., Inc.(b)		11,080
	1,601	TRC Cos., Inc.(b)		11,959
	2,823	TriMas Corp.(b)		79,524
	3,413	TrueBlue, Inc.(b)		98,226
	10,917	Tutor Perini Corp.(b)		231,440
	1,159	Twin Disc, Inc.		20,850
	6,159	United Stationers, Inc.		250,117
	1,896	Universal Forest Products, Inc.		104,887
	4,208	USG Corp.(b)		111,680
	12,350	UTi Worldwide, Inc.(b)		111,520
	2,696	Viad Corp.		71,633
	1,257	Vicor Corp.(b)		19,169
	801	VSE Corp.		56,983
	1,925	Watts Water Technologies, Inc., Class A		105,009
	7,547	Werner Enterprises, Inc.		202,788
	3,749	West Corp.		116,032
	928	Willis Lease Finance Corp.(b)		17,632
	2,285	Xerium Technologies, Inc.(b)		40,627
	11,240	YRC Worldwide, Inc.(b)		175,344
				14,138,925
		Information Technology—12.8%
	3,115	Acxiom Corp.(b)		54,388
	4,125	ADTRAN, Inc.		68,516
	1,810	Advanced Energy Industries, Inc.(b)		44,273
	1,503	Agilysys, Inc.(b)		14,143
	2,603	Alpha & Omega Semiconductor Ltd.(b)		21,319
	1,897	American Software, Inc., Class A		18,420
	34,616	Amkor Technology, Inc.(b)		243,351
	6,707	ANADIGICS, Inc.(b)		8,853
	1,348	Applied Micro Circuits Corp.(b)		7,239
	23,197	Atmel Corp.		175,833
	5,253	AVX Corp.		72,334
	10,246	Axcelis Technologies, Inc.(b)		25,820
	1,263	Bel Fuse, Inc., Class B		25,929

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	2,066	Belden, Inc.	$	173,441
	8,815	Benchmark Electronics, Inc.(b)		207,417
	2,932	Black Box Corp.		58,347
	5,562	Brooks Automation, Inc.		59,847
	3,244	Cabot Microelectronics Corp.(b)		153,441
	9,241	Cadence Design Systems, Inc.(b)		172,345
	6,941	CDW Corp.		265,979
	5,514	Checkpoint Systems, Inc.		57,125
	15,617	Ciber, Inc.(b)		55,128
	3,086	Cohu, Inc.		32,310
	4,213	CommScope Holding Co., Inc.(b)		124,326
	2,369	Comtech Telecommunications Corp.		68,464
	8,800	Convergys Corp.		199,584
	2,048	Covisint Corp.(b)		4,014
	2,277	CTS Corp.		40,849
	23,803	Cypress Semiconductor Corp.(b)		317,056
	3,198	Daktronics, Inc.		34,315
	3,401	DHI Group, Inc.(b)		25,848
	7,292	Diebold, Inc.		253,543
	3,156	Digi International, Inc.(b)		31,876
	3,030	Diodes, Inc.(b)		80,962
	2,194	Dot Hill Systems Corp.(b)		13,778
	3,324	DSP Group, Inc.(b)		37,827
	35,900	EarthLink Holdings Corp.		169,807
	3,095	Eastman Kodak Co.(b)		59,950
	2,416	Electro Rent Corp.		26,189
	3,516	Electro Scientific Industries, Inc.		20,041
	9,838	Emulex Corp.(b)		78,901
	8,182	Entegris, Inc.(b)		108,902
	622	ePlus, Inc.(b)		51,601
	2,984	Euronet Worldwide, Inc.(b)		174,504
	1,548	Fair Isaac Corp.		136,936
	16,288	Fairchild Semiconductor International, Inc.(b)		295,872
	4,599	FormFactor, Inc.(b)		36,654
	5,725	Freescale Semiconductor Ltd.(b)		223,790
	7,146	Global Cash Access Holdings, Inc.(b)		52,880
	2,901	GSI Group, Inc.(b)		38,525
	1,487	GSI Technology, Inc.(b)		7,866
	2,698	Hackett Group, Inc. (The)		25,901
	10,036	Harmonic, Inc.(b)		70,352
	8,467	Imation Corp.(b)		34,630
	6,525	Integrated Device Technology, Inc.(b)		118,690
	2,737	Integrated Silicon Solution, Inc.		50,771
	3,831	Internap Corp.(b)		36,011
	15,589	Intersil Corp., Class A		208,113
	1,648	Intevac, Inc.(b)		7,976
	6,127	Itron, Inc.(b)		219,714
	2,087	IXYS Corp.		23,604
	10,733	Kemet Corp.(b)		46,367
	2,491	Kimball Electronics, Inc.(b)		31,860
	2,870	Kofax Ltd. (United Kingdom)(b)		31,656
	3,415	Kopin Corp.(b)		11,338
	3,616	Lionbridge Technologies, Inc.(b)		20,069
	1,484	Methode Electronics, Inc.		63,011
	3,489	Micrel, Inc.		47,450
	3,715	MKS Instruments, Inc.		129,319

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

69

PowerShares Fundamental Pure Small Value Portfolio (PXSV) (continued)

April 30, 2015

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	8,256	ModusLink Global Solutions, Inc.(b)	$	28,896
	17,211	Monster Worldwide, Inc.(b)		101,373
	1,758	Multi-Fineline Electronix, Inc.(b)		41,102
	1,377	NCI, Inc., Class A		14,045
	2,700	Newport Corp.(b)		51,489
	7,319	OmniVision Technologies, Inc.(b)		204,164
	2,132	Park Electrochemical Corp.		46,307
	2,803	Pericom Semiconductor Corp.		35,094
	10,603	Photronics, Inc.(b)		92,988
	4,040	Plexus Corp.(b)		173,922
	11,590	PMC - Sierra, Inc.(b)		97,704
	14,549	Polycom, Inc.(b)		189,864
	2,778	PRGX Global, Inc.(b)		11,779
	3,661	Progress Software Corp.(b)		96,650
	9,987	QLogic Corp.(b)		146,809
	4,411	Qorvo, Inc.(b)		290,729
	33,378	Quantum Corp.(b)		67,090
	4,998	QuinStreet, Inc.(b)		27,139
	3,656	RealNetworks, Inc.(b)		24,020
	1,254	Richardson Electronics Ltd.		11,136
	3,270	Rofin-Sinar Technologies, Inc.(b)		77,368
	2,364	Rudolph Technologies, Inc.(b)		30,330
	4,446	ScanSource, Inc.(b)		177,173
	3,769	Sigma Designs, Inc.(b)		30,114
	2,257	Silicon Graphics International Corp.(b)		18,304
	2,172	Sonus Networks, Inc.(b)		17,202
	4,785	Speed Commerce, Inc.(b)		1,444
	12,635	SunEdison, Inc.(b)		319,918
	4,955	Sykes Enterprises, Inc.(b)		124,024
	2,072	TeleTech Holdings, Inc.		53,748
	10,289	TTM Technologies, Inc.(b)		96,202
	2,015	Ultra Clean Holdings, Inc.(b)		12,110
	11,743	United Online, Inc.(b)		185,892
	1,962	VASCO Data Security International, Inc.(b)(c)		49,874
	519	Viasystems Group, Inc.(b)		9,228
	1,600	Vishay Precision Group, Inc.(b)		22,832
	1,460	WebMD Health Corp.(b)		64,459
	2,683	Xcerra Corp.(b)		26,374
	1,273	XO Group, Inc.(b)		20,699
	2,494	Zebra Technologies Corp., Class A(b)		229,648
				9,226,733
		Materials—6.7%
	3,817	A. Schulman, Inc.		162,032
	3,661	A.M. Castle & Co.(b)(c)		14,351
	1,019	AEP Industries, Inc.(b)		51,052
	39,369	AK Steel Holding Corp.(b)(c)		199,995
	1,761	Ampco-Pittsburgh Corp.		28,158
	3,995	Boise Cascade Co.(b)		138,626
	3,158	Carpenter Technology Corp.		136,583
	7,946	Century Aluminum Co.(b)		102,424
	8,668	Chemtura Corp.(b)		261,167
	19,746	Coeur Mining, Inc.(b)		103,074
	5,321	Cytec Industries, Inc.		294,198
	8,243	Ferro Corp.(b)		111,198
	4,407	Greif, Inc., Class A		179,629
	2,840	H.B. Fuller Co.		118,627

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Materials (continued)
	795	Handy & Harman Ltd.(b)	$	28,167
	1,027	Haynes International, Inc.		45,671
	3,926	Headwaters, Inc.(b)		69,019
	2,770	Horsehead Holding Corp.(b)		41,411
	1,979	Kaiser Aluminum Corp.		159,052
	2,706	Koppers Holdings, Inc.		60,831
	4,604	Kraton Performance Polymers, Inc.(b)		103,774
	2,734	Kronos Worldwide, Inc.		36,772
	2,563	Materion Corp.		102,494
	2,007	Minerals Technologies, Inc.		135,934
	3,006	Myers Industries, Inc.		48,607
	1,283	Neenah Paper, Inc.		77,583
	22,520	Noranda Aluminum Holding Corp.		75,217
	9,719	Olin Corp.		287,002
	1,727	Olympic Steel, Inc.		18,911
	5,435	OM Group, Inc.		163,267
	4,347	P.H. Glatfelter Co.		107,806
	2,839	RTI International Metals, Inc.(b)		106,888
	6,989	Schnitzer Steel Industries, Inc., Class A		121,748
	3,354	Scotts Miracle-Gro Co. (The), Class A		216,367
	3,878	Sensient Technologies Corp.		253,466
	4,049	Silgan Holdings, Inc.		218,120
	6,425	SunCoke Energy, Inc.		112,630
	48,745	Thompson Creek Metals Co., Inc.(b)		61,419
	2,597	Tredegar Corp.		53,161
	870	Universal Stainless & Alloy Products, Inc.(b)		18,270
	1,372	US Concrete, Inc.(b)		49,804
	20,523	Walter Energy, Inc.(c)		10,411
	5,061	Wausau Paper Corp.		47,169
	3,768	Worthington Industries, Inc.		101,849
				4,833,934
		Telecommunication Services—1.3%
	56,102	Cincinnati Bell, Inc.(b)		192,430
	7,046	Consolidated Communications Holdings, Inc.		148,459
	6,170	FairPoint Communications, Inc.(b)		121,672
	5,036	General Communication, Inc., Class A(b)		79,871
	1,300	Hawaiian Telcom Holdco, Inc.(b)		34,242
	26,440	Leap Wireless Corp.(b)		66,629
	1,711	Lumos Networks Corp.		24,194
	5,270	NTELOS Holdings Corp.		30,619
	5,066	Premiere Global Services, Inc.(b)		51,724
	5,787	Spok Holdings, Inc.		108,940
	2,514	United States Cellular Corp.(b)		92,842
				951,622
		Utilities—6.1%
	4,163	ALLETE, Inc.		209,399
	880	Artesian Resources Corp., Class A		18,955
	59,055	Atlantic Power Corp.		191,929
	8,073	Avista Corp.		263,341
	4,223	Black Hills Corp.		208,152
	4,119	California Water Service Group		98,321
	5,383	Cleco Corp.		292,566
	10,659	Dynegy, Inc.(b)		354,625
	3,861	El Paso Electric Co.		143,668
	6,238	Empire District Electric Co. (The)		147,030

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

70

PowerShares Fundamental Pure Small Value Portfolio (PXSV) (continued)

April 30, 2015

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Utilities (continued)
	1,113	Genie Energy Ltd., Class B(b)	$	15,849
	4,861	IDACORP, Inc.		293,264
	3,484	Laclede Group, Inc. (The)		180,924
	3,121	MGE Energy, Inc.		129,459
	1,659	Middlesex Water Co.		37,775
	10,819	New Jersey Resources Corp.		330,088
	3,975	Northwest Natural Gas Co.		185,632
	4,407	NorthWestern Corp.		229,561
	1,068	Ormat Technologies, Inc.		39,078
	4,521	Otter Tail Corp.		135,223
	8,147	Piedmont Natural Gas Co., Inc.		305,024
	10,691	PNM Resources, Inc.		296,996
	1,548	SJW Corp.		45,279
	2,775	South Jersey Industries, Inc.		146,381
	1,672	Unitil Corp.		57,182
				4,355,701
		Total Common Stocks and Other Equity Interests (Cost $62,811,783)		72,075,800
		Money Market Fund—0.2%
	114,897	Invesco Premier Portfolio—Institutional Class(d) (Cost $114,897)		114,897
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $62,926,680)—100.2%		72,190,697
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—2.1%
	1,549,647	Invesco Liquid Assets Portfolio—Institutional Class(d)(e) (Cost $1,549,647)		1,549,647
		Total Investments (Cost $64,476,327)—102.3%		73,740,344
		Other assets less liabilities—(2.3)%		(1,647,491	)
		Net Assets—100.0%	$	72,092,853

Investment Abbreviations:

REIT—Real Estate Investment Trust

Notes to Schedule of Investments:

^(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.

^(b)  Non-income producing security.

^(c)  All or a portion of this security was out on loan at April 30, 2015.

^(d)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated.

^(e)  The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2G. The following table presents the Fund’s gross and net amount of assets available for offset by the Fund as of April 30, 2015.

Counterparty	Gross Amount of Securities on Loan at Value		Cash Collateral Received for Securities Loaned*			Net Amount
Brown Brothers Harriman & Co.	$	1,495,845	$	(1,495,845	)	$	—

* Amount does not include excess collateral received, if any.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

71

Schedule of Investments^(a)

PowerShares Zacks Micro Cap Portfolio (PZI)

April 30, 2015

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—11.2%
	6,207	1-800-FLOWERS.COM, Inc., Class A(b)	$	65,608
	1,349	America’s Car-Mart, Inc.(b)		69,258
	2,574	Bassett Furniture Industries, Inc.		72,638
	178	Biglari Holdings, Inc.(b)		65,061
	3,746	Build-A-Bear Workshop, Inc.(b)		69,039
	1,859	Cato Corp. (The), Class A		73,133
	9,259	Chegg, Inc.(b)		68,794
	10,111	China Automotive Systems, Inc. (China)(b)		74,316
	15,176	China XD Plastics Co. Ltd. (China)(b)		87,869
	2,719	Citi Trends, Inc.(b)		61,939
	2,441	CSS Industries, Inc.		69,178
	6,058	Entercom Communications Corp., Class A(b)		71,969
	4,213	Eros International PLC, Class A(b)		74,528
	2,458	FTD Cos., Inc.(b)		70,151
	6,667	Fuel Systems Solutions, Inc.(b)		74,004
	9,437	Harte-Hanks, Inc.		64,077
	5,819	Hemisphere Media Group, Inc.(b)(c)		73,552
	3,864	Hooker Furniture Corp.		98,339
	10,761	JAKKS Pacific, Inc.(b)		71,776
	2,223	Johnson Outdoors, Inc., Class A		70,025
	3,099	Kirkland’s, Inc.(b)		73,570
	3,079	M/I Homes, Inc.(b)		69,462
	3,448	Marcus Corp. (The)		66,788
	2,777	MarineMax, Inc.(b)		61,316
	4,820	Nautilus, Inc.(b)		81,024
	7,651	Pep Boys-Manny, Moe & Jack (The)(b)		70,083
	5,473	Reading International, Inc., Class A(b)		72,900
	4,499	Regis Corp.(b)		74,324
	3,314	Remy International, Inc.		73,737
	3,400	Rocky Brands, Inc.		76,296
	12,247	Ruby Tuesday, Inc.(b)		89,158
	6,879	Sequential Brands Group, Inc.(b)		85,300
	2,500	Shoe Carnival, Inc.		65,275
	6,496	Skullcandy, Inc.(b)		70,222
	3,227	Speedway Motorsports, Inc.		73,898
	3,211	Stage Stores, Inc.		62,004
	3,888	Superior Industries International, Inc.		72,317
	6,023	Systemax, Inc.(b)		62,940
	4,703	Tilly’s, Inc., Class A(b)		62,738
	4,211	TravelCenters of America LLC(b)		72,345
	2,040	Unifi, Inc.(b)		71,992
	1,304	Universal Electronics, Inc.(b)		70,338
	8,036	VOXX International Corp., Class A(b)		76,583
	3,065	WCI Communities, Inc.(b)		71,261
	8,492	Zagg, Inc.(b)		70,738
				3,241,863
		Consumer Staples—3.0%
	7,439	Central Garden & Pet Co.(b)		68,848
	6,931	Central Garden & Pet Co., Class A(b)		67,924
	7,855	Cott Corp. (Canada)		68,417
	1,484	Ingles Markets, Inc., Class A		62,120
	1,708	John B. Sanfilippo & Son, Inc.		88,833
	5,276	Landec Corp.(b)		74,972
	5,468	MGP Ingredients, Inc.		76,771
	5,377	Omega Protein Corp.(b)		68,718
	2,463	Seneca Foods Corp., Class A(b)		70,984

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Staples (continued)
	2,327	SpartanNash Co.	$	70,206
	6,931	SunOpta, Inc. (Canada)(b)		71,666
	1,561	Universal Corp.		73,414
				862,873
		Energy—6.7%
	13,701	Advantage Oil & Gas Ltd. (Canada)(b)		84,809
	5,122	Aegean Marine Petroleum Network, Inc. (Greece)		77,855
	4,442	Alon USA Energy, Inc.		71,472
	3,808	ARC Logistics Partners LP		74,218
	7,309	Ardmore Shipping Corp. (Ireland)		87,927
	9,830	Callon Petroleum Co.(b)		87,880
	3,826	CSI Compressco LP		81,111
	10,545	DHT Holdings, Inc.		84,360
	2,578	Green Plains, Inc.		80,279
	4,953	Gulf Island Fabrication, Inc.		65,330
	6,296	Hallador Energy Co.		72,341
	3,018	KNOT Offshore Partners LP (United Kingdom)(c)		72,432
	3,329	Marlin Midstream Partners LP		72,472
	5,318	Midcoast Energy Partners LP		73,016
	20,793	Navios Maritime Acquisition Corp.		79,221
	6,166	Nordic American Tankers Ltd.		75,410
	2,447	PHI, Inc.(b)		76,665
	7,983	Renewable Energy Group, Inc.(b)		73,524
	1,210	REX American Resources Corp.(b)		76,496
	5,258	Southcross Energy Partners LP		80,500
	2,849	Sprague Resources LP		73,105
	11,238	StealthGas, Inc. (Greece)(b)		74,283
	12,794	Teekay Tankers Ltd., Class A		80,602
	8,975	Tsakos Energy Navigation Ltd.		82,391
	3,596	USA Compression Partners LP		83,104
				1,940,803
		Financials—44.7%
	3,907	AG Mortgage Investment Trust, Inc. REIT		75,093
	2,227	Agree Realty Corp. REIT		68,547
	4,098	American Capital Mortgage Investment Corp. REIT		71,879
	4,091	American Residential Properties, Inc. REIT(b)		76,747
	2,783	Ameris Bancorp		69,547
	14,461	Anworth Mortgage Asset Corp. REIT		73,462
	4,273	Apollo Commercial Real Estate Finance, Inc. REIT		73,026
	4,615	Apollo Residential Mortgage, Inc. REIT		73,194
	10,545	Arbor Realty Trust, Inc. REIT		72,339
	6,661	Ares Commercial Real Estate Corp. REIT		75,602
	3,059	Arlington Asset Investment Corp., Class A		66,319
	6,905	Armada Hoffler Properties, Inc. REIT		70,914
	4,389	Ashford Hospitality Prime, Inc. REIT		68,732
	4,166	Atlas Financial Holdings, Inc. (Canada)(b)		76,863
	5,963	Banc of California, Inc.		73,941
	1,207	BancFirst Corp.		69,668
	10,055	Bank Mutual Corp.		72,295
	1,446	Bank of Marin Bancorp		72,907
	5,586	BankFinancial Corp.		71,501
	1,599	Banner Corp.		72,307

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

72

PowerShares Zacks Micro Cap Portfolio (PZI) (continued)

April 30, 2015

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	6,520	Beneficial Bancorp, Inc.(b)	$	75,632
	2,650	Berkshire Hills Bancorp, Inc.		74,226
	4,252	Blue Capital Reinsurance Holdings Ltd. (Bermuda)		75,516
	7,324	Brookline Bancorp, Inc.		78,879
	3,713	BSB Bancorp, Inc.(b)		78,493
	5,473	Calamos Asset Management, Inc., Class A		67,701
	1,848	Camden National Corp.		70,815
	10,280	Campus Crest Communities, Inc. REIT		65,072
	4,519	Capital City Bank Group, Inc.		63,582
	3,684	Cardinal Financial Corp.		76,001
	6,280	CatchMark Timber Trust, Inc., Class A REIT		72,848
	9,827	Cedar Realty Trust, Inc. REIT		68,691
	6,180	Centerstate Banks, Inc.		75,149
	3,197	Central Pacific Financial Corp.		73,211
	1,854	Century Bancorp, Inc., Class A		71,620
	6,400	Charter Financial Corp.		76,608
	2,503	Chatham Lodging Trust REIT		69,183
	2,341	Chemical Financial Corp.		72,337
	4,175	Cherry Hill Mortgage Investment Corp. REIT		73,438
	1,565	City Holding Co.		71,943
	2,220	Community Trust Bancorp, Inc.		71,218
	4,304	Compass Diversified Holdings		74,115
	3,773	ConnectOne Bancorp, Inc.		72,517
	10,621	CorEnergy Infrastructure Trust, Inc. REIT		72,117
	1,508	CoreSite Realty Corp. REIT		72,505
	14,158	Cowen Group, Inc., Class A(b)		79,143
	3,235	CU Bancorp(b)		67,029
	3,022	Customers Bancorp, Inc.(b)		76,185
	2,360	CyrusOne, Inc. REIT		76,653
	4,572	Dime Community Bancshares, Inc.		72,786
	4,682	Donegal Group, Inc., Class A		70,745
	8,690	Dynex Capital, Inc. REIT		69,520
	3,697	Ellington Financial LLC		74,384
	4,494	Ellington Residential Mortgage REIT		73,612
	2,178	EMC Insurance Group, Inc.		75,446
	2,727	Employers Holdings, Inc.		66,566
	3,464	Enterprise Bancorp, Inc.		74,337
	3,563	Enterprise Financial Services Corp.		73,148
	5,741	ESSA Bancorp, Inc.		73,772
	5,250	Excel Trust, Inc. REIT		83,212
	8,062	EZCORP, Inc., Class A(b)		74,170
	3,166	Farmers Capital Bank Corp.(b)		73,958
	8,987	Farmers National Banc Corp.		74,322
	3,185	FBR & Co.(b)		68,350
	2,611	Federal Agricultural Mortgage Corp., Class C		82,090
	2,405	Federated National Holding Co.		69,264
	4,361	Fidelity Southern Corp.		73,265
	4,218	First Bancorp, Inc.		70,356
	11,002	First Busey Corp.		68,652
	8,178	First Commonwealth Financial Corp.		73,766
	4,199	First Community Bancshares, Inc.		70,375
	2,243	First Defiance Financial Corp.		78,505
	4,133	First Financial Bancorp		71,336
	2,051	First Financial Corp.		69,631
	5,946	First Financial Northwest, Inc.		70,757

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	3,127	First Merchants Corp.	$	70,576
	6,191	First Potomac Realty Trust REIT		66,368
	6,911	Five Oaks Investment Corp. REIT		73,257
	3,667	Flushing Financial Corp.		70,260
	4,667	Forestar Group, Inc.(b)		68,885
	3,955	Gladstone Commercial Corp. REIT		70,439
	2,652	Global Indemnity PLC, Class A(b)		72,797
	1,869	Great Southern Bancorp, Inc.		73,676
	4,340	Guaranty Bancorp		68,312
	6,944	Hallmark Financial Services, Inc.(b)		76,940
	4,016	Hannon Armstrong Sustainable Infrastructure Capital, Inc. REIT		76,304
	2,256	Heartland Financial USA, Inc.		77,629
	8,062	Heritage Commerce Corp.		71,832
	4,330	Heritage Financial Corp.		73,177
	3,461	Home Bancorp, Inc.		74,931
	4,007	HomeStreet, Inc.(b)		82,865
	4,609	HomeTrust Bancshares, Inc.(b)		72,085
	3,147	Horizon Bancorp		73,482
	10,562	Imperial Holdings, Inc.(b)		70,554
	5,416	Independence Holding Co.		67,375
	7,756	Independence Realty Trust, Inc. REIT		71,355
	5,737	Independent Bank Corp./MI		75,958
	1,673	Independent Bank Corp./Rockland MA		69,798
	895	Infinity Property & Casualty Corp.		66,364
	2,476	INTL FCStone, Inc.(b)		79,480
	2,428	Investment Technology Group, Inc.(b)		69,174
	8,784	JMP Group, Inc.		67,637
	1,603	Kansas City Life Insurance Co.		71,943
	19,069	Ladenburg Thalmann Financial Services, Inc.(b)		64,263
	6,400	Lakeland Bancorp, Inc.		72,640
	1,814	Lakeland Financial Corp.		70,837
	4,952	Maiden Holdings Ltd.		71,953
	3,748	MainSource Financial Group, Inc.		72,149
	5,658	Manning & Napier, Inc., Class A		60,145
	5,590	Meridian Bancorp, Inc.(b)		71,831
	2,670	Metro Bancorp, Inc.		68,459
	2,553	MidWestOne Financial Group, Inc.		74,675
	6,625	Monmouth Real Estate Investment Corp. REIT		68,436
	3,913	National Bank Holdings Corp., Class A		74,347
	289	National Western Life Insurance Co., Class A		69,247
	943	Navigators Group, Inc. (The)(b)		73,601
	9,485	New York Mortgage Trust, Inc. REIT		74,078
	8,252	NewBridge Bancorp, Class A		66,429
	4,967	Northfield Bancorp, Inc.		71,674
	4,510	OFG Bancorp		63,546
	3,137	Oppenheimer Holdings, Inc., Class A		74,943
	5,559	Orchid Island Capital, Inc.		76,770
	5,059	Oritani Financial Corp.		75,379
	4,900	Owens Realty Mortgage, Inc. REIT		66,052
	10,141	Pacific Mercantile Bancorp(b)		72,914
	10,367	Park Sterling Corp.		69,459
	3,408	Peapack Gladstone Financial Corp.		71,329
	3,114	Peoples Bancorp, Inc.		72,214
	1,472	Phoenix Cos., Inc. (The)(b)		50,210
	4,169	Physicians Realty Trust REIT		69,205

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

73

PowerShares Zacks Micro Cap Portfolio (PZI) (continued)

April 30, 2015

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	1,403	Piper Jaffray Cos.(b)	$	70,781
	6,786	Preferred Apartment Communities, Inc., Class A REIT		75,053
	4,833	Premier Financial Bancorp, Inc.		71,963
	4,603	Provident Financial Holdings, Inc.		76,180
	2,016	QTS Realty Trust, Inc., Class A REIT		73,120
	10,730	RAIT Financial Trust REIT		69,530
	2,443	Renasant Corp.		72,582
	2,976	Republic Bancorp, Inc., Class A		70,769
	8,089	Resource America, Inc., Class A		69,080
	16,213	Resource Capital Corp. REIT		71,499
	4,656	Rexford Industrial Realty, Inc. REIT		69,188
	2,594	S&T Bancorp, Inc.		69,779
	1,232	Safety Insurance Group, Inc.		71,641
	2,806	Sandy Spring Bancorp, Inc.		73,124
	5,146	Seacoast Banking Corp. of Florida(b)		71,838
	4,555	Silver Bay Realty Trust Corp. REIT		70,466
	1,615	Simmons First National Corp., Class A		70,656
	2,694	Southside Bancshares, Inc.		73,600
	4,137	Southwest Bancorp, Inc.		71,280
	2,847	Starwood Waypoint Residential Trust REIT		73,282
	3,030	State Auto Financial Corp.		71,569
	3,506	State Bank Financial Corp.		70,155
	3,866	Steel Partners Holdings LP(b)		69,124
	1,806	Stewart Information Services Corp.		65,919
	3,098	Suffolk Bancorp		74,228
	5,218	Summit Hotel Properties, Inc. REIT		68,721
	4,806	Talmer Bancorp, Inc., Class A		73,916
	3,229	Terreno Realty Corp. REIT		68,713
	3,098	Territorial Bancorp, Inc.		71,564
	1,367	Tompkins Financial Corp.		71,289
	4,565	TowneBank		75,551
	3,050	TriCo Bancshares		71,126
	10,699	TrustCo Bank Corp. NY		71,362
	3,314	Union Bankshares Corp.		72,113
	3,899	United Community Banks, Inc.		72,560
	13,481	United Community Financial Corp.		72,663
	5,922	United Financial Bancorp, Inc.		75,505
	2,311	United Fire Group, Inc.		69,030
	3,262	United Insurance Holdings Corp.		54,247
	2,876	Universal Insurance Holdings, Inc.		69,082
	4,151	Walker & Dunlop, Inc.(b)		79,450
	4,558	Walter Investment Management Corp.(b)		80,266
	5,733	Waterstone Financial, Inc.		73,038
	2,259	WesBanco, Inc.		71,181
	4,881	Western Asset Mortgage Capital Corp. REIT		71,311
	4,635	Whitestone REIT		68,134
	4,499	Winthrop Realty Trust REIT		74,054
	973	WSFS Financial Corp.		69,248
	3,616	Yadkin Financial Corp.(b)		71,163
	4,115	ZAIS Financial Corp. REIT		70,943
				12,936,509
		Health Care—5.9%
	5,860	Affymetrix, Inc.(b)		71,082
	1,642	Almost Family, Inc.(b)		71,066

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Health Care (continued)
	2,749	Amedisys, Inc.(b)	$	76,450
	4,137	AngioDynamics, Inc.(b)		69,047
	5,559	Assembly Biosciences, Inc.(b)		74,046
	2,089	Bio-Reference Laboratories, Inc.(b)		69,188
	14,405	China Cord Blood Corp. (Hong Kong)(b)		90,752
	2,872	Exactech, Inc.(b)		62,753
	3,736	Healthways, Inc.(b)		65,006
	2,855	Heska Corp.(b)		80,197
	3,792	Invacare Corp.		76,105
	2,228	LHC Group, Inc.(b)		71,430
	3,824	Merit Medical Systems, Inc.(b)		74,224
	1,155	National Healthcare Corp.		73,111
	1,865	Natus Medical, Inc.(b)		70,329
	2,046	Orthofix International NV(b)		66,106
	6,866	Pernix Therapeutics Holdings, Inc.(b)		43,805
	2,611	PharMerica Corp.(b)		74,831
	1,382	Providence Service Corp. (The)(b)		58,763
	14,900	RTI Surgical, Inc.(b)		83,440
	8,308	SciClone Pharmaceuticals, Inc.(b)		67,876
	13,656	Synergetics USA, Inc.(b)		66,778
	3,703	Triple-S Management Corp., Class B(b)		69,320
	1,546	US Physical Therapy, Inc.		72,909
				1,698,614
		Industrials—11.7%
	8,857	ACCO Brands Corp.(b)		69,705
	7,985	Air Transport Services Group, Inc.(b)		74,420
	1,166	Alamo Group, Inc.		72,035
	1,345	American Woodmark Corp.(b)		68,191
	1,943	ArcBest Corp.		69,365
	1,713	Astec Industries, Inc.		72,083
	2,988	CAI International, Inc.(b)		71,174
	7,889	CBIZ, Inc.(b)		71,316
	2,704	Celadon Group, Inc.		69,871
	3,729	China Yuchai International Ltd.		75,177
	3,498	Comfort Systems USA, Inc.		72,374
	2,214	Covenant Transportation Group, Inc., Class A(b)		67,461
	2,360	CRA International, Inc.(b)		68,912
	11,307	Danaos Corp. (Greece)(b)		68,068
	3,214	Douglas Dynamics, Inc.		69,904
	2,842	Ducommun, Inc.(b)		86,397
	2,700	Echo Global Logistics, Inc.(b)		78,030
	1,884	ESCO Technologies, Inc.		69,143
	2,342	FreightCar America, Inc.		61,103
	9,121	General Finance Corp.(b)		70,779
	5,576	Global Power Equipment Group, Inc.		67,748
	13,581	Global Ship Lease, Inc., Class A (United Kingdom)(b)		72,522
	4,212	Griffon Corp.		70,804
	6,722	HC2 Holdings, Inc.(b)		74,345
	2,995	Heidrick & Struggles International, Inc.		72,060
	2,235	Hurco Cos., Inc.		72,325
	1,802	ICF International, Inc.(b)		69,377
	1,399	Kadant, Inc.		71,293
	1,550	LB Foster Co., Class A		66,231
	3,874	LS Starrett Co. (The), Class A		73,219
	2,320	Lydall, Inc.(b)		62,269

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

74

PowerShares Zacks Micro Cap Portfolio (PZI) (continued)

April 30, 2015

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrials (continued)
	3,164	Marten Transport Ltd.	$	70,431
	3,004	Miller Industries, Inc.		67,229
	1,059	Multi-Color Corp.		66,484
	2,349	MYR Group, Inc.(b)		68,873
	8,308	Orion Marine Group, Inc.(b)		69,953
	1,283	P.A.M. Transportation Services, Inc.(b)		75,171
	5,353	Republic Airways Holdings, Inc.(b)		65,521
	4,206	Resources Connection, Inc.		66,287
	2,913	Roadrunner Transportation Systems, Inc.(b)		71,281
	5,026	SkyWest, Inc.		68,605
	1,722	SL Industries, Inc.(b)		71,515
	894	Standex International Corp.		72,298
	5,514	Titan Machinery, Inc.(b)(c)		80,780
	2,658	USA Truck, Inc.(b)		65,280
	2,639	Viad Corp.		70,118
	897	VSE Corp.		63,813
	3,962	Willis Lease Finance Corp.(b)		75,278
				3,386,618
		Information Technology—11.3%
	8,261	Alpha & Omega Semiconductor Ltd.(b)		67,658
	3,868	Bel Fuse, Inc., Class B		79,410
	3,517	Black Box Corp.		69,988
	6,329	Brooks Automation, Inc.		68,100
	8,773	Calix, Inc.(b)		64,832
	5,420	Cascade Microtech, Inc.(b)		71,869
	3,452	CEVA, Inc.(b)		71,456
	2,978	ChipMOS TECHNOLOGIES Bermuda Ltd. (Taiwan)		68,792
	6,728	Cohu, Inc.		70,442
	2,543	Comtech Telecommunications Corp.		73,493
	7,375	Digi International, Inc.(b)		74,487
	6,145	DSP Group, Inc.(b)		69,930
	2,161	DTS, Inc.(b)		77,472
	2,417	Ebix, Inc.		65,960
	13,530	EMCORE Corp.(b)		73,739
	4,105	Epiq Systems, Inc.		73,521
	845	ePlus, Inc.(b)		70,101
	3,876	Fabrinet (Thailand)(b)		70,194
	8,276	FormFactor, Inc.(b)		65,960
	9,933	Harmonic, Inc.(b)		69,630
	8,579	Identiv, Inc.(b)		83,474
	4,128	Inphi Corp.(b)		88,546
	5,974	IXYS Corp.		67,566
	18,682	Mattson Technology, Inc.(b)		63,706
	4,721	Mercury Systems, Inc.(b)		65,197
	4,029	Multi-Fineline Electronix, Inc.(b)		94,198
	5,368	Net 1 UEPS Technologies, Inc. (South Africa)(b)		73,381
	4,579	Orbotech Ltd. (Israel)(b)		82,193
	2,821	PC Connection, Inc.		68,522
	7,881	PCM, Inc.(b)		77,785
	4,758	Pericom Semiconductor Corp.		59,570
	8,659	Photronics, Inc.(b)		75,939
	11,702	Planar Systems, Inc.(b)		67,521
	10,937	RealNetworks, Inc.(b)		71,856
	3,038	Rofin-Sinar Technologies, Inc.(b)		71,879
	6,664	Rudolph Technologies, Inc.(b)		85,499

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	9,142	Sigma Designs, Inc.(b)	$	73,045
	2,955	Sykes Enterprises, Inc.(b)		73,964
	6,384	TechTarget, Inc.(b)		69,075
	19,223	TeleCommunication Systems, Inc., Class A(b)		59,976
	9,294	Telenav, Inc.(b)		77,698
	8,147	TTM Technologies, Inc.(b)		76,174
	4,621	United Online, Inc.(b)		73,150
	3,417	VASCO Data Security International, Inc.(b)(c)		86,860
	4,166	XO Group, Inc.(b)		67,739
				3,271,547
		Materials—2.9%
	24,701	Hecla Mining Co.		74,597
	6,373	Intrepid Potash, Inc.(b)		79,854
	2,754	KMG Chemicals, Inc.		80,637
	1,781	LSB Industries, Inc.(b)		75,532
	1,915	Materion Corp.		76,581
	4,792	Mercer International, Inc.(b)		68,526
	3,257	OCI Resources LP		78,168
	2,451	OM Group, Inc.		73,628
	14,604	Pretium Resources, Inc. (Canada)(b)		84,119
	23,002	Richmont Mines, Inc. (Canada)(b)		73,836
	5,055	Synalloy Corp.		74,662
				840,140
		Pharmaceuticals—0.0%
	27,615	Chelsea Therapeutics International Ltd.(b)		2,209
		Telecommunication Services—1.6%
	1,061	Atlantic Tele-Network, Inc.		70,047
	9,762	Boingo Wireless, Inc.(b)		80,634
	4,671	General Communication, Inc., Class A(b)		74,082
	2,764	Hawaiian Telcom Holdco, Inc.(b)		72,804
	7,580	Iridium Communications, Inc.(b)(c)		77,089
	3,830	Spok Holdings, Inc.		72,100
				446,756
		Utilities—1.0%
	1,454	Chesapeake Utilities Corp.		69,472
	2,381	SJW Corp.		69,644
	9,947	Star Gas Partners LP		74,603
	2,117	Unitil Corp.		72,401
				286,120
		Total Common Stocks and Other Equity Interests (Cost $27,396,074)		28,914,052
		Money Market Fund—0.3%
	92,417	Invesco Premier Portfolio—Institutional Class(d) (Cost $92,417)		92,417
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $27,488,491)—100.3%		29,006,469

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

75

PowerShares Zacks Micro Cap Portfolio (PZI) (continued)

April 30, 2015

Number of Shares			Value
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—0.8%
	242,702	Invesco Liquid Assets Portfolio—Institutional Class(d)(e) (Cost $242,702)	$	242,702
		Total Investments (Cost $27,731,193)—101.1%		29,249,171
		Other assets less liabilities—(1.1)%		(329,548	)
		Net Assets—100.0%	$	28,919,623

Investment Abbreviations:

REIT—Real Estate Investment Trust

Notes to Schedule of Investments:

^(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.

^(b)  Non-income producing security.

^(c)  All or a portion of this security was out on loan at April 30, 2015.

^(d)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated.

^(e)  The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2G. The following table presents the Fund’s gross and net amount of assets available for offset by the Fund as of April 30, 2015.

Counterparty	Gross Amount of Securities on Loan at Value		Cash Collateral Received for Securities Loaned*			Net Amount
Citibank	$	229,410	$	(229,410	)	$	—

* Amount does not include excess collateral received, if any.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

76

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Statements of Assets and Liabilities

April 30, 2015

	PowerShares Dynamic Large Cap Growth Portfolio (PWB)			PowerShares Dynamic Large Cap Value Portfolio (PWV)			PowerShares Fundamental Pure Large Core Portfolio (PXLC)			PowerShares Fundamental Pure Large Growth Portfolio (PXLG)
Assets:
Unaffiliated investments, at value(a)	$	327,467,782		$	1,086,940,541		$	42,228,946		$	145,412,715
Affiliated investments, at value		210,425			—			64,946			178,897
Total investments, at value		327,678,207			1,086,940,541			42,293,892			145,591,612
Receivables:
Dividends		214,519			1,397,042			42,765			48,293
Investments sold		—			369,921			—			—
Expenses absorbed		—			—			—			—
Foreign tax reclaims		—			—			—			—
Securities lending		—			—			—			—
Other assets		—			—			—			—
Total Assets		327,892,726			1,088,707,504			42,336,657			145,639,905
Liabilities:
Due to custodian		—			458,404			—			—
Payables:
Investments purchased		—			—			—			—
Collateral upon return of securities loaned		—			—			—			—
Accrued advisory fees		136,888			442,458			3,367			27,808
Accrued trustees’ and officer’s fees		31,648			42,262			15,242			11,459
Accrued expenses		144,781			421,482			69,436			98,532
Total Liabilities		313,317			1,364,606			88,045			137,799
Net Assets	$	327,579,409		$	1,087,342,898		$	42,248,612		$	145,502,106
Net Assets Consist of:
Shares of beneficial interest	$	546,400,708		$	1,177,651,020		$	44,763,739		$	114,978,251
Undistributed net investment income		432,274			3,085,315			82,370			294,999
Undistributed net realized gain (loss)		(253,991,093	)		(166,299,376	)		(10,572,137	)		(1,147,722	)
Net unrealized appreciation		34,737,520			72,905,939			7,974,640			31,376,578
Net Assets	$	327,579,409		$	1,087,342,898		$	42,248,612		$	145,502,106
Shares outstanding (unlimited amount authorized, $0.01 par value)		10,850,000			34,600,000			1,050,000			4,300,000
Net asset value	$	30.19		$	31.43		$	40.24		$	33.84
Market price	$	30.17		$	31.42		$	40.21		$	33.82
Unaffiliated investments, at cost	$	292,730,262		$	1,014,034,602		$	34,254,306		$	114,036,137
Affiliated investments, at cost	$	210,425		$	—		$	64,946		$	178,897
Total investments, at cost	$	292,940,687		$	1,014,034,602		$	34,319,252		$	114,215,034
(a) Includes securities on loan with an aggregate value of	$	—		$	—		$	—		$	—

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

78

PowerShares Fundamental Pure Large Value Portfolio (PXLV)			PowerShares Fundamental Pure Mid Core Portfolio (PXMC)			PowerShares Fundamental Pure Mid Growth Portfolio (PXMG)			PowerShares Fundamental Pure Mid Value Portfolio (PXMV)			PowerShares Fundamental Pure Small Core Portfolio (PXSC)			PowerShares Fundamental Pure Small Growth Portfolio (PXSG)			PowerShares Fundamental Pure Small Value Portfolio (PXSV)			PowerShares Zacks Micro Cap Portfolio (PZI)
$	41,336,532		$	33,841,446		$	87,490,948		$	52,297,235		$	16,151,845		$	32,785,398		$	72,075,800		$	28,914,052
	16,712			521,598			456,553			1,779,844			85,991			781,913			1,664,544			335,119
	41,353,244			34,363,044			87,947,501			54,077,079			16,237,836			33,567,311			73,740,344			29,249,171
	69,865			10,859			48,640			37,597			7,047			12,733			33,504			14,248
	–			–			–			–			9,822			–			–			6,130
	–			–			–			–			3,281			–			–			–
	–			–			–			–			–			–			–			465
	–			–			–			2,443			–			2,427			3,858			1,869
	–			–			–			115			–			557			–			–
	41,423,109			34,373,903			87,996,141			54,117,234			16,257,986			33,583,028			73,777,706			29,271,883
	–			–			–			–			–			–			–			20
	–			–			–			–			26,667			557			–			–
	–			–			–			1,679,081			–			705,721			1,549,647			242,702
	1,302			2,032			15,753			4,616			–			105			18,697			3,619
	9,760			14,640			22,422			16,139			14,173			15,522			17,365			16,876
	64,539			64,978			87,528			79,752			64,413			70,479			99,144			89,043
	75,601			81,650			125,703			1,779,588			105,253			792,384			1,684,853			352,260
$	41,347,508		$	34,292,253		$	87,870,438		$	52,337,646		$	16,152,733		$	32,790,644		$	72,092,853		$	28,919,623
$	38,393,574		$	39,822,746		$	234,192,319		$	84,777,673		$	23,692,159		$	64,838,654		$	103,865,705		$	110,553,847
	112,972			48,100			233,837			123,899			27,273			80,029			178,519			50,995
	(99,289	)		(10,516,251	)		(163,768,092	)		(42,231,183	)		(9,824,443	)		(37,274,174	)		(41,215,388	)		(83,203,197	)
	2,940,251			4,937,658			17,212,374			9,667,257			2,257,744			5,146,135			9,264,017			1,517,978
$	41,347,508		$	34,292,253		$	87,870,438		$	52,337,646		$	16,152,733		$	32,790,644		$	72,092,853		$	28,919,623
	1,350,000			850,000			2,750,000			1,900,000			450,000			1,300,000			2,800,000			1,800,000
$	30.63		$	40.34		$	31.95		$	27.55		$	35.89		$	25.22		$	25.75		$	16.07
$	30.62		$	40.35		$	31.95		$	27.53		$	35.90		$	25.21		$	25.75		$	16.05
$	38,396,281		$	28,990,467		$	70,234,560		$	42,629,964		$	13,894,101		$	27,639,263		$	62,811,783		$	27,396,074
$	16,712		$	434,919		$	500,567		$	1,779,844		$	85,991		$	781,913		$	1,664,544		$	335,119
$	38,412,993		$	29,425,386		$	70,735,127		$	44,409,808		$	13,980,092		$	28,421,176		$	64,476,327		$	27,731,193
$	–		$	–		$	–		$	1,289,457		$	–		$	682,920		$	1,495,845		$	229,410

79

Statements of Operations

For the year ended April 30, 2015

	PowerShares Dynamic Large Cap Growth Portfolio (PWB)			PowerShares Dynamic Large Cap Value Portfolio (PWV)			PowerShares Fundamental Pure Large Core Portfolio (PXLC)			PowerShares Fundamental Pure Large Growth Portfolio (PXLG)
Investment Income:
Unaffiliated dividend income	$	3,516,555		$	25,008,305		$	975,061		$	2,667,841
Affiliated dividend income		30			108			11			22
Securities lending income		—			—			—			—
Foreign withholding tax		(8,710	)		—			—			—
Total Income		3,507,875			25,008,413			975,072			2,667,863
Expenses:
Advisory fees		1,449,291			4,698,129			122,496			365,349
Sub-licensing fees		86,957			281,888			24,817			73,232
Accounting & administration fees		55,520			178,004			36,770			36,770
Professional fees		28,689			36,288			25,518			26,639
Trustees’ and officer’s fees		13,210			24,778			8,636			10,136
Custodian & transfer agent fees		8,558			22,995			6,790			7,184
Other expenses		25,437			69,152			15,905			17,515
Total Expenses		1,667,662			5,311,234			240,932			536,825
Less: Waivers		(252	)		(771	)		(76,285	)		(45,676	)
Net Expenses		1,667,410			5,310,463			164,647			491,149
Net Investment Income		1,840,465			19,697,950			810,425			2,176,714
Realized and Unrealized Gain (Loss):
Net realized gain (loss) from:
Investment securities		(9,008,905	)		(21,835,726	)		238,108			(31,646	)
In-kind redemptions		43,177,030			115,768,029			804,152			2,006,767
Foreign currencies		—			—			—			—
Net realized gain (loss)		34,168,125			93,932,303			1,042,260			1,975,121
Change in net unrealized appreciation (depreciation) on:
on investment securities		11,372,465			(38,976,462	)		2,215,368			14,906,809
Foreign currencies		—			—			—			—
Net change in unrealized appreciation (depreciation)		11,372,465			(38,976,462	)		2,215,368			14,906,809
Net realized and unrealized gain (loss)		45,540,590			54,955,841			3,257,628			16,881,930
Net increase (decrease) in net assets resulting from operations	$	47,381,055		$	74,653,791		$	4,068,053		$	19,058,644

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

80

PowerShares Fundamental Pure Large Value Portfolio  (PXLV)			PowerShares Fundamental Pure Mid Core Portfolio  (PXMC)			PowerShares Fundamental Pure Mid Growth Portfolio  (PXMG)			PowerShares Fundamental Pure Mid Value Portfolio  (PXMV)			PowerShares Fundamental Pure Small Core Portfolio  (PXSC)			PowerShares Fundamental Pure Small Growth Portfolio  (PXSG)			PowerShares Fundamental Pure Small Value Portfolio  (PXSV)			PowerShares Zacks Micro Cap Portfolio  (PZI)
$	952,784		$	503,055		$	1,671,780		$	936,253		$	245,622		$	396,172		$	1,304,895		$	612,455
	7			9,088			45,323			7			11			12			15			16
	—			—			—			41,571			—			33,902			93,519			157,224
	—			—			(3,376	)		—			(53	)		(149	)		(1,879	)		(1,757	)
	952,791			512,143			1,713,727			977,831			245,580			429,937			1,396,550			767,938
	100,213			87,481			261,778			144,210			44,847			88,717			198,772			193,976
	20,071			17,437			52,786			29,110			9,000			17,798			40,059			38,795
	36,770			36,770			36,770			36,770			36,770			36,770			36,770			36,770
	25,382			25,412			26,066			25,607			25,364			25,848			25,807			27,789
	8,414			8,421			9,568			8,747			8,126			8,414			9,117			8,698
	7,333			6,868			10,373			18,867			13,617			18,820			45,475			25,559
	16,395			15,314			18,949			17,460			14,183			16,045			20,306			17,021
	214,578			197,703			416,290			280,771			151,907			212,412			376,306			348,608
	(79,862	)		(80,153	)		(64,395	)		(86,879	)		(91,689	)		(93,211	)		(109,115	)		(77,182	)
	134,716			117,550			351,895			193,892			60,218			119,201			267,191			271,426
	818,075			394,593			1,361,832			783,939			185,362			310,736			1,129,359			496,512
	(34,420	)		305,396			653,228			516,116			297,102			291,590			88,453			(7,183,190	)
	—			1,310,618			2,205,335			—			—			—			814,022			6,672,502
	—			—			—			(9,253	)		—			—			(288	)		—
	(34,420	)		1,616,014			2,858,563			506,863			297,102			291,590			902,187			(510,688	)
	1,162,749			1,118,293			2,664,286			2,402,375			1,067,365			1,431,203			2,026,503			(58,247	)
	—			—			—			(13,694	)		—			—			(9	)		—
	1,162,749			1,118,293			2,664,286			2,388,681			1,067,365			1,431,203			2,026,494			(58,247	)
	1,128,329			2,734,307			5,522,849			2,895,544			1,364,467			1,722,793			2,928,681			(568,935	)
$	1,946,404		$	3,128,900		$	6,884,681		$	3,679,483		$	1,549,829		$	2,033,529		$	4,058,040		$	(72,423	)

81

Statements of Changes in Net Assets

For the years ended April 30, 2015 and 2014

	PowerShares Dynamic Large Cap Growth Portfolio (PWB)						PowerShares Dynamic Large Cap Value Portfolio (PWV)
	2015			2014			2015			2014
Operations:
Net investment income	$	1,840,465		$	1,071,782		$	19,697,950		$	14,117,950
Net realized gain (loss)		34,168,125			61,188,563			93,932,303			93,058,616
Net change in unrealized appreciation (depreciation)		11,372,465			(17,475,378	)		(38,976,462	)		14,932,987
Net increase in net assets resulting from operations		47,381,055			44,784,967			74,653,791			122,109,553
Distributions to Shareholders from:
Net investment income		(1,697,893	)		(1,108,791	)		(18,202,206	)		(13,897,107	)
Net realized gains		—			—			—			—
Total distributions to shareholders		(1,697,893	)		(1,108,791	)		(18,202,206	)		(13,897,107	)
Shareholder Transactions:
Proceeds from shares sold		346,162,374			323,660,690			916,059,144			868,969,018
Value of shares repurchased		(349,940,685	)		(294,559,223	)		(686,255,734	)		(750,918,793	)
Net increase (decrease) in net assets resulting from shares transactions		(3,778,311	)		29,101,467			229,803,410			118,050,225
Increase in Net Assets		41,904,851			72,777,643			286,254,995			226,262,671
Net Assets:
Beginning of year		285,674,558			212,896,915			801,087,903			574,825,232
End of year	$	327,579,409		$	285,674,558		$	1,087,342,898		$	801,087,903
Undistributed net investment income (loss) at end of year	$	432,274		$	197,491		$	3,085,315		$	1,589,571
Changes in Shares Outstanding:
Shares sold		12,100,000			13,350,000			29,550,000			32,150,000
Shares repurchased		(12,400,000	)		(12,200,000	)		(22,100,000	)		(27,800,000	)
Shares outstanding, beginning of year		11,150,000			10,000,000			27,150,000			22,800,000
Shares outstanding, end of year		10,850,000			11,150,000			34,600,000			27,150,000

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

82

PowerShares Fundamental Pure Large Core Portfolio (PXLC)						PowerShares Fundamental Pure Large Growth Portfolio (PXLG)						PowerShares Fundamental Pure Large Value Portfolio (PXLV)						PowerShares Fundamental Pure Mid Core Portfolio (PXMC)
2015			2014			2015			2014			2015			2014			2015			2014
$	810,425		$	628,419		$	2,176,714		$	1,734,307		$	818,075		$	286,110		$	394,593		$	312,711
	1,042,260			3,306,997			1,975,121			2,797,144			(34,420	)		741,217			1,616,014			2,534,338
	2,215,368			2,610,982			14,906,809			13,154,514			1,162,749			1,060,399			1,118,293			2,159,025
	4,068,053			6,546,398			19,058,644			17,685,965			1,946,404			2,087,726			3,128,900			5,006,074
	(759,003	)		(612,506	)		(2,084,013	)		(2,133,201	)		(752,115	)		(263,618	)		(386,382	)		(309,864	)
	—			—			—			(65,835	)		—			(7,335	)		—			—
	(759,003	)		(612,506	)		(2,084,013	)		(2,199,036	)		(752,115	)		(270,953	)		(386,382	)		(309,864	)
	1,927,148			21,427,256			28,739,952			30,772,536			25,452,499			8,206,110			8,075,100			17,246,882
	(3,757,982	)		(14,464,293	)		(6,534,201	)		(22,754,152	)		—			(2,871,073	)		(7,392,512	)		(10,844,266	)
	(1,830,834	)		6,962,963			22,205,751			8,018,384			25,452,499			5,335,037			682,588			6,402,616
	1,478,216			12,896,855			39,180,382			23,505,313			26,646,788			7,151,810			3,425,106			11,098,826
	40,770,396			27,873,541			106,321,724			82,816,411			14,700,720			7,548,910			30,867,147			19,768,321
$	42,248,612		$	40,770,396		$	145,502,106		$	106,321,724		$	41,347,508		$	14,700,720		$	34,292,253		$	30,867,147
$	82,370		$	30,948		$	294,999		$	(202,298	)	$	112,972		$	47,012		$	48,100		$	39,889
	50,000			600,000			900,000			1,100,000			849,999			300,000			200,000			500,000
	(100,000	)		(400,000	)		(200,001	)		(800,000	)		—			(100,000	)		(200,000	)		(300,000	)
	1,100,000			900,000			3,600,001			3,300,001			500,001			300,001			850,000			650,000
	1,050,000			1,100,000			4,300,000			3,600,001			1,350,000			500,001			850,000			850,000

83

Statements of Changes in Net Assets (continued)

For the years ended April 30, 2015 and 2014

	PowerShares Fundamental Pure Mid Growth Portfolio (PXMG)						PowerShares Fundamental Pure Mid Value Portfolio (PXMV)
	2015			2014			2015			2014
Operations:
Net investment income	$	1,361,832		$	1,029,330		$	783,939		$	572,308
Net realized gain (loss)		2,858,563			6,742,034			506,863			3,996,687
Net change in unrealized appreciation (depreciation)		2,664,286			5,747,374			2,388,681			3,640,616
Net increase (decrease) in net assets resulting from operations		6,884,681			13,518,738			3,679,483			8,209,611
Distributions to Shareholders from:
Net investment income		(1,325,669	)		(1,178,058	)		(710,318	)		(549,786	)
Shareholder Transactions:
Proceeds from shares sold		1,625,910			24,086,636			6,659,516			18,202,301
Value of shares repurchased		(10,869,623	)		(26,973,280	)		—			(11,473,851	)
Net increase (decrease) in net assets resulting from shares transactions		(9,243,713	)		(2,886,644	)		6,659,516			6,728,450
Increase (Decrease) in Net Assets		(3,684,701	)		9,454,036			9,628,681			14,388,275
Net Assets:
Beginning of year		91,555,139			82,101,103			42,708,965			28,320,690
End of year	$	87,870,438		$	91,555,139		$	52,337,646		$	42,708,965
Undistributed net investment income at end of year	$	233,837		$	197,674		$	123,899		$	59,531
Changes in Shares Outstanding:
Shares sold		50,000			800,000			250,000			750,000
Shares repurchased		(350,000	)		(900,000	)		—			(450,000	)
Shares outstanding, beginning of year		3,050,000			3,150,000			1,650,000			1,350,000
Shares outstanding, end of year		2,750,000			3,050,000			1,900,000			1,650,000

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

84

PowerShares Fundamental Pure Small Core Portfolio (PXSC)						PowerShares Fundamental Pure Small Growth Portfolio (PXSG)						PowerShares Fundamental Pure Small Value Portfolio (PXSV)						PowerShares Zacks Micro Cap Portfolio (PZI)
2015			2014			2015			2014			2015			2014			2015			2014
$	185,362		$	166,719		$	310,736		$	252,303		$	1,129,359		$	751,850		$	496,512		$	701,465
	297,102			2,710,573			291,590			2,796,204			902,187			8,481,682			(510,688	)		10,130,819
	1,067,365			(109,024	)		1,431,203			2,457,284			2,026,494			3,919,701			(58,247	)		(1,734,740	)
	1,549,829			2,768,268			2,033,529			5,505,791			4,058,040			13,153,233			(72,423	)		9,097,544
	(180,742	)		(198,389	)		(404,987	)		(268,388	)		(1,010,155	)		(729,968	)		(822,121	)		(512,267	)
	—			9,749,513			1,289,891			8,700,003			6,269,836			28,894,203			22,481,177			48,525,479
	—			(12,825,382	)		—			(10,711,283	)		(2,600,649	)		(24,025,732	)		(54,448,541	)		(37,384,029	)
	—			(3,075,869	)		1,289,891			(2,011,280	)		3,669,187			4,868,471			(31,967,364	)		11,141,450
	1,369,087			(505,990	)		2,918,433			3,226,123			6,717,072			17,291,736			(32,861,908	)		19,726,727
	14,783,646			15,289,636			29,872,211			26,646,088			65,375,781			48,084,045			61,781,531			42,054,804
$	16,152,733		$	14,783,646		$	32,790,644		$	29,872,211		$	72,092,853		$	65,375,781		$	28,919,623		$	61,781,531
$	27,273		$	21,797		$	80,029		$	173,520		$	178,519		$	76,309		$	50,995		$	365,535
	—			300,000			50,000			350,000			250,000			1,150,000			1,350,000			3,050,000
	—			(400,000	)		—			(450,000	)		(100,000	)		(950,000	)		(3,350,000	)		(2,350,000	)
	450,000			550,000			1,250,000			1,350,000			2,650,000			2,450,000			3,800,000			3,100,000
	450,000			450,000			1,300,000			1,250,000			2,800,000			2,650,000			1,800,000			3,800,000

85

Financial Highlights

PowerShares Dynamic Large Cap Growth Portfolio (PWB)

	Year Ended April 30,
	2015			2014			2013			2012			2011
Per Share Operating Performance:
Net asset value at beginning of year	$	25.62		$	21.29		$	18.73		$	17.63		$	14.91
Net investment income(a)		0.18			0.10			0.21			0.15			0.11
Net realized and unrealized gain on investments		4.56			4.34			2.55			1.09			2.72
Total from investment operations		4.74			4.44			2.76			1.24			2.83
Distributions to shareholders from:
Net investment income		(0.17	)		(0.11	)		(0.20	)		(0.14	)		(0.11	)
Net asset value at end of year	$	30.19		$	25.62		$	21.29		$	18.73		$	17.63
Market price at end of year(b)	$	30.17		$	25.62		$	21.28		$	18.72		$	17.63
Net Asset Value Total Return(c)		18.52	%		20.91	%		14.91	%		7.18	%		19.08	%
Market Price Total Return(c)		18.44	%		20.96	%		14.92	%		7.12	%		19.08	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	327,579		$	285,675		$	212,897		$	191,013		$	196,574
Ratio to average net assets of:
Expenses, after Waivers		0.58	%		0.58	%		0.59	%		0.61	%		0.63	%
Expenses, prior to Waivers		0.58	%		0.58	%		0.59	%		0.62	%		0.64	%
Net investment income, after Waivers		0.63	%		0.43	%		1.08	%		0.89	%		0.73	%
Portfolio turnover rate(d)		143	%		123	%		47	%		64	%		45	%

^(a)  Based on average shares outstanding.

^(b)  The mean between the last bid and ask prices.

^(c)  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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(d)  Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.

PowerShares Dynamic Large Cap Value Portfolio (PWV)

	Year Ended April 30,
	2015			2014			2013			2012			2011
Per Share Operating Performance:
Net asset value at beginning of year	$	29.51		$	25.21		$	20.73		$	20.35		$	18.05
Net investment income(a)		0.64			0.55			0.52			0.46			0.40
Net realized and unrealized gain on investments		1.88			4.30			4.48			0.38			2.33
Total from investment operations		2.52			4.85			5.00			0.84			2.73
Distributions to shareholders from:
Net investment income		(0.60	)		(0.55	)		(0.52	)		(0.46	)		(0.43	)
Net asset value at end of year	$	31.43		$	29.51		$	25.21		$	20.73		$	20.35
Market price at end of year(b)	$	31.42		$	29.49		$	25.22		$	20.71		$	20.36
Net Asset Value Total Return(c)		8.56	%		19.48	%		24.55	%		4.34	%		15.50	%
Market Price Total Return(c)		8.60	%		19.35	%		24.72	%		4.20	%		15.49	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	1,087,343		$	801,088		$	574,825		$	419,740		$	422,319
Ratio to average net assets of:
Expenses, after Waivers		0.57	%		0.57	%		0.59	%		0.59	%		0.61	%
Expenses, prior to Waivers		0.57	%		0.57	%		0.59	%		0.59	%		0.61	%
Net investment income, after Waivers		2.10	%		2.04	%		2.36	%		2.39	%		2.22	%
Portfolio turnover rate(d)		82	%		103	%		58	%		41	%		40	%

^(a)  Based on average shares outstanding.

^(b)  The mean between the last bid and ask prices.

^(c)  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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(d)  Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

86

Financial Highlights (continued)

PowerShares Fundamental Pure Large Core Portfolio (PXLC)

	Year Ended April 30,
	2015			2014			2013			2012			2011
Per Share Operating Performance:
Net asset value at beginning of year	$	37.06		$	30.97		$	26.66		$	26.42		$	23.26
Net investment income(a)		0.75			0.63			0.65			0.57			0.37
Net realized and unrealized gain on investments		3.14			6.03			4.35			0.32			3.16
Total from investment operations		3.89			6.66			5.00			0.89			3.53
Distributions to shareholders from:
Net investment income		(0.71	)		(0.57	)		(0.69	)		(0.65	)		(0.37	)
Net asset value at end of year	$	40.24		$	37.06		$	30.97		$	26.66		$	26.42
Market price at end of year(b)	$	40.21		$	37.08		$	30.98		$	26.66		$	26.42
Net Asset Value Total Return(c)		10.52	%		21.69	%		19.10	%		3.64	%		15.40	%
Market Price Total Return(c)		10.38	%		21.72	%		19.15	%		3.64	%		15.40	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	42,249		$	40,770		$	27,874		$	25,326		$	35,673
Ratio to average net assets of:
Expenses, after Waivers		0.39	%		0.39	%		0.39	%		0.43	%		0.65	%
Expenses, prior to Waivers		0.57	%		0.60	%		0.80	%		0.90	%		0.99	%
Net investment income, after Waivers		1.92	%		1.85	%		2.38	%		2.32	%		1.61	%
Portfolio turnover rate(d)		3	%		38	%		43	%		58	%		41	%

^(a)  Based on average shares outstanding.

^(b)  The mean between the last bid and ask prices.

^(c)  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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(d)  Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.

PowerShares Fundamental Pure Large Growth Portfolio (PXLG)

	Year Ended April 30,									For the Period June 13, 2011(a) Through April 30, 2012
	2015			2014			2013
Per Share Operating Performance:
Net asset value at beginning of year	$	29.53		$	25.10		$	22.20		$	20.00
Net investment income(b)		0.55			0.50			0.39			0.28
Net realized and unrealized gain on investments		4.29			4.57			2.87			2.09
Total from investment operations		4.84			5.07			3.26			2.37
Distributions to shareholders from:
Net investment income		(0.53	)		(0.62	)		(0.36	)		(0.17	)
Net realized gains		—			(0.02	)		—			—
Total distributions		(0.53	)		(0.64	)		(0.36	)		(0.17	)
Net asset value at end of year	$	33.84		$	29.53		$	25.10		$	22.20
Market price at end of year(c)	$	33.82		$	29.52		$	25.08		$	22.19
Net Asset Value Total Return(d)		16.49	%		20.54	%		14.87	%		11.99	%(e)
Market Price Total Return(d)		16.46	%		20.59	%		14.83	%		11.94	%(e)
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	145,502		$	106,322		$	82,816		$	4,440
Ratio to average net assets of:
Expenses, after Waivers		0.39	%		0.39	%		0.39	%		0.39	%(f)
Expenses, prior to Waivers		0.43	%		0.45	%		0.79	%		7.69	%(f)
Net investment income, after Waivers		1.73	%		1.84	%		1.63	%		1.54	%(f)
Portfolio turnover rate(g)		2	%		22	%		90	%		3	%

^(a)  Commencement of investment operations.

^(b)  Based on average shares outstanding.

^(c)  The mean between the last bid and ask prices.

^(d)  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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(e)  The net asset value total return from Fund Inception (June 16, 2011, the first day of trading on the exchange) to April 30, 2012 was 13.81%. The market price total return from Fund Inception to April 30, 2012 was 13.87%.

^(f)  Annualized.

^(g)  Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

87

Financial Highlights (continued)

PowerShares Fundamental Pure Large Value Portfolio (PXLV)

	Year Ended April 30,									For the Period June 13, 2011(a) Through April 30, 2012
	2015			2014			2013
Per Share Operating Performance:
Net asset value at beginning of year	$	29.40		$	25.16		$	20.37		$	20.00
Net investment income(b)		0.72			0.63			0.52			0.39
Net realized and unrealized gain on investments		1.16			4.17			4.77			0.33
Total from investment operations		1.88			4.80			5.29			0.72
Distributions to shareholders from:
Net investment income		(0.65	)		(0.54	)		(0.50	)		(0.35	)
Net realized gains		—			(0.02	)		—			—
Total distributions		(0.65	)		(0.56	)		(0.50	)		(0.35	)
Net asset value at end of year	$	30.63		$	29.40		$	25.16		$	20.37
Market price at end of year(c)	$	30.62		$	29.39		$	25.16		$	20.35
Net Asset Value Total Return(d)		6.41	%		19.27	%		26.41	%		3.80	%(e)
Market Price Total Return(d)		6.41	%		19.23	%		26.53	%		3.70	%(e)
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	41,348		$	14,701		$	7,549		$	8,148
Ratio to average net assets of:
Expenses, after Waivers		0.39	%		0.39	%		0.39	%		0.39	%(f)
Expenses, prior to Waivers		0.62	%		1.05	%		2.10	%		2.87	%(f)
Net investment income, after Waivers		2.37	%		2.32	%		2.43	%		2.38	%(f)
Portfolio turnover rate(g)		2	%		23	%		9	%		2	%

^(a)  Commencement of investment operations.

^(b)  Based on average shares outstanding.

^(c)  The mean between the last bid and ask prices.

^(d)  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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(e)  The net asset value total return from Fund Inception (June 16, 2011, the first day of trading on the exchange) to April 30, 2012 was 5.17%. The market price total return from Fund Inception to April 30, 2012 was 5.23%.

^(f)  Annualized.

^(g)  Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.

PowerShares Fundamental Pure Mid Core Portfolio (PXMC)

	Year Ended April 30,
	2015			2014			2013			2012			2011
Per Share Operating Performance:
Net asset value at beginning of year	$	36.31		$	30.41		$	26.60		$	27.15		$	23.05
Net investment income(a)		0.50			0.40			0.43			0.29			0.21
Net realized and unrealized gain (loss) on investments		4.03			5.90			3.80			(0.57	)		4.10
Total from investment operations		4.53			6.30			4.23			(0.28	)		4.31
Distributions to shareholders from:
Net investment income		(0.50	)		(0.40	)		(0.42	)		(0.27	)		(0.21	)
Net asset value at end of year	$	40.34		$	36.31		$	30.41		$	26.60		$	27.15
Market price at end of year(b)	$	40.35		$	36.25		$	30.39		$	26.62		$	27.15
Net Asset Value Total Return(c)		12.52	%		20.85	%		16.16	%		(0.93	)%		18.84	%
Market Price Total Return(c)		12.73	%		20.73	%		16.00	%		(0.85	)%		18.89	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	34,292		$	30,867		$	19,768		$	18,623		$	23,081
Ratio to average net assets of:
Expenses, after Waivers		0.39	%		0.39	%		0.39	%		0.43	%		0.65	%
Expenses, prior to Waivers		0.66	%		0.69	%		1.00	%		1.01	%		1.20	%
Net investment income, after Waivers		1.31	%		1.19	%		1.58	%		1.16	%		0.88	%
Portfolio turnover rate(d)		5	%		50	%		38	%		83	%		47	%

^(a)  Based on average shares outstanding.

^(b)  The mean between the last bid and ask prices.

^(c)  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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(d)  Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

88

Financial Highlights (continued)

PowerShares Fundamental Pure Mid Growth Portfolio (PXMG)

	Year Ended April 30,
	2015			2014			2013			2012			2011
Per Share Operating Performance:
Net asset value at beginning of year	$	30.02		$	26.06		$	22.65		$	24.13		$	19.11
Net investment income (loss)(a)		0.47			0.33			0.26			0.13			(0.01	)
Net realized and unrealized gain (loss) on investments		1.92			4.01			3.38			(1.53	)		5.09
Total from investment operations		2.39			4.34			3.64			(1.40	)		5.08
Distributions to shareholders from:
Net investment income		(0.46	)		(0.38	)		(0.23	)		(0.08	)		—
Return of capital		—			—			—			—			(0.06	)
Total distributions		(0.46	)		(0.38	)		(0.23	)		(0.08	)		(0.06	)
Net asset value at end of year	$	31.95		$	30.02		$	26.06		$	22.65		$	24.13
Market price at end of year(b)	$	31.95		$	29.99		$	26.04		$	22.63		$	24.13
Net Asset Value Total Return(c)		7.98	%		16.80	%		16.23	%		(5.74	)%		26.61	%
Market Price Total Return(c)		8.09	%		16.77	%		16.25	%		(5.83	)%		26.67	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	87,870		$	91,555		$	82,101		$	87,203		$	130,290
Ratio to average net assets of:
Expenses, after Waivers		0.39	%		0.39	%		0.39	%		0.43	%		0.63	%
Expenses, prior to Waivers		0.46	%		0.45	%		0.54	%		0.55	%		0.69	%
Net investment income (loss), after Waivers		1.51	%		1.19	%		1.14	%		0.61	%		(0.06	)%
Portfolio turnover rate(d)		3	%		33	%		33	%		75	%		49	%

^(a)  Based on average shares outstanding.

^(b)  The mean between the last bid and ask prices.

^(c)  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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(d)  Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.

PowerShares Fundamental Pure Mid Value Portfolio (PXMV)

	Year Ended April 30,
	2015			2014			2013			2012			2011
Per Share Operating Performance:
Net asset value at beginning of year	$	25.88		$	20.98		$	17.06		$	17.07		$	15.37
Net investment income(a)		0.43			0.37			0.37			0.25			0.15
Net realized and unrealized gain (loss) on investments		1.63			4.87			3.94			(0.03	)		1.70
Total from investment operations		2.06			5.24			4.31			0.22			1.85
Distributions to shareholders from:
Net investment income		(0.39	)		(0.34	)		(0.39	)		(0.23	)		(0.15	)
Net asset value at end of year	$	27.55		$	25.88		$	20.98		$	17.06		$	17.07
Market price at end of year(b)	$	27.53		$	25.87		$	20.98		$	17.04		$	17.07
Net Asset Value Total Return(c)		7.98	%		25.19	%		25.74	%		1.42	%		12.16	%
Market Price Total Return(c)		7.94	%		25.14	%		25.89	%		1.30	%		12.24	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	52,338		$	42,709		$	28,321		$	32,408		$	40,970
Ratio to average net assets of:
Expenses, after Waivers		0.39	%(d)		0.39	%		0.39	%		0.43	%		0.63	%
Expenses, prior to Waivers		0.56	%(d)		0.62	%		0.82	%		0.79	%		0.91	%
Net investment income, after Waivers		1.58	%		1.56	%		2.08	%		1.57	%		0.99	%
Portfolio turnover rate(e)		4	%		33	%		25	%		83	%		65	%

^(a)  Based on average shares outstanding.

^(b)  The mean between the last bid and ask prices.

^(c)  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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(d)  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. Such indirect expenses are not included in the expense ratio shown. Estimated investment company expenses are not expenses that are incurred directly by the Fund. They are expenses that are incurred directly by the investment companies and are deducted from the value of the funds that the Fund invests in. The effect of the estimated investment company expenses that the Fund bears indirectly is included in the Fund’s total return.

^(e)  Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

89

Financial Highlights (continued)

PowerShares Fundamental Pure Small Core Portfolio (PXSC)

	Year Ended April 30,
	2015			2014			2013			2012			2011
Per Share Operating Performance:
Net asset value at beginning of year	$	32.85		$	27.80		$	24.21		$	25.32		$	21.07
Net investment income(a)		0.41			0.33			0.46			0.22			0.09
Net realized and unrealized gain (loss) on investments		3.03			5.12			3.60			(1.18	)		4.25
Total from investment operations		3.44			5.45			4.06			(0.96	)		4.34
Distributions to shareholders from:
Net investment income		(0.40	)		(0.40	)		(0.47	)		(0.15	)		(0.09	)
Net asset value at end of year	$	35.89		$	32.85		$	27.80		$	24.21		$	25.32
Market price at end of year(b)	$	35.90		$	32.84		$	27.76		$	24.18		$	25.33
Net Asset Value Total Return(c)		10.53	%		19.76	%		17.05	%		(3.70	)%		20.64	%
Market Price Total Return(c)		10.59	%		19.90	%		17.03	%		(3.85	)%		20.80	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	16,153		$	14,784		$	15,290		$	15,735		$	18,991
Ratio to average net assets of:
Expenses, after Waivers		0.39	%(d)		0.39	%		0.39	%		0.43	%		0.65	%
Expenses, prior to Waivers		0.98	%(d)		0.94	%		1.22	%		1.25	%		1.41	%
Net investment income, after Waivers		1.20	%		1.06	%		1.88	%		0.97	%		0.42	%
Portfolio turnover rate(e)		7	%		50	%		45	%		97	%		68	%

^(a)  Based on average shares outstanding.

^(b)  The mean between the last bid and ask prices.

^(c)  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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(d)  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. Such indirect expenses are not included in the expense ratio shown. Estimated investment company expenses are not expenses that are incurred directly by the Fund. They are expenses that are incurred directly by the investment companies and are deducted from the value of the funds that the Fund invests in. The effect of the estimated investment company expenses that the Fund bears indirectly is included in the Fund’s total return.

^(e)  Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.

PowerShares Fundamental Pure Small Growth Portfolio (PXSG)

	Year Ended April 30,
	2015			2014			2013			2012			2011
Per Share Operating Performance:
Net asset value at beginning of year	$	23.90		$	19.74		$	17.66		$	19.03		$	14.12
Net investment income (loss)(a)		0.25			0.20			0.13			0.07			(0.05	)
Net realized and unrealized gain (loss) on investments		1.39			4.17			2.08			(1.44	)		4.96
Total from investment operations		1.64			4.37			2.21			(1.37	)		4.91
Distributions to shareholders from:
Net investment income		(0.32	)		(0.21	)		(0.13	)		—			—
Net asset value at end of year	$	25.22		$	23.90		$	19.74		$	17.66		$	19.03
Market price at end of year(b)	$	25.21		$	23.89		$	19.72		$	17.64		$	19.05
Net Asset Value Total Return(c)		6.92	%		22.31	%		12.63	%		(7.20	)%		34.77	%
Market Price Total Return(c)		6.92	%		22.38	%		12.65	%		(7.40	)%		35.11	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	32,791		$	29,872		$	26,646		$	30,913		$	109,451
Ratio to average net assets of:
Expenses, after Waivers		0.39	%(d)		0.39	%(d)		0.39	%(d)		0.48	%		0.63	%
Expenses, prior to Waivers		0.69	%(d)		0.70	%(d)		0.92	%(d)		0.69	%		0.93	%
Net investment income (loss), after Waivers		1.02	%		0.90	%		0.72	%		0.41	%		(0.37	)%
Portfolio turnover rate(e)		6	%		39	%		39	%		189	%		57	%

^(a)  Based on average shares outstanding.

^(b)  The mean between the last bid and ask prices.

^(c)  Net assets 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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning at the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(d)  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. Such indirect expenses are not included in the expense ratio shown. Estimated investment company expenses are not expenses that are incurred directly by the Fund. They are expenses that are incurred directly by the investment companies and are deducted from the value of the funds that the Fund invests in. The effect of the estimated investment company expenses that the Fund bears indirectly is included in the Fund’s total return.

^(e)  Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

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Financial Highlights (continued)

PowerShares Fundamental Pure Small Value Portfolio (PXSV)

	Year Ended April 30,
	2015			2014			2013			2012			2011
Per Share Operating Performance:
Net asset value at beginning of year	$	24.67		$	19.63		$	16.35		$	17.07		$	14.64
Net investment income(a)		0.42			0.30			0.32			0.19			0.16
Net realized and unrealized gain (loss) on investments		1.03			5.03			3.31			(0.72	)		2.45
Total from investment operations		1.45			5.33			3.63			(0.53	)		2.61
Distributions to shareholders from:
Net investment income		(0.37	)		(0.29	)		(0.35	)		(0.19	)		(0.18	)
Net asset value at end of year	$	25.75		$	24.67		$	19.63		$	16.35		$	17.07
Market price at end of year(b)	$	25.75		$	24.68		$	19.61		$	16.33		$	17.08
Net Asset Value Total Return(c)		5.91	%		27.29	%		22.56	%		(3.01	)%		18.03	%
Market Price Total Return(c)		5.87	%		27.47	%		22.58	%		(3.18	)%		18.26	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	72,093		$	65,376		$	48,084		$	52,312		$	72,540
Ratio to average net assets of:
Expenses, after Waivers		0.39	%		0.39	%		0.39	%		0.43	%		0.63	%
Expenses, prior to Waivers		0.55	%		0.54	%		0.70	%		0.64	%		0.80	%
Net investment income, after Waivers		1.65	%		1.31	%		1.87	%		1.28	%		1.14	%
Portfolio turnover rate(d)		5	%		43	%		31	%		109	%		90	%

^(a)  Based on average shares outstanding.

^(b)  The mean between the last bid and ask prices.

^(c)  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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(d)  Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.

PowerShares Zacks Micro Cap Portfolio (PZI)

	Year Ended April 30,
	2015			2014			2013			2012			2011
Per Share Operating Performance:
Net asset value at beginning of year	$	16.26		$	13.57		$	11.34		$	12.53		$	11.69
Net investment income(a)		0.21			0.20			0.20			0.10			0.04
Net realized and unrealized gain (loss) on investments		(0.09	)		2.65			2.25			(1.16	)		0.88
Total from investment operations		0.12			2.85			2.45			(1.06	)		0.92
Distributions to shareholders from:
Net investment income		(0.31	)		(0.16	)		(0.22	)		(0.13	)		(0.08	)
Net asset value at end of year	$	16.07		$	16.26		$	13.57		$	11.34		$	12.53
Market price at end of year(b)	$	16.05		$	16.25		$	13.54		$	11.32		$	12.52
Net Asset Value Total Return(c)		0.71	%		21.06	%		21.95	%		(8.34	)%		7.97	%
Market Price Total Return(c)		0.64	%		21.25	%		21.90	%		(8.42	)%		7.97	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	28,920		$	61,782		$	42,055		$	34,019		$	98,964
Ratio to average net assets of:
Expenses, after Waivers(d)		0.70	%		0.70	%		0.70	%		0.70	%		0.70	%
Expenses, prior to Waivers(d)		0.90	%		0.79	%		0.98	%		0.92	%		0.85	%
Net investment income, after Waivers		1.28	%		1.29	%		1.72	%		0.92	%		0.39	%
Portfolio turnover rate(e)		115	%		123	%		96	%		67	%		61	%

^(a)  Based on average shares outstanding.

^(b)  The mean between the last bid and ask prices.

^(c)  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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(d)  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. Such indirect expenses are not included in the expense ratio shown. Estimated investment company expenses are not expenses that are incurred directly by the Fund. They are expenses that are incurred directly by the investment companies and are deducted from the value of the funds that the Fund invests in. The effect of the estimated investment company expenses that the Fund bears indirectly is included in the Fund’s total return.

^(e)  Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

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Notes to Financial Statements

PowerShares Exchange-Traded Fund Trust

April 30, 2015

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, 2015, the Trust offered fifty-three portfolios. This report includes the following portfolios:

Full Name	Short Name
PowerShares Dynamic Large Cap Growth Portfolio (PWB)	“Dynamic Large Cap Growth Portfolio”
PowerShares Dynamic Large Cap Value Portfolio (PWV)	“Dynamic Large Cap Value Portfolio”
PowerShares Fundamental Pure Large Core Portfolio (PXLC)	“ Fundamental Pure Large Core Portfolio”
PowerShares Fundamental Pure Large Growth Portfolio (PXLG)	“ Fundamental Pure Large Growth Portfolio”
PowerShares Fundamental Pure Large Value Portfolio (PXLV)	“ Fundamental Pure Large Value Portfolio”
PowerShares Fundamental Pure Mid Core Portfolio (PXMC)	“ Fundamental Pure Mid Core Portfolio”
PowerShares Fundamental Pure Mid Growth Portfolio (PXMG)	“ Fundamental Pure Mid Growth Portfolio”
PowerShares Fundamental Pure Mid Value Portfolio (PXMV)	“ Fundamental Pure Mid Value Portfolio”
PowerShares Fundamental Pure Small Core Portfolio (PXSC)	“ Fundamental Pure Small Core Portfolio”
PowerShares Fundamental Pure Small Growth Portfolio (PXSG)	“ Fundamental Pure Small Growth Portfolio”
PowerShares Fundamental Pure Small Value Portfolio (PXSV)	“ Fundamental Pure Small Value Portfolio”
PowerShares Zacks Micro Cap Portfolio (PZI)	“Zacks Micro Cap Portfolio”

Each portfolio (each, a “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 NYSE Arca, Inc.

The market price of each Share may differ to some degree from the Fund’s net asset value (“NAV”). 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 principally in exchange for the deposit or delivery of a basket of securities (“Deposit Securities”). 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 generally correspond (before fees and expenses) to the price and yield of its respective index listed below (each, an “Underlying Index”):

Fund	Underlying Index
Dynamic Large Cap Growth Portfolio	Dynamic Large Cap Growth IntellidexSM Index
Dynamic Large Cap Value Portfolio	Dynamic Large Cap Value IntellidexSM Index
Fundamental Pure Large Core Portfolio	RAFI® Fundamental Large Core Index
Fundamental Pure Large Growth Portfolio	RAFI® Fundamental Large Growth Index
Fundamental Pure Large Value Portfolio	RAFI® Fundamental Large Value Index
Fundamental Pure Mid Core Portfolio	RAFI® Fundamental Mid Core Index
Fundamental Pure Mid Growth Portfolio	RAFI® Fundamental Mid Growth Index
Fundamental Pure Mid Value Portfolio	RAFI® Fundamental Mid Value Index
Fundamental Pure Small Core Portfolio	RAFI® Fundamental Small Core Index
Fundamental Pure Small Growth Portfolio	RAFI® Fundamental Small Growth Index
Fundamental Pure Small Value Portfolio	RAFI® Fundamental Small Value Index
Zacks Micro Cap Portfolio	Zacks Micro Cap IndexTM

Note 2. Significant Accounting Policies

The preparation of the financial statements in accordance with accounting principles generally accepted in the United States of America (“GAAP”) 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

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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. The following is a summary of the significant accounting policies followed by the Funds in preparation of their financial statements.

A. Security Valuation

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

A security listed or traded on an exchange (except convertible securities) 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. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked 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 asked prices. For purposes of determining NAV per Share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).

Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end of day NAV per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the 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.

Debt obligations (including convertible securities) 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 (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Securities with a demand feature exercisable within one to seven days are valued at par. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

Foreign securities’ (including foreign exchange contracts’) prices 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 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 Invesco PowerShares Capital Management LLC (the “Adviser”) determines 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’ prices 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. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.

Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith following procedures approved by the Board of Trustees. Issuer-specific events, market trends, bid/asked 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.

Each Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.

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

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valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

B. Other Risks

Index Risk. Unlike many investment companies, the Funds do not utilize investing strategies that seek returns in excess of their Underlying Indexes. Therefore, a Fund would not necessarily buy or sell a security unless that security is added or removed, respectively, from its respective Underlying Index, even if that security generally is underperforming.

Equity Risk. Equity risk is the risk that the value of the securities that each Fund holds will fall due to general market and economic conditions, perceptions regarding the industries in which the issuers of securities that a Fund holds participate or factors relating to specific companies in which the Fund invests. For example, an adverse event, such as an unfavorable earnings report, may depress the value of securities a Fund holds; the price of securities may be particularly sensitive to general movements in the stock market; or a drop in the stock market may depress the price of most or all of the securities a Fund holds. In addition, securities of an issuer in the Fund’s portfolio may decline in price if the issuer fails to make anticipated dividend payments because, among other reasons, the issuer of the security experiences a decline in its financial condition.

Industry Concentration Risk. In following its methodology, each Fund’s Underlying Index from time to time may be concentrated to a significant degree in securities of issuers located in a single industry or a sector. To the extent that an Underlying Index concentrates in the securities of issuers in a particular industry or sector, each Fund will also concentrate its investments to approximately the same extent. By concentrating its investments in an industry or sector, a Fund may face more risks than if it were diversified broadly over numerous industries or sectors. In addition, at times, an industry or sector may be out of favor and underperform other industries or the market as a whole. Any factors detrimental to the performance of such industry or sector will disproportionately impact a Fund’s NAV.

Non-Diversified Fund Risk. Fundamental Pure Large Growth Portfolio and Fundamental Pure Large Value Portfolio are non-diversified and can invest a greater portion of their assets in securities of individual issuers than diversified funds. 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. This may increase a Fund’s volatility and cause the performance of a relatively small number of issuers to have a greater impact on a Fund’s performance.

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 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.

Core Risk. For Fundamental Pure Large Core Portfolio, Fundamental Pure Mid Core Portfolio and Fundamental Pure Small Core Portfolio, the returns on “core” securities may or may not move in tandem with the returns on other styles of investing or the overall stock market. Thus, the value of each Fund’s investments will vary and at times may be lower or higher than that of other types of investments.

Small and Medium Capitalization Company Risk. For Fundamental Pure Mid Core Portfolio , Fundamental Pure Mid Growth Portfolio, Fundamental Pure Mid Value Portfolio, Fundamental Pure Small Core Portfolio, Fundamental Pure Small Growth Portfolio and Fundamental Pure Small Value Portfolio, investing in securities of small and medium capitalization companies involves greater risk than customarily is 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 focus are still evolving and, as a result, they may be more sensitive to changing market conditions.

Growth Risk. For Dynamic Large Cap Growth Portfolio, Fundamental Pure Large Growth Portfolio, Fundamental Pure Mid Growth Portfolio and Fundamental Pure Small Growth Portfolio, the market values of “growth” securities may be more volatile than other types of investments. The returns on “growth” securities may or may not move in tandem with the returns on other styles of investing or the overall stock market. Thus, the value of each Fund’s investments will vary and at times may be lower or higher than that of other types of investments.

Micro Capitalization Company Risk. Zacks Micro Cap Portfolio’s investments in the securities of micro capitalization companies involve substantially greater risks of loss and price fluctuations. Micro capitalization companies carry additional risks because their earnings and revenues tend to be less predictable (and some companies may be experiencing significant losses), and their share prices tend to be more volatile and their markets less liquid than companies with larger market capitalizations. Also, it may take a long time before the Fund realizes a gain, if any, on an investment in a micro capitalization company.

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REIT Risk. For each Fund (except for Dynamic Large Cap Growth Portfolio, Dynamic Large Cap Value Portfolio and Zacks Micro Cap Portfolio), although the Funds will not invest in real estate directly, the REITs in which the Funds invest are subject to risks inherent in the direct ownership of real estate. These risks include, but are not limited to, a possible lack of mortgage funds and associated interest rate risks, overbuilding, property vacancies, increases in property taxes and operating expenses, changes in zoning laws, losses due to environmental damages and changes in neighborhood values and appeal to purchasers.

Value Risk. For Dynamic Large Cap Value Portfolio, Fundamental Pure Large Value Portfolio, Fundamental Pure Mid Value Portfolio and Fundamental Pure Small Value Portfolio, “value” securities are subject to the risk that the valuations never improve or that the returns on “value” securities are less than returns on other styles of investing or the overall stock market. Thus, the value of each Fund’s investments will vary and at times may be lower or higher than that of other types of investments.

C. Federal Income Taxes

Each Fund intends to comply with the provisions of the Internal Revenue Code of 1986, as amended (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.

Each Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed each Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.

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 U.S. federal tax returns and tax returns in 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 Transactions and Investment Income

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

Corporate actions (including cash dividends) are recorded net of non-reclaimable foreign tax withholdings on the ex-date.

E. Expenses

Expenses of the Trust that are directly identifiable to a specific Fund are applied to that Fund. Expenses of the Trust 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 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 Index, any distribution fees or expenses, litigation expenses, fees payable to the Trust’s Board members who are not “interested persons” (as defined in the 1940 Act) of the Trust (the “Independent Trustees”) or the Adviser, expenses incurred in connection with the Board members’ services, including travel expenses and legal fees of counsel for the Independent Trustees, acquired fund fees and expenses, if any, and extraordinary expenses.

To the extent a Fund invests in other investment companies, the expenses shown 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 such investment companies’ expenses are included in the realized and unrealized gain or loss on the investments in the investment companies.

F. Dividends and Distributions to Shareholders

Each Fund declares and pays dividends from net investment income, if any, to its shareholders quarterly and records such dividends on ex-dividend date. Generally, each Fund distributes net realized taxable capital gains, if any, annually in cash and records them on ex-dividend date. Such distributions on a tax basis are determined in conformity with federal 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 year-end.

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G. Securities Lending

During the fiscal year ended April 30, 2015, Fundamental Pure Mid Value Portfolio, Fundamental Pure Small Growth Portfolio, Fundamental Pure Small Value Portfolio, and Zacks Micro Cap Portfolio participated in securities lending. Each Fund loaned portfolio securities having a market value up to one-third of each Fund’s total assets. Such loans are secured by cash collateral equal to no less than 102% (105% for international) of the market value of the loaned securities determined daily by the securities lending provider. Cash collateral received in connection with these loans is invested in an affiliated money market fund and is shown as such on the Schedule of Investments. It is the policy of these Funds to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. Lending securities entails a risk of loss to a Fund if, and to the extent that, the market value of the securities loaned were to increase, and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. A Fund could experience delays and costs in gaining access to the collateral. A Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, are included in Securities lending income on the Statements of Operations. The aggregate value of securities out on loan, if any, is shown on the Statements of Assets and Liabilities.

Note 3. Investment Advisory Agreement and Other Agreements

The Trust has entered into an Investment Advisory Agreement with the Adviser on behalf of each Fund, pursuant to which the Adviser has overall responsibility for the selection and ongoing monitoring of the Funds’ investments, managing the Funds’ business affairs and providing certain clerical, bookkeeping and other administrative services. Pursuant to that Investment Advisory Agreement, each Fund (except for Dynamic Large Cap Growth Portfolio, Dynamic Large Cap Value Portfolio and Zacks Micro Cap Portfolio) has agreed to pay the Adviser an annual fee of 0.29% of the Fund’s average daily net assets. Each of Dynamic Large Cap Growth Portfolio, Dynamic Large Cap Value Portfolio and Zacks Micro Cap Portfolio has agreed to pay the Adviser an annual fee of 0.50% of the Fund’s average daily net assets.

The Trust also has entered into an Amended and Restated Excess Expense Agreement (the “Expense Agreement”) with the Adviser on behalf of each Fund, pursuant to which the Adviser has agreed to waive fees and/or pay Fund expenses to the extent necessary to prevent the operating expenses (excluding interest expenses, brokerage commissions and other trading expenses, offering costs, taxes, acquired fund fees and expenses, if any, and extraordinary expenses) of each Fund (except for Dynamic Large Cap Growth Portfolio, Dynamic Large Cap Value Portfolio and Zacks Micro Cap Portfolio) from exceeding 0.39% of the Fund’s average daily net assets per year (the “Expense Cap”), through at least August 31, 2016. The Expense Cap for each of Dynamic Large Cap Growth Portfolio, Dynamic Large Cap Value Portfolio and Zacks Micro Cap Portfolio is 0.60% of the Fund’s average daily net assets per year, through at least August 31, 2016, and sub-licensing fees are excluded from the expenses subject to the Expense Cap for these Funds in addition to the excluded expenses above. Offering costs excluded from each Expense Cap for each Fund 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. Unless the Adviser continues the Expense Agreement, it will terminate on August 31, 2016. The Expense Agreement cannot be terminated during its term. The Adviser did not waive fees and/or pay Fund expenses during the period under this Expense Cap for Dynamic Large Cap Growth Portfolio and Dynamic Large Cap Value Portfolio.

Further, through August 31, 2017, the Adviser has contractually agreed to waive a portion of each Fund’s management fee in an amount equal to 100% of the net advisory fees an affiliate of the Adviser receives that are attributable to certain of the Fund’s investments in money market funds managed by that affiliate (excluding investments of cash collateral from securities lending). The Adviser cannot discontinue this waiver prior to its expiration. This agreement is not subject to recapture by the Adviser.

For the fiscal year ended April 30, 2015, the Adviser waived fees and/or paid Fund expenses for each Fund in the following amounts:

Dynamic Large Cap Growth Portfolio	$	252
Dynamic Large Cap Value Portfolio		771
Fundamental Pure Large Core Portfolio		76,285
Fundamental Pure Large Growth Portfolio		45,676
Fundamental Pure Large Value Portfolio		79,862
Fundamental Pure Mid Core Portfolio		80,153
Fundamental Pure Mid Growth Portfolio		64,395
Fundamental Pure Mid Value Portfolio		86,879
Fundamental Pure Small Core Portfolio		91,689
Fundamental Pure Small Growth Portfolio		93,211
Fundamental Pure Small Value Portfolio		109,115
Zacks Micro Cap Portfolio		77,182

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The Expense Agreement provides that the fees waived or expenses borne by the Adviser are subject to recapture by the Adviser for up to three years from the date the fee was waived or expense was borne by the Adviser, but no recapture payment will be made by a Fund if it would result in the Fund exceeding its Expense Cap as specified above.

For the following Funds, the amounts available for potential future recapture by the Adviser under the Expense Agreement and the expiration schedule at April 30, 2015 are as follows:

	Total Potential Recapture Amounts		Potential Recapture Amounts Expiring
			4/30/16		4/30/17		4/30/18
Fundamental Pure Large Core Portfolio	$	253,833	$	105,264	$	72,372	$	76,197
Fundamental Pure Large Growth Portfolio		195,202		94,097		55,612		45,493
Fundamental Pure Large Value Portfolio		260,532		99,141		81,582		79,809
Fundamental Pure Mid Core Portfolio		269,387		109,592		79,739		80,056
Fundamental Pure Mid Growth Portfolio		234,702		117,856		52,601		64,245
Fundamental Pure Mid Value Portfolio		297,131		125,577		84,721		86,833
Fundamental Pure Small Core Portfolio		292,861		114,500		86,766		91,595
Fundamental Pure Small Growth Portfolio		324,187		142,898		88,188		93,101
Fundamental Pure Small Value Portfolio		342,645		145,112		88,541		108,992
Zacks Micro Cap Portfolio		213,580		86,324		50,214		77,042

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 Funds are not charged any fees pursuant to the Distribution Agreement. The Distributor is an affiliate of the Adviser.

The Adviser has entered into a licensing agreement for each Fund with the following entities (each, a “Licensor”):

Fund	Licensor
Dynamic Large Cap Growth Portfolio	NYSE Arca, Inc.
Dynamic Large Cap Value Portfolio	NYSE Arca, Inc.
Fundamental Pure Large Core Portfolio	Research Affiliates, LLC
Fundamental Pure Large Growth Portfolio	Research Affiliates, LLC
Fundamental Pure Large Value Portfolio	Research Affiliates, LLC
Fundamental Pure Mid Core Portfolio	Research Affiliates, LLC
Fundamental Pure Mid Growth Portfolio	Research Affiliates, LLC
Fundamental Pure Mid Value Portfolio	Research Affiliates, LLC
Fundamental Pure Small Core Portfolio	Research Affiliates, LLC
Fundamental Pure Small Growth Portfolio	Research Affiliates, LLC
Fundamental Pure Small Value Portfolio	Research Affiliates, LLC
Zacks Micro Cap Portfolio	Zacks Investment Research

Each Underlying Index name trademark is owned by its respective Licensor. These trademarks have been licensed to the Adviser for use by the Funds. Each Fund is entitled to use its Underlying Index pursuant to the Trust’s sub-licensing agreement with the Adviser. The Funds are required to pay the sub-licensing fees that are shown on the Statements of Operations. 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 the Funds.

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

Note 4. Investments in Affiliates

The Adviser and Invesco Mortgage Capital, Inc. REIT are wholly-owned subsidiaries of Invesco Ltd., and therefore Invesco Ltd. and Invesco Mortgage Capital, Inc. REIT are considered to be affiliated with the Funds. The table below shows certain Funds’ transactions in, and earnings from, investments in affiliates for the fiscal year ended April 30, 2015.

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Fundamental Pure Mid Core Portfolio

	Value April 30, 2014		Purchases at Cost		Proceeds from Sales			Change in Unrealized Appreciation		Realized Gain		Value April 30, 2015		Dividend Income
Invesco Ltd.	$	353,579	$	106,728	$	(92,735	)	$	35,203	$	20,703	$	423,478	$	9,076

Fundamental Pure Mid Growth Portfolio

	Value April 30, 2014		Purchases at Cost		Proceeds from Sales			Change in Unrealized Appreciation (Depreciation)			Realized Gain (Loss)			Value April 30, 2015		Dividend Income
Invesco Mortgage Capital, Inc. REIT	$	417,084	$	8,329	$	(48,808	)	$	(27,001	)	$	(2,041	)	$	347,563	$	45,305

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 a 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.

Except for the Funds listed below, as of April 30, 2015, all of the securities in each Fund were valued based on Level 1 inputs (see the Schedules of Investments for security categories). 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.

	Investments in Securities
	Level 1		Level 2		Level 3		Total
Fundamental Pure Small Growth Portfolio
Equity Securities	$	33,567,311	$	0	$	—	$	33,567,311
Fundamental Pure Small Value Portfolio
Equity Securities	$	73,673,715	$	—	$	66,629	$	73,740,344
Zacks Micro Cap Portfolio
Equity Securities	$	29,246,962	$	—	$	2,209	$	29,249,171

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, 2015 and 2014:

	2015		2014
	Ordinary Income		Ordinary Income		Long-Term Capital Gains
Dynamic Large Cap Growth Portfolio	$	1,697,893	$	1,108,791	$	—
Dynamic Large Cap Value Portfolio		18,202,206		13,897,107		—
Fundamental Pure Large Core Portfolio		759,003		612,506		—
Fundamental Pure Large Growth Portfolio		2,084,013		2,133,201		65,835
Fundamental Pure Large Value Portfolio		752,115		263,618		7,335

98

	2015		2014
	Ordinary Income		Ordinary Income		Long-Term Capital Gains
Fundamental Pure Mid Core Portfolio	$	386,382	$	309,864	$	—
Fundamental Pure Mid Growth Portfolio		1,325,669		1,178,058		—
Fundamental Pure Mid Value Portfolio		710,318		549,786		—
Fundamental Pure Small Core Portfolio		180,742		198,389		—
Fundamental Pure Small Growth Portfolio		404,987		268,388		—
Fundamental Pure Small Value Portfolio		1,010,155		729,968		—
Zacks Micro Cap Portfolio		822,121		512,267		—

Tax Components of Net Assets at Fiscal Year-End:

	Undistributed Ordinary Income		Temporary Book/Tax Differences			Net Unrealized Appreciation— Investment Securities		Net Unrealized Appreciation (Depreciation)— Other Investments			Capital Loss Carryforwards			Post-October Capital Losses Deferrals*			Shares of Beneficial Interest		Total Net Assets
Dynamic Large Cap Growth Portfolio	$	460,299	$	(28,025	)	$	33,962,379		—		$	(250,966,076	)	$	(2,249,876	)	$	546,400,708	$	327,579,409
Dynamic Large Cap Value Portfolio		3,120,356		(35,041	)		62,759,396		—			(145,355,549	)		(10,797,284	)		1,177,651,020		1,087,342,898
Fundamental Pure Large Core Portfolio		95,211		(12,841	)		7,895,156		—			(10,492,653	)		—			44,763,739		42,248,612
Fundamental Pure Large Growth Portfolio		303,639		(8,640	)		31,198,330		—			(969,474	)		—			114,978,251		145,502,106
Fundamental Pure Large Value Portfolio		120,376		(7,404	)		2,853,029		—			(11,234	)		(833	)		38,393,574		41,347,508
Fundamental Pure Mid Core Portfolio		60,413		(12,313	)		4,893,778		—			(10,472,371	)		—			39,822,746		34,292,253
Fundamental Pure Mid Growth Portfolio		253,629		(19,792	)		16,935,747		—			(163,473,317	)		(18,148	)		234,192,319		87,870,438
Fundamental Pure Mid Value Portfolio		137,601		(13,702	)		9,388,548		(14	)		(41,952,460	)		—			84,777,673		52,337,646
Fundamental Pure Small Core Portfolio		39,202		(11,929	)		2,217,866		—			(9,784,565	)		—			23,692,159		16,152,733
Fundamental Pure Small Growth Portfolio		93,218		(13,189	)		4,998,808		—			(37,099,000	)		(27,847	)		64,838,654		32,790,644
Fundamental Pure Small Value Portfolio		261,673		(14,832	)		8,588,413		—			(40,465,486	)		(142,620	)		103,865,705		72,092,853
Zacks Micro Cap Portfolio		96,755		(14,535	)		1,392,258		—			(79,393,172	)		(3,715,530	)		110,553,847		28,919,623

* The Funds will elect to defer net capital losses incurred after October 31 (“Post-October Capital Losses”) within the taxable year that are deemed to arise on the first business day of each Fund’s next taxable year.

Capital loss carryforwards are calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforwards actually available for the Funds to utilize. Capital losses generated in years beginning after December 22, 2010 can be carried forward for an unlimited period, whereas previous losses expire in eight tax years. Capital losses with an expiration period may not be used to offset capital gains until all net capital losses without an expiration date have been utilized. Capital loss carryforwards with no expiration date will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.

99

The following table presents available capital loss carryforwards and expiration dates for each Fund as of April 30, 2015:

									Post-effective/no expiration
	2016		2017		2018		2019		Short-Term		Long-Term		Total*		Expired
Dynamic Large Cap Growth Portfolio	$	14,024,455	$	68,715,641	$	131,638,879	$	15,986,258	$	20,582,809	$	18,034	$	250,966,076	$	10,916,066
Dynamic Large Cap Value Portfolio		2,783,761		22,558,581		56,819,182		17,964,198		38,020,548		7,209,279		145,355,549		1,378,743
Fundamental Pure Large Core Portfolio		87,112		2,328,337		5,621,834		1,626,267		829,103		—		10,492,653		—
Fundamental Pure Large Growth Portfolio		—		—		—		—		24,931		944,543		969,474		—
Fundamental Pure Large Value Portfolio		—		—		—		—		9,836		1,398		11,234		—
Fundamental Pure Mid Core Portfolio		628,828		3,815,763		3,611,366		741,893		1,465,270		209,251		10,472,371		—
Fundamental Pure Mid Growth Portfolio		5,112,579		54,769,394		82,364,246		12,021,724		7,035,157		2,170,217		163,473,317		8,055,857
Fundamental Pure Mid Value Portfolio		5,347,255		12,697,113		18,996,863		2,751,107		2,160,122		—		41,952,460		2,384,765
Fundamental Pure Small Core Portfolio		1,028,300		2,738,120		2,009,294		2,491,519		1,256,052		261,280		9,784,565		—
Fundamental Pure Small Growth Portfolio		6,666,558		9,888,431		10,392,627		4,547,805		4,862,993		740,586		37,099,000		13,094,039
Fundamental Pure Small Value Portfolio		8,615,687		16,547,947		9,588,502		5,376,983		336,367		—		40,465,486		3,929,009
Zacks Micro Cap Portfolio		14,330,930		28,782,755		12,380,833		7,234,973		15,688,279		975,402		79,393,172		15,172,527

* Capital loss carryforwards as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization.

Note 7. Investment Transactions

For the fiscal year ended April 30, 2015, the cost of securities purchased and proceeds from sales of securities (other than short-term securities, U.S. Treasury obligations, money market funds and in-kind transactions, if any) were as follows:

	Purchases		Sales
Dynamic Large Cap Growth Portfolio	$	416,125,803	$	417,359,280
Dynamic Large Cap Value Portfolio		773,989,345		767,396,811
Fundamental Pure Large Core Portfolio		1,323,574		1,269,861
Fundamental Pure Large Growth Portfolio		2,792,515		2,075,045
Fundamental Pure Large Value Portfolio		891,558		767,746
Fundamental Pure Mid Core Portfolio		1,450,779		1,403,273
Fundamental Pure Mid Growth Portfolio		2,362,187		2,256,952
Fundamental Pure Mid Value Portfolio		1,878,353		1,768,669
Fundamental Pure Small Core Portfolio		1,086,121		1,010,018
Fundamental Pure Small Growth Portfolio		1,893,501		1,929,434
Fundamental Pure Small Value Portfolio		3,993,900		3,679,155
Zacks Micro Cap Portfolio		45,228,553		45,557,159

For the fiscal year ended April 30, 2015, in-kind transactions associated with creations and redemptions were as follows:

	Cost of Securities Received		Value of Securities Delivered
Dynamic Large Cap Growth Portfolio	$	345,813,120	$	348,101,087
Dynamic Large Cap Value Portfolio		912,612,251		687,683,240
Fundamental Pure Large Core Portfolio		1,925,041		3,751,879
Fundamental Pure Large Growth Portfolio		28,194,966		6,617,977

100

	Cost of Securities Received		Value of Securities Delivered
Fundamental Pure Large Value Portfolio	$	25,392,093	$	—
Fundamental Pure Mid Core Portfolio		8,075,013		7,391,714
Fundamental Pure Mid Growth Portfolio		1,625,752		10,843,528
Fundamental Pure Mid Value Portfolio		6,646,020		—
Fundamental Pure Small Growth Portfolio		1,286,302		—
Fundamental Pure Small Value Portfolio		6,254,932		2,593,185
Zacks Micro Cap Portfolio		22,407,635		54,146,737

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

At April 30, 2015, the aggregate cost and the net unrealized appreciation (depreciation) of investments for tax purposes were as follows:

	Gross Unrealized Appreciation		Gross Unrealized (Depreciation)			Net Unrealized Appreciation		Cost
Dynamic Large Cap Growth Portfolio	$	37,343,657	$	(3,381,278	)	$	33,962,379	$	293,715,828
Dynamic Large Cap Value Portfolio		86,429,267		(23,669,871	)		62,759,396		1,024,181,145
Fundamental Pure Large Core Portfolio		8,366,590		(471,434	)		7,895,156		34,398,736
Fundamental Pure Large Growth Portfolio		31,560,057		(361,727	)		31,198,330		114,393,282
Fundamental Pure Large Value Portfolio		3,803,899		(950,870	)		2,853,029		38,500,215
Fundamental Pure Mid Core Portfolio		5,777,951		(884,173	)		4,893,778		29,469,266
Fundamental Pure Mid Growth Portfolio		19,670,922		(2,735,175	)		16,935,747		71,011,754
Fundamental Pure Mid Value Portfolio		11,810,772		(2,422,224	)		9,388,548		44,688,531
Fundamental Pure Small Core Portfolio		2,863,875		(646,009	)		2,217,866		14,019,970
Fundamental Pure Small Growth Portfolio		7,267,801		(2,268,993	)		4,998,808		28,568,503
Fundamental Pure Small Value Portfolio		13,823,995		(5,235,582	)		8,588,413		65,151,931
Zacks Micro Cap Portfolio		2,367,225		(974,967	)		1,392,258		27,856,913

Note 8. Reclassification of Permanent Differences

Primarily as a result of differing book/tax treatment of in-kind transactions and expired capital loss carryforwards on April 30, 2015, amounts were reclassified between undistributed net investment income, 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, 2015, the reclassifications were as follows:

	Undistributed Net Investment Income			Undistributed Net Realized Gain (Loss)			Shares of Beneficial Interest
Dynamic Large Cap Growth Portfolio	$	92,211		$	(30,855,776	)	$	30,763,565
Dynamic Large Cap Value Portfolio		—			(112,233,611	)		112,233,611
Fundamental Pure Large Core Portfolio		—			(792,031	)		792,031
Fundamental Pure Large Growth Portfolio		—			(1,997,385	)		1,997,385
Fundamental Pure Mid Core Portfolio		—			(1,293,548	)		1,293,548
Fundamental Pure Mid Growth Portfolio		—			5,890,266			(5,890,266	)
Fundamental Pure Mid Value Portfolio		(9,253	)		2,394,018			(2,384,765	)
Fundamental Pure Small Core Portfolio		856			(856	)		—
Fundamental Pure Small Growth Portfolio		760			13,094,210			(13,094,970	)
Fundamental Pure Small Value Portfolio		(16,994	)		3,155,045			(3,138,051	)
Zacks Micro Cap Portfolio		11,069			8,870,923			(8,881,992	)

Note 9. Trustees’ and Officer’s Fees

Trustees’ and Officer’s Fees include amounts accrued by the Funds to pay remuneration to the Independent Trustees and an Officer of the Trust. The Trustee who is an “interested person” of the Trust does not receive any Trustees’ fees.

101

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. Obligations under the Plan represent unsecured claims against the general assets of the Funds.

Note 10. Capital

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

To the extent that the Funds permit transactions in exchange for Deposit Securities, each Fund may issue Shares in advance of receipt of Deposit Securities subject to various conditions, including a requirement to maintain on deposit with the Trust cash at least equal to 105% of the market value of the missing Deposit Securities. In accordance with the Trust’s Participant Agreement, Creation Units will be issued to an Authorized Participant, notwithstanding the fact that the corresponding Deposit Securities have not been received in part or in whole, in reliance on the undertaking of the Authorized Participant to deliver the missing Deposit Securities as soon as possible, which undertaking shall be secured by the Authorized Participant’s delivery and maintenance of collateral consisting of cash in the form of U.S. dollars in immediately available funds having a value (marked-to-market daily) at least equal to 105%, which the Adviser may change from time to time, of the value of the missing Deposit Securities.

Transactions in each Fund’s Shares are disclosed in detail in the Statements of Changes in Net Assets.

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.

Note 12. Subsequent Event

The Board of Trustees of the Trust (the “Board”) approved a change to the ticker and a reduction of the management fee and expense cap for Fundamental Pure Large Core Portfolio, Fundamental Pure Mid Core Portfolio and Fundamental Pure Small Core Portfolio.

In addition, the Board approved changes to the name, investment objective, principal investment strategy, investment policy and underlying index for each of the Funds listed below. These changes went into effect as of the close of markets on May 22, 2015.

Previous Fund Name	New Fund Name	Previous Index Name	New Index Name	Previous Ticker	New Ticker	Management Fee Reduction	Expense Cap Change
PowerShares Fundamental Pure Large Core Portfolio	PowerShares Russell Top 200 Equal Weight Portfolio	RAFI® Fundamental Large Core Index	Russell Top 200 Equal Weight Index	PXLC	EQWL	0.29% to 0.25%	0.39% to 0.25%
PowerShares Fundamental Pure Large Growth Portfolio	PowerShares Russell Top 200 Pure Growth Portfolio	RAFI® Fundamental Large Growth Index	Russell Top 200 Pure Growth Index	No Ticker change	No Ticker change	No change	No change
PowerShares Fundamental Pure Large Value Portfolio	PowerShares Russell Top 200 Pure Value Portfolio	RAFI® Fundamental Large Value Index	Russell Top 200 Pure Value Index	No Ticker change	No Ticker change	No change	No change
PowerShares Fundamental Pure Mid Core Portfolio	PowerShares Russell Midcap Equal Weight Portfolio	RAFI® Fundamental Mid Core Index	Russell Midcap Equal Weight Index	PXMC	EQWM	0.29% to 0.25%	0.39% to 0.25%
PowerShares Fundamental Pure Mid Growth Portfolio	PowerShares Russell Midcap Pure Growth Portfolio	RAFI® Fundamental Mid Growth Index	Russell Midcap Pure Growth Index	No Ticker change	No Ticker change	No change	No change
PowerShares Fundamental Pure Mid Value Portfolio	PowerShares Russell Midcap Pure Value Portfolio	RAFI® Fundamental Mid Value Index	Russell Midcap Pure Value Index	No Ticker change	No Ticker change	No change	No change

102

Previous Fund Name	New Fund Name	Previous Index Name	New Index Name	Previous Ticker	New Ticker	Management Fee Reduction	Expense Cap Change
PowerShares Fundamental Pure Small Core Portfolio	PowerShares Russell 2000 Equal Weight Portfolio	RAFI® Fundamental Small Core Index	Russell 2000 Equal Weight Index	PXSC	EQWS	0.29% to 0.25%	0.39% to 0.25%
PowerShares Fundamental Pure Small Growth Portfolio	PowerShares Russell 2000 Pure Growth Portfolio	RAFI® Fundamental Small Growth Index	Russell 2000 Pure Growth Index	No Ticker change	No Ticker change	No change	No change
PowerShares Fundamental Pure Small Value Portfolio	PowerShares Russell 2000 Pure Value Portfolio	RAFI® Fundamental Small Value Index	Russell 2000 Pure Value Index	No Ticker change	No Ticker change	No change	No change

103

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 PowerShares Dynamic Large Cap Growth Portfolio, PowerShares Dynamic Large Cap Value Portfolio, PowerShares Fundamental Pure Large Core Portfolio, PowerShares Fundamental Pure Large Growth Portfolio, PowerShares Fundamental Pure Large Value Portfolio, PowerShares Fundamental Pure Mid Core Portfolio, PowerShares Fundamental Pure Mid Growth Portfolio, PowerShares Fundamental Pure Mid Value Portfolio, PowerShares Fundamental Pure Small Core Portfolio, PowerShares Fundamental Pure Small Growth Portfolio, PowerShares Fundamental Pure Small Value Portfolio and PowerShares Zacks Micro Cap Portfolio (each an individual portfolio of PowerShares Exchange-Traded Fund Trust, hereafter referred to as the “Funds”) at April 30, 2015, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period then ended 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 Funds’ 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, 2015 by correspondence with the custodian and brokers, and the application of alternative auditing procedures where confirmations of security purchases have not been received, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

Chicago, IL

June 24, 2015

104

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, 2015.

In addition to the fees and expenses which the PowerShares Fundamental Pure Mid Value Portfolio, PowerShares Fundamental Pure Small Core Portfolio, PowerShares Fundamental Pure Small Growth Portfolio and PowerShares Zacks Micro Cap Portfolio (collectively, the “Portfolios”) bear directly, the Portfolios indirectly bear a pro rata share of the fees and expenses of the investment companies in which the Portfolios invest. The amount of fees and expenses incurred indirectly by the Portfolios will vary because the investment companies have varied expenses and fee levels and the Portfolios may own different proportions of the investment companies at different times. Estimated investment companies’ expenses are not expenses that are incurred directly by the Portfolios. They are expenses that are incurred directly by the investment companies and are deducted from the value of the investment companies the Portfolios invest in. The effect of the estimated investment companies’ expenses that the Portfolios bear indirectly are included in each Portfolio’s total returns.

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, expenses shown in the table do not include the expenses of the underlying funds, which are borne indirectly by the Fund. If transaction costs and indirect expenses were included, your costs would have been higher.

	Beginning Account Value November 1, 2014		Ending Account Value April 30, 2015		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During the Six-Month Period(1)
PowerShares Dynamic Large Cap Growth Portfolio (PWB)
Actual	$	1,000.00	$	1,072.95		0.57	%	$	2.93
Hypothetical (5% return before expenses)		1,000.00		1,021.97		0.57			2.86
PowerShares Dynamic Large Cap Value Portfolio (PWV)
Actual		1,000.00		1,034.27		0.57			2.88
Hypothetical (5% return before expenses)		1,000.00		1,021.97		0.57			2.86
PowerShares Fundamental Pure Large Core Portfolio (PXLC)
Actual		1,000.00		1,035.66		0.39			1.97
Hypothetical (5% return before expenses)		1,000.00		1,022.86		0.39			1.96
PowerShares Fundamental Pure Large Growth Portfolio (PXLG)
Actual		1,000.00		1,060.55		0.39			1.99
Hypothetical (5% return before expenses)		1,000.00		1,022.86		0.39			1.96

105

Fees and Expenses (continued)

	Beginning Account Value November 1, 2014		Ending Account Value April 30, 2015		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During the Six-Month Period(1)
PowerShares Fundamental Pure Large Value Portfolio (PXLV)
Actual	$	1,000.00	$	1,012.72		0.39	%	$	1.95
Hypothetical (5% return before expenses)		1,000.00		1,022.86		0.39			1.96
PowerShares Fundamental Pure Mid Core Portfolio (PXMC)
Actual		1,000.00		1,055.54		0.39			1.99
Hypothetical (5% return before expenses)		1,000.00		1,022.86		0.39			1.96
PowerShares Fundamental Pure Mid Growth Portfolio (PXMG)
Actual		1,000.00		1,037.51		0.39			1.97
Hypothetical (5% return before expenses)		1,000.00		1,022.86		0.39			1.96
PowerShares Fundamental Pure Mid Value Portfolio (PXMV)
Actual		1,000.00		1,035.85		0.39			1.97
Hypothetical (5% return before expenses)		1,000.00		1,022.86		0.39			1.96
PowerShares Fundamental Pure Small Core Portfolio (PXSC)
Actual		1,000.00		1,050.28		0.39			1.98
Hypothetical (5% return before expenses)		1,000.00		1,022.86		0.39			1.96
PowerShares Fundamental Pure Small Growth Portfolio (PXSG)
Actual		1,000.00		1,046.25		0.39			1.98
Hypothetical (5% return before expenses)		1,000.00		1,022.86		0.39			1.96
PowerShares Fundamental Pure Small Value Portfolio (PXSV)
Actual		1,000.00		1,032.14		0.39			1.97
Hypothetical (5% return before expenses)		1,000.00		1,022.86		0.39			1.96
PowerShares Zacks Micro Cap Portfolio (PZI)
Actual		1,000.00		996.29		0.70			3.46
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, 2015. Expenses are calculated by multiplying the Fund’s annualized expense ratio by the average account value for the period, then multiplying the result by 181/365. Expense ratios for the most recent six-month period may differ from expense ratios based on the annualized data in the Financial Highlights.

