N-CSR 1 a10-7702_1ncsr.htm N-CSR

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number			811-21265

PowerShares Exchange-Traded Fund Trust
(Exact name of registrant as specified in charter)

301 W. Roosevelt Road Wheaton, IL					60187
(Address of principal executive offices)					(Zip code)

Andrew Schlossberg President 301 W. Roosevelt Road Wheaton, IL 60187
(Name and address of agent for service)

Registrant’s telephone number, including area code:				800-983-0903

Date of fiscal year end:	April 30

Date of reporting period:		April 30, 2010

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:

2010 Annual Report to Shareholders

April 30, 2010

PowerShares Dynamic MagniQuant Portfolio

PowerShares Dynamic Market Portfolio

PowerShares Dynamic OTC Portfolio

PowerShares FTSE RAFI US 1000 Portfolio

PowerShares FTSE RAFI US 1500 Small-Mid Portfolio

PowerShares NXQ Portfolio

Table of Contents

The Market Environment					2

Manager's Analysis					4

Frequency Distribution of Discounts & Premiums					16

Fees and Expenses					18

Broad Market Portfolios

Schedules of Investments

PowerShares Dynamic MagniQuant Portfolio					19

PowerShares Dynamic Market Portfolio					22

PowerShares Dynamic OTC Portfolio					24

PowerShares FTSE RAFI US 1000 Portfolio					26

PowerShares FTSE RAFI US 1500 Small-Mid Portfolio					37

PowerShares NXQ Portfolio					53

Statements of Assets and Liabilities					54

Statements of Operations					56

Statements of Changes in Net Assets					58

Financial Highlights					60

Notes to Financial Statements					63

Report of Independent Registered Public Accounting Firm					74

Tax Information					75

Proxy Results					76

Trustees and Officers					77

Board Considerations Regarding Continuation of Investment Advisory Agreements					84

The Market Environment

For the fiscal year ended April 30, 2010 (the "reporting period"), the U.S. markets recouped more than their previous year's losses. With the government's bank support programs firmly in place, the U.S. economy rebounded from its worst recession since the 1920s and U.S. equity markets rallied accordingly during the same period with the following performance: S&P 500^® Index returned 38.82%, Dow Jones Industrial Index returned 38.61% and NASDAQ-100^® Index returned 44.44%. As a result of the tremendous government assistance provided to U.S. banks, insurers, and automotive companies, consumer discretionary and financial stocks surged the most out of the ten S&P 500^® sectors. Despite the sharp rise in U.S. equity prices, almost $23 billion in outflows occurred during this timeframe (based on Investment Company Institute statistics) as investors re-allocated their assets to income-generating products.

Interest rates remained at historically low levels, which supported bond prices during the reporting period. With the exception of U.S. Treasuries, fixed income markets enjoyed unprecedented gains in both total returns and inflows over the reporting period. Despite a newfound aversion to equity risk, investors put the most money to work in the riskiest bond sectors. As a result, higher beta bond sectors performed the best during the reporting period. For example, the Bank of America Merrill Lynch (BAML) U.S. High Yield Master II Index returned 44.20%, while the BAML U.S. Corporate, Government & Mortgage Index (prev. Domestic Master) returned 7.84% during the reporting period. Municipal bonds benefited from low supply and the establishment of the Build America Bond (BAB) program. As a result, the BAML Municipal Master Index returned 9.73% and the BAML BAB Index returned 9.60%. According to ICI statistics, domestic bond funds grew at a record pace during the reporting period, experiencing $353.5 billion in taxable inflows and $68.5 billion in municipal bond inflows.

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Manager's Analysis

PowerShares Dynamic MagniQuant Portfolio (ticker: PIQ)

The PowerShares Dynamic MagniQuant Portfolio (the "Fund") seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of the Top 200 Dynamic Intellidex^SM Index (the "Index").

For the fiscal year ended April 30, 2010, the Fund returned 34.54%. Over this same year, the Index returned 35.74%, while the S&P 500^® Equal Weight Index returned 51.65%. The Fund benefited from positive performance in information technology, consumer discretionary and health care sectors. Fund performance was positive within each sector for the reporting period.

Sector Breakdown (% of the Fund's

Net Assets) as of April 30, 2010

Consumer Discretionary	30.7
Information Technology	21.0
Industrials	14.6
Materials	10.3
Health Care	9.1
Consumer Staples	8.0
Financials	4.7
Telecommunication Services	0.6
Energy	0.5
Utilities	0.5
Money Market Fund	0.2
Other	(0.2	)

Style Allocation (% of the Fund's

Total Investments) as of April 30, 2010

Small-Cap Value					26.9
Mid-Cap Value					19.0
Mid-Cap Growth					17.0
Large-Cap Growth					13.5
Small-Cap Growth					12.0
Large-Cap Value					11.6

Top Ten Fund Holdings (% of the Fund's

Net Assets) as of April 30, 2010

*Security*
Select Comfort Corp.					0.7
Dollar Thrifty Automotive Group, Inc.					0.7
Phillips-Van Heusen Corp.					0.7
Entercom Communications Corp.					0.6
PolyOne Corp.					0.6
KapStone Paper and Packaging Corp.					0.6
SanDisk Corp.					0.6
RF Micro Devices, Inc.					0.6
Maidenform Brands, Inc.					0.6
Clearwater Paper Corp.					0.6
Total					6.3

Manager's Analysis (Continued)

PowerShares Dynamic MagniQuant Portfolio (ticker: PIQ)

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

Fund Performance History (%)							As of April 30, 2010
	Avg. Ann.^††						Fund Inception^†
	1 Year			3 Year			Avg. Ann.^††			Cumulative
Index
Top 200 Dynamic Intellidex^SM Index		35.74	%		-5.68	%		-1.97	%		-6.81	%
S&P 500^® Equal Weight Index		51.65	%		-2.48	%		1.79	%		6.56	%
Russell 3000^® Index		40.90	%		-4.56	%		-0.54	%		-1.92	%
Fund
NAV Return		34.54	%		-6.39	%		-2.69	%		-9.22	%
Share Price Return		34.62	%		-6.40	%		-2.66	%		-9.11	%

Fund Inception: October 12, 2006

Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2011. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.87%. In the Financial Highlights section of this Shareholder Report, the Fund's total net (subsidized) operating expense ratio was determined to be 0.65% while the Fund's total gross operating expense ratio was 0.98%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.

Index performance results are based upon a hypothetical investment in its constituent securities. Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index does not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the actual results 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 S&P 500^® Equal Weight Index and Russell 3000^® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 500 and 2,942 common stocks, respectively.

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

^†† Average annualized.

Manager's Analysis

PowerShares Dynamic Market Portfolio (ticker: PWC)

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

For the fiscal year ended April 30, 2010, the Fund returned 29.75%. Over this same year, the Index returned 30.76%, while the Russell 3000^® Index returned 40.90%. The Fund benefited from positive performance in information technology, health care and consumer discretionary sectors. Fund performance was positive within each sector.

Sector Breakdown (% of the Fund's

Net Assets) as of April 30, 2010

Information Technology	18.3
Financials	14.3
Health Care	12.1
Consumer Discretionary	11.8
Industrials	11.4
Energy	10.9
Consumer Staples	10.1
Utilities	4.6
Materials	4.1
Telecommunication Services	2.3
Money Market Fund	0.1
Other	(0.0	)

Style Allocation (% of the Fund's

Total Investments) as of April 30, 2010

Large-Cap Value					38.1
Large-Cap Growth					24.2
Mid-Cap Growth					12.8
Small-Cap Growth					10.4
Mid-Cap Value					9.0
Small-Cap Value					5.5

Top Ten Fund Holdings (% of the Fund's

Net Assets) as of April 30, 2010

*Security*
Occidental Petroleum Corp.					3.8
Colgate-Palmolive Co.					3.5
National Oilwell Varco, Inc.					3.4
General Mills, Inc.					3.4
Edison International					3.2
International Paper Co.					3.1
Intel Corp.					2.7
Texas Instruments, Inc.					2.6
Microsoft Corp.					2.6
3M Co.					2.6
Total					30.9

Manager's Analysis (Continued)

PowerShares Dynamic Market Portfolio (ticker: PWC)

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

Fund Performance History (%)										As of April 30, 2010
	Avg. Ann.^††									Fund Inception^†
	1 Year			3 Year			5 Year			Avg. Ann.^††			Cumulative
Index
Dynamic Market Intellidex^SM Index		30.76	%		-7.38	%		2.01	%		7.41	%		64.95	%
S&P 500^® Index		38.82	%		-5.04	%		2.63	%		5.84	%		48.76	%
Russell 3000^® Index		40.90	%		-4.56	%		3.28	%		6.68	%		57.29	%
Fund
NAV Return		29.75	%		-7.89	%		1.56	%		6.79	%		58.35	%
Share Price Return		29.80	%		-7.88	%		1.58	%		6.78	%		58.33	%

Fund Inception: May 1, 2003

Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay during previous fiscal periods certain Fund expenses through August 31, 2011. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.60%. In the Financial Highlights section of this Shareholder Report, the Fund's total net (subsidized) and total gross operating expense ratio was determined to be 0.60%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.

The S&P 500^® Index and Russell 3000^® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 500 and 2,942 common stocks, respectively.

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

^†† Average annualized.

Manager's Analysis

PowerShares Dynamic OTC Portfolio (ticker: PWO)

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

For the fiscal year ended April 30, 2010, the Fund returned 37.73%. Over this same year, the Index returned 38.67%, while the NASDAQ-100^® Index returned 44.44%. The Fund benefited from positive performance in information technology, health care and consumer discretionary sectors. Fund performance was positive within each sector for the reporting period.

Sector Breakdown (% of the Fund's

Net Assets) as of April 30, 2010

Information Technology	53.1
Consumer Discretionary	14.5
Health Care	14.5
Financials	7.8
Industrials	5.4
Consumer Staples	2.0
Telecommunication Services	1.1
Energy	0.9
Materials	0.7
Money Market Fund	0.1
Other	(0.1	)

Style Allocation (% of the Fund's

Total Investments) as of April 30, 2010

Mid-Cap Growth					38.1
Large-Cap Growth					26.0
Small-Cap Value					15.2
Small-Cap Growth					15.1
Mid-Cap Value					5.6

Top Ten Fund Holdings (% of the Fund's

Net Assets) as of April 30, 2010

*Security*
SanDisk Corp.					3.8
Apple, Inc.					3.6
F5 Networks, Inc.					3.4
Intel Corp.					3.1
Cisco Systems, Inc.					3.1
VeriSign, Inc.					3.1
BMC Software, Inc.					3.0
Microsoft Corp.					3.0
Fiserv, Inc.					3.0
Automatic Data Processing, Inc.					2.9
Total					32.0

Manager's Analysis (Continued)

PowerShares Dynamic OTC Portfolio (ticker: PWO)

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

Fund Performance History (%)										As of April 30, 2010
	Avg. Ann.^††									Fund Inception^†
	1 Year			3 Year			5 Year			Avg. Ann.^††			Cumulative
Index
Dynamic OTC Intellidex^SM Index		38.67	%		-5.75	%		1.87	%		7.46	%		65.43	%
NASDAQ Composite Index		43.32	%		-0.85	%		5.07	%		7.70	%		68.08	%
NASDAQ-100^® Index		44.44	%		2.93	%		7.66	%		9.34	%		86.78	%
Fund
NAV Return		37.73	%		-6.30	%		1.35	%		6.82	%		58.66	%
Share Price Return		37.73	%		-6.31	%		1.34	%		6.80	%		58.46	%

Fund Inception: May 1, 2003

Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2011. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.74%. In the Financial Highlights section of this Shareholder Report, the Fund's total net (subsidized) operating expense ratio was determined to be 0.60% while the Fund's total gross operating expense ratio was 0.85%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.

The Index performance results are based upon a hypothetical investment in its constituent securities. Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index does not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the actual results 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 NASDAQ Composite Index and NASDAQ-100^® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 3,087 and 100 common stocks, respectively.

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

^†† Average annualized.

Manager's Analysis

PowerShares FTSE RAFI US 1000 Portfolio (ticker: PRF)

The PowerShares FTSE RAFI US 1000 Portfolio (the "Fund") seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of the FTSE RAFI U.S. 1000 Index (the "Index").

For the fiscal year ended April 30, 2010, the Fund returned 54.57%. Over this same year, the Index returned 55.05%, while the S&P 500^® Index returned 38.82%. The Fund benefited from positive performance in the financials, consumer discretionary, and industrials sectors. The Fund did not suffer from negative performance in any of the sectors in which it was invested.

Sector Breakdown (% of the Fund's

Net Assets) as of April 30, 2010

Financials					21.9
Industrials					11.9
Energy					11.7
Consumer Discretionary					11.6
Information Technology					10.9
Consumer Staples					9.5
Health Care					8.9
Utilities					5.5
Telecommunication Services					4.4
Materials					3.7

Style Allocation (% of the Fund's

Total Investments) as of April 30, 2010

Large-Cap Value					42.7
Large-Cap Growth					30.7
Mid-Cap Value					13.4
Mid-Cap Growth					8.2
Small-Cap Value					3.3
Small-Cap Growth					1.7

Top Ten Fund Holdings (% of the Fund's

Net Assets) as of April 30, 2010

*Security*
Exxon Mobil Corp.					2.9
General Electric Co.					2.5
Bank of America Corp.					2.3
AT&T, Inc.					2.1
Chevron Corp.					1.8
Microsoft Corp.					1.7
Citigroup, Inc.					1.7
JPMorgan Chase & Co.					1.6
Wells Fargo & Co.					1.5
ConocoPhillips					1.5
Total					19.6

Manager's Analysis (Continued)

PowerShares FTSE RAFI US 1000 Portfolio (ticker: PRF)

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

Fund Performance History (%)							As of April 30, 2010
	Avg. Ann.^††						Fund Inception^†
	1 Year			3 Year			Avg. Ann.^††			Cumulative
Index
FTSE RAFI U.S. 1000 Index		55.05	%		-2.48	%		3.60	%		16.66	%
S&P 500^® Index		38.82	%		-5.04	%		0.95	%		4.19	%
Russell 1000^® Index		40.21	%		-4.71	%		1.22	%		5.37	%
Fund
NAV Return		54.57	%		-2.87	%		3.08	%		14.12	%
Share Price Return		54.66	%		-2.87	%		3.15	%		14.48	%

Fund Inception: December 19, 2005

Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2011. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.46%. In the Financial Highlights section of this Shareholder Report, the Fund's total net (subsidized) operating expense ratio was determined to be 0.39% while the Fund's total gross operating expense ratio was 0.45%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.

The S&P 500^® Index and Russell 1000^® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 500 and 1,000 common stocks, respectively.

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

^†† Average annualized.

Manager's Analysis

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

The PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (the "Fund") seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of the FTSE RAFI U.S. 1500 Small-Mid Index (the "Index").

For the fiscal year ended April 30, 2010, the Fund returned 72.38%. Over this same year, the Index returned 72.14%, while the S&P Small Cap 600^® Index returned 47.79%. The Fund benefited from positive performance in the consumer discretionary, information technology, and industrials sectors. The Fund was positive within each sector in which it was invested.

Sector Breakdown (% of the Fund's

Net Assets) as of April 30, 2010

Financials					22.0
Industrials					19.1
Consumer Discretionary					18.7
Information Technology					15.9
Health Care					7.0
Energy					5.9
Materials					5.4
Consumer Staples					2.9
Utilities					1.7
Telecommunication Services					1.4
Money Market Fund					0.0
Other					0.0

Style Allocation (% of the Fund's

Total Investments) as of April 30, 2010

Small-Cap Value					50.0
Small-Cap Growth					38.6
Mid-Cap Growth					9.2
Mid-Cap Value					1.9
Large-Cap Growth					0.2
Large-Cap Value					0.1

Top Ten Fund Holdings (% of the Fund's

Net Assets) as of April 30, 2010

*Security*
NCI Building Systems, Inc.					0.7
FelCor Lodging Trust, Inc.					0.3
Strategic Hotels & Resorts, Inc.					0.3
NACCO Industries, Inc.					0.3
Citizens Republic Bancorp, Inc.					0.2
PMI Group, Inc. (The)					0.2
Ashford Hospitality Trust, Inc.					0.2
USEC, Inc.					0.2
Kilroy Realty Corp.					0.2
PolyOne Corp.					0.2
Total					2.8

Manager's Analysis (Continued)

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

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

Fund Performance History (%)							As of April 30, 2010
	Avg. Ann.^††						Fund Inception^†
	1 Year			3 Year			Avg. Ann.^††			Cumulative
Index
FTSE RAFI U.S. 1500 Small-Mid Index		72.14	%		2.57	%		5.97	%		23.27	%
S&P Small Cap 600^® Index		47.79	%		-2.03	%		1.90	%		6.98	%
Russell 2000^® Index		48.95	%		-2.79	%		1.05	%		3.81	%
Fund
NAV Return		72.38	%		2.47	%		5.67	%		22.02	%
Share Price Return		72.59	%		2.47	%		5.66	%		21.97	%

Fund Inception: September 20, 2006

Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2011. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.66%. In the Financial Highlights section of this Shareholder Report, the Fund's total net (subsidized) operating expense ratio was determined to be 0.39% while the Fund's total gross operating expense ratio was 0.51%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.

The S&P Small Cap 600^® Index and Russell 2000^® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 600 and 2,000 common stocks, respectively.

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

^†† Average annualized.

Manager's Analysis

PowerShares NXQ Portfolio (ticker: PNXQ)

The PowerShares NXQ Portfolio (the "Fund") seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of the NASDAQ Q-50 Index^SM (the "Index").

For the fiscal year ended April 30, 2010, the Fund returned 56.81%. Over this same year, the Index returned 55.06%, while the NASDAQ-100^® Index returned 44.44%. The Fund benefited from positive performance in information technology, consumer discretionary and health care sectors. Fund performance was positive within each sector for the reporting period. The Fund outperformed the Index due to positive trading slippage during the June rebalance.

Sector Breakdown (% of the Fund's

Net Assets) as of April 30, 2010

Information Technology	36.0
Health Care	20.0
Consumer Discretionary	19.9
Industrials	7.5
Consumer Staples	6.4
Telecommunication Services	4.3
Materials	4.1
Energy	1.9
Other	(0.1	)

Style Allocation (% of the Fund's

Total Investments) as of April 30, 2010

Mid-Cap Growth					79.9
Large-Cap Growth					11.2
Mid-Cap Value					8.9

Top Ten Fund Holdings (% of the Fund's

Net Assets) as of April 30, 2010

*Security*
Micron Technology, Inc.					3.7
Cree, Inc.					3.6
Dendreon Corp.					3.4
Whole Foods Market, Inc.					3.1
Akamai Technologies, Inc.					3.1
Perrigo Co.					2.6
F5 Networks, Inc.					2.6
Dollar Tree, Inc.					2.5
Randgold Resources Ltd.					2.5
Netflix, Inc.					2.5
Total					29.6

Manager's Analysis (Continued)

PowerShares NXQ Portfolio (ticker: PNXQ)

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

Fund Performance History (%)				As of April 30, 2010
	Avg. Ann.^††			Fund Inception^†
	1 Year			Avg. Ann.^††			Cumulative
Index
NASDAQ Q-50 Index^SM		55.06	%		2.98	%		6.28	%
NASDAQ-100^® Index		44.44	%		6.38	%		13.75	%
S&P 500^® Index		38.82	%		-2.83	%		-5.80	%
Fund
NAV Return		56.81	%		2.73	%		5.74	%
Share Price Return		57.02	%		3.09	%		6.52	%

Fund Inception: April 3, 2008

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

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

^†† Average annualized.

Frequency Distribution of Discounts & Premiums

Since Inception through April 30, 2010

					Closing Price Above NAV (bps)
Ticker	Fund Name	Inception	Trading Days		0-24		25-49		50-99		100-149		150-199		200+
PIQ	PowerShares Dynamic MagniQuant Portfolio	10/12/06		893		329		21		1		1		0		0
PWC	PowerShares Dynamic Market Portfolio	05/01/03		1649		790		71		12		2		0		0
PWO	PowerShares Dynamic OTC Portfolio	05/01/03		1649		753		38		16		1		1		0
PRF	PowerShares FTSE RAFI US 1000 Portfolio	12/19/05		1089		480		14		5		0		0		1
PRFZ	PowerShares FTSE RAFI US 1500 Small-Mid Portfolio	09/20/06		909		366		22		3		0		2		1
PNXQ	PowerShares NXQ Portfolio	04/03/08		524		159		4		0		0		0		0

	Closing Price Below NAV (bps)
Ticker	-0-24		-25-49		-50-99		-100-149		-150-199		-200+
PIQ		528		10		3		0		0		0
PWC		760		10		4		0		0		0
PWO		818		18		4		0		0		0
PRF		555		24		8		2		0		0
PRFZ		480		33		2		0		0		0
PNXQ		353		7		1		0		0		0

Fees and Expenses

As a shareholder of a Fund of the PowerShares Exchange-Traded Fund Trust, you incur advisory fees and other Fund expenses. 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, 2010.

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, 2009		Ending Account Value April 30, 2010		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During the Six-Month Period⁽¹⁾
PowerShares Dynamic MagniQuant Portfolio Actual	$	1,000.00	$	1,211.16		0.65	%	$	3.56
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.57		0.65	%	$	3.26
PowerShares Dynamic Market Portfolio Actual	$	1,000.00	$	1,158.66		0.60	%	$	3.21
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.82		0.60	%	$	3.01
PowerShares Dynamic OTC Portfolio Actual	$	1,000.00	$	1,224.56		0.60	%	$	3.31
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.82		0.60	%	$	3.01
PowerShares FTSE RAFI US 1000 Portfolio Actual	$	1,000.00	$	1,204.37		0.39	%	$	2.13
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.86		0.39	%	$	1.96
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio Actual	$	1,000.00	$	1,325.01		0.39	%	$	2.25
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.86		0.39	%	$	1.96
PowerShares NXQ Portfolio Actual	$	1,000.00	$	1,301.17		0.70	%	$	3.99
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.32		0.70	%	$	3.51

(1) Expenses are calculated using the annualized expense ratio, which represents the ongoing expenses as a percentage of net assets for the six months ended April 30, 2010. Expenses are calculated by multiplying the Fund's annualized expense ratio by the average account value for the period; then multiplying the result by 181 and then dividing the result by 365. Expense ratios for the most recent half-year may differ from expense ratios based on the annualized data in the Financial Highlights.

Schedule of Investments

PowerShares Dynamic MagniQuant Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—30.7%
	6,383	American Greetings Corp., Class A	$	156,767
	7,966	Big 5 Sporting Goods Corp.		135,024
	3,634	Big Lots, Inc.*		138,819
	3,185	Children's Place Retail Stores, Inc. (The)*		145,937
	3,341	Coach, Inc.		139,487
	5,387	Collective Brands, Inc.*		126,325
	6,940	Cooper Tire & Rubber Co.		147,267
	2,787	Cracker Barrel Old Country Store, Inc.		137,594
	4,897	Dress Barn, Inc. (The)*		135,549
	5,254	Drew Industries, Inc.*		134,765
	4,520	DSW, Inc., Class A*		136,504
	11,969	Entercom Communications Corp., Class A*		174,269
	8,035	Gannett Co., Inc.		136,756
	5,662	Gap, Inc. (The)		140,021
	2,985	Guess?, Inc.		136,922
	4,694	Hanesbrands, Inc.*		133,638
	5,036	Helen of Troy Ltd.*		136,022
	6,071	Hillenbrand, Inc.		149,225
	2,892	J.Crew Group, Inc.*		134,391
	3,797	Jarden Corp.		121,960
	3,216	Jo-Ann Stores, Inc.*		141,890
	2,900	John Wiley & Sons, Inc., Class A		122,583
	7,068	Maidenform Brands, Inc.*		161,292
	5,535	Mattel, Inc.		127,582
	25,254	McClatchy Co. (The), Class A*		137,634
	1,907	McDonald's Corp.		134,615
	3,560	McGraw-Hill Cos., Inc. (The)		120,043
	1,801	NIKE, Inc., Class B		136,714
	3,296	Nordstrom, Inc.		136,224
	4,472	PetSmart, Inc.		147,889
	2,797	Phillips-Van Heusen Corp.		176,239
	2,661	Polaris Industries, Inc.		157,451
	1,523	Polo Ralph Lauren Corp.		136,918
	8,627	RC2 Corp.*		158,478
	13,615	Retail Ventures, Inc.*		147,314
	4,140	Scholastic Corp.		111,821
	15,808	Select Comfort Corp.*		178,947
	15,103	Service Corp. International		135,625
	1,921	Sherwin-Williams Co. (The)		149,972
	3,961	Skechers U.S.A., Inc., Class A*		151,904
	5,314	Starbucks Corp.		138,058
	14,899	Stein Mart, Inc.*		141,243
	4,286	Tempur-Pedic International, Inc.*		144,438
	3,587	Thor Industries, Inc.		128,092
	2,742	Tiffany & Co.		132,932
	6,584	Timberland Co. (The), Class A*		141,556
	2,924	TJX Cos., Inc. (The)		135,498
	4,530	TRW Automotive Holdings Corp.*		145,911
	2,604	Tupperware Brands Corp.		132,986
	2,315	UniFirst Corp.		113,134

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	3,779	Urban Outfitters, Inc.*	$	141,750
	1,573	VF Corp.		135,939
	4,106	Viacom, Inc., Class B*		145,065
	3,897	Walt Disney Co. (The)		143,566
	2,916	Warnaco Group, Inc. (The)*		139,501
	1,447	Whirlpool Corp.		157,535
	4,415	Wolverine World Wide, Inc.		135,143
	5,294	Wyndham Worldwide Corp.		141,932
	3,610	Yum! Brands, Inc.		153,136
				8,315,792
		Consumer Staples—8.0%
	2,325	Brown-Forman Corp., Class B		135,269
	1,468	Colgate-Palmolive Co.		123,459
	4,977	ConAgra Foods, Inc.		121,787
	15,103	Darling International, Inc.*		143,327
	3,834	Dr Pepper Snapple Group, Inc.		125,487
	6,755	Elizabeth Arden, Inc.*		123,009
	2,100	Energizer Holdings, Inc.*		128,310
	2,025	Estee Lauder Cos., Inc. (The), Class A		133,488
	1,691	General Mills, Inc.		120,365
	2,652	H.J. Heinz Co.		124,299
	8,963	Inter Parfums, Inc.		154,881
	2,004	Kimberly-Clark Corp.		122,765
	2,681	NBTY, Inc.*		109,063
	4,555	Nu Skin Enterprises, Inc., Class A		136,923
	1,924	Procter & Gamble Co. (The)		119,596
	2,251	Wal-Mart Stores, Inc.		120,766
	3,887	WD-40 Co.		136,939
				2,179,733
		Energy—0.5%
	4,238	Alliance Holdings GP LP		136,548
		Financials—4.7%
	2,461	Aflac, Inc.		125,413
	3,187	American Express Co.		146,984
	4,705	American Financial Group, Inc.		138,468
	9,125	Calamos Asset Management, Inc., Class A		113,606
	3,176	Cash America International, Inc.		117,703
	3,005	Commerce Bancshares, Inc.		124,467
	6,170	EZCORP, Inc., Class A*		127,781
	7,098	Progressive Corp. (The)		142,599
	3,277	Safety Insurance Group, Inc.		122,199
	2,913	World Acceptance Corp.*		102,771
				1,261,991
		Health Care—9.1%
	2,083	Allergan, Inc.		132,666
	4,341	AmerisourceBergen Corp.		133,920
	5,891	AmSurg Corp., Class A*		122,061
	4,966	Bristol-Myers Squibb Co.		125,590
	9,738	Bruker Corp.*		148,894
	6,226	Cantel Medical Corp.		124,271

See Notes to Financial Statements.

Schedule of Investments (Continued)

PowerShares Dynamic MagniQuant Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	3,584	Cardinal Health, Inc.	$	124,329
	1,976	DaVita, Inc.*		123,362
	18,814	Exelixis, Inc.*		108,745
	6,612	Healthspring, Inc.*		116,371
	2,326	Hospira, Inc.*		125,116
	4,462	Invacare Corp.		117,931
	1,932	Johnson & Johnson		124,228
	2,058	McKesson Corp.		133,379
	2,275	MEDNAX, Inc.*		124,988
	1,225	Mettler-Toledo International, Inc.*		153,713
	3,392	Sirona Dental Systems, Inc.*		141,412
	2,292	Stryker Corp.		131,652
	2,040	Waters Corp.*		146,860
				2,459,488
		Industrials—14.6%
	1,519	3M Co.		134,690
	2,687	A.O. Smith Corp.		138,730
	2,321	Amerco, Inc.*		144,946
	5,432	ATC Technology Corp.*		111,030
	10,386	Comfort Systems USA, Inc.		146,235
	3,844	Crane Co.		138,153
	2,144	Cummins, Inc.		154,861
	6,781	Deluxe Corp.		142,198
	4,052	Dollar Thrifty Automotive Group, Inc.*		178,247
	2,950	Donaldson Co., Inc.		136,585
	1,787	Eaton Corp.		137,885
	5,288	EMCOR Group, Inc.*		151,025
	15,646	Hawaiian Holdings, Inc.*		111,087
	3,031	Honeywell International, Inc.		143,882
	2,598	Hubbell, Inc., Class B		120,729
	3,926	IDEX Corp.		131,914
	2,675	Illinois Tool Works, Inc.		136,693
	2,376	ITT Corp.		132,034
	2,396	Joy Global, Inc.		136,117
	1,332	L-3 Communications Holdings, Inc.		124,635
	3,758	M&F Worldwide Corp.*		115,220
	5,327	McDermott International, Inc.*		146,013
	3,193	Oshkosh Corp.*		123,314
	3,083	Pall Corp.		120,206
	2,018	Parker Hannifin Corp.		139,605
	2,163	Rockwell Collins, Inc.		140,595
	2,073	United Parcel Service, Inc., Class B		143,327
	2,131	United Stationers, Inc.*		130,460
	1,773	United Technologies Corp.		132,886
				3,943,302
		Information Technology—21.0%
	4,982	Altera Corp.		126,344
	2,922	Amphenol Corp., Class A		135,026
	595	Apple, Inc.*		155,366
	4,409	Avnet, Inc.*		140,956

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	9,897	AVX Corp.	$	152,909
	3,304	BMC Software, Inc.*		130,045
	17,072	Brightpoint, Inc.*		138,112
	5,411	CA, Inc.		123,425
	5,003	Cisco Systems, Inc.*		134,681
	2,350	Computer Sciences Corp.*		123,116
	6,904	Corning, Inc.		132,902
	6,050	CSG Systems International, Inc.*		137,456
	6,960	EMC Corp.*		132,310
	2,181	F5 Networks, Inc.*		149,246
	2,524	Fiserv, Inc.*		128,951
	16,252	Global Cash Access Holdings, Inc.*		141,067
	2,692	Harris Corp.		138,584
	3,204	Hewitt Associates, Inc., Class A*		131,332
	2,397	Hewlett-Packard Co.		124,572
	5,929	Intel Corp.		135,359
	957	International Business Machines Corp.		123,453
	8,025	Jabil Circuit, Inc.		122,943
	5,391	Jack Henry & Associates, Inc.		137,578
	18,499	Kulicke & Soffa Industries, Inc.*		151,692
	3,188	Lender Processing Services, Inc.		120,347
	3,610	Lexmark International, Inc., Class A*		133,750
	3,420	Littelfuse, Inc.*		144,427
	13,435	Micron Technology, Inc.*		125,617
	4,247	Microsoft Corp.		129,703
	1,373	MicroStrategy, Inc., Class A*		105,172
	12,296	ModusLink Global Solutions, Inc.*		109,803
	6,688	QLogic Corp.*		129,547
	28,914	RF Micro Devices, Inc.*		162,497
	4,179	SanDisk Corp.*		166,700
	7,359	Sanmina-SCI Corp.*		131,211
	4,250	SYNNEX Corp.*		116,535
	2,842	Tech Data Corp.*		121,922
	6,960	TeleTech Holdings, Inc.*		115,188
	3,993	Teradata Corp.*		116,077
	4,993	Texas Instruments, Inc.		129,868
	6,307	VeriFone Holdings, Inc.*		120,022
	4,884	VeriSign, Inc.*		133,187
	3,151	Western Digital Corp.*		129,475
				5,688,473
		Materials—10.3%
	3,247	Albemarle Corp.		148,258
	2,585	Ashland, Inc.		153,963
	4,188	Cabot Corp.		136,277
	3,902	Celanese Corp., Series A		124,825
	2,522	Clearwater Paper Corp.*		160,601
	2,044	Eastman Chemical Co.		136,784
	1,619	Freeport-McMoRan Copper & Gold, Inc.		122,283
	34,979	Graphic Packaging Holding Co.*		129,072
	5,799	H.B. Fuller Co.		135,987

See Notes to Financial Statements.

Schedule of Investments (Continued)

PowerShares Dynamic MagniQuant Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	2,891	International Flavors & Fragrances, Inc.	$	144,810
	5,254	International Paper Co.		140,492
	13,289	KapStone Paper and Packaging Corp.*		171,428
	1,367	NewMarket Corp.		150,370
	15,312	PolyOne Corp.*		173,179
	1,978	PPG Industries, Inc.		139,192
	5,958	Sealed Air Corp.		128,097
	2,553	Sigma-Aldrich Corp.		151,393
	4,203	W.R. Grace & Co.*		121,425
	1,549	Walter Energy, Inc.		125,175
	5,510	Zep, Inc.		101,604
				2,795,215
		Telecommunication Services—0.6%
	2,774	Atlantic Tele-Network, Inc.		153,069
		Utilities—0.5%
	3,731	Edison International		128,235
		Total Common Stocks and Other Equity Interests (Cost $23,470,612)		27,061,846
		Money Market Fund—0.2%
	51,668	Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $51,668)		51,668
		Total Investments (Cost $23,522,280)—100.2%		27,113,514
		Liabilities in excess of other assets—(0.2%)		(40,393	)
		Net Assets—100.0%	$	27,073,121

Notes to Schedule of Investments:

* Non-income producing security.

See Notes to Financial Statements.

Schedule of Investments

PowerShares Dynamic Market Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks and Other Equity Interests—99.9%
		Consumer Discretionary—11.8%
	36,796	American Greetings Corp., Class A	$	903,710
	45,923	Big 5 Sporting Goods Corp.		778,395
	112,334	Coach, Inc.		4,689,944
	40,006	Cooper Tire & Rubber Co.		848,927
	26,055	DSW, Inc., Class A*		786,861
	190,390	Gap, Inc. (The)		4,708,345
	17,202	Guess?, Inc.		789,056
	29,030	Helen of Troy Ltd.*		784,100
	18,537	Jo-Ann Stores, Inc.*		817,852
	186,147	Mattel, Inc.		4,290,688
	16,127	Phillips-Van Heusen Corp.		1,016,162
	51,926	RCN Corp.*		762,274
	23,870	Scholastic Corp.		644,729
	178,673	Starbucks Corp.		4,641,925
	13,352	UniFirst Corp.		652,512
				27,115,480
		Consumer Staples—10.1%
	21,812	Brown-Forman Corp., Class B		1,269,022
	96,383	Colgate-Palmolive Co.		8,105,810
	46,686	ConAgra Foods, Inc.		1,142,406
	63,372	Elizabeth Arden, Inc.*		1,154,004
	18,989	Estee Lauder Cos., Inc. (The), Class A		1,251,755
	111,009	General Mills, Inc.		7,901,621
	84,091	Inter Parfums, Inc.		1,453,093
	25,151	NBTY, Inc.*		1,023,143
				23,300,854
		Energy—10.9%
	30,715	Alliance Holdings GP LP		989,637
	30,696	Dril-Quip, Inc.*		1,778,219
	184,572	Gulfport Energy Corp.*		2,307,150
	180,309	National Oilwell Varco, Inc.		7,939,005
	98,161	Occidental Petroleum Corp.		8,702,954
	27,783	Oceaneering International, Inc.*		1,819,787
	98,511	Stone Energy Corp.*		1,605,730
				25,142,482
		Financials—14.3%
	75,380	Aflac, Inc.		3,841,365
	97,605	American Express Co.		4,501,543
	30,875	American Financial Group, Inc.		908,651
	59,878	Calamos Asset Management, Inc., Class A		745,481
	20,838	Cash America International, Inc.		772,256
	19,717	Commerce Bancshares, Inc.		816,678
	20,159	Erie Indemnity Co., Class A		933,563
	40,485	EZCORP, Inc., Class A*		838,444
	36,647	Franklin Resources, Inc.		4,237,859
	18,358	GAMCO Investors, Inc., Class A		844,652
	217,350	Progressive Corp. (The)		4,366,562
	16,808	Reinsurance Group of America, Inc.		867,797

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	21,504	Safety Insurance Group, Inc.	$	801,884
	73,536	T. Rowe Price Group, Inc.		4,229,056
	70,877	Travelers Cos., Inc. (The)		3,596,299
	19,111	World Acceptance Corp.*		674,236
				32,976,326
		Health Care—12.1%
	34,809	AmSurg Corp., Class A*		721,242
	57,526	Bruker Corp.*		879,572
	36,780	Cantel Medical Corp.		734,129
	135,838	Cardinal Health, Inc.		4,712,220
	74,895	DaVita, Inc.*		4,675,695
	111,145	Exelixis, Inc.*		642,418
	98,646	Health Management Associates, Inc., Class A*		919,381
	39,059	Healthspring, Inc.*		687,438
	88,180	Hospira, Inc.*		4,743,202
	26,362	Invacare Corp.		696,748
	17,907	Lincare Holdings, Inc.*		836,078
	78,012	McKesson Corp.		5,055,958
	13,441	MEDNAX, Inc.*		738,449
	7,236	Mettler-Toledo International, Inc.*		907,973
	20,036	Sirona Dental Systems, Inc.*		835,301
				27,785,804
		Industrials—11.4%
	66,552	3M Co.		5,901,166
	18,925	A.O. Smith Corp.		977,098
	15,232	Amerco, Inc.*		951,238
	38,252	ATC Technology Corp.*		781,871
	47,761	Deluxe Corp.		1,001,548
	26,592	Dollar Thrifty Automotive Group, Inc.*		1,169,782
	18,302	Hubbell, Inc., Class B		850,494
	27,652	IDEX Corp.		929,107
	26,469	M&F Worldwide Corp.*		811,540
	22,491	Oshkosh Corp.*		868,602
	135,151	Pall Corp.		5,269,538
	15,009	United Stationers, Inc.*		918,851
	77,700	United Technologies Corp.		5,823,615
				26,254,450
		Information Technology—18.3%
	39,107	Avnet, Inc.*		1,250,251
	87,782	AVX Corp.		1,356,232
	151,437	Brightpoint, Inc.*		1,225,125
	53,663	CSG Systems International, Inc.*		1,219,223
	109,129	Hewlett-Packard Co.		5,671,434
	269,976	Intel Corp.		6,163,552
	43,589	International Business Machines Corp.		5,622,981
	71,177	Jabil Circuit, Inc.		1,090,432
	193,393	Microsoft Corp.		5,906,222
	59,327	QLogic Corp.*		1,149,164

See Notes to Financial Statements.

Schedule of Investments (Continued)

PowerShares Dynamic Market Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	256,467	RF Micro Devices, Inc.*	$	1,441,345
	37,698	SYNNEX Corp.*		1,033,679
	25,204	Tech Data Corp.*		1,081,252
	61,738	TeleTech Holdings, Inc.*		1,021,764
	227,343	Texas Instruments, Inc.		5,913,191
	55,943	VeriFone Holdings, Inc.*		1,064,595
				42,210,442
		Materials—4.1%
	20,945	International Flavors & Fragrances, Inc.		1,049,135
	266,484	International Paper Co.		7,125,782
	110,951	PolyOne Corp.*		1,254,856
				9,429,773
		Telecommunication Services—2.3%
	9,327	AboveNet, Inc.*		471,386
	80,430	AT&T, Inc.		2,096,006
	12,993	Atlantic Tele-Network, Inc.		716,954
	58,225	CenturyTel, Inc.		1,986,055
				5,270,401
		Utilities—4.6%
	56,198	DPL, Inc.		1,583,660
	213,314	Edison International		7,331,602
	45,487	Laclede Group, Inc. (The)		1,550,197
				10,465,459
		Total Common Stocks and Other Equity Interests (Cost $212,740,957)		229,951,471
		Money Market Fund—0.1%
	231,098	Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $231,098)		231,098
		Total Investments (Cost $212,972,055)—100.0%		230,182,569
		Liabilities in excess of other assets—(0.0%)		(31,908	)
		Net Assets—100.0%	$	230,150,661

Notes to Schedule of Investments:

* Non-income producing security.

See Notes to Financial Statements.

Schedule of Investments

PowerShares Dynamic OTC Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—14.5%
	12,570	Big 5 Sporting Goods Corp.	$	213,062
	5,027	Children's Place Retail Stores, Inc. (The)*		230,337
	5,999	Core-Mark Holding Co., Inc.*		183,089
	7,726	Dress Barn, Inc. (The)*		213,856
	7,945	Helen of Troy Ltd.*		214,594
	40,763	Mattel, Inc.		939,587
	32,926	PetSmart, Inc.		1,088,863
	6,532	Scholastic Corp.		176,429
	24,947	Select Comfort Corp.*		282,400
	10,536	Shoe Carnival, Inc.*		291,426
	39,120	Starbucks Corp.		1,016,338
	27,827	Urban Outfitters, Inc.*		1,043,791
				5,893,772
		Consumer Staples—2.0%
	8,772	Costco Wholesale Corp.		518,250
	16,882	Inter Parfums, Inc.		291,721
				809,971
		Energy—0.9%
	3,137	Alliance Holdings GP LP		101,074
	5,228	Atlas Energy, Inc.*		188,626
	1,698	OYO Geospace Corp.*		84,391
				374,091
		Financials—7.8%
	6,724	Calamos Asset Management, Inc., Class A		83,714
	12,918	Commerce Bancshares, Inc.		535,063
	13,027	Credit Acceptance Corp.*		587,518
	7,386	Dime Community Bancshares		94,171
	13,208	Erie Indemnity Co., Class A		611,662
	4,542	EZCORP, Inc., Class A*		94,065
	4,226	First Cash Financial Services, Inc.*		93,225
	3,649	FPIC Insurance Group, Inc.*		99,326
	4,357	Life Partners Holdings, Inc.		100,647
	6,000	MarketAxess Holdings, Inc.		94,320
	2,416	Safety Insurance Group, Inc.		90,093
	10,323	T. Rowe Price Group, Inc.		593,676
	2,147	World Acceptance Corp.*		75,746
				3,153,226
		Health Care—14.5%
	8,369	AmSurg Corp., Class A*		173,406
	72,655	Bruker Corp.*		1,110,895
	5,373	CorVel Corp.*		178,921
	26,732	Exelixis, Inc.*		154,511
	4,347	Integra LifeSciences Holdings Corp.*		197,484
	2,617	Intuitive Surgical, Inc.*		943,585
	10,153	Kendle International, Inc.*		168,032
	22,615	Lincare Holdings, Inc.*		1,055,894
	4,127	Magellan Health Services, Inc.*		174,201
	16,910	Obagi Medical Products, Inc.*		227,947

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	9,870	Odyssey HealthCare, Inc.*	$	205,592
	18,321	Perrigo Co.		1,118,131
	4,820	Sirona Dental Systems, Inc.*		200,946
				5,909,545
		Industrials—5.4%
	1,711	Amerco, Inc.*		106,852
	8,350	Apogee Enterprises, Inc.		114,729
	5,325	ATC Technology Corp.*		108,843
	15,339	Hawaiian Holdings, Inc.*		108,907
	13,704	Joy Global, Inc.		778,524
	6,074	Sterling Construction Co., Inc.*		106,295
	5,007	Sykes Enterprises, Inc.*		113,809
	12,194	United Stationers, Inc.*		746,517
				2,184,476
		Information Technology—53.1%
	10,166	Acxiom Corp.*		193,967
	46,401	Altera Corp.		1,176,729
	5,540	Apple, Inc.*		1,446,605
	27,244	Automatic Data Processing, Inc.		1,181,300
	7,361	Blackbaud, Inc.		169,671
	30,772	BMC Software, Inc.*		1,211,186
	24,046	Brightpoint, Inc.*		194,532
	50,379	CA, Inc.		1,149,145
	4,844	Cabot Microelectronics Corp.*		185,816
	46,588	Cisco Systems, Inc.*		1,254,149
	8,523	CSG Systems International, Inc.*		193,643
	5,475	Cymer, Inc.*		186,971
	8,508	EchoStar Corp., Class A*		163,439
	20,014	Epicor Software Corp.*		183,729
	20,317	F5 Networks, Inc.*		1,390,292
	23,505	Fiserv, Inc.*		1,200,871
	55,216	Intel Corp.		1,260,581
	8,704	Interactive Intelligence, Inc.*		172,078
	6,685	InterDigital, Inc.*		184,974
	7,593	Jack Henry & Associates, Inc.		193,773
	15,975	JDS Uniphase Corp.*		207,515
	26,055	Kulicke & Soffa Industries, Inc.*		213,651
	4,818	Littelfuse, Inc.*		203,464
	3,472	ManTech International Corp., Class A*		156,344
	39,549	Microsoft Corp.		1,207,826
	1,934	MicroStrategy, Inc., Class A*		148,144
	17,325	ModusLink Global Solutions, Inc.*		154,712
	18,031	Monotype Imaging Holdings, Inc.*		188,244
	7,860	Multi-Fineline Electronix, Inc.*		203,731
	5,423	National Instruments Corp.		187,527
	11,103	Oplink Communications, Inc.*		167,766
	9,848	Parametric Technology Corp.*		183,074
	20,654	PMC - Sierra, Inc.*		182,788
	4,769	Power Integrations, Inc.		183,511
	6,124	Progress Software Corp.*		197,499

See Notes to Financial Statements.

Schedule of Investments (Continued)

PowerShares Dynamic OTC Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	9,416	QLogic Corp.*	$	182,388
	15,352	Radiant Systems, Inc.*		216,003
	40,728	RF Micro Devices, Inc.*		228,891
	38,914	SanDisk Corp.*		1,552,280
	10,365	Sanmina-SCI Corp.*		184,808
	26,792	SMART Modular Technologies (WWH), Inc.*		188,080
	11,425	Super Micro Computer, Inc.*		162,007
	4,003	Tech Data Corp.*		171,729
	9,799	TeleTech Holdings, Inc.*		162,173
	18,698	TIBCO Software, Inc.*		213,157
	45,486	VeriSign, Inc.*		1,240,403
				21,581,166
		Materials—0.7%
	4,411	Sigma-Aldrich Corp.		261,572
		Telecommunication Services—1.1%
	2,693	Atlantic Tele-Network, Inc.		148,600
	7,374	NII Holdings, Inc.*		312,805
				461,405
		Total Common Stocks and Other Equity Interests (Cost $34,792,040)		40,629,224
		Money Market Fund—0.1%
	62,213	Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $62,213)		62,213
		Total Investments (Cost $34,854,253)—100.1%		40,691,437
		Liabilities in excess of other assets—(0.1%)		(56,669	)
		Net Assets—100.0%	$	40,634,768

Notes to Schedule of Investments:

* Non-income producing security.

