485BPOS

AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON OCTOBER 12, 2011.

No. 333-138490

No. 811-21977

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM N-1A

REGISTRATION STATEMENT
UNDER THE SECURITIES ACT OF 1933	o
Pre-Effective Amendment No.	o
Post-Effective Amendment No. 256	x
	and/or
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940
Amendment No. 257	x

(Check appropriate box or boxes)

POWERSHARES EXCHANGE-TRADED FUND TRUST II

(Exact Name of Registrant as Specified in Charter)

301 West Roosevelt Road

Wheaton, IL 60187

(Address of Principal Executive Office)

Registrant’s Telephone Number, including Area Code: (800) 983-0903

Andrew Schlossberg	With a copy to:
301 West Roosevelt Road	Alan P. Goldberg
Wheaton, IL 60187	K&L Gates LLP
(Name and Address of Agent for Service)	70 W. Madison St., Suite 3100
	Chicago, IL 60602

APPROXIMATE DATE OF PROPOSED PUBLIC OFFERING:

It is proposed that this filing will become effective (check appropriate box):

ximmediately upon filing pursuant to paragraph (b) of Rule 485.

oon [date] pursuant to paragraph (b) of Rule 485.

o60 days after filing pursuant to paragraph (a)(1) of Rule 485.

oon [date] pursuant to paragraph (a) of Rule 485.

o75 days after filing pursuant to paragraph (a)(2) of Rule 485.

oon [date] pursuant to paragraph (a) of Rule 485.

EXPLANATORY NOTE

This filing relates solely to the following series of the Registrant:

PowerShares Chinese Yuan Dim Sum Bond Portfolio

SIGNATURES

Pursuant to the requirements of the Securities Act and the Investment Company Act, the Trust certifies that it meets all of the requirements for effectiveness of this registration statement under Rule 485(b) under the Securities Act and has duly caused this registration statement to be signed on its behalf by the undersigned, duly authorized, in the City of Wheaton and State of Illinois, on the 12th day of October, 2011.

PowerShares Exchange-Traded Fund Trust II
By:	/s/ Andrew Schlossberg
	Title: Andrew Schlossberg, President

Pursuant to the requirements of the Securities Act of 1933, this registration statement has been signed below by the following persons in the capacities indicated on the dates indicated.

SIGNATURE	TITLE	DATE
/s/ Andrew Schlossberg	President	October 12, 2011
Andrew Schlossberg
/s/ Steve Hill	Treasurer	October 12, 2011
Steve Hill
/s/ Anna Paglia	Secretary	October 12, 2011
Anna Paglia
* /s/ H. Bruce Bond	Chairman and Trustee	October 12, 2011
H. Bruce Bond
* /s/ Kevin M. Carome	Trustee	October 12, 2011
Kevin M. Carome
* /s/ Ronn R. Bagge	Trustee	October 12, 2011
Ronn R. Bagge
* /s/ Todd J. Barre	Trustee	October 12, 2011
Todd J. Barre
* /s/ Marc M. Kole	Trustee	October 12, 2011
Marc M. Kole
* /s/ Philip M. Nussbaum	Trustee	October 12, 2011
Philip M. Nussbaum
* /s/ Donald H. Wilson	Trustee	October 12, 2011
Donald H. Wilson
* By: /s/ Anna Paglia		October 12, 2011
Anna Paglia
Attorney-In-Fact

* Anna Paglia signs this registration statement pursuant to powers of attorney filed herewith.

EXHIBIT INDEX

Index No.	Description of Exhibit
EX-101.INS	XBRL Instance Document
EX-101.SCH	XBRL Taxonomy Extension Schema Document
EX-101.CAL	XBRL Taxonomy Extension Calculation Linkbase
EX-101.DEF	XBRL Taxonomy Extension Definition Linkbase
EX-101.LAB	XBRL Taxonomy Extension Labels Linkbase
EX-101.PRE	XBRL Taxonomy Extension Presentation Linkbase