106

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 advisers.

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, 2015:

Federal Income Tax Information

	Qualified Dividend Income*			Dividends-Received Deduction*
Dynamic Large Cap Growth Portfolio		100	%		100	%
Dynamic Large Cap Value Portfolio		100	%		100	%
Fundamental Pure Large Core Portfolio		100	%		100	%
Fundamental Pure Large Growth Portfolio		100	%		100	%
Fundamental Pure Large Value Portfolio		100	%		100	%
Fundamental Pure Mid Core Portfolio		100	%		100	%
Fundamental Pure Mid Growth Portfolio		93	%		93	%
Fundamental Pure Mid Value Portfolio		100	%		100	%
Fundamental Pure Small Core Portfolio		100	%		100	%
Fundamental Pure Small Growth Portfolio		100	%		98	%
Fundamental Pure Small Value Portfolio		85	%		85	%
Zacks Micro Cap Portfolio		100	%		100	%

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

107

Trustees and Officers

The Independent Trustees 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, 2015.

Name, Address and Year of Birth 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 During the Past 5 Years
Ronn R. Bagge—1958 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	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).	120	None
Todd J. Barre—1957 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	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.	120	None
Marc M. Kole—1960 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Trustee	Since 2006	Retired. Formerly, Chief Financial Officer, Hope Network (social services) (2008-2012); Assistant Vice President and Controller, Priority Health (health insurance) (2005-2008); Senior Vice President of Finance, United Healthcare (2004-2005); Chief Accounting Officer, Senior Vice President of Finance, Oxford Health Plans (2000-2004); Audit Partner, Arthur Andersen LLP (1996-2000).	120	None
Yung Bong Lim—1964 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Trustee	Since 2013	Managing Partner, Residential Dynamics Group LLC (2008-Present); formerly, Managing Director, Citadel Investment Group, L.L.C. (1999-2007).	120	None
Philip M. Nussbaum—1961 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Trustee	Since 2003	Chairman, Performance Trust Capital Partners (2004-Present).	120	None

* This is the date the Independent 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, 2015, the “Fund Family” consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 67 portfolios advised by the Adviser.

108

Trustees and Officers (continued)

Name, Address and Year of Birth 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 During the Past 5 Years
Gary R. Wicker—1961 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Trustee	Since 2013	Senior Vice President of Global Finance and Chief Financial Officer at RBC Ministries (publishing company) (2013-Present); formerly, Executive Vice President and Chief Financial Officer, Zondervan Publishing (A division of Harper Collins/NewsCorp) (2007-2012); Senior Vice President and Group Controller (2005-2006), Senior Vice President and Chief Financial Officer (2003-2004), Chief Financial Officer (2001-2003), Vice President, Finance and Controller (1999-2001) and Assistant Controller (1997-1999), divisions of The Thomson Corporation (information services provider).	120	None
Donald H. Wilson—1959 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Chairman of the Board and Trustee	Chairman since 2012; Trustee since 2006	Chairman, President and Chief Executive Officer, Community Financial Shares, Inc. and Community Bank—Wheaton/Glen Ellyn (subsidiary) (2013-Present); Chairman and Chief Executive Officer, Stone Pillar Advisors, 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).	120	None

* This is the date the Independent 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, 2015, the “Fund Family” consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 67 portfolios advised by the Adviser.

109

Trustees and Officers (continued)

The Trustee who is an “interested person” (the “Non-Independent Trustee”) 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 the Non-Independent Trustee and the other directorships, if any, held by the Non-Independent Trustee are shown below.

Name, Address and Year of Birth of Non-Independent Trustee	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 Non-Independent Trustees	Other Directorships Held by Non-Independent Trustees During the Past 5 Years
Kevin M. Carome—1956 Invesco Ltd. Two Peachtree Pointe, 1555 Peachtree St., N.E., Suite 1800 Atlanta, GA 30309	Trustee	Since 2010	Senior Managing Director, Secretary and General Counsel, Invesco Ltd. (2006-Present); Director, Invesco Advisers, Inc. (2009-Present); Director, Invesco Finance PLC, INVESCO Funds Group, Inc., and Invesco Holding Company Limited; Director and Executive Vice President, Invesco Finance, Inc., Invesco Group Services, Inc., Invesco Investments (Bermuda) Ltd., Invesco North American Holdings, Inc., and IVZ, Inc. and Invesco Asset Management (Bermuda) Ltd.; Manager, Horizon Flight Works LLC; Director and Secretary, IVZ Bahamas Private Limited; formerly, Senior Vice President, Secretary and General Counsel, Invesco Advisers, 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.	120	None

* This is the date the Non-Independent 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, 2015, the Fund Complex consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 67 portfolios advised by the Adviser.

110

Trustees and Officers (continued)

Name, Address and Year of Birth of Executive Officers	Position(s) Held with Trust	Length of Time Served*	Principal Occupation(s) During Past 5 Years
Andrew Schlossberg—1974 Invesco Management Group, Inc. 11 Greenway Plaza, Suite 1000 Houston, TX 77046	President	Since 2009	President, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2009-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); Managing Director—U.S. Strategy and Marketing (2010-Present) and Principal Executive Officer (2015-Present), Invesco PowerShares Capital Management LLC; Managing Director, U.S. head of business strategy and chief marketing officer for Invesco Ltd. in the United States (2008-Present); and Senior Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser) (2009-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) and Director, Invesco Distributors, Inc. (2012-2015).
Peter Hubbard—1981 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Vice President	Since 2009	Vice President, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2009-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); 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).
David Warren—1957 Invesco Canada Ltd. 5140 Yonge Street Suite 800, Toronto, Ontario M2N 6X7	Vice President	Since 2009	Vice President, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2009-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); Managing Director—Chief Administrative Officer, Americas, Invesco PowerShares Capital Management LLC; Senior Vice President, Invesco Advisers, Inc. (2009-Present); Director, Executive Vice President and Chief Financial Officer, Invesco Inc. (2009-Present); Senior Vice President, Invesco Management Group, Inc. (2007-Present); Director, Executive Vice President and Chief Financial Officer, Invesco Canada Ltd. (formerly, Invesco Trimark Ltd.) and Chief Administrative Officer, North American Retail, Invesco Ltd. (2007-Present); Director, Invesco Canada Holdings Inc. (2002-Present), Invesco Corporate Class Inc., and Invesco Canada Fund Inc.; Director, Invesco Financial Services Ltd. and Trimark Investments Ltd. (2014-Present); formerly, Director, Executive Vice President and Chief Financial Officer, Invesco Canada Ltd. (formerly, Invesco Trimark Ltd.) (2000-2006).
Sheri Morris—1964 Invesco Management Group, Inc. 11 Greenway Plaza, Suite 1000 Houston, TX 77046	Vice President	Since 2012	Vice President, Treasurer and Principal Financial Officer, The Invesco Funds; Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser) (2009-Present) and Vice President, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2012-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); formerly, Treasurer, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust and PowerShares Actively Managed Exchange-Traded Fund Trust (2011-2013); Vice President, Invesco Aim Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc.; Assistant Vice President and Assistant Treasurer, The Invesco Funds and Assistant Vice President, Invesco Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc.

* This is the date the Officers began serving the Trust. Each Officer serves an indefinite term, until his or her successor is elected.

111

Trustees and Officers (continued)

Name, Address and Year of Birth of Executive Officers	Position(s) Held with Trust	Length of Time Served*	Principal Occupation(s) During Past 5 Years
Rudolf E. Reitmann—1971 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Vice President	Since 2013	Vice President, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2013-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); Head of Global Exchange Traded Funds Operations, Invesco PowerShares Capital Management LLC (2013-Present).
Daniel E. Draper—1968 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Vice President	Since 2013	Senior Vice President, Invesco Distributors, Inc. (2014-Present); Vice President, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2013-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); Managing Director, Invesco PowerShares Capital Management LLC (2013-Present); formerly, Managing Director, Credit Suisse Asset Management (2010-2013) and Lyxor Asset Management/Societe Generale (2007–2010).
Steven M. Hill—1964 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Vice President and Treasurer	Since 2013	Vice President and Treasurer of PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2013-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); Head of Global ETF Administration, Invesco PowerShares Capital Management LLC (2011-Present); Principal Financial and Accounting Officer—Investment Pools, Invesco PowerShares Capital Management LLC (2015-Present); formerly, Senior Managing Director and Chief Financial Officer, Destra Capital Management LLC and its subsidiaries (2010-2011); Chief Financial Officer, Destra Investment Trust and Destra Investment Trust II (2010-2011); Senior Managing Director, Claymore Securities, Inc. (2003-2010); and Chief Financial Officer, Claymore sponsored mutual funds (2003-2010).
Christopher Joe—1969 Invesco Management Group, Inc. 11 Greenway Plaza, Suite 1000 Houston, TX 77046	Chief Compliance Officer	Since 2012	Deputy Chief Compliance Officer of Invesco Advisers, Inc. (2014-Present); Chief Compliance Officer of PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2012-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); U.S. Compliance Director, Invesco, Ltd. (2006-Present); formerly, Chief Compliance Officer, Invesco Investment Advisers, LLC (registered investment adviser) (2010-2013).
Anna Paglia—1974 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Secretary	Since 2011	Secretary, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2011-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); Head of Legal, Invesco PowerShares Capital Management LLC (2010-Present); formerly, Partner, K&L Gates LLP (formerly, Bell Boyd & Lloyd LLP) (2007-2010); Associate Counsel at Barclays Global Investors Ltd. (2004-2006).

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 Officers began serving the Trust. Each Officer serves an indefinite term, until his or her successor is elected.

112

Board Considerations Regarding Continuation of Investment Advisory Agreement

At a meeting held on April 16, 2015, the Board of Trustees of the PowerShares Exchange-Traded Fund Trust (the “Trust”), including the Independent Trustees, approved the continuation of the Investment Advisory Agreement between Invesco PowerShares Capital Management LLC (the “Adviser”) and the Trust for the following 51 series (each, a “Fund” and collectively, the “Funds”):

PowerShares Aerospace & Defense Portfolio

PowerShares BuyBack Achievers™ Portfolio

PowerShares Cleantech™ Portfolio

PowerShares Dividend Achievers^TM Portfolio

PowerShares DWA Momentum Portfolio

PowerShares DWA Basic Materials Momentum Portfolio

PowerShares DWA Consumer Cyclicals Momentum Portfolio

PowerShares DWA Consumer Staples Momentum Portfolio

PowerShares DWA Energy Momentum Portfolio

PowerShares DWA Financial Momentum Portfolio

PowerShares DWA Healthcare Momentum Portfolio

PowerShares DWA Industrials Momentum Portfolio

PowerShares DWA NASDAQ Momentum Portfolio

PowerShares DWA Technology Momentum Portfolio

PowerShares DWA Utilities Momentum Portfolio

PowerShares Dynamic Biotechnology & Genome Portfolio

PowerShares Dynamic Building & Construction Portfolio

PowerShares Dynamic Energy Exploration & Production Portfolio

PowerShares Dynamic Food & Beverage Portfolio

PowerShares Dynamic Large Cap Growth Portfolio

PowerShares Dynamic Large Cap Value Portfolio

PowerShares Dynamic Leisure and Entertainment Portfolio

PowerShares Dynamic Market Portfolio

PowerShares Dynamic Media Portfolio

PowerShares Dynamic Networking Portfolio

PowerShares Dynamic Oil & Gas Services Portfolio

PowerShares Dynamic Pharmaceuticals Portfolio

PowerShares Dynamic Retail Portfolio

PowerShares Dynamic Semiconductors Portfolio

PowerShares Dynamic Software Portfolio

PowerShares Financial Preferred Portfolio

PowerShares FTSE RAFI US 1000 Portfolio

PowerShares FTSE RAFI US 1500 Small-Mid Portfolio

PowerShares Fundamental Pure Large Core Portfolio

PowerShares Fundamental Pure Large Growth Portfolio

PowerShares Fundamental Pure Large Value Portfolio

PowerShares Fundamental Pure Mid Core Portfolio

PowerShares Fundamental Pure Mid Growth Portfolio

PowerShares Fundamental Pure Mid Value Portfolio

PowerShares Fundamental Pure Small Core Portfolio

PowerShares Fundamental Pure Small Growth Portfolio

PowerShares Fundamental Pure Small Value Portfolio

PowerShares Global Listed Private Equity Portfolio

PowerShares Golden Dragon China Portfolio

PowerShares High Yield Equity Dividend Achievers ^TM Portfolio

PowerShares International Dividend Achievers^TM Portfolio

PowerShares S&P 500^® High Quality Portfolio

PowerShares Water Resources Portfolio

PowerShares WilderHill Clean Energy Portfolio

PowerShares WilderHill Progressive Energy Portfolio

PowerShares Zacks Micro Cap Portfolio

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 a Fund grows, (v) whether fee levels reflect any possible economies of scale for the benefit of Fund shareholders, (vi) comparisons of services rendered to and amounts paid by 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 staffing, including operational support 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 and/or oversight of execution of portfolio transactions on behalf of the Funds. The Trustees also reviewed information on the performance of the Funds and their underlying indexes for the one-year, three-year, five-year, ten-year and since-inception periods ended December 31, 2014, as applicable, including reports for each of those periods on the correlation and tracking error between each Fund’s performance and the performance of its underlying index, as well as the Adviser’s analysis of the tracking error between PowerShares Global Listed Private Equity Portfolio and its underlying index. In reviewing the tracking error report, the Trustees considered information provided by Ibbotson Associates, a consultant to the Independent Trustees, with respect to general expected tracking error ranges and various explanations for any tracking error. The Trustees noted that for each applicable period the

113

Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)

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, effort and resources 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 advisory fee and net expense ratio, as compared to information compiled by the Adviser from Lipper Inc. databases on the advisory fees and net expense ratios of comparable exchange-traded funds (“ETFs”), open-end (non-ETF) index funds and open-end (non-ETF) actively-managed funds. The Trustees noted that the annual advisory fee charged to each Fund is:

— 0.50% of the Fund’s average daily net assets for each Fund other than PowerShares Dividend Achievers™ Portfolio, PowerShares High Yield Equity Dividend Achievers™ Portfolio, PowerShares International Dividend Achievers™ Portfolio, PowerShares FTSE RAFI US 1000 Portfolio, PowerShares FTSE RAFI US 1500 Small-Mid Portfolio, PowerShares Fundamental Pure Large Core Portfolio, PowerShares Fundamental Pure Large Growth Portfolio, PowerShares Fundamental Pure Large Value Portfolio, PowerShares Fundamental Pure Mid Core Portfolio, PowerShares Fundamental Pure Mid Growth Portfolio, PowerShares Fundamental Pure Mid Value Portfolio, PowerShares Fundamental Pure Small Core Portfolio, PowerShares Fundamental Pure Small Growth Portfolio, PowerShares Fundamental Pure Small Value Portfolio and PowerShares S&P 500^® High Quality Portfolio;

— 0.40% of the Fund’s average daily net assets for each of PowerShares Dividend Achievers™ Portfolio, PowerShares High Yield Equity Dividend Achievers™ Portfolio and PowerShares International Dividend Achievers™ Portfolio; and

— 0.29% of the Fund’s average daily net assets for each of PowerShares FTSE RAFI US 1000 Portfolio, PowerShares FTSE RAFI US 1500 Small-Mid Portfolio, PowerShares Fundamental Pure Large Core Portfolio¹, PowerShares Fundamental Pure Large Growth Portfolio, PowerShares Fundamental Pure Large Value Portfolio, PowerShares Fundamental Pure Mid Core Portfolio¹, PowerShares Fundamental Pure Mid Growth Portfolio, PowerShares Fundamental Pure Mid Value Portfolio, PowerShares Fundamental Pure Small Core Portfolio¹, PowerShares Fundamental Pure Small Growth Portfolio, PowerShares Fundamental Pure Small Value Portfolio and PowerShares S&P 500^® High Quality Portfolio.

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, 2016, as set forth below:

— 0.60%, excluding interest expenses, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses, for each of PowerShares DWA NASDAQ Momentum Portfolio and PowerShares Dynamic Market Portfolio;

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

— 0.39%, excluding interest expenses, offering costs, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses, for each of PowerShares FTSE RAFI US 1000 Portfolio, PowerShares FTSE RAFI US 1500 Small-Mid Portfolio, PowerShares Fundamental Pure Large Core Portfolio², PowerShares Fundamental Pure Large Growth Portfolio, PowerShares Fundamental Pure Large Value Portfolio, PowerShares Fundamental Pure Mid Core Portfolio², PowerShares Fundamental Pure Mid Growth Portfolio, PowerShares Fundamental Pure Mid Value Portfolio, PowerShares Fundamental Pure Small Core Portfolio², PowerShares Fundamental Pure Small Growth Portfolio and PowerShares Fundamental Pure Small Value Portfolio;

— 0.29%, excluding interest expenses, offering costs, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses, for PowerShares S&P 500^® High Quality Portfolio;

¹  The annual management fee for PowerShares Fundamental Pure Large Core Portfolio, PowerShares Fundamental Pure Mid Core Portfolio and PowerShares Fundamental Pure Small Core Portfolio will be reduced to 0.25% of each Fund’s average daily net assets, effective May 22, 2015.

²  The Expense Cap for PowerShares Fundamental Pure Large Core Portfolio, PowerShares Fundamental Pure Mid Core Portfolio and PowerShares Fundamental Pure Small Core Portfolio will be reduced such that annual operating expenses of each Fund will not exceed 0.25% of its average daily net assets, effective May 22, 2015.

114

Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)

— 0.60%, excluding interest expenses, offering costs, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses, for PowerShares DWA Basic Materials Momentum Portfolio, PowerShares DWA Consumer Cyclicals Momentum Portfolio, PowerShares DWA Consumer Staples Momentum Portfolio, PowerShares DWA Energy Momentum Portfolio, PowerShares DWA Financial Momentum Portfolio, PowerShares DWA Healthcare Momentum Portfolio, PowerShares DWA Industrials Momentum Portfolio, PowerShares DWA Technology Momentum Portfolio and PowerShares DWA Utilities Momentum Portfolio; and

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

The Trustees noted that the Adviser represented that it does not serve as the investment adviser to any clients, other than other ETFs also overseen by the Trustees, with comparable investment strategies as the Funds, but that the Adviser provides sub-advisory services to clients with comparable investment strategies as certain of the Funds. The Trustees further noted the Adviser’s explanation with respect to the sub-advisory fees it receives for such services in comparison to the advisory fees charged to the Funds. The Trustees noted that the advisory fees for certain Funds were equal to or lower than the median advisory fees of their ETF and open-end index peer funds as illustrated in the table below. The Trustees also noted that the advisory fees for all of the Funds were lower than the median advisory fees of their open-end actively-managed peer funds.

PowerShares Fund	Equal to/Lower than ETF Median	Equal to/Lower than Open-End Index Fund Median3	Equal to/Lower than Open-End Active Fund Median
PowerShares Aerospace & Defense Portfolio		N/A	X
PowerShares Buyback Achievers Portfolio			X
PowerShares Cleantech Portfolio		N/A	X
PowerShares Dividend Achievers Portfolio		X	X
PowerShares DWA Basic Materials Momentum Portfolio		N/A	X
PowerShares DWA Consumer Cyclicals Momentum Portfolio		N/A	X
PowerShares DWA Consumer Staples Momentum Portfolio	X	N/A	X
PowerShares DWA Energy Momentum Portfolio		N/A	X
PowerShares DWA Financial Momentum Portfolio		N/A	X
PowerShares DWA Healthcare Momentum Portfolio		N/A	X
PowerShares DWA Industrials Momentum Portfolio		N/A	X
PowerShares DWA Momentum Portfolio		X	X
PowerShares DWA NASDAQ Momentum Portfolio		X	X
PowerShares DWA Technology Momentum Portfolio			X
PowerShares DWA Utilities Momentum Portfolio			X
PowerShares Dynamic Biotechnology & Genome Portfolio		N/A	X
PowerShares Dynamic Building & Construction Portfolio		N/A	X
PowerShares Dynamic Energy Exploration & Production Portfolio		N/A	X
PowerShares Dynamic Food & Beverage Portfolio	X	N/A	X
PowerShares Dynamic Large Cap Growth Portfolio			X
PowerShares Dynamic Large Cap Value Portfolio			X
PowerShares Dynamic Leisure and Entertainment Portfolio		N/A	X
PowerShares Dynamic Market Portfolio			X
PowerShares Dynamic Media Portfolio		N/A	X
PowerShares Dynamic Networking Portfolio			X
PowerShares Dynamic Oil & Gas Services Portfolio		N/A	X
PowerShares Dynamic Pharmaceuticals Portfolio		N/A	X
PowerShares Dynamic Retail Portfolio		N/A	X

115

Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)

PowerShares Fund	Equal to/Lower than ETF Median	Equal to/Lower than Open-End Index Fund Median3	Equal to/Lower than Open-End Active Fund Median
PowerShares Dynamic Semiconductors Portfolio			X
PowerShares Dynamic Software Portfolio			X
PowerShares Financial Preferred Portfolio	X	N/A	X
PowerShares FTSE RAFI US 1000 Portfolio			X
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio	X		X
PowerShares Fundamental Pure Large Core Portfolio		X	X
PowerShares Fundamental Pure Large Growth Portfolio		X	X
PowerShares Fundamental Pure Large Value Portfolio			X
PowerShares Fundamental Pure Mid Core Portfolio			X
PowerShares Fundamental Pure Mid Growth Portfolio	X	X	X
PowerShares Fundamental Pure Mid Value Portfolio		X	X
PowerShares Fundamental Pure Small Core Portfolio	X		X
PowerShares Fundamental Pure Small Growth Portfolio		X	X
PowerShares Fundamental Pure Small Value Portfolio	X	X	X
PowerShares Global Listed Private Equity Portfolio	X	N/A	X
PowerShares Golden Dragon China Portfolio	X	N/A	X
PowerShares High Yield Equity Dividend Achievers Portfolio		X	X
PowerShares International Dividend Achievers Portfolio	X	X	X
PowerShares S&P 500 High Quality Portfolio			X
PowerShares Water Resources Portfolio		N/A	X
PowerShares WilderHill Clean Energy Portfolio		N/A	X
PowerShares WilderHill Progressive Energy Portfolio		N/A	X
PowerShares Zacks Micro Cap Portfolio			X

³  The information provided by the Adviser indicated that certain Funds did not have open-end index fund peers. Those Funds have been designated with an “N/A” for not available.

The Trustees determined that the advisory fees were reasonable, noting the nature of the indexes, the distinguishing factors of the Funds, and the administrative, operational and management oversight costs for the Adviser. The Trustees noted that the net expense ratios for certain Funds were equal to or lower than the median net expense ratios of their ETF and open-end index peer funds as illustrated in the table below. The Trustees also noted that the net expense ratios for all of the Funds were lower than the median net expense ratios of their open-end actively-managed peer funds.

PowerShares Fund	Equal to/Lower than ETF Median	Equal to/Lower than Open-End Index Fund Median	Equal to/Lower than Open-End Active Fund Median
PowerShares Aerospace & Defense Portfolio		N/A	X
PowerShares Buyback Achievers Portfolio			X
PowerShares Cleantech Portfolio		N/A	X
PowerShares Dividend Achievers Portfolio		X	X
PowerShares DWA Basic Materials Momentum Portfolio		N/A	X
PowerShares DWA Consumer Cyclicals Momentum Portfolio		N/A	X
PowerShares DWA Consumer Staples Momentum Portfolio		N/A	X
PowerShares DWA Energy Momentum Portfolio		N/A	X
PowerShares DWA Financial Momentum Portfolio		N/A	X

116

Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)

PowerShares Fund	Equal to/Lower than ETF Median	Equal to/Lower than Open-End Index Fund Median	Equal to/Lower than Open-End Active Fund Median
PowerShares DWA Healthcare Momentum Portfolio		N/A	X
PowerShares DWA Industrials Momentum Portfolio		N/A	X
PowerShares DWA Momentum Portfolio		X	X
PowerShares DWA NASDAQ Momentum Portfolio		X	X
PowerShares DWA Technology Momentum Portfolio		X	X
PowerShares DWA Utilities Momentum Portfolio		X	X
PowerShares Dynamic Biotechnology & Genome Portfolio		N/A	X
PowerShares Dynamic Building & Construction Portfolio		N/A	X
PowerShares Dynamic Energy Exploration & Production Portfolio		N/A	X
PowerShares Dynamic Food & Beverage Portfolio		N/A	X
PowerShares Dynamic Large Cap Growth Portfolio			X
PowerShares Dynamic Large Cap Value Portfolio			X
PowerShares Dynamic Leisure and Entertainment Portfolio		N/A	X
PowerShares Dynamic Market Portfolio			X
PowerShares Dynamic Media Portfolio		N/A	X
PowerShares Dynamic Networking Portfolio		X	X
PowerShares Dynamic Oil & Gas Services Portfolio		N/A	X
PowerShares Dynamic Pharmaceuticals Portfolio		N/A	X
PowerShares Dynamic Retail Portfolio		N/A	X
PowerShares Dynamic Semiconductors Portfolio		X	X
PowerShares Dynamic Software Portfolio		X	X
PowerShares Financial Preferred Portfolio	X	N/A	X
PowerShares FTSE RAFI US 1000 Portfolio			X
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio		X	X
PowerShares Fundamental Pure Large Core Portfolio		X	X
PowerShares Fundamental Pure Large Growth Portfolio		X	X
PowerShares Fundamental Pure Large Value Portfolio			X
PowerShares Fundamental Pure Mid Core Portfolio		X	X
PowerShares Fundamental Pure Mid Growth Portfolio	X	X	X
PowerShares Fundamental Pure Mid Value Portfolio		X	X
PowerShares Fundamental Pure Small Core Portfolio		X	X
PowerShares Fundamental Pure Small Growth Portfolio		X	X
PowerShares Fundamental Pure Small Value Portfolio		X	X
PowerShares Global Listed Private Equity Portfolio		N/A	X
PowerShares Golden Dragon China Portfolio	X	N/A	X
PowerShares High Yield Equity Dividend Achievers Portfolio		X	X
PowerShares International Dividend Achievers Portfolio	X	X	X
PowerShares S&P 500 High Quality Portfolio	X	X	X
PowerShares Water Resources Portfolio		N/A	X
PowerShares WilderHill Clean Energy Portfolio		N/A	X
PowerShares WilderHill Progressive Energy Portfolio		N/A	X
PowerShares Zacks Micro Cap Portfolio			X

117

Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)

The Trustees noted that a significant component of the non-advisory fee expenses was the license fees paid by the Funds, and noted 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.

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 overall profitability as well as the estimated profitability to the Adviser from its relationship to each Fund. The Trustees concluded that the overall and estimated profitability to the Adviser was not unreasonable.

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 DWA NASDAQ Momentum 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.

118

Proxy Voting Policies and Procedures

A description of the Trust’s 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 each Fund 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 Trust files its complete schedule of portfolio holdings for the Funds 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, DC; information on the operation of the Public Reference Room may be obtained by calling (800) SEC-0330.

Frequency Distribution of Discounts and Premiums

A table showing the number of days the market price of each Fund’s shares was greater than the Fund’s net asset value, and the number of days it was less than the Fund’s net asset value (i.e., premium or discount) for the most recently completed calendar year, and the calendar quarters since that year end (or the life of the Fund, if shorter) may be found at the Fund’s website at www.invescopowershares.com.

©2015 Invesco PowerShares Capital Management LLC			P-PS-AR-5
3500 Lacey Road, Suite 700 Downers Grove, IL 60515
invescopowershares.com    800.983.0903		@PowerShares

April 30, 2015

2015 Annual Report to Shareholders

PPA	PowerShares Aerospace & Defense Portfolio
PZD	PowerShares CleantechTM Portfolio
PDP	PowerShares DWA Momentum Portfolio
PSP	PowerShares Global Listed Private Equity Portfolio
PGJ	PowerShares Golden Dragon China Portfolio
PBP	PowerShares S&P 500 BuyWrite Portfolio
SPHQ	PowerShares S&P 500® High Quality Portfolio
PHO	PowerShares Water Resources Portfolio
PBW	PowerShares WilderHill Clean Energy Portfolio
PUW	PowerShares WilderHill Progressive Energy Portfolio

Table of Contents

The Market Environment	3
Manager’s Analysis	4
Specialty Portfolios
Schedules of Investments
PowerShares Aerospace & Defense Portfolio (PPA)	26
PowerShares CleantechTM Portfolio (PZD)	27
PowerShares DWA Momentum Portfolio (PDP)	29
PowerShares Global Listed Private Equity Portfolio (PSP)	31
PowerShares Golden Dragon China Portfolio (PGJ)	33
PowerShares S&P 500 BuyWrite Portfolio (PBP)	35
PowerShares S&P 500® High Quality Portfolio (SPHQ)	40
PowerShares Water Resources Portfolio (PHO)	42
PowerShares WilderHill Clean Energy Portfolio (PBW)	43
PowerShares WilderHill Progressive Energy Portfolio (PUW)	45
Statements of Assets and Liabilities	48
Statements of Operations	50
Statements of Changes in Net Assets	52
Financial Highlights	56
Notes to Financial Statements	62
Report of Independent Registered Public Accounting Firm	76
Fees and Expenses	77
Tax Information	79
Trustees and Officers	80
Board Considerations Regarding Continuation of Investment Advisory Agreement	86

2

The Market Environment

Domestic Equity

Slow and steady improvement in the US economy and continued low interest rates led the US equity market higher during the fiscal year ended April 30, 2015. As the US economy continued along a slow growth path, the US Federal Reserve steadily reduced its asset purchase program, finally ending all purchases in October 2014. The reporting period began with corporate earnings bouncing back from a weather-related downturn resulting from an unusually harsh winter that negatively affected consumer spending. Stocks generally rallied through the summer of 2014 despite political upheaval in Ukraine and signs of economic sluggishness in China. In mid-September, as investors wrestled with evidence that economic growth appeared to be stronger in the US than in the rest of the world, the price of oil began a sharp and prolonged decline, causing US equities to fall. US equities recovered before the end of calendar year 2014, however. As calendar year 2015 began, investors were generally heartened by positive US economic data, but there was concern that if Greece failed to reach an agreement with the eurozone on a financial bailout plan, the repercussions would be felt more broadly. On balance, however, the general trend for US equities was positive.

International Equity

Global equities delivered generally moderate returns for the fiscal year ended April 30, 2015. Factors affecting global equity markets’ performance included generally positive, but subdued, economic growth, as well as varied monetary policies implemented by central banks around the world—and the effects those varied policies had on currencies.

In the US, the economy continued to expand, albeit slowly. While the US Federal Reserve Bank ended its quantitative easing program and suggested it was more comfortable with raising interest rates, the European Central Bank implemented new and more stimulative monetary policy in the form of asset purchases in an effort to prevent deflation. This policy divergence supported the continued strength of the US dollar. Meanwhile, the Bank of Japan increased its already extraordinary monetary stimulus, driving the yen lower and Japanese equities higher.

While a more aggressive monetary policy in the Eurozone failed to immediately ignite economic recovery, it briefly boosted European equity prices. Equity markets’ performance in emerging markets was mixed. In Russia, markets declined significantly—the result of a sharp drop in energy prices and heightened concerns about a possible recession. China continued to struggle to balance structural reforms with its desire for growth, while other Asian exporting countries also faced headwinds from slower global consumption.

Global equity markets pulled back at various points during the year in reaction to economic and geopolitical developments. In particular, ongoing geopolitical tensions in Ukraine and the Middle

East, along with the election of a new anti-austerity Greek government increased volatility and weakened the outlook for global economic growth. Nonetheless, most global equity markets ended the fiscal year in positive territory.

3

PPA	Manager’s Analysis
	PowerShares Aerospace & Defense Portfolio (PPA)

As an index fund, the PowerShares Aerospace & Defense Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the SPADE^TM Defense Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks of aerospace and defense companies that comprise the Index.

ISBC, LLC (the “Index Provider”) compiles, maintains and calculates the Index. Strictly in accordance with its existing guidelines and mandated procedures, the Index Provider selects constituents for the Index such that it seeks to measure the performance of securities in the defense, military, homeland security and space marketplace. The Index includes securities of companies that are principally engaged in the research the development, manufacture, operation and support of U.S. defense, military, homeland security and space operations listed on the NYSE, NYSE MKT or quoted on the NASDAQ. To have its securities eligible for inclusion in the Index, a company’s securities must, during the 25 days prior to the date that its securities are included in the Index, have maintained a minimum $100 million market cap, a minimum $5 daily sale price and an average daily trading volume of 50,000 shares. A company must also have a quarterly sales/revenue/ turnover of at least $10 million for the two announced quarters prior to the inclusion date. Companies that qualify and are selected for inclusion in the Index are weighted according to a modified market capitalization methodology. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2015, on a market price basis, the Fund returned 11.96%. On a net asset value (“NAV”) basis, the Fund returned 11.99%. During the same time period, the Index returned 12.68%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period.

During this same time period, the S&P Composite 1500 Aerospace & Defense Index (the “Benchmark Index”) returned 9.39%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 30 securities. The Benchmark Index was selected for its recognition in the marketplace, and its performance comparison is a useful measure for investors due primarily to its exposure to the aerospace and defense industry.

The performance of the Fund differed from the Benchmark Index in part because the Index, and as such the Fund, limits its constituents to companies that are involved in U.S. defense, military, homeland security and space operations, whereas the Benchmark Index includes companies that are involved in the commercial aerospace industry as well. More specifically, relative to the Benchmark Index, the Fund was most overweight in the IT services industry and most underweight in the aerospace & defense industry during the fiscal year ended April 30, 2015. The

majority of the Fund’s outperformance relative to the Benchmark Index during that period can be attributed to stock selection within the aerospace & defense industry.

For the fiscal year ended April 30, 2015, the aerospace & defense industry contributed most significantly to the Fund’s return, followed by the IT services and containers & packaging industries, respectively. The diversified telecommunication services industry detracted most significantly from the Fund’s return, followed by the machinery and leisure products industries (no longer held), respectively.

Positions that contributed most significantly to the Fund’s return included General Dynamics Corp., an aerospace & defense company (portfolio average weight of 5.79%), and Northrop Grumman Corp., an aerospace & defense company (portfolio average weight of 4.63%). Positions that detracted most significantly from the Fund’s return included Precision Castparts Corp., an aerospace & defense company (portfolio average weight of 4.58%), and Intelsat SA, a diversified telecommunication services company (portfolio average weight of 0.65%).

Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2015
Aerospace & Defense	77.4
IT Services	7.5
Communications Equipment	4.0
Containers & Packaging	3.5
Machinery	2.5
Software	2.2
Electronic Equipment, Instruments & Components	2.1
Diversified Telecommunication Services	0.4
Trading Companies & Distributors	0.4
Money Market Fund Plus Other Assets Less Liabilities	(0.0)
Top Ten Fund Holdings (% of the Fund’s Net Assets) as of April 30, 2015
Security
Honeywell International, Inc.	6.5
United Technologies Corp.	6.4
Boeing Co. (The)	6.3
Lockheed Martin Corp.	6.1
General Dynamics Corp.	5.9
Precision Castparts Corp.	4.6
Northrop Grumman Corp.	4.4
Raytheon Co.	4.3
Rockwell Collins, Inc.	4.2
Textron, Inc.	4.0
Total	52.7

4

PowerShares Aerospace & Defense Portfolio (PPA) (continued)

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

Fund Performance History as of April 30, 2015

	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			Fund Inception†
Index																Average Annualized			Cumulative
SPADETM Defense Index		12.68	%		23.95	%		90.44	%		15.59	%		106.35	%		1.42	%		179.73	%
S&P Composite 1500 Aerospace & Defense Index		9.39			22.48			83.75			15.82			108.40			12.69			211.66
Fund
NAV Return		11.99			23.15			86.78			14.84			99.71			10.70			163.00
Market Price Return		11.96			23.15			86.77			14.82			99.60			10.71			163.04

Fund Inception: October 26, 2005

Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2016. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.69%, and the net annual operating expense ratio was indicated as 0.66%. The Financial Highlights section of the Shareholders Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that

dividends and capital gain distributions have been reinvested in the Fund at NAV and Market 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 and Benchmark 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 and Benchmark Index do 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.

^†  Fund, Index and Benchmark Index returns are based on the inception date of the Fund.

5

PZD	Manager’s Analysis
	PowerShares CleantechTM Portfolio (PZD)

As an index fund, the PowerShares Cleantech^TM Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of The Cleantech^TM Index (PI) (the “Index”). The Fund generally will invest at least 90% of its total assets in stocks of clean technology (or “cleantech”) companies that comprise the Index and American depositary receipts based on the stocks in the Index.

Cleantech Indices LLC (the “Index Provider”) compiles, maintains and calculates the Index. Strictly in accordance with its existing guidelines and mandated procedures, the Index Provider identifies the securities comprising the Index and considers a company to be a cleantech company when it derives at least 50% of its revenues or operating profits from cleantech businesses, which are defined as: businesses that provide knowledge-based products (or services) that add economic value by reducing cost and raising productivity and/or product performance, while reducing the consumption of resources and the negative impact on the environment and public health. The Index focuses on companies that are leaders in the innovation and commercial deployment of cleantech products across a broad range of industries. To be eligible for inclusion in the Index, a company must derive at least 50% of its revenue or operating profit from cleantech businesses, maintain a three-month average market capitalization of at least $200 million, maintain a one-month average floated market capitalization of at least $150 million, maintain a listing on a securities exchange, and have a minimum average trading value of at least $200,000 per trading day for the trailing three-month period. The Index Provider further screens securities that meet the selection criteria. These screens include, but are not limited to, profitability, earnings growth and quality, business strategy, industry leadership and position, sector redundancy, intellectual property, impact on the environment, management quality, solvency, existing litigation and governance issues. In general, the Index equally weights its component securities within several bands based upon their market capitalization. Below a certain threshold, the Index Provider determines the bands based upon floated market capitalization. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2015, on a market price basis, the Fund returned (3.61)%. On a net asset value (“NAV”) basis, the Fund returned (3.33)%. During the same time period, the Index returned (4.17)%. During the fiscal year, the Fund fully replicated the components of the Index. The Fund outperformed the return of its Index, despite incurring fees and operating expenses, primarily due to the Index being calculated on a price return basis, which does not reflect any dividend income received from constituent securities, while the Fund’s NAV is calculated inclusive of any dividend income received.

For the fiscal year ended April 30, 2015, the software industry contributed most significantly to the Fund’s return, followed by the independent power and renewable electricity producers and aerospace & defense industries, respectively. The semiconductors & semiconductor equipment industry detracted most significantly from the Fund’s return, followed by the electronic equipment, instruments & components and professional services industries, respectively.

Positions that contributed most significantly to the Fund’s return included Polypore International, Inc., an electrical equipment company (no longer held at fiscal year-end), and Roper Technologies, Inc., an industrial conglomerates company (portfolio average weight of 3.13%). Positions that detracted most significantly from the Fund’s return included GT Advanced Technologies Inc., a semiconductors & semiconductor equipment company (no longer held at fiscal year-end), and Trimble Navigation Ltd., an electronic equipment & instruments company (portfolio average weight of 2.77%).

Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2015
Electrical Equipment	17.8
Machinery	15.7
Chemicals	8.8
Software	7.4
Semiconductors & Semiconductor Equipment	7.4
Professional Services	6.7
Industrial Conglomerates	6.5
Electronic Equipment, Instruments & Components	6.4
Auto Components	5.9
Independent Power and Renewable Electricity Producers	4.2
Commercial Services & Supplies	3.2
Life Sciences Tools & Services	2.4
Aerospace & Defense	2.4
Construction & Engineering	2.0
Building Products	1.6
Communications Equipment	0.8
Real Estate Investment Trusts	0.6
Money Market Funds Plus Other Assets Less Liabilities	0.2
Top Ten Fund Holdings (% of the Fund’s Net Assets) as of April 30, 2015
Security
Vestas Wind Systems A/S	3.1
Johnson Controls, Inc.	3.0
ABB Ltd.	3.0
Koninklijke DSM NV	2.9
BorgWarner, Inc.	2.9
Trimble Navigation Ltd.	2.9
Siemens AG	2.9
Roper Technologies, Inc.	2.9
Sensata Technologies Holding NV	2.9
Novozymes A/S, Class B	2.9
Total	29.4

6

PowerShares Cleantech^TM Portfolio (PZD) (continued)

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

Fund Performance History as of April 30, 2015

	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			Fund Inception†
Index																Average Annualized			Cumulative
Cleantech™ Index (The) (PI)		(4.17	)%		10.07	%		33.35	%		4.05	%		21.94	%		2.50	%		23.42	%
Fund
NAV Return		(3.33	)		10.93			36.50			4.92			27.15			3.03			28.98
Market Price Return		(3.61	)		10.97			36.66			5.04			27.90			3.01			28.70

Fund Inception: October 24, 2006

Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2016. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.72%, and the net annual operating expense ratio was indicated as 0.67%. The Financial Highlights section of the Shareholders Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund

at NAV and Market 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.

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

PI — Price only, and does not reflect dividend paid by the holdings in the Index

7

PDP	Manager’s Analysis
	PowerShares DWA Momentum Portfolio (PDP)

As an index fund, the PowerShares DWA Momentum Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Dorsey Wright Technical Leaders^TM Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks that comprise the Index.

Dorsey Wright & Associates, LLC (the “Index Provider”) compiles, maintains and calculates the Index. Strictly in accordance with its existing guidelines and mandated procedures, the Index Provider includes common stocks pursuant to a proprietary selection methodology that is designed to identify companies listed on the NYSE, NYSE MKT or the NASDAQ that demonstrate powerful relative strength characteristics. The Index Provider evaluates companies quarterly and ranks a universe of mid- and large-capitalization U.S. stocks traded on the NYSE, NYSE MKT or the NASDAQ using a proprietary relative strength methodology. The methodology takes into account, among other things, the performance of each of the approximately 1,000 largest companies in the eligible universe as compared to a benchmark index and the relative performance of industry sectors and sub-sectors. The Index Provider identifies approximately 100 of these stocks for inclusion in the Underlying Index. The stocks that the Index Provider includes receive a modified equal weighting.

For the fiscal year ended April 30, 2015, on a market price basis, the Fund returned 15.19%. On a net asset value (“NAV”) basis, the Fund returned 15.13%. During the same time period, the Index returned 14.93%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period.

During this same time period, the Russell 3000^® Growth Index (the “Benchmark Index”) returned 16.50%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 1,880 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of a broader-based market benchmark. The Benchmark Index was selected for its recognition in the marketplace, and exposure to growth stocks. The Benchmark Index performance comparison is a useful measure for investors as a broad representation of the U.S. growth equity market.

The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an Index that employs a proprietary stock selection and weighting methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization.

More specifically, relative to the Benchmark Index, the Fund was overweight in the consumer discretionary sector and underweight

in the information technology sector during the fiscal year ended April 30, 2015. Therefore, a majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to stock selection within the consumer discretionary sector.

For the fiscal year ended April 30, 2015, the consumer discretionary sector contributed most significantly to the Fund’s return, followed by the health care and information technology sectors, respectively. The energy (no longer held) sector was the only detracting sector.

Positions that contributed most significantly to the Fund’s return included Apple, Inc., an information technology company (portfolio average weight of 3.09%), and O’Reilly Automotive, Inc., a consumer discretionary company (portfolio average weight of 2.81%). Positions that detracted most significantly from the Fund’s return included FMC Corp., a materials company (no longer held at fiscal year-end), and ONEOK, Inc., a utilities company (no longer held at fiscal year-end).

Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2015
Consumer Discretionary	31.1
Health Care	21.7
Industrials	17.4
Materials	8.6
Information Technology	8.1
Consumer Staples	5.7
Financials	4.7
Utilities	2.2
Telecommunication Services	0.5
Money Market Fund Plus Other Assets Less Liabilities	(0.0)
Top Ten Fund Holdings (% of the Fund’s Net Assets) as of April 30, 2015
Security
Jazz Pharmaceuticals PLC	3.1
Apple, Inc.	3.0
O’Reilly Automotive, Inc.	2.9
Regeneron Pharmaceuticals, Inc.	2.5
Alexion Pharmaceuticals, Inc.	2.5
Dillard’s, Inc., Class A	2.5
Domino’s Pizza, Inc.	2.3
Ball Corp.	2.2
Henry Schein, Inc.	2.2
Medivation, Inc.	2.0
Total	25.2

8

PowerShares DWA Momentum Portfolio (PDP) (continued)

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

Fund Performance History as of April 30, 2015

	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			Fund Inception†
Index																Average Annualized			Cumulative
Dorsey Wright Technical Leaders™ Index		14.93	%		15.25	%		53.07	%		14.96	%		100.82	%		7.47	%		80.11	%
Russell 3000® Growth Index		16.50			16.64			58.69			15.45			105.08			8.84			91.42
Fund
NAV Return		15.13			15.61			54.54			15.26			103.45			7.64			82.38
Market Price Return		15.19			15.60			54.50			15.27			103.50			7.61			81.95

Fund Inception: March 1, 2007

Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.65%, including acquired fund fees and expenses of 0.01%. The Financial Highlights section of the Shareholders Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market 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 and Benchmark Index performance results are based upon a hypothetical investment in its constituent securities. Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index and Benchmark Index do 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.

^†  Fund, Index and Benchmark Index returns are based on the inception date of the Fund.

9

PSP	Manager’s Analysis
	PowerShares Global Listed Private Equity Portfolio (PSP)

As an index fund, the PowerShares Global Listed Private Equity Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Red Rocks Global Listed Private Equity Index (the “Index”). The Fund generally will invest at least 90% of its total assets in securities (including American depositary receipts (“ADRs”) and global depositary receipts (“GDRs”)) that comprise the Index.

Red Rocks Capital LLC (the “Index Provider”) compiles, maintains and calculates the Index. Strictly in accordance with its existing guidelines and mandated procedures, the Index Provider includes securities in the Index pursuant to a proprietary selection methodology. The Index is comprised of 40 to 75 securities, ADRs and GDRs of listed private equity companies. To be considered for inclusion in the Index, a security must invest a majority of its assets in, lend capital to, or provide services to, private companies, or must have a stated intention to do so. The Index Provider identifies private equity companies that will comprise the Index based upon the reputation, management, financial data, historical performance and the need for diversification within the Index. The Index views diversification from four different perspectives: a) stage of investment; b) type of capital; c) sector; and d) geography. Each listed private equity company must have a market capitalization of at least $100 million before inclusion in the Index. The Index uses float-adjusted, modified market capitalization weightings, with no component having a weight greater than 10%. The combined weight of all Index components that individually equal a 5% or greater weighting of the Index will not exceed 50% of the Index. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2015, on a market price basis, the Fund returned 6.09%. On a net asset value (“NAV”) basis, the Fund returned 6.79%. During the same time period, the Index returned 8.40%. The Fund’s underperformance compared to the Index was due, in part, to the Fund’s fees and operating expenses. In addition, the investment activities of one or more of the Adviser’s affiliates, including other subsidiaries of the Adviser’s parent company, Invesco Ltd., for their proprietary accounts and for client accounts restricted the Fund’s ability to own two securities represented in the Index. The Fund’s inability to own all the securities in the Index resulted in reduced correlation and greater underperformance.

For the fiscal year ended April 30, 2015, the capital markets industry contributed most significantly to the Fund’s return, followed by the metals & mining and internet software & services industries, respectively. The diversified financial services industry detracted most significantly from the Fund’s return, followed by the machinery and industrial conglomerates (no longer held) industries, respectively.

Positions that contributed most significantly to the Fund’s return included Fosun International Ltd., a metals & mining company (portfolio average weight of 3.39%), and 3i Group PLC, a capital markets company (portfolio average weight of 4.45%). Positions that detracted most significantly from the Fund’s return included Ratos AB, a capital markets company (portfolio average weight of 2.6%), and Wendel SA, a diversified financial services company (portfolio average weight of 3.03%).

Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2015
Capital Markets	52.9
Diversified Financial Services	22.4
Metals & Mining	5.6
Machinery	3.6
Internet Software & Services	3.1
Food Products	1.1
Money Market Funds Plus Other Assets Less Liabilities	11.3
Top Ten Fund Holdings (% of the Fund’s Net Assets) as of April 30, 2015
Security
Fosun International Ltd.	5.6
Onex Corp.	5.2
3i Group PLC	5.1
Partners Group Holding AG	5.0
Melrose Industries PLC	3.6
Eurazeo SA	3.4
Leucadia National Corp.	3.3
Wendel SA	2.9
Brait SE	2.9
IAC/InterActiveCorp.	2.7
Total	39.7

10

PowerShares Global Listed Private Equity Portfolio (PSP) (continued)

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

Fund Performance History as of April 30, 2015

	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			Fund Inception†
Index																Average Annualized			Cumulative
Blended-Red Rocks Global Listed Private Equity Index††		8.40	%		19.34	%		69.98	%		12.87	%		83.22	%		0.05	%		0.39	%
Fund
NAV Return		6.79			17.84			63.65			11.00			68.52			(2.62	)		(20.23	)
Market Price Return		6.09			17.65			62.86			10.91			67.82			(2.65	)		(20.44	)

Fund Inception: October 24, 2006

Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2016. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 2.05%, including acquired fund fees and expenses of 1.35%, and the net annual operating expense ratio was indicated as 2.04%. The Financial Highlights section of the Shareholders Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market 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.

Blended-Index performance results are based upon a hypothetical investment in its constituent securities. Blended-Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Blended-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.

^†  Fund and Blended-Index returns are based on the inception date of the Fund.

^††  The data included as the Blended-Index is comprised of the Red Rocks Capital Listed Private Equity Index from October 24, 2006, the Fund’s inception, until September 30, 2009, followed by the performance of the Red Rocks Global Listed Private Equity Index from September 30, 2009 through April 30, 2015.

11

PGJ	Manager’s Analysis
	PowerShares Golden Dragon China Portfolio (PGJ)

As an index fund, the PowerShares Golden Dragon China Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the NASDAQ Golden Dragon China Index (the “Index”). The Fund generally will invest at least 90% of its total assets in securities of companies deriving a majority of their revenues from the People’s Republic of China and that comprise the Index.

The NASDAQ OMX Group, Inc. (or the “Index Provider”) compiles, maintains and calculates the Index. Strictly in accordance with its existing guidelines and mandated procedures, the Index Provider includes securities in the Index to provide access to the unique economic opportunities taking place in China while still providing investors with the transparency offered with U.S. exchange listed securities. Securities eligible for inclusion in the Index must be issued by a company headquartered or incorporated in the People’s Republic of China, be listed on the NASDAQ, the NYSE or NYSE MKT, have a minimum market capitalization of $100 million and have a minimum three-month average daily dollar trading volume of $250,000, and may include common stocks, ordinary shares, American depositary receipts (“ADRs”), shares of beneficial interest, limited partnership interests or tracking stocks. The Index Provider calculates the Index’s composition using a modified market capitalization-weighting methodology, such that the maximum weight of any security does not exceed 8% of the Index, while at no time permitting more than five securities to reach that 8% cap. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2015, on a market price basis, the Fund returned 22.83%. On a net asset value (“NAV”) basis, the Fund returned 22.79%. During the same time period, the Index returned 23.10%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period.

During this same time period, the FTSE/Xinhua China 25 Index (the “Benchmark Index”) returned 53.08%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 25 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of another index representative of equity exposure to Chinese companies. The Benchmark Index was selected for its recognition in the marketplace.

The performance of the Fund differed from the Benchmark Index primarily because of substantially different individual company components and sector weightings. Additionally, the Fund invests in Chinese companies, as defined by the Index methodology, listed on U.S. exchanges, whereas the Benchmark Index is composed of Chinese stocks listed on the Hong Kong stock exchange. A comparison to the Benchmark Index is still relevant as the Fund and Benchmark Index both represent exposure to Chinese companies.

Relative to the Benchmark Index, the Fund was most overweight in the information technology sector and most underweight in the

financials sector during the fiscal year ended April 30, 2015. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to the Fund’s allocation to the financials sector.

For the fiscal year ended April 30, 2015, the consumer discretionary sector contributed most significantly to the Fund’s return, followed by the information technology and telecommunication services sectors, respectively. The materials sector detracted most significantly from the Fund’s return, followed by the industrials sector.

Positions that contributed most significantly to the Fund’s return included Vipshop Holdings Ltd. ADR, a consumer discretionary company (portfolio average weight of 6.28%), and NetEase, Inc. ADR, an information technology company (portfolio average weight of 7.35%). Positions that detracted most significantly from the Fund’s return included Qihoo 360 Technology Co. Ltd. ADR, an information technology company (portfolio average weight of 6.37%), and SouFun Holdings Ltd. ADR, an information technology company (portfolio average weight of 2.14%).

Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2015
Information Technology	46.0
Consumer Discretionary	30.2
Health Care	7.7
Telecommunication Services	7.6
Energy	3.4
Financials	2.5
Industrials	2.0
Utilities	0.4
Materials	0.2
Money Market Funds Plus Other Assets Less Liabilities	(0.0)
Top Ten Fund Holdings (% of the Fund’s Net Assets) as of April 30, 2015
Security
Ctrip.com International Ltd. ADR	8.5
NetEase, Inc. ADR	8.5
Vipshop Holdings Ltd. Class A ADR	7.8
China Mobile Ltd. ADR	6.6
Baidu, Inc., Class A ADR	6.6
Qihoo 360 Technology Co. Ltd., Class A ADR	4.4
New Oriental Education & Technology Group, Inc. ADR	3.2
WuXi PharmaTech Cayman, Inc. ADR	2.8
SINA Corp.	2.6
Mindray Medical International Ltd., Class A. ADR	2.4
Total	53.4

12

PowerShares Golden Dragon China Portfolio (PGJ) (continued)

Growth of a $10,000 Investment

Fund Performance History as of April 30, 2015

	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			10 Years Average Annualized			10 Years Cumulative			Fund Inception†
Index																						Average Annualized			Cumulative
NASDAQ Golden Dragon China Index		23.10	%		17.76	%		63.31	%		7.98	%		46.76	%		11.91	%		208.01	%		10.18	%		173.92	%
FTSE/Xinhua China 25 Index		53.08			14.94			51.85			7.92			46.36			13.98			270.07			13.45			271.17
Fund
NAV Return		22.79			17.66			62.89			7.63			44.45			11.32			192.20			9.68			161.08
Market Price Return		22.83			17.75			63.26			7.59			44.20			11.31			192.01			9.63			159.99

Fund Inception: December 9, 2004

Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2016. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.70%. The Financial Highlights section of the Shareholders Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund

at NAV and Market 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 and Benchmark Index performance results are based upon a hypothetical investment in its constituent securities. Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index and Benchmark Index do 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.

^†  Fund, Index and Benchmark Index returns are based on the inception date of the Fund.

13

PBP	Manager’s Analysis
	PowerShares S&P 500 BuyWrite Portfolio (PBP)

As an index fund, the PowerShares S&P 500 BuyWrite Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the CBOE S&P 500 BuyWrite^TM Index (the “Index”). The Fund generally will invest at least 90% of its total assets in securities that comprise the Index and will write (sell) call options thereon.

The Chicago Board Options Exchange, Incorporated (the “Index Provider”) compiles, maintains and calculates the Index. The Index measures the total rate of return of an S&P 500^® Index covered call strategy. This strategy consists of holding a long portfolio indexed to the S&P 500^® Index and selling a succession of covered call options, each with an exercise price at or above the prevailing price level of the S&P 500^® Index. The Index provides a benchmark measure of the total return performance of this hypothetical strategy. The Index reinvests dividends paid on the component stocks underlying the S&P 500^® Index and the dollar value of option premiums received from covered call options. The Index assumes that the call options are written (sold) on the third Friday of each month and expire in the next calendar month after they are written. The Index assumes that the call options are held until their expiration. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2015, on a market price basis, the Fund returned 4.32%. On a net asset value (“NAV”) basis, the Fund returned 4.48%. During the same time period, the Index returned 5.31%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period.

During this same time period, the S&P 500^® Index (the “Benchmark Index”) returned 12.98%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 500 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of a broad-based market benchmark that does not contain a covered call component.

The Benchmark Index was selected for its recognition in the marketplace, and its performance comparison is a useful measure for investors as a broad representation of the U.S. equity market.

During the period, the Fund underperformed the Benchmark Index primarily because of the covered call feature of the Fund. The sale of calls, while providing premium income to the Fund, did not make up for the rising market and the exercise of the options during the period, which resulted in underperformance versus the Benchmark Index.

For the fiscal year ended April 30, 2015, the information technology sector contributed most significantly to the Fund’s return, followed by the health care and consumer discretionary sectors, respectively. The energy sector was the only detracting sector.

Positions that contributed most significantly to the Fund’s return included Apple Inc., an information technology company (portfolio average weight of 3.65%), and Microsoft Corp., an information technology company (portfolio average weight of 2.01%). Positions that detracted most significantly from the Fund’s return included Exxon Mobil Corp., an energy company (portfolio average weight of 2.31%), and International Business Machines Corp., an information technology company (portfolio average weight of 0.94%).

Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2015
Information Technology	20.1
Financials	16.3
Health Care	14.7
Consumer Discretionary	12.6
Industrials	10.4
Consumer Staples	9.6
Energy	8.6
Materials	3.3
Utilities	3.0
Telecommunication Services	2.4
Other Assets Less Liabilities	(1.0)
Top Ten Fund Holdings (% of the Fund’s Net Assets) as of April 30, 2015
Security
Apple, Inc.	4.0
Microsoft Corp.	2.2
Exxon Mobil Corp.	2.0
Johnson & Johnson	1.5
General Electric Co.	1.5
Wells Fargo & Co.	1.4
Berkshire Hathaway, Inc., Class B	1.4
JPMorgan Chase & Co.	1.3
Procter & Gamble Co. (The)	1.2
Verizon Communications, Inc.	1.1
Total	17.6

14

PowerShares S&P 500 BuyWrite Portfolio (PBP) (continued)

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

Fund Performance History as of April 30, 2015

	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			Fund Inception†
Index																Average Annualized			Cumulative
CBOE S&P 500 BuyWrite™ Index		5.31	%		7.15	%		23.03	%		7.58	%		44.08	%		3.74	%		31.06	%
S&P 500® Index		12.98			16.73			59.05			14.33			95.31			7.27			67.60
Fund
NAV Return		4.48			6.33			20.20			6.72			38.41			2.89			23.36
Market Price Return		4.32			6.24			19.90			6.72			38.41			2.89			23.38

Fund Inception: December 20, 2007

Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. According to the Fund’s current prospectus, the Fund’s expense ratio 0.75% is expressed as a unitary management fee to cover operating expenses and expenses incurred in connection with managing the portfolio. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market 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 and Benchmark Index performance results are based upon a hypothetical investment in its constituent securities. Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index and Benchmark Index do 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.

^†  Fund, Index and Benchmark Index returns are based on the inception date of the Fund.

15

SPHQ	Manager’s Analysis
	PowerShares S&P 500® High Quality Portfolio (SPHQ)

As an index fund, the PowerShares S&P 500^® High Quality Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the S&P 500^® High Quality Rankings Index (the “Index”). The Fund generally will invest at least 90% of its total assets in securities that comprise the Index.

The Index is designed to provide exposure to the constituents of the S&P 500^® Index that S&P Quality Rankings identifies as high quality stocks. Standard & Poor’s has provided Earnings and Dividend Rankings, commonly referred to as Quality Rankings, on U.S. common stocks since 1956. Quality Rankings reflect the long term growth and stability of a company’s earnings and dividends. Standard & Poor’s generates Quality Rankings by using a computerized system based on per-share earnings and dividends records of the most recent 10 years. Standard & Poor’s computes basic scores for earnings and dividends, and then adjusts the basic scores as indicated by a set of predetermined modifiers for change in the rate of growth, stability within long-term trend and cyclicality. Standard & Poor’s then combines adjusted scores for earnings and dividends to yield a final ranking. If a company within the S&P 500^® Index does not have a Quality Ranking assigned to it, it is not considered for inclusion within the Index. S&P 500^® Index constituents with Quality Rankings of A- or above are selected for inclusion in the Index. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2015, on a market price basis, the Fund returned 13.18%. On a net asset value (“NAV”) basis, the Fund returned 13.17%. During the same time period, the Index returned 13.52%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period.

During this same time period, the S&P 500^® Index (the “Benchmark Index”) returned 12.98%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 500 securities. The Fund provided this additional comparative benchmark because of its recognition in the market place and to help investors better understand how the investment results of the Fund compare to the performance of a broad-based U.S. stock market benchmark.

The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an Index that selects stocks based on S&P Quality Rankings, which takes into account earnings and dividends, while the Benchmark Index does not.

Relative to the Benchmark Index, the Fund was most overweight in the industrials sector and most underweight in the information technology sector during the fiscal year ended April 30, 2015.

The majority of the Fund’s outperformance relative to the Benchmark Index during that period can be attributed to the Fund’s lower allocation to the energy sector compared to the Benchmark Index.

For the fiscal year ended April 30, 2015, the consumer discretionary sector contributed most significantly to the Fund’s return, followed by the industrials and health care sectors, respectively. The energy sector was the only detracting sector.

Positions that contributed most significantly to the Fund’s return included UnitedHealth Group, Inc., a health care company (portfolio average weight of 1.24%), and Sigma-Aldrich Corp., a materials company (portfolio average weight of 1.22%). Positions that detracted most significantly from the Fund’s return included Mattel, Inc., a consumer discretionary company (portfolio average weight of 0.72%), and International Business Machines Corp., an information technology company (portfolio average weight of 1.12%).

Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2015
Industrials	26.8
Consumer Staples	18.8
Consumer Discretionary	18.6
Health Care	9.2
Materials	8.1
Information Technology	5.8
Financials	5.7
Utilities	5.7
Energy	1.3
Other Assets Less Liabilities	0.0
Top Ten Fund Holdings (% of the Fund’s Net Assets) as of April 30, 2015
Security
Yum! Brands, Inc.	1.3
W.W. Grainger, Inc.	1.3
International Business Machines Corp.	1.3
Emerson Electric Co.	1.3
Walt Disney Co. (The)	1.3
Sigma-Aldrich Corp.	1.2
Praxair, Inc.	1.2
Lorillard, Inc.	1.2
NIKE, Inc., Class B	1.2
Family Dollar Stores, Inc.	1.2
Total	12.5

16

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

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

Fund Performance History as of April 30, 2015

	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			Fund Inception†
Index																Average Annualized			Cumulative
Blended-S&P 500® High Quality Rankings Index††		13.52	%		17.41	%		61.86	%		16.11	%		111.03	%		5.50	%		65.42	%
S&P 500® Index		12.98			16.73			59.05			14.33			95.31			7.72			101.26
Fund
NAV Return		13.17			17.03			60.27			15.65			106.91			5.37			63.53
Market Price Return		13.18			17.01			60.19			15.64			106.81			5.32			62.71

Fund Inception: December 6, 2005

Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2016. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.39%, and the net annual operating expense ratio was indicated as 0.29%. The Financial Highlights section of the Shareholders Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market 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.

Blended-Index and Benchmark Index performance results are based upon a hypothetical investment in its constituent securities. Blended-Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Blended-Index and Benchmark Index do 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.

^†  Fund, Blended-Index and Benchmark Index returns are based on the inception date of the Fund.

^††  The data known as the Blended-Index is comprised of the original performance of the Value Line Timeliness Select Index from Fund inception through the conversion date, June 29, 2010, followed by the performance of the S&P 500^® High Quality Rankings Index starting at the conversion date and through April 30, 2015.

17

PHO	Manager’s Analysis
	PowerShares Water Resources Portfolio (PHO)

As an index fund, the PowerShares Water Resources Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the NASDAQ OMX US Water^SM Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks and American depositary receipts (“ADR”) of companies in the water industry that comprise the Index.

NASDAQ OMX Group, Inc. (or the “Index Provider”) compiles, maintains and calculates the Index. The Index is comprised of U.S. exchange-listed companies that create products designed to conserve and purify water for homes, businesses and industries. Securities eligible for inclusion in the Index include common stocks, ordinary shares, depositary receipts (both American and global), depositary shares or limited partnership interests. Eligible securities must also meet the following criteria: a) have issuers classified by SustainableBusiness.com LLC as participating in the “Green Economy,” an environmental and clean energy sector portion of the NASDAQ OMX Green Economy Global Benchmark Index, which includes 350 securities from 13 different environmental sectors; b) be listed on NASDAQ, NYSE, or NYSE MKT; c) only one security per issuer is permitted; d) the securities must have a minimum worldwide market capitalization of $50 million; and e) the security must have a minimum three-month average daily dollar trading volume of $250,000. The Index Provider evaluates securities annually for eligibility. Each quarter, the Index Provider rebalances the Index using a modified liquidity weighting methodology, such that the maximum weight of any security does not exceed 8% of the Index, while at no time permitting more than five securities to reach that 8% cap. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2015, on a market price basis, the Fund returned (2.29)%. On a net asset value (“NAV”) basis, the Fund returned (2.25)%. During the same time period, the Index returned (1.65)%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period.

For the fiscal year ended April 30, 2015, the life sciences tools & services industry contributed most significantly to the Fund’s return, followed by the industrial conglomerates and water utilities industries, respectively. The machinery industry detracted most significantly from the Fund’s return, followed by the construction & engineering and commercial services & supplies industries, respectively.

Positions that contributed most significantly to the Fund’s return included Waters Corp., a life sciences tools & services company (portfolio average weight of 8.27%), and Roper Technologies,

Inc., an industrial conglomerates company (portfolio average weight of 8.33%). Positions that detracted most significantly from the Fund’s return included Flowserve Corp., a machinery company (portfolio average weight of 7.69%), and Cia de Saneamento Basico do Estado de Sao Paulo ADR, a water utilities company (portfolio average weight of 3.64%).

Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2015
Machinery	47.6
Water Utilities	17.7
Life Sciences Tools & Services	8.4
Industrial Conglomerates	8.1
Electronic Equipment, Instruments & Components	5.1
Commercial Services & Supplies	4.3
Construction & Engineering	3.8
Electrical Equipment	2.8
Chemicals	2.2
Money Market Fund Plus Other Assets Less Liabilities	0.0
Top Ten Fund Holdings (% of the Fund’s Net Assets) as of April 30, 2015
Security
Waters Corp.	8.4
Roper Technologies, Inc.	8.1
Pall Corp.	7.8
Flowserve Corp.	7.6
Pentair PLC	7.5
Tetra Tech, Inc.	4.3
Xylem, Inc.	4.2
Mueller Water Products, Inc., Class A	4.1
Aqua America, Inc.	4.1
Valmont Industries, Inc.	4.1
Total	60.2

18

PowerShares Water Resources Portfolio (PHO) (continued)

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

Fund Performance History as of April 30, 2015

	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			Fund Inception†
Index																Average Annualized			Cumulative
Blended-NASDAQ OMX US Water IndexSM,††		(1.65	)%		11.76	%		39.58	%		8.43	%		49.91	%		7.37	%		95.05	%
Fund
NAV Return		(2.25	)		11.02			36.85			7.60			44.21			6.11			74.57
Market Price Return		(2.29	)		11.02			36.82			7.58			44.09			5.98			72.53

Fund Inception: December 6, 2005

Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.61%. The Financial Highlights section of the Shareholders Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market 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.

Blended-Index performance results are based upon a hypothetical investment in its constituent securities. Blended-Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Blended-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.

^†  Fund and Blended-Index returns are based on the inception date of the Fund.

^††  The data known as the Blended-Index is comprised of the performance of the Palisades Water Index, from Fund inception through the conversion date, March 1, 2012, followed by the performance of the NASDAQ OMX US Water Index^SM starting at the conversion date and through April 30, 2015.

19

PBW	Manager’s Analysis
	PowerShares WilderHill Clean Energy Portfolio (PBW)

As an index fund, the PowerShares WilderHill Clean Energy Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the WilderHill Clean Energy Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks of companies engaged in the business of the advancement of cleaner energy and conservation that comprise the Index.

WilderHill (the “Index Provider”) compiles, maintains and calculates the Index. Strictly in accordance with its guidelines and mandated procedures, the Index Provider includes stocks in the Index that it believes will substantially benefit from a societal transition toward the use of cleaner energy and conservation. The Index uses modified equal dollar weighting. No single stock may exceed 4% of the total Index weight at the quarterly rebalancing. For a stock to be included in the selection universe, the Index Provider must identify a company as one that has a significant exposure to clean energy, or contribute to the advancement of clean energy or be important to the development of clean energy. Companies in the Index generally (i) help prevent pollutants such as carbon dioxide, nitrous oxide, sulfur oxide or particulates—and avoid carbon or contaminants that harm oceans, land, air or ecosystems structure, (ii) work to further renewable energy efforts and do so in ecologically and economically sensible ways and (iii) incorporate the precautionary principles into their pollution prevention and clean energy efforts. Similarly, companies in the Index generally will not have their majority interests in oil or coal, which are the highest-carbon fuels. Large companies with interests outside clean energy may be included if they are significant to this sector. Components with a market capitalization less than $200 million are weighted at rebalance to one-half of a percent (0.50%). To be eligible for the Index, a stock must have: a) three-month average market capitalization of at least $50 million; and b) three-month average closing price above $1.00 if not currently in the Index.

For the fiscal year ended April 30, 2015, on a market price basis, the Fund returned (10.36)%. On a net asset value (“NAV”) basis, the Fund returned (10.36)%. During the same time period, the Index returned (12.16)%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to the revenue that the Fund generated through its securities lending program, despite the fees and operating expenses that the Fund incurred during the period.

During this same time period, the NASDAQ Composite Index (PI) (the “Benchmark Index”) returned 20.10%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 2,570 securities. The Benchmark Index performance is price only, and does not reflect dividends paid by the holdings in the Benchmark Index. The

Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of broad-based equity market benchmark. The Benchmark Index was selected for its recognition in the marketplace, and its performance comparison is a useful measure for investors as a broad representation of the equity market.

The performance of the Fund differed from the Benchmark Index because the Index employs a proprietary stock selection and weighting methodology whereas the Benchmark Index selects and weights stocks based on market capitalization. More specifically, the Fund was most overweight in the semiconductors & semiconductor equipment industry and most underweight in the technology hardware, storage & peripherals (no longer held) industry during the fiscal year ended April 30, 2015. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to the Fund’s allocation to the semiconductors & semiconductor equipment industry, software industry, and technology hardware, storage & peripherals (no longer held) industry.

For the fiscal year ended April 30, 2015, the independent power and renewable electricity producers industry contributed most significantly to the Fund’s return, followed by the chemicals and auto components industries, respectively. The semiconductors & semiconductor equipment industry detracted most significantly from the Fund’s return, followed by the oil, gas & consumable fuels and software industries, respectively.

Positions that contributed most significantly to the Fund’s return included Universal Display Corp., an electronic equipment, instruments & components company (portfolio average weight of 2.27%), and Polypore International, Inc., an electrical equipment company (no longer held at fiscal year-end). Positions that detracted most significantly from the Fund’s return included GT Advanced Technologies Inc., a semiconductors & semiconductor equipment company (no longer held at fiscal year-end), and Aixtron SE ADR, a semiconductors & semiconductor equipment company (portfolio average weight of 2.06%).

20

PowerShares WilderHill Clean Energy Portfolio (PBW) (continued)

Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2015
Semiconductors & Semiconductor Equipment	29.2
Electrical Equipment	19.4
Independent Power and Renewable Electricity Producers	12.2
Chemicals	6.7
Oil, Gas & Consumable Fuels	6.2
Electronic Equipment, Instruments & Components	5.9
Auto Components	5.0
Software	4.5
Construction & Engineering	4.4
Electric Utilities	2.3
Automobiles	2.2
Internet Software & Services	1.9
Money Market Funds Plus Other Assets Less Liabilities	0.1
Top Ten Fund Holdings (% of the Fund’s Net Assets) as of April 30, 2015
Security
China Ming Yang Wind Power Group Ltd. ADR	3.7
Solazyme, Inc.	3.3
Hanwha Q Cells Co. Ltd. ADR	3.3
SolarCity Corp.	2.8
Vivint Solar, Inc.	2.7
TerraForm Power, Inc., Class A	2.6
Gentherm, Inc.	2.5
Ballard Power Systems, Inc.	2.4
Pattern Energy Group, Inc.	2.4
JA Solar Holdings Co. Ltd. ADR	2.4
Total	28.1

21

PowerShares WilderHill Clean Energy Portfolio (PBW) (continued)

Growth of a $10,000 Investment

Fund Performance History as of April 30, 2015

				3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			10 Years Average Annualized			10 Years Cumulative			Fund Inception†
Index	1 Year																					Average Annualized			Cumulative
WilderHill Clean Energy Index		(12.16	)%		5.58	%		17.71	%		(9.66	)%		(39.81	)%		(7.51	)%		(54.20	)%		9.11	%		62.13	%
NASDAQ Composite Index (PI)		20.10			17.50			62.21			14.96			100.77			9.91			157.15			N/A			N/A
Fund
NAV Return		(10.36	)		7.22			23.25			(8.74	)		(36.70	)		(6.71	)		(50.05	)		(8.37	)		(58.85	)
Market Price Return		(10.36	)		7.22			23.25			(8.72	)		(36.63	)		(6.69	)		(49.98	)		(8.36	)		(58.83	)

Fund Inception: March 3, 2005

Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2016. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.70%. The Financial Highlights section of the Shareholders Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market 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 and Benchmark Index performance results are based upon a hypothetical investment in its constituent securities. Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index and Benchmark Index do 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.

^†  Fund, Index and Benchmark Index returns are based on the inception date of the Fund.

PI — Price Only, and does not reflect dividends paid by the holdings in the Benchmark Index

22

PUW	Manager’s Analysis
	PowerShares WilderHill Progressive Energy Portfolio (PUW)

As an index fund, the PowerShares WilderHill Progressive Energy Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the WilderHill Progressive Energy Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks of companies engaged principally in the progressive energy business that comprise the Index.

Progressive Energy Index LLC (the “Index Provider”) compiles, maintains and calculates the Index. Strictly in accordance with its existing guidelines and mandated procedures, the Index Provider includes companies in the Index pursuant to a proprietary selection methodology. The Index is a modified equal-weighted index composed of companies in transitional energy technologies that improve the use of fossil fuels and nuclear power. The Index Provider includes companies focused on the following areas in the Index: alternative energy; better efficiency; emission reduction; new energy activity; utilities; and energy conversion and storage. To be eligible for the Index, a stock must have: (i) three-month average market capitalization of at least $150 million; (ii) three-month average closing price above $1.00 if not currently in the Index; and (iii) a listing on the NYSE, NYSE MKT or the NASDAQ and, if a foreign company, have its ADRs listed on the NYSE, NYSE MKT or the NASDAQ. Components less than $400 million in market capitalization are set to one-half of a percent (0.5%) weight at the rebalance. No single stock may exceed 5% of the total Index weight at the quarterly rebalancing. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2015, on a market price basis, the Fund returned (11.54)%. On a net asset value (“NAV”) basis, the Fund returned (11.59)%. During the same time period, the Index returned (11.51)%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred, and offset, to some extent, by the securities lending revenue generated, during the period.

During this same time period, the NASDAQ Composite Index (PI) (the “Benchmark Index”) returned 20.10%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 2,570 securities. The Benchmark Index performance is price only, and does not reflect dividends paid by the holdings in the Benchmark Index. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of broad-based equity market benchmark. The Benchmark Index was selected for its recognition in the marketplace, and its performance comparison is a useful measure for investors as a broad representation of the equity market.

The performance of the Fund differed from the Benchmark Index because the Index employs a proprietary stock selection and weighting methodology whereas the Benchmark Index selects and weights stocks based on market capitalization. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to stock selection within the oil, gas and consumable fuels industries.

For the fiscal year ended April 30, 2015, the building products industry contributed most significantly to the Fund’s return, followed by the independent power and renewable electricity producers and aerospace & defense industries, respectively. The oil, gas & consumable fuels industry detracted most significantly from the Fund’s return, followed by the machinery and electrical equipment industries.

Positions that contributed most significantly to the Fund’s return included Apogee Enterprises, Inc., a building products company (portfolio average weight of 1.98%), and Clean Energy Fuels Corp., an oil, gas & consumable fuels company (portfolio average weight of 1.83%). Positions that detracted most significantly from the Fund’s return included Nuverra Environmental Solutions, Inc., an energy equipment & services company (no longer held at fiscal year-end), and Advanced Emissions Solutions, Inc., a chemicals company (no longer held at fiscal year-end).

Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2015
Oil, Gas & Consumable Fuels	21.6
Electrical Equipment	16.0
Machinery	10.2
Auto Components	6.1
Building Products	5.7
Independent Power and Renewable Electricity Producers	5.6
Construction & Engineering	5.3
Electric Utilities	4.6
Chemicals	4.6
Automobiles	4.1
Energy Equipment & Services	3.1
Electronic Equipment, Instruments & Components	2.0
Food & Staples Retailing	2.0
Aerospace & Defense	2.0
Real Estate Investment Trusts	1.9
Industrial Conglomerates	1.8
Semiconductors & Semiconductor Equipment	1.7
Commercial Services & Supplies	1.6
Money Market Funds Plus Other Assets Less Liabilities	0.1

23

PowerShares WilderHill Progressive Energy Portfolio (PUW) (continued)

Top Ten Fund Holdings (% of the Fund’s Net Assets) as of April 30, 2015
Security
Clean Energy Fuels Corp.	3.4
McDermott International, Inc.	3.1
Sasol Ltd. ADR	2.5
Range Resources Corp.	2.5
Centrais Eletricas Brasileiras SA ADR	2.4
Southwestern Energy Co.	2.4
GrafTech International Ltd.	2.3
Tenneco, Inc.	2.3
Green Plains, Inc.	2.3
Cameco Corp.	2.3
Total	25.5

24

PowerShares WilderHill Progressive Energy Portfolio (PUW) (continued)

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

Fund Performance History as of April 30, 2015

	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			Fund Inception†
Index																Average Annualized			Cumulative
WilderHill Progressive Energy Index		(11.51	)%		5.21	%		16.45	%		4.34	%		23.66	%		3.17	%		30.43	%
NASDAQ Composite Index (PI)		20.10			17.50			62.21			14.96			100.77			9.14			110.74
Fund
NAV Return		(11.59	)		4.51			14.14			3.55			19.04			2.39			22.27
Market Price Return		(11.54	)		4.52			14.19			3.55			19.04			2.39			22.32

Fund Inception: October 24, 2006

Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2016. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.84%, and the net annual operating expense ratio was indicated as 0.70%. The Financial Highlights section of the Shareholders Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market 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 and Benchmark Index performance results are based upon a hypothetical investment in its constituent securities. Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index and Benchmark Index do 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.

^†  Fund, Index and Benchmark Index returns are based on the inception date of the Fund.

PI — Price Only, and does not reflect dividends paid by the holdings in the Benchmark Index

25

Schedule of Investments^(a)

PowerShares Aerospace & Defense Portfolio (PPA)

April 30, 2015

Number of Shares			Value
		Common Stocks—100.0%
		Aerospace & Defense—77.4%
	35,759	AAR Corp.	$	1,081,352
	56,258	Aerojet Rocketdyne Holdings, Inc.(b)		1,106,032
	20,969	Aerovironment, Inc.(b)		536,806
	6,639	American Science & Engineering, Inc.		248,431
	115,394	Boeing Co. (The)		16,540,576
	24,139	Cubic Corp.		1,196,812
	42,940	Curtiss-Wright Corp.		3,137,196
	65,195	DigitalGlobe, Inc.(b)		2,097,323
	9,836	Ducommun, Inc.(b)		299,014
	32,677	Engility Holdings, Inc.		910,708
	27,959	Esterline Technologies Corp.(b)		3,111,557
	167,584	Exelis, Inc.		4,109,160
	112,772	General Dynamics Corp.		15,485,851
	59,919	HEICO Corp.		3,345,877
	86,582	Hexcel Corp.		4,342,087
	168,165	Honeywell International, Inc.		16,971,212
	43,890	Huntington Ingalls Industries, Inc.		5,775,485
	33,768	KEYW Holding Corp. (The)(b)		325,861
	52,368	Kratos Defense & Security Solutions, Inc.(b)		286,453
	74,405	L-3 Communications Holdings, Inc.		8,549,879
	11,805	LMI Aerospace, Inc.(b)		133,278
	86,076	Lockheed Martin Corp.		16,061,782
	35,817	Moog, Inc., Class A(b)		2,502,892
	75,127	Northrop Grumman Corp.		11,572,563
	53,286	Orbital ATK, Inc.		3,898,404
	58,056	Precision Castparts Corp.		11,999,595
	109,228	Raytheon Co.		11,359,712
	113,609	Rockwell Collins, Inc.		11,057,564
	8,899	Sparton Corp.(b)		229,327
	47,708	TASER International, Inc.(b)		1,440,305
	31,720	Teledyne Technologies, Inc.(b)		3,329,648
	240,120	Textron, Inc.		10,560,478
	47,368	TransDigm Group, Inc.		10,048,174
	45,340	Triumph Group, Inc.		2,685,942
	147,153	United Technologies Corp.		16,738,654
	9,463	Vectrus, Inc.(b)		241,874
				203,317,864
		Communications Equipment—4.0%
	14,609	Comtech Telecommunications Corp.		422,200
	93,567	Harris Corp.		7,507,816
	42,811	ViaSat, Inc.(b)		2,573,798
				10,503,814
		Containers & Packaging—3.5%
	123,571	Ball Corp.		9,071,347
		Diversified Telecommunication Services—0.4%
	94,729	Intelsat SA(b)		1,192,638
		Electronic Equipment, Instruments & Components—2.1%
	125,677	FLIR Systems, Inc.		3,882,163
	30,687	Mercury Systems, Inc.(b)		423,787
	17,798	OSI Systems, Inc.(b)		1,196,204
	11,084	SuperCom Ltd. (Israel)(b)		134,781
				5,636,935

Number of Shares			Value
		Common Stocks (continued)
		IT Services—7.5%
	134,582	Booz Allen Hamilton Holding Corp., Class A	$	3,701,005
	21,712	CACI International, Inc., Class A(b)		1,915,867
	126,756	Computer Sciences Corp.		8,169,424
	66,563	Leidos Holdings, Inc.		2,771,683
	33,616	ManTech International Corp., Class A		982,596
	41,058	Science Applications International Corp.		2,057,006
				19,597,581
		Machinery—2.5%
	70,223	Oshkosh Corp.		3,780,806
	58,428	Woodward, Inc.		2,749,038
				6,529,844
		Software—2.2%
	139,891	FireEye, Inc.(b)		5,777,498
		Trading Companies & Distributors—0.4%
	24,395	Kaman Corp.		1,017,516
		Total Common Stocks (Cost $232,982,600)		262,645,037
		Money Market Fund—0.1%
	147,321	Invesco Premier Portfolio—Institutional Class(c) (Cost $147,321)		147,321
		Total Investments (Cost $233,129,921)—100.1%		262,792,358
		Other assets less liabilities—(0.1)%		(179,662	)
		Net Assets—100.0%	$	262,612,696

Notes to Schedule of Investments:

^(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.

^(b)  Non-income producing security.

^(c)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

26

Schedule of Investments^(a)

PowerShares Cleantech™ Portfolio (PZD)

April 30, 2015

Number of Shares			Value
		Common Stocks and Other Equity Interests—99.8%
		Aerospace & Defense—2.4%
	36,755	Hexcel Corp.	$	1,843,263
		Auto Components—5.9%
	37,826	BorgWarner, Inc.		2,239,299
	45,744	Johnson Controls, Inc.		2,304,583
				4,543,882
		Building Products—1.6%
	61,923	Kingspan Group PLC (Ireland)		1,229,552
		Chemicals—8.8%
	429	Gurit Holding AG (Switzerland)		199,184
	39,396	Koninklijke DSM NV (Netherlands)		2,249,197
	47,473	Novozymes A/S, Class B (Denmark)		2,194,022
	42,122	Umicore SA (Belgium)		2,094,019
				6,736,422
		Commercial Services & Supplies—3.2%
	34,441	Ceco Environmental Corp.		406,060
	21,879	MiX Telematics Ltd. ADR (South Africa)(b)		153,153
	34,849	Tetra Tech, Inc.		944,756
	96,652	Tomra Systems ASA (Norway)		939,521
				2,443,490
		Communications Equipment—0.8%
	30,281	CalAmp Corp.(b)		596,838
		Construction & Engineering—2.0%
	27,528	Aegion Corp.(b)		507,066
	32,335	Arcadis NV (Netherlands)		1,024,850
				1,531,916
		Electrical Equipment—17.8%
	103,410	ABB Ltd. (Switzerland)		2,271,510
	17,494	EnerSys		1,187,843
	35,077	Enphase Energy, Inc.(b)(c)		440,918
	95,624	Gamesa Corp. Tecnologica SA (Spain)(b)		1,287,961
	31,313	PowerSecure International, Inc.(b)		410,513
	17,117	Saft Groupe SA (France)		682,824
	28,272	Schneider Electric SE (France)		2,117,504
	39,787	Sensata Technologies Holding NV(b)		2,196,640
	41,071	SGL Carbon SE (Germany)(b)(c)		669,852
	51,569	Vestas Wind Systems A/S (Denmark)		2,346,931
				13,612,496
		Electronic Equipment, Instruments & Components—6.4%
	9,969	Badger Meter, Inc.		620,271
	21,300	Horiba Ltd. (Japan)		805,403
	23,229	Itron, Inc.(b)		832,992
	375,962	Opus Group AB (Sweden)(c)		414,216
	87,540	Trimble Navigation Ltd.(b)		2,226,142
				4,899,024
		Independent Power and Renewable Electricity Producers—4.2%
	32,451	Abengoa Yield PLC (Spain)(c)		1,100,413
	6,542,605	Energy Development Corp. (Philippines)		1,190,099
	24,531	Ormat Technologies, Inc.		897,589
				3,188,101
		Industrial Conglomerates—6.5%
	27,024	Raven Industries, Inc.		538,859
	13,086	Roper Technologies, Inc.		2,200,673

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrial Conglomerates (continued)
	20,340	Siemens AG (Germany)	$	2,222,446
				4,961,978
		Life Sciences Tools & Services—2.4%
	6,609	Eurofins Scientific (France)		1,864,018
		Machinery—15.7%
	111,227	Alfa Laval AB (Sweden)(c)		2,075,262
	18,732	CLARCOR, Inc.		1,217,580
	48,604	Donaldson Co., Inc.		1,816,332
	9,911	Kadant, Inc.		505,065
	8,561	Lindsay Corp.(c)		677,946
	72,823	Meyer Burger Technology AG (Switzerland)(b)(c)		499,011
	22,395	Pall Corp.		2,179,481
	23,938	Woodward, Inc.		1,126,283
	51,864	Xylem, Inc.		1,920,005
				12,016,965
		Professional Services—6.7%
	48,089	Intertek Group PLC (United Kingdom)		1,930,288
	22,228	Mistras Group, Inc.(b)		399,215
	44,340	Ricardo PLC (United Kingdom)		575,778
	1,124	SGS SA (Switzerland)		2,183,456
				5,088,737
		Real Estate Investment Trusts—0.6%
	25,300	Hannon Armstrong Sustainable Infrastructure Capital, Inc. REIT		480,700
		Semiconductors & Semiconductor Equipment—7.4%
	26,265	Advanced Energy Industries, Inc.(b)		642,442
	49,471	Cree, Inc.(b)(c)		1,567,241
	438,000	Lextar Electronics Corp. (Taiwan)		397,584
	15,925	Power Integrations, Inc.		788,128
	28,825	SMA Solar Technology AG (Germany)(b)(c)		432,011
	56,658	SunPower Corp.(b)		1,823,821
				5,651,227
		Software—7.4%
	25,040	ANSYS, Inc.(b)		2,149,434
	37,628	Autodesk, Inc.(b)		2,138,399
	20,827	Fleetmatics Group PLC(b)		949,295
	44,531	Silver Spring Networks, Inc.(b)(c)		432,841
				5,669,969
		Total Common Stocks and Other Equity Interests (Cost $60,021,869)		76,358,578
		Money Market Fund—0.0%
	24,715	Invesco Premier Portfolio—Institutional Class(d) (Cost $24,715)		24,715
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $60,046,584)—99.8%		76,383,293

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

27

PowerShares Cleantech™ Portfolio (PZD) (continued)

April 30, 2015

Number of Shares			Value
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—6.4%
	4,887,133	Invesco Liquid Assets Portfolio—Institutional Class(d)(e) (Cost $4,887,133)	$	4,887,133
		Total Investments (Cost $64,933,717)—106.2%		81,270,426
		Other assets less liabilities—(6.2)%		(4,758,456	)
		Net Assets—100.0%	$	76,511,970

Investment Abbreviations:

ADR—American Depositary Receipt

REIT—Real Estate Investment Trust

Notes to Schedule of Investments:

^(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.

^(b)  Non-income producing security.

^(c)  All or a portion of this security was out on loan at April 30, 2015.

^(d)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated.

^(e)  The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2I. The following table presents the Fund’s gross and net amount of assets available for offset by the Fund as of April 30, 2015.

Counterparty	Gross Amount of Securities on Loan at Value		Cash Collateral Received for Securities Loaned*			Net Amount
Citibank	$	4,640,967	$	(4,640,967	)	$	—

* Amount does not include excess collateral received, if any.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

28

Schedule of Investments^(a)

PowerShares DWA Momentum Portfolio (PDP)

April 30, 2015

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—31.1%
	27,958	Amazon.com, Inc.(b)	$	11,792,125
	279,783	AutoNation, Inc.(b)		17,220,644
	18,072	AutoZone, Inc.(b)		12,156,311
	260,588	Brinker International, Inc.		14,428,758
	156,459	CarMax, Inc.(b)		10,656,422
	113,944	Carter’s, Inc.		11,378,448
	46,394	Chipotle Mexican Grill, Inc.(b)		28,826,448
	348,254	Dillard’s, Inc., Class A		45,826,744
	252,839	Dollar Tree, Inc.(b)		19,319,428
	405,521	Domino’s Pizza, Inc.		43,735,440
	172,767	Foot Locker, Inc.		10,270,998
	801,875	Hanesbrands, Inc.		24,922,275
	286,899	Jarden Corp.(b)		14,683,491
	315,429	Kate Spade & Co.(b)		10,314,528
	127,674	L Brands, Inc.		11,408,949
	306,995	Lions Gate Entertainment Corp.		9,519,915
	163,469	Macy’s, Inc.		10,565,001
	310,460	NIKE, Inc., Class B		30,685,866
	250,452	O’Reilly Automotive, Inc.(b)		54,555,959
	118,772	Polaris Industries, Inc.		16,267,013
	323,392	Sally Beauty Holdings, Inc.(b)		10,093,064
	479,801	Service Corp. International		13,280,892
	172,411	Signet Jewelers Ltd.		23,125,487
	236,046	Starbucks Corp.		11,703,161
	151,283	TJX Cos., Inc. (The)		9,763,805
	231,877	Tractor Supply Co.		19,955,335
	314,605	Under Armour, Inc., Class A(b)		24,397,618
	400,162	VF Corp.		28,983,734
	382,696	Wyndham Worldwide Corp.		32,682,238
				582,520,097
		Consumer Staples—5.7%
	483,536	Altria Group, Inc.		24,200,977
	152,791	Brown-Forman Corp., Class B		13,786,332
	93,118	Constellation Brands, Inc., Class A(b)		10,796,101
	172,605	Hain Celestial Group, Inc. (The)(b)		10,397,725
	260,504	Hormel Foods Corp.		14,158,392
	144,463	Monster Beverage Corp.(b)		19,807,322
	1,765,566	Rite Aid Corp.(b)		13,612,514
				106,759,363
		Financials—4.7%
	105,937	ACE Ltd.		11,334,199
	78,721	Ameriprise Financial, Inc.		9,862,167
	176,717	Extra Space Storage, Inc. REIT		11,650,952
	329,496	HCC Insurance Holdings, Inc.		18,768,092
	178,864	Macerich Co. (The) REIT		14,623,921
	13,920	Markel Corp.(b)		10,309,709
	93,605	SL Green Realty Corp. REIT		11,453,508
				88,002,548
		Health Care—21.7%
	91,975	Actavis PLC(b)		26,016,049
	278,923	Alexion Pharmaceuticals, Inc.(b)		47,202,139
	158,052	Alkermes PLC(b)		8,751,339
	98,165	AmerisourceBergen Corp.		11,220,259
	72,817	Becton, Dickinson and Co.		10,257,731

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Health Care (continued)
	37,300	Biogen, Inc.(b)	$	13,947,589
	176,249	Cerner Corp.(b)		12,656,441
	110,214	Cigna Corp.		13,737,073
	100,505	Cooper Cos., Inc. (The)		17,896,925
	296,222	Henry Schein, Inc.(b)		40,612,036
	57,220	Illumina, Inc.(b)		10,542,785
	121,500	Incyte Corp.(b)		11,804,940
	322,028	Jazz Pharmaceuticals PLC(b)		57,546,404
	58,127	McKesson Corp.		12,985,572
	314,437	Medivation, Inc.(b)		37,965,123
	38,815	Mettler-Toledo International, Inc.(b)		12,304,743
	172,919	Mylan N.V(b)		12,495,127
	103,771	Regeneron Pharmaceuticals, Inc.(b)		47,471,082
				405,413,357
		Industrials—17.4%
	163,518	A.O. Smith Corp.		10,448,800
	358,755	Alaska Air Group, Inc.		22,981,845
	36,018	AMERCO		11,599,237
	419,656	American Airlines Group, Inc.		20,263,090
	640,271	CSX Corp.		23,107,380
	208,438	Danaher Corp.		17,066,903
	152,725	IDEX Corp.		11,455,902
	139,787	Lockheed Martin Corp.		26,084,254
	140,001	Middleby Corp. (The)(b)		14,187,701
	85,705	Northrop Grumman Corp.		13,201,998
	205,069	Old Dominion Freight Line, Inc.(b)		14,586,558
	103,077	Pall Corp.		10,031,454
	202,729	Roper Technologies, Inc.		34,092,936
	77,110	Snap-on, Inc.		11,531,800
	227,576	Southwest Airlines Co.		9,230,483
	146,923	Spirit Airlines, Inc.(b)		10,059,818
	104,750	Towers Watson & Co., Class A		13,293,299
	61,236	TransDigm Group, Inc.		12,989,993
	259,333	Union Pacific Corp.		27,548,945
	98,630	WABCO Holdings, Inc.(b)		12,274,504
				326,036,900
		Information Technology—8.1%
	444,864	Amphenol Corp., Class A		24,632,120
	442,022	Apple, Inc.		55,319,053
	206,732	Fiserv, Inc.(b)		16,042,403
	180,211	Gartner, Inc.(b)		14,953,909
	115,511	IPG Photonics Corp.(b)		10,231,964
	338,058	Skyworks Solutions, Inc.		31,185,851
				152,365,300
		Materials—8.6%
	68,730	Air Products & Chemicals, Inc.		9,857,944
	183,782	Ashland, Inc.		23,222,694
	557,560	Ball Corp.		40,930,480
	108,201	Ecolab, Inc.		12,116,348
	105,431	International Flavors & Fragrances, Inc.		12,098,207
	41,885	NewMarket Corp.		18,718,406
	218,134	RPM International, Inc.		10,370,090
	117,318	Sherwin-Williams Co. (The)		32,614,404
				159,928,573

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

29

PowerShares DWA Momentum Portfolio (PDP) (continued)

April 30, 2015

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Telecommunication Services—0.5%
	87,816	SBA Communications Corp., Class A(b)	$	10,170,849
		Utilities—2.2%
	291,720	CMS Energy Corp.		9,898,060
	97,964	NextEra Energy, Inc.		9,887,506
	105,256	Sempra Energy		11,175,029
	206,839	Wisconsin Energy Corp.		10,159,932
				41,120,527
		Total Common Stocks and Other Equity Interests (Cost $1,603,423,280)		1,872,317,514
		Money Market Fund—0.1%
	1,164,594	Invesco Premier Portfolio—Institutional Class(c) (Cost $1,164,594)		1,164,594
		Total Investments (Cost $1,604,587,874)—100.1%		1,873,482,108
		Other assets less liabilities—(0.1)%		(1,701,854	)
		Net Assets—100.0%	$	1,871,780,254

Investment Abbreviations:

REIT—Real Estate Investment Trust

Notes to Schedule of Investments:

^(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.

^(b)  Non-income producing security.

^(c)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

30

Schedule of Investments^(a)

PowerShares Global Listed Private Equity Portfolio (PSP)

April 30, 2015

Number of Shares			Value
		Common Stocks and Other Equity Interests—88.7%
		Capital Markets—52.9%
	3,141,245	3i Group PLC (United Kingdom)	$	24,450,314
	130,739	Alaris Royalty Corp. (Canada)(b)		3,750,820
	203,644	Altamir (France)		2,587,712
	701,246	American Capital Ltd.(c)		10,581,802
	471,070	Apollo Global Management LLC, Class A		10,768,660
	615,095	Apollo Investment Corp.(b)		4,920,760
	751,893	Ares Capital Corp.(b)		12,797,219
	134,194	Aurelius AG (Germany)		6,463,700
	279,274	BlackRock Capital Investment Corp.		2,552,564
	1,805,333	Brait SE (South Africa)(c)		13,672,704
	438,209	Bure Equity AB (Sweden)(c)		2,676,374
	57,296	Capital Southwest Corp.		2,727,863
	349,046	Carlyle Group LP (The)		10,537,699
	70,914	Deutsche Beteiligungs AG (Germany)		2,365,207
	486,379	Fifth Street Finance Corp.		3,467,882
	687,441	FS Investment Corp.(b)		7,197,507
	127,801	Gimv NV (Belgium)		5,950,267
	159,734	Golub Capital BDC, Inc.(b)		2,804,929
	1,090,198	GP Investments Ltd., Class A (Brazil)(c)		2,006,600
	233,146	Hercules Technology Growth Capital, Inc.		3,240,729
	1,447,660	Intermediate Capital Group PLC (United Kingdom)		11,735,246
	1,960,942	IP Group PLC (United Kingdom)(c)		5,936,550
	271,479	JAFCO Co. Ltd. (Japan)		10,265,250
	150,299	Main Street Capital Corp.(b)		4,708,868
	246,624	Medley Capital Corp.(b)		2,325,664
	190,310	New Mountain Finance Corp.(b)		2,843,231
	75,278	Partners Group Holding AG (Switzerland)		23,662,473
	278,364	PennantPark Investment Corp.		2,622,189
	392,396	Princess Private Equity Holding Ltd. (Guernsey)		3,524,190
	951,925	Prospect Capital Corp.(b)		7,948,574
	1,744,820	Ratos AB, Class B (Sweden)(b)		11,878,905
	103,818	Safeguard Scientifics, Inc.(c)		1,867,686
	139,898	Solar Capital Ltd.		2,764,384
	772,404	SVG Capital PLC (United Kingdom)(c)		5,925,463
	3,783,222	Symphony International Holdings Ltd. (Singapore)		3,064,410
	159,263	TCP Capital Corp.(b)		2,537,060
	272,296	TICC Capital Corp.(b)		1,827,106
	168,143	TPG Specialty Lending, Inc.(b)		3,053,477
	112,027	Triangle Capital Corp.(b)		2,692,009
	7,393,769	Zeder Investments Ltd. (South Africa)		5,479,088
				252,183,135
		Diversified Financial Services—22.4%
	96,457	Ackermans & van Haaren NV (Belgium)		11,781,252
	1,534,678	Better Capital PCC Ltd. (United Kingdom)(c)		2,196,275
	1,427,687	China Merchants China Direct Investments Ltd. (China)		3,821,950
	192,408	Compass Diversified Holdings		3,313,266
	168,079	Electra Private Equity PLC (United Kingdom)(c)		8,061,399
	225,942	Eurazeo SA (France)		16,180,688
	208,034	HgCapital Trust PLC (United Kingdom)		3,420,749
	265,092	JZ Capital Partners Ltd. (United Kingdom)		1,735,439
	656,524	Leucadia National Corp.		15,605,575

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Diversified Financial Services (continued)
	411,200	Onex Corp. (Canada)	$	24,663,513
	101,792	PICO Holdings, Inc.(c)		1,833,274
	114,316	Wendel SA (France)		14,039,407
				106,652,787
		Food Products—1.1%
	98,362	A/S Schouw & Co. (Denmark)		5,036,252
		Internet Software & Services—3.1%
	131,203	Actua Corp.(c)		1,898,507
	187,505	IAC/InterActiveCorp.		13,091,599
				14,990,106
		Machinery—3.6%
	4,251,380	Melrose Industries PLC (United Kingdom)		17,345,931
		Metals & Mining—5.6%
	10,673,200	Fosun International Ltd. (China)		26,713,466
		Total Common Stocks and Other Equity Interests (Cost $388,547,802)		422,921,677
		Money Market Fund—10.1%
	48,239,197	Invesco Premier Portfolio—Institutional Class(d) (Cost $48,239,197)		48,239,197
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $436,786,999)—98.8%		471,160,874
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—9.9%
	46,967,019	Invesco Liquid Assets Portfolio—Institutional Class(d)(e) (Cost $46,967,019)		46,967,019
		Total Investments (Cost $483,754,018)—108.7%		518,127,893
		Other assets less liabilities—(8.7)%		(41,521,466	)
		Net Assets—100.0%	$	476,606,427

Notes to Schedule of Investments:

^(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.

^(b)  All or a portion of this security was out on loan at April 30, 2015.

^(c)  Non-income producing security.

^(d)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

31

PowerShares Global Listed Private Equity Portfolio (PSP) (continued)

April 30, 2015

^(e)  The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2I. The following table presents the Fund’s gross and net amount of assets available for offset by the Fund as of April 30, 2015.

Counterparty	Gross Amount of Securities on Loan at Value		Cash Collateral Received for Securities Loaned*			Net Amount
Brown Brothers Harriman & Co.	$	45,374,865	$	(45,374,865	)	$	—

* Amount does not include excess collateral received, if any.

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

United Kingdom 17.0 % 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

32

Schedule of Investments^(a)

PowerShares Golden Dragon China Portfolio (PGJ)

April 30, 2015

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—30.2%
	48,564	500.com Ltd., Class A ADR (China)(b)(c)	$	869,781
	59,376	Bona FILM Group Ltd. ADR (China)(b)(c)		572,979
	66,388	China Automotive Systems, Inc. (China)(c)		487,952
	43,110	China Distance Education Holdings Ltd. ADR (China)(b)		890,653
	60,829	China Lodging Group Ltd. ADR (China)(c)		1,369,869
	102,517	China XD Plastics Co. Ltd. (China)(b)(c)		593,574
	308,706	Ctrip.com International Ltd. ADR (China)(c)		19,658,398
	113,923	E-Commerce China Dangdang, Inc., Class A ADR (China)(b)(c)		1,077,712
	16,446	eLong, Inc. ADR(b)(c)		288,298
	75,596	Homeinns Hotel Group ADR (China)(c)		2,114,420
	87,586	Jumei International Holding Ltd., Class A ADR (China)(b)(c)		1,838,430
	95,642	Kandi Technologies Group, Inc. (China)(b)(c)		1,154,399
	46,442	LightInTheBox Holding Co. Ltd. ADR (China)(b)(c)		226,637
	291,751	New Oriental Education & Technology Group, Inc. ADR (China)(c)		7,465,908
	202,687	Nord Anglia Education, Inc. (Hong Kong)(c)		5,279,996
	97,594	Qunar Cayman Islands Ltd., Class B ADR (China)(b)(c)		4,570,327
	90,112	TAL Education Group, Class A ADR (China)(b)(c)		3,311,616
	632,463	Vipshop Holdings Ltd., Class A ADR (China)(c)		17,892,378
				69,663,327
		Energy—3.4%
	23,766	China Petroleum & Chemical Corp. ADR (China)		2,245,174
	19,165	CNOOC Ltd. ADR (China)		3,282,006
	18,376	PetroChina Co. Ltd. ADR (China)		2,369,034
	26,179	Sino Clean Energy, Inc. (China)(c)		0
				7,896,214
		Financials—2.5%
	93,109	China HGS Real Estate, Inc.(c)		287,707
	19,318	China Life Insurance Co. Ltd. ADR (China)		1,403,839
	72,646	CNinsure, Inc. ADR (China)(c)		849,958
	173,117	E-House China Holdings Ltd. ADR (China)		1,177,196
	92,593	Nam Tai Property, Inc. (China)		472,224
	47,946	Noah Holdings Ltd. ADR (China)(b)(c)		1,624,890
				5,815,814
		Health Care—7.7%
	50,960	China Biologic Products, Inc. (China)(c)		4,873,814
	39,502	Concord Medical Services Holdings Ltd. ADR (China)		282,834
	181,409	Mindray Medical International Ltd., Class A ADR (China)		5,601,910
	114,852	Sinovac Biotech Ltd. (China)(b)(c)		567,369
	149,746	WuXi PharmaTech Cayman, Inc. ADR (China)(c)		6,464,535
				17,790,462
		Industrials—2.0%
	47,671	51job, Inc. ADR (China)(c)		1,716,156

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrials (continued)
	198,870	China Ming Yang Wind Power Group Ltd. ADR (China)(b)(c)	$	715,932
	77,026	China Yuchai International Ltd.		1,552,844
	36,793	Zhaopin Ltd., Class A ADR (China)(c)		564,405
				4,549,337
		Information Technology—46.0%
	98,091	21Vianet Group, Inc., Class A ADR (China)(c)		2,017,732
	72,415	58.com, Inc., Class A ADR (China)(b)(c)		5,523,816
	82,530	Autohome, Inc., Class A ADR (China)(c)		4,212,331
	75,884	Baidu, Inc., Class A ADR (China)(c)		15,198,047
	56,359	Bitauto Holdings Ltd. ADR (China)(c)		3,352,233
	113,451	Canadian Solar, Inc. (Canada)(c)		4,016,165
	25,305	Changyou.com Ltd., Class A ADR (China)(c)		854,297
	54,929	Cheetah Mobile, Inc., Class A ADR (China)(b)(c)		1,244,691
	82,737	China Digital TV Holding Co. Ltd. ADR (China)(c)		365,698
	31,411	China Mobile Games & Entertainment Group Ltd., Class A ADR (China)(b)		659,003
	34,289	ChinaCache International Holdings Ltd. ADR (China)(c)		483,132
	11,632	Daqo New Energy Corp. ADR (China)(c)		319,298
	120,295	Hollysys Automation Technologies Ltd. (China)		2,642,881
	89,406	JA Solar Holdings Co. Ltd. ADR (China)(b)(c)		895,848
	46,443	JinkoSolar Holding Co. Ltd. ADR (China)(b)(c)		1,301,333
	66,043	KongZhong Corp. ADR (China)		455,697
	34,102	Leju Holdings Ltd. ADR (China)(b)		359,094
	152,193	NetEase, Inc. ADR (China)		19,509,621
	164,066	NQ Mobile, Inc., Class A ADR (China)(b)(c)		630,013
	92,836	Perfect World Co. Ltd., Class B ADR (China)(c)		1,816,801
	66,982	Phoenix New Media Ltd., Class A ADR (China)(c)		482,940
	169,172	Qihoo 360 Technology Co. Ltd., Class A ADR (China)(c)		10,201,072
	169,674	ReneSola Ltd. ADR (China)(b)(c)		288,446
	249,112	Renren, Inc., Class A ADR (China)(c)		739,863
	129,037	Shanda Games Ltd., Class A ADR (China)(c)		883,903
	137,028	SINA Corp. (China)(c)		6,028,547
	79,545	Sohu.com, Inc. (China)(c)		5,285,765
	448,602	SouFun Holdings Ltd., Class A ADR (China)		3,709,939
	176,249	Trina Solar Ltd. ADR (China)(b)(c)		2,152,000
	265,776	Yingli Green Energy Holding Co. Ltd. ADR (China)(b)(c)		491,686
	270,259	Youku Tudou, Inc., Class A ADR (China)(b)(c)		5,053,843
	76,611	YY, Inc., Class A ADR (China)(b)(c)		4,869,395
				106,045,130
		Materials—0.2%
	353,184	Silvercorp Metals, Inc. (Canada)		437,948
		Telecommunication Services—7.6%
	214,145	China Mobile Ltd. ADR (China)		15,296,377
	13,588	China Telecom Corp. Ltd. ADR (China)		1,007,958

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

33

PowerShares Golden Dragon China Portfolio (PGJ) (continued)

April 30, 2015

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Telecommunication Services (continued)
	69,043	China Unicom (Hong Kong) Ltd. ADR (China)(c)	$	1,297,318
				17,601,653
		Utilities—0.4%
	14,707	Huaneng Power International, Inc. ADR (China)(b)		837,123
		Total Common Stocks and Other Equity Interests (Cost $199,455,303)		230,637,008
		Money Market Fund—0.1%
	284,026	Invesco Premier Portfolio—Institutional Class(d) (Cost $284,026)		284,026
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $199,739,329)—100.1%		230,921,034
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—9.6%
	22,131,346	Invesco Liquid Assets Portfolio—Institutional Class(d)(e) (Cost $22,131,346)		22,131,346
		Total Investments (Cost $221,870,675)—109.7%		253,052,380
		Other assets less liabilities—(9.7)%		(22,421,745	)
		Net Assets—100.0%	$	230,630,635

Investment Abbreviations:

ADR—American Depositary Receipt

Notes to Schedule of Investments:

^(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.

^(b)  All or a portion of this security was out on loan at April 30, 2015.

^(c)  Non-income producing security.

^(d)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated.

^(e)  The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2I. The following table presents the Fund’s gross and net amount of assets available for offset by the Fund as of April 30, 2015.

Counterparty	Gross Amount of Securities on Loan at Value		Cash Collateral Received for Securities Loaned*			Net Amount
Citibank	$	21,274,430	$	(21,274,430	)	$	—

* Amount does not include excess collateral received, if any.

