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)

Daniel E. Draper

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, 2016

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

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, 2016

2016 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	42
Statements of Operations	43
Statements of Changes in Net Assets	44
Financial Highlights	46
Notes to Financial Statements	48
Report of Independent Registered Public Accounting Firm	57
Fees and Expenses	58
Tax Information	59
Trustees and Officers	60
Board Considerations Regarding Continuation of Investment Advisory Agreement	65

2

The Market Environment

US Equity

Although the health of individual economic sectors varied dramatically, the US economy overall continued its slow but steady growth during the fiscal year ended April 30, 2016. This modest growth led to recurring debate over whether the US economy could withstand global recessionary forces. Many energy, industrial and materials companies experienced cyclical downturns resembling a mild recession even as many consumer-related companies benefited from continued low interest rates, increased availability of credit and a better employment picture. Another significant downturn in oil prices reduced capital investment but also reduced consumers’ energy and gasoline costs.

In the first half of the reporting period, US equity market performance was greatly affected by expectations of when, and whether, the US Federal Reserve (the “Fed”) might raise interest rates — and the impact the Fed’s action might have. Markets moved lower in the summer of 2015 as a significant downturn in China’s financial markets and weak global economic growth led to increased concern about the sustainability of US economic growth. In the fall, markets rallied and the Fed saw enough economic stabilization to finally raise interest rates.

US stocks began 2016 on a negative note. Together with a sharp decline in oil prices, this suggested a global recession might be imminent and caused investors to become decidedly risk averse; this helped short-term and income-oriented investments, but hurt longer-term and growth-oriented investments. As companies reported earnings and fundamentals that were better than had been feared, stocks rallied sharply in late February and March. Additionally, oil prices strengthened modestly on the back of a weaker US dollar and as Saudi Arabia and Russia considered a freeze on their oil output. Overall, US equity markets were mixed, with the S&P 500 Index, considered representative of the performance of the US stock market, finishing the reporting period modestly higher.

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 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 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 price movements relative to a representative market benchmark index. The Index Provider identifies 100 securities with the highest momentum score to include in the Index. Securities with higher 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, 2016, on a market price basis, the Fund returned (6.96)%. On a net asset value (“NAV”) basis, the Fund returned (6.90)%. During the same time period, the Index returned (6.29)%. 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 Composite Index (PO), (the “Benchmark Index”) returned (3.36)%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 2,586 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 a 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.

Relative to the Benchmark Index, 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, 2016. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to stock selection within the information technology, consumer discretionary and industrial sectors as well as the Fund being underweight in the materials and consumer staples sectors.

For the fiscal year ended April 30, 2016, the consumer discretionary sector contributed most significantly to the Fund’s return, followed by the telecommunication services sector. The health care sector detracted most significantly from the Fund’s return, followed by the information technology and industrials sectors, respectively.

Positions that contributed most significantly to the Fund’s return included MarketAxess Holdings, Inc., a financials company (portfolio average weight of 2.08%), and Henry Schein, Inc., a health care company (portfolio average weight of 2.80%). Positions that detracted most significantly from the Fund’s return included Jazz Pharmaceuticals PLC, a health care company (no longer held at fiscal year-end), and PDF Solutions, Inc., an information technology company (no longer held at fiscal year-end).

4

PowerShares DWA NASDAQ Momentum Portfolio (DWAQ) (continued)

Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2016
Consumer Discretionary	30.7
Information Technology	27.7
Financials	14.2
Health Care	13.6
Consumer Staples	5.1
Industrials	5.0
Telecommunication Services	1.9
Energy	1.1
Materials	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, 2016
Security
Priceline Group, Inc. (The)	3.0
Henry Schein, Inc.	2.9
Arch Capital Group Ltd.	2.7
MarketAxess Holdings, Inc.	2.6
Papa John’s International, Inc.	2.5
Atrion Corp.	2.4
Tractor Supply Co.	2.3
O’Reilly Automotive, Inc.	2.1
Ultimate Software Group, Inc. (The)	2.1
Intuit, Inc.	2.1
Total	24.7

* Excluding money market fund holdings.

5

PowerShares DWA NASDAQ Momentum Portfolio (DWAQ) (continued)

Growth of a $10,000 Investment

Fund Performance History as of April 30, 2016

	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 Leaders Index†		(6.29	)%		8.92	%		29.21	%		6.59	%		37.59	%		3.61	%		42.58	%		8.05	%		173.60	%
NASDAQ Composite Index (PO)††		(3.36	)		12.78			43.46			10.69			66.18			7.47			105.61			9.47			224.30
Fund
NAV Return		(6.90	)		8.20			26.68			5.84			32.84			2.96			33.88			7.35			151.49
Market Price Return		(6.96	)		8.25			26.84			5.84			32.85			2.96			33.81			7.34			151.15

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, 2017. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.96% 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 their respective 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.

^†  The Blended-Dorsey Wright^® NASDAQ Technical Leaders 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, 2016.

^††  Price only, and does not reflect dividends paid by the holdings in the Benchmark Index.

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

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 Group, Inc. (the “Index Provider”) compiles, maintains and calculates the Index. Strictly in accordance with its 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 NYSE Group Intellidex 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, 2016, on a market price basis, the Fund returned (1.43)%. On a net asset value (“NAV”) basis, the Fund returned (1.50)%. During the same time period, the Index returned (0.79)%. 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^® Index (the “Benchmark Index”) returned 1.21%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 510 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, 2016. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to stock selection within the industrials sector.

For the fiscal year ended April 30, 2016, the consumer discretionary sector contributed most significantly to the Fund’s return, followed by the consumer staples and energy sectors, respectively. The industrials sector detracted most significantly from the Fund’s return, followed by the health care and materials sectors, respectively.

Positions that contributed most significantly to the Fund’s return included SM Energy Co., an energy company (portfolio average weight of 0.19%), and Seadrill Ltd., an energy company (portfolio average weight of 0.16%). Positions that detracted most significantly from the Fund’s return included American Airlines Group, Inc., an industrials company (portfolio average weight of 1.25%), and AmerisourceBergen Corp., a health care company (no longer held at fiscal year-end).

7

PowerShares Dynamic Market Portfolio (PWC) (continued)

Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2016
Information Technology	20.5
Health Care	13.8
Consumer Discretionary	13.7
Financials	13.2
Consumer Staples	10.5
Industrials	10.3
Energy	8.8
Utilities	3.4
Materials	3.2
Telecommunication Services	2.6
Money Market Fund Plus Other Assets Less Liabilities	0.0
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2016
Security
Constellation Brands, Inc., Class A	3.9
Reynolds American, Inc.	3.5
HP, Inc.	3.2
Facebook, Inc., Class A	3.0
Activision Blizzard, Inc.	3.0
Edwards Lifesciences Corp.	2.8
Motorola Solutions, Inc.	2.7
Fiserv, Inc.	2.7
L-3 Communications Holdings, Inc.	2.6
McDonald’s Corp.	2.5
Total	29.9

* Excluding money market fund holdings.

8

PowerShares Dynamic Market Portfolio (PWC) (continued)

Growth of a $10,000 Investment

Fund Performance History as of April 30, 2016

	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		(0.79	)%		10.24	%		33.99	%		10.23	%		62.74	%		5.90	%		77.44	%		9.57	%		227.84	%
S&P 500® Index		1.21			11.26			37.71			11.02			68.63			6.91			95.01			8.66			194.24
Fund
NAV Return		(1.50	)		9.45			31.12			9.45			57.08			5.26			67.00			8.87			201.79
Market Price Return		(1.43	)		9.47			31.17			9.46			57.13			5.26			66.94			8.87			201.71

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, 2017. 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 their respective 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

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 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, 2016, on a market price basis, the Fund returned (0.24)%. On a net asset value (“NAV”) basis, the Fund returned (0.23)%. During the same time period, the Index returned 0.10%. 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 Russell 1000^® Index (the “Benchmark Index”) returned 0.34%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 1,020 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, 2016. 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 consumer discretionary sector as well as to fees and operating expenses incurred by the Fund.

For the fiscal year ended April 30, 2016, the consumer staples sector contributed most significantly to the Fund’s return, followed by the utilities and telecommunication services sectors, respectively. The energy sector detracted most significantly from the Fund’s return, followed by the financials and information technology sectors, respectively.

Positions that contributed most significantly to the Fund’s return included AT&T, Inc., a telecommunication services company (portfolio average weight of 2.09%), and General Electric Co., an industrials company (portfolio average weight of 1.93%). Positions that detracted most significantly from the Fund’s return included Apple, Inc., an information technology company (portfolio average weight of 1.31%), and Citigroup, Inc., a financials company (portfolio average weight of 1.39%).

Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2016
Financials	21.4
Energy	14.1
Information Technology	12.0
Consumer Discretionary	10.9
Industrials	10.5
Health Care	10.0
Consumer Staples	8.6
Utilities	4.7
Materials	4.4
Telecommunication Services	3.4
Money Market Fund Plus Other Assets Less Liabilities	0.0
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2016
Security
Exxon Mobil Corp.	2.9
Chevron Corp.	2.2
JPMorgan Chase & Co.	1.7
AT&T, Inc.	1.7
Berkshire Hathaway, Inc., Class B	1.6
General Electric Co.	1.5
Apple, Inc.	1.5
Wells Fargo & Co.	1.4
Citigroup, Inc.	1.3
Bank of America Corp.	1.3
Total	17.1

* Excluding money market fund holdings.

10

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

Growth of a $10,000 Investment

Fund Performance History as of April 30, 2016

	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
FTSE RAFI US 1000 Index		0.10	%		10.58	%		35.22	%		10.80	%		66.99	%		7.95	%		114.99	%		8.29	%		128.23	%
Russell 1000® Index		0.34			11.06			36.98			10.81			67.09			6.99			96.50			7.24			106.31
Fund
NAV Return		(0.23	)		10.18			33.75			10.39			63.91			7.50			106.19			7.83			118.35
Market Price Return		(0.24	)		10.17			33.72			10.39			63.90			7.50			106.13			7.85			118.85

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, 2017. 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 their respective 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.

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 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, 2016, on a market price basis, the Fund returned (4.52)%. On a net asset value (“NAV”) basis, the Fund returned (4.49)%. During the same time period, the Index returned (4.30)%. 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, which were partially offset by revenue generated through the Fund’s securities lending program.

During this same time period, the Russell 2000^® Index (the “Benchmark Index”) returned (5.94)%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 1,950 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 industrials sector and most underweight in the health care

sector during the fiscal year ended April 30, 2016. The majority of the Fund’s outperformance 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, 2016, the financials sector contributed most significantly to the Fund’s return, followed by the consumer staples and utilities sectors, respectively. The energy sector detracted most significantly from the Fund’s return, followed by the consumer discretionary and information technology sectors, respectively.

Positions that contributed most significantly to the Fund’s return included Helix Energy Solutions Group, Inc., an energy company (portfolio average weight of 0.04%), and Pep Boys—Manny, Moe & Jack, a consumer discretionary company (no longer held at fiscal year-end). Positions that detracted most significantly from the Fund’s return included SunEdison, Inc., a semiconductors & semiconductor equipment company (no longer held at fiscal year-end), and C&J Energy Services Ltd., an energy company (portfolio average weight of 0.06%).

Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2016
Financials	24.1
Industrials	16.4
Consumer Discretionary	15.6
Information Technology	15.6
Energy	9.0
Health Care	7.0
Materials	6.3
Consumer Staples	3.1
Utilities	1.5
Telecommunication Services	1.4
Money Market Fund Plus Other Assets Less Liabilities	0.0
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2016
Security
Helix Energy Solutions Group, Inc.	0.5
Bill Barrett Corp.	0.4
Laredo Petroleum, Inc.	0.3
Archrock, Inc.	0.3
Tronox Ltd., Class A	0.2
Hornbeck Offshore Services, Inc.	0.2
Bristow Group, Inc.	0.2
EP Energy Corp., Class A	0.2
WEX, Inc.	0.2
Clearwater Paper Corp.	0.2
Total	2.7

* Excluding money market fund holdings.

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, 2016

	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		(4.30	)%		9.41	%		30.97	%		8.26	%		48.69	%		8.49	%		118.83	%
Russell 2000® Index		(5.94	)		7.53			24.33			6.98			40.11			6.04			75.71
Fund
NAV Return		(4.49	)		9.16			30.09			8.03			47.15			8.23			113.76
Market Price Return		(4.52	)		9.20			30.22			8.03			47.16			8.23			113.74

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, 2017. 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 their respective 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

Schedule of Investments^(a)

PowerShares DWA NASDAQ Momentum Portfolio (DWAQ)

April 30, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.1%
		Consumer Discretionary—30.7%
	2,055	Charter Communications, Inc., Class A(b)	$	436,153
	2,268	Children’s Place, Inc. (The)		176,700
	5,582	China Lodging Group Ltd. ADR (China)		201,287
	1,413	Churchill Downs, Inc.		189,596
	3,096	Comcast Corp., Class A		188,113
	5,473	Core-Mark Holding Co., Inc.		446,925
	3,257	Cracker Barrel Old Country Store, Inc.		476,857
	3,606	Dorman Products, Inc.(b)		193,967
	2,038	Expedia, Inc., Class A		235,939
	7,770	G-III Apparel Group Ltd.(b)		351,593
	5,884	Goodyear Tire & Rubber Co. (The)		170,459
	2,354	Helen of Troy Ltd.(b)		234,294
	5,957	Liberty Ventures, Series A(b)		238,280
	7,026	LKQ Corp.(b)		225,183
	8,721	Monro Muffler Brake, Inc.		603,668
	2,765	O’Reilly Automotive, Inc.(b)		726,310
	2,191	Panera Bread Co., Class A(b)		469,948
	15,648	Papa John’s International, Inc.		885,520
	2,612	Pool Corp.		228,315
	770	Priceline Group, Inc. (The)(b)		1,034,618
	31,344	Ruth’s Hospitality Group, Inc.		497,743
	11,776	Smith & Wesson Holding Corp.(b)		257,070
	10,024	Sonic Corp.		344,525
	7,227	Texas Roadhouse, Inc.		294,283
	8,527	Tractor Supply Co.		807,166
	1,017	Ulta Salon, Cosmetics & Fragrance, Inc.(b)		211,821
	6,182	Universal Electronics, Inc.(b)		410,547
	9,958	Vera Bradley, Inc.(b)		174,663
				10,711,543
		Consumer Staples—5.1%
	4,279	Cal-Maine Foods, Inc.		217,202
	1,234	Costco Wholesale Corp.		182,793
	2,533	J & J Snack Foods Corp.		256,162
	1,513	Monster Beverage Corp.(b)		218,205
	5,099	National Beverage Corp.(b)		238,327
	25,096	Pilgrim’s Pride Corp.(b)		675,333
				1,788,022
		Energy—1.1%
	4,203	Diamondback Energy, Inc.(b)		363,896
		Financials—14.2%
	6,445	Ameris Bancorp		202,373
	13,568	Arch Capital Group Ltd. (Bermuda)(b)		956,408
	6,957	Eagle Bancorp, Inc.(b)		352,720
	890	Equinix, Inc. REIT		294,011
	8,821	First Merchants Corp.		226,259
	19,578	Grupo Financiero Galicia SA, Class B ADR (Argentina)		557,386
	5,625	Home BancShares, Inc.		241,819
	3,098	Lamar Advertising Co., Class A REIT		192,200
	7,495	MarketAxess Holdings, Inc.		920,086
	13,156	Meridian Bancorp, Inc.		192,341
	5,925	Pinnacle Financial Partners, Inc.		291,332
	7,862	PrivateBancorp, Inc.		327,138
	1,550	Signature Bank(b)		213,636
				4,967,709

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Health Care—13.6%
	7,084	ABIOMED, Inc.(b)	$	688,140
	3,701	Align Technology, Inc.(b)		267,175
	2,804	AmSurg Corp.(b)		227,068
	2,099	Atrion Corp.		833,933
	5,964	Henry Schein, Inc.(b)		1,006,127
	3,679	ICON PLC(b)		248,627
	5,312	IDEXX Laboratories, Inc.(b)		448,067
	15,511	Lexicon Pharmaceuticals, Inc.(b)		214,207
	2,086	Ligand Pharmaceuticals, Inc.(b)		252,135
	3,652	Neogen Corp.(b)		172,520
	3,093	PAREXEL International Corp.(b)		188,982
	3,303	VCA, Inc.(b)		207,990
				4,754,971
		Industrials—5.0%
	8,634	AAON, Inc.		228,974
	1,783	AMERCO		627,616
	2,073	Elbit Systems Ltd. (Israel)		207,300
	7,181	Gibraltar Industries, Inc.(b)		189,938
	5,165	Healthcare Services Group, Inc.		195,495
	4,326	Old Dominion Freight Line, Inc.(b)		285,732
				1,735,055
		Information Technology—27.7%
	5,795	Activision Blizzard, Inc.		199,754
	2,041	Adobe Systems, Inc.(b)		192,303
	3,871	Broadcom Ltd. (Singapore)		564,198
	12,817	Cadence Design Systems, Inc.(b)		297,226
	2,537	Check Point Software Technologies Ltd. (Israel)(b)		210,241
	2,390	Cimpress NV (Netherlands)(b)		210,009
	5,619	Cirrus Logic, Inc.(b)		202,846
	1,439	CoStar Group, Inc.(b)		283,929
	4,987	Cray, Inc.(b)		188,858
	9,850	Ebix, Inc.		473,982
	4,597	Electronics for Imaging, Inc.(b)		183,144
	3,729	ExlService Holdings, Inc.(b)		180,446
	4,810	Facebook, Inc., Class A(b)		565,560
	2,887	FEI Co.		257,001
	2,570	First Solar, Inc.(b)		143,509
	2,576	Fiserv, Inc.(b)		251,727
	18,125	Himax Technologies, Inc. ADR (Taiwan)		188,319
	7,158	Intuit, Inc.		722,171
	2,493	Jack Henry & Associates, Inc.		202,008
	4,308	Littelfuse, Inc.		501,796
	6,056	Monolithic Power Systems, Inc.		378,016
	5,692	NXP Semiconductors NV (Netherlands)(b)		485,414
	8,084	Orbotech Ltd. (Israel)(b)		194,663
	8,077	PC Connection, Inc.		191,990
	6,693	Proofpoint, Inc.(b)		389,934
	3,922	SS&C Technologies Holdings, Inc.		239,830
	4,448	Stamps.com, Inc.(b)		366,337
	2,790	Synaptics, Inc.(b)		199,624
	7,958	Take-Two Interactive Software, Inc.(b)		272,004
	3,692	Ultimate Software Group, Inc. (The)(b)		725,810
	3,612	Universal Display Corp.(b)		210,616
				9,673,265

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, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Materials—0.8%
	17,259	Pan American Silver Corp. (Canada)	$	270,449
		Telecommunication Services—1.9%
	6,515	Cogent Communications Group, Inc.		252,130
	14,369	Shenandoah Telecommunications Co.		412,247
				664,377
		Total Common Stocks and Other Equity Interests (Cost $33,611,430)		34,929,287
		Money Market Fund—0.1%
	43,830	Invesco Premier Portfolio—Institutional Class, 0.39%(c) (Cost $43,830)		43,830
		Total Investments (Cost $33,655,260)—100.2%		34,973,117
		Other assets less liabilities—(0.2)%		(59,837	)
		Net Assets—100.0%	$	34,913,280

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)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of April 30, 2016.

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, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—13.7%
	20,297	Abercrombie & Fitch Co., Class A	$	542,539
	71,275	Apollo Education Group, Inc., Class A(b)		555,945
	8,414	Children’s Place, Inc. (The)		655,535
	8,021	Cooper-Standard Holding, Inc.(b)		618,499
	39,961	L Brands, Inc.		3,128,547
	28,805	McDonald’s Corp.		3,643,544
	43,447	Omnicom Group, Inc.		3,604,798
	12,824	O’Reilly Automotive, Inc.(b)		3,368,608
	15,365	ServiceMaster Global Holdings, Inc.(b)		588,787
	11,202	Six Flags Entertainment Corp.		672,680
	23,365	Smith & Wesson Holding Corp.(b)		510,058
	8,268	Sturm Ruger & Co., Inc.		529,400
	4,560	Vail Resorts, Inc.		591,158
	8,070	Visteon Corp.		642,937
				19,653,035
		Consumer Staples—10.5%
	6,714	Casey’s General Stores, Inc.		751,968
	35,368	Constellation Brands, Inc., Class A		5,519,530
	37,206	Dean Foods Co.		641,059
	13,014	Herbalife Ltd.(b)		754,161
	18,793	National Beverage Corp.(b)		878,385
	10,237	Post Holdings, Inc., Class A(b)		735,426
	99,920	Reynolds American, Inc.		4,956,032
	11,013	Tyson Foods, Inc., Class A		724,876
				14,961,437
		Energy—8.8%
	69,906	Alon USA Partners LP		699,060
	378,013	Seadrill Ltd. (United Kingdom)(b)		1,806,902
	81,279	SM Energy Co.		2,532,654
	41,494	Tesoro Corp.		3,306,657
	82,595	Transocean Ltd.		915,152
	55,884	Valero Energy Corp.		3,289,891
				12,550,316
		Financials—13.2%
	30,592	Ambac Financial Group, Inc.(b)		496,508
	10,110	Aspen Insurance Holdings Ltd. (Bermuda)		468,599
	84,504	Charles Schwab Corp. (The)		2,400,759
	18,308	Chubb Ltd.		2,157,781
	33,844	Cincinnati Financial Corp.		2,234,043
	16,692	Employers Holdings, Inc.		495,752
	16,537	Enterprise Financial Services Corp.		452,618
	11,513	Everest Re Group Ltd.		2,128,754
	22,091	Green Dot Corp., Class A(b)		491,083
	23,249	Heritage Insurance Holdings, Inc.		308,979
	25,374	Investment Technology Group, Inc.		495,301
	37,391	JPMorgan Chase & Co.		2,363,111
	33,696	Nasdaq, Inc.		2,079,380
	2,122	National Western Life Group, Inc., Class A		459,837
	25,656	Old Republic International Corp.		474,379
	79,215	TrustCo Bank Corp. NY		507,768
	11,266	United Fire Group, Inc.		504,942
	23,215	Universal Insurance Holdings, Inc.		408,816
				18,928,410

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Health Care—13.8%
	4,009	athenahealth, Inc.(b)	$	534,400
	19,712	Bruker Corp.		557,850
	23,372	Cigna Corp.		3,237,957
	37,544	Edwards Lifesciences Corp.(b)		3,987,548
	18,115	Enanta Pharmaceuticals, Inc.(b)		528,958
	37,471	Gilead Sciences, Inc.		3,305,317
	94,106	Hologic, Inc.(b)		3,161,020
	7,002	IDEXX Laboratories, Inc.(b)		590,619
	12,878	INC Research Holdings, Inc., Class A(b)		619,818
	5,289	Ligand Pharmaceuticals, Inc.(b)		639,281
	8,810	Magellan Health, Inc.(b)		620,753
	13,277	Masimo Corp.(b)		575,558
	8,211	Molina Healthcare, Inc.(b)		425,001
	19,803	Triple-S Management Corp., Class B(b)		515,670
	5,606	WellCare Health Plans, Inc.(b)		504,484
				19,804,234
		Industrials—10.3%
	82,905	American Airlines Group, Inc.		2,875,974
	68,931	Builders FirstSource, Inc.(b)		764,445
	70,797	Delta Air Lines, Inc.		2,950,111
	12,771	Hawaiian Holdings, Inc.(b)		537,276
	28,493	L-3 Communications Holdings, Inc.		3,747,684
	46,944	MRC Global, Inc.(b)		656,277
	6,723	National Presto Industries, Inc.		586,178
	55,340	RPX Corp.(b)		613,167
	30,835	SkyWest, Inc.		724,623
	11,818	Spirit AeroSystems Holdings, Inc., Class A(b)		557,219
	46,227	Wabash National Corp.(b)		658,735
				14,671,689
		Information Technology—20.5%
	122,979	Activision Blizzard, Inc.		4,239,086
	25,577	Advanced Energy Industries, Inc.(b)		827,416
	23,158	Aspen Technology, Inc.(b)		880,699
	139,159	EarthLink Holdings Corp.		808,514
	36,340	Facebook, Inc., Class A(b)		4,272,857
	40,026	Fiserv, Inc.(b)		3,911,341
	368,588	HP, Inc.		4,522,575
	21,419	Ingram Micro, Inc., Class A		748,594
	52,388	Motorola Solutions, Inc.		3,939,054
	38,999	Nuance Communications, Inc.(b)		670,003
	155,597	Oclaro, Inc.(b)		785,765
	36,450	Sanmina Corp.(b)		862,042
	25,189	Sykes Enterprises, Inc.(b)		734,259
	8,121	SYNNEX Corp.		670,551
	21,335	Take-Two Interactive Software, Inc.(b)		729,230
	10,860	Tech Data Corp.(b)		745,973
				29,347,959
		Materials—3.2%
	37,020	LyondellBasell Industries NV, Class A		3,060,443
	50,534	Mercer International, Inc. (Canada)		424,486
	8,378	Stepan Co.		513,488
	14,676	Trinseo SA(b)		627,986
				4,626,403

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

16

PowerShares Dynamic Market Portfolio (PWC) (continued)

April 30, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Telecommunication Services—2.6%
	4,924	Atlantic Tele-Network, Inc.	$	354,085
	24,958	Level 3 Communications, Inc.(b)		1,304,305
	15,261	Shenandoah Telecommunications Co.		437,838
	13,243	Telephone & Data Systems, Inc.		391,596
	23,965	Verizon Communications, Inc.		1,220,777
				3,708,601
		Utilities—3.4%
	10,877	SCANA Corp.		747,141
	68,275	Southern Co. (The)		3,420,577
	10,860	Spire, Inc.		694,606
				4,862,324
		Total Common Stocks and Other Equity Interests (Cost $139,161,964)		143,114,408
		Money Market Fund—0.0%
	63,757	Invesco Premier Portfolio—Institutional Class, 0.39%(c) (Cost $63,757)		63,757
		Total Investments (Cost $139,225,721)—100.0%		143,178,165
		Other assets less liabilities—(0.0)%		(56,092	)
		Net Assets—100.0%	$	143,122,073

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. The rate shown is the 7-day SEC standardized yield as of April 30, 2016.

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, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—10.9%
	31,550	Abercrombie & Fitch Co., Class A	$	843,331
	8,697	Advance Auto Parts, Inc.		1,357,602
	14,992	Amazon.com, Inc.(b)		9,888,573
	34,024	American Axle & Manufacturing Holdings, Inc.(b)		527,712
	69,649	American Eagle Outfitters, Inc.(c)		996,677
	123,341	Apollo Education Group, Inc., Class A(b)		962,060
	54,714	Aramark		1,833,466
	11,440	Asbury Automotive Group, Inc.(b)		693,493
	100,737	Ascena Retail Group, Inc.(b)		887,493
	18,449	Autoliv, Inc. (Sweden)(c)		2,259,449
	32,493	AutoNation, Inc.(b)		1,645,770
	2,809	AutoZone, Inc.(b)		2,149,531
	56,694	Bed Bath & Beyond, Inc.(b)		2,677,091
	151,734	Best Buy Co., Inc.		4,867,627
	18,745	Big Lots, Inc.		859,646
	46,352	Bloomin’ Brands, Inc.		866,782
	49,279	BorgWarner, Inc.		1,770,102
	11,467	Brinker International, Inc.		531,151
	14,408	Brunswick Corp.		692,016
	11,694	Burlington Stores, Inc.(b)		666,207
	11,756	Cabela’s, Inc.(b)		613,075
	38,900	Cablevision Systems Corp., Class A		1,298,871
	63,146	Caesars Entertainment Corp.(b)(c)		431,287
	49,988	CarMax, Inc.(b)(c)		2,646,865
	89,406	Carnival Corp.		4,385,364
	82,001	CBS Corp., Class B		4,584,676
	10,053	Charter Communications, Inc., Class A(b)(c)		2,133,649
	46,715	Chico’s FAS, Inc.		589,076
	1,887	Chipotle Mexican Grill, Inc.(b)		794,370
	25,923	Cinemark Holdings, Inc.		898,232
	59,379	Coach, Inc.		2,391,192
	441,107	Comcast Corp., Class A		26,801,661
	17,543	Cooper Tire & Rubber Co.		605,935
	10,742	Core-Mark Holding Co., Inc.		877,192
	3,370	Cracker Barrel Old Country Store, Inc.(c)		493,402
	40,749	CST Brands, Inc.		1,539,090
	49,192	D.R. Horton, Inc.		1,478,712
	85,616	Dana Holding Corp.		1,107,015
	28,245	Darden Restaurants, Inc.		1,758,251
	8,911	Deckers Outdoor Corp.(b)		515,145
	43,209	Delphi Automotive PLC (United Kingdom)		3,181,479
	26,995	DeVry Education Group, Inc.(c)		468,363
	21,730	Dick’s Sporting Goods, Inc.		1,006,968
	11,328	Dillard’s, Inc., Class A(c)		798,058
	24,200	Discovery Communications, Inc., Class A(b)(c)		660,902
	42,821	Discovery Communications, Inc., Class C(b)		1,146,746
	34,993	DISH Network Corp., Class A(b)		1,724,805
	49,488	Dollar General Corp.		4,053,562
	20,363	Dollar Tree, Inc.(b)		1,623,135
	19,986	DSW, Inc., Class A		491,056
	8,152	Expedia, Inc., Class A		943,757
	21,504	Foot Locker, Inc.		1,321,206
	1,819,348	Ford Motor Co.		24,670,359
	16,073	Fossil Group, Inc.(b)		650,957

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Discretionary (continued)
	52,440	GameStop Corp., Class A(c)	$	1,720,032
	52,496	Gannett Co., Inc.		884,558
	76,402	Gap, Inc. (The)(c)		1,770,998
	26,795	Garmin Ltd.(c)		1,142,271
	621,542	General Motors Co.		19,765,036
	8,587	Genesco, Inc.(b)		594,049
	44,947	Gentex Corp.		720,950
	31,254	Genuine Parts Co.		2,999,446
	20,727	GNC Holdings, Inc., Class A		504,910
	98,163	Goodyear Tire & Rubber Co. (The)		2,843,782
	1,173	Graham Holdings Co., Class B		558,981
	16,000	Group 1 Automotive, Inc.		1,053,440
	33,572	Guess?, Inc.		616,046
	42,596	H&R Block, Inc.		862,143
	34,297	Hanesbrands, Inc.		995,642
	43,153	Harley-Davidson, Inc.		2,064,008
	10,785	Harman International Industries, Inc.		827,857
	16,974	Hasbro, Inc.		1,436,679
	76,345	Hilton Worldwide Holdings, Inc.		1,683,407
	143,663	Home Depot, Inc. (The)		19,235,039
	79,637	International Game Technology PLC		1,380,906
	72,053	Interpublic Group of Cos., Inc. (The)		1,652,896
	217,533	J.C. Penney Co., Inc.(b)(c)		2,018,706
	200,951	Johnson Controls, Inc.		8,319,371
	85,339	Kohl’s Corp.		3,780,518
	42,886	L Brands, Inc.		3,357,545
	72,703	Las Vegas Sands Corp.		3,282,540
	20,449	Lear Corp.		2,354,293
	24,989	Leggett & Platt, Inc.		1,231,708
	27,516	Lennar Corp., Class A		1,246,750
	1,514	Lennar Corp., Class B		54,443
	2,185	Liberty Braves Group, Class A(b)		34,173
	4,362	Liberty Braves Group, Class C(b)		65,081
	51,874	Liberty Global PLC, Series A (United Kingdom)(b)		1,957,206
	127,230	Liberty Global PLC, Series C (United Kingdom)(b)		4,656,618
	104,982	Liberty Interactive Corp. QVC Group, Series A(b)		2,750,528
	352	Liberty Interactive Corp. QVC Group, Series B(b)		9,335
	5,461	Liberty Media Group, Class A(b)		99,936
	10,907	Liberty Media Group, Class C(b)		196,326
	21,845	Liberty SiriusXM Group, Class A(b)		715,861
	43,630	Liberty SiriusXM Group, Class C(b)		1,397,033
	45,521	Live Nation Entertainment, Inc.(b)		977,791
	43,807	LKQ Corp.(b)		1,404,014
	146,771	Lowe’s Cos., Inc.		11,157,531
	130,076	Macy’s, Inc.		5,149,709
	22,593	Marriott International, Inc., Class A(c)		1,583,543
	80,624	Mattel, Inc.		2,506,600
	144,051	McDonald’s Corp.		18,221,011
	120,517	MGM Resorts International(b)		2,567,012
	19,375	Michael Kors Holdings Ltd.(b)		1,000,913
	9,597	Mohawk Industries, Inc.(b)		1,848,670
	33,348	Murphy USA, Inc.(b)		1,914,842

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, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Discretionary (continued)
	9,422	Netflix, Inc.(b)	$	848,263
	36,535	Newell Brands, Inc.		1,663,804
	180,663	News Corp., Class A		2,243,834
	49,614	News Corp., Class B		642,997
	82,636	NIKE, Inc., Class B		4,870,566
	39,842	Nordstrom, Inc.(c)		2,037,121
	19,694	Norwegian Cruise Line Holdings Ltd.(b)		962,840
	543	NVR, Inc.(b)		902,080
	307,999	Office Depot, Inc.(b)		1,811,034
	47,275	Omnicom Group, Inc.		3,922,407
	6,814	O’Reilly Automotive, Inc.(b)		1,789,902
	15,740	Outerwall, Inc.(c)		650,219
	2,626	Panera Bread Co., Class A(b)		563,251
	22,592	Penske Automotive Group, Inc.		884,025
	9,366	Polaris Industries, Inc.		916,744
	2,568	Priceline Group, Inc. (The)(b)		3,450,519
	56,597	PulteGroup, Inc.		1,040,819
	17,701	PVH Corp.		1,692,216
	15,238	Ralph Lauren Corp., Class A		1,420,334
	30,366	Regal Entertainment Group, Class A(c)		633,131
	55,203	Rent-A-Center, Inc.		811,484
	37,758	Ross Stores, Inc.		2,143,899
	25,512	Royal Caribbean Cruises Ltd.		1,974,629
	21,561	Sally Beauty Holdings, Inc.(b)		677,015
	10,711	Scripps Networks Interactive, Inc., Class A		667,831
	83,194	Sears Holdings Corp.(b)(c)		1,362,302
	26,963	SeaWorld Entertainment, Inc.		537,373
	33,452	Service Corp. International		892,165
	13,255	ServiceMaster Global Holdings, Inc.(b)		507,932
	10,510	Signet Jewelers Ltd.		1,140,966
	148,749	Sirius XM Holdings, Inc.(b)(c)		587,559
	11,027	Six Flags Entertainment Corp.		662,171
	38,579	Sonic Automotive, Inc., Class A		723,742
	436,075	Staples, Inc.		4,447,965
	71,535	Starbucks Corp.		4,022,413
	33,732	Starwood Hotels & Resorts Worldwide, Inc.		2,761,976
	35,425	Tailored Brands, Inc.		617,104
	189,400	Target Corp.		15,057,300
	56,527	TEGNA, Inc.		1,320,471
	27,775	Tenneco, Inc.(b)		1,480,408
	10,012	Thor Industries, Inc.		640,968
	21,204	Tiffany & Co.		1,512,905
	44,509	Time Warner Cable, Inc.		9,440,804
	213,383	Time Warner, Inc.		16,033,599
	63,469	Time, Inc.		932,994
	72,394	TJX Cos., Inc. (The)		5,488,913
	32,972	Toll Brothers, Inc.(b)		900,136
	8,242	Tractor Supply Co.		780,188
	44,133	Tribune Media Co., Class A		1,701,327
	12,220	Tupperware Brands Corp.		709,615
	175,404	Twenty-First Century Fox, Inc., Class A		5,307,725
	65,009	Twenty-First Century Fox, Inc., Class B		1,958,071
	3,369	Ulta Salon, Cosmetics & Fragrance, Inc.(b)		701,695
	6,187	Under Armour, Inc., Class A(b)		271,857
	6,187	Under Armour, Inc., Class C(b)		252,430

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Discretionary (continued)
	23,207	Urban Outfitters, Inc.(b)	$	703,636
	42,214	VF Corp.		2,661,593
	3,152	Viacom, Inc., Class A		138,467
	111,983	Viacom, Inc., Class B		4,580,105
	11,264	Vista Outdoor, Inc.(b)		540,447
	20,199	Visteon Corp.		1,609,254
	181,510	Walt Disney Co. (The)		18,742,723
	58,711	Wendy’s Co. (The)		637,601
	22,669	Whirlpool Corp.		3,947,580
	13,896	Williams-Sonoma, Inc.		816,807
	19,970	Wyndham Worldwide Corp.		1,416,872
	36,053	Wynn Resorts Ltd.(c)		3,183,480
	56,845	Yum! Brands, Inc.		4,522,588
				452,310,066
		Consumer Staples—8.6%
	255,096	Altria Group, Inc.		15,997,070
	21,703	Andersons, Inc. (The)		727,268
	350,535	Archer-Daniels-Midland Co.		14,000,368
	548,846	Avon Products, Inc.		2,585,065
	12,276	Brown-Forman Corp., Class B		1,182,424
	134,836	Bunge Ltd.		8,427,250
	25,349	Campbell Soup Co.		1,564,287
	8,626	Casey’s General Stores, Inc.		966,112
	12,819	Church & Dwight Co., Inc.		1,188,321
	15,082	Clorox Co. (The)		1,888,719
	578,299	Coca-Cola Co. (The)		25,907,795
	38,879	Coca-Cola Enterprises, Inc.		2,040,370
	107,274	Colgate-Palmolive Co.		7,607,872
	84,536	ConAgra Foods, Inc.		3,766,924
	12,835	Constellation Brands, Inc., Class A		2,003,030
	94,314	Costco Wholesale Corp.		13,970,733
	216,896	CVS Health Corp.		21,798,048
	86,650	Darling Ingredients, Inc.(b)		1,255,559
	33,171	Dean Foods Co.		571,536
	24,229	Dr Pepper Snapple Group, Inc.		2,202,658
	10,981	Edgewell Personal Care Co.		901,211
	14,102	Energizer Holdings, Inc.		613,296
	17,161	Estee Lauder Cos., Inc. (The), Class A		1,645,225
	40,525	Flowers Foods, Inc.		776,459
	105,840	General Mills, Inc.		6,492,226
	14,304	Hain Celestial Group, Inc. (The)(b)		598,765
	18,635	Herbalife Ltd.(b)		1,079,898
	19,073	Hershey Co. (The)		1,775,887
	24,291	Hormel Foods Corp.		936,418
	51,546	HRG Group, Inc.(b)		742,262
	12,082	Ingredion, Inc.		1,390,517
	19,235	JM Smucker Co. (The)		2,442,460
	40,310	Kellogg Co.		3,096,211
	50,658	Kimberly-Clark Corp.		6,341,875
	39,925	Kraft Heinz Co. (The)		3,116,945
	278,388	Kroger Co. (The)		9,852,151
	13,343	McCormick & Co., Inc.		1,251,307
	20,994	Mead Johnson Nutrition Co.		1,829,627
	18,566	Molson Coors Brewing Co., Class B		1,775,467
	300,985	Mondelez International, Inc., Class A		12,930,316

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, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Staples (continued)
	4,671	Monster Beverage Corp.(b)	$	673,652
	19,030	Nu Skin Enterprises, Inc., Class A(c)		775,853
	230,823	PepsiCo, Inc.		23,765,536
	269,305	Philip Morris International, Inc.		26,424,207
	16,516	Pinnacle Foods, Inc.		703,416
	500,894	Procter & Gamble Co. (The)		40,131,627
	73,524	Reynolds American, Inc.		3,646,790
	315,657	Rite Aid Corp.(b)		2,541,039
	335,552	SUPERVALU, Inc.(b)		1,687,827
	150,691	Sysco Corp.		6,942,334
	6,695	TreeHouse Foods, Inc.(b)		591,838
	58,863	Tyson Foods, Inc., Class A		3,874,363
	21,316	United Natural Foods, Inc.(b)		760,342
	10,863	Universal Corp.		592,577
	136,837	Walgreens Boots Alliance, Inc.		10,848,437
	609,799	Wal-Mart Stores, Inc.		40,777,259
	15,569	WhiteWave Foods Co. (The)(b)		626,029
	75,572	Whole Foods Market, Inc.		2,197,634
				356,800,692
		Energy—14.1%
	201,127	Anadarko Petroleum Corp.		10,611,461
	226,866	Apache Corp.		12,341,510
	116,182	Atwood Oceanics, Inc.(c)		1,122,318
	149,358	Baker Hughes, Inc.		7,222,953
	35,589	Cabot Oil & Gas Corp.		832,783
	2,614,549	California Resources Corp.		5,752,008
	2,232,976	Chesapeake Energy Corp.(c)		15,340,545
	869,481	Chevron Corp.		88,843,569
	14,674	Cimarex Energy Co.		1,597,705
	30,861	Columbia Pipeline Group, Inc.		790,659
	17,601	Concho Resources, Inc.(b)		2,044,708
	859,732	ConocoPhillips		41,086,592
	203,250	CONSOL Energy, Inc.(c)		3,058,912
	25,100	Continental Resources, Inc.(b)		935,226
	139,178	Cosan Ltd., Class A (Brazil)		748,778
	61,667	Delek US Holdings, Inc.		979,889
	1,384,059	Denbury Resources, Inc.(c)		5,342,468
	349,003	Devon Energy Corp.		12,103,424
	73,831	Diamond Offshore Drilling, Inc.(c)		1,791,140
	38,011	Energen Corp.		1,615,087
	331,138	Ensco PLC, Class A		3,960,410
	90,089	EOG Resources, Inc.		7,443,153
	22,895	EQT Corp.		1,604,940
	1,362,176	Exxon Mobil Corp.		120,416,358
	63,801	FMC Technologies, Inc.(b)		1,945,292
	32,537	Golar LNG Ltd. (Bermuda)(c)		539,463
	17,828	Gulfport Energy Corp.(b)		558,016
	248,157	Halliburton Co.		10,251,366
	29,648	Helmerich & Payne, Inc.(c)		1,960,326
	170,244	Hess Corp.		10,149,947
	127,980	HollyFrontier Corp.		4,556,088
	521,285	Kinder Morgan, Inc.		9,258,022
	1,039,601	Marathon Oil Corp.		14,647,978
	322,314	Marathon Petroleum Corp.		12,596,031
	263,908	McDermott International, Inc.(b)		1,198,142

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Energy (continued)
	230,265	Murphy Oil Corp.(c)	$	8,229,671
	242,747	Nabors Industries Ltd.		2,378,921
	219,743	National Oilwell Varco, Inc.		7,919,538
	64,081	Newfield Exploration Co.(b)		2,322,936
	276,120	Noble Corp. PLC (United Kingdom)(c)		3,100,828
	97,542	Noble Energy, Inc.		3,522,242
	120,260	Oasis Petroleum, Inc.(b)		1,165,319
	224,654	Occidental Petroleum Corp.		17,219,729
	30,543	Oceaneering International, Inc.		1,119,401
	25,053	Oil States International, Inc.(b)		867,836
	112,997	ONEOK, Inc.		4,084,842
	70,537	Patterson-UTI Energy, Inc.		1,393,106
	56,541	PBF Energy, Inc., Class A		1,819,489
	225,346	Phillips 66		18,503,160
	14,908	Pioneer Natural Resources Co.		2,476,219
	113,504	QEP Resources, Inc.		2,035,127
	39,421	Range Resources Corp.(c)		1,738,860
	75,682	Rowan Cos. PLC, Class A		1,423,578
	234,948	Schlumberger Ltd.		18,875,722
	12,027	SEACOR Holdings, Inc.(b)		706,827
	101,213	SM Energy Co.(c)		3,153,797
	285,139	Southwestern Energy Co.(b)(c)		3,829,417
	168,676	Spectra Energy Corp.		5,274,499
	287,424	Stone Energy Corp.(b)(c)		281,704
	122,309	Superior Energy Services, Inc.		2,062,130
	42,521	Targa Resources Corp.		1,720,400
	60,701	Teekay Corp. (Bermuda)(c)		679,851
	49,653	Tesoro Corp.		3,956,848
	104,939	Tidewater, Inc.(c)		919,266
	485,734	Transocean Ltd.(c)		5,381,933
	130,141	Unit Corp.(b)		1,647,585
	263,825	Valero Energy Corp.		15,531,378
	571,479	Weatherford International PLC(b)		4,646,124
	42,494	Western Refining, Inc.		1,137,139
	411,798	Whiting Petroleum Corp.(b)(c)		4,941,576
	311,506	Williams Cos., Inc. (The)		6,040,101
	55,436	World Fuel Services Corp.		2,590,524
	282,621	WPX Energy, Inc.(b)		2,730,119
				582,675,009
		Financials—21.4%
	7,988	Affiliated Managers Group, Inc.(b)		1,360,516
	129,842	Aflac, Inc.		8,955,203
	13,452	Alexandria Real Estate Equities, Inc. REIT		1,250,363
	4,545	Alleghany Corp.(b)		2,369,218
	33,198	Allied World Assurance Co. Holdings AG		1,181,185
	126,905	Allstate Corp. (The)		8,255,170
	344,065	Ally Financial, Inc.(b)		6,127,798
	36,437	Ambac Financial Group, Inc.(b)		591,373
	19,061	American Campus Communities, Inc. REIT		852,980
	137,422	American Capital Agency Corp. REIT		2,524,442
	44,638	American Equity Investment Life Holding Co.		624,932
	202,947	American Express Co.		13,278,822
	23,021	American Financial Group, Inc.		1,590,981
	531,759	American International Group, Inc.		29,682,787

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, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	25,107	American Tower Corp. REIT	$	2,633,222
	43,958	Ameriprise Financial, Inc.		4,215,572
	396,687	Annaly Capital Management, Inc. REIT		4,133,479
	35,943	Aon PLC		3,778,328
	20,150	Apartment Investment & Management Co., Class A REIT		807,209
	45,136	Apple Hospitality REIT, Inc. REIT(c)		854,425
	24,045	Arch Capital Group Ltd. (Bermuda)(b)		1,694,932
	33,852	Arthur J. Gallagher & Co.		1,558,546
	18,048	Aspen Insurance Holdings Ltd. (Bermuda)		836,525
	37,370	Associated Banc-Corp.		681,629
	28,435	Assurant, Inc.		2,404,748
	48,153	Assured Guaranty Ltd.		1,245,718
	14,831	AvalonBay Communities, Inc. REIT		2,621,973
	28,363	Axis Capital Holdings Ltd.		1,510,897
	3,787,199	Bank of America Corp.		55,141,617
	8,310	Bank of Hawaii Corp.		568,487
	276,256	Bank of New York Mellon Corp. (The)		11,116,541
	18,389	BankUnited, Inc.		634,421
	214,076	BB&T Corp.		7,574,009
	440,371	Berkshire Hathaway, Inc., Class B(b)		64,065,173
	21,934	BlackRock, Inc.		7,815,742
	25,351	Boston Properties, Inc. REIT		3,266,730
	56,023	Brandywine Realty Trust REIT		837,544
	30,409	Brixmor Property Group, Inc. REIT		767,827
	18,557	Brown & Brown, Inc.		651,536
	14,981	Camden Property Trust REIT		1,209,416
	174,678	Capital One Financial Corp.		12,644,940
	46,143	Capitol Federal Financial, Inc.		613,241
	18,280	Care Capital Properties, Inc. REIT		487,528
	85,440	CBL & Associates Properties, Inc. REIT		997,939
	52,008	CBRE Group, Inc., Class A(b)		1,540,997
	120,047	Charles Schwab Corp. (The)		3,410,535
	78,740	Chimera Investment Corp. REIT		1,118,108
	74,649	Chubb Ltd.		8,798,131
	30,860	Cincinnati Financial Corp.		2,037,069
	74,978	CIT Group, Inc.		2,591,990
	1,193,309	Citigroup, Inc.		55,226,341
	241,282	Citizens Financial Group, Inc.		5,513,294
	64,270	CME Group, Inc., Class A		5,907,056
	67,976	CNO Financial Group, Inc.		1,248,719
	48,973	Columbia Property Trust, Inc. REIT		1,092,098
	52,653	Comerica, Inc.		2,337,793
	19,861	Commerce Bancshares, Inc.		929,892
	26,118	Corporate Office Properties Trust REIT		670,710
	41,265	Corrections Corp. of America REIT		1,255,281
	22,091	Crown Castle International Corp. REIT		1,919,266
	15,566	Cullen/Frost Bankers, Inc.		996,068
	14,479	DCT Industrial Trust, Inc. REIT		584,517
	55,914	DDR Corp. REIT		978,495
	62,319	DiamondRock Hospitality Co. REIT		555,262
	19,416	Digital Realty Trust, Inc. REIT		1,708,220
	102,282	Discover Financial Services		5,755,408
	23,634	Douglas Emmett, Inc. REIT		766,923
	58,705	Duke Realty Corp. REIT		1,283,878
	73,171	E*TRADE Financial Corp.(b)		1,842,446

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	27,352	East West Bancorp, Inc.	$	1,025,427
	24,159	Eaton Vance Corp.		834,210
	12,086	Endurance Specialty Holdings Ltd.		773,262
	8,922	EPR Properties REIT		587,781
	3,622	Equinix, Inc. REIT		1,196,528
	32,766	Equity Commonwealth REIT(b)		914,499
	6,736	Equity LifeStyle Properties, Inc. REIT		461,349
	53,711	Equity Residential REIT		3,656,108
	6,853	Essex Property Trust, Inc. REIT		1,510,744
	9,201	Everest Re Group Ltd.		1,701,265
	7,416	Extra Space Storage, Inc. REIT		629,989
	44,147	F.N.B. Corp.		583,623
	6,312	Federal Realty Investment Trust REIT		959,929
	25,616	Federated Investors, Inc., Class B		809,466
	293,806	Fifth Third Bancorp		5,379,588
	26,356	First American Financial Corp.		949,343
	45,289	First Horizon National Corp.		637,669
	106,037	First Niagara Financial Group, Inc.		1,119,751
	16,589	First Republic Bank		1,166,539
	40,030	FirstMerit Corp.		887,065
	62,097	FNF Group		1,980,894
	95,659	Franklin Resources, Inc.		3,571,907
	47,583	Fulton Financial Corp.		665,686
	68,535	General Growth Properties, Inc. REIT		1,921,036
	1,360,538	Genworth Financial, Inc., Class A(b)		4,666,645
	20,611	Geo Group, Inc. (The) REIT		660,170
	133,848	Goldman Sachs Group, Inc. (The)		21,965,795
	29,086	Hancock Holding Co.		755,363
	11,861	Hanover Insurance Group, Inc. (The)		1,017,199
	163,056	Hartford Financial Services Group, Inc. (The)		7,236,425
	49,214	Hatteras Financial Corp. REIT		782,011
	121,718	HCP, Inc. REIT		4,117,720
	18,360	Healthcare Realty Trust, Inc. REIT		555,941
	18,995	Healthcare Trust of America, Inc., Class A REIT		548,766
	16,851	Highwoods Properties, Inc. REIT		787,447
	58,671	Hospitality Properties Trust REIT		1,501,391
	171,337	Host Hotels & Resorts, Inc. REIT		2,710,551
	216,839	Huntington Bancshares, Inc.		2,181,400
	9,202	Intercontinental Exchange, Inc.		2,208,756
	101,508	Invesco Ltd.(d)		3,147,763
	68,097	Invesco Mortgage Capital, Inc. REIT(d)		875,047
	54,016	Investors Bancorp, Inc.		623,885
	65,063	Iron Mountain, Inc. REIT		2,376,751
	39,920	Janus Capital Group, Inc.		582,832
	8,096	Jones Lang LaSalle, Inc.		932,416
	1,131,265	JPMorgan Chase & Co.		71,495,948
	19,945	Kemper Corp.		617,497
	257,507	KeyCorp		3,164,761
	13,241	Kilroy Realty Corp. REIT		858,149
	56,939	Kimco Realty Corp. REIT		1,601,125
	9,032	Lamar Advertising Co., Class A REIT		560,345
	27,520	LaSalle Hotel Properties REIT		657,728
	34,162	Legg Mason, Inc.		1,096,942
	137,218	Leucadia National Corp.		2,288,796

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, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	79,158	Lexington Realty Trust REIT	$	695,007
	40,183	Liberty Property Trust REIT		1,402,387
	107,014	Lincoln National Corp.		4,649,758
	116,149	Loews Corp.		4,608,792
	33,381	LPL Financial Holdings, Inc.(c)		881,258
	28,191	M&T Bank Corp.		3,335,559
	22,149	Macerich Co. (The) REIT		1,685,096
	41,902	Mack-Cali Realty Corp. REIT		1,071,015
	2,140	Markel Corp.(b)		1,924,095
	74,965	Marsh & McLennan Cos., Inc.		4,734,040
	144,756	MBIA, Inc.(b)		1,129,097
	8,935	Mercury General Corp.		472,662
	424,206	MetLife, Inc.		19,131,691
	132,088	MFA Financial, Inc. REIT		912,728
	10,018	Mid-America Apartment Communities, Inc. REIT		958,823
	14,320	Moody’s Corp.		1,370,710
	432,733	Morgan Stanley		11,709,755
	8,024	MSCI, Inc.		609,343
	20,107	Nasdaq, Inc.		1,240,803
	16,206	National Retail Properties, Inc. REIT		709,175
	292,371	Navient Corp.		3,996,712
	70,838	New Residential Investment Corp. REIT		857,140
	158,902	New York Community Bancorp, Inc.		2,388,297
	46,652	Northern Trust Corp.		3,316,024
	66,970	NorthStar Realty Finance Corp. REIT		856,546
	77,896	Old Republic International Corp.		1,440,297
	17,607	OMEGA Healthcare Investors, Inc. REIT		594,588
	44,080	Outfront Media, Inc. REIT		956,095
	19,161	PacWest Bancorp		766,057
	36,650	Paramount Group, Inc. REIT		612,055
	44,078	PennyMac Mortgage Investment Trust REIT		599,020
	101,353	People’s United Financial, Inc.(c)		1,570,972
	89,121	PHH Corp.(b)		1,143,422
	51,705	Piedmont Office Realty Trust, Inc., Class A REIT		1,029,447
	140,243	PNC Financial Services Group, Inc. (The)		12,310,531
	51,453	Popular, Inc.		1,529,183
	92,162	Principal Financial Group, Inc.		3,933,474
	15,746	ProAssurance Corp.		751,557
	144,152	Progressive Corp. (The)		4,699,355
	93,545	Prologis, Inc. REIT		4,247,878
	15,691	Prosperity Bancshares, Inc.		828,014
	204,744	Prudential Financial, Inc.		15,896,324
	9,604	Public Storage REIT		2,351,155
	24,161	Raymond James Financial, Inc.		1,260,479
	41,577	Rayonier, Inc. REIT		1,026,120
	38,241	Realogy Holdings Corp.(b)		1,366,733
	22,596	Realty Income Corp. REIT		1,337,683
	11,196	Regency Centers Corp. REIT		825,145
	493,136	Regions Financial Corp.		4,625,616
	25,046	Reinsurance Group of America, Inc.		2,384,880
	8,150	RenaissanceRe Holdings Ltd. (Bermuda)		903,917
	58,399	Retail Properties of America, Inc., Class A REIT		933,800

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	8,750	RLI Corp.	$	544,075
	36,799	RLJ Lodging Trust REIT		775,355
	10,287	Ryman Hospitality Properties, Inc. REIT		530,089
	26,121	S&P Global, Inc.		2,791,029
	81,388	Santander Consumer USA Holdings, Inc.(b)		1,071,880
	73,171	Senior Housing Properties Trust REIT		1,286,346
	5,138	Signature Bank(b)		708,171
	28,754	Simon Property Group, Inc. REIT		5,784,442
	17,232	SL Green Realty Corp. REIT		1,810,739
	293,946	SLM Corp.(b)		1,990,014
	69,078	Spirit Realty Capital, Inc. REIT		789,562
	57,611	Starwood Property Trust, Inc. REIT		1,115,349
	98,127	State Street Corp.		6,113,312
	22,525	Stifel Financial Corp.(b)		741,298
	40,314	Sunstone Hotel Investors, Inc. REIT		516,422
	162,611	SunTrust Banks, Inc.		6,787,383
	10,611	SVB Financial Group(b)		1,106,515
	241,679	Synchrony Financial(b)		7,388,127
	27,741	Synovus Financial Corp.		864,410
	39,269	T. Rowe Price Group, Inc.		2,956,563
	10,653	Taubman Centers, Inc. REIT		739,851
	50,597	TCF Financial Corp.		690,143
	29,636	TD Ameritrade Holding Corp.		884,042
	29,841	Torchmark Corp.		1,727,496
	106,112	Travelers Cos., Inc. (The)		11,661,709
	116,408	Two Harbors Investment Corp. REIT		911,475
	370,644	U.S. Bancorp		15,822,792
	33,249	UDR, Inc. REIT		1,161,055
	51,777	Umpqua Holdings Corp.		819,630
	101,168	Unum Group		3,460,957
	23,116	Validus Holdings Ltd.		1,065,416
	72,758	Valley National Bancorp		688,291
	60,988	Ventas, Inc. REIT		3,788,575
	181,908	VEREIT, Inc. REIT		1,615,343
	29,377	Vornado Realty Trust REIT		2,812,260
	120,194	Voya Financial, Inc.		3,902,699
	27,410	W.R. Berkley Corp.		1,534,960
	28,610	Waddell & Reed Financial, Inc., Class A		581,927
	25,146	Washington Federal, Inc.		610,796
	17,936	Webster Financial Corp.		657,175
	19,248	Weingarten Realty Investors REIT		710,636
	1,186,859	Wells Fargo & Co.		59,319,213
	64,557	Welltower, Inc. REIT		4,481,547
	210,941	Weyerhaeuser Co. REIT		6,775,425
	12,333	Willis Towers Watson PLC		1,540,392
	15,629	WP Carey, Inc. REIT		954,776
	68,918	WP GLIMCHER, Inc. REIT		722,950
	34,677	Xenia Hotels & Resorts, Inc. REIT		533,332
	74,047	XL Group PLC		2,423,558
	61,565	Zions Bancorporation		1,694,269
				887,117,465
		Health Care—10.0%
	243,965	Abbott Laboratories		9,490,238
	145,690	AbbVie, Inc.		8,887,090
	73,160	Aetna, Inc.		8,213,673

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, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Health Care (continued)
	36,341	Agilent Technologies, Inc.	$	1,487,074
	9,494	Alere, Inc.(b)		370,266
	6,707	Alexion Pharmaceuticals, Inc.(b)		934,151
	20,928	Allergan PLC(b)		4,532,168
	95,895	AmerisourceBergen Corp.		8,160,664
	73,213	Amgen, Inc.		11,589,618
	7,939	AmSurg Corp.(b)		642,900
	89,705	Anthem, Inc.		12,627,773
	35,632	Baxalta, Inc.		1,494,762
	90,963	Baxter International, Inc.		4,022,384
	23,101	Becton, Dickinson and Co.		3,725,267
	15,913	Biogen, Inc.(b)		4,375,916
	3,796	Bio-Rad Laboratories, Inc., Class A(b)		538,463
	110	Bio-Rad Laboratories, Inc., Class B(b)		14,850
	106,484	Boston Scientific Corp.(b)		2,334,129
	194,907	Bristol-Myers Squibb Co.		14,068,387
	72,124	Brookdale Senior Living, Inc.(b)		1,331,409
	5,799	C.R. Bard, Inc.		1,230,374
	131,193	Cardinal Health, Inc.		10,293,403
	28,665	Celgene Corp.(b)		2,964,248
	23,496	Centene Corp.(b)		1,455,812
	22,529	Cerner Corp.(b)		1,264,778
	35,974	Cigna Corp.		4,983,838
	171,517	Community Health Systems, Inc.(b)		3,272,544
	4,375	Cooper Cos., Inc. (The)		669,725
	45,854	DaVita HealthCare Partners, Inc.(b)		3,388,611
	14,773	Dentsply Sirona, Inc.		880,471
	10,927	Edwards Lifesciences Corp.(b)		1,160,557
	161,008	Eli Lilly & Co.		12,160,934
	13,872	Endo International PLC(b)		374,544
	42,015	Envision Healthcare Holdings, Inc.(b)		950,799
	209,368	Express Scripts Holding Co.(b)		15,436,703
	90,038	Gilead Sciences, Inc.		7,942,252
	23,092	Halyard Health, Inc.(b)		650,271
	110,639	HCA Holdings, Inc.(b)		8,919,716
	16,447	HealthSouth Corp.		681,893
	11,438	Henry Schein, Inc.(b)		1,929,591
	23,503	Hologic, Inc.(b)		789,466
	34,182	Humana, Inc.		6,052,607
	3,858	Illumina, Inc.(b)		520,791
	20,141	IMS Health Holdings, Inc.(b)		536,556
	2,286	Intuitive Surgical, Inc.(b)		1,431,859
	421,779	Johnson & Johnson		47,272,990
	79,791	Kindred Healthcare, Inc.		1,177,715
	16,668	Laboratory Corp. of America Holdings(b)		2,088,834
	15,235	LifePoint Health, Inc.(b)		1,029,277
	12,365	Magellan Health, Inc.(b)		871,238
	18,907	Mallinckrodt PLC(b)		1,182,066
	88,501	McKesson Corp.		14,852,238
	12,722	MEDNAX, Inc.(b)		906,951
	178,790	Medtronic PLC		14,151,229
	607,423	Merck & Co., Inc.		33,311,077
	1,836	Mettler-Toledo International, Inc.(b)		657,196
	11,240	Molina Healthcare, Inc.(b)		581,782
	41,206	Mylan NV(b)		1,718,702
	26,127	Owens & Minor, Inc.		950,762

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Health Care (continued)
	15,607	Patterson Cos., Inc.	$	676,563
	157,363	PDL BioPharma, Inc.		593,259
	13,386	PerkinElmer, Inc.		674,922
	14,329	Perrigo Co. PLC		1,385,184
	1,433,259	Pfizer, Inc.		46,881,902
	33,180	Quest Diagnostics, Inc.		2,494,141
	13,230	Quintiles Transnational Holdings, Inc.(b)		913,796
	1,643	Regeneron Pharmaceuticals, Inc.(b)		618,935
	11,055	ResMed, Inc.		616,869
	62,765	Select Medical Holdings Corp.(b)		839,796
	43,101	St. Jude Medical, Inc.		3,284,296
	7,920	STERIS PLC		559,706
	27,922	Stryker Corp.		3,043,777
	4,972	Teleflex, Inc.		774,538
	81,209	Tenet Healthcare Corp.(b)		2,573,513
	39,805	Thermo Fisher Scientific, Inc.		5,741,871
	4,309	United Therapeutics Corp.(b)		453,307
	170,168	UnitedHealth Group, Inc.		22,407,722
	14,193	Universal Health Services, Inc., Class B		1,897,320
	12,367	Varian Medical Systems, Inc.(b)		1,003,953
	9,211	VCA, Inc.(b)		580,017
	6,855	Waters Corp.(b)		892,247
	14,534	WellCare Health Plans, Inc.(b)		1,307,915
	18,715	Zimmer Biomet Holdings, Inc.		2,166,636
	33,649	Zoetis, Inc.		1,582,512
				413,500,279
		Industrials—10.5%
	82,106	3M Co.		13,742,902
	19,075	ABM Industries, Inc.		613,643
	2,385	Acuity Brands, Inc.		581,678
	39,653	ADT Corp. (The)		1,664,633
	48,913	AECOM(b)		1,589,183
	50,237	AerCap Holdings NV (Ireland)(b)		2,009,982
	34,337	AGCO Corp.		1,835,999
	18,246	Air Lease Corp.		556,138
	32,736	Allison Transmission Holdings, Inc.		943,124
	22,187	American Airlines Group, Inc.		769,667
	26,304	AMETEK, Inc.		1,264,959
	17,376	Armstrong Flooring, Inc.(b)		252,995
	34,752	Armstrong World Industries, Inc.(b)		1,418,229
	77,031	Avis Budget Group, Inc.(b)		1,933,478
	123,136	Boeing Co. (The)		16,598,733
	18,191	Brink’s Co. (The)		615,583
	28,449	C.H. Robinson Worldwide, Inc.		2,019,026
	8,997	Carlisle Cos., Inc.		916,794
	222,103	Caterpillar, Inc.		17,261,845
	37,161	Chicago Bridge & Iron Co. NV		1,495,730
	12,365	Cintas Corp.		1,110,130
	14,773	Clean Harbors, Inc.(b)		729,786
	34,844	Colfax Corp.(b)		1,129,991
	45,341	Covanta Holding Corp.		737,245
	11,015	Crane Co.		612,104
	238,809	CSX Corp.		6,512,321
	46,304	Cummins, Inc.		5,418,957
	8,254	Curtiss-Wright Corp.		632,091

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, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrials (continued)
	61,386	Danaher Corp.	$	5,939,095
	107,394	Deere & Co.(c)		9,032,909
	31,459	Delta Air Lines, Inc.		1,310,897
	9,798	Deluxe Corp.		615,118
	21,201	Donaldson Co., Inc.		692,849
	35,348	Dover Corp.		2,322,364
	6,107	Dun & Bradstreet Corp. (The)		674,274
	111,134	Eaton Corp. PLC		7,031,448
	16,006	EMCOR Group, Inc.		775,971
	174,766	Emerson Electric Co.		9,547,467
	9,943	EnerSys		580,373
	10,093	Equifax, Inc.		1,213,683
	24,213	Essendant, Inc.		745,518
	12,699	Esterline Technologies Corp.(b)		871,913
	28,731	Expeditors International of Washington, Inc.		1,425,345
	33,960	Fastenal Co.(c)		1,588,988
	59,954	FedEx Corp.		9,899,005
	28,098	Flowserve Corp.		1,371,463
	67,238	Fluor Corp.		3,675,229
	16,066	Fortune Brands Home & Security, Inc.		890,217
	13,712	FTI Consulting, Inc.(b)		552,594
	13,607	GATX Corp.		625,106
	20,448	Generac Holdings, Inc.(b)		779,478
	80,949	General Cable Corp.		1,266,042
	56,711	General Dynamics Corp.		7,969,030
	2,066,458	General Electric Co.		63,543,583
	12,610	Genesee & Wyoming, Inc., Class A(b)		821,037
	91,525	Harsco Corp.		648,912
	44,546	HD Supply Holdings, Inc.(b)		1,527,037
	418,350	Hertz Global Holdings, Inc.(b)		3,873,921
	12,841	Hexcel Corp.		581,312
	107,132	Honeywell International, Inc.		12,241,974
	13,251	Hub Group, Inc., Class A(b)		510,429
	10,133	Hubbell, Inc.		1,071,666
	7,654	Huntington Ingalls Industries, Inc.		1,108,070
	9,370	IDEX Corp.		767,403
	7,087	IHS, Inc., Class A(b)		872,977
	52,476	Illinois Tool Works, Inc.		5,484,792
	52,131	Ingersoll-Rand PLC		3,416,666
	14,751	ITT Corp.		565,996
	11,430	J.B. Hunt Transport Services, Inc.		947,318
	60,406	Jacobs Engineering Group, Inc.(b)		2,692,899
	107,302	Joy Global, Inc.(c)		2,285,533
	15,028	Kansas City Southern		1,423,903
	21,420	KAR Auction Services, Inc.		805,392
	80,230	KBR, Inc.		1,248,379
	38,221	Kennametal, Inc.		893,607
	16,052	Kirby Corp.(b)		1,024,439
	26,179	KLX, Inc.(b)		882,756
	25,409	L-3 Communications Holdings, Inc.		3,342,046
	10,035	Lincoln Electric Holdings, Inc.		628,893
	50,131	Lockheed Martin Corp.		11,649,442
	36,470	Manitowoc Co., Inc. (The)(c)		207,879
	23,515	Manitowoc Foodservice, Inc.(b)		352,960
	31,184	ManpowerGroup, Inc.		2,402,104

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrials (continued)
	40,022	Masco Corp.	$	1,229,076
	41,040	MasTec, Inc.(b)		929,966
	72,243	Meritor, Inc.(b)		614,065
	12,892	Moog, Inc., Class A(b)		629,903
	103,812	MRC Global, Inc.(b)		1,451,292
	8,836	MSC Industrial Direct Co., Inc., Class A		684,790
	98,249	Navistar International Corp.(b)(c)		1,482,577
	41,286	Nielsen Holdings PLC		2,152,652
	82,410	Norfolk Southern Corp.		7,425,965
	32,334	Northrop Grumman Corp.		6,669,211
	57,426	NOW, Inc.(b)(c)		1,037,114
	11,442	Old Dominion Freight Line, Inc.(b)		755,744
	7,176	Orbital ATK, Inc.		624,312
	33,922	Oshkosh Corp.		1,657,090
	25,712	Owens Corning		1,184,552
	89,517	PACCAR, Inc.		5,273,446
	32,316	Parker-Hannifin Corp.		3,749,302
	33,419	Pentair PLC (United Kingdom)		1,940,976
	87,058	Pitney Bowes, Inc.		1,825,606
	89,087	Quanta Services, Inc.(b)		2,113,144
	138,518	R.R. Donnelley & Sons Co.		2,410,213
	53,170	Raytheon Co.		6,718,030
	12,463	Regal Beloit Corp.		802,866
	66,341	Republic Services, Inc.		3,122,671
	28,495	Rexnord Corp.(b)		621,191
	21,025	Robert Half International, Inc.		805,468
	19,623	Rockwell Automation, Inc.		2,226,622
	17,835	Rockwell Collins, Inc.		1,572,869
	8,335	Roper Technologies, Inc.		1,467,710
	25,236	Rush Enterprises, Inc., Class A(b)		496,897
	27,015	Ryder System, Inc.		1,861,874
	20,694	Sensata Technologies Holding NV(b)		779,543
	6,912	Snap-on, Inc.		1,100,943
	19,950	Southwest Airlines Co.		889,970
	22,629	Spirit AeroSystems Holdings, Inc., Class A(b)		1,066,957
	45,327	SPX FLOW, Inc.(b)		1,357,997
	32,877	Stanley Black & Decker, Inc.		3,679,594
	7,483	Stericycle, Inc.(b)		715,075
	31,176	Swift Transportation Co., Class A(b)		518,145
	44,734	TAL International Group, Inc.(b)		764,951
	7,484	Teledyne Technologies, Inc.(b)		695,638
	41,386	Terex Corp.		988,712
	63,311	Textron, Inc.		2,448,869
	22,862	Timken Co. (The)		814,573
	8,191	TransDigm Group, Inc.(b)		1,866,483
	59,363	Trinity Industries, Inc.		1,158,172
	28,209	Triumph Group, Inc.		1,020,602
	69,660	Tyco International PLC		2,683,303
	146,172	Union Pacific Corp.		12,750,584
	26,723	United Continental Holdings, Inc.(b)		1,224,181
	116,407	United Parcel Service, Inc., Class B		12,230,883
	30,272	United Rentals, Inc.(b)		2,026,105
	189,937	United Technologies Corp.		19,823,725
	5,171	Valmont Industries, Inc.		725,905
	8,417	Verisk Analytics, Inc.(b)		652,991

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, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrials (continued)
	9,212	W.W. Grainger, Inc.(c)	$	2,160,398
	7,214	WABCO Holdings, Inc.(b)		809,122
	7,383	Wabtec Corp.		612,272
	12,357	Waste Connections, Inc.		831,379
	93,620	Waste Management, Inc.		5,503,920
	4,666	Watsco, Inc.		627,437
	25,799	WESCO International, Inc.(b)		1,516,723
	26,132	Xylem, Inc.		1,091,795
	66,432	YRC Worldwide, Inc.(b)		611,174
				435,471,962
		Information Technology—12.0%
	77,960	Accenture PLC, Class A		8,803,243
	76,029	Activision Blizzard, Inc.		2,620,720
	27,268	Adobe Systems, Inc.(b)		2,569,191
	316,707	Advanced Micro Devices, Inc.(b)(c)		1,124,310
	17,396	Akamai Technologies, Inc.(b)		887,022
	7,289	Alliance Data Systems Corp.(b)		1,481,927
	19,520	Alphabet, Inc., Class A(b)		13,817,818
	19,584	Alphabet, Inc., Class C(b)		13,571,908
	18,661	Amdocs Ltd.		1,055,093
	108,659	Amkor Technology, Inc.(b)		620,443
	26,113	Amphenol Corp., Class A		1,457,889
	43,742	Analog Devices, Inc.		2,463,549
	20,724	Anixter International, Inc.(b)		1,291,105
	7,258	ANSYS, Inc.(b)		658,809
	635,026	Apple, Inc.		59,527,337
	198,869	Applied Materials, Inc.		4,070,848
	61,456	Arrow Electronics, Inc.(b)		3,816,418
	17,055	Autodesk, Inc.(b)		1,020,230
	50,712	Automatic Data Processing, Inc.		4,484,969
	75,004	Avnet, Inc.		3,084,164
	25,055	Benchmark Electronics, Inc.(b)		486,568
	49,359	Booz Allen Hamilton Holding Corp.		1,360,828
	10,793	Broadcom Ltd. (Singapore)		1,573,080
	13,231	Broadridge Financial Solutions, Inc.		791,743
	59,782	Brocade Communications Systems, Inc.		574,505
	71,568	CA, Inc.		2,122,707
	7,875	CACI International, Inc., Class A(b)		757,181
	23,977	Cadence Design Systems, Inc.(b)		556,027
	17,226	CDK Global, Inc.		819,441
	29,805	CDW Corp.		1,147,492
	10,623	Check Point Software Technologies Ltd. (Israel)(b)(c)		880,328
	822,019	Cisco Systems, Inc.		22,597,302
	14,474	Citrix Systems, Inc.(b)		1,184,552
	54,076	Cognizant Technology Solutions Corp., Class A(b)		3,156,416
	29,453	CommScope Holding, Inc.(b)		895,666
	46,129	Computer Sciences Corp.		1,528,254
	298,465	Corning, Inc.		5,572,341
	22,949	Cree, Inc.(b)(c)		562,480
	38,059	CSRA, Inc.		988,012
	23,937	Diebold, Inc.		628,825
	5,786	DST Systems, Inc.		698,254
	114,613	eBay, Inc.(b)		2,799,996

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	16,436	EchoStar Corp., Class A(b)	$	672,561
	17,699	Electronic Arts, Inc.(b)		1,094,683
	313,025	EMC Corp.		8,173,083
	6,761	F5 Networks, Inc.(b)		708,215
	60,608	Facebook, Inc., Class A(b)		7,126,289
	25,226	Fairchild Semiconductor International, Inc.(b)		504,520
	43,941	Fidelity National Information Services, Inc.		2,891,318
	16,241	First Solar, Inc.(b)		906,897
	20,068	Fiserv, Inc.(b)		1,961,045
	5,013	FleetCor Technologies, Inc.(b)		775,411
	366,434	Flextronics International Ltd.(b)		4,452,173
	19,993	FLIR Systems, Inc.		603,988
	21,658	Genpact Ltd.(b)		604,042
	21,163	Harris Corp.		1,693,252
	953,403	Hewlett Packard Enterprise Co.		15,883,694
	872,132	HP, Inc.		10,701,060
	14,703	IAC/InterActiveCorp.		681,337
	132,166	Ingram Micro, Inc., Class A		4,619,202
	1,167,896	Intel Corp.		35,363,891
	241,814	International Business Machines Corp.		35,290,335
	16,149	Intuit, Inc.		1,629,273
	93,566	Jabil Circuit, Inc.		1,624,306
	51,892	Juniper Networks, Inc.		1,214,273
	36,593	Keysight Technologies, Inc.(b)		954,345
	26,170	KLA-Tencor Corp.		1,830,330
	17,015	Lam Research Corp.		1,299,946
	18,293	Leidos Holdings, Inc.		907,516
	28,604	Lexmark International, Inc., Class A		1,104,114
	29,021	Linear Technology Corp.		1,290,854
	5,631	LinkedIn Corp., Class A(b)		705,621
	136,666	Marvell Technology Group Ltd. (Bermuda)		1,363,927
	41,600	MasterCard, Inc., Class A		4,034,784
	48,080	Maxim Integrated Products, Inc.		1,717,418
	33,903	Microchip Technology, Inc.		1,647,347
	438,681	Micron Technology, Inc.(b)		4,715,821
	873,711	Microsoft Corp.		43,571,968
	26,864	Motorola Solutions, Inc.		2,019,904
	56,672	NCR Corp.(b)		1,648,588
	65,592	NetApp, Inc.		1,550,595
	31,245	Nuance Communications, Inc.(b)		536,789
	45,545	NVIDIA Corp.		1,618,214
	14,743	NXP Semiconductors NV (Netherlands)(b)		1,257,283
	105,561	ON Semiconductor Corp.(b)		999,663
	457,719	Oracle Corp.		18,244,679
	40,566	Paychex, Inc.		2,114,300
	76,833	PayPal Holdings, Inc.(b)		3,010,317
	31,916	Qorvo, Inc.(b)		1,437,177
	291,754	QUALCOMM, Inc.		14,739,412
	7,995	Red Hat, Inc.(b)		586,593
	17,115	salesforce.com, inc.(b)		1,297,317
	34,427	SanDisk Corp.		2,586,500
	51,320	Sanmina Corp.(b)		1,213,718
	13,141	ScanSource, Inc.(b)		534,576
	10,784	Science Applications International Corp.		572,522
	107,939	Seagate Technology PLC		2,349,832

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, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	10,449	Skyworks Solutions, Inc.	$	698,202
	179,565	Symantec Corp.		2,988,859
	9,089	SYNNEX Corp.		750,479
	20,697	Synopsys, Inc.(b)		983,521
	72,597	TE Connectivity Ltd. (Switzerland)		4,318,069
	42,755	Tech Data Corp.(b)		2,936,841
	37,814	Teradata Corp.(b)		956,694
	30,851	Teradyne, Inc.		583,392
	135,422	Texas Instruments, Inc.		7,724,471
	16,531	Total System Services, Inc.		845,395
	34,880	Trimble Navigation Ltd.(b)		835,376
	51,676	Unisys Corp.(b)(c)		398,422
	10,002	Vantiv, Inc., Class A(b)		545,509
	6,987	VeriSign, Inc.(b)(c)		603,677
	97,449	Visa, Inc., Class A		7,526,961
	51,052	Vishay Intertechnology, Inc.		620,792
	72,613	Western Digital Corp.		2,967,330
	109,196	Western Union Co. (The)		2,183,920
	530,170	Xerox Corp.		5,089,632
	32,106	Xilinx, Inc.		1,383,126
	231,106	Yahoo!, Inc.(b)		8,458,480
				496,144,957
		Materials—4.4%
	32,535	Air Products & Chemicals, Inc.		4,746,531
	7,619	Airgas, Inc.		1,085,250
	227,163	AK Steel Holding Corp.(b)(c)		1,063,123
	15,340	Albemarle Corp.		1,014,894
	510,263	Alcoa, Inc.		5,699,638
	86,312	Allegheny Technologies, Inc.(c)		1,410,338
	8,938	AptarGroup, Inc.		679,288
	15,975	Ashland, Inc.		1,782,810
	19,053	Avery Dennison Corp.		1,383,438
	25,659	Axalta Coating Systems Ltd.(b)		730,512
	40,583	Axiall Corp.		955,730
	22,616	Ball Corp.		1,614,330
	24,287	Bemis Co., Inc.		1,218,722
	25,450	Berry Plastics Group, Inc.(b)		916,709
	18,017	Cabot Corp.		879,049
	16,427	Carpenter Technology Corp.		581,680
	25,611	Celanese Corp., Series A		1,810,698
	76,885	CF Industries Holdings, Inc.		2,542,587
	367,603	Chemours Co. (The)		3,352,539
	24,946	Chemtura Corp.(b)		694,746
	421,623	Cliffs Natural Resources, Inc.(b)(c)		2,221,953
	63,738	Commercial Metals Co.		1,142,185
	7,107	Compass Minerals International, Inc.		532,741
	109,735	Constellium NV, Class A (Netherlands)(b)		639,755
	34,207	Crown Holdings, Inc.(b)		1,811,603
	38,031	Domtar Corp.		1,469,518
	290,385	Dow Chemical Co. (The)		15,277,155
	182,887	E.I. du Pont de Nemours & Co.		12,054,082
	35,432	Eastman Chemical Co.		2,706,296
	28,007	Ecolab, Inc.		3,220,245
	25,894	FMC Corp.		1,120,174
	1,516,466	Freeport-McMoRan, Inc.(c)		21,230,524

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Materials (continued)
	79,274	Graphic Packaging Holding Co.	$	1,052,759
	133,477	Huntsman Corp.		2,100,928
	9,578	International Flavors & Fragrances, Inc.		1,144,284
	158,561	International Paper Co.		6,860,934
	125,387	LyondellBasell Industries NV, Class A		10,365,743
	7,996	Martin Marietta Materials, Inc.		1,353,163
	65,954	Monsanto Co.		6,178,571
	167,141	Mosaic Co. (The)		4,678,277
	1,678	NewMarket Corp.		681,369
	177,745	Newmont Mining Corp.		6,215,743
	117,285	Nucor Corp.		5,838,447
	39,431	Olin Corp.		859,201
	112,919	Owens-Illinois, Inc.(b)		2,084,485
	23,875	Packaging Corp. of America		1,549,010
	19,846	PolyOne Corp.		714,059
	39,114	PPG Industries, Inc.		4,317,794
	50,146	Praxair, Inc.		5,890,149
	26,708	Reliance Steel & Aluminum Co.		1,975,591
	26,553	RPM International, Inc.		1,341,723
	25,504	Sealed Air Corp.		1,207,869
	8,402	Sensient Technologies Corp.		565,035
	6,273	Sherwin-Williams Co. (The)		1,802,296
	9,527	Silgan Holdings, Inc.		483,400
	25,796	Sonoco Products Co.		1,209,574
	58,561	Southern Copper Corp. (Peru)(c)		1,737,505
	79,327	Steel Dynamics, Inc.		1,999,834
	261,820	United States Steel Corp.(c)		5,003,380
	11,430	Valspar Corp. (The)		1,219,467
	11,798	Vulcan Materials Co.		1,269,819
	9,972	W.R. Grace & Co.(b)		764,653
	55,144	WestRock Co.		2,307,776
				182,361,681
		Telecommunication Services—3.4%
	1,832,662	AT&T, Inc.		71,143,939
	335,392	CenturyLink, Inc.		10,380,382
	729,384	Frontier Communications Corp.(c)		4,055,375
	68,326	Leap Wireless Corp.(b)		172,181
	40,372	Level 3 Communications, Inc.(b)		2,109,841
	54,565	Telephone & Data Systems, Inc.		1,613,487
	52,549	T-Mobile US, Inc.(b)		2,064,125
	911,805	Verizon Communications, Inc.		46,447,347
	139,729	Windstream Holdings, Inc.(c)		1,212,848
				139,199,525
		Utilities—4.7%
	438,248	AES Corp. (The)		4,890,848
	25,809	AGL Resources, Inc.		1,699,781
	10,804	ALLETE, Inc.		607,077
	25,371	Alliant Energy Corp.		1,789,163
	73,826	Ameren Corp.		3,543,648
	133,500	American Electric Power Co., Inc.		8,477,250
	30,205	American Water Works Co., Inc.		2,197,716
	18,810	Aqua America, Inc.		595,525
	20,722	Atmos Energy Corp.		1,503,381
	17,824	Avista Corp.		714,208
	11,223	Black Hills Corp.(c)		680,002

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, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Utilities (continued)
	163,646	Calpine Corp.(b)	$	2,582,334
	175,544	CenterPoint Energy, Inc.		3,765,419
	62,543	CMS Energy Corp.		2,544,249
	86,560	Consolidated Edison, Inc.		6,457,376
	119,047	Dominion Resources, Inc.		8,508,289
	49,538	DTE Energy Co.		4,416,808
	198,865	Duke Energy Corp.		15,666,585
	100,604	Dynegy, Inc.(b)		1,773,648
	84,498	Edison International		5,974,854
	76,618	Entergy Corp.		5,760,141
	65,322	Eversource Energy		3,686,774
	382,817	Exelon Corp.		13,433,048
	203,637	FirstEnergy Corp.		6,636,530
	46,001	Great Plains Energy, Inc.		1,436,611
	34,901	Hawaiian Electric Industries, Inc.		1,140,914
	9,893	IDACORP, Inc.		719,518
	15,661	ITC Holdings Corp.		690,180
	81,604	MDU Resources Group, Inc.		1,636,976
	22,604	National Fuel Gas Co.		1,254,522
	18,555	New Jersey Resources Corp.		662,042
	82,721	NextEra Energy, Inc.		9,726,335
	51,167	NiSource, Inc.		1,162,003
	9,676	NorthWestern Corp.		549,984
	308,675	NRG Energy, Inc.		4,660,992
	59,005	OGE Energy Corp.		1,745,958
	10,160	ONE Gas, Inc.		594,055
	134,094	PG&E Corp.		7,804,271
	11,184	Piedmont Natural Gas Co., Inc.		668,803
	31,082	Pinnacle West Capital Corp.		2,258,107
	21,789	PNM Resources, Inc.		690,275
	22,907	Portland General Electric Co.		909,866
	177,834	PPL Corp.		6,693,672
	146,416	Public Service Enterprise Group, Inc.		6,754,170
	34,284	Questar Corp.		859,500
	32,694	SCANA Corp.		2,245,751
	51,772	Sempra Energy		5,350,636
	240,459	Southern Co. (The)		12,046,996
	12,479	Southwest Gas Corp.		810,012
	7,350	Spire, Inc.		470,106
	55,505	TECO Energy, Inc.		1,541,374
	46,544	UGI Corp.		1,872,930
	22,301	Vectren Corp.		1,089,404
	41,214	WEC Energy Group, Inc.		2,399,067
	32,220	Westar Energy, Inc.		1,662,874
	11,212	WGL Holdings, Inc.		761,183
	127,680	Xcel Energy, Inc.		5,111,030
				195,884,771
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $3,870,760,041)—100.0%		4,141,466,407

Number of Shares			Value
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—2.2%
	91,230,757	Invesco Liquid Assets Portfolio—Institutional Class, 0.44%(e)(f) (Cost $91,230,757)	$	91,230,757
		Total Investments (Cost $3,961,990,798)—102.2%		4,232,697,164
		Other assets less liabilities—(2.2)%		(90,296,628	)
		Net Assets—100.0%	$	4,142,400,536

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, 2016.

^(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. The rate shown is the 7-day SEC standardized yield as of April 30, 2016.

^(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 2H.

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, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—15.6%
	25,672	1-800-FLOWERS.COM, Inc., Class A(b)	$	201,525
	66,526	Aaron’s, Inc.		1,743,646
	22,312	AMC Networks, Inc., Class A(b)		1,455,412
	26,009	American Public Education, Inc.(b)		602,368
	7,328	America’s Car-Mart, Inc.(b)(c)		194,705
	224,677	Arcos Dorados Holdings, Inc., Class A (Argentina)(b)		932,410
	22,176	Arctic Cat, Inc.		368,787
	56,853	Ascent Capital Group, Inc., Series A(b)		856,775
	108,004	Barnes & Noble Education, Inc.(b)		1,010,917
	177,309	Barnes & Noble, Inc.		2,083,381
	7,891	Bassett Furniture Industries, Inc.		232,863
	79,375	Beazer Homes USA, Inc.(b)		652,463
	85,238	Belmond Ltd., Class A (United Kingdom)(b)		780,780
	32,684	Big 5 Sporting Goods Corp.		395,150
	1,246	Biglari Holdings, Inc.(b)		465,929
	12,629	BJ’s Restaurants, Inc.(b)		563,253
	32,072	Black Diamond, Inc.(b)		136,306
	7,985	Blue Nile, Inc.		205,853
	28,936	Bob Evans Farms, Inc.		1,317,745
	144,643	Bon-Ton Stores, Inc. (The)(c)		337,018
	14,494	Boot Barn Holdings, Inc.(b)(c)		118,851
	79,482	Boyd Gaming Corp.(b)		1,481,544
	34,548	Bravo Brio Restaurant Group, Inc.(b)		254,619
	37,098	Bridgepoint Education, Inc.(b)		353,915
	14,484	Bright Horizons Family Solutions, Inc.(b)		950,440
	44,727	Buckle, Inc. (The)(c)		1,294,399
	7,448	Buffalo Wild Wings, Inc.(b)		995,500
	14,590	Build-A-Bear Workshop, Inc.(b)		192,150
	3,116	Cable One, Inc.		1,430,119
	43,780	CalAtlantic Group, Inc.		1,417,159
	51,326	Caleres, Inc.		1,293,928
	50,245	Callaway Golf Co.		469,288
	8,924	Capella Education Co.		493,586
	299,178	Career Education Corp.(b)		1,597,611
	28,888	Carmike Cinemas, Inc.(b)		866,351
	11,472	Carriage Services, Inc.		280,261
	28,492	Carrols Restaurant Group, Inc.(b)		396,324
	16,892	Carter’s, Inc.		1,801,870
	22,945	Cato Corp. (The), Class A		839,558
	5,026	Cavco Industries, Inc.(b)		440,730
	97,345	Central European Media Enterprises Ltd., Class A (Bermuda)(b)(c)		258,938
	17,512	Century Communities, Inc.(b)		301,907
	24,706	Cheesecake Factory, Inc. (The)		1,260,253
	44,954	Chegg, Inc.(b)(c)		204,091
	13,092	Children’s Place, Inc. (The)		1,019,998
	22,128	Choice Hotels International, Inc.		1,121,004
	144,024	Christopher & Banks Corp.(b)		374,462
	5,085	Churchill Downs, Inc.		682,305
	5,524	Chuy’s Holdings, Inc.(b)		168,703
	23,494	Citi Trends, Inc.		421,952
	126,884	Clear Channel Outdoor Holdings, Inc., Class A		648,377
	57,822	ClubCorp Holdings, Inc.		771,924
	11,040	Columbia Sportswear Co.		646,613

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Discretionary (continued)
	37,348	Conn’s, Inc.(b)(c)	$	513,162
	24,380	Container Store Group, Inc. (The)(b)(c)		173,098
	23,979	Cooper-Standard Holding, Inc.(b)		1,849,021
	98,792	Crocs, Inc.(b)		824,913
	12,402	CSS Industries, Inc.		346,760
	225,868	CTC Media, Inc. (Russia)(b)		444,960
	4,970	Culp, Inc.		130,413
	526,872	Cumulus Media, Inc., Class A(b)		195,786
	13,431	Dave & Buster’s Entertainment, Inc.(b)		519,780
	18,609	Del Frisco’s Restaurant Group, Inc.(b)		296,441
	38,143	Denny’s Corp.(b)		377,234
	41,770	Destination Maternity Corp.(c)		291,137
	20,683	Diamond Resorts International, Inc.(b)(c)		438,686
	12,206	DineEquity, Inc.		1,049,716
	13,144	Domino’s Pizza, Inc.		1,588,847
	10,130	Dorman Products, Inc.(b)		544,893
	37,987	DreamWorks Animation SKG, Inc., Class A(b)		1,516,441
	15,377	Drew Industries, Inc.		996,891
	33,874	Dunkin’ Brands Group, Inc.		1,575,141
	27,847	E.W. Scripps Co. (The), Class A(b)		422,717
	16,980	Eldorado Resorts, Inc.(b)		222,608
	27,760	Entravision Communications Corp., Class A		220,692
	53,619	Eros International PLC, Class A(b)(c)		717,422
	18,634	Ethan Allen Interiors, Inc.		634,301
	88,540	Express, Inc.(b)		1,609,657
	47,783	Extended Stay America, Inc.		747,804
	134,307	Federal-Mogul Holdings Corp.(b)		1,240,997
	13,282	Fiesta Restaurant Group, Inc.(b)		426,485
	60,660	Finish Line, Inc. (The), Class A		1,198,035
	19,745	Five Below, Inc.(b)		823,367
	6,191	Flexsteel Industries, Inc.		253,150
	24,000	Francesca’s Holdings Corp.(b)		398,400
	59,167	Fred’s, Inc., Class A		867,980
	21,895	FTD Cos., Inc.(b)		608,900
	31,657	Fuel Systems Solutions, Inc.(b)		167,782
	12,437	Gentherm, Inc.(b)		456,935
	22,365	G-III Apparel Group Ltd.(b)		1,012,016
	27,911	Global Eagle Entertainment, Inc.(b)		223,567
	42,263	GoPro, Inc., Class A(b)(c)		534,204
	20,428	Grand Canyon Education, Inc.(b)		893,316
	52,748	Gray Television, Inc.(b)		677,812
	207,356	Groupon, Inc., Class A(b)		750,629
	146,560	Harte-Hanks, Inc.		266,739
	25,078	Haverty Furniture Cos., Inc.		468,206
	14,717	Helen of Troy Ltd.(b)		1,464,783
	80,763	hhgregg, Inc.(b)(c)		157,488
	23,585	Hibbett Sports, Inc.(b)		851,419
	6,523	Hooker Furniture Corp.		161,770
	30,326	Horizon Global Corp.(b)		372,100
	77,293	Houghton Mifflin Harcourt Co.(b)		1,585,279
	313,354	Hovnanian Enterprises, Inc., Class A(b)(c)		523,301
	30,783	HSN, Inc.		1,632,423
	25,657	Hyatt Hotels Corp., Class A(b)		1,228,457
	147,183	Iconix Brand Group, Inc.(b)(c)		1,248,112
	17,044	IMAX Corp.(b)		545,408
	6,343	Installed Building Products, Inc.(b)		168,597

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, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Discretionary (continued)
	19,132	International Speedway Corp., Class A	$	640,731
	43,025	Interval Leisure Group, Inc.(c)		607,513
	19,105	Intrawest Resorts Holdings, Inc.(b)		165,067
	16,645	iRobot Corp.(b)(c)		622,190
	25,607	Isle of Capri Casinos, Inc.(b)		381,544
	127,543	ITT Educational Services, Inc.(b)(c)		274,217
	14,820	J. Alexander’s Holdings, Inc.(b)		152,646
	15,921	Jack in the Box, Inc.		1,075,464
	43,368	JAKKS Pacific, Inc.(b)(c)		325,260
	37,854	John Wiley & Sons, Inc., Class A		1,877,180
	7,026	Johnson Outdoors, Inc., Class A		169,537
	68,576	K12, Inc.(b)		842,799
	16,238	Kandi Technologies Group, Inc. (China)(b)(c)		116,751
	38,741	Kate Spade & Co.(b)		996,806
	115,330	KB Home(c)		1,565,028
	18,874	Kirkland’s, Inc.		309,911
	24,608	Krispy Kreme Doughnuts, Inc.(b)		428,425
	97,379	La Quinta Holdings, Inc.(b)		1,243,530
	26,987	Lands’ End, Inc.(b)(c)		656,594
	33,442	La-Z-Boy, Inc.		865,145
	9,056	LGI Homes, Inc.(b)(c)		253,659
	9,664	Liberty Broadband Corp., Class A(b)		553,940
	25,597	Liberty Broadband Corp., Class C(b)		1,465,428
	58,953	Liberty TripAdvisor Holdings, Inc., Series A(b)		1,300,503
	4,827	Liberty Ventures, Series A(b)		193,080
	30,533	LifeLock, Inc.(b)		355,404
	16,479	Lifetime Brands, Inc.		284,592
	50,115	Lions Gate Entertainment Corp.		1,112,553
	16,617	Lithia Motors, Inc., Class A		1,379,543
	20,373	Loral Space & Communications, Inc.(b)		747,282
	24,861	Lululemon Athletica, Inc.(b)(c)		1,629,639
	64,987	Lumber Liquidators Holdings, Inc.(b)(c)		968,956
	40,730	M/I Homes, Inc.(b)		818,673
	20,856	Marcus Corp. (The)		403,564
	21,241	MarineMax, Inc.(b)		403,791
	12,997	Marriott Vacations Worldwide Corp.		814,132
	12,735	Mattress Firm Holding Corp.(b)(c)		496,920
	144,033	McClatchy Co. (The), Class A(b)		159,877
	53,253	MDC Holdings, Inc.		1,310,556
	24,513	MDC Partners, Inc., Class A(c)		496,143
	63,766	Media General, Inc.(b)		1,105,065
	36,567	Meredith Corp.		1,876,253
	43,566	Meritage Homes Corp.(b)		1,482,551
	25,587	Metaldyne Performance Group, Inc.		407,601
	55,822	Michaels Cos., Inc. (The)(b)		1,587,019
	73,477	Modine Manufacturing Co.(b)		794,286
	7,028	Monarch Casino & Resort, Inc.(b)		133,532
	10,823	Monro Muffler Brake, Inc.		749,168
	8,395	Motorcar Parts of America, Inc.(b)		269,228
	14,753	Movado Group, Inc.		416,182
	33,644	MSG Networks, Inc., Class A(b)		574,976
	10,322	NACCO Industries, Inc., Class A		614,365
	71,475	National CineMedia, Inc.		1,014,945
	7,726	Nautilus, Inc.(b)		136,287
	32,327	New Media Investment Group, Inc.		518,848
	86,897	New York Times Co. (The), Class A		1,114,020

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Discretionary (continued)
	11,606	Nexstar Broadcasting Group, Inc., Class A(c)	$	595,736
	13,223	Noodles & Co., Class A(b)(c)		147,436
	14,995	Nutrisystem, Inc.		330,190
	24,168	Overstock.com, Inc.(b)		352,611
	9,379	Oxford Industries, Inc.		622,953
	10,560	Papa John’s International, Inc.		597,590
	34,164	Party City Holdco, Inc.(b)		489,570
	50,474	Penn National Gaming, Inc.(b)		814,146
	27,965	Perry Ellis International, Inc.(b)		532,733
	19,672	PetMed Express, Inc.(c)		359,998
	233,693	Pier 1 Imports, Inc.		1,610,145
	52,149	Pinnacle Entertainment, Inc.(b)		575,725
	15,187	Pool Corp.		1,327,496
	3,116	Popeyes Louisiana Kitchen, Inc.(b)		167,516
	16,084	Potbelly Corp.(b)(c)		229,197
	23,187	Reading International, Inc., Class A(b)		300,735
	9,809	Red Robin Gourmet Burgers, Inc.(b)		636,212
	71,195	Regis Corp.(b)		973,236
	15,516	Restoration Hardware Holdings, Inc.(b)(c)		671,377
	18,783	Rocky Brands, Inc.		226,335
	176,124	Ruby Tuesday, Inc.(b)		774,946
	13,728	Ruth’s Hospitality Group, Inc.		218,001
	37,904	Scholastic Corp.		1,378,948
	99,600	Scientific Games Corp., Class A(b)		988,032
	29,358	Sears Hometown and Outlet Stores, Inc.(b)		198,754
	45,820	Select Comfort Corp.(b)		1,130,838
	35,211	Shiloh Industries, Inc.(b)		227,111
	14,298	Shoe Carnival, Inc.		366,458
	21,781	Shutterfly, Inc.(b)		1,001,490
	48,432	Sinclair Broadcast Group, Inc., Class A		1,553,214
	54,507	Sizmek, Inc.(b)		144,444
	42,679	Skechers U.S.A., Inc., Class A(b)		1,410,541
	37,141	Skullcandy, Inc.(b)		126,651
	24,459	Smith & Wesson Holding Corp.(b)		533,940
	27,735	SodaStream International Ltd. (Israel)(b)(c)		380,524
	17,946	Sonic Corp.		616,804
	69,202	Sotheby’s		1,885,062
	18,038	Speedway Motorsports, Inc.		316,026
	14,761	Sportsman’s Warehouse Holdings, Inc.(b)		167,980
	107,827	Stage Stores, Inc.(c)		793,607
	15,929	Standard Motor Products, Inc.		565,639
	27,240	Starz, Class A(b)		741,200
	75,929	Stein Mart, Inc.		549,726
	37,031	Steven Madden Ltd.(b)		1,296,455
	33,740	Stoneridge, Inc.(b)		481,132
	3,892	Strattec Security Corp.		205,887
	17,026	Strayer Education, Inc.(b)		845,171
	13,001	Sturm Ruger & Co., Inc.		832,454
	30,801	Superior Industries International, Inc.		804,522
	47,115	Taylor Morrison Home Corp., Class A(b)		678,456
	29,137	Tempur Sealy International, Inc.(b)		1,767,742
	4,044	Tesla Motors, Inc.(b)(c)		973,633
	24,722	Texas Roadhouse, Inc.		1,006,680
	9,740	Tile Shop Holdings, Inc. (The)(b)		173,762
	21,947	Tilly’s, Inc., Class A(b)		138,047
	26,226	TopBuild Corp.(b)		818,776

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, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Discretionary (continued)
	49,050	Tower International, Inc.	$	1,125,698
	105,161	TRI Pointe Homes, Inc.(b)		1,219,868
	20,372	TripAdvisor, Inc., Class A(b)		1,315,827
	73,039	Tuesday Morning Corp.(b)		633,979
	31,124	Tumi Holdings, Inc.(b)		830,388
	23,326	Unifi, Inc.(b)		600,878
	8,276	Universal Electronics, Inc.(b)		549,609
	72,138	Universal Technical Institute, Inc.		284,945
	10,371	Vail Resorts, Inc.		1,344,496
	19,055	Vera Bradley, Inc.(b)		334,225
	28,047	Vince Holding Corp.(b)(c)		173,330
	27,209	Vitamin Shoppe, Inc.(b)		744,710
	66,778	VOXX International Corp., Class A(b)		299,833
	3,861	Wayfair, Inc., Class A(b)		145,753
	16,517	WCI Communities, Inc.(b)		263,942
	52,647	Weight Watchers International, Inc.(b)(c)		681,779
	18,497	West Marine, Inc.(b)		185,340
	64,716	William Lyon Homes, Class A(b)(c)		912,496
	23,616	Winnebago Industries, Inc.(c)		511,050
	93,085	Wolverine World Wide, Inc.		1,763,961
	23,103	World Wrestling Entertainment, Inc., Class A(c)		384,434
	20,997	ZAGG, Inc.(b)		168,186
	23,534	Zumiez, Inc.(b)(c)		394,901
				172,624,311
		Consumer Staples—3.1%
	42,262	Adecoagro SA (Luxembourg)(b)		450,513
	20,683	Alliance One International, Inc.(b)		527,623
	10,590	Amira Nature Foods Ltd. (United Arab Emirates)(b)(c)		76,777
	31,668	B&G Foods, Inc.		1,305,038
	17,243	Blue Buffalo Pet Products, Inc.(b)(c)		426,937
	2,529	Boston Beer Co., Inc. (The), Class A(b)		394,726
	7,471	Calavo Growers, Inc.		427,117
	13,550	Cal-Maine Foods, Inc.(c)		687,798
	18,358	Central Garden & Pet Co.(b)		298,685
	65,962	Central Garden & Pet Co., Class A(b)		1,074,521
	17,634	Chefs’ Warehouse, Inc. (The)(b)		339,807
	2,203	Coca-Cola Bottling Co. Consolidated		351,092
	18,309	Coty, Inc., Class A(c)		556,594
	95,703	Elizabeth Arden, Inc.(b)(c)		979,042
	39,004	Fresh Del Monte Produce, Inc.		1,687,313
	15,622	Ingles Markets, Inc., Class A		563,486
	11,556	Inter Parfums, Inc.		353,845
	27,108	Inventure Foods, Inc.(b)		194,093
	5,777	J & J Snack Foods Corp.		584,228
	5,175	John B. Sanfilippo & Son, Inc.		286,333
	12,035	Lancaster Colony Corp.		1,402,077
	30,616	Landec Corp.(b)		344,430
	8,177	Medifast, Inc.		257,821
	6,099	National Beverage Corp.(b)		285,067
	8,618	Nutraceutical International Corp.(b)		203,299
	17,614	Omega Protein Corp.(b)		327,444
	6,509	Orchids Paper Products Co.		199,631
	32,447	Performance Food Group Co.(b)		839,728
	61,249	Pilgrim’s Pride Corp.(b)		1,648,211

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Staples (continued)
	22,903	Post Holdings, Inc., Class A(b)	$	1,645,351
	10,994	PriceSmart, Inc.		951,421
	9,706	Revlon, Inc., Class A(b)		353,590
	16,798	Sanderson Farms, Inc.(c)		1,541,049
	214	Seaboard Corp.(b)		642,642
	11,374	Seneca Foods Corp., Class A(b)		370,679
	46,134	Smart & Final Stores, Inc.(b)		734,453
	40,764	Snyder’s-Lance, Inc.		1,303,225
	80,426	SpartanNash Co.		2,227,800
	12,319	Spectrum Brands Holdings, Inc.(c)		1,399,438
	57,070	Sprouts Farmers Market, Inc.(b)		1,601,955
	105,668	SunOpta, Inc. (Canada)(b)		568,494
	10,485	Tootsie Roll Industries, Inc., Class A(c)		373,685
	2,464	USANA Health Sciences, Inc.(b)		291,836
	60,386	Vector Group Ltd.		1,304,338
	14,942	Village Super Market, Inc., Class A		364,585
	4,054	WD-40 Co.		414,724
	22,437	Weis Markets, Inc.		1,021,332
				34,183,873
		Energy—9.0%
	232,210	Abraxas Petroleum Corp.(b)		352,959
	96,985	Aegean Marine Petroleum Network, Inc. (Greece)(c)		779,759
	101,043	Alon USA Energy, Inc.(c)		1,060,952
	35,705	Antero Resources Corp.(b)		1,010,452
	551,723	Approach Resources, Inc.(b)(c)		1,616,548
	306,899	Archrock, Inc.		3,022,955
	19,790	Ardmore Shipping Corp. (Ireland)		185,037
	563,419	Basic Energy Services, Inc.(b)(c)		1,802,941
	513,645	Bill Barrett Corp.(b)(c)		4,088,614
	431,737	Bonanza Creek Energy, Inc.(b)(c)		1,675,140
	109,379	Bristow Group, Inc.		2,506,967
	620,499	C&J Energy Services Ltd.(b)(c)		899,724
	68,664	Callon Petroleum Co.(b)		721,659
	50,690	CARBO Ceramics, Inc.(c)		752,747
	55,390	Carrizo Oil & Gas, Inc.(b)		1,959,144
	37,797	Clayton Williams Energy, Inc.(b)(c)		685,260
	114,972	Clean Energy Fuels Corp.(b)(c)		328,820
	747,037	Cloud Peak Energy, Inc.(b)(c)		1,650,952
	446,226	Cobalt International Energy, Inc.(b)		1,441,310
	848,415	Comstock Resources, Inc.(b)(c)		690,695
	73,317	Contango Oil & Gas Co.(b)		922,328
	13,937	Core Laboratories NV(c)		1,862,819
	61,926	CVR Energy, Inc.(c)		1,503,563
	76,037	DHT Holdings, Inc.		436,452
	12,771	Diamondback Energy, Inc.(b)		1,105,713
	37,198	Dorian LPG Ltd.(b)		377,932
	27,409	Dril-Quip, Inc.(b)		1,776,651
	128,121	DryShips, Inc. (Greece)(b)		513,765
	185,240	Eclipse Resources Corp.(b)(c)		450,133
	502,670	EP Energy Corp., Class A(b)(c)		2,468,110
	63,007	Era Group, Inc.(b)		600,457
	790,122	EXCO Resources, Inc.(b)(c)		1,200,985
	95,896	Fairmount Santrol Holdings, Inc.(b)(c)		383,584
	122,284	Forum Energy Technologies, Inc.(b)		2,047,034
	18,799	Frank’s International NV(c)		313,003

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, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Energy (continued)
	37,218	Frontline Ltd. (Norway)(c)	$	306,676
	43,253	GasLog Ltd. (Monaco)(c)		554,071
	168,830	Gastar Exploration, Inc.(b)(c)		335,972
	44,075	Geospace Technologies Corp.(b)(c)		721,067
	99,959	Green Plains, Inc.		1,809,258
	32,342	Gulf Island Fabrication, Inc.		242,888
	16,931	Gulfmark Offshore, Inc., Class A(b)(c)		114,792
	1,279,686	Halcon Resources Corp.(b)(c)		1,561,217
	580,767	Helix Energy Solutions Group, Inc.(b)		5,012,019
	215,970	Hornbeck Offshore Services, Inc.(b)(c)		2,535,488
	25,252	InterOil Corp. (Singapore)(b)(c)		845,184
	39,507	Ion Geophysical Corp.(b)(c)		361,884
	153,296	Jones Energy, Inc., Class A(b)(c)		735,821
	1,260,754	Key Energy Services, Inc.(b)(c)		666,813
	139,421	Kosmos Energy Ltd.(b)		903,448
	276,126	Laredo Petroleum, Inc.(b)(c)		3,363,215
	34,059	Matador Resources Co.(b)(c)		733,971
	33,951	Matrix Service Co.(b)		639,637
	18,272	Memorial Resource Development Corp.(b)		238,998
	13,977	Natural Gas Services Group, Inc.(b)		321,331
	8,350	Navigator Holdings Ltd. (United Kingdom)(b)		127,254
	269,240	Newpark Resources, Inc.(b)		1,257,351
	80,141	Nordic American Tankers Ltd.(c)		1,234,973
	80,704	North Atlantic Drilling Ltd. (Norway)(b)(c)		305,061
	294,874	Northern Oil and Gas, Inc.(b)(c)		1,610,012
	808,668	Ocean Rig UDW, Inc. (Cyprus)(c)		1,698,203
	358,506	Pacific Drilling SA(b)		240,271
	138,016	Pacific Ethanol, Inc.(b)(c)		652,816
	11,081	Panhandle Oil and Gas, Inc., Class A		209,320
	459,584	Parker Drilling Co.(b)		1,406,327
	37,409	Parsley Energy, Inc., Class A(b)		876,119
	23,542	PDC Energy, Inc.(b)		1,478,202
	22,113	PHI, Inc.(b)		495,773
	579,250	Pioneer Energy Services Corp.(b)		1,801,468
	133,782	Renewable Energy Group, Inc.(b)		1,300,361
	7,503	REX American Resources Corp.(b)(c)		407,938
	509,365	Rex Energy Corp.(b)(c)		514,459
	86,948	Rice Energy, Inc.(b)		1,505,070
	11,554	RigNet, Inc.(b)		197,573
	61,903	RPC, Inc.(c)		935,973
	35,773	RSP Permian, Inc.(b)		1,095,012
	224,082	Sanchez Energy Corp.(b)(c)		2,014,497
	167,290	Scorpio Tankers, Inc. (Monaco)		1,047,235
	65,863	SemGroup Corp., Class A		2,019,360
	372,031	Seventy Seven Energy, Inc.(b)		70,946
	95,567	Ship Finance International Ltd. (Norway)(c)		1,449,751
	29,643	Synergy Resources Corp.(b)		214,022
	91,639	Teekay Tankers Ltd., Class A (Bermuda)		361,058
	81,034	Tesco Corp.		766,582
	144,302	TETRA Technologies, Inc.(b)		1,038,974
	431,933	Triangle Petroleum Corp.(b)(c)		193,895
	150,533	Tsakos Energy Navigation Ltd. (Greece)		957,390
	2,955,958	Ultra Petroleum Corp.(b)(c)		922,850
	47,774	US Silica Holdings, Inc.(c)		1,220,626
	168,876	VAALCO Energy, Inc.(b)		207,717
	488,496	W&T Offshore, Inc.(b)(c)		1,177,275

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Energy (continued)
	87,896	Westmoreland Coal Co.(b)(c)	$	626,698
	187,105	Willbros Group, Inc.(b)		598,736
				99,436,062
		Financials—24.1%
	14,953	1st Source Corp.		514,981
	32,439	Acadia Realty Trust REIT		1,093,194
	61,713	AG Mortgage Investment Trust, Inc. REIT		826,337
	7,886	Agree Realty Corp. REIT		305,819
	23,101	Alexander & Baldwin, Inc.		883,382
	1,047	Alexander’s, Inc. REIT		400,655
	12,862	Altisource Asset Management Corp. (U.S. Virgin Islands)(b)(c)		215,438
	12,252	Altisource Portfolio Solutions SA(b)(c)		383,365
	156,201	Altisource Residential Corp. REIT(c)		1,815,056
	22,438	American Assets Trust, Inc. REIT		890,115
	80,310	American Capital Mortgage Investment Corp. REIT		1,190,997
	90,127	American Homes 4 Rent, Class A REIT		1,425,809
	15,914	American National Insurance Co.		1,847,934
	12,676	Ameris Bancorp		398,026
	9,096	AMERISAFE, Inc.		490,092
	40,999	AmTrust Financial Services, Inc.		1,018,825
	3,488	Anchor BanCorp Wisconsin, Inc.(b)(c)		166,936
	249,240	Anworth Mortgage Asset Corp. REIT		1,176,413
	34,237	Apollo Commercial Real Estate Finance, Inc. REIT		545,395
	64,802	Apollo Residential Mortgage, Inc. REIT		878,715
	38,007	Ares Commercial Real Estate Corp. REIT		456,084
	29,257	Argo Group International Holdings Ltd.		1,608,257
	42,500	Arlington Asset Investment Corp., Class A(c)		549,950
	24,681	Armada Hoffler Properties, Inc. REIT		288,768
	42,293	ARMOUR Residential REIT, Inc. REIT		899,995
	9,772	Arrow Financial Corp.		275,180
	10,240	Artisan Partners Asset Management, Inc., Class A		330,854
	34,229	Ashford Hospitality Prime, Inc. REIT		383,022
	197,820	Ashford Hospitality Trust, Inc. REIT		1,105,814
	85,244	Astoria Financial Corp.		1,282,070
	10,193	Baldwin & Lyons, Inc., Class B		249,117
	22,245	Banc of California, Inc.		452,686
	6,251	BancFirst Corp.		389,875
	39,503	Banco Latinoamericano de Comercio Exterior SA, Class E (Panama)		1,021,548
	72,565	Bancorp, Inc. (The)(b)		411,444
	67,438	BancorpSouth, Inc.		1,584,119
	27,073	Bank Mutual Corp.		218,750
	4,173	Bank of Marin Bancorp		204,560
	22,179	Bank of the Ozarks, Inc.		915,993
	8,175	Banner Corp.		349,726
	53,252	BBCN Bancorp, Inc.		831,796
	43,046	Beneficial Bancorp, Inc.(b)		597,909
	23,292	Berkshire Hills Bancorp, Inc.		632,145
	146,555	BGC Partners, Inc., Class A		1,330,719
	47,148	Blackstone Mortgage Trust, Inc., Class A REIT		1,295,627
	22,092	Blue Hills Bancorp, Inc.		322,101

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, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	13,254	BNC Bancorp	$	296,359
	21,254	BofI Holding, Inc.(b)(c)		432,944
	23,409	BOK Financial Corp.(c)		1,408,754
	67,014	Boston Private Financial Holdings, Inc.		818,911
	7,328	Bridge Bancorp, Inc.		223,064
	69,298	Brookline Bancorp, Inc.		788,611
	10,580	Bryn Mawr Bank Corp.		300,684
	58,424	Calamos Asset Management, Inc., Class A		481,414
	8,208	Camden National Corp.		357,130
	6,612	Capital Bank Financial Corp., Class A		199,881
	164,276	Capstead Mortgage Corp. REIT		1,596,763
	19,435	Cardinal Financial Corp.		430,097
	27,145	CareTrust REIT, Inc. REIT		345,284
	25,701	Cash America International, Inc.		949,909
	22,838	CatchMark Timber Trust, Inc., Class A REIT		242,311
	44,824	Cathay General Bancorp		1,368,028
	22,839	CBOE Holdings, Inc.		1,415,104
	78,483	Cedar Realty Trust, Inc. REIT		543,102
	20,642	Centerstate Banks, Inc.		336,258
	19,017	Central Pacific Financial Corp.		443,857
	13,762	Charter Financial Corp.		172,438
	22,419	Chatham Lodging Trust REIT		477,749
	26,096	Chemical Financial Corp.(c)		1,003,652
	9,667	Cherry Hill Mortgage Investment Corp. REIT		137,368
	39,079	Chesapeake Lodging Trust REIT		962,516
	13,151	City Holding Co.		645,977
	16,956	Clifton Bancorp, Inc.		252,305
	46,985	CNA Financial Corp.		1,484,726
	20,853	CoBiz Financial, Inc.		252,530
	13,109	Cohen & Steers, Inc.		514,790
	91,828	Colony Capital, Inc., Class A REIT		1,623,519
	12,375	Colony Starwood Homes REIT		301,579
	40,485	Columbia Banking System, Inc.		1,193,903
	30,437	Community Bank System, Inc.		1,204,392
	14,433	Community Trust Bancorp, Inc.		517,712
	17,515	ConnectOne Bancorp, Inc.		301,433
	51,782	Consumer Portfolio Services, Inc.(b)		204,539
	16,067	CorEnergy Infrastructure Trust, Inc. REIT(c)		342,066
	7,458	CoreSite Realty Corp. REIT		558,828
	146,232	Cousins Properties, Inc. REIT		1,513,501
	146,023	Cowen Group, Inc., Class A(b)		508,890
	2,980	Credit Acceptance Corp.(b)(c)		584,885
	50,124	CubeSmart REIT		1,484,172
	17,750	Customers Bancorp, Inc.(b)		461,145
	62,666	CVB Financial Corp.		1,076,602
	16,001	CyrusOne, Inc. REIT		706,124
	226,355	CYS Investments, Inc. REIT		1,835,739
	1,755	Diamond Hill Investment Group, Inc.		307,581
	29,485	Dime Community Bancshares, Inc.		533,973
	36,724	DuPont Fabros Technology, Inc. REIT		1,462,350
	104,097	Dynex Capital, Inc. REIT		676,630
	10,498	Eagle Bancorp, Inc.(b)		532,249
	21,186	EastGroup Properties, Inc. REIT		1,265,863
	24,298	Education Realty Trust, Inc. REIT		966,331
	14,057	eHealth, Inc.(b)		157,298
	43,093	Empire State Realty Trust, Inc., Class A REIT		797,651

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	25,934	Employers Holdings, Inc.	$	770,240
	43,857	Encore Capital Group, Inc.(b)(c)		1,234,575
	83,085	Enova International, Inc.(b)		731,979
	9,100	Enstar Group Ltd. (Bermuda)(b)		1,441,804
	11,048	Enterprise Financial Services Corp.		302,384
	48,076	Equity One, Inc. REIT		1,360,551
	20,395	Essent Group Ltd.(b)		416,466
	96,057	EverBank Financial Corp.		1,448,540
	19,468	Evercore Partners, Inc., Class A		1,005,328
	395,569	EZCORP, Inc., Class A(b)		1,958,067
	9,777	FactSet Research Systems, Inc.		1,473,883
	10,727	FBL Financial Group, Inc., Class A		648,662
	11,337	FBR & Co.		209,734
	4,703	FCB Financial Holdings, Inc., Class A(b)		164,370
	9,333	Federal Agricultural Mortgage Corp., Class C		379,666
	5,731	Federated National Holding Co.		109,176
	72,836	FelCor Lodging Trust, Inc. REIT		521,506
	14,910	Fidelity & Guaranty Life(c)		394,220
	14,154	Fidelity Southern Corp.		228,729
	12,371	Financial Engines, Inc.(c)		398,470
	9,483	Financial Institutions, Inc.		265,524
	406,343	First BanCorp(b)		1,584,738
	17,935	First Bancorp/Southern Pines NC		365,874
	5,696	First Business Financial Services, Inc.		144,166
	19,588	First Cash Financial Services, Inc.(b)		895,759
	5,374	First Citizens BancShares, Inc., Class A		1,370,370
	77,752	First Commonwealth Financial Corp.		713,763
	18,030	First Community Bancshares, Inc.		375,204
	6,785	First Defiance Financial Corp.		268,550
	72,843	First Financial Bancorp		1,420,438
	30,159	First Financial Bankshares, Inc.(c)		976,548
	10,520	First Financial Corp.		372,724
	50,699	First Industrial Realty Trust, Inc. REIT		1,163,035
	18,436	First Interstate BancSystem, Inc., Class A		499,616
	22,317	First Merchants Corp.		572,431
	55,463	First Midwest Bancorp, Inc.		1,024,956
	12,609	First NBC Bank Holding Co.(b)		274,120
	7,348	First of Long Island Corp. (The)		224,922
	98,214	First Potomac Realty Trust REIT		825,980
	30,997	Five Oaks Investment Corp. REIT		187,532
	22,778	Flagstar Bancorp, Inc.(b)		539,155
	27,218	Flushing Financial Corp.		542,999
	163,309	FNFV Group(b)		1,758,838
	57,675	Forestar Group, Inc.(b)		778,612
	6,691	Fox Chase Bancorp, Inc.		131,880
	117,877	Franklin Street Properties Corp. REIT		1,251,854
	36,043	FXCM, Inc., Class A(b)(c)		420,261
	39,228	Gain Capital Holdings, Inc.		268,712
	58,797	Gaming and Leisure Properties, Inc. REIT		1,927,954
	24,780	Getty Realty Corp. REIT		487,670
	57,545	Glacier Bancorp, Inc.		1,489,840
	23,696	Gladstone Commercial Corp. REIT		398,804
	9,831	Global Indemnity PLC, Class A(b)		309,185
	106,439	Government Properties Income Trust REIT(c)		2,013,826
	202,627	Gramercy Property Trust REIT		1,716,251
	8,785	Great Southern Bancorp, Inc.		332,600

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, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	61,340	Great Western Bancorp, Inc.	$	1,933,437
	20,748	Green Bancorp, Inc.(b)		169,304
	33,421	Green Dot Corp., Class A(b)		742,949
	37,881	Greenhill & Co., Inc.		834,140
	47,067	Greenlight Capital Re Ltd., Class A(b)		1,013,352
	18,566	Hanmi Financial Corp.		429,246
	11,068	Hannon Armstrong Sustainable Infrastructure Capital, Inc. REIT		214,719
	9,036	HCI Group, Inc.		270,719
	14,592	Heartland Financial USA, Inc.		488,978
	21,147	Heritage Financial Corp.		390,162
	16,611	Heritage Insurance Holdings, Inc.		220,760
	43,780	Hersha Hospitality Trust REIT		844,516
	16,327	HFF, Inc., Class A		519,688
	54,281	Hilltop Holdings, Inc.(b)		1,078,021
	18,591	Home BancShares, Inc.		799,227
	14,862	HomeStreet, Inc.(b)		320,276
	17,272	HomeTrust Bancshares, Inc.(b)		320,396
	47,255	Horace Mann Educators Corp.		1,469,630
	7,686	Horizon Bancorp		187,538
	8,458	Houlihan Lokey, Inc., Class A		213,226
	16,127	Howard Hughes Corp. (The)(b)		1,696,077
	28,735	Hudson Pacific Properties, Inc. REIT		840,499
	33,834	IBERIABANK Corp.		1,995,868
	14,254	Independent Bank Corp.		215,948
	15,187	Independent Bank Corp./MA		714,245
	7,373	Independent Bank Group, Inc.		269,852
	12,274	Infinity Property & Casualty Corp.		983,884
	7,946	InfraREIT, Inc. REIT		131,745
	9,561	Interactive Brokers Group, Inc., Class A		363,318
	59,647	International Bancshares Corp.		1,562,155
	13,960	INTL FCStone, Inc.(b)		381,108
	25,543	Investment Technology Group, Inc.		498,599
	174,601	Investors Real Estate Trust REIT(c)		1,051,098
	81,641	iStar, Inc. REIT(b)		800,082
	18,437	James River Group Holdings Ltd.		570,810
	120,122	JG Wentworth Co. (The), Class A(b)(c)		138,140
	78,542	KCG Holdings, Inc., Class A(b)		1,076,025
	29,461	Kennedy-Wilson Holdings, Inc.		636,652
	46,638	Kite Realty Group Trust REIT		1,269,953
	9,892	Lakeland Financial Corp.		467,793
	29,142	LegacyTexas Financial Group, Inc.		718,642
	16,288	LTC Properties, Inc. REIT		755,600
	78,355	Maiden Holdings Ltd.		958,282
	15,241	MainSource Financial Group, Inc.		333,016
	5,784	Marcus & Millichap, Inc.(b)		145,063
	5,242	MarketAxess Holdings, Inc.		643,508
	51,521	Markit Ltd.(b)		1,797,568
	11,086	Marlin Business Services Corp.		163,962
	42,321	MB Financial, Inc.		1,471,078
	137,211	Medical Properties Trust, Inc. REIT		1,826,278
	12,890	Mercantile Bank Corp.		310,907
	32,594	Meridian Bancorp, Inc.		476,524
	4,193	Meta Financial Group, Inc.		208,057
	167,156	MGIC Investment Corp.(b)		1,208,538
	16,960	MidSouth Bancorp, Inc.		153,488

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	33,026	Monmouth Real Estate Investment Corp. REIT	$	379,799
	131,419	Monogram Residential Trust, Inc. REIT		1,331,274
	6,009	Morningstar, Inc.		499,949
	29,455	Nam Tai Property, Inc. (China)		179,675
	26,516	National Bank Holdings Corp., Class A		530,055
	14,778	National Health Investors, Inc. REIT		1,006,234
	8,798	National Interstate Corp.		270,890
	15,317	National Storage Affiliates Trust REIT		298,988
	3,398	National Western Life Group, Inc., Class A		736,347
	65,001	Nationstar Mortgage Holdings, Inc.(b)(c)		753,362
	10,952	Navigators Group, Inc. (The)(b)		904,745
	39,843	NBT Bancorp, Inc.		1,129,151
	21,489	Nelnet, Inc., Class A		900,604
	76,504	New Senior Investment Group, Inc. REIT		826,243
	201,081	New York Mortgage Trust, Inc. REIT(c)		1,045,621
	73,723	New York REIT, Inc. REIT		724,697
	159,186	Newcastle Investment Corp. REIT		690,867
	51,420	NMI Holdings, Inc., Class A(b)		323,432
	32,244	Northfield Bancorp, Inc.		511,390
	7,377	Northrim Bancorp, Inc.		190,327
	15,907	NorthStar Asset Management Group, Inc.		197,883
	126,633	Northwest Bancshares, Inc.		1,775,395
	9,489	OceanFirst Financial Corp.		184,846
	274,848	Ocwen Financial Corp.(b)		621,156
	116,565	OFG Bancorp		1,029,269
	126,874	Old National Bancorp		1,700,112
	12,730	One Liberty Properties, Inc. REIT		298,137
	50,135	OneBeacon Insurance Group Ltd., Class A		621,674
	65,905	OneMain Holdings, Inc.(b)(c)		2,097,097
	25,760	Oppenheimer Holdings, Inc., Class A		393,613
	9,940	Opus Bank		359,033
	13,166	Orchid Island Capital, Inc. REIT(c)		127,447
	39,497	Oritani Financial Corp.		684,483
	13,520	Pacific Continental Corp.		225,243
	9,671	Pacific Premier Bancorp, Inc.(b)		224,947
	12,442	Park National Corp.		1,142,176
	67,111	Parkway Properties, Inc. REIT		1,103,976
	12,302	Peapack-Gladstone Financial Corp.		235,460
	45,985	Pebblebrook Hotel Trust REIT		1,271,025
	64,913	Pennsylvania Real Estate Investment Trust REIT		1,489,104
	16,961	Peoples Bancorp, Inc.		364,492
	30,365	Phoenix Cos., Inc. (The)(b)		1,123,809
	15,982	Physicians Realty Trust REIT		289,754
	41,667	PICO Holdings, Inc.(b)		413,753
	12,094	Pinnacle Financial Partners, Inc.		594,662
	21,138	Piper Jaffray Cos.(b)		881,666
	10,846	Pjt Partners, Inc., Class A(c)		242,083
	28,737	Post Properties, Inc. REIT		1,648,354
	41,415	Potlatch Corp. REIT		1,458,636
	46,889	PRA Group, Inc.(b)		1,555,777
	16,976	Preferred Apartment Communities, Inc., Class A REIT		209,484
	7,328	Preferred Bank		232,737
	39,382	Primerica, Inc.		1,951,772

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, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	38,338	PrivateBancorp, Inc.	$	1,595,244
	60,560	Provident Financial Services, Inc.		1,209,989
	10,854	PS Business Parks, Inc. REIT		1,039,379
	11,903	QTS Realty Trust, Inc., Class A REIT		576,343
	115,679	Radian Group, Inc.		1,479,534
	289,015	RAIT Financial Trust REIT		878,606
	52,299	Ramco-Gershenson Properties Trust REIT		926,215
	5,933	RE/MAX Holdings, Inc., Class A		218,334
	144,939	Redwood Trust, Inc. REIT(c)		1,878,409
	22,707	Regional Management Corp.(b)		375,120
	21,840	Renasant Corp.		749,986
	10,299	Republic Bancorp, Inc., Class A		281,266
	31,553	Resource America, Inc., Class A		199,415
	81,183	Resource Capital Corp. REIT(c)		964,454
	42,131	Retail Opportunity Investments Corp. REIT		828,717
	22,729	Rexford Industrial Realty, Inc. REIT		426,623
	6,127	RMR Group, Inc. (The), Class A		152,685
	25,568	Rouse Properties, Inc. REIT		472,241
	23,168	S&T Bancorp, Inc.		594,723
	73,071	Sabra Health Care REIT, Inc. REIT		1,541,067
	13,556	Safeguard Scientifics, Inc.(b)		187,073
	18,303	Safety Insurance Group, Inc.		1,036,133
	20,034	Sandy Spring Bancorp, Inc.		572,772
	8,072	Saul Centers, Inc. REIT		429,269
	12,560	Seacoast Banking Corp. of Florida(b)		203,723
	43,097	SEI Investments Co.		2,072,104
	50,550	Select Income REIT		1,170,232
	50,047	Selective Insurance Group, Inc.		1,737,131
	6,901	Seritage Growth Properties, Class A REIT(c)		368,306
	21,466	Silver Bay Realty Trust Corp. REIT		313,404
	10,287	Simmons First National Corp., Class A		480,403
	13,323	South State Corp.		932,344
	22,015	Southside Bancshares, Inc.		643,058
	14,181	Southwest Bancorp, Inc.		227,605
	12,158	Sovran Self Storage, Inc. REIT		1,291,423
	36,133	St. Joe Co. (The)(b)		608,841
	45,646	STAG Industrial, Inc., Class A REIT		911,094
	17,297	State Auto Financial Corp.		354,761
	19,154	State Bank Financial Corp.		399,936
	43,946	Sterling Bancorp		718,078
	28,427	Stewart Information Services Corp.		989,828
	8,011	Stock Yards Bancorp, Inc.		323,965
	4,747	Stonegate Bank		149,530
	20,256	STORE Capital Corp. REIT		519,972
	59,503	Summit Hotel Properties, Inc. REIT		678,334
	23,906	Sun Communities, Inc. REIT		1,622,500
	34,311	Talmer Bancorp, Inc., Class A		665,633
	46,911	Tanger Factory Outlet Centers, Inc. REIT		1,645,638
	10,320	Tejon Ranch Co.(b)		232,406
	20,398	Terreno Realty Corp. REIT		464,462
	8,263	Territorial Bancorp, Inc.		216,738
	42,140	Texas Capital Bancshares, Inc.(b)		1,930,855
	26,346	TFS Financial Corp.		471,593
	56,461	Third Point Reinsurance Ltd. (Bermuda)(b)		642,526
	65,175	Tier REIT, Inc. REIT		982,839
	9,932	Tompkins Financial Corp.		648,957

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	28,162	TowneBank	$	591,402
	16,420	TriCo Bancshares		442,026
	17,802	TriState Capital Holdings, Inc.(b)		237,835
	13,112	Triumph Bancorp, Inc.(b)		208,350
	103,470	TrustCo Bank Corp. NY		663,243
	75,155	Trustmark Corp.		1,842,049
	31,295	UMB Financial Corp.		1,744,696
	22,899	UMH Properties, Inc. REIT		224,410
	35,512	Union Bankshares Corp.		937,872
	45,342	United Bankshares, Inc.(c)		1,754,282
	21,114	United Community Banks, Inc.		425,025
	39,799	United Financial Bancorp, Inc.		516,591
	17,782	United Fire Group, Inc.		796,989
	8,703	United Insurance Holdings Corp.		141,946
	5,725	Universal Health Realty Income Trust REIT		312,585
	17,084	Universal Insurance Holdings, Inc.(c)		300,849
	20,355	Univest Corp. of Pennsylvania		401,808
	24,108	Urban Edge Properties REIT		625,362
	20,237	Urstadt Biddle Properties, Inc., Class A REIT		416,073
	7,246	Virtu Financial, Inc., Class A		151,079
	4,195	Virtus Investment Partners, Inc.(c)		328,133
	19,868	Walker & Dunlop, Inc.(b)		438,089
	211,823	Walter Investment Management Corp.(b)(c)		1,535,717
	60,241	Washington REIT		1,727,109
	11,153	Washington Trust Bancorp, Inc.		408,534
	22,182	Waterstone Financial, Inc.		310,992
	26,984	WesBanco, Inc.		866,996
	19,725	Westamerica Bancorp.(c)		961,002
	29,996	Western Alliance Bancorp(b)		1,097,254
	108,428	Western Asset Mortgage Capital Corp. REIT(c)		1,081,027
	5,364	Westwood Holdings Group, Inc.		308,698
	29,276	Whitestone REIT		393,177
	41,623	Wilshire Bancorp, Inc.		448,280
	39,043	Winthrop Realty Trust REIT		496,627
	41,151	Wintrust Financial Corp.		2,140,675
	26,268	World Acceptance Corp.(b)(c)		1,139,769
	15,508	WSFS Financial Corp.		529,443
	11,524	ZAIS Financial Corp. REIT		167,674
				267,172,940
		Health Care—7.0%
	7,123	Abaxis, Inc.		322,814
	2,914	ABIOMED, Inc.(b)		283,066
	12,859	Acadia Healthcare Co., Inc.(b)		812,560
	7,831	ACADIA Pharmaceuticals, Inc.(b)		252,941
	30,164	Accuray, Inc.(b)(c)		161,679
	16,757	Aceto Corp.		375,860
	14,813	Acorda Therapeutics, Inc.(b)		382,916
	8,970	Adamas Pharmaceuticals, Inc.(b)(c)		151,414
	3,169	Agios Pharmaceuticals, Inc.(b)(c)		155,123
	21,650	Air Methods Corp.(b)		800,617
	15,257	Akorn, Inc.(b)		388,291
	10,309	Albany Molecular Research, Inc.(b)(c)		155,150
	11,718	Align Technology, Inc.(b)		845,922
	28,384	Alkermes PLC(b)		1,128,264
	132,300	Allscripts Healthcare Solutions, Inc.(b)		1,772,820
	7,020	Almost Family, Inc.(b)		294,910

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, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Health Care (continued)
	8,090	Alnylam Pharmaceuticals, Inc.(b)	$	542,354
	12,224	AMAG Pharmaceuticals, Inc.(b)		324,180
	21,421	Amedisys, Inc.(b)		1,102,967
	20,630	AMN Healthcare Services, Inc.(b)		732,571
	16,995	Amphastar Pharmaceuticals, Inc.(b)		209,038
	7,067	Analogic Corp.		558,222
	35,972	AngioDynamics, Inc.(b)		440,657
	4,880	Anika Therapeutics, Inc.(b)		222,821
	4,653	athenahealth, Inc.(b)(c)		620,245
	635	Atrion Corp.		252,286
	14,242	BioMarin Pharmaceutical, Inc.(b)		1,206,013
	216,248	BioScrip, Inc.(b)(c)		570,895
	12,128	Bio-Techne Corp.		1,130,087
	5,469	Bluebird Bio, Inc.(b)		242,550
	41,979	Bruker Corp.		1,188,006
	10,407	Cambrex Corp.(b)		502,034
	4,857	Cantel Medical Corp.		325,370
	19,215	Capital Senior Living Corp.(b)		385,453
	42,216	Catalent, Inc.(b)		1,246,638
	22,965	Celldex Therapeutics, Inc.(b)(c)		91,860
	12,172	Cepheid, Inc.(b)		347,389
	17,567	Charles River Laboratories International, Inc.(b)		1,392,536
	7,093	Chemed Corp.		920,530
	31,645	Chimerix, Inc.(b)		189,237
	2,193	China Biologic Products, Inc. (China)(b)		256,581
	20,022	Civitas Solutions, Inc.(b)		401,241
	8,776	Clovis Oncology, Inc.(b)(c)		122,074
	7,037	Computer Programs & Systems, Inc.(c)		361,209
	20,054	CONMED Corp.		830,637
	5,755	CorVel Corp.(b)		260,126
	20,486	Cross Country Healthcare, Inc.(b)		254,641
	14,487	CryoLife, Inc.		179,639
	8,087	Cynosure, Inc., Class A(b)		395,778
	25,036	Depomed, Inc.(b)		435,126
	10,817	Diplomat Pharmacy, Inc.(b)(c)		327,647
	9,308	Emergent BioSolutions, Inc.(b)		358,544
	20,786	Ensign Group, Inc. (The)		468,932
	26,804	Exact Sciences Corp.(b)		188,164
	9,995	Exactech, Inc.(b)		227,286
	20,800	ExamWorks Group, Inc.(b)		749,840
	6,863	FibroGen, Inc.(b)		123,534
	104,506	Five Star Quality Care, Inc.(b)		254,995
	24,287	Globus Medical, Inc., Class A(b)		608,146
	22,669	Greatbatch, Inc.(b)		788,881
	36,873	Haemonetics Corp.(b)		1,195,791
	47,094	Harvard Bioscience, Inc.(b)		139,869
	7,172	HealthStream, Inc.(b)		162,231
	44,899	Healthways, Inc.(b)		523,073
	4,907	HeartWare International, Inc.(b)		163,698
	35,251	Hill-Rom Holdings, Inc.		1,704,386
	63,992	HMS Holdings Corp.(b)		1,080,825
	18,780	Horizon Pharma PLC(b)		288,649
	20,217	ICON PLC(b)		1,366,265
	5,937	ICU Medical, Inc.(b)		589,782
	18,487	IDEXX Laboratories, Inc.(b)		1,559,378

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Health Care (continued)
	36,211	Impax Laboratories, Inc.(b)	$	1,207,637
	11,013	INC Research Holdings, Inc., Class A(b)		530,056
	23,745	Infinity Pharmaceuticals, Inc.(b)		137,721
	4,622	Insulet Corp.(b)		153,913
	12,592	Integra LifeSciences Holdings Corp.(b)		891,765
	58,332	Invacare Corp.		655,652
	5,926	Ionis Pharmaceuticals, Inc.(b)		242,788
	12,102	Jazz Pharmaceuticals PLC(b)		1,823,771
	4,848	Juno Therapeutics, Inc.(b)(c)		204,052
	9,798	K2M Group Holdings, Inc.(b)		159,315
	3,625	Kite Pharma, Inc.(b)(c)		167,765
	10,242	Landauer, Inc.		355,807
	8,254	Lannett Co., Inc.(b)(c)		158,312
	9,929	LHC Group, Inc.(b)		400,536
	6,478	LivaNova PLC(b)		341,585
	17,255	Luminex Corp.(b)		346,826
	21,257	Masimo Corp.(b)		921,491
	26,572	Medicines Co. (The)(b)(c)		945,697
	7,704	Medidata Solutions, Inc.(b)		336,126
	13,436	Medivation, Inc.(b)		776,601
	27,862	Meridian Bioscience, Inc.		532,443
	31,332	Merit Medical Systems, Inc.(b)		634,473
	14,421	Momenta Pharmaceuticals, Inc.(b)		137,144
	28,265	Myriad Genetics, Inc.(b)		1,017,540
	11,164	Natus Medical, Inc.(b)		355,797
	8,104	Neogen Corp.(b)		382,833
	3,652	Neurocrine Biosciences, Inc.(b)		166,458
	27,652	Novavax, Inc.(b)(c)		144,896
	19,700	NuVasive, Inc.(b)		1,042,918
	7,122	Nuvectra Corp.(b)		59,860
	16,523	NxStage Medical, Inc.(b)		266,351
	17,199	Omnicell, Inc.(b)		547,960
	35,082	OPKO Health, Inc.(b)(c)		377,132
	23,648	OraSure Technologies, Inc.(b)		169,793
	11,992	Orthofix International NV(b)		524,770
	1,959	Pacira Pharmaceuticals, Inc.(b)		106,001
	25,595	PAREXEL International Corp.(b)		1,563,855
	40,795	PharMerica Corp.(b)		964,394
	4,687	Phibro Animal Health Corp., Class A		97,208
	6,607	Portola Pharmaceuticals, Inc.(b)		156,982
	27,098	PRA Health Sciences, Inc.(b)		1,285,800
	15,054	Premier, Inc., Class A(b)		508,976
	6,186	Press Ganey Holdings, Inc.(b)		188,487
	20,249	Prestige Brands Holdings, Inc.(b)		1,149,738
	4,738	Prothena Corp. PLC (Ireland)(b)		204,634
	15,217	Providence Service Corp. (The)(b)		758,415
	6,541	PTC Therapeutics, Inc.(b)(c)		48,534
	42,350	Quality Systems, Inc.		596,288
	14,430	Quidel Corp.(b)		249,639
	70,121	RadNet, Inc.(b)		354,111
	54,953	RTI Surgical, Inc.(b)		219,262
	11,232	Sagent Pharmaceuticals, Inc.(b)		130,740
	22,961	Sangamo BioSciences, Inc.(b)		144,654
	9,775	Sarepta Therapeutics, Inc.(b)(c)		138,707
	16,634	SciClone Pharmaceuticals, Inc.(b)		219,569
	4,906	Seattle Genetics, Inc.(b)		174,065

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, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Health Care (continued)
	12,825	Spectranetics Corp. (The)(b)(c)	$	218,025
	49,481	Spectrum Pharmaceuticals, Inc.(b)(c)		350,820
	20,836	Surgery Partners, Inc.(b)(c)		339,418
	15,842	Surgical Care Affiliates, Inc.(b)		765,961
	26,959	Syneron Medical Ltd. (Israel)(b)		192,218
	4,657	Taro Pharmaceutical Industries Ltd.(b)		650,769
	43,602	Team Health Holdings, Inc.(b)		1,823,872
	57,964	Triple-S Management Corp., Class B(b)		1,509,383
	5,400	U.S. Physical Therapy, Inc.		269,244
	81,454	Universal American Corp.		606,018
	6,464	Vascular Solutions, Inc.(b)		225,917
	10,184	Veeva Systems, Inc., Class A(b)		280,162
	11,533	Vertex Pharmaceuticals, Inc.(b)		972,693
	64,376	VWR Corp.(b)		1,714,977
	25,085	West Pharmaceutical Services, Inc.		1,786,052
	22,864	Wright Medical Group NV(b)		429,386
				77,908,012
		Industrials—16.4%
	23,657	A.O. Smith Corp.		1,826,794
	12,320	AAON, Inc.		326,726
	64,537	AAR Corp.		1,551,469
	169,439	ACCO Brands Corp.(b)		1,616,448
	156,596	Accuride Corp.(b)		253,686
	54,320	Actuant Corp., Class A		1,450,887
	29,146	Advanced Drainage Systems, Inc.(c)		673,856
	12,840	Advisory Board Co. (The)(b)		406,258
	56,380	Aegion Corp.(b)		1,196,947
	32,426	Aerojet Rocketdyne Holdings, Inc.(b)		587,559
	9,993	Aerovironment, Inc.(b)		288,598
	73,252	Air Transport Services Group, Inc.(b)		1,032,121
	89,224	Aircastle Ltd.		1,936,161
	9,068	Alamo Group, Inc.		511,798
	14,514	Alaska Air Group, Inc.		1,022,221
	15,971	Albany International Corp., Class A		643,472
	477	Allegiant Travel Co.		76,592
	28,017	Allegion PLC		1,833,713
	21,733	Altra Industrial Motion Corp.		623,737
	4,618	AMERCO		1,625,536
	8,087	American Railcar Industries, Inc.(c)		331,648
	13,535	American Science & Engineering, Inc.		387,778
	3,464	American Woodmark Corp.(b)		252,318
	13,052	Apogee Enterprises, Inc.		540,875
	36,085	Applied Industrial Technologies, Inc.		1,653,776
	60,276	ARC Document Solutions, Inc.(b)		248,337
	45,912	ArcBest Corp.		876,460
	6,481	Argan, Inc.		221,521
	15,356	Astec Industries, Inc.		743,230
	9,494	Astronics Corp.(b)		350,803
	28,340	Atento SA (Spain)(b)		242,307
	4,273	Atlas Air Worldwide Holdings, Inc.(b)		170,664
	14,597	AZZ, Inc.		801,667
	40,839	B/E Aerospace, Inc.		1,986,001
	67,537	Babcock & Wilcox Enterprises, Inc.(b)		1,543,220
	35,599	Barnes Group, Inc.		1,156,611
	5,306	Barrett Business Services, Inc.		164,539
	47,545	Beacon Roofing Supply, Inc.(b)		2,031,598