XML



Label	Element	Value
Risk/Return:	rr_RiskReturnAbstract
Document Type	dei_DocumentType	485BPOS
Document Period End Date	dei_DocumentPeriodEndDate	Sep. 21, 2011
Registrant Name	dei_EntityRegistrantName	PowerShares Exchange-Traded Fund Trust II
Central Index Key	dei_EntityCentralIndexKey	0001378872
Amendment Flag	dei_AmendmentFlag	false
Document Creation Date	dei_DocumentCreationDate	Sep. 21, 2011
Document Effective Date	dei_DocumentEffectiveDate	Sep. 21, 2011
PowerShares Chinese Yuan Dim Sum Bond Portfolio (Prospectus Summary) | PowerShares Chinese Yuan Dim Sum Bond Portfolio | PowerShares Chinese Yuan Dim Sum Bond Portfolio
Risk/Return:	rr_RiskReturnAbstract
Trading Symbol	dei_TradingSymbol	DSUM

XML



Label	Element	Value
Risk/Return:	rr_RiskReturnAbstract
ProspectusDate	rr_ProspectusDate	Sep. 21, 2011
PowerShares Chinese Yuan Dim Sum Bond Portfolio (Prospectus Summary) | PowerShares Chinese Yuan Dim Sum Bond Portfolio
Risk/Return:	rr_RiskReturnAbstract
Risk/Return, Heading	rr_RiskReturnHeading	PowerShares Chinese Yuan Dim Sum Bond Portfolio
Investment Objective, Heading	rr_ObjectiveHeading	Investment Objective
investment Objective, Primary	rr_ObjectivePrimaryTextBlock	The PowerShares Chinese Yuan Dim Sum Bond Portfolio (the "Fund") seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Citigroup Dim Sum (Offshore CNY) Bond Index (the "Underlying Index" or "Dim Sum Bond Index").
Expense, Heading	rr_ExpenseHeading	Fund Fees and Expenses
Expense, Narrative	rr_ExpenseNarrativeTextBlock	This table describes the fees and expenses that you may pay if you buy and hold shares of the Fund ("Shares"). Investors may pay brokerage commissions on their purchases and sales of Shares, which are not reflected in the table or the example below.
Operating Expenses, Caption	rr_OperatingExpensesCaption	Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)
Portfolio Turnover, Heading	rr_PortfolioTurnoverHeading	Portfolio Turnover
Portfolio Turnover	rr_PortfolioTurnoverTextBlock	The Fund pays transaction costs, such as commissions, when it purchases and sells securities (or "turns over" its portfolio). A higher portfolio turnover will cause the Fund to incur additional transaction costs and may result in higher taxes when Shares are held in a taxable account. These costs, which are not reflected in Total Annual Fund Operating Expenses or in the example, may affect the Fund's performance. At the date of this Prospectus, the Fund does not have an operating history and turnover data therefore is not available.
Expense, Exchange Traded Fund, Commissions	rr_ExpenseExchangeTradedFundCommissions	Investors may pay brokerage commissions on their purchases and sales of Shares, which are not reflected in the table or the example below.
Other Expenses, New Fund, Based on Estimates	rr_OtherExpensesNewFundBasedOnEstimates	Other Expenses are based on estimated amounts for the current fiscal year.
Expense Example, Heading	rr_ExpenseExampleHeading	Example
Expense Example, Narrative	rr_ExpenseExampleNarrativeTextBlock	This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other funds. This example assumes that you invest $10,000 in the Fund for the time periods indicated and then sell all of your Shares at the end of those periods. The example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. This example does not include brokerage commissions that investors may pay to buy and sell Shares of the Fund.
Expense Example, By Year, Caption	rr_ExpenseExampleByYearCaption	Although your actual costs may be higher or lower, your costs, based on these assumptions, would be:
Investment Strategy, Heading	rr_StrategyHeading	Principal Investment Strategies
Investment Strategy, Narrative	rr_StrategyNarrativeTextBlock	The Fund generally will invest at least 80% of its total assets in Chinese Yuan-denominated bonds issued and settled outside of mainland China. The Fund generally will invest at least 90% of its total assets in Yuan-denominated bonds that comprise the Underlying Index. The Underlying Index measures the performance of Chinese Yuan-denominated "Dim Sum" bonds that are issued and settled outside of Mainland China. The Underlying Index provides exposure to a rapidly growing market segment without facing the challenges often associated with investing in the onshore Chinese bond market. The Underlying Index includes fixed-rate securities issued by governments, agencies, supranationals, and corporations. The bonds within the Underlying Index generally have a fixed rate coupon (excluding zeros), a minimum maturity of one year and a minimum size outstanding of 1 billion Yuan. The bonds that comprise the Underlying Index are rated below investment