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

China 94.9 % 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

34

Schedule of Investments^(a)

PowerShares S&P 500 BuyWrite Portfolio (PBP)

April 30, 2015

Number of Shares			Value
		Common Stocks and Other Equity Interests(b)—101.0%
		Consumer Discretionary—12.6%
	8,420	Amazon.com, Inc.(c)	$	3,551,388
	1,658	AutoNation, Inc.(c)		102,050
	705	AutoZone, Inc.(c)		474,225
	4,104	Bed Bath & Beyond, Inc.(c)		289,168
	6,438	Best Buy Co., Inc.		223,077
	5,007	BorgWarner, Inc.		296,414
	4,851	Cablevision Systems Corp., Class A		96,923
	4,644	CarMax, Inc.(c)		316,303
	9,961	Carnival Corp.		437,985
	10,116	CBS Corp., Class B		628,507
	686	Chipotle Mexican Grill, Inc.(c)		426,239
	6,099	Coach, Inc.		233,043
	56,190	Comcast Corp., Class A		3,245,534
	7,353	D.R. Horton, Inc.		186,766
	2,743	Darden Restaurants, Inc.		174,921
	6,419	Delphi Automotive PLC (United Kingdom)		532,777
	11,118	DIRECTV(c)		1,008,458
	3,287	Discovery Communications, Inc., Class A(c)		106,367
	5,976	Discovery Communications, Inc., Class C(c)		180,654
	6,710	Dollar General Corp.		487,884
	4,548	Dollar Tree, Inc.(c)		347,513
	2,186	Expedia, Inc., Class A		205,987
	2,126	Family Dollar Stores, Inc.		166,126
	87,477	Ford Motor Co.		1,382,137
	980	Fossil Group, Inc.(c)		82,300
	2,400	GameStop Corp., Class A		92,496
	5,016	Gannett Co., Inc.		172,149
	5,865	Gap, Inc. (The)		232,489
	2,672	Garmin Ltd.		120,748
	29,912	General Motors Co.		1,048,715
	3,377	Genuine Parts Co.		303,423
	5,961	Goodyear Tire & Rubber Co. (The)		169,084
	6,087	H&R Block, Inc.		184,071
	8,863	Hanesbrands, Inc.		275,462
	4,677	Harley-Davidson, Inc.		262,894
	1,518	Harman International Industries, Inc.		197,917
	2,474	Hasbro, Inc.		175,134
	29,141	Home Depot, Inc. (The)		3,117,504
	9,118	Interpublic Group of Cos., Inc. (The)		190,019
	14,535	Johnson Controls, Inc.		732,273
	4,467	Kohl’s Corp.		320,061
	5,436	L Brands, Inc.		485,761
	3,059	Leggett & Platt, Inc.		129,916
	3,948	Lennar Corp., Class A		180,818
	21,514	Lowe’s Cos., Inc.		1,481,454
	7,532	Macy’s, Inc.		486,793
	4,586	Marriott International, Inc., Class A		367,109
	7,480	Mattel, Inc.		210,637
	21,253	McDonald’s Corp.		2,051,977
	4,439	Michael Kors Holdings Ltd.(c)		274,597
	1,372	Mohawk Industries, Inc.(c)		238,042
	1,338	Netflix, Inc.(c)		744,597
	5,995	Newell Rubbermaid, Inc.		228,589
	11,044	News Corp., Class A(c)		174,274
	15,474	NIKE, Inc., Class B		1,529,450
	3,111	Nordstrom, Inc.		235,067

Number of Shares			Value
		Common Stocks and Other Equity Interests(b) (continued)
		Consumer Discretionary (continued)
	5,456	Omnicom Group, Inc.	$	413,347
	2,248	O’Reilly Automotive, Inc.(c)		489,682
	1,149	Priceline Group, Inc. (The)(c)		1,422,244
	7,328	PulteGroup, Inc.		141,430
	1,823	PVH Corp.		188,407
	1,332	Ralph Lauren Corp., Class A		177,702
	4,577	Ross Stores, Inc.		452,574
	3,642	Royal Caribbean Cruises Ltd.		247,875
	2,154	Scripps Networks Interactive, Inc., Class A		150,478
	14,163	Staples, Inc.		231,140
	33,160	Starbucks Corp.		1,644,073
	3,797	Starwood Hotels & Resorts Worldwide, Inc.		326,352
	14,085	Target Corp.		1,110,321
	2,489	Tiffany & Co.		217,738
	6,211	Time Warner Cable, Inc.		965,935
	18,365	Time Warner, Inc.		1,550,190
	15,096	TJX Cos., Inc. (The)		974,296
	3,012	Tractor Supply Co.		259,213
	2,465	TripAdvisor, Inc., Class A(c)		198,408
	40,433	Twenty-First Century Fox, Inc., Class A		1,377,957
	3,690	Under Armour, Inc., Class A(c)		286,159
	2,212	Urban Outfitters, Inc.(c)		88,568
	7,571	VF Corp.		548,368
	8,075	Viacom, Inc., Class B		560,809
	34,576	Walt Disney Co. (The)		3,759,103
	1,727	Whirlpool Corp.		303,261
	2,666	Wyndham Worldwide Corp.		227,676
	1,791	Wynn Resorts Ltd.		198,926
	9,577	Yum! Brands, Inc.		823,239
				50,931,737
		Consumer Staples—9.6%
	43,547	Altria Group, Inc.		2,179,527
	14,026	Archer-Daniels-Midland Co.		685,591
	3,446	Brown-Forman Corp., Class B		310,933
	3,930	Campbell Soup Co.		175,710
	2,901	Clorox Co. (The)		307,796
	86,895	Coca-Cola Co. (The)		3,524,461
	4,798	Coca-Cola Enterprises, Inc.		213,079
	18,855	Colgate-Palmolive Co.		1,268,564
	9,418	ConAgra Foods, Inc.		340,461
	3,722	Constellation Brands, Inc., Class A(c)		431,529
	9,729	Costco Wholesale Corp.		1,391,733
	24,882	CVS Health Corp.		2,470,534
	4,267	Dr Pepper Snapple Group, Inc.		318,233
	4,933	Estee Lauder Cos., Inc. (The), Class A		401,004
	13,351	General Mills, Inc.		738,844
	3,272	Hershey Co. (The)		300,762
	2,978	Hormel Foods Corp.		161,854
	2,158	J.M. Smucker Co. (The)		250,155
	5,598	Kellogg Co.		354,521
	2,681	Keurig Green Mountain, Inc.		311,988
	8,082	Kimberly-Clark Corp.		886,515
	13,002	Kraft Foods Group, Inc.		1,101,920
	10,865	Kroger Co. (The)		748,707
	7,962	Lorillard, Inc.		556,225
	2,836	McCormick & Co., Inc.		213,551

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

35

PowerShares S&P 500 BuyWrite Portfolio (PBP) (continued)

April 30, 2015

Number of Shares			Value
		Common Stocks and Other Equity Interests(b) (continued)
		Consumer Staples (continued)
	4,473	Mead Johnson Nutrition Co.	$	429,050
	3,535	Molson Coors Brewing Co., Class B		259,858
	36,475	Mondelez International, Inc., Class A		1,399,546
	3,233	Monster Beverage Corp.(c)		443,277
	32,779	PepsiCo, Inc.		3,117,939
	34,207	Philip Morris International, Inc.		2,855,258
	59,716	Procter & Gamble Co. (The)		4,748,019
	6,814	Reynolds American, Inc.		499,466
	13,098	Sysco Corp.		485,019
	6,461	Tyson Foods, Inc., Class A		255,210
	19,282	Walgreens Boots Alliance, Inc.		1,599,056
	34,924	Wal-Mart Stores, Inc.		2,725,818
	7,977	Whole Foods Market, Inc.		380,982
				38,842,695
		Energy—8.6%
	11,203	Anadarko Petroleum Corp.		1,054,202
	8,333	Apache Corp.		569,977
	9,609	Baker Hughes, Inc.		657,832
	9,136	Cabot Oil & Gas Corp.		308,979
	4,284	Cameron International Corp.(c)		234,849
	11,441	Chesapeake Energy Corp.		180,425
	41,576	Chevron Corp.		4,617,431
	1,937	Cimarex Energy Co.		240,963
	27,231	ConocoPhillips		1,849,530
	5,092	CONSOL Energy, Inc.		165,388
	8,545	Devon Energy Corp.		582,854
	1,486	Diamond Offshore Drilling, Inc.		49,736
	5,181	Ensco PLC, Class A		141,338
	12,128	EOG Resources, Inc.		1,200,066
	3,359	EQT Corp.		302,108
	92,756	Exxon Mobil Corp.		8,104,092
	5,118	FMC Technologies, Inc.(c)		225,704
	18,789	Halliburton Co.		919,722
	2,380	Helmerich & Payne, Inc.		185,569
	5,373	Hess Corp.		413,184
	37,681	Kinder Morgan, Inc.		1,618,399
	14,925	Marathon Oil Corp.		464,167
	6,038	Marathon Petroleum Corp.		595,166
	3,690	Murphy Oil Corp.		175,681
	9,065	National Oilwell Varco, Inc.		493,227
	3,555	Newfield Exploration Co.(c)		139,498
	5,350	Noble Corp. PLC		92,608
	8,552	Noble Energy, Inc.		433,757
	17,039	Occidental Petroleum Corp.		1,364,824
	4,608	ONEOK, Inc.		221,645
	12,018	Phillips 66		953,148
	3,294	Pioneer Natural Resources Co.		569,137
	3,571	QEP Resources, Inc.		80,347
	3,667	Range Resources Corp.		233,075
	28,201	Schlumberger Ltd.		2,668,097
	8,502	Southwestern Energy Co.(c)		238,311
	14,840	Spectra Energy Corp.		552,790
	2,762	Tesoro Corp.		237,062
	7,531	Transocean Ltd.		141,733
	11,386	Valero Energy Corp.		647,863

Number of Shares			Value
		Common Stocks and Other Equity Interests(b) (continued)
		Energy (continued)
	14,884	Williams Cos., Inc. (The)	$	761,912
				34,686,396
		Financials—16.3%
	7,238	ACE Ltd.		774,394
	1,207	Affiliated Managers Group, Inc.(c)		272,939
	9,705	Aflac, Inc.		611,803
	9,208	Allstate Corp. (The)		641,429
	19,382	American Express Co.		1,501,136
	30,348	American International Group, Inc.		1,708,289
	9,344	American Tower Corp. REIT		883,288
	4,036	Ameriprise Financial, Inc.		505,630
	6,197	Aon PLC		596,337
	3,456	Apartment Investment & Management Co., Class A REIT		130,395
	1,523	Assurant, Inc.		93,604
	2,920	AvalonBay Communities, Inc. REIT		479,873
	232,617	Bank of America Corp.		3,705,589
	24,631	Bank of New York Mellon Corp. (The)		1,042,876
	15,939	BB&T Corp.		610,304
	40,327	Berkshire Hathaway, Inc., Class B(c)		5,694,576
	2,805	BlackRock, Inc.		1,020,852
	3,387	Boston Properties, Inc. REIT		448,134
	12,197	Capital One Financial Corp.		986,127
	6,186	CBRE Group, Inc., Class A(c)		237,171
	25,512	Charles Schwab Corp. (The)		778,116
	5,105	Chubb Corp. (The)		502,077
	3,267	Cincinnati Financial Corp.		165,441
	67,087	Citigroup, Inc.		3,577,079
	7,012	CME Group, Inc., Class A		637,461
	3,944	Comerica, Inc.		186,985
	7,383	Crown Castle International Corp. REIT		616,702
	9,890	Discover Financial Services		573,323
	6,386	E*TRADE Financial Corp.(c)		183,853
	8,045	Equity Residential REIT		594,204
	1,440	Essex Property Trust, Inc. REIT		319,608
	18,017	Fifth Third Bancorp		360,340
	8,663	Franklin Resources, Inc.		446,664
	13,893	General Growth Properties, Inc. REIT		380,668
	10,983	Genworth Financial, Inc., Class A(c)		96,541
	8,959	Goldman Sachs Group, Inc. (The)		1,759,727
	9,308	Hartford Financial Services Group, Inc. (The)		379,487
	10,189	HCP, Inc. REIT		410,515
	7,728	Health Care REIT, Inc.		556,571
	16,751	Host Hotels & Resorts, Inc. REIT		337,365
	10,644	Hudson City Bancorp, Inc.		98,989
	17,912	Huntington Bancshares, Inc.		194,524
	2,477	IntercontinentalExchange, Inc.		556,161
	9,491	Invesco Ltd.(d)		393,117
	4,134	Iron Mountain, Inc. REIT		142,582
	82,443	JPMorgan Chase & Co.		5,215,344
	18,914	KeyCorp		273,307
	9,123	Kimco Realty Corp. REIT		219,864
	2,192	Legg Mason, Inc.		115,409
	6,972	Leucadia National Corp.		165,724
	5,670	Lincoln National Corp.		320,298
	6,602	Loews Corp.		274,907

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

36

PowerShares S&P 500 BuyWrite Portfolio (PBP) (continued)

April 30, 2015

Number of Shares			Value
		Common Stocks and Other Equity Interests(b) (continued)
		Financials (continued)
	2,939	M&T Bank Corp.	$	351,710
	3,113	Macerich Co. (The) REIT		254,519
	11,914	Marsh & McLennan Cos., Inc.		669,090
	6,048	McGraw Hill Financial, Inc.		630,806
	24,710	MetLife, Inc.		1,267,376
	3,932	Moody’s Corp.		422,769
	34,093	Morgan Stanley		1,272,010
	2,613	NASDAQ OMX Group, Inc. (The)		127,070
	8,877	Navient Corp.		173,457
	4,853	Northern Trust Corp.		354,997
	6,816	People’s United Financial, Inc.		102,990
	3,893	Plum Creek Timber Co., Inc. REIT		164,285
	11,514	PNC Financial Services Group, Inc. (The)		1,056,179
	6,048	Principal Financial Group, Inc.		309,174
	11,851	Progressive Corp. (The)		315,948
	11,325	Prologis, Inc. REIT		455,265
	10,039	Prudential Financial, Inc.		819,182
	3,210	Public Storage REIT		603,191
	4,976	Realty Income Corp. REIT		233,723
	29,695	Regions Financial Corp.		291,902
	6,874	Simon Property Group, Inc. REIT		1,247,562
	2,181	SL Green Realty Corp. REIT		266,867
	9,117	State Street Corp.		703,103
	11,599	SunTrust Banks, Inc.		481,358
	5,765	T. Rowe Price Group, Inc.		468,003
	2,811	Torchmark Corp.		157,725
	7,106	Travelers Cos., Inc. (The)		718,488
	39,387	U.S. Bancorp		1,688,521
	5,560	Unum Group		189,930
	7,315	Ventas, Inc. REIT		504,003
	3,864	Vornado Realty Trust REIT		399,885
	103,678	Wells Fargo & Co.		5,712,658
	11,609	Weyerhaeuser Co. REIT		365,800
	6,683	XL Group PLC		247,806
	4,487	Zions Bancorporation		127,139
				65,932,190
		Health Care—14.7%
	33,368	Abbott Laboratories		1,548,942
	35,245	AbbVie, Inc.		2,278,942
	8,635	Actavis PLC(c)		2,442,496
	7,777	Aetna, Inc.		831,128
	7,426	Agilent Technologies, Inc.		307,214
	4,470	Alexion Pharmaceuticals, Inc.(c)		756,458
	4,613	AmerisourceBergen Corp.		527,266
	16,781	Amgen, Inc.		2,649,888
	5,899	Anthem, Inc.		890,336
	11,998	Baxter International, Inc.		824,742
	4,617	Becton, Dickinson and Co.		650,397
	5,188	Biogen, Inc.(c)		1,939,949
	29,421	Boston Scientific Corp.(c)		524,282
	36,754	Bristol-Myers Squibb Co.		2,342,332
	1,642	C.R. Bard, Inc.		273,524
	7,300	Cardinal Health, Inc.		615,682
	17,703	Celgene Corp.(c)		1,912,986
	6,742	Cerner Corp.(c)		484,143
	5,715	Cigna Corp.		712,317

Number of Shares			Value
		Common Stocks and Other Equity Interests(b) (continued)
		Health Care (continued)
	3,818	DaVita HealthCare Partners, Inc.(c)	$	309,640
	3,104	DENTSPLY International, Inc.		158,304
	2,385	Edwards Lifesciences Corp.(c)		302,060
	21,621	Eli Lilly & Co.		1,553,901
	3,925	Endo International PLC(c)		329,955
	16,074	Express Scripts Holding Co.(c)		1,388,794
	32,935	Gilead Sciences, Inc.(c)		3,310,297
	6,510	HCA Holdings, Inc.(c)		481,805
	1,853	Henry Schein, Inc.(c)		254,046
	3,790	Hospira, Inc.(c)		330,829
	3,308	Humana, Inc.		547,805
	809	Intuitive Surgical, Inc.(c)		401,248
	61,484	Johnson & Johnson		6,099,213
	2,218	Laboratory Corp. of America Holdings(c)		265,184
	2,576	Mallinckrodt PLC(c)		291,552
	5,149	McKesson Corp.		1,150,287
	31,512	Medtronic PLC		2,346,068
	62,760	Merck & Co., Inc.		3,737,986
	8,995	Mylan NV(c)		649,979
	1,895	Patterson Cos., Inc.		88,980
	2,499	PerkinElmer, Inc.		128,099
	3,113	Perrigo Co. PLC		570,551
	135,526	Pfizer, Inc.		4,598,397
	3,191	Quest Diagnostics, Inc.		227,901
	1,631	Regeneron Pharmaceuticals, Inc.(c)		746,117
	6,220	St. Jude Medical, Inc.		435,711
	6,616	Stryker Corp.		610,260
	2,178	Tenet Healthcare Corp.(c)		104,239
	8,774	Thermo Fisher Scientific, Inc.		1,102,716
	21,089	UnitedHealth Group, Inc.		2,349,315
	2,013	Universal Health Services, Inc., Class B		235,420
	2,213	Varian Medical Systems, Inc.(c)		196,625
	5,353	Vertex Pharmaceuticals, Inc.(c)		659,918
	1,836	Waters Corp.(c)		229,849
	3,757	Zimmer Holdings, Inc.		412,669
	11,074	Zoetis, Inc.		491,907
				59,610,651
		Industrials—10.4%
	14,036	3M Co.		2,195,090
	3,785	ADT Corp. (The)		142,316
	2,123	Allegion PLC		129,821
	15,861	American Airlines Group, Inc.		765,848
	5,331	AMETEK, Inc.		279,451
	14,486	Boeing Co. (The)		2,076,423
	3,236	C.H. Robinson Worldwide, Inc.		208,366
	13,404	Caterpillar, Inc.		1,164,540
	2,153	Cintas Corp.		172,132
	21,904	CSX Corp.		790,515
	3,724	Cummins, Inc.		514,880
	13,578	Danaher Corp.		1,111,767
	7,507	Deere & Co.		679,534
	18,227	Delta Air Lines, Inc.		813,653
	3,605	Dover Corp.		272,971
	795	Dun & Bradstreet Corp. (The)		101,498
	10,495	Eaton Corp. PLC		721,321
	15,152	Emerson Electric Co.		891,392

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

37

PowerShares S&P 500 BuyWrite Portfolio (PBP) (continued)

April 30, 2015

Number of Shares			Value
		Common Stocks and Other Equity Interests(b) (continued)
		Industrials (continued)
	2,642	Equifax, Inc.	$	256,089
	4,240	Expeditors International of Washington, Inc.		194,319
	6,011	Fastenal Co.		256,189
	5,826	FedEx Corp.		987,915
	2,979	Flowserve Corp.		174,361
	3,268	Fluor Corp.		196,538
	6,968	General Dynamics Corp.		956,846
	222,563	General Electric Co.		6,027,006
	17,307	Honeywell International, Inc.		1,746,622
	7,719	Illinois Tool Works, Inc.		722,344
	5,823	Ingersoll-Rand PLC		383,386
	2,837	Jacobs Engineering Group, Inc.(c)		121,594
	2,153	Joy Global, Inc.		91,804
	2,441	Kansas City Southern		250,178
	1,825	L-3 Communications Holdings, Inc.		209,711
	5,932	Lockheed Martin Corp.		1,106,911
	7,729	Masco Corp.		204,741
	6,978	Nielsen NV		313,591
	6,798	Norfolk Southern Corp.		685,578
	4,387	Northrop Grumman Corp.		675,773
	7,839	PACCAR, Inc.		512,279
	2,358	Pall Corp.		229,481
	3,150	Parker Hannifin Corp.		375,984
	4,034	Pentair PLC (United Kingdom)		250,713
	4,458	Pitney Bowes, Inc.		99,725
	3,135	Precision Castparts Corp.		647,973
	4,676	Quanta Services, Inc.(c)		135,183
	6,796	Raytheon Co.		706,784
	5,543	Republic Services, Inc.		225,212
	2,988	Robert Half International, Inc.		165,685
	2,996	Rockwell Automation, Inc.		355,326
	2,940	Rockwell Collins, Inc.		286,150
	2,219	Roper Technologies, Inc.		373,169
	1,172	Ryder System, Inc.		111,762
	1,285	Snap-on, Inc.		192,172
	14,948	Southwest Airlines Co.		606,291
	3,481	Stanley Black & Decker, Inc.		343,575
	1,878	Stericycle, Inc.(c)		250,582
	6,122	Textron, Inc.		269,246
	9,288	Tyco International PLC		365,761
	19,488	Union Pacific Corp.		2,070,210
	15,367	United Parcel Service, Inc., Class B		1,544,844
	2,134	United Rentals, Inc.(c)		206,102
	18,273	United Technologies Corp.		2,078,554
	1,327	W.W. Grainger, Inc.		329,667
	9,442	Waste Management, Inc.		467,662
	4,031	Xylem, Inc.		149,228
				41,942,334
		Information Technology—20.1%
	13,890	Accenture PLC, Class A		1,286,909
	10,523	Adobe Systems, Inc.(c)		800,379
	3,955	Akamai Technologies, Inc.(c)		291,800
	1,389	Alliance Data Systems Corp.(c)		412,964
	6,654	Altera Corp.		277,339
	6,859	Amphenol Corp., Class A		379,783
	6,891	Analog Devices, Inc.		426,139

Number of Shares			Value
		Common Stocks and Other Equity Interests(b) (continued)
		Information Technology (continued)
	128,801	Apple, Inc.	$	16,119,445
	27,170	Applied Materials, Inc.		537,694
	5,013	Autodesk, Inc.(c)		284,889
	10,507	Automatic Data Processing, Inc.		888,262
	5,674	Avago Technologies Ltd. (Singapore)		663,177
	12,053	Broadcom Corp., Class A		532,803
	7,050	CA, Inc.		223,978
	112,880	Cisco Systems, Inc.		3,254,330
	3,534	Citrix Systems, Inc.(c)		237,343
	13,480	Cognizant Technology Solutions Corp., Class A(c)		789,119
	3,119	Computer Sciences Corp.		201,020
	28,113	Corning, Inc.		588,405
	24,349	eBay, Inc.(c)		1,418,573
	6,876	Electronic Arts, Inc.(c)		399,427
	43,962	EMC Corp.		1,183,017
	1,249	Equinix, Inc. REIT		319,657
	1,595	F5 Networks, Inc.(c)		194,622
	46,420	Facebook, Inc., Class A(c)		3,656,503
	6,304	Fidelity National Information Services, Inc.		393,937
	1,663	First Solar, Inc.(c)		99,231
	5,278	Fiserv, Inc.(c)		409,573
	3,091	FLIR Systems, Inc.		95,481
	6,315	Google, Inc., Class A(c)		3,465,483
	6,345	Google, Inc., Class C(c)		3,409,422
	2,302	Harris Corp.		184,712
	40,191	Hewlett-Packard Co.		1,325,097
	104,726	Intel Corp.		3,408,831
	20,327	International Business Machines Corp.		3,481,812
	6,119	Intuit, Inc.		613,919
	8,010	Juniper Networks, Inc.		211,704
	3,597	KLA-Tencor Corp.		211,504
	3,523	Lam Research Corp.		266,268
	5,289	Linear Technology Corp.		243,982
	21,586	MasterCard, Inc., Class A		1,947,273
	4,455	Microchip Technology, Inc.		212,303
	23,822	Micron Technology, Inc.(c)		670,113
	181,409	Microsoft Corp.		8,823,734
	4,216	Motorola Solutions, Inc.		251,906
	6,894	NetApp, Inc.		249,907
	11,418	NVIDIA Corp.		253,423
	70,887	Oracle Corp.		3,092,091
	7,227	Paychex, Inc.		349,715
	36,476	QUALCOMM, Inc.		2,480,368
	4,056	Red Hat, Inc.(c)		305,255
	13,380	salesforce.com, inc.(c)		974,332
	4,710	SanDisk Corp.		315,287
	7,260	Seagate Technology PLC		426,307
	4,220	Skyworks Solutions, Inc.		389,295
	15,089	Symantec Corp.		376,093
	8,983	TE Connectivity Ltd. (Switzerland)		597,819
	3,210	Teradata Corp.(c)		141,208
	23,155	Texas Instruments, Inc.		1,255,233
	3,642	Total System Services, Inc.		144,078
	2,326	VeriSign, Inc.(c)		147,724
	42,897	Visa, Inc., Class A		2,833,347

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

38

PowerShares S&P 500 BuyWrite Portfolio (PBP) (continued)

April 30, 2015

Number of Shares			Value
		Common Stocks and Other Equity Interests(b) (continued)
		Information Technology (continued)
	4,802	Western Digital Corp.	$	469,347
	11,531	Western Union Co. (The)		233,849
	23,117	Xerox Corp.		265,845
	5,781	Xilinx, Inc.		250,664
	19,251	Yahoo!, Inc.(c)		819,419
				81,464,468
		Materials—3.3%
	4,264	Air Products & Chemicals, Inc.		611,585
	1,495	Airgas, Inc.		151,414
	27,027	Alcoa, Inc.		362,702
	2,402	Allegheny Technologies, Inc.		81,644
	2,001	Avery Dennison Corp.		111,236
	3,037	Ball Corp.		222,946
	1,059	CF Industries Holdings, Inc.		304,431
	24,064	Dow Chemical Co. (The)		1,227,264
	20,021	E.I. du Pont de Nemours & Co.		1,465,537
	3,287	Eastman Chemical Co.		250,535
	5,956	Ecolab, Inc.		666,953
	2,948	FMC Corp.		174,846
	22,994	Freeport-McMoRan, Inc.		535,070
	1,785	International Flavors & Fragrances, Inc.		204,829
	9,350	International Paper Co.		502,282
	8,757	LyondellBasell Industries NV, Class A		906,525
	1,367	Martin Marietta Materials, Inc.		195,003
	3,703	MeadWestvaco Corp.		180,706
	10,687	Monsanto Co.		1,217,891
	6,876	Mosaic Co. (The)		302,544
	11,031	Newmont Mining Corp.		292,211
	7,055	Nucor Corp.		344,707
	3,631	Owens-Illinois, Inc.(c)		86,817
	3,008	PPG Industries, Inc.		666,452
	6,386	Praxair, Inc.		778,645
	4,647	Sealed Air Corp.		211,903
	1,784	Sherwin-Williams Co. (The)		495,952
	2,641	Sigma-Aldrich Corp.		366,888
	2,921	Vulcan Materials Co.		249,804
				13,169,322
		Telecommunication Services—2.4%
	114,769	AT&T, Inc.		3,975,598
	12,527	CenturyLink, Inc.		450,471
	22,167	Frontier Communications Corp.		152,066
	6,342	Level 3 Communications, Inc.(c)		354,771
	91,888	Verizon Communications, Inc.		4,634,831
				9,567,737
		Utilities—3.0%
	14,294	AES Corp. (The)		189,396
	2,646	AGL Resources, Inc.		133,014
	5,365	Ameren Corp.		219,643
	10,827	American Electric Power Co., Inc.		615,732
	9,504	CenterPoint Energy, Inc.		199,299
	6,091	CMS Energy Corp.		206,668
	6,477	Consolidated Edison, Inc.		398,659
	13,005	Dominion Resources, Inc.		932,198
	3,919	DTE Energy Co.		312,070

Number of Shares			Value
		Common Stocks and Other Equity Interests(b) (continued)
		Utilities (continued)
	15,646	Duke Energy Corp.	$	1,213,660
	7,205	Edison International		439,073
	3,991	Entergy Corp.		308,025
	7,005	Eversource Energy		341,564
	19,013	Exelon Corp.		646,822
	9,314	FirstEnergy Corp.		334,466
	1,759	Integrys Energy Group, Inc.		128,583
	9,806	NextEra Energy, Inc.		989,720
	6,992	NiSource, Inc.		303,593
	7,467	NRG Energy, Inc.		188,467
	5,590	Pepco Holdings, Inc.		145,228
	10,535	PG&E Corp.		557,512
	2,445	Pinnacle West Capital Corp.		149,634
	14,749	PPL Corp.		501,908
	11,193	Public Service Enterprise Group, Inc.		464,957
	3,160	SCANA Corp.		167,417
	5,120	Sempra Energy		543,590
	20,120	Southern Co. (The)		891,316
	5,208	TECO Energy, Inc.		98,692
	4,987	Wisconsin Energy Corp.		244,961
	11,189	Xcel Energy, Inc.		379,419
				12,245,286
		Total Investments (Cost $348,037,937)—101.0%		408,392,816
		Other assets less liabilities—(1.0)%		(4,122,798	)
		Net Assets—100.0%	$	404,270,018

Investment Abbreviations:

REIT—Real Estate Investment Trust

Notes to Schedule of Investments:

^(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.

^(b)  A portion of the securities in the Fund are subject to call options written. See Note 2G and Note 6.

^(c)  Non-income producing security.

^(d)  Affiliated company. The Fund’s Adviser is a wholly-owned subsidiary of Invesco Ltd. and therefore, Invesco Ltd. is considered to be affiliated. See Note 4.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

39

Schedule of Investments^(a)

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

April 30, 2015

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—18.6%
	73,693	Comcast Corp., Class A	$	4,256,508
	32,041	Darden Restaurants, Inc.		2,043,255
	82,911	Family Dollar Stores, Inc.		6,478,665
	160,704	Gap, Inc. (The)		6,370,307
	47,256	Genuine Parts Co.		4,245,952
	35,255	Harley-Davidson, Inc.		1,981,683
	68,638	Hasbro, Inc.		4,858,884
	38,247	Home Depot, Inc. (The)		4,091,664
	29,423	Lowe’s Cos., Inc.		2,026,068
	90,953	Mattel, Inc.		2,561,236
	45,067	McDonald’s Corp.		4,351,219
	66,133	NIKE, Inc., Class B		6,536,586
	54,930	Nordstrom, Inc.		4,150,511
	84,093	Omnicom Group, Inc.		6,370,886
	31,911	Ralph Lauren Corp., Class A		4,257,246
	63,906	Ross Stores, Inc.		6,319,025
	26,371	Target Corp.		2,078,826
	24,637	Tiffany & Co.		2,155,245
	96,474	TJX Cos., Inc. (The)		6,226,432
	58,317	VF Corp.		4,223,900
	61,817	Walt Disney Co. (The)		6,720,744
	82,621	Yum! Brands, Inc.		7,102,101
				99,406,943
		Consumer Staples—18.8%
	41,969	Altria Group, Inc.		2,100,548
	47,089	Brown-Forman Corp., Class B		4,248,840
	48,097	Campbell Soup Co.		2,150,417
	39,826	Clorox Co. (The)		4,225,539
	107,817	Coca-Cola Co. (The)		4,373,057
	94,977	Colgate-Palmolive Co.		6,390,052
	29,455	Costco Wholesale Corp.		4,213,538
	64,476	CVS Health Corp.		6,401,822
	52,823	Estee Lauder Cos., Inc. (The), Class A		4,293,982
	78,024	General Mills, Inc.		4,317,848
	44,036	Hershey Co. (The)		4,047,789
	114,068	Hormel Foods Corp.		6,199,596
	37,752	J.M. Smucker Co. (The)		4,376,212
	67,056	Kellogg Co.		4,246,656
	41,246	Kimberly-Clark Corp.		4,524,274
	93,765	Lorillard, Inc.		6,550,423
	85,033	McCormick & Co., Inc.		6,402,985
	45,817	PepsiCo, Inc.		4,358,113
	79,320	Procter & Gamble Co. (The)		6,306,733
	57,736	Sysco Corp.		2,137,964
	23,949	Walgreens Boots Alliance, Inc.		1,986,091
	81,976	Wal-Mart Stores, Inc.		6,398,227
				100,250,706
		Energy—1.3%
	20,613	Chevron Corp.		2,289,280
	51,514	Exxon Mobil Corp.		4,500,778
				6,790,058
		Financials—5.7%
	34,157	Aflac, Inc.		2,153,257
	17,697	Ameriprise Financial, Inc.		2,217,080

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	11,930	BlackRock, Inc.	$	4,341,804
	43,852	Chubb Corp. (The)		4,312,844
	28,925	Health Care REIT, Inc.		2,083,179
	85,055	Kimco Realty Corp. REIT		2,049,826
	20,844	Moody’s Corp.		2,241,147
	27,214	T. Rowe Price Group, Inc.		2,209,233
	78,904	Torchmark Corp.		4,427,303
	20,472	Travelers Cos., Inc. (The)		2,069,924
	40,570	Wells Fargo & Co.		2,235,407
				30,341,004
		Health Care—9.2%
	46,740	Abbott Laboratories		2,169,671
	19,105	AmerisourceBergen Corp.		2,183,701
	62,457	Baxter International, Inc.		4,293,294
	30,777	Becton, Dickinson and Co.		4,335,556
	12,927	C.R. Bard, Inc.		2,153,380
	16,531	Cigna Corp.		2,060,424
	26,908	DaVita HealthCare Partners, Inc.(b)		2,182,239
	85,253	DENTSPLY International, Inc.		4,347,903
	15,535	Henry Schein, Inc.(b)		2,129,849
	64,779	Johnson & Johnson		6,426,077
	9,823	McKesson Corp.		2,194,458
	56,558	Medtronic PLC		4,210,743
	23,510	Stryker Corp.		2,168,562
	55,558	UnitedHealth Group, Inc.		6,189,161
	18,607	Universal Health Services, Inc., Class B		2,176,089
				49,221,107
		Industrials—26.8%
	39,572	3M Co.		6,188,665
	82,354	AMETEK, Inc.		4,316,997
	14,275	Boeing Co. (The)		2,046,178
	91,748	C.H. Robinson Worldwide, Inc.		5,907,654
	53,360	Caterpillar, Inc.		4,635,917
	26,769	Cintas Corp.		2,140,182
	130,595	CSX Corp.		4,713,174
	16,139	Cummins, Inc.		2,231,378
	51,866	Danaher Corp.		4,246,788
	49,484	Deere & Co.		4,479,292
	63,510	Dover Corp.		4,808,977
	16,834	Dun & Bradstreet Corp. (The)		2,149,197
	116,295	Emerson Electric Co.		6,841,635
	94,038	Expeditors International of Washington, Inc.		4,309,762
	110,162	Fastenal Co.		4,695,104
	37,270	Fluor Corp.		2,241,418
	32,430	General Dynamics Corp.		4,453,288
	77,299	General Electric Co.		2,093,257
	42,097	Honeywell International, Inc.		4,248,429
	22,594	Illinois Tool Works, Inc.		2,114,346
	34,970	L-3 Communications Holdings, Inc.		4,018,403
	32,991	Lockheed Martin Corp.		6,156,121
	41,444	Norfolk Southern Corp.		4,179,627
	26,656	Northrop Grumman Corp.		4,106,090
	44,360	Pall Corp.		4,317,115
	36,568	Parker Hannifin Corp.		4,364,756
	60,125	Raytheon Co.		6,253,000

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

40

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

April 30, 2015

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrials (continued)
	22,424	Rockwell Collins, Inc.	$	2,182,528
	25,880	Roper Technologies, Inc.		4,352,240
	29,709	Snap-on, Inc.		4,442,981
	59,337	Union Pacific Corp.		6,303,369
	55,811	United Technologies Corp.		6,348,501
	28,168	W.W. Grainger, Inc.		6,997,776
				142,884,145
		Information Technology—5.8%
	37,014	Amphenol Corp., Class A		2,049,465
	51,049	Automatic Data Processing, Inc.		4,315,682
	4,092	Google, Inc., Class C(b)		2,198,795
	40,595	International Business Machines Corp.		6,953,518
	22,285	Intuit, Inc.		2,235,854
	47,398	Linear Technology Corp.		2,186,470
	52,823	Microsoft Corp.		2,569,311
	50,650	Oracle Corp.		2,209,353
	89,439	Paychex, Inc.		4,327,953
	31,865	QUALCOMM, Inc.		2,166,820
				31,213,221
		Materials—8.1%
	14,506	Air Products & Chemicals, Inc.		2,080,596
	41,358	Airgas, Inc.		4,188,738
	60,861	Ball Corp.		4,467,806
	30,511	E.I. du Pont de Nemours & Co.		2,233,405
	56,818	Ecolab, Inc.		6,362,480
	18,524	International Flavors & Fragrances, Inc.		2,125,629
	36,687	Monsanto Co.		4,180,850
	54,032	Praxair, Inc.		6,588,122
	15,165	Sherwin-Williams Co. (The)		4,215,870
	47,753	Sigma-Aldrich Corp.		6,633,847
				43,077,343
		Utilities—5.7%
	86,900	AGL Resources, Inc.		4,368,463
	39,081	American Electric Power Co., Inc.		2,222,536
	26,964	DTE Energy Co.		2,147,143
	28,221	Entergy Corp.		2,178,097
	43,639	Eversource Energy		2,127,838
	42,017	NextEra Energy, Inc.		4,240,776
	79,920	SCANA Corp.		4,234,161
	49,390	Southern Co. (The)		2,187,977
	88,773	Wisconsin Energy Corp.		4,360,530
	63,565	Xcel Energy, Inc.		2,155,489
				30,223,010
		Total Investments (Cost $462,658,223)—100.0%		533,407,537
		Other assets less liabilities—0.0%		129,021
		Net Assets—100.0%	$	533,536,558

Investment Abbreviations:

REIT—Real Estate Investment Trust

Notes to Schedule of Investments:

^(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.

^(b)  Non-income producing security.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

41

Schedule of Investments^(a)

PowerShares Water Resources Portfolio (PHO)

April 30, 2015

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Chemicals—2.2%
	857,400	Calgon Carbon Corp.	$	19,025,706
		Commercial Services & Supplies—4.3%
	1,356,063	Tetra Tech, Inc.		36,762,868
		Construction & Engineering—3.8%
	1,061,758	Aegion Corp.(b)		19,557,582
	1,340,315	Layne Christensen Co.(b)(c)		9,006,917
	172,249	Northwest Pipe Co.(b)		4,175,316
				32,739,815
		Electrical Equipment—2.8%
	668,687	Franklin Electric Co., Inc.		24,179,722
		Electronic Equipment, Instruments & Components—5.1%
	155,692	Badger Meter, Inc.		9,687,156
	945,303	Itron, Inc.(b)		33,898,566
				43,585,722
		Industrial Conglomerates—8.1%
	411,586	Roper Technologies, Inc.		69,216,417
		Life Sciences Tools & Services—8.4%
	572,931	Waters Corp.(b)		71,725,232
		Machinery—47.6%
	1,006,527	Energy Recovery, Inc.(b)		2,989,385
	1,110,082	Flowserve Corp.		64,973,100
	119,239	Gorman-Rupp Co. (The)		3,232,569
	380,818	Lindsay Corp.		30,156,977
	3,764,704	Mueller Water Products, Inc., Class A		35,237,629
	684,152	Pall Corp.		66,581,673
	1,037,601	Pentair PLC (United Kingdom)		64,486,902
	509,750	Toro Co. (The)		34,173,640
	276,651	Valmont Industries, Inc.		34,863,559
	627,223	Watts Water Technologies, Inc., Class A		34,215,015
	965,958	Xylem, Inc.		35,759,765
				406,670,214
		Water Utilities—17.7%
	617,448	American States Water Co.		23,703,829
	637,659	American Water Works Co., Inc.		34,765,169
	1,304,261	Aqua America, Inc.		34,980,280
	733,408	California Water Service Group		17,506,449
	5,844,861	Cia de Saneamento Basico do Estado de Sao Paulo ADR (Brazil)		34,426,231
	74,140	Connecticut Water Service, Inc.		2,669,040
	249,331	Consolidated Water Co. Ltd. (Cayman Islands)		2,994,465
				151,045,463
		Total Common Stocks and Other Equity Interests (Cost $690,791,714)		854,951,159

Number of Shares			Value
		Money Market Fund—0.0%
	213,264	Invesco Premier Portfolio—Institutional Class(d) (Cost $213,264)	$	213,264
		Total Investments (Cost $691,004,978)—100.0%		855,164,423
		Other assets less liabilities—(0.0)%		(5,572	)
		Net Assets—100.0%	$	855,158,851

Investment Abbreviations:

ADR—American Depositary Receipt

Notes to Schedule of Investments:

^(a) Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.

^(b) Non-income producing security.

^(c) Affiliated investments. See Note 4.

^(d) The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

42

Schedule of Investments^(a)

PowerShares WilderHill Clean Energy Portfolio (PBW)

April 30, 2015

Number of Shares			Value
		Common Stocks and Other Equity Interests—99.9%
		Auto Components—5.0%
	257,445	Fuel Systems Solutions, Inc.(b)	$	2,857,640
	67,105	Gentherm, Inc.(b)		3,538,447
	279,655	Quantum Fuel Systems Technologies Worldwide, Inc.(b)(c)		861,337
				7,257,424
		Automobiles—2.2%
	14,141	Tesla Motors, Inc.(b)(c)		3,196,573
		Chemicals—6.7%
	23,430	Air Products & Chemicals, Inc.		3,360,565
	62,242	Cytec Industries, Inc.		3,441,360
	95,337	OM Group, Inc.		2,863,924
				9,665,849
		Construction & Engineering—4.4%
	430,011	Ameresco, Inc., Class A(b)		2,889,674
	116,874	Quanta Services, Inc.(b)		3,378,827
				6,268,501
		Electric Utilities—2.3%
	93,766	ITC Holdings Corp.		3,375,576
		Electrical Equipment—19.4%
	1,578,079	Ballard Power Systems, Inc. (Canada)(b)(c)		3,519,116
	145,535	Broadwind Energy, Inc.(b)		577,774
	1,468,191	China Ming Yang Wind Power Group Ltd. ADR (China)(b)		5,285,488
	269,240	Enphase Energy, Inc.(b)		3,384,347
	2,556,733	FuelCell Energy, Inc.(b)(c)		3,144,781
	55,366	Hydrogenics Corp. (Canada)(b)(c)		673,250
	224,959	Orion Energy Systems, Inc.(b)		679,376
	1,235,276	Plug Power, Inc.(b)(c)		3,137,601
	263,433	PowerSecure International, Inc.(b)		3,453,607
	67,257	SolarCity Corp.(b)(c)		4,038,783
				27,894,123
		Electronic Equipment, Instruments & Components—5.9%
	89,188	Itron, Inc.(b)		3,198,282
	382,884	Maxwell Technologies, Inc.(b)(c)		2,144,150
	69,832	Universal Display Corp.(b)		3,077,496
				8,419,928
		Independent Power and Renewable Electricity Producers—12.2%
	91,979	Ormat Technologies, Inc.(c)		3,365,512
	121,279	Pattern Energy Group, Inc.		3,514,665
	288,885	Sky Solar Holdings Ltd. ADR (Hong Kong)(b)(c)		3,021,737
	95,869	TerraForm Power, Inc., Class A(b)		3,789,702
	276,656	Vivint Solar, Inc.(b)(c)		3,906,383
				17,597,999
		Internet Software & Services—1.9%
	275,336	Opower, Inc.(b)(c)		2,753,360
		Oil, Gas & Consumable Fuels—6.2%
	304,752	Amyris, Inc.(b)(c)		688,740
	374,539	Renewable Energy Group, Inc.(b)		3,449,504
	1,229,519	Solazyme, Inc.(b)(c)		4,733,648
				8,871,892

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Semiconductors & Semiconductor Equipment—29.2%
	123,481	Advanced Energy Industries, Inc.(b)	$	3,020,345
	425,573	Aixtron SE ADR (Germany)(b)(c)		2,842,828
	60,179	Amtech Systems, Inc.(b)		752,237
	96,983	Canadian Solar, Inc. (Canada)(b)		3,433,198
	85,824	Cree, Inc.(b)(c)		2,718,904
	122,779	Daqo New Energy Corp. ADR (China)(b)		3,370,284
	55,895	First Solar, Inc.(b)		3,335,255
	1,941,275	Hanwha Q Cells Co. Ltd. ADR (South Korea)(b)(c)		4,678,473
	346,313	JA Solar Holdings Co. Ltd. ADR (China)(b)(c)		3,470,056
	445,701	ReneSola Ltd. ADR (China)(b)(c)		757,692
	174,357	Rubicon Technology, Inc.(b)(c)		669,531
	132,724	SunEdison, Inc.(b)(c)		3,360,572
	105,728	SunPower Corp.(b)		3,403,384
	277,105	Trina Solar Ltd. ADR (China)(b)(c)		3,383,452
	1,493,288	Yingli Green Energy Holding Co. Ltd. ADR (China)(b)(c)		2,762,583
				41,958,794
		Software—4.5%
	284,572	EnerNOC, Inc.(b)		3,144,520
	340,583	Silver Spring Networks, Inc.(b)		3,310,467
				6,454,987
		Total Common Stocks and Other Equity Interests (Cost $146,743,162)		143,715,006
		Money Market Fund—0.0%
	23,112	Invesco Premier Portfolio—Institutional Class(d) (Cost $23,112)		23,112
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $146,766,274)—99.9%		143,738,118
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—26.5%
	38,048,190	Invesco Liquid Assets Portfolio—Institutional Class(d)(e) (Cost $38,048,190)		38,048,190
		Total Investments (Cost $184,814,464)—126.4%		181,786,308
		Other assets less liabilities—(26.4)%		(37,996,268	)
		Net Assets—100.0%	$	143,790,040

Investment Abbreviations:

ADR—American Depositary Receipt

Notes to Schedule of Investments:

^(a) Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

43

PowerShares WilderHill Clean Energy Portfolio (PBW) (continued)

April 30, 2015

^(b) Non-income producing security.

^(c) All or a portion of this security was out on loan at April 30, 2015.

^(d) The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated.

^(e) The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2I. The following table presents the Fund’s gross and net amount of assets available for offset by the Fund as of April 30, 2015.

Counterparty	Gross Amount of Securities on Loan at Value		Cash Collateral Received for Securities Loaned*			Net Amount
Citibank	$	34,377,182	$	(34,377,182	)	$	—

* Amount does not include excess collateral received, if any.

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

China 13.2 % 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

44

Schedule of Investments^(a)

PowerShares WilderHill Progressive Energy Portfolio (PUW)

April 30, 2015

Number of Shares			Value
		Common Stocks and Other Equity Interests—99.9%
		Aerospace & Defense—2.0%
	13,411	Hexcel Corp.	$	672,562
		Auto Components—6.1%
	13,357	Johnson Controls, Inc.		672,926
	28,589	Remy International, Inc.		636,105
	13,444	Tenneco, Inc.(b)		785,802
				2,094,833
		Automobiles—4.1%
	59,219	Kandi Technologies Group, Inc. (China)(b)(c)		714,773
	16,893	Tata Motors Ltd. ADR (India)		695,823
				1,410,596
		Building Products—5.7%
	9,563	A.O. Smith Corp.		611,076
	13,912	Apogee Enterprises, Inc.		732,050
	15,637	Owens Corning		604,526
				1,947,652
		Chemicals—4.6%
	14,713	LSB Industries, Inc.(b)		623,978
	12,649	Methanex Corp. (Canada)		761,596
	141,593	Rentech, Inc.(b)		169,912
				1,555,486
		Commercial Services & Supplies—1.6%
	27,702	Covanta Holding Corp.		562,074
		Construction & Engineering—5.3%
	37,322	Abengoa, Class B SA ADR (Spain)		597,152
	13,459	Chicago Bridge & Iron Co. NV(c)		641,321
	31,230	MasTec, Inc.(b)		560,266
				1,798,739
		Electric Utilities—4.6%
	339,824	Centrais Eletricas Brasileiras SA ADR (Brazil)(b)(c)		832,569
	153,730	Companhia Energetica de Minas Gerais ADR (Brazil)		756,351
				1,588,920
		Electrical Equipment—16.0%
	3,736	Acuity Brands, Inc.		623,725
	9,810	Eaton Corp. PLC		674,241
	10,797	Emerson Electric Co.		635,187
	9,520	EnerSys		646,408
	36,060	General Cable Corp.		588,139
	11,817	Global Power Equipment Group, Inc.		143,577
	162,401	GrafTech International Ltd.(b)		786,021
	11,918	Power Solutions International, Inc.(b)		760,368
	7,808	Regal Beloit Corp.		610,586
				5,468,252
		Electronic Equipment, Instruments & Components—2.0%
	32,506	Corning, Inc.		680,351
		Energy Equipment & Services—3.1%
	203,466	McDermott International, Inc.(b)		1,068,196
		Food & Staples Retailing—2.0%
	15,876	Andersons, Inc. (The)		677,746

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Independent Power and Renewable Electricity Producers—5.6%
	19,343	Abengoa Yield PLC (Spain)(c)	$	655,921
	29,645	Calpine Corp.(b)		646,558
	12,735	NRG Yield, Inc., Class A(c)		626,562
				1,929,041
		Industrial Conglomerates—1.8%
	21,144	Koninklijke Philips NV (Netherlands)		604,930
		Machinery—10.2%
	23,232	Altra Industrial Motion Corp.		612,628
	18,122	Chart Industries, Inc.(b)		734,847
	15,548	ESCO Technologies, Inc.		570,612
	11,878	Luxfer Holdings PLC ADR (United Kingdom)		152,632
	5,294	WABCO Holdings, Inc.(b)		658,838
	38,802	Westport Innovations, Inc. (Canada)(b)(c)		175,773
	12,046	Woodward, Inc.		566,764
				3,472,094
		Oil, Gas & Consumable Fuels—21.6%
	43,892	Cameco Corp. (Canada)		771,621
	46,693	Chesapeake Energy Corp.(c)		736,349
	117,552	Clean Energy Fuels Corp.(b)(c)		1,160,238
	98,936	Cosan Ltd., Class A (Brazil)		718,275
	18,387	Golar LNG Ltd. (Bermuda)		661,840
	25,013	Green Plains, Inc.		778,905
	13,416	Range Resources Corp.		852,721
	21,600	Sasol Ltd. ADR (South Africa)		869,400
	29,101	Southwestern Energy Co.(b)		815,701
				7,365,050
		Real Estate Investment Trusts—1.9%
	35,026	Hannon Armstrong Sustainable Infrastructure Capital, Inc. REIT		665,494
		Semiconductors & Semiconductor Equipment—1.7%
	20,110	Veeco Instruments, Inc.(b)		593,446
		Total Common Stocks and Other Equity Interests (Cost $30,960,681)		34,155,462
		Money Market Fund—0.2%
	53,145	Invesco Premier Portfolio—Institutional Class(d) (Cost $53,145)		53,145
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $31,013,826)—100.1%		34,208,607

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

45

PowerShares WilderHill Progressive Energy Portfolio (PUW) (continued)

April 30, 2015

Number of Shares			Value
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—8.6%
	2,936,841	Invesco Liquid Assets Portfolio—Institutional Class(d)(e) (Cost $2,936,841)	$	2,936,841
		Total Investments (Cost $33,950,667)—108.7%		37,145,448
		Other assets less liabilities—(8.7)%		(2,975,695	)
		Net Assets—100.0%	$	34,169,753

Investment Abbreviations:

ADR—American Depositary Receipt

REIT—Real Estate Investment Trust

Notes to Schedule of Investments:

^(a) Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.

^(b) Non-income producing security.

^(c) All or a portion of this security was out on loan at April 30, 2015.

^(d) The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated.

^(e) The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2I. The following table presents the Fund’s gross and net amount of assets available for offset by the Fund as of April 30, 2015.

Counterparty	Gross Amount of Securities on Loan at Value		Cash Collateral Received for Securities Loaned*			Net Amount
Brown Brothers Harriman & Co.	$	2,885,416	$	(2,885,416	)	$	—

* Amount does not include excess collateral received, if any.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

46

(This Page Intentionally Left Blank)

Statements of Assets and Liabilities

April 30, 2015

	PowerShares Aerospace & Defense Portfolio (PPA)			PowerShares Cleantech™ Portfolio (PZD)			PowerShares DWA Momentum Portfolio (PDP)			PowerShares Global Listed Private Equity Portfolio (PSP)
Assets:
Unaffiliated investments, at value(a)	$	262,645,037		$	76,358,578		$	1,872,317,514		$	422,921,677
Affiliated investments, at value		147,321			4,911,848			1,164,594			95,206,216
Total investments, at value		262,792,358			81,270,426			1,873,482,108			518,127,893
Foreign currencies, at value		—			43,330			—			267,121
Receivables:
Investments sold		12,772,692			—			—			5,019,916
Dividends		97,577			102,584			395,904			781,252
Foreign tax reclaims		—			72,399			—			659,630
Securities lending		—			9,902			—			95,957
Settlement proceeds		—			26,267			—			—
Total Assets		275,662,627			81,524,908			1,873,878,012			524,951,769
Liabilities:
Due to custodian		—			—			1,208			—
Payables:
Shares repurchased		12,783,432			—			—			—
Expenses recaptured		2,541			—			—			—
Collateral upon return of securities loaned		—			4,887,133			—			46,967,019
Unrealized depreciation on swap agreements		—			—			—			541,193
Investments purchased		—			—			—			95,915
Payable for swaps		—			—			—			81,003
Open written options, at value		—			—			—			—
Accrued advisory fees		115,647			28,261			800,019			186,348
Accrued trustees’ and officer’s fees		21,851			19,604			50,612			31,237
Accrued expenses		126,460			77,940			1,245,919			442,627
Total Liabilities		13,049,931			5,012,938			2,097,758			48,345,342
Net Assets	$	262,612,696		$	76,511,970		$	1,871,780,254		$	476,606,427
Net Assets Consist of:
Shares of beneficial interest	$	263,164,723		$	144,142,791		$	1,854,241,573		$	550,961,315
Undistributed net investment income (loss)		251,344			212,327			1,729,755			(8,610,255	)
Undistributed net realized gain (loss)		(30,465,808	)		(84,175,541	)		(253,085,308	)		(99,541,877	)
Net unrealized appreciation (depreciation)		29,662,437			16,332,393			268,894,234			33,797,244
Net Assets	$	262,612,696		$	76,511,970		$	1,871,780,254		$	476,606,427
Shares outstanding (unlimited amount authorized, $0.01 par value)		7,350,000			2,500,000			44,100,000			39,900,000
Net asset value	$	35.73		$	30.60		$	42.44		$	11.95
Market price	$	35.71		$	30.54		$	42.43		$	11.93
Unaffiliated investments, at cost	$	232,982,600		$	60,021,869		$	1,603,423,280		$	388,547,802
Affiliated investments, at cost	$	147,321		$	4,911,848		$	1,164,594		$	95,206,216
Total investments, at cost	$	233,129,921		$	64,933,717		$	1,604,587,874		$	483,754,018
Foreign currencies, at cost	$	—		$	43,329		$	—		$	261,586
Premium received on written options	$	—		$	—		$	—		$	—
(a) Includes securities on loan with an aggregate value of	$	—		$	4,640,967		$	—		$	45,374,865

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

48

PowerShares Golden Dragon China Portfolio (PGJ)			PowerShares S&P 500 BuyWrite Portfolio (PBP)			PowerShares S&P 500® High  Quality Portfolio (SPHQ)			PowerShares Water Resources Portfolio (PHO)			PowerShares WilderHill Clean Energy Portfolio (PBW)			PowerShares WilderHill Progressive Energy Portfolio (PUW)
$	230,637,008		$	407,999,699		$	533,407,537		$	845,944,242		$	143,715,006		$	34,155,462
	22,415,372			393,117			—			9,220,181			38,071,302			2,989,986
	253,052,380			408,392,816			533,407,537			855,164,423			181,786,308			37,145,448
	—			—			—			—			—			—
	—			—			—			—			—			—
	33,911			372,783			522,594			1,042,935			13,158			17,061
	—			—			—			—			32,697			18,538
	74,481			—			—			—			293,654			16,907
	—			—			—			—			—			—
	253,160,772			408,765,599			533,930,131			856,207,358			182,125,817			37,197,954
	—			86,341			45,812			—			—			—
	—			—			—			—			—			—
	—			—			—			—			—			—
	22,131,346			—			—			—			38,048,190			2,936,841
	—			—			—			—			—			—
	—			38,859			—			—			—			—
	—			—			—			—			—			—
	—			4,121,590			—			—			—			—
	91,956			248,791			84,116			352,787			60,573			8,228
	33,947			—			25,439			88,486			45,842			16,159
	272,888			—			238,206			607,234			181,172			66,973
	22,530,137			4,495,581			393,573			1,048,507			38,335,777			3,028,201
$	230,630,635		$	404,270,018		$	533,536,558		$	855,158,851		$	143,790,040		$	34,169,753
$	498,684,269		$	394,867,673		$	575,284,874		$	1,249,724,657		$	1,540,220,775		$	66,891,907
	(241,593	)		863,901			1,161,942			1,621,548			(127,786	)		84,171
	(298,993,746	)		(52,666,951	)		(113,659,572	)		(560,346,799	)		(1,393,274,793	)		(36,001,106	)
	31,181,705			61,205,395			70,749,314			164,159,445			(3,028,156	)		3,194,781
$	230,630,635		$	404,270,018		$	533,536,558		$	855,158,851		$	143,790,040		$	34,169,753
	6,850,000			19,050,000			22,950,000			33,950,000			24,950,000			1,200,000
$	33.67		$	21.22		$	23.25		$	25.19		$	5.76		$	28.47
$	33.62		$	21.22		$	23.24		$	25.17		$	5.76		$	28.47
$	199,455,303		$	347,722,881		$	462,658,223		$	676,170,244		$	146,743,162		$	30,960,681
$	22,415,372		$	315,056		$	—		$	14,834,734		$	38,071,302		$	2,989,986
$	221,870,675		$	348,037,937		$	462,658,223		$	691,004,978		$	184,814,464		$	33,950,667
$	—		$	—		$	—		$	—		$	—		$	—
$	—		$	4,972,106		$	—		$	—		$	—		$	—
$	21,274,430		$	—		$	—		$	—		$	34,377,182		$	2,885,416

49

Statements of Operations

For the year ended April 30, 2015

	PowerShares Aerospace & Defense Portfolio (PPA)			PowerShares Cleantech™ Portfolio (PZD)			PowerShares DWA Momentum Portfolio (PDP)			PowerShares Global Listed Private Equity Portfolio (PSP)
Investment Income:
Unaffiliated dividend income	$	2,962,920		$	1,210,046		$	15,294,201		$	20,518,581
Affiliated dividend income		24			7			205			11,606
Securities lending income		—			134,369			—			645,609
Foreign withholding tax		—			(122,747	)		(7,199	)		(859,629	)
Total Income		2,962,944			1,221,675			15,287,207			20,316,167
Expenses:
Advisory fees		925,796			389,624			7,450,484			2,759,566
Sub-licensing fees		111,095			58,444			1,490,096			551,913
Recapture (Note 3)		63,185			—			—			32,811
Accounting & administration fees		37,556			36,770			272,871			112,888
Professional fees		26,921			26,096			43,924			36,766
Trustees’ and officer’s fees		10,902			9,355			34,010			18,980
Custodian & transfer agent fees		9,029			18,699			18,677			54,547
Other expenses		37,566			22,424			135,297			69,848
Total Expenses		1,222,050			561,412			9,445,359			3,637,319
Less: Waivers		(182	)		(35,470	)		(1,636	)		(97,879	)
Net Expenses		1,221,868			525,942			9,443,723			3,539,440
Net Investment Income		1,741,076			695,733			5,843,484			16,776,727
Realized and Unrealized Gain (Loss):
Net realized gain (loss) from:
Investment securities		(962,606	)		1,132,101			(51,368,226	)		(12,189,011	)
In-kind redemptions		6,381,025			3,057,156			194,299,202			50,657,555
Swap agreements		—			—			—			9,632,387
Written options		—			—			—			—
Foreign currencies		—			(4,256	)		—			(147,747	)
Net realized gain (loss)		5,418,419			4,185,001			142,930,976			47,953,184
Change in net unrealized appreciation (depreciation) on:
Investment securities		12,880,679			(7,830,756	)		44,967,654			(44,859,446	)
Swap agreements		—			—			—			2,733,881
Written options		—			—			—			—
Foreign currencies		—			(7,454	)		—			(60,472	)
Net change in unrealized appreciation (depreciation)		12,880,679			(7,838,210	)		44,967,654			(42,186,037	)
Net realized and unrealized gain (loss)		18,299,098			(3,653,209	)		187,898,630			5,767,147
Net increase (decrease) in net assets resulting from operations	$	20,040,174		$	(2,957,476	)	$	193,742,114		$	22,543,874

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

50

PowerShares Golden Dragon China Portfolio (PGJ)			PowerShares S&P 500 BuyWrite Portfolio (PBP)			PowerShares S&P 500® High Quality Portfolio (SPHQ)			PowerShares Water Resources Portfolio (PHO)			PowerShares WilderHill Clean Energy Portfolio (PBW)			PowerShares WilderHill Progressive Energy Portfolio (PUW)
$	2,355,403		$	7,308,730		$	9,502,300		$	10,921,787		$	585,908		$	597,448
	51			8,408			67			153			30			6
	1,170,490			—			—			—			4,494,183			315,498
	(122,732	)		(1,069	)		—			—			(28,818	)		(8,755	)
	3,403,212			7,316,069			9,502,367			10,921,940			5,051,303			904,197
	1,232,008			2,638,543			1,300,269			4,665,630			818,674			189,077
	246,401			—			208,043			699,845			163,735			37,816
	6,686			—			—			—			—			—
	52,350			—			82,886			187,689			37,291			36,770
	33,890			—			30,169			36,575			27,902			25,764
	12,804			—			15,709			26,072			11,158			8,597
	106,158			—			12,371			15,157			63,072			9,838
	34,514			—			43,970			103,522			58,713			17,410
	1,724,811			2,638,543			1,693,417			5,734,490			1,180,545			325,272
	(378	)		(444	)		(392,591	)		(1,295	)		(34,645	)		(60,614	)
	1,724,433			2,638,099			1,300,826			5,733,195			1,145,900			264,658
	1,678,779			4,677,970			8,201,541			5,188,745			3,905,403			639,539
	(11,039,224	)		1,026,656			(254,921	)		(21,203,096	)		(29,669,340	)		(2,764,126	)
	44,345,686			25,776,135			44,045,376			47,298,054			18,811,414			3,407,454
	—			—			—			—			—			—
	—			(27,993,800	)		—			—			—			—
	—			—			—			—			—			—
	33,306,462			(1,191,009	)		43,790,455			26,094,958			(10,857,926	)		643,328
	5,108,538			8,064,823			(389,529	)		(53,398,337	)		(13,364,817	)		(6,100,025	)
	—			—			—			—			—			—
	—			1,667,879			—			—			—			—
	—			—			—			—			—			—
	5,108,538			9,732,702			(389,529	)		(53,398,337	)		(13,364,817	)		(6,100,025	)
	38,415,000			8,541,693			43,400,926			(27,303,379	)		(24,222,743	)		(5,456,697	)
$	40,093,779		$	13,219,663		$	51,602,467		$	(22,114,634	)	$	(20,317,340	)	$	(4,817,158	)

51

Statements of Changes in Net Assets

For the years ended April 30, 2015 and 2014

	PowerShares Aerospace & Defense Portfolio (PPA)						PowerShares Cleantech™ Portfolio (PZD)
	2015			2014			2015			2014
Operations:
Net investment income	$	1,741,076		$	881,865		$	695,733		$	452,908
Net realized gain (loss)		5,418,419			5,236,366			4,185,001			(41,079	)
Net change in unrealized appreciation (depreciation)		12,880,679			17,672,034			(7,838,210	)		17,269,664
Net increase (decrease) in net assets resulting from operations		20,040,174			23,790,265			(2,957,476	)		17,681,493
Distributions to Shareholders from:
Net investment income		(1,474,100	)		(993,578	)		(635,362	)		(713,573	)
Shareholder Transactions:
Proceeds from shares sold		163,593,010			48,361,326			4,394,744			1,498,269
Value of shares repurchased		(17,632,615	)		(20,678,371	)		(8,825,354	)		(5,244,820	)
Net increase (decrease) in net assets resulting from shares transactions		145,960,395			27,682,955			(4,430,610	)		(3,746,551	)
Increase (Decrease) in Net Assets		164,526,469			50,479,642			(8,023,448	)		13,221,369
Net Assets:
Beginning of year		98,086,227			47,606,585			84,535,418			71,314,049
End of year	$	262,612,696		$	98,086,227		$	76,511,970		$	84,535,418
Undistributed net investment income (loss) at end of year	$	251,344		$	(15,632	)	$	212,327		$	156,212
Changes in Shares Outstanding:
Shares sold		4,800,000			1,750,000			150,000			50,000
Shares repurchased		(500,000	)		(750,000	)		(300,000	)		(200,000	)
Shares outstanding, beginning of year		3,050,000			2,050,000			2,650,000			2,800,000
Shares outstanding, end of year		7,350,000			3,050,000			2,500,000			2,650,000

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

52

PowerShares DWA Momentum Portfolio (PDP)						PowerShares Global Listed Private Equity Portfolio (PSP)						PowerShares Golden Dragon China Portfolio (PGJ)
2015			2014			2015			2014			2015			2014
$	5,843,484		$	1,800,480		$	16,776,727		$	15,159,334		$	1,678,779		$	2,006,913
	142,930,976			56,424,570			47,953,184			35,699,870			33,306,462			39,890,527
	44,967,654			95,556,132			(42,186,037	)		13,948,978			5,108,538			28,415,205
	193,742,114			153,781,182			22,543,874			64,808,182			40,093,779			70,312,645
	(4,082,216	)		(3,053,165	)		(27,591,991	)		(65,805,444	)		(2,129,714	)		(2,898,245	)
	1,257,742,866			391,192,705			134,129,178			239,772,662			79,503,122			123,413,615
	(836,066,053	)		(158,406,142	)		(236,075,900	)		(63,665,641	)		(145,405,126	)		(114,003,682	)
	421,676,813			232,786,563			(101,946,722	)		176,107,021			(65,902,004	)		9,409,933
	611,336,711			383,514,580			(106,994,839	)		175,109,759			(27,937,939	)		76,824,333
	1,260,443,543			876,928,963			583,601,266			408,491,507			258,568,574			181,744,241
$	1,871,780,254		$	1,260,443,543		$	476,606,427		$	583,601,266		$	230,630,635		$	258,568,574
$	1,729,755		$	(31,513	)	$	(8,610,255	)	$	(23,516,305	)	$	(241,593	)	$	(1,293,541	)
	30,900,000			11,150,000			11,400,000			20,100,000			2,500,000			4,350,000
	(20,900,000	)		(4,650,000	)		(21,000,000	)		(5,500,000	)		(5,000,000	)		(4,250,000	)
	34,100,000			27,600,000			49,500,000			34,900,000			9,350,000			9,250,000
	44,100,000			34,100,000			39,900,000			49,500,000			6,850,000			9,350,000

53

Statements of Changes in Net Assets (continued)

For the years ended April 30, 2015 and 2014

	PowerShares S&P 500 BuyWrite Portfolio (PBP)						PowerShares S&P 500® High Quality Portfolio (SPHQ)
	2015			2014			2015			2014
Operations:
Net investment income	$	4,677,970		$	2,774,392		$	8,201,541		$	5,453,071
Net realized gain (loss)		(1,191,009	)		(8,894,757	)		43,790,455			15,539,020
Net change in unrealized appreciation (depreciation)		9,732,702			24,139,096			(389,529	)		29,453,789
Net increase (decrease) in net assets resulting from operations		13,219,663			18,018,731			51,602,467			50,445,880
Distributions to Shareholders from:
Net investment income		(13,360,682	)		(12,551,907	)		(7,699,802	)		(5,320,142	)
Net realized gains		(3,220,888	)		(67,519	)		—			—
Total distributions to shareholders		(16,581,570	)		(12,619,426	)		(7,699,802	)		(5,320,142	)
Shareholder Transactions:
Proceeds from shares sold		231,535,424			72,951,504			242,538,333			137,479,261
Value of shares repurchased		(73,361,924	)		(34,114,213	)		(118,590,643	)		(45,654,865	)
Net increase (decrease) in net assets resulting from shares transactions		158,173,500			38,837,291			123,947,690			91,824,396
Increase (Decrease) in Net Assets		154,811,593			44,236,596			167,850,355			136,950,134
Net Assets:
Beginning of year		249,458,425			205,221,829			365,686,203			228,736,069
End of year	$	404,270,018		$	249,458,425		$	533,536,558		$	365,686,203
Undistributed net investment income (loss) at end of year	$	863,901		$	492,190		$	1,161,942		$	660,203
Changes in Shares Outstanding:
Shares sold		10,900,000			3,500,000			10,650,000			7,000,000
Shares repurchased		(3,550,000	)		(1,650,000	)		(5,200,000	)		(2,300,000	)
Shares outstanding, beginning of year		11,700,000			9,850,000			17,500,000			12,800,000
Shares outstanding, end of year		19,050,000			11,700,000			22,950,000			17,500,000

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

54

PowerShares Water Resources Portfolio (PHO)						PowerShares WilderHill Clean Energy Portfolio (PBW)						PowerShares WilderHill Progressive Energy Portfolio (PUW)
2015			2014			2015			2014			2015			2014
$	5,188,745		$	6,200,491		$	3,905,403		$	3,171,838		$	639,539		$	317,552
	26,094,958			84,949,788			(10,857,926	)		31,745,124			643,328			1,303,228
	(53,398,337	)		62,930,259			(13,364,817	)		24,395,717			(6,100,025	)		5,713,352
	(22,114,634	)		154,080,538			(20,317,340	)		59,312,679			(4,817,158	)		7,334,132
	(5,760,750	)		(5,035,124	)		(4,135,076	)		(5,058,769	)		(626,095	)		(473,310	)
	—			—			—			—			—			—
	(5,760,750	)		(5,035,124	)		(4,135,076	)		(5,058,769	)		(626,095	)		(473,310	)
	35,679,168			157,626,289			28,214,118			125,579,841			5,044,172			5,983,872
	(142,892,020	)		(193,488,911	)		(78,072,886	)		(104,226,358	)		(11,250,272	)		(5,609,711	)
	(107,212,852	)		(35,862,622	)		(49,858,768	)		21,353,483			(6,206,100	)		374,161
	(135,088,236	)		113,182,792			(74,311,184	)		75,607,393			(11,649,353	)		7,234,983
	990,247,087			877,064,295			218,101,224			142,493,831			45,819,106			38,584,123
$	855,158,851		$	990,247,087		$	143,790,040		$	218,101,224		$	34,169,753		$	45,819,106
$	1,621,548		$	2,193,553		$	(127,786	)	$	(336,558	)	$	84,171		$	70,727
	1,400,000			6,100,000			4,300,000			20,650,000			150,000			200,000
	(5,650,000	)		(7,650,000	)		(12,450,000	)		(17,300,000	)		(350,000	)		(200,000	)
	38,200,000			39,750,000			33,100,000			29,750,000			1,400,000			1,400,000
	33,950,000			38,200,000			24,950,000			33,100,000			1,200,000			1,400,000

55

Financial Highlights

PowerShares Aerospace & Defense Portfolio (PPA)

	Year Ended April 30,
	2015			2014			2013			2012			2011
Per Share Operating Performance:
Net asset value at beginning of year	$	32.16		$	23.22		$	19.99		$	20.57		$	19.07
Net investment income(a)		0.32			0.33			0.44			0.21			0.18
Net realized and unrealized gain (loss) on investments		3.52			9.00			3.22			(0.60	)		1.49
Total from investment operations		3.84			9.33			3.66			(0.39	)		1.67
Distributions to shareholders from:
Net investment income		(0.27	)		(0.39	)		(0.43	)		(0.19	)		(0.17	)
Net asset value at end of year	$	35.73		$	32.16		$	23.22		$	19.99		$	20.57
Market price at end of year(b)	$	35.71		$	32.15		$	23.20		$	19.98		$	20.57
Net Asset Value Total Return(c)		11.99	%		40.52	%		18.69	%		(1.82	)%		8.91	%
Market Price Total Return(c)		11.96	%		40.59	%		18.65	%		(1.87	)%		8.91	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	262,613		$	98,086		$	47,607		$	54,967		$	107,971
Ratio to average net assets of:
Expenses, after Waivers		0.66	%		0.66	%		0.66	%		0.66	%		0.66	%
Expenses, prior to Waivers		0.66	%		0.69	%		0.74	%		0.76	%		0.73	%
Net investment income, after Waivers		0.94	%		1.13	%		2.18	%		1.09	%		0.99	%
Portfolio turnover rate(d)		13	%		8	%		17	%		25	%		12	%

^(a)  Based on average shares outstanding.

^(b)  The mean between the last bid and ask prices.

^(c)  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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(d)  Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.

PowerShares Cleantech^TM Portfolio (PZD)

	Year Ended April 30,
	2015			2014			2013			2012			2011
Per Share Operating Performance:
Net asset value at beginning of year	$	31.90		$	25.47		$	23.06		$	30.10		$	25.00
Net investment income(a)		0.27			0.17			0.26			0.24			0.06
Net realized and unrealized gain (loss) on investments		(1.33	)		6.53			2.37			(7.07	)		5.05
Total from investment operations		(1.06	)		6.70			2.63			(6.83	)		5.11
Distributions to shareholders from:
Net investment income		(0.24	)		(0.27	)		(0.22	)		(0.21	)		(0.01	)
Net asset value at end of year	$	30.60		$	31.90		$	25.47		$	23.06		$	30.10
Market price at end of year(b)	$	30.54		$	31.92		$	25.36		$	22.98		$	30.08
Net Asset Value Total Return(c)		(3.36	)%		26.52	%		11.59	%		(22.65	)%		20.43	%
Market Price Total Return(c)		(3.61	)%		27.15	%		11.50	%		(22.87	)%		21.32	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	76,512		$	84,535		$	71,314		$	100,305		$	162,530
Ratio to average net assets of:
Expenses, after Waivers		0.67	%		0.67	%		0.67	%		0.67	%		0.67	%
Expenses, prior to Waivers		0.72	%		0.72	%		0.76	%		0.74	%		0.74	%
Net investment income, after Waivers		0.89	%		0.58	%		1.16	%		0.97	%		0.22	%
Portfolio turnover rate(d)		22	%		24	%		22	%		27	%		24	%

^(a)  Based on average shares outstanding.

^(b)  The mean between the last bid and ask prices.

^(c)  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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(d)  Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

56

Financial Highlights (continued)

PowerShares DWA Momentum Portfolio (PDP)

	Year Ended April 30,
	2015			2014			2013			2012			2011
Per Share Operating Performance:
Net asset value at beginning of year	$	36.96		$	31.77		$	27.86		$	26.52		$	21.25
Net investment income(a)		0.16			0.06			0.23			0.07			0.04
Net realized and unrealized gain on investments		5.43			5.23			3.92			1.31			5.29
Total from investment operations		5.59			5.29			4.15			1.38			5.33
Distributions to shareholders from:
Net investment income		(0.11	)		(0.10	)		(0.24	)		(0.04	)		(0.06	)
Net asset value at end of year	$	42.44		$	36.96		$	31.77		$	27.86		$	26.52
Market price at end of year(b)	$	42.43		$	36.93		$	31.76		$	27.86		$	26.54
Net Asset Value Total Return(c)		15.13	%		16.71	%		15.02	%		5.22	%		25.11	%
Market Price Total Return(c)		15.19	%		16.65	%		14.98	%		5.15	%		25.26	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	1,871,780		$	1,260,444		$	876,929		$	571,078		$	450,904
Ratio to average net assets of:
Expenses, after Waivers		0.63	%(d)		0.64	%(d)		0.67	%(d)		0.65	%		0.70	%
Expenses, prior to Waivers		0.63	%(d)		0.64	%(d)		0.67	%(d)		0.65	%		0.71	%
Net investment income, after Waivers		0.39	%		0.17	%		0.82	%		0.29	%		0.19	%
Portfolio turnover rate(e)		73	%		75	%		66	%		96	%		42	%

^(a)  Based on average shares outstanding.

^(b)  The mean between the last bid and ask prices.

^(c)  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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(d)  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 company expenses are not expenses that are incurred directly by the Fund. They are expenses that are incurred directly by the investment companies and are deducted from the value of the funds that the Fund invests in. The effect of the estimated investment companies expenses that the Fund bears indirectly is included in the Fund’s total return.

^(e)  Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

57

Financial Highlights (continued)

PowerShares Global Listed Private Equity Portfolio (PSP)

	Year Ended April 30,
	2015			2014			2013			2012			2011
Per Share Operating Performance:
Net asset value at beginning of year	$	11.79		$	11.70		$	9.22		$	12.17		$	10.04
Net investment income(a)		0.35			0.38	(b)		0.24			0.26			0.26
Net realized and unrealized gain (loss) on investments		0.41			1.38			2.64			(2.58	)		2.41
Total from investment operations		0.76			1.76			2.88			(2.32	)		2.67
Distributions to shareholders from:
Net investment income		(0.60	)		(1.67	)		(0.40	)		(0.56	)		(0.54	)
Return of capital		—			—			—			(0.07	)		—
Total distributions		(0.60	)		(1.67	)		(0.40	)		(0.63	)		(0.54	)
Net asset value at end of year	$	11.95		$	11.79		$	11.70		$	9.22		$	12.17
Market price at end of year(c)	$	11.93		$	11.85		$	11.75		$	9.25		$	12.25
Net Asset Value Total Return(d)		6.79	%		16.20	%		31.87	%		(19.51	)%		27.93	%
Market Price Total Return(d)		6.09	%		16.31	%		32.00	%		(19.80	)%		28.48	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	476,606		$	583,601		$	408,492		$	296,744		$	493,622
Ratio to average net assets of:
Expenses, after Waivers(e)		0.64	%		0.69	%		0.70	%		0.71	%		0.70	%
Expenses, prior to Waivers(e)		0.66	%		0.70	%		0.70	%		0.76	%		0.73	%
Net investment income, after Waivers		3.04	%		3.20	%(b)		2.47	%		2.79	%		2.50	%
Portfolio turnover rate(f)		30	%		53	%		53	%		88	%		112	%

^(a)  Based on average shares outstanding.

^(b)  Net Investment income per share and the ratio of net investment income to average net assets include a significant dividend received during the year. Net investment income per share and the ratio of net investment income to average net assets excluding the significant dividends are $0.28 and 2.39%, respectively.

^(c)  The mean between the last bid and ask prices.

^(d)  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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(e)  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 company expenses are not expenses that are incurred directly by the Fund. They are expenses that are incurred directly by the investment companies and are deducted from the value of the funds that the Fund invests in. The effect of the estimated investment companies expenses that the Fund bears indirectly is included in the Fund’s total return.

^(f)  Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

58

Financial Highlights (continued)

PowerShares Golden Dragon China Portfolio (PGJ)

	Year Ended April 30,
	2015			2014			2013			2012			2011
Per Share Operating Performance:
Net asset value at beginning of year	$	27.65		$	19.65		$	21.56		$	28.98		$	25.03
Net investment income(a)		0.21			0.21			0.34			0.48			0.21
Net realized and unrealized gain (loss) on investments		6.06			8.08			(1.81	)		(7.43	)		3.92
Total from investment operations		6.27			8.29			(1.47	)		(6.95	)		4.13
Distributions to shareholders from:
Net investment income		(0.25	)		(0.29	)		(0.44	)		(0.47	)		(0.18	)
Net asset value at end of year	$	33.67		$	27.65		$	19.65		$	21.56		$	28.98
Market price at end of year(b)	$	33.62		$	27.60		$	19.59		$	21.49		$	28.87
Net Asset Value Total Return(c)		22.79	%		42.28	%		(6.73	)%(d)		(23.98	)%		16.60	%
Market Price Total Return(c)		22.83	%		42.46	%		(6.70	)%		(23.93	)%		16.11	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	230,631		$	258,569		$	181,744		$	245,838		$	446,292
Ratio to average net assets of:
Expenses, after Waivers		0.70	%		0.70	%		0.70	%		0.69	%		0.70	%
Expenses, prior to Waivers		0.70	%		0.70	%		0.75	%		0.71	%		0.72	%
Net investment income, after Waivers		0.68	%		0.75	%		1.78	%		2.08	%		0.82	%
Portfolio turnover rate(e)		25	%		37	%		63	%		23	%		15	%

^(a)  Based on average shares outstanding.

^(b)  The mean between the last bid and ask prices.

^(c)  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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(d)  Amount includes the effect of the Adviser pay-in for an economic loss of $0.004 per share. Had the pay-in not been made, the net asset value total return would have been (6.77)%.

^(e)  Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.

PowerShares S&P 500 BuyWrite Portfolio (PBP)

	Year Ended April 30,
	2015			2014			2013			2012			2011
Per Share Operating Performance:
Net asset value at beginning of year	$	21.32		$	20.83		$	20.60		$	21.52		$	21.52
Net investment income(a)		0.28			0.28			0.33			0.29			0.29
Net realized and unrealized gain on investments		0.65			1.57			0.70			1.00			1.34
Total from investment operations		0.93			1.85			1.03			1.29			1.63
Distributions to shareholders from:
Net investment income		(0.86	)		(1.35	)		(0.65	)		(2.10	)		(0.27	)
Net realized gains		(0.17	)		(0.01	)		(0.15	)		(0.11	)		(1.36	)
Total distributions		(1.03	)		(1.36	)		(0.80	)		(2.21	)		(1.63	)
Net asset value at end of year	$	21.22		$	21.32		$	20.83		$	20.60		$	21.52
Market price at end of year(b)	$	21.22		$	21.35		$	20.83		$	20.65		$	21.52
Net Asset Value Total Return(c)		4.48	%		9.34	%		5.22	%		6.74	%		8.11	%
Market Price Total Return(c)		4.32	%		9.50	%		4.97	%		7.02	%		8.09	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	404,270		$	249,458		$	205,222		$	154,528		$	120,511
Ratio to average net assets of:
Expenses		0.75	%		0.75	%		0.75	%		0.75	%		0.75	%
Net investment income		1.33	%		1.37	%		1.61	%		1.42	%		1.37	%
Portfolio turnover rate(d)		50	%		32	%		22	%		58	%		61	%

^(a)  Based on average shares outstanding.

^(b)  The mean between the last bid and ask prices.

^(c)  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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(d)  Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

59

Financial Highlights (continued)

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

	Year Ended April 30,
	2015			2014			2013			2012			2011
Per Share Operating Performance:
Net asset value at beginning of year	$	20.90		$	17.87		$	15.33		$	14.64		$	12.21
Net investment income(a)		0.41			0.36			0.33			0.26			0.20
Net realized and unrealized gain on investments		2.33			3.03			2.52			0.74			2.31
Total from investment operations		2.74			3.39			2.85			1.00			2.51
Distributions to shareholders from:
Net investment income		(0.39	)		(0.36	)		(0.31	)		(0.31	)		(0.08	)
Net asset value at end of year	$	23.25		$	20.90		$	17.87		$	15.33		$	14.64
Market price at end of year(b)	$	23.24		$	20.89		$	17.87		$	15.33		$	14.64
Net Asset Value Total Return(c)		13.17	%		19.15	%		18.86	%		7.04	%		20.61	%
Market Price Total Return(c)		13.18	%		19.09	%		18.86	%		7.04	%		20.61	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	533,537		$	365,686		$	228,736		$	146,421		$	112,695
Ratio to average net assets of:
Expenses, after Waivers		0.29	%		0.29	%		0.39	%		0.50	%		0.52	%
Expenses, prior to Waivers		0.38	%		0.39	%		0.55	%		0.70	%		0.84	%
Net investment income (loss), after Waivers		1.83	%		1.87	%		2.06	%		1.82	%		1.49	%
Portfolio turnover rate(d)		18	%		13	%		17	%		14	%		64	%

^(a)  Based on average shares outstanding.

^(b)  The mean between the last bid and ask prices.

^(c)  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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(d)  Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.

PowerShares Water Resources Portfolio (PHO)

	Year Ended April 30,
	2015			2014			2013			2012			2011
Per Share Operating Performance:
Net asset value at beginning of year	$	25.92		$	22.06		$	18.78		$	20.25		$	18.05
Net investment income(a)		0.14			0.16			0.16			0.14			0.11
Net realized and unrealized gain (loss) on investments		(0.72	)		3.83			3.28			(1.48	)		2.19
Total from investment operations		(0.58	)		3.99			3.44			(1.34	)		2.30
Distributions to shareholders from:
Net investment income		(0.15	)		(0.13	)		(0.16	)		(0.13	)		(0.10	)
Net asset value at end of year	$	25.19		$	25.92		$	22.06		$	18.78		$	20.25
Market price at end of year(b)	$	25.17		$	25.91		$	22.05		$	18.77		$	20.24
Net Asset Value Total Return(c)		(2.25	)%		18.16	%		18.48	%		(6.59	)%		12.81	%
Market Price Total Return(c)		(2.29	)%		18.17	%		18.49	%		(6.59	)%		12.75	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	855,159		$	990,247		$	877,064		$	825,510		$	1,260,648
Ratio to average net assets of:
Expenses, after Waivers		0.61	%		0.61	%		0.62	%		0.62	%		0.66	%
Expenses, prior to Waivers		0.61	%		0.61	%		0.62	%		0.62	%		0.66	%
Net investment income, after Waivers		0.56	%		0.66	%		0.81	%		0.77	%		0.63	%
Portfolio turnover rate(d)		25	%		34	%		31	%		44	%		13	%

^(a)  Based on average shares outstanding.

^(b)  The mean between the last bid and ask prices.

^(c)  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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(d)  Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

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Financial Highlights (continued)

PowerShares WilderHill Clean Energy Portfolio (PBW)

	Year Ended April 30,
	2015			2014			2013			2012			2011
Per Share Operating Performance:
Net asset value at beginning of year	$	6.59		$	4.79		$	5.08		$	10.35		$	10.12
Net investment income (loss)(a)		0.14			0.10			0.11			0.20			(0.03	)
Net realized and unrealized gain (loss) on investments		(0.82	)		1.85			(0.26	)		(5.33	)		0.26
Total from investment operations		(0.68	)		1.95			(0.15	)		(5.13	)		0.23
Distributions to shareholders from:
Net investment income		(0.15	)		(0.15	)		(0.14	)		(0.14	)		—
Net asset value at end of year	$	5.76		$	6.59		$	4.79		$	5.08		$	10.35
Market price at end of year(b)	$	5.76		$	6.59		$	4.79		$	5.08		$	10.33
Net Asset Value Total Return(c)		(10.36	)%		41.23	%		(2.64	)%		(49.78	)%		2.27	%
Market Price Total Return(c)		(10.36	)%		41.23	%		(2.65	)%		(49.68	)%		2.18	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	143,790		$	218,101		$	142,494		$	178,016		$	541,472
Ratio to average net assets of:
Expenses, after Waivers		0.70	%		0.70	%		0.70	%		0.70	%		0.70	%
Expenses, prior to Waivers		0.72	%		0.70	%		0.70	%		0.76	%		0.75	%
Net investment income (loss), after Waivers		2.39	%		1.55	%		2.48	%		2.98	%		(0.27	)%
Portfolio turnover rate(d)		48	%		57	%		52	%		46	%		32	%

^(a)  Based on average shares outstanding.

^(b)  The mean between the last bid and ask prices.

^(c)  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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(d)  Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.

PowerShares WilderHill Progressive Energy Portfolio (PUW)

	Year Ended April 30,
	2015			2014			2013			2012			2011
Per Share Operating Performance:
Net asset value at beginning of year	$	32.73		$	27.56		$	25.87		$	30.68		$	25.19
Net investment income(a)		0.50			0.24			0.35			0.14			0.10
Net realized and unrealized gain (loss) on investments		(4.27	)		5.27			1.54			(4.71	)		5.53
Total from investment operations		(3.77	)		5.51			1.89			(4.57	)		5.63
Distributions to shareholders from:
Net investment income		(0.49	)		(0.34	)		(0.20	)		(0.24	)		(0.14	)
Net asset value at end of year	$	28.47		$	32.73		$	27.56		$	25.87		$	30.68
Market price at end of year(b)	$	28.47		$	32.71		$	27.55		$	25.86		$	30.70
Net Asset Value Total Return(c)		(11.59	)%		20.24	%		7.38	%		(14.84	)%		22.47	%
Market Price Total Return(c)		(11.54	)%		20.21	%		7.38	%		(14.93	)%		22.55	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	34,170		$	45,819		$	38,584		$	47,859		$	75,175
Ratio to average net assets of:
Expenses, after Waivers		0.70	%		0.70	%		0.70	%		0.71	%		0.70	%
Expenses, prior to Waivers		0.86	%		0.84	%		0.87	%		0.86	%		0.86	%
Net investment income, after Waivers		1.69	%		0.78	%		1.40	%		0.56	%		0.37	%
Portfolio turnover rate(d)		41	%		37	%		32	%		36	%		22	%

^(a)  Based on average shares outstanding.

^(b)  The mean between the last bid and ask prices.

^(c)  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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(d)  Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

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Notes to Financial Statements

PowerShares Exchange-Traded Fund Trust

April 30, 2015

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, 2015, the Trust offered fifty-three portfolios. This report includes the following portfolios:

Full Name	Short Name
PowerShares Aerospace & Defense Portfolio (PPA)	“Aerospace & Defense Portfolio”
PowerShares CleantechTM Portfolio (PZD)	“CleantechTM Portfolio”
PowerShares DWA Momentum Portfolio (PDP)	“DWA Momentum Portfolio”
PowerShares Global Listed Private Equity Portfolio (PSP)	“Global Listed Private Equity Portfolio”
PowerShares Golden Dragon China Portfolio (PGJ)	“Golden Dragon China Portfolio”
PowerShares S&P 500 BuyWrite Portfolio (PBP)	“S&P 500 BuyWrite Portfolio”
PowerShares S&P 500® High Quality Portfolio (SPHQ)	“S&P 500® High Quality Portfolio”
PowerShares Water Resources Portfolio (PHO)	“Water Resources Portfolio”
PowerShares WilderHill Clean Energy Portfolio (PBW)	“WilderHill Clean Energy Portfolio”
PowerShares WilderHill Progressive Energy Portfolio (PUW)	“WilderHill Progressive Energy Portfolio”

Each portfolio (each, a “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 NYSE Arca, Inc.

The market price of each Share may differ to some degree from the Fund’s net asset value (“NAV”). 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 principally in exchange for the deposit or delivery of a basket of securities (“Deposit Securities”). 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 generally correspond (before fees and expenses) to the price and yield of its respective index listed below (each, an “Underlying Index”):

Fund	Underlying Index
Aerospace & Defense Portfolio	SPADETM Defense Index
CleantechTM Portfolio	The Cleantech IndexTM
DWA Momentum Portfolio	Dorsey Wright Technical LeadersTM Index
Global Listed Private Equity Portfolio	Red Rocks Global Listed Private Equity Index
Golden Dragon China Portfolio	NASDAQ Golden Dragon China Index
S&P 500 BuyWrite Portfolio	CBOE S&P 500 BuyWrite IndexTM
S&P 500® High Quality Portfolio	S&P 500® High Quality Rankings Index
Water Resources Portfolio	NASDAQ OMX US Water IndexSM
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 accounting principles generally accepted in the United States of America (“GAAP”) 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. The following is a summary of the significant accounting policies followed by the Funds in preparation of their financial statements.

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A. Security Valuation

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

A security listed or traded on an exchange (except convertible securities) 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. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked 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 asked prices. For purposes of determining NAV per Share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).

Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end of day NAV per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the 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.

Debt obligations (including convertible securities) 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 (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Securities with a demand feature exercisable within one to seven days are valued at par. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

Foreign securities’ (including foreign exchange contracts’) prices 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 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 Invesco PowerShares Capital Management LLC (the “Adviser”) determines 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’ prices 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 (“ADRs”) 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.

Swap agreements are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service are valued based on a model which may include end of day net present values, spreads, ratings, industry, and company performance.

Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.

Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith following procedures approved by the Board of Trustees. Issuer-specific events, market trends, bid/asked 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.

Each Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.

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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

Index Risk. Unlike many investment companies, the Funds do not utilize investing strategies that seek returns in excess of their Underlying Indexes. Therefore, a Fund would not necessarily buy or sell a security unless that security is added or removed, respectively, from its respective Underlying Index, even if that security generally is underperforming.

Equity Risk. Equity risk is the risk that the value of the securities that each Fund holds will fall due to general market and economic conditions, perceptions regarding the industries in which the issuers of securities that a Fund holds participate or factors relating to specific companies in which the Fund invests. For example, an adverse event, such as an unfavorable earnings report, may depress the value of securities a Fund holds; the price of securities may be particularly sensitive to general movements in the stock market; or a drop in the stock market may depress the price of most or all of the securities a Fund holds. In addition, securities of an issuer in the Fund’s portfolio may decline in price if the issuer fails to make anticipated dividend payments because, among other reasons, the issuer of the security experiences a decline in its financial condition.

Industry Concentration Risk. In following its methodology, each Fund’s Underlying Index from time to time may be concentrated to a significant degree in securities of issuers located in a single industry or a sector. To the extent that an Underlying Index concentrates in the securities of issuers in a particular industry or sector, each Fund will also concentrate its investments to approximately the same extent. By concentrating its investments in an industry or sector, a Fund may face more risks than if it were diversified broadly over numerous industries or sectors. In addition, at times, an industry or sector may be out of favor and underperform other industries or the market as a whole. Any factors detrimental to the performance of such industry or sector will disproportionately impact a Fund’s NAV.

Non-Diversified Fund Risk. Each Fund (except for Cleantech^TM Portfolio, DWA Momentum Portfolio, Global Listed Private Equity Portfolio, S&P 500 BuyWrite Portfolio, S&P 500^® High Quality Portfolio, WilderHill Clean Energy Portfolio and WilderHill Progressive Energy Portfolio) is non-diversified and can invest a greater portion of its assets in securities of individual issuers than diversified funds. 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. This may increase a Fund’s volatility and cause the performance of a relatively small number of issuers to have a greater impact on a Fund’s performance.

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 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.

Small and Medium Capitalization Company Risk. Investing in securities of small and medium capitalization companies involves greater risk than customarily is 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 focus are still evolving and, as a result, they may be more sensitive to changing market conditions.

Foreign Investment Risk. For Cleantech^TM Portfolio, investments in the securities of non-U.S. issuers involve risks beyond those associated with investments in U.S. securities. Foreign securities may have relatively low market liquidity, greater market volatility, decreased publicly available information and less reliable financial information about issuers. Foreign securities also are subject to the risks of expropriation, nationalization, political instability, local taxation, potential currency transfer restrictions or other adverse political or economic developments and the difficulty of enforcing obligations in other countries. As the Fund may invest in securities denominated in foreign currencies, fluctuations in the value of the U.S. dollar relative to the values of other currencies may adversely affect investments in foreign securities and may negatively impact the Fund’s returns.

Foreign Securities Risk. For Cleantech™ Portfolio, Global Listed Private Equity Portfolio and Water Resources Portfolio, since their Underlying Indexes may include ADRs and global depositary receipts (“GDRs”), investing in these Funds involve risks of investing in foreign securities, in addition to the risks associated with domestic securities. In general, foreign companies are not subject to the regulatory requirements of U.S. companies and, as such, there may be less publicly available information about these companies. Moreover, foreign companies often are subject to less stringent requirements regarding accounting, auditing, financial reporting and record-keeping than are U.S. companies. Therefore, not all material information regarding these companies will be available.

Risk of Investing in Listed Private Equity Companies. For Global Listed Private Equity Portfolio, there are certain risks inherent in investing in listed private equity companies, which encompass business development companies (“BDCs”), and other financial

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institutions or vehicles whose principal business is to invest in and lend capital to, or provide services to privately held companies. The 1940 Act imposes certain restraints upon the operations of BDCs. For example, BDCs are required to invest at least 70% of their total assets primarily in securities of private companies or thinly traded U.S. public companies, cash, cash equivalents, U.S. government securities and high quality debt investments that mature in one year or less. 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 incur indebtedness only 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.

C. Federal Income Taxes

Each Fund intends to comply with the provisions of the Internal Revenue Code of 1986, as amended (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.

Each Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed each Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.

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 U.S. federal tax returns and tax returns in 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 Transactions and Investment Income

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

Corporate actions (including cash dividends) are recorded net of non-reclaimable foreign tax withholdings on the ex-date.

E. Expenses

Expenses of the Trust that are directly identifiable to a specific Fund are applied to that Fund. Expenses of the Trust 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 S&P 500 BuyWrite 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 Index, any distribution fees or expenses, litigation expenses, fees payable to the Trust’s Board members who are not “interested persons” (as defined in the 1940 Act) of the Trust (the “Independent Trustees”) or the Adviser, expenses incurred in connection with the Board members’ services, including travel expenses and legal fees of counsel for the Independent Trustees, acquired fund fees and expenses, if any, and extraordinary expenses.

S&P 500 BuyWrite Portfolio has agreed to pay an annual unitary management fee to the Adviser. Out of the unitary management fee, the Adviser has agreed to pay for substantially all expenses of the Fund, including the cost of transfer agency, custody, fund administration, legal, audit and other services, except for advisory fees, distribution fees, if any, brokerage expenses, taxes, interest, litigation expenses and other extraordinary expenses (including acquired fund fees and expenses, if any).

To the extent a Fund invests in other investment companies, the expenses shown 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 such investment companies’ expenses are included in the realized and unrealized gain or loss on the investments in the investment companies.

F. Dividends and Distributions to Shareholders

Each Fund declares and pays dividends from net investment income, if any, to its shareholders quarterly and records such dividends on ex-dividend date. Generally, each Fund distributes net realized taxable capital gains, if any, annually in cash and records them on

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ex-dividend date. Such distributions on a tax basis are determined in conformity with federal 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 year-end.

G. Option Contracts Written

S&P 500 BuyWrite Portfolio engaged 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 the Fund writes (sells) call options, the amount of the premium received is recorded as a liability in the Statements 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 Statements 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 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.

H. Swap Agreements

Global Listed Private Equity Portfolio entered into various swap transactions, including interest rate, total return, index, currency exchange rate and credit default swap contracts (“CDS”) for investment purposes or to manage interest rate, currency or credit risk. Such transactions are agreements between two parties (“Counterparties”). These agreements may contain, among other conditions, events of default and termination events, and various covenants and representations such as provisions that require the Fund to maintain a pre-determined level of net assets, and/or provide limits regarding the decline of the Fund’s NAV over specific periods of time. If the Fund were to trigger such provisions and have open derivative positions at that time, the Counterparty may be able to terminate such agreement and request immediate payment in an amount equal to the net liability positions, if any.

Interest rate, total return, index and currency exchange rate swap agreements are two-party contracts entered into primarily to exchange the returns (or differentials in rates of returns) earned or realized on particular predetermined investments or instruments. The gross returns to be exchanged or “swapped” between the parties are calculated with respect to a notional amount, i.e., the return on or increase in value of a particular dollar amount invested at a particular interest rate or return of an underlying asset, in a particular foreign currency, or in a “basket” of securities representing a particular index.

Changes in the value of swap agreements are recognized as unrealized gains (losses) in the Statements of Operations by “marking to market” on a daily basis to reflect the value of the swap agreement at the end of each trading day. Payments received or paid at the beginning of the agreement are reflected as such on the Statements of Assets and Liabilities and may be referred to as upfront payments. The Fund accrues for the fixed payment stream and amortizes upfront payments, if any, on swap agreements on a daily basis with the net amount, recorded as a component of realized gain (loss) on the Statements of Operations. A liquidation payment received or made at the termination of a swap agreement is recorded as realized gain (loss) on the Statements of Operations. The Fund segregates liquid securities having a value at least equal to the amount of the potential obligation of the Fund under any swap transaction. Entering into these agreements involves, to varying degrees, lack of liquidity and elements of credit, market, and counterparty risk in excess of amounts recognized on the Statements of Assets and Liabilities. Such risks involve the possibility that a swap is difficult to sell or liquidate, the Counterparty does not honor its obligations under the agreement and unfavorable interest rates and market fluctuations. It is possible that developments in the swaps market, including potential government regulation, could adversely affect the Fund’s ability to terminate existing swap agreements or to realize amounts to be received under such agreements.

I. Securities Lending

During the fiscal year ended April 30, 2015, Cleantech^TM Portfolio, Global Listed Private Equity Portfolio, Golden Dragon China Portfolio, WilderHill Clean Energy Portfolio and WilderHill Progressive Energy Portfolio participated in securities lending. Each Fund loaned portfolio securities having a market value up to one-third of each Fund’s total assets. Such loans are secured by cash collateral equal to no less than 102% (105% for international) of the market value of the loaned securities determined daily by the securities lending

66

provider. Cash collateral received in connection with these loans is invested in an affiliated money market fund and is shown as such on the Schedule of Investments. It is the policy of these Funds to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. Lending securities entails a risk of loss to a Fund if, and to the extent that, the market value of the securities loaned were to increase, and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. A Fund could experience delays and costs in gaining access to the collateral. A Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to Counterparties, are included in Securities lending income on the Statements of Operations. The aggregate value of securities out on loan, if any, is shown on the Statements of Assets and Liabilities.

Note 3. Investment Advisory Agreement and Other Agreements

The Trust has entered into an Investment Advisory Agreement with the Adviser on behalf of each Fund, pursuant to which the Adviser has overall responsibility for the selection and ongoing monitoring of the Funds’ investments, managing the Funds’ business affairs and providing certain clerical, bookkeeping and other administrative services. Pursuant to that Investment Advisory Agreement, each Fund (except for S&P 500 BuyWrite Portfolio and S&P 500^® High Quality Portfolio) has agreed to pay the Adviser an annual fee of 0.50% of the Fund’s average daily net assets. S&P 500^® High Quality Portfolio has agreed to pay the Adviser an annual fee of 0.29% of the Fund’s average daily net assets.

As compensation for its services, 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. Out of the unitary management fee, 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, and other services, except for advisory fees, distribution fees, if any, brokerage expenses, taxes, interest, litigation expenses and other extraordinary expenses (including acquired fund fees and expenses, if any).

The Trust also has entered into an Amended and Restated Excess Expense Agreement (the “Expense Agreement”) with the Adviser on behalf of each Fund (excluding S&P BuyWrite Portfolio), pursuant to which the Adviser has agreed to waive fees and/or pay Fund expenses to the extent necessary to prevent the operating expenses (excluding interest expenses, brokerage commissions and other trading expenses, sub-licensing fees, offering costs, taxes, acquired fund fees and expenses, if any, and extraordinary expenses) of each Fund (except for S&P 500^® High Quality Portfolio and S&P 500 BuyWrite Portfolio) from exceeding 0.60% of the Fund’s average daily net assets per year (the “Expense Cap”), through at least August 31, 2016. The Expense Cap (including sub-licensing fees) for S&P 500^® High Quality Portfolio is 0.29% of the Fund’s average daily net assets per year through at least August 31, 2016. Offering costs excluded from each Expense Cap for each Fund 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. Unless the Adviser continues the Expense Agreement, it will terminate on August 31, 2016. The Expense Agreement cannot be terminated during its term. The Adviser did not waive fees and/or pay Fund expenses during the period under this Expense Cap for Aerospace & Defense Portfolio, DWA Momentum Portfolio, Global Listed Private Equity Portfolio, Golden Dragon China Portfolio and Water Resources Portfolio.

Further, through August 31, 2017, the Adviser has contractually agreed to waive a portion of each Fund’s management fee in an amount equal to 100% of the net advisory fees an affiliate of the Adviser receives that are attributable to certain of the Fund’s investments in money market funds managed by that affiliate (excluding investments of cash collateral from securities lending). The Adviser cannot discontinue this waiver prior to its expiration. This agreement is not subject to recapture by the Adviser.

For the fiscal year ended April 30, 2015, the Adviser waived fees and/or paid Fund expenses for each Fund in the following amounts:

Aerospace & Defense Portfolio	$	182
CleantechTM Portfolio		35,470
DWA Momentum Portfolio		1,636
Global Listed Private Equity Portfolio		97,879
Golden Dragon China Portfolio		378
S&P 500 BuyWrite Portfolio		444
S&P 500® High Quality Portfolio		392,591
Water Resources Portfolio		1,295
WilderHill Clean Energy Portfolio		34,645
WilderHill Progressive Energy Portfolio		60,614

67

The Expense Agreement provides that the fees waived or expenses borne by the Adviser are subject to recapture by the Adviser for up to three years from the date the fee was waived 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 Expense Agreement does not apply to S&P 500 BuyWrite Portfolio.

For the following Funds, the amounts available for potential future recapture by the Adviser under the Expense Agreement and the expiration schedule at April 30, 2015 are as follows:

	Total Potential Recapture Amounts		Potential Recapture Amounts Expiring
			04/30/16		04/30/17		04/30/18
Aerospace & Defense Portfolio	$	59,650	$	36,735	$	22,915	$	—
CleantechTM Portfolio		131,456		61,862		34,174		35,420
Golden Dragon China Portfolio		91,655		91,655		—		—
S&P 500® High Quality Portfolio		950,284		271,138		286,999		392,147
WilderHill Clean Energy Portfolio		34,402		—		—		34,402
WilderHill Progressive Energy Portfolio		180,591		64,090		55,938		60,563

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 Funds are not charged any fees pursuant to the Distribution Agreement. The Distributor is an affiliate of the Adviser.

The Adviser has entered into a licensing agreement for each Fund with the following entities (each, a “Licensor”):

Fund	Licensor
Aerospace & Defense Portfolio	International Space Business Council
CleantechTM Portfolio	Cleantech Indices LLC
DWA Momentum Portfolio	Dorsey Wright & Associates, Inc.
Global Listed Private Equity Portfolio	Red Rocks Capital Partners, LLC
Golden Dragon China Portfolio	The NASDAQ OMX Group, Inc.
S&P 500 BuyWrite Portfolio	Standard & Poor’s, a division of The McGraw-Hill Companies, Inc.
S&P 500® High Quality Portfolio	Standard & Poor’s Financial Services LLC
Water Resources Portfolio	The NASDAQ OMX Group, Inc.
WilderHill Clean Energy Portfolio	WilderShares, LLC
WilderHill Progressive Energy Portfolio	WilderShares, LLC

Each Underlying Index name trademark is owned by its respective Licensor. These trademarks have been licensed to the Adviser for use by the Funds. Each Fund is entitled to use its Underlying Index pursuant to the Trust’s sub-licensing agreement with the Adviser. The Funds (other than S&P 500 BuyWrite Portfolio) are required to pay the sub-licensing fees that are shown on the Statements of Operations. 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 the Funds.

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

Note 4. Investments in Affiliates

The Adviser is a wholly-owned subsidiary of Invesco Ltd., and therefore Invesco Ltd. is considered to be affiliated with the Funds. The table below shows S&P 500 BuyWrite Portfolio’s transactions in, and earnings from, its investment in affiliates for the fiscal year ended April 30, 2015.

S&P 500 BuyWrite Portfolio

	Value April 30, 2014		Purchases at Cost		Proceeds from Sales			Change in Unrealized Appreciation		Realized Gain		Value April 30, 2015		Dividend Income
Invesco Ltd.	$	227,034	$	255,563	$	(138,814	)	$	19,123	$	30,211	$	393,117	$	8,367

68

The 1940 Act defines “affiliated person” to include issuers of which a fund holds 5% or more of the outstanding voting securities. The table below shows Water Resources Portfolio’s transactions in, and earnings from, its investment in affiliates for the fiscal year ended April 30, 2015.

Water Resources Portfolio

	Value April 30, 2014		Purchases at Cost		Proceeds from Sales			Change in Unrealized Appreciation (Depreciation)			Realized Gain (Loss)			Value April 30, 2015		Dividend Income
Layne Christensen Co.	$	13,662,750	$	13,559,525	$	(6,283,896	)	$	(5,498,889	)	$	(6,432,573	)	$	9,006,917	$	—

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 a 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.

Except for the Funds listed below, as of April 30, 2015, all of the securities in each Fund were valued based on Level 1 inputs (see the Schedules of Investments for security categories). The appreciation (depreciation) 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.

	Investments in Securities
	Level 1		Level 2			Level 3		Total
Global Listed Private Equity Portfolio
Equity Securities	$	518,127,893	$	—		$	—	$	518,127,893
Swap Agreements*		—		(541,193	)		—		(541,193	)
Total Investments	$	518,127,893	$	(541,193	)	$	—	$	517,586,700
Golden Dragon China Portfolio
Equity Securities	$	253,052,380	$	—		$	0	$	253,052,380

* Unrealized appreciation (depreciation).

Note 6. Derivative Investments

Global Listed Private Equity Portfolio and S&P 500 BuyWrite Portfolio have implemented required disclosures about derivative investments and hedging activities in accordance with GAAP. This disclosure is intended to improve financial reporting about derivative investments and hedging activities by enabling 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.

69

Value of Derivative Investments at Year-End

The table below summarizes the value of each Fund’s derivative investments, detailed by primary risk exposure, held as of April 30, 2015:

	Value
	Global Listed Private Equity Portfolio					S&P 500 BuyWrite Portfolio
Risk Exposure/Derivative Type	Assets		Liabilities			Assets		Liabilities
Equity risk:
Swap agreements(a)	$	—	$	(541,193	)	$	—	$	—
Options written contracts(a)		—		—			—		(4,121,590	)
	$	—	$	(541,193	)	$	—	$	(4,121,590	)

^(a)  Values are disclosed on the Statement of Assets and Liabilities under Unrealized depreciation on swap agreements and Open options written, at value, respectively.

Effect of Derivative Investments for the Fiscal Year Ended April 30, 2015

The table below summarizes each Fund’s gains (losses) on derivative investments, detailed by primary risk exposure, recognized in earnings during the period:

	Location of Gain (Loss) on Statements of Operations
	Global Listed Private Equity Portfolio		S&P 500 BuyWrite Portfolio
	Swap Agreements		Options written contracts
Realized Gain (Loss):
Equity risk	$	9,632,387	$	(27,993,800	)
Change in Net Unrealized Appreciation:
Equity risk		2,733,881		1,667,879
Total	$	12,366,268	$	(26,325,921	)

The table below summarizes the average notional value of swap agreements and options outstanding during the year.

	Average Notional Value
	Global Listed Private Equity Portfolio		S&P 500 BuyWrite Portfolio
Swap agreements	$	53,425,073	$	—
Options written contracts		—		364,763,125

Global Listed Private Equity Portfolio

Open Total Return Swap Agreements
Counterparty	Swap Agreements	Termination Date		Notional Amount		Value Unrealized Appreciation (Depreciation)
Citibank, N.A.	Receive a return equal to common shares of The Blackstone Group LP and pay the product of (i) 1-Month LIBOR plus 75 basis points multiplied by (ii) days in the period divided by 360		10/23/15	$	22,218,062	$	(20,282	)
Citibank, N.A.	Receive a return equal to the common shares of KKR & Co. LP and pay the product of (i) 1-Month LIBOR plus 75 basis points multiplied by (ii) days in the period divided by 360		10/23/15		21,351,963		(520,792	)
Morgan Stanley Capital Services LLC	Receive a return equal to common shares of Riverstone Energy Ltd. and pay the product of (i) 1-Month LIBOR plus 85 basis points multiplied by (ii) days in the period divided by 365		08/03/16		3,205,855		(119	)
Total Open Total Return Swap Agreements—Equity Risk						$	(541,193	)

Investment Abbreviations:

LIBOR—London Interbank Offered Rate

70

S&P 500 BuyWrite Portfolio

Open Options Written—Equity Risk
	Contract Month		Strike Price		Number of Contracts		Premiums Received		Unrealized Appreciation		Notional Value*		Value
Call Option S&P 500 Index		May-15	$	2,085		1,958	$	4,972,106	$	850,516	$	408,243,000	$	4,121,590

* Notional Value is calculated by multiplying the Number of Contracts by the Strike Price by the multiplier.

Options Written Transactions During the Year
	Call Option Contracts
	Number of Contracts			Premiums Received
Beginning of year		1,343		$	2,842,312
Written		11,129			23,787,149
Closed		(1,358	)		(2,977,332	)
Expired		(9,156	)		(18,680,023	)
End of year		1,958		$	4,972,106

Offsetting Assets and Liabilities

Accounting Standards Update (“ASU”) No. 2011-11, Disclosures about Offsetting Assets and Liabilities, which was subsequently clarified in Financial Accounting Standards Board ASU 2013-01 “Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities,” is intended to enhance disclosures about financial instruments and derivative investments that are subject to offsetting arrangements on the Statements of Assets and Liabilities and to enable investors to better understand the effect of those arrangements on each Fund’s financial position. In order for an arrangement to be eligible for netting, the Funds must have a basis to conclude that such netting arrangements are legally enforceable. The Funds enter into netting agreements and collateral agreements in an attempt to reduce the Funds’ counterparty credit risk by providing for a single net settlement with a counterparty of all financial transactions covered by the agreement in an event of default as defined under such agreement.

There were no derivative investments subject to a netting agreement for which the Funds are not currently netting. The following table presents derivative investments that are either subject to an enforceable netting agreement or offset by collateral arrangements as of April 30, 2015.

Global Listed Private Equity Portfolio

Liabilities:							Collateral Pledged
Counterparty	Gross amounts presented in Statement of Assets & Liabilities		Gross amounts offset in Statement of Assets & Liabilities		Net amounts of liabilities presented in the Statement of Assets and Liabilities		Financial Instruments		Cash		Net Amount
Citibank, N.A.	$	541,074	$	—	$	541,074	$	—	$	—	$	541,074
Morgan Stanley, Capital Securities LLC		119		—		119		—		—		119
Total	$	541,193	$	—	$	541,193	$	—	$	—	$	541,193

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, 2015 and 2014:

	2015				2014
	Ordinary Income		Long-Term Capital Gains		Ordinary Income		Long-Term Capital Gains
Aerospace & Defense Portfolio	$	1,474,100	$	—	$	993,578	$	—
CleantechTM Portfolio		635,362		—		713,573		—
DWA Momentum Portfolio		4,082,216		—		3,053,165		—
Global Listed Private Equity Portfolio		27,591,991		—		65,805,444		—
Golden Dragon China Portfolio		2,129,714		—		2,898,245		—
S&P 500 BuyWrite Portfolio		16,581,570		—		12,553,393		66,033

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	2015				2014
	Ordinary Income		Long-Term Capital Gains		Ordinary Income		Long-Term Capital Gains
S&P 500® High Quality Portfolio	$	7,699,802	$	—	$	5,320,142	$	—
Water Resources Portfolio		5,760,750		—		5,035,124		—
WilderHill Clean Energy Portfolio		4,135,076		—		5,058,769		—
WilderHill Progressive Energy Portfolio		626,095		—		473,310		—

Tax Components of Net Assets at Fiscal Year-End:

	Undistributed Ordinary Income		Temporary Book/Tax Differences			Net Unrealized Appreciation (Depreciation)— Investment Securities			Net Unrealized Appreciation (Depreciation)— Other Investments			Capital Loss Carryforwards			Post-October Capital Losses Deferrals*			Shares of Beneficial Interest		Total Net Assets
Aerospace & Defense Portfolio	$	269,899	$	(18,555	)	$	27,893,497		$	—		$	(28,696,868	)	$	—		$	263,164,723	$	262,612,696
CleantechTM Portfolio		229,476		(17,046	)		15,550,925			(4,419	)		(83,389,757	)		—			144,142,791		76,511,970
DWA Momentum Portfolio		1,770,380		(40,625	)		263,051,891			—			(203,460,829	)		(43,782,136	)		1,854,241,573		1,871,780,254
Global Listed Private Equity Portfolio		14,008,296		(26,202	)		(2,297,347	)		(35,259	)		(80,747,445	)		(5,256,931	)		550,961,315		476,606,427
Golden Dragon China Portfolio		257,642		(30,573	)		24,303,487			—			(285,098,508	)		(7,485,682	)		498,684,269		230,630,635
S&P 500 BuyWrite Portfolio		9,402,345		—			—			—			—			—			394,867,673		404,270,018
S&P 500® High Quality Portfolio		1,182,744		(20,802	)		68,344,529			—			(110,592,100	)		(662,687	)		575,284,874		533,536,558
Water Resources Portfolio		1,703,116		(81,568	)		154,327,727			—			(530,700,926	)		(19,814,155	)		1,249,724,657		855,158,851
WilderHill Clean Energy Portfolio		541,229		(43,031	)		(10,650,996	)		—			(1,371,873,358	)		(14,404,579	)		1,540,220,775		143,790,040
WilderHill Progressive Energy Portfolio		97,979		(13,808	)		2,337,688			—			(32,157,961	)		(2,986,052	)		66,891,907		34,169,753

* The Funds will elect to defer net capital losses incurred after October 31 (“Post-October Capital losses”) within the taxable year that are deemed to arise on the first business day of each Fund’s next taxable year.

Capital loss carryforwards are calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforwards actually available for the Funds to utilize. Capital losses generated in years beginning after December 22, 2010 can be carried forward for an unlimited period, whereas previous losses expire in eight tax years. Capital losses with an expiration period may not be used to offset capital gains until all net capital losses without an expiration date have been utilized. Capital loss carryforwards with no expiration date will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.

The following table presents available capital loss carryforwards and expiration dates, for each Fund as of April 30, 2015:

									Post-effective/no expiration
	2016		2017		2018		2019		Short-Term		Long-Term		Total*		Expired
Aerospace & Defense Portfolio	$	2,374,303	$	7,470,897	$	6,428,813	$	9,464,875	$	—	$	2,957,980	$	28,696,868	$	104,662
CleantechTM Portfolio		1,171,839		14,341,075		25,186,026		12,098,616		1,234,766		29,357,435		83,389,757		—
DWA Momentum Portfolio		5,046,566		92,771,702		60,219,842		10,496,532		34,926,187		—		203,460,829		—
Global Listed Private Equity Portfolio		796,018		7,687,052		47,149,399		—		16,524,684		8,590,292		80,747,445		—
Golden Dragon China Portfolio		1,235,904		22,836,421		74,072,167		35,483,714		15,547,206		135,923,096		285,098,508		3,128,677
S&P 500 BuyWrite Portfolio		—		—		—		—		—		—		—		—
S&P 500® High Quality Portfolio		21,013,690		37,241,965		42,466,537		9,869,908		—		—		110,592,100		27,128,611

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									Post-effective/no expiration
	2016		2017		2018		2019		Short-Term		Long-Term		Total*		Expired
Water Resources Portfolio	$	3,553,481	$	93,208,162	$	265,948,030	$	33,978,301	$	22,405,830	$	111,607,122	$	530,700,926	$	11,876,489
WilderHill Clean Energy Portfolio		44,707,703		261,712,498		460,657,845		241,008,862		61,502,550		302,283,900		1,371,873,358		89,533,576
WilderHill Progressive Energy Portfolio		179,432		8,319,827		12,433,887		2,282,887		3,352,064		5,589,864		32,157,961		—

* Capital loss carryforwards as of the date listed above are reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization.

Note 8. Investment Transactions

For the fiscal year ended April 30, 2015, the cost of securities purchased and proceeds from sales of securities (other than short-term securities, U.S. Treasury obligations, money market funds and in-kind transactions, if any) were as follows:

	Purchases		Sales
Aerospace & Defense Portfolio	$	25,199,987	$	24,060,223
CleantechTM Portfolio		17,361,982		17,382,755
DWA Momentum Portfolio		1,097,852,608		1,099,002,384
Global Listed Private Equity Portfolio		149,287,673		161,247,999
Golden Dragon China Portfolio		62,638,790		62,227,665
S&P 500 BuyWrite Portfolio		177,242,904		216,776,809
S&P 500® High Quality Portfolio		80,964,834		80,246,638
Water Resources Portfolio		235,022,482		234,854,785
WilderHill Clean Energy Portfolio		80,370,901		79,998,792
WilderHill Progressive Energy Portfolio		15,728,088		15,666,267

For the fiscal year ended April 30, 2015, in-kind transactions associated with creations and redemptions were as follows:

	Cost of Securities Received		Value of Securities Delivered
Aerospace & Defense Portfolio	$	163,344,225	$	17,603,595
CleantechTM Portfolio		4,389,849		8,808,462
DWA Momentum Portfolio		1,257,162,017		830,993,457
Global Listed Private Equity Portfolio		117,342,178		203,707,736
Golden Dragon China Portfolio		79,977,334		146,387,188
S&P 500 BuyWrite Portfolio		234,189,720		73,987,464
S&P 500® High Quality Portfolio		242,120,584		118,432,845
Water Resources Portfolio		35,644,453		143,302,484
WilderHill Clean Energy Portfolio		28,234,167		77,921,450
WilderHill Progressive Energy Portfolio		5,021,674		11,197,431

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

At April 30, 2015, the aggregate cost and the net unrealized appreciation (depreciation) of investments for tax purposes were as follows:

	Gross Unrealized Appreciation		Gross Unrealized (Depreciation)			Net Unrealized Appreciation (Depreciation)			Cost
Aerospace & Defense Portfolio	$	31,721,305	$	(3,827,808	)	$	27,893,497		$	234,898,861
CleantechTM Portfolio		20,227,194		(4,676,269	)		15,550,925			65,719,501
DWA Momentum Portfolio		282,756,835		(19,704,944	)		263,051,891			1,610,430,217
Global Listed Private Equity Portfolio		33,808,855		(36,106,202	)		(2,297,347	)		520,425,240

73

	Gross Unrealized Appreciation		Gross Unrealized (Depreciation)			Net Unrealized Appreciation (Depreciation)			Cost
Golden Dragon China Portfolio	$	48,127,616	$	(23,824,129	)	$	24,303,487		$	228,748,893
S&P 500 BuyWrite Portfolio		—		—			—			408,392,816
S&P 500® High Quality Portfolio		71,525,796		(3,181,267	)		68,344,529			465,063,008
Water Resources Portfolio		196,276,458		(41,948,731	)		154,327,727			700,836,696
WilderHill Clean Energy Portfolio		22,429,605		(33,080,601	)		(10,650,996	)		192,437,304
WilderHill Progressive Energy Portfolio		5,869,419		(3,531,731	)		2,337,688			34,807,760

Note 9. Reclassification of Permanent Differences

Primarily as a result of differing book/tax treatment of in-kind transactions and expired capital loss carryforwards on April 30, 2015, 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, 2015, the reclassifications were as follows:

	Undistributed Net Investment Income (Loss)			Undistributed Net Realized Gain (Loss)			Shares of Beneficial Interest
Aerospace & Defense Portfolio	$	—		$	(6,140,471	)	$	6,140,471
CleantechTM Portfolio		(4,256	)		(2,955,762	)		2,960,018
DWA Momentum Portfolio		—			(187,744,620	)		187,744,620
Global Listed Private Equity Portfolio		25,721,314			(51,059,113	)		25,337,799
Golden Dragon China Portfolio		1,502,883			(37,530,906	)		36,028,023
S&P 500 BuyWrite Portfolio		9,054,423			(9,054,423	)		—
S&P 500® High Quality Portfolio		—			(16,524,524	)		16,524,524
Water Resources Portfolio		—			(32,805,428	)		32,805,428
WilderHill Clean Energy Portfolio		438,445			74,680,874			(75,119,319	)
WilderHill Progressive Energy Portfolio		—			(3,065,594	)		3,065,594

Note 10. Trustees’ and Officer’s Fees

Trustees’ and Officer’s Fees include amounts accrued by the Funds to pay remuneration to the Independent Trustees and an Officer of the Trust. The Adviser, as a result of the unitary management fee, pays for such compensation for S&P 500 BuyWrite Portfolio. The Trustee who is an “interested person” of the Trust does 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. Obligations under the Plan represent unsecured claims against the general assets of the Funds.

Note 11. Capital

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

To the extent that the Funds permit transactions in exchange for Deposit Securities, each Fund may issue Shares in advance of receipt of Deposit Securities subject to various conditions, including a requirement to maintain on deposit with the Trust cash at least equal to 105% of the market value of the missing Deposit Securities. In accordance with the Trust’s Participant Agreement, Creation Units will be issued to an Authorized Participant, notwithstanding the fact that the corresponding Deposit Securities have not been received in part or in whole, in reliance on the undertaking of the Authorized Participant to deliver the missing Deposit Securities as soon as possible, which undertaking shall be secured by the Authorized Participant’s delivery and maintenance of collateral consisting of cash in the form of U.S. dollars in immediately available funds having a value (marked-to-market daily) at least equal to 105%, which the Adviser may change from time to time, of the value of the missing Deposit Securities.

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Transactions in each Fund’s Shares are disclosed in detail in the Statements of Changes in Net Assets.

Note 12. 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.

75

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 PowerShares Aerospace & Defense Portfolio, PowerShares Cleantech^TM Portfolio, PowerShares DWA Momentum Portfolio, PowerShares Global Listed Private Equity Portfolio, PowerShares Golden Dragon China Portfolio, PowerShares S&P 500 BuyWrite Portfolio, PowerShares S&P 500^® High Quality Portfolio, PowerShares Water Resources Portfolio, PowerShares WilderHill Clean Energy Portfolio and PowerShares WilderHill Progressive Energy Portfolio (each an individual portfolio of PowerShares Exchange-Traded Fund Trust, hereafter referred to as the “Funds”) at April 30, 2015, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, 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 Funds’ 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, 2015 by correspondence with the custodian and brokers, and the application of alternative auditing procedures where confirmations of security purchases have not been received, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

Chicago, IL

June 24, 2015

76

Fees and Expenses

As a shareholder of a Fund of the PowerShares Exchange-Traded Fund Trust, (excluding PowerShares S&P 500 BuyWrite Portfolio), you incur advisory fees and other Fund expenses. As a shareholder of a Fund of the PowerShares S&P 500 BuyWrite Portfolio, you incur a unitary management fee. In addition to the unitary management fee, a shareholder may pay distribution fees, if any, brokerage expenses, taxes, interest, litigation expenses and other extraordinary expenses (including acquired fund fees and expenses, if any). 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, 2015.

In addition to the fees and expenses which the PowerShares DWA Momentum Portfolio and PowerShares Global Listed Private Equity Portfolio (collectively, the “Portfolios”) bear directly, the Portfolios indirectly bear a pro rata share of the fees and expenses of the investment companies in which the Portfolios invest. The amount of fees and expenses incurred indirectly by the Portfolios will vary because the investment companies have varied expenses and fee levels and the Portfolios may own different proportions of the investment companies at different times. Estimated investment companies’ expenses are not expenses that are incurred directly by the Portfolios. They are expenses that are incurred directly by the investment companies and are deducted from the value of the investment companies the Portfolios invests in. The effect of the estimated investment companies’ expenses that the Portfolios bear indirectly are included in each Portfolio’s total return.

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, expenses shown in the table do not include the expenses of the underlying funds, which are borne indirectly by a Fund. If transaction costs and indirect expenses were included, your costs would have been higher.