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrials (continued)
	18,203	BMC Stock Holdings, Inc.(b)	$	319,463
	43,944	Brady Corp., Class A		1,164,077
	55,716	Briggs & Stratton Corp.		1,179,508
	42,940	Builders FirstSource, Inc.(b)		476,205
	51,235	BWX Technologies, Inc.		1,710,737
	8,637	Caesarstone Sdot-Yam Ltd. (Israel)(b)		319,828
	59,970	CAI International, Inc.(b)		612,893
	62,992	Casella Waste Systems, Inc., Class A(b)		451,023
	54,953	CBIZ, Inc.(b)		559,422
	74,235	CDI Corp.		530,780
	14,137	CEB, Inc.		872,112
	28,598	CECO Environmental Corp.		188,747
	50,868	Celadon Group, Inc.		512,241
	71,428	Chart Industries, Inc.(b)		1,838,557
	15,818	CIRCOR International, Inc.		892,926
	622,261	Civeo Corp.(b)		945,837
	29,163	CLARCOR, Inc.		1,713,910
	29,605	Columbus McKinnon Corp.		488,779
	24,572	Comfort Systems USA, Inc.		724,628
	130,773	Commercial Vehicle Group, Inc.(b)		336,087
	23,464	Continental Building Products, Inc.(b)		460,129
	3,097	Copa Holdings SA, Class A (Panama)(c)		197,434
	39,990	Copart, Inc.(b)		1,713,172
	64,780	Costamare, Inc. (Greece)(c)		628,366
	17,054	Covenant Transportation Group, Inc., Class A(b)		339,545
	14,854	CRA International, Inc.(b)		322,332
	22,452	Cubic Corp.		933,330
	293,928	Diana Shipping, Inc. (Greece)(b)(c)		1,016,991
	86,501	DigitalGlobe, Inc.(b)		1,916,862
	18,553	Douglas Dynamics, Inc.		425,049
	25,243	Ducommun, Inc.(b)		401,616
	33,977	DXP Enterprises, Inc.(b)		742,397
	19,068	Dycom Industries, Inc.(b)		1,346,201
	28,140	Dynamic Materials Corp.		274,928
	19,086	Echo Global Logistics, Inc.(b)		446,040
	19,970	Encore Wire Corp.		763,852
	29,891	Engility Holdings, Inc.(b)		587,956
	29,257	Ennis, Inc.		571,682
	26,087	EnPro Industries, Inc.		1,528,176
	19,089	ESCO Technologies, Inc.		734,545
	7,317	Exponent, Inc.		364,679
	34,282	Federal Signal Corp.		469,321
	17,107	Forward Air Corp.		779,737
	8,652	Franklin Covey Co.(b)		142,498
	26,385	Franklin Electric Co., Inc.		833,502
	12,668	FreightCar America, Inc.		217,256
	18,889	G&K Services, Inc., Class A		1,334,508
	22,704	Gibraltar Industries, Inc.(b)		600,521
	30,158	Global Brass & Copper Holdings, Inc.		817,282
	412,644	Golden Ocean Group Ltd. (Norway)(b)(c)		357,762
	11,610	GP Strategies Corp.(b)		270,977
	21,402	Graco, Inc.		1,677,703
	7,517	Graham Corp.		139,140
	25,954	Granite Construction, Inc.		1,157,289
	115,652	Great Lakes Dredge & Dock Corp.(b)		528,530

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, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrials (continued)
	50,399	Greenbrier Cos., Inc. (The)(c)	$	1,511,466
	52,658	Griffon Corp.		832,523
	78,437	H&E Equipment Services, Inc.		1,586,781
	2,228	Hawaiian Holdings, Inc.(b)		93,732
	28,804	Healthcare Services Group, Inc.		1,090,231
	36,603	Heartland Express, Inc.		662,880
	7,328	HEICO Corp.		449,280
	16,232	Heidrick & Struggles International, Inc.		320,257
	46,024	Herman Miller, Inc.		1,388,544
	82,682	Hill International, Inc.(b)		350,572
	55,104	Hillenbrand, Inc.		1,670,202
	42,017	HNI Corp.		1,836,983
	40,137	Houston Wire & Cable Co.		293,401
	4,823	Hurco Cos., Inc.		156,169
	17,822	Huron Consulting Group, Inc.(b)		991,081
	12,223	Hyster-Yale Materials Handling, Inc., Class A		748,659
	25,252	ICF International, Inc.(b)		994,171
	64,127	InnerWorkings, Inc.(b)		523,918
	16,271	Insperity, Inc.		858,621
	9,691	Insteel Industries, Inc.		280,942
	39,692	Interface, Inc.		675,558
	41,618	JetBlue Airways Corp.(b)		823,620
	12,391	John Bean Technologies Corp.		646,067
	8,282	Kadant, Inc.		392,153
	25,314	Kaman Corp.		1,065,466
	56,378	Kelly Services, Inc., Class A		1,058,215
	59,272	KEYW Holding Corp. (The)(b)(c)		408,384
	25,935	Kforce, Inc.		493,024
	45,649	Kimball International, Inc., Class B		531,354
	35,197	Knight Transportation, Inc.		935,184
	33,408	Knoll, Inc.		780,077
	24,827	Korn/Ferry International		673,805
	154,551	Kratos Defense & Security Solutions, Inc.(b)		820,666
	28,420	Landstar System, Inc.		1,862,931
	88,234	Layne Christensen Co.(b)(c)		784,400
	28,871	LB Foster Co., Class A		568,181
	13,231	Lennox International, Inc.		1,785,523
	6,438	Lindsay Corp.(c)		492,249
	20,000	LSI Industries, Inc.		253,000
	13,344	Lydall, Inc.(b)		490,926
	28,239	Manitex International, Inc.(b)(c)		187,507
	24,467	Marten Transport Ltd.		456,554
	21,706	Masonite International Corp.(b)		1,468,628
	6,172	Matson, Inc.		239,967
	17,509	Matthews International Corp., Class A		921,674
	25,788	McGrath RentCorp		628,711
	19,660	Mercury Systems, Inc.(b)		413,253
	15,640	Middleby Corp. (The)(b)		1,714,770
	12,876	Milacron Holdings Corp.(b)		220,566
	14,746	Miller Industries, Inc.		313,500
	15,319	Mistras Group, Inc.(b)		373,324
	28,666	Mobile Mini, Inc.		924,478
	25,887	MSA Safety, Inc.		1,244,906
	46,416	Mueller Industries, Inc.		1,464,889
	88,183	Mueller Water Products, Inc., Class A		947,967
	10,152	Multi-Color Corp.		607,394

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrials (continued)
	33,367	MYR Group, Inc.(b)	$	851,192
	8,297	National Presto Industries, Inc.(c)		723,415
	56,128	Navigant Consulting, Inc.(b)		895,803
	506,774	Navios Maritime Holdings, Inc. (Monaco)(c)		592,926
	24,275	NCI Building Systems, Inc.(b)		357,813
	28,589	Neff Corp., Class A(b)		244,436
	22,684	NN, Inc.		341,167
	25,515	Nordson Corp.		1,957,766
	21,344	Nortek, Inc.(b)		1,006,583
	41,556	Northwest Pipe Co.(b)		448,389
	27,976	On Assignment, Inc.(b)		1,008,815
	92,939	Orion Marine Group, Inc.(b)		542,764
	12,857	Park-Ohio Holdings Corp.		327,211
	7,518	Patrick Industries, Inc.(b)		344,700
	16,885	PGT, Inc.(b)		176,786
	19,611	Ply Gem Holdings, Inc.(b)		287,301
	13,860	Powell Industries, Inc.		431,323
	15,197	PowerSecure International, Inc.(b)		284,488
	28,279	Primoris Services Corp.		661,446
	4,549	Proto Labs, Inc.(b)(c)		272,167
	162,750	Quad Graphics, Inc., Class A		2,042,512
	33,063	Quanex Building Products Corp.		622,907
	38,747	Raven Industries, Inc.		623,439
	10,092	RBC Bearings, Inc.(b)		739,744
	34,403	Resources Connection, Inc.		508,132
	66,570	Roadrunner Transportation Systems, Inc.(b)		786,857
	28,987	Rollins, Inc.		778,881
	58,840	RPX Corp.(b)		651,947
	32,986	Saia, Inc.(b)		953,955
	327,199	Scorpio Bulkers, Inc.(b)(c)		1,259,716
	70,252	Seaspan Corp. (Hong Kong)(c)		1,187,961
	20,952	Simpson Manufacturing Co., Inc.		787,795
	36,570	SkyWest, Inc.		859,395
	9,133	SolarCity Corp.(b)		276,913
	13,380	Sparton Corp.(b)		287,135
	2,462	Spirit Airlines, Inc.(b)		108,156
	87,589	SPX Corp.		1,410,183
	6,913	Standex International Corp.		530,158
	108,621	Steelcase, Inc., Class A		1,657,556
	56,668	Sterling Construction Co., Inc.(b)		296,940
	10,716	Sun Hydraulics Corp.		379,132
	10,004	TASER International, Inc.(b)		182,673
	25,659	Team, Inc.(b)		737,183
	11,619	Tennant Co.		620,571
	46,768	Tetra Tech, Inc.		1,374,979
	66,183	Textainer Group Holdings Ltd.(c)		1,021,204
	23,496	Thermon Group Holdings, Inc.(b)		440,315
	235,114	Titan International, Inc.		1,558,806
	95,667	Titan Machinery, Inc.(b)		1,243,671
	18,851	Toro Co. (The)		1,629,669
	40,492	TransUnion(b)		1,212,735
	8,292	Trex Co., Inc.(b)		393,455
	57,803	TriMas Corp.(b)		1,046,234
	30,793	TriNet Group, Inc.(b)		511,780
	46,654	TrueBlue, Inc.(b)		871,963
	117,387	Tutor Perini Corp.(b)		1,857,062

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, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrials (continued)
	21,624	Twin Disc, Inc.	$	286,518
	9,555	UniFirst Corp.		1,035,571
	51,516	Univar, Inc.(b)		896,378
	16,899	Universal Forest Products, Inc.		1,295,308
	11,976	Universal Logistics Holdings, Inc.		170,778
	11,639	US Ecology, Inc.		524,104
	16,808	USA Truck, Inc.(b)		297,838
	56,585	USG Corp.(b)		1,528,361
	32,672	Vectrus, Inc.(b)		704,408
	29,430	Veritiv Corp.(b)		1,207,219
	28,104	Viad Corp.		836,094
	6,660	Virgin America, Inc.(b)(c)		370,895
	4,028	VSE Corp.		249,897
	83,825	Wabash National Corp.(b)		1,194,506
	6,068	WageWorks, Inc.(b)		326,822
	17,155	Watts Water Technologies, Inc., Class A		958,450
	53,091	Werner Enterprises, Inc.		1,345,326
	70,097	Wesco Aircraft Holdings, Inc.(b)		1,011,500
	71,094	West Corp.		1,523,544
	37,216	Woodward, Inc.		2,017,479
	40,599	Xerium Technologies, Inc.(b)		214,769
	46,991	XPO Logistics, Inc.(b)(c)		1,416,309
				180,996,563
		Information Technology—15.6%
	96,751	3D Systems Corp.(b)(c)		1,711,525
	52,590	ACI Worldwide, Inc.(b)		1,051,274
	37,768	Actua Corp.(b)		358,041
	57,022	Acxiom Corp.(b)		1,252,773
	39,174	ADTRAN, Inc.		756,842
	19,108	Advanced Energy Industries, Inc.(b)		618,144
	21,793	Alpha & Omega Semiconductor Ltd.(b)		283,091
	5,721	Ambarella, Inc.(b)(c)		235,133
	22,662	Applied Micro Circuits Corp.(b)		141,411
	4,966	Arista Networks, Inc.(b)(c)		330,835
	5,026	Aspen Technology, Inc.(b)		191,139
	38,196	AVG Technologies NV(b)		756,281
	43,188	Avid Technology, Inc.(b)		240,989
	61,172	AVX Corp.		808,694
	82,820	Axcelis Technologies, Inc.(b)		236,865
	5,515	Badger Meter, Inc.		393,385
	39,440	Bankrate, Inc.(b)		360,482
	42,806	Bazaarvoice, Inc.(b)		143,400
	18,431	Bel Fuse, Inc., Class B		307,060
	27,541	Belden, Inc.		1,738,939
	38,103	Black Box Corp.		557,066
	7,335	Black Knight Financial Services, Inc., Class A(b)		234,573
	10,136	Blackbaud, Inc.		626,101
	19,712	Blackhawk Network Holdings, Inc.(b)		633,347
	89,265	Blucora, Inc.(b)		715,013
	12,857	Bottomline Technologies (de), Inc.(b)		315,768
	6,926	BroadSoft, Inc.(b)		271,257
	67,602	Brooks Automation, Inc.		639,515
	32,891	Cabot Microelectronics Corp.		1,377,804
	10,140	CalAmp Corp.(b)		151,796
	39,768	Calix, Inc.(b)		275,592

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	54,764	Canadian Solar, Inc. (Canada)(b)(c)	$	980,823
	22,025	Cardtronics, Inc.(b)		868,225
	4,087	Cass Information Systems, Inc.		202,184
	5,962	Cavium, Inc.(b)		294,344
	7,987	CEVA, Inc.(b)		184,180
	80,943	Checkpoint Systems, Inc.(b)		819,143
	33,435	ChipMOS TECHNOLOGIES Bermuda Ltd. (Taiwan)		562,377
	119,436	Ciber, Inc.(b)		277,092
	37,760	Ciena Corp.(b)		635,501
	9,242	Cimpress NV (Netherlands)(b)		812,095
	30,535	Cirrus Logic, Inc.(b)		1,102,313
	19,937	Cognex Corp.		708,362
	12,815	Coherent, Inc.(b)		1,196,921
	21,390	Cohu, Inc.		247,268
	14,920	CommVault Systems, Inc.(b)		653,048
	4,861	comScore, Inc.(b)		148,844
	34,534	Comtech Telecommunications Corp.		835,723
	64,292	Convergys Corp.		1,703,738
	38,237	CoreLogic, Inc.(b)		1,356,649
	7,089	CoStar Group, Inc.(b)		1,398,731
	12,678	Cray, Inc.(b)		480,116
	17,480	CSG Systems International, Inc.		775,762
	27,717	CTS Corp.		459,271
	134,146	Cypress Semiconductor Corp.		1,211,338
	67,838	Daktronics, Inc.		590,191
	41,623	Datalink Corp.(b)		334,233
	5,585	Demandware, Inc.(b)		257,357
	33,489	DHI Group, Inc.(b)		238,107
	32,652	Digi International, Inc.(b)		345,132
	41,012	Diodes, Inc.(b)		763,643
	31,163	Dolby Laboratories, Inc., Class A		1,483,670
	18,139	DSP Group, Inc.(b)		172,320
	10,713	DTS, Inc.(b)		233,758
	148,730	EarthLink Holdings Corp.		864,121
	90,206	Eastman Kodak Co.(b)(c)		1,066,235
	11,237	Ebix, Inc.(c)		540,724
	16,680	Electro Rent Corp.		166,967
	32,885	Electro Scientific Industries, Inc.(b)		231,839
	23,330	Electronics for Imaging, Inc.(b)		929,467
	2,837	Ellie Mae, Inc.(b)		237,173
	15,158	Endurance International Group Holdings, Inc.(b)(c)		162,342
	65,392	EnerNOC, Inc.(b)(c)		445,973
	72,308	Entegris, Inc.(b)		960,973
	10,258	Envestnet, Inc.(b)		321,896
	9,454	EPAM Systems, Inc.(b)		689,480
	31,086	EPIQ Systems, Inc.		459,140
	7,179	ePlus, Inc.(b)		577,120
	20,371	Euronet Worldwide, Inc.(b)		1,570,604
	98,332	Everi Holdings, Inc.(b)		165,198
	34,654	EVERTEC, Inc.		466,789
	27,797	Everyday Health, Inc.(b)		161,223
	30,621	Exar Corp.(b)		186,788
	9,626	ExlService Holdings, Inc.(b)		465,802
	77,638	Extreme Networks, Inc.(b)		272,509

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, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	15,899	Fabrinet (Thailand)(b)	$	508,291
	7,032	Fair Isaac Corp.		750,385
	15,208	FARO Technologies, Inc.(b)		441,640
	15,049	FEI Co.		1,339,662
	86,140	Finisar Corp.(b)		1,417,864
	47,278	FireEye, Inc.(b)		820,273
	6,654	Fleetmatics Group PLC(b)		241,208
	32,041	FormFactor, Inc.(b)		246,716
	8,499	Forrester Research, Inc.		285,736
	25,465	Fortinet, Inc.(b)		827,867
	14,829	Gartner, Inc.(b)		1,292,644
	26,982	Global Payments, Inc.		1,947,561
	12,813	Gogo, Inc.(b)(c)		135,690
	18,448	GrubHub, Inc.(b)(c)		483,707
	22,057	GSI Group, Inc.(b)		320,929
	8,956	Guidewire Software, Inc.(b)		510,223
	11,499	Hackett Group, Inc. (The)		171,105
	150,595	Harmonic, Inc.(b)(c)		521,059
	44,044	Higher One Holdings, Inc.(b)		166,927
	21,053	Hollysys Automation Technologies Ltd. (China)(b)(c)		403,586
	46,519	Hutchinson Technology, Inc.(b)		169,794
	41,128	II-VI, Inc.(b)		858,341
	28,566	Infinera Corp.(b)		339,650
	12,751	Infoblox, Inc.(b)		213,324
	7,489	Inphi Corp.(b)		222,199
	63,316	Insight Enterprises, Inc.(b)		1,564,538
	46,991	Integrated Device Technology, Inc.(b)		905,986
	5,920	Interactive Intelligence Group, Inc.(b)		220,046
	19,727	InterDigital, Inc.		1,124,044
	154,337	Internap Corp.(b)		351,888
	101,600	Intersil Corp., Class A		1,187,704
	18,156	InterXion Holding NV (Netherlands)(b)		615,125
	29,688	Intralinks Holdings, Inc.(b)		264,520
	44,812	InvenSense, Inc.(b)(c)		344,156
	7,984	IPG Photonics Corp.(b)		691,973
	35,838	Itron, Inc.(b)		1,473,659
	44,479	Ixia(b)		450,127
	17,518	IXYS Corp.		189,194
	15,190	j2 Global, Inc.		964,869
	18,529	Jack Henry & Associates, Inc.		1,501,405
	103,936	KEMET Corp.(b)		241,132
	29,810	Kimball Electronics, Inc.(b)		326,121
	142,370	Knowles Corp.(b)(c)		1,903,487
	91,104	Kulicke & Soffa Industries, Inc. (Singapore)(b)		976,635
	18,177	KVH Industries, Inc.(b)		177,408
	84,162	Lattice Semiconductor Corp.(b)		468,782
	62,879	Lionbridge Technologies, Inc.(b)		313,766
	85,280	Liquidity Services, Inc.(b)		475,862
	8,314	Littelfuse, Inc.		968,415
	35,687	LivePerson, Inc.(b)		215,906
	3,328	LogMeIn, Inc.(b)		198,682
	19,400	Lumentum Holdings, Inc.(b)		490,820
	4,377	Luxoft Holding, Inc., Class A(b)		253,034
	3,693	M/A-Com Technology Solutions Holdings, Inc.(b)		151,007

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	136,643	Magnachip Semiconductor Corp. (South Korea)(b)(c)	$	705,078
	8,555	Manhattan Associates, Inc.(b)		517,920
	41,988	ManTech International Corp., Class A		1,419,194
	29,990	Marchex, Inc., Class B		127,458
	19,502	MAXIMUS, Inc.		1,031,656
	32,574	Maxwell Technologies, Inc.(b)		209,125
	12,761	Mellanox Technologies Ltd. (Israel)(b)		551,913
	69,526	Mentor Graphics Corp.		1,387,739
	4,117	MercadoLibre, Inc. (Argentina)(c)		514,172
	22,743	Methode Electronics, Inc.		676,149
	43,250	Microsemi Corp.(b)		1,461,418
	2,752	MicroStrategy, Inc., Class A(b)		493,489
	34,672	MKS Instruments, Inc.		1,243,338
	7,494	Mobileye NV(b)		285,896
	75,250	ModusLink Global Solutions, Inc.(b)(c)		109,865
	104,101	MoneyGram International, Inc.(b)		640,221
	6,117	Monolithic Power Systems, Inc.		381,823
	13,378	Monotype Imaging Holdings, Inc.		294,717
	174,697	Monster Worldwide, Inc.(b)		559,030
	9,673	MTS Systems Corp.		543,816
	9,945	Multi-Fineline Electronix, Inc.(b)		228,735
	16,244	Nanometrics, Inc.(b)		290,118
	48,951	National Instruments Corp.		1,349,579
	13,909	NeoPhotonics Corp.(b)		166,769
	63,429	Net 1 UEPS Technologies, Inc. (South Africa)(b)		756,074
	30,141	NETGEAR, Inc.(b)		1,277,978
	29,686	NetScout Systems, Inc.(b)		660,810
	2,858	NetSuite, Inc.(b)		231,612
	62,664	NeuStar, Inc., Class A(b)(c)		1,471,977
	37,471	Newport Corp.(b)		861,458
	24,895	NIC, Inc.		440,890
	50,970	Oclaro, Inc.(b)(c)		257,399
	28,368	Orbotech Ltd. (Israel)(b)		683,101
	12,574	OSI Systems, Inc.(b)		639,891
	2,893	Palo Alto Networks, Inc.(b)		436,467
	42,700	Pandora Media, Inc.(b)(c)		424,011
	38,129	Park Electrochemical Corp.		621,884
	12,418	PC Connection, Inc.		295,176
	8,603	Pegasystems, Inc.		227,033
	22,277	Perficient, Inc.(b)		465,144
	74,990	Photronics, Inc.(b)		793,394
	26,725	Plantronics, Inc.		1,027,576
	45,548	Plexus Corp.(b)		1,902,084
	151,038	Polycom, Inc.(b)		1,804,904
	9,610	Power Integrations, Inc.		463,683
	29,843	Progress Software Corp.(b)		761,593
	48,629	PTC, Inc.(b)		1,773,013
	16,109	Qlik Technologies, Inc.(b)		495,996
	73,730	QLogic Corp.(b)		965,126
	5,492	Qualys, Inc.(b)		138,289
	593,136	Quantum Corp.(b)		273,021
	50,169	QuinStreet, Inc.(b)		176,595
	18,067	Quotient Technology, Inc.(b)(c)		209,939
	82,275	Rackspace Hosting, Inc.(b)		1,881,629

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, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	28,488	Radware Ltd. (Israel)(b)	$	307,670
	36,464	Rambus, Inc.(b)		423,712
	13,724	RealPage, Inc.(b)		301,791
	40,321	RetailMeNot, Inc.(b)		339,906
	49,737	Rocket Fuel, Inc.(b)(c)		142,248
	31,467	Rofin-Sinar Technologies, Inc.(b)		1,012,923
	15,981	Rogers Corp.(b)		916,670
	62,714	Rovi Corp.(b)		1,105,021
	25,988	Ruckus Wireless, Inc.(b)		357,075
	23,657	Rudolph Technologies, Inc.(b)		328,123
	33,973	Sabre Corp.		983,518
	12,863	SciQuest, Inc.(b)		177,767
	31,749	SeaChange International, Inc.(b)		118,424
	36,110	Semtech Corp.(b)		781,420
	6,489	ServiceNow, Inc.(b)		463,834
	25,760	ShoreTel, Inc.(b)		157,651
	25,520	Sigma Designs, Inc.(b)		161,542
	46,628	Silicon Graphics International Corp.(b)		208,893
	20,678	Silicon Laboratories, Inc.(b)		967,730
	30,909	SINA Corp. (China)(b)		1,548,232
	28,475	Sohu.com, Inc. (China)(b)		1,279,382
	30,268	Sonus Networks, Inc.(b)		250,014
	15,761	Splunk, Inc.(b)		819,257
	3,112	SPS Commerce, Inc.(b)		158,494
	17,348	SS&C Technologies Holdings, Inc.		1,060,830
	2,049	Stamps.com, Inc.(b)(c)		168,756
	78,236	Stratasys Ltd.(b)(c)		1,914,435
	127,914	SunEdison Semiconductor PTE Ltd.(b)(c)		735,506
	31,999	SunPower Corp.(b)(c)		644,460
	19,796	Super Micro Computer, Inc.(b)		532,710
	34,417	Sykes Enterprises, Inc.(b)		1,003,256
	11,123	Synaptics, Inc.(b)		795,851
	16,932	Synchronoss Technologies, Inc.(b)		526,077
	12,130	Syntel, Inc.(b)		515,889
	8,421	Tableau Software, Inc., Class A(b)		435,366
	39,172	Take-Two Interactive Software, Inc.(b)		1,338,899
	20,955	Tangoe, Inc.(b)		184,823
	33,834	Telenav, Inc.(b)		192,854
	15,010	TeleTech Holdings, Inc.		417,128
	23,948	Tessera Technologies, Inc.		687,787
	51,414	TiVo, Inc.(b)		513,112
	119,668	TTM Technologies, Inc.(b)		780,235
	88,130	Twitter, Inc.(b)		1,288,461
	3,918	Tyler Technologies, Inc.(b)		573,634
	4,583	Ubiquiti Networks, Inc.(b)(c)		163,246
	2,464	Ultimate Software Group, Inc. (The)(b)		484,398
	69,116	Ultra Clean Holdings, Inc.(b)		393,270
	17,711	Ultratech, Inc.(b)		384,152
	44,234	United Online, Inc.(b)		479,054
	6,782	Universal Display Corp.(b)		395,458
	10,726	VASCO Data Security International, Inc.(b)(c)		185,882
	51,053	Veeco Instruments, Inc.(b)		939,886
	72,565	VeriFone Systems, Inc.(b)		2,065,200
	39,068	Verint Systems, Inc.(b)		1,322,061
	21,470	ViaSat, Inc.(b)		1,646,749
	139,586	Viavi Solutions, Inc.(b)		908,705

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	13,602	Virtusa Corp.(b)	$	483,415
	21,558	Vishay Precision Group, Inc.(b)		322,508
	30,524	VMware, Inc., Class A(b)(c)		1,737,121
	19,512	Web.com Group, Inc.(b)		390,045
	7,893	WebMD Health Corp.(b)		495,207
	24,734	WEX, Inc.(b)		2,337,116
	7,889	Workday, Inc., Class A(b)		591,517
	45,669	Xcerra Corp.(b)		269,447
	10,426	XO Group, Inc.(b)		184,123
	14,865	Xura, Inc.(b)		332,827
	105,867	Yandex NV, Class A (Russia)(b)		2,167,097
	18,789	Yelp, Inc., Class A(b)		394,569
	22,512	Zebra Technologies Corp., Class A(b)		1,408,351
	5,142	Zillow Group, Inc., Class A(b)(c)		128,653
	9,885	Zillow Group, Inc., Class C(b)(c)		237,635
	625,983	Zynga, Inc., Class A(b)		1,489,840
				172,201,492
		Materials—6.3%
	52,198	A. Schulman, Inc.		1,455,802
	5,653	AEP Industries, Inc.		348,394
	24,314	American Vanguard Corp.(b)		402,397
	7,894	Balchem Corp.		484,376
	100,864	Boise Cascade Co.(b)		2,105,032
	44,016	Calgon Carbon Corp.		721,422
	130,622	Century Aluminum Co.(b)(c)		1,152,086
	38,520	Clearwater Paper Corp.(b)		2,301,185
	166,857	Coeur Mining, Inc.(b)		1,351,542
	4,040	Deltic Timber Corp.		252,500
	19,230	Eagle Materials, Inc.		1,425,328
	104,727	Ferro Corp.(b)		1,334,222
	51,596	Flotek Industries, Inc.(b)(c)		487,582
	25,456	FutureFuel Corp.		286,125
	152,066	Gold Resource Corp.		500,297
	63,747	Greif, Inc., Class A		2,212,021
	37,617	H.B. Fuller Co.		1,682,232
	10,625	Hawkins, Inc.		415,756
	15,532	Haynes International, Inc.		582,916
	30,617	Headwaters, Inc.(b)		612,646
	416,624	Hecla Mining Co.(c)		1,795,649
	35,036	Innophos Holdings, Inc.		1,294,931
	15,606	Innospec, Inc.		754,706
	313,712	Intrepid Potash, Inc.(b)		401,551
	17,537	Kaiser Aluminum Corp.		1,663,034
	127,614	KapStone Paper and Packaging Corp.		2,027,787
	6,684	KMG Chemicals, Inc.		158,344
	46,338	Koppers Holdings, Inc.(b)		1,164,474
	73,541	Kraton Performance Polymers, Inc.(b)		1,670,116
	78,094	Kronos Worldwide, Inc.(c)		519,325
	91,966	Louisiana-Pacific Corp.(b)		1,563,422
	102,253	LSB Industries, Inc.(b)		1,345,650
	31,180	Materion Corp.		903,908
	111,510	McEwen Mining, Inc.(c)		289,926
	51,064	Mercer International, Inc. (Canada)		428,938
	22,768	Minerals Technologies, Inc.		1,363,803
	34,444	Myers Industries, Inc.		464,305
	10,566	Neenah Paper, Inc.		687,741

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, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Materials (continued)
	33,803	Olympic Steel, Inc.	$	764,624
	52,883	OMNOVA Solutions, Inc.(b)		378,113
	31,965	Orion Engineered Carbons SA		454,542
	72,626	P.H. Glatfelter Co.		1,665,314
	211,874	Platform Specialty Products Corp.(b)(c)		2,182,302
	8,788	Quaker Chemical Corp.		782,659
	87,712	Rayonier Advanced Materials, Inc.		899,048
	125,218	Rentech, Inc.(b)		434,506
	233,157	Resolute Forest Products, Inc.(b)(c)		1,354,642
	36,345	Royal Gold, Inc.		2,275,924
	59,370	Ryerson Holding Corp.(b)(c)		527,206
	103,995	Schnitzer Steel Industries, Inc., Class A		2,144,377
	28,613	Schweitzer-Mauduit International, Inc.		984,001
	24,508	Scotts Miracle-Gro Co. (The), Class A		1,734,676
	21,755	Stepan Co.		1,333,364
	131,128	Stillwater Mining Co.(b)		1,599,762
	260,101	SunCoke Energy, Inc.		1,932,550
	148,237	TimkenSteel Corp.		1,888,539
	36,297	Tredegar Corp.		579,300
	23,850	Trinseo SA(b)(c)		1,020,542
	379,334	Tronox Ltd., Class A		2,761,552
	5,943	US Concrete, Inc.(b)		367,040
	33,326	Westlake Chemical Corp.		1,672,632
	50,042	Worthington Industries, Inc.		1,889,086
				70,237,772
		Telecommunication Services—1.4%
	21,342	8x8, Inc.(b)		242,018
	6,881	Atlantic Tele-Network, Inc.		494,813
	25,705	Boingo Wireless, Inc.(b)		197,671
	468,609	Cincinnati Bell, Inc.(b)		1,790,086
	14,261	Cogent Communications Group, Inc.		551,901
	59,745	Consolidated Communications Holdings, Inc.(c)		1,412,372
	40,363	FairPoint Communications, Inc.(b)		535,213
	37,582	General Communication, Inc., Class A(b)		635,136
	13,534	Hawaiian Telcom Holdco, Inc.(b)		311,688
	37,311	IDT Corp., Class B		572,351
	32,293	Inteliquent, Inc.		535,741
	188,642	Intelsat SA(b)(c)		745,136
	147,584	Iridium Communications, Inc.(b)(c)		1,191,003
	27,111	Lumos Networks Corp.(b)		345,665
	62,867	NTELOS Holdings Corp.(b)		581,520
	22,537	ORBCOMM, Inc.(b)		223,342
	17,045	SBA Communications Corp., Class A(b)		1,756,317
	21,540	Shenandoah Telecommunications Co.		617,982
	30,394	Spok Holdings, Inc.		516,394
	26,159	United States Cellular Corp.(b)		1,115,420
	144,849	Vonage Holdings Corp.(b)		676,445
	24,035	Zayo Group Holdings, Inc.(b)		623,948
				15,672,162
		Utilities—1.5%
	43,199	Abengoa Yield PLC (Spain)(c)		778,878
	19,059	American States Water Co.		794,570
	6,032	Artesian Resources Corp., Class A		162,804
	21,504	Avangrid, Inc.(b)		862,310

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Utilities (continued)
	38,830	California Water Service Group	$	1,084,522
	8,918	Chesapeake Utilities Corp.		530,799
	6,512	Connecticut Water Service, Inc.		306,194
	14,352	Consolidated Water Co. Ltd. (Cayman Islands)		199,349
	38,795	El Paso Electric Co.		1,749,655
	40,875	Empire District Electric Co. (The)		1,376,261
	22,319	MGE Energy, Inc.		1,112,602
	11,475	Middlesex Water Co.		419,756
	28,770	Northwest Natural Gas Co.		1,482,806
	16,274	NRG Yield, Inc., Class A		246,226
	29,630	NRG Yield, Inc., Class C(c)		479,413
	14,731	Ormat Technologies, Inc.		639,325
	39,089	Otter Tail Corp.		1,130,454
	28,257	Pattern Energy Group, Inc.		593,397
	11,929	SJW Corp.		410,477
	57,658	South Jersey Industries, Inc.		1,609,235
	24,293	TerraForm Power, Inc., Class A(b)(c)		259,449
	14,494	Unitil Corp.		572,803
				16,801,285
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $1,089,951,125)—100.0%		1,107,234,472
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—8.8%
	97,462,011	Invesco Liquid Assets Portfolio—Institutional Class, 0.44%(d)(e) (Cost $97,462,011)		97,462,011
		Total Investments (Cost $1,187,413,136)—108.8%		1,204,696,483
		Other assets less liabilities—(8.8)%		(97,401,875	)
		Net Assets—100.0%	$	1,107,294,608

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, 2016.

^(d)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of April 30, 2016.

^(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 2H.

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

41

Statements of Assets and Liabilities

April 30, 2016

	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)	$	34,929,287		$	143,114,408		$	4,137,443,597		$	1,107,234,472
Affiliated investments, at value		43,830			63,757			95,253,567			97,462,011
Total investments, at value		34,973,117			143,178,165			4,232,697,164			1,204,696,483
Receivables:
Dividends		7,882			69,077			4,704,675			468,292
Foreign tax reclaims		352			—			3,391			1,636
Investments sold		—			—			184,215			4,218,104
Securities lending		—			—			136,911			371,968
Settlement proceeds		—			—			—			9
Other assets		3,333			3,233			5,586			12
Total Assets		34,984,684			143,250,475			4,237,731,942			1,209,756,504
Liabilities:
Due to custodian		—			—			533,362			1,829,580
Payables:
Investments purchased		—			—			—			2,136,584
Collateral upon return of securities loaned		—			—			91,230,757			97,462,011
Accrued advisory fees		5,300			56,536			953,220			262,182
Accrued trustees’ and officer’s fees		16,883			30,996			119,020			43,264
Accrued expenses		49,221			40,870			2,495,047			728,275
Total Liabilities		71,404			128,402			95,331,406			102,461,896
Net Assets	$	34,913,280		$	143,122,073		$	4,142,400,536		$	1,107,294,608
Net Assets Consist of:
Shares of beneficial interest	$	84,667,069		$	434,106,361		$	4,056,231,904		$	1,171,092,759
Undistributed net investment income (loss)		(28,618	)		347,577			10,310,894			2,493,309
Undistributed net realized gain (loss)		(51,043,028	)		(295,284,309	)		(194,848,628	)		(83,574,807	)
Net unrealized appreciation		1,317,857			3,952,444			270,706,366			17,283,347
Net Assets	$	34,913,280		$	143,122,073		$	4,142,400,536		$	1,107,294,608
Shares outstanding (unlimited amount authorized, $0.01 par value)		500,000			2,000,000			45,950,000			11,350,000
Net asset value	$	69.83		$	71.56		$	90.15		$	97.56
Market price	$	69.82		$	71.55		$	90.13		$	97.55
Unaffiliated investments, at cost	$	33,611,430		$	139,161,964		$	3,866,336,835		$	1,089,951,125
Affiliated investments, at cost	$	43,830		$	63,757		$	95,653,963		$	97,462,011
Total investments, at cost	$	33,655,260		$	139,225,721		$	3,961,990,798		$	1,187,413,136
(a) Includes securities on loan with an aggregate value of	$	—		$	—		$	90,418,569		$	92,893,546

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

42

Statements of Operations

For the year ended April 30, 2016

	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	$	227,687		$	2,675,088		$	107,596,640		$	16,326,759
Affiliated dividend income		139			233			191,053			1,569
Securities lending income		—			—			1,005,872			2,634,746
Foreign withholding tax		(252	)		(301	)		(12,655	)		(14,253	)
Total Income		227,574			2,675,020			108,780,910			18,948,821
Expenses:
Advisory fees		221,346			773,110			12,228,875			3,251,067
Sub-licensing fees		42,672			46,387			3,799,637			1,010,169
Accounting & administration fees		34,762			34,794			786,805			209,139
Professional fees		28,155			33,522			89,673			41,727
Trustees’ and officer’s fees		8,480			10,569			85,861			28,514
Custodian & transfer agent fees		4,902			10,453			84,473			33,161
Other expenses		16,293			23,012			223,496			57,591
Total Expenses		356,610			931,847			17,298,820			4,631,368
Less: Waivers		(91,128	)		(4,305	)		(857,161	)		(260,927	)
Net Expenses		265,482			927,542			16,441,659			4,370,441
Net Investment Income (Loss)		(37,908	)		1,747,478			92,339,251			14,578,380
Realized and Unrealized Gain (Loss):
Net realized gain (loss) from:
Investment securities		(6,341,759	)		(19,488,083	)		(29,318,801	)		(54,115,609	)
In-kind redemptions		2,075,238			18,629,348			348,430,270			81,441,507
Foreign currencies		—			—			—			(78	)
Net realized gain (loss)		(4,266,521	)		(858,735	)		319,111,469			27,325,820
Net change in unrealized appreciation (depreciation) on investment securities		(2,129,082	)		(1,716,563	)		(458,584,354	)		(101,820,682	)
Net realized and unrealized gain (loss)		(6,395,603	)		(2,575,298	)		(139,472,885	)		(74,494,862	)
Net increase (decrease) in net assets resulting from operations	$	(6,433,511	)	$	(827,820	)	$	(47,133,634	)	$	(59,916,482	)

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

43

Statements of Changes in Net Assets

For the years ended April 30, 2016 and 2015

	PowerShares DWA NASDAQ Momentum Portfolio (DWAQ)						PowerShares Dynamic Market Portfolio (PWC)
	2016			2015			2016			2015
Operations:
Net investment income (loss)	$	(37,908	)	$	22,805		$	1,747,478		$	1,762,280
Net realized gain (loss)		(4,266,521	)		(1,857,809	)		(858,735	)		10,422,932
Net change in unrealized appreciation (depreciation)		(2,129,082	)		5,672,817			(1,716,563	)		(622,185	)
Net increase (decrease) in net assets resulting from operations		(6,433,511	)		3,837,813			(827,820	)		11,563,027
Distributions to Shareholders from:
Net investment income		(22,077	)		—			(1,698,632	)		(1,899,933	)
Return of capital		(2,759	)		—			—			—
Total distributions to shareholders		(24,836	)		—			(1,698,632	)		(1,899,933	)
Shareholder Transactions:
Proceeds from shares sold		35,446,415			17,886,325			152,722,956			389,553,289
Value of shares repurchased		(24,097,986	)		(17,435,268	)		(176,024,640	)		(416,484,985	)
Net increase (decrease) in net assets resulting from shares transactions		11,348,429			451,057			(23,301,684	)		(26,931,696	)
Increase (Decrease) in Net Assets		4,890,082			4,288,870			(25,828,136	)		(17,268,602	)
Net Assets:
Beginning of year		30,023,198			25,734,328			168,950,209			186,218,811
End of year	$	34,913,280		$	30,023,198		$	143,122,073		$	168,950,209
Undistributed net investment income (loss) at end of year	$	(28,618	)	$	8,342		$	347,577		$	161,208
Changes in Shares Outstanding:
Shares sold		450,000			250,000			2,050,000			5,300,000
Shares repurchased		(350,000	)		(250,000	)		(2,350,000	)		(5,650,000	)
Shares outstanding, beginning of year		400,000			400,000			2,300,000			2,650,000
Shares outstanding, end of year		500,000			400,000			2,000,000			2,300,000

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

44

PowerShares FTSE RAFI US 1000 Portfolio (PRF)						PowerShares FTSE RAFI US 1500 Small-Mid Portfolio  (PRFZ)
2016			2015			2016			2015
$	92,339,251		$	77,118,321		$	14,578,380		$	14,415,497
	319,111,469			202,181,424			27,325,820			74,237,548
	(458,584,354	)		110,266,901			(101,820,682	)		1,015,098
	(47,133,634	)		389,566,646			(59,916,482	)		89,668,143
	(96,826,783	)		(73,911,874	)		(14,367,669	)		(14,188,599	)
	—			—			—			—
	(96,826,783	)		(73,911,874	)		(14,367,669	)		(14,188,599	)
	761,845,771			1,355,924,502			284,803,033			319,485,155
	(1,033,501,636	)		(419,258,912	)		(261,733,949	)		(195,186,019	)
	(271,655,865	)		936,665,590			23,069,084			124,299,136
	(415,616,282	)		1,252,320,362			(51,215,067	)		199,778,680
	4,558,016,818			3,305,696,456			1,158,509,675			958,730,995
$	4,142,400,536		$	4,558,016,818		$	1,107,294,608		$	1,158,509,675
$	10,310,894		$	10,571,766		$	2,493,309		$	2,242,185
	8,600,000			15,150,000			3,000,000			3,150,000
	(11,950,000	)		(4,550,000	)		(2,850,000	)		(1,900,000	)
	49,300,000			38,700,000			11,200,000			9,950,000
	45,950,000			49,300,000			11,350,000			11,200,000

45

Financial Highlights

PowerShares DWA NASDAQ Momentum Portfolio (DWAQ)

	Year Ended April 30,
	2016			2015			2014			2013			2012
Per Share Operating Performance:
Net asset value at beginning of year	$	75.06		$	64.34		$	55.40		$	51.32		$	53.76
Net investment income (loss)(a)		(0.06	)		0.06			0.21			0.71	(b)		0.10
Net realized and unrealized gain (loss) on investments		(5.11	)		10.66			9.00			4.18			(2.50	)
Total from investment operations		(5.17	)		10.72			9.21			4.89			(2.40	)
Distributions to shareholders from:
Net investment income		(0.05	)		—			(0.27	)		(0.81	)		(0.04	)
Return of capital		(0.01	)		—			—			—			—
Total distributions		(0.06	)		—			(0.27	)		(0.81	)		(0.04	)
Net asset value at end of year	$	69.83		$	75.06		$	64.34		$	55.40		$	51.32
Market price at end of year(c)	$	69.82		$	75.10		$	64.32		$	55.32		$	51.30
Net Asset Value Total Return(d)		(6.90	)%		16.66	%		16.64	%		9.75	%		(4.46	)%
Market Price Total Return(d)		(6.96	)%		16.76	%		16.77	%		9.63	%		(4.48	)%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	34,913		$	30,023		$	25,734		$	22,160		$	28,224
Ratio to average net assets of:
Expenses, after Waivers		0.60	%		0.60	%		0.60	%(e)		0.60	%		0.60	%
Expenses, prior to Waivers		0.81	%		0.96	%		0.91	%(e)		0.95	%		0.93	%
Net investment income (loss), after Waivers		(0.09	)%		0.09	%		0.32	%		1.42	%(b)		0.22	%
Portfolio turnover rate(f)		118	%		154	%		296	%		118	%		99	%

^(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 companies’ 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 investment companies 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 for periods less than one year, if applicable, 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,
	2016			2015			2014			2013			2012
Per Share Operating Performance:
Net asset value at beginning of year	$	73.46		$	70.27		$	56.26		$	46.78		$	48.26
Net investment income(a)		0.82			0.68			0.60			0.82			0.44
Net realized and unrealized gain (loss) on investments		(1.91	)		3.25			13.99			9.51			(1.52	)
Total from investment operations		(1.09	)		3.93			14.59			10.33			(1.08	)
Distributions to shareholders from:
Net investment income		(0.81	)		(0.74	)		(0.58	)		(0.85	)		(0.40	)
Net asset value at end of year	$	71.56		$	73.46		$	70.27		$	56.26		$	46.78
Market price at end of year(b)	$	71.55		$	73.40		$	70.27		$	56.23		$	46.75
Net Asset Value Total Return(c)		(1.50	)%		5.58	%		26.09	%		22.39	%		(2.12	)%
Market Price Total Return(c)		(1.43	)%		5.49	%		26.15	%		22.40	%		(2.14	)%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	143,122		$	168,950		$	186,219		$	140,658		$	128,644
Ratio to average net assets of:
Expenses, after Waivers		0.60	%		0.59	%		0.60	%		0.60	%		0.60	%
Expenses, prior to Waivers		0.60	%		0.59	%		0.60	%		0.60	%		0.62	%
Net investment income, after Waivers		1.13	%		0.93	%		0.94	%		1.68	%		1.00	%
Portfolio turnover rate(d)		231	%		237	%		244	%		166	%		133	%

^(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 for periods less than one year, if applicable, 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.

46

Financial Highlights (continued)

PowerShares FTSE RAFI US 1000 Portfolio (PRF)

	Year Ended April 30,
	2016			2015			2014			2013			2012
Per Share Operating Performance:
Net asset value at beginning of year	$	92.45		$	85.42		$	71.42		$	59.73		$	60.72
Net investment income(a)		1.93			1.72			1.45			1.31			1.12
Net realized and unrealized gain (loss) on investments		(2.23	)		6.93			13.89			11.66			(0.99	)
Total from investment operations		(0.30	)		8.65			15.34			12.97			0.13
Distributions to shareholders from:
Net investment income		(2.00	)		(1.62	)		(1.34	)		(1.28	)		(1.12	)
Net asset value at end of year	$	90.15		$	92.45		$	85.42		$	71.42		$	59.73
Market price at end of year(b)	$	90.13		$	92.43		$	85.37		$	71.42		$	59.72
Net Asset Value Total Return(c)		(0.23	)%		10.19	%		21.68	%		22.06	%		0.41	%
Market Price Total Return(c)		(0.24	)%		10.23	%		21.61	%		22.09	%		0.41	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	4,142,401		$	4,558,017		$	3,305,696		$	1,778,450		$	1,388,661
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	%		0.41	%		0.43	%		0.43	%
Net investment income, after Waivers		2.19	%		1.92	%		1.84	%		2.10	%		2.00	%
Portfolio turnover rate(d)		12	%		10	%		12	%		13	%		6	%

^(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 for periods less than one year, if applicable, 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,
	2016			2015			2014			2013			2012
Per Share Operating Performance:
Net asset value at beginning of year	$	103.44		$	96.35		$	77.76		$	66.71		$	70.66
Net investment income(a)		1.25			1.38			0.98			1.13			0.73
Net realized and unrealized gain (loss) on investments		(5.93	)		7.04			18.52			11.08			(4.04	)
Total from investment operations		(4.68	)		8.42			19.50			12.21			(3.31	)
Distributions to shareholders from:
Net investment income		(1.20	)		(1.33	)		(0.91	)		(1.16	)		(0.64	)
Net asset value at end of year	$	97.56		$	103.44		$	96.35		$	77.76		$	66.71
Market price at end of year(b)	$	97.55		$	103.45		$	96.38		$	77.67		$	66.72
Net Asset Value Total Return(c)		(4.49	)%		8.80	%		25.22	%		18.56	%		(4.60	)%
Market Price Total Return(c)		(4.52	)%		8.78	%		25.40	%		18.41	%		(4.56	)%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	1,107,295		$	1,158,510		$	958,731		$	563,763		$	463,645
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	%		0.42	%		0.42	%		0.43	%		0.44	%
Net investment income, after Waivers		1.30	%		1.39	%		1.08	%		1.64	%		1.17	%
Portfolio turnover rate(d)		28	%		26	%		31	%		30	%		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)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, 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.

47

Notes to Financial Statements

PowerShares Exchange-Traded Fund Trust

April 30, 2016

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, 2016, 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 Leaders 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”).

48

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 will 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-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.

The Funds may periodically participate in litigation related to each Fund’s investments. As such, the Funds may receive proceeds from litigation settlements. Any proceeds received are included in the Statements of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.

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

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Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statements of Operations and the Statements of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of each Fund’s net asset value and, accordingly, they reduce each Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statements of Operations and the Statements of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between each Fund and the Adviser.

E. Country Determination

For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the Adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.

F. 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.

G. 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.

H. Securities Lending

During the fiscal year ended April 30, 2016, 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 securities) 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 Schedules of Investments. Each Fund bears the risk of loss with respect to the investment of collateral. 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. When loaning securities, each Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to each 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. The securities loaned are subject to termination at the option of the borrower or each Fund. Upon termination, the borrower will return to each Fund the securities loaned and each Fund will return the collateral. 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. Each Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to each Fund. Some of these losses may be indemnified by the lending agent. Each 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 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, 2017. 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, 2017. Unless the Adviser continues the Expense Agreement, it will terminate on August 31, 2017. During its term, the Expense Agreement cannot be terminated or amended to increase the Expense Cap without approval of the Board of Trustees.

Further, through August 31, 2018, 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, 2016, the Adviser waived fees and/or paid Fund expenses for each Fund in the following amounts:

DWA NASDAQ Momentum Portfolio	$	91,128
Dynamic Market Portfolio		4,305
FTSE RAFI US 1000 Portfolio		857,161
FTSE RAFI US 1500 Small-Mid Portfolio		260,927

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 Expense Agreement and the expiration schedule at April 30, 2016 are as follows:

	Total Potential Recapture Amounts		Potential Recapture Amounts Expiring
			4/30/17		4/30/18		4/30/19
FTSE RAFI US 1000 Portfolio	$	2,300,891	$	637,211	$	811,780	$	851,900
FTSE RAFI US 1500 Small-Mid Portfolio		853,743		273,970		320,530		259,243

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, LLC
Dynamic Market Portfolio	NYSE Group, Inc.
FTSE RAFI US 1000 Portfolio	FTSE International Ltd.
FTSE RAFI US 1500 Small-Mid Portfolio	FTSE International Ltd.

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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 FTSE RAFI US 1000 Portfolio’s transactions in, and earnings from, its investments in affiliates for the fiscal year ended April 30, 2016.

FTSE RAFI US 1000 Portfolio

	Value April 30, 2015		Purchases at Cost		Proceeds from Sales			Change in Unrealized Appreciation (Depreciation)			Realized Gain (Loss)			Value April 30, 2016		Dividend Income
Invesco Ltd.	$	3,386,416	$	1,187,589	$	(568,820	)	$	(937,869	)	$	80,447		$	3,147,763	$	86,395
Invesco Mortgage Capital, Inc. REIT		898,913		245,110		(121,810	)		(131,337	)		(15,829	)		875,047		98,853
Total Investments in Affiliates	$	4,285,329	$	1,432,699	$	(690,630	)	$	(1,069,206	)	$	64,618		$	4,022,810	$	185,248

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, 2016, 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	$	4,232,524,983	$	—	$	172,181	$	4,232,697,164

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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, 2016 and 2015:

	2016				2015
	Ordinary Income		Return of Capital		Ordinary Income		Return of Capital
DWA NASDAQ Momentum Portfolio	$	22,077	$	2,759	$	—	$	—
Dynamic Market Portfolio		1,698,632		—		1,899,933		—
FTSE RAFI US 1000 Portfolio		96,826,783		—		73,911,874		—
FTSE RAFI US 1500 Small-Mid Portfolio		14,367,669		—		14,188,599		—

Tax Components of Net Assets at Fiscal Year-End:

	Undistributed Ordinary Income		Temporary Book/Tax Differences			Net Unrealized Appreciation— Investment Securities		Capital Loss Carryforwards			Late-Year Ordinary/ Post-October Deferrals*			Shares of Beneficial Interest		Total Net Assets
DWA NASDAQ Momentum Portfolio**	$	—	$	(16,024	)	$	1,298,138	$	(47,309,750	)	$	(3,726,153	)	$	84,667,069	$	34,913,280
Dynamic Market Portfolio		377,302		(29,725	)		3,871,857		(286,013,637	)		(9,190,085	)		434,106,361		143,122,073
FTSE RAFI US 1000 Portfolio		10,420,918		(110,024	)		232,856,625		(126,204,238	)		(30,794,649	)		4,056,231,904		4,142,400,536
FTSE RAFI US 1500 Small-Mid Portfolio		3,083,333		(40,462	)		2,074,564		(16,915,709	)		(51,999,877	)		1,171,092,759		1,107,294,608

* 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 NASDAQ Momentum Portfolio incurred and will elect to defer Late-Year Ordinary Losses of $12,594 and Post-October Capital Losses of $3,713,559.

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, 2016:

							Post-effective/no expiration
	2017		2018		2019		Short-Term		Long-Term		Total*		Expired
DWA NASDAQ Momentum Portfolio	$	15,764,010	$	14,947,690	$	3,683,431	$	12,914,619	$	—	$	47,309,750	$	11,353,752
Dynamic Market Portfolio		96,635,542		104,214,879		15,461,574		69,701,642		—		286,013,637		39,899,556
FTSE RAFI US 1000 Portfolio		37,905,805		49,808,238		38,490,195		—		—		126,204,238		—
FTSE RAFI US 1500 Small-Mid Portfolio		4,933,892		5,168,127		2,475,894		1,102,983		3,234,813		16,915,709		—

* 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, 2016, 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	$	52,301,867	$	52,716,531
Dynamic Market Portfolio		356,186,002		354,929,017
FTSE RAFI US 1000 Portfolio		491,780,226		495,204,887
FTSE RAFI US 1500 Small-Mid Portfolio		313,227,973		311,994,849

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For the fiscal year ended April 30, 2016, in-kind transactions associated with creations and redemptions were as follows:

	Cost of Securities Received		Value of Securities Delivered
DWA NASDAQ Momentum Portfolio	$	35,452,438	$	23,742,892
Dynamic Market Portfolio		152,548,573		176,990,407
FTSE RAFI US 1000 Portfolio		760,898,618		1,028,891,810
FTSE RAFI US 1500 Small-Mid Portfolio		283,154,015		258,847,653

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

At April 30, 2016, 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	$	2,041,516	$	(743,378	)	$	1,298,138	$	33,674,979
Dynamic Market Portfolio		10,254,486		(6,382,629	)		3,871,857		139,306,308
FTSE RAFI US 1000 Portfolio		432,019,053		(199,162,428	)		232,856,625		3,999,840,539
FTSE RAFI US 1500 Small-Mid Portfolio		124,908,406		(122,833,842	)		2,074,564		1,202,621,919

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, 2016, 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, 2016, the reclassifications were as follows:

	Undistributed Net Investment Income (Loss)		Undistributed Net Realized Gain (Loss)			Shares of Beneficial Interest
DWA NASDAQ Momentum Portfolio	$	23,025	$	9,311,346		$	(9,334,371	)
Dynamic Market Portfolio		137,523		21,501,868			(21,639,391	)
FTSE RAFI US 1000 Portfolio		4,226,660		(335,088,658	)		330,861,998
FTSE RAFI US 1500 Small-Mid Portfolio		40,413		(78,561,093	)		78,520,680

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

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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, 2016, 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, 2016 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 23, 2016

57

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, 2016.

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, 2015		Ending Account Value April 30, 2016		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	$	919.03		0.60	%	$	2.86
Hypothetical (5% return before expenses)		1,000.00		1,021.88		0.60			3.02
PowerShares Dynamic Market Portfolio (PWC)
Actual		1,000.00		958.69		0.60			2.92
Hypothetical (5% return before expenses)		1,000.00		1,021.88		0.60			3.02
PowerShares FTSE RAFI US 1000 Portfolio (PRF)
Actual		1,000.00		1,023.11		0.39			1.96
Hypothetical (5% return before expenses)		1,000.00		1,022.92		0.39			1.96
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ)
Actual		1,000.00		1,011.21		0.39			1.95
Hypothetical (5% return before expenses)		1,000.00		1,022.92		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, 2016. Expenses are calculated by multiplying the Fund’s annualized expense ratio by the average account value for the period, then multiplying the result by 182/366. Expense ratios for the most recent six-month period may differ from expense ratios based on annualized data in the Financial Highlights.

58

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, 2016:

	Qualified Dividend Income*			Dividends Received Deduction*
PowerShares DWA NASDAQ Momentum Portfolio		89	%		89	%
PowerShares Dynamic Market Portfolio		100	%		100	%
PowerShares FTSE RAFI US 1000 Portfolio		100	%		100	%
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio		83	%		76	%

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

59

Trustees and Officers

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

The Trustees and officers information is current as of April 30, 2016.

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	Chairman of the Nominating and Governance Committee and Trustee	Chairman of the Nominating and Governance Committee and 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).	124	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 (2010-2016); 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.	124	None
Marc M. Kole—1960 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Chairman of the Audit Committee and Trustee	Chairman of the Audit Committee since 2008; and Trustee since 2006	Senior Director of Finance, By The Hand Club for Kids (2015-Present); 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).	124	None
Yung Bong Lim—1964 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Chairman of the Investment Oversight Committee and Trustee	Chairman of the Investment Oversight Committee since 2014; Trustee since 2013	Managing Partner, Residential Dynamics Group LLC (2008-Present); formerly, Managing Director, Citadel Investment Group, L.L.C. (1999-2007).	124	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, 2016, the “Fund Family” consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 71 portfolios advised by the Adviser.

60

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
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).	124	None
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).	124	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 and Chief Executive Officer, Stone Pillar Advisors, Ltd. (2010-Present); formerly, Chairman, President and Chief Executive Officer, Community Financial Shares, Inc. and Community Bank—Wheaton/Glen Ellyn (subsidiary) (2013-2015); 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).	124	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, 2016, the “Fund Family” consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 71 portfolios advised by the Adviser.

61

Trustees and Officers (continued)

The Non-Independent Trustees and the executive officers of the Trust, their term of office and length of time served, their principal business occupations during 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 Trustees are shown below.

Name, Address and Year of Birth of Non-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 Non-Independent Trustee	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. (2007-Present); Director, Invesco Advisers, Inc. (2009-Present); Director, Invesco Finance PLC, 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., IVZ, Inc. and Invesco Asset Management (Bermuda) Ltd.; Manager, Horizon Flight Works LLC; Director and Secretary, IVZ Bahamas Private Limited; formerly, Director, INVESCO Funds Group, Inc., 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.	124	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, 2016, the Fund Complex consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 71 portfolios advised by the Adviser.

62

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
Daniel E. Draper—1968 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	President and Principal Executive Officer	Since 2015	President and Principal Executive Officer, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2015-Present); Chief Executive Officer (2016-Present) and Managing Director (2013-Present), Invesco PowerShares Capital Management LLC; Senior Vice President, Invesco Distributors, Inc. (2014-Present); formerly, 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 (2013-2015) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-2015); 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, 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).
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 (2010-Present); formerly, Vice President of Portfolio Management, Invesco PowerShares Capital Management LLC (2008-2010); 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).
Christopher Joe—1969 Invesco PowerShares Capital Management LLC 11 Greenway Plaza, Suite 1000 Houston, TX 77046-1173	Chief Compliance Officer	Since 2012	Chief Compliance Officer of Invesco PowerShares Capital Management LLC (2015-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); formerly, Chief Compliance Officer, Invesco Investment Advisers, LLC (registered investment adviser) (2010–2013), U.S. Compliance Director, Invesco, Ltd. (2006-2014) and Deputy Chief Compliance Officer of Invesco Advisers, Inc. (2014-2015).

* 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.

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
Sheri Morris—1964 Invesco Management Group, Inc. 11 Greenway Plaza, Suite 1000 Houston, TX 77046	Vice President	Since 2012	President, Principal Executive Officer and Treasurer, The Invesco Funds (2016-Present); 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, Vice President, Treasurer and Principal Financial Officer, The Invesco Funds (2008-2016); 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.
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 (2010-Present) and Secretary (2015-Present), 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).
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 Services, Invesco PowerShares Capital Management LLC (2013-Present).
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, and 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, 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.); Chief Administrative Officer, North American Retail, Invesco Ltd. (2007-Present); Director, Invesco Corporate Class Inc. (2014-Present); Director, Invesco Global Direct Real Estate Feeder GP Ltd. (2015-Present); Director, Invesco Canada Holdings Inc. (2002-Present); Director, Invesco Financial Services Ltd. / Services Financiers Invesco Ltée and Trimark Investments Ltd./Placements Trimark Ltée (2014-Present); Director, Invesco IP Holdings (Canada) Ltd. (2016-Present); Director, Invesco Global Direct Real Estate GP Ltd. (2015-Present); formerly, Executive Vice President and Chief Financial Officer, Invesco Inc. (2009-2015); Director, Executive Vice President and Chief Financial Officer, Invesco Canada Ltd. (formerly, Invesco Trimark Ltd.) (2000-2011).

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.

64

Board Considerations Regarding Continuation of Investment Advisory Agreement

At a meeting held on April 14, 2016, 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^TM Portfolio

PowerShares Cleantech^TM 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 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 Russell Top 200 Equal Weight Portfolio

PowerShares Russell Top 200 Pure Growth Portfolio

PowerShares Russell Top 200 Pure Value Portfolio

PowerShares Russell Midcap Equal Weight Portfolio

PowerShares Russell Midcap Pure Growth Portfolio

PowerShares Russell Midcap Pure Value Portfolio

PowerShares Russell 2000 Equal Weight Portfolio

PowerShares Russell 2000 Pure Growth Portfolio

PowerShares Russell 2000 Pure Value Portfolio

PowerShares S&P 500^® 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 for each Fund, (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.

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, 2015, 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 certain Funds and their underlying indexes. In reviewing the tracking error reports, 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 correlation and tracking error for each Fund was within the targeted range set forth in the Trust’s registration statement and 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.

65

Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)

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^TM Portfolio, PowerShares High Yield Equity Dividend Achievers^TM Portfolio, PowerShares International Dividend Achievers^TM Portfolio, PowerShares FTSE RAFI US 1000 Portfolio, PowerShares FTSE RAFI US 1500 Small-Mid Portfolio, PowerShares Russell Top 200 Equal Weight Portfolio, PowerShares Russell Top 200 Pure Growth Portfolio, PowerShares Russell Top 200 Pure Value Portfolio, PowerShares Russell Midcap Equal Weight Portfolio, PowerShares Russell Midcap Pure Growth Portfolio, PowerShares Russell Midcap Pure Value Portfolio, PowerShares Russell 2000 Equal Weight Portfolio, PowerShares Russell 2000 Pure Growth Portfolio, PowerShares Russell 2000 Pure Value Portfolio and PowerShares S&P 500^® Quality Portfolio;

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

● 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 Russell Top 200 Pure Growth Portfolio, PowerShares Russell Top 200 Pure Value Portfolio, PowerShares Russell Midcap Pure Growth Portfolio, PowerShares Russell Midcap Pure Value Portfolio, PowerShares Russell 2000 Pure Growth, Portfolio, PowerShares Russell 2000 Pure Value Portfolio and PowerShares S&P 500^® Quality Portfolio; and

● 0.25% of the Fund’s average daily net assets for each of PowerShares Russell Top 200 Equal Weight Portfolio, PowerShares Russell Midcap Equal Weight Portfolio and PowerShares Russell 2000 Equal Weight Portfolio (The net advisory fees, after giving effect to the Expense Caps below, were 0.01%, -0.05% and -0.39% and, respectively, for PowerShares Russell Top 200 Equal Weight Portfolio, PowerShares Russell Midcap Equal Weight Portfolio and PowerShares Russell 2000 Equal Weight 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, 2017, 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^TM Portfolio, PowerShares High Yield Equity Dividend Achievers^TM Portfolio and PowerShares International Dividend Achievers^TM 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 Russell Top 200 Pure Growth Portfolio, PowerShares Russell Top 200 Pure Value Portfolio, PowerShares Russell Midcap Pure Growth Portfolio, PowerShares Russell Midcap Pure Value Portfolio, PowerShares Russell 2000 Pure Growth Portfolio and PowerShares Russell 2000 Pure 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^® Quality Portfolio;

● 0.25%, excluding interest expenses, offering costs, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses for PowerShares Top 200 Equal Weight Portfolio, PowerShares Russell Midcap Equal Weight Portfolio and PowerShares Russell 2000 Equal Weight 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

66

Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)

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

67

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 Financial Preferred Portfolio		N/A	X
PowerShares FTSE RAFI US 1000 Portfolio			X
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio	X		X
PowerShares Russell Top 200 Equal Weight Portfolio		X	X
PowerShares Russell Top 200 Pure Growth Portfolio			X
PowerShares Russell Top 200 Pure Value Portfolio			X
PowerShares Russell Midcap Equal Weight Portfolio			X
PowerShares Russell Midcap Pure Growth Portfolio	X	X	X
PowerShares Russell Midcap Pure Value Portfolio	X		X
PowerShares Russell 2000 Equal Weight Portfolio	X		X
PowerShares Russell 2000 Pure Growth Portfolio		X	X
PowerShares Russell 2000 Pure Value Portfolio			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 Quality Portfolio			X
PowerShares Water Resources Portfolio			X
PowerShares WilderHill Clean Energy Portfolio			X
PowerShares WilderHill Progressive Energy Portfolio			X
PowerShares Zacks Micro Cap Portfolio			X

* 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			X
PowerShares Buyback Achievers Portfolio			X
PowerShares Cleantech Portfolio			X
PowerShares Dividend Achievers Portfolio		X	X
PowerShares DWA Basic Materials Momentum Portfolio			X
PowerShares DWA Consumer Cyclicals Momentum Portfolio			X
PowerShares DWA Consumer Staples Momentum Portfolio			X
PowerShares DWA Energy Momentum Portfolio			X
PowerShares DWA Financial Momentum Portfolio			X
PowerShares DWA Healthcare Momentum Portfolio			X
PowerShares DWA Industrials Momentum Portfolio			X

68

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 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			X
PowerShares Dynamic Building & Construction Portfolio			X
PowerShares Dynamic Energy Exploration & Production Portfolio			X
PowerShares Dynamic Food & Beverage Portfolio			X
PowerShares Dynamic Large Cap Growth Portfolio			X
PowerShares Dynamic Large Cap Value Portfolio			X
PowerShares Dynamic Leisure and Entertainment Portfolio			X
PowerShares Dynamic Market Portfolio			X
PowerShares Dynamic Media Portfolio			X
PowerShares Dynamic Networking Portfolio			X
PowerShares Dynamic Oil & Gas Services Portfolio			X
PowerShares Dynamic Pharmaceuticals Portfolio			X
PowerShares Dynamic Retail Portfolio			X
PowerShares Dynamic Semiconductors Portfolio			X
PowerShares Dynamic Software Portfolio			X
PowerShares Financial Preferred Portfolio		N/A	X
PowerShares FTSE RAFI US 1000 Portfolio	X	X	X
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio	X	X	X
PowerShares Russell Top 200 Equal Weight Portfolio		X	X
PowerShares Russell Top 200 Pure Growth Portfolio		X	X
PowerShares Russell Top 200 Pure Value Portfolio			X
PowerShares Russell Midcap Equal Weight Portfolio		X	X
PowerShares Russell Midcap Pure Growth Portfolio	X	X	X
PowerShares Russell Midcap Pure Value Portfolio	X		X
PowerShares Russell 2000 Equal Weight Portfolio	X	X	X
PowerShares Russell 2000 Pure Growth Portfolio		X	X
PowerShares Russell 2000 Pure 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 Quality Portfolio	X	X	X
PowerShares Water Resources Portfolio			X
PowerShares WilderHill Clean Energy Portfolio			X
PowerShares WilderHill Progressive Energy Portfolio			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.

69

Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)

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 Cap agreed to by the Adviser. 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.

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

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

70

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.

©2016 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, 2016

2016 Annual Report to Shareholders

PWB	PowerShares Dynamic Large Cap Growth Portfolio
PWV	PowerShares Dynamic Large Cap Value Portfolio
EQWS	PowerShares Russell 2000 Equal Weight Portfolio
PXSG	PowerShares Russell 2000 Pure Growth Portfolio
PXSV	PowerShares Russell 2000 Pure Value Portfolio
EQWM	PowerShares Russell Midcap Equal Weight Portfolio
PXMG	PowerShares Russell Midcap Pure Growth Portfolio
PXMV	PowerShares Russell Midcap Pure Value Portfolio
EQWL	PowerShares Russell Top 200 Equal Weight Portfolio
PXLG	PowerShares Russell Top 200 Pure Growth Portfolio
PXLV	PowerShares Russell Top 200 Pure Value Portfolio
PZI	PowerShares Zacks Micro Cap Portfolio

Table of Contents

The Market Environment	3
Manager’s Analysis	4
Style Portfolios
Schedules of Investments
PowerShares Dynamic Large Cap Growth Portfolio (PWB)	40
PowerShares Dynamic Large Cap Value Portfolio (PWV)	41
PowerShares Russell 2000 Equal Weight Portfolio (EQWS)	42
PowerShares Russell 2000 Pure Growth Portfolio (PXSG)	60
PowerShares Russell 2000 Pure Value Portfolio (PXSV)	64
PowerShares Russell Midcap Equal Weight Portfolio (EQWM)	68
PowerShares Russell Midcap Pure Growth Portfolio (PXMG)	76
PowerShares Russell Midcap Pure Value Portfolio (PXMV)	78
PowerShares Russell Top 200 Equal Weight Portfolio (EQWL)	80
PowerShares Russell Top 200 Pure Growth Portfolio (PXLG)	83
PowerShares Russell Top 200 Pure Value Portfolio (PXLV)	84
PowerShares Zacks Micro Cap Portfolio (PZI)	85
Statements of Assets and Liabilities	90
Statements of Operations	92
Statements of Changes in Net Assets	94
Financial Highlights	98
Notes to Financial Statements	107
Report of Independent Registered Public Accounting Firm	118
Fees and Expenses	119
Tax Information	121
Trustees and Officers	122
Board Considerations Regarding Continuation of Investment Advisory Agreement	127

2

The Market Environment

US Equity

Although the health of individual economic sectors varied dramatically, the US economy overall continued its slow but steady growth during the fiscal year ended April 30, 2016. This modest growth led to recurring debate over whether the US economy could withstand global recessionary forces. Many energy, industrial and materials companies experienced cyclical downturns resembling a mild recession even as many consumer-related companies benefited from continued low interest rates, increased availability of credit and a better employment picture. Another significant downturn in oil prices reduced capital investment but also reduced consumers’ energy and gasoline costs.

In the first half of the reporting period, US equity market performance was greatly affected by expectations of when, and whether, the US Federal Reserve (the “Fed”) might raise interest rates—and the impact the Fed’s action might have. Markets moved lower in the summer of 2015 as a significant downturn in China’s financial markets and weak global economic growth led to increased concern about the sustainability of US economic growth. In the fall, markets rallied and the Fed saw enough economic stabilization to finally raise interest rates.

US stocks began 2016 on a negative note. Together with a sharp decline in oil prices, this suggested a global recession might be imminent and caused investors to become decidedly risk averse; this helped short-term and income-oriented investments, but hurt longer-term and growth-oriented investments. As companies reported earnings and fundamentals that were better than had been feared, stocks rallied sharply in late February and March. Additionally, oil prices strengthened modestly on the back of a weaker US dollar and as Saudi Arabia and Russia considered a freeze on their oil output. Overall, US equity markets were mixed, with the S&P 500 Index, considered representative of the performance of the US stock market, finishing the reporting period modestly higher.

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 cap companies that comprise the Index.

NYSE Group, Inc. (the “Index Provider”) compiles, maintains and calculates the Index. Strictly in accordance with its guidelines and mandated procedures, the Index Provider selects 50 large cap 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, 2016, on a market price basis, the Fund returned 2.73%. On a net asset value (“NAV”) basis, the Fund returned 2.70%. During the same time period, the Index returned 3.29%. 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 1.07%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 640 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 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 in the information technology sector during the fiscal year ended April 30, 2016. The majority of the Fund’s outperformance relative to the Benchmark Index during the period can be attributed to stock selection within the information technology sector followed by the Fund’s allocation to and stock selection within the consumer discretionary sector.

For the fiscal year ended April 30, 2016, the consumer discretionary sector contributed most significantly to the Fund’s return, followed by the information technology and consumer staples sectors, respectively. The health care sector detracted most significantly from the Fund’s return, followed by the industrials and energy sectors, respectively.

Positions that contributed most significantly to the Fund’s return included Facebook, Inc. Class A, an information technology company (portfolio average weight of 3.51%), and Home Depot, Inc. (The), a consumer discretionary company (portfolio average weight of 3.35%). Positions that detracted most significantly from the Fund’s return included Boeing Co. (The), an industrials company (no longer held at fiscal year-end), and Biogen, Inc., a health care company (no longer held at fiscal year-end).

4

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

Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2016
Consumer Discretionary	33.0
Information Technology	22.3
Health Care	19.0
Consumer Staples	17.3
Financials	4.3
Industrials	2.7
Telecommunication Services	1.4
Money Market Fund Plus Other Assets Less Liabilities	0.0
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2016
Security
Amazon.com, Inc.	3.8
Bristol-Myers Squibb Co.	3.7
MasterCard, Inc., Class A	3.6
Facebook, Inc., Class A	3.5
UnitedHealth Group, Inc.	3.5
Walt Disney Co. (The)	3.5
McDonald’s Corp.	3.5
Visa, Inc., Class A	3.4
Home Depot, Inc. (The)	3.4
CVS Health Corp.	3.3
Total	35.2

* Excluding money market fund holdings.

5

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

Growth of a $10,000 Investment

Fund Performance History as of April 30, 2016

	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		3.29	%		14.43	%		49.85	%		13.33	%		86.94	%		7.88	%		113.60	%		8.06	%		137.42	%
Russell 1000® Growth Index		1.07			12.47			42.28			11.44			71.84			8.20			119.91			8.26			142.55
Fund
NAV Return		2.70			13.74			47.16			12.63			81.25			7.19			100.18			7.35			120.72
Market Price Return		2.73			13.75			47.18			12.62			81.19			7.19			100.24			7.33			120.21

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, 2017. 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 their respective 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.

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 cap companies that comprise the Index.

NYSE Group, Inc. (the “Index Provider”) compiles, maintains and calculates the Index. Strictly in accordance with its guidelines and mandated procedures, the Index Provider selects 50 large cap 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, 2016, on a market price basis, the Fund returned (2.18)%. On a net asset value (“NAV”) basis, the Fund returned (2.17)%. During the same time period, the Index returned (1.55)%. 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 (0.40)%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 690 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, 2016. The majority of the Fund’s underperformance relative to the Benchmark Index during the period can be attributed to allocation to the information technology sector.

For the fiscal year ended April 30, 2016, the utilities sector contributed most significantly to the Fund’s return, followed by the telecommunication services sector. The information technology sector detracted most significantly from the Fund’s return, followed by the financials and consumer staples sectors, respectively.

Positions that contributed most significantly to the Fund’s return included AT&T, Inc., a telecommunication services company (portfolio average weight of 3.41%), and Chubb Corporation, a financials company (no longer held at fiscal year-end). Positions that detracted most significantly from the Fund’s return included Macy’s, Inc., a consumer discretionary company (no longer held at fiscal year-end), and Procter & Gamble Co. (The), a consumer staples company (no longer held at fiscal year-end).

7

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

Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2016
Information Technology	18.0
Health Care	16.2
Financials	15.5
Energy	11.4
Utilities	11.4
Industrials	7.9
Telecommunication Services	6.4
Consumer Discretionary	5.7
Consumer Staples	4.7
Materials	2.8
Other Assets Less Liabilities	(0.0)

Top Ten Fund Holdings (% of the Fund’s Net Assets) as of April 30, 2016
Security
Chevron Corp.	3.8
International Business Machines Corp.	3.5
JPMorgan Chase & Co.	3.4
Merck & Co., Inc.	3.4
Pfizer, Inc.	3.4
Exxon Mobil Corp.	3.4
Oracle Corp.	3.4
Johnson & Johnson	3.3
AT&T, Inc.	3.3
Cisco Systems, Inc.	3.3
Total	34.2

8

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

Growth of a $10,000 Investment

Fund Performance History as of April 30, 2016

	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		(1.55	)%		8.92	%		29.23	%		11.22	%		70.22	%		8.66	%		129.53	%		9.41	%		172.90	%
Russell 1000® Value Index		(0.40	)		9.59			31.62			10.13			61.97			5.67			73.63			6.30			97.81
Fund
NAV Return		(2.17	)		8.26			26.88			10.52			64.89			7.94			114.78			8.68			153.24
Market Price Return		(2.18	)		8.23			26.78			10.50			64.76			7.94			114.70			8.67			152.81

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, 2017. 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 their respective 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

EQWS	Manager’s Analysis
	PowerShares Russell 2000 Equal Weight Portfolio (EQWS)

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.

As an index fund, the PowerShares Russell 2000 Equal Weight 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, of the Previous Index. The Fund generally will invest at least 90% of its total assets in the securities that comprise the Index and, through May 22, 2015, comprised the Previous Index.

The Index is designed to provide equal-weighted exposure to approximately 2,000 mid and small cap securities in the larger U.S. equity market. The Index generally is composed of all of the securities included in the Russell 2000^® Index, which is composed of the smallest 2,000 securities of the Russell 3000^® Index, an index designed to measure the performance of the largest 3,000 companies representing 95% of the U.S. equity market. Each quarter, Frank Russell Company (the “Index Provider”) groups each component security in the Russell 2000^® Index based on the Russell Global Sectors (“RGS”) classification system. The RGS system is composed of nine economic sectors: consumer discretionary, consumer staples, energy, financial services, health care, materials & processing, producer durables, technology and utilities. Once the component securities are grouped, the Index Provider allocates an equal weight to each sector and then assigns an equal weight to each constituent security within each sector. The Index Provider then screens each security for liquidity and capacity measures; a potential constituent will be included in the Index only if it is considered sufficiently liquid and has a sufficient number of outstanding shares readily available in the market. Unlike the Russell 2000^® Index, which employs a market cap-weighted methodology, the Index’s equal weighting methodology provides equal exposure to the smallest components and underweighted sectors of the Russell 2000^® 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, 2016, on a market price basis, the Fund returned (7.97)%. On a net asset value (“NAV”) basis, the Fund returned (8.00)%. During the same time period, the Blended-Russell 2000^® Equal Weight Index (a composite of the returns of the Previous Index through May 22, 2015, and of the Index for the remainder of the fiscal year, referred to herein as the “Blended-Index”) returned (7.78)%. During the fiscal year, the Fund fully replicated the components of the Blended-Index; therefore, the Fund’s performance, on a NAV basis, differed from

the return of the Blended-Index primarily due to fees and operating expenses that the Fund incurred during the period.

During this same time period, the Russell 2000^® Index (the “Benchmark Index”) returned (5.94)%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 1,950 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-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 consumer staples sector and most underweight in the financials sector during the fiscal year ended April 30, 2016. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to the Fund’s overweight position in the energy sector.

For the fiscal year ended April 30, 2016, the utilities sector contributed most significantly to the Fund’s return, followed by the consumer staples and telecommunication services sectors, respectively. The energy sector detracted most significantly from the Fund’s return, followed by the health care and industrials sectors, respectively.

Positions that contributed most significantly to the Fund’s return included National Beverage Corp., a consumer staples company (portfolio average weight of 0.25%), and Coeur Mining, Inc., a materials company (portfolio average weight of 0.10%). Positions that detracted most significantly from the Fund’s return included Ultra Petroleum Corp., an energy company (no longer held at fiscal year-end), and Peabody Energy Corporation, an energy company (no longer held at fiscal year-end).

10

PowerShares Russell 2000 Equal Weight Portfolio (EQWS) (continued)

Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2016
Industrials	13.5
Information Technology	13.1
Health Care	12.0
Energy	11.6
Consumer Discretionary	10.8
Financials	10.7
Consumer Staples	10.3
Materials	7.9
Utilities	6.2
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, 2016
Security
Sanchez Energy Corp.	0.3
B&G Foods, Inc.	0.3
Fairmount Santrol Holdings, Inc.	0.3
Helix Energy Solutions Group, Inc.	0.3
Natural Health Trends Corp.	0.3
EXCO Resources, Inc.	0.3
Diplomat Pharmacy, Inc.	0.3
Pioneer Energy Services Corp.	0.3
MGP Ingredients, Inc.	0.2
Parker Drilling Co.	0.2
Total	2.8

* Excluding money market fund holdings.

11

PowerShares Russell 2000 Equal Weight Portfolio (EQWS) (continued)

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

Fund Performance History as of April 30, 2016

	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			Fund Inception†
Index																Average Annualized			Cumulative
Blended-Russell 2000® Equal Weight Index††		(7.78	)%		7.19	%		23.16	%		6.97	%		40.03	%		4.44	%		50.53	%
Russell 2000® Equal Weight Index		(9.04	)		5.69			18.07			5.19			28.77			N/A			N/A
Russell 2000® Index		(5.94	)		7.53			24.33			6.98			40.11			5.45			64.79
Fund
NAV Return		(8.00	)		6.79			21.78			6.54			37.28			3.78			41.85
Market Price Return		(7.97	)		6.86			22.04			6.55			37.31			3.79			41.94

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, 2017. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.92%, including acquired fund fees and expenses of 0.02% and the net annual operating expense ratio was indicated as 0.27%. 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, Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Blended-Index, Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Blended-Index, 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, Index and Benchmark Index returns are based on the inception date of the Fund.

^††  The Blended-Russell 2000^® Equal Weight Index is comprised of the performance of the Dynamic Small Cap Intellidex^SM Index, the Fund’s underlying index from Fund inception through the conversion date, June 16, 2011, followed by the performance of the Previous Index for the period June 16, 2011 through May 22, 2015, followed by the performance of the Index for the period May 22, 2015 through April 30, 2016.

12

PXSG	Manager’s Analysis
	PowerShares Russell 2000 Pure 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.

As an index fund, the PowerShares Russell 2000 Pure 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, of the Previous Index. The Fund generally will invest at least 90% of its total assets in the securities that comprise the Index and, through May 22, 2015, comprised the Previous Index.

The Index is composed of securities selected from the Russell 2000^® Index, which is composed of the smallest 2,000 securities of the Russell 3000^® Index, an index designed to measure the performance of the largest 3,000 companies representing 95% of the U.S. equity market. Frank Russell Company (the “Index Provider”) first identifies securities in the Russell 2000^® Index with higher price-to-book ratios and higher forecasting growth values. The Index’s constituent securities are then assigned a Composite Value Score (“CVS”), which is calculated based on three characteristics (book to price (a value characteristic), sales per share growth (a growth characteristic) and medium-term growth forecast (a growth characteristic)) to identify whether they are growth or value securities. In general, stocks with lower CVS scores are considered growth stocks. The Index then weights securities in proportion to their CVS score, giving greatest weight to the securities demonstrating the most growth characteristics. 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, 2016, on a market price basis, the Fund returned (7.31)%. On a net asset value (“NAV”) basis, the Fund returned (7.47)%. During the same time period, the Blended-Russell 2000 Pure Growth Index (a composite of the returns of the Previous Index through May 22, 2015, and of the Index for the remainder of the fiscal year, referred to herein as the “Blended-Index”) returned (7.24)%. During the fiscal year, the Fund fully replicated the components of the Blended-Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Blended-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 (8.27)%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 1,180 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 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 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 consumer discretionary sector during the fiscal year ended April 30, 2016. The majority of the Fund’s outperformance relative to the Benchmark Index during that period can be attributed to these sector allocations.

For the fiscal year ended April 30, 2016, the telecommunication services sector contributed most significantly to the Fund’s return, followed by the financials sector. The health care sector detracted most significantly from the Fund’s return, followed by the consumer discretionary and energy sectors, respectively.

Positions that contributed most significantly to the Fund’s return included Hawaiian Holdings, Inc., an industrials company (portfolio average weight of 0.90%), and MaxLinear, Inc., Class A, an information technology company (portfolio average weight of 1.08%). Positions that detracted most significantly from the Fund’s return included Lannett Co., Inc., a health care company (portfolio average weight of 0.52%), and WisdomTree Investments, Inc., a financials company (portfolio average weight of 0.78%).

13

PowerShares Russell 2000 Pure Growth Portfolio (PXSG) (continued)

Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2016
Information Technology	31.3
Health Care	27.4
Industrials	14.2
Consumer Discretionary	13.2
Financials	5.9
Consumer Staples	3.3
Materials	3.0
Telecommunication Services	1.3
Energy	0.4
Money Market Funds Plus Other Assets Less Liabilities	0.0
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2016
Security
ABIOMED, Inc.	1.5
MaxLinear, Inc., Class A	1.4
Hawaiian Holdings, Inc.	1.4
NeoGenomics, Inc.	1.3
CoreSite Realty Corp. REIT	1.1
Zeltiq Aesthetics, Inc.	1.1
Clearfield, Inc.	1.1
Healthcare Services Group, Inc.	1.1
WebMD Health Corp.	1.0
Dycom Industries, Inc.	1.0
Total	12.0

* Excluding money market fund holdings.

14

PowerShares Russell 2000 Pure Growth Portfolio (PXSG) (continued)

Growth of a $10,000 Investment

Fund Performance History as of April 30, 2016

	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-Russell 2000® Pure Growth Index†		(7.24	)%		6.88	%		22.09	%		5.20	%		28.83	%		3.33	%		38.76	%		4.92	%		70.88	%
Russell 2000® Pure Growth Index		(7.26	)		N/A			N/A			N/A			N/A			N/A			N/A			N/A			N/A
Russell 2000® Growth Index		(8.27	)		8.50			27.74			7.15			41.23			6.14			81.44			7.40			121.84
Fund
NAV Return		(7.47	)		6.56			21.00			4.81			26.48			2.74			30.99			4.33			60.47
Market Price Return		(7.31	)		6.64			21.28			4.82			26.51			2.74			31.09			4.32			60.36

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, 2017. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.67%, including 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, Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Blended-Index, Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Blended-Index, 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.

^†  The Blended-Russell 2000^® Pure Growth Index is comprised of the performance of the Dynamic Small Cap Growth Intellidex^SM Index, the Fund’s underlying index from Fund inception through the conversion date, June 16, 2011, followed by the performance of the Previous Index for the period June 16, 2011 through May 22, 2015, followed by the performance of the Index for the period May 22, 2015 through April 30, 2016.

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

15

PXSV	Manager’s Analysis
	PowerShares Russell 2000 Pure 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.

As an index fund, the PowerShares Russell 2000 Pure 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, of the Previous Index. The Fund generally will invest at least 90% of its total assets in the securities that comprise the Index and, through May 22, 2015, comprised the Previous Index.

The Index is composed of securities selected from the Russell 2000^® Index, which is composed of the smallest 2,000 securities of the Russell 3000^® Index, an index designed to measure the performance of the largest 3,000 companies representing 95% of the U.S. equity market. Frank Russell Company (the “Index Provider”) first identifies securities in the Russell 2000^® Index with lower price-to-book ratios and lower forecasting growth values The Index’s constituent securities are then assigned a Composite Value Score (“CVS”), which is calculated based on three characteristics (book to price (a value characteristic), sales per share growth (a growth characteristic) and medium-term growth forecast (a growth characteristic)) to identify whether they are growth or value securities. In general, stocks with higher CVS scores are considered value stocks. The Index then weights securities in proportion to their CVS score, giving greatest weight to the securities demonstrating the most value characteristics. 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, 2016, on a market price basis, the Fund returned (4.90)%. On a net asset value (“NAV”) basis, the Fund returned (4.93)%. During the same time period, the Blended-Russell 2000 Pure Value Index (a composite of the returns of the Previous Index through May 22, 2015, and of the Index for the remainder of the fiscal year, referred to herein as the “Blended-Index”) returned (4.75)%. During the fiscal year, the Fund fully replicated the components of the Blended-Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Blended-Index primarily due to fees and operating expenses that the Fund incurred during the period, partially offset by revenue generated through the Fund’s securities lending program.

During this same time period, the Russell 2000^® Value Index (the “Benchmark Index”) returned (3.71)%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 1,320 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 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 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 industrials sector during the fiscal year ended April 30, 2016. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to the Fund’s overweight position in the energy sector.

For the fiscal year ended April 30, 2016, the financials sector contributed most significantly to the Fund’s return, followed by the utilities and information technology sectors, respectively. The energy sector detracted most significantly from the Fund’s return, followed by the consumer discretionary and industrials sectors, respectively.

Positions that contributed most significantly to the Fund’s return included Amedisys, Inc., a health care company (no longer held at fiscal year-end), and Oclaro, Inc., an information technology company (portfolio average weight of 0.34%). Positions that detracted most significantly from the Fund’s return included Republic Airways Holdings, Inc., an industrials company (no longer held at fiscal year-end), and Halcon Resources Corp., an energy company (portfolio average weight of 0.39%).

16

PowerShares Russell 2000 Pure Value Portfolio (PXSV) (continued)

Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2016
Financials	56.6
Energy	10.2
Utilities	9.7
Information Technology	7.5
Industrials	7.1
Consumer Discretionary	5.2
Telecommunication Services	2.0
Health Care	1.2
Consumer Staples	0.3
Materials	0.1
Money Market Funds Plus Other Assets Less Liabilities	0.1
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2016
Security
Callon Petroleum Co.	1.2
Gramercy Property Trust REIT	1.1
Portland General Electric Co.	1.0
ACCO Brands Corp.	1.0
ONE Gas, Inc.	0.9
Cash America International, Inc.	0.9
Avista Corp.	0.9
Flagstar Bancorp, Inc.	0.8
Checkpoint Systems, Inc.	0.8
Black Hills Corp.	0.8
Total	9.4

* Excluding money market fund holdings.

17

PowerShares Russell 2000 Pure Value Portfolio (PXSV) (continued)

Growth of a $10,000 Investment

Fund Performance History as of April 30, 2016

	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-Russell 2000® Pure Value Index†		(4.75	)%		8.87	%		29.05	%		9.09	%		54.49	%		5.62	%		72.77	%		6.33	%		98.29	%
Russell 2000® Pure Value Index		(6.19	)		N/A			N/A			N/A			N/A			N/A			N/A			N/A			N/A
Russell 2000® Value Index		(3.71	)		6.50			20.81			6.77			38.74			4.61			56.98			5.87			88.98
Fund
NAV Return		(4.93	)		8.62			28.17			8.79			52.36			5.07			63.93			5.74			86.43
Market Price Return		(4.90	)		8.68			28.36			8.78			52.33			5.08			64.11			5.73			86.29

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, 2017. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.51% 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, Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Blended-Index, Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Blended-Index, 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.

^†  The Blended-Russell 2000^® Pure Value Index is comprised of the performance of the Dynamic Small Cap Value Intellidex^SM Index, the Fund’s underlying index from Fund inception through the conversion date, June 16, 2011, followed by the performance of the Previous Index for the period June 16, 2011 through May 22, 2015, followed by the performance of the Index for the period May 22, 2015 through April 30, 2016.

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

18

EQWM	Manager’s Analysis
	PowerShares Russell Midcap Equal Weight Portfolio (EQWM)

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.

As an index fund, the PowerShares Russell Midcap Equal Weight 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, of the Previous Index. The Fund generally will invest at least 90% of its total assets in the securities that comprise the Index and, through May 22, 2015, comprised the Previous Index.

The Index is designed to provide equal-weighted exposure to approximately 800 securities of medium sized companies in the larger U.S. equity market. The Index generally is composed of all of the securities included in the Russell Midcap^® Index, which is composed of the smallest 800 securities of the Russell 1000^® Index, an index designed to measure the performance of the largest 1,000 companies in the U.S. equity market. Each quarter, Frank Russell Company (the “Index Provider”) groups each component security in the Russell Midcap^® Index based on the Russell Global Sectors (“RGS”) classification system. The RGS system is composed of nine economic sectors: consumer discretionary, consumer staples, energy, financial services, health care, materials & processing, producer durables, technology and utilities. Once the component securities are grouped, the Index Provider allocates an equal weight to each sector and then assigns an equal weight to each constituent security within each sector. The Index Provider then screens each security for liquidity and capacity measures; a potential constituent will be included in the Index only if it is considered sufficiently liquid and has a sufficient number of outstanding shares readily available in the market. Unlike the Russell Midcap^® Index, which employs a market cap-weighted methodology, the Index’s equal weighting methodology provides equal exposure to the smallest components and underweighted sectors of the Russell Midcap^® 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, 2016, on a market price basis, the Fund returned (2.14)%. On a net asset value (“NAV”) basis, the Fund returned (2.02)%. During the same time period, the Blended-Russell Midcap^® Equal Weight Index (a composite of the returns of the Previous Index through May 22, 2015, and of the Index for the remainder of the fiscal year, referred to herein as the “Blended-Index”) returned (1.83)%. During the fiscal year, the Fund fully replicated the components of the Blended-Index; therefore, the Fund’s performance, on a NAV basis, differed from

the return of the Blended-Index primarily due to fees and operating expenses that the Fund incurred during the period.

During this same time period, the Russell Midcap^® Index (the “Benchmark Index”) returned (2.14)%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 820 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-based mid 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. mid cap 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 consumer staples sector and most underweight in the financials sector during the fiscal year ended April 30, 2016, which contributed to the Fund’s outperformance.

For the fiscal year ended April 30, 2016, the utilities sector contributed most significantly to the Fund’s return, followed by the consumer staples and materials sectors, respectively. The energy sector detracted most significantly from the Fund’s return, followed by the health care and information technology sectors, respectively.

Positions that contributed most significantly to the Fund’s return included Tyson Foods, Inc. Class A, a consumer staples company (portfolio average weight of 0.32%), and Hormel Foods Corp., a consumer staples company (portfolio average weight of 0.35%). Positions that detracted most significantly from the Fund’s return included SunEdison, Inc., a semiconductors & semiconductor equipment company (no longer held at fiscal year-end), and GNC Holdings, Inc. Class A, a consumer discretionary company (portfolio average weight of 0.29%).

19

PowerShares Russell Midcap Equal Weight Portfolio (EQWM) (continued)

Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2016
Industrials	12.6
Information Technology	12.5
Energy	11.8
Health Care	11.8
Consumer Staples	10.8
Financials	10.0
Consumer Discretionary	10.0
Utilities	9.3
Materials	9.3
Telecommunication Services	1.9
Money Market Funds Plus Other Assets Less Liabilities	0.0
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2016
Security
Bunge Ltd.	0.4
Pilgrim’s Pride Corp.	0.4
Energizer Holdings, Inc.	0.4
Ingredion, Inc.	0.3
Monster Beverage Corp.	0.3
Nu Skin Enterprises, Inc., Class A	0.3
Spectrum Brands Holdings, Inc.	0.3
Mead Johnson Nutrition Co.	0.3
Coca-Cola Enterprises, Inc.	0.3
Hain Celestial Group, Inc. (The)	0.3
Total	3.3

* Excluding money market fund holdings.

20

PowerShares Russell Midcap Equal Weight Portfolio (EQWM) (continued)

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

Fund Performance History as of April 30, 2016

				3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			Fund Inception†
Index	1 Year															Average Annualized			Cumulative
Blended-Russell Midcap® Equal Weight Index††		(1.83	)%		10.40	%		34.55	%		9.34	%		56.28	%		6.36	%		78.70	%
Russell Midcap® Equal Weight Index		(2.10	)		10.19			33.79			9.71			58.94			N/A			N/A
Russell Midcap® Index		(2.14	)		10.37			34.44			9.88			60.21			7.29			93.95
Fund
NAV Return		(2.02	)		10.04			33.23			8.92			53.33			5.80			70.03
Market Price Return		(2.14	)		10.02			33.19			8.90			53.17			5.80			69.92

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, 2017. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.58% and the net annual operating expense ratio was indicated as 0.25%. 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, Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Blended-Index, Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Blended-Index, 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, Index and Benchmark Index returns are based on the inception date of the Fund.

^††  The Blended-Russell Midcap^® Equal Weight Index is comprised of the performance of the Dynamic Mid Cap Intellidex^SM Index, the Fund’s underlying index from Fund inception through the conversion date, June 16, 2011, followed by the performance of the Previous Index for the period June 16, 2011 through May 22, 2015, followed by the performance of the Index for the period May 22, 2015 through April 30, 2016.

21

PXMG	Manager’s Analysis
	PowerShares Russell Midcap Pure 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.

As an index fund, the PowerShares Russell Midcap Pure 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, of the Previous Index. The Fund generally will invest at least 90% of its total assets in the securities that comprise the Index and, through May 22, 2015, comprised the Previous Index.

The Index is composed of securities selected from the Russell Midcap^® Index, which is composed of the smallest 800 securities of the Russell 1000^® Index, an index designed to measure the performance of the largest 1,000 companies in the U.S. equity market. Frank Russell Company (the “Index Provider”) first identifies securities in the Russell Midcap^® Index with higher price-to-book ratios and higher forecasting growth values. The Index’s constituent securities are then assigned a Composite Value Score (“CVS”), which is calculated based on three characteristics (book to price (a value characteristic), sales per share growth (a growth characteristic) and medium-term growth forecast (a growth characteristic)) to identify whether they are growth or value securities. In general, stocks with lower CVS scores are considered growth stocks. The Index then weights securities in proportion to their CVS score, giving greatest weight to the securities demonstrating the most growth characteristics. 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, 2016, on a market price basis, the Fund returned (8.40)%. On a net asset value (“NAV”) basis, the Fund returned (8.34)%. During the same time period, the Blended-Russell Midcap^® Pure Growth Index (a composite of the returns of the Previous Index through May 22, 2015, and of the Index for the remainder of the fiscal year, referred to herein as the “Blended-Index”) returned (8.04)%. During the fiscal year, the Fund fully replicated the components of the Blended-Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Blended-Index primarily due to fees and operating expenses that the Fund incurred during the period.

During this same time period, the Russell Midcap^® Growth Index (the “Benchmark Index”) returned (4.13)%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 498 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 mid 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. mid cap 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 information technology sector and most underweight in the consumer staples sector during the fiscal year ended April 30, 2016. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to the Fund’s overweight position in the health care sector.

For the fiscal year ended April 30, 2016, the materials sector contributed most significantly to the Fund’s return, followed by the consumer staples and telecommunication services sectors, respectively. The health care sector detracted most significantly from the Fund’s return, followed by the information technology and energy sectors, respectively.

Positions that contributed most significantly to the Fund’s return included Edwards Lifesciences Corp., a health care company (portfolio average weight of 1.3%), and Ulta Salon, Cosmetics & Fragrance, Inc., a consumer discretionary company (portfolio average weight of 1.91%). Positions that detracted most significantly from the Fund’s return included Akorn, Inc., a health care company (portfolio average weight of 1.07%), and Tenet Healthcare Corp., a health care company (portfolio average weight of 0.93%).

22

PowerShares Russell Midcap Pure Growth Portfolio (PXMG) (continued)

Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2016
Information Technology	30.0
Consumer Discretionary	26.2
Health Care	18.5
Industrials	12.7
Financials	6.4
Materials	3.1
Consumer Staples	2.5
Energy	0.7
Money Market Funds Plus Other Assets Less Liabilities	(0.1)
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2016
Security
Ulta Salon, Cosmetics & Fragrance, Inc.	2.4
Ultimate Software Group, Inc. (The)	2.2
Six Flags Entertainment Corp.	2.2
Edwards Lifesciences Corp.	2.1
Global Payments, Inc.	2.1
Equinix, Inc. REIT	1.8
FleetCor Technologies, Inc.	1.8
Tempur Sealy International, Inc.	1.7
O’Reilly Automotive, Inc.	1.7
NetSuite, Inc.	1.7
Total	19.7

* Excluding money market fund holdings.

23

PowerShares Russell Midcap Pure Growth Portfolio (PXMG) (continued)

Growth of a $10,000 Investment

Fund Performance History as of April 30, 2016

	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-Russell Midcap® Pure Growth Index†		(8.04	)%		5.35	%		16.92	%		5.26	%		29.25	%		5.65	%		73.29	%		7.28	%		119.12	%
Russell Midcap® Pure Growth Index		(8.10	)		N/A			N/A			N/A			N/A			N/A			N/A			N/A			N/A
Russell Midcap® Growth Index		(4.13	)		10.43			34.67			9.20			55.30			7.38			103.84			8.41			146.22
Fund
NAV Return		(8.34	)		4.95			15.60			4.84			26.65			5.08			64.20			6.67			105.57
Market Price Return		(8.40	)		4.96			15.62			4.82			26.56			5.08			64.10			6.65			105.16

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, 2017. 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.

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

^†  The Blended-Russell Midcap^® Pure Growth Index is comprised of the performance of the Dynamic Mid Cap Growth Intellidex^SM Index, the Fund’s underlying index from Fund inception through the conversion date, June 16, 2011, followed by the performance of the Previous Index for the period June 16, 2011 through May 22, 2015, followed by the performance of the Index for the period May 22, 2015 through April 30, 2016.

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

24

PXMV	Manager’s Analysis
	PowerShares Russell Midcap Pure 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.

As an index fund, the PowerShares Russell Midcap Pure 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, of the Previous Index. The Fund generally will invest at least 90% of its total assets in the securities that comprise the Index and, through May 22, 2015, comprised the Previous Index.

The Index is composed of securities selected from the Russell Midcap^® Index, which is composed of the smallest 800 securities of the Russell 1000^® Index, an index designed to measure the performance of the largest 1,000 companies in the U.S. equity market. Frank Russell Company (the “Index Provider”) first identifies securities in the Russell Midcap^® Index with lower price-to-book ratios and higher forecasting growth values. The Index’s constituent securities are then assigned a Composite Value Score (“CVS”), which is calculated based on three characteristics (book to price (a value characteristic), sales per share growth (a growth characteristic) and medium-term growth forecast (a growth characteristic)) to identify whether they are growth or value securities. In general, stocks with higher CVS scores are considered value stocks. The Index then weights securities in proportion to their CVS score, giving greatest weight to the securities demonstrating the most value characteristics. 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, 2016, on a market price basis, the Fund returned 1.39%. On a net asset value (“NAV”) basis, the Fund returned 1.35%. During the same time period, the Blended-Russell Midcap^® Pure Value Index (a composite of the returns of the Previous Index through May 22, 2015, and of the Index for the remainder of the fiscal year, referred to herein as the “Blended-Index”) returned 1.70%. During the fiscal year, the Fund fully replicated the components of the Blended-Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Blended-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 (0.18)%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 560 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 mid 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. mid 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 selects and weights stocks based on market capitalization.

Relative to the Benchmark Index, the Fund was most overweight in the utilities sector and most underweight in the health care sector during the fiscal year ended April 30, 2016, which contributed to the Fund’s outperformance.

For the fiscal year ended April 30, 2016, the utilities sector contributed most significantly to the Fund’s return, followed by the financials and materials sectors, respectively. The energy sector detracted most significantly from the Fund’s return, followed by the consumer discretionary and telecommunication services sectors, respectively.

Positions that contributed most significantly to the Fund’s return included StanCorp Financial Group, Inc., a financials company (no longer held at fiscal year-end), and TECO Energy, Inc., a utilities company (portfolio average weight of 1.08%). Positions that detracted most significantly from the Fund’s return included Golar LNG Ltd., an energy company (portfolio average weight of 0.59%), and Marathon Oil Corp., an energy company (portfolio average weight of 0.68%).

25

PowerShares Russell Midcap Pure Value Portfolio (PXMV) (continued)

Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2016
Financials	41.2
Utilities	23.8
Energy	10.6
Industrials	6.5
Materials	5.5
Information Technology	4.9
Telecommunication Services	2.9
Consumer Discretionary	2.5
Consumer Staples	1.3
Health Care	0.8
Money Market Funds Plus Other Assets Less Liabilities	(0.0)
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2016
Security
M&T Bank Corp.	1.8
Orbital ATK, Inc.	1.7
White Mountains Insurance Group Ltd.	1.6
First Solar, Inc.	1.5
SCANA Corp.	1.5
Edison International	1.4
Consolidated Edison, Inc.	1.4
Newfield Exploration Co.	1.4
Hess Corp.	1.4
Cincinnati Financial Corp.	1.4
Total	15.1

* Excluding money market fund holdings.

26

PowerShares Russell Midcap Pure Value Portfolio (PXMV) (continued)

Growth of a $10,000 Investment

Fund Performance History as of April 30, 2016

	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-Russell Midcap® Pure Value Index†		1.70	%		11.46	%		38.47	%		12.25	%		78.24	%		7.04	%		97.43	%		7.82	%		131.62	%
Russell Midcap® Pure Value Index		0.52			N/A			N/A			N/A			N/A			N/A			N/A			N/A			N/A
Russell Midcap® Value Index		(0.18	)		10.26			34.03			10.45			64.40			7.35			103.34			8.32			143.88
Fund
NAV Return		1.35			11.06			37.00			11.81			74.72			6.44			86.68			7.17			116.49
Market Price Return		1.39			11.05			36.95			11.80			74.65			6.44			86.64			7.15			116.16

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, 2017. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.53%, 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, Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Blended-Index, Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Blended-Index, 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.

^†  The Blended-Russell Midcap^® Pure Value Index is comprised of the performance of the Dynamic Mid Cap Value Intellidex^SM Index, the Fund’s underlying index from Fund inception through the conversion date, June 16, 2011, followed by the performance of the Previous Index for the period June 16, 2011 through May 22, 2015, followed by the performance of the Index for the period May 22, 2015 through April 30, 2016.

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

27

EQWL	Manager’s Analysis
	PowerShares Russell Top 200 Equal Weight Portfolio (EQWL)

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.

As an index fund, the PowerShares Russell Top 200 Equal Weight 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, of the Previous Index. The Fund generally will invest at least 90% of its total assets in the securities that comprise the Index and, through May 22, 2015, comprised the Previous Index.

The Index is designed to provide equal-weighted exposure to the securities of the largest 200 companies in the U.S. equity market. The Index generally is composed of all of the securities included in the Russell Top 200^® Index, which is composed of the largest 200 securities of the Russell 3000^® Index, an index designed to measure the performance of the largest 3,000 companies representing 95% of the U.S. equity market. Each quarter, Frank Russell Company (the “Index Provider”) groups each component security in the Russell Top 200^® Index based on the Russell Global Sectors (“RGS”) classification system. The RGS system is composed of nine economic sectors: consumer discretionary, consumer staples, energy, financial services, health care, materials & processing, producer durables, technology and utilities. Once the component securities are grouped, the Index Provider allocates an equal weight to each sector and then assigns an equal weight to each constituent security within each sector. The Index Provider then screens each security for liquidity and capacity measures; a potential constituent will be included in the Index only if it is considered sufficiently liquid and has a sufficient number of outstanding shares readily available in the market. Unlike the Russell Top 200^® Index, which employs a market cap-weighted methodology, the Index’s equal weighting methodology provides equal exposure to the smallest components and underweighted sectors of the Russell Top 200^® 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, 2016, on a market price basis, the Fund returned 0.78%. On a net asset value (“NAV”) basis, the Fund returned 0.81%. During the same time period, the Blended-Russell Top 200^® Equal Weight Index (a composite of the returns of the Previous Index through May 22, 2015, and of the Index for the remainder of the fiscal year, referred to herein as the “Blended-Index”) returned 1.06%. During the fiscal year, the Fund fully replicated the components of the Blended-Index; therefore, the Fund’s performance, on a NAV

basis, differed from the return of the Blended-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 0.34%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 1,020 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 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 cap 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 industrials sector and most underweight in the information technology sector during the fiscal year ended April 30, 2016, which both contributed to the Fund’s outperformance.

For the fiscal year ended April 30, 2016, the consumer staples sector contributed most significantly to the Fund’s return, followed by the industrials and utilities sectors, respectively. The energy sector detracted most significantly from the Fund’s return, followed by the health care and financials sectors, respectively.

Positions that contributed most significantly to the Fund’s return included UnitedHealth Group, Inc., a health care company (portfolio average weight of 0.66%), and Chemours Co. (The), a materials company (portfolio average weight of 0.28%). Positions that detracted most significantly from the Fund’s return included Micron Technology, Inc., an information technology company (portfolio average weight of 0.44%), and Williams Cos., Inc. (The), an energy company (portfolio average weight of 0.44%).

28

PowerShares Russell Top 200 Equal Weight Portfolio (EQWL) (continued)

Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2016
Health Care	16.2
Financials	15.8
Consumer Discretionary	14.0
Information Technology	13.7
Industrials	12.1
Energy	9.2
Consumer Staples	8.8
Materials	5.2
Utilities	3.4
Telecommunication Services	1.5
Money Market Fund Plus Other Assets Less Liabilities	0.1
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2016
Security
Devon Energy Corp.	0.7
Chemours Co. (The)	0.6
Williams Cos., Inc. (The)	0.6
ConocoPhillips	0.6
Halliburton Co.	0.6
Anadarko Petroleum Corp.	0.6
Bristol-Myers Squibb Co.	0.6
Discover Financial Services	0.6
Amazon.com, Inc.	0.5
Occidental Petroleum Corp.	0.5
Total	5.9

* Excluding money market fund holdings.

29

PowerShares Russell Top 200 Equal Weight Portfolio (EQWL) (continued)

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

Fund Performance History as of April 30, 2016

	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			Fund Inception†
Index																Average Annualized			Cumulative
Blended-Russell Top 200® Equal Weight Index††		1.06	%		11.07	%		37.02	%		11.27	%		70.58	%		7.35	%		94.90	%
Russell Top 200® Equal Weight Index		0.10			N/A			N/A			N/A			N/A			N/A			N/A
Russell 1000® Index		0.34			11.06			36.98			10.81			67.09			6.61			82.71
Fund
NAV Return		0.81			10.68			35.57			10.85			67.36			6.77			85.30
Market Price Return		0.78			10.63			35.39			10.82			67.18			6.75			84.97

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, 2017. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.49% and the net annual operating expense ratio was indicated as 0.25%. 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, Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Blended-Index, Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Blended-Index, 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, Index and Benchmark Index returns are based on the inception date of the Fund.

^††  The Blended-Russell Top 200^® Equal Weight Index is comprised of the performance of the Dynamic Large Cap Intellidex^SM Index, the Fund’s underlying index from Fund inception through the conversion date, June 16, 2011, followed by the performance of the Previous Index for the period June 16, 2011 through May 22, 2015, followed by the performance of the Index for the period May 22, 2015 through April 30, 2016.

30

PXLG	Manager’s Analysis
	PowerShares Russell Top 200 Pure 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.

As an index fund, the PowerShares Russell Top 200 Pure 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, of the Previous Index. The Fund generally will invest at least 90% of its total assets in the securities that comprise the Index and, through May 22, 2015, comprised the Previous Index.

The Index is composed of securities selected from the Russell Top 200^® Index, which is composed of the largest 200 securities of the Russell 3000^® Index, an index designed to measure the performance of 95% of the U.S. equity market. Frank Russell Company (the “Index Provider”) first identifies securities in the Russell Top 200^® Index with higher price-to-book ratios and higher forecasting growth values. The Index’s constituent securities are then assigned a Composite Value Score (“CVS”), which is calculated based on three characteristics (book to price (a value characteristic), sales per share growth (a growth characteristic) and medium-term growth forecast (a growth characteristic)) to identify whether they are growth or value securities. In general, stocks with lower CVS scores are considered growth stocks. The Index then weights securities in proportion to their CVS score, giving greatest weight to the securities demonstrating the most growth characteristics. 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, 2016, on a market price basis, the Fund returned (1.83)%. On a net asset value (“NAV”) basis, the Fund returned (1.89)%. During the same time period, the Blended-Russell Top 200^® Pure Growth Index (a composite of the returns of the Previous Index through May 22, 2015, and of the Index for the remainder of the fiscal year, referred to herein as the “Blended-Index”) returned (1.51)%. During the fiscal year, the Fund fully replicated the components of the Blended-Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Blended-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 1.07%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 635 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 cap 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 consumer discretionary sector and most underweight in the industrials sector during the fiscal year ended April 30, 2016. The majority of the Fund’s underperformance relative to the Benchmark Index during the period can be attributed to the Fund’s overweight position in the health care sector.

For the fiscal year ended April 30, 2016, the consumer discretionary sector contributed most significantly to the Fund’s return, followed by the information technology and financials sectors, respectively. The health care sector detracted most significantly from the Fund’s return, followed by the energy and industrials sectors, respectively.

Positions that contributed most significantly to the Fund’s return included Facebook, Inc. Class A, an information technology company (portfolio average weight of 2.87%), and Amazon.com, Inc., a consumer discretionary company (portfolio average weight of 2.85%). Positions that detracted most significantly from the Fund’s return included Illumina, Inc., a health care company (portfolio average weight of 2.30%), and Regeneron Pharmaceuticals, Inc., a health care company (portfolio average weight of 3.08%).

31

PowerShares Russell Top 200 Pure Growth Portfolio (PXLG) (continued)

Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2016
Consumer Discretionary	31.5
Information Technology	26.5
Health Care	20.9
Consumer Staples	6.4
Materials	5.3
Financials	4.6
Industrials	4.5
Energy	0.3
Money Market Fund Plus Other Assets Less Liabilities	0.0
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2016
Security
Priceline Group, Inc. (The)	3.7
Facebook, Inc., Class A	3.7
American Tower Corp. REIT	3.6
salesforce.com, inc.	3.4
MasterCard, Inc., Class A	3.4
Amazon.com, Inc.	3.4
Visa, Inc., Class A	3.2
Tesla Motors, Inc.	3.2
Lowe’s Cos., Inc.	3.0
Celgene Corp.	2.9
Total	33.5

* Excluding money market fund holdings.

32

PowerShares Russell Top 200 Pure Growth Portfolio (PXLG) (continued)

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

Fund Performance History as of April 30, 2016

	1 Year			3 Years Average Annualized			3 Years Cumulative			Fund Inception†
Index										Average Annualized			Cumulative
Blended-Russell Top 200® Pure Growth Index††		(1.51	)%		11.72	%		39.44	%		13.27	%		83.54	%
Russell Top 200® Pure Growth Index		0.34			N/A			N/A			N/A			N/A
Russell 1000® Growth Index		1.07			12.47			42.28			13.46			85.02
Fund
NAV Return		(1.89	)		11.27			37.77			12.83			80.11
Market Price Return		(1.83	)		11.30			37.88			12.85			80.28

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, 2017. According to the Fund’s current prospectus, the total gross 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, Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Blended-Index, Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Blended-Index, 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, Index and Benchmark Index returns are based on the inception date of the Fund.

^††  The Blended-Russell Top 200^® Pure Growth Index performance is comprised of the performance of the Previous Index, from Fund inception through the conversion date, May 22, 2015, followed by the performance of the Index starting from the conversion date through April 30, 2016.

33

PXLV	Manager’s Analysis
	PowerShares Russell Top 200 Pure 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.

As an index fund, the PowerShares Russell Top 200 Pure 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, of the Previous Index. The Fund generally will invest at least 90% of its total assets in the securities that comprise the Index and, through May 22, 2015, comprised the Previous Index.

The Index is composed of securities selected from the Russell Top 200^® Index, which includes the largest 200 securities of the Russell 3000^® Index, an index measuring the performance of 95% of the U.S. equity market. Frank Russell Company (the “Index Provider”) first identifies securities in the Russell Top 200^® Index with lower price-to-book ratios and lower forecasting growth values. The Index’s constituent securities are then assigned a Composite Value Score (“CVS”), which is calculated based on three characteristics (book to price (a value characteristic), sales per share growth (a growth characteristic) and medium-term growth forecast (a growth characteristic)) to identify whether they are growth or value securities. In general, stocks with higher CVS scores are considered value stocks. The Index then weights securities in proportion to their CVS score, giving greatest weight to the securities demonstrating the most value characteristics. 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, 2016, on a market price basis, the Fund returned (0.92)%. On a net asset value (“NAV”) basis, the Fund returned (0.84)%. During the same time period, the Blended-Russell Top 200^® Pure Value Index (a composite of the returns of the Previous Index through May 22, 2015, and of the Index for the remainder of the fiscal year, referred to herein as the “Blended-Index”) returned (0.53)%. During the fiscal year, the Fund fully replicated the components of the Blended-Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Blended-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 (0.40)%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 690 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 cap 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 utilities sector and most underweight in the health care sector during the fiscal year ended April 30, 2016. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to fees and operating expenses incurred by the Fund as well as the Fund’s overweight position in the energy sector.

For the fiscal year ended April 30, 2016, the utilities sector contributed most significantly to the Fund’s return, followed by the industrials and health care sectors, respectively. The energy sector detracted most significantly from the Fund’s return, followed by the financials and information technology sectors, respectively.

Positions that contributed most significantly to the Fund’s return included General Electric Co., an industrials company (portfolio average weight of 3.44%), and Southern Co. (The), a utilities company (portfolio average weight of 2.62%). Positions that detracted most significantly from the Fund’s return included ConocoPhillips, an energy company (portfolio average weight of 2.41%), and Devon Energy Corp., an energy company (portfolio average weight of 0.67%).

34

PowerShares Russell Top 200 Pure Value Portfolio (PXLV) (continued)

Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2016
Financials	36.2
Energy	20.7
Utilities	16.1
Information Technology	7.0
Industrials	6.6
Consumer Staples	5.2
Consumer Discretionary	3.2
Telecommunication Services	2.9
Health Care	2.1
Money Market Fund Plus Other Assets Less Liabilities	0.0
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2016
Security
General Electric Co.	3.5
Chubb Ltd.	3.3
Apache Corp.	3.2
Occidental Petroleum Corp.	3.2
American Electric Power Co., Inc.	3.2
Duke Energy Corp.	3.1
Yahoo!, Inc.	3.1
Southern Co. (The)	3.0
PNC Financial Services Group, Inc. (The)	2.9
Chevron Corp.	2.8
Total	31.3

* Excluding money market fund holdings.

35

PowerShares Russell Top 200 Pure Value Portfolio (PXLV) (continued)

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

Fund Performance History as of April 30, 2016

	1 Year			3 Years Average Annualized			3 Years Cumulative			Fund Inception†
Index										Average Annualized			Cumulative
Blended-Russell Top 200® Pure Value Index††		(0.53	)%		8.33	%		27.12	%		11.55	%		70.29	%
Russell Top 200® Pure Value Index		(1.31	)		N/A			N/A			N/A			N/A
Russell 1000® Value Index		(0.40	)		9.59			31.62			11.95			73.34
Fund
NAV Return		(0.84	)		7.96			25.83			11.13			67.27
Market Price Return		(0.92	)		7.92			25.70			11.14			67.36

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, 2017. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.58% 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, Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Blended-Index, Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Blended-Index, 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, Index and Benchmark Index returns are based on the inception date of the Fund.

^††  The Blended-Russell Top 200^® Pure Value Index performance is comprised of the performance of the Previous Index, from Fund inception through the conversion date, May 22, 2015, followed by the performance of the Index starting from the conversion date through April 30, 2016.

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 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, 2016, on a market price basis, the Fund returned (1.82)%. On a net asset value (“NAV”) basis, the Fund returned (1.94)%. During the same time period, the Index returned (0.96)%. 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 as well as the impact of trading costs associated with the quarterly rebalance.

During this same time period, the Russell Microcap^® Index (the “Benchmark Index”) returned (8.08)%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 1,625 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 similar 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, 2016. The majority of the Fund’s outperformance relative to the Benchmark Index during that period can be attributed to stock selection within the health care, materials, and energy sectors.

For the fiscal year ended April 30, 2016, the materials sector contributed most significantly to the Fund’s return, followed by the financials and consumer staples sectors, respectively. The health care sector detracted most significantly from the Fund’s return, followed by the consumer discretionary and industrials sectors, respectively.

Positions that contributed most significantly to the Fund’s return included Coeur Mining, Inc., a materials company (portfolio average weight of 0.11%), and First Majestic Silver Corp., a materials company (portfolio average weight of 0.11%). Positions that detracted most significantly from the Fund’s return included Blucora, Inc., an information technology company (no longer held at fiscal year-end), and TravelCenters of America LLC, a consumer discretionary company (no longer held at fiscal year-end).

37

PowerShares Zacks Micro Cap Portfolio (PZI) (continued)

Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2016
Financials	48.8
Industrials	10.7
Consumer Discretionary	10.4
Energy	8.8
Information Technology	7.1
Materials	6.0
Health Care	3.3
Consumer Staples	2.2
Utilities	1.7
Telecommunication Services	1.0
Pharmaceuticals	0.0
Money Market Funds Plus Other Assets Less Liabilities	0.0

Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2016
Security
Silver Standard Resources, Inc.	0.4
Fortuna Silver Mines, Inc.	0.4
First Majestic Silver Corp.	0.4
IAMGOLD Corp.	0.4
Pretium Resources, Inc.	0.4
Asanko Gold, Inc.	0.4
Parker Drilling Co.	0.4
Coeur Mining, Inc.	0.3
Alliance One International, Inc.	0.3
Richmont Mines, Inc.	0.3
Total	3.7

* Excluding money market fund holdings.

38

PowerShares Zacks Micro Cap Portfolio (PZI) (continued)

Growth of a $10,000 Investment

Fund Performance History as of April 30, 2016

	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
Zacks Micro Cap Index™		(0.96	)%		6.93	%		22.28	%		6.81	%		39.02	%		0.81	%		8.39	%		2.39	%		28.78	%
Russell Microcap® Index		(8.08	)		7.49			24.20			6.97			40.04			3.56			41.92			4.96			67.91
Fund
NAV Return		(1.94	)		6.13			19.55			5.97			33.63			(0.04	)		(0.42	)		1.53			17.70
Market Price Return		(1.82	)		6.21			19.81			5.99			33.75			(0.04	)		(0.41	)		1.52			17.55

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, 2017. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 1.14%, including acquired fund fees and expenses of 0.24% and the net annual operating expense ratio was indicated as 0.94%. 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 their respective 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.

39

Schedule of Investments^(a)

PowerShares Dynamic Large Cap Growth Portfolio (PWB)

April 30, 2016

Number of Shares			Value
		Common Stocks—100.0%
		Consumer Discretionary—33.0%
	25,643	Amazon.com, Inc.(b)	$	16,913,866
	7,807	AutoZone, Inc.(b)		5,974,151
	126,230	Carnival Corp.		6,191,581
	80,268	Dollar General Corp.		6,574,752
	112,768	Home Depot, Inc. (The)		15,098,508
	88,307	Lowe’s Cos., Inc.		6,713,098
	89,537	Marriott International, Inc., Class A		6,275,648
	121,630	McDonald’s Corp.		15,384,979
	227,444	NIKE, Inc., Class B		13,405,549
	23,209	O’Reilly Automotive, Inc.(b)		6,096,540
	4,865	Priceline Group, Inc. (The)(b)		6,536,906
	108,403	Ross Stores, Inc.		6,155,122
	244,051	Starbucks Corp.		13,722,988
	80,671	TJX Cos., Inc. (The)		6,116,475
	149,387	Walt Disney Co. (The)		15,425,702
				146,585,865
		Consumer Staples—17.3%
	60,952	Brown-Forman Corp., Class B		5,870,897
	47,740	Clorox Co. (The)		5,978,480
	42,956	Constellation Brands, Inc., Class A		6,703,713
	40,767	Costco Wholesale Corp.		6,038,816
	145,791	CVS Health Corp.		14,651,995
	66,197	Dr Pepper Snapple Group, Inc.		6,017,969
	66,479	Estee Lauder Cos., Inc. (The), Class A		6,373,342
	142,005	Hormel Foods Corp.		5,474,293
	154,677	Kroger Co. (The)		5,474,019
	178,937	Walgreens Boots Alliance, Inc.		14,186,125
				76,769,649
		Financials—4.3%
	239,670	Charles Schwab Corp. (The)		6,809,025
	65,493	CME Group, Inc., Class A		6,019,461
	25,432	Intercontinental Exchange, Inc.		6,104,443
				18,932,929
		Health Care—19.0%
	69,705	AmerisourceBergen Corp.		5,931,896
	228,724	Bristol-Myers Squibb Co.		16,509,298
	73,491	Cardinal Health, Inc.		5,766,104
	43,201	Cigna Corp.		5,985,067
	69,397	Edwards Lifesciences Corp.(b)		7,370,655
	193,452	Eli Lilly & Co.		14,611,430
	34,145	Humana, Inc.		6,046,055
	10,753	Intuitive Surgical, Inc.(b)		6,735,249
	117,349	UnitedHealth Group, Inc.		15,452,516
				84,408,270
		Industrials—2.7%
	127,498	Delta Air Lines, Inc.		5,312,842
	144,700	Southwest Airlines Co.		6,455,067
				11,767,909
		Information Technology—22.3%
	191,344	Activision Blizzard, Inc.		6,595,628
	19,643	Alphabet, Inc., Class A(b)		13,904,887
	45,841	Broadcom Ltd. (Singapore)		6,681,326
	94,678	Electronic Arts, Inc.(b)		5,855,834
	131,931	Facebook, Inc., Class A(b)		15,512,447

Number of Shares			Value
		Common Stocks (continued)
		Information Technology (continued)
	62,278	Fiserv, Inc.(b)	$	6,085,806
	63,729	Intuit, Inc.		6,429,619
	162,591	MasterCard, Inc., Class A		15,769,701
	192,614	NVIDIA Corp.		6,843,575
	195,765	Visa, Inc., Class A		15,120,889
				98,799,712
		Telecommunication Services—1.4%
	162,850	T-Mobile US, Inc.(b)		6,396,748
		Total Common Stocks (Cost $407,627,522)		443,661,082
		Money Market Fund—0.0%
	52,887	Invesco Premier Portfolio—Institutional Class, 0.39%(c) (Cost $52,887)		52,887
		Total Investments (Cost $407,680,409)—100.0%		443,713,969
		Other assets less liabilities—0.0%		37,899
		Net Assets—100.0%	$	443,751,868

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. The rate shown is the 7-day SEC standardized yield as of April 30, 2016.