See Notes to Financial Statements.

Schedule of Investments

PowerShares FTSE RAFI US 1000 Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—11.6%
	4,854	Aaron's, Inc.	$	109,555
	5,189	Abercrombie & Fitch Co., Class A		226,915
	3,695	Advance Auto Parts, Inc.		166,644
	3,828	Amazon.com, Inc.*		524,666
	9,329	American Eagle Outfitters, Inc.		156,820
	5,007	AnnTaylor Stores Corp.*		108,652
	3,279	Apollo Group, Inc., Class A*		188,247
	8,981	ArvinMeritor, Inc.*		137,589
	8,969	Asbury Automotive Group, Inc.*		139,468
	6,200	Autoliv, Inc.		339,450
	22,272	AutoNation, Inc.*		449,894
	1,153	AutoZone, Inc.*		213,317
	5,797	Barnes & Noble, Inc.		127,766
	19,983	Beazer Homes USA, Inc.*		131,288
	8,183	Bed Bath & Beyond, Inc.*		376,091
	26,911	Best Buy Co., Inc.		1,227,142
	4,403	Big Lots, Inc.*		168,195
	5,220	BorgWarner, Inc.		226,235
	12,451	Boyd Gaming Corp.*		158,128
	7,555	Brinker International, Inc.		139,919
	11,202	Brunswick Corp.		234,122
	6,068	Burger King Holdings, Inc.		128,035
	4,557	Cabela's, Inc., Class A*		82,755
	9,014	Cablevision Systems Corp., Class A		247,344
	3,703	Career Education Corp.*		108,387
	11,158	CarMax, Inc.*		274,152
	31,902	Carnival Corp.		1,330,313
	76,104	CBS Corp., Class B		1,233,646
	2,291	Central European Media Enterprises Ltd., Class A (Bermuda)*		77,894
	15,305	Charming Shoppes, Inc.*		86,473
	6,623	Chico's FAS, Inc.*		98,616
	27,551	Clear Channel Outdoor Holdings, Inc., Class A*		319,041
	5,375	Coach, Inc.		224,406
	4,702	Collective Brands, Inc.*		110,262
	184,001	Comcast Corp., Class A		3,587,653
	2,910	Core-Mark Holding Co., Inc.*		88,813
	30,922	D.R. Horton, Inc.		454,244
	7,175	Dana Holding Corp.*		95,858
	6,079	Darden Restaurants, Inc.		272,035
	3,888	Dick's Sporting Goods, Inc.*		113,180
	12,824	Dillard's, Inc., Class A		360,098
	23,609	DIRECTV, Class A*		855,354
	5,825	Discovery Communications, Inc., Class A*		225,428
	6,120	Discovery Communications, Inc., Class C*		204,224
	19,679	DISH Network Corp., Class A		435,890
	3,163	Dollar Tree, Inc.*		192,057
	6,816	Domino's Pizza, Inc.*		105,035

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	2,015	DreamWorks Animation SKG, Inc., Class A*	$	79,975
	19,184	E.W. Scripps Co., Class A*		209,873
	50,817	Eastman Kodak Co.*		311,000
	1,063	Education Management Corp.*		23,205
	16,074	Exide Technologies*		95,480
	10,287	Expedia, Inc.		242,876
	6,857	Family Dollar Stores, Inc.		271,263
	2,445	Federal Mogul Corp.*		46,504
	16,237	Foot Locker, Inc.		249,238
	258,291	Ford Motor Co.*		3,362,949
	11,125	Fortune Brands, Inc.		583,173
	13,902	GameStop Corp., Class A*		337,958
	33,284	Gannett Co., Inc.		566,494
	22,960	Gap, Inc. (The)		567,801
	5,669	Garmin Ltd.		211,907
	10,616	Genuine Parts Co.		454,365
	45,598	Goodyear Tire & Rubber Co. (The)*		612,381
	4,593	Group 1 Automotive, Inc.*		142,613
	15,644	H&R Block, Inc.		286,442
	6,167	Hanesbrands, Inc.*		175,574
	15,642	Harley-Davidson, Inc.		529,169
	2,625	Harman International Industries, Inc.*		103,635
	5,594	Hasbro, Inc.		214,586
	101,080	Home Depot, Inc. (The)		3,563,070
	19,815	Hovnanian Enterprises, Inc., Class A*		140,885
	5,395	Hyatt Hotels Corp., Class A*		222,112
	1,301	Interactive Data Corp.		43,544
	14,902	International Game Technology		314,134
	34,322	Interpublic Group of Cos., Inc. (The)*		305,809
	24,005	J.C. Penney Co., Inc.		700,226
	4,668	Jack in the Box, Inc.*		109,791
	5,184	Jarden Corp.		166,510
	34,135	Johnson Controls, Inc.		1,146,595
	8,561	Jones Apparel Group, Inc.		186,287
	8,790	KB Home		162,879
	13,996	Kohl's Corp.*		769,640
	4,120	Lamar Advertising Co., Class A*		153,346
	6,316	Las Vegas Sands Corp.*		157,016
	11,318	Leggett & Platt, Inc.		277,631
	15,426	Lennar Corp., Class A		306,977
	10,629	Liberty Global, Inc., Series C*		287,833
	11,589	Liberty Global, Inc., Class A*		317,654
	33,221	Liberty Media Corp. - Interactive, Class A*		510,607
	22,788	Limited Brands, Inc.		610,718
	7,059	Live Nation Entertainment, Inc.*		110,756
	19,332	Liz Claiborne, Inc.*		168,962
	75,719	Lowe's Cos., Inc.		2,053,499
	44,170	Macy's, Inc.		1,024,744
	13,178	Marriott International, Inc., Class A		484,423
	15,471	Mattel, Inc.		356,607

See Notes to Financial Statements.

Schedule of Investments (Continued)

PowerShares FTSE RAFI US 1000 Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	30,312	McDonald's Corp.	$	2,139,724
	13,535	McGraw-Hill Cos., Inc. (The)		456,400
	2,611	MDC Holdings, Inc.		100,001
	2,083	Meredith Corp.		74,842
	33,947	MGM MIRAGE*		539,418
	6,857	Mohawk Industries, Inc.*		437,065
	14,967	New York Times Co. (The), Class A*		148,473
	23,725	Newell Rubbermaid, Inc.		404,986
	80,416	News Corp., Class A		1,240,015
	26,513	News Corp., Class B		471,666
	10,076	NIKE, Inc., Class B		764,869
	8,619	Nordstrom, Inc.		356,223
	318	NVR, Inc.*		228,340
	59,514	Office Depot, Inc.*		408,266
	13,638	OfficeMax, Inc.*		259,122
	14,753	Omnicom Group, Inc.		629,363
	4,252	O'Reilly Automotive, Inc.*		207,880
	7,170	Penn National Gaming, Inc.*		221,983
	8,057	Penske Automotive Group, Inc.*		120,694
	5,410	PetSmart, Inc.		178,909
	1,935	Phillips-Van Heusen Corp.		121,924
	1,825	Polaris Industries, Inc.		107,985
	2,628	Polo Ralph Lauren Corp.		236,257
	22,894	Pulte Group, Inc.*		299,682
	32,456	Quiksilver, Inc.*		172,990
	7,881	RadioShack Corp.		169,836
	20,190	Regal Entertainment Group, Class A		344,845
	5,266	Regis Corp.		100,686
	10,698	Rent-A-Center, Inc.*		276,222
	3,573	Ross Stores, Inc.		200,088
	11,771	Royal Caribbean Cruises Ltd.*		421,873
	37,604	Saks, Inc.*		366,639
	1,572	Scripps Networks Interactive, Inc., Class A		71,274
	7,741	Sears Holdings Corp.*		936,274
	14,280	Service Corp. International		128,234
	4,954	Sherwin-Williams Co. (The)		386,759
	4,835	Signet Jewelers Ltd. (United Kingdom)		154,817
	14,533	Sonic Automotive, Inc., Class A*		155,212
	8,276	Stanley Black & Decker, Inc.		514,353
	26,024	Staples, Inc.		612,345
	18,629	Starbucks Corp.		483,981
	8,111	Starwood Hotels & Resorts Worldwide, Inc.		442,131
	38,253	Target Corp.		2,175,448
	7,430	Tenneco, Inc.*		191,471
	2,208	Thor Industries, Inc.		78,848
	3,646	Tiffany & Co.		176,758
	50,172	Time Warner Cable, Inc.		2,822,175
	127,841	Time Warner, Inc.		4,228,980
	12,965	TJX Cos., Inc. (The)		600,798
	8,651	Toll Brothers, Inc.*		195,253

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	1,894	Tractor Supply Co.*	$	127,220
	12,458	TRW Automotive Holdings Corp.*		401,272
	2,115	Tupperware Brands Corp.		108,013
	2,160	Urban Outfitters, Inc.*		81,022
	5,611	VF Corp.		484,903
	30,408	Viacom, Inc., Class B*		1,074,315
	25,466	Virgin Media, Inc.		447,947
	76,376	Walt Disney Co. (The)		2,813,692
	9,737	Warner Music Group Corp.*		66,698
	174	Washington Post Co. (The), Class B		88,246
	21,905	Wendy's/Arby's Group, Inc., Class A		116,316
	6,659	Whirlpool Corp.		724,965
	6,359	Williams-Sonoma, Inc.		183,139
	8,417	Wyndham Worldwide Corp.		225,660
	1,457	Wynn Resorts Ltd.*		128,566
	15,048	Yum! Brands, Inc.*		638,336
				75,464,699
		Consumer Staples—9.5%
	11,334	Alberto-Culver Co.		326,419
	261,063	Altria Group, Inc.		5,531,925
	52,186	Archer-Daniels-Midland Co.		1,458,077
	15,903	Avon Products, Inc.		514,144
	6,759	BJ's Wholesale Club, Inc.*		258,734
	4,221	Brown-Forman Corp., Class B		245,578
	16,187	Bunge Ltd.		857,102
	10,073	Campbell Soup Co.		361,218
	3,341	Casey's General Stores, Inc.		129,063
	5,943	Chiquita Brands International, Inc.*		89,383
	1,765	Church & Dwight Co., Inc.		122,226
	5,148	Clorox Co. (The)		333,076
	79,089	Coca-Cola Co. (The)		4,227,307
	18,279	Coca-Cola Enterprises, Inc.		506,877
	11,931	Colgate-Palmolive Co.		1,003,397
	27,279	ConAgra Foods, Inc.		667,517
	15,999	Constellation Brands, Inc., Class A*		292,302
	4,487	Corn Products International, Inc.		161,532
	26,038	Costco Wholesale Corp.		1,538,325
	76,360	CVS Caremark Corp.		2,819,975
	34,936	Dean Foods Co.*		548,495
	12,008	Del Monte Foods Co.		179,399
	7,880	Dole Food Co., Inc.*		89,202
	7,399	Dr Pepper Snapple Group, Inc.*		242,169
	3,605	Energizer Holdings, Inc.*		220,265
	4,817	Estee Lauder Cos., Inc. (The), Class A		317,537
	3,705	Flowers Foods, Inc.		97,664
	4,649	Fresh Del Monte Produce, Inc.*		97,025
	11,822	General Mills, Inc.		841,490
	12,811	Great Atlantic & Pacific Tea Co., Inc. (The)*		103,128
	12,772	H.J. Heinz Co.		598,624

See Notes to Financial Statements.

Schedule of Investments (Continued)

PowerShares FTSE RAFI US 1000 Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	8,329	Hershey Co. (The)	$	391,546
	4,629	Hormel Foods Corp.		188,678
	4,684	J.M. Smucker Co. (The)		286,052
	10,361	Kellogg Co.		569,233
	19,416	Kimberly-Clark Corp.		1,189,424
	89,142	Kraft Foods, Inc., Class A		2,638,603
	68,634	Kroger Co. (The)		1,525,734
	7,456	Lorillard, Inc.		584,327
	4,947	McCormick & Co., Inc.		195,753
	10,117	Molson Coors Brewing Co., Class B		448,790
	2,644	Nash Finch Co.		92,593
	2,523	NBTY, Inc.*		102,636
	9,389	Pantry, Inc. (The)*		148,534
	49,366	PepsiCo, Inc.		3,219,650
	43,540	Philip Morris International, Inc.		2,136,943
	102,576	Procter & Gamble Co. (The)		6,376,124
	2,663	Ralcorp Holdings, Inc.*		177,223
	14,514	Reynolds American, Inc.		775,338
	220,060	Rite Aid Corp.*		325,689
	2,804	Ruddick Corp.		99,093
	42,412	Safeway, Inc.		1,000,923
	47,686	Sara Lee Corp.		678,095
	21,894	Smithfield Foods, Inc.*		410,293
	52,270	SUPERVALU, Inc.		778,823
	37,064	Sysco Corp.		1,168,998
	36,641	Tyson Foods, Inc., Class A		717,797
	3,045	United Natural Foods, Inc.*		93,451
	1,983	Universal Corp.		102,680
	48,313	Walgreen Co.		1,698,202
	151,514	Wal-Mart Stores, Inc.		8,128,726
	985	Weis Markets, Inc.		36,721
	7,247	Whole Foods Market, Inc.*		282,778
	8,837	Winn-Dixie Stores, Inc.*		111,435
				61,460,060
		Energy—11.7%
	4,417	Alon USA Energy, Inc.		32,288
	3,710	Alpha Natural Resources, Inc.*		174,667
	16,610	Anadarko Petroleum Corp.		1,032,478
	9,805	Apache Corp.		997,757
	7,060	Arch Coal, Inc.		190,620
	18,318	Baker Hughes, Inc.		911,504
	2,340	Cabot Oil & Gas Corp.		84,544
	7,561	Cameron International Corp.*		298,357
	32,215	Chesapeake Energy Corp.		766,717
	146,149	Chevron Corp.		11,902,375
	2,334	Cimarex Energy Co.		158,899
	771	CNX Gas Corp.*		29,506
	4,678	Complete Production Services, Inc.*		70,591
	160,353	ConocoPhillips		9,491,294
	4,111	CONSOL Energy, Inc.		183,679

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	8,630	Crosstex Energy, Inc.*	$	77,929
	8,959	Denbury Resources, Inc.*		171,565
	17,642	Devon Energy Corp.		1,187,836
	3,521	Diamond Offshore Drilling, Inc.		278,511
	2,675	Dresser-Rand Group, Inc.*		94,374
	40,019	El Paso Corp.		484,230
	5,939	EOG Resources, Inc.		665,881
	3,705	EXCO Resources, Inc.		68,728
	5,440	Exterran Holdings, Inc.*		158,576
	278,769	Exxon Mobil Corp.		18,914,477
	2,450	FMC Technologies, Inc.*		165,840
	5,289	Forest Oil Corp.*		154,968
	9,215	Frontier Oil Corp.		140,068
	16,042	General Maritime Corp.		130,101
	32,109	Halliburton Co.		984,141
	12,459	Helix Energy Solutions Group, Inc.*		181,652
	4,174	Helmerich & Payne, Inc.		169,548
	22,185	Hess Corp.		1,409,857
	3,376	Holly Corp.		91,152
	8,060	Key Energy Services, Inc.*		87,532
	4,889	Linn Energy LLC		132,492
	79,185	Marathon Oil Corp.		2,545,798
	5,708	Mariner Energy, Inc.*		136,307
	2,788	Massey Energy Co.		102,124
	12,219	Murphy Oil Corp.		734,973
	22,020	Nabors Industries Ltd. (Bermuda)*		474,971
	20,769	National Oilwell Varco, Inc.		914,459
	4,876	Newfield Exploration Co.*		283,734
	8,814	Noble Corp. (Switzerland)		348,065
	4,761	Noble Energy, Inc.		363,740
	25,843	Occidental Petroleum Corp.		2,291,240
	1,535	Oceaneering International, Inc.*		100,543
	2,761	Oil States International, Inc.*		133,384
	2,992	Overseas Shipholding Group, Inc.		149,780
	12,724	Patterson-UTI Energy, Inc.		194,550
	6,492	Peabody Energy Corp.		303,306
	3,235	Penn Virginia Corp.		82,525
	7,500	Petrohawk Energy Corp.*		161,925
	4,481	Pioneer Natural Resources Co.		287,367
	5,682	Plains Exploration & Production Co.*		166,539
	10,711	Pride International, Inc.*		324,865
	2,230	Range Resources Corp.		106,505
	6,830	Rowan Cos., Inc.*		203,534
	35,820	Schlumberger Ltd.		2,558,264
	1,512	SEACOR Holdings, Inc.*		127,265
	5,625	Ship Finance International Ltd. (Bermuda)		111,375
	11,003	Smith International, Inc.		525,503
	6,683	Southern Union Co.		174,627
	4,016	Southwestern Energy Co.*		159,355
	28,918	Spectra Energy Corp.		674,946
	2,530	St. Mary Land & Exploration Co.*		101,807

See Notes to Financial Statements.

Schedule of Investments (Continued)

PowerShares FTSE RAFI US 1000 Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	33,325	Sunoco, Inc.	$	1,092,393
	4,809	Superior Energy Services, Inc.*		130,132
	6,825	Teekay Corp. (Bahamas)		170,966
	41,493	Tesoro Corp.		545,633
	3,223	Tidewater, Inc.		172,785
	12,547	Transocean Ltd.*		909,030
	1,825	Ultra Petroleum Corp.*		87,180
	3,130	Unit Corp.*		149,520
	136,811	Valero Energy Corp.		2,844,301
	36,066	Weatherford International Ltd. (Switzerland)*		653,155
	23,168	Western Refining, Inc.*		124,180
	1,606	Whiting Petroleum Corp.*		145,070
	33,307	Williams Cos., Inc. (The)		786,378
	7,674	World Fuel Services Corp.		218,172
	17,349	XTO Energy, Inc.		824,424
				75,771,429
		Financials—21.9%
	22,770	ACE Ltd.		1,211,136
	1,729	Affiliated Managers Group, Inc.*		145,547
	15,657	Aflac, Inc.		797,881
	1,580	Alexandria Real Estate Equities, Inc. REIT		111,880
	278	Alleghany Corp.*		82,610
	3,826	Allied World Assurance Co. Holdings Ltd. (Bermuda)		166,699
	53,916	Allstate Corp. (The)		1,761,436
	7,697	AMB Property Corp. REIT		214,438
	50,775	American Express Co.		2,341,743
	4,314	American Financial Group, Inc.		126,961
	146,159	American International Group, Inc.*		5,685,585
	559	American National Insurance Co.		61,579
	5,132	AmeriCredit Corp.*		122,860
	10,459	Ameriprise Financial, Inc.		484,879
	36,487	Annaly Capital Management, Inc. REIT		618,455
	11,146	Aon Corp.		473,259
	15,937	Apartment Investment & Management Co., Class A REIT		357,148
	2,410	Arch Capital Group Ltd.*		182,148
	5,884	Arthur J. Gallagher & Co.		154,573
	6,253	Aspen Insurance Holdings Ltd. (Bermuda)		168,706
	14,668	Associated Banc-Corp.		213,126
	11,989	Assurant, Inc.		436,759
	8,945	Astoria Financial Corp.		144,372
	3,231	AvalonBay Communities, Inc. REIT		336,153
	9,396	Axis Capital Holdings Ltd. (Bermuda)		292,873
	5,528	BancorpSouth, Inc.		122,390
	836,778	Bank of America Corp.		14,919,752
	2,755	Bank of Hawaii Corp.		145,684
	55,151	Bank of New York Mellon Corp. (The)		1,716,851
	47,344	BB&T Corp.		1,573,715

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	70,195	Berkshire Hathaway, Inc., Class B*	$	5,405,015
	6,288	BioMed Realty Trust, Inc. REIT*		116,391
	2,392	BlackRock, Inc.		440,128
	936	BOK Financial Corp.		50,946
	6,822	Boston Properties, Inc. REIT		537,983
	13,346	Brandywine Realty Trust REIT		170,028
	2,974	BRE Properties, Inc. REIT		124,194
	5,910	Brown & Brown, Inc.		119,027
	4,021	Camden Property Trust REIT		194,737
	45,481	Capital One Financial Corp.		1,974,330
	41,722	CapitalSource, Inc.		249,080
	13,106	CB Richard Ellis Group, Inc., Class A*		226,996
	13,356	CBL & Associates Properties, Inc. REIT		194,998
	35,318	Charles Schwab Corp. (The)		681,284
	20,848	Chubb Corp. (The)		1,102,234
	15,244	Cincinnati Financial Corp.		432,930
	2,491,596	Citigroup, Inc.*		10,888,275
	3,020	City National Corp.		188,086
	2,477	CME Group, Inc.		813,472
	1,415	CNA Financial Corp.*		39,790
	10,288	Colonial Properties Trust REIT		162,242
	14,447	Comerica, Inc.		606,774
	3,941	Commerce Bancshares, Inc.		163,236
	47,532	Conseco, Inc.*		280,439
	2,341	Corporate Office Properties Trust REIT		94,693
	2,834	Cullen/Frost Bankers, Inc.		168,226
	4,130	Delphi Financial Group, Inc., Class A		113,575
	22,862	Developers Diversified Realty Corp. REIT		280,974
	40,324	Discover Financial Services		623,409
	5,278	Douglas Emmett, Inc. REIT*		88,354
	23,333	Duke Realty Corp. REIT		315,695
	131,390	ETRADE Financial Corp.		220,735
	5,160	East West Bancorp, Inc.		101,084
	3,335	Eaton Vance Corp.		117,525
	3,712	Endurance Specialty Holdings Ltd. (Bermuda)		136,787
	14,830	Equity Residential REIT		671,354
	2,046	Erie Indemnity Co., Class A		94,750
	1,077	Essex Property Trust, Inc. REIT		113,968
	3,809	Everest Re Group Ltd.		291,960
	492,305	Federal National Mortgage Association*		600,612
	1,914	Federal Realty Investment Trust REIT		148,124
	6,413	Federated Investors, Inc., Class B		154,682
	42,714	Fidelity National Financial, Inc., Class A		648,399
	74,895	Fifth Third Bancorp		1,116,684
	9,007	First American Corp. (The)		311,372
	336	First Citizens BancShares, Inc., Class A		69,216
	21,631	First Horizon National Corp.*		306,079
	16,508	First Industrial Realty Trust, Inc. REIT*		131,734
	9,083	First Niagara Financial Group, Inc.		126,254
	5,167	FirstMerit Corp.		121,424

See Notes to Financial Statements.

Schedule of Investments (Continued)

PowerShares FTSE RAFI US 1000 Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	33,445	Fortress Investment Group LLC, Class A*	$	158,864
	4,845	Franklin Resources, Inc.		560,276
	13,115	Fulton Financial Corp.		137,708
	41,383	Genworth Financial, Inc., Class A*		683,647
	21,563	Goldman Sachs Group, Inc. (The)		3,130,948
	2,894	Hanover Insurance Group, Inc. (The)		130,375
	65,769	Hartford Financial Services Group, Inc. (The)		1,879,020
	5,697	HCC Insurance Holdings, Inc.		154,901
	11,829	HCP, Inc. REIT		379,947
	3,853	Health Care REIT, Inc. REIT		173,115
	3,852	Highwoods Properties, Inc. REIT		123,148
	2,060	Home Properties, Inc. REIT		102,361
	10,751	Hospitality Properties Trust REIT		284,794
	37,218	Host Hotels & Resorts, Inc. REIT*		605,165
	32,624	HRPT Properties Trust REIT		255,772
	24,846	Hudson City Bancorp, Inc.		330,452
	64,723	Huntington Bancshares, Inc.		438,175
	8,353	Interactive Brokers Group, Inc., Class A*		143,170
	1,180	IntercontinentalExchange, Inc.*		137,623
	3,325	International Bancshares Corp.		80,365
	12,176	Invesco Ltd.(~)		279,926
	39,945	iStar Financial, Inc. REIT*		268,031
	8,376	Janus Capital Group, Inc.*		117,934
	3,515	Jefferies Group, Inc.		95,678
	1,701	Jones Lang LaSalle, Inc.		134,175
	245,417	JPMorgan Chase & Co.		10,449,856
	95,146	KeyCorp		858,217
	21,441	Kimco Realty Corp. REIT		334,265
	12,014	Legg Mason, Inc.		380,724
	3,547	Leucadia National Corp.		89,775
	15,525	Lexington Realty Trust REIT		109,917
	7,045	Liberty Property Trust REIT		238,191
	27,671	Lincoln National Corp.		846,456
	25,598	Loews Corp.		953,270
	6,632	M&T Bank Corp.		579,305
	7,116	Macerich Co. (The) REIT		318,156
	5,497	Mack-Cali Realty Corp. REIT		188,877
	463	Markel Corp.*		177,255
	28,346	Marsh & McLennan Cos., Inc.		686,540
	70,151	Marshall & Ilsley Corp.		638,374
	19,704	MBIA, Inc.*		188,764
	2,224	Mercury General Corp.		100,058
	59,198	MetLife, Inc.		2,698,245
	19,310	MF Global Holdings Ltd.*		178,038
	17,025	MFA Financial, Inc. REIT		121,048
	7,209	Montpelier Re Holdings Ltd. (Bermuda)		119,669
	5,169	Moody's Corp.		127,778
	108,644	Morgan Stanley		3,283,222
	3,366	MSCI, Inc., Class A*		116,632
	14,375	NASDAQ OMX Group, Inc. (The)*		301,875

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	3,940	National Retail Properties, Inc. REIT	$	92,708
	3,161	Nationwide Health Properties, Inc. REIT		110,698
	26,837	New York Community Bancorp, Inc.		442,005
	8,962	Northern Trust Corp.		492,731
	15,209	NYSE Euronext		496,270
	24,675	Old Republic International Corp.		370,372
	4,676	PartnerRe Ltd.		362,764
	9,290	Pennsylvania Real Estate Investment Trust REIT		146,689
	15,483	People's United Financial, Inc.		240,451
	10,068	PHH Corp.*		228,443
	34,686	Phoenix Cos., Inc. (The)*		112,036
	2,536	Platinum Underwriters Holdings Ltd. (Bermuda)		94,365
	8,405	Plum Creek Timber Co., Inc. REIT		334,519
	25,637	PNC Financial Services Group, Inc.		1,723,063
	144,288	Popular, Inc.*		568,495
	18,650	Principal Financial Group, Inc.		544,953
	1,578	ProAssurance Corp.*		96,179
	40,743	Progressive Corp. (The)		818,527
	42,576	ProLogis REIT		560,726
	10,158	Protective Life Corp.		244,503
	27,844	Prudential Financial, Inc.		1,769,765
	3,723	Public Storage REIT		360,796
	6,013	Raymond James Financial, Inc.		184,238
	4,515	Rayonier, Inc. REIT		221,145
	3,433	Realty Income Corp. REIT		112,568
	8,690	Redwood Trust, Inc. REIT		144,949
	3,941	Regency Centers Corp. REIT		161,778
	154,030	Regions Financial Corp.		1,361,625
	5,136	Reinsurance Group of America, Inc.		265,172
	3,839	RenaissanceRe Holdings Ltd. (Bermuda)		214,792
	4,341	SEI Investments Co.		97,499
	5,060	Selective Insurance Group, Inc.		84,553
	4,218	Senior Housing Properties Trust REIT		94,821
	8,905	Simon Property Group, Inc. REIT		792,723
	4,001	SL Green Realty Corp. REIT		248,742
	38,250	SLM Corp.*		468,180
	3,000	StanCorp Financial Group, Inc.		134,880
	20,292	State Street Corp.		882,702
	826	Student Loan Corp. (The)		23,326
	54,971	SunTrust Banks, Inc.		1,627,142
	17,312	Susquehanna Bancshares, Inc.		188,701
	1,825	SVB Financial Group*		89,845
	80,959	Synovus Financial Corp.		243,687
	6,038	T. Rowe Price Group, Inc.		347,245
	10,361	TCF Financial Corp.		193,025
	14,770	TD Ameritrade Holding Corp.*		295,695
	5,983	Torchmark Corp.		320,330
	4,494	Transatlantic Holdings, Inc.		223,487
	48,766	Travelers Cos., Inc. (The)		2,474,387

See Notes to Financial Statements.

Schedule of Investments (Continued)

PowerShares FTSE RAFI US 1000 Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	4,220	Trustmark Corp.	$	103,306
	122,644	U.S. Bancorp		3,283,180
	9,924	UDR, Inc. REIT		201,556
	6,704	Unitrin, Inc.		196,092
	25,807	Unum Group		631,497
	9,641	Valley National Bancorp		156,570
	4,122	Ventas, Inc. REIT		194,682
	7,965	Vornado Realty Trust REIT		664,042
	9,981	W.R. Berkley Corp.		269,487
	6,022	Washington Federal, Inc.		123,873
	7,217	Webster Financial Corp.		149,536
	7,516	Weingarten Realty Investors REIT		173,770
	296,644	Wells Fargo & Co.		9,821,883
	55	Wesco Financial Corp.		20,848
	665	White Mountains Insurance Group Ltd.		228,494
	8,540	Whitney Holding Corp.		116,998
	7,970	Willis Group Holdings PLC		274,567
	7,270	Wilmington Trust Corp.		125,989
	28,983	XL Capital Ltd., Class A		515,897
	2,105	Zenith National Insurance Corp.		79,611
	16,700	Zions Bancorp		479,791
				141,891,523
		Health Care—8.9%
	45,670	Abbott Laboratories		2,336,477
	26,598	Aetna, Inc.		785,971
	1,261	Alcon, Inc. (Switzerland)*		196,539
	4,916	Allergan, Inc.		313,100
	4,246	AMERIGROUP Corp.*		153,875
	41,354	AmerisourceBergen Corp.		1,275,771
	32,843	Amgen, Inc.*		1,883,874
	14,061	Baxter International, Inc.		663,960
	2,201	Beckman Coulter, Inc.		137,342
	6,800	Becton, Dickinson and Co.		519,316
	8,562	Biogen Idec, Inc.*		455,927
	710	Bio-Rad Laboratories, Inc., Class A*		79,300
	104,594	Boston Scientific Corp.*		719,607
	95,630	Bristol-Myers Squibb Co.		2,418,483
	4,452	Brookdale Senior Living, Inc.*		95,718
	1,952	C.R. Bard, Inc.		168,907
	53,838	Cardinal Health, Inc.		1,867,640
	11,668	CareFusion Corp.*		321,803
	2,901	Celgene Corp.*		179,717
	5,060	Centene Corp.*		115,874
	2,472	Cephalon, Inc.*		158,702
	1,475	Cerner Corp.*		125,242
	2,704	Charles River Laboratories International, Inc.*		90,530
	15,642	CIGNA Corp.		501,483
	7,819	Community Health Systems, Inc.*		319,484
	2,013	Covance, Inc.*		115,023

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	18,797	Coventry Health Care, Inc.*	$	446,241
	13,333	Covidien PLC (Ireland)		639,851
	4,644	DaVita, Inc.*		289,925
	3,852	DENTSPLY International, Inc.		141,137
	981	Edwards Lifesciences Corp.*		101,121
	64,292	Eli Lilly & Co.		2,248,291
	1,769	Emergency Medical Services Corp., Class A*		93,545
	4,898	Endo Pharmaceuticals Holdings, Inc.*		107,266
	5,471	Express Scripts, Inc.*		547,811
	10,779	Forest Laboratories, Inc.*		293,836
	7,414	Genzyme Corp.*		394,721
	11,689	Gilead Sciences, Inc.*		463,703
	18,667	Health Management Associates, Inc., Class A*		173,976
	17,011	Health Net, Inc.*		374,582
	3,428	Healthspring, Inc.*		60,333
	3,828	Henry Schein, Inc.*		231,479
	4,024	Hill-Rom Holdings, Inc.		127,601
	9,344	Hologic, Inc.*		166,977
	4,406	Hospira, Inc.*		236,999
	17,674	Humana, Inc.*		808,055
	290	Intuitive Surgical, Inc.*		104,562
	2,977	Inverness Medical Innovations, Inc.*		118,425
	93,229	Johnson & Johnson		5,994,625
	6,103	Kindred Healthcare, Inc.*		108,878
	3,063	Kinetic Concepts, Inc.*		132,628
	18,782	King Pharmaceuticals, Inc.*		184,064
	3,592	Laboratory Corp. of America Holdings*		282,223
	4,383	Life Technologies Corp.*		239,794
	4,651	LifePoint Hospitals, Inc.*		177,575
	3,628	Lincare Holdings, Inc.*		169,391
	2,255	Magellan Health Services, Inc.*		95,184
	30,227	McKesson Corp.		1,959,012
	20,140	Medco Health Solutions, Inc.*		1,186,649
	1,625	MEDNAX, Inc.*		89,278
	31,789	Medtronic, Inc.		1,388,861
	103,024	Merck & Co., Inc.		3,609,961
	937	Mettler-Toledo International, Inc.*		117,575
	1,256	Millipore Corp.*		133,324
	5,626	Mylan, Inc.		123,941
	8,669	Omnicare, Inc.		240,912
	5,122	Owens & Minor, Inc.		161,087
	4,673	Patterson Cos., Inc.*		149,489
	4,835	PerkinElmer, Inc.		121,117
	519,834	Pfizer, Inc.		8,691,624
	4,979	Pharmaceutical Product Development, Inc.		136,923
	6,479	Quest Diagnostics, Inc.		370,340
	8,093	St. Jude Medical, Inc.*		330,356
	6,437	Stryker Corp.		369,741
	2,000	Teleflex, Inc.		122,640

See Notes to Financial Statements.

Schedule of Investments (Continued)

PowerShares FTSE RAFI US 1000 Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	48,514	Tenet Healthcare Corp.*	$	303,213
	16,936	Thermo Fisher Scientific, Inc.*		936,222
	68,450	UnitedHealth Group, Inc.		2,074,720
	5,231	Universal American Financial Corp.*		80,296
	5,181	Universal Health Services, Inc., Class B		192,319
	2,643	Varian Medical Systems, Inc.*		149,012
	1,393	Warner Chilcott PLC, Class A (Ireland)*		39,505
	1,718	Waters Corp.*		123,679
	4,176	Watson Pharmaceuticals, Inc.*		178,816
	2,250	WellCare Health Plans, Inc.*		64,418
	42,104	WellPoint, Inc.*		2,265,195
	8,446	Zimmer Holdings, Inc.*		514,446
				57,779,135
		Industrials—11.9%
	25,105	3M Co.		2,226,060
	1,780	A.O. Smith Corp.		91,901
	3,190	ABM Industries, Inc.		68,553
	2,170	Acuity Brands, Inc.		98,106
	6,315	Aecom Technology Corp.*		189,892
	9,785	Aercap Holdings NV (Netherlands)*		135,033
	7,915	AGCO Corp.*		277,183
	3,802	Alaska Air Group, Inc.*		157,441
	11,305	Albany International Corp., Class A		287,938
	3,077	Alexander & Baldwin, Inc.		109,480
	1,881	Alliant Techsystems, Inc.*		152,192
	1,588	Amerco, Inc.*		99,171
	3,115	AMETEK, Inc.		134,724
	55,377	AMR Corp.*		408,682
	1,354	Armstrong World Industries, Inc.*		58,967
	9,035	Avery Dennison Corp.		352,636
	31,936	Avis Budget Group, Inc.*		482,872
	4,320	BE Aerospace, Inc.*		128,347
	32,972	Boeing Co. (The)		2,388,162
	5,388	Briggs & Stratton Corp.		127,911
	3,213	Brink's Co. (The)		85,562
	4,785	C.H. Robinson Worldwide, Inc.		288,536
	3,352	Carlisle Cos., Inc.		126,471
	32,408	Caterpillar, Inc.		2,206,661
	8,625	Cintas Corp.		235,031
	16,237	Continental Airlines, Inc., Class B*		362,897
	3,993	Con-way, Inc.		155,088
	6,866	Cooper Industries PLC, Class A (Ireland)		337,121
	5,494	Corrections Corp. of America*		113,836
	5,865	Covanta Holding Corp.*		102,520
	3,416	Crane Co.		122,771
	19,486	CSX Corp.		1,092,190
	7,635	Cummins, Inc.		551,476
	8,573	Danaher Corp.		722,532
	16,901	Deere & Co.		1,011,018
	22,113	Delta Air Lines, Inc.*		267,125

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	4,891	Deluxe Corp.	$	102,564
	4,410	Dollar Thrifty Automotive Group, Inc.*		193,996
	2,048	Donaldson Co., Inc.		94,822
	8,597	Dover Corp.		448,935
	1,181	Dun & Bradstreet Corp. (The)		90,902
	5,485	DynCorp International, Inc., Class A*		94,342
	9,421	Eaton Corp.		726,924
	7,268	EMCOR Group, Inc.*		207,574
	29,171	Emerson Electric Co.		1,523,601
	4,766	Equifax, Inc.		160,138
	2,060	Esterline Technologies Corp.*		114,907
	4,602	Expeditors International of Washington, Inc.		187,486
	3,180	Fastenal Co.		173,914
	15,579	FedEx Corp.		1,402,266
	577	First Solar, Inc.*		82,828
	1,298	Flowserve Corp.		148,725
	9,241	Fluor Corp.		488,294
	5,636	Foster Wheeler AG (Switzerland)*		168,967
	2,284	Gardner Denver, Inc.		114,862
	4,705	GATX Corp.		153,571
	5,579	General Cable Corp.*		159,392
	17,924	General Dynamics Corp.		1,368,677
	871,143	General Electric Co.		16,429,757
	5,002	Goodrich Corp.		371,048
	3,205	Granite Construction, Inc.		107,720
	5,872	Harsco Corp.		181,797
	70,397	Hertz Global Holdings, Inc.*		1,017,941
	3,537	HNI Corp.		109,788
	38,369	Honeywell International, Inc.		1,821,376
	3,180	Hubbell, Inc., Class B		147,775
	2,295	IDEX Corp.		77,112
	21,238	Illinois Tool Works, Inc.		1,085,262
	17,467	Ingersoll-Rand PLC (Ireland)		645,930
	7,119	Iron Mountain, Inc.*		179,043
	8,072	ITT Corp.		448,561
	3,033	J.B. Hunt Transport Services, Inc.		111,796
	8,458	Jacobs Engineering Group, Inc.*		407,845
	20,724	JetBlue Airways Corp.*		115,847
	2,870	Joy Global, Inc.		163,045
	4,480	Kansas City Southern*		181,664
	11,370	KBR, Inc.		251,050
	6,991	Kelly Services, Inc., Class A*		112,415
	4,316	Kennametal, Inc.		141,824
	6,316	L-3 Communications Holdings, Inc.		590,988
	2,603	Lennox International, Inc.		117,812
	2,079	Lincoln Electric Holdings, Inc.		124,615
	19,780	Lockheed Martin Corp.		1,679,124
	9,435	Manitowoc Co., Inc. (The)		132,184
	8,341	Manpower, Inc.		467,930
	43,765	Masco Corp.		710,306

See Notes to Financial Statements.

Schedule of Investments (Continued)

PowerShares FTSE RAFI US 1000 Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	7,736	McDermott International, Inc.*	$	212,044
	2,704	Moog, Inc., Class A*		100,508
	2,239	MSC Industrial Direct Co., Class A		122,003
	5,958	Navistar International Corp.*		288,010
	19,744	Norfolk Southern Corp.		1,171,412
	22,491	Northrop Grumman Corp.		1,525,565
	3,878	Oshkosh Corp.*		149,768
	8,703	Owens Corning*		302,690
	22,052	PACCAR, Inc.		1,025,859
	3,343	Pall Corp.		130,344
	7,572	Parker Hannifin Corp.		523,831
	5,327	Pentair, Inc.		192,624
	15,114	Pitney Bowes, Inc.		383,896
	2,733	Precision Castparts Corp.		350,753
	8,625	Quanta Services, Inc.*		173,621
	23,287	R.R. Donnelley & Sons Co.		500,438
	18,329	Raytheon Co.		1,068,581
	1,577	Regal-Beloit Corp.		99,777
	12,727	Republic Services, Inc.		394,919
	5,631	Robert Half International, Inc.		154,177
	5,206	Rockwell Automation, Inc.		316,108
	4,330	Rockwell Collins, Inc.		281,450
	2,655	Roper Industries, Inc.		162,008
	4,510	RSC Holdings, Inc.*		41,357
	7,534	Ryder System, Inc.		350,482
	26	Seaboard Corp.		37,960
	5,447	Shaw Group, Inc. (The)*		208,511
	7,726	SkyWest, Inc.		115,736
	3,362	Snap-On, Inc.		161,981
	31,455	Southwest Airlines Co.		414,577
	7,834	Spirit Aerosystems Holdings, Inc., Class A*		173,758
	3,369	SPX Corp.		235,426
	17,442	Steelcase, Inc., Class A		143,199
	15,167	Terex Corp.*		402,229
	24,128	Textron, Inc.		551,084
	3,409	Thomas & Betts Corp.*		142,973
	7,287	Timken Co. (The)		256,357
	985	TransDigm Group, Inc.		54,441
	8,529	Trinity Industries, Inc.		212,287
	4,600	Tutor Perini Corp.*		111,642
	37,821	Tyco International Ltd. (Switzerland)		1,467,077
	14,992	UAL Corp.*		323,527
	19,259	Union Pacific Corp.		1,457,136
	40,671	United Parcel Service, Inc., Class B		2,811,993
	30,712	United Rentals, Inc.*		441,024
	2,417	United Stationers, Inc.*		147,969
	37,819	United Technologies Corp.		2,834,534
	5,778	URS Corp.*		296,700
	7,687	US Airways Group, Inc.*		54,347
	10,339	USG Corp.*		244,000
	5,960	UTi Worldwide, Inc. (British Virgin Islands)*		94,466

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	2,805	W.W. Grainger, Inc.	$	310,065
	3,567	Waste Connections, Inc.*		127,663
	27,865	Waste Management, Inc.		966,358
	3,403	Werner Enterprises, Inc.		76,295
	6,241	WESCO International, Inc.*		253,509
				77,046,377
		Information Technology—10.9%
	19,146	Accenture PLC, Class A (Ireland)		835,531
	16,785	Activision Blizzard, Inc.		185,978
	8,416	Adobe Systems, Inc.*		282,693
	25,232	Advanced Micro Devices, Inc.*		228,602
	8,147	Agilent Technologies, Inc.*		295,410
	4,075	Akamai Technologies, Inc.*		158,232
	1,889	Alliance Data Systems Corp.*		141,788
	3,931	Altera Corp.		99,690
	7,750	Amdocs Ltd. (Guernsey)*		247,535
	15,959	Amkor Technology, Inc.*		120,331
	3,370	Amphenol Corp., Class A		155,728
	9,619	Analog Devices, Inc.		287,897
	3,699	Anixter International, Inc.*		193,828
	17,034	AOL, Inc.*		397,914
	11,374	Apple, Inc.*		2,969,979
	50,253	Applied Materials, Inc.		692,486
	16,579	Arrow Electronics, Inc.*		505,659
	3,603	Autodesk, Inc.*		122,538
	17,323	Automatic Data Processing, Inc.		751,125
	17,074	Avnet, Inc.*		545,856
	3,132	AVX Corp.		48,389
	5,252	Benchmark Electronics, Inc.*		113,653
	3,222	BMC Software, Inc.*		126,818
	9,196	Brightpoint, Inc.*		74,396
	8,137	Broadcom Corp., Class A		280,645
	4,638	Broadridge Financial Solutions, Inc.		110,431
	19,068	Brocade Communications Systems, Inc.*		123,751
	10,478	CA, Inc.		239,003
	2,002	CACI International, Inc., Class A*		94,955
	4,160	Check Point Software Technologies Ltd. (Israel)*		148,179
	125,440	Cisco Systems, Inc.*		3,376,845
	3,157	Citrix Systems, Inc.*		148,379
	3,846	Cognizant Technology Solutions Corp., Class A*		196,838
	4,233	CommScope, Inc.*		137,911
	14,683	Computer Sciences Corp.*		769,242
	10,684	Convergys Corp.*		135,046
	40,186	Corning, Inc.		773,580
	135,364	Dell, Inc.*		2,190,190
	4,033	Diebold, Inc.		126,435
	1,614	Dolby Laboratories, Inc., Class A*		110,914
	2,981	DST Systems, Inc.		126,543

See Notes to Financial Statements.

Schedule of Investments (Continued)

PowerShares FTSE RAFI US 1000 Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	44,216	eBay, Inc.*	$	1,052,783
	4,690	EchoStar Corp., Class A*		90,095
	12,332	Electronic Arts, Inc.*		238,871
	61,972	EMC Corp.*		1,178,088
	6,558	Fairchild Semiconductor International, Inc.*		73,581
	19,558	Fidelity National Information Services, Inc.		514,180
	6,328	Fiserv, Inc.*		323,298
	89,446	Flextronics International Ltd. (Singapore)*		693,207
	3,190	FLIR Systems, Inc.*		97,582
	3,477	Google, Inc., Class A*		1,826,955
	4,606	Harris Corp.		237,117
	3,723	Hewitt Associates, Inc., Class A*		152,606
	80,261	Hewlett-Packard Co.		4,171,164
	9,236	IAC/InterActiveCorp.*		207,071
	32,908	Ingram Micro, Inc., Class A*		597,609
	9,097	Insight Enterprises, Inc.*		136,728
	233,433	Intel Corp.		5,329,275
	37,915	International Business Machines Corp.		4,891,035
	9,075	Intuit, Inc.*		328,152
	18,021	Jabil Circuit, Inc.		276,082
	11,948	Juniper Networks, Inc.*		339,443
	6,233	KLA-Tencor Corp.		212,296
	4,107	Lam Research Corp.*		166,539
	5,843	Lexmark International, Inc., Class A*		216,483
	5,711	Linear Technology Corp.		171,673
	23,834	LSI Corp.*		143,481
	10,945	Marvell Technology Group Ltd. (Bermuda)*		226,014
	1,645	MasterCard, Inc., Class A		408,026
	13,980	Maxim Integrated Products, Inc.		271,492
	2,788	McAfee, Inc.*		96,883
	16,086	MEMC Electronic Materials, Inc.*		208,635
	6,851	Microchip Technology, Inc.		200,118
	44,835	Micron Technology, Inc.*		419,207
	361,154	Microsoft Corp.		11,029,643
	3,899	Molex, Inc.		87,377
	4,201	Molex, Inc., Class A		79,819
	6,190	Monster Worldwide, Inc.*		107,892
	178,251	Motorola, Inc.*		1,260,235
	9,659	National Semiconductor Corp.		142,760
	13,303	NCR Corp.*		175,067
	5,103	NetApp, Inc.*		176,921
	4,026	Novellus Systems, Inc.*		105,481
	4,780	Nuance Communications, Inc.*		87,331
	12,160	NVIDIA Corp.*		191,155
	13,130	ON Semiconductor Corp.*		104,252
	69,556	Oracle Corp.		1,797,327
	11,181	Paychex, Inc.		342,139
	41,522	QUALCOMM, Inc.		1,608,562
	16,334	SAIC, Inc.*		284,375
	8,262	SanDisk Corp.*		329,571

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	13,529	Sanmina-SCI Corp.*	$	241,222
	21,187	Seagate Technology (Cayman Islands)*		389,205
	1,970	Sybase, Inc.*		85,459
	30,557	Symantec Corp.*		512,441
	1,879	SYNNEX Corp.*		51,522
	5,161	Synopsys, Inc.*		117,206
	12,499	Tech Data Corp.*		536,207
	18,650	Tellabs, Inc.*		169,342
	3,530	Teradata Corp.*		102,617
	49,758	Texas Instruments, Inc.		1,294,206
	14,339	Total System Services, Inc.		229,567
	3,235	Trimble Navigation Ltd.*		105,817
	24,469	Tyco Electronics Ltd. (Switzerland)		785,944
	3,190	Unisys Corp.*		89,384
	4,527	VeriSign, Inc.*		123,451
	10,531	Visa, Inc., Class A		950,212
	14,356	Vishay Intertechnology, Inc.*		149,446
	2,367	VMware, Inc., Class A*		145,902
	8,246	Western Digital Corp.*		338,828
	18,586	Western Union Co. (The)		339,195
	67,789	Xerox Corp.		738,900
	7,104	Xilinx, Inc.		183,141
	46,752	Yahoo!, Inc.*		772,811
				70,528,644
		Materials—3.7%
	9,136	Air Products & Chemicals, Inc.		701,462
	1,787	Airgas, Inc.		113,385
	7,824	AK Steel Holding Corp.		131,052
	2,301	Albemarle Corp.		105,064
	98,031	Alcoa, Inc.		1,317,537
	5,040	Allegheny Technologies, Inc.		269,489
	2,765	AptarGroup, Inc.		119,006
	7,879	Ashland, Inc.		469,273
	4,548	Ball Corp.		241,999
	6,649	Bemis Co., Inc.		202,196
	4,108	Cabot Corp.		133,674
	6,232	Celanese Corp., Series A		199,362
	6,051	Century Aluminum Co.*		81,568
	1,372	CF Industries Holdings, Inc.		114,795
	2,420	Cliffs Natural Resources, Inc.		151,323
	13,976	Commercial Metals Co.		207,963
	9,503	Crown Holdings, Inc.*		247,078
	3,005	Cytec Industries, Inc.		144,420
	4,119	Domtar Corp.		291,790
	86,883	Dow Chemical Co. (The)		2,678,603
	51,612	E.I. du Pont de Nemours & Co.		2,056,222
	4,850	Eastman Chemical Co.		324,562
	6,683	Ecolab, Inc.		326,398
	2,288	FMC Corp.		145,608
	15,248	Freeport-McMoRan Copper & Gold, Inc.		1,151,681

See Notes to Financial Statements.