	Beginning Account Value November 1, 2014		Ending Account Value April 30, 2015		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During the Six-Month Period(1)
PowerShares Aerospace & Defense Portfolio (PPA)
Actual	$	1,000.00	$	1,065.72		0.66	%	$	3.38
Hypothetical (5% return before expenses)		1,000.00		1,021.52		0.66			3.31
PowerShares CleantechTM Portfolio (PZD)
Actual		1,000.00		1,051.63		0.67			3.41
Hypothetical (5% return before expenses)		1,000.00		1,021.47		0.67			3.36
PowerShares DWA Momentum Portfolio (PDP)
Actual		1,000.00		1,053.70		0.63			3.21
Hypothetical (5% return before expenses)		1,000.00		1,021.67		0.63			3.16
PowerShares Global Listed Private Equity Portfolio (PSP)
Actual		1,000.00		1,118.90		0.64			3.36
Hypothetical (5% return before expenses)		1,000.00		1,021.62		0.64			3.21

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Fees and Expenses (continued)

	Beginning Account Value November 1, 2014		Ending Account Value April 30, 2015		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During the Six-Month Period(1)
PowerShares Golden Dragon China Portfolio (PGJ)
Actual	$	1,000.00	$	1,076.73		0.70	%	$	3.60
Hypothetical (5% return before expenses)		1,000.00		1,021.32		0.70			3.51
PowerShares S&P 500 BuyWrite Portfolio (PBP)
Actual		1,000.00		1,036.68		0.75			3.79
Hypothetical (5% return before expenses)		1,000.00		1,021.08		0.75			3.76
PowerShares S&P 500® High Quality Portfolio (SPHQ)
Actual		1,000.00		1,044.76		0.29			1.47
Hypothetical (5% return before expenses)		1,000.00		1,023.36		0.29			1.45
PowerShares Water Resources Portfolio (PHO)
Actual		1,000.00		974.80		0.61			2.99
Hypothetical (5% return before expenses)		1,000.00		1,021.77		0.61			3.06
PowerShares WilderHill Clean Energy Portfolio (PBW)
Actual		1,000.00		964.27		0.70			3.41
Hypothetical (5% return before expenses)		1,000.00		1,021.32		0.70			3.51
PowerShares WilderHill Progressive Energy Portfolio (PUW)
Actual		1,000.00		989.65		0.70			3.45
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, 2015. Expenses are calculated by multiplying the Fund’s annualized expense ratio by the average account value for the period, then multiplying the result by 181/365. Expense ratios for the most recent six-month period may differ from expense ratios based on the annualized data in the Financial Highlights.

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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 advisers.

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, 2015:

Federal Income Tax Information

	Qualified Dividend Income*			Corporate Dividends Received Deduction*
Aerospace & Defense Portfolio		100	%		100	%
CleantechTM Portfolio		100	%		26	%
DWA Momentum Portfolio		100	%		100	%
Global Listed Private Equity Portfolio		39	%		12	%
Golden Dragon China Portfolio		100	%		0	%
S&P 500 BuyWrite Portfolio		0	%		0	%
S&P 500® High Quality Portfolio		100	%		100	%
Water Resources Portfolio		100	%		100	%
WilderHill Clean Energy Portfolio		15	%		10	%
WilderHill Progressive Energy Portfolio		63	%		6	%

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

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Trustees and Officers

The Independent Trustees 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, 2015.

Name, Address and Year of Birth 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 During the Past 5 Years
Ronn R. Bagge—1958 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	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).	120	None
Todd J. Barre—1957 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	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.	120	None
Marc M. Kole—1960 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Trustee	Since 2006	Retired. Formerly, Chief Financial Officer, Hope Network (social services) (2008-2012); Assistant Vice President and Controller, Priority Health (health insurance) (2005-2008); Senior Vice President of Finance, United Healthcare (2004-2005); Chief Accounting Officer, Senior Vice President of Finance, Oxford Health Plans (2000-2004); Audit Partner, Arthur Andersen LLP (1996-2000).	120	None
Yung Bong Lim—1964 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Trustee	Since 2013	Managing Partner, Residential Dynamics Group LLC (2008-Present); formerly, Managing Director, Citadel Investment Group, L.L.C. (1999-2007).	120	None
Philip M. Nussbaum—1961 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Trustee	Since 2003	Chairman, Performance Trust Capital Partners (2004-Present).	120	None

* This is the date the Independent 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, 2015, the “Fund Family” consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 67 portfolios advised by the Adviser.

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Trustees and Officers (continued)

Name, Address and Year of Birth 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 During the Past 5 Years
Gary R. Wicker—1961 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Trustee	Since 2013	Senior Vice President of Global Finance and Chief Financial Officer at RBC Ministries (publishing company) (2013-Present); formerly, Executive Vice President and Chief Financial Officer, Zondervan Publishing (A division of Harper Collins/NewsCorp) (2007-2012); Senior Vice President and Group Controller (2005-2006), Senior Vice President and Chief Financial Officer (2003-2004), Chief Financial Officer (2001-2003), Vice President, Finance and Controller (1999-2001) and Assistant Controller (1997-1999), divisions of The Thomson Corporation (information services provider).	120	None
Donald H. Wilson—1959 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Chairman of the Board and Trustee	Chairman since 2012; Trustee since 2006	Chairman, President and Chief Executive Officer, Community Financial Shares, Inc. and Community Bank—Wheaton/Glen Ellyn (subsidiary) (2013-Present); Chairman and Chief Executive Officer, Stone Pillar Advisors, 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).	120	None

* This is the date the Independent 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, 2015, the “Fund Family” consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 67 portfolios advised by the Adviser.

81

Trustees and Officers (continued)

The Trustee who is an “interested person” (the “Non-Independent Trustee”) 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 the Non-Independent Trustees and the other directorships, if any, held by the Non-Independent Trustee are shown below.

Name, Address and Year of Birth of Non-Independent Trustee	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 Non-Independent Trustees	Other Directorships Held by Non-Independent Trustees During the Past 5 Years
Kevin M. Carome—1956 Invesco Ltd. Two Peachtree Pointe, 1555 Peachtree St., N.E., Suite 1800 Atlanta, GA 30309	Trustee	Since 2010	Senior Managing Director, Secretary and General Counsel, Invesco Ltd. (2006-Present); Director, Invesco Advisers, Inc. (2009-Present); Director, Invesco Finance PLC, INVESCO Funds Group, Inc., and Invesco Holding Company Limited; Director and Executive Vice President, Invesco Finance, Inc., Invesco Group Services, Inc., Invesco Investments (Bermuda) Ltd., Invesco North American Holdings, Inc., and IVZ, Inc. and Invesco Asset Management (Bermuda) Ltd.; Manager, Horizon Flight Works LLC; Director and Secretary, IVZ Bahamas Private Limited; formerly, Senior Vice President, Secretary and General Counsel, Invesco Advisers, 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.	120	None

* This is the date the Non-Independent 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, 2015, the Fund Complex consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 67 portfolios advised by the Adviser.

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Trustees and Officers (continued)

Name, Address and Year of Birth of Executive Officers	Position(s) Held with Trust	Length of Time Served*	Principal Occupation(s) During Past 5 Years
Andrew Schlossberg—1974 Invesco Management Group, Inc. 11 Greenway Plaza, Suite 1000 Houston, TX 77046	President	Since 2009	President, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2009-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); Managing Director—U.S. Strategy and Marketing (2010-Present) and Principal Executive Officer (2015-Present), Invesco PowerShares Capital Management LLC; Managing Director, U.S. head of business strategy and chief marketing officer for Invesco Ltd. in the United States (2008-Present); and Senior Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser) (2009-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) and Director, Invesco Distributors, Inc. (2012-2015).
Peter Hubbard—1981 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Vice President	Since 2009	Vice President, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2009-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); 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).
David Warren—1957 Invesco Canada Ltd. 5140 Yonge Street Suite 800, Toronto, Ontario M2N 6X7	Vice President	Since 2009	Vice President, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2009-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); Managing Director—Chief Administrative Officer, Americas, Invesco PowerShares Capital Management LLC; Senior Vice President, Invesco Advisers, Inc. (2009-Present); Director, Executive Vice President and Chief Financial Officer, Invesco Inc. (2009-Present); Senior Vice President, Invesco Management Group, Inc. (2007-Present); Director, Executive Vice President and Chief Financial Officer, Invesco Canada Ltd. (formerly, Invesco Trimark Ltd.) and Chief Administrative Officer, North American Retail, Invesco Ltd. (2007-Present); Director, Invesco Canada Holdings Inc. (2002-Present), Invesco Corporate Class Inc., and Invesco Canada Fund Inc.; Director, Invesco Financial Services Ltd. and Trimark Investments Ltd. (2014-Present); formerly, Director, Executive Vice President and Chief Financial Officer, Invesco Canada Ltd. (formerly, Invesco Trimark Ltd.) (2000-2006).

* This is the date the Officers began serving the Trust. Each Officer serves an indefinite term, until his or her successor is elected.

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Trustees and Officers (continued)

Name, Address and Year of Birth of Executive Officers	Position(s) Held with Trust	Length of Time Served*	Principal Occupation(s) During Past 5 Years
Sheri Morris—1964 Invesco Management Group, Inc. 11 Greenway Plaza, Suite 1000 Houston, TX 77046	Vice President	Since 2012	Vice President, Treasurer and Principal Financial Officer, The Invesco Funds; Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser) (2009-Present) and Vice President, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2012-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); formerly, Treasurer, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust and PowerShares Actively Managed Exchange-Traded Fund Trust (2011-2013); Vice President, Invesco Aim Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc.; Assistant Vice President and Assistant Treasurer, The Invesco Funds and Assistant Vice President, Invesco Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc.
Rudolf E. Reitmann—1971 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Vice President	Since 2013	Vice President, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2013-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); Head of Global Exchange Traded Funds Operations, Invesco PowerShares Capital Management LLC (2013-Present).
Daniel E. Draper—1968 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Vice President	Since 2013	Senior Vice President, Invesco Distributors, Inc. (2014-Present); Vice President, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2013-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); Managing Director, Invesco PowerShares Capital Management LLC (2013-Present); formerly, Managing Director, Credit Suisse Asset Management (2010-2013) and Lyxor Asset Management/Societe Generale (2007-2010).
Steven M. Hill—1964 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Vice President and Treasurer	Since 2013	Vice President and Treasurer of PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2013-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); Head of Global ETF Administration, Invesco PowerShares Capital Management LLC (2011-Present); Principal Financial and Accounting Officer—Investment Pools, Invesco PowerShares Capital Management LLC (2015-Present); formerly, Senior Managing Director and Chief Financial Officer, Destra Capital Management LLC and its subsidiaries (2010-2011); Chief Financial Officer, Destra Investment Trust and Destra Investment Trust II (2010-2011); Senior Managing Director, Claymore Securities, Inc. (2003-2010); and Chief Financial Officer, Claymore sponsored mutual funds (2003-2010).
Christopher Joe—1969 Invesco Management Group, Inc. 11 Greenway Plaza, Suite 1000 Houston, TX 77046	Chief Compliance Officer	Since 2012	Deputy Chief Compliance Officer of Invesco Advisers, Inc. (2014-Present); Chief Compliance Officer of PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2012-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); U.S. Compliance Director, Invesco, Ltd. (2006-Present); formerly, Chief Compliance Officer, Invesco Investment Advisers, LLC (registered investment adviser) (2010-2013).

* This is the date the Officers began serving the Trust. Each Officer serves an indefinite term, until his or her successor is elected.

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Trustees and Officers (continued)

Name, Address and Year of Birth of Executive Officers	Position(s) Held with Trust	Length of Time Served*	Principal Occupation(s) During Past 5 Years
Anna Paglia—1974 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Secretary	Since 2011	Secretary, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2011-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); Head of Legal, Invesco PowerShares Capital Management LLC (2010-Present); formerly, Partner, K&L Gates LLP (formerly, Bell Boyd & Lloyd LLP) (2007-2010); Associate Counsel at Barclays Global Investors Ltd. (2004-2006).

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 Officers began serving the Trust. Each Officer serves an indefinite term, until his or her successor is elected.

85

Board Considerations Regarding Continuation of Investment Advisory Agreement

At a meeting held on April 16, 2015, the Board of Trustees of the PowerShares Exchange-Traded Fund Trust (the “Trust”), including the Independent Trustees, approved the continuation of the Investment Advisory Agreement between Invesco PowerShares Capital Management LLC (the “Adviser”) and the Trust for the following 51 series (each, a “Fund” and collectively, the “Funds”):

PowerShares Aerospace & Defense Portfolio

PowerShares BuyBack Achievers™ Portfolio

PowerShares Cleantech™ Portfolio

PowerShares Dividend Achievers^TM Portfolio

PowerShares DWA Momentum Portfolio

PowerShares DWA Basic Materials Momentum Portfolio

PowerShares DWA Consumer Cyclicals Momentum Portfolio

PowerShares DWA Consumer Staples Momentum Portfolio

PowerShares DWA Energy Momentum Portfolio

PowerShares DWA Financial Momentum Portfolio

PowerShares DWA Healthcare Momentum Portfolio

PowerShares DWA Industrials Momentum Portfolio

PowerShares DWA NASDAQ Momentum Portfolio

PowerShares DWA Technology Momentum Portfolio

PowerShares DWA Utilities Momentum Portfolio

PowerShares Dynamic Biotechnology & Genome Portfolio

PowerShares Dynamic Building & Construction Portfolio

PowerShares Dynamic Energy Exploration & Production Portfolio

PowerShares Dynamic Food & Beverage Portfolio

PowerShares Dynamic Large Cap Growth Portfolio

PowerShares Dynamic Large Cap Value Portfolio

PowerShares Dynamic Leisure and Entertainment Portfolio

PowerShares Dynamic Market Portfolio

PowerShares Dynamic Media Portfolio

PowerShares Dynamic Networking Portfolio

PowerShares Dynamic Oil & Gas Services Portfolio

PowerShares Dynamic Pharmaceuticals Portfolio

PowerShares Dynamic Retail Portfolio

PowerShares Dynamic Semiconductors Portfolio

PowerShares Dynamic Software Portfolio

PowerShares Financial Preferred Portfolio

PowerShares FTSE RAFI US 1000 Portfolio

PowerShares FTSE RAFI US 1500 Small-Mid Portfolio

PowerShares Fundamental Pure Large Core Portfolio

PowerShares Fundamental Pure Large Growth Portfolio

PowerShares Fundamental Pure Large Value Portfolio

PowerShares Fundamental Pure Mid Core Portfolio

PowerShares Fundamental Pure Mid Growth Portfolio

PowerShares Fundamental Pure Mid Value Portfolio

PowerShares Fundamental Pure Small Core Portfolio

PowerShares Fundamental Pure Small Growth Portfolio

PowerShares Fundamental Pure Small Value Portfolio

PowerShares Global Listed Private Equity Portfolio

PowerShares Golden Dragon China Portfolio

PowerShares High Yield Equity Dividend Achievers ^TM Portfolio

PowerShares International Dividend Achievers^TM Portfolio

PowerShares S&P 500^® High Quality Portfolio

PowerShares Water Resources Portfolio

PowerShares WilderHill Clean Energy Portfolio

PowerShares WilderHill Progressive Energy Portfolio

PowerShares Zacks Micro Cap Portfolio

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 a Fund grows, (v) whether fee levels reflect any possible economies of scale for the benefit of Fund shareholders, (vi) comparisons of services rendered to and amounts paid by 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 staffing, including operational support 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 and/or oversight of execution of portfolio transactions on behalf of the Funds. The Trustees also reviewed information on the performance of the Funds and their underlying indexes for the one-year, three-year, five-year, ten-year and since-inception periods ended December 31, 2014, as applicable, including reports for each of those periods on the correlation and tracking error between each Fund’s performance and the performance of its underlying index, as well as the Adviser’s analysis of the tracking error between PowerShares Global Listed Private Equity Portfolio and its underlying index. In reviewing the tracking error report, the Trustees considered information provided by Ibbotson Associates, a consultant to the Independent Trustees, with respect to general expected tracking error ranges and various explanations for any tracking error. The Trustees noted that for each applicable period the

86

Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)

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, effort and resources 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 advisory fee and net expense ratio, as compared to information compiled by the Adviser from Lipper Inc. databases on the advisory fees and net expense ratios of comparable exchange-traded funds (“ETFs”), open-end (non-ETF) index funds and open-end (non-ETF) actively-managed funds. The Trustees noted that the annual advisory fee charged to each Fund is:

— 0.50% of the Fund’s average daily net assets for each Fund other than PowerShares Dividend Achievers™ Portfolio, PowerShares High Yield Equity Dividend Achievers™ Portfolio, PowerShares International Dividend Achievers™ Portfolio, PowerShares FTSE RAFI US 1000 Portfolio, PowerShares FTSE RAFI US 1500 Small-Mid Portfolio, PowerShares Fundamental Pure Large Core Portfolio, PowerShares Fundamental Pure Large Growth Portfolio, PowerShares Fundamental Pure Large Value Portfolio, PowerShares Fundamental Pure Mid Core Portfolio, PowerShares Fundamental Pure Mid Growth Portfolio, PowerShares Fundamental Pure Mid Value Portfolio, PowerShares Fundamental Pure Small Core Portfolio, PowerShares Fundamental Pure Small Growth Portfolio, PowerShares Fundamental Pure Small Value Portfolio and PowerShares S&P 500^® High Quality Portfolio;

— 0.40% of the Fund’s average daily net assets for each of PowerShares Dividend Achievers™ Portfolio, PowerShares High Yield Equity Dividend Achievers™ Portfolio and PowerShares International Dividend Achievers™ Portfolio; and

— 0.29% of the Fund’s average daily net assets for each of PowerShares FTSE RAFI US 1000 Portfolio, PowerShares FTSE RAFI US 1500 Small-Mid Portfolio, PowerShares Fundamental Pure Large Core Portfolio¹, PowerShares Fundamental Pure Large Growth Portfolio, PowerShares Fundamental Pure Large Value Portfolio, PowerShares Fundamental Pure Mid Core Portfolio¹, PowerShares Fundamental Pure Mid Growth Portfolio, PowerShares Fundamental Pure Mid Value Portfolio, PowerShares Fundamental Pure Small Core Portfolio¹, PowerShares Fundamental Pure Small Growth Portfolio, PowerShares Fundamental Pure Small Value Portfolio and PowerShares S&P 500^® High Quality Portfolio.

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, 2016, as set forth below:

— 0.60%, excluding interest expenses, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses, for each of PowerShares DWA NASDAQ Momentum Portfolio and PowerShares Dynamic Market Portfolio;

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

— 0.39%, excluding interest expenses, offering costs, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses, for each of PowerShares FTSE RAFI US 1000 Portfolio, PowerShares FTSE RAFI US 1500 Small-Mid Portfolio, PowerShares Fundamental Pure Large Core Portfolio², PowerShares Fundamental Pure Large Growth Portfolio, PowerShares Fundamental Pure Large Value Portfolio, PowerShares Fundamental Pure Mid Core Portfolio², PowerShares Fundamental Pure Mid Growth Portfolio, PowerShares Fundamental Pure Mid Value Portfolio, PowerShares Fundamental Pure Small Core Portfolio², PowerShares Fundamental Pure Small Growth Portfolio and PowerShares Fundamental Pure Small Value Portfolio;

¹  The annual management fee for PowerShares Fundamental Pure Large Core Portfolio, PowerShares Fundamental Pure Mid Core Portfolio and PowerShares Fundamental Pure Small Core Portfolio will be reduced to 0.25% of each Fund’s average daily net assets, effective May 22, 2015. Pure Small Value Portfolio and PowerShares S&P 500^® High Quality Portfolio.

²  The Expense Cap for PowerShares Fundamental Pure Large Core Portfolio, PowerShares Fundamental Pure Mid Core Portfolio and PowerShares Fundamental Pure Small Core Portfolio will be reduced such that annual operating expenses of each Fund will not exceed 0.25% of its average daily net assets, effective May 22, 2015.

87

Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)

— 0.29%, excluding interest expenses, offering costs, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses, for PowerShares S&P 500^® High Quality Portfolio;

— 0.60%, excluding interest expenses, offering costs, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses, for PowerShares DWA Basic Materials Momentum Portfolio, PowerShares DWA Consumer Cyclicals Momentum Portfolio, PowerShares DWA Consumer Staples Momentum Portfolio, PowerShares DWA Energy Momentum Portfolio, PowerShares DWA Financial Momentum Portfolio, PowerShares DWA Healthcare Momentum Portfolio, PowerShares DWA Industrials Momentum Portfolio, PowerShares DWA Technology Momentum Portfolio and PowerShares DWA Utilities Momentum Portfolio; and

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

The Trustees noted that the Adviser represented that it does not serve as the investment adviser to any clients, other than other ETFs also overseen by the Trustees, with comparable investment strategies as the Funds, but that the Adviser provides sub-advisory services to clients with comparable investment strategies as certain of the Funds. The Trustees further noted the Adviser’s explanation with respect to the sub-advisory fees it receives for such services in comparison to the advisory fees charged to the Funds. The Trustees noted that the advisory fees for certain Funds were equal to or lower than the median advisory fees of their ETF and open-end index peer funds as illustrated in the table below. The Trustees also noted that the advisory fees for all of the Funds were lower than the median advisory fees of their open-end actively-managed peer funds.

PowerShares Fund	Equal to/Lower than ETF Median	Equal to/Lower than Open-End Index Fund Median3	Equal to/Lower than Open-End Active Fund Median
PowerShares Aerospace & Defense Portfolio		N/A	X
PowerShares Buyback Achievers Portfolio			X
PowerShares Cleantech Portfolio		N/A	X
PowerShares Dividend Achievers Portfolio		X	X
PowerShares DWA Basic Materials Momentum Portfolio		N/A	X
PowerShares DWA Consumer Cyclicals Momentum Portfolio		N/A	X
PowerShares DWA Consumer Staples Momentum Portfolio	X	N/A	X
PowerShares DWA Energy Momentum Portfolio		N/A	X
PowerShares DWA Financial Momentum Portfolio		N/A	X
PowerShares DWA Healthcare Momentum Portfolio		N/A	X
PowerShares DWA Industrials Momentum Portfolio		N/A	X
PowerShares DWA Momentum Portfolio		X	X
PowerShares DWA NASDAQ Momentum Portfolio		X	X
PowerShares DWA Technology Momentum Portfolio			X
PowerShares DWA Utilities Momentum Portfolio			X
PowerShares Dynamic Biotechnology & Genome Portfolio		N/A	X
PowerShares Dynamic Building & Construction Portfolio		N/A	X
PowerShares Dynamic Energy Exploration & Production Portfolio		N/A	X
PowerShares Dynamic Food & Beverage Portfolio	X	N/A	X
PowerShares Dynamic Large Cap Growth Portfolio			X
PowerShares Dynamic Large Cap Value Portfolio			X

³  The information provided by the Adviser indicated that certain Funds did not have open-end index fund peers. Those Funds have been designated with an “N/A” for not available.

88

Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)

PowerShares Fund	Equal to/Lower than ETF Median	Equal to/Lower than Open-End Index Fund Median3	Equal to/Lower than Open-End Active Fund Median
PowerShares Dynamic Leisure and Entertainment Portfolio		N/A	X
PowerShares Dynamic Market Portfolio			X
PowerShares Dynamic Media Portfolio		N/A	X
PowerShares Dynamic Networking Portfolio			X
PowerShares Dynamic Oil & Gas Services Portfolio		N/A	X
PowerShares Dynamic Pharmaceuticals Portfolio		N/A	X
PowerShares Dynamic Retail Portfolio		N/A	X
PowerShares Dynamic Semiconductors Portfolio			X
PowerShares Dynamic Software Portfolio			X
PowerShares Financial Preferred Portfolio	X	N/A	X
PowerShares FTSE RAFI US 1000 Portfolio			X
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio	X		X
PowerShares Fundamental Pure Large Core Portfolio		X	X
PowerShares Fundamental Pure Large Growth Portfolio		X	X
PowerShares Fundamental Pure Large Value Portfolio			X
PowerShares Fundamental Pure Mid Core Portfolio			X
PowerShares Fundamental Pure Mid Growth Portfolio	X	X	X
PowerShares Fundamental Pure Mid Value Portfolio		X	X
PowerShares Fundamental Pure Small Core Portfolio	X		X
PowerShares Fundamental Pure Small Growth Portfolio		X	X
PowerShares Fundamental Pure Small Value Portfolio	X	X	X
PowerShares Global Listed Private Equity Portfolio	X	N/A	X
PowerShares Golden Dragon China Portfolio	X	N/A	X
PowerShares High Yield Equity Dividend Achievers Portfolio		X	X
PowerShares International Dividend Achievers Portfolio	X	X	X
PowerShares S&P 500 High Quality Portfolio			X
PowerShares Water Resources Portfolio		N/A	X
PowerShares WilderHill Clean Energy Portfolio		N/A	X
PowerShares WilderHill Progressive Energy Portfolio		N/A	X
PowerShares Zacks Micro Cap Portfolio			X

The Trustees determined that the advisory fees were reasonable, noting the nature of the indexes, the distinguishing factors of the Funds, and the administrative, operational and management oversight costs for the Adviser. The Trustees noted that the net expense ratios for certain Funds were equal to or lower than the median net expense ratios of their ETF and open-end index peer funds as illustrated in the table below. The Trustees also noted that the net expense ratios for all of the Funds were lower than the median net expense ratios of their open-end actively-managed peer funds.

PowerShares Fund	Equal to/Lower than ETF Median	Equal to/Lower than Open-End Index Fund Median	Equal to/Lower than Open-End Active Fund Median
PowerShares Aerospace & Defense Portfolio		N/A	X
PowerShares Buyback Achievers Portfolio			X
PowerShares Cleantech Portfolio		N/A	X
PowerShares Dividend Achievers Portfolio		X	X

89

Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)

PowerShares Fund	Equal to/Lower than ETF Median	Equal to/Lower than Open-End Index Fund Median	Equal to/Lower than Open-End Active Fund Median
PowerShares DWA Basic Materials Momentum Portfolio		N/A	X
PowerShares DWA Consumer Cyclicals Momentum Portfolio		N/A	X
PowerShares DWA Consumer Staples Momentum Portfolio		N/A	X
PowerShares DWA Energy Momentum Portfolio		N/A	X
PowerShares DWA Financial Momentum Portfolio		N/A	X
PowerShares DWA Healthcare Momentum Portfolio		N/A	X
PowerShares DWA Industrials Momentum Portfolio		N/A	X
PowerShares DWA Momentum Portfolio		X	X
PowerShares DWA NASDAQ Momentum Portfolio		X	X
PowerShares DWA Technology Momentum Portfolio		X	X
PowerShares DWA Utilities Momentum Portfolio		X	X
PowerShares Dynamic Biotechnology & Genome Portfolio		N/A	X
PowerShares Dynamic Building & Construction Portfolio		N/A	X
PowerShares Dynamic Energy Exploration & Production Portfolio		N/A	X
PowerShares Dynamic Food & Beverage Portfolio		N/A	X
PowerShares Dynamic Large Cap Growth Portfolio			X
PowerShares Dynamic Large Cap Value Portfolio			X
PowerShares Dynamic Leisure and Entertainment Portfolio		N/A	X
PowerShares Dynamic Market Portfolio			X
PowerShares Dynamic Media Portfolio		N/A	X
PowerShares Dynamic Networking Portfolio		X	X
PowerShares Dynamic Oil & Gas Services Portfolio		N/A	X
PowerShares Dynamic Pharmaceuticals Portfolio		N/A	X
PowerShares Dynamic Retail Portfolio		N/A	X
PowerShares Dynamic Semiconductors Portfolio		X	X
PowerShares Dynamic Software Portfolio		X	X
PowerShares Financial Preferred Portfolio	X	N/A	X
PowerShares FTSE RAFI US 1000 Portfolio			X
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio		X	X
PowerShares Fundamental Pure Large Core Portfolio		X	X
PowerShares Fundamental Pure Large Growth Portfolio		X	X
PowerShares Fundamental Pure Large Value Portfolio			X
PowerShares Fundamental Pure Mid Core Portfolio		X	X
PowerShares Fundamental Pure Mid Growth Portfolio	X	X	X
PowerShares Fundamental Pure Mid Value Portfolio		X	X
PowerShares Fundamental Pure Small Core Portfolio		X	X
PowerShares Fundamental Pure Small Growth Portfolio		X	X
PowerShares Fundamental Pure Small Value Portfolio		X	X
PowerShares Global Listed Private Equity Portfolio		N/A	X
PowerShares Golden Dragon China Portfolio	X	N/A	X
PowerShares High Yield Equity Dividend Achievers Portfolio		X	X
PowerShares International Dividend Achievers Portfolio	X	X	X

90

Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)

PowerShares Fund	Equal to/Lower than ETF Median	Equal to/Lower than Open-End Index Fund Median	Equal to/Lower than Open-End Active Fund Median
PowerShares S&P 500 High Quality Portfolio	X	X	X
PowerShares Water Resources Portfolio		N/A	X
PowerShares WilderHill Clean Energy Portfolio		N/A	X
PowerShares WilderHill Progressive Energy Portfolio		N/A	X
PowerShares Zacks Micro Cap Portfolio			X

The Trustees noted that a significant component of the non-advisory fee expenses was the license fees paid by the Funds, and noted 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.

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 overall profitability as well as the estimated profitability to the Adviser from its relationship to each Fund. The Trustees concluded that the overall and estimated profitability to the Adviser was not unreasonable.

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 DWA NASDAQ Momentum 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.

91

Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)

At a meeting held on April 16, 2015, the Board of Trustees of the PowerShares Exchange-Traded Fund Trust (the “Trust”), including the Independent Trustees, 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 together, the “Funds”).

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 a Fund grows, (v) whether fee levels reflect any possible economies of scale for the benefit of Fund shareholders, (vi) comparisons of services rendered to and amounts paid by 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 staffing, including operational support 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 their underlying indexes for the one-year, three-year, five-year and since-inception (June 12, 2008 for PowerShares NASDAQ Internet Portfolio and December 20, 2007 for PowerShares S&P 500 BuyWrite Portfolio) periods ended December 31, 2014, including reports for each of those periods on the correlation and tracking error between each Fund’s performance and the performance of its underlying index, as well as the Adviser’s analysis of the tracking error between each Fund and its underlying index. In reviewing the tracking error report, the Trustees considered information provided by Ibbotson Associates, a consultant to the Independent Trustees, with respect to general expected tracking error ranges and various explanations for any tracking error. The Trustees noted that for each period, 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, effort and resources 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 net expense ratio and unitary advisory fee, as compared to information compiled by the Adviser from Lipper Inc. databases on the net expense ratios of comparable exchange-traded funds (“ETFs”), open-end (non-ETF) index funds and open-end (non-ETF) 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, litigation expenses and other extraordinary expenses.

The Trustees noted that the Adviser represented that it does not serve as an investment adviser to any clients, other than other ETFs also overseen by the Trustees, with comparable investment strategies as the Funds. The Trustees noted that PowerShares NASDAQ Internet Portfolio’s net expense ratio was higher than the median net expense ratio of its ETF peer funds, but was lower than the median net expense ratios of its open-end index peer funds and open-end actively-managed peer funds. The Trustees noted that PowerShares S&P 500 BuyWrite Portfolio’s net expense ratio was lower than the median net 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 nature of the indexes, the distinguishing factors of the Funds and the 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

92

Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)

Adviser on its overall profitability as well as the estimated profitability to the Adviser from its relationship to each Fund. The Trustees concluded that the overall and estimated profitability to the Adviser was not unreasonable.

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 and expense ratio. The Trustees noted that any reduction in fixed costs associated with the management of the Funds would be enjoyed by the Adviser, but a unitary fee provides a level of certainty in expenses for the Funds. 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.

The Trustees noted that the Adviser had not identified any further benefits that it derived from its relationships 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.

93

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Proxy Voting Policies and Procedures

A description of the Trust’s 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 each Fund 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 Trust files its complete schedule of portfolio holdings for the Funds 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, DC; information on the operation of the Public Reference Room may be obtained by calling (800) SEC-0330.

Frequency Distribution of Discounts and Premiums

A table showing the number of days the market price of each Fund’s shares was greater than the Fund’s net asset value, and the number of days it was less than the Fund’s net asset value (i.e., premium or discount) for the most recently completed calendar year, and the calendar quarters since that year end (or the life of the Fund, if shorter) may be found at the Fund’s website at www.invescopowershares.com.

©2015 Invesco PowerShares Capital Management LLC			P-PS-AR-4
3500 Lacey Road, Suite 700 Downers Grove, IL 60515
invescopowershares.com    800.983.0903		@PowerShares

April 30, 2015

2015 Annual Report to Shareholders

PKW	PowerShares BuyBack AchieversTM Portfolio
PFM	PowerShares Dividend AchieversTM Portfolio
PGF	PowerShares Financial Preferred Portfolio
PEY	PowerShares High Yield Equity Dividend AchieversTM Portfolio
PID	PowerShares International Dividend AchieversTM Portfolio

Table of Contents

The Market Environment	3
Manager’s Analysis	4
Dividend Income Portfolios
Schedules of Investments
PowerShares BuyBack AchieversTM Portfolio (PKW)	18
PowerShares Dividend AchieversTM Portfolio (PFM)	21
PowerShares Financial Preferred Portfolio (PGF)	24
PowerShares High Yield Equity Dividend AchieversTM Portfolio (PEY)	26
PowerShares International Dividend AchieversTM Portfolio (PID)	28
Statements of Assets and Liabilities	30
Statements of Operations	31
Statements of Changes in Net Assets	32
Financial Highlights	34
Notes to Financial Statements	37
Report of Independent Registered Public Accounting Firm	46
Fees and Expenses	47
Tax Information	49
Trustees and Officers	50
Board Considerations Regarding Continuation of Investment Advisory Agreement	55

2

The Market Environment

Domestic Equity

Slow and steady improvement in the US economy and continued low interest rates led the US equity market higher during the fiscal year ended April 30, 2015. As the US economy continued along a slow growth path, the US Federal Reserve steadily reduced its asset purchase program, finally ending all purchases in October 2014. The reporting period began with corporate earnings bouncing back from a weather-related downturn resulting from an unusually harsh winter that negatively affected consumer spending. Stocks generally rallied through the summer of 2014 despite political upheaval in Ukraine and signs of economic sluggishness in China. In mid-September, as investors wrestled with evidence that economic growth appeared to be stronger in the US than in the rest of the world, the price of oil began a sharp and prolonged decline, causing US equities to fall. US equities recovered before the end of calendar year 2014, however. As calendar year 2015 began, investors were generally heartened by positive US economic data, but there was concern that if Greece failed to reach an agreement with the eurozone on a financial bailout plan, the repercussions would be felt more broadly. On balance, however, the general trend for US equities was positive.

International Equity

Global equities delivered generally moderate returns for the fiscal year ended April 30, 2015. Factors affecting global equity markets’ performance included generally positive, but subdued, economic growth, as well as varied monetary policies implemented by central banks around the world — and the effects those varied policies had on currencies.

In the US, the economy continued to expand, albeit slowly. While the US Federal Reserve Bank ended its quantitative easing program and suggested it was more comfortable with raising interest rates, the European Central Bank implemented new and more stimulative monetary policy in the form of asset purchases in an effort to prevent deflation. This policy divergence supported the continued strength of the US dollar. Meanwhile, the Bank of Japan increased its already extraordinary monetary stimulus, driving the yen lower and Japanese equities higher.

While a more aggressive monetary policy in the Eurozone failed to immediately ignite economic recovery, it briefly boosted European equity prices. Equity markets’ performance in emerging markets was mixed. In Russia, markets declined significantly — the result of a sharp drop in energy prices and heightened concerns about a possible recession. China continued to struggle to balance structural reforms with its desire for growth, while other Asian exporting countries also faced headwinds from slower global consumption.

Global equity markets pulled back at various points during the year in reaction to economic and geopolitical developments. In particular, ongoing geopolitical tensions in Ukraine and the Middle East, along with the election of a new anti-austerity Greek government increased volatility and weakened the outlook for global economic growth. Nonetheless, most global equity markets ended the fiscal year in positive territory.

3

PKW	Manager’s Analysis
	PowerShares BuyBack Achievers™ Portfolio (PKW)

As an index fund, the PowerShares BuyBack Achievers™ Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the NASDAQ US BuyBack Achievers™ Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks that comprise the Index.

The NASDAQ OMX Group, Inc. (the “Index Provider”) compiles, maintains and calculates the Index, which is designed to track the performance of issuers that are classified as “BuyBack Achievers™”. In order to be eligible for inclusion in the Index, an issuer must (i) be incorporated in the United States or certain benefits-driven incorporation countries (i.e., countries that provide tax or other benefits for incorporation); (ii) trade on the NASDAQ, NYSE or NYSE MKT; (iii) have effected a net reduction in shares outstanding of 5% or more in the past 12 months; and (iv) have a minimum average daily cash volume of $500,000 in October, November and December prior to each annual reconstitution of the Index in January. Strictly in accordance with its existing guidelines and mandated procedures, the Index Provider weights the universe of companies according to a modified market capitalization, using each company’s eligible shares outstanding and the closing price at the company’s last trading day in December. No single company may exceed 5% of the Index as of either a reconstitution or rebalance date. The Index Provider will modify the Index weight of companies with market capitalizations that exceed 5% of the Index to equal 5% of the Index. The Index Provider will redistribute the excess amounts from companies whose initial market capitalizations exceeded 5% of the Index among the remaining companies in proportion to their initial weights until no company exceeds 5% of the Index. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2015, on a market price basis, the Fund returned 13.61%. On a net asset value (“NAV”) basis, the Fund returned 13.63%. During the same time period, the Index returned 14.35%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period.

During this same time period, the S&P 500^® Index (the “Benchmark Index”) returned 12.98%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 500 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of a broad U.S. equity market benchmark. The Benchmark Index was selected for its recognition

in the marketplace, and its performance comparison is a useful measure for investors as a broad representation of the U.S. equity market.

The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an Index that employs a modified market capitalization weighting methodology and stock selection methodology based on stock buybacks, whereas the Benchmark Index weights stocks based on market capitalization and does not have a buyback methodology.

Relative to the Benchmark Index, the Fund was most overweight in the consumer discretionary sector and most underweight in the consumer staples sector during the fiscal year ended April 30, 2015. The majority of the Fund’s outperformance relative to the Benchmark Index during that period can be attributed to the Fund’s allocation to the consumer discretionary sector and stock selection within the industrials sector.

For the fiscal year ended April 30, 2015, the consumer discretionary sector contributed most significantly to the Fund’s return, followed by the information technology and industrials sectors, respectively. The energy sector detracted most significantly from the Fund’s return, followed by the telecommunication services (no longer held) and utilities sectors, respectively.

Positions that contributed most significantly to the Fund’s return included The Home Depot, Inc., a consumer discretionary company (portfolio average weight of 5.26%), and Lowe’s Cos., Inc., a consumer discretionary company (portfolio average weight of 3.18%). Positions that detracted most significantly from the Fund’s return included Halliburton Co., an energy company (no longer held at fiscal year-end), and Viacom, Inc., Class B, a consumer discretionary company (portfolio average weight of 1.63%).

Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2015
Consumer Discretionary	30.0
Information Technology	20.5
Industrials	16.0
Financials	11.3
Health Care	7.4
Materials	7.2
Energy	6.1
Consumer Staples	1.1
Utilities	0.4
Money Market Funds Plus Other Assets Less Liabilities	0.0

4

PowerShares BuyBack Achievers™ Portfolio (PKW) (continued)

Top Ten Fund Holdings (% of the Fund’s Net Assets) as of April 30, 2015
Security
International Business Machines Corp.	5.4
Apple, Inc.	5.1
Home Depot, Inc. (The)	4.8
Boeing Co. (The)	4.5
Time Warner, Inc.	3.1
Lowe’s Cos., Inc.	2.9
Express Scripts Holding Co.	2.8
Monsanto Co.	2.5
FedEx Corp.	2.1
General Dynamics Corp.	2.0
Total	35.2

5

PowerShares BuyBack Achievers^TM Portfolio (PKW) (continued)

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

Fund Performance History as of April 30, 2015

	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			Fund Inception†
Index																Average Annualized			Cumulative
NASDAQ US BuyBack Achievers™ Index		14.35	%		20.42	%		74.62	%		18.72	%		135.82	%		10.09	%		123.43	%
S&P 500® Index		12.98			16.73			59.05			14.33			95.31			6.94			75.20
Fund
NAV Return		13.63			19.58			70.99			17.90			127.83			9.30			110.23
Market Price Return		13.61			19.57			70.96			17.89			127.68			9.27			109.86

Fund Inception: December 20, 2006

Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2016. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.68%, including acquired fund fees and expenses of 0.02%. The Financial Highlights section of the Shareholders Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and

capital gain distributions have been reinvested in the Fund at NAV and Market 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 and Benchmark 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 and Benchmark Index do 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.

^†  Fund, Index and Benchmark Index returns are based on the inception date of the Fund.

6

PFM	Manager’s Analysis
	PowerShares Dividend Achievers™ Portfolio (PFM)

As an index fund, the PowerShares Dividend Achievers™ Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the NASDAQ US Broad Dividend Achievers™ Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks of companies that comprise the Index.

NASDAQ OMX Group, Inc. (the “Index Provider”) compiles, maintains and calculates the Index. The Index is designed to track the performance of issuers that meet the requirements to be classified as “Dividend Achievers™.” To become eligible for inclusion in the Index, an issuer must (i) be included in the NASDAQ US Benchmark Index (other than limited partnerships, which must trade on the NASDAQ, NYSE or NYSE MKT); (ii) have raised its annual regular dividend payments for at least each of the last ten consecutive years; and (iii) have a minimum three-month average daily trading volume of $1 million. Strictly in accordance with its existing guidelines and mandated procedures, the Index Provider calculates the total annual regular cash dividend payment for each security in the universe of issuers using the last available ex-dividend date for the previous year. The Index Provider weights the universe of issuers according to a modified market capitalization methodology. The Index Provider will rebalance the Index on a quarterly basis, using each issuer’s closing price on the last trading day in February, May, August and November. At the rebalance date, no single issuer’s weight may exceed 4% of the weight of the Index. The Index Provider will redistribute the excess amounts proportionately from larger issuers until no issuer’s weight exceeds 4% of the Index. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2015, on a market price basis, the Fund returned 6.44%. On a net asset value (“NAV”) basis, the Fund returned 6.54%. During the same time period, the Index returned 7.15%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses incurred by the Fund.

During this same time period, the Russell 3000^® Value Index (the “Benchmark Index”) returned 8.96%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 2,070 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of a broad based market benchmark. The Benchmark Index was selected for its recognition in the marketplace, and its performance comparison is a useful measure for investors as a broad representation of the value segment of the US equity universe.

The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an Index that employs a modified market capitalization weighting methodology and stock selection methodology based on dividend-paying stocks, whereas the Benchmark Index weights stocks based on market capitalization and focuses on lower price-to-book and lower forecasted growth values.

Relative to the Benchmark Index, the Fund was most overweight in the consumer staples sector and most underweight in the financials sector during the fiscal year ended April 30, 2015. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to the Fund being underweight in the health care sector and security selection in the information technology sector. Additionally, the Fund underperformed the Benchmark Index largely because of its stock concentrations within the consumer staples, energy, and industrials sectors.

For the fiscal year ended April 30, 2015, the consumer staples sector contributed most significantly to the Fund’s return, followed by the consumer discretionary and industrials sectors, respectively. The energy sector was the only detracting sector.

Positions that contributed most significantly to the Fund’s return included CVS Health Corp., a consumer staples company (portfolio average weight of 1.76%), and Microsoft Corp., an information technology company (portfolio average weight of 0.44%). Positions that detracted most significantly from the Fund’s return included Exxon Mobil Corp., an energy company (portfolio average weight of 3.92%), and International Business Machines Corp., an information technology company (portfolio average weight of 3.04%).

Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2015
Consumer Staples	22.6
Industrials	13.8
Energy	13.3
Information Technology	11.5
Health Care	9.0
Consumer Discretionary	7.6
Financials	6.1
Telecommunication Services	5.9
Utilities	5.6
Materials	4.5
Other Assets Less Liabilities	0.1

7

PowerShares Dividend Achievers™ Portfolio (PFM) (continued)

Top Ten Fund Holdings (% of the Fund’s Net Assets) as of April 30, 2015
Security
Microsoft Corp.	4.5
Exxon Mobil Corp.	4.0
Johnson & Johnson	3.9
Wal-Mart Stores, Inc.	3.8
Procter & Gamble Co. (The)	3.2
Verizon Communications, Inc.	3.2
Chevron Corp.	3.1
AT&T, Inc.	2.7
Coca-Cola Co. (The)	2.7
International Business Machines Corp.	2.6
Total	33.7

8

PowerShares Dividend Achievers™ Portfolio (PFM) (continued)

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

Fund Performance History as of April 30, 2015

	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			Fund Inception†
Index																Average Annualized			Cumulative
NASDAQ US Broad Dividend Achievers™ Index		7.15	%		13.62	%		46.69	%		13.21	%		85.99	%		6.79	%		88.14	%
Russell 3000® Value Index		8.96			16.98			60.09			13.15			85.50			7.00			91.81
Fund
NAV Return		6.54			12.99			44.26			12.56			80.67			6.14			77.35
Market Price Return		6.44			12.98			44.22			12.54			80.49			6.12			77.17

Fund Inception: September 15, 2005

Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2016. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.55%. The Financial Highlights section of the Shareholders Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund

at NAV and Market 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 and Benchmark 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 and Benchmark Index do 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.

^†  Fund, Index and Benchmark Index returns are based on the inception date of the Fund.

9

PGF	Manager’s Analysis
	PowerShares Financial Preferred Portfolio (PGF)

As an index fund, the PowerShares Financial Preferred Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Wells Fargo^® Hybrid & Preferred Securities Financial Index (the “Index”). The Fund generally will invest at least 90% of its total assets in preferred securities of financial institutions that comprise the Index.

Wells Fargo (the “Index Provider”) compiles, maintains and calculates the Index. Strictly in accordance with its existing guidelines and mandated procedures, the Index provider selects constituents for the Index to attempt to portray a cross-section of the universe of preferred and functionally equivalent securities issued by financial institutions and listed on the NYSE, NYSE MKT or NASDAQ and that meet certain criteria. The Index is composed of preferred securities with either fixed or floating rate dividends issued by financial institutions that have received an industrial sector classification of “financial” from the Bloomberg Professional Service. The Index Provider includes securities in the Index pursuant to a proprietary selection methodology based on a number of criteria including ratings, perpetual maturity, US dollar-denominated, minimum par value of shares outstanding, dividend classification and liquidity requirements. The constituents are then weighted using a modified market capitalization methodology designed to limit the concentration of the largest securities. No security may account for more than 20% of the Index. The Fund does not purchase all of the securities in the Index; instead, the Fund utilizes a “sampling” methodology to seek to achieve its investment objective.

For the fiscal year ended April 30, 2015, on a market price basis, the Fund returned 8.85%. On a net asset value (“NAV”) basis, the Fund returned 8.73%. During the same time period, the Index returned 9.16%. The Fund’s performance differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period.

During this same time period, the S&P U.S. Preferred Stock Index (the “Benchmark Index”) returned 7.80%. The Benchmark Index is an unmanaged index weighted by modified market capitalization based on the average performance of approximately 300 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of a broader preferred stock benchmark. The Benchmark Index was selected for its recognition in the marketplace, and its performance comparison is a useful measure for investors as a broader representation of the U.S. preferred stock market, which includes convertible preferred stocks.

The Fund focuses on financial sector preferred securities while the Benchmark Index is a broader representation of the preferred

stock market. As such, the outperformance of the Fund compared to the Benchmark Index can mainly be attributed to a difference in financial sector focus.

For the fiscal year ended April 30, 2015, the banks industry contributed most significantly to the Fund’s return, followed by the capital markets and insurance industries, respectively. There were no detracting industries.

Positions that contributed most significantly to the Fund’s return included HSBC Holdings PLC, 8.00%, Series 2, a commercial banks company (portfolio average weight of 7.62%), and Barclays Bank PLC, 8.13%, Series 5, a commercial banks company (portfolio average weight of 4.16%). There were no detracting positions.

Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2015
Banks	71.7
Capital Markets	14.0
Insurance	10.1
Consumer Finance	4.6
Money Market Fund Plus Other Assets Less Liabilities	(0.4)
Top Ten Fund Holdings (% of the Fund’s Net Assets) as of April 30, 2015
Security
HSBC Holdings PLC, 8.00%, Series 2	7.3
Barclays Bank PLC, 8.13%, Series 5	4.0
ING Groep NV, 7.38%	3.8
Wells Fargo & Co., 8.00%, Series J	3.4
PNC Financial Services Group, Inc. (The), 6.13%, Series P	3.0
BB&T Corp., 5.63%, Series E	2.7
HSBC Holdings PLC, 8.13%	2.5
Wells Fargo & Co., 5.85%	2.3
ING Groep NV, 6.38%	2.1
JPMorgan Chase & Co., 5.50%, Series O	2.1
Total	33.2

10

PowerShares Financial Preferred Portfolio (PGF) (continued)

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

Fund Performance History as of April 30, 2015

	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			Fund Inception†
Index																Average Annualized			Cumulative
Wells Fargo® Hybrid & Preferred Securities Financial Index		9.16	%		8.01	%		26.02	%		9.26	%		55.72	%		4.78	%		48.11	%
S&P U.S. Preferred Stock Index		7.80			7.96			25.83			8.12			47.74			4.98			50.46
Fund
NAV Return		8.73			7.65			24.74			8.56			50.75			3.76			36.38
Market Price Return		8.85			7.59			24.53			8.62			51.19			3.67			35.43

Fund Inception: December 1, 2006

Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2016. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.63%. The Financial Highlights section of the Shareholders Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund

at NAV and Market 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 and Benchmark 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 and Benchmark Index do 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.

^†  Fund, Index and Benchmark Index returns are based on the inception date of the Fund.

11

PEY	Manager’s Analysis
	PowerShares High Yield Equity Dividend AchieversTM Portfolio (PEY)

As an index fund, the PowerShares High Yield Equity Dividend Achievers^TM Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the NASDAQ US Dividend Achievers^TM 50 Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks of companies that comprise the Index.

The NASDAQ OMX Group, Inc. (the “Index Provider”) compiles, maintains and calculates the Index. Strictly in accordance with its existing guidelines and mandated procedures, the Index Provider includes common stocks in the Index, principally on the basis of dividend yield and consistent growth in dividends. To become eligible for inclusion in the Index, a security must be included in the NASDAQ US Broad Dividend Achievers^TM Index, have a minimum market capitalization of $1 billion, and cannot be a real estate investment trust or limited partnership. For the annual reconstitution, securities that meet the eligibility criteria as of the end of December are ranked in descending order based on their trailing 12 months dividend yield as of the last trading day in February. The top 50 securities are included in the Index and weighted according to a modified dividend yield weighted methodology. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2015, on a market price basis, the Fund returned 12.89%. On a net asset value (“NAV”) basis, the Fund returned 12.89%. During the same time period, the Index returned 13.46%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period.

During this same time period, the Dow Jones U.S. Select Dividend Index (the “Benchmark Index”) returned 8.42%. The Benchmark Index is an unmanaged index weighted by indicated dividend yield based on the average performance of approximately 100 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of a similar dividend-weighted index.

The performance of the Fund differed from the Benchmark Index in part because the selection methodology of the Benchmark Index differs from the selection methodology of the Index that the Fund tracks.

Relative to the Benchmark Index, the Fund was most overweight in the gas utilities industry and most underweight in the electric utilities industry during the fiscal year ended April 30, 2015. The majority of the Fund’s outperformance relative to the Benchmark Index during that period can be attributed to stock selection within

the oil, gas & consumable fuels and household durables industries, as well as allocation to the energy equipment & services industry.

For the fiscal year ended April 30, 2015, the gas utilities industry contributed most significantly to the Fund’s return, followed by the tobacco and insurance industries, respectively. The technology hardware storage & peripherals industry (no longer held) detracted most significantly from the Fund’s return, followed by the personal products and metals & mining industries, respectively.

Positions that contributed most significantly to the Fund’s return included Cracker Barrel Old Country Store, Inc., a hotels, restaurants & leisure company (no longer held at fiscal year-end), and WGL Holdings, Inc., a gas utilities company (no longer held at fiscal year-end). Positions that detracted most significantly from the Fund’s return included Westamerica Bancorp., a commercial banks company (portfolio average weight of 1.73%), and Universal Corp., a tobacco company (portfolio average weight of 2.25%).

Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2015
Oil, Gas & Consumable Fuels	13.9
Banks	9.8
Tobacco	9.5
Electric Utilities	8.5
Insurance	7.9
Gas Utilities	7.7
Multi-Utilities	7.5
Diversified Telecommunication Services	5.4
Hotels, Restaurants & Leisure	3.7
Food Products	3.3
Household Products	3.3
Energy Equipment & Services	2.6
Machinery	1.9
Personal Products	1.8
Metals & Mining	1.8
Media	1.8
Electrical Equipment	1.7
Semiconductors & Semiconductor Equipment	1.7
Commercial Services & Supplies	1.6
Food & Staples Retailing	1.6
Beverages	1.5
Aerospace & Defense	1.5
Money Market Fund Plus Other Assets Less Liabilities	(0.0)

12

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

Top Ten Fund Holdings (% of the Fund’s Net Assets) as of April 30, 2015
Security
Vector Group Ltd.	3.6
ONEOK, Inc.	3.0
AT&T, Inc.	3.0
Helmerich & Payne, Inc.	2.6
ConocoPhillips	2.5
Mercury General Corp.	2.5
Verizon Communications, Inc.	2.5
People’s United Financial, Inc.	2.4
Universal Corp.	2.3
Chevron Corp.	2.3
Total	26.7

13

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

Growth of a $10,000 Investment

Fund Performance History as of April 30, 2015

	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			10 Years Average Annualized			10 Years Cumulative			Fund Inception†
Index																						Average Annualized			Cumulative
NASDAQ US Dividend Achievers™ 50 Index		13.46	%		17.79	%		63.43	%		14.73	%		98.78	%		3.99	%		47.95	%		3.72	%		46.22	%
Dow Jones U.S. Select Dividend Index		8.42			15.56			54.32			14.85			99.81			7.26			101.50			7.08			103.67
Fund
NAV Return		12.89			17.18			60.89			14.09			93.33			3.56			41.85			3.28			39.79
Market Price Return		12.89			17.18			60.89			14.09			93.31			3.56			41.92			3.28			39.88

Fund Inception: December 9, 2004

Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2016. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.55%. The Financial Highlights section of the Shareholders Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund

at NAV and Market 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 and Benchmark 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 and Benchmark Index do 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.

^†  Fund, Index and Benchmark Index returns are based on the inception date of the Fund.

14

PID	Manager’s Analysis
	PowerShares International Dividend Achievers™ Portfolio (PID)

As an index fund, the PowerShares International Dividend Achievers^TM Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the NASDAQ International Dividend Achievers^TM Index (the “Index”). The Fund generally will invest at least 90% of its total assets in the securities that comprise the Index.

NASDAQ OMX Group, Inc. (the “Index Provider”) compiles, maintains and calculates the Index. The Index is designed to track the performance of dividend paying American Depositary Receipts (“ADRs”) and Global Depositary Receipts (“GDRs”) that are listed on the London Stock Exchange (“LSE”) and the London International Exchange, in addition to ADRs and non-US common or ordinary stock trading on the NYSE, NYSE MKT, or NASDAQ. In order to become eligible for inclusion in the Index, an issuer must (i) be listed on NASDAQ, NYSE or NYSE MKT; (ii) be incorporated outside of the U.S.; (iii) have raised its annual regular cash dividend payments for at least each of the last five consecutive years; and (iv) have a minimum three-month average daily trading volume of $1 million. Strictly in accordance with its existing guidelines and mandated procedures, the Index Provider calculates the total annual regular dividend payment using the last available ex-dividend date for the previous calendar or fiscal year. The Index Provider will rebalance the Index on a quarterly basis using a dividend yield weighted methodology that incorporates the trailing 12-month dividend yield of each issuer as compared to the dividend yield of all issuers in the Index as of the last trading day in February, May, August and November. At the rebalance date, no single issuer may exceed 4% of the Index, and the Index Provider will redistribute the excess amounts proportionately from larger issuers until no issuer’s weight exceeds 4% of the Index. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2015, on a market price basis, the Fund returned 1.77%. On a net asset value (“NAV”) basis, the Fund returned 1.83%. During the same time period, the Index returned 2.34%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period.

During this same time period, the MSCI EAFE^® Index (the “Benchmark Index”) returned 1.66%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 910 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of a broad-based market benchmark. The Benchmark Index also was selected for its recognition in the marketplace, and its performance comparison is a useful measure

for investors as a broad representation of the overall international developed equity markets.

The performance of the Fund differed from the Benchmark Index in part because the Fund tracks the Index, which employs a dividend yield weighting and stock selection methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization.

Relative to the Benchmark Index, the Fund was most overweight in the energy sector and most underweight in the financials sector during the fiscal year ended April 30, 2015. The majority of the Fund’s outperformance relative to the Benchmark Index during that period can be attributed to stock selection within the telecommunications services and financials sectors.

For the fiscal year ended April 30, 2015, the telecommunication services sector contributed most significantly to the Fund’s return, followed by the financials and health care sectors, respectively. The industrials sector detracted most significantly from the Fund’s return, followed by the energy and materials sectors, respectively.

Positions that contributed most significantly to the Fund’s return included Ensco PLC, Class A, an energy company (portfolio average weight of 0.42%), and China Mobile Ltd. ADR, a telecommunication services company (no longer held at fiscal year-end). Positions that detracted most significantly from the Fund’s return included Navios Maritime Partners LP, an industrials company (no longer held at fiscal year-end), and Teekay Offshore Partners LP, an energy company (portfolio average weight of 3.24%).

Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2015
Energy	34.7
Financials	15.1
Consumer Discretionary	9.6
Telecommunication Services	9.3
Consumer Staples	7.4
Health Care	7.1
Industrials	6.4
Materials	6.1
Information Technology	2.8
Utilities	1.5
Money Market Fund Plus Other Assets Less Liabilities	(0.0)

15

PowerShares International Dividend Achievers™ Portfolio (PID) (continued)

Top Ten Fund Holdings (% of the Fund’s Net Assets) as of April 30, 2015
Security
Ensco PLC, Class A	4.4
Statoil ASA ADR	4.2
KazMunaiGas Exploration Production JSC GDR	3.9
Teekay Offshore Partners LP	3.8
Rosneft Oil Co. OAO GDR	3.4
Teekay LNG Partners LP	2.8
HSBC Holdings PLC ADR	2.2
Sasol Ltd. ADR	2.1
LUKOIL OAO ADR	2.0
Textainer Group Holdings Ltd.	2.0
Total	30.8

16

PowerShares International Dividend Achievers™ Portfolio (PID) (continued)

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

Fund Performance History as of April 30, 2015

	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			Fund Inception†
Index																Average Annualized			Cumulative
NASDAQ International Dividend Achievers™ Index		2.34	%		10.04	%		33.24	%		9.23	%		55.50	%		6.10	%		76.75	%
MSCI EAFE® Index-NR		1.66			11.22			37.57			7.40			42.93			4.79			56.85
Fund
NAV Return		1.83			9.50			31.28			8.55			50.68			5.39			65.67
Market Price Return		1.77			9.47			31.17			8.55			50.74			5.39			65.72

Fund Inception: September 15, 2005

Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2016. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.54%. The Financial Highlights section of the Shareholders Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market 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 and Benchmark Indices 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 and Benchmark Indices do 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.

^†  Fund, Index and Benchmark Indices returns are based on the inception date of the Fund.

NR — Net Return, and is total return net of withholding taxes

17

Schedule of Investments^(a)

PowerShares BuyBack Achievers™ Portfolio (PKW)

April 30, 2015

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—30.0%
	91,785	Abercrombie & Fitch Co., Class A	$	2,063,327
	149,893	AutoNation, Inc.(b)		9,225,914
	41,867	AutoZone, Inc.(b)		28,162,256
	244,945	Bed Bath & Beyond, Inc.(b)		17,258,825
	71,176	Big Lots, Inc.		3,243,490
	34,665	BJ’s Restaurants, Inc.(b)		1,622,322
	15,669	Blue Nile, Inc.(b)		426,353
	31,204	Bob Evans Farms, Inc.		1,342,396
	60,016	Bridgepoint Education, Inc.(b)		526,340
	83,300	Brinker International, Inc.		4,612,321
	606,358	CBS Corp., Class B		37,673,022
	65,923	Cheesecake Factory, Inc. (The)		3,304,720
	76,633	Cooper Tire & Rubber Co.		3,256,136
	102,735	Crocs, Inc.(b)		1,356,102
	111,985	Denny’s Corp.(b)		1,165,764
	49,085	Dillard’s, Inc., Class A		6,459,095
	196,166	Discovery Communications, Inc., Class A(b)		6,347,932
	400,429	Dollar General Corp.		29,115,193
	66,487	Fossil Group, Inc.(b)		5,583,578
	142,227	GameStop Corp., Class A(c)		5,481,429
	552,669	Gap, Inc. (The)		21,907,799
	115,958	GNC Holdings, Inc., Class A		4,991,992
	6,406	Graham Holdings Co., Class B		6,552,890
	37,518	Helen of Troy Ltd.(b)		3,286,952
	36,510	hhgregg, Inc.(b)(c)		208,837
	1,322,395	Home Depot, Inc. (The)		141,469,817
	63,167	Iconix Brand Group, Inc.(b)		1,661,924
	50,241	Jack in the Box, Inc.		4,359,412
	50,694	K12, Inc.(b)		819,722
	267,646	Kohl’s Corp.		19,176,836
	587,963	Liberty Interactive Corp., Class A(b)		16,909,816
	51,490	Life Time Fitness, Inc.(b)		3,681,535
	1,256,002	Lowe’s Cos., Inc.		86,488,298
	450,822	Macy’s, Inc.		29,136,626
	364,964	Marriott International, Inc., Class A		29,215,368
	42,419	Marriott Vacations Worldwide Corp.		3,487,266
	7,405	NACCO Industries, Inc., Class A		362,697
	354,980	Newell Rubbermaid, Inc.		13,535,387
	5,361	NVR, Inc.(b)		7,111,313
	134,351	O’Reilly Automotive, Inc.(b)		29,265,678
	25,032	Outerwall, Inc.(c)		1,662,876
	52,633	Papa John’s International, Inc.		3,230,087
	118,786	Pier 1 Imports, Inc.(c)		1,502,643
	57,630	Pool Corp.		3,739,611
	208,972	Sally Beauty Holdings, Inc.(b)		6,522,016
	124,118	Scripps Networks Interactive, Inc., Class A		8,670,883
	7,366,043	Sirius XM Holdings, Inc.(b)		29,095,870
	70,630	Sonic Corp.		2,023,549
	226,589	Starwood Hotels & Resorts Worldwide, Inc.		19,475,325
	121,151	Starz, Class A(b)		4,764,869
	17,208	Steiner Leisure Ltd.(b)		830,114
	84,030	Steven Madden Ltd.(b)		3,278,851
	1,096,072	Time Warner, Inc.		92,519,437
	1,752,110	Twenty-First Century Fox, Inc., Class A		59,711,909
	172,230	Urban Outfitters, Inc.(b)		6,896,089
	468,711	Viacom, Inc., Class B		32,551,979

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Discretionary (continued)
	58,648	Visteon Corp.(b)	$	5,946,907
	485,173	Wendy’s Co. (The)		4,909,951
	159,105	Wyndham Worldwide Corp.		13,587,567
				892,777,213
		Consumer Staples—1.1%
	307,460	Coca-Cola Enterprises, Inc.		13,654,299
	105,834	Coty, Inc., Class A(b)		2,530,491
	121,584	Herbalife Ltd.(b)(c)		5,048,168
	17,905	Ingles Markets, Inc., Class A		749,503
	94,368	Ingredion, Inc.		7,492,819
	16,022	Medifast, Inc.(b)		480,660
	16,706	USANA Health Sciences, Inc.(b)		1,900,140
				31,856,080
		Energy—6.1%
	497,309	Apache Corp.		34,015,936
	254,529	Cameron International Corp.(b)		13,953,280
	377,228	Hess Corp.		29,008,833
	360,270	Marathon Petroleum Corp.		35,511,814
	15,948	Mitcham Industries, Inc.(b)		78,145
	234,869	Murphy Oil Corp.		11,182,113
	715,730	Phillips 66		56,764,546
	23,946	SEACOR Holdings, Inc.(b)		1,739,916
	101,107	Triangle Petroleum Corp.(b)(c)		603,609
				182,858,192
		Financials—11.3%
	549,574	Allstate Corp. (The)		38,283,325
	465,589	American Capital Agency Corp. REIT		9,607,429
	240,604	Ameriprise Financial, Inc.		30,142,869
	140,234	Anworth Mortgage Asset Corp. REIT		712,389
	82,153	Aspen Insurance Holdings Ltd.		3,839,010
	200,732	Associated Banc-Corp.		3,775,769
	203,785	Assured Guaranty Ltd.		5,296,372
	133,081	Axis Capital Holdings Ltd.		6,928,197
	39,856	Capital Bank Financial Corp., Class A(b)		1,080,895
	45,923	Central Pacific Financial Corp.		1,051,637
	304,230	Chubb Corp. (The)		29,921,020
	232,268	CIT Group, Inc.		10,459,028
	263,913	CNO Financial Group, Inc.		4,486,521
	27,183	Credit Acceptance Corp.(b)		6,420,625
	58,693	Everest Re Group Ltd.		10,500,765
	11,040	FBR & Co.(b)		236,918
	1,075,861	Fifth Third Bancorp		21,517,220
	275,238	Fortress Investment Group LLC, Class A		2,234,932
	162,496	Invesco Mortgage Capital, Inc. REIT(d)		2,502,438
	15,817	JAVELIN Mortgage Investment Corp. REIT(c)		122,740
	68,404	Kemper Corp.		2,576,779
	148,677	Legg Mason, Inc.		7,827,844
	48,951	MCG Capital Corp.(c)		217,342
	57,804	Montpelier Re Holdings Ltd. (Bermuda)		2,202,910
	148,341	MSCI, Inc.		9,076,986
	48,159	National Bank Holdings Corp., Class A		915,021
	62,892	Northfield Bancorp, Inc.		907,532
	166,043	Ocwen Financial Corp.(b)(c)		1,409,705

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

18

PowerShares BuyBack Achievers™ Portfolio (PKW) (continued)

April 30, 2015

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	62,566	PartnerRe Ltd.	$	8,008,448
	67,566	PHH Corp.(b)		1,697,258
	73,661	ProAssurance Corp.		3,311,062
	60,397	RenaissanceRe Holdings Ltd.		6,190,088
	167,826	Torchmark Corp.		9,416,717
	424,123	Travelers Cos., Inc. (The)		42,883,076
	114,099	Validus Holdings Ltd.		4,772,761
	301,284	Voya Financial, Inc.		12,756,365
	166,037	W.R. Berkley Corp.		8,134,153
	38,191	Walker & Dunlop, Inc.(b)		730,976
	684,584	Weyerhaeuser Co. REIT		21,571,242
	12,579	World Acceptance Corp.(b)(c)		1,064,435
				334,790,799
		Health Care—7.4%
	352,090	Anthem, Inc.		53,140,944
	341,177	Cigna Corp.		42,524,301
	961,816	Express Scripts Holding Co.(b)		83,100,903
	61,820	IDEXX Laboratories, Inc.(b)		7,750,373
	69,436	Masimo Corp.(b)		2,344,159
	173,264	Select Medical Holdings Corp.		2,520,991
	17,077	SurModics, Inc.(b)		430,682
	61,586	United Therapeutics Corp.(b)		9,834,668
	106,652	Universal American Corp.(b)		1,065,454
	132,069	Varian Medical Systems, Inc.(b)		11,734,331
	109,429	VCA, Inc.(b)		5,577,596
				220,024,402
		Industrials—16.0%
	81,400	Actuant Corp., Class A		1,938,948
	225,876	ADT Corp. (The)(c)		8,492,937
	116,721	AGCO Corp.		6,012,299
	14,956	Alamo Group, Inc.		923,982
	22,979	Allegiant Travel Co.		3,533,251
	923,609	Boeing Co. (The)		132,390,114
	27,435	CAI International, Inc.(b)		653,502
	12,149	CRA International, Inc.(b)		354,751
	448,046	Deere & Co.		40,557,124
	180,205	Donaldson Co., Inc.		6,734,261
	47,552	Dun & Bradstreet Corp. (The)		6,070,964
	253,063	Expeditors International of Washington, Inc.		11,597,877
	374,485	FedEx Corp.		63,501,421
	210,129	Fortune Brands Home & Security, Inc.		9,371,753
	435,756	General Dynamics Corp.		59,838,014
	22,641	GP Strategies Corp.(b)		737,870
	69,197	Griffon Corp.		1,163,201
	492,689	Illinois Tool Works, Inc.		46,105,837
	39,108	Kforce, Inc.		889,316
	15,583	Lindsay Corp.(c)		1,234,018
	47,926	Moog, Inc., Class A(b)		3,349,069
	261,844	Northrop Grumman Corp.		40,334,450
	103,125	Oshkosh Corp.		5,552,250
	9,814	P.A.M. Transportation Services, Inc.(b)		575,002
	54,094	SPX Corp.		4,165,238
	115,768	Timken Co. (The)		4,548,525
	31,472	Valmont Industries, Inc.(c)		3,966,101
	77,151	WABCO Holdings, Inc.(b)		9,601,442
				474,193,517

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology—20.5%
	70,527	ADTRAN, Inc.	$	1,171,453
	397,222	Altera Corp.		16,556,213
	1,207,420	Apple, Inc.		151,108,613
	27,139	CEVA, Inc.(b)		561,777
	210,928	Citrix Systems, Inc.(b)		14,165,925
	1,674,483	Corning, Inc.		35,046,929
	72,168	DHI Group, Inc.(b)		548,477
	32,146	Digi International, Inc.(b)		324,675
	49,034	DST Systems, Inc.		5,642,833
	94,906	Emulex Corp.(b)		761,146
	9,753	ePlus, Inc.(b)		809,109
	41,474	Fair Isaac Corp.		3,668,790
	154,529	Fairchild Semiconductor International, Inc.(b)		2,807,019
	315,012	Fiserv, Inc.(b)		24,444,931
	23,825	Forrester Research, Inc.		828,872
	290,442	Genpact Ltd.(b)		6,349,062
	88,501	Global Payments, Inc.		8,874,880
	116,976	Harmonic, Inc.(b)		820,002
	49,010	InterDigital, Inc.		2,681,827
	936,058	International Business Machines Corp.		160,337,375
	537,131	Juniper Networks, Inc.		14,196,372
	97,825	Leidos Holdings, Inc.		4,073,433
	39,564	Liquidity Services, Inc.(b)		370,319
	70,195	MoneyGram International, Inc.(b)		544,011
	119,855	Monster Worldwide, Inc.(b)		705,946
	278,825	Motorola Solutions, Inc.		16,659,794
	411,439	NetApp, Inc.		14,914,664
	45,814	NETGEAR, Inc.(b)		1,386,790
	73,525	NeuStar, Inc., Class A(b)(c)		2,205,750
	177,084	Polycom, Inc.(b)		2,310,946
	121,336	Rovi Corp.(b)		2,245,929
	60,196	Science Applications International Corp.		3,015,820
	65,237	Sonus Networks, Inc.(b)		516,677
	111,345	Take-Two Interactive Software, Inc.(b)		2,638,877
	191,560	Teradata Corp.(b)		8,426,724
	126,022	TiVo, Inc.(b)		1,392,543
	154,257	VeriSign, Inc.(b)		9,796,862
	49,109	WebMD Health Corp.(b)		2,168,162
	688,171	Western Union Co. (The)		13,956,108
	1,467,813	Xerox Corp.		16,879,850
	1,235,435	Yahoo!, Inc.(b)		52,586,291
	75,205	Zix Corp.(b)		320,373
				608,822,149
		Materials—7.2%
	6,708	AEP Industries, Inc.(b)		336,071
	91,411	Ashland, Inc.		11,550,694
	119,392	Avery Dennison Corp.		6,637,001
	181,472	Ball Corp.		13,321,860
	63,226	CF Industries Holdings, Inc.		18,175,578
	91,477	Chemtura Corp.(b)		2,756,202
	25,343	Clearwater Paper Corp.(b)		1,621,192
	434,346	Graphic Packaging Holding Co.		6,124,279
	14,221	Handy & Harman Ltd.(b)		503,850
	23,049	Kaiser Aluminum Corp.		1,852,448
	220,978	MeadWestvaco Corp.		10,783,726
	638,229	Monsanto Co.		72,732,577

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

19

PowerShares BuyBack Achievers™ Portfolio (PKW) (continued)

April 30, 2015

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Materials (continued)
	472,577	Mosaic Co. (The)	$	20,793,388
	40,840	Myers Industries, Inc.		660,383
	16,422	NewMarket Corp.		7,338,992
	117,589	PolyOne Corp.		4,591,850
	125,466	Sherwin-Williams Co. (The)		34,879,548
				214,659,639
		Utilities—0.4%
	495,314	Calpine Corp.(b)		10,802,798
		Total Common Stocks and Other Equity Interests (Cost $2,707,919,326)		2,970,784,789
		Money Market Fund—0.1%
	2,595,488	Invesco Premier Portfolio—Institutional Class(e) (Cost $2,595,488)		2,595,488
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $2,710,514,814)—100.1%		2,973,380,277
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—0.7%
	20,859,298	Invesco Liquid Assets Portfolio—Institutional Class(e)(f) (Cost $20,859,298)		20,859,298
		Total Investments (Cost $2,731,374,112)—100.8%		2,994,239,575
		Other assets less liabilities—(0.8)%		(23,315,455	)
		Net Assets—100.0%	$	2,970,924,120

Investment Abbreviations:

REIT—Real Estate Investment Trust

Notes to Schedule of Investments:

^(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.

^(b)  Non-income producing security.

^(c)  All or a portion of this security was out on loan at April 30, 2015.

^(d)  Affiliated company. The Fund’s Adviser and Invesco Mortgage Capital, Inc. REIT are wholly-owned subsidiaries of Invesco Ltd., and therefore, Invesco Ltd. and Invesco Mortgage Capital, Inc. REIT are considered to be affiliated. See Note 4.

^(e)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated.

^(f)  The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2G. The following table presents the Fund’s gross and net amount of assets available for offset by the Fund as of April 30, 2015.

Counterparty	Gross Amount of Securities on Loan at Value		Cash Collateral Received for Securities Loaned*			Net Amount
Brown Brothers Harriman & Co.	$	20,265,102	$	(20,265,102	)	$	—

* Amount does not include excess collateral received, if any.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

20

Schedule of Investments^(a)

PowerShares Dividend Achievers™ Portfolio (PFM)

April 30, 2015

Number of Shares			Value
		Common Stocks and Other Equity Interests—99.9%
		Consumer Discretionary—7.6%
	3,755	Aaron’s, Inc.	$	127,670
	18,181	Best Buy Co., Inc.		629,972
	1,237	Cracker Barrel Old Country Store, Inc.		163,878
	6,431	Darden Restaurants, Inc.		410,105
	21,958	Gap, Inc. (The)		870,415
	7,913	Genuine Parts Co.		710,983
	6,444	Hasbro, Inc.		456,171
	2,556	John Wiley & Sons, Inc., Class A		145,385
	7,175	Leggett & Platt, Inc.		304,722
	49,760	Lowe’s Cos., Inc.		3,426,474
	49,819	McDonald’s Corp.		4,810,025
	1,928	Meredith Corp.		100,333
	296	NACCO Industries, Inc., Class A		14,498
	35,577	NIKE, Inc., Class B		3,516,431
	3,435	Polaris Industries, Inc.		470,458
	10,805	Ross Stores, Inc.		1,068,398
	33,187	Target Corp.		2,616,131
	6,705	Tiffany & Co.		586,553
	35,710	TJX Cos., Inc. (The)		2,304,723
	22,387	VF Corp.		1,621,490
	22,453	Yum! Brands, Inc.		1,930,060
				26,284,875
		Consumer Staples—22.6%
	102,083	Altria Group, Inc.		5,109,254
	1,493	Andersons, Inc. (The)		63,736
	32,880	Archer-Daniels-Midland Co.		1,607,174
	6,584	Brown-Forman Corp., Class B		594,074
	7,531	Bunge Ltd.		650,453
	2,007	Casey’s General Stores, Inc.		164,935
	6,770	Church & Dwight Co., Inc.		549,521
	6,802	Clorox Co. (The)		721,692
	226,324	Coca-Cola Co. (The)		9,179,702
	47,020	Colgate-Palmolive Co.		3,163,506
	22,838	Costco Wholesale Corp.		3,266,976
	58,330	CVS Health Corp.		5,791,586
	10,854	Flowers Foods, Inc.		242,478
	31,297	General Mills, Inc.		1,731,976
	13,672	Hormel Foods Corp.		743,073
	967	J&J Snack Foods Corp.		100,887
	5,279	J.M. Smucker Co. (The)		611,942
	18,486	Kellogg Co.		1,170,718
	18,947	Kimberly-Clark Corp.		2,078,296
	1,419	Lancaster Colony Corp.		127,228
	6,028	McCormick & Co., Inc.		453,908
	3,070	Nu Skin Enterprises, Inc., Class A		173,609
	76,839	PepsiCo, Inc.		7,308,926
	139,984	Procter & Gamble Co. (The)		11,130,128
	27,541	Reynolds American, Inc.		2,018,755
	30,707	Sysco Corp.		1,137,080
	1,987	Tootsie Roll Industries, Inc., Class A		61,557
	1,167	Universal Corp.		54,884
	5,940	Vector Group Ltd.		131,571
	56,497	Walgreens Boots Alliance, Inc.		4,685,296
	166,509	Wal-Mart Stores, Inc.		12,996,028
				77,820,949

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Energy—13.3%
	3,846	Alliance Resource Partners LP	$	132,572
	6,598	Buckeye Partners LP		538,265
	1,202	CARBO Ceramics, Inc.		53,165
	97,460	Chevron Corp.		10,823,908
	63,836	ConocoPhillips		4,335,741
	100,302	Enterprise Products Partners LP		3,435,344
	28,431	EOG Resources, Inc.		2,813,247
	157,839	Exxon Mobil Corp.		13,790,393
	4,927	Genesis Energy LP		244,921
	5,584	Helmerich & Payne, Inc.		435,385
	3,045	Holly Energy Partners LP		100,333
	11,788	Magellan Midstream Partners LP		984,298
	9,199	Murphy Oil Corp.		437,964
	39,943	Occidental Petroleum Corp.		3,199,434
	10,801	ONEOK, Inc.		519,528
	20,595	Plains All American Pipeline LP		1,032,015
	11,903	Sunoco Logistics Partners LP		528,017
	3,298	TC Pipelines LP		224,528
	38,765	Williams Cos., Inc. (The)		1,984,380
				45,613,438
		Financials—6.1%
	16,966	ACE Ltd.		1,815,192
	22,752	Aflac, Inc.		1,434,286
	3,989	American Equity Investment Life Holding Co.		107,504
	3,571	Assurant, Inc.		219,474
	5,230	Axis Capital Holdings Ltd.		272,274
	807	BancFirst Corp.		46,580
	4,498	Bank of the Ozarks, Inc.		174,342
	7,440	Brown & Brown, Inc.		237,708
	11,971	Chubb Corp. (The)		1,177,348
	8,512	Cincinnati Financial Corp.		431,048
	4,996	Commerce Bancshares, Inc.		213,379
	2,105	Community Bank System, Inc.		73,570
	902	Community Trust Bancorp, Inc.		28,936
	3,276	Cullen/Frost Bankers, Inc.		238,951
	7,030	Digital Realty Trust, Inc. REIT		445,772
	6,115	Eaton Vance Corp.		251,204
	4,364	Equity Lifestyle Properties, Inc. REIT		230,506
	2,399	Erie Indemnity Co., Class A		198,517
	3,318	Essex Property Trust, Inc. REIT		736,430
	3,560	Federal Realty Investment Trust REIT		475,865
	669	First Financial Corp.		22,713
	32,234	Franklin Resources, Inc.		1,661,985
	4,988	HCC Insurance Holdings, Inc.		284,116
	23,885	HCP, Inc. REIT		962,327
	18,057	Health Care REIT, Inc. REIT		1,300,465
	592	Infinity Property & Casualty Corp.		43,897
	22,255	Invesco Ltd.(b)		921,802
	14,180	McGraw Hill Financial, Inc.		1,478,974
	2,857	Mercury General Corp.		156,964
	1,945	National Health Investors, Inc. REIT		129,770
	6,873	National Retail Properties, Inc. REIT		263,923
	13,526	Old Republic International Corp.		206,813
	7,190	OMEGA Healthcare Investors, Inc. REIT		259,487
	15,564	People’s United Financial, Inc.		235,172
	3,620	Prosperity Bancshares, Inc.		193,091

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

21

PowerShares Dividend Achievers™ Portfolio (PFM) (continued)

April 30, 2015

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	11,670	Realty Income Corp. REIT	$	548,140
	2,394	RenaissanceRe Holdings Ltd.		245,361
	2,232	RLI Corp.		110,841
	8,648	SEI Investments Co.		394,868
	1,309	Southside Bancshares, Inc.		35,762
	2,179	StanCorp Financial Group, Inc.		157,062
	13,518	T. Rowe Price Group, Inc.		1,097,391
	4,955	Tanger Factory Outlet Centers, Inc. REIT		166,389
	770	Tompkins Financial Corp.		40,156
	2,371	UMB Financial Corp.		118,052
	3,594	United Bankshares, Inc.		135,063
	690	Universal Health Realty Income Trust REIT		34,265
	1,378	Urstadt Biddle Properties, Inc., Class A REIT		28,594
	6,525	W.R. Berkley Corp.		319,660
	1,334	Westamerica Bancorp.		58,096
	438	Westwood Holdings Group, Inc.		25,662
	5,392	W.P. Carey, Inc. REIT		342,284
				20,788,031
		Health Care—9.0%
	78,220	Abbott Laboratories		3,630,972
	11,389	AmerisourceBergen Corp.		1,301,763
	10,004	Becton, Dickinson and Co.		1,409,263
	3,850	C.R. Bard, Inc.		641,333
	17,114	Cardinal Health, Inc.		1,443,395
	136,329	Johnson & Johnson		13,523,837
	73,867	Medtronic PLC		5,499,398
	3,271	Owens & Minor, Inc.		110,298
	7,297	Perrigo Co. PLC		1,337,394
	19,637	Stryker Corp.		1,811,317
	3,702	West Pharmaceutical Services, Inc.		197,243
				30,906,213
		Industrials—13.8%
	32,904	3M Co.		5,145,857
	3,954	A.O. Smith Corp.		252,661
	2,897	ABM Industries, Inc.		92,849
	2,473	Brady Corp., Class A		65,856
	7,589	C.H. Robinson Worldwide, Inc.		488,656
	3,374	Carlisle Cos., Inc.		325,591
	31,419	Caterpillar, Inc.		2,729,683
	6,082	Cintas Corp.		486,256
	2,604	CLARCOR, Inc.		169,260
	3,020	Crane Co.		184,552
	51,344	CSX Corp.		1,853,005
	17,599	Deere & Co.		1,593,061
	7,120	Donaldson Co., Inc.		266,074
	8,456	Dover Corp.		640,288
	35,520	Emerson Electric Co.		2,089,642
	9,940	Expeditors International of Washington, Inc.		455,550
	15,316	Fastenal Co.		652,768
	14,685	FedEx Corp.		2,490,135
	2,462	Franklin Electric Co., Inc.		89,026
	17,201	General Dynamics Corp.		2,362,041
	1,361	Gorman-Rupp Co. (The)		36,897
	3,054	Graco, Inc.		218,727
	3,699	Healthcare Services Group, Inc.		111,969

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrials (continued)
	19,674	Illinois Tool Works, Inc.	$	1,841,093
	4,715	ITT Corp.		186,950
	6,039	J.B. Hunt Transport Services, Inc.		526,601
	4,281	L-3 Communications Holdings, Inc.		491,930
	3,996	Lincoln Electric Holdings, Inc.		267,172
	621	Lindsay Corp.		49,177
	16,360	Lockheed Martin Corp.		3,052,776
	1,710	Matthews International Corp., Class A		82,986
	1,350	McGrath RentCorp		44,698
	1,939	MSA Safety, Inc.		88,690
	2,517	MSC Industrial Direct Co., Inc., Class A		178,858
	3,192	Nordson Corp.		254,243
	15,934	Norfolk Southern Corp.		1,606,944
	10,286	Northrop Grumman Corp.		1,584,455
	5,531	Pall Corp.		538,277
	7,386	Parker Hannifin Corp.		881,593
	1,970	Raven Industries, Inc.		39,282
	15,929	Raytheon Co.		1,656,616
	2,315	Regal Beloit Corp.		181,033
	18,304	Republic Services, Inc.		743,691
	7,004	Robert Half International, Inc.		388,372
	11,339	Rollins, Inc.		281,207
	5,205	Roper Technologies, Inc.		875,325
	2,743	Ryder System, Inc.		261,572
	8,164	Stanley Black & Decker, Inc.		805,787
	953	Tennant Co.		61,268
	2,903	Toro Co. (The)		194,617
	47,024	United Technologies Corp.		5,348,980
	1,241	Valmont Industries, Inc.		156,391
	276	VSE Corp.		19,635
	3,495	W.W. Grainger, Inc.		868,263
	23,803	Waste Management, Inc.		1,178,963
				47,537,849
		Information Technology—11.5%
	16,158	Analog Devices, Inc.		999,211
	24,630	Automatic Data Processing, Inc.		2,082,220
	751	Badger Meter, Inc.		46,727
	595	Cass Information Systems, Inc.		31,101
	2,156	FactSet Research Systems, Inc.		339,333
	5,396	Harris Corp.		432,975
	51,237	International Business Machines Corp.		8,776,386
	4,241	Jack Henry & Associates, Inc.		282,069
	12,397	Linear Technology Corp.		571,874
	14,662	Maxim Integrated Products, Inc.		481,353
	179	Mesa Laboratories, Inc.		15,195
	10,445	Microchip Technology, Inc.		497,756
	318,704	Microsoft Corp.		15,501,763
	85,505	QUALCOMM, Inc.		5,814,340
	54,278	Texas Instruments, Inc.		2,942,410
	13,555	Xilinx, Inc.		587,745
				39,402,458
		Materials—4.5%
	11,105	Air Products & Chemicals, Inc.		1,592,790
	3,895	Airgas, Inc.		394,486
	5,815	Albemarle Corp.		347,155

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

22

PowerShares Dividend Achievers™ Portfolio (PFM) (continued)

April 30, 2015

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Materials (continued)
	3,232	AptarGroup, Inc.	$	200,610
	5,050	Bemis Co., Inc.		227,250
	1,743	Compass Minerals International, Inc.		153,959
	15,514	Ecolab, Inc.		1,737,258
	2,611	H.B. Fuller Co.		109,061
	4,198	International Flavors & Fragrances, Inc.		481,721
	25,067	Monsanto Co.		2,856,635
	16,540	Nucor Corp.		808,144
	7,053	PPG Industries, Inc.		1,562,663
	14,968	Praxair, Inc.		1,825,048
	3,364	Royal Gold, Inc.		217,079
	6,930	RPM International, Inc.		329,452
	4,922	Sherwin-Williams Co. (The)		1,368,316
	3,279	Silgan Holdings, Inc.		176,640
	5,253	Sonoco Products Co.		234,757
	1,148	Stepan Co.		58,468
	4,249	Valspar Corp. (The)		344,594
	6,892	Westlake Chemical Corp.		537,438
				15,563,524
		Telecommunication Services—5.9%
	269,038	AT&T, Inc.		9,319,476
	820	Atlantic Tele-Network, Inc.		54,137
	5,224	Telephone & Data Systems, Inc.		139,533
	215,396	Verizon Communications, Inc.		10,864,574
				20,377,720
		Utilities—5.6%
	6,206	AGL Resources, Inc.		311,976
	5,750	Alliant Energy Corp.		347,703
	1,980	American States Water Co.		76,012
	4,816	AmeriGas Partners LP		234,684
	9,172	Aqua America, Inc.		245,993
	5,231	Atmos Energy Corp.		282,474
	3,233	Avista Corp.		105,461
	2,314	Black Hills Corp.		114,057
	2,476	California Water Service Group		59,102
	758	Chesapeake Utilities Corp.		36,217
	15,183	Consolidated Edison, Inc.		934,514
	30,485	Dominion Resources, Inc.		2,185,165
	36,647	Duke Energy Corp.		2,842,708
	16,890	Edison International		1,029,277
	16,443	Eversource Energy		801,761
	2,241	Laclede Group, Inc. (The)		116,375
	10,083	MDU Resources Group, Inc.		224,750
	1,791	MGE Energy, Inc.		74,291
	4,365	National Fuel Gas Co.		281,324
	4,426	New Jersey Resources Corp.		135,037
	22,992	NextEra Energy, Inc.		2,320,583
	1,417	Northwest Natural Gas Co.		66,174
	4,075	Piedmont Natural Gas Co., Inc.		152,568
	34,576	PPL Corp.		1,176,621
	9,101	Questar Corp.		213,327
	7,410	SCANA Corp.		392,582
	1,055	SJW Corp.		30,859
	1,772	South Jersey Industries, Inc.		93,473
	47,121	Southern Co. (The)		2,087,460

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Utilities (continued)
	8,957	UGI Corp.	$	311,793
	4,285	Vectren Corp.		184,983
	6,853	Westar Energy, Inc.		258,015
	2,578	WGL Holdings, Inc.		141,816
	11,694	Wisconsin Energy Corp.		574,409
	26,229	Xcel Energy, Inc.		889,425
				19,332,969
		Total Investments (Cost $277,851,889)—99.9%		343,628,026
		Other assets less liabilities—0.1%		190,805
		Net Assets—100.0%	$	343,818,831

Investment Abbreviations:

REIT—Real Estate Investment Trust

Notes to Schedule of Investments:

^(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.

^(b)  Affiliated company. The Fund’s Adviser is a wholly-owned subsidiary of Invesco Ltd. and therefore, Invesco Ltd. is considered to be affiliated. See Note 4.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

23

Schedule of Investments^(a)

PowerShares Financial Preferred Portfolio (PGF)

April 30, 2015

Number of Shares			Value
		Preferred Stocks and Other Equity Interests—100.4%
		Banks—71.7%
	555,838	Bank of America Corp.,
		6.20%, Series D(b)	$	14,229,453
	76,281	Bank of America Corp.,
		6.38%, Series 3		1,955,082
	843,209	Bank of America Corp.,
		6.50%, Series Y		21,754,792
	951,121	Bank of America Corp.,
		6.63%, Series W		24,710,124
	739,440	Barclays Bank PLC,
		6.63%, Series 2 (United Kingdom)		18,922,270
	818,798	Barclays Bank PLC,
		7.10%, Series 3 (United Kingdom)		21,190,492
	604,019	Barclays Bank PLC,
		7.75%, Series 4 (United Kingdom)		15,746,775
	2,239,137	Barclays Bank PLC,
		8.13%, Series 5 (United Kingdom)		58,531,041
	118,414	BB&T Corp.,
		5.20%, Series G		2,870,355
	1,633,159	BB&T Corp.,
		5.63%, Series E		40,355,359
	389,016	BB&T Corp.,
		5.85%		9,842,105
	683,721	Citigroup, Inc.,
		5.80%, Series C(b)		17,222,932
	1,031,489	Citigroup, Inc.,
		6.88%, Series K		28,077,131
	803,700	Citigroup, Inc.,
		7.13%, Series J(b)		22,294,638
	374,781	Fifth Third Bancorp,
		6.63%, Series I		10,542,590
	289,026	First Niagara Financial Group, Inc.,
		8.63%, Series B		7,991,569
	482,432	HSBC Finance Corp.,
		6.36%, Series B		12,215,178
	4,095,356	HSBC Holdings PLC,
		8.00%, Series 2 (United Kingdom)		107,544,049
	1,422,579	HSBC Holdings PLC,
		8.13% (United Kingdom)		37,484,957
	338,282	HSBC USA, Inc.,
		6.50%, Series H		8,619,425
	676,534	ING Groep NV,
		6.13% (Netherlands)		17,068,953
	157,941	ING Groep NV,
		6.20% (Netherlands)		3,991,169
	1,233,118	ING Groep NV,
		6.38% (Netherlands)		31,370,522
	2,185,138	ING Groep NV,
		7.38% (Netherlands)		55,895,830
	829,849	JPMorgan Chase & Co.,
		5.45%, Series P		20,289,808
	1,233,721	JPMorgan Chase & Co.,
		5.50%, Series O(b)		30,349,537
	1,101,676	JPMorgan Chase & Co.,
		6.13%, Series Y		27,795,285
	109,158	JPMorgan Chase & Co.,
		6.30%, Series W		2,818,460

Number of Shares			Value
		Preferred Stocks and Other Equity Interests (continued)
		Banks (continued)
	538,836	JPMorgan Chase & Co.,
		6.70%, Series T	$	14,467,747
	273,752	KKR Financial Holdings LLC,
		7.38%, Series A		7,112,077
	1,585,437	PNC Financial Services Group, Inc. (The),
		6.13%, Series P		44,487,362
	434,361	Regions Financial Corp.,
		6.38%, Series A		10,945,897
	403,548	Regions Financial Corp.,
		6.38%, Series B		10,572,958
	425,615	Royal Bank of Scotland Group PLC,
		5.75%, Series L (United Kingdom)		10,410,543
	72,583	Royal Bank of Scotland Group PLC,
		6.13%, Series R (United Kingdom)		1,792,074
	423,961	Royal Bank of Scotland Group PLC,
		6.35%, Series N (United Kingdom)(b)		10,603,265
	165,728	Royal Bank of Scotland Group PLC,
		6.40%, Series M (United Kingdom)		4,148,172
	365,835	Royal Bank of Scotland Group PLC,
		6.60%, Series S (United Kingdom)		9,156,850
	312,114	Royal Bank of Scotland Group PLC,
		6.75%, Series Q (United Kingdom)		7,874,636
	956,977	Royal Bank of Scotland Group PLC,
		7.25%, Series T (United Kingdom)		24,326,355
	361,070	SunTrust Banks, Inc.,
		5.88%, Series E(b)		9,048,414
	807,280	U.S. Bancorp,
		5.15%, Series H(b)		20,093,199
	412,005	U.S. Bancorp,
		6.00%, Series G		11,124,135
	1,012,302	U.S. Bancorp,
		6.50%, Series F		30,146,354
	50,646	Wells Fargo & Co.,
		5.13%, Series O(b)		1,235,762
	925,729	Wells Fargo & Co.,
		5.20%		22,615,559
	429,355	Wells Fargo & Co.,
		5.25%, Series P		10,605,068
	1,309,219	Wells Fargo & Co.,
		5.85%		34,445,552
	504,067	Wells Fargo & Co.,
		6.00%, Series T		12,888,993
	163,744	Wells Fargo & Co.,
		6.63%		4,604,481
	17,140	Wells Fargo & Co.,
		7.50%, Series L		20,889,375
	1,729,403	Wells Fargo & Co.,
		8.00%, Series J		50,100,805
				1,055,375,514
		Capital Markets—14.0%
	465,518	Bank of New York Mellon Corp. (The),
		5.20%		11,591,398
	409,099	Charles Schwab Corp. (The),
		6.00%, Series B(b)		10,845,215
	822,348	Goldman Sachs Group, Inc. (The),
		5.50%, Series J		20,427,124

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

24

PowerShares Financial Preferred Portfolio (PGF) (continued)

April 30, 2015

Number of Shares			Value
		Preferred Stocks and Other Equity Interests (continued)
		Capital Markets (continued)
	899,006	Goldman Sachs Group, Inc. (The),
		5.95%(b)	$	22,681,921
	590,391	Goldman Sachs Group, Inc. (The),
		6.20%, Series B		14,954,604
	362,075	Goldman Sachs Group, Inc. (The),
		6.38%, Series K		9,486,365
	582,142	Morgan Stanley,
		6.38%, Series I		15,193,906
	340,505	Morgan Stanley,
		6.63%, Series G		8,887,181
	751,859	Morgan Stanley,
		6.88%, Series F		20,600,937
	805,824	Morgan Stanley,
		7.13%, Series E		22,845,110
	317,063	Northern Trust Corp.,
		5.85%, Series C		8,148,519
	541,588	State Street Corp.,
		5.25%, Series C		13,409,719
	554,797	State Street Corp.,
		5.90%, Series D		14,940,683
	470,014	State Street Corp.,
		6.00%		11,985,357
				205,998,039
		Consumer Finance—4.6%
	815,743	Ally Financial, Inc.,
		8.50%, Series A		21,617,190
	775,066	Capital One Financial Corp.,
		6.00%, Series B		19,516,162
	344,986	Capital One Financial Corp.,
		6.25%, Series C		8,859,240
	245,007	Capital One Financial Corp.,
		6.70%, Series D		6,580,888
	465,387	Discover Financial Services,
		6.50%, Series B		11,988,369
				68,561,849
		Insurance—10.1%
	690,114	Aegon NV,
		6.38% (Netherlands)		17,556,500
	237,997	Aegon NV,
		6.50% (Netherlands)(b)		6,135,563
	301,785	Allstate Corp. (The),
		5.63%		7,728,714
	112,883	Allstate Corp. (The),
		6.25%, Series F		2,963,179
	615,454	Allstate Corp. (The),
		6.63%, Series E		16,666,494
	273,774	Allstate Corp. (The),
		6.75%, Series C		7,411,062
	261,706	Arch Capital Group Ltd.,
		6.75%, Series C		7,068,679
	250,553	Aspen Insurance Holdings Ltd.,
		5.95%		6,446,729
	316,557	Axis Capital Holdings Ltd.,
		6.88%, Series C		8,467,900
	1,171,743	MetLife, Inc.,
		6.50%, Series B		30,090,360

Number of Shares			Value
		Preferred Stocks and Other Equity Interests (continued)
		Insurance (continued)
	94,513	PartnerRe Ltd.,
		5.88%, Series F	$	2,377,947
	397,805	PartnerRe Ltd.,
		7.25%, Series E		10,541,832
	251,307	Principal Financial Group, Inc.,
		6.52%, Series B		6,388,224
	297,222	Prudential PLC,
		6.50% (United Kingdom)		7,686,161
	178,408	Prudential PLC,
		6.75% (United Kingdom)		4,642,176
	243,674	RenaissanceRe Holdings Ltd.,
		5.38%, Series E		5,982,197
				148,153,717
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $1,371,896,002)—100.4%		1,478,089,119
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—1.8%
	26,731,610	Invesco Liquid Assets Portfolio—Institutional Class(c)(d) (Cost $26,731,610)		26,731,610
		Total Investments (Cost $1,398,627,612)—102.2%		1,504,820,729
		Other assets less liabilities—(2.2)%		(33,104,281	)
		Net Assets—100.0%	$	1,471,716,448

Notes to Schedule of Investments:

^(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.

^(b)  All or a portion of this security was out on loan at April 30, 2015.

^(c)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated.

^(d)  The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2G. The following table presents the Fund’s gross and net amount of assets available for offset by the Fund as of April 30, 2015.

Counterparty	Gross Amount of Securities on Loan at Value		Cash Collateral Received for Securities Loaned*			Net Amount
Brown Brothers Harriman & Co.	$	25,980,614	$	(25,980,614	)	$	—

* Amount does not include excess collateral received, if any.

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

United Kingdom 23.1 % 

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

25

Schedule of Investments^(a)

PowerShares High Yield Equity Dividend Achievers™ Portfolio (PEY)

April 30, 2015

Number of Shares			Value
		Common Stocks—100.0%
		Aerospace & Defense—1.5%
	41,982	Lockheed Martin Corp.	$	7,833,841
		Banks—9.8%
	273,345	Community Bank System, Inc.		9,553,408
	131,734	Cullen/Frost Bankers, Inc.		9,608,678
	857,159	People’s United Financial, Inc.		12,951,672
	271,304	United Bankshares, Inc.		10,195,604
	243,572	Westamerica Bancorp.(b)		10,607,561
				52,916,923
		Beverages—1.5%
	193,157	Coca-Cola Co. (The)		7,834,448
		Commercial Services & Supplies—1.6%
	322,637	Brady Corp., Class A		8,591,823
		Diversified Telecommunication Services—5.4%
	460,502	AT&T, Inc.		15,951,789
	262,605	Verizon Communications, Inc.		13,245,796
				29,197,585
		Electric Utilities—8.5%
	143,535	Duke Energy Corp.		11,134,010
	358,500	PPL Corp.		12,199,755
	280,207	Southern Co. (The)		12,413,170
	259,478	Westar Energy, Inc.		9,769,347
				45,516,282
		Electrical Equipment—1.7%
	159,273	Emerson Electric Co.		9,370,031
		Energy Equipment & Services—2.6%
	177,661	Helmerich & Payne, Inc.		13,852,228
		Food & Staples Retailing—1.6%
	228,458	Sysco Corp.		8,459,800
		Food Products—3.3%
	168,254	General Mills, Inc.		9,311,176
	135,653	Kellogg Co.		8,590,905
				17,902,081
		Gas Utilities—7.7%
	229,704	AGL Resources, Inc.		11,547,220
	185,580	Laclede Group, Inc. (The)		9,637,169
	231,790	Northwest Natural Gas Co.		10,824,593
	257,366	Piedmont Natural Gas Co., Inc.		9,635,783
				41,644,765
		Hotels, Restaurants & Leisure—3.7%
	159,666	Darden Restaurants, Inc.		10,181,901
	100,911	McDonald’s Corp.		9,742,957
				19,924,858
		Household Products—3.3%
	82,941	Kimberly-Clark Corp.		9,097,798
	105,448	Procter & Gamble Co. (The)		8,384,171
				17,481,969
		Insurance—7.9%
	187,685	Cincinnati Financial Corp.		9,504,368
	101,629	Erie Indemnity Co., Class A		8,409,800
	246,187	Mercury General Corp.		13,525,514
	708,182	Old Republic International Corp.		10,828,103
				42,267,785

Number of Shares			Value
		Common Stocks (continued)
		Machinery—1.9%
	116,796	Caterpillar, Inc.	$	10,147,236
		Media—1.8%
	181,341	Meredith Corp.		9,436,986
		Metals & Mining—1.8%
	199,268	Nucor Corp.		9,736,234
		Multi-Utilities—7.5%
	308,516	Avista Corp.		10,063,792
	178,220	Consolidated Edison, Inc.		10,969,441
	426,799	MDU Resources Group, Inc.		9,513,350
	180,855	SCANA Corp.		9,581,698
				40,128,281
		Oil, Gas & Consumable Fuels—13.9%
	111,816	Chevron Corp.		12,418,285
	201,401	ConocoPhillips		13,679,156
	104,510	Exxon Mobil Corp.		9,131,039
	141,201	Occidental Petroleum Corp.		11,310,200
	332,745	ONEOK, Inc.		16,005,034
	242,003	Williams Cos., Inc. (The)		12,388,134
				74,931,848
		Personal Products—1.8%
	175,198	Nu Skin Enterprises, Inc., Class A(b)		9,907,447
		Semiconductors & Semiconductor Equipment—1.7%
	276,013	Maxim Integrated Products, Inc.		9,061,507
		Tobacco—9.5%
	187,367	Altria Group, Inc.		9,377,718
	139,319	Reynolds American, Inc.		10,212,083
	265,532	Universal Corp.		12,487,970
	863,267	Vector Group Ltd.		19,121,364
				51,199,135
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $504,489,013)—100.0%		537,343,093
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—2.0%
	10,848,215	Invesco Liquid Assets Portfolio—Institutional Class(c)(d) (Cost $10,848,215)		10,848,215
		Total Investments (Cost $515,337,228)—102.0%		548,191,308
		Other assets less liabilities—(2.0)%		(10,866,880	)
		Net Assets—100.0%	$	537,324,428

Notes to Schedule of Investments:

^(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.

^(b)  All or a portion of this security was out on loan at April 30, 2015.

^(c)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

26

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

April 30, 2015

^(d)  The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2G. The following table presents the Fund’s gross and net amount of assets available for offset by the Fund as of April 30, 2015.

Counterparty	Gross Amount of Securities on Loan at Value		Cash Collateral Received for Securities Loaned*			Net Amount
Brown Brothers Harriman & Co.	$	10,330,643	$	(10,330,643	)	$	—

* Amount does not include excess collateral received, if any.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

27

Schedule of Investments

PowerShares International Dividend Achievers™ Portfolio (PID)

April 30, 2015

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Australia—5.1%
	492,162	BHP Billiton Ltd. ADR(a)	$	25,242,989
	538,704	BHP Billiton PLC ADR(a)		26,019,403
	1,010,015	Westpac Banking Corp. ADR(a)		29,149,033
				80,411,425
		Belgium—0.9%
	113,279	Anheuser-Busch InBev NV ADR(a)		13,598,011
		Bermuda—0.7%
	280,728	Montpelier Re Holdings Ltd.		10,698,544
		Brazil—0.6%
	400,493	Ultrapar Participacoes SA ADR		9,147,260
		Canada—13.6%
	648,868	BCE, Inc.		28,621,568
	106,099	Canadian National Railway Co.		6,845,507
	535,936	Canadian Natural Resources Ltd.		17,819,872
	342,980	Enbridge, Inc.		17,948,143
	133,058	Franco-Nevada Corp.(a)		6,896,396
	176,536	Imperial Oil Ltd.		7,790,534
	143,642	Magna International, Inc.		7,243,866
	486,624	Ritchie Bros. Auctioneers, Inc.(a)		12,306,721
	738,823	Rogers Communications, Inc., Class B		26,383,369
	1,019,355	Shaw Communications, Inc., Class B(a)		23,292,262
	441,707	Suncor Energy, Inc.		14,399,648
	608,280	TELUS Corp.(a)		21,058,654
	503,857	TransCanada Corp.		23,389,042
				213,995,582
		Colombia—1.4%
	500,343	Bancolombia SA (Preference Shares) ADR(a)		22,650,528
		Denmark—0.7%
	204,283	Novo Nordisk A/S, Class B ADR		11,495,004
		France—1.4%
	448,757	Sanofi ADR		22,684,666
		Germany—0.5%
	177,979	Fresenius Medical Care AG & Co. KGaA (Preference Shares) ADR(a)		7,469,779
		India—2.0%
	87,999	Axis Bank Ltd. GDR(b)		3,902,756
	49,773	HDFC Bank Ltd. ADR		2,829,097
	629,741	ICICI Bank Ltd. ADR		6,883,069
	248,700	Infosys Ltd. ADR		7,704,726
	214,742	Larsen & Toubro Ltd. GDR(b)		5,486,658
	194,200	Reliance Industries Ltd. GDR(b)		5,223,980
				32,030,286
		Ireland—0.1%
	5,970	Shire PLC ADR		1,453,755
		Israel—0.9%
	233,864	Teva Pharmaceutical Industries Ltd. ADR		14,130,063
		Italy—0.6%
	132,826	Luxottica Group SpA ADR		8,716,042

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Japan—2.5%
	406,903	Honda Motor Co. Ltd. ADR	$	13,643,458
	471,865	Nippon Telegraph & Telephone Corp. ADR		15,892,413
	125,722	ORIX Corp. ADR(c)		9,686,880
				39,222,751
		Kazakhstan—3.9%
	5,383,572	KazMunaiGas Exploration Production JSC GDR(b)		61,103,542
		Mexico—0.6%
	443,597	America Movil SAB de CV, Series L ADR		9,266,741
		Netherlands—0.3%
	40,829	ASML Holding NV		4,370,336
		Norway—4.2%
	3,106,137	Statoil ASA ADR(a)		65,943,289
		Russia—7.1%
	627,084	LUKOIL OAO ADR		32,106,701
	335,777	Magnit PJSC GDR(b)		18,518,102
	86,122	NOVATEK OAO GDR(b)		8,371,058
	10,812,325	Rosneft OAO GDR(b)		53,412,885
				112,408,746
		South Africa—2.1%
	833,850	Sasol Ltd. ADR		33,562,463
		Sweden—1.1%
	1,540,096	Telefonaktiebolaget LM Ericsson, Class B ADR(a)		16,817,848
		Switzerland—3.4%
	966,955	ABB Ltd. ADR(a)		21,050,611
	147,645	Novartis AG ADR		15,030,261
	255,779	Syngenta AG ADR		17,147,424
				53,228,296
		United Kingdom—19.9%
	700,110	AMEC Foster Wheeler PLC ADR(a)		9,787,538
	59,306	ARM Holdings PLC ADR		3,024,013
	435,570	Barclays PLC ADR(a)		6,855,872
	200,154	British American Tobacco PLC ADR		22,038,957
	206,401	BT Group PLC ADR		14,423,302
	133,618	Diageo PLC ADR		14,834,270
	647,750	GlaxoSmithKline PLC ADR		29,893,662
	690,318	HSBC Holdings PLC ADR		34,260,482
	254,585	Intercontinental Hotels Group PLC ADR		10,847,867
	957,158	Pearson PLC ADR(a)		19,372,878
	148,551	Pentair PLC		9,232,445
	259,099	Prudential PLC ADR(a)		12,931,631
	323,244	Reed Elsevier NV ADR(a)		15,434,901
	466,769	Rio Tinto PLC ADR(a)		20,906,583
	231,343	Smith & Nephew PLC ADR		7,840,214
	436,990	Unilever NV		19,000,325
	424,401	Unilever PLC ADR		18,597,252
	853,478	Vodafone Group PLC ADR		30,042,426
	117,020	WPP PLC ADR(a)		13,624,639
				312,949,257

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

28

PowerShares International Dividend Achievers™ Portfolio (PID) (continued)

April 30, 2015

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		United States—26.4%
	134,959	Accenture PLC, Class A	$	12,503,951
	111,346	ACE Ltd.		11,912,909
	288,566	Allied World Assurance Co. Holdings AG		11,871,605
	229,706	Axis Capital Holdings Ltd.		11,958,494
	534,984	Brookfield Infrastructure Partners LP		23,501,847
	110,719	Bunge Ltd.		9,562,800
	95,179	Core Laboratories NV(a)		12,495,099
	218,052	Eaton Corp. PLC		14,986,714
	2,519,080	Ensco PLC, Class A		68,720,503
	430,443	Garmin Ltd.(a)		19,451,719
	345,923	Invesco Ltd.(d)		14,328,131
	260,034	Lazard Ltd., Class A		13,789,603
	1,260,147	Maiden Holdings Ltd.		18,309,936
	626,369	OFG Bancorp(a)		8,825,539
	10,344	Perrigo Co. PLC		1,895,848
	61,901	RenaissanceRe Holdings Ltd.		6,344,234
	1,134,205	Teekay LNG Partners LP(a)		44,710,361
	2,509,772	Teekay Offshore Partners LP(a)		58,879,251
	1,013,378	Textainer Group Holdings Ltd.(a)		30,705,354
	481,988	Thomson Reuters Corp.		19,790,427
				414,544,325
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $1,461,008,375)—100.0%		1,571,898,539
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—11.1%
	174,643,153	Invesco Liquid Assets Portfolio—Institutional Class(e)(f) (Cost $174,643,153)		174,643,153
		Total Investments (Cost $1,635,651,528)—111.1%		1,746,541,692
		Other assets less liabilities—(11.1)%		(174,695,417	)
		Net Assets—100.0%	$	1,571,846,275

Investment Abbreviations:

ADR—American Depositary Receipt

GDR—Global Depositary Receipt

Notes to Schedule of Investments:

^(a)  All or a portion of this security was out on loan at April 30, 2015.

^(b)  Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at April 30, 2015 was $156,018,981, which represented 9.93% of the Fund’s Net Assets.

^(c)  Non-income producing security.

^(d)  Affiliated company. The Fund’s Adviser is a wholly-owned subsidiary of Invesco Ltd. and therefore, Invesco Ltd. is considered to be affiliated. See Note 4.

^(e)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated.

^(f)  The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2G. The following table presents the Fund’s gross and net amount of assets available for offset by the Fund as of April 30, 2015.

Counterparty	Gross Amount of Securities on Loan at Value		Cash Collateral Received for Securities Loaned*			Net Amount
Brown Brothers Harriman & Co.	$	169,203,137	$	(169,203,137	)	$	—

* Amount does not include excess collateral received, if any.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

29

Statements of Assets and Liabilities

April 30, 2015

	PowerShares BuyBack Achievers™ Portfolio (PKW)			PowerShares Dividend Achievers™ Portfolio (PFM)			PowerShares Financial Preferred Portfolio (PGF)			PowerShares High Yield Equity Dividend Achievers™ Portfolio (PEY)			PowerShares International Dividend Achievers™ Portfolio (PID)
Assets:
Unaffiliated investments, at value(a)	$	2,968,282,351		$	342,706,224		$	1,478,089,119		$	537,343,093		$	1,557,570,408
Affiliated investments, at value		25,957,224			921,802			26,731,610			10,848,215			188,971,284
Total investments, at value		2,994,239,575			343,628,026			1,504,820,729			548,191,308			1,746,541,692
Receivables:
Investments sold		106,491,966			63,184			—			—			2,150,301
Shares sold		71,665,551			—			—			—			—
Dividends		1,307,813			580,270			3,516,094			1,500,378			3,321,343
Securities lending		57,814			—			60,860			3,895			141,856
Foreign tax reclaims		—			—			—			—			892,274
Settlement proceeds		—			—			—			—			1,765
Total Assets		3,173,762,719			344,271,480			1,508,397,683			549,695,581			1,753,049,231
Liabilities:
Due to custodian		—			6,870			6,895,021			280,646			3,040,865
Payables:
Investments purchased		107,888,503			—			1,286,250			580,491			1,805,693
Shares repurchased		70,736,282			—			—			—			—
Collateral upon return of securities loaned		20,859,298			—			26,731,610			10,848,215			174,643,153
Accrued advisory fees		1,240,886			114,888			608,337			186,173			510,465
Accrued trustees’ and officer’s fees		57,052			25,847			88,785			29,415			56,977
Accrued expenses		2,056,578			305,044			1,071,232			446,213			1,145,803
Total Liabilities		202,838,599			452,649			36,681,235			12,371,153			181,202,956
Net Assets	$	2,970,924,120		$	343,818,831		$	1,471,716,448		$	537,324,428		$	1,571,846,275
Net Assets Consist of:
Shares of beneficial interest	$	2,793,429,037		$	298,255,494		$	1,398,381,648		$	639,047,289		$	1,760,205,015
Undistributed net investment income		4,900,076			1,171,060			412,813			214,159			6,170,194
Undistributed net realized gain (loss)		(90,270,456	)		(21,383,860	)		(33,271,130	)		(134,791,100	)		(305,419,098	)
Net unrealized appreciation		262,865,463			65,776,137			106,193,117			32,854,080			110,890,164
Net Assets	$	2,970,924,120		$	343,818,831		$	1,471,716,448		$	537,324,428		$	1,571,846,275
Shares outstanding (unlimited amount authorized, $0.01 par value)		60,900,000			16,050,000			79,750,000			39,950,000			85,350,000
Net asset value	$	48.78		$	21.42		$	18.45		$	13.45		$	18.42
Market price	$	48.77		$	21.40		$	18.46		$	13.45		$	18.43
Unaffiliated investments, at cost	$	2,705,423,021		$	276,920,295		$	1,371,896,002		$	504,489,013		$	1,446,531,230
Affiliated investments, at cost	$	25,951,091		$	931,594		$	26,731,610		$	10,848,215		$	189,120,298
Total investments, at cost	$	2,731,374,112		$	277,851,889		$	1,398,627,612		$	515,337,228		$	1,635,651,528
(a) Includes securities on loan with an aggregate value of	$	20,265,102		$	—		$	25,980,614		$	10,330,643		$	169,203,137

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

30

Statements of Operations

For the year ended April 30, 2015

	PowerShares BuyBack Achievers™ Portfolio (PKW)			PowerShares Dividend Achievers™ Portfolio (PFM)			PowerShares Financial Preferred Portfolio (PGF)			PowerShares High Yield Equity Dividend Achievers™ Portfolio (PEY)			PowerShares International Dividend Achievers™ Portfolio (PID)
Investment Income:
Unaffiliated dividend income	$	47,892,651		$	9,337,772		$	92,602,762		$	19,079,968		$	46,671,540
Securities lending income		695,629			—			551,554			74,456			2,581,057
Affiliated dividend income		69,518			33			329			70			89
Foreign withholding tax		—			—			—			—			(3,350,405	)
Total Income		48,657,798			9,337,805			93,154,645			19,154,494			45,902,281
Expenses:
Advisory fees		14,107,538			1,427,875			7,161,890			1,997,011			5,539,846
Sub-licensing fees		2,821,508			356,968			1,357,180			499,252			1,384,961
Accounting & administration fees		545,152			70,726			278,803			93,351			267,573
Trustees’ and officer’s fees		61,620			14,622			34,863			16,661			33,075
Custodian & transfer agent fees		42,968			24,461			59,254			12,108			182,900
Other expenses		245,043			67,184			153,542			92,021			189,631
Total Expenses		17,823,829			1,961,836			9,045,532			2,710,404			7,597,986
Less: Waivers		(2,768	)		(269	)		(2,804	)		(590	)		(574	)
Net Expenses		17,821,061			1,961,567			9,042,728			2,709,814			7,597,412
Net Investment Income		30,836,737			7,376,238			84,111,917			16,444,680			38,304,869
Realized and Unrealized Gain (Loss):
Net realized gain (loss) from:
Investment securities		(44,625,379	)		833,803			5,565,276			(5,213,252	)		(33,784,473	)
In-kind redemptions		302,786,864			23,947,660			12,980,643			61,033,054			37,713,928
Foreign currencies		—			—			—			—			991
Net realized gain		258,161,485			24,781,463			18,545,919			55,819,802			3,930,446
Net change in unrealized appreciation (depreciation) on investment securities		37,064,023			(8,826,932	)		17,654,230			(9,435,272	)		(19,752,892	)
Net realized and unrealized gain (loss)		295,225,508			15,954,531			36,200,149			46,384,530			(15,822,446	)
Net increase in net assets resulting from operations	$	326,062,245		$	23,330,769		$	120,312,066		$	62,829,210		$	22,482,423

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

31

Statements of Changes in Net Assets

For the years ended April 30, 2015 and 2014

	PowerShares BuyBack Achievers™ Portfolio (PKW)						PowerShares Dividend Achievers™ Portfolio (PFM)
	2015			2014			2015			2014
Operations:
Net investment income	$	30,836,737		$	17,305,602		$	7,376,238		$	6,689,623
Net realized gain		258,161,485			126,786,066			24,781,463			20,581,678
Net change in unrealized appreciation (depreciation)		37,064,023			186,899,277			(8,826,932	)		16,307,260
Net increase in net assets resulting from operations		326,062,245			330,990,945			23,330,769			43,578,561
Distributions to Shareholders from:
Net investment income		(32,756,576	)		(10,911,610	)		(7,214,576	)		(6,755,875	)
Shareholder Transactions:
Proceeds from shares sold		1,366,740,866			3,285,171,345			49,356,388			79,961,620
Value of shares repurchased		(1,594,242,954	)		(1,118,751,473	)		(73,210,711	)		(62,155,717	)
Net increase (decrease) in net assets resulting from shares transactions		(227,502,088	)		2,166,419,872			(23,854,323	)		17,805,903
Increase (Decrease) in Net Assets		65,803,581			2,486,499,207			(7,738,130	)		54,628,589
Net Assets:
Beginning of year		2,905,120,539			418,621,332			351,556,961			296,928,372
End of year	$	2,970,924,120		$	2,905,120,539		$	343,818,831		$	351,556,961
Undistributed net investment income (loss) at end of year	$	4,900,076		$	6,767,023		$	1,171,060		$	797,016
Changes in Shares Outstanding:
Shares sold		28,850,000			82,050,000			2,300,000			4,100,000
Shares repurchased		(34,850,000	)		(27,250,000	)		(3,400,000	)		(3,150,000	)
Shares outstanding, beginning of year		66,900,000			12,100,000			17,150,000			16,200,000
Shares outstanding, end of year		60,900,000			66,900,000			16,050,000			17,150,000

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

32

PowerShares Financial Preferred Portfolio (PGF)						PowerShares High Yield Equity Dividend Achievers™ Portfolio (PEY)						PowerShares International Dividend Achievers™ Portfolio (PID)
2015			2014			2015			2014			2015			2014
$	84,111,917		$	96,727,623		$	16,444,680		$	12,883,764		$	38,304,869		$	38,477,799
	18,545,919			69,653,790			55,819,802			41,966,345			3,930,446			51,317,591
	17,654,230			(149,768,967	)		(9,435,272	)		5,744,238			(19,752,892	)		25,895,334
	120,312,066			16,612,446			62,829,210			60,594,347			22,482,423			115,690,724
	(83,658,606	)		(96,939,622	)		(16,547,207	)		(12,646,964	)		(36,588,767	)		(39,823,589	)
	96,086,975			84,078,357			394,961,598			143,056,402			570,101,010			406,219,189
	(96,582,262	)		(459,644,875	)		(297,022,280	)		(120,376,506	)		(144,801,898	)		(198,773,646	)
	(495,287	)		(375,566,518	)		97,939,318			22,679,896			425,299,112			207,445,543
	36,158,173			(455,893,694	)		144,221,321			70,627,279			411,192,768			283,312,678
	1,435,558,275			1,891,451,969			393,103,107			322,475,828			1,160,653,507			877,340,829
$	1,471,716,448		$	1,435,558,275		$	537,324,428		$	393,103,107		$	1,571,846,275		$	1,160,653,507
$	412,813		$	(70,006	)	$	214,159		$	316,686		$	6,170,194		$	2,479,352
	5,250,000			4,800,000			30,300,000			12,250,000			30,700,000			22,950,000
	(5,300,000	)		(26,300,000	)		(22,250,000	)		(10,300,000	)		(7,900,000	)		(11,200,000	)
	79,800,000			101,300,000			31,900,000			29,950,000			62,550,000			50,800,000
	79,750,000			79,800,000			39,950,000			31,900,000			85,350,000			62,550,000

33

Financial Highlights

PowerShares BuyBack Achievers^TM Portfolio (PKW)

	Year Ended April 30,
	2015			2014			2013			2012			2011
Per Share Operating Performance:
Net asset value at beginning of year	$	43.42		$	34.60		$	29.40		$	27.27		$	22.36
Net investment income(a)		0.51			0.39			0.37			0.27			0.11
Net realized and unrealized gain on investments		5.38			8.70			5.18			2.12			4.87
Total from investment operations		5.89			9.09			5.55			2.39			4.98
Distributions to shareholders from:
Net investment income		(0.53	)		(0.27	)		(0.35	)		(0.26	)		(0.07	)
Net asset value at end of year	$	48.78		$	43.42		$	34.60		$	29.40		$	27.27
Market price at end of year(b)	$	48.77		$	43.42		$	34.61		$	29.40		$	27.27
Net Asset Value Total Return(c)		13.63	%		26.36	%		19.08	%		8.91	%		22.34	%
Market Price Total Return(c)		13.61	%		26.32	%		19.11	%		8.91	%		22.29	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	2,970,924		$	2,905,121		$	418,621		$	139,641		$	43,637
Ratio to average net assets of:
Expenses, after Waivers		0.63	%(d)		0.66	%(d)		0.70	%		0.71	%		0.70	%
Expenses, prior to Waivers		0.63	%(d)		0.66	%(d)		0.70	%		0.79	%		1.00	%
Net investment income, after Waivers		1.09	%		0.95	%		1.21	%		1.00	%		0.49	%
Portfolio turnover rate(e)		68	%		92	%		80	%		32	%		26	%

^(a)  Based on average shares outstanding.