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, 2016

Number of Shares			Value
		Common Stocks—100.0%
		Consumer Discretionary—5.7%
	1,051,541	Ford Motor Co.	$	14,258,896
	442,546	General Motors Co.		14,072,963
	168,956	Omnicom Group, Inc.		14,018,279
	167,192	Target Corp.		13,291,764
				55,641,902
		Consumer Staples—4.7%
	376,908	Archer-Daniels-Midland Co.		15,053,705
	460,025	Wal-Mart Stores, Inc.		30,761,872
				45,815,577
		Energy—11.4%
	362,729	Chevron Corp.		37,063,649
	374,267	Exxon Mobil Corp.		33,085,203
	383,185	Marathon Petroleum Corp.		14,974,870
	165,773	Phillips 66		13,611,621
	219,791	Valero Energy Corp.		12,939,096
				111,674,439
		Financials—15.5%
	217,928	Aflac, Inc.		15,030,494
	203,866	Allstate Corp. (The)		13,261,483
	256,658	American International Group, Inc.		14,326,650
	306,155	Hartford Financial Services Group, Inc. (The)		13,587,159
	531,741	JPMorgan Chase & Co.		33,606,031
	379,640	SunTrust Banks, Inc.		15,846,174
	120,900	Travelers Cos., Inc. (The)		13,286,910
	636,496	Wells Fargo & Co.		31,812,070
				150,756,971
		Health Care—16.2%
	98,964	Anthem, Inc.		13,931,162
	347,294	Gilead Sciences, Inc.		30,634,804
	186,159	HCA Holdings, Inc.(b)		15,008,138
	289,245	Johnson & Johnson		32,418,580
	604,189	Merck & Co., Inc.		33,133,725
	1,012,118	Pfizer, Inc.		33,106,380
				158,232,789
		Industrials—7.9%
	320,838	American Airlines Group, Inc.		11,129,870
	95,639	General Dynamics Corp.		13,439,192
	138,125	Illinois Tool Works, Inc.		14,436,825
	105,340	Raytheon Co.		13,309,709
	231,751	United Continental Holdings, Inc.(b)		10,616,513
	233,987	Waste Management, Inc.		13,756,096
				76,688,205
		Information Technology—18.0%
	690,140	Applied Materials, Inc.		14,127,166
	1,158,515	Cisco Systems, Inc.		31,847,577
	975,647	Hewlett Packard Enterprise Co.		16,254,279
	1,232,400	HP, Inc.		15,121,548
	1,026,719	Intel Corp.		31,089,051
	231,733	International Business Machines Corp.		33,819,114
	827,818	Oracle Corp.		32,996,826
				175,255,561

Number of Shares			Value
		Common Stocks (continued)
		Materials—2.8%
	269,035	Dow Chemical Co. (The)	$	14,153,932
	163,557	LyondellBasell Industries NV, Class A		13,521,257
				27,675,189
		Telecommunication Services—6.4%
	824,032	AT&T, Inc.		31,988,922
	599,689	Verizon Communications, Inc.		30,548,158
				62,537,080
		Utilities—11.4%
	213,321	American Electric Power Co., Inc.		13,545,884
	186,392	Consolidated Edison, Inc.		13,904,843
	194,956	Edison International		13,785,339
	413,259	Exelon Corp.		14,501,258
	376,590	PPL Corp.		14,174,848
	308,173	Public Service Enterprise Group, Inc.		14,216,020
	272,102	Southern Co. (The)		13,632,310
	333,911	Xcel Energy, Inc.		13,366,457
				111,126,959
		Total Investments (Cost $926,973,220)—100.0%		975,404,672
		Other assets less liabilities—(0.0)%		(105,850	)
		Net Assets—100.0%	$	975,298,822

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 Russell 2000 Equal Weight Portfolio (EQWS)

April 30, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—10.8%
	622	1-800-FLOWERS.COM, Inc., Class A(b)	$	4,883
	216	2U, Inc.(b)		6,054
	147	Abercrombie & Fitch Co., Class A		3,929
	161	AMC Entertainment Holdings, Inc., Class A		4,537
	313	American Axle & Manufacturing Holdings, Inc.(b)		4,855
	284	American Eagle Outfitters, Inc.		4,064
	230	American Public Education, Inc.(b)		5,327
	120	America’s Car-Mart, Inc.(b)		3,188
	589	Apollo Education Group, Inc., Class A(b)		4,594
	281	Arctic Cat, Inc.		4,673
	78	Asbury Automotive Group, Inc.(b)		4,728
	451	Ascena Retail Group, Inc.(b)		3,973
	436	Ascent Capital Group, Inc., Series A(b)		6,571
	487	Barnes & Noble Education, Inc.(b)		4,558
	383	Barnes & Noble, Inc.		4,500
	146	Bassett Furniture Industries, Inc.		4,308
	562	Beazer Homes USA, Inc.(b)		4,620
	503	Belmond Ltd., Class A (United Kingdom)(b)		4,607
	422	Big 5 Sporting Goods Corp.		5,102
	103	Big Lots, Inc.		4,724
	15	Biglari Holdings, Inc.(b)		5,609
	111	BJ’s Restaurants, Inc.(b)		4,951
	1,031	Black Diamond, Inc.(b)		4,382
	286	Bloomin’ Brands, Inc.		5,348
	184	Blue Nile, Inc.		4,744
	103	Bob Evans Farms, Inc.		4,691
	287	Bojangles’, Inc.(b)		5,060
	502	Boot Barn Holdings, Inc.(b)		4,116
	235	Boyd Gaming Corp.(b)		4,380
	605	Bravo Brio Restaurant Group, Inc.(b)		4,459
	453	Bridgepoint Education, Inc.(b)		4,322
	74	Bright Horizons Family Solutions, Inc.(b)		4,856
	138	Buckle, Inc. (The)		3,994
	31	Buffalo Wild Wings, Inc.(b)		4,143
	366	Build-A-Bear Workshop, Inc.(b)		4,820
	84	Burlington Stores, Inc.(b)		4,785
	797	Caesars Acquisition Co., Class A(b)		6,033
	724	Caesars Entertainment Corp.(b)		4,945
	144	CalAtlantic Group, Inc.		4,661
	168	Caleres, Inc.		4,235
	517	Callaway Golf Co.		4,829
	1,052	Cambium Learning Group, Inc.(b)		4,787
	90	Capella Education Co.		4,978
	1,077	Career Education Corp.(b)		5,751
	153	Carmike Cinemas, Inc.(b)		4,588
	223	Carriage Services, Inc.		5,448
	341	Carrols Restaurant Group, Inc.(b)		4,743
	122	Cato Corp. (The), Class A		4,464
	51	Cavco Industries, Inc.(b)		4,472
	1,837	Central European Media Enterprises Ltd., Class A (Bermuda)(b)		4,886
	290	Century Communities, Inc.(b)		5,000
	90	Cheesecake Factory, Inc. (The)		4,591
	1,069	Chegg, Inc.(b)		4,853
	261	Cherokee, Inc.(b)		4,082
	367	Chico’s FAS, Inc.		4,628

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Discretionary (continued)
	57	Children’s Place, Inc. (The)	$	4,441
	1,954	Christopher & Banks Corp.(b)		5,080
	32	Churchill Downs, Inc.		4,294
	151	Chuy’s Holdings, Inc.(b)		4,612
	264	Citi Trends, Inc.		4,741
	348	ClubCorp Holdings, Inc.		4,646
	305	Collectors Universe, Inc.		5,304
	77	Columbia Sportswear Co.		4,510
	296	Conn’s, Inc.(b)		4,067
	765	Container Store Group, Inc. (The)(b)		5,432
	130	Cooper Tire & Rubber Co.		4,490
	65	Cooper-Standard Holding, Inc.(b)		5,012
	410	Core-Mark Holding Co., Inc.		33,481
	31	Cracker Barrel Old Country Store, Inc.		4,539
	524	Crocs, Inc.(b)		4,375
	908	Crown Media Holdings, Inc., Class A(b)		4,604
	169	CSS Industries, Inc.		4,725
	513	Culp, Inc.		13,461
	9,261	Cumulus Media, Inc., Class A(b)		3,441
	24	Daily Journal Corp.(b)		4,714
	341	Dana Holding Corp.		4,409
	121	Dave & Buster’s Entertainment, Inc.(b)		4,683
	81	Deckers Outdoor Corp.(b)		4,683
	290	Del Frisco’s Restaurant Group, Inc.(b)		4,620
	463	Denny’s Corp.(b)		4,579
	928	Destination XL Group, Inc.(b)		4,983
	255	DeVry Education Group, Inc.		4,424
	200	Diamond Resorts International, Inc.(b)		4,242
	51	DineEquity, Inc.		4,386
	87	Dorman Products, Inc.(b)		4,680
	187	DreamWorks Animation SKG, Inc., Class A(b)		7,465
	74	Drew Industries, Inc.		4,797
	243	Duluth Holdings, Inc., Class B(b)		5,781
	288	E.W. Scripps Co. (The), Class A(b)		4,372
	374	El Pollo Loco Holdings, Inc.(b)		4,933
	421	Eldorado Resorts, Inc.(b)		5,519
	358	Empire Resorts, Inc.(b)		5,954
	442	Entercom Communications Corp., Class A(b)		5,012
	639	Entravision Communications Corp., Class A		5,080
	409	Eros International PLC, Class A(b)		5,472
	389	Escalade, Inc.		4,641
	150	Ethan Allen Interiors, Inc.		5,106
	532	Etsy, Inc.(b)		4,671
	4,673	EVINE Live, Inc.(b)		7,196
	223	Express, Inc.(b)		4,054
	508	Federal-Mogul Holdings Corp.(b)		4,694
	1,036	Fenix Parts, Inc.(b)		5,221
	148	Fiesta Restaurant Group, Inc.(b)		4,752
	216	Finish Line, Inc. (The), Class A		4,266
	113	Five Below, Inc.(b)		4,712
	106	Flexsteel Industries, Inc.		4,334
	300	Fogo de Chao, Inc.(b)		5,007
	291	Fox Factory Holding Corp.(b)		5,037
	255	Francesca’s Holdings Corp.(b)		4,233
	322	Fred’s, Inc., Class A		4,724
	180	FTD Cos., Inc.(b)		5,006

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

42

PowerShares Russell 2000 Equal Weight Portfolio (EQWS) (continued)

April 30, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Discretionary (continued)
	66	Genesco, Inc.(b)	$	4,566
	116	Gentherm, Inc.(b)		4,262
	101	G-III Apparel Group Ltd.(b)		4,570
	640	Global Eagle Entertainment, Inc.(b)		5,126
	111	Grand Canyon Education, Inc.(b)		4,854
	402	Gray Television, Inc.(b)		5,166
	3,180	Green Brick Partners, Inc.(b)		23,437
	80	Group 1 Automotive, Inc.		5,267
	252	Guess?, Inc.		4,624
	256	Habit Restaurants, Inc. (The), Class A(b)		4,288
	1,795	Harte-Hanks, Inc.		3,267
	222	Haverty Furniture Cos., Inc.		4,145
	45	Helen of Troy Ltd.(b)		4,479
	352	Hemisphere Media Group, Inc., Class A(b)		4,210
	129	Hibbett Sports, Inc.(b)		4,657
	141	Hooker Furniture Corp.		3,497
	385	Horizon Global Corp.(b)		4,724
	240	Houghton Mifflin Harcourt Co.(b)		4,922
	3,172	Hovnanian Enterprises, Inc., Class A(b)		5,297
	87	HSN, Inc.		4,614
	569	Iconix Brand Group, Inc.(b)		4,825
	152	IMAX Corp.(b)		4,864
	496	Installed Building Products, Inc.(b)		13,184
	127	International Speedway Corp., Class A		4,253
	334	Interval Leisure Group, Inc., Class W		4,716
	586	Intrawest Resorts Holdings, Inc.(b)		5,063
	151	iRobot Corp.(b)		5,644
	337	Isle of Capri Casinos, Inc.(b)		5,021
	480	J. Alexander’s Holdings, Inc.(b)		4,944
	74	Jack in the Box, Inc.		4,999
	672	JAKKS Pacific, Inc.(b)		5,040
	385	Jamba, Inc.(b)		5,001
	211	Johnson Outdoors, Inc., Class A		5,091
	485	K12, Inc.(b)		5,961
	336	KB Home		4,560
	275	Kirkland’s, Inc.		4,516
	380	Kona Grill, Inc.(b)		5,062
	308	Krispy Kreme Doughnuts, Inc.(b)		5,362
	385	La Quinta Holdings, Inc.(b)		4,916
	173	Lands’ End, Inc.(b)		4,209
	180	La-Z-Boy, Inc.		4,657
	199	LGI Homes, Inc.(b)		5,574
	253	Libbey, Inc.		4,706
	247	Liberty Tax, Inc., Class A		2,952
	226	Liberty TripAdvisor Holdings, Inc., Series A(b)		4,986
	401	LifeLock, Inc.(b)		4,668
	350	Lifetime Brands, Inc.		6,045
	53	Lithia Motors, Inc., Class A		4,400
	145	Loral Space & Communications, Inc.(b)		5,319
	365	Lumber Liquidators Holdings, Inc.(b)		5,442
	257	M/I Homes, Inc.(b)		5,166
	308	Malibu Boats, Inc., Class A(b)		5,421
	241	Marcus Corp. (The)		4,663
	633	Marine Products Corp.		5,184
	246	MarineMax, Inc.(b)		4,676
	71	Marriott Vacations Worldwide Corp.		4,447

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Discretionary (continued)
	111	Mattress Firm Holding Corp.(b)	$	4,331
	342	MCBC Holdings, Inc.(b)		4,590
	192	MDC Holdings, Inc.		4,725
	204	MDC Partners, Inc., Class A		4,129
	285	Media General, Inc.(b)		4,939
	99	Meredith Corp.		5,080
	132	Meritage Homes Corp.(b)		4,492
	299	Metaldyne Performance Group, Inc.		4,763
	545	Modine Manufacturing Co.(b)		5,891
	242	Monarch Casino & Resort, Inc.(b)		4,598
	65	Monro Muffler Brake, Inc.		4,499
	125	Motorcar Parts of America, Inc.(b)		4,009
	155	Movado Group, Inc.		4,373
	102	NACCO Industries, Inc., Class A		6,071
	318	National CineMedia, Inc.		4,516
	247	Nautilus, Inc.(b)		4,357
	414	New Home Co., Inc. (The)(b)		4,608
	283	New Media Investment Group, Inc.		4,542
	370	New York Times Co. (The), Class A		4,743
	106	Nexstar Broadcasting Group, Inc., Class A		5,441
	397	Noodles & Co., Class A(b)		4,427
	239	Nutrisystem, Inc.		5,263
	206	Ollie’s Bargain Outlet Holdings, Inc.(b)		5,449
	128	Outerwall, Inc.		5,288
	323	Overstock.com, Inc.(b)		4,713
	68	Oxford Industries, Inc.		4,517
	85	Papa John’s International, Inc.		4,810
	428	Papa Murphy’s Holdings, Inc.(b)		5,376
	325	Party City Holdco, Inc.(b)		4,657
	305	Penn National Gaming, Inc.(b)		4,920
	1,494	Performance Sports Group Ltd.(b)		5,543
	250	Perry Ellis International, Inc.(b)		4,763
	1,785	PetMed Express, Inc.		32,666
	708	Pier 1 Imports, Inc.		4,878
	143	Pinnacle Entertainment, Inc.(b)		1,579
	297	Planet Fitness, Inc., Class A(b)		4,562
	54	Pool Corp.		4,720
	91	Popeyes Louisiana Kitchen, Inc.(b)		4,892
	358	Potbelly Corp.(b)		5,102
	399	Reading International, Inc., Class A(b)		5,175
	77	Red Robin Gourmet Burgers, Inc.(b)		4,994
	314	Regis Corp.(b)		4,292
	296	Rent-A-Center, Inc.		4,351
	120	Restoration Hardware Holdings, Inc.(b)		5,192
	919	Ruby Tuesday, Inc.(b)		4,044
	258	Ruth’s Hospitality Group, Inc.		4,097
	117	Saga Communications, Inc., Class A		4,920
	124	Scholastic Corp.		4,511
	532	Scientific Games Corp., Class A(b)		5,277
	227	SeaWorld Entertainment, Inc.		4,524
	247	Select Comfort Corp.(b)		6,096
	794	Sequential Brands Group, Inc.(b)		4,407
	141	Shake Shack, Inc., Class A(b)		5,149
	173	Shoe Carnival, Inc.		4,434
	102	Shutterfly, Inc.(b)		4,690
	151	Sinclair Broadcast Group, Inc., Class A		4,843

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

43

PowerShares Russell 2000 Equal Weight Portfolio (EQWS) (continued)

April 30, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Discretionary (continued)
	1,642	Sizmek, Inc.(b)	$	4,351
	1,297	Skullcandy, Inc.(b)		4,423
	172	Smith & Wesson Holding Corp.(b)		3,755
	252	Sonic Automotive, Inc., Class A		4,728
	142	Sonic Corp.		4,881
	184	Sotheby’s		5,012
	249	Speedway Motorsports, Inc.		4,362
	377	Sportsman’s Warehouse Holdings, Inc.(b)		4,290
	585	Stage Stores, Inc.		4,306
	138	Standard Motor Products, Inc.		4,900
	633	Stein Mart, Inc.		4,583
	129	Steven Madden Ltd.(b)		4,516
	319	Stoneridge, Inc.(b)		4,549
	79	Strattec Security Corp.		4,179
	97	Strayer Education, Inc.(b)		4,815
	67	Sturm Ruger & Co., Inc.		4,290
	209	Superior Industries International, Inc.		5,459
	265	Superior Uniform Group, Inc.		5,040
	274	Tailored Brands, Inc.		4,773
	342	Taylor Morrison Home Corp., Class A(b)		4,925
	92	Tenneco, Inc.(b)		4,904
	110	Texas Roadhouse, Inc.		4,479
	318	Tile Shop Holdings, Inc. (The)(b)		5,673
	687	Tilly’s, Inc., Class A(b)		4,321
	302	Time, Inc.		4,439
	177	Tower International, Inc.		4,062
	432	Townsquare Media, Inc., Class A(b)		4,596
	407	TRI Pointe Homes, Inc.(b)		4,721
	577	Tribune Publishing Co.		6,537
	595	Tuesday Morning Corp.(b)		5,165
	172	Tumi Holdings, Inc.(b)		4,589
	552	Unifi, Inc.(b)		14,220
	73	Universal Electronics, Inc.(b)		4,848
	1,143	Universal Technical Institute, Inc.		4,515
	36	Vail Resorts, Inc.		4,667
	235	Vera Bradley, Inc.(b)		4,122
	724	Vince Holding Corp.(b)		4,474
	154	Vitamin Shoppe, Inc.(b)		4,215
	1,013	VOXX International Corp., Class A(b)		4,548
	113	Wayfair, Inc., Class A(b)		4,266
	254	WCI Communities, Inc.(b)		4,059
	339	Weight Watchers International, Inc.(b)		4,390
	499	West Marine, Inc.(b)		5,000
	181	Weyco Group, Inc.		5,075
	343	William Lyon Homes, Class A(b)		4,836
	210	Wingstop, Inc.(b)		5,237
	47	Winmark Corp.		4,474
	215	Winnebago Industries, Inc.		4,653
	258	Wolverine World Wide, Inc.		4,889
	259	World Wrestling Entertainment, Inc., Class A		4,310
	532	ZAGG, Inc.(b)		4,261
	119	Zoe’s Kitchen, Inc.(b)		4,461
	241	Zumiez, Inc.(b)		4,044
				1,412,640

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Staples—10.3%
	2,294	Amplify Snack Brands, Inc.(b)	$	35,351
	1,035	Andersons, Inc. (The)		34,683
	925	B&G Foods, Inc.		38,119
	167	Boston Beer Co., Inc. (The), Class A(b)		26,065
	557	Calavo Growers, Inc.		31,844
	580	Cal-Maine Foods, Inc.		29,441
	292	Casey’s General Stores, Inc.		32,704
	289	Central Garden & Pet Co., Class A(b)		4,708
	1,633	Chefs’ Warehouse, Inc. (The)(b)		31,468
	202	Coca-Cola Bottling Co. Consolidated		32,193
	467	Darling Ingredients, Inc.(b)		6,767
	1,835	Dean Foods Co.		31,617
	570	Elizabeth Arden, Inc.(b)		5,831
	1,165	Farmer Brothers Co.(b)		35,195
	742	Fresh Del Monte Produce, Inc.		32,099
	220	HRG Group, Inc.(b)		3,168
	901	Ingles Markets, Inc., Class A		32,499
	153	Inter Parfums, Inc.		4,685
	299	J & J Snack Foods Corp.		30,238
	446	John B. Sanfilippo & Son, Inc.		24,677
	283	Lancaster Colony Corp.		32,969
	1,190	Landec Corp.(b)		13,387
	1,078	Medifast, Inc.		33,989
	1,348	MGP Ingredients, Inc.		35,614
	743	National Beverage Corp.(b)		34,728
	1,010	Natural Health Trends Corp.		36,552
	1,281	Nutraceutical International Corp.(b)		30,219
	379	Oil-Dri Corp. of America		12,643
	1,852	Omega Protein Corp.(b)		34,429
	1,135	Orchids Paper Products Co.		34,810
	1,362	Performance Food Group Co.(b)		35,249
	461	Post Holdings, Inc., Class A(b)		33,118
	55	PriceSmart, Inc.		4,760
	134	Revlon, Inc., Class A(b)		4,882
	354	Sanderson Farms, Inc.		32,476
	11	Seaboard Corp.(b)		33,033
	972	Seneca Foods Corp., Class A(b)		31,677
	1,977	Smart & Final Stores, Inc.(b)		31,474
	1,029	Snyder’s-Lance, Inc.		32,897
	1,088	SpartanNash Co.		30,138
	5,580	SUPERVALU, Inc.(b)		28,067
	934	Tootsie Roll Industries, Inc.		33,288
	374	TreeHouse Foods, Inc.(b)		33,062
	787	United Natural Foods, Inc.(b)		28,072
	565	Universal Corp.		30,821
	273	USANA Health Sciences, Inc.(b)		32,334
	1,384	Vector Group Ltd.		29,894
	295	WD-40 Co.		30,178
	732	Weis Markets, Inc.		33,321
				1,351,433
		Energy—11.6%
	2,372	Alon USA Energy, Inc.		24,906
	3,448	Archrock, Inc.		33,963
	712	Ardmore Shipping Corp. (Ireland)		6,657
	2,807	Atwood Oceanics, Inc.		27,116
	4,266	Bill Barrett Corp.(b)		33,957

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

44

PowerShares Russell 2000 Equal Weight Portfolio (EQWS) (continued)

April 30, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Energy (continued)
	328	Bristow Group, Inc.	$	7,518
	2,892	Callon Petroleum Co.(b)		30,395
	1,635	CARBO Ceramics, Inc.		24,280
	801	Carrizo Oil & Gas, Inc.(b)		28,331
	8,096	Clean Energy Fuels Corp.(b)		23,154
	2,110	Contango Oil & Gas Co.(b)		26,544
	1,601	Delek US Holdings, Inc.		25,440
	1,034	DHT Holdings, Inc.		5,935
	614	Dorian LPG Ltd.(b)		6,238
	2,671	Era Group, Inc.(b)		25,455
	23,841	EXCO Resources, Inc.(b)		36,238
	1,509	Exterran Corp.(b)		23,088
	9,509	Fairmount Santrol Holdings, Inc.(b)		38,036
	1,880	Forum Energy Technologies, Inc.(b)		31,471
	757	Frontline Ltd. (Norway)		6,238
	615	GasLog Ltd. (Monaco)		7,878
	882	Gener8 Maritime, Inc.(b)		6,377
	2,025	Geospace Technologies Corp.(b)		33,129
	1,672	Green Plains, Inc.		30,263
	986	Gulfmark Offshore, Inc., Class A(b)		6,685
	4,319	Helix Energy Solutions Group, Inc.(b)		37,273
	2,636	Hornbeck Offshore Services, Inc.(b)		30,947
	1,308	Matador Resources Co.(b)		28,187
	1,412	Matrix Service Co.(b)		26,602
	6,209	McDermott International, Inc.(b)		28,189
	1,156	Natural Gas Services Group, Inc.(b)		26,576
	3,728	Navios Maritime Acquisition Corp.		7,195
	5,837	Newpark Resources, Inc.(b)		27,259
	412	Nordic American Tankers Ltd.		6,349
	6,036	Northern Oil and Gas, Inc.(b)		32,956
	3,498	Oasis Petroleum, Inc.(b)		33,896
	797	Oil States International, Inc.(b)		27,608
	5,168	Pacific Ethanol, Inc.(b)		24,445
	1,424	Panhandle Oil and Gas, Inc., Class A		26,899
	1,283	Par Pacific Holdings, Inc.(b)		24,518
	11,626	Parker Drilling Co.(b)		35,576
	1,104	Parsley Energy, Inc., Class A(b)		25,856
	419	PDC Energy, Inc.(b)		26,309
	318	PHI, Inc.(b)		7,130
	11,458	Pioneer Energy Services Corp.(b)		35,634
	2,669	Renewable Energy Group, Inc.(b)		25,943
	444	REX American Resources Corp.(b)		24,140
	1,965	RigNet, Inc.(b)		33,601
	4,825	Ring Energy, Inc.(b)		34,740
	856	RSP Permian, Inc.(b)		26,202
	4,721	Sanchez Energy Corp.(b)		42,442
	1,026	Scorpio Tankers, Inc. (Monaco)		6,423
	466	SEACOR Holdings, Inc.(b)		27,387
	1,124	SemGroup Corp., Class A		34,462
	433	Ship Finance International Ltd. (Norway)		6,569
	3,188	Synergy Resources Corp.(b)		23,017
	1,632	Teekay Tankers Ltd., Class A (Bermuda)		6,430
	2,878	Tesco Corp.		27,226
	4,026	TETRA Technologies, Inc.(b)		28,987
	922	Tidewater, Inc.		8,077
	2,757	Unit Corp.(b)		34,904

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Energy (continued)
	586	US Silica Holdings, Inc.	$	14,972
	803	Western Refining, Inc.		21,488
	3,299	Westmoreland Coal Co.(b)		23,522
				1,519,228
		Financials—10.7%
	94	1st Source Corp.		3,237
	87	Acadia Realty Trust REIT		2,932
	163	Access National Corp.		3,205
	233	AG Mortgage Investment Trust, Inc. REIT		3,120
	77	Agree Realty Corp. REIT		2,986
	85	Alexander & Baldwin, Inc.		3,250
	10	Alexander’s, Inc. REIT		3,827
	166	Allegiance Bancshares, Inc.(b)		3,494
	133	Altisource Portfolio Solutions SA(b)		4,162
	267	Altisource Residential Corp. REIT		3,103
	189	Ambac Financial Group, Inc.(b)		3,067
	77	American Assets Trust, Inc. REIT		3,055
	204	American Capital Mortgage Investment Corp. REIT		3,025
	185	American Equity Investment Life Holding Co.		2,590
	120	American National Bankshares, Inc.		3,208
	103	Ameris Bancorp		3,234
	58	AMERISAFE, Inc.		3,125
	121	Ames National Corp.		3,121
	628	Anworth Mortgage Asset Corp. REIT		2,964
	180	Apollo Commercial Real Estate Finance, Inc. REIT		2,867
	217	Apollo Residential Mortgage, Inc. REIT		2,943
	271	Ares Commercial Real Estate Corp. REIT		3,252
	53	Argo Group International Holdings Ltd.		2,913
	220	Arlington Asset Investment Corp., Class A		2,847
	268	Armada Hoffler Properties, Inc. REIT		3,136
	140	ARMOUR Residential REIT, Inc. REIT		2,979
	112	Arrow Financial Corp.		3,154
	287	Ashford Hospitality Prime, Inc. REIT		3,212
	514	Ashford Hospitality Trust, Inc. REIT		2,873
	68	Ashford, Inc.(b)		3,094
	106	Associated Capital Group, Inc., Class A(b)		3,230
	192	Astoria Financial Corp.		2,888
	171	Atlas Financial Holdings, Inc.(b)		3,004
	276	AV Homes, Inc.(b)		3,174
	123	Baldwin & Lyons, Inc., Class B		3,006
	176	Banc of California, Inc.		3,582
	52	BancFirst Corp.		3,243
	126	Banco Latinoamericano de Comercio Exterior SA, Class E (Panama)		3,258
	553	Bancorp, Inc. (The)(b)		3,135
	142	BancorpSouth, Inc.		3,336
	397	Bank Mutual Corp.		3,208
	59	Bank of Marin Bancorp		2,892
	71	Bank of the Ozarks, Inc.		2,932
	250	BankFinancial Corp.		3,090
	72	Banner Corp.		3,080
	92	Bar Harbor Bankshares		3,192
	202	BBCN Bancorp, Inc.		3,155
	196	BBX Capital Corp., Class A(b)		3,022

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

45

PowerShares Russell 2000 Equal Weight Portfolio (EQWS) (continued)

April 30, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	338	Bear State Financial, Inc.	$	3,326
	219	Beneficial Bancorp, Inc.(b)		3,042
	112	Berkshire Hills Bancorp, Inc.		3,040
	334	BGC Partners, Inc., Class A		3,033
	218	Blue Hills Bancorp, Inc.		3,178
	282	Bluerock Residential Growth REIT, Inc., Class A REIT		3,085
	143	BNC Bancorp		3,197
	141	BofI Holding, Inc.(b)		2,872
	262	Boston Private Financial Holdings, Inc.		3,202
	100	Bridge Bancorp, Inc.		3,044
	272	Brookline Bancorp, Inc.		3,095
	118	Bryn Mawr Bank Corp.		3,354
	134	BSB Bancorp, Inc.(b)		3,185
	124	C1 Financial, Inc.(b)		3,042
	349	Calamos Asset Management, Inc., Class A		2,876
	72	Camden National Corp.		3,133
	96	Capital Bank Financial Corp., Class A		2,902
	209	Capital City Bank Group, Inc.		3,097
	224	Capitol Federal Financial, Inc.		2,977
	301	Capstead Mortgage Corp. REIT		2,926
	148	Cardinal Financial Corp.		3,275
	239	CareTrust REIT, Inc. REIT		3,040
	525	Cascade Bancorp(b)		3,176
	76	Cash America International, Inc.		2,809
	278	CatchMark Timber Trust, Inc., Class A REIT		2,950
	107	Cathay General Bancorp		3,266
	425	Cedar Realty Trust, Inc. REIT		2,941
	201	Centerstate Banks, Inc.		3,274
	139	Central Pacific Financial Corp.		3,244
	77	Century Bancorp, Inc., Class A		3,272
	221	Charter Financial Corp.		2,769
	142	Chatham Lodging Trust REIT		3,026
	84	Chemical Financial Corp.		3,231
	117	Chesapeake Lodging Trust REIT		2,882
	150	Citizens & Northern Corp.		3,028
	443	Citizens, Inc., Class A(b)		3,610
	64	City Holding Co.		3,144
	196	Clifton Bancorp, Inc.		2,916
	168	CNB Financial Corp.		3,006
	163	CNO Financial Group, Inc.		2,994
	258	CoBiz Financial, Inc.		3,124
	79	Cohen & Steers, Inc.		3,102
	179	Colony Capital, Inc., Class A REIT		3,165
	121	Colony Starwood Homes REIT		2,949
	101	Columbia Banking System, Inc.		2,978
	78	Community Bank System, Inc.		3,086
	84	Community Trust Bancorp, Inc.		3,013
	222	CommunityOne Bancorp(b)		2,930
	189	ConnectOne Bancorp, Inc.		3,253
	64	Consolidated-Tomoka Land Co.		3,155
	173	CorEnergy Infrastructure Trust, Inc. REIT		3,683
	43	CoreSite Realty Corp. REIT		3,222
	300	Cousins Properties, Inc. REIT		3,105
	842	Cowen Group, Inc., Class A(b)		2,934
	516	Crawford & Co., Class B		3,478

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	141	CU Bancorp(b)	$	3,249
	91	CubeSmart REIT		2,695
	124	Customers Bancorp, Inc.(b)		3,222
	172	CVB Financial Corp.		2,955
	68	CyrusOne, Inc. REIT		3,001
	375	CYS Investments, Inc. REIT		3,041
	76	DCT Industrial Trust, Inc. REIT		3,068
	17	Diamond Hill Investment Group, Inc.		2,979
	304	DiamondRock Hospitality Co. REIT		2,709
	171	Dime Community Bancshares, Inc.		3,097
	211	Donegal Group, Inc., Class A		3,230
	74	DuPont Fabros Technology, Inc. REIT		2,947
	440	Dynex Capital, Inc. REIT		2,860
	63	Eagle Bancorp, Inc.(b)		3,194
	165	Easterly Government Properties, Inc. REIT		3,044
	51	EastGroup Properties, Inc. REIT		3,047
	73	Education Realty Trust, Inc. REIT		2,903
	326	eHealth, Inc.(b)		3,648
	116	EMC Insurance Group, Inc.		3,069
	107	Employers Holdings, Inc.		3,178
	121	Encore Capital Group, Inc.(b)		3,406
	491	Enova International, Inc.(b)		4,326
	19	Enstar Group Ltd. (Bermuda)(b)		3,010
	122	Enterprise Bancorp, Inc.		2,944
	110	Enterprise Financial Services Corp.		3,011
	46	EPR Properties REIT		3,030
	139	Equity Bancshares, Inc., Class A(b)		2,915
	104	Equity One, Inc. REIT		2,943
	151	Essent Group Ltd.(b)		3,083
	199	EverBank Financial Corp.		3,001
	58	Evercore Partners, Inc., Class A		2,995
	975	EZCORP, Inc., Class A(b)		4,826
	229	F.N.B. Corp.		3,027
	115	Farmers Capital Bank Corp.(b)		3,233
	50	FBL Financial Group, Inc., Class A		3,023
	91	FCB Financial Holdings, Inc., Class A(b)		3,180
	77	Federal Agricultural Mortgage Corp., Class C		3,132
	154	Federated National Holding Co.		2,934
	386	FelCor Lodging Trust, Inc. REIT		2,764
	113	Fidelity & Guaranty Life		2,988
	189	Fidelity Southern Corp.		3,054
	99	Financial Engines, Inc.		3,189
	104	Financial Institutions, Inc.		2,912
	81	First American Financial Corp.		2,918
	1,070	First BanCorp(b)		4,173
	157	First Bancorp, Inc.		3,116
	157	First Bancorp/Southern Pines NC		3,203
	147	First Busey Corp.		3,005
	136	First Business Financial Services, Inc.		3,442
	65	First Cash Financial Services, Inc.(b)		2,972
	12	First Citizens BancShares, Inc., Class A		3,060
	337	First Commonwealth Financial Corp.		3,094
	155	First Community Bancshares, Inc.		3,226
	185	First Connecticut Bancorp, Inc.		3,188
	78	First Defiance Financial Corp.		3,087
	163	First Financial Bancorp		3,178

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

46

PowerShares Russell 2000 Equal Weight Portfolio (EQWS) (continued)

April 30, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	102	First Financial Bankshares, Inc.	$	3,303
	87	First Financial Corp.		3,082
	130	First Industrial Realty Trust, Inc. REIT		2,982
	105	First Interstate BancSystem, Inc., Class A		2,845
	129	First Merchants Corp.		3,309
	166	First Midwest Bancorp, Inc.		3,068
	140	First NBC Bank Holding Co.(b)		3,044
	106	First of Long Island Corp. (The)		3,245
	340	First Potomac Realty Trust REIT		2,859
	140	FirstMerit Corp.		3,102
	141	Flagstar Bancorp, Inc.(b)		3,337
	138	Flushing Financial Corp.		2,753
	283	FNFV Group(b)		3,048
	236	Forestar Group, Inc.(b)		3,186
	155	Fox Chase Bancorp, Inc.		3,055
	106	Franklin Financial Network, Inc.(b)		3,216
	290	Franklin Street Properties Corp. REIT		3,080
	85	FRP Holdings, Inc.(b)		3,101
	223	Fulton Financial Corp.		3,120
	475	Gain Capital Holdings, Inc.		3,254
	80	GAMCO Investors, Inc., Class A		3,166
	89	Geo Group, Inc. (The) REIT		2,851
	91	German American Bancorp, Inc.		2,933
	154	Getty Realty Corp. REIT		3,031
	119	Glacier Bancorp, Inc.		3,081
	182	Gladstone Commercial Corp. REIT		3,063
	98	Global Indemnity PLC, Class A(b)		3,082
	175	Government Properties Income Trust REIT		3,311
	357	Gramercy Property Trust REIT		3,024
	267	Great Ajax Corp. REIT		3,637
	82	Great Southern Bancorp, Inc.		3,105
	108	Great Western Bancorp, Inc.		3,404
	397	Green Bancorp, Inc.(b)		3,240
	130	Green Dot Corp., Class A(b)		2,890
	137	Greenhill & Co., Inc.		3,017
	139	Greenlight Capital Re Ltd., Class A(b)		2,993
	195	Guaranty Bancorp		3,202
	263	Hallmark Financial Services, Inc.(b)		2,969
	1,704	Hampton Roads Bankshares, Inc.(b)		2,999
	125	Hancock Holding Co.		3,246
	136	Hanmi Financial Corp.		3,144
	164	Hannon Armstrong Sustainable Infrastructure Capital, Inc. REIT		3,182
	206	Hatteras Financial Corp. REIT		3,273
	90	HCI Group, Inc.		2,696
	99	Healthcare Realty Trust, Inc. REIT		2,998
	97	Heartland Financial USA, Inc.		3,250
	305	Heritage Commerce Corp.		3,184
	171	Heritage Financial Corp.		3,155
	188	Heritage Insurance Holdings, Inc.		2,499
	386	Heritage Oaks Bancorp		3,223
	143	Hersha Hospitality Trust REIT		2,758
	110	HFF, Inc., Class A		3,501
	64	Highwoods Properties, Inc. REIT		2,991
	161	Hilltop Holdings, Inc.(b)		3,197
	25	Hingham Institution for Savings		3,200

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	73	Home BancShares, Inc.	$	3,138
	144	HomeStreet, Inc.(b)		3,103
	163	HomeTrust Bancshares, Inc.(b)		3,024
	94	Horace Mann Educators Corp.		2,923
	120	Horizon Bancorp		2,928
	125	Houlihan Lokey, Inc., Class A		3,151
	104	Hudson Pacific Properties, Inc. REIT		3,042
	58	IBERIABANK Corp.		3,421
	211	Impac Mortgage Holdings, Inc.(b)		2,996
	189	Independence Holding Co.		2,905
	446	Independence Realty Trust, Inc. REIT		3,198
	64	Independent Bank Corp./MA		3,010
	207	Independent Bank Corp./MI		3,136
	105	Independent Bank Group, Inc.		3,843
	37	Infinity Property & Casualty Corp.		2,966
	179	InfraREIT, Inc. REIT(b)		2,968
	121	International Bancshares Corp.		3,169
	111	INTL FCStone, Inc.(b)		3,030
	252	Invesco Mortgage Capital, Inc. REIT(c)		3,238
	144	Investment Technology Group, Inc.		2,811
	262	Investors Bancorp, Inc.		3,026
	424	Investors Real Estate Trust REIT		2,552
	325	iStar, Inc. REIT(b)		3,185
	92	James River Group Holdings Ltd.		2,848
	214	Janus Capital Group, Inc.		3,124
	253	KCG Holdings, Inc., Class A(b)		3,466
	243	Kearny Financial Corp.		3,067
	101	Kemper Corp.		3,127
	140	Kennedy-Wilson Holdings, Inc.		3,025
	110	Kite Realty Group Trust REIT		2,995
	256	Ladder Capital Corp., Class A REIT		3,049
	1,273	Ladenburg Thalmann Financial Services, Inc.(b)		3,412
	290	Lakeland Bancorp, Inc.		3,216
	65	Lakeland Financial Corp.		3,074
	118	LaSalle Hotel Properties REIT		2,820
	155	LegacyTexas Financial Group, Inc.		3,822
	31	LendingTree, Inc.(b)		2,774
	346	Lexington Realty Trust REIT		3,038
	209	Live Oak Bancshares, Inc.		3,290
	67	LTC Properties, Inc. REIT		3,108
	132	Mack-Cali Realty Corp. REIT		3,374
	233	Maiden Holdings Ltd.		2,850
	143	MainSource Financial Group, Inc.		3,125
	124	Marcus & Millichap, Inc.(b)		3,110
	32	MarketAxess Holdings, Inc.		3,928
	411	Marlin Business Services Corp.		6,079
	92	MB Financial, Inc.		3,198
	344	MBIA, Inc.(b)		2,683
	232	Medical Properties Trust, Inc. REIT		3,088
	555	Medley Management, Inc., Class A		3,630
	131	Mercantile Bank Corp.		3,160
	100	Merchants Bancshares, Inc.		3,044
	213	Meridian Bancorp, Inc.		3,114
	66	Meta Financial Group, Inc.		3,275
	406	MGIC Investment Corp.(b)		2,935
	107	MidWestOne Financial Group, Inc.		3,035

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

47

PowerShares Russell 2000 Equal Weight Portfolio (EQWS) (continued)

April 30, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	108	Moelis & Co., Class A	$	3,036
	256	Monmouth Real Estate Investment Corp. REIT		2,944
	311	Monogram Residential Trust, Inc. REIT		3,150
	147	National Bank Holdings Corp., Class A		2,939
	87	National Bankshares, Inc.		3,131
	128	National Commerce Corp.(b)		3,063
	140	National General Holdings Corp.		2,827
	45	National Health Investors, Inc. REIT		3,064
	99	National Interstate Corp.		3,048
	149	National Storage Affiliates Trust REIT		2,908
	16	National Western Life Group, Inc., Class A		3,467
	304	Nationstar Mortgage Holdings, Inc.(b)		3,523
	36	Navigators Group, Inc. (The)(b)		2,974
	111	NBT Bancorp, Inc.		3,146
	76	Nelnet, Inc., Class A		3,185
	253	New Residential Investment Corp. REIT		3,061
	299	New Senior Investment Group, Inc. REIT		3,229
	649	New York Mortgage Trust, Inc. REIT		3,375
	302	New York REIT, Inc. REIT		2,969
	339	NewStar Financial, Inc.(b)		3,261
	233	NexPoint Residential Trust, Inc. REIT		3,276
	592	NMI Holdings, Inc., Class A(b)		3,724
	182	Northfield Bancorp, Inc.		2,887
	221	Northwest Bancshares, Inc.		3,098
	169	OceanFirst Financial Corp.		3,292
	1,200	Ocwen Financial Corp.(b)		2,712
	424	OFG Bancorp		3,744
	439	Old National Bancorp		5,883
	417	Old Second Bancorp, Inc.		2,986
	233	OM Asset Management PLC		3,127
	419	On Deck Capital, Inc.(b)		3,616
	138	One Liberty Properties, Inc. REIT		3,232
	234	OneBeacon Insurance Group Ltd., Class A		2,902
	207	Oppenheimer Holdings, Inc., Class A		3,163
	88	Opus Bank		3,179
	291	Orchid Island Capital, Inc. REIT		2,817
	176	Oritani Financial Corp.		3,050
	187	Pacific Continental Corp.		3,115
	142	Pacific Premier Bancorp, Inc.(b)		3,303
	33	Park National Corp.		3,029
	449	Park Sterling Corp.		3,278
	200	Parkway Properties, Inc. REIT		3,290
	760	Patriot National, Inc.(b)		6,323
	177	Peapack-Gladstone Financial Corp.		3,388
	106	Pebblebrook Hotel Trust REIT		2,930
	78	Penns Woods Bancorp, Inc.		3,246
	144	Pennsylvania Real Estate Investment Trust REIT		3,303
	267	PennyMac Financial Services, Inc., Class A(b)		3,402
	224	PennyMac Mortgage Investment Trust REIT		3,044
	157	Peoples Bancorp, Inc.		3,374
	79	Peoples Financial Services Corp.		3,114
	183	People’s Utah Bancorp		3,009
	488	PHH Corp.(b)		6,261
	162	Physicians Realty Trust REIT		2,937
	295	PICO Holdings, Inc.(b)		2,929
	63	Pinnacle Financial Partners, Inc.		3,098

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	64	Piper Jaffray Cos.(b)	$	2,669
	99	Potlatch Corp. REIT		3,487
	104	PRA Group, Inc.(b)		3,451
	243	Preferred Apartment Communities, Inc., Class A REIT		2,999
	102	Preferred Bank		3,240
	67	Primerica, Inc.		3,321
	77	PrivateBancorp, Inc.		3,204
	65	Prosperity Bancshares, Inc.		3,430
	149	Provident Financial Services, Inc.		2,977
	30	PS Business Parks, Inc. REIT		2,873
	404	Pzena Investment Management, Inc., Class A		3,660
	128	QCR Holdings, Inc.		3,299
	64	QTS Realty Trust, Inc., Class A REIT		3,099
	252	Radian Group, Inc.		3,223
	1,033	RAIT Financial Trust REIT		3,140
	172	Ramco-Gershenson Properties Trust REIT		3,046
	87	RE/MAX Holdings, Inc., Class A		3,202
	241	Redwood Trust, Inc. REIT		3,123
	177	Regional Management Corp.(b)		2,924
	93	Renasant Corp.		3,194
	117	Republic Bancorp, Inc., Class A		3,195
	529	Resource America, Inc., Class A		3,343
	262	Resource Capital Corp. REIT		3,113
	153	Retail Opportunity Investments Corp. REIT		3,010
	167	Rexford Industrial Realty, Inc. REIT		3,135
	44	RLI Corp.		2,736
	134	RLJ Lodging Trust REIT		2,823
	120	RMR Group, Inc. (The), Class A		2,990
	162	Rouse Properties, Inc. REIT		2,992
	59	Ryman Hospitality Properties, Inc. REIT		3,040
	117	S&T Bancorp, Inc.		3,003
	153	Sabra Health Care REIT, Inc. REIT		3,227
	231	Safeguard Scientifics, Inc.(b)		3,188
	53	Safety Insurance Group, Inc.		3,000
	108	Sandy Spring Bancorp, Inc.		3,088
	57	Saul Centers, Inc. REIT		3,031
	189	Seacoast Banking Corp. of Florida(b)		3,066
	133	Select Income REIT		3,079
	83	Selective Insurance Group, Inc.		2,881
	70	ServisFirst Bancshares, Inc.		3,450
	167	Sierra Bancorp		2,941
	206	Silver Bay Realty Trust Corp. REIT		3,008
	66	Simmons First National Corp., Class A		3,082
	47	South State Corp.		3,289
	115	Southside Bancshares, Inc.		3,359
	191	Southwest Bancorp, Inc.		3,066
	26	Sovran Self Storage, Inc. REIT		2,762
	187	St. Joe Co. (The)(b)		3,151
	152	STAG Industrial, Inc., Class A REIT		3,034
	134	State Auto Financial Corp.		2,748
	151	State Bank Financial Corp.		3,153
	238	State National Cos., Inc.		2,685
	190	Sterling Bancorp		3,105
	86	Stewart Information Services Corp.		2,995
	103	Stifel Financial Corp.(b)		3,390

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

48

PowerShares Russell 2000 Equal Weight Portfolio (EQWS) (continued)

April 30, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	78	Stock Yards Bancorp, Inc.	$	3,154
	99	Stonegate Bank		3,118
	559	Stonegate Mortgage Corp.(b)		3,225
	116	STORE Capital Corp. REIT		2,978
	118	Suffolk Bancorp		2,831
	260	Summit Hotel Properties, Inc. REIT		2,964
	143	Sun Bancorp, Inc.(b)		3,073
	43	Sun Communities, Inc. REIT		2,918
	224	Sunstone Hotel Investors, Inc. REIT		2,869
	166	Talmer Bancorp, Inc., Class A		3,220
	150	Tejon Ranch Co.(b)		3,378
	131	Terreno Realty Corp. REIT		2,983
	116	Territorial Bancorp, Inc.		3,043
	78	Texas Capital Bancshares, Inc.(b)		3,574
	263	Third Point Reinsurance Ltd. (Bermuda)(b)		2,993
	518	Tiptree Financial, Inc., Class A		2,865
	47	Tompkins Financial Corp.		3,071
	158	TowneBank		3,318
	117	TriCo Bancshares		3,150
	238	TriState Capital Holdings, Inc.(b)		3,180
	191	Triumph Bancorp, Inc.(b)		3,035
	319	Trupanion, Inc.(b)		3,978
	493	TrustCo Bank Corp. NY		3,160
	130	Trustmark Corp.		3,186
	57	UMB Financial Corp.		3,178
	304	UMH Properties, Inc. REIT		2,979
	186	Umpqua Holdings Corp.		2,944
	123	Union Bankshares Corp.		3,248
	82	United Bankshares, Inc.		3,173
	163	United Community Banks, Inc.		3,281
	517	United Community Financial Corp.		3,071
	313	United Development Funding IV REIT		1,002
	237	United Financial Bancorp, Inc.		3,076
	69	United Fire Group, Inc.		3,093
	161	United Insurance Holdings Corp.		2,626
	54	Universal Health Realty Income Trust REIT		2,948
	168	Universal Insurance Holdings, Inc.		2,958
	156	Univest Corp. of Pennsylvania		3,079
	118	Urban Edge Properties REIT		3,061
	144	Urstadt Biddle Properties, Inc., Class A REIT		2,961
	315	Valley National Bancorp		2,980
	135	Virtu Financial, Inc., Class A		2,815
	39	Virtus Investment Partners, Inc.		3,051
	125	Walker & Dunlop, Inc.(b)		2,756
	426	Walter Investment Management Corp.(b)		3,088
	105	Washington REIT		3,010
	133	Washington Federal, Inc.		3,231
	79	Washington Trust Bancorp, Inc.		2,894
	218	Waterstone Financial, Inc.		3,056
	83	Webster Financial Corp.		3,041
	103	WesBanco, Inc.		3,309
	165	West Bancorporation, Inc.		3,077
	61	Westamerica Bancorp.		2,972
	95	Western Alliance Bancorp(b)		3,475
	296	Western Asset Mortgage Capital Corp. REIT		2,951
	52	Westwood Holdings Group, Inc.		2,993

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	241	Whitestone REIT	$	3,237
	295	Wilshire Bancorp, Inc.		3,177
	68	Wintrust Financial Corp.		3,537
	262	WisdomTree Investments, Inc.		2,853
	80	World Acceptance Corp.(b)		3,471
	91	WSFS Financial Corp.		3,107
	197	Xenia Hotels & Resorts, Inc. REIT		3,030
	129	Yadkin Financial Corp.		3,228
				1,397,253
		Health Care—12.0%
	208	AAC Holdings, Inc.(b)		4,283
	91	Abaxis, Inc.		4,124
	42	ABIOMED, Inc.(b)		4,080
	161	ACADIA Pharmaceuticals, Inc.(b)		5,200
	284	Accelerate Diagnostics, Inc.(b)		3,564
	161	Acceleron Pharma, Inc.(b)		4,822
	711	Accuray, Inc.(b)		3,811
	578	Aceto Corp.		12,965
	527	Achillion Pharmaceuticals, Inc.(b)		4,506
	258	Aclaris Therapeutics, Inc.(b)		4,768
	151	Acorda Therapeutics, Inc.(b)		3,903
	271	Adamas Pharmaceuticals, Inc.(b)		4,574
	223	Addus HomeCare Corp.(b)		4,125
	75	Adeptus Health, Inc., Class A(b)		5,109
	323	Aduro Biotech, Inc.(b)		4,183
	460	Advaxis, Inc.(b)		3,560
	1,104	Aegerion Pharmaceuticals, Inc.(b)		3,146
	330	Aerie Pharmaceuticals, Inc.(b)		5,234
	1,070	Affimed BV (Germany)(b)		4,334
	998	Agenus, Inc.(b)		3,513
	666	Agile Therapeutics, Inc.(b)		3,856
	292	Aimmune Therapeutics, Inc.(b)		3,781
	110	Air Methods Corp.(b)		4,068
	443	Akebia Therapeutics, Inc.(b)		4,160
	276	Albany Molecular Research, Inc.(b)		4,154
	149	Alder Biopharmaceuticals, Inc.(b)		3,956
	2,328	Alimera Sciences, Inc.(b)		5,168
	553	Alliance HealthCare Services, Inc.(b)		3,976
	109	Almost Family, Inc.(b)		4,579
	184	AMAG Pharmaceuticals, Inc.(b)		4,880
	87	Amedisys, Inc.(b)		4,480
	500	Amicus Therapeutics, Inc.(b)		3,735
	120	AMN Healthcare Services, Inc.(b)		4,261
	331	Amphastar Pharmaceuticals, Inc.(b)		4,071
	54	AmSurg Corp.(b)		4,373
	66	Anacor Pharmaceuticals, Inc.(b)		4,141
	51	Analogic Corp.		4,028
	333	AngioDynamics, Inc.(b)		4,079
	122	ANI Pharmaceuticals, Inc.(b)		5,547
	86	Anika Therapeutics, Inc.(b)		3,927
	5,226	Antares Pharma, Inc.(b)		5,749
	1,110	Anthera Pharmaceuticals, Inc.(b)		4,107
	283	Applied Genetic Technologies Corp.(b)		4,446
	1,033	Aralez Pharmaceuticals, Inc. (Canada)(b)		4,039
	764	Aratana Therapeutics, Inc.(b)		4,592
	550	Ardelyx, Inc.(b)		4,405

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

49

PowerShares Russell 2000 Equal Weight Portfolio (EQWS) (continued)

April 30, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Health Care (continued)
	2,099	Arena Pharmaceuticals, Inc.(b)	$	3,610
	638	ARIAD Pharmaceuticals, Inc.(b)		4,581
	1,353	Array BioPharma, Inc.(b)		4,316
	859	Arrowhead Pharmaceuticals, Inc.(b)		4,974
	767	Assembly Biosciences, Inc.(b)		4,602
	823	Asterias Biotherapeutics, Inc.(b)		3,531
	226	Atara Biotherapeutics, Inc.(b)		4,070
	236	AtriCure, Inc.(b)		3,752
	10	Atrion Corp.		3,973
	768	Avalanche Biotechnologies, Inc.(b)		4,332
	132	Avexis, Inc.(b)		3,300
	338	Axovant Sciences Ltd.(b)		4,394
	486	Bellicum Pharmaceuticals, Inc.(b)		4,928
	1,392	BioCryst Pharmaceuticals, Inc.(b)		4,538
	1,367	BioDelivery Sciences International, Inc.(b)		4,620
	1,940	BioScrip, Inc.(b)		5,122
	114	BioSpecifics Technologies Corp.(b)		4,054
	328	BioTelemetry, Inc.(b)		5,159
	1,518	BioTime, Inc.(b)		4,433
	237	Blueprint Medicines Corp.(b)		3,598
	742	Calithera Biosciences, Inc.(b)		3,955
	91	Cambrex Corp.(b)		4,390
	56	Cantel Medical Corp.		3,751
	214	Capital Senior Living Corp.(b)		4,293
	669	Cara Therapeutics, Inc.(b)		4,081
	395	Cardiovascular Systems, Inc.(b)		5,522
	1,239	Castlight Health, Inc., Class B(b)		4,460
	147	Catalent, Inc.(b)		4,341
	3,255	Catalyst Pharmaceuticals, Inc.(b)		2,213
	1,107	Celldex Therapeutics, Inc.(b)		4,428
	231	Cellular Biomedicine Group, Inc.(b)		3,989
	256	Cempra, Inc.(b)		4,334
	124	Cepheid, Inc.(b)		3,539
	663	Cerus Corp.(b)		4,150
	29	Chemed Corp.		3,764
	1,715	ChemoCentryx, Inc.(b)		4,116
	477	Chiasma, Inc.(b)		1,607
	816	Chimerix, Inc.(b)		4,880
	379	Cidara Therapeutics, Inc.(b)		5,071
	232	Civitas Solutions, Inc.(b)		4,649
	207	Clovis Oncology, Inc.(b)		2,879
	204	Coherus Biosciences, Inc.(b)		3,841
	233	Collegium Pharmaceutical, Inc.(b)		4,441
	75	Computer Programs & Systems, Inc.		3,850
	301	Concert Pharmaceuticals, Inc.(b)		4,196
	419	ConforMIS, Inc.(b)		5,191
	97	CONMED Corp.		4,018
	912	Corcept Therapeutics, Inc.(b)		4,350
	985	Corium International, Inc.(b)		4,413
	1,635	CorMedix, Inc.(b)		6,834
	96	CorVel Corp.(b)		4,339
	360	Cross Country Healthcare, Inc.(b)		4,475
	356	CryoLife, Inc.		4,414
	7,653	CTI BioPharma Corp.(b)		3,854
	2,631	Curis, Inc.(b)		5,262
	348	Cutera, Inc.(b)		4,058

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Health Care (continued)
	92	Cynosure, Inc., Class A(b)	$	4,502
	589	Cytokinetics, Inc.(b)		4,794
	307	CytomX Therapeutics, Inc.(b)		3,966
	1,555	CytRx Corp.(b)		5,069
	294	Depomed, Inc.(b)		5,110
	190	Dermira, Inc.(b)		4,805
	828	Dicerna Pharmaceuticals, Inc.(b)		3,825
	467	Dimension Therapeutics, Inc.(b)		3,320
	1,188	Diplomat Pharmacy, Inc.(b)		35,985
	2,932	Durect Corp.(b)		3,929
	103	Dyax Corp.(b)		114
	216	Dynavax Technologies Corp.(b)		3,545
	101	Eagle Pharmaceuticals, Inc.(b)		3,824
	490	Edge Therapeutics, Inc.(b)		4,033
	126	Editas Medicine, Inc.(b)		4,164
	114	Emergent BioSolutions, Inc.(b)		4,391
	142	Enanta Pharmaceuticals, Inc.(b)		4,146
	768	EndoChoice Holdings, Inc.(b)		4,239
	1,227	Endocyte, Inc.(b)		4,785
	483	Endologix, Inc.(b)		5,414
	172	Ensign Group, Inc. (The)		3,880
	237	Entellus Medical, Inc.(b)		3,446
	366	Epizyme, Inc.(b)		3,814
	251	Esperion Therapeutics, Inc.(b)		4,114
	509	Evolent Health, Inc., Class A(b)		6,113
	622	Exact Sciences Corp.(b)		4,366
	209	Exactech, Inc.(b)		4,753
	138	ExamWorks Group, Inc.(b)		4,975
	1,022	Exelixis, Inc.(b)		4,711
	1,723	Fibrocell Science, Inc.(b)		4,755
	202	FibroGen, Inc.(b)		3,636
	101	Five Prime Therapeutics, Inc.(b)		4,807
	1,707	Five Star Quality Care, Inc.(b)		4,165
	378	Flex Pharma, Inc.(b)		4,143
	449	Flexion Therapeutics, Inc.(b)		4,670
	520	Fluidigm Corp.(b)		4,982
	646	Foamix Pharmaceuticals Ltd. (Israel)(b)		4,076
	229	Foundation Medicine, Inc.(b)		3,653
	3,624	Galena Biopharma, Inc.(b)		5,001
	1,621	Genesis Healthcare, Inc., Class A(b)		4,085
	792	GenMark Diagnostics, Inc.(b)		4,681
	1,006	Genocea Biosciences, Inc.(b)		4,426
	166	Genomic Health, Inc.(b)		4,362
	1,372	Geron Corp.(b)		4,047
	241	Glaukos Corp.(b)		4,540
	296	Global Blood Therapeutics, Inc.(b)		5,970
	168	Globus Medical, Inc., Class A(b)		4,207
	114	Greatbatch, Inc.(b)		3,967
	114	Haemonetics Corp.(b)		3,697
	444	Halozyme Therapeutics, Inc.(b)		4,684
	138	Halyard Health, Inc.(b)		3,886
	1,444	Harvard Bioscience, Inc.(b)		4,289
	170	HealthEquity, Inc.(b)		4,275
	108	HealthSouth Corp.		4,478
	236	HealthStream, Inc.(b)		5,338
	392	Healthways, Inc.(b)		4,567

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

50

PowerShares Russell 2000 Equal Weight Portfolio (EQWS) (continued)

April 30, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Health Care (continued)
	130	HeartWare International, Inc.(b)	$	4,337
	236	Heron Therapeutics, Inc.(b)		5,060
	139	Heska Corp.(b)		4,253
	293	HMS Holdings Corp.(b)		4,949
	39	ICU Medical, Inc.(b)		3,874
	1,960	Idera Pharmaceuticals, Inc.(b)		3,254
	641	Ignyta, Inc.(b)		4,436
	338	Immune Design Corp.(b)		4,610
	501	ImmunoGen, Inc.(b)		3,432
	1,587	Immunomedics, Inc.(b)		5,634
	122	Impax Laboratories, Inc.(b)		4,069
	327	Imprivata, Inc.(b)		3,963
	94	INC Research Holdings, Inc., Class A(b)		4,524
	776	Infinity Pharmaceuticals, Inc.(b)		4,501
	330	Innoviva, Inc.		4,072
	95	Inogen, Inc.(b)		4,642
	479	Inovio Pharmaceuticals, Inc.(b)		5,020
	333	Insmed, Inc.(b)		4,046
	123	Insulet Corp.(b)		4,096
	236	Insys Therapeutics, Inc.(b)		3,420
	59	Integra LifeSciences Holdings Corp.(b)		4,178
	238	Intersect ENT, Inc.(b)		4,772
	147	Intra-Cellular Therapies, Inc.(b)		5,045
	305	Invacare Corp.		3,428
	428	Invitae Corp.(b)		4,083
	553	InVivo Therapeutics Holdings Corp.(b)		3,318
	203	iRadimed Corp.(b)		3,323
	380	Ironwood Pharmaceuticals, Inc., Class A(b)		3,971
	300	K2M Group Holdings, Inc.(b)		4,878
	466	Karyopharm Therapeutics, Inc.(b)		4,334
	844	Keryx Biopharmaceuticals, Inc.(b)		4,591
	327	Kindred Healthcare, Inc.		4,827
	88	Kite Pharma, Inc.(b)		4,073
	204	La Jolla Pharmaceutical Co.(b)		3,776
	120	Landauer, Inc.		4,169
	223	Lannett Co., Inc.(b)		4,277
	187	LDR Holding Corp.(b)		5,040
	273	LeMaitre Vascular, Inc.		4,526
	331	Lexicon Pharmaceuticals, Inc.(b)		4,571
	110	LHC Group, Inc.(b)		4,437
	37	Ligand Pharmaceuticals, Inc.(b)		4,472
	846	Lion Biotechnologies, Inc.(b)		4,797
	72	LivaNova PLC(b)		3,797
	153	Loxo Oncology, Inc.(b)		3,527
	202	Luminex Corp.(b)		4,060
	241	MacroGenics, Inc.(b)		4,955
	58	Magellan Health, Inc.(b)		4,087
	2,357	MannKind Corp.(b)		3,182
	96	Masimo Corp.(b)		4,162
	902	Medgenics, Inc. (Israel)(b)		4,303
	127	Medicines Co. (The)(b)		4,520
	106	Medidata Solutions, Inc.(b)		4,625
	188	Meridian Bioscience, Inc.		3,593
	217	Merit Medical Systems, Inc.(b)		4,394
	494	Merrimack Pharmaceuticals, Inc.(b)		3,498
	471	MiMedx Group, Inc.(b)		3,547

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Health Care (continued)
	197	Mirati Therapeutics, Inc.(b)	$	4,082
	61	Molina Healthcare, Inc.(b)		3,157
	455	Momenta Pharmaceuticals, Inc.(b)		4,327
	417	MyoKardia, Inc.(b)		4,770
	107	Myriad Genetics, Inc.(b)		3,852
	240	NanoString Technologies, Inc.(b)		3,821
	446	NantKwest, Inc.(b)		3,697
	437	Natera, Inc.(b)		4,291
	63	National Healthcare Corp.		4,060
	259	National Research Corp., Class A		3,727
	102	Natus Medical, Inc.(b)		3,251
	4,075	Navidea Biopharmaceuticals, Inc.(b)		5,623
	304	Nektar Therapeutics(b)		4,767
	86	Neogen Corp.(b)		4,063
	616	NeoGenomics, Inc.(b)		5,014
	385	Neos Therapeutics, Inc.(b)		3,492
	108	Neurocrine Biosciences, Inc.(b)		4,923
	71	Nevro Corp.(b)		4,775
	231	NewLink Genetics Corp.(b)		3,745
	1,307	Nobilis Health Corp.(b)		5,516
	2,705	Northwest Biotherapeutics, Inc.(b)		3,787
	762	Novavax, Inc.(b)		3,993
	299	Novocure Ltd.(b)		3,857
	83	NuVasive, Inc.(b)		4,394
	842	Nuvectra Corp.(b)		7,077
	273	NxStage Medical, Inc.(b)		4,401
	443	Ocular Therapeutix, Inc.(b)		5,440
	264	Omeros Corp.(b)		3,498
	150	Omnicell, Inc.(b)		4,779
	406	OncoMed Pharmaceuticals, Inc.(b)		5,034
	3,461	Oncothyreon, Inc.(b)		4,499
	94	Ophthotech Corp.(b)		4,394
	564	OraSure Technologies, Inc.(b)		4,050
	7,359	Orexigen Therapeutics, Inc.(b)		3,289
	1,874	Organovo Holdings, Inc.(b)		5,097
	94	Orthofix International NV(b)		4,113
	765	Osiris Therapeutics, Inc.		4,292
	286	Otonomy, Inc.(b)		4,078
	396	OvaScience, Inc.(b)		3,318
	98	Owens & Minor, Inc.		3,566
	419	Oxford Immunotec Global PLC(b)		4,383
	482	Pacific Biosciences of California, Inc.(b)		4,651
	82	Pacira Pharmaceuticals, Inc.(b)		4,437
	261	Paratek Pharmaceuticals, Inc.(b)		3,555
	64	PAREXEL International Corp.(b)		3,910
	1,227	PDL BioPharma, Inc.		4,626
	87	Penumbra, Inc.(b)		4,741
	9,632	Peregrine Pharmaceuticals, Inc.(b)		3,411
	3,340	Pernix Therapeutics Holdings, Inc.(b)		2,505
	467	Pfenex, Inc.(b)		3,811
	184	PharMerica Corp.(b)		4,350
	150	Phibro Animal Health Corp., Class A		3,111
	202	Portola Pharmaceuticals, Inc.(b)		4,800
	92	PRA Health Sciences, Inc.(b)		4,365
	134	Press Ganey Holdings, Inc.(b)		4,083
	75	Prestige Brands Holdings, Inc.(b)		4,258

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

51

PowerShares Russell 2000 Equal Weight Portfolio (EQWS) (continued)

April 30, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Health Care (continued)
	946	Progenics Pharmaceuticals, Inc.(b)	$	5,023
	542	Proteon Therapeutics, Inc.(b)		5,290
	95	Prothena Corp. PLC (Ireland)(b)		4,103
	77	Providence Service Corp. (The)(b)		3,838
	697	PTC Therapeutics, Inc.(b)		5,172
	270	Quality Systems, Inc.		3,802
	230	Quidel Corp.(b)		3,979
	127	Radius Health, Inc.(b)		4,521
	799	RadNet, Inc.(b)		4,035
	879	Raptor Pharmaceutical Corp.(b)		4,316
	399	REGENXBIO, Inc.(b)		4,158
	623	Regulus Therapeutics, Inc.(b)		3,638
	297	Relypsa, Inc.(b)		5,376
	155	Repligen Corp.(b)		4,129
	312	Retrophin, Inc.(b)		4,299
	229	Revance Therapeutics, Inc.(b)		4,209
	1,856	Rigel Pharmaceuticals, Inc.(b)		5,252
	596	Rockwell Medical, Inc.(b)		5,513
	1,035	RTI Surgical, Inc.(b)		4,130
	125	Sage Therapeutics, Inc.(b)		4,711
	331	Sagent Pharmaceuticals, Inc.(b)		3,853
	717	Sangamo BioSciences, Inc.(b)		4,517
	214	Sarepta Therapeutics, Inc.(b)		3,037
	411	SciClone Pharmaceuticals, Inc.(b)		5,425
	270	SeaSpine Holdings Corp.(b)		4,028
	800	Second Sight Medical Products, Inc.(b)		3,784
	338	Select Medical Holdings Corp.(b)		4,522
	2,744	Sequenom, Inc.(b)		3,512
	157	Seres Therapeutics, Inc.(b)		4,635
	570	Sientra, Inc.(b)		4,628
	781	Sorrento Therapeutics, Inc.(b)		5,358
	120	Spark Therapeutics, Inc.(b)		4,307
	267	Spectranetics Corp. (The)(b)		4,539
	662	Spectrum Pharmaceuticals, Inc.(b)		4,694
	543	STAAR Surgical Co.(b)		4,187
	883	Stemline Therapeutics, Inc.(b)		4,856
	55	STERIS PLC		3,887
	383	Sucampo Pharmaceuticals, Inc., Class A(b)		4,129
	272	Supernus Pharmaceuticals, Inc.(b)		4,668
	275	Surgery Partners, Inc.(b)		4,480
	87	Surgical Care Affiliates, Inc.(b)		4,206
	217	SurModics, Inc.(b)		4,366
	1,439	Synergy Pharmaceuticals, Inc.(b)		4,518
	451	T2 Biosystems, Inc.(b)		4,136
	481	Tandem Diabetes Care, Inc.(b)		5,354
	95	Team Health Holdings, Inc.(b)		3,974
	404	Teladoc, Inc.(b)		4,909
	800	Teligent, Inc.(b)		4,416
	84	TESARO, Inc.(b)		3,481
	939	Tetraphase Pharmaceuticals, Inc.(b)		5,258
	466	TG Therapeutics, Inc.(b)		4,245
	620	TherapeuticsMD, Inc.(b)		5,115
	222	Theravance Biopharma, Inc. (Cayman Islands)(b)		4,607
	750	Tokai Pharmaceuticals, Inc.(b)		5,498
	881	TransEnterix, Inc.(b)		1,322
	507	Trevena, Inc.(b)		3,950

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Health Care (continued)
	158	Triple-S Management Corp., Class B(b)	$	4,114
	752	Trovagene, Inc.(b)		3,023
	81	U.S. Physical Therapy, Inc.		4,039
	68	Ultragenyx Pharmaceutical, Inc.(b)		4,598
	5,443	Unilife Corp.(b)		2,993
	545	Universal American Corp.		4,055
	62	Utah Medical Products, Inc.		4,148
	514	Vanda Pharmaceuticals, Inc.(b)		4,575
	124	Vascular Solutions, Inc.(b)		4,334
	739	Veracyte, Inc.(b)		4,286
	2,783	Verastem, Inc.(b)		4,592
	585	Versartis, Inc.(b)		5,300
	640	Vitae Pharmaceuticals, Inc.(b)		4,602
	441	Vital Therapies, Inc.(b)		3,779
	3,399	VIVUS, Inc.(b)		5,608
	394	Vocera Communications, Inc.(b)		4,618
	439	Voyager Therapeutics, Inc.(b)		5,114
	739	vTv Therapeutics, Inc., Class A(b)		4,656
	42	WellCare Health Plans, Inc.(b)		3,780
	58	West Pharmaceutical Services, Inc.		4,130
	240	Wright Medical Group NV(b)		4,507
	375	XBiotech, Inc.(b)		4,781
	321	Xencor, Inc.(b)		3,932
	835	XenoPort, Inc.(b)		3,674
	5,289	XOMA Corp.(b)		4,330
	677	Zafgen, Inc.(b)		4,312
	152	Zeltiq Aesthetics, Inc.(b)		4,545
	552	ZIOPHARM Oncology, Inc.(b)		4,339
	423	Zogenix, Inc.(b)		4,336
	410	Zynerba Pharmaceuticals, Inc.(b)		3,342
				1,566,287
		Industrials—13.5%
	472	AAON, Inc.		12,517
	255	AAR Corp.		6,130
	183	ABM Industries, Inc.		5,887
	1,338	Acacia Research Corp.		6,449
	678	ACCO Brands Corp.(b)		6,468
	3,704	Accuride Corp.(b)		6,001
	237	Actuant Corp., Class A		6,330
	611	Advanced Drainage Systems, Inc.		14,126
	188	Advisory Board Co. (The)(b)		5,948
	276	Aegion Corp.(b)		5,860
	365	Aerojet Rocketdyne Holdings, Inc.(b)		6,614
	210	Aerovironment, Inc.(b)		6,065
	380	Air Transport Services Group, Inc.(b)		5,354
	270	Aircastle Ltd.		5,859
	103	Alamo Group, Inc.		5,813
	156	Albany International Corp., Class A		6,285
	33	Allegiant Travel Co.		5,299
	339	Allied Motion Technologies, Inc.		7,305
	213	Altra Industrial Motion Corp.		6,113
	141	American Railcar Industries, Inc.		5,782
	186	American Science & Engineering, Inc.		5,329
	67	American Woodmark Corp.(b)		4,880
	292	Apogee Enterprises, Inc.		12,101
	135	Applied Industrial Technologies, Inc.		6,187

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

52

PowerShares Russell 2000 Equal Weight Portfolio (EQWS) (continued)

April 30, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrials (continued)
	1,249	ARC Document Solutions, Inc.(b)	$	5,146
	260	ArcBest Corp.		4,963
	170	Argan, Inc.		5,811
	129	Astec Industries, Inc.		6,244
	162	Astronics Corp.(b)		5,986
	143	Atlas Air Worldwide Holdings, Inc.(b)		5,711
	104	AZZ, Inc.		5,712
	167	Barnes Group, Inc.		5,426
	212	Barrett Business Services, Inc.		6,574
	314	Beacon Roofing Supply, Inc.(b)		13,417
	557	Blue Bird Corp.(b)		6,021
	785	BMC Stock Holdings, Inc.(b)		13,777
	216	Brady Corp., Class A		5,722
	253	Briggs & Stratton Corp.		5,356
	177	Brink’s Co. (The)		5,990
	1,228	Builders FirstSource, Inc.(b)		13,619
	627	CAI International, Inc.(b)		6,408
	864	Casella Waste Systems, Inc., Class A(b)		6,186
	586	CBIZ, Inc.(b)		5,965
	960	CDI Corp.		6,864
	92	CEB, Inc.		5,675
	938	CECO Environmental Corp.		6,191
	545	Celadon Group, Inc.		5,488
	284	Chart Industries, Inc.(b)		7,310
	126	CIRCOR International, Inc.		7,113
	19,367	Civeo Corp.(b)		29,438
	101	CLARCOR, Inc.		5,936
	377	Columbus McKinnon Corp.		6,224
	414	Comfort Systems USA, Inc.		12,209
	2,275	Commercial Vehicle Group, Inc.(b)		5,847
	698	Continental Building Products, Inc.(b)		13,688
	247	Covenant Transportation Group, Inc., Class A(b)		4,918
	298	CRA International, Inc.(b)		6,467
	150	Cubic Corp.		6,236
	78	Curtiss-Wright Corp.		5,973
	96	Deluxe Corp.		6,027
	302	DigitalGlobe, Inc.(b)		6,692
	257	Douglas Dynamics, Inc.		5,888
	372	Ducommun, Inc.(b)		5,919
	334	DXP Enterprises, Inc.(b)		7,298
	93	Dycom Industries, Inc.(b)		6,566
	219	Echo Global Logistics, Inc.(b)		5,118
	121	EMCOR Group, Inc.		5,866
	152	Encore Wire Corp.		5,814
	104	EnerSys		6,070
	333	Engility Holdings, Inc.(b)		6,550
	297	Ennis, Inc.		5,803
	101	EnPro Industries, Inc.		5,917
	151	ESCO Technologies, Inc.		5,810
	188	Essendant, Inc.		5,789
	90	Esterline Technologies Corp.(b)		6,179
	463	ExOne Co. (The)(b)		6,121
	117	Exponent, Inc.		5,831
	454	Federal Signal Corp.		6,215
	130	Forward Air Corp.		5,925
	285	Franklin Covey Co.(b)		4,694

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrials (continued)
	184	Franklin Electric Co., Inc.	$	5,813
	379	FreightCar America, Inc.		6,500
	171	FTI Consulting, Inc.(b)		6,891
	3,504	FuelCell Energy, Inc.(b)		20,884
	81	G&K Services, Inc., Class A		5,723
	161	Generac Holdings, Inc.(b)		6,137
	543	General Cable Corp.		8,493
	476	Gibraltar Industries, Inc.(b)		12,590
	510	Global Brass & Copper Holdings, Inc.		13,821
	232	Gorman-Rupp Co. (The)		6,563
	222	GP Strategies Corp.(b)		5,181
	315	Graham Corp.		5,831
	126	Granite Construction, Inc.		5,618
	1,356	Great Lakes Dredge & Dock Corp.(b)		6,197
	216	Greenbrier Cos., Inc. (The)		6,478
	832	Griffon Corp.		13,154
	334	H&E Equipment Services, Inc.		6,757
	1,090	Harsco Corp.		7,728
	126	Hawaiian Holdings, Inc.(b)		5,301
	1,675	HC2 Holdings, Inc.(b)		6,466
	162	Healthcare Services Group, Inc.		6,132
	311	Heartland Express, Inc.		5,632
	98	HEICO Corp.		6,008
	250	Heidrick & Struggles International, Inc.		4,933
	636	Heritage-Crystal Clean, Inc.(b)		6,614
	192	Herman Miller, Inc.		5,793
	1,794	Hill International, Inc.(b)		7,607
	202	Hillenbrand, Inc.		6,123
	154	HNI Corp.		6,733
	149	Hub Group, Inc., Class A(b)		5,739
	190	Hurco Cos., Inc.		6,152
	103	Huron Consulting Group, Inc.(b)		5,728
	88	Hyster-Yale Materials Handling, Inc., Class A		5,390
	171	ICF International, Inc.(b)		6,732
	781	InnerWorkings, Inc.(b)		6,381
	113	Insperity, Inc.		5,963
	434	Insteel Industries, Inc.		12,582
	708	Interface, Inc.		12,050
	105	John Bean Technologies Corp.		5,475
	131	Kadant, Inc.		6,203
	138	Kaman Corp.		5,808
	328	Kelly Services, Inc., Class A		6,157
	777	KEYW Holding Corp. (The)(b)		5,354
	313	Kforce, Inc.		5,950
	506	Kimball International, Inc., Class B		5,890
	182	KLX, Inc.(b)		6,137
	227	Knight Transportation, Inc.		6,031
	281	Knoll, Inc.		6,561
	206	Korn/Ferry International		5,591
	1,237	Kratos Defense & Security Solutions, Inc.(b)		6,568
	629	Lawson Products, Inc.(b)		12,322
	780	LB Foster Co., Class A		15,350
	75	Lindsay Corp.		5,735
	1,173	LSI Industries, Inc.		14,838
	179	Lydall, Inc.(b)		6,585
	323	Marten Transport Ltd.		6,027

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

53

PowerShares Russell 2000 Equal Weight Portfolio (EQWS) (continued)

April 30, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrials (continued)
	201	Masonite International Corp.(b)	$	13,600
	291	MasTec, Inc.(b)		6,594
	151	Matson, Inc.		5,871
	94	Matthews International Corp., Class A		4,948
	236	McGrath RentCorp		5,754
	261	Mercury Systems, Inc.(b)		5,486
	622	Meritor, Inc.(b)		5,287
	358	Milacron Holdings Corp.(b)		6,133
	295	Miller Industries, Inc.		6,272
	227	Mistras Group, Inc.(b)		5,532
	187	Mobile Mini, Inc.		6,031
	131	Moog, Inc., Class A(b)		6,401
	960	MRC Global, Inc.(b)		13,421
	122	MSA Safety, Inc.		5,867
	442	Mueller Industries, Inc.		13,950
	1,333	Mueller Water Products, Inc., Class A		14,330
	113	Multi-Color Corp.		6,761
	232	MYR Group, Inc.(b)		5,918
	55	National Presto Industries, Inc.		4,795
	375	Navigant Consulting, Inc.(b)		5,985
	5,159	Navios Maritime Holdings, Inc. (Monaco)		6,036
	477	Navistar International Corp.(b)		7,198
	935	NCI Building Systems, Inc.(b)		13,782
	830	Neff Corp., Class A(b)		7,097
	1,010	NN, Inc.		15,190
	270	Nortek, Inc.(b)		12,733
	219	NV5 Global, Inc.(b)		5,438
	364	Omega Flex, Inc.		11,990
	165	On Assignment, Inc.(b)		5,950
	1,129	Orion Marine Group, Inc.(b)		6,593
	191	P.A.M. Transportation Services, Inc.(b)		4,720
	141	Park-Ohio Holdings Corp.		3,588
	272	Patrick Industries, Inc.(b)		12,471
	1,362	PGT, Inc.(b)		14,260
	2,875	Plug Power, Inc.(b)		5,923
	943	Ply Gem Holdings, Inc.(b)		13,815
	197	Powell Industries, Inc.		6,131
	500	Power Solutions International, Inc.(b)		6,475
	1,276	PowerSecure International, Inc.(b)		23,887
	162	Preformed Line Products Co.		6,799
	241	Primoris Services Corp.		5,637
	76	Proto Labs, Inc.(b)		4,547
	469	Quad Graphics, Inc., Class A		5,886
	747	Quanex Building Products Corp.		14,073
	1,637	Radiant Logistics, Inc.(b)		6,450
	367	Raven Industries, Inc.		5,905
	175	RBC Bearings, Inc.(b)		12,828
	381	Resources Connection, Inc.		5,627
	650	Rexnord Corp.(b)		14,170
	473	Roadrunner Transportation Systems, Inc.(b)		5,591
	540	RPX Corp.(b)		5,983
	325	Rush Enterprises, Inc., Class A(b)		6,399
	210	Saia, Inc.(b)		6,073
	1,829	Scorpio Bulkers, Inc.(b)		7,042
	346	Simpson Manufacturing Co., Inc.		13,010
	300	SkyWest, Inc.		7,050

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrials (continued)
	244	SP Plus Corp.(b)	$	5,436
	287	Sparton Corp.(b)		6,159
	77	Standex International Corp.		5,905
	394	Steelcase, Inc., Class A		6,012
	175	Sun Hydraulics Corp.		6,192
	329	Swift Transportation Co., Class A(b)		5,468
	428	TAL International Group, Inc.		7,319
	316	TASER International, Inc.(b)		5,770
	196	Team, Inc.(b)		5,631
	67	Teledyne Technologies, Inc.(b)		6,228
	113	Tennant Co.		6,035
	201	Tetra Tech, Inc.		5,909
	431	Textainer Group Holdings Ltd.		6,650
	329	Thermon Group Holdings, Inc.(b)		6,165
	1,076	Titan International, Inc.		7,134
	506	Titan Machinery, Inc.(b)		6,578
	860	TRC Cos., Inc.(b)		7,362
	273	Trex Co., Inc.(b)		12,954
	332	TriMas Corp.(b)		6,009
	428	TriNet Group, Inc.(b)		7,113
	238	TrueBlue, Inc.(b)		4,448
	385	Tutor Perini Corp.(b)		6,091
	569	Twin Disc, Inc.		7,539
	61	UniFirst Corp.		6,611
	761	Univar, Inc.(b)		13,241
	154	Universal Forest Products, Inc.		11,804
	349	Universal Logistics Holdings, Inc.		4,977
	139	US Ecology, Inc.		6,259
	339	USA Truck, Inc.(b)		6,007
	269	Vectrus, Inc.(b)		5,800
	331	Veritiv Corp.(b)		13,578
	162	Viad Corp.		4,820
	598	Vicor Corp.(b)		5,735
	153	Virgin America, Inc.(b)		8,521
	805	Volt Information Sciences, Inc.(b)		6,046
	87	VSE Corp.		5,397
	447	Wabash National Corp.(b)		6,370
	118	WageWorks, Inc.(b)		6,355
	107	Watts Water Technologies, Inc., Class A		5,978
	218	Werner Enterprises, Inc.		5,524
	414	Wesco Aircraft Holdings, Inc.(b)		5,974
	1,047	West Corp.		22,437
	111	Woodward, Inc.		6,017
	1,160	Xerium Technologies, Inc.(b)		6,136
	186	XPO Logistics, Inc.(b)		5,606
	632	YRC Worldwide, Inc.(b)		5,814
				1,767,802
		Information Technology—13.1%
	867	A10 Networks, Inc.(b)		5,176
	266	ACI Worldwide, Inc.(b)		5,317
	571	Actua Corp.(b)		5,413
	243	Acxiom Corp.(b)		5,339
	261	ADTRAN, Inc.		5,043
	173	Advanced Energy Industries, Inc.(b)		5,597
	1,828	Advanced Micro Devices, Inc.(b)		6,489
	1,009	Aerohive Networks, Inc.(b)		5,852

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

54

PowerShares Russell 2000 Equal Weight Portfolio (EQWS) (continued)

April 30, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	501	Agilysys, Inc.(b)	$	5,351
	230	Alarm.com Holdings, Inc.(b)		5,246
	356	Alliance Fiber Optic Products, Inc.(b)		6,593
	471	Alpha & Omega Semiconductor Ltd.(b)		6,118
	125	Ambarella, Inc.(b)		5,138
	948	Amber Road, Inc.(b)		4,655
	582	American Software, Inc., Class A		5,319
	918	Amkor Technology, Inc.(b)		5,242
	578	Angie’s List, Inc.(b)		5,057
	101	Anixter International, Inc.(b)		6,292
	629	Apigee Corp.(b)		6,101
	419	AppFolio, Inc., Class A(b)		5,254
	791	Applied Micro Circuits Corp.(b)		4,936
	334	Applied Optoelectronics, Inc.(b)		3,741
	146	Aspen Technology, Inc.(b)		5,552
	261	AVG Technologies NV(b)		5,168
	825	Avid Technology, Inc.(b)		4,603
	417	AVX Corp.		5,513
	1,890	Axcelis Technologies, Inc.(b)		5,405
	89	Badger Meter, Inc.		6,348
	565	Bankrate, Inc.(b)		5,164
	340	Barracuda Networks, Inc.(b)		5,991
	1,656	Bazaarvoice, Inc.(b)		5,548
	356	Bel Fuse, Inc., Class B		5,931
	217	Belden, Inc.		13,701
	229	Benchmark Electronics, Inc.(b)		4,447
	167	Benefitfocus, Inc.(b)		6,329
	370	Black Box Corp.		5,409
	84	Blackbaud, Inc.		5,189
	90	Blackhawk Network Holdings, Inc.(b)		2,892
	1,068	Blucora, Inc.(b)		8,555
	175	Bottomline Technologies (de), Inc.(b)		4,298
	412	Box, Inc., Class A(b)		5,327
	847	Brightcove, Inc.(b)		5,124
	136	BroadSoft, Inc.(b)		5,326
	513	Brooks Automation, Inc.		4,853
	320	Cabot Microelectronics Corp.		13,405
	51	CACI International, Inc., Class A(b)		4,904
	296	CalAmp Corp.(b)		4,431
	753	Calix, Inc.(b)		5,218
	329	Callidus Software, Inc.(b)		6,021
	660	Carbonite, Inc.(b)		4,976
	84	Cardtronics, Inc.(b)		3,311
	770	Care.com, Inc.(b)		5,729
	246	Cascade Microtech, Inc.(b)		5,144
	57	Cass Information Systems, Inc.		2,820
	84	Cavium, Inc.(b)		4,147
	246	CEVA, Inc.(b)		5,673
	479	ChannelAdvisor Corp.(b)		5,968
	501	Checkpoint Systems, Inc.(b)		5,070
	2,456	Ciber, Inc.(b)		5,698
	278	Ciena Corp.(b)		4,679
	53	Cimpress NV (Netherlands)(b)		4,657
	147	Cirrus Logic, Inc.(b)		5,307
	335	Clearfield, Inc.(b)		6,218
	57	Coherent, Inc.(b)		5,324

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	439	Cohu, Inc.	$	5,075
	127	CommVault Systems, Inc.(b)		5,559
	170	comScore, Inc.(b)		5,205
	223	Comtech Telecommunications Corp.		5,397
	733	Control4 Corp.(b)		5,432
	214	Convergys Corp.		5,671
	159	Cornerstone OnDemand, Inc.(b)		5,462
	375	CPI Card Group, Inc.		2,974
	126	Cray, Inc.(b)		4,772
	117	CSG Systems International, Inc.		5,192
	333	CTS Corp.		5,518
	240	Cvent, Inc.(b)		8,484
	640	Daktronics, Inc.		5,568
	612	Datalink Corp.(b)		4,914
	141	Demandware, Inc.(b)		6,497
	757	DHI Group, Inc.(b)		5,382
	176	Diebold, Inc.		4,624
	587	Digi International, Inc.(b)		6,205
	166	Digimarc Corp.(b)		4,955
	4,621	Digital Turbine, Inc.(b)		3,974
	263	Diodes, Inc.(b)		4,897
	580	DSP Group, Inc.(b)		5,510
	234	DTS, Inc.(b)		5,106
	923	EarthLink Holdings Corp.		5,363
	421	Eastman Kodak Co.(b)		4,976
	129	Ebix, Inc.		6,207
	648	Electro Rent Corp.		6,486
	140	Electronics for Imaging, Inc.(b)		5,578
	60	Ellie Mae, Inc.(b)		5,016
	1,019	EMCORE Corp.(b)		5,808
	532	Endurance International Group Holdings, Inc.(b)		5,698
	3,241	EnerNOC, Inc.(b)		22,104
	396	Entegris, Inc.(b)		5,263
	199	Envestnet, Inc.(b)		6,245
	70	EPAM Systems, Inc.(b)		5,105
	366	EPIQ Systems, Inc.		5,406
	65	ePlus, Inc.(b)		5,225
	41	Euronet Worldwide, Inc.(b)		3,161
	1,354	Everi Holdings, Inc.(b)		2,275
	220	EVERTEC, Inc.		2,963
	968	Everyday Health, Inc.(b)		5,614
	970	Exar Corp.(b)		5,917
	115	ExlService Holdings, Inc.(b)		5,565
	1,629	Extreme Networks, Inc.(b)		5,718
	166	Fabrinet (Thailand)(b)		5,307
	29	Fair Isaac Corp.		3,095
	254	Fairchild Semiconductor International, Inc.(b)		5,080
	187	FARO Technologies, Inc.(b)		5,430
	59	FEI Co.		5,252
	280	Finisar Corp.(b)		4,609
	544	Five9, Inc.(b)		5,032
	132	Fleetmatics Group PLC(b)		4,785
	680	FormFactor, Inc.(b)		5,236
	174	Forrester Research, Inc.		5,850
	165	Gigamon, Inc.(b)		5,377
	171	Globant SA(b)		6,069

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

55

PowerShares Russell 2000 Equal Weight Portfolio (EQWS) (continued)

April 30, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	1,890	Glu Mobile, Inc.(b)	$	5,046
	2,183	Gogo, Inc.(b)		23,118
	221	GrubHub, Inc.(b)		5,795
	361	GSI Group, Inc.(b)		5,253
	325	GTT Communications, Inc.(b)		5,193
	1,199	Guidance Software, Inc.(b)		6,115
	95	Guidewire Software, Inc.(b)		5,412
	398	Hackett Group, Inc. (The)		5,922
	1,593	Harmonic, Inc.(b)		5,512
	487	Hortonworks, Inc.(b)		5,635
	110	HubSpot, Inc.(b)		4,872
	245	II-VI, Inc.(b)		5,113
	3,344	Imation Corp.(b)		5,250
	624	Immersion Corp.(b)		4,561
	107	Imperva, Inc.(b)		4,973
	2,529	inContact, Inc.(b)		23,545
	334	Infinera Corp.(b)		3,971
	308	Infoblox, Inc.(b)		5,153
	154	Inphi Corp.(b)		4,569
	182	Insight Enterprises, Inc.(b)		4,497
	277	Instructure, Inc.(b)		5,579
	256	Integrated Device Technology, Inc.(b)		4,936
	149	Interactive Intelligence Group, Inc.(b)		5,538
	96	InterDigital, Inc.		5,470
	2,009	Internap Corp.(b)		4,581
	386	Intersil Corp., Class A		4,512
	649	Intralinks Holdings, Inc.(b)		5,783
	645	InvenSense, Inc.(b)		4,954
	142	Itron, Inc.(b)		5,839
	435	Ixia(b)		4,402
	442	IXYS Corp.		4,774
	382	j2 Global, Inc.		24,265
	1,432	Jive Software, Inc.(b)		5,828
	436	Kimball Electronics, Inc.(b)		4,770
	401	Knowles Corp.(b)		5,361
	3,217	Kopin Corp.(b)		5,340
	540	KVH Industries, Inc.(b)		5,270
	870	Lattice Semiconductor Corp.(b)		4,846
	3,138	Limelight Networks, Inc.(b)		5,491
	1,079	Lionbridge Technologies, Inc.(b)		5,384
	1,156	Liquidity Services, Inc.(b)		6,450
	49	Littelfuse, Inc.		5,708
	901	LivePerson, Inc.(b)		5,451
	103	LogMeIn, Inc.(b)		6,149
	95	Luxoft Holding, Inc., Class A(b)		5,492
	121	M/A-Com Technology Solutions Holdings, Inc.(b)		4,948
	96	Manhattan Associates, Inc.(b)		5,812
	163	ManTech International Corp., Class A		5,509
	1,074	Marchex, Inc., Class B		4,564
	1,706	Marin Software, Inc.(b)		4,367
	271	Marketo, Inc.(b)		5,959
	1,396	Mattson Technology, Inc.(b)		5,095
	115	MAXIMUS, Inc.		6,083
	285	MaxLinear, Inc., Class A(b)		4,774
	260	Mentor Graphics Corp.		5,190
	62	Mesa Laboratories, Inc.		6,248

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	187	Methode Electronics, Inc.	$	5,560
	133	Microsemi Corp.(b)		4,494
	34	MicroStrategy, Inc., Class A(b)		6,097
	385	MINDBODY, Inc., Class A(b)		5,240
	140	MKS Instruments, Inc.		5,020
	1,202	Mobileiron, Inc.(b)		4,604
	488	Model N, Inc.(b)		5,212
	3,279	ModusLink Global Solutions, Inc.(b)		4,787
	503	MoneyGram International, Inc.(b)		3,093
	83	Monolithic Power Systems, Inc.		5,181
	221	Monotype Imaging Holdings, Inc.		4,869
	1,829	Monster Worldwide, Inc.(b)		5,853
	99	MTS Systems Corp.		5,566
	222	Multi-Fineline Electronix, Inc.(b)		5,106
	368	Nanometrics, Inc.(b)		6,572
	381	NeoPhotonics Corp.(b)		4,568
	129	NETGEAR, Inc.(b)		5,470
	233	NetScout Systems, Inc.(b)		5,187
	189	NeuStar, Inc., Class A(b)		4,440
	213	New Relic, Inc.(b)		5,491
	292	NIC, Inc.		5,171
	708	Nimble Storage, Inc.(b)		5,225
	3,322	Novatel Wireless, Inc.(b)		5,083
	92	NVE Corp.		5,279
	1,013	Oclaro, Inc.(b)		5,116
	755	OPOWER,Inc.(b)		5,964
	92	OSI Systems, Inc.(b)		4,682
	565	Park City Group, Inc.(b)		5,368
	332	Park Electrochemical Corp.		5,415
	149	Paycom Software, Inc.(b)		5,693
	188	Paylocity Holding Corp.(b)		7,195
	212	PC Connection, Inc.		5,039
	381	PDF Solutions, Inc.(b)		5,124
	209	Pegasystems, Inc.		5,516
	248	Perficient, Inc.(b)		5,178
	464	PFSweb, Inc.(b)		6,542
	501	Photronics, Inc.(b)		5,301
	135	Plantronics, Inc.		5,191
	133	Plexus Corp.(b)		5,554
	470	Polycom, Inc.(b)		5,617
	106	Power Integrations, Inc.		5,115
	209	Progress Software Corp.(b)		5,334
	99	Proofpoint, Inc.(b)		5,768
	458	PROS Holdings, Inc.(b)		5,386
	379	Pure Storage, Inc., Class A(b)		5,514
	232	Q2 Holdings, Inc.(b)		5,547
	251	QAD, Inc., Class A		4,922
	174	Qlik Technologies, Inc.(b)		5,357
	391	QLogic Corp.(b)		5,118
	206	Qualys, Inc.(b)		5,187
	9,070	Quantum Corp.(b)		4,175
	1,374	QuinStreet, Inc.(b)		4,836
	456	Quotient Technology, Inc.(b)		5,299
	377	Rambus, Inc.(b)		4,381
	392	Rapid7, Inc.(b)		4,908
	1,268	RealNetworks, Inc.(b)		5,782

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

56

PowerShares Russell 2000 Equal Weight Portfolio (EQWS) (continued)

April 30, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	253	RealPage, Inc.(b)	$	5,563
	221	Reis, Inc.		5,563
	679	RetailMeNot, Inc.(b)		5,724
	353	RingCentral, Inc., Class A(b)		6,735
	1,603	Rocket Fuel, Inc.(b)		4,585
	159	Rofin-Sinar Technologies, Inc.(b)		5,118
	86	Rogers Corp.(b)		4,933
	259	Rovi Corp.(b)		4,564
	289	Rubicon Project, Inc. (The)(b)		5,598
	515	Ruckus Wireless, Inc.(b)		7,076
	394	Rudolph Technologies, Inc.(b)		5,465
	226	Sanmina Corp.(b)		5,345
	446	Sapiens International Corp. NV (Israel)		5,254
	130	ScanSource, Inc.(b)		5,288
	109	Science Applications International Corp.		5,787
	387	SciQuest, Inc.(b)		5,348
	966	SeaChange International, Inc.(b)		3,603
	233	Semtech Corp.(b)		5,042
	1,406	ServiceSource International, Inc.(b)		5,666
	713	ShoreTel, Inc.(b)		4,364
	130	Shutterstock, Inc.(b)		5,333
	813	Sigma Designs, Inc.(b)		5,146
	759	Silicon Graphics International Corp.(b)		3,400
	117	Silicon Laboratories, Inc.(b)		5,476
	371	Silver Spring Networks, Inc.(b)		5,213
	714	Sonus Networks, Inc.(b)		5,898
	127	SPS Commerce, Inc.(b)		6,468
	42	Stamps.com, Inc.(b)		3,459
	212	Stratasys Ltd.(b)		5,188
	156	Super Micro Computer, Inc.(b)		4,198
	198	Sykes Enterprises, Inc.(b)		5,772
	70	Synaptics, Inc.(b)		5,009
	164	Synchronoss Technologies, Inc.(b)		5,095
	53	SYNNEX Corp.		4,376
	104	Syntel, Inc.(b)		4,423
	520	Systemax, Inc.(b)		4,706
	144	Take-Two Interactive Software, Inc.(b)		4,922
	670	Tangoe, Inc.(b)		5,909
	67	Tech Data Corp.(b)		4,602
	725	TechTarget, Inc.(b)		5,626
	886	Telenav, Inc.(b)		5,050
	211	TeleTech Holdings, Inc.		5,864
	168	Tessera Technologies, Inc.		4,825
	278	Textura Corp.(b)		7,336
	487	TiVo, Inc.(b)		4,860
	354	Travelport Worldwide Ltd.		4,938
	661	Travelzoo, Inc.(b)		5,043
	970	TrueCar, Inc.(b)		6,635
	776	TTM Technologies, Inc.(b)		5,060
	396	TubeMogul, Inc.(b)		5,132
	41	Tyler Technologies, Inc.(b)		6,003
	158	Ubiquiti Networks, Inc.(b)		5,628
	997	Ultra Clean Holdings, Inc.(b)		5,673
	240	Ultratech, Inc.(b)		5,206
	679	Unisys Corp.(b)		5,235
	434	United Online, Inc.(b)		4,700

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	100	Universal Display Corp.(b)	$	5,831
	289	Varonis Systems, Inc.(b)		5,534
	338	VASCO Data Security International, Inc.(b)		5,858
	288	Veeco Instruments, Inc.(b)		5,302
	146	Verint Systems, Inc.(b)		4,941
	70	ViaSat, Inc.(b)		5,369
	1,103	VirnetX Holding Corp.(b)		4,952
	151	Virtusa Corp.(b)		5,367
	423	Vishay Intertechnology, Inc.		5,144
	416	Vishay Precision Group, Inc.(b)		6,223
	264	Web.com Group, Inc.(b)		5,277
	66	WebMD Health Corp.(b)		4,141
	257	Wix.com Ltd. (Israel)(b)		6,353
	449	Workiva, Inc., Class A(b)		5,348
	811	Xactly Corp.(b)		6,537
	882	Xcerra Corp.(b)		5,204
	291	XO Group, Inc.(b)		5,139
	269	Xura, Inc.(b)		6,023
	259	Zendesk, Inc.(b)		5,853
	1,345	Zix Corp.(b)		5,017
				1,711,790
		Materials—7.9%
	494	A. Schulman, Inc.		13,778
	198	AEP Industries, Inc.		12,203
	3,052	AK Steel Holding Corp.(b)		14,283
	802	American Vanguard Corp.(b)		13,273
	589	Axiall Corp.		13,871
	210	Balchem Corp.		12,886
	361	Berry Plastics Group, Inc.(b)		13,003
	665	Boise Cascade Co.(b)		13,879
	897	Calgon Carbon Corp.		14,702
	366	Carpenter Technology Corp.		12,960
	1,782	Century Aluminum Co.(b)		15,717
	251	Chase Corp.		14,129
	499	Chemtura Corp.(b)		13,897
	268	Clearwater Paper Corp.(b)		16,010
	4,529	Cliffs Natural Resources, Inc.(b)		23,868
	2,323	Coeur Mining, Inc.(b)		18,816
	761	Commercial Metals Co.		13,637
	214	Deltic Timber Corp.		13,375
	1,082	Ferro Corp.(b)		13,785
	1,483	Ferroglobal PLC		15,112
	3,363	Flotek Industries, Inc.(b)		31,780
	1,108	FutureFuel Corp.		12,454
	402	Greif, Inc., Class A		13,949
	304	H.B. Fuller Co.		13,595
	362	Hawkins, Inc.		14,165
	342	Haynes International, Inc.		12,835
	661	Headwaters, Inc.(b)		13,227
	4,698	Hecla Mining Co.		20,248
	433	Innophos Holdings, Inc.		16,004
	289	Innospec, Inc.		13,976
	151	Kaiser Aluminum Corp.		14,319
	974	KapStone Paper and Packaging Corp.		15,477
	556	KMG Chemicals, Inc.		13,172
	572	Koppers Holdings, Inc.(b)		14,374

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

57

PowerShares Russell 2000 Equal Weight Portfolio (EQWS) (continued)

April 30, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Materials (continued)
	775	Kraton Performance Polymers, Inc.(b)	$	17,600
	2,375	Kronos Worldwide, Inc.		15,794
	802	Louisiana-Pacific Corp.(b)		13,634
	1,014	LSB Industries, Inc.(b)		13,344
	485	Materion Corp.		14,060
	234	Minerals Technologies, Inc.		14,017
	775	Multi Packaging Solutions International Ltd.(b)		12,881
	986	Myers Industries, Inc.		13,291
	205	Neenah Paper, Inc.		13,343
	764	Olin Corp.		16,648
	772	Olympic Steel, Inc.		17,463
	2,389	OMNOVA Solutions, Inc.(b)		17,081
	641	P.H. Glatfelter Co.		14,698
	425	PolyOne Corp.		15,292
	151	Quaker Chemical Corp.		13,448
	1,353	Rayonier Advanced Materials, Inc.		13,868
	364	Real Industry, Inc.(b)		3,218
	651	Schnitzer Steel Industries, Inc., Class A		13,424
	411	Schweitzer-Mauduit International, Inc.		14,134
	4,629	Senomyx, Inc.(b)		11,341
	203	Sensient Technologies Corp.		13,652
	12,260	Solazyme, Inc.(b)		28,688
	233	Stepan Co.		14,281
	1,257	Stillwater Mining Co.(b)		15,335
	665	Summit Materials, Inc., Class A(b)		13,899
	3,943	SunCoke Energy, Inc.		29,297
	1,483	TimkenSteel Corp.		18,893
	2,558	Trecora Resources(b)		29,289
	821	Tredegar Corp.		13,103
	351	Trinseo SA(b)		15,019
	2,190	Tronox Ltd., Class A		15,943
	219	United States Lime & Minerals, Inc.		11,732
	203	US Concrete, Inc.(b)		12,537
	355	Worthington Industries, Inc.		13,401
				1,036,407
		Telecommunication Services—3.9%
	2,494	8x8, Inc.(b)		28,282
	318	Atlantic Tele-Network, Inc.		22,867
	3,131	Boingo Wireless, Inc.(b)		24,077
	6,177	Cincinnati Bell, Inc.(b)		23,596
	615	Cogent Communications Group, Inc.		23,801
	943	Consolidated Communications Holdings, Inc.		22,293
	1,553	FairPoint Communications, Inc.(b)		20,593
	1,287	General Communication, Inc., Class A(b)		21,750
	15,829	Globalstar, Inc.(b)		30,867
	1,028	Hawaiian Telcom Holdco, Inc.(b)		23,675
	1,513	IDT Corp., Class B		23,209
	1,499	Inteliquent, Inc.		24,868
	3,240	Iridium Communications, Inc.(b)		26,147
	1,796	Lumos Networks Corp.(b)		22,899
	2,597	ORBCOMM, Inc.(b)		25,736
	167	pdvWireless, Inc.(b)		6,744
	927	Shenandoah Telecommunications Co.		26,596
	1,390	Spok Holdings, Inc.		23,616
	813	Straight Path Communications, Inc., Class B(b)		29,756
	5,208	Vonage Holdings Corp.(b)		24,321

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Telecommunication Services (continued)
	3,218	Windstream Holdings, Inc.	$	27,932
				503,625
		Utilities—6.2%
	1,292	Abengoa Yield PLC (Spain)		23,295
	416	ALLETE, Inc.		23,375
	603	American States Water Co.		25,139
	894	Artesian Resources Corp., Class A		24,129
	9,855	Atlantic Power Corp.		26,214
	571	Avista Corp.		22,880
	404	Black Hills Corp.		24,478
	913	California Water Service Group		25,500
	371	Chesapeake Utilities Corp.		22,082
	543	Connecticut Water Service, Inc.		25,532
	1,768	Dynegy, Inc.(b)		31,170
	515	El Paso Electric Co.		23,226
	712	Empire District Electric Co. (The)		23,973
	323	IDACORP, Inc.		23,492
	451	MGE Energy, Inc.		22,482
	743	Middlesex Water Co.		27,179
	635	New Jersey Resources Corp.		22,657
	435	Northwest Natural Gas Co.		22,420
	377	NorthWestern Corp.		21,429
	1,805	NRG Yield, Inc., Class A		27,310
	383	ONE Gas, Inc.		22,394
	570	Ormat Technologies, Inc.		24,738
	806	Otter Tail Corp.		23,310
	1,214	Pattern Energy Group, Inc.		25,494
	384	Piedmont Natural Gas Co., Inc.		22,963
	688	PNM Resources, Inc.		21,796
	587	Portland General Electric Co.		23,316
	642	SJW Corp.		22,091
	824	South Jersey Industries, Inc.		22,998
	353	Southwest Gas Corp.		22,913
	343	Spire, Inc.		21,938
	546	Unitil Corp.		21,578
	324	WGL Holdings, Inc.		21,996
	777	York Water Co. (The)		23,038
				808,525
		Total Common Stocks and Other Equity Interests (Cost $13,583,971)		13,074,990
		Rights—0.0%
		Financials—0.0%
	122	Enterprise Bancorp, Inc., expiring 05/27/16(b) (Cost $0)		14
		Money Market Fund—0.1%
	19,111	Invesco Premier Portfolio—Institutional Class, 0.39%(d) (Cost $19,111)		19,111
		Total Investments (Cost $13,603,082)—100.1%		13,094,115
		Other assets less liabilities—(0.1)%		(18,808	)
		Net Assets—100.0%	$	13,075,307

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

58

PowerShares Russell 2000 Equal Weight Portfolio (EQWS) (continued)

April 30, 2016

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. The rate shown is the 7-day SEC standardized yield as of April 30, 2016.

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

59

Schedule of Investments^(a)

PowerShares Russell 2000 Pure Growth Portfolio (PXSG)

April 30, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—13.2%
	5,318	American Axle & Manufacturing Holdings, Inc.(b)	$	82,482
	1,600	Asbury Automotive Group, Inc.(b)		96,992
	2,924	BJ’s Restaurants, Inc.(b)		130,410
	295	Bloomin’ Brands, Inc.		5,517
	7,334	Blue Nile, Inc.		189,071
	1,505	Buffalo Wild Wings, Inc.(b)		201,158
	954	Cheesecake Factory, Inc. (The)		48,664
	4,317	ClubCorp Holdings, Inc.		57,632
	334	Container Store Group, Inc. (The)(b)		2,371
	64	Dave & Buster’s Entertainment, Inc.(b)		2,477
	991	Dorman Products, Inc.(b)		53,306
	1,431	Drew Industries, Inc.		92,772
	517	Etsy, Inc.(b)		4,539
	3,233	Five Below, Inc.(b)		134,816
	4,490	Francesca’s Holdings Corp.(b)		74,534
	4,620	Gentherm, Inc.(b)		169,739
	2,819	Grand Canyon Education, Inc.(b)		123,275
	113	Hibbett Sports, Inc.(b)		4,079
	2,041	IMAX Corp.(b)		65,312
	6,036	Installed Building Products, Inc.(b)		160,437
	2,118	La Quinta Holdings, Inc.(b)		27,047
	1,579	Liberty Tax, Inc., Class A		18,869
	4,944	LifeLock, Inc.(b)		57,548
	719	Lithia Motors, Inc., Class A		59,691
	3,773	Mattress Firm Holding Corp.(b)(c)		147,223
	383	Monro Muffler Brake, Inc.		26,511
	5,439	Nautilus, Inc.(b)		95,944
	4,669	Nexstar Broadcasting Group, Inc., Class A(c)		239,660
	1,956	Outerwall, Inc.(c)		80,802
	733	Oxford Industries, Inc.		48,686
	717	Papa John’s International, Inc.		40,575
	1,925	Pier 1 Imports, Inc.		13,263
	5,481	Pinnacle Entertainment, Inc.(b)		60,510
	964	Pool Corp.		84,263
	2,467	Popeyes Louisiana Kitchen, Inc.(b)		132,626
	6,789	Select Comfort Corp.(b)		167,553
	7,391	Sinclair Broadcast Group, Inc., Class A		237,029
	143	Tailored Brands, Inc.		2,491
	80	Tenneco, Inc.(b)		4,264
	9,435	Tile Shop Holdings, Inc. (The)(b)		168,320
	208	Vail Resorts, Inc.		26,965
	324	Vince Holding Corp.(b)(c)		2,002
	143	Winmark Corp.		13,614
	2,279	Zoe’s Kitchen, Inc.(b)(c)		85,440
				3,540,479
		Consumer Staples—3.3%
	693	Boston Beer Co., Inc. (The), Class A(b)		108,163
	2,438	Calavo Growers, Inc.		139,381
	3,436	Cal-Maine Foods, Inc.(c)		174,411
	88	Casey’s General Stores, Inc.		9,856
	5,297	Chefs’ Warehouse, Inc. (The)(b)		102,073
	3,036	Natural Health Trends Corp.(c)		109,873
	988	PriceSmart, Inc.		85,502
	1,210	USANA Health Sciences, Inc.(b)		143,312
				872,571

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Energy—0.4%
	6,830	RigNet, Inc.(b)	$	116,793
		Financials—5.9%
	937	Altisource Portfolio Solutions SA(b)		29,319
	65	Associated Capital Group, Inc., Class A(b)		1,981
	4,549	BofI Holding, Inc.(b)(c)		92,663
	3,632	Cohen & Steers, Inc.		142,629
	3,959	CoreSite Realty Corp. REIT		296,648
	297	Diamond Hill Investment Group, Inc.		52,052
	34	Evercore Partners, Inc., Class A		1,756
	294	Fifth Street Asset Management, Inc., Class A		1,050
	4,654	Financial Engines, Inc.(c)		149,905
	65	GAMCO Investors, Inc., Class A		2,572
	2,444	HFF, Inc., Class A		77,792
	1,939	Marcus & Millichap, Inc.(b)		48,630
	2,126	MarketAxess Holdings, Inc.		260,988
	2,411	PRA Group, Inc.(b)		79,997
	203	Ryman Hospitality Properties, Inc. REIT		10,461
	609	Universal Health Realty Income Trust REIT		33,251
	1,714	Universal Insurance Holdings, Inc.		30,183
	3,587	Virtu Financial, Inc., Class A		74,789
	715	Westwood Holdings Group, Inc.		41,148
	12,644	WisdomTree Investments, Inc.(c)		137,693
				1,565,507
		Health Care—27.4%
	2,947	AAC Holdings, Inc.(b)(c)		60,679
	4,098	Abaxis, Inc.		185,721
	4,164	ABIOMED, Inc.(b)		404,491
	2,968	Achillion Pharmaceuticals, Inc.(b)		25,376
	1,683	Adeptus Health, Inc., Class A(b)(c)		114,646
	5,823	Aerie Pharmaceuticals, Inc.(b)		92,353
	2,888	Agile Therapeutics, Inc.(b)		16,722
	2,050	Air Methods Corp.(b)		75,809
	669	ANI Pharmaceuticals, Inc.(b)		30,419
	36,369	Antares Pharma, Inc.(b)(c)		40,006
	29,923	Arena Pharmaceuticals, Inc.(b)		51,468
	14,683	ARIAD Pharmaceuticals, Inc.(b)		105,424
	5,307	BioSpecifics Technologies Corp.(b)		188,717
	2,910	Cambrex Corp.(b)		140,378
	3,037	Castlight Health, Inc., Class B(b)		10,933
	1,755	Catalent, Inc.(b)		51,825
	655	Cempra, Inc.(b)		11,089
	3,464	Cepheid, Inc.(b)		98,863
	6,302	Civitas Solutions, Inc.(b)		126,292
	9,635	CorMedix, Inc.(b)(c)		40,274
	3,189	CorVel Corp.(b)		144,143
	9,121	Depomed, Inc.(b)		158,523
	105	Enanta Pharmaceuticals, Inc.(b)		3,066
	4,495	Endologix, Inc.(b)		50,389
	2,032	Exact Sciences Corp.(b)		14,265
	6,085	ExamWorks Group, Inc.(b)		219,364
	1,556	Fluidigm Corp.(b)		14,906
	3,999	Foamix Pharmaceuticals Ltd. (Israel)(b)		25,234
	5,294	GenMark Diagnostics, Inc.(b)		31,288
	4,044	Genomic Health, Inc.(b)		106,276
	7,048	Halozyme Therapeutics, Inc.(b)		74,356

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

60

PowerShares Russell 2000 Pure Growth Portfolio (PXSG) (continued)

April 30, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Health Care (continued)
	4,291	HealthEquity, Inc.(b)	$	107,919
	568	HealthStream, Inc.(b)		12,848
	1,423	HeartWare International, Inc.(b)		47,471
	5,888	ImmunoGen, Inc.(b)		40,333
	2,135	Imprivata, Inc.(b)		25,876
	2,244	INC Research Holdings, Inc., Class A(b)		108,004
	58	Infinity Pharmaceuticals, Inc.(b)		336
	105	Insulet Corp.(b)		3,497
	2,015	Intra-Cellular Therapies, Inc.(b)		69,155
	4,031	Ironwood Pharmaceuticals, Inc., Class A(b)		42,124
	994	K2M Group Holdings, Inc.(b)		16,162
	2,576	La Jolla Pharmaceutical Co.(b)(c)		47,682
	4,269	Lannett Co., Inc.(b)(c)		81,879
	2,133	Ligand Pharmaceuticals, Inc.(b)(c)		257,816
	2,279	LivaNova PLC(b)		120,172
	1,823	Masimo Corp.(b)		79,027
	3,475	Medidata Solutions, Inc.(b)		151,614
	8,990	MiMedx Group, Inc.(b)(c)		67,695
	2,568	Molina Healthcare, Inc.(b)		132,920
	1,227	Natus Medical, Inc.(b)		39,105
	10,324	Nektar Therapeutics(b)		161,880
	3,098	Neogen Corp.(b)		146,350
	44,000	NeoGenomics, Inc.(b)		358,160
	883	Nevro Corp.(b)		59,382
	3,509	NewLink Genetics Corp.(b)(c)		56,881
	30,270	Nobilis Health Corp.(b)(c)		127,739
	10,254	Novavax, Inc.(b)(c)		53,731
	2,256	NuVasive, Inc.(b)		119,433
	172	NxStage Medical, Inc.(b)		2,773
	2,288	Ocular Therapeutix, Inc.(b)		28,097
	16,886	Orexigen Therapeutics, Inc.(b)(c)		7,548
	3,467	Pacira Pharmaceuticals, Inc.(b)		187,599
	1,097	Paratek Pharmaceuticals, Inc.(b)		14,941
	3,062	PAREXEL International Corp.(b)		187,088
	16,714	Pernix Therapeutics Holdings, Inc.(b)(c)		12,537
	329	Portola Pharmaceuticals, Inc.(b)		7,817
	964	Press Ganey Holdings, Inc.(b)		29,373
	823	Providence Service Corp. (The)(b)		41,018
	1,153	Radius Health, Inc.(b)		41,047
	5,956	RadNet, Inc.(b)		30,078
	1,934	Relypsa, Inc.(b)		35,005
	6,338	Repligen Corp.(b)		168,844
	675	Sagent Pharmaceuticals, Inc.(b)		7,857
	16,512	Sequenom, Inc.(b)(c)		21,135
	1,177	STAAR Surgical Co.(b)		9,075
	14,873	Sucampo Pharmaceuticals, Inc., Class A(b)		160,331
	10,227	Supernus Pharmaceuticals, Inc.(b)		175,495
	2,410	T2 Biosystems, Inc.(b)		22,100
	3,249	Tandem Diabetes Care, Inc.(b)		36,161
	1,624	Team Health Holdings, Inc.(b)		67,932
	7,527	Teligent, Inc.(b)(c)		41,549
	10,209	TherapeuticsMD, Inc.(b)		84,224
	4,366	Vascular Solutions, Inc.(b)		152,592
	13,729	VIVUS, Inc.(b)(c)		22,653
	26,863	XenoPort, Inc.(b)		118,197

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Health Care (continued)
	9,859	Zeltiq Aesthetics, Inc.(b)	$	294,784
	5,410	Zogenix, Inc.(b)		55,453
				7,311,789
		Industrials—14.2%
	4,776	AAON, Inc.		126,660
	4,296	Advanced Drainage Systems, Inc.(c)		99,324
	1,487	Allegiant Travel Co.		238,768
	3,760	Allied Motion Technologies, Inc.		81,028
	3,077	American Woodmark Corp.(b)		224,129
	471	Apogee Enterprises, Inc.		19,518
	279	Astronics Corp.(b)		10,309
	346	AZZ, Inc.		19,002
	2,058	Barrett Business Services, Inc.		63,819
	3,464	BMC Stock Holdings, Inc.(b)		60,793
	21,841	Builders FirstSource, Inc.(b)		242,217
	3,780	Dycom Industries, Inc.(b)		266,868
	4,650	Echo Global Logistics, Inc.(b)		108,670
	6,395	Enphase Energy, Inc.(b)(c)		16,051
	922	Forward Air Corp.		42,025
	230	GP Strategies Corp.(b)		5,368
	1,327	Greenbrier Cos., Inc. (The)(c)		39,797
	8,775	Hawaiian Holdings, Inc.(b)		369,164
	7,393	Healthcare Services Group, Inc.		279,825
	143	Heartland Express, Inc.		2,590
	281	HEICO Corp.		17,228
	1,549	HNI Corp.		67,722
	2,949	Insperity, Inc.		155,619
	7,989	Kforce, Inc.		151,871
	1,341	Knight Transportation, Inc.		35,630
	2,743	Multi-Color Corp.		164,114
	668	Nortek, Inc.(b)		31,503
	1,765	NV5 Global, Inc.(b)(c)		43,825
	1,639	On Assignment, Inc.(b)		59,102
	1,488	P.A.M. Transportation Services, Inc.(b)		36,768
	3,994	Patrick Industries, Inc.(b)		183,125
	19,414	PGT, Inc.(b)		203,265
	2,017	Power Solutions International, Inc.(b)(c)		26,120
	2,104	Sun Hydraulics Corp.		74,440
	4,305	Swift Transportation Co., Class A(b)		71,549
	3,925	TASER International, Inc.(b)		71,670
	1,161	Trex Co., Inc.(b)		55,089
	664	WageWorks, Inc.(b)		35,763
				3,800,328
		Information Technology—31.3%
	6,541	ACI Worldwide, Inc.(b)		130,755
	146	Ambarella, Inc.(b)		6,001
	9,159	Angie’s List, Inc.(b)		80,141
	1,844	Apigee Corp.(b)		17,887
	3,023	Aspen Technology, Inc.(b)		114,965
	2,470	AVG Technologies NV(b)		48,906
	1,444	Belden, Inc.		91,174
	121	Benefitfocus, Inc.(b)		4,586
	2,720	Blackbaud, Inc.		168,014
	1,253	Box, Inc., Class A(b)(c)		16,201

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

61

PowerShares Russell 2000 Pure Growth Portfolio (PXSG) (continued)

April 30, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	4,597	BroadSoft, Inc.(b)	$	180,041
	10,340	CalAmp Corp.(b)		154,790
	3,272	Callidus Software, Inc.(b)		59,878
	1,424	Carbonite, Inc.(b)		10,737
	1,023	Cardtronics, Inc.(b)		40,327
	3,796	Cavium, Inc.(b)		187,408
	1,395	Cimpress NV (Netherlands)(b)		122,579
	15,153	Clearfield, Inc.(b)(c)		281,240
	1,986	CommVault Systems, Inc.(b)		86,927
	1,732	comScore, Inc.(b)		53,034
	1,367	Cornerstone OnDemand, Inc.(b)		46,956
	2,562	Demandware, Inc.(b)		118,057
	16,612	EarthLink Holdings Corp.		96,516
	4,011	Eastman Kodak Co.(b)(c)		47,410
	1,841	Ellie Mae, Inc.(b)		153,908
	5,273	Endurance International Group Holdings, Inc.(b)(c)		56,474
	5,904	Envestnet, Inc.(b)		185,268
	2,612	EPAM Systems, Inc.(b)		190,493
	1,898	Fair Isaac Corp.		202,536
	511	FEI Co.		45,489
	4,176	Five9, Inc.(b)		38,628
	3,353	Fleetmatics Group PLC(b)		121,546
	2,510	Forrester Research, Inc.		84,386
	4,091	Gigamon, Inc.(b)		133,326
	2,000	Globant SA(b)		70,980
	3,024	GrubHub, Inc.(b)(c)		79,289
	5,375	GTT Communications, Inc.(b)		85,892
	6,191	Hackett Group, Inc. (The)		92,122
	728	Hortonworks, Inc.(b)		8,423
	495	HubSpot, Inc.(b)		21,924
	16,719	Immersion Corp.(b)		122,216
	241	Imperva, Inc.(b)		11,202
	6,044	Infinera Corp.(b)		71,863
	5,151	Inphi Corp.(b)		152,830
	345	InvenSense, Inc.(b)		2,650
	517	j2 Global, Inc.		32,840
	2,568	Jive Software, Inc.(b)		10,452
	3,743	Lionbridge Technologies, Inc.(b)		18,678
	4,146	LogMeIn, Inc.(b)		247,516
	1,656	Luxoft Holding, Inc., Class A(b)		95,733
	1,825	M/A-Com Technology Solutions Holdings, Inc.(b)		74,624
	1,763	Manhattan Associates, Inc.(b)		106,732
	14	Marketo, Inc.(b)		308
	45,206	Mattson Technology, Inc.(b)		165,002
	1,934	MAXIMUS, Inc.		102,309
	22,920	MaxLinear, Inc., Class A(b)		383,910
	2,914	Methode Electronics, Inc.		86,633
	889	Microsemi Corp.(b)		30,039
	662	MicroStrategy, Inc., Class A(b)		118,710
	625	New Relic, Inc.(b)(c)		16,112
	1,018	NIC, Inc.		18,029
	1,202	Nimble Storage, Inc.(b)		8,871
	1,422	OPOWER,Inc.(b)(c)		11,234
	4,636	Paycom Software, Inc.(b)		177,142
	1,035	Paylocity Holding Corp.(b)		39,609

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	2,629	Pegasystems, Inc.	$	69,379
	216	Proofpoint, Inc.(b)		12,584
	4,253	PROS Holdings, Inc.(b)		50,015
	960	Q2 Holdings, Inc.(b)		22,954
	5,014	Qlik Technologies, Inc.(b)		154,381
	2,485	Qualys, Inc.(b)		62,572
	5,115	Quotient Technology, Inc.(b)(c)		59,436
	1,894	Rambus, Inc.(b)		22,008
	9,922	RealPage, Inc.(b)		218,185
	1,400	RingCentral, Inc., Class A(b)		26,712
	8,206	Rubicon Project, Inc. (The)(b)		158,950
	2,393	SPS Commerce, Inc.(b)		121,875
	1,330	Stamps.com, Inc.(b)		109,539
	2,286	Synaptics, Inc.(b)		163,563
	3,026	Synchronoss Technologies, Inc.(b)		94,018
	2,557	Tangoe, Inc.(b)		22,553
	15,208	TiVo, Inc.(b)		151,776
	1	TrueCar, Inc.(b)		7
	1,386	Tyler Technologies, Inc.(b)		202,924
	2,394	Universal Display Corp.(b)		139,594
	839	Varonis Systems, Inc.(b)		16,067
	4,992	VASCO Data Security International, Inc.(b)		86,511
	931	Violin Memory, Inc.(b)		329
	1,571	Virtusa Corp.(b)		55,833
	68	Web.com Group, Inc.(b)		1,359
	4,455	WebMD Health Corp.(b)		279,507
	108	Wix.com Ltd. (Israel)(b)		2,670
	1,866	Workiva, Inc., Class A(b)		22,224
	859	Zendesk, Inc.(b)		19,413
	44,625	Zix Corp.(b)		166,451
				8,353,847
		Materials—3.0%
	2,056	Balchem Corp.		126,156
	126	Deltic Timber Corp.		7,875
	10,499	Ferroglobal PLC		106,985
	2,220	Koppers Holdings, Inc.(b)		55,789
	4,993	PolyOne Corp.		179,648
	3,437	Summit Materials, Inc., Class A(b)		71,833
	3,276	Trinseo SA(b)		140,180
	2,015	US Concrete, Inc.(b)		124,447
				812,913
		Telecommunication Services—1.3%
	5,637	Cogent Communications Group, Inc.		218,152
	931	FairPoint Communications, Inc.(b)		12,345
	6,339	General Communication, Inc., Class A(b)		107,129
				337,626
		Total Common Stocks and Other Equity Interests (Cost $29,699,724)		26,711,853

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

62

PowerShares Russell 2000 Pure Growth Portfolio (PXSG) (continued)

April 30, 2016

Number of Shares			Value
		Money Market Fund—0.1%
	36,963	Invesco Premier Portfolio—Institutional Class, 0.39%(d) (Cost $36,963)	$	36,963
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $29,736,687)—100.1%		26,748,816
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—7.8%
	2,079,497	Invesco Liquid Assets Portfolio—Institutional Class, 0.44%(d)(e) (Cost $2,079,497)		2,079,497
		Total Investments (Cost $31,816,184)—107.9%		28,828,313
		Other assets less liabilities—(7.9)%		(2,109,078	)
		Net Assets—100.0%	$	26,719,235

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, 2016.

^(d)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of April 30, 2016.

^(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 2H.

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

63

Schedule of Investments^(a)

PowerShares Russell 2000 Pure Value Portfolio (PXSV)

April 30, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests—99.9%
		Consumer Discretionary—5.2%
	25,563	Apollo Education Group, Inc., Class A(b)	$	199,391
	2,370	Ascent Capital Group, Inc., Series A(b)		35,716
	4,155	Barnes & Noble Education, Inc.(b)		38,891
	6,525	Barnes & Noble, Inc.		76,669
	122,057	bebe stores, Inc.(b)(c)		68,694
	89,633	Career Education Corp.(b)		478,640
	12,895	DeVry Education Group, Inc.(c)		223,728
	1,276	FTD Cos., Inc.(b)		35,486
	18,317	Guess?, Inc.		336,117
	17,471	Harte-Hanks, Inc.		31,797
	88	Haverty Furniture Cos., Inc.		1,643
	7,991	International Speedway Corp., Class A		267,619
	9,739	New Media Investment Group, Inc.		156,311
	19,713	Regis Corp.(b)		269,477
	13,421	Ruby Tuesday, Inc.(b)		59,052
	1,741	Scholastic Corp.		63,338
	19,358	Speedway Motorsports, Inc.		339,152
	2,978	Stage Stores, Inc.(c)		21,918
	4,839	Stein Mart, Inc.		35,034
	7,643	Taylor Morrison Home Corp., Class A(b)		110,059
	17,404	Time, Inc.		255,839
				3,104,571
		Consumer Staples—0.3%
	1,373	Fresh Del Monte Produce, Inc.		59,396
	2,575	Universal Corp.		140,466
	190	Weis Markets, Inc.		8,649
				208,511
		Energy—10.2%
	12,923	Archrock, Inc.		127,292
	3,565	Ardmore Shipping Corp. (Ireland)		33,333
	58,527	Bill Barrett Corp.(b)(c)		465,875
	68,075	Callon Petroleum Co.(b)		715,468
	1,045	CARBO Ceramics, Inc.(c)		15,518
	825	Clayton Williams Energy, Inc.(b)(c)		14,957
	92,063	Cloud Peak Energy, Inc.(b)(c)		203,459
	33,188	Contango Oil & Gas Co.(b)		417,505
	9,860	DHT Holdings, Inc.		56,596
	10,269	Eclipse Resources Corp.(b)(c)		24,954
	5,860	Era Group, Inc.(b)		55,846
	44,299	EXCO Resources, Inc.(b)(c)		67,334
	6,488	Exterran Corp.(b)		99,266
	8,869	Forum Energy Technologies, Inc.(b)		148,467
	7,375	Frontline Ltd. (Norway)(c)		60,770
	29,760	Gastar Exploration, Inc.(b)		59,222
	8,880	Geospace Technologies Corp.(b)		145,277
	17,356	Gulfmark Offshore, Inc., Class A(b)(c)		117,674
	103,223	Halcon Resources Corp.(b)(c)		125,932
	34,001	Helix Energy Solutions Group, Inc.(b)		293,429
	17,209	Hornbeck Offshore Services, Inc.(b)(c)		202,034
	9,348	Jones Energy, Inc., Class A(b)		44,870
	155,542	Key Energy Services, Inc.(b)(c)		82,266
	86,169	McDermott International, Inc.(b)		391,207
	16,530	North Atlantic Drilling Ltd. (Norway)(b)(c)		62,483
	9,706	Oil States International, Inc.(b)		336,216
	42,661	Pacific Ethanol, Inc.(b)(c)		201,787

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Energy (continued)
	95,484	Parker Drilling Co.(b)	$	292,181
	62	PDC Energy, Inc.(b)		3,893
	3,149	Scorpio Tankers, Inc. (Monaco)		19,713
	33,455	Seventy Seven Energy, Inc.(b)		6,380
	30,109	Ship Finance International Ltd. (Norway)(c)		456,754
	35,763	Stone Energy Corp.(b)(c)		35,051
	12,468	Tesco Corp.		117,947
	59,733	TETRA Technologies, Inc.(b)		430,078
	7,537	Tidewater, Inc.		66,024
	36,502	W&T Offshore, Inc.(b)(c)		87,970
				6,085,028
		Financials—56.6%
	7,762	1st Source Corp.		267,323
	16,314	AG Mortgage Investment Trust, Inc. REIT		218,444
	5,228	Agree Realty Corp. REIT		202,742
	17,580	American Capital Mortgage Investment Corp. REIT		260,711
	4,072	American Equity Investment Life Holding Co.		57,008
	14,523	Apollo Commercial Real Estate Finance, Inc. REIT		231,351
	7,082	Apollo Residential Mortgage, Inc. REIT		96,032
	1,176	Argo Group International Holdings Ltd.		64,645
	12,327	Arlington Asset Investment Corp., Class A(c)		159,511
	13,208	Armada Hoffler Properties, Inc. REIT		154,534
	9,113	ARMOUR Residential REIT, Inc. REIT		193,925
	26,204	Astoria Financial Corp.		394,108
	1,913	BancFirst Corp.		119,314
	2,174	Banco Latinoamericano de Comercio Exterior SA, Class E (Panama)		56,220
	13,296	Bancorp, Inc. (The)(b)		75,388
	16,026	BankFinancial Corp.		198,081
	4,695	Banner Corp.		200,852
	18,733	BBCN Bancorp, Inc.		292,609
	20,475	Beneficial Bancorp, Inc.(b)		284,398
	7,167	Berkshire Hills Bancorp, Inc.		194,512
	9,269	Blue Hills Bancorp, Inc.		135,142
	12,714	Bluerock Residential Growth REIT, Inc., Class A REIT(c)		139,091
	3,641	Boston Private Financial Holdings, Inc.		44,493
	7,251	Bryn Mawr Bank Corp.		206,073
	29,164	Calamos Asset Management, Inc., Class A		240,311
	24,745	Capitol Federal Financial, Inc.		328,861
	32,399	Capstead Mortgage Corp. REIT		314,918
	14,424	Cash America International, Inc.		533,111
	17,462	CatchMark Timber Trust, Inc., Class A REIT		185,272
	3,497	Cathay General Bancorp		106,728
	7,334	Cedar Realty Trust, Inc. REIT		50,751
	3,469	Centerstate Banks, Inc.		56,510
	3,725	Central Pacific Financial Corp.		86,942
	8,878	Chatham Lodging Trust REIT		189,190
	6,418	Chemical Financial Corp.		246,836
	4,310	City Holding Co.		211,707
	10,148	Clifton Bancorp, Inc.		151,002
	20,793	CoBiz Financial, Inc.		251,803
	5,759	Colony Capital, Inc., Class A REIT		101,819
	6,505	Colony Starwood Homes REIT		158,527

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

64

PowerShares Russell 2000 Pure Value Portfolio (PXSV) (continued)

April 30, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	1,695	Columbia Banking System, Inc.	$	49,986
	3,293	Community Bank System, Inc.		130,304
	6,196	Community Trust Bancorp, Inc.		222,251
	28,035	Cousins Properties, Inc. REIT		290,162
	7,525	CVB Financial Corp.		129,280
	43,372	CYS Investments, Inc. REIT		351,747
	8,748	DCT Industrial Trust, Inc. REIT		353,157
	23,022	DiamondRock Hospitality Co. REIT		205,126
	21,684	Dime Community Bancshares, Inc.		392,697
	37,818	Dynex Capital, Inc. REIT		245,817
	7,200	Education Realty Trust, Inc. REIT		286,344
	15,986	Enterprise Financial Services Corp.		437,537
	4,209	EPR Properties REIT		277,289
	2,907	EverBank Financial Corp.		43,838
	20,765	EZCORP, Inc., Class A(b)		102,787
	20,725	F.N.B. Corp.		273,985
	4,930	FBL Financial Group, Inc., Class A		298,117
	7,956	Federal Agricultural Mortgage Corp., Class C		323,650
	3,753	Fidelity & Guaranty Life(c)		99,229
	14,086	Fidelity Southern Corp.		227,630
	1,189	First American Financial Corp.		42,828
	30,856	First BanCorp(b)		120,338
	10,721	First Busey Corp.		219,137
	315	First Citizens BancShares, Inc., Class A		80,325
	7,613	First Defiance Financial Corp.		301,323
	9,678	First Financial Bancorp		188,721
	5,422	First Financial Corp.		192,101
	3,094	First Industrial Realty Trust, Inc. REIT		70,976
	5,028	First Interstate BancSystem, Inc., Class A		136,259
	16,123	First Merchants Corp.		413,555
	807	First Midwest Bancorp, Inc.		14,913
	721	First NBC Bank Holding Co.(b)		15,675
	24,802	First Potomac Realty Trust REIT		208,585
	8,676	FirstMerit Corp.		192,260
	21,000	Flagstar Bancorp, Inc.(b)		497,070
	18,013	Flushing Financial Corp.		359,359
	25,319	Fulton Financial Corp.		354,213
	146	Getty Realty Corp. REIT		2,873
	823	Glacier Bancorp, Inc.		21,307
	6,205	Gladstone Commercial Corp. REIT		104,430
	5,822	Government Properties Income Trust REIT		110,152
	75,945	Gramercy Property Trust REIT		643,254
	9,606	Great Ajax Corp. REIT		130,834
	7,027	Great Southern Bancorp, Inc.		266,042
	12,626	Great Western Bancorp, Inc.		397,972
	1,335	Green Dot Corp., Class A(b)		29,677
	5,419	Guaranty Bancorp		88,980
	11,053	Hancock Holding Co.		287,046
	9,868	Hanmi Financial Corp.		228,148
	1,768	Heartland Financial USA, Inc.		59,246
	12,005	Hersha Hospitality Trust REIT		231,576
	12,910	HomeTrust Bancshares, Inc.(b)		239,481
	5,991	Horace Mann Educators Corp.		186,320
	243	Hudson Pacific Properties, Inc. REIT		7,108
	454	IBERIABANK Corp.		26,781
	42,592	Independence Realty Trust, Inc. REIT		305,385

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	5,042	Independent Bank Corp./MA	$	237,125
	18,926	Independent Bank Corp./MI		286,729
	7,725	International Bancshares Corp.		202,318
	20,075	Invesco Mortgage Capital, Inc. REIT(d)		257,964
	14,871	Investors Real Estate Trust REIT		89,523
	23,564	iStar, Inc. REIT(b)		230,927
	3,947	James River Group Holdings Ltd.		122,199
	11,944	JG Wentworth Co. (The), Class A(b)(c)		13,736
	2,336	Kite Realty Group Trust REIT		63,609
	28,457	Lakeland Bancorp, Inc.		315,588
	1,845	Lakeland Financial Corp.		87,250
	2,979	LaSalle Hotel Properties REIT		71,198
	16,749	Lexington Realty Trust REIT		147,056
	11,669	Mack-Cali Realty Corp. REIT		298,260
	10,831	MainSource Financial Group, Inc.		236,657
	14,417	MBIA, Inc.(b)		112,453
	4,492	Mercantile Bank Corp.		108,347
	9,105	Monmouth Real Estate Investment Corp. REIT		104,708
	17,220	Monogram Residential Trust, Inc. REIT		174,439
	553	National Western Life Group, Inc., Class A		119,835
	1,976	Nationstar Mortgage Holdings, Inc.(b)(c)		22,902
	184	Navigators Group, Inc. (The)(b)		15,200
	14,032	NBT Bancorp, Inc.		397,667
	3,419	Nelnet, Inc., Class A		143,290
	10,823	NexPoint Residential Trust, Inc. REIT		152,171
	20,022	Northwest Bancshares, Inc.		280,708
	21,555	OFG Bancorp		190,331
	12,084	Old National Bancorp		161,926
	14,089	One Liberty Properties, Inc. REIT		329,964
	4,693	Oppenheimer Holdings, Inc., Class A		71,709
	19,292	Orchid Island Capital, Inc. REIT(c)		186,747
	6,503	Pacific Continental Corp.		108,340
	324	Park National Corp.		29,743
	656	Parkway Properties, Inc. REIT		10,791
	17,685	PennyMac Mortgage Investment Trust REIT		240,339
	3,545	Peoples Bancorp, Inc.		76,182
	15,717	PHH Corp.(b)		201,649
	4,273	Piper Jaffray Cos.(b)		178,227
	16,657	Preferred Apartment Communities, Inc., Class A REIT		205,547
	4,776	Prosperity Bancshares, Inc.		252,030
	15,508	Provident Financial Services, Inc.		309,850
	13,976	QCR Holdings, Inc.		360,162
	18,039	Radian Group, Inc.		230,719
	52,540	RAIT Financial Trust REIT		159,722
	12,681	Ramco-Gershenson Properties Trust REIT		224,581
	459	Redwood Trust, Inc. REIT		5,949
	1,787	Resource Capital Corp. REIT(c)		21,230
	7,050	Retail Opportunity Investments Corp. REIT		138,674
	11,843	Rexford Industrial Realty, Inc. REIT		222,293
	300	RMR Group, Inc. (The), Class A		7,476
	6,432	S&T Bancorp, Inc.		165,109
	18	Safety Insurance Group, Inc.		1,019
	6,228	Sandy Spring Bancorp, Inc.		178,059
	13,856	Select Income REIT		320,766
	4,552	Selective Insurance Group, Inc.		158,000

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

65

PowerShares Russell 2000 Pure Value Portfolio (PXSV) (continued)

April 30, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	5,201	Silver Bay Realty Trust Corp. REIT	$	75,935
	9,422	Southside Bancshares, Inc.		275,217
	2,292	Stock Yards Bancorp, Inc.		92,689
	7,452	STORE Capital Corp. REIT		191,293
	6,025	Summit Hotel Properties, Inc. REIT		68,685
	6,503	Talmer Bancorp, Inc., Class A		126,158
	115	Tejon Ranch Co.(b)		2,590
	2,864	Terreno Realty Corp. REIT		65,213
	4,009	Tompkins Financial Corp.		261,948
	5,392	TowneBank		113,232
	10,081	TriCo Bancshares		271,381
	27,504	Triumph Bancorp, Inc.(b)		437,039
	13,369	TrustCo Bank Corp. NY		85,695
	7,610	Trustmark Corp.		186,521
	4,363	Umpqua Holdings Corp.		69,066
	9,067	Union Bankshares Corp.		239,459
	5,786	United Bankshares, Inc.(c)		223,860
	1,050	United Community Banks, Inc.		21,137
	48,033	United Community Financial Corp.		285,316
	11,956	United Development Funding IV REIT(c)		38,259
	35,522	Valley National Bancorp		336,038
	15,387	Washington Federal, Inc.		373,750
	6,568	Washington Trust Bancorp, Inc.		240,586
	8,823	Webster Financial Corp.		323,275
	8,994	WesBanco, Inc.		288,977
	486	Westamerica Bancorp.(c)		23,678
	20,648	Western Asset Mortgage Capital Corp. REIT(c)		205,861
	23,234	Whitestone REIT		312,033
	1,561	Wintrust Financial Corp.		81,203
	13,056	WSFS Financial Corp.		445,732
				33,776,797
		Health Care—1.2%
	38,821	BioScrip, Inc.(b)(c)		102,487
	18,045	Endocyte, Inc.(b)		70,376
	108,031	Five Star Quality Care, Inc.(b)		263,596
	2,969	Halyard Health, Inc.(b)		83,607
	10,027	Invacare Corp.		112,703
	3,505	Kindred Healthcare, Inc.		51,734
	225	PharMerica Corp.(b)		5,319
				689,822
		Industrials—7.1%
	11,160	AAR Corp.		268,286
	61,307	ACCO Brands Corp.(b)		584,869
	12,624	Aerovironment, Inc.(b)		364,581
	10,834	Air Transport Services Group, Inc.(b)		152,651
	3,342	Aircastle Ltd.		72,521
	3,275	Brady Corp., Class A		86,755
	716	CIRCOR International, Inc.		40,418
	55,012	Civeo Corp.(b)		83,618
	2,529	Columbus McKinnon Corp.		41,754
	2,591	Cubic Corp.		107,708
	15,392	Eagle Bulk Shipping, Inc.(b)(c)		12,694
	4,951	Ennis, Inc.		96,743
	8,438	ESCO Technologies, Inc.		324,694
	32,782	Golden Ocean Group Ltd. (Norway)(b)		28,422

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrials (continued)
	10,271	Mercury Systems, Inc.(b)	$	215,896
	17,395	MRC Global, Inc.(b)		243,182
	14,390	Navigant Consulting, Inc.(b)		229,664
	23,192	Navios Maritime Holdings, Inc. (Monaco)(c)		27,135
	4,321	Northwest Pipe Co.(b)		46,624
	9,912	Powell Industries, Inc.		308,462
	145,504	Safe Bulkers, Inc. (Greece)(c)		180,425
	7,766	Tetra Tech, Inc.		228,320
	3,703	Veritiv Corp.(b)		151,897
	1,412	Viad Corp.		42,007
	4,566	VSE Corp.		283,275
				4,222,601
		Information Technology—7.5%
	15,387	Acxiom Corp.(b)		338,052
	3,729	ADTRAN, Inc.		72,044
	66,325	Amkor Technology, Inc.(b)		378,716
	24,882	AVX Corp.		328,940
	9,891	Black Box Corp.		144,606
	48,635	Checkpoint Systems, Inc.(b)		492,186
	8,519	Cohu, Inc.		98,480
	4,346	Comtech Telecommunications Corp.		105,173
	18,871	EMCORE Corp.(b)		107,565
	5,924	Fabrinet (Thailand)(b)		189,390
	12,007	ManTech International Corp., Class A		405,837
	980	MKS Instruments, Inc.		35,143
	1,289	MoneyGram International, Inc.(b)		7,927
	419	Multi-Fineline Electronix, Inc.(b)		9,637
	61,185	Oclaro, Inc.(b)(c)		308,984
	1,239	Photronics, Inc.(b)		13,109
	6,203	QLogic Corp.(b)		81,197
	15,706	QuinStreet, Inc.(b)		55,285
	15,131	Sanmina Corp.(b)		357,848
	75,990	SeaChange International, Inc.(b)		283,443
	18,033	Sonus Networks, Inc.(b)		148,953
	2,195	TTM Technologies, Inc.(b)		14,311
	65,208	Ultra Clean Holdings, Inc.(b)		371,034
	12,031	Vishay Intertechnology, Inc.		146,297
				4,494,157
		Materials—0.1%
	602	Greif, Inc., Class A		20,889
	2,658	TimkenSteel Corp.		33,863
				54,752
		Telecommunication Services—2.0%
	1,647	Atlantic Tele-Network, Inc.		118,436
	20,679	Hawaiian Telcom Holdco, Inc.(b)		476,237
	16,867	Iridium Communications, Inc.(b)(c)		136,117
	26,440	Leap Wireless Corp.(b)		66,629
	22,247	Spok Holdings, Inc.		377,976
				1,175,395
		Utilities—9.7%
	2,427	Abengoa Yield PLC (Spain)(c)		43,759
	7,703	ALLETE, Inc.		432,832
	12,877	Avista Corp.		515,981
	7,953	Black Hills Corp.		481,872

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

66

PowerShares Russell 2000 Pure Value Portfolio (PXSV) (continued)

April 30, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Utilities (continued)
	3,637	California Water Service Group	$	101,581
	6,525	Dynegy, Inc.(b)		115,036
	6,174	El Paso Electric Co.		278,447
	12,792	Empire District Electric Co. (The)		430,707
	3,294	IDACORP, Inc.		239,573
	7,815	Northwest Natural Gas Co.		402,785
	2,134	NorthWestern Corp.		121,297
	9,377	ONE Gas, Inc.		548,273
	3,003	Otter Tail Corp.		86,847
	6,807	PNM Resources, Inc.		215,646
	14,804	Portland General Electric Co.		588,015
	1,237	SJW Corp.		42,565
	8,373	South Jersey Industries, Inc.		233,690
	1,367	Southwest Gas Corp.		88,732
	6,792	Spire, Inc.		434,416
	10,300	Unitil Corp.		407,056
				5,809,110
		Total Common Stocks and Other Equity Interests (Cost $64,842,813)		59,620,744
		Money Market Fund—0.1%
	60,661	Invesco Premier Portfolio—Institutional Class, 0.39%(e) (Cost $60,661)		60,661
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $64,903,474)—100.0%		59,681,405
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—5.0%
	2,983,531	Invesco Liquid Assets Portfolio—Institutional Class, 0.44%(e)(f) (Cost $2,983,531)		2,983,531
		Total Investments (Cost $67,887,005)—105.0%		62,664,936
		Other assets less liabilities—(5.0)%		(2,997,321	)
		Net Assets—100.0%	$	59,667,615

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, 2016.

^(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. The rate shown is the 7-day SEC standardized yield as of April 30, 2016.

^(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 2H.