grade. Below investment grade bond are rated Ba1 or lower by Moody's Investor Services, Inc., BB+ or lower by Standard & Poor's Rating Group, a division of The McGraw-Hill Companies, Inc., or BB+ or lower by Fitch Ratings, Inc. or, if unrated, are of comparable quality. Below investment grade bonds, commonly referred to as "junk" or "high yield" bonds, are regarded as having predominately speculative characteristics with respect to an issuer's capacity to pay interest and repay principal. The Fund does not purchase all of the securities in the Underlying Index. Instead, Invesco PowerShares Capital Management LLC (the "Adviser") utilizes a "sampling" methodology in seeking to achieve the Fund's investment objective. Citigroup Index LLC (the "Index Provider") develops and calculates the Underlying Index. Concentration Policy. The Fund will invest more than 25% of the value of its net assets in securities of issuers in an industry or group of industries to the extent the Underlying Index concentrates in an industry or group of industries. The Fund will not concentrate its investments in any industry or group of industries in which the Underlying Index is not concentrated.
Investment Strategy, Portfolio Concentration	rr_StrategyPortfolioConcentration	The Fund will invest more than 25% of the value of its net assets in securities of issuers in an industry or group of industries to the extent the Underlying Index concentrates in an industry or group of industries. The Fund will not concentrate its investments in any industry or group of industries in which the Underlying Index is not concentrated.
Risk, Heading	rr_RiskHeading	Principal Risks of Investing in the Fund
Risk, Narrative	rr_RiskNarrativeTextBlock	The following summarizes the principal risks of the Fund. Fixed-Income Securities Risk. Fixed-income securities are subject to interest rate risk and credit risk. Interest rate risk refers to fluctuations in the value of a fixed-income security resulting from changes in the general level of interest rates. When the general level of interest rates goes up, the prices of most fixed-income securities go down. When the general level of interest rates goes down, the prices of most fixed-income securities go up. Credit risk refers to the possibility that the issuer of a security will be unable and/or unwilling to make timely interest payments and/or repay the principal on its debt. Debt instruments are subject to varying degrees of credit risk, which may be reflected in credit ratings. There is a possibility that the credit rating of a fixed-income security may be downgraded after purchase, which may adversely affect the value of the security. Capital Controls Risk. Adverse economic conditions, such as unfavorable or volatile currency exchange rates and interest rates, political events or other conditions may cause the Chinese government to intervene and impose "capital controls." Capital controls include the prohibition of, or restrictions on, the ability to transfer currency, securities or other assets. In addition, this intervention may lead to levies placed on profits repatriated by foreign entities (such as the Fund). The Chinese government's imposition of capital controls can impact the ability of the Fund to buy, sell or otherwise transfer securities or currency, may adversely affect the trading market and price for Shares, and may cause the Fund to decline in value. Interest Rate Risk. Interest rate risk is the risk that fixed-income securities will decline in value because of changes in interest rates. As interest rates rise, the value of certain fixed-income securities decreases. Similarly, if interest rates decline, the value of certain fixed-income securities may increase. Fixed-income securities with longer maturities typically are more sensitive to changes in interest rates, making them more volatile than securities with shorter maturities. Offshore Investor Risk. There are special risks associated with investing in securities designed to provide exposure to Chinese Yuan, such as Yuan-denominated bonds in which the Fund will invest. The Chinese government maintains strict currency controls and regularly intervenes in the currency market. The Chinese government's actions may not be transparent or predictable. As a result, the value of the Yuan, and the value of Yuan-denominated securities, may change quickly and arbitrarily. These limitations and restrictions may impact the availability, liquidity, and pricing of securities designed to provide offshore investors with exposure to Chinese markets. As a result, returns achieved by offshore investors, such as the Fund, could differ from those available to