^(b)  The mean between the last bid and ask prices.

^(c)  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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(d)  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 company expenses are not expenses that are incurred directly by the Fund. They are expenses that are incurred directly by the investment companies and are deducted from the value of the funds that the Fund invests in. The effect of the estimated investment company expenses that the Fund bears indirectly is included in the Fund’s total return.

^(e)  Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.

PowerShares Dividend Achievers^TM Portfolio (PFM)

	Year Ended April 30,
	2015			2014			2013			2012			2011
Per Share Operating Performance:
Net asset value at beginning of year	$	20.50		$	18.33		$	15.81		$	15.29		$	13.21
Net investment income(a)		0.44			0.39			0.38			0.34			0.31
Net realized and unrealized gain on investments		0.90			2.16			2.52			0.51			2.08
Total from investment operations		1.34			2.55			2.90			0.85			2.39
Distributions to shareholders from:
Net investment income		(0.42	)		(0.38	)		(0.38	)		(0.33	)		(0.31	)
Net asset value at end of year	$	21.42		$	20.50		$	18.33		$	15.81		$	15.29
Market price at end of year(b)	$	21.40		$	20.50		$	18.32		$	15.80		$	15.29
Net Asset Value Total Return(c)		6.54	%		14.11	%		18.67	%		5.78	%		18.39	%
Market Price Total Return(c)		6.44	%		14.17	%		18.68	%		5.71	%		18.39	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	343,819		$	351,557		$	296,928		$	252,988		$	217,859
Ratio to average net assets of:
Expenses, after Waivers		0.55	%		0.55	%		0.58	%		0.60	%		0.60	%
Expenses, prior to Waivers		0.55	%		0.55	%		0.58	%		0.60	%		0.61	%
Net investment income, after Waivers		2.07	%		2.05	%		2.28	%		2.28	%		2.30	%
Portfolio turnover rate(d)		20	%		21	%		18	%		20	%		11	%

^(a)  Based on average shares outstanding.

^(b)  The mean between the last bid and ask prices.

^(c)  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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(d)  Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

34

Financial Highlights (continued)

PowerShares Financial Preferred Portfolio (PGF)

	Year Ended April 30,
	2015			2014			2013			2012			2011
Per Share Operating Performance:
Net asset value at beginning of year	$	17.99		$	18.67		$	17.79		$	18.26		$	16.97
Net investment income(a)		1.07			1.10			1.18			1.17			1.18
Net realized and unrealized gain (loss) on investments		0.45			(0.68	)		0.85			(0.42	)		1.36
Total from investment operations		1.52			0.42			2.03			0.75			2.54
Distributions to shareholders from:
Net investment income		(1.06	)		(1.10	)		(1.15	)		(1.17	)		(1.21	)
Return of capital		—			—			—			(0.05	)		(0.04	)
Total distributions		(1.06	)		(1.10	)		(1.15	)		(1.22	)		(1.25	)
Net asset value at end of year	$	18.45		$	17.99		$	18.67		$	17.79		$	18.26
Market price at end of year(b)	$	18.46		$	17.98		$	18.70		$	17.83		$	18.28
Net Asset Value Total Return(c)		8.73	%		2.63	%		11.78	%		4.56	%		15.57	%
Market Price Total Return(c)		8.85	%		2.41	%		11.71	%		4.68	%		15.97	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	1,471,716		$	1,435,558		$	1,891,452		$	1,612,698		$	1,832,516
Ratio to average net assets of:
Expenses, after Waivers		0.63	%		0.63	%		0.64	%		0.66	%		0.66	%
Expenses, prior to Waivers		0.63	%		0.63	%		0.64	%		0.66	%		0.66	%
Net investment income, after Waivers		5.87	%		6.28	%		6.47	%		6.76	%		6.75	%
Portfolio turnover rate(d)		9	%		30	%		18	%		6	%		26	%

^(a)  Based on average shares outstanding.

^(b)  The mean between the last bid and ask prices.

^(c)  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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(d)  Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.

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

	Year Ended April 30,
	2015			2014			2013			2012			2011
Per Share Operating Performance:
Net asset value at beginning of year	$	12.32		$	10.77		$	9.36		$	9.06		$	8.44
Net investment income(a)		0.43			0.42			0.42			0.35			0.34
Net realized and unrealized gain on investments		1.13			1.54			1.41			0.29			0.63
Total from investment operations		1.56			1.96			1.83			0.64			0.97
Distributions to shareholders from:
Net investment income		(0.43	)		(0.41	)		(0.42	)		(0.34	)		(0.34	)
Return of capital		—			—			—			—			(0.01	)
Total distributions		(0.43	)		(0.41	)		(0.42	)		(0.34	)		(0.35	)
Net asset value at end of year	$	13.45		$	12.32		$	10.77		$	9.36		$	9.06
Market price at end of year(b)	$	13.45		$	12.32		$	10.76		$	9.36		$	9.06
Net Asset Value Total Return(c)		12.89	%		18.61	%		20.16	%		7.37	%		11.91	%
Market Price Total Return(c)		12.89	%		18.72	%		20.05	%		7.37	%		11.91	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	537,324		$	393,103		$	322,476		$	276,169		$	208,471
Ratio to average net assets of:
Expenses, after Waivers		0.54	%		0.55	%		0.57	%		0.60	%		0.60	%
Expenses, prior to Waivers		0.54	%		0.55	%		0.57	%		0.60	%		0.62	%
Net investment income, after Waivers		3.29	%		3.70	%		4.31	%		3.88	%		4.02	%
Portfolio turnover rate(d)		45	%		51	%		32	%		35	%		44	%

^(a)  Based on average shares outstanding.

^(b)  The mean between the last bid and ask prices.

^(c)  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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(d)  Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

35

Financial Highlights (continued)

PowerShares International Dividend Achievers^TM Portfolio (PID)

	Year Ended April 30,
	2015			2014			2013			2012			2011
Per Share Operating Performance:
Net asset value at beginning of year	$	18.56		$	17.27		$	15.35		$	16.85		$	14.26
Net investment income(a)		0.51			0.67	(b)		0.40			0.48			0.47
Net realized and unrealized gain (loss) on investments		(0.17	)		1.26			1.93			(1.49	)		2.59
Total from investment operations		0.34			1.93			2.33			(1.01	)		3.06
Distributions to shareholders from:
Net investment income		(0.48	)		(0.64	)		(0.41	)		(0.49	)		(0.47	)
Net asset value at end of year	$	18.42		$	18.56		$	17.27		$	15.35		$	16.85
Market price at end of year(c)	$	18.43		$	18.58		$	17.31		$	15.37		$	16.89
Net Asset Value Total Return(d)		1.83	%		11.50	%		15.63	%		(5.87	)%		21.95	%
Market Price Total Return(d)		1.77	%		11.35	%		15.75	%		(5.97	)%		22.23	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	1,571,846		$	1,160,654		$	877,341		$	690,196		$	550,282
Ratio to average net assets of:
Expenses, after Waivers		0.55	%		0.54	%		0.56	%		0.55	%		0.58	%
Expenses, prior to Waivers		0.55	%		0.54	%		0.56	%		0.56	%		0.58	%
Net investment income, after Waivers		2.77	%		3.82	%(b)		2.57	%		3.20	%		3.20	%
Portfolio turnover rate(e)		66	%		49	%		46	%		33	%		42	%

^(a)  Based on average shares outstanding.

^(b)  Net investment income per share and the ratio of net investment income to average net assets include a significant dividend during the year. Net investment income per share and the ratio of net investment income to average net assets excluding the significant dividend are $0.43 and 2.42%, respectively.

^(c)  The mean between the last bid and ask prices.

^(d)  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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(e)  Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

36

Notes to Financial Statements

PowerShares Exchange-Traded Fund Trust

April 30, 2015

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, 2015, the Trust offered fifty-three portfolios. This report includes the following portfolios:

Full Name	Short Name
PowerShares BuyBack AchieversTM Portfolio (PKW)	“BuyBack AchieversTM Portfolio”
PowerShares Dividend AchieversTM Portfolio (PFM)	“Dividend AchieversTM Portfolio”
PowerShares Financial Preferred Portfolio (PGF)	“Financial Preferred Portfolio”
PowerShares High Yield Equity Dividend AchieversTM Portfolio (PEY)	“High Yield Equity Dividend AchieversTM Portfolio”
PowerShares International Dividend AchieversTM Portfolio (PID)	“International Dividend AchieversTM Portfolio”

Each portfolio (each, a “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 NYSE Arca, Inc.

The market price of each Share may differ to some degree from the Fund’s net asset value (“NAV”). 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 principally in exchange for the deposit or delivery of a basket of securities (“Deposit Securities”). 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 generally correspond (before fees and expenses) to the price and yield of its respective index listed below (each, an “Underlying Index”):

Fund	Underlying Index
BuyBack AchieversTM Portfolio	NASDAQ US BuyBack AchieversTM Index
Dividend AchieversTM Portfolio	NASDAQ US Broad Dividend AchieversTM Index
Financial Preferred Portfolio	Wells Fargo® Hybrid & Preferred Securities Financial Index
High Yield Equity Dividend AchieversTM Portfolio	NASDAQ US Dividend AchieversTM 50 Index
International Dividend AchieversTM Portfolio	NASDAQ International Dividend AchieversTM Index

Note 2. Significant Accounting Policies

The preparation of the financial statements in accordance with accounting principles generally accepted in the United States of America (“GAAP”) 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. The following is a summary of the significant accounting policies followed by the Funds in preparation of their financial statements.

A. Security Valuation

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

A security listed or traded on an exchange (except convertible securities) 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. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked 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 asked prices. For purposes of determining NAV per Share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).

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Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end of day NAV per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the 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.

Debt obligations (including convertible securities) 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 (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Securities with a demand feature exercisable within one to seven days are valued at par. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

Foreign securities’ (including foreign exchange contracts’) prices 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 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 Invesco PowerShares Capital Management LLC (the “Adviser”) determines 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’ prices 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. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.

Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith following procedures approved by the Board of Trustees. Issuer-specific events, market trends, bid/asked 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.

Each Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.

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

Index Risk. Unlike many investment companies, the Funds do not utilize investing strategies that seek returns in excess of their Underlying Indexes. Therefore, a Fund would not necessarily buy or sell a security unless that security is added or removed, respectively, from its respective Underlying Index, even if that security generally is underperforming.

Equity Risk. Equity risk is the risk that the value of the securities that each Fund holds will fall due to general market and economic conditions, perceptions regarding the industries in which the issuers of securities that a Fund holds participate or factors relating to specific companies in which the Fund invests. For example, an adverse event, such as an unfavorable earnings report, may depress the value of securities a Fund holds; the price of securities may be particularly sensitive to general movements in the stock market; or a drop in the stock market may depress the price of most or all of the securities a Fund holds. In addition, securities of an issuer in the Fund’s portfolio may decline in price if the issuer fails to make anticipated dividend payments because, among other reasons, the issuer of the security experiences a decline in its financial condition.

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Industry Concentration Risk. In following its methodology, each Fund’s Underlying Index from time to time may be concentrated to a significant degree in securities of issuers located in a single industry or a sector. To the extent that an Underlying Index concentrates in the securities of issuers in a particular industry or sector, each Fund will also concentrate its investments to approximately the same extent. By concentrating its investments in an industry or sector, a Fund may face more risks than if it were diversified broadly over numerous industries or sectors. In addition, at times, an industry or sector may be out of favor and underperform other industries or the market as a whole. Any factors detrimental to the performance of such industry or sector will disproportionately impact a Fund’s NAV.

Non-Diversified Fund Risk. BuyBack Achievers^TM Portfolio and Financial Preferred Portfolio are non-diversified and can invest a greater portion of their assets in securities of individual issuers than diversified funds. 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. This may increase a Fund’s volatility and cause the performance of a relatively small number of issuers to have a greater impact on a Fund’s performance.

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 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.

Sampling Risk. Financial Preferred Portfolio’s use of a representative sampling approach will result in the Fund holding a smaller number of securities than are in its Underlying Index. As a result, an adverse development to 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.

Small and Medium Capitalization Company Risk. Investing in securities of small and medium capitalization companies involves greater risk than customarily is 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 focus are still evolving and, as a result, they may be more sensitive to changing market conditions.

Dividend Paying Security Risk. Dividend Achievers^TM Portfolio, High Yield Equity Dividend Achievers^TM Portfolio and International Dividend Achievers^TM Portfolio invest in securities that pay high dividends. As a group, these securities can fall out of favor with the market, causing such companies to underperform companies that do not pay high dividends. Also, changes in the dividend policies of the companies in an Underlying Index and the capital resources available for such companies’ dividend payments may affect a Fund.

Foreign Securities Risk. For Financial Preferred Portfolio and International Dividend Achievers^TM Portfolio, investments in foreign securities involve risks in addition to the risks associated with domestic securities. In general, foreign companies are not subject to the regulatory requirements of U.S. companies and, as such, there may be less publicly available information about these companies. Moreover, foreign companies often are subject to less stringent requirements regarding accounting, auditing, financial reporting and record-keeping than are U.S. companies. Therefore, not all material information regarding these companies will be available.

In addition, securities of foreign issuers may be less liquid than comparable securities of U.S. issuers and, as such, their price changes may be more volatile. Furthermore, foreign exchanges and broker-dealers generally are subject to less government and exchange scrutiny and regulation than their U.S. counterparts. In addition, differences in clearance and settlement procedures in foreign markets may cause delays in settlement of a Fund’s trades effected in those markets and could result in losses to a Fund due to subsequent declines in the value of the securities subject to the trades. Depositary receipts also involve substantially identical risks to those associated with investments in foreign securities. Additionally, the issuers of certain depositary receipts, particularly unsponsored or unregistered depositary receipts, have no obligation to distribute shareholder communications to the holders of such receipts or to pass through to them any voting rights with respect to the deposited securities.

High Yield Securities Risk. For Financial Preferred Portfolio and High Yield Equity Dividend Achievers^TM Portfolio, high yield securities typically involve greater risk and are less liquid than higher grade issues. Changes in general economic conditions, changes in the financial condition of the issuers and changes in interest rates may adversely impact the ability of issuers of high yield securities to make timely payments of interest and principal.

Preferred Securities Risk. Financial Preferred Portfolio faces special risks associated with investing 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 also may be subordinated to bonds or other debt

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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.

C. Federal Income Taxes

Each Fund intends to comply with the provisions of the Internal Revenue Code of 1986, as amended (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.

Each Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed each Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.

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 U.S. federal tax returns and tax returns in 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 Transactions and Investment Income

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

Corporate actions (including cash dividends) are recorded net of non-reclaimable foreign tax withholdings on the ex-date.

E. Expenses

Expenses of the Trust that are directly identifiable to a specific Fund are applied to that Fund. Expenses of the Trust 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 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 Index, any distribution fees or expenses, litigation expenses, fees payable to the Trust’s Board members who are not “interested persons” (as defined in the 1940 Act) of the Trust (the “Independent Trustees”) or the Adviser, expenses incurred in connection with the Board members’ services, including travel expenses and legal fees of counsel for the Independent Trustees, acquired fund fees and expenses, if any, and extraordinary expenses.

To the extent a Fund invests in other investment companies, the expenses shown 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 such investment companies’ expenses are included in the realized and unrealized gain or loss on the investments in the investment companies.

F. Dividends and Distributions to Shareholders

Each Fund (except for Financial Preferred Portfolio and High Yield Equity Dividend Achievers^TM Portfolio, which declare and pay dividends from net investment income, if any, monthly) declares and pays dividends from net investment income, if any, to its shareholders quarterly and records such dividends on ex-dividend date. Generally, each Fund distributes net realized taxable capital gains, if any, annually in cash and records them on ex-dividend date. Such distributions on a tax basis are determined in conformity with federal 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 year-end.

G. Securities Lending

During the fiscal year ended April 30, 2015, BuyBack Achievers^TM Portfolio, Financial Preferred Portfolio, High Yield Equity Dividend Achievers^TM Portfolio and International Dividend Achievers^TM Portfolio participated in securities lending. Each Fund loaned portfolio securities having a market value up to one-third of each Fund’s total assets. Such loans are secured by cash collateral equal to no less than 102% (105% for international) of the market value of the loaned securities determined daily by the securities lending provider. Cash collateral received in connection with these loans is invested in an affiliated money market fund and is shown as such on the Schedule of Investments. It is the policy of these Funds to obtain additional collateral from or return excess collateral to the borrower by

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the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. Lending securities entails a risk of loss to a Fund if, and to the extent that, the market value of the securities loaned were to increase, and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. A Fund could experience delays and costs in gaining access to the collateral. A Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, are included in Securities lending income on the Statements of Operations. The aggregate value of securities out on loan, if any, is shown on the Statements of Assets and Liabilities.

Note 3. Investment Advisory Agreement and Other Agreements

The Trust has entered into an Investment Advisory Agreement with the Adviser on behalf of each Fund, pursuant to which the Adviser has overall responsibility for the selection and ongoing monitoring of the Funds’ investments, managing the Funds’ business affairs and providing certain clerical, bookkeeping and other administrative services. Pursuant to that Investment Advisory Agreement, each Fund has agreed to pay the Adviser an annual fee of 0.40% of the Fund’s average daily net assets, except for BuyBack Achievers^TM Portfolio and Financial Preferred Portfolio, each of which pay the Adviser an annual fee of 0.50% of the Fund’s average daily net assets.

The Trust also has entered into an Amended and Restated Excess Expense Agreement (the “Expense Agreement”) with the Adviser on behalf of each Fund, pursuant to which the Adviser has agreed to waive fees and/or pay Fund expenses to the extent necessary to prevent the operating expenses (excluding interest expenses, brokerage commissions and other trading expenses, sub-licensing fees, offering costs, taxes, acquired fund fees and expenses, if any, and extraordinary expenses) of each Fund (except for BuyBack Achievers^TM Portfolio and Financial Preferred Portfolio) 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”), through at least August 31, 2016. Offering costs excluded from the Expense Cap for each Fund 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. Unless the Adviser continues the Expense Agreement, it will terminate on August 31, 2016. The Expense Agreement cannot be terminated during its term. For each Fund, the Adviser did not waive fees and/or pay Fund expenses during the period under this Expense Cap.

Further, through August 31, 2017, the Adviser has contractually agreed to waive a portion of each Fund’s management fee in an amount equal to 100% of the net advisory fees an affiliate of the Adviser receives that are attributable to certain of the Fund’s investments in money market funds managed by that affiliate (excluding investments of cash collateral from securities lending). The Adviser cannot discontinue this waiver prior to its expiration. This agreement is not subject to recapture by the Adviser.

For the fiscal year ended April 30, 2015, the Adviser waived fees and/or paid Fund expenses for each Fund in the following amounts:

BuyBack AchieversTM Portfolio	$	2,768
Dividend AchieversTM Portfolio		269
Financial Preferred Portfolio		2,804
High Yield Equity Dividend AchieversTM Portfolio		590
International Dividend AchieversTM Portfolio		574

The Expense Agreement provides that the fees waived or expenses borne by the Adviser are subject to recapture by the Adviser for up to three years from the date the fee was waived or expense was borne by the Adviser, but no recapture payment will be made by a Fund if it would result in the Fund exceeding its Expense Cap as specified above.

For the fiscal year ended April 30, 2015, there were no amounts available for potential recapture by the Adviser under the Expense Agreement.

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 Funds are not charged any fees pursuant to the Distribution Agreement. The Distributor is an affiliate of the Adviser.

The Adviser has entered into a licensing agreement for each Fund with the following entities (each, a “Licensor”):

Fund	Licensor
BuyBack AchieversTM Portfolio	NASDAQ OMX Group, Inc.
Dividend AchieversTM Portfolio	NASDAQ OMX Group, Inc.
Financial Preferred Portfolio	Wells Fargo Securities, LLC
High Yield Equity Dividend AchieversTM Portfolio	NASDAQ OMX Group, Inc.
International Dividend AchieversTM Portfolio	NASDAQ OMX Group, Inc.

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Each Underlying Index name trademark is owned by its respective Licensor. These trademarks have been licensed to the Adviser for use by the Funds. Each Fund is entitled to use its Underlying Index pursuant to the Trust’s sub-licensing agreement with the Adviser. The Funds are required to pay the sub-licensing fees that are shown on the Statements of Operations. 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 the Funds.

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

Note 4. Investments in Affiliates

The Adviser and Invesco Mortgage Capital, Inc. REIT are wholly-owned subsidiaries of Invesco Ltd., and therefore Invesco Ltd. and Invesco Mortgage Capital, Inc. REIT are considered to be affiliated with the Funds. The table below shows certain Funds’ transactions in, and earnings from, investments in affiliates for the fiscal year ended April 30, 2015.

BuyBack Achievers^TM Portfolio

	Value April 30, 2014		Purchases at Cost		Proceeds from Sales			Change in Unrealized Appreciation		Realized Gain (Loss)			Value April 30, 2015		Dividend Income
Invesco Mortgage Capital, Inc. REIT	$	—	$	2,515,792	$	(19,444	)	$	6,133	$	(43	)	$	2,502,438	$	69,215

Dividend Achievers^TM Portfolio

	Value April 30, 2014		Purchases at Cost		Proceeds from Sales			Change in Unrealized Appreciation (Depreciation)			Realized Gain (Loss)			Value April 30, 2015		Dividend Income
Invesco Ltd.	$	—	$	957,508	$	(25,020	)	$	(9,792	)	$	(894	)	$	921,802	$	—

International Dividend^TM Achievers Portfolio

	Value April 30, 2014		Purchases at Cost		Proceeds from Sales			Change in Unrealized Appreciation (Depreciation)			Realized Gain		Value April 30, 2015		Dividend Income
Invesco Ltd.	$	—	$	14,694,284	$	(219,014	)	$	(149,014	)	$	1,875	$	14,328,131	$	—

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 a 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, 2015, all of the securities in each Fund were valued based on Level 1 inputs (see the Schedules of Investments for security categories). 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.

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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, 2015 and 2014:

	2015		2014
	Ordinary Income		Ordinary Income
BuyBack Achievers™ Portfolio	$	32,756,576	$	10,911,610
Dividend Achievers™ Portfolio		7,214,576		6,755,875
Financial Preferred Portfolio		83,658,606		96,939,622
High Yield Equity Dividend Achievers™ Portfolio		16,547,207		12,646,964
International Dividend Achievers™ Portfolio		36,588,767		39,823,589

Tax Components of Net Assets at Fiscal Year-End:

	Undistributed Ordinary Income		Temporary Book/Tax Differences			Net Unrealized Appreciation— Investment Securities		Capital Loss Carryforwards			Post-October Capital Loss Deferrals*			Shares of Beneficial Interest		Total Net Assets
BuyBack Achievers™ Portfolio	$	4,940,425	$	(40,349	)	$	245,649,966	$	(36,432,644	)	$	(36,622,315	)	$	2,793,429,037	$	2,970,924,120
Dividend Achievers™ Portfolio		1,192,871		(21,811	)		62,573,765		(18,181,488	)		—			298,255,494		343,818,831
Financial Preferred Portfolio		492,213		(79,400	)		97,832,754		(24,910,767	)		—			1,398,381,648		1,471,716,448
High Yield Equity Dividend Achievers™ Portfolio		238,561		(24,402	)		28,031,662		(129,374,645	)		(594,037	)		639,047,289		537,324,428
International Dividend Achievers™ Portfolio		6,864,523		(47,303	)		84,906,672		(247,606,089	)		(32,476,543	)		1,760,205,015		1,571,846,275

* The Funds will elect to defer net capital losses incurred after October 31 (“Post-October Capital Losses”) within the taxable year that are deemed to arise on the first business day of each Fund’s next taxable year.

Capital loss carryforwards are calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforwards actually available for the Funds to utilize. Capital losses generated in years beginning after December 22, 2010 can be carried forward for an unlimited period, whereas previous losses expire in eight tax years. Capital losses with an expiration period may not be used to offset capital gains until all net capital losses without an expiration date have been utilized. Capital loss carryforwards with no expiration date will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.

The following table presents available capital loss carryforwards and expiration dates for each Fund as of April 30, 2015:

									Post-effective/no expiration
	2016		2017		2018		2019		Short-Term		Long-Term		Total*		Expired
BuyBack Achievers™ Portfolio	$	2,915,680	$	800,254	$	12,142,749	$	2,107,645	$	18,466,316	$	—	$	36,432,644	$	—
Dividend Achievers™ Portfolio		—		1,209,931		14,632,363		2,339,194		—		—		18,181,488		—
Financial Preferred Portfolio		8,521,274		9,034,558		7,354,935		—		—		—		24,910,767		—
High Yield Equity Dividend Achievers™ Portfolio		884,585		81,487,358		44,815,128		2,187,574		—		—		129,374,645		—
International Dividend Achievers™ Portfolio		1,975,339		59,472,841		145,514,837		11,745,409		25,801,378		3,096,285		247,606,089		148,582

* Capital loss carryforwards as of the date listed above are reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization.

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Note 7. Investment Transactions

For the fiscal year ended April 30, 2015, the cost of securities purchased and proceeds from sales of securities (other than short-term securities, U.S. Treasury obligations, money market funds and in-kind transactions, if any) were as follows:

	Purchases		Sales
BuyBack AchieversTM Portfolio	$	1,926,395,997	$	1,942,733,334
Dividend AchieversTM Portfolio		71,902,800		70,461,320
Financial Preferred Portfolio		157,492,455		133,303,126
High Yield Equity Dividend AchieversTM Portfolio		224,864,803		225,988,780
International Dividend AchieversTM Portfolio		924,560,442		910,748,502

For the fiscal year ended April 30, 2015, in-kind transactions associated with creations and redemptions were as follows:

	Cost of Securities Received		Value of Securities Delivered
BuyBack AchieversTM Portfolio	$	1,365,111,863	$	1,590,162,340
Dividend AchieversTM Portfolio		49,064,767		73,898,327
Financial Preferred Portfolio		72,394,625		93,907,594
High Yield Equity Dividend AchieversTM Portfolio		394,937,228		295,598,053
International Dividend AchieversTM Portfolio		569,418,905		145,514,440

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

At April 30, 2015, the aggregate cost and the net unrealized appreciation of investments for tax purposes were as follows:

	Gross Unrealized Appreciation		Gross Unrealized (Depreciation)			Net Unrealized Appreciation		Cost
BuyBack AchieversTM Portfolio	$	285,469,149	$	(39,819,183	)	$	245,649,966	$	2,748,589,609
Dividend AchieversTM Portfolio		65,093,308		(2,519,543	)		62,573,765		281,054,261
Financial Preferred Portfolio		107,958,919		(10,126,165	)		97,832,754		1,406,987,975
High Yield Equity Dividend AchieversTM Portfolio		31,734,366		(3,702,704	)		28,031,662		520,159,646
International Dividend AchieversTM Portfolio		144,611,714		(59,705,042	)		84,906,672		1,661,635,020

Note 8. Reclassification of Permanent Differences

Primarily as a result of differing book/tax treatment of in-kind transactions and expired capital loss carryforwards on April 30, 2015, amounts were reclassified between undistributed net investment income, 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, 2015, the reclassifications were as follows:

	Undistributed Net Investment Income		Undistributed Net Realized Gain (Loss)			Shares of Beneficial Interest
BuyBack Achievers™ Portfolio	$	52,892	$	(297,414,167	)	$	297,361,275
Dividend Achievers™ Portfolio		212,382		(23,428,067	)		23,215,685
Financial Preferred Portfolio		29,508		(12,320,001	)		12,290,493
High Yield Equity Dividend Achievers™ Portfolio		—		(58,925,139	)		58,925,139
International Dividend Achievers™ Portfolio		1,974,740		(37,582,031	)		35,607,291

Note 9. Trustees’ and Officer’s Fees

Trustees’ and Officer’s Fees include amounts accrued by the Funds to pay remuneration to the Independent Trustees and an Officer of the Trust. The Trustee who is an “interested person” of the Trust does 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. Obligations under the Plan represent unsecured claims against the general assets of the Funds.

44

Note 10. Capital

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

To the extent that the Funds permit transactions in exchange for Deposit Securities, each Fund may issue Shares in advance of receipt of Deposit Securities subject to various conditions, including a requirement to maintain on deposit with the Trust cash at least equal to 105% of the market value of the missing Deposit Securities. In accordance with the Trust’s Participant Agreement, Creation Units will be issued to an Authorized Participant, notwithstanding the fact that the corresponding Deposit Securities have not been received in part or in whole, in reliance on the undertaking of the Authorized Participant to deliver the missing Deposit Securities as soon as possible, which undertaking shall be secured by the Authorized Participant’s delivery and maintenance of collateral consisting of cash in the form of U.S. dollars in immediately available funds having a value (marked-to-market daily) at least equal to 105%, which the Adviser may change from time to time, of the value of the missing Deposit Securities.

Transactions in each Fund’s Shares are disclosed in detail in the Statements of Changes in Net Assets.

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.

45

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 PowerShares Buyback Achievers^TM Portfolio, PowerShares Dividend Achievers^TM Portfolio, PowerShares Financial Preferred Portfolio, PowerShares High Yield Equity Dividend Achievers^TM Portfolio and PowerShares International Dividend Achievers^TM Portfolio (each an individual portfolio of PowerShares Exchange-Traded Fund Trust, hereafter referred to as the “Funds”) at April 30, 2015, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, 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 Funds’ 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, 2015 by correspondence with the custodian and brokers, and the application of alternative auditing procedures where confirmations of security purchases have not been received, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

Chicago, IL

June 24, 2015

46

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, 2015.

In addition to the fees and expenses which the PowerShares BuyBack Achievers^™ Portfolio (the “Portfolio”) bears directly, the Portfolio indirectly bears a pro rata share of the fees and expenses of the investment companies in which the Portfolio invests. The amount of fees and expenses incurred indirectly by the Portfolio will vary because the investment companies have varied expenses and fee levels and the Portfolio may own different proportions of the investment companies at different times. Estimated investment companies’ expenses are not expenses that are incurred directly by the Portfolio. They are expenses that are incurred directly by the investment companies and are deducted from the value of the investment companies the Portfolio invests in. The effect of the estimated investment companies’ expenses that the Portfolio bears indirectly are included in the Portfolio’s total returns.

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, expenses shown in the table do not include the expenses of the underlying funds, which are borne indirectly by a Fund. If transaction costs and indirect expenses were included, your costs would have been higher.

	Beginning Account Value November 1, 2014		Ending Account Value April 30, 2015		Annualized Expense Ratio Based on the Number of Days in the Period			Expenses Paid During the Six-Month Period(1)
PowerShares BuyBack AchieversTM Portfolio (PKW)
Actual	$	1,000.00	$	1,065.79		0.63	%	$	3.23
Hypothetical (5% return before expenses)		1,000.00		1,021.67		0.63			3.16
PowerShares Dividend AchieversTM Portfolio (PFM)
Actual		1,000.00		1,015.48		0.55			2.75
Hypothetical (5% return before expenses)		1,000.00		1,022.07		0.55			2.76
PowerShares Financial Preferred Portfolio (PGF)
Actual		1,000.00		1,047.11		0.63			3.20
Hypothetical (5% return before expenses)		1,000.00		1,021.67		0.63			3.16
PowerShares High Yield Equity Dividend AchieversTM Portfolio (PEY)
Actual		1,000.00		1,043.81		0.54			2.74
Hypothetical (5% return before expenses)		1,000.00		1,022.12		0.54			2.71

47

Fees and Expenses (continued)

	Beginning Account Value November 1, 2014		Ending Account Value April 30, 2015		Annualized Expense Ratio Based on the Number of Days in the Period			Expenses Paid During the Six-Month Period(1)
PowerShares International Dividend AchieversTM Portfolio (PID)
Actual	$	1,000.00	$	1,016.64		0.56	%	$	2.80
Hypothetical (5% return before expenses)		1,000.00		1,022.02		0.56			2.81

⁽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, 2015. Expenses are calculated by multiplying the Fund’s annualized expense ratio by the average account value for the period, then multiplying the result by 181/365. Expense ratios for the most recent six-month period may differ from expense ratios based on the annualized data in the Financial Highlights.

48

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 advisers.

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, 2015:

Federal Income Tax Information

	Qualified Dividend Income*			Dividends-Received Deduction*
BuyBack Achievers™ Portfolio		100	%		100	%
Dividend Achievers™ Portfolio		100	%		100	%
Financial Preferred Portfolio		100	%		61	%
High Yield Equity Dividend Achievers™ Portfolio		100	%		100	%
International Dividend Achievers™ Portfolio		64	%		0	%

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

49

Trustees and Officers

The Independent Trustees 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, 2015.

Name, Address and Year of Birth 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 During the Past 5 Years
Ronn R. Bagge—1958 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	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).	120	None
Todd J. Barre—1957 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	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.	120	None
Marc M. Kole—1960 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Trustee	Since 2006	Retired. Formerly, Chief Financial Officer, Hope Network (social services) (2008-2012); Assistant Vice President and Controller, Priority Health (health insurance) (2005-2008); Senior Vice President of Finance, United Healthcare (2004-2005); Chief Accounting Officer, Senior Vice President of Finance, Oxford Health Plans (2000-2004); Audit Partner, Arthur Andersen LLP (1996-2000).	120	None
Yung Bong Lim—1964 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Trustee	Since 2013	Managing Partner, Residential Dynamics Group LLC (2008-Present); formerly, Managing Director, Citadel Investment Group, L.L.C. (1999-2007).	120	None
Philip M. Nussbaum—1961 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Trustee	Since 2003	Chairman, Performance Trust Capital Partners (2004-Present).	120	None

* This is the date the Independent 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, 2015, the “Fund Family” consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 67 portfolios advised by the Adviser.

50

Trustees and Officers (continued)

Name, Address and Year of Birth 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 During the Past 5 Years
Gary R. Wicker—1961 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Trustee	Since 2013	Senior Vice President of Global Finance and Chief Financial Officer at RBC Ministries (publishing company) (2013-Present); formerly, Executive Vice President and Chief Financial Officer, Zondervan Publishing (A division of Harper Collins/NewsCorp) (2007-2012); Senior Vice President and Group Controller (2005-2006), Senior Vice President and Chief Financial Officer (2003-2004), Chief Financial Officer (2001-2003), Vice President, Finance and Controller (1999-2001) and Assistant Controller (1997-1999), divisions of The Thomson Corporation (information services provider).	120	None
Donald H. Wilson—1959 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Chairman of the Board and Trustee	Chairman since 2012; Trustee since 2006	Chairman, President and Chief Executive Officer, Community Financial Shares, Inc. and Community Bank—Wheaton/Glen Ellyn (subsidiary) (2013-Present); Chairman and Chief Executive Officer, Stone Pillar Advisors, 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).	120	None

* This is the date the Independent 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, 2015, the “Fund Family” consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 67 portfolios advised by the Adviser.

51

Trustees and Officers (continued)

The Trustee who is an “interested person” (the “Non-Independent Trustee”) 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 the Non-Independent Trustee and the other directorships, if any, held by the Non-Independent Trustee are shown below.

Name, Address and Year of Birth of Non-Independent Trustee	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 Non-Independent Trustees	Other Directorships Held by Non-Independent Trustees During the Past 5 Years
Kevin M. Carome—1956 Invesco Ltd. Two Peachtree Pointe, 1555 Peachtree St., N.E., Suite 1800 Atlanta, GA 30309	Trustee	Since 2010	Senior Managing Director, Secretary and General Counsel, Invesco Ltd. (2006-Present); Director, Invesco Advisers, Inc. (2009-Present); Director, Invesco Finance PLC, INVESCO Funds Group, Inc., and Invesco Holding Company Limited; Director and Executive Vice President, Invesco Finance, Inc., Invesco Group Services, Inc., Invesco Investments (Bermuda) Ltd., Invesco North American Holdings, Inc., and IVZ, Inc. and Invesco Asset Management (Bermuda) Ltd.; Manager, Horizon Flight Works LLC; Director and Secretary, IVZ Bahamas Private Limited; formerly, Senior Vice President, Secretary and General Counsel, Invesco Advisers, 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.	120	None

* This is the date the Non-Independent 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, 2015, the Fund Complex consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 67 portfolios advised by the Adviser.

52

Trustees and Officers (continued)

Name, Address and Year of Birth of Executive Officers	Position(s) Held with Trust	Length of Time Served*	Principal Occupation(s) During Past 5 Years
Andrew Schlossberg—1974 Invesco Management Group, Inc. 11 Greenway Plaza, Suite 1000 Houston, TX 77046	President	Since 2009	President, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2009-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); Managing Director—U.S. Strategy and Marketing (2010-Present) and Principal Executive Officer (2015-Present), Invesco PowerShares Capital Management LLC; Managing Director, U.S. head of business strategy and chief marketing officer for Invesco Ltd. in the United States (2008-Present); and Senior Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser) (2009-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) and Director, Invesco Distributors, Inc. (2012-2015).
Peter Hubbard—1981 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Vice President	Since 2009	Vice President, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2009-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); 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).
David Warren—1957 Invesco Canada Ltd. 5140 Yonge Street Suite 800, Toronto, Ontario M2N 6X7	Vice President	Since 2009	Vice President, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2009-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); Managing Director—Chief Administrative Officer, Americas, Invesco PowerShares Capital Management LLC; Senior Vice President, Invesco Advisers, Inc. (2009-Present); Director, Executive Vice President and Chief Financial Officer, Invesco Inc. (2009-Present); Senior Vice President, Invesco Management Group, Inc. (2007-Present); Director, Executive Vice President and Chief Financial Officer, Invesco Canada Ltd. (formerly, Invesco Trimark Ltd.) and Chief Administrative Officer, North American Retail, Invesco Ltd. (2007-Present); Director, Invesco Canada Holdings Inc. (2002-Present), Invesco Corporate Class Inc., and Invesco Canada Fund Inc.; Director, Invesco Financial Services Ltd. and Trimark Investments Ltd. (2014-Present); formerly, Director, Executive Vice President and Chief Financial Officer, Invesco Canada Ltd. (formerly, Invesco Trimark Ltd.) (2000-2006).
Sheri Morris—1964 Invesco Management Group, Inc. 11 Greenway Plaza, Suite 1000 Houston, TX 77046	Vice President	Since 2012	Vice President, Treasurer and Principal Financial Officer, The Invesco Funds; Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser) (2009-Present) and Vice President, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2012-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); formerly, Treasurer, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust and PowerShares Actively Managed Exchange-Traded Fund Trust (2011-2013); Vice President, Invesco Aim Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc.; Assistant Vice President and Assistant Treasurer, The Invesco Funds and Assistant Vice President, Invesco Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc.

* This is the date the Officers began serving the Trust. Each Officer serves an indefinite term, until his or her successor is elected.

53

Trustees and Officers (continued)

Name, Address and Year of Birth of Executive Officers	Position(s) Held with Trust	Length of Time Served*	Principal Occupation(s) During Past 5 Years
Rudolf E. Reitmann—1971 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Vice President	Since 2013	Vice President, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2013-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); Head of Global Exchange Traded Funds Operations, Invesco PowerShares Capital Management LLC (2013-Present).
Daniel E. Draper—1968 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Vice President	Since 2013	Senior Vice President, Invesco Distributors, Inc. (2014-Present); Vice President, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2013-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); Managing Director, Invesco PowerShares Capital Management LLC (2013-Present); formerly, Managing Director, Credit Suisse Asset Management (2010-2013) and Lyxor Asset Management/Societe Generale (2007-2010).
Steven M. Hill—1964 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Vice President and Treasurer	Since 2013	Vice President and Treasurer of PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2013-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); Head of Global ETF Administration, Invesco PowerShares Capital Management LLC (2011-Present); Principal Financial and Accounting Officer—Investment Pools, Invesco PowerShares Capital Management LLC (2015-Present); formerly, Senior Managing Director and Chief Financial Officer, Destra Capital Management LLC and its subsidiaries (2010-2011); Chief Financial Officer, Destra Investment Trust and Destra Investment Trust II (2010-2011); Senior Managing Director, Claymore Securities, Inc. (2003-2010); and Chief Financial Officer, Claymore sponsored mutual funds (2003-2010).
Christopher Joe—1969 Invesco Management Group, Inc. 11 Greenway Plaza, Suite 1000 Houston, TX 77046	Chief Compliance Officer	Since 2012	Deputy Chief Compliance Officer of Invesco Advisers, Inc. (2014-Present); Chief Compliance Officer of PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2012-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); U.S. Compliance Director, Invesco, Ltd. (2006-Present); formerly, Chief Compliance Officer, Invesco Investment Advisers, LLC (registered investment adviser) (2010-2013).
Anna Paglia—1974 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Secretary	Since 2011	Secretary, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2011-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); Head of Legal, Invesco PowerShares Capital Management LLC (2010-Present); formerly, Partner, K&L Gates LLP (formerly, Bell Boyd & Lloyd LLP) (2007-2010); Associate Counsel at Barclays Global Investors Ltd. (2004-2006).

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 Officers began serving the Trust. Each Officer serves an indefinite term, until his or her successor is elected.

54

Board Considerations Regarding Continuation of Investment Advisory Agreement

At a meeting held on April 16, 2015, the Board of Trustees of the PowerShares Exchange-Traded Fund Trust (the “Trust”), including the Independent Trustees, approved the continuation of the Investment Advisory Agreement between Invesco PowerShares Capital Management LLC (the “Adviser”) and the Trust for the following 51 series (each, a “Fund” and collectively, the “Funds”):

PowerShares Aerospace & Defense Portfolio

PowerShares BuyBack Achievers™ Portfolio

PowerShares Cleantech™ Portfolio

PowerShares Dividend Achievers^TM Portfolio

PowerShares DWA Momentum Portfolio

PowerShares DWA Basic Materials Momentum Portfolio

PowerShares DWA Consumer Cyclicals Momentum Portfolio

PowerShares DWA Consumer Staples Momentum Portfolio

PowerShares DWA Energy Momentum Portfolio

PowerShares DWA Financial Momentum Portfolio

PowerShares DWA Healthcare Momentum Portfolio

PowerShares DWA Industrials Momentum Portfolio

PowerShares DWA NASDAQ Momentum Portfolio

PowerShares DWA Technology Momentum Portfolio

PowerShares DWA Utilities Momentum Portfolio

PowerShares Dynamic Biotechnology & Genome Portfolio

PowerShares Dynamic Building & Construction Portfolio

PowerShares Dynamic Energy Exploration & Production Portfolio

PowerShares Dynamic Food & Beverage Portfolio

PowerShares Dynamic Large Cap Growth Portfolio

PowerShares Dynamic Large Cap Value Portfolio

PowerShares Dynamic Leisure and Entertainment Portfolio

PowerShares Dynamic Market Portfolio

PowerShares Dynamic Media Portfolio

PowerShares Dynamic Networking Portfolio

PowerShares Dynamic Oil & Gas Services Portfolio

PowerShares Dynamic Pharmaceuticals Portfolio

PowerShares Dynamic Retail Portfolio

PowerShares Dynamic Semiconductors Portfolio

PowerShares Dynamic Software Portfolio

PowerShares Financial Preferred Portfolio

PowerShares FTSE RAFI US 1000 Portfolio

PowerShares FTSE RAFI US 1500 Small-Mid Portfolio

PowerShares Fundamental Pure Large Core Portfolio

PowerShares Fundamental Pure Large Growth Portfolio

PowerShares Fundamental Pure Large Value Portfolio

PowerShares Fundamental Pure Mid Core Portfolio

PowerShares Fundamental Pure Mid Growth Portfolio

PowerShares Fundamental Pure Mid Value Portfolio

PowerShares Fundamental Pure Small Core Portfolio

PowerShares Fundamental Pure Small Growth Portfolio

PowerShares Fundamental Pure Small Value Portfolio

PowerShares Global Listed Private Equity Portfolio

PowerShares Golden Dragon China Portfolio

PowerShares High Yield Equity Dividend Achievers ^TM Portfolio

PowerShares International Dividend Achievers^TM Portfolio

PowerShares S&P 500^® High Quality Portfolio

PowerShares Water Resources Portfolio

PowerShares WilderHill Clean Energy Portfolio

PowerShares WilderHill Progressive Energy Portfolio

PowerShares Zacks Micro Cap Portfolio

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 a Fund grows, (v) whether fee levels reflect any possible economies of scale for the benefit of Fund shareholders, (vi) comparisons of services rendered to and amounts paid by 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 staffing, including operational support 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 and/or oversight of execution of portfolio transactions on behalf of the Funds. The Trustees also reviewed information on the performance of the Funds and their underlying indexes for the one-year, three-year, five-year, ten-year and since-inception periods ended December 31, 2014, as applicable, including reports for each of those periods on the correlation and tracking error between each Fund’s performance and the performance of its underlying index, as well as the Adviser’s analysis of the tracking error between PowerShares Global Listed Private Equity Portfolio and its underlying index. In reviewing the tracking error report, the Trustees considered information provided by Ibbotson Associates, a consultant to the Independent Trustees, with respect to general expected tracking error ranges and various explanations for any tracking error. The Trustees noted that for each applicable period the

55

Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)

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, effort and resources 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 advisory fee and net expense ratio, as compared to information compiled by the Adviser from Lipper Inc. databases on the advisory fees and net expense ratios of comparable exchange-traded funds (“ETFs”), open-end (non-ETF) index funds and open-end (non-ETF) actively-managed funds. The Trustees noted that the annual advisory fee charged to each Fund is:

— 0.50% of the Fund’s average daily net assets for each Fund other than PowerShares Dividend Achievers™ Portfolio, PowerShares High Yield Equity Dividend Achievers™ Portfolio, PowerShares International Dividend Achievers™ Portfolio, PowerShares FTSE RAFI US 1000 Portfolio, PowerShares FTSE RAFI US 1500 Small-Mid Portfolio, PowerShares Fundamental Pure Large Core Portfolio, PowerShares Fundamental Pure Large Growth Portfolio, PowerShares Fundamental Pure Large Value Portfolio, PowerShares Fundamental Pure Mid Core Portfolio, PowerShares Fundamental Pure Mid Growth Portfolio, PowerShares Fundamental Pure Mid Value Portfolio, PowerShares Fundamental Pure Small Core Portfolio, PowerShares Fundamental Pure Small Growth Portfolio, PowerShares Fundamental Pure Small Value Portfolio and PowerShares S&P 500^® High Quality Portfolio;

— 0.40% of the Fund’s average daily net assets for each of PowerShares Dividend Achievers™ Portfolio, PowerShares High Yield Equity Dividend Achievers™ Portfolio and PowerShares International Dividend Achievers™ Portfolio; and

— 0.29% of the Fund’s average daily net assets for each of PowerShares FTSE RAFI US 1000 Portfolio, PowerShares FTSE RAFI US 1500 Small-Mid Portfolio, PowerShares Fundamental Pure Large Core Portfolio¹, PowerShares Fundamental Pure Large Growth Portfolio, PowerShares Fundamental Pure Large Value Portfolio, PowerShares Fundamental Pure Mid Core Portfolio¹, PowerShares Fundamental Pure Mid Growth Portfolio, PowerShares Fundamental Pure Mid Value Portfolio, PowerShares Fundamental Pure Small Core Portfolio¹, PowerShares Fundamental Pure Small Growth Portfolio, PowerShares Fundamental Pure Small Value Portfolio and PowerShares S&P 500^® High Quality Portfolio.

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, 2016, as set forth below:

— 0.60%, excluding interest expenses, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses, for each of PowerShares DWA NASDAQ Momentum Portfolio and PowerShares Dynamic Market Portfolio;

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

— 0.39%, excluding interest expenses, offering costs, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses, for each of PowerShares FTSE RAFI US 1000 Portfolio, PowerShares FTSE RAFI US 1500 Small-Mid Portfolio, PowerShares Fundamental Pure Large Core Portfolio², PowerShares Fundamental Pure Large Growth Portfolio, PowerShares Fundamental Pure Large Value Portfolio, PowerShares Fundamental Pure Mid Core Portfolio², PowerShares Fundamental Pure Mid Growth Portfolio, PowerShares Fundamental Pure Mid Value Portfolio, PowerShares Fundamental Pure Small Core Portfolio², PowerShares Fundamental Pure Small Growth Portfolio and PowerShares Fundamental Pure Small Value Portfolio;

— 0.29%, excluding interest expenses, offering costs, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses, for PowerShares S&P 500^® High Quality Portfolio;

¹  The annual management fee for PowerShares Fundamental Pure Large Core Portfolio, PowerShares Fundamental Pure Mid Core Portfolio and PowerShares Fundamental Pure Small Core Portfolio will be reduced to 0.25% of each Fund’s average daily net assets, effective May 22, 2015.

²  The Expense Cap for PowerShares Fundamental Pure Large Core Portfolio, PowerShares Fundamental Pure Mid Core Portfolio and PowerShares Fundamental Pure Small Core Portfolio will be reduced such that annual operating expenses of each Fund will not exceed 0.25% of its average daily net assets, effective May 22, 2015.

56

Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)

— 0.60%, excluding interest expenses, offering costs, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses, for PowerShares DWA Basic Materials Momentum Portfolio, PowerShares DWA Consumer Cyclicals Momentum Portfolio, PowerShares DWA Consumer Staples Momentum Portfolio, PowerShares DWA Energy Momentum Portfolio, PowerShares DWA Financial Momentum Portfolio, PowerShares DWA Healthcare Momentum Portfolio, PowerShares DWA Industrials Momentum Portfolio, PowerShares DWA Technology Momentum Portfolio and PowerShares DWA Utilities Momentum Portfolio; and

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

The Trustees noted that the Adviser represented that it does not serve as the investment adviser to any clients, other than other ETFs also overseen by the Trustees, with comparable investment strategies as the Funds, but that the Adviser provides sub-advisory services to clients with comparable investment strategies as certain of the Funds. The Trustees further noted the Adviser’s explanation with respect to the sub-advisory fees it receives for such services in comparison to the advisory fees charged to the Funds. The Trustees noted that the advisory fees for certain Funds were equal to or lower than the median advisory fees of their ETF and open-end index peer funds as illustrated in the table below. The Trustees also noted that the advisory fees for all of the Funds were lower than the median advisory fees of their open-end actively-managed peer funds.

PowerShares Fund	Equal to/Lower than ETF Median	Equal to/Lower than Open-End Index Fund Median3	Equal to/Lower than Open-End Active Fund Median
PowerShares Aerospace & Defense Portfolio		N/A	X
PowerShares Buyback Achievers Portfolio			X
PowerShares Cleantech Portfolio		N/A	X
PowerShares Dividend Achievers Portfolio		X	X
PowerShares DWA Basic Materials Momentum Portfolio		N/A	X
PowerShares DWA Consumer Cyclicals Momentum Portfolio		N/A	X
PowerShares DWA Consumer Staples Momentum Portfolio	X	N/A	X
PowerShares DWA Energy Momentum Portfolio		N/A	X
PowerShares DWA Financial Momentum Portfolio		N/A	X
PowerShares DWA Healthcare Momentum Portfolio		N/A	X
PowerShares DWA Industrials Momentum Portfolio		N/A	X
PowerShares DWA Momentum Portfolio		X	X
PowerShares DWA NASDAQ Momentum Portfolio		X	X
PowerShares DWA Technology Momentum Portfolio			X
PowerShares DWA Utilities Momentum Portfolio			X
PowerShares Dynamic Biotechnology & Genome Portfolio		N/A	X
PowerShares Dynamic Building & Construction Portfolio		N/A	X
PowerShares Dynamic Energy Exploration & Production Portfolio		N/A	X
PowerShares Dynamic Food & Beverage Portfolio	X	N/A	X
PowerShares Dynamic Large Cap Growth Portfolio			X
PowerShares Dynamic Large Cap Value Portfolio			X
PowerShares Dynamic Leisure and Entertainment Portfolio		N/A	X
PowerShares Dynamic Market Portfolio			X
PowerShares Dynamic Media Portfolio		N/A	X
PowerShares Dynamic Networking Portfolio			X
PowerShares Dynamic Oil & Gas Services Portfolio		N/A	X
PowerShares Dynamic Pharmaceuticals Portfolio		N/A	X
PowerShares Dynamic Retail Portfolio		N/A	X

57

Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)

PowerShares Fund	Equal to/Lower than ETF Median	Equal to/Lower than Open-End Index Fund Median3	Equal to/Lower than Open-End Active Fund Median
PowerShares Dynamic Semiconductors Portfolio			X
PowerShares Dynamic Software Portfolio			X
PowerShares Financial Preferred Portfolio	X	N/A	X
PowerShares FTSE RAFI US 1000 Portfolio			X
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio	X		X
PowerShares Fundamental Pure Large Core Portfolio		X	X
PowerShares Fundamental Pure Large Growth Portfolio		X	X
PowerShares Fundamental Pure Large Value Portfolio			X
PowerShares Fundamental Pure Mid Core Portfolio			X
PowerShares Fundamental Pure Mid Growth Portfolio	X	X	X
PowerShares Fundamental Pure Mid Value Portfolio		X	X
PowerShares Fundamental Pure Small Core Portfolio	X		X
PowerShares Fundamental Pure Small Growth Portfolio		X	X
PowerShares Fundamental Pure Small Value Portfolio	X	X	X
PowerShares Global Listed Private Equity Portfolio	X	N/A	X
PowerShares Golden Dragon China Portfolio	X	N/A	X
PowerShares High Yield Equity Dividend Achievers Portfolio		X	X
PowerShares International Dividend Achievers Portfolio	X	X	X
PowerShares S&P 500 High Quality Portfolio			X
PowerShares Water Resources Portfolio		N/A	X
PowerShares WilderHill Clean Energy Portfolio		N/A	X
PowerShares WilderHill Progressive Energy Portfolio		N/A	X
PowerShares Zacks Micro Cap Portfolio			X

³  The information provided by the Adviser indicated that certain Funds did not have open-end index fund peers. Those Funds have been designated with an “N/A” for not available.

The Trustees determined that the advisory fees were reasonable, noting the nature of the indexes, the distinguishing factors of the Funds, and the administrative, operational and management oversight costs for the Adviser. The Trustees noted that the net expense ratios for certain Funds were equal to or lower than the median net expense ratios of their ETF and open-end index peer funds as illustrated in the table below. The Trustees also noted that the net expense ratios for all of the Funds were lower than the median net expense ratios of their open-end actively-managed peer funds.

PowerShares Fund	Equal to/Lower than ETF Median	Equal to/Lower than Open-End Index Fund Median	Equal to/Lower than Open-End Active Fund Median
PowerShares Aerospace & Defense Portfolio		N/A	X
PowerShares Buyback Achievers Portfolio			X
PowerShares Cleantech Portfolio		N/A	X
PowerShares Dividend Achievers Portfolio		X	X
PowerShares DWA Basic Materials Momentum Portfolio		N/A	X
PowerShares DWA Consumer Cyclicals Momentum Portfolio		N/A	X
PowerShares DWA Consumer Staples Momentum Portfolio		N/A	X
PowerShares DWA Energy Momentum Portfolio		N/A	X
PowerShares DWA Financial Momentum Portfolio		N/A	X

58

Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)

PowerShares Fund	Equal to/Lower than ETF Median	Equal to/Lower than Open-End Index Fund Median	Equal to/Lower than Open-End Active Fund Median
PowerShares DWA Healthcare Momentum Portfolio		N/A	X
PowerShares DWA Industrials Momentum Portfolio		N/A	X
PowerShares DWA Momentum Portfolio		X	X
PowerShares DWA NASDAQ Momentum Portfolio		X	X
PowerShares DWA Technology Momentum Portfolio		X	X
PowerShares DWA Utilities Momentum Portfolio		X	X
PowerShares Dynamic Biotechnology & Genome Portfolio		N/A	X
PowerShares Dynamic Building & Construction Portfolio		N/A	X
PowerShares Dynamic Energy Exploration & Production Portfolio		N/A	X
PowerShares Dynamic Food & Beverage Portfolio		N/A	X
PowerShares Dynamic Large Cap Growth Portfolio			X
PowerShares Dynamic Large Cap Value Portfolio			X
PowerShares Dynamic Leisure and Entertainment Portfolio		N/A	X
PowerShares Dynamic Market Portfolio			X
PowerShares Dynamic Media Portfolio		N/A	X
PowerShares Dynamic Networking Portfolio		X	X
PowerShares Dynamic Oil & Gas Services Portfolio		N/A	X
PowerShares Dynamic Pharmaceuticals Portfolio		N/A	X
PowerShares Dynamic Retail Portfolio		N/A	X
PowerShares Dynamic Semiconductors Portfolio		X	X
PowerShares Dynamic Software Portfolio		X	X
PowerShares Financial Preferred Portfolio	X	N/A	X
PowerShares FTSE RAFI US 1000 Portfolio			X
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio		X	X
PowerShares Fundamental Pure Large Core Portfolio		X	X
PowerShares Fundamental Pure Large Growth Portfolio		X	X
PowerShares Fundamental Pure Large Value Portfolio			X
PowerShares Fundamental Pure Mid Core Portfolio		X	X
PowerShares Fundamental Pure Mid Growth Portfolio	X	X	X
PowerShares Fundamental Pure Mid Value Portfolio		X	X
PowerShares Fundamental Pure Small Core Portfolio		X	X
PowerShares Fundamental Pure Small Growth Portfolio		X	X
PowerShares Fundamental Pure Small Value Portfolio		X	X
PowerShares Global Listed Private Equity Portfolio		N/A	X
PowerShares Golden Dragon China Portfolio	X	N/A	X
PowerShares High Yield Equity Dividend Achievers Portfolio		X	X
PowerShares International Dividend Achievers Portfolio	X	X	X
PowerShares S&P 500 High Quality Portfolio	X	X	X
PowerShares Water Resources Portfolio		N/A	X
PowerShares WilderHill Clean Energy Portfolio		N/A	X
PowerShares WilderHill Progressive Energy Portfolio		N/A	X
PowerShares Zacks Micro Cap Portfolio			X

59

Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)

The Trustees noted that a significant component of the non-advisory fee expenses was the license fees paid by the Funds, and noted 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.

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 overall profitability as well as the estimated profitability to the Adviser from its relationship to each Fund. The Trustees concluded that the overall and estimated profitability to the Adviser was not unreasonable.

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 DWA NASDAQ Momentum 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.

60

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Proxy Voting Policies and Procedures

A description of the Trust’s 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 each Fund 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 Trust files its complete schedule of portfolio holdings for the Funds 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, DC; information on the operation of the Public Reference Room may be obtained by calling (800) SEC-0330.

Frequency Distribution of Discounts and Premiums

A table showing the number of days the market price of each Fund’s shares was greater than the Fund’s net asset value, and the number of days it was less than the Fund’s net asset value (i.e., premium or discount) for the most recently completed calendar year, and the calendar quarters since that year end (or the life of the Fund, if shorter) may be found at the Fund’s website at www.invescopowershares.com.

©2015 Invesco PowerShares Capital Management LLC			P-PS-AR-1
3500 Lacey Road, Suite 700 Downers Grove, IL 60515
invescopowershares.com    800.983.0903		@PowerShares

April 30, 2015

2015 Annual Report to Shareholders

PBE	PowerShares Dynamic Biotechnology & Genome Portfolio
PKB	PowerShares Dynamic Building & Construction Portfolio
PXE	PowerShares Dynamic Energy Exploration & Production Portfolio
PBJ	PowerShares Dynamic Food & Beverage Portfolio
PEJ	PowerShares Dynamic Leisure and Entertainment Portfolio
PBS	PowerShares Dynamic Media Portfolio
PXQ	PowerShares Dynamic Networking Portfolio
PXJ	PowerShares Dynamic Oil & Gas Services Portfolio
PJP	PowerShares Dynamic Pharmaceuticals Portfolio
PMR	PowerShares Dynamic Retail Portfolio
PSI	PowerShares Dynamic Semiconductors Portfolio
PSJ	PowerShares Dynamic Software Portfolio

Table of Contents

The Market Environment	3
Manager’s Analysis	4
Industry Portfolios
Schedules of Investments
PowerShares Dynamic Biotechnology & Genome Portfolio (PBE)	37
PowerShares Dynamic Building & Construction Portfolio (PKB)	38
PowerShares Dynamic Energy Exploration & Production Portfolio (PXE)	39
PowerShares Dynamic Food & Beverage Portfolio (PBJ)	40
PowerShares Dynamic Leisure and Entertainment Portfolio (PEJ)	41
PowerShares Dynamic Media Portfolio (PBS)	42
PowerShares Dynamic Networking Portfolio (PXQ)	43
PowerShares Dynamic Oil & Gas Services Portfolio (PXJ)	44
PowerShares Dynamic Pharmaceuticals Portfolio (PJP)	45
PowerShares Dynamic Retail Portfolio (PMR)	46
PowerShares Dynamic Semiconductors Portfolio (PSI)	47
PowerShares Dynamic Software Portfolio (PSJ)	48
Statements of Assets and Liabilities	50
Statements of Operations	52
Statements of Changes in Net Assets	54
Financial Highlights	58
Notes to Financial Statements	65
Report of Independent Registered Public Accounting Firm	75
Fees and Expenses	76
Tax Information	78
Trustees and Officers	79
Board Considerations Regarding Continuation of Investment Advisory Agreement	84

2

The Market Environment

Domestic Equity

Slow and steady improvement in the US economy and continued low interest rates led the US equity market higher during the fiscal year ended April 30, 2015. As the US economy continued along a slow growth path, the US Federal Reserve steadily reduced its asset purchase program, finally ending all purchases in October 2014. The reporting period began with corporate earnings bouncing back from a weather-related downturn resulting from an unusually harsh winter that negatively affected consumer spending. Stocks generally rallied through the summer of 2014 despite political upheaval in Ukraine and signs of economic sluggishness in China. In mid-September, as investors wrestled with evidence that economic growth appeared to be stronger in the US than in the rest of the world, the price of oil began a sharp and prolonged decline, causing US equities to fall. US equities recovered before the end of calendar year 2014, however. As calendar year 2015 began, investors were generally heartened by positive US economic data, but there was concern that if Greece failed to reach an agreement with the eurozone on a financial bailout plan, the repercussions would be felt more broadly. On balance, however, the general trend for US equities was positive.

3

PBE	Manager’s Analysis
	PowerShares Dynamic Biotechnology & Genome Portfolio (PBE)

As an index fund, the PowerShares Dynamic Biotechnology & Genome Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Dynamic Biotech & Genome Intellidex^SM Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks of biotechnology companies and genome companies that comprise the Index. These companies are engaged principally in the research, development, manufacture, marketing and distribution of various biotechnological products, services and processes, and are companies that benefit significantly from scientific and technological advances in biotechnology and genetic engineering and research.

NYSE Arca, Inc. (the “Index Provider”) compiles, maintains and calculates the Index. Strictly in accordance with its existing guidelines and mandated procedures, the Index Provider includes 30 biotechnology and genome stocks from a universe of the 2,000 largest U.S. stocks (by market capitalization) traded on the NYSE, NYSE MKT and the NASDAQ, after having ranked the stocks based on their capital appreciation potential using a proprietary NYSE Arca Intellidex^SM model. The Index Provider splits stocks in the Biotechnology & Genome Group Universe into quintiles based on market capitalization. Larger stocks are defined by inclusion in the top quintile and smaller stocks are the bottom four quintiles. The 8 top-ranked relatively larger stocks collectively receive 40% of the Index weighting (each stock receives on average a 5% weighting) and the 22 top-ranked relatively smaller stocks collectively receive 60% of the Index weighting (each stock receives on average a 2.73% weighting). The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2015, on a market price basis, the Fund returned 34.28%. On a net asset value (“NAV”) basis, the Fund returned 34.25%. During the same time period, the Index returned 34.51%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period.

During this same time period, the S&P Composite 1500 Biotech Index (the “Benchmark Index”) returned 36.62%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 15 securities. The Fund provided this comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of a benchmark similar to the Index.

The Benchmark Index was selected for its recognition in the marketplace, and its performance comparison is a useful measure

for investors as a representation of the biotech industry market. It is important to note, however, that the Index includes stocks from its Biotechnology & Genome Group Universe of which approximately 90% are considered pharmaceuticals, biotechnology and life sciences, while the remaining 10% of the Index contains stocks in other industry groups including materials, health care equipment & services, and technology hardware & equipment. The Benchmark Index contains 100% biotechnology companies. This Benchmark Index is relevant as a comparison, but the disparity compared to pure biotechnology exposure may produce potentially significant differences in performance when compared to the Fund. Relative to the Benchmark Index, the Fund was most overweight in the life sciences tools & services sub-industry and most underweight in the biotechnology sub-industry during the fiscal year ended April 30, 2015. The majority of the Fund’s underperformance relative to the Benchmark Index during the period can be attributed to an allocation to the life sciences tools & services sub-industry.

For the fiscal year ended April 30, 2015, the biotechnology sub-industry contributed most significantly to the Fund’s return, followed by the specialty chemicals (no longer held) and life sciences tools & services (no longer held) sub-industries, respectively. The health care equipment sub-industry detracted most significantly from the Fund’s return, followed by the pharmaceuticals sub-industry.

Positions that contributed most significantly to the Fund’s return included Idenix Pharmaceuticals, Inc., a biotechnology company (no longer held at fiscal year-end), and Pharmacyclics, Inc., a biotechnology company (portfolio average weight of 3.96%). Positions that detracted most significantly from the Fund’s return included ImmunoGen, Inc., a biotechnology company (no longer held at fiscal year-end), and Arena Pharmaceuticals, Inc., a biotechnology company (no longer held at fiscal year-end).

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2015
Biotechnology	92.6
Pharmaceuticals	5.1
Health Care Equipment	2.3
Money Market Funds Plus Other Assets Less Liabilities	0.0

4

PowerShares Dynamic Biotechnology & Genome Portfolio (PBE) (continued)

Top Ten Fund Holdings (% of the Fund’s Net Assets) as of April 30, 2015
Security
Pharmacyclics, Inc.	6.1
Regeneron Pharmaceuticals, Inc., Class A	5.7
BioMarin Pharmaceutical, Inc.	5.4
Vertex Pharmaceuticals, Inc.	5.3
Amgen, Inc.	5.2
Gilead Sciences, Inc.	5.0
Alexion Pharmaceuticals, Inc.	4.8
Biogen, Inc.	4.7
Dyax Corp.	4.4
Repligen Corp.	3.2
Total	49.8

5

PowerShares Dynamic Biotechnology & Genome Portfolio (PBE) (continued)

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

Fund Performance History as of April 30, 2015

	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			Fund Inception†
Index																Average Annualized			Cumulative
Dynamic Biotech & Genome IntellidexSM Index		34.51	%		34.41	%		142.81	%		22.76	%		178.79	%		14.55	%		281.27	%
S&P Composite 1500 Biotech Index		36.62			41.73			184.72			32.75			312.24			18.44			429.74
Fund
NAV Return		34.25			33.79			139.49			22.07			171.02			14.02			264.10
Market Price Return		34.28			33.87			139.89			22.04			170.73			14.00			263.65

Fund Inception: June 23, 2005

Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2016. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.59%. The Financial Highlights section of the Shareholders Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund

at NAV and Market 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 and Benchmark 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 and Benchmark Index do 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.

^†  Fund, Index and Benchmark Index returns are based on the inception date of the Fund.

6

PKB	Manager’s Analysis
	PowerShares Dynamic Building & Construction Portfolio (PKB)

As an index fund, the PowerShares Dynamic Building & Construction Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Dynamic Building & Construction Intellidex^SM Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks of building and construction companies that comprise the Index. These companies are engaged primarily in providing construction and related engineering services for building and remodeling residential properties, commercial or industrial buildings, or working on large-scale infrastructure projects, such as highways, tunnels, bridges, dams, power lines and airports.

NYSE Arca, Inc. (the “Index Provider”) compiles, maintains and calculates the Index. Strictly in accordance with its existing guidelines and mandated procedures, the Index Provider includes 30 building and construction stocks from a universe of the 2,000 largest U.S. stocks (by market capitalization) traded on the NYSE, NYSE MKT and the NASDAQ, after having ranked companies based on their capital appreciation potential using a proprietary NYSE Arca Intellidex model. The Index Provider splits stocks in the Building & Construction Industry Group Universe into quintiles based on market capitalization. Larger stocks are defined by inclusion in the top quintile and smaller stocks are the bottom four quintiles. The 8 top-ranked relatively larger stocks collectively receive 40% of the Index weighting (each stock receives on average a 5% weighting) and the 22 top-ranked relatively smaller stocks collectively receive 60% of the Index weighting (each stock receives on average a 2.73% weighting). The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2015, on a market price basis, the Fund returned 4.08%. On a net asset value (“NAV”) basis, the Fund returned 4.17%. During the same time period, the Index returned 4.88%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period.

During this same time period, the S&P Composite 1500 Construction & Engineering Index (the “Benchmark Index”) returned (13.56)%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 10 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of another building & construction industry benchmark. The Benchmark Index was also selected for its recognition in the marketplace, and its performance comparison is a useful measure for investors as a representation of the building & construction industry market.

The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an index that employs a modified equal weighting and stock selection methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization.

Relative to the Benchmark Index, the Fund was most overweight in the construction materials sub-industry and most underweight in the construction & engineering sub-industry during the fiscal year ended April 30, 2015. The majority of the Fund’s outperformance relative to the Benchmark Index during that period can be attributed to its allocation among home improvement retail, construction materials, and building products sub-industries.

For the fiscal year ended April 30, 2015, the home improvement retail sub-industry contributed most significantly to the Fund’s return, followed by the building products and construction materials sub-industries, respectively. The diversified support services (no longer held) sub-industry detracted most significantly from the Fund’s return, followed by the construction & engineering and construction machinery & heavy trucks (no longer held) sub-industries, respectively.

Positions that contributed most significantly to the Fund’s return included Lowe’s Cos., Inc., a home improvement retail company (portfolio average weight of 5.25%), and Home Depot, Inc., a home improvement retail company (portfolio average weight of 5.17%). Positions that detracted most significantly from the Fund’s return included Civeo Corp., a diversified support services company (no longer held at fiscal year-end), and Quanta Services, Inc., a construction & engineering company (portfolio average weight of 4.54%).

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2015
Construction & Engineering	21.8
Building Products	16.9
Construction Materials	13.2
Home Improvement Retail	9.4
Forest Products	7.9
Homebuilding	7.8
Industrial Machinery	5.0
Specialty Stores	4.9
Home Furnishings	4.8
Industrial Conglomerates	2.9
Diversified Real Estate Activities	2.8
Distributors	2.6
Money Market Fund Plus Other Assets Less Liabilities	(0.0)

7

PowerShares Dynamic Building & Construction Portfolio (PKB) (continued)

Top Ten Fund Holdings (% of the Fund’s Net Assets) as of April 30, 2015
Security
Fluor Corp.	5.2
Vulcan Materials Co.	5.2
Martin Marietta Materials, Inc.	5.1
Ingersoll-Rand PLC	4.9
Tractor Supply Co.	4.9
Mohawk Industries, Inc.	4.8
Home Depot, Inc. (The)	4.7
Lowe’s Cos., Inc.	4.7
Apogee Enterprises, Inc.	3.2
KBR, Inc.	3.0
Total	45.7

8

PowerShares Dynamic Building & Construction Portfolio (PKB) (continued)

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

Fund Performance History as of April 30, 2015

	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			Fund Inception†
Index																Average Annualized			Cumulative
Dynamic Building & Construction IntellidexSM Index		4.88	%		18.59	%		66.77	%		12.94	%		83.73	%		6.08	%		75.38	%
S&P Composite 1500 Construction & Engineering Index		(13.56	)		4.77			15.02			2.97			15.77			6.61			83.81
Fund
NAV Return		4.17			17.59			62.61			12.04			76.52			5.19			61.73
Market Price Return		4.08			17.66			62.88			12.03			76.45			5.17			61.54

Fund Inception: October 26, 2005

Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2016. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.63%. The Financial Highlights section of the Shareholders Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund

at NAV and Market 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 and Benchmark 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 and Benchmark Index do 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.

^†  Fund, Index and Benchmark Index returns are based on the inception date of the Fund.

9

PXE	Manager’s Analysis
	PowerShares Dynamic Energy Exploration & Production Portfolio (PXE)

As an index fund, the PowerShares Dynamic Energy Exploration & Production Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Dynamic Energy Exploration & Production Intellidex^SM Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks of companies engaged in energy exploration and production that comprise the Index. These companies are engaged principally in exploration, extraction and production of crude oil and natural gas from land-based or offshore wells.

NYSE Arca, Inc. (the “Index Provider”) compiles, maintains and calculates the Index. Strictly in accordance with its existing guidelines and mandated procedures, the Index Provider includes 30 energy exploration and production stocks from the 2,000 largest U.S. stocks (by market capitalization) traded on the NYSE, NYSE MKT and the NASDAQ, after having ranked the stocks for investment potential using a proprietary model. The Index Provider splits stocks in the Energy Exploration & Production Industry Group Universe into quintiles based on market capitalization. Larger stocks are defined by inclusion in the top quintile and smaller stocks are the bottom four quintiles. The 8 top-ranked relatively larger stocks collectively receive 40% of the Index weighting (each stock receives on average a 5% weighting) and the 22 top-ranked relatively smaller stocks which receive 60% of the Index weighting (each stock receives on average a 2.73% weighting). The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2015, on a market price basis, the Fund returned (14.54)%. On a net asset value (“NAV”) basis, the Fund returned (14.51)%. During the same time period, the Index returned (13.93)%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period.

During this same time period, the S&P Composite 1500 Oil & Gas Exploration & Production Index (the “Benchmark Index”) returned (13.48)%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 40 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of a similar energy exploration & production industry benchmark. The Benchmark Index was also selected for its recognition in the marketplace, and its shared exposure to the oil & gas exploration & production industry.

The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an Index that employs a modified

equal weighting and stock selection methodology whereas the indexes select and weight stocks based on market capitalization.

Relative to the Benchmark Index, the Fund was most overweight in the oil & gas refining & marketing sub-industry and most underweight in the oil & gas exploration & production sub-industry during the fiscal year ended April 30, 2015. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to stock selection within the oil & gas exploration & production sub-industry.

For the fiscal year ended April 30, 2015, the oil & gas refining & marketing sub-industry was the only contributing sub-industry. The oil & gas exploration & production sub-industry detracted most significantly from the Fund’s return, followed by the integrated oil & gas and gas utilities (no longer held) sub-industries, respectively.

Positions that contributed most significantly to the Fund’s return included Devon Energy Corp., an oil & gas exploration & production company (portfolio average weight of 2.54%), and Tesoro Corp., an oil & gas refining & marketing company (portfolio average weight of 1.94%). Positions that detracted most significantly from the Fund’s return included W&T Offshore, Inc., an oil & gas exploration & production company (no longer held at fiscal year-end), and Stone Energy Corp., an oil & gas exploration & production company (no longer held at fiscal year-end).

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2015
Oil & Gas Exploration & Production	63.3
Oil & Gas Refining & Marketing	31.8
Integrated Oil & Gas	4.9
Money Market Fund Plus Other Assets Less Liabilities	(0.0)
Top Ten Fund Holdings (% of the Fund’s Net Assets) as of April 30, 2015
Security
Devon Energy Corp.	5.2
EOG Resources, Inc.	5.2
ConocoPhillips	4.9
Apache Corp.	4.9
Occidental Petroleum Corp.	4.9
Chesapeake Energy Corp.	4.5
Marathon Petroleum Corp.	4.4
Valero Energy Corp.	4.4
EP Energy Corp., Class A	3.4
Rosetta Resources, Inc.	3.3
Total	45.1

10

PowerShares Dynamic Energy Exploration & Production Portfolio (PXE) (continued)

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

Fund Performance History as of April 30, 2015

	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			Fund Inception†
Index																Average Annualized			Cumulative
Dynamic Energy Exploration & Production IntellidexSM Index		(13.93	)%		11.87	%		40.02	%		14.07	%		93.15	%		9.24	%		131.85	%
S&P Composite 1500 Oil & Gas Exploration & Production Index		(13.48	)		6.43			20.57			5.05			27.92			6.91			88.79
Fund
NAV Return		(14.51	)		11.03			36.88			13.22			86.07			8.53			117.90
Market Price Return		(14.54	)		11.04			36.89			13.22			86.02			8.52			117.57

Fund Inception: October 26, 2005

Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2016. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.64%. The Financial Highlights section of the Shareholders Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund

at NAV and Market 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 and Benchmark 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 and Benchmark Index do 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.

^†  Fund, Index and Benchmark Index returns are based on the inception date of the Fund.

11

PBJ	Manager’s Analysis
	PowerShares Dynamic Food & Beverage Portfolio (PBJ)

As an index fund, the PowerShares Dynamic Food & Beverage Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Dynamic Food & Beverage Intellidex^SM Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks of food and beverage companies that comprise the Index. These companies are engaged principally in the manufacture, sale or distribution of food and beverage products, agricultural products and products related to the development of new food technologies.

NYSE Arca, Inc. (the “Index Provider”) compiles, maintains and calculates the Index. Strictly in accordance with its existing guidelines and mandated procedures, the Index Provider includes 30 food and beverage stocks from a universe of the 2,000 largest U.S. stocks (by market capitalization) traded on the NYSE, NYSE MKT and the NASDAQ after having ranked the stocks based on their capital appreciation potential using a proprietary NYSE Arca Intellidex^SM model. The Index Provider splits stocks in the food & Beverage Group Universe into quintiles based on market capitalization. Larger stocks are defined by inclusion in the top quintile and smaller stocks are the bottom four quintiles. The 8 top-ranked relatively larger stocks collectively receive 40% of the Index weighting (each stock receives on average a 5% weighting) and the 22 top-ranked relatively smaller stocks collectively receive 60% of the Index weighting (each stock receives on average a 2.73% weighting). The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2015, on a market price basis, the Fund returned 18.13%. On a net asset value (“NAV”) basis, the Fund returned 18.25%. During the same time period, the Index returned 19.00%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period.

During this same time period, the S&P Composite 1500 Food Beverage & Tobacco Index (the “Benchmark Index”) returned 14.39%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 45 securities. The Fund provided this comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of a similar food & beverage benchmark.

The Benchmark Index was selected for its recognition in the marketplace, and its performance comparison is a useful measure for investors as a broad representation of the food & beverage industry.

The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an Index that employs a modified equal weighting and stock selection methodology whereas the Benchmark Index selects and weights stocks based on market capitalization. More specifically, the Fund benefited from exposure to the restaurant sub-industry and being overweight in the packaged foods & meats sub-industry during the fiscal year ended April 30, 2015. The Fund was most underweight in the tobacco (no longer held) sub-industry during the period. The majority of the Fund’s outperformance relative to the Benchmark Index during the period can be attributed to allocation among and stock selection within the soft drinks sub-industry as well as stock selection within the packaged foods & meats sub-industry.

For the fiscal year ended April 30, 2015, the packaged foods & meats sub-industry contributed most significantly to the Fund’s return, followed by the soft drinks and agricultural products sub-industries, respectively. The food retail sub-industry was the only detracting sub-industry.

Positions that contributed most significantly to the Fund’s return included Kroger Co. (The), a food retail company (portfolio average weight of 5.29%), and Monster Beverage Corp., a soft drinks company (portfolio average weight of 2.78%). Positions that detracted most significantly from the Fund’s return included Whole Foods Market, Inc., a food retail company (no longer held at fiscal year-end), and Natural Grocers by Vitamin Cottage, Inc., a food retail company (no longer held at fiscal year-end).

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2015
Packaged Foods & Meats	38.5
Agricultural Products	13.4
Food Retail	12.4
Food Distributors	10.4
Restaurants	10.2
Soft Drinks	10.0
Brewers	5.1
Money Market Fund Plus Other Assets Less Liabilities	0.0

12

PowerShares Dynamic Food & Beverage Portfolio (PBJ) (continued)

Top Ten Fund Holdings (% of the Fund’s Net Assets) as of April 30, 2015
Security
Kraft Foods Group, Inc.	6.6
Starbucks Corp.	5.3
General Mills, Inc.	5.1
Archer-Daniels-Midland Co.	5.1
Kellogg Co.	4.9
Kroger Co. (The)	4.8
PepsiCo, Inc.	4.8
Sysco Corp.	4.7
Calavo Growers, Inc.	3.3
Cal-Maine Foods, Inc., Class A	3.2
Total	47.8

13

PowerShares Dynamic Food & Beverage Portfolio (PBJ) (continued)

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

Fund Performance History as of April 30, 2015

	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			Fund Inception†
Index																Average Annualized			Cumulative
Index Dynamic Food & Beverage IntellidexSM Index		19.00	%		19.05	%		68.72	%		16.66	%		116.09	%		10.20	%		160.46	%
S&P Composite 1500 Food Beverage & Tobacco Index		14.39			14.44			49.88			16.93			118.61			12.88			229.91
Fund
NAV Return		18.25			18.26			65.38			15.87			108.84			9.47			143.81
Market Price Return		18.13			18.23			65.28			15.84			108.57			9.46			143.65

Fund Inception: June 23, 2005

Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2016. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.61%. The Financial Highlights section of the Shareholders Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund

at NAV and Market 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 and Benchmark 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 and Benchmark Index do 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.

^†  Fund, Index and Benchmark Index returns are based on the inception date of the Fund.

14

PEJ	Manager’s Analysis
	PowerShares Dynamic Leisure and Entertainment Portfolio (PEJ)

As an index fund, the PowerShares Dynamic Leisure and Entertainment Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Dynamic Leisure & Entertainment Intellidex^SM Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks of leisure companies and entertainment companies that comprise the Index. These companies are engaged principally in the design, production or distribution of goods or services in the leisure and entertainment industries.

NYSE Arca, Inc. (or the “Index Provider”) compiles, maintains and calculates the Index. Strictly in accordance with its existing guidelines and mandated procedures, the Index Provider includes 30 leisure and entertainment stocks from a universe of the 2,000 largest U.S. stocks (by market capitalization) traded on the NYSE, NYSE MKT and the NASDAQ, after having ranked the stocks based on their capital appreciation potential using a proprietary NYSE Arca Intellidex^SM model. The Index Provider splits stocks in the Leisure and Entertainment Group Universe into quintiles based on market capitalization. Larger stocks are defined by inclusion in the top quintile and smaller stocks are the bottom four quintiles. The 8 top-ranked relatively larger stocks collectively receive 40% of the Index weighting (each stock receives on average a 5% weighting) and the 22 top-ranked relatively smaller stocks collectively receive 60% of the Index weighting (each stock receives on average a 2.73% weighting). The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2015, on a market price basis, the Fund returned 13.47%. On a net asset value (“NAV”) basis, the Fund returned 13.47%. During the same time period, the Index returned 14.33%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period.

During this same time period, the S&P Composite 1500 Hotels, Restaurants & Leisure Index (the “Benchmark Index”) returned 15.01%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 40 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to other indices in the leisure & entertainment industry.

The Benchmark Index was selected for its recognition in the marketplace, and its performance comparison is a useful measure for investors as a broad representation of the leisure & entertainment industry.

The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an Index that employs a modified

equal weighting and stock selection methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization.

Relative to the Benchmark Index, the Fund was most overweight in the movies & entertainment sub-industry and most underweight in the restaurants sub-industry during the fiscal year ended April 30, 2015. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to allocation among and stock selection within restaurants, casinos & gaming, and leisure facilities sub-industries.

For the fiscal year ended April 30, 2015, the hotels resorts & cruise lines sub-industry contributed most significantly to the Fund’s return, followed by the restaurants and movies & entertainment sub-industries, respectively. The casinos & gaming sub-industry detracted most significantly from the Fund’s return, followed by the airlines and broadcasting (no longer held) sub-industries, respectively.

Positions that contributed most significantly to the Fund’s return included Walt Disney Co. (The), a movies & entertainment company (portfolio average weight of 5.06%), and Jack in the Box, Inc., a restaurants company (portfolio average weight of 2.89%). Positions that detracted most significantly from the Fund’s return included Las Vegas Sands Corp., a casinos & gaming company (no longer held at fiscal year-end), and Wynn Resorts Ltd., a casinos & gaming company (no longer held at fiscal year-end).

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2015
Restaurants	33.4
Airlines	31.9
Hotels, Resorts & Cruise Lines	15.2
Movies & Entertainment	7.8
Cable & Satellite	3.3
Internet Retail	2.9
Leisure Facilities	2.8
Casinos & Gaming	2.8
Money Market Fund Plus Other Assets Less Liabilities	(0.1)

15

PowerShares Dynamic Leisure and Entertainment Portfolio (PEJ) (continued)

Top Ten Fund Holdings (% of the Fund’s Net Assets) as of April 30, 2015
Security
Starbucks Corp.	5.5
Walt Disney Co. (The)	5.4
American Airlines Group, Inc.	5.2
Delta Air Lines, Inc.	5.2
Marriott International, Inc., Class A	5.0
Southwest Airlines Co.	4.8
United Continental Holdings, Inc.	4.7
Royal Caribbean Cruises Ltd.	4.6
Hawaiian Holdings, Inc.	3.5
JetBlue Airways Corp.	3.4
Total	47.3

16

PowerShares Dynamic Leisure and Entertainment Portfolio (PEJ) (continued)

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

Fund Performance History as of April 30, 2015

	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			Fund Inception†
Index																Average Annualized			Cumulative
Dynamic Leisure & Entertainment IntellidexSM Index		14.33	%		19.66	%		71.35	%		18.84	%		137.06	%		11.25	%		185.84	%
S&P Composite 1500 Hotels, Restaurants & Leisure Index		15.01			12.55			42.56			15.77			107.93			11.76			198.97
Fund
NAV Return		13.47			18.74			67.40			17.94			128.18			10.58			169.41
Market Price Return		13.47			18.69			67.20			17.90			127.85			10.58			169.42

Fund Inception: June 23, 2005

Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2016. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.63%. The Financial Highlights section of the Shareholders Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund

at NAV and Market 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 and Benchmark 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 and Benchmark Index do 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.

^†  Fund, Index and Benchmark Index returns are based on the inception date of the Fund.

17

PBS	Manager’s Analysis
	PowerShares Dynamic Media Portfolio (PBS)

As an index fund, the PowerShares Dynamic Media Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Dynamic Media Intellidex^SM Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks of media companies that comprise the Index. These companies are engaged principally in the development, production, sale and distribution of goods or services used in the media industry.

NYSE Arca, Inc. (the “Index Provider”) compiles, maintains and calculates the Index. Strictly in accordance with its existing guidelines and mandated procedures, the Index Provider includes 30 media stocks from a universe of the 2,000 largest U.S. stocks (by market capitalization) traded on the NYSE, NYSE MKT and the NASDAQ. NYSE Arca, Inc., after having ranked the stocks based on their capital appreciation potential using a proprietary NYSE Arca Intellidex^SM model. The Index Provider splits stocks in the Media Group Universe into quintiles based on market capitalization. Larger stocks are defined by inclusion in the top quintile and smaller stocks are the bottom four quintiles. The 8 top-ranked relatively larger stocks collectively receive 40% of the Index weighting (each stock receives on average a 5% weighting) and the 22 top-ranked relatively smaller stocks collectively receive 60% of the Index weighting (each stock receives on average a 2.73% weighting). The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2015, on a market price basis, the Fund returned 13.09%. On a net asset value (“NAV”) basis, the Fund returned 13.04%. During the same time period, the Index returned 13.77%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period.

During this same time period, the S&P Composite 1500 Media Index (the “Benchmark Index”) returned 17.42%. The S&P Composite 1500 Media Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 30 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of a media industry benchmark.

The Benchmark Index was selected for its recognition in the marketplace, and its performance comparison is a useful measure for investors as a general representation of the media industry.

The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an Index that employs a modified

equal weighting and stock selection methodology whereas the Benchmark Index selects and weights stocks based on market capitalization.

Relative to the Benchmark Index, the Fund was most overweight in the internet software & services sub-industry and most underweight in the movies & entertainment sub-industry during the fiscal year ended April 30, 2015. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to allocation among internet software & services and IT consulting & other services (no longer held) sub-industries, as well as allocation to and stock selection within the movies & entertainment sub-industry.

For the fiscal year ended April 30, 2015, the cable & satellite sub-industry contributed most significantly to the Fund’s return, followed by the movies & entertainment and advertising sub-industries, respectively. The IT consulting & other services (no longer held) sub-industry detracted most significantly from the Fund’s return, followed by the research & consulting services and internet retail (no longer held) sub-industries, respectively.

Positions that contributed most significantly to the Fund’s return included Walt Disney Co., a movies & entertainment company (portfolio average weight of 5.17%), and Facebook, Inc., Class A, an internet software & services company (portfolio average weight of 5.17%). Positions that detracted most significantly from the Fund’s return included Twitter, Inc., an internet software & services company (no longer held at fiscal year-end), and Cumulus Media, Inc., Class A, a broadcasting & cable TV company (no longer held at fiscal year-end).

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2015
Cable & Satellite	26.3
Movies & Entertainment	15.2
Internet Software & Services	15.0
Publishing	13.4
Advertising	7.8
Broadcasting	6.0
Catalog Retail	5.1
Research & Consulting Services	2.9
Data Processing & Outsourced Services	2.9
Specialized Finance	2.7
Specialized REITs	2.7
Money Market Fund Plus Other Assets Less Liabilities	(0.0)

18

PowerShares Dynamic Media Portfolio (PBS) (continued)

Top Ten Fund Holdings (% of the Fund’s Net Assets) as of April 30, 2015
Security
Walt Disney Co. (The)	5.2
Time Warner, Inc.	5.1
DIRECTV	5.1
Time Warner Cable, Inc.	5.0
Facebook, Inc., Class A	5.0
Twenty-First Century Fox, Inc., Class A	4.8
LinkedIn Corp., Class A	4.7
DISH Network Corp., Class A	4.5
Starz, Class A	3.2
E.W. Scripps Co. (The), Class A	3.1
Total	45.7

19

PowerShares Dynamic Media Portfolio (PBS) (continued)

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

Fund Performance History as of April 30, 2015

	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			Fund Inception†
Index																Average Annualized			Cumulative
Dynamic Media IntellidexSM Index		13.77	%		23.35	%		87.68	%		15.88	%		108.93	%		7.39	%		101.90	%
S&P Composite 1500 Media Index		17.42			27.34			106.49			22.38			174.51			11.08			181.52
Fund
NAV Return		13.04			22.44			83.57			15.03			101.41			6.77			90.60
Market Price Return		13.09			22.43			83.50			14.99			101.04			6.76			90.52

Fund Inception: June 23, 2005

Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2016. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.62%. The Financial Highlights section of the Shareholders Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund

at NAV and Market 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 and Benchmark 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 and Benchmark Index do 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.

^†  Fund, Index and Benchmark Index returns are based on the inception date of the Fund.

20

PXQ	Manager’s Analysis
	PowerShares Dynamic Networking Portfolio (PXQ)

As an index fund, the PowerShares Dynamic Networking Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Dynamic Networking Intellidex^SM Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks of networking companies that comprise the Index. These companies are engaged principally in the development, manufacture, sale or distribution of products, services or technologies that support the flow of electronic information, including voice, data, images and commercial transactions.

NYSE Arca, Inc. (the “Index Provider”) compiles, maintains and calculates the Index. Strictly in accordance with its existing guidelines and mandated procedures, the Index Provider includes 30 common stocks of networking companies in the Index principally on the basis of their capital appreciation potential that NYSE Arca identifies pursuant to a proprietary selection methodology. The Index Provider includes networking stocks from the 2,000 largest U.S. stocks (by market capitalization) traded on the NYSE, NYSE MKT and the NASDAQ, after having ranked the stocks for investment potential using a proprietary model. The Index Provider splits stocks in the Networking Group Universe into quintiles based on market capitalization. Larger stocks are defined by inclusion in the top quintile and smaller stocks are the bottom four quintiles. The 8 top-ranked relatively larger stocks collectively receive 40% of the Index weighting (each stock receives on average a 5% weighting) and the 22 top-ranked relatively smaller stocks collectively receive 60% of the Index weighting (each stock receives on average a 2.73% weighting). The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2015, on a market price basis, the Fund returned 17.48%. On a net asset value (“NAV”) basis, the Fund returned 17.47%. During the same time period, the Index returned 18.25%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period.

During this same time period, the S&P Composite 1500 Communications Equipment Index (the “Benchmark Index”) returned 7.23%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 20 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of a similar networking industry benchmark.

The Benchmark Index was selected for its recognition in the marketplace, and its exposure to the communications equipment

industry. These reasons make its performance relevant when comparing to the Fund’s performance. The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an Index that employs a modified equal weighting and stock selection methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization.

Relative to the Benchmark Index, the Fund was most overweight in the systems software sub-industry and most underweight in the communications equipment sub-industry during the fiscal year ended April 30, 2015. The majority of the Fund’s outperformance relative to the Benchmark Index during that period can be attributed to allocation among the systems software sub-industry.

For the fiscal year ended April 30, 2015, the systems software sub-industry contributed most significantly to the Fund’s return, followed by the communications equipment and semiconductors sub-industries, respectively. The consumer electronics sub-industry detracted most significantly from the Fund’s return, followed by the technology hardware, storage & peripherals sub-industry.

Positions that contributed most significantly to the Fund’s return included Qualys, Inc., a systems software company (portfolio average weight of 2.97%), and Palo Alto Networks, Inc., a communications equipment company (portfolio average weight of 3.52%). Positions that detracted most significantly from the Fund’s return included Sonus Networks, Inc., a communications equipment company (portfolio average weight of 2.51%), and Finisar Corp., a communications equipment company (no longer held at fiscal year-end).

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2015
Communications Equipment	44.4
Systems Software	19.3
Application Software	10.7
Technology Hardware, Storage & Peripherals	7.6
Electronic Components	7.5
Consumer Electronics	4.6
Internet Software & Services	3.3
Semiconductors	2.6
Money Market Fund Plus Other Assets Less Liabilities	0.0

21

PowerShares Dynamic Networking Portfolio (PXQ) (continued)

Top Ten Fund Holdings (% of the Fund’s Net Assets) as of April 30, 2015
Security
Juniper Networks, Inc.	5.5
Citrix Systems, Inc.	5.3
Palo Alto Networks, Inc.	5.2
Amphenol Corp., Class A	4.9
Cisco Systems, Inc.	4.9
CA, Inc.	4.9
Apple, Inc.	4.9
Garmin Ltd.	4.6
LogMeIn, Inc.	3.3
ARRIS Group, Inc.	3.1
Total	46.6

22

PowerShares Dynamic Networking Portfolio (PXQ) (continued)

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

Fund Performance History as of April 30, 2015

	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			Fund Inception†
Index																Average Annualized			Cumulative
Dynamic Networking IntellidexSM Index		18.25	%		10.91	%		36.43	%		12.80	%		82.63	%		10.40	%		165.00	%
S&P Composite 1500 Communications Equipment Index		7.23			9.66			31.86			6.87			39.42			4.87			59.74
Fund
NAV Return		17.47			10.12			33.52			12.00			76.23			9.67			148.33
Market Price Return		17.48			10.15			33.63			11.96			75.93			9.67			148.26

Fund Inception: June 23, 2005

Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2016. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.82% and the net annual operating expense ratio was indicated as 0.63%. The Financial Highlights section of the Shareholders Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that

dividends and capital gain distributions have been reinvested in the Fund at NAV and Market 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 and Benchmark 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 and Benchmark Index do 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.

^†  Fund, Index and Benchmark Index returns are based on the inception date of the Fund.

23

PXJ	Manager’s Analysis
	PowerShares Dynamic Oil & Gas Services Portfolio (PXJ)

As an index fund, the PowerShares Dynamic Oil & Gas Services Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Dynamic Oil Services Intellidex^SM Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks of companies that assist in the production, processing and distribution of oil and gas that comprise the Index. These companies are engaged in the drilling of oil and gas wells; manufacturing oil and gas field machinery and equipment; or providing services to the oil and gas industry, such as well analysis, platform and pipeline engineering and construction, logistics and transportation services, oil and gas well emergency management and geophysical data acquisition and processing.

NYSE Arca, Inc. (the “Index Provider”) compiles, maintains and calculates the Index. Strictly in accordance with its existing guidelines and mandated procedures, the Index Provider includes 30 common stocks of oil and gas services companies in the Index principally on the basis of their capital appreciation potential that NYSE Arca identifies pursuant to a proprietary selection methodology. The Index Provider includes stocks of companies that provide support for oil and gas operations from the 2,000 largest U.S. stocks (by market capitalization) traded on the NYSE, NYSE MKT and the NASDAQ, after having ranked the stocks for investment potential using a proprietary model. The Index Provider splits stocks in the Oil Services Industry Group Universe into quintiles based on market capitalization. Larger stocks are defined by inclusion in the top quintile and smaller stocks are the bottom four quintiles. The 8 top-ranked relatively larger stocks collectively receive 40% of the Index weighting (each stock receives on average a 5% weighting) and the 22 top-ranked relatively smaller stocks collectively receive 60% of the Index weighting (each stock receives on average a 2.73% weighting). The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2015, on a market price basis, the Fund returned (31.61)%. On a net asset value (“NAV”) basis, the Fund returned (31.67)%. During the same time period, the Index returned (31.16)%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period.

During this same time period, the S&P Composite 1500 Energy Equipment & Services Index (the “Benchmark Index”) returned (17.52)%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 40 securities. The Fund provided this additional comparative benchmark to help investors better understand how

the investment results of the Fund compare to the performance of a similar oil & gas services industry benchmark.

The Benchmark Index was selected for its recognition in the marketplace, and its performance comparison is a useful measure for investors as a broad representation of the oil & gas services industry.

The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an Index that employs a modified equal weighting and stock selection methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization.

Relative to the Benchmark Index, the Fund was most overweight in the oil & gas drilling sub-industry and most underweight in the oil & gas equipment & services sub-industry during the fiscal year ended April 30, 2015. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to stock selection within the oil & gas equipment & services sub-industry.

For the fiscal year ended April 30, 2015, the oil & gas storage & transportation sub-industry was the only contributing sub-industry. The oil & gas equipment & services sub-industry detracted most significantly from the Fund’s return, followed by the oil & gas drilling and trading companies & distributors (no longer held) sub-industries, respectively.

Positions that contributed most significantly to the Fund’s return included Navigator Holdings Ltd., an oil & gas storage & transportation company (portfolio average weight of 0.48%), and C&J Energy Services Ltd., an oil & gas equipment & services company (portfolio average weight of 1.98%). Positions that detracted most significantly from the Fund’s return included Key Energy Services, Inc., an oil & gas equipment & services company (no longer held at fiscal year-end), and Transocean Ltd., an oil & gas drilling company (portfolio average weight of 4.37%).

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2015
Oil & Gas Equipment & Services	69.6
Oil & Gas Drilling	24.9
Oil & Gas Storage & Transportation	5.5
Money Market Fund Plus Other Assets Less Liabilities	(0.0)

24

PowerShares Dynamic Oil & Gas Services Portfolio (PXJ) (continued)

Top Ten Fund Holdings (% of the Fund’s Net Assets) as of April 30, 2015
Security
Cameron International Corp.	5.2
Helmerich & Payne, Inc.	5.2
Halliburton Co.	5.1
Schlumberger Ltd.	5.0
FMC Technologies, Inc.	5.0
Baker Hughes, Inc.	4.9
Dresser-Rand Group, Inc.	4.6
National Oilwell Varco, Inc.	4.5
Nabors Industries Ltd.	3.2
C&J Energy Services Ltd.	3.1
Total	45.8

25

PowerShares Dynamic Oil & Gas Services Portfolio (PXJ) (continued)

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

Fund Performance History as of April 30, 2015

	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			Fund Inception†
Index																Average Annualized			Cumulative
Dynamic Oil Services IntellidexSM Index		(31.16	)%		(1.40	)%		(4.13	)%		2.09	%		10.90	%		2.42	%		25.57	%
S&P Composite 1500 Energy Equipment & Services Index		(17.52	)		4.16			13.01			5.50			30.71			5.79			70.86
Fund
NAV Return		(31.67	)		(2.08	)		(6.10	)		1.37			7.06			1.80			18.53
Market Price Return		(31.61	)		(2.06	)		(6.05	)		1.40			7.18			1.81			18.59

Fund Inception: October 26, 2005

Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.61%. The Financial Highlights section of the Shareholders Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market 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 and Benchmark 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 and Benchmark Index do 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.

^†  Fund, Index and Benchmark Index returns are based on the inception date of the Fund.

26

PJP	Manager’s Analysis
	PowerShares Dynamic Pharmaceuticals Portfolio (PJP)

As an index fund, the PowerShares Dynamic Pharmaceuticals Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Dynamic Pharmaceutical Intellidex^SM Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks of pharmaceutical companies that comprise the Index. These companies are engaged principally in the research, development, manufacture, sale or distribution of pharmaceuticals and drugs of all types.

NYSE Arca, Inc. (or the “Index Provider”) compiles, maintains and calculates the Index. Strictly in accordance with its existing guidelines and mandated procedures, the Index Provider includes 30 pharmaceuticals stocks from a universe of the 2,000 largest U.S. stocks (by market capitalization) traded on the NYSE, NYSE MKT and the NASDAQ after having ranked the stocks based on their capital appreciation potential using a proprietary NYSE Arca Intellidex^SM model. The Index Provider splits stocks in the Pharmaceutical Group Universe into quintiles based on market capitalization. Larger stocks are defined by inclusion in the top quintile and smaller stocks are the bottom four quintiles. The 8 top-ranked relatively larger stocks collectively receive 40% of the Index weighting (each stock receives on average a 5% weighting) and the 22 top-ranked relatively smaller stocks collectively receive 60% of the Index weighting (each stock receives on average a 2.73% weighting). The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2015, on a market price basis, the Fund returned 32.97%. On a net asset value (“NAV”) basis, the Fund returned 32.95%. During the same time period, the Index returned 33.73%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period.

During this same time period, the S&P Composite 1500 Pharmaceuticals Index (the “Benchmark Index”) returned 16.97%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 20 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of a similar pharmaceuticals industry benchmark.

The Benchmark Index was selected for its recognition in the marketplace, and its performance comparison is a useful measure for investors as a general representation of the pharmaceuticals industry.

The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an Index that employs a modified

equal weighting and stock selection methodology whereas the Benchmark Index selects and weights stocks based on market capitalization.

Relative to the Index, the Fund was most overweight in the biotechnology sub-industry and most underweight in the pharmaceuticals sub-industry during the fiscal year ended April 30, 2015. The majority of the Fund’s outperformance relative to the Benchmark Index during that period can be attributed to stock selection within the pharmaceuticals sub-industry.

For the fiscal year ended April 30, 2015, the pharmaceuticals sub-industry contributed most significantly to the Fund’s return, followed by the biotechnology and health care equipment sub-industries, respectively. There were no detracting sub-industries.

Positions that contributed most significantly to the Fund’s return included Auxilium Pharmaceuticals, Inc., a pharmaceuticals company (no longer held at fiscal year-end), and Hospira, Inc., a pharmaceuticals company (portfolio average weight of 3.21%). Positions that detracted most significantly from the Fund’s return included BioDelivery Sciences International, Inc., a pharmaceuticals company (portfolio average weight of 1.84%), and Omeros Corp., a pharmaceuticals company (portfolio average weight of 0.59%).

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2015
Pharmaceuticals	65.7
Biotechnology	27.7
Health Care Equipment	6.6
Money Market Funds Plus Other Assets Less Liabilities	(0.0)
Top Ten Fund Holdings (% of the Fund’s Net Assets) as of April 30, 2015
Security
Bristol-Myers Squibb Co.	5.6
Merck & Co., Inc.	5.4
Amgen, Inc.	5.3
Pfizer, Inc.	5.3
Gilead Sciences, Inc.	5.2
Johnson & Johnson	5.2
Biogen, Inc.	4.9
Actavis PLC	4.8
Ligand Pharmaceuticals, Inc.	4.7
Celgene Corp.	4.7
Total	51.1

27

PowerShares Dynamic Pharmaceuticals Portfolio (PJP) (continued)

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

Fund Performance History as of April 30, 2015

	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			Fund Inception†
Index																Average Annualized			Cumulative
Dynamic Pharmaceutical IntellidexSM Index		33.73	%		35.56	%		149.10	%		33.16	%		318.70	%		19.69	%		487.74	%
S&P Composite 1500 Pharmaceuticals Index		16.97			24.12			91.20			19.74			146.13			10.40			165.07
Fund
NAV Return		32.95			34.72			144.49			32.32			305.61			18.95			452.79
Market Price Return		32.97			34.70			144.40			32.31			305.53			18.95			452.78

Fund Inception: June 23, 2005

Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2016. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.58%. The Financial Highlights section of the Shareholders Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund

at NAV and Market 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 and Benchmark 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 and Benchmark Index do 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.

^†  Fund, Index and Benchmark Index returns are based on the inception date of the Fund.

28

PMR	Manager’s Analysis
	PowerShares Dynamic Retail Portfolio (PMR)

As an index fund, the PowerShares Dynamic Retail Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Dynamic Retail Intellidex^SM Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks of retail companies that comprise the Index. These companies are engaged principally in operating general merchandise stores such as department stores, discount stores, warehouse clubs and superstores; specialty stores, including apparel, electronics, accessories and footwear stores; and home improvement and home furnishings stores.

NYSE Arca, Inc. (the “Index Provider”) compiles, maintains and calculates the Index. Strictly in accordance with its existing guidelines and mandated procedures, the Index Provider includes 30 retail stocks from a universe of the 2,000 largest U.S. stocks (by market capitalization) traded on the NYSE, NYSE MKT and the NASDAQ after having ranked the stocks based on their capital appreciation potential using a proprietary NYSE Arca Intellidex^SM model. The Index Provider splits stocks in the Retail Industry Group Universe into quintiles based on market capitalization. Larger stocks are defined by inclusion in the top quintile and smaller stocks are the bottom four quintiles. The 8 top-ranked relatively larger stocks collectively receive 40% of the Index weighting (each stock receives on average a 5% weighting) and the 22 top-ranked relatively smaller stocks collectively receive 60% of the Index weighting (each stock receives on average a 2.73% weighting). The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2015, on a market price basis, the Fund returned 17.04%. On a net asset value (“NAV”) basis, the Fund returned 16.97%. During the same time period, the Index returned 17.78%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period.

During this same time period, the S&P Composite 1500 Retailing Index (the “Benchmark Index”) returned 28.90%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 85 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of a retail industry benchmark.

The Benchmark Index was selected for its recognition in the marketplace, and its performance comparison is a useful measure for investors as a broad representation of the retail industry.

The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an Index that employs a modified

equal weighting and stock selection methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization.

Relative to the Benchmark Index, the Fund was most overweight in the food retail sub-industry and most underweight in the internet retail sub-industry during the fiscal year ended April 30, 2015. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to allocation among food retail, apparel accessories & luxury goods (no longer held) sub-industries as well as allocation among and stock selection within the home improvement retail sub-industry.

For the fiscal year ended April 30, 2015, the automotive retail sub-industry contributed most significantly to the Fund’s return, followed by the apparel retail and drug retail sub-industries, respectively. The apparel accessories & luxury goods (no longer held) sub-industry detracted most significantly from the Fund’s return, followed by the internet retail and specialized consumer services (no longer held) sub-industries, respectively.

Positions that contributed most significantly to the Fund’s return included Kroger Co. (The), a food retail company (portfolio average weight of 5.32%), and O’Reilly Automotive, Inc., an automotive retail company (no longer held at fiscal year-end). Positions that detracted most significantly from the Fund’s return included Whole Foods Market, Inc., a food retail company (no longer held at fiscal year-end), and Gap, Inc., an apparel retail company (no longer held at fiscal year-end).

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2015
Food Retail	18.8
Drug Retail	10.2
Hypermarkets & Super Centers	9.9
Specialty Stores	8.3
Department Stores	7.9
Apparel Retail	7.9
General Merchandise Stores	7.6
Home Improvement Retail	4.8
Internet Retail	4.7
Food Distributors	3.2
Internet Software & Services	3.1
Automotive Retail	3.0
Forest Products	2.8
Homefurnishing Retail	2.7
Computer & Electronics Retail	2.6
Trucking	2.5
Money Market Fund Plus Other Assets Less Liabilities	0.0

29

PowerShares Dynamic Retail Portfolio (PMR) (continued)

Top Ten Fund Holdings (% of the Fund’s Net Assets) as of April 30, 2015
Security
Walgreens Boots Alliance, Inc.	5.2
Costco Wholesale Corp.	5.1
Kohl’s Corp.	5.0
Kroger Co. (The)	5.0
Dollar Tree, Inc.	5.0
CVS Health Corp.	5.0
Wal-Mart Stores, Inc.	4.8
Lowe’s Cos., Inc.	4.8
Smart & Final Stores, Inc.	3.3
SpartanNash Co.	3.2
Total	46.4

30

PowerShares Dynamic Retail Portfolio (PMR) (continued)

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

Fund Performance History as of April 30, 2015

	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			Fund Inception†
Index																Average Annualized			Cumulative
Dynamic Retail IntellidexSM Index		17.78	%		16.49	%		58.06	%		17.87	%		127.50	%		12.04	%		194.84	%
S&P Composite 1500 Retailing Index		28.90			20.41			74.58			19.92			147.96			12.11			196.63
Fund
NAV Return		16.97			15.54			54.26			16.99			119.18			11.30			176.82
Market Price Return		17.04			15.56			54.30			16.99			119.12			11.30			176.71

Fund Inception: October 26, 2005

Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2016. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.79% and the net annual operating expense ratio was indicated as 0.63%. The Financial Highlights section of the Shareholders Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund

at NAV and Market 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 and Benchmark 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 and Benchmark Index do 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.

^†  Fund, Index and Benchmark Index returns are based on the inception date of the Fund.

31

PSI	Manager’s Analysis
	PowerShares Dynamic Semiconductors Portfolio (PSI)

As an index fund, the PowerShares Dynamic Semiconductors Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Dynamic Semiconductor Intellidex^SM Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks of semiconductor companies that comprise the Index. These companies are engaged principally in the manufacture of semiconductors.

NYSE Arca, Inc. (the “Index Provider”) compiles, maintains and calculates the Index. Strictly in accordance with its existing guidelines and mandated procedures, the Index Provider includes 30 semiconductor stocks from a universe of the 2,000 largest U.S. stocks (by market capitalization) traded on the NYSE, NYSE MKT and the NASDAQ, after having ranked companies based on their capital appreciation potential using a proprietary NYSE Arca Intellidex^SM model. The Index Provider splits stocks in the Semiconductor Group Universe into quintiles based on market capitalization. Larger stocks are defined by inclusion in the top quintile and smaller stocks are the bottom four quintiles. The 8 top-ranked relatively larger stocks collectively receive 40% of the Index weighting (each stock receives on average a 5% weighting) and the 22 top-ranked relatively smaller stocks collectively receive 60% of the Index weighting (each stock receives on average a 2.73% weighting). The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2015, on a market price basis, the Fund returned 29.95%. On a net asset value (“NAV”) basis, the Fund returned 29.90%. During the same time period, the Index returned 31.10%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period.

During this same time period, the S&P Composite 1500 Semiconductor Index (the “Benchmark Index”) returned 26.00%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 50 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of a similar semiconductors industry benchmark.

The Benchmark Index was selected for its recognition in the marketplace, and its performance comparison is a useful measure for investors as a general representation of the semiconductors sub-industry.

The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an Index that employs a modified

equal weighting and stock selection methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization.

Relative to the Benchmark Index, the Fund was most overweight in the semiconductor equipment sub-industry and most underweight in the semiconductors sub-industry during the fiscal year ended April 30, 2015. The majority of the Fund’s outperformance relative to the Benchmark Index during that period can be attributed to stock selection within the semiconductors sub-industry.

For the fiscal year ended April 30, 2015, the semiconductors sub-industry contributed most significantly to the Fund’s return, followed by the semiconductor equipment sub-industry. The communications equipment sub-industry was the only detracting sub-industry.

Positions that contributed most significantly to the Fund’s return included Ambarella, Inc., a semiconductors company (portfolio average weight of 3%), and Skyworks Solutions, Inc., a semiconductors company (portfolio average weight of 4%). Positions that detracted most significantly from the Fund’s return included Lattice Semiconductor Corp., a semiconductors company (no longer held at fiscal year-end), and Maxim Integrated Products, Inc., a semiconductors company (portfolio average weight of 1.07%).

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2015
Semiconductors	85.1
Semiconductor Equipment	12.0
Communications Equipment	2.9
Money Market Fund Plus Other Assets Less Liabilities	(0.0)
Top Ten Fund Holdings (% of the Fund’s Net Assets) as of April 30, 2015
Security
NXP Semiconductors NV	5.8
Analog Devices, Inc.	5.4
Skyworks Solutions, Inc.	5.3
Intel Corp.	5.0
Broadcom Corp., Class A	5.0
Texas Instruments, Inc.	4.7
Micron Technology, Inc.	4.7
Lam Research Corp.	4.7
Ambarella, Inc.	3.5
Cirrus Logic, Inc.	3.1
Total	47.2

32

PowerShares Dynamic Semiconductors Portfolio (PSI) (continued)

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

Fund Performance History as of April 30, 2015

	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			Fund Inception†
Index																Average Annualized			Cumulative
Dynamic Semiconductor IntellidexSM Index		31.10	%		20.98	%		77.05	%		14.72	%		98.70	%		7.21	%		98.65	%
S&P Composite 1500 Semiconductor Index		26.00			15.40			53.69			12.75			82.24			6.15			80.09
Fund
NAV Return		29.90			19.96			72.64			13.84			91.16			6.43			84.73
Market Price Return		29.95			20.08			73.14			13.84			91.23			6.42			84.68

Fund Inception: June 23, 2005

Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2016. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 1.05% and the net annual operating expense ratio was indicated as 0.63%. The Financial Highlights section of the Shareholders Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that

dividends and capital gain distributions have been reinvested in the Fund at NAV and Market 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 and Benchmark 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 and Benchmark Index do 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.

^†  Fund, Index and Benchmark Index returns are based on the inception date of the Fund.

33

PSJ	Manager’s Analysis
	PowerShares Dynamic Software Portfolio (PSJ)

As an index fund, the PowerShares Dynamic Software Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Dynamic Software Intellidex^SM Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks of software companies that comprise the Index. These companies are engaged principally in the research, design, production or distribution of products or processes that relate to software applications and systems and information-based services.

NYSE Arca, Inc. (the “Index Provider”) compiles, maintains and calculates the Index. Strictly in accordance with its existing guidelines and mandated procedures, the Index Provider includes 30 software stocks from a universe of the 2,000 largest U.S. stocks (by market capitalization) traded on the NYSE, NYSE MKT and the NASDAQ, after having ranked the stocks based on their capital appreciation potential using a proprietary NYSE Arca Intellidex^SM model. The Index Provider splits stocks in the Software Group Universe into quintiles based on market capitalization. Larger stocks are defined by inclusion in the top quintile and smaller stocks are the bottom four quintiles. The 8 top-ranked relatively larger stocks collectively receive 40% of the Index weighting (each stock receives on average a 5% weighting) and the 22 top-ranked relatively smaller stocks collectively receive 60% of the Index weighting (each stock receives on average a 2.73% weighting). The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2015, on a market price basis, the Fund returned 25.32%. On a net asset value (“NAV”) basis, the Fund returned 25.18%. During the same time period, the Index returned 26.03%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period.

During this same time period, the S&P Composite 1500 Software & Services Index (the “Benchmark Index”) returned 16.65%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 110 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of a similar software industry benchmark.