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

67

Schedule of Investments^(a)

PowerShares Russell Midcap Equal Weight Portfolio (EQWM)

April 30, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—10.0%
	707	Aaron’s, Inc.	$	18,530
	107	Advance Auto Parts, Inc.		16,703
	269	AMC Networks, Inc., Class A(b)		17,547
	530	Aramark		17,760
	366	AutoNation, Inc.(b)		18,538
	23	AutoZone, Inc.(b)		17,600
	351	Bed Bath & Beyond, Inc.(b)		16,574
	550	Best Buy Co., Inc.		17,644
	465	BorgWarner, Inc.		16,703
	377	Brinker International, Inc.		17,463
	366	Brunswick Corp.		17,579
	366	Cabela’s, Inc.(b)		19,087
	40	Cable One, Inc.		18,358
	523	Cablevision Systems Corp., Class A		17,463
	354	CarMax, Inc.(b)		18,744
	167	Carter’s, Inc.		17,814
	87	Charter Communications, Inc., Class A(b)		18,465
	39	Chipotle Mexican Grill, Inc.(b)		16,418
	332	Choice Hotels International, Inc.		16,819
	483	Cinemark Holdings, Inc.		16,736
	3,882	Clear Channel Outdoor Holdings, Inc., Class A		19,837
	444	Coach, Inc.		17,880
	451	CST Brands, Inc.		17,034
	579	D.R. Horton, Inc.		17,405
	259	Darden Restaurants, Inc.		16,123
	239	Delphi Automotive PLC (United Kingdom)		17,598
	366	Dick’s Sporting Goods, Inc.		16,960
	205	Dillard’s, Inc., Class A		14,442
	612	Discovery Communications, Inc., Class A(b)		16,714
	200	Dollar General Corp.		16,382
	213	Dollar Tree, Inc.(b)		16,978
	134	Domino’s Pizza, Inc.		16,198
	641	DSW, Inc., Class A		15,749
	373	Dunkin’ Brands Group, Inc.		17,345
	162	Expedia, Inc., Class A		18,755
	1,098	Extended Stay America, Inc.		17,184
	265	Foot Locker, Inc.		16,282
	391	Fossil Group, Inc.(b)		15,836
	574	GameStop Corp., Class A		18,827
	595	Gap, Inc. (The)		13,792
	442	Garmin Ltd.		18,842
	1,119	Gentex Corp.		17,949
	176	Genuine Parts Co.		16,891
	2,365	GNC Holdings, Inc., Class A		57,611
	540	Goodyear Tire & Rubber Co. (The)		15,644
	1,502	GoPro, Inc., Class A(b)		18,985
	36	Graham Holdings Co., Class B		17,155
	6,959	Groupon, Inc.(b)		25,192
	654	H&R Block, Inc.		13,237
	610	Hanesbrands, Inc.		17,708
	357	Harley-Davidson, Inc.		17,075
	203	Harman International Industries, Inc.		15,582
	222	Hasbro, Inc.		18,790
	775	Hilton Worldwide Holdings, Inc.		17,089
	366	Hyatt Hotels Corp., Class A(b)		17,524
	963	International Game Technology PLC		16,698

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Discretionary (continued)
	786	Interpublic Group of Cos., Inc. (The)	$	18,031
	1,540	J.C. Penney Co., Inc.(b)		14,291
	357	John Wiley & Sons, Inc., Class A		17,704
	704	Kate Spade & Co.(b)		18,114
	369	Kohl’s Corp.		16,347
	199	L Brands, Inc.		15,580
	157	Lear Corp.		18,075
	363	Leggett & Platt, Inc.		17,892
	370	Lennar Corp., Class A		16,765
	46	Liberty Braves Group, Class C(b)		686
	304	Liberty Broadband Corp., Class C(b)		17,404
	697	Liberty Interactive Corp. QVC Group, Series A(b)		18,261
	115	Liberty Media Group, Class C(b)		2,070
	461	Liberty SiriusXM Group, Class C(b)		14,761
	451	Liberty Ventures, Series A(b)		18,040
	798	Lions Gate Entertainment Corp.		17,716
	765	Live Nation Entertainment, Inc.(b)		16,432
	564	LKQ Corp.(b)		18,076
	285	Lululemon Athletica, Inc.(b)		18,682
	390	Macy’s, Inc.		15,440
	105	Madison Square Garden Co. (The), Class A(b)		16,483
	430	Marriott International, Inc., Class A		30,139
	534	Mattel, Inc.		16,602
	845	MGM Resorts International(b)		17,999
	307	Michael Kors Holdings Ltd.(b)		15,860
	635	Michaels Cos., Inc. (The)(b)		18,053
	91	Mohawk Industries, Inc.(b)		17,529
	1,029	MSG Networks, Inc., Class A(b)		17,586
	279	Murphy USA, Inc.(b)		16,020
	663	Newell Brands, Inc.		30,193
	1,344	News Corp., Class A		16,692
	305	Nordstrom, Inc.		15,595
	336	Norwegian Cruise Line Holdings Ltd.(b)		16,427
	10	NVR, Inc.(b)		16,613
	2,322	Office Depot, Inc.(b)		13,653
	210	Omnicom Group, Inc.		17,424
	68	O’Reilly Automotive, Inc.(b)		17,862
	84	Panera Bread Co., Class A(b)		18,017
	453	Penske Automotive Group, Inc.		17,726
	175	Polaris Industries, Inc.		17,129
	954	PulteGroup, Inc.		17,544
	179	PVH Corp.		17,112
	179	Ralph Lauren Corp., Class A		16,685
	815	Regal Entertainment Group, Class A		16,993
	300	Ross Stores, Inc.		17,034
	229	Royal Caribbean Cruises Ltd.		17,725
	539	Sally Beauty Holdings, Inc.(b)		16,925
	267	Scripps Networks Interactive, Inc., Class A		16,647
	1,170	Sears Holdings Corp.(b)		19,159
	750	Service Corp. International		20,003
	478	ServiceMaster Global Holdings, Inc.(b)		18,317
	140	Signet Jewelers Ltd.		15,198
	4,417	Sirius XM Holdings, Inc.(b)		17,447
	315	Six Flags Entertainment Corp.		18,916
	561	Skechers U.S.A., Inc., Class A(b)		18,541
	1,585	Staples, Inc.		16,167

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

68

PowerShares Russell Midcap Equal Weight Portfolio (EQWM) (continued)

April 30, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Discretionary (continued)
	656	Starz, Class A(b)	$	17,850
	735	TEGNA, Inc.		17,170
	291	Tempur Sealy International, Inc.(b)		17,655
	280	Thor Industries, Inc.		17,926
	243	Tiffany & Co.		17,338
	602	Toll Brothers, Inc.(b)		16,435
	771	TopBuild Corp.(b)		24,071
	193	Tractor Supply Co.		18,269
	462	Tribune Media Co., Class A		17,810
	276	TripAdvisor, Inc., Class A(b)		17,827
	306	Tupperware Brands Corp.		17,769
	97	Ulta Salon, Cosmetics & Fragrance, Inc.(b)		20,203
	209	Under Armour, Inc., Class A(b)		9,183
	209	Under Armour, Inc., Class C(b)		8,527
	535	Urban Outfitters, Inc.(b)		16,221
	337	Vista Outdoor, Inc.(b)		16,169
	220	Visteon Corp.		17,527
	1,627	Wendy’s Co. (The)		17,669
	98	Whirlpool Corp.		17,066
	318	Williams-Sonoma, Inc.		18,692
	232	Wyndham Worldwide Corp.		16,460
	186	Wynn Resorts Ltd.		16,424
				2,340,481
		Consumer Staples—10.8%
	3,722	Avon Products, Inc.		17,531
	2,917	Blue Buffalo Pet Products, Inc.(b)		72,225
	748	Brown-Forman Corp., Class B		72,047
	1,285	Bunge Ltd.		80,313
	1,138	Campbell Soup Co.		70,226
	783	Church & Dwight Co., Inc.		72,584
	565	Clorox Co. (The)		70,755
	1,438	Coca-Cola Enterprises, Inc.		75,466
	1,626	ConAgra Foods, Inc.		72,455
	473	Constellation Brands, Inc., Class A		73,816
	637	Coty, Inc., Class A		19,365
	797	Dr Pepper Snapple Group, Inc.		72,455
	900	Edgewell Personal Care Co.		73,863
	1,817	Energizer Holdings, Inc.		79,021
	3,848	Flowers Foods, Inc.		73,728
	1,787	Hain Celestial Group, Inc. (The)(b)		74,804
	1,187	Herbalife Ltd.(b)		68,787
	797	Hershey Co. (The)		74,209
	1,645	Hormel Foods Corp.		63,415
	681	Ingredion, Inc.		78,376
	545	JM Smucker Co. (The)		69,204
	952	Kellogg Co.		73,123
	739	McCormick & Co., Inc.		69,303
	871	Mead Johnson Nutrition Co.		75,908
	755	Molson Coors Brewing Co., Class B		72,201
	543	Monster Beverage Corp.(b)		78,312
	1,907	Nu Skin Enterprises, Inc., Class A		77,748
	2,958	Pilgrim’s Pride Corp.(b)		79,600
	1,614	Pinnacle Foods, Inc.		68,740
	8,887	Rite Aid Corp.(b)		71,540
	675	Spectrum Brands Holdings, Inc.		76,680
	2,502	Sprouts Farmers Market, Inc.(b)		70,231

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Staples (continued)
	1,557	Sysco Corp.	$	71,731
	1,070	Tyson Foods, Inc., Class A		70,427
	1,820	WhiteWave Foods Co. (The)(b)		73,182
	2,251	Whole Foods Market, Inc.		65,459
				2,518,830
		Energy—11.8%
	1,564	Antero Resources Corp.(b)		44,261
	1,749	Cabot Oil & Gas Corp.		40,927
	33,319	California Resources Corp.		73,302
	1,162	Cheniere Energy, Inc.(b)		45,179
	9,540	Chesapeake Energy Corp.		65,540
	404	Cimarex Energy Co.		43,987
	13,353	Cobalt International Energy, Inc.(b)		43,130
	1,542	Columbia Pipeline Group, Inc.		39,506
	385	Concho Resources, Inc.(b)		44,725
	3,534	CONSOL Energy, Inc.		53,187
	1,356	Continental Resources, Inc.(b)		50,525
	1,487	CVR Energy, Inc.		36,104
	17,331	Denbury Resources, Inc.		66,898
	1,708	Diamond Offshore Drilling, Inc.		41,436
	505	Diamondback Energy, Inc.(b)		43,723
	647	Dril-Quip, Inc.(b)		41,939
	1,147	Energen Corp.		48,736
	3,600	Ensco PLC, Class A		43,056
	7,552	EP Energy Corp., Class A(b)		37,080
	591	EQT Corp.		41,429
	1,438	FMC Technologies, Inc.(b)		43,845
	2,379	Frank’s International NV		39,610
	2,153	Golar LNG Ltd. (Bermuda)		35,697
	1,412	Gulfport Energy Corp.(b)		44,196
	661	Helmerich & Payne, Inc.		43,705
	759	Hess Corp.		45,252
	1,081	HollyFrontier Corp.		38,484
	6,891	Kosmos Energy Ltd.(b)		44,654
	5,137	Laredo Petroleum, Inc.(b)		62,569
	3,798	Marathon Oil Corp.		53,514
	4,037	Memorial Resource Development Corp.(b)		52,804
	1,602	Murphy Oil Corp.		57,255
	4,446	Nabors Industries Ltd.		43,571
	1,226	National Oilwell Varco, Inc.		44,185
	1,211	Newfield Exploration Co.(b)		43,899
	3,600	Noble Corp. PLC (United Kingdom)		40,428
	1,300	Noble Energy, Inc.		46,943
	1,171	Oceaneering International, Inc.		42,917
	1,362	ONEOK, Inc.		49,236
	2,304	Patterson-UTI Energy, Inc.		45,504
	1,186	PBF Energy, Inc., Class A		38,165
	281	Pioneer Natural Resources Co.		46,674
	2,919	QEP Resources, Inc.		52,338
	1,212	Range Resources Corp.		53,461
	2,994	Rice Energy, Inc.(b)		51,826
	2,452	Rowan Cos. PLC, Class A		46,122
	2,799	RPC, Inc.		42,321
	11,485	Seadrill Ltd. (United Kingdom)(b)(c)		54,898
	2,179	SM Energy Co.		67,898
	5,202	Southwestern Energy Co.(b)		69,863

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

69

PowerShares Russell Midcap Equal Weight Portfolio (EQWM) (continued)

April 30, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Energy (continued)
	3,029	Superior Energy Services, Inc.	$	51,069
	1,377	Targa Resources Corp.		55,713
	2,651	Teekay Corp. (Bermuda)		29,691
	428	Tesoro Corp.		34,107
	5,258	Weatherford International PLC(b)		42,748
	5,397	Whiting Petroleum Corp.(b)		64,764
	810	World Fuel Services Corp.		37,851
	6,078	WPX Energy, Inc.(b)		58,713
				2,761,160
		Financials—10.0%
	82	Affiliated Managers Group, Inc.(b)		13,966
	138	Alexandria Real Estate Equities, Inc. REIT		12,827
	28	Alleghany Corp.(b)		14,596
	346	Allied World Assurance Co. Holdings AG		12,311
	678	Ally Financial, Inc.(b)		12,075
	270	American Campus Communities, Inc. REIT		12,082
	665	American Capital Agency Corp. REIT		12,216
	175	American Financial Group, Inc.		12,094
	792	American Homes 4 Rent, Class A REIT		12,529
	108	American National Insurance Co.		12,541
	132	Ameriprise Financial, Inc.		12,659
	478	AmTrust Financial Services, Inc.		11,878
	1,186	Annaly Capital Management, Inc. REIT		12,358
	121	Aon PLC		12,720
	304	Apartment Investment & Management Co., Class A REIT		12,178
	634	Apple Hospitality REIT, Inc. REIT		12,002
	176	Arch Capital Group Ltd. (Bermuda)(b)		12,406
	282	Arthur J. Gallagher & Co.		12,983
	422	Artisan Partners Asset Management, Inc., Class A		13,635
	259	Aspen Insurance Holdings Ltd. (Bermuda)		12,005
	684	Associated Banc-Corp.		12,476
	159	Assurant, Inc.		13,447
	495	Assured Guaranty Ltd.		12,806
	66	AvalonBay Communities, Inc. REIT		11,668
	224	Axis Capital Holdings Ltd.		11,932
	182	Bank of Hawaii Corp.		12,451
	358	BankUnited, Inc.		12,351
	217	BOK Financial Corp.		13,059
	99	Boston Properties, Inc. REIT		12,757
	901	Brandywine Realty Trust REIT		13,470
	499	Brixmor Property Group, Inc. REIT		12,600
	349	Brown & Brown, Inc.		12,253
	150	Camden Property Trust REIT		12,109
	521	Care Capital Properties, Inc. REIT		13,895
	1,089	CBL & Associates Properties, Inc. REIT		12,719
	190	CBOE Holdings, Inc.		11,772
	438	CBRE Group, Inc., Class A(b)		12,978
	898	Chimera Investment Corp. REIT		12,752
	189	Cincinnati Financial Corp.		12,476
	380	CIT Group, Inc.		13,137
	577	Citizens Financial Group, Inc.		13,184
	386	CNA Financial Corp.		12,198
	582	Columbia Property Trust, Inc. REIT		12,979
	319	Comerica, Inc.		14,164

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	277	Commerce Bancshares, Inc.	$	12,969
	570	Communications Sales & Leasing, Inc. REIT(b)		13,241
	478	Corporate Office Properties Trust REIT		12,275
	384	Corrections Corp. of America REIT		11,681
	68	Credit Acceptance Corp.(b)(c)		13,346
	144	Crown Castle International Corp. REIT		12,511
	218	Cullen/Frost Bankers, Inc.		13,950
	727	DDR Corp. REIT		12,722
	142	Digital Realty Trust, Inc. REIT		12,493
	417	Douglas Emmett, Inc. REIT		13,532
	564	Duke Realty Corp. REIT		12,335
	506	E*TRADE Financial Corp.(b)		12,741
	379	East West Bancorp, Inc.		14,209
	381	Eaton Vance Corp.		13,156
	714	Empire State Realty Trust, Inc., Class A REIT		13,216
	189	Endurance Specialty Holdings Ltd.		12,092
	42	Equinix, Inc. REIT		13,875
	446	Equity Commonwealth REIT(b)		12,448
	174	Equity LifeStyle Properties, Inc. REIT		11,917
	134	Erie Indemnity Co., Class A		12,648
	54	Essex Property Trust, Inc. REIT		11,904
	64	Everest Re Group Ltd.		11,834
	136	Extra Space Storage, Inc. REIT		11,553
	82	FactSet Research Systems, Inc.		12,361
	80	Federal Realty Investment Trust REIT		12,166
	437	Federated Investors, Inc., Class B		13,809
	723	Fifth Third Bancorp		13,238
	945	First Horizon National Corp.		13,306
	1,261	First Niagara Financial Group, Inc.		13,316
	185	First Republic Bank		13,009
	375	FNF Group		11,962
	592	Forest City Realty Trust, Inc., Class A REIT		12,302
	677	Four Corners Property Trust, Inc. REIT		12,017
	413	Gaming and Leisure Properties, Inc. REIT		13,542
	427	General Growth Properties, Inc. REIT		11,969
	4,590	Genworth Financial, Inc., Class A(b)		15,744
	138	Hanover Insurance Group, Inc. (The)		11,835
	268	Hartford Financial Services Group, Inc. (The)		11,894
	384	HCP, Inc. REIT		12,991
	430	Healthcare Trust of America, Inc., Class A REIT		12,423
	482	Hospitality Properties Trust REIT		12,334
	756	Host Hotels & Resorts, Inc. REIT		11,960
	124	Howard Hughes Corp. (The)(b)		13,041
	1,296	Huntington Bancshares, Inc.		13,038
	320	Interactive Brokers Group, Inc., Class A		12,160
	53	Intercontinental Exchange, Inc.		12,722
	405	Invesco Ltd.(d)		12,559
	373	Iron Mountain, Inc. REIT		13,626
	107	Jones Lang LaSalle, Inc.		12,323
	1,105	KeyCorp		13,580
	208	Kilroy Realty Corp. REIT		13,480
	441	Kimco Realty Corp. REIT		12,401
	288	Lamar Advertising Co., Class A REIT		17,867
	323	Lazard Ltd., Class A		11,644
	362	Legg Mason, Inc.		11,624
	1,598	LendingClub Corp.(b)		12,624

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

70

PowerShares Russell Midcap Equal Weight Portfolio (EQWM) (continued)

April 30, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	778	Leucadia National Corp.	$	12,977
	379	Liberty Property Trust REIT		13,227
	310	Lincoln National Corp.		13,469
	322	Loews Corp.		12,777
	515	LPL Financial Holdings, Inc.		13,596
	111	M&T Bank Corp.		13,133
	157	Macerich Co. (The) REIT		11,945
	14	Markel Corp.(b)		12,588
	223	Mercury General Corp.		11,797
	1,868	MFA Financial, Inc. REIT		12,908
	125	Mid-America Apartment Communities, Inc. REIT		11,964
	133	Moody’s Corp.		12,731
	143	Morningstar, Inc.		11,898
	173	MSCI, Inc.		13,138
	191	Nasdaq, Inc.		11,787
	269	National Retail Properties, Inc. REIT		11,771
	1,046	Navient Corp.		14,299
	791	New York Community Bancorp, Inc.		11,889
	190	Northern Trust Corp.		13,505
	1,112	NorthStar Asset Management Group, Inc.		13,833
	1,122	NorthStar Realty Europe Corp. REIT		13,385
	987	NorthStar Realty Finance Corp. REIT		12,624
	680	Old Republic International Corp.		12,573
	360	OMEGA Healthcare Investors, Inc. REIT		12,157
	474	OneMain Holdings, Inc.(b)		15,083
	849	Outfront Media, Inc. REIT		18,415
	331	PacWest Bancorp		13,233
	788	Paramount Group, Inc. REIT		13,160
	779	People’s United Financial, Inc.		12,074
	623	Piedmont Office Realty Trust, Inc., Class A REIT		12,404
	439	Popular, Inc.		13,047
	210	Post Properties, Inc. REIT		12,046
	314	Principal Financial Group, Inc.		13,401
	245	ProAssurance Corp.		11,694
	353	Progressive Corp. (The)		11,508
	287	Prologis, Inc. REIT		13,033
	262	Raymond James Financial, Inc.		13,669
	517	Rayonier, Inc. REIT		12,760
	361	Realogy Holdings Corp.(b)		12,902
	198	Realty Income Corp. REIT		11,722
	166	Regency Centers Corp. REIT		12,234
	1,534	Regions Financial Corp.		14,389
	128	Reinsurance Group of America, Inc.		12,188
	104	RenaissanceRe Holdings Ltd. (Bermuda)		11,535
	805	Retail Properties of America, Inc., Class A REIT		12,872
	126	S&P Global, Inc.		13,463
	1,391	Santander Consumer USA Holdings, Inc.(b)		18,319
	295	SEI Investments Co.		14,184
	714	Senior Housing Properties Trust REIT		12,552
	90	Signature Bank(b)		12,405
	131	SL Green Realty Corp. REIT		13,765
	1,945	SLM Corp.(b)		13,168
	1,114	Spirit Realty Capital, Inc. REIT		12,733
	644	Starwood Property Trust, Inc. REIT		12,468
	336	SunTrust Banks, Inc.		14,025
	124	SVB Financial Group(b)		12,931

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	435	Synchrony Financial(b)	$	13,298
	425	Synovus Financial Corp.		13,243
	170	T. Rowe Price Group, Inc.		12,799
	350	Tanger Factory Outlet Centers, Inc. REIT		12,278
	177	Taubman Centers, Inc. REIT		12,293
	1,006	TCF Financial Corp.		13,722
	397	TD Ameritrade Holding Corp.		11,842
	709	TFS Financial Corp.		12,691
	227	Torchmark Corp.		13,141
	1,566	Two Harbors Investment Corp. REIT		12,262
	330	UDR, Inc. REIT		11,524
	395	Unum Group		13,513
	266	Validus Holdings Ltd.		12,260
	199	Ventas, Inc. REIT		12,362
	1,400	VEREIT, Inc. REIT		12,432
	134	Vornado Realty Trust REIT		12,828
	405	Voya Financial, Inc.		13,150
	227	W.R. Berkley Corp.		12,712
	550	Waddell & Reed Financial, Inc., Class A		11,187
	333	Weingarten Realty Investors REIT		12,294
	183	Welltower, Inc. REIT		12,704
	403	Weyerhaeuser Co. REIT		12,944
	16	White Mountains Insurance Group Ltd.		13,280
	200	WP Carey, Inc. REIT		12,218
	1,352	WP GLIMCHER, Inc. REIT		14,182
	335	XL Group PLC		10,965
	499	Zions Bancorporation		13,732
				2,346,418
		Health Care—11.8%
	679	Acadia Healthcare Co., Inc.(b)		42,906
	919	Agilent Technologies, Inc.		37,605
	1,004	Agios Pharmaceuticals, Inc.(b)		49,146
	1,562	Akorn, Inc.(b)		39,753
	721	Alere, Inc.(b)		28,119
	516	Align Technology, Inc.(b)		37,250
	1,202	Alkermes PLC(b)		47,780
	2,989	Allscripts Healthcare Solutions, Inc.(b)		40,053
	618	Alnylam Pharmaceuticals, Inc.(b)		41,431
	420	AmerisourceBergen Corp.		35,742
	275	athenahealth, Inc.(b)		36,657
	460	BioMarin Pharmaceutical, Inc.(b)		38,953
	275	Bio-Rad Laboratories, Inc., Class A(b)		39,009
	390	Bio-Techne Corp.		36,340
	913	Bluebird Bio, Inc.(b)		40,492
	2,013	Boston Scientific Corp.(b)		44,125
	2,406	Brookdale Senior Living, Inc.(b)		44,415
	1,326	Bruker Corp.		37,526
	189	C.R. Bard, Inc.		40,100
	582	Centene Corp.(b)		36,061
	704	Cerner Corp.(b)		39,523
	490	Charles River Laboratories International, Inc.(b)		38,842
	2,134	Community Health Systems, Inc.(b)		40,717
	243	Cooper Cos., Inc. (The)		37,198
	508	DaVita HealthCare Partners, Inc.(b)		37,541
	602	Dentsply Sirona, Inc.		35,879
	611	DexCom, Inc.(b)		39,336

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

71

PowerShares Russell Midcap Equal Weight Portfolio (EQWM) (continued)

April 30, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Health Care (continued)
	419	Edwards Lifesciences Corp.(b)	$	44,502
	1,285	Endo International PLC(b)		34,695
	1,830	Envision Healthcare Holdings, Inc.(b)		41,413
	215	Henry Schein, Inc.(b)		36,270
	747	Hill-Rom Holdings, Inc.		36,117
	1,050	Hologic, Inc.(b)		35,269
	479	IDEXX Laboratories, Inc.(b)		40,404
	1,056	IMS Health Holdings, Inc.(b)		28,132
	531	Incyte Corp.(b)		38,375
	1,482	Inovalon Holdings, Inc., Class A(b)		25,342
	292	Intercept Pharmaceuticals, Inc.(b)		44,016
	1,051	Intrexon Corp.(b)		28,093
	65	Intuitive Surgical, Inc.(b)		40,713
	948	Ionis Pharmaceuticals, Inc.(b)		38,840
	311	Jazz Pharmaceuticals PLC(b)		46,868
	1,009	Juno Therapeutics, Inc.(b)		42,469
	318	Laboratory Corp. of America Holdings(b)		39,852
	549	LifePoint Health, Inc.(b)		37,090
	616	Mallinckrodt PLC(b)		38,512
	881	Medivation, Inc.(b)		50,922
	559	MEDNAX, Inc.(b)		39,851
	66	Mettler-Toledo International, Inc.(b)		23,625
	3,255	OPKO Health, Inc.(b)		34,991
	810	Patterson Cos., Inc.		35,113
	752	PerkinElmer, Inc.		37,916
	285	Perrigo Co. PLC		27,551
	1,126	Premier, Inc., Class A(b)		38,070
	1,026	Puma Biotechnology, Inc.(b)		31,488
	1,677	QIAGEN NV(b)		37,665
	516	Quest Diagnostics, Inc.		38,788
	570	Quintiles Transnational Holdings, Inc.(b)		39,370
	649	ResMed, Inc.		36,214
	1,080	Seattle Genetics, Inc.(b)		38,318
	688	St. Jude Medical, Inc.		52,426
	234	Teleflex, Inc.		36,453
	1,297	Tenet Healthcare Corp.(b)		41,102
	335	United Therapeutics Corp.(b)		35,242
	305	Universal Health Services, Inc., Class B		40,772
	466	Varian Medical Systems, Inc.(b)		37,830
	646	VCA, Inc.(b)		40,679
	1,502	Veeva Systems, Inc., Class A(b)		41,320
	1,403	VWR Corp.(b)		37,376
	173	Waters Corp.(b)		22,518
	348	Zimmer Biomet Holdings, Inc.		40,288
	861	Zoetis, Inc.		40,493
				2,755,852
		Industrials—12.6%
	298	A.O. Smith Corp.		23,012
	191	Acuity Brands, Inc.		46,583
	735	AECOM(b)		23,880
	443	AGCO Corp.		23,687
	727	Air Lease Corp.		22,159
	275	Alaska Air Group, Inc.		19,368
	354	Allegion PLC		23,169
	843	Allison Transmission Holdings, Inc.		24,287
	51	AMERCO		17,952

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrials (continued)
	456	AMETEK, Inc.	$	21,929
	449	Armstrong Flooring, Inc.(b)		6,537
	897	Armstrong World Industries, Inc.(b)		36,607
	671	Avis Budget Group, Inc.(b)		16,842
	486	B/E Aerospace, Inc.		23,634
	1,079	Babcock & Wilcox Enterprises, Inc.(b)		24,655
	665	BWX Technologies, Inc.		22,204
	304	C.H. Robinson Worldwide, Inc.		21,575
	230	Carlisle Cos., Inc.		23,437
	607	Chicago Bridge & Iron Co. NV		24,432
	253	Cintas Corp.		22,714
	469	Clean Harbors, Inc.(b)		23,169
	793	Colfax Corp.(b)		25,717
	338	Copa Holdings SA, Class A (Panama)		21,548
	556	Copart, Inc.(b)		23,819
	1,349	Covanta Holding Corp.		21,935
	422	Crane Co.		23,451
	695	Donaldson Co., Inc.		22,713
	350	Dover Corp.		22,995
	122	Dun & Bradstreet Corp. (The)		13,470
	110	Equifax, Inc.		13,227
	461	Expeditors International of Washington, Inc.		22,870
	848	Fastenal Co.		39,678
	511	Flowserve Corp.		24,942
	416	Fluor Corp.		22,739
	314	Fortune Brands Home & Security, Inc.		17,399
	486	GATX Corp.		22,327
	370	Genesee & Wyoming, Inc., Class A(b)		24,091
	275	Graco, Inc.		21,557
	690	HD Supply Holdings, Inc.(b)		23,653
	1,760	Hertz Global Holdings, Inc.(b)		16,298
	942	Hexcel Corp.		42,644
	221	Hubbell, Inc.		23,373
	163	Huntington Ingalls Industries, Inc.		23,598
	272	IDEX Corp.		22,277
	184	IHS, Inc., Class A(b)		22,665
	672	Ingersoll-Rand PLC		44,043
	618	ITT Corp.		23,713
	267	J.B. Hunt Transport Services, Inc.		22,129
	522	Jacobs Engineering Group, Inc.(b)		23,271
	1,080	JetBlue Airways Corp.(b)		21,373
	1,436	Joy Global, Inc.		30,587
	268	Kansas City Southern		25,393
	462	KAR Auction Services, Inc.		17,371
	1,490	KBR, Inc.		23,184
	1,039	Kennametal, Inc.		24,292
	380	Kirby Corp.(b)		24,252
	189	L-3 Communications Holdings, Inc.		24,859
	342	Landstar System, Inc.		22,418
	312	Lennox International, Inc.		42,104
	393	Lincoln Electric Holdings, Inc.		24,629
	344	Macquarie Infrastructure Corp.		24,214
	5,162	Manitowoc Co., Inc. (The)		29,423
	1,570	Manitowoc Foodservice, Inc.(b)		23,566
	282	ManpowerGroup, Inc.		21,722
	1,319	Masco Corp.		40,506

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

72

PowerShares Russell Midcap Equal Weight Portfolio (EQWM) (continued)

April 30, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrials (continued)
	217	Middleby Corp. (The)(b)	$	23,792
	302	MSC Industrial Direct Co., Inc., Class A		23,405
	330	Nielsen Holdings PLC		17,206
	297	Nordson Corp.		22,789
	2,120	NOW, Inc.(b)		38,287
	331	Old Dominion Freight Line, Inc.(b)		21,863
	263	Orbital ATK, Inc.		22,881
	555	Oshkosh Corp.		27,112
	868	Owens Corning		39,989
	417	PACCAR, Inc.		24,565
	204	Parker-Hannifin Corp.		23,668
	426	Pentair PLC (United Kingdom)		24,742
	1,072	Pitney Bowes, Inc.		22,480
	1,007	Quanta Services, Inc.(b)		23,886
	1,407	R.R. Donnelley & Sons Co.		24,482
	362	Regal Beloit Corp.		23,320
	464	Republic Services, Inc.		21,840
	506	Robert Half International, Inc.		19,385
	200	Rockwell Automation, Inc.		22,694
	244	Rockwell Collins, Inc.		21,518
	838	Rollins, Inc.		22,517
	124	Roper Technologies, Inc.		21,835
	351	Ryder System, Inc.		24,191
	142	Snap-on, Inc.		22,618
	1,830	SolarCity Corp.(b)		55,486
	512	Southwest Airlines Co.		22,840
	481	Spirit AeroSystems Holdings, Inc., Class A(b)		22,679
	476	Spirit Airlines, Inc.(b)		20,911
	1,588	SPX Corp.		25,567
	898	SPX FLOW, Inc.(b)		26,904
	216	Stanley Black & Decker, Inc.		24,175
	181	Stericycle, Inc.(b)		17,296
	891	Terex Corp.		21,286
	623	Textron, Inc.		24,098
	1,276	Timken Co. (The)		45,464
	258	Toro Co. (The)		22,304
	102	TransDigm Group, Inc.(b)		23,243
	462	TransUnion(b)		13,837
	1,239	Trinity Industries, Inc.		24,173
	740	Triumph Group, Inc.		26,773
	620	Tyco International PLC		23,882
	388	United Continental Holdings, Inc.(b)		17,774
	364	United Rentals, Inc.(b)		24,363
	1,732	USG Corp.(b)		46,781
	335	Valmont Industries, Inc.		47,027
	289	Verisk Analytics, Inc.(b)		22,421
	99	W.W. Grainger, Inc.		23,217
	165	WABCO Holdings, Inc.(b)		18,506
	289	Wabtec Corp.		23,967
	351	Waste Connections, Inc.		23,615
	310	Watsco, Inc.		41,686
	423	WESCO International, Inc.(b)		24,868
	563	Xylem, Inc.		23,522
				2,943,597

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology—12.5%
	1,800	3D Systems Corp.(b)	$	31,842
	845	Activision Blizzard, Inc.		29,127
	494	Akamai Technologies, Inc.(b)		25,189
	58	Alliance Data Systems Corp.(b)		11,792
	455	Amdocs Ltd.		25,726
	474	Amphenol Corp., Class A		26,463
	465	Analog Devices, Inc.		26,189
	311	ANSYS, Inc.(b)		28,229
	1,344	Applied Materials, Inc.		27,512
	460	Arista Networks, Inc.(b)		30,645
	1,181	ARRIS International PLC(b)		26,891
	434	Arrow Electronics, Inc.(b)		26,951
	1,131	Atlassian Corp. PLC, Class A (United Kingdom)(b)		26,205
	475	Autodesk, Inc.(b)		28,414
	618	Avnet, Inc.		25,412
	932	Black Knight Financial Services, Inc., Class A(b)		29,805
	759	Booz Allen Hamilton Holding Corp.		20,926
	214	Broadridge Financial Solutions, Inc.		12,806
	2,647	Brocade Communications Systems, Inc.		25,438
	883	CA, Inc.		26,190
	1,182	Cadence Design Systems, Inc.(b)		27,411
	594	CDK Global, Inc.		28,257
	666	CDW Corp.		25,641
	354	Citrix Systems, Inc.(b)		28,971
	720	Cognex Corp.		25,582
	1,026	CommScope Holding, Inc.(b)		31,201
	839	Computer Sciences Corp.		27,796
	374	CoreLogic, Inc.(b)		13,270
	122	CoStar Group, Inc.(b)		24,072
	931	Cree, Inc.(b)		22,819
	1,050	CSRA, Inc.		27,258
	3,189	Cypress Semiconductor Corp.		28,797
	652	Dolby Laboratories, Inc., Class A		31,042
	250	DST Systems, Inc.		30,170
	618	EchoStar Corp., Class A(b)		25,289
	420	Electronic Arts, Inc.(b)		25,977
	262	F5 Networks, Inc.(b)		27,444
	198	Fidelity National Information Services, Inc.		13,028
	1,549	FireEye, Inc.(b)		26,875
	1,025	First Data Corp., Class A(b)		11,675
	564	First Solar, Inc.(b)		31,494
	124	Fiserv, Inc.(b)		12,117
	1,275	Fitbit, Inc., Class A(b)(c)		23,269
	85	FleetCor Technologies, Inc.(b)		13,148
	675	FLIR Systems, Inc.		20,392
	948	Fortinet, Inc.(b)		30,819
	312	Gartner, Inc.(b)		27,197
	844	Genpact Ltd.(b)		23,539
	206	Global Payments, Inc.		14,869
	851	GoDaddy, Inc., Class A(b)		25,845
	349	Harris Corp.		27,923
	595	IAC/InterActiveCorp.		27,572
	749	Ingram Micro, Inc., Class A		26,178
	266	Intuit, Inc.		26,837
	284	IPG Photonics Corp.(b)		24,614
	1,434	Jabil Circuit, Inc.		24,894

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

73

PowerShares Russell Midcap Equal Weight Portfolio (EQWM) (continued)

April 30, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	149	Jack Henry & Associates, Inc.	$	12,073
	1,066	Juniper Networks, Inc.		24,944
	824	Keysight Technologies, Inc.(b)		21,490
	383	KLA-Tencor Corp.		26,787
	343	Lam Research Corp.		26,205
	550	Leidos Holdings, Inc.		27,286
	714	Lexmark International, Inc., Class A		27,560
	615	Linear Technology Corp.		27,355
	248	LinkedIn Corp., Class A(b)		31,077
	1,035	Lumentum Holdings, Inc.(b)		26,186
	2,663	Marvell Technology Group Ltd. (Bermuda)		26,577
	2,497	Match Group, Inc., Class A(b)		28,466
	763	Maxim Integrated Products, Inc.		27,254
	643	Microchip Technology, Inc.		31,243
	370	Motorola Solutions, Inc.		27,820
	764	National Instruments Corp.		21,063
	934	NCR Corp.(b)		27,170
	1,025	NetApp, Inc.		24,231
	410	NetSuite, Inc.(b)		33,226
	1,497	Nuance Communications, Inc.(b)		25,718
	779	NVIDIA Corp.		27,678
	2,885	ON Semiconductor Corp.(b)		27,321
	174	Palo Alto Networks, Inc.(b)		26,251
	1,799	Pandora Media, Inc.(b)		17,864
	414	Paychex, Inc.		21,578
	847	PTC, Inc.(b)		30,882
	553	Qorvo, Inc.(b)		24,902
	1,334	Rackspace Hosting, Inc.(b)		30,509
	369	Red Hat, Inc.(b)		27,074
	988	Sabre Corp.		28,603
	359	SanDisk Corp.		26,972
	450	ServiceNow, Inc.(b)		32,166
	353	Skyworks Solutions, Inc.		23,587
	578	Splunk, Inc.(b)		30,044
	921	Square, Inc., Class A(b)(c)		13,714
	438	SS&C Technologies Holdings, Inc.		26,784
	1,758	SunPower Corp.(b)		35,406
	1,470	Symantec Corp.		24,468
	570	Synopsys, Inc.(b)		27,086
	618	Tableau Software, Inc., Class A(b)		31,951
	1,037	Teradata Corp.(b)		26,236
	1,290	Teradyne, Inc.		24,394
	270	Total System Services, Inc.		13,808
	921	Trimble Navigation Ltd.(b)		22,058
	1,740	Twitter, Inc.(b)		25,439
	149	Ultimate Software Group, Inc. (The)(b)		29,292
	234	Vantiv, Inc., Class A(b)		12,762
	978	VeriFone Systems, Inc.(b)		27,834
	306	VeriSign, Inc.(b)		26,438
	4,045	Viavi Solutions, Inc.(b)		26,333
	565	Western Digital Corp.		23,089
	655	Western Union Co. (The)		13,100
	150	WEX, Inc.(b)		14,174
	376	Workday, Inc., Class A(b)		28,192
	2,105	Xerox Corp.		20,208
	577	Xilinx, Inc.		24,857
	1,431	Yelp, Inc., Class A(b)		30,051

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	332	Zebra Technologies Corp., Class A(b)	$	20,770
	511	Zillow Group, Inc., Class A(b)		12,785
	551	Zillow Group, Inc., Class C(b)		13,246
	12,450	Zynga, Inc., Class A(b)		29,631
				2,918,302
		Materials—9.3%
	291	Airgas, Inc.		41,450
	663	Albemarle Corp.		43,864
	4,243	Alcoa, Inc.		47,394
	2,541	Allegheny Technologies, Inc.		41,520
	525	AptarGroup, Inc.		39,900
	381	Ashland, Inc.		42,520
	315	Avery Dennison Corp.		22,872
	1,434	Axalta Coating Systems Ltd.(b)		40,826
	585	Ball Corp.		41,757
	790	Bemis Co., Inc.		39,642
	847	Cabot Corp.		41,325
	634	Celanese Corp., Series A		44,824
	1,295	CF Industries Holdings, Inc.		42,826
	574	Compass Minerals International, Inc.		43,027
	848	Crown Holdings, Inc.(b)		44,910
	1,098	Domtar Corp.		42,427
	595	Eagle Materials, Inc.		44,101
	565	Eastman Chemical Co.		43,155
	1,008	FMC Corp.		43,606
	4,060	Freeport-McMoRan, Inc.		56,840
	2,050	GCP Applied Technologies, Inc.(b)		45,366
	3,226	Graphic Packaging Holding Co.		42,841
	3,188	Huntsman Corp.		50,179
	362	International Flavors & Fragrances, Inc.		43,248
	1,007	International Paper Co.		43,573
	268	Martin Marietta Materials, Inc.		45,354
	1,472	Mosaic Co. (The)		41,201
	106	NewMarket Corp.		43,042
	1,602	Newmont Mining Corp.		56,022
	879	Nucor Corp.		43,757
	2,597	Owens-Illinois, Inc.(b)		47,941
	699	Packaging Corp. of America		45,351
	4,953	Platform Specialty Products Corp.(b)		51,016
	599	Reliance Steel & Aluminum Co.		44,308
	832	Royal Gold, Inc.		52,100
	885	RPM International, Inc.		44,719
	568	Scotts Miracle-Gro Co. (The), Class A		40,203
	861	Sealed Air Corp.		40,777
	145	Sherwin-Williams Co. (The)		41,660
	780	Silgan Holdings, Inc.		39,577
	856	Sonoco Products Co.		40,138
	1,843	Steel Dynamics, Inc.		46,462
	3,946	Tahoe Resources, Inc.		55,757
	2,644	United States Steel Corp.		50,527
	386	Valspar Corp. (The)		41,182
	390	Vulcan Materials Co.		41,976
	584	W.R. Grace & Co.(b)		44,781
	885	Westlake Chemical Corp.		44,418
	1,070	WestRock Co.		44,780
				2,161,042

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

74

PowerShares Russell Midcap Equal Weight Portfolio (EQWM) (continued)

April 30, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Telecommunication Services—1.9%
	1,858	CenturyLink, Inc.	$	57,505
	10,884	Frontier Communications Corp.		60,515
	1,099	Level 3 Communications, Inc.(b)		57,434
	278	SBA Communications Corp., Class A(b)		28,645
	17,403	Sprint Corp.(b)		59,692
	1,951	Telephone & Data Systems, Inc.		57,691
	1,298	United States Cellular Corp.(b)		55,347
	2,433	Zayo Group Holdings, Inc.(b)		63,161
				439,990
		Utilities—9.3%
	4,919	AES Corp. (The)		54,896
	866	AGL Resources, Inc.		57,035
	771	Alliant Energy Corp.		54,371
	1,141	Ameren Corp.		54,768
	859	American Water Works Co., Inc.		62,501
	1,777	Aqua America, Inc.		56,260
	774	Atmos Energy Corp.		56,154
	1,438	Avangrid, Inc.(b)		57,664
	4,022	Calpine Corp.(b)		63,467
	2,776	CenterPoint Energy, Inc.		59,545
	1,348	CMS Energy Corp.		54,837
	743	Consolidated Edison, Inc.		55,428
	629	DTE Energy Co.		56,082
	787	Edison International		55,649
	718	Entergy Corp.		53,979
	972	Eversource Energy		54,860
	1,570	FirstEnergy Corp.		51,166
	1,824	Great Plains Energy, Inc.		56,963
	1,751	Hawaiian Electric Industries, Inc.		57,240
	1,352	ITC Holdings Corp.		59,583
	3,056	MDU Resources Group, Inc.		61,303
	1,123	National Fuel Gas Co.		62,326
	2,449	NiSource, Inc.		55,617
	4,403	NRG Energy, Inc.		66,485
	1,996	OGE Energy Corp.		59,062
	772	Pinnacle West Capital Corp.		56,086
	1,554	PPL Corp.		58,492
	1,253	Public Service Enterprise Group, Inc.		57,801
	2,282	Questar Corp.		57,210
	816	SCANA Corp.		56,051
	553	Sempra Energy		57,152
	2,099	TECO Energy, Inc.		58,289
	4,556	TerraForm Power, Inc., Class A		48,658
	1,410	UGI Corp.		56,738
	1,121	Vectren Corp.		54,761
	967	WEC Energy Group, Inc.		56,289
	1,175	Westar Energy, Inc.		60,642
	1,404	Xcel Energy, Inc.		56,202
				2,171,612
		Total Common Stocks and Other Equity Interests (Cost $25,173,477)		23,357,284

Number of Shares			Value
		Money Market Fund—0.1%
	27,078	Invesco Premier Portfolio—Institutional Class, 0.39%(e) (Cost $27,078)	$	27,078
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $25,200,555)—100.1%		23,384,362
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—0.4%
	97,802	Invesco Liquid Assets Portfolio—Institutional Class, 0.44%(e)(f) (Cost $97,802)		97,802
		Total Investments (Cost $25,298,357)—100.5%		23,482,164
		Other assets less liabilities—(0.5)%		(124,830	)
		Net Assets—100.0%	$	23,357,334

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, 2016.

^(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. The rate shown is the 7-day SEC standardized yield as of April 30, 2016.

^(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 2H.

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

75

Schedule of Investments^(a)

PowerShares Russell Midcap Pure Growth Portfolio (PXMG)

April 30, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.1%
		Consumer Discretionary—26.2%
	3,843	Advance Auto Parts, Inc.	$	599,892
	5,927	CarMax, Inc.(b)		313,835
	5,528	Carter’s, Inc.		589,672
	2,067	Chipotle Mexican Grill, Inc.(b)		870,145
	12,735	Dollar Tree, Inc.(b)		1,015,107
	8,606	Expedia, Inc., Class A		996,317
	3,946	Extended Stay America, Inc.		61,755
	10,372	GoPro, Inc., Class A(b)		131,102
	46,885	Groupon, Inc. (b)		169,724
	8,471	Hilton Worldwide Holdings, Inc.		186,785
	22,183	Lions Gate Entertainment Corp.		492,462
	11,242	Lululemon Athletica, Inc.(b)		736,913
	1,415	Marriott International, Inc., Class A		99,177
	2,370	Nordstrom, Inc.		121,178
	569	NVR, Inc.(b)		945,274
	4,229	O’Reilly Automotive, Inc.(b)		1,110,874
	7,686	Polaris Industries, Inc.		752,306
	6,870	Ross Stores, Inc.		390,079
	12,037	Scripps Networks Interactive, Inc., Class A		750,507
	24,141	Six Flags Entertainment Corp.		1,449,667
	18,709	Tempur Sealy International, Inc.(b)		1,135,075
	9,746	Tractor Supply Co.		922,556
	9,970	TripAdvisor, Inc., Class A(b)		643,962
	7,855	Ulta Salon, Cosmetics & Fragrance, Inc.(b)		1,636,039
	14,656	Under Armour, Inc., Class A(b)		643,985
	14,656	Under Armour, Inc., Class C(b)		597,965
	1,211	Williams-Sonoma, Inc.		71,182
	1,827	Wyndham Worldwide Corp.		129,626
				17,563,161
		Consumer Staples—2.5%
	1,513	Hain Celestial Group, Inc. (The)(b)		63,334
	792	Mead Johnson Nutrition Co.		69,023
	7,297	Monster Beverage Corp.(b)		1,052,373
	17,120	Sprouts Farmers Market, Inc.(b)		480,559
				1,665,289
		Energy—0.7%
	36,961	Memorial Resource Development Corp.(b)		483,450
		Financials—6.4%
	1,940	Affiliated Managers Group, Inc.(b)		330,421
	21,580	CBRE Group, Inc., Class A(b)		639,415
	1,697	Credit Acceptance Corp.(b)(c)		333,070
	1,531	Crown Castle International Corp. REIT		133,013
	620	Eaton Vance Corp.		21,409
	3,719	Equinix, Inc. REIT		1,228,572
	5,397	Extra Space Storage, Inc. REIT		458,475
	103	FactSet Research Systems, Inc.		15,527
	33,452	LendingClub Corp.(b)		264,271
	240	Moody’s Corp.		22,973
	872	MSCI, Inc.		66,220
	30,160	NorthStar Asset Management Group, Inc.		375,190
	6,510	SEI Investments Co.		313,001
	3,001	Tanger Factory Outlet Centers, Inc. REIT		105,275
				4,306,832

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Health Care—18.5%
	2,439	Agios Pharmaceuticals, Inc.(b)	$	119,389
	27,807	Akorn, Inc.(b)		707,688
	14,021	Align Technology, Inc.(b)		1,012,176
	7,607	AmerisourceBergen Corp.		647,356
	1,594	Bluebird Bio, Inc.(b)		70,694
	10,657	Centene Corp.(b)		660,308
	17,416	Cerner Corp.(b)		977,734
	4,743	DexCom, Inc.(b)		305,354
	13,353	Edwards Lifesciences Corp.(b)		1,418,222
	2,606	Envision Healthcare Holdings, Inc.(b)		58,974
	1,900	IDEXX Laboratories, Inc.(b)		160,265
	2,542	IMS Health Holdings, Inc.(b)		67,719
	4,269	Incyte Corp.(b)		308,520
	1,520	Inovalon Holdings, Inc., Class A(b)		25,992
	1,220	Intercept Pharmaceuticals, Inc.(b)		183,903
	5,513	Intrexon Corp.(b)		147,362
	133	Intuitive Surgical, Inc.(b)		83,306
	3,736	Ionis Pharmaceuticals, Inc.(b)		153,064
	6,821	Jazz Pharmaceuticals PLC(b)		1,027,925
	5,854	Juno Therapeutics, Inc.(b)		246,395
	3,685	Medivation, Inc.(b)		212,993
	1,644	Mettler-Toledo International, Inc.(b)		588,470
	36,853	OPKO Health, Inc.(b)		396,170
	1,632	Puma Biotechnology, Inc.(b)		50,086
	13,673	Seattle Genetics, Inc.(b)		485,118
	20,987	Tenet Healthcare Corp.(b)		665,078
	6,662	United Therapeutics Corp.(b)		700,842
	32,461	Veeva Systems, Inc., Class A(b)		893,002
				12,374,105
		Industrials—12.7%
	3,082	Acuity Brands, Inc.		751,669
	11,494	Avis Budget Group, Inc.(b)		288,499
	1,779	B/E Aerospace, Inc.		86,513
	2,032	C.H. Robinson Worldwide, Inc.		144,211
	4,517	Cintas Corp.		405,536
	12,805	Fastenal Co.		599,146
	6,053	J.B. Hunt Transport Services, Inc.		501,673
	2,510	Landstar System, Inc.		164,531
	8,916	Middleby Corp. (The)(b)		977,550
	6,525	Nordson Corp.		500,663
	1,343	Old Dominion Freight Line, Inc.(b)		88,705
	14,598	Robert Half International, Inc.		559,249
	5,288	Spirit Airlines, Inc.(b)		232,302
	6,497	Stericycle, Inc.(b)		620,853
	4,910	Toro Co. (The)		424,470
	6,908	United Rentals, Inc.(b)		462,353
	10,976	Verisk Analytics, Inc.(b)		851,518
	3,369	WABCO Holdings, Inc.(b)		377,867
	1,583	Wabtec Corp.		131,278
	2,759	Watsco, Inc.		371,003
				8,539,589
		Information Technology—30.0%
	2,329	Alliance Data Systems Corp.(b)		473,509
	8,571	Amphenol Corp., Class A		478,519
	11,170	Arista Networks, Inc.(b)		744,145

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

76

PowerShares Russell Midcap Pure Growth Portfolio (PXMG) (continued)

April 30, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	5,505	CDK Global, Inc.	$	261,873
	12,957	CDW Corp.		498,844
	3,412	Citrix Systems, Inc.(b)		279,238
	16,439	Cognex Corp.		584,078
	1,962	CoStar Group, Inc.(b)		387,122
	7,706	F5 Networks, Inc.(b)		807,204
	3,352	FireEye, Inc.(b)		58,157
	3,664	Fiserv, Inc.(b)		358,046
	7,870	FleetCor Technologies, Inc.(b)		1,217,332
	28,687	Fortinet, Inc.(b)		932,614
	5,945	Gartner, Inc.(b)		518,226
	19,173	Global Payments, Inc.		1,383,907
	10,795	GoDaddy, Inc., Class A(b)		327,844
	5,797	IPG Photonics Corp.(b)		502,426
	2,449	Jack Henry & Associates, Inc.		198,442
	3,962	LinkedIn Corp., Class A(b)		496,478
	8,199	Microchip Technology, Inc.		398,389
	13,695	NetSuite, Inc.(b)		1,109,843
	5,217	Palo Alto Networks, Inc.(b)		787,089
	22,918	Rackspace Hosting, Inc.(b)		524,135
	14,550	Red Hat, Inc.(b)		1,067,534
	32,231	Sabre Corp.		933,087
	2,967	ServiceNow, Inc.(b)		212,081
	10,894	Skyworks Solutions, Inc.		727,937
	3,370	Splunk, Inc.(b)		175,173
	3,741	Tableau Software, Inc., Class A(b)		193,410
	20,254	Twitter, Inc.(b)		296,113
	7,525	Ultimate Software Group, Inc. (The)(b)		1,479,340
	10,793	Vantiv, Inc., Class A(b)		588,650
	9,169	VeriFone Systems, Inc.(b)		260,950
	2,877	Workday, Inc., Class A(b)		215,717
	2,037	Yelp, Inc., Class A(b)		42,777
	9,362	Zebra Technologies Corp., Class A(b)		585,687
				20,105,916
		Materials—3.1%
	9,918	Axalta Coating Systems Ltd.(b)		282,365
	4,928	Eagle Materials, Inc.		365,263
	3,674	Sealed Air Corp.		174,001
	1,783	Sherwin-Williams Co. (The)		512,274
	6,656	Valspar Corp. (The)		710,129
				2,044,032
		Total Common Stocks and Other Equity Interests (Cost $74,058,266)		67,082,374
		Money Market Fund—0.0%
	1,091	Invesco Premier Portfolio—Institutional Class, 0.39%(d) (Cost $1,091)		1,091
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $74,059,357)—100.1%		67,083,465

Number of Shares			Value
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—0.3%
	196,587	Invesco Liquid Assets Portfolio—Institutional Class, 0.44%(d)(e) (Cost $196,587)	$	196,587
		Total Investments (Cost $74,255,944)—100.4%		67,280,052
		Other assets less liabilities—(0.4)%		(265,058	)
		Net Assets—100.0%	$	67,014,994

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, 2016.

^(d)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of April 30, 2016.

^(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 2H.

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

77

Schedule of Investments^(a)

PowerShares Russell Midcap Pure Value Portfolio (PXMV)

April 30, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—2.5%
	21	Cable One, Inc.	$	9,638
	21	Graham Holdings Co., Class B		10,007
	19,943	J.C. Penney Co., Inc.(b)(c)		185,071
	3,222	John Wiley & Sons, Inc., Class A		159,779
	44,854	Staples, Inc.		457,511
	5,977	Tribune Media Co., Class A		230,413
	18,525	Wendy’s Co. (The)		201,182
				1,253,601
		Consumer Staples—1.3%
	6,722	Molson Coors Brewing Co., Class B		642,825
		Energy—10.6%
	8,556	California Resources Corp.		18,823
	5,550	Cheniere Energy, Inc.(c)		215,784
	4,626	Columbia Pipeline Group, Inc.		118,518
	22,098	CONSOL Energy, Inc.(b)		332,575
	25,152	Diamond Offshore Drilling, Inc.		610,187
	5,979	Energen Corp.		254,048
	5,844	EP Energy Corp., Class A(b)(c)		28,694
	13,114	Golar LNG Ltd. (Bermuda)(b)		217,430
	11,487	Hess Corp.		684,855
	4,944	Laredo Petroleum, Inc.(c)		60,218
	26,921	Marathon Oil Corp.		379,317
	12,770	Murphy Oil Corp.		456,400
	19,541	Newfield Exploration Co.(c)		708,361
	47,050	Noble Corp. PLC (United Kingdom)(b)		528,371
	20,312	QEP Resources, Inc.		364,194
	51,771	Seadrill Ltd. (United Kingdom)(b)(c)		247,465
	2,074	Southwestern Energy Co.(c)		27,854
	4,136	Weatherford International PLC(c)		33,626
	6,019	WPX Energy, Inc.(c)		58,144
				5,344,864
		Financials—41.2%
	189	Alexandria Real Estate Equities, Inc. REIT		17,568
	25,219	American Capital Agency Corp. REIT		463,273
	28,115	American Homes 4 Rent, Class A REIT		444,779
	448	American National Insurance Co.		52,022
	59,073	Annaly Capital Management, Inc. REIT		615,541
	528	Arch Capital Group Ltd. (Bermuda)(c)		37,219
	7,842	Associated Banc-Corp.		143,038
	257	AvalonBay Communities, Inc. REIT		45,435
	1,226	Bank of Hawaii Corp.		83,871
	7,582	BOK Financial Corp.(b)		456,285
	15,043	Brandywine Realty Trust REIT		224,893
	1,324	Camden Property Trust REIT		106,886
	22,899	CBL & Associates Properties, Inc. REIT		267,460
	10,365	Cincinnati Financial Corp.		684,194
	11,132	CIT Group, Inc.		384,833
	9,725	CNA Financial Corp.		307,310
	11,773	Comerica, Inc.		522,721
	9,178	Commerce Bancshares, Inc.		429,714
	2,996	Corrections Corp. of America REIT		91,138
	2,995	Cullen/Frost Bankers, Inc.		191,650
	23,123	DDR Corp. REIT		404,652
	17,787	Duke Realty Corp. REIT		389,002

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	2,845	E*TRADE Financial Corp.(c)	$	71,637
	2,590	East West Bancorp, Inc.		97,099
	7,421	Endurance Specialty Holdings Ltd.		474,796
	15,623	Equity Commonwealth REIT(c)		436,038
	29,036	Fifth Third Bancorp		531,649
	27,623	First Horizon National Corp.		388,932
	32,254	First Niagara Financial Group, Inc.		340,602
	32,630	Genworth Financial, Inc., Class A(c)		111,921
	459	Hartford Financial Services Group, Inc. (The)		20,370
	4,870	HCP, Inc. REIT		164,752
	20,134	Host Hotels & Resorts, Inc. REIT		318,520
	8,482	Liberty Property Trust REIT		296,022
	11,293	Loews Corp.		448,106
	7,818	M&T Bank Corp.		925,026
	404	Macerich Co. (The) REIT		30,736
	7,038	Mercury General Corp.		372,310
	25,815	MFA Financial, Inc. REIT		178,382
	1,481	Mid-America Apartment Communities, Inc. REIT		141,746
	11,536	National Retail Properties, Inc. REIT		504,815
	7,839	Navient Corp.		107,159
	32,041	New York Community Bancorp, Inc.		481,576
	5,204	NorthStar Realty Europe Corp. REIT		62,084
	15,733	NorthStar Realty Finance Corp. REIT		201,225
	12,130	Paramount Group, Inc. REIT		202,571
	5,614	Popular, Inc.		166,848
	5,545	Principal Financial Group, Inc.		236,661
	10,936	ProAssurance Corp.		521,975
	14,066	Prologis, Inc. REIT		638,737
	14,531	Rayonier, Inc. REIT		358,625
	8,685	Realty Income Corp. REIT		514,152
	39,412	Regions Financial Corp.		369,685
	762	Reinsurance Group of America, Inc.		72,558
	4,514	RenaissanceRe Holdings Ltd. (Bermuda)		500,648
	13,602	Retail Properties of America, Inc., Class A REIT		217,496
	4,308	SL Green Realty Corp. REIT		452,685
	18,991	Starwood Property Trust, Inc. REIT		367,666
	11,261	SunTrust Banks, Inc.		470,034
	7,704	UDR, Inc. REIT		269,024
	7,859	Unum Group		268,856
	5,487	Validus Holdings Ltd.		252,896
	20,134	VEREIT, Inc. REIT		178,790
	949	White Mountains Insurance Group Ltd.		787,670
	5,078	WP Carey, Inc. REIT		310,215
	11,017	WP GLIMCHER, Inc. REIT		115,568
	5,627	XL Group PLC		184,172
	8,645	Zions Bancorporation		237,910
				20,764,429
		Health Care—0.8%
	2,964	Bio-Rad Laboratories, Inc., Class A(c)		420,443
		Industrials—6.5%
	3,324	AGCO Corp.		177,734
	10,855	Jacobs Engineering Group, Inc.(c)		483,916
	16,405	Joy Global, Inc.(b)		349,427
	3,537	L-3 Communications Holdings, Inc.		465,222

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

78

PowerShares Russell Midcap Pure Value Portfolio (PXMV) (continued)

April 30, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrials (continued)
	1,640	ManpowerGroup, Inc.	$	126,329
	9,892	Orbital ATK, Inc.		860,604
	2,405	Oshkosh Corp.		117,484
	6,931	Republic Services, Inc.		326,242
	7,207	SPX Corp.		116,033
	7,188	SPX FLOW, Inc.(c)		215,352
	974	Timken Co. (The)		34,704
				3,273,047
		Information Technology—4.9%
	14,130	Brocade Communications Systems, Inc.		135,789
	8,942	CA, Inc.		265,220
	6,833	Dolby Laboratories, Inc., Class A		325,319
	13,678	First Solar, Inc.(c)		763,780
	13,199	Lexmark International, Inc., Class A		509,481
	5,808	Marvell Technology Group Ltd. (Bermuda)		57,964
	42,669	Xerox Corp.		409,622
				2,467,175
		Materials—5.5%
	7,218	Albemarle Corp.		477,543
	3,001	Allegheny Technologies, Inc.(b)		49,036
	9,356	Cabot Corp.		456,479
	11,095	Domtar Corp.		428,711
	11,422	Freeport-McMoRan, Inc.		159,908
	18,971	Newmont Mining Corp.		663,416
	28,941	United States Steel Corp.(b)		553,063
				2,788,156
		Telecommunication Services—2.9%
	1,205	CenturyLink, Inc.		37,295
	91,043	Frontier Communications Corp.(b)		506,199
	23,981	Sprint Corp.(b)(c)		82,255
	11,252	Telephone & Data Systems, Inc.		332,722
	11,410	United States Cellular Corp.(c)		486,522
				1,444,993
		Utilities—23.8%
	14,687	AES Corp. (The)		163,907
	1,541	AGL Resources, Inc.		101,490
	3,477	Alliant Energy Corp.		245,198
	12,595	Ameren Corp.		604,560
	7,767	Atmos Energy Corp.		563,496
	24,024	CenterPoint Energy, Inc.		515,315
	4,333	CMS Energy Corp.		176,266
	9,646	Consolidated Edison, Inc.		719,592
	6,768	DTE Energy Co.		603,435
	10,207	Edison International		721,737
	5,164	Entergy Corp.		388,230
	10,013	Eversource Energy		565,134
	16,412	FirstEnergy Corp.		534,867
	8,997	Great Plains Energy, Inc.		280,976
	13,691	Hawaiian Electric Industries, Inc.		447,559
	12,022	MDU Resources Group, Inc.		241,161
	6,231	National Fuel Gas Co.		345,820
	4,624	NiSource, Inc.		105,011
	7,189	OGE Energy Corp.		212,723
	9,385	Pinnacle West Capital Corp.		681,820

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Utilities (continued)
	10,021	PPL Corp.	$	377,190
	9,168	Public Service Enterprise Group, Inc.		422,920
	10,796	SCANA Corp.		741,577
	64	Sempra Energy		6,614
	22,518	TECO Energy, Inc.		625,325
	300	UGI Corp.		12,072
	9,760	WEC Energy Group, Inc.		568,130
	6,754	Westar Energy, Inc.		348,574
	16,108	Xcel Energy, Inc.		644,803
				11,965,502
		Total Common Stocks and Other Equity Interests (Cost $51,771,467)		50,365,035
		Money Market Fund—0.1%
	40,835	Invesco Premier Portfolio—Institutional Class, 0.39%(d) (Cost $40,835)		40,835
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $51,812,302)—100.1%		50,405,870
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—4.7%
	2,364,817	Invesco Liquid Assets Portfolio—Institutional Class, 0.44%(d)(e) (Cost $2,364,817)		2,364,817
		Total Investments (Cost $54,177,119)—104.8%		52,770,687
		Other assets less liabilities—(4.8)%		(2,407,091	)
		Net Assets-100.0%	$	50,363,596

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)  All or a portion of this security was out on loan at April 30, 2016.

^(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. The rate shown is the 7-day SEC standardized yield as of April 30, 2016.

^(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 2H.

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

79

Schedule of Investments^(a)

PowerShares Russell Top 200 Equal Weight Portfolio (EQWL)

April 30, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests—99.9%
		Consumer Discretionary—14.0%
	287	Amazon.com, Inc.(b)	$	189,302
	3,394	Carnival Corp.		166,476
	3,047	CBS Corp., Class B		170,358
	2,769	Comcast Corp., Class A		168,245
	3,501	DISH Network Corp., Class A(b)		172,564
	12,712	Ford Motor Co.		172,375
	5,364	General Motors Co.		170,575
	1,269	Home Depot, Inc. (The)		169,906
	4,359	Johnson Controls, Inc.		180,463
	3,204	Las Vegas Sands Corp.		144,661
	2,218	Lowe’s Cos., Inc.		168,612
	1,351	McDonald’s Corp.		170,888
	1,644	Netflix, Inc.(b)		148,009
	2,712	NIKE, Inc., Class B		159,845
	129	Priceline Group, Inc. (The)(b)		173,332
	2,822	Starbucks Corp.		158,681
	2,010	Target Corp.		159,795
	722	Tesla Motors, Inc.(b)		173,829
	4,177	Thomson Reuters Corp.		171,800
	819	Time Warner Cable, Inc.		173,718
	2,294	Time Warner, Inc.		172,371
	2,140	TJX Cos., Inc. (The)		162,255
	5,966	Twenty-First Century Fox, Inc., Class A		180,531
	5,945	Twenty-First Century Fox, Inc., Class B		179,063
	2,585	VF Corp.		162,984
	4,122	Viacom, Inc., Class B		168,590
	1,696	Walt Disney Co. (The)		175,129
	2,085	Yum! Brands, Inc.		165,883
				4,730,240
		Consumer Staples—8.8%
	2,700	Altria Group, Inc.		169,317
	4,578	Archer-Daniels-Midland Co.		182,845
	3,633	Coca-Cola Co. (The)		162,758
	2,380	Colgate-Palmolive Co.		168,790
	1,090	Costco Wholesale Corp.		161,462
	1,634	CVS Health Corp.		164,217
	1,777	Estee Lauder Cos., Inc. (The), Class A		170,361
	2,689	General Mills, Inc.		164,943
	1,239	Kimberly-Clark Corp.		155,110
	2,140	Kraft Heinz Co. (The)		167,070
	4,372	Kroger Co. (The)		154,725
	4,219	Mondelez International, Inc., Class A		181,248
	1,648	PepsiCo, Inc.		169,678
	1,700	Philip Morris International, Inc.		166,804
	2,014	Procter & Gamble Co. (The)		161,362
	3,298	Reynolds American, Inc.		163,581
	2,010	Walgreens Boots Alliance, Inc.		159,353
	2,442	Wal-Mart Stores, Inc.		163,297
				2,986,921
		Energy—9.2%
	3,646	Anadarko Petroleum Corp.		192,363
	3,437	Apache Corp.		186,973
	3,793	Baker Hughes, Inc.		183,430
	1,758	Chevron Corp.		179,632
	4,193	ConocoPhillips		200,384

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Energy (continued)
	6,439	Devon Energy Corp.	$	223,305
	2,233	EOG Resources, Inc.		184,490
	1,976	Exxon Mobil Corp.		174,678
	4,742	Halliburton Co.		195,892
	9,343	Kinder Morgan, Inc.		165,932
	4,499	Marathon Petroleum Corp.		175,821
	2,446	Occidental Petroleum Corp.		187,486
	1,902	Phillips 66		156,173
	2,286	Schlumberger Ltd.		183,657
	5,470	Spectra Energy Corp.		171,047
	2,551	Valero Energy Corp.		150,177
	10,990	Williams Cos., Inc. (The)		213,096
				3,124,536
		Financials—15.8%
	2,635	Aflac, Inc.		181,736
	2,490	Allstate Corp. (The)		161,974
	2,761	American Express Co.		180,652
	3,116	American International Group, Inc.		173,935
	1,660	American Tower Corp. REIT		174,101
	12,217	Bank of America Corp.		177,880
	4,456	Bank of New York Mellon Corp. (The)		179,309
	4,958	BB&T Corp.		175,414
	1,178	Berkshire Hathaway, Inc., Class B(b)		171,375
	494	BlackRock, Inc.		176,027
	2,405	Capital One Financial Corp.		174,098
	5,924	Charles Schwab Corp. (The)		168,301
	1,396	Chubb Ltd.		164,533
	3,969	Citigroup, Inc.		183,685
	1,747	CME Group, Inc., Class A		160,567
	3,376	Discover Financial Services		189,968
	2,258	Equity Residential REIT		153,702
	4,342	Franklin Resources, Inc.		162,130
	1,081	Goldman Sachs Group, Inc. (The)		177,403
	2,801	JPMorgan Chase & Co.		177,023
	2,771	Marsh & McLennan Cos., Inc.		174,989
	3,869	MetLife, Inc.		174,492
	6,731	Morgan Stanley		182,141
	1,961	PNC Financial Services Group, Inc. (The)		172,137
	2,311	Prudential Financial, Inc.		179,426
	617	Public Storage REIT		151,048
	820	Simon Property Group, Inc. REIT		164,959
	2,848	State Street Corp.		177,430
	1,432	Travelers Cos., Inc. (The)		157,377
	4,089	U.S. Bancorp		174,559
	3,417	Wells Fargo & Co.		170,782
				5,343,153
		Health Care—16.2%
	4,071	Abbott Laboratories		158,362
	2,966	AbbVie, Inc.		180,926
	1,485	Aetna, Inc.		166,721
	1,256	Alexion Pharmaceuticals, Inc.(b)		174,936
	603	Allergan PLC(b)		130,586
	1,121	Amgen, Inc.		177,454
	1,192	Anthem, Inc.		167,798
	4,181	Baxalta, Inc.		175,393

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

80

PowerShares Russell Top 200 Equal Weight Portfolio (EQWL) (continued)

April 30, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Health Care (continued)
	4,110	Baxter International, Inc.	$	181,744
	1,116	Becton, Dickinson and Co.		179,966
	661	Biogen, Inc.(b)		181,768
	2,651	Bristol-Myers Squibb Co.		191,349
	2,060	Cardinal Health, Inc.		161,628
	1,677	Celgene Corp.(b)		173,418
	1,209	Cigna Corp.		167,495
	2,356	Eli Lilly & Co.		177,949
	2,459	Express Scripts Holding Co.(b)		181,302
	1,800	Gilead Sciences, Inc.		158,778
	2,177	HCA Holdings, Inc.(b)		175,510
	909	Humana, Inc.		160,957
	1,094	Illumina, Inc.(b)		147,679
	1,538	Johnson & Johnson		172,379
	1,063	McKesson Corp.		178,393
	2,250	Medtronic PLC		178,087
	3,150	Merck & Co., Inc.		172,746
	3,681	Mylan NV(b)		153,534
	5,587	Pfizer, Inc.		182,751
	457	Regeneron Pharmaceuticals, Inc.(b)		172,156
	1,584	Stryker Corp.		172,672
	1,201	Thermo Fisher Scientific, Inc.		173,244
	1,291	UnitedHealth Group, Inc.		169,999
	2,115	Vertex Pharmaceuticals, Inc.(b)		178,379
				5,476,059
		Industrials—12.1%
	1,001	3M Co.		167,547
	4,068	American Airlines Group, Inc.		141,119
	1,267	Boeing Co. (The)		170,792
	2,209	Caterpillar, Inc.		171,683
	6,495	CSX Corp.		177,119
	1,535	Cummins, Inc.		179,641
	1,752	Danaher Corp.		169,506
	2,076	Deere & Co.		174,612
	3,452	Delta Air Lines, Inc.		143,845
	2,663	Eaton Corp. PLC		168,488
	3,063	Emerson Electric Co.		167,332
	1,026	FedEx Corp.		169,403
	1,272	General Dynamics Corp.		178,741
	5,284	General Electric Co.		162,483
	1,491	Honeywell International, Inc.		170,377
	1,641	Illinois Tool Works, Inc.		171,517
	759	Lockheed Martin Corp.		176,376
	2,035	Norfolk Southern Corp.		183,374
	854	Northrop Grumman Corp.		176,146
	1,360	Raytheon Co.		171,836
	2,112	Union Pacific Corp.		184,230
	1,584	United Parcel Service, Inc., Class B		166,431
	1,682	United Technologies Corp.		175,550
	2,802	Waste Management, Inc.		164,730
				4,082,878
		Information Technology—13.7%
	1,457	Accenture PLC, Class A		164,524
	1,801	Adobe Systems, Inc.(b)		169,690
	221	Alphabet, Inc., Class A(b)		156,442

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	227	Alphabet, Inc., Class C(b)	$	157,313
	1,582	Apple, Inc.		148,297
	1,884	Automatic Data Processing, Inc.		166,621
	1,087	Broadcom Ltd. (Singapore)		158,430
	5,964	Cisco Systems, Inc.		163,950
	2,765	Cognizant Technology Solutions Corp., Class A(b)		161,393
	8,165	Corning, Inc.		152,441
	6,899	eBay, Inc.(b)		168,543
	6,263	EMC Corp.		163,527
	1,464	Facebook, Inc., Class A(b)		172,137
	9,503	Hewlett Packard Enterprise Co.		158,320
	13,786	HP, Inc.		169,154
	5,216	Intel Corp.		157,940
	1,121	International Business Machines Corp.		163,599
	1,824	MasterCard, Inc., Class A		176,910
	16,031	Micron Technology, Inc.(b)		172,333
	3,108	Microsoft Corp.		154,996
	4,096	Oracle Corp.		163,267
	4,295	PayPal Holdings, Inc.(b)		168,278
	3,315	QUALCOMM, Inc.		167,474
	2,313	salesforce.com, inc.(b)		175,325
	2,944	Texas Instruments, Inc.		167,926
	2,246	Visa, Inc., Class A		173,481
	3,257	VMware, Inc., Class A(b)		185,356
	4,723	Yahoo!, Inc.(b)		172,862
				4,630,529
		Materials—5.2%
	1,163	Air Products & Chemicals, Inc.		169,670
	23,772	Chemours Co. (The)		216,801
	3,227	Dow Chemical Co. (The)		169,772
	2,592	E.I. du Pont de Nemours & Co.		170,839
	1,504	Ecolab, Inc.		172,930
	1,955	LyondellBasell Industries NV, Class A		161,620
	1,836	Monsanto Co.		171,996
	1,521	PPG Industries, Inc.		167,903
	1,480	Praxair, Inc.		173,841
	5,996	Southern Copper Corp. (Peru)		177,901
				1,753,273
		Telecommunication Services—1.5%
	4,258	AT&T, Inc.		165,296
	4,493	T-Mobile US, Inc.(b)		176,485
	3,116	Verizon Communications, Inc.		158,729
				500,510
		Utilities—3.4%
	2,560	American Electric Power Co., Inc.		162,560
	2,275	Dominion Resources, Inc.		162,594
	2,094	Duke Energy Corp.		164,965
	4,733	Exelon Corp.		166,081
	1,415	NextEra Energy, Inc.		166,376
	2,844	PG&E Corp.		165,521
	3,289	Southern Co. (The)		164,779
				1,152,876
		Total Common Stocks and Other Equity Interests (Cost $33,810,549)		33,780,975

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

81

PowerShares Russell Top 200 Equal Weight Portfolio (EQWL) (continued)

April 30, 2016

Number of Shares			Value
		Money Market Fund—0.1%
	38,817	Invesco Premier Portfolio—Institutional Class, 0.39%(c) (Cost $38,817)	$	38,817
		Total Investments (Cost $33,849,366)—100.0%		33,819,792
		Other assets less liabilities—(0.0)%		(15,105	)
		Net Assets—100.0%	$	33,804,687

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. The rate shown is the 7-day SEC standardized yield as of April 30, 2016.

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

82

Schedule of Investments^(a)

PowerShares Russell Top 200 Pure Growth Portfolio (PXLG)

April 30, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—31.5%
	7,714	Amazon.com, Inc.(b)	$	5,088,077
	22,591	CBS Corp., Class B		1,263,063
	27,117	Home Depot, Inc. (The)		3,630,695
	16,655	Las Vegas Sands Corp.		751,973
	59,130	Lowe’s Cos., Inc.		4,495,062
	4,687	McDonald’s Corp.		592,859
	15,790	Netflix, Inc.(b)		1,421,574
	54,131	NIKE, Inc., Class B		3,190,481
	4,217	Priceline Group, Inc. (The)(b)		5,666,214
	58,168	Starbucks Corp.		3,270,787
	19,811	Tesla Motors, Inc.(b)		4,769,696
	15,589	Time Warner Cable, Inc.		3,306,583
	56,188	TJX Cos., Inc. (The)		4,260,174
	25,480	VF Corp.		1,606,514
	28,713	Viacom, Inc., Class B		1,174,362
	10,149	Walt Disney Co. (The)		1,047,986
	27,270	Yum! Brands, Inc.		2,169,601
				47,705,701
		Consumer Staples—6.4%
	29,010	Coca-Cola Co. (The)		1,299,648
	15,340	Costco Wholesale Corp.		2,272,314
	12,939	Estee Lauder Cos., Inc. (The), Class A		1,240,462
	449	General Mills, Inc.		27,542
	651	Kraft Heinz Co. (The)		50,824
	86,186	Kroger Co. (The)		3,050,122
	13,466	PepsiCo, Inc.		1,386,459
	6,957	Reynolds American, Inc.		345,067
				9,672,438
		Energy—0.3%
	25,448	Williams Cos., Inc. (The)		493,437
		Financials—4.6%
	52,224	American Tower Corp. REIT		5,477,253
	6,971	Simon Property Group, Inc. REIT		1,402,356
				6,879,609
		Health Care—20.9%
	62,301	AbbVie, Inc.		3,800,361
	12,946	Alexion Pharmaceuticals, Inc.(b)		1,803,119
	11,214	Amgen, Inc.		1,775,176
	7,866	Becton, Dickinson and Co.		1,268,471
	12,157	Biogen, Inc.(b)		3,343,053
	4,483	Bristol-Myers Squibb Co.		323,583
	42,727	Celgene Corp.(b)		4,418,399
	1,117	Cigna Corp.		154,749
	1,116	Eli Lilly & Co.		84,292
	43,581	Gilead Sciences, Inc.		3,844,280
	23,827	Illumina, Inc.(b)		3,216,407
	11,828	McKesson Corp.		1,984,975
	9,685	Regeneron Pharmaceuticals, Inc.(b)		3,648,436
	23,199	Vertex Pharmaceuticals, Inc.(b)		1,956,604
				31,621,905
		Industrials—4.5%
	7,970	3M Co.		1,334,019
	33,678	American Airlines Group, Inc.		1,168,290
	4,145	Boeing Co. (The)		558,746

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrials (continued)
	6,411	Delta Air Lines, Inc.	$	267,146
	1,565	Honeywell International, Inc.		178,833
	3,281	Illinois Tool Works, Inc.		342,930
	21,696	Union Pacific Corp.		1,892,542
	10,635	United Parcel Service, Inc., Class B		1,117,419
				6,859,925
		Information Technology—26.5%
	11,693	Accenture PLC, Class A		1,320,373
	32,867	Adobe Systems, Inc.(b)		3,096,729
	843	Alphabet, Inc., Class C(b)		584,207
	34,547	Apple, Inc.		3,238,436
	25,505	Broadcom Ltd. (Singapore)		3,717,354
	74,956	Cognizant Technology Solutions Corp., Class A(b)		4,375,182
	304	eBay, Inc.(b)		7,427
	47,120	Facebook, Inc., Class A(b)		5,540,369
	53,123	MasterCard, Inc., Class A		5,152,400
	304	PayPal Holdings, Inc.(b)		11,911
	68,261	salesforce.com, inc.(b)		5,174,184
	13,068	Texas Instruments, Inc.		745,399
	63,288	Visa, Inc., Class A		4,888,365
	39,843	VMware, Inc., Class A(b)		2,267,465
				40,119,801
		Materials—5.3%
	30,420	Ecolab, Inc.		3,497,692
	3,282	LyondellBasell Industries NV, Class A		271,323
	18,919	Monsanto Co.		1,772,332
	22,354	PPG Industries, Inc.		2,467,658
				8,009,005
		Total Common Stocks and Other Equity Interests (Cost $152,652,809)		151,361,821
		Money Market Fund—0.0%
	49,276	Invesco Premier Portfolio—Institutional Class, 0.39%(c) (Cost $49,276)		49,276
		Total Investments (Cost $152,702,085)—100.0%		151,411,097
		Other assets less liabilities—0.0%		3,665
		Net Assets—100.0%	$	151,414,762

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. The rate shown is the 7-day SEC standardized yield as of April 30, 2016.

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

83

Schedule of Investments^(a)

PowerShares Russell Top 200 Pure Value Portfolio (PXLV)

April 30, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—3.2%
	23,934	Carnival Corp.	$	1,173,963
	7,221	Ford Motor Co.		97,917
	17,139	General Motors Co.		545,020
	8,797	Thomson Reuters Corp.		361,820
				2,178,720
		Consumer Staples—5.2%
	29,078	Archer-Daniels-Midland Co.		1,161,375
	23,115	Mondelez International, Inc., Class A		993,020
	10,897	Procter & Gamble Co. (The)		873,068
	7,157	Wal-Mart Stores, Inc.		478,589
				3,506,052
		Energy—20.7%
	7,719	Anadarko Petroleum Corp.		407,255
	40,510	Apache Corp.		2,203,744
	16,690	Baker Hughes, Inc.		807,128
	18,896	Chevron Corp.		1,930,793
	33,817	ConocoPhillips		1,616,114
	11,818	Devon Energy Corp.		409,848
	21,616	Exxon Mobil Corp.		1,910,854
	2,795	Halliburton Co.		115,462
	19,527	Kinder Morgan, Inc.		346,800
	28,706	Occidental Petroleum Corp.		2,200,315
	8,927	Phillips 66		732,996
	18,098	Spectra Energy Corp.		565,925
	14,592	Valero Energy Corp.		859,031
				14,106,265
		Financials—36.2%
	18,394	Aflac, Inc.		1,268,634
	18,669	Allstate Corp. (The)		1,214,418
	20,372	American International Group, Inc.		1,137,165
	43,205	Bank of America Corp.		629,065
	44,944	BB&T Corp.		1,590,119
	20,708	Capital One Financial Corp.		1,499,052
	18,966	Chubb Ltd.		2,235,333
	15,476	Citigroup, Inc.		716,229
	10,681	CME Group, Inc., Class A		981,691
	4,133	Discover Financial Services		232,564
	22,052	Equity Residential REIT		1,501,080
	1,838	Franklin Resources, Inc.		68,631
	8,470	Goldman Sachs Group, Inc. (The)		1,390,012
	12,111	JPMorgan Chase & Co.		765,415
	39,860	MetLife, Inc.		1,797,686
	12,049	Morgan Stanley		326,046
	22,158	PNC Financial Services Group, Inc. (The)		1,945,029
	9,580	Prudential Financial, Inc.		743,791
	14,129	State Street Corp.		880,237
	8,611	Travelers Cos., Inc. (The)		946,349
	32,444	U.S. Bancorp		1,385,034
	27,388	Wells Fargo & Co.		1,368,852
				24,622,432
		Health Care—2.1%
	7,085	Abbott Laboratories		275,606
	1,058	Medtronic PLC		83,741
	32,828	Pfizer, Inc.		1,073,804
				1,433,151

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrials—6.6%
	18,850	Eaton Corp. PLC	$	1,192,639
	77,545	General Electric Co.		2,384,509
	6,171	Norfolk Southern Corp.		556,069
	2,525	Raytheon Co.		319,034
				4,452,251
		Information Technology—7.0%
	15,800	Cisco Systems, Inc.		434,342
	38,866	Corning, Inc.		725,628
	52,636	Hewlett Packard Enterprise Co.		876,916
	52,636	HP, Inc.		645,844
	56,875	Yahoo!, Inc.(b)		2,081,625
				4,764,355
		Telecommunication Services—2.9%
	43,294	AT&T, Inc.		1,680,673
	7,251	T-Mobile US, Inc.(b)		284,819
				1,965,492
		Utilities—16.1%
	34,115	American Electric Power Co., Inc.		2,166,303
	26,996	Duke Energy Corp.		2,126,745
	41,826	Exelon Corp.		1,467,674
	10,887	NextEra Energy, Inc.		1,280,093
	33,041	PG&E Corp.		1,922,986
	40,215	Southern Co. (The)		2,014,772
				10,978,573
		Total Common Stocks and Other Equity Interests (Cost $66,560,970)		68,007,291
		Money Market Fund—0.0%
	17,752	Invesco Premier Portfolio—Institutional Class, 0.39%(c) (Cost $17,752)		17,752
		Total Investments (Cost $66,578,722)-100.0%		68,025,043
		Other assets less liabilities—0.0%		3,486
		Net Assets—100.0%	$	68,028,529

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. The rate shown is the 7-day SEC standardized yield as of April 30, 2016.

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

84

Schedule of Investments^(a)

PowerShares Zacks Micro Cap Portfolio (PZI)

April 30, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—10.4%
	1,590	Bassett Furniture Industries, Inc.	$	46,921
	4,561	Big 5 Sporting Goods Corp.		55,142
	11,163	Career Education Corp.(b)		59,610
	542	Cavco Industries, Inc.(b)		47,528
	7,983	Century Casinos, Inc.(b)		47,659
	2,969	Century Communities, Inc.(b)		51,186
	4,905	del Taco Restaurants, Inc.(b)		44,390
	2,564	Delta Apparel, Inc.(b)		51,921
	4,430	Eldorado Resorts, Inc.(b)		58,077
	4,791	Entercom Communications Corp., Class A(b)		54,330
	4,403	Eros International PLC, Class A(b)		58,912
	1,593	Ethan Allen Interiors, Inc.		54,226
	1,123	Flexsteel Industries, Inc.		45,919
	3,398	Fred’s, Inc., Class A		49,849
	1,929	FTD Cos., Inc.(b)		53,645
	4,675	Golden Entertainment, Inc.(b)		56,568
	6,678	Green Brick Partners, Inc.(b)		49,217
	1,543	Hooker Furniture Corp.		38,266
	6,812	JAKKS Pacific, Inc.(b)(c)		51,090
	5,123	K12, Inc.(b)		62,962
	4,001	Lakeland Industries, Inc.(b)		34,769
	2,092	LGI Homes, Inc.(b)		58,597
	10,115	Luby’s, Inc.(b)		50,878
	2,716	M/I Homes, Inc.(b)		54,592
	2,674	Marcus Corp. (The)		51,742
	1,841	Movado Group, Inc.		51,935
	854	NACCO Industries, Inc., Class A		50,830
	4,134	New Home Co., Inc. (The)(b)		46,011
	2,752	Perry Ellis International, Inc.(b)		52,426
	5,540	RCI Hospitality Holdings, Inc.		56,785
	5,821	Red Lion Hotels Corp.(b)		45,986
	3,335	Regis Corp.(b)		45,589
	9,419	Ruby Tuesday, Inc.(b)		41,444
	7,894	Sears Hometown and Outlet Stores, Inc.(b)		53,442
	7,680	Sequential Brands Group, Inc.(b)		42,624
	3,600	SodaStream International Ltd. (Israel)(b)		49,392
	2,295	Superior Industries International, Inc.		59,945
	4,522	Townsquare Media, Inc., Class A(b)		48,114
	13,503	Trans World Entertainment Corp.(b)		52,392
	2,727	WCI Communities, Inc.(b)		43,577
	5,576	West Marine, Inc.(b)		55,872
	3,496	William Lyon Homes, Class A(b)		49,294
	5,625	ZAGG, Inc.(b)		45,056
				2,178,710
		Consumer Staples—2.2%
	2,798	Alliance One International, Inc.(b)		71,377
	5,187	Amira Nature Foods Ltd. (United Arab Emirates)(b)		37,606
	3,101	Central Garden & Pet Co.(b)		50,453
	3,011	Central Garden & Pet Co., Class A(b)		49,049
	711	John B. Sanfilippo & Son, Inc.		39,340
	2,092	MGP Ingredients, Inc.		55,271
	2,991	Omega Protein Corp.(b)		55,603
	1,784	Orchids Paper Products Co.		54,715
	1,414	Seneca Foods Corp., Class A(b)		46,082
				459,496

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Energy—8.8%
	5,997	Ardmore Shipping Corp. (Ireland)	$	56,072
	8,146	Bill Barrett Corp.(b)		64,842
	5,726	Callon Petroleum Co.(b)		60,180
	3,569	CARBO Ceramics, Inc.		53,000
	4,051	Cone Midstream Partners LP		57,362
	11,088	Dawson Geophysical Co.(b)		56,992
	8,797	DHT Holdings, Inc.		50,495
	5,390	Dorian LPG Ltd.(b)		54,762
	5,202	GasLog Ltd. (Monaco)		66,638
	3,047	GasLog Partners LP (Monaco)		54,572
	3,978	Geospace Technologies Corp.(b)		65,080
	20,516	Gran Tierra Energy, Inc. (Colombia)(b)		60,727
	8,214	Gulfmark Offshore, Inc., Class A(b)(c)		55,691
	5,103	Hornbeck Offshore Services, Inc.(b)		59,909
	3,091	KNOT Offshore Partners LP (United Kingdom)		59,347
	2,863	Matrix Service Co.(b)		53,939
	12,390	McDermott International, Inc.(b)		56,251
	2,342	Natural Gas Services Group, Inc.(b)		53,842
	5,089	Navios Maritime Midstream Partners LP (Monaco)		63,053
	23,905	Parker Drilling Co.(b)		73,149
	5,368	Renewable Energy Group, Inc.(b)		52,177
	913	REX American Resources Corp.(b)		49,640
	3,403	Rice Midstream Partners LP		56,728
	932	SEACOR Holdings, Inc.(b)		54,774
	13,809	Teekay Tankers Ltd., Class A (Bermuda)		54,407
	5,886	Tesco Corp.		55,681
	7,979	TETRA Technologies, Inc.(b)		57,449
	1,383	TransMontaigne Partners LP		56,565
	5,719	Transocean Partners LLC		67,599
	8,199	Tsakos Energy Navigation Ltd. (Greece)		52,146
	4,312	USA Compression Partners LP		58,083
	2,654	VTTI Energy Partners LP (United Kingdom)		53,080
				1,844,232
		Financials—48.8%
	3,874	1st Constitution Bancorp(b)		48,580
	1,591	1st Source Corp.		54,794
	3,876	AG Mortgage Investment Trust, Inc. REIT		51,900
	1,276	Agree Realty Corp. REIT		49,483
	4,358	Alcentra Capital Corp.		51,294
	4,224	Altisource Residential Corp. REIT		49,083
	3,105	Ambac Financial Group, Inc.(b)		50,394
	3,452	American Capital Mortgage Investment Corp. REIT		51,193
	2,001	American National Bankshares, Inc.		53,487
	1,715	Ameris Bancorp		53,851
	932	AMERISAFE, Inc.		50,216
	10,874	Anworth Mortgage Asset Corp. REIT		51,325
	7,486	Arbor Realty Trust, Inc. REIT		50,006
	4,629	Ares Commercial Real Estate Corp. REIT		55,548
	4,504	Armada Hoffler Properties, Inc. REIT		52,697
	2,354	ARMOUR Residential REIT, Inc. REIT		50,093
	2,025	ASB Bancorp, Inc., Class B(b)		51,617
	7,943	Ashford Hospitality Trust, Inc. REIT		44,401
	8,130	Atlantic Coast Financial Corp.(b)		52,195
	2,114	Baldwin & Lyons, Inc., Class A		49,785

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

85

PowerShares Zacks Micro Cap Portfolio (PZI) (continued)

April 30, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	2,060	Baldwin & Lyons, Inc., Class B	$	50,346
	2,803	Banc of California, Inc.		57,041
	2,091	Banco Latinoamericano de Comercio Exterior SA, Class E (Panama)		54,073
	7,730	Bank of Commerce Holdings		48,544
	1,884	Berkshire Hills Bancorp, Inc.		51,132
	5,387	BlackRock Capital Investment Corp.		45,305
	2,827	Blue Capital Reinsurance Holdings Ltd. (Bermuda)		49,331
	3,708	Blue Hills Bancorp, Inc.		54,063
	4,656	Bluerock Residential Growth REIT, Inc., Class A REIT		50,937
	2,399	BNC Bancorp		53,642
	1,662	Bridge Bancorp, Inc.		50,591
	4,604	Brookline Bancorp, Inc.		52,393
	7,063	BRT Realty Trust REIT(b)		50,147
	1,969	Bryn Mawr Bank Corp.		55,959
	1,283	C&F Financial Corp.		50,024
	3,738	California First National Bancorp		55,210
	1,169	Camden National Corp.		50,863
	3,769	Cape Bancorp, Inc.		54,990
	1,642	Capital Bank Financial Corp., Class A		49,638
	5,123	Capstead Mortgage Corp. REIT		49,796
	2,491	Cardinal Financial Corp.		55,126
	2,731	Carolina Financial Corp.		51,343
	8,874	Cascade Bancorp(b)		53,688
	1,310	Cash America International, Inc.		48,418
	4,680	CatchMark Timber Trust, Inc., Class A REIT		49,655
	7,008	Cedar Realty Trust, Inc. REIT		48,495
	3,403	Centerstate Banks, Inc.		55,435
	2,328	Central Pacific Financial Corp.		54,336
	4,552	Central Valley Community Bancorp		55,443
	2,859	Centrue Financial Corp.(b)		47,660
	3,754	Charter Financial Corp.		47,038
	2,784	Chicopee Bancorp, Inc.		50,613
	1,061	City Holding Co.		52,116
	2,320	Community Financial Corp. (The)		51,040
	1,435	Community Trust Bancorp, Inc.		51,473
	3,099	ConnectOne Bancorp, Inc.		53,334
	13,300	Cowen Group, Inc., Class A(b)		46,350
	2,146	Customers Bancorp, Inc.(b)		55,753
	2,875	Dime Community Bancshares, Inc.		52,066
	7,621	Dynex Capital, Inc. REIT		49,536
	2,737	Easterly Government Properties, Inc. REIT		50,498
	7,336	Eastern Virginia Bankshares, Inc.		51,499
	2,908	Ellington Financial LLC		49,465
	1,976	EMC Insurance Group, Inc.		52,285
	1,800	Employers Holdings, Inc.		53,460
	2,825	Entegra Financial Corp.(b)		50,426
	1,875	Enterprise Financial Services Corp.		51,319
	3,757	ESSA Bancorp, Inc.		50,907
	1,918	Farmers Capital Bank Corp.(b)		53,915
	1,342	Federal Agricultural Mortgage Corp., Class C		54,593
	3,159	Fidelity Southern Corp.		51,049
	9,778	Fifth Street Finance Corp.		52,997
	6,389	Fifth Street Senior Floating Rate Corp.		50,409

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	1,742	Financial Institutions, Inc.	$	48,776
	17,354	First BanCorp(b)		67,681
	2,473	First Busey Corp.		50,548
	5,719	First Commonwealth Financial Corp.		52,500
	2,553	First Community Bancshares, Inc.		53,128
	3,402	First Community Corp./SC		49,431
	1,319	First Defiance Financial Corp.		52,206
	1,481	First Financial Corp.		52,472
	3,846	First Financial Northwest, Inc.		52,459
	2,169	First Internet Bancorp		53,791
	2,149	First Merchants Corp.		55,122
	2,038	First MID-Illinois Bancshares, Inc.		50,726
	5,594	First Potomac Realty Trust REIT		47,046
	2,343	Flushing Financial Corp.		46,743
	4,671	FNFV Group(b)		50,307
	3,886	Forestar Group, Inc.(b)		52,461
	1,875	Franklin Financial Network, Inc.(b)		56,887
	7,725	Gain Capital Holdings, Inc.		52,916
	1,524	German American Bancorp, Inc.		49,119
	2,554	Getty Realty Corp. REIT		50,263
	6,802	Gladstone Capital Corp.		51,967
	7,220	Gladstone Investment Corp.		50,179
	1,629	Global Indemnity PLC, Class A(b)		51,232
	2,585	Goldman Sachs BDC, Inc.		50,795
	2,929	Golub Capital BDC, Inc.		51,404
	1,363	Great Southern Bancorp, Inc.		51,603
	4,407	Hallmark Financial Services, Inc.(b)		49,755
	2,302	Hanmi Financial Corp.		53,222
	2,636	Hannon Armstrong Sustainable Infrastructure Capital, Inc. REIT		51,138
	1,593	Heartland Financial USA, Inc.		53,381
	4,220	Hercules Capital, Inc.		51,779
	2,884	Heritage Financial Corp.		53,210
	1,890	Home Bancorp, Inc.		52,769
	2,358	HomeStreet, Inc.(b)		50,815
	2,766	HomeTrust Bancshares, Inc.(b)		51,309
	3,085	Independence Holding Co.		47,416
	7,116	Independence Realty Trust, Inc. REIT		51,022
	3,483	Independent Bank Corp./MI		52,767
	1,848	Independent Bank Group, Inc.		67,637
	630	Infinity Property & Casualty Corp.		50,501
	1,896	INTL FCStone, Inc.(b)		51,761
	555	Investors Title Co.		52,853
	5,247	iStar, Inc. REIT(b)		51,421
	3,511	Lake Sunapee Bank Group		49,997
	1,107	Lakeland Financial Corp.		52,350
	3,064	Malvern Bancorp, Inc.(b)		48,289
	6,296	MBT Financial Corp.		55,405
	5,491	Medallion Financial Corp.		42,281
	7,679	Medley Capital Corp.		52,217
	2,259	Mercantile Bank Corp.		54,487
	3,640	Meridian Bancorp, Inc.		53,217
	1,112	Meta Financial Group, Inc.		55,177
	2,281	Middleburg Financial Corp.		61,587
	3,116	MMA Capital Management LLC(b)		50,012
	8,252	Nam Tai Property, Inc. (China)		50,337

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

86

PowerShares Zacks Micro Cap Portfolio (PZI) (continued)

April 30, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	2,485	National Bank Holdings Corp., Class A	$	49,675
	220	National Western Life Group, Inc., Class A		47,674
	4,008	New Mountain Finance Corp.		50,180
	10,691	New York Mortgage Trust, Inc. REIT		55,593
	10,034	NMI Holdings, Inc., Class A(b)		63,114
	4,627	Northeast Bancorp		52,054
	3,083	Northfield Bancorp, Inc.		48,896
	2,893	Ocean Shore Holding Co.		51,669
	2,774	OceanFirst Financial Corp.		54,038
	3,791	OFS Capital Corp.		50,041
	2,639	Old Point Financial Corp.		50,933
	4,887	Orchid Island Capital, Inc. REIT		47,306
	2,985	Oritani Financial Corp.		51,730
	3,072	Owens Realty Mortgage, Inc. REIT		50,504
	2,371	Pacific Premier Bancorp, Inc.(b)		55,149
	2,999	Peapack-Gladstone Financial Corp.		57,401
	4,285	Pennantpark Floating Rate Capital Ltd.		50,820
	8,361	PennantPark Investment Corp.		55,099
	2,640	Peoples Bancorp of North Carolina, Inc.		50,978
	2,511	Peoples Bancorp, Inc.		53,961
	1,022	Piper Jaffray Cos.(b)		42,628
	3,869	Preferred Apartment Communities, Inc., Class A REIT		47,743
	1,675	Preferred Bank		53,198
	3,216	Premier Financial Bancorp, Inc.		51,327
	2,972	Provident Financial Holdings, Inc.		51,416
	2,124	QCR Holdings, Inc.		54,735
	2,961	Regional Management Corp.(b)		48,916
	1,961	Republic Bancorp, Inc., Class A		53,555
	4,504	Resource Capital Corp. REIT(c)		53,508
	2,792	Rexford Industrial Realty, Inc. REIT		52,406
	859	Safety Insurance Group, Inc.		48,628
	1,594	Salisbury Bancorp, Inc.		51,008
	1,822	Sandy Spring Bancorp, Inc.		52,091
	3,109	Seacoast Banking Corp. of Florida(b)		50,428
	6,333	Select Bancorp, Inc.(b)		51,867
	4,098	Shore Bancshares, Inc.		48,111
	3,414	Silver Bay Realty Trust Corp. REIT		49,844
	2,652	Smartfinancial, Inc.(b)		44,315
	2,931	Solar Capital Ltd.		51,674
	3,366	Southwest Bancorp, Inc.		54,024
	2,565	State Bank Financial Corp.		53,557
	4,022	State National Cos., Inc.		45,368
	1,396	Stewart Information Services Corp.		48,609
	2,064	Stratus Properties, Inc.(b)		49,330
	3,171	Summit Financial Group, Inc.		59,234
	4,233	Summit Hotel Properties, Inc. REIT		48,256
	3,398	TCP Capital Corp.		50,222
	2,161	Terreno Realty Corp. REIT		49,206
	3,885	Timberland Bancorp, Inc.		53,691
	8,624	Tiptree Financial, Inc., Class A		47,691
	768	Tompkins Financial Corp.		50,181
	3,143	TPG Specialty Lending, Inc.		51,639
	4,980	Transcontinental Realty Investors, Inc.(b)		43,675
	2,463	Triangle Capital Corp.		52,339
	2,002	TriCo Bancshares		53,894

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	4,022	TriState Capital Holdings, Inc.(b)	$	53,734
	3,200	Triumph Bancorp, Inc.(b)		50,848
	8,361	TrustCo Bank Corp. NY		53,594
	4,025	United Financial Bancorp, Inc.		52,244
	4,457	Unity Bancorp, Inc.		52,414
	2,598	Univest Corp. of Pennsylvania		51,285
	2,089	Walker & Dunlop, Inc.(b)		46,062
	2,246	WashingtonFirst Bankshares, Inc.		49,861
	3,705	Waterstone Financial, Inc.		51,944
	5,042	Western Asset Mortgage Capital Corp. REIT		50,269
	6,010	Westfield Financial, Inc.		46,037
	3,859	Winthrop Realty Trust REIT		49,086
	1,557	WSFS Financial Corp.		53,156
	6,493	Xenith Bankshares, Inc.(b)		50,386
	2,142	Yadkin Financial Corp.		53,593
	3,396	ZAIS Financial Corp. REIT		49,412
				10,256,635
		Health Care—3.3%
	5,583	Aquinox Pharmaceuticals, Inc. (Canada)(b)		45,446
	1,147	Cynosure, Inc., Class A(b)		56,134
	6,638	Inotek Pharmaceuticals Corp.(b)		65,052
	3,846	Invacare Corp.		43,229
	3,163	LeMaitre Vascular, Inc.		52,442
	1,424	LHC Group, Inc.(b)		57,444
	1,852	Loxo Oncology, Inc.(b)		42,689
	2,611	Luminex Corp.(b)		52,481
	15,355	Ohr Pharmaceutical, Inc.(b)		50,211
	4,986	Symmetry Surgical, Inc.(b)		52,104
	11,582	TransEnterix, Inc.(b)		17,373
	1,974	Triple-S Management Corp., Class B(b)		51,403
	4,580	USMD Holdings, Inc.(b)		53,036
	5,320	Zogenix, Inc.(b)		54,530
				693,574
		Industrials—10.7%
	2,177	AAR Corp.		52,335
	5,643	ACCO Brands Corp.(b)		53,834
	2,403	Aegion Corp.(b)		51,016
	1,790	Aerovironment, Inc.(b)		51,695
	3,295	Air Transport Services Group, Inc.(b)		46,427
	6,468	American Superconductor Corp.(b)		64,421
	1,086	Astec Industries, Inc.		52,562
	5,022	CBIZ, Inc.(b)		51,124
	2,579	CRA International, Inc.(b)		55,964
	18,980	Diana Shipping, Inc. (Greece)(b)(c)		65,671
	1,302	Encore Wire Corp.		49,802
	6,819	Energy Focus, Inc.(b)(c)		53,188
	2,592	Ennis, Inc.		50,648
	1,300	ESCO Technologies, Inc.		50,024
	3,359	Gencor Industries, Inc.(b)		48,470
	1,771	Gibraltar Industries, Inc.(b)		46,843
	2,139	Heidrick & Struggles International, Inc.		42,202
	1,473	ICF International, Inc.(b)		57,992
	6,172	InnerWorkings, Inc.(b)		50,425
	1,659	Insteel Industries, Inc.		48,094
	3,454	Integrated Electrical Services, Inc.(b)		41,690

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

87

PowerShares Zacks Micro Cap Portfolio (PZI) (continued)

April 30, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrials (continued)
	2,651	Kelly Services, Inc., Class A	$	49,759
	2,895	Kelly Services, Inc., Class B		53,673
	7,631	KEYW Holding Corp. (The)(b)(c)		52,578
	10,238	Kratos Defense & Security Solutions, Inc.(b)		54,364
	7,048	Layne Christensen Co.(b)		62,657
	4,312	LSI Industries, Inc.		54,547
	2,498	Mercury Systems, Inc.(b)		52,508
	2,045	Mistras Group, Inc.(b)		49,837
	606	National Presto Industries, Inc.		52,837
	3,204	Navigant Consulting, Inc.(b)		51,136
	1,700	Powell Industries, Inc.		52,904
	2,919	Quanex Building Products Corp.		54,994
	4,500	RPX Corp.(b)		49,860
	2,778	Rush Enterprises, Inc., Class A(b)		54,699
	2,535	SkyWest, Inc.		59,573
	2,106	SP Plus Corp.(b)		46,922
	9,841	Sterling Construction Co., Inc.(b)		51,567
	4,385	Titan Machinery, Inc.(b)		57,005
	3,260	Tutor Perini Corp.(b)		51,573
	1,361	Veritiv Corp.(b)		55,828
	1,685	Viad Corp.		50,129
	2,347	Willis Lease Finance Corp.(b)		56,750
				2,260,127
		Information Technology—7.1%
	4,278	Alpha & Omega Semiconductor Ltd.(b)		55,571
	3,398	Applied Optoelectronics, Inc.(b)		38,058
	2,919	Autobytel, Inc.(b)		48,455
	18,099	Axcelis Technologies, Inc.(b)		51,763
	4,874	Brooks Automation, Inc.		46,108
	2,821	ChipMOS TECHNOLOGIES Bermuda Ltd. (Taiwan)		47,449
	2,169	Comtech Telecommunications Corp.		52,490
	6,072	CUI Global, Inc.(b)		50,701
	5,374	Digi International, Inc.(b)		56,803
	6,864	Electro Scientific Industries, Inc.(b)		48,391
	9,823	EMCORE Corp.(b)		55,991
	1,567	Fabrinet (Thailand)(b)		50,097
	6,971	FormFactor, Inc.(b)		53,677
	18,769	Gigpeak, Inc.(b)		43,169
	1,768	Insight Enterprises, Inc.(b)		43,687
	4,377	IXYS Corp.		47,272
	11,387	Marchex, Inc., Class B		48,395
	17,843	MeetMe, Inc.(b)		61,023
	3,608	NeoPhotonics Corp.(b)		43,260
	9,383	Oclaro, Inc.(b)(c)		47,384
	2,131	Orbotech Ltd. (Israel)(b)		51,314
	7,644	Par Technology Corp.(b)		48,845
	4,869	Photronics, Inc.(b)		51,514
	3,711	Rudolph Technologies, Inc.(b)		51,472
	1,256	ScanSource, Inc.(b)		51,094
	11,894	ServiceSource International, Inc.(b)		47,933
	6,731	Sonus Networks, Inc.(b)		55,598
	7,621	TTM Technologies, Inc.(b)		49,689
	2,320	Ultratech, Inc.(b)		50,321
	11,624	USA Technologies, Inc.(b)		50,913
				1,498,437

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Materials—6.0%
	3,211	American Vanguard Corp.(b)	$	53,142
	23,069	Asanko Gold, Inc. (Canada)(b)		74,974
	1,958	Ciner Resources LP		57,957
	9,017	Coeur Mining, Inc.(b)		73,038
	7,819	First Majestic Silver Corp. (Canada)(b)		83,194
	12,995	Fortuna Silver Mines, Inc. (Canada)(b)		83,428
	4,299	FutureFuel Corp.		48,321
	1,390	Haynes International, Inc.		52,167
	22,931	IAMGOLD Corp. (Canada)(b)		77,965
	2,928	Kraton Performance Polymers, Inc.(b)		66,495
	15,642	Nevsun Resources Ltd. (Canada)		58,501
	2,929	Olympic Steel, Inc.		66,254
	9,171	Pretium Resources, Inc. (Canada)(b)		75,477
	8,984	Richmont Mines, Inc. (Canada)(b)		69,896
	15,404	Sandstorm Gold Ltd. (Canada)(b)		65,775
	2,747	Schnitzer Steel Industries, Inc., Class A		56,643
	4,485	Seabridge Gold, Inc. (Canada)(b)		64,270
	9,131	Silver Standard Resources, Inc. (Canada)(b)		85,740
	2,573	Westlake Chemical Partners LP		49,247
				1,262,484
		Pharmaceuticals—0.0%
	27,615	Chelsea Therapeutics International Ltd.(b)		2,209
		Telecommunication Services—1.0%
	3,720	Internet Gold-Golden Lines Ltd. (Israel)(b)		51,224
	6,438	Iridium Communications, Inc.(b)		51,955
	5,003	ORBCOMM, Inc.(b)		49,580
	2,801	Spok Holdings, Inc.		47,589
				200,348
		Utilities—1.7%
	804	Chesapeake Utilities Corp.		47,854
	1,122	Connecticut Water Service, Inc.		52,757
	4,165	Consolidated Water Co. Ltd. (Cayman Islands)		57,852
	5,719	Ellomay Capital Ltd. (Israel)		44,666
	1,642	Middlesex Water Co.		60,064
	1,393	SJW Corp.		47,933
	1,193	Unitil Corp.		47,147
				358,273
		Total Common Stocks and Other Equity Interests (Cost $19,473,906)		21,014,525
		Money Market Fund—0.3%
	63,831	Invesco Premier Portfolio—Institutional Class, 0.39% (d) (Cost $63,831)		63,831
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $19,537,737)—100.3%		21,078,356

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

88

PowerShares Zacks Micro Cap Portfolio (PZI) (continued)

April 30, 2016

Number of Shares			Value
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—1.1%
	241,545	Invesco Liquid Assets Portfolio—Institutional Class, 0.44%(d)(e) (Cost $241,545)	$	241,545
		Total Investments (Cost $19,779,282)—101.4%		21,319,901
		Other assets less liabilities—(1.4)%		(295,616	)
		Net Assets—100.0%	$	21,024,285

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, 2016.

^(d)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of April 30, 2016.

^(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 2H.

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

89

Statements of Assets and Liabilities

April 30, 2016

	PowerShares Dynamic Large Cap Growth Portfolio (PWB)			PowerShares Dynamic Large Cap Value Portfolio (PWV)			PowerShares Russell 2000 Equal Weight Portfolio (EQWS)			PowerShares Russell 2000 Pure Growth Portfolio (PXSG)
Assets:
Unaffiliated investments, at value(a)	$	443,661,082		$	975,404,672		$	13,071,766		$	26,711,853
Affiliated investments, at value		52,887			—			22,349			2,116,460
Total investments, at value		443,713,969			975,404,672			13,094,115			28,828,313
Receivables:
Dividends		330,032			1,383,648			5,196			1,986
Foreign tax reclaims		9,459			—			—			—
Investments sold		—			—			17,124			212,543
Expenses absorbed		—			—			29,455			1,867
Securities lending		—			—			—			8,794
Other assets		3,103			5,847			3,797			3,334
Total Assets		444,056,563			976,794,167			13,149,687			29,056,837
Liabilities:
Due to custodian		253			874,580			—			—
Payables:
Investments purchased		—			—			14,602			200,439
Expenses recaptured		—			—			—			—
Collateral upon return of securities loaned		—			—			—			2,079,497
Accrued advisory fees		183,376			406,106			—			—
Accrued trustees’ and officer’s fees		33,229			44,684			14,915			16,284
Accrued expenses		87,837			169,975			44,863			41,382
Total Liabilities		304,695			1,495,345			74,380			2,337,602
Net Assets	$	443,751,868		$	975,298,822		$	13,075,307		$	26,719,235
Net Assets Consist of:
Shares of beneficial interest	$	663,456,072		$	1,163,466,717		$	23,939,483		$	62,629,078
Undistributed net investment income		539,344			3,485,993			14,585			14,997
Undistributed net realized gain (loss)		(256,277,108	)		(240,085,340	)		(10,369,794	)		(32,936,969	)
Net unrealized appreciation (depreciation)		36,033,560			48,431,452			(508,967	)		(2,987,871	)
Net Assets	$	443,751,868		$	975,298,822		$	13,075,307		$	26,719,235
Shares outstanding (unlimited amount authorized, $0.01 par value)		14,400,000			32,500,000			400,000			1,150,000
Net asset value	$	30.82		$	30.01		$	32.69		$	23.23
Market price	$	30.81		$	30.00		$	32.71		$	23.26
Unaffiliated investments, at cost	$	407,627,522		$	926,973,220		$	13,580,107		$	29,699,724
Affiliated investments, at cost	$	52,887		$	—		$	22,975		$	2,116,460
Total investments, at cost	$	407,680,409		$	926,973,220		$	13,603,082		$	31,816,184
(a) Includes securities on loan with an aggregate value of	$	—		$	—		$	—		$	1,992,242

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

90

PowerShares Russell 2000 Pure Value Portfolio (PXSV)			PowerShares Russell Midcap Equal Weight Portfolio (EQWM)			PowerShares Russell Midcap Pure Growth Portfolio (PXMG)			PowerShares Russell Midcap Pure Value Portfolio (PXMV)			PowerShares Russell Top 200 Equal Weight Portfolio (EQWL)			PowerShares Russell Top 200 Pure Growth Portfolio (PXLG)			PowerShares Russell Top 200 Pure Value Portfolio (PXLV)			PowerShares Zacks Micro Cap Portfolio (PZI)
$	59,362,780		$	23,344,725		$	67,082,374		$	50,365,035		$	33,780,975		$	151,361,821		$	68,007,291		$	21,014,525
	3,302,156			137,439			197,678			2,405,652			38,817			49,276			17,752			305,376
	62,664,936			23,482,164			67,280,052			52,770,687			33,819,792			151,411,097			68,025,043			21,319,901
	48,485			11,339			8,022			31,440			33,410			102,156			64,595			8,589
	349			—			—			—			477			—			—			327
	4,672			39,777			—			125,404			—			—			—			5,023
	—			23,060			—			—			3,062			—			—			—
	8,252			2,385			2,091			3,620			—			—			—			1,518
	3,334			2,559			3,717			3,333			3,334			3,370			3,520			3,256
	62,730,028			23,561,284			67,293,882			52,934,484			33,860,075			151,516,623			68,093,158			21,338,614
	—			—			—			—			—			—			—			—
	—			46,178			—			140,980			—			—			—			—
	—			—			—			—			—			284			—			—
	2,983,531			97,802			196,587			2,364,817			—			—			—			241,545
	9,984			—			12,446			6,730			—			36,995			11,325			3,344
	18,190			15,412			23,268			16,923			16,020			12,419			10,554			17,637
	50,708			44,558			46,587			41,438			39,368			52,163			42,750			51,803
	3,062,413			203,950			278,888			2,570,888			55,388			101,861			64,629			314,329
$	59,667,615		$	23,357,334		$	67,014,994		$	50,363,596		$	33,804,687		$	151,414,762		$	68,028,529		$	21,024,285
$	103,806,511		$	36,353,631		$	236,073,668		$	89,520,185		$	44,895,674		$	154,945,581		$	67,712,364		$	89,873,161
	322,551			48,478			16,867			193,728			81,363			302,414			173,391			93,697
	(39,239,380	)		(11,228,582	)		(162,099,649	)		(37,943,885	)		(11,142,776	)		(2,542,245	)		(1,303,547	)		(70,483,192	)
	(5,222,067	)		(1,816,193	)		(6,975,892	)		(1,406,432	)		(29,574	)		(1,290,988	)		1,446,321			1,540,619
$	59,667,615		$	23,357,334		$	67,014,994		$	50,363,596		$	33,804,687		$	151,414,762		$	68,028,529		$	21,024,285
	2,500,000			600,000			2,300,000			1,850,000			850,000			4,600,000			2,300,000			1,350,000
$	23.87		$	38.93		$	29.14		$	27.22		$	39.77		$	32.92		$	29.58		$	15.57
$	23.88		$	38.89		$	29.12		$	27.21		$	39.73		$	32.92		$	29.55		$	15.57
$	64,526,588		$	25,157,026		$	74,058,266		$	51,771,467		$	33,810,549		$	152,652,809		$	66,560,970		$	19,473,906
$	3,360,417		$	141,331		$	197,678		$	2,405,652		$	38,817		$	49,276		$	17,752		$	305,376
$	67,887,005		$	25,298,357		$	74,255,944		$	54,177,119		$	33,849,366		$	152,702,085		$	66,578,722		$	19,779,282
$	2,728,585		$	98,171		$	190,774		$	2,291,806		$	—		$	—		$	—		$	227,141

91

Statements of Operations

For the year ended April 30, 2016

	PowerShares Dynamic Large Cap Growth Portfolio (PWB)			PowerShares Dynamic Large Cap Value Portfolio (PWV)			PowerShares Russell 2000 Equal Weight Portfolio (EQWS)			PowerShares Russell 2000 Pure Growth Portfolio (PXSG)
Investment Income:
Unaffiliated dividend income	$	4,552,495		$	29,873,468		$	162,069		$	138,962
Affiliated dividend income		309			1,026			480			112
Securities lending income		—			—			—			59,242
Foreign withholding tax		—			—			(199	)		—
Total Income		4,552,804			29,874,494			162,350			198,316
Expenses:
Advisory fees		1,883,369			4,962,619			34,203			87,631
Sub-licensing fees		113,004			297,759			2,776			6,907
Accounting & administration fees		70,668			192,360			35,527			35,805
Professional fees		30,068			38,768			32,381			32,329
Trustees’ and officer’s fees		14,140			25,958			7,893			8,185
Custodian & transfer agent fees		10,437			33,879			31,161			16,261
Recapture (Note 3)		—			—			—			—
Other expenses		36,483			86,205			13,728			16,424
Total Expenses		2,158,169			5,637,548			157,669			203,542
Less: Waivers		(298	)		(1,030	)		(122,434	)		(85,794	)
Net Expenses		2,157,871			5,636,518			35,235			117,748
Net Investment Income		2,394,933			24,237,976			127,115			80,568
Realized and Unrealized Gain (Loss):
Net realized gain (loss) from:
Investment securities		(16,944,066	)		(78,477,797	)		(1,630,462	)		(2,673,622	)
In-kind redemptions		23,712,886			54,956,382			3,106,590			7,986,718
Foreign currencies		—			—			—			—
Net realized gain (loss)		6,768,820			(23,521,415	)		1,476,128			5,313,096
Change in net unrealized appreciation (depreciation) on:
Investment securities		1,296,040			(24,474,487	)		(2,766,711	)		(8,134,006	)
Foreign currencies		—			—			—			—
Net change in unrealized appreciation (depreciation)		1,296,040			(24,474,487	)		(2,766,711	)		(8,134,006	)
Net realized and unrealized gain (loss)		8,064,860			(47,995,902	)		(1,290,583	)		(2,820,910	)
Net increase (decrease) in net assets resulting from operations	$	10,459,793		$	(23,757,926	)	$	(1,163,468	)	$	(2,740,342	)

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

92

PowerShares Russell 2000 Pure Value Portfolio  (PXSV)			PowerShares Russell Midcap Equal Weight Portfolio  (EQWM)			PowerShares Russell Midcap Pure Growth Portfolio  (PXMG)			PowerShares Russell Midcap Pure Value Portfolio  (PXMV)			PowerShares Russell Top 200 Equal Weight Portfolio  (EQWL)			PowerShares Russell Top 200 Pure Growth Portfolio  (PXLG)			PowerShares Russell Top 200 Pure Value Portfolio  (PXLV)			PowerShares Zacks Micro Cap Portfolio  (PZI)
$	1,751,854		$	487,760		$	481,372		$	1,297,372		$	832,341		$	1,713,277		$	1,363,369		$	493,970
	33,616			3,091			177			107			103			173			86			130
	192,028			9,895			17,813			35,856			—			—			—			27,847
	(1,200	)		(685	)		(1,533	)		(218	)		(716	)		—			(1,555	)		(626	)
	1,976,298			500,061			497,829			1,333,117			831,728			1,713,450			1,361,900			521,321
	187,484			71,813			227,254			128,367			93,343			399,577			124,648			126,211
	14,862			5,661			18,028			10,231			7,546			31,603			10,998			25,241
	35,995			35,772			35,641			35,879			35,631			35,548			35,626			35,643
	31,519			31,471			31,641			31,243			31,854			32,599			31,670			29,167
	8,875			8,175			9,152			8,478			8,326			10,116			8,330			8,121
	20,015			26,491			6,270			6,866			7,920			7,342			8,941			13,098
	—			—			—			—			—			284			—			—
	22,349			15,869			20,615			18,897			15,657			20,293			15,086			15,317
	321,099			195,252			348,601			239,961			200,277			537,362			235,299			252,798
	(69,112	)		(121,212	)		(43,170	)		(67,442	)		(104,177	)		(195	)		(67,750	)		(76,233	)
	251,987			74,040			305,431			172,519			96,100			537,167			167,549			176,565
	1,724,311			426,021			192,398			1,160,598			735,628			1,176,283			1,194,351			344,756
	(7,678,182	)		(1,588,367	)		(4,135,002	)		(1,404,075	)		(776,558	)		(1,900,232	)		(1,425,019	)		(1,662,651	)
	16,076,087			6,642,241			20,179,561			11,496,546			7,955,556			33,102,954			4,116,985			634,352
	3			—			—			(19	)		—			—			—			(5	)
	8,397,908			5,053,874			16,044,559			10,092,452			7,178,998			31,202,722			2,691,966			(1,028,304	)
	(14,486,086	)		(6,753,851	)		(24,188,266	)		(11,073,703	)		(8,004,214	)		(32,667,566	)		(1,493,930	)		22,641
	2			—			—			14			—			—			—			—
	(14,486,084	)		(6,753,851	)		(24,188,266	)		(11,073,689	)		(8,004,214	)		(32,667,566	)		(1,493,930	)		22,641
	(6,088,176	)		(1,699,977	)		(8,143,707	)		(981,237	)		(825,216	)		(1,464,844	)		1,198,036			(1,005,663	)
$	(4,363,865	)	$	(1,273,956	)	$	(7,951,309	)	$	179,361		$	(89,588	)	$	(288,561	)	$	2,392,387		$	(660,907	)

93

Statements of Changes in Net Assets

For the years ended April 30, 2016 and 2015

	PowerShares Dynamic Large Cap Growth Portfolio (PWB)						PowerShares Dynamic Large Cap Value Portfolio (PWV)
	2016			2015			2016			2015
Operations:
Net investment income	$	2,394,933		$	1,840,465		$	24,237,976		$	19,697,950
Net realized gain (loss)		6,768,820			34,168,125			(23,521,415	)		93,932,303
Net change in unrealized appreciation (depreciation)		1,296,040			11,372,465			(24,474,487	)		(38,976,462	)
Net increase (decrease) in net assets resulting from operations		10,459,793			47,381,055			(23,757,926	)		74,653,791
Distributions to Shareholders from:
Net investment income		(2,182,044	)		(1,697,893	)		(23,938,985	)		(18,202,206	)
Shareholder Transactions:
Proceeds from shares sold		266,442,635			346,162,374			396,601,556			916,059,144
Value of shares repurchased		(158,547,925	)		(349,940,685	)		(460,948,721	)		(686,255,734	)
Net increase (decrease) in net assets resulting from shares transactions		107,894,710			(3,778,311	)		(64,347,165	)		229,803,410
Increase (Decrease) in Net Assets		116,172,459			41,904,851			(112,044,076	)		286,254,995
Net Assets:
Beginning of year		327,579,409			285,674,558			1,087,342,898			801,087,903
End of year	$	443,751,868		$	327,579,409		$	975,298,822		$	1,087,342,898
Undistributed net investment income at end of year	$	539,344		$	432,274		$	3,485,993		$	3,085,315
Changes in Shares Outstanding:
Shares sold		8,650,000			12,100,000			13,300,000			29,550,000
Shares repurchased		(5,100,000	)		(12,400,000	)		(15,400,000	)		(22,100,000	)
Shares outstanding, beginning of year		10,850,000			11,150,000			34,600,000			27,150,000
Shares outstanding, end of year		14,400,000			10,850,000			32,500,000			34,600,000

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

94

PowerShares Russell 2000 Equal Weight Portfolio  (EQWS)						PowerShares Russell 2000 Pure Growth Portfolio  (PXSG)						PowerShares Russell 2000 Pure Value Portfolio (PXSV)						PowerShares Russell Midcap Equal Weight Portfolio  (EQWM)
2016			2015			2016			2015			2016			2015			2016			2015
$	127,115		$	185,362		$	80,568		$	310,736		$	1,724,311		$	1,129,359		$	426,021		$	394,593
	1,476,128			297,102			5,313,096			291,590			8,397,908			902,187			5,053,874			1,616,014
	(2,766,711	)		1,067,365			(8,134,006	)		1,431,203			(14,486,084	)		2,026,494			(6,753,851	)		1,118,293
	(1,163,468	)		1,549,829			(2,740,342	)		2,033,529			(4,363,865	)		4,058,040			(1,273,956	)		3,128,900
	(138,899	)		(180,742	)		(145,600	)		(404,987	)		(1,647,876	)		(1,010,155	)		(425,755	)		(386,382	)
	12,873,920			—			35,117,426			1,289,891			68,582,873			6,269,836			24,737,975			8,075,100
	(14,648,979	)		—			(38,302,893	)		—			(74,996,370	)		(2,600,649	)		(33,973,183	)		(7,392,512	)
	(1,775,059	)		—			(3,185,467	)		1,289,891			(6,413,497	)		3,669,187			(9,235,208	)		682,588
	(3,077,426	)		1,369,087			(6,071,409	)		2,918,433			(12,425,238	)		6,717,072			(10,934,919	)		3,425,106
	16,152,733			14,783,646			32,790,644			29,872,211			72,092,853			65,375,781			34,292,253			30,867,147
$	13,075,307		$	16,152,733		$	26,719,235		$	32,790,644		$	59,667,615		$	72,092,853		$	23,357,334		$	34,292,253
$	14,585		$	27,273		$	14,997		$	80,029		$	322,551		$	178,519		$	48,478		$	48,100
	350,000			—			1,350,000			50,000			2,600,000			250,000			600,000			200,000
	(400,000	)		—			(1,500,000	)		—			(2,900,000	)		(100,000	)		(850,000	)		(200,000	)
	450,000			450,000			1,300,000			1,250,000			2,800,000			2,650,000			850,000			850,000
	400,000			450,000			1,150,000			1,300,000			2,500,000			2,800,000			600,000			850,000

95

Statements of Changes in Net Assets (continued)

For the years ended April 30, 2016 and 2015

	PowerShares Russell Midcap Pure Growth Portfolio (PXMG)						PowerShares Russell Midcap Pure Value Portfolio (PXMV)
	2016			2015			2016			2015
Operations:
Net investment income	$	192,398		$	1,361,832		$	1,160,598		$	783,939
Net realized gain (loss)		16,044,559			2,858,563			10,092,452			506,863
Net change in unrealized appreciation (depreciation)		(24,188,266	)		2,664,286			(11,073,689	)		2,388,681
Net increase (decrease) in net assets resulting from operations		(7,951,309	)		6,884,681			179,361			3,679,483
Distributions to Shareholders from:
Net investment income		(409,368	)		(1,325,669	)		(1,090,750	)		(710,318	)
Shareholder Transactions:
Proceeds from shares sold		91,126,421			1,625,910			43,244,079			6,659,516
Value of shares repurchased		(103,621,188	)		(10,869,623	)		(44,306,740	)		—
Net increase (decrease) in net assets resulting from shares transactions		(12,494,767	)		(9,243,713	)		(1,062,661	)		6,659,516
Increase (Decrease) in Net Assets		(20,855,444	)		(3,684,701	)		(1,974,050	)		9,628,681
Net Assets:
Beginning of year		87,870,438			91,555,139			52,337,646			42,708,965
End of year	$	67,014,994		$	87,870,438		$	50,363,596		$	52,337,646
Undistributed net investment income at end of year	$	16,867		$	233,837		$	193,728		$	123,899
Changes in Shares Outstanding:
Shares sold		2,800,000			50,000			1,550,000			250,000
Shares repurchased		(3,250,000	)		(350,000	)		(1,600,000	)		—
Shares outstanding, beginning of year		2,750,000			3,050,000			1,900,000			1,650,000
Shares outstanding, end of year		2,300,000			2,750,000			1,850,000			1,900,000

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

96

PowerShares Russell Top 200 Equal Weight Portfolio (EQWL)						PowerShares Russell Top 200 Pure Growth Portfolio (PXLG)						PowerShares Russell Top 200 Pure Value Portfolio (PXLV)						PowerShares Zacks Micro Cap Portfolio (PZI)
2016			2015			2016			2015			2016			2015			2016			2015
$	735,628		$	810,425		$	1,176,283		$	2,176,714		$	1,194,351		$	818,075		$	344,756		$	496,512
	7,178,998			1,042,260			31,202,722			1,975,121			2,691,966			(34,420	)		(1,028,304	)		(510,688	)
	(8,004,214	)		2,215,368			(32,667,566	)		14,906,809			(1,493,930	)		1,162,749			22,641			(58,247	)
	(89,588	)		4,068,053			(288,561	)		19,058,644			2,392,387			1,946,404			(660,907	)		(72,423	)
	(736,635	)		(759,003	)		(1,168,868	)		(2,084,013	)		(1,133,932	)		(752,115	)		(314,529	)		(822,121	)
	30,707,855			1,927,148			179,576,353			28,739,952			57,153,056			25,452,499			—			22,481,177
	(38,325,557	)		(3,757,982	)		(172,206,268	)		(6,534,201	)		(31,730,490	)		—			(6,919,902	)		(54,448,541	)
	(7,617,702	)		(1,830,834	)		7,370,085			22,205,751			25,422,566			25,452,499			(6,919,902	)		(31,967,364	)
	(8,443,925	)		1,478,216			5,912,656			39,180,382			26,681,021			26,646,788			(7,895,338	)		(32,861,908	)
	42,248,612			40,770,396			145,502,106			106,321,724			41,347,508			14,700,720			28,919,623			61,781,531
$	33,804,687		$	42,248,612		$	151,414,762		$	145,502,106		$	68,028,529		$	41,347,508		$	21,024,285		$	28,919,623
$	81,363		$	82,370		$	302,414		$	294,999		$	173,391		$	112,972		$	93,697		$	50,995
	750,000			50,000			5,350,000			900,000			2,000,000			849,999			—			1,350,000
	(950,000	)		(100,000	)		(5,050,000	)		(200,001	)		(1,050,000	)		—			(450,000	)		(3,350,000	)
	1,050,000			1,100,000			4,300,000			3,600,001			1,350,000			500,001			1,800,000			3,800,000
	850,000			1,050,000			4,600,000			4,300,000			2,300,000			1,350,000			1,350,000			1,800,000

97

Financial Highlights

PowerShares Dynamic Large Cap Growth Portfolio (PWB)

	Year Ended April 30,
	2016			2015			2014			2013			2012
Per Share Operating Performance:
Net asset value at beginning of year	$	30.19		$	25.62		$	21.29		$	18.73		$	17.63
Net investment income(a)		0.19			0.18			0.10			0.21			0.15
Net realized and unrealized gain on investments		0.62			4.56			4.34			2.55			1.09
Total from investment operations		0.81			4.74			4.44			2.76			1.24
Distributions to shareholders from:
Net investment income		(0.18	)		(0.17	)		(0.11	)		(0.20	)		(0.14	)
Net asset value at end of year	$	30.82		$	30.19		$	25.62		$	21.29		$	18.73
Market price at end of year(b)	$	30.81		$	30.17		$	25.62		$	21.28		$	18.72
Net Asset Value Total Return(c)		2.70	%		18.52	%		20.91	%		14.91	%		7.18	%
Market Price Total Return(c)		2.73	%		18.44	%		20.96	%		14.92	%		7.12	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	443,752		$	327,579		$	285,675		$	212,897		$	191,013
Ratio to average net assets of:
Expenses, after Waivers		0.57	%		0.58	%		0.58	%		0.59	%		0.61	%
Expenses, prior to Waivers		0.57	%		0.58	%		0.58	%		0.59	%		0.62	%
Net investment income, after Waivers		0.64	%		0.63	%		0.43	%		1.08	%		0.89	%
Portfolio turnover rate(d)		97	%		143	%		123	%		47	%		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 for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions.

PowerShares Dynamic Large Cap Value Portfolio (PWV)

	Year Ended April 30,
	2016			2015			2014			2013			2012
Per Share Operating Performance:
Net asset value at beginning of year	$	31.43		$	29.51		$	25.21		$	20.73		$	20.35
Net investment income(a)		0.73			0.64			0.55			0.52			0.46
Net realized and unrealized gain (loss) on investments		(1.43	)		1.88			4.30			4.48			0.38
Total from investment operations		(0.70	)		2.52			4.85			5.00			0.84
Distributions to shareholders from:
Net investment income		(0.72	)		(0.60	)		(0.55	)		(0.52	)		(0.46	)
Net asset value at end of year	$	30.01		$	31.43		$	29.51		$	25.21		$	20.73
Market price at end of year(b)	$	30.00		$	31.42		$	29.49		$	25.22		$	20.71
Net Asset Value Total Return(c)		(2.17	)%		8.56	%		19.48	%		24.55	%		4.34	%
Market Price Total Return(c)		(2.18	)%		8.60	%		19.35	%		24.72	%		4.20	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	975,299		$	1,087,343		$	801,088		$	574,825		$	419,740
Ratio to average net assets of:
Expenses, after Waivers		0.57	%		0.57	%		0.57	%		0.59	%		0.59	%
Expenses, prior to Waivers		0.57	%		0.57	%		0.57	%		0.59	%		0.59	%
Net investment income, after Waivers		2.44	%		2.10	%		2.04	%		2.36	%		2.39	%
Portfolio turnover rate(d)		98	%		82	%		103	%		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 for periods less than one year, if applicable, 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.

98

Financial Highlights (continued)

PowerShares Russell 2000 Equal Weight Portfolio (EQWS)

	Year Ended April 30,
	2016			2015			2014			2013			2012
Per Share Operating Performance:
Net asset value at beginning of year	$	35.89		$	32.85		$	27.80		$	24.21		$	25.32
Net investment income(a)		0.31			0.41			0.33			0.46			0.22
Net realized and unrealized gain (loss) on investments		(3.17	)		3.03			5.12			3.60			(1.18	)
Total from investment operations		(2.86	)		3.44			5.45			4.06			(0.96	)
Distributions to shareholders from:
Net investment income		(0.34	)		(0.40	)		(0.40	)		(0.47	)		(0.15	)
Net asset value at end of year	$	32.69		$	35.89		$	32.85		$	27.80		$	24.21
Market price at end of year(b)	$	32.71		$	35.90		$	32.84		$	27.76		$	24.18
Net Asset Value Total Return(c)		(8.00	)%		10.53	%		19.76	%		17.05	%		(3.70	)%
Market Price Total Return(c)		(7.97	)%		10.59	%		19.90	%		17.03	%		(3.85	)%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	13,075		$	16,153		$	14,784		$	15,290		$	15,735
Ratio to average net assets of:
Expenses, after Waivers		0.26	%(d)		0.39	%(d)		0.39	%		0.39	%		0.43	%
Expenses, prior to Waivers		1.17	%(d)		0.98	%(d)		0.94	%		1.22	%		1.25	%
Net investment income, after Waivers		0.94	%		1.20	%		1.06	%		1.88	%		0.97	%
Portfolio turnover rate(e)		143	%		7	%		50	%		45	%		97	%

^(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 companies’ 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 investment companies 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 for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. For the year ended April 30, 2016, 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.

99

Financial Highlights (continued)

PowerShares Russell 2000 Pure Growth Portfolio (PXSG)

	Year Ended April 30,
	2016			2015			2014			2013			2012
Per Share Operating Performance:
Net asset value at beginning of year	$	25.22		$	23.90		$	19.74		$	17.66		$	19.03
Net investment income(a)		0.06			0.25			0.20			0.13			0.07
Net realized and unrealized gain (loss) on investments		(1.93	)		1.39			4.17			2.08			(1.44	)
Total from investment operations		(1.87	)		1.64			4.37			2.21			(1.37	)
Distributions to shareholders from:
Net investment income		(0.12	)		(0.32	)		(0.21	)		(0.13	)		—
Net asset value at end of year	$	23.23		$	25.22		$	23.90		$	19.74		$	17.66
Market price at end of year(b)	$	23.26		$	25.21		$	23.89		$	19.72		$	17.64
Net Asset Value Total Return(c)		(7.47	)%		6.92	%		22.31	%		12.63	%		(7.20	)%
Market Price Total Return(c)		(7.31	)%		6.92	%		22.38	%		12.65	%		(7.40	)%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	26,719		$	32,791		$	29,872		$	26,646		$	30,913
Ratio to average net assets of:
Expenses, after Waivers		0.39	%(d)		0.39	%(d)		0.39	%(d)		0.39	%(d)		0.48	%
Expenses, prior to Waivers		0.67	%(d)		0.69	%(d)		0.70	%(d)		0.92	%(d)		0.69	%
Net investment income, after Waivers		0.27	%		1.02	%		0.90	%		0.72	%		0.41	%
Portfolio turnover rate(e)		144	%		6	%		39	%		39	%		189	%

^(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. Estimated investment companies’ 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 investment companies 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 for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. For the year ended April 30, 2016, 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.

100

Financial Highlights (continued)

PowerShares Russell 2000 Pure Value Portfolio (PXSV)

	Year Ended April 30,
	2016			2015			2014			2013			2012
Per Share Operating Performance:
Net asset value at beginning of year	$	25.75		$	24.67		$	19.63		$	16.35		$	17.07
Net investment income(a)		0.63			0.42			0.30			0.32			0.19
Net realized and unrealized gain (loss) on investments		(1.91	)		1.03			5.03			3.31			(0.72	)
Total from investment operations		(1.28	)		1.45			5.33			3.63			(0.53	)
Distributions to shareholders from:
Net investment income		(0.60	)		(0.37	)		(0.29	)		(0.35	)		(0.19	)
Net asset value at end of year	$	23.87		$	25.75		$	24.67		$	19.63		$	16.35
Market price at end of year(b)	$	23.88		$	25.75		$	24.68		$	19.61		$	16.33
Net Asset Value Total Return(c)		(4.93	)%		5.91	%		27.29	%		22.56	%		(3.01	)%
Market Price Total Return(c)		(4.90	)%		5.87	%		27.47	%		22.58	%		(3.18	)%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	59,668		$	72,093		$	65,376		$	48,084		$	52,312
Ratio to average net assets of:
Expenses, after Waivers		0.39	%		0.39	%		0.39	%		0.39	%		0.43	%
Expenses, prior to Waivers		0.50	%		0.55	%		0.54	%		0.70	%		0.64	%
Net investment income, after Waivers		2.67	%		1.65	%		1.31	%		1.87	%		1.28	%
Portfolio turnover rate(d)		137	%		5	%		43	%		31	%		109	%

^(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 for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. For the year ended April 30, 2016, 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 Russell Midcap Equal Weight Portfolio (EQWM)

	Year Ended April 30,
	2016			2015			2014			2013			2012
Per Share Operating Performance:
Net asset value at beginning of year	$	40.34		$	36.31		$	30.41		$	26.60		$	27.15
Net investment income(a)		0.56			0.50			0.40			0.43			0.29
Net realized and unrealized gain (loss) on investments		(1.41	)		4.03			5.90			3.80			(0.57	)
Total from investment operations		(0.85	)		4.53			6.30			4.23			(0.28	)
Distributions to shareholders from:
Net investment income		(0.56	)		(0.50	)		(0.40	)		(0.42	)		(0.27	)
Net asset value at end of year	$	38.93		$	40.34		$	36.31		$	30.41		$	26.60
Market price at end of year(b)	$	38.89		$	40.35		$	36.25		$	30.39		$	26.62
Net Asset Value Total Return(c)		(2.02	)%		12.52	%		20.85	%		16.16	%		(0.93	)%
Market Price Total Return(c)		(2.14	)%		12.73	%		20.73	%		16.00	%		(0.85	)%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	23,357		$	34,292		$	30,867		$	19,768		$	18,623
Ratio to average net assets of:
Expenses, after Waivers		0.26	%		0.39	%		0.39	%		0.39	%		0.43	%
Expenses, prior to Waivers		0.69	%		0.66	%		0.69	%		1.00	%		1.01	%
Net investment income, after Waivers		1.50	%		1.31	%		1.19	%		1.58	%		1.16	%
Portfolio turnover rate(d)		135	%		5	%		50	%		38	%		83	%

^(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 for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. For the year ended April 30, 2016, 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.

101

Financial Highlights (continued)

PowerShares Russell Midcap Pure Growth Portfolio (PXMG)

	Year Ended April 30,
	2016			2015			2014			2013			2012
Per Share Operating Performance:
Net asset value at beginning of year	$	31.95		$	30.02		$	26.06		$	22.65		$	24.13
Net investment income(a)		0.07			0.47			0.33			0.26			0.13
Net realized and unrealized gain (loss) on investments		(2.72	)		1.92			4.01			3.38			(1.53	)
Total from investment operations		(2.65	)		2.39			4.34			3.64			(1.40	)
Distributions to shareholders from:
Net investment income		(0.16	)		(0.46	)		(0.38	)		(0.23	)		(0.08	)
Net asset value at end of year	$	29.14		$	31.95		$	30.02		$	26.06		$	22.65
Market price at end of year(b)	$	29.12		$	31.95		$	29.99		$	26.04		$	22.63
Net Asset Value Total Return(c)		(8.34	)%		7.98	%		16.80	%		16.23	%		(5.74	)%
Market Price Total Return(c)		(8.40	)%		8.09	%		16.77	%		16.25	%		(5.83	)%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	67,015		$	87,870		$	91,555		$	82,101		$	87,203
Ratio to average net assets of:
Expenses, after Waivers		0.39	%		0.39	%		0.39	%		0.39	%		0.43	%
Expenses, prior to Waivers		0.44	%		0.46	%		0.45	%		0.54	%		0.55	%
Net investment income, after Waivers		0.25	%		1.51	%		1.19	%		1.14	%		0.61	%
Portfolio turnover rate(d)		147	%		3	%		33	%		33	%		75	%

^(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 for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. For the year ended April 30, 2016, 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.

102

Financial Highlights (continued)

PowerShares Russell Midcap Pure Value Portfolio (PXMV)

	Year Ended April 30,
	2016			2015			2014			2013			2012
Per Share Operating Performance:
Net asset value at beginning of year	$	27.55		$	25.88		$	20.98		$	17.06		$	17.07
Net investment income(a)		0.68			0.43			0.37			0.37			0.25
Net realized and unrealized gain (loss) on investments		(0.37	)		1.63			4.87			3.94			(0.03	)
Total from investment operations		0.31			2.06			5.24			4.31			0.22
Distributions to shareholders from:
Net investment income		(0.64	)		(0.39	)		(0.34	)		(0.39	)		(0.23	)
Net asset value at end of year	$	27.22		$	27.55		$	25.88		$	20.98		$	17.06
Market price at end of year(b)	$	27.21		$	27.53		$	25.87		$	20.98		$	17.04
Net Asset Value Total Return(c)		1.35	%		7.98	%		25.19	%		25.74	%		1.42	%
Market Price Total Return(c)		1.39	%		7.94	%		25.14	%		25.89	%		1.30	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	50,364		$	52,338		$	42,709		$	28,321		$	32,408
Ratio to average net assets of:
Expenses, after Waivers		0.39	%(d)		0.39	%(d)		0.39	%		0.39	%		0.43	%
Expenses, prior to Waivers		0.54	%(d)		0.56	%(d)		0.62	%		0.82	%		0.79	%
Net investment income, after Waivers		2.62	%		1.58	%		1.56	%		2.08	%		1.57	%
Portfolio turnover rate(e)		131	%		4	%		33	%		25	%		83	%

^(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 companies’ 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 investment companies 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 for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. For the year ended April 30, 2016, 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 Russell Top 200 Equal Weight Portfolio (EQWL)

	Year Ended April 30,
	2016			2015			2014			2013			2012
Per Share Operating Performance:
Net asset value at beginning of year	$	40.24		$	37.06		$	30.97		$	26.66		$	26.42
Net investment income(a)		0.78			0.75			0.63			0.65			0.57
Net realized and unrealized gain (loss) on investments		(0.48	)		3.14			6.03			4.35			0.32
Total from investment operations		0.30			3.89			6.66			5.00			0.89
Distributions to shareholders from:
Net investment income		(0.77	)		(0.71	)		(0.57	)		(0.69	)		(0.65	)
Net asset value at end of year	$	39.77		$	40.24		$	37.06		$	30.97		$	26.66
Market price at end of year(b)	$	39.73		$	40.21		$	37.08		$	30.98		$	26.66
Net Asset Value Total Return(c)		0.81	%		10.52	%		21.69	%		19.10	%		3.64	%
Market Price Total Return(c)		0.78	%		10.38	%		21.72	%		19.15	%		3.64	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	33,805		$	42,249		$	40,770		$	27,874		$	25,326
Ratio to average net assets of:
Expenses, after Waivers		0.26	%		0.39	%		0.39	%		0.39	%		0.43	%
Expenses, prior to Waivers		0.54	%		0.57	%		0.60	%		0.80	%		0.90	%
Net investment income, after Waivers		1.99	%		1.92	%		1.85	%		2.38	%		2.32	%
Portfolio turnover rate(d)		101	%		3	%		38	%		43	%		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 for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. For the year ended April 30, 2016, 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.

103

Financial Highlights (continued)

PowerShares Russell Top 200 Pure Growth Portfolio (PXLG)

	Year Ended April 30,												For the Period June 13, 2011(a) Through April 30, 2012
	2016			2015			2014			2013
Per Share Operating Performance:
Net asset value at beginning of period	$	33.84		$	29.53		$	25.10		$	22.20		$	20.00
Net investment income(b)		0.28			0.55			0.50			0.39			0.28
Net realized and unrealized gain (loss) on investments		(0.91	)		4.29			4.57			2.87			2.09
Total from investment operations		(0.63	)		4.84			5.07			3.26			2.37
Distributions to shareholders from:
Net investment income		(0.29	)		(0.53	)		(0.62	)		(0.36	)		(0.17	)
Net realized gains		—			—			(0.02	)		—			—
Total distributions		(0.29	)		(0.53	)		(0.64	)		(0.36	)		(0.17	)
Net asset value at end of period	$	32.92		$	33.84		$	29.53		$	25.10		$	22.20
Market price at end of period(c)	$	32.92		$	33.82		$	29.52		$	25.08		$	22.19
Net Asset Value Total Return(d)		(1.89	)%		16.49	%		20.54	%		14.87	%		11.99	%(e)
Market Price Total Return(d)		(1.83	)%		16.46	%		20.59	%		14.83	%		11.94	%(e)
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	151,415		$	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	%		0.39	%(f)
Expenses, prior to Waivers		0.39	%		0.43	%		0.45	%		0.79	%		7.69	%(f)
Net investment income, after Waivers		0.85	%		1.73	%		1.84	%		1.63	%		1.54	%(f)
Portfolio turnover rate(g)		105	%		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 for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. For the year ended April 30, 2016, 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 Russell Top 200 Pure Value Portfolio (PXLV)

	Year Ended April 30,												For the Period June 13, 2011(a) Through April 30, 2012
	2016			2015			2014			2013
Per Share Operating Performance:
Net asset value at beginning of period	$	30.63		$	29.40		$	25.16		$	20.37		$	20.00
Net investment income(b)		0.80			0.72			0.63			0.52			0.39
Net realized and unrealized gain (loss) on investments		(1.09	)		1.16			4.17			4.77			0.33
Total from investment operations		(0.29	)		1.88			4.80			5.29			0.72
Distributions to shareholders from:
Net investment income		(0.76	)		(0.65	)		(0.54	)		(0.50	)		(0.35	)
Net realized gains		—			—			(0.02	)		—			—
Total distributions		(0.76	)		(0.65	)		(0.56	)		(0.50	)		(0.35	)
Net asset value at end of period	$	29.58		$	30.63		$	29.40		$	25.16		$	20.37
Market price at end of period(c)	$	29.55		$	30.62		$	29.39		$	25.16		$	20.35
Net Asset Value Total Return(d)		(0.84	)%		6.41	%		19.27	%		26.41	%		3.80	%(e)
Market Price Total Return(d)		(0.92	)%		6.41	%		19.23	%		26.53	%		3.70	%(e)
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	68,029		$	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	%		0.39	%(f)
Expenses, prior to Waivers		0.55	%		0.62	%		1.05	%		2.10	%		2.87	%(f)
Net investment income, after Waivers		2.78	%		2.37	%		2.32	%		2.43	%		2.38	%(f)
Portfolio turnover rate(g)		77	%		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 for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. For the year ended April 30, 2016, 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 Zacks Micro Cap Portfolio (PZI)

	Year Ended April 30,
	2016			2015			2014			2013			2012
Per Share Operating Performance:
Net asset value at beginning of year	$	16.07		$	16.26		$	13.57		$	11.34		$	12.53
Net investment income(a)		0.21			0.21			0.20			0.20			0.10
Net realized and unrealized gain (loss) on investments		(0.52	)		(0.09	)		2.65			2.25			(1.16	)
Total from investment operations		(0.31	)		0.12			2.85			2.45			(1.06	)
Distributions to shareholders from:
Net investment income		(0.19	)		(0.31	)		(0.16	)		(0.22	)		(0.13	)
Net asset value at end of year	$	15.57		$	16.07		$	16.26		$	13.57		$	11.34
Market price at end of year(b)	$	15.57		$	16.05		$	16.25		$	13.54		$	11.32
Net Asset Value Total Return(c)		(1.94	)%		0.71	%		21.06	%		21.95	%		(8.34	)%
Market Price Total Return(c)		(1.82	)%		0.64	%		21.25	%		21.90	%		(8.42	)%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	21,024		$	28,920		$	61,782		$	42,055		$	34,019
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)		1.00	%		0.90	%		0.79	%		0.98	%		0.92	%
Net investment income, after Waivers		1.37	%		1.28	%		1.29	%		1.72	%		0.92	%
Portfolio turnover rate(e)		134	%		115	%		123	%		96	%		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)  In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the investment companies in which the Fund invests. Estimated investment companies’ expenses are not expenses that are incurred directly by the Fund. They are expenses that are incurred directly by the investment companies and are deducted from the value of the investment companies 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 for periods less than one year, if applicable, 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, 2016

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, 2016, 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 Russell 2000 Equal Weight Portfolio (EQWS)	“Russell 2000 Equal Weight Portfolio”
PowerShares Russell 2000 Pure Growth Portfolio (PXSG)	“Russell 2000 Pure Growth Portfolio”
PowerShares Russell 2000 Pure Value Portfolio (PXSV)	“Russell 2000 Pure Value Portfolio”
PowerShares Russell Midcap Equal Weight Portfolio (EQWM)	“Russell Midcap Equal Weight Portfolio”
PowerShares Russell Midcap Pure Growth Portfolio (PXMG)	“Russell Midcap Pure Growth Portfolio”
PowerShares Russell Midcap Pure Value Portfolio (PXMV)	“Russell Midcap Pure Value Portfolio”
PowerShares Russell Top 200 Equal Weight Portfolio (EQWL)	“Russell Top 200 Equal Weight Portfolio”
PowerShares Russell Top 200 Pure Growth Portfolio (PXLG)	“Russell Top 200 Pure Growth Portfolio”
PowerShares Russell Top 200 Pure Value Portfolio (PXLV)	“Russell Top 200 Pure 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
Russell 2000 Equal Weight Portfolio	Russell 2000® Equal Weight Index
Russell 2000 Pure Growth Portfolio	Russell 2000® Pure Growth Index
Russell 2000 Pure Value Portfolio	Russell 2000® Pure Value Index
Russell Midcap Equal Weight Portfolio	Russell Midcap® Equal Weight Index
Russell Midcap Pure Growth Portfolio	Russell Midcap® Pure Growth Index
Russell Midcap Pure Value Portfolio	Russell Midcap® Pure Value Index
Russell Top 200 Equal Weight Portfolio	Russell Top 200® Equal Weight Index
Russell Top 200 Pure Growth Portfolio	Russell Top 200® Pure Growth Index
Russell Top 200 Pure Value Portfolio	Russell Top 200® Pure 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 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 will 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. Russell Top 200 Pure Growth Portfolio and Russell Top 200 Pure 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.

Small and Medium Capitalization Company Risk. For Russell 2000 Equal Weight Portfolio, Russell 2000 Pure Growth Portfolio, Russell 2000 Pure Value Portfolio, Russell Midcap Equal Weight Portfolio, Russell Midcap Pure Growth Portfolio and Russell Midcap Pure 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, Russell 2000 Pure Growth Portfolio, Russell Midcap Pure Growth Portfolio and Russell Top 200 Pure 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.

Value Risk. For Dynamic Large Cap Value Portfolio, Russell 2000 Pure Value Portfolio, Russell Midcap Pure Value Portfolio and Russell Top 200 Pure 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.

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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.

The Funds may periodically participate in litigation related to each Fund’s investments. As such, the Funds may receive proceeds from litigation settlements. Any proceeds received are included in the Statements of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.

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

Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statements of Operations and the Statements of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of each Fund’s net asset value and, accordingly, they reduce each Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statements of Operations and the Statements of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between each Fund and the Adviser.

E. Country Determination

For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the Adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.

F. 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.

G. 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-

110

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.

H. Securities Lending

During the fiscal year ended April 30, 2016, Russell 2000 Pure Growth Portfolio, Russell 2000 Pure Value Portfolio, Russell Midcap Equal Weight Portfolio, Russell Midcap Pure Growth Portfolio, Russell Midcap Pure 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 securities) 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 Schedules of Investments. Each Fund bears the risk of loss with respect to the investment of collateral. 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. When loaning securities, each Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to each 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. The securities loaned are subject to termination at the option of the borrower or each Fund. Upon termination, the borrower will return to each Fund the securities loaned and each Fund will return the collateral. 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. Each Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to each Fund. Some of these losses may be indemnified by the lending agent. Each 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, Russell 2000 Equal Weight Portfolio, Russell Midcap Equal Weight Portfolio, Russell Top 200 Equal Weight 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 Russell 2000 Equal Weight Portfolio, Russell Midcap Equal Weight Portfolio and Russell Top 200 Equal Weight Portfolio has agreed to pay the Adviser an annual fee of 0.25% (0.29% prior to May 22, 2015) 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, Russell 2000 Equal Weight Portfolio, Russell Midcap Equal Weight Portfolio, Russell Top 200 Equal Weight 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, 2017. The Expense Cap for each of Russell 2000 Equal Weight Portfolio, Russell Midcap Equal Weight Portfolio and Russell Top 200 Equal Weight Portfolio is 0.25% (0.39% prior to May 22, 2015) of the Fund’s average daily net assets per year, through at least August 31, 2017. 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, 2017, 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, 2017. During its term, the Expense Agreement cannot be terminated or amended to increase the Expense Cap without approval of the Board of Trustees. The Adviser did not waive fees and/or pay Fund expenses during the period under this Expense Cap for Dynamic Large Cap Growth Portfolio, Dynamic Large Cap Value Portfolio and Russell Top 200 Pure Growth Portfolio.

Further, through August 31, 2018, 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.

111

For the fiscal year ended April 30, 2016, the Adviser waived fees and/or paid Fund expenses for each Fund in the following amounts:

Dynamic Large Cap Growth Portfolio	$	298
Dynamic Large Cap Value Portfolio		1,030
Russell 2000 Equal Weight Portfolio		122,434
Russell 2000 Pure Growth Portfolio		85,794
Russell 2000 Pure Value Portfolio		69,112
Russell Midcap Equal Weight Portfolio		121,212
Russell Midcap Pure Growth Portfolio		43,170
Russell Midcap Pure Value Portfolio		67,442
Russell Top 200 Equal Weight Portfolio		104,177
Russell Top 200 Pure Growth Portfolio		195
Russell Top 200 Pure Value Portfolio		67,750
Zacks Micro Cap Portfolio		76,233

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, 2016 are as follows:

	Total Potential Recapture Amounts		Potential Recapture Amounts Expiring
			4/30/17		4/30/18		4/30/19
Russell 2000 Equal Weight Portfolio	$	300,712	$	86,766	$	91,595	$	122,351
Russell 2000 Pure Growth Portfolio		266,983		88,188		93,101		85,694
Russell 2000 Pure Value Portfolio		266,499		88,541		108,992		68,966
Russell Midcap Equal Weight Portfolio		280,932		79,739		80,056		121,137
Russell Midcap Pure Growth Portfolio		159,830		52,601		64,245		42,984
Russell Midcap Pure Value Portfolio		238,884		84,721		86,833		67,330
Russell Top 200 Equal Weight Portfolio		252,658		72,372		76,197		104,089
Russell Top 200 Pure Growth Portfolio		101,105		55,612		45,493		—
Russell Top 200 Pure Value Portfolio		229,060		81,582		79,809		67,669
Zacks Micro Cap Portfolio		203,359		50,214		77,042		76,103

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 Group, Inc.
Dynamic Large Cap Value Portfolio	NYSE Group, Inc.
Russell 2000 Equal Weight Portfolio	Frank Russell Company
Russell 2000 Pure Growth Portfolio	Frank Russell Company
Russell 2000 Pure Value Portfolio	Frank Russell Company
Russell Midcap Equal Weight Portfolio	Frank Russell Company
Russell Midcap Pure Growth Portfolio	Frank Russell Company
Russell Midcap Pure Value Portfolio	Frank Russell Company
Russell Top 200 Equal Weight Portfolio	Frank Russell Company
Russell Top 200 Pure Growth Portfolio	Frank Russell Company
Russell Top 200 Pure Value Portfolio	Frank Russell Company
Zacks Micro Cap Portfolio	Zacks Investment Research

112

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, 2016.

Russell 2000 Equal Weight Portfolio

	Value April 30, 2015		Purchases at Cost		Proceeds from Sales			Change in Unrealized Appreciation (Depreciation)			Realized Gain (Loss)			Value April 30, 2016		Dividend Income
Invesco Mortgage Capital, Inc. REIT	$	—	$	4,889	$	(961	)	$	(626	)	$	(64	)	$	3,238	$	395

Russell 2000 Pure Value Portfolio

	Value April 30, 2015		Purchases at Cost		Proceeds from Sales			Change in Unrealized Appreciation (Depreciation)			Realized Gain (Loss)			Value April 30, 2016		Dividend Income
Invesco Mortgage Capital, Inc. REIT	$	—	$	376,137	$	(53,287	)	$	(58,261	)	$	(6,625	)	$	257,964	$	33,490

Russell Midcap Equal Weight Portfolio

	Value April 30, 2015		Purchases at Cost		Proceeds from Sales			Change in Unrealized Appreciation (Depreciation)			Realized Gain		Value April 30, 2016		Dividend Income
Invesco Ltd.	$	423,478	$	302,521	$	(699,007	)	$	(90,572	)	$	76,139	$	12,559	$	3,001

Russell Midcap Pure Growth Portfolio

	Value April 30, 2015		Purchases at Cost		Proceeds from Sales			Change in Unrealized Appreciation		Realized Gain (Loss)			Value April 30, 2016		Dividend Income
Invesco Mortgage Capital, Inc. REIT*	$	347,563	$	262,856	$	(620,868	)	$	44,014	$	(33,565	)	$	—	$	—

* At April 30, 2016, this security was no longer held.

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.

113

Except for the Funds listed below, as of April 30, 2016, 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
Russell 2000 Equal Weight Portfolio
Equity Securities	$	13,092,985	$	14	$	1,116	$	13,094,115
Russell 2000 Pure Value Portfolio
Equity Securities	$	62,560,048	$	—	$	104,888	$	62,664,936
Zacks Micro Cap Portfolio
Equity Securities	$	21,317,692	$	—	$	2,209	$	21,319,901

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, 2016 and 2015:

	2016		2015
	Ordinary Income		Ordinary Income
Dynamic Large Cap Growth Portfolio	$	2,182,044	$	1,697,893
Dynamic Large Cap Value Portfolio		23,938,985		18,202,206
Russell 2000 Equal Weight Portfolio		138,899		180,742
Russell 2000 Pure Growth Portfolio		145,600		404,987
Russell 2000 Pure Value Portfolio		1,647,876		1,010,155
Russell Midcap Equal Weight Portfolio		425,755		386,382
Russell Midcap Pure Growth Portfolio		409,368		1,325,669
Russell Midcap Pure Value Portfolio		1,090,750		710,318
Russell Top 200 Equal Weight Portfolio		736,635		759,003
Russell Top 200 Pure Growth Portfolio		1,168,868		2,084,013
Russell Top 200 Pure Value Portfolio		1,133,932		752,115
Zacks Micro Cap Portfolio		314,529		822,121

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— Other Investments		Capital Loss Carryforwards			Post-October Capital Losses Deferrals*			Shares of Beneficial Interest		Total Net Assets
Dynamic Large Cap Growth Portfolio	$	571,159	$	(31,815	)	$	35,147,537		$	—	$	(246,244,318	)	$	(9,146,767	)	$	663,456,072	$	443,751,868
Dynamic Large Cap Value Portfolio		3,528,051		(42,058	)		41,309,363			—		(199,857,395	)		(33,105,856	)		1,163,466,717		975,298,822
Russell 2000 Equal Weight Portfolio		30,074		(14,063	)		(631,269	)		—		(9,593,005	)		(655,913	)		23,939,483		13,075,307
Russell 2000 Pure Growth Portfolio		30,387		(15,390	)		(3,154,296	)		—		(32,769,693	)		(851	)		62,629,078		26,719,235
Russell 2000 Pure Value Portfolio		339,783		(17,232	)		(5,633,883	)		2		(37,378,801	)		(1,448,765	)		103,806,511		59,667,615
Russell Midcap Equal Weight Portfolio		63,001		(14,523	)		(2,039,522	)		—		(10,594,563	)		(410,690	)		36,353,631		23,357,334
Russell Midcap Pure Growth Portfolio		39,135		(22,268	)		(7,207,789	)		—		(161,867,752	)		—			236,073,668		67,014,994
Russell Midcap Pure Value Portfolio		209,723		(15,995	)		(1,498,231	)		—		(37,852,086	)		—			89,520,185		50,363,596

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	Undistributed Ordinary Income		Temporary Book/Tax Differences			Net Unrealized Appreciation (Depreciation)— Investment Securities			Net Unrealized Appreciation— Other Investments		Capital Loss Carryforwards			Post-October Capital Losses Deferrals*			Shares of Beneficial Interest		Total Net Assets
Russell Top 200 Equal Weight Portfolio	$	96,456	$	(15,093	)	$	(213,778	)	$	—	$	(10,797,188	)	$	(161,384	)	$	44,895,674	$	33,804,687
Russell Top 200 Pure Growth Portfolio		313,790		(11,376	)		(1,486,902	)		—		(2,340,839	)		(5,492	)		154,945,581		151,414,762
Russell Top 200 Pure Value Portfolio		183,047		(9,656	)		1,022,990			—		(880,216	)		—			67,712,364		68,028,529
Zacks Micro Cap Portfolio		139,449		(17,259	)		1,482,349			—		(69,673,446	)		(779,969	)		89,873,161		21,024,285

* 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, 2016:

							Post-effective/no expiration
	2017		2018		2019		Short-Term		Long-Term		Total*		Expired
Dynamic Large Cap Growth Portfolio	$	68,715,641	$	131,638,879	$	15,986,258	$	29,903,540	$	—	$	246,244,318	$	14,024,455
Dynamic Large Cap Value Portfolio		22,558,581		56,819,182		17,964,198		89,975,320		12,540,114		199,857,395		2,783,761
Russell 2000 Equal Weight Portfolio		2,738,120		2,009,294		2,491,519		1,616,951		737,121		9,593,005		1,028,299
Russell 2000 Pure Growth Portfolio		9,888,431		10,392,627		4,547,805		5,052,782		2,888,048		32,769,693		6,666,558
Russell 2000 Pure Value Portfolio		16,547,947		9,588,502		5,376,983		1,312,125		4,553,244		37,378,801		8,615,687
Russell Midcap Equal Weight Portfolio		3,815,763		3,611,366		741,893		1,442,431		983,110		10,594,563		628,828
Russell Midcap Pure Growth Portfolio		54,769,394		82,364,246		12,021,724		7,498,360		5,214,028		161,867,752		5,112,579
Russell Midcap Pure Value Portfolio		12,697,113		18,996,863		2,751,107		2,459,036		947,967		37,852,086		5,347,255
Russell Top 200 Equal Weight Portfolio		2,328,337		5,621,834		1,626,267		951,778		268,972		10,797,188		87,112
Russell Top 200 Pure Growth Portfolio		—		—		—		921,324		1,419,515		2,340,839		—
Russell Top 200 Pure Value Portfolio		—		—		—		377,191		503,025		880,216		—
Zacks Micro Cap Portfolio		28,782,755		12,380,833		7,234,973		19,513,243		1,761,642		69,673,446		14,330,930

* 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.