Schedule of Investments (Continued)

PowerShares FTSE RAFI US 1000 Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	9,709	Graphic Packaging Holding Co.*	$	35,826
	2,361	Greif, Inc., Class A		139,724
	16,910	Huntsman Corp.		192,943
	3,222	International Flavors & Fragrances, Inc.		161,390
	43,230	International Paper Co.		1,155,970
	12,267	Louisiana-Pacific Corp.*		144,260
	2,855	Lubrizol Corp. (The)		257,921
	1,792	Martin Marietta Materials, Inc.		171,817
	14,838	MeadWestvaco Corp.		403,148
	11,588	Monsanto Co.		730,739
	3,332	Mosaic Co. (The)		170,399
	5,817	Nalco Holding Co.		143,854
	11,741	Newmont Mining Corp.		658,435
	23,554	Nucor Corp.		1,067,467
	5,807	Olin Corp.		121,947
	8,920	Owens-Illinois, Inc.*		316,125
	4,473	Packaging Corp. of America		110,617
	6,866	Pactiv Corp.*		174,465
	9,772	PPG Industries, Inc.		687,656
	9,420	Praxair, Inc.		789,113
	4,871	Reliance Steel & Aluminum Co.		237,754
	1,645	Rock-Tenn Co., Class A		84,882
	4,448	Rockwood Holdings, Inc.*		133,173
	8,387	RPM International, Inc.		185,185
	3,239	Scotts Miracle-Gro Co. (The), Class A		156,930
	10,014	Sealed Air Corp.		215,301
	3,284	Sigma-Aldrich Corp.		194,741
	1,427	Silgan Holdings, Inc.		86,091
	6,688	Sonoco Products Co.		221,573
	11,788	Southern Copper Corp.		360,477
	12,869	Steel Dynamics, Inc.		202,172
	16,292	Temple-Inland, Inc.		379,929
	10,381	United States Steel Corp.		567,426
	5,402	Valspar Corp. (The)		169,191
	7,320	Vulcan Materials Co.		419,290
	3,000	W.R. Grace & Co.*		86,670
	1,561	Westlake Chemical Corp.		43,833
	17,439	Weyerhaeuser Co.		863,579
	7,163	Worthington Industries, Inc.		114,393
				24,281,916
		Telecommunication Services—4.4%
	4,571	American Tower Corp., Class A*		186,543
	513,764	AT&T, Inc.		13,388,690
	6,939	CenturyTel, Inc.		236,689
	5,118	Crown Castle International Corp.*		193,716
	52,115	Frontier Communications Corp.		414,835
	6,090	Leap Wireless International, Inc.*		111,569
	107,663	Level 3 Communications, Inc.*		167,954
	17,952	MetroPCS Communications, Inc.*		136,974

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	2,419	Millicom International Cellular SA (Luxembourg)	$	213,549
	5,257	NII Holdings, Inc.*		223,002
	127,559	Qwest Communications International, Inc.		667,134
	561,174	Sprint Nextel Corp.*		2,384,990
	9,284	Telephone & Data Systems, Inc.		321,783
	6,470	tw telecom, Inc.*		115,166
	5,723	United States Cellular Corp.*		240,824
	321,573	Verizon Communications, Inc.		9,290,244
	28,150	Windstream Corp.		311,057
				28,604,719
		Utilities—5.5%
	92,505	AES Corp. (The)*		1,067,508
	5,767	AGL Resources, Inc.		227,854
	13,067	Allegheny Energy, Inc.		284,599
	8,583	Alliant Energy Corp.		293,539
	30,604	Ameren Corp.		794,480
	34,050	American Electric Power Co., Inc.		1,167,915
	8,554	American Water Works Co., Inc.		186,306
	5,467	Aqua America, Inc.		100,210
	9,614	Atmos Energy Corp.		284,382
	4,265	Avista Corp.		92,252
	3,108	Black Hills Corp.		102,222
	23,475	Calpine Corp.*		319,964
	33,383	CenterPoint Energy, Inc.		479,380
	3,470	Cleco Corp.		95,078
	17,364	CMS Energy Corp.		282,339
	22,697	Consolidated Edison, Inc.		1,025,904
	18,965	Constellation Energy Group, Inc.		670,413
	37,437	Dominion Resources, Inc.		1,564,867
	5,239	DPL, Inc.		147,635
	14,856	DTE Energy Co.		715,614
	111,045	Duke Energy Corp.		1,863,335
	174,210	Dynegy, Inc., Class A*		231,699
	28,945	Edison International		994,840
	3,177	Energen Corp.		155,260
	12,111	Entergy Corp.		984,503
	4,849	EQT Corp.		210,883
	46,537	Exelon Corp.		2,028,548
	33,495	FirstEnergy Corp.		1,268,456
	27,765	FPL Group, Inc.		1,445,168
	12,432	Great Plains Energy, Inc.		240,311
	8,415	Hawaiian Electric Industries, Inc.		196,490
	3,535	IDACORP, Inc.		127,543
	7,338	Integrys Energy Group, Inc.		364,038
	12,935	MDU Resources Group, Inc.		274,222
	23,780	Mirant Corp.*		277,275
	3,703	National Fuel Gas Co.		192,630
	3,056	New Jersey Resources Corp.		115,303
	3,764	Nicor, Inc.		163,772

See Notes to Financial Statements.

Schedule of Investments (Continued)

PowerShares FTSE RAFI US 1000 Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	34,540	NiSource, Inc.	$	563,002
	12,167	Northeast Utilities		338,121
	3,425	NorthWestern Corp.		103,503
	26,229	NRG Energy, Inc.*		633,955
	7,609	NSTAR		278,489
	18,231	NV Energy, Inc.		227,705
	6,669	OGE Energy Corp.		275,963
	9,010	ONEOK, Inc.		442,751
	27,252	Pepco Holdings, Inc.		456,198
	29,674	PG&E Corp.		1,299,721
	4,723	Piedmont Natural Gas Co., Inc.		129,882
	10,712	Pinnacle West Capital Corp.		399,986
	10,669	PNM Resources, Inc.		144,992
	7,383	Portland General Electric Co.		146,774
	28,526	PPL Corp.		706,304
	24,572	Progress Energy, Inc.		980,914
	33,623	Public Service Enterprise Group, Inc.		1,080,307
	7,033	Questar Corp.		337,232
	91,009	RRI Energy, Inc.*		370,407
	10,042	SCANA Corp.		396,358
	14,963	Sempra Energy		735,880
	58,841	Southern Co.		2,033,545
	3,766	Southwest Gas Corp.		117,123
	17,155	TECO Energy, Inc.		290,434
	9,253	UGI Corp.		254,365
	3,800	Unisource Energy Corp.		126,616
	6,825	Vectren Corp.		170,693
	9,694	Westar Energy, Inc.		229,651
	4,143	WGL Holdings, Inc.		148,071
	6,414	Wisconsin Energy Corp.		336,799
	34,866	Xcel Energy, Inc.		758,336
				35,550,814
		Total Investments (Cost $650,759,659)—100.0%		648,379,316
		Other assets less liabilities—0.0%		48,673
		Net Assets—100.0%	$	648,427,989

Investment Abbreviations:

REIT—Real Estate Investment Trust

Notes to Schedule of Investments:

* Non-income producing security.

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

See Notes to Financial Statements.

Schedule of Investments

PowerShares FTSE RAFI US 1500 Small-Mid Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—18.7%
	67,209	1-800-FLOWERS.COM, Inc., Class A*	$	192,218
	10,231	99 Cents Only Stores*		158,785
	10,176	Aeropostale, Inc.*		295,511
	16,904	AFC Enterprises, Inc.*		184,423
	13,195	AH Belo Corp., Class A*		112,158
	4,820	Alloy, Inc.*		37,355
	6,639	Ambassadors Group, Inc.		80,597
	956	Amcon Distributing Co.		48,039
	12,489	American Apparel, Inc.*		38,341
	18,554	American Axle & Manufacturing Holdings, Inc.*		199,641
	19,131	American Greetings Corp., Class A		469,857
	2,498	America's Car-Mart, Inc.*		63,274
	8,577	Ameristar Casinos, Inc.		161,505
	4,622	Arbitron, Inc.		142,404
	11,168	Arctic Cat, Inc.*		164,728
	15,665	Audiovox Corp., Class A*		145,841
	6,239	Bally Technologies, Inc.*		287,743
	10,480	Bebe Stores, Inc.		86,355
	53,483	Belo Corp., Class A		463,698
	4,776	Benihana, Inc.*		32,907
	10,738	Benihana, Inc., Class A*		73,126
	9,223	Big 5 Sporting Goods Corp.		156,330
	362	Biglari Holdings, Inc.*		141,632
	4,113	BJ's Restaurants, Inc.*		99,247
	267,296	Blockbuster, Inc., Class B*		90,881
	445,234	Blockbuster, Inc., Class A*		165,850
	788	Blue Nile, Inc.*		42,544
	6,868	Blyth, Inc.		395,872
	12,565	Bob Evans Farms, Inc.		388,635
	24,431	Bon-Ton Stores, Inc. (The)		418,259
	12,623	Books-A-Million, Inc.		93,410
	167,609	Borders Group, Inc.*		425,727
	4,036	Brink's Home Security Holdings, Inc.*		169,270
	11,554	Brookfield Homes Corp.*		129,520
	24,276	Brown Shoe Co., Inc.		456,389
	5,440	Buckle, Inc. (The)		196,819
	1,549	Buffalo Wild Wings, Inc.*		64,036
	18,942	Build-A-Bear Workshop, Inc.*		181,086
	13,623	Cache, Inc.*		93,045
	8,542	California Pizza Kitchen, Inc.*		175,111
	34,851	Callaway Golf Co.		327,251
	616	Capella Education Co.*		55,822
	9,136	Carmike Cinemas, Inc.*		153,302
	11,035	Carrols Restaurant Group, Inc.*		82,652
	5,537	Carter's, Inc.*		178,402
	26,131	Casual Male Retail Group, Inc.*		106,876
	10,388	Cato Corp. (The), Class A		246,715
	1,546	Cavco Industries, Inc.*		60,557
	6,547	CEC Entertainment, Inc.*		255,660

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	14,151	Cheesecake Factory, Inc. (The)*	$	384,483
	3,910	Cherokee, Inc.		79,920
	9,918	Children's Place Retail Stores, Inc. (The)*		454,443
	3,377	Chipotle Mexican Grill, Inc.*		455,591
	8,356	Choice Hotels International, Inc.		303,406
	17,567	Christopher & Banks Corp.		171,981
	1,176	Churchill Downs, Inc.		45,076
	7,457	Cinemark Holdings, Inc.		136,165
	2,325	Citi Trends, Inc.*		77,981
	22,960	CKE Restaurants, Inc.		283,326
	16,915	CKX, Inc.*		99,460
	6,554	Coinstar, Inc.*		290,735
	29,064	Coldwater Creek, Inc.*		205,773
	3,366	Columbia Sportswear Co.		186,948
	31,730	Conn's, Inc.*		302,387
	23,672	Cooper Tire & Rubber Co.		502,320
	17,782	Corinthian Colleges, Inc.*		277,755
	5,139	CPI Corp.		136,338
	8,861	Cracker Barrel Old Country Store, Inc.		437,468
	19,576	Crocs, Inc.*		189,104
	4,304	CSS Industries, Inc.		86,166
	4,721	CTC Media, Inc.		79,738
	1,426	Deckers Outdoor Corp.*		200,467
	50,756	Denny's Corp.*		169,017
	4,325	Destination Maternity Corp.*		136,670
	4,985	DeVry, Inc.		311,014
	6,410	DineEquity, Inc.*		263,643
	6,851	Dolan Media Co.*		81,458
	3,911	Dorman Products, Inc.*		99,144
	18,306	Dover Downs Gaming & Entertainment, Inc.		71,943
	14,702	Dress Barn, Inc. (The)*		406,951
	5,262	Drew Industries, Inc.*		134,970
	13,641	drugstore.com, Inc.*		49,926
	10,755	DSW, Inc., Class A*		324,801
	2,240	Einstein Noah Restaurant Group, Inc.*		29,075
	24,553	Entercom Communications Corp., Class A*		357,492
	44,420	Entravision Communications Corp., Class A*		142,588
	16,143	Ethan Allen Interiors, Inc.		326,089
	19,000	Finish Line, Inc. (The), Class A		306,090
	3,788	Fisher Communications, Inc.*		56,972
	5,648	Fossil, Inc.*		219,707
	22,904	Fred's, Inc., Class A		318,137
	1,970	Fuel Systems Solutions, Inc.*		61,996
	50,102	Furniture Brands International, Inc.*		414,845
	17,072	Gaylord Entertainment Co.*		576,180
	13,536	Genesco, Inc.*		450,613
	21,017	Gentex Corp.		451,655
	4,707	G-III Apparel Group Ltd.*		134,620

See Notes to Financial Statements.

Schedule of Investments (Continued)

PowerShares FTSE RAFI US 1500 Small-Mid Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	3,849	Global Sources Ltd. (Bermuda)*	$	28,213
	82,374	Gray Television, Inc.*		308,902
	26,285	Great Wolf Resorts, Inc.*		84,375
	3,527	Guess?, Inc.		161,783
	5,312	Gymboree Corp.*		260,979
	18,083	Harte-Hanks, Inc.		260,395
	10,368	Haverty Furniture Cos., Inc.		168,998
	2,213	Hawk Corp., Class A*		51,209
	6,917	Helen of Troy Ltd.*		186,828
	3,190	hhgregg, Inc.*		91,330
	5,279	Hibbett Sports, Inc.*		145,172
	7,169	Hillenbrand, Inc.		176,214
	4,754	Hooker Furniture Corp.		74,923
	27,080	Hot Topic, Inc.		206,891
	14,861	HSN, Inc.*		447,762
	12,544	Iconix Brand Group, Inc.*		216,509
	15,710	International Speedway Corp., Class A		480,098
	8,200	Interval Leisure Group, Inc.*		121,278
	19,419	Isle of Capri Casinos, Inc.*		211,473
	3,917	ITT Educational Services, Inc.*		396,126
	4,625	J.Crew Group, Inc.*		214,924
	68,983	Jackson Hewitt Tax Service, Inc.*		116,581
	23,844	JAKKS Pacific, Inc.*		364,575
	7,113	Jo-Ann Stores, Inc.*		313,826
	9,115	John Wiley & Sons, Inc., Class A		385,291
	3,949	Jos. A. Bank Clothiers, Inc.*		240,336
	37,556	Journal Communications, Inc., Class A*		212,943
	3,213	K12, Inc.*		76,052
	11,109	Kenneth Cole Productions, Inc., Class A*		138,418
	2,931	Kirkland's, Inc.*		65,273
	6,187	Knology, Inc.*		81,235
	24,058	Krispy Kreme Doughnuts, Inc.*		89,015
	19,569	K-Swiss, Inc., Class A*		243,438
	8,397	Landry's Restaurants, Inc.*		193,887
	21,439	La-Z-Boy, Inc.*		279,565
	13,078	Leapfrog Enterprises, Inc.*		89,454
	73,968	Lee Enterprises, Inc.*		279,599
	6,255	Liberty Media Corp. - Capital, Series A*		276,909
	5,521	Life Time Fitness, Inc.*		202,952
	4,743	Lifetime Brands, Inc.*		68,773
	25,280	Lin TV Corp., Class A*		182,774
	3,309	Lincoln Educational Services Corp.*		82,593
	57,516	Lions Gate Entertainment Corp. (Canada)*		398,011
	53,075	Lithia Motors, Inc., Class A*		423,539
	19,404	LKQ Corp.*		408,648
	15,430	LodgeNet Interactive Corp.*		101,838
	11,714	Luby's, Inc.*		47,793
	1,259	Lululemon Athletica, Inc.*		47,364
	2,362	Lumber Liquidators Holdings, Inc.*		71,947
	11,873	M/I Homes, Inc.*		185,219
	5,753	Maidenform Brands, Inc.*		131,283

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	11,121	Marcus Corp.	$	142,905
	3,507	Marine Products Corp.*		24,900
	16,031	MarineMax, Inc.*		178,746
	4,973	Martha Stewart Living Omnimedia, Inc., Class A*		33,220
	6,332	Matthews International Corp., Class A		221,620
	91,067	McClatchy Co. (The), Class A*		496,315
	9,170	McCormick & Schmick's Seafood Restaurants, Inc.*		90,875
	27,792	Media General, Inc., Class A*		351,569
	36,053	Mediacom Communications Corp., Class A*		238,671
	19,665	Men's Wearhouse, Inc. (The)		464,684
	16,284	Meritage Homes Corp.*		387,234
	31,190	Modine Manufacturing Co.*		436,972
	5,936	Monarch Casino & Resort, Inc.*		68,976
	2,899	Monro Muffler Brake, Inc.		103,958
	20,088	Morgans Hotel Group Co.*		170,145
	1,381	Morningstar, Inc.*		64,921
	10,273	Morton's Restaurant Group, Inc.*		62,254
	11,462	Movado Group, Inc.*		142,243
	17,534	Multimedia Games, Inc.*		80,130
	896	National Presto Industries, Inc.		100,325
	29,603	Nautilus, Inc.*		101,242
	5,310	Netflix, Inc.*		524,469
	20,484	New York & Co., Inc.*		125,772
	5,661	NutriSystem, Inc.		109,427
	18,606	O'Charley's, Inc.*		177,687
	17,026	Orbitz Worldwide, Inc.*		112,201
	18,528	Orient-Express Hotels Ltd., Class A*		252,907
	4,738	Overstock.com, Inc.*		87,653
	9,166	Oxford Industries, Inc.		197,894
	5,469	P.F. Chang's China Bistro, Inc.		238,667
	70,868	Pacific Sunwear of California, Inc.*		358,592
	3,785	Panera Bread Co., Class A*		295,003
	6,406	Papa John's International, Inc.*		175,524
	1,864	Peet's Coffee & Tea, Inc.*		73,852
	34,821	Pep Boys - Manny, Moe & Jack (The)		436,307
	6,821	Perry Ellis International, Inc.*		164,591
	34,333	Pier 1 Imports, Inc.*		284,277
	37,422	Pinnacle Entertainment, Inc.*		506,320
	15,949	Playboy Enterprises, Inc., Class B*		66,667
	15,495	Pool Corp.		380,092
	1,801	Pre-Paid Legal Services, Inc.*		80,090
	1,621	Priceline.com, Inc.*		424,783
	11,060	PRIMEDIA, Inc.		38,599
	39,661	Radio One, Inc., Class D*		199,891
	9,226	RC2 Corp.*		169,482
	27,961	RCN Corp.*		410,467
	11,284	Red Lion Hotels Corp.*		86,210
	6,590	Red Robin Gourmet Burgers, Inc.*		160,862

See Notes to Financial Statements.

Schedule of Investments (Continued)

PowerShares FTSE RAFI US 1500 Small-Mid Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	27,782	Retail Ventures, Inc.*	$	300,601
	36,063	Ruby Tuesday, Inc.*		403,545
	17,658	Ruth's Hospitality Group, Inc.*		95,883
	19,531	Ryland Group, Inc.		444,916
	21,797	Sally Beauty Holdings, Inc.*		208,161
	10,092	Scholastic Corp.		272,585
	15,883	Scientific Games Corp., Class A*		233,639
	35,089	Sealy Corp.*		131,233
	15,608	Select Comfort Corp.*		176,683
	5,619	Shoe Carnival, Inc.*		155,422
	12,446	Shuffle Master, Inc.*		119,482
	2,050	Shutterfly, Inc.*		48,236
	34,700	Sinclair Broadcast Group, Inc., Class A*		239,083
	10,443	Skechers U.S.A., Inc., Class A*		400,489
	5,232	Skyline Corp.		121,958
	12,671	Smith & Wesson Holding Corp.*		56,386
	24,279	Sonic Corp.*		284,307
	11,502	Sotheby's		384,167
	17,438	Spartan Motors, Inc.		107,592
	6,016	Speedway Motorsports, Inc.		97,760
	19,723	Stage Stores, Inc.		300,776
	16,520	Standard Motor Products, Inc.		176,103
	59,407	Standard Pacific Corp.*		380,799
	6,375	Stanley Furniture Co., Inc.*		62,921
	21,502	Stein Mart, Inc.*		203,839
	2,810	Steiner Leisure Ltd.*		131,705
	5,331	Steinway Musical Instruments, Inc.*		102,142
	2,715	Steven Madden Ltd.*		157,361
	36,389	Stewart Enterprises, Inc., Class A		246,717
	8,490	Stoneridge, Inc.*		91,607
	949	Strayer Education, Inc.		230,721
	15,179	Superior Industries International, Inc.		255,918
	2,561	Syms Corp.*		23,331
	6,325	Systemax, Inc.		146,930
	10,827	Talbots, Inc. (The)*		178,104
	6,226	Tempur-Pedic International, Inc.*		209,816
	10,363	Texas Roadhouse, Inc.*		153,165
	15,263	Timberland Co. (The), Class A*		328,154
	16,826	Town Sports International Holdings, Inc.*		63,434
	72,393	TravelCenters of America LLC*		294,640
	2,152	True Religion Apparel, Inc.*		67,250
	20,993	Tuesday Morning Corp.*		118,610
	4,900	Ulta Salon Cosmetics & Fragrance, Inc.*		113,288
	5,504	Under Armour, Inc., Class A*		185,760
	39,834	Unifi, Inc.*		152,564
	4,646	UniFirst Corp.		227,050
	3,111	Universal Electronics, Inc.*		66,015
	2,674	Universal Technical Institute, Inc.*		64,069
	10,639	Vail Resorts, Inc.*		485,564
	11,477	Valassis Communications, Inc.*		375,183
	15,947	ValueVision Media, Inc., Class A*		49,117

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	1,455	Vitamin Shoppe, Inc.*	$	36,113
	4,206	Volcom, Inc.*		100,271
	10,599	Warnaco Group, Inc. (The)*		507,056
	7,958	Weight Watchers International, Inc.		211,444
	10,572	West Marine, Inc.*		126,547
	27,561	Wet Seal, Inc. (The), Class A*		130,364
	3,123	Weyco Group, Inc.		76,326
	11,004	Winnebago Industries, Inc.*		182,997
	7,037	WMS Industries, Inc.*		351,991
	10,489	Wolverine World Wide, Inc.		321,068
	4,790	Wonder Auto Technology, Inc.*		55,420
	20,135	World Wrestling Entertainment, Inc., Class A		367,464
	75,342	Zale Corp.*		245,615
	4,784	Zumiez, Inc.*		88,791
				52,991,985
		Consumer Staples—2.9%
	1,576	Alico, Inc.		42,048
	58,468	Alliance One International, Inc.*		297,602
	3,209	American Italian Pasta Co., Class A*		125,889
	29,101	American Oriental Bioengineering, Inc. (China)*		117,859
	9,538	Andersons, Inc. (The)		344,703
	785	Arden Group, Inc., Class A		79,678
	1,737	Boston Beer Co., Inc., Class A*		99,026
	3,456	Calavo Growers, Inc.		59,927
	4,502	Cal-Maine Foods, Inc.		150,277
	3,501	Cellu Tissue Holdings, Inc.*		36,480
	10,741	Central European Distribution Corp.*		372,176
	10,547	Central Garden & Pet Co.*		118,443
	27,734	Central Garden & Pet Co., Class A*		286,492
	3,120	Coca-Cola Bottling Co. Consolidated		171,850
	18,139	Darling International, Inc.*		172,139
	3,910	Diamond Foods, Inc.		166,996
	13,162	Elizabeth Arden, Inc.*		239,680
	2,011	Farmer Bros. Co.		37,626
	2,248	Green Mountain Coffee Roasters, Inc.*		163,340
	17,826	Hain Celestial Group, Inc. (The)*		352,598
	4,342	Hansen Natural Corp.*		191,395
	23,449	Heckmann Corp.*		140,694
	9,724	Herbalife Ltd. (Cayman Islands)		469,183
	10,215	Imperial Sugar Co.		163,746
	8,952	Ingles Markets, Inc., Class A		143,501
	2,705	Inter Parfums, Inc.		46,742
	2,724	J & J Snack Foods Corp.		126,911
	4,767	Lancaster Colony Corp.		262,042
	9,442	Lance, Inc.		218,866
	12,113	Mannatech, Inc.		46,756
	3,990	Mead Johnson Nutrition Co., Class A		205,924
	5,456	MGP Ingredients, Inc.*		42,393
	3,116	National Beverage Corp.		36,146

See Notes to Financial Statements.

Schedule of Investments (Continued)

PowerShares FTSE RAFI US 1500 Small-Mid Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	8,811	Nu Skin Enterprises, Inc., Class A	$	264,859
	4,244	Nutraceutical International Corp.*		65,655
	13,429	Omega Protein Corp.*		71,845
	11,939	Prestige Brands Holdings, Inc.*		116,286
	7,706	PriceSmart, Inc.		191,725
	25,549	Reddy Ice Holdings, Inc.*		108,328
	1,182	Revlon, Inc., Class A*		20,709
	5,723	Sanderson Farms, Inc.		324,322
	17,673	Smart Balance, Inc.*		117,525
	19,364	Spartan Stores, Inc.		292,203
	9,549	Susser Holdings Corp.*		102,843
	6,374	Tootsie Roll Industries, Inc.		169,548
	6,725	TreeHouse Foods, Inc.*		284,400
	2,721	USANA Health Sciences, Inc.*		98,636
	13,629	Vector Group Ltd.		223,379
	3,068	Village Super Market, Inc., Class A		82,560
	4,069	WD-40 Co.		143,351
	4,365	Zhongpin, Inc.*		55,348
				8,262,650
		Energy—5.9%
	1,433	Adams Resources & Energy, Inc.		27,098
	34,182	Allis-Chalmers Energy, Inc.*		137,753
	1,273	Apco Oil And Gas International, Inc. (Cayman Islands)		35,568
	5,516	Approach Resources, Inc.*		49,368
	3,093	Arena Resources, Inc.*		114,224
	10,151	Atlas Energy, Inc.		366,248
	9,304	ATP Oil & Gas Corp.*		169,891
	11,168	Atwood Oceanics, Inc.*		406,627
	32,803	Basic Energy Services, Inc.*		334,919
	11,807	Berry Petroleum Co., Class A		382,193
	5,286	Bill Barrett Corp.*		180,147
	4,194	Brigham Exploration Co.*		81,825
	10,523	Bristow Group, Inc.*		407,345
	16,552	Bronco Drilling Co., Inc.*		79,118
	46,926	Cal Dive International, Inc.*		307,834
	2,198	CARBO Ceramics, Inc.		161,003
	5,360	Carrizo Oil & Gas, Inc.*		117,598
	2,734	Clayton Williams Energy, Inc.*		127,022
	22,505	Cloud Peak Energy, Inc.*		360,080
	1,864	Cobalt International Energy, Inc.*		21,455
	10,695	Comstock Resources, Inc.*		342,882
	7,296	Concho Resources, Inc.*		414,559
	1,839	Contango Oil & Gas Co.*		100,961
	2,516	Continental Resources, Inc.*		123,686
	17,301	Copano Energy LLC		453,286
	1,613	Core Laboratories NV (Netherlands)		241,773
	13,520	CVR Energy, Inc.*		114,785
	3,344	Dawson Geophysical Co.*		97,946
	12,429	Delek US Holdings, Inc.		87,127

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	69,603	Delta Petroleum Corp.*	$	107,189
	42,343	DHT Holdings, Inc.		199,859
	3,023	Dril-Quip, Inc.*		175,122
	56,414	Endeavour International Corp.*		91,391
	6,366	Energy XXI Bermuda Ltd. (Bermuda)		111,469
	15,854	ENGlobal Corp.*		56,282
	5,972	Geokinetics, Inc.*		52,195
	36,236	Global Industries Ltd.*		242,781
	8,185	GMX Resources, Inc.*		65,562
	6,584	Goodrich Petroleum Corp.*		111,467
	29,623	Gran Tierra Energy, Inc.*		179,515
	4,964	Gulf Island Fabrication, Inc.		118,987
	11,004	Gulfmark Offshore, Inc., Class A*		379,308
	4,399	Gulfport Energy Corp.*		54,987
	17,920	Harvest Natural Resources, Inc.*		158,234
	100,454	Hercules Offshore, Inc.*		397,798
	15,315	Hornbeck Offshore Services, Inc.*		374,758
	72,706	International Coal Group, Inc.*		383,161
	1,061	Interoil Corp. (Canada)*		71,161
	35,418	ION Geophysical Corp.*		212,862
	5,013	James River Coal Co.*		94,345
	10,839	Knightsbridge Tankers Ltd. (Bermuda)		205,291
	2,537	Lufkin Industries, Inc.		215,975
	11,498	Matrix Service Co.*		122,224
	14,512	McMoRan Exploration Co.*		173,273
	192,196	Meridian Resource Corp. (The)*		55,756
	36,998	Newpark Resources, Inc.*		247,147
	11,905	Nordic American Tanker Shipping Ltd. (Bermuda)		371,912
	21,336	Omega Navigation Enterprises, Inc., Class A (United Kingdom)		64,008
	33,001	Pacific Ethanol, Inc.*		35,311
	70,281	Parker Drilling Co.*		388,654
	19,011	Patriot Coal Corp.*		374,327
	10,163	Petroleum Development Corp.*		237,916
	24,570	PetroQuest Energy, Inc.*		145,209
	7,066	PHI, Inc.*		146,902
	30,283	Pioneer Drilling Co.*		222,277
	697	PrimeEnergy Corp.*		15,668
	8,174	Quicksilver Resources, Inc.*		113,373
	3,426	Rex Energy Corp.*		45,566
	4,612	Rex Stores Corp.*		79,142
	13,661	Rosetta Resources, Inc.*		340,159
	8,081	RPC, Inc.		110,306
	34,748	SandRidge Energy, Inc.*		260,957
	13,255	StealthGas, Inc. (Greece)		71,709
	23,416	Stone Energy Corp.*		381,681
	5,694	Superior Well Services, Inc.*		82,563
	11,538	Swift Energy Co.*		417,445
	3,409	T-3 Energy Services, Inc.*		101,418

See Notes to Financial Statements.

Schedule of Investments (Continued)

PowerShares FTSE RAFI US 1500 Small-Mid Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	10,070	Teekay Tankers Ltd., Class A (Marshall Islands)	$	128,292
	10,943	Tesco Corp. (Canada)*		136,897
	28,683	TETRA Technologies, Inc.*		352,514
	13,032	Trico Marine Services, Inc.*		42,745
	21,325	Tsakos Energy Navigation Ltd. (Bermuda)		312,198
	7,509	Union Drilling, Inc.*		49,785
	98,756	USEC, Inc.*		592,536
	18,433	VAALCO Energy, Inc.*		103,409
	3,870	Venoco, Inc.*		57,663
	19,409	W&T Offshore, Inc.		183,803
	13,834	Willbros Group, Inc.*		173,617
				16,642,382
		Financials—22.0%
	8,309	1st Source Corp.		158,951
	6,669	Abington Bancorp, Inc.		63,422
	9,604	Acadia Realty Trust REIT		183,244
	36,591	Advance America Cash Advance Centers, Inc.		209,301
	2,848	Agree Realty Corp. REIT		72,994
	115	Alexander's, Inc. REIT*		36,549
	8,065	American Campus Communities, Inc. REIT		227,191
	5,439	American Capital Agency Corp. REIT		149,627
	31,515	American Equity Investment Life Holding Co.		331,538
	3,499	American Physicians Capital, Inc.		117,007
	5,395	American Safety Insurance Holdings Ltd. (Bermuda)*		87,291
	6,780	Ameris Bancorp		75,461
	6,552	AMERISAFE, Inc.*		112,039
	2,579	Ames National Corp.		49,336
	4,940	AmTrust Financial Services, Inc.		67,332
	68,704	Anchor Bancorp Wisconsin, Inc.*		68,704
	34,144	Anworth Mortgage Asset Corp. REIT		229,106
	43,593	Arbor Realty Trust, Inc. REIT*		177,859
	9,438	Argo Group International Holdings Ltd. (Bermuda)*		311,360
	9,695	Arlington Asset Investment Corp., Class A		195,451
	3,453	Arrow Financial Corp.		95,993
	2,395	Artio Global Investors, Inc.		54,798
	64,241	Ashford Hospitality Trust, Inc. REIT*		597,441
	4,721	Asset Acceptance Capital Corp.*		34,747
	5,491	Associated Estates Realty Corp. REIT		77,039
	18,204	Assured Guaranty Ltd. (Bermuda)		392,296
	8,233	Avatar Holdings, Inc.*		196,275
	3,388	Baldwin & Lyons, Inc., Class B		85,005
	1,786	BancFirst Corp.		78,834
	21,829	Banco Latinoamericano de Comercio Exterior SA, Class E (Panama)		309,099

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	9,003	Bancorp, Inc.*	$	79,857
	11,438	BancTrust Financial Group, Inc.		70,801
	11,474	Bank Mutual Corp.		81,695
	2,758	Bank of the Ozarks, Inc.		106,100
	114,541	BankAtlantic Bancorp, Inc., Class A		300,097
	6,956	BankFinancial Corp.		67,195
	45,149	Banner Corp.		255,995
	5,091	Beneficial Mutual Bancorp, Inc.*		50,452
	5,545	Berkshire Hills Bancorp, Inc.		116,445
	22,019	BGC Partners, Inc., Class A		143,564
	31,124	Boston Private Financial Holdings, Inc.		246,813
	15,187	Broadpoint Gleacher Securities, Inc.*		65,000
	22,982	Brookline Bancorp, Inc.		252,572
	13,293	Calamos Asset Management, Inc., Class A		165,498
	2,698	Camden National Corp.		96,400
	7,125	Capital City Bank Group, Inc.		125,329
	62,281	Capital Trust, Inc., Class A REIT*		163,799
	36,783	Capitol Bancorp Ltd.		89,751
	3,145	Capitol Federal Financial		118,535
	32,178	CapLease, Inc. REIT		187,598
	28,631	Capstead Mortgage Corp. REIT		324,103
	10,774	Cardtronics, Inc.*		150,190
	6,757	Cash America International, Inc.		250,414
	32,641	Cathay General Bancorp		403,769
	29,597	Cedar Shopping Centers, Inc. REIT		235,592
	10,701	Center Financial Corp.*		72,125
	84,126	Central Pacific Financial Corp.*		183,395
	10,376	Chemical Financial Corp.		245,911
	110,882	Chimera Investment Corp. REIT		451,290
	5,389	Citizens & Northern Corp.		69,895
	548,585	Citizens Republic Bancorp, Inc.*		685,731
	9,066	Citizens, Inc.*		63,553
	53,002	City Bank*		14,841
	5,469	City Holding Co.		191,634
	6,638	CNA Surety Corp.*		111,319
	12,278	CoBiz Financial, Inc.		87,665
	11,852	Cogdell Spencer, Inc. REIT		89,838
	11,701	Cohen & Co., Inc. REIT*		67,047
	2,097	Cohen & Steers, Inc.		56,766
	6,287	Columbia Banking System, Inc.		141,332
	10,055	Community Bank System, Inc.		248,057
	5,776	Community Trust Bancorp, Inc.		173,396
	14,558	Compass Diversified Holdings		211,382
	21,896	CompuCredit Holdings Corp.		131,157
	42,160	Cousins Properties, Inc. REIT		339,810
	5,713	Cowen Group, Inc., Class A*		30,850
	15,730	Crawford & Co., Class B*		70,785
	1,617	Credit Acceptance Corp.*		72,927
	28,528	CVB Financial Corp.		314,093
	3,759	Danvers Bancorp, Inc.		61,460
	78,325	DCT Industrial Trust, Inc. REIT		411,990

See Notes to Financial Statements.

Schedule of Investments (Continued)

PowerShares FTSE RAFI US 1500 Small-Mid Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	40,832	DiamondRock Hospitality Co. REIT*	$	448,744
	6,929	Digital Realty Trust, Inc. REIT		406,732
	11,962	Dime Community Bancshares		152,516
	6,640	Dollar Financial Corp.*		155,442
	5,688	Donegal Group, Inc., Class A		82,078
	3,122	Duff & Phelps Corp., Class A		49,015
	5,578	DuPont Fabros Technology, Inc. REIT		123,664
	6,684	EastGroup Properties, Inc. REIT		273,242
	21,874	Education Realty Trust, Inc. REIT		154,649
	814	EMC Insurance Group, Inc.		19,748
	17,110	Employers Holdings, Inc.		281,973
	5,799	Encore Capital Group, Inc.*		133,435
	1,470	Enstar Group Ltd. (Bermuda)*		97,196
	6,879	Enterprise Financial Services Corp.		72,298
	10,070	Entertainment Properties Trust REIT		440,260
	3,282	Equity Lifestyle Properties, Inc. REIT		182,184
	11,818	Equity One, Inc. REIT		229,387
	2,382	Evercore Partners, Inc., Class A		85,371
	27,766	Extra Space Storage, Inc. REIT		417,045
	8,502	EZCORP, Inc., Class A*		176,076
	56,563	F.N.B. Corp.		527,167
	8,257	FBL Financial Group, Inc., Class A		213,361
	8,923	FBR Capital Markets Corp.*		42,206
	99,789	FelCor Lodging Trust, Inc. REIT*		809,289
	3,920	Financial Institutions, Inc.		63,034
	7,548	First Bancorp		123,108
	3,644	First Bancorp, Inc.		57,903
	158,674	First BanCorp.		336,389
	34,662	First Busey Corp.		175,043
	5,283	First Cash Financial Services, Inc.*		116,543
	51,357	First Commonwealth Financial Corp.		336,388
	8,910	First Community Bancshares, Inc.		148,351
	7,299	First Defiance Financial Corp.		98,536
	9,959	First Financial Bancorp		190,316
	3,985	First Financial Bankshares, Inc.		213,118
	3,278	First Financial Corp.		95,554
	10,901	First Financial Holdings, Inc.		153,922
	44,838	First Marblehead Corp. (The)*		157,381
	24,105	First Merchants Corp.		210,678
	5,132	First Mercury Financial Corp.		67,281
	24,893	First Midwest Bancorp, Inc.		378,374
	14,701	First Potomac Realty Trust REIT		238,450
	5,095	First South Bancorp, Inc.		71,024
	12,849	Flagstone Reinsurance Holdings Ltd. (Bermuda)		143,266
	9,769	Flushing Financial Corp.		132,956
	33,319	Forest City Enterprises, Inc., Class A*		514,779
	7,483	Forestar Group, Inc.*		168,667
	4,017	FPIC Insurance Group, Inc.*		109,343
	20,015	Franklin Street Properties Corp. REIT		295,021
	15,052	Frontier Financial Corp.*		53,736

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	4,405	GAMCO Investors, Inc., Class A	$	202,674
	4,421	Getty Realty Corp. REIT		109,508
	18,823	GFI Group, Inc.		129,879
	23,470	Glacier Bancorp, Inc.		433,960
	3,637	Gladstone Commercial Corp. REIT		58,919
	63,187	Glimcher Realty Trust REIT		430,303
	3,122	Government Properties Income Trust REIT		84,637
	3,274	Great Southern Bancorp, Inc.		79,853
	11,245	Greene Bankshares, Inc.*		142,137
	2,055	Greenhill & Co., Inc.		180,614
	3,701	Greenlight Capital Re Ltd., Class A (Cayman Islands)*		94,820
	34,473	Grubb & Ellis Co.*		61,362
	9,317	Hallmark Financial Services, Inc.*		109,102
	7,606	Hancock Holding Co.		310,933
	62,659	Hanmi Financial Corp.*		186,724
	9,205	Harleysville Group, Inc.		294,744
	6,023	Hatteras Financial Corp. REIT		160,633
	19,058	Healthcare Realty Trust, Inc. REIT		460,060
	6,690	Heartland Financial USA, Inc.		127,846
	45,462	Hersha Hospitality Trust REIT		262,316
	9,942	Hilltop Holdings, Inc.*		116,620
	3,087	Home BancShares, Inc.		86,806
	18,413	Horace Mann Educators Corp.		316,888
	4,185	IBERIABANK Corp.		257,963
	5,328	Independent Bank Corp.		138,208
	6,276	Infinity Property & Casualty Corp.		289,512
	35,335	Inland Real Estate Corp. REIT		332,856
	4,027	International Assets Holding Corp.*		65,117
	20,259	Investment Technology Group, Inc.*		351,899
	8,398	Investors Bancorp, Inc.*		116,816
	21,428	Investors Real Estate Trust REIT		187,066
	1,822	Kansas City Life Insurance Co.		61,948
	2,827	KBW, Inc.*		84,669
	2,560	Kearny Financial Corp.		26,189
	16,878	Kilroy Realty Corp. REIT		591,743
	34,103	Kite Realty Group Trust REIT		184,838
	25,711	Knight Capital Group, Inc., Class A*		399,806
	19,217	LaBranche & Co., Inc.*		94,932
	11,126	Lakeland Bancorp, Inc.		116,823
	4,637	Lakeland Financial Corp.		96,728
	19,267	LaSalle Hotel Properties REIT		507,685
	9,931	Lazard Ltd., Class A (Bermuda)		383,932
	5,110	LTC Properties, Inc. REIT		142,569
	124,568	Maguire Properties, Inc. REIT*		460,902
	13,711	Maiden Holdings Ltd. (Bermuda)		102,695
	15,679	MainSource Financial Group, Inc.		126,843
	4,487	MarketAxess Holdings, Inc.		70,536
	15,442	Max Capital Group Ltd. (Bermuda)		344,357
	14,564	MB Financial, Inc.		356,818
	16,243	Meadowbrook Insurance Group, Inc.		128,320

See Notes to Financial Statements.

Schedule of Investments (Continued)

PowerShares FTSE RAFI US 1500 Small-Mid Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	9,114	Medallion Financial Corp.	$	72,912
	19,822	Medical Properties Trust, Inc. REIT		199,211
	26,121	MGIC Investment Corp.*		272,442
	7,350	Mid-America Apartment Communities, Inc. REIT		406,235
	14,295	Mission West Properties, Inc. REIT		103,496
	8,412	Monmouth Real Estate Investment Corp., Class A REIT		65,277
	10,090	Nara Bancorp, Inc.*		90,810
	1,729	NASB Financial, Inc.		42,775
	23,035	National Financial Partners Corp.*		354,509
	5,459	National Health Investors, Inc. REIT		221,745
	1,423	National Interstate Corp.		29,726
	45,980	National Penn Bancshares, Inc.		336,574
	1,160	National Western Life Insurance Co., Class A		221,722
	4,850	Navigators Group, Inc. (The)*		194,631
	11,014	NBT Bancorp, Inc.		269,513
	12,407	Nelnet, Inc., Class A		247,644
	28,780	NewAlliance Bancshares, Inc.		375,003
	20,454	NewStar Financial, Inc.*		156,678
	5,640	Northfield Bancorp, Inc.		83,246
	86,607	NorthStar Realty Finance Corp. REIT		408,785
	28,263	Northwest Bancshares, Inc.		353,005
	6,012	OceanFirst Financial Corp.		77,314
	20,501	Ocwen Financial Corp.*		236,787
	33,347	Old National Bancorp		447,183
	12,910	Old Second Bancorp, Inc.		73,845
	14,601	OMEGA Healthcare Investors, Inc. REIT		292,312
	6,819	One Liberty Properties, Inc. REIT		116,264
	5,335	Oppenheimer Holdings, Inc., Class A		155,088
	7,162	optionsXpress Holdings, Inc.*		127,126
	16,706	Oriental Financial Group, Inc.		279,324
	130,196	Pacific Capital Bancorp*		226,541
	12,632	PacWest Bancorp		303,294
	7,458	Park National Corp.		510,873
	13,556	Parkway Properties, Inc. REIT		267,053
	8,702	Penson Worldwide, Inc.*		81,799
	6,029	Peoples Bancorp, Inc.		104,543
	2,700	Pico Holdings, Inc.*		95,985
	9,662	Pinnacle Financial Partners, Inc.*		147,635
	5,435	Piper Jaffray Cos.*		213,922
	18,828	PMA Capital Corp., Class A*		129,348
	119,286	PMI Group, Inc. (The)*		621,480
	2,467	Portfolio Recovery Associates, Inc.*		163,981
	22,863	Post Properties, Inc. REIT		588,951
	7,251	Potlatch Corp. REIT		271,622
	13,928	Presidential Life Corp.		164,072
	15,927	PrivateBancorp, Inc.		228,075
	6,522	Prosperity Bancshares, Inc.		255,793
	24,648	Provident Financial Services, Inc.		324,861

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	14,470	Provident New York Bancorp	$	148,607
	3,616	PS Business Parks, Inc. REIT		216,960
	35,873	Radian Group, Inc.		509,038
	137,813	RAIT Financial Trust REIT*		559,521
	18,229	Ramco-Gershenson Properties Trust REIT		227,133
	9,123	Renasant Corp.		150,803
	7,254	Republic Bancorp, Inc., Class A		175,184
	14,493	Resource Capital Corp. REIT		103,045
	3,082	Rewards Network, Inc.*		40,128
	3,040	Riskmetrics Group, Inc.*		68,218
	5,878	RLI Corp.		340,924
	14,028	S&T Bancorp, Inc.		337,373
	4,035	S.Y. Bancorp, Inc.		95,791
	6,829	Safety Insurance Group, Inc.		254,653
	9,862	Sanders Morris Harris Group, Inc.		58,876
	12,338	Sandy Spring Bancorp, Inc.		215,298
	3,104	Saul Centers, Inc. REIT		122,701
	2,619	SCBT Financial Corp.		104,210
	13,908	SeaBright Insurance Holdings, Inc.		151,319
	37,705	Seacoast Banking Corp. of Florida		82,197
	4,638	Shore Bancshares, Inc.		65,349
	4,832	Sierra Bancorp		60,303
	6,546	Signature Bank*		264,327
	4,790	Simmons First National Corp., Class A		134,503
	433,659	South Financial Group, Inc. (The)		333,917
	3,595	Southside Bancshares, Inc.		77,580
	10,977	Southwest Bancorp, Inc.		160,923
	9,009	Sovran Self Storage, Inc. REIT		332,342
	13,120	St. Joe Co. (The)*		433,485
	4,688	State Auto Financial Corp.		83,868
	8,954	StellarOne Corp.		133,504
	17,284	Sterling Bancorp		185,112
	37,652	Sterling Bancshares, Inc.		221,394
	106,145	Sterling Financial Corp.*		92,389
	16,821	Stewart Information Services Corp.		191,423
	3,872	Stifel Financial Corp.*		221,982
	120,012	Strategic Hotels & Resorts, Inc. REIT*		770,477
	2,835	Suffolk Bancorp		88,027
	14,650	Sun Bancorp, Inc.*		79,110
	9,549	Sun Communities, Inc. REIT		276,157
	45,868	Sunstone Hotel Investors, Inc. REIT*		583,900
	22,908	Superior Bancorp*		81,094
	14,088	SWS Group, Inc.		155,954
	10,358	Symetra Financial Corp.*		139,833
	5,431	Tanger Factory Outlet Centers, Inc. REIT		225,930
	7,837	Taubman Centers, Inc. REIT		339,891
	2,591	Taylor Capital Group, Inc.*		35,497
	9,215	Texas Capital Bancshares, Inc.*		183,379
	11,389	TFS Financial Corp.		161,040
	15,996	Thomas Weisel Partners Group, Inc.*		125,569
	2,380	Tompkins Financial Corp.		96,676

See Notes to Financial Statements.