The Benchmark Index was selected for its recognition in the marketplace, and its performance comparison is a useful measure for investors as a broad representation of the software industry.

The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an Index that employs a modified

equal weighting and stock selection methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization.

Relative to the Benchmark Index, the Fund was most overweight in the application software sub-industry and underweight in the internet software & services sub-industry during the fiscal year ended April 30, 2015. The majority of the Fund’s outperformance relative to the Benchmark Index during that period can be attributed to allocation among home entertainment software and application software sub-industries as well as allocation among and stock selection within the IT consulting & other services sub-industry.

For the fiscal year ended April 30, 2015, the application software sub-industry contributed most significantly to the Fund’s return, followed by the home entertainment software and health care technology sub-industries, respectively. The education services (no longer held) sub-industry was the only detracting sub-industry.

Positions that contributed most significantly to the Fund’s return included Electronic Arts, Inc., a home entertainment software company (portfolio average weight of 5.28%), and Paycom Software, Inc., an application software company (no longer held at fiscal year-end). Positions that detracted most significantly from the Fund’s return included Splunk, Inc., an application software company (no longer held at fiscal year-end), and PROS Holdings, Inc., an application software company (no longer held at fiscal year-end).

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2015
Application Software	38.2
Systems Software	28.6
Health Care Technology	9.6
Data Processing & Outsourced Services	5.6
Internet Software & Services	5.5
IT Consulting & Other Services	5.2
Home Entertainment Software	5.0
Semiconductor Equipment	2.4
Money Market Fund Plus Other Assets Less Liabilities	(0.1)

34

PowerShares Dynamic Software Portfolio (PSJ) (continued)

Top Ten Fund Holdings (% of the Fund’s Net Assets) as of April 30, 2015
Security
Microsoft Corp.	5.4
Red Hat, Inc.	5.3
Amdocs Ltd.	5.1
Intuit, Inc.	5.0
Electronic Arts, Inc.	5.0
Cerner Corp.	4.9
Symantec Corp.	4.9
ServiceNow, Inc.	4.8
LogMeIn, Inc.	3.3
Blackbaud, Inc.	3.0
Total	46.7

35

PowerShares Dynamic Software Portfolio (PSJ) (continued)

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

Fund Performance History as of April 30, 2015

	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			Fund Inception†
Index																Average Annualized			Cumulative
Dynamic Software IntellidexSM Index		26.03	%		17.31	%		61.45	%		14.28	%		94.96	%		11.85	%		201.55	%
S&P Composite 1500 Software & Services Index		16.65			16.62			58.59			15.57			106.13			9.88			153.05
Fund
NAV Return		25.18			16.52			58.21			13.53			88.61			11.17			183.79
Market Price Return		25.32			16.53			58.25			13.53			88.57			11.16			183.67

Fund Inception: June 23, 2005

Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2016. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.69% and the net annual operating expense ratio was 0.63%. The Financial Highlights section of the Shareholders Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and

capital gain distributions have been reinvested in the Fund at NAV and Market 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 and Benchmark 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 and Benchmark Index do 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.

^†  Fund, Index and Benchmark Index returns are based on the inception date of the Fund.

36

Schedule of Investments^(a)

PowerShares Dynamic Biotechnology & Genome Portfolio (PBE)

April 30, 2015

Number of Shares			Value
		Common Stocks—100.0%
		Biotechnology—92.6%
	1,183,335	Achillion Pharmaceuticals, Inc.(b)	$	10,354,181
	424,518	Acorda Therapeutics, Inc.(b)		12,765,256
	146,017	Alexion Pharmaceuticals, Inc.(b)		24,710,457
	166,987	Amgen, Inc.		26,368,917
	1,804,734	Array BioPharma, Inc.(b)(c)		11,279,588
	64,301	Biogen, Inc.(b)		24,044,073
	245,980	BioMarin Pharmaceutical, Inc.(b)		27,562,059
	950,740	Dyax Corp.(b)		22,732,193
	479,336	Emergent Biosolutions, Inc.(b)		14,231,486
	254,391	Gilead Sciences, Inc.(b)		25,568,839
	167,335	Incyte Corp.(b)		16,258,269
	945,111	Infinity Pharmaceuticals, Inc.(b)		11,974,556
	239,189	Insys Therapeutics, Inc.(b)(c)		12,574,166
	209,534	Isis Pharmaceuticals, Inc.(b)		11,884,769
	2,214,744	MannKind Corp.(b)(c)		9,501,252
	122,230	Medivation, Inc.(b)		14,758,050
	421,652	Myriad Genetics, Inc.(b)(c)		13,927,166
	367,879	Neurocrine Biosciences, Inc.(b)		12,540,995
	986,655	OPKO Health, Inc.(b)(c)		13,576,373
	2,058,121	PDL BioPharma, Inc.(c)		13,727,667
	121,971	Pharmacyclics, Inc.(b)(c)		31,248,970
	63,641	Regeneron Pharmaceuticals, Inc., Class A(b)		29,113,212
	558,758	Repligen Corp.(b)		16,488,949
	854,084	Sangamo BioSciences, Inc.(b)		10,565,019
	396,295	Seattle Genetics, Inc.(b)(c)		13,608,770
	92,652	United Therapeutics Corp.(b)		14,795,598
	220,523	Vertex Pharmaceuticals, Inc.(b)		27,186,075
				473,346,905
		Health Care Equipment—2.3%
	380,952	Cardiovascular Systems, Inc.(b)		11,923,797
		Pharmaceuticals—5.1%
	213,268	ANI Pharmaceuticals, Inc.(b)		13,005,083
	795,442	Theravance, Inc.(c)		12,925,932
				25,931,015
		Total Common Stocks (Cost $453,388,477)		511,201,717
		Money Market Fund—0.0%
	204,280	Invesco Premier Portfolio—Institutional Class(d) (Cost $204,280)		204,280
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $453,592,757)—100.0%		511,405,997

Number of Shares			Value
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—16.0%
	81,899,696	Invesco Liquid Assets Portfolio—Institutional Class(d)(e) (Cost $81,899,696)	$	81,899,696
		Total Investments (Cost $535,492,453)—116.0%		593,305,693
		Other assets less liabilities—(16.0)%		(82,043,567	)
		Net Assets—100.0%	$	511,262,126

Notes to Schedule of Investments:

^(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.

^(b)  Non-income producing security.

^(c)  All or a portion of this security was out on loan at April 30, 2015.

^(d)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated.

^(e)  The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2G. The following table presents the Fund’s gross and net amount of assets available for offset by the Fund as of April 30, 2015.

Counterparty	Gross Amount of Securities on Loan at Value		Cash Collateral Received for Securities Loaned*			Net Amount
Brown Brothers Harriman & Co.	$	77,755,803	$	(77,755,803	)	$	—

* Amount does not include excess collateral received, if any.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

37

Schedule of Investments^(a)

PowerShares Dynamic Building & Construction Portfolio (PKB)

April 30, 2015

Number of Shares			Value
		Common Stocks—100.0%
		Building Products—16.9%
	24,156	A.O. Smith Corp.	$	1,543,568
	28,912	American Woodmark Corp.(b)		1,465,838
	33,206	Apogee Enterprises, Inc.		1,747,300
	72,985	Continental Building Products, Inc.(b)		1,606,400
	30,238	Trex Co., Inc.(b)		1,418,767
	28,168	Universal Forest Products, Inc.		1,558,254
				9,340,127
		Construction & Engineering—21.8%
	34,329	Dycom Industries, Inc.(b)		1,578,447
	34,579	EMCOR Group, Inc.		1,543,261
	48,124	Fluor Corp.		2,894,177
	34,337	Jacobs Engineering Group, Inc.(b)		1,471,684
	93,462	KBR, Inc.		1,632,781
	52,901	Quanta Services, Inc.(b)		1,529,368
	65,428	Tutor Perini Corp.(b)		1,387,074
				12,036,792
		Construction Materials—13.2%
	92,722	Headwaters, Inc.(b)		1,630,053
	19,610	Martin Marietta Materials, Inc.		2,797,366
	33,629	Vulcan Materials Co.		2,875,952
				7,303,371
		Distributors—2.6%
	22,010	Pool Corp.		1,428,229
		Diversified Real Estate Activities—2.8%
	89,611	St. Joe Co. (The)(b)		1,563,712
		Forest Products—7.9%
	42,754	Boise Cascade Co.(b)		1,483,564
	23,006	Deltic Timber Corp.		1,472,384
	90,463	Louisiana-Pacific Corp.(b)		1,378,656
				4,334,604
		Home Furnishings—4.8%
	15,142	Mohawk Industries, Inc.(b)		2,627,137
		Home Improvement Retail—9.4%
	24,324	Home Depot, Inc. (The)		2,602,181
	37,673	Lowe’s Cos., Inc.		2,594,163
				5,196,344
		Homebuilding—7.8%
	1,143	NVR, Inc.(b)		1,516,178
	33,462	Ryland Group, Inc. (The)		1,379,304
	39,741	Toll Brothers, Inc.(b)		1,412,395
				4,307,877
		Industrial Conglomerates—2.9%
	16,358	Carlisle Cos., Inc.		1,578,547
		Industrial Machinery—5.0%
	41,544	Ingersoll-Rand PLC		2,735,257
		Specialty Stores—4.9%
	31,675	Tractor Supply Co.		2,725,951
		Total Common Stocks (Cost $50,919,135)		55,177,948

Number of Shares			Value
		Money Market Fund—0.2%
	99,723	Invesco Premier Portfolio—Institutional Class(c) (Cost $99,723)	$	99,723
		Total Investments (Cost $51,018,858)—100.2%		55,277,671
		Other assets less liabilities—(0.2)%		(100,258	)
		Net Assets—100.0%	$	55,177,413

Notes to Schedule of Investments:

^(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.

^(b)  Non-income producing security.

^(c)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

38

Schedule of Investments^(a)

PowerShares Dynamic Energy Exploration & Production Portfolio (PXE)

April 30, 2015

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Integrated Oil & Gas—4.9%
	71,232	Occidental Petroleum Corp.	$	5,705,683
		Oil & Gas Exploration & Production—63.3%
	84,258	Apache Corp.		5,763,247
	112,278	Bonanza Creek Energy, Inc.(b)		3,094,382
	63,582	Carrizo Oil & Gas, Inc.(b)		3,543,425
	332,585	Chesapeake Energy Corp.		5,244,865
	61,679	Clayton Williams Energy, Inc.(b)		3,433,670
	85,085	ConocoPhillips		5,778,973
	360,227	Denbury Resources, Inc.		3,173,600
	90,071	Devon Energy Corp.		6,143,743
	61,832	EOG Resources, Inc.		6,118,276
	268,970	EP Energy Corp., Class A(b)		3,972,687
	91,611	Newfield Exploration Co.(b)		3,594,816
	211,160	Oasis Petroleum, Inc.(b)		3,788,210
	58,550	PDC Energy, Inc.(b)		3,322,127
	170,665	Rosetta Resources, Inc.(b)		3,896,282
	1,709,552	SandRidge Energy, Inc.(b)		3,231,053
	62,365	SM Energy Co.		3,615,299
	120,649	Southwestern Energy Co.(b)		3,381,792
	89,445	Whiting Petroleum Corp.(b)		3,390,860
				74,487,307
		Oil & Gas Refining & Marketing—31.8%
	217,066	Alon USA Energy, Inc.		3,492,592
	167,919	Alon USA Partners LP		3,282,816
	72,063	CVR Energy, Inc.		2,885,403
	155,493	CVR Refining LP		3,349,319
	81,167	Delek US Holdings, Inc.		2,996,686
	68,787	HollyFrontier Corp.		2,667,560
	52,833	Marathon Petroleum Corp.		5,207,749
	97,078	PBF Energy, Inc., Class A		2,755,074
	32,947	Tesoro Corp.		2,827,841
	89,925	Valero Energy Corp.		5,116,732
	64,244	Western Refining, Inc.		2,829,948
				37,411,720
		Total Common Stocks and Other Equity Interests (Cost $111,887,696)		117,604,710
		Money Market Fund—0.1%
	117,176	Invesco Premier Portfolio—Institutional Class(c) (Cost $117,176)		117,176
		Total Investments (Cost $112,004,872)—100.1%		117,721,886
		Other assets less liabilities—(0.1)%		(129,165	)
		Net Assets—100.0%	$	117,592,721

Notes to Schedule of Investments:

^(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.

^(b)  Non-income producing security.

^(c)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

39

Schedule of Investments^(a)

PowerShares Dynamic Food & Beverage Portfolio (PBJ)

April 30, 2015

Number of Shares			Value
		Common Stocks—100.0%
		Agricultural Products—13.4%
	275,672	Archer-Daniels-Midland Co.	$	13,474,848
	88,036	Bunge Ltd.		7,603,669
	204,472	Fresh Del Monte Produce, Inc.		7,551,151
	87,575	Ingredion, Inc.		6,953,455
				35,583,123
		Brewers—5.1%
	26,904	Boston Beer Co., Inc. (The), Class A(b)		6,666,811
	94,867	Molson Coors Brewing Co., Class B		6,973,673
				13,640,484
		Food Distributors—10.4%
	162,626	Andersons, Inc. (The)		6,942,504
	271,169	SpartanNash Co.		8,181,169
	338,526	Sysco Corp.		12,535,618
				27,659,291
		Food Retail—12.4%
	166,501	Ingles Markets, Inc., Class A		6,969,732
	185,510	Kroger Co. (The)		12,783,494
	728,696	SUPERVALU, Inc.(b)		6,405,238
	152,629	Weis Markets, Inc.		6,769,096
				32,927,560
		Packaged Foods & Meats—38.5%
	171,620	Calavo Growers, Inc.		8,692,553
	191,325	Cal-Maine Foods, Inc., Class A		8,554,141
	154,528	Campbell Soup Co.		6,908,947
	245,383	General Mills, Inc.		13,579,495
	123,050	Hormel Foods Corp.		6,687,767
	204,702	Kellogg Co.		12,963,778
	56,431	Keurig Green Mountain, Inc.		6,566,875
	206,045	Kraft Foods Group, Inc.		17,462,314
	262,470	Pilgrim’s Pride Corp.		6,483,009
	198,334	Pinnacle Foods, Inc.		8,042,444
	1,798	Seaboard Corp.(b)		6,472,800
				102,414,123
		Restaurants—10.2%
	74,462	Jack in the Box, Inc.		6,461,068
	226,470	Sonic Corp.		6,488,365
	282,379	Starbucks Corp.		14,000,351
				26,949,784
		Soft Drinks—10.0%
	91,377	Dr Pepper Snapple Group, Inc.		6,814,896
	51,016	Monster Beverage Corp.(b)		6,994,804
	133,350	PepsiCo, Inc.		12,684,252
				26,493,952
		Total Common Stocks (Cost $250,964,417)		265,668,317
		Money Market Fund—0.0%
	38,965	Invesco Premier Portfolio—Institutional Class(c) (Cost $38,965)		38,965
		Total Investments (Cost $251,003,382)—100.0%		265,707,282
		Other assets less liabilities—0.0%		13,316
		Net Assets—100.0%	$	265,720,598

Notes to Schedule of Investments:

^(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.

^(b)  Non-income producing security.

^(c)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

40

Schedule of Investments^(a)

PowerShares Dynamic Leisure and Entertainment Portfolio (PEJ)

April 30, 2015

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.1%
		Airlines—31.9%
	85,060	Alaska Air Group, Inc.	$	5,448,944
	29,485	Allegiant Travel Co.		4,533,614
	207,216	American Airlines Group, Inc.		10,005,425
	222,946	Delta Air Lines, Inc.		9,952,309
	292,487	Hawaiian Holdings, Inc.(b)		6,750,600
	314,948	JetBlue Airways Corp.(b)		6,465,882
	229,546	Southwest Airlines Co.		9,310,386
	152,280	United Continental Holdings, Inc.(b)		9,097,207
				61,564,367
		Cable & Satellite—3.3%
	162,875	Starz, Class A(b)		6,405,874
		Casinos & Gaming—2.8%
	332,349	Penn National Gaming, Inc.(b)		5,344,172
		Hotels, Resorts & Cruise Lines—15.2%
	119,443	Marriott International, Inc., Class A		9,561,412
	71,181	Marriott Vacations Worldwide Corp.		5,851,790
	129,882	Royal Caribbean Cruises Ltd.		8,839,769
	59,183	Wyndham Worldwide Corp.		5,054,228
				29,307,199
		Internet Retail—2.9%
	467,527	Orbitz Worldwide, Inc.(b)		5,479,416
		Leisure Facilities—2.8%
	96,798	Cedar Fair LP		5,462,311
		Movies & Entertainment—7.8%
	157,474	AMC Entertainment Holdings, Inc., Class A		4,733,668
	95,366	Walt Disney Co. (The)		10,368,192
				15,101,860
		Restaurants—33.4%
	103,675	BJ’s Restaurants, Inc.(b)		4,851,990
	91,052	Brinker International, Inc.		5,041,549
	28,328	Buffalo Wild Wings, Inc.(b)		4,512,650
	35,847	Cracker Barrel Old Country Store, Inc.		4,749,011
	470,371	Denny’s Corp.(b)		4,896,562
	49,884	DineEquity, Inc.		4,810,314
	55,994	Jack in the Box, Inc.		4,858,599
	87,548	Papa John’s International, Inc.		5,372,821
	90,217	Popeyes Louisiana Kitchen, Inc.(b)		5,023,283
	170,304	Sonic Corp.		4,879,210
	212,349	Starbucks Corp.		10,528,263
	143,833	Texas Roadhouse, Inc.		4,832,789
				64,357,041
		Total Common Stocks and Other Equity Interests (Cost $186,725,154)		193,022,240
		Money Market Fund—0.0%
	71,221	Invesco Premier Portfolio—Institutional Class(c) (Cost $71,221)		71,221
		Total Investments (Cost $186,796,375)—100.1%		193,093,461
		Other assets less liabilities—(0.1)%		(153,010	)
		Net Assets—100.0%	$	192,940,451

Notes to Schedule of Investments:

^(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.

^(b)  Non-income producing security.

^(c)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

41

Schedule of Investments^(a)

PowerShares Dynamic Media Portfolio (PBS)

April 30, 2015

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Advertising—7.8%
	177,047	Interpublic Group of Cos., Inc. (The)	$	3,689,660
	259,068	National CineMedia, Inc.		3,948,196
	49,637	Omnicom Group, Inc.		3,760,499
				11,398,355
		Broadcasting—6.0%
	192,824	E.W. Scripps Co. (The), Class A		4,490,871
	72,403	Nexstar Broadcasting Group, Inc., Class A		4,232,679
				8,723,550
		Cable & Satellite—26.3%
	54,820	AMC Networks, Inc., Class A(b)		4,135,621
	210,235	Cablevision Systems Corp., Class A		4,200,495
	81,700	DIRECTV(b)		7,410,599
	96,459	DISH Network Corp., Class A(b)		6,526,416
	1,014,956	Sirius XM Holdings, Inc.(b)		4,009,076
	118,777	Starz, Class A(b)		4,671,499
	46,987	Time Warner Cable, Inc.		7,307,418
				38,261,124
		Catalog Retail—5.1%
	58,431	HSN, Inc.		3,647,263
	133,703	Liberty Interactive Corp., Series A(b)		3,845,298
				7,492,561
		Data Processing & Outsourced Services—2.9%
	14,176	Alliance Data Systems Corp.(b)		4,214,667
		Internet Software & Services—15.0%
	97,393	AOL, Inc.(b)		3,885,981
	91,659	Facebook, Inc., Class A(b)		7,219,979
	93,981	GrubHub, Inc.(b)		3,869,198
	27,093	LinkedIn Corp., Class A(b)		6,830,958
				21,806,116
		Movies & Entertainment—15.2%
	88,422	Time Warner, Inc.		7,463,701
	206,807	Twenty-First Century Fox, Inc., Class A		7,047,983
	69,545	Walt Disney Co. (The)		7,560,932
				22,072,616
		Publishing—13.4%
	111,530	Gannett Co., Inc.		3,827,710
	73,604	Meredith Corp., Class B		3,830,352
	282,212	New York Times Co. (The), Class A		3,778,819
	106,678	Scholastic Corp., Class A		4,335,394
	166,588	Time, Inc.		3,803,204
				19,575,479
		Research & Consulting Services—2.9%
	33,592	IHS, Inc., Class A(b)		4,214,788
		Specialized Finance—2.7%
	38,294	McGraw Hill Financial, Inc.		3,994,064
		Specialized REITs—2.7%
	67,954	Lamar Advertising Co., Class A REIT		3,938,614
		Total Common Stocks and Other Equity Interests (Cost $136,660,519)		145,691,934

Number of Shares			Value
		Money Market Fund—0.1%
	126,221	Invesco Premier Portfolio—Institutional Class(c) (Cost $126,221)	$	126,221
		Total Investments (Cost $136,786,740)—100.1%		145,818,155
		Other assets less liabilities—(0.1)%		(149,923	)
		Net Assets—100.0%	$	145,668,232

Investment Abbreviations:

REIT—Real Estate Investment Trust

Notes to Schedule of Investments:

^(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.

^(b)  Non-income producing security.

^(c)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

42

Schedule of Investments^(a)

PowerShares Dynamic Networking Portfolio (PXQ)

April 30, 2015

Number of Shares			Value
		Common Stocks—100.0%
		Application Software—10.7%
	21,639	Citrix Systems, Inc.(b)	$	1,453,275
	18,640	NetScout Systems, Inc.(b)		766,104
	14,815	SolarWinds, Inc.(b)		722,676
				2,942,055
		Communications Equipment—44.4%
	10,859	Arista Networks, Inc.(b)		695,085
	25,581	ARRIS Group, Inc.(b)		861,440
	30,293	Aruba Networks, Inc.(b)		745,511
	60,658	Brocade Communications Systems, Inc.		685,435
	35,925	Ciena Corp.(b)		765,202
	46,691	Cisco Systems, Inc.		1,346,102
	23,859	CommScope Holding Co., Inc.(b)		704,079
	6,363	F5 Networks, Inc.(b)		776,413
	44,080	Infinera Corp.(b)		828,704
	57,627	Juniper Networks, Inc.		1,523,082
	9,688	Palo Alto Networks, Inc.(b)		1,431,111
	14,900	Plantronics, Inc.		793,723
	54,382	Polycom, Inc.(b)		709,685
	44,054	Sonus Networks, Inc.(b)		348,908
				12,214,480
		Consumer Electronics—4.6%
	27,763	Garmin Ltd.		1,254,610
		Electronic Components—7.5%
	24,404	Amphenol Corp., Class A		1,351,249
	8,465	Belden, Inc.		710,637
				2,061,886
		Internet Software & Services—3.3%
	14,261	LogMeIn, Inc.(b)		915,271
		Semiconductors—2.6%
	10,973	Cavium, Inc.(b)		710,941
		Systems Software—19.3%
	19,731	Barracuda Networks, Inc.(b)		799,697
	42,370	CA, Inc.		1,346,095
	22,361	Fortinet, Inc.(b)		843,904
	32,325	Infoblox, Inc.(b)		761,577
	16,328	Qualys, Inc.(b)		808,563
	29,335	VASCO Data Security International, Inc.(b)		745,696
				5,305,532
		Technology Hardware, Storage & Peripherals—7.6%
	10,726	Apple, Inc.		1,342,359
	50,070	QLogic Corp.(b)		736,029
				2,078,388
		Total Common Stocks (Cost $22,801,193)		27,483,163
		Money Market Fund—0.3%
	81,203	Invesco Premier Portfolio—Institutional Class(c) (Cost $81,203)		81,203
		Total Investments (Cost $22,882,396)—100.3%		27,564,366
		Other assets less liabilities—(0.3)%		(79,609	)
		Net Assets—100.0%	$	27,484,757

Notes to Schedule of Investments:

^(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.

^(b)  Non-income producing security.

^(c)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

43

Schedule of Investments^(a)

PowerShares Dynamic Oil & Gas Services Portfolio (PXJ)

April 30, 2015

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Oil & Gas Drilling—24.9%
	57,357	Atwood Oceanics, Inc.	$	1,914,577
	48,626	Helmerich & Payne, Inc.		3,791,369
	138,849	Nabors Industries Ltd.		2,318,778
	106,890	Noble Corp. PLC		1,850,266
	95,191	Patterson-UTI Energy, Inc.		2,127,519
	154,263	Seadrill Ltd. (Norway)		2,019,303
	110,270	Transocean Ltd.		2,075,281
	129,923	Transocean Partners LLC		2,057,980
				18,155,073
		Oil & Gas Equipment & Services—69.6%
	52,165	Baker Hughes, Inc.		3,571,216
	130,495	C&J Energy Services Ltd.(b)		2,277,138
	69,262	Cameron International Corp.(b)		3,796,943
	16,181	Core Laboratories NV		2,124,242
	40,065	Dresser-Rand Group, Inc.(b)		3,312,174
	24,479	Dril-Quip, Inc.(b)		1,951,466
	54,778	Exterran Holdings, Inc.		2,030,620
	81,664	FMC Technologies, Inc.(b)		3,601,382
	91,073	Forum Energy Technologies, Inc.(b)		2,118,358
	75,940	Halliburton Co.		3,717,263
	115,198	Helix Energy Solutions Group, Inc.(b)		1,898,463
	59,997	National Oilwell Varco, Inc.		3,264,437
	187,820	Newpark Resources, Inc.(b)		1,927,033
	32,618	Oceaneering International, Inc.		1,797,578
	40,907	Oil States International, Inc.(b)		1,946,764
	132,340	RPC, Inc.		2,105,529
	38,746	Schlumberger Ltd.		3,665,759
	24,530	SEACOR Holdings, Inc.(b)		1,782,350
	79,475	Superior Energy Services, Inc.		2,026,613
	63,073	Tidewater, Inc.		1,746,491
				50,661,819
		Oil & Gas Storage & Transportation—5.5%
	96,613	Navigator Holdings Ltd. (United Kingdom)(b)		2,069,450
	81,069	Teekay Offshore Partners LP		1,901,879
				3,971,329
		Total Common Stocks and Other Equity Interests (Cost $77,978,441)		72,788,221
		Money Market Fund—0.1%
	96,729	Invesco Premier Portfolio—Institutional Class(c) (Cost $96,729)		96,729
		Total Investments (Cost $78,075,170)—100.1%		72,884,950
		Other assets less liabilities—(0.1)%		(99,260	)
		Net Assets—100.0%	$	72,785,690

Notes to Schedule of Investments:

^(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.

^(b)  Non-income producing security.

^(c)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

44

Schedule of Investments^(a)

PowerShares Dynamic Pharmaceuticals Portfolio (PJP)

April 30, 2015

Number of Shares			Value
		Common Stocks—100.0%
		Biotechnology—27.7%
	650,491	Amgen, Inc.	$	102,719,034
	250,479	Biogen, Inc.(b)		93,661,612
	844,193	Celgene Corp.(b)		91,223,496
	990,966	Gilead Sciences, Inc.(b)		99,601,993
	1,176,624	Ligand Pharmaceuticals, Inc.(b)(c)		91,353,087
	7,081,607	Novavax, Inc.(b)		54,740,822
				533,300,044
		Health Care Equipment—6.6%
	1,367,886	Abbott Laboratories		63,497,268
	937,046	Baxter International, Inc.		64,412,542
				127,909,810
		Pharmaceuticals—65.7%
	324,930	Actavis PLC(b)		91,909,700
	1,204,174	Akorn, Inc.(b)		50,141,805
	4,321,219	BioDelivery Sciences International, Inc.(b)(c)		34,829,025
	1,684,090	Bristol-Myers Squibb Co.		107,327,056
	2,952,012	Depomed, Inc.(b)		68,663,799
	923,428	Eli Lilly & Co.		66,366,770
	740,198	Hospira, Inc.(b)		64,611,884
	1,608,261	Impax Laboratories, Inc.(b)		72,789,893
	1,000,824	Johnson & Johnson		99,281,741
	1,038,409	Lannett Co., Inc.(b)		59,708,518
	2,252,623	Medicines Co. (The)(b)		57,689,675
	1,752,556	Merck & Co., Inc.		104,382,235
	1,130,339	Mylan NV(b)		81,678,296
	3,104,776	Omeros Corp.(b)(c)(d)		62,468,093
	419,475	Perrigo Co. PLC		76,881,378
	2,989,354	Pfizer, Inc.		101,428,781
	1,681,287	Prestige Brands Holdings, Inc.(b)		65,990,515
				1,266,149,164
		Total Common Stocks (Cost $1,639,862,596)		1,927,359,018
		Money Market Fund—0.0%
	136,848	Invesco Premier Portfolio—Institutional Class(e) (Cost $136,848)		136,848
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $1,639,999,444)—100.0%		1,927,495,866
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—2.3%
	43,069,125	Invesco Liquid Assets Portfolio—Institutional Class(e)(f) (Cost $43,069,125)		43,069,125
		Total Investments (Cost $1,683,068,569)—102.3%		1,970,564,991
		Other assets less liabilities—(2.3)%		(43,631,304	)
		Net Assets—100.0%	$	1,926,933,687

Notes to Schedule of Investments:

^(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.

^(b)  Non-income producing security.

^(c)  Affiliated investments. See Note 4.

^(d)  All or a portion of this security was out on loan at April 30, 2015.

^(e)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated.

^(f)  The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2G. The following table presents the Fund’s gross and net amount of assets available for offset by the Fund as of April 30, 2015.

Counterparty	Gross Amount of Securities on Loan at Value		Cash Collateral Received for Securities Loaned*			Net Amount
Citibank	$	39,409,044	$	(39,409,044	)	$	—

* Amount does not include excess collateral received, if any.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

45

Schedule of Investments^(a)

PowerShares Dynamic Retail Portfolio (PMR)

April 30, 2015

Number of Shares			Value
		Common Stocks—100.0%
		Apparel Retail—7.9%
	24,520	Cato Corp. (The), Class A	$	964,617
	19,077	Children’s Place, Inc. (The)		1,157,211
	28,005	Zumiez, Inc.(b)		888,038
				3,009,866
		Automotive Retail—3.0%
	13,818	Asbury Automotive Group, Inc.(b)		1,161,126
		Computer & Electronics Retail—2.6%
	28,891	Best Buy Co., Inc.		1,001,073
		Department Stores—7.9%
	8,350	Dillard’s, Inc., Class A		1,098,777
	27,008	Kohl’s Corp.		1,935,123
				3,033,900
		Drug Retail—10.2%
	19,192	CVS Health Corp.		1,905,574
	23,995	Walgreens Boots Alliance, Inc.		1,989,905
				3,895,479
		Food Distributors—3.2%
	40,951	SpartanNash Co.		1,235,492
		Food Retail—18.8%
	28,565	Fresh Market, Inc. (The)(b)		1,003,774
	25,142	Ingles Markets, Inc., Class A		1,052,444
	28,013	Kroger Co. (The)		1,930,376
	72,190	Smart & Final Stores, Inc.(b)		1,250,331
	110,040	SUPERVALU, Inc.(b)		967,252
	23,047	Weis Markets, Inc.		1,022,134
				7,226,311
		Forest Products—2.8%
	30,531	Boise Cascade Co.(b)		1,059,426
		General Merchandise Stores—7.6%
	19,563	Burlington Stores, Inc.(b)		1,008,864
	25,017	Dollar Tree, Inc.(b)		1,911,549
				2,920,413
		Home Improvement Retail—4.8%
	26,902	Lowe’s Cos., Inc.		1,852,472
		Homefurnishing Retail—2.7%
	33,869	Select Comfort Corp.(b)		1,043,843
		Hypermarkets & Super Centers—9.9%
	13,566	Costco Wholesale Corp.		1,940,616
	23,747	Wal-Mart Stores, Inc.		1,853,454
				3,794,070
		Internet Retail—4.7%
	87,116	1-800-FLOWERS.COM, Inc., Class A(b)		920,816
	31,243	FTD Cos., Inc.(b)		891,675
				1,812,491
		Internet Software & Services—3.1%
	19,395	Stamps.com, Inc.(b)		1,200,356
		Specialty Stores—8.3%
	38,553	Michaels Cos., Inc. (The)(b)		996,981
	116,029	Office Depot, Inc.(b)		1,069,787

Number of Shares			Value
		Common Stocks (continued)
		Specialty Stores (continued)
	16,852	Outerwall, Inc.	$	1,119,478
				3,186,246
		Trucking—2.5%
	17,935	Avis Budget Group, Inc.(b)		971,001
		Total Common Stocks (Cost $37,609,549)		38,403,565
		Money Market Fund—0.2%
	66,101	Invesco Premier Portfolio—Institutional Class(c) (Cost $66,101)		66,101
		Total Investments (Cost $37,675,650)—100.2%		38,469,666
		Other assets less liabilities—(0.2)%		(59,282	)
		Net Assets—100.0%	$	38,410,384

Notes to Schedule of Investments:

^(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.

^(b)  Non-income producing security.

^(c)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

46

Schedule of Investments^(a)

PowerShares Dynamic Semiconductors Portfolio (PSI)

April 30, 2015

Number of Shares			Value
		Common Stocks—100.0%
		Communications Equipment—2.9%
	41,416	InterDigital, Inc.	$	2,266,284
		Semiconductor Equipment—12.0%
	225,073	Amkor Technology, Inc.(b)		1,582,263
	136,871	Kulicke & Soffa Industries, Inc. (Singapore)(b)		2,068,121
	48,687	Lam Research Corp.		3,679,764
	61,930	MKS Instruments, Inc.		2,155,783
				9,485,931
		Semiconductors—85.1%
	38,160	Ambarella, Inc.(b)		2,791,404
	68,584	Analog Devices, Inc.		4,241,235
	88,760	Broadcom Corp., Class A		3,923,636
	31,977	Cavium, Inc.(b)		2,071,790
	72,730	Cirrus Logic, Inc.(b)		2,456,819
	148,479	Cypress Semiconductor Corp.(b)		1,977,740
	125,577	Fairchild Semiconductor International, Inc.(b)		2,281,106
	60,652	Freescale Semiconductor Ltd.(b)		2,370,887
	106,098	Integrated Device Technology, Inc.(b)		1,929,923
	120,757	Intel Corp.		3,930,640
	140,471	Intersil Corp., Class A		1,875,288
	64,939	M/A-COM Technology Solutions Holdings, Inc.(b)		1,978,691
	63,669	Maxim Integrated Products, Inc.		2,090,253
	42,717	Microchip Technology, Inc.		2,035,679
	130,914	Micron Technology, Inc.(b)		3,682,611
	67,926	Microsemi Corp.(b)		2,266,011
	41,529	Monolithic Power Systems, Inc.		2,152,448
	99,282	NVIDIA Corp.		2,203,564
	47,290	NXP Semiconductors NV (Netherlands)(b)		4,545,515
	81,678	OmniVision Technologies, Inc.(b)		2,278,408
	171,770	ON Semiconductor Corp.(b)		1,978,790
	230,526	PMC—Sierra, Inc.(b)		1,943,334
	43,251	Silicon Laboratories, Inc.(b)		2,234,779
	45,763	Skyworks Solutions, Inc.		4,221,637
	68,282	Texas Instruments, Inc.		3,701,567
				67,163,755
		Total Common Stocks (Cost $76,360,705)		78,915,970
		Money Market Fund—0.1%
	79,651	Invesco Premier Portfolio—Institutional Class(c) (Cost $79,651)		79,651
		Total Investments (Cost $76,440,356)—100.1%		78,995,621
		Other assets less liabilities—(0.1)%		(85,010	)
		Net Assets—100.0%	$	78,910,611

Notes to Schedule of Investments:

^(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.

^(b)  Non-income producing security.

^(c)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

47

Schedule of Investments^(a)

PowerShares Dynamic Software Portfolio (PSJ)

April 30, 2015

Number of Shares			Value
		Common Stocks—100.1%
		Application Software—38.2%
	34,731	Advent Software, Inc.	$	1,507,673
	33,789	Blackbaud, Inc.		1,707,358
	29,027	Ellie Mae, Inc.(b)		1,596,485
	18,021	Fair Isaac Corp.		1,594,138
	28,808	Intuit, Inc.		2,890,307
	103,306	King Digital Entertainment PLC (Ireland)		1,638,433
	30,774	Manhattan Associates, Inc.(b)		1,617,481
	8,602	MicroStrategy, Inc., Class A(b)		1,566,596
	25,281	SS&C Technologies Holdings, Inc., Class A		1,521,158
	34,661	Synchronoss Technologies, Inc.(b)		1,590,247
	33,055	Synopsys, Inc.(b)		1,549,618
	12,852	Tyler Technologies, Inc.(b)		1,567,301
	25,200	Verint Systems, Inc.(b)		1,548,036
				21,894,831
		Data Processing & Outsourced Services—5.6%
	14,433	DST Systems, Inc.		1,660,949
	23,421	Jack Henry & Associates, Inc.		1,557,731
				3,218,680
		Health Care Technology—9.6%
	39,031	Cerner Corp.(b)		2,802,816
	88,268	Quality Systems, Inc.		1,376,540
	49,696	Veeva Systems, Inc., Class A(b)		1,319,429
				5,498,785
		Home Entertainment Software—5.0%
	49,187	Electronic Arts, Inc.(b)		2,857,273
		Internet Software & Services—5.5%
	37,118	Constant Contact, Inc.(b)		1,293,562
	29,110	LogMeIn, Inc.(b)		1,868,280
				3,161,842
		IT Consulting & Other Services—5.2%
	53,571	Amdocs Ltd.		2,950,155
		Semiconductor Equipment—2.4%
	38,295	Tessera Technologies, Inc.		1,382,833
		Systems Software—28.6%
	64,138	Microsoft Corp.		3,119,672
	56,111	Progress Software Corp.(b)		1,481,330
	33,328	Qualys, Inc.(b)		1,650,403
	40,691	Red Hat, Inc.(b)		3,062,405
	36,880	ServiceNow, Inc.(b)		2,760,837
	111,785	Symantec Corp.		2,786,241
	59,879	VASCO Data Security International, Inc.(b)		1,522,124
				16,383,012
		Total Common Stocks (Cost $51,161,017)		57,347,411
		Money Market Fund—0.1%
	79,405	Invesco Premier Portfolio—Institutional Class(c) (Cost $79,405)		79,405
		Total Investments (Cost $51,240,422)—100.2%		57,426,816
		Other assets less liabilities—(0.2)%		(97,425	)
		Net Assets—100.0%	$	57,329,391

Notes to Schedule of Investments:

^(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.

^(b)  Non-income producing security.

^(c)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

48

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Statements of Assets and Liabilities

April 30, 2015

	PowerShares Dynamic Biotechnology & Genome Portfolio (PBE)			PowerShares Dynamic Building & Construction Portfolio (PKB)			PowerShares Dynamic Energy Exploration & Production Portfolio (PXE)			PowerShares Dynamic Food & Beverage Portfolio (PBJ)			PowerShares Dynamic Leisure and Entertainment Portfolio (PEJ)
Assets:
Unaffiliated investments, at value(a)	$	511,201,717		$	55,177,948		$	117,604,710		$	265,668,317		$	193,022,240
Affiliated investments, at value		82,103,976			99,723			117,176			38,965			71,221
Total investments, at value		593,305,693			55,277,671			117,721,886			265,707,282			193,093,461
Cash		—			—			—			—			—
Receivables:
Investments sold		2,599,915			—			—			—			—
Securities lending		376,379			—			—			—			—
Dividends		—			13,257			23,531			293,845			56,571
Shares sold		—			—			—			1,610,273			—
Total Assets		596,281,987			55,290,928			117,745,417			267,611,400			193,150,032
Liabilities:
Payables:
Collateral upon return of securities loaned		81,899,696			—			—			—			—
Shares repurchased		2,649,027			—			—			—			—
Investments purchased		—			—			—			1,608,263			—
Expenses recaptured		—			—			—			—			8,000
Accrued advisory fees		227,781			20,465			41,235			109,856			81,600
Accrued trustees’ and officer’s fees		26,997			16,850			19,103			22,794			17,379
Accrued expenses		216,360			76,200			92,358			149,889			102,602
Total Liabilities		85,019,861			113,515			152,696			1,890,802			209,581
Net Assets	$	511,262,126		$	55,177,413		$	117,592,721		$	265,720,598		$	192,940,451
Net Assets Consist of:
Shares of beneficial interest	$	594,941,381		$	73,184,125		$	182,008,994		$	302,984,597		$	210,224,238
Undistributed net investment income (loss)		721,335			13,897			603,317			643,888			(14,515	)
Undistributed net realized gain (loss)		(142,213,830	)		(22,279,422	)		(70,736,604	)		(52,611,787	)		(23,566,358	)
Net unrealized appreciation (depreciation)		57,813,240			4,258,813			5,717,014			14,703,900			6,297,086
Net Assets	$	511,262,126		$	55,177,413		$	117,592,721		$	265,720,598		$	192,940,451
Shares outstanding (unlimited amount authorized, $0.01 par value)		9,650,000			2,400,000			3,700,000			8,450,000			5,300,000
Net asset value	$	52.98		$	22.99		$	31.78		$	31.45		$	36.40
Market price	$	52.95		$	22.98		$	31.77		$	31.43		$	36.39
Unaffiliated investments, at cost	$	453,388,477		$	50,919,135		$	111,887,696		$	250,964,417		$	186,725,154
Affiliated investments, at cost	$	82,103,976		$	99,723		$	117,176		$	38,965		$	71,221
Total investments, at cost	$	535,492,453		$	51,018,858		$	112,004,872		$	251,003,382		$	186,796,375
(a) Includes securities on loan with an aggregate value of	$	77,755,803		$	—		$	—		$	—		$	—

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

50

PowerShares Dynamic Media Portfolio (PBS)			PowerShares Dynamic Networking Portfolio (PXQ)			PowerShares Dynamic Oil & Gas Services Portfolio (PXJ)			PowerShares Dynamic Pharmaceuticals Portfolio (PJP)		PowerShares Dynamic Retail Portfolio (PMR)			PowerShares Dynamic Semiconductors Portfolio (PSI)			PowerShares Dynamic Software Portfolio (PSJ)
$	145,691,934		$	27,483,163		$	72,788,221		$	1,738,708,813	$	38,403,565		$	78,915,970		$	57,347,411
	126,221			81,203			96,729			231,856,178		66,101			79,651			79,405
	145,818,155			27,564,366			72,884,950			1,970,564,991		38,469,666			78,995,621			57,426,816
	18,158			—			—			—		—			—			3,693
	2,695,614			—			43,609			7,434,380		—			—			—
	—			—			—			32,378		—			—			—
	16,299			—			53,877			914,213		25,722			23,217			—
	—			—			903,528			—		—			—			2,161,819
	148,548,226			27,564,366			73,885,964			1,978,945,962		38,495,388			79,018,838			59,592,328
	—			—			—			43,069,125		—			—			—
	2,696,048			—			—			7,439,898		—			—			—
	—			—			969,201			—		—			—			2,161,554
	—			—			—			—		—			—			—
	61,347			6,572			24,092			822,411		13,066			30,650			19,674
	19,376			15,757			24,495			39,029		14,986			15,616			16,264
	103,223			57,280			82,486			641,812		56,952			61,961			65,445
	2,879,994			79,609			1,100,274			52,012,275		85,004			108,227			2,262,937
$	145,668,232		$	27,484,757		$	72,785,690		$	1,926,933,687	$	38,410,384		$	78,910,611		$	57,329,391
$	196,562,376		$	57,729,343		$	282,007,985		$	1,570,155,011	$	57,733,987		$	121,691,445		$	74,944,980
	365,169			(13,446	)		152,146			1,561,990		33,064			(13,243	)		69,256
	(60,290,728	)		(34,913,110	)		(204,184,221	)		67,720,264		(20,150,683	)		(45,322,856	)		(23,871,239	)
	9,031,415			4,681,970			(5,190,220	)		287,496,422		794,016			2,555,265			6,186,394
$	145,668,232		$	27,484,757		$	72,785,690		$	1,926,933,687	$	38,410,384		$	78,910,611		$	57,329,391
	5,450,000			750,000			3,850,000			25,900,000		1,000,000			3,000,000			1,350,000
$	26.73		$	36.65		$	18.91		$	74.40	$	38.41		$	26.30		$	42.47
$	26.72		$	36.64		$	18.92		$	74.35	$	38.42		$	26.31		$	42.48
$	136,660,519		$	22,801,193		$	77,978,441		$	1,453,629,499	$	37,609,549		$	76,360,705		$	51,161,017
$	126,221		$	81,203		$	96,729		$	229,439,070	$	66,101		$	79,651		$	79,405
$	136,786,740		$	22,882,396		$	78,075,170		$	1,683,068,569	$	37,675,650		$	76,440,356		$	51,240,422
$	—		$	—		$	—		$	39,409,044	$	—		$	—		$	—

51

Statements of Operations

For the year ended April 30, 2015

	PowerShares Dynamic Biotechnology & Genome Portfolio (PBE)			PowerShares Dynamic Building & Construction Portfolio (PKB)			PowerShares Dynamic Energy Exploration & Production Portfolio (PXE)			PowerShares Dynamic Food & Beverage Portfolio (PBJ)			PowerShares Dynamic Leisure and Entertainment Portfolio (PEJ)
Investment Income:
Unaffiliated dividend income	$	3,443,808		$	661,948		$	2,201,271		$	4,965,841		$	2,437,950
Affiliated dividend income		39			18			20			29			20
Securities lending income		2,082,558			—			—			—			—
Foreign withholding tax		—			—			—			—			(4,276	)
Total Income		5,526,405			661,966			2,201,291			4,965,870			2,433,694
Expenses:
Advisory fees		2,180,384			425,521			596,189			1,527,900			804,261
Sub-licensing fees		130,823			25,531			35,771			91,674			48,255
Accounting & administration fees		79,407			36,771			36,771			62,115			36,595
Professional fees		31,400			26,847			29,324			29,998			29,274
Custodian & transfer agent fees		21,975			5,256			7,735			10,273			5,647
Trustees’ and officer’s fees		15,551			9,946			10,256			14,055			10,747
Recapture (Note 3)		—			—			10,186			—			55,272
Other expenses		43,144			22,537			39,156			34,037			23,318
Total Expenses		2,502,684			552,409			765,388			1,770,052			1,013,369
Less: Waivers		(341	)		(16,400	)		(147	)		(269	)		(166	)
Net Expenses		2,502,343			536,009			765,241			1,769,783			1,013,203
Net Investment Income (Loss)		3,024,062			125,957			1,436,050			3,196,087			1,420,491
Realized and Unrealized Gain (Loss):
Net realized gain (loss) from:
Investment securities		62,694			(7,995,090	)		(21,849,627	)		(14,045,576	)		(12,914,071	)
In-kind redemptions		75,432,431			8,610,515			8,992,589			60,405,936			22,537,053
Foreign currencies		—			—			—			—			(5,841	)
Net realized gain (loss)		75,495,125			615,425			(12,857,038	)		46,360,360			9,617,141
Net change in unrealized appreciation (depreciation) on investment securities		39,345,361			(2,912,498	)		(9,926,226	)		(2,123,925	)		5,914,162
Net realized and unrealized gain (loss)		114,840,486			(2,297,073	)		(22,783,264	)		44,236,435			15,531,303
Net increase (decrease) in net assets resulting from operations	$	117,864,548		$	(2,171,116	)	$	(21,347,214	)	$	47,432,522		$	16,951,794

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

52

PowerShares Dynamic Media Portfolio (PBS)			PowerShares Dynamic Networking Portfolio (PXQ)			PowerShares Dynamic Oil & Gas Services Portfolio (PXJ)			PowerShares Dynamic Pharmaceuticals Portfolio (PJP)			PowerShares Dynamic Retail Portfolio (PMR)			PowerShares Dynamic Semiconductors Portfolio (PSI)			PowerShares Dynamic Software Portfolio (PSJ)
$	2,244,903		$	168,187		$	1,486,273		$	13,885,553		$	293,330		$	604,604		$	473,684
	25			13			17			153			11			13			12
	—			—			—			1,129,887			—			—			—
	(2,681	)		—			(9,001	)		—			—			—			—
	2,242,247			168,200			1,477,289			15,015,593			293,341			604,617			473,696
	785,903			138,170			463,634			7,185,322			118,390			182,632			257,382
	47,154			8,290			27,818			431,119			7,103			10,958			15,443
	34,856			36,770			36,771			258,383			36,771			36,771			36,771
	28,646			25,318			28,154			43,908			25,569			25,313			25,735
	7,233			3,031			5,447			35,552			3,921			3,739			4,118
	10,806			8,383			9,833			32,070			8,246			8,390			8,779
	—			—			—			—			—			—			—
	14,356			15,679			23,604			107,983			14,588			17,056			17,099
	928,954			235,641			595,261			8,094,337			214,588			284,859			365,327
	(198	)		(61,653	)		(11,218	)		(1,313	)		(65,504	)		(54,847	)		(41,127	)
	928,756			173,988			584,043			8,093,024			149,084			230,012			324,200
	1,313,491			(5,788	)		893,246			6,922,569			144,257			374,605			149,496
	(14,919,597	)		(1,707,623	)		(19,164,046	)		108,560,138			(2,021,833	)		(626,459	)		(4,270,041	)
	18,961,846			5,147,515			6,459,484			180,471,236			2,824,997			6,070,811			8,325,321
	—			—			—			—			—			—			—
	4,042,249			3,439,892			(12,704,562	)		289,031,374			803,164			5,444,352			4,055,280
	14,815,252			915,524			(25,846,369	)		92,127,128			827,688			165,344			7,072,718
	18,857,501			4,355,416			(38,550,931	)		381,158,502			1,630,852			5,609,696			11,127,998
$	20,170,992		$	4,349,628		$	(37,657,685	)	$	388,081,071		$	1,775,109		$	5,984,301		$	11,277,494

53

Statements of Changes in Net Assets

For the years ended April 30, 2015 and 2014

	PowerShares Dynamic Biotechnology & Genome Portfolio (PBE)						PowerShares Dynamic Building & Construction Portfolio (PKB)
	2015			2014			2015			2014
Operations:
Net investment income	$	3,024,062		$	244,059		$	125,957		$	11,556
Net realized gain (loss)		75,495,125			87,977,271			615,425			15,368,923
Net change in unrealized appreciation (depreciation)		39,345,361			(20,969,168	)		(2,912,498	)		(5,474,689	)
Net increase (decrease) in net assets resulting from operations		117,864,548			67,252,162			(2,171,116	)		9,905,790
Distributions to Shareholders from:
Net investment income		(2,402,943	)		—			(69,918	)		—
Shareholder Transactions:
Proceeds from shares sold		250,854,414			370,953,512			59,533,158			98,038,267
Value of shares repurchased		(216,373,603	)		(232,339,347	)		(125,802,719	)		(88,376,874	)
Net increase (decrease) in net assets resulting from shares transactions		34,480,811			138,614,165			(66,269,561	)		9,661,393
Increase (Decrease) in Net Assets		149,942,416			205,866,327			(68,510,595	)		19,567,183
Net Assets:
Beginning of year		361,319,710			155,453,383			123,688,008			104,120,825
End of year	$	511,262,126		$	361,319,710		$	55,177,413		$	123,688,008
Undistributed net investment income (loss) at end of year	$	721,335		$	100,216		$	13,897		$	(42,142	)
Changes in Shares Outstanding:
Shares sold		4,800,000			9,650,000			2,700,000			4,600,000
Shares repurchased		(4,250,000	)		(6,050,000	)		(5,900,000	)		(4,300,000	)
Shares outstanding, beginning of year		9,100,000			5,500,000			5,600,000			5,300,000
Shares outstanding, end of year		9,650,000			9,100,000			2,400,000			5,600,000

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

54

PowerShares Dynamic Energy Exploration & Production Portfolio (PXE)						PowerShares Dynamic Food & Beverage Portfolio (PBJ)						PowerShares Dynamic Leisure and Entertainment Portfolio (PEJ)						PowerShares Dynamic Media Portfolio (PBS)
2015			2014			2015			2014			2015			2014			2015			2014
$	1,436,050		$	1,548,772		$	3,196,087		$	4,131,010		$	1,420,491		$	760,630		$	1,313,491		$	947,374
	(12,857,038	)		19,166,300			46,360,360			36,856,531			9,617,141			32,569,351			4,042,249			64,610,167
	(9,926,226	)		4,474,440			(2,123,925	)		(2,492,106	)		5,914,162			(13,361,430	)		14,815,252			(27,651,727	)
	(21,347,214	)		25,189,512			47,432,522			38,495,435			16,951,794			19,968,551			20,170,992			37,905,814
	(1,923,020	)		(1,698,221	)		(4,913,796	)		(1,980,743	)		(1,429,697	)		(649,713	)		(1,051,471	)		(902,729	)
	130,833,909			188,944,898			308,461,538			418,924,441			181,183,360			250,556,813			165,292,831			437,394,072
	(120,243,852	)		(186,590,268	)		(519,631,016	)		(257,294,105	)		(181,694,812	)		(177,711,187	)		(210,173,828	)		(453,755,849	)
	10,590,057			2,354,630			(211,169,478	)		161,630,336			(511,452	)		72,845,626			(44,880,997	)		(16,361,777	)
	(12,680,177	)		25,845,921			(168,650,752	)		198,145,028			15,010,645			92,164,464			(25,761,476	)		20,641,308
	130,272,898			104,426,977			434,371,350			236,226,322			177,929,806			85,765,342			171,429,708			150,788,400
$	117,592,721		$	130,272,898		$	265,720,598		$	434,371,350		$	192,940,451		$	177,929,806		$	145,668,232		$	171,429,708
$	603,317		$	565,347		$	643,888		$	2,361,597		$	(14,515	)	$	94,984		$	365,169		$	103,996
	3,850,000			5,850,000			10,300,000			16,150,000			4,950,000			7,900,000			6,550,000			18,700,000
	(3,600,000	)		(5,850,000	)		(17,950,000	)		(10,050,000	)		(5,150,000	)		(5,550,000	)		(8,300,000	)		(19,000,000	)
	3,450,000			3,450,000			16,100,000			10,000,000			5,500,000			3,150,000			7,200,000			7,500,000
	3,700,000			3,450,000			8,450,000			16,100,000			5,300,000			5,500,000			5,450,000			7,200,000

55

Statements of Changes in Net Assets (continued)

For the years ended April 30, 2015 and 2014

	PowerShares Dynamic Networking Portfolio (PXQ)						PowerShares Dynamic Oil & Gas Services Portfolio (PXJ)
	2015			2014			2015			2014
Operations:
Net investment income (loss)	$	(5,788	)	$	(37,678	)	$	893,246		$	376,843
Net realized gain (loss)		3,439,892			3,603,157			(12,704,562	)		4,703,749
Net change in unrealized appreciation (depreciation)		915,524			3,901,364			(25,846,369	)		22,095,104
Net increase (decrease) in net assets resulting from operations		4,349,628			7,466,843			(37,657,685	)		27,175,696
Distributions to Shareholders from:
Net investment income		—			(230,610	)		(1,024,494	)		(414,523	)
Net realized gains		—			—			—			—
Return of capital		—			—			—			—
Total distributions to shareholders		—			(230,610	)		(1,024,494	)		(414,523	)
Shareholder Transactions:
Proceeds from shares sold		17,339,824			15,967,749			45,413,320			89,598,341
Value of shares repurchased		(23,847,484	)		(23,560,809	)		(69,794,901	)		(97,482,772	)
Net increase (decrease) in net assets resulting from shares transactions		(6,507,660	)		(7,593,060	)		(24,381,581	)		(7,884,431	)
Increase (Decrease) in Net Assets		(2,158,032	)		(356,827	)		(63,063,760	)		18,876,742
Net Assets:
Beginning of year		29,642,789			29,999,616			135,849,450			116,972,708
End of year	$	27,484,757		$	29,642,789		$	72,785,690		$	135,849,450
Undistributed net investment income (loss) at end of year	$	(13,446	)	$	(22,986	)	$	152,146		$	206,370
Changes in Shares Outstanding:
Shares sold		500,000			550,000			2,000,000			3,650,000
Shares repurchased		(700,000	)		(800,000	)		(3,000,000	)		(4,000,000	)
Shares outstanding, beginning of year		950,000			1,200,000			4,850,000			5,200,000
Shares outstanding, end of year		750,000			950,000			3,850,000			4,850,000

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

56

PowerShares Dynamic Pharmaceuticals Portfolio (PJP)						PowerShares Dynamic Retail Portfolio (PMR)						PowerShares Dynamic Semiconductors Portfolio (PSI)						PowerShares Dynamic Software Portfolio (PSJ)
2015			2014			2015			2014			2015			2014			2015			2014
$	6,922,569		$	4,199,747		$	144,257		$	307,680		$	374,605		$	90,462		$	149,496		$	(6,877	)
	289,031,374			145,620,775			803,164			6,391,166			5,444,352			4,076,053			4,055,280			15,011,409
	92,127,128			109,005,911			827,688			(3,531,138	)		165,344			1,207,489			7,072,718			(8,514,120	)
	388,081,071			258,826,433			1,775,109			3,167,708			5,984,301			5,374,004			11,277,494			6,490,412
	(6,839,864	)		(3,255,531	)		(205,959	)		(250,815	)		(415,087	)		(107,690	)		(49,038	)		—
	(36,562,562	)		—			—			—			—			—			—			—
	—			—			—			—			(146,696	)		—			—			—
	(43,402,426	)		(3,255,531	)		(205,959	)		(250,815	)		(561,783	)		(107,690	)		(49,038	)		—
	896,877,939			645,323,430			38,457,393			52,577,848			89,671,046			20,754,635			47,870,360			50,413,954
	(418,629,721	)		(265,192,841	)		(26,479,719	)		(55,381,501	)		(36,803,945	)		(22,144,327	)		(56,104,715	)		(50,826,283	)
	478,248,218			380,130,589			11,977,674			(2,803,653	)		52,867,101			(1,389,692	)		(8,234,355	)		(412,329	)
	822,926,863			635,701,491			13,546,824			113,240			58,289,619			3,876,622			2,994,101			6,078,083
	1,104,006,824			468,305,333			24,863,560			24,750,320			20,620,992			16,744,370			54,335,290			48,257,207
$	1,926,933,687		$	1,104,006,824		$	38,410,384		$	24,863,560		$	78,910,611		$	20,620,992		$	57,329,391		$	54,335,290
$	1,561,990		$	1,479,285		$	33,064		$	94,766		$	(13,243	)	$	27,239		$	69,256		$	(31,202	)
	12,950,000			12,600,000			1,000,000			1,600,000			3,450,000			1,150,000			1,200,000			1,500,000
	(6,200,000	)		(4,950,000	)		(750,000	)		(1,700,000	)		(1,450,000	)		(1,250,000	)		(1,450,000	)		(1,500,000	)
	19,150,000			11,500,000			750,000			850,000			1,000,000			1,100,000			1,600,000			1,600,000
	25,900,000			19,150,000			1,000,000			750,000			3,000,000			1,000,000			1,350,000			1,600,000

57

Financial Highlights

PowerShares Dynamic Biotechnology & Genome Portfolio (PBE)

	Year Ended April 30,
	2015			2014			2013			2012			2011
Per Share Operating Performance:
Net asset value at beginning of year	$	39.71		$	28.26		$	22.26		$	23.14		$	19.67
Net investment income (loss)(a)		0.34			0.03			(0.05	)		(0.04	)		(0.05	)
Net realized and unrealized gain (loss) on investments		13.21			11.42			6.05			(0.84	)		3.52
Total from investment operations		13.55			11.45			6.00			(0.88	)		3.47
Distributions to shareholders from:
Net investment income		(0.28	)		—			—			—			—
Net asset value at end of year	$	52.98		$	39.71		$	28.26		$	22.26		$	23.14
Market price at end of year(b)	$	52.95		$	39.68		$	28.27		$	22.21		$	23.18
Net Asset Value Total Return:(c)		34.25	%		40.52	%		26.96	%		(3.80	)%		17.64	%
Market Price Total Return(c)		34.28	%		40.36	%		27.29	%		(4.18	)%		17.78	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	511,262		$	361,320		$	155,453		$	136,903		$	217,553
Ratio to average net assets of:
Expenses, after Waivers		0.57	%		0.59	%		0.63	%		0.63	%		0.63	%
Expenses, prior to Waivers		0.57	%		0.59	%		0.63	%		0.64	%		0.65	%
Net investment income (loss), after Waivers		0.69	%		0.09	%		(0.20	)%		(0.21	)%		(0.23	)%
Portfolio turnover rate(d)		95	%		64	%		53	%		53	%		81	%

^(a)  Based on average shares outstanding.

^(b)  The mean between the last bid and ask prices.

^(c)  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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(d)  Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

58

Financial Highlights (continued)

PowerShares Dynamic Building & Construction Portfolio (PKB)

	Year Ended April 30,
	2015			2014			2013			2012			2011
Per Share Operating Performance:
Net asset value at beginning of year	$	22.09		$	19.65		$	14.23		$	14.11		$	13.92
Net investment income(a)		0.03			0.00	(b)		0.07			0.02			0.68	(c)
Net realized and unrealized gain on investments		0.89			2.44			5.44			0.12			0.29	(d)
Total from investment operations		0.92			2.44			5.51			0.14			0.97
Distributions to shareholders from:
Net investment income		(0.02	)		—			(0.09	)		(0.02	)		(0.66	)
Return of capital		—			—			—			—			(0.12	)
Total distributions		(0.02	)		—			(0.09	)		(0.02	)		(0.78	)
Net asset value at end of year	$	22.99		$	22.09		$	19.65		$	14.23		$	14.11
Market price at end of year(e)	$	22.98		$	22.10		$	19.63		$	14.20		$	14.09
Net Asset Value Total Return:(f)		4.17	%		12.42	%		38.85	%		0.99	%		7.49	%
Market Price Total Return(f)		4.08	%		12.58	%		39.01	%		0.92	%		7.34	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	55,177		$	123,688		$	104,121		$	30,600		$	40,204
Ratio to average net assets of:
Expenses, after Waivers		0.63	%		0.63	%		0.63	%		0.63	%		0.63	%
Expenses, prior to Waivers		0.65	%		0.63	%		0.69	%		1.01	%		0.91	%
Net investment income, after Waivers		0.15	%		0.01	%		0.44	%		0.12	%		5.25	%(c)
Portfolio turnover rate(g)		96	%		117	%		95	%		72	%		75	%

^(a)  Based on average shares outstanding.

^(b)  Amount represents less than $0.005.

^(c)  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 $0.03 and 0.26%, respectively.

^(d)  Due to the timing of creations and redemptions of capital shares, the net realized and unrealized gain (loss) per share is not in accord with the Fund’s change in net realized and unrealized gain (loss) on investment securities and in-kind transactions for the period.

^(e)  The mean between the last bid and ask prices.

^(f)  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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(g)  Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.

PowerShares Dynamic Energy Exploration & Production Portfolio (PXE)

	Year Ended April 30,
	2015			2014			2013			2012			2011
Per Share Operating Performance:
Net asset value at beginning of year	$	37.76		$	30.27		$	24.58		$	27.67		$	18.46
Net investment income(a)		0.39			0.48			0.53			0.19			0.12
Net realized and unrealized gain (loss) on investments		(5.84	)		7.55			5.81			(2.94	)		9.21
Total from investment operations		(5.45	)		8.03			6.34			(2.75	)		9.33
Distributions to shareholders from:
Net investment income		(0.53	)		(0.54	)		(0.65	)		(0.34	)		(0.12	)
Net asset value at end of year	$	31.78		$	37.76		$	30.27		$	24.58		$	27.67
Market price at end of year(b)	$	31.77		$	37.76		$	30.23		$	24.57		$	27.65
Net Asset Value Total Return:(c)		(14.51	)%		26.93	%		26.14	%		(9.86	)%		50.80	%
Market Price Total Return(c)		(14.54	)%		27.10	%		26.03	%		(9.83	)%		50.69	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	117,593		$	130,273		$	104,427		$	67,592		$	118,975
Ratio to average net assets of:
Expenses, after Waivers		0.64	%		0.64	%		0.65	%		0.65	%		0.63	%
Expenses, prior to Waivers		0.64	%		0.64	%		0.69	%		0.73	%		0.76	%
Net investment income, after Waivers		1.20	%		1.46	%		1.97	%		0.81	%		0.57	%
Portfolio turnover rate(d)		140	%		96	%		80	%		94	%		57	%

^(a)  Based on average shares outstanding.

^(b)  The mean between the last bid and ask prices.

^(c)  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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(d)  Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

59

Financial Highlights (continued)

PowerShares Dynamic Food & Beverage Portfolio (PBJ)

	Year Ended April 30,
	2015			2014			2013			2012			2011
Per Share Operating Performance:
Net asset value at beginning of year	$	26.98		$	23.62		$	19.77		$	19.76		$	16.00
Net investment income(a)		0.31			0.38			0.26			0.22			0.24
Net realized and unrealized gain (loss) on investments		4.58			3.19			3.92			(0.03	)		3.73
Total from investment operations		4.89			3.57			4.18			0.19			3.97
Distributions to shareholders from:
Net investment income		(0.42	)		(0.21	)		(0.33	)		(0.18	)		(0.21	)
Net asset value at end of year	$	31.45		$	26.98		$	23.62		$	19.77		$	19.76
Market price at end of year(b)	$	31.43		$	26.99		$	23.61		$	19.77		$	19.81
Net Asset Value Total Return:(c)		18.25	%		15.16	%		21.45	%		1.02	%		24.99	%
Market Price Total Return(c)		18.13	%		15.25	%		21.40	%		0.77	%		25.23	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	265,721		$	434,371		$	236,226		$	169,039		$	91,881
Ratio to average net assets of:
Expenses, after Waivers		0.58	%		0.61	%		0.63	%		0.63	%		0.63	%
Expenses, prior to Waivers		0.58	%		0.61	%		0.63	%		0.64	%		0.71	%
Net investment income, after Waivers		1.05	%		1.47	%		1.28	%		1.13	%		1.39	%
Portfolio turnover rate(d)		124	%		145	%		92	%		134	%		73	%

^(a)  Based on average shares outstanding.

^(b)  The mean between the last bid and ask prices.

^(c)  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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(d)  Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.

PowerShares Dynamic Leisure and Entertainment Portfolio (PEJ)

	Year Ended April 30,
	2015			2014			2013			2012			2011
Per Share Operating Performance:
Net asset value at beginning of year	$	32.35		$	27.23		$	22.18		$	19.34		$	16.52
Net investment income(a)		0.31			0.15			0.12			0.15			0.16
Net realized and unrealized gain on investments		4.04			5.10			5.09			2.82			2.81
Total from investment operations		4.35			5.25			5.21			2.97			2.97
Distributions to shareholders from:
Net investment income		(0.30	)		(0.13	)		(0.16	)		(0.13	)		(0.15	)
Net asset value at end of year	$	36.40		$	32.35		$	27.23		$	22.18		$	19.34
Market price at end of year(b)	$	36.39		$	32.34		$	27.21		$	22.20		$	19.34
Net Asset Value Total Return:(c)		13.47	%		19.29	%		23.67	%		15.49	%		18.03	%
Market Price Total Return(c)		13.47	%		19.34	%		23.47	%		15.59	%		17.89	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	192,940		$	177,930		$	85,765		$	57,679		$	60,933
Ratio to average net assets of:
Expenses, after Waivers		0.63	%		0.63	%		0.63	%		0.63	%		0.63	%
Expenses, prior to Waivers		0.63	%		0.63	%		0.69	%		0.80	%		0.78	%
Net investment income, after Waivers		0.88	%		0.48	%		0.52	%		0.80	%		0.92	%
Portfolio turnover rate(d)		187	%		171	%		93	%		90	%		58	%

^(a)  Based on average shares outstanding.

^(b)  The mean between the last bid and ask prices.

^(c)  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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(d)  Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

60

Financial Highlights (continued)

PowerShares Dynamic Media Portfolio (PBS)

	Year Ended April 30,
	2015			2014			2013			2012			2011
Per Share Operating Performance:
Net asset value at beginning of year	$	23.81		$	20.11		$	14.84		$	15.61		$	13.68
Net investment income(a)		0.21			0.09			0.12			0.08			0.07
Net realized and unrealized gain (loss) on investments		2.89			3.70			5.28			(0.76	)		1.93
Total from investment operations		3.10			3.79			5.40			(0.68	)		2.00
Distributions to shareholders from:
Net investment income		(0.18	)		(0.09	)		(0.13	)		(0.09	)		(0.07	)
Net asset value at end of year	$	26.73		$	23.81		$	20.11		$	14.84		$	15.61
Market price at end of year(b)	$	26.72		$	23.79		$	20.10		$	14.84		$	15.61
Net Asset Value Total Return:(c)		13.04	%		18.87	%		36.62	%		(4.33	)%		14.68	%
Market Price Total Return(c)		13.09	%		18.83	%		36.55	%		(4.33	)%		14.51	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	145,668		$	171,430		$	150,788		$	137,975		$	156,881
Ratio to average net assets of:
Expenses, after Waivers		0.59	%		0.62	%		0.63	%		0.63	%		0.63	%
Expenses, prior to Waivers		0.59	%		0.62	%		0.63	%		0.65	%		0.69	%
Net investment income, after Waivers		0.84	%		0.38	%		0.71	%		0.60	%		0.57	%
Portfolio turnover rate(d)		131	%		120	%		70	%		89	%		53	%

^(a)  Based on average shares outstanding.

^(b)  The mean between the last bid and ask prices.

^(c)  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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(d)  Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.

PowerShares Dynamic Networking Portfolio (PXQ)

	Year Ended April 30,
	2015			2014			2013			2012			2011
Per Share Operating Performance:
Net asset value at beginning of year	$	31.20		$	25.00		$	27.71		$	29.20		$	21.08
Net investment income (loss)(a)		(0.01	)		(0.04	)		0.20	(b)		(0.06	)		(0.10	)
Net realized and unrealized gain (loss) on investments		5.46			6.44			(2.85	)		(1.43	)		8.33
Total from investment operations		5.45			6.40			(2.65	)		(1.49	)		8.23
Distributions to shareholders from:
Net investment income		—			(0.20	)		(0.06	)		—			—
Return of capital		—			—			—			—			(0.11	)
Total distributions		—			(0.20	)		(0.06	)		—			(0.11	)
Net asset value at end of year	$	36.65		$	31.20		$	25.00		$	27.71		$	29.20
Market price at end of year(c)	$	36.64		$	31.19		$	24.97		$	27.68		$	29.20
Net Asset Value Total Return:(d)		17.47	%		25.69	%		(9.57	)%		(5.10	)%		39.08	%
Market Price Total Return(d)		17.48	%		25.80	%		(9.58	)%		(5.20	)%		38.89	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	27,485		$	29,643		$	30,000		$	81,739		$	172,291
Ratio to average net assets of:
Expenses, after Waivers		0.63	%		0.63	%		0.64	%		0.63	%		0.63	%
Expenses, prior to Waivers		0.85	%		0.82	%		0.75	%		0.67	%		0.70	%
Net investment income (loss), after Waivers		(0.02	)%		(0.12	)%		0.81	%(b)		(0.22	)%		(0.38	)%
Portfolio turnover rate(e)		74	%		69	%		68	%		84	%		61	%

^(a)  Based on average shares outstanding.

^(b)  Net investment income per share and the ratio of net investment income to average net assets include a special cash dividend received of $1 per share owned of Tellabs, Inc. on December 24, 2012. Net investment loss per share and the ratio of net investment loss to average net assets excluding the special dividend are $(0.01) and (0.05)%, respectively.

^(c)  The mean between the last bid and ask prices.

^(d)  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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(e)  Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

61

Financial Highlights (continued)

PowerShares Dynamic Oil & Gas Services Portfolio (PXJ)

	Year Ended April 30,
	2015			2014			2013			2012			2011
Per Share Operating Performance:
Net asset value at beginning of year	$	28.01		$	22.49		$	20.48		$	26.38		$	18.03
Net investment income (loss)(a)		0.22			0.08			0.04			(0.01	)		0.07
Net realized and unrealized gain (loss) on investments		(9.07	)		5.53	(b)		2.00			(5.89	)		8.36
Total from investment operations		(8.85	)		5.61			2.04			(5.90	)		8.43
Distributions to shareholders from:
Net investment income		(0.25	)		(0.09	)		(0.03	)		(0.00	)(c)		(0.08	)
Net asset value at end of year	$	18.91		$	28.01		$	22.49		$	20.48		$	26.38
Market price at end of year(d)	$	18.92		$	28.00		$	22.49		$	20.48		$	26.38
Net Asset Value Total Return:(e)		(31.67	)%		24.98	%(b)		9.95	%		(22.36	)%		46.84	%
Market Price Total Return(e)		(31.61	)%		24.94	%		9.95	%		(22.36	)%		46.93	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	72,786		$	135,849		$	116,973		$	147,485		$	309,972
Ratio to average net assets of:
Expenses, after Waivers		0.63	%		0.61	%		0.62	%		0.63	%		0.63	%
Expenses, prior to Waivers		0.64	%		0.61	%		0.62	%		0.63	%		0.64	%
Net investment income (loss), after Waivers		0.96	%		0.31	%		0.18	%		(0.03	)%		0.36	%
Portfolio turnover rate(f)		79	%		259	%(b)		68	%		70	%		39	%

^(a)  Based on average shares outstanding.

^(b)  Amount includes the effect of the Adviser pay-in for an economic loss of $0.43 per share. Had the pay-in not been made, the net asset value total return would have been 23.06%. In addition, the portfolio turnover calculation includes the value of securities purchased and sold related to this transaction.

^(c)  Amount represents less than $0.005.

^(d)  The mean between the last bid and ask prices.

^(e)  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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(f)  Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.

PowerShares Dynamic Pharmaceuticals Portfolio (PJP)

	Year Ended April 30,
	2015			2014			2013			2012			2011
Per Share Operating Performance:
Net asset value at beginning of period	$	57.65		$	40.72		$	32.00		$	26.15		$	19.55
Net investment income(a)		0.32			0.26			0.54	(b)		0.22			0.17
Net realized and unrealized gain on investments		18.42			16.90			8.72			5.83			6.56
Total from investment operations		18.74			17.16			9.26			6.05			6.73
Distributions to shareholders from:
Net investment income		(0.34	)		(0.23	)		(0.54	)		(0.20	)		(0.13	)
Net realized gains		(1.65	)		—			—			—			—
Total distributions		(1.99	)		(0.23	)		(0.54	)		(0.20	)		(0.13	)
Net asset value at end of period	$	74.40		$	57.65		$	40.72		$	32.00		$	26.15
Market price at end of period(c)	$	74.35		$	57.60		$	40.72		$	31.99		$	26.17
Net Asset Value Total Return:(d)		32.95	%		42.27	%		29.25	%		23.29	%		34.55	%
Market Price Total Return(d)		32.97	%		42.15	%		29.29	%		23.16	%		34.73	%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	1,926,934		$	1,104,007		$	468,305		$	270,385		$	87,606
Ratio to average net assets of:
Expenses, after Waivers		0.56	%		0.58	%		0.63	%		0.63	%		0.63	%
Expenses, prior to Waivers		0.56	%		0.58	%		0.63	%		0.64	%		0.76	%
Net investment income, after Waivers		0.48	%		0.52	%		1.52	%(b)		0.77	%		0.78	%
Portfolio turnover rate(e)		47	%		39	%		24	%		23	%		9	%

^(a)  Based on average shares outstanding.

^(b)  Net investment income per share and the ratio of net investment income to average net assets include a special cash dividend received of $4 per share owned of Warner Chilcott PLC. on August 29, 2012. Net investment income per share and the ratio of net investment income to average net assets excluding the special dividend are $0.32 and 0.91%, respectively.

^(c)  The mean between the last bid and ask prices.

^(d)  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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(e)  Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

62

Financial Highlights (continued)

PowerShares Dynamic Retail Portfolio (PMR)

	Year Ended April 30,
	2015			2014			2013			2012			2011
Per Share Operating Performance:
Net asset value at beginning of year	$	33.15		$	29.12		$	25.98		$	21.88		$	18.67
Net investment income(a)		0.22			0.32			0.66			0.16			0.18
Net realized and unrealized gain on investments		5.38			3.99			3.11			4.17			3.21
Total from investment operations		5.60			4.31			3.77			4.33			3.39
Distributions to shareholders from:
Net investment income		(0.34	)		(0.28	)		(0.63	)		(0.23	)		(0.18	)
Net asset value at end of year	$	38.41		$	33.15		$	29.12		$	25.98		$	21.88
Market price at end of year(b)	$	38.42		$	33.14		$	29.11		$	25.98		$	21.90
Net Asset Value Total Return:(c)		16.97	%		14.81	%		14.87	%		20.06	%		18.35	%
Market Price Total Return(c)		17.04	%		14.81	%		14.83	%		19.95	%		18.39	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	38,410		$	24,864		$	24,750		$	76,643		$	13,130
Ratio to average net assets of:
Expenses, after Waivers		0.63	%		0.63	%		0.63	%		0.63	%		0.63	%
Expenses, prior to Waivers		0.91	%		0.79	%		0.74	%		0.87	%		1.63	%
Net investment income, after Waivers		0.61	%		0.96	%		2.59	%		0.75	%		1.01	%
Portfolio turnover rate(d)		111	%		184	%		83	%		111	%		102	%

^(a)  Based on average shares outstanding.

^(b)  The mean between the last bid and ask prices.

^(c)  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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(d)  Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.

PowerShares Dynamic Semiconductors Portfolio (PSI)

	Year Ended April 30,
	2015			2014			2013			2012			2011
Per Share Operating Performance:
Net asset value at beginning of year	$	20.62		$	15.22		$	15.75		$	18.19		$	14.29
Net investment income(a)		0.25	(b)		0.10			0.11			0.06			0.01
Net realized and unrealized gain (loss) on investments		5.88			5.41			(0.52	)		(2.47	)		3.92
Total from investment operations		6.13			5.51			(0.41	)		(2.41	)		3.93
Distribution to shareholder from:
Net investment income		(0.33	)		(0.11	)		(0.12	)		(0.03	)		(0.01	)
Return of capital		(0.12	)		—			—			—			(0.02	)
Total distributions		(0.45	)		(0.11	)		(0.12	)		(0.03	)		(0.03	)
Net asset value at end of year	$	26.30		$	20.62		$	15.22		$	15.75		$	18.19
Market price at end of year(c)	$	26.31		$	20.62		$	15.19		$	15.71		$	18.20
Net Asset Value Total Return:(d)		29.90	%		36.38	%		(2.56	)%		(13.20	)%		27.57	%
Market Price Total Return(d)		29.95	%		36.66	%		(2.50	)%		(13.47	)%		27.64	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	78,911		$	20,621		$	16,744		$	21,261		$	42,749
Ratio to average net assets of:
Expenses, after Waivers		0.63	%		0.63	%		0.63	%		0.63	%		0.63	%
Expenses, prior to Waivers		0.78	%		1.05	%		1.05	%		1.02	%		0.97	%
Net investment income, after Waivers		1.03	%(b)		0.55	%		0.77	%		0.42	%		0.04	%
Portfolio turnover rate(e)		103	%		126	%		91	%		57	%		64	%

^(a)  Based on average shares outstanding.

^(b)  Net investment income per share and the ratio of net investment income to average net assets include a significant dividend received of $16.50 per share owned of KLA-Tencor Corp. on November 26, 2014. Net investment income per share and the ratio of net investment income to average net assets excluding the significant dividend are $0.05 and 0.22%, respectively.

^(c)  The mean between the last bid and ask prices.

^(d)  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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(e)  Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

63

Financial Highlights (continued)

PowerShares Dynamic Software Portfolio (PSJ)

	Year Ended April 30,
	2015			2014			2013			2012			2011
Per Share Operating Performance:
Net asset value at beginning of period	$	33.96		$	30.16		$	26.87		$	27.47		$	22.54
Net investment income (loss)(a)		0.11			(0.00	)(b)		(0.01	)		(0.07	)		(0.07	)
Net realized and unrealized gain (loss) on investments		8.44			3.80			3.30			(0.53	)		5.00
Total from investment operations		8.55			3.80			3.29			(0.60	)		4.93
Distributions to shareholders from:
Net investment income		(0.04	)		—			—			—			—
Net asset value at end of period	$	42.47		$	33.96		$	30.16		$	26.87		$	27.47
Market price at end of period(c)	$	42.48		$	33.93		$	30.12		$	26.87		$	27.48
Net Asset Value Total Return:(d)		25.18	%		12.60	%		12.24	%		(2.19	)%		21.87	%
Market Price Total Return(d)		25.32	%		12.65	%		12.09	%		(2.22	)%		21.86	%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	57,329		$	54,335		$	48,257		$	49,710		$	83,774
Ratio to average net assets of:
Expenses, after Waivers		0.63	%		0.63	%		0.63	%		0.63	%		0.63	%
Expenses, prior to Waivers		0.71	%		0.69	%		0.74	%		0.78	%		0.77	%
Net investment income (loss), after Waivers		0.29	%		(0.01	)%		(0.03	)%		(0.29	)%		(0.29	)%
Portfolio turnover rate(e)		132	%		150	%		95	%		100	%		46	%

^(a)  Based on average shares outstanding.

^(b)  Amount represents less than $0.005.

^(c)  The mean between the last bid and ask prices.

^(d)  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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(e)  Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

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Notes to Financial Statements

PowerShares Exchange-Traded Fund Trust

April 30, 2015

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, 2015, the Trust offered fifty-three portfolios. This report includes the following portfolios:

Full Name	Short Name
PowerShares Dynamic Biotechnology & Genome Portfolio (PBE)	“Dynamic Biotechnology & Genome Portfolio”
PowerShares Dynamic Building & Construction Portfolio (PKB)	“Dynamic Building & Construction Portfolio”
PowerShares Dynamic Energy Exploration & Production Portfolio (PXE)	“Dynamic Energy Exploration & Production Portfolio”
PowerShares Dynamic Food & Beverage Portfolio (PBJ)	“Dynamic Food & Beverage Portfolio”
PowerShares Dynamic Leisure and Entertainment Portfolio (PEJ)	“Dynamic Leisure and Entertainment Portfolio”
PowerShares Dynamic Media Portfolio (PBS)	“Dynamic Media Portfolio”
PowerShares Dynamic Networking Portfolio (PXQ)	“Dynamic Networking Portfolio”
PowerShares Dynamic Oil & Gas Services Portfolio (PXJ)	“Dynamic Oil & Gas Services Portfolio”
PowerShares Dynamic Pharmaceuticals Portfolio (PJP)	“Dynamic Pharmaceuticals Portfolio”
PowerShares Dynamic Retail Portfolio (PMR)	“Dynamic Retail Portfolio”
PowerShares Dynamic Semiconductors Portfolio (PSI)	“Dynamic Semiconductors Portfolio”
PowerShares Dynamic Software Portfolio (PSJ)	“Dynamic Software Portfolio”

Each portfolio (each, a “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 NYSE Arca, Inc.

The market price of each Share may differ to some degree from the Fund’s net asset value (“NAV”). 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 principally in exchange for the deposit or delivery of a basket of securities (“Deposit Securities”). 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 generally correspond (before fees and expenses) to the price and yield of its respective index listed below (each, an “Underlying Index”):

Fund	Underlying Index
Dynamic Biotechnology & Genome Portfolio	Dynamic Biotech & Genome IntellidexSM Index
Dynamic Building & Construction Portfolio	Dynamic Building & Construction IntellidexSM Index
Dynamic Energy Exploration & Production Portfolio	Dynamic Energy Exploration & Production IntellidexSM Index
Dynamic Food & Beverage Portfolio	Dynamic Food & Beverage IntellidexSM Index
Dynamic Leisure and Entertainment Portfolio	Dynamic Leisure & Entertainment IntellidexSM Index
Dynamic Media Portfolio	Dynamic Media IntellidexSM Index
Dynamic Networking Portfolio	Dynamic Networking IntellidexSM Index
Dynamic Oil & Gas Services Portfolio	Dynamic Oil Services IntellidexSM Index
Dynamic Pharmaceuticals Portfolio	Dynamic Pharmaceutical IntellidexSM Index
Dynamic Retail Portfolio	Dynamic Retail IntellidexSM Index
Dynamic Semiconductors Portfolio	Dynamic Semiconductor IntellidexSM Index
Dynamic Software Portfolio	Dynamic Software IntellidexSM Index

Note 2. Significant Accounting Policies

The preparation of the financial statements in accordance with accounting principles generally accepted in the United States of America (“GAAP”) 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

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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. The following is a summary of the significant accounting policies followed by the Funds in preparation of their financial statements.

A. Security Valuation

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

A security listed or traded on an exchange (except convertible securities) 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. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked 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 asked prices. For purposes of determining NAV per Share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).

Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end of day NAV per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the 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.

Debt obligations (including convertible securities) 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 (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Securities with a demand feature exercisable within one to seven days are valued at par. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

Foreign securities’ (including foreign exchange contracts’) prices 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 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 Invesco PowerShares Capital Management LLC (the “Adviser”) determines 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’ prices 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. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.

Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith following procedures approved by the Board of Trustees. Issuer-specific events, market trends, bid/asked 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.

Each Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.

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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

Index Risk. Unlike many investment companies, the Funds do not utilize investing strategies that seek returns in excess of their Underlying Indexes. Therefore, a Fund would not necessarily buy or sell a security unless that security is added or removed, respectively, from its respective Underlying Index, even if that security generally is underperforming.

Equity Risk. Equity risk is the risk that the value of the securities that each Fund holds will fall due to general market and economic conditions, perceptions regarding the industries in which the issuers of securities that a Fund holds participate or factors relating to specific companies in which the Fund invests. For example, an adverse event, such as an unfavorable earnings report, may depress the value of securities a Fund holds; the price of securities may be particularly sensitive to general movements in the stock market; or a drop in the stock market may depress the price of most or all of the securities a Fund holds. In addition, securities of an issuer in the Fund’s portfolio may decline in price if the issuer fails to make anticipated dividend payments because, among other reasons, the issuer of the security experiences a decline in its financial condition.

Industry Concentration Risk. In following its methodology, each Fund’s Underlying Index from time to time may be concentrated to a significant degree in securities of issuers located in a single industry or a sector. To the extent that an Underlying Index concentrates in the securities of issuers in a particular industry or sector, each Fund will also concentrate its investments to approximately the same extent. By concentrating its investments in an industry or sector, a Fund may face more risks than if it were diversified broadly over numerous industries or sectors. In addition, at times, an industry or sector may be out of favor and underperform other industries or the market as a whole. Any factors detrimental to the performance of such industry or sector will disproportionately impact a Fund’s NAV.

Non-Diversified Fund Risk. Each Fund is non-diversified and can invest a greater portion of its assets in securities of individual issuers than diversified funds. 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. This may increase a Fund’s volatility and cause the performance of a relatively small number of issuers to have a greater impact on a Fund’s performance.

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 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.

Small and Medium Capitalization Company Risk. Investing in securities of small and medium capitalization companies involves greater risk than customarily is 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 focus are still evolving and, as a result, they may be more sensitive to changing market conditions.

Portfolio Turnover Risk. The Funds may engage in frequent trading of their portfolio securities in connection with the rebalancing or adjustment of their respective Underlying Index. A portfolio turnover rate of 200%, for example, is equivalent to a Fund buying and selling all of its securities two times during the course of a year. A high portfolio turnover rate (such as 100% or more) could result in high brokerage costs for a Fund. While a high portfolio turnover rate can result in an increase in taxable capital gain distributions to a Fund’s shareholders, each Fund will seek to utilize an in-kind creation and redemption mechanism to minimize realization of capital gains to the extent possible.

C. Federal Income Taxes

Each Fund intends to comply with the provisions of the Internal Revenue Code of 1986, as amended (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.

Each Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed each Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.

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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 U.S. federal tax returns and tax returns in 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 Transactions and Investment Income

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

Corporate actions (including cash dividends) are recorded net of non-reclaimable foreign tax withholdings on the ex-date.

E. Expenses

Expenses of the Trust that are directly identifiable to a specific Fund are applied to that Fund. Expenses of the Trust 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 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 Index, any distribution fees or expenses, litigation expenses, fees payable to the Trust’s Board members who are not “interested persons” (as defined in the 1940 Act) of the Trust (the “Independent Trustees”) or the Adviser, expenses incurred in connection with the Board members’ services, including travel expenses and legal fees of counsel for the Independent Trustees, acquired fund fees and expenses, if any, and extraordinary expenses.

To the extent a Fund invests in other investment companies, the expenses shown 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 such investment companies’ expenses are included in the realized and unrealized gain or loss on the investments in the investment companies.

F. Dividends and Distributions to Shareholders

Each Fund declares and pays dividends from net investment income, if any, to its shareholders quarterly and records such dividends on ex-dividend date. Generally, each Fund distributes net realized taxable capital gains, if any, annually in cash and records them on ex-dividend date. Such distributions on a tax basis are determined in conformity with federal 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 year-end.

G. Securities Lending

During the fiscal year ended April 30, 2015, Dynamic Biotechnology & Genome Portfolio and Dynamic Pharmaceuticals Portfolio participated in securities lending. Each Fund loaned portfolio securities having a market value up to one-third of each Fund’s total assets. Such loans are secured by cash collateral equal to no less than 102% (105% for international) of the market value of the loaned securities determined daily by the securities lending provider. Cash collateral received in connection with these loans is invested in an affiliated money market fund and is shown as such on the Schedule of Investments. It is the policy of these Funds to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. Lending securities entails a risk of loss to a Fund if, and to the extent that, the market value of the securities loaned were to increase, and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. A Fund could experience delays and costs in gaining access to the collateral. A Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, are included in Securities lending income on the Statements of Operations. The aggregate value of securities out on loan, if any, is shown on the Statements of Assets and Liabilities.

Note 3. Investment Advisory Agreement and Other Agreements

The Trust has entered into an Investment Advisory Agreement with the Adviser on behalf of each Fund, pursuant to which the Adviser has overall responsibility for the selection and ongoing monitoring of the Funds’ investments, managing the Funds’ business affairs and providing certain clerical, bookkeeping and other administrative services. Pursuant to that Investment Advisory Agreement, each Fund has agreed to pay the Adviser an annual fee of 0.50% of the Fund’s average daily net assets.

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The Trust also has entered into an Amended and Restated Excess Expense Agreement (the “Expense Agreement”) with the Adviser on behalf of each Fund, pursuant to which the Adviser has agreed to waive fees and/or pay Fund expenses to the extent necessary to prevent the operating expenses (excluding interest expenses, brokerage commissions and other trading expenses, sub-licensing fees, offering costs, taxes, acquired fund fees and expenses, if any, and extraordinary expenses) of each Fund from exceeding 0.60% of the Fund’s average daily net assets per year (the “Expense Cap”), through at least August 31, 2016. Offering costs excluded from the Expense Cap for each Fund are: (a) initial legal fees pertaining to the Fund’s 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. Unless the Adviser continues the Expense Agreement, it will terminate on August 31, 2016. The Expense Agreement cannot be terminated during its term. The Adviser did not waive fees and/or pay Fund expenses during the period under this Expense Cap for Dynamic Biotechnology & Genome Portfolio, Dynamic Energy Exploration & Production Portfolio, Dynamic Food & Beverage Portfolio, Dynamic Leisure and Entertainment Portfolio, Dynamic Media Portfolio and Dynamic Pharmaceuticals Portfolio.

Further, through August 31, 2017, the Adviser has contractually agreed to waive a portion of each Fund’s management fee in an amount equal to 100% of the net advisory fees an affiliate of the Adviser receives that are attributable to certain of the Fund’s investments in money market funds managed by that affiliate (excluding investments of cash collateral from securities lending). The Adviser cannot discontinue this waiver prior to its expiration. This agreement is not subject to recapture by the Adviser.

For the fiscal year ended April 30, 2015, the Adviser waived fees and/or paid Fund expenses for each Fund in the following amounts:

Dynamic Biotechnology & Genome Portfolio	$	341
Dynamic Building & Construction Portfolio		16,400
Dynamic Energy Exploration & Production Portfolio		147
Dynamic Food & Beverage Portfolio		269
Dynamic Leisure and Entertainment Portfolio		166
Dynamic Media Portfolio		198
Dynamic Networking Portfolio		61,653
Dynamic Oil & Gas Services Portfolio		11,218
Dynamic Pharmaceuticals Portfolio		1,313
Dynamic Retail Portfolio		65,504
Dynamic Semiconductors Portfolio		54,847
Dynamic Software Portfolio		41,127

The Expense Agreement provides that the fees waived or expenses borne by the Adviser are subject to recapture by the Adviser for up to three years from the date the fee was waived or expense was borne by the Adviser, but no recapture payment will be made by a Fund if it would result in the Fund exceeding its Expense Cap as specified above.

For the following Funds, the amounts available for potential future recapture by the Adviser under the Expense Agreement and the expiration schedule at April 30, 2015 are as follows:

	Total Potential Recapture Amounts		Potential Recapture Amounts Expiring
			04/30/16		04/30/17		04/30/18
Dynamic Building & Construction Portfolio	$	51,259	$	35,007	$	—	$	16,252
Dynamic Energy Exploration & Production Portfolio		31,709		31,709		—		—
Dynamic Leisure and Entertainment Portfolio		39,775		39,775		—		—
Dynamic Networking Portfolio		172,724		52,287		58,890		61,547
Dynamic Oil & Gas Services Portfolio		11,082		—		—		11,082
Dynamic Retail Portfolio		173,973		55,726		52,831		65,416
Dynamic Semiconductors Portfolio		197,203		73,270		69,191		54,742
Dynamic Software Portfolio		127,517		51,699		34,792		41,026

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 Funds are not charged any fees pursuant to the Distribution Agreement. The Distributor is an affiliate of the Adviser.

The Adviser has entered into a licensing agreement for each Fund with NYSE Arca, Inc. (the “Licensor”). Each Underlying Index name trademark is owned by the Licensor. These trademarks have been licensed to the Adviser for use by the Funds. Each Fund is entitled to

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use its Underlying Index pursuant to the Trust’s sub-licensing agreement with the Adviser. The Funds are required to pay the sub-licensing fees that are shown on the Statements of Operations. The Funds are not sponsored, endorsed, sold or promoted by the Licensor, and the Licensor makes no representation regarding the advisability of investing in any of the Funds.

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

Note 4. Investments in Affiliates

The 1940 Act defines “affiliated person” 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, 2015:

Dynamic Pharmaceuticals Portfolio

	Value April 30, 2014		Purchases at Cost		Proceeds from Sales			Change in Unrealized Appreciation (Depreciation)			Realized Gain (Loss)			Value April 30 , 2015		Dividend Income
BioDelivery Sciences International, Inc.	$	—	$	67,761,460	$	(1,494,438	)	$	(30,975,998	)	$	(461,999	)	$	34,829,025	$	—
Ligand Pharmaceuticals, Inc.		29,442,274		45,415,149		(3,223,775	)		19,616,410			103,029			91,353,087		—
Omeros Corp.		—		77,802,826		(569,939	)		(14,767,515	)		2,721			62,468,093		—
Total Investments in Affiliates	$	29,442,274	$	190,979,435	$	(5,288,152	)	$	(26,127,103	)	$	(356,249	)	$	188,650,205	$	—

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 a 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, 2015, all of the securities in each Fund were valued based on Level 1 inputs (see the Schedules of Investments for security categories). 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.

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, 2015 and 2014:

	2015						2014
	Ordinary Income		Long-Term Capital Gains		Return of Capital		Ordinary Income
Dynamic Biotechnology & Genome Portfolio	$	2,402,943	$	—	$	—	$	—
Dynamic Building & Construction Portfolio		69,918		—		—		—
Dynamic Energy Exploration & Production Portfolio		1,923,020		—		—		1,698,221
Dynamic Food & Beverage Portfolio		4,913,796		—		—		1,980,743
Dynamic Leisure and Entertainment Portfolio		1,429,697		—		—		649,713
Dynamic Media Portfolio		1,051,471		—		—		902,729
Dynamic Networking Portfolio		—		—		—		230,610
Dynamic Oil & Gas Services Portfolio		1,024,494		—		—		414,523

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	2015						2014
	Ordinary Income		Long-Term Capital Gains		Return of Capital		Ordinary Income
Dynamic Pharmaceuticals Portfolio	$	35,713,718	$	7,688,708	$	—	$	3,255,531
Dynamic Retail Portfolio		205,959		—		—		250,815
Dynamic Semiconductors Portfolio		415,087		—		146,696		107,690
Dynamic Software Portfolio		49,038		—		—		—

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)— Investment Securities			Capital Loss Carryforward			Late-Year Ordinary/ Post-October Deferrals*			Shares of Beneficial Interest		Total Net Assets
Dynamic Biotechnology & Genome Portfolio**	$	743,966	$	—	$	(22,631	)	$	55,607,621		$	(134,718,760	)	$	(5,289,451	)	$	594,941,381	$	511,262,126
Dynamic Building & Construction Portfolio**		43,189		—		(14,216	)		3,682,224			(16,787,302	)		(4,930,607	)		73,184,125		55,177,413
Dynamic Energy Exploration & Production Portfolio**		619,624		—		(16,307	)		1,977,189			(51,065,748	)		(15,931,031	)		182,008,994		117,592,721
Dynamic Food & Beverage Portfolio**		663,070		—		(19,182	)		13,803,579			(49,905,180	)		(1,806,286	)		302,984,597		265,720,598
Dynamic Leisure and Entertainment Portfolio**		—		—		(14,515	)		6,093,795			(17,761,611	)		(5,601,456	)		210,224,238		192,940,451
Dynamic Media Portfolio**		381,824		—		(16,655	)		8,507,873			(54,117,961	)		(5,649,225	)		196,562,376		145,668,232
Dynamic Networking Portfolio**		—		—		(13,446	)		4,616,430			(34,444,150	)		(403,420	)		57,729,343		27,484,757
Dynamic Oil & Gas Services Portfolio**		174,078		—		(21,932	)		(7,610,072	)		(186,657,621	)		(15,106,748	)		282,007,985		72,785,690
Dynamic Pharmaceuticals Portfolio		42,106,456		37,675,517		(29,404	)		277,026,107			—			—			1,570,155,011		1,926,933,687
Dynamic Retail Portfolio**		45,750		—		(12,686	)		676,113			(19,477,733	)		(555,047	)		57,733,987		38,410,384
Dynamic Semiconductors Portfolio		—		—		(13,243	)		2,197,349			(44,964,940	)		—			121,691,445		78,910,611
Dynamic Software Portfolio**		83,127		—		(13,871	)		6,092,619			(23,094,420	)		(683,044	)		74,944,980		57,329,391

* Includes net capital losses incurred after October 31 (“Post-October Capital Losses”) and the combination of ordinary losses incurred after December 31 within the taxable year and specified losses incurred after October 31 within the taxable year (“Late-Year Ordinary Losses”), that are deemed to arise on the first business day of each Fund’s next taxable year.

** The Dynamic Biotechnology & Genome Portfolio, Dynamic Building & Construction Portfolio, Dynamic Energy Exploration & Production Portfolio, Dynamic Food & Beverage Portfolio, Dynamic Leisure and Entertainment, Dynamic Media Portfolio, Dynamic Networking Portfolio, Dynamic Oil & Gas Services Portfolio, Dynamic Retail Portfolio and Dynamic Software Portfolio incurred and will elect to defer Late-Year Ordinary Losses of $0, $15,076, $0, $0, $0, $0, $0, $0, $0 and $0 and Post-October Capital Losses of $5,289,451, $4,915,531, $15,931,031, $1,806,286, $5,601,456, $5,649,225, $403,420, $15,106,748, $555,047 and $683,044, respectively.

Capital loss carryforwards are calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforwards actually available for the Funds to utilize. Capital losses generated in years beginning after December 22, 2010 can be carried forward for an unlimited period, whereas previous losses expire in eight tax years. Capital losses with an expiration period may not be used to offset capital gains until all net capital losses without an expiration date have been utilized. Capital loss carryforwards with no expiration date will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The ability to utilize capital loss carryforwards in the future may be limited under Internal Revenue Code and related regulations based on the results of future transactions.

71

The following table presents available capital loss carryforwards and expiration dates for each Fund as of April 30, 2015:

									Post-effective/no expiration
	2016		2017		2018		2019		Short-Term		Long-Term		Total*		Expired
Dynamic Biotechnology & Genome Portfolio	$	15,818,255	$	34,286,844	$	50,397,332	$	12,898,182	$	21,318,147	$	—	$	134,718,760	$	19,612,223
Dynamic Building & Construction Portfolio		742,893		2,843,349		3,001,058		6,653,613		2,766,977		779,412		16,787,302		2,263,182
Dynamic Energy Exploration & Production Portfolio		3,232,521		7,646,917		21,471,013		1,361,799		14,797,874		2,555,624		51,065,748		285,311
Dynamic Food & Beverage Portfolio		1,260,041		7,585,250		10,245,302		—		30,394,757		419,830		49,905,180		239,185
Dynamic Leisure and Entertainment Portfolio		2,111,801		2,895,936		2,889,449		2,356,106		7,508,319		—		17,761,611		1,611,839
Dynamic Media Portfolio		2,505,039		4,930,761		5,161,647		6,294,489		34,672,231		553,794		54,117,961		3,187,134
Dynamic Networking Portfolio		1,064,275		1,975,581		512,618		730,670		20,410,717		9,750,289		34,444,150		1,939,441
Dynamic Oil & Gas Services Portfolio		7,909,602		24,680,663		85,028,926		35,877,910		21,619,098		11,541,422		186,657,621		15,026,862
Dynamic Pharmaceuticals Portfolio		—		—		—		—		—		—		—		—
Dynamic Retail Portfolio		1,908,967		2,427,604		1,816,180		2,176,015		11,068,330		80,637		19,477,733		937,070
Dynamic Semiconductors Portfolio		10,196,415		14,001,359		10,902,954		2,120,823		6,727,250		1,016,139		44,964,940		9,158,832
Dynamic Software Portfolio		1,542,190		7,095,351		2,938,722		3,242,208		8,275,949		—		23,094,420		3,017,278

* Capital loss carryforwards as of the date listed above are reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization.

Note 7. Investment Transactions

For the fiscal year ended April 30, 2015, the cost of securities purchased and proceeds from sales of securities (other than short-term securities, U.S. Treasury obligations, money market funds and in-kind transactions, if any) were as follows:

	Purchases		Sales
Dynamic Biotechnology & Genome Portfolio	$	413,464,819	$	411,744,789
Dynamic Building & Construction Portfolio		82,732,085		82,632,151
Dynamic Energy Exploration & Production Portfolio		169,610,346		169,117,644
Dynamic Food & Beverage Portfolio		376,969,936		378,438,194
Dynamic Leisure and Entertainment Portfolio		306,193,279		305,192,835
Dynamic Media Portfolio		207,206,301		205,645,044
Dynamic Networking Portfolio		21,090,575		20,744,410
Dynamic Oil & Gas Services Portfolio		75,490,285		74,150,410
Dynamic Pharmaceuticals Portfolio		685,100,032		726,167,893
Dynamic Retail Portfolio		27,563,427		27,421,283
Dynamic Semiconductors Portfolio		39,197,056		40,305,553
Dynamic Software Portfolio		68,837,896		68,378,577

For the fiscal year ended April 30, 2015, in-kind transactions associated with creations and redemptions were as follows:

	Cost of Securities Received		Value of Securities Delivered
Dynamic Biotechnology & Genome Portfolio	$	250,712,419	$	217,353,342
Dynamic Building & Construction Portfolio		59,525,198		125,837,107
Dynamic Energy Exploration & Production Portfolio		130,838,163		119,953,847
Dynamic Food & Beverage Portfolio		307,639,841		519,011,970
Dynamic Leisure and Entertainment Portfolio		180,648,025		181,940,696
Dynamic Media Portfolio		164,724,318		210,584,518
Dynamic Networking Portfolio		17,336,810		24,194,766
Dynamic Oil & Gas Services Portfolio		44,728,534		70,315,327
Dynamic Pharmaceuticals Portfolio		895,612,498		412,160,004
Dynamic Retail Portfolio		38,424,378		26,657,452
Dynamic Semiconductors Portfolio		89,686,180		35,749,827
Dynamic Software Portfolio		47,872,577		56,446,182

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

At April 30, 2015, the aggregate cost and the net unrealized appreciation (depreciation) of investments for tax purposes were as follows:

	Gross Unrealized Appreciation		Gross Unrealized (Depreciation)			Net Unrealized Appreciation (Depreciation)			Cost
Dynamic Biotechnology & Genome Portfolio	$	89,405,409	$	(33,797,788	)	$	55,607,621		$	537,698,072
Dynamic Building & Construction Portfolio		5,266,977		(1,584,753	)		3,682,224			51,595,447
Dynamic Energy Exploration & Production Portfolio		9,089,264		(7,112,075	)		1,977,189			115,744,697
Dynamic Food & Beverage Portfolio		21,640,579		(7,837,000	)		13,803,579			251,903,703
Dynamic Leisure and Entertainment Portfolio		13,587,834		(7,494,039	)		6,093,795			186,999,666
Dynamic Media Portfolio		10,155,372		(1,647,499	)		8,507,873			137,310,282
Dynamic Networking Portfolio		5,475,967		(859,537	)		4,616,430			22,947,936
Dynamic Oil & Gas Services Portfolio		2,857,623		(10,467,695	)		(7,610,072	)		80,495,022
Dynamic Pharmaceuticals Portfolio		331,864,840		(54,838,733	)		277,026,107			1,693,538,884
Dynamic Retail Portfolio		1,743,525		(1,067,412	)		676,113			37,793,553
Dynamic Semiconductors Portfolio		4,017,120		(1,819,771	)		2,197,349			76,798,272
Dynamic Software Portfolio		6,994,894		(902,275	)		6,092,619			51,334,197

Note 8. Reclassification of Permanent Differences

Primarily as a result of differing book/tax treatment of in-kind transactions and expired capital loss carryforwards on April 30, 2015, 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, 2015, the reclassifications were as follows:

	Undistributed Net Investment Income (Loss)			Undistributed Net Realized Gain (Loss)			Shares of Beneficial Interest
Dynamic Biotechnology & Genome Portfolio	$	—		$	(55,431,124	)	$	55,431,124
Dynamic Building & Construction Portfolio		—			(4,067,727	)		4,067,727
Dynamic Energy Exploration & Production Portfolio		524,940			(7,823,164	)		7,298,224
Dynamic Food & Beverage Portfolio		—			(59,122,956	)		59,122,956
Dynamic Leisure and Entertainment Portfolio		(100,293	)		(20,333,512	)		20,433,805
Dynamic Media Portfolio		(847	)		(15,360,844	)		15,361,691
Dynamic Networking Portfolio		15,328			(3,043,682	)		3,028,354
Dynamic Oil & Gas Services Portfolio		77,024			10,984,176			(11,061,200	)
Dynamic Pharmaceuticals Portfolio		—			(177,479,608	)		177,479,608
Dynamic Retail Portfolio		—			(1,763,134	)		1,763,134
Dynamic Semiconductors Portfolio		—			3,469,959			(3,469,959	)
Dynamic Software Portfolio		—			(5,181,605	)		5,181,605

Note 9. Trustees’ and Officer’s Fees

Trustees’ and Officer’s Fees include amounts accrued by the Funds to pay remuneration to the Independent Trustees and an Officer of the Trust. The Trustee who is an “interested person” of the Trust does 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. Obligations under the Plan represent unsecured claims against the general assets of the Funds.

Note 10. Capital

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

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To the extent that the Funds permit transactions in exchange for Deposit Securities, each Fund may issue Shares in advance of receipt of Deposit Securities subject to various conditions, including a requirement to maintain on deposit with the Trust cash at least equal to 105% of the market value of the missing Deposit Securities. In accordance with the Trust’s Participant Agreement, Creation Units will be issued to an Authorized Participant, notwithstanding the fact that the corresponding Deposit Securities have not been received in part or in whole, in reliance on the undertaking of the Authorized Participant to deliver the missing Deposit Securities as soon as possible, which undertaking shall be secured by the Authorized Participant’s delivery and maintenance of collateral consisting of cash in the form of U.S. dollars in immediately available funds having a value (marked-to-market daily) at least equal to 105%, which the Adviser may change from time to time, of the value of the missing Deposit Securities.

Transactions in each Fund’s Shares are disclosed in detail in the Statements of Changes in Net Assets.

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.

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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 PowerShares Dynamic Biotechnology & Genome Portfolio, PowerShares Dynamic Building & Construction Portfolio, PowerShares Dynamic Energy Exploration & Production Portfolio, PowerShares Dynamic Food & Beverage Portfolio, PowerShares Dynamic Leisure and Entertainment Portfolio, PowerShares Dynamic Media Portfolio, PowerShares Dynamic Networking Portfolio, PowerShares Dynamic Oil & Gas Services Portfolio, PowerShares Dynamic Pharmaceuticals Portfolio, PowerShares Dynamic Retail Portfolio, PowerShares Dynamic Semiconductors Portfolio and PowerShares Dynamic Software Portfolio (each an individual portfolio of PowerShares Exchange-Traded Fund Trust, hereafter referred to as the “Funds”) at April 30, 2015, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, 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 Funds’ 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, 2015 by correspondence with the custodian and brokers, and the application of alternative auditing procedures where confirmations of security purchases have not been received, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

Chicago, IL

June 24, 2015

75

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, 2015.

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, 2014		Ending Account Value April 30, 2015		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During the Six-Month  Period(1)
PowerShares Dynamic Biotechnology & Genome Portfolio (PBE)
Actual	$	1,000.00	$	1,062.99		0.57	%	$	2.92
Hypothetical (5% return before expenses)		1,000.00		1,021.97		0.57			2.86
PowerShares Dynamic Building & Construction Portfolio (PKB)
Actual		1,000.00		1,064.69		0.63			3.23
Hypothetical (5% return before expenses)		1,000.00		1,021.67		0.63			3.16
PowerShares Dynamic Energy Exploration & Production Portfolio (PXE)
Actual		1,000.00		1,010.99		0.66			3.29
Hypothetical (5% return before expenses)		1,000.00		1,021.52		0.66			3.31
PowerShares Dynamic Food & Beverage Portfolio (PBJ)
Actual		1,000.00		1,066.44		0.58			2.97
Hypothetical (5% return before expenses)		1,000.00		1,021.92		0.58			2.91
PowerShares Dynamic Leisure and Entertainment Portfolio (PEJ)
Actual		1,000.00		1,068.59		0.63			3.23
Hypothetical (5% return before expenses)		1,000.00		1,021.67		0.63			3.16
PowerShares Dynamic Media Portfolio (PBS)
Actual		1,000.00		1,074.87		0.57			2.93
Hypothetical (5% return before expenses)		1,000.00		1,021.97		0.57			2.86
PowerShares Dynamic Networking Portfolio (PXQ)
Actual		1,000.00		1,099.61		0.63			3.28
Hypothetical (5% return before expenses)		1,000.00		1,021.67		0.63			3.16

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Fees and Expenses (continued)

	Beginning Account Value November 1, 2014		Ending Account Value April 30, 2015		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During the Six-Month  Period(1)
PowerShares Dynamic Oil & Gas Services Portfolio (PXJ)
Actual	$	1,000.00	$	853.50		0.63	%	$	2.90
Hypothetical (5% return before expenses)		1,000.00		1,021.67		0.63			3.16
PowerShares Dynamic Pharmaceuticals Portfolio (PJP)
Actual		1,000.00		1,111.02		0.56			2.93
Hypothetical (5% return before expenses)		1,000.00		1,022.02		0.56			2.81
PowerShares Dynamic Retail Portfolio (PMR)
Actual		1,000.00		1,111.62		0.63			3.30
Hypothetical (5% return before expenses)		1,000.00		1,021.67		0.63			3.16
PowerShares Dynamic Semiconductors Portfolio (PSI)
Actual		1,000.00		1,156.54		0.63			3.37
Hypothetical (5% return before expenses)		1,000.00		1,021.67		0.63			3.16
PowerShares Dynamic Software Portfolio (PSJ)
Actual		1,000.00		1,134.84		0.63			3.33
Hypothetical (5% return before expenses)		1,000.00		1,021.67		0.63			3.16

⁽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, 2015. Expenses are calculated by multiplying the Fund’s annualized expense ratio by the average account value of the period, then multiplying the results by 181/365. Expense ratios for the most recent six-month period may differ from expense ratios based on the annualized data in the Financial Highlights.

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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 advisers.

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, 2015:

Federal Income Tax Information

	Qualified Dividend Income*			Dividends-Received Deduction*
Dynamic Biotechnology & Genome Portfolio		90	%		90	%
Dynamic Building & Construction Portfolio		100	%		100	%
Dynamic Energy Exploration & Production Portfolio		100	%		100	%
Dynamic Food & Beverage Portfolio		100	%		100	%
Dynamic Leisure and Entertainment Portfolio		100	%		100	%
Dynamic Media Portfolio		100	%		100	%
Dynamic Networking Portfolio		0	%		0	%
Dynamic Oil & Gas Services Portfolio		100	%		78	%
Dynamic Pharmaceuticals Portfolio		36	%		36	%
Dynamic Retail Portfolio		100	%		100	%
Dynamic Semiconductors Portfolio		100	%		100	%
Dynamic Software Portfolio		100	%		100	%

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

Dynamic Pharmaceuticals Portfolio designates $7,688,708 as a long-term capital gain distribution for the year ended April 30, 2015.

78

Trustees and Officers

The Independent Trustees 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, 2015.

Name, Address and Year of Birth 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 During the Past 5 Years
Ronn R. Bagge—1958 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	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).	120	None
Todd J. Barre—1957 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	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.	120	None
Marc M. Kole—1960 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Trustee	Since 2006	Retired. Formerly, Chief Financial Officer, Hope Network (social services) (2008-2012); Assistant Vice President and Controller, Priority Health (health insurance) (2005-2008); Senior Vice President of Finance, United Healthcare (2004-2005); Chief Accounting Officer, Senior Vice President of Finance, Oxford Health Plans (2000-2004); Audit Partner, Arthur Andersen LLP (1996-2000).	120	None
Yung Bong Lim—1964 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Trustee	Since 2013	Managing Partner, Residential Dynamics Group LLC (2008-Present); formerly, Managing Director, Citadel Investment Group, L.L.C. (1999-2007).	120	None
Philip M. Nussbaum—1961 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Trustee	Since 2003	Chairman, Performance Trust Capital Partners (2004-Present).	120	None

* This is the date the Independent 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, 2015, the “Fund Family” consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 67 portfolios advised by the Adviser.

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Trustees and Officers (continued)

Name, Address and Year of Birth 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 During the Past 5 Years
Gary R. Wicker—1961 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Trustee	Since 2013	Senior Vice President of Global Finance and Chief Financial Officer at RBC Ministries (publishing company) (2013-Present); formerly, Executive Vice President and Chief Financial Officer, Zondervan Publishing (A division of Harper Collins/NewsCorp) (2007-2012); Senior Vice President and Group Controller (2005-2006), Senior Vice President and Chief Financial Officer (2003-2004), Chief Financial Officer (2001-2003), Vice President, Finance and Controller (1999-2001) and Assistant Controller (1997-1999), divisions of The Thomson Corporation (information services provider).	120	None
Donald H. Wilson—1959 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Chairman of the Board and Trustee	Chairman since 2012; Trustee since 2006	Chairman, President and Chief Executive Officer, Community Financial Shares, Inc. and Community Bank—Wheaton/Glen Ellyn (subsidiary) (2013-Present); Chairman and Chief Executive Officer, Stone Pillar Advisors, 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).	120	None

* This is the date the Independent 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, 2015, the “Fund Family” consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 67 portfolios advised by the Adviser.

80

Trustees and Officers (continued)

The Trustee who is an “interested person” (the “Non-Independent Trustee”) 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 the Non-Independent Trustee and the other directorships, if any, held by the Non-Independent Trustee are shown below.

Name, Address and Year of Birth of Non-Independent Trustee	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 Non-Independent Trustees	Other Directorships Held by Non-Independent Trustees During the Past 5 Years
Kevin M. Carome—1956 Invesco Ltd. Two Peachtree Pointe, 1555 Peachtree St., N.E., Suite 1800 Atlanta, GA 30309	Trustee	Since 2010	Senior Managing Director, Secretary and General Counsel, Invesco Ltd. (2006-Present); Director, Invesco Advisers, Inc. (2009-Present); Director, Invesco Finance PLC, INVESCO Funds Group, Inc., and Invesco Holding Company Limited; Director and Executive Vice President, Invesco Finance, Inc., Invesco Group Services, Inc., Invesco Investments (Bermuda) Ltd., Invesco North American Holdings, Inc., and IVZ, Inc. and Invesco Asset Management (Bermuda) Ltd.; Manager, Horizon Flight Works LLC; Director and Secretary, IVZ Bahamas Private Limited; formerly, Senior Vice President, Secretary and General Counsel, Invesco Advisers, 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.	120	None

* This is the date the Non-Independent 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, 2015, the Fund Complex consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 67 portfolios advised by the Adviser.

81

Trustees and Officers (continued)

Name, Address and Year of Birth of Executive Officers	Position(s) Held with Trust	Length of Time Served*	Principal Occupation(s) During Past 5 Years
Andrew Schlossberg—1974 Invesco Management Group, Inc. 11 Greenway Plaza, Suite 1000 Houston, TX 77046	President	Since 2009	President, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2009-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); Managing Director—U.S. Strategy and Marketing (2010-Present) and Principal Executive Officer (2015-Present), Invesco PowerShares Capital Management LLC; Managing Director, U.S. head of business strategy and chief marketing officer for Invesco Ltd. in the United States (2008-Present); and Senior Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser) (2009-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) and Director, Invesco Distributors, Inc. (2012-2015).
Peter Hubbard—1981 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Vice President	Since 2009	Vice President, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2009-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); 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).
David Warren—1957 Invesco Canada Ltd. 5140 Yonge Street Suite 800, Toronto, Ontario M2N 6X7	Vice President	Since 2009	Vice President, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2009-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); Managing Director—Chief Administrative Officer, Americas, Invesco PowerShares Capital Management LLC; Senior Vice President, Invesco Advisers, Inc. (2009-Present); Director, Executive Vice President and Chief Financial Officer, Invesco Inc. (2009-Present); Senior Vice President, Invesco Management Group, Inc. (2007-Present); Director, Executive Vice President and Chief Financial Officer, Invesco Canada Ltd. (formerly, Invesco Trimark Ltd.) and Chief Administrative Officer, North American Retail, Invesco Ltd. (2007-Present); Director, Invesco Canada Holdings Inc. (2002-Present), Invesco Corporate Class Inc., and Invesco Canada Fund Inc.; Director, Invesco Financial Services Ltd. and Trimark Investments Ltd. (2014-Present); formerly, Director, Executive Vice President and Chief Financial Officer, Invesco Canada Ltd. (formerly, Invesco Trimark Ltd.) (2000-2006).
Sheri Morris—1964 Invesco Management Group, Inc. 11 Greenway Plaza, Suite 1000 Houston, TX 77046	Vice President	Since 2012	Vice President, Treasurer and Principal Financial Officer, The Invesco Funds; Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser) (2009-Present) and Vice President, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2012-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); formerly, Treasurer, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust and PowerShares Actively Managed Exchange-Traded Fund Trust (2011-2013); Vice President, Invesco Aim Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc.; Assistant Vice President and Assistant Treasurer, The Invesco Funds and Assistant Vice President, Invesco Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc.