domestic investors in China. Currency Risk. The Fund invests at least 80% of its assets in Chinese Yuan-denominated bonds issued and settled outside of mainland China. Because the Fund's net asset value ("NAV") is determined in U.S. dollars, the NAV could decline if the currency of the non-U.S. market in which the Fund invests depreciates against the U.S. dollar, even if the value of the Fund's holdings increases, as measured in the foreign currency, including securities denominated in the Chinese Yuan. The Yuan currently is not a freely convertible currency. The government of China maintains strict currency controls. As a result, the value of the Yuan, and the value of securities designed to provide exposure to the Yuan, such as Yuan-denominated bonds issued by offshore issuers, can change quickly. These and other factors could have a negative impact on the Fund's performance and increase the volatility of an investment in the Fund. The Chinese government's policies on currency, control and repatriation restrictions are subject to change, and the Fund's or the shareholders' position may be adversely affected. In addition, if the Chinese currencies, the Renminbi, which is traded in mainland China, and the Yuan, which is traded offshore (traded as "CNH" in Hong Kong), diverge in value, that divergence could negatively impact the Fund. Liquidity Risk. Liquidity risk exists when a particular investment is difficult to purchase or sell. If the Fund invests in illiquid securities or current portfolio securities become illiquid, it may reduce the returns of the Fund because the Fund may be unable to sell the illiquid securities at an advantageous time or price. The Underlying Index consists of Yuan-denominated debt securities issued or distributed outside mainland China, however, the quantity of such debt securities that are available for inclusion in the Underlying Index, and thus for the Fund to invest in, currently is limited. Call Risk. If interest rates fall, it is possible that issuers of callable securities with high interest coupons will "call" (or prepay) their bonds before their maturity date. If a call were exercised by the issuer during a period of declining interest rates, the Fund likely will need to replace such called security with a lower yielding security. If that were to happen, the Fund's net investment income could fall. Market Risk. Securities in the Underlying Index are subject to market fluctuations. You should anticipate that the value of the Shares will decline, more or less, in correlation with any decline in the value of the securities in the Underlying Index. Market Trading Risk. The Fund faces numerous market trading risks, including the potential lack of an active market for the Shares, losses from trading in secondary markets, and disruption in the creation/redemption process of the Fund. Any of these factors may lead to the Shares trading at a premium or discount to the Fund's NAV. Sampling Risk. The Fund's use of a representative sampling approach will result in it holding a smaller number of bonds than are in the Underlying Index. As a result, an adverse development to an issuer of bonds that the Fund holds could result in a greater decline in NAV than would be the case if the Fund held all of the bonds in the Underlying Index. To the extent the assets in the Fund are smaller, these risks will be greater. Non-Correlation Risk. The Fund's return may not match the return of the Underlying Index for a number of reasons. For example, the Fund incurs operating expenses not applicable to the Underlying Index, and incurs costs in buying and selling securities, especially when rebalancing the Fund's securities holdings to reflect changes in the composition of the Underlying Index. The Fund's use of a representative sampling approach may cause the Fund not to be as well-correlated with the return of the Underlying Index as would be the case if the Fund purchased all of the securities in the Underlying Index in the proportions represented in the Underlying Index. In addition, the performance of the Fund and the Underlying Index may vary due to asset valuation differences and differences between the Fund's portfolio and the Underlying Index resulting from legal restrictions, cost or liquidity constraints. Concentration Risk. A significant percentage of the Underlying Index may be composed of issuers in a single industry or sector of the economy. If the Fund is focused in an industry or sector, it may present more risks than if it were broadly diversified over numerous industries and sectors of the economy. At times, such industry or group of industries may be out of favor and underperform