115

Note 7. Investment Transactions

For the fiscal year ended April 30, 2016, 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	$	364,472,933	$	365,163,753
Dynamic Large Cap Value Portfolio		971,870,026		970,618,740
Russell 2000 Equal Weight Portfolio		19,514,821		19,537,154
Russell 2000 Pure Growth Portfolio		43,472,408		43,959,857
Russell 2000 Pure Value Portfolio		88,643,294		88,783,805
Russell Midcap Equal Weight Portfolio		38,755,897		38,451,221
Russell Midcap Pure Growth Portfolio		114,805,832		114,495,355
Russell Midcap Pure Value Portfolio		59,939,841		59,119,489
Russell Top 200 Equal Weight Portfolio		37,073,231		38,831,112
Russell Top 200 Pure Growth Portfolio		146,143,987		146,250,590
Russell Top 200 Pure Value Portfolio		34,124,852		34,556,807
Zacks Micro Cap Portfolio		33,782,149		33,684,831

For the fiscal year ended April 30, 2016, in-kind transactions associated with creations and redemptions were as follows:

	Cost of Securities Received		Value of Securities Delivered
Dynamic Large Cap Growth Portfolio	$	266,306,487	$	157,411,218
Dynamic Large Cap Value Portfolio		395,775,578		460,247,244
Russell 2000 Equal Weight Portfolio		12,809,631		14,549,031
Russell 2000 Pure Growth Portfolio		35,046,325		37,796,078
Russell 2000 Pure Value Portfolio		68,258,182		74,254,530
Russell Midcap Equal Weight Portfolio		24,744,111		34,216,678
Russell Midcap Pure Growth Portfolio		91,131,976		104,002,481
Russell Midcap Pure Value Portfolio		43,123,972		44,728,569
Russell Top 200 Equal Weight Portfolio		30,588,440		36,378,439
Russell Top 200 Pure Growth Portfolio		179,149,401		171,608,139
Russell Top 200 Pure Value Portfolio		57,037,494		31,115,321
Zacks Micro Cap Portfolio		—		6,880,111

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

At April 30, 2016, 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 Large Cap Growth Portfolio	$	41,767,532	$	(6,619,995	)	$	35,147,537		$	408,566,432
Dynamic Large Cap Value Portfolio		60,377,854		(19,068,491	)		41,309,363			934,095,309
Russell 2000 Equal Weight Portfolio		1,111,205		(1,742,474	)		(631,269	)		13,725,384
Russell 2000 Pure Growth Portfolio		2,135,366		(5,289,662	)		(3,154,296	)		31,982,609
Russell 2000 Pure Value Portfolio		4,903,149		(10,537,032	)		(5,633,883	)		68,298,819
Russell Midcap Equal Weight Portfolio		1,353,040		(3,392,562	)		(2,039,522	)		25,521,686
Russell Midcap Pure Growth Portfolio		5,293,916		(12,501,705	)		(7,207,789	)		74,487,841
Russell Midcap Pure Value Portfolio		3,303,857		(4,802,088	)		(1,498,231	)		54,268,918
Russell Top 200 Equal Weight Portfolio		2,267,568		(2,481,346	)		(213,778	)		34,033,570
Russell Top 200 Pure Growth Portfolio		10,336,775		(11,823,677	)		(1,486,902	)		152,897,999
Russell Top 200 Pure Value Portfolio		2,342,512		(1,319,522	)		1,022,990			67,002,053
Zacks Micro Cap Portfolio		2,277,045		(794,696	)		1,482,349			19,837,552

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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, 2016, 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, 2016, the reclassifications were as follows:

	Undistributed Net Investment Income			Undistributed Net Realized Gain (Loss)			Shares of Beneficial Interest
Dynamic Large Cap Growth Portfolio	$	(105,819	)	$	(9,054,835	)	$	9,160,654
Dynamic Large Cap Value Portfolio		101,687			(50,264,549	)		50,162,862
Russell 2000 Equal Weight Portfolio		(904	)		(2,021,479	)		2,022,383
Russell 2000 Pure Growth Portfolio		—			(975,891	)		975,891
Russell 2000 Pure Value Portfolio		67,597			(6,421,900	)		6,354,303
Russell Midcap Equal Weight Portfolio		112			(5,766,205	)		5,766,093
Russell Midcap Pure Growth Portfolio		—			(14,376,116	)		14,376,116
Russell Midcap Pure Value Portfolio		(19	)		(5,805,154	)		5,805,173
Russell Top 200 Equal Weight Portfolio		—			(7,749,637	)		7,749,637
Russell Top 200 Pure Growth Portfolio		—			(32,597,245	)		32,597,245
Russell Top 200 Pure Value Portfolio		—			(3,896,224	)		3,896,224
Zacks Micro Cap Portfolio		12,475			13,748,309			(13,760,784	)

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.

On February 18, 2016, mutual funds affiliated with the Funds’ Adviser purchased in the secondary market 1,019,916 Shares of Russell Top 200 Pure Growth Portfolio valued at $30,960,774 and 1,097,263 Shares of Russell Top 200 Pure Value Portfolio valued at $29,526,689.

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.

117

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 Russell 2000 Equal Weight Portfolio, PowerShares Russell 2000 Pure Growth Portfolio, PowerShares Russell 2000 Pure Value Portfolio, PowerShares Russell Midcap Equal Weight Portfolio, PowerShares Russell Midcap Pure Growth Portfolio, PowerShares Russell Midcap Pure Value Portfolio, PowerShares Russell Top 200 Equal Weight Portfolio, PowerShares Russell Top 200 Pure Growth Portfolio, PowerShares Russell Top 200 Pure 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, 2016, 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, 2016 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 23, 2016

118

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, 2016.

In addition to the fees and expenses which the PowerShares Russell 2000 Equal Weight Portfolio, PowerShares Russell 2000 Pure Growth Portfolio, PowerShares Russell Midcap Pure Value 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 is 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 the Fund. If transaction costs and indirect expenses were included, your costs would have been higher.

	Beginning Account Value November 1, 2015		Ending Account Value April 30, 2016		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	$	993.45		0.57	%	$	2.83
Hypothetical (5% return before expenses)		1,000.00		1,022.03		0.57			2.87
PowerShares Dynamic Large Cap Value Portfolio (PWV)
Actual		1,000.00		1,018.78		0.57			2.86
Hypothetical (5% return before expenses)		1,000.00		1,022.03		0.57			2.87
PowerShares Russell 2000 Equal Weight Portfolio (EQWS)
Actual		1,000.00		988.12		0.25			1.24
Hypothetical (5% return before expenses)		1,000.00		1,023.62		0.25			1.26
PowerShares Russell 2000 Pure Growth Portfolio (PXSG)
Actual		1,000.00		950.55		0.39			1.89
Hypothetical (5% return before expenses)		1,000.00		1,022.92		0.39			1.96

119

Fees and Expenses (continued)

	Beginning Account Value November 1, 2015		Ending Account Value April 30, 2016		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During the Six-Month Period(1)
PowerShares Russell 2000 Pure Value Portfolio (PXSV)
Actual	$	1,000.00	$	1,002.06		0.39	%	$	1.94
Hypothetical (5% return before expenses)		1,000.00		1,022.92		0.39			1.96
PowerShares Russell Midcap Equal Weight Portfolio (EQWM)
Actual		1,000.00		1,038.50		0.25			1.27
Hypothetical (5% return before expenses)		1,000.00		1,023.62		0.25			1.26
PowerShares Russell Midcap Pure Growth Portfolio (PXMG)
Actual		1,000.00		952.70		0.39			1.89
Hypothetical (5% return before expenses)		1,000.00		1,022.92		0.39			1.96
PowerShares Russell Midcap Pure Value Portfolio (PXMV)
Actual		1,000.00		1,057.66		0.39			2.00
Hypothetical (5% return before expenses)		1,000.00		1,022.92		0.39			1.96
PowerShares Russell Top 200 Equal Weight Portfolio (EQWL)
Actual		1,000.00		1,010.16		0.25			1.25
Hypothetical (5% return before expenses)		1,000.00		1,023.62		0.25			1.26
PowerShares Russell Top 200 Pure Growth Portfolio (PXLG)
Actual		1,000.00		965.28		0.39			1.91
Hypothetical (5% return before expenses)		1,000.00		1,022.92		0.39			1.96
PowerShares Russell Top 200 Pure Value Portfolio (PXLV)
Actual		1,000.00		1,020.30		0.39			1.96
Hypothetical (5% return before expenses)		1,000.00		1,022.92		0.39			1.96
PowerShares Zacks Micro Cap Portfolio (PZI)
Actual		1,000.00		1,012.16		0.70			3.50
Hypothetical (5% return before expenses)		1,000.00		1,021.38		0.70			3.52

⁽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, 2016. Expenses are calculated by multiplying the Fund’s annualized expense ratio by the average account value for the period, then multiplying the result by 182/366. Expense ratios for the most recent six-month period may differ from expense ratios based on the annualized data in the Financial Highlights.

120

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, 2016:

	Qualified Dividend Income*			Dividends-Received Deduction*
PowerShares Dynamic Large Cap Growth Portfolio		100	%		100	%
PowerShares Dynamic Large Cap Value Portfolio		100	%		100	%
PowerShares Russell 2000 Equal Weight Portfolio		100	%		100	%
PowerShares Russell 2000 Pure Growth Portfolio		100	%		97	%
PowerShares Russell 2000 Pure Value Portfolio		81	%		78	%
PowerShares Russell Midcap Equal Weight Portfolio		100	%		100	%
PowerShares Russell Midcap Pure Growth Portfolio		100	%		95	%
PowerShares Russell Midcap Pure Value Portfolio		86	%		82	%
PowerShares Russell Top 200 Equal Weight Portfolio		100	%		100	%
PowerShares Russell Top 200 Pure Growth Portfolio		100	%		100	%
PowerShares Russell Top 200 Pure Value Portfolio		100	%		100	%
PowerShares Zacks Micro Cap Portfolio		100	%		100	%

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

121

Trustees and Officers

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

The Trustees and officers information is current as of April 30, 2016.

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	Chairman of the Nominating and Governance Committee and Trustee	Chairman of the Nominating and Governance Committee and 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).	124	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 (2010-2016); 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.	124	None
Marc M. Kole—1960 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Chairman of the Audit Committee and Trustee	Chairman of the Audit Committee since 2008; and Trustee since 2006	Senior Director of Finance, By The Hand Club for Kids (2015-Present); 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).	124	None
Yung Bong Lim—1964 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Chairman of the Investment Oversight Committee and Trustee	Chairman of the Investment Oversight Committee since 2014; Trustee since 2013	Managing Partner, Residential Dynamics Group LLC (2008-Present); formerly, Managing Director, Citadel Investment Group, L.L.C. (1999-2007).	124	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, 2016, the “Fund Family” consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 71 portfolios advised by the Adviser.

122

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
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).	124	None
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).	124	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 and Chief Executive Officer, Stone Pillar Advisors, Ltd. (2010-Present); formerly, Chairman, President and Chief Executive Officer, Community Financial Shares, Inc. and Community Bank—Wheaton/Glen Ellyn (subsidiary) (2013-2015); 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).	124	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, 2016, the “Fund Family” consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 71 portfolios advised by the Adviser.

123

Trustees and Officers (continued)

The Non-Independent Trustees and the executive officers of the Trust, their term of office and length of time served, their principal business occupations during 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 Trustees are shown below.

Name, Address and Year of Birth of Non-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 Non-Independent Trustee	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. (2007-Present); Director, Invesco Advisers, Inc. (2009-Present); Director, Invesco Finance PLC, 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., IVZ, Inc. and Invesco Asset Management (Bermuda) Ltd.; Manager, Horizon Flight Works LLC; Director and Secretary, IVZ Bahamas Private Limited; formerly, Director, INVESCO Funds Group, Inc., 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.	124	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, 2016, the Fund Complex consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 71 portfolios advised by the Adviser.

124

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
Daniel E. Draper—1968 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	President and Principal Executive Officer	Since 2015	President and Principal Executive Officer, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2015-Present); Chief Executive Officer (2016-Present) and Managing Director (2013-Present), Invesco PowerShares Capital Management LLC; Senior Vice President, Invesco Distributors, Inc. (2014-Present); formerly, 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 (2013-2015) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-2015); 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, 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).
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 (2010-Present); formerly, Vice President of Portfolio Management, Invesco PowerShares Capital Management LLC (2008-2010); 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).
Christopher Joe—1969 Invesco PowerShares Capital Management LLC 11 Greenway Plaza, Suite 1000 Houston, TX 77046-1173	Chief Compliance Officer	Since 2012	Chief Compliance Officer of Invesco PowerShares Capital Management LLC (2015-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); formerly, Chief Compliance Officer, Invesco Investment Advisers, LLC (registered investment adviser) (2010–2013), U.S. Compliance Director, Invesco, Ltd. (2006-2014) and Deputy Chief Compliance Officer of Invesco Advisers, Inc. (2014-2015).

* 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.

125

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	President, Principal Executive Officer and Treasurer, The Invesco Funds (2016-Present); 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, Vice President, Treasurer and Principal Financial Officer, The Invesco Funds (2008-2016); 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.
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 (2010-Present) and Secretary (2015-Present), 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).
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 Services, Invesco PowerShares Capital Management LLC (2013-Present).
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, and 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, 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.); Chief Administrative Officer, North American Retail, Invesco Ltd. (2007-Present); Director, Invesco Corporate Class Inc. (2014-Present); Director, Invesco Global Direct Real Estate Feeder GP Ltd. (2015-Present); Director, Invesco Canada Holdings Inc. (2002-Present); Director, Invesco Financial Services Ltd. / Services Financiers Invesco Ltée and Trimark Investments Ltd./Placements Trimark Ltée (2014-Present); Director, Invesco IP Holdings (Canada) Ltd. (2016-Present); Director, Invesco Global Direct Real Estate GP Ltd. (2015-Present); formerly, Executive Vice President and Chief Financial Officer, Invesco Inc. (2009-2015); Director, Executive Vice President and Chief Financial Officer, Invesco Canada Ltd. (formerly, Invesco Trimark Ltd.) (2000-2011).

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.

126

Board Considerations Regarding Continuation of Investment Advisory Agreement

At a meeting held on April 14, 2016, 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^TM Portfolio

PowerShares Cleantech^TM 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 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 Russell Top 200 Equal Weight Portfolio

PowerShares Russell Top 200 Pure Growth Portfolio

PowerShares Russell Top 200 Pure Value Portfolio

PowerShares Russell Midcap Equal Weight Portfolio

PowerShares Russell Midcap Pure Growth Portfolio

PowerShares Russell Midcap Pure Value Portfolio

PowerShares Russell 2000 Equal Weight Portfolio

PowerShares Russell 2000 Pure Growth Portfolio

PowerShares Russell 2000 Pure Value Portfolio

PowerShares S&P 500^® 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 for each Fund, (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.

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, 2015, 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 certain Funds and their underlying indexes. In reviewing the tracking error reports, 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 correlation and tracking error for

127

Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)

each Fund was within the targeted range set forth in the Trust’s registration statement and 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^TM Portfolio, PowerShares High Yield Equity Dividend Achievers^TM Portfolio, PowerShares International Dividend Achievers^TM Portfolio, PowerShares FTSE RAFI US 1000 Portfolio, PowerShares FTSE RAFI US 1500 Small-Mid Portfolio, PowerShares Russell Top 200 Equal Weight Portfolio, PowerShares Russell Top 200 Pure Growth Portfolio, PowerShares Russell Top 200 Pure Value Portfolio, PowerShares Russell Midcap Equal Weight Portfolio, PowerShares Russell Midcap Pure Growth Portfolio, PowerShares Russell Midcap Pure Value Portfolio, PowerShares Russell 2000 Equal Weight Portfolio, PowerShares Russell 2000 Pure Growth Portfolio, PowerShares Russell 2000 Pure Value Portfolio and PowerShares S&P 500^® Quality Portfolio;

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

● 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 Russell Top 200 Pure Growth Portfolio, PowerShares Russell Top 200 Pure Value Portfolio, PowerShares Russell Midcap Pure Growth Portfolio, PowerShares Russell Midcap Pure Value Portfolio, PowerShares Russell 2000 Pure Growth, Portfolio, PowerShares Russell 2000 Pure Value Portfolio and PowerShares S&P 500^® Quality Portfolio; and

● 0.25% of the Fund’s average daily net assets for each of PowerShares Russell Top 200 Equal Weight Portfolio, PowerShares Russell Midcap Equal Weight Portfolio and PowerShares Russell 2000 Equal Weight Portfolio (The net advisory fees, after giving effect to the Expense Caps below, were 0.01%, -0.05% and -0.39% and, respectively, for PowerShares Russell Top 200 Equal Weight Portfolio, PowerShares Russell Midcap Equal Weight Portfolio and PowerShares Russell 2000 Equal Weight 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, 2017, 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^TM Portfolio, PowerShares High Yield Equity Dividend Achievers^TM Portfolio and PowerShares International Dividend Achievers^TM 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 Russell Top 200 Pure Growth Portfolio, PowerShares Russell Top 200 Pure Value Portfolio, PowerShares Russell Midcap Pure Growth Portfolio, PowerShares Russell Midcap Pure Value Portfolio, PowerShares Russell 2000 Pure Growth Portfolio and PowerShares Russell 2000 Pure 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^® Quality Portfolio;

128

Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)

● 0.25%, excluding interest expenses, offering costs, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses for PowerShares Top 200 Equal Weight Portfolio, PowerShares Russell Midcap Equal Weight Portfolio and PowerShares Russell 2000 Equal Weight 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 Median*		Equal to/Lower than Open-End Active Fund Median
PowerShares Aerospace & Defense Portfolio					X
PowerShares Buyback Achievers Portfolio					X
PowerShares Cleantech Portfolio					X
PowerShares Dividend Achievers Portfolio			X		X
PowerShares DWA Basic Materials Momentum Portfolio					X
PowerShares DWA Consumer Cyclicals Momentum Portfolio					X
PowerShares DWA Consumer Staples Momentum Portfolio					X
PowerShares DWA Energy Momentum Portfolio					X
PowerShares DWA Financial Momentum Portfolio					X
PowerShares DWA Healthcare Momentum Portfolio					X
PowerShares DWA Industrials Momentum Portfolio					X
PowerShares DWA Momentum Portfolio					X
PowerShares DWA NASDAQ Momentum Portfolio					X
PowerShares DWA Technology Momentum Portfolio					X
PowerShares DWA Utilities Momentum Portfolio					X
PowerShares Dynamic Biotechnology & Genome Portfolio					X
PowerShares Dynamic Building & Construction Portfolio					X
PowerShares Dynamic Energy Exploration & Production Portfolio					X
PowerShares Dynamic Food & Beverage Portfolio					X
PowerShares Dynamic Large Cap Growth Portfolio					X
PowerShares Dynamic Large Cap Value Portfolio					X
PowerShares Dynamic Leisure and Entertainment Portfolio					X
PowerShares Dynamic Market Portfolio					X
PowerShares Dynamic Media Portfolio					X
PowerShares Dynamic Networking Portfolio					X

129

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 Dynamic Oil & Gas Services Portfolio						X
PowerShares Dynamic Pharmaceuticals Portfolio						X
PowerShares Dynamic Retail Portfolio						X
PowerShares Dynamic Semiconductors Portfolio						X
PowerShares Dynamic Software Portfolio						X
PowerShares Financial Preferred Portfolio				N/A		X
PowerShares FTSE RAFI US 1000 Portfolio						X
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio		X				X
PowerShares Russell Top 200 Equal Weight Portfolio				X		X
PowerShares Russell Top 200 Pure Growth Portfolio						X
PowerShares Russell Top 200 Pure Value Portfolio						X
PowerShares Russell Midcap Equal Weight Portfolio						X
PowerShares Russell Midcap Pure Growth Portfolio		X		X		X
PowerShares Russell Midcap Pure Value Portfolio		X				X
PowerShares Russell 2000 Equal Weight Portfolio		X				X
PowerShares Russell 2000 Pure Growth Portfolio				X		X
PowerShares Russell 2000 Pure Value Portfolio						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 Quality Portfolio						X
PowerShares Water Resources Portfolio						X
PowerShares WilderHill Clean Energy Portfolio						X
PowerShares WilderHill Progressive Energy Portfolio						X
PowerShares Zacks Micro Cap Portfolio						X

* 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					X
PowerShares Buyback Achievers Portfolio					X
PowerShares Cleantech Portfolio					X
PowerShares Dividend Achievers Portfolio			X		X
PowerShares DWA Basic Materials Momentum Portfolio					X
PowerShares DWA Consumer Cyclicals Momentum Portfolio					X

130

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 Consumer Staples Momentum Portfolio						X
PowerShares DWA Energy Momentum Portfolio						X
PowerShares DWA Financial Momentum Portfolio						X
PowerShares DWA Healthcare Momentum Portfolio						X
PowerShares DWA Industrials Momentum Portfolio						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						X
PowerShares Dynamic Building & Construction Portfolio						X
PowerShares Dynamic Energy Exploration & Production Portfolio						X
PowerShares Dynamic Food & Beverage Portfolio						X
PowerShares Dynamic Large Cap Growth Portfolio						X
PowerShares Dynamic Large Cap Value Portfolio						X
PowerShares Dynamic Leisure and Entertainment Portfolio						X
PowerShares Dynamic Market Portfolio						X
PowerShares Dynamic Media Portfolio						X
PowerShares Dynamic Networking Portfolio						X
PowerShares Dynamic Oil & Gas Services Portfolio						X
PowerShares Dynamic Pharmaceuticals Portfolio						X
PowerShares Dynamic Retail Portfolio						X
PowerShares Dynamic Semiconductors Portfolio						X
PowerShares Dynamic Software Portfolio						X
PowerShares Financial Preferred Portfolio				N/A		X
PowerShares FTSE RAFI US 1000 Portfolio		X		X		X
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio		X		X		X
PowerShares Russell Top 200 Equal Weight Portfolio				X		X
PowerShares Russell Top 200 Pure Growth Portfolio				X		X
PowerShares Russell Top 200 Pure Value Portfolio						X
PowerShares Russell Midcap Equal Weight Portfolio				X		X
PowerShares Russell Midcap Pure Growth Portfolio		X		X		X
PowerShares Russell Midcap Pure Value Portfolio		X				X
PowerShares Russell 2000 Equal Weight Portfolio		X		X		X
PowerShares Russell 2000 Pure Growth Portfolio				X		X
PowerShares Russell 2000 Pure 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 Quality Portfolio		X		X		X
PowerShares Water Resources Portfolio						X

131

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 WilderHill Clean Energy Portfolio				X
PowerShares WilderHill Progressive Energy Portfolio				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 Cap agreed to by the Adviser. 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.

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

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

132

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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.

©2016 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, 2016

2016 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® Quality Portfolio (formerly, 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® Quality Portfolio (SPHQ) (formerly PowerShares S&P 500® High Quality Portfolio)	40
PowerShares Water Resources Portfolio (PHO)	42
PowerShares WilderHill Clean Energy Portfolio (PBW)	43
PowerShares WilderHill Progressive Energy Portfolio (PUW)	44
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	74
Fees and Expenses	75
Tax Information	77
Trustees and Officers	78
Board Considerations Regarding Continuation of Investment Advisory Agreement	83

2

The Market Environment

US Equity

Although the health of individual economic sectors varied dramatically, the US economy overall continued its slow but steady growth during the fiscal year ended April 30, 2016. This modest growth led to recurring debate over whether the US economy could withstand global recessionary forces. Many energy, industrial and materials companies experienced cyclical downturns resembling a mild recession even as many consumer-related companies benefited from continued low interest rates, increased availability of credit and a better employment picture. Another significant downturn in oil prices reduced capital investment but also reduced consumers’ energy and gasoline costs.

In the first half of the reporting period, US equity market performance was greatly affected by expectations of when, and whether, the US Federal Reserve (the “Fed”) might raise interest rates—and the impact the Fed’s action might have. Markets moved lower in the summer of 2015 as a significant downturn in China’s financial markets and weak global economic growth led to increased concern about the sustainability of US economic growth. In the fall, markets rallied and the Fed saw enough economic stabilization to finally raise interest rates.

US stocks began 2016 on a negative note. Together with a sharp decline in oil prices, this suggested a global recession might be imminent and caused investors to become decidedly risk averse; this helped short-term and income-oriented investments, but hurt longer-term and growth-oriented investments. As companies reported earnings and fundamentals that were better than had been feared, stocks rallied sharply in late February and March. Additionally, oil prices strengthened modestly on the back of a weaker US dollar and as Saudi Arabia and Russia considered a freeze on their oil output. Overall, US equity markets were mixed, with the S&P 500 Index, considered representative of the performance of the US stock market, finishing the reporting period modestly higher.

Global Equity

The global economy continued to expand, albeit slowly, during the fiscal year ended April 30, 2016. However, that growth became increasingly uneven across developed and emerging economies. Central bank policies also began to diverge as the Fed followed through on its commitment to normalize monetary policy by raising interest rates—even as the European Central Bank extended its asset purchase program and the Bank of Japan introduced additional quantitative easing.

Global equity markets faced significant headwinds during the fiscal year, although developed markets were generally able to better withstand these headwinds than more fragile emerging markets. As the reporting period began, diverging monetary policy caused the US dollar to strengthen against many other currencies. During

the summer of 2015, China’s surprise devaluation of the renminbi and a significant downturn in its financial markets triggered a massive sell-off in global equity markets, particularly in already-vulnerable emerging markets. In the fall, markets around the world began to regain their footing. However, 2016 began on a sharply negative note, with equity markets falling as the price of oil declined. In February 2016, markets reversed course, bouncing back sharply as economic data and earnings were better than had been feared. In Japan and Europe, central banks signaled their ongoing commitment to very loose monetary policy, but in the US, the Fed indicated that it may delay additional interest rate increases. As a result, the US dollar fell sharply against the euro and Japanese yen; this benefited oil and stock prices generally. For the reporting period as a whole, US equity markets were mixed, while developed international equity markets were down modestly. Although emerging markets rallied strongly toward the end of the reporting period, many—particularly China, Brazil and Russia—were down significantly for the fiscal year.

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^® 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 guidelines and mandated procedures in selecting constituents for inclusion in the Index, the Index Provider 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 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 valuation, a minimum $5 daily sale price and a minimum 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, 2016, on a market price basis, the Fund returned 3.46%. On a net asset value (“NAV”) basis, the Fund returned 3.43%. During the same time period, the Index returned 4.10%. 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 Aerospace & Defense Index (the “Benchmark Index”) returned 7.71%. 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.

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, 2016. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to stock selection within the diversified telecommunication services and software industries.

For the fiscal year ended April 30, 2016, the aerospace & defense industry contributed most significantly to the Fund’s return, followed by the IT services and communications equipment industries, respectively. The software industry detracted most significantly from the Fund’s return, followed by the diversified telecommunication services (no longer held at fiscal year-end) and electronic equipment, instruments & components industries, respectively.

Positions that contributed most significantly to the Fund’s return included Lockheed Martin Corp., an aerospace & defense company (portfolio average weight of 6.65%), and Northrop Grumman Corp., an aerospace & defense company (portfolio average weight of 4.80%). Positions that detracted most significantly from the Fund’s return included FireEye, Inc., a software company (portfolio average weight of 1.75%), and Esterline Technologies Corp., an aerospace & defense company (portfolio average weight of 0.91%).

Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2016
Aerospace & Defense	77.7
IT Services	6.8
Communications Equipment	5.4
Containers & Packaging	3.9
Machinery	2.7
Electronic Equipment, Instruments & Components	2.0
Software	1.1
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, 2016
Security
United Technologies Corp.	6.9
Lockheed Martin Corp.	6.8
Honeywell International, Inc.	6.6
Boeing Co. (The)	6.6
General Dynamics Corp.	6.6
Raytheon Co.	5.8
Northrop Grumman Corp.	5.7
TransDigm Group, Inc.	4.0
Textron, Inc.	4.0
L-3 Communications Holdings, Inc.	3.9
Total	56.9

* Excluding money market fund holdings.

4

PowerShares Aerospace & Defense Portfolio (PPA) (continued)

Growth of a $10,000 Investment

Fund Performance History as of April 30, 2016

	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
SPADE® Defense Index		4.10	%		18.39	%		65.93	%		14.41	%		96.03	%		9.54	%		148.76	%		10.70	%		191.21	%
S&P Composite 1500 Aerospace & Defense Index		7.71			18.88			68.00			15.00			101.14			10.47			170.77			12.21			235.70
Fund
NAV Return		3.43			17.63			62.77			13.66			89.66			8.84			133.18			9.99			172.02
Market Price Return		3.46			17.65			62.86			13.65			89.62			8.83			133.13			9.99			172.14

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, 2017. According to the Fund’s current prospectus, the total gross 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 their respective 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.

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 Index^TM (PO) (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 guidelines and mandated procedures, the Index Provider identifies the securities for inclusion in the Index. The Index Provider 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 sales or operating profits 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, sector 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, 2016, on a market price basis, the Fund returned (0.05)%. On a net asset value (“NAV”) basis, the Fund returned 0.12%. During the same time period, the Index returned (0.75)%. 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 basis return reflects this income. In addition, the Fund’s return was benefitted by revenue generated through the Fund’s securities lending program.

For the fiscal year ended April 30, 2016, the professional services industry contributed most significantly to the Fund’s return, followed by the machinery and life sciences tools & services industries, respectively. The auto components industry detracted

most significantly from the Fund’s return, followed by the independent power and renewable electricity producers and communications equipment industries, respectively.

Positions that contributed most significantly to the Fund’s return included Vestas Wind Systems A/S, an electrical equipment company (portfolio average weight of 3.17%), and SMA Solar Technology AG, a semiconductors & semiconductor equipment company (portfolio average weight of 1.02%). Positions that detracted most significantly from the Fund’s return included BorgWarner Inc., an auto components company (portfolio average weight of 2.69%), and Sensata Technologies Holding NV, an electrical equipment company (portfolio average weight of 2.73%).

Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2016
Electrical Equipment	19.2
Machinery	11.5
Semiconductors & Semiconductor Equipment	9.8
Software	8.1
Professional Services	7.9
Electronic Equipment, Instruments & Components	7.5
Chemicals	6.6
Industrial Conglomerates	6.6
Auto Components	6.0
Independent Power & Renewable Electricity Producers	3.2
Life Sciences Tools & Services	2.8
Aerospace & Defense	2.7
Building Products	2.6
Commercial Services & Supplies	2.0
Communications Equipment	1.4
Construction & Engineering	0.9
Real Estate Investment Trusts	0.9
Money Market Funds Plus Other Assets Less Liabilities	0.3
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2016
Security
ABB Ltd.	3.2
Novozymes A/S, Class B	3.2
Johnson Controls, Inc.	3.1
SGS SA	3.1
Intertek Group PLC	3.1
Schneider Electric SE	3.1
Autodesk, Inc.	3.0
ANSYS, Inc.	3.0
Vestas Wind Systems A/S	3.0
Xylem, Inc.	3.0
Total	30.8

* Excluding money market fund holdings.

6

PowerShares Cleantech^TM Portfolio (PZD) (continued)

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

Fund Performance History as of April 30, 2016

	1 Year			3 Years Average Annualized			3 Years Cumulative			5 Years Average Annualized			5 Years Cumulative			Fund Inception†
Index																Average Annualized			Cumulative
The Cleantech IndexTM (PO)††		(0.75	)%		6.19	%		19.75	%		0.27	%		1.37	%		2.15	%		22.49	%
Fund
NAV Return		0.12			6.99			22.46			1.12			5.71			2.72			29.13
Market Price Return		(0.05	)		7.00			22.50			1.05			5.36			2.68			28.63

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, 2017. 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 their respective 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.

^††  Price only, and does not reflect dividends 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 Index (PO) (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 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 U.S. exchanges that demonstrate powerful relative strength characteristics. The Index Provider evaluates companies quarterly and ranks a universe of eligible securities using a proprietary relative strength methodology. Eligible securities must be one of the 1,000 largest constituents of the NASDAQ by market capitalization and have a minimum three-month average daily dollar trading volume of $1 million. 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. 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, 2016, on a market price basis, the Fund returned (4.29)%. On a net asset value (“NAV”) basis, the Fund returned (4.29)%. During the same time period, the Index returned (4.54)%. 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 basis return reflects this income.

During this same time period, the Russell 3000^® Growth Index (the “Benchmark Index”) returned 0.32%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 1,810 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.

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, 2016. Therefore, a majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to stock selection within the health care and consumer discretionary sectors as well as being underweight in the energy and telecommunication services sectors.

For the fiscal year ended April 30, 2016, the consumer staples sector contributed most significantly to the Fund’s return, followed by the industrials and energy sectors, respectively. The health care sector detracted most significantly from the Fund’s return, followed by the information technology and consumer discretionary sectors, respectively.

Positions that contributed most significantly to the Fund’s return included O’Reilly Automotive, Inc., a consumer discretionary company (portfolio average weight of 2.82%), and Henry Schein, Inc., a health care company (portfolio average weight of 2.34%). Positions that detracted most significantly from the Fund’s return included Jazz Pharmaceuticals PLC, a health care company (no longer held at fiscal year-end), and Anacor Pharmaceuticals, Inc., a health care company (no longer held at fiscal year-end).

Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2016
Consumer Discretionary	20.4
Financials	17.8
Industrials	16.4
Information Technology	12.8
Consumer Staples	11.2
Health Care	9.5
Materials	7.9
Utilities	3.4
Energy	0.6
Money Market Fund Plus Other Assets Less Liabilities	(0.0)
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2016
Security
Priceline Group, Inc. (The)	3.0
O’Reilly Automotive, Inc.	2.8
Henry Schein, Inc.	2.6
Ball Corp.	2.6
MasterCard, Inc., Class A	2.5
Domino’s Pizza, Inc.	2.5
Church & Dwight Co., Inc.	2.3
Medivation, Inc.	2.2
Arch Capital Group Ltd.	2.2
MarketAxess Holdings, Inc.	2.2
Total	24.9

* Excluding money market fund holdings.

8

PowerShares DWA Momentum Portfolio (PDP) (continued)

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

Fund Performance History as of April 30, 2016

	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 (PO)††		(4.54	)%		8.50	%		27.73	%		8.92	%		53.31	%		6.09	%		71.93	%
Russell 3000® Growth Index		0.32			12.16			41.10			11.09			69.18			8.13			104.70
Fund
NAV Return		(4.29	)		8.74			28.59			9.25			55.62			6.27			74.55
Market Price Return		(4.29	)		8.74			28.60			9.23			55.47			6.24			74.14

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. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2017. 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 their respective 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.

^††  Price only, and does not reflect dividends paid by the holdings in the Index.

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 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, at least five unrelated 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 to qualify for 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, 2016, on a market price basis, the Fund returned (8.47)%. On a net asset value (“NAV”) basis, the Fund returned (8.09)%. During the same time period, the Index returned (8.24)%. The Fund, on a NAV basis, outperformed compared to the Index due primarily to the Fund’s inability to hold two securities in the same weightings as represented in the Index. The Fund was restricted from owning one of the securities while being restricted in fully replicating the Index weighting of the other due to the investment activities of one or more of the Adviser’s affiliates, including other subsidiaries of the Adviser’s parent company, Invesco Ltd.

For the fiscal year ended April 30, 2016, the capital markets industry contributed most significantly to the Fund’s return, followed by the machinery and health care providers & services industries, respectively. The industrial conglomerates industry detracted most significantly from the Fund’s return, followed by the internet software & services and diversified financial services industries, respectively.

Positions that contributed most significantly to the Fund’s return included Partners Group Holding AG, a capital markets company (portfolio average weight of 5.04%), and Brait SE, a capital markets company (portfolio average weight of 3.39%). Positions that detracted most significantly from the Fund’s return included Fosun International Ltd., an industrial conglomerates company (portfolio average weight of 4.09%), and Leucadia National Corp., a diversified financial services company (portfolio average weight of 3.96%).

Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2016
Capital Markets	54.6
Diversified Financial Services	22.4
Internet Software & Services	4.1
Industrial Conglomerates	3.7
Machinery	2.2
Health Care Providers & Services	1.2
Food Products	1.0
Money Market Funds Plus Other Assets Less Liabilities	10.8
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2016
Security
Partners Group Holding AG	5.1
Onex Corp.	5.1
3i Group PLC	5.0
Eurazeo SA	4.3
Brait SE	4.0
Fosun International Ltd.	3.8
Ares Capital Corp.	3.1
Leucadia National Corp.	3.0
Wendel SA	3.0
IAC/InterActiveCorp.	2.4
Total	38.8

* Excluding money market fund holdings.

10

PowerShares Global Listed Private Equity Portfolio (PSP) (continued)

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

Fund Performance History as of April 30, 2016

	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††		(8.24	)%		5.35	%		16.93	%		4.87	%		26.86	%		(0.86	)%		(7.88	)%
Red Rocks Global Listed Private Equity Index		(8.24	)		5.35			16.93			4.87			26.86			N/A			N/A
Fund
NAV Return		(8.09	)		4.48			14.06			3.90			21.07			(3.21	)		(26.68	)
Market Price Return		(8.47	)		4.14			12.93			3.64			19.56			(3.28	)		(27.18	)

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, 2017. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 2.11%, including acquired fund fees and expenses of 1.45%, and the net annual operating expense ratio was indicated as 2.09%. 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 Index performance results are based upon a hypothetical investment in their respective constituent securities. Blended-Index and Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Blended-Index and 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 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, 2016.

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 equity 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. (the “Index Provider”) compiles, maintains and calculates the Index. Strictly in accordance with its 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. The Index may include common stocks, ordinary shares, American depositary receipts (“ADRs”), shares of beneficial interest, or limited partnership interests and 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, 2016, on a market price basis, the Fund returned (8.97)%. On a net asset value (“NAV”) basis, the Fund returned (9.04)%. During the same time period, the Index returned (8.62)%. 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, which were offset by revenue generated through the Fund’s securities lending program.

During this same time period, the FTSE/Xinhua China 25 Index (the “Benchmark Index”) returned (31.88)%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 60 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 energy sector during the fiscal year ended April 30, 2016. 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 information technology sector.

For the fiscal year ended April 30, 2016, there were no contributing sectors. The consumer discretionary sector detracted most significantly from the Fund’s return, followed by the information technology and telecommunication services sectors, respectively.

Positions that contributed most significantly to the Fund’s return included Ctrip.com International Ltd. ADR, a consumer discretionary company (portfolio average weight of 8.31%), and New Oriental Education & Technology Group, Inc. ADR, a consumer discretionary company (portfolio average weight of 3.6%). Positions that detracted most significantly from the Fund’s return included Vipshop Holdings Ltd. ADR, a consumer discretionary company (portfolio average weight of 6.26%), and JD.com, Inc. Class A ADR, a consumer discretionary company (portfolio average weight of 6.93%).

Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2016
Information Technology	42.6
Consumer Discretionary	37.4
Telecommunication Services	7.0
Health Care	5.1
Energy	2.9
Financials	2.6
Industrials	2.0
Utilities	0.3
Materials	0.1
Money Market Funds Plus Other Assets Less Liabilities	(0.0)
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2016
Security
Baidu, Inc., Class A ADR	8.2
Ctrip.com International Ltd. ADR	7.8
NetEase, Inc. ADR	7.7
JD.Com, Inc., Class A ADR	7.3
China Mobile Ltd. ADR	6.3
New Oriental Education & Technology Group, Inc. ADR	4.6
Vipshop Holdings Ltd., Class A ADR	4.5
China Biologic Products, Inc.	3.6
58.com, Inc., Class A ADR	3.4
SINA Corp.	3.4
Total	56.8

* Excluding money market fund holdings.

12

PowerShares Golden Dragon China Portfolio (PGJ) (continued)

Growth of a $10,000 Investment

Fund Performance History as of April 30, 2016

	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		(8.62	)%		17.00	%		60.17	%		2.62	%		13.81	%		7.75	%		110.86	%		8.39	%		150.31	%
FTSE/Xinhua China 25 Index		(31.88	)		0.48			1.45			(2.05	)		(9.84	)		5.59			72.27			8.48			152.84
Fund
NAV Return		(9.04	)		16.70			58.92			2.42			12.69			7.29			102.08			7.89			137.47
Market Price Return		(8.97	)		16.79			59.30			2.48			13.05			7.26			101.61			7.86			136.68

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, 2017. 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 their respective 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^SM 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, 2016, on a market price basis, the Fund returned 0.67%. On a net asset value (“NAV”) basis, the Fund returned 0.90%. During the same time period, the Index returned 1.71%. 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 1.21%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 510 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.

The majority of the Fund’s underperformance relative to the Benchmark Index during the period can be attributed to fees and operating expenses incurred during the period, offset by the benefit received from selling covered call options.

For the fiscal year ended April 30, 2016, the consumer staples sector contributed most significantly to the Fund’s return, followed

by the consumer discretionary and industrials sectors, respectively. The energy sector detracted most significantly from the Fund’s return, followed by the financials and health care sectors, respectively.

Positions that contributed most significantly to the Fund’s return included Facebook, Inc. Class A, an information technology company (portfolio average weight of 1.23%), and Amazon.com, Inc., a consumer discretionary company (portfolio average weight of 1.19%). Positions that detracted most significantly from the Fund’s return included Apple, Inc., an information technology company (portfolio average weight of 3.64%), and Kinder Morgan, Inc. Class P, an energy company (portfolio average weight of 0.27%).

Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2016
Information Technology	19.8
Financials	16.2
Health Care	14.7
Consumer Discretionary	13.1
Consumer Staples	10.3
Industrials	10.2
Energy	7.3
Utilities	3.4
Materials	3.0
Telecommunication Services	2.7
Other Assets Less Liabilities	(0.7)
Top Ten Fund Holdings (% of the Fund’s Net Assets) as of April 30, 2016
Security
Apple, Inc.	2.9
Microsoft Corp.	2.2
Exxon Mobil Corp.	2.1
Johnson & Johnson	1.7
General Electric Co.	1.6
Berkshire Hathaway, Inc., Class B	1.5
Facebook, Inc., Class A	1.5
Amazon.com, Inc.	1.4
AT&T, Inc.	1.4
JPMorgan Chase & Co.	1.3
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, 2016

	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 BuyWriteSM Index		1.71	%		5.66	%		17.96	%		6.14	%		34.69	%		3.50	%		33.31	%
S&P 500® Index		1.21			11.26			37.71			11.02			68.63			6.52			69.62
Fund
NAV Return		0.90			4.85			15.27			5.30			29.47			2.65			24.47
Market Price Return		0.67			4.77			14.99			5.25			29.18			2.63			24.20

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 their respective 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® Quality Portfolio (SPHQ)

Effective after the close of markets on March 18, 2016, the Fund’s name changed from PowerShares S&P 500^® High Quality Portfolio to PowerShares S&P 500^® Quality Portfolio (the “Fund”) and the underlying index changed from the S&P 500^® High Quality Rankings Index (the “Previous Index”) to S&P 500^® Quality Index (the “Index”). At that time, the Fund also changed its investment objective and principal investment strategy.

As an index fund, 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 March 18, 2016, of the Previous Index. The Fund generally will invest at least 90% of its total assets in securities that comprise the Index and, through March 18, 2016, comprised the Previous Index.

In selecting constituent securities for the Index, S&P Dow Jones Indices LLC (the “Index Provider”) first calculates the quality score of each security in the S&P 500^® Index based on a composite of the following three factors for each stock: (i) return on equity, calculated as the company’s trailing 12-month earnings per share divided by the company’s latest book value per share; (ii) accruals ratio, computed using the change of the company’s net operating assets over the last year divided by the company’s average net operating assets over the last two years; and (iii) financial leverage ratio, calculated as the company’s latest total debt divided by the company’s book value. The Index Provider then selects the 100 stocks with the highest quality score—that is, stocks of companies that seek to generate higher revenue and cash flow than their counterparts through prudent use of assets and finances, for inclusion in the Index. The Index employs a modified market capitalization-weighted methodology, as the Index Provider weights component securities by multiplying their float-adjusted market capitalization and their quality score. 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, 2016, on a market price basis, the Fund returned 8.43%. On a net asset value (“NAV”) basis, the Fund returned 8.39%. During the same time period, the Blended S&P 500^® Quality Index (a composite of the returns of the Previous Index through March 18, 2016, and of the Index for the remainder of the fiscal year, referred to herein as the “Blended-Index”) returned 8.70%. During the fiscal year, the Fund fully replicated the components of the Blended-Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Blended 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 1.21%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 505 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 upon quality scores as computed by the Index Provider, 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, 2016. The majority of the Fund’s outperformance relative to the Benchmark Index during that period can be attributed to stock selection within and the Fund’s allocation to the consumer staples, health care, and energy sectors.

For the fiscal year ended April 30, 2016, the consumer staples sector contributed most significantly to the Fund’s return, followed by the utilities and health care sectors, respectively. There were no detracting sectors.

Positions that contributed most significantly to the Fund’s return included Hormel Foods Corp., a consumer staples company (no longer held at fiscal year-end), and Airgas, Inc., a materials company (no longer held at fiscal year-end). Positions that detracted most significantly from the Fund’s return included Gap, Inc. (The), a consumer discretionary company (portfolio average weight of 1.09%), and Ralph Lauren Corp., Class A, a consumer discretionary company (no longer held at fiscal year-end).

Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2016
Consumer Discretionary	20.4
Industrials	19.8
Health Care	19.3
Information Technology	17.1
Consumer Staples	16.4
Materials	3.9
Financials	2.6
Energy	0.5
Other Assets Less Liabilities	0.0
Top Ten Fund Holdings (% of the Fund’s Net Assets) as of April 30, 2016
Security
Johnson & Johnson	5.4
Home Depot, Inc. (The)	4.4
Procter & Gamble Co. (The)	4.4
Gilead Sciences, Inc.	4.3
International Business Machines Corp.	4.0
MasterCard, Inc., Class A	3.2
Visa, Inc., Class A	3.2
PepsiCo, Inc.	3.0
Boeing Co. (The)	2.9
3M Co.	2.9
Total	37.7

16

PowerShares S&P 500^® Quality Portfolio (SPHQ) (continued)

Growth of a $10,000 Investment

Fund Performance History as of April 30, 2016

	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-S&P 500® Quality Index†		8.70	%		13.82	%		47.44	%		13.60	%		89.20	%		5.03	%		63.28	%		5.80	%		79.81	%
S&P 500® Quality Index		1.34			N/A			N/A			N/A			N/A			N/A			N/A			N/A			N/A
S&P 500® High Quality Rankings Index		7.79			13.50			46.20			13.41			87.61			N/A			N/A			N/A			N/A
S&P 500® Index		1.21			11.26			37.71			11.02			68.63			6.91			95.01			7.08			103.69
Fund
NAV Return		8.39			13.48			46.15			13.21			85.93			4.87			60.95			5.66			77.24
Market Price Return		8.43			13.48			46.14			13.21			85.92			4.86			60.76			5.61			76.43

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, 2017. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.38%, 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, Index, Previous Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Blended-Index, Index, Previous Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Blended-Index, Index, Previous 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.

^†  The Blended-S&P 500^® Quality Index is comprised of the performance of the Value Line Timeliness Select Index, the Fund’s underlying index from Fund inception through the conversion date, June 29, 2010, followed by the performance of the S&P 500^® High Quality Rankings Index, the Fund’s underlying index for the period June 29, 2010 through March 18, 2016, followed by the performance of the Index for the period March 18, 2016 through April 30, 2016.

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

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 Index^SM (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, 2016, on a market price basis, the Fund returned (8.06)%. On a net asset value (“NAV”) basis, the Fund returned (8.09)%. During the same time period, the Index returned (7.45)%. 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, 2016, the machinery industry contributed most significantly to the Fund’s return, followed by the water utilities and electronic equipment instruments & components industries, respectively. The independent power and renewable electricity producers industry detracted most significantly from the Fund’s return, followed by the semiconductors & semiconductor equipment and building products industries, respectively.

Positions that contributed most significantly to the Fund’s return included Pall Corp., a machinery company (no longer held at

fiscal year-end), and American Water Works Co., Inc., a water utilities company (portfolio average weight of 4.75%). Positions that detracted most significantly from the Fund’s return included TerraForm Power, Inc. Class A, an independent power and renewable electricity producers company (portfolio average weight of 3.18%), and SunEdison, Inc., a semiconductors & semiconductor equipment company (no longer held at fiscal year-end).

Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2016
Machinery	29.2
Water Utilities	17.3
Chemicals	9.4
Independent Power & Renewable Electricity Producers	8.3
Life Sciences Tools & Services	7.7
Industrial Conglomerates	7.4
Construction & Engineering	6.3
Electronic Equipment, Instruments & Components	4.5
Trading Companies & Distributors	4.4
Building Products	2.9
Commercial Services & Supplies	2.5
Money Market Fund Plus Other Assets Less Liabilities	0.1
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2016
Security
Pentair PLC	8.6
American Water Works Co., Inc.	7.9
Ecolab, Inc.	7.9
Waters Corp.	7.7
Roper Technologies, Inc.	7.4
Valmont Industries, Inc.	4.4
Pattern Energy Group, Inc.	4.4
HD Supply Holdings, Inc.	4.4
Xylem, Inc.	4.0
TerraForm Power, Inc., Class A	3.9
Total	60.6

* Excluding money market fund holdings.

18

PowerShares Water Resources Portfolio (PHO) (continued)

Growth of a $10,000 Investment

Fund Performance History as of April 30, 2016

	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-NASDAQ OMX US Water IndexSM†		(7.45	)%		2.64	%		8.14	%		4.04	%		21.90	%		4.21	%		51.06	%		5.84	%		80.53	%
NASDAQ OMX-US Water IndexSM		(7.45	)		2.64			8.14			N/A			N/A			N/A			N/A			N/A			N/A
Fund
NAV Return		(8.09	)		2.01			6.16			3.28			17.49			3.00			34.41			4.65			60.45
Market Price Return		(8.06	)		2.01			6.16			3.28			17.50			2.96			33.91			4.54			58.63

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, 2017. 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 and Index performance results are based upon a hypothetical investment in their respective constituent securities. Blended-Index and Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Blended-Index and 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.

^†  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, 2016.

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

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 significantly contribute 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. 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, 2016, on a market price basis, the Fund returned (27.19)%. On a net asset value (“NAV”) basis, the Fund returned (27.19)%. During the same time period, the Index returned (28.59)%. 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, offset by the fees and operating expenses that the Fund incurred during the period.

During this same time period, the NASDAQ Composite Index (PO) (the “Benchmark Index”) returned (3.36)%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 2,590 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.

Relative to the Benchmark Index, the Fund was most overweight in the semiconductors & semiconductor equipment industry and most underweight in the biotechnology industry during the fiscal year ended April 30, 2016. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to allocation to the independent power and renewable electricity producers industry and the Fund’s allocation to the electrical equipment industry.

For the fiscal year ended April 30, 2016, the electronic equipment instruments & components industry contributed most significantly to the Fund’s return, followed by the electric utilities and aerospace & defense industries, respectively. The independent power and renewable electricity producers industry detracted most significantly from the Fund’s return, followed by the semiconductors & semiconductor equipment and electrical equipment industries, respectively.

Positions that contributed most significantly to the Fund’s return included PowerSecure International, Inc., an electrical equipment company (portfolio average weight of 2.52%), and Universal Display Corp., an electronic equipment, instruments & components company (portfolio average weight of 2.85%). Positions that detracted most significantly from the Fund’s return included SunEdison, Inc., a semiconductors & semiconductor equipment company (portfolio average weight of 1.71%), and Sky Solar Holdings Ltd. ADR, an independent power and renewable electricity producers company (portfolio average weight of 2.24%).

20

PowerShares WilderHill Clean Energy Portfolio (PBW) (continued)

Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2016
Semiconductors & Semiconductor Equipment	27.0
Electrical Equipment	19.4
Independent Power & Renewable Electricity Producers	14.0
Electronic Equipment, Instruments & Components	6.6
Construction & Engineering	5.6
Oil, Gas & Consumable Fuels	5.2
Automobiles	3.8
Software	3.5
Internet Software & Services	3.5
Aerospace & Defense	3.3
Electric Utilities	2.9
Chemicals	2.7
Auto Components	2.5
Money Market Fund Plus Other Assets Less Liabilities	0.0
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2016
Security
SolarCity Corp.	4.7
Tesla Motors, Inc.	3.7
Sunrun, Inc.	3.6
TerraForm Power, Inc., Class A	3.5
OPOWER, Inc.	3.5
Ormat Technologies, Inc.	3.5
Hexcel Corp.	3.3
Ballard Power Systems, Inc.	3.3
Pattern Energy Group, Inc.	3.3
China Ming Yang Wind Power Group Ltd. ADR	3.2
Total	35.6

* Excluding money market fund holdings.

21

PowerShares WilderHill Clean Energy Portfolio (PBW) (continued)

Growth of a $10,000 Investment

Fund Performance History as of April 30, 2016

	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
WilderHill Clean Energy Index		(28.59	)%		(4.30	)%		(12.36	)%		(16.06	)%		(58.32	)%		(15.42	)%		(81.26	)%		(11.06	)%		(72.95	)%
NASDAQ Composite Index (PO)†		(3.36	)		12.78			43.46			10.69			66.18			7.47			105.61			7.83			132.00
Fund
NAV Return		(27.19	)		(2.68	)		(7.82	)		(14.73	)		(54.93	)		(14.49	)		(79.10	)		(10.24	)		(70.04	)
Market Price Return		(27.19	)		(2.68	)		(7.82	)		(14.70	)		(54.85	)		(14.50	)		(79.11	)		(10.23	)		(70.02	)

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, 2017. 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 0.70%. 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 their respective 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.

^†  Price only, and does not reflect dividends paid by the holdings in the Benchmark Index.

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

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 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, 2016, on a market price basis, the Fund returned (20.32)%. On a net asset value (“NAV”) basis, the Fund returned (20.29)%. During the same time period, the Index returned (20.15)%. 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 that the Fund incurred during the period, partially offset by revenue generated through the Fund’s securities lending program.

During this same time period, the NASDAQ Composite Index (PO) (the “Benchmark Index”) returned (3.36)%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 2,590 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 sub-industry as well as being underweight the software & services and retailing industry.

For the fiscal year ended April 30, 2016, the real estate investment trusts (“REIT”) industry contributed most significantly to the Fund’s return, followed by the industrial conglomerates and energy equipment & services industries, respectively. The oil gas & consumable fuels industry detracted most significantly from the Fund’s return, followed by the chemicals and construction & engineering industries, respectively.

Positions that contributed most significantly to the Fund’s return included NRG Yield, Inc., Class C, an independent power and renewable electricity producers company (portfolio average weight of 1.49%), and Acuity Brands, Inc., an electrical equipment company (portfolio average weight of 2.52%). Positions that detracted most significantly from the Fund’s return included Abengoa SA Sponsored ADR Class B, an independent power and renewable electricity producers company (no longer held at fiscal year-end), and LSB Industries, Inc., a chemicals company (no longer held at fiscal year-end).

23

PowerShares WilderHill Progressive Energy Portfolio (PUW) (continued)

Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2016
Oil, Gas & Consumable Fuels	23.7
Electrical Equipment	15.1
Machinery	12.7
Building Products	6.8
Auto Components	5.8
Independent Power & Renewable Electricity Producers	5.5
Construction & Engineering	4.9
Energy Equipment & Services	3.2
Automobiles	2.9
Food & Staples Retailing	2.8
Chemicals	2.6
Real Estate Investment Trusts	2.5
Electronic Equipment, Instruments & Components	2.5
Industrial Conglomerates	2.3
Semiconductors & Semiconductor Equipment	2.3
Commercial Services & Supplies	2.2
Electric Utilities	2.2
Money Market Funds Plus Other Assets Less Liabilities	(0.0)
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2016
Security
Southwestern Energy Co.	4.5
Chesapeake Energy Corp.	4.1
Range Resources Corp.	3.5
General Cable Corp.	3.2
McDermott International, Inc.	3.2
Green Plains, Inc.	3.1
Cosan Ltd., Class A	3.0
Sasol Ltd. ADR	3.0
Tata Motors Ltd. ADR	3.0
NRG Yield, Inc., Class C	2.9
Total	33.5

* Excluding money market fund holdings.

24

PowerShares WilderHill Progressive Energy Portfolio (PUW) (continued)

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

Fund Performance History as of April 30, 2016

	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		(20.15	)%		(5.07	)%		(14.44	)%		(4.40	)%		(20.13	)%		0.43	%		4.15	%
NASDAQ Composite Index (PO)††		(3.36	)		12.78			43.46			10.69			66.18			7.76			103.66
Fund
NAV Return		(20.29	)		(5.37	)		(15.27	)		(4.97	)		(22.52	)		(0.27	)		(2.54	)
Market Price Return		(20.32	)		(5.37	)		(15.27	)		(5.00	)		(22.61	)		(0.27	)		(2.54	)

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, 2017. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.86%, 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 their respective 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.

^†† 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, 2016

Number of Shares			Value
		Common Stocks—100.0%
		Aerospace & Defense—77.7%
	39,660	AAR Corp.	$	953,426
	73,562	Aerojet Rocketdyne Holdings, Inc.(b)		1,332,944
	26,658	Aerovironment, Inc.(b)		769,883
	8,184	American Science & Engineering, Inc.		234,472
	146,604	Boeing Co. (The)		19,762,219
	119,066	BWX Technologies, Inc.		3,975,614
	30,785	Cubic Corp.		1,279,733
	50,923	Curtiss-Wright Corp.		3,899,683
	73,451	DigitalGlobe, Inc.(b)		1,627,674
	41,949	Engility Holdings, Inc.(b)		825,137
	33,818	Esterline Technologies Corp.(b)		2,321,944
	139,973	General Dynamics Corp.		19,669,006
	76,351	HEICO Corp.		4,681,080
	106,008	Hexcel Corp.		4,798,982
	173,584	Honeywell International, Inc.		19,835,444
	53,934	Huntington Ingalls Industries, Inc.		7,808,025
	45,487	KEYW Holding Corp. (The)(b)		313,406
	68,006	Kratos Defense & Security Solutions, Inc.(b)		361,112
	88,480	L-3 Communications Holdings, Inc.		11,637,774
	88,031	Lockheed Martin Corp.		20,456,644
	39,754	Mercury Systems, Inc.(b)		835,629
	41,920	Moog, Inc., Class A(b)		2,048,211
	82,590	Northrop Grumman Corp.		17,035,013
	67,145	Orbital ATK, Inc.		5,841,615
	136,475	Raytheon Co.		17,243,616
	125,782	Rockwell Collins, Inc.		11,092,715
	11,290	Sparton Corp.(b)		242,283
	61,284	TASER International, Inc.(b)		1,119,046
	39,341	Teledyne Technologies, Inc.(b)		3,656,746
	307,078	Textron, Inc.		11,877,777
	52,186	TransDigm Group, Inc.(b)		11,891,624
	56,302	Triumph Group, Inc.		2,037,006
	196,527	United Technologies Corp.		20,511,523
	12,147	Vectrus, Inc.(b)		261,889
				232,238,895
		Communications Equipment—5.4%
	18,447	Comtech Telecommunications Corp.		446,417
	142,275	Harris Corp.		11,383,423
	55,780	ViaSat, Inc.(b)		4,278,326
				16,108,166
		Containers & Packaging—3.9%
	161,031	Ball Corp.		11,494,393
		Electronic Equipment, Instruments & Components—2.0%
	157,005	FLIR Systems, Inc.		4,743,121
	22,587	OSI Systems, Inc.(b)		1,149,452
				5,892,573
		IT Services—6.8%
	169,821	Booz Allen Hamilton Holding Corp.		4,681,965
	27,681	CACI International, Inc., Class A(b)		2,661,528
	185,163	CSRA, Inc.		4,806,832
	82,250	Leidos Holdings, Inc.		4,080,423
	43,014	ManTech International Corp., Class A		1,453,873
	51,893	Science Applications International Corp.		2,754,999
				20,439,620

Number of Shares			Value
		Common Stocks (continued)
		Machinery—2.7%
	83,446	Oshkosh Corp.	$	4,076,337
	70,668	Woodward, Inc.		3,830,912
				7,907,249
		Software—1.1%
	189,408	FireEye, Inc.(b)		3,286,229
		Trading Companies & Distributors—0.4%
	30,840	Kaman Corp.		1,298,056
		Total Common Stocks (Cost $279,891,740)		298,665,181
		Money Market Fund—0.0%
	101,580	Invesco Premier Portfolio—Institutional Class, 0.39%(c) (Cost $101,580)		101,580
		Total Investments (Cost $279,993,320)—100.0%		298,766,761
		Other assets less liabilities—(0.0)%		(31,975	)
		Net Assets—100.0%	$	298,734,786

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. The rate shown is the 7-day SEC standardized yield as of April 30, 2016.

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

26

Schedule of Investments^(a)

PowerShares Cleantech^TM Portfolio (PZD)

April 30, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests—99.7%
		Aerospace & Defense—2.7%
	42,262	Hexcel Corp.	$	1,913,201
		Auto Components—6.0%
	56,304	BorgWarner, Inc.		2,022,440
	54,309	Johnson Controls, Inc.		2,248,392
				4,270,832
		Building Products—2.6%
	69,967	Kingspan Group PLC (Ireland)		1,843,143
		Chemicals—6.6%
	764	Gurit Holding AG (Switzerland)		483,428
	47,002	Novozymes A/S, Class B (Denmark)		2,253,070
	39,745	Umicore SA (Belgium)		1,981,341
				4,717,839
		Commercial Services & Supplies—2.0%
	61,708	CECO Environmental Corp.		407,273
	89,707	Tomra Systems ASA (Norway)		1,041,634
				1,448,907
		Communications Equipment—1.4%
	34,409	CalAmp Corp.(b)		515,103
	169,353	Telit Communications PLC (United Kingdom)		488,108
				1,003,211
		Construction & Engineering—0.9%
	31,859	Aegion Corp.(b)		676,367
		Electrical Equipment—19.2%
	107,327	ABB Ltd. (Switzerland)		2,270,831
	23,124	EnerSys		1,349,748
	98,934	Gamesa Corp. Tecnologica SA (Spain)		1,948,434
	27,525	PowerSecure International, Inc.(b)		515,268
	23,051	Saft Groupe SA (France)		716,535
	33,525	Schneider Electric SE (France)		2,182,533
	52,993	Sensata Technologies Holding NV(b)		1,996,246
	56,646	SGL Carbon SE (Germany)(b)(c)		662,744
	29,645	Vestas Wind Systems A/S (Denmark)		2,121,313
				13,763,652
		Electronic Equipment, Instruments & Components—7.5%
	11,061	Badger Meter, Inc.		788,981
	24,565	Horiba Ltd. (Japan)		961,983
	22,509	Itron, Inc.(b)		925,570
	535,212	Opus Group AB (Sweden)		289,540
	111,294	Pure Technologies Ltd. (Canada)(c)		432,702
	81,660	Trimble Navigation Ltd.(b)		1,955,757
				5,354,533
		Independent Power & Renewable Electricity Producers—3.2%
	9,017,530	Energy Development Corp. (Philippines)		1,132,781
	26,043	Ormat Technologies, Inc.		1,130,266
				2,263,047
		Industrial Conglomerates—6.6%
	38,038	Raven Industries, Inc.		612,031
	11,494	Roper Technologies, Inc.		2,023,979
	20,028	Siemens AG (Germany)		2,090,207
				4,726,217

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Life Sciences Tools & Services—2.8%
	5,463	Eurofins Scientific SE (Luxembourg)	$	2,027,595
		Machinery—11.5%
	22,462	CLARCOR, Inc.		1,320,092
	58,319	Donaldson Co., Inc.		1,905,865
	11,609	Kadant, Inc.		549,686
	9,330	Lindsay Corp.(c)		713,372
	29,332	Woodward, Inc.		1,590,087
	50,609	Xylem, Inc.		2,114,444
				8,193,546
		Professional Services—7.9%
	46,660	Intertek Group PLC (United Kingdom)		2,226,234
	23,216	Mistras Group, Inc.(b)		565,774
	49,913	Ricardo PLC (United Kingdom)		593,715
	1,019	SGS SA (Switzerland)		2,244,245
				5,629,968
		Real Estate Investment Trusts—0.9%
	32,226	Hannon Armstrong Sustainable Infrastructure Capital, Inc. REIT		625,184
		Semiconductors & Semiconductor Equipment—9.8%
	27,665	Advanced Energy Industries, Inc.(b)		894,963
	44,419	Cree, Inc.(b)		1,088,710
	859,000	Lextar Electronics Corp. (Taiwan)		415,478
	120,075	Meyer Burger Technology AG (Switzerland)(b)(c)		551,205
	19,149	Power Integrations, Inc.		923,939
	16,302	SMA Solar Technology AG (Germany)(b)(c)		863,556
	31,878	SolarEdge Technologies, Inc.(b)		854,012
	69,595	SunPower Corp.(b)(c)		1,401,643
				6,993,506
		Software—8.1%
	23,746	ANSYS, Inc.(b)		2,155,424
	36,107	Autodesk, Inc.(b)		2,159,921
	23,819	Fleetmatics Group PLC(b)		863,439
	44,149	Silver Spring Networks, Inc.(b)		620,293
				5,799,077
		Total Common Stocks and Other Equity Interests (Cost $57,477,869)		71,249,825
		Money Market Fund—0.0%
	5,287	Invesco Premier Portfolio—Institutional Class, 0.39%(d) (Cost $5,287)		5,287
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $57,483,156)—99.7%		71,255,112

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

27

PowerShares Cleantech^TM Portfolio (PZD) (continued)

April 30, 2016

Number of Shares			Value
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—4.4%
	3,145,606	Invesco Liquid Assets Portfolio—Institutional Class, 0.44%(d)(e) (Cost $3,145,606)	$	3,145,606
		Total Investments (Cost $60,628,762)—104.1%		74,400,718
		Other assets less liabilities—(4.1)%		(2,934,843	)
		Net Assets—100.0%	$	71,465,875

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, 2016.

^(d) The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of April 30, 2016.

^(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 2J.

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, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—20.4%
	16,621	AutoZone, Inc.(b)	$	12,718,888
	89,177	Carter’s, Inc.		9,512,511
	226,409	CBS Corp., Class B		12,658,527
	37,470	Charter Communications, Inc., Class A(b)		7,952,633
	66,046	Cracker Barrel Old Country Store, Inc.		9,669,795
	211,726	Dollar Tree, Inc.(b)		16,876,679
	299,493	Domino’s Pizza, Inc.		36,202,714
	139,259	Foot Locker, Inc.		8,556,073
	58,932	Home Depot, Inc. (The)		7,890,405
	151,981	O’Reilly Automotive, Inc.(b)		39,922,369
	41,130	Panera Bread Co., Class A(b)		8,821,974
	84,252	Polaris Industries, Inc.		8,246,586
	31,658	Priceline Group, Inc. (The)(b)		42,537,588
	136,983	Six Flags Entertainment Corp.		8,225,829
	341,051	Skechers U.S.A., Inc., Class A(b)		11,271,735
	182,746	Texas Roadhouse, Inc.		7,441,417
	114,172	TJX Cos., Inc. (The)		8,656,521
	215,342	Tractor Supply Co.		20,384,274
	94,591	Visteon Corp.		7,536,065
	74,996	Walt Disney Co. (The)		7,744,087
				292,826,670
		Consumer Staples—11.2%
	412,081	Altria Group, Inc.		25,841,600
	127,891	Brown-Forman Corp., Class B		12,318,461
	362,243	Church & Dwight Co., Inc.		33,579,926
	81,365	Constellation Brands, Inc., Class A		12,697,822
	48,698	Costco Wholesale Corp.		7,213,635
	79,832	Estee Lauder Cos., Inc. (The), Class A		7,653,494
	488,202	Hormel Foods Corp.		18,820,187
	104,291	JM Smucker Co. (The)		13,242,871
	130,499	Monster Beverage Corp.(b)		18,820,566
	384,262	Pilgrim’s Pride Corp.(b)		10,340,490
				160,529,052
		Energy—0.6%
	95,080	Diamondback Energy, Inc.(b)		8,232,026
		Financials—17.8%
	110,549	American Financial Group, Inc.		7,640,041
	454,414	Arch Capital Group Ltd. (Bermuda)(b)		32,031,643
	88,162	Chubb Ltd.		10,390,773
	487,377	CNO Financial Group, Inc.		8,953,116
	87,057	Crown Castle International Corp. REIT		7,563,512
	567,104	CubeSmart REIT		16,791,950
	23,999	Equinix, Inc. REIT		7,928,070
	120,364	Equity LifeStyle Properties, Inc. REIT		8,243,730
	158,817	Extra Space Storage, Inc. REIT		13,491,504
	11,275	Markel Corp.(b)		10,137,465
	251,534	MarketAxess Holdings, Inc.		30,878,314
	74,329	Mid-America Apartment Communities, Inc. REIT		7,114,029
	147,760	Realty Income Corp. REIT		8,747,392
	142,390	RenaissanceRe Holdings Ltd. (Bermuda)		15,792,475
	228,221	RLI Corp.		14,190,782
	55,533	Signature Bank(b)		7,654,113
	523,881	W.R. Berkley Corp.		29,337,336

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	249,121	Western Alliance Bancorp(b)	$	9,112,846
	12,697	White Mountains Insurance Group Ltd.		10,538,510
				256,537,601
		Health Care—9.5%
	122,500	ABIOMED, Inc.(b)		11,899,650
	56,968	Becton, Dickinson and Co.		9,186,660
	225,405	Henry Schein, Inc.(b)		38,025,823
	557,330	Medivation, Inc.(b)		32,213,674
	34,373	Mettler-Toledo International, Inc.(b)		12,303,815
	58,185	Waters Corp.(b)		7,573,360
	349,045	West Pharmaceutical Services, Inc.		24,852,004
				136,054,986
		Industrials—16.4%
	123,999	A.O. Smith Corp.		9,575,203
	298,078	Alaska Air Group, Inc.		20,993,633
	212,715	Copart, Inc.(b)		9,112,711
	164,741	Danaher Corp.		15,938,692
	161,515	Delta Air Lines, Inc.		6,730,330
	122,857	Deluxe Corp.		7,712,962
	70,949	Equifax, Inc.		8,531,617
	54,649	Huntington Ingalls Industries, Inc.		7,911,536
	127,633	IDEX Corp.		10,453,143
	106,896	Lockheed Martin Corp.		24,840,492
	76,230	Northrop Grumman Corp.		15,723,200
	162,806	Old Dominion Freight Line, Inc.(b)		10,753,336
	1,022,668	Rollins, Inc.		27,479,089
	163,218	Roper Technologies, Inc.		28,741,058
	61,790	Snap-on, Inc.		9,841,911
	87,740	Toro Co. (The)		7,585,123
	61,257	TransDigm Group, Inc.(b)		13,958,633
				235,882,669
		Information Technology—12.8%
	348,343	Amphenol Corp., Class A		19,447,990
	343,835	Cadence Design Systems, Inc.(b)		7,973,534
	125,184	Electronic Arts, Inc.(b)		7,742,630
	74,272	Facebook, Inc., Class A(b)		8,732,902
	73,622	Fair Isaac Corp.		7,856,204
	185,997	Fiserv, Inc.(b)		18,175,627
	147,623	Gartner, Inc.(b)		12,868,297
	89,302	IPG Photonics Corp.(b)		7,739,804
	97,237	Jack Henry & Associates, Inc.		7,879,114
	375,781	MasterCard, Inc., Class A		36,446,999
	285,511	Skyworks Solutions, Inc.		19,077,845
	165,618	Syntel, Inc.(b)		7,043,733
	79,768	Ultimate Software Group, Inc. (The)(b)		15,681,591
	102,379	Visa, Inc., Class A		7,907,754
				184,574,024
		Materials—7.9%
	55,306	Air Products & Chemicals, Inc.		8,068,592
	133,839	AptarGroup, Inc.		10,171,764
	514,806	Ball Corp.		36,746,852
	107,692	Ecolab, Inc.		12,382,426
	84,553	International Flavors & Fragrances, Inc.		10,101,547
	177,934	RPM International, Inc.		8,991,005

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

29

PowerShares DWA Momentum Portfolio (PDP) (continued)

April 30, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Materials (continued)
	96,582	Sherwin-Williams Co. (The)	$	27,748,975
				114,211,161
		Utilities—3.4%
	262,248	Aqua America, Inc.		8,302,772
	107,138	Atmos Energy Corp.		7,772,862
	211,040	CMS Energy Corp.		8,585,107
	69,713	NextEra Energy, Inc.		8,196,855
	407,113	UGI Corp.		16,382,227
				49,239,823
		Total Common Stocks and Other Equity Interests (Cost $1,320,375,623)		1,438,088,012
		Money Market Fund—0.1%
	895,085	Invesco Premier Portfolio—Institutional Class, 0.39%(c) (Cost $895,085)		895,085
		Total Investments (Cost $1,321,270,708)—100.1%		1,438,983,097
		Other assets less liabilities—(0.1)%		(960,644	)
		Net Assets—100.0%	$	1,438,022,453

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. The rate shown is the 7-day SEC standardized yield as of April 30, 2016.

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, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests—89.2%
		Capital Markets—54.6%
	2,337,534	3i Group PLC (United Kingdom)	$	16,217,276
	149,746	Alaris Royalty Corp. (Canada)(b)		3,587,640
	499,747	Allied Minds PLC (United Kingdom)(c)		2,812,651
	190,614	Altamir (France)		2,379,684
	474,416	American Capital Ltd.(c)		7,495,773
	458,030	Apollo Global Management LLC, Class A		7,745,287
	576,706	Apollo Investment Corp.		3,356,429
	669,139	Ares Capital Corp.		10,164,221
	95,747	AURELIUS SE & Co. KGaA (Germany)		5,726,642
	204,521	BlackRock Capital Investment Corp.(b)		1,720,022
	1,169,091	Brait SE (South Africa)(c)		13,122,311
	268,937	Bure Equity AB (Sweden)		2,346,614
	335,406	Carlyle Group LP (The)(b)		5,614,696
	72,358	Deutsche Beteiligungs AG (Germany)		2,139,423
	431,697	Fifth Street Finance Corp.		2,339,798
	611,491	FS Investment Corp.(b)		5,692,981
	89,889	Gimv NV (Belgium)		4,993,284
	88,594	Goldman Sachs BDC, Inc.		1,740,872
	139,081	Golub Capital BDC, Inc.(b)		2,440,871
	622,998	GP Investments Ltd., Class A BDR (Brazil)(c)		1,388,332
	275,925	Hercules Capital, Inc.		3,385,600
	828,403	Intermediate Capital Group PLC (United Kingdom)		7,451,064
	1,828,435	IP Group PLC (United Kingdom)(c)		4,604,301
	202,421	JAFCO Co. Ltd. (Japan)		5,883,726
	127,617	Main Street Capital Corp.(b)		3,984,203
	163,302	Medley Capital Corp.(b)		1,110,454
	164,726	New Mountain Finance Corp.		2,062,369
	40,599	Partners Group Holding AG (Switzerland)(b)		16,730,939
	234,579	PennantPark Investment Corp.		1,545,876
	302,445	Princess Private Equity Holding Ltd. (Guernsey)		2,538,284
	784,489	Prospect Capital Corp.(b)		5,867,978
	883,978	Ratos AB, Class B (Sweden)		5,176,634
	82,738	Safeguard Scientifics, Inc.(c)		1,141,784
	119,156	Solar Capital Ltd.		2,100,720
	131,444	TCP Capital Corp.		1,942,742
	203,433	TICC Capital Corp.(b)		1,053,783
	147,450	TPG Specialty Lending, Inc.		2,422,603
	88,819	Triangle Capital Corp.(b)		1,887,404
	8,110,573	Zeder Investments Ltd. (South Africa)		3,957,842
				177,873,113
		Diversified Financial Services—22.4%
	56,996	Ackermans & van Haaren NV (Belgium)		7,422,374
	1,411,543	Better Capital PCC Ltd. (United Kingdom)		1,700,741
	1,145,697	China Merchants China Direct Investments Ltd. (China)		1,822,552
	217,585	Compass Diversified Holdings(b)		3,498,767
	114,535	Electra Private Equity PLC (United Kingdom)		5,944,532
	198,231	Eurazeo SA (France)		13,963,191
	146,192	HgCapital Trust PLC (United Kingdom)		2,505,635
	588,009	Leucadia National Corp.		9,807,990
	266,855	Onex Corp. (Canada)		16,580,971
	83,818	Wendel SA (France)		9,686,491
				72,933,244

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Food Products—1.0%
	53,800	Schouw & Co. (Denmark)	$	3,146,054
		Health Care Providers & Services—1.2%
	156,058	Lifco AB, Class B (Sweden)		4,046,153
		Industrial Conglomerates—3.7%
	8,799,766	Fosun International Ltd. (China)		12,228,830
		Internet Software & Services—4.1%
	171,233	IAC/InterActiveCorp.		7,934,937
	228,859	Rocket Internet SE (Germany)(b)(c)(d)		5,504,594
				13,439,531
		Machinery—2.2%
	1,320,863	Melrose Industries PLC (United Kingdom)		7,223,107
		Total Common Stocks and Other Equity Interests (Cost $315,975,424)		290,890,032
		Money Market Funds—10.2%
	720,000	Invesco Liquid Assets Portfolio—Institutional Class, 0.44%(e)(f)		720,000
	32,406,676	Invesco Premier Portfolio—Institutional Class, 0.39%(e)		32,406,676
		Total Money Market Funds (Cost 33,126,676)		33,126,676
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $349,102,100)—99.4%		324,016,708
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—11.6%
	37,861,974	Invesco Liquid Assets Portfolio—Institutional Class, 0.44%(e)(g) (Cost $37,861,974)		37,861,974
		Total Investments (Cost $386,964,074)—111.0%		361,878,682
		Other assets less liabilities—(11.0)%		(35,954,153	)
		Net Assets—100.0%	$	325,924,529

Investment Abbreviations:

BDR—Brazilian 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, 2016.

^(c) Non-income producing security.

^(d) 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

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, 2016

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, 2016 was $5,504,594, which represented 1.69% of the Fund’s Net Assets.

^(e) The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of April 30, 2016.

^(f) All or a portion of the value was pledged as collateral for swap agreements. See Note 2I and Note 6.

^(g) 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 2J.

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

United Kingdom 14.9 % 

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, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—37.4%
	52,979	500.com Ltd., Class A ADR (China)(b)(c)	$	995,475
	44,445	China Distance Education Holdings Ltd. ADR (China)		600,452
	58,825	China Lodging Group Ltd. ADR (China)		2,121,230
	292,489	Ctrip.com International Ltd. ADR (China)(c)		12,755,445
	104,694	E-Commerce China Dangdang, Inc., Class A ADR (China)(b)(c)		747,515
	465,525	JD.Com, Inc., Class A ADR (China)(c)		11,898,819
	159,759	Jumei International Holding Ltd., Class A ADR (China)(c)		1,011,274
	89,170	Kandi Technologies Group, Inc. (China)(b)(c)		641,132
	192,237	New Oriental Education & Technology Group, Inc. ADR (China)		7,528,001
	197,653	Nord Anglia Education, Inc. (Hong Kong)(b)(c)		4,196,173
	124,324	Qunar Cayman Islands Ltd., Class B ADR (China)(b)(c)		5,073,662
	84,060	TAL Education Group, Class A ADR (China)(c)		4,863,712
	54,120	Tarena International, Inc., Class A ADR (China)		599,650
	59,639	Tuniu Corp., Class A ADR (China)(b)(c)		633,963
	538,643	Vipshop Holdings Ltd., Class A ADR (China)(c)		7,347,091
				61,013,594
		Energy—2.9%
	19,951	China Petroleum & Chemical Corp., H-Shares ADR (China)		1,411,932
	17,995	CNOOC Ltd. ADR (China)		2,221,123
	15,950	PetroChina Co. Ltd., H-Shares ADR (China)(b)		1,165,307
	26,179	Sino Clean Energy, Inc. (China)(c)		0
				4,798,362
		Financials—2.6%
	52,339	China Life Insurance Co. Ltd., H-Shares ADR (China)		602,422
	68,689	CNinsure, Inc. ADR (China)(c)		536,461
	159,204	E-House China Holdings Ltd. ADR (China)		1,052,338
	75,222	Nam Tai Property, Inc. (China)		458,854
	45,617	Noah Holdings Ltd. ADR (China)(b)(c)		1,121,266
	86,120	Xinyuan Real Estate Co. Ltd. ADR (China)		425,433
				4,196,774
		Health Care—5.1%
	50,487	China Biologic Products, Inc. (China)(c)		5,906,979
	85,648	iKang Healthcare Group, Inc., Class A ADR (China)(c)		1,839,719
	105,964	Sinovac Biotech Ltd. (China)(c)		669,692
				8,416,390
		Industrials—2.0%
	47,202	51job, Inc. ADR (China)(b)(c)		1,406,620
	72,521	China Yuchai International Ltd. (Singapore)		743,340
	50,041	eHi Car Services Ltd., Class A ADR (China)(b)(c)		542,444
	37,219	Zhaopin Ltd., Class A ADR (China)(b)(c)		574,289
				3,266,693
		Information Technology—42.6%
	104,163	21Vianet Group, Inc., Class A ADR (China)(c)		2,101,489
	101,759	58.com, Inc., Class A ADR (China)(b)(c)		5,561,129
	86,087	Autohome, Inc., Class A ADR (China)(b)(c)		2,544,732

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	69,015	Baidu, Inc., Class A ADR (China)(c)	$	13,409,614
	51,773	Bitauto Holdings Ltd. ADR (China)(c)		1,292,254
	106,259	Canadian Solar, Inc. (Canada)(b)(c)		1,903,099
	34,954	Changyou.com Ltd., Class A ADR (China)(c)		703,624
	64,622	Cheetah Mobile, Inc., Class A ADR (China)(b)(c)		965,453
	39,670	China Finance Online Co. Ltd. ADR (China)(c)		222,945
	32,828	ChinaCache International Holdings Ltd. ADR (China)(c)		271,488
	13,611	Daqo New Energy Corp. ADR (China)(c)		353,205
	112,018	Hollysys Automation Technologies Ltd. (China)(c)		2,147,385
	76,490	JA Solar Holdings Co. Ltd. ADR (China)(b)(c)		663,168
	42,664	JinkoSolar Holding Co. Ltd. ADR (China)(b)(c)		950,127
	66,841	KongZhong Corp. ADR (China)(c)		485,266
	88,045	Momo, Inc., Class A ADR (China)(b)(c)		1,447,460
	88,914	NetEase, Inc. ADR (China)		12,510,200
	159,323	NQ Mobile, Inc., Class A ADR (China)(b)(c)		812,547
	58,528	Phoenix New Media Ltd., Class A ADR (China)(c)		234,697
	154,969	ReneSola Ltd. ADR (China)(b)(c)		213,857
	137,738	Renren, Inc., Class A ADR (China)(c)		433,875
	110,750	SINA Corp. (China)(c)		5,547,468
	73,414	Sohu.com, Inc. (China)(c)		3,298,491
	553,599	SouFun Holdings Ltd., Class A ADR (China)(b)(c)		3,149,978
	162,751	Trina Solar Ltd. ADR (China)(c)		1,586,822
	89,714	Weibo Corp., Class A ADR (China)(b)(c)		2,195,302
	71,829	YY, Inc., Class A ADR (China)(c)		4,512,298
				69,517,973
		Materials—0.1%
	41,011	Tantech Holdings Ltd. (China)(b)(c)		188,651
		Telecommunication Services—7.0%
	177,688	China Mobile Ltd. ADR (China)		10,220,614
	9,834	China Telecom Corp. Ltd., H-Shares ADR (China)		488,160
	65,803	China Unicom (Hong Kong) Ltd. ADR (China)		769,895
				11,478,669
		Utilities—0.3%
	15,338	Huaneng Power International, Inc., H-Shares ADR (China)		435,446
		Total Common Stocks and Other Equity Interests (Cost $161,023,845)		163,312,552
		Money Market Fund—0.1%
	160,626	Invesco Premier Portfolio—Institutional Class, 0.39%(d) (Cost $160,626)		160,626
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $161,184,471)—100.1%		163,473,178

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, 2016

Number of Shares			Value
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—13.5%
	22,035,328	Invesco Liquid Assets Portfolio—Institutional Class, 0.44%(d)(e) (Cost $22,035,328)	$	22,035,328
		Total Investments (Cost $183,219,799)—113.6%		185,508,506
		Other assets less liabilities—(13.6)%		(22,260,272	)
		Net Assets—100.0%	$	163,248,234

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, 2016.

^(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. The rate shown is the 7-day SEC standardized yield as of April 30, 2016.

^(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 2J.

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

China 95.8 % 

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, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests(b)—100.7%
		Consumer Discretionary—13.1%
	1,221	Advance Auto Parts, Inc.	$	190,598
	6,424	Amazon.com, Inc.(c)		4,237,206
	1,232	AutoNation, Inc.(c)		62,401
	500	AutoZone, Inc.(c)		382,615
	2,724	Bed Bath & Beyond, Inc.(c)		128,627
	4,687	Best Buy Co., Inc.		150,359
	3,641	BorgWarner, Inc.		130,785
	3,700	Cablevision Systems Corp., Class A		123,543
	3,257	CarMax, Inc.(c)		172,458
	7,494	Carnival Corp.		367,581
	7,017	CBS Corp., Class B		392,320
	498	Chipotle Mexican Grill, Inc.(c)		209,643
	4,618	Coach, Inc.		185,967
	40,482	Comcast Corp., Class A		2,459,686
	5,473	D.R. Horton, Inc.		164,518
	1,917	Darden Restaurants, Inc.		119,333
	4,615	Delphi Automotive PLC (United Kingdom)		339,802
	2,493	Discovery Communications, Inc., Class A(c)		68,084
	3,956	Discovery Communications, Inc., Class C(c)		105,942
	4,837	Dollar General Corp.		396,199
	3,909	Dollar Tree, Inc.(c)		311,586
	1,969	Expedia, Inc., Class A		227,951
	2,282	Foot Locker, Inc.		140,206
	64,870	Ford Motor Co.		879,637
	3,764	Gap, Inc. (The)		87,250
	1,955	Garmin Ltd.		83,342
	23,384	General Motors Co.		743,611
	2,491	Genuine Parts Co.		239,061
	4,444	Goodyear Tire & Rubber Co. (The)		128,743
	3,929	H&R Block, Inc.		79,523
	6,519	Hanesbrands, Inc.		189,247
	3,065	Harley-Davidson, Inc.		146,599
	1,184	Harman International Industries, Inc.		90,884
	1,872	Hasbro, Inc.		158,446
	21,095	Home Depot, Inc. (The)		2,824,410
	6,690	Interpublic Group of Cos., Inc. (The)		153,469
	10,784	Johnson Controls, Inc.		446,458
	3,156	Kohl’s Corp.		139,811
	4,242	L Brands, Inc.		332,106
	2,256	Leggett & Platt, Inc.		111,198
	2,998	Lennar Corp., Class A		135,839
	15,226	Lowe’s Cos., Inc.		1,157,481
	5,160	Macy’s, Inc.		204,284
	3,161	Marriott International, Inc., Class A		221,554
	5,659	Mattel, Inc.		175,938
	15,002	McDonald’s Corp.		1,897,603
	2,987	Michael Kors Holdings Ltd.(c)		154,308
	1,055	Mohawk Industries, Inc.(c)		203,225
	7,125	Netflix, Inc.(c)		641,464
	7,599	Newell Brands, Inc.		346,058
	6,319	News Corp., Class A		78,482
	1,794	News Corp., Class B		23,250
	22,457	NIKE, Inc., Class B		1,323,616
	2,138	Nordstrom, Inc.		109,316
	3,983	Omnicom Group, Inc.		330,470
	1,613	O’Reilly Automotive, Inc.(c)		423,703
	824	Priceline Group, Inc. (The)(c)		1,107,176

Number of Shares			Value
		Common Stocks and Other Equity Interests(b) (continued)
		Consumer Discretionary (continued)
	5,287	PulteGroup, Inc.	$	97,228
	1,361	PVH Corp.		130,112
	969	Ralph Lauren Corp., Class A		90,320
	6,738	Ross Stores, Inc.		382,584
	2,818	Royal Caribbean Cruises Ltd.		218,113
	1,582	Scripps Networks Interactive, Inc., Class A		98,638
	1,320	Signet Jewelers Ltd.		143,299
	10,741	Staples, Inc.		109,558
	24,592	Starbucks Corp.		1,382,808
	2,805	Starwood Hotels & Resorts Worldwide, Inc.		229,673
	10,022	Target Corp.		796,749
	3,660	TEGNA, Inc.		85,498
	1,859	Tiffany & Co.		132,640
	4,713	Time Warner Cable, Inc.		999,674
	13,146	Time Warner, Inc.		987,790
	11,140	TJX Cos., Inc. (The)		844,635
	2,222	Tractor Supply Co.		210,335
	1,899	TripAdvisor, Inc., Class A(c)		122,656
	18,622	Twenty-First Century Fox, Inc., Class A		563,502
	7,178	Twenty-First Century Fox, Inc., Class B		216,201
	1,057	Ulta Salon, Cosmetics & Fragrance, Inc.(c)		220,152
	3,025	Under Armour, Inc., Class A(c)		132,919
	3,025	Under Armour, Inc., Class C(c)		123,420
	1,444	Urban Outfitters, Inc.(c)		43,782
	5,652	VF Corp.		356,359
	5,762	Viacom, Inc., Class B		235,666
	24,977	Walt Disney Co. (The)		2,579,125
	1,288	Whirlpool Corp.		224,292
	1,875	Wyndham Worldwide Corp.		133,031
	1,351	Wynn Resorts Ltd.		119,293
	6,802	Yum! Brands, Inc.		541,167
				38,986,191
		Consumer Staples—10.3%
	32,578	Altria Group, Inc.		2,042,966
	9,903	Archer-Daniels-Midland Co.		395,526
	1,670	Brown-Forman Corp., Class B		160,854
	2,993	Campbell Soup Co.		184,698
	2,161	Church & Dwight Co., Inc.		200,325
	2,156	Clorox Co. (The)		269,996
	64,834	Coca-Cola Co. (The)		2,904,563
	3,479	Coca-Cola Enterprises, Inc.		182,578
	14,852	Colgate-Palmolive Co.		1,053,304
	7,220	ConAgra Foods, Inc.		321,723
	2,926	Constellation Brands, Inc., Class A		456,632
	7,317	Costco Wholesale Corp.		1,083,867
	18,280	CVS Health Corp.		1,837,140
	3,115	Dr Pepper Snapple Group, Inc.		283,185
	3,689	Estee Lauder Cos., Inc. (The), Class A		353,664
	9,870	General Mills, Inc.		605,426
	2,387	Hershey Co. (The)		222,254
	4,500	Hormel Foods Corp.		173,475
	1,989	JM Smucker Co. (The)		252,563
	4,198	Kellogg Co.		322,448
	6,004	Kimberly-Clark Corp.		751,641
	9,891	Kraft Heinz Co. (The)		772,190
	16,221	Kroger Co. (The)		574,061

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, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests(b) (continued)
		Consumer Staples (continued)
	1,916	McCormick & Co., Inc.	$	179,683
	3,099	Mead Johnson Nutrition Co.		270,078
	3,062	Molson Coors Brewing Co., Class B		292,819
	26,104	Mondelez International, Inc., Class A		1,121,428
	2,494	Monster Beverage Corp.(c)		359,685
	24,050	PepsiCo, Inc.		2,476,188
	25,778	Philip Morris International, Inc.		2,529,337
	44,131	Procter & Gamble Co. (The)		3,535,776
	13,774	Reynolds American, Inc.		683,190
	8,735	Sysco Corp.		402,421
	4,873	Tyson Foods, Inc., Class A		320,741
	14,359	Walgreens Boots Alliance, Inc.		1,138,382
	26,105	Wal-Mart Stores, Inc.		1,745,641
	5,404	Whole Foods Market, Inc.		157,148
				30,617,596
		Energy—7.3%
	8,458	Anadarko Petroleum Corp.		446,244
	6,298	Apache Corp.		342,611
	7,284	Baker Hughes, Inc.		352,254
	7,622	Cabot Oil & Gas Corp.		178,355
	8,612	Chesapeake Energy Corp.		59,164
	31,332	Chevron Corp.		3,201,504
	1,581	Cimarex Energy Co.		172,139
	6,650	Columbia Pipeline Group, Inc.		170,373
	2,151	Concho Resources, Inc.(c)		249,882
	20,570	ConocoPhillips		983,040
	8,491	Devon Energy Corp.		294,468
	1,070	Diamond Offshore Drilling, Inc.		25,958
	9,151	EOG Resources, Inc.		756,056
	2,657	EQT Corp.		186,256
	69,093	Exxon Mobil Corp.		6,107,821
	3,774	FMC Technologies, Inc.(c)		115,069
	14,279	Halliburton Co.		589,866
	1,798	Helmerich & Payne, Inc.		118,884
	4,406	Hess Corp.		262,686
	30,445	Kinder Morgan, Inc.		540,703
	14,036	Marathon Oil Corp.		197,767
	8,805	Marathon Petroleum Corp.		344,099
	2,692	Murphy Oil Corp.		96,212
	6,255	National Oilwell Varco, Inc.		225,430
	3,299	Newfield Exploration Co.(c)		119,589
	7,138	Noble Energy, Inc.		257,753
	12,712	Occidental Petroleum Corp.		974,375
	3,493	ONEOK, Inc.		126,272
	7,808	Phillips 66		641,115
	2,719	Pioneer Natural Resources Co.		451,626
	2,818	Range Resources Corp.		124,302
	23,134	Schlumberger Ltd.		1,858,586
	6,484	Southwestern Energy Co.(c)		87,080
	11,173	Spectra Energy Corp.		349,380
	1,983	Tesoro Corp.		158,025
	5,698	Transocean Ltd.		63,134
	7,824	Valero Energy Corp.		460,599
	11,354	Williams Cos., Inc. (The)		220,154
				21,908,831

Number of Shares			Value
		Common Stocks and Other Equity Interests(b) (continued)
		Financials—16.2%
	899	Affiliated Managers Group, Inc.(c)	$	153,118
	6,987	Aflac, Inc.		481,893
	6,298	Allstate Corp. (The)		409,685
	13,630	American Express Co.		891,811
	19,127	American International Group, Inc.		1,067,669
	7,054	American Tower Corp. REIT		739,823
	2,808	Ameriprise Financial, Inc.		269,287
	4,497	Aon PLC		472,725
	2,605	Apartment Investment & Management Co., Class A REIT		104,356
	1,076	Assurant, Inc.		90,997
	2,278	AvalonBay Communities, Inc. REIT		402,728
	171,803	Bank of America Corp.		2,501,452
	17,900	Bank of New York Mellon Corp. (The)		720,296
	13,510	BB&T Corp.		477,984
	31,175	Berkshire Hathaway, Inc., Class B(c)		4,535,339
	2,102	BlackRock, Inc.		749,006
	2,553	Boston Properties, Inc. REIT		328,979
	8,774	Capital One Financial Corp.		635,150
	4,834	CBRE Group, Inc., Class A(c)		143,231
	19,996	Charles Schwab Corp. (The)		568,086
	7,669	Chubb Ltd.		903,868
	2,464	Cincinnati Financial Corp.		162,649
	49,055	Citigroup, Inc.		2,270,265
	8,781	Citizens Financial Group, Inc.		200,646
	5,632	CME Group, Inc., Class A		517,637
	2,909	Comerica, Inc.		129,159
	5,553	Crown Castle International Corp. REIT		482,445
	6,888	Discover Financial Services		387,588
	4,704	E*TRADE Financial Corp.(c)		118,447
	1,145	Equinix, Inc. REIT		378,251
	6,073	Equity Residential REIT		413,389
	1,086	Essex Property Trust, Inc. REIT		239,409
	2,081	Extra Space Storage, Inc. REIT		176,781
	1,159	Federal Realty Investment Trust REIT		176,261
	13,035	Fifth Third Bancorp		238,671
	6,214	Franklin Resources, Inc.		232,031
	9,690	General Growth Properties, Inc. REIT		271,611
	6,538	Goldman Sachs Group, Inc. (The)		1,072,951
	6,597	Hartford Financial Services Group, Inc. (The)		292,775
	7,749	HCP, Inc. REIT		262,149
	12,514	Host Hotels & Resorts, Inc. REIT		197,971
	13,230	Huntington Bancshares, Inc.		133,094
	1,976	Intercontinental Exchange, Inc.		474,299
	6,925	Invesco Ltd.(d)		214,744
	3,202	Iron Mountain, Inc. REIT		116,969
	61,070	JPMorgan Chase & Co.		3,859,624
	13,906	KeyCorp		170,905
	6,887	Kimco Realty Corp. REIT		193,662
	1,793	Legg Mason, Inc.		57,573
	5,544	Leucadia National Corp.		92,474
	4,006	Lincoln National Corp.		174,061
	4,457	Loews Corp.		176,854
	2,647	M&T Bank Corp.		313,193
	2,111	Macerich Co. (The) REIT		160,605
	8,669	Marsh & McLennan Cos., Inc.		547,447

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, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests(b) (continued)
		Financials (continued)
	18,248	MetLife, Inc.	$	822,985
	2,818	Moody’s Corp.		269,739
	25,416	Morgan Stanley		687,757
	1,904	Nasdaq, Inc.		117,496
	5,708	Navient Corp.		78,028
	3,583	Northern Trust Corp.		254,680
	5,162	People’s United Financial, Inc.		80,011
	8,341	PNC Financial Services Group, Inc. (The)		732,173
	4,516	Principal Financial Group, Inc.		192,743
	9,723	Progressive Corp. (The)		316,970
	8,730	Prologis, Inc. REIT		396,429
	7,423	Prudential Financial, Inc.		576,322
	2,454	Public Storage REIT		600,764
	4,168	Realty Income Corp. REIT		246,745
	21,428	Regions Financial Corp.		200,995
	4,415	S&P Global, Inc.(e)		471,743
	5,145	Simon Property Group, Inc. REIT		1,035,020
	1,663	SL Green Realty Corp. REIT		174,748
	6,653	State Street Corp.		414,482
	8,400	SunTrust Banks, Inc.		350,616
	13,876	Synchrony Financial(c)		424,189
	4,130	T. Rowe Price Group, Inc.		310,948
	1,880	Torchmark Corp.		108,833
	4,906	Travelers Cos., Inc. (The)		539,169
	27,169	U.S. Bancorp		1,159,845
	4,446	UDR, Inc. REIT		155,254
	3,971	Unum Group		135,848
	5,593	Ventas, Inc. REIT		347,437
	2,950	Vornado Realty Trust REIT		282,403
	76,868	Wells Fargo & Co.		3,841,863
	5,910	Welltower, Inc. REIT		410,272
	13,132	Weyerhaeuser Co. REIT		421,800
	2,298	Willis Towers Watson PLC		287,020
	4,851	XL Group PLC		158,773
	3,400	Zions Bancorporation		93,568
				48,251,741
		Health Care—14.7%
	24,509	Abbott Laboratories		953,400
	26,807	AbbVie, Inc.		1,635,227
	5,815	Aetna, Inc.		652,850
	5,450	Agilent Technologies, Inc.		223,014
	3,747	Alexion Pharmaceuticals, Inc.(c)		521,882
	6,570	Allergan PLC(c)		1,422,799
	3,187	AmerisourceBergen Corp.		271,214
	12,511	Amgen, Inc.		1,980,491
	4,347	Anthem, Inc.		611,927
	11,332	Baxalta, Inc.		475,377
	9,116	Baxter International, Inc.		403,110
	3,524	Becton, Dickinson and Co.		568,280
	3,642	Biogen, Inc.(c)		1,001,514
	22,431	Boston Scientific Corp.(c)		491,688
	27,775	Bristol-Myers Squibb Co.		2,004,800
	1,228	C.R. Bard, Inc.		260,545
	5,477	Cardinal Health, Inc.		429,725
	13,009	Celgene Corp.(c)		1,345,261
	2,825	Centene Corp.(c)		175,037

Number of Shares			Value
		Common Stocks and Other Equity Interests(b) (continued)
		Health Care (continued)
	5,036	Cerner Corp.(c)	$	282,721
	4,252	Cigna Corp.		589,072
	2,760	DaVita HealthCare Partners, Inc.(c)		203,964
	4,012	Dentsply Sirona, Inc.		239,115
	3,572	Edwards Lifesciences Corp.(c)		379,382
	16,197	Eli Lilly & Co.		1,223,359
	3,398	Endo International PLC(c)		91,746
	10,528	Express Scripts Holding Co.(c)		776,229
	22,739	Gilead Sciences, Inc.		2,005,807
	5,089	HCA Holdings, Inc.(c)		410,275
	1,361	Henry Schein, Inc.(c)		229,601
	4,108	Hologic, Inc.(c)		137,988
	2,471	Humana, Inc.		437,540
	2,449	Illumina, Inc.(c)		330,591
	623	Intuitive Surgical, Inc.(c)		390,222
	45,909	Johnson & Johnson		5,145,481
	1,690	Laboratory Corp. of America Holdings(c)		211,791
	1,865	Mallinckrodt PLC(c)		116,600
	3,803	McKesson Corp.		638,219
	23,395	Medtronic PLC		1,851,714
	46,172	Merck & Co., Inc.		2,532,073
	6,862	Mylan NV(c)		286,214
	1,387	Patterson Cos., Inc.		60,126
	1,828	PerkinElmer, Inc.		92,168
	2,439	Perrigo Co. PLC		235,778
	100,634	Pfizer, Inc.		3,291,738
	2,376	Quest Diagnostics, Inc.		178,604
	1,302	Regeneron Pharmaceuticals, Inc.(c)		490,476
	4,719	St. Jude Medical, Inc.		359,588
	5,211	Stryker Corp.		568,051
	6,594	Thermo Fisher Scientific, Inc.		951,185
	15,818	UnitedHealth Group, Inc.		2,082,914
	1,505	Universal Health Services, Inc., Class B		201,188
	1,593	Varian Medical Systems, Inc.(c)		129,320
	4,099	Vertex Pharmaceuticals, Inc.(c)		345,710
	1,349	Waters Corp.(c)		175,586
	2,979	Zimmer Biomet Holdings, Inc.		344,879
	7,609	Zoetis, Inc.		357,851
				43,803,007
		Industrials—10.2%
	10,069	3M Co.		1,685,349
	2,753	ADT Corp. (The)		115,571
	1,603	Allegion PLC		104,916
	10,035	American Airlines Group, Inc.		348,114
	3,922	AMETEK, Inc.		188,609
	10,365	Boeing Co. (The)		1,397,202
	2,384	C.H. Robinson Worldwide, Inc.		169,193
	9,689	Caterpillar, Inc.		753,029
	1,457	Cintas Corp.		130,809
	16,022	CSX Corp.		436,920
	2,699	Cummins, Inc.		315,864
	9,946	Danaher Corp.		962,276
	4,985	Deere & Co.		419,288
	12,954	Delta Air Lines, Inc.		539,793
	2,577	Dover Corp.		169,309
	602	Dun & Bradstreet Corp. (The)		66,467

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, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests(b) (continued)
		Industrials (continued)
	7,636	Eaton Corp. PLC	$	483,130
	10,697	Emerson Electric Co.		584,377
	1,973	Equifax, Inc.		237,253
	3,033	Expeditors International of Washington, Inc.		150,467
	4,803	Fastenal Co.		224,732
	4,261	FedEx Corp.		703,534
	2,167	Flowserve Corp.		105,771
	2,310	Fluor Corp.		126,265
	4,863	General Dynamics Corp.		683,349
	155,244	General Electric Co.		4,773,753
	12,797	Honeywell International, Inc.		1,462,313
	5,444	Illinois Tool Works, Inc.		569,007
	4,270	Ingersoll-Rand PLC		279,856
	1,482	J.B. Hunt Transport Services, Inc.		122,828
	2,039	Jacobs Engineering Group, Inc.(c)		90,899
	1,806	Kansas City Southern		171,119
	1,298	L-3 Communications Holdings, Inc.		170,726
	4,370	Lockheed Martin Corp.		1,015,501
	5,555	Masco Corp.		170,594
	6,018	Nielsen Holdings PLC		313,779
	4,961	Norfolk Southern Corp.		447,036
	3,012	Northrop Grumman Corp.		621,255
	5,846	PACCAR, Inc.		344,388
	2,245	Parker-Hannifin Corp.		260,465
	3,039	Pentair PLC (United Kingdom)		176,505
	3,186	Pitney Bowes, Inc.		66,810
	2,659	Quanta Services, Inc.(c)		63,072
	4,974	Raytheon Co.		628,465
	3,956	Republic Services, Inc.		186,209
	2,186	Robert Half International, Inc.		83,746
	2,191	Rockwell Automation, Inc.		248,613
	2,186	Rockwell Collins, Inc.		192,783
	1,680	Roper Technologies, Inc.		295,831
	891	Ryder System, Inc.		61,408
	969	Snap-on, Inc.		154,342
	10,618	Southwest Airlines Co.		473,669
	2,532	Stanley Black & Decker, Inc.		283,381
	1,413	Stericycle, Inc.(c)		135,026
	4,515	Textron, Inc.		174,640
	7,066	Tyco International PLC		272,182
	14,084	Union Pacific Corp.		1,228,547
	5,984	United Continental Holdings, Inc.(c)		274,127
	11,485	United Parcel Service, Inc., Class B		1,206,729
	1,515	United Rentals, Inc.(c)		101,399
	12,944	United Technologies Corp.		1,350,965
	2,570	Verisk Analytics, Inc.(c)		199,381
	947	W.W. Grainger, Inc.		222,090
	6,892	Waste Management, Inc.		405,181
	2,971	Xylem, Inc.		124,128
				30,524,335
		Information Technology—19.8%
	10,445	Accenture PLC, Class A		1,179,449
	8,436	Activision Blizzard, Inc.		290,789
	8,293	Adobe Systems, Inc.(c)		781,366
	2,942	Akamai Technologies, Inc.(c)		150,013
	989	Alliance Data Systems Corp.(c)		201,074

Number of Shares			Value
		Common Stocks and Other Equity Interests(b) (continued)
		Information Technology (continued)
	4,865	Alphabet, Inc., Class A(c)	$	3,443,836
	4,943	Alphabet, Inc., Class C(c)		3,425,548
	5,129	Amphenol Corp., Class A		286,352
	5,155	Analog Devices, Inc.		290,330
	92,251	Apple, Inc.		8,647,609
	18,815	Applied Materials, Inc.		385,143
	3,747	Autodesk, Inc.(c)		224,146
	7,611	Automatic Data Processing, Inc.		673,117
	6,170	Broadcom Ltd. (Singapore)		899,277
	4,922	CA, Inc.		145,986
	83,724	Cisco Systems, Inc.		2,301,573
	2,560	Citrix Systems, Inc.(c)		209,510
	10,131	Cognizant Technology Solutions Corp., Class A(c)		591,346
	18,518	Corning, Inc.		345,731
	2,266	CSRA, Inc.		58,825
	18,039	eBay, Inc.(c)		440,693
	5,142	Electronic Arts, Inc.(c)		318,033
	32,392	EMC Corp.		845,755
	1,143	F5 Networks, Inc.(c)		119,729
	38,187	Facebook, Inc., Class A(c)		4,490,027
	4,591	Fidelity National Information Services, Inc.		302,088
	1,273	First Solar, Inc.(c)		71,084
	3,707	Fiserv, Inc.(c)		362,248
	2,287	FLIR Systems, Inc.		69,090
	2,588	Global Payments, Inc.		186,802
	2,074	Harris Corp.		165,941
	28,565	Hewlett Packard Enterprise Co.		475,893
	28,729	HP, Inc.		352,505
	78,601	Intel Corp.		2,380,038
	14,710	International Business Machines Corp.		2,146,777
	4,269	Intuit, Inc.		430,699
	5,857	Juniper Networks, Inc.		137,054
	2,588	KLA-Tencor Corp.		181,005
	2,644	Lam Research Corp.		202,002
	3,979	Linear Technology Corp.		176,986
	16,312	MasterCard, Inc., Class A		1,582,101
	3,554	Microchip Technology, Inc.		172,689
	17,261	Micron Technology, Inc.(c)		185,556
	131,597	Microsoft Corp.		6,562,742
	2,640	Motorola Solutions, Inc.		198,502
	4,814	NetApp, Inc.		113,803
	8,504	NVIDIA Corp.		302,147
	52,425	Oracle Corp.		2,089,660
	5,347	Paychex, Inc.		278,686
	18,514	PayPal Holdings, Inc.(c)		725,379
	2,150	Qorvo, Inc.(c)		96,814
	24,871	QUALCOMM, Inc.		1,256,483
	3,042	Red Hat, Inc.(c)		223,192
	10,491	salesforce.com, inc.(c)		795,218
	3,348	SanDisk Corp.		251,535
	4,931	Seagate Technology PLC		107,348
	3,188	Skyworks Solutions, Inc.		213,022
	10,145	Symantec Corp.		168,864
	6,150	TE Connectivity Ltd. (Switzerland)		365,802
	2,209	Teradata Corp.(c)		55,888

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, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests(b) (continued)
		Information Technology (continued)
	16,727	Texas Instruments, Inc.	$	954,108
	2,800	Total System Services, Inc.		143,192
	1,607	VeriSign, Inc.(c)		138,845
	31,931	Visa, Inc., Class A		2,466,350
	3,875	Western Digital Corp.		158,352
	8,352	Western Union Co. (The)		167,040
	15,842	Xerox Corp.		152,083
	4,248	Xilinx, Inc.		183,004
	14,496	Yahoo!, Inc.(c)		530,554
				59,024,428
		Materials—3.0%
	3,229	Air Products & Chemicals, Inc.		471,079
	1,082	Airgas, Inc.		154,120
	21,874	Alcoa, Inc.		244,333
	1,488	Avery Dennison Corp.		108,044
	2,359	Ball Corp.		168,385
	3,880	CF Industries Holdings, Inc.		128,312
	18,590	Dow Chemical Co. (The)		978,020
	14,502	E.I. du Pont de Nemours & Co.		955,827
	2,463	Eastman Chemical Co.		188,124
	4,433	Ecolab, Inc.		509,706
	2,220	FMC Corp.		96,037
	20,829	Freeport-McMoRan, Inc.		291,606
	1,326	International Flavors & Fragrances, Inc.		158,417
	6,843	International Paper Co.		296,097
	5,750	LyondellBasell Industries NV, Class A		475,352
	1,068	Martin Marietta Materials, Inc.		180,738
	7,327	Monsanto Co.		686,393
	5,865	Mosaic Co. (The)		164,161
	8,804	Newmont Mining Corp.		307,876
	5,290	Nucor Corp.		263,336
	2,679	Owens-Illinois, Inc.(c)		49,454
	4,440	PPG Industries, Inc.		490,132
	4,741	Praxair, Inc.		556,878
	3,262	Sealed Air Corp.		154,488
	1,308	Sherwin-Williams Co. (The)		375,801
	2,212	Vulcan Materials Co.		238,078
	4,227	WestRock Co.		176,900
				8,867,694
		Telecommunication Services—2.7%
	102,348	AT&T, Inc.		3,973,149
	9,047	CenturyLink, Inc.		280,005
	19,439	Frontier Communications Corp.		108,081
	4,813	Level 3 Communications, Inc.(c)		251,527
	67,785	Verizon Communications, Inc.		3,452,968
				8,065,730
		Utilities—3.4%
	10,980	AES Corp. (The)		122,537
	2,002	AGL Resources, Inc.		131,852
	4,035	Ameren Corp.		193,680
	8,169	American Electric Power Co., Inc.		518,731
	2,963	American Water Works Co., Inc.		215,588
	7,162	CenterPoint Energy, Inc.		153,625
	4,609	CMS Energy Corp.		187,494

Number of Shares			Value
		Common Stocks and Other Equity Interests(b) (continued)
		Utilities (continued)
	4,882	Consolidated Edison, Inc.	$	364,197
	9,923	Dominion Resources, Inc.		709,197
	2,988	DTE Energy Co.		266,410
	11,455	Duke Energy Corp.		902,425
	5,422	Edison International		383,390
	2,971	Entergy Corp.		223,360
	5,278	Eversource Energy		297,890
	15,308	Exelon Corp.		537,158
	7,049	FirstEnergy Corp.		229,727
	7,665	NextEra Energy, Inc.		901,251
	5,322	NiSource, Inc.		120,863
	5,239	NRG Energy, Inc.		79,109
	8,199	PG&E Corp.		477,182
	1,850	Pinnacle West Capital Corp.		134,402
	11,214	PPL Corp.		422,095
	8,424	Public Service Enterprise Group, Inc.		388,599
	2,379	SCANA Corp.		163,413
	3,926	Sempra Energy		405,752
	15,187	Southern Co. (The)		760,869
	3,921	TECO Energy, Inc.		108,886
	5,252	WEC Energy Group, Inc.		305,719
	8,443	Xcel Energy, Inc.		337,973
				10,043,374
		Total Investments (Cost $293,352,145)—100.7%		300,092,927
		Other assets less liabilities—(0.7)%		(2,197,759	)
		Net Assets—100.0%	$	297,895,168

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) Except as otherwise noted, a portion of the securities in the Fund are subject to call options written. See Note 2H 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.

^(e)  Security not subject to call options written.

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

39

Schedule of Investments^(a)

PowerShares S&P 500^® Quality Portfolio (SPHQ)

April 30, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—20.4%
	37,584	Bed Bath & Beyond, Inc.(b)	$	1,774,716
	93,082	CBS Corp., Class B		5,204,215
	24,901	Darden Restaurants, Inc.		1,550,087
	64,293	Delphi Automotive PLC (United Kingdom)		4,733,894
	39,574	Dollar Tree, Inc.(b)		3,154,443
	21,152	Expedia, Inc., Class A		2,448,767
	55,202	Gap, Inc. (The)		1,279,582
	27,427	Garmin Ltd.		1,169,213
	30,082	Genuine Parts Co.		2,886,970
	298,505	Home Depot, Inc. (The)		39,966,834
	30,161	Leggett & Platt, Inc.		1,486,636
	177,517	McDonald’s Corp.		22,454,125
	279,102	NIKE, Inc., Class B		16,450,272
	21,666	O’Reilly Automotive, Inc.(b)		5,691,225
	80,178	Ross Stores, Inc.		4,552,507
	153,233	Staples, Inc.		1,562,977
	279,934	Starbucks Corp.		15,740,689
	37,733	Starwood Hotels & Resorts Worldwide, Inc.		3,089,578
	129,414	Target Corp.		10,288,413
	22,076	Tiffany & Co.		1,575,123
	157,378	TJX Cos., Inc. (The)		11,932,400
	26,029	Tractor Supply Co.		2,463,905
	311,332	Twenty-First Century Fox, Inc., Class A		9,420,906
	25,918	Urban Outfitters, Inc.(b)		785,834
	72,981	VF Corp.		4,601,452
	86,824	Yum! Brands, Inc.		6,907,717
				183,172,480
		Consumer Staples—16.4%
	383,714	Altria Group, Inc.		24,062,705
	20,606	Brown-Forman Corp., Class B		1,984,770
	167,852	Colgate-Palmolive Co.		11,904,064
	33,876	Dr Pepper Snapple Group, Inc.		3,079,667
	118,460	Kraft Heinz Co. (The)		9,248,172
	51,911	Mead Johnson Nutrition Co.		4,524,044
	345,621	Mondelez International, Inc., Class A		14,847,878
	257,239	PepsiCo, Inc.		26,485,327
	494,318	Procter & Gamble Co. (The)		39,604,758
	200,146	Reynolds American, Inc.		9,927,242
	65,498	Whole Foods Market, Inc.		1,904,682
				147,573,309
		Energy—0.5%
	48,379	FMC Technologies, Inc.(b)		1,475,076
	78,423	National Oilwell Varco, Inc.		2,826,365
				4,301,441
		Financials—2.6%
	285,236	Charles Schwab Corp. (The)		8,103,555
	87,585	Franklin Resources, Inc.		3,270,424
	29,141	Public Storage REIT		7,134,008
	103,778	Weyerhaeuser Co. REIT		3,333,349
	59,846	XL Group PLC		1,958,760
				23,800,096
		Health Care—19.3%
	284,114	Abbott Laboratories		11,052,035
	320,581	AbbVie, Inc.		19,555,441

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Health Care (continued)
	39,480	Biogen, Inc.(b)	$	10,856,605
	316,751	Bristol-Myers Squibb Co.		22,863,087
	57,409	Cardinal Health, Inc.		4,504,310
	57,840	Cerner Corp.(b)		3,247,138
	27,952	Dentsply Sirona, Inc.		1,665,939
	434,911	Gilead Sciences, Inc.		38,363,499
	6,835	Intuitive Surgical, Inc.(b)		4,281,171
	434,062	Johnson & Johnson		48,649,669
	48,220	McKesson Corp.		8,092,280
				173,131,174
		Industrials—19.8%
	155,186	3M Co.		25,975,033
	193,563	Boeing Co. (The)		26,092,292
	17,030	Cintas Corp.		1,528,953
	169,070	Delta Air Lines, Inc.		7,045,147
	34,607	Dover Corp.		2,273,680
	145,540	Emerson Electric Co.		7,950,850
	54,788	Fastenal Co.		2,563,531
	27,049	Flowserve Corp.		1,320,262
	71,725	General Dynamics Corp.		10,078,797
	151,954	Honeywell International, Inc.		17,363,784
	72,596	Illinois Tool Works, Inc.		7,587,734
	79,810	Lockheed Martin Corp.		18,546,248
	43,048	Northrop Grumman Corp.		8,879,080
	36,440	Pentair PLC (United Kingdom)		2,116,435
	44,691	Pitney Bowes, Inc.		937,170
	57,646	Raytheon Co.		7,283,572
	31,021	Robert Half International, Inc.		1,188,415
	32,787	Rockwell Automation, Inc.		3,720,341
	143,681	Southwest Airlines Co.		6,409,609
	153,385	United Parcel Service, Inc., Class B		16,116,162
	12,166	W.W. Grainger, Inc.		2,853,170
				177,830,265
		Information Technology—17.1%
	233,251	Applied Materials, Inc.		4,774,648
	128,726	Automatic Data Processing, Inc.		11,384,528
	34,332	CSRA, Inc.		891,259
	220,247	eBay, Inc.(b)		5,380,634
	18,532	F5 Networks, Inc.(b)		1,941,227
	390,168	HP, Inc.		4,787,361
	247,047	International Business Machines Corp.		36,054,039
	69,052	Intuit, Inc.		6,966,656
	73,395	Juniper Networks, Inc.		1,717,443
	30,239	KLA-Tencor Corp.		2,114,916
	45,293	Linear Technology Corp.		2,014,633
	299,860	MasterCard, Inc., Class A		29,083,421
	77,316	Paychex, Inc.		4,029,710
	211,362	Texas Instruments, Inc.		12,056,089
	369,055	Visa, Inc., Class A		28,505,808
	48,789	Xilinx, Inc.		2,101,830
				153,804,202
		Materials—3.9%
	18,727	Avery Dennison Corp.		1,359,767
	163,818	E.I. du Pont de Nemours & Co.		10,797,244

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

40

PowerShares S&P 500^® Quality Portfolio (SPHQ) (continued)

April 30, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Materials (continued)
	15,472	International Flavors & Fragrances, Inc.	$	1,848,440
	88,501	LyondellBasell Industries NV, Class A		7,316,378
	80,722	Monsanto Co.		7,562,037
	22,764	Sherwin-Williams Co. (The)		6,540,325
				35,424,191
		Total Investments (Cost $872,342,145)—100.0%		899,037,158
		Other assets less liabilities—0.0%		40,732
		Net Assets—100.0%	$	899,077,890

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, 2016

Number of Shares			Value
		Common Stocks—99.9%
		Building Products—2.9%
	849,908	Advanced Drainage Systems, Inc.	$	19,649,873
		Chemicals—9.4%
	620,262	Calgon Carbon Corp.		10,166,094
	469,864	Ecolab, Inc.		54,024,963
				64,191,057
		Commercial Services & Supplies—2.5%
	588,984	Tetra Tech, Inc.		17,316,130
		Construction & Engineering—6.3%
	426,127	Aegion Corp.(b)		9,046,676
	287,647	Layne Christensen Co.(b)		2,557,182
	145,829	Northwest Pipe Co.(b)		1,573,495
	213,110	Valmont Industries, Inc.		29,916,382
				43,093,735
		Electronic Equipment, Instruments & Components—4.5%
	152,909	Badger Meter, Inc.		10,906,999
	486,021	Itron, Inc.(b)		19,985,183
				30,892,182
		Independent Power & Renewable Electricity Producers—8.3%
	1,418,855	Pattern Energy Group, Inc.		29,795,955
	2,499,187	TerraForm Power, Inc., Class A(b)		26,691,317
				56,487,272
		Industrial Conglomerates—7.4%
	286,933	Roper Technologies, Inc.		50,526,032
		Life Sciences Tools & Services—7.7%
	400,504	Waters Corp.(b)		52,129,601
		Machinery—29.2%
	645,096	Energy Recovery, Inc.(b)		7,844,367
	464,316	Franklin Electric Co., Inc.		14,667,742
	81,524	Gorman-Rupp Co. (The)		2,306,314
	260,280	Lindsay Corp.		19,901,009
	2,365,477	Mueller Water Products, Inc., Class A		25,428,878
	1,009,940	Pentair PLC (United Kingdom)		58,657,315
	302,288	Toro Co. (The)		26,132,798
	303,049	Watts Water Technologies, Inc., Class A		16,931,348
	644,004	Xylem, Inc.		26,906,487
				198,776,258
		Trading Companies & Distributors—4.4%
	866,932	HD Supply Holdings, Inc.(b)		29,718,429
		Water Utilities—17.3%
	383,543	American States Water Co.		15,989,908
	743,358	American Water Works Co., Inc.		54,086,728
	788,095	Aqua America, Inc.		24,951,088
	250,454	Cadiz, Inc.(b)		1,625,446
	447,626	California Water Service Group		12,502,194
	69,525	Connecticut Water Service, Inc.		3,269,065
	167,970	Consolidated Water Co. Ltd. (Cayman Islands)		2,333,103
	77,620	Middlesex Water Co.		2,839,340
				117,596,872
		Total Common Stocks (Cost $551,660,731)		680,377,441

Number of Shares			Value
		Money Market Fund—0.1%
	350,128	Invesco Premier Portfolio—Institutional Class, 0.39%(c) (Cost $350,128)	$	350,128
		Total Investments (Cost $552,010,859)—100.0%		680,727,569
		Other assets less liabilities—(0.0)%		(264,861	)
		Net Assets—100.0%	$	680,462,708

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. The rate shown is the 7-day SEC standardized yield as of April 30, 2016.

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, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Aerospace & Defense—3.3%
	74,117	Hexcel Corp.	$	3,355,277
		Auto Components—2.5%
	69,908	Gentherm, Inc.(b)		2,568,420
		Automobiles—3.8%
	15,716	Tesla Motors, Inc.(b)(c)		3,783,784
		Chemicals—2.7%
	18,517	Air Products & Chemicals, Inc.		2,701,445
		Construction & Engineering—5.6%
	592,440	Ameresco, Inc., Class A(b)		2,648,207
	127,937	Quanta Services, Inc.(b)		3,034,665
				5,682,872
		Electric Utilities—2.9%
	67,048	ITC Holdings Corp.		2,954,805
		Electrical Equipment—19.4%
	2,088,395	Ballard Power Systems, Inc. (Canada)(b)(c)		3,341,432
	1,370,695	China Ming Yang Wind Power Group Ltd. ADR (China)(b)(c)		3,289,668
	67,530	Energy Focus, Inc.(b)(c)		526,734
	221,116	Enphase Energy, Inc.(b)(c)		555,001
	65,323	Hydrogenics Corp. (Canada)(b)(c)		616,649
	1,435,102	Plug Power, Inc.(b)(c)		2,956,310
	156,443	SolarCity Corp.(b)(c)		4,743,352
	458,341	Sunrun, Inc.(b)(c)		3,611,727
				19,640,873
		Electronic Equipment, Instruments & Components—6.6%
	69,852	Itron, Inc.(b)		2,872,314
	84,843	Maxwell Technologies, Inc.(b)		544,692
	55,805	Universal Display Corp.(b)		3,253,990
				6,670,996
		Independent Power & Renewable Electricity Producers—14.0%
	81,128	Ormat Technologies, Inc.		3,520,955
	157,485	Pattern Energy Group, Inc.		3,307,185
	216,330	Sky Solar Holdings Ltd. ADR (Hong Kong)(b)(c)		672,786
	1,069,744	TerraForm Global, Inc., Class A(c)		3,112,955
	335,064	TerraForm Power, Inc., Class A(b)(c)		3,578,484
				14,192,365
		Internet Software & Services—3.5%
	449,854	OPOWER,Inc.(b)(c)		3,553,847
		Oil, Gas & Consumable Fuels—5.2%
	2,317,557	Amyris, Inc.(b)(c)		2,363,908
	301,833	Renewable Energy Group, Inc.(b)		2,933,817
				5,297,725
		Semiconductors & Semiconductor Equipment—27.0%
	84,139	Advanced Energy Industries, Inc.(b)		2,721,897
	174,625	Canadian Solar, Inc. (Canada)(b)(c)		3,127,534
	98,570	Cree, Inc.(b)		2,415,951
	28,409	Daqo New Energy Corp. ADR (China)(b)		737,214
	48,014	First Solar, Inc.(b)		2,681,102
	205,776	Hanwha Q CELLS Co. Ltd. ADR (South Korea)(b)		2,646,279
	375,253	JA Solar Holdings Co. Ltd. ADR (China)(b)(c)		3,253,443

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Semiconductors & Semiconductor Equipment (continued)
	349,456	ReneSola Ltd. ADR (China)(b)	$	482,249
	116,166	SolarEdge Technologies, Inc.(b)(c)		3,112,087
	149,792	SunPower Corp.(b)(c)		3,016,811
	317,131	Trina Solar Ltd. ADR (China)(b)		3,092,027
				27,286,594
		Software—3.5%
	70,782	EnerNOC, Inc.(b)		482,733
	218,847	Silver Spring Networks, Inc.(b)		3,074,801
				3,557,534
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $106,747,646)—100.0%		101,246,537
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—26.7%
	27,046,765	Invesco Liquid Assets Portfolio—Institutional Class, 0.44%(d)(e) (Cost $27,046,765)		27,046,765
		Total Investments (Cost $133,794,411)—126.7%		128,293,302
		Other assets less liabilities—(26.7)%		(27,038,215	)
		Net Assets—100.0%	$	101,255,087

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) All or a portion of this security was out on loan at April 30, 2016.

^(d) The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of April 30, 2016.

^(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 2J.

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

China 10.7 % 

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

43

Schedule of Investments^(a)

PowerShares WilderHill Progressive Energy Portfolio (PUW)

April 30, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Auto Components—5.8%
	14,269	Johnson Controls, Inc.	$	590,737
	14,868	Kandi Technologies Group, Inc. (China)(b)(c)		106,901
	12,555	Tenneco, Inc.(c)		669,181
				1,366,819
		Automobiles—2.9%
	22,788	Tata Motors Ltd. ADR (India)(c)		692,299
		Building Products—6.8%
	7,176	A.O. Smith Corp.		554,131
	12,400	Apogee Enterprises, Inc.		513,856
	11,638	Owens Corning		536,162
				1,604,149
		Chemicals—2.6%
	17,765	Methanex Corp. (Canada)		621,064
		Commercial Services & Supplies—2.2%
	31,653	Covanta Holding Corp.		514,678
		Construction & Engineering—4.9%
	13,966	Chicago Bridge & Iron Co. NV		562,131
	25,833	MasTec, Inc.(c)		585,376
				1,147,507
		Electric Utilities—2.2%
	265,446	Cia Energetica de Minas Gerais ADR (Brazil)(b)		520,274
		Electrical Equipment—15.1%
	2,453	Acuity Brands, Inc.		598,262
	8,699	Eaton Corp. PLC		550,386
	9,784	Emerson Electric Co.		534,500
	9,391	EnerSys		548,153
	47,911	General Cable Corp.		749,328
	8,667	Regal Beloit Corp.		558,328
				3,538,957
		Electronic Equipment, Instruments & Components—2.5%
	31,153	Corning, Inc.		581,627
		Energy Equipment & Services—3.2%
	165,031	McDermott International, Inc.(c)		749,241
		Food & Staples Retailing—2.8%
	19,760	Andersons, Inc. (The)		662,158
		Independent Power & Renewable Electricity Producers—5.5%
	39,146	Calpine Corp.(c)		617,724
	41,662	NRG Yield, Inc., Class C(b)		674,091
				1,291,815
		Industrial Conglomerates—2.3%
	19,328	Koninklijke Philips NV (Netherlands)		531,713
		Machinery—12.7%
	19,514	Altra Industrial Motion Corp.		560,052
	25,161	Chart Industries, Inc.(c)		647,644
	13,761	ESCO Technologies, Inc.		529,523
	10,128	Luxfer Holdings PLC ADR (United Kingdom)		130,145
	5,032	WABCO Holdings, Inc.(c)		564,389
	10,295	Woodward, Inc.		558,092
				2,989,845

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Oil, Gas & Consumable Fuels—23.7%
	140,998	Chesapeake Energy Corp.	$	968,656
	35,917	Clean Energy Fuels Corp.(b)(c)		102,723
	132,950	Cosan Ltd., Class A (Brazil)		715,271
	28,021	Golar LNG Ltd. (Bermuda)(b)		464,588
	39,995	Green Plains, Inc.		723,910
	18,676	Range Resources Corp.		823,798
	21,258	Sasol Ltd. ADR (South Africa)		697,050
	79,228	Southwestern Energy Co.(b)(c)		1,064,032
				5,560,028
		Real Estate Investment Trusts—2.5%
	29,716	Hannon Armstrong Sustainable Infrastructure Capital, Inc. REIT		576,490
		Semiconductors & Semiconductor Equipment—2.3%
	29,830	Veeco Instruments, Inc.(c)		549,170
		Total Common Stocks and Other Equity Interests (Cost $22,208,447)		23,497,834
		Money Market Fund—0.1%
	11,982	Invesco Premier Portfolio—Institutional Class, 0.39%(d) (Cost $11,982)		11,982
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $22,220,429)—100.1%		23,509,816
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—7.2%
	1,699,462	Invesco Liquid Assets Portfolio—Institutional Class, 0.44%(d)(e) (Cost $1,699,462)		1,699,462
		Total Investments (Cost $23,919,891)—107.3%		25,209,278
		Other assets less liabilities—(7.3)%		(1,722,222	)
		Net Assets—100.0%	$	23,487,056

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, 2016.

^(c) Non-income producing security.

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

44

PowerShares WilderHill Progressive Energy Portfolio (PUW) (continued)

April 30, 2016

^(d) The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of April 30, 2016.

^(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 2J.

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

45

Statements of Assets and Liabilities

April 30, 2016

	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)	$	298,665,181		$	71,249,825		$	1,438,088,012		$	290,890,032
Affiliated investments, at value		101,580			3,150,893			895,085			70,988,650
Total investments, at value		298,766,761			74,400,718			1,438,983,097			361,878,682
Foreign currencies, at value		—			—			—			9,898
Receivables:
Investments sold		1,849,114			—			8,104,546			1,971,195
Dividends		216,210			64,207			380,677			484,966
Foreign tax reclaims		—			96,373			10,433			885,666
Securities lending		—			10,053			—			71,206
Settlement proceeds		—			122,752			—			220,946
Unrealized appreciation on swap agreements		—			—			—			87
Other assets		2,947			2,942			5,553			4,609
Total Assets		300,835,032			74,697,045			1,447,484,306			365,527,255
Liabilities:
Due to custodian		—			—			—			—
Payables:
Shares repurchased		1,849,530			—			8,101,417			—
Collateral upon return of securities loaned		—			3,145,606			—			37,861,974
Investments purchased		—			—			—			151,624
Payable for swaps		—			—			—			2,617
Unrealized depreciation on swap agreements		—			—			—			1,226,483
Open written options, at value		—			—			—			—
Accrued advisory fees		121,127			19,200			605,349			130,346
Accrued trustees’ and officer’s fees		23,114			20,452			54,868			32,583
Accrued expenses		106,475			45,912			700,219			197,099
Total Liabilities		2,100,246			3,231,170			9,461,853			39,602,726
Net Assets	$	298,734,786		$	71,465,875		$	1,438,022,453		$	325,924,529
Net Assets Consist of:
Shares of beneficial interest	$	311,416,487		$	139,995,707		$	1,711,051,055		$	470,888,842
Undistributed net investment income		354,278			182,053			1,885,622			(11,297,899	)
Undistributed net realized gain (loss)		(31,809,420	)		(82,483,786	)		(392,626,613	)		(107,331,377	)
Net unrealized appreciation (depreciation)		18,773,441			13,771,901			117,712,389			(26,335,037	)
Net Assets	$	298,734,786		$	71,465,875		$	1,438,022,453		$	325,924,529
Shares outstanding (unlimited amount authorized, $0.01 par value)		8,200,000			2,350,000			35,500,000			31,200,000
Net asset value	$	36.43		$	30.41		$	40.51		$	10.45
Market price	$	36.42		$	30.29		$	40.50		$	10.39
Unaffiliated investments, at cost	$	279,891,740		$	57,477,869		$	1,320,375,623		$	315,975,424
Affiliated investments, at cost	$	101,580		$	3,150,893		$	895,085		$	70,988,650
Total investments, at cost	$	279,993,320		$	60,628,762		$	1,321,270,708		$	386,964,074
Foreign currencies, at cost	$	—		$	—		$	—		$	9,913
Premium received on written options	$	—		$	—		$	—		$	—
(a) Includes securities on loan with an aggregate value of	$	—		$	3,036,126		$	—		$	36,380,719

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

46

PowerShares Golden Dragon China Portfolio (PGJ)			PowerShares S&P 500 BuyWrite Portfolio (PBP)			PowerShares S&P 500® Quality Portfolio  (SPHQ)			PowerShares Water Resources Portfolio (PHO)			PowerShares WilderHill Clean Energy Portfolio (PBW)			PowerShares WilderHill Progressive Energy Portfolio (PUW)
$	163,312,552		$	299,878,183		$	899,037,158		$	680,377,441		$	101,246,537		$	23,497,834
	22,195,954			214,744			—			350,128			27,046,765			1,711,444
	185,508,506			300,092,927			899,037,158			680,727,569			128,293,302			25,209,278
	—			—			—			—			—			—
	—			—			—			—			—			—
	8,600			323,081			1,037,043			345,715			17,099			15,283
	—			—			—			—			32,697			18,538
	56,521			—			—			—			345,593			4,221
	—			—			—			—			—			—
	—			—			—			—			—			—
	2,977			—			3,258			4,609			4,609			3,333
	185,576,604			300,416,008			900,077,459			681,077,893			128,693,300			25,250,653
	—			234,694			585,305			—			111,271			—
	—			—			—			—			—			—
	22,035,328			—			—			—			27,046,765			1,699,462
	—			—			—			—			121,788			—
	—			—			—			—			—			—
	—			—			—			—			—			—
	—			2,098,140			—			—			—			—
	70,303			188,006			131,664			270,998			5,792			2,565
	34,928			—			27,460			90,075			46,706			16,907
	187,811			—			255,140			254,112			105,891			44,663
	22,328,370			2,520,840			999,569			615,185			27,438,213			1,763,597
$	163,248,234		$	297,895,168		$	899,077,890		$	680,462,708		$	101,255,087		$	23,487,056
$	468,665,900		$	305,161,484		$	971,528,723		$	1,226,968,068		$	1,493,610,524		$	63,949,002
	(204,010	)		807,310			1,892,733			325,612			246,275			47,436
	(307,502,363	)		(16,445,666	)		(101,038,579	)		(675,547,682	)		(1,387,100,603	)		(41,798,769	)
	2,288,707			8,372,040			26,695,013			128,716,710			(5,501,109	)		1,289,387
$	163,248,234		$	297,895,168		$	899,077,890		$	680,462,708		$	101,255,087		$	23,487,056
	5,350,000			14,650,000			36,400,000			29,600,000			24,650,000			1,050,000
$	30.51		$	20.33		$	24.70		$	22.99		$	4.11		$	22.37
$	30.49		$	20.29		$	24.70		$	22.98		$	4.11		$	22.36
$	161,023,845		$	293,098,501		$	872,342,145		$	551,660,731		$	106,747,646		$	22,208,447
$	22,195,954		$	253,644		$	—		$	350,128		$	27,046,765		$	1,711,444
$	183,219,799		$	293,352,145		$	872,342,145		$	552,010,859		$	133,794,411		$	23,919,891
$	—		$	—		$	—		$	—		$	—		$	—
$	—		$	3,729,398		$	—		$	—		$	—		$	—
$	21,214,487		$	—		$	—		$	—		$	24,580,037		$	1,629,286

47

Statements of Operations

For the year ended April 30, 2016

	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	$	5,755,567		$	989,066		$	16,663,790		$	25,325,477
Affiliated dividend income		1,373			81			2,269			66,569
Securities lending income		—			123,876			—			547,589
Foreign withholding tax		—			(85,419	)		—			(458,748	)
Total Income		5,756,940			1,027,604			16,666,059			25,480,887
Expenses:
Advisory fees		1,343,216			357,786			8,982,393			2,068,668
Sub-licensing fees		161,184			53,668			1,796,478			413,733
Recapture (Note 3)		59,650			—			—			—
Accounting & administration fees		53,155			34,843			349,873			71,894
Professional fees		28,944			36,255			50,232			40,153
Trustees’ and officer’s fees		12,541			8,948			43,395			15,604
Custodian & transfer agent fees		5,616			10,426			24,007			40,229
Other expenses		55,696			23,427			170,356			88,012
Total Expenses		1,720,002			525,353			11,416,734			2,738,293
Less: Waivers		(865	)		(42,428	)		(2,077	)		(71,625	)
Net Expenses		1,719,137			482,925			11,414,657			2,666,668
Net Investment Income		4,037,803			544,679			5,251,402			22,814,219
Realized and Unrealized Gain (Loss):
Net realized gain (loss) from:
Investment securities		(4,197,179	)		489,142			(147,914,272	)		(8,836,631	)
In-kind redemptions		18,248,496			1,408,642			159,582,237			18,348,385
Swap agreements		—			—			—			(14,567,140	)
Written options		—			—			—			—
Foreign currencies		—			1,844			—			(87,668	)
Net realized gain (loss)		14,051,317			1,899,628			11,667,965			(5,143,054	)
Change in net unrealized appreciation (depreciation) on:
Investment securities		(10,888,996	)		(2,564,753	)		(151,181,845	)		(59,459,267	)
Swap agreements		—			—			—			(685,203	)
Written options		—			—			—			—
Foreign currencies		—			4,261			—			12,189
Net change in unrealized appreciation (depreciation)		(10,888,996	)		(2,560,492	)		(151,181,845	)		(60,132,281	)
Net realized and unrealized gain (loss)		3,162,321			(660,864	)		(139,513,880	)		(65,275,335	)
Net increase (decrease) in net assets resulting from operations	$	7,200,124		$	(116,185	)	$	(134,262,478	)	$	(42,461,116	)

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® Quality Portfolio  (SPHQ)			PowerShares Water Resources Portfolio (PHO)			PowerShares WilderHill Clean Energy Portfolio (PBW)			PowerShares WilderHill Progressive Energy Portfolio (PUW)
$	1,099,980		$	7,288,540		$	13,369,326		$	8,561,838		$	408,651		$	341,160
	381			9,458			836			892			221			48
	547,032			—			—			—			3,038,066			173,130
	(62,012	)		(266	)		—			(85,924	)		—			(10,901	)
	1,585,381			7,297,732			13,370,162			8,476,806			3,446,938			503,437
	899,566			2,465,562			1,751,542			3,557,991			561,673			123,207
	179,912			—			280,521			533,701			112,334			24,641
	—			—			—			—			—			—
	31,492			—			113,226			123,877			34,796			34,935
	31,442			—			33,171			33,495			25,822			25,194
	11,081			—			17,804			21,339			9,806			8,106
	89,034			—			20,952			8,365			61,428			12,705
	25,667			—			57,895			80,758			43,317			15,511
	1,268,194			2,465,562			2,275,111			4,359,526			849,176			244,299
	(9,142	)		(619	)		(524,503	)		(893	)		(63,048	)		(71,848	)
	1,259,052			2,464,943			1,750,608			4,358,633			786,128			172,451
	326,329			4,832,789			11,619,554			4,118,173			2,660,810			330,986
	(11,751,582	)		(5,658,381	)		(8,792,194	)		(120,105,992	)		(39,829,020	)		(6,165,787	)
	16,959,178			54,963,741			104,689,495			77,141,684			1,457,398			889,756
	—			—			—			—			—			—
	—			(558,883	)		—			—			—			—
	—			—			—			—			—			—
	5,207,596			48,746,477			95,897,301			(42,964,308	)		(38,371,622	)		(5,276,031	)
	(28,892,998	)		(53,614,097	)		(44,054,301	)		(35,442,735	)		(2,472,953	)		(1,905,394	)
	—			—			—			—			—			—
	—			780,742			—			—			—			—
	—			—			—			—			—			—
	(28,892,998	)		(52,833,355	)		(44,054,301	)		(35,442,735	)		(2,472,953	)		(1,905,394	)
	(23,685,402	)		(4,086,878	)		51,843,000			(78,407,043	)		(40,844,575	)		(7,181,425	)
$	(23,359,073	)	$	745,911		$	63,462,554		$	(74,288,870	)	$	(38,183,765	)	$	(6,850,439	)

49

Statements of Changes in Net Assets

For the years ended April 30, 2016 and 2015

	PowerShares Aerospace & Defense Portfolio (PPA)						PowerShares Cleantech™ Portfolio (PZD)
	2016			2015			2016			2015
Operations:
Net investment income	$	4,037,803		$	1,741,076		$	544,679		$	695,733
Net realized gain (loss)		14,051,317			5,418,419			1,899,628			4,185,001
Net change in unrealized appreciation (depreciation)		(10,888,996	)		12,880,679			(2,560,492	)		(7,838,210	)
Net increase (decrease) in net assets resulting from operations		7,200,124			20,040,174			(116,185	)		(2,957,476	)
Distributions to Shareholders from:
Net investment income		(3,934,869	)		(1,474,100	)		(576,797	)		(635,362	)
Return of capital		—			—			—			—
Total distributions to shareholders		(3,934,869	)		(1,474,100	)		(576,797	)		(635,362	)
Shareholder Transactions:
Proceeds from shares sold		110,857,357			163,593,010			—			4,394,744
Value of shares repurchased		(78,000,522	)		(17,632,615	)		(4,353,113	)		(8,825,354	)
Net increase (decrease) in net assets resulting from shares transactions		32,856,835			145,960,395			(4,353,113	)		(4,430,610	)
Increase (Decrease) in Net Assets		36,122,090			164,526,469			(5,046,095	)		(8,023,448	)
Net Assets:
Beginning of year		262,612,696			98,086,227			76,511,970			84,535,418
End of year	$	298,734,786		$	262,612,696		$	71,465,875		$	76,511,970
Undistributed net investment income at end of year	$	354,278		$	251,344		$	182,053		$	212,327
Changes in Shares Outstanding:
Shares sold		3,150,000			4,800,000			—			150,000
Shares repurchased		(2,300,000	)		(500,000	)		(150,000	)		(300,000	)
Shares outstanding, beginning of year		7,350,000			3,050,000			2,500,000			2,650,000
Shares outstanding, end of year		8,200,000			7,350,000			2,350,000			2,500,000

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

50

PowerShares DWA Momentum Portfolio (PDP)						PowerShares Global Listed Private Equity Portfolio (PSP)						PowerShares Golden Dragon China Portfolio (PGJ)
2016			2015			2016			2015			2016			2015
$	5,251,402		$	5,843,484		$	22,814,219		$	16,776,727		$	326,329		$	1,678,779
	11,667,965			142,930,976			(5,143,054	)		47,953,184			5,207,596			33,306,462
	(151,181,845	)		44,967,654			(60,132,281	)		(42,186,037	)		(28,892,998	)		5,108,538
	(134,262,478	)		193,742,114			(42,461,116	)		22,543,874			(23,359,073	)		40,093,779
	(5,095,535	)		(4,082,216	)		(22,461,093	)		(27,591,991	)		(604,271	)		(2,129,714	)
	—			—			—			—			(172,929	)		—
	(5,095,535	)		(4,082,216	)		(22,461,093	)		(27,591,991	)		(777,200	)		(2,129,714	)
	825,218,576			1,257,742,866			27,886,163			134,129,178			31,179,637			79,503,122
	(1,119,618,364	)		(836,066,053	)		(113,645,852	)		(236,075,900	)		(74,425,765	)		(145,405,126	)
	(294,399,788	)		421,676,813			(85,759,689	)		(101,946,722	)		(43,246,128	)		(65,902,004	)
	(433,757,801	)		611,336,711			(150,681,898	)		(106,994,839	)		(67,382,401	)		(27,937,939	)
	1,871,780,254			1,260,443,543			476,606,427			583,601,266			230,630,635			258,568,574
$	1,438,022,453		$	1,871,780,254		$	325,924,529		$	476,606,427		$	163,248,234		$	230,630,635
$	1,885,622		$	1,729,755		$	(11,297,899	)	$	(8,610,255	)	$	(204,010	)	$	(241,593	)
	19,600,000			30,900,000			2,400,000			11,400,000			950,000			2,500,000
	(28,200,000	)		(20,900,000	)		(11,100,000	)		(21,000,000	)		(2,450,000	)		(5,000,000	)
	44,100,000			34,100,000			39,900,000			49,500,000			6,850,000			9,350,000
	35,500,000			44,100,000			31,200,000			39,900,000			5,350,000			6,850,000

51

Statements of Changes in Net Assets (continued)

For the years ended April 30, 2016 and 2015

	PowerShares S&P 500 BuyWrite Portfolio (PBP)						PowerShares S&P 500® Quality Portfolio (SPHQ)
	2016			2015			2016			2015
Operations:
Net investment income	$	4,832,789		$	4,677,970		$	11,619,554		$	8,201,541
Net realized gain (loss)		48,746,477			(1,191,009	)		95,897,301			43,790,455
Net change in unrealized appreciation (depreciation)		(52,833,355	)		9,732,702			(44,054,301	)		(389,529	)
Net increase (decrease) in net assets resulting from operations		745,911			13,219,663			63,462,554			51,602,467
Distributions to Shareholders from:
Net investment income		(5,351,930	)		(13,360,682	)		(10,888,763	)		(7,699,802	)
Net realized gains		(12,062,642	)		(3,220,888	)		—			—
Total distributions to shareholders		(17,414,572	)		(16,581,570	)		(10,888,763	)		(7,699,802	)
Shareholder Transactions:
Proceeds from shares sold		113,491,101			231,535,424			927,220,372			242,538,333
Value of shares repurchased		(203,197,290	)		(73,361,924	)		(614,252,831	)		(118,590,643	)
Net increase (decrease) in net assets resulting from shares transactions		(89,706,189	)		158,173,500			312,967,541			123,947,690
Increase (Decrease) in Net Assets		(106,374,850	)		154,811,593			365,541,332			167,850,355
Net Assets:
Beginning of year		404,270,018			249,458,425			533,536,558			365,686,203
End of year	$	297,895,168		$	404,270,018		$	899,077,890		$	533,536,558
Undistributed net investment income at end of year	$	807,310		$	863,901		$	1,892,733		$	1,161,942
Changes in Shares Outstanding:
Shares sold		5,400,000			10,900,000			39,250,000			10,650,000
Shares repurchased		(9,800,000	)		(3,550,000	)		(25,800,000	)		(5,200,000	)
Shares outstanding, beginning of year		19,050,000			11,700,000			22,950,000			17,500,000
Shares outstanding, end of year		14,650,000			19,050,000			36,400,000			22,950,000

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

52

PowerShares Water Resources Portfolio (PHO)						PowerShares WilderHill Clean Energy Portfolio (PBW)						PowerShares WilderHill Progressive Energy Portfolio (PUW)
2016			2015			2016			2015			2016			2015
$	4,118,173		$	5,188,745		$	2,660,810		$	3,905,403		$	330,986		$	639,539
	(42,964,308	)		26,094,958			(38,371,622	)		(10,857,926	)		(5,276,031	)		643,328
	(35,442,735	)		(53,398,337	)		(2,472,953	)		(13,364,817	)		(1,905,394	)		(6,100,025	)
	(74,288,870	)		(22,114,634	)		(38,183,765	)		(20,317,340	)		(6,850,439	)		(4,817,158	)
	(5,414,109	)		(5,760,750	)		(2,346,665	)		(4,135,076	)		(367,721	)		(626,095	)
	—			—			—			—			—			—
	(5,414,109	)		(5,760,750	)		(2,346,665	)		(4,135,076	)		(367,721	)		(626,095	)
	149,177,885			35,679,168			5,301,285			28,214,118			—			5,044,172
	(244,171,049	)		(142,892,020	)		(7,305,808	)		(78,072,886	)		(3,464,537	)		(11,250,272	)
	(94,993,164	)		(107,212,852	)		(2,004,523	)		(49,858,768	)		(3,464,537	)		(6,206,100	)
	(174,696,143	)		(135,088,236	)		(42,534,953	)		(74,311,184	)		(10,682,697	)		(11,649,353	)
	855,158,851			990,247,087			143,790,040			218,101,224			34,169,753			45,819,106
$	680,462,708		$	855,158,851		$	101,255,087		$	143,790,040		$	23,487,056		$	34,169,753
$	325,612		$	1,621,548		$	246,275		$	(127,786	)	$	47,436		$	84,171
	6,650,000			1,400,000			1,250,000			4,300,000			—			150,000
	(11,000,000	)		(5,650,000	)		(1,550,000	)		(12,450,000	)		(150,000	)		(350,000	)
	33,950,000			38,200,000			24,950,000			33,100,000			1,200,000			1,400,000
	29,600,000			33,950,000			24,650,000			24,950,000			1,050,000			1,200,000

53

Financial Highlights

PowerShares Aerospace & Defense Portfolio (PPA)

	Year Ended April 30,
	2016			2015			2014			2013			2012
Per Share Operating Performance:
Net asset value at beginning of year	$	35.73		$	32.16		$	23.22		$	19.99		$	20.57
Net investment income(a)		0.53	(b)		0.32			0.33			0.44			0.21
Net realized and unrealized gain (loss) on investments		0.67			3.52			9.00			3.22			(0.60	)
Total from investment operations		1.20			3.84			9.33			3.66			(0.39	)
Distributions to shareholders from:
Net investment income		(0.50	)		(0.27	)		(0.39	)		(0.43	)		(0.19	)
Net asset value at end of year	$	36.43		$	35.73		$	32.16		$	23.22		$	19.99
Market price at end of year(c)	$	36.42		$	35.71		$	32.15		$	23.20		$	19.98
Net Asset Value Total Return(d)		3.43	%		11.99	%		40.52	%		18.69	%		(1.82	)%
Market Price Total Return(d)		3.46	%		11.96	%		40.59	%		18.65	%		(1.87	)%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	298,735		$	262,613		$	98,086		$	47,607		$	54,967
Ratio to average net assets of:
Expenses, after Waivers		0.64	%		0.66	%		0.66	%		0.66	%		0.66	%
Expenses, prior to Waivers		0.64	%		0.66	%		0.69	%		0.74	%		0.76	%
Net investment income, after Waivers		1.50	%(b)		0.94	%		1.13	%		2.18	%		1.09	%
Portfolio turnover rate(e)		16	%		13	%		8	%		17	%		25	%

^(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 $0.33 and 0.93%, 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 for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions.