Schedule of Investments (Continued)

PowerShares FTSE RAFI US 1500 Small-Mid Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	5,008	Tower Group, Inc.	$	115,484
	8,781	Townebank		140,759
	6,654	TradeStation Group, Inc.*		55,627
	5,188	Tree.com, Inc.*		47,211
	4,840	TriCo Bancshares		92,154
	37,559	TrustCo Bank Corp. NY		249,767
	6,748	UMB Financial Corp.		284,226
	29,898	Umpqua Holdings Corp.		446,676
	7,753	Union First Market Bankshares Corp.		130,095
	22,646	United America Indemnity Ltd., Class A*		215,137
	16,661	United Bankshares, Inc.		483,835
	51,871	United Community Banks, Inc.*		302,927
	3,971	United Financial Bancorp, Inc.		55,515
	9,867	United Fire & Casualty Co.		225,658
	1,836	Universal Health Realty Income Trust REIT		60,992
	8,124	Universal Insurance Holdings, Inc.		41,026
	5,830	Univest Corp. of Pennsylvania		114,093
	1,048	Urstadt Biddle Properties, Inc. REIT		15,510
	5,875	Urstadt Biddle Properties, Inc., Class A REIT		99,052
	38,426	U-Store-It Trust REIT		331,232
	15,436	Validus Holdings Ltd.		394,699
	10,347	Virginia Commerce Bancorp, Inc.*		73,774
	6,851	W Holding Co., Inc. (Puerto Rico)*		36,653
	11,615	W.P. Carey & Co. LLC		357,510
	11,093	Waddell & Reed Financial, Inc., Class A		411,772
	13,473	Washington REIT		423,726
	6,328	Washington Trust Bancorp, Inc.		114,600
	14,532	WesBanco, Inc.		280,177
	29,108	West Coast Bancorp		100,132
	5,406	Westamerica Bancorp		317,711
	18,642	Western Alliance Bancorp*		162,185
	9,729	Westfield Financial, Inc.		88,534
	6,917	Wilshire Bancorp, Inc.		75,119
	5,122	Winthrop Realty Trust REIT		69,147
	7,587	Wintrust Financial Corp.		282,995
	4,373	World Acceptance Corp.*		154,279
	2,869	WSFS Financial Corp.		120,814
				62,555,177
		Health Care—7.0%
	1,187	Abraxis Bioscience, Inc.*		59,314
	17,835	Affymetrix, Inc.*		123,775
	3,692	Air Methods Corp.*		122,131
	8,398	Albany Molecular Research, Inc.*		67,184
	2,456	Alexion Pharmaceuticals, Inc.*		134,785
	5,407	Align Technology, Inc.*		91,811
	11,111	Alkermes, Inc.*		145,554
	20,328	Alliance HealthCare Services, Inc.*		108,958
	27,182	Allied Healthcare International, Inc.*		76,381
	5,583	Allscripts-Misys Healthcare Solutions, Inc.*		112,609

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	4,038	Amedisys, Inc.*	$	232,508
	4,926	America Service Group, Inc.		83,545
	6,082	American Dental Partners, Inc.*		78,336
	7,343	American Medical Systems Holdings, Inc.*		131,587
	22,456	AMN Healthcare Services, Inc.*		205,248
	13,763	AmSurg Corp., Class A*		285,169
	2,166	Analogic Corp.		103,578
	5,798	Angiodynamics, Inc.*		92,768
	3,205	Assisted Living Concepts, Inc., Class A*		112,496
	3,688	Bio-Reference Labs, Inc.*		86,299
	20,172	BioScrip, Inc.*		180,338
	5,969	Bruker Corp.*		91,266
	55,184	Cambrex Corp.*		242,258
	3,019	Cantel Medical Corp.		60,259
	6,825	Capital Senior Living Corp.*		35,900
	3,880	Caraco Pharmaceutical Laboratories Ltd.*		25,026
	6,884	Catalyst Health Solutions, Inc.*		291,262
	15,133	Celera Corp.*		113,044
	4,022	Chemed Corp.		221,250
	940	Computer Programs & Systems, Inc.		42,356
	11,164	CONMED Corp.*		248,287
	9,883	Cooper Cos., Inc. (The)		384,350
	1,783	CorVel Corp.*		59,374
	15,306	Cross Country Healthcare, Inc.*		153,366
	5,854	Cubist Pharmaceuticals, Inc.*		131,247
	1,897	Dionex Corp.*		154,738
	7,821	Eclipsys Corp.*		161,738
	4,820	Emdeon, Inc., Class A*		78,903
	1,056	Emergent Biosolutions, Inc.*		17,192
	7,361	Emeritus Corp.*		164,886
	1,642	Ensign Group, Inc. (The)		28,505
	5,594	Enzon Pharmaceuticals, Inc.*		59,185
	11,822	eResearchTechnology, Inc.*		87,128
	5,994	ev3, Inc.*		114,665
	38,449	Five Star Quality Care, Inc.*		113,809
	6,851	Gen-Probe, Inc.*		324,669
	9,433	Gentiva Health Services, Inc.*		270,538
	6,940	Greatbatch, Inc.*		155,040
	4,098	Haemonetics Corp.*		237,110
	7,022	Hanger Orthopedic Group, Inc.*		130,890
	25,078	HealthTronics, Inc.*		89,027
	12,388	Healthways, Inc.*		201,801
	1,364	HMS Holdings Corp.*		72,974
	2,192	ICU Medical, Inc.*		78,057
	5,738	IDEXX Laboratories, Inc.*		379,511
	7,079	Illumina, Inc.*		296,398
	8,711	Immucor, Inc.*		186,503
	3,043	Integra LifeSciences Holdings Corp.*		138,244
	10,900	Invacare Corp.		288,087
	14,808	inVentiv Health, Inc.*		341,028
	6,513	Kendle International, Inc.*		107,790

See Notes to Financial Statements.

Schedule of Investments (Continued)

PowerShares FTSE RAFI US 1500 Small-Mid Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	62,904	KV Pharmaceutical Co., Class A*	$	97,501
	1,611	Landauer, Inc.		109,790
	8,366	LCA-Vision, Inc.*		70,525
	2,137	LHC Group, Inc.*		72,872
	3,728	Luminex Corp.*		60,617
	9,864	Martek Biosciences Corp.*		217,304
	3,286	Masimo Corp.*		76,925
	4,147	MedAssets, Inc.*		94,676
	20,494	MedCath Corp.*		203,710
	5,059	Medical Action Industries, Inc.*		60,050
	7,864	Medicines Co. (The)*		57,722
	8,042	Medicis Pharmaceutical Corp., Class A		204,106
	4,123	MedQuist, Inc.		38,385
	3,920	Meridian Bioscience, Inc.		78,361
	5,431	Merit Medical Systems, Inc.*		87,819
	7,499	Molina Healthcare, Inc.*		218,746
	3,396	MWI Veterinary Supply, Inc.*		142,462
	4,958	Myriad Genetics, Inc.*		119,042
	3,221	National Healthcare Corp.		113,895
	4,759	Natus Medical, Inc.*		81,093
	4,946	Odyssey HealthCare, Inc.*		103,025
	5,699	Omnicell, Inc.*		76,082
	2,152	Onyx Pharmaceuticals, Inc.*		62,128
	3,719	Orthofix International NV (Netherlands)*		127,153
	3,974	OSI Pharmaceuticals, Inc.*		233,155
	7,345	Par Pharmaceutical Cos., Inc.*		199,343
	12,233	PAREXEL International Corp.*		288,454
	36,165	PDL BioPharma, Inc.		210,480
	8,353	Perrigo Co.		509,784
	12,514	PharMerica Corp.*		241,520
	6,464	Phase Forward, Inc.*		108,660
	4,400	Providence Service Corp. (The)*		73,084
	15,426	PSS World Medical, Inc.*		361,431
	13,830	Psychiatric Solutions, Inc.*		444,911
	1,917	Quality Systems, Inc.		122,707
	5,253	RehabCare Group, Inc.*		149,816
	22,638	Res-Care, Inc.*		263,506
	5,406	ResMed, Inc.*		369,933
	19,037	RTI Biologics, Inc.*		72,912
	2,615	Salix Pharmaceuticals Ltd.*		105,123
	4,759	Select Medical Holdings Corp.*		41,356
	5,901	Sirona Dental Systems, Inc.*		246,013
	25,188	Skilled Healthcare Group, Inc., Class A*		168,508
	2,435	SonoSite, Inc.*		81,621
	10,590	STERIS Corp.		352,435
	29,484	Sun Healthcare Group, Inc.*		263,587
	84,590	Sunrise Senior Living, Inc.*		470,320
	3,643	SurModics, Inc.*		67,760
	9,991	Symmetry Medical, Inc.*		115,496
	6,931	Syneron Medical Ltd. (Israel)*		79,707
	2,637	Team Health Holdings, Inc.*		41,454

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	2,441	Techne Corp.	$	161,716
	4,553	Thoratec Corp.*		203,018
	16,787	TomoTherapy, Inc.*		65,301
	17,970	Triple-S Management Corp., Class B*		327,054
	2,088	United Therapeutics Corp.*		118,786
	5,888	Valeant Pharmaceuticals International*		264,960
	5,592	Varian, Inc.*		289,610
	15,902	VCA Antech, Inc.*		452,571
	15,229	ViroPharma, Inc.*		193,713
	2,061	Volcano Corp.*		49,505
	6,782	West Pharmaceutical Services, Inc.		283,827
	4,616	Wright Medical Group, Inc.*		86,689
	4,193	Zoll Medical Corp.*		128,096
				19,893,946
		Industrials—19.1%
	2,138	AAON, Inc.		51,611
	14,221	AAR Corp.*		346,708
	39,853	ACCO Brands Corp.*		363,858
	13,007	Aceto Corp.		86,757
	17,371	Actuant Corp., Class A		398,317
	12,173	Administaff, Inc.		269,510
	2,090	Advisory Board Co. (The)*		68,824
	4,062	Aegean Marine Petroleum Network, Inc. (Greece)		106,587
	2,423	Aerovironment, Inc.*		63,434
	49,391	Air Transport Services Group, Inc.*		271,650
	33,052	Aircastle Ltd. (Bermuda)		396,955
	83,623	AirTran Holdings, Inc.*		441,529
	3,707	Alamo Group, Inc.		87,337
	1,454	Allegiant Travel Co.*		74,779
	10,171	Altra Holdings, Inc.*		154,192
	2,456	American Commercial Lines, Inc.*		50,102
	6,326	American Railcar Industries, Inc.		103,430
	21,702	American Reprographics Co.*		216,803
	875	American Science & Engineering, Inc.		65,756
	5,409	American Woodmark Corp.		125,002
	2,605	Ameron International Corp.		180,761
	2,443	Ampco-Pittsburgh Corp.		62,810
	11,911	Apogee Enterprises, Inc.		163,657
	16,301	Applied Industrial Technologies, Inc.		501,745
	3,547	Applied Signal Technology, Inc.		66,293
	3,712	Argon ST, Inc.*		96,512
	12,417	Arkansas Best Corp.		378,222
	8,769	Astec Industries, Inc.*		290,429
	6,153	ATC Technology Corp.*		125,767
	8,753	Atlas Air Worldwide Holdings, Inc.*		483,778
	3,001	AZZ, Inc.		121,901
	2,176	Badger Meter, Inc.		89,999
	12,269	Baldor Electric Co.		471,252
	16,061	Barnes Group, Inc.		334,069

See Notes to Financial Statements.

Schedule of Investments (Continued)

PowerShares FTSE RAFI US 1500 Small-Mid Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	3,152	Barrett Business Services, Inc.	$	48,541
	18,329	Beacon Roofing Supply, Inc.*		406,904
	15,441	Belden, Inc.		424,010
	12,191	Blount International, Inc.*		136,783
	13,355	Bowne & Co., Inc.		149,309
	15,206	Brady Corp., Class A		522,478
	5,638	Broadwind Energy, Inc.*		22,326
	5,384	Bucyrus International, Inc.		339,246
	38,830	Builders FirstSource, Inc.*		147,942
	3,698	Canadian Solar, Inc. (Canada)*		64,049
	4,946	Cascade Corp.		172,418
	18,765	Casella Waste Systems, Inc., Class A*		96,827
	24,100	CBIZ, Inc.*		168,941
	11,050	CDI Corp.		192,602
	9,539	Celadon Group, Inc.*		142,417
	36,214	Cenveo, Inc.*		310,354
	15,371	Ceradyne, Inc.*		341,236
	9,415	Chart Industries, Inc.*		216,451
	19,885	China BAK Battery, Inc.*		39,969
	3,368	CIRCOR International, Inc.		116,061
	9,183	CLARCOR, Inc.		347,301
	4,359	Clean Harbors, Inc.*		276,491
	6,610	Colfax Corp.*		86,261
	10,083	Columbus McKinnon Corp.*		181,796
	14,244	Comfort Systems USA, Inc.		200,556
	30,023	Commercial Vehicle Group, Inc.*		281,616
	5,406	Consolidated Graphics, Inc.*		226,565
	4,660	Copa Holdings SA, Class A (Panama)		264,129
	9,199	Copart, Inc.*		328,312
	6,060	Cornell Cos., Inc.*		166,650
	10,625	Corporate Executive Board Co. (The)		291,763
	2,432	CoStar Group, Inc.*		106,886
	6,232	Courier Corp.		107,128
	4,401	CRA International, Inc.*		102,235
	3,902	Cubic Corp.		145,584
	11,482	Curtiss-Wright Corp.		409,563
	13,307	Danaos Corp. (Greece)*		67,200
	7,048	Diamond Management & Technology Consultants, Inc.		57,230
	17,472	Diana Shipping, Inc. (Greece)*		267,671
	70,433	DryShips, Inc. (Greece)*		408,511
	4,357	Ducommun, Inc.		99,732
	5,845	DXP Enterprises, Inc.*		96,969
	30,239	Dycom Industries, Inc.*		321,138
	4,503	Dynamex, Inc.*		79,658
	36,552	Eagle Bulk Shipping, Inc.*		211,636
	9,199	Encore Wire Corp.		204,310
	21,921	Energy Conversion Devices, Inc.*		156,078
	31,824	EnergySolutions, Inc.		230,724
	17,116	EnerSys*		442,962
	11,354	Ennis, Inc.		209,935

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	8,124	EnPro Industries, Inc.*	$	256,556
	6,335	ESCO Technologies, Inc.		195,435
	23,962	Euroseas Ltd.		96,567
	75,226	Evergreen Solar, Inc.*		84,253
	28,742	Excel Maritime Carriers Ltd. (Liberia)*		204,643
	2,704	Exponent, Inc.*		80,606
	44,628	ExpressJet Holdings, Inc.*		178,512
	27,451	Federal Signal Corp.		221,255
	22,067	Force Protection, Inc.*		118,058
	5,285	Forward Air Corp.		148,086
	9,290	Franklin Covey Co.*		73,205
	4,471	Franklin Electric Co., Inc.		156,440
	6,865	FreightCar America, Inc.		196,476
	11,110	FTI Consulting, Inc.*		456,954
	14,914	Furmanite Corp.*		76,061
	5,244	Fushi Copperweld, Inc.*		57,999
	8,243	G&K Services, Inc., Class A		226,600
	15,277	Genco Shipping & Trading Ltd.*		353,815
	8,304	Genesee & Wyoming, Inc., Class A*		324,686
	13,077	Geo Group, Inc. (The)*		276,971
	3,883	GeoEye, Inc.*		110,666
	16,455	Gibraltar Industries, Inc.*		247,154
	14,066	Global Ship Lease, Inc., Class A*		46,418
	3,746	Gorman-Rupp Co. (The)		104,476
	7,797	GP Strategies Corp.*		62,922
	12,199	Graco, Inc.		423,061
	27,061	GrafTech International Ltd.*		456,248
	17,131	Great Lakes Dredge & Dock Corp.		92,850
	20,303	Greenbrier Cos., Inc.*		330,533
	20,859	Griffon Corp.*		294,112
	24,236	H&E Equipment Services, Inc.*		286,227
	1,182	Harbin Electric, Inc.*		25,898
	8,078	Hardinge, Inc.		80,780
	15,358	Hawaiian Holdings, Inc.*		109,042
	7,346	Healthcare Services Group, Inc.		157,866
	15,671	Heartland Express, Inc.		259,198
	1,428	HEICO Corp.		61,504
	2,862	HEICO Corp., Class A		95,991
	4,650	Heidrick & Struggles International, Inc.		122,807
	4,220	Herley Industries, Inc.*		61,823
	17,445	Herman Miller, Inc.		370,183
	30,807	Hexcel Corp.*		499,073
	7,366	Hill International, Inc.*		47,290
	39,900	Horizon Lines, Inc., Class A		218,253
	4,875	Houston Wire & Cable Co.		64,106
	11,310	Hub Group, Inc., Class A*		362,033
	13,784	Hudson Highland Group, Inc.*		77,328
	3,212	Hurco Cos., Inc.*		62,506
	4,845	Huron Consulting Group, Inc.*		113,470
	3,564	ICF International, Inc.*		82,542
	5,263	IHS, Inc., Class A*		266,676

See Notes to Financial Statements.

Schedule of Investments (Continued)

PowerShares FTSE RAFI US 1500 Small-Mid Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	4,593	II-VI, Inc.*	$	164,705
	7,609	Innerworkings, Inc.*		45,502
	6,362	Insituform Technologies, Inc., Class A*		152,497
	8,024	Insteel Industries, Inc.		98,374
	16,799	Integrated Electrical Services, Inc.*		104,658
	21,074	Interface, Inc., Class A		275,648
	11,114	Interline Brands, Inc.*		231,282
	2,455	International Shipholding Corp.		74,485
	4,591	John Bean Technologies Corp.		84,337
	6,771	Kadant, Inc.*		135,488
	8,171	Kaman Corp.		223,967
	3,395	KAR Auction Services, Inc.*		52,826
	7,100	Kaydon Corp.		295,573
	13,858	Kforce, Inc.*		192,488
	1,857	KHD Humboldt Wedag International AG (Germany)		16,173
	23,254	Kimball International, Inc., Class B		186,962
	13,164	Kirby Corp.*		553,941
	9,235	Knight Transportation, Inc.		196,613
	17,803	Knoll, Inc.		248,886
	12,409	Korn/Ferry International*		201,150
	3,911	Labarge, Inc.*		48,340
	6,722	Ladish Co., Inc.*		184,788
	8,815	Landstar System, Inc.		389,799
	3,325	Lawson Products, Inc.		54,031
	7,719	Layne Christensen Co.*		211,346
	3,749	LB Foster Co., Class A*		110,970
	2,235	Lindsay Corp.		84,997
	3,153	LMI Aerospace, Inc.*		54,421
	14,676	LSI Industries, Inc.		103,172
	10,505	Lydall, Inc.*		84,670
	7,095	M&F Worldwide Corp.*		217,533
	27,022	Macquarie Infrastructure Co. LLC*		439,108
	6,519	Marten Transport Ltd.*		142,440
	13,166	MasTec, Inc.*		164,707
	7,218	McGrath Rentcorp		187,596
	13,900	Metalico, Inc.*		91,740
	3,587	Michael Baker Corp.*		126,765
	2,411	Middleby Corp. (The)*		147,360
	6,766	Miller Industries, Inc.		96,754
	8,404	Mine Safety Appliances Co.		246,994
	15,627	Mobile Mini, Inc.*		259,721
	18,992	Mueller Industries, Inc.		563,113
	70,129	Mueller Water Products, Inc., Class A		392,722
	4,365	MYR Group, Inc.*		78,264
	8,223	NACCO Industries, Inc., Class A		714,908
	18,419	Navigant Consulting, Inc.*		237,237
	31,491	Navios Maritime Holdings, Inc. (Greece)		218,548
	133,206	NCI Building Systems, Inc.*		1,835,579
	3,377	Nordson Corp.		242,536
	5,260	Northwest Pipe Co.*		126,871

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	111,554	Oceanfreight, Inc. (United Kingdom)*	$	82,550
	12,164	Old Dominion Freight Line, Inc.*		436,444
	15,358	On Assignment, Inc.*		107,967
	12,934	Orbital Sciences Corp.*		237,727
	3,235	Orion Marine Group, Inc.*		61,336
	18,686	Otter Tail Corp.		415,203
	47,218	Pacer International, Inc.*		313,528
	16,370	Paragon Shipping, Inc., Class A		78,085
	9,102	Park-Ohio Holdings Corp.*		117,143
	334	Patriot Transportation Holding, Inc.*		28,036
	10,945	Pike Electric Corp.*		117,659
	17,864	Pinnacle Airlines Corp.*		130,586
	11,099	Polypore International, Inc.*		196,563
	3,351	Powell Industries, Inc.*		112,527
	927	Preformed Line Products Co.		27,810
	3,243	Protection One, Inc.*		50,169
	9,429	Quanex Building Products Corp.		179,151
	5,426	RailAmerica, Inc.*		69,941
	3,463	Raven Industries, Inc.		105,137
	4,791	RBC Bearings, Inc.*		151,204
	47,347	Republic Airways Holdings, Inc.*		296,392
	11,077	Resources Connection, Inc.*		194,291
	5,576	Robbins & Myers, Inc.		144,474
	5,875	Rollins, Inc.		127,781
	7,299	Rush Enterprises, Inc., Class B*		100,434
	17,732	Rush Enterprises, Inc., Class A*		287,613
	6,865	Safe Bulkers, Inc. (Marshall Islands)		54,645
	14,548	Saia, Inc.*		241,060
	9,971	Sauer-Danfoss, Inc.*		162,029
	4,342	Schawk, Inc.		82,281
	13,075	School Specialty, Inc.*		306,739
	26,306	Seaspan Corp. (Hong Kong)		308,043
	40,556	SFN Group, Inc.*		346,754
	9,032	Simpson Manufacturing Co., Inc.		306,998
	4,334	Standard Parking Corp.*		73,201
	19,814	Standard Register Co. (The)		102,042
	5,492	Standex International Corp.		131,094
	2,461	Stanley, Inc.*		77,841
	36,709	Star Bulk Carriers Corp.		104,621
	7,774	Stericycle, Inc.*		457,889
	3,991	Sterling Construction Co., Inc.*		69,843
	1,789	Sun Hydraulics Corp.		50,110
	9,374	SunPower Corp., Class A*		155,140
	7,302	SunPower Corp., Class B*		109,822
	5,720	Sykes Enterprises, Inc.*		130,016
	6,642	TAL International Group, Inc.		172,626
	32,392	TBS International PLC, Class A (Ireland)*		261,727
	5,129	Team, Inc.*		89,245
	13,606	Tecumseh Products Co., Class A*		173,885
	3,937	Tecumseh Products Co., Class B*		51,653
	10,943	Teledyne Technologies, Inc.*		477,115

See Notes to Financial Statements.

Schedule of Investments (Continued)

PowerShares FTSE RAFI US 1500 Small-Mid Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	5,576	Tennant Co.	$	192,316
	14,434	Tetra Tech, Inc.*		351,468
	3,535	Textainer Group Holdings Ltd.		81,164
	10,294	Thermadyne Holdings Corp.*		112,925
	15,959	Titan International, Inc.		198,051
	5,138	Titan Machinery, Inc.*		73,884
	8,173	Toro Co. (The)		465,371
	8,496	Towers Watson & Co., Class A		407,808
	12,114	Tredegar Corp.		206,665
	1,723	Trex Co., Inc.*		42,196
	14,009	Trimas Corp.*		142,472
	4,882	Triumph Group, Inc.		378,648
	19,136	TrueBlue, Inc.*		302,157
	5,901	Twin Disc, Inc.		83,322
	21,729	Ultrapetrol Bahamas Ltd.*		132,981
	7,348	Universal Forest Products, Inc.		308,983
	5,257	Universal Truckload Services, Inc.*		95,993
	3,456	US Ecology, Inc.		53,914
	5,651	USA Truck, Inc.*		104,091
	3,337	Valmont Industries, Inc.		277,939
	3,486	Verisk Analytics, Inc., Class A*		97,678
	10,548	Viad Corp.		246,823
	5,932	Vicor Corp.*		89,692
	13,955	Volt Information Sciences, Inc.*		174,996
	1,182	VSE Corp.		47,505
	39,082	Wabash National Corp.*		379,877
	15,346	WABCO Holdings, Inc.		509,334
	7,218	Wabtec Corp.		343,432
	11,372	Waste Services, Inc.*		127,821
	6,307	Watsco, Inc.		373,501
	11,211	Watts Water Technologies, Inc., Class A		397,766
	3,351	Willis Lease Finance Corp.*		47,048
	11,075	Woodward Governor Co.		354,954
	343,038	YRC Worldwide, Inc.*		190,969
				54,374,503
		Information Technology—15.9%
	6,180	ACI Worldwide, Inc.*		116,122
	1,879	Acme Packet, Inc.*		49,117
	5,519	Actel Corp.*		85,655
	22,723	Acxiom Corp.*		433,555
	32,650	Adaptec, Inc.*		100,889
	45,241	ADC Telecommunications, Inc.*		362,380
	10,501	ADTRAN, Inc.		281,112
	7,546	Advanced Energy Industries, Inc.*		111,077
	2,277	Advent Software, Inc.*		102,875
	10,640	Agilysys, Inc.		115,444
	14,732	Anadigics, Inc.*		74,102
	4,668	Anaren, Inc.*		69,180
	788	Ancestry.com, Inc.*		15,468
	7,787	ANSYS, Inc.*		350,415

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	9,180	Applied Micro Circuits Corp.*	$	103,550
	9,783	Ariba, Inc.*		139,603
	36,273	Arris Group, Inc.*		445,795
	3,274	AsiaInfo Holdings, Inc.*		93,014
	5,710	Atheros Communications, Inc.*		221,776
	92,202	Atmel Corp.*		501,579
	8,626	ATMI, Inc.*		156,389
	11,161	Avago Technologies Ltd. (Singapore)*		229,024
	21,247	Aviat Networks, Inc.*		138,106
	15,019	Avid Technology, Inc.*		219,277
	71,007	Axcelis Technologies, Inc.*		168,997
	3,045	Bel Fuse, Inc., Class B		71,314
	7,596	Black Box Corp.		236,919
	4,839	Blackbaud, Inc.		111,539
	2,358	Blackboard, Inc.*		100,333
	3,114	Blue Coat Systems, Inc.*		101,298
	15,286	Brooks Automation, Inc.*		148,580
	4,665	Cabot Microelectronics Corp.*		178,949
	53,443	Cadence Design Systems, Inc.*		398,685
	1,394	Cass Information Systems, Inc.		44,329
	29,162	CDC Corp., Class A (Hong Kong)*		77,571
	11,238	Checkpoint Systems, Inc.*		253,866
	10,579	China Security & Surveillance Technology, Inc. (China)*		62,945
	65,224	Ciber, Inc.*		258,939
	11,319	Ciena Corp.*		209,288
	8,672	Cirrus Logic, Inc.*		110,221
	4,550	Cogent, Inc.*		47,093
	7,550	Cognex Corp.		157,871
	7,457	Cogo Group, Inc.*		52,497
	6,414	Coherent, Inc.*		240,974
	5,946	Cohu, Inc.		96,028
	56,941	Compuware Corp.*		489,693
	7,314	Comtech Telecommunications Corp.*		228,489
	3,498	Concur Technologies, Inc.*		146,601
	4,471	CPI International, Inc.*		60,046
	6,190	Cree, Inc.*		453,170
	8,168	CSG Systems International, Inc.*		185,577
	15,960	CTS Corp.		167,580
	7,777	Cybersource Corp.*		199,713
	6,825	Cymer, Inc.*		233,074
	20,852	Cypress Semiconductor Corp.*		268,782
	12,839	Daktronics, Inc.		107,591
	6,632	DealerTrack Holdings, Inc.*		101,138
	2,668	Deltek, Inc.*		20,997
	2,789	DG Fastchannel, Inc.*		98,117
	4,426	Dice Holdings, Inc.*		38,373
	7,737	Digi International, Inc.*		82,863
	8,604	Digital River, Inc.*		240,396
	6,409	Diodes, Inc.*		137,601
	12,140	DSP Group, Inc.*		99,184

See Notes to Financial Statements.

Schedule of Investments (Continued)

PowerShares FTSE RAFI US 1500 Small-Mid Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	5,748	Dynamics Research Corp.*	$	82,196
	42,258	EarthLink, Inc.		381,167
	6,046	Electro Rent Corp.		86,397
	8,358	Electro Scientific Industries, Inc.*		115,090
	15,568	Electronics for Imaging, Inc.*		200,049
	6,864	EMS Technologies, Inc.*		109,069
	17,600	Emulex Corp.*		206,800
	36,657	Entegris, Inc.*		226,907
	16,000	Epicor Software Corp.*		146,880
	9,420	EPIQ Systems, Inc.*		113,511
	4,598	Equinix, Inc.*		462,789
	12,338	Euronet Worldwide, Inc.*		196,544
	8,587	Exar Corp.*		63,458
	987	ExlService Holdings, Inc.*		15,713
	27,571	Extreme Networks, Inc.*		91,811
	4,995	F5 Networks, Inc.*		341,808
	3,328	FactSet Research Systems, Inc.		250,332
	11,384	Fair Isaac Corp.		239,747
	2,928	FARO Technologies, Inc.*		73,815
	9,234	FEI Co.*		207,765
	7,476	Finisar Corp.*		111,841
	8,860	FormFactor, Inc.*		132,989
	2,480	Forrester Research, Inc.*		79,633
	6,544	Gartner, Inc.*		157,580
	21,229	Genpact Ltd.*		358,346
	17,380	Gerber Scientific, Inc.*		125,136
	19,571	GigaMedia Ltd. (Taiwan, Republic of China)*		58,909
	15,355	Global Cash Access Holdings, Inc.*		133,281
	9,127	Global Payments, Inc.		390,727
	7,063	Globecomm Systems, Inc.*		55,021
	8,167	GSI Commerce, Inc.*		222,551
	19,310	Harmonic, Inc.*		132,080
	11,503	Heartland Payment Systems, Inc.		211,425
	1,752	Hittite Microwave Corp.*		89,843
	2,521	Hughes Communications, Inc.*		70,336
	20,624	Hutchinson Technology, Inc.*		125,600
	15,190	Hypercom Corp.*		63,039
	3,536	iGATE Corp.*		43,776
	41,170	Imation Corp.*		446,283
	10,215	Infinera Corp.*		93,467
	15,713	infoGROUP, Inc.*		125,861
	7,091	Informatica Corp.*		177,346
	8,275	InfoSpace, Inc.*		86,639
	46,699	Integrated Device Technology, Inc.*		308,680
	4,709	InterDigital, Inc.*		130,298
	11,463	Intermec, Inc.*		131,481
	16,089	Internap Network Services Corp.*		92,994
	20,098	International Rectifier Corp.*		462,656
	7,923	Internet Brands, Inc., Class A*		82,003
	28,302	Intersil Corp., Class A		421,134

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	4,247	Intevac, Inc.*	$	59,118
	1,688	IPG Photonics Corp.*		29,557
	5,906	Itron, Inc.*		470,177
	4,573	Ixia*		46,873
	5,547	IXYS Corp.*		50,089
	5,811	j2 Global Communications, Inc.*		139,929
	16,253	Jack Henry & Associates, Inc.		414,777
	5,334	JDA Software Group, Inc.*		154,153
	29,718	JDS Uniphase Corp.*		386,037
	5,909	Kenexa Corp.*		88,694
	7,094	Knot, Inc. (The)*		57,532
	13,843	Kulicke & Soffa Industries, Inc.*		113,513
	24,170	L-1 Identity Solutions, Inc.*		209,554
	25,827	Lattice Semiconductor Corp.*		136,108
	27,686	Lawson Software, Inc.*		214,843
	10,663	Lender Processing Services, Inc.		402,528
	20,727	Lionbridge Technologies, Inc.*		112,133
	3,153	Liquidity Services, Inc.*		35,850
	4,608	Littelfuse, Inc.*		194,596
	4,246	Loral Space & Communications, Inc.*		182,833
	2,975	Manhattan Associates, Inc.*		85,263
	6,938	ManTech International Corp., Class A*		312,418
	2,861	MAXIMUS, Inc.		177,125
	4,735	Measurement Specialties, Inc.*		77,985
	26,966	Mentor Graphics Corp.*		242,424
	5,079	Mercury Computer Systems, Inc.*		65,316
	10,293	Methode Electronics, Inc., Class A		114,252
	7,177	Micrel, Inc.		83,756
	10,221	MICROS Systems, Inc.*		379,812
	14,164	Microsemi Corp.*		234,556
	1,563	MicroStrategy, Inc., Class A*		119,726
	13,875	MKS Instruments, Inc.*		314,685
	21,371	ModusLink Global Solutions, Inc.*		190,843
	2,819	Monolithic Power Systems, Inc.*		69,488
	4,426	Monotype Imaging Holdings, Inc.*		46,207
	4,267	MTS Systems Corp.		127,455
	3,325	Multi-Fineline Electronix, Inc.*		86,184
	43,800	Nam Tai Electronics, Inc. (Hong Kong)*		219,876
	7,030	National Instruments Corp.		243,097
	2,183	NCI, Inc., Class A*		62,019
	20,439	Ness Technologies, Inc.*		132,240
	9,338	Net 1 UEPS Technologies, Inc.*		153,143
	5,573	NETGEAR, Inc.*		150,805
	1,635	Netlogic Microsystems, Inc.*		50,963
	4,820	Netscout Systems, Inc.*		69,986
	8,576	NeuStar, Inc., Class A*		209,855
	11,509	Newport Corp.*		136,151
	12,018	Novatel Wireless, Inc.*		82,323
	70,743	Novell, Inc.*		396,868
	13,476	OmniVision Technologies, Inc.*		236,639
	39,205	Openwave Systems, Inc.*		87,427

See Notes to Financial Statements.

Schedule of Investments (Continued)

PowerShares FTSE RAFI US 1500 Small-Mid Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	3,729	Oplink Communications, Inc.*	$	56,345
	30,116	Opnext, Inc.*		70,773
	14,392	Orbotech Ltd. (Israel)*		174,143
	4,107	OSI Systems, Inc.*		106,946
	13,121	Palm, Inc.*		76,102
	18,874	Parametric Technology Corp.*		350,868
	5,870	Park Electrochemical Corp.		177,333
	3,285	PC Connection, Inc.*		22,601
	8,942	PC Mall, Inc.*		46,409
	5,820	Perficient, Inc.*		72,575
	6,598	Pericom Semiconductor Corp.*		77,065
	45,507	Photronics, Inc.*		248,013
	7,738	Plantronics, Inc.		256,902
	9,683	Plexus Corp.*		358,755
	31,378	PMC - Sierra, Inc.*		277,695
	14,327	Polycom, Inc.*		466,344
	2,047	Power Integrations, Inc.		78,769
	19,010	Power-One, Inc.*		149,419
	83,099	Powerwave Technologies, Inc.*		147,085
	8,518	PRGX Global, Inc.*		57,582
	7,655	Progress Software Corp.*		246,874
	40,317	Qiao Xing Universal Telephone, Inc. (China)*		68,539
	19,996	QLogic Corp.*		387,323
	49,289	Quantum Corp.*		142,938
	13,929	Quest Software, Inc.*		244,175
	3,073	Rackspace Hosting, Inc.*		55,160
	6,097	Radiant Systems, Inc.*		85,785
	8,414	RadiSys Corp.*		82,373
	24,608	RealNetworks, Inc.*		102,123
	8,217	Red Hat, Inc.*		245,442
	2,195	Renaissance Learning, Inc.		31,191
	45,243	RF Micro Devices, Inc.*		254,266
	3,516	Riverbed Technology, Inc.*		108,961
	8,654	Rofin-Sinar Technologies, Inc.*		229,850
	3,838	Rogers Corp.*		128,458
	11,681	Rovi Corp.*		455,325
	12,099	S1 Corp.*		74,651
	2,559	Salesforce.com, Inc.*		219,050
	11,305	Sapient Corp.		115,650
	7,567	SAVVIS, Inc.*		133,179
	13,074	ScanSource, Inc.*		364,242
	8,033	Seachange International, Inc.*		66,915
	8,670	Semtech Corp.*		157,361
	7,275	Sigma Designs, Inc.*		86,282
	6,799	Silicon Graphics International Corp.*		67,242
	43,616	Silicon Image, Inc.*		162,252
	3,308	Silicon Laboratories, Inc.*		159,942
	4,959	SINA Corp. (China)*		181,995
	23,304	Skyworks Solutions, Inc.*		392,439

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	18,269	SMART Modular Technologies (WWH), Inc.*	$	128,248
	3,413	Sohu.com, Inc.*		164,336
	7,280	Solera Holdings, Inc.		282,974
	9,474	SonicWALL, Inc.*		95,972
	52,066	Sonus Networks, Inc.*		134,851
	14,222	SRA International, Inc., Class A*		328,244
	6,361	Standard Microsystems Corp.*		163,350
	10,464	StarTek, Inc.*		70,946
	5,319	STEC, Inc.*		73,881
	4,895	Super Micro Computer, Inc.*		69,411
	2,273	Supertex, Inc.*		61,394
	2,479	Switch & Data Facilities Co., Inc.*		47,572
	6,918	Sycamore Networks, Inc.		136,907
	11,918	Symmetricom, Inc.*		79,016
	12,511	Symyx Technologies, Inc.*		68,185
	4,060	Synaptics, Inc.*		124,317
	940	Synchronoss Technologies, Inc.*		19,204
	2,163	Syntel, Inc.		78,128
	29,295	Take-Two Interactive Software, Inc.*		318,437
	3,698	Taleo Corp., Class A*		96,074
	36,134	Technitrol, Inc.		195,124
	12,037	Tekelec*		218,231
	9,094	TeleCommunication Systems, Inc., Class A*		62,840
	12,510	TeleTech Holdings, Inc.*		207,041
	2,237	Telvent GIT SA (Spain)		64,649
	30,620	Teradyne, Inc.*		374,483
	3,003	Tessco Technologies, Inc.		76,396
	11,020	Tessera Technologies, Inc.*		223,486
	45,481	THQ, Inc.*		345,656
	30,405	TIBCO Software, Inc.*		346,617
	5,781	TNS, Inc.*		150,017
	21,019	Trident Microsystems, Inc.*		36,363
	24,224	TriQuint Semiconductor, Inc.*		182,649
	16,219	TTM Technologies, Inc.*		176,138
	2,781	Tyler Technologies, Inc.*		47,388
	6,298	Ultra Clean Holdings, Inc.*		62,161
	4,123	Ultratech, Inc.*		60,567
	34,096	United Online, Inc.		271,745
	148,410	UTStarcom, Inc.*		422,968
	19,391	ValueClick, Inc.*		199,339
	8,631	Varian Semiconductor Equipment Associates, Inc.*		284,305
	3,976	Veeco Instruments, Inc.*		174,904
	5,903	VeriFone Holdings, Inc.*		112,334
	15,857	Verigy Ltd. (Singapore)*		189,333
	5,952	ViaSat, Inc.*		210,998
	1,508	VistaPrint NV (Netherlands)*		77,783
	3,985	WebMD Health Corp.*		193,033
	3,910	Websense, Inc.*		89,031

See Notes to Financial Statements.

Schedule of Investments (Continued)

PowerShares FTSE RAFI US 1500 Small-Mid Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	37,165	Westell Technologies, Inc., Class A*	$	53,518
	12,801	Wright Express Corp.*		434,850
	8,927	X-Rite, Inc.*		29,459
	3,958	Xyratex Ltd. (Bermuda)*		69,661
	11,630	Zebra Technologies Corp., Class A*		337,851
	13,515	Zoran Corp.*		131,501
				45,168,882
		Materials—5.4%
	12,001	A. Schulman, Inc.		312,146
	12,878	A.M. Castle & Co.*		176,686
	3,046	AEP Industries, Inc.*		84,161
	6,315	AMCOL International Corp.		181,493
	7,548	American Vanguard Corp.		61,139
	9,899	Arch Chemicals, Inc.		336,665
	50,012	Boise, Inc.*		344,583
	9,293	Brush Engineered Materials, Inc.*		276,281
	15,292	Buckeye Technologies, Inc.*		215,923
	10,341	Bway Holding Co.*		204,545
	5,576	Calgon Carbon Corp.*		86,428
	12,998	Carpenter Technology Corp.		510,431
	2,322	Clearwater Paper Corp.*		147,865
	25,400	Coeur d'Alene Mines Corp.*		455,168
	3,481	Compass Minerals International, Inc.		262,154
	1,552	Deltic Timber Corp.		81,666
	13,226	Eagle Materials, Inc.		421,513
	46,154	Ferro Corp.*		504,002
	13,581	General Steel Holdings, Inc. (China)*		50,657
	24,134	Georgia Gulf Corp.*		495,712
	7,002	Globe Specialty Metals, Inc.*		87,525
	15,192	H.B. Fuller Co.		356,252
	5,013	Haynes International, Inc.		180,017
	58,191	Headwaters, Inc.*		349,146
	31,018	Hecla Mining Co.*		185,177
	13,769	Horsehead Holding Corp.*		163,576
	9,777	ICO, Inc.		83,789
	5,116	Innophos Holdings, Inc.		145,755
	12,773	Innospec, Inc.*		170,009
	5,479	Intrepid Potash, Inc.*		143,879
	4,831	Kaiser Aluminum Corp.		194,158
	5,744	KapStone Paper and Packaging Corp.*		74,098
	6,824	Koppers Holdings, Inc.		192,232
	3,365	Kraton Performance Polymers, Inc.*		63,800
	9,670	Landec Corp.*		59,277
	6,004	LSB Industries, Inc.*		106,631
	51,612	Mercer International, Inc.*		284,382
	5,506	Minerals Technologies, Inc.		317,696
	14,249	Myers Industries, Inc.		154,744
	9,089	Neenah Paper, Inc.		159,058
	3,227	NewMarket Corp.		354,970
	1,968	NL Industries, Inc.		16,708

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	6,526	Olympic Steel, Inc.	$	207,396
	12,837	OM Group, Inc.*		484,597
	18,905	Omnova Solutions, Inc.*		144,623
	16,609	P.H. Glatfelter Co.		243,986
	4,896	Penford Corp.*		45,288
	52,266	PolyOne Corp.*		591,128
	5,200	Quaker Chemical Corp.		163,644
	3,366	Royal Gold, Inc.		172,272
	10,054	RTI International Metals, Inc.*		271,961
	9,180	Schnitzer Steel Industries, Inc., Class A		495,720
	4,414	Schweitzer-Mauduit International, Inc.		251,245
	15,710	Sensient Technologies Corp.		495,336
	6,336	Shengda Tech, Inc.*		43,655
	24,194	Solutia, Inc.*		425,814
	22,329	Spartech Corp.*		317,965
	2,026	Stepan Co.		153,470
	9,051	Stillwater Mining Co.*		152,962
	1,243	STR Holdings, Inc.*		28,664
	6,518	Sutor Technology Group Ltd.*		17,925
	6,495	Terra Nova Royalty Corp. (Canada)*		87,877
	7,950	Texas Industries, Inc.		300,828
	17,188	Titanium Metals Corp.*		265,039
	134,572	U.S. Concrete, Inc.*		71,323
	19,886	U.S. Gold Corp.*		67,811
	394	U.S. Lime & Minerals, Inc.*		16,056
	3,510	Universal Stainless & Alloy Products, Inc.*		81,888
	2,995	Valhi, Inc.		85,717
	11,909	Verso Paper Corp.*		62,403
	3,153	Walter Energy, Inc.		254,794
	27,121	Wausau Paper Corp.*		240,021
	2,669	Zep, Inc.		49,216
	9,937	Zoltek Cos., Inc.*		97,780
				15,440,501
		Telecommunication Services—1.4%
	1,879	AboveNet, Inc.*		94,965
	28,949	Alaska Communications Systems Group, Inc.		247,803
	1,832	Atlantic Tele-Network, Inc.		101,090
	4,534	Cbeyond, Inc.*		69,733
	132,452	Cincinnati Bell, Inc.*		446,363
	10,397	Clearwire Corp., Class A*		80,265
	4,001	Cogent Communications Group, Inc.*		40,850
	9,030	Consolidated Communications Holdings, Inc.		167,506
	35,399	General Communication, Inc., Class A*		217,704
	11,145	Global Crossing Ltd.*		165,503
	23,047	Globalstar, Inc.*		42,406
	24,648	IDT Corp., Class B*		244,262
	11,238	Iowa Telecommunications Services, Inc.		189,248
	5,760	Iridium Communications, Inc.*		46,426

See Notes to Financial Statements.