other industries of the market as a whole. Cash Redemption Risk. Unlike most exchange-traded funds ("ETFs"), the Fund currently intends to effect redemptions principally for cash and partially in-kind, rather than primarily in-kind redemptions because of the nature of the Fund's investments. As such, investments in Shares may be less tax efficient than investments in conventional ETFs. Non-Diversified Fund Risk. Because the Fund is non-diversified and can invest a greater portion of its assets in securities of individual issuers than a diversified fund, 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-Investment Grade Securities Risk. Non-investment grade securities and unrated securities of comparable credit quality are subject to the increased risk of an issuer's inability to meet principal and interest payment obligations. These securities may be subject to greater price volatility due to such factors as specific corporate developments, interest rate sensitivity, negative perceptions of the non-investment grade securities markets generally, real or perceived adverse economic and competitive industry conditions and less secondary market liquidity. If the issuer of non-investment grade securities defaults, the Fund may incur additional expenses to seek recovery. Sovereign Debt Risk. Investments in sovereign debt securities involve special risks. The governmental authority that controls the repayment of the debt may be unwilling or unable to repay the principal and/or interest when due in accordance with the terms of such securities due to the extent of its foreign reserves; the availability of sufficient foreign exchange on the date a payment is due; the relative size of the debt service burden to the economy as a whole; or the government debtor's policy towards the International Monetary Fund and the political constraints to which a government debtor may be subject. If an issuer of sovereign debt defaults on payments of principal and/or interest, the Fund may have limited legal recourse against the issuer and/or guarantor. In certain cases, remedies must be pursued in the courts of the defaulting party itself, and the Fund's ability to obtain recourse may be limited. Index Risk. Unlike many investment companies, the Fund does not utilize an investing strategy that seeks returns in excess of the Underlying Index. Therefore, the Fund would not necessarily buy or sell a security unless that security is added or removed, respectively, from its Underlying Index, even if that security generally is underperforming. Issuer-Specific Changes. The value of an individual security or particular type of security may be more volatile than the market as a whole and may perform differently from the value of the market as a whole. The Shares will change in value, and you could lose money by investing in the Fund. The Fund may not achieve its investment objective. An investment in the Fund is not a deposit with a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.
Risk, Lose Money	rr_RiskLoseMoney	The Shares will change in value, and you could lose money by investing in the Fund.
Risk, Nondiversified Status	rr_RiskNondiversifiedStatus	Because the Fund is non-diversified and can invest a greater portion of its assets in securities of individual issuers than a diversified fund, 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.
Risk, Not Insured Depository Institution	rr_RiskNotInsuredDepositoryInstitution	An investment in the Fund is not a deposit with a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.
Bar Chart and Performance Table, Heading	rr_BarChartAndPerformanceTableHeading	Performance
Performance, Narrative	rr_PerformanceNarrativeTextBlock	The Fund has not yet commenced operations and therefore does not have a performance history. Once available, the Fund's performance information will be accessible on the Fund's website at www.InvescoPowerShares.com and will provide some indication of the risks of investing in the Fund.
Performance, One Year or Less	rr_PerformanceOneYearOrLess	The Fund has not yet commenced operations and therefore does not have a performance history.
Performance, Availability Website Address	rr_PerformanceAvailabilityWebSiteAddress	www.InvescoPowerShares.com
PowerShares Chinese Yuan Dim Sum Bond Portfolio | PowerShares Chinese Yuan Dim Sum Bond Portfolio
Risk/Return:	rr_RiskReturnAbstract
Management Fees	rr_ManagementFeesOverAssets	0.45%
Other Expenses	rr_OtherExpensesOverAssets	none	[1]
Total Annual Fund Operating Expenses	rr_ExpensesOverAssets	0.45%
Expense Example, With Redemption, 1 Year	rr_ExpenseExampleYear01	46
Expense Example, With Redemption, 3 Years	rr_ExpenseExampleYear03	144