PowerShares Cleantech^TM Portfolio (PZD)

	Year Ended April 30,
	2016			2015			2014			2013			2012
Per Share Operating Performance:
Net asset value at beginning of year	$	30.60		$	31.90		$	25.47		$	23.06		$	30.10
Net investment income(a)		0.22			0.27			0.17			0.26			0.24
Net realized and unrealized gain (loss) on investments		(0.18	)		(1.33	)		6.53			2.37			(7.07	)
Total from investment operations		0.04			(1.06	)		6.70			2.63			(6.83	)
Distributions to shareholders from:
Net investment income		(0.23	)		(0.24	)		(0.27	)		(0.22	)		(0.21	)
Net asset value at end of year	$	30.41		$	30.60		$	31.90		$	25.47		$	23.06
Market price at end of year(b)	$	30.29		$	30.54		$	31.92		$	25.36		$	22.98
Net Asset Value Total Return(c)		0.15	%		(3.36	)%		26.52	%		11.59	%		(22.65	)%
Market Price Total Return(c)		(0.05	)%		(3.61	)%		27.15	%		11.50	%		(22.87	)%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	71,466		$	76,512		$	84,535		$	71,314		$	100,305
Ratio to average net assets of:
Expenses, after Waivers		0.67	%		0.67	%		0.67	%		0.67	%		0.67	%
Expenses, prior to Waivers		0.73	%		0.72	%		0.72	%		0.76	%		0.74	%
Net investment income, after Waivers		0.76	%		0.89	%		0.58	%		1.16	%		0.97	%
Portfolio turnover rate(d)		25	%		22	%		24	%		22	%		27	%

^(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 for periods less than one year, if applicable, 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.

54

Financial Highlights (continued)

PowerShares DWA Momentum Portfolio (PDP)

	Year Ended April 30,
	2016			2015			2014			2013			2012
Per Share Operating Performance:
Net asset value at beginning of year	$	42.44		$	36.96		$	31.77		$	27.86		$	26.52
Net investment income(a)		0.12			0.16			0.06			0.23			0.07
Net realized and unrealized gain (loss) on investments		(1.94	)		5.43			5.23			3.92			1.31
Total from investment operations		(1.82	)		5.59			5.29			4.15			1.38
Distributions to shareholders from:
Net investment income		(0.11	)		(0.11	)		(0.10	)		(0.24	)		(0.04	)
Net asset value at end of year	$	40.51		$	42.44		$	36.96		$	31.77		$	27.86
Market price at end of year(b)	$	40.50		$	42.43		$	36.93		$	31.76		$	27.86
Net Asset Value Total Return(c)		(4.29	)%		15.13	%		16.71	%		15.02	%		5.22	%
Market Price Total Return(c)		(4.29	)%		15.19	%		16.65	%		14.98	%		5.15	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	1,438,022		$	1,871,780		$	1,260,444		$	876,929		$	571,078
Ratio to average net assets of:
Expenses, after Waivers		0.64	%		0.63	%(d)		0.64	%(d)		0.67	%(d)		0.65	%
Expenses, prior to Waivers		0.64	%		0.63	%(d)		0.64	%(d)		0.67	%(d)		0.65	%
Net investment income, after Waivers		0.29	%		0.39	%		0.17	%		0.82	%		0.29	%
Portfolio turnover rate(e)		100	%		73	%		75	%		66	%		96	%

^(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 companies’ 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 investment companies 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 for periods less than one year, if applicable, 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.

55

Financial Highlights (continued)

PowerShares Global Listed Private Equity Portfolio (PSP)

	Year Ended April 30,
	2016			2015			2014			2013			2012
Per Share Operating Performance:
Net asset value at beginning of year	$	11.95		$	11.79		$	11.70		$	9.22		$	12.17
Net investment income(a)		0.60	(b)		0.35			0.38	(c)		0.24			0.26
Net realized and unrealized gain (loss) on investments		(1.53	)		0.41			1.38			2.64			(2.58	)
Total from investment operations		(0.93	)		0.76			1.76			2.88			(2.32	)
Distributions to shareholders from:
Net investment income		(0.57	)		(0.60	)		(1.67	)		(0.40	)		(0.56	)
Return of capital		—			—			—			—			(0.07	)
Total distributions		(0.57	)		(0.60	)		(1.67	)		(0.40	)		(0.63	)
Net asset value at end of year	$	10.45		$	11.95		$	11.79		$	11.70		$	9.22
Market price at end of year(d)	$	10.39		$	11.93		$	11.85		$	11.75		$	9.25
Net Asset Value Total Return(e)		(8.09	)%		6.79	%		16.20	%		31.87	%		(19.51	)%
Market Price Total Return(e)		(8.47	)%		6.09	%		16.31	%		32.00	%		(19.80	)%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	325,925		$	476,606		$	583,601		$	408,492		$	296,744
Ratio to average net assets of:
Expenses, after Waivers(f)		0.64	%		0.64	%		0.69	%		0.70	%		0.71	%
Expenses, prior to Waivers(f)		0.66	%		0.66	%		0.70	%		0.70	%		0.76	%
Net investment income, after Waivers		5.51	%(b)		3.04	%		3.20	%(c)		2.47	%		2.79	%
Portfolio turnover rate(g)		35	%		30	%		53	%		53	%		88	%

^(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 $0.34 and 3.12%, respectively.

^(c)  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.

^(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)  In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the investment companies in which the Fund invests. Estimated investment companies’ expenses are not expenses that are incurred directly by the Fund. They are expenses that are incurred directly by the investment companies and are deducted from the value of the investment companies 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.

^(g)  Portfolio turnover rate is not annualized for periods less than one year, if applicable, 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 Golden Dragon China Portfolio (PGJ)

	Year Ended April 30,
	2016			2015			2014			2013			2012
Per Share Operating Performance:
Net asset value at beginning of year	$	33.67		$	27.65		$	19.65		$	21.56		$	28.98
Net investment income(a)		0.06			0.21			0.21			0.34			0.48
Net realized and unrealized gain (loss) on investments		(3.10	)		6.06			8.08			(1.81	)		(7.43	)
Total from investment operations		(3.04	)		6.27			8.29			(1.47	)		(6.95	)
Distributions to shareholders from:
Net investment income		(0.09	)		(0.25	)		(0.29	)		(0.44	)		(0.47	)
Return of capital		(0.03	)		—			—			—			—
Total distributions		(0.12	)		(0.25	)		(0.29	)		(0.44	)		(0.47	)
Net asset value at end of year	$	30.51		$	33.67		$	27.65		$	19.65		$	21.56
Market price at end of year(b)	$	30.49		$	33.62		$	27.60		$	19.59		$	21.49
Net Asset Value Total Return(c)		(9.04	)%		22.79	%		42.28	%		(6.73	)%(d)		(23.98	)%
Market Price Total Return(c)		(8.97	)%		22.83	%		42.46	%		(6.70	)%		(23.93	)%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	163,248		$	230,631		$	258,569		$	181,744		$	245,838
Ratio to average net assets of:
Expenses, after Waivers		0.70	%		0.70	%		0.70	%		0.70	%		0.69	%
Expenses, prior to Waivers		0.70	%		0.70	%		0.70	%		0.75	%		0.71	%
Net investment income, after Waivers		0.18	%		0.68	%		0.75	%		1.78	%		2.08	%
Portfolio turnover rate(e)		47	%		25	%		37	%		63	%		23	%

^(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 for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions.

PowerShares S&P 500 BuyWrite Portfolio (PBP)

	Year Ended April 30,
	2016			2015			2014			2013			2012
Per Share Operating Performance:
Net asset value at beginning of year	$	21.22		$	21.32		$	20.83		$	20.60		$	21.52
Net investment income(a)		0.30			0.28			0.28			0.33			0.29
Net realized and unrealized gain (loss) on investments		(0.11	)		0.65			1.57			0.70			1.00
Total from investment operations		0.19			0.93			1.85			1.03			1.29
Distributions to shareholders from:
Net investment income		(0.34	)		(0.86	)		(1.35	)		(0.65	)		(2.10	)
Net realized gains		(0.74	)		(0.17	)		(0.01	)		(0.15	)		(0.11	)
Total distributions		(1.08	)		(1.03	)		(1.36	)		(0.80	)		(2.21	)
Net asset value at end of year	$	20.33		$	21.22		$	21.32		$	20.83		$	20.60
Market price at end of year(b)	$	20.29		$	21.22		$	21.35		$	20.83		$	20.65
Net Asset Value Total Return(c)		0.90	%		4.48	%		9.34	%		5.22	%		6.74	%
Market Price Total Return(c)		0.67	%		4.32	%		9.50	%		4.97	%		7.02	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	297,895		$	404,270		$	249,458		$	205,222		$	154,528
Ratio to average net assets of:
Expenses		0.75	%		0.75	%		0.75	%		0.75	%		0.75	%
Net investment income		1.47	%		1.33	%		1.37	%		1.61	%		1.42	%
Portfolio turnover rate(d)		43	%		50	%		32	%		22	%		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 for periods less than one year, if applicable, 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 S&P 500^® Quality Portfolio (SPHQ)

	Year Ended April 30,
	2016			2015			2014			2013			2012
Per Share Operating Performance:
Net asset value at beginning of year	$	23.25		$	20.90		$	17.87		$	15.33		$	14.64
Net investment income(a)		0.45			0.41			0.36			0.33			0.26
Net realized and unrealized gain on investments		1.46			2.33			3.03			2.52			0.74
Total from investment operations		1.91			2.74			3.39			2.85			1.00
Distributions to shareholders from:
Net investment income		(0.46	)		(0.39	)		(0.36	)		(0.31	)		(0.31	)
Net asset value at end of year	$	24.70		$	23.25		$	20.90		$	17.87		$	15.33
Market price at end of year(b)	$	24.70		$	23.24		$	20.89		$	17.87		$	15.33
Net Asset Value Total Return(c)		8.39	%		13.17	%		19.15	%		18.86	%		7.04	%
Market Price Total Return(c)		8.43	%		13.18	%		19.09	%		18.86	%		7.04	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	899,078		$	533,537		$	365,686		$	228,736		$	146,421
Ratio to average net assets of:
Expenses, after Waivers		0.29	%		0.29	%		0.29	%		0.39	%		0.50	%
Expenses, prior to Waivers		0.38	%		0.38	%		0.39	%		0.55	%		0.70	%
Net investment income, after Waivers		1.92	%		1.83	%		1.87	%		2.06	%		1.82	%
Portfolio turnover rate(d)		102	%		18	%		13	%		17	%		14	%

^(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 for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. For the year ended April 30, 2016, 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 Water Resources Portfolio (PHO)

	Year Ended April 30,
	2016			2015			2014			2013			2012
Per Share Operating Performance:
Net asset value at beginning of year	$	25.19		$	25.92		$	22.06		$	18.78		$	20.25
Net investment income(a)		0.13			0.14			0.16			0.16			0.14
Net realized and unrealized gain (loss) on investments		(2.17	)		(0.72	)		3.83			3.28			(1.48	)
Total from investment operations		(2.04	)		(0.58	)		3.99			3.44			(1.34	)
Distributions to shareholders from:
Net investment income		(0.16	)		(0.15	)		(0.13	)		(0.16	)		(0.13	)
Net asset value at end of year	$	22.99		$	25.19		$	25.92		$	22.06		$	18.78
Market price at end of year(b)	$	22.98		$	25.17		$	25.91		$	22.05		$	18.77
Net Asset Value Total Return(c)		(8.09	)%		(2.25	)%		18.16	%		18.48	%		(6.59	)%
Market Price Total Return(c)		(8.06	)%		(2.29	)%		18.17	%		18.49	%		(6.59	)%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	680,463		$	855,159		$	990,247		$	877,064		$	825,510
Ratio to average net assets of:
Expenses, after Waivers		0.61	%		0.61	%		0.61	%		0.62	%		0.62	%
Expenses, prior to Waivers		0.61	%		0.61	%		0.61	%		0.62	%		0.62	%
Net investment income, after Waivers		0.58	%		0.56	%		0.66	%		0.81	%		0.77	%
Portfolio turnover rate(d)		89	%		25	%		34	%		31	%		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 for periods less than one year, if applicable, 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,
	2016			2015			2014			2013			2012
Per Share Operating Performance:
Net asset value at beginning of year	$	5.76		$	6.59		$	4.79		$	5.08		$	10.35
Net investment income(a)		0.11			0.14			0.10			0.11			0.20
Net realized and unrealized gain (loss) on investments		(1.66	)		(0.82	)		1.85			(0.26	)		(5.33	)
Total from investment operations		(1.55	)		(0.68	)		1.95			(0.15	)		(5.13	)
Distributions to shareholders from:
Net investment income		(0.10	)		(0.15	)		(0.15	)		(0.14	)		(0.14	)
Net asset value at end of year	$	4.11		$	5.76		$	6.59		$	4.79		$	5.08
Market price at end of year(b)	$	4.11		$	5.76		$	6.59		$	4.79		$	5.08
Net Asset Value Total Return(c)		(27.19	)%		(10.36	)%		41.23	%		(2.64	)%		(49.78	)%
Market Price Total Return(c)		(27.19	)%		(10.36	)%		41.23	%		(2.65	)%		(49.68	)%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	101,255		$	143,790		$	218,101		$	142,494		$	178,016
Ratio to average net assets of:
Expenses, after Waivers		0.70	%		0.70	%		0.70	%		0.70	%		0.70	%
Expenses, prior to Waivers		0.76	%		0.72	%		0.70	%		0.70	%		0.76	%
Net investment income (loss), after Waivers		2.37	%		2.39	%		1.55	%		2.48	%		2.98	%
Portfolio turnover rate(d)		60	%		48	%		57	%		52	%		46	%

^(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 for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions.

PowerShares WilderHill Progressive Energy Portfolio (PUW)

	Year Ended April 30,
	2016			2015			2014			2013			2012
Per Share Operating Performance:
Net asset value at beginning of year	$	28.47		$	32.73		$	27.56		$	25.87		$	30.68
Net investment income(a)		0.30			0.50			0.24			0.35			0.14
Net realized and unrealized gain (loss) on investments		(6.07	)		(4.27	)		5.27			1.54			(4.71	)
Total from investment operations		(5.77	)		(3.77	)		5.51			1.89			(4.57	)
Distributions to shareholders from:
Net investment income		(0.33	)		(0.49	)		(0.34	)		(0.20	)		(0.24	)
Net asset value at end of year	$	22.37		$	28.47		$	32.73		$	27.56		$	25.87
Market price at end of year(b)	$	22.36		$	28.47		$	32.71		$	27.55		$	25.86
Net Asset Value Total Return(c)		(20.29	)%		(11.59	)%		20.24	%		7.38	%		(14.84	)%
Market Price Total Return(c)		(20.32	)%		(11.54	)%		20.21	%		7.38	%		(14.93	)%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	23,487		$	34,170		$	45,819		$	38,584		$	47,859
Ratio to average net assets of:
Expenses, after Waivers		0.70	%		0.70	%		0.70	%		0.70	%		0.71	%
Expenses, prior to Waivers		0.99	%		0.86	%		0.84	%		0.87	%		0.86	%
Net investment income, after Waivers		1.34	%		1.69	%		0.78	%		1.40	%		0.56	%
Portfolio turnover rate(d)		40	%		41	%		37	%		32	%		36	%

^(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 for periods less than one year, if applicable, 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, 2016

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, 2016, 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® Quality Portfolio (SPHQ) (formerly, PowerShares S&P 500® High Quality Portfolio)	“S&P 500® 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 Leaders 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 BuyWriteSM Index
S&P 500® Quality Portfolio	S&P 500® Quality 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

* Effective after the close of markets on March 18, 2016, the underlying index changed from S&P 500^® High Quality Rankings Index to S&P 500^® Quality 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 will 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.

Momentum Investing Risk. For DWA Momentum Portfolio, the Fund 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.

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^® 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 and Golden Dragon China 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^TM Portfolio, Global Listed Private Equity Portfolio, Golden Dragon China Portfolio and Water Resources Portfolio, since their Underlying Indexes may include ADRs and/or 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.

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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 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.

The Funds may periodically participate in litigation related to each Fund’s investments. As such, the Funds may receive proceeds from litigation settlements. Any proceeds received are included in the Statements of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.

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

Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statements of Operations and the Statements of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of each Fund’s net asset value and, accordingly, they reduce each Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statements of Operations and the Statements of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between each Fund and the Adviser.

E. Country Determination

For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the Adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.

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F. 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, acquired fund fees and expenses, if any, litigation expenses and other 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.

G. 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.

H. 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.

I. Swap Agreements

Global Listed Private Equity Portfolio may enter 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.

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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 cash or liquid securities having a value at least equal to the amount of the potential obligation of the Fund under any swap transaction. Cash held as collateral is recorded as deposits with brokers on the Statements of Assets and Liabilities. 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.

J. Securities Lending

During the fiscal year ended April 30, 2016, 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 securities) 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 Schedules of Investments. Each Fund bears the risk of loss with respect to the investment of collateral. 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. When loaning securities, each Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to each 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. The securities loaned are subject to termination at the option of the borrower or each Fund. Upon termination, the borrower will return to each Fund the securities loaned and each Fund will return the collateral. 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. Each Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to each Fund. Some of these losses may be indemnified by the lending agent. Each 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^® 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^® 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 the Fund’s 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, acquired fund fees and expenses, if any, litigation expenses and other extraordinary expenses.

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 S&P 500 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^® 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, 2017. The Expense Cap (including sub-licensing fees) for S&P 500^®

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Quality Portfolio is 0.29% of the Fund’s average daily net assets per year through at least August 31, 2017. 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, 2017. During its term, the Expense Agreement cannot be terminated or amended to increase the Expense Cap without approval of the Board of Trustees. 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 and Water Resources Portfolio.

Further, through August 31, 2018, 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, 2016, the Adviser waived fees and/or paid Fund expenses for each Fund in the following amounts:

Aerospace & Defense Portfolio	$	865
CleantechTM Portfolio		42,428
DWA Momentum Portfolio		2,077
Global Listed Private Equity Portfolio		71,625
Golden Dragon China Portfolio		9,142
S&P 500 BuyWrite Portfolio		619
S&P 500® Quality Portfolio		524,503
Water Resources Portfolio		893
WilderHill Clean Energy Portfolio		63,048
WilderHill Progressive Energy Portfolio		71,848

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, 2016 are as follows:

	Total Potential Recapture Amounts		Potential Recapture Amounts Expiring
			04/30/17		04/30/18		04/30/19
CleantechTM Portfolio	$	111,934	$	34,174	$	35,420	$	42,340
Golden Dragon China Portfolio		8,803		—		—		8,803
S&P 500® Quality Portfolio		1,202,715		286,999		392,147		523,569
WilderHill Clean Energy Portfolio		97,236		—		34,402		62,834
WilderHill Progressive Energy Portfolio		188,310		55,938		60,563		71,809

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	ISBC LLC
CleantechTM Portfolio	Cleantech Indices LLC
DWA Momentum Portfolio	Dorsey Wright & Associates, LLC
Global Listed Private Equity Portfolio	Red Rocks Capital, LLC
Golden Dragon China Portfolio	The NASDAQ OMX Group, Inc.
S&P 500 BuyWrite Portfolio	S&P Dow Jones Indices LLC
S&P 500® Quality Portfolio	S&P Dow Jones Indices LLC
Water Resources Portfolio	The NASDAQ OMX Group, Inc.
WilderHill Clean Energy Portfolio	WilderHill
WilderHill Progressive Energy Portfolio	Progressive Energy Index LLC

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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 (except for 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, 2016.

S&P 500 BuyWrite Portfolio

	Value April 30, 2015		Purchases at Cost		Proceeds from Sales			Change in Unrealized Appreciation (Depreciation)			Realized Gain		Value April 30, 2016		Dividend Income
Invesco Ltd.	$	393,117	$	109,068	$	(202,157	)	$	(116,961	)	$	31,677	$	214,744	$	8,880

The 1940 Act defines “affiliated person” to include issuers of which a fund holds 5% or more of the outstanding voting securities. The Fund listed below has not owned enough of the outstanding voting securities of the issuer to have control (as defined in the 1940 Act) of that issuer. The table below shows Water Resources Portfolio’s transactions in, and earnings from, its investment in affiliates for the fiscal year ended April 30, 2016.

Water Resources Portfolio

	Value April 30, 2015		Purchases at Cost		Proceeds from Sales			Change in Unrealized Appreciation		Realized Gain (Loss)			Value April 30, 2016		Dividend Income
Layne Christensen Co.*	$	9,006,917	$	2,440,930	$	(9,611,840	)	$	6,352,650	$	(5,631,475	)	$	2,557,182	$	—

* At April 30, 2016, this security was no longer affiliated.

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, 2016, all of the securities in each Fund were valued based on Level 1 inputs (see the Schedules of Investments for security categories). The appreciation on options held in S&P 500 BuyWrite Portfolio was based on Level 1 inputs. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

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	Investments in Securities
	Level 1		Level 2			Level 3		Total
Global Listed Private Equity Portfolio
Equity Securities	$	361,878,682	$	—		$	—	$	361,878,682
Swap Agreements*		—		(1,226,396	)		—		(1,226,396	)
Total Investments	$	361,878,682	$	(1,226,396	)	$	—	$	360,652,286
Golden Dragon China Portfolio
Equity Securities	$	185,508,506	$	—		$	0	$	185,508,506

* Unrealized appreciation (depreciation).

Note 6. Derivative Investments

Value of Derivative Investments at Fiscal Year-End

The table below summarizes the value of each Fund’s derivative investments, detailed by primary risk exposure, held as of April 30, 2016:

	Value
	Global Listed Private Equity Portfolio					S&P 500 BuyWrite Portfolio
Risk Exposure/Derivative Type	Assets		Liabilities			Assets		Liabilities
Equity risk:
Swap agreements(a)	$	87	$	(1,226,483	)	$	—	$	—
Options written contracts(a)		—		—			—		(2,098,140	)
	$	87	$	(1,226,483	)	$	—	$	(2,098,140	)

^(a) Values are disclosed on the Statements of Assets and Liabilities under Unrealized appreciation on swap agreements, Unrealized depreciation on swap agreements and Open written options, at value, respectively.

Effect of Derivative Investments for the Fiscal Year Ended April 30, 2016

The table below summarizes each Fund’s gains (losses) on derivative investments, detailed by primary risk exposure, recognized in earnings during the year:

	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	$	(14,567,140	)	$	(558,883	)
Change in Net Unrealized Appreciation (Depreciation):
Equity risk		(685,203	)		780,742
Total	$	(15,252,343	)	$	221,859

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	$	38,303,837	$	—
Options written contracts		—		326,922,042

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Global Listed Private Equity Portfolio

Open Total Return Swap Agreements
Counterparty	Swap Agreements	Termination Date		Notional Amount		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		10/25/16	$	15,276,285	$	(310,756	)
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		10/25/16		14,863,900		(915,727	)
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		2,342,288		87
Total Open Total Return Swap Agreements—Equity Risk						$	(1,226,396	)

Investment Abbreviations:

LIBOR—London Interbank Offered Rate

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-16	$	2,085		1,452	($	3,729,398	)	$	1,631,258	$	302,742,000	($	2,098,140	)

* 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		1,958		$	4,972,106
Written		20,199			61,405,594
Closed		(12,427	)		(39,162,278	)
Expired		(8,278	)		(23,486,024	)
End of year		1,452		$	3,729,398

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.

The following table presents derivative investments that are either subject to an enforceable netting agreement or offset by collateral arrangements as of April 30, 2016.

Global Listed Private Equity Portfolio

			Gross Amounts Not Offset in the Statement of Assets and Liabilities
	Gross Amounts of Recognized Assets				Collateral Received
Counterparty			Financial Instruments		Non-Cash		Cash		Net Amount
Morgan Stanley, Capital Securities LLC	$	87	$	—	$	—	$	—	$	87

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Global Listed Private Equity Portfolio (continued)

			Gross Amounts Not Offset in the Statement of Assets and Liabilities
	Gross Amounts of Recognized Liabilities				Collateral Pledged
Counterparty			Financial Instruments		Non-Cash			Cash		Net Amount
Citibank, N.A.	$	1,226,483	$	—	$	(720,000	)	$	—	$	506,483

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, 2016 and 2015:

	2016						2015
	Ordinary Income		Long-Term Capital Gains		Return of Capital		Ordinary Income		Long-Term Capital Gains		Return of Capital
Aerospace & Defense Portfolio	$	3,934,869	$	—	$	—	$	1,474,100	$	—	$	—
CleantechTM Portfolio		576,797		—		—		635,362		—		—
DWA Momentum Portfolio		5,095,535		—		—		4,082,216		—		—
Global Listed Private Equity Portfolio		22,461,093		—		—		27,591,991		—		—
Golden Dragon China Portfolio		604,271		—		172,929		2,129,714		—		—
S&P 500 BuyWrite Portfolio		16,484,756		929,816		—		16,581,570		—		—
S&P 500® Quality Portfolio		10,888,763		—		—		7,699,802		—		—
Water Resources Portfolio		5,414,109		—		—		5,760,750		—		—
WilderHill Clean Energy Portfolio		2,346,665		—		—		4,135,076		—		—
WilderHill Progressive Energy Portfolio		367,721		—		—		626,095		—		—

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			Late-Year Ordinary/ Post-October Capital Losses Deferrals*			Shares of Beneficial Interest		Total Net Assets
Aerospace & Defense Portfolio	$	376,206	$	(21,928	)	$	16,935,828		$	—		$	(26,945,654	)	$	(3,026,153	)	$	311,416,487	$	298,734,786
CleantechTM Portfolio		201,518		(19,465	)		13,015,915			(55	)		(81,727,745	)		—			139,995,707		71,465,875
DWA Momentum Portfolio		1,937,965		(52,343	)		114,324,893			—			(304,717,694	)		(84,521,423	)		1,711,051,055		1,438,022,453
Global Listed Private Equity Portfolio		1,042,528		(37,334	)		(49,245,317	)		(20,632	)		(87,930,124	)		(8,773,434	)		470,888,842		325,924,529
Golden Dragon China Portfolio**		—		(33,567	)		(1,254,588	)		—			(295,354,974	)		(8,774,537	)		468,665,900		163,248,234
S&P 500 BuyWrite Portfolio		807,310		—			—			—			—			(8,073,626	)		305,161,484		297,895,168
S&P 500® Quality Portfolio		1,918,293		(25,560	)		25,619,099			—			(89,578,410	)		(10,384,255	)		971,528,723		899,077,890
Water Resources Portfolio		412,970		(87,358	)		124,268,792			—			(606,824,470	)		(64,275,294	)		1,226,968,068		680,462,708
WilderHill Clean Energy Portfolio		858,025		(45,682	)		(10,798,143	)		—			(1,369,613,517	)		(12,756,120	)		1,493,610,524		101,255,087
WilderHill Progressive Energy Portfolio		63,436		(16,000	)		986,927			—			(37,592,724	)		(3,903,585	)		63,949,002		23,487,056

* 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 Golden Dragon China Portfolio incurred and will elect to defer Late-Year Ordinary Losses of $79,641 and Post-October Capital Losses of $8,694,896.

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, 2016.

							Post-effective/no expiration
	2017		2018		2019		Short-Term		Long-Term		Total*		Expired
Aerospace & Defense Portfolio	$	7,470,897	$	6,428,813	$	9,464,875	$	222,565	$	3,358,504	$	26,945,654	$	2,374,303
CleantechTM Portfolio		14,341,075		25,186,026		12,098,616		2,005,428		28,096,600		81,727,745		1,171,839
DWA Momentum Portfolio		92,771,702		60,219,842		10,496,532		141,229,618		—		304,717,694		5,046,566
Global Listed Private Equity Portfolio		7,687,052		47,149,399		—		17,958,447		15,135,226		87,930,124		796,018
Golden Dragon China Portfolio		22,836,421		74,072,167		35,483,714		17,263,381		145,699,291		295,354,974		1,235,904
S&P 500 BuyWrite Portfolio		—		—		—		—		—		—		—
S&P 500® Quality Portfolio		37,241,965		42,466,537		9,869,908		—		—		89,578,410		19,599,607
Water Resources Portfolio		93,208,162		265,948,030		33,978,301		90,981,849		122,708,128		606,824,470		3,553,481
WilderHill Clean Energy Portfolio		261,712,498		460,657,845		241,008,862		73,921,396		332,312,916		1,369,613,517		44,707,703
WilderHill Progressive Energy Portfolio		8,319,827		12,433,887		2,282,887		4,871,192		9,684,931		37,592,724		179,432

* 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, 2016, 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	$	42,047,830	$	42,427,743
CleantechTM Portfolio		17,678,067		17,652,732
DWA Momentum Portfolio		1,804,586,564		1,805,291,481
Global Listed Private Equity Portfolio		128,245,394		131,028,070
Golden Dragon China Portfolio		84,417,803		84,719,793
S&P 500 BuyWrite Portfolio		142,087,671		153,458,842
S&P 500® Quality Portfolio		625,801,013		628,280,400
Water Resources Portfolio		641,820,894		639,814,836
WilderHill Clean Energy Portfolio		69,018,656		68,238,616
WilderHill Progressive Energy Portfolio		10,056,209		9,981,299

For the fiscal year ended April 30, 2016, in-kind transactions associated with creations and redemptions were as follows:

	Cost of Securities Received		Value of Securities Delivered
Aerospace & Defense Portfolio	$	110,849,048	$	77,606,984
CleantechTM Portfolio		—		4,329,461
DWA Momentum Portfolio		825,017,608		1,118,526,906
Global Listed Private Equity Portfolio		24,363,356		101,359,307
Golden Dragon China Portfolio		31,182,610		74,361,423
S&P 500 BuyWrite Portfolio		114,299,968		206,586,138
S&P 500® Quality Portfolio		927,297,344		610,746,430
Water Resources Portfolio		149,148,113		245,300,581
WilderHill Clean Energy Portfolio		5,297,909		7,308,400
WilderHill Progressive Energy Portfolio		—		3,458,298

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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, 2016, 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	$	27,683,659	$	(10,747,831	)	$	16,935,828		$	281,830,933
CleantechTM Portfolio		17,737,034		(4,721,119	)		13,015,915			61,384,803
DWA Momentum Portfolio		133,179,094		(18,854,201	)		114,324,893			1,324,658,204
Global Listed Private Equity Portfolio		15,983,102		(65,228,419	)		(49,245,317	)		411,123,999
Golden Dragon China Portfolio		22,400,059		(23,654,647	)		(1,254,588	)		186,763,094
S&P 500 BuyWrite Portfolio		—		—			—			300,092,927
S&P 500® Quality Portfolio		35,573,976		(9,954,877	)		25,619,099			873,418,059
Water Resources Portfolio		144,916,743		(20,647,951	)		124,268,792			556,458,777
WilderHill Clean Energy Portfolio		10,279,116		(21,077,259	)		(10,798,143	)		139,091,445
WilderHill Progressive Energy Portfolio		3,548,543		(2,561,616	)		986,927			24,222,351

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, 2016, 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, 2016, the reclassifications were as follows:

	Undistributed Net Investment Income			Undistributed Net Realized Gain (Loss)			Shares of Beneficial Interest
Aerospace & Defense Portfolio	$	—		$	(15,394,929	)	$	15,394,929
CleantechTM Portfolio		1,844			(207,873	)		206,029
DWA Momentum Portfolio		—			(151,209,270	)		151,209,270
Global Listed Private Equity Portfolio		(3,040,770	)		(2,646,446	)		5,687,216
Golden Dragon China Portfolio		315,525			(13,716,213	)		13,400,688
S&P 500 BuyWrite Portfolio		462,550			(462,550	)		—
S&P 500® Quality Portfolio		—			(83,276,308	)		83,276,308
Water Resources Portfolio		—			(72,236,575	)		72,236,575
WilderHill Clean Energy Portfolio		59,916			44,545,812			(44,605,728	)
WilderHill Progressive Energy Portfolio		—			(521,632	)		521,632

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.

72

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 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.

73

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^® Quality Portfolio (formerly 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, 2016, 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, 2016 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 23, 2016

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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, acquired fund fees and expenses, if any, litigation expenses and other extraordinary 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, 2016.

In addition to the fees and expenses which the PowerShares Global Listed Private Equity 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 is included in the 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, 2015		Ending Account Value April 30, 2016		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	$	1,029.91		0.62	%	$	3.13
Hypothetical (5% return before expenses)		1,000.00		1,021.78		0.62			3.12
PowerShares CleantechTM Portfolio (PZD)
Actual		1,000.00		1,036.52		0.67			3.39
Hypothetical (5% return before expenses)		1,000.00		1,021.53		0.67			3.37
PowerShares DWA Momentum Portfolio (PDP)
Actual		1,000.00		948.22		0.64			3.10
Hypothetical (5% return before expenses)		1,000.00		1,021.68		0.64			3.22
PowerShares Global Listed Private Equity Portfolio (PSP)
Actual		1,000.00		963.69		0.65			3.17
Hypothetical (5% return before expenses)		1,000.00		1,021.63		0.65			3.27

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Fees and Expenses (continued)

	Beginning Account Value November 1, 2015		Ending Account Value April 30, 2016		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	$	991.54		0.70	%	$	3.47
Hypothetical (5% return before expenses)		1,000.00		1,021.38		0.70			3.52
PowerShares S&P 500 BuyWrite Portfolio (PBP)
Actual		1,000.00		990.13		0.75			3.71
Hypothetical (5% return before expenses)		1,000.00		1,021.13		0.75			3.77
PowerShares S&P 500® Quality Portfolio (SPHQ)
Actual		1,000.00		1,064.74		0.29			1.49
Hypothetical (5% return before expenses)		1,000.00		1,023.42		0.29			1.46
PowerShares Water Resources Portfolio (PHO)
Actual		1,000.00		1,010.34		0.60			3.00
Hypothetical (5% return before expenses)		1,000.00		1,021.88		0.60			3.02
PowerShares WilderHill Clean Energy Portfolio (PBW)
Actual		1,000.00		932.25		0.70			3.36
Hypothetical (5% return before expenses)		1,000.00		1,021.38		0.70			3.52
PowerShares WilderHill Progressive Energy Portfolio (PUW)
Actual		1,000.00		1,044.21		0.70			3.56
Hypothetical (5% return before expenses)		1,000.00		1,021.38		0.70			3.52

⁽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, 2016. Expenses are calculated by multiplying the Fund’s annualized expense ratio by the average account value for the period, then multiplying the result by 182/366. 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, 2016:

	Qualified Dividend Income*			Corporate Dividends Received Deduction*			Long-Term Capital Gains
PowerShares Aerospace & Defense Portfolio		100	%		100	%		$	—
PowerShares CleantechTM Portfolio		100	%		44	%			—
PowerShares DWA Momentum Portfolio		100	%		100	%			—
PowerShares Global Listed Private Equity Portfolio		62	%		26	%			—
PowerShares Golden Dragon China Portfolio		100	%		0	%			—
PowerShares S&P 500 BuyWrite Portfolio		0	%		0	%			928,816
PowerShares S&P 500® Quality Portfolio		100	%		100	%			—
PowerShares Water Resources Portfolio		100	%		100	%			—
PowerShares WilderHill Clean Energy Portfolio		15	%		14	%			—
PowerShares WilderHill Progressive Energy Portfolio		73	%		25	%			—

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

77

Trustees and Officers

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

The Trustees and officers information is current as of April 30, 2016.

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	Chairman of the Nominating and Governance Committee and Trustee	Chairman of the Nominating and Governance Committee and 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).	124	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 (2010-2016); 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.	124	None
Marc M. Kole - 1960 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Chairman of the Audit Committee and Trustee	Chairman of the Audit Committee since 2008; and Trustee since 2006	Senior Director of Finance, By The Hand Club for Kids (2015-Present); 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).	124	None
Yung Bong Lim - 1964 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Chairman of the Investment Oversight Committee and Trustee	Chairman of the Investment Oversight Committee since 2014; Trustee since 2013	Managing Partner, Residential Dynamics Group LLC (2008-Present); formerly, Managing Director, Citadel Investment Group, L.L.C. (1999-2007).	124	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, 2016, the “Fund Family” consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 71 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
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).	124	None
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).	124	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 and Chief Executive Officer, Stone Pillar Advisors, Ltd. (2010-Present); formerly, Chairman, President and Chief Executive Officer, Community Financial Shares, Inc. and Community Bank - Wheaton/Glen Ellyn (subsidiary) (2013-2015); 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).	124	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, 2016, the “Fund Family” consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 71 portfolios advised by the Adviser.

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Trustees and Officers (continued)

The Non-Independent Trustees and the executive officers of the Trust, their term of office and length of time served, their principal business occupations during 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 Trustees are shown below.

Name, Address and Year of Birth of Non-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 Non-Independent Trustee	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. (2007-Present); Director, Invesco Advisers, Inc. (2009-Present); Director, Invesco Finance PLC, 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., IVZ, Inc. and Invesco Asset Management (Bermuda) Ltd.; Manager, Horizon Flight Works LLC; Director and Secretary, IVZ Bahamas Private Limited; formerly, Director, INVESCO Funds Group, Inc., 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.	124	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, 2016, the Fund Complex consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 71 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
Daniel E. Draper - 1968 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	President and Principal Executive Officer	Since 2015	President and Principal Executive Officer, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2015-Present); Chief Executive Officer (2016-Present) and Managing Director (2013-Present), Invesco PowerShares Capital Management LLC; Senior Vice President, Invesco Distributors, Inc. (2014-Present); formerly, 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 (2013-2015) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-2015); 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, 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).
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 (2010-Present); formerly, Vice President of Portfolio Management, Invesco PowerShares Capital Management LLC (2008-2010); 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).
Christopher Joe - 1969 Invesco PowerShares Capital Management LLC 11 Greenway Plaza, Suite 1000 Houston, TX 77046-1173	Chief Compliance Officer	Since 2012	Chief Compliance Officer of Invesco PowerShares Capital Management LLC (2015-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); formerly, Chief Compliance Officer, Invesco Investment Advisers, LLC (registered investment adviser) (2010–2013), U.S. Compliance Director, Invesco, Ltd. (2006-2014) and Deputy Chief Compliance Officer of Invesco Advisers, Inc. (2014-2015).

* 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.

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
Sheri Morris - 1964 Invesco Management Group, Inc. 11 Greenway Plaza, Suite 1000 Houston, TX 77046	Vice President	Since 2012	President, Principal Executive Officer and Treasurer, The Invesco Funds (2016-Present); 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, Vice President, Treasurer and Principal Financial Officer, The Invesco Funds (2008-2016); 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.
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 (2010-Present) and Secretary (2015-Present), 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).
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 Services, Invesco PowerShares Capital Management LLC (2013-Present).
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, and 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, 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.); Chief Administrative Officer, North American Retail, Invesco Ltd. (2007-Present); Director, Invesco Corporate Class Inc. (2014-Present); Director, Invesco Global Direct Real Estate Feeder GP Ltd. (2015-Present); Director, Invesco Canada Holdings Inc. (2002-Present); Director, Invesco Financial Services Ltd. / Services Financiers Invesco Ltée and Trimark Investments Ltd./Placements Trimark Ltée (2014-Present); Director, Invesco IP Holdings (Canada) Ltd. (2016-Present); Director, Invesco Global Direct Real Estate GP Ltd. (2015-Present); formerly, Executive Vice President and Chief Financial Officer, Invesco Inc. (2009-2015); Director, Executive Vice President and Chief Financial Officer, Invesco Canada Ltd. (formerly, Invesco Trimark Ltd.) (2000-2011).

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.

82

Board Considerations Regarding Continuation of Investment Advisory Agreement

At a meeting held on April 14, 2016, 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^TM Portfolio

PowerShares Cleantech^TM 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 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 Russell Top 200 Equal Weight Portfolio

PowerShares Russell Top 200 Pure Growth Portfolio

PowerShares Russell Top 200 Pure Value Portfolio

PowerShares Russell Midcap Equal Weight Portfolio

PowerShares Russell Midcap Pure Growth Portfolio

PowerShares Russell Midcap Pure Value Portfolio

PowerShares Russell 2000 Equal Weight Portfolio

PowerShares Russell 2000 Pure Growth Portfolio

PowerShares Russell 2000 Pure Value Portfolio

PowerShares S&P 500^® 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 for each Fund, (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.

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, 2015, 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 certain Funds and their underlying indexes. In reviewing the tracking error reports, 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 correlation and tracking error for each Fund was within the targeted range set forth in the Trust’s registration statement and 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.

83

Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)

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 Russell Top 200 Equal Weight Portfolio, PowerShares Russell Top 200 Pure Growth Portfolio, PowerShares Russell Top 200 Pure Value Portfolio, PowerShares Russell Midcap Equal Weight Portfolio, PowerShares Russell Midcap Pure Growth Portfolio, PowerShares Russell Midcap Pure Value Portfolio, PowerShares Russell 2000 Equal Weight Portfolio, PowerShares Russell 2000 Pure Growth Portfolio, PowerShares Russell 2000 Pure Value Portfolio and PowerShares S&P 500^® 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;

● 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 Russell Top 200 Pure Growth Portfolio, PowerShares Russell Top 200 Pure Value Portfolio, PowerShares Russell Midcap Pure Growth Portfolio, PowerShares Russell Midcap Pure Value Portfolio, PowerShares Russell 2000 Pure Growth, Portfolio, PowerShares Russell 2000 Pure Value Portfolio and PowerShares S&P 500^® Quality Portfolio; and

● 0.25% of the Fund’s average daily net assets for each of PowerShares Russell Top 200 Equal Weight Portfolio, PowerShares Russell Midcap Equal Weight Portfolio and PowerShares Russell 2000 Equal Weight Portfolio (The net advisory fees, after giving effect to the Expense Caps below, were 0.01%, -0.05% and -0.39% and, respectively, for PowerShares Russell Top 200 Equal Weight Portfolio, PowerShares Russell Midcap Equal Weight Portfolio and PowerShares Russell 2000 Equal Weight 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, 2017, 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 Russell Top 200 Pure Growth Portfolio, PowerShares Russell Top 200 Pure Value Portfolio, PowerShares Russell Midcap Pure Growth Portfolio, PowerShares Russell Midcap Pure Value Portfolio, PowerShares Russell 2000 Pure Growth Portfolio and PowerShares Russell 2000 Pure 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^® Quality Portfolio;

● 0.25%, excluding interest expenses, offering costs, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses for PowerShares Top 200 Equal Weight Portfolio, PowerShares Russell Midcap Equal Weight Portfolio and PowerShares Russell 2000 Equal Weight 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

84

Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)

● 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 Median*	Equal to/Lower than Open-End Active Fund Median
PowerShares Aerospace & Defense Portfolio			X
PowerShares Buyback Achievers Portfolio			X
PowerShares Cleantech Portfolio			X
PowerShares Dividend Achievers Portfolio		X	X
PowerShares DWA Basic Materials Momentum Portfolio			X
PowerShares DWA Consumer Cyclicals Momentum Portfolio			X
PowerShares DWA Consumer Staples Momentum Portfolio			X
PowerShares DWA Energy Momentum Portfolio			X
PowerShares DWA Financial Momentum Portfolio			X
PowerShares DWA Healthcare Momentum Portfolio			X
PowerShares DWA Industrials Momentum Portfolio			X
PowerShares DWA Momentum Portfolio			X
PowerShares DWA NASDAQ Momentum Portfolio			X
PowerShares DWA Technology Momentum Portfolio			X
PowerShares DWA Utilities Momentum Portfolio			X
PowerShares Dynamic Biotechnology & Genome Portfolio			X
PowerShares Dynamic Building & Construction Portfolio			X
PowerShares Dynamic Energy Exploration & Production Portfolio			X
PowerShares Dynamic Food & Beverage Portfolio			X
PowerShares Dynamic Large Cap Growth Portfolio			X
PowerShares Dynamic Large Cap Value Portfolio			X
PowerShares Dynamic Leisure and Entertainment Portfolio			X
PowerShares Dynamic Market Portfolio			X
PowerShares Dynamic Media Portfolio			X
PowerShares Dynamic Networking Portfolio			X
PowerShares Dynamic Oil & Gas Services Portfolio			X
PowerShares Dynamic Pharmaceuticals Portfolio			X
PowerShares Dynamic Retail Portfolio			X
PowerShares Dynamic Semiconductors Portfolio			X
PowerShares Dynamic Software Portfolio			X
PowerShares Financial Preferred Portfolio		N/A	X
PowerShares FTSE RAFI US 1000 Portfolio			X
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio	X		X

85

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 Russell Top 200 Equal Weight Portfolio		X	X
PowerShares Russell Top 200 Pure Growth Portfolio			X
PowerShares Russell Top 200 Pure Value Portfolio			X
PowerShares Russell Midcap Equal Weight Portfolio			X
PowerShares Russell Midcap Pure Growth Portfolio	X	X	X
PowerShares Russell Midcap Pure Value Portfolio	X		X
PowerShares Russell 2000 Equal Weight Portfolio	X		X
PowerShares Russell 2000 Pure Growth Portfolio		X	X
PowerShares Russell 2000 Pure Value Portfolio			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 Quality Portfolio			X
PowerShares Water Resources Portfolio			X
PowerShares WilderHill Clean Energy Portfolio			X
PowerShares WilderHill Progressive Energy Portfolio			X
PowerShares Zacks Micro Cap Portfolio			X

* 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			X
PowerShares Buyback Achievers Portfolio			X
PowerShares Cleantech Portfolio			X
PowerShares Dividend Achievers Portfolio		X	X
PowerShares DWA Basic Materials Momentum Portfolio			X
PowerShares DWA Consumer Cyclicals Momentum Portfolio			X
PowerShares DWA Consumer Staples Momentum Portfolio			X
PowerShares DWA Energy Momentum Portfolio			X
PowerShares DWA Financial Momentum Portfolio			X
PowerShares DWA Healthcare Momentum Portfolio			X
PowerShares DWA Industrials Momentum Portfolio			X
PowerShares DWA Momentum Portfolio		X	X
PowerShares DWA NASDAQ Momentum Portfolio		X	X
PowerShares DWA Technology Momentum Portfolio			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 Median	Equal to/Lower than Open-End Active Fund Median
PowerShares DWA Utilities Momentum Portfolio			X
PowerShares Dynamic Biotechnology & Genome Portfolio			X
PowerShares Dynamic Building & Construction Portfolio			X
PowerShares Dynamic Energy Exploration & Production Portfolio			X
PowerShares Dynamic Food & Beverage Portfolio			X
PowerShares Dynamic Large Cap Growth Portfolio			X
PowerShares Dynamic Large Cap Value Portfolio			X
PowerShares Dynamic Leisure and Entertainment Portfolio			X
PowerShares Dynamic Market Portfolio			X
PowerShares Dynamic Media Portfolio			X
PowerShares Dynamic Networking Portfolio			X
PowerShares Dynamic Oil & Gas Services Portfolio			X
PowerShares Dynamic Pharmaceuticals Portfolio			X
PowerShares Dynamic Retail Portfolio			X
PowerShares Dynamic Semiconductors Portfolio			X
PowerShares Dynamic Software Portfolio			X
PowerShares Financial Preferred Portfolio		N/A	X
PowerShares FTSE RAFI US 1000 Portfolio	X	X	X
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio	X	X	X
PowerShares Russell Top 200 Equal Weight Portfolio		X	X
PowerShares Russell Top 200 Pure Growth Portfolio		X	X
PowerShares Russell Top 200 Pure Value Portfolio			X
PowerShares Russell Midcap Equal Weight Portfolio		X	X
PowerShares Russell Midcap Pure Growth Portfolio	X	X	X
PowerShares Russell Midcap Pure Value Portfolio	X		X
PowerShares Russell 2000 Equal Weight Portfolio	X	X	X
PowerShares Russell 2000 Pure Growth Portfolio		X	X
PowerShares Russell 2000 Pure 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 Quality Portfolio	X	X	X
PowerShares Water Resources Portfolio			X
PowerShares WilderHill Clean Energy Portfolio			X
PowerShares WilderHill Progressive Energy Portfolio			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.

87

Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)

In conjunction with their review of fees, the Trustees also considered information provided by the Adviser on the revenues received by the Adviser under the Investment Advisory Agreement for each Fund, as well as the fees waived and expenses reimbursed by the Adviser for the Funds. The Trustees reviewed information provided by the Adviser on its 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 Cap agreed to by the Adviser. 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.

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

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

88

Board Considerations Regarding Continuation of Investment Advisory Agreement

At a meeting held on April 14, 2016, 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 for each Fund, (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.

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, 2015, 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. 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 ratios of its ETF peer funds and open-end index peer funds, but was lower than the median net expense ratio of its 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 and open-end actively-managed peer funds, but was higher than the median net expense ratio of its open-end index 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 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.

89

Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)

Economies of Scale and Whether Fee Levels Reflect These Economies of Scale. The Trustees reviewed the information provided by the Adviser as to the extent to which economies of scale are realized as each Fund grows and whether fee levels reflect economies of scale for the benefit of shareholders. The Trustees reviewed each Fund’s asset size 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. No single factor was determinative in the Board’s analysis.

90

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.

©2016 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, 2016

2016 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	47
Fees and Expenses	48
Tax Information	49
Trustees and Officers	50
Board Considerations Regarding Continuation of Investment Advisory Agreement	55

2

The Market Environment

US Equity

Although the health of individual economic sectors varied dramatically, the US economy overall continued its slow but steady growth during the fiscal year ended April 30, 2016. This modest growth led to recurring debate over whether the US economy could withstand global recessionary forces. Many energy, industrial and materials companies experienced cyclical downturns resembling a mild recession even as many consumer-related companies benefited from continued low interest rates, increased availability of credit and a better employment picture. Another significant downturn in oil prices reduced capital investment but also reduced consumers’ energy and gasoline costs.

In the first half of the reporting period, US equity market performance was greatly affected by expectations of when, and whether, the US Federal Reserve (the “Fed”) might raise interest rates—and the impact the Fed’s action might have. Markets moved lower in the summer of 2015 as a significant downturn in China’s financial markets and weak global economic growth led to increased concern about the sustainability of US economic growth. In the fall, markets rallied and the Fed saw enough economic stabilization to finally raise interest rates.

US stocks began 2016 on a negative note. Together with a sharp decline in oil prices, this suggested a global recession might be imminent and caused investors to become decidedly risk averse; this helped short-term and income-oriented investments, but hurt longer-term and growth-oriented investments. As companies reported earnings and fundamentals that were better than had been feared, stocks rallied sharply in late February and March. Additionally, oil prices strengthened modestly on the back of a weaker US dollar and as Saudi Arabia and Russia considered a freeze on their oil output. Overall, US equity markets were mixed, with the S&P 500 Index, considered representative of the performance of the US stock market, finishing the reporting period modestly higher.

Global Equity

The global economy continued to expand, albeit slowly, during the fiscal year ended April 30, 2016. However, that growth became increasingly uneven across developed and emerging economies. Central bank policies also began to diverge as the Fed followed through on its commitment to normalize monetary policy by raising interest rates—even as the European Central Bank extended its asset purchase program and the Bank of Japan introduced additional quantitative easing.

Global equity markets faced significant headwinds during the fiscal year, although developed markets were generally able to better withstand these headwinds than more fragile emerging markets. As the reporting period began, diverging monetary policy caused the US dollar to strengthen against many other currencies. During

the summer of 2015, China’s surprise devaluation of the renminbi and a significant downturn in its financial markets triggered a massive sell-off in global equity markets, particularly in already-vulnerable emerging markets. In the fall, markets around the world began to regain their footing. However, 2016 began on a sharply negative note, with equity markets falling as the price of oil declined. In February 2016, markets reversed course, bouncing back sharply as economic data and earnings were better than had been feared. In Japan and Europe, central banks signaled their ongoing commitment to very loose monetary policy, but in the US, the Fed indicated that it may delay additional interest rate increases. As a result, the US dollar fell sharply against the euro and Japanese yen; this benefited oil and stock prices generally. For the reporting period as a whole, US equity markets were mixed, while developed international equity markets were down modestly. Although emerging markets rallied strongly toward the end of the reporting period, many—particularly China, Brazil and Russia—were down significantly for the fiscal year.

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 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, 2016, on a market price basis, the Fund returned (5.20)%. On a net asset value (“NAV”) basis, the Fund returned (5.18)%. During the same time period, the Index returned (4.59)%. 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 1.21%. 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, 2016. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to stock selection within the information technology and consumer discretionary sectors.

For the fiscal year ended April 30, 2016, the industrials sector contributed most significantly to the Fund’s return, followed by the financials and consumer staples sectors, respectively. The information technology 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 Home Depot, Inc. (The), a consumer discretionary company (no longer held at fiscal year-end), and Northrop Grumman Corp., an industrials company (portfolio average weight of 1.68%). Positions that detracted most significantly from the Fund’s return included International Business Machines Corp., an information technology company (no longer held at fiscal year-end), and Apple, Inc., an information technology company (no longer held at fiscal year-end).

4

PowerShares BuyBack Achievers^TM Portfolio (PKW) (continued)

Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2016
Consumer Discretionary	23.1
Industrials	23.0
Financials	17.9
Information Technology	13.7
Health Care	8.9
Consumer Staples	5.4
Materials	4.3
Energy	2.8
Utilities	0.9
Telecommunication Services	0.0
Money Market Funds Plus Other Assets Less Liabilities	(0.0)
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2016
Security
McDonald’s Corp.	5.0
Boeing Co. (The)	4.6
QUALCOMM, Inc.	4.0
Lowe’s Cos., Inc.	3.6
Mondelez International, Inc., Class A	3.5
American International Group, Inc.	3.3
Biogen, Inc.	3.2
Express Scripts Holding Co.	2.5
Monsanto Co.	2.2
Illinois Tool Works, Inc.	2.0
Total	33.9

* Excluding money market fund holdings.

5

PowerShares BuyBack Achievers^TM Portfolio (PKW) (continued)

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

Fund Performance History as of April 30, 2016

	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		(4.59	)%		11.55	%		38.82	%		12.80	%		82.64	%		8.42	%		113.18	%
S&P 500® Index		1.21			11.26			37.71			11.02			68.63			6.31			77.32
Fund
NAV Return		(5.18	)		10.83			36.15			12.04			76.56			7.65			99.34
Market Price Return		(5.20	)		10.81			36.05			12.03			76.49			7.63			98.94

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, 2017. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.64%, 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 their respective 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.

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 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, 2016, on a market price basis, the Fund returned 4.08%. On a net asset value (“NAV”) basis, the Fund returned 3.98%. During the same time period, the Index returned 4.51%. 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 Russell 3000^® Value Index (the “Benchmark Index”) returned (0.68)%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 2,010 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, 2016. The majority of the Fund’s outperformance relative to the Benchmark Index during that period can be attributed to stock selection in the utilities, consumer discretionary and healthcare sectors as well as being overweight in consumer staples.

For the fiscal year ended April 30, 2016, the consumer staples sector contributed most significantly to the Fund’s return, followed by the utilities and consumer discretionary sectors, respectively. The energy sector detracted most significantly from the Fund’s return, followed by the information technology and materials sectors, respectively.

Positions that contributed most significantly to the Fund’s return included Johnson & Johnson, a health care company (portfolio average weight of 4.06%), and AT&T, Inc., a telecommunication services company (portfolio average weight of 3.23%). Positions that detracted most significantly from the Fund’s return included ConocoPhillips, an energy company (no longer held at fiscal year-end), and Wal-Mart Stores, Inc., a consumer staples company (portfolio average weight of 3.39%).

7

PowerShares Dividend Achievers™ Portfolio (PFM) (continued)

Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2016
Consumer Staples	23.6
Industrials	13.7
Energy	10.7
Information Technology	10.7
Health Care	9.0
Consumer Discretionary	7.9
Financials	7.0
Telecommunication Services	6.8
Utilities	6.4
Materials	4.2
Other Assets Less Liabilities	0.0
Top Ten Fund Holdings (% of the Fund’s Net Assets) as of April 30, 2016
Security
Exxon Mobil Corp.	4.2
Johnson & Johnson	4.0
Microsoft Corp.	3.7
AT&T, Inc.	3.6
Procter & Gamble Co. (The)	3.3
Wal-Mart Stores, Inc.	3.2
Verizon Communications, Inc.	3.1
Coca-Cola Co. (The)	2.9
Chevron Corp.	2.9
PepsiCo, Inc.	2.3
Total	33.2

8

PowerShares Dividend Achievers™ Portfolio (PFM) (continued)

Growth of a $10,000 Investment

Fund Performance History as of April 30, 2016

	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 Broad Dividend AchieversTM Index		4.51	%		8.72	%		28.50	%		10.29	%		63.16	%		6.28	%		83.85	%		6.57	%		96.63	%
Russell 3000® Value Index		(0.68	)		9.34			30.72			9.85			59.97			5.58			72.12			6.25			90.51
Fund
NAV Return		3.98			8.13			26.42			9.68			58.69			5.65			73.25			5.93			84.42
Market Price Return		4.08			8.14			26.48			9.67			58.68			5.64			73.13			5.93			84.40

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, 2017. 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 their respective 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

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 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, NYSE Arca, Inc. 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, 2016, on a market price basis, the Fund returned 8.12%. On a net asset value (“NAV”) basis, the Fund returned 8.01%. During the same time period, the Index returned 8.48%. 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 4.69%. The Benchmark Index is an unmanaged index weighted by modified market capitalization based on the average performance of approximately 290 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, 2016, the banks industry contributed most significantly to the Fund’s return, followed by the capital markets industry. 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 7.26%), and Barclays Bank PLC, 8.13%, Series 5, a commercial banks company (portfolio average weight of 4.02%). Positions that detracted most significantly from the Fund’s return included MetLife, Inc., 6.50%, Series B, an insurance company (no longer held at fiscal year-end), and ING Groep NV, 7.38%, a banks company (portfolio average weight of 0.77%).

Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2016
Banks	71.3
Capital Markets	15.8
Insurance	7.5
Consumer Finance	5.3
Money Market Fund Plus Other Assets Less Liabilities	0.1
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2016
Security
HSBC Holdings PLC, 8.00%, Series 2	6.8
Barclays Bank PLC, 8.13%, Series 5	3.8
Wells Fargo & Co., 8.00%, Series J	3.2
BB&T Corp., 5.63%, Series E	2.8
PNC Financial Services Group, Inc. (The), 6.13%, Series P	2.7
HSBC Holdings PLC, 8.13%	2.5
Wells Fargo & Co., 5.85%	2.3
ING Groep NV, 6.38%	2.2
JPMorgan Chase & Co., 6.15%, Series BB	2.0
JPMorgan Chase & Co., 6.13%, Series Y	1.9
Total	30.2

* Excluding money market fund holdings.

10

PowerShares Financial Preferred Portfolio (PGF) (continued)

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

Fund Performance History as of April 30, 2016

	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		8.48	%		6.69	%		21.44	%		7.63	%		44.45	%		5.17	%		60.67	%
S&P U.S. Preferred Stock Index		4.69			5.53			17.54			6.56			37.38			4.95			57.52
Fund
NAV Return		8.01			6.42			20.52			7.09			40.87			4.20			47.30
Market Price Return		8.12			6.42			20.53			7.11			40.96			4.14			46.43

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, 2017. 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 their respective 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.

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 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-month 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, 2016, on a market price basis, the Fund returned 14.99%. On a net asset value (“NAV”) basis, the Fund returned 14.92%. During the same time period, the Index returned 15.56%. 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 8.85%. The Benchmark Index is an unmanaged index weighted by indicated dividend yield based on the average performance of approximately 99 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 oil, gas & consumable fuels industry and most underweight in the electric utilities industry during the fiscal year ended April 30, 2016. The majority of the Fund’s outperformance relative to the Benchmark Index during that period can be attributed to selection within and allocation to the gas utilities industry.

For the fiscal year ended April 30, 2016, the gas utilities industry contributed most significantly to the Fund’s return, followed by the tobacco and electric utilities industries, respectively. The personal products industry detracted most significantly from the Fund’s return, followed by the specialty retail and oil, gas & consumable fuels industries, respectively.

Positions that contributed most significantly to the Fund’s return included Murphy Oil Corp., an energy company (portfolio average weight of 1.17%), and Piedmont Natural Gas Co., Inc., a utilities company (no longer held at fiscal year-end). Positions that detracted most significantly from the Fund’s return included Williams Cos., Inc. (The), an energy company (no longer held at fiscal year-end), and ConocoPhillips, an energy company (no longer held at fiscal year-end).

12

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

Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2016
Oil, Gas & Consumable Fuels	18.4
Banks	10.9
Multi-Utilities	10.6
Electric Utilities	5.8
Tobacco	5.6
Gas Utilities	5.1
Semiconductors & Semiconductor Equipment	4.9
Food Products	4.5
Diversified Telecommunication Services	4.0
Machinery	4.0
Metals & Mining	3.8
Insurance	3.7
Capital Markets	3.7
Energy Equipment & Services	2.7
Personal Products	2.5
Media	2.1
IT Services	1.8
Electrical Equipment	1.8
Road & Rail	1.6
Household Products	1.4
Specialty Retail	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, 2016
Security
Murphy Oil Corp.	7.0
ONEOK, Inc.	5.2
Helmerich & Payne, Inc.	2.7
Chevron Corp.	2.6
CenterPoint Energy, Inc.	2.6
Vector Group Ltd.	2.5
Nu Skin Enterprises, Inc., Class A	2.5
Cullen/Frost Bankers, Inc.	2.4
AT&T, Inc.	2.2
Caterpillar, Inc.	2.1
Total	31.8

* Excluding money market fund holdings.

13

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

Growth of a $10,000 Investment

Fund Performance History as of April 30, 2016

	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		15.56	%		16.05	%		56.29	%		15.33	%		104.01	%		4.66	%		57.65	%		4.71	%		68.97	%
Dow Jones U.S. Select Dividend Index		8.85			11.82			39.80			13.06			84.77			6.96			95.93			7.24			121.69
Fund
NAV Return		14.92			15.45			53.88			14.70			98.53			4.21			51.05			4.25			60.65
Market Price Return		14.99			15.51			54.12			14.71			98.64			4.23			51.34			4.26			60.86

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, 2017. 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 Index performance results are based upon a hypothetical investment in their respective 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.

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”) or the London International Exchange, in addition to ADRs and non-US common or ordinary stock trading on the NASDAQ, NYSE or NYSE MKT. 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 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, 2016, on a market price basis, the Fund returned (17.63)%. On a net asset value (“NAV”) basis, the Fund returned (17.53)%. During the same time period, the Index returned (17.00)%. 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 MSCI EAFE^® Index (the “Benchmark Index”) returned (9.32)%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 930 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, 2016. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to stock selection in the energy and industrial sectors.

For the fiscal year ended April 30, 2016, the telecommunication services sector contributed most significantly to the Fund’s return, followed by the materials sector. The energy sector detracted most significantly from the Fund’s return, followed by the financials and industrials sectors, respectively.

Positions that contributed most significantly to the Fund’s return included Syngenta AG Sponsored ADR, a materials company (no longer held at fiscal year-end), and Franco-Nevada Corp., a materials company (portfolio average weight of 0.60%). Positions that detracted most significantly from the Fund’s return included Teekay Offshore Partners LP, an energy company (portfolio average weight of 3.26%), and Ensco PLC, an energy company (no longer held at fiscal year-end).

15

PowerShares International Dividend Achievers™ Portfolio (PID) (continued)

Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2016
Energy	27.4
Materials	17.4
Financials	17.4
Consumer Discretionary	9.0
Telecommunication Services	7.1
Industrials	7.0
Health Care	5.2
Consumer Staples	4.0
Information Technology	3.8
Utilities	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, 2016
Security
Teekay Offshore Partners LP	6.8
Teekay LNG Partners LP	4.5
BHP Billiton PLC ADR	4.4
Rio Tinto PLC ADR	4.2
BHP Billiton Ltd. ADR	4.0
BP PLC ADR	2.5
Potash Corp. of Saskatchewan, Inc.	2.4
Seaspan Corp.	2.3
Banco Latinoamericano de Comercio Exterior SA, Class E	2.3
HSBC Holdings PLC ADR	2.2
Total	35.6

* Excluding money market fund holdings.

16

PowerShares International Dividend Achievers™ Portfolio (PID) (continued)

Growth of a $10,000 Investment

Fund Performance History as of April 30, 2016

	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 International Dividend AchieversTM Index		(17.00	)%		(1.66	)%		(4.90	)%		1.03	%		5.24	%		2.47	%		27.69	%		3.68	%		46.84	%
MSCI EAFE® Index (Net)†		(9.32	)		1.48			4.49			1.69			8.75			1.61			17.37			3.37			42.23
Fund
NAV Return		(17.53	)		(2.17	)		(6.37	)		0.38			1.90			1.78			19.31			2.98			36.62
Market Price Return		(17.63	)		(2.27	)		(6.66	)		0.31			1.58			1.77			19.22			2.97			36.50

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, 2017. 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 their respective 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.

^†  Reflects reinvested dividends net of withholding taxes.

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

17

Schedule of Investments^(a)

PowerShares BuyBack Achievers^TM Portfolio (PKW)

April 30, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—23.1%
	13,887	American Public Education, Inc.(b)	$	321,623
	21,604	Asbury Automotive Group, Inc.(b)		1,309,635
	10,647	Ascent Capital Group, Inc., Series A(b)		160,450
	25,834	AutoZone, Inc.(b)		19,768,952
	141,534	Bed Bath & Beyond, Inc.(b)		6,683,235
	42,986	Big Lots, Inc.		1,971,338
	17,132	Bob Evans Farms, Inc.		780,191
	12,819	Bravo Brio Restaurant Group, Inc.(b)		94,476
	52,199	Bright Horizons Family Solutions, Inc.(b)		3,425,298
	49,408	Brinker International, Inc.		2,288,579
	13,696	Build-A-Bear Workshop, Inc.(b)		180,376
	169,343	CarMax, Inc.(b)(c)		8,966,712
	14,391	Carriage Services, Inc.		351,572
	364,950	CBS Corp., Class B		20,404,355
	115,670	Chico’s FAS, Inc.		1,458,599
	16,581	Children’s Place, Inc. (The)		1,291,826
	26,525	Conn’s, Inc.(b)(c)		364,454
	63,168	Crocs, Inc.(b)		527,453
	128,775	Dana Holding Corp.		1,665,061
	28,058	Deckers Outdoor Corp.(b)		1,622,033
	60,309	Diamond Resorts International, Inc.(b)(c)		1,279,154
	27,608	Dillard’s, Inc., Class A		1,944,984
	79,206	Dunkin’ Brands Group, Inc.		3,683,079
	38,378	Finish Line, Inc. (The), Class A		757,966
	41,640	Fossil Group, Inc.(b)		1,686,420
	343,602	Gap, Inc. (The)(c)		7,964,694
	18,439	Genesco, Inc.(b)		1,275,610
	64,233	GNC Holdings, Inc., Class A		1,564,716
	505,696	Groupon, Inc., Class A(b)(c)		1,830,620
	194,154	H&R Block, Inc.		3,929,677
	158,721	Harley-Davidson, Inc.		7,591,625
	19,750	Hibbett Sports, Inc.(b)(c)		712,975
	106,422	Houghton Mifflin Harcourt Co.(b)		2,182,715
	22,515	Hyatt Hotels Corp., Class A(b)		1,078,018
	30,006	Jack in the Box, Inc.		2,026,905
	13,054	Jamba, Inc.(b)(c)		169,571
	160,207	Kohl’s Corp.		7,097,170
	776,456	Lowe’s Cos., Inc.		59,026,185
	269,736	Macy’s, Inc.		10,678,848
	219,310	Marriott International, Inc., Class A(c)		15,371,438
	647,379	McDonald’s Corp.		81,886,970
	14,101	Movado Group, Inc.		397,789
	4,589	NACCO Industries, Inc., Class A		273,137
	14,374	Outerwall, Inc.(c)		593,790
	19,895	Panera Bread Co., Class A(b)		4,267,279
	72,389	Pier 1 Imports, Inc.		498,760
	299,688	PulteGroup, Inc.		5,511,262
	40,919	Regis Corp.(b)		559,363
	82,215	Scripps Networks Interactive, Inc., Class A		5,126,105
	168,482	Service Corp. International		4,493,415
	30,156	Shutterfly, Inc.(b)		1,386,573
	4,409,010	Sirius XM Holdings, Inc.(b)(c)		17,415,590
	42,007	Sonic Corp.		1,443,781
	49,761	Tenneco, Inc.(b)		2,652,261
	968,536	Twenty-First Century Fox, Inc., Class A		29,307,899

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Discretionary (continued)
	12,443	Universal Electronics, Inc.(b)	$	826,340
	101,575	Urban Outfitters, Inc.(b)		3,079,754
	32,535	Vera Bradley, Inc.(b)		570,664
	33,626	Visteon Corp.		2,678,983
	22,311	Vitamin Shoppe, Inc.(b)		610,652
	233,611	Wendy’s Co. (The)		2,537,015
	97,077	Wyndham Worldwide Corp.		6,887,613
	23,927	ZAGG, Inc.(b)		191,655
	22,053	Zumiez, Inc.(b)(c)		370,049
				379,055,287
		Consumer Staples—5.4%
	508,002	Archer-Daniels-Midland Co.		20,289,600
	44,446	Fresh Del Monte Produce, Inc.		1,922,734
	14,438	MGP Ingredients, Inc.		381,452
	1,347,219	Mondelez International, Inc., Class A		57,876,528
	280,855	Whole Foods Market, Inc.		8,167,264
				88,637,578
		Energy—2.8%
	152,777	HollyFrontier Corp.		5,438,861
	325,140	National Oilwell Varco, Inc.		11,718,046
	84,660	Oceaneering International, Inc.		3,102,789
	5,676	REX American Resources Corp.(b)		308,604
	14,852	SEACOR Holdings, Inc.(b)		872,852
	40,638	Tidewater, Inc.(c)		355,989
	406,448	Valero Energy Corp.		23,927,594
				45,724,735
		Financials—17.9%
	362,550	Aflac, Inc.		25,005,073
	327,302	Allstate Corp. (The)		21,290,995
	980,969	American International Group, Inc.		54,757,690
	145,622	Ameriprise Financial, Inc.		13,965,150
	84,229	Anworth Mortgage Asset Corp. REIT		397,561
	105,627	Arch Capital Group Ltd. (Bermuda)(b)		7,445,647
	31,737	ARMOUR Residential REIT, Inc. REIT		675,363
	54,946	Assurant, Inc.		4,646,783
	117,524	Assured Guaranty Ltd.		3,040,346
	80,651	Axis Capital Holdings Ltd.		4,296,279
	26,838	Capital Bank Financial Corp., Class A		811,313
	21,172	Cash America International, Inc.		782,517
	27,108	Central Pacific Financial Corp.		632,701
	162,407	Chimera Investment Corp. REIT		2,306,179
	155,053	CNO Financial Group, Inc.		2,848,324
	92,630	Cowen Group, Inc., Class A(b)		322,816
	358,367	Discover Financial Services		20,165,311
	42,354	Dynex Capital, Inc. REIT		275,301
	6,389	FBR & Co.		118,196
	150,217	Fulton Financial Corp.		2,101,536
	68,970	Hancock Holding Co.		1,791,151
	343,201	Hartford Financial Services Group, Inc. (The)		15,231,260
	38,465	Hersha Hospitality Trust REIT		741,990
	15,889	HomeTrust Bancshares, Inc.(b)		294,741
	78,627	KCG Holdings, Inc., Class A(b)		1,077,190
	93,188	Legg Mason, Inc.		2,992,267

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

18

PowerShares BuyBack Achievers^TM Portfolio (PKW) (continued)

April 30, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	293,306	Loews Corp.	$	11,638,382
	118,772	MBIA, Inc.(b)		926,422
	168,611	Moody’s Corp.		16,139,445
	85,097	MSCI, Inc.		6,462,266
	25,438	National Bank Holdings Corp., Class A		508,506
	296,602	Navient Corp.		4,054,549
	41,778	Northfield Bancorp, Inc.		662,599
	125,507	Piedmont Office Realty Trust, Inc., Class A REIT		2,498,844
	13,925	Piper Jaffray Cos.(b)		580,812
	41,587	Primerica, Inc.		2,061,052
	45,925	ProAssurance Corp.		2,192,000
	1,104,929	Regions Financial Corp.		10,364,234
	64,327	St. Joe Co. (The)(b)		1,083,910
	57,833	Talmer Bancorp, Inc., Class A		1,121,960
	255,212	Travelers Cos., Inc. (The)		28,047,799
	73,015	Validus Holdings Ltd.		3,365,261
	180,199	Voya Financial, Inc.		5,851,061
	26,827	Walker & Dunlop, Inc.(b)		591,535
	79,220	Washington Federal, Inc.		1,924,254
	25,278	Waterstone Financial, Inc.		354,398
	4,805	White Mountains Insurance Group Ltd.		3,988,150
	7,720	World Acceptance Corp.(b)(c)		334,971
				292,766,090
		Health Care—8.9%
	195,036	AmerisourceBergen Corp.		16,597,564
	1,578	Atrion Corp.		626,939
	189,194	Biogen, Inc.(b)		52,026,458
	11,241	Cutera, Inc.(b)		131,070
	547,496	Express Scripts Holding Co.(b)		40,366,880
	342,415	HCA Holdings, Inc.(b)		27,605,497
	21,384	Magellan Health, Inc.(b)		1,506,717
	80,388	MEDNAX, Inc.(b)		5,730,860
	26,403	PharMerica Corp.(b)		624,167
	20,489	Triple-S Management Corp., Class B(b)		533,534
				145,749,686
		Industrials—23.0%
	30,064	AAR Corp.		722,739
	92,563	ACCO Brands Corp.(b)		883,051
	50,964	Actuant Corp., Class A		1,361,248
	71,341	AGCO Corp.		3,814,603
	521,726	American Airlines Group, Inc.		18,098,675
	17,030	American Railcar Industries, Inc.(c)		698,400
	6,204	American Science & Engineering, Inc.		177,745
	82,437	Avis Budget Group, Inc.(b)		2,069,169
	563,288	Boeing Co. (The)		75,931,222
	92,631	Cintas Corp.		8,316,411
	14,191	CIRCOR International, Inc.		801,082
	7,724	CRA International, Inc.(b)		167,611
	272,817	Deere & Co.(c)		22,946,638
	673,559	Delta Air Lines, Inc.		28,067,204
	55,679	DigitalGlobe, Inc.(b)		1,233,847
	134,208	Dover Corp.		8,817,466
	556,418	Emerson Electric Co.		30,397,115
	18,842	EnPro Industries, Inc.		1,103,764

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrials (continued)
	25,635	Esterline Technologies Corp.(b)	$	1,760,099
	120,443	Fluor Corp.		6,583,414
	47,709	Graco, Inc.		3,739,908
	41,602	Griffon Corp.		657,728
	312,210	Illinois Tool Works, Inc.		32,632,189
	106,018	Jacobs Engineering Group, Inc.(b)		4,726,282
	24,600	Kforce, Inc.		467,646
	46,551	Kirby Corp.(b)		2,970,885
	67,072	L-3 Communications Holdings, Inc.		8,821,980
	38,675	Lennox International, Inc.		5,219,191
	60,033	Lincoln Electric Holdings, Inc.		3,762,268
	9,634	Lindsay Corp.(c)		736,616
	62,457	ManpowerGroup, Inc.		4,811,063
	288,009	Masco Corp.		8,844,756
	20,637	McGrath RentCorp		503,130
	79,049	Meritor, Inc.(b)		671,916
	28,867	Moog, Inc., Class A(b)		1,410,442
	49,307	Nordson Corp.		3,783,326
	156,550	Northrop Grumman Corp.		32,290,003
	63,255	Oshkosh Corp.		3,090,007
	6,163	P.A.M. Transportation Services, Inc.(b)(c)		152,288
	116,890	Parker-Hannifin Corp.		13,561,578
	9,827	Powell Industries, Inc.		305,816
	29,606	Quanex Building Products Corp.		557,777
	132,294	Quanta Services, Inc.(b)		3,138,014
	50,721	Tetra Tech, Inc.		1,491,197
	68,683	Timken Co. (The)		2,447,175
	77,888	United Rentals, Inc.(b)		5,213,044
	24,579	Universal Logistics Holdings, Inc.		350,497
	19,720	Valmont Industries, Inc.		2,768,294
	53,274	W.W. Grainger, Inc.(c)		12,493,818
	36,510	WESCO International, Inc.(b)(c)		2,146,423
				377,716,760
		Information Technology—13.7%
	42,599	ADTRAN, Inc.		823,013
	13,660	Alliance Fiber Optic Products, Inc.(b)		252,983
	978,293	Applied Materials, Inc.		20,025,658
	72,148	Aspen Technology, Inc.(b)		2,743,789
	951,488	Corning, Inc.		17,764,281
	87,325	Cree, Inc.(b)		2,140,336
	29,108	DST Systems, Inc.		3,512,753
	29,111	Ebix, Inc.		1,400,821
	22,415	EMCORE Corp.(b)		127,766
	192,883	Fiserv, Inc.(b)		18,848,527
	71,240	Gartner, Inc.(b)		6,209,991
	32,110	Insight Enterprises, Inc.(b)		793,438
	222,199	Intuit, Inc.		22,417,657
	331,026	Juniper Networks, Inc.		7,746,008
	60,878	Kulicke & Soffa Industries, Inc. (Singapore)(b)		652,612
	151,136	Motorola Solutions, Inc.		11,363,916
	250,112	NetApp, Inc.		5,912,648
	28,048	NETGEAR, Inc.(b)		1,189,235
	356,541	ON Semiconductor Corp.(b)		3,376,443
	29,115	Plantronics, Inc.		1,119,472
	1,293,363	QUALCOMM, Inc.		65,340,699

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

19

PowerShares BuyBack Achievers^TM Portfolio (PKW) (continued)

April 30, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	112,569	Rackspace Hosting, Inc.(b)	$	2,574,453
	72,065	Rovi Corp.(b)		1,269,785
	26,843	Rudolph Technologies, Inc.(b)		372,312
	22,681	ScanSource, Inc.(b)		922,663
	30,357	Tech Data Corp.(b)		2,085,222
	111,538	Teradata Corp.(b)		2,821,911
	176,495	Teradyne, Inc.		3,337,521
	22,947	Ultratech, Inc.(b)		497,720
	94,711	VeriSign, Inc.(b)(c)		8,183,030
	876,351	Xerox Corp.		8,412,970
				224,239,633
		Materials—4.3%
	40,520	Carpenter Technology Corp.		1,434,813
	57,189	Chemtura Corp.(b)		1,592,714
	15,042	Clearwater Paper Corp.(b)		898,609
	16,688	Innophos Holdings, Inc.		616,788
	26,504	Kraton Performance Polymers, Inc.(b)		601,906
	380,915	Monsanto Co.		35,684,117
	304,994	Mosaic Co. (The)		8,536,782
	73,807	PolyOne Corp.		2,655,576
	62,177	Reliance Steel & Aluminum Co.		4,599,233
	77,428	Resolute Forest Products, Inc.(b)		449,857
	169,572	Sealed Air Corp.		8,030,930
	38,854	Sensient Technologies Corp.		2,612,931
	53,023	Worthington Industries, Inc.		2,001,618
				69,715,874
		Telecommunication Services—0.0%
	30,691	General Communication, Inc., Class A(b)		518,678
		Utilities—0.9%
	570,796	AES Corp. (The)		6,370,083
	308,580	Calpine Corp.(b)		4,869,393
	273,300	NRG Energy, Inc.		4,126,830
				15,366,306
		Total Common Stocks and Other Equity Interests (Cost $1,571,533,432)		1,639,490,627
		Money Market Fund—0.1%
	861,583	Invesco Premier Portfolio—Institutional Class, 0.39%(d) (Cost $861,583)		861,583
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $1,572,395,015)—100.1%		1,640,352,210

Number of Shares			Value
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—4.2%
	70,119,602	Invesco Liquid Assets Portfolio—Institutional Class, 0.44%(d)(e) (Cost $70,119,602)	$	70,119,602
		Total Investments (Cost $1,642,514,617)—104.3%		1,710,471,812
		Other assets less liabilities—(4.3)%		(71,037,587	)
		Net Assets—100.0%	$	1,639,434,225

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, 2016.

^(d)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of April 30, 2016.

^(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 2H.

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

20

Schedule of Investments^(a)

PowerShares Dividend Achievers^TM Portfolio (PFM)

April 30, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—7.9%
	3,141	Aaron’s, Inc.	$	82,326
	14,011	Best Buy Co., Inc.		449,473
	902	Bob Evans Farms, Inc.		41,077
	1,038	Cracker Barrel Old Country Store, Inc.		151,974
	17,389	Gap, Inc. (The)		403,077
	6,469	Genuine Parts Co.		620,830
	5,399	Hasbro, Inc.		456,971
	1,154	International Speedway Corp., Class A		38,647
	2,098	John Wiley & Sons, Inc., Class A		104,040
	5,867	Leggett & Platt, Inc.		289,184
	39,372	Lowe’s Cos., Inc.		2,993,059
	39,009	McDonald’s Corp.		4,934,248
	1,631	Meredith Corp.		83,687
	1,391	Monro Muffler Brake, Inc.		96,285
	58,404	NIKE, Inc., Class B		3,442,332
	2,810	Polaris Industries, Inc.		275,043
	17,523	Ross Stores, Inc.		994,956
	1,518	StoneMor Partners LP		37,039
	26,056	Target Corp.		2,071,452
	5,543	Tiffany & Co.		395,493
	28,968	TJX Cos., Inc. (The)		2,196,354
	18,445	VF Corp.		1,162,957
	17,683	Yum! Brands, Inc.		1,406,860
				22,727,364
		Consumer Staples—23.6%
	84,711	Altria Group, Inc.		5,312,227
	1,209	Andersons, Inc. (The)		40,514
	25,695	Archer-Daniels-Midland Co.		1,026,258
	5,054	Brown-Forman Corp., Class B		486,801
	6,100	Bunge Ltd.		381,250
	1,685	Casey’s General Stores, Inc.		188,720
	5,613	Church & Dwight Co., Inc.		520,325
	5,601	Clorox Co. (The)		701,413
	187,319	Coca-Cola Co. (The)		8,391,891
	38,625	Colgate-Palmolive Co.		2,739,285
	19,027	Costco Wholesale Corp.		2,818,470
	47,527	CVS Health Corp.		4,776,463
	9,185	Flowers Foods, Inc.		175,985
	25,672	General Mills, Inc.		1,574,720
	22,864	Hormel Foods Corp.		881,407
	807	J & J Snack Foods Corp.		81,612
	5,178	JM Smucker Co. (The)		657,502
	15,154	Kellogg Co.		1,163,979
	15,615	Kimberly-Clark Corp.		1,954,842
	1,183	Lancaster Colony Corp.		137,820
	4,988	McCormick & Co., Inc.		467,775
	2,411	Nu Skin Enterprises, Inc., Class A		98,296
	62,537	PepsiCo, Inc.		6,438,810
	117,015	Procter & Gamble Co. (The)		9,375,242
	61,755	Reynolds American, Inc.		3,063,048
	24,428	Sysco Corp.		1,125,398
	1,658	Tootsie Roll Industries, Inc., Class A		59,091
	983	Universal Corp.		53,623
	5,352	Vector Group Ltd.		115,603
	46,673	Walgreens Boots Alliance, Inc.		3,700,235

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Staples (continued)
	138,532	Wal-Mart Stores, Inc.	$	9,263,635
				67,772,240
		Energy—10.7%
	3,218	Alliance Resource Partners LP		50,362
	5,613	Buckeye Partners LP		404,136
	81,476	Chevron Corp.		8,325,218
	87,451	Enterprise Products Partners LP		2,334,067
	23,791	EOG Resources, Inc.		1,965,612
	135,239	Exxon Mobil Corp.		11,955,128
	4,753	Genesis Energy LP		154,092
	4,670	Helmerich & Payne, Inc.		308,780
	2,534	Holly Energy Partners LP		86,713
	9,855	Magellan Midstream Partners LP		710,250
	7,443	Murphy Oil Corp.		266,013
	33,048	Occidental Petroleum Corp.		2,533,129
	9,209	ONEOK Partners LP		326,551
	9,085	ONEOK, Inc.		328,423
	17,208	Plains All American Pipeline LP		394,752
	11,799	Sunoco Logistics Partners LP		345,475
	2,783	TC PipeLines LP		152,425
	696	TransMontaigne Partners LP		28,466
				30,669,592
		Financials—7.0%
	1,118	1st Source Corp.		38,504
	18,172	Aflac, Inc.		1,253,323
	3,542	American Equity Investment Life Holding Co.		49,588
	3,746	American Financial Group, Inc.		258,886
	7,311	Ameriprise Financial, Inc.		701,125
	2,801	Assurant, Inc.		236,881
	4,106	Axis Capital Holdings Ltd.		218,727
	673	BancFirst Corp.		41,975
	3,924	Bank of the Ozarks, Inc.		162,061
	2,861	BOK Financial Corp.		172,175
	5,993	Brown & Brown, Inc.		210,414
	19,974	Chubb Ltd.		2,354,136
	7,110	Cincinnati Financial Corp.		469,331
	4,188	Commerce Bancshares, Inc.		196,082
	1,895	Community Bank System, Inc.		74,985
	757	Community Trust Bancorp, Inc.		27,154
	2,682	Cullen/Frost Bankers, Inc.		171,621
	6,338	Digital Realty Trust, Inc. REIT		557,617
	4,992	Eaton Vance Corp.		172,374
	3,660	Equity LifeStyle Properties, Inc. REIT		250,673
	1,994	Erie Indemnity Co., Class A		188,214
	2,830	Essex Property Trust, Inc. REIT		623,874
	1,779	FactSet Research Systems, Inc.		268,184
	3,013	Federal Realty Investment Trust REIT		458,217
	25,641	Franklin Resources, Inc.		957,435
	1,849	Hanover Insurance Group, Inc. (The)		158,570
	20,142	HCP, Inc. REIT		681,404
	478	Infinity Property & Casualty Corp.		38,317
	18,017	Invesco Ltd.(b)		558,707
	2,387	Mercury General Corp.		126,272
	1,659	National Health Investors, Inc. REIT		112,961

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

21

PowerShares Dividend Achievers^TM Portfolio (PFM) (continued)

April 30, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	6,098	National Retail Properties, Inc. REIT	$	266,848
	11,338	Old Republic International Corp.		209,640
	8,140	OMEGA Healthcare Investors, Inc. REIT		274,888
	13,431	People’s United Financial, Inc.		208,181
	3,023	Prosperity Bancshares, Inc.		159,524
	10,840	Realty Income Corp. REIT		641,728
	1,865	RenaissanceRe Holdings Ltd. (Bermuda)		206,847
	1,884	RLI Corp.		117,147
	11,478	S&P Global, Inc.		1,226,424
	7,080	SEI Investments Co.		340,406
	1,097	Southside Bancshares, Inc.		32,043
	10,738	T. Rowe Price Group, Inc.		808,464
	4,148	Tanger Factory Outlet Centers, Inc. REIT		145,512
	647	Tompkins Financial Corp.		42,275
	5,243	Torchmark Corp.		303,517
	12,762	Travelers Cos., Inc. (The)		1,402,544
	2,139	UMB Financial Corp.		119,249
	3,013	United Bankshares, Inc.		116,573
	577	Universal Health Realty Income Trust REIT		31,504
	1,143	Urstadt Biddle Properties, Inc., Class A REIT		23,500
	5,300	W.R. Berkley Corp.		296,800
	15,365	Welltower, Inc. REIT		1,066,638
	1,097	Westamerica Bancorp.		53,446
	376	Westwood Holdings Group, Inc.		21,639
	4,519	WP Carey, Inc. REIT		276,066
				20,181,190
		Health Care—9.0%
	63,741	Abbott Laboratories		2,479,525
	8,889	AmerisourceBergen Corp.		756,454
	79	Atrion Corp.		31,387
	9,164	Becton, Dickinson and Co.		1,477,787
	3,186	C.R. Bard, Inc.		675,974
	14,249	Cardinal Health, Inc.		1,117,976
	103,026	Johnson & Johnson		11,547,154
	60,838	Medtronic PLC		4,815,328
	648	National Healthcare Corp.		41,764
	2,708	Owens & Minor, Inc.		98,544
	6,196	Perrigo Co. PLC		598,967
	3,716	STERIS PLC		262,610
	16,137	Stryker Corp.		1,759,094
	3,127	West Pharmaceutical Services, Inc.		222,642
				25,885,206
		Industrials—13.7%
	26,177	3M Co.		4,381,506
	3,231	A.O. Smith Corp.		249,498
	2,418	ABM Industries, Inc.		77,787
	2,016	Brady Corp., Class A		53,404
	6,197	C.H. Robinson Worldwide, Inc.		439,801
	2,774	Carlisle Cos., Inc.		282,671
	25,195	Caterpillar, Inc.		1,958,155
	4,675	Cintas Corp.		419,721
	2,096	CLARCOR, Inc.		123,182
	2,519	Crane Co.		139,981

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrials (continued)
	41,671	CSX Corp.	$	1,136,368
	7,542	Cummins, Inc.		882,640
	13,643	Deere & Co.		1,147,513
	5,735	Donaldson Co., Inc.		187,420
	6,707	Dover Corp.		440,650
	27,825	Emerson Electric Co.		1,520,080
	7,879	Expeditors International of Washington, Inc.		390,877
	12,483	Fastenal Co.		584,080
	11,925	FedEx Corp.		1,968,937
	2,002	Franklin Electric Co., Inc.		63,243
	859	G&K Services, Inc., Class A		60,688
	13,463	General Dynamics Corp.		1,891,821
	1,129	Gorman-Rupp Co. (The)		31,939
	2,381	Graco, Inc.		186,647
	3,123	Healthcare Services Group, Inc.		118,206
	15,739	Illinois Tool Works, Inc.		1,645,040
	3,872	ITT Corp.		148,569
	4,876	J.B. Hunt Transport Services, Inc.		404,123
	3,367	L-3 Communications Holdings, Inc.		442,862
	3,059	Lincoln Electric Holdings, Inc.		191,708
	481	Lindsay Corp.		36,777
	13,217	Lockheed Martin Corp.		3,071,366
	1,426	Matthews International Corp., Class A		75,065
	1,030	McGrath RentCorp		25,111
	1,614	MSA Safety, Inc.		77,617
	2,082	MSC Industrial Direct Co., Inc., Class A		161,355
	2,462	Nordson Corp.		188,909
	12,902	Norfolk Southern Corp.		1,162,599
	7,829	Northrop Grumman Corp.		1,614,810
	5,841	Parker-Hannifin Corp.		677,673
	1,577	Raven Industries, Inc.		25,374
	12,936	Raytheon Co.		1,634,464
	1,929	Regal Beloit Corp.		124,266
	14,921	Republic Services, Inc.		702,331
	5,675	Robert Half International, Inc.		217,409
	9,467	Rollins, Inc.		254,378
	4,369	Roper Technologies, Inc.		769,337
	2,310	Ryder System, Inc.		159,205
	6,591	Stanley Black & Decker, Inc.		737,665
	765	Tennant Co.		40,859
	2,372	Toro Co. (The)		205,059
	36,189	United Technologies Corp.		3,777,046
	988	Valmont Industries, Inc.		138,695
	2,671	W.W. Grainger, Inc.		626,403
	19,281	Waste Management, Inc.		1,133,530
				39,206,420
		Information Technology—10.7%
	27,167	Accenture PLC, Class A		3,067,698
	13,413	Analog Devices, Inc.		755,420
	19,792	Automatic Data Processing, Inc.		1,750,404
	631	Badger Meter, Inc.		45,009
	490	Cass Information Systems, Inc.		24,240
	1,898	Daktronics, Inc.		16,513
	5,389	Harris Corp.		431,174
	41,573	International Business Machines Corp.		6,067,164

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

22

PowerShares Dividend Achievers^TM Portfolio (PFM) (continued)

April 30, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	3,408	Jack Henry & Associates, Inc.	$	276,150
	10,355	Linear Technology Corp.		460,590
	12,391	Maxim Integrated Products, Inc.		442,607
	156	Mesa Laboratories, Inc.		15,722
	8,814	Microchip Technology, Inc.		428,272
	213,039	Microsoft Corp.		10,624,255
	64,677	QUALCOMM, Inc.		3,267,482
	43,493	Texas Instruments, Inc.		2,480,841
	11,056	Xilinx, Inc.		476,292
				30,629,833
		Materials—4.2%
	9,330	Air Products & Chemicals, Inc.		1,361,154
	4,855	Albemarle Corp.		321,207
	2,719	AptarGroup, Inc.		206,644
	4,093	Bemis Co., Inc.		205,387
	1,457	Compass Minerals International, Inc.		109,217
	12,807	Ecolab, Inc.		1,472,549
	2,159	H.B. Fuller Co.		96,550
	3,472	International Flavors & Fragrances, Inc.		414,800
	19,048	Monsanto Co.		1,784,417
	13,756	Nucor Corp.		684,774
	11,542	PPG Industries, Inc.		1,274,121
	12,324	Praxair, Inc.		1,447,577
	2,824	Royal Gold, Inc.		176,839
	5,743	RPM International, Inc.		290,194
	1,942	Sensient Technologies Corp.		130,599
	3,989	Sherwin-Williams Co. (The)		1,146,079
	2,613	Silgan Holdings, Inc.		132,583
	4,365	Sonoco Products Co.		204,675
	963	Stepan Co.		59,022
	3,418	Valspar Corp. (The)		364,666
	5,630	Westlake Chemical Corp.		282,570
				12,165,624
		Telecommunication Services—6.8%
	266,236	AT&T, Inc.		10,335,281
	694	Atlantic Tele-Network, Inc.		49,906
	4,398	Telephone & Data Systems, Inc.		130,049
	176,258	Verizon Communications, Inc.		8,978,582
				19,493,818
		Utilities—6.4%
	4,909	Alliant Energy Corp.		346,183
	1,581	American States Water Co.		65,912
	4,020	AmeriGas Partners LP		174,267
	7,660	Aqua America, Inc.		242,516
	4,418	Atmos Energy Corp.		320,526
	2,702	Avista Corp.		108,269
	2,212	Black Hills Corp.		134,025
	2,071	California Water Service Group		57,843
	18,616	CenterPoint Energy, Inc.		399,313
	660	Chesapeake Utilities Corp.		39,283
	483	Connecticut Water Service, Inc.		22,711
	12,702	Consolidated Edison, Inc.		947,569
	25,805	Dominion Resources, Inc.		1,844,283
	29,783	Duke Energy Corp.		2,346,305

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Utilities (continued)
	14,096	Edison International	$	996,728
	13,724	Eversource Energy		774,583
	8,448	MDU Resources Group, Inc.		169,467
	1,499	MGE Energy, Inc.		74,725
	3,669	National Fuel Gas Co.		203,629
	3,718	New Jersey Resources Corp.		132,658
	19,928	NextEra Energy, Inc.		2,343,134
	1,188	Northwest Natural Gas Co.		61,230
	2,081	NorthWestern Corp.		118,284
	29,213	PPL Corp.		1,099,577
	6,179	SCANA Corp.		424,436
	883	SJW Corp.		30,384
	3,078	South Jersey Industries, Inc.		85,907
	39,495	Southern Co. (The)		1,978,700
	1,878	Spire, Inc.		120,117
	7,438	UGI Corp.		299,305
	3,577	Vectren Corp.		174,736
	13,657	WEC Energy Group, Inc.		794,974
	6,123	Westar Energy, Inc.		316,008
	2,153	WGL Holdings, Inc.		146,167
	21,960	Xcel Energy, Inc.		879,059
				18,272,813
		Total Investments (Cost $234,657,939)—100.0%		287,004,100
		Other assets less liabilities—0.0%		48,368
		Net Assets—100.0%	$	287,052,468

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, 2016

Number of Shares			Value
		Preferred Stocks and Other Equity Interests—99.9%
		Banks—71.3%
	547,630	Bank of America Corp., 6.00%, Series EE	$	13,822,181
	889,478	Bank of America Corp., 6.20%, Series CC		22,921,848
	535,365	Bank of America Corp., 6.20%, Series D(b)		13,780,295
	79,586	Bank of America Corp., 6.38%, Series 3		2,052,523
	1,010,761	Bank of America Corp., 6.50%, Series Y		26,684,090
	1,094,933	Bank of America Corp., 6.63%, Series W		29,256,610
	697,278	Barclays Bank PLC, 6.63%, Series 2 (United Kingdom)(b)		17,989,772
	865,800	Barclays Bank PLC, 7.10%, Series 3 (United Kingdom)		22,441,536
	664,108	Barclays Bank PLC, 7.75%, Series 4 (United Kingdom)		17,419,553
	2,375,275	Barclays Bank PLC, 8.13%, Series 5 (United Kingdom)(b)		62,659,754
	59,035	BB&T Corp., 5.20%, Series G		1,490,634
	351,358	BB&T Corp., 5.63%(b)		9,012,333
	1,765,167	BB&T Corp., 5.63%, Series E		45,400,095
	427,592	BB&T Corp., 5.85%		11,258,497
	320,167	Citigroup, Inc., 5.80%, Series C		8,317,939
	607,029	Citigroup, Inc., 6.30%, Series S(b)		15,697,770
	1,133,870	Citigroup, Inc., 6.88%, Series K		31,283,473
	883,487	Citigroup, Inc., 7.13%, Series J		24,702,297
	408,791	Fifth Third Bancorp, 6.63%, Series I		11,977,576
	306,480	First Niagara Financial Group, Inc., 8.63%, Series B		8,204,470
	4,228,772	HSBC Holdings PLC, 8.00%, Series 2 (United Kingdom)		112,062,458
	1,487,176	HSBC Holdings PLC, 8.13% (United Kingdom)(b)		40,436,315
	301,226	HSBC USA, Inc., 6.50%, Series H		7,840,913
	323,983	Huntington Bancshares, Inc., 6.25%, Series D		8,530,472
	771,303	ING Groep NV, 6.13% (Netherlands)		19,753,070
	167,678	ING Groep NV, 6.20% (Netherlands)		4,322,739
	1,372,714	ING Groep NV, 6.38% (Netherlands)		35,663,110
	750,274	JPMorgan Chase & Co., 5.45%, Series P		19,116,982
	1,127,712	JPMorgan Chase & Co., 5.50%, Series O(b)		28,519,836
	1,123,451	JPMorgan Chase & Co., 6.10%, Series AA(b)		29,355,775
	1,211,026	JPMorgan Chase & Co., 6.13%, Series Y(b)		31,619,889
	1,221,538	JPMorgan Chase & Co., 6.15%, Series BB		31,931,003
	120,146	JPMorgan Chase & Co., 6.30%, Series W		3,165,847
	592,425	JPMorgan Chase & Co., 6.70%, Series T		16,368,703
	301,010	KKR Financial Holdings LLC, 7.38%, Series A		7,871,412
	1,545,516	PNC Financial Services Group, Inc. (The), 6.13%, Series P(b)		44,680,868
	398,052	Regions Financial Corp., 6.38%, Series A		10,428,962
	443,720	Regions Financial Corp., 6.38%, Series B		12,184,551
	490,401	Royal Bank of Scotland Group PLC, 5.75%, Series L (United Kingdom)		11,867,704
	130,861	Royal Bank of Scotland Group PLC, 6.13%, Series R (United Kingdom)(b)		3,221,798
	448,433	Royal Bank of Scotland Group PLC, 6.60%, Series S (United Kingdom)		11,269,121

Number of Shares			Value
		Preferred Stocks and Other Equity Interests (continued)
		Banks (continued)
	1,033,358	Royal Bank of Scotland Group PLC, 7.25%, Series T (United Kingdom)	$	26,061,289
	396,882	SunTrust Banks, Inc., 5.88%, Series E(b)		10,398,308
	751,943	U.S. Bancorp, 5.15%, Series H(b)		19,738,504
	452,906	U.S. Bancorp, 6.00%, Series G		11,961,247
	993,414	U.S. Bancorp, 6.50%, Series F(b)		29,365,318
	900,435	Wells Fargo & Co., 5.20%		23,222,219
	427,585	Wells Fargo & Co., 5.25%, Series P		11,070,176
	879,639	Wells Fargo & Co., 5.70%, Series W(b)		22,580,333
	1,415,592	Wells Fargo & Co., 5.85%		37,272,537
	509,779	Wells Fargo & Co., 6.00%, Series T		13,575,415
	619,258	Wells Fargo & Co., 6.00%, Series V		16,422,722
	179,860	Wells Fargo & Co., 6.63%		5,237,523
	1,877,706	Wells Fargo & Co., 8.00%, Series J		52,894,978
				1,166,385,343
		Capital Markets—15.8%
	511,689	Bank of New York Mellon Corp. (The), 5.20%		13,124,823
	429,795	Charles Schwab Corp. (The), 5.95%, Series D		11,161,776
	419,571	Charles Schwab Corp. (The), 6.00%, Series B		11,026,326
	518,634	Charles Schwab Corp. (The), 6.00%, Series C(b)		13,982,373
	903,979	Goldman Sachs Group, Inc. (The), 5.50%, Series J		22,716,992
	896,001	Goldman Sachs Group, Inc. (The), 5.95%(b)		22,991,386
	470,678	Goldman Sachs Group, Inc. (The), 6.20%, Series B		11,992,875
	198,125	Goldman Sachs Group, Inc. (The), 6.30%, Series N		5,161,156
	398,016	Goldman Sachs Group, Inc. (The), 6.38%, Series K(b)		11,144,448
	654,041	Morgan Stanley, 6.38%, Series I		17,345,167
	374,302	Morgan Stanley, 6.63%, Series G		10,121,126
	835,644	Morgan Stanley, 6.88%, Series F		22,930,071
	860,474	Morgan Stanley, 7.13%, Series E		24,738,628
	324,876	Northern Trust Corp., 5.85%, Series C		8,774,901
	566,049	State Street Corp., 5.25%, Series C		14,841,805
	181,144	State Street Corp., 5.35%, Series G		4,762,276
	666,001	State Street Corp., 5.90%, Series D(b)		18,095,247
	496,174	State Street Corp., 6.00%		13,406,621
				258,317,997
		Consumer Finance—5.3%
	347,866	Ally Financial, Inc., 8.50%, Series A		8,689,693
	824,143	Capital One Financial Corp., 6.00%, Series B		21,345,304
	456,718	Capital One Financial Corp., 6.20%, Series F		12,061,923
	379,248	Capital One Financial Corp., 6.25%, Series C		10,042,487
	269,169	Capital One Financial Corp., 6.70%, Series D		7,385,997

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

24

PowerShares Financial Preferred Portfolio (PGF) (continued)

April 30, 2016

Number of Shares			Value
		Preferred Stocks and Other Equity Interests (continued)
		Consumer Finance (continued)
	511,538	Discover Financial Services, 6.50%, Series B	$	13,530,180
	530,311	HSBC Finance Corp., 6.36%, Series B		13,756,267
				86,811,851
		Insurance—7.5%
	758,577	Aegon NV, 6.38% (Netherlands)		19,510,601
	261,701	Aegon NV, 6.50% (Netherlands)		6,843,481
	308,340	Allstate Corp. (The), 5.63%(b)		8,204,927
	124,043	Allstate Corp. (The), 6.25%, Series F		3,412,423
	676,628	Allstate Corp. (The), 6.63%, Series E		18,641,101
	301,038	Allstate Corp. (The), 6.75%, Series C		8,389,929
	287,725	Arch Capital Group Ltd., 6.75%, Series C (Bermuda)		7,581,554
	230,765	Aspen Insurance Holdings Ltd., 5.95% (Bermuda)		6,149,887
	348,029	Axis Capital Holdings Ltd., 6.88%, Series C		9,177,525
	103,831	PartnerRe Ltd., 5.88%, Series F (Bermuda)		2,634,193
	437,311	PartnerRe Ltd., 7.25%, Series E (Bermuda)		11,418,190
	326,792	Prudential PLC, 6.50% (United Kingdom)		8,552,147
	196,201	Prudential PLC, 6.75% (United Kingdom)		5,179,706
	267,987	RenaissanceRe Holdings Ltd., 5.38%, Series E (Bermuda)		6,796,150
				122,491,814
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $1,536,927,572)—99.9%		1,634,007,005
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—1.0%
	17,206,270	Invesco Liquid Assets Portfolio—Institutional Class, 0.44%(c)(d) (Cost $17,206,270)		17,206,270
		Total Investments (Cost $1,554,133,842)—100.9%		1,651,213,275
		Other assets less liabilities—(0.9)%		(14,834,822	)
		Net Assets—100.0%	$	1,636,378,453

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, 2016.

^(c)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of April 30, 2016.

^(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 2H.

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

United Kingdom 20.7 % 

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^TM Portfolio (PEY)

April 30, 2016

Number of Shares			Value
		Common Stocks—100.0%
		Banks—10.9%
	216,465	BOK Financial Corp.(b)	$	13,026,864
	270,563	Community Bank System, Inc.		10,706,178
	280,631	Cullen/Frost Bankers, Inc.(b)		17,957,578
	954,537	People’s United Financial, Inc.(b)		14,795,323
	319,509	United Bankshares, Inc.(b)		12,361,803
	231,372	Westamerica Bancorp.(b)		11,272,444
				80,120,190
		Capital Markets—3.7%
	374,769	Eaton Vance Corp.		12,940,774
	459,325	Invesco Ltd.(c)		14,243,668
				27,184,442
		Diversified Telecommunication Services—4.0%
	420,970	AT&T, Inc.		16,342,055
	263,507	Verizon Communications, Inc.		13,423,047
				29,765,102
		Electric Utilities—5.8%
	181,126	Duke Energy Corp.		14,269,106
	374,436	PPL Corp.		14,093,771
	285,697	Southern Co. (The)		14,313,420
				42,676,297
		Electrical Equipment—1.8%
	241,047	Emerson Electric Co.		13,168,398
		Energy Equipment & Services—2.7%
	298,051	Helmerich & Payne, Inc.(b)		19,707,132
		Food Products—4.5%
	283,652	Archer-Daniels-Midland Co.		11,329,061
	588,125	Flowers Foods, Inc.		11,268,475
	137,649	Kellogg Co.		10,572,819
				33,170,355
		Gas Utilities—5.1%
	229,943	National Fuel Gas Co.		12,761,836
	228,994	Northwest Natural Gas Co.		11,802,351
	480,104	South Jersey Industries, Inc.		13,399,703
				37,963,890
		Household Products—1.4%
	125,083	Procter & Gamble Co. (The)		10,021,650
		Insurance—3.7%
	271,967	Mercury General Corp.		14,387,054
	710,247	Old Republic International Corp.		13,132,467
				27,519,521
		IT Services—1.8%
	92,104	International Business Machines Corp.		13,441,658
		Machinery—4.0%
	199,715	Caterpillar, Inc.		15,521,850
	118,354	Cummins, Inc.		13,850,968
				29,372,818
		Media—2.1%
	300,261	Meredith Corp.		15,406,392
		Metals & Mining—3.8%
	176,758	Compass Minerals International, Inc.		13,249,780
	293,267	Nucor Corp.		14,598,831
				27,848,611

Number of Shares			Value
		Common Stocks (continued)
		Multi-Utilities—10.6%
	285,010	Avista Corp.	$	11,420,351
	880,539	CenterPoint Energy, Inc.		18,887,562
	163,364	Consolidated Edison, Inc.		12,186,954
	674,042	MDU Resources Group, Inc.		13,521,283
	157,592	SCANA Corp.		10,824,994
	230,087	Vectren Corp.		11,239,750
				78,080,894
		Oil, Gas & Consumable Fuels—18.4%
	186,946	Chevron Corp.		19,102,142
	138,230	Exxon Mobil Corp.		12,219,532
	1,442,450	Murphy Oil Corp.(b)		51,553,163
	190,700	Occidental Petroleum Corp.		14,617,155
	1,061,929	ONEOK, Inc.		38,388,734
				135,880,726
		Personal Products—2.5%
	459,599	Nu Skin Enterprises, Inc., Class A(b)		18,737,851
		Road & Rail—1.6%
	134,047	Norfolk Southern Corp.		12,078,975
		Semiconductors & Semiconductor Equipment—4.9%
	312,987	Maxim Integrated Products, Inc.		11,179,895
	220,159	Microchip Technology, Inc.		10,697,526
	275,856	QUALCOMM, Inc.		13,936,245
				35,813,666
		Specialty Retail—1.1%
	365,948	Gap, Inc. (The)(b)		8,482,675
		Tobacco—5.6%
	174,078	Altria Group, Inc.		10,916,432
	214,135	Universal Corp.		11,681,064
	869,452	Vector Group Ltd.		18,780,163
				41,377,659
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $679,213,423)—100.0%		737,818,902
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—14.5%
	106,689,297	Invesco Liquid Assets Portfolio—Institutional Class, 0.44%(d)(e) (Cost $106,689,297)		106,689,297
		Total Investments (Cost $785,902,720)—114.5%		844,508,199
		Other assets less liabilities—(14.5)%		(106,724,751	)
		Net Assets—100.0%	$	737,783,448

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

26

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

April 30, 2016

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, 2016.

^(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. The rate shown is the 7-day SEC standardized yield as of April 30, 2016.

^(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 2H.

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

27

Schedule of Investments

PowerShares International Dividend Achievers^TM Portfolio (PID)

April 30, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Australia—10.4%
	885,495	BHP Billiton Ltd. ADR(a)	$	27,751,413
	1,121,574	BHP Billiton PLC ADR(a)		30,921,795
	601,451	Westpac Banking Corp. ADR(a)		14,194,244
				72,867,452
		Belgium—1.0%
	58,013	Anheuser-Busch InBev NV ADR		7,204,054
		Bermuda—4.5%
	2,316,000	Teekay LNG Partners LP		31,821,840
		Brazil—1.5%
	495,235	Ultrapar Participacoes SA ADR		10,390,030
		Canada—26.8%
	84,171	Agrium, Inc.		7,248,806
	241,364	Bank of Nova Scotia (The)		12,659,542
	196,661	BCE, Inc.		9,225,367
	278,138	Brookfield Infrastructure Partners LP(a)		11,731,861
	141,179	Canadian Imperial Bank of Commerce		11,403,028
	52,534	Canadian National Railway Co.		3,233,993
	299,048	Canadian Natural Resources Ltd.		8,977,421
	215,787	Enbridge, Inc.		8,963,792
	42,666	Franco-Nevada Corp.		2,993,447
	75,297	Imperial Oil Ltd.		2,483,295
	106,423	Magna International, Inc.		4,471,894
	195,636	Methanex Corp.		6,839,435
	408,940	Pembina Pipeline Corp.		12,264,111
	966,837	Potash Corp. of Saskatchewan, Inc.		17,132,352
	197,957	Ritchie Bros. Auctioneers, Inc.		5,679,386
	198,624	Rogers Communications, Inc., Class B		7,722,501
	167,331	Royal Bank of Canada		10,394,602
	554,947	Shaw Communications, Inc., Class B		10,272,069
	269,337	Suncor Energy, Inc.		7,910,428
	278,775	TELUS Corp.		8,826,016
	189,660	Toronto-Dominion Bank (The)(a)		8,439,870
	216,546	TransCanada Corp.		8,984,493
				187,857,709
		Colombia—1.3%
	236,563	Bancolombia SA (Preference Shares) ADR		9,152,623
		Denmark—0.4%
	50,433	Novo Nordisk A/S, Class B ADR		2,813,657
		France—1.1%
	187,793	Sanofi ADR		7,718,292
		Germany—0.7%
	44,804	Fresenius Medical Care AG & Co. KGaA ADR(a)		1,954,798
	39,277	SAP SE ADR		3,087,958
				5,042,756
		Hong Kong—2.3%
	960,910	Seaspan Corp.(a)		16,248,988
		India—3.0%
	81,214	Axis Bank Ltd. GDR(b)		2,907,461
	24,526	HDFC Bank Ltd. ADR		1,541,950
	889,691	ICICI Bank Ltd. ADR		6,272,321
	248,396	Infosys Ltd. ADR		4,669,845

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		India (continued)
	179,054	Larsen & Toubro Ltd. GDR(b)	$	3,410,979
	71,401	Reliance Industries Ltd. GDR(b)		2,113,470
				20,916,026
		Ireland—0.1%
	5,236	Shire PLC ADR(a)		981,331
		Israel—0.6%
	80,301	Teva Pharmaceutical Industries Ltd. ADR		4,372,390
		Italy—0.3%
	44,455	Luxottica Group SpA ADR		2,433,022
		Japan—2.4%
	77,158	Nippon Telegraph & Telephone Corp. ADR		3,438,932
	100,238	ORIX Corp. ADR		6,972,555
	61,309	Toyota Motor Corp. ADR		6,235,126
				16,646,613
		Mexico—1.4%
	316,284	America Movil SAB de CV, Series L ADR		4,478,581
	57,571	Grupo Aeroportuario del Pacifico SAB de CV ADR		5,435,854
				9,914,435
		Netherlands—0.2%
	16,750	ASML Holding NV		1,618,050
		Norway—1.9%
	763,477	Statoil ASA ADR(a)		13,429,561
		Panama—2.3%
	615,528	Banco Latinoamericano de Comercio Exterior SA, Class E		15,917,554
		Russia—2.8%
	341,429	LUKOIL PJSC ADR		14,471,468
	51,453	NovaTek OAO GDR(b)		4,939,488
				19,410,956
		Sweden—1.0%
	848,130	Telefonaktiebolaget LM Ericsson, Class B ADR		6,861,372
		Switzerland—3.5%
	441,819	ABB Ltd. ADR		9,326,799
	195,930	Novartis AG ADR		14,884,802
				24,211,601
		Taiwan—1.3%
	1,782,670	Advanced Semiconductor Engineering, Inc. ADR		9,145,097
		United Kingdom—21.3%
	38,293	ARM Holdings PLC ADR		1,577,289
	517,678	BP PLC ADR		17,383,627
	70,438	British American Tobacco PLC ADR		8,604,002
	154,544	BT Group PLC ADR(a)		5,069,043
	59,598	Diageo PLC ADR		6,456,251
	452,107	HSBC Holdings PLC ADR(a)		15,068,726
	101,613	Intercontinental Hotels Group PLC ADR(a)		4,078,746
	1,036,622	Pearson PLC ADR		12,169,942
	103,444	Pentair PLC		6,008,028
	177,851	Prudential PLC ADR		7,023,336

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

28

PowerShares International Dividend Achievers^TM Portfolio (PID) (continued)

April 30, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		United Kingdom (continued)
	297,247	Relx NV ADR	$	4,993,750
	245,038	Relx PLC ADR(a)		4,405,783
	878,852	Rio Tinto PLC ADR(a)		29,582,158
	104,169	Smith & Nephew PLC ADR		3,576,122
	132,736	Unilever NV(a)		5,843,039
	338,412	Vodafone Group PLC ADR		11,079,609
	54,075	WPP PLC ADR(a)		6,334,886
				149,254,337
		United States—7.9%
	8,004,279	Teekay Offshore Partners LP(a)(c)		47,785,546
	183,272	Thomson Reuters Corp.		7,537,977
				55,323,523
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $793,367,358)—100.0%		701,553,269
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—16.2%
	114,148,264	Invesco Liquid Assets Portfolio—Institutional Class, 0.44%(d)(e) (Cost $114,148,264)		114,148,264
		Total Investments (Cost $907,515,622)—116.2%		815,701,533
		Other assets less liabilities—(16.2)%		(114,017,777	)
		Net Assets—100.0%	$	701,683,756

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, 2016.

^(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, 2016 was $13,371,398, which represented 1.91% of the Fund’s Net Assets.

^(c)  Affiliated company. 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. The rate shown is the 7-day SEC standardized yield as of April 30, 2016.

^(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 2H.

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

29

Statements of Assets and Liabilities

April 30, 2016

	PowerShares BuyBack AchieversTM Portfolio (PKW)			PowerShares Dividend AchieversTM Portfolio  (PFM)			PowerShares Financial Preferred Portfolio (PGF)			PowerShares High  Yield Equity Dividend AchieversTM Portfolio (PEY)			PowerShares International Dividend AchieversTM Portfolio  (PID)
Assets:
Unaffiliated investments, at value(a)	$	1,639,490,627		$	286,445,393		$	1,634,007,005		$	723,575,234		$	653,767,723
Affiliated investments, at value		70,981,185			558,707			17,206,270			120,932,965			161,933,810
Total investments, at value		1,710,471,812			287,004,100			1,651,213,275			844,508,199			815,701,533
Receivables:
Investments sold		21,022,903			69,376			1,689,371			—			324,240
Dividends		539,197			557,891			4,405,598			1,802,746			3,249,414
Securities lending		39,764			—			41,207			75,428			253,801
Shares sold		—			—			3,751,686			4,463,001			—
Foreign tax reclaims		—			—			—			—			990,909
Settlement proceeds		—			—			—			—			1,765
Other assets		8,372			3,255			6,590			4,923			7,426
Total Assets		1,732,082,048			287,634,622			1,661,107,727			850,854,297			820,529,088
Liabilities:
Due to custodian		—			314,557			4,189,569			300,487			4,014,361
Payables:
Collateral upon return of securities loaned		70,119,602			—			17,206,270			106,689,297			114,148,264
Investments purchased		16,360,109			854			1,869,923			5,536,262			35,337
Shares repurchased		4,603,545			—			—			—			—
Accrued advisory fees		694,134			94,419			657,439			227,367			226,215
Accrued trustees’ and officer’s fees		60,779			26,983			92,575			31,111			58,458
Accrued expenses		809,654			145,341			713,498			286,325			362,697
Total Liabilities		92,647,823			582,154			24,729,274			113,070,849			118,845,332
Net Assets	$	1,639,434,225		$	287,052,468		$	1,636,378,453		$	737,783,448		$	701,683,756
Net Assets Consist of:
Shares of beneficial interest	$	1,832,545,237		$	256,517,062		$	1,565,304,802		$	836,648,721		$	1,200,371,197
Undistributed net investment income		3,331,080			1,149,675			(88,742	)		60,731			8,062,597
Undistributed net realized gain (loss)		(264,399,287	)		(22,960,430	)		(25,917,040	)		(157,531,483	)		(414,936,592	)
Net unrealized appreciation (depreciation)		67,957,195			52,346,161			97,079,433			58,605,479			(91,813,446	)
Net Assets	$	1,639,434,225		$	287,052,468		$	1,636,378,453		$	737,783,448		$	701,683,756
Shares outstanding (unlimited amount authorized, $0.01 par value)		35,900,000			13,200,000			87,050,000			49,500,000			47,850,000
Net asset value	$	45.67		$	21.75		$	18.80		$	14.90		$	14.66
Market price	$	45.65		$	21.75		$	18.83		$	14.91		$	14.65
Unaffiliated investments, at cost	$	1,571,533,432		$	233,907,242		$	1,536,927,572		$	664,955,458		$	704,625,633
Affiliated investments, at cost	$	70,981,185		$	750,697		$	17,206,270		$	120,947,262		$	202,889,989
Total investments, at cost	$	1,642,514,617		$	234,657,939		$	1,554,133,842		$	785,902,720		$	907,515,622
(a) Includes securities on loan with an aggregate value of	$	68,423,981		$	—		$	16,861,047		$	105,470,663		$	110,366,907

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, 2016

	PowerShares BuyBack AchieversTM Portfolio  (PKW)			PowerShares Dividend AchieversTM Portfolio  (PFM)			PowerShares Financial Preferred Portfolio (PGF)			PowerShares High  Yield Equity Dividend AchieversTM Portfolio (PEY)			PowerShares International Dividend AchieversTM Portfolio (PID)
Investment Income:
Unaffiliated dividend income	$	42,639,354		$	8,674,344		$	95,902,060		$	22,971,866		$	42,955,146
Affiliated dividend income		192,257			22,599			8,414			884			2,241,293
Securities lending income		576,926			—			841,852			221,109			2,061,911
Foreign withholding tax		—			—			—			—			(2,954,090	)
Total Income		43,408,537			8,696,943			96,752,326			23,193,859			44,304,260
Expenses:
Advisory fees		11,813,964			1,201,114			7,572,671			2,229,710			4,221,020
Sub-licensing fees		2,362,792			300,277			1,431,238			557,426			1,055,254
Accounting & administration fees		443,508			54,579			280,610			105,283			202,381
Trustees’ and officer’s fees		54,779			13,319			34,955			17,854			29,279
Custodian & transfer agent fees		25,138			15,735			70,788			15,358			453,685
Other expenses		210,275			66,108			151,981			82,273			157,997
Total Expenses		14,910,456			1,651,132			9,542,243			3,007,904			6,119,616
Less: Waivers		(3,169	)		(382	)		(11,665	)		(753	)		(1,162	)
Net Expenses		14,907,287			1,650,750			9,530,578			3,007,151			6,118,454
Net Investment Income		28,501,250			7,046,193			87,221,748			20,186,708			38,185,806
Realized and Unrealized Gain (Loss):
Net realized gain (loss) from:
Investment securities*		(189,872,491	)		(2,214,196	)		1,538,026			(26,601,222	)		(126,535,685	)
In-kind redemptions		184,644,298			16,570,662			29,388,004			64,519,971			3,282,470
Foreign currencies		—			—			—			—			459
Net realized gain (loss)		(5,228,193	)		14,356,466			30,926,030			37,918,749			(123,252,756	)
Change in net unrealized appreciation (depreciation) on:
Investment securities		(194,908,268	)		(13,429,976	)		(9,113,684	)		25,751,399			(202,704,253	)
Foreign currencies		—			—			—			—			643
Net change in unrealized appreciation (depreciation)		(194,908,268	)		(13,429,976	)		(9,113,684	)		25,751,399			(202,703,610	)
Net realized and unrealized gain (loss)		(200,136,461	)		926,490			21,812,346			63,670,148			(325,956,366	)
Net increase (decrease) in net assets resulting from operations	$	(171,635,211	)	$	7,972,683		$	109,034,094		$	83,856,856		$	(287,770,560	)

* Includes net gains from securities sold to affiliates of $9,445 for PowerShares Financial Preferred Portfolio.

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, 2016 and 2015

	PowerShares BuyBack AchieversTM Portfolio  (PKW)						PowerShares Dividend AchieversTM Portfolio (PFM)
	2016			2015			2016			2015
Operations:
Net investment income	$	28,501,250		$	30,836,737		$	7,046,193		$	7,376,238
Net realized gain (loss)		(5,228,193	)		258,161,485			14,356,466			24,781,463
Net change in unrealized appreciation (depreciation)		(194,908,268	)		37,064,023			(13,429,976	)		(8,826,932	)
Net increase (decrease) in net assets resulting from operations		(171,635,211	)		326,062,245			7,972,683			23,330,769
Distributions to Shareholders from:
Net investment income		(29,971,633	)		(32,756,576	)		(7,191,272	)		(7,214,576	)
Shareholder Transactions:
Proceeds from shares sold		552,688,479			1,366,740,866			13,765,872			49,356,388
Value of shares repurchased		(1,682,571,530	)		(1,594,242,954	)		(71,313,646	)		(73,210,711	)
Net increase (decrease) in net assets resulting from shares transactions		(1,129,883,051	)		(227,502,088	)		(57,547,774	)		(23,854,323	)
Increase (Decrease) in Net Assets		(1,331,489,895	)		65,803,581			(56,766,363	)		(7,738,130	)
Net Assets:
Beginning of year		2,970,924,120			2,905,120,539			343,818,831			351,556,961
End of year	$	1,639,434,225		$	2,970,924,120		$	287,052,468		$	343,818,831
Undistributed net investment income at end of year	$	3,331,080		$	4,900,076		$	1,149,675		$	1,171,060
Changes in Shares Outstanding:
Shares sold		12,800,000			28,850,000			650,000			2,300,000
Shares repurchased		(37,800,000	)		(34,850,000	)		(3,500,000	)		(3,400,000	)
Shares outstanding, beginning of year		60,900,000			66,900,000			16,050,000			17,150,000
Shares outstanding, end of year		35,900,000			60,900,000			13,200,000			16,050,000

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 AchieversTM Portfolio (PEY)						PowerShares International Dividend AchieversTM Portfolio (PID)
2016			2015			2016			2015			2016			2015
$	87,221,748		$	84,111,917		$	20,186,708		$	16,444,680		$	38,185,806		$	38,304,869
	30,926,030			18,545,919			37,918,749			55,819,802			(123,252,756	)		3,930,446
	(9,113,684	)		17,654,230			25,751,399			(9,435,272	)		(202,703,610	)		(19,752,892	)
	109,034,094			120,312,066			83,856,856			62,829,210			(287,770,560	)		22,482,423
	(87,907,150	)		(83,658,606	)		(20,340,136	)		(16,547,207	)		(39,292,920	)		(36,588,767	)
	404,047,155			96,086,975			505,920,545			394,961,598			12,037,214			570,101,010
	(260,512,094	)		(96,582,262	)		(368,978,245	)		(297,022,280	)		(555,136,253	)		(144,801,898	)
	143,535,061			(495,287	)		136,942,300			97,939,318			(543,099,039	)		425,299,112
	164,662,005			36,158,173			200,459,020			144,221,321			(870,162,519	)		411,192,768
	1,471,716,448			1,435,558,275			537,324,428			393,103,107			1,571,846,275			1,160,653,507
$	1,636,378,453		$	1,471,716,448		$	737,783,448		$	537,324,428		$	701,683,756		$	1,571,846,275
$	(88,742	)	$	412,813		$	60,731		$	214,159		$	8,062,597		$	6,170,194
	21,700,000			5,250,000			36,700,000			30,300,000			700,000			30,700,000
	(14,400,000	)		(5,300,000	)		(27,150,000	)		(22,250,000	)		(38,200,000	)		(7,900,000	)
	79,750,000			79,800,000			39,950,000			31,900,000			85,350,000			62,550,000
	87,050,000			79,750,000			49,500,000			39,950,000			47,850,000			85,350,000

33

Financial Highlights

PowerShares BuyBack Achievers^TM Portfolio (PKW)

	Year Ended April 30,
	2016			2015			2014			2013			2012
Per Share Operating Performance:
Net asset value at beginning of year	$	48.78		$	43.42		$	34.60		$	29.40		$	27.27
Net investment income(a)		0.56			0.51			0.39			0.37			0.27
Net realized and unrealized gain (loss) on investments		(3.08	)		5.38			8.70			5.18			2.12
Total from investment operations		(2.52	)		5.89			9.09			5.55			2.39
Distributions to shareholders from:
Net investment income		(0.59	)		(0.53	)		(0.27	)		(0.35	)		(0.26	)
Net asset value at end of year	$	45.67		$	48.78		$	43.42		$	34.60		$	29.40
Market price at end of year(b)	$	45.65		$	48.77		$	43.42		$	34.61		$	29.40
Net Asset Value Total Return(c)		(5.18	)%		13.63	%		26.36	%		19.08	%		8.91	%
Market Price Total Return(c)		(5.20	)%		13.61	%		26.32	%		19.11	%		8.91	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	1,639,434		$	2,970,924		$	2,905,121		$	418,621		$	139,641
Ratio to average net assets of:
Expenses, after Waivers		0.63	%(d)		0.63	%(d)		0.66	%(d)		0.70	%		0.71	%
Expenses, prior to Waivers		0.63	%(d)		0.63	%(d)		0.66	%(d)		0.70	%		0.79	%
Net investment income, after Waivers		1.21	%		1.09	%		0.95	%		1.21	%		1.00	%
Portfolio turnover rate(e)		53	%		68	%		92	%		80	%		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)  In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the investment companies in which the Fund invests. Estimated investment companies’ expenses are not expenses that are incurred directly by the Fund. They are expenses that are incurred directly by the investment companies and are deducted from the value of the investment companies 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 for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions.

PowerShares Dividend Achievers^TM Portfolio (PFM)

	Year Ended April 30,
	2016			2015			2014			2013			2012
Per Share Operating Performance:
Net asset value at beginning of year	$	21.42		$	20.50		$	18.33		$	15.81		$	15.29
Net investment income(a)		0.49			0.44			0.39			0.38			0.34
Net realized and unrealized gain on investments		0.33			0.90			2.16			2.52			0.51
Total from investment operations		0.82			1.34			2.55			2.90			0.85
Distributions to shareholders from:
Net investment income		(0.49	)		(0.42	)		(0.38	)		(0.38	)		(0.33	)
Net asset value at end of year	$	21.75		$	21.42		$	20.50		$	18.33		$	15.81
Market price at end of year(b)	$	21.75		$	21.40		$	20.50		$	18.32		$	15.80
Net Asset Value Total Return(c)		3.98	%		6.54	%		14.11	%		18.67	%		5.78	%
Market Price Total Return(c)		4.08	%		6.44	%		14.17	%		18.68	%		5.71	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	287,052		$	343,819		$	351,557		$	296,928		$	252,988
Ratio to average net assets of:
Expenses, after Waivers		0.55	%		0.55	%		0.55	%		0.58	%		0.60	%
Expenses, prior to Waivers		0.55	%		0.55	%		0.55	%		0.58	%		0.60	%
Net investment income, after Waivers		2.35	%		2.07	%		2.05	%		2.28	%		2.28	%
Portfolio turnover rate(d)		7	%		20	%		21	%		18	%		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 for periods less than one year, if applicable, 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,
	2016			2015			2014			2013			2012
Per Share Operating Performance:
Net asset value at beginning of year	$	18.45		$	17.99		$	18.67		$	17.79		$	18.26
Net investment income(a)		1.06			1.07			1.10			1.18			1.17
Net realized and unrealized gain (loss) on investments		0.36			0.45			(0.68	)		0.85			(0.42	)
Total from investment operations		1.42			1.52			0.42			2.03			0.75
Distributions to shareholders from:
Net investment income		(1.07	)		(1.06	)		(1.10	)		(1.15	)		(1.17	)
Return of capital		—			—			—			—			(0.05	)
Total distributions		(1.07	)		(1.06	)		(1.10	)		(1.15	)		(1.22	)
Net asset value at end of year	$	18.80		$	18.45		$	17.99		$	18.67		$	17.79
Market price at end of year(b)	$	18.83		$	18.46		$	17.98		$	18.70		$	17.83
Net Asset Value Total Return(c)		8.01	%		8.73	%		2.63	%		11.78	%		4.56	%
Market Price Total Return(c)		8.12	%		8.85	%		2.41	%		11.71	%		4.68	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	1,636,378		$	1,471,716		$	1,435,558		$	1,891,452		$	1,612,698
Ratio to average net assets of:
Expenses, after Waivers		0.63	%		0.63	%		0.63	%		0.64	%		0.66	%
Expenses, prior to Waivers		0.63	%		0.63	%		0.63	%		0.64	%		0.66	%
Net investment income, after Waivers		5.76	%		5.87	%		6.28	%		6.47	%		6.76	%
Portfolio turnover rate(d)		13	%		9	%		30	%		18	%		6	%

^(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 for periods less than one year, if applicable, 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,
	2016			2015			2014			2013			2012
Per Share Operating Performance:
Net asset value at beginning of year	$	13.45		$	12.32		$	10.77		$	9.36		$	9.06
Net investment income(a)		0.48			0.43			0.42			0.42			0.35
Net realized and unrealized gain on investments		1.46			1.13			1.54			1.41			0.29
Total from investment operations		1.94			1.56			1.96			1.83			0.64
Distributions to shareholders from:
Net investment income		(0.49	)		(0.43	)		(0.41	)		(0.42	)		(0.34	)
Net asset value at end of year	$	14.90		$	13.45		$	12.32		$	10.77		$	9.36
Market price at end of year(b)	$	14.91		$	13.45		$	12.32		$	10.76		$	9.36
Net Asset Value Total Return(c)		14.92	%		12.89	%		18.61	%		20.16	%		7.37	%
Market Price Total Return(c)		14.99	%		12.89	%		18.72	%		20.05	%		7.37	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	737,783		$	537,324		$	393,103		$	322,476		$	276,169
Ratio to average net assets of:
Expenses, after Waivers		0.54	%		0.54	%		0.55	%		0.57	%		0.60	%
Expenses, prior to Waivers		0.54	%		0.54	%		0.55	%		0.57	%		0.60	%
Net investment income, after Waivers		3.62	%		3.29	%		3.70	%		4.31	%		3.88	%
Portfolio turnover rate(d)		59	%		45	%		51	%		32	%		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 for periods less than one year, if applicable, 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 International Dividend Achievers^TM Portfolio (PID)

	Year Ended April 30,
	2016			2015			2014			2013			2012
Per Share Operating Performance:
Net asset value at beginning of year	$	18.42		$	18.56		$	17.27		$	15.35		$	16.85
Net investment income(a)		0.56			0.51			0.67	(b)		0.40			0.48
Net realized and unrealized gain (loss) on investments		(3.78	)		(0.17	)		1.26			1.93			(1.49	)
Total from investment operations		(3.22	)		0.34			1.93			2.33			(1.01	)
Distributions to shareholders from:
Net investment income		(0.54	)		(0.48	)		(0.64	)		(0.41	)		(0.49	)
Net asset value at end of year	$	14.66		$	18.42		$	18.56		$	17.27		$	15.35
Market price at end of year(c)	$	14.65		$	18.43		$	18.58		$	17.31		$	15.37
Net Asset Value Total Return(d)		(17.53	)%		1.83	%		11.50	%		15.63	%		(5.87	)%
Market Price Total Return(d)		(17.63	)%		1.77	%		11.35	%		15.75	%		(5.97	)%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	701,684		$	1,571,846		$	1,160,654		$	877,341		$	690,196
Ratio to average net assets of:
Expenses, after Waivers		0.58	%		0.55	%		0.54	%		0.56	%		0.55	%
Expenses, prior to Waivers		0.58	%		0.55	%		0.54	%		0.56	%		0.56	%
Net investment income, after Waivers		3.62	%		2.77	%		3.82	%(b)		2.57	%		3.20	%
Portfolio turnover rate(e)		61	%		66	%		49	%		46	%		33	%

^(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 for periods less than one year, if applicable, 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, 2016

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, 2016, 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 will 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.

The Funds may periodically participate in litigation related to each Fund’s investments. As such, the Funds may receive proceeds from litigation settlements. Any proceeds received are included in the Statements of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.

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

Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statements of Operations and the Statements of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of each Fund’s net asset value and, accordingly, they reduce each Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statements of Operations and the Statements of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between each Fund and the Adviser.

E. Country Determination

For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the Adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.

F. 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,

40

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.

G. 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.

H. Securities Lending

During the fiscal year ended April 30, 2016, 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 securities) 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 Schedules of Investments. Each Fund bears the risk of loss with respect to the investment of collateral. 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. When loaning securities, each Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to each 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. The securities loaned are subject to termination at the option of the borrower or each Fund. Upon termination, the borrower will return to each Fund the securities loaned and each Fund will return the collateral. 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. Each Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to each Fund. Some of these losses may be indemnified by the lending agent. Each 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, 2017. 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, 2017. During its term, the Expense Agreement cannot be terminated or amended to increase the Expense Cap without approval of the Board of Trustees. 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, 2018, 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, 2016, the Adviser waived fees and/or paid Fund expenses for each Fund in the following amounts:

BuyBack AchieversTM Portfolio	$	3,169
Dividend AchieversTM Portfolio		382
Financial Preferred Portfolio		11,665
High Yield Equity Dividend AchieversTM Portfolio		753
International Dividend AchieversTM Portfolio		1,162

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, 2016, 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 & Company
High Yield Equity Dividend AchieversTM Portfolio	NASDAQ OMX Group, Inc.
International Dividend AchieversTM 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 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, 2016.

BuyBack Achievers^TM Portfolio

	Value April 30, 2015		Purchases at Cost		Proceeds from Sales			Change in Unrealized Appreciation (Depreciation)			Realized Gain (Loss)			Value April 30, 2016		Dividend Income
Invesco Mortgage Capital, Inc. REIT*	$	2,502,438	$	438,338	$	(2,337,991	)	$	(6,133	)	$	(596,652	)	$	—	$	188,710

* At April 30, 2016, this security was no longer held.

Dividend Achievers^TM Portfolio

	Value April 30, 2015		Purchases at Cost		Proceeds from Sales			Change in Unrealized Appreciation (Depreciation)			Realized Gain (Loss)			Value April 30, 2016		Dividend Income
Invesco Ltd.	$	921,802	$	44,359	$	(183,282	)	$	(182,198	)	$	(41,974	)	$	558,707	$	22,222

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High Yield Equity Dividend Achievers^TM Portfolio

	Value April 30, 2015		Purchases at Cost		Proceeds from Sales			Change in Unrealized Appreciation (Depreciation)			Realized Gain		Value April 30, 2016		Dividend Income
Invesco Ltd.	$	—	$	14,531,495	$	(275,693	)	$	(14,297	)	$	2,163	$	14,243,668	$	—

International Dividend Achievers^TM Portfolio

	Value April 30, 2015		Purchases at Cost		Proceeds from Sales			Change in Unrealized Appreciation		Realized Gain (Loss)			Value April 30, 2016		Dividend Income
Invesco Ltd.*	$	14,328,131	$	1,824,122	$	(12,544,160	)	$	149,014	$	(3,757,107	)	$	—	$	340,127

* At April 30, 2016, this security was no longer held.

The 1940 Act defines “affiliated person” to include issuers of which a fund holds 5% or more of the outstanding voting securities. The Fund listed below has not owned enough of the outstanding voting securities of the issuer to have control (as defined in the 1940 Act) of that issuer. The table below shows International Dividend Achievers^™ Portfolio’s transactions in, and earnings from, its investment in affiliates for the fiscal year ended April 30, 2016.