Schedule of Investments (Continued)

PowerShares FTSE RAFI US 1500 Small-Mid Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	3,698	Neutral Tandem, Inc.*	$	62,681
	7,705	NTELOS Holdings Corp.		151,249
	37,436	PAETEC Holding Corp.*		186,431
	23,680	Premiere Global Services, Inc.*		221,882
	6,824	SBA Communications Corp., Class A*		241,365
	4,693	Shenandoah Telecommunications Co.		83,348
	14,933	SureWest Communications*		128,424
	13,094	Syniverse Holdings, Inc.*		262,927
	23,573	USA Mobility, Inc.		328,608
				3,821,039
		Utilities—1.7%
	13,412	ALLETE, Inc.		489,136
	5,709	American States Water Co.		213,060
	5,740	California Water Service Group		222,310
	4,719	Cascal NV (Netherlands)		31,806
	5,585	Central Vermont Public Service Corp.		121,809
	8,207	CH Energy Group, Inc.		339,934
	2,669	Chesapeake Utilities Corp.		80,390
	2,486	Connecticut Water Service, Inc.		58,893
	17,856	El Paso Electric Co.*		379,440
	16,360	Empire District Electric Co. (The)		319,183
	6,355	ITC Holdings Corp.		354,800
	12,251	Laclede Group, Inc. (The)		417,514
	7,793	MGE Energy, Inc.		286,471
	4,502	Middlesex Water Co.		81,306
	8,723	Northwest Natural Gas Co.		413,383
	3,172	Ormat Technologies, Inc.		101,060
	4,527	SJW Corp.		124,402
	7,877	South Jersey Industries, Inc.		355,331
	9,223	Southwest Water Co.		98,409
	12,988	UIL Holdings Corp.		377,042
	3,971	Unitil Corp.		87,680
				4,953,359
		Total Common Stocks and Other Equity Interests (Cost $253,251,032)		284,104,424
		Money Market Fund—0.0%
	48,096	Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $48,096)		48,096
		Total Investments (Cost $253,299,128)—100.0%		284,152,520
		Liabilities in excess of other assets—0.0%		(17,359	)
		Net Assets—100.0%	$	284,135,161

Investment Abbreviations:

REIT—Real Estate Investment Trust

Notes to Schedule of Investments:

* Non-income producing security.

See Notes to Financial Statements.

Schedule of Investments

PowerShares NXQ Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.1%
		Consumer Discretionary—19.9%
	1,810	Ctrip.com International Ltd. ADR (China)*	$	66,101
	1,750	Discovery Communications, Inc., Class A*		67,725
	1,140	Dollar Tree, Inc.*		69,221
	980	DreamWorks Animation SKG, Inc., Class A*		38,896
	1,795	Gentex Corp.		38,575
	1,745	Liberty Global, Inc., Class A*		47,831
	1,840	LKQ Corp.*		38,750
	691	Netflix, Inc.*		68,250
	1,600	PetSmart, Inc.		52,912
	50,240	Sirius XM Radio, Inc.*		59,283
				547,544
		Consumer Staples—6.4%
	565	Green Mountain Coffee Roasters, Inc.*		41,053
	1,140	Hansen Natural Corp.*		50,251
	2,200	Whole Foods Market, Inc.*		85,844
				177,148
		Energy—1.9%
	1,880	Linn Energy LLC		50,948
		Health Care—20.0%
	1,150	Alexion Pharmaceuticals, Inc.*		63,112
	1,845	Amylin Pharmaceuticals, Inc.*		38,081
	1,735	Dendreon Corp.*		94,072
	2,365	Human Genome Sciences, Inc.*		65,487
	750	IDEXX Laboratories, Inc.*		49,605
	850	Lincare Holdings, Inc.*		39,687
	1,180	Perrigo Co.		72,015
	1,530	Pharmaceutical Product Development, Inc.		42,075
	706	Shire PLC ADR		46,483
	705	United Therapeutics Corp.*		40,107
				550,724
		Industrials—7.5%
	1,044	Bucyrus International, Inc.		65,782
	1,086	Copart, Inc.*		38,759
	2,655	R.R. Donnelley & Sons Co.		57,056
	1,530	Ryanair Holdings PLC ADR (Ireland)*		43,085
				204,682
		Information Technology—36.0%
	2,210	Akamai Technologies, Inc.*		85,814
	1,160	ANSYS, Inc.*		52,200
	1,510	ASML Holding NV (Netherlands)		49,317
	5,735	Brocade Communications Systems, Inc.*		37,220
	1,370	Cree, Inc.*		100,298
	510	Equinix, Inc.*		51,331
	1,030	F5 Networks, Inc.*		70,483
	520	Itron, Inc.*		41,397
	10,990	Micron Technology, Inc.*		102,756
	950	NetEase.com, Inc. ADR (China)*		33,126

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	3,670	Nuance Communications, Inc.*	$	67,051
	5,530	ON Semiconductor Corp.*		43,908
	1,495	Rambus, Inc.*		36,074
	1,350	Rovi Corp.*		52,623
	1,891	Synopsys, Inc.*		42,945
	4,970	Tellabs, Inc.		45,128
	1,560	Trimble Navigation Ltd.*		51,028
	560	VistaPrint NV (Netherlands)*		28,885
				991,584
		Materials—4.1%
	815	Randgold Resources Ltd. ADR (Channel Islands)*		68,656
	2,795	Steel Dynamics, Inc.		43,909
				112,565
		Telecommunication Services—4.3%
	1,510	SBA Communications Corp., Class A*		53,409
	5,900	Windstream Corp.		65,195
				118,604
		Total Investments (Cost $2,080,923)—100.1%		2,753,799
		Liabilities in excess of other assets—(0.1%)		(1,686	)
		Net Assets—100.0%	$	2,752,113

Investment Abbreviations:

ADR—American Depositary Receipt

Notes to Schedule of Investments:

* Non-income producing security.

See Notes to Financial Statements.

Statements of Assets and Liabilities

April 30, 2010

	PowerShares Dynamic MagniQuant Portfolio			PowerShares Dynamic Market Portfolio			PowerShares Dynamic OTC Portfolio
ASSETS:
Unaffiliated investments, at value	$	27,113,514		$	230,182,569		$	40,691,437
Affiliated investments, at value (Note 4)		—			—			—
Receivables:
Dividends		11,467			203,463			4,821
Expense waivers		9,160			—			7,632
Investments sold		—			2,034,317			—
Shares sold		—			—			—
Other assets		3,000			3,000			3,000
Total Assets		27,137,141			232,423,349			40,706,890
LIABILITIES:
Due to custodian		6,063			6,804			6,063
Payables:
Shares repurchased		—			2,036,521			—
Investments purchased		—			—			—
Expense recapture		—			15,830			—
Accrued advisory fees		11,105			97,258			17,538
Accrued expenses		46,852			116,275			48,521
Total Liabilities		64,020			2,272,688			72,122
NET ASSETS	$	27,073,121		$	230,150,661		$	40,634,768
NET ASSETS CONSIST OF:
Shares of beneficial interest	$	47,238,385		$	546,955,220		$	111,481,728
Undistributed net investment income (loss)		8,384			221,358			(2,794	)
Accumulated net realized loss on investments and foreign currency related transactions		(23,764,882	)		(334,236,431	)		(76,681,350	)
Net unrealized appreciation (depreciation) on investments		3,591,234			17,210,514			5,837,184
Net Assets	$	27,073,121		$	230,150,661		$	40,634,768
Shares outstanding (unlimited amount authorized, $0.01 par value)		1,200,000			5,700,000			900,000
Net asset value	$	22.56		$	40.38		$	45.15
Share price	$	22.56		$	40.83		$	45.15
Unaffiliated investments, at cost	$	23,522,280		$	212,972,055		$	34,854,253
Affiliated investments, at cost	$	—		$	—		$	—

See Notes to Financial Statements.

	PowerShares FTSE RAFI US 1000 Portfolio			PowerShares FTSE RAFI US 1500 Small-Mid Portfolio			PowerShares NXQ Portfolio
ASSETS:
Unaffiliated investments, at value	$	648,099,390		$	284,152,520		$	2,753,799
Affiliated investments, at value (Note 4)		279,926			—			—
Receivables:
Dividends		729,563			144,388			851
Expense waivers		7,300			—			—
Investments sold		—			153,996			—
Shares sold		2,646,588			—			—
Other assets		3,001			—			—
Total Assets		651,765,768			284,450,904			2,754,650
LIABILITIES:
Due to custodian		65,086			17,168			968
Payables:
Shares repurchased		—			—			—
Investments purchased		2,820,543			80,658			—
Expense recapture		—			2,603			—
Accrued advisory fees		152,161			66,325			1,569
Accrued expenses		299,989			148,989			—
Total Liabilities		3,337,779			315,743			2,537
NET ASSETS	$	648,427,989		$	284,135,161		$	2,752,113
NET ASSETS CONSIST OF:
Shares of beneficial interest	$	816,240,400		$	279,244,148		$	3,025,668
Undistributed net investment income (loss)		1,058,714			200,492			—
Accumulated net realized loss on investments and foreign currency related transactions		(166,490,782	)		(26,162,871	)		(946,431	)
Net unrealized appreciation (depreciation) on investments		(2,380,343	)		30,853,392			672,876
Net Assets	$	648,427,989		$	284,135,161		$	2,752,113
Shares outstanding (unlimited amount authorized, $0.01 par value)		12,250,000			4,750,000			100,000
Net asset value	$	52.93		$	59.82		$	27.52
Share price	$	53.46		$	59.79		$	27.51
Unaffiliated investments, at cost	$	650,604,065		$	253,299,128		$	2,080,923
Affiliated investments, at cost	$	155,594		$	—		$	—

Statements of Operations

Year Ended April 30, 2010

	PowerShares Dynamic MagniQuant Portfolio			PowerShares Dynamic Market Portfolio			PowerShares Dynamic OTC Portfolio
INVESTMENT INCOME:
Unaffiliated dividend income	$	330,051		$	4,011,745		$	250,665
Affiliated dividend income		—			—			—
Foreign withholding tax		(24	)		(342	)		—
Total Income		330,027			4,011,403			250,665
EXPENSES:
Advisory fees		149,475			1,315,446			204,404
Accounting & administration fees		64,668			66,587			64,668
Professional fees		31,151			41,640			31,620
Custodian & transfer agent fees		19,165			25,309			11,787
Sub-licensing		14,947			78,926			12,264
Trustees		5,103			13,319			5,466
Other expenses		9,090			50,312			16,959
Total Expenses		293,599			1,591,539			347,168
(Waivers)		(99,281	)		(12,917	)		(101,882	)
Net Expenses		194,318			1,578,622			245,286
Net Investment Income (Loss)		135,709			2,432,781			5,379
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) from:
Investments		(656,365	)		(9,667,735	)		(2,398,360	)
In-kind redemptions		8,131,127			75,315,231			11,899,642
Foreign currency related transactions		—			—			—
Net increase from payment by affiliate (see Note 3)		—			—			—
Net realized gain (loss)		7,474,762			65,647,496			9,501,282
Net change in unrealized appreciation on: Investments		938,651			1,137,502			3,802,752
Net realized and unrealized gain on investments		8,413,413			66,784,998			13,304,034
Net increase in net assets resulting from operations	$	8,549,122		$	69,217,779		$	13,309,413

See Notes to Financial Statements.

	PowerShares FTSE RAFI US 1000 Portfolio			PowerShares FTSE RAFI US 1500 Small-Mid Portfolio			PowerShares NXQ Portfolio
INVESTMENT INCOME:
Unaffiliated dividend income	$	8,980,830		$	1,777,175		$	10,188
Affiliated dividend income		118,692			—			—
Foreign withholding tax		(2,836	)		(586	)		(220	)
Total Income		9,096,686			1,776,589			9,968
EXPENSES:
Advisory fees		1,492,728			485,570			15,458
Accounting & administration fees		125,747			64,668			—
Professional fees		50,863			35,894			—
Custodian & transfer agent fees		74,662			33,930			—
Sub-licensing		463,260			150,696			—
Trustees		20,654			9,138			—
Other expenses		78,879			68,669			—
Total Expenses		2,306,793			848,565			15,458
(Waivers)		(299,332	)		(195,556	)		—
Net Expenses		2,007,461			653,009			15,458
Net Investment Income (Loss)		7,089,225			1,123,580			(5,490	)
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) from:
Investments		(115,032,373	)		(15,914,345	)		(33,242	)
In-kind redemptions		81,005,653			39,300,956			229,262
Foreign currency related transactions		—			2,872			—
Net increase from payment by affiliate (see Note 3)		—			818,480			—
Net realized gain (loss)		(34,026,720	)		24,207,963			196,020
Net change in unrealized appreciation on: Investments		239,935,703			60,075,407			806,720
Net realized and unrealized gain on investments		205,908,983			84,283,370			1,002,740
Net increase in net assets resulting from operations	$	212,998,208		$	85,406,950		$	997,250

Statements of Changes in Net Assets

	PowerShares Dynamic MagniQuant Portfolio						PowerShares Dynamic Market Portfolio						PowerShares Dynamic OTC Portfolio
	Year Ended April 30, 2010			Year Ended April 30, 2009			Year Ended April 30, 2010			Year Ended April 30, 2009			Year Ended April 30, 2010			Year Ended April 30, 2009
OPERATIONS:
Net investment income (loss)	$	135,709		$	301,723		$	2,432,781		$	5,290,794		$	5,379		$	52,820
Net realized gain (loss) on investments and foreign currency related transactions		7,474,762			(21,597,836	)		65,647,496			(217,180,493	)		9,501,282			(29,545,505	)
Net increase from payment by affiliate (see Note 3)		—			—			—			—			—			—
Net change in unrealized appreciation (depreciation) on investments		938,651			3,017,483			1,137,502			15,906,229			3,802,752			2,948,627
Net increase (decrease) in net assets resulting from operations		8,549,122			(18,278,630	)		69,217,779			(195,983,470	)		13,309,413			(26,544,058	)
Undistributed net investment income (loss) included in the price of units issued and redeemed		(5,701	)		(14,018	)		2,383			(90,167	)		(11,386	)		(30,940	)
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income		(149,699	)		(279,388	)		(2,569,156	)		(5,193,546	)		(61,560	)		—
Return of capital		—			—			—			—			—			—
Total distributions to shareholders		(149,699	)		(279,388	)		(2,569,156	)		(5,193,546	)		(61,560	)		—
SHAREHOLDER TRANSACTIONS:
Proceeds from shares sold		34,234,568			58,065,641			440,326,158			419,971,271			45,391,077			117,636,471
Value of shares repurchased		(44,212,083	)		(73,556,808	)		(537,603,548	)		(578,717,396	)		(57,397,632	)		(147,885,491	)
Net income equalization		5,701			14,018			(2,383	)		90,167			11,386			30,940
Net increase (decrease) in net assets resulting from shares transactions		(9,971,814	)		(15,477,149	)		(97,279,773	)		(158,655,958	)		(11,995,169	)		(30,218,080	)
Increase (Decrease) in Net Assets		(1,578,092	)		(34,049,185	)		(30,628,767	)		(359,923,141	)		1,241,298			(56,793,078	)
NET ASSETS:
Beginning of year		28,651,213			62,700,398			260,779,428			620,702,569			39,393,470			96,186,548
End of year	$	27,073,121		$	28,651,213		$	230,150,661		$	260,779,428		$	40,634,768		$	39,393,470
Undistributed net investment income (loss) at end of year	$	8,384		$	22,335		$	221,358		$	357,733		$	(2,794	)	$	52,820
CHANGES IN SHARES OUTSTANDING:
Shares sold		1,800,000			2,700,000			12,350,000			11,050,000			1,200,000			2,800,000
Shares repurchased		(2,300,000	)		(3,500,000	)		(14,950,000	)		(15,650,000	)		(1,500,000	)		(3,650,000	)
Shares outstanding, beginning of year		1,700,000			2,500,000			8,300,000			12,900,000			1,200,000			2,050,000
Shares outstanding, end of year		1,200,000			1,700,000			5,700,000			8,300,000			900,000			1,200,000

See Notes to Financial Statements.

	PowerShares FTSE RAFI US 1000 Portfolio						PowerShares FTSE RAFI US 1500 Small-Mid Portfolio						PowerShares NXQ Portfolio
	Year Ended April 30, 2010			Year Ended April 30, 2009			Year Ended April 30, 2010			Year Ended April 30, 2009			Year Ended April 30, 2010			Year Ended April 30, 2009
OPERATIONS:
Net investment income (loss)	$	7,089,225		$	12,820,222		$	1,123,580		$	1,261,499		$	(5,490	)	$	(6,809	)
Net realized gain (loss) on investments and foreign currency related transactions		(34,026,720	)		(132,347,764	)		23,389,483			(24,506,125	)		196,020			(682,990	)
Net increase from payment by affiliate (see Note 3)		—			—			818,480			—			—			—
Net change in unrealized appreciation (depreciation) on investments		239,935,703			(160,948,517	)		60,075,407			(16,174,382	)		806,720			(262,500	)
Net increase (decrease) in net assets resulting from operations		212,998,208			(280,476,059	)		85,406,950			(39,419,008	)		997,250			(952,299	)
Undistributed net investment income (loss) included in the price of units issued and redeemed		107,266			(915,463	)		266,740			11,433			—			16
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income		(7,652,691	)		(15,035,089	)		(1,105,854	)		(1,209,035	)		—			(2,563	)
Return of capital		—			—			—			—			—			(2,563	)
Total distributions to shareholders		(7,652,691	)		(15,035,089	)		(1,105,854	)		(1,209,035	)		—			(5,126	)
SHAREHOLDER TRANSACTIONS:
Proceeds from shares sold		230,021,021			115,318,454			211,958,906			49,466,935			3,558,619			16,268,388
Value of shares repurchased		(183,381,082	)		(300,328,510	)		(106,523,770	)		(45,383,840	)		(3,558,619	)		(16,314,218	)
Net income equalization		(107,266	)		915,463			(266,740	)		(11,433	)		—			(16	)
Net increase (decrease) in net assets resulting from shares transactions		46,532,673			(184,094,593	)		105,168,396			4,071,662			—			(45,846	)
Increase (Decrease) in Net Assets		251,985,456			(480,521,204	)		189,736,232			(36,544,948	)		997,250			(1,003,255	)
NET ASSETS:
Beginning of year		396,442,533			876,963,737			94,398,929			130,943,877			1,754,863			2,758,118
End of year	$	648,427,989		$	396,442,533		$	284,135,161		$	94,398,929		$	2,752,113		$	1,754,863
Undistributed net investment income (loss) at end of year	$	1,058,714		$	1,625,836		$	200,492		$	203,397		$	—		$	—
CHANGES IN SHARES OUTSTANDING:
Shares sold		4,700,000			3,500,000			4,050,000			1,700,000			150,000			600,000
Shares repurchased		(3,850,000	)		(8,000,000	)		(2,000,000	)		(1,600,000	)		(150,000	)		(600,000	)
Shares outstanding, beginning of year		11,400,000			15,900,000			2,700,000			2,600,000			100,000			100,000
Shares outstanding, end of year		12,250,000			11,400,000			4,750,000			2,700,000			100,000			100,000

Financial Highlights

PowerShares Dynamic MagniQuant Portfolio

	Year Ended April 30,									For the Period October 12, 2006* Through
	2010			2009			2008			April 30, 2007
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	16.85		$	25.08		$	28.02		$	25.37
Net investment income**		0.09			0.14			0.14			0.15
Net realized and unrealized gain (loss) on investments		5.71			(8.24	)		(2.87	)		2.55
Total from investment operations		5.80			(8.10	)		(2.73	)		2.70
Distributions to shareholders from:
Net investment income		(0.09	)		(0.13	)		(0.20	)		(0.05	)
Return of capital		—			—			(0.01	)		—
Total distributions		(0.09	)		(0.13	)		(0.21	)		(0.05	)
Net asset value at end of period	$	22.56		$	16.85		$	25.08		$	28.02
Share price at end of period***	$	22.56		$	16.84
NET ASSET VALUE TOTAL RETURN****		34.54	%		(32.40	)%		(9.81	)%		10.67	%
SHARE PRICE TOTAL RETURN****		34.62	%		(32.41	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	27,073		$	28,651		$	62,700		$	81,269
Ratio to average net assets of:
Expenses, after (Waivers) and/or Recapture		0.65	%		0.65	%		0.67	%		0.67	%†
Expenses, prior to (Waivers) and/or Recapture		0.98	%		0.87	%		0.72	%		0.84	%†
Net investment income, after (Waivers) and/or Recapture		0.45	%		0.70	%		0.53	%		1.04	%†
Portfolio turnover rate ††		98	%		102	%		76	%		23	%
Undistributed net investment income (loss) included in price of units issued and redeemed**#	$	(0.00	)^(a)	$	(0.01	)	$	0.00	^(a)	$	0.02

PowerShares Dynamic Market Portfolio

	Year Ended April 30,
	2010			2009			2008			2007			2006
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of year	$	31.42		$	48.12		$	53.32		$	47.87		$	39.11
Net investment income**		0.33			0.50			0.37			0.42			0.34
Net realized and unrealized gain (loss) on investments		8.97			(16.72	)		(5.09	)		5.35			8.75
Total from investment operations		9.30			(16.22	)		(4.72	)		5.77			9.09
Distributions to shareholders from:
Net investment income		(0.34	)		(0.48	)		(0.48	)		(0.32	)		(0.33	)
Net asset value at end of year	$	40.38		$	31.42		$	48.12		$	53.32		$	47.87
Share price at end of year***	$	40.83		$	31.41
NET ASSET VALUE TOTAL RETURN****		29.75	%		(33.86	)%		(8.93	)%		12.12	%		23.30	%
SHARE PRICE TOTAL RETURN****		29.80	%		(33.84	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of year (000's omitted)	$	230,151		$	260,779		$	620,703		$	973,105		$	919,156
Ratio to average net assets of:
Expenses, after (Waivers) and/or Recapture		0.60	%		0.60	%		0.58	%		0.60	%		0.60	%
Expenses, prior to (Waivers) and/or Recapture		0.60	%		0.60	%		0.59	%		0.62	%		0.63	%
Net investment income, after (Waivers) and/or Recapture		0.92	%		1.28	%		0.72	%		0.87	%		0.76	%
Portfolio turnover rate ††		98	%		113	%		121	%		114	%		103	%
Undistributed net investment income (loss) included in price of units issued and redeemed**#	$	0.00	^(a)	$	(0.01	)	$	(0.01	)	$	0.00	^(a)		—

* Commencement of Investment Operations.

** Based on average shares outstanding.

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

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

† Annualized.

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

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

(a) Amount represents less than $0.005.

See Notes to Financial Statements.

Financial Highlights (Continued)

PowerShares Dynamic OTC Portfolio

	Year Ended April 30,
	2010			2009			2008			2007			2006
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of year	$	32.83		$	46.92		$	55.03		$	53.60		$	42.38
Net investment income (loss)**		0.01			0.03			(0.11	)		(0.07	)		(0.02	)
Net realized and unrealized gain (loss) on investments		12.36			(14.12	)		(7.94	)		1.50			11.30
Total from investment operations		12.37			(14.09	)		(8.05	)		1.43			11.28
Distributions to shareholders from:
Net investment income		(0.05	)		—			—			—			(0.02	)
Return of capital		—			—			(0.06	)		—			(0.04	)
Total distributions		(0.05	)		—			(0.06	)		—			(0.06	)
Net asset value at end of year	$	45.15		$	32.83		$	46.92		$	55.03		$	53.60
Share price at end of year***	$	45.15		$	32.83
NET ASSET VALUE TOTAL RETURN****		37.73	%		(30.03	)%		(14.65	)%		2.67	%		26.63	%
SHARE PRICE TOTAL RETURN****		37.73	%		(30.06	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of year (000's omitted)	$	40,635		$	39,393		$	96,187		$	159,599		$	222,440
Ratio to average net assets of:
Expenses, after (Waivers) and/or Recapture		0.60	%		0.59	%		0.59	%		0.60	%		0.60	%
Expenses, prior to (Waivers) and/or Recapture		0.85	%		0.74	%		0.64	%		0.69	%		0.69	%
Net investment income (loss), after (Waivers) and/or Recapture		0.01	%		0.08	%		(0.21	)%		(0.15	)%		(0.04	)%
Portfolio turnover rate ††		90	%		77	%		60	%		107	%		77	%
Undistributed net investment income (loss) included in price of units issued and redeemed**#	$	(0.01	)	$	(0.02	)	$	(0.01	)	$	0.03			—

PowerShares FTSE RAFI US 1000 Portfolio

	Year Ended April 30,												For the Period December 19, 2005* Through
	2010			2009			2008			2007			April 30, 2006
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	34.78		$	55.15		$	60.99		$	52.44		$	49.64
Net investment income**		0.62			0.97			0.89			0.78			0.24
Net realized and unrealized gain (loss) on investments		18.21			(20.26	)		(5.96	)		8.38			2.68
Total from investment operations		18.83			(19.29	)		(5.07	)		9.16			2.92
Distributions to shareholders from:
Net investment income		(0.68	)		(1.08	)		(0.77	)		(0.61	)		(0.12	)
Net asset value at end of period	$	52.93		$	34.78		$	55.15		$	60.99		$	52.44
Share price at end of period***	$	53.46		$	34.78
NET ASSET VALUE TOTAL RETURN****		54.57	%		(35.26	)%		(8.42	)%		17.60	%		5.89	%
SHARE PRICE TOTAL RETURN****		54.66	%		(35.20	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	648,428		$	396,443		$	876,964		$	1,055,189		$	104,883
Ratio to average net assets of:
Expenses, after (Waivers) and/or Recapture		0.39	%		0.58	%		0.67	%		0.70	%		0.76	%†
Expenses, prior to (Waivers) and/or Recapture		0.45	%		0.60	%		0.66	%		0.71	%		1.00	%†
Net investment income, after (Waivers) and/or Recapture		1.38	%		2.34	%		1.50	%		1.40	%		1.38	%†
Portfolio turnover rate ††		24	%		15	%		12	%		8	%		2	%
Undistributed net investment income (loss) included in price of units issued and redeemed**#	$	0.01		$	(0.07	)	$	(0.04	)	$	0.33			—

* Commencement of Investment Operations.

** Based on average shares outstanding.

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

† Annualized.

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

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

See Notes to Financial Statements.

Financial Highlights (Continued)

PowerShares FTSE RAFI US 1500 Small-Mid Portfolio

	Year Ended April 30,									For the Period September 20, 2006* Through
	2010			2009			2008			April 30, 2007
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	34.96		$	50.36		$	57.12		$	50.52
Net investment income**		0.32			0.46			0.50			0.27
Net realized and unrealized gain (loss) on investments		24.88			(15.42	)		(6.81	)		6.50
Total from investment operations		25.20			(14.96	)		(6.31	)		6.77
Distributions to shareholders from:
Net investment income		(0.34	)		(0.44	)		(0.45	)		(0.17	)
Net asset value at end of period	$	59.82		$	34.96		$	50.36		$	57.12
Share price at end of period***	$	59.79		$	34.90
NET ASSET VALUE TOTAL RETURN****		72.38	%^(a)		(29.79	)%		(11.10	)%		13.42	%
SHARE PRICE TOTAL RETURN****		72.59	%		(29.84	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	284,135		$	94,399		$	130,944		$	85,680
Ratio to average net assets of:
Expenses, after (Waivers) and/or Recapture		0.39	%		0.58	%		0.71	%		0.73	%†
Expenses, prior to (Waivers) and/or Recapture		0.51	%		0.79	%		0.76	%		0.92	%†
Net investment income, after (Waivers) and/or Recapture		0.67	%		1.22	%		0.92	%		0.83	%†
Portfolio turnover rate ††		16	%		15	%		42	%		9	%
Undistributed net investment income included in price of units issued and redeemed**#	$	0.08		$	0.00	^(b)	$	0.09		$	0.05

PowerShares NXQ Portfolio

	Year Ended April 30,						For the Period April 1, 2008* Through
	2010			2009			April 30, 2008
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	17.55		$	27.58		$	25.77
Net investment income (loss)**		(0.05	)		(0.07	)		0.03
Net realized and unrealized gain (loss) on investments		10.02			(9.91	)		1.78
Total from investment operations		9.97			(9.98	)		1.81
Distributions to shareholders from:
Net investment income		—			(0.03	)		—
Return of capital		—			(0.02	)		—
Total distributions		—			(0.05	)		—
Net asset value at end of period	$	27.52		$	17.55		$	27.58
Share price at end of period***	$	27.51		$	17.52
NET ASSET VALUE TOTAL RETURN****		56.81	%		(36.21	)%		7.02	%^(c)
SHARE PRICE TOTAL RETURN****		57.02	%		(36.32	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	2,752		$	1,755		$	2,758
Ratio to average net assets of:
Expenses		0.70	%		0.70	%		0.70	%†
Net investment income (loss)		(0.25	)%		(0.30	)%		0.93	%†
Portfolio turnover rate ††		62	%		118	%		15	%
Undistributed net investment income (loss) included in price of units issued and redeemed**#		—		$	0.00	^(b)	$	(0.01	)

* Commencement of Investment Operations.

** Based on average shares outstanding.

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

† Annualized.

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

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

(a) Amount includes the effect of the Adviser pay-in for an economic loss of $0.17 per share. Had the pay-in not been made, the Net Asset Value Total Return would have been 71.89%.

(b) Amount represents less than $0.005.

See Notes to Financial Statements.

Notes to Financial Statements

PowerShares Exchange-Traded Fund Trust

April 30, 2010

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, 2010, the Trust offered sixty-two portfolios. This report includes the following portfolios:

Full Name				Short Name
PowerShares Dynamic MagniQuant Portfolio				"Dynamic MagniQuant Portfolio"

PowerShares Dynamic Market Portfolio				"Dynamic Market Portfolio"

PowerShares Dynamic OTC Portfolio				"Dynamic OTC Portfolio"

PowerShares FTSE RAFI US 1000 Portfolio				"FTSE RAFI US 1000 Portfolio"

PowerShares FTSE RAFI US 1500 Small-Mid Portfolio				"FTSE RAFI US 1500 Small-Mid Portfolio"

PowerShares NXQ Portfolio				"NXQ Portfolio"

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

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

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

Fund				Index
Dynamic MagniQuant Portfolio				Top 200 Dynamic Intellidex^SM Index

Dynamic Market Portfolio				Dynamic Market Intellidex^SM Index

Dynamic OTC Portfolio				Dynamic OTC Intellidex^SM Index

FTSE RAFI US 1000 Portfolio				FTSE RAFI U.S. 1000 Index

FTSE RAFI US 1500 Small-Mid Portfolio				FTSE RAFI U.S. 1500 Small-Mid Index

NXQ Portfolio				NASDAQ Q-50 Index^SM

Note 2. Significant Accounting Policies

The preparation of the financial statements in accordance with Generally Accepted Accounting Principles ("GAAP") in the United States of America requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements, including estimates and assumptions related to taxation. Actual results could differ from these estimates. In addition, the Funds monitor for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

April 30, 2010

A. Security Valuation

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

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

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

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

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

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

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

April 30, 2010

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

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

B. Other Risks

Replication Management Risk. The Funds are not "actively" managed and do not seek returns in excess of their respective Underlying Indices. Therefore, they would not necessarily sell a stock because the stock's issuer was in financial trouble unless that stock is removed from its Underlying Index.

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

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

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

C. Federal Income Taxes

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

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

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

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

April 30, 2010

D. Investment Income and Investment Transactions

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

E. Expenses

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

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

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

F. Dividends and Distributions to Shareholders

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

G. Equalization

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

Note 3. Investment Advisory Agreement and Other Agreements

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

April 30, 2010

bookkeeping and other administrative services. Each Fund (except for the FTSE RAFI US 1000 Portfolio, the FTSE RAFI US 1500 Small-Mid Portfolio and the NXQ Portfolio) has agreed to pay the Adviser an annual fee of 0.50% of the Fund's average daily net assets. Each of the FTSE RAFI US 1000 Portfolio and the 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 NXQ Portfolio has agreed to pay the Adviser an annual unitary management fee of 0.70% of the Fund's average daily net assets and the Adviser has agreed to pay for substantially all expenses of the NXQ Portfolio, including the cost of transfer agency, custody, fund administration, legal, audit and other services, except for advisory fees, distribution fees, if any, brokerage expenses, taxes, interest, litigation expenses and other extraordinary expenses.

The Adviser has entered into an Amended and Restated Excess Expense Agreement (the "Excess Expense Agreement") with the Trust. For the Dynamic MagniQuant Portfolio, the Adviser has agreed to waive fees and/or pay Fund expenses to the extent necessary to prevent the operating expenses of the Fund (excluding interest expense, brokerage commissions and other trading expenses, sub-licensing fees, offering costs, taxes and extraordinary expenses) from exceeding 0.60% of the Fund's average daily net assets per year (the "Expense Cap"), at least until August 31, 2011. The FTSE RAFI US 1000 Portfolio's and the FTSE RAFI US 1500 Small-Mid Portfolio's Expense Cap is 0.39% of the Fund's average daily net assets per year, at least until August 31, 2011, and sub-licensing fees are included in the expenses subject to the Expense Cap. Offering costs excluded from the Expense Cap are: (a) initial legal fees pertaining to the Funds' Shares offered for sale; (b) initial Securities and Exchange Commission and state registration fees; and (c) initial fees paid to be listed on an exchange. For the Dynamic Market Portfolio and the Dynamic OTC Portfolio, the Adviser has agreed to waive fees and/or pay Fund expenses to the extent necessary to prevent the operating expenses of each Fund (excluding interest expense, brokerage commissions and other trading expenses, taxes and extraordinary expenses) from exceeding 0.60% of the Fund's average daily net assets per year at least until August 31, 2011.

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

The net amount of fees waived and other expenses assumed by the Adviser and the amount of recapture paid to the Adviser pursuant to the Excess Expense Agreement are collectively referred to as "(Waivers) and/or Recapture." The net amounts of (Waivers) and/or Recapture for the fiscal year ended April 30, 2010 are shown on the Statements of Operations.

For the year ended April 30, 2010, the Adviser has reimbursed the FTSE RAFI US 1500 Small-Mid Portfolio for an economic loss of $818,480.

The amounts available for potential future recapture by the Adviser under the Excess Expense Agreement and the expiration schedule at April 30, 2010 are as follows:

	Total Potential		Potential Recapture Amounts Expiring
	Recapture Amounts		04/30/11		04/30/12		04/30/13
Dynamic MagniQuant Portfolio	$	248,735	$	52,795	$	96,659	$	99,281
FTSE RAFI US 1000 Portfolio		398,254		—		79,203		319,051
FTSE RAFI US 1500 Small-Mid Portfolio		498,019		67,242		228,798		201,979

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

April 30, 2010

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

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

Fund				Licensor
Dynamic MagniQuant Portfolio				NYSE Arca

Dynamic Market Portfolio				NYSE Arca

Dynamic OTC Portfolio				NYSE Arca

FTSE RAFI US 1000 Portfolio				FTSE International Ltd.

FTSE RAFI US 1500 Small-Mid Portfolio				FTSE International Ltd.

NXQ Portfolio				The NASDAQ OMX Group, Inc.

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

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

Note 4. Investments in Affiliates

The Fund's Adviser is a subsidiary of Invesco Ltd. and therefore, Invesco Ltd. is considered to be affiliated with the Fund. The table below shows the transactions in and earnings from the investment in Invesco Ltd. for the fiscal year ended April 30, 2010.

FTSE RAFI US 1000 Portfolio

				Value 04/30/09				Purchases at Cost				Proceeds from Sales				Change in Unrealized Appreciation (Depreciation)				Realized Gain				Value 04/30/10				Dividend Income
Invesco Ltd.				$	4,330,859			$	1,275,936			$	(7,053,287	)		$	(545,011	)		$	2,271,429			$	279,926			$	118,692

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

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

April 30, 2010

investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment's assigned level:

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

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

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

The following is a summary of the tiered valuation input levels, as of April 30, 2010. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

	Investment in Securities
	Level 1		Level 2		Level 3		Total
Dynamic MagniQuant Portfolio
Equity Securities	$	27,061,846	$	—	$	—	$	27,061,846
Money Market Fund		51,668		—		—		51,668
Total Investments		27,113,514		—		—		27,113,514
Dynamic Market Portfolio
Equity Securities		229,951,471		—		—		229,951,471
Money Market Fund		231,098		—		—		231,098
Total Investments		230,182,569		—		—		230,182,569
Dynamic OTC Portfolio
Equity Securities		40,629,224		—		—		40,629,224
Money Market Fund		62,213		—		—		62,213
Total Investments		40,691,437		—		—		40,691,437
FTSE RAFI US 1000 Portfolio
Equity Securities		648,379,316		—		—		648,379,316
FTSE RAFI US 1500 Small-Mid Portfolio
Equity Securities		284,067,771		36,653		—		284,104,424
Money Market Fund		48,096		—		—		48,096
Total Investments		284,115,867		36,653		—		284,152,520
NXQ Portfolio
Equity Securities		2,753,799		—		—		2,753,799

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

April 30, 2010

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, 2010 and 2009:

	2010				2009
	Ordinary Income		Return of Capital		Ordinary Income		Return of Capital
Dynamic MagniQuant Portfolio	$	149,699	$	—	$	279,388	$	—
Dynamic Market Portfolio		2,569,156		—		5,193,546		—
Dynamic OTC Portfolio		61,560		—		—		—
FTSE RAFI US 1000 Portfolio		7,652,691		—		15,035,089		—
FTSE RAFI US 1500 Small-Mid Portfolio		1,105,854		—		1,209,035		—
NXQ Portfolio		—		—		2,563		2,563

Tax Components of Net Assets at Fiscal Year-End:

	Undistributed Ordinary Income		Temporary Book/Tax Differences			Net Unrealized Appreciation (Depreciation)			Capital Loss Carryforward			Post-October Deferrals*			Shares of Beneficial Interest		Total Net Assets
Dynamic MagniQuant Portfolio	$	12,022	$	(3,638	)	$	3,590,387		$	(22,995,896	)	$	(768,139	)	$	47,238,385	$	27,073,121
Dynamic Market Portfolio		233,891		(12,533	)		17,208,532			(333,974,746	)		(259,703	)		546,955,220		230,150,661
Dynamic OTC Portfolio		1,394		(4,188	)		5,837,087			(75,473,565	)		(1,207,688	)		111,481,728		40,634,768
FTSE RAFI US 1000 Portfolio		1,075,381		(16,667	)		(34,558,543	)		(95,828,111	)		(38,484,471	)		816,240,400		648,427,989
FTSE RAFI US 1500 Small-Mid Portfolio		370,165		(5,171	)		21,502,012			(13,530,742	)		(3,445,251	)		279,244,148		284,135,161
NXQ Portfolio		—		—			646,238			(877,901	)		(41,892	)		3,025,668		2,752,113

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

Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Funds to utilize. The ability to utilize capital loss carryforward in the future may be limited under Internal Revenue Code rules and related regulations based on the results of future transactions.

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

April 30, 2010

The following Funds have capital loss carryforward amounts as of April 30, 2010, which expire on April 30 of each year listed below:

	2011		2012		2013		2014		2015		2016		2017		2018		Total*
Dynamic MagniQuant Portfolio	$	—	$	—	$	—	$	—	$	—	$	5,211,608	$	10,595,808	$	7,188,480	$	22,995,896
Dynamic Market Portfolio		225,469		8,920,879		5,021,729		13,686,812		65,552,628		39,899,556		96,635,542		104,032,131		333,974,746
Dynamic OTC Portfolio		252,044		651,452		5,297,385		5,449,844		21,767,708		11,353,752		15,764,010		14,937,370		75,473,565
FTSE RAFI US 1000 Portfolio		—		—		—		—		44,432		1,148,192		44,806,580		49,828,907		95,828,111
FTSE RAFI US 1500 Small-Mid Portfolio		—		—		—		—		5,818		128,460		8,229,508		5,166,956		13,530,742
NXQ Portfolio		—		—		—		—		—		14,131		126,742		737,028		877,901

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

Note 7. Investment Transactions

For the fiscal year ended April 30, 2010, the cost of securities purchased and proceeds from sales of securities, excluding short-term securities, money market funds and in-kind transactions, were as follows:

	Purchases		Sales
Dynamic MagniQuant Portfolio	$	28,618,650	$	29,645,686
Dynamic Market Portfolio		294,638,316		254,056,539
Dynamic OTC Portfolio		42,117,200		36,342,890
FTSE RAFI US 1000 Portfolio		121,588,230		124,548,192
FTSE RAFI US 1500 Small-Mid Portfolio		26,134,790		48,222,225
NXQ Portfolio		1,375,399		1,347,657

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

April 30, 2010

For the fiscal year ended April 30, 2010, in-kind transactions associated with creations and redemptions were as follows:

	Securities Received		Securities Delivered
Dynamic MagniQuant Portfolio	$	38,895,528	$	47,853,906
Dynamic Market Portfolio		397,710,267		535,831,735
Dynamic OTC Portfolio		44,252,238		62,055,373
FTSE RAFI US 1000 Portfolio		221,814,084		172,932,839
FTSE RAFI US 1500 Small-Mid Portfolio		225,953,662		97,404,270
NXQ Portfolio		832,660		866,403

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

At April 30, 2010, the aggregate cost and the net unrealized appreciation (depreciation) of investments for tax purposes were as follows:

	Cost		Net Unrealized Appreciation (Depreciation)			Gross Unrealized Appreciation		Gross Unrealized (Depreciation)
Dynamic MagniQuant Portfolio	$	23,523,127	$	3,590,387		$	3,891,377	$	(300,990	)
Dynamic Market Portfolio		212,974,037		17,208,532			19,581,721		(2,373,189	)
Dynamic OTC Portfolio		34,854,350		5,837,087			6,102,949		(265,862	)
FTSE RAFI US 1000 Portfolio		682,937,859		(34,558,543	)		37,592,335		(72,150,878	)
FTSE RAFI US 1500 Small-Mid Portfolio		262,650,508		21,502,012			32,715,918		(11,213,906	)
NXQ Portfolio		2,107,561		646,238			682,508		(36,270	)

Note 8. Reclassification of Permanent Differences

Primarily as a result of differing book/tax treatment of investment activity, on April 30, 2010, 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, 2010, the reclassifications were as follows:

	Undistributed Net Investment Income (Loss)			Undistributed Net Realized Gain (Loss)			Shares of Beneficial Interest
Dynamic MagniQuant Portfolio	$	5,740		$	(8,122,117	)	$	8,116,377
Dynamic Market Portfolio		(2,383	)		(75,261,906	)		75,264,289
Dynamic OTC Portfolio		11,953			(11,892,158	)		11,880,205
FTSE RAFI US 1000 Portfolio		(110,922	)		(52,563,062	)		52,673,984
FTSE RAFI US 1500 Small-Mid Portfolio		(287,371	)		(36,026,571	)		36,313,942
NXQ Portfolio		5,490			(220,903	)		215,413

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

April 30, 2010

Note 9. Trustees' Fees

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

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

Note 10. Capital

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

Note 11. Indemnifications

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

Report of Independent Registered Public Accounting Firm

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

In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of each of the portfolios indicated in Note 1 of the financial statements (each a portfolio of PowerShares Exchange-Traded Fund Trust, hereafter referred to as the "Trust") at April 30, 2010, and the results of each of their operations, the changes in each of their net assets, and the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Trust's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at April 30, 2010 by correspondence with the custodian and brokers, and the application of alternative auditing procedures where securities purchased had not been received, provide a reasonable basis for our opinion.

/s/ PricewaterhouseCoopers LLP
New York, New York
June 28, 2010

Tax Information

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

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

Each Fund designates the following amounts or, if subsequently determined to be different the maximum amount allowable for its fiscal year ended April 30, 2010:

Federal Income Tax Information

	Qualified Dividend Income*			Corporate Dividend Received Deduction*
Dynamic MagniQuant Portfolio		100	%		100	%
Dynamic Market Portfolio		100	%		100	%
Dynamic OTC Portfolio		100	%		100	%
FTSE RAFI US 1000 Portfolio		100	%		100	%
FTSE RAFI US 1500 Small-Mid Portfolio		100	%		100	%
NXQ Portfolio		0	%		0	%

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

Proxy Results

A Special Meeting of Shareholders was held on March 22, 2010 to elect seven individuals to the Board of Trustees of PowerShares Exchange-Traded Fund Trust.

The results of the voting on the above matter were as follows:

Trustees	Votes For		Withheld/ Abstentions*
Ronn R. Bagge		426,624,761		8,241,402
Todd J. Barre		426,876,044		7,990,119
H. Bruce Bond		426,681,223		8,184,940
Kevin M. Carome		425,386,415		9,479,748
Marc M. Kole		426,529,715		8,336,448
Phillip M. Nussbaum		426,531,618		8,334,545
Donald H. Wilson		426,691,769		8,174,394

* Includes Non-Votes.

Trustees and Officers

The Independent Trustees, the Trustees who are affiliated with the Adviser (the "Interested 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, 2010.

Name, Address, and Age of
Independent Trustees

Position(s) Held
with Trust

Term of
Office
and
Length of
Time
Served*

Principal
Occupation(s) During
Past 5 Years

Number of
Portfolios
in Fund
Complex
Overseen by
Independent
Trustees

Other Directorships Held
by Independent Trustees

Ronn R. Bagge
(52)
YQA Capital Management, LLC
1755 S. Naperville Rd., Suite 100
Wheaton, IL 60187

Trustee

Since 2003

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

111

None

Todd J. Barre
(52)
c/o Invesco PowerShares
Capital Management LLC
301 West Roosevelt Road
Wheaton, IL 60187

Trustee

Since 2010

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

111

None

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

** Fund Complex includes all open-end funds (including all of their portfolios) advised by the Adviser. At April 30, 2010, the Fund Complex consisted of the Trust's 62 portfolios and three other exchange-traded fund trusts with 49 portfolios advised by the Adviser.

Trustees and Officers (Continued)

Name, Address, and Age of
Independent Trustees

Position(s) Held
with Trust

Term of
Office
and
Length of
Time
Served*

Principal
Occupation(s) During
Past 5 Years

Number of
Portfolios
in Fund
Complex
Overseen by
Independent
Trustees

Other Directorships Held
by Independent Trustees

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

Trustee

Since 2006

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

111

None

Philip M. Nussbaum
(48)
c/o Invesco PowerShares Capital Management LLC
301 West Roosevelt Road
Wheaton, IL 60187

Trustee

Since 2003

Chairman, Performance Trust Capital Partners (formerly Betzold, Berg, Nussbaum & Heitman, Inc.) (2004-Present); formerly Managing Director, Communication Institute (2002-2003); Executive Vice President of Finance, Betzold, Berg, Nussbaum & Heitman, Inc. (1994-1999)

111

None

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

Trustees and Officers (Continued)

Name, Address, and Age of
Independent Trustees

Position(s) Held
with Trust

Term of
Office
and
Length of
Time
Served*

Principal
Occupation(s) During
Past 5 Years

Number of
Portfolios
in Fund
Complex
Overseen by
Independent
Trustees

Other Directorships Held
by Independent Trustees

Donald H. Wilson
(50)
c/o Invesco PowerShares Capital Management LLC
301 West Roosevelt Road
Wheaton, IL 60187

Trustee

Since 2006

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

111

None

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

Trustees and Officers (Continued)

Name, Address, and Age of
Interested Trustees

Position(s)
Held
with Trust

Term of
Office
and
Length of
Time
Served*

Principal
Occupation(s) During
Past 5 Years

Number of
Portfolios
in Fund
Complex
Overseen by
Interested
Trustees

Other Directorships Held
by Interested Trustees

H. Bruce Bond
(46)
Invesco PowerShares Capital Management LLC
301 West Roosevelt Road
Wheaton, IL 60187

Chairman of the Board and Trustee

Since 2003

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

111

None

* This is the date the Interested 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, 2010, the Fund Complex consists of the Trust's 62 portfolios and three other exchange-traded fund trusts with 49 portfolios advised by the Adviser.