[1] Other Expenses are based on estimated amounts for the current fiscal year.

XML



PowerShares Chinese Yuan Dim Sum Bond Portfolio (Prospectus Summary) | PowerShares Chinese Yuan Dim Sum Bond Portfolio

PowerShares Chinese Yuan Dim Sum Bond Portfolio

Investment Objective

The PowerShares Chinese Yuan Dim Sum Bond Portfolio (the "Fund") seeks
investment results that generally correspond (before fees and expenses)
to the price and yield of the Citigroup Dim Sum (Offshore CNY) Bond
Index (the "Underlying Index" or "Dim Sum Bond Index").

Fund Fees and Expenses

This table describes the fees and expenses that you may pay if you buy and
hold shares of the Fund ("Shares"). Investors may pay brokerage commissions
on their purchases and sales of Shares, which are not reflected in the table
or the example below.

Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)

Annual Fund Operating Expenses		PowerShares Chinese Yuan Dim Sum Bond Portfolio
Management Fees		0.45%
Other Expenses	[1]	none
Total Annual Fund Operating Expenses		0.45%

Example

This example is intended to help you compare the cost of investing in the Fund
with the cost of investing in other funds. This example assumes that you invest
$10,000 in the Fund for the time periods indicated and then sell all of your
Shares at the end of those periods. The example also assumes that your
investment has a 5% return each year and that the Fund's operating expenses
remain the same. This example does not include brokerage commissions that
investors may pay to buy and sell Shares of the Fund.

Although your actual costs may be higher or lower, your costs, based on these assumptions, would be:

Expense Example (USD $)	Expense Example, With Redemption, 1 Year	Expense Example, With Redemption, 3 Years
PowerShares Chinese Yuan Dim Sum Bond Portfolio	46	144

Portfolio Turnover

The Fund pays transaction costs, such as commissions, when it purchases and
sells securities (or "turns over" its portfolio). A higher portfolio turnover
will cause the Fund to incur additional transaction costs and may result in
higher taxes when Shares are held in a taxable account. These costs, which are
not reflected in Total Annual Fund Operating Expenses or in the example, may
affect the Fund's performance. At the date of this Prospectus, the Fund does
not have an operating history and turnover data therefore is not available.

Principal Investment Strategies

The Fund generally will invest at least 80% of its total assets in Chinese
Yuan-denominated bonds issued and settled outside of mainland China. The Fund
generally will invest at least 90% of its total assets in Yuan-denominated bonds
that comprise the Underlying Index. The Underlying Index measures the
performance of Chinese Yuan-denominated "Dim Sum" bonds that are issued and
settled outside of Mainland China. The Underlying Index provides exposure to a
rapidly growing market segment without facing the challenges often associated
with investing in the onshore Chinese bond market. The Underlying Index includes
fixed-rate securities issued by governments, agencies, supranationals, and
corporations. The bonds within the Underlying Index generally have a fixed rate
coupon (excluding zeros), a minimum maturity of one year and a minimum size
outstanding of 1 billion Yuan. The bonds that comprise the Underlying Index are
rated below investment grade. Below investment grade bond are rated Ba1 or lower
by Moody's Investor Services, Inc., BB+ or lower by Standard & Poor's Rating
Group, a division of The McGraw-Hill Companies, Inc., or BB+ or lower by Fitch
Ratings, Inc. or, if unrated, are of comparable quality. Below investment grade
bonds, commonly referred to as "junk" or "high yield" bonds, are regarded as
having predominately speculative characteristics with respect to an issuer's
capacity to pay interest and repay principal.

The Fund does not purchase all of the securities in the Underlying Index.
Instead, Invesco PowerShares Capital Management LLC (the "Adviser") utilizes a
"sampling" methodology in seeking to achieve the Fund's investment objective.
Citigroup Index LLC (the "Index Provider") develops and calculates the
Underlying Index.

Concentration Policy. The Fund will invest more than 25% of the value of its net
assets in securities of issuers in an industry or group of industries to the
extent the Underlying Index concentrates in an industry or group of industries.
The Fund will not concentrate its investments in any industry or group of
industries in which the Underlying Index is not concentrated.

Principal Risks of Investing in the Fund

The following summarizes the principal risks of the Fund.

Fixed-Income Securities Risk. Fixed-income securities are subject to interest
rate risk and credit risk. Interest rate risk refers to fluctuations in the
value of a fixed-income security resulting from changes in the general level of
interest rates. When the general level of interest rates goes up, the prices of
most fixed-income securities go down. When the general level of interest rates
goes down, the prices of most fixed-income securities go up. Credit risk refers
to the possibility that the issuer of a security will be unable and/or unwilling
to make timely interest payments and/or repay the principal on its debt. Debt
instruments are subject to varying degrees of credit risk, which may be
reflected in credit ratings. There is a possibility that the credit rating of a
fixed-income security may be downgraded after purchase, which may adversely
affect the value of the security.