* This is the date the Officers began serving the Trust. Each Officer serves an indefinite term, until his or her successor is elected.

82

Trustees and Officers (continued)

Name, Address and Year of Birth of Executive Officers	Position(s) Held with Trust	Length of Time Served*	Principal Occupation(s) During Past 5 Years
Rudolf E. Reitmann—1971 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Vice President	Since 2013	Vice President, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2013-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); Head of Global Exchange Traded Funds Operations, Invesco PowerShares Capital Management LLC (2013-Present).
Daniel E. Draper—1968 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Vice President	Since 2013	Senior Vice President, Invesco Distributors, Inc. (2014-Present); Vice President, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2013-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); Managing Director, Invesco PowerShares Capital Management LLC (2013-Present); formerly, Managing Director, Credit Suisse Asset Management (2010-2013) and Lyxor Asset Management/Societe Generale (2007-2010).
Steven M. Hill—1964 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Vice President and Treasurer	Since 2013	Vice President and Treasurer of PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2013-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); Head of Global ETF Administration, Invesco PowerShares Capital Management LLC (2011-Present); Principal Financial and Accounting Officer—Investment Pools, Invesco PowerShares Capital Management LLC (2015-Present); formerly, Senior Managing Director and Chief Financial Officer, Destra Capital Management LLC and its subsidiaries (2010-2011); Chief Financial Officer, Destra Investment Trust and Destra Investment Trust II (2010-2011); Senior Managing Director, Claymore Securities, Inc. (2003-2010); and Chief Financial Officer, Claymore sponsored mutual funds (2003-2010).
Christopher Joe—1969 Invesco Management Group, Inc. 11 Greenway Plaza, Suite 1000 Houston, TX 77046	Chief Compliance Officer	Since 2012	Deputy Chief Compliance Officer of Invesco Advisers, Inc. (2014-Present); Chief Compliance Officer of PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2012-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); U.S. Compliance Director, Invesco, Ltd. (2006-Present); formerly, Chief Compliance Officer, Invesco Investment Advisers, LLC (registered investment adviser) (2010-2013).
Anna Paglia—1974 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Secretary	Since 2011	Secretary, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2011-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); Head of Legal, Invesco PowerShares Capital Management LLC (2010-Present); formerly, Partner, K&L Gates LLP (formerly, Bell Boyd & Lloyd LLP) (2007-2010); Associate Counsel at Barclays Global Investors Ltd. (2004-2006).

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 Officers began serving the Trust. Each Officer serves an indefinite term, until his or her successor is elected.

83

Board Considerations Regarding Continuation of Investment

Advisory Agreement

At a meeting held on April 16, 2015, the Board of Trustees of the PowerShares Exchange-Traded Fund Trust (the “Trust”), including the Independent Trustees, approved the continuation of the Investment Advisory Agreement between Invesco PowerShares Capital Management LLC (the “Adviser”) and the Trust for the following 51 series (each, a “Fund” and collectively, the “Funds”):

PowerShares Aerospace & Defense Portfolio

PowerShares BuyBack Achievers™ Portfolio

PowerShares Cleantech™ Portfolio

PowerShares Dividend Achievers^TM Portfolio

PowerShares DWA Momentum Portfolio

PowerShares DWA Basic Materials Momentum Portfolio

PowerShares DWA Consumer Cyclicals Momentum Portfolio

PowerShares DWA Consumer Staples Momentum Portfolio

PowerShares DWA Energy Momentum Portfolio

PowerShares DWA Financial Momentum Portfolio

PowerShares DWA Healthcare Momentum Portfolio

PowerShares DWA Industrials Momentum Portfolio

PowerShares DWA NASDAQ Momentum Portfolio

PowerShares DWA Technology Momentum Portfolio

PowerShares DWA Utilities Momentum Portfolio

PowerShares Dynamic Biotechnology & Genome Portfolio

PowerShares Dynamic Building & Construction Portfolio

PowerShares Dynamic Energy Exploration & Production Portfolio

PowerShares Dynamic Food & Beverage Portfolio

PowerShares Dynamic Large Cap Growth Portfolio

PowerShares Dynamic Large Cap Value Portfolio

PowerShares Dynamic Leisure and Entertainment Portfolio

PowerShares Dynamic Market Portfolio

PowerShares Dynamic Media Portfolio

PowerShares Dynamic Networking Portfolio

PowerShares Dynamic Oil & Gas Services Portfolio

PowerShares Dynamic Pharmaceuticals Portfolio

PowerShares Dynamic Retail Portfolio

PowerShares Dynamic Semiconductors Portfolio

PowerShares Dynamic Software Portfolio

PowerShares Financial Preferred Portfolio

PowerShares FTSE RAFI US 1000 Portfolio

PowerShares FTSE RAFI US 1500 Small-Mid Portfolio

PowerShares Fundamental Pure Large Core Portfolio

PowerShares Fundamental Pure Large Growth Portfolio

PowerShares Fundamental Pure Large Value Portfolio

PowerShares Fundamental Pure Mid Core Portfolio

PowerShares Fundamental Pure Mid Growth Portfolio

PowerShares Fundamental Pure Mid Value Portfolio

PowerShares Fundamental Pure Small Core Portfolio

PowerShares Fundamental Pure Small Growth Portfolio

PowerShares Fundamental Pure Small Value Portfolio

PowerShares Global Listed Private Equity Portfolio

PowerShares Golden Dragon China Portfolio

PowerShares High Yield Equity Dividend Achievers ^TM Portfolio

PowerShares International Dividend Achievers^TM Portfolio

PowerShares S&P 500^® High Quality Portfolio

PowerShares Water Resources Portfolio

PowerShares WilderHill Clean Energy Portfolio

PowerShares WilderHill Progressive Energy Portfolio

PowerShares Zacks Micro Cap Portfolio

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 a Fund grows, (v) whether fee levels reflect any possible economies of scale for the benefit of Fund shareholders, (vi) comparisons of services rendered to and amounts paid by 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 staffing, including operational support 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 and/or oversight of execution of portfolio transactions on behalf of the Funds. The Trustees also reviewed information on the performance of the Funds and their underlying indexes for the one-year, three-year, five-year, ten-year and since-inception periods ended December 31, 2014, as applicable, including reports for each of those periods on the correlation and tracking error between each Fund’s performance and the performance of its underlying index, as well as the Adviser’s analysis of the tracking error between PowerShares Global Listed Private Equity Portfolio and its underlying index. In reviewing the tracking error report, the Trustees considered information provided by Ibbotson Associates, a consultant to the Independent Trustees, with respect to general

84

Board Considerations Regarding Continuation of Investment Advisory

Agreement (continued)

expected tracking error ranges and various explanations for any tracking error. The Trustees noted that for each applicable period 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, effort and resources 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 advisory fee and net expense ratio, as compared to information compiled by the Adviser from Lipper Inc. databases on the advisory fees and net expense ratios of comparable exchange-traded funds (“ETFs”), open-end (non-ETF) index funds and open-end (non-ETF) actively-managed funds. The Trustees noted that the annual advisory fee charged to each Fund is:

— 0.50% of the Fund’s average daily net assets for each Fund other than PowerShares Dividend Achievers™ Portfolio, PowerShares High Yield Equity Dividend Achievers™ Portfolio, PowerShares International Dividend Achievers™ Portfolio, PowerShares FTSE RAFI US 1000 Portfolio, PowerShares FTSE RAFI US 1500 Small-Mid Portfolio, PowerShares Fundamental Pure Large Core Portfolio, PowerShares Fundamental Pure Large Growth Portfolio, PowerShares Fundamental Pure Large Value Portfolio, PowerShares Fundamental Pure Mid Core Portfolio, PowerShares Fundamental Pure Mid Growth Portfolio, PowerShares Fundamental Pure Mid Value Portfolio, PowerShares Fundamental Pure Small Core Portfolio, PowerShares Fundamental Pure Small Growth Portfolio, PowerShares Fundamental Pure Small Value Portfolio and PowerShares S&P 500^® High Quality Portfolio;

— 0.40% of the Fund’s average daily net assets for each of PowerShares Dividend Achievers™ Portfolio, PowerShares High Yield Equity Dividend Achievers™ Portfolio and PowerShares International Dividend Achievers™ Portfolio; and

— 0.29% of the Fund’s average daily net assets for each of PowerShares FTSE RAFI US 1000 Portfolio, PowerShares FTSE RAFI US 1500 Small-Mid Portfolio, PowerShares Fundamental Pure Large Core Portfolio¹, PowerShares Fundamental Pure Large Growth Portfolio, PowerShares Fundamental Pure Large Value Portfolio, PowerShares Fundamental Pure Mid Core Portfolio¹, PowerShares Fundamental Pure Mid Growth Portfolio, PowerShares Fundamental Pure Mid Value Portfolio, PowerShares Fundamental Pure Small Core Portfolio¹, PowerShares Fundamental Pure Small Growth Portfolio, PowerShares Fundamental Pure Small Value Portfolio and PowerShares S&P 500^® High Quality Portfolio.

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, 2016, as set forth below:

— 0.60%, excluding interest expenses, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses, for each of PowerShares DWA NASDAQ Momentum Portfolio and PowerShares Dynamic Market Portfolio;

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

— 0.39%, excluding interest expenses, offering costs, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses, for each of PowerShares FTSE RAFI US 1000 Portfolio, PowerShares FTSE RAFI US 1500 Small-Mid Portfolio, PowerShares Fundamental Pure Large Core Portfolio², PowerShares Fundamental Pure Large Growth Portfolio, PowerShares Fundamental Pure Large Value Portfolio, PowerShares Fundamental Pure Mid Core Portfolio², PowerShares Fundamental Pure Mid Growth Portfolio, PowerShares Fundamental Pure Mid Value Portfolio, PowerShares Fundamental Pure Small Core Portfolio², PowerShares Fundamental Pure Small Growth Portfolio and PowerShares Fundamental Pure Small Value Portfolio;

¹  The annual management fee for PowerShares Fundamental Pure Large Core Portfolio, PowerShares Fundamental Pure Mid Core Portfolio and PowerShares Fundamental Pure Small Core Portfolio will be reduced to 0.25% of each Fund’s average daily net assets, effective May 22, 2015.

²  The Expense Cap for PowerShares Fundamental Pure Large Core Portfolio, PowerShares Fundamental Pure Mid Core Portfolio and PowerShares Fundamental Pure Small Core Portfolio will be reduced such that annual operating expenses of each Fund will not exceed 0.25% of its average daily net assets, effective May 22, 2015.

85

Board Considerations Regarding Continuation of Investment Advisory

Agreement (continued)

— 0.29%, excluding interest expenses, offering costs, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses, for PowerShares S&P 500^® High Quality Portfolio;

— 0.60%, excluding interest expenses, offering costs, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses, for PowerShares DWA Basic Materials Momentum Portfolio, PowerShares DWA Consumer Cyclicals Momentum Portfolio, PowerShares DWA Consumer Staples Momentum Portfolio, PowerShares DWA Energy Momentum Portfolio, PowerShares DWA Financial Momentum Portfolio, PowerShares DWA Healthcare Momentum Portfolio, PowerShares DWA Industrials Momentum Portfolio, PowerShares DWA Technology Momentum Portfolio and PowerShares DWA Utilities Momentum Portfolio; and

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

The Trustees noted that the Adviser represented that it does not serve as the investment adviser to any clients, other than other ETFs also overseen by the Trustees, with comparable investment strategies as the Funds, but that the Adviser provides sub-advisory services to clients with comparable investment strategies as certain of the Funds. The Trustees further noted the Adviser’s explanation with respect to the sub-advisory fees it receives for such services in comparison to the advisory fees charged to the Funds. The Trustees noted that the advisory fees for certain Funds were equal to or lower than the median advisory fees of their ETF and open-end index peer funds as illustrated in the table below. The Trustees also noted that the advisory fees for all of the Funds were lower than the median advisory fees of their open-end actively-managed peer funds.

PowerShares Fund	Equal to/Lower than ETF Median	Equal to/Lower than Open-End Index Fund Median3	Equal to/Lower than Open-End Active Fund Median
PowerShares Aerospace & Defense Portfolio		N/A	X
PowerShares Buyback Achievers Portfolio			X
PowerShares Cleantech Portfolio		N/A	X
PowerShares Dividend Achievers Portfolio		X	X
PowerShares DWA Basic Materials Momentum Portfolio		N/A	X
PowerShares DWA Consumer Cyclicals Momentum Portfolio		N/A	X
PowerShares DWA Consumer Staples Momentum Portfolio	X	N/A	X
PowerShares DWA Energy Momentum Portfolio		N/A	X
PowerShares DWA Financial Momentum Portfolio		N/A	X
PowerShares DWA Healthcare Momentum Portfolio		N/A	X
PowerShares DWA Industrials Momentum Portfolio		N/A	X
PowerShares DWA Momentum Portfolio		X	X
PowerShares DWA NASDAQ Momentum Portfolio		X	X
PowerShares DWA Technology Momentum Portfolio			X
PowerShares DWA Utilities Momentum Portfolio			X
PowerShares Dynamic Biotechnology & Genome Portfolio		N/A	X
PowerShares Dynamic Building & Construction Portfolio		N/A	X
PowerShares Dynamic Energy Exploration & Production Portfolio		N/A	X
PowerShares Dynamic Food & Beverage Portfolio	X	N/A	X
PowerShares Dynamic Large Cap Growth Portfolio			X
PowerShares Dynamic Large Cap Value Portfolio			X
PowerShares Dynamic Leisure and Entertainment Portfolio		N/A	X
PowerShares Dynamic Market Portfolio			X
PowerShares Dynamic Media Portfolio		N/A	X
PowerShares Dynamic Networking Portfolio			X
PowerShares Dynamic Oil & Gas Services Portfolio		N/A	X

86

Board Considerations Regarding Continuation of Investment Advisory

Agreement (continued)

PowerShares Fund	Equal to/Lower than ETF Median	Equal to/Lower than Open-End Index Fund Median3	Equal to/Lower than Open-End Active Fund Median
PowerShares Dynamic Pharmaceuticals Portfolio		N/A	X
PowerShares Dynamic Retail Portfolio		N/A	X
PowerShares Dynamic Semiconductors Portfolio			X
PowerShares Dynamic Software Portfolio			X
PowerShares Financial Preferred Portfolio	X	N/A	X
PowerShares FTSE RAFI US 1000 Portfolio			X
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio	X		X
PowerShares Fundamental Pure Large Core Portfolio		X	X
PowerShares Fundamental Pure Large Growth Portfolio		X	X
PowerShares Fundamental Pure Large Value Portfolio			X
PowerShares Fundamental Pure Mid Core Portfolio			X
PowerShares Fundamental Pure Mid Growth Portfolio	X	X	X
PowerShares Fundamental Pure Mid Value Portfolio		X	X
PowerShares Fundamental Pure Small Core Portfolio	X		X
PowerShares Fundamental Pure Small Growth Portfolio		X	X
PowerShares Fundamental Pure Small Value Portfolio	X	X	X
PowerShares Global Listed Private Equity Portfolio	X	N/A	X
PowerShares Golden Dragon China Portfolio	X	N/A	X
PowerShares High Yield Equity Dividend Achievers Portfolio		X	X
PowerShares International Dividend Achievers Portfolio	X	X	X
PowerShares S&P 500 High Quality Portfolio			X
PowerShares Water Resources Portfolio		N/A	X
PowerShares WilderHill Clean Energy Portfolio		N/A	X
PowerShares WilderHill Progressive Energy Portfolio		N/A	X
PowerShares Zacks Micro Cap Portfolio			X

³  The information provided by the Adviser indicated that certain Funds did not have open-end index fund peers. Those Funds have been designated with an “N/A” for not available.

The Trustees determined that the advisory fees were reasonable, noting the nature of the indexes, the distinguishing factors of the Funds, and the administrative, operational and management oversight costs for the Adviser. The Trustees noted that the net expense ratios for certain Funds were equal to or lower than the median net expense ratios of their ETF and open-end index peer funds as illustrated in the table below. The Trustees also noted that the net expense ratios for all of the Funds were lower than the median net expense ratios of their open-end actively-managed peer funds.

PowerShares Fund	Equal to/Lower than ETF Median	Equal to/Lower than Open-End Index Fund Median	Equal to/Lower than Open-End Active Fund Median
PowerShares Aerospace & Defense Portfolio		N/A	X
PowerShares Buyback Achievers Portfolio			X
PowerShares Cleantech Portfolio		N/A	X
PowerShares Dividend Achievers Portfolio		X	X
PowerShares DWA Basic Materials Momentum Portfolio		N/A	X
PowerShares DWA Consumer Cyclicals Momentum Portfolio		N/A	X
PowerShares DWA Consumer Staples Momentum Portfolio		N/A	X

87

Board Considerations Regarding Continuation of Investment Advisory

Agreement (continued)

PowerShares Fund	Equal to/Lower than ETF Median	Equal to/Lower than Open-End Index Fund Median	Equal to/Lower than Open-End Active Fund Median
PowerShares DWA Energy Momentum Portfolio		N/A	X
PowerShares DWA Financial Momentum Portfolio		N/A	X
PowerShares DWA Healthcare Momentum Portfolio		N/A	X
PowerShares DWA Industrials Momentum Portfolio		N/A	X
PowerShares DWA Momentum Portfolio		X	X
PowerShares DWA NASDAQ Momentum Portfolio		X	X
PowerShares DWA Technology Momentum Portfolio		X	X
PowerShares DWA Utilities Momentum Portfolio		X	X
PowerShares Dynamic Biotechnology & Genome Portfolio		N/A	X
PowerShares Dynamic Building & Construction Portfolio		N/A	X
PowerShares Dynamic Energy Exploration & Production Portfolio		N/A	X
PowerShares Dynamic Food & Beverage Portfolio		N/A	X
PowerShares Dynamic Large Cap Growth Portfolio			X
PowerShares Dynamic Large Cap Value Portfolio			X
PowerShares Dynamic Leisure and Entertainment Portfolio		N/A	X
PowerShares Dynamic Market Portfolio			X
PowerShares Dynamic Media Portfolio		N/A	X
PowerShares Dynamic Networking Portfolio		X	X
PowerShares Dynamic Oil & Gas Services Portfolio		N/A	X
PowerShares Dynamic Pharmaceuticals Portfolio		N/A	X
PowerShares Dynamic Retail Portfolio		N/A	X
PowerShares Dynamic Semiconductors Portfolio		X	X
PowerShares Dynamic Software Portfolio		X	X
PowerShares Financial Preferred Portfolio	X	N/A	X
PowerShares FTSE RAFI US 1000 Portfolio			X
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio		X	X
PowerShares Fundamental Pure Large Core Portfolio		X	X
PowerShares Fundamental Pure Large Growth Portfolio		X	X
PowerShares Fundamental Pure Large Value Portfolio			X
PowerShares Fundamental Pure Mid Core Portfolio		X	X
PowerShares Fundamental Pure Mid Growth Portfolio	X	X	X
PowerShares Fundamental Pure Mid Value Portfolio		X	X
PowerShares Fundamental Pure Small Core Portfolio		X	X
PowerShares Fundamental Pure Small Growth Portfolio		X	X
PowerShares Fundamental Pure Small Value Portfolio		X	X
PowerShares Global Listed Private Equity Portfolio		N/A	X
PowerShares Golden Dragon China Portfolio	X	N/A	X
PowerShares High Yield Equity Dividend Achievers Portfolio		X	X
PowerShares International Dividend Achievers Portfolio	X	X	X
PowerShares S&P 500 High Quality Portfolio	X	X	X
PowerShares Water Resources Portfolio		N/A	X
PowerShares WilderHill Clean Energy Portfolio		N/A	X
PowerShares WilderHill Progressive Energy Portfolio		N/A	X
PowerShares Zacks Micro Cap Portfolio			X

88

Board Considerations Regarding Continuation of Investment Advisory

Agreement (continued)

The Trustees noted that a significant component of the non-advisory fee expenses was the license fees paid by the Funds, and noted 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.

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 overall profitability as well as the estimated profitability to the Adviser from its relationship to each Fund. The Trustees concluded that the overall and estimated profitability to the Adviser was not unreasonable.

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 DWA NASDAQ Momentum 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.

89

(This Page Intentionally Left Blank)

Proxy Voting Policies and Procedures

A description of the Trust’s 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 each Fund 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 Trust files its complete schedule of portfolio holdings for the Funds 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, DC; information on the operation of the Public Reference Room may be obtained by calling (800) SEC-0330.

Frequency Distribution of Discounts and Premiums

A table showing the number of days the market price of each Fund’s shares was greater than the Fund’s net asset value, and the number of days it was less than the Fund’s net asset value (i.e., premium or discount) for the most recently completed calendar year, and the calendar quarters since that year end (or the life of the Fund, if shorter) may be found at the Fund’s website at www.invescopowershares.com.

©2015 Invesco PowerShares Capital Management LLC			P-PS-AR-7
3500 Lacey Road, Suite 700 Downers Grove, IL 60515
invescopowershares.com    800.983.0903		@PowerShares

April 30, 2015

2015 Annual Report to Shareholders

PYZ	PowerShares DWA Basic Materials Momentum Portfolio
PEZ	PowerShares DWA Consumer Cyclicals Momentum Portfolio
PSL	PowerShares DWA Consumer Staples Momentum Portfolio
PXI	PowerShares DWA Energy Momentum Portfolio
PFI	PowerShares DWA Financial Momentum Portfolio
PTH	PowerShares DWA Healthcare Momentum Portfolio
PRN	PowerShares DWA Industrials Momentum Portfolio
PTF	PowerShares DWA Technology Momentum Portfolio
PUI	PowerShares DWA Utilities Momentum Portfolio
PNQI	PowerShares NASDAQ Internet Portfolio

Table of Contents

The Market Environment	3
Manager’s Analysis	4
Sector Portfolios
Schedules of Investments
PowerShares DWA Basic Materials Momentum Portfolio (PYZ)	34
PowerShares DWA Consumer Cyclicals Momentum Portfolio (PEZ)	35
PowerShares DWA Consumer Staples Momentum Portfolio (PSL)	36
PowerShares DWA Energy Momentum Portfolio (PXI)	37
PowerShares DWA Financial Momentum Portfolio (PFI)	38
PowerShares DWA Healthcare Momentum Portfolio (PTH)	39
PowerShares DWA Industrials Momentum Portfolio (PRN)	40
PowerShares DWA Technology Momentum Portfolio (PTF)	41
PowerShares DWA Utilities Momentum Portfolio (PUI)	42
PowerShares NASDAQ Internet Portfolio (PNQI)	43
Statements of Assets and Liabilities	46
Statements of Operations	48
Statements of Changes in Net Assets	50
Financial Highlights	54
Notes to Financial Statements	60
Report of Independent Registered Public Accounting Firm	70
Fees and Expenses	71
Tax Information	73
Trustees and Officers	74
Board Considerations Regarding Continuation of Investment Advisory Agreement	79

2

The Market Environment

Domestic Equity

Slow and steady improvement in the US economy and continued low interest rates led the US equity market higher during the fiscal year ended April 30, 2015. As the US economy continued along a slow growth path, the US Federal Reserve steadily reduced its asset purchase program, finally ending all purchases in October 2014. The reporting period began with corporate earnings bouncing back from a weather-related downturn resulting from an unusually harsh winter that negatively affected consumer spending. Stocks generally rallied through the summer of 2014 despite political upheaval in Ukraine and signs of economic sluggishness in China. In mid-September, as investors wrestled with evidence that economic growth appeared to be stronger in the US than in the rest of the world, the price of oil began a sharp and prolonged decline, causing US equities to fall. US equities recovered before the end of calendar year 2014, however. As calendar year 2015 began, investors were generally heartened by positive US economic data, but there was concern that if Greece failed to reach an agreement with the eurozone on a financial bailout plan, the repercussions would be felt more broadly. On balance, however, the general trend for US equities was positive.

3

PYZ	Manager’s Analysis
	PowerShares DWA Basic Materials Momentum Portfolio (PYZ)

As an index fund, the PowerShares DWA Basic Materials Momentum Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Dorsey Wright Basic Materials Technical Leaders^TM Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks of companies that comprise the Index. The basic materials companies that comprise the Index are principally engaged in the business of producing raw materials, including paper or wood products, chemicals, construction materials, and mining and metals.

Dorsey Wright & Associates, LLC (the “Index Provider”) compiles, maintains and calculates the Index. Strictly in accordance with its existing guidelines and mandated procedures, the Index Provider uses a proprietary methodology intended to identify objectively those securities within the universe of eligible securities that have the greatest potential for capital appreciation. The methodology evaluates these companies quarterly, based on a variety of criteria, including price momentum, earnings momentum, quality, management action, and value factors, to determine their relative strength, and it then ranks and sorts them based on their cumulative scores. Component securities for the Index are selected from among the companies with the highest-ranking cumulative score (“Model Score”) within the basic materials sub-group. In general, momentum is the tendency of an investment to exhibit persistence in its relative performance; a “momentum” style of investing emphasizes investing in securities that have had better recent performance compared to other securities. The momentum score for each security included in the Index is based on intermediate and long-term upward price movements of the security as compared to a representative benchmark and other eligible securities within the universe. The Index is composed of at least 30 common stocks of companies in the relevant sector with powerful relative strength characteristics, selected from a universe of approximately 3,000 common stocks traded on U.S. exchanges. “Relative strength” is an investing technique that seeks to determine the strongest performing securities by measuring certain factors, such as a security’s relative performance against the overall market or a security’s relative strength value, which is derived by comparing the rate of increase of the security’s price over a set period as compared to that of a benchmark index. The Index Provider weights each security according to its adjusted relative strength score, securities exhibiting greater relative strength and higher liquidity representing a greater weight in the Index. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2015, on a market price basis, the Fund returned 3.77%. On a net asset value (“NAV”) basis, the Fund returned 3.82%. During the same time period, the Index returned 4.50%. During the fiscal year, the Fund fully replicated

the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period.

During this same time period, the S&P 500^® Materials Index (the “Benchmark Index”) returned 7.30%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 30 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of other indices similar to the Index. The Benchmark Index was selected for its recognition in the marketplace as well as its shared exposure to the materials sector.

The performance of the Fund differed from the Benchmark Index in part because the Index employs a proprietary stock selection and weighting methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization. More specifically, relative to the Benchmark Index, the Fund was most overweight in the specialty chemicals sub-industry and most underweight in the fertilizers & agricultural chemicals sub-industry during the fiscal year ended April 30, 2015. The majority of the Fund’s underperformance relative to the Benchmark Index during the period can be attributed to the Fund’s stock selection within steel and diversified chemicals sub-industries as well as an allocation among the oil & gas equipment & services (no longer held) sub-industry.

For the fiscal year ended April 30, 2015, the specialty chemicals sub-industry contributed most significantly to the Fund’s return, followed by the life sciences tools & services and aluminum sub-industries, respectively. The steel sub-industry detracted most significantly from the Fund’s return, followed by the diversified chemicals and oil & gas equipment & services sub-industries, respectively.

Positions that contributed most significantly to the Fund’s return included Ashland, Inc., a diversified chemicals company (portfolio average weight of 4.63%), and Sigma-Aldrich Corp., a specialty chemicals company (no longer held at fiscal year-end). Positions that detracted most significantly from the Fund’s return included US Silica Holdings, Inc., an oil & gas equipment & services company (no longer held at fiscal year-end), and FMC Corp., a diversified chemicals company (portfolio average weight of 2.5%).

4

PowerShares DWA Basic Materials Momentum Portfolio (PYZ) (continued)

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2015
Specialty Chemicals	41.1
Diversified Chemicals	13.5
Industrial Gases	10.1
Commodity Chemicals	8.5
Paper Products	8.4
Fertilizers & Agricultural Chemicals	6.6
Aluminum	2.4
Forest Products	2.1
Specialized REITs	2.0
Oil & Gas Refining & Marketing	1.7
Diversified Metals & Mining	1.5
Life Sciences Tools & Services	1.2
Steel	0.9
Money Market Fund Plus Other Assets Less Liabilities	(0.0)
Top Ten Fund Holdings (% of the Fund’s Net Assets) as of April 30, 2015
Security
Ashland, Inc.	5.2
Airgas, Inc.	4.8
International Paper Co.	4.7
Westlake Chemical Corp.	4.5
Cytec Industries, Inc.	3.8
W.R. Grace & Co.	3.8
PPG Industries, Inc.	3.7
Dow Chemical Co. (The)	3.7
Valspar Corp. (The)	3.4
Monsanto Co.	3.4
Total	41.0

5

PowerShares DWA Basic Materials Momentum Portfolio (PYZ) (continued)

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

Fund Performance History as of April 30, 2015

	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			Fund Inception†
Index																Average Annualized			Cumulative
Blended-Dorsey Wright Basic Materials Technical LeadersTM Index††		4.50	%		14.23	%		49.07	%		13.95	%		92.12	%		11.55	%		154.62	%
S&P 500® Materials Index		7.30			13.41			45.85			11.39			71.48			7.83			90.55
Fund
NAV Return		3.82			13.47			46.10			13.12			85.22			10.61			136.70
Market Price Return		3.77			13.47			46.12			13.07			84.81			10.60			136.57

Fund Inception: October 12, 2006

Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2016. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.68% and the net annual operating expense ratio was indicated as 0.60%. The Financial Highlights section of the Shareholders Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market 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.

Blended-Index and Benchmark Index performance results are based upon a hypothetical investment in its constituent securities. Blended-Index and Benchmark returns do not represent Fund returns. An investor cannot invest directly in an index. The Blended-Index and Benchmark Index do 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.

^†  Fund, Blended-Index and Benchmark Index returns are based on the inception date of the Fund.

^††  The Blended-Dorsey Wright Basic Materials Technical Leaders^TM Index performance is comprised of the performance of the Dynamic Basic Materials Sector Intellidex^SM Index, the Fund’s previous underlying index, from Fund inception through the conversion date, February 19, 2014, followed by the performance of the Index, starting from the conversion date through April 30, 2015.

6

PEZ	Manager’s Analysis
	PowerShares DWA Consumer Cyclicals Momentum Portfolio (PEZ)

As an index fund, the PowerShares DWA Consumer Cyclicals Momentum Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Dorsey Wright Consumer Cyclicals Technical Leaders^TM Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks of companies that comprise the Index. The consumer cyclicals companies that comprise the Index are principally engaged in the businesses of providing consumer goods and services that are cyclical in nature, including retail, automotive, leisure and recreation, media and home construction and furnishing.

Dorsey Wright & Associates, LLC (the “Index Provider”) compiles, maintains and calculates the Index. Strictly in accordance with its existing guidelines and mandated procedures, the Index Provider uses a proprietary methodology intended to identify objectively those securities within the universe of eligible securities that have the greatest potential for capital appreciation. The methodology evaluates these companies quarterly, based on a variety of criteria, including price momentum, to determine their relative strength, and it then ranks and sorts them based on their cumulative scores. Component securities for the Index are selected from among the companies with the highest-ranking cumulative score (“Model Score”) within the consumer cyclicals sub-group. In general, momentum is the tendency of an investment to exhibit persistence in its relative performance; a “momentum” style of investing emphasizes investing in securities that have had better recent performance compared to other securities. The momentum score for each security included in the Index is based on intermediate and long-term upward price movements of the security as compared to a representative benchmark and other eligible securities within the universe. The Index is composed of at least 30 common stocks of companies in the consumer discretionary sector with powerful relative strength characteristics, selected from a universe of approximately 3,000 common stocks traded on U.S. exchanges. “Relative strength” is an investing technique that seeks to determine the strongest performing securities by measuring certain factors, such as a security’s relative performance against the overall market or a security’s relative strength value, which is derived by comparing the rate of increase of the security’s price over a set period as compared to that of a benchmark index. The Index Provider weights each security according to its adjusted relative strength score, securities exhibiting greater relative strength and higher liquidity representing a greater weight in the Index. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2015, on a market price basis, the Fund returned 16.06%. On a net asset value (“NAV”) basis, the Fund returned 15.91%. During the same time period, the Index returned 16.70%. During the fiscal year, the Fund fully

replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fee and operating expenses incurred by the Fund

During this same time period, the S&P 500^® Consumer Discretionary Index (the “Benchmark Index”) returned 19.84%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 85 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of other indices similar to the Index as well as to that of the broader-based market benchmarks. The Benchmark Index was selected for its recognition in the marketplace and its shared exposure to the consumer discretionary sector.

The performance of the Fund differed from the Benchmark Index in part because the Index employs a proprietary stock selection and weighting methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization. More specifically, relative to the Benchmark Index, the Fund was most overweight in the airlines sub-industry and most underweight in the movies & entertainment sub-industry during the fiscal year ended April 30, 2015. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to the Fund being underweight the movies & entertainment sub-industry.

For the fiscal year ended April 30, 2015, the automotive retail sub-industry contributed most significantly to the Fund’s return, followed by the apparel, accessories & luxury goods and airlines sub-industries, respectively. The drug retail sub-industry detracted most significantly from the Fund’s return.

Positions that contributed most significantly to the Fund’s return included O’Reilly Automotive, Inc., an automotive retail company (portfolio average weight of 5.15%), and Domino’s Pizza, Inc., a restaurants company (portfolio average weight of 4.24%). Positions that detracted most significantly from the Fund’s return included Rite Aid Corp., a drug retail company (portfolio average weight of 2.59%), and TripAdvisor, Inc., an internet retail company (no longer held at fiscal year-end).

7

PowerShares DWA Consumer Cyclicals Momentum Portfolio (PEZ) (continued)

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2015
Restaurants	13.9
Apparel, Accessories & Luxury Goods	11.7
Automotive Retail	10.3
Airlines	10.0
Apparel Retail	8.5
Department Stores	7.8
Specialty Stores	7.4
Footwear	4.8
Hotels, Resorts & Cruise Lines	4.3
Drug Retail	3.7
Leisure Products	3.1
Homefurnishing Retail	2.9
Home Entertainment Software	2.5
Broadcasting	2.3
Internet Retail	2.2
Cable & Satellite	2.2
Industrial Machinery	1.6
Movies & Entertainment	0.8
Money Market Fund Plus Other Assets Less Liabilities	(0.0)
Top Ten Fund Holdings (% of the Fund’s Net Assets) as of April 30, 2015
Security
O’Reilly Automotive, Inc.	6.1
Dillard’s, Inc., Class A	5.5
Domino’s Pizza, Inc.	5.4
Wyndham Worldwide Corp.	4.3
VF Corp.	4.1
Signet Jewelers Ltd.	4.0
Under Armour, Inc., Class A	3.8
Alaska Air Group, Inc.	3.7
Rite Aid Corp.	3.7
Tractor Supply Co.	3.4
Total	44.0

8

PowerShares DWA Consumer Cyclicals Momentum Portfolio (PEZ) (continued)

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

Fund Performance History as of April 30, 2015

	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			Fund Inception†
Index																Average Annualized			Cumulative
Blended-Dorsey Wright Consumer Cyclical Technical LeadersTM Index††		16.70	%		16.98	%		60.09	%		15.78	%		108.04	%		8.56	%		101.89	%
S&P 500® Consumer Discretionary Index		19.84			20.14			73.39			18.69			135.57			10.58			136.22
Fund
NAV Return		15.91			16.18			56.83			14.94			100.59			7.91			91.67
Market Price Return		16.06			16.20			56.88			14.92			100.43			7.91			91.73

Fund Inception: October 12, 2006

Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2016. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.91% and the net annual operating expense ratio was indicated as 0.60%. The Financial Highlights section of the Shareholders Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market 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.

Blended-Index and Benchmark Index performance results are based upon a hypothetical investment in its constituent securities. Blended-Index and Benchmark returns do not represent Fund returns. An investor cannot invest directly in an index. The Blended-Index and Benchmark Index do 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.

^†  Fund, Blended-Index and Benchmark Index returns are based on the inception date of the Fund.

^††  The Blended-Dorsey Wright Consumer Cyclicals Technical Leaders^TM Index performance is comprised of the performance of the Dynamic Consumer Discretionary Sector Intellidex^SM Index, the Fund’s previous underlying index, from Fund inception through the conversion date, February 19, 2014, followed by the performance of the Index, starting from the conversion date through April 30, 2015.

9

PSL	Manager’s Analysis
	PowerShares DWA Consumer Staples Momentum Portfolio (PSL)

As an index fund, the PowerShares DWA Consumer Staples Momentum Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Dorsey Wright Consumer Staples Technical Leaders^TM Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks of companies that comprise the Index. The consumer staples companies that comprise the Index are principally engaged in the businesses of providing consumer goods and services that have non-cyclical characteristics, including tobacco, textiles, food and beverage, and non-discretionary retail goods and services.

Dorsey Wright & Associates, LLC (the “Index Provider”) compiles, maintains and calculates the Index. Strictly in accordance with its existing guidelines and mandated procedures, the Index Provider uses a proprietary methodology intended to identify objectively those securities within the universe of eligible securities that have the greatest potential for capital appreciation. The methodology evaluates these companies quarterly, based on a variety of criteria, including price momentum, to determine their relative strength, and it then ranks and sorts them based on their cumulative scores. Component securities for the Index are selected from among the companies with the highest-ranking cumulative score (“Model Score”) within the consumer staples sub-group. In general, momentum is the tendency of an investment to exhibit persistence in its relative performance; a “momentum” style of investing emphasizes investing in securities that have had better recent performance compared to other securities. The momentum score for each security included in the Index is based on intermediate and long-term upward price movements of the security as compared to a representative benchmark and other eligible securities within the universe. The Index is composed of at least 30 common stocks of companies in the consumer staples sector with powerful relative strength characteristics, selected from a universe of approximately 3,000 common stocks traded on U.S. exchanges. “Relative strength” is an investing technique that seeks to determine the strongest performing securities by measuring certain factors, such as a security’s relative performance against the overall market or a security’s relative strength value, which is derived by comparing the rate of increase of the security’s price over a set period as compared to that of a benchmark index. The Index Provider weights each security according to its adjusted relative strength score, securities exhibiting greater relative strength and higher liquidity representing a greater weight in the Index. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2015, on a market price basis, the Fund returned 21.31%. On a net asset value (“NAV”) basis, the Fund returned 21.28%. During the same time period, the Index returned 21.98%. During the fiscal year, the Fund fully

replicated the components of the Index; therefore, the Fund’s

performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period.

During this same time period, the S&P 500^® Consumer Staples Index (the “Benchmark Index”) returned 12.36%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 40 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of other indices similar to the Index. The Benchmark Index was selected for its recognition in the marketplace and its shared exposure to the consumer staples sector.

The performance of the Fund differed from the Benchmark Index in part because the Index employs a proprietary stock selection and weighting methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization. More specifically, relative to the Benchmark Index, the Fund was most overweight in the packaged foods & meats sub-industry and most underweight in the household products sub-industry during the fiscal year ended April 30, 2015. The majority of the Fund’s outperformance relative to the Benchmark Index during that period can be attributed to stock selection within the packaged foods & meats and soft drinks sub-industries, as well as allocation to, and stock selection within, the household products sub-industry.

For the fiscal year ended April 30, 2015, the packaged foods & meats sub-industry contributed most significantly to the Fund’s return, followed by the soft drinks and housewares & specialties sub-industries, respectively. The education services sub-industry detracted most significantly from the Fund’s return, followed by the food distributors and food retail sub-industries, respectively.

Positions that contributed most significantly to the Fund’s return included Monster Beverage Corp., a soft drinks company (portfolio average weight of 3.87%), and Hillshire Brands Company, a packaged foods & meats company (no longer held at fiscal year-end). Positions that detracted most significantly from the Fund’s return included Apollo Education Group, Inc., an education services company (no longer held at fiscal year-end), and Capella Education Co., an education services company (portfolio average weight of 0.91%).

10

PowerShares DWA Consumer Staples Momentum Portfolio (PSL) (continued)

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2015
Packaged Foods & Meats	18.6
Food Retail	11.6
Tobacco	8.7
Soft Drinks	7.8
Housewares & Specialties	7.5
Household Products	7.1
Distillers & Vintners	6.9
Education Services	4.3
Specialized Consumer Services	3.4
Industrial Machinery	3.1
Environmental & Facilities Services	3.0
Trucking	2.8
Household Appliances	2.7
Internet Software & Services	2.6
Health Care Facilities	2.6
Food Distributors	2.6
Health Care Services	2.5
Distributors	2.2
Money Market Fund Plus Other Assets Less Liabilities	0.0
Top Ten Fund Holdings (% of the Fund’s Net Assets) as of April 30, 2015
Security
Altria Group, Inc.	4.5
Church & Dwight Co., Inc.	4.2
Monster Beverage Corp.	4.2
Reynolds American, Inc.	4.2
Jarden Corp.	4.2
Constellation Brands, Inc., Class A	4.0
Kraft Foods Group, Inc.	3.8
Hain Celestial Group, Inc. (The)	3.6
Dr Pepper Snapple Group, Inc.	3.6
Service Corp. International	3.4
Total	39.7

11

PowerShares DWA Consumer Staples Momentum Portfolio (PSL) (continued)

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

Fund Performance History as of April 30, 2015

	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			Fund Inception†
Index																Average Annualized			Cumulative
Blended-Dorsey Wright Consumer Staples Technical LeadersTM Index††		21.98	%		19.07	%		68.83	%		16.63	%		115.81	%		11.19	%		147.66	%
S&P 500® Consumer Staples Index		12.36			15.33			53.41			15.15			102.42			10.93			142.85
Fund
NAV Return		21.28			18.34			65.71			15.88			108.91			10.44			133.75
Market Price Return		21.31			18.35			65.77			15.88			108.93			10.44			133.70

Fund Inception: October 12, 2006

Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2016. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.79% and the net annual operating expense ratio was indicated as 0.60%. The Financial Highlights section of the Shareholders Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market 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.

Blended-Index and Benchmark Index performance results are based upon a hypothetical investment in its constituent securities. Blended-Index and Benchmark returns do not represent Fund returns. An investor cannot invest directly in an index. The Blended-Index and Benchmark Index do 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.

^†  Fund, Blended-Index and Benchmark Index returns are based on the inception date of the Fund.

^††  The Blended-Dorsey Wright Consumer Staples Technical Leaders^TM Index performance is comprised of the performance of the Dynamic Consumer Staples Sector Intellidex^SM Index, the Fund’s previous underlying index, from Fund inception through the conversion date, February 19, 2014, followed by the performance of the Index, starting from the conversion date through April 30, 2015.

12

PXI	Manager’s Analysis
	PowerShares DWA Energy Momentum Portfolio (PXI)

As an index fund, the PowerShares DWA Energy Momentum Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Dorsey Wright Energy Technical Leaders^TM Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks of companies that comprise the Index. The energy companies that comprise the Index are principally engaged in the business of producing, distributing or servicing energy-related products, including oil and gas exploration and production, refining, oil services, pipeline, and solar, wind and other non-oil based energy.

Dorsey Wright & Associates, LLC (the “Index Provider”) compiles, maintains and calculates the Index. Strictly in accordance with its existing guidelines and mandated procedures, the Index Provider uses a proprietary methodology intended to identify objectively those securities within the universe of eligible securities that have the greatest potential for capital appreciation. The methodology evaluates these companies quarterly, based on a variety of criteria, including price momentum, to determine their relative strength, and it then ranks and sorts them based on their cumulative scores. Component securities for the Index are selected from among the companies with the highest-ranking cumulative score (“Model Score”) within the energy sub-group. In general, momentum is the tendency of an investment to exhibit persistence in its relative performance; a “momentum” style of investing emphasizes investing in securities that have had better recent performance compared to other securities. The momentum score for each security included in the Index is based on intermediate and long-term upward price movements of the security as compared to a representative benchmark and other eligible securities within the universe. The Index is composed of at least 30 common stocks of companies in the energy sector with powerful relative strength characteristics, selected from a universe of approximately 3,000 common stocks traded on U.S. exchanges. “Relative strength” is an investing technique that seeks to determine the strongest performing securities by measuring certain factors, such as a security’s relative performance against the overall market or a security’s relative strength value, which is derived by comparing the rate of increase of the security’s price over a set period as compared to that of a benchmark index. The Index Provider weights each security according to its adjusted relative strength score, with securities exhibiting greater relative strength representing a greater weight in the Index. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2015, on a market price basis, the Fund returned (17.02)%. On a net asset value (“NAV”) basis, the Fund returned (17.08)%. During the same time period, the Index returned (16.53)%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the

Index primarily due to fees and operating expenses that the Fund incurred during the period.

During this same time period, the S&P 500^® Energy Index (the “Benchmark Index”) returned (9.85)% The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 40 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of other indices similar to the Index. The Benchmark Index was selected for its recognition in the marketplace as well as its shared exposure to the energy sector.

The performance of the Fund differed from the Benchmark Index in part because the Index employs a proprietary stock selection and weighting methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization. More specifically, relative to the Benchmark Index, the Fund was most overweight in the oil & gas exploration & production sub-industry and most underweight in the integrated oil & gas sub-industry during the fiscal year ended April 30, 2015. The majority of the Fund’s underperformance relative to the Benchmark Index during the period can be attributed to stock selection within the oil & gas exploration & production and oil & gas equipment & services sub-industries.

For the fiscal year ended April 30, 2015, the oil & gas storage & transportation sub-industry contributed most significantly to the Fund’s return, followed by the oil & gas refining & marketing sub-industry. The oil & gas exploration & production sub-industry detracted most significantly from the Fund’s return, followed by the oil & gas equipment & services and oil & gas drilling (no longer held) sub-industries, respectively.

Positions that contributed most significantly to the Fund’s return included Cheniere Energy, Inc., an oil & gas exploration & production company (portfolio average weight of 6.35%), and Tesoro Corp., an oil & gas refining & marketing company (portfolio average weight of 3.2%). Positions that detracted most significantly from the Fund’s return included Continental Resources, Inc., an oil & gas exploration & production company (no longer held at fiscal year-end), and Flotek Industries, Inc., a specialty chemicals company (no longer held at fiscal year-end).

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2015
Oil & Gas Exploration & Production	42.5
Oil & Gas Refining & Marketing	22.3
Oil & Gas Storage & Transportation	16.8
Oil & Gas Equipment & Services	11.0
Integrated Oil & Gas	7.3
Money Market Fund Plus Other Assets Less Liabilities	0.1

13

PowerShares DWA Energy Momentum Portfolio (PXI) (continued)

Top Ten Fund Holdings (% of the Fund’s Net Assets) as of April 30, 2015
Security
Concho Resources, Inc.	5.2
Cheniere Energy, Inc.	4.4
Pioneer Natural Resources Co.	4.4
Tesoro Corp.	3.9
Williams Cos., Inc. (The)	3.5
Western Refining, Inc.	3.3
Valero Energy Corp.	3.2
Marathon Petroleum Corp.	3.0
Cimarex Energy Co.	3.0
Phillips 66	3.0
Total	36.9

14

PowerShares DWA Energy Momentum Portfolio (PXI) (continued)

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

Fund Performance History as of April 30, 2015

	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			Fund Inception†
Index																Average Annualized			Cumulative
Blended-Dorsey Wright Energy Technical LeadersTM Index††		(16.53	)%		8.93	%		29.25	%		12.52	%		80.39	%		9.39	%		115.45	%
S&P 500® Energy Index		(9.85	)		6.71			21.51			8.45			50.04			6.82			75.74
Fund
NAV Return		(17.08	)		8.18			26.60			11.76			74.36			8.72			104.30
Market Price Return		(17.02	)		8.16			26.54			11.76			74.36			8.73			104.46

Fund Inception: October 12, 2006

Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2016. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.79% and the net annual operating expense ratio was indicated as 0.60%. The Financial Highlights section of the Shareholders Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market 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.

Blended-Index and Benchmark Index performance results are based upon a hypothetical investment in its constituent securities. Blended-Index and Benchmark returns do not represent Fund returns. An investor cannot invest directly in an index. The Blended-Index and Benchmark Index do 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.

^†  Fund, Blended-Index and Benchmark Index returns are based on the inception date of the Fund.

^††  The Blended-Dorsey Wright Energy Technical Leaders^TM Index performance is comprised of the performance of the Dynamic Energy Sector Intellidex^SM Index, the Fund’s previous underlying index, from Fund inception through the conversion date, February 19, 2014, followed by the performance of the Index, starting from the conversion date through April 30, 2015.

15

PFI	Manager’s Analysis
	PowerShares DWA Financial Momentum Portfolio (PFI)

As an index fund, the PowerShares DWA Financial Momentum Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Dorsey Wright Financials Technical Leaders^TM Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks of companies that comprise the Index.

Dorsey Wright & Associates, LLC (the “Index Provider”) compiles, maintains and calculates the Index. Strictly in accordance with its existing guidelines and mandated procedures, the Index Provider uses a proprietary methodology intended to identify objectively those securities within the universe of eligible securities that have the greatest potential for capital appreciation. The methodology evaluates these companies quarterly, based on a variety of criteria, including price momentum, to determine their relative strength, and it then ranks and sorts them based on their cumulative scores. Component securities for the Index are selected from among the companies with the highest-ranking cumulative score (“Model Score”) within the financials sub-group. In general, momentum is the tendency of an investment to exhibit persistence in its relative performance; a “momentum” style of investing emphasizes investing in securities that have had better recent performance compared to other securities. The momentum score for each security included in the Index is based on intermediate and long-term upward price movements of the security as compared to a representative benchmark and other eligible securities within the universe. The Index is composed of at least 30 common stocks of companies in the financial sector with powerful relative strength characteristics, selected from a universe of approximately 3,000 common stocks traded on U.S. exchanges. “Relative strength” is an investing technique that seeks to determine the strongest performing securities by measuring certain factors, such as a security’s relative performance against the overall market or a security’s relative strength value, which is derived by comparing the rate of increase of the security’s price over a set period as compared to that of a benchmark index. The Index Provider weights each security according to its adjusted relative strength score, securities exhibiting greater relative strength and higher liquidity representing a greater weight in the Index. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2015, on a market price basis, the Fund returned 11.96%. On a net asset value (“NAV”) basis, the Fund returned 11.84%. During the same time period, the Index returned 12.58%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fee and operating expenses incurred by the fund.

During this same time period, the S&P 500^® Financials Index (the “Benchmark Index”) returned 11.88%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 90 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of a broad-based market benchmark. The Benchmark Index was selected for its recognition in the marketplace, and its shared exposure to the financials sector.

The performance of the Fund differed from the Benchmark Index in part because the Index employs a proprietary stock selection and weighting methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization. More specifically, relative to the Benchmark Index, the Fund was most overweight in the data processing & outsourced services sub-industry and most underweight in the diversified banks sub-industry during the fiscal year ended April 30, 2015.

For the fiscal year ended April 30, 2015, the regional banks sub-industry contributed most significantly to the Fund’s return, followed by the data processing & outsourced services and residential REITs sub-industries, respectively. The retail REITs sub-industry detracted most significantly from the Fund’s return, followed by the thrifts & mortgage finance and office REITs sub-industries, respectively.

Positions that contributed most significantly to the Fund’s return included Extra Space Storage, Inc. REIT, a specialized REITs company (portfolio average weight of 3.35%), and NorthStar Realty Finance Corp. REIT, a diversified REITs company (portfolio average weight of 3.26%). Positions that detracted most significantly from the Fund’s return included Genworth Financial, Inc., Class A, a multi-line insurance company (no longer held at fiscal year-end), and MGIC Investment Corp., a thrifts & mortgage finance company (no longer held at fiscal year-end).

16

PowerShares DWA Financial Momentum Portfolio (PFI) (continued)

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2015
Retail REITs	19.5
Health Care REITs	11.5
Specialized REITs	9.6
Regional Banks	8.1
Asset Management & Custody Banks	7.0
Residential REITs	6.5
Specialized Finance	4.6
Office REITs	4.1
Hotel & Resort REITs	3.8
Data Processing & Outsourced Services	3.6
Multi-line Insurance	3.2
Real Estate Services	3.0
Diversified REITs	2.7
Internet Software & Services	2.5
Thrifts & Mortgage Finance	2.4
Property & Casualty Insurance	2.2
Diversified Banks	2.1
Diversified Capital Markets	1.3
Industrial REITs	1.2
Life & Health Insurance	1.1
Money Market Fund Plus Other Assets Less Liabilities	0.0
Top Ten Fund Holdings (% of the Fund’s Net Assets) as of April 30, 2015
Security
OMEGA Healthcare Investors, Inc. REIT	5.1
Simon Property Group, Inc. REIT	5.1
Public Storage REIT	4.9
Federal Realty Investment Trust REIT	4.5
Health Care REIT, Inc. REIT	4.4
Camden Property Trust REIT	3.6
Macerich Co. (The) REIT	3.4
Realty Income Corp. REIT	3.3
Extra Space Storage, Inc. REIT	3.2
CBRE Group, Inc., Class A	3.0
Total	40.5

17

PowerShares DWA Financial Momentum Portfolio (PFI) (continued)

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

Fund Performance History as of April 30, 2015

	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			Fund Inception†
Index																Average Annualized			Cumulative
Blended-Dorsey Wright Financials Technical LeadersTM Index††		12.58	%		17.72	%		63.15	%		13.14	%		85.36	%		4.48	%		45.48	%
S&P 500® Financials Index		11.88			18.35			65.75			10.27			63.05			(2.29	)		(17.94	)
Fund
NAV Return		11.84			16.87			59.63			12.32			78.80			3.67			36.09
Market Price Return		11.96			16.89			59.71			12.34			78.90			3.68			36.14

Fund Inception: October 12, 2006

Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2016. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.92%, including estimated acquired fund fees and expenses of 0.01% and the net annual operating expense ratio was indicated as 0.61%. The Financial Highlights section of the Shareholders Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market 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.

Blended-Index and Benchmark Index performance results are based upon a hypothetical investment in its constituent securities. Blended-Index and Benchmark returns do not represent Fund returns. An investor cannot invest directly in an index. The Blended-Index and Benchmark Index do 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.

^†  Fund, Blended-Index and Benchmark Index returns are based on the inception date of the Fund.

^††  The Blended-Dorsey Wright Financials Technical Leaders^TM Index performance is comprised of the performance of the Dynamic Financial Sector Intellidex^SM Index, the Fund’s previous underlying index, from Fund inception through the conversion date, February 19, 2014, followed by the performance of the Index, starting from the conversion date through April 30, 2015.

18

PTH	Manager’s Analysis
	PowerShares DWA Healthcare Momentum Portfolio (PTH)

As an index fund, the PowerShares DWA Healthcare Momentum Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Dorsey Wright Healthcare Technical Leaders^TM Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks of companies that comprise the Index. The health care companies that comprise the Index are principally engaged in the business of providing health care-related products and services, including biotechnology, pharmaceuticals, medical technology and supplies, and facilities.

Dorsey Wright & Associates, LLC (the “Index Provider”) compiles, maintains and calculates the Index. Strictly in accordance with its existing guidelines and mandated procedures, the Index Provider uses a proprietary methodology intended to identify objectively those securities within the universe of eligible securities that have the greatest potential for capital appreciation. The methodology evaluates these companies quarterly, based on a variety of criteria, including price momentum, to determine their relative strength, and it then ranks and sorts them based on their cumulative scores. Component securities for the Index are selected from among the companies with the highest-ranking cumulative score (“Model Score”) within the health care sub-group. In general, momentum is the tendency of an investment to exhibit persistence in its relative performance; a “momentum” style of investing emphasizes investing in securities that have had better recent performance compared to other securities. The momentum score for each security included in the Index is based on intermediate and long-term upward price movements of the security as compared to a representative benchmark and other eligible securities within the universe. The Index is composed of at least 30 common stocks of companies in the health care sector with powerful relative strength characteristics, selected from a universe of approximately 3,000 common stocks traded on U.S. exchanges. “Relative strength” is an investing technique that seeks to determine the strongest performing securities by measuring certain factors, such as a security’s relative performance against the overall market or a security’s relative strength value, which is derived by comparing the rate of increase of the security’s price over a set period as compared to that of a benchmark index. The Index Provider weights each security according to its adjusted relative strength score, securities exhibiting greater relative strength and higher liquidity representing a greater weight in the Index. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2015, on a market price basis, the Fund returned 27.13%. On a net asset value (“NAV”) basis, the Fund returned 27.22%. During the same time period, the Index returned 28.09%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the

Index primarily due to fees and operating expenses that the Fund incurred during the period.

During this same time period, the S&P 500^® Health Care Index (the “Benchmark Index”) returned 25.12%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 55 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of other indices similar to the Index. The Benchmark Index was selected for its recognition in the marketplace and its shared exposure to the health care sector.

The performance of the Fund differed from the Benchmark Index in part because the Index employs a proprietary stock selection and weighting methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization. More specifically, relative to the Benchmark Index, the Fund was most overweight in the biotechnology sub-industry and most underweight in the pharmaceuticals sub-industry during the fiscal year ended April 30, 2015. The majority of the Fund’s outperformance relative to the Benchmark Index during the period can be attributed to stock selection within the biotechnology sub-industry.

For the fiscal year ended April 30, 2015, the biotechnology sub-industry contributed most significantly to the Fund’s return, followed by the pharmaceuticals and managed health care sub-industries, respectively. There were no detracting sub-industries.

Positions that contributed most significantly to the Fund’s return included Avanir Pharmaceuticals, Inc. Class A, a pharmaceuticals company (no longer held at fiscal year-end), and Medivation, Inc., a biotechnology company (portfolio average weight of 4.48%). Positions that detracted most significantly from the Fund’s return included MannKind Corp., a biotechnology company (no longer held at fiscal year-end), and NPS Pharmaceuticals, Inc., a biotechnology company (no longer held at fiscal year-end).

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2015
Biotechnology	45.9
Pharmaceuticals	18.2
Managed Health Care	12.8
Health Care Equipment	8.4
Health Care Supplies	5.2
Life Sciences Tools & Services	5.0
Health Care Facilities	4.5
Money Market Fund Plus Other Assets Less Liabilities	(0.0)

19

PowerShares DWA Healthcare Momentum Portfolio (PTH) (continued)

Top Ten Fund Holdings (% of the Fund’s Net Assets) as of April 30, 2015
Security
Regeneron Pharmaceuticals, Inc.	5.1
Medivation, Inc.	4.6
Actavis PLC	4.3
Cooper Cos., Inc. (The)	4.3
Mylan NV	3.9
Cigna Corp.	3.9
IDEXX Laboratories, Inc.	3.6
Incyte Corp.	3.5
Illumina, Inc.	3.3
Biogen, Inc.	3.3
Total	39.8

20

PowerShares DWA Healthcare Momentum Portfolio (PTH) (continued)

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

Fund Performance History as of April 30, 2015

	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			Fund Inception†
Index																Average Annualized			Cumulative
Blended-Dorsey Wright Healthcare Technical LeadersTM Index††		28.09	%		22.76	%		85.00	%		18.73	%		135.90	%		11.31	%		149.95	%
S&P 500® Health Care Index		25.12			26.38			101.87			20.71			156.26			11.59			155.32
Fund
NAV Return		27.22			21.91			81.20			17.90			127.84			10.50			134.83
Market Price Return		27.13			21.87			81.02			17.90			127.76			10.49			134.67

Fund Inception: October 12, 2006

Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2016. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.68% and the net annual operating expense ratio was indicated as 0.60%. The Financial Highlights section of the Shareholders Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market 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.

Blended-Index and Benchmark Index performance results are based upon a hypothetical investment in its constituent securities. Blended-Index and Benchmark returns do not represent Fund returns. An investor cannot invest directly in an index. The Blended-Index and Benchmark Index do 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.

^†  Fund, Blended-Index and Benchmark Index returns are based on the inception date of the Fund.

^††  The Blended-Dorsey Wright Healthcare Technical Leaders^TM Index performance is comprised of the performance of the Dynamic Healthcare Sector Intellidex^SM Index, the Fund’s previous underlying index, from Fund inception through the conversion date, February 19, 2014, followed by the performance of the Index, starting from the conversion date through April 30, 2015.

21

PRN	Manager’s Analysis
	PowerShares DWA Industrials Momentum Portfolio (PRN)

As an index fund, the PowerShares DWA Industrials Momentum Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Dorsey Wright Industrials Technical Leaders^TM Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks of companies that comprise the Index. The industrial companies that comprise the Index are principally engaged in the business of providing industrial products and services, including engineering, heavy machinery, construction, electrical equipment, aerospace and defense and general manufacturing products and services.

Dorsey Wright & Associates, LLC (the “Index Provider”) compiles, maintains and calculates the Index. Strictly in accordance with its existing guidelines and mandated procedures, the Index Provider uses a proprietary methodology intended to identify objectively those securities within the universe of eligible securities that have the greatest potential for capital appreciation. The methodology evaluates these companies quarterly, based on a variety of criteria, including price momentum, to determine their relative strength, and it then ranks and sorts them based on their cumulative scores. Component securities for the Index are selected from among the companies with the highest-ranking cumulative score (“Model Score”) within the industrials sub-group. In general, momentum is the tendency of an investment to exhibit persistence in its relative performance; a “momentum” style of investing emphasizes investing in securities that have had better recent performance compared to other securities. The momentum score for each security included in the Index is based on intermediate and long-term upward price movements of the security as compared to a representative benchmark and other eligible securities within the universe. The Index is composed of at least 30 common stocks of companies in the industrials sector with powerful relative strength characteristics, selected from a universe of approximately 3,000 common stocks traded on U.S. exchanges. “Relative strength” is an investing technique that seeks to determine the strongest performing securities by measuring certain factors, such as a security’s relative performance against the overall market or a security’s relative strength value, which is derived by comparing the rate of increase of the security’s price over a set period as compared to that of a benchmark index. The Index Provider weights each security according to its adjusted relative strength score, securities exhibiting greater relative strength and higher liquidity representing a greater weight in the Index. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2015, on a market price basis, the Fund returned 1.23%. On a net asset value (“NAV”) basis, the Fund returned 1.12%. During the same time period, the Index returned 1.79%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance,

on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period.

During this same time period, the S&P 500^® Industrials Index (the “Benchmark Index”) returned 7.05%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 65 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of indices similar to the Index. The Benchmark Index was selected for its shared exposure to the industrial sector and recognition in the marketplace.

The performance of the Fund differed from the Benchmark Index in part because the Index employs a proprietary stock selection and weighting methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization. More specifically, relative to the Benchmark Index, the Fund was most overweight in the data processing & outsourced services sub-industry and most underweight in the industrial conglomerates sub-industry during the fiscal year ended April 30, 2015. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to stock selection within the construction & farm machinery & heavy trucks sub-industry, as well as allocation to the railroads sub-industry.

For the fiscal year ended April 30, 2015, the aerospace & defense sub-industry contributed most significantly to the Fund’s return, followed by the specialty chemicals and data processing & outsourced services sub-industries, respectively. The construction & farm machinery & heavy trucks sub-industry detracted most significantly from the Fund’s return, followed by the industrial machinery and electrical components & equipment sub-industries, respectively.

Positions that contributed most significantly to the Fund’s return included Sherwin-Williams Co., a specialty chemicals company (portfolio average weight of 4.7%), and SunPower Corp., a semiconductors company (no longer held at fiscal year-end). Positions that detracted most significantly from the Fund’s return included Trinity Industries, Inc., a construction & farm machinery & heavy trucks company (no longer held at fiscal year-end), and Generac Holdings, Inc., an electrical components & equipment company (no longer held at fiscal year-end).

22

PowerShares DWA Industrials Momentum Portfolio (PRN) (continued)

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2015
Aerospace & Defense	18.2
Railroads	14.7
Industrial Machinery	7.4
Building Products	5.4
Specialty Chemicals	4.8
Trucking	4.7
Paper Packaging	4.6
Research & Consulting Services	4.1
IT Consulting & Other Services	3.8
Life Sciences Tools & Services	3.3
Data Processing & Outsourced Services	3.2
Construction Materials	2.4
Diversified Support Services	2.3
Trading Companies & Distributors	2.3
Human Resource & Employment Services	2.3
Industrial Conglomerates	2.0
Health Care Services	2.0
Commercial Printing	1.8
Electronic Equipment & Instruments	1.7
Internet Software & Services	1.5
Electrical Components & Equipment	1.3
Application Software	1.3
Construction & Farm Machinery & Heavy Trucks	1.2
Air Freight & Logistics	1.0
Distributors	1.0
Electronic Manufacturing Services	1.0
Consumer Electronics	0.7
Money Market Fund Plus Other Assets Less Liabilities	(0.0)
Top Ten Fund Holdings (% of the Fund’s Net Assets) as of April 30, 2015
Security
Sherwin-Williams Co. (The)	4.8
TransDigm Group, Inc.	4.5
Lockheed Martin Corp.	4.4
CSX Corp.	4.3
Dun & Bradstreet Corp. (The)	4.1
Union Pacific Corp.	4.1
Norfolk Southern Corp.	3.7
Northrop Grumman Corp.	3.4
Mettler-Toledo International, Inc.	3.3
FleetCor Technologies, Inc.	3.2
Total	39.8

23

PowerShares DWA Industrials Momentum Portfolio (PRN) (continued)

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

Fund Performance History as of April 30, 2015

	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			Fund Inception†
Index																Average Annualized			Cumulative
Blended-Dorsey Wright Industrials Technical LeadersTM Index††		1.79	%		18.12	%		64.82	%		15.24	%		103.26	%		9.12	%		110.95	%
S&P 500® Industrials Index		7.05			17.07			60.44			13.57			88.97			7.47			85.09
Fund
NAV Return		1.12			17.15			60.78			14.21			94.32			8.19			96.01
Market Price Return		1.23			17.18			60.92			14.22			94.44			8.20			96.14

Fund Inception: October 12, 2006

Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2016. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.66% and the net annual operating expense ratio was indicated as 0.60%. The Financial Highlights section of the Shareholders Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market 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.

Blended-Index and Benchmark Index performance results are based upon a hypothetical investment in its constituent securities. Blended-Index and Benchmark returns do not represent Fund returns. An investor cannot invest directly in an index. The Blended-Index and Benchmark Index do 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.

^†  Fund, Blended-Index and Benchmark Index returns are based on the inception date of the Fund.

^††  The Blended-Dorsey Wright Industrials Technical Leaders^TM Index performance is comprised of the performance of the Dynamic Industrials Sector Intellidex^SM Index, the Fund’s previous underlying index, from Fund inception through the conversion date, February 19, 2014, followed by the performance of the Index, starting from the conversion date through April 30, 2015.

24

PTF	Manager’s Analysis
	PowerShares DWA Technology Momentum Portfolio (PTF)

As an index fund, the PowerShares DWA Technology Momentum Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Dorsey Wright Technology Technical Leaders^TM Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks of companies that comprise the Index. The technology companies that comprise the Index are principally engaged in the business of providing technology-related products and services, including computer hardware and software, Internet, electronics and semiconductors, and communication technologies.

Dorsey Wright & Associates, LLC (the “Index Provider”) compiles, maintains and calculates the Index. Strictly in accordance with its existing guidelines and mandated procedures, the Index Provider uses a proprietary methodology intended to identify objectively those securities within the universe of eligible securities that have the greatest potential for capital appreciation. The methodology evaluates these companies quarterly, based on a variety of criteria, including price momentum, to determine their relative strength, and it then ranks and sorts them based on their cumulative scores. Component securities for the Index are selected from among the companies with the highest-ranking cumulative score (“Model Score”) within the technology sub-group. In general, momentum is the tendency of an investment to exhibit persistence in its relative performance; a “momentum” style of investing emphasizes investing in securities that have had better recent performance compared to other securities. The momentum score for each security included in the Index is based on intermediate and long-term upward price movements of the security as compared to a representative benchmark and other eligible securities within the universe. The Index is composed of at least 30 common stocks of companies in the technology sector with powerful relative strength characteristics, selected from a universe of approximately 3,000 common stocks traded on U.S. exchanges. “Relative strength” is an investing technique that seeks to determine the strongest performing securities by measuring certain factors, such as a security’s relative performance against the overall market or a security’s relative strength value, which is derived by comparing the rate of increase of the security’s price over a set period as compared to that of a benchmark index. The Index Provider weights each security according to its adjusted relative strength score, securities exhibiting greater relative strength and higher liquidity representing a greater weight in the Index. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2015, on a market price basis, the Fund returned 25.22%. On a net asset value (“NAV”) basis, the Fund returned 25.29%. During the same time period, the Index returned 26.22%. During the fiscal year, the Fund attempted to fully replicate the components of the Index, subject

to restrictions associated with being a diversified fund. The Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees, operating expenses and rebalance transaction costs that the Fund incurred during the period.

During this same time period, the S&P 500^® Information Technology Index (the “Benchmark Index”) returned 20.53%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 65 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of other indices similar to the Index. The Benchmark Index was selected for its recognition in the marketplace and its shared exposure to the technology sector.

The performance of the Fund differed from the Benchmark Index in part because the Index employs a proprietary stock selection and weighting methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization. More specifically, relative to the Benchmark Index, the Fund was most overweight in the application software sub-industry and most underweight in the technology hardware, storage & peripherals sub-industry during the fiscal year ended April 30, 2015. The majority of the Fund’s outperformance relative to the Benchmark Index during that period can be attributed to stock selection within the semiconductors sub-industry.

For the fiscal year ended April 30, 2015, the semiconductors sub-industry contributed most significantly to the Fund’s return, followed by the application software and technology hardware, storage & peripherals sub-industries, respectively. The electronic manufacturing services (no longer held) sub-industry detracted most significantly from the Fund’s return, followed by the IT consulting & other services and construction & engineering (no longer held) sub-industries, respectively.

Positions that contributed most significantly to the Fund’s return included Skyworks Solutions, Inc., a semiconductors company (portfolio average weight of 4.24%), and Apple, Inc., a technology hardware, storage & peripherals company (portfolio average weight of 5.93%). Positions that detracted most significantly from the Fund’s return included Alliance Fiber Optic Products, Inc., a communications equipment company (no longer held at fiscal year-end), and Maxwell Technologies, Inc., an electronic manufacturing services company (no longer held at fiscal year-end).

25

PowerShares DWA Technology Momentum Portfolio (PTF) (continued)

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2015
Application Software	23.7
Semiconductors	17.0
Technology Hardware, Storage & Peripherals	11.4
Electronic Components	8.1
Internet Software & Services	7.2
Communications Equipment	6.3
Systems Software	5.5
Wireless Telecommunication Services	4.8
IT Consulting & Other Services	3.6
Alternative Carriers	3.5
Health Care Technology	2.9
Data Processing & Outsourced Services	1.7
Electronic Equipment & Instruments	1.6
Technology Distributors	1.5
Semiconductor Equipment	1.2
Money Market Fund Plus Other Assets Less Liabilities	(0.0)
Top Ten Fund Holdings (% of the Fund’s Net Assets) as of April 30, 2015
Security
Apple, Inc.	7.0
Amphenol Corp., Class A	6.4
Intuit, Inc.	5.2
Skyworks Solutions, Inc.	5.0
Ellie Mae, Inc.	3.0
Cerner Corp.	2.9
SBA Communications Corp., Class A	2.7
Palo Alto Networks, Inc.	2.6
Manhattan Associates, Inc.	2.5
Facebook, Inc., Class A	2.5
Total	39.8

26

PowerShares DWA Technology Momentum Portfolio (PTF) (continued)

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

Fund Performance History as of April 30, 2015

	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			Fund Inception†
Index																Average Annualized			Cumulative
Blended-Dorsey Wright Technology Technical LeadersTM Index††		26.22	%		15.44	%		53.83	%		12.55	%		80.59	%		6.47	%		70.95	%
S&P 500® Information Technology Index		20.53			15.22			52.96			14.68			98.33			10.00			125.84
Fund
NAV Return		25.29			14.55			50.32			11.70			73.91			5.71			60.70
Market Price Return		25.22			14.56			50.34			11.71			73.94			5.70			60.67

Fund Inception: October 12, 2006

Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2016. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.80% and the net annual operating expense ratio was indicated as 0.60%. The Financial Highlights section of the Shareholders Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market 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.

Blended-Index and Benchmark Index performance results are based upon a hypothetical investment in its constituent securities. Blended-Index and Benchmark returns do not represent Fund returns. An investor cannot invest directly in an index. The Blended-Index and Benchmark Index do 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.

^†  Fund, Blended-Index and Benchmark Index returns are based on the inception date of the Fund.

^††  The Blended-Dorsey Wright Technology Technical Leaders^TM Index performance is comprised of the performance of the Dynamic Technology Sector Intellidex^SM Index, the Fund’s previous underlying index, from Fund inception through the conversion date, February 19, 2014, followed by the performance of the Index, starting from the conversion date through April 30, 2015.

27

PUI	Manager’s Analysis
	PowerShares DWA Utilities Momentum Portfolio (PUI)

As an index fund, the PowerShares DWA Utilities Momentum Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Dorsey Wright Utilities Technical Leaders^TM Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks of companies that comprise the Index. The utilities companies that comprise the Index may include companies that generate and supply electricity, including electricity wholesalers; distribute natural gas to customers; provide water to customers, as well as deal with associated wastewater; and provide land line or wireless telephone services.

Dorsey Wright & Associates, LLC (the “Index Provider”) compiles, maintains and calculates the Index. Strictly in accordance with its existing guidelines and mandated procedures, the Index Provider uses a proprietary methodology intended to identify objectively those securities within the universe of eligible securities that have the greatest potential for capital appreciation. The methodology evaluates these companies quarterly, based on a variety of criteria, including price momentum, to determine their relative strength, and it then ranks and sorts them based on their cumulative scores. Component securities for the Index are selected from among the companies with the highest-ranking cumulative score (“Model Score”) within the utilities sub-group. In general, momentum is the tendency of an investment to exhibit persistence in its relative performance; a “momentum” style of investing emphasizes investing in securities that have had better recent performance compared to other securities. The momentum score for each security included in the Index is based on intermediate and long-term upward price movements of the security as compared to a representative benchmark and other eligible securities within the universe. The Index is composed of at least 30 common stocks of companies in the utilities sector with powerful relative strength characteristics, selected from a universe of approximately 3,000 common stocks traded on U.S. exchanges. “Relative strength” is an investing technique that seeks to determine the strongest performing securities by measuring certain factors, such as a security’s relative performance against the overall market or a security’s relative strength value, which is derived by comparing the rate of increase of the security’s price over a set period as compared to that of a benchmark index. The Index Provider weights each security according to its adjusted relative strength score, with securities exhibiting greater relative strength and higher liquidity representing a greater weight in the Index. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2015, on a market price basis, the Fund returned 2.53%. On a net asset value (“NAV”) basis, the Fund returned 2.48%. During the same time period, the Index returned 3.16%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance,

on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period.

During this same time period, the S&P 500^® Utilities Index (the “Benchmark Index”) returned 6.09%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 30 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of other indices similar to the Index. The Benchmark Index was selected for its recognition in the marketplace as well as its exposure to the utilities sector.

The performance of the Fund differed from the Benchmark Index in part because the Index employs a proprietary stock selection and weighting methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization. More specifically, relative to the Benchmark Index, the Fund was most overweight in the gas utilities sub-industry and most underweight in the electric utilities sub-industry during the fiscal year ended April 30, 2015. The majority of the Fund’s underperformance relative to the Benchmark Index during the period can be attributed to allocation among the oil & gas storage & transportation sub-industry as well as stock selection within the multi-utilities sub-industry.

For the fiscal year ended April 30, 2015, the electric utilities sub-industry contributed most significantly to the Fund’s return, followed by the alternative carriers (no longer held) and multi-utilities sub-industries, respectively. The oil & gas storage & transportation sub-industry detracted most significantly from the Fund’s return, followed by the independent power producers & energy traders (no longer held) and oil & gas exploration & production sub-industries, respectively.

Positions that contributed most significantly to the Fund’s return included tw telecom Inc., an alternative carriers company (no longer held at fiscal year-end), and American Water Works Co., Inc., a water utilities company (portfolio average weight of 3.39%). Positions that detracted most significantly from the Fund’s return included ONEOK, Inc., an oil & gas storage & transportation company (portfolio average weight of 3.97%), and NRG Energy, Inc., an independent power producers & energy traders company (no longer held at fiscal year-end).

28

PowerShares DWA Utilities Momentum Portfolio (PUI) (continued)

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2015
Multi-Utilities	37.2
Electric Utilities	33.7
Gas Utilities	10.5
Water Utilities	6.1
Oil & Gas Storage & Transportation	5.1
Oil & Gas Exploration & Production	4.4
Integrated Telecommunication Services	2.9
Money Market Fund Plus Other Assets Less Liabilities	0.1
Top Ten Fund Holdings (% of the Fund’s Net Assets) as of April 30, 2015
Security
Edison International	4.5
Duke Energy Corp.	4.4
Sempra Energy	4.3
Wisconsin Energy Corp.	3.8
NiSource, Inc.	3.6
PG&E Corp.	3.6
American Water Works Co., Inc.	3.5
NextEra Energy, Inc.	3.5
Southern Co. (The)	3.4
Xcel Energy, Inc.	3.4
Total	38.0

29

PowerShares DWA Utilities Momentum Portfolio (PUI) (continued)

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

Fund Performance History as of April 30, 2015

	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			Fund Inception†
Index																Average Annualized			Cumulative
Blended-Dorsey Wright Utilities Technical LeadersTM Index††		3.16	%		14.01	%		48.21	%		12.44	%		79.69	%		7.92	%		106.54	%
S&P 500® Utilities Index		6.09			11.70			39.39			12.27			78.35			8.06			109.09
Fund
NAV Return		2.48			13.25			45.25			11.50			72.37			7.12			92.26
Market Price Return		2.53			13.30			45.46			11.49			72.29			7.12			92.41

Fund Inception: October 26, 2005

Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2016. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.79% and the net annual operating expense ratio was indicated as 0.60%. The Financial Highlights section of the Shareholders Report presents the expense ratios based on expenses incurred during the period covered by this report. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market 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.

Blended-Index and Benchmark Index performance results are based upon a hypothetical investment in its constituent securities. Blended-Index and Benchmark returns do not represent Fund returns. An investor cannot invest directly in an index. The Blended-Index and Benchmark Index do 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.

^†  Fund, Blended-Index and Benchmark Index returns are based on the inception date of the Fund.

^††  The Blended-Dorsey Wright Utilities Technical Leaders^TM Index performance is comprised of the performance of the Dynamic Utilities Intellidex^SM Index, the Fund’s previous underlying index, from Fund inception through the conversion date, February 19, 2014, followed by the performance of the Index, starting from the conversion date through April 30, 2015.

30

PNQI	Manager’s Analysis
	PowerShares NASDAQ Internet Portfolio (PNQI)

As an index fund, the PowerShares NASDAQ Internet Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the NASDAQ Internet Index^SM (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks of Internet software and service companies that comprise the Index. These companies include those involved in Internet-related services, including Internet access providers, Internet search engines, web hosting, website design and e-commerce.

The NASDAQ OMX Group, Inc. (the “Index Provider”) compiles, maintains and calculates the Index. Strictly in accordance with its existing guidelines and mandated procedures, the Index Provider selects constituents for the Index, which is designed to track the performance of the largest and most liquid U.S.-listed companies that are involved in Internet-related business. In order to be eligible for inclusion in the Index, in addition to being engaged in Internet-related business, a security must: be listed on NASDAQ, the NYSE or the NYSE MKT; have a minimum market capitalization of $200 million; have a minimum three-month average daily trading volume of 100,000 shares; have a minimum closing price of $3.00; be issued by a company that has not entered into a definitive agreement or other arrangement that would likely result in the security no longer being Index eligible; and may not be issued by a company in bankruptcy proceedings or that has annual financial statements with an audit opinion that is currently withdrawn. The Index Provider weights securities included in the Index according to a modified market capitalization methodology. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.

For the fiscal year ended April 30, 2015, on a market price basis, the Fund returned 17.48%. On a net asset value (“NAV”) basis, the Fund returned 17.30%. During the same time period, the Index returned 17.95%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period.

During this same time period, the NASDAQ-100^® Index (the “Benchmark Index”) returned 24.75%. The Benchmark Index is an unmanaged index weighted by modified market capitalization based on the average performance of approximately 100 securities. The Fund provided this additional comparative benchmark because of its recognition in the marketplace and to help investors better understand how the investment results of the Fund compares to the performance of a broad-based market benchmark.

The performance of the Fund differed from the Benchmark Index in part because the Fund contains a set of companies engaged in Internet-related businesses, whereas the Benchmark Index

consists of the approximately 100 largest non-financial companies listed on the NASDAQ Stock Market.

Relative to the Benchmark Index, the Fund was most overweight in the internet software & services sub-industry and most underweight in the technology hardware storage & peripherals sub-industry industry during the fiscal year ended April 30, 2015. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to the Fund’s allocation to the internet software & services and technology hardware storage & peripherals (no longer held) sub-industries.

For the fiscal year ended April 30, 2015, the internet software & services sub-industry contributed most significantly to the Fund’s return, followed by the internet retail and movies & entertainment (no longer held) sub-industries, respectively. The application software sub-industry detracted most significantly from the Fund’s return, followed by the casinos & gaming and systems software (no longer held) sub-industries, respectively.

Positions that contributed most significantly to the Fund’s return included Amazon.com, Inc., an internet retail company (portfolio average weight of 7.95%), and Netflix, Inc., an internet retail company (portfolio average weight of 4.05%). Positions that detracted most significantly from the Fund’s return included Twitter, Inc., an internet software & services company (portfolio average weight of 0.45%), and Qihoo 360 Technology Co. Ltd. ADR, an internet software & services company (portfolio average weight of 1.54%).

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2015
Internet Software & Services	63.9
Internet Retail	34.2
Application Software	1.3
Alternative Carriers	0.3
Casinos & Gaming	0.1
IT Consulting & Other Services	0.1
Wireless Telecommunication Services	0.1
Money Market Funds Plus Other Assets Less Liabilities	(0.0)

31

PowerShares NASDAQ Internet Portfolio (PNQI) (continued)

Top Ten Fund Holdings (% of the Fund’s Net Assets) as of April 30, 2015
Security
Amazon.com, Inc.	8.6
eBay, Inc.	7.8
Priceline Group, Inc. (The)	7.8
Facebook, Inc., Class A	7.8
Google, Inc., Class C	7.5
Netflix, Inc.	4.6
Baidu, Inc., Class A ADR	3.8
Yahoo!, Inc.	3.7
JD.com, Inc. Class A ADR	3.6
Twitter, Inc.	3.2
Total	58.4

32

PowerShares NASDAQ Internet Portfolio (PNQI) (continued)

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

Fund Performance History as of April 30, 2015

	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			Fund Inception†
Index																Average Annualized			Cumulative
NASDAQ Internet IndexSM		17.95	%		21.31	%		78.50	%		21.52	%		165.05	%		18.02	%		212.89	%
NASDAQ-100® Index		24.75			19.05			68.71			18.52			133.82			13.97			146.04
Fund
NAV Return		17.30			20.75			76.05			20.91			158.37			17.41			201.85
Market Price Return		17.48			20.74			76.00			20.88			158.12			17.14			197.06

Fund Inception: June 12, 2008

Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. According to the Fund’s current prospectus, the expense ratio of 0.60% is expressed as a unitary management fee to cover operating expenses and expenses incurred in connection with managing the portfolio. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market 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 and Benchmark 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 and Benchmark Index do 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.

^†  Fund, Index and Benchmark Index returns are based on the inception date of the Fund.

33

Schedule of Investments^(a)

PowerShares DWA Basic Materials Momentum Portfolio (PYZ)

April 30, 2015

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Aluminum—2.4%
	55,017	Century Aluminum Co.(b)	$	709,169
	14,652	Kaiser Aluminum Corp.		1,177,581
				1,886,750
		Commodity Chemicals—8.5%
	19,549	Cabot Corp.		835,525
	22,110	LyondellBasell Industries NV, Class A		2,288,827
	45,151	Westlake Chemical Corp.		3,520,875
				6,645,227
		Diversified Chemicals—13.5%
	55,963	Dow Chemical Co. (The)		2,854,113
	24,249	E.I. du Pont de Nemours & Co.		1,775,027
	20,741	Eastman Chemical Co.		1,580,879
	37,379	FMC Corp.		2,216,948
	92,858	Huntsman Corp.		2,140,377
				10,567,344
		Diversified Metals & Mining—1.5%
	13,038	Compass Minerals International, Inc.		1,151,647
		Fertilizers & Agricultural Chemicals—6.6%
	8,578	CF Industries Holdings, Inc.		2,465,918
	23,539	Monsanto Co.		2,682,504
				5,148,422
		Forest Products—2.1%
	110,284	Louisiana-Pacific Corp.(b)		1,680,728
		Industrial Gases—10.1%
	17,061	Air Products & Chemicals, Inc.		2,447,059
	37,231	Airgas, Inc.		3,770,756
	13,425	Praxair, Inc.		1,636,910
				7,854,725
		Life Sciences Tools & Services—1.2%
	24,114	Cambrex Corp.(b)		928,148
		Oil & Gas Refining & Marketing—1.7%
	43,303	Green Plains, Inc.		1,348,455
		Paper Products—8.4%
	68,407	International Paper Co.		3,674,824
	57,690	KapStone Paper and Packaging Corp.		1,612,436
	24,215	P.H. Glatfelter Co.		600,532
	42,213	Resolute Forest Products, Inc.(b)		650,924
				6,538,716
		Specialized REITs—2.0%
	49,679	Weyerhaeuser Co. REIT		1,565,385
		Specialty Chemicals—41.1%
	16,746	A. Schulman, Inc.		710,868
	32,087	Ashland, Inc.		4,054,513
	30,146	Chemtura Corp.(b)		908,299
	54,214	Cytec Industries, Inc.		2,997,492
	16,514	Ecolab, Inc.		1,849,238
	87,922	Ferro Corp.(b)		1,186,068
	17,980	H.B. Fuller Co.		751,024
	17,027	Innophos Holdings, Inc.		899,707
	24,983	Innospec, Inc.		1,091,757

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Specialty Chemicals (continued)
	10,547	International Flavors & Fragrances, Inc.	$	1,210,268
	9,142	Minerals Technologies, Inc.		619,188
	3,759	NewMarket Corp.		1,679,897
	47,516	PolyOne Corp.		1,855,500
	12,988	PPG Industries, Inc.		2,877,621
	11,830	Quaker Chemical Corp.		984,493
	27,828	RPM International, Inc.		1,322,943
	21,334	Sensient Technologies Corp.		1,394,390
	33,169	Valspar Corp. (The)		2,690,006
	30,739	W.R. Grace & Co.(b)		2,973,076
				32,056,348
		Steel—0.9%
	26,893	Worthington Industries, Inc.		726,918
		Total Common Stocks and Other Equity Interests (Cost $74,017,821)		78,098,813
		Money Market Fund—0.1%
	94,342	Invesco Premier Portfolio—Institutional Class(c) (Cost $94,342)		94,342
		Total Investments (Cost $74,112,163)—100.1%		78,193,155
		Other assets less liabilities—(0.1)%		(111,057	)
		Net Assets—100.0%	$	78,082,098

Investment Abbreviations:

REIT—Real Estate Investment Trust

Notes to Schedule of Investments:

^(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.

^(b)  Non-income producing security.

^(c)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

34

Schedule of Investments^(a)

PowerShares DWA Consumer Cyclicals Momentum Portfolio (PEZ)

April 30, 2015

Number of Shares			Value
		Common Stocks—100.0%
		Airlines—10.0%
	55,715	Alaska Air Group, Inc.	$	3,569,103
	55,681	Delta Air Lines, Inc.		2,485,600
	59,026	Southwest Airlines Co.		2,394,095
	18,103	Spirit Airlines, Inc.(b)		1,239,512
				9,688,310
		Apparel Retail—8.5%
	38,373	Foot Locker, Inc.		2,281,275
	35,818	L Brands, Inc.		3,200,696
	27,081	Ross Stores, Inc.		2,677,769
				8,159,740
		Apparel, Accessories & Luxury Goods—11.7%
	12,670	G-III Apparel Group Ltd.(b)		1,408,650
	71,200	Hanesbrands, Inc.		2,212,896
	47,785	Under Armour, Inc., Class A(b)		3,705,727
	55,053	VF Corp.		3,987,489
				11,314,762
		Automotive Retail—10.3%
	17,163	Asbury Automotive Group, Inc.(b)		1,442,207
	3,837	AutoZone, Inc.(b)		2,580,996
	26,996	O’Reilly Automotive, Inc.(b)		5,880,539
				9,903,742
		Broadcasting—2.3%
	37,308	Nexstar Broadcasting Group, Inc., Class A		2,181,026
		Cable & Satellite—2.2%
	11,173	Charter Communications, Inc., Class A(b)		2,090,021
		Department Stores—7.8%
	40,498	Dillard’s, Inc., Class A		5,329,132
	34,292	Macy’s, Inc.		2,216,292
				7,545,424
		Drug Retail—3.7%
	460,878	Rite Aid Corp.(b)		3,553,369
		Footwear—4.8%
	28,650	NIKE, Inc., Class B		2,831,766
	20,470	Skechers U.S.A., Inc., Class A(b)		1,840,662
				4,672,428
		Home Entertainment Software—2.5%
	40,841	Electronic Arts, Inc.(b)		2,372,454
		Homefurnishing Retail—2.9%
	38,337	Williams-Sonoma, Inc.		2,818,920
		Hotels, Resorts & Cruise Lines—4.3%
	48,522	Wyndham Worldwide Corp.		4,143,779
		Industrial Machinery—1.6%
	15,126	Middleby Corp. (The)(b)		1,532,869
		Internet Retail—2.2%
	22,373	Expedia, Inc., Class A		2,108,208
		Leisure Products—3.1%
	21,978	Polaris Industries, Inc.		3,010,107
		Movies & Entertainment—0.8%
	26,715	Carmike Cinemas, Inc.(b)		806,259

Number of Shares			Value
		Common Stocks (continued)
		Restaurants—13.9%
	47,394	Brinker International, Inc.	$	2,624,206
	47,893	Domino’s Pizza, Inc.		5,165,260
	22,132	Fiesta Restaurant Group, Inc.(b)		1,118,773
	18,390	Popeyes Louisiana Kitchen, Inc.(b)		1,023,955
	37,090	Sonic Corp.		1,062,628
	49,138	Starbucks Corp.		2,436,262
				13,431,084
		Specialty Stores—7.4%
	28,652	Signet Jewelers Ltd.		3,843,093
	38,408	Tractor Supply Co.		3,305,392
				7,148,485
		Total Common Stocks (Cost $89,857,294)		96,480,987
		Money Market Fund—0.1%
	99,851	Invesco Premier Portfolio—Institutional Class(c) (Cost $99,851)		99,851
		Total Investments (Cost $89,957,145)—100.1%		96,580,838
		Other assets less liabilities—(0.1)%		(117,955	)
		Net Assets—100.0%	$	96,462,883

Notes to Schedule of Investments:

^(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.

^(b)  Non-income producing security.

^(c)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

35

Schedule of Investments^(a)

PowerShares DWA Consumer Staples Momentum Portfolio (PSL)

April 30, 2015

Number of Shares			Value
		Common Stocks—100.0%
		Distillers & Vintners—6.9%
	32,225	Brown-Forman Corp., Class B	$	2,907,662
	33,370	Constellation Brands, Inc., Class A(b)		3,868,918
				6,776,580
		Distributors—2.2%
	40,588	Core-Mark Holding Co., Inc.		2,139,393
		Education Services—4.3%
	44,851	Bright Horizons Family Solutions, Inc.(b)		2,255,108
	36,421	Capella Education Co.		1,967,827
				4,222,935
		Environmental & Facilities Services—3.0%
	116,561	Rollins, Inc.		2,890,713
		Food Distributors—2.6%
	36,899	United Natural Foods, Inc.(b)		2,489,207
		Food Retail—11.6%
	35,216	Casey’s General Stores, Inc.		2,894,051
	513,805	Fairway Group Holdings Corp., Class A(b)		2,728,304
	46,102	Kroger Co. (The)		3,176,889
	293,457	SUPERVALU, Inc.(b)		2,579,487
				11,378,731
		Health Care Facilities—2.6%
	49,838	VCA, Inc.(b)		2,540,243
		Health Care Services—2.5%
	21,578	Chemed Corp.		2,486,865
		Household Appliances—2.7%
	30,158	Helen of Troy Ltd.(b)		2,642,142
		Household Products—7.1%
	51,045	Church & Dwight Co., Inc.		4,143,322
	30,474	Spectrum Brands Holdings, Inc.		2,786,238
				6,929,560
		Housewares & Specialties—7.5%
	79,793	Jarden Corp.(b)		4,083,806
	84,711	Newell Rubbermaid, Inc.		3,230,030
				7,313,836
		Industrial Machinery—3.1%
	20,127	Snap-on, Inc.		3,009,993
		Internet Software & Services—2.6%
	41,775	Stamps.com, Inc.(b)		2,585,455
		Packaged Foods & Meats—18.6%
	58,863	Hain Celestial Group, Inc. (The)(b)		3,545,907
	47,187	Hormel Foods Corp.		2,564,613
	28,050	J & J Snack Foods Corp.		2,926,457
	44,098	Kraft Foods Group, Inc.		3,737,306
	64,715	Pinnacle Foods, Inc.		2,624,193
	63,685	WhiteWave Foods Co. (The)(b)		2,800,229
				18,198,705
		Soft Drinks—7.8%
	47,066	Dr Pepper Snapple Group, Inc.		3,510,182
	30,121	Monster Beverage Corp.(b)		4,129,891
				7,640,073

Number of Shares			Value
		Common Stocks (continued)
		Specialized Consumer Services—3.4%
	118,317	Service Corp. International	$	3,275,015
		Tobacco—8.7%
	87,773	Altria Group, Inc.		4,393,038
	55,769	Reynolds American, Inc.		4,087,868
				8,480,906
		Trucking—2.8%
	8,381	AMERCO		2,699,017
		Total Common Stocks (Cost $90,892,260)		97,699,369
		Money Market Fund—0.1%
	138,857	Invesco Premier Portfolio—Institutional Class(c) (Cost $138,857)		138,857
		Total Investments (Cost $91,031,117)—100.1%		97,838,226
		Other assets less liabilities—(0.1)%		(124,814	)
		Net Assets—100.0%	$	97,713,412

Notes to Schedule of Investments:

^(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.

^(b)  Non-income producing security.

^(c)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

36

Schedule of Investments^(a)

PowerShares DWA Energy Momentum Portfolio (PXI)

April 30, 2015

Number of Shares			Value
		Common Stocks and Other Equity Interests—99.9%
		Integrated Oil & Gas—7.3%
	41,631	Chevron Corp.	$	4,623,539
	43,977	Exxon Mobil Corp.		3,842,270
	62,443	Occidental Petroleum Corp.		5,001,684
				13,467,493
		Oil & Gas Equipment & Services—11.0%
	48,864	Bristow Group, Inc.		3,035,920
	39,725	Dril-Quip, Inc.(b)		3,166,877
	110,684	Era Group, Inc.(b)		2,454,971
	97,769	Exterran Holdings, Inc.		3,624,297
	75,067	Halliburton Co.		3,674,530
	77,246	Oceaneering International, Inc.		4,257,027
				20,213,622
		Oil & Gas Exploration & Production—42.5%
	53,945	Anadarko Petroleum Corp.		5,076,224
	79,327	Carrizo Oil & Gas, Inc.(b)		4,420,894
	44,565	Cimarex Energy Co.		5,543,886
	75,635	Concho Resources, Inc.(b)		9,579,929
	77,431	ConocoPhillips		5,259,114
	61,662	Diamondback Energy, Inc.(b)		5,091,431
	54,113	EOG Resources, Inc.		5,354,481
	212,357	Laredo Petroleum, Inc.(b)		3,355,241
	120,339	Marathon Oil Corp.		3,742,543
	132,450	Newfield Exploration Co.(b)		5,197,338
	66,071	PDC Energy, Inc.(b)		3,748,869
	487,450	Penn Virginia Corp.(b)		3,256,166
	46,427	Pioneer Natural Resources Co.		8,021,657
	214,352	Sanchez Energy Corp.(b)		3,148,831
	243,139	Synergy Resources Corp.(b)		2,912,805
	107,008	Whiting Petroleum Corp.(b)		4,056,673
				77,766,082
		Oil & Gas Refining & Marketing—22.3%
	219,485	Alon USA Energy, Inc.		3,531,514
	120,035	Delek US Holdings, Inc.		4,431,692
	56,424	Marathon Petroleum Corp.		5,561,714
	99,866	PBF Energy, Inc., Class A		2,834,197
	68,480	Phillips 66		5,431,149
	83,172	Tesoro Corp.		7,138,653
	102,369	Valero Energy Corp.		5,824,796
	137,330	Western Refining, Inc.		6,049,386
				40,803,101
		Oil & Gas Storage & Transportation—16.8%
	106,562	Cheniere Energy, Inc.(b)		8,150,927
	101,419	EnLink Midstream LLC		3,564,878
	109,288	Kinder Morgan, Inc.		4,693,920
	54,324	SemGroup Corp., Class A		4,573,537
	33,807	Targa Resources Corp.		3,548,721
	123,578	Williams Cos., Inc. (The)		6,325,958
				30,857,941
		Total Common Stocks and Other Equity Interests (Cost $170,461,642)		183,108,239

Number of Shares			Value
		Money Market Fund—0.2%
	298,040	Invesco Premier Portfolio—Institutional Class(c) (Cost $298,040)	$	298,040
		Total Investments (Cost $170,759,682)—100.1%		183,406,279
		Other assets less liabilities—(0.1)%		(228,596	)
		Net Assets—100.0%	$	183,177,683

Notes to Schedule of Investments:

^(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.

^(b)  Non-income producing security.

^(c)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

37

Schedule of Investments^(a)

PowerShares DWA Financial Momentum Portfolio (PFI)

April 30, 2015

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Asset Management & Custody Banks—7.0%
	8,574	Ameriprise Financial, Inc.	$	1,074,151
	26,911	Invesco Ltd.(b)		1,114,653
	11,445	SEI Investments Co.		522,579
				2,711,383
		Data Processing & Outsourced Services—3.6%
	11,096	Broadridge Financial Solutions, Inc.		598,296
	19,815	Total System Services, Inc.		783,882
				1,382,178
		Diversified Banks—2.1%
	14,476	Wells Fargo & Co.		797,628
		Diversified Capital Markets—1.3%
	13,264	HFF, Inc., Class A		519,816
		Diversified REITs—2.7%
	54,365	NorthStar Realty Finance Corp. REIT		1,019,887
		Health Care REITs—11.5%
	23,282	Health Care REIT, Inc. REIT		1,676,770
	7,226	LTC Properties, Inc. REIT		314,042
	7,008	National Health Investors, Inc. REIT		467,574
	54,237	OMEGA Healthcare Investors, Inc. REIT		1,957,413
				4,415,799
		Hotel & Resort REITs—3.8%
	26,106	FelCor Lodging Trust, Inc. REIT		290,037
	14,172	Hospitality Properties Trust REIT		426,294
	62,393	Strategic Hotels & Resorts, Inc. REIT(c)		729,998
				1,446,329
		Industrial REITs—1.2%
	22,721	First Industrial Realty Trust, Inc. REIT		448,285
		Internet Software & Services—2.5%
	5,942	Envestnet, Inc.(c)		304,587
	6,700	Zillow Group, Inc., Class A(c)		654,188
				958,775
		Life & Health Insurance—1.1%
	15,432	American Equity Investment Life Holding Co.		415,892
		Multi-line Insurance—3.2%
	15,363	HCC Insurance Holdings, Inc.		875,077
	10,059	Horace Mann Educators Corp.		341,704
				1,216,781
		Office REITs—4.1%
	13,759	Highwoods Properties, Inc. REIT		592,188
	8,123	SL Green Realty Corp. REIT		993,930
				1,586,118
		Property & Casualty Insurance—2.2%
	12,309	Allstate Corp. (The)		857,445
		Real Estate Services—3.0%
	30,368	CBRE Group, Inc., Class A(c)		1,164,309
		Regional Banks—8.1%
	9,942	Bank of the Ozarks, Inc.		385,352
	12,710	East West Bancorp, Inc.		515,899
	74,341	Huntington Bancshares, Inc.		807,343
	7,382	Pinnacle Financial Partners, Inc.		351,752

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Regional Banks (continued)
	15,666	Webster Financial Corp.	$	561,313
	15,580	Western Alliance Bancorp(c)		481,734
				3,103,393
		Residential REITs—6.5%
	18,509	Camden Property Trust REIT		1,389,656
	10,928	Equity Lifestyle Properties, Inc. REIT		577,217
	8,291	Sun Communities, Inc. REIT		514,539
				2,481,412
		Retail REITs—19.5%
	12,886	Federal Realty Investment Trust REIT		1,722,472
	15,776	Macerich Co. (The) REIT		1,289,846
	27,157	Realty Income Corp. REIT		1,275,564
	12,199	Regency Centers Corp. REIT		765,853
	10,763	Simon Property Group, Inc. REIT		1,953,377
	14,862	Weingarten Realty Investors REIT		486,879
				7,493,991
		Specialized Finance—4.6%
	10,590	MarketAxess Holdings, Inc.		909,151
	8,136	Moody’s Corp.		874,783
				1,783,934
		Specialized REITs—9.6%
	24,762	CubeSmart REIT		571,260
	18,838	Extra Space Storage, Inc. REIT		1,241,989
	10,066	Public Storage REIT		1,891,502
				3,704,751
		Thrifts & Mortgage Finance—2.4%
	10,020	BofI Holding, Inc.(c)		919,936
		Total Common Stocks and Other Equity Interests (Cost $36,822,385)		38,428,042
		Money Market Fund—0.2%
	78,415	Invesco Premier Portfolio—Institutional Class(d) (Cost $78,415)		78,415
		Total Investments (Cost $36,900,800)—100.2%		38,506,457
		Other assets less liabilities—(0.2)%		(59,860	)
		Net Assets—100.0%	$	38,446,597

Investment Abbreviations:

REIT—Real Estate Investment Trust

Notes to Schedule of Investments:

^(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.

^(b)  Affiliated company. The Fund’s Adviser is a wholly-owned subsidiary of Invesco Ltd. and therefore, Invesco Ltd. is considered to be affiliated. See Note 4.

^(c)  Non-income producing security.

^(d)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

38

Schedule of Investments^(a)

PowerShares DWA Healthcare Momentum Portfolio (PTH)

April 30, 2015

Number of Shares			Value
		Common Stocks—100.0%
		Biotechnology—45.9%
	65,693	Alkermes PLC(b)	$	3,637,422
	21,184	Alnylam Pharmaceuticals, Inc.(b)		2,158,014
	42,348	Anacor Pharmaceuticals, Inc.(b)		2,231,316
	630,874	ARIAD Pharmaceuticals, Inc.(b)		5,469,678
	15,777	Biogen, Inc.(b)		5,899,494
	31,202	BioMarin Pharmaceutical, Inc.(b)		3,496,184
	35,370	Celgene Corp.(b)		3,822,082
	145,691	Celldex Therapeutics, Inc.(b)		3,496,584
	152,443	Dyax Corp.(b)		3,644,912
	64,688	Incyte Corp.(b)		6,285,086
	29,067	Insys Therapeutics, Inc.(b)		1,528,052
	6,242	Intercept Pharmaceuticals, Inc.(b)		1,578,040
	70,095	Isis Pharmaceuticals, Inc.(b)		3,975,788
	67,488	Medivation, Inc.(b)		8,148,501
	214,954	Merrimack Pharmaceuticals, Inc.(b)		2,385,989
	84,772	Neurocrine Biosciences, Inc.(b)		2,889,878
	36,774	Newlink Genetics Corp.(b)		1,640,120
	355,939	Novavax, Inc.(b)		2,751,409
	19,942	Regeneron Pharmaceuticals, Inc.(b)		9,122,667
	44,396	TESARO, Inc.(b)		2,418,250
	23,393	United Therapeutics Corp.(b)		3,735,628
	207,047	ZIOPHARM Oncology, Inc.(b)		1,824,084
				82,139,178
		Health Care Equipment—8.4%
	44,125	ABIOMED, Inc.(b)		2,789,583
	62,082	DexCom, Inc.(b)		4,194,881
	50,973	IDEXX Laboratories, Inc.(b)		6,390,485
	45,033	Natus Medical, Inc.(b)		1,698,194
				15,073,143
		Health Care Facilities—4.5%
	53,959	Acadia Healthcare Co., Inc.(b)		3,696,192
	57,929	HCA Holdings, Inc.(b)		4,287,325
				7,983,517
		Health Care Supplies—5.2%
	43,333	Cooper Cos., Inc. (The)		7,716,307
	63,306	Spectranetics Corp. (The)(b)		1,623,799
				9,340,106
		Life Sciences Tools & Services—5.0%
	140,705	Affymetrix, Inc.(b)		1,706,752
	36,040	Fluidigm Corp.(b)		1,350,058
	32,155	Illumina, Inc.(b)		5,924,559
				8,981,369
		Managed Health Care—12.8%
	34,873	Aetna, Inc.		3,726,878
	52,086	Centene Corp.(b)		3,228,811
	55,522	Cigna Corp.		6,920,262
	28,737	Humana, Inc.		4,758,847
	38,037	UnitedHealth Group, Inc.		4,237,322
				22,872,120
		Pharmaceuticals—18.2%
	27,351	Actavis PLC(b)		7,736,504
	186,853	Chelsea Therapeutics International Ltd.(b)		14,948
	87,996	Depomed, Inc.(b)		2,046,787
	45,001	Endo International PLC(b)		3,783,009

Number of Shares			Value
		Common Stocks (continued)
		Pharmaceuticals (continued)
	79,824	Horizon Pharma PLC(b)	$	2,244,651
	51,839	Impax Laboratories, Inc.(b)		2,346,233
	39,082	Lannett Co., Inc.(b)		2,247,215
	97,566	Mylan NV(b)		7,050,119
	98,132	Omeros Corp.(b)		1,974,416
	78,331	Prestige Brands Holdings, Inc.(b)		3,074,492
				32,518,374
		Total Common Stocks (Cost $163,506,879)		178,907,807
		Money Market Fund—0.1%
	116,298	Invesco Premier Portfolio—Institutional Class(c) (Cost $116,298)		116,298
		Total Investments (Cost $163,623,177)—100.1%		179,024,105
		Other assets less liabilities—(0.1)%		(221,658	)
		Net Assets—100.0%	$	178,802,447

Notes to Schedule of Investments:

^(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.

^(b)  Non-income producing security.

^(c)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

39

Schedule of Investments^(a)

PowerShares DWA Industrials Momentum Portfolio (PRN)

April 30, 2015

Number of Shares			Value
		Common Stocks—100.0%
		Aerospace & Defense—18.2%
	70,739	Aerojet Rocketdyne Holdings, Inc.(b)	$	1,390,729
	12,410	Huntington Ingalls Industries, Inc.		1,633,032
	26,406	Lockheed Martin Corp.		4,927,360
	24,551	Northrop Grumman Corp.		3,781,836
	23,181	Raytheon Co.		2,410,824
	24,695	Spirit Aerosystems Holdings, Inc., Class A(b)		1,256,728
	23,687	TransDigm Group, Inc.		5,024,723
				20,425,232
		Air Freight & Logistics—1.0%
	23,936	XPO Logistics, Inc.(b)		1,160,896
		Application Software—1.3%
	16,160	Fair Isaac Corp.		1,429,514
		Building Products—5.4%
	33,451	A.O. Smith Corp.		2,137,519
	18,863	American Woodmark Corp.(b)		956,354
	23,746	Apogee Enterprises, Inc.		1,249,514
	36,855	Trex Co., Inc.(b)		1,729,237
				6,072,624
		Commercial Printing—1.8%
	31,438	Deluxe Corp.		2,035,611
		Construction & Farm Machinery & Heavy Trucks—1.2%
	14,174	Wabtec Corp.		1,333,065
		Construction Materials—2.4%
	156,066	Headwaters, Inc.(b)		2,743,640
		Consumer Electronics—0.7%
	94,265	ZAGG, Inc.(b)		785,227
		Data Processing & Outsourced Services—3.2%
	22,379	FleetCor Technologies, Inc.(b)		3,600,557
		Distributors—1.0%
	17,493	Pool Corp.		1,135,121
		Diversified Support Services—2.3%
	85,665	Healthcare Services Group, Inc.		2,593,080
		Electrical Components & Equipment—1.3%
	8,872	Acuity Brands, Inc.		1,481,180
		Electronic Equipment & Instruments—1.7%
	43,768	Cognex Corp.(b)		1,964,746
		Electronic Manufacturing Services—1.0%
	25,943	Methode Electronics, Inc.		1,101,540
		Health Care Services—2.0%
	49,101	AMN Healthcare Services, Inc.(b)		1,119,994
	26,293	ExamWorks Group, Inc.(b)		1,076,698
				2,196,692
		Human Resource & Employment Services—2.3%
	21,260	Barrett Business Services, Inc.		945,432
	32,296	WageWorks, Inc.(b)		1,627,719
				2,573,151
		Industrial Conglomerates—2.0%
	14,306	3M Co.		2,237,315
		Industrial Machinery—7.4%
	26,217	IDEX Corp.		1,966,537
	38,689	Ingersoll-Rand PLC		2,547,284

Number of Shares			Value
		Common Stocks (continued)
		Industrial Machinery (continued)
	155,726	Mueller Water Products, Inc., Class A	$	1,457,595
	23,752	Pall Corp.		2,311,545
				8,282,961
		Internet Software & Services—1.5%
	8,466	CoStar Group, Inc.(b)		1,730,704
		IT Consulting & Other Services—3.8%
	32,078	Booz Allen Hamilton Holding Corp., Class A		882,145
	28,288	Gartner, Inc.(b)		2,347,338
	21,633	iGATE Corp.(b)		1,028,866
				4,258,349
		Life Sciences Tools & Services—3.3%
	11,705	Mettler-Toledo International, Inc.(b)		3,710,602
		Paper Packaging—4.6%
	181,199	Graphic Packaging Holding Co.		2,554,906
	38,229	Packaging Corp. of America		2,645,064
				5,199,970
		Railroads—14.7%
	134,893	CSX Corp.		4,868,289
	27,870	Kansas City Southern		2,856,396
	41,681	Norfolk Southern Corp.		4,203,529
	43,240	Union Pacific Corp.		4,593,385
				16,521,599
		Research & Consulting Services—4.1%
	36,107	Dun & Bradstreet Corp. (The)		4,609,781
		Specialty Chemicals—4.8%
	19,519	Sherwin-Williams Co. (The)		5,426,282
		Trading Companies & Distributors—2.3%
	40,255	H&E Equipment Services, Inc.		995,103
	13,247	Watsco, Inc.		1,593,482
				2,588,585
		Trucking—4.7%
	51,440	ArcBest Corp.		1,836,408
	32,106	Old Dominion Freight Line, Inc.(b)		2,283,700
	46,338	Swift Transportation Co., Class A(b)		1,121,379
				5,241,487
		Total Common Stocks (Cost $106,004,803)		112,439,511
		Money Market Fund—0.1%
	111,650	Invesco Premier Portfolio—Institutional Class(c) (Cost $111,650)		111,650
		Total Investments (Cost $106,116,453)—100.1%		112,551,161
		Other assets less liabilities—(0.1)%		(137,340	)
		Net Assets—100.0%	$	112,413,821

Notes to Schedule of Investments:

^(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.

^(b)  Non-income producing security.

^(c)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

40

Schedule of Investments^(a)

PowerShares DWA Technology Momentum Portfolio (PTF)

April 30, 2015

Number of Shares			Value
		Common Stocks—100.0%
		Alternative Carriers—3.5%
	25,838	Cogent Communications Holdings, Inc.	$	904,072
	24,540	Level 3 Communications, Inc.(b)		1,372,767
				2,276,839
		Application Software—23.7%
	16,924	Adobe Systems, Inc.(b)		1,287,240
	34,926	Ebix, Inc.		953,131
	34,759	Ellie Mae, Inc.(b)		1,911,745
	19,983	Guidewire Software, Inc.(b)		998,151
	33,268	Intuit, Inc.		3,337,778
	31,079	Manhattan Associates, Inc.(b)		1,633,512
	27,017	SolarWinds, Inc.(b)		1,317,889
	18,157	SS&C Technologies Holdings, Inc.		1,092,507
	10,944	Tyler Technologies, Inc.(b)		1,334,621
	8,769	Ultimate Software Group, Inc. (The)(b)		1,457,583
				15,324,157
		Communications Equipment—6.3%
	110,738	Brocade Communications Systems, Inc.		1,251,340
	61,191	Infinera Corp.(b)		1,150,391
	11,331	Palo Alto Networks, Inc.(b)		1,673,815
				4,075,546
		Data Processing & Outsourced Services—1.7%
	16,036	Jack Henry & Associates, Inc.		1,066,554
		Electronic Components—8.1%
	74,133	Amphenol Corp., Class A		4,104,744
	13,603	Belden, Inc.		1,141,972
				5,246,716
		Electronic Equipment & Instruments—1.6%
	10,930	Zebra Technologies Corp., Class A(b)		1,006,434
		Health Care Technology—2.9%
	26,387	Cerner Corp.(b)		1,894,851
		Internet Software & Services—7.2%
	20,661	Facebook, Inc., Class A(b)		1,627,467
	14,720	j2 Global, Inc.		1,021,126
	15,843	LogMeIn, Inc.(b)		1,016,804
	14,947	SPS Commerce, Inc.(b)		975,441
				4,640,838
		IT Consulting & Other Services—3.6%
	25,166	Cognizant Technology Solutions Corp., Class A(b)		1,473,217
	21,966	Virtusa Corp.(b)		874,247
				2,347,464
		Semiconductor Equipment—1.2%
	21,135	Tessera Technologies, Inc.		763,185
		Semiconductors—17.0%
	16,104	Ambarella, Inc.(b)		1,178,008
	12,680	Avago Technologies Ltd. (Singapore)		1,482,038
	40,297	Cirrus Logic, Inc.(b)		1,361,233
	56,225	Integrated Device Technology, Inc.(b)		1,022,733
	22,011	Monolithic Power Systems, Inc.		1,140,830
	34,843	Skyworks Solutions, Inc.		3,214,267
	18,531	Synaptics, Inc.(b)		1,569,946
				10,969,055

Number of Shares			Value
		Common Stocks (continued)
		Systems Software—5.5%
	14,890	NetSuite, Inc.(b)	$	1,423,037
	15,061	Proofpoint, Inc.(b)		812,993
	18,023	ServiceNow, Inc.(b)		1,349,202
				3,585,232
		Technology Distributors—1.5%
	12,803	SYNNEX Corp.		979,430
		Technology Hardware, Storage & Peripherals—11.4%
	36,348	Apple, Inc.		4,548,952
	40,445	Hewlett-Packard Co.		1,333,472
	15,160	Western Digital Corp.		1,481,738
				7,364,162
		Wireless Telecommunication Services—4.8%
	14,893	SBA Communications Corp., Class A(b)		1,724,907
	39,574	T-Mobile US, Inc.(b)		1,347,099
				3,072,006
		Total Common Stocks (Cost $57,507,743)		64,612,469
		Money Market Fund—0.2%
	98,758	Invesco Premier Portfolio—Institutional Class(c) (Cost $98,758)		98,758
		Total Investments (Cost $57,606,501)—100.2%		64,711,227
		Other assets less liabilities—(0.2)%		(123,498	)
		Net Assets—100.0%	$	64,587,729

Notes to Schedule of Investments:

^(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.

^(b)  Non-income producing security.

^(c)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

41

Schedule of Investments^(a)

PowerShares DWA Utilities Momentum Portfolio (PUI)

April 30, 2015

Number of Shares			Value
		Common Stocks—99.9%
		Electric Utilities—33.7%
	19,904	Duke Energy Corp.	$	1,543,953
	25,899	Edison International		1,578,285
	20,435	Eversource Energy		996,411
	10,209	IDACORP, Inc.		615,909
	21,976	ITC Holdings Corp.		791,136
	12,000	NextEra Energy, Inc.		1,211,160
	16,994	OGE Energy Corp.		555,364
	10,325	Pinnacle West Capital Corp.		631,890
	26,764	PNM Resources, Inc.		743,504
	27,153	Southern Co. (The)		1,202,878
	18,545	Westar Energy, Inc.		698,219
	35,048	Xcel Energy, Inc.		1,188,478
				11,757,187
		Gas Utilities—10.5%
	14,935	AGL Resources, Inc.		750,782
	14,316	Atmos Energy Corp.		773,064
	19,459	New Jersey Resources Corp.		593,694
	19,620	Questar Corp.		459,893
	18,586	UGI Corp.		646,979
	8,102	WGL Holdings, Inc.		445,691
				3,670,103
		Integrated Telecommunication Services—2.9%
	146,035	Frontier Communications Corp.		1,001,800
		Multi-Utilities—37.2%
	10,696	Alliant Energy Corp.		646,787
	8,853	Black Hills Corp.		436,364
	33,520	CenterPoint Energy, Inc.		702,914
	34,900	CMS Energy Corp.		1,184,157
	9,860	Consolidated Edison, Inc.		606,883
	15,827	Dominion Resources, Inc.		1,134,479
	13,359	DTE Energy Co.		1,063,777
	29,069	NiSource, Inc.		1,262,176
	10,772	NorthWestern Corp.		561,114
	23,507	PG&E Corp.		1,243,991
	11,772	SCANA Corp.		623,681
	14,294	Sempra Energy		1,517,594
	15,646	Vectren Corp.		675,438
	26,741	Wisconsin Energy Corp.		1,313,518
				12,972,873
		Oil & Gas Exploration & Production—4.4%
	11,730	Energen Corp.		834,824
	7,964	EQT Corp.		716,282
				1,551,106
		Oil & Gas Storage & Transportation—5.1%
	23,936	ONEOK, Inc.		1,151,322
	17,126	Spectra Energy Corp.		637,943
				1,789,265
		Water Utilities—6.1%
	10,994	American States Water Co.		422,059
	22,690	American Water Works Co., Inc.		1,237,059
	17,418	Aqua America, Inc.		467,151
				2,126,269
		Total Common Stocks (Cost $32,464,386)		34,868,603

Number of Shares			Value
		Money Market Fund—0.2%
	71,483	Invesco Premier Portfolio—Institutional Class(b) (Cost $71,483)	$	71,483
		Total Investments (Cost $32,535,869)—100.1%		34,940,086
		Other assets less liabilities—(0.1)%		(46,665	)
		Net Assets—100.0%	$	34,893,421

Notes to Schedule of Investments:

^(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.