Trustees and Officers (Continued)

Name, Address, and Age of
Interested Trustees

Position(s)
Held
with Trust

Term of
Office
and
Length of
Time
Served*

Principal
Occupation(s) During
Past 5 Years

Number of
Portfolios
in Fund
Complex
Overseen by
Interested
Trustees

Other Directorships Held
by Interested Trustees

Kevin M. Carome
(53)
Invesco Ltd.
Two Peachtree Pointe 1555 Peachtree St., N.E., Suite 1800
Atlanta, GA 30309

Trustee

Since 2010

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

111

None

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

Trustees and Officers (Continued)

Name, Address, and
Age of Executive Officer

Position(s)
Held
with Trust

Length of
Time
Served*

Principal Occupation(s) During Past 5 Years

Andrew Schlossberg
(35)
Invesco Management Group, Inc.
11 Greenway Plaza
Suite 100
Houston, Texas 77046

President

Since 2009

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

Bruce T. Duncan
(55)
Invesco PowerShares Capital Management LLC
301 West Roosevelt Road
Wheaton, IL 60187

Treasurer and Secretary

Treasurer since 2006; Secretary since 2008

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

Benjamin Fulton
(48)
Invesco PowerShares Capital Management LLC 301 West Roosevelt Road Wheaton, IL 60187

Vice President

Since 2009

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

Peter Hubbard
(28)
Invesco PowerShares
Capital Management LLC
301 West Roosevelt Road
Wheaton, IL 60187

Vice President

Since 2009

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

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

Trustees and Officers (Continued)

Name, Address, and
Age of Executive Officer

Position(s)
Held
with Trust

Length of
Time
Served*

Principal Occupation(s) During Past 5 Years

David Warren
(52)
Invesco Trimark Ltd. 5140 Yonge Street Suite 900
Toronto,
Ontario M2N 6X7

Vice President

Since 2009

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

Todd Spillane
(51)
Invesco PowerShares Capital Management LLC 11 Greenway Plaza
Suite 100
Houston, Texas 77046

Chief Compliance Officer

Since 2010

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

Availability of Additional Information About the Trustees

The Statement of Additional Information includes additional information about the Trustees and is available, without charge, upon request at 800.337.4246.

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

Board Considerations Regarding Continuation of Investment Advisory Agreement

At a meeting held on April 15, 2010, the Board of Trustees of the PowerShares Exchange-Traded Fund Trust (the "Trust"), including the Independent Trustees, unanimously approved the continuation of the Investment Advisory Agreement between Invesco PowerShares Capital Management LLC (the "Adviser") and the Trust for the following 57 series (each, a "Fund" and collectively, the "Funds"):

PowerShares Dynamic Market Portfolio

PowerShares Dynamic OTC Portfolio

PowerShares Golden Dragon Halter USX China Portfolio

PowerShares High Yield Equity Dividend
Achievers^TM Portfolio

PowerShares WilderHill Clean Energy Portfolio

PowerShares Dynamic Large Cap Growth Portfolio

PowerShares Dynamic Large Cap Value Portfolio

PowerShares Dynamic Mid Cap Growth Portfolio

PowerShares Dynamic Mid Cap Value Portfolio

PowerShares Dynamic Small Cap Growth Portfolio

PowerShares Dynamic Small Cap Value Portfolio

PowerShares Dynamic Biotechnology & Genome Portfolio

PowerShares Dynamic Food & Beverage Portfolio

PowerShares Dynamic Leisure and Entertainment Portfolio

PowerShares Dynamic Media Portfolio

PowerShares Dynamic Networking Portfolio

PowerShares Dynamic Pharmaceuticals Portfolio

PowerShares Dynamic Semiconductors Portfolio

PowerShares Dynamic Software Portfolio

PowerShares Zacks Micro Cap Portfolio

PowerShares Aerospace & Defense Portfolio

PowerShares Dynamic Telecommunications & Wireless Portfolio

PowerShares Value Line Timeliness Select Portfolio

PowerShares Dividend Achievers^TM Portfolio

PowerShares International Dividend Achievers^TM Portfolio

PowerShares Zacks Small Cap Portfolio

PowerShares Dynamic Building and Construction Portfolio

PowerShares Dynamic Energy Exploration and Production Portfolio

PowerShares Dynamic Insurance Portfolio

PowerShares Dynamic Oil and Gas Services Portfolio

PowerShares Dynamic Retail Portfolio

PowerShares Dynamic Utilities Portfolio

PowerShares Lux Nanotech Portfolio

PowerShares FTSE RAFI US 1000 Portfolio

PowerShares FTSE RAFI US 1500 Small-Mid Portfolio

PowerShares Water Resources Portfolio

PowerShares Dynamic Energy Sector Portfolio

PowerShares Dynamic Financial Sector Portfolio

PowerShares Dynamic Healthcare Sector Portfolio

PowerShares Dynamic Industrials Sector Portfolio

PowerShares Dynamic Large Cap Portfolio

PowerShares Dynamic MagniQuant Portfolio

PowerShares Dynamic Mid Cap Portfolio

PowerShares Dynamic Small Cap Portfolio

PowerShares Dynamic Technology Sector Portfolio

PowerShares Buyback Achievers(TM) Portfolio

PowerShares Cleantech Portfolio

PowerShares Dynamic Banking Portfolio

PowerShares Dynamic Basic Materials Sector Portfolio

PowerShares Dynamic Consumer Discretionary Sector Portfolio

PowerShares Dynamic Consumer Staples Sector Portfolio

PowerShares Dynamic Healthcare Services Portfolio

PowerShares Financial Preferred Portfolio

PowerShares Global Listed Private Equity Portfolio

PowerShares DWA Technical Leaders Portfolio

PowerShares Value Line Industry Rotation Portfolio

PowerShares WilderHill Progressive Energy Portfolio

Board Considerations Regarding Continuation of Investment Advisory Agreement (Continued)

companies and (vii) any benefits realized by the Adviser from its relationship with each Fund. Based on all of the information considered and the conclusions reached, the Board, including the Independent Trustees, determined to approve the continuation of the Investment Advisory Agreement for each Fund. No single factor was determinative in the Board's analysis.

Nature, Extent and Quality of Services. In evaluating the nature, extent and quality of the Adviser's services, the Trustees reviewed information concerning the functions performed by the Adviser for the Funds, information describing the Adviser's current organization and projected staffing, including operations assistance provided by the Adviser's parent organization, Invesco Ltd., and the background and experience of the persons responsible for the day-to-day management of the Funds. The Trustees reviewed matters related to the Adviser's execution of portfolio transactions on behalf of the Funds. The Trustees also reviewed information on the performance of the Funds and the performance of their underlying indices through December 31, 2009. The Trustees also reviewed reports on the correlation and tracking error between the underlying index and each Fund's performance, including a report of Ibbotson Associates, a consultant to the Independent Trustees, that analyzed the reasons for tracking error for certain PowerShares funds, as well as the Adviser's analysis of the tracking error between each Fund and its underlying index. The Trustees noted that each Fund's correlation was within the targeted range set forth in the Trust's registration statement and that, for each Fund other than PowerShares Global Listed Private Equity Portfolio, the tracking error was within the targeted range set forth in the Trust's registration statement. The Trustees reviewed the reasons for PowerShares Global Listed Private Equity Portfolio's tracking error. The Trustees concluded that each Fund was correlated to its underlying index and that the tracking error for each Fund was within an acceptable range given that Fund's particular circumstances.

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

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

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

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

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

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

Board Considerations Regarding Continuation of Investment Advisory Agreement (Continued)

The Trustees also noted that the Adviser has agreed to waive a portion of its advisory fee and/or pay expenses (an "Expense Cap") to the extent necessary to prevent the annual operating expenses of each Fund from exceeding the percentage of that Fund's average daily net assets, at least until August 31, 2011, as set forth below:

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

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

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

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

• higher than the median advisory fee of its ETF peer funds (except for the advisory fee of each of PowerShares Financial Preferred Portfolio, PowerShares Golden Dragon Halter USX China Portfolio and PowerShares International Dividend Achievers(TM) Portfolio, which was lower than the median advisory fee of its ETF peer funds); and

• higher than the median advisory fee of its open-end index peer funds (except for the advisory fee of each of PowerShares DWA Technical Leaders Portfolio, PowerShares Dynamic Banking Portfolio, PowerShares Dynamic Financial Sector Portfolio, PowerShares Dynamic Insurance Portfolio, PowerShares Dynamic Mid Cap Growth Portfolio, PowerShares Dynamic Mid Cap Value Portfolio, PowerShares Dynamic OTC Portfolio, PowerShares Financial Preferred Portfolio, PowerShares FTSE RAFI US 1500 Small-Mid Portfolio, PowerShares Golden Dragon Halter USX China Portfolio, PowerShares International Dividend Achievers(TM) Portfolio, PowerShares Value Line Industry Rotation Portfolio and PowerShares Value Line Timeliness Select Portfolio, which was equal to or lower than the median advisory fee of its open-end index peer funds, and there was no comparable data for PowerShares Dynamic Basic Materials Sector Portfolio); but

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

Board Considerations Regarding Continuation of Investment Advisory Agreement (Continued)

Funds, and the higher administrative, operational and management oversight costs for the Adviser. With respect to the Funds' expense ratios, the Trustees noted that the net expense ratio for each Fund was:

• higher than the median expense ratio of its ETF peer funds (except for the net expense ratio of each of PowerShares Dynamic OTC Portfolio, PowerShares FTSE RAFI US 1000 Portfolio and PowerShares International Dividend Achievers^TM Portfolio, which was less than the median expense ratio of its ETF peer funds); and

• higher than the median expense ratio of its open-end index peer funds (except for the net expense ratio of each of PowerShares Dynamic Banking Portfolio, PowerShares Dynamic Financial Sector Portfolio, PowerShares Dynamic Insurance Portfolio, PowerShares Dynamic Mid Cap Growth Portfolio, PowerShares Dynamic Mid Cap Value Portfolio, PowerShares Dynamic Oil and Gas Services Portfolio, PowerShares Dynamic Small Cap Growth Portfolio, PowerShares Dynamic Telecommunications & Wireless Portfolio, PowerShares Dynamic Utilities Portfolio, PowerShares Financial Preferred Portfolio and PowerShares Global Listed Private Equity Portfolio, which was lower than the median expense ratio of its open-end index peer funds, and there was no comparable data for PowerShares Dynamic Basic Materials Sector Portfolio); but

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

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

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 profitability as well as any profits or losses realized by the Adviser from its relationship to each Fund. The Trustees concluded that the estimated profitability to the Adviser of the advisory services provided to any of the Funds was not unreasonable.

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

Board Considerations Regarding Continuation of Investment Advisory Agreement (Continued)

relation to the asset size of that Fund, and concluded that the flat advisory fee was reasonable and appropriate, noting the Fund expenses the Adviser has borne as a result of the Expense Cap.

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

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

Board Considerations Regarding Continuation of Investment Advisory Agreement

At a meeting held on April 15, 2010, the Board of Trustees of the PowerShares Exchange-Traded Fund Trust (the "Trust"), including the Independent Trustees, unanimously approved the continuation of the Investment Advisory Agreement between Invesco PowerShares Capital Management LLC (the "Adviser") and the Trust for the following five series (each, a "Fund" and collectively, the "Funds"):

PowerShares FTSE NASDAQ Small Cap Portfolio

PowerShares NASDAQ Internet Portfolio

PowerShares NASDAQ-100 BuyWrite Portfolio

PowerShares NXQ Portfolio

PowerShares S&P 500 BuyWrite Portfolio

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

Nature, Extent and Quality of Services. In evaluating the nature, extent and quality of the Adviser's services, the Trustees reviewed information concerning the functions performed by the Adviser for the Funds, information describing the Adviser's current organization and projected staffing, including operations assistance provided by the Adviser's parent organization, Invesco Ltd., and the background and experience of the persons responsible for the day-to-day management of the Funds. The Trustees reviewed matters related to the Adviser's oversight of the execution of portfolio transactions on behalf of the Funds. The Trustees also reviewed information on the performance of the Funds and the performance of their underlying indices through December 31, 2009. The Trustees also reviewed reports on the correlation and tracking error between the underlying index and each Fund's performance, including a report of Ibbotson Associates, a consultant to the Independent Trustees, that analyzed the reasons for tracking error for certain PowerShares funds, as well as the Adviser's analysis of the tracking error between each Fund and its underlying index. The Trustees noted that, in each case, the correlation and tracking error for each Fund was within the targeted range set forth in the Trust's registration statement. The Trustees concluded that each Fund was correlated to its underlying index and that the tracking error for each Fund was within an acceptable range given that Fund's particular circumstances.

Board Considerations Regarding Continuation of Investment Advisory Agreement (Continued)

by the Adviser from Lipper Inc. databases on the expense ratios of comparable exchange-traded funds ("ETFs"), open-end (non-ETF) index funds and open-end actively-managed funds. The Trustees noted that the annual unitary advisory fee is 0.70% for each of PowerShares FTSE NASDAQ Small Cap Portfolio and PowerShares NXQ Portfolio, 0.60% for PowerShares NASDAQ Internet Portfolio and 0.75% for each of PowerShares NASDAQ-100 BuyWrite Portfolio and PowerShares S&P 500 BuyWrite Portfolio, and that the Adviser pays all other expenses of each Fund, except that each Fund pays its brokerage expenses, taxes, interest and extraordinary expenses.

The Trustees noted that the Adviser represented that it does not provide investment advisory services to any clients other than the Funds and other ETFs overseen by the Board. The Trustees noted that: the advisory fee for PowerShares FTSE NASDAQ Small Cap Portfolio was higher than the median expense ratios of its ETF peer funds and open-end index peer funds, but lower than the median expense ratio of its open-end actively-managed peer funds; the advisory fee for PowerShares NASDAQ Internet Portfolio was equal to or lower than the median expense ratio of its ETF peer funds and open-end actively-managed peer funds, but higher than its open-end index peer funds; the advisory fee for each of PowerShares NASDAQ-100 BuyWrite Portfolio and PowerShares S&P 500 BuyWrite Portfolio was equal to or lower than the median expense ratio for each of its peer group funds; and the advisory fee for PowerShares NXQ Portfolio was higher than the median expense ratio of its ETF peer funds, but lower than the median expense ratios of its open-end index peer funds and open-end actively-managed peer funds. The Trustees noted that each Fund's advisory fee was reasonable because of the complexity of the indices, which generally require more frequent rebalancing of the portfolios, the distinguishing factors of the Funds and the higher administrative, operational and management oversight costs for the Adviser. The Trustees also noted that a portion of each Fund's advisory fee was attributable to a license fee payable out of the unitary fee charged to that Fund. The Board concluded that the unitary advisory fee charged to each Fund was reasonable and appropriate in light of the services provided.

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

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

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PROXY VOTING POLICIES AND PROCEDURES

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

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

QUARTERLY PORTFOLIOS

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

301 West Roosevelt Road
Wheaton, IL 60187

800.983.0903
www.invescopowershares.com

2010 Annual Report to Shareholders

April 30, 2010

PowerShares Dynamic Large Cap Growth Portfolio

PowerShares Dynamic Large Cap Portfolio

PowerShares Dynamic Large Cap Value Portfolio

PowerShares Dynamic Mid Cap Growth Portfolio

PowerShares Dynamic Mid Cap Portfolio

PowerShares Dynamic Mid Cap Value Portfolio

PowerShares Dynamic Small Cap Growth Portfolio

PowerShares Dynamic Small Cap Portfolio

PowerShares Dynamic Small Cap Value Portfolio

PowerShares FTSE NASDAQ Small Cap Portfolio

PowerShares Zacks Micro Cap Portfolio

PowerShares Zacks Small Cap Portfolio

Table of Contents

The Market Environment					2

Manager's Analysis					4

Frequency Distribution of Discounts & Premiums					28

Fees and Expenses					30

Style Portfolios

Schedules of Investments

PowerShares Dynamic Large Cap Growth Portfolio					32

PowerShares Dynamic Large Cap Portfolio					33

PowerShares Dynamic Large Cap Value Portfolio					35

PowerShares Dynamic Mid Cap Growth Portfolio					36

PowerShares Dynamic Mid Cap Portfolio					38

PowerShares Dynamic Mid Cap Value Portfolio					40

PowerShares Dynamic Small Cap Growth Portfolio					42

PowerShares Dynamic Small Cap Portfolio					44

PowerShares Dynamic Small Cap Value Portfolio					47

PowerShares FTSE NASDAQ Small Cap Portfolio					49

PowerShares Zacks Micro Cap Portfolio					59

PowerShares Zacks Small Cap Portfolio					64

Statements of Assets and Liabilities					68

Statements of Operations					70

Statements of Changes in Net Assets					72

Financial Highlights					76

Notes to Financial Statements					82

Report of Independent Registered Public Accounting Firm					95

Tax Information					96

Proxy Results					97

Trustees and Officers					98

Board Consideration Regarding Continuation of Investment Advisory Agreements					104

The Market Environment

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Manager's Analysis

PowerShares Dynamic Large Cap Growth Portfolio (ticker: PWB)

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

For the fiscal year ended April 30, 2010, the Fund returned 36.15%. Over this same year the Index returned 37.35% while the S&P Citigroup Large Cap Growth Index returned 35.96%. The Fund benefited from positive performance in information technology, consumer discretionary and health care sectors. The Fund suffered negative performance in materials sector.

Sector Breakdown (% of the Fund's

Net Assets) as of April 30, 2010

Information Technology	36.8
Consumer Discretionary	18.5
Health Care	13.5
Industrials	11.6
Consumer Staples	7.2
Materials	5.8
Energy	3.6
Financials	3.0
Money Market Fund	0.0
Other	(0.0	)

Style Allocation (% of the Fund's

Total Investments) as of April 30, 2010

Large-Cap Growth					92.2
Large-Cap Value					6.3
Mid-Cap Growth					1.5

Top Ten Fund Holdings (% of the Fund's

Net Assets) as of April 30, 2010

*Security*
Apple, Inc.					4.0
United Parcel Service, Inc.					3.7
Schlumberger Ltd.					3.6
Amazon.com, Inc.					3.6
Intel Corp.					3.5
Ford Motor Co.					3.5
Cisco Systems, Inc.					3.4
3M Co.					3.4
Microsoft Corp.					3.3
QUALCOMM, Inc.					3.3
Total					35.3

Manager's Analysis (Continued)

PowerShares Dynamic Large Cap Growth Portfolio (ticker: PWB)

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

Fund Performance History (%) As of April 30, 2010

	Avg. Ann.^††									Fund Inception^†
	1 Year			3 Year			5 Year			Avg. Ann.^††			Cumulative
Index
Dynamic Large Cap Growth Intellidex^SM Index		37.35	%		-3.97	%		2.13	%		1.13	%		5.95	%
S&P Citigroup Large Cap Growth Index		35.96	%		-2.10	%		3.28	%		2.47	%		13.41	%
Russell 1000^® Growth Index		38.16	%		-1.93	%		4.05	%		3.16	%		17.45	%
S&P 500^® Index		38.82	%		-5.04	%		2.63	%		1.81	%		9.73	%
Fund
NAV Return		36.15	%		-4.63	%		1.45	%		0.44	%		2.27	%
Share Price Return		36.15	%		-4.65	%		1.44	%		0.40	%		2.06	%

Fund Inception: March 3, 2005

Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses during previous fiscal periods absent which, performance would have been lower. The Adviser has contractually agreed to waive and/or pay certain Fund expenses through August 31, 2011. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.60%. In the Financial Highlights section of this Shareholder Report, the Fund's total net and total gross operating expense ratio was determined to be 0.61%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.

The S&P Citigroup Large Cap Growth Index, Russell 1000^® Growth Index and S&P 500^® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 384, 691 and 500 common stocks, respectively.

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

^†† Average annualized.

Manager's Analysis

PowerShares Dynamic Large Cap Portfolio (ticker: PJF)

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

For the fiscal year ended April 30, 2010, the Fund returned 34.56%. Over this same year the Index returned 35.59% while the S&P 500^® Index returned 38.82%. The Fund benefited from positive performance in information technology, consumer discretionary and health care sectors. Fund performance was positive within each sector in which it was invested.

Sector Breakdown (% of the Fund's

Net Assets) as of April 30, 2010

Consumer Discretionary	22.2
Information Technology	21.3
Industrials	12.9
Consumer Staples	11.6
Health Care	11.4
Financials	10.0
Energy	3.8
Materials	3.7
Telecommunication Services	1.6
Utilities	1.4
Money Market Fund	0.1
Other	(0.0	)

Style Allocation (% of the Fund's

Total Investments) as of April 30, 2010

Large-Cap Growth					59.6
Large-Cap Value					39.0
Mid-Cap Growth					0.8
Mid-Cap Value					0.6

Top Ten Fund Holdings (% of the Fund's

Net Assets) as of April 30, 2010

*Security*
Apple, Inc.					2.0
American Express Co.					1.9
Comcast Corp.					1.9
Walt Disney Co. (The)					1.8
United Parcel Service, Inc.					1.8
General Electric Co.					1.8
Amazon.com, Inc.					1.8
Home Depot, Inc. (The)					1.7
Intel Corp.					1.7
Occidental Petroleum Corp.					1.7
Total					18.1

Manager's Analysis (Continued)

PowerShares Dynamic Large Cap Portfolio (ticker: PJF)

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

Fund Performance History (%) As of April 30, 2010

	Avg. Ann.^††						Fund Inception^†
	1 Year			3 Year			Avg. Ann.^††			Cumulative
Index
Dynamic Large Cap Intellidex^SM Index		35.59	%		-3.03	%		-0.49	%		-1.68	%
S&P 500^® Index		38.82	%		-5.04	%		-2.64	%		-8.75	%
Russell Top 200^® Index		36.32	%		-5.20	%		-2.89	%		-9.53	%
Fund
NAV Return		34.56	%		-3.74	%		-1.20	%		-4.05	%
Share Price Return		34.64	%		-3.75	%		-1.23	%		-4.12	%

Fund Inception: December 1, 2006

Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2011. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.93%. In the Financial Highlights section of this Shareholder Report, the Fund's total net (subsidized) operating expense ratio was determined to be 0.65% while the Fund's total gross operating expense ratio was 0.88%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.

The S&P 500^® Index and Russell Top 200^® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 500 and 205 common stocks, respectively.

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

^†† Average annualized.

Manager's Analysis

PowerShares Dynamic Large Cap Value Portfolio (ticker: PWV)

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

For the fiscal year ended April 30, 2010, the Fund returned 36.69%. Over this same year, the Index returned 37.81%, while the S&P Citigroup Large Cap Value Index returned 41.93%. The Fund benefited from positive performance in health care, consumer discretionary and industrials sectors. Fund performance was positive within each sector in which it was invested.

Sector Breakdown (% of the Fund's

Net Assets) as of April 30, 2010

Health Care	17.3
Energy	14.7
Consumer Discretionary	13.2
Industrials	12.4
Consumer Staples	11.7
Financials	9.4
Telecommunication Services	6.4
Utilities	5.5
Information Technology	4.8
Materials	4.6
Other	(0.0	)

Style Allocation (% of the Fund's

Total Investments) as of April 30, 2010

Large-Cap Value					87.0
Large-Cap Growth					11.8
Mid-Cap Value					1.2

Top Ten Fund Holdings (% of the Fund's

Net Assets) as of April 30, 2010

*Security*
ConocoPhillips					3.8
American Express Co.					3.7
Comcast Corp.					3.7
General Electric Co.					3.6
Home Depot, Inc. (The)					3.5
Occidental Petroleum Corp.					3.4
Altria Group, Inc.					3.3
AT&T, Inc.					3.3
Exxon Mobil Corp.					3.2
Bristol-Myers Squibb Co.					3.2
Total					34.7

Manager's Analysis (Continued)

PowerShares Dynamic Large Cap Value Portfolio (ticker: PWV)

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

Fund Performance History (%) As of April 30, 2010

	Avg. Ann.^††									Fund Inception^†
	1 Year			3 Year			5 Year			Avg. Ann.^††			Cumulative
Index
Dynamic Large Cap Value Intellidex^SM Index		37.81	%		-1.57	%		7.29	%		6.43	%		37.90	%
S&P Citigroup Large Cap Value Index		41.93	%		-8.10	%		1.85	%		1.04	%		5.46	%
Russell 1000^® Value Index		42.28	%		-7.66	%		1.93	%		1.24	%		6.60	%
S&P 500^® Index		38.82	%		-5.04	%		2.63	%		1.81	%		9.73	%
Fund
NAV Return		36.69	%		-2.28	%		6.54	%		5.68	%		32.97	%
Share Price Return		36.67	%		-2.26	%		6.52	%		5.66	%		32.86	%

Fund Inception: March 3, 2005

Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses during previous fiscal periods, absent which, performance during those fiscal periods would have been lower. The Adviser has contractually agreed to waive and/or pay certain Fund expenses through August 31, 2011. The Fund is currently subject to recapture, which may result in an increased expense ratio. According the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.61%. In the Financial Highlights section of this Shareholder Report, the Fund's total net operating expense ratio was determined to be 0.63% while the Fund's total gross operating expense ratio was 0.60%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.

Index performance results are based upon a hypothetical Investment in its constituent securities. Index returns do not represent Fund returns. An investor cannot invest directly in an Index. The index does not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the actual results 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 S&P Citigroup Large Cap Value Index, Russell 1000^® Value Index and S&P 500^® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 346, 617 and 500 common stocks, respectively.

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

^†† Average annualized.

Manager's Analysis

PowerShares Dynamic Mid Cap Growth Portfolio (ticker: PWJ)

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

For the fiscal year ended April 30, 2010, the Fund returned 37.89%. Over this same year the Index returned 39.04% while the S&P Citigroup Mid Cap Growth Index returned 48.03%. The Fund benefited from positive performance in information technology, health care and consumer discretionary sectors. Fund performance was positive within each sector in which it was invested.

Sector Breakdown (% of the Fund's

Net Assets) as of April 30, 2010

Information Technology	34.8
Consumer Discretionary	24.8
Health Care	14.3
Industrials	11.4
Financials	5.4
Energy	3.9
Consumer Staples	3.6
Materials	1.8
Money Market Fund	0.1
Other	(0.1	)

Style Allocation (% of the Fund's

Total Investments) as of April 30, 2010

Mid-Cap Growth					88.4
Small-Cap Growth					5.1
Large-Cap Growth					3.6
Mid-Cap Value					2.9

Top Ten Fund Holdings (% of the Fund's

Net Assets) as of April 30, 2010

*Security*
Dolby Laboratories, Inc.					3.7
Cummins, Inc.					3.6
Waters Corp.					3.4
FMC Technologies, Inc.					3.4
International Game Technology					3.4
Urban Outfitters, Inc.					3.3
Varian Medical Systems, Inc.					3.3
Scripps Networks Interactive, Inc.					3.2
Advanced Micro Devices, Inc.					3.2
Polo Ralph Lauren Corp.					3.2
Total					33.7

Manager's Analysis (Continued)

PowerShares Dynamic Mid Cap Growth Portfolio (ticker: PWJ)

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

Fund Performance History (%) As of April 30, 2010

	Avg. Ann.^††									Fund Inception^†
	1 Year			3 Year			5 Year			Avg. Ann.^††			Cumulative
Index
Dynamic Mid Cap Growth Intellidex^SM Index		39.04	%		-2.51	%		7.47	%		5.69	%		33.02	%
S&P Citigroup Mid Cap Growth Index		48.03	%		1.23	%		7.29	%		5.94	%		34.77	%
Russell Midcap^® Growth Index		46.95	%		-2.49	%		5.74	%		4.43	%		25.07	%
S&P 500^® Index		38.82	%		-5.04	%		2.63	%		1.81	%		9.73	%
Fund
NAV Return		37.89	%		-3.20	%		6.70	%		4.93	%		28.19	%
Share Price Return		38.02	%		-3.21	%		6.69	%		4.89	%		27.96	%

Fund Inception: March 3, 2005

Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses during previous fiscal periods, absent which, performance during those fiscal periods would have been lower. The Adviser has contractually agreed to waive and/or pay certain Fund expenses through August 31, 2011. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.61%. In the Financial Highlights section of this Shareholder Report, the Fund's total net operating expense ratio was determined to be 0.63% while the Fund's total gross operating expense ratio was 0.66%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.

The S&P Citigroup Mid Cap Growth Index, Russell MidCap^® Growth Index and S&P 500^® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 258, 548 and 500 common stocks, respectively.

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

^†† Average annualized.

Manager's Analysis

PowerShares Dynamic Mid Cap Portfolio (ticker: PJG)

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

For the fiscal year ended April 30, 2010, the Fund returned 42.59%. Over this same year the Index returned 44.06% while the S&P Mid Cap 400^® Index returned 48.92%. The Fund benefited from positive performance in consumer discretionary, information technology and health care sectors. Fund performance was positive within each sector in which it was invested.

Sector Breakdown (% of the Fund's

Net Assets) as of April 30, 2010

Information Technology	23.5
Consumer Discretionary	23.3
Industrials	18.6
Health Care	10.2
Consumer Staples	10.2
Materials	6.5
Utilities	3.8
Financials	2.0
Telecommunication Services	1.6
Energy	0.3
Money Market Fund	0.2
Other	(0.2	)

Style Allocation (% of the Fund's

Total Investments) as of April 30, 2010

Mid-Cap Growth					49.9
Mid-Cap Value					36.0
Large-Cap Value					5.9
Small-Cap Value					3.8
Small-Cap Growth					2.6
Large-Cap Growth					1.8

Top Ten Fund Holdings (% of the Fund's

Net Assets) as of April 30, 2010

*Security*
SanDisk Corp.					1.9
Whirlpool Corp.					1.8
Dolby Laboratories Inc.					1.8
Cummins, Inc.					1.8
Limited Brands, Inc.					1.8
Sigma-Aldrich Corp.					1.7
Sherwin-Williams Co. (The)					1.7
Waters Corp.					1.7
McDermott International, Inc.					1.7
Hershey Co. (The)					1.6
Total					17.5

Manager's Analysis (Continued)

PowerShares Dynamic Mid Cap Portfolio (ticker: PJG)

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

Fund Performance History (%) As of April 30, 2010

	Avg. Ann.^††						Fund Inception^†
	1 Year			3 Year			Avg. Ann.^††			Cumulative
Index
Dynamic Mid Cap Intellidex^SM Index		44.06	%		-4.93	%		-1.29	%		-4.35	%
S&P Mid Cap 400^® Index		48.92	%		-0.44	%		2.02	%		7.07	%
Russell Midcap^® Index		50.84	%		-3.32	%		-0.62	%		-2.09	%
S&P 500^® Index		38.82	%		-5.04	%		-2.64	%		-8.75	%
Fund
NAV Return		42.59	%		-5.63	%		-2.01	%		-6.69	%
Share Price Return		42.62	%		-5.66	%		-2.01	%		-6.69	%

Fund Inception: December 1, 2006

Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2011. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 1.17%. In the Financial Highlights section of this Shareholder Report, the Fund's total net (subsidized) operating expense ratio was determined to be 0.65% while the Fund's total gross operating expense ratio was 1.11%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.

The S&P Mid Cap 400^® Index, Russell MidCap^® Index and S&P 500^® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 400, 796 and 500 common stocks, respectively.

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

^†† Average annualized.

Manager's Analysis

PowerShares Dynamic Mid Cap Value Portfolio (ticker: PWP)

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

For the fiscal year ended April 30, 2010, the Fund returned 40.58%. Over this same year the Index returned 42.24% while the S&P Citigroup Mid Cap Value Index returned 49.78%. The Fund benefited from positive performance in consumer discretionary, health care and information technology sectors. Fund performance was positive within each sector in which it was invested. The Fund underperformed the Index due to negative trading slippage during the June rebalance.

Sector Breakdown (% of the Fund's

Net Assets) as of April 30, 2010

Consumer Discretionary	22.9
Industrials	20.4
Consumer Staples	16.9
Information Technology	12.3
Materials	8.7
Utilities	7.8
Financials	6.4
Health Care	4.0
Energy	0.6
Money Market Fund	0.1
Other	(0.1	)

Style Allocation (% of the Fund's

Total Investments) as of April 30, 2010

Mid-Cap Value					70.7
Large-Cap Value					12.3
Mid-Cap Growth					9.9
Small-Cap Value					6.5
Small-Cap Growth					0.6

Top Ten Fund Holdings (% of the Fund's

Net Assets) as of April 30, 2010

*Security*
Principal Financial Group, Inc.					3.6
Sherwin-Williams Co. (The)					3.6
Macy's, Inc.					3.5
Hershey Co. (The)					3.4
Rockwell Collins, Inc.					3.3
Dover Corp.					3.3
Parker Hannifin Corp.					3.3
Rockwell Automation, Inc.					3.3
VF Corp.					3.2
DTE Energy Co.					3.2
Total					33.7

Manager's Analysis (Continued)

PowerShares Dynamic Mid Cap Value Portfolio (ticker: PWP)

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

Fund Performance History (%) As of April 30, 2010

	Avg. Ann.^††									Fund Inception^†
	1 Year			3 Year			5 Year			Avg. Ann.^††			Cumulative
Index
Dynamic Mid Cap Value Intellidex^SM Index		42.24	%		-6.50	%		3.70	%		2.77	%		15.12	%
S&P Citigroup Mid Cap Value Index		49.78	%		-2.13	%		6.37	%		5.17	%		29.78	%
Russell Midcap^® Value Index		54.39	%		-4.81	%		5.18	%		4.41	%		24.98	%
S&P 500^® Index		38.82	%		-5.04	%		2.63	%		1.81	%		9.73	%
Fund
NAV Return		40.58	%		-7.18	%		2.86	%		1.95	%		10.48	%
Share Price Return		40.88	%		-7.20	%		2.88	%		1.91	%		10.27	%

Fund Inception: March 3, 2005

Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2011. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.78%. In the Financial Highlights section of this Shareholder Report, the Fund's total net (subsidized) operating expense ratio was determined to be 0.63% while the Fund's total gross operating expense ratio was 0.84%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.

The S&P Citigroup Mid Cap Value Index, Russell MidCap^® Value Index and S&P 500^® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 285, 483 and 500 common stocks, respectively.

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

^†† Average annualized.

Manager's Analysis

PowerShares Dynamic Small Cap Growth Portfolio (ticker: PWT)

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

For the fiscal year ended April 30, 2010, the Fund returned 35.60%. Over this same year the Index returned 37.53% while the S&P Citigroup Small Cap Growth Index returned 45.76%. The Fund benefited from positive performance in information technology, health care and consumer discretionary sectors. The Fund suffered negative performance in telecommunication services sector. The Fund underperformed the Index due to negative trading during the June rebalance.

Sector Breakdown (% of the Fund's

Net Assets) as of April 30, 2010

Information Technology	36.1
Health Care	17.6
Consumer Discretionary	17.6
Industrials	12.4
Financials	8.9
Consumer Staples	3.1
Materials	2.3
Telecommunication Services	1.7
Energy	0.4
Money Market Fund	0.1
Other	(0.2	)

Style Allocation (% of the Fund's

Total Investments) as of April 30, 2010

Small-Cap Growth					97.7
Small-Cap Value					2.3

Top Ten Fund Holdings (% of the Fund's

Net Assets) as of April 30, 2010

*Security*
LaSalle Hotel Properties					2.8
RF Micro Devices, Inc.					2.8
Under Armour, Inc.					2.7
Lawson Software, Inc.					2.7
Kaydon Corp.					2.7
Ulta Salon Cosmetics & Fragrance, Inc.					2.6
Hittite Microwave Corp.					2.5
Dionex Corp.					2.5
PAREXEL International Corp.					2.4
Deckers Outdoor Corp.					2.4
Total					26.1

Manager's Analysis (Continued)

PowerShares Dynamic Small Cap Growth Portfolio (ticker: PWT)

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

Fund Performance History (%) As of April 30, 2010

	Avg. Ann.^††									Fund Inception^†
	1 Year			3 Year			5 Year			Avg. Ann.^††			Cumulative
Index
Dynamic Small Cap Growth Intellidex^SM Index		37.53	%		-7.70	%		1.18	%		-0.46	%		-2.35	%
S&P Citigroup Small Cap Growth Index		45.76	%		-1.43	%		5.94	%		3.88	%		21.72	%
Russell 2000^® Growth Index		45.20	%		-1.93	%		6.06	%		3.75	%		20.97	%
S&P 500^® Index		38.82	%		-5.04	%		2.63	%		1.81	%		9.73	%
Fund
NAV Return		35.60	%		-8.54	%		0.46	%		-1.16	%		-5.86	%
Share Price Return		35.54	%		-8.58	%		0.51	%		-1.23	%		-6.18	%

Fund Inception: March 3, 2005

Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2011. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.86%. In the Financial Highlights section of this Shareholder Report, the Fund's total net (subsidized) operating expense ratio was determined to be 0.63% while the Fund's total gross operating expense ratio was 0.94%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.

The S&P Citigroup Small Cap Growth Index, Russell 2000^® Growth Index and S&P 500^® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 362, 1245 and 500 common stocks, respectively.

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

^†† Average annualized.

Manager's Analysis

PowerShares Dynamic Small Cap Portfolio (ticker: PJM)

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

For the fiscal year ended April 30, 2010, the Fund returned 41.37%. Over this same year the Index returned 42.99% while the S&P Small Cap 600^® Index returned 47.79%. The Fund benefited from positive performance in information technology, consumer discretionary and health care sectors. Fund performance was positive within each sector in which it was invested.

Sector Breakdown (% of the Fund's

Net Assets) as of April 30, 2010

Consumer Discretionary	30.7
Information Technology	21.5
Industrials	13.4
Financials	9.3
Health Care	7.5
Materials	5.1
Consumer Staples	4.5
Energy	4.4
Utilities	2.5
Telecommunication Services	1.1
Money Market Fund	0.2
Other	(0.2	)

Style Allocation (% of the Fund's

Total Investments) as of April 30, 2010

Small-Cap Value					59.2
Small-Cap Growth					40.8

Top Ten Fund Holdings (% of the Fund's

Net Assets) as of April 30, 2010

*Security*
Dillard's, Inc.					1.7
HSN, Inc.					1.4
HNI Corp.					1.3
Toro Co. (The)					1.3
Jones Apparel Group, Inc.					1.3
Kaydon Corp.					1.3
Ulta Salon Cosmetics & Fragrance, Inc.					1.3
Amkor Technology, Inc.					1.3
Skechers U.S.A., Inc.					1.3
NewMarket Corp.					1.3
Total					13.5

Manager's Analysis (Continued)

PowerShares Dynamic Small Cap Portfolio (ticker: PJM)

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

Fund Performance History (%) As of April 30, 2010

	Avg. Ann.^††						Fund Inception^†
	1 Year			3 Year			Avg. Ann.^††			Cumulative
Index
Dynamic Small Cap Intellidex^SM Index		42.99	%		-6.02	%		-3.56	%		-11.63	%
S&P Small Cap 600^® Index		47.79	%		-2.03	%		-0.24	%		-0.81	%
Russell 2000^® Index		48.95	%		-2.79	%		-1.29	%		-4.35	%
S&P 500^® Index		38.82	%		-5.04	%		-2.64	%		-8.75	%
Fund
NAV Return		41.37	%		-6.86	%		-4.44	%		-14.35	%
Share Price Return		41.52	%		-6.89	%		-4.47	%		-14.43	%

Fund Inception: December 1, 2006

Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2011. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 1.35%. In the Financial Highlights section of this Shareholder Report, the Fund's total net (subsidized) operating expense ratio was determined to be 0.65% while the Fund's total gross operating expense ratio was 1.26%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.

The S&P Small Cap 600^® Index, Russell 2000^® Index and S&P 500^® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 600, 2000 and 500 common stocks, respectively.

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

^†† Average annualized.

Manager's Analysis

PowerShares Dynamic Small Cap Value Portfolio (ticker: PWY)

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

For the fiscal year ended April 30, 2010, the Fund returned 42.03%. Over this same year the Index returned 43.71% while the S&P Citigroup Small Cap Value Index returned 49.78%. The Fund benefited from positive performance in consumer discretionary, industrials and information technology sectors. The Fund suffered negative performance in telecommunication services sector, during the fiscal year.

Sector Breakdown (% of the Fund's

Net Assets) as of April 30, 2010

Consumer Discretionary	34.3
Financials	12.4
Information Technology	12.3
Industrials	12.1
Materials	8.3
Energy	8.2
Utilities	5.0
Consumer Staples	4.2
Health Care	3.2
Money Market Fund	0.1
Other	(0.1	)

Style Allocation (% of the Fund's

Total Investments) as of April 30, 2010

Small-Cap Value					92.1
Small-Cap Growth					7.9

Top Ten Fund Holdings (% of the Fund's

Net Assets) as of April 30, 2010

*Security*
Dillard's, Inc.					3.4
Jones Apparel Group, Inc.					2.7
Skechers U.S.A., Inc.					2.6
Hillenbrand, Inc.					2.5
Columbia Sportswear Co.					2.5
Berry Petroleum Co.					2.5
Ruddick Corp.					2.5
Sensient Technologies Corp.					2.5
Rent-A-Center, Inc.					2.4
Teledyne Technologies, Inc.					2.4
Total					26.0

Manager's Analysis (Continued)

PowerShares Dynamic Small Cap Value Portfolio (ticker: PWY)

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

Fund Performance History (%) As of April 30, 2010

	Avg. Ann.^††									Fund Inception^†
	1 Year			3 Year			5 Year			Avg. Ann.^††			Cumulative
Index
Dynamic Small Cap Value Intellidex^SM Index		43.71	%		-5.50	%		3.34	%		1.50	%		7.97	%
S&P Citigroup Small Cap Value Index		49.78	%		-2.72	%		5.71	%		3.99	%		22.40	%
Russell 2000^® Value Index		52.44	%		-3.89	%		5.26	%		3.60	%		20.03	%
S&P 500^® Index		38.82	%		-5.04	%		2.63	%		1.81	%		9.73	%
Fund
NAV Return		42.03	%		-6.25	%		2.52	%		0.70	%		3.67	%
Share Price Return		42.11	%		-6.29	%		2.55	%		0.65	%		3.41	%

Fund Inception: March 3, 2005

Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2011. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.73%. In the Financial Highlights section of this Shareholder Report, the Fund's total net (subsidized) operating expense ratio was determined to be 0.63% while the Fund's total gross operating expense ratio was 0.74%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.

The S&P Citigroup Small Cap Value Index, Russell 2000^® Value Index and S&P 500^® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 467, 1279 and 500 common stocks, respectively.

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

^†† Average annualized.

Manager's Analysis

PowerShares FTSE NASDAQ Small Cap Portfolio (ticker: PQSC)

The PowerShares FTSE NASDAQ Small Cap Portfolio (the "Fund") seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of the FTSE NASDAQ Small Cap Index (the "Index").

For the fiscal year ended April 30, 2010, the Fund returned 50.37%. Over this same year the Index returned 50.77% while the Russell 2000^® Index returned 48.95%. The Fund benefited from positive performance in information technology, health care and consumer discretionary sectors. Fund performance was positive within each sector in which it was invested.

Sector Breakdown (% of the Fund's

Net Assets) as of April 30, 2010

Information Technology					26.2
Health Care					19.3
Financials					15.6
Industrials					13.2
Consumer Discretionary					12.7
Energy					4.8
Consumer Staples					3.5
Materials					2.5
Telecommunication Services					1.6
Utilities					0.3
Other					0.3

Style Allocation (% of the Fund's

Total Investments) as of April 30, 2010

Small-Cap Growth					63.4
Small-Cap Value					32.7
Mid-Cap Growth					2.9
Mid-Cap Value					0.6
Large-Cap Growth					0.3
Large-Cap Value					0.1

Top Ten Fund Holdings (% of the Fund's

Net Assets) as of April 30, 2010

*Security*
InterMune, Inc.					0.7
Brigham Exploration Co.					0.7
Netlogic Microsystems, Inc.					0.6
TiVo, Inc.					0.6
Veeco Instruments, Inc.					0.5
HSN, Inc.					0.5
Incyte Corp.					0.5
DryShips, Inc.					0.4
Acorda Therapeutics, Inc.					0.4
Atlas Air Worldwide Holdings, Inc.					0.4
Total					5.3

Manager's Analysis (Continued)

PowerShares FTSE NASDAQ Small Cap Portfolio (ticker: PQSC)

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

Fund Performance History (%) As of April 30, 2010

	Avg. Ann.^††			Fund Inception^†
	1 Year			Avg. Ann.^††			Cumulative
Index
FTSE NASDAQ Small Cap Index		50.77	%		-0.74	%		-1.54	%
Russell 2000^® Index		48.95	%		3.52	%		7.48	%
S&P Small Cap 600^® Index		47.79	%		3.54	%		7.52	%
S&P 500^® Index		38.82	%		-2.83	%		-5.80	%
Fund
NAV Return		50.37	%		-0.26	%		-0.55	%
Share Price Return		50.43	%		-0.36	%		-0.74	%

Fund Inception: April 3, 2008

The Russell 2000^® Index, S&P Small Cap 600^® Index and S&P 500^® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 2000, 600 and 500 common stocks, respectively.

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

^†† Average annualized.

Manager's Analysis

PowerShares Zacks Micro Cap Portfolio (ticker: PZI)

The PowerShares Zacks Micro Cap Portfolio (the "Fund") seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of the Zacks Micro Cap Index^TM (the "Index").

For the fiscal year ended April 30, 2010, the Fund returned 45.49%. Over this same year the Index returned 44.97% while the Russell Microcap^® Index returned 33.92%. The Fund benefited from positive performance in financials, consumer discretionary and information technology sectors. Fund performance was positive within each sector in which it was invested. The Fund had outperformed the Index due to positive trading during the June rebalance.