Capital Controls Risk. Adverse economic conditions, such as unfavorable or
volatile currency exchange rates and interest rates, political events or other
conditions may cause the Chinese government to intervene and impose "capital
controls." Capital controls include the prohibition of, or restrictions on, the
ability to transfer currency, securities or other assets. In addition, this
intervention may lead to levies placed on profits repatriated by foreign
entities (such as the Fund). The Chinese government's imposition of capital
controls can impact the ability of the Fund to buy, sell or otherwise transfer
securities or currency, may adversely affect the trading market and price for
Shares, and may cause the Fund to decline in value.

Interest Rate Risk. Interest rate risk is the risk that fixed-income securities
will decline in value because of changes in interest rates. As interest rates
rise, the value of certain fixed-income securities decreases. Similarly, if
interest rates decline, the value of certain fixed-income securities may
increase. Fixed-income securities with longer maturities typically are more
sensitive to changes in interest rates, making them more volatile than
securities with shorter maturities.

Offshore Investor Risk. There are special risks associated with investing in
securities designed to provide exposure to Chinese Yuan, such as
Yuan-denominated bonds in which the Fund will invest. The Chinese government
maintains strict currency controls and regularly intervenes in the currency
market. The Chinese government's actions may not be transparent or predictable.
As a result, the value of the Yuan, and the value of Yuan-denominated
securities, may change quickly and arbitrarily. These limitations and
restrictions may impact the availability, liquidity, and pricing of securities
designed to provide offshore investors with exposure to Chinese markets. As a
result, returns achieved by offshore investors, such as the Fund, could differ
from those available to domestic investors in China.

Currency Risk. The Fund invests at least 80% of its assets in Chinese
Yuan-denominated bonds issued and settled outside of mainland China. Because the
Fund's net asset value ("NAV") is determined in U.S. dollars, the NAV could
decline if the currency of the non-U.S. market in which the Fund invests
depreciates against the U.S. dollar, even if the value of the Fund's holdings
increases, as measured in the foreign currency, including securities denominated
in the Chinese Yuan. The Yuan currently is not a freely convertible currency.
The government of China maintains strict currency controls. As a result, the
value of the Yuan, and the value of securities designed to provide exposure to
the Yuan, such as Yuan-denominated bonds issued by offshore issuers, can change
quickly. These and other factors could have a negative impact on the Fund's
performance and increase the volatility of an investment in the Fund. The
Chinese government's policies on currency, control and repatriation restrictions
are subject to change, and the Fund's or the shareholders' position may be
adversely affected. In addition, if the Chinese currencies, the Renminbi, which
is traded in mainland China, and the Yuan, which is traded offshore (traded as
"CNH" in Hong Kong), diverge in value, that divergence could negatively impact
the Fund.

Liquidity Risk. Liquidity risk exists when a particular investment is difficult
to purchase or sell. If the Fund invests in illiquid securities or current
portfolio securities become illiquid, it may reduce the returns of the Fund
because the Fund may be unable to sell the illiquid securities at an
advantageous time or price. The Underlying Index consists of Yuan-denominated
debt securities issued or distributed outside mainland China, however, the
quantity of such debt securities that are available for inclusion in the
Underlying Index, and thus for the Fund to invest in, currently is limited.

Call Risk. If interest rates fall, it is possible that issuers of callable
securities with high interest coupons will "call" (or prepay) their bonds before
their maturity date. If a call were exercised by the issuer during a period of
declining interest rates, the Fund likely will need to replace such called
security with a lower yielding security. If that were to happen, the Fund's net
investment income could fall.

Market Risk. Securities in the Underlying Index are subject to market
fluctuations. You should anticipate that the value of the Shares will decline,
more or less, in correlation with any decline in the value of the securities in
the Underlying Index.

Market Trading Risk. The Fund faces numerous market trading risks, including the
potential lack of an active market for the Shares, losses from trading in
secondary markets, and disruption in the creation/redemption process of the
Fund. Any of these factors may lead to the Shares trading at a premium or
discount to the Fund's NAV.