^(b)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

42

Schedule of Investments^(a)

PowerShares NASDAQ Internet Portfolio (PNQI)

April 30, 2015

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Alternative Carriers—0.3%
	19,576	Cogent Communications Holdings, Inc.	$	684,964
		Application Software—1.3%
	33,496	NQ Mobile, Inc. Class A ADR (China)(b)(c)		128,625
	51,526	Open Text Corp. (Canada)		2,606,185
				2,734,810
		Casinos & Gaming—0.1%
	9,915	500.com Ltd., Class A ADR (China)(b)(c)		177,578
		Internet Retail—34.2%
	11,785	1-800-FLOWERS.COM, Inc., Class A(c)		124,567
	44,424	Amazon.com, Inc.(c)		18,737,155
	4,999	Blue Nile, Inc.(c)		136,023
	186,215	Cnova NV (Netherlands)(b)(c)		1,052,115
	63,758	Ctrip.com International Ltd. ADR (China)(c)		4,060,109
	48,071	Expedia, Inc., Class A		4,529,730
	12,318	FTD Cos., Inc.(c)		351,556
	283,969	Groupon, Inc., Class A(c)		1,965,065
	232,171	JD.com, Inc. Class A ADR (China)(c)		7,791,659
	13,484	Lands’ End, Inc.(c)		396,160
	29,875	Liberty TripAdvisor Holdings, Inc., Class A(c)		887,586
	17,587	MakeMyTrip Ltd. (India)(c)		372,493
	17,781	Netflix, Inc.(c)		9,895,126
	12,141	Nutrisystem, Inc.		231,286
	10,143	Overstock.com, Inc.(c)		217,770
	8,550	PetMed Express, Inc.(b)		135,347
	13,648	Priceline Group, Inc. (The)(c)		16,893,631
	19,925	Qunar Cayman Islands Ltd. Class B ADR (China)(b)(c)		933,088
	15,930	Shutterfly, Inc.(c)		713,027
	54,910	TripAdvisor, Inc., Class A(c)		4,419,706
	28,839	zulily, Inc., Class A(b)(c)		359,478
				74,202,677
		Internet Software & Services—63.9%
	20,026	21Vianet Group, Inc., Class A ADR (China)(b)(c)		411,935
	17,124	Actua Corp.(c)		247,784
	75,110	Akamai Technologies, Inc.(c)		5,541,616
	24,692	Angie’s List, Inc.(b)(c)		144,942
	33,089	AOL, Inc.(c)		1,320,251
	16,850	Autohome, Inc., Class A ADR (China)(b)(c)		860,024
	41,443	Baidu, Inc., Class A ADR (China)(c)		8,300,204
	44,068	Bankrate, Inc.(c)		546,443
	33,181	Bazaarvoice, Inc.(b)(c)		178,514
	12,009	Benefitfocus, Inc.(b)(c)		414,911
	17,319	Blucora, Inc.(c)		236,751
	13,486	Borderfree, Inc.(c)		85,232
	13,618	Brightcove, Inc.(c)		94,237
	11,486	Carbonite, Inc.(c)		117,617
	13,763	Cimpress NV(c)		1,155,266
	17,095	comScore, Inc.(c)		895,094
	13,559	Constant Contact, Inc.(c)		472,531
	22,737	Cornerstone OnDemand, Inc.(c)		650,960
	13,635	CoStar Group, Inc.(c)		2,787,403
	19,421	Criteo SA ADR (France)(c)		805,195
	22,940	Dealertrack Technologies, Inc.(c)		901,771
	15,322	Demandware, Inc.(c)		943,835

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Internet Software & Services (continued)
	22,793	DHI Group, Inc.(c)	$	173,227
	43,169	EarthLink Holdings Corp.		204,189
	291,628	eBay, Inc.(c)		16,990,247
	55,851	Endurance International Group Holdings, Inc.(b)(c)		1,024,307
	14,474	Envestnet, Inc.(c)		741,937
	23,180	Equinix, Inc. REIT		5,932,457
	213,856	Facebook, Inc., Class A(c)		16,845,437
	35,999	Gogo, Inc.(b)(c)		761,019
	30,327	Google, Inc., Class C(c)		16,295,910
	39,890	HomeAway, Inc.(c)		1,114,926
	33,067	IAC/InterActiveCorp.		2,308,738
	22,986	Internap Corp.(c)		216,068
	20,173	j2 Global, Inc.		1,399,401
	41,484	Limelight Networks, Inc.(c)		153,491
	12,650	Liquidity Services, Inc.(c)		118,404
	23,062	LivePerson, Inc.(c)		216,783
	10,323	LogMeIn, Inc.(c)		662,530
	15,490	Marin Software, Inc.(c)		93,560
	17,390	Marketo, Inc.(c)		494,746
	18,632	MercadoLibre, Inc. (Argentina)		2,651,893
	38,322	Monster Worldwide, Inc.(c)		225,717
	31,434	NetEase, Inc. ADR (China)		4,029,524
	27,584	NIC, Inc.		468,928
	88,242	Pandora Media, Inc.(c)		1,574,237
	29,174	Perion Network Ltd. (Israel)(b)(c)		102,109
	41,471	Qihoo 360 Technology Co. Ltd., Class A ADR (China)(b)(c)		2,500,701
	18,774	QuinStreet, Inc.(c)		101,943
	60,575	Rackspace Hosting, Inc.(c)		3,264,993
	15,234	RealNetworks, Inc.(c)		100,087
	22,912	RetailMeNot, Inc.(b)(c)		421,123
	17,426	Rocket Fuel, Inc.(b)(c)		139,582
	11,637	SciQuest, Inc.(c)		178,861
	15,049	Shutterstock, Inc.(c)		1,015,657
	27,885	SINA Corp. (China)(c)		1,226,801
	16,240	Sohu.com, Inc. (China)(c)		1,079,148
	6,714	Stamps.com, Inc.(c)		415,529
	13,643	TechTarget, Inc.(c)		147,617
	32,553	TrueCar, Inc.(b)(c)		501,967
	175,626	Twitter, Inc.(c)		6,842,389
	6,030	United Online, Inc.(c)		95,455
	49,322	VeriSign, Inc.(c)		3,132,440
	21,914	Web.com Group, Inc.(c)		402,560
	15,702	WebMD Health Corp.(c)		693,243
	19,248	Weibo Corp., Class A ADR (China)(c)		321,057
	16,111	Wix.com Ltd. (Israel)(c)		313,681
	16,285	Xoom Corp.(b)(c)		287,756
	190,698	Yahoo!, Inc.(c)		8,117,060
	107,853	Yandex NV, Class A (Russia)(c)		2,075,092
	15,589	YY, Inc. ADR (China)(b)(c)		990,837
	24,400	Zillow Group, Inc., Class A(b)(c)		2,382,416
				138,660,296
		IT Consulting & Other Services—0.1%
	14,526	Perficient, Inc.(c)		299,671

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

43

PowerShares NASDAQ Internet Portfolio (PNQI) (continued)

April 30, 2015

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Wireless Telecommunication Services—0.1%
	15,304	Boingo Wireless, Inc.(c)	$	126,411
		Total Common Stocks and Other Equity Interests (Cost $207,726,157)		216,886,407
		Money Market Fund—0.0%
	63,879	Invesco Premier Portfolio—Institutional Class(d) (Cost $63,879)		63,879
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $207,790,036)—100.0%		216,950,286
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—4.1%
	8,833,889	Invesco Liquid Assets Portfolio—Institutional Class(d)(e) (Cost $8,833,889)		8,833,889
		Total Investments (Cost $216,623,925)—104.1%		225,784,175
		Other assets less liabilities—(4.1)%		(8,933,249	)
		Net Assets—100.0%	$	216,850,926

Investment Abbreviations:

ADR—American Depositary Receipt

REIT—Real Estate Investment Trust

Notes to Schedule of Investments:

^(a)  Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s.

^(b)  All or a portion of this security was out on loan at April 30, 2015.

^(c)  Non-income producing security.

^(d)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated.

^(e)  The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2G. The following table presents the Fund’s gross and net amount of assets available for offset by the Fund as of April 30, 2015.

Counterparty	Gross Amount of Securities on Loan at Value		Cash Collateral Received for Securities Loaned*			Net Amount
Brown Brothers Harriman & Co.	$	8,510,763	$	(8,510,763	)	$	—

* Amount does not include excess collateral received, if any.

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

China 15.1%

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

44

(This Page Intentionally Left Blank)

Statements of Assets and Liabilities

April 30, 2015

	PowerShares DWA Basic Materials Momentum Portfolio (PYZ)			PowerShares DWA Consumer Cyclicals Momentum Portfolio (PEZ)			PowerShares DWA Consumer Staples Momentum Portfolio (PSL)			PowerShares DWA Energy Momentum Portfolio (PXI)
Assets:
Unaffiliated investments, at value(a)	$	78,098,813		$	96,480,987		$	97,699,369		$	183,108,239
Affiliated investments, at value		94,342			99,851			138,857			298,040
Total investments, at value		78,193,155			96,580,838			97,838,226			183,406,279
Receivables:
Dividends		26,205			35,117			18,531			105,377
Securities lending		—			—			—			—
Shares sold		—			—			2,630,819			—
Total Assets		78,219,360			96,615,955			100,487,576			183,511,656
Liabilities:
Payables:
Investments purchased		—			—			2,627,714			—
Collateral upon return of securities loaned		—			—			—			—
Accrued advisory fees		25,145			23,302			26,956			45,066
Accrued trustees’ and officer’s fees		16,910			14,962			15,588			19,529
Accrued expenses		95,207			114,808			103,906			269,378
Total Liabilities		137,262			153,072			2,774,164			333,973
Net Assets	$	78,082,098		$	96,462,883		$	97,713,412		$	183,177,683
Net Assets Consist of:
Shares of beneficial interest	$	100,611,111		$	102,783,199		$	101,850,934		$	237,193,393
Undistributed net investment income (loss)		174,712			28,193			100,936			798,939
Undistributed net realized gain (loss)		(26,784,717	)		(12,972,202	)		(11,045,567	)		(67,461,246	)
Net unrealized appreciation		4,080,992			6,623,693			6,807,109			12,646,597
Net Assets	$	78,082,098		$	96,462,883		$	97,713,412		$	183,177,683
Shares outstanding (unlimited amount authorized, $0.01 par value)		1,450,000			2,100,000			1,900,000			3,700,000
Net asset value	$	53.85		$	45.93		$	51.43		$	49.51
Market price	$	53.80		$	45.93		$	51.43		$	49.51
Unaffiliated investments, at cost	$	74,017,821		$	89,857,294		$	90,892,260		$	170,461,642
Affiliated investments, at cost	$	94,342		$	99,851		$	138,857		$	298,040
Total investments, at cost	$	74,112,163		$	89,957,145		$	91,031,117		$	170,759,682
(a) Includes securities on loan with an aggregate value of	$	—		$	—		$	—		$	—

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

46

PowerShares DWA Financial Momentum Portfolio (PFI)			PowerShares DWA Healthcare Momentum Portfolio (PTH)			PowerShares DWA Industrials Momentum Portfolio (PRN)			PowerShares DWA Technology Momentum Portfolio (PTF)			PowerShares DWA Utilities Momentum Portfolio (PUI)			PowerShares NASDAQ Internet Portfolio (PNQI)
$	37,313,389		$	178,907,807		$	112,439,511		$	64,612,469		$	34,868,603		$	216,886,407
	1,193,068			116,298			111,650			98,758			71,483			8,897,768
	38,506,457			179,024,105			112,551,161			64,711,227			34,940,086			225,784,175
	39,514			—			14,583			1,603			43,458			—
	—			—			—			—			—			9,335
	—			—			—			—			—			—
	38,545,971			179,024,105			112,565,744			64,712,830			34,983,544			225,793,510
	—			—			—			—			—			—
	—			—			—			—			—			8,833,889
	6,322			62,932			41,351			16,644			7,232			108,695
	14,679			18,198			17,172			15,638			15,679			—
	78,373			140,528			93,400			92,819			67,212			—
	99,374			221,658			151,923			125,101			90,123			8,942,584
$	38,446,597		$	178,802,447		$	112,413,821		$	64,587,729		$	34,893,421		$	216,850,926
$	48,746,914		$	221,026,640		$	157,427,433		$	92,592,443		$	48,056,897		$	220,541,886
	88,523			(267,356	)		127,791			(45,530	)		124,956			(305,444	)
	(11,994,497	)		(57,357,765	)		(51,576,111	)		(35,063,910	)		(15,692,649	)		(12,545,766	)
	1,605,657			15,400,928			6,434,708			7,104,726			2,404,217			9,160,250
$	38,446,597		$	178,802,447		$	112,413,821		$	64,587,729		$	34,893,421		$	216,850,926
	1,250,000			3,100,000			2,400,000			1,600,000			1,550,000			3,000,000
$	30.76		$	57.68		$	46.84		$	40.37		$	22.51		$	72.28
$	30.76		$	57.64		$	46.85		$	40.36		$	22.50		$	72.26
$	35,845,124		$	163,506,879		$	106,004,803		$	57,507,743		$	32,464,386		$	207,726,157
$	1,055,676		$	116,298		$	111,650		$	98,758		$	71,483		$	8,897,768
$	36,900,800		$	163,623,177		$	106,116,453		$	57,606,501		$	32,535,869		$	216,623,925
$	—		$	—		$	—		$	—		$	—		$	8,510,763

47

Statements of Operations

For the year ended April 30, 2015

	PowerShares DWA Basic Materials Momentum Portfolio (PYZ)			PowerShares DWA Consumer Cyclicals Momentum Portfolio (PEZ)			PowerShares DWA Consumer Staples Momentum Portfolio (PSL)			PowerShares DWA Energy Momentum Portfolio (PXI)
Investment Income:
Unaffiliated dividend income	$	1,322,084		$	756,188		$	1,201,418		$	3,237,457
Affiliated dividend income		18			16			16			41
Securities lending income		5,577			—			—			—
Foreign withholding tax		—			(1,220	)		—			(1,752	)
Total Income		1,327,679			754,984			1,201,434			3,235,746
Expenses:
Advisory fees		476,488			306,956			280,882			1,026,902
Sub-licensing fees		69,400			86,407			57,375			366,840
Accounting & administration fees		36,770			36,804			36,804			44,029
Professional fees		31,076			30,186			29,780			34,432
Trustees’ and officer’s fees		9,745			9,027			8,739			12,000
Custodian & transfer agent fees		6,877			4,522			5,030			6,675
Other expenses		24,529			21,838			20,422			37,932
Total Expenses		654,885			495,740			439,032			1,528,810
Less: Waivers		(82,563	)		(127,515	)		(102,091	)		(290,380	)
Net Expenses		572,322			368,225			336,941			1,238,430
Net Investment Income (Loss)		755,357			386,759			864,493			1,997,316
Realized and Unrealized Gain (Loss):
Net realized gain (loss) from:
Investment securities		(8,727,022	)		(3,656,449	)		(3,318,427	)		(45,998,938	)
In-kind redemptions		11,478,788			3,391,569			2,839,552			8,261,709
Net realized gain (loss)		2,751,766			(264,880	)		(478,875	)		(37,737,229	)
Net change in unrealized appreciation (depreciation) on investment securities		(2,563,405	)		8,042,533			7,201,245			(11,115,391	)
Net realized and unrealized gain (loss)		188,361			7,777,653			6,722,370			(48,852,620	)
Net increase (decrease) in net assets resulting from operations	$	943,718		$	8,164,412		$	7,586,863		$	(46,855,304	)

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

48

PowerShares DWA Financial Momentum Portfolio (PFI)			PowerShares DWA Healthcare Momentum Portfolio (PTH)			PowerShares DWA Industrials Momentum Portfolio (PRN)			PowerShares DWA Technology Momentum Portfolio (PTF)			PowerShares DWA Utilities Momentum Portfolio (PUI)			PowerShares NASDAQ Internet Portfolio (PNQI)
$	662,435		$	252,800		$	1,222,427		$	646,728		$	1,267,354		$	659,922
	37,781			15			17			21			8			19
	—			—			—			—			—			164,986
	—			—			(2,752	)		—			(1,127	)		(8,392	)
	700,216			252,815			1,219,692			646,749			1,266,235			816,535
	190,642			584,473			634,045			304,403			205,108			1,694,618
	30,564			98,204			64,697			63,023			24,138			—
	36,770			36,771			36,770			36,777			36,771			—
	30,846			30,718			31,922			30,025			30,076			—
	8,559			9,697			10,384			8,959			8,531			—
	6,544			6,835			6,979			5,242			5,759			—
	19,049			23,245			24,429			21,347			18,998			—
	322,974			789,943			809,226			469,776			329,381			1,694,618
	(94,304	)		(88,691	)		(48,520	)		(104,640	)		(83,320	)		(119	)
	228,670			701,252			760,706			365,136			246,061			1,694,499
	471,546			(448,437	)		458,986			281,613			1,020,174			(877,964	)
	(1,807,174	)		(9,092,920	)		(14,854,762	)		(5,639,040	)		(1,188,157	)		(9,400,608	)
	3,945,029			14,076,061			5,922,786			8,767,755			3,544,904			32,558,387
	2,137,855			4,983,141			(8,931,976	)		3,128,715			2,356,747			23,157,779
	1,494,315			19,902,877			8,773,867			10,043,793			(2,176,606	)		20,785,790
	3,632,170			24,886,018			(158,109	)		13,172,508			180,141			43,943,569
$	4,103,716		$	24,437,581		$	300,877		$	13,454,121		$	1,200,315		$	43,065,605

49

Statements of Changes in Net Assets

For the years ended April 30, 2015 and 2014

	PowerShares DWA Basic Materials Momentum Portfolio (PYZ)						PowerShares DWA Consumer Cyclicals Momentum Portfolio (PEZ)
	2015			2014			2015			2014
Operations:
Net investment income (loss)	$	755,357		$	854,877		$	386,759		$	112,484
Net realized gain (loss)		2,751,766			17,417,241			(264,880	)		6,822,592
Net change in unrealized appreciation (depreciation)		(2,563,405	)		(2,979,184	)		8,042,533			(4,467,963	)
Net increase (decrease) in net assets resulting from operations		943,718			15,292,934			8,164,412			2,467,113
Distributions to Shareholders from:
Net investment income		(881,072	)		(855,864	)		(352,829	)		(129,334	)
Shareholder Transactions:
Proceeds from shares sold		64,480,821			73,661,881			74,536,962			59,400,392
Value of shares repurchased		(80,651,397	)		(74,162,058	)		(31,639,305	)		(39,917,618	)
Net increase (decrease) in net assets resulting from shares transactions		(16,170,576	)		(500,177	)		42,897,657			19,482,774
Increase (Decrease) in Net Assets		(16,107,930	)		13,936,893			50,709,240			21,820,553
Net Assets:
Beginning of year		94,190,028			80,253,135			45,753,643			23,933,090
End of year	$	78,082,098		$	94,190,028		$	96,462,883		$	45,753,643
Undistributed net investment income (loss) at end of year	$	174,712		$	241,490		$	28,193		$	(39	)
Changes in Shares Outstanding:
Shares sold		1,150,000			1,550,000			1,650,000			1,500,000
Shares repurchased		(1,500,000	)		(1,600,000	)		(700,000	)		(1,050,000	)
Shares outstanding, beginning of year		1,800,000			1,850,000			1,150,000			700,000
Shares outstanding, end of year		1,450,000			1,800,000			2,100,000			1,150,000

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

50

PowerShares DWA Consumer Staples Momentum Portfolio (PSL)						PowerShares DWA Energy Momentum Portfolio (PXI)						PowerShares DWA Financial Momentum Portfolio (PFI)						PowerShares DWA Healthcare Momentum Portfolio (PTH)
2015			2014			2015			2014			2015			2014			2015			2014
$	864,493		$	600,840		$	1,997,316		$	1,039,264		$	471,546		$	313,310		$	(448,437	)	$	5,402
	(478,875	)		11,759,367			(37,737,229	)		28,951,519			2,137,855			5,834,367			4,983,141			18,995,154
	7,201,245			(8,568,511	)		(11,115,391	)		8,823,850			1,494,315			(2,648,471	)		19,902,877			(12,438,845	)
	7,586,863			3,791,696			(46,855,304	)		38,814,633			4,103,716			3,499,206			24,437,581			6,561,711
	(932,548	)		(519,961	)		(2,298,949	)		(942,939	)		(460,625	)		(327,300	)		—			(245,316	)
	76,936,911			40,671,117			116,145,756			211,564,193			31,087,185			41,859,075			161,411,849			129,950,062
	(24,616,231	)		(42,912,351	)		(98,254,563	)		(172,910,991	)		(32,450,739	)		(29,193,899	)		(113,607,415	)		(89,776,750	)
	52,320,680			(2,241,234	)		17,891,193			38,653,202			(1,363,554	)		12,665,176			47,804,434			40,173,312
	58,974,995			1,030,501			(31,263,060	)		76,524,896			2,279,537			15,837,082			72,242,015			46,489,707
	38,738,417			37,707,916			214,440,743			137,915,847			36,167,060			20,329,978			106,560,432			60,070,725
$	97,713,412		$	38,738,417		$	183,177,683		$	214,440,743		$	38,446,597		$	36,167,060		$	178,802,447		$	106,560,432
$	100,936		$	168,991		$	798,939		$	496,931		$	88,523		$	42,017		$	(267,356	)	$	(155,606	)
	1,500,000			950,000			1,950,000			3,950,000			1,000,000			1,550,000			2,900,000			2,850,000
	(500,000	)		(1,000,000	)		(1,800,000	)		(3,250,000	)		(1,050,000	)		(1,100,000	)		(2,150,000	)		(2,050,000	)
	900,000			950,000			3,550,000			2,850,000			1,300,000			850,000			2,350,000			1,550,000
	1,900,000			900,000			3,700,000			3,550,000			1,250,000			1,300,000			3,100,000			2,350,000

51

Statements of Changes in Net Assets (continued)

For the years ended April 30, 2015 and 2014

	PowerShares DWA Industrials Momentum Portfolio (PRN)						PowerShares DWA Technology Momentum Portfolio (PTF)
	2015			2014			2015			2014
Operations:
Net investment income (loss)	$	458,986		$	426,248		$	281,613		$	50,166
Net realized gain (loss)		(8,931,976	)		20,871,490			3,128,715			9,068,960
Net change in unrealized appreciation (depreciation)		8,773,867			(7,691,104	)		10,043,793			(7,416,013	)
Net increase in net assets resulting from operations		300,877			13,606,634			13,454,121			1,703,113
Distributions to Shareholders from:
Net investment income		(407,957	)		(341,196	)		(406,069	)		(65,769	)
Shareholder Transactions:
Proceeds from shares sold		48,061,097			216,269,719			48,504,403			56,477,215
Value of shares repurchased		(105,162,426	)		(98,486,362	)		(50,489,939	)		(36,642,270	)
Net increase (decrease) in net assets resulting from shares transactions		(57,101,329	)		117,783,357			(1,985,536	)		19,834,945
Increase (Decrease) in Net Assets		(57,208,409	)		131,048,795			11,062,516			21,472,289
Net Assets:
Beginning of year		169,622,230			38,573,435			53,525,213			32,052,924
End of year	$	112,413,821		$	169,622,230		$	64,587,729		$	53,525,213
Undistributed net investment income (loss) at end of year	$	127,791		$	76,762		$	(45,530	)	$	(41,992	)
Changes in Shares Outstanding:
Shares sold		1,000,000			4,800,000			1,250,000			1,700,000
Shares repurchased		(2,250,000	)		(2,200,000	)		(1,300,000	)		(1,150,000	)
Shares outstanding, beginning of year		3,650,000			1,050,000			1,650,000			1,100,000
Shares outstanding, end of year		2,400,000			3,650,000			1,600,000			1,650,000

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

52

PowerShares DWA Utilities Momentum Portfolio (PUI)						PowerShares NASDAQ Internet Portfolio (PNQI)
2015			2014			2015			2014
$	1,020,174		$	902,306		$	(877,964	)	$	(871,050	)
	2,356,747			7,202,577			23,157,779			34,722,920
	(2,176,606	)		(2,181,700	)		20,785,790			(19,851,903	)
	1,200,315			5,923,183			43,065,605			13,999,967
	(982,578	)		(929,718	)		—			—
	11,737,939			16,775,859			65,104,807			317,679,346
	(18,663,468	)		(22,772,053	)		(180,947,163	)		(106,576,777	)
	(6,925,529	)		(5,996,194	)		(115,842,356	)		211,102,569
	(6,707,792	)		(1,002,729	)		(72,776,751	)		225,102,536
	41,601,213			42,603,942			289,627,677			64,525,141
$	34,893,421		$	41,601,213		$	216,850,926		$	289,627,677
$	124,956		$	87,360		$	(305,444	)	$	(459,490	)
	500,000			850,000			950,000			4,950,000
	(800,000	)		(1,150,000	)		(2,650,000	)		(1,650,000	)
	1,850,000			2,150,000			4,700,000			1,400,000
	1,550,000			1,850,000			3,000,000			4,700,000

53

Financial Highlights

PowerShares DWA Basic Materials Momentum Portfolio (PYZ)

	Year Ended April 30,
	2015			2014			2013			2012			2011
Per Share Operating Performance:
Net asset value at beginning of year	$	52.33		$	43.38		$	38.24		$	40.66		$	31.30
Net investment income(a)		0.43			0.51			0.63			0.47			0.86	(b)
Net realized and unrealized gain (loss) on investments		1.57			8.95			5.16			(2.46	)		9.34
Total from investment operations		2.00			9.46			5.79			(1.99	)		10.20
Distributions to shareholders from:
Net investment income		(0.48	)		(0.51	)		(0.65	)		(0.43	)		(0.84	)
Net asset value at end of year	$	53.85		$	52.33		$	43.38		$	38.24		$	40.66
Market price at end of year(c)	$	53.80		$	52.31		$	43.29		$	38.20		$	40.67
Net Asset Value Total Return(d)		3.82	%		21.97	%		15.37	%		(4.76	)%		33.12	%
Market Price Total Return(d)		3.77	%		22.18	%		15.26	%		(4.88	)%		32.98	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	78,082		$	94,190		$	80,253		$	66,924		$	97,591
Ratio to average net assets of:
Expenses, after Waivers		0.60	%		0.64	%		0.65	%		0.65	%		0.65	%
Expenses, prior to Waivers		0.69	%		0.68	%		0.72	%		0.76	%		0.79	%
Net investment income, after Waivers		0.79	%		1.08	%		1.59	%		1.33	%		2.56	%(b)
Portfolio turnover rate(e)		80	%		158	%		63	%		78	%		28	%

^(a)  Based on average shares outstanding.

^(b)  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.

^(c)  The mean between the last bid and ask prices.

^(d)  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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(e)  Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions. For the fiscal year ended April 30, 2014, the portfolio turnover calculation includes the value of securities purchased and sold in the effort to realign the Fund’s portfolio holdings due to the underlying index change.

PowerShares DWA Consumer Cyclicals Momentum Portfolio (PEZ)

	Year Ended April 30,
	2015			2014			2013			2012			2011
Per Share Operating Performance:
Net asset value at beginning of year	$	39.79		$	34.19		$	29.90		$	27.54		$	23.72
Net investment income(a)		0.27			0.17			0.39			0.18			0.20
Net realized and unrealized gain on investments		6.06			5.63			4.24			2.37			3.79
Total from investment operations		6.33			5.80			4.63			2.55			3.99
Distributions to shareholders from:
Net investment income		(0.19	)		(0.20	)		(0.34	)		(0.19	)		(0.17	)
Net asset value at end of year	$	45.93		$	39.79		$	34.19		$	29.90		$	27.54
Market price at end of year(b)	$	45.93		$	39.74		$	34.16		$	29.89		$	27.53
Net Asset Value Total Return(c)		15.91	%		16.97	%		15.67	%		9.41	%		16.91	%
Market Price Total Return(c)		16.06	%		16.93	%		15.60	%		9.41	%		16.77	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	96,463		$	45,754		$	23,933		$	19,437		$	20,657
Ratio to average net assets of:
Expenses, after Waivers		0.60	%		0.64	%		0.65	%		0.65	%		0.65	%
Expenses, prior to Waivers		0.81	%		0.91	%		0.93	%		1.19	%		1.24	%
Net investment income, after Waivers		0.63	%		0.42	%		1.29	%		0.69	%		0.86	%
Portfolio turnover rate(d)		114	%		236	%		130	%		88	%		68	%

^(a)  Based on average shares outstanding.

^(b)  The mean between the last bid and ask prices.

^(c)  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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(d)  Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions. For the fiscal year ended April 30, 2014, the portfolio turnover calculation includes the value of securities purchased and sold in the effort to realign the Fund’s portfolio holdings due to the underlying index change.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

54

Financial Highlights (continued)

PowerShares DWA Consumer Staples Momentum Portfolio (PSL)

	Year Ended April 30,
	2015			2014			2013			2012			2011
Per Share Operating Performance:
Net asset value at beginning of year	$	43.04		$	39.69		$	32.61		$	31.36		$	26.74
Net investment income(a)		0.76	(b)		0.66			0.66			0.48			0.52
Net realized and unrealized gain on investments		8.37			3.26			7.13			1.22			4.61
Total from investment operations		9.13			3.92			7.79			1.70			5.13
Distributions to shareholders from:
Net investment income		(0.74	)		(0.57	)		(0.71	)		(0.45	)		(0.51	)
Net asset value at end of year	$	51.43		$	43.04		$	39.69		$	32.61		$	31.36
Market price at end of year(c)	$	51.43		$	43.03		$	39.67		$	32.60		$	31.37
Net Asset Value Total Return(d)		21.28	%		9.93	%		24.29	%		5.53	%		19.46	%
Market Price Total Return(d)		21.31	%		9.97	%		24.27	%		5.47	%		19.50	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	97,713		$	38,738		$	37,708		$	39,131		$	40,772
Ratio to average net assets of:
Expenses, after Waivers		0.60	%		0.64	%		0.65	%		0.65	%		0.65	%
Expenses, prior to Waivers		0.78	%		0.79	%		0.82	%		0.89	%		0.94	%
Net investment income, after Waivers		1.54	%(b)		1.56	%		1.94	%		1.54	%		1.91	%
Portfolio turnover rate(e)		83	%		175	%		57	%		35	%		54	%

^(a)  Based on average shares outstanding.

^(b)  Net investment income per share and the ratio of net investment income to average net assets include a significant dividend received of $5.77 per share owned of Pilgrim’s Pride Corp. on January 28, 2015.. Net investment income per share and the ratio of net investment income to average net assets excluding the significant dividend are $0.28 and 0.55%, respectively.

^(c)  The mean between the last bid and ask prices.

^(d)  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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(e)  Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions. For the fiscal year ended April 30, 2014, the portfolio turnover calculation includes the value of securities purchased and sold in the effort to realign the Fund’s portfolio holdings due to the underlying index change.

PowerShares DWA Energy Momentum Portfolio (PXI)

	Year Ended April 30,
	2015			2014			2013			2012			2011
Per Share Operating Performance:
Net asset value at beginning of year	$	60.41		$	48.39		$	40.45		$	44.63		$	29.75
Net investment income(a)		0.53			0.34			0.47			0.21			0.32
Net realized and unrealized gain (loss) on investments		(10.82	)		12.01			8.13			(4.15	)		14.77
Total from investment operations		(10.29	)		12.35			8.60			(3.94	)		15.09
Distributions to shareholders from:
Net investment income		(0.61	)		(0.33	)		(0.66	)		(0.24	)		(0.21	)
Net asset value at end of year	$	49.51		$	60.41		$	48.39		$	40.45		$	44.63
Market price at end of year(b)	$	49.51		$	60.37		$	48.36		$	40.47		$	44.65
Net Asset Value Total Return(c)		(17.08	)%		25.66	%		21.48	%		(8.79	)%		51.01	%
Market Price Total Return(c)		(17.02	)%		25.66	%		21.35	%		(8.78	)%		51.07	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	183,178		$	214,441		$	137,916		$	141,562		$	191,903
Ratio to average net assets of:
Expenses, after Waivers		0.60	%		0.64	%		0.66	%		0.65	%		0.65	%
Expenses, prior to Waivers		0.74	%		0.64	%		0.69	%		0.66	%		0.74	%
Net investment income, after Waivers		0.97	%		0.65	%		1.10	%		0.54	%		0.90	%
Portfolio turnover rate(d)		109	%		198	%		80	%		107	%		35	%

^(a)  Based on average shares outstanding.

^(b)  The mean between the last bid and ask prices.

^(c)  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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(d)  Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions. For the fiscal year ended April 30, 2014, the portfolio turnover calculation includes the value of securities purchased and sold in the effort to realign the Fund’s portfolio holdings due to the underlying index change.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

55

Financial Highlights (continued)

PowerShares DWA Financial Momentum Portfolio (PFI)

	Year Ended April 30,
	2015			2014			2013			2012			2011
Per Share Operating Performance:
Net asset value at beginning of year	$	27.82		$	23.92		$	20.08		$	20.45		$	18.46
Net investment income(a)		0.37			0.32			0.35			0.25			0.27
Net realized and unrealized gain (loss) on investments		2.92			3.93			3.83			(0.42	)		2.04
Total from investment operations		3.29			4.25			4.18			(0.17	)		2.31
Distributions to shareholders from:
Net investment income		(0.35	)		(0.35	)		(0.34	)		(0.20	)		(0.32	)
Net asset value at end of year	$	30.76		$	27.82		$	23.92		$	20.08		$	20.45
Market price at end of year(b)	$	30.76		$	27.79		$	23.90		$	20.07		$	20.44
Net Asset Value Total Return(c)		11.84	%		17.89	%		21.07	%		(0.66	)%		12.76	%
Market Price Total Return(c)		11.96	%		17.86	%		21.03	%		(0.66	)%		12.77	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	38,447		$	36,167		$	20,330		$	18,071		$	22,492
Ratio to average net assets of:
Expenses, after Waivers(d)		0.60	%		0.64	%		0.66	%		0.65	%		0.65	%
Expenses, prior to Waivers(d)		0.85	%		0.91	%		1.10	%		1.21	%		1.30	%
Net investment income, after Waivers		1.24	%		1.20	%		1.66	%		1.33	%		1.50	%
Portfolio turnover rate(e)		115	%		232	%		118	%		102	%		59	%

^(a)  Based on average shares outstanding.

^(b)  The mean between the last bid and ask prices.

^(c)  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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(d)  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 company expenses are not expenses that are incurred directly by the Fund. They are expenses that are incurred directly by the investment companies and are deducted from the value of the funds that the Fund invests in. The effect of the estimated investment company expenses that the Fund bears indirectly is included in the Fund’s total return.

^(e)  Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions. For the fiscal year ended April 30, 2014, the portfolio turnover calculation includes the value of securities purchased and sold in the effort to realign the Fund’s portfolio holdings due to the underlying index change.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

56

Financial Highlights (continued)

PowerShares DWA Healthcare Momentum Portfolio (PTH)

	Year Ended April 30,
	2015			2014			2013			2012			2011
Per Share Operating Performance:
Net asset value at beginning of year	$	45.34		$	38.76		$	32.29		$	31.41		$	25.68
Net investment income (loss)(a)		(0.20	)		0.00	(b)		0.43			0.02			(0.05	)
Net realized and unrealized gain on investments		12.54			6.73			6.39			0.86			5.78
Total from investment operations		12.34			6.73			6.82			0.88			5.73
Distributions to shareholders from:
Net investment income		—			(0.15	)		(0.35	)		—			—
Return of capital		—			—			—			—			—
Total distributions		—			(0.15	)		(0.35	)		—			—
Net asset value at end of year	$	57.68		$	45.34		$	38.76		$	32.29		$	31.41
Market price at end of year(c)	$	57.64		$	45.34		$	38.69		$	32.30		$	31.44
Net Asset Value Total Return(d)		27.22	%		17.41	%		21.31	%		2.80	%		22.31	%
Market Price Total Return(d)		27.13	%		17.62	%		21.06	%		2.74	%		22.48	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	178,802		$	106,560		$	60,071		$	37,134		$	62,822
Ratio to average net assets of:
Expenses, after Waivers		0.60	%		0.64	%		0.65	%		0.65	%		0.65	%
Expenses, prior to Waivers		0.68	%		0.68	%		0.74	%		0.82	%		0.84	%
Net investment income (loss), after Waivers		(0.38	)%		0.01	%		1.26	%		0.05	%		(0.21	)%
Portfolio turnover rate(e)		151	%		278	%		93	%		99	%		63	%

^(a)  Based on average shares outstanding.

^(b)  Amount represents less than $0.005.

^(c)  The mean between the last bid and ask prices.

^(d)  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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(e)  Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions. For the fiscal year ended April 30, 2014, the portfolio turnover calculation includes the value of securities purchased and sold in the effort to realign the Fund’s portfolio holdings due to the underlying index change.

PowerShares DWA Industrials Momentum Portfolio (PRN)

	Year Ended April 30,
	2015			2014			2013			2012			2011
Per Share Operating Performance:
Net asset value at beginning of year	$	46.47		$	36.74		$	30.02		$	32.47		$	25.21
Net investment income(a)		0.17			0.19			0.52			0.22			0.17
Net realized and unrealized gain (loss) on investments		0.35			9.72			6.89			(2.48	)		7.29
Total from investment operations		0.52			9.91			7.41			(2.26	)		7.46
Distributions to shareholders from:
Net investment income		(0.15	)		(0.18	)		(0.65	)		(0.19	)		(0.20	)
Return of capital		—			—			(0.04	)		—			—
Total distributions		(0.15	)		(0.18	)		(0.69	)		(0.19	)		(0.20	)
Net asset value at end of year	$	46.84		$	46.47		$	36.74		$	30.02		$	32.47
Market price at end of year(b)	$	46.85		$	46.43		$	36.72		$	30.00		$	32.48
Net Asset Value Total Return(c)		1.12	%		27.01	%		25.18	%		(6.91	)%		29.83	%
Market Price Total Return(c)		1.23	%		26.97	%		25.19	%		(7.00	)%		29.92	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	112,414		$	169,622		$	38,573		$	30,017		$	113,629
Ratio to average net assets of:
Expenses, after Waivers		0.60	%		0.63	%		0.65	%		0.65	%		0.65	%
Expenses, prior to Waivers		0.64	%		0.66	%		0.92	%		0.80	%		0.88	%
Net investment income, after Waivers		0.36	%		0.43	%		1.65	%		0.77	%		0.62	%
Portfolio turnover rate(d)		121	%		285	%		116	%		129	%		48	%

^(a)  Based on average shares outstanding.

^(b)  The mean between the last bid and ask prices.

^(c)  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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(d)  Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions. For the fiscal year ended April 30, 2014, the portfolio turnover calculation includes the value of securities purchased and sold in the effort to realign the Fund’s portfolio holdings due to the underlying index change.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

57

Financial Highlights (continued)

PowerShares DWA Technology Momentum Portfolio (PTF)

	Year Ended April 30,
	2015			2014			2013			2012			2011
Per Share Operating Performance:
Net asset value at beginning of year	$	32.44		$	29.14		$	27.29		$	27.66		$	23.60
Net investment income (loss)(a)		0.17			0.04			0.17			0.01			(0.02	)
Net realized and unrealized gain (loss) on investments		8.02			3.32			1.88			(0.38	)		4.09
Total from investment operations		8.19			3.36			2.05			(0.37	)		4.07
Distributions to shareholders from:
Net investment income		(0.26	)		(0.06	)		(0.20	)		—			—
Return of capital		—			—			—			—			(0.01	)
Total distributions		(0.26	)		(0.06	)		(0.20	)		—			(0.01	)
Net asset value at end of year	$	40.37		$	32.44		$	29.14		$	27.29		$	27.66
Market price at end of year(b)	$	40.36		$	32.45		$	29.06		$	27.28		$	27.65
Net Asset Value Total Return(c)		25.29	%		11.52	%		7.59	%		(1.34	)%		17.26	%
Market Price Total Return(c)		25.22	%		11.86	%		7.34	%		(1.34	)%		17.27	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	64,588		$	53,525		$	32,053		$	31,387		$	49,793
Ratio to average net assets of:
Expenses, after Waivers		0.60	%		0.64	%		0.65	%		0.65	%		0.65	%
Expenses, prior to Waivers		0.77	%		0.80	%		0.89	%		0.94	%		0.91	%
Net investment income (loss), after Waivers		0.46	%		0.13	%		0.63	%		0.03	%		(0.07	)%
Portfolio turnover rate(d)		157	%		263	%		95	%		108	%		67	%

^(a)  Based on average shares outstanding.

^(b)  The mean between the last bid and ask prices.

^(c)  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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(d)  Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions. For the fiscal year ended April 30, 2014, the portfolio turnover calculation includes the value of securities purchased and sold in the effort to realign the Fund’s portfolio holdings due to the underlying index change.

PowerShares DWA Utilities Momentum Portfolio (PUI)

	Year Ended April 30,
	2015			2014			2013			2012			2011
Per Share Operating Performance:
Net asset value at beginning of year	$	22.49		$	19.82		$	16.69		$	17.12		$	14.96
Net investment income(a)		0.57			0.47			0.45			0.41			0.48
Net realized and unrealized gain (loss) on investments		(0.01	)		2.68			3.14			(0.38	)		2.19
Total from investment operations		0.56			3.15			3.59			0.03			2.67
Distributions to shareholders from:
Net investment income		(0.54	)		(0.48	)		(0.46	)		(0.46	)		(0.51	)
Net asset value at end of year	$	22.51		$	22.49		$	19.82		$	16.69		$	17.12
Market price at end of year(b)	$	22.50		$	22.47		$	19.79		$	16.66		$	17.13
Net Asset Value Total Return(c)		2.48	%		16.27	%		21.90	%		0.26	%		18.36	%
Market Price Total Return(c)		2.53	%		16.35	%		21.94	%		0.02	%		18.42	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	34,893		$	41,601		$	42,604		$	43,393		$	47,089
Ratio to average net assets of:
Expenses, after Waivers		0.60	%		0.63	%		0.63	%		0.63	%		0.63	%
Expenses, prior to Waivers		0.80	%		0.77	%		0.81	%		0.77	%		0.89	%
Net investment income, after Waivers		2.49	%		2.31	%		2.54	%		2.45	%		3.12	%
Portfolio turnover rate(d)		47	%		131	%		48	%		71	%		68	%

^(a)  Based on average shares outstanding.

^(b)  The mean between the last bid and ask prices.

^(c)  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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(d)  Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions. For the fiscal year ended April 30, 2014, the portfolio turnover calculation includes the value of securities purchased and sold in the effort to realign the Fund’s portfolio holdings due to the underlying index change.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

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Financial Highlights (continued)

PowerShares NASDAQ Internet Portfolio (PNQI)

	Year Ended April 30,
	2015			2014			2013			2012			2011
Per Share Operating Performance:
Net asset value at beginning of year	$	61.62		$	46.09		$	41.08		$	41.37		$	27.99
Net investment income (loss)(a)		(0.21	)		(0.27	)		(0.01	)		(0.08	)		(0.06	)
Net realized and unrealized gain (loss) on investments		10.87			15.80			5.04			(0.21	)		13.44
Total from investment operations		10.66			15.53			5.03			(0.29	)		13.38
Distributions to shareholders from:
Net investment income		—			—			(0.02	)		—			—
Net asset value at end of year	$	72.28		$	61.62		$	46.09		$	41.08		$	41.37
Market price at end of year(b)	$	72.26		$	61.51		$	46.08		$	41.08		$	41.40
Net Asset Value Total Return(c)		17.30	%		33.70	%		12.26	%		(0.70	)%		47.80	%
Market Price Total Return(c)		17.48	%		33.48	%		12.23	%		(0.77	)%		47.81	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	216,851		$	289,628		$	64,525		$	63,678		$	45,507
Ratio to average net assets of:
Expenses		0.60	%		0.60	%		0.60	%		0.60	%		0.60	%
Net investment income (loss)		(0.31	)%		(0.42	)%		(0.02	)%		(0.22	)%		(0.17	)%
Portfolio turnover rate(d)		31	%		21	%		20	%		23	%		20	%

^(a)  Based on average shares outstanding.

^(b)  The mean between the last bid and ask prices.

^(c)  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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

^(d)  Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

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Notes to Financial Statements

PowerShares Exchange-Traded Fund Trust

April 30, 2015

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, 2015, the Trust offered fifty-three portfolios. This report includes the following portfolios:

Full Name	Short Name
PowerShares DWA Basic Materials Momentum Portfolio (PYZ)	“DWA Basic Materials Momentum Portfolio”
PowerShares DWA Consumer Cyclicals Momentum Portfolio (PEZ)	“DWA Consumer Cyclicals Momentum Portfolio”
PowerShares DWA Consumer Staples Momentum Portfolio (PSL)	“DWA Consumer Staples Momentum Portfolio”
PowerShares DWA Energy Momentum Portfolio (PXI)	“DWA Energy Momentum Portfolio”
PowerShares DWA Financial Momentum Portfolio (PFI)	“DWA Financial Momentum Portfolio”
PowerShares DWA Healthcare Momentum Portfolio (PTH)	“DWA Healthcare Momentum Portfolio”
PowerShares DWA Industrials Momentum Portfolio (PRN)	“DWA Industrials Momentum Portfolio”
PowerShares DWA Technology Momentum Portfolio (PTF)	“DWA Technology Momentum Portfolio”
PowerShares DWA Utilities Momentum Portfolio (PUI)	“DWA Utilities Momentum Portfolio”
PowerShares NASDAQ Internet Portfolio (PNQI)	“NASDAQ Internet Portfolio”

Each portfolio (each, a “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 NYSE Arca, Inc., except for Shares of NASDAQ Internet Portfolio, which are listed and traded on The NASDAQ Stock Market LLC.

The market price of each Share may differ to some degree from the Fund’s net asset value (“NAV”). 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 principally in exchange for the deposit or delivery of a basket of securities (“Deposit Securities”). 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 generally correspond (before fees and expenses) to the price and yield of its respective index listed below (each, an “Underlying Index”):

Fund	Underlying Index
DWA Basic Materials Momentum Portfolio	Dorsey Wright Basic Materials Technical LeadersTM Index
DWA Consumer Cyclicals Momentum Portfolio	Dorsey Wright Consumer Cyclicals Technical LeadersTM Index
DWA Consumer Staples Momentum Portfolio	Dorsey Wright Consumer Staples Technical LeadersTM Index
DWA Energy Momentum Portfolio	Dorsey Wright Energy Technical LeadersTM Index
DWA Financial Momentum Portfolio	Dorsey Wright Financials Technical LeadersTM Index
DWA Healthcare Momentum Portfolio	Dorsey Wright Healthcare Technical LeadersTM Index
DWA Industrials Momentum Portfolio	Dorsey Wright Industrials Technical LeadersTM Index
DWA Technology Momentum Portfolio	Dorsey Wright Technology Technical LeadersTM Index
DWA Utilities Momentum Portfolio	Dorsey Wright Utilities Technical LeadersTM Index
NASDAQ Internet Portfolio	NASDAQ Internet IndexSM

Note 2. Significant Accounting Policies

The preparation of the financial statements in accordance with accounting principles generally accepted in the United States of America (“GAAP”) 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. The following is a summary of the significant accounting policies followed by the Funds in preparation of their financial statements.

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A. Security Valuation

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

A security listed or traded on an exchange (except convertible securities) 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. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked 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 asked prices. For purposes of determining NAV per Share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).

Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end of day NAV per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the 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.

Debt obligations (including convertible securities) 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 (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Securities with a demand feature exercisable within one to seven days are valued at par. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.

Foreign securities’ (including foreign exchange contracts’) prices 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 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 Invesco PowerShares Capital Management LLC (the “Adviser”) determines 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’ prices 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. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.

Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith following procedures approved by the Board of Trustees. Issuer-specific events, market trends, bid/asked 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.

Each Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.

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.

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B. Other Risks

Index Risk. Unlike many investment companies, the Funds do not utilize investing strategies that seek returns in excess of their Underlying Indexes. Therefore, a Fund would not necessarily buy or sell a security unless that security is added or removed, respectively, from its respective Underlying Index, even if that security generally is underperforming.

Equity Risk. Equity risk is the risk that the value of the securities that each Fund holds will fall due to general market and economic conditions, perceptions regarding the industries in which the issuers of securities that a Fund holds participate or factors relating to specific companies in which the Fund invests. For example, an adverse event, such as an unfavorable earnings report, may depress the value of securities a Fund holds; the price of securities may be particularly sensitive to general movements in the stock market; or a drop in the stock market may depress the price of most or all of the securities a Fund holds. In addition, securities of an issuer in the Fund’s portfolio may decline in price if the issuer fails to make anticipated dividend payments because, among other reasons, the issuer of the security experiences a decline in its financial condition.

Industry Concentration Risk. In following its methodology, each Fund’s Underlying Index from time to time may be concentrated to a significant degree in securities of issuers located in a single industry or a sector. To the extent that an Underlying Index concentrates in the securities of issuers in a particular industry or sector, each Fund will also concentrate its investments to approximately the same extent. By concentrating its investments in an industry or sector, a Fund may face more risks than if it were diversified broadly over numerous industries or sectors. In addition, at times, an industry or sector may be out of favor and underperform other industries or the market as a whole. Any factors detrimental to the performance of such industry or sector will disproportionately impact a Fund’s NAV.

Non-Diversified Fund Risk. NASDAQ Internet Portfolio is non-diversified and can invest a greater portion of its assets in securities of individual issuers than diversified funds. 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. This may increase the Fund’s volatility and cause the performance of a relatively small number of issuers to have a greater impact on the Fund’s performance.

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 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.

Momentum Investing Risk. Each Fund (except NASDAQ Internet Portfolio) employs a “momentum” style of investing that is subject to the risk that the securities may be more volatile than the market as a whole, or that the returns on securities that have previously exhibited price momentum are less than returns on other styles of investing. Momentum can turn quickly, and stocks that previously exhibited high momentum may not experience continued positive momentum. In addition, there may be periods when the momentum style of investing is out of favor and therefore, the investment performance of the Fund may suffer.

Small and Medium Capitalization Company Risk. Investing in securities of small and medium capitalization companies involves greater risk than customarily is 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 focus are still evolving and, as a result, they may be more sensitive to changing market conditions.

Portfolio Turnover Risk. The Funds may engage in frequent trading of their portfolio securities in connection with the rebalancing or adjustment of their respective Underlying Index. A portfolio turnover rate of 200%, for example, is equivalent to a Fund buying and selling all of its securities two times during the course of a year. A high portfolio turnover rate (such as 100% or more) could result in high brokerage costs for a Fund. While a high portfolio turnover rate can result in an increase in taxable capital gain distributions to a Fund’s shareholders, each Fund will seek to utilize an in-kind creation and redemption mechanism to minimize realization of capital gains to the extent possible.

C. Federal Income Taxes

Each Fund intends to comply with the provisions of the Internal Revenue Code of 1986, as amended (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.

Each Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed each Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.

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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 U.S. federal tax returns and tax returns in 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 Transactions and Investment Income

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

Corporate actions (including cash dividends) are recorded net of non-reclaimable foreign tax withholdings on the ex-date.

E. Expenses

Expenses of the Trust that are directly identifiable to a specific Fund are applied to that Fund. Expenses of the Trust 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 own 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 Index, any distribution fees or expenses, litigation expenses, fees payable to the Trust’s Board members who are not “interested persons” (as defined in the 1940 Act) of the Trust (the “Independent Trustees”) or the Adviser, expenses incurred in connection with the Board members’ services, including travel expenses and legal fees of counsel for the Independent Trustees, acquired fund fees and expenses, if any, and extraordinary expenses.

NASDAQ Internet Portfolio has agreed to pay an annual unitary management fee to the Adviser. Out of the unitary management fee, the Adviser has agreed to pay for substantially all expenses of the Fund, including the cost of transfer agency, custody, fund administration, legal, audit and other services, except for advisory fees, distribution fees, if any, brokerage expenses, taxes, interest, litigation expenses and other extraordinary expenses (including acquired fund fees and expenses, if any).

To the extent a Fund invests in other investment companies, the expenses shown 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 such investment companies’ expenses are included in the realized and unrealized gain or loss on the investments in the investment companies.

F. Dividends and Distributions to Shareholders

Each Fund declares and pays dividends from net investment income, if any, to its shareholders quarterly and records such dividends on ex-dividend date. Generally, each Fund distributes net realized taxable capital gains, if any, annually in cash and records them on ex-dividend date. Such distributions on a tax basis are determined in conformity with federal 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 year-end.

G. Securities Lending

During the fiscal year ended April 30, 2015, DWA Basic Materials Momentum Portfolio and NASDAQ Internet Portfolio participated in securities lending. Each Fund loaned portfolio securities having a market value up to one-third of each Fund’s total assets. Such loans are secured by cash collateral equal to no less than 102% (105% for international) of the market value of the loaned securities determined daily by the securities lending provider. Cash collateral received in connection with these loans is invested in an affiliated money market fund and is shown as such on the Schedule of Investments. It is the policy of these Funds to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. Lending securities entails a risk of loss to a Fund if, and to the extent that, the market value of the securities loaned were to increase, and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. A Fund could experience delays and costs in gaining access to the collateral. A Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, are included in Securities lending income on the Statements of Operations. The aggregate value of securities out on loan, if any, is shown on the Statements of Assets and Liabilities.

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Note 3. Investment Advisory Agreement and Other Agreements

The Trust has entered into an Investment Advisory Agreement with the Adviser on behalf of each Fund, pursuant to which the Adviser has overall responsibility for the selection and ongoing monitoring of the Funds’ investments, managing the Funds’ business affairs and providing certain clerical, bookkeeping and other administrative services. Pursuant to that Investment Advisory Agreement, 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.

As compensation for its services, 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. Out of the unitary management fee, the Adviser has agreed to pay for substantially all expenses of NASDAQ Internet Portfolio, including the cost of transfer agency, custody, fund administration, legal, audit and other services, except for advisory fees, distribution fees, if any, brokerage expenses, taxes, interest, litigation expenses and other extraordinary expenses (including acquired fund fees and expenses, if any).

The Trust also has entered into an Amended and Restated Excess Expense Agreement (the “Expense Agreement”) with the Adviser on behalf of each Fund (except NASDAQ Internet Portfolio), pursuant to which the Adviser has agreed to waive fees and/or pay Fund expenses to the extent necessary to prevent the operating expenses (excluding interest expenses, brokerage commissions and other trading expenses, offering costs, taxes, acquired fund fees and expenses, if any, and extraordinary expenses) of each Fund (except NASDAQ Internet Portfolio) from exceeding 0.60% of the Fund’s average daily net assets per year (the “Expense Cap”), through at least August 31, 2016. Offering costs excluded from the Expense Cap for each Fund are: (a) initial legal fees pertaining to the Fund’s 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. Unless the Adviser continues the Expense Agreement, it will terminate on August 31, 2016. The Expense Agreement cannot be terminated during its term.

Further, through August 31, 2017, the Adviser has contractually agreed to waive a portion of each Fund’s management fee in an amount equal to 100% of the net advisory fees an affiliate of the Adviser receives that are attributable to certain of the Fund’s investments in money market funds managed by that affiliate (excluding investments of cash collateral from securities lending). The Adviser cannot discontinue this waiver prior to its expiration. This agreement is not subject to recapture by the Adviser.

For the fiscal year ended April 30, 2015, the Adviser waived fees and/or paid Fund expenses for each Fund in the following amounts:

DWA Basic Materials Momentum Portfolio	$	82,563
DWA Consumer Cyclicals Momentum Portfolio		127,515
DWA Consumer Staples Momentum Portfolio		102,091
DWA Energy Momentum Portfolio		290,380
DWA Financial Momentum Portfolio		94,304
DWA Healthcare Momentum Portfolio		88,691
DWA Industrials Momentum Portfolio		48,520
DWA Technology Momentum Portfolio		104,640
DWA Utilities Momentum Portfolio		83,320
NASDAQ Internet Portfolio		119

The Expense Agreement provides that the fees waived or expenses borne by the Adviser are subject to recapture by the Adviser for up to three years from the date the fee was waived 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 Expense Agreement does not apply to NASDAQ Internet Portfolio.

For the following Funds, the amounts available for potential future recapture by the Adviser under the Expense Agreement and the expiration schedule at April 30, 2015 are as follows:

	Total Potential Recapture Amounts		Potential Recapture Amounts Expiring
			4/30/16		4/30/17		4/30/18
DWA Basic Materials Momentum Portfolio	$	161,565	$	46,379	$	32,772	$	82,414
DWA Consumer Cyclicals Momentum Portfolio		276,171		76,493		72,285		127,393
DWA Consumer Staples Momentum Portfolio		224,106		63,480		58,654		101,972
DWA Energy Momentum Portfolio		321,854		31,818		—		290,036
DWA Financial Momentum Portfolio		247,098		83,041		69,854		94,203
DWA Healthcare Momentum Portfolio		168,246		41,317		38,353		88,576
DWA Industrials Momentum Portfolio		161,045		82,100		30,573		48,372
DWA Technology Momentum Portfolio		237,153		72,589		60,072		104,492
DWA Utilities Momentum Portfolio		208,827		71,758		53,817		83,252

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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 Funds are not charged any fees pursuant to the Distribution Agreement. The Distributor is an affiliate of the Adviser.

The Adviser has entered into a licensing agreement for each Fund with the following entities (each, a “Licensor”):

Full Name	Licensor
DWA Basic Materials Momentum Portfolio	Dorsey Wright & Associates, Inc.
DWA Consumer Cyclicals Momentum Portfolio	Dorsey Wright & Associates, Inc.
DWA Consumer Staples Momentum Portfolio	Dorsey Wright & Associates, Inc.
DWA Energy Momentum Portfolio	Dorsey Wright & Associates, Inc.
DWA Financial Momentum Portfolio	Dorsey Wright & Associates, Inc.
DWA Healthcare Momentum Portfolio	Dorsey Wright & Associates, Inc.
DWA Industrials Momentum Portfolio	Dorsey Wright & Associates, Inc.
DWA Technology Momentum Portfolio	Dorsey Wright & Associates, Inc.
DWA Utilities Momentum Portfolio	Dorsey Wright & Associates, Inc.
NASDAQ Internet Portfolio	NASDAQ OMX Group, Inc.

Each Underlying Index name trademark is owned by its respective Licensor. These trademarks have been licensed to the Adviser for use by the Funds. Each Fund is entitled to use its Underlying Index pursuant to the Trust’s sub-licensing agreement with the Adviser. The Funds (except for NASDAQ Internet Portfolio) are required to pay the sub-licensing fees that are shown on the Statements of Operations. 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 the Funds.

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

Note 4. Investments in Affiliates

The Adviser is a wholly-owned subsidiary of Invesco Ltd., and therefore Invesco Ltd. is considered to be affiliated with the Funds. The table below shows DWA Financial Momentum Portfolio’s transactions in, and earnings from, its investment in affiliates for the fiscal year ended April 30, 2015.

DWA Financial Momentum Portfolio

	Value April 30, 2014		Purchases at Cost		Proceeds from Sales			Change in Unrealized Appreciation		Realized Gain		Value April 30, 2015		Dividend Income
Invesco Ltd.	$	1,316,326	$	1,241,767	$	(1,627,369	)	$	102,056	$	81,873	$	1,114,653	$	37,768

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 a 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.

Except for the Fund listed below, as of April 30, 2015, all of the securities in each Fund were valued based on Level 1 inputs (see the Schedules of Investments for security categories). The level assigned to the securities valuations may not be an indication of the risk or

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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.

	Investments in Securities
	Level 1		Level 2		Level 3		Total
DWA Healthcare Momentum Portfolio
Equity Securities	$	179,009,157	$	—	$	14,948	$	179,024,105

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, 2015 and 2014:

	2015		2014
	Ordinary Income		Ordinary Income
DWA Basic Materials Momentum Portfolio	$	881,072	$	855,864
DWA Consumer Cyclicals Momentum Portfolio		352,829		129,334
DWA Consumer Staples Momentum Portfolio		932,548		519,961
DWA Energy Momentum Portfolio		2,298,949		942,939
DWA Financial Momentum Portfolio		460,625		327,300
DWA Healthcare Momentum Portfolio		—		245,316
DWA Industrials Momentum Portfolio		407,957		341,196
DWA Technology Momentum Portfolio		406,069		65,769
DWA Utilities Momentum Portfolio		982,578		929,718

Tax Components of Net Assets at Fiscal Year-End:

	Undistributed Ordinary Income		Temporary Book/Tax Differences			Net Unrealized Appreciation (Depreciation)— Investment Securities		Capital Loss Carryforwards			Late-Year Ordinary/ Post-October Deferrals*			Shares of Beneficial Interest		Total Net Assets
DWA Basic Materials Momentum Portfolio	$	188,975	$	(14,263	)	$	3,438,457	$	(21,852,135	)	$	(4,290,047	)	$	100,611,111	$	78,082,098
DWA Consumer Cyclicals Momentum Portfolio		40,535		(12,342	)		6,408,234		(11,061,329	)		(1,695,414	)		102,783,199		96,462,883
DWA Consumer Staples Momentum Portfolio		114,036		(13,100	)		6,649,085		(8,553,360	)		(2,334,183	)		101,850,934		97,713,412
DWA Energy Momentum Portfolio		815,332		(16,393	)		12,198,898		(33,428,115	)		(33,585,432	)		237,193,393		183,177,683
DWA Financial Momentum Portfolio		100,805		(12,282	)		1,525,003		(11,257,410	)		(656,433	)		48,746,914		38,446,597
DWA Healthcare Momentum Portfolio**		—		(15,469	)		14,537,610		(53,587,034	)		(3,159,300	)		221,026,640		178,802,447
DWA Industrials Momentum Portfolio		142,201		(14,410	)		6,049,792		(45,676,431	)		(5,514,764	)		157,427,433		112,413,821
DWA Technology Momentum Portfolio**		—		(13,155	)		6,926,319		(33,151,124	)		(1,766,754	)		92,592,443		64,587,729
DWA Utilities Momentum Portfolio		138,353		(13,397	)		2,337,831		(14,660,946	)		(965,317	)		48,056,897		34,893,421
NASDAQ Internet Portfolio**		—		—			6,221,774		(7,423,170	)		(2,489,564	)		220,541,886		216,850,926

* Includes net capital losses incurred after October 31 (“Post-October Capital Losses”) and the combination of ordinary losses incurred after December 31 within the taxable year and specified losses incurred after October 31 within the taxable year (“Late-Year Ordinary Losses”), that are deemed to arise on the first business day of each Fund’s next taxable year.

** The DWA Healthcare Momentum Portfolio, DWA Technology Momentum Portfolio and NASDAQ Internet Portfolio incurred and will elect to defer Late-Year Ordinary Losses of $251,887, $32,375 and $305,444 and Post-October Capital Losses of $2,907,413, $1,734,379 and $2,184,120, respectively.

Capital loss carryforwards are calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforwards actually available for the Funds to utilize. Capital losses generated in years beginning after December 22, 2010 can be carried forward for an unlimited period, whereas previous losses expire in eight tax years. Capital losses with an expiration period may not be used to offset capital gains until all net capital losses without an expiration date have been utilized. Capital loss carryforwards with no expiration date will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The ability to utilize capital loss carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.

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The following table presents available capital loss carryforwards and expiration dates, for each Fund as of April 30, 2015:

									Post-effective/no expiration
	2016		2017		2018		2019		Short-Term		Long-Term		Total*		Expired
DWA Basic Materials Momentum Portfolio	$	205,528	$	3,783,798	$	4,534,904	$	2,521,492	$	9,481,610	$	1,324,803	$	21,852,135	$	—
DWA Consumer Cyclicals Momentum Portfolio		1,246,058		1,993,654		—		2,042,056		5,779,561		—		11,061,329		—
DWA Consumer Staples Momentum Portfolio		562,037		2,156,980		3,935,363		1,180,566		718,414		—		8,553,360		—
DWA Energy Momentum Portfolio		880,885		2,869,667		3,914,682		1,167,692		24,595,189		—		33,428,115		—
DWA Financial Momentum Portfolio		614,940		1,821,971		4,413,894		1,979,006		2,427,599		—		11,257,410		—
DWA Healthcare Momentum Portfolio		2,234,184		17,890,879		18,737,951		2,739,963		11,984,057		—		53,587,034		—
DWA Industrials Momentum Portfolio		1,476,057		6,525,387		21,245,288		2,746,746		13,682,953		—		45,676,431		—
DWA Technology Momentum Portfolio		2,465,875		8,220,697		7,658,564		3,016,840		11,789,148		—		33,151,124		—
DWA Utilities Momentum Portfolio		2,124,736		1,366,073		5,885,935		874,386		3,759,657		650,159		14,660,946		430,964
NASDAQ Internet Portfolio		—		—		3,360		74,863		4,425,721		2,919,226		7,423,170		—

* Capital loss carryforwards as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization.

Note 7. Investment Transactions

For the fiscal year ended April 30, 2015, the cost of securities purchased and proceeds from sales of securities (other than short-term securities, U.S. Treasury obligations, money market funds and in-kind transactions, if any) were as follows:

	Purchases		Sales
DWA Basic Materials Momentum Portfolio	$	76,170,749	$	75,424,412
DWA Consumer Cyclicals Momentum Portfolio		72,287,193		71,881,454
DWA Consumer Staples Momentum Portfolio		47,201,975		47,439,224
DWA Energy Momentum Portfolio		225,699,052		226,098,746
DWA Financial Momentum Portfolio		45,078,319		44,549,068
DWA Healthcare Momentum Portfolio		185,169,933		186,568,014
DWA Industrials Momentum Portfolio		157,096,431		158,297,566
DWA Technology Momentum Portfolio		100,856,702		97,233,910
DWA Utilities Momentum Portfolio		19,632,489		19,266,329
NASDAQ Internet Portfolio		86,003,338		92,688,388

For the fiscal year ended April 30, 2015, in-kind transactions associated with creations and redemptions were as follows:

	Cost of Securities Received		Value of Securities Delivered
DWA Basic Materials Momentum Portfolio	$	64,473,735	$	81,418,980
DWA Consumer Cyclicals Momentum Portfolio		74,539,272		32,007,545
DWA Consumer Staples Momentum Portfolio		76,873,684		24,344,439
DWA Energy Momentum Portfolio		116,036,767		98,140,397
DWA Financial Momentum Portfolio		31,022,740		32,795,025
DWA Healthcare Momentum Portfolio		161,791,247		112,978,451
DWA Industrials Momentum Portfolio		48,015,423		103,804,231
DWA Technology Momentum Portfolio		45,626,768		51,235,900
DWA Utilities Momentum Portfolio		11,735,596		18,923,774
NASDAQ Internet Portfolio		65,104,327		175,150,494

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

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At April 30, 2015, the aggregate cost and the net unrealized appreciation (depreciation) of investments for tax purposes were as follows:

	Gross Unrealized Appreciation		Gross Unrealized (Depreciation)			Net Unrealized Appreciation		Cost
DWA Basic Materials Momentum Portfolio	$	5,078,584	$	(1,640,127	)	$	3,438,457	$	74,754,698
DWA Consumer Cyclicals Momentum Portfolio		7,203,685		(795,451	)		6,408,234		90,172,604
DWA Consumer Staples Momentum Portfolio		9,079,987		(2,430,902	)		6,649,085		91,189,141
DWA Energy Momentum Portfolio		16,007,032		(3,808,134	)		12,198,898		171,207,381
DWA Financial Momentum Portfolio		2,620,019		(1,095,016	)		1,525,003		36,981,454
DWA Healthcare Momentum Portfolio		20,909,156		(6,371,546	)		14,537,610		164,486,495
DWA Industrials Momentum Portfolio		9,408,266		(3,358,474	)		6,049,792		106,501,369
DWA Technology Momentum Portfolio		7,749,243		(822,924	)		6,926,319		57,784,908
DWA Utilities Momentum Portfolio		2,939,244		(601,413	)		2,337,831		32,602,255
NASDAQ Internet Portfolio		23,255,920		(17,034,146	)		6,221,774		219,562,401

Note 8. Reclassification of Permanent Differences

Primarily as a result of differing book/tax treatment of in-kind transactions and expired capital loss carryforwards on April 30, 2015, 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, 2015, the reclassifications were as follows:

	Undistributed Net Investment Income (Loss)			Undistributed Net Realized Gain (Loss)			Shares of Beneficial Interest
DWA Basic Materials Momentum Portfolio	$	58,937		$	(10,865,142	)	$	10,806,205
DWA Consumer Cyclicals Momentum Portfolio		(5,698	)		(3,250,167	)		3,255,865
DWA Consumer Staples Momentum Portfolio		—			(2,694,512	)		2,694,512
DWA Energy Momentum Portfolio		603,641			(7,589,202	)		6,985,561
DWA Financial Momentum Portfolio		35,585			(3,861,946	)		3,826,361
DWA Healthcare Momentum Portfolio		336,687			(13,402,896	)		13,066,209
DWA Industrials Momentum Portfolio		—			(5,792,308	)		5,792,308
DWA Technology Momentum Portfolio		120,918			(8,627,745	)		8,506,827
DWA Utilities Momentum Portfolio		—			(2,997,578	)		2,997,578
NASDAQ Internet Portfolio		1,032,010			(26,979,180	)		25,947,170

Note 9. Trustees’ and Officer’s Fees

Trustees’ and Officer’s Fees include amounts accrued by the Funds to pay remuneration to the Independent Trustees and an Officer of the Trust. The Adviser, as a result of the unitary management fee, pays for such compensation for NASDAQ Internet Portfolio. The Trustee who is an “interested person” of the Trust does 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. Obligations under the Plan represent unsecured claims against the general assets of the Funds.

Note 10. Capital

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

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To the extent that the Funds permit transactions in exchange for Deposit Securities, each Fund may issue Shares in advance of receipt of Deposit Securities subject to various conditions, including a requirement to maintain on deposit with the Trust cash at least equal to 105% of the market value of the missing Deposit Securities. In accordance with the Trust’s Participant Agreement, Creation Units will be issued to an Authorized Participant, notwithstanding the fact that the corresponding Deposit Securities have not been received in part or in whole, in reliance on the undertaking of the Authorized Participant to deliver the missing Deposit Securities as soon as possible, which undertaking shall be secured by the Authorized Participant’s delivery and maintenance of collateral consisting of cash in the form of U.S. dollars in immediately available funds having a value (marked-to-market daily) at least equal to 105%, which the Adviser may change from time to time, of the value of the missing Deposit Securities.

Transactions in each Fund’s Shares are disclosed in detail in the Statements of Changes in Net Assets.

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.

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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 PowerShares DWA Basic Materials Momentum Portfolio, PowerShares DWA Consumer Cyclicals Momentum Portfolio, PowerShares DWA Consumer Staples Momentum Portfolio, PowerShares DWA Energy Momentum Portfolio, PowerShares DWA Financial Momentum Portfolio, PowerShares DWA Healthcare Momentum Portfolio, PowerShares DWA Industrials Momentum Portfolio, PowerShares DWA Technology Momentum Portfolio, PowerShares DWA Utilities Momentum Portfolio and PowerShares NASDAQ Internet Portfolio (each an individual portfolio of PowerShares Exchange-Traded Fund Trust, hereafter referred to as the “Funds”) at April 30, 2015, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, 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 Funds’ 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, 2015 by correspondence with the custodian and brokers, and the application of alternative auditing procedures where confirmations of security purchases have not been received, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

Chicago, IL

June 24, 2015

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Fees and Expenses

As a shareholder of a Fund of the PowerShares Exchange-Traded Fund Trust (excluding PowerShares NASDAQ Internet Portfolio), you incur advisory fees and other Fund expenses. As a shareholder of a Fund of the PowerShares NASDAQ Internet Portfolio, you incur a unitary management fee. In addition to the unitary management fee, a shareholder may pay distribution fees, if any, brokerage expenses, taxes, interest, litigation expenses and other extraordinary expenses (including acquired fund fees and expenses, if any). 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, 2015.

In addition to the fees and expenses which the PowerShares DWA Financial Momentum Portfolio (the “Portfolio”) bears directly, the Portfolio indirectly bears a pro rata share of the fees and expenses of the investment companies in which the Portfolio invests. The amount of fees and expenses incurred indirectly by the Portfolio will vary because the investment companies have varied expenses and fee levels and the Portfolio may own different proportions of the investment companies at different times. Estimated investment companies’ expenses are not expenses that are incurred directly by the Portfolio. They are expenses that are incurred directly by the investment companies and are deducted from the value of the investment companies the Portfolio invests in. The effect of the estimated investment companies’ expenses that the Portfolio bears indirectly are included in the Portfolio’s total returns.

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, expenses shown in the table do not include the expenses of the underlying funds, which are borne indirectly by a Fund. If transaction costs and indirect expenses were included, your costs would have been higher.

	Beginning Account Value November 1, 2014		Ending Account Value April 30, 2015		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During the Six-Month  Period(1)
PowerShares DWA Basic Materials Momentum Portfolio (PYZ)
Actual	$	1,000.00	$	996.06		0.60	%	$	2.97
Hypothetical (5% return before expenses)		1,000.00		1,021.82		0.60			3.01
PowerShares DWA Consumer Cyclicals Momentum Portfolio (PEZ)
Actual		1,000.00		1,102.73		0.60			3.13
Hypothetical (5% return before expenses)		1,000.00		1,021.82		0.60			3.01
PowerShares DWA Consumer Staples Momentum Portfolio (PSL)
Actual		1,000.00		1,058.33		0.60			3.06
Hypothetical (5% return before expenses)		1,000.00		1,021.82		0.60			3.01
PowerShares DWA Energy Momentum Portfolio (PXI)
Actual		1,000.00		937.22		0.61			2.93
Hypothetical (5% return before expenses)		1,000.00		1,021.77		0.61			3.06

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Fees and Expenses (continued)

	Beginning Account Value November 1, 2014		Ending Account Value April 30, 2015		Annualized Expense Ratio Based on the Six-Month Period		Expenses Paid During the Six-Month  Period(1)
PowerShares DWA Financial Momentum Portfolio (PFI)
Actual		1,000.00		1,028.43		0.60		3.02
Hypothetical (5% return before expenses)		1,000.00		1,021.82		0.60		3.01
PowerShares DWA Healthcare Momentum Portfolio (PTH)
Actual		1,000.00		1,091.36		0.60		3.11
Hypothetical (5% return before expenses)		1,000.00		1,021.82		0.60		3.01
PowerShares DWA Industrials Momentum Portfolio (PRN)
Actual		1,000.00		1,001.95		0.60		2.98
Hypothetical (5% return before expenses)		1,000.00		1,021.82		0.60		3.01
PowerShares DWA Technology Momentum Portfolio (PTF)
Actual		1,000.00		1,126.20		0.60		3.16
Hypothetical (5% return before expenses)		1,000.00		1,021.82		0.60		3.01
PowerShares DWA Utilities Momentum Portfolio (PUI)
Actual		1,000.00		972.03		0.60		2.93
Hypothetical (5% return before expenses)		1,000.00		1,021.82		0.60		3.01
PowerShares NASDAQ Internet Portfolio (PNQI)
Actual		1,000.00		1,059.34		0.60		3.06
Hypothetical (5% return before expenses)		1,000.00		1,021.82		0.60		3.01

⁽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, 2015. Expenses are calculated by multiplying the Fund’s annualized expense ratio by the average account value for the period, then multiplying the result by 181/365. Expense ratios for the most recent six-month period may differ from expense ratios based on the annualized data in the Financial Highlights.

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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 advisers.

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, 2015:

Federal Income Tax Information

	Qualified Dividend Income*			Dividends-Received Deduction*
DWA Basic Materials Momentum Portfolio		100	%		100	%
DWA Consumer Cyclicals Momentum Portfolio		100	%		100	%
DWA Consumer Staples Momentum Portfolio		100	%		100	%
DWA Energy Momentum Portfolio		100	%		100	%
DWA Financial Momentum Portfolio		100	%		100	%
DWA Healthcare Momentum Portfolio		0	%		0	%
DWA Industrials Momentum Portfolio		100	%		100	%
DWA Technology Momentum Portfolio		100	%		100	%
DWA Utilities Momentum 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.

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Trustees and Officers

The Independent Trustees 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, 2015.

Name, Address and Year of Birth 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 During the Past 5 Years
Ronn R. Bagge—1958 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	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).	120	None
Todd J. Barre—1957 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	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.	120	None
Marc M. Kole—1960 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Trustee	Since 2006	Retired. Formerly, Chief Financial Officer, Hope Network (social services) (2008-2012); Assistant Vice President and Controller, Priority Health (health insurance) (2005-2008); Senior Vice President of Finance, United Healthcare (2004-2005); Chief Accounting Officer, Senior Vice President of Finance, Oxford Health Plans (2000-2004); Audit Partner, Arthur Andersen LLP (1996-2000).	120	None
Yung Bong Lim—1964 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Trustee	Since 2013	Managing Partner, Residential Dynamics Group LLC (2008-Present); formerly, Managing Director, Citadel Investment Group, L.L.C. (1999-2007).	120	None
Philip M. Nussbaum—1961 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Trustee	Since 2003	Chairman, Performance Trust Capital Partners (2004-Present).	120	None

* This is the date the Independent 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, 2015, the “Fund Family” consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 67 portfolios advised by the Adviser.

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Trustees and Officers (continued)

Name, Address and Year of Birth 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 During the Past 5 Years
Gary R. Wicker—1961 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Trustee	Since 2013	Senior Vice President of Global Finance and Chief Financial Officer at RBC Ministries (publishing company) (2013-Present); formerly, Executive Vice President and Chief Financial Officer, Zondervan Publishing (A division of Harper Collins/NewsCorp) (2007-2012); Senior Vice President and Group Controller (2005-2006), Senior Vice President and Chief Financial Officer (2003-2004), Chief Financial Officer (2001-2003), Vice President, Finance and Controller (1999-2001) and Assistant Controller (1997-1999), divisions of The Thomson Corporation (information services provider).	120	None
Donald H. Wilson—1959 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Chairman of the Board and Trustee	Chairman since 2012; Trustee since 2006	Chairman, President and Chief Executive Officer, Community Financial Shares, Inc. and Community Bank—Wheaton/Glen Ellyn (subsidiary) (2013-Present); Chairman and Chief Executive Officer, Stone Pillar Advisors, 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).	120	None

* This is the date the Independent 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, 2015, the “Fund Family” consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 67 portfolios advised by the Adviser.

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Trustees and Officers (continued)

The Trustee who is an “interested person” (the “Non-Independent Trustee”) 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 the Non-Independent Trustee and the other directorships, if any, held by the Non-Independent Trustee are shown below.

Name, Address and Year of Birth of Non-Independent Trustee	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 Non-Independent Trustees	Other Directorships Held by Non-Independent Trustees During the Past 5 Years
Kevin M. Carome—1956 Invesco Ltd. Two Peachtree Pointe, 1555 Peachtree St., N.E., Suite 1800 Atlanta, GA 30309	Trustee	Since 2010	Senior Managing Director, Secretary and General Counsel, Invesco Ltd. (2006-Present); Director, Invesco Advisers, Inc. (2009-Present); Director, Invesco Finance PLC, INVESCO Funds Group, Inc., and Invesco Holding Company Limited; Director and Executive Vice President, Invesco Finance, Inc., Invesco Group Services, Inc., Invesco Investments (Bermuda) Ltd., Invesco North American Holdings, Inc., and IVZ, Inc. and Invesco Asset Management (Bermuda) Ltd.; Manager, Horizon Flight Works LLC; Director and Secretary, IVZ Bahamas Private Limited; formerly, Senior Vice President, Secretary and General Counsel, Invesco Advisers, 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.	120	None

* This is the date the Non-Independent 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, 2015, the Fund Complex consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 67 portfolios advised by the Adviser.

76

Trustees and Officers (continued)

Name, Address and Year of Birth of Executive Officers	Position(s) Held with Trust	Length of Time Served*	Principal Occupation(s) During Past 5 Years
Andrew Schlossberg—1974 Invesco Management Group, Inc. 11 Greenway Plaza, Suite 1000 Houston, TX 77046	President	Since 2009	President, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2009-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); Managing Director—U.S. Strategy and Marketing (2010-Present) and Principal Executive Officer (2015-Present), Invesco PowerShares Capital Management LLC; Managing Director, U.S. head of business strategy and chief marketing officer for Invesco Ltd. in the United States (2008-Present); and Senior Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser) (2009-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) and Director, Invesco Distributors, Inc. (2012-2015).
Peter Hubbard—1981 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Vice President	Since 2009	Vice President, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2009-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); 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).
David Warren—1957 Invesco Canada Ltd. 5140 Yonge Street Suite 800, Toronto, Ontario M2N 6X7	Vice President	Since 2009	Vice President, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2009-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); Managing Director—Chief Administrative Officer, Americas, Invesco PowerShares Capital Management LLC; Senior Vice President, Invesco Advisers, Inc. (2009-Present); Director, Executive Vice President and Chief Financial Officer, Invesco Inc. (2009-Present); Senior Vice President, Invesco Management Group, Inc. (2007-Present); Director, Executive Vice President and Chief Financial Officer, Invesco Canada Ltd. (formerly, Invesco Trimark Ltd.) and Chief Administrative Officer, North American Retail, Invesco Ltd. (2007-Present); Director, Invesco Canada Holdings Inc. (2002-Present), Invesco Corporate Class Inc., and Invesco Canada Fund Inc.; Director, Invesco Financial Services Ltd. and Trimark Investments Ltd. (2014-Present); formerly, Director, Executive Vice President and Chief Financial Officer, Invesco Canada Ltd. (formerly, Invesco Trimark Ltd.) (2000-2006).
Sheri Morris—1964 Invesco Management Group, Inc. 11 Greenway Plaza, Suite 1000 Houston, TX 77046	Vice President	Since 2012	Vice President, Treasurer and Principal Financial Officer, The Invesco Funds; Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser) (2009-Present) and Vice President, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2012-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); formerly, Treasurer, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust and PowerShares Actively Managed Exchange-Traded Fund Trust (2011-2013); Vice President, Invesco Aim Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc.; Assistant Vice President and Assistant Treasurer, The Invesco Funds and Assistant Vice President, Invesco Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc.

* This is the date the Officers began serving the Trust. Each Officer serves an indefinite term, until his or her successor is elected.

77

Trustees and Officers (continued)

Name, Address and Year of Birth of Executive Officers	Position(s) Held with Trust	Length of Time Served*	Principal Occupation(s) During Past 5 Years
Rudolf E. Reitmann—1971 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Vice President	Since 2013	Vice President, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2013-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); Head of Global Exchange Traded Funds Operations, Invesco PowerShares Capital Management LLC (2013-Present).
Daniel E. Draper—1968 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Vice President	Since 2013	Senior Vice President, Invesco Distributors, Inc. (2014-Present); Vice President, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2013-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); Managing Director, Invesco PowerShares Capital Management LLC (2013-Present); formerly, Managing Director, Credit Suisse Asset Management (2010–2013) and Lyxor Asset Management/Societe Generale (2007-2010).
Steven M. Hill—1964 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Vice President and Treasurer	Since 2013	Vice President and Treasurer of PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2013-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); Head of Global ETF Administration, Invesco PowerShares Capital Management LLC (2011-Present); Principal Financial and Accounting Officer—Investment Pools, Invesco PowerShares Capital Management LLC (2015-Present); formerly, Senior Managing Director and Chief Financial Officer, Destra Capital Management LLC and its subsidiaries (2010-2011); Chief Financial Officer, Destra Investment Trust and Destra Investment Trust II (2010-2011); Senior Managing Director, Claymore Securities, Inc. (2003-2010); and Chief Financial Officer, Claymore sponsored mutual funds (2003-2010).
Christopher Joe—1969 Invesco Management Group, Inc. 11 Greenway Plaza, Suite 1000 Houston, TX 77046	Chief Compliance Officer	Since 2012	Deputy Chief Compliance Officer of Invesco Advisers, Inc. (2014-Present); Chief Compliance Officer of PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2012-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); U.S. Compliance Director, Invesco, Ltd. (2006-Present); formerly, Chief Compliance Officer, Invesco Investment Advisers, LLC (registered investment adviser) (2010-2013).
Anna Paglia—1974 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Secretary	Since 2011	Secretary, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2011-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); Head of Legal, Invesco PowerShares Capital Management LLC (2010-Present); formerly, Partner, K&L Gates LLP (formerly, Bell Boyd & Lloyd LLP) (2007-2010); Associate Counsel at Barclays Global Investors Ltd. (2004-2006).

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 an indefinite term, until his or her successor is elected.

78

Board Considerations Regarding Continuation of Investment Advisory Agreement

At a meeting held on April 16, 2015, the Board of Trustees of the PowerShares Exchange-Traded Fund Trust (the “Trust”), including the Independent Trustees, approved the continuation of the Investment Advisory Agreement between Invesco PowerShares Capital Management LLC (the “Adviser”) and the Trust for the following 51 series (each, a “Fund” and collectively, the “Funds”):

PowerShares Aerospace & Defense Portfolio

PowerShares BuyBack Achievers™ Portfolio

PowerShares Cleantech™ Portfolio

PowerShares Dividend Achievers^TM Portfolio

PowerShares DWA Momentum Portfolio

PowerShares DWA Basic Materials Momentum Portfolio

PowerShares DWA Consumer Cyclicals Momentum Portfolio

PowerShares DWA Consumer Staples Momentum Portfolio

PowerShares DWA Energy Momentum Portfolio

PowerShares DWA Financial Momentum Portfolio

PowerShares DWA Healthcare Momentum Portfolio

PowerShares DWA Industrials Momentum Portfolio

PowerShares DWA NASDAQ Momentum Portfolio

PowerShares DWA Technology Momentum Portfolio

PowerShares DWA Utilities Momentum Portfolio

PowerShares Dynamic Biotechnology & Genome Portfolio

PowerShares Dynamic Building & Construction Portfolio

PowerShares Dynamic Energy Exploration & Production Portfolio

PowerShares Dynamic Food & Beverage Portfolio

PowerShares Dynamic Large Cap Growth Portfolio

PowerShares Dynamic Large Cap Value Portfolio

PowerShares Dynamic Leisure and Entertainment Portfolio

PowerShares Dynamic Market Portfolio

PowerShares Dynamic Media Portfolio

PowerShares Dynamic Networking Portfolio

PowerShares Dynamic Oil & Gas Services Portfolio

PowerShares Dynamic Pharmaceuticals Portfolio

PowerShares Dynamic Retail Portfolio

PowerShares Dynamic Semiconductors Portfolio

PowerShares Dynamic Software Portfolio

PowerShares Financial Preferred Portfolio

PowerShares FTSE RAFI US 1000 Portfolio

PowerShares FTSE RAFI US 1500 Small-Mid Portfolio

PowerShares Fundamental Pure Large Core Portfolio

PowerShares Fundamental Pure Large Growth Portfolio

PowerShares Fundamental Pure Large Value Portfolio

PowerShares Fundamental Pure Mid Core Portfolio

PowerShares Fundamental Pure Mid Growth Portfolio

PowerShares Fundamental Pure Mid Value Portfolio

PowerShares Fundamental Pure Small Core Portfolio

PowerShares Fundamental Pure Small Growth Portfolio

PowerShares Fundamental Pure Small Value Portfolio

PowerShares Global Listed Private Equity Portfolio

PowerShares Golden Dragon China Portfolio

PowerShares High Yield Equity Dividend Achievers ^TM Portfolio

PowerShares International Dividend Achievers^TM Portfolio

PowerShares S&P 500^® High Quality Portfolio

PowerShares Water Resources Portfolio

PowerShares WilderHill Clean Energy Portfolio

PowerShares WilderHill Progressive Energy Portfolio

PowerShares Zacks Micro Cap Portfolio

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 a Fund grows, (v) whether fee levels reflect any possible economies of scale for the benefit of Fund shareholders, (vi) comparisons of services rendered to and amounts paid by 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 staffing, including operational support 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 and/or oversight of execution of portfolio transactions on behalf of the Funds. The Trustees also reviewed information on the performance of the Funds and their underlying indexes for the one-year, three-year, five-year, ten-year and since-inception periods ended December 31, 2014, as applicable, including reports for each of those periods on the correlation and tracking error between each Fund’s performance and the performance of its underlying index, as well as the Adviser’s analysis of the tracking error between PowerShares Global Listed Private Equity Portfolio and its underlying index. In reviewing the tracking error report, the Trustees considered information provided by Ibbotson Associates, a consultant to the Independent Trustees, with respect to general expected tracking error ranges and various explanations for any tracking error. The Trustees noted that for each applicable period the

79

Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)

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, effort and resources 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 advisory fee and net expense ratio, as compared to information compiled by the Adviser from Lipper Inc. databases on the advisory fees and net expense ratios of comparable exchange-traded funds (“ETFs”), open-end (non-ETF) index funds and open-end (non-ETF) actively-managed funds. The Trustees noted that the annual advisory fee charged to each Fund is:

— 0.50% of the Fund’s average daily net assets for each Fund other than PowerShares Dividend Achievers™ Portfolio, PowerShares High Yield Equity Dividend Achievers™ Portfolio, PowerShares International Dividend Achievers™ Portfolio, PowerShares FTSE RAFI US 1000 Portfolio, PowerShares FTSE RAFI US 1500 Small-Mid Portfolio, PowerShares Fundamental Pure Large Core Portfolio, PowerShares Fundamental Pure Large Growth Portfolio, PowerShares Fundamental Pure Large Value Portfolio, PowerShares Fundamental Pure Mid Core Portfolio, PowerShares Fundamental Pure Mid Growth Portfolio, PowerShares Fundamental Pure Mid Value Portfolio, PowerShares Fundamental Pure Small Core Portfolio, PowerShares Fundamental Pure Small Growth Portfolio, PowerShares Fundamental Pure Small Value Portfolio and PowerShares S&P 500^® High Quality Portfolio;

— 0.40% of the Fund’s average daily net assets for each of PowerShares Dividend Achievers™ Portfolio, PowerShares High Yield Equity Dividend Achievers™ Portfolio and PowerShares International Dividend Achievers™ Portfolio; and

— 0.29% of the Fund’s average daily net assets for each of PowerShares FTSE RAFI US 1000 Portfolio, PowerShares FTSE RAFI US 1500 Small-Mid Portfolio, PowerShares Fundamental Pure Large Core Portfolio¹, PowerShares Fundamental Pure Large Growth Portfolio, PowerShares Fundamental Pure Large Value Portfolio, PowerShares Fundamental Pure Mid Core Portfolio¹, PowerShares Fundamental Pure Mid Growth Portfolio, PowerShares Fundamental Pure Mid Value Portfolio, PowerShares Fundamental Pure Small Core Portfolio¹, PowerShares Fundamental Pure Small Growth Portfolio, PowerShares Fundamental Pure Small Value Portfolio and PowerShares S&P 500^® High Quality Portfolio.

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, 2016, as set forth below:

— 0.60%, excluding interest expenses, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses, for each of PowerShares DWA NASDAQ Momentum Portfolio and PowerShares Dynamic Market Portfolio;

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

— 0.39%, excluding interest expenses, offering costs, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses, for each of PowerShares FTSE RAFI US 1000 Portfolio, PowerShares FTSE RAFI US 1500 Small-Mid Portfolio, PowerShares Fundamental Pure Large Core Portfolio², PowerShares Fundamental Pure Large Growth Portfolio, PowerShares Fundamental Pure Large Value Portfolio, PowerShares Fundamental Pure Mid Core Portfolio², PowerShares Fundamental Pure Mid Growth Portfolio, PowerShares Fundamental Pure Mid Value Portfolio, PowerShares Fundamental Pure Small Core Portfolio², PowerShares Fundamental Pure Small Growth Portfolio and PowerShares Fundamental Pure Small Value Portfolio;

¹  The annual management fee for PowerShares Fundamental Pure Large Core Portfolio, PowerShares Fundamental Pure Mid Core Portfolio and PowerShares Fundamental Pure Small Core Portfolio will be reduced to 0.25% of each Fund’s average daily net assets, effective May 22, 2015. Pure Small Value Portfolio and PowerShares S&P 500^® High Quality Portfolio.

²  The Expense Cap for PowerShares Fundamental Pure Large Core Portfolio, PowerShares Fundamental Pure Mid Core Portfolio and PowerShares Fundamental Pure Small Core Portfolio will be reduced such that annual operating expenses of each Fund will not exceed 0.25% of its average daily net assets, effective May 22, 2015.

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Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)

— 0.29%, excluding interest expenses, offering costs, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses, for PowerShares S&P 500^® High Quality Portfolio;

— 0.60%, excluding interest expenses, offering costs, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses, for PowerShares DWA Basic Materials Momentum Portfolio, PowerShares DWA Consumer Cyclicals Momentum Portfolio, PowerShares DWA Consumer Staples Momentum Portfolio, PowerShares DWA Energy Momentum Portfolio, PowerShares DWA Financial Momentum Portfolio, PowerShares DWA Healthcare Momentum Portfolio, PowerShares DWA Industrials Momentum Portfolio, PowerShares DWA Technology Momentum Portfolio and PowerShares DWA Utilities Momentum Portfolio; and

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

The Trustees noted that the Adviser represented that it does not serve as the investment adviser to any clients, other than other ETFs also overseen by the Trustees, with comparable investment strategies as the Funds, but that the Adviser provides sub-advisory services to clients with comparable investment strategies as certain of the Funds. The Trustees further noted the Adviser’s explanation with respect to the sub-advisory fees it receives for such services in comparison to the advisory fees charged to the Funds. The Trustees noted that the advisory fees for certain Funds were equal to or lower than the median advisory fees of their ETF and open-end index peer funds as illustrated in the table below. The Trustees also noted that the advisory fees for all of the Funds were lower than the median advisory fees of their open-end actively-managed peer funds.

PowerShares Fund	Equal to/Lower than ETF Median	Equal to/Lower than Open-End Index Fund Median3	Equal to/Lower than Open-End Active Fund Median
PowerShares Aerospace & Defense Portfolio		N/A	X
PowerShares Buyback Achievers Portfolio			X
PowerShares Cleantech Portfolio		N/A	X
PowerShares Dividend Achievers Portfolio		X	X
PowerShares DWA Basic Materials Momentum Portfolio		N/A	X
PowerShares DWA Consumer Cyclicals Momentum Portfolio		N/A	X
PowerShares DWA Consumer Staples Momentum Portfolio	X	N/A	X
PowerShares DWA Energy Momentum Portfolio		N/A	X
PowerShares DWA Financial Momentum Portfolio		N/A	X
PowerShares DWA Healthcare Momentum Portfolio		N/A	X
PowerShares DWA Industrials Momentum Portfolio		N/A	X
PowerShares DWA Momentum Portfolio		X	X
PowerShares DWA NASDAQ Momentum Portfolio		X	X
PowerShares DWA Technology Momentum Portfolio			X
PowerShares DWA Utilities Momentum Portfolio			X
PowerShares Dynamic Biotechnology & Genome Portfolio		N/A	X
PowerShares Dynamic Building & Construction Portfolio		N/A	X
PowerShares Dynamic Energy Exploration & Production Portfolio		N/A	X
PowerShares Dynamic Food & Beverage Portfolio	X	N/A	X
PowerShares Dynamic Large Cap Growth Portfolio			X
PowerShares Dynamic Large Cap Value Portfolio			X

³  The information provided by the Adviser indicated that certain Funds did not have open-end index fund peers. Those Funds have been designated with an “N/A” for not available.

81

Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)

PowerShares Fund	Equal to/Lower than ETF Median	Equal to/Lower than Open-End Index Fund Median3	Equal to/Lower than Open-End Active Fund Median
PowerShares Dynamic Leisure and Entertainment Portfolio		N/A	X
PowerShares Dynamic Market Portfolio			X
PowerShares Dynamic Media Portfolio		N/A	X
PowerShares Dynamic Networking Portfolio			X
PowerShares Dynamic Oil & Gas Services Portfolio		N/A	X
PowerShares Dynamic Pharmaceuticals Portfolio		N/A	X
PowerShares Dynamic Retail Portfolio		N/A	X
PowerShares Dynamic Semiconductors Portfolio			X
PowerShares Dynamic Software Portfolio			X
PowerShares Financial Preferred Portfolio	X	N/A	X
PowerShares FTSE RAFI US 1000 Portfolio			X
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio	X		X
PowerShares Fundamental Pure Large Core Portfolio		X	X
PowerShares Fundamental Pure Large Growth Portfolio		X	X
PowerShares Fundamental Pure Large Value Portfolio			X
PowerShares Fundamental Pure Mid Core Portfolio			X
PowerShares Fundamental Pure Mid Growth Portfolio	X	X	X
PowerShares Fundamental Pure Mid Value Portfolio		X	X
PowerShares Fundamental Pure Small Core Portfolio	X		X
PowerShares Fundamental Pure Small Growth Portfolio		X	X
PowerShares Fundamental Pure Small Value Portfolio	X	X	X
PowerShares Global Listed Private Equity Portfolio	X	N/A	X
PowerShares Golden Dragon China Portfolio	X	N/A	X
PowerShares High Yield Equity Dividend Achievers Portfolio		X	X
PowerShares International Dividend Achievers Portfolio	X	X	X
PowerShares S&P 500 High Quality Portfolio			X
PowerShares Water Resources Portfolio		N/A	X
PowerShares WilderHill Clean Energy Portfolio		N/A	X
PowerShares WilderHill Progressive Energy Portfolio		N/A	X
PowerShares Zacks Micro Cap Portfolio			X

The Trustees determined that the advisory fees were reasonable, noting the nature of the indexes, the distinguishing factors of the Funds, and the administrative, operational and management oversight costs for the Adviser. The Trustees noted that the net expense ratios for certain Funds were equal to or lower than the median net expense ratios of their ETF and open-end index peer funds as illustrated in the table below. The Trustees also noted that the net expense ratios for all of the Funds were lower than the median net expense ratios of their open-end actively-managed peer funds.

PowerShares Fund	Equal to/Lower than ETF Median	Equal to/Lower than Open-End Index Fund Median	Equal to/Lower than Open-End Active Fund Median
PowerShares Aerospace & Defense Portfolio		N/A	X
PowerShares Buyback Achievers Portfolio			X
PowerShares Cleantech Portfolio		N/A	X
PowerShares Dividend Achievers Portfolio		X	X

82

Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)

PowerShares Fund	Equal to/Lower than ETF Median	Equal to/Lower than Open-End Index Fund Median	Equal to/Lower than Open-End Active Fund Median
PowerShares DWA Basic Materials Momentum Portfolio		N/A	X
PowerShares DWA Consumer Cyclicals Momentum Portfolio		N/A	X
PowerShares DWA Consumer Staples Momentum Portfolio		N/A	X
PowerShares DWA Energy Momentum Portfolio		N/A	X
PowerShares DWA Financial Momentum Portfolio		N/A	X
PowerShares DWA Healthcare Momentum Portfolio		N/A	X
PowerShares DWA Industrials Momentum Portfolio		N/A	X
PowerShares DWA Momentum Portfolio		X	X
PowerShares DWA NASDAQ Momentum Portfolio		X	X
PowerShares DWA Technology Momentum Portfolio		X	X
PowerShares DWA Utilities Momentum Portfolio		X	X
PowerShares Dynamic Biotechnology & Genome Portfolio		N/A	X
PowerShares Dynamic Building & Construction Portfolio		N/A	X
PowerShares Dynamic Energy Exploration & Production Portfolio		N/A	X
PowerShares Dynamic Food & Beverage Portfolio		N/A	X
PowerShares Dynamic Large Cap Growth Portfolio			X
PowerShares Dynamic Large Cap Value Portfolio			X
PowerShares Dynamic Leisure and Entertainment Portfolio		N/A	X
PowerShares Dynamic Market Portfolio			X
PowerShares Dynamic Media Portfolio		N/A	X
PowerShares Dynamic Networking Portfolio		X	X
PowerShares Dynamic Oil & Gas Services Portfolio		N/A	X
PowerShares Dynamic Pharmaceuticals Portfolio		N/A	X
PowerShares Dynamic Retail Portfolio		N/A	X
PowerShares Dynamic Semiconductors Portfolio		X	X
PowerShares Dynamic Software Portfolio		X	X
PowerShares Financial Preferred Portfolio	X	N/A	X
PowerShares FTSE RAFI US 1000 Portfolio			X
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio		X	X
PowerShares Fundamental Pure Large Core Portfolio		X	X
PowerShares Fundamental Pure Large Growth Portfolio		X	X
PowerShares Fundamental Pure Large Value Portfolio			X
PowerShares Fundamental Pure Mid Core Portfolio		X	X
PowerShares Fundamental Pure Mid Growth Portfolio	X	X	X
PowerShares Fundamental Pure Mid Value Portfolio		X	X
PowerShares Fundamental Pure Small Core Portfolio		X	X
PowerShares Fundamental Pure Small Growth Portfolio		X	X
PowerShares Fundamental Pure Small Value Portfolio		X	X
PowerShares Global Listed Private Equity Portfolio		N/A	X
PowerShares Golden Dragon China Portfolio	X	N/A	X
PowerShares High Yield Equity Dividend Achievers Portfolio		X	X
PowerShares International Dividend Achievers Portfolio	X	X	X

83

Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)

PowerShares Fund	Equal to/Lower than ETF Median	Equal to/Lower than Open-End Index Fund Median	Equal to/Lower than Open-End Active Fund Median
PowerShares S&P 500 High Quality Portfolio	X	X	X
PowerShares Water Resources Portfolio		N/A	X
PowerShares WilderHill Clean Energy Portfolio		N/A	X
PowerShares WilderHill Progressive Energy Portfolio		N/A	X
PowerShares Zacks Micro Cap Portfolio			X

The Trustees noted that a significant component of the non-advisory fee expenses was the license fees paid by the Funds, and noted 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.

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 overall profitability as well as the estimated profitability to the Adviser from its relationship to each Fund. The Trustees concluded that the overall and estimated profitability to the Adviser was not unreasonable.

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 DWA NASDAQ Momentum 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.

84

Board Considerations Regarding Continuation of Investment Advisory Agreement

At a meeting held on April 16, 2015, the Board of Trustees of the PowerShares Exchange-Traded Fund Trust (the “Trust”), including the Independent Trustees, 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 together, the “Funds”).

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 a Fund grows, (v) whether fee levels reflect any possible economies of scale for the benefit of Fund shareholders, (vi) comparisons of services rendered to and amounts paid by 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 staffing, including operational support 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 their underlying indexes for the one-year, three-year, five-year and since-inception (June 12, 2008 for PowerShares NASDAQ Internet Portfolio and December 20, 2007 for PowerShares S&P 500 BuyWrite Portfolio) periods ended December 31, 2014, including reports for each of those periods on the correlation and tracking error between each Fund’s performance and the performance of its underlying index, as well as the Adviser’s analysis of the tracking error between each Fund and its underlying index. In reviewing the tracking error report, the Trustees considered information provided by Ibbotson Associates, a consultant to the Independent Trustees, with respect to general expected tracking error ranges and various explanations for any tracking error. The Trustees noted that for each period, 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, effort and resources 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 net expense ratio and unitary advisory fee, as compared to information compiled by the Adviser from Lipper Inc. databases on the net expense ratios of comparable exchange-traded funds (“ETFs”), open-end (non-ETF) index funds and open-end (non-ETF) 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, litigation expenses and other extraordinary expenses.

The Trustees noted that the Adviser represented that it does not serve as an investment adviser to any clients, other than other ETFs also overseen by the Trustees, with comparable investment strategies as the Funds. The Trustees noted that PowerShares NASDAQ Internet Portfolio’s net expense ratio was higher than the median net expense ratio of its ETF peer funds, but was lower than the median net expense ratios of its open-end index peer funds and open-end actively-managed peer funds. The Trustees noted that PowerShares S&P 500 BuyWrite Portfolio’s net expense ratio was lower than the median net 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 nature of the indexes, the distinguishing factors of the Funds and the 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

85

Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)

Adviser on its overall profitability as well as the estimated profitability to the Adviser from its relationship to each Fund. The Trustees concluded that the overall and estimated profitability to the Adviser was not unreasonable.

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 and expense ratio. The Trustees noted that any reduction in fixed costs associated with the management of the Funds would be enjoyed by the Adviser, but a unitary fee provides a level of certainty in expenses for the Funds. 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.

The Trustees noted that the Adviser had not identified any further benefits that it derived from its relationships 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.

86

Proxy Voting Policies and Procedures

A description of the Trust’s 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 each Fund 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 Trust files its complete schedule of portfolio holdings for the Funds 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, DC; information on the operation of the Public Reference Room may be obtained by calling (800) SEC-0330.

Frequency Distribution of Discounts and Premiums

A table showing the number of days the market price of each Fund’s shares was greater than the Fund’s net asset value, and the number of days it was less than the Fund’s net asset value (i.e., premium or discount) for the most recently completed calendar year, and the calendar quarters since that year end (or the life of the Fund, if shorter) may be found at the Fund’s website at www.invescopowershares.com.

©2015 Invesco PowerShares Capital Management LLC			P-PS-AR-3
3500 Lacey Road, Suite 700 Downers Grove, IL 60515
invescopowershares.com    800.983.0903		@PowerShares

Item 2. Code of Ethics.

The Registrant has adopted a Code of Ethics that applies to the Registrant’s principal executive officer and principal financial officer. This Code is filed as an exhibit to this report on Form N-CSR under Item 12(a)(1). No substantive amendments to this Code were made during the reporting period. There were no waivers for the fiscal year ended April 30, 2015.

Item 3. Audit Committee Financial Expert.

The Registrant’s Board of Trustees (the “Board”) has determined that the Registrant has three “audit committee financial experts” serving on its audit committee: Mr. Marc M. Kole, Mr. Gary R. Wicker and Mr. Donald H. Wilson. Each of these audit committee members is “independent,” meaning that he is not an “interested person” of the Registrant (as that term is defined in Section 2(a)(19) of the Investment Company Act of 1940, as amended) and he does not accept any consulting, advisory, or other compensatory fee from the Registrant (except in his capacity as a Board or committee member).

An “audit committee financial expert” is not an “expert” for any purpose, including for purposes of Section 11 of the Securities Act of 1933, as a result of being designated as an “audit committee financial expert.” Further, the designation of a person as an “audit committee financial expert” does not mean that person has any greater duties, obligations, or liability than those imposed on a person without the “audit committee financial expert” designation. Similarly, the designation of a person as an “audit committee financial expert” does not affect the duties, obligations, or liability of any other member of the audit committee or Board of trustees.

Item 4. Principal Accountant Fees and Services.

(a) to (d)

PricewaterhouseCoopers LLP (“PwC”) billed the Registrant aggregate fees for services rendered to the Registrant for the last two fiscal years as follows:

	Fees Billed by PwC for Services Rendered to the Registrant for fiscal year end 2015	(e)(2) Percentage of Services Approved for fiscal year end 2015 Pursuant to Waiver of Pre-Approval Requirement(1)	Fees Billed by PwC for Services Rendered to the Registrant for fiscal year end 2014	(e)(2) Percentage of Services Approved for fiscal year end 2014 Pursuant to Waiver of Pre- Approval Requirement(1)
Audit Fees	$ 702,453	N/A	$ 671,700	N/A
Audit-Related Fees	$0	0%	$0	0%
Tax Fees(2)	$400,749	0%	$408,510	0%
All Other Fees	$0	0%	$0	0%
Total Fees	$1,103,202	0%	$1,080,210	0%

(1) For the provision of non-audit services, the pre-approval requirement is waived pursuant to a de minimis exception if (i) such services were not recognized as non-audit services by the Registrant at the time of engagement,

(ii) the aggregate amount of all such services provided is no more than 5% of the aggregate audit and non-audit fees paid by the Registrant during the fiscal year in which the services are provided; and (iii) such services are promptly brought to the attention of the Registrant’s Audit Committee and approved by the Registrant’s Audit Committee prior to the completion of the audit.

(2) Tax fees for the fiscal year ended April 30, 2015 include fees billed for reviewing tax returns, 2014 excise tax returns and excise tax distributions calculations. Tax fees for the fiscal year ended April 30, 2014 included fees billed for reviewing tax returns, 2013 excise tax returns and excise tax distribution calculations in addition to preparing the final tax returns for the two liquidated portfolios of the Registrant.

(e) (1) Audit Committee Pre Approval Policies and Procedures

PRE-APPROVAL OF AUDIT AND NON-AUDIT SERVICES

POLICIES AND PROCEDURES

As Adopted by the Audit Committee of

the PowerShares Funds (the “Funds”)

Adopted June 26, 2009, amended March 12, 2015

Statement of Principles

Under the Sarbanes-Oxley Act of 2002 and rules adopted by the Securities and Exchange Commission (“SEC”) (“Rules”), the Audit Committee of the Funds’ (the “Audit Committee”) Board of Trustees (the “Board”) is responsible for the appointment, compensation and oversight of the work of independent accountants (an “Auditor”). As part of this responsibility and to assure that the Auditor’s independence is not impaired, the Audit Committee pre-approves the audit and non-audit services provided to the Funds by each Auditor, as well as all non-audit services provided by the Auditor to the Funds’ investment adviser and to affiliates of the adviser that provide ongoing services to the Funds (“Service Affiliates”) if the services directly impact the Funds’ operations or financial reporting. The SEC Rules also specify the types of services that an Auditor may not provide to its audit client. The following policies and procedures comply with the requirements for pre-approval and provide a mechanism by which management of the Funds may request and secure pre-approval of audit and non-audit services in an orderly manner with minimal disruption to normal business operations.

Proposed services either may be pre-approved without consideration of specific case-by-case services by the Audit Committee (“general pre-approval”) or require the specific pre-approval of the Audit Committee (“specific pre-approval”). As set forth in these policies and procedures, unless a type of service has received general pre-approval, it will require specific pre-approval by the Audit Committee. Additionally, any fees exceeding 110% of estimated pre-approved fee levels provided at the time the service was pre-approved will also require specific approval by the Audit Committee before payment is made. The Audit Committee will also consider the impact of additional fees on the Auditor’s independence when determining whether to approve any additional fees for previously pre-approved services.

The Audit Committee will annually review and generally pre-approve the services that may be provided by each Auditor without obtaining specific pre-approval from the Audit Committee. The term of any general pre-approval runs from the date of such pre-approval through June 30th of the following year, unless the Audit Committee considers a different period and states otherwise. The Audit Committee will add to or subtract from the list of general pre-approved services from time to time, based on subsequent determinations.

The purpose of these policies and procedures is to set forth the guidelines to assist the Audit Committee in fulfilling its responsibilities.

Delegation

The Chairman of the Audit Committee (or, in his or her absence, any member of the Audit Committee) may grant specific pre-approval for non-prohibited services. All such delegated pre-approvals shall be presented to the Audit Committee no later than the next Audit Committee meeting.

Audit Services

The annual Audit services engagement terms will be subject to specific pre-approval of the Audit Committee. Audit services include the annual financial statement audit and other procedures such as tax provision work that is required to be performed by the independent auditor to be able to form an opinion on the Funds’ financial statements. The Audit Committee will obtain, review and consider sufficient information concerning the proposed Auditor to make a reasonable evaluation of the Auditor’s qualifications and independence.

In addition to the annual Audit services engagement, the Audit Committee may grant either general or specific pre-approval of other Audit services, which are those services that only the independent auditor reasonably can provide. Other Audit services may include services such as issuing consents for the inclusion of audited financial statements with SEC registration statements, periodic reports and other documents filed with the SEC or other documents issued in connection with securities offerings.

Non-Audit Services

The Audit Committee may provide either general or specific pre-approval of any non-audit services to the Funds and its Service Affiliates if the Audit Committee believes that the provision of the service will not impair the independence of the Auditor, is consistent with the SEC’s Rules on auditor independence, and otherwise conforms to the Audit Committee’s general principles and policies as set forth herein.

Audit-Related Services

“Audit-related services” are assurance and related services that are reasonably related to the performance of the audit or review of the Funds’ financial statements or that are traditionally performed by the independent auditor. Audit-related services include, among others, accounting consultations related to accounting, financial reporting or disclosure matters not classified as “Audit services”; and assistance with understanding and implementing new accounting and financial reporting guidance from rulemaking authorities.

Tax Services

“Tax services” include, but are not limited to, the review and signing of the Funds’ federal tax returns, the review of required distributions by the Funds and consultations regarding tax matters such as the tax treatment of new investments or the impact of new regulations. The Audit Committee will scrutinize carefully the retention of the Auditor in connection with a transaction

initially recommended by the Auditor, the major business purpose of which may be tax avoidance or the tax treatment of which may not be supported in the Internal Revenue Code and related regulations. The Audit Committee will consult with the Funds’ Treasurer (or his or her designee) and may consult with outside counsel or advisors as necessary to ensure the consistency of Tax services rendered by the Auditor with the foregoing policy.

No Auditor shall represent any Fund or any Service Affiliate before a tax court, district court or federal court of claims.

Under rules adopted by the Public Company Accounting Oversight Board and approved by the SEC, in connection with seeking Audit Committee pre-approval of permissible Tax services, the Auditor shall:

1. Describe in writing to the Audit Committee, which writing may be in the form of the proposed engagement letter:

a. The scope of the service, the fee structure for the engagement, and any side letter or amendment to the engagement letter, or any other agreement between the Auditor and the Fund, relating to the service; and

b. Any compensation arrangement or other agreement, such as a referral agreement, a referral fee or fee-sharing arrangement, between the Auditor and any person (other than the Fund) with respect to the promoting, marketing, or recommending of a transaction covered by the service;

2. Discuss with the Audit Committee the potential effects of the services on the independence of the Auditor; and

3. Document the substance of its discussion with the Audit Committee.

All Other Auditor Services

The Audit Committee may pre-approve non-audit services classified as “All other services” that are not categorically prohibited by the SEC, as listed in Exhibit 1 to this policy.

Pre-Approval Fee Levels or Established Amounts

Pre-approval of estimated fees or established amounts for services to be provided by the Auditor under general or specific pre-approval policies will be set periodically by the Audit Committee. Any proposed fees exceeding 110% of the maximum estimated pre-approved fees or established amounts for pre-approved audit and non-audit services will be reported to the Audit Committee at the quarterly Audit Committee meeting and will require specific approval by the Audit Committee before payment is made. The Audit Committee will always factor in the overall relationship of fees for audit and non-audit services in determining whether to pre-approve any such services and in determining whether to approve any additional fees exceeding 110% of the maximum pre-approved fees or established amounts for previously pre-approved services.

Procedures

On an annual basis, the Auditor will submit to the Audit Committee for general pre-approval, a list of non-audit services that the Funds or Service Affiliates of the Funds may request from the Auditor. The list will describe the non-audit services in reasonable detail and will include an estimated range of fees and such other information as the Audit Committee may request.

Each request for services to be provided by the Auditor under the general pre-approval of the Audit Committee will be submitted to the Funds’ Treasurer (or his or her designee) and must include a detailed description of the services to be rendered. The Treasurer or his or her designee will ensure that such services are included within the list of services that have received the general pre-approval of the Audit Committee. The Audit Committee will be informed at the next quarterly scheduled Audit Committee meeting of any such services for which the Auditor rendered an invoice and whether such services and fees had been pre-approved and if so, by what means.

Each request to provide services that require specific approval by the Audit Committee shall be submitted to the Audit Committee jointly by the Funds’ Treasurer or his or her designee and the Auditor, and must include a joint statement that, in their view, such request is consistent with the pre-approval policies and procedures and the SEC Rules.

Each request to provide Tax services under either the general or specific pre-approval of the Audit Committee will describe in writing: (i) the scope of the service, the fee structure for the engagement, and any side letter or amendment to the engagement letter, or any other agreement between the Auditor and the audit client, relating to the service; and (ii) any compensation arrangement or other agreement between the Auditor and any person (other than the audit client) with respect to the promoting, marketing, or recommending of a transaction covered by the service. The Auditor will discuss with the Audit Committee the potential effects of the services on the Auditor’s independence and will document the substance of the discussion.

Non-audit services pursuant to the de minimis exception provided by the SEC Rules will be promptly brought to the attention of the Audit Committee for approval, including documentation that each of the conditions for this exception, as set forth in the SEC Rules, has been satisfied.

On at least an annual basis, the Auditor will prepare a summary of all the services provided to any entity in the investment company complex as defined in section 2-01(f)(14) of Regulation S-X in sufficient detail as to the nature of the engagement and the fees associated with those services.

The Audit Committee has designated the Funds’ Treasurer to monitor the performance of all services provided by the Auditor and to ensure such services are in compliance with these policies and procedures. The Funds’ Treasurer will report to the Audit Committee on a periodic basis as to the results of such monitoring. Both the Funds’ Treasurer and management will immediately report to the Chairman of the Audit Committee any breach of these policies and procedures that comes to the attention of the Funds’ Treasurer or senior management.

Exhibit 1 to Pre-Approval of Audit and Non-Audit Services Policies and Procedures

Conditionally Prohibited Non-Audit Services (not prohibited if the Fund can reasonably conclude that the results of the service would not be subject to audit procedures in connection with the audit of the Fund’s financial statements)

• Bookkeeping or other services related to the accounting records or financial statements of the audit client

• Financial information systems design and implementation

• Appraisal or valuation services, fairness opinions, or contribution-in-kind reports

• Actuarial services

• Internal audit outsourcing services

Categorically Prohibited Non-Audit Services

• Management functions

• Human resources

• Broker-dealer, investment adviser, or investment banking services

• Legal services

• Expert services unrelated to the audit

• Any service or product provided for a contingent fee or a commission

• Services related to marketing, planning, or opining in favor of the tax treatment of confidential transactions or aggressive tax position transactions, a significant purpose of which is tax avoidance

• Tax services for persons in financial reporting oversight roles at the Fund

• Any other service that the Public Company Oversight Board determines by regulation is impermissible.

(f) Not applicable.

(g) PwC billed the Registrant aggregate fees of $400,749 for the fiscal year ended April 30, 2015 and $408,510 for the fiscal year ended April 30, 2014 for non-audit services rendered to the Registrant.

PwC did not bill any fees for non-audit services rendered to the Registrant’s investment adviser (not including any Sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) or any entity controlling, controlled by or under common control with the Registrant’s investment adviser that provides ongoing services to the Registrant for the fiscal years ended April 30, 2015 and April 30, 2014.

(h) Not applicable.

Item 5. Audit Committee of Listed Registrants.

 (a) The Registrant has a separately designated Audit Committee established in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934, as amended, which consists solely of independent trustees. The Audit Committee members are, Marc M. Kole, Gary R. Wicker, and Donald H. Wilson.

 (b) Not applicable

Item 6. Schedule of Investments.

 (a) The Schedules of Investments are included as a part of the report to shareholders filed under Item 1 of this Form N-CSR.

 (b) Not applicable.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

Not applicable.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable.

Item 10. Submission of Matters to a Vote of Security Holders.

There have been no material changes to the procedures by which shareholders may recommend nominees to the Registrant’s Board of Trustees that would require disclosure herein.

Item 11. Controls and Procedures.

  (a) Based on their evaluation of the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) as of a date within 90 days of the filing date of this report, the Registrant’s President (principal executive officer) and Treasurer (principal financial officer) have concluded that such disclosure controls and procedures are effective.

  (b) There were no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

Item 12. Exhibits.

(a)(1)	Code of Ethics is attached as Exhibit 99.CODEETH.
(a)(2)	Certifications of the Registrant’s President and Treasurer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 are attached as Exhibit 99.CERT.
(a)(3)	Not applicable.
(b)	Certifications of the Registrant’s President and Treasurer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 are attached as Exhibit 99.906CERT.

SIGNATURES

    Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant)   PowerShares Exchange-Traded Fund Trust

By:     /s/ Andrew Schlossberg            

Name:	Andrew Schlossberg
Title:	President
Date:	June 24, 2015

    Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

By:     /s/ Andrew Schlossberg            

Name:	Andrew Schlossberg
Title:	President

Date: June 24, 2015

By:     /s/ Steven Hill                          

Name:	Steven Hill
Title:	Treasurer
Date:	June 24, 2015