Sector Breakdown (% of the Fund's

Net Assets) as of April 30, 2010

Consumer Discretionary	22.4
Financials	20.9
Information Technology	17.2
Industrials	12.2
Energy	9.2
Health Care	7.7
Materials	6.3
Consumer Staples	3.1
Telecommunication Services	0.6
Utilities	0.4
Money Market Fund	0.1
Other	(0.1	)

Style Allocation (% of the Fund's

Total Investments) as of April 30, 2010

Small-Cap Value					56.3
Small-Cap Growth					43.0
Mid-Cap Value					0.5
Mid-Cap Growth					0.2

Top Ten Fund Holdings (% of the Fund's

Net Assets) as of April 30, 2010

*Security*
Keryx Biopharmaceuticals, Inc.					0.5
RAIT Financial Trust					0.5
Federal Agricultural Mortgage Corp.					0.5
Power-One, Inc.					0.4
Blyth, Inc.					0.4
Verso Paper Corp.					0.4
Radio One, Inc.					0.4
Air Transport Services Group, Inc.					0.4
Gray Television, Inc.					0.4
IDT Corp.					0.3
Total					4.2

Manager's Analysis (Continued)

PowerShares Zacks Micro Cap Portfolio (ticker: PZI)

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

Fund Performance History (%) As of April 30, 2010

	Avg. Ann.^††						Fund Inception^†
	1 Year			3 Year			Avg. Ann.^††			Cumulative
Index
Zacks Micro Cap Index^TM		44.97	%		-13.70	%		-4.70	%		-20.25	%
Russell Microcap^® Index		33.92	%		-10.68	%		-3.06	%		-13.52	%
Dow Jones Micro Cap Index		44.53	%		-4.66	%		1.32	%		6.31	%
S&P 500^® Index		38.82	%		-5.04	%		1.51	%		7.23	%
Fund
NAV Return		45.49	%		-13.05	%		-4.24	%		-18.42	%
Share Price Return		45.37	%		-12.98	%		-4.29	%		-18.60	%

Fund Inception: August 18, 2005

Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2011. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.86%. In the Financial Highlights section of this Shareholder Report, the Fund's total net (subsidized) operating expense ratio was determined to be 0.70% while the Fund's total gross operating expense ratio was 0.93%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.

The Russell Micro Cap^® Index, Dow Jones Micro Cap Index and S&P 500^® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 1000, 250 and 500 common stocks, respectively.

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

^†† Average annualized.

Manager's Analysis

PowerShares Zacks Small Cap Portfolio (ticker: PZJ)

The PowerShares Zacks Small Cap Portfolio (the "Fund") seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of the Zacks Small Cap Index^TM (the "Index").

For the fiscal year ended April 30, 2010, the Fund returned 41.41%. Over this same year the Index returned 42.55% while the S&P Small Cap 600^® Index returned 47.79%. The Fund benefited from positive performance in information technology, industrials and consumer discretionary sectors. Fund performance was positive within each sector in which it was invested. The Fund had underperformed the Index due to negative trading during the June rebalance.

Sector Breakdown (% of the Fund's

Net Assets) as of April 30, 2010

Information Technology	22.7
Industrials	21.2
Consumer Discretionary	15.2
Financials	12.3
Health Care	9.6
Materials	7.3
Energy	4.8
Consumer Staples	3.3
Utilities	2.9
Telecommunication Services	0.7
Money Market Fund	0.3
Other	(0.3	)

Style Allocation (% of the Fund's

Total Investments) as of April 30, 2010

Small-Cap Value					50.4
Small-Cap Growth					49.1
Mid-Cap Growth					0.5

Top Ten Fund Holdings (% of the Fund's

Net Assets) as of April 30, 2010

*Security*
Integrated Silicon Solution, Inc.					0.7
Greenbrier Cos., Inc.					0.7
Travelzoo, Inc.					0.6
Pozen, Inc.					0.6
DineEquity, Inc.					0.6
Quaker Chemical Corp.					0.6
United Rentals, Inc.					0.6
Dillard's, Inc.					0.6
Stillwater Mining Co.					0.6
Houston American Energy Corp.					0.6
Total					6.2

Manager's Analysis (Continued)

PowerShares Zacks Small Cap Portfolio (ticker: PZJ)

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

Fund Performance History (%) As of April 30, 2010

	Avg. Ann.^††						Fund Inception^†
	1 Year			3 Year			Avg. Ann.^††			Cumulative
Index
Zacks Small Cap Index^TM		42.55	%		-8.89	%		-4.65	%		-18.14	%
S&P Small Cap 600^® Index		47.79	%		-2.03	%		1.45	%		6.18	%
Russell 2000^® Index		48.95	%		-2.79	%		0.91	%		3.84	%
S&P 500^® Index		38.82	%		-5.04	%		0.29	%		1.23	%
Fund
NAV Return		41.41	%		-9.00	%		-4.68	%		-18.24	%
Share Price Return		41.82	%		-9.04	%		-4.75	%		-18.50	%

Fund Inception: February 16, 2006

Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2011. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 1.09%. In the Financial Highlights section of this Shareholder Report, the Fund's total net (subsidized) operating expense ratio was determined to be 0.70% while the Fund's total gross operating expense ratio was 1.21%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.

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

^†† Average annualized.

Frequency Distribution of Discounts & Premiums

Since Inception through April 30, 2010

					Closing Price Above NAV (bps)
Ticker	Fund Name	Inception	Days		0-24		25-49		50-99		100-149		150-199		200+
PWB	PowerShares Dynamic Large Cap Growth Portfolio	03/03/05		1300		631		34		3		1		0		0
PJF	PowerShares Dynamic Large Cap Portfolio	12/01/06		858		300		15		4		2		1		0
PWV	PowerShares Dynamic Large Cap Value Portfolio	03/03/05		1300		701		33		11		1		0		1
PWJ	PowerShares Dynamic Mid Cap Growth Portfolio	03/03/05		1300		534		19		6		0		0		0
PJG	PowerShares Dynamic Mid Cap Portfolio	12/01/06		858		349		27		1		1		1		1
PWP	PowerShares Dynamic Mid Cap Value Portfolio	03/03/05		1300		515		23		5		1		0		2
PWT	PowerShares Dynamic Small Cap Growth Portfolio	03/03/05		1300		549		50		6		4		0		2
PJM	PowerShares Dynamic Small Cap Portfolio	12/01/06		858		302		28		5		1		0		0
PWY	PowerShares Dynamic Small Cap Value Portfolio	03/03/05		1300		570		46		10		1		1		0
PQSC	PowerShares FTSE NASDAQ Small Cap Portfolio	04/03/08		524		198		14		4		0		0		1
PZI	PowerShares Zacks Micro Cap Portfolio	08/18/05		1183		381		50		14		0		1		0
PZJ	PowerShares Zacks Small Cap Portfolio	02/16/06		1057		433		25		5		1		0		0

	Closing Price Below NAV (bps)
Ticker	-0-24		-25-49		-50-99		-100-149		-150-199		-200+
PWB		607		21		3		0		0		0
PJF		527		7		2		0		0		0
PWV		533		14		6		0		0		0
PWJ		725		14		2		0		0		0
PJG		469		8		1		0		0		0
PWP		732		16		5		0		1		0
PWT		633		50		5		1		0		0
PJM		489		28		3		2		0		0
PWY		617		46		7		1		1		0
PQSC		288		19		0		0		0		0
PZI		671		59		7		0		0		0
PZJ		568		21		3		1		0		0

Fees and Expenses

The example is based on an investment of $1,000 invested at the beginning of the period and held through the six-month period ended April 30, 2010.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value November 1, 2009		Ending Account Value April 30, 2010		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During the Six-Month Period ⁽¹⁾
PowerShares Dynamic Large Cap Growth Portfolio Actual	$	1,000.00	$	1,129.36		0.60	%	$	3.17
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.82		0.60	%	$	3.01
PowerShares Dynamic Large Cap Portfolio Actual	$	1,000.00	$	1,154.28		0.65	%	$	3.47
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.57		0.65	%	$	3.26
PowerShares Dynamic Large Cap Value Portfolio Actual	$	1,000.00	$	1,176.95		0.62	%	$	3.35
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.72		0.62	%	$	3.11
PowerShares Dynamic Mid Cap Growth Portfolio Actual	$	1,000.00	$	1,233.13		0.63	%	$	3.49
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.67		0.63	%	$	3.16
PowerShares Dynamic Mid Cap Portfolio Actual	$	1,000.00	$	1,227.25		0.65	%	$	3.59
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.57		0.65	%	$	3.26

Fees and Expenses (Continued)

	Beginning Account Value November 1, 2009		Ending Account Value April 30, 2010		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During the Six-Month Period ⁽¹⁾
PowerShares Dynamic Mid Cap Value Portfolio Actual	$	1,000.00	$	1,217.15		0.63	%	$	3.46
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.67		0.63	%	$	3.16
PowerShares Dynamic Small Cap Growth Portfolio Actual	$	1,000.00	$	1,269.91		0.63	%	$	3.55
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.67		0.63	%	$	3.16
PowerShares Dynamic Small Cap Portfolio Actual	$	1,000.00	$	1,271.64		0.65	%	$	3.66
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.57		0.65	%	$	3.26
PowerShares Dynamic Small Cap Value Portfolio Actual	$	1,000.00	$	1,253.46		0.63	%	$	3.52
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.67		0.63	%	$	3.16
PowerShares FTSE NASDAQ Small Cap Portfolio Actual	$	1,000.00	$	1,273.83		0.70	%	$	3.95
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.32		0.70	%	$	3.51
PowerShares Zacks Micro Cap Portfolio Actual	$	1,000.00	$	1,326.20		0.70	%	$	4.04
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.32		0.70	%	$	3.51
PowerShares Zacks Small Cap Portfolio Actual	$	1,000.00	$	1,278.30		0.70	%	$	3.95
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.32		0.70	%	$	3.51

(1) Expenses are calculated using the annualized expense ratio, which represents the ongoing expenses as a percentage of net assets for the six months ended April 30, 2010. Expenses are calculated by multiplying the Fund's annualized expense ratio by the average account value for the period; then multiplying the result by 181 and then dividing the result by 365. Expense ratios for the most recent half-year may differ from expenses rations based on annualized data in the Financial Highlights.

Schedule of Investments

PowerShares Dynamic Large Cap Growth Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks—100.0%
		Consumer Discretionary—18.5%
	60,508	Amazon.com, Inc.*	$	8,293,226
	73,788	Bed Bath & Beyond, Inc.*		3,391,297
	84,287	Coach, Inc.		3,518,982
	90,731	DIRECTV, Class A*		3,287,184
	610,350	Ford Motor Co.*		7,946,757
	98,750	Johnson Controls, Inc.		3,317,013
	57,074	Kohl's Corp.*		3,138,499
	45,423	NIKE, Inc., Class B		3,448,060
	119,226	Staples, Inc.		2,805,388
	134,053	Starbucks Corp.		3,482,697
				42,629,103
		Consumer Staples—7.2%
	86,403	Colgate-Palmolive Co.		7,266,492
	50,363	Costco Wholesale Corp.		2,975,446
	51,076	Estee Lauder Cos., Inc. (The), Class A		3,366,930
	87,133	Walgreen Co.		3,062,725
				16,671,593
		Energy—3.6%
	117,280	Schlumberger Ltd.		8,376,138
		Financials—3.0%
	30,176	Franklin Resources, Inc.		3,489,552
	60,576	T. Rowe Price Group, Inc.		3,483,726
				6,973,278
		Health Care—13.5%
	132,003	Abbott Laboratories		6,753,273
	52,555	Allergan, Inc.		3,347,228
	53,953	Baxter International, Inc.		2,547,661
	39,419	Becton, Dickinson and Co.		3,010,429
	150,489	Gilead Sciences, Inc.*		5,969,899
	8,832	Intuitive Surgical, Inc.*		3,184,466
	48,559	Medco Health Solutions, Inc.*		2,861,096
	57,831	Stryker Corp.		3,321,813
				30,995,865
		Industrials—11.6%
	89,401	3M Co.		7,927,187
	41,523	Danaher Corp.		3,499,558
	64,860	Emerson Electric Co.		3,387,638
	67,465	Illinois Tool Works, Inc.		3,447,461
	121,998	United Parcel Service, Inc., Class B		8,434,942
				26,696,786
		Information Technology—36.8%
	88,612	Adobe Systems, Inc.*		2,976,477
	35,025	Apple, Inc.*		9,145,728
	73,788	Automatic Data Processing, Inc.		3,199,448
	98,049	Broadcom Corp., Class A		3,381,710
	136,493	CA, Inc.		3,113,405
	294,514	Cisco Systems, Inc.*		7,928,317

Number of Shares			Value
		Common Stocks (Continued)
	63,813	Cognizant Technology Solutions Corp., Class A*	$	3,265,949
	133,411	eBay, Inc.*		3,176,516
	175,568	EMC Corp.*		3,337,548
	13,600	Google, Inc., Class A*		7,145,984
	349,012	Intel Corp.		7,967,944
	250,025	Microsoft Corp.		7,635,764
	102,323	NetApp, Inc.*		3,547,538
	290,680	Oracle Corp.		7,511,171
	195,310	QUALCOMM, Inc.		7,566,309
	62,012	VMware, Inc., Class A*		3,822,420
				84,722,228
		Materials—5.8%
	72,862	Ecolab, Inc.		3,558,580
	40,862	Freeport-McMoRan Copper & Gold, Inc.		3,086,307
	40,874	Praxair, Inc.		3,424,015
	104,599	Southern Copper Corp.		3,198,637
				13,267,539
		Total Common Stocks (Cost $194,562,749)		230,332,530
		Money Market Fund—0.0%
	106,507	Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $106,507)		106,507
		Total Investments (Cost $194,669,256)—100.0%		230,439,037
		Liabilities in excess of other assets—(0.0%)		(104,728	)
		Net Assets—100.0%	$	230,334,309

Notes to Schedule of Investments:

* Non-income producing security.

See Notes to Financial Statements.

Schedule of Investments

PowerShares Dynamic Large Cap Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks—99.9%
		Consumer Discretionary—22.2%
	5,004	Amazon.com, Inc.*	$	685,848
	6,103	Bed Bath & Beyond, Inc.*		280,494
	6,957	Best Buy Co., Inc.		317,239
	6,968	Coach, Inc.		290,914
	36,039	Comcast Corp., Class A		711,410
	7,501	DIRECTV, Class A*		271,761
	21,629	Ford Motor Co.*		281,610
	11,810	Gap, Inc. (The)		292,061
	18,990	Home Depot, Inc. (The)		669,398
	8,164	Johnson Controls, Inc.		274,229
	4,718	Kohl's Corp.*		259,443
	9,280	McDonald's Corp.		655,075
	7,425	McGraw-Hill Cos., Inc. (The)		250,371
	3,757	NIKE, Inc., Class B		285,194
	6,934	Omnicom Group, Inc.		295,804
	9,857	Staples, Inc.		231,935
	11,083	Starbucks Corp.		287,936
	4,928	Target Corp.		280,255
	8,744	Time Warner, Inc.		289,252
	6,100	TJX Cos., Inc. (The)		282,674
	8,564	Viacom, Inc., Class B*		302,566
	18,966	Walt Disney Co. (The)		698,707
	7,530	Yum! Brands, Inc.		319,423
				8,513,599
		Consumer Staples—11.6%
	11,238	Coca-Cola Co. (The)		600,671
	9,939	Coca-Cola Enterprises, Inc.		275,608
	3,062	Colgate-Palmolive Co.		257,514
	10,381	ConAgra Foods, Inc.		254,023
	4,223	Estee Lauder Cos., Inc. (The), Class A		278,380
	3,526	General Mills, Inc.		250,981
	5,532	H.J. Heinz Co.		259,285
	4,181	Kimberly-Clark Corp.		256,128
	12,097	Philip Morris International, Inc.		593,721
	9,363	Procter & Gamble Co. (The)		582,004
	7,205	Walgreen Co.		253,256
	10,958	Wal-Mart Stores, Inc.		587,897
				4,449,468
		Energy—3.8%
	4,319	Hess Corp.		274,473
	5,842	National Oilwell Varco, Inc.		257,223
	7,420	Occidental Petroleum Corp.		657,857
	11,648	Spectra Energy Corp.		271,864
				1,461,417
		Financials—10.0%
	5,135	Aflac, Inc.		261,680
	8,126	Allstate Corp. (The)		265,476
	15,514	American Express Co.		715,506
	6,343	Ameriprise Financial, Inc.		294,061

Number of Shares			Value
		Common Stocks (Continued)
	2,497	Franklin Resources, Inc.	$	288,753
	3,790	Goldman Sachs Group, Inc. (The)		550,308
	14,806	Progressive Corp. (The)		297,453
	5,010	T. Rowe Price Group, Inc.		288,125
	4,828	Travelers Cos., Inc. (The)		244,973
	24,076	U.S. Bancorp		644,514
				3,850,849
		Health Care—11.4%
	10,915	Abbott Laboratories		558,411
	4,346	Allergan, Inc.		276,797
	24,174	Bristol-Myers Squibb Co.		611,360
	7,475	Cardinal Health, Inc.		259,308
	8,498	Forest Laboratories, Inc.*		231,656
	731	Intuitive Surgical, Inc.*		263,569
	9,405	Johnson & Johnson		604,742
	4,293	McKesson Corp.		278,229
	4,015	Medco Health Solutions, Inc.*		236,564
	4,782	Stryker Corp.		274,678
	5,207	Thermo Fisher Scientific, Inc.*		287,843
	7,499	UnitedHealth Group, Inc.		227,295
	4,429	Zimmer Holdings, Inc.*		269,770
				4,380,222
		Industrials—12.9%
	7,393	3M Co.		655,537
	4,451	Caterpillar, Inc.		303,069
	3,432	Danaher Corp.		289,249
	3,727	Eaton Corp.		287,575
	5,364	Emerson Electric Co.		280,162
	36,892	General Electric Co.		695,783
	6,323	Honeywell International, Inc.		300,153
	5,578	Illinois Tool Works, Inc.		285,036
	2,778	L-3 Communications Holdings, Inc.		259,937
	4,515	Raytheon Co.		263,224
	10,086	United Parcel Service, Inc., Class B		697,346
	8,630	United Technologies Corp.		646,819
				4,963,890
		Information Technology—21.3%
	2,896	Apple, Inc.*		756,203
	6,103	Automatic Data Processing, Inc.		264,626
	11,286	CA, Inc.		257,434
	24,352	Cisco Systems, Inc.*		655,556
	5,276	Cognizant Technology Solutions Corp., Class A*		270,026
	14,403	Corning, Inc.		277,258
	11,031	eBay, Inc.*		262,648
	14,518	EMC Corp.*		275,987
	1,125	Google, Inc., Class A*		591,120
	11,666	Hewlett-Packard Co.		606,282
	28,860	Intel Corp.		658,874
	4,659	International Business Machines Corp.		601,011

See Notes to Financial Statements.

Schedule of Investments (Continued)

PowerShares Dynamic Large Cap Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks (Continued)
	20,672	Microsoft Corp.	$	631,323
	8,461	NetApp, Inc.*		293,343
	24,036	Oracle Corp.		621,090
	15,342	Symantec Corp.*		257,285
	10,415	Texas Instruments, Inc.		270,894
	6,948	Visa, Inc., Class A		626,918
				8,177,878
		Materials—3.7%
	7,530	E.I. du Pont de Nemours & Co.		299,995
	3,378	Freeport-McMoRan Copper & Gold, Inc.		255,140
	10,959	International Paper Co.		293,044
	4,126	PPG Industries, Inc.		290,347
	8,649	Southern Copper Corp.		264,486
				1,403,012
		Telecommunication Services—1.6%
	23,880	AT&T, Inc.		622,313
		Utilities—1.4%
	7,782	Edison International		267,468
	3,342	Entergy Corp.		271,671
				539,139
		Total Common Stocks (Cost $33,093,033)		38,361,787
		Money Market Fund—0.1%
	28,691	Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $28,691)		28,691
		Total Investments (Cost $33,121,724)—100.0%		38,390,478
		Liabilities in excess of other assets—(0.0%)		(14,156	)
		Net Assets—100.0%	$	38,376,322

Notes to Schedule of Investments:

* Non-income producing security.

See Notes to Financial Statements.

Schedule of Investments

PowerShares Dynamic Large Cap Value Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks—100.0%
		Consumer Discretionary—13.2%
	658,123	Comcast Corp., Class A	$	12,991,348
	215,673	Gap, Inc. (The)		5,333,593
	346,781	Home Depot, Inc. (The)		12,224,030
	135,584	McGraw-Hill Cos., Inc. (The)		4,571,893
	126,624	Omnicom Group, Inc.		5,401,780
	156,389	Viacom, Inc., Class B*		5,525,223
				46,047,867
		Consumer Staples—11.7%
	537,750	Altria Group, Inc.		11,394,922
	157,935	Archer-Daniels-Midland Co.		4,412,704
	181,487	Coca-Cola Enterprises, Inc.		5,032,634
	189,574	ConAgra Foods, Inc.		4,638,876
	220,897	Philip Morris International, Inc.		10,841,625
	87,819	Reynolds American, Inc.		4,691,291
				41,012,052
		Energy—14.7%
	225,407	ConocoPhillips		13,341,840
	166,454	Exxon Mobil Corp.		11,293,904
	78,860	Hess Corp.		5,011,553
	106,670	National Oilwell Varco, Inc.		4,696,680
	135,498	Occidental Petroleum Corp.		12,013,253
	212,704	Spectra Energy Corp.		4,964,511
				51,321,741
		Financials—9.4%
	148,382	Allstate Corp. (The)		4,847,640
	283,308	American Express Co.		13,066,165
	91,894	Chubb Corp. (The)		4,858,436
	270,375	Progressive Corp. (The)		5,431,834
	88,171	Travelers Cos., Inc. (The)		4,473,796
				32,677,871
		Health Care—17.3%
	191,124	Amgen, Inc.*		10,962,873
	441,435	Bristol-Myers Squibb Co.		11,163,891
	136,500	Cardinal Health, Inc.		4,735,185
	155,185	Forest Laboratories, Inc.*		4,230,343
	171,740	Johnson & Johnson		11,042,882
	95,078	Thermo Fisher Scientific, Inc.*		5,255,912
	136,945	UnitedHealth Group, Inc.		4,150,803
	74,946	WellPoint, Inc.*		4,032,095
	80,882	Zimmer Holdings, Inc.*		4,926,522
				60,500,506
		Industrials—12.4%
	81,278	Caterpillar, Inc.		5,534,219
	68,070	Eaton Corp.		5,252,281
	63,915	General Dynamics Corp.		4,880,550
	673,694	General Electric Co.		12,705,869
	115,461	Honeywell International, Inc.		5,480,934

Number of Shares			Value
		Common Stocks (Continued)
	50,723	L-3 Communications Holdings, Inc.	$	4,746,151
	82,448	Raytheon Co.		4,806,718
				43,406,722
		Information Technology—4.8%
	350,485	Dell, Inc.*		5,670,847
	213,025	Hewlett-Packard Co.		11,070,909
				16,741,756
		Materials—4.6%
	137,515	E.I. du Pont de Nemours & Co.		5,478,598
	200,128	International Paper Co.		5,351,423
	75,347	PPG Industries, Inc.		5,302,168
				16,132,189
		Telecommunication Services—6.4%
	436,094	AT&T, Inc.		11,364,610
	373,991	Verizon Communications, Inc.		10,804,600
				22,169,210
		Utilities—5.5%
	142,107	Edison International		4,884,217
	61,037	Entergy Corp.		4,961,698
	110,616	PG&E Corp.		4,844,981
	94,304	Sempra Energy		4,637,871
				19,328,767
		Total Investments (Cost $315,703,407)—100.0%		349,338,681
		Liabilities in excess of other assets—(0.0%)		(73,283	)
		Net Assets—100.0%	$	349,265,398

Notes to Schedule of Investments:

* Non-income producing security.

See Notes to Financial Statements.

Schedule of Investments

PowerShares Dynamic Mid Cap Growth Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—24.8%
	15,586	Bally Technologies, Inc.*	$	718,826
	163,113	Expedia, Inc.		3,851,098
	17,801	Fossil, Inc.*		692,459
	33,249	Gentex Corp.		714,521
	49,679	Goodyear Tire & Rubber Co. (The)*		667,189
	15,822	Guess?, Inc.		725,755
	206,701	International Game Technology		4,357,257
	15,339	J.Crew Group, Inc.*		712,803
	15,370	John Wiley & Sons, Inc., Class A		649,690
	34,056	Leggett & Platt, Inc.		835,394
	9,770	Netflix, Inc.*		964,983
	910	NVR, Inc.*		653,426
	45,383	Polo Ralph Lauren Corp.		4,079,932
	91,653	Scripps Networks Interactive, Inc., Class A		4,155,547
	632,689	Sirius XM Radio, Inc.*		746,573
	22,720	Tempur-Pedic International, Inc.*		765,664
	19,019	Thor Industries, Inc.		679,168
	11,794	Tractor Supply Co.		792,203
	24,019	TRW Automotive Holdings Corp.*		773,652
	112,622	Urban Outfitters, Inc.*		4,224,451
				31,760,591
		Consumer Staples—3.6%
	69,282	Brown-Forman Corp., Class B		4,030,826
	14,216	NBTY, Inc.*		578,307
				4,609,133
		Energy—3.9%
	11,794	Dril-Quip, Inc.*		683,227
	64,583	FMC Technologies, Inc.*		4,371,623
				5,054,850
		Financials—5.4%
	46,160	Blackstone Group LP (The)		645,317
	16,064	Credit Acceptance Corp.*		724,486
	33,814	IntercontinentalExchange, Inc.*		3,943,727
	36,628	SEI Investments Co.		822,665
	19,629	Waddell & Reed Financial, Inc., Class A		728,628
				6,864,823
		Health Care—14.3%
	6,907	Bio-Rad Laboratories, Inc., Class A*		771,443
	51,630	Bruker Corp.*		789,423
	12,393	Emergency Medical Services Corp., Class A*		655,342
	69,325	Hospira, Inc.*		3,728,992
	12,221	IDEXX Laboratories, Inc.*		808,297
	12,062	MEDNAX, Inc.*		662,686
	6,495	Mettler-Toledo International, Inc.*		814,993
	13,020	Perrigo Co.		794,610
	17,983	Sirona Dental Systems, Inc.*		749,711

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	74,077	Varian Medical Systems, Inc.*	$	4,176,461
	60,803	Waters Corp.*		4,377,208
				18,329,166
		Industrials—11.4%
	17,526	Armstrong World Industries, Inc.*		763,257
	10,316	Bucyrus International, Inc.		650,011
	63,888	Cummins, Inc.		4,614,630
	23,542	Graco, Inc.		816,437
	16,176	Landstar System, Inc.		715,303
	13,529	Lincoln Electric Holdings, Inc.		810,928
	14,160	MSC Industrial Direct Co., Class A		771,579
	27,424	Owens Corning*		953,807
	30,367	Rollins, Inc.		660,482
	288,362	Southwest Airlines Co.		3,800,611
				14,557,045
		Information Technology—34.8%
	458,610	Advanced Micro Devices, Inc.*		4,155,007
	148,492	Altera Corp.		3,765,757
	87,098	Amphenol Corp., Class A		4,024,799
	14,712	ANSYS, Inc.*		662,040
	98,469	BMC Software, Inc.*		3,875,740
	84,345	Citrix Systems, Inc.*		3,964,215
	68,100	Dolby Laboratories, Inc., Class A*		4,679,832
	11,567	F5 Networks, Inc.*		791,530
	28,582	Jack Henry & Associates, Inc.		729,413
	60,143	JDS Uniphase Corp.*		781,257
	13,066	ManTech International Corp., Class A*		588,362
	21,485	MICROS Systems, Inc.*		798,383
	31,555	Molex, Inc.		707,147
	20,412	National Instruments Corp.		705,847
	44,565	National Semiconductor Corp.		658,671
	223,926	NVIDIA Corp.*		3,520,117
	81,074	ON Semiconductor Corp.*		643,727
	129,328	Red Hat, Inc.*		3,863,027
	21,456	Varian Semiconductor Equipment Associates, Inc.*		706,761
	33,435	VeriFone Holdings, Inc.*		636,268
	25,898	VeriSign, Inc.*		706,238
	140,443	Xilinx, Inc.		3,620,620
				44,584,758
		Materials—1.8%
	27,745	Nalco Holding Co.		686,134
	26,899	Rockwood Holdings, Inc.*		805,356
	34,656	Temple-Inland, Inc.		808,179
				2,299,669
		Total Common Stocks and Other Equity Interests (Cost $105,607,176)		128,060,035

See Notes to Financial Statements.

Schedule of Investments (Continued)

PowerShares Dynamic Mid Cap Growth Portfolio

April 30, 2010

Number of Shares			Value
		Money Market Fund—0.1%
	114,467	Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $114,467)	$	114,467
		Total Investments (Cost $105,721,643)—100.1%		128,174,502
		Liabilities in excess of other assets—(0.1%)		(130,188	)
		Net Assets—100.0%	$	128,044,314

Notes to Schedule of Investments:

* Non-income producing security.

See Notes to Financial Statements.

Schedule of Investments

PowerShares Dynamic Mid Cap Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—23.3%
	1,453	Autoliv, Inc.*	$	79,552
	1,928	Big Lots, Inc.*		73,650
	3,575	Brinker International, Inc.		66,209
	2,256	Carter's, Inc.*		72,688
	15,869	Expedia, Inc.		374,667
	1,793	Fossil, Inc.*		69,748
	4,278	Gannett Co., Inc.		72,811
	3,338	Gentex Corp.		71,734
	1,589	Guess?, Inc.		72,887
	2,503	Hanesbrands, Inc.*		71,260
	1,540	J.Crew Group, Inc.*		71,564
	2,025	Jarden Corp.		65,043
	1,544	John Wiley & Sons, Inc., Class A		65,265
	16,571	Limited Brands, Inc.		444,103
	16,049	Mattel, Inc.		369,929
	9,554	Nordstrom, Inc.		394,867
	91	NVR, Inc.*		65,342
	2,377	PetSmart, Inc.		78,607
	1,489	Phillips-Van Heusen Corp.		93,822
	1,423	Polaris Industries, Inc.		84,199
	4,415	Polo Ralph Lauren Corp.		396,908
	7,215	Ross Stores, Inc.		404,040
	8,041	Service Corp. International		72,208
	5,568	Sherwin-Williams Co. (The)		434,694
	1,132	Stanley Black & Decker, Inc.		70,354
	2,288	Tempur-Pedic International, Inc.*		77,106
	1,908	Thor Industries, Inc.		68,135
	1,460	Tiffany & Co.		70,781
	2,413	TRW Automotive Holdings Corp.*		77,723
	1,387	Tupperware Brands Corp.		70,834
	10,951	Urban Outfitters, Inc.*		410,772
	4,561	VF Corp.		394,162
	1,552	Warnaco Group, Inc. (The)*		74,248
	4,199	Whirlpool Corp.		457,145
	2,824	Wyndham Worldwide Corp.		75,711
				5,912,768
		Consumer Staples—10.2%
	6,740	Brown-Forman Corp., Class B		392,133
	5,755	Clorox Co. (The)		372,348
	1,989	Corn Products International, Inc.		71,604
	11,115	Dr Pepper Snapple Group, Inc.		363,794
	1,118	Energizer Holdings, Inc.*		68,310
	8,877	Hershey Co. (The)		417,308
	1,428	NBTY, Inc.*		58,091
	2,421	Nu Skin Enterprises, Inc., Class A		72,775
	14,161	Safeway, Inc.		334,200
	26,026	Sara Lee Corp.		370,090
	3,803	Tyson Foods, Inc., Class A		74,501
				2,595,154

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
		Energy—0.3%
	2,256	Alliance Holdings GP LP	$	72,688
		Financials—2.0%
	2,505	American Financial Group, Inc.		73,722
	1,603	Commerce Bancshares, Inc.		66,396
	1,641	Erie Indemnity Co., Class A		75,995
	2,316	HCC Insurance Holdings, Inc.		62,972
	1,364	Reinsurance Group of America, Inc.		70,424
	1,398	Torchmark Corp.		74,849
	1,975	Waddell & Reed Financial, Inc., Class A		73,312
				497,670
		Health Care—10.2%
	12,589	AmerisourceBergen Corp.		388,371
	693	Bio-Rad Laboratories, Inc., Class A*		77,401
	5,190	Bruker Corp.*		79,355
	5,728	DaVita, Inc.*		357,599
	1,247	Emergency Medical Services Corp., Class A*		65,941
	8,894	Health Management Associates, Inc., Class A*		82,892
	6,749	Hospira, Inc.*		363,029
	4,814	Laboratory Corp. of America Holdings*		378,236
	1,619	Lincare Holdings, Inc.*		75,591
	1,211	MEDNAX, Inc.*		66,532
	651	Mettler-Toledo International, Inc.*		81,688
	1,314	Perrigo Co.		80,193
	1,807	Sirona Dental Systems, Inc.*		75,334
	5,915	Waters Corp.*		425,821
				2,597,983
		Industrials—18.6%
	1,661	Acuity Brands, Inc.		75,094
	1,754	Armstrong World Industries, Inc.*		76,387
	1,893	Carlisle Cos., Inc.		71,423
	2,051	Crane Co.		73,713
	6,215	Cummins, Inc.		448,909
	1,571	Donaldson Co., Inc.		72,737
	7,803	Dover Corp.		407,473
	2,816	EMCOR Group, Inc.*		80,425
	2,158	Harsco Corp.		66,812
	1,383	Hubbell, Inc., Class B		64,268
	2,089	IDEX Corp.		70,190
	6,888	ITT Corp.		382,766
	1,338	Joy Global, Inc.		76,012
	15,446	McDermott International, Inc.*		423,375
	1,422	MSC Industrial Direct Co., Class A		77,485
	1,700	Oshkosh Corp.*		65,654
	1,644	Pall Corp.		64,099
	5,851	Parker Hannifin Corp.		404,772
	1,153	Regal-Beloit Corp.		72,950
	6,523	Rockwell Automation, Inc.		396,077
	6,271	Rockwell Collins, Inc.		407,615

See Notes to Financial Statements.

Schedule of Investments (Continued)

PowerShares Dynamic Mid Cap Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	28,048	Southwest Airlines Co.	$	369,673
	1,794	Thomas & Betts Corp.*		75,240
	3,471	W.W. Grainger, Inc.		383,684
				4,706,833
		Information Technology—23.5%
	14,442	Altera Corp.		366,249
	8,473	Amphenol Corp., Class A		391,537
	2,297	Arrow Electronics, Inc.*		70,059
	2,343	Avnet, Inc.*		74,906
	5,265	AVX Corp.		81,344
	9,579	BMC Software, Inc.*		377,029
	6,813	Computer Sciences Corp.*		356,933
	6,624	Dolby Laboratories, Inc., Class A*		455,201
	3,214	EchoStar Corp., Class A*		61,741
	1,161	F5 Networks, Inc.*		79,447
	7,317	Fiserv, Inc.*		373,826
	7,804	Harris Corp.		401,750
	1,705	Hewitt Associates, Inc., Class A*		69,888
	3,656	Ingram Micro, Inc., Class A*		66,393
	4,275	Jabil Circuit, Inc.		65,493
	2,866	Jack Henry & Associates, Inc.		73,140
	1,697	Lender Processing Services, Inc.		64,062
	1,922	Lexmark International, Inc., Class A*		71,210
	12,025	LSI Corp.*		72,391
	1,312	ManTech International Corp., Class A*		59,079
	38,948	Micron Technology, Inc.*		364,164
	2,159	MICROS Systems, Inc.*		80,228
	2,049	National Instruments Corp.		70,854
	8,142	ON Semiconductor Corp.*		64,647
	3,723	Parametric Technology Corp.*		69,211
	3,561	QLogic Corp.*		68,977
	2,308	Red Hat, Inc.*		68,940
	12,112	SanDisk Corp.*		483,148
	1,513	Tech Data Corp.*		64,908
	2,125	Teradata Corp.*		61,774
	7,069	TIBCO Software, Inc.*		80,587
	3,354	VeriFone Holdings, Inc.*		63,827
	2,598	VeriSign, Inc.*		70,847
	9,136	Western Digital Corp.*		375,398
	13,669	Xilinx, Inc.		352,387
				5,971,575
		Materials—6.5%
	1,734	Albemarle Corp.		79,174
	1,376	Ashland, Inc.		81,955
	2,230	Cabot Corp.		72,564
	2,081	Celanese Corp., Series A		66,571
	1,240	Domtar Corp.*		87,842
	1,089	Eastman Chemical Co.		72,876
	1,539	International Flavors & Fragrances, Inc.		77,089
	825	Lubrizol Corp. (The)		74,531

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	2,698	Rockwood Holdings, Inc.*	$	80,778
	3,361	RPM International, Inc.		74,211
	3,167	Sealed Air Corp.		68,090
	7,400	Sigma-Aldrich Corp.		438,820
	4,607	Solutia, Inc.*		81,083
	2,195	Sonoco Products Co.		72,720
	3,476	Temple-Inland, Inc.		81,060
	2,238	W.R. Grace & Co.*		64,656
	828	Walter Energy, Inc.		66,911
				1,640,931
		Telecommunication Services—1.6%
	9,431	NII Holdings, Inc.*		400,063
		Utilities—3.8%
	10,062	Constellation Energy Group, Inc.		355,692
	2,437	DPL, Inc.		68,675
	8,126	DTE Energy Co.		391,429
	2,584	UGI Corp.		71,034
	1,968	WGL Holdings, Inc.		70,335
				957,165
		Total Common Stocks and Other Equity Interests (Cost $20,895,570)		25,352,830
		Money Market Fund—0.2%
	40,980	Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $40,980)		40,980
		Total Investments (Cost $20,936,550)—100.2%		25,393,810
		Liabilities in excess of other assets—(0.2%)		(40,985	)
		Net Assets—100.0%	$	25,352,825

Notes to Schedule of Investments:

* Non-income producing security.

See Notes to Financial Statements.

Schedule of Investments

PowerShares Dynamic Mid Cap Value Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—22.9%
	5,061	Autoliv, Inc.*	$	277,090
	12,468	Brinker International, Inc.		230,907
	7,880	Carter's, Inc.*		253,894
	14,907	Gannett Co., Inc.		253,717
	31,453	Genuine Parts Co.		1,346,188
	8,708	Hanesbrands, Inc.*		247,917
	7,046	Jarden Corp.		226,317
	66,287	Macy's, Inc.		1,537,858
	57,726	Mattel, Inc.		1,330,584
	4,935	Polaris Industries, Inc.		292,004
	28,018	Service Corp. International		251,602
	20,029	Sherwin-Williams Co. (The)		1,563,664
	3,945	Stanley Black & Decker, Inc.		245,182
	16,403	VF Corp.		1,417,547
	5,409	Warnaco Group, Inc. (The)*		258,767
	2,683	Whirlpool Corp.		292,098
				10,025,336
		Consumer Staples—16.9%
	20,704	Clorox Co. (The)		1,339,549
	6,933	Corn Products International, Inc.		249,588
	39,980	Dr Pepper Snapple Group, Inc.		1,308,545
	3,898	Energizer Holdings, Inc.*		238,168
	31,925	Hershey Co. (The)		1,500,794
	50,938	Safeway, Inc.		1,202,137
	93,613	Sara Lee Corp.		1,331,177
	13,254	Tyson Foods, Inc., Class A		259,646
				7,429,604
		Energy—0.6%
	7,862	Alliance Holdings GP LP		253,314
		Financials—6.4%
	8,729	American Financial Group, Inc.		256,894
	5,573	Commerce Bancshares, Inc.		230,833
	8,094	HCC Insurance Holdings, Inc.		220,076
	54,691	Principal Financial Group, Inc.		1,598,071
	4,752	Reinsurance Group of America, Inc.		245,346
	4,857	Torchmark Corp.		260,044
				2,811,264
		Health Care—4.0%
	30,977	Health Management Associates, Inc., Class A*		288,705
	26,821	Humana, Inc.*		1,226,256
	5,389	Kinetic Concepts, Inc.*		233,344
				1,748,305
		Industrials—20.4%
	28,045	Dover Corp.		1,464,510
	9,810	EMCOR Group, Inc.*		280,173
	2,254	Flowserve Corp.		258,263
	7,522	Harsco Corp.		232,881

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	4,822	Hubbell, Inc., Class B	$	224,078
	24,780	ITT Corp.		1,377,025
	5,923	Oshkosh Corp.*		228,746
	21,048	Parker Hannifin Corp.		1,456,101
	4,003	Regal-Beloit Corp.		253,270
	23,469	Rockwell Automation, Inc.		1,425,038
	22,556	Rockwell Collins, Inc.		1,466,140
	6,254	Thomas & Betts Corp.*		262,293
				8,928,518
		Information Technology—12.3%
	24,509	Computer Sciences Corp.*		1,284,027
	5,876	DST Systems, Inc.		249,436
	11,211	EchoStar Corp., Class A*		215,363
	26,321	Fiserv, Inc.*		1,344,740
	4,992	Harris Corp.		256,988
	14,886	Jabil Circuit, Inc.		228,054
	6,701	Lexmark International, Inc., Class A*		248,272
	5,273	Tech Data Corp.*		226,212
	32,860	Western Digital Corp.*		1,350,217
				5,403,309
		Materials—8.7%
	6,022	Albemarle Corp.		274,965
	4,797	Ashland, Inc.		285,709
	4,180	Ball Corp.		222,418
	7,772	Cabot Corp.		252,901
	7,240	Celanese Corp., Series A		231,608
	4,319	Domtar Corp.*		305,958
	3,794	Eastman Chemical Co.		253,894
	5,363	International Flavors & Fragrances, Inc.		268,633
	2,858	Lubrizol Corp. (The)		258,192
	11,729	RPM International, Inc.		258,976
	11,053	Sealed Air Corp.		237,639
	3,955	Silgan Holdings, Inc.		238,605
	7,633	Sonoco Products Co.		252,881
	7,796	W.R. Grace & Co.*		225,226
	2,876	Walter Energy, Inc.		232,410
				3,800,015
		Utilities—7.8%
	36,198	Constellation Energy Group, Inc.		1,279,599
	8,509	DPL, Inc.		239,784
	29,237	DTE Energy Co.		1,408,346
	9,015	UGI Corp.		247,823
	6,876	WGL Holdings, Inc.		245,748
				3,421,300
		Total Common Stocks and Other Equity Interests (Cost $38,629,947)		43,820,965

See Notes to Financial Statements.

Schedule of Investments (Continued)

PowerShares Dynamic Mid Cap Value Portfolio

April 30, 2010

Number of Shares			Value
		Money Market Fund—0.1%
	43,158	Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $43,158)	$	43,158
		Total Investments (Cost $38,673,105)—100.1%		43,864,123
		Liabilities in excess of other assets—(0.1%)		(45,633	)
		Net Assets—100.0%	$	43,818,490

Notes to Schedule of Investments:

* Non-income producing security.

See Notes to Financial Statements.

Schedule of Investments

PowerShares Dynamic Small Cap Growth Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.1%
		Consumer Discretionary—17.6%
	7,496	99 Cents Only Stores*	$	116,338
	7,187	AnnTaylor Stores Corp.*		155,958
	10,607	ArvinMeritor, Inc.*		162,499
	361	Biglari Holdings, Inc.*		141,241
	17,544	Crocs, Inc.*		169,475
	5,602	Deckers Outdoor Corp.*		787,529
	5,338	Drew Industries, Inc.*		136,920
	25,005	DSW, Inc., Class A*		755,151
	3,268	Jo-Ann Stores, Inc.*		144,184
	9,809	La-Z-Boy, Inc.*		127,909
	3,548	Monro Muffler Brake, Inc.		127,231
	20,243	Pier 1 Imports, Inc.*		167,612
	11,264	RCN Corp.*		165,356
	29,309	Standard Pacific Corp.*		187,871
	2,944	Steven Madden Ltd.*		170,634
	36,737	Ulta Salon Cosmetics & Fragrance, Inc.*		849,360
	25,840	Under Armour, Inc., Class A*		872,100
	4,897	Universal Technical Institute, Inc.*		117,332
	7,663	Volcom, Inc.*		182,686
	8,625	Zumiez, Inc.*		160,080
				5,697,466
		Consumer Staples—3.1%
	2,614	Boston Beer Co., Inc., Class A*		149,024
	3,549	Diamond Foods, Inc.		151,578
	22,928	United Natural Foods, Inc.*		703,660
				1,004,262
		Energy—0.4%
	5,845	Legacy Reserves LP		139,637
		Financials—8.9%
	22,863	FBR Capital Markets Corp.*		108,142
	5,828	First Cash Financial Services, Inc.*		128,565
	6,972	Forestar Group, Inc.*		157,149
	15,476	GAMCO Investors, Inc., Class A		712,051
	52,323	Investors Bancorp, Inc.*		727,813
	34,694	LaSalle Hotel Properties REIT		914,187
	8,267	MarketAxess Holdings, Inc.		129,957
				2,877,864
		Health Care—17.6%
	37,204	Align Technology, Inc.*		631,724
	37,163	American Medical Systems Holdings, Inc.*		665,961
	7,607	Angiodynamics, Inc.*		121,712
	6,246	Bio-Reference Labs, Inc.*		146,156
	6,326	Cantel Medical Corp.		126,267
	13,681	Dexcom, Inc.*		149,807
	9,860	Dionex Corp.*		804,280
	19,116	Exelixis, Inc.*		110,490
	34,836	Immucor, Inc.*		745,839

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	16,920	Integra LifeSciences Holdings Corp.*	$	768,676
	4,109	LHC Group, Inc.*		140,117
	3,002	MWI Veterinary Supply, Inc.*		125,934
	5,104	Neogen Corp.*		134,184
	4,942	Par Pharmaceutical Cos., Inc.*		134,126
	33,419	PAREXEL International Corp.*		788,020
	4,442	RehabCare Group, Inc.*		126,686
				5,719,979
		Industrials—12.4%
	3,894	Advisory Board Co. (The)*		128,229
	28,223	DigitalGlobe, Inc.*		749,603
	6,534	Harbin Electric, Inc.*		143,160
	17,665	HEICO Corp.		760,831
	4,411	II-VI, Inc.*		158,178
	5,036	Insituform Technologies, Inc., Class A*		120,713
	14,382	Interface, Inc., Class A		188,117
	20,720	Kaydon Corp.		862,574
	4,221	Raven Industries, Inc.		128,150
	4,906	Stanley, Inc.*		155,177
	28,282	Sykes Enterprises, Inc.*		642,850
				4,037,582
		Information Technology—36.1%
	7,420	Acme Packet, Inc.*		193,959
	39,940	Acxiom Corp.*		762,055
	28,926	Blackbaud, Inc.		666,744
	7,784	Bottomline Technologies, Inc.*		135,442
	14,316	Brooks Automation, Inc.*		139,151
	3,494	Cabot Microelectronics Corp.*		134,030
	17,323	Cirrus Logic, Inc.*		220,175
	3,890	Coherent, Inc.*		146,147
	16,084	Deltek, Inc.*		126,581
	6,307	Diodes, Inc.*		135,411
	37,163	Euronet Worldwide, Inc.*		592,007
	7,191	ExlService Holdings, Inc.*		114,481
	16,133	Hittite Microwave Corp.*		827,300
	26,253	InterDigital, Inc.*		726,420
	16,737	Isilon Systems, Inc.*		217,246
	111,860	Lawson Software, Inc.*		868,034
	39,770	LTX-Credence Corp.*		134,820
	4,895	Manhattan Associates, Inc.*		140,291
	7,593	MicroStrategy, Inc., Class A*		581,624
	5,674	Multi-Fineline Electronix, Inc.*		147,070
	4,879	NETGEAR, Inc.*		132,026
	8,478	Netscout Systems, Inc.*		123,101
	8,011	Oplink Communications, Inc.*		121,046
	4,551	Park Electrochemical Corp.		137,486
	23,686	Plantronics, Inc.		786,375
	3,439	Power Integrations, Inc.		132,333
	11,073	Radiant Systems, Inc.*		155,797
	159,952	RF Micro Devices, Inc.*		898,930

See Notes to Financial Statements.