Sampling Risk. The Fund's use of a representative sampling approach will result
in it holding a smaller number of bonds than are in the Underlying Index. As a
result, an adverse development to an issuer of bonds that the Fund holds could
result in a greater decline in NAV than would be the case if the Fund held all
of the bonds in the Underlying Index. To the extent the assets in the Fund are
smaller, these risks will be greater.

Non-Correlation Risk. The Fund's return may not match the return of the
Underlying Index for a number of reasons. For example, the Fund incurs operating
expenses not applicable to the Underlying Index, and incurs costs in buying and
selling securities, especially when rebalancing the Fund's securities holdings
to reflect changes in the composition of the Underlying Index. The Fund's use of
a representative sampling approach may cause the Fund not to be as
well-correlated with the return of the Underlying Index as would be the case if
the Fund purchased all of the securities in the Underlying Index in the
proportions represented in the Underlying Index. In addition, the performance of
the Fund and the Underlying Index may vary due to asset valuation differences
and differences between the Fund's portfolio and the Underlying Index resulting
from legal restrictions, cost or liquidity constraints.

Concentration Risk. A significant percentage of the Underlying Index may be
composed of issuers in a single industry or sector of the economy. If the Fund
is focused in an industry or sector, it may present more risks than if it were
broadly diversified over numerous industries and sectors of the economy. At
times, such industry or group of industries may be out of favor and underperform
other industries of the market as a whole.

Cash Redemption Risk. Unlike most exchange-traded funds ("ETFs"), the Fund
currently intends to effect redemptions principally for cash and partially
in-kind, rather than primarily in-kind redemptions because of the nature of the
Fund's investments. As such, investments in Shares may be less tax efficient
than investments in conventional ETFs.

Non-Diversified Fund Risk. Because the Fund is non-diversified and can invest a
greater portion of its assets in securities of individual issuers than a
diversified fund, 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-Investment Grade Securities Risk. Non-investment grade securities and
unrated securities of comparable credit quality are subject to the increased
risk of an issuer's inability to meet principal and interest payment
obligations. These securities may be subject to greater price volatility due to
such factors as specific corporate developments, interest rate sensitivity,
negative perceptions of the non-investment grade securities markets generally,
real or perceived adverse economic and competitive industry conditions and less
secondary market liquidity. If the issuer of non-investment grade securities
defaults, the Fund may incur additional expenses to seek recovery.

Sovereign Debt Risk. Investments in sovereign debt securities involve special
risks. The governmental authority that controls the repayment of the debt may be
unwilling or unable to repay the principal and/or interest when due in
accordance with the terms of such securities due to the extent of its foreign
reserves; the availability of sufficient foreign exchange on the date a payment
is due; the relative size of the debt service burden to the economy as a whole;
or the government debtor's policy towards the International Monetary Fund and
the political constraints to which a government debtor may be subject. If an
issuer of sovereign debt defaults on payments of principal and/or interest, the
Fund may have limited legal recourse against the issuer and/or guarantor. In
certain cases, remedies must be pursued in the courts of the defaulting party
itself, and the Fund's ability to obtain recourse may be limited.

Index Risk. Unlike many investment companies, the Fund does not utilize an
investing strategy that seeks returns in excess of the Underlying Index.
Therefore, the Fund would not necessarily buy or sell a security unless that
security is added or removed, respectively, from its Underlying Index, even if
that security generally is underperforming.

Issuer-Specific Changes. The value of an individual security or particular type
of security may be more volatile than the market as a whole and may perform
differently from the value of the market as a whole.

The Shares will change in value, and you could lose money by investing in the
Fund. The Fund may not achieve its investment objective. An investment in the
Fund is not a deposit with a bank and is not insured or guaranteed by the
Federal Deposit Insurance Corporation or any other government agency.

Performance

The Fund has not yet commenced operations and therefore does not have a
performance history. Once available, the Fund's performance information
will be accessible on the Fund's website at www.InvescoPowerShares.com
and will provide some indication of the risks of investing in the Fund.

[1] Other Expenses are based on estimated amounts for the current fiscal year.