International Dividend Achievers^TM Portfolio

	Value April 30, 2015		Purchases at Cost		Proceeds from Sales			Change in Unrealized Appreciation (Depreciation)			Realized Gain (Loss)			Value April 30, 2016		Dividend Income
Teekay Offshore Partners LP	$	58,879,251	$	50,525,054	$	(19,886,360	)	$	(36,262,126	)	$	(5,470,273	)	$	47,785,546	$	1,900,090

Note 5. Security Transactions with Affiliated Funds

Each Fund is permitted to purchase or sell securities from or to certain other affiliated funds under specified conditions outlined in procedures adopted by the Board of Trustees of the Trust. The procedures have been designed to ensure that any purchase or sale of securities by the Fund from or to another fund or portfolio that is or could be considered an affiliate by virtue of having a common investment adviser (or affiliated investment advisers), common Trustees and/or common officers complies with Rule 17a-7 of the 1940 Act. Further, as defined under the procedures, each transaction is effected at the current market price. For the fiscal year ended April 30, 2016, the following Fund engaged in transactions with affiliates as listed below:

	Securities Purchases		Securities Sales		Net Realized Gains
Financial Preferred Portfolio	$	—	$	1,126,599	$	9,445

Note 6. 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, 2016, 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

43

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 7. Distributions to Shareholders and Tax Components of Net Assets

Tax Character of Distributions to Shareholders Paid During the Fiscal Years Ended April 30, 2016 and 2015:

	2016		2015
	Ordinary Income		Ordinary Income
BuyBack AchieversTM Portfolio	$	29,971,633	$	32,756,576
Dividend AchieversTM Portfolio		7,191,272		7,214,576
Financial Preferred Portfolio		87,907,150		83,658,606
High Yield Equity Dividend Achievers™ Portfolio		20,340,136		16,547,207
International Dividend Achievers™ Portfolio		39,292,920		36,588,767

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— Other Investments		Capital Loss Carryforwards			Post-October Capital Loss Deferrals*			Shares of Beneficial Interest		Total Net Assets
BuyBack AchieversTM Portfolio	$	3,386,349	$	(55,269	)	$	61,577,509		$	—	$	(75,310,983	)	$	(182,708,618	)	$	1,832,545,237	$	1,639,434,225
Dividend AchieversTM Portfolio		1,175,090		(25,415	)		49,536,501			—		(17,996,901	)		(2,153,869	)		256,517,062		287,052,468
Financial Preferred Portfolio		—		(88,742	)		91,882,209			—		(16,389,493	)		(4,330,323	)		1,565,304,802		1,636,378,453
High Yield Equity Dividend AchieversTM Portfolio		89,930		(29,199	)		53,991,168			—		(130,623,183	)		(22,293,989	)		836,648,721		737,783,448
International Dividend AchieversTM Portfolio		9,098,379		(55,339	)		(107,038,364	)		643		(310,516,924	)		(90,175,836	)		1,200,371,197		701,683,756

* 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, 2016:

							Post-effective/no expiration
	2017		2018		2019		Short-Term		Long-Term		Total*		Expired
BuyBack AchieversTM Portfolio	$	800,254	$	12,142,749	$	2,107,645	$	56,085,445	$	4,174,890	$	75,310,983	$	2,915,680
Dividend AchieversTM Portfolio		1,025,344		14,632,363		2,339,194		—		—		17,996,901		—
Financial Preferred Portfolio		9,034,558		7,354,935		—		—		—		16,389,493		3,548,179
High Yield Equity Dividend AchieversTM Portfolio		81,487,358		44,815,128		2,187,574		1,777,356		355,767		130,623,183		884,585
International Dividend AchieversTM Portfolio		59,472,841		145,514,837		11,745,409		83,219,280		10,564,557		310,516,924		1,975,339

* 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.

44

Note 8. Investment Transactions

For the fiscal year ended April 30, 2016, 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	$	1,242,783,438	$	1,246,226,878
Dividend AchieversTM Portfolio		20,938,308		21,382,288
Financial Preferred Portfolio		220,997,628		202,322,261
High Yield Equity Dividend AchieversTM Portfolio		337,917,071		332,862,982
International Dividend AchieversTM Portfolio		646,273,970		641,710,718

For the fiscal year ended April 30, 2016, in-kind transactions associated with creations and redemptions were as follows:

	Cost of Securities Received		Value of Securities Delivered
BuyBack AchieversTM Portfolio	$	552,716,989	$	1,679,750,117
Dividend AchieversTM Portfolio		13,700,251		70,300,069
Financial Preferred Portfolio		373,742,262		258,312,094
High Yield Equity Dividend AchieversTM Portfolio		497,777,185		365,946,837
International Dividend AchieversTM Portfolio		12,036,598		554,815,329

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

At April 30, 2016, 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
BuyBack AchieversTM Portfolio	$	138,753,473	$	(77,175,964	)	$	61,577,509		$	1,648,894,303
Dividend AchieversTM Portfolio		56,346,979		(6,810,478	)		49,536,501			237,467,599
Financial Preferred Portfolio		96,265,593		(4,383,384	)		91,882,209			1,559,331,066
High Yield Equity Dividend AchieversTM Portfolio		57,987,768		(3,996,600	)		53,991,168			790,517,031
International Dividend AchieversTM Portfolio		29,063,900		(136,102,264	)		(107,038,364	)		922,739,897

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, 2016, 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, 2016, the reclassifications were as follows:

	Undistributed Net Investment Income			Undistributed Net Realized Gain (Loss)			Shares of Beneficial Interest
BuyBack AchieversTM Portfolio	$	(98,613	)	$	(168,900,638	)	$	168,999,251
Dividend AchieversTM Portfolio		123,694			(15,933,036	)		15,809,342
Financial Preferred Portfolio		183,847			(23,571,940	)		23,388,093
High Yield Equity Dividend AchieversTM Portfolio		—			(60,659,132	)		60,659,132
International Dividend AchieversTM Portfolio		2,999,517			13,735,262			(16,734,779	)

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 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

45

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.

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.

46

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, 2016, 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, 2016 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 23, 2016

47

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, 2016.

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 is included in the 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, 2015		Ending Account Value April 30, 2016		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	$	973.14		0.63	%	$	3.09
Hypothetical (5% return before expenses)		1,000.00		1,021.73		0.63			3.17
PowerShares Dividend AchieversTM Portfolio (PFM)
Actual		1,000.00		1,055.33		0.55			2.81
Hypothetical (5% return before expenses)		1,000.00		1,022.13		0.55			2.77
PowerShares Financial Preferred Portfolio (PGF)
Actual		1,000.00		1,044.34		0.63			3.20
Hypothetical (5% return before expenses)		1,000.00		1,021.73		0.63			3.17
PowerShares High Yield Equity Dividend AchieversTM Portfolio (PEY)
Actual		1,000.00		1,111.21		0.54			2.83
Hypothetical (5% return before expenses)		1,000.00		1,022.18		0.54			2.72
PowerShares International Dividend AchieversTM Portfolio (PID)
Actual		1,000.00		957.44		0.65			3.16
Hypothetical (5% return before expenses)		1,000.00		1,021.63		0.65			3.27

⁽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, 2016. Expenses are calculated by multiplying the Fund’s annualized expense ratio by the average account value for the period, then multiplying the result by 182/366. 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, 2016:

	Qualified Dividend Income*			Dividends-Received Deduction*
PowerShares BuyBack AchieversTM Portfolio		100	%		100	%
PowerShares Dividend AchieversTM Portfolio		100	%		100	%
PowerShares Financial Preferred Portfolio		100	%		68	%
PowerShares High Yield Equity Dividend AchieversTM Portfolio		100	%		100	%
PowerShares International Dividend AchieversTM Portfolio		67	%		0	%

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

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

	Gross Foreign Income			Foreign Taxes Paid
PowerShares International Dividend AchieversTM Portfolio		$	26,399,030		$	1,981,013

49

Trustees and Officers

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

The Trustees and officers information is current as of April 30, 2016.

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	Chairman of the Nominating and Governance Committee and Trustee	Chairman of the Nominating and Governance Committee and 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).	124	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 (2010-2016); 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.	124	None
Marc M. Kole—1960 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Chairman of the Audit Committee and Trustee	Chairman of the Audit Committee since 2008; and Trustee since 2006	Senior Director of Finance, By The Hand Club for Kids (2015-Present); 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).	124	None
Yung Bong Lim—1964 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Chairman of the Investment Oversight Committee and Trustee	Chairman of the Investment Oversight Committee since 2014; Trustee since 2013	Managing Partner, Residential Dynamics Group LLC (2008-Present); formerly, Managing Director, Citadel Investment Group, L.L.C. (1999-2007).	124	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, 2016, the “Fund Family” consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 71 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
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).	124	None
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).	124	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 and Chief Executive Officer, Stone Pillar Advisors, Ltd. (2010-Present); formerly, Chairman, President and Chief Executive Officer, Community Financial Shares, Inc. and Community Bank—Wheaton/Glen Ellyn (subsidiary) (2013-2015); 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).	124	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, 2016, the “Fund Family” consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 71 portfolios advised by the Adviser.

51

Trustees and Officers (continued)

The Non-Independent Trustees and the executive officers of the Trust, their term of office and length of time served, their principal business occupations during 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 Trustees are shown below.

Name, Address and Year of Birth of Non-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 Non-Independent Trustee	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. (2007-Present); Director, Invesco Advisers, Inc. (2009-Present); Director, Invesco Finance PLC, 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., IVZ, Inc. and Invesco Asset Management (Bermuda) Ltd.; Manager, Horizon Flight Works LLC; Director and Secretary, IVZ Bahamas Private Limited; formerly, Director, INVESCO Funds Group, Inc., 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.	124	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, 2016, the Fund Complex consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 71 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
Daniel E. Draper—1968 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	President and Principal Executive Officer	Since 2015	President and Principal Executive Officer, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2015-Present); Chief Executive Officer (2016-Present) and Managing Director (2013-Present), Invesco PowerShares Capital Management LLC; Senior Vice President, Invesco Distributors, Inc. (2014-Present); formerly, 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 (2013-2015) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-2015); 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, 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).
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 (2010-Present); formerly, Vice President of Portfolio Management, Invesco PowerShares Capital Management LLC (2008-2010); 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).
Christopher Joe—1969 Invesco PowerShares Capital Management LLC 11 Greenway Plaza, Suite 1000 Houston, TX 77046-1173	Chief Compliance Officer	Since 2012	Chief Compliance Officer of Invesco PowerShares Capital Management LLC (2015-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); formerly, Chief Compliance Officer, Invesco Investment Advisers, LLC (registered investment adviser) (2010–2013), U.S. Compliance Director, Invesco, Ltd. (2006-2014) and Deputy Chief Compliance Officer of Invesco Advisers, Inc. (2014-2015).

* 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.

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
Sheri Morris—1964 Invesco Management Group, Inc. 11 Greenway Plaza, Suite 1000 Houston, TX 77046	Vice President	Since 2012	President, Principal Executive Officer and Treasurer, The Invesco Funds (2016-Present); 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, Vice President, Treasurer and Principal Financial Officer, The Invesco Funds (2008-2016); 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.
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 (2010-Present) and Secretary (2015-Present), 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).
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 Services, Invesco PowerShares Capital Management LLC (2013-Present).
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, and 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, 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.); Chief Administrative Officer, North American Retail, Invesco Ltd. (2007-Present); Director, Invesco Corporate Class Inc. (2014-Present); Director, Invesco Global Direct Real Estate Feeder GP Ltd. (2015-Present); Director, Invesco Canada Holdings Inc. (2002-Present); Director, Invesco Financial Services Ltd. / Services Financiers Invesco Ltée and Trimark Investments Ltd./Placements Trimark Ltée (2014-Present); Director, Invesco IP Holdings (Canada) Ltd. (2016-Present); Director, Invesco Global Direct Real Estate GP Ltd. (2015-Present); formerly, Executive Vice President and Chief Financial Officer, Invesco Inc. (2009-2015); Director, Executive Vice President and Chief Financial Officer, Invesco Canada Ltd. (formerly, Invesco Trimark Ltd.) (2000-2011).

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.

54

Board Considerations Regarding Continuation of Investment

Advisory Agreement

At a meeting held on April 14, 2016, 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^TM Portfolio

PowerShares Cleantech^TM 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 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 Russell Top 200 Equal Weight Portfolio

PowerShares Russell Top 200 Pure Growth Portfolio

PowerShares Russell Top 200 Pure Value Portfolio

PowerShares Russell Midcap Equal Weight Portfolio

PowerShares Russell Midcap Pure Growth Portfolio

PowerShares Russell Midcap Pure Value Portfolio

PowerShares Russell 2000 Equal Weight Portfolio

PowerShares Russell 2000 Pure Growth Portfolio

PowerShares Russell 2000 Pure Value Portfolio

PowerShares S&P 500^® 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 for each Fund, (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.

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, 2015, 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 certain Funds and their underlying indexes. In reviewing the tracking error reports, 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 correlation and tracking error for

55

Board Considerations Regarding Continuation of Investment Advisory

Agreement (continued)

each Fund was within the targeted range set forth in the Trust’s registration statement and 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^TM Portfolio, PowerShares High Yield Equity Dividend Achievers^TM Portfolio, PowerShares International Dividend Achievers^TM Portfolio, PowerShares FTSE RAFI US 1000 Portfolio, PowerShares FTSE RAFI US 1500 Small-Mid Portfolio, PowerShares Russell Top 200 Equal Weight Portfolio, PowerShares Russell Top 200 Pure Growth Portfolio, PowerShares Russell Top 200 Pure Value Portfolio, PowerShares Russell Midcap Equal Weight Portfolio, PowerShares Russell Midcap Pure Growth Portfolio, PowerShares Russell Midcap Pure Value Portfolio, PowerShares Russell 2000 Equal Weight Portfolio, PowerShares Russell 2000 Pure Growth Portfolio, PowerShares Russell 2000 Pure Value Portfolio and PowerShares S&P 500^® Quality Portfolio;

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

● 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 Russell Top 200 Pure Growth Portfolio, PowerShares Russell Top 200 Pure Value Portfolio, PowerShares Russell Midcap Pure Growth Portfolio, PowerShares Russell Midcap Pure Value Portfolio, PowerShares Russell 2000 Pure Growth, Portfolio, PowerShares Russell 2000 Pure Value Portfolio and PowerShares S&P 500^® Quality Portfolio; and

● 0.25% of the Fund’s average daily net assets for each of PowerShares Russell Top 200 Equal Weight Portfolio, PowerShares Russell Midcap Equal Weight Portfolio and PowerShares Russell 2000 Equal Weight Portfolio (The net advisory fees, after giving effect to the Expense Caps below, were 0.01%, -0.05% and -0.39% and, respectively, for PowerShares Russell Top 200 Equal Weight Portfolio, PowerShares Russell Midcap Equal Weight Portfolio and PowerShares Russell 2000 Equal Weight 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, 2017, 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^TM Portfolio, PowerShares High Yield Equity Dividend Achievers^TM Portfolio and PowerShares International Dividend Achievers^TM 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 Russell Top 200 Pure Growth Portfolio, PowerShares Russell Top 200 Pure Value Portfolio, PowerShares Russell Midcap Pure Growth Portfolio, PowerShares Russell Midcap Pure Value Portfolio, PowerShares Russell 2000 Pure Growth Portfolio and PowerShares Russell 2000 Pure 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^® Quality Portfolio;

● 0.25%, excluding interest expenses, offering costs, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses for PowerShares Top 200 Equal Weight Portfolio, PowerShares Russell Midcap Equal Weight Portfolio and PowerShares Russell 2000 Equal Weight Portfolio;

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 Median*	Equal to/Lower than Open-End Active Fund Median
PowerShares Aerospace & Defense Portfolio			X
PowerShares Buyback Achievers Portfolio			X
PowerShares Cleantech Portfolio			X
PowerShares Dividend Achievers Portfolio		X	X
PowerShares DWA Basic Materials Momentum Portfolio			X
PowerShares DWA Consumer Cyclicals Momentum Portfolio			X
PowerShares DWA Consumer Staples Momentum Portfolio			X
PowerShares DWA Energy Momentum Portfolio			X
PowerShares DWA Financial Momentum Portfolio			X
PowerShares DWA Healthcare Momentum Portfolio			X
PowerShares DWA Industrials Momentum Portfolio			X
PowerShares DWA Momentum Portfolio			X
PowerShares DWA NASDAQ Momentum Portfolio			X
PowerShares DWA Technology Momentum Portfolio			X
PowerShares DWA Utilities Momentum Portfolio			X
PowerShares Dynamic Biotechnology & Genome Portfolio			X
PowerShares Dynamic Building & Construction Portfolio			X
PowerShares Dynamic Energy Exploration & Production Portfolio			X
PowerShares Dynamic Food & Beverage Portfolio			X
PowerShares Dynamic Large Cap Growth Portfolio			X
PowerShares Dynamic Large Cap Value Portfolio			X
PowerShares Dynamic Leisure and Entertainment Portfolio			X
PowerShares Dynamic Market Portfolio			X
PowerShares Dynamic Media Portfolio			X
PowerShares Dynamic Networking Portfolio			X
PowerShares Dynamic Oil & Gas Services Portfolio			X
PowerShares Dynamic Pharmaceuticals Portfolio			X
PowerShares Dynamic Retail Portfolio			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 Median*	Equal to/Lower than Open-End Active Fund Median
PowerShares Dynamic Semiconductors Portfolio			X
PowerShares Dynamic Software Portfolio			X
PowerShares Financial Preferred Portfolio		N/A	X
PowerShares FTSE RAFI US 1000 Portfolio			X
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio	X		X
PowerShares Russell Top 200 Equal Weight Portfolio		X	X
PowerShares Russell Top 200 Pure Growth Portfolio			X
PowerShares Russell Top 200 Pure Value Portfolio			X
PowerShares Russell Midcap Equal Weight Portfolio			X
PowerShares Russell Midcap Pure Growth Portfolio	X	X	X
PowerShares Russell Midcap Pure Value Portfolio	X		X
PowerShares Russell 2000 Equal Weight Portfolio	X		X
PowerShares Russell 2000 Pure Growth Portfolio		X	X
PowerShares Russell 2000 Pure Value Portfolio			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 Quality Portfolio			X
PowerShares Water Resources Portfolio			X
PowerShares WilderHill Clean Energy Portfolio			X
PowerShares WilderHill Progressive Energy Portfolio			X
PowerShares Zacks Micro Cap Portfolio			X

* 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			X
PowerShares Buyback Achievers Portfolio			X
PowerShares Cleantech Portfolio			X
PowerShares Dividend Achievers Portfolio		X	X
PowerShares DWA Basic Materials Momentum Portfolio			X
PowerShares DWA Consumer Cyclicals Momentum Portfolio			X
PowerShares DWA Consumer Staples Momentum Portfolio			X
PowerShares DWA Energy Momentum Portfolio			X
PowerShares DWA Financial Momentum Portfolio			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			X
PowerShares DWA Industrials Momentum Portfolio			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			X
PowerShares Dynamic Building & Construction Portfolio			X
PowerShares Dynamic Energy Exploration & Production Portfolio			X
PowerShares Dynamic Food & Beverage Portfolio			X
PowerShares Dynamic Large Cap Growth Portfolio			X
PowerShares Dynamic Large Cap Value Portfolio			X
PowerShares Dynamic Leisure and Entertainment Portfolio			X
PowerShares Dynamic Market Portfolio			X
PowerShares Dynamic Media Portfolio			X
PowerShares Dynamic Networking Portfolio			X
PowerShares Dynamic Oil & Gas Services Portfolio			X
PowerShares Dynamic Pharmaceuticals Portfolio			X
PowerShares Dynamic Retail Portfolio			X
PowerShares Dynamic Semiconductors Portfolio			X
PowerShares Dynamic Software Portfolio			X
PowerShares Financial Preferred Portfolio		N/A	X
PowerShares FTSE RAFI US 1000 Portfolio	X	X	X
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio	X	X	X
PowerShares Russell Top 200 Equal Weight Portfolio		X	X
PowerShares Russell Top 200 Pure Growth Portfolio		X	X
PowerShares Russell Top 200 Pure Value Portfolio			X
PowerShares Russell Midcap Equal Weight Portfolio		X	X
PowerShares Russell Midcap Pure Growth Portfolio	X	X	X
PowerShares Russell Midcap Pure Value Portfolio	X		X
PowerShares Russell 2000 Equal Weight Portfolio	X	X	X
PowerShares Russell 2000 Pure Growth Portfolio		X	X
PowerShares Russell 2000 Pure 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 Quality Portfolio	X	X	X
PowerShares Water Resources Portfolio			X
PowerShares WilderHill Clean Energy Portfolio			X
PowerShares WilderHill Progressive Energy Portfolio			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 Cap agreed to by the Adviser. 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.

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

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

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.

©2016 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, 2016

2016 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	85

2

The Market Environment

US Equity

Although the health of individual economic sectors varied dramatically, the US economy overall continued its slow but steady growth during the fiscal year ended April 30, 2016. This modest growth led to recurring debate over whether the US economy could withstand global recessionary forces. Many energy, industrial and materials companies experienced cyclical downturns resembling a mild recession even as many consumer-related companies benefited from continued low interest rates, increased availability of credit and a better employment picture. Another significant downturn in oil prices reduced capital investment but also reduced consumers’ energy and gasoline costs.

In the first half of the reporting period, US equity market performance was greatly affected by expectations of when, and whether, the US Federal Reserve (the “Fed”) might raise interest rates—and the impact the Fed’s action might have. Markets moved lower in the summer of 2015 as a significant downturn in China’s financial markets and weak global economic growth led to increased concern about the sustainability of US economic growth. In the fall, markets rallied and the Fed saw enough economic stabilization to finally raise interest rates.

US stocks began 2016 on a negative note. Together with a sharp decline in oil prices, this suggested a global recession might be imminent and caused investors to become decidedly risk averse; this helped short-term and income-oriented investments, but hurt longer-term and growth-oriented investments. As companies reported earnings and fundamentals that were better than had been feared, stocks rallied sharply in late February and March. Additionally, oil prices strengthened modestly on the back of a weaker US dollar and as Saudi Arabia and Russia considered a freeze on their oil output. Overall, US equity markets were mixed, with the S&P 500 Index, considered representative of the performance of the US stock market, finishing the reporting period modestly higher.

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 Group, Inc. (the “Index Provider”) compiles, maintains and calculates the Index. Strictly in accordance with its 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 Group 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, 2016, on a market price basis, the Fund returned (24.88)%. On a net asset value (“NAV”) basis, the Fund returned (24.92)%. During the same time period, the Index returned (25.32)%. 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 revenue generated through the Fund’s securities lending program offset by 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 (7.90)%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 19 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 biotechnology sub-industry. 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. Therefore, although the Benchmark Index is relevant as a comparison, the pure biotechnology exposure represented by the Benchmark Index may produce potentially significant differences in performance when compared to the Fund. Relative to the Benchmark Index, the Fund was most overweight in the pharmaceuticals sub-industry and most underweight in the biotechnology sub-industry during the fiscal year ended April 30, 2016. The majority of the Fund’s underperformance relative to the Benchmark Index during the period can be attributed to the Fund’s allocation to the biotechnology sub-industry.

For the fiscal year ended April 30, 2016, there were no contributing sub-industries. The biotechnology sub-industry detracted most significantly from the Fund’s return, followed by the health care equipment and pharmaceuticals sub-industries, respectively.

Positions that contributed most significantly to the Fund’s return included Neurocrine Biosciences, Inc., a biotechnology company (portfolio average weight of 2.22%), and Innoviva, Inc., a pharmaceuticals company (portfolio average weight of 2.11%). Positions that detracted most significantly from the Fund’s return included BioCryst Pharmaceuticals, Inc., a biotechnology company (no longer held at fiscal year-end), and MannKind Corp., a biotechnology company (no longer held at fiscal year-end).

4

PowerShares Dynamic Biotechnology & Genome Portfolio (PBE) (continued)

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2016
Biotechnology	95.1
Pharmaceuticals	4.9
Money Market Funds Plus Other Assets Less Liabilities	0.0
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2016
Security
Amgen, Inc.	5.0
BioMarin Pharmaceutical, Inc.	5.0
Biogen, Inc.	4.9
Gilead Sciences, Inc.	4.7
Alexion Pharmaceuticals, Inc.	4.7
Incyte Corp.	4.6
Vertex Pharmaceuticals, Inc.	4.6
Regeneron Pharmaceuticals, Inc.	4.5
Medivation, Inc.	4.2
Lexicon Pharmaceuticals, Inc.	3.9
Total	46.1

* Excluding money market fund holdings.

5

PowerShares Dynamic Biotechnology & Genome Portfolio (PBE) (continued)

Growth of a $10,000 Investment

Fund Performance History as of April 30, 2016

	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 Biotechnology & Genome IntellidexSM Index		(25.32	)%		12.34	%		41.78	%		11.92	%		75.63	%		9.28	%		142.89	%		10.12	%		184.75	%
S&P Composite 1500 Biotech Index		(7.90	)		17.96			64.15			27.15			232.35			15.33			316.41			15.72			387.90
Fund
NAV Return		(24.92	)		12.30			41.62			11.58			72.96			8.84			133.23			9.71			173.35
Market Price Return		(24.88	)		12.29			41.57			11.54			72.66			8.82			132.96			9.70			173.17

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, 2017. 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 their respective 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.

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 Group, Inc. (the “Index Provider”) compiles, maintains and calculates the Index. Strictly in accordance with its 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 Group Intellidex^SM 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, 2016, on a market price basis, the Fund returned 9.26%. On a net asset value (“NAV”) basis, the Fund returned 9.21%. During the same time period, the Index returned 9.98%. 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 Composite 1500 Construction & Engineering Index (the “Benchmark Index”) returned 1.01%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 15 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.

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 building products sub-industry and most underweight in the construction & engineering sub-industry during the fiscal year ended April 30, 2016. The majority of the Fund’s outperformance relative to the Benchmark Index during that period can be attributed to the Fund’s allocation among the building products and construction materials sub-industries, as well as stock selection within the construction & engineering sub-industry.

For the fiscal year ended April 30, 2016, the construction materials sub-industry contributed most significantly to the Fund’s return, followed by the building products and construction & engineering sub-industries, respectively. The industrial machinery sub-industry detracted most significantly from the Fund’s return, followed by the forest products and construction machinery & heavy trucks sub-industries, respectively.

Positions that contributed most significantly to the Fund’s return included Vulcan Materials Co., a construction materials company (portfolio average weight of 5.04%), and The Home Depot, Inc., a home improvement retail company (portfolio average weight of 5.05%). Positions that detracted most significantly from the Fund’s return included Boise Cascade Co., a forest products company (portfolio average weight of 2.50%), and Ingersoll-Rand PLC, an industrial machinery company (no longer held at fiscal year-end).

7

PowerShares Dynamic Building & Construction Portfolio (PKB) (continued)

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2016
Construction & Engineering	24.9
Building Products	23.6
Construction Materials	18.5
Home Improvement Retail	9.6
Homebuilding	9.5
Forest Products	3.0
Heavy Electrical Equipment	3.0
Multi-Utilities	2.7
Distributors	2.6
Environmental & Facilities Services	2.6
Money Market Fund Plus Other Assets Less Liabilities	0.0
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2016
Security
Martin Marietta Materials, Inc.	5.3
Fluor Corp.	5.2
D.R. Horton, Inc.	4.9
Lowe’s Cos., Inc.	4.9
Vulcan Materials Co.	4.9
A.O. Smith Corp.	4.8
Home Depot, Inc. (The)	4.7
NVR, Inc.	4.6
Builders FirstSource, Inc.	3.4
MasTec, Inc.	3.4
Total	46.1

* Excluding money market fund holdings.

8

PowerShares Dynamic Building & Construction Portfolio (PKB) (continued)

Growth of a $10,000 Investment

Fund Performance History as of April 30, 2016

	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 Building & Construction IntellidexSM Index		9.98	%		9.30	%		30.57	%		13.29	%		86.60	%		4.89	%		61.22	%		6.45	%		92.88	%
S&P Composite 1500 Construction & Engineering Index		1.01			1.44			4.38			0.55			2.81			3.02			34.71			6.06			85.66
Fund
NAV Return		9.21			8.55			27.90			12.39			79.35			4.03			48.43			5.56			76.63
Market Price Return		9.26			8.58			28.03			12.43			79.61			4.03			48.52			5.56			76.51

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, 2017. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.65% 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 their respective 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

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 Group, Inc. (the “Index Provider”) compiles, maintains and calculates the Index. Strictly in accordance with its 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 NYSE Group Intellidex^SM 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, 2016, on a market price basis, the Fund returned (26.91)%. On a net asset value (“NAV”) basis, the Fund returned (26.93)%. During the same time period, the Index returned (26.99)%. 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 revenue generated through the Fund’s securities lending program offset by 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 (29.54)%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 35 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 sub-industry benchmark. The Benchmark Index was also selected for its recognition in the marketplace, and its shared exposure to the oil & gas exploration & production 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 oil & gas refining & marketing sub-industry and most underweight in the oil & gas exploration & production sub-industry during the fiscal year ended April 30, 2016. 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 integrated oil & gas sub-industry.

For the fiscal year ended April 30, 2016, the integrated oil & gas sub-industry was the only contributing sub-industry. The oil & gas refining & marketing sub-industry detracted most significantly from the Fund’s return, followed by the oil & gas exploration & production sub-industry.

Positions that contributed most significantly to the Fund’s return included Whiting Petroleum Corp., an oil & gas exploration & production company (portfolio average weight of 1.07%), and SM Energy Co., an oil & gas exploration & production company (portfolio average weight of 2.81%). Positions that detracted most significantly from the Fund’s return included Devon Energy Corp., an oil & gas exploration & production company (no longer held at fiscal year-end), and EP Energy Corp. Class A, 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, 2016
Oil & Gas Exploration & Production	64.8
Oil & Gas Refining & Marketing	31.1
Integrated Oil & Gas	4.1
Money Market Funds Plus Other Assets Less Liabilities	(0.0)
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2016
Security
SM Energy Co.	7.1
Whiting Petroleum Corp.	6.2
ConocoPhillips	5.2
Hess Corp.	5.1
Pioneer Natural Resources Co.	5.0
WPX Energy, Inc.	4.6
EOG Resources, Inc.	4.5
Southwestern Energy Co.	4.2
Marathon Petroleum Corp.	4.2
Occidental Petroleum Corp.	4.0
Total	50.1

* Excluding money market fund holdings.

10

PowerShares Dynamic Energy Exploration & Production Portfolio (PXE) (continued)

Growth of a $10,000 Investment

Fund Performance History as of April 30, 2016

	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 Energy Exploration & Production IntellidexSM Index		(26.99	)%		(7.05	)%		(19.70	)%		(1.49	)%		(7.21	)%		3.79	%		45.03	%		5.13	%		69.27	%
S&P Composite 1500 Oil & Gas Exploration & Production Index		(29.54	)		(7.24	)		(20.18	)		(6.72	)		(29.38	)		1.83			19.84			2.75			33.02
Fund
NAV Return		(26.93	)		(7.44	)		(20.71	)		(2.05	)		(9.84	)		3.19			36.87			4.52			59.22
Market Price Return		(26.91	)		(7.40	)		(20.60	)		(2.04	)		(9.78	)		3.17			36.65			4.51			59.03

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, 2017. 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 their respective 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.

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 Group, Inc. (the “Index Provider”) compiles, maintains and calculates the Index. Strictly in accordance with its 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 Group 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, 2016, on a market price basis, the Fund returned 4.10%. On a net asset value (“NAV”) basis, the Fund returned 4.06%. During the same time period, the Index returned 4.71%. 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 17.54%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 40 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 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.

Relative to the Benchmark Index, the Fund was most overweight in the food retail sub-industry and most underweight in the tobacco sub-industry during the fiscal year ended April 30, 2016. The majority of the Fund’s underperformance relative to the Benchmark Index during the period can be attributed to the Fund’s allocation to the food retail sub-industry.

For the fiscal year ended April 30, 2016, the packaged foods & meats sub-industry contributed most significantly to the Fund’s return, followed by the restaurants and soft drinks sub-industries, respectively. The food retail sub-industry detracted most significantly from the Fund’s return, followed by the agricultural products sub-industry.

Positions that contributed most significantly to the Fund’s return included Tyson Foods, Inc. Class A, a consumer staples company (portfolio average weight of 2.28%), and Ingredion, Inc., a consumer staples company (portfolio average weight of 2.77%). Positions that detracted most significantly from the Fund’s return included SUPERVALU, Inc., a consumer staples company (portfolio average weight of 2.47%), and Bunge Limited, a consumer staples company (no longer held at fiscal year-end).

12

PowerShares Dynamic Food & Beverage Portfolio (PBJ) (continued)

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2016
Packaged Foods & Meats	46.6
Restaurants	15.7
Food Retail	10.0
Agricultural Products	8.9
Soft Drinks	8.3
Distillers & Vintners	5.3
Food Distributors	5.2
Money Market Fund Plus Other Assets Less Liabilities	(0.0)
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2016
Security
Constellation Brands, Inc., Class A	5.4
McDonald’s Corp.	5.3
Sysco Corp.	5.2
Mondelez International, Inc., Class A	5.1
Tyson Foods, Inc., Class A	4.9
Starbucks Corp.	4.7
Hormel Foods Corp.	4.4
Kroger Co. (The)	4.4
Sonic Corp.	3.3
National Beverage Corp.	3.3
Total	46.0

* Excluding money market fund holdings.

13

PowerShares Dynamic Food & Beverage Portfolio (PBJ) (continued)

Growth of a $10,000 Investment

Fund Performance History as of April 30, 2016

	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 Food & Beverage IntellidexSM Index		4.71	%		13.06	%		44.54	%		12.44	%		79.75	%		10.19	%		163.77	%		9.69	%		172.72	%
S&P Composite 1500 Food Beverage & Tobacco Index		17.54			13.58			46.51			15.17			102.59			13.71			261.56			13.30			287.78
Fund
NAV Return		4.06			12.32			41.71			11.70			73.86			9.46			146.83			8.96			153.71
Market Price Return		4.10			12.32			41.72			11.63			73.36			9.45			146.77			8.95			153.63

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, 2017. 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 their respective 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.

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 Group, Inc. (or the “Index Provider”) compiles, maintains and calculates the Index. Strictly in accordance with its 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 Group 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, 2016, on a market price basis, the Fund returned (1.73)%. On a net asset value (“NAV”) basis, the Fund returned (1.73)%. During the same time period, the Index returned (1.03)%. 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 Hotels, Restaurants & Leisure Index (the “Benchmark Index”) returned 9.33%. 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 compares to another leisure and entertainment 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 representation of the leisure and 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 airlines sub-industry and most underweight in the restaurants sub-industry during the fiscal year ended April 30, 2016. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to the Fund’s allocation to and stock selection within the restaurants sub-industry.

For the fiscal year ended April 30, 2016, the airlines sub-industry contributed most significantly to the Fund’s return, followed by the restaurants and leisure facilities sub-industries, respectively. The hotels, resorts & cruise lines sub-industry detracted most significantly from the Fund’s return, followed by the cable & satellite and movies & entertainment sub-industries, respectively.

Positions that contributed most significantly to the Fund’s return included Hawaiian Holdings, Inc., an airlines company (portfolio average weight of 3.02%), and Virgin America, Inc., an airlines company (portfolio average weight of 1.95%). Positions that detracted most significantly from the Fund’s return included Diamond Resorts International, Inc., a hotels resorts & cruise lines company (no longer held at fiscal year-end), and American Airlines Group, Inc., an airlines company (portfolio average weight of 5.06%).

15

PowerShares Dynamic Leisure and Entertainment Portfolio (PEJ) (continued)

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2016
Restaurants	37.1
Airlines	35.9
Leisure Facilities	8.5
Casinos & Gaming	5.4
Internet Retail	5.2
Hotels, Resorts & Cruise Lines	5.0
Cable & Satellite	3.0
Money Market Fund Plus Other Assets Less Liabilities	(0.1)
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2016
Security
McDonald’s Corp.	5.3
Priceline Group, Inc. (The)	5.2
Southwest Airlines Co.	5.2
Carnival Corp.	4.9
Virgin America, Inc.	4.8
Starbucks Corp.	4.7
Delta Air Lines, Inc.	4.2
American Airlines Group, Inc.	4.1
United Continental Holdings, Inc.	3.9
SkyWest, Inc.	3.5
Total	45.8

* Excluding money market fund holdings.

16

PowerShares Dynamic Leisure and Entertainment Portfolio (PEJ) (continued)

Growth of a $10,000 Investment

Fund Performance History as of April 30, 2016

	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 Leisure & Entertainment IntellidexSM Index		(1.03	)%		10.79	%		35.99	%		14.57	%		97.41	%		9.80	%		154.66	%		10.06	%		182.88	%
S&P Composite 1500 Hotels, Restaurants & Leisure Index		9.33			12.90			43.91			14.22			94.43			11.16			187.95			11.53			226.88
Fund
NAV Return		(1.73	)		9.98			33.01			13.70			89.98			9.14			139.78			9.39			164.74
Market Price Return		(1.73	)		9.99			33.08			13.69			89.92			9.13			139.63			9.39			164.75

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, 2017. 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 their respective 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.

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 Group, Inc. (the “Index Provider”) compiles, maintains and calculates the Index. Strictly in accordance with its 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. The Index Provider ranks the stocks based on their capital appreciation potential using a proprietary NYSE Group 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, 2016, on a market price basis, the Fund returned (5.18)%. On a net asset value (“NAV”) basis, the Fund returned (5.18)%. During the same time period, the Index returned (4.51)%. 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 Media Index (the “Benchmark Index”) returned (0.89)%. 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, 2016. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to the Fund’s allocation to and stock selection within the cable & satellite sub-industry.

For the fiscal year ended April 30, 2016, the internet software & services sub-industry contributed most significantly to the Fund’s return, followed by the publishing and specialized REITs sub-industries, respectively. The broadcasting sub-industry detracted most significantly from the Fund’s return, followed by the movies & entertainment and internet retail sub-industries, respectively.

Positions that contributed most significantly to the Fund’s return included Facebook, Inc., Class A, an information technology company (portfolio average weight of 3.88%), and Cablevision Systems Corporation, Class A, a consumer discretionary company (portfolio average weight of 3.04%). Positions that detracted most significantly from the Fund’s return included Viacom Inc., Class B, a consumer discretionary company (portfolio average weight of 2.14%), and Clear Channel Outdoor Holdings, Inc., Class A, a consumer discretionary company (no longer held at fiscal year-end).

18

PowerShares Dynamic Media Portfolio (PBS) (continued)

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2016
Movies & Entertainment	22.0
Broadcasting	18.7
Internet Software & Services	15.3
Cable & Satellite	12.7
Advertising	9.9
Publishing	8.4
Research & Consulting Services	2.9
Diversified Support Services	2.7
IT Consulting & Other Services	2.6
Catalog Retail	2.5
Data Processing & Outsourced Services	2.4
Money Market Fund Plus Other Assets Less Liabilities	(0.1)
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2016
Security
CBS Corp., Class B	5.3
Time Warner, Inc.	5.1
Twenty-First Century Fox, Inc., Class A	5.1
Facebook, Inc., Class A	5.0
Walt Disney Co. (The)	4.9
Sirius XM Holdings, Inc.	4.9
Omnicom Group, Inc.	4.9
Alphabet, Inc., Class A	4.5
DreamWorks Animation SKG, Inc., Class A	4.0
Bankrate, Inc.	3.1
Total	46.8

* Excluding money market fund holdings.

19

PowerShares Dynamic Media Portfolio (PBS) (continued)

Growth of a $10,000 Investment

Fund Performance History as of April 30, 2016

	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 Media IntellidexSM Index		(4.51	)%		9.16	%		30.08	%		11.53	%		72.58	%		7.04	%		97.52	%		6.24	%		92.80	%
S&P Composite 1500 Media Index		(0.89	)		13.41			45.86			16.88			118.12			10.77			178.15			9.92			179.03
Fund
NAV Return		(5.18	)		8.41			27.40			10.74			66.52			6.44			86.59			5.60			80.72
Market Price Return		(5.18	)		8.41			27.41			10.73			66.46			6.43			86.51			5.60			80.65

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, 2017. 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 their respective 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.

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 Group, Inc. (the “Index Provider”) compiles, maintains and calculates the Index. Strictly in accordance with its 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 the Index Provider 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 NYSE Group Intellidex^SM 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, 2016, on a market price basis, the Fund returned (8.16)%. On a net asset value (“NAV”) basis, the Fund returned (8.19)%. During the same time period, the Index returned (7.85)%. 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; however, that underperformance due to fees and expenses was partially offset by revenue generated through the Fund’s securities lending program.

During this same time period, the S&P Composite 1500 Communications Equipment Index (the “Benchmark Index”) returned (8.18)%. 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 a similar networking industry benchmark.

The Benchmark Index was selected for its recognition in the marketplace, and its exposure to the communications equipment sub-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 semiconductors sub-industry during the fiscal year ended April 30, 2016. The Fund’s NAV basis return for the period was in line with that of the Benchmark Index; however, differences resulted primarily due to the Fund’s allocation to the systems software sub-industry as well as fees and operating expenses that the Fund incurred during the period, which were partially offset by revenue generated through the Fund’s securities lending program.

For the fiscal year ended April 30, 2016, the application software sub-industry contributed most significantly to the Fund’s return, followed by the electronic components and semiconductors sub-industries, respectively. The systems software sub-industry detracted most significantly from the Fund’s return, followed by the electronic equipment & instruments and technology hardware storage & peripherals sub-industries, respectively.

Positions that contributed most significantly to the Fund’s return included Motorola Solutions, Inc., a communications equipment company (portfolio average weight of 4.69%), and Citrix Systems, Inc., an application software company (portfolio average weight of 4.74%). Positions that detracted most significantly from the Fund’s return included CyberArk Software Ltd., a systems software company (no longer held at fiscal year-end), and Qualys, Inc., a systems software company (no longer held at fiscal year-end).

21

PowerShares Dynamic Networking Portfolio (PXQ) (continued)

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2016
Communications Equipment	64.7
Systems Software	18.4
Application Software	5.4
Electronic Components	5.0
Electronic Equipment & Instruments	3.9
Electronic Manufacturing Services	2.6
Money Market Funds Plus Other Assets Less Liabilities	0.0
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2016
Security
Citrix Systems, Inc.	5.4
Amphenol Corp., Class A	5.0
Cisco Systems, Inc.	4.9
Palo Alto Networks, Inc.	4.8
CA, Inc.	4.8
Motorola Solutions, Inc.	4.8
Check Point Software Technologies Ltd.	4.7
Juniper Networks, Inc.	4.5
Fitbit, Inc., Class A	3.9
Ruckus Wireless, Inc.	3.7
Total	46.5

* Excluding money market fund holdings.

22

PowerShares Dynamic Networking Portfolio (PXQ) (continued)

Growth of a $10,000 Investment

Fund Performance History as of April 30, 2016

	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 Networking IntellidexSM Index		(7.85	)%		11.31	%		37.93	%		3.74	%		20.18	%		7.70	%		109.97	%		8.57	%		144.20	%
S&P Composite 1500 Communications Equipment Index		(8.18	)		6.47			20.69			5.16			28.62			1.78			19.24			3.59			46.67
Fund
NAV Return		(8.19	)		10.67			35.56			3.07			16.33			6.97			96.25			7.89			128.00
Market Price Return		(8.16	)		10.72			35.72			3.07			16.33			6.99			96.59			7.89			128.00

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, 2017. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.85% 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 their respective 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.

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 Group, Inc. (the “Index Provider”) compiles, maintains and calculates the Index. Strictly in accordance with its 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 the Index Provider 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 NYSE Group Intellidex^SM 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, 2016, on a market price basis, the Fund returned (29.15)%. On a net asset value (“NAV”) basis, the Fund returned (29.06)%. During the same time period, the Index returned (28.64)%. 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 (19.81)%. 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 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, 2016. 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, 2016, there were no contributing sub-industries. The oil & gas equipment & services sub-industry detracted most significantly from the Fund’s return, followed by the oil & gas drilling and oil & gas storage & transportation sub-industries, respectively.

Positions that contributed most significantly to the Fund’s return included Cameron International Corporation, an oil & gas equipment & services company (no longer held at fiscal year-end), and RPC, Inc., an oil & gas equipment & services company (portfolio average weight of 2.16%). Positions that detracted most significantly from the Fund’s return included Atwood Oceanics, Inc., an oil & gas drilling company (no longer held at fiscal year-end), and Weatherford International PLC, an oil & gas equipment & services company (portfolio average weight of 4.34%).

24

PowerShares Dynamic Oil & Gas Services Portfolio (PXJ) (continued)

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2016
Oil & Gas Equipment & Services	55.2
Oil & Gas Drilling	32.9
Oil & Gas Storage & Transportation	11.9
Money Market Funds Plus Other Assets Less Liabilities	(0.0)
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2016
Security
Seadrill Ltd.	5.3
Core Laboratories NV	4.9
Weatherford International PLC	4.9
Halliburton Co.	4.9
National Oilwell Varco, Inc.	4.8
Helmerich & Payne, Inc.	4.8
FMC Technologies, Inc.	4.8
Schlumberger Ltd.	4.3
Baker Hughes, Inc.	4.2
Forum Energy Technologies, Inc.	3.2
Total	46.1

* Excluding money market fund holdings.

25

PowerShares Dynamic Oil & Gas Services Portfolio (PXJ) (continued)

Growth of a $10,000 Investment

Fund Performance History as of April 30, 2016

	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 Oil Services IntellidexSM Index		(28.64	)%		(14.82	)%		(38.20	)%		(11.76	)%		(46.51	)%		(3.71	)%		(31.50	)%		(1.04	)%		(10.39	)%
S&P Composite 1500 Energy Equipment & Services Index		(19.81	)		(5.20	)		(14.79	)		(6.00	)		(26.62	)		(0.07	)		(0.66	)		3.04			37.02
Fund
NAV Return		(29.06	)		(15.39	)		(39.42	)		(12.35	)		(48.28	)		(4.29	)		(35.48	)		(1.64	)		(15.92	)
Market Price Return		(29.15	)		(15.41	)		(39.47	)		(12.37	)		(48.32	)		(4.31	)		(35.65	)		(1.64	)		(15.98	)

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, 2017. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.64% 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 their respective 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.

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, including companies that facilitate the testing or regulatory approval of drugs.

NYSE Group, Inc. (or the “Index Provider”) compiles, maintains and calculates the Index. Strictly in accordance with its 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 Group 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, 2016, on a market price basis, the Fund returned (11.83)%. On a net asset value (“NAV”) basis, the Fund returned (11.86)%. During the same time period, the Index returned (11.39)%. 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 (1.39)%. 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 a similar pharmaceuticals sub-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 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 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, 2016. The majority of the Fund’s underperformance 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, 2016, the health care equipment sub-industry was the only contributing sub-industry. The pharmaceuticals sub-industry detracted most significantly from the Fund’s return, followed by the biotechnology sub-industry.

Positions that contributed most significantly to the Fund’s return included Ligand Pharmaceuticals, Inc., a biotechnology company (portfolio average weight of 4.26%), and Prestige Brands Holdings, Inc., a pharmaceuticals company (portfolio average weight of 4.05%). Positions that detracted most significantly from the Fund’s return included Lannett Co., Inc., a pharmaceuticals company (portfolio average weight of 3.60%), and Perrigo Co. PLC, a pharmaceuticals company (portfolio average weight of 3.85%).

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2016
Pharmaceuticals	59.9
Biotechnology	31.9
Health Care Equipment	8.2
Money Market Funds Plus Other Assets Less Liabilities	0.0
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2016
Security
Bristol-Myers Squibb Co.	5.7
Merck & Co., Inc.	5.3
Pfizer, Inc.	5.3
Amgen, Inc.	5.3
Johnson & Johnson	5.2
Eli Lilly & Co.	5.0
Gilead Sciences, Inc.	4.9
Ligand Pharmaceuticals, Inc.	4.9
Heron Therapeutics, Inc.	4.5
Prestige Brands Holdings, Inc.	4.4
Total	50.5

* Excluding money market fund holdings.

27

PowerShares Dynamic Pharmaceuticals Portfolio (PJP) (continued)

Growth of a $10,000 Investment

Fund Performance History as of April 30, 2016

	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 Pharmaceutical IntellidexSM Index		(11.39	)%		19.25	%		69.58	%		22.33	%		173.90	%		16.61	%		365.05	%		16.42	%		420.81	%
S&P Composite 1500 Pharmaceuticals Index		(1.39	)		13.00			44.30			16.17			111.54			10.45			170.07			9.26			161.37
Fund
NAV Return		(11.86	)		18.58			66.74			21.59			165.72			15.87			336.08			15.71			387.29
Market Price Return		(11.83	)		18.57			66.68			21.56			165.40			15.85			335.64			15.71			387.41

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, 2017. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.56%. 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 their respective 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.

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 Group, Inc. (the “Index Provider”) compiles, maintains and calculates the Index. Strictly in accordance with its 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 Group 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, 2016, on a market price basis, the Fund returned (6.42)%. On a net asset value (“NAV”) basis, the Fund returned (6.40)%. During the same time period, the Index returned (5.83)%. 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 13.35%. 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 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, 2016. 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 retail sub-industry.

For the fiscal year ended April 30, 2016, the internet software & services sub-industry contributed most significantly to the Fund’s return, followed by the automotive retail and general merchandise stores sub-industries, respectively. The computer & electronics retail sub-industry detracted most significantly from the Fund’s return, followed by the food retail and forest products sub-industries, respectively.

Positions that contributed most significantly to the Fund’s return included Stamps.com, Inc., an internet software & services company (portfolio average weight of 2.84%), and The Home Depot, Inc. , a home improvement retail company (portfolio average weight of 4.63%). Positions that detracted most significantly from the Fund’s return included SUPERVALU, Inc., a food retail company (portfolio average weight of 2.51%), and Rent-A-Center, Inc., a computer & electronics retail company (no longer held at fiscal year-end).

29

PowerShares Dynamic Retail Portfolio (PMR) (continued)

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2016
Apparel Retail	28.1
Food Retail	12.8
Drug Retail	12.7
Automotive Retail	9.7
Specialty Stores	8.4
Trucking	5.4
Home Improvement Retail	5.2
General Merchandise Stores	3.5
Forest Products	3.3
Homefurnishing Retail	3.1
Hypermarkets & Super Centers	3.0
Distributors	2.9
Internet Software & Services	1.9
Money Market Fund Plus Other Assets Less Liabilities	0.0
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2016
Security
Home Depot, Inc. (The)	5.2
CVS Health Corp.	5.1
Ross Stores, Inc.	5.0
O’Reilly Automotive, Inc.	4.9
Walgreens Boots Alliance, Inc.	4.9
AutoZone, Inc.	4.8
L Brands, Inc.	4.6
Kroger Co. (The)	4.4
Ollie’s Bargain Outlet Holdings, Inc.	3.5
Ulta Salon, Cosmetics & Fragrance, Inc.	3.4
Total	45.8

* Excluding money market fund holdings.

30

PowerShares Dynamic Retail Portfolio (PMR) (continued)

Growth of a $10,000 Investment

Fund Performance History as of April 30, 2016

	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 Retail IntellidexSM Index		(5.83	)%		8.72	%		28.50	%		12.47	%		79.93	%		8.64	%		128.98	%		10.20	%		177.66	%
S&P Composite 1500 Retailing Index		13.35			19.26			69.61			19.17			140.33			11.58			199.26			12.23			236.22
Fund
NAV Return		(6.40	)		7.92			25.70			11.63			73.35			7.91			114.16			9.48			159.10
Market Price Return		(6.42	)		7.93			25.74			11.61			73.19			7.92			114.28			9.47			158.92

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, 2017. 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 0.63%. 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 their respective 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.

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 Group, Inc. (the “Index Provider”) compiles, maintains and calculates the Index. Strictly in accordance with its 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 Group 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, 2016, on a market price basis, the Fund returned (6.80)%. On a net asset value (“NAV”) basis, the Fund returned (6.69)%. During the same time period, the Index returned (6.01)%. 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 (1.85)%. 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 sub-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, 2016. The majority of the Fund’s underperformance 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, 2016, the semiconductor equipment sub-industry contributed most significantly to the Fund’s return, followed by the communications equipment sub-industry (no longer held at fiscal year-end). The semiconductors sub-industry detracted most significantly from the Fund’s return, followed by the electronic components sub-industry (no longer held at fiscal year-end).

Positions that contributed most significantly to the Fund’s return included NVIDIA Corp., a semiconductors company (portfolio average weight of 3.93%), and Cirrus Logic, Inc., a semiconductors company (no longer held at fiscal year-end). Positions that detracted most significantly from the Fund’s return included Micron Technology, Inc., a semiconductors company (no longer held at fiscal year-end), and Skyworks Solutions, Inc., a semiconductors company (portfolio average weight of 4.41%).

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2016
Semiconductors	67.7
Semiconductor Equipment	32.3
Money Market Fund Plus Other Assets Less Liabilities	(0.0)
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2016
Security
NVIDIA Corp.	5.4
Broadcom Ltd.	5.2
Applied Materials, Inc.	5.2
Texas Instruments, Inc.	5.1
Analog Devices, Inc.	5.1
Skyworks Solutions, Inc.	4.9
Intel Corp.	4.9
QUALCOMM, Inc.	4.7
Inphi Corp.	3.1
Silicon Laboratories, Inc.	3.0
Total	46.6

* Excluding money market fund holdings.

32

PowerShares Dynamic Semiconductors Portfolio (PSI) (continued)

Growth of a $10,000 Investment

Fund Performance History as of April 30, 2016

	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 Semiconductor IntellidexSM Index		(6.01	)%		19.22	%		69.47	%		7.77	%		45.39	%		3.23	%		37.42	%		5.92	%		86.71	%
S&P Composite 1500 Semiconductor Index		(1.85	)		15.57			54.36			8.46			50.10			5.58			72.18			5.39			76.77
Fund
NAV Return		(6.69	)		18.24			65.31			6.93			39.83			2.46			27.53			5.15			72.37
Market Price Return		(6.80	)		18.29			65.50			6.91			39.64			2.45			27.42			5.13			72.12

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, 2017. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.78% 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 their respective 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.

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 Group, Inc. (the “Index Provider”) compiles, maintains and calculates the Index. Strictly in accordance with its 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 Group 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, 2016, on a market price basis, the Fund returned (0.50)%. On a net asset value (“NAV”) basis, the Fund returned (0.50)%. During the same time period, the Index returned 0.24%. 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 S&P Composite 1500 Software & Services Index (the “Benchmark Index”) returned 11.15%. The Benchmark Index is an unmanaged index weighted by market capitalization 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 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, 2016. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to the Fund’s allocation to and stock selection within the internet software & services sub-industry.

For the fiscal year ended April 30, 2016, the application software sub-industry contributed most significantly to the Fund’s return, followed by the data processing & outsourced services and home entertainment software sub-industries, respectively. The systems software sub-industry detracted most significantly from the Fund’s return, followed by the health care technology and internet software & services sub-industries, respectively.

Positions that contributed most significantly to the Fund’s return included Ellie Mae, Inc., an application software company (portfolio average weight of 2.86%), and Ebix, Inc., an application software company (portfolio average weight of 1.22%). Positions that detracted most significantly from the Fund’s return included VASCO Data Security International, Inc., a systems software company (no longer held at fiscal year-end), and Tyler Technologies, Inc., an application software company (no longer held at fiscal year-end).

34

PowerShares Dynamic Software Portfolio (PSJ) (continued)

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2016
Application Software	54.7
Data Processing & Outsourced Services	13.9
Home Entertainment Software	12.0
Health Care Technology	7.5
IT Consulting & Other Services	4.6
Systems Software	4.6
Internet Software & Services	2.7
Money Market Fund Plus Other Assets Less Liabilities	(0.0)
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2016
Security
Citrix Systems, Inc.	5.4
Adobe Systems, Inc.	5.1
salesforce.com, inc.	5.1
Activision Blizzard, Inc.	5.1
Intuit, Inc.	4.9
Amdocs Ltd.	4.6
Microsoft Corp.	4.6
Electronic Arts, Inc.	4.5
Ebix, Inc.	3.6
Paylocity Holding Corp.	3.2
Total	46.1

* Excluding money market fund holdings.

35

PowerShares Dynamic Software Portfolio (PSJ) (continued)

Growth of a $10,000 Investment

Fund Performance History as of April 30, 2016

	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 Software IntellidexSM Index		0.24	%		12.73	%		43.27	%		9.76	%		59.33	%		9.34	%		144.30	%		10.73	%		202.28	%
S&P Composite 1500 Software & Services Index		11.15			15.58			54.41			14.39			95.89			10.20			164.02			10.00			181.26
Fund
NAV Return		(0.50	)		11.94			40.25			9.02			53.99			8.66			129.39			10.04			182.38
Market Price Return		(0.50	)		12.00			40.47			9.02			53.97			8.65			129.20			10.03			182.26

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, 2017. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.71% 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 their respective 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.

36

Schedule of Investments^(a)

PowerShares Dynamic Biotechnology & Genome Portfolio (PBE)

April 30, 2016

Number of Shares			Value
		Common Stocks—100.0%
		Biotechnology—95.1%
	931,454	Achillion Pharmaceuticals, Inc.(b)	$	7,963,932
	207,385	Acorda Therapeutics, Inc.(b)		5,360,902
	89,549	Alexion Pharmaceuticals, Inc.(b)		12,472,385
	118,038	Alnylam Pharmaceuticals, Inc.(b)		7,913,268
	85,036	Amgen, Inc.		13,461,199
	1,098,906	Amicus Therapeutics, Inc.(b)(c)		8,208,828
	47,455	Biogen, Inc.(b)		13,049,650
	156,618	BioMarin Pharmaceutical, Inc.(b)		13,262,412
	190,489	Emergent BioSolutions, Inc.(b)		7,337,636
	1,778,230	Exelixis, Inc.(b)(c)		8,197,640
	142,467	Gilead Sciences, Inc.		12,567,014
	829,841	Halozyme Therapeutics, Inc.(b)		8,754,823
	949,541	ImmunoGen, Inc.(b)(c)		6,504,356
	168,836	Incyte Corp.(b)		12,201,778
	565,801	Insmed, Inc.(b)		6,874,482
	380,556	Insys Therapeutics, Inc.(b)(c)		5,514,256
	204,364	Ionis Pharmaceuticals, Inc.(b)		8,372,793
	754,817	Lexicon Pharmaceuticals, Inc.(b)(c)		10,424,023
	192,471	Medivation, Inc.(b)		11,124,824
	193,014	Myriad Genetics, Inc.(b)		6,948,504
	180,069	Neurocrine Biosciences, Inc.(b)		8,207,545
	735,359	OPKO Health, Inc.(b)(c)		7,905,109
	31,837	Regeneron Pharmaceuticals, Inc.(b)		11,993,316
	262,810	Repligen Corp.(b)		7,001,258
	220,774	Seattle Genetics, Inc.(b)		7,833,062
	55,301	United Therapeutics Corp.(b)		5,817,665
	144,269	Vertex Pharmaceuticals, Inc.(b)		12,167,647
	873,239	ZIOPHARM Oncology, Inc.(b)(c)		6,863,659
				254,303,966
		Pharmaceuticals—4.9%
	304,514	Dyax Corp.(b)		338,011
	589,173	Innoviva, Inc.(c)		7,270,395
	518,258	Sucampo Pharmaceuticals, Inc., Class A(b)		5,586,821
				13,195,227
		Total Common Stocks (Cost $288,172,889)		267,499,193
		Money Market Fund—0.0%
	86,499	Invesco Premier Portfolio—Institutional Class, 0.39%(d) (Cost $86,499)		86,499
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $288,259,388)—100.0%		267,585,692

Number of Shares			Value
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—13.1%
	35,158,423	Invesco Liquid Assets Portfolio—Institutional Class, 0.44%(d)(e) (Cost $35,158,423)	$	35,158,423
		Total Investments (Cost $323,417,811)—113.1%		302,744,115
		Other assets less liabilities—(13.1)%		(35,159,983	)
		Net Assets—100.0%	$	267,584,132

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, 2016.

^(d) The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of April 30, 2016.

^(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 2H.

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, 2016

Number of Shares			Value
		Common Stocks—100.0%
		Building Products—23.6%
	37,232	A.O. Smith Corp.	$	2,875,055
	21,665	American Woodmark Corp.(b)		1,578,078
	37,129	Apogee Enterprises, Inc.		1,538,626
	185,220	Builders FirstSource, Inc.(b)		2,054,090
	58,647	Gibraltar Industries, Inc.(b)		1,551,213
	34,005	Owens Corning		1,566,610
	42,885	Simpson Manufacturing Co., Inc.		1,612,476
	18,924	Universal Forest Products, Inc.		1,450,525
				14,226,673
		Construction & Engineering—24.9%
	52,427	AECOM(b)		1,703,353
	79,827	Aegion Corp.(b)		1,694,727
	51,055	Comfort Systems USA, Inc.		1,505,612
	32,401	EMCOR Group, Inc.		1,570,801
	57,308	Fluor Corp.		3,132,455
	103,336	KBR, Inc.		1,607,908
	90,156	MasTec, Inc.(b)		2,042,935
	72,402	Quanta Services, Inc.(b)		1,717,376
				14,975,167
		Construction Materials—18.5%
	83,997	Headwaters, Inc.(b)		1,680,780
	18,865	Martin Marietta Materials, Inc.		3,192,524
	81,156	Summit Materials, Inc., Class A(b)		1,696,160
	26,977	US Concrete, Inc.(b)		1,666,100
	27,171	Vulcan Materials Co.		2,924,415
				11,159,979
		Distributors—2.6%
	17,881	Pool Corp.		1,562,978
		Environmental & Facilities Services—2.6%
	53,112	Tetra Tech, Inc.		1,561,493
		Forest Products—3.0%
	85,972	Boise Cascade Co.(b)		1,794,236
		Heavy Electrical Equipment—3.0%
	77,998	Babcock & Wilcox Enterprises, Inc.(b)		1,782,254
		Home Improvement Retail—9.6%
	21,247	Home Depot, Inc. (The)		2,844,761
	38,822	Lowe’s Cos., Inc.		2,951,248
				5,796,009
		Homebuilding—9.5%
	98,734	D.R. Horton, Inc.		2,967,944
	1,649	NVR, Inc.(b)		2,739,467
				5,707,411
		Multi-Utilities—2.7%
	80,442	MDU Resources Group, Inc.		1,613,666
		Total Common Stocks (Cost $52,499,413)		60,179,866

Number of Shares			Value
		Money Market Fund—0.1%
	76,494	Invesco Premier Portfolio—Institutional Class, 0.39%(c) (Cost $76,494)	$	76,494
		Total Investments (Cost $52,575,907)—100.1%		60,256,360
		Other assets less liabilities—(0.1)%		(55,278	)
		Net Assets—100.0%	$	60,201,082

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. The rate shown is the 7-day SEC standardized yield as of April 30, 2016.

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, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Integrated Oil & Gas—4.1%
	39,369	Occidental Petroleum Corp.	$	3,017,634
		Oil & Gas Exploration & Production—64.8%
	62,120	Antero Resources Corp.(b)		1,757,996
	122,064	Black Stone Minerals LP		2,043,351
	80,541	ConocoPhillips		3,849,054
	66,500	Continental Resources, Inc.(b)		2,477,790
	20,646	Diamondback Energy, Inc.(b)		1,787,531
	55,993	Energen Corp.		2,379,143
	40,712	EOG Resources, Inc.		3,363,625
	63,803	Hess Corp.		3,803,935
	328,713	Kosmos Energy Ltd.(b)		2,130,060
	283,352	Oasis Petroleum, Inc.(b)		2,745,681
	29,794	PDC Energy, Inc.(b)		1,870,765
	22,275	Pioneer Natural Resources Co.		3,699,878
	170,526	SM Energy Co.		5,313,590
	234,941	Southwestern Energy Co.(b)		3,155,258
	386,323	Whiting Petroleum Corp.(b)		4,635,876
	351,862	WPX Energy, Inc.(b)		3,398,987
				48,412,520
		Oil & Gas Refining & Marketing—31.1%
	149,743	Alon USA Energy, Inc.		1,572,302
	146,667	Alon USA Partners LP(c)		1,466,670
	156,956	Calumet Specialty Products Partners LP		721,998
	67,187	CVR Energy, Inc.		1,631,300
	142,212	CVR Refining LP		1,666,725
	45,573	HollyFrontier Corp.		1,622,399
	80,305	Marathon Petroleum Corp.		3,138,319
	63,459	Par Pacific Holdings, Inc.(b)		1,212,701
	51,722	PBF Energy, Inc., Class A		1,664,414
	34,742	Phillips 66		2,852,666
	18,654	Tesoro Corp.		1,486,537
	46,061	Valero Energy Corp.		2,711,611
	56,287	Western Refining, Inc.		1,506,240
				23,253,882
		Total Common Stocks and Other Equity Interests (Cost $68,190,200)		74,684,036
		Money Market Fund—0.1%
	41,644	Invesco Premier Portfolio—Institutional Class, 0.39%(d) (Cost $41,644)		41,644
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $68,231,844)—100.1%		74,725,680

Number of Shares			Value
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—0.1%
	137,250	Invesco Liquid Assets Portfolio—Institutional Class, 0.44%(d)(e) (Cost $137,250)	$	137,250
		Total Investments (Cost $68,369,094)—100.2%		74,862,930
		Other assets less liabilities—(0.2)%		(181,200	)
		Net Assets—100.0%	$	74,681,730

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, 2016.

^(d)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of April 30, 2016.

^(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 2H.

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, 2016

Number of Shares			Value
		Common Stocks—100.0%
		Agricultural Products—8.9%
	229,400	Archer-Daniels-Midland Co.	$	9,162,236
	199,520	Fresh Del Monte Produce, Inc.		8,631,235
	78,290	Ingredion, Inc.		9,010,396
				26,803,867
		Distillers & Vintners—5.3%
	103,002	Constellation Brands, Inc., Class A		16,074,492
		Food Distributors—5.2%
	338,222	Sysco Corp.		15,581,888
		Food Retail—10.0%
	370,887	Kroger Co. (The)		13,125,691
	1,618,827	SUPERVALU, Inc.(b)		8,142,700
	193,992	Weis Markets, Inc.		8,830,516
				30,098,907
		Packaged Foods & Meats—46.6%
	220,282	B&G Foods, Inc.		9,077,821
	152,189	Cal-Maine Foods, Inc.		7,725,114
	128,765	Campbell Soup Co.		7,946,088
	189,658	ConAgra Foods, Inc.		8,451,160
	413,728	Dean Foods Co.		7,128,533
	340,504	Hormel Foods Corp.		13,126,429
	62,512	JM Smucker Co. (The)		7,937,774
	119,259	John B. Sanfilippo & Son, Inc.		6,598,600
	78,815	Lancaster Colony Corp.		9,181,948
	85,330	McCormick & Co., Inc.		8,002,247
	359,584	Mondelez International, Inc., Class A		15,447,729
	113,832	Post Holdings, Inc., Class A(b)		8,177,691
	2,812	Seaboard Corp.(b)		8,444,436
	246,778	Snyder’s-Lance, Inc.		7,889,493
	224,512	Tyson Foods, Inc., Class A		14,777,380
				139,912,443
		Restaurants—15.7%
	59,385	Domino’s Pizza, Inc.		7,178,459
	124,991	McDonald’s Corp.		15,810,111
	289,475	Sonic Corp.		9,949,256
	250,797	Starbucks Corp.		14,102,315
				47,040,141
		Soft Drinks—8.3%
	45,967	Coca-Cola Bottling Co. Consolidated		7,325,761
	86,579	Dr Pepper Snapple Group, Inc.		7,870,897
	208,976	National Beverage Corp.(b)		9,767,538
				24,964,196
		Total Common Stocks (Cost $287,507,104)		300,475,934
		Money Market Fund—0.1%
	150,639	Invesco Premier Portfolio—Institutional Class, 0.39%(c) (Cost $150,639)		150,639
		Total Investments (Cost $287,657,743)—100.1%		300,626,573
		Other assets less liabilities—(0.1)%		(171,478	)
		Net Assets—100.0%	$	300,455,095

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. The rate shown is the 7-day SEC standardized yield as of April 30, 2016.

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, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.1%
		Airlines—35.9%
	50,817	Alaska Air Group, Inc.	$	3,579,041
	23,239	Allegiant Travel Co.		3,731,486
	169,965	American Airlines Group, Inc.		5,896,086
	145,155	Delta Air Lines, Inc.		6,048,609
	88,860	Hawaiian Holdings, Inc.(b)		3,738,340
	169,916	JetBlue Airways Corp.(b)		3,362,638
	214,562	SkyWest, Inc.		5,042,207
	164,736	Southwest Airlines Co.		7,348,873
	122,772	United Continental Holdings, Inc.(b)		5,624,185
	122,544	Virgin America, Inc.(b)		6,824,476
				51,195,941
		Cable & Satellite—3.0%
	158,873	Starz, Class A(b)		4,322,934
		Casinos & Gaming—5.4%
	214,806	Boyd Gaming Corp.(b)		4,003,984
	27,747	Churchill Downs, Inc.		3,723,092
				7,727,076
		Hotels, Resorts & Cruise Lines—5.0%
	143,714	Carnival Corp.		7,049,172
		Internet Retail—5.2%
	5,544	Priceline Group, Inc. (The)(b)		7,449,251
		Leisure Facilities—8.5%
	66,164	Cedar Fair LP		3,842,144
	73,431	Six Flags Entertainment Corp.		4,409,532
	29,885	Vail Resorts, Inc.		3,874,291
				12,125,967
		Restaurants—37.1%
	83,706	BJ’s Restaurants, Inc.(b)		3,733,288
	59,449	Darden Restaurants, Inc.		3,700,700
	103,079	Dave & Buster’s Entertainment, Inc.(b)		3,989,157
	365,045	Denny’s Corp.(b)		3,610,295
	28,200	Domino’s Pizza, Inc.		3,408,816
	59,340	McDonald’s Corp.		7,505,917
	18,393	Panera Bread Co., Class A(b)		3,945,115
	225,679	Ruth’s Hospitality Group, Inc.		3,583,782
	137,437	Sonic Corp.		4,723,710
	119,079	Starbucks Corp.		6,695,812
	89,945	Texas Roadhouse, Inc.		3,662,560
	403,959	Wendy’s Co. (The)		4,386,995
				52,946,147
		Total Common Stocks and Other Equity Interests (Cost $141,640,189)		142,816,488

Number of Shares			Value
		Money Market Fund—0.0%
	36,615	Invesco Premier Portfolio—Institutional Class, 0.39%(c) (Cost $36,615)	$	36,615
		Total Investments (Cost $141,676,804)—100.1%		142,853,103
		Other assets less liabilities—(0.1)%		(98,813	)
		Net Assets—100.0%	$	142,754,290

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. The rate shown is the 7-day SEC standardized yield as of April 30, 2016.

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, 2016

Number of Shares			Value
		Common Stocks—100.1%
		Advertising—9.9%
	105,282	Interpublic Group of Cos., Inc. (The)	$	2,415,169
	151,436	National CineMedia, Inc.		2,150,391
	53,122	Omnicom Group, Inc.		4,407,533
				8,973,093
		Broadcasting—18.7%
	85,357	CBS Corp., Class B		4,772,310
	89,666	Discovery Communications, Inc., Class A(b)		2,448,778
	294,732	Entravision Communications Corp., Class A		2,343,119
	51,367	Nexstar Broadcasting Group, Inc., Class A		2,636,668
	37,851	Scripps Networks Interactive, Inc., Class A		2,360,010
	74,365	Sinclair Broadcast Group, Inc., Class A		2,384,886
				16,945,771
		Cable & Satellite—12.7%
	34,036	AMC Networks, Inc., Class A(b)		2,220,168
	69,172	Cablevision Systems Corp., Class A		2,309,653
	1,117,292	Sirius XM Holdings, Inc.(b)		4,413,303
	94,288	Starz, Class A(b)		2,565,577
				11,508,701
		Catalog Retail—2.5%
	87,503	Liberty Interactive Corp. QVC Group, Series A(b)		2,292,579
		Data Processing & Outsourced Services—2.4%
	10,573	Alliance Data Systems Corp.(b)		2,149,597
		Diversified Support Services—2.7%
	80,400	Viad Corp.		2,391,900
		Internet Software & Services—15.3%
	5,688	Alphabet, Inc., Class A(b)		4,026,421
	303,891	Bankrate, Inc.(b)		2,777,564
	38,201	Facebook, Inc., Class A(b)		4,491,674
	39,994	WebMD Health Corp.(b)		2,509,223
				13,804,882
		IT Consulting & Other Services—2.6%
	108,220	Acxiom Corp.(b)		2,377,593
		Movies & Entertainment—22.0%
	90,315	DreamWorks Animation SKG, Inc., Class A(b)		3,605,375
	61,848	Time Warner, Inc.		4,647,259
	152,244	Twenty-First Century Fox, Inc., Class A		4,606,903
	62,071	Viacom, Inc., Class B		2,538,704
	43,256	Walt Disney Co. (The)		4,466,615
				19,864,856
		Publishing—8.4%
	154,452	Gannett Co., Inc.		2,602,516
	52,164	Meredith Corp.		2,676,535
	179,187	New York Times Co. (The), Class A		2,297,177
				7,576,228
		Research & Consulting Services—2.9%
	21,506	IHS, Inc., Class A(b)		2,649,109
		Total Common Stocks (Cost $87,807,439)		90,534,309

Number of Shares			Value
		Money Market Fund—0.0%
	20,520	Invesco Premier Portfolio—Institutional Class, 0.39%(c) (Cost $20,520)	$	20,520
		Total Investments (Cost $87,827,959)—100.1%		90,554,829
		Other assets less liabilities—(0.1)%		(93,855	)
		Net Assets—100.0%	$	90,460,974

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. The rate shown is the 7-day SEC standardized yield as of April 30, 2016.

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, 2016

Number of Shares			Value
		Common Stocks—100.0%
		Application Software—5.4%
	13,352	Citrix Systems, Inc.(b)	$	1,092,728
		Communications Equipment—64.7%
	27,730	ADTRAN, Inc.		535,744
	7,549	Arista Networks, Inc.(b)		502,914
	22,013	ARRIS International PLC(b)		501,236
	52,472	Brocade Communications Systems, Inc.		504,256
	29,421	CalAmp Corp.(b)		440,432
	25,110	Ciena Corp.(b)		422,601
	36,170	Cisco Systems, Inc.		994,313
	5,365	F5 Networks, Inc.(b)		561,984
	36,059	Finisar Corp.(b)		593,531
	38,831	Juniper Networks, Inc.		908,645
	21,710	Lumentum Holdings, Inc.(b)		549,263
	12,761	Motorola Solutions, Inc.		959,500
	13,292	NETGEAR, Inc.(b)		563,581
	106,120	Oclaro, Inc.(b)		535,906
	6,473	Palo Alto Networks, Inc.(b)		976,581
	13,788	Plantronics, Inc.		530,149
	50,441	Polycom, Inc.(b)		602,770
	53,717	Ruckus Wireless, Inc.(b)		738,072
	15,789	Ubiquiti Networks, Inc.(b)		562,404
	7,271	ViaSat, Inc.(b)		557,686
	79,307	Viavi Solutions, Inc.(b)		516,289
				13,057,857
		Electronic Components—5.0%
	18,044	Amphenol Corp., Class A		1,007,396
		Electronic Equipment & Instruments—3.9%
	42,884	Fitbit, Inc., Class A(b)(c)		782,633
		Electronic Manufacturing Services—2.6%
	40,643	QLogic Corp.(b)		532,017
		Systems Software—18.4%
	32,514	CA, Inc.		964,365
	11,553	Check Point Software Technologies Ltd. (Israel)(b)		957,397
	18,536	Fortinet, Inc.(b)		602,606
	19,248	Gigamon, Inc.(b)		627,292
	33,486	Infoblox, Inc.(b)		560,221
				3,711,881
		Total Common Stocks (Cost $18,933,055)		20,184,512
		Money Market Fund—0.3%
	52,197	Invesco Premier Portfolio—Institutional Class, 0.39%(d) (Cost $52,197)		52,197
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $18,985,252)—100.3%		20,236,709

Number of Shares			Value
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—3.7%
	752,950	Invesco Liquid Assets Portfolio—Institutional Class, 0.44%(d)(e) (Cost $752,950)	$	752,950
		Total Investments (Cost $19,738,202)—104.0%		20,989,659
		Other assets less liabilities—(4.0)%		(800,340	)
		Net Assets—100.0%	$	20,189,319

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, 2016.

^(d) The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of April 30, 2016.

^(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 2H.

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, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Oil & Gas Drilling—32.9%
	47,846	Diamond Offshore Drilling, Inc.	$	1,160,744
	114,239	Ensco PLC, Class A		1,366,298
	33,146	Helmerich & Payne, Inc.		2,191,613
	131,610	Nabors Industries Ltd.		1,289,778
	117,165	Noble Corp. PLC (United Kingdom)		1,315,763
	62,712	Patterson-UTI Energy, Inc.		1,238,562
	75,059	Rowan Cos. PLC, Class A		1,411,860
	508,334	Seadrill Ltd. (United Kingdom)(b)		2,429,837
	111,069	Transocean Ltd.(c)		1,230,645
	115,614	Transocean Partners LLC		1,366,557
				15,001,657
		Oil & Gas Equipment & Services—55.2%
	39,805	Baker Hughes, Inc.		1,924,970
	16,770	Core Laboratories NV		2,241,478
	18,193	Dril-Quip, Inc.(b)		1,179,270
	71,805	FMC Technologies, Inc.(b)		2,189,335
	87,500	Forum Energy Technologies, Inc.(b)		1,464,750
	73,961	Frank’s International NV		1,231,451
	53,684	Halliburton Co.		2,217,686
	302,123	McDermott International, Inc.(b)		1,371,638
	61,138	National Oilwell Varco, Inc.		2,203,414
	35,257	Oceaneering International, Inc.		1,292,169
	38,538	Oil States International, Inc.(b)		1,334,956
	71,912	RPC, Inc.		1,087,309
	24,305	Schlumberger Ltd.		1,952,664
	20,595	SEACOR Holdings, Inc.(b)		1,210,368
	273,931	Weatherford International PLC(b)		2,227,059
				25,128,517
		Oil & Gas Storage & Transportation—11.9%
	167,087	DHT Holdings, Inc.		959,079
	63,374	Navigator Holdings Ltd. (United Kingdom)(b)		965,820
	168,258	Scorpio Tankers, Inc. (Monaco)		1,053,295
	123,808	Teekay Corp. (Bermuda)		1,386,650
	164,794	Tsakos Energy Navigation Ltd. (Greece)		1,048,090
				5,412,934
		Total Common Stocks and Other Equity Interests (Cost $51,708,766)		45,543,108
		Money Market Fund—0.1%
	48,110	Invesco Premier Portfolio—Institutional Class, 0.39%(d) (Cost $48,110)		48,110
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $51,756,876)—100.1%		45,591,218

Number of Shares			Value
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—0.2%
	82,800	Invesco Liquid Assets Portfolio—Institutional Class, 0.44%(d)(e) (Cost $82,800)	$	82,800
		Total Investments (Cost $51,839,676)—100.3%		45,674,018
		Other assets less liabilities—(0.3)%		(140,210	)
		Net Assets—100.0%	$	45,533,808

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, 2016.

^(d)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of April 30, 2016.

^(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 2H.

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

United Kingdom 10.4 % 

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, 2016

Number of Shares			Value
		Common Stocks—100.0%
		Biotechnology—31.9%
	387,584	Amgen, Inc.	$	61,354,547
	173,042	Biogen, Inc.(b)		47,584,820
	442,742	Celgene Corp.(b)		45,783,950
	649,356	Gilead Sciences, Inc.		57,279,693
	2,443,483	Heron Therapeutics, Inc.(b)(c)(d)		52,388,275
	470,470	Ligand Pharmaceuticals, Inc.(b)(c)		56,865,709
	9,716,896	Novavax, Inc.(b)(c)		50,916,535
				372,173,529
		Health Care Equipment—8.2%
	1,158,059	Abbott Laboratories		45,048,495
	1,160,704	Baxter International, Inc.		51,326,331
				96,374,826
		Pharmaceuticals—59.9%
	1,671,522	Akorn, Inc.(b)		42,540,235
	191,940	Allergan PLC(b)		41,566,526
	919,011	Bristol-Myers Squibb Co.		66,334,214
	2,799,172	Depomed, Inc.(b)(c)		48,649,609
	777,290	Eli Lilly & Co.		58,708,714
	1,375,600	Impax Laboratories, Inc.(b)		45,876,260
	540,833	Johnson & Johnson		60,616,563
	1,812,528	Lannett Co., Inc.(b)(c)		34,764,287
	1,416,932	Medicines Co. (The)(b)		50,428,610
	1,129,693	Merck & Co., Inc.		61,952,364
	970,869	Mylan NV(b)		40,494,946
	354,145	Perrigo Co. PLC		34,235,197
	1,892,435	Pfizer, Inc.		61,901,549
	910,590	Prestige Brands Holdings, Inc.(b)		51,703,300
				699,772,374
		Total Common Stocks (Cost $1,251,449,875)		1,168,320,729
		Money Market Fund—0.0%
	204,498	Invesco Premier Portfolio—Institutional Class, 0.39%(e) (Cost $204,498)		204,498
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $1,251,654,373)—100.0%		1,168,525,227
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—8.7%
	102,168,125	Invesco Liquid Assets Portfolio—Institutional Class, 0.44%(e)(f) (Cost $102,168,125)		102,168,125
		Total Investments (Cost $1,353,822,498)—108.7%		1,270,693,352
		Other assets less liabilities—(8.7)%		(102,167,644	)
		Net Assets—100.0%	$	1,168,525,708

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, 2016.

^(d)  Affiliated company. 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. The rate shown is the 7-day SEC standardized yield as of April 30, 2016.

^(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 2H.

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, 2016

Number of Shares			Value
		Common Stocks—100.0%
		Apparel Retail—28.1%
	20,148	Abercrombie & Fitch Co., Class A	$	538,556
	37,877	American Eagle Outfitters, Inc.		542,020
	15,743	Cato Corp. (The), Class A		576,036
	8,353	Children’s Place, Inc. (The)		650,782
	33,471	Express, Inc.(b)		608,503
	8,946	Foot Locker, Inc.		549,642
	30,604	Francesca’s Holdings Corp.(b)		508,027
	12,479	L Brands, Inc.		976,981
	18,706	Ross Stores, Inc.		1,062,127
				6,012,674
		Automotive Retail—9.7%
	1,347	AutoZone, Inc.(b)		1,030,765
	4,005	O’Reilly Automotive, Inc.(b)		1,052,033
				2,082,798
		Distributors—2.9%
	7,013	Pool Corp.		613,006
		Drug Retail—12.7%
	10,782	CVS Health Corp.		1,083,591
	72,089	Rite Aid Corp.(b)		580,317
	13,233	Walgreens Boots Alliance, Inc.		1,049,112
				2,713,020
		Food Retail—12.8%
	26,692	Kroger Co. (The)		944,630
	35,575	Smart & Final Stores, Inc.(b)		566,354
	116,394	SUPERVALU, Inc.(b)		585,462
	13,948	Weis Markets, Inc.		634,913
				2,731,359
		Forest Products—3.3%
	33,746	Boise Cascade Co.(b)		704,279
		General Merchandise Stores—3.5%
	28,433	Ollie’s Bargain Outlet Holdings, Inc.(b)		752,053
		Home Improvement Retail—5.2%
	8,340	Home Depot, Inc. (The)		1,116,643
		Homefurnishing Retail—3.1%
	25,369	Aaron’s, Inc.		664,921
		Hypermarkets & Super Centers—3.0%
	7,430	PriceSmart, Inc.		642,992
		Internet Software & Services—1.9%
	4,926	Stamps.com, Inc.(b)		405,705
		Specialty Stores—8.4%
	18,130	Sally Beauty Holdings, Inc.(b)		569,282
	44,830	Sportsman’s Warehouse Holdings, Inc.(b)		510,165
	3,486	Ulta Salon, Cosmetics & Fragrance, Inc.(b)		726,064
				1,805,511
		Trucking—5.4%
	1,646	AMERCO		579,392
	23,213	Avis Budget Group, Inc.(b)		582,646
				1,162,038
		Total Common Stocks (Cost $21,739,726)		21,406,999

Number of Shares			Value
		Money Market Fund—0.2%
	53,293	Invesco Premier Portfolio—Institutional Class, 0.39%(c) (Cost $53,293)	$	53,293
		Total Investments (Cost $21,793,019)—100.2%		21,460,292
		Other assets less liabilities—(0.2)%		(43,834	)
		Net Assets—100.0%	$	21,416,458

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. The rate shown is the 7-day SEC standardized yield as of April 30, 2016.

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, 2016

Number of Shares			Value
		Common Stocks—100.0%
		Semiconductor Equipment—32.3%
	42,841	Advanced Energy Industries, Inc.(b)	$	1,385,906
	249,932	Amkor Technology, Inc.(b)		1,427,112
	123,475	Applied Materials, Inc.		2,527,533
	133,576	Brooks Automation, Inc.		1,263,629
	18,826	KLA-Tencor Corp.		1,316,691
	113,444	Kulicke & Soffa Industries, Inc. (Singapore)(b)		1,216,120
	17,338	Lam Research Corp.		1,324,623
	38,884	MKS Instruments, Inc.		1,394,380
	124,966	Photronics, Inc.(b)		1,322,140
	66,928	Teradyne, Inc.		1,265,609
	63,887	Ultratech, Inc.(b)		1,385,709
				15,829,452
		Semiconductors—67.7%
	29,030	Ambarella, Inc.(b)		1,193,133
	43,900	Analog Devices, Inc.		2,472,448
	17,624	Broadcom Ltd. (Singapore)		2,568,698
	50,800	Inphi Corp.(b)		1,507,236
	66,475	Integrated Device Technology, Inc.(b)		1,281,638
	78,726	Intel Corp.		2,383,823
	98,968	Intersil Corp., Class A		1,156,936
	29,162	Linear Technology Corp.		1,297,126
	34,353	M/A-Com Technology Solutions Holdings, Inc.(b)		1,404,694
	37,748	Maxim Integrated Products, Inc.		1,348,358
	80,940	MaxLinear, Inc., Class A(b)		1,355,745
	28,513	Microchip Technology, Inc.		1,385,447
	21,785	Monolithic Power Systems, Inc.		1,359,820
	74,054	NVIDIA Corp.		2,631,139
	45,448	QUALCOMM, Inc.		2,296,033
	31,596	Silicon Laboratories, Inc.(b)		1,478,693
	36,148	Skyworks Solutions, Inc.		2,415,409
	44,016	Texas Instruments, Inc.		2,510,673
	26,445	Xilinx, Inc.		1,139,250
				33,186,299
		Total Common Stocks (Cost $49,922,538)		49,015,751
		Money Market Fund—0.1%
	37,408	Invesco Premier Portfolio—Institutional Class, 0.39%(c) (Cost $37,408)		37,408
		Total Investments (Cost $49,959,946)—100.1%		49,053,159
		Other assets less liabilities—(0.1)%		(54,308	)
		Net Assets—100.0%	$	48,998,851

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. The rate shown is the 7-day SEC standardized yield as of April 30, 2016.

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, 2016

Number of Shares			Value
		Common Stocks—100.0%
		Application Software—54.7%
	40,017	Adobe Systems, Inc.(b)	$	3,770,402
	57,297	Aspen Technology, Inc.(b)		2,179,005
	33,040	Blackbaud, Inc.		2,040,881
	87,390	Cadence Design Systems, Inc.(b)		2,026,574
	48,441	Citrix Systems, Inc.(b)		3,964,412
	55,157	Ebix, Inc.		2,654,155
	22,273	Ellie Mae, Inc.(b)		1,862,023
	36,193	Intuit, Inc.		3,651,512
	33,936	Manhattan Associates, Inc.(b)		2,054,485
	11,919	MicroStrategy, Inc., Class A(b)		2,137,315
	96,490	Nuance Communications, Inc.(b)		1,657,698
	62,363	Paylocity Holding Corp.(b)		2,386,632
	76,067	Pegasystems, Inc.		2,007,408
	95,274	RealPage, Inc.(b)		2,095,075
	49,705	salesforce.com, inc.(b)		3,767,639
	11,060	Ultimate Software Group, Inc. (The)(b)		2,174,285
				40,429,501
		Data Processing & Outsourced Services—13.9%
	66,324	Black Knight Financial Services, Inc., Class A(b)		2,121,042
	48,995	CSG Systems International, Inc.		2,174,398
	17,810	DST Systems, Inc.		2,149,311
	22,708	Jack Henry & Associates, Inc.		1,840,029
	69,418	Sabre Corp.		2,009,651
				10,294,431
		Health Care Technology—7.5%
	150,858	Allscripts Healthcare Solutions, Inc.(b)		2,021,497
	34,381	Computer Programs & Systems, Inc.		1,764,777
	123,063	Quality Systems, Inc.		1,732,727
				5,519,001
		Home Entertainment Software—12.0%
	108,669	Activision Blizzard, Inc.		3,745,820
	53,770	Electronic Arts, Inc.(b)		3,325,675
	52,786	Take-Two Interactive Software, Inc.(b)		1,804,225
				8,875,720
		Internet Software & Services—2.7%
	210,261	inContact, Inc.(b)		1,957,530
		IT Consulting & Other Services—4.6%
	60,227	Amdocs Ltd.		3,405,235
		Systems Software—4.6%
	67,553	Microsoft Corp.		3,368,868
		Total Common Stocks (Cost $72,370,999)		73,850,286
		Money Market Fund—0.1%
	51,392	Invesco Premier Portfolio—Institutional Class, 0.39%(c) (Cost $51,392)		51,392
		Total Investments (Cost $72,422,391)—100.1%		73,901,678
		Other assets less liabilities—(0.1)%		(55,094	)
		Net Assets—100.0%	$	73,846,584

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. The rate shown is the 7-day SEC standardized yield as of April 30, 2016.

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, 2016

	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)	$	267,499,193		$	60,179,866		$	74,684,036		$	300,475,934		$	142,816,488
Affiliated investments, at value		35,244,922			76,494			178,894			150,639			36,615
Total investments, at value		302,744,115			60,256,360			74,862,930			300,626,573			142,853,103
Receivables:
Securities lending		212,735			—			2,179			—			—
Dividends		19			19,831			30,381			373,638			35,320
Investments sold		—			—			—			—			21,726,487
Shares sold		—			—			—			—			—
Other assets		2,943			3,333			3,333			2,943			3,333
Total Assets		302,959,812			60,279,524			74,898,823			301,003,154			164,618,243
Liabilities:
Due to custodian		8,840			—			—			—			—
Payables:
Collateral upon return of securities loaned		35,158,423			—			137,250			—			—
Shares repurchased		—			—			—			—			21,722,030
Investments purchased		—			—			—			330,831			—
Accrued advisory fees		113,685			25,153			22,105			129,332			70,813
Accrued trustees’ and officer’s fees		28,270			17,707			19,962			23,856			18,530
Accrued expenses		66,462			35,582			37,776			64,040			52,580
Total Liabilities		35,375,680			78,442			217,093			548,059			21,863,953
Net Assets	$	267,584,132		$	60,201,082		$	74,681,730		$	300,455,095		$	142,754,290
Net Assets Consist of:
Shares of beneficial interest	$	492,981,142		$	76,668,585		$	176,169,904		$	358,782,422		$	182,303,758
Undistributed net investment income (loss)		36,883			49,810			3,806,375			711,699			(17,566	)
Undistributed net realized gain (loss)		(204,760,197	)		(24,197,766	)		(111,788,385	)		(72,007,856	)		(40,708,201	)
Net unrealized appreciation (depreciation)		(20,673,696	)		7,680,453			6,493,836			12,968,830			1,176,299
Net Assets	$	267,584,132		$	60,201,082		$	74,681,730		$	300,455,095		$	142,754,290
Shares outstanding (unlimited amount authorized, $0.01 par value)		6,800,000			2,400,000			3,300,000			9,300,000			4,000,000
Net asset value	$	39.35		$	25.08		$	22.63		$	32.31		$	35.69
Market price	$	39.35		$	25.08		$	22.63		$	32.30		$	35.68
Unaffiliated investments, at cost	$	288,172,889		$	52,499,413		$	68,190,200		$	287,507,104		$	141,640,189
Affiliated investments, at cost	$	35,244,922		$	76,494		$	178,894		$	150,639		$	36,615
Total investments, at cost	$	323,417,811		$	52,575,907		$	68,369,094		$	287,657,743		$	141,676,804
(a) Includes securities on loan with an aggregate value of	$	34,065,379		$	—		$	133,000		$	—		$	—

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)
$	90,534,309		$	20,184,512		$	45,543,108		$	1,115,932,454		$	21,406,999		$	49,015,751		$	73,850,286
	20,520			805,147			130,910			154,760,898			53,293			37,408			51,392
	90,554,829			20,989,659			45,674,018			1,270,693,352			21,460,292			49,053,159			73,901,678
	—			2,254			2,111			113,014			—			—			—
	9			2,510			9,169			661,081			8,777			16,741			28,273
	1,258,892			—			—			—			—			—			—
	—			—			—			6,215,502			—			—			—
	3,333			3,333			2,943			3,346			3,333			3,333			3,333
	91,817,063			20,997,756			45,688,241			1,277,686,295			21,472,402			49,073,233			73,933,284
	—			—			—			—			—			—			—
	—			752,950			82,800			102,168,125			—			—			—
	1,257,772			—			—			—			—			—			—
	—			—			—			6,214,265			—			—			—
	36,654			4,522			11,257			489,579			5,730			17,805			26,417
	20,304			16,535			25,291			42,500			15,744			16,481			17,224
	41,359			34,430			35,085			246,118			34,470			40,096			43,059
	1,356,089			808,437			154,433			109,160,587			55,944			74,382			86,700
$	90,460,974		$	20,189,319		$	45,533,808		$	1,168,525,708		$	21,416,458		$	48,998,851		$	73,846,584
$	163,177,705		$	54,804,110		$	268,982,665		$	1,357,051,704		$	43,427,414		$	94,149,786		$	99,891,228
	(19,384	)		90,135			84,581			1,763,750			19,111			138,069			(58,979	)
	(75,424,217	)		(35,956,383	)		(217,367,780	)		(107,160,600	)		(21,697,340	)		(44,382,217	)		(27,464,952	)
	2,726,870			1,251,457			(6,165,658	)		(83,129,146	)		(332,727	)		(906,787	)		1,479,287
$	90,460,974		$	20,189,319		$	45,533,808		$	1,168,525,708		$	21,416,458		$	48,998,851		$	73,846,584
	3,600,000			600,000			3,450,000			18,800,000			600,000			2,000,000			1,750,000
$	25.13		$	33.65		$	13.20		$	62.16		$	35.69		$	24.50		$	42.20
$	25.12		$	33.65		$	13.19		$	62.14		$	35.69		$	24.48		$	42.21
$	87,807,439		$	18,933,055		$	51,708,766		$	1,173,991,392		$	21,739,726		$	49,922,538		$	72,370,999
$	20,520		$	805,147		$	130,910		$	179,831,106		$	53,293		$	37,408		$	51,392
$	87,827,959		$	19,738,202		$	51,839,676		$	1,353,822,498		$	21,793,019		$	49,959,946		$	72,422,391
$	—		$	742,775		$	79,776		$	93,686,697		$	—		$	—		$	—

51

Statements of Operations

For the year ended April 30, 2016

	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	$	1,680,604		$	468,152		$	1,724,496		$	4,536,292		$	1,734,386
Affiliated dividend income		799			131			167			245			185
Securities lending income		5,062,630			—			761,588			—			—
Foreign withholding tax		—			—			—			—			—
Total Income		6,744,033			468,283			2,486,251			4,536,537			1,734,571
Expenses:
Advisory fees		2,129,846			289,647			454,277			1,265,579			962,761
Sub-licensing fees		127,791			17,379			27,257			75,936			57,766
Accounting & administration fees		83,391			34,792			35,053			45,479			36,615
Custodian & transfer agent fees		32,886			3,904			5,081			8,987			6,086
Professional fees		31,532			25,155			33,313			27,444			31,734
Trustees’ and officer’s fees		16,204			8,715			9,423			12,037			11,315
Recapture (Note 3)		—			—			—			—			39,775
Other expenses		52,066			14,050			40,973			38,368			31,116
Total Expenses		2,473,716			393,642			605,377			1,473,830			1,177,168
Less: Waivers		(598	)		(28,809	)		(15,721	)		(269	)		(176	)
Net Expenses		2,473,118			364,833			589,656			1,473,561			1,176,992
Net Investment Income (Loss)		4,270,915			103,450			1,896,595			3,062,976			557,579
Realized and Unrealized Gain (Loss):
Net realized gain (loss) from:
Investment securities		(79,726,495	)		(3,075,613	)		(41,723,997	)		(21,963,276	)		(20,719,890	)
In-kind redemptions		41,709,277			3,629,890			2,498,156			35,578,036			17,108,993
Net realized gain (loss)		(38,017,218	)		554,277			(39,225,841	)		13,614,760			(3,610,897	)
Net change in unrealized appreciation (depreciation) on investment securities		(78,486,936	)		3,421,640			776,822			(1,735,070	)		(5,120,787	)
Net realized and unrealized gain (loss)		(116,504,154	)		3,975,917			(38,449,019	)		11,879,690			(8,731,684	)
Net increase (decrease) in net assets resulting from operations	$	(112,233,239	)	$	4,079,367		$	(36,552,424	)	$	14,942,666		$	(8,174,105	)

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)
$	1,071,926		$	173,821		$	998,009		$	18,374,249		$	326,315		$	664,937		$	351,861
	173			123			106			8,261			105			341			192
	—			84,727			61,385			736,598			—			—			—
	(1,215	)		—			(9,120	)		—			—			—			(17,921	)
	1,070,884			258,671			1,050,380			19,119,108			326,420			665,278			334,132
	614,735			123,185			251,750			8,364,825			125,520			327,986			381,668
	36,885			7,391			15,104			501,892			7,531			19,680			22,900
	34,789			34,785			34,858			330,274			34,846			34,823			34,825
	5,777			3,628			4,023			50,595			3,508			5,896			4,092
	26,611			25,464			28,920			49,923			25,181			26,226			25,839
	10,077			8,114			8,621			40,172			8,154			8,966			8,983
	—			—			—			—			—			—			—
	26,617			14,820			19,401			151,082			15,026			22,350			21,942
	755,491			217,387			362,677			9,488,763			219,766			445,927			500,249
	(185	)		(62,297	)		(45,585	)		(9,427	)		(61,714	)		(32,941	)		(19,491	)
	755,306			155,090			317,092			9,479,336			158,052			412,986			480,758
	315,578			103,581			733,288			9,639,772			168,368			252,292			(146,626	)
	(18,460,559	)		(2,171,347	)		(21,669,418	)		(102,911,598	)		(3,596,491	)		(9,747,000	)		(5,316,953	)
	12,302,546			3,278,763			504,353			238,620,291			3,655,611			4,865,093			4,800,544
	(6,158,013	)		1,107,416			(21,165,065	)		135,708,693			59,120			(4,881,907	)		(516,409	)
	(6,304,545	)		(3,430,513	)		(975,438	)		(370,625,568	)		(1,126,743	)		(3,462,052	)		(4,707,107	)
	(12,462,558	)		(2,323,097	)		(22,140,503	)		(234,916,875	)		(1,067,623	)		(8,343,959	)		(5,223,516	)
$	(12,146,980	)	$	(2,219,516	)	$	(21,407,215	)	$	(225,277,103	)	$	(899,255	)	$	(8,091,667	)	$	(5,370,142	)

53

Statements of Changes in Net Assets

For the years ended April 30, 2016 and 2015

	PowerShares Dynamic Biotechnology & Genome Portfolio (PBE)						PowerShares Dynamic Building & Construction Portfolio (PKB)
	2016			2015			2016			2015
Operations:
Net investment income	$	4,270,915		$	3,024,062		$	103,450		$	125,957
Net realized gain (loss)		(38,017,218	)		75,495,125			554,277			615,425
Net change in unrealized appreciation (depreciation)		(78,486,936	)		39,345,361			3,421,640			(2,912,498	)
Net increase (decrease) in net assets resulting from operations		(112,233,239	)		117,864,548			4,079,367			(2,171,116	)
Distributions to Shareholders from:
Net investment income		(4,955,367	)		(2,402,943	)		(67,537	)		(69,918	)
Shareholder Transactions:
Proceeds from shares sold		93,026,648			250,854,414			34,203,109			59,533,158
Value of shares repurchased		(219,516,036	)		(216,373,603	)		(33,191,270	)		(125,802,719	)
Net increase (decrease) in net assets resulting from shares transactions		(126,489,388	)		34,480,811			1,011,839			(66,269,561	)
Increase (Decrease) in Net Assets		(243,677,994	)		149,942,416			5,023,669			(68,510,595	)
Net Assets:
Beginning of year		511,262,126			361,319,710			55,177,413			123,688,008
End of year	$	267,584,132		$	511,262,126		$	60,201,082		$	55,177,413
Undistributed net investment income at end of year	$	36,883		$	721,335		$	49,810		$	13,897
Changes in Shares Outstanding:
Shares sold		1,750,000			4,800,000			1,400,000			2,700,000
Shares repurchased		(4,600,000	)		(4,250,000	)		(1,400,000	)		(5,900,000	)
Shares outstanding, beginning of year		9,650,000			9,100,000			2,400,000			5,600,000
Shares outstanding, end of year		6,800,000			9,650,000			2,400,000			2,400,000

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)
2016			2015			2016			2015			2016			2015			2016			2015
$	1,896,595		$	1,436,050		$	3,062,976		$	3,196,087		$	557,579		$	1,420,491		$	315,578		$	1,313,491
	(39,225,841	)		(12,857,038	)		13,614,760			46,360,360			(3,610,897	)		9,617,141			(6,158,013	)		4,042,249
	776,822			(9,926,226	)		(1,735,070	)		(2,123,925	)		(5,120,787	)		5,914,162			(6,304,545	)		14,815,252
	(36,552,424	)		(21,347,214	)		14,942,666			47,432,522			(8,174,105	)		16,951,794			(12,146,980	)		20,170,992
	(2,429,800	)		(1,923,020	)		(2,995,165	)		(4,913,796	)		(444,265	)		(1,429,697	)		(1,074,222	)		(1,051,471	)
	49,529,499			130,833,909			342,040,166			308,461,538			158,374,155			181,183,360			125,469,044			165,292,831
	(53,458,266	)		(120,243,852	)		(319,253,170	)		(519,631,016	)		(199,941,946	)		(181,694,812	)		(167,455,100	)		(210,173,828	)
	(3,928,767	)		10,590,057			22,786,996			(211,169,478	)		(41,567,791	)		(511,452	)		(41,986,056	)		(44,880,997	)
	(42,910,991	)		(12,680,177	)		34,734,497			(168,650,752	)		(50,186,161	)		15,010,645			(55,207,258	)		(25,761,476	)
	117,592,721			130,272,898			265,720,598			434,371,350			192,940,451			177,929,806			145,668,232			171,429,708
$	74,681,730		$	117,592,721		$	300,455,095		$	265,720,598		$	142,754,290		$	192,940,451		$	90,460,974		$	145,668,232
$	3,806,375		$	603,317		$	711,699		$	643,888		$	(17,566	)	$	(14,515	)	$	(19,384	)	$	365,169
	1,800,000			3,850,000			10,700,000			10,300,000			4,250,000			4,950,000			4,800,000			6,550,000
	(2,200,000	)		(3,600,000	)		(9,850,000	)		(17,950,000	)		(5,550,000	)		(5,150,000	)		(6,650,000	)		(8,300,000	)
	3,700,000			3,450,000			8,450,000			16,100,000			5,300,000			5,500,000			5,450,000			7,200,000
	3,300,000			3,700,000			9,300,000			8,450,000			4,000,000			5,300,000			3,600,000			5,450,000

55

Statements of Changes in Net Assets (continued)

For the years ended April 30, 2016 and 2015

	PowerShares Dynamic Networking Portfolio (PXQ)						PowerShares Dynamic Oil & Gas Services Portfolio (PXJ)
	2016			2015			2016			2015
Operations:
Net investment income (loss)	$	103,581		$	(5,788	)	$	733,288		$	893,246
Net realized gain (loss)		1,107,416			3,439,892			(21,165,065	)		(12,704,562	)
Net change in unrealized appreciation (depreciation)		(3,430,513	)		915,524			(975,438	)		(25,846,369	)
Net increase (decrease) in net assets resulting from operations		(2,219,516	)		4,349,628			(21,407,215	)		(37,657,685	)
Distributions to Shareholders from:
Net investment income		—			—			(831,786	)		(1,024,494	)
Net realized gains		—			—			—			—
Return of capital		—			—			—			—
Total distributions to shareholders		—			—			(831,786	)		(1,024,494	)
Shareholder Transactions:
Proceeds from shares sold		9,058,713			17,339,824			15,134,853			45,413,320
Value of shares repurchased		(14,134,635	)		(23,847,484	)		(20,147,734	)		(69,794,901	)
Net increase (decrease) in net assets resulting from shares transactions		(5,075,922	)		(6,507,660	)		(5,012,881	)		(24,381,581	)
Increase (Decrease) in Net Assets		(7,295,438	)		(2,158,032	)		(27,251,882	)		(63,063,760	)
Net Assets:
Beginning of year		27,484,757			29,642,789			72,785,690			135,849,450
End of year	$	20,189,319		$	27,484,757		$	45,533,808		$	72,785,690
Undistributed net investment income (loss) at end of year	$	90,135		$	(13,446	)	$	84,581		$	152,146
Changes in Shares Outstanding:
Shares sold		250,000			500,000			1,050,000			2,000,000
Shares repurchased		(400,000	)		(700,000	)		(1,450,000	)		(3,000,000	)
Shares outstanding, beginning of year		750,000			950,000			3,850,000			4,850,000
Shares outstanding, end of year		600,000			750,000			3,450,000			3,850,000

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)
2016			2015			2016			2015			2016			2015			2016			2015
$	9,639,772		$	6,922,569		$	168,368		$	144,257		$	252,292		$	374,605		$	(146,626	)	$	149,496
	135,708,693			289,031,374			59,120			803,164			(4,881,907	)		5,444,352			(516,409	)		4,055,280
	(370,625,568	)		92,127,128			(1,126,743	)		827,688			(3,462,052	)		165,344			(4,707,107	)		7,072,718
	(225,277,103	)		388,081,071			(899,255	)		1,775,109			(8,091,667	)		5,984,301			(5,370,142	)		11,277,494
	(9,438,012	)		(6,839,864	)		(182,321	)		(205,959	)		(100,980	)		(415,087	)		(83,133	)		(49,038	)
	(78,190,579	)		(36,562,562	)		—			—			—			—			—			—
	—			—			—			—			—			(146,696	)		—			—
	(87,628,591	)		(43,402,426	)		(182,321	)		(205,959	)		(100,980	)		(561,783	)		(83,133	)		(49,038	)
	402,286,845			896,877,939			18,333,024			38,457,393			43,249,104			89,671,046			98,889,794			47,870,360
	(847,789,130	)		(418,629,721	)		(34,245,374	)		(26,479,719	)		(64,968,217	)		(36,803,945	)		(76,919,326	)		(56,104,715	)
	(445,502,285	)		478,248,218			(15,912,350	)		11,977,674			(21,719,113	)		52,867,101			21,970,468			(8,234,355	)
	(758,407,979	)		822,926,863			(16,993,926	)		13,546,824			(29,911,760	)		58,289,619			16,517,193			2,994,101
	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
$	1,168,525,708		$	1,926,933,687		$	21,416,458		$	38,410,384		$	48,998,851		$	78,910,611		$	73,846,584		$	57,329,391
$	1,763,750		$	1,561,990		$	19,111		$	33,064		$	138,069		$	(13,243	)	$	(58,979	)	$	69,256
	5,400,000			12,950,000			500,000			1,000,000			1,600,000			3,450,000			2,300,000			1,200,000
	(12,500,000	)		(6,200,000	)		(900,000	)		(750,000	)		(2,600,000	)		(1,450,000	)		(1,900,000	)		(1,450,000	)
	25,900,000			19,150,000			1,000,000			750,000			3,000,000			1,000,000			1,350,000			1,600,000
	18,800,000			25,900,000			600,000			1,000,000			2,000,000			3,000,000			1,750,000			1,350,000

57

Financial Highlights

PowerShares Dynamic Biotechnology & Genome Portfolio (PBE)

	Year Ended April 30,
	2016			2015			2014			2013			2012
Per Share Operating Performance:
Net asset value at beginning of year	$	52.98		$	39.71		$	28.26		$	22.26		$	23.14
Net investment income (loss)(a)		0.50			0.34			0.03			(0.05	)		(0.04	)
Net realized and unrealized gain (loss) on investments		(13.56	)		13.21			11.42			6.05			(0.84	)
Total from investment operations		(13.06	)		13.55			11.45			6.00			(0.88	)
Distributions to shareholders from:
Net investment income		(0.57	)		(0.28	)		—			—			—
Net asset value at end of year	$	39.35		$	52.98		$	39.71		$	28.26		$	22.26
Market price at end of year(b)	$	39.35		$	52.95		$	39.68		$	28.27		$	22.21
Net Asset Value Total Return:(c)		(24.92	)%		34.25	%		40.52	%		26.96	%		(3.80	)%
Market Price Total Return(c)		(24.88	)%		34.28	%		40.36	%		27.29	%		(4.18	)%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	267,584		$	511,262		$	361,320		$	155,453		$	136,903
Ratio to average net assets of:
Expenses, after Waivers		0.58	%		0.57	%		0.59	%		0.63	%		0.63	%
Expenses, prior to Waivers		0.58	%		0.57	%		0.59	%		0.63	%		0.64	%
Net investment income (loss), after Waivers		1.00	%		0.69	%		0.09	%		(0.20	)%		(0.21	)%
Portfolio turnover rate(d)		74	%		95	%		64	%		53	%		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 for periods less than one year, if applicable, 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,
	2016			2015			2014			2013			2012
Per Share Operating Performance:
Net asset value at beginning of year	$	22.99		$	22.09		$	19.65		$	14.23		$	14.11
Net investment income(a)		0.04			0.03			0.00	(b)		0.07			0.02
Net realized and unrealized gain on investments		2.08			0.89			2.44			5.44			0.12
Total from investment operations		2.12			0.92			2.44			5.51			0.14
Distributions to shareholders from:
Net investment income		(0.03	)		(0.02	)		—			(0.09	)		(0.02	)
Net asset value at end of year	$	25.08		$	22.99		$	22.09		$	19.65		$	14.23
Market price at end of year(c)	$	25.08		$	22.98		$	22.10		$	19.63		$	14.20
Net Asset Value Total Return:(d)		9.21	%		4.17	%		12.42	%		38.85	%		0.99	%
Market Price Total Return(d)		9.26	%		4.08	%		12.58	%		39.01	%		0.92	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	60,201		$	55,177		$	123,688		$	104,121		$	30,600
Ratio to average net assets of:
Expenses, after Waivers		0.63	%		0.63	%		0.63	%		0.63	%		0.63	%
Expenses, prior to Waivers		0.68	%		0.65	%		0.63	%		0.69	%		1.01	%
Net investment income, after Waivers		0.18	%		0.15	%		0.01	%		0.44	%		0.12	%
Portfolio turnover rate(e)		90	%		96	%		117	%		95	%		72	%

^(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 for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions.

PowerShares Dynamic Energy Exploration & Production Portfolio (PXE)

	Year Ended April 30,
	2016			2015			2014			2013			2012
Per Share Operating Performance:
Net asset value at beginning of year	$	31.78		$	37.76		$	30.27		$	24.58		$	27.67
Net investment income(a)		0.51			0.39			0.48			0.53			0.19
Net realized and unrealized gain (loss) on investments		(9.04	)		(5.84	)		7.55			5.81			(2.94	)
Total from investment operations		(8.53	)		(5.45	)		8.03			6.34			(2.75	)
Distributions to shareholders from:
Net investment income		(0.62	)		(0.53	)		(0.54	)		(0.65	)		(0.34	)
Net asset value at end of year	$	22.63		$	31.78		$	37.76		$	30.27		$	24.58
Market price at end of year(b)	$	22.63		$	31.77		$	37.76		$	30.23		$	24.57
Net Asset Value Total Return:(c)		(26.93	)%		(14.51	)%		26.93	%		26.14	%		(9.86	)%
Market Price Total Return(c)		(26.91	)%		(14.54	)%		27.10	%		26.03	%		(9.83	)%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	74,682		$	117,593		$	130,273		$	104,427		$	67,592
Ratio to average net assets of:
Expenses, after Waivers		0.65	%		0.64	%		0.64	%		0.65	%		0.65	%
Expenses, prior to Waivers		0.67	%		0.64	%		0.64	%		0.69	%		0.73	%
Net investment income, after Waivers		2.09	%		1.20	%		1.46	%		1.97	%		0.81	%
Portfolio turnover rate(d)		134	%		140	%		96	%		80	%		94	%

^(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 for periods less than one year, if applicable, 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,
	2016			2015			2014			2013			2012
Per Share Operating Performance:
Net asset value at beginning of year	$	31.45		$	26.98		$	23.62		$	19.77		$	19.76
Net investment income(a)		0.39			0.31			0.38			0.26			0.22
Net realized and unrealized gain (loss) on investments		0.88			4.58			3.19			3.92			(0.03	)
Total from investment operations		1.27			4.89			3.57			4.18			0.19
Distributions to shareholders from:
Net investment income		(0.41	)		(0.42	)		(0.21	)		(0.33	)		(0.18	)
Net asset value at end of year	$	32.31		$	31.45		$	26.98		$	23.62		$	19.77
Market price at end of year(b)	$	32.30		$	31.43		$	26.99		$	23.61		$	19.77
Net Asset Value Total Return:(c)		4.06	%		18.25	%		15.16	%		21.45	%		1.02	%
Market Price Total Return(c)		4.10	%		18.13	%		15.25	%		21.40	%		0.77	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	300,455		$	265,721		$	434,371		$	236,226		$	169,039
Ratio to average net assets of:
Expenses, after Waivers		0.58	%		0.58	%		0.61	%		0.63	%		0.63	%
Expenses, prior to Waivers		0.58	%		0.58	%		0.61	%		0.63	%		0.64	%
Net investment income, after Waivers		1.21	%		1.05	%		1.47	%		1.28	%		1.13	%
Portfolio turnover rate(d)		109	%		124	%		145	%		92	%		134	%

^(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 for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions.

PowerShares Dynamic Leisure and Entertainment Portfolio (PEJ)

	Year Ended April 30,
	2016			2015			2014			2013			2012
Per Share Operating Performance:
Net asset value at beginning of year	$	36.40		$	32.35		$	27.23		$	22.18		$	19.34
Net investment income(a)		0.11			0.31			0.15			0.12			0.15
Net realized and unrealized gain (loss) on investments		(0.74	)		4.04			5.10			5.09			2.82
Total from investment operations		(0.63	)		4.35			5.25			5.21			2.97
Distributions to shareholders from:
Net investment income		(0.08	)		(0.30	)		(0.13	)		(0.16	)		(0.13	)
Net asset value at end of year	$	35.69		$	36.40		$	32.35		$	27.23		$	22.18
Market price at end of year(b)	$	35.68		$	36.39		$	32.34		$	27.21		$	22.20
Net Asset Value Total Return:(c)		(1.73	)%		13.47	%		19.29	%		23.67	%		15.49	%
Market Price Total Return(c)		(1.73	)%		13.47	%		19.34	%		23.47	%		15.59	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	142,754		$	192,940		$	177,930		$	85,765		$	57,679
Ratio to average net assets of:
Expenses, after Waivers		0.61	%		0.63	%		0.63	%		0.63	%		0.63	%
Expenses, prior to Waivers		0.61	%		0.63	%		0.63	%		0.69	%		0.80	%
Net investment income, after Waivers		0.29	%		0.88	%		0.48	%		0.52	%		0.80	%
Portfolio turnover rate(d)		136	%		187	%		171	%		93	%		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 for periods less than one year, if applicable, 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,
	2016			2015			2014			2013			2012
Per Share Operating Performance:
Net asset value at beginning of year	$	26.73		$	23.81		$	20.11		$	14.84		$	15.61
Net investment income(a)		0.07			0.21			0.09			0.12			0.08
Net realized and unrealized gain (loss) on investments		(1.45	)		2.89			3.70			5.28			(0.76	)
Total from investment operations		(1.38	)		3.10			3.79			5.40			(0.68	)
Distributions to shareholders from:
Net investment income		(0.22	)		(0.18	)		(0.09	)		(0.13	)		(0.09	)
Net asset value at end of year	$	25.13		$	26.73		$	23.81		$	20.11		$	14.84
Market price at end of year(b)	$	25.12		$	26.72		$	23.79		$	20.10		$	14.84
Net Asset Value Total Return:(c)		(5.18	)%		13.04	%		18.87	%		36.62	%		(4.33	)%
Market Price Total Return(c)		(5.18	)%		13.09	%		18.83	%		36.55	%		(4.33	)%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	90,461		$	145,668		$	171,430		$	150,788		$	137,975
Ratio to average net assets of:
Expenses, after Waivers		0.61	%		0.59	%		0.62	%		0.63	%		0.63	%
Expenses, prior to Waivers		0.61	%		0.59	%		0.62	%		0.63	%		0.65	%
Net investment income, after Waivers		0.26	%		0.84	%		0.38	%		0.71	%		0.60	%
Portfolio turnover rate(d)		124	%		131	%		120	%		70	%		89	%

^(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 for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions.

PowerShares Dynamic Networking Portfolio (PXQ)

	Year Ended April 30,
	2016			2015			2014			2013			2012
Per Share Operating Performance:
Net asset value at beginning of year	$	36.65		$	31.20		$	25.00		$	27.71		$	29.20
Net investment income (loss)(a)		0.15			(0.01	)		(0.04	)		0.20	(b)		(0.06	)
Net realized and unrealized gain (loss) on investments		(3.15	)		5.46			6.44			(2.85	)		(1.43	)
Total from investment operations		(3.00	)		5.45			6.40			(2.65	)		(1.49	)
Distributions to shareholders from:
Net investment income		—			—			(0.20	)		(0.06	)		—
Net asset value at end of year	$	33.65		$	36.65		$	31.20		$	25.00		$	27.71
Market price at end of year(c)	$	33.65		$	36.64		$	31.19		$	24.97		$	27.68
Net Asset Value Total Return:(d)		(8.19	)%		17.47	%		25.69	%		(9.57	)%		(5.10	)%
Market Price Total Return(d)		(8.16	)%		17.48	%		25.80	%		(9.58	)%		(5.20	)%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	20,189		$	27,485		$	29,643		$	30,000		$	81,739
Ratio to average net assets of:
Expenses, after Waivers		0.63	%		0.63	%		0.63	%		0.64	%		0.63	%
Expenses, prior to Waivers		0.88	%		0.85	%		0.82	%		0.75	%		0.67	%
Net investment income (loss), after Waivers		0.42	%		(0.02	)%		(0.12	)%		0.81	%(b)		(0.22	)%
Portfolio turnover rate(e)		87	%		74	%		69	%		68	%		84	%

^(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 for periods less than one year, if applicable, 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,
	2016			2015			2014			2013			2012
Per Share Operating Performance:
Net asset value at beginning of year	$	18.91		$	28.01		$	22.49		$	20.48		$	26.38
Net investment income (loss)(a)		0.20			0.22			0.08			0.04			(0.01	)
Net realized and unrealized gain (loss) on investments		(5.69	)		(9.07	)		5.53	(b)		2.00			(5.89	)
Total from investment operations		(5.49	)		(8.85	)		5.61			2.04			(5.90	)
Distributions to shareholders from:
Net investment income		(0.22	)		(0.25	)		(0.09	)		(0.03	)		(0.00	)(c)
Net asset value at end of year	$	13.20		$	18.91		$	28.01		$	22.49		$	20.48
Market price at end of year(d)	$	13.19		$	18.92		$	28.00		$	22.49		$	20.48
Net Asset Value Total Return:(e)		(29.06	)%		(31.67	)%		24.98	%(b)		9.95	%		(22.36	)%
Market Price Total Return(e)		(29.15	)%		(31.61	)%		24.94	%		9.95	%		(22.36	)%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	45,534		$	72,786		$	135,849		$	116,973		$	147,485
Ratio to average net assets of:
Expenses, after Waivers		0.63	%		0.63	%		0.61	%		0.62	%		0.63	%
Expenses, prior to Waivers		0.72	%		0.64	%		0.61	%		0.62	%		0.63	%
Net investment income (loss), after Waivers		1.46	%		0.96	%		0.31	%		0.18	%		(0.03	)%
Portfolio turnover rate(f)		89	%		79	%		259	%(b)		68	%		70	%

^(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 for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions.

PowerShares Dynamic Pharmaceuticals Portfolio (PJP)

	Year Ended April 30,
	2016			2015			2014			2013			2012
Per Share Operating Performance:
Net asset value at beginning of year	$	74.40		$	57.65		$	40.72		$	32.00		$	26.15
Net investment income(a)		0.41			0.32			0.26			0.54	(b)		0.22
Net realized and unrealized gain (loss) on investments		(8.81	)		18.42			16.90			8.72			5.83
Total from investment operations		(8.40	)		18.74			17.16			9.26			6.05
Distributions to shareholders from:
Net investment income		(0.39	)		(0.34	)		(0.23	)		(0.54	)		(0.20	)
Net realized gains		(3.45	)		(1.65	)		—			—			—
Total distributions		(3.84	)		(1.99	)		(0.23	)		(0.54	)		(0.20	)
Net asset value at end of year	$	62.16		$	74.40		$	57.65		$	40.72		$	32.00
Market price at end of year(c)	$	62.14		$	74.35		$	57.60		$	40.72		$	31.99
Net Asset Value Total Return:(d)		(11.86	)%		32.95	%		42.27	%		29.25	%		23.29	%
Market Price Total Return(d)		(11.83	)%		32.97	%		42.15	%		29.29	%		23.16	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	1,168,526		$	1,926,934		$	1,104,007		$	468,305		$	270,385
Ratio to average net assets of:
Expenses, after Waivers		0.57	%		0.56	%		0.58	%		0.63	%		0.63	%
Expenses, prior to Waivers		0.57	%		0.56	%		0.58	%		0.63	%		0.64	%
Net investment income, after Waivers		0.58	%		0.48	%		0.52	%		1.52	%(b)		0.77	%
Portfolio turnover rate(e)		26	%		47	%		39	%		24	%		23	%

^(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 for periods less than one year, if applicable, 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 Dynamic Retail Portfolio (PMR)

	Year Ended April 30,
	2016			2015			2014			2013			2012
Per Share Operating Performance:
Net asset value at beginning of year	$	38.41		$	33.15		$	29.12		$	25.98		$	21.88
Net investment income(a)		0.25			0.22			0.32			0.66			0.16
Net realized and unrealized gain (loss) on investments		(2.70	)		5.38			3.99			3.11			4.17
Total from investment operations		(2.45	)		5.60			4.31			3.77			4.33
Distributions to shareholders from:
Net investment income		(0.27	)		(0.34	)		(0.28	)		(0.63	)		(0.23	)
Net asset value at end of year	$	35.69		$	38.41		$	33.15		$	29.12		$	25.98
Market price at end of year(b)	$	35.69		$	38.42		$	33.14		$	29.11		$	25.98
Net Asset Value Total Return:(c)		(6.40	)%		16.97	%		14.81	%		14.87	%		20.06	%
Market Price Total Return(c)		(6.42	)%		17.04	%		14.81	%		14.83	%		19.95	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	21,416		$	38,410		$	24,864		$	24,750		$	76,643
Ratio to average net assets of:
Expenses, after Waivers		0.63	%		0.63	%		0.63	%		0.63	%		0.63	%
Expenses, prior to Waivers		0.88	%		0.91	%		0.79	%		0.74	%		0.87	%
Net investment income, after Waivers		0.67	%		0.61	%		0.96	%		2.59	%		0.75	%
Portfolio turnover rate(d)		129	%		111	%		184	%		83	%		111	%

^(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 for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions.

PowerShares Dynamic Semiconductors Portfolio (PSI)

	Year Ended April 30,
	2016			2015			2014			2013			2012
Per Share Operating Performance:
Net asset value at beginning of year	$	26.30		$	20.62		$	15.22		$	15.75		$	18.19
Net investment income(a)		0.10			0.25	(b)		0.10			0.11			0.06
Net realized and unrealized gain (loss) on investments		(1.86	)		5.88			5.41			(0.52	)		(2.47	)
Total from investment operations		(1.76	)		6.13			5.51			(0.41	)		(2.41	)
Distribution to shareholder from:
Net investment income		(0.04	)		(0.33	)		(0.11	)		(0.12	)		(0.03	)
Return of capital		—			(0.12	)		—			—			—
Total distributions		(0.04	)		(0.45	)		(0.11	)		(0.12	)		(0.03	)
Net asset value at end of year	$	24.50		$	26.30		$	20.62		$	15.22		$	15.75
Market price at end of year(c)	$	24.48		$	26.31		$	20.62		$	15.19		$	15.71
Net Asset Value Total Return:(d)		(6.69	)%		29.90	%		36.38	%		(2.56	)%		(13.20	)%
Market Price Total Return(d)		(6.80	)%		29.95	%		36.66	%		(2.50	)%		(13.47	)%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	48,999		$	78,911		$	20,621		$	16,744		$	21,261
Ratio to average net assets of:
Expenses, after Waivers		0.63	%		0.63	%		0.63	%		0.63	%		0.63	%
Expenses, prior to Waivers		0.68	%		0.78	%		1.05	%		1.05	%		1.02	%
Net investment income, after Waivers		0.38	%		1.03	%(b)		0.55	%		0.77	%		0.42	%
Portfolio turnover rate(e)		104	%		103	%		126	%		91	%		57	%

^(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 for periods less than one year, if applicable, 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 Dynamic Software Portfolio (PSJ)

	Year Ended April 30,
	2016			2015			2014			2013			2012
Per Share Operating Performance:
Net asset value at beginning of year	$	42.47		$	33.96		$	30.16		$	26.87		$	27.47
Net investment income (loss)(a)		(0.08	)		0.11			(0.00	)(b)		(0.01	)		(0.07	)
Net realized and unrealized gain (loss) on investments		(0.13	)		8.44			3.80			3.30			(0.53	)
Total from investment operations		(0.21	)		8.55			3.80			3.29			(0.60	)
Distributions to shareholders from:
Net investment income		(0.06	)		(0.04	)		—			—			—
Net asset value at end of year	$	42.20		$	42.47		$	33.96		$	30.16		$	26.87
Market price at end of year(c)	$	42.21		$	42.48		$	33.93		$	30.12		$	26.87
Net Asset Value Total Return:(d)		(0.50	)%		25.18	%		12.60	%		12.24	%		(2.19	)%
Market Price Total Return(d)		(0.50	)%		25.32	%		12.65	%		12.09	%		(2.22	)%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	73,847		$	57,329		$	54,335		$	48,257		$	49,710
Ratio to average net assets of:
Expenses, after Waivers		0.63	%		0.63	%		0.63	%		0.63	%		0.63	%
Expenses, prior to Waivers		0.66	%		0.71	%		0.69	%		0.74	%		0.78	%
Net investment income (loss), after Waivers		(0.19	)%		0.29	%		(0.01	)%		(0.03	)%		(0.29	)%
Portfolio turnover rate(e)		154	%		132	%		150	%		95	%		100	%

^(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 for periods less than one year, if applicable, 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, 2016

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, 2016, 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

65

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.

66

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 will 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.

The Funds may periodically participate in litigation related to each Fund’s investments. As such, the Funds may receive proceeds from litigation settlements. Any proceeds received are included in the Statements of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.

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

Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statements of Operations and the Statements of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of each Fund’s net asset value and, accordingly, they reduce each Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statements of Operations and the Statements of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between each Fund and the Adviser.

E. Country Determination

For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the Adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.

F. 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.

G. 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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H. Securities Lending

During the fiscal year ended April 30, 2016, Dynamic Biotechnology & Genome Portfolio, Dynamic Energy Exploration & Production Portfolio, Dynamic Networking Portfolio, Dynamic Oil & Gas Services 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 securities) 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 Schedules of Investments. Each Fund bears the risk of loss with respect to the investment of collateral. 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. When loaning securities, each Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to each 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. The securities loaned are subject to termination at the option of the borrower or each Fund. Upon termination, the borrower will return to each Fund the securities loaned and each Fund will return the collateral. 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. Each Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to each Fund. Some of these losses may be indemnified by the lending agent. Each 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.

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, 2017. 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, 2017. During its term, the Expense Agreement cannot be terminated or amended to increase the Expense Cap without approval of the Board of Trustees. The Adviser did not waive fees and/or pay Fund expenses during the period under this Expense Cap for Dynamic Biotechnology & Genome Portfolio, Dynamic Food & Beverage Portfolio, Dynamic Leisure and Entertainment Portfolio, Dynamic Media Portfolio and Dynamic Pharmaceuticals Portfolio.

Further, through August 31, 2018, 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, 2016, the Adviser waived fees and/or paid Fund expenses for each Fund in the following amounts:

Dynamic Biotechnology & Genome Portfolio	$	598
Dynamic Building & Construction Portfolio		28,809
Dynamic Energy Exploration & Production Portfolio		15,721
Dynamic Food & Beverage Portfolio		269
Dynamic Leisure and Entertainment Portfolio		176
Dynamic Media Portfolio		185
Dynamic Networking Portfolio		62,297
Dynamic Oil & Gas Services Portfolio		45,585
Dynamic Pharmaceuticals Portfolio		9,427
Dynamic Retail Portfolio		61,714
Dynamic Semiconductors Portfolio		32,941
Dynamic Software Portfolio		19,491

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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, 2016 are as follows:

	Total Potential Recapture Amounts		Potential Recapture Amounts Expiring
			04/30/17		04/30/18		04/30/19
Dynamic Building & Construction Portfolio	$	44,936	$	—	$	16,252	$	28,684
Dynamic Energy Exploration & Production Portfolio		15,566		—		—		15,566
Dynamic Networking Portfolio		182,610		58,890		61,547		62,173
Dynamic Oil & Gas Services Portfolio		56,554		—		11,082		45,472
Dynamic Retail Portfolio		179,857		52,831		65,416		61,610
Dynamic Semiconductors Portfolio		156,597		69,191		54,742		32,664
Dynamic Software Portfolio		95,163		34,792		41,026		19,345

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 Group, 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 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 Fund listed below has not owned enough of the outstanding voting securities of the issuer to have control (as defined in the 1940 Act) of that issuer. The table below shows Dynamic Pharmaceuticals Portfolio’s transactions in, and earnings from, its investment in affiliates for the fiscal year ended April 30, 2016.

Dynamic Pharmaceuticals Portfolio

	Value April 30, 2015		Purchases at Cost		Proceeds from Sales			Change in Unrealized Appreciation (Depreciation)			Realized Gain (Loss)			Value April 30, 2016		Dividend Income
BioDelivery Sciences International, Inc.*	$	34,829,025	$	891,892	$	(34,778,800	)	$	30,975,998		$	(31,918,115	)	$	—	$	—
Heron Therapeutics, Inc.		—		100,923,340		(17,630,189	)		(25,070,208	)		(5,834,668	)		52,388,275		—
Ligand Pharmaceuticals, Inc.**		91,353,087		17,913,597		(81,912,406	)		(4,326,899	)		33,838,330			56,865,709		—
Omeros Corp.*		62,468,093		20,684,822		(58,439,533	)		14,767,515			(39,480,897	)		—		—
Total Investments in Affiliates	$	188,650,205	$	140,413,651	$	(192,760,928	)	$	16,346,406		$	(43,395,350	)	$	109,253,984	$	—

* At April 30, 2016, this security was no longer held.

** At April 30, 2016, this security was no longer affiliated.

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

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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, 2016, 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
Dynamic Biotechnology & Genome Portfolio
Equity Securities	$	302,406,104	$	—	$	338,011	$	302,744,115

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, 2016 and 2015:

	2016						2015
	Ordinary Income		Long-Term Capital Gains		Return of Capital		Ordinary Income		Long-Term Capital Gains		Return of Capital
Dynamic Biotechnology & Genome Portfolio	$	4,955,367	$	—	$	—	$	2,402,943	$	—	$	—
Dynamic Building & Construction Portfolio		67,537		—		—		69,918		—		—
Dynamic Energy Exploration & Production Portfolio		2,429,800		—		—		1,923,020		—		—
Dynamic Food & Beverage Portfolio		2,995,165		—		—		4,913,796		—		—
Dynamic Leisure and Entertainment Portfolio		444,265		—		—		1,429,697		—		—
Dynamic Media Portfolio		1,074,222		—		—		1,051,471		—		—
Dynamic Networking Portfolio		—		—		—		—		—		—
Dynamic Oil & Gas Services Portfolio		831,786		—		—		1,024,494		—		—
Dynamic Pharmaceuticals Portfolio		49,953,074		37,675,517		—		35,713,718		7,688,708		—
Dynamic Retail Portfolio		182,321		—		—		205,959		—		—
Dynamic Semiconductors Portfolio		100,980		—		—		415,087		—		146,696
Dynamic Software Portfolio		83,133		—		—		49,038		—		—

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
Dynamic Biotechnology & Genome Portfolio	$	63,920	$	(27,037	)	$	(21,825,467	)	$	(123,638,634	)	$	(79,969,792	)	$	492,981,142	$	267,584,132
Dynamic Building & Construction Portfolio		66,379		(16,569	)		7,476,154			(22,299,363	)		(1,694,104	)		76,668,585		60,201,082
Dynamic Energy Exploration & Production Portfolio		3,825,232		(18,857	)		1,159,015			(79,796,750	)		(26,656,814	)		176,169,904		74,681,730
Dynamic Food & Beverage Portfolio		734,129		(22,430	)		12,558,655			(54,787,695	)		(16,809,986	)		358,782,422		300,455,095

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	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
Dynamic Leisure and Entertainment Portfolio	$	—	$	(17,566	)	$	492,091		$	(32,309,361	)	$	(7,714,632	)	$	182,303,758	$	142,754,290
Dynamic Media Portfolio		—		(19,384	)		2,538,395			(67,850,753	)		(7,384,989	)		163,177,705		90,460,974
Dynamic Networking Portfolio		105,775		(15,640	)		1,186,343			(33,900,575	)		(1,990,694	)		54,804,110		20,189,319
Dynamic Oil & Gas Services Portfolio		108,847		(24,266	)		(8,749,364	)		(199,957,322	)		(14,826,752	)		268,982,665		45,533,808
Dynamic Pharmaceuticals Portfolio		1,804,064		(40,314	)		(102,020,917	)		(74,153,772	)		(14,115,057	)		1,357,051,704		1,168,525,708
Dynamic Retail Portfolio		34,002		(14,891	)		(444,144	)		(19,508,679	)		(2,077,244	)		43,427,414		21,416,458
Dynamic Semiconductors Portfolio		153,738		(15,669	)		(1,066,340	)		(38,319,995	)		(5,902,669	)		94,149,786		48,998,851
Dynamic Software Portfolio**		—		(16,285	)		1,351,186			(24,550,869	)		(2,828,676	)		99,891,228		73,846,584

* 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 Software Portfolio incurred and will elect to defer Late-Year Ordinary Losses of $42,694, and Post-October Capital Losses of $2,785,982.

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.

The following table presents available capital loss carryforwards and expiration dates for each Fund as of April 30, 2016.

							Post-effective/ no expiration
	2017		2018		2019		Short-Term		Long-Term		Total*		Expired
Dynamic Biotechnology & Genome Portfolio	$	34,286,844	$	50,397,332	$	12,898,182	$	26,056,276	$	—	$	123,638,634	$	15,818,255
Dynamic Building & Construction Portfolio		2,843,349		3,001,058		6,653,613		8,635,189		1,166,154		22,299,363		742,893
Dynamic Energy Exploration & Production Portfolio		7,646,917		21,471,013		1,361,799		40,628,552		8,688,469		79,796,750		3,232,521
Dynamic Food & Beverage Portfolio		7,585,250		10,245,302		—		35,415,240		1,541,903		54,787,695		1,260,041
Dynamic Leisure and Entertainment Portfolio		2,895,936		2,889,449		2,356,106		24,167,870		—		32,309,361		2,111,801
Dynamic Media Portfolio		4,930,761		5,161,647		6,294,489		50,786,045		677,811		67,850,753		2,505,039
Dynamic Networking Portfolio		1,975,581		512,618		730,670		20,791,952		9,889,754		33,900,575		1,064,275
Dynamic Oil & Gas Services Portfolio		24,680,663		85,028,926		35,877,910		35,323,845		19,045,978		199,957,322		7,909,602
Dynamic Pharmaceuticals Portfolio		—		—		—		74,150,158		3,614		74,153,772		—
Dynamic Retail Portfolio		2,427,604		1,816,180		2,176,015		12,778,354		310,526		19,508,679		1,908,967
Dynamic Semiconductors Portfolio		14,001,359		10,902,954		2,120,823		10,315,328		979,531		38,319,995		10,196,415
Dynamic Software Portfolio		7,095,351		2,938,722		3,242,208		11,274,588		—		24,550,869		1,542,190

* 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, 2016, 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	$	310,619,695	$	310,508,144
Dynamic Building & Construction Portfolio		52,353,888		52,301,642
Dynamic Energy Exploration & Production Portfolio		122,044,274		121,535,905
Dynamic Food & Beverage Portfolio		282,171,630		278,909,800
Dynamic Leisure and Entertainment Portfolio		256,942,207		257,536,020
Dynamic Media Portfolio		152,020,389		152,787,642
Dynamic Networking Portfolio		21,726,502		21,381,952
Dynamic Oil & Gas Services Portfolio		45,907,580		45,855,591
Dynamic Pharmaceuticals Portfolio		427,663,123		505,173,457
Dynamic Retail Portfolio		32,233,029		33,436,161
Dynamic Semiconductors Portfolio		68,097,787		67,729,963
Dynamic Software Portfolio		117,671,727		116,596,975

For the fiscal year ended April 30, 2016, in-kind transactions associated with creations and redemptions were as follows:

	Cost of Securities Received		Value of Securities Delivered
Dynamic Biotechnology & Genome Portfolio	$	91,211,672	$	218,393,109
Dynamic Building & Construction Portfolio		34,219,715		33,245,953
Dynamic Energy Exploration & Production Portfolio		49,519,083		53,162,567
Dynamic Food & Beverage Portfolio		341,766,540		318,878,358
Dynamic Leisure and Entertainment Portfolio		158,280,196		198,913,285
Dynamic Media Portfolio		125,188,120		166,659,773
Dynamic Networking Portfolio		9,058,916		14,379,020
Dynamic Oil & Gas Services Portfolio		15,126,070		20,034,712
Dynamic Pharmaceuticals Portfolio		402,197,823		848,794,544
Dynamic Retail Portfolio		18,325,304		33,025,174
Dynamic Semiconductors Portfolio		43,251,740		65,073,999
Dynamic Software Portfolio		98,910,115		78,220,568

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

At April 30, 2016, 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	$	16,553,926	$	(38,379,393	)	$	(21,825,467	)	$	324,569,582
Dynamic Building & Construction Portfolio		8,110,255		(634,101	)		7,476,154			52,780,206
Dynamic Energy Exploration & Production Portfolio		13,798,242		(12,639,227	)		1,159,015			73,703,915
Dynamic Food & Beverage Portfolio		20,347,217		(7,788,562	)		12,558,655			288,067,918
Dynamic Leisure and Entertainment Portfolio		9,847,550		(9,355,459	)		492,091			142,361,012
Dynamic Media Portfolio		6,727,050		(4,188,655	)		2,538,395			88,016,434
Dynamic Networking Portfolio		2,091,065		(904,722	)		1,186,343			19,803,316
Dynamic Oil & Gas Services Portfolio		1,697,620		(10,446,984	)		(8,749,364	)		54,423,382
Dynamic Pharmaceuticals Portfolio		98,007,447		(200,028,364	)		(102,020,917	)		1,372,714,269
Dynamic Retail Portfolio		862,320		(1,306,464	)		(444,144	)		21,904,436
Dynamic Semiconductors Portfolio		1,595,032		(2,661,372	)		(1,066,340	)		50,119,499
Dynamic Software Portfolio		3,308,653		(1,957,467	)		1,351,186			72,550,492

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Note 8. Reclassification of Permanent Differences

Primarily as a result of differing book/tax treatment of in-kind transactions, expired capital loss carryforwards and distributions on April 30, 2016, 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, 2016, the reclassifications were as follows:

	Undistributed Net Investment Income (Loss)			Undistributed Net Realized Gain (Loss)			Shares of Beneficial Interest
Dynamic Biotechnology & Genome Portfolio	$	—		$	(24,529,149	)	$	24,529,149
Dynamic Building & Construction Portfolio		—			(2,472,621	)		2,472,621
Dynamic Energy Exploration & Production Portfolio		3,736,263			(1,825,940	)		(1,910,323	)
Dynamic Food & Beverage Portfolio		—			(33,010,829	)		33,010,829
Dynamic Leisure and Entertainment Portfolio		(116,365	)		(13,530,946	)		13,647,311
Dynamic Media Portfolio		374,091			(8,975,476	)		8,601,385
Dynamic Networking Portfolio		—			(2,150,689	)		2,150,689
Dynamic Oil & Gas Services Portfolio		30,933			7,981,506			(8,012,439	)
Dynamic Pharmaceuticals Portfolio		—			(232,398,978	)		232,398,978
Dynamic Retail Portfolio		—			(1,605,777	)		1,605,777
Dynamic Semiconductors Portfolio		—			5,822,546			(5,822,546	)
Dynamic Software Portfolio		101,524			(3,077,304	)		2,975,780

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.

74

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, 2016, 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, 2016 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 23, 2016

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, 2016.

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, 2015		Ending Account Value April 30, 2016		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	$	791.29		0.60	%	$	2.67
Hypothetical (5% return before expenses)		1,000.00		1,021.88		0.60			3.02
PowerShares Dynamic Building & Construction Portfolio (PKB)
Actual		1,000.00		1,043.03		0.63			3.20
Hypothetical (5% return before expenses)		1,000.00		1,021.73		0.63			3.17
PowerShares Dynamic Energy Exploration & Production Portfolio (PXE)
Actual		1,000.00		885.17		0.63			2.95
Hypothetical (5% return before expenses)		1,000.00		1,021.73		0.63			3.17
PowerShares Dynamic Food & Beverage Portfolio (PBJ)
Actual		1,000.00		966.36		0.58			2.84
Hypothetical (5% return before expenses)		1,000.00		1,021.98		0.58			2.92
PowerShares Dynamic Leisure and Entertainment Portfolio (PEJ)
Actual		1,000.00		929.69		0.59			2.83
Hypothetical (5% return before expenses)		1,000.00		1,021.93		0.59			2.97
PowerShares Dynamic Media Portfolio (PBS)
Actual		1,000.00		956.75		0.62			3.02
Hypothetical (5% return before expenses)		1,000.00		1,021.78		0.62			3.12
PowerShares Dynamic Networking Portfolio (PXQ)
Actual		1,000.00		929.82		0.63			3.02
Hypothetical (5% return before expenses)		1,000.00		1,021.73		0.63			3.17
PowerShares Dynamic Oil & Gas Services Portfolio (PXJ)
Actual		1,000.00		970.52		0.63			3.09
Hypothetical (5% return before expenses)		1,000.00		1,021.73		0.63			3.17

76

Fees and Expenses (continued)

	Beginning Account Value November 1, 2015		Ending Account Value April 30, 2016		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During the Six-Month  Period(1)
PowerShares Dynamic Pharmaceuticals Portfolio (PJP)
Actual	$	1,000.00	$	928.17		0.58	%	$	2.78
Hypothetical (5% return before expenses)		1,000.00		1,021.98		0.58			2.92
PowerShares Dynamic Retail Portfolio (PMR)
Actual		1,000.00		949.46		0.63			3.05
Hypothetical (5% return before expenses)		1,000.00		1,021.73		0.63			3.17
PowerShares Dynamic Semiconductors Portfolio (PSI)
Actual		1,000.00		971.28		0.63			3.09
Hypothetical (5% return before expenses)		1,000.00		1,021.73		0.63			3.17
PowerShares Dynamic Software Portfolio (PSJ)
Actual		1,000.00		974.61		0.63			3.09
Hypothetical (5% return before expenses)		1,000.00		1,021.73		0.63			3.17

⁽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, 2016. Expenses are calculated by multiplying the Fund’s annualized expense ratio by the average account value for the period, then multiplying the results by 182/366. Expense ratios for the most resent six-month period may differ from expense ratios based on the annualized data in the Financial Highlights.

77

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, 2016:

	Qualified Dividend Income*			Dividends-Received Deduction*
PowerShares Dynamic Biotechnology & Genome Portfolio		30	%		30	%
PowerShares Dynamic Building & Construction Portfolio		100	%		100	%
PowerShares Dynamic Energy Exploration & Production Portfolio		47	%		47	%
PowerShares Dynamic Food & Beverage Portfolio		100	%		100	%
PowerShares Dynamic Leisure and Entertainment Portfolio		100	%		100	%
PowerShares Dynamic Media Portfolio		100	%		100	%
PowerShares Dynamic Networking Portfolio		0	%		0	%
PowerShares Dynamic Oil & Gas Services Portfolio		100	%		73	%
PowerShares Dynamic Pharmaceuticals Portfolio		31	%		31	%
PowerShares Dynamic Retail Portfolio		100	%		100	%
PowerShares Dynamic Semiconductors Portfolio		100	%		100	%
PowerShares Dynamic Software Portfolio		100	%		100	%

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

PowerShares Dynamic Pharmaceuticals Portfolio designates $37,675,517 as a long-term capital gain distribution for the year ended April 30, 2016.

78

Trustees and Officers

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

The Trustees and officers information is current as of April 30, 2016.

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	Chairman of the Nominating and Governance Committee and Trustee	Chairman of the Nominating and Governance Committee and 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).	124	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 (2010-2016); 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.	124	None
Marc M. Kole—1960 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Chairman of the Audit Committee and Trustee	Chairman of the Audit Committee since 2008; and Trustee since 2006	Senior Director of Finance, By The Hand Club for Kids (2015-Present); 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).	124	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, 2016, the “Fund Family” consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 71 portfolios advised by the Adviser.

79

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
Yung Bong Lim—1964 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Chairman of the Investment Oversight Committee and Trustee	Chairman of the Investment Oversight Committee since 2014; Trustee since 2013	Managing Partner, Residential Dynamics Group LLC (2008-Present); formerly, Managing Director, Citadel Investment Group, L.L.C. (1999-2007).	124	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).	124	None
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).	124	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 and Chief Executive Officer, Stone Pillar Advisors, Ltd. (2010-Present); formerly, Chairman, President and Chief Executive Officer, Community Financial Shares, Inc. and Community Bank—Wheaton/Glen Ellyn (subsidiary) (2013-2015); 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).	124	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, 2016, the “Fund Family” consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 71 portfolios advised by the Adviser.

80

Trustees and Officers (continued)

The Non-Independent Trustees and the executive officers of the Trust, their term of office and length of time served, their principal business occupations during 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 Trustees are shown below.