Schedule of Investments (Continued)

PowerShares Dynamic Small Cap Growth Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	7,949	RightNow Technologies, Inc.*	$	130,364
	35,800	Solarwinds, Inc.*		664,448
	15,441	SonicWALL, Inc.*		156,417
	58,068	Sonus Networks, Inc.*		150,396
	8,240	Super Micro Computer, Inc.*		116,843
	7,105	Synchronoss Technologies, Inc.*		145,155
	19,864	Syntel, Inc.		717,488
	17,203	TriQuint Semiconductor, Inc.*		129,711
				11,706,904
		Materials—2.3%
	4,862	AMCOL International Corp.		139,734
	5,645	Balchem Corp.		146,431
	26,039	Boise, Inc.*		179,409
	10,897	Stillwater Mining Co.*		184,159
	5,599	Zep, Inc.		103,246
				752,979
		Telecommunication Services—1.7%
	11,017	AboveNet, Inc.*		556,799
		Total Common Stocks and Other Equity Interests (Cost $28,430,563)		32,493,472
		Money Market Fund—0.1%
	30,060	Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $30,060)		30,060
		Total Investments (Cost $28,460,623)—100.2%		32,523,532
		Liabilities in excess of other assets—(0.2%)		(51,030	)
		Net Assets—100.0%	$	32,472,502

Investment Abbreviations:

REIT – Real Estate Investment Trust

Notes to Schedule of Investments:

* Non-income producing security.

See Notes to Financial Statements.

Schedule of Investments

PowerShares Dynamic Small Cap Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks—100.0%
		Consumer Discretionary—30.7%
	1,876	American Greetings Corp., Class A	$	46,075
	3,067	ArvinMeritor, Inc.*		46,986
	3,075	Asbury Automotive Group, Inc.*		47,816
	2,341	Big 5 Sporting Goods Corp.		39,680
	104	Biglari Holdings, Inc.*		40,690
	1,254	Bob Evans Farms, Inc.		38,786
	2,586	Brown Shoe Co., Inc.		48,617
	1,020	CEC Entertainment, Inc.*		39,831
	8,233	Cheesecake Factory, Inc. (The)*		223,691
	936	Children's Place Retail Stores, Inc. (The)*		42,887
	8,616	Collective Brands, Inc.*		202,045
	4,248	Columbia Sportswear Co.		235,934
	2,040	Cooper Tire & Rubber Co.		43,289
	818	Cracker Barrel Old Country Store, Inc.		40,385
	4,936	Crocs, Inc.*		47,682
	17,127	Dana Holding Corp.*		228,817
	1,620	Deckers Outdoor Corp.*		227,740
	11,542	Dillard's, Inc., Class A		324,099
	7,832	Dress Barn, Inc. (The)*		216,790
	1,543	Drew Industries, Inc.*		39,578
	7,231	DSW, Inc., Class A*		218,376
	4,694	E.W. Scripps Co., Class A*		51,352
	3,516	Entercom Communications Corp., Class A*		51,193
	1,495	Genesco, Inc.*		49,769
	4,476	Gymboree Corp.*		219,906
	1,480	Helen of Troy Ltd.*		39,975
	9,712	Hillenbrand, Inc.		238,721
	8,990	HSN, Inc.*		270,869
	944	Jo-Ann Stores, Inc.*		41,649
	11,550	Jones Apparel Group, Inc.		251,328
	2,160	Kirkland's, Inc.*		48,103
	2,836	La-Z-Boy, Inc.*		36,981
	2,078	Maidenform Brands, Inc.*		47,420
	7,419	McClatchy Co. (The), Class A*		40,434
	9,116	Men's Wearhouse, Inc. (The)		215,411
	3,804	Modine Manufacturing Co.*		53,294
	5,855	Pier 1 Imports, Inc.*		48,479
	2,535	RC2 Corp.*		46,568
	3,258	RCN Corp.*		47,827
	8,755	Rent-A-Center, Inc.*		226,054
	4,002	Retail Ventures, Inc.*		43,302
	6,624	Scholastic Corp.		178,914
	4,645	Select Comfort Corp.*		52,581
	6,337	Skechers U.S.A., Inc., Class A*		243,024
	3,473	Sonic Automotive, Inc., Class A*		37,092
	2,688	Stage Stores, Inc.		40,992
	8,476	Standard Pacific Corp.*		54,331
	4,378	Stein Mart, Inc.*		41,503
	852	Steven Madden Ltd.*		49,382
	1,933	Timberland Co. (The), Class A*		41,559
	10,623	Ulta Salon Cosmetics & Fragrance, Inc.*		245,604

Number of Shares			Value
		Common Stocks (Continued)
	680	UniFirst Corp.	$	33,232
	1,415	Universal Technical Institute, Inc.*		33,903
	1,395	Valassis Communications, Inc.*		45,603
	7,062	Wolverine World Wide, Inc.		216,168
				5,822,317
		Consumer Staples—4.5%
	756	Boston Beer Co., Inc., Class A*		43,100
	2,456	Chiquita Brands International, Inc.*		36,938
	4,437	Darling International, Inc.*		42,107
	1,026	Diamond Foods, Inc.		43,821
	1,986	Elizabeth Arden, Inc.*		36,165
	2,635	Inter Parfums, Inc.		45,533
	4,453	Prestige Brands Holdings, Inc.*		43,372
	2,385	Revlon, Inc., Class A*		41,785
	6,645	Ruddick Corp.		234,834
	6,629	United Natural Foods, Inc.*		203,444
	1,291	USANA Health Sciences, Inc.*		46,799
	1,143	WD-40 Co.		40,268
				858,166
		Energy—4.4%
	7,266	Berry Petroleum Co., Class A		235,200
	5,378	Bristow Group, Inc.*		208,182
	3,553	Energy Partners Ltd.*		48,570
	3,929	Gulfport Energy Corp.*		49,113
	2,097	Stone Energy Corp.*		34,181
	3,549	TETRA Technologies, Inc.*		43,617
	7,370	World Fuel Services Corp.		209,529
				828,392
		Financials—9.3%
	4,064	American Equity Investment Life Holding Co.		42,753
	2,077	AMERISAFE, Inc.*		35,517
	2,525	AmTrust Financial Services, Inc.		34,416
	2,681	Calamos Asset Management, Inc., Class A		33,378
	5,081	Cash America International, Inc.		188,302
	2,946	Dime Community Bancshares		37,562
	1,812	EZCORP, Inc., Class A*		37,527
	1,685	First Cash Financial Services, Inc.*		37,171
	3,719	First Financial Bankshares, Inc.		198,892
	4,475	GAMCO Investors, Inc., Class A		205,895
	9,184	International Bancshares Corp.		221,977
	15,130	Investors Bancorp, Inc.*		210,458
	2,391	MarketAxess Holdings, Inc.		37,587
	5,051	Meadowbrook Insurance Group, Inc.		39,903
	2,274	Nelnet, Inc., Class A		45,389
	12,835	OneBeacon Insurance Group Ltd., Class A		208,184
	962	Safety Insurance Group, Inc.		35,873
	2,206	Selective Insurance Group, Inc.		36,862
	5,911	TrustCo Bank Corp. NY		39,308
	855	World Acceptance Corp.*		30,164
				1,757,118

See Notes to Financial Statements.

Schedule of Investments (Continued)

PowerShares Dynamic Small Cap Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks (Continued)
		Health Care—7.5%
	1,732	AmSurg Corp., Class A*	$	35,887
	1,806	Bio-Reference Labs, Inc.*		42,260
	1,829	Cantel Medical Corp.		36,507
	3,636	Chemed Corp.		200,016
	5,529	Exelixis, Inc.*		31,958
	1,290	Gentiva Health Services, Inc.*		36,997
	1,943	Healthspring, Inc.*		34,197
	10,074	Immucor, Inc.*		215,684
	4,893	Integra LifeSciences Holdings Corp.*		222,289
	1,311	Invacare Corp.		34,650
	4,646	Magellan Health Services, Inc.*		196,108
	8,655	Medicis Pharmaceutical Corp., Class A		219,664
	869	MWI Veterinary Supply, Inc.*		36,455
	2,041	Odyssey HealthCare, Inc.*		42,514
	1,430	Par Pharmaceutical Cos., Inc.*		38,810
				1,423,996
		Industrials—13.4%
	4,299	A.O. Smith Corp.		221,957
	686	Allegiant Travel Co.*		35,281
	682	Amerco, Inc.*		42,591
	2,503	Apogee Enterprises, Inc.		34,391
	1,595	ATC Technology Corp.*		32,602
	3,051	Comfort Systems USA, Inc.		42,958
	802	Consolidated Graphics, Inc.*		33,612
	1,918	Cornell Cos., Inc.*		52,745
	1,992	Deluxe Corp.		41,772
	1,191	Dollar Thrifty Automotive Group, Inc.*		52,392
	1,570	EnerSys*		40,632
	2,328	Ennis, Inc.		43,045
	3,063	Gibraltar Industries, Inc.*		46,006
	4,596	Hawaiian Holdings, Inc.*		32,632
	8,193	HNI Corp.		254,311
	1,275	II-VI, Inc.*		45,722
	2,187	John Bean Technologies Corp.		40,175
	1,493	Kaman Corp.		40,923
	5,992	Kaydon Corp.		249,447
	1,297	Layne Christensen Co.*		35,512
	1,105	M&F Worldwide Corp.*		33,879
	1,220	Raven Industries, Inc.		37,039
	1,419	Stanley, Inc.*		44,883
	1,501	Sykes Enterprises, Inc.*		34,118
	1,962	TAL International Group, Inc.		50,992
	5,170	Teledyne Technologies, Inc.*		225,412
	4,423	Toro Co. (The)		251,846
	3,409	United Stationers, Inc.*		208,699
	6,678	Watts Water Technologies, Inc., Class A		236,935
				2,542,509
		Information Technology—21.5%
	11,550	Acxiom Corp.*		220,374
	32,345	Amkor Technology, Inc.*		243,881

Number of Shares			Value
		Common Stocks (Continued)
	9,834	Benchmark Electronics, Inc.*	$	212,808
	1,236	Black Box Corp.		38,551
	1,537	Blackbaud, Inc.		35,428
	2,251	Bottomline Technologies, Inc.*		39,167
	5,016	Brightpoint, Inc.*		40,579
	1,011	Cabot Microelectronics Corp.*		38,782
	1,777	CSG Systems International, Inc.*		40,373
	1,143	Cymer, Inc.*		39,033
	4,289	EarthLink, Inc.		38,687
	4,173	Epicor Software Corp.*		38,308
	1,973	Euronet Worldwide, Inc.*		31,430
	18,869	Fairchild Semiconductor International, Inc.*		211,710
	4,774	Global Cash Access Holdings, Inc.*		41,438
	4,666	Hittite Microwave Corp.*		239,272
	3,888	Imation Corp.*		42,146
	2,797	Insight Enterprises, Inc.*		42,039
	7,592	InterDigital, Inc.*		210,071
	4,840	Isilon Systems, Inc.*		62,823
	5,436	Kulicke & Soffa Industries, Inc.*		44,575
	1,005	Littelfuse, Inc.*		42,441
	620	MAXIMUS, Inc.		38,384
	3,631	Micrel, Inc.		42,374
	2,196	MicroStrategy, Inc., Class A*		168,214
	3,612	ModusLink Global Solutions, Inc.*		32,255
	1,641	Multi-Fineline Electronix, Inc.*		42,535
	2,316	Oplink Communications, Inc.*		34,995
	1,316	Park Electrochemical Corp.		39,756
	6,849	Plantronics, Inc.		227,387
	995	Power Integrations, Inc.		38,288
	6,950	Progress Software Corp.*		224,138
	3,202	Radiant Systems, Inc.*		45,052
	8,496	RF Micro Devices, Inc.*		47,748
	11,772	Sanmina-SCI Corp.*		209,895
	5,588	SMART Modular Technologies (WWH), Inc.*		39,228
	16,791	Sonus Networks, Inc.*		43,489
	2,384	Super Micro Computer, Inc.*		33,805
	1,250	SYNNEX Corp.*		34,275
	5,745	Syntel, Inc.		207,509
	11,134	TeleTech Holdings, Inc.*		184,268
	5,578	Unisys Corp.*		156,296
	18,998	Vishay Intertechnology, Inc.*		197,769
				4,081,576
		Materials—5.1%
	1,406	AMCOL International Corp.		40,408
	1,632	Balchem Corp.		42,334
	7,529	Boise, Inc.*		51,875
	3,237	Buckeye Technologies, Inc.*		45,706
	742	Clearwater Paper Corp.*		47,251
	55,955	Graphic Packaging Holding Co.*		206,474
	1,703	H.B. Fuller Co.		39,935
	1,540	Innophos Holdings, Inc.		43,875

See Notes to Financial Statements.

Schedule of Investments (Continued)

PowerShares Dynamic Small Cap Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks (Continued)
	3,905	KapStone Paper and Packaging Corp.*	$	50,374
	1,286	Koppers Holdings, Inc.		36,227
	2,186	NewMarket Corp.		240,460
	4,499	PolyOne Corp.*		50,884
	4,228	Wausau Paper Corp.*		37,418
	1,619	Zep, Inc.		29,854
				963,075
		Telecommunication Services—1.1%
	3,186	AboveNet, Inc.*		161,020
	816	Atlantic Tele-Network, Inc.		45,027
				206,047
		Utilities—2.5%
	1,090	Laclede Group, Inc. (The)		37,147
	6,813	Southwest Gas Corp.		211,884
	6,681	Unisource Energy Corp.		222,611
				471,642
		Total Common Stocks (Cost $16,183,409)		18,954,838
		Money Market Fund—0.2%
	44,172	Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $44,172)		44,172
		Total Investments (Cost $16,227,581)—100.2%		18,999,010
		Liabilities in excess of other assets—(0.2%)		(38,935	)
		Net Assets—100.0%	$	18,960,075

Notes to Schedule of Investments:

* Non-income producing security.

See Notes to Financial Statements.

Schedule of Investments

PowerShares Dynamic Small Cap Value Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks—100.0%
		Consumer Discretionary—34.3%
	14,337	American Greetings Corp., Class A	$	352,117
	23,512	Asbury Automotive Group, Inc.*		365,612
	9,589	Bob Evans Farms, Inc.		296,588
	7,800	CEC Entertainment, Inc.*		304,590
	7,157	Children's Place Retail Stores, Inc. (The)*		327,934
	65,868	Collective Brands, Inc.*		1,544,605
	32,474	Columbia Sportswear Co.		1,803,606
	15,590	Cooper Tire & Rubber Co.		330,820
	6,261	Cracker Barrel Old Country Store, Inc.		309,105
	88,244	Dillard's, Inc., Class A		2,477,891
	35,883	E.W. Scripps Co., Class A*		392,560
	26,887	Entercom Communications Corp., Class A*		391,475
	11,428	Genesco, Inc.*		380,438
	34,224	Gymboree Corp.*		1,681,425
	11,313	Helen of Troy Ltd.*		305,564
	74,248	Hillenbrand, Inc.		1,825,016
	55,735	International Speedway Corp., Class A		1,703,261
	88,295	Jones Apparel Group, Inc.		1,921,299
	16,509	Kirkland's, Inc.*		367,655
	56,729	McClatchy Co. (The), Class A*		309,173
	12,802	Men's Wearhouse, Inc. (The)		302,511
	19,376	RC2 Corp.*		355,937
	66,937	Rent-A-Center, Inc.*		1,728,313
	30,583	Retail Ventures, Inc.*		330,908
	48,442	Skechers U.S.A., Inc., Class A*		1,857,751
	26,545	Sonic Automotive, Inc., Class A*		283,501
	33,466	Stein Mart, Inc.*		317,258
	5,203	UniFirst Corp.		254,271
	10,671	Valassis Communications, Inc.*		348,835
	53,995	Wolverine World Wide, Inc.		1,652,787
				24,822,806
		Consumer Staples—4.2%
	18,781	Chiquita Brands International, Inc.*		282,466
	33,926	Darling International, Inc.*		321,958
	34,049	Prestige Brands Holdings, Inc.*		331,638
	50,806	Ruddick Corp.		1,795,484
	8,731	WD-40 Co.		307,593
				3,039,139
		Energy—8.2%
	55,548	Berry Petroleum Co., Class A		1,798,089
	41,111	Bristow Group, Inc.*		1,591,407
	27,153	Energy Partners Ltd.*		371,181
	16,036	Stone Energy Corp.*		261,387
	27,124	TETRA Technologies, Inc.*		333,354
	56,347	World Fuel Services Corp.		1,601,945
				5,957,363
		Financials—12.4%
	38,837	Cash America International, Inc.		1,439,299
	54,905	Conseco, Inc.*		323,939
	22,524	Dime Community Bancshares		287,181

Number of Shares			Value
		Common Stocks (Continued)
	28,436	First Financial Bankshares, Inc.	$	1,520,757
	70,221	International Bancshares Corp.		1,697,242
	38,618	Meadowbrook Insurance Group, Inc.		305,082
	23,797	National Financial Partners Corp.*		366,236
	17,395	Nelnet, Inc., Class A		347,204
	98,132	OneBeacon Insurance Group Ltd., Class A		1,591,701
	7,364	Safety Insurance Group, Inc.		274,604
	16,869	Selective Insurance Group, Inc.		281,881
	45,195	TrustCo Bank Corp. NY		300,547
	6,543	World Acceptance Corp.*		230,837
				8,966,510
		Health Care—3.2%
	13,232	AmSurg Corp., Class A*		274,167
	5,103	Chemed Corp.		280,716
	14,851	Healthspring, Inc.*		261,377
	35,513	Magellan Health Services, Inc.*		1,499,004
				2,315,264
		Industrials—12.1%
	32,860	A.O. Smith Corp.		1,696,562
	19,135	Apogee Enterprises, Inc.		262,915
	12,202	ATC Technology Corp.*		249,409
	23,332	Comfort Systems USA, Inc.		328,515
	14,669	Cornell Cos., Inc.*		403,397
	15,231	Deluxe Corp.		319,394
	11,998	EnerSys*		310,508
	17,791	Ennis, Inc.		328,956
	35,143	Hawaiian Holdings, Inc.*		249,515
	11,418	Kaman Corp.		312,967
	8,442	M&F Worldwide Corp.*		258,832
	15,000	TAL International Group, Inc.		389,850
	39,517	Teledyne Technologies, Inc.*		1,722,941
	26,067	United Stationers, Inc.*		1,595,822
	9,375	Watts Water Technologies, Inc., Class A		332,625
				8,762,208
		Information Technology—12.3%
	45,421	Amkor Technology, Inc.*		342,474
	38,349	Brightpoint, Inc.*		310,243
	13,591	CSG Systems International, Inc.*		308,787
	8,731	Cymer, Inc.*		298,164
	32,784	EarthLink, Inc.		295,712
	31,905	Epicor Software Corp.*		292,888
	144,251	Fairchild Semiconductor International, Inc.*		1,618,496
	36,507	Global Cash Access Holdings, Inc.*		316,881
	27,617	ModusLink Global Solutions, Inc.*		246,620
	43,164	Plexus Corp.*		1,599,226
	42,723	SMART Modular Technologies (WWH), Inc.*		299,915
	9,549	SYNNEX Corp.*		261,834
	42,644	Unisys Corp.*		1,194,885
	145,236	Vishay Intertechnology, Inc.*		1,511,907
				8,898,032

See Notes to Financial Statements.

Schedule of Investments (Continued)

PowerShares Dynamic Small Cap Value Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks (Continued)
		Materials—8.3%
	24,743	Buckeye Technologies, Inc.*	$	349,371
	5,667	Clearwater Paper Corp.*		360,875
	427,776	Graphic Packaging Holding Co.*		1,578,493
	13,029	H.B. Fuller Co.		305,530
	11,774	Innophos Holdings, Inc.		335,441
	29,851	KapStone Paper and Packaging Corp.*		385,078
	9,837	Koppers Holdings, Inc.		277,108
	34,393	PolyOne Corp.*		388,985
	56,347	Sensient Technologies Corp.		1,776,621
	32,321	Wausau Paper Corp.*		286,041
				6,043,543
		Utilities—5.0%
	8,339	Laclede Group, Inc. (The)		284,193
	52,087	Southwest Gas Corp.		1,619,906
	51,088	Unisource Energy Corp.		1,702,252
				3,606,351
		Total Common Stocks (Cost $62,737,441)		72,411,216
		Money Market Fund—0.1%
	100,171	Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $100,171)		100,171
		Total Investments (Cost $62,837,612)—100.1%		72,511,387
		Liabilities in excess of other assets—(0.1%)		(58,283	)
		Net Assets—100.0%	$	72,453,104

Notes to Schedule of Investments:

* Non-income producing security.

See Notes to Financial Statements.

Schedule of Investments

PowerShares FTSE NASDAQ Small Cap Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks and Other Equity Interests—99.7%
		Consumer Discretionary—12.7%
	72	AFC Enterprises, Inc.*	$	786
	65	Airmedia Group, Inc. ADR (China)*		417
	71	Ambassadors Group, Inc.		862
	68	American Public Education, Inc.*		2,880
	45	America's Car-Mart, Inc.*		1,140
	50	Ascent Media Corp., Class A*		1,476
	78	Audiovox Corp., Class A*		726
	320	Ballard Power Systems, Inc. (Canada)*		752
	132	Bebe Stores, Inc.		1,088
	82	Big 5 Sporting Goods Corp.		1,390
	100	BJ's Restaurants, Inc.*		2,413
	41	Blue Nile, Inc.*		2,214
	50	Buffalo Wild Wings, Inc.*		2,067
	92	California Pizza Kitchen, Inc.*		1,886
	25	Cavco Industries, Inc.*		979
	439	Charming Shoppes, Inc.*		2,480
	33	Cherokee, Inc.		675
	20	China Auto Logistics, Inc.*		81
	31	China Automotive Systems, Inc.*		689
	46	China XD Plastics Co. Ltd.*		314
	169	ChinaCast Education Corp.*		1,137
	15	Churchill Downs, Inc.		575
	42	Citi Trends, Inc.*		1,409
	266	CKX, Inc.*		1,564
	263	Coldwater Creek, Inc.*		1,862
	64	Conn's, Inc.*		610
	29	Core-Mark Holding Co., Inc.*		885
	327	Crocs, Inc.*		3,159
	56	Crown Media Holdings, Inc., Class A*		101
	47	Deer Consumer Products, Inc.*		485
	366	Denny's Corp.*		1,219
	51	Dorman Products, Inc.*		1,293
	302	drugstore.com, Inc.*		1,105
	70	Exceed Co. Ltd. (British Virgin Islands)*		622
	286	Exide Technologies*		1,699
	200	Finish Line, Inc. (The), Class A		3,222
	25	Fisher Communications, Inc.*		376
	151	Fred's, Inc., Class A		2,097
	50	Fuel Systems Solutions, Inc.*		1,574
	79	Fuqi International, Inc.*		830
	50	Gaiam, Inc., Class A		453
	71	G-III Apparel Group Ltd.*		2,031
	68	Global Sources Ltd. (Bermuda)*		498
	52	Global Traffic Network, Inc.*		316
	85	Helen of Troy Ltd.*		2,296
	108	Hibbett Sports, Inc.*		2,970
	91	Home Inns & Hotels Management, Inc. ADR (China)*		3,171
	168	Hot Topic, Inc.		1,284
	213	HSN, Inc.*		6,418

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	240	Imax Corp. (Canada)*	$	4,536
	214	Interval Leisure Group, Inc.*		3,165
	19	iRobot Corp.*		383
	61	Isle of Capri Casinos, Inc.*		664
	106	JAKKS Pacific, Inc.*		1,621
	67	Jos. A. Bank Clothiers, Inc.*		4,078
	56	Kirkland's, Inc.*		1,247
	136	Knology, Inc.*		1,786
	103	K-Swiss, Inc., Class A*		1,281
	39	Learning Tree International, Inc.*		617
	77	Lincoln Educational Services Corp.*		1,922
	154	Mediacom Communications Corp., Class A*		1,019
	503	Melco Crown Entertainment Ltd. ADR (Macau)*		2,394
	46	Monarch Casino & Resort, Inc.*		535
	75	Monro Muffler Brake, Inc.		2,689
	112	Morgans Hotel Group Co.*		949
	160	National CineMedia, Inc.		3,046
	199	NET Servicos de Comunicacao SA ADR (Brazil)*		2,338
	49	Outdoor Channel Holdings, Inc.*		339
	65	Overstock.com, Inc.*		1,203
	250	Pacific Sunwear of California, Inc.*		1,265
	49	Peet's Coffee & Tea, Inc.*		1,941
	65	PetMed Express, Inc.		1,439
	96	Princeton Review, Inc.*		300
	81	RC2 Corp.*		1,488
	136	RCN Corp.*		1,996
	44	Red Robin Gourmet Burgers, Inc.*		1,074
	19	RRsat Global Communications Network Ltd. (Israel)		209
	69	Rue21, Inc.*		2,180
	205	Select Comfort Corp.*		2,321
	37	Shoe Carnival, Inc.*		1,023
	204	Shuffle Master, Inc.*		1,958
	49	Shutterfly, Inc.*		1,153
	226	Smith & Wesson Holding Corp.*		1,006
	248	Sonic Corp.*		2,904
	124	Spartan Motors, Inc.		765
	122	Stein Mart, Inc.*		1,157
	55	Steiner Leisure Ltd.*		2,578
	68	Steven Madden Ltd.*		3,941
	340	Stewart Enterprises, Inc., Class A		2,305
	57	SuperMedia, Inc.*		2,559
	28	Syms Corp.*		255
	201	Texas Roadhouse, Inc.*		2,971
	72	True Religion Apparel, Inc.*		2,250
	52	Universal Electronics, Inc.*		1,103
	97	VisionChina Media, Inc. ADR (China)*		416
	69	Volcom, Inc.*		1,645
	12	Wacoal Holdings Corp. ADR (Japan)*		753

See Notes to Financial Statements.

Schedule of Investments (Continued)

PowerShares FTSE NASDAQ Small Cap Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	63	West Marine, Inc.*	$	754
	146	Westport Innovations, Inc. (Canada)*		2,774
	369	Wet Seal, Inc. (The), Class A*		1,745
	43	Weyco Group, Inc.		1,051
	94	Wonder Auto Technology, Inc.*		1,088
	85	Zumiez, Inc.*		1,578
				160,333
		Consumer Staples—3.5%
	20	Alico, Inc.		534
	69	Andersons, Inc. (The)		2,494
	9	Arden Group, Inc., Class A		913
	55	Calavo Growers, Inc.		954
	60	Cal-Maine Foods, Inc.		2,003
	65	Central Garden & Pet Co.*		730
	174	Central Garden & Pet Co., Class A*		1,797
	47	China Sky One Medical, Inc.*		666
	42	China-Biotics, Inc.*		748
	20	Coca-Cola Bottling Co. Consolidated		1,102
	187	Cresud S.A.C.I.F.y A. ADR (Argentina)		2,624
	83	Diamond Foods, Inc.		3,545
	110	Elizabeth Arden, Inc.*		2,003
	30	Farmer Bros. Co.		561
	78	Female Health Co. (The)		498
	7	Griffin Land & Nurseries, Inc.		205
	46	Imperial Sugar Co.		737
	46	Inter Parfums, Inc.		795
	52	J & J Snack Foods Corp.		2,423
	19	Lifeway Foods, Inc.*		209
	48	Nash Finch Co.		1,681
	52	National Beverage Corp.		603
	35	Origin Agritech Ltd. (British Virgin Islands)*		307
	65	Pantry, Inc. (The)*		1,028
	112	PriceSmart, Inc.		2,786
	238	Smart Balance, Inc.*		1,583
	85	Spartan Stores, Inc.		1,283
	246	SunOpta, Inc. (Canada)*		1,114
	32	Susser Holdings Corp.*		345
	44	USANA Health Sciences, Inc.*		1,595
	20	Village Super Market, Inc., Class A		538
	62	WD-40 Co.		2,184
	207	Winn-Dixie Stores, Inc.*		2,610
	98	Zhongpin, Inc.*		1,243
				44,441
		Energy—4.8%
	128	Acergy SA ADR (Luxembourg)		2,446
	59	Approach Resources, Inc.*		528
	144	ATP Oil & Gas Corp.*		2,629
	441	Brigham Exploration Co.*		8,604
	52	Bronco Drilling Co., Inc.*		249
	49	China Integrated Energy, Inc.*		577

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	23	Clayton Williams Energy, Inc.*	$	1,069
	113	Clean Energy Fuels Corp.*		1,991
	132	Crosstex Energy, Inc.*		1,192
	29	Dawson Geophysical Co.*		849
	791	Delta Petroleum Corp.*		1,218
	193	Energy XXI Bermuda Ltd. (Bermuda)*		3,379
	162	Fx Energy, Inc.*		698
	55	Georesources, Inc.*		944
	325	Global Industries Ltd.*		2,177
	38	Green Plains Renewable Energy, Inc.*		522
	54	Gulf Island Fabrication, Inc.		1,294
	121	Gulfport Energy Corp.*		1,513
	437	Hercules Offshore, Inc.*		1,731
	798	Ivanhoe Energy, Inc. (Canada)*		2,522
	104	James River Coal Co.*		1,957
	65	Knightsbridge Tankers Ltd. (Bermuda)		1,231
	99	Matrix Service Co.*		1,052
	17	OYO Geospace Corp.*		845
	73	Petroleum Development Corp.*		1,709
	47	PHI, Inc.*		977
	146	Ram Energy Resources, Inc.*		273
	121	Rex Energy Corp.*		1,609
	199	Rosetta Resources, Inc.*		4,955
	45	Seahawk Drilling, Inc.*		750
	63	StealthGas, Inc. (Greece)*		341
	88	Superior Well Services, Inc.*		1,276
	49	T-3 Energy Services, Inc.*		1,458
	142	Tesco Corp. (Canada)*		1,776
	70	Toreador Resources Corp.*		635
	249	Transglobe Energy Corp. (Canada)*		1,863
	44	Union Drilling, Inc.*		292
	269	Warren Resources, Inc.*		963
				60,094
		Financials—15.6%
	69	1st Source Corp.		1,320
	83	Abington Bancorp, Inc.		789
	90	Altisource Portfolio Solutions SA (Luxembourg)*		2,174
	92	American Capital Agency Corp. REIT		2,531
	39	American Physicians Capital, Inc.		1,304
	26	American Physicians Service Group, Inc.		608
	52	Ameris Bancorp		579
	71	AMERISAFE, Inc.*		1,214
	42	Arrow Financial Corp.		1,168
	59	Asset Acceptance Capital Corp.*		434
	32	Avatar Holdings, Inc.*		763
	34	Baldwin & Lyons, Inc., Class B		853
	23	BancFirst Corp.		1,015
	17	Bancorp Rhode Island, Inc.		487
	89	Bank Mutual Corp.		634

See Notes to Financial Statements.

Schedule of Investments (Continued)

PowerShares FTSE NASDAQ Small Cap Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	48	Bank of The Ozarks, Inc.	$	1,847
	82	BankFinancial Corp.		792
	53	Berkshire Hills Bancorp, Inc.		1,113
	146	BGC Partners, Inc., Class A		952
	261	Boston Private Financial Holdings, Inc.		2,070
	225	Brookline Bancorp, Inc.		2,473
	29	Camden National Corp.		1,036
	48	Capital City Bank Group, Inc.		844
	109	Cardinal Financial Corp.		1,194
	114	Cardtronics, Inc.*		1,589
	299	Cathay General Bancorp		3,699
	91	Chemical Financial Corp.		2,157
	1,502	Citizens Republic Bancorp, Inc.*		1,877
	60	City Holding Co.		2,102
	51	Clifton Savings Bancorp, Inc.		501
	51	CNinsure, Inc. ADR (Cayman Islands)		1,415
	140	CoBiz Financial, Inc.		1,000
	107	Columbia Banking System, Inc.		2,405
	57	Community Trust Bancorp, Inc.		1,711
	91	CompuCredit Holdings Corp.		545
	34	Credit Acceptance Corp.*		1,533
	83	Danvers Bancorp, Inc.		1,357
	10	Diamond Hill Investment Group, Inc.		780
	131	Dime Community Bancshares		1,670
	92	Dollar Financial Corp.*		2,154
	57	Donegal Group, Inc., Class A		822
	89	eHealth, Inc.*		1,220
	10	EMC Insurance Group, Inc.		243
	89	Encore Capital Group, Inc.*		2,048
	55	Enterprise Financial Services Corp.		578
	42	Epoch Holding Corp.		543
	170	EZCORP, Inc., Class A*		3,521
	122	FBR Capital Markets Corp.*		577
	63	First Bancorp		1,028
	253	First Busey Corp.		1,278
	113	First Cash Financial Services, Inc.*		2,493
	67	First Community Bancshares, Inc.		1,116
	215	First Financial Bancorp		4,109
	38	First Financial Corp.		1,108
	63	First Financial Holdings, Inc.		890
	74	First Financial Northwest, Inc.		477
	81	First Merchants Corp.		708
	275	First Midwest Bancorp, Inc.		4,180
	37	First South Bancorp, Inc.		516
	108	FirstService Corp. (Canada)*		2,578
	118	Flushing Financial Corp.		1,606
	26	Fox Chase Bancorp, Inc.*		292
	39	FPIC Insurance Group, Inc.*		1,062
	225	GFI Group, Inc.		1,552
	38	Great Southern Bancorp, Inc.		927

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	111	Greenlight Capital Re Ltd., Class A (Cayman Islands)*	$	2,844
	76	Hallmark Financial Services, Inc.*		890
	62	Heartland Financial USA, Inc.		1,185
	33	Home Bancorp, Inc.*		458
	73	Home BancShares, Inc.		2,053
	32	Home Federal Bancorp, Inc.		510
	61	Hudson Valley Holding Corp.		1,531
	79	Independent Bank Corp.		2,049
	51	Infinity Property & Casualty Corp.		2,353
	67	International Assets Holding Corp.*		1,083
	13	Kansas City Life Insurance Co.		442
	20	K-Fed Bancorp		200
	90	Lakeland Bancorp, Inc.		945
	60	Lakeland Financial Corp.		1,252
	33	Legacy Bancorp, Inc.		309
	28	Life Partners Holdings, Inc.		647
	268	Maiden Holdings Ltd. (Bermuda)		2,007
	77	MainSource Financial Group, Inc.		623
	121	MarketAxess Holdings, Inc.		1,902
	67	Medallion Financial Corp.		536
	42	Meridian Interstate Bancorp, Inc.*		484
	83	Mission West Properties, Inc. REIT		601
	144	Nara Bancorp, Inc.*		1,296
	12	NASB Financial, Inc.		297
	22	National Interstate Corp.		460
	13	National Western Life Insurance Co., Class A		2,485
	187	NewStar Financial, Inc.*		1,432
	168	Northfield Bancorp, Inc.		2,480
	51	OceanFirst Financial Corp.		656
	52	Old Second Bancorp, Inc.		297
	62	Oritani Financial Corp.		1,029
	70	Pacific Continental Corp.		811
	72	Penson Worldwide, Inc.*		677
	40	Peoples Bancorp, Inc.		694
	64	Pico Holdings, Inc.*		2,275
	127	Pinnacle Financial Partners, Inc.*		1,941
	92	PMA Capital Corp., Class A*		632
	84	Presidential Life Corp.		990
	149	Provident New York Bancorp		1,530
	80	Renasant Corp.		1,322
	70	Republic Bancorp, Inc., Class A		1,690
	37	Rockville Financial, Inc.		446
	118	Roma Financial Corp.		1,381
	105	S&T Bancorp, Inc.		2,525
	52	S.Y. Bancorp, Inc.		1,234
	57	Safety Insurance Group, Inc.		2,126
	81	Sanders Morris Harris Group, Inc.		484
	90	Sandy Spring Bancorp, Inc.		1,570
	48	SCBT Financial Corp.		1,910
	224	Seacoast Banking Corp. of Florida*		488

See Notes to Financial Statements.

Schedule of Investments (Continued)

PowerShares FTSE NASDAQ Small Cap Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	32	Shore Bancshares, Inc.	$	451
	33	Sierra Bancorp		412
	63	Simmons First National Corp., Class A		1,769
	821	South Financial Group, Inc. (The)*		632
	59	Southside Bancshares, Inc.		1,273
	55	Southwest Bancorp, Inc.		806
	86	StellarOne Corp.		1,282
	388	Sterling Bancshares, Inc.		2,281
	36	Suffolk Bancorp		1,118
	66	Sun Bancorp, Inc.*		356
	490	Susquehanna Bancshares, Inc.		5,341
	46	Territorial Bancorp, Inc.		873
	135	Texas Capital Bancshares, Inc.*		2,686
	96	Thomas Weisel Partners Group, Inc.*		754
	169	Tower Group, Inc.		3,897
	95	Townebank		1,523
	79	TradeStation Group, Inc.*		660
	60	TriCo Bancshares		1,142
	290	TrustCo Bank Corp. NY		1,928
	95	Union First Market Bankshares Corp.		1,594
	138	United America Indemnity Ltd., Class A*		1,311
	358	United Community Banks, Inc.*		2,091
	68	United Financial Bancorp, Inc.		951
	76	United Fire & Casualty Co.		1,738
	62	Univest Corp. of Pennsylvania		1,213
	47	ViewPoint Financial Group		800
	101	Virginia Commerce Bancorp*		720
	60	Washington Trust Bancorp, Inc.		1,087
	101	WesBanco, Inc.		1,947
	116	Westfield Financial, Inc.		1,056
	83	Wilshire Bancorp, Inc.		901
	62	World Acceptance Corp.*		2,187
	27	WSFS Financial Corp.		1,137
				198,140
		Health Care—19.3%
	62	3SBio, Inc. ADR (Cayman Islands)*		739
	82	Abaxis, Inc.*		2,125
	142	Abiomed, Inc.*		1,369
	104	Accelrys, Inc.*		727
	219	Accuray, Inc.*		1,410
	145	Acorda Therapeutics, Inc.*		5,619
	90	Affymax, Inc.*		2,146
	270	Affymetrix, Inc.*		1,874
	46	Air Methods Corp.*		1,522
	250	Akorn, Inc.*		525
	91	Albany Molecular Research, Inc.*		728
	300	Allos Therapeutics, Inc.*		2,370
	35	Almost Family, Inc.*		1,483
	149	Alphatec Holdings, Inc.*		995
	80	AMAG Pharmaceuticals, Inc.*		2,732

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	60	American Dental Partners, Inc.*	$	773
	34	Analogic Corp.		1,626
	92	Angiodynamics, Inc.*		1,472
	86	Ardea Biosciences, Inc.*		2,184
	353	Arena Pharmaceuticals, Inc.*		1,147
	414	Ariad Pharmaceuticals, Inc.*		1,457
	170	ArQule, Inc.*		1,083
	192	Array Biopharma, Inc.*		710
	7	Atrion Corp.		992
	205	ATS Medical, Inc.*		818
	167	BioCryst Pharmaceuticals, Inc.*		1,269
	62	BioMimetic Therapeutics, Inc.*		826
	105	Bio-Reference Labs, Inc.*		2,457
	150	BioScrip, Inc.*		1,341
	18	Biospecifics Technologies Corp.*		569
	119	BMP Sunstone Corp. (China)*		639
	144	Cadence Pharmaceuticals, Inc.*		1,411
	230	Cardiome Pharma Corp. (Canada)*		1,923
	90	CardioNet, Inc.*		866
	312	Celera Corp.*		2,331
	2,150	Cell Therapeutics, Inc.*		1,328
	120	Celldex Therapeutics, Inc.*		980
	95	China Medical Technologies, Inc. ADR (Cayman Islands)		1,319
	75	Clinical Data, Inc.*		1,401
	20	Computer Programs & Systems, Inc.		901
	116	Conceptus, Inc.*		2,197
	34	CorVel Corp.*		1,132
	117	Cross Country Healthcare, Inc.*		1,172
	60	Crucell NV ADR (Netherlands)*		1,261
	57	Cumberland Pharmaceuticals, Inc.*		607
	25	Cutera, Inc.*		289
	79	Cyberonics, Inc.*		1,543
	37	Cynosure, Inc., Class A*		466
	146	Cypress Bioscience, Inc.*		736
	231	Cytokinetics, Inc.*		744
	188	Dexcom, Inc.*		2,059
	568	Discovery Laboratories, Inc.*		285
	330	Durect Corp.*		940
	365	Dyax Corp.*		1,277
	31	Ensign Group, Inc. (The)		538
	225	Enzon Pharmaceuticals, Inc.*		2,380
	185	eResearchTechnology, Inc.*		1,363
	73	Eurand NV (Netherlands)*		752
	36	Exactech, Inc.*		737
	409	Exelixis, Inc.*		2,364
	91	Flamel Technologies SA ADR (France)*		784
	81	Genomic Health, Inc.*		1,298
	66	Genoptix, Inc.*		2,554
	111	Gentiva Health Services, Inc.*		3,183
	371	Geron Corp.*		2,163

See Notes to Financial Statements.

Schedule of Investments (Continued)

PowerShares FTSE NASDAQ Small Cap Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	56	Given Imaging Ltd. (Israel)*	$	1,175
	55	Gtx, Inc.*		180
	349	Halozyme Therapeutics, Inc.*		2,973
	142	Hansen Medical, Inc.*		361
	128	Healthways, Inc.*		2,085
	38	HeartWare International, Inc.*		2,137
	40	ICU Medical, Inc.*		1,424
	101	Idenix Pharmaceuticals, Inc.*		467
	89	Idera Pharmaceuticals, Inc.*		557
	217	Immunogen, Inc.*		2,150
	286	Immunomedics, Inc.*		1,001
	450	Incyte Corp.*		6,039
	313	Inspire Pharmaceuticals, Inc.*		2,144
	140	Insulet Corp.*		1,932
	207	InterMune, Inc.*		8,810
	127	inVentiv Health, Inc.*		2,925
	60	IPC The Hospitalist Co., Inc.*		1,862
	68	IRIS International, Inc.*		777
	47	Jazz Pharmaceuticals, Inc.*		477
	56	Kendle International, Inc.*		927
	41	Kensey Nash Corp.*		929
	940	Lexicon Pharmaceuticals, Inc.*		1,513
	51	LHC Group, Inc.*		1,739
	446	Ligand Pharmaceuticals, Inc., Class B*		821
	158	Luminex Corp.*		2,569
	95	MAKO Surgical Corp.*		1,333
	215	Mannkind Corp.*		1,494
	37	MAP Pharmaceuticals, Inc.*		664
	126	Martek Biosciences Corp.*		2,776
	89	Maxygen, Inc.*		570
	58	MedCath Corp.*		576
	62	Medical Action Industries, Inc.*		736
	150	Medicines Co. (The)*		1,101
	65	Medidata Solutions, Inc.*		954
	95	Medivation, Inc.*		1,060
	57	MedQuist, Inc.		531
	106	Merit Medical Systems, Inc.*		1,714
	101	Metabolix, Inc.*		1,259
	227	Micromet, Inc.*		1,730
	61	Micrus Endovascular Corp.*		1,225
	127	Momenta Pharmaceuticals, Inc.*		1,763
	46	MWI Veterinary Supply, Inc.*		1,930
	93	Myriad Pharmaceuticals, Inc.*		457
	193	Nabi Biopharmaceuticals*		1,085
	79	Nanosphere, Inc.*		498
	108	Natus Medical, Inc.*		1,840
	84	Neogen Corp.*		2,208
	202	Neurocrine Biosciences, Inc.*		648
	66	NovaMed, Inc.*		216
	382	Novavax, Inc.*		1,081
	171	NPS Pharmaceuticals, Inc.*		1,192

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	132	Nxstage Medical, Inc.*	$	1,679
	33	Obagi Medical Products, Inc.*		445
	94	Odyssey HealthCare, Inc.*		1,958
	123	Omnicell, Inc.*		1,642
	143	Optimer Pharmaceuticals, Inc.*		1,760
	175	OraSure Technologies, Inc.*		1,109
	134	Orexigen Therapeutics, Inc.*		908
	65	Orthofix International NV (Netherlands)*		2,222
	289	Orthovita, Inc.*		1,156
	25	Osiris Therapeutics, Inc.*		187
	160	Pain Therapeutics, Inc.*		960
	51	Palomar Medical Technologies, Inc.*		641
	110	Pharmasset, Inc.*		3,564
	113	Pozen, Inc.*		1,224
	119	Progenics Pharmaceuticals, Inc.*		766
	205	QLT, Inc. (Canada)*		1,296
	244	Questcor Pharmaceuticals, Inc.*		2,377
	110	Quidel Corp.*		1,621
	138	Radnet, Inc.*		508
	117	Repligen Corp.*		411
	84	Res-Care, Inc.*		978
	197	Rigel Pharmaceuticals, Inc.*		1,531
	46	Rochester Medical Corp.*		552
	206	RTI Biologics, Inc.*		789
	170	Sangamo Biosciences, Inc.*		1,047
	220	Santarus, Inc.*		722
	250	Savient Pharmaceuticals, Inc.*		3,625
	383	Seattle Genetics, Inc.*		4,826
	231	Sequenom, Inc.*		1,432
	162	SIGA Technologies, Inc.*		1,113
	200	Sinovac Biotech Ltd. (China)*		1,158
	45	Somanetics Corp.*		910
	55	SonoSite, Inc.*		1,844
	126	Spectranetics Corp.*		859
	143	Stereotaxis, Inc.*		679
	165	Sun Healthcare Group, Inc.*		1,475
	229	SuperGen, Inc.*		676
	66	SurModics, Inc.*		1,228
	130	Syneron Medical Ltd. (Israel)*		1,495
	42	Synovis Life Technologies, Inc.*		622
	108	Synta Pharmaceuticals Corp.*		438
	204	Theravance, Inc.*		3,421
	204	TomoTherapy, Inc.*		794
	44	US Physical Therapy, Inc.*		772
	103	Vanda Pharmaceuticals, Inc.*		862
	64	Vascular Solutions, Inc.*		634
	290	ViroPharma, Inc.*		3,689
	24	Virtual Radiologic Corp.*		300
	55	Vital Images, Inc.*		868
	306	Vivus, Inc.*		3,118
	115	XenoPort, Inc.*		1,196

See Notes to Financial Statements.

Schedule of Investments (Continued)

PowerShares FTSE NASDAQ Small Cap Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	968	Xoma Ltd.*	$	640
	22	Young Innovations, Inc.		554
	81	Zoll Medical Corp.*		2,475
	243	Zymogenetics, Inc.*		1,443
				244,825
		Industrials—13.2%
	87	3D Systems Corp.*		1,354
	48	AAON, Inc.		1,159
	121	Acacia Research - Acacia Technologies*		1,800
	255	Advanced Battery