Name, Address and Year of Birth of Non-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 Non-Independent Trustee	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. (2007-Present); Director, Invesco Advisers, Inc. (2009-Present); Director, Invesco Finance PLC, 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., IVZ, Inc. and Invesco Asset Management (Bermuda) Ltd.; Manager, Horizon Flight Works LLC; Director and Secretary, IVZ Bahamas Private Limited; formerly, Director, INVESCO Funds Group, Inc., 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.	124	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, 2016, the Fund Complex consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 71 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
Daniel E. Draper—1968 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	President and Principal Executive Officer	Since 2015	President and Principal Executive Officer, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2015-Present); Chief Executive Officer (2016-Present) and Managing Director (2013-Present), Invesco PowerShares Capital Management LLC; Senior Vice President, Invesco Distributors, Inc. (2014-Present); formerly, 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 (2013-2015) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-2015); 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, 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).
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 (2010-Present); formerly, Vice President of Portfolio Management, Invesco PowerShares Capital Management LLC (2008-2010); 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).
Christopher Joe—1969 Invesco PowerShares Capital Management LLC 11 Greenway Plaza, Suite 1000 Houston, TX 77046-1173	Chief Compliance Officer	Since 2012	Chief Compliance Officer of Invesco PowerShares Capital Management LLC (2015-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); formerly, Chief Compliance Officer, Invesco Investment Advisers, LLC (registered investment adviser) (2010–2013), U.S. Compliance Director, Invesco, Ltd. (2006-2014) and Deputy Chief Compliance Officer of Invesco Advisers, Inc. (2014-2015).

* 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.

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
Sheri Morris—1964 Invesco Management Group, Inc. 11 Greenway Plaza, Suite 1000 Houston, TX 77046	Vice President	Since 2012	President, Principal Executive Officer and Treasurer, The Invesco Funds (2016-Present); 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, Vice President, Treasurer and Principal Financial Officer, The Invesco Funds (2008-2016); 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.
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 (2010-Present) and Secretary (2015-Present), 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).
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 Services, Invesco PowerShares Capital Management LLC (2013-Present).
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, and 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, 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.); Chief Administrative Officer, North American Retail, Invesco Ltd. (2007-Present); Director, Invesco Corporate Class Inc. (2014-Present); Director, Invesco Global Direct Real Estate Feeder GP Ltd. (2015-Present); Director, Invesco Canada Holdings Inc. (2002-Present); Director, Invesco Financial Services Ltd. / Services Financiers Invesco Ltée and Trimark Investments Ltd./Placements Trimark Ltée (2014-Present); Director, Invesco IP Holdings (Canada) Ltd. (2016-Present); Director, Invesco Global Direct Real Estate GP Ltd. (2015-Present); formerly, Executive Vice President and Chief Financial Officer, Invesco Inc. (2009-2015); Director, Executive Vice President and Chief Financial Officer, Invesco Canada Ltd. (formerly, Invesco Trimark Ltd.) (2000-2011).

* 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.

83

Trustees and Officers (continued)

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.

84

Board Considerations Regarding Continuation of Investment Advisory Agreement

At a meeting held on April 14, 2016, 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 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 Russell Top 200 Equal Weight Portfolio

PowerShares Russell Top 200 Pure Growth Portfolio

PowerShares Russell Top 200 Pure Value Portfolio

PowerShares Russell Midcap Equal Weight Portfolio

PowerShares Russell Midcap Pure Growth Portfolio

PowerShares Russell Midcap Pure Value Portfolio

PowerShares Russell 2000 Equal Weight Portfolio

PowerShares Russell 2000 Pure Growth Portfolio

PowerShares Russell 2000 Pure Value Portfolio

PowerShares S&P 500^® 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 for each Fund, (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.

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, 2015, 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 certain Funds and their underlying indexes. In reviewing the tracking error reports, 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 correlation and tracking error for

85

Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)

each Fund was within the targeted range set forth in the Trust’s registration statement and 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^TM Portfolio, PowerShares High Yield Equity Dividend Achievers^TM Portfolio, PowerShares International Dividend Achievers^TM Portfolio, PowerShares FTSE RAFI US 1000 Portfolio, PowerShares FTSE RAFI US 1500 Small-Mid Portfolio, PowerShares Russell Top 200 Equal Weight Portfolio, PowerShares Russell Top 200 Pure Growth Portfolio, PowerShares Russell Top 200 Pure Value Portfolio, PowerShares Russell Midcap Equal Weight Portfolio, PowerShares Russell Midcap Pure Growth Portfolio, PowerShares Russell Midcap Pure Value Portfolio, PowerShares Russell 2000 Equal Weight Portfolio, PowerShares Russell 2000 Pure Growth Portfolio, PowerShares Russell 2000 Pure Value Portfolio and PowerShares S&P 500^® Quality Portfolio;

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

● 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 Russell Top 200 Pure Growth Portfolio, PowerShares Russell Top 200 Pure Value Portfolio, PowerShares Russell Midcap Pure Growth Portfolio, PowerShares Russell Midcap Pure Value Portfolio, PowerShares Russell 2000 Pure Growth, Portfolio, PowerShares Russell 2000 Pure Value Portfolio and PowerShares S&P 500^® Quality Portfolio; and

● 0.25% of the Fund’s average daily net assets for each of PowerShares Russell Top 200 Equal Weight Portfolio, PowerShares Russell Midcap Equal Weight Portfolio and PowerShares Russell 2000 Equal Weight Portfolio (The net advisory fees, after giving effect to the Expense Caps below, were 0.01%, -0.05% and -0.39% and, respectively, for PowerShares Russell Top 200 Equal Weight Portfolio, PowerShares Russell Midcap Equal Weight Portfolio and PowerShares Russell 2000 Equal Weight 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, 2017, 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^TM Portfolio, PowerShares High Yield Equity Dividend Achievers^TM Portfolio and PowerShares International Dividend Achievers^TM 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 Russell Top 200 Pure Growth Portfolio, PowerShares Russell Top 200 Pure Value Portfolio, PowerShares Russell Midcap Pure Growth Portfolio, PowerShares Russell Midcap Pure Value Portfolio, PowerShares Russell 2000 Pure Growth Portfolio and PowerShares Russell 2000 Pure 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^® Quality Portfolio;

● 0.25%, excluding interest expenses, offering costs, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses for PowerShares Top 200 Equal Weight Portfolio, PowerShares Russell Midcap Equal Weight Portfolio and PowerShares Russell 2000 Equal Weight Portfolio;

86

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 Median*	Equal to/Lower than Open-End Active Fund Median
PowerShares Aerospace & Defense Portfolio			X
PowerShares Buyback Achievers Portfolio			X
PowerShares Cleantech Portfolio			X
PowerShares Dividend Achievers Portfolio		X	X
PowerShares DWA Basic Materials Momentum Portfolio			X
PowerShares DWA Consumer Cyclicals Momentum Portfolio			X
PowerShares DWA Consumer Staples Momentum Portfolio			X
PowerShares DWA Energy Momentum Portfolio			X
PowerShares DWA Financial Momentum Portfolio			X
PowerShares DWA Healthcare Momentum Portfolio			X
PowerShares DWA Industrials Momentum Portfolio			X
PowerShares DWA Momentum Portfolio			X
PowerShares DWA NASDAQ Momentum Portfolio			X
PowerShares DWA Technology Momentum Portfolio			X
PowerShares DWA Utilities Momentum Portfolio			X
PowerShares Dynamic Biotechnology & Genome Portfolio			X
PowerShares Dynamic Building & Construction Portfolio			X
PowerShares Dynamic Energy Exploration & Production Portfolio			X
PowerShares Dynamic Food & Beverage Portfolio			X
PowerShares Dynamic Large Cap Growth Portfolio			X
PowerShares Dynamic Large Cap Value Portfolio			X
PowerShares Dynamic Leisure and Entertainment Portfolio			X
PowerShares Dynamic Market Portfolio			X
PowerShares Dynamic Media Portfolio			X
PowerShares Dynamic Networking Portfolio			X
PowerShares Dynamic Oil & Gas Services Portfolio			X
PowerShares Dynamic Pharmaceuticals Portfolio			X
PowerShares Dynamic Retail Portfolio			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 Dynamic Semiconductors Portfolio			X
PowerShares Dynamic Software Portfolio			X
PowerShares Financial Preferred Portfolio		N/A	X
PowerShares FTSE RAFI US 1000 Portfolio			X
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio	X		X
PowerShares Russell Top 200 Equal Weight Portfolio		X	X
PowerShares Russell Top 200 Pure Growth Portfolio			X
PowerShares Russell Top 200 Pure Value Portfolio			X
PowerShares Russell Midcap Equal Weight Portfolio			X
PowerShares Russell Midcap Pure Growth Portfolio	X	X	X
PowerShares Russell Midcap Pure Value Portfolio	X		X
PowerShares Russell 2000 Equal Weight Portfolio	X		X
PowerShares Russell 2000 Pure Growth Portfolio		X	X
PowerShares Russell 2000 Pure Value Portfolio			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 Quality Portfolio			X
PowerShares Water Resources Portfolio			X
PowerShares WilderHill Clean Energy Portfolio			X
PowerShares WilderHill Progressive Energy Portfolio			X
PowerShares Zacks Micro Cap Portfolio			X

* 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			X
PowerShares Buyback Achievers Portfolio			X
PowerShares Cleantech Portfolio			X
PowerShares Dividend Achievers Portfolio		X	X
PowerShares DWA Basic Materials Momentum Portfolio			X
PowerShares DWA Consumer Cyclicals Momentum Portfolio			X
PowerShares DWA Consumer Staples Momentum Portfolio			X

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 Median	Equal to/Lower than Open-End Active Fund Median
PowerShares DWA Energy Momentum Portfolio			X
PowerShares DWA Financial Momentum Portfolio			X
PowerShares DWA Healthcare Momentum Portfolio			X
PowerShares DWA Industrials Momentum Portfolio			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			X
PowerShares Dynamic Building & Construction Portfolio			X
PowerShares Dynamic Energy Exploration & Production Portfolio			X
PowerShares Dynamic Food & Beverage Portfolio			X
PowerShares Dynamic Large Cap Growth Portfolio			X
PowerShares Dynamic Large Cap Value Portfolio			X
PowerShares Dynamic Leisure and Entertainment Portfolio			X
PowerShares Dynamic Market Portfolio			X
PowerShares Dynamic Media Portfolio			X
PowerShares Dynamic Networking Portfolio			X
PowerShares Dynamic Oil & Gas Services Portfolio			X
PowerShares Dynamic Pharmaceuticals Portfolio			X
PowerShares Dynamic Retail Portfolio			X
PowerShares Dynamic Semiconductors Portfolio			X
PowerShares Dynamic Software Portfolio			X
PowerShares Financial Preferred Portfolio		N/A	X
PowerShares FTSE RAFI US 1000 Portfolio	X	X	X
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio	X	X	X
PowerShares Russell Top 200 Equal Weight Portfolio		X	X
PowerShares Russell Top 200 Pure Growth Portfolio		X	X
PowerShares Russell Top 200 Pure Value Portfolio			X
PowerShares Russell Midcap Equal Weight Portfolio		X	X
PowerShares Russell Midcap Pure Growth Portfolio	X	X	X
PowerShares Russell Midcap Pure Value Portfolio	X		X
PowerShares Russell 2000 Equal Weight Portfolio	X	X	X
PowerShares Russell 2000 Pure Growth Portfolio		X	X
PowerShares Russell 2000 Pure 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 Quality Portfolio	X	X	X
PowerShares Water Resources Portfolio			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 WilderHill Clean Energy Portfolio			X
PowerShares WilderHill Progressive Energy Portfolio			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 Cap agreed to by the Adviser. 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.

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

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

90

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.

©2016 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, 2016

2016 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

US Equity

Although the health of individual economic sectors varied dramatically, the US economy overall continued its slow but steady growth during the fiscal year ended April 30, 2016. This modest growth led to recurring debate over whether the US economy could withstand global recessionary forces. Many energy, industrial and materials companies experienced cyclical downturns resembling a mild recession even as many consumer-related companies benefited from continued low interest rates, increased availability of credit and a better employment picture. Another significant downturn in oil prices reduced capital investment but also reduced consumers’ energy and gasoline costs.

In the first half of the reporting period, US equity market performance was greatly affected by expectations of when, and whether, the US Federal Reserve (the “Fed”) might raise interest rates—and the impact the Fed’s action might have. Markets moved lower in the summer of 2015 as a significant downturn in China’s financial markets and weak global economic growth led to increased concern about the sustainability of US economic growth. In the fall, markets rallied and the Fed saw enough economic stabilization to finally raise interest rates.

US stocks began 2016 on a negative note. Together with a sharp decline in oil prices, this suggested a global recession might be imminent and caused investors to become decidedly risk averse; this helped short-term and income-oriented investments, but hurt longer-term and growth-oriented investments. As companies reported earnings and fundamentals that were better than had been feared, stocks rallied sharply in late February and March. Additionally, oil prices strengthened modestly on the back of a weaker US dollar and as Saudi Arabia and Russia considered a freeze on their oil output. Overall, US equity markets were mixed, with the S&P 500 Index, considered representative of the performance of the US stock market, finishing the reporting period modestly higher.

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 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 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 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 basic materials 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, 2016, on a market price basis, the Fund returned 2.47%. On a net asset value (“NAV”) basis, the Fund returned 2.32%. During the same time period, the Index returned 3.01%. 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 (4.30)%. 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 and 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 diversified chemicals sub-industry during the fiscal year ended April 30, 2016. The majority of the Fund’s outperformance relative to the Benchmark Index during the period can be attributed to stock selection in the diversified chemicals and steel sub industries as well as being overweight in the specialized real estate investment trust (“REIT”) and specialty chemicals sub-industries.

For the fiscal year ended April 30, 2016, the steel sub-industry contributed most significantly to the Fund’s return, followed by the industrial gases and gold sub-industries, respectively. The commodity chemicals sub-industry detracted most significantly from the Fund’s return, followed by the fertilizers & agricultural chemicals and oil & gas refining & marketing sub-industries, respectively.

Positions that contributed most significantly to the Fund’s return included Airgas, Inc., an industrial gases company (no longer held at fiscal year-end), and United States Steel Corp., a steel company (portfolio average weight of 0.58%). Positions that detracted most significantly from the Fund’s return included Westlake Chemical Corp., a commodity chemicals company (no longer held at fiscal year-end), and Green Plains, Inc., an oil & gas refining & marketing company (no longer held at fiscal year-end).

4

PowerShares DWA Basic Materials Momentum Portfolio (PYZ) (continued)

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2016
Specialty Chemicals	41.2
Steel	14.5
Paper Packaging	6.3
Industrial Gases	5.9
Gold	5.0
Commodity Chemicals	4.3
Aluminum	4.0
Diversified Metals & Mining	4.0
Diversified Chemicals	3.8
Fertilizers & Agricultural Chemicals	3.5
Silver	2.9
Paper Products	1.3
Forest Products	1.1
Precious Metals & Minerals	1.1
Oil & Gas Equipment & Services	1.0
Money Market Fund Plus Other Assets Less Liabilities	0.1
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2016
Security
Ashland, Inc.	4.8
W.R. Grace & Co.	4.6
LyondellBasell Industries NV, Class A	4.3
PPG Industries, Inc.	4.1
Eastman Chemical Co.	3.9
International Flavors & Fragrances, Inc.	3.7
Monsanto Co.	3.5
Air Products & Chemicals, Inc.	3.5
Newmont Mining Corp.	3.2
Avery Dennison Corp.	3.2
Total	38.8

* Excluding money market fund holdings.

5

PowerShares DWA Basic Materials Momentum Portfolio (PYZ) (continued)

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

Fund Performance History as of April 30, 2016

	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 Leaders Index††		3.01	%		9.74	%		32.15	%		8.09	%		47.53	%		10.62	%		162.28	%
S&P 500® Materials Index		(4.30	)		8.24			26.82			5.38			29.98			6.49			82.36
Fund
NAV Return		2.32			9.02			29.56			7.32			42.36			9.71			142.19
Market Price Return		2.47			9.12			29.92			7.33			42.41			9.72			142.42

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, 2017. 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 0.60%. 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 their respective 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 Blended-Dorsey Wright^® Basic Materials Technical Leaders 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, 2016.

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 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 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, 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, 2016, on a market price basis, the Fund returned (7.76)%. On a net asset value (“NAV”) basis, the Fund returned (7.73)%. During the same time period, the Index returned (7.14)%. 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 Discretionary Index (the “Benchmark Index”) returned 6.93%. 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 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, 2016. The majority of the Fund’s underperformance relative to the Benchmark Index during the period can be attributed to stock selection in the apparel retail, media and restaurant subindustries.

For the fiscal year ended April 30, 2016, the leisure facilities sub-industry contributed most significantly to the Fund’s return, followed by the footwear and automotive retail sub-industries, respectively. The department stores sub-industry detracted most significantly from the Fund’s return, followed by the hotels resorts & cruise lines and apparel accessories & luxury goods sub-industries, respectively.

Positions that contributed most significantly to the Fund’s return included Hawaiian Holdings, Inc., an airlines company (portfolio average weight of 2.21%), and O’Reilly Automotive, Inc., an automotive retail company (portfolio average weight of 5.80%). Positions that detracted most significantly from the Fund’s return included Dillard’s, Inc. Class A, a department stores company (no longer held at fiscal year-end), and Nexstar Broadcasting Group, Inc. Class A, a broadcasting 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, 2016
Apparel Retail	12.8
Airlines	11.5
Restaurants	11.3
Automotive Retail	7.9
Footwear	7.9
Auto Parts & Equipment	6.9
Specialty Stores	6.3
Home Entertainment Software	5.1
Leisure Facilities	4.1
Apparel, Accessories & Luxury Goods	3.3
Cable & Satellite	3.1
Home Improvement Retail	2.8
Movies & Entertainment	2.7
Household Appliances	2.4
Hypermarkets & Super Centers	2.4
Tires & Rubber	2.1
Distributors	2.0
Internet Retail	1.9
Casinos & Gaming	1.8
Consumer Electronics	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, 2016
Security
O’Reilly Automotive, Inc.	4.4
Skechers U.S.A., Inc., Class A	4.1
NIKE, Inc., Class B	3.8
Domino’s Pizza, Inc.	3.7
Tractor Supply Co.	3.7
AutoZone, Inc.	3.5
Hawaiian Holdings, Inc.	3.5
Ross Stores, Inc.	3.4
Alaska Air Group, Inc.	3.4
Electronic Arts, Inc.	3.2
Total	36.7

* Excluding money market fund holdings.

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

8

PowerShares DWA Consumer Cyclicals Momentum Portfolio (PEZ) (continued)

Fund Performance History as of April 30, 2016

	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 Cyclicals Technical Leaders Index††		(7.14	)%		8.47	%		27.62	%		10.39	%		63.93	%		6.80	%		87.48	%
S&P 500® Consumer Discretionary Index		6.93			15.03			52.19			16.26			112.38			10.19			152.60
Fund
NAV Return		(7.73	)		7.75			25.11			9.62			58.32			6.15			76.85
Market Price Return		(7.76	)		7.78			25.19			9.63			58.34			6.15			76.87

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, 2017. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.78% 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 their respective 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 Blended-Dorsey Wright^® Consumer Cyclicals Technical Leaders 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, 2016.

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 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 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, 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, 2016, on a market price basis, the Fund returned 9.67%. On a net asset value (“NAV”) basis, the Fund returned 9.67%. During the same time period, the Index returned 10.38%. 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 10.86%. 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 housewares & specialties sub-industry and most underweight in the soft drinks sub-industry during the fiscal year ended April 30, 2016. The majority of the Fund’s underperformance relative to the Benchmark Index during the period can be attributed to stock selections in the consumer services sub-industry, being underweight in the household products sub–industry and the fees and operating expenses that the Fund incurred.

For the fiscal year ended April 30, 2016, the tobacco sub-industry contributed most significantly to the Fund’s return, followed by the household products and distillers & vintners sub-industries, respectively. The specialized consumer services sub-industry detracted most significantly from the Fund’s return, followed by the personal products and home furnishings sub-industries, respectively.

Positions that contributed most significantly to the Fund’s return included Reynolds American, Inc., a tobacco company (portfolio average weight of 4.60%), and Altria Group, Inc., a tobacco company (portfolio average weight of 4.90%). Positions that detracted most significantly from the Fund’s return included Hain Celestial Group, Inc. (The), a packaged foods & meats company (no longer held at fiscal year-end), and Fairway Group Holdings Corp. Class A, a food retail company (no longer held at fiscal year-end).

10

PowerShares DWA Consumer Staples Momentum Portfolio (PSL) (continued)

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2016
Packaged Foods & Meats	26.2
Household Products	11.5
Tobacco	10.4
Personal Products	8.6
Soft Drinks	8.2
Distillers & Vintners	7.6
Specialized Consumer Services	5.9
Industrial Machinery	5.5
Agricultural Products	3.0
Internet Software & Services	3.0
Health Care Services	2.6
Brewers	2.0
Environmental & Facilities Services	1.6
Household Appliances	1.6
Education Services	1.4
Food Distributors	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, 2016
Security
Altria Group, Inc.	5.4
Monster Beverage Corp.	5.0
Reynolds American, Inc.	5.0
Church & Dwight Co., Inc.	4.9
Constellation Brands, Inc., Class A	4.7
McCormick & Co., Inc.	3.9
Weight Watchers International, Inc.	3.6
Estee Lauder Cos., Inc. (The), Class A	3.5
Tyson Foods, Inc., Class A	3.3
Dr Pepper Snapple Group, Inc.	3.2
Total	42.5

* Excluding money market fund holdings.

11

PowerShares DWA Consumer Staples Momentum Portfolio (PSL) (continued)

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

Fund Performance History as of April 30, 2016

	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 Leaders Index††		10.38	%		14.22	%		49.01	%		14.64	%		97.99	%		11.10	%		173.38	%
S&P 500® Consumer Staples Index		10.86			11.22			37.59			13.72			90.17			10.93			169.21
Fund
NAV Return		9.67			13.50			46.22			13.91			91.80			10.36			156.37
Market Price Return		9.67			13.52			46.30			13.91			91.76			10.36			156.31

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, 2017. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.78% 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 their respective 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 Blended-Dorsey Wright^® Consumer Staples Technical Leaders 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, 2016.

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 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 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 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, 2016, on a market price basis, the Fund returned (22.05)%. On a net asset value (“NAV”) basis, the Fund returned (22.03)%. During the same time period, the Index returned (21.47)%. 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 (13.91)%. 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 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, 2016. The majority of the Fund’s underperformance relative to the Benchmark Index during the period can be attributed to stock selection in the oil and gas services and integrated oil & gas sub-industries as well as being overweight the exploration & production sub-industry.

For the fiscal year ended April 30, 2016, the oil & gas exploration & production sub-industry contributed most significantly to the Fund’s return, followed by the coal & consumable fuels and integrated oil & gas sub-industries, respectively. The oil & gas refining & marketing sub-industry detracted most significantly from the Fund’s return, followed by the oil & gas storage & transportation and oil & gas equipment & services sub-industries, respectively.

Positions that contributed most significantly to the Fund’s return included SM Energy Co., an oil & gas exploration & production company (portfolio average weight of 0.32%), and Parsley Energy, Inc. Class A, an oil & gas exploration & production company (portfolio average weight of 1.65%). Positions that detracted most significantly from the Fund’s return included SemGroup Corp. Class A, an oil & gas storage & transportation company (no longer held at fiscal year-end), and Cheniere Energy, Inc., an oil & gas storage & transportation company (portfolio average weight of 4.20%).

13

PowerShares DWA Energy Momentum Portfolio (PXI) (continued)

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2016
Oil & Gas Exploration & Production	55.5
Oil & Gas Drilling	10.3
Integrated Oil & Gas	8.8
Oil & Gas Storage & Transportation	7.7
Oil & Gas Equipment & Services	7.5
Oil & Gas Refining & Marketing	6.4
Coal & Consumable Fuels	3.7
Money Market Fund Plus Other Assets Less Liabilities	0.1

Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2016
Security
SM Energy Co.	4.8
Concho Resources, Inc.	4.4
Whiting Petroleum Corp.	4.3
Pioneer Natural Resources Co.	4.3
Cheniere Energy, Inc.	4.1
Diamondback Energy, Inc.	4.0
WPX Energy, Inc.	3.8
CONSOL Energy, Inc.	3.7
Tesoro Corp.	3.6
Targa Resources Corp.	3.6
Total	40.6

* Excluding money market fund holdings.

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

Fund Performance History as of April 30, 2016

	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 Leaders Index††		(21.47	)%		(6.08	)%		(17.15	)%		(1.40	)%		(6.79	)%		5.66	%		69.19	%
S&P 500® Energy Index		(13.91	)		(1.98	)		(5.83	)		(1.01	)		(4.93	)		4.43			51.29
Fund
NAV Return		(22.03	)		(6.70	)		(18.77	)		(2.08	)		(9.98	)		5.00			59.28
Market Price Return		(22.05	)		(6.68	)		(18.73	)		(2.09	)		(10.04	)		5.00			59.36

14

PowerShares DWA Energy Momentum Portfolio (PXI) (continued)

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, 2017. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.71% 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 their respective 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 Blended-Dorsey Wright^® Energy Technical Leaders 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, 2016.

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 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 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, 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, 2016, on a market price basis, the Fund returned (3.08)%. On a net asset value (“NAV”) basis, the Fund returned (3.11)%. During the same time period, the Index returned (2.49)%. 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^® Financials Index (the “Benchmark Index”) returned (1.48)%. 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 retail real estate investment trust (“REIT”) sub-industry and most underweight in the diversified banks sub-industry during the fiscal year ended April 30, 2016. The majority of the Fund’s underperformance relative to the Benchmark Index during the period can be attributed to stock selection in the banks sub-industry as well as being underweight in the insurance sub-industries.

For the fiscal year ended April 30, 2016, the specialized REITs sub-industry contributed most significantly to the Fund’s return, followed by the data processing & outsourced services and residential REITs sub-industries, respectively. The thrifts & mortgage finance sub-industry detracted most significantly from the Fund’s return, followed by the consumer finance and property & casualty insurance sub-industries, respectively.

Positions that contributed most significantly to the Fund’s return included Public Storage, a specialized REITs company (portfolio average weight of 5.43%), and Extra Space Storage, Inc., a specialized REITs company (portfolio average weight of 3.91%). Positions that detracted most significantly from the Fund’s return included MGIC Investment Corp., a thrifts & mortgage finance company (no longer held at fiscal year-end), and CBRE Group, Inc. Class A, a real estate services 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, 2016
Retail REITs	28.2
Specialized REITs	12.7
Residential REITs	12.3
Property & Casualty Insurance	11.5
Regional Banks	10.5
Specialized Finance	5.0
Data Processing & Outsourced Services	4.4
Life & Health Insurance	3.9
Diversified REITs	3.6
Multi-line Insurance	2.3
Diversified Banks	2.1
Industrial REITs	1.7
Office REITs	1.7
Money Market Fund Plus Other Assets Less Liabilities	0.1
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2016
Security
General Growth Properties, Inc. REIT	4.7
Simon Property Group, Inc. REIT	4.4
Public Storage REIT	4.3
Federal Realty Investment Trust REIT	4.2
Regency Centers Corp. REIT	3.8
Realty Income Corp. REIT	3.5
Extra Space Storage, Inc. REIT	3.4
Macerich Co. (The) REIT	3.3
Markel Corp.	3.2
XL Group PLC	3.0
Total	37.8

* Excluding money market fund holdings.

17

PowerShares DWA Financial Momentum Portfolio (PFI) (continued)

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

Fund Performance History as of April 30, 2016

	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 Leaders Index††		(2.49	)%		9.26	%		30.43	%		9.75	%		59.21	%		3.73	%		41.87	%
S&P 500® Financials Index		(1.48	)		9.67			31.89			9.39			56.60			(2.20	)		(19.15	)
Fund
NAV Return		(3.11	)		8.50			27.74			8.97			53.63			2.94			31.85
Market Price Return		(3.08	)		8.55			27.89			8.99			53.76			2.95			31.95

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, 2017. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.85% 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 their respective 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 Blended-Dorsey Wright^® Financials Technical Leaders 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, 2016.

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 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 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, 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, 2016, on a market price basis, the Fund returned (23.18)%. On a net asset value (“NAV”) basis, the Fund returned (23.18)%. During the same time period, the Index returned (22.56)%. 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 (1.08)%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 60 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, 2016. The majority of the Fund’s underperformance relative to the Benchmark Index during the period can be attributed to the Fund being overweight in the biotechnology sub-industry as well as stock selection in the pharmaceuticals sub-industry.

For the fiscal year ended April 30, 2016, the health care equipment sub-industry contributed most significantly to the Fund’s return, followed by the health care services and health care supplies sub-industries, respectively. The biotechnology sub-industry detracted most significantly from the Fund’s return, followed by the pharmaceuticals and life sciences tools & services sub-industries, respectively.

Positions that contributed most significantly to the Fund’s return included Amedisys, Inc., a health care services company (portfolio average weight of 1.45%), and West Pharmaceutical Services, Inc., a health care supplies company (portfolio average weight of 2.28%). Positions that detracted most significantly from the Fund’s return included Anacor Pharmaceuticals, Inc., a biotechnology company (no longer held at fiscal year-end), and Alkermes PLC, a biotechnology company (no longer held at fiscal year-end).

19

PowerShares DWA Healthcare Momentum Portfolio (PTH) (continued)

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2016
Health Care Equipment	27.2
Biotechnology	17.2
Life Sciences Tools & Services	13.0
Health Care Supplies	12.7
Managed Health Care	9.7
Health Care Facilities	8.4
Pharmaceuticals	8.1
Health Care Services	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, 2016
Security
Cooper Cos., Inc. (The)	4.4
Becton, Dickinson and Co.	4.2
Boston Scientific Corp.	4.2
Ligand Pharmaceuticals, Inc.	4.0
UnitedHealth Group, Inc.	3.9
Amedisys, Inc.	3.8
West Pharmaceutical Services, Inc.	3.7
HCA Holdings, Inc.	3.6
BioMarin Pharmaceutical, Inc.	3.6
Aetna, Inc.	3.6
Total	39.0

* Excluding money market fund holdings.

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

Fund Performance History as of April 30, 2016

	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 Leaders Index††		(22.56	)%		5.45	%		17.27	%		8.21	%		48.33	%		7.16	%		93.55	%
S&P 500® Health Care Index		(1.08	)		15.65			54.69			16.84			117.76			10.19			152.57
Fund
NAV Return		(23.18	)		4.69			14.75			7.43			43.10			6.37			80.40
Market Price Return		(23.18	)		4.73			14.87			7.40			42.87			6.37			80.28

20

PowerShares DWA Healthcare Momentum Portfolio (PTH) (continued)

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, 2017. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.75% 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 their respective 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 Blended-Dorsey Wright^® Healthcare Technical Leaders 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, 2016.

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 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 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, 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, 2016, on a market price basis, the Fund returned (3.26)%. On a net asset value (“NAV”) basis, the Fund returned (3.24)%. During the same time period, the Index returned (2.60)%. 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 4.15%. 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 recognition in the marketplace and its shared exposure to the industrials 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 building products sub-industry and most underweight in the industrial conglomerates sub-industry during the fiscal year ended April 30, 2016. The majority of the Fund’s underperformance relative to the Benchmark Index during the period can be attributed to stock selection in railroads and air freight & logistics sub-industries as well as being overweight in the software and IT services sub-industries.

For the fiscal year ended April 30, 2016, the building products sub-industry contributed most significantly to the Fund’s return, followed by the aerospace & defense and IT consulting & other services sub-industries, respectively. The railroads sub-industry detracted most significantly from the Fund’s return, followed by the oil & gas equipment & services and research & consulting services sub-industries, respectively.

Positions that contributed most significantly to the Fund’s return included Lockheed Martin Corp., an aerospace & defense company (portfolio average weight of 4.68%), and A.O. Smith Corp., a building products company (portfolio average weight of 3.00%). Positions that detracted most significantly from the Fund’s return included Nuverra Environmental Solutions, Inc., an oil & gas equipment & services company (no longer held at fiscal year-end), and CSX Corp., a railroads 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, 2016
Aerospace & Defense	20.4
Building Products	12.4
Industrial Conglomerates	11.3
IT Consulting & Other Services	6.9
Data Processing & Outsourced Services	5.6
Specialty Chemicals	5.4
Industrial Machinery	4.8
Electrical Components & Equipment	4.8
Construction Materials	4.6
Leisure Products	3.3
Diversified Support Services	3.2
Health Care Services	2.4
Construction & Engineering	2.0
Commercial Printing	1.8
Electronic Components	1.8
Trading Companies & Distributors	1.7
Agricultural & Farm Machinery	1.6
Application Software	1.5
Distributors	1.3
Internet Software & Services	1.2
Commodity Chemicals	1.1
Air Freight & Logistics	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, 2016
Security
TransDigm Group, Inc.	5.5
Sherwin-Williams Co. (The)	5.4
Lockheed Martin Corp.	4.9
AMETEK, Inc.	4.8
Roper Technologies, Inc.	4.4
A.O. Smith Corp.	4.0
Accenture PLC, Class A	3.6
Danaher Corp.	3.5
Raytheon Co.	2.6
Lennox International, Inc.	2.5
Total	41.2

* Excluding money market fund holdings.

23

PowerShares DWA Industrials Momentum Portfolio (PRN) (continued)

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

Fund Performance History as of April 30, 2016

	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 Leaders Index††		(2.60	)%		8.24	%		26.80	%		8.62	%		51.20	%		7.83	%		105.47	%
S&P 500® Industrials Index		4.15			13.25			45.25			10.36			63.68			7.11			92.77
Fund
NAV Return		(3.24	)		7.51			24.28			7.69			44.84			6.93			89.66
Market Price Return		(3.26	)		7.53			24.35			7.68			44.79			6.94			89.74

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, 2017. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.64% 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 their respective 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 Blended-Dorsey Wright^® Industrials Technical Leaders 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, 2016.

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 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 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, 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, 2016, on a market price basis, the Fund returned (10.41)%. On a net asset value (“NAV”) basis, the Fund returned (10.43)%. During the same time period, the Index returned (9.87)%. 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 and operating expenses that the Fund incurred during the period.

During this same time period, the S&P 500^® Information Technology Index (the “Benchmark Index”) returned (0.10)%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 70 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, 2016. The majority of the Fund’s underperformance relative to the Benchmark Index during the period can be attributed to stock selection in the telecommunication services and semiconductor & semiconductor equipment sub-industries and being overweight in the telecommunications services and health care technology sub-industries.

For the fiscal year ended April 30, 2016, the data processing & outsourced services sub-industry contributed most significantly to the Fund’s return, followed by the specialized real estate investment trust (“REIT”) and application software sub-industries, respectively. The semiconductor equipment sub-industry detracted most significantly from the Fund’s return, followed by the systems software and alternative carriers sub-industries, respectively.

Positions that contributed most significantly to the Fund’s return included Facebook, Inc. Class A, an internet software & services company (portfolio average weight of 3.56%), and Heartland Payment Systems, Inc., a data processing & outsourced services company (no longer held at fiscal year-end). Positions that detracted most significantly from the Fund’s return included SunEdison, Inc., a semiconductors & semiconductor equipment company (no longer held at fiscal year-end), and Straight Path Communications, Inc. Class B, an alternative carriers 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, 2016
Application Software	29.0
Semiconductors	13.3
Internet Software & Services	11.1
IT Consulting & Other Services	8.3
Specialized REITs	6.2
Alternative Carriers	5.9
Data Processing & Outsourced Services	5.8
Electronic Components	5.6
Communications Equipment	5.1
Technology Distributors	3.8
Technology Hardware, Storage & Peripherals	2.2
Systems Software	2.0
Integrated Telecommunication Services	1.7
Money Market Funds Plus Other Assets Less Liabilities	(0.0)

Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2016
Security
Amphenol Corp., Class A	5.6
Ellie Mae, Inc.	5.5
Ultimate Software Group, Inc. (The)	5.3
Facebook, Inc., Class A	4.5
Equinix, Inc. REIT	3.8
Computer Sciences Corp.	3.7
VeriSign, Inc.	3.7
Intuit, Inc.	3.6
Cadence Design Systems, Inc.	3.6
Adobe Systems, Inc.	3.4
Total	42.7

* Excluding money market fund holdings.

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

Fund Performance History as of April 30, 2016

	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 Leaders Index††		(9.87	)%		8.54	%		27.87	%		6.62	%		37.79	%		4.63	%		54.08	%
S&P 500® Information Technology Index		(0.10	)		14.54			50.29			11.86			75.11			8.89			125.62
Fund
NAV Return		(10.43	)		7.76			25.15			5.84			32.84			3.89			43.95
Market Price Return		(10.41	)		7.86			25.49			5.85			32.89			3.89			43.95

26

PowerShares DWA Technology Momentum Portfolio (PTF) (continued)

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, 2017. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.77% 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 their respective 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 Blended-Dorsey Wright^® Technology Technical Leaders 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, 2016.

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 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 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, 2016, on a market price basis, the Fund returned 14.81%. On a net asset value (“NAV”) basis, the Fund returned 14.86%. During the same time period, the Index returned 15.53%. 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^® Utilities Index (the “Benchmark Index”) returned 13.67%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 230 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 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, 2016. The majority of the Fund’s outperformance relative to the Benchmark Index during the period can be attributed to stock selection in the internet software & services sub-industry as well as being overweight in the oil & gas exploration sub-industry.

For the fiscal year ended April 30, 2016, the multi-utilities sub-industry contributed most significantly to the Fund’s return, followed by the electric utilities and gas utilities sub-industries, respectively. The oil & gas exploration & production sub-industry detracted most significantly from the Fund’s return, followed by the oil & gas storage & transportation and integrated telecommunication services sub-industries, respectively.

Positions that contributed most significantly to the Fund’s return included NiSource, Inc., a multi-utilities company (no longer held at fiscal year-end), and Atmos Energy Corp., a gas utilities company (portfolio average weight of 3.02%). Positions that detracted most significantly from the Fund’s return included EQT Corp., an oil & gas exploration & production company (no longer held at fiscal year-end), and Energen Corp., an oil & gas exploration & production 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, 2016
Electric Utilities	32.7
Multi-Utilities	31.8
Gas Utilities	14.7
Integrated Telecommunication Services	7.5
Water Utilities	6.5
Oil & Gas Storage & Transportation	3.6
Independent Power Producers & Energy Traders	3.2
Money Market Fund Plus Other Assets Less Liabilities	(0.0)
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2016
Security
American Water Works Co., Inc.	4.0
Duke Energy Corp.	4.0
Westar Energy, Inc.	3.8
Sempra Energy	3.7
WEC Energy Group, Inc.	3.7
SCANA Corp.	3.7
Atmos Energy Corp.	3.6
ONEOK, Inc.	3.6
DTE Energy Co.	3.6
CMS Energy Corp.	3.5
Total	37.2

* Excluding money market fund holdings.

29

PowerShares DWA Utilities Momentum Portfolio (PUI) (continued)

Growth of a $10,000 Investment

Fund Performance History as of April 30, 2016

	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® Utilities Technical Leaders Index†		15.53	%		11.75	%		39.54	%		11.72	%		74.08	%		8.22	%		120.37	%		8.62	%		138.61	%
S&P 500® Utilities Index		13.67			9.38			30.86			12.23			78.07			8.66			129.45			8.58			137.68
Fund
NAV Return		14.86			11.03			36.86			10.84			67.28			7.43			104.80			7.83			120.82
Market Price Return		14.81			11.05			36.97			10.81			67.05			7.43			104.75			7.83			120.92

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, 2017. 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 their respective 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.

^†  The Blended-Dorsey Wright^® Utilities Technical Leaders 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, 2016.

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

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 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 currently 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, 2016, on a market price basis, the Fund returned 5.79%. On a net asset value (“NAV”) basis, the Fund returned 5.81%. During the same time period, the Index returned 6.39%. 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 (0.41)%. The Benchmark Index is an unmanaged index weighted by modified market capitalization based on the average performance of approximately 110 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 during the fiscal year ended April 30, 2016. The majority of the Fund’s outperformance relative to the Benchmark Index during the period can be attributed to the Fund’s allocation to the technology hardware storage & peripherals sub-industry and to the internet retail sub-industry.

For the fiscal year ended April 30, 2016, the internet retail sub-industry contributed most significantly to the Fund’s return, followed by the specialized real estate investment trust (“REIT”) sub-industry. The internet software & services sub-industry was the only detracting sub-industry.

Positions that contributed most significantly to the Fund’s return included Amazon.com, Inc., a consumer discretionary company (portfolio average weight of 8.68%), and Facebook, Inc. Class A, an information technology company (portfolio average weight of 8.69%). Positions that detracted most significantly from the Fund’s return included Twitter, Inc., an information technology company (portfolio average weight of 3.18%), and JD.com, Inc. Sponsored ADR Class A, a consumer discretionary company (portfolio average weight of 4.02%).

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2016
Internet Software & Services	59.2
Internet Retail	36.0
Specialized REITs	4.1
Alternative Carriers	0.4
Casinos & Gaming	0.1
Application Software	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, 2016
Security
Amazon.com, Inc.	8.9
Baidu, Inc., Class A ADR	8.4
Facebook, Inc., Class A	8.2
Priceline Group, Inc. (The)	8.0
Alphabet, Inc., Class C	7.4
Yahoo!, Inc.	4.3
Equinix, Inc. REIT	4.1
eBay, Inc.	3.9
JD.Com, Inc., Class A ADR	3.7
Netflix, Inc.	3.6
Total	60.5

* Excluding money market fund holdings.

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

Fund Performance History as of April 30, 2016

	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		6.39	%		19.04	%		68.70	%		13.65	%		89.63	%		16.48	%		232.87	%
NASDAQ-100® Index		(0.41	)		16.06			56.33			13.98			92.34			12.04			145.04
Fund
NAV Return		5.81			18.39			65.94			13.09			84.97			15.87			219.39
Market Price Return		5.79			18.38			65.88			13.06			84.74			15.63			214.24

32

PowerShares NASDAQ Internet Portfolio (PNQI) (continued)

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 their respective 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.

33

Schedule of Investments^(a)

PowerShares DWA Basic Materials Momentum Portfolio (PYZ)

April 30, 2016

Number of Shares			Value
		Common Stocks—99.9%
		Aluminum—4.0%
	398,849	Century Aluminum Co.(b)	$	3,517,848
	33,856	Kaiser Aluminum Corp.		3,210,565
				6,728,413
		Commodity Chemicals—4.3%
	87,289	LyondellBasell Industries NV, Class A		7,216,182
		Diversified Chemicals—3.8%
	84,940	Eastman Chemical Co.		6,487,717
		Diversified Metals & Mining—4.0%
	34,730	Compass Minerals International, Inc.		2,603,361
	292,893	Freeport-McMoRan, Inc.		4,100,502
				6,703,863
		Fertilizers & Agricultural Chemicals—3.5%
	63,240	Monsanto Co.		5,924,323
		Forest Products—1.1%
	114,890	Louisiana-Pacific Corp.(b)		1,953,130
		Gold—5.0%
	152,635	Newmont Mining Corp.		5,337,646
	48,491	Royal Gold, Inc.		3,036,506
				8,374,152
		Industrial Gases—5.9%
	40,477	Air Products & Chemicals, Inc.		5,905,189
	34,410	Praxair, Inc.		4,041,799
				9,946,988
		Oil & Gas Equipment & Services—1.0%
	69,263	US Silica Holdings, Inc.		1,769,670
		Paper Packaging—6.3%
	73,107	Avery Dennison Corp.		5,308,299
	121,642	International Paper Co.		5,263,449
				10,571,748
		Paper Products—1.3%
	32,667	Neenah Paper, Inc.		2,126,295
		Precious Metals & Minerals—1.1%
	152,464	Stillwater Mining Co.(b)		1,860,061
		Silver—2.9%
	594,890	Coeur Mining, Inc.(b)		4,818,609
		Specialty Chemicals—41.2%
	58,273	Albemarle Corp.		3,855,342
	72,796	Ashland, Inc.		8,124,034
	24,247	Balchem Corp.		1,487,796
	57,174	Celanese Corp., Series A		4,042,202
	48,112	Chemtura Corp.(b)		1,339,919
	42,467	Ecolab, Inc.		4,882,856
	59,760	H.B. Fuller Co.		2,672,467
	45,069	Innospec, Inc.		2,179,537
	52,139	International Flavors & Fragrances, Inc.		6,229,046
	43,768	Minerals Technologies, Inc.		2,621,703
	9,363	NewMarket Corp.		3,801,940
	117,991	PolyOne Corp.		4,245,316
	63,052	PPG Industries, Inc.		6,960,310
	24,668	Quaker Chemical Corp.		2,196,932

Number of Shares			Value
		Common Stocks (continued)
		Specialty Chemicals (continued)
	69,317	RPM International, Inc.	$	3,502,588
	51,774	Sensient Technologies Corp.		3,481,801
	102,185	W.R. Grace & Co.(b)		7,835,546
				69,459,335
		Steel—14.5%
	639,413	AK Steel Holding Corp.(b)		2,992,453
	155,311	Allegheny Technologies, Inc.		2,537,782
	22,390	Reliance Steel & Aluminum Co.		1,656,188
	81,347	Schnitzer Steel Industries, Inc., Class A		1,677,375
	185,822	Steel Dynamics, Inc.		4,684,573
	307,279	SunCoke Energy, Inc.		2,283,083
	143,290	TimkenSteel Corp.		1,825,515
	193,756	United States Steel Corp.		3,702,677
	83,943	Worthington Industries, Inc.		3,168,848
				24,528,494
		Total Common Stocks (Cost $154,435,729)		168,468,980
		Money Market Fund—0.1%
	92,468	Invesco Premier Portfolio—Institutional Class, 0.39%(c) (Cost $92,468)		92,468
		Total Investments (Cost $154,528,197)—100.0%		168,561,448
		Other assets less liabilities—(0.0)%		(64,028	)
		Net Assets—100.0%	$	168,497,420

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. The rate shown is the 7-day SEC standardized yield as of April 30, 2016.

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, 2016

Number of Shares			Value
		Common Stocks—100.0%
		Airlines—11.5%
	44,536	Alaska Air Group, Inc.	$	3,136,671
	62,240	Delta Air Lines, Inc.		2,593,541
	77,277	Hawaiian Holdings, Inc.(b)		3,251,043
	36,509	United Continental Holdings, Inc.(b)		1,672,477
				10,653,732
		Apparel Retail—12.8%
	45,896	Foot Locker, Inc.		2,819,850
	38,084	L Brands, Inc.		2,981,597
	55,858	Ross Stores, Inc.		3,171,617
	38,432	TJX Cos., Inc. (The)		2,913,914
				11,886,978
		Apparel, Accessories & Luxury Goods—3.3%
	36,058	G-III Apparel Group Ltd.(b)		1,631,624
	83,927	Vera Bradley, Inc.(b)		1,472,080
				3,103,704
		Auto Parts & Equipment—6.9%
	22,719	Drew Industries, Inc.		1,472,873
	19,672	Lear Corp.		2,264,837
	33,989	Visteon Corp.		2,707,904
				6,445,614
		Automotive Retail—7.9%
	4,269	AutoZone, Inc.(b)		3,266,767
	15,555	O’Reilly Automotive, Inc.(b)		4,085,987
				7,352,754
		Cable & Satellite—3.1%
	13,733	Charter Communications, Inc., Class A(b)		2,914,692
		Casinos & Gaming—1.8%
	165,976	Scientific Games Corp., Class A(b)		1,646,482
		Consumer Electronics—1.7%
	23,965	Universal Electronics, Inc.(b)		1,591,516
		Distributors—2.0%
	22,638	Core-Mark Holding Co., Inc.		1,848,619
		Footwear—7.9%
	59,862	NIKE, Inc., Class B		3,528,266
	114,916	Skechers U.S.A., Inc., Class A(b)		3,797,974
				7,326,240
		Home Entertainment Software—5.1%
	48,511	Electronic Arts, Inc.(b)		3,000,406
	52,028	Take-Two Interactive Software, Inc.(b)		1,778,317
				4,778,723
		Home Improvement Retail—2.8%
	19,734	Home Depot, Inc. (The)		2,642,185
		Household Appliances—2.4%
	12,992	Whirlpool Corp.		2,262,427
		Hypermarkets & Super Centers—2.4%
	14,849	Costco Wholesale Corp.		2,199,582
		Internet Retail—1.9%
	44,030	Liberty Ventures, Series A(b)		1,761,200

Number of Shares			Value
		Common Stocks (continued)
		Leisure Facilities—4.1%
	35,305	Six Flags Entertainment Corp.	$	2,120,065
	12,738	Vail Resorts, Inc.		1,651,355
				3,771,420
		Movies & Entertainment—2.7%
	23,934	Walt Disney Co. (The)		2,471,425
		Restaurants—11.3%
	14,806	Cracker Barrel Old Country Store, Inc.		2,167,747
	28,466	Domino’s Pizza, Inc.		3,440,970
	29,592	Papa John’s International, Inc.		1,674,611
	77,005	Ruth’s Hospitality Group, Inc.		1,222,839
	57,664	Sonic Corp.		1,981,912
				10,488,079
		Specialty Stores—6.3%
	36,102	Tractor Supply Co.		3,417,415
	11,682	Ulta Salon, Cosmetics & Fragrance, Inc.(b)		2,433,127
				5,850,542
		Tires & Rubber—2.1%
	68,356	Goodyear Tire & Rubber Co. (The)		1,980,273
		Total Common Stocks (Cost $94,610,217)		92,976,187
		Money Market Fund—0.1%
	106,692	Invesco Premier Portfolio—Institutional Class, 0.39%(c) (Cost $106,692)		106,692
		Total Investments (Cost $94,716,909)—100.1%		93,082,879
		Other assets less liabilities—(0.1)%		(118,484	)
		Net Assets—100.0%	$	92,964,395

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. The rate shown is the 7-day SEC standardized yield as of April 30, 2016.

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, 2016

Number of Shares			Value
		Common Stocks—100.0%
		Agricultural Products—3.0%
	78,537	Ingredion, Inc.	$	9,038,823
		Brewers—2.0%
	63,830	Molson Coors Brewing Co., Class B		6,104,063
		Distillers & Vintners—7.6%
	88,365	Brown-Forman Corp., Class B		8,511,317
	89,777	Constellation Brands, Inc., Class A		14,010,598
				22,521,915
		Education Services—1.4%
	62,060	Bright Horizons Family Solutions, Inc.(b)		4,072,377
		Environmental & Facilities Services—1.6%
	178,913	Rollins, Inc.		4,807,392
		Food Distributors—0.9%
	93,337	SpartanNash Co.		2,585,435
		Health Care Services—2.6%
	29,497	Chemed Corp.		3,828,121
	76,119	Providence Service Corp. (The)(b)		3,793,771
				7,621,892
		Household Appliances—1.6%
	47,922	Helen of Troy Ltd.(b)		4,769,677
		Household Products—11.5%
	157,287	Church & Dwight Co., Inc.		14,580,505
	82,863	Colgate-Palmolive Co.		5,876,644
	43,852	Kimberly-Clark Corp.		5,489,832
	49,013	Spectrum Brands Holdings, Inc.		5,567,877
	27,297	WD-40 Co.		2,792,483
				34,307,341
		Industrial Machinery—5.5%
	59,401	Snap-on, Inc.		9,461,391
	62,083	Stanley Black & Decker, Inc.		6,948,330
				16,409,721
		Internet Software & Services—3.0%
	106,862	Stamps.com, Inc.(b)		8,801,154
		Packaged Foods & Meats—26.2%
	70,707	Calavo Growers, Inc.		4,042,319
	91,566	Cal-Maine Foods, Inc.		4,647,890
	221,502	Hormel Foods Corp.		8,538,902
	43,937	J & J Snack Foods Corp.		4,443,349
	51,041	JM Smucker Co. (The)		6,481,186
	66,040	John B. Sanfilippo & Son, Inc.		3,653,993
	89,142	Kellogg Co.		6,846,997
	121,635	McCormick & Co., Inc.		11,406,930
	267,201	Pilgrim’s Pride Corp.(b)		7,190,379
	88,710	Pinnacle Foods, Inc.		3,778,159
	95,279	Post Holdings, Inc., Class A(b)		6,844,844
	150,571	Tyson Foods, Inc., Class A		9,910,583
				77,785,531
		Personal Products—8.6%
	891,002	Avon Products, Inc.		4,196,619
	143,285	Coty, Inc., Class A		4,355,864
	109,372	Estee Lauder Cos., Inc. (The), Class A		10,485,494

Number of Shares			Value
		Common Stocks (continued)
		Personal Products (continued)
	112,711	Herbalife Ltd.(b)	$	6,531,603
				25,569,580
		Soft Drinks—8.2%
	104,571	Dr Pepper Snapple Group, Inc.		9,506,550
	102,784	Monster Beverage Corp.(b)		14,823,508
				24,330,058
		Specialized Consumer Services—5.9%
	179,509	ServiceMaster Global Holdings, Inc.(b)		6,878,785
	812,119	Weight Watchers International, Inc.(b)		10,516,941
				17,395,726
		Tobacco—10.4%
	256,991	Altria Group, Inc.		16,115,906
	298,545	Reynolds American, Inc.		14,807,832
				30,923,738
		Total Common Stocks (Cost $287,932,387)		297,044,423
		Money Market Fund—0.1%
	237,677	Invesco Premier Portfolio—Institutional Class, 0.39%(c) (Cost $237,677)		237,677
		Total Investments (Cost $288,170,064)—100.1%		297,282,100
		Other assets less liabilities—(0.1)%		(212,081	)
		Net Assets—100.0%	$	297,070,019

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. The rate shown is the 7-day SEC standardized yield as of April 30, 2016.

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, 2016

Number of Shares			Value
		Common Stocks—99.9%
		Coal & Consumable Fuels—3.7%
	303,482	CONSOL Energy, Inc.	$	4,567,404
		Integrated Oil & Gas—8.8%
	35,364	Chevron Corp.		3,613,494
	36,961	Exxon Mobil Corp.		3,267,352
	54,159	Occidental Petroleum Corp.		4,151,287
				11,032,133
		Oil & Gas Drilling—10.3%
	274,333	Atwood Oceanics, Inc.		2,650,057
	131,838	Diamond Offshore Drilling, Inc.		3,198,390
	52,952	Helmerich & Payne, Inc.		3,501,186
	181,052	Patterson-UTI Energy, Inc.		3,575,777
				12,925,410
		Oil & Gas Equipment & Services—7.5%
	41,099	Dril-Quip, Inc.(b)		2,664,037
	92,633	Halliburton Co.		3,826,669
	192,578	RPC, Inc.		2,911,780
				9,402,486
		Oil & Gas Exploration & Production—55.5%
	416,477	Bill Barrett Corp.(b)		3,315,157
	99,206	Carrizo Oil & Gas, Inc.(b)		3,508,916
	47,281	Concho Resources, Inc.(b)		5,492,634
	57,505	Diamondback Energy, Inc.(b)		4,978,783
	45,136	EOG Resources, Inc.		3,729,136
	99,874	Newfield Exploration Co.(b)		3,620,432
	411,029	Oasis Petroleum, Inc.(b)		3,982,871
	171,948	Parsley Energy, Inc., Class A(b)		4,027,022
	67,567	PDC Energy, Inc.(b)		4,242,532
	32,580	Pioneer Natural Resources Co.		5,411,538
	205,482	Rice Energy, Inc.(b)		3,556,893
	117,560	RSP Permian, Inc.(b)		3,598,512
	429,315	Sanchez Energy Corp.(b)		3,859,542
	192,598	SM Energy Co.		6,001,354
	452,945	Whiting Petroleum Corp.(b)		5,435,340
	497,054	WPX Energy, Inc.(b)		4,801,542
				69,562,204
		Oil & Gas Refining & Marketing—6.4%
	42,908	Phillips 66		3,523,176
	56,905	Tesoro Corp.		4,534,759
				8,057,935
		Oil & Gas Storage & Transportation—7.7%
	133,101	Cheniere Energy, Inc.(b)		5,174,967
	111,247	Targa Resources Corp.		4,501,054
				9,676,021
		Total Common Stocks (Cost $106,659,733)		125,223,593

Number of Shares			Value
		Money Market Fund—0.1%
	87,876	Invesco Premier Portfolio—Institutional Class, 0.39%(c) (Cost $87,876)	$	87,876
		Total Investments (Cost $106,747,609)—100.0%		125,311,469
		Other assets less liabilities—(0.0)%		(25,016	)
		Net Assets—100.0%	$	125,286,453

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. The rate shown is the 7-day SEC standardized yield as of April 30, 2016.

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, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests—99.9%
		Data Processing & Outsourced Services—4.4%
	6,591	MasterCard, Inc., Class A	$	639,261
	8,378	Visa, Inc., Class A		647,117
				1,286,378
		Diversified Banks—2.1%
	12,212	Wells Fargo & Co.		610,356
		Diversified REITs—3.6%
	19,776	Duke Realty Corp. REIT		432,501
	6,651	PS Business Parks, Inc. REIT		636,900
				1,069,401
		Industrial REITs—1.7%
	21,708	First Industrial Realty Trust, Inc. REIT		497,982
		Life & Health Insurance—3.9%
	31,125	CNO Financial Group, Inc.		571,766
	9,897	Torchmark Corp.		572,938
				1,144,704
		Multi-line Insurance—2.3%
	11,922	American International Group, Inc.		665,486
		Office REITs—1.7%
	10,559	Highwoods Properties, Inc. REIT		493,422
		Property & Casualty Insurance—11.5%
	10,498	Allstate Corp. (The)		682,895
	8,149	Axis Capital Holdings Ltd.		434,097
	4,554	Erie Indemnity Co., Class A		429,852
	1,061	Markel Corp.(b)		953,956
	27,166	XL Group PLC		889,143
				3,389,943
		Regional Banks—10.5%
	7,825	Eagle Bancorp, Inc.(b)		396,727
	10,327	Home BancShares, Inc.		443,958
	7,652	Pinnacle Financial Partners, Inc.		376,249
	4,423	Signature Bank(b)		609,622
	14,350	Webster Financial Corp.		525,784
	19,876	Western Alliance Bancorp(b)		727,064
				3,079,404
		Residential REITs—12.3%
	8,017	Camden Property Trust REIT		647,212
	10,238	Education Realty Trust, Inc. REIT		407,165
	8,476	Equity LifeStyle Properties, Inc. REIT		580,521
	7,606	Equity Residential REIT		517,741
	5,567	Mid-America Apartment Communities, Inc. REIT		532,818
	7,247	Post Properties, Inc. REIT		415,688
	7,866	Sun Communities, Inc. REIT		533,865
				3,635,010
		Retail REITs—28.2%
	8,155	Federal Realty Investment Trust REIT		1,240,213
	48,944	General Growth Properties, Inc. REIT		1,371,900
	12,801	Macerich Co. (The) REIT		973,900
	17,226	Realty Income Corp. REIT		1,019,779
	15,016	Regency Centers Corp. REIT		1,106,679
	6,451	Simon Property Group, Inc. REIT		1,297,748
	22,227	Tanger Factory Outlet Centers, Inc. REIT		779,723
	13,848	Weingarten Realty Investors REIT		511,268
				8,301,210

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Specialized Finance—5.0%
	6,653	MarketAxess Holdings, Inc.	$	816,722
	6,971	Moody’s Corp.		667,264
				1,483,986
		Specialized REITs—12.7%
	21,366	CubeSmart REIT		632,647
	6,562	EPR Properties REIT		432,305
	11,811	Extra Space Storage, Inc. REIT		1,003,344
	5,167	Public Storage REIT		1,264,933
	3,799	Sovran Self Storage, Inc. REIT		403,530
				3,736,759
		Total Common Stocks and Other Equity Interests (Cost $28,060,276)		29,394,041
		Money Market Fund—0.2%
	65,095	Invesco Premier Portfolio—Institutional Class, 0.39%(c) (Cost $65,095)		65,095
		Total Investments (Cost $28,125,371)—100.1%		29,459,136
		Other assets less liabilities—(0.1)%		(41,149	)
		Net Assets—100.0%	$	29,417,987

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. The rate shown is the 7-day SEC standardized yield as of April 30, 2016.

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, 2016

Number of Shares			Value
		Common Stocks—100.1%
		Biotechnology—17.2%
	32,147	BioMarin Pharmaceutical, Inc.(b)	$	2,722,208
	23,779	Celgene Corp.(b)		2,458,986
	54,695	Emergent BioSolutions, Inc.(b)		2,106,852
	24,677	Ligand Pharmaceuticals, Inc.(b)		2,982,709
	144,639	OPKO Health, Inc.(b)		1,554,869
	134,438	OvaScience, Inc.(b)		1,126,591
				12,952,215
		Health Care Equipment—27.2%
	19,478	Becton, Dickinson and Co.		3,141,022
	142,656	Boston Scientific Corp.(b)		3,127,019
	37,972	Cantel Medical Corp.		2,543,744
	34,050	Cynosure, Inc., Class A(b)		1,666,407
	36,691	Inogen, Inc.(b)		1,792,722
	24,879	Integra LifeSciences Holdings Corp.(b)		1,761,931
	4,021	Intuitive Surgical, Inc.(b)		2,518,594
	46,173	Masimo Corp.(b)		2,001,600
	32,105	Orthofix International NV(b)		1,404,915
	367,090	TransEnterix, Inc.(b)		550,635
				20,508,589
		Health Care Facilities—8.4%
	71,901	Ensign Group, Inc. (The)		1,622,086
	33,937	HCA Holdings, Inc.(b)		2,736,001
	40,511	Surgical Care Affiliates, Inc.(b)		1,958,707
				6,316,794
		Health Care Services—3.8%
	55,517	Amedisys, Inc.(b)		2,858,570
		Health Care Supplies—12.7%
	28,361	Align Technology, Inc.(b)		2,047,381
	21,877	Cooper Cos., Inc. (The)		3,348,931
	82,945	Spectranetics Corp. (The)(b)		1,410,065
	39,197	West Pharmaceutical Services, Inc.		2,790,826
				9,597,203
		Life Sciences Tools & Services—13.0%
	21,276	Charles River Laboratories International, Inc.(b)		1,686,549
	29,228	PAREXEL International Corp.(b)		1,785,831
	50,706	PRA Health Sciences, Inc.(b)		2,406,000
	32,449	Quintiles Transnational Holdings, Inc.(b)		2,241,252
	61,372	VWR Corp.(b)		1,634,950
				9,754,582
		Managed Health Care—9.7%
	24,062	Aetna, Inc.		2,701,441
	22,320	UnitedHealth Group, Inc.		2,939,097
	18,421	WellCare Health Plans, Inc.(b)		1,657,706
				7,298,244
		Pharmaceuticals—8.1%
	186,853	Chelsea Therapeutics International Ltd.(b)		14,948
	109,955	Innoviva, Inc.		1,356,845
	85,202	Omeros Corp.(b)		1,128,926
	34,876	Prestige Brands Holdings, Inc.(b)		1,980,259
	92,735	Supernus Pharmaceuticals, Inc.(b)		1,591,333
				6,072,311
		Total Common Stocks (Cost $73,116,734)		75,358,508

Number of Shares			Value
		Money Market Fund—0.1%
	106,423	Invesco Premier Portfolio—Institutional Class, 0.39%(c) (Cost $106,423)	$	106,423
		Total Investments (Cost $73,223,157)—100.2%		75,464,931
		Other assets less liabilities—(0.2)%		(133,167	)
		Net Assets—100.0%	$	75,331,764

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. The rate shown is the 7-day SEC standardized yield as of April 30, 2016.

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, 2016

Number of Shares			Value
		Common Stocks—99.9%
		Aerospace & Defense—20.4%
	7,898	HEICO Corp.	$	484,226
	7,799	Honeywell International, Inc.		891,192
	4,872	Huntington Ingalls Industries, Inc.		705,319
	9,136	Lockheed Martin Corp.		2,123,024
	4,933	Northrop Grumman Corp.		1,017,480
	9,022	Raytheon Co.		1,139,930
	10,424	TransDigm Group, Inc.(b)		2,375,317
				8,736,488
		Agricultural & Farm Machinery—1.6%
	8,235	Toro Co. (The)		711,916
		Air Freight & Logistics—0.8%
	26,195	Air Transport Services Group, Inc.(b)		369,088
		Application Software—1.5%
	5,879	Fair Isaac Corp.		627,348
		Building Products—12.4%
	22,045	A.O. Smith Corp.		1,702,315
	18,360	Fortune Brands Home & Security, Inc.		1,017,328
	8,015	Lennox International, Inc.		1,081,624
	34,165	Masco Corp.		1,049,207
	10,032	Patrick Industries, Inc.(b)		459,967
				5,310,441
		Commercial Printing—1.8%
	12,540	Deluxe Corp.		787,261
		Commodity Chemicals—1.1%
	10,748	Trinseo SA(b)		459,907
		Construction & Engineering—2.0%
	17,809	EMCOR Group, Inc.		863,380
		Construction Materials—4.6%
	12,900	Eagle Materials, Inc.		956,148
	16,195	US Concrete, Inc.(b)		1,000,203
				1,956,351
		Data Processing & Outsourced Services—5.6%
	18,470	Convergys Corp.		489,455
	13,009	CSG Systems International, Inc.		577,339
	10,351	Fiserv, Inc.(b)		1,011,500
	7,420	Syntel, Inc.(b)		315,573
				2,393,867
		Distributors—1.3%
	6,482	Pool Corp.		566,592
		Diversified Support Services—3.2%
	9,984	Cintas Corp.		896,363
	13,103	Healthcare Services Group, Inc.		495,949
				1,392,312
		Electrical Components & Equipment—4.8%
	42,490	AMETEK, Inc.		2,043,344
		Electronic Components—1.8%
	6,597	Littelfuse, Inc.		768,419
		Health Care Services—2.4%
	28,965	AMN Healthcare Services, Inc.(b)		1,028,547

Number of Shares			Value
		Common Stocks (continued)
		Industrial Conglomerates—11.3%
	5,630	3M Co.	$	942,350
	5,247	Carlisle Cos., Inc.		534,669
	15,335	Danaher Corp.		1,483,661
	10,631	Roper Technologies, Inc.		1,872,013
				4,832,693
		Industrial Machinery—4.8%
	9,578	IDEX Corp.		784,438
	8,810	Illinois Tool Works, Inc.		920,821
	6,622	John Bean Technologies Corp.		345,271
				2,050,530
		Internet Software & Services—1.2%
	5,991	Cimpress NV (Netherlands)(b)		526,429
		IT Consulting & Other Services—6.9%
	13,513	Accenture PLC, Class A		1,525,888
	19,757	Booz Allen Hamilton Holding Corp.		544,701
	10,349	Gartner, Inc.(b)		902,122
				2,972,711
		Leisure Products—3.3%
	42,814	Smith & Wesson Holding Corp.(b)		934,630
	7,340	Sturm Ruger & Co., Inc.		469,980
				1,404,610
		Specialty Chemicals—5.4%
	8,139	Sherwin-Williams Co. (The)		2,338,416
		Trading Companies & Distributors—1.7%
	5,311	Watsco, Inc.		714,170
		Total Common Stocks (Cost $40,828,881)		42,854,820
		Money Market Fund—0.2%
	67,058	Invesco Premier Portfolio—Institutional Class, 0.39%(c) (Cost $67,058)		67,058
		Total Investments (Cost $40,895,939)—100.1%		42,921,878
		Other assets less liabilities—(0.1)%		(45,594	)
		Net Assets—100.0%	$	42,876,284

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. The rate shown is the 7-day SEC standardized yield as of April 30, 2016.

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, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Alternative Carriers—5.9%
	129,267	Cogent Communications Group, Inc.	$	5,002,633
	111,660	Level 3 Communications, Inc.(b)		5,835,351
				10,837,984
		Application Software—29.0%
	65,457	Adobe Systems, Inc.(b)		6,167,358
	68,279	Blackbaud, Inc.		4,217,594
	282,377	Cadence Design Systems, Inc.(b)		6,548,323
	96,046	Ebix, Inc.		4,621,733
	120,323	Ellie Mae, Inc.(b)		10,059,003
	65,484	Intuit, Inc.		6,606,681
	136,679	Paycom Software, Inc.(b)		5,222,505
	48,788	Ultimate Software Group, Inc. (The)(b)		9,591,233
				53,034,430
		Communications Equipment—5.1%
	137,620	CommScope Holding, Inc.(b)		4,185,024
	63,534	Harris Corp.		5,083,356
				9,268,380
		Data Processing & Outsourced Services—5.8%
	61,919	Jack Henry & Associates, Inc.		5,017,296
	189,248	Sabre Corp.		5,478,730
				10,496,026
		Electronic Components—5.6%
	183,016	Amphenol Corp., Class A		10,217,783
		Integrated Telecommunication Services—1.7%
	43,181	Atlantic Tele-Network, Inc.		3,105,146
		Internet Software & Services—11.1%
	7,517	Alphabet, Inc., Class A(b)		5,321,134
	69,733	Facebook, Inc., Class A(b)		8,199,206
	77,735	VeriSign, Inc.(b)(c)		6,716,304
				20,236,644
		IT Consulting & Other Services—8.3%
	37,031	CACI International, Inc., Class A(b)		3,560,531
	82,784	Cognizant Technology Solutions Corp., Class A(b)		4,832,102
	206,430	Computer Sciences Corp.		6,839,026
				15,231,659
		Semiconductors—13.3%
	169,153	Cirrus Logic, Inc.(b)		6,106,423
	75,951	First Solar, Inc.(b)		4,241,104
	253,546	MaxLinear, Inc., Class A(b)		4,246,896
	86,996	Monolithic Power Systems, Inc.		5,430,290
	357,554	NeoPhotonics Corp.(b)		4,287,072
				24,311,785
		Specialized REITs—6.2%
	100,947	CyrusOne, Inc. REIT		4,454,791
	21,023	Equinix, Inc. REIT		6,944,948
				11,399,739
		Systems Software—2.0%
	187,291	Rubicon Project, Inc. (The)(b)		3,627,827

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Technology Distributors—3.8%
	96,458	CDW Corp.	$	3,713,633
	38,953	SYNNEX Corp.		3,216,349
				6,929,982
		Technology Hardware, Storage & Peripherals—2.2%
	104,078	Cray, Inc.(b)		3,941,434
		Total Common Stocks and Other Equity Interests (Cost $180,373,586)		182,638,819
		Money Market Fund—0.1%
	191,350	Invesco Premier Portfolio—Institutional Class, 0.39%(d) (Cost $191,350)		191,350
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $180,564,936)—100.1%		182,830,169
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—0.0%
	18,250	Invesco Liquid Assets Portfolio—Institutional Class, 0.44%(d)(e) (Cost $18,250)		18,250
		Total Investments (Cost $180,583,186)—100.1%		182,848,419
		Other assets less liabilities—(0.1)%		(225,167	)
		Net Assets—100.0%	$	182,623,252

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, 2016.

^(d)  The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of April 30, 2016.

^(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 2H.

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, 2016

Number of Shares			Value
		Common Stocks—100.0%
		Electric Utilities—32.7%
	67,399	Alliant Energy Corp.	$	4,752,977
	95,578	American Electric Power Co., Inc.		6,069,203
	101,359	Duke Energy Corp.		7,985,062
	124,681	Eversource Energy		7,036,996
	67,966	IDACORP, Inc.		4,943,167
	74,966	MGE Energy, Inc.		3,737,055
	58,914	NextEra Energy, Inc.		6,927,108
	171,076	PNM Resources, Inc.		5,419,688
	113,104	Portland General Electric Co.		4,492,491
	146,996	Westar Energy, Inc.		7,586,464
	170,629	Xcel Energy, Inc.		6,830,279
				65,780,490
		Gas Utilities—14.7%
	101,199	Atmos Energy Corp.		7,341,988
	69,691	Chesapeake Utilities Corp.		4,148,008
	75,430	ONE Gas, Inc.		4,410,392
	66,581	Spire, Inc.		4,258,521
	115,626	UGI Corp.		4,652,790
	70,445	WGL Holdings, Inc.		4,782,511
				29,594,210
		Independent Power Producers & Energy Traders—3.2%
	430,267	NRG Energy, Inc.		6,497,032
		Integrated Telecommunication Services—7.5%
	174,943	Consolidated Communications Holdings, Inc.		4,135,652
	111,924	Verizon Communications, Inc.		5,701,409
	597,734	Windstream Holdings, Inc.		5,188,331
				15,025,392
		Multi-Utilities—31.8%
	113,616	Ameren Corp.		5,453,568
	82,500	Black Hills Corp.		4,998,675
	174,609	CMS Energy Corp.		7,103,094
	96,997	Dominion Resources, Inc.		6,932,375
	80,311	DTE Energy Co.		7,160,529
	84,943	NorthWestern Corp.		4,828,160
	107,834	SCANA Corp.		7,407,117
	72,459	Sempra Energy		7,488,638
	103,401	Vectren Corp.		5,051,139
	127,571	WEC Energy Group, Inc.		7,425,908
				63,849,203
		Oil & Gas Storage & Transportation—3.6%
	199,308	ONEOK, Inc.		7,204,984
		Water Utilities—6.5%
	110,266	American Water Works Co., Inc.		8,022,954
	157,645	Aqua America, Inc.		4,991,041
				13,013,995
		Total Common Stocks (Cost $191,955,883)		200,965,306

Number of Shares			Value
		Money Market Fund—0.0%
	80,685	Invesco Premier Portfolio—Institutional Class, 0.39%(b) (Cost $80,685)	$	80,685
		Total Investments (Cost $192,036,568)—100.0%		201,045,991
		Other assets less liabilities—(0.0)%		(92,875	)
		Net Assets—100.0%	$	200,953,116

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. The rate shown is the 7-day SEC standardized yield as of April 30, 2016.

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, 2016

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Alternative Carriers—0.4%
	28,264	Cogent Communications Group, Inc.	$	1,093,817
		Application Software—0.1%
	52,462	NQ Mobile, Inc., Class A ADR (China)(b)(c)		267,556
		Casinos & Gaming—0.1%
	17,445	500.com Ltd., Class A ADR (China)(b)(c)		327,791
		Internet Retail—36.0%
	21,708	1-800-FLOWERS.COM, Inc., Class A(c)		170,408
	37,837	Amazon.com, Inc.(c)		24,956,907
	7,211	Blue Nile, Inc.		185,900
	215,128	Ctrip.com International Ltd. ADR (China)(c)		9,381,732
	70,086	Etsy, Inc.(c)		615,355
	86,140	Expedia, Inc., Class A		9,972,428
	17,922	FTD Cos., Inc.(c)		498,411
	365,421	Groupon, Inc., Class A(b)(c)		1,322,824
	406,563	JD.Com, Inc., Class A ADR (China)(c)		10,391,750
	20,001	Lands’ End, Inc.(b)(c)		486,624
	44,984	Liberty TripAdvisor Holdings, Inc., Series A(c)		992,347
	26,376	MakeMyTrip Ltd. (India)(b)(c)		484,263
	111,902	Netflix, Inc.(c)		10,074,537
	18,389	Nutrisystem, Inc.		404,926
	15,776	Overstock.com, Inc.(c)		230,172
	12,708	PetMed Express, Inc.(b)		232,556
	16,523	Priceline Group, Inc. (The)(c)		22,201,294
	40,938	Qunar Cayman Islands Ltd., Class B ADR (China)(b)(c)		1,670,680
	21,791	Shutterfly, Inc.(c)		1,001,950
	82,817	TripAdvisor, Inc., Class A(c)		5,349,150
				100,624,214
		Internet Software & Services—59.2%
	34,299	21Vianet Group, Inc., Class A ADR (China)(c)		691,982
	25,507	Actua Corp.(c)		241,806
	110,502	Akamai Technologies, Inc.(c)		5,634,497
	28,498	Alarm.com Holdings, Inc.(b)(c)		650,039
	29,960	Alphabet, Inc., Class C(c)		20,762,580
	36,584	Angie’s List, Inc.(b)(c)		320,110
	6,564	Autobytel, Inc.(c)		108,962
	28,347	Autohome, Inc., Class A ADR (China)(b)(c)		837,937
	120,548	Baidu, Inc., Class A ADR (China)(c)		23,422,476
	62,131	Bankrate, Inc.(c)		567,877
	50,843	Bazaarvoice, Inc.(c)		170,324
	18,260	Benefitfocus, Inc.(b)(c)		692,054
	25,763	Blucora, Inc.(c)		206,362
	17,039	Carbonite, Inc.(c)		128,474
	19,594	Cimpress NV (Netherlands)(c)		1,721,725
	35,813	comScore, Inc.(c)		1,096,594
	34,257	Cornerstone OnDemand, Inc.(c)		1,176,728
	20,327	CoStar Group, Inc.(c)		4,010,720
	36,117	Criteo SA ADR (France)(c)		1,505,718
	23,578	Demandware, Inc.(c)		1,086,474
	32,485	DHI Group, Inc.(c)		230,968
	64,963	EarthLink Holdings Corp.		377,435
	439,191	eBay, Inc.(c)		10,729,436
	85,951	Endurance International Group Holdings, Inc.(b)(c)		920,535

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Internet Software & Services (continued)
	26,263	Envestnet, Inc.(c)	$	824,133
	195,525	Facebook, Inc., Class A(c)		22,989,830
	31,575	Five9, Inc.(c)		292,069
	48,593	GoDaddy, Inc., Class A(c)		1,475,769
	53,713	Gogo, Inc.(b)(c)		568,821
	35,396	Hortonworks, Inc.(b)(c)		409,532
	48,312	IAC/InterActiveCorp.		2,238,778
	30,427	j2 Global, Inc.		1,932,723
	35,829	LivePerson, Inc.(c)		216,766
	15,692	LogMeIn, Inc.(c)		936,812
	27,072	Marketo, Inc.(c)		595,313
	23,966	Match Group, Inc., Class A(b)(c)		273,212
	27,607	MercadoLibre, Inc. (Argentina)		3,447,838
	33,810	Mimecast Ltd.(b)(c)		268,790
	28,992	Momo, Inc., Class A ADR (China)(b)(c)		476,629
	47,163	NetEase, Inc. ADR (China)		6,635,834
	30,976	New Relic, Inc.(b)(c)		798,561
	41,045	NIC, Inc.		726,907
	142,354	Pandora Media, Inc.(b)(c)		1,413,575
	81,896	Rackspace Hosting, Inc.(c)		1,872,962
	30,954	RetailMeNot, Inc.(c)		260,942
	17,412	SciQuest, Inc.(c)		240,634
	22,059	Shutterstock, Inc.(b)(c)		904,860
	36,468	SINA Corp. (China)(c)		1,826,682
	24,174	Sohu.com, Inc. (China)(c)		1,086,138
	10,530	SPS Commerce, Inc.(c)		536,293
	10,449	Stamps.com, Inc.(b)(c)		860,580
	51,695	TrueCar, Inc.(b)(c)		353,594
	436,216	Twitter, Inc.(c)		6,377,478
	68,439	VeriSign, Inc.(b)(c)		5,913,130
	31,405	Web.com Group, Inc.(c)		627,786
	23,767	WebMD Health Corp.(c)		1,491,142
	29,541	Weibo Corp., Class A ADR (China)(b)(c)		722,868
	24,817	Wix.com Ltd. (Israel)(b)(c)		613,476
	328,806	Yahoo!, Inc.(c)		12,034,300
	169,651	Yandex NV, Class A (Russia)(c)		3,472,756
	23,652	YY, Inc., Class A ADR (China)(c)		1,485,819
	33,336	Zillow Group, Inc., Class A(b)(c)		834,067
				165,329,212
		Specialized REITs—4.1%
	34,419	Equinix, Inc. REIT		11,370,317
		Wireless Telecommunication Services—0.1%
	23,246	Boingo Wireless, Inc.(c)		178,762
		Total Common Stocks and Other Equity Interests (Cost $276,099,394)		279,191,669

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

43

PowerShares NASDAQ Internet Portfolio (PNQI) (continued)

April 30, 2016

Number of Shares			Value
		Money Market Fund—0.0%
	73,510	Invesco Premier Portfolio—Institutional Class, 0.39%(d) (Cost $73,510)	$	73,510
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $276,172,904)—100.0%		279,265,179
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—5.0%
	13,941,062	Invesco Liquid Assets Portfolio—Institutional Class, 0.44%(d)(e) (Cost $13,941,062)		13,941,062
		Total Investments (Cost $290,113,966)—105.0%		293,206,241
		Other assets less liabilities—(5.0)%		(14,054,220	)
		Net Assets—100.0%	$	279,152,021

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, 2016.

^(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. The rate shown is the 7-day SEC standardized yield as of April 30, 2016.

^(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 2H.

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

China 21.2 % 

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, 2016

	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)			PowerShares DWA Financial Momentum Portfolio (PFI)
Assets:
Unaffiliated investments, at value(a)	$	168,468,980		$	92,976,187		$	297,044,423		$	125,223,593		$	29,394,041
Affiliated investments, at value		92,468			106,692			237,677			87,876			65,095
Total investments, at value		168,561,448			93,082,879			297,282,100			125,311,469			29,459,136
Receivables:
Dividends		56,751			64,340			106,767			110,891			17,802
Investments sold		—			2,130,858			—			—			—
Securities lending		—			—			—			—			—
Other assets		3,334			3,333			3,333			3,339			3,333
Total Assets		168,621,533			95,281,410			297,392,200			125,425,699			29,480,271
Liabilities:
Due to custodian		2,754			—			—			—			—
Payables:
Shares repurchased		—			2,130,620			—			—			—
Collateral upon return of securities loaned		—			—			—			—			—
Investments purchased		—			—			—			—			—
Accrued advisory fees		49,448			29,789			91,749			29,547			3,965
Accrued trustees’ and officer’s fees		17,698			16,349			17,192			20,414			15,420
Accrued expenses		54,213			140,257			213,240			89,285			42,899
Total Liabilities		124,113			2,317,015			322,181			139,246			62,284
Net Assets	$	168,497,420		$	92,964,395		$	297,070,019		$	125,286,453		$	29,417,987
Net Assets Consist of:
Shares of beneficial interest	$	186,728,734		$	135,375,855		$	317,114,437		$	223,693,330		$	42,230,372
Undistributed net investment income (loss)		118,899			243,228			650,671			140,739			119,151
Undistributed net realized gain (loss)		(32,383,464	)		(41,020,658	)		(29,807,125	)		(117,111,476	)		(14,265,301	)
Net unrealized appreciation (depreciation)		14,033,251			(1,634,030	)		9,112,036			18,563,860			1,333,765
Net Assets	$	168,497,420		$	92,964,395		$	297,070,019		$	125,286,453		$	29,417,987
Shares outstanding (unlimited amount authorized, $0.01 par value)		3,100,000			2,200,000			5,300,000			3,300,000			1,000,000
Net asset value	$	54.35		$	42.26		$	56.05		$	37.97		$	29.42
Market price	$	54.38		$	42.25		$	56.05		$	37.95		$	29.43
Unaffiliated investments, at cost	$	154,435,729		$	94,610,217		$	287,932,387		$	106,659,733		$	28,060,276
Affiliated investments, at cost	$	92,468		$	106,692		$	237,677		$	87,876		$	65,095
Total investments, at cost	$	154,528,197		$	94,716,909		$	288,170,064		$	106,747,609		$	28,125,371
(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 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)
$	75,358,508		$	42,854,820		$	182,638,819		$	200,965,306		$	279,191,669
	106,423			67,058			209,600			80,685			14,014,572
	75,464,931			42,921,878			182,848,419			201,045,991			293,206,241
	4,739			32,969			36			375,193			15
	—			2,270,813			—			—			—
	218			—			2,566			—			22,756
	3,338			3,333			3,464			3,460			—
	75,473,226			45,228,993			182,854,485			201,424,644			293,229,012
	—			—			—			—			—
	—			2,271,953			—			—			—
	—			—			18,250			—			13,941,062
	—			—			—			290,453			—
	18,802			15,815			57,829			71,417			135,929
	19,473			18,019			16,975			16,480			—
	103,187			46,922			138,179			93,178			—
	141,462			2,352,709			231,233			471,528			14,076,991
$	75,331,764		$	42,876,284		$	182,623,252		$	200,953,116		$	279,152,021
$	176,105,134		$	106,115,200		$	246,731,649		$	206,690,078		$	294,346,432
	(194,516	)		43,628			(100,703	)		748,138			(305,621	)
	(102,820,628	)		(65,308,483	)		(66,272,927	)		(15,494,523	)		(17,981,065	)
	2,241,774			2,025,939			2,265,233			9,009,423			3,092,275
$	75,331,764		$	42,876,284		$	182,623,252		$	200,953,116		$	279,152,021
	1,700,000			950,000			5,050,000			8,000,000			3,650,000
$	44.31		$	45.13		$	36.16		$	25.12		$	76.48
$	44.28		$	45.13		$	36.16		$	25.10		$	76.44
$	73,116,734		$	40,828,881		$	180,373,586		$	191,955,883		$	276,099,394
$	106,423		$	67,058		$	209,600		$	80,685		$	14,014,572
$	73,223,157		$	40,895,939		$	180,583,186		$	192,036,568		$	290,113,966
$	—		$	—		$	17,280		$	—		$	13,502,145

47

Statements of Operations

For the year ended April 30, 2016

	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)			PowerShares DWA Financial Momentum Portfolio (PFI)
Investment Income:
Unaffiliated dividend income	$	1,229,967		$	1,832,764		$	3,321,088		$	2,486,933		$	617,227
Affiliated dividend income		128			281			324			271			21,034
Securities lending income		2,343			—			—			67,461			—
Foreign withholding tax		—			—			—			(1,569	)		—
Total Income		1,232,438			1,833,045			3,321,412			2,553,096			638,261
Expenses:
Advisory fees		348,688			925,666			1,218,498			662,794			161,433
Sub-licensing fees		39,903			272,420			346,685			220,726			18,914
Accounting & administration fees		34,829			40,270			51,002			33,761			34,843
Professional fees		29,799			29,297			26,674			36,341			29,450
Trustees’ and officer’s fees		8,868			10,801			11,250			10,211			8,306
Custodian & transfer agent fees		3,693			4,911			5,427			5,532			3,691
Other expenses		16,880			30,637			30,975			31,942			15,384
Total Expenses		482,660			1,314,002			1,690,511			1,001,307			272,021
Less: Waivers		(64,359	)		(203,454	)		(228,582	)		(199,640	)		(78,407	)
Net Expenses		418,301			1,110,548			1,461,929			801,667			193,614
Net Investment Income (Loss)		814,137			722,497			1,859,483			1,751,429			444,647
Realized and Unrealized Gain (Loss):
Net realized gain (loss) from:
Investment securities		(5,977,212	)		(29,432,392	)		(20,252,343	)		(50,910,143	)		(2,918,844	)
In-kind redemptions		2,387,494			10,092,059			23,169,463			3,478,311			1,592,378
Net realized gain (loss)		(3,589,718	)		(19,340,333	)		2,917,120			(47,431,832	)		(1,326,466	)
Net change in unrealized appreciation (depreciation) on investment securities		9,952,259			(8,257,723	)		2,304,927			5,917,263			(271,892	)
Net realized and unrealized gain (loss)		6,362,541			(27,598,056	)		5,222,047			(41,514,569	)		(1,598,358	)
Net increase (decrease) in net assets resulting from operations	$	7,176,678		$	(26,875,559	)	$	7,081,530		$	(39,763,140	)	$	(1,153,711	)

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

48

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)
$	204,387		$	993,897		$	861,241		$	2,194,477		$	786,985
	363			166			243			89			82
	24,179			—			83,066			518			179,636
	—			—			—			—			(7,068	)
	228,929			994,063			944,550			2,195,084			959,635
	986,115			460,439			835,456			328,168			1,469,560
	269,330			47,584			235,615			67,178			—
	43,090			35,547			38,919			35,618			—
	27,596			26,119			26,138			25,029			—
	11,976			9,765			10,370			8,230			—
	7,199			4,726			4,707			5,403			—
	30,804			18,211			23,143			14,851			—
	1,376,110			602,391			1,174,348			484,477			1,469,560
	(193,107	)		(50,019	)		(172,025	)		(90,759	)		(87	)
	1,183,003			552,372			1,002,323			393,718			1,469,473
	(954,074	)		441,691			(57,773	)		1,801,366			(509,838	)
	(48,671,598	)		(15,407,549	)		(33,801,003	)		(1,960,344	)		(7,241,009	)
	(10,142,862	)		9,325,147			7,554,182			6,614,636			21,043,433
	(58,814,460	)		(6,082,402	)		(26,246,821	)		4,654,292			13,802,424
	(13,159,154	)		(4,408,769	)		(4,839,493	)		6,605,206			(6,067,975	)
	(71,973,614	)		(10,491,171	)		(31,086,314	)		11,259,498			7,734,449
$	(72,927,688	)	$	(10,049,480	)	$	(31,144,087	)	$	13,060,864		$	7,224,611

49

Statements of Changes in Net Assets

For the years ended April 30, 2016 and 2015

	PowerShares DWA Basic Materials Momentum Portfolio (PYZ)						PowerShares DWA Consumer Cyclicals Momentum Portfolio (PEZ)
	2016			2015			2016			2015
Operations:
Net investment income	$	814,137		$	755,357		$	722,497		$	386,759
Net realized gain (loss)		(3,589,718	)		2,751,766			(19,340,333	)		(264,880	)
Net change in unrealized appreciation (depreciation)		9,952,259			(2,563,405	)		(8,257,723	)		8,042,533
Net increase (decrease) in net assets resulting from operations		7,176,678			943,718			(26,875,559	)		8,164,412
Distributions to Shareholders from:
Net investment income		(869,950	)		(881,072	)		(507,462	)		(352,829	)
Shareholder Transactions:
Proceeds from shares sold		118,077,520			64,480,821			242,968,038			74,536,962
Value of shares repurchased		(33,968,926	)		(80,651,397	)		(219,083,505	)		(31,639,305	)
Net increase (decrease) in net assets resulting from shares transactions		84,108,594			(16,170,576	)		23,884,533			42,897,657
Increase (Decrease) in Net Assets		90,415,322			(16,107,930	)		(3,498,488	)		50,709,240
Net Assets:
Beginning of year		78,082,098			94,190,028			96,462,883			45,753,643
End of year	$	168,497,420		$	78,082,098		$	92,964,395		$	96,462,883
Undistributed net investment income at end of year	$	118,899		$	174,712		$	243,228		$	28,193
Changes in Shares Outstanding:
Shares sold		2,350,000			1,150,000			5,250,000			1,650,000
Shares repurchased		(700,000	)		(1,500,000	)		(5,150,000	)		(700,000	)
Shares outstanding, beginning of year		1,450,000			1,800,000			2,100,000			1,150,000
Shares outstanding, end of year		3,100,000			1,450,000			2,200,000			2,100,000

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)
2016			2015			2016			2015			2016			2015
$	1,859,483		$	864,493		$	1,751,429		$	1,997,316		$	444,647		$	471,546
	2,917,120			(478,875	)		(47,431,832	)		(37,737,229	)		(1,326,466	)		2,137,855
	2,304,927			7,201,245			5,917,263			(11,115,391	)		(271,892	)		1,494,315
	7,081,530			7,586,863			(39,763,140	)		(46,855,304	)		(1,153,711	)		4,103,716
	(1,309,748	)		(932,548	)		(2,409,629	)		(2,298,949	)		(414,019	)		(460,625	)
	384,038,893			76,936,911			40,220,901			116,145,756			6,051,459			31,087,185
	(190,454,068	)		(24,616,231	)		(55,939,362	)		(98,254,563	)		(13,512,339	)		(32,450,739	)
	193,584,825			52,320,680			(15,718,461	)		17,891,193			(7,460,880	)		(1,363,554	)
	199,356,607			58,974,995			(57,891,230	)		(31,263,060	)		(9,028,610	)		2,279,537
	97,713,412			38,738,417			183,177,683			214,440,743			38,446,597			36,167,060
$	297,070,019		$	97,713,412		$	125,286,453		$	183,177,683		$	29,417,987		$	38,446,597
$	650,671		$	100,936		$	140,739		$	798,939		$	119,151		$	88,523
	6,850,000			1,500,000			1,100,000			1,950,000			200,000			1,000,000
	(3,450,000	)		(500,000	)		(1,500,000	)		(1,800,000	)		(450,000	)		(1,050,000	)
	1,900,000			900,000			3,700,000			3,550,000			1,250,000			1,300,000
	5,300,000			1,900,000			3,300,000			3,700,000			1,000,000			1,250,000

51

Statements of Changes in Net Assets (continued)

For the years ended April 30, 2016 and 2015

	PowerShares DWA Healthcare Momentum Portfolio (PTH)						PowerShares DWA Industrials Momentum Portfolio (PRN)
	2016			2015			2016			2015
Operations:
Net investment income (loss)	$	(954,074	)	$	(448,437	)	$	441,691		$	458,986
Net realized gain (loss)		(58,814,460	)		4,983,141			(6,082,402	)		(8,931,976	)
Net change in unrealized appreciation (depreciation)		(13,159,154	)		19,902,877			(4,408,769	)		8,773,867
Net increase (decrease) in net assets resulting from operations		(72,927,688	)		24,437,581			(10,049,480	)		300,877
Distributions to Shareholders from:
Net investment income		—			—			(525,854	)		(407,957	)
Shareholder Transactions:
Proceeds from shares sold		169,070,157			161,411,849			64,488,214			48,061,097
Value of shares repurchased		(199,613,152	)		(113,607,415	)		(123,450,417	)		(105,162,426	)
Net increase (decrease) in net assets resulting from shares transactions		(30,542,995	)		47,804,434			(58,962,203	)		(57,101,329	)
Increase (Decrease) in Net Assets		(103,470,683	)		72,242,015			(69,537,537	)		(57,208,409	)
Net Assets:
Beginning of year		178,802,447			106,560,432			112,413,821			169,622,230
End of year	$	75,331,764		$	178,802,447		$	42,876,284		$	112,413,821
Undistributed net investment income (loss) at end of year	$	(194,516	)	$	(267,356	)	$	43,628		$	127,791
Changes in Shares Outstanding:
Shares sold		2,800,000			2,900,000			1,400,000			1,000,000
Shares repurchased		(4,200,000	)		(2,150,000	)		(2,850,000	)		(2,250,000	)
Shares outstanding, beginning of year		3,100,000			2,350,000			2,400,000			3,650,000
Shares outstanding, end of year		1,700,000			3,100,000			950,000			2,400,000

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

52

PowerShares DWA Technology Momentum Portfolio (PTF)						PowerShares DWA Utilities Momentum Portfolio (PUI)						PowerShares NASDAQ Internet Portfolio (PNQI)
2016			2015			2016			2015			2016			2015
$	(57,773	)	$	281,613		$	1,801,366		$	1,020,174		$	(509,838	)	$	(877,964	)
	(26,246,821	)		3,128,715			4,654,292			2,356,747			13,802,424			23,157,779
	(4,839,493	)		10,043,793			6,605,206			(2,176,606	)		(6,067,975	)		20,785,790
	(31,144,087	)		13,454,121			13,060,864			1,200,315			7,224,611			43,065,605
	—			(406,069	)		(1,178,184	)		(982,578	)		—			—
	288,451,357			48,504,403			198,194,423			11,737,939			136,066,781			65,104,807
	(139,271,747	)		(50,489,939	)		(44,017,408	)		(18,663,468	)		(80,990,297	)		(180,947,163	)
	149,179,610			(1,985,536	)		154,177,015			(6,925,529	)		55,076,484			(115,842,356	)
	118,035,523			11,062,516			166,059,695			(6,707,792	)		62,301,095			(72,776,751	)
	64,587,729			53,525,213			34,893,421			41,601,213			216,850,926			289,627,677
	$182,623,252		$	64,587,729		$	200,953,116		$	34,893,421		$	279,152,021		$	216,850,926
$	(100,703	)	$	(45,530	)	$	748,138		$	124,956		$	(305,621	)	$	(305,444	)
	7,050,000			1,250,000			8,250,000			500,000			1,750,000			950,000
	(3,600,000	)		(1,300,000	)		(1,800,000	)		(800,000	)		(1,100,000	)		(2,650,000	)
	1,600,000			1,650,000			1,550,000			1,850,000			3,000,000			4,700,000
	5,050,000			1,600,000			8,000,000			1,550,000			3,650,000			3,000,000

53

Financial Highlights

PowerShares DWA Basic Materials Momentum Portfolio (PYZ)

	Year Ended April 30,
	2016			2015			2014			2013			2012
Per Share Operating Performance:
Net asset value at beginning of year	$	53.85		$	52.33		$	43.38		$	38.24		$	40.66
Net investment income(a)		0.58			0.43			0.51			0.63			0.47
Net realized and unrealized gain (loss) on investments		0.59			1.57			8.95			5.16			(2.46	)
Total from investment operations		1.17			2.00			9.46			5.79			(1.99	)
Distributions to shareholders from:
Net investment income		(0.67	)		(0.48	)		(0.51	)		(0.65	)		(0.43	)
Net asset value at end of year	$	54.35		$	53.85		$	52.33		$	43.38		$	38.24
Market price at end of year(b)	$	54.38		$	53.80		$	52.31		$	43.29		$	38.20
Net Asset Value Total Return(c)		2.32	%		3.82	%		21.97	%		15.37	%		(4.76	)%
Market Price Total Return(c)		2.47	%		3.77	%		22.18	%		15.26	%		(4.88	)%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	168,497		$	78,082		$	94,190		$	80,253		$	66,924
Ratio to average net assets of:
Expenses, after Waivers		0.60	%		0.60	%		0.64	%		0.65	%		0.65	%
Expenses, prior to Waivers		0.69	%		0.69	%		0.68	%		0.72	%		0.76	%
Net investment income, after Waivers		1.17	%		0.79	%		1.08	%		1.59	%		1.33	%
Portfolio turnover rate(d)		96	%		80	%		158	%		63	%		78	%

^(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 for periods less than one year, if applicable, 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,
	2016			2015			2014			2013			2012
Per Share Operating Performance:
Net asset value at beginning of year	$	45.93		$	39.79		$	34.19		$	29.90		$	27.54
Net investment income(a)		0.17			0.27			0.17			0.39			0.18
Net realized and unrealized gain (loss) on investments		(3.71	)		6.06			5.63			4.24			2.37
Total from investment operations		(3.54	)		6.33			5.80			4.63			2.55
Distributions to shareholders from:
Net investment income		(0.13	)		(0.19	)		(0.20	)		(0.34	)		(0.19	)
Net asset value at end of year	$	42.26		$	45.93		$	39.79		$	34.19		$	29.90
Market price at end of year(b)	$	42.25		$	45.93		$	39.74		$	34.16		$	29.89
Net Asset Value Total Return(c)		(7.73	)%		15.91	%		16.97	%		15.67	%		9.41	%
Market Price Total Return(c)		(7.76	)%		16.06	%		16.93	%		15.60	%		9.41	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	92,964		$	96,463		$	45,754		$	23,933		$	19,437
Ratio to average net assets of:
Expenses, after Waivers		0.60	%		0.60	%		0.64	%		0.65	%		0.65	%
Expenses, prior to Waivers		0.71	%		0.81	%		0.91	%		0.93	%		1.19	%
Net investment income, after Waivers		0.39	%		0.63	%		0.42	%		1.29	%		0.69	%
Portfolio turnover rate(d)		139	%		114	%		236	%		130	%		88	%

^(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 for periods less than one year, if applicable, 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,
	2016			2015			2014			2013			2012
Per Share Operating Performance:
Net asset value at beginning of year	$	51.43		$	43.04		$	39.69		$	32.61		$	31.36
Net investment income(a)		0.43			0.76	(b)		0.66			0.66			0.48
Net realized and unrealized gain on investments		4.54			8.37			3.26			7.13			1.22
Total from investment operations		4.97			9.13			3.92			7.79			1.70
Distributions to shareholders from:
Net investment income		(0.35	)		(0.74	)		(0.57	)		(0.71	)		(0.45	)
Net asset value at end of year	$	56.05		$	51.43		$	43.04		$	39.69		$	32.61
Market price at end of year(c)	$	56.05		$	51.43		$	43.03		$	39.67		$	32.60
Net Asset Value Total Return(d)		9.67	%		21.28	%		9.93	%		24.29	%		5.53	%
Market Price Total Return(d)		9.67	%		21.31	%		9.97	%		24.27	%		5.47	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	297,070		$	97,713		$	38,738		$	37,708		$	39,131
Ratio to average net assets of:
Expenses, after Waivers		0.60	%		0.60	%		0.64	%		0.65	%		0.65	%
Expenses, prior to Waivers		0.69	%		0.78	%		0.79	%		0.82	%		0.89	%
Net investment income, after Waivers		0.76	%		1.54	%(b)		1.56	%		1.94	%		1.54	%
Portfolio turnover rate(e)		113	%		83	%		175	%		57	%		35	%

^(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 for periods less than one year, if applicable, 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,
	2016			2015			2014			2013			2012
Per Share Operating Performance:
Net asset value at beginning of year	$	49.51		$	60.41		$	48.39		$	40.45		$	44.63
Net investment income(a)		0.51			0.53			0.34			0.47			0.21
Net realized and unrealized gain (loss) on investments		(11.39	)		(10.82	)		12.01			8.13			(4.15	)
Total from investment operations		(10.88	)		(10.29	)		12.35			8.60			(3.94	)
Distributions to shareholders from:
Net investment income		(0.66	)		(0.61	)		(0.33	)		(0.66	)		(0.24	)
Net asset value at end of year	$	37.97		$	49.51		$	60.41		$	48.39		$	40.45
Market price at end of year(b)	$	37.95		$	49.51		$	60.37		$	48.36		$	40.47
Net Asset Value Total Return(c)		(22.01	)%		(17.08	)%		25.66	%		21.48	%		(8.79	)%
Market Price Total Return(c)		(22.05	)%		(17.02	)%		25.66	%		21.35	%		(8.78	)%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	125,286		$	183,178		$	214,441		$	137,916		$	141,562
Ratio to average net assets of:
Expenses, after Waivers		0.60	%		0.60	%		0.64	%		0.66	%		0.65	%
Expenses, prior to Waivers		0.76	%		0.74	%		0.64	%		0.69	%		0.66	%
Net investment income, after Waivers		1.32	%		0.97	%		0.65	%		1.10	%		0.54	%
Portfolio turnover rate(d)		119	%		109	%		198	%		80	%		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 for periods less than one year, if applicable, 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,
	2016			2015			2014			2013			2012
Per Share Operating Performance:
Net asset value at beginning of year	$	30.76		$	27.82		$	23.92		$	20.08		$	20.45
Net investment income(a)		0.42			0.37			0.32			0.35			0.25
Net realized and unrealized gain (loss) on investments		(1.37	)		2.92			3.93			3.83			(0.42	)
Total from investment operations		(0.95	)		3.29			4.25			4.18			(0.17	)
Distributions to shareholders from:
Net investment income		(0.39	)		(0.35	)		(0.35	)		(0.34	)		(0.20	)
Net asset value at end of year	$	29.42		$	30.76		$	27.82		$	23.92		$	20.08
Market price at end of year(b)	$	29.43		$	30.76		$	27.79		$	23.90		$	20.07
Net Asset Value Total Return(c)		(3.11	)%		11.84	%		17.89	%		21.07	%		(0.66	)%
Market Price Total Return(c)		(3.08	)%		11.96	%		17.86	%		21.03	%		(0.66	)%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	29,418		$	38,447		$	36,167		$	20,330		$	18,071
Ratio to average net assets of:
Expenses, after Waivers		0.60	%		0.60	%(d)		0.64	%(d)		0.66	%(d)		0.65	%(d)
Expenses, prior to Waivers		0.84	%		0.85	%(d)		0.91	%(d)		1.10	%(d)		1.21	%(d)
Net investment income, after Waivers		1.38	%		1.24	%		1.20	%		1.66	%		1.33	%
Portfolio turnover rate(e)		119	%		115	%		232	%		118	%		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)  In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the investment companies in which the Fund invests. Estimated investment companies’ expenses are not expenses that are incurred directly by the Fund. They are expenses that are incurred directly by the investment companies and are deducted from the value of the investment companies 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 for periods less than one year, if applicable, 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,
	2016			2015			2014			2013			2012
Per Share Operating Performance:
Net asset value at beginning of year	$	57.68		$	45.34		$	38.76		$	32.29		$	31.41
Net investment income (loss)(a)		(0.27	)		(0.20	)		0.00	(b)		0.43			0.02
Net realized and unrealized gain (loss) on investments		(13.10	)		12.54			6.73			6.39			0.86
Total from investment operations		(13.37	)		12.34			6.73			6.82			0.88
Distributions to shareholders from:
Net investment income		—			—			(0.15	)		(0.35	)		—
Net asset value at end of year	$	44.31		$	57.68		$	45.34		$	38.76		$	32.29
Market price at end of year(c)	$	44.28		$	57.64		$	45.34		$	38.69		$	32.30
Net Asset Value Total Return(d)		(23.18	)%		27.22	%		17.41	%		21.31	%		2.80	%
Market Price Total Return(d)		(23.18	)%		27.13	%		17.62	%		21.06	%		2.74	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	75,332		$	178,802		$	106,560		$	60,071		$	37,134
Ratio to average net assets of:
Expenses, after Waivers		0.60	%		0.60	%		0.64	%		0.65	%		0.65	%
Expenses, prior to Waivers		0.70	%		0.68	%		0.68	%		0.74	%		0.82	%
Net investment income (loss), after Waivers		(0.48	)%		(0.38	)%		0.01	%		1.26	%		0.05	%
Portfolio turnover rate(e)		200	%		151	%		278	%		93	%		99	%

^(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 for periods less than one year, if applicable, 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,
	2016			2015			2014			2013			2012
Per Share Operating Performance:
Net asset value at beginning of year	$	46.84		$	46.47		$	36.74		$	30.02		$	32.47
Net investment income(a)		0.22			0.17			0.19			0.52			0.22
Net realized and unrealized gain (loss) on investments		(1.73	)		0.35			9.72			6.89			(2.48	)
Total from investment operations		(1.51	)		0.52			9.91			7.41			(2.26	)
Distributions to shareholders from:
Net investment income		(0.20	)		(0.15	)		(0.18	)		(0.65	)		(0.19	)
Return of capital		—			—			—			(0.04	)		—
Total distributions		(0.20	)		(0.15	)		(0.18	)		(0.69	)		(0.19	)
Net asset value at end of year	$	45.13		$	46.84		$	46.47		$	36.74		$	30.02
Market price at end of year(b)	$	45.13		$	46.85		$	46.43		$	36.72		$	30.00
Net Asset Value Total Return(c)		(3.24	)%		1.12	%		27.01	%		25.18	%		(6.91	)%
Market Price Total Return(c)		(3.26	)%		1.23	%		26.97	%		25.19	%		(7.00	)%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	42,876		$	112,414		$	169,622		$	38,573		$	30,017
Ratio to average net assets of:
Expenses, after Waivers		0.60	%		0.60	%		0.63	%		0.65	%		0.65	%
Expenses, prior to Waivers		0.65	%		0.64	%		0.66	%		0.92	%		0.80	%
Net investment income, after Waivers		0.48	%		0.36	%		0.43	%		1.65	%		0.77	%
Portfolio turnover rate(d)		122	%		121	%		285	%		116	%		129	%

^(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 for periods less than one year, if applicable, 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,
	2016			2015			2014			2013			2012
Per Share Operating Performance:
Net asset value at beginning of year	$	40.37		$	32.44		$	29.14		$	27.29		$	27.66
Net investment income (loss)(a)		(0.01	)		0.17			0.04			0.17			0.01
Net realized and unrealized gain (loss) on investments		(4.20	)		8.02			3.32			1.88			(0.38	)
Total from investment operations		(4.21	)		8.19			3.36			2.05			(0.37	)
Distributions to shareholders from:
Net investment income		—			(0.26	)		(0.06	)		(0.20	)		—
Net asset value at end of year	$	36.16		$	40.37		$	32.44		$	29.14		$	27.29
Market price at end of year(b)	$	36.16		$	40.36		$	32.45		$	29.06		$	27.28
Net Asset Value Total Return(c)		(10.43	)%		25.29	%		11.52	%		7.59	%		(1.34	)%
Market Price Total Return(c)		(10.41	)%		25.22	%		11.86	%		7.34	%		(1.34	)%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	182,623		$	64,588		$	53,525		$	32,053		$	31,387
Ratio to average net assets of:
Expenses, after Waivers		0.60	%		0.60	%		0.64	%		0.65	%		0.65	%
Expenses, prior to Waivers		0.70	%		0.77	%		0.80	%		0.89	%		0.94	%
Net investment income (loss), after Waivers		(0.03	)%		0.46	%		0.13	%		0.63	%		0.03	%
Portfolio turnover rate(d)		159	%		157	%		263	%		95	%		108	%

^(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 for periods less than one year, if applicable, 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,
	2016			2015			2014			2013			2012
Per Share Operating Performance:
Net asset value at beginning of year	$	22.51		$	22.49		$	19.82		$	16.69		$	17.12
Net investment income(a)		0.64			0.57			0.47			0.45			0.41
Net realized and unrealized gain (loss) on investments		2.60			(0.01	)		2.68			3.14			(0.38	)
Total from investment operations		3.24			0.56			3.15			3.59			0.03
Distributions to shareholders from:
Net investment income		(0.63	)		(0.54	)		(0.48	)		(0.46	)		(0.46	)
Net asset value at end of year	$	25.12		$	22.51		$	22.49		$	19.82		$	16.69
Market price at end of year(b)	$	25.10		$	22.50		$	22.47		$	19.79		$	16.66
Net Asset Value Total Return(c)		14.86	%		2.48	%		16.27	%		21.90	%		0.26	%
Market Price Total Return(c)		14.81	%		2.53	%		16.35	%		21.94	%		0.02	%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	200,953		$	34,893		$	41,601		$	42,604		$	43,393
Ratio to average net assets of:
Expenses, after Waivers		0.60	%		0.60	%		0.63	%		0.63	%		0.63	%
Expenses, prior to Waivers		0.74	%		0.80	%		0.77	%		0.81	%		0.77	%
Net investment income, after Waivers		2.74	%		2.49	%		2.31	%		2.54	%		2.45	%
Portfolio turnover rate(d)		91	%		47	%		131	%		48	%		71	%

^(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 for periods less than one year, if applicable, 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.

58

Financial Highlights (continued)

PowerShares NASDAQ Internet Portfolio (PNQI)

	Year Ended April 30,
	2016			2015			2014			2013			2012
Per Share Operating Performance:
Net asset value at beginning of year	$	72.28		$	61.62		$	46.09		$	41.08		$	41.37
Net investment income (loss)(a)		(0.16	)		(0.21	)		(0.27	)		(0.01	)		(0.08	)
Net realized and unrealized gain (loss) on investments		4.36			10.87			15.80			5.04			(0.21	)
Total from investment operations		4.20			10.66			15.53			5.03			(0.29	)
Distributions to shareholders from:
Net investment income		—			—			—			(0.02	)		—
Net asset value at end of year	$	76.48		$	72.28		$	61.62		$	46.09		$	41.08
Market price at end of year(b)	$	76.44		$	72.26		$	61.51		$	46.08		$	41.08
Net Asset Value Total Return(c)		5.81	%		17.30	%		33.70	%		12.26	%		(0.70	)%
Market Price Total Return(c)		5.79	%		17.48	%		33.48	%		12.23	%		(0.77	)%
Ratios/Supplemental Data:
Net assets at end of year (000’s omitted)	$	279,152		$	216,851		$	289,628		$	64,525		$	63,678
Ratio to average net assets of:
Expenses		0.60	%		0.60	%		0.60	%		0.60	%		0.60	%
Net investment income (loss)		(0.21	)%		(0.31	)%		(0.42	)%		(0.02	)%		(0.22	)%
Portfolio turnover rate(d)		27	%		31	%		21	%		20	%		23	%

^(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 for periods less than one year, if applicable, 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

Notes to Financial Statements

PowerShares Exchange-Traded Fund Trust

April 30, 2016

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, 2016, 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 Leaders Index
DWA Consumer Cyclicals Momentum Portfolio	Dorsey Wright® Consumer Cyclicals Technical Leaders Index
DWA Consumer Staples Momentum Portfolio	Dorsey Wright® Consumer Staples Technical Leaders Index
DWA Energy Momentum Portfolio	Dorsey Wright® Energy Technical Leaders Index
DWA Financial Momentum Portfolio	Dorsey Wright® Financials Technical Leaders Index
DWA Healthcare Momentum Portfolio	Dorsey Wright® Healthcare Technical Leaders Index
DWA Industrials Momentum Portfolio	Dorsey Wright® Industrials Technical Leaders Index
DWA Technology Momentum Portfolio	Dorsey Wright® Technology Technical Leaders Index
DWA Utilities Momentum Portfolio	Dorsey Wright® Utilities Technical Leaders 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.

60

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 will 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.

The Funds may periodically participate in litigation related to each Fund’s investments. As such, the Funds may receive proceeds from litigation settlements. Any proceeds received are included in the Statements of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.

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

Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statements of Operations and the Statements of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of each Fund’s net asset value and, accordingly, they reduce each Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statements of Operations and the Statements of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between each Fund and the Adviser.

E. Country Determination

For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the Adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.

F. 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, acquired fund fees and expenses, if any, litigation expenses and other 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.

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G. 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.

H. Securities Lending

During the fiscal year ended April 30, 2016, DWA Basic Materials Momentum Portfolio, DWA Energy Momentum Portfolio, DWA Healthcare Momentum Portfolio, DWA Technology Momentum Portfolio, DWA Utilities 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 securities) 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 Schedules of Investments. Each Fund bears the risk of loss with respect to the investment of collateral. 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. When loaning securities, each Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to each 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. The securities loaned are subject to termination at the option of the borrower or each Fund. Upon termination, the borrower will return to each Fund the securities loaned and each Fund will return the collateral. 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. Each Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to each Fund. Some of these losses may be indemnified by the lending agent. Each 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 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, acquired fund fees and expenses, if any, litigation expenses and other extraordinary expenses.

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, 2017. 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, 2017. During its term, the Expense Agreement cannot be terminated or amended to increase the Expense Cap without approval of the Board of Trustees.

Further, through August 31, 2018, 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, 2016, the Adviser waived fees and/or paid Fund expenses for each Fund in the following amounts:

DWA Basic Materials Momentum Portfolio	$	64,359
DWA Consumer Cyclicals Momentum Portfolio		203,454
DWA Consumer Staples Momentum Portfolio		228,582
DWA Energy Momentum Portfolio		199,640
DWA Financial Momentum Portfolio		78,407
DWA Healthcare Momentum Portfolio		193,107
DWA Industrials Momentum Portfolio		50,019
DWA Technology Momentum Portfolio		172,025
DWA Utilities Momentum Portfolio		90,759
NASDAQ Internet Portfolio		87

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, 2016 are as follows:

	Total Potential Recapture Amounts		Potential Recapture Amounts Expiring
			4/30/17		4/30/18		4/30/19
DWA Basic Materials Momentum Portfolio	$	179,420	$	32,772	$	82,414	$	64,234
DWA Consumer Cyclicals Momentum Portfolio		402,883		72,285		127,393		203,205
DWA Consumer Staples Momentum Portfolio		388,939		58,654		101,972		228,313
DWA Energy Momentum Portfolio		489,376		—		290,036		199,340
DWA Financial Momentum Portfolio		242,360		69,854		94,203		78,303
DWA Healthcare Momentum Portfolio		319,702		38,353		88,576		192,773
DWA Industrials Momentum Portfolio		128,809		30,573		48,372		49,864
DWA Technology Momentum Portfolio		336,365		60,072		104,492		171,801
DWA Utilities Momentum Portfolio		227,744		53,817		83,252		90,675

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, LLC
DWA Consumer Cyclicals Momentum Portfolio	Dorsey Wright & Associates, LLC
DWA Consumer Staples Momentum Portfolio	Dorsey Wright & Associates, LLC
DWA Energy Momentum Portfolio	Dorsey Wright & Associates, LLC
DWA Financial Momentum Portfolio	Dorsey Wright & Associates, LLC
DWA Healthcare Momentum Portfolio	Dorsey Wright & Associates, LLC
DWA Industrials Momentum Portfolio	Dorsey Wright & Associates, LLC
DWA Technology Momentum Portfolio	Dorsey Wright & Associates, LLC
DWA Utilities Momentum Portfolio	Dorsey Wright & Associates, LLC
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.

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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, 2016.

DWA Financial Momentum Portfolio

	Value April 30, 2015		Purchases at Cost		Proceeds from Sales			Change in Unrealized Appreciation (Depreciation)			Realized Gain (Loss)			Value April 30, 2016		Dividend Income
Invesco Ltd.*	$	1,114,653	$	151,012	$	(1,067,391	)	$	(137,392	)	$	(60,882	)	$	—	$	20,926

* At April 30, 2016, this security was no longer held.

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, 2016, 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
DWA Healthcare Momentum Portfolio
Equity Securities	$	75,449,983	$	—	$	14,948	$	75,464,931

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, 2016 and 2015:

	2016		2015
	Ordinary Income		Ordinary Income
DWA Basic Materials Momentum Portfolio	$	869,950	$	881,072
DWA Consumer Cyclicals Momentum Portfolio		507,462		352,829
DWA Consumer Staples Momentum Portfolio		1,309,748		932,548
DWA Energy Momentum Portfolio		2,409,629		2,298,949
DWA Financial Momentum Portfolio		414,019		460,625
DWA Industrials Momentum Portfolio		525,854		407,957
DWA Technology Momentum Portfolio		—		406,069
DWA Utilities Momentum Portfolio		1,178,184		982,578

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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	$	135,562	$	(16,663	)	$	13,913,609		$	(30,559,651	)	$	(1,704,171	)	$	186,728,734	$	168,497,420
DWA Consumer Cyclicals Momentum Portfolio		258,457		(15,229	)		(1,722,133	)		(18,056,833	)		(22,875,722	)		135,375,855		92,964,395
DWA Consumer Staples Momentum Portfolio		666,753		(16,082	)		8,592,315			(12,374,655	)		(16,912,749	)		317,114,437		297,070,019
DWA Energy Momentum Portfolio		159,900		(19,161	)		18,353,845			(91,974,865	)		(24,926,596	)		223,693,330		125,286,453
DWA Financial Momentum Portfolio		133,680		(14,529	)		1,312,756			(12,264,300	)		(1,979,992	)		42,230,372		29,417,987
DWA Healthcare Momentum Portfolio**		—		(18,703	)		2,206,231			(75,777,891	)		(27,183,007	)		176,105,134		75,331,764
DWA Industrials Momentum Portfolio		60,696		(17,068	)		1,980,814			(63,482,749	)		(1,780,609	)		106,115,200		42,876,284
DWA Technology Momentum Portfolio**		—		(15,924	)		2,247,571			(39,768,409	)		(26,571,635	)		246,731,649		182,623,252
DWA Utilities Momentum Portfolio		763,759		(15,621	)		8,981,792			(14,801,838	)		(665,054	)		206,690,078		200,953,116
NASDAQ Internet Portfolio**		—		—			(1,114,049	)		(9,015,418	)		(5,064,944	)		294,346,432		279,152,021

* 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 $175,813, $84,779 and $262,542, and Post-October Capital Losses of $27,007,194, $26,486,856 and $4,802,402, 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.

The following table presents available capital loss carryforwards and expiration dates for each Fund as of April 30, 2016:

							Post-effective/no expiration
	2017		2018		2019		Short-Term		Long-Term		Total*		Expired
DWA Basic Materials Momentum Portfolio	$	3,783,798	$	4,534,904	$	2,521,492	$	18,863,599	$	855,858	$	30,559,651	$	205,528
DWA Consumer Cyclicals Momentum Portfolio		1,993,654		—		2,042,056		14,021,123		—		18,056,833		1,246,058
DWA Consumer Staples Momentum Portfolio		2,156,980		3,935,363		1,180,566		5,101,746		—		12,374,655		562,037
DWA Energy Momentum Portfolio		2,869,667		3,914,682		1,167,692		78,949,662		5,073,162		91,974,865		880,885
DWA Financial Momentum Portfolio		1,821,971		4,413,894		1,979,006		4,049,429		—		12,264,300		614,940
DWA Healthcare Momentum Portfolio		17,890,879		18,737,951		2,739,963		36,409,098		—		75,777,891		2,234,184
DWA Industrials Momentum Portfolio		6,525,387		21,245,288		2,746,746		32,845,118		120,210		63,482,749		1,476,057
DWA Technology Momentum Portfolio		8,220,697		7,658,564		3,016,840		20,810,078		62,230		39,768,409		2,465,875
DWA Utilities Momentum Portfolio		1,366,073		5,885,935		874,386		5,215,594		1,459,850		14,801,838		2,124,736
NASDAQ Internet Portfolio		—		3,360		74,863		4,699,286		4,237,909		9,015,418		—

* 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.

67

Note 7. Investment Transactions

For the fiscal year ended April 30, 2016, 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	$	69,620,791	$	69,740,262
DWA Consumer Cyclicals Momentum Portfolio		255,897,207		255,412,487
DWA Consumer Staples Momentum Portfolio		276,118,150		277,120,874
DWA Energy Momentum Portfolio		161,418,278		162,770,089
DWA Financial Momentum Portfolio		39,171,018		39,710,666
DWA Healthcare Momentum Portfolio		392,052,142		393,195,784
DWA Industrials Momentum Portfolio		113,568,307		113,173,877
DWA Technology Momentum Portfolio		262,933,680		260,710,833
DWA Utilities Momentum Portfolio		63,938,232		62,910,447
NASDAQ Internet Portfolio		67,518,183		68,424,742

For the fiscal year ended April 30, 2016, in-kind transactions associated with creations and redemptions were as follows:

	Cost of Securities Received		Value of Securities Delivered
DWA Basic Materials Momentum Portfolio	$	118,067,489	$	33,889,082
DWA Consumer Cyclicals Momentum Portfolio		242,962,077		219,342,270
DWA Consumer Staples Momentum Portfolio		383,991,296		188,857,216
DWA Energy Momentum Portfolio		40,199,452		55,217,368
DWA Financial Momentum Portfolio		6,043,764		12,838,420
DWA Healthcare Momentum Portfolio		168,281,574		198,702,927
DWA Industrials Momentum Portfolio		64,457,006		123,943,592
DWA Technology Momentum Portfolio		286,254,485		139,314,733
DWA Utilities Momentum Portfolio		198,136,172		44,276,839
NASDAQ Internet Portfolio		136,082,068		80,562,441

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

At April 30, 2016, 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
DWA Basic Materials Momentum Portfolio	$	14,478,029	$	(564,420	)	$	13,913,609		$	154,647,839
DWA Consumer Cyclicals Momentum Portfolio		3,083,387		(4,805,520	)		(1,722,133	)		94,805,012
DWA Consumer Staples Momentum Portfolio		15,000,321		(6,408,006	)		8,592,315			288,689,785
DWA Energy Momentum Portfolio		20,788,946		(2,435,101	)		18,353,845			106,957,624
DWA Financial Momentum Portfolio		1,861,103		(548,347	)		1,312,756			28,146,380
DWA Healthcare Momentum Portfolio		4,205,262		(1,999,031	)		2,206,231			73,258,700
DWA Industrials Momentum Portfolio		2,494,636		(513,822	)		1,980,814			40,941,064
DWA Technology Momentum Portfolio		7,904,836		(5,657,265	)		2,247,571			180,600,848
DWA Utilities Momentum Portfolio		10,282,600		(1,300,808	)		8,981,792			192,064,199
NASDAQ Internet Portfolio		31,583,068		(32,697,117	)		(1,114,049	)		294,320,290

68

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, 2016, 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, 2016, the reclassifications were as follows:

	Undistributed Net Investment Income (Loss)		Undistributed Net Realized Gain (Loss)			Shares of Beneficial Interest
DWA Basic Materials Momentum Portfolio	$	—	$	(2,009,029	)	$	2,009,029
DWA Consumer Cyclicals Momentum Portfolio		—		(8,708,123	)		8,708,123
DWA Consumer Staples Momentum Portfolio		—		(21,678,678	)		21,678,678
DWA Energy Momentum Portfolio		—		(2,218,398	)		2,218,398
DWA Financial Momentum Portfolio		—		(944,338	)		944,338
DWA Healthcare Momentum Portfolio		1,026,914		13,351,597			(14,378,511	)
DWA Industrials Momentum Portfolio		—		(7,649,970	)		7,649,970
DWA Technology Momentum Portfolio		2,600		(4,962,196	)		4,959,596
DWA Utilities Momentum Portfolio		—		(4,456,166	)		4,456,166
NASDAQ Internet Portfolio		509,661		(19,237,723	)		18,728,062

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 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.

69

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, 2016, 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, 2016 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 23, 2016

70

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, acquired fund fees and expenses, if any, litigation expenses and other extraordinary 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, 2016.

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, 2015		Ending Account Value April 30, 2016		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	$	1,083.85		0.60	%	$	3.11
Hypothetical (5% return before expenses)		1,000.00		1,021.88		0.60			3.02
PowerShares DWA Consumer Cyclicals Momentum Portfolio (PEZ)
Actual		1,000.00		907.74		0.60			2.85
Hypothetical (5% return before expenses)		1,000.00		1,021.88		0.60			3.02
PowerShares DWA Consumer Staples Momentum Portfolio (PSL)
Actual		1,000.00		990.91		0.60			2.97
Hypothetical (5% return before expenses)		1,000.00		1,021.88		0.60			3.02
PowerShares DWA Energy Momentum Portfolio (PXI)
Actual		1,000.00		966.15		0.60			2.93
Hypothetical (5% return before expenses)		1,000.00		1,021.88		0.60			3.02
PowerShares DWA Financial Momentum Portfolio (PFI)
Actual		1,000.00		955.53		0.60			2.92
Hypothetical (5% return before expenses)		1,000.00		1,021.88		0.60			3.02
PowerShares DWA Healthcare Momentum Portfolio (PTH)
Actual		1,000.00		806.09		0.60			2.69
Hypothetical (5% return before expenses)		1,000.00		1,021.88		0.60			3.02

71

Fees and Expenses (continued)

	Beginning Account Value November 1, 2015		Ending Account Value April 30, 2016		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During the Six-Month Period(1)
PowerShares DWA Industrials Momentum Portfolio (PRN)
Actual	$	1,000.00	$	998.37		0.60	%	$	2.98
Hypothetical (5% return before expenses)		1,000.00		1,021.88		0.60			3.02
PowerShares DWA Technology Momentum Portfolio (PTF)
Actual		1,000.00		876.19		0.60			2.80
Hypothetical (5% return before expenses)		1,000.00		1,021.88		0.60			3.02
PowerShares DWA Utilities Momentum Portfolio (PUI)
Actual		1,000.00		1,136.28		0.60			3.19
Hypothetical (5% return before expenses)		1,000.00		1,021.88		0.60			3.02
PowerShares NASDAQ Internet Portfolio (PNQI)
Actual		1,000.00		969.92		0.60			2.94
Hypothetical (5% return before expenses)		1,000.00		1,021.88		0.60			3.02

⁽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, 2016. Expenses are calculated by multiplying the Fund’s annualized expense ratio by the average account value for the period, then multiplying the result by 182/366. Expense ratios for the most recent six-month period may differ from expense ratios based on the annualized data in the Financial Highlights.

72

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, 2016:

	Qualified Dividend Income*			Dividends-Received Deduction*
PowerShares DWA Basic Materials Momentum Portfolio		100	%		100	%
PowerShares DWA Consumer Cyclicals Momentum Portfolio		100	%		100	%
PowerShares DWA Consumer Staples Momentum Portfolio		100	%		100	%
PowerShares DWA Energy Momentum Portfolio		100	%		100	%
PowerShares DWA Financial Momentum Portfolio		81	%		80	%
PowerShares DWA Healthcare Momentum Portfolio		0	%		0	%
PowerShares DWA Industrials Momentum Portfolio		100	%		100	%
PowerShares DWA Technology Momentum Portfolio		0	%		0	%
PowerShares DWA Utilities Momentum Portfolio		100	%		100	%
PowerShares NASDAQ Internet Portfolio		0	%		0	%

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

73

Trustees and Officers

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

The Trustees and officers information is current as of April 30, 2016.

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	Chairman of the Nominating and Governance Committee and Trustee	Chairman of the Nominating and Governance Committee and 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).	124	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 (2010-2016); 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.	124	None
Marc M. Kole—1960 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Chairman of the Audit Committee and Trustee	Chairman of the Audit Committee since 2008; and Trustee since 2006	Senior Director of Finance, By The Hand Club for Kids (2015-Present); 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).	124	None
Yung Bong Lim—1964 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	Chairman of the Investment Oversight Committee and Trustee	Chairman of the Investment Oversight Committee since 2014; Trustee since 2013	Managing Partner, Residential Dynamics Group LLC (2008-Present); formerly, Managing Director, Citadel Investment Group, L.L.C. (1999-2007).	124	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, 2016, the “Fund Family” consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 71 portfolios advised by the Adviser.

74

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
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).	124	None
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).	124	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 and Chief Executive Officer, Stone Pillar Advisors, Ltd. (2010-Present); formerly, Chairman, President and Chief Executive Officer, Community Financial Shares, Inc. and Community Bank—Wheaton/Glen Ellyn (subsidiary) (2013-2015); 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).	124	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, 2016, the “Fund Family” consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 71 portfolios advised by the Adviser.

75

Trustees and Officers (continued)

The Non-Independent Trustees and the executive officers of the Trust, their term of office and length of time served, their principal business occupations during 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 Trustees are shown below.

Name, Address and Year of Birth of Non-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 Non-Independent Trustee	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. (2007-Present); Director, Invesco Advisers, Inc. (2009-Present); Director, Invesco Finance PLC, 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., IVZ, Inc. and Invesco Asset Management (Bermuda) Ltd.; Manager, Horizon Flight Works LLC; Director and Secretary, IVZ Bahamas Private Limited; formerly, Director, INVESCO Funds Group, Inc., 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.	124	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, 2016, the Fund Complex consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 71 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
Daniel E. Draper—1968 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515	President and Principal Executive Officer	Since 2015	President and Principal Executive Officer, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2015-Present); Chief Executive Officer (2016-Present) and Managing Director (2013-Present), Invesco PowerShares Capital Management LLC; Senior Vice President, Invesco Distributors, Inc. (2014-Present); formerly, 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 (2013-2015) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-2015); 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, 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).
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 (2010-Present); formerly, Vice President of Portfolio Management, Invesco PowerShares Capital Management LLC (2008-2010); 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).
Christopher Joe—1969 Invesco PowerShares Capital Management LLC 11 Greenway Plaza, Suite 1000 Houston, TX 77046-1173	Chief Compliance Officer	Since 2012	Chief Compliance Officer of Invesco PowerShares Capital Management LLC (2015-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); formerly, Chief Compliance Officer, Invesco Investment Advisers, LLC (registered investment adviser) (2010–2013), U.S. Compliance Director, Invesco, Ltd. (2006-2014) and Deputy Chief Compliance Officer of Invesco Advisers, Inc. (2014-2015).

* 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.

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
Sheri Morris—1964 Invesco Management Group, Inc. 11 Greenway Plaza, Suite 1000 Houston, TX 77046	Vice President	Since 2012	President, Principal Executive Officer and Treasurer, The Invesco Funds (2016-Present); 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, Vice President, Treasurer and Principal Financial Officer, The Invesco Funds (2008-2016); 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.
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 (2010-Present) and Secretary (2015-Present), 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).
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 Services, Invesco PowerShares Capital Management LLC (2013-Present).
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, and 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, 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.); Chief Administrative Officer, North American Retail, Invesco Ltd. (2007-Present); Director, Invesco Corporate Class Inc. (2014-Present); Director, Invesco Global Direct Real Estate Feeder GP Ltd. (2015-Present); Director, Invesco Canada Holdings Inc. (2002-Present); Director, Invesco Financial Services Ltd. / Services Financiers Invesco Ltée and Trimark Investments Ltd./Placements Trimark Ltée (2014-Present); Director, Invesco IP Holdings (Canada) Ltd. (2016-Present); Director, Invesco Global Direct Real Estate GP Ltd. (2015-Present); formerly, Executive Vice President and Chief Financial Officer, Invesco Inc. (2009-2015); Director, Executive Vice President and Chief Financial Officer, Invesco Canada Ltd. (formerly, Invesco Trimark Ltd.) (2000-2011).

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 14, 2016, 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^TM Portfolio

PowerShares Cleantech^TM 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 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 Russell Top 200 Equal Weight Portfolio

PowerShares Russell Top 200 Pure Growth Portfolio

PowerShares Russell Top 200 Pure Value Portfolio

PowerShares Russell Midcap Equal Weight Portfolio

PowerShares Russell Midcap Pure Growth Portfolio

PowerShares Russell Midcap Pure Value Portfolio

PowerShares Russell 2000 Equal Weight Portfolio

PowerShares Russell 2000 Pure Growth Portfolio

PowerShares Russell 2000 Pure Value Portfolio

PowerShares S&P 500^® 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 for each Fund, (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.

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, 2015, 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 certain Funds and their underlying indexes. In reviewing the tracking error reports, 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 correlation and tracking error for

79

Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)

each Fund was within the targeted range set forth in the Trust’s registration statement and 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^TM Portfolio, PowerShares High Yield Equity Dividend Achievers^TM Portfolio, PowerShares International Dividend Achievers^TM Portfolio, PowerShares FTSE RAFI US 1000 Portfolio, PowerShares FTSE RAFI US 1500 Small-Mid Portfolio, PowerShares Russell Top 200 Equal Weight Portfolio, PowerShares Russell Top 200 Pure Growth Portfolio, PowerShares Russell Top 200 Pure Value Portfolio, PowerShares Russell Midcap Equal Weight Portfolio, PowerShares Russell Midcap Pure Growth Portfolio, PowerShares Russell Midcap Pure Value Portfolio, PowerShares Russell 2000 Equal Weight Portfolio, PowerShares Russell 2000 Pure Growth Portfolio, PowerShares Russell 2000 Pure Value Portfolio and PowerShares S&P 500^® Quality Portfolio;

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

● 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 Russell Top 200 Pure Growth Portfolio, PowerShares Russell Top 200 Pure Value Portfolio, PowerShares Russell Midcap Pure Growth Portfolio, PowerShares Russell Midcap Pure Value Portfolio, PowerShares Russell 2000 Pure Growth, Portfolio, PowerShares Russell 2000 Pure Value Portfolio and PowerShares S&P 500^® Quality Portfolio; and

● 0.25% of the Fund’s average daily net assets for each of PowerShares Russell Top 200 Equal Weight Portfolio, PowerShares Russell Midcap Equal Weight Portfolio and PowerShares Russell 2000 Equal Weight Portfolio (The net advisory fees, after giving effect to the Expense Caps below, were 0.01%, -0.05% and -0.39% and, respectively, for PowerShares Russell Top 200 Equal Weight Portfolio, PowerShares Russell Midcap Equal Weight Portfolio and PowerShares Russell 2000 Equal Weight 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, 2017, 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 Russell Top 200 Pure Growth Portfolio, PowerShares Russell Top 200 Pure Value Portfolio, PowerShares Russell Midcap Pure Growth Portfolio, PowerShares Russell Midcap Pure Value Portfolio, PowerShares Russell 2000 Pure Growth Portfolio and PowerShares Russell 2000 Pure 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^® Quality Portfolio;

● 0.25%, excluding interest expenses, offering costs, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses for PowerShares Top 200 Equal Weight Portfolio, PowerShares Russell Midcap Equal Weight Portfolio and PowerShares Russell 2000 Equal Weight Portfolio;

80

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

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 Median*	Equal to/Lower than Open-End Active Fund Median
PowerShares Dynamic Semiconductors Portfolio			X
PowerShares Dynamic Software Portfolio			X
PowerShares Financial Preferred Portfolio		N/A	X
PowerShares FTSE RAFI US 1000 Portfolio			X
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio	X		X
PowerShares Russell Top 200 Equal Weight Portfolio		X	X
PowerShares Russell Top 200 Pure Growth Portfolio			X
PowerShares Russell Top 200 Pure Value Portfolio			X
PowerShares Russell Midcap Equal Weight Portfolio			X
PowerShares Russell Midcap Pure Growth Portfolio	X	X	X
PowerShares Russell Midcap Pure Value Portfolio	X		X
PowerShares Russell 2000 Equal Weight Portfolio	X		X
PowerShares Russell 2000 Pure Growth Portfolio		X	X
PowerShares Russell 2000 Pure Value Portfolio			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 Quality Portfolio			X
PowerShares Water Resources Portfolio			X
PowerShares WilderHill Clean Energy Portfolio			X
PowerShares WilderHill Progressive Energy Portfolio			X
PowerShares Zacks Micro Cap Portfolio			X

* 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			X
PowerShares Buyback Achievers Portfolio			X
PowerShares Cleantech Portfolio			X
PowerShares Dividend Achievers Portfolio		X	X
PowerShares DWA Basic Materials Momentum Portfolio			X
PowerShares DWA Consumer Cyclicals Momentum Portfolio			X
PowerShares DWA Consumer Staples Momentum Portfolio			X
PowerShares DWA Energy Momentum Portfolio			X
PowerShares DWA Financial Momentum Portfolio			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 Healthcare Momentum Portfolio			X
PowerShares DWA Industrials Momentum Portfolio			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			X
PowerShares Dynamic Building & Construction Portfolio			X
PowerShares Dynamic Energy Exploration & Production Portfolio			X
PowerShares Dynamic Food & Beverage Portfolio			X
PowerShares Dynamic Large Cap Growth Portfolio			X
PowerShares Dynamic Large Cap Value Portfolio			X
PowerShares Dynamic Leisure and Entertainment Portfolio			X
PowerShares Dynamic Market Portfolio			X
PowerShares Dynamic Media Portfolio			X
PowerShares Dynamic Networking Portfolio			X
PowerShares Dynamic Oil & Gas Services Portfolio			X
PowerShares Dynamic Pharmaceuticals Portfolio			X
PowerShares Dynamic Retail Portfolio			X
PowerShares Dynamic Semiconductors Portfolio			X
PowerShares Dynamic Software Portfolio			X
PowerShares Financial Preferred Portfolio		N/A	X
PowerShares FTSE RAFI US 1000 Portfolio	X	X	X
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio	X	X	X
PowerShares Russell Top 200 Equal Weight Portfolio		X	X
PowerShares Russell Top 200 Pure Growth Portfolio		X	X
PowerShares Russell Top 200 Pure Value Portfolio			X
PowerShares Russell Midcap Equal Weight Portfolio		X	X
PowerShares Russell Midcap Pure Growth Portfolio	X	X	X
PowerShares Russell Midcap Pure Value Portfolio	X		X
PowerShares Russell 2000 Equal Weight Portfolio	X	X	X
PowerShares Russell 2000 Pure Growth Portfolio		X	X
PowerShares Russell 2000 Pure 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 Quality Portfolio	X	X	X
PowerShares Water Resources Portfolio			X
PowerShares WilderHill Clean Energy Portfolio			X
PowerShares WilderHill Progressive Energy Portfolio			X
PowerShares Zacks Micro Cap Portfolio			X

83

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 Cap agreed to by the Adviser. 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.

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

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

84

Board Considerations Regarding Continuation of Investment Advisory Agreement

At a meeting held on April 14, 2016, 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 for each Fund, (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.

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, 2015, 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. 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 ratios of its ETF peer funds and open-end index peer funds, but was lower than the median net expense ratio of its 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 and open-end actively-managed peer funds, but was higher than the median net expense ratio of its open-end index 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 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.

85

Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)

Economies of Scale and Whether Fee Levels Reflect These Economies of Scale. The Trustees reviewed the information provided by the Adviser as to the extent to which economies of scale are realized as each Fund grows and whether fee levels reflect economies of scale for the benefit of shareholders. The Trustees reviewed each Fund’s asset size 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. No single factor was determinative in the Board’s analysis.

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.

©2016 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, 2016.

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 2016	(e)(2) Percentage of Services Approved for fiscal year end 2016 Pursuant to Waiver of Pre- Approval Requirement(1)	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)
Audit Fees	$    755,425	N/A	$    702,453	N/A
Audit-Related Fees	$   0	0%	$   0	0%
Tax Fees(2)	$    420,560	0%	$    400,749	0%
All Other Fees	$   0	0%	$   0	0%
Total Fees	$    1,175,985	0%	$    1,103,202	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, 2016 include fees billed for reviewing tax returns, 2015 excise tax returns and excise tax distributions calculations . Tax fees for the fiscal year ended April 30, 2015 included fees billed for reviewing tax returns, 2014 excise tax returns and excise tax distribution calculations.

Fees Billed by PwC Related to PowerShares and PowerShares Affiliates

PwC billed PowerShares Capital Management LLC (“PowerShares”), the Registrant’s adviser, and any entity controlling, controlled by or under common control with PowerShares that provides ongoing services to the Registrant (“ Affiliates”) aggregate fees for pre-approved non-audit services rendered to PowerShares and Affiliates for the last two fiscal years as follows:

	Fees Billed for Non- Audit Services Rendered to PowerShares and Affiliates for fiscal year end 2016 That Were Required to be Pre-Approved by the Registrant’s Audit Committee	(e)(2) Percentage of Fees Billed Applicable to Non-Audit Services Provided for fiscal year end 2016 Pursuant to Waiver of Pre- Approval Requirement(1)	Fees Billed for Non- Audit Services Rendered to PowerShares and Affiliates for fiscal year end 2015 That Were Required to be Pre-Approved by the Registrant’s Audit Committee	(e)(2) Percentage of Fees Billed Applicable to Non-Audit Services Provided for fiscal year end 2015 Pursuant to Waiver of Pre- Approval Requirement(1)
Audit-Related Fees	$   634,963	0%	$574,000	0%
Tax Fees	$               0	0%	$            0	0%
All Other Fees	$3,750,000	0%	$            0	0%
Total Fees(2)	$4,384,963	0%	$574,000	0%

(1) With respect to 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, PowerShares and PowerShares Affiliates to PwC during a fiscal year; 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) Audit-Related fees for the year end 2016 include fees billed related to reviewing controls at a service organization. Audit-Related fees for the year end 2015 include fees billed related to reviewing controls at a service organization.

All other fees for the year end 2016 include fees billed related to reviewing operating effectiveness of strategic projects.

(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 $420,560 for the fiscal year ended April 30, 2016 and $400,749 for the fiscal year ended April 30, 2015 for non-audit services rendered to the Registrant.

Including the fees for services not required to be pre-approved by the registrant’s audit committee, PwC billed PowerShares and Affiliates aggregate non-audit fees of $8,160,000 for the fiscal year ended 2016, and $4,660,000 for the fiscal year ended 2015, for non-audit services rendered to PowerShares and Affiliates.

(h) The above information shows the amount of fees that PwC billed during the Registrant’s last two fiscal years for non-audit services. The Audit Committee pre-approved all non-audit services that PwC provided to PowerShares and Affiliates that related directly to the Registrant’s operations or financial reporting. The Audit Committee also received information from PwC about any non-audit services that PwC rendered during the Registrant’s last fiscal year to PowerShares and Affiliates that were not required to be preapproved by the Audit Committee. The Audit Committee considered this information in evaluating PwC’s independence.

In addition, PwC, the Independent Accountant to the Registrant, has advised the Audit Committee of the Board of Trustees of the Registrant (the “Audit Committee”) that it identified an issue related to its independence under
Rule 2-01(c)(1)(ii)(A) of Regulation S-X (referred to as the “Loan Rule”). The Loan Rule prohibits accounting firms, such as PwC, from being deemed independent if they have certain financial relationships with their audit clients or certain affiliates of those clients.

Specifically, the Loan Rule provides, in relevant part, that an accounting firm is not independent if it receives a loan from an audit client or it receives a loan from a lender that is a “record or beneficial owner of more than ten percent of the audit client’s equity securities.” Pursuant to the SEC’s interpretation of the Loan Rule, some of PwC’s relationships with lenders who also own shares of one or more funds within the Invesco investment company complex may implicate the Loan Rule.

However, after evaluating the facts and circumstances related to its lending relationships, PwC informed the Audit Committee that
(1) PwC’s ability to exercise objective and impartial judgment with respect to its audits of the Registrant’s financial statements was not, and will not be, impaired; (2) a reasonable investor with knowledge of all relevant facts and circumstances would reach the same conclusion; and (3) PwC’s independence was not impaired and that it remained independent in conducting its audit of the Registrant’s financial statements. PwC informed the Audit Committee that its conclusion was based on a number of factors, including, among others, PwC’s belief that the lenders have no influence over the investment adviser to the Registrant, or the Registrant, and that the individuals at PwC who arranged the lending relationships have no oversight of, or ability to influence, the individuals at PwC who conducted the audit of the Registrant’s financial statements.

On June 20, 2016, the Staff of the Securities and Exchange Commission (the “SEC”) issued a “no-action” letter confirming that it would not recommend that the SEC commence enforcement action against a fund that relied on audit services performed by an audit firm that was not in compliance with the Loan Rule in certain specified circumstances. The circumstances described in the no-action letter were substantially similar to the circumstances that called into question PwC’s independence under the Loan Rule with respect to the Registrant. PwC has confirmed that it meets the conditions of the no-action relief. The Adviser and the Registrant believe that the Registrant can rely on the relief granted in the no-action letter and continue to issue financial statements that are audited by PwC.

If, in the future, the independence of PwC is called into question under the Loan Rule by circumstances that are not addressed in the no-action letter, the Registrant will need to take other actions for the Registrant’s filings containing financial statements to be compliant with applicable securities laws.

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/ Daniel E. Draper
Name:	Daniel E. Draper
Title:	President
Date:	July 8, 2016

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/ Daniel E. Draper
Name:	Daniel E. Draper
Title:	President
Date:	July 8, 2016

By:     /s/ Steven Hill
Name:	Steven Hill
Title:	Treasurer
Date:	July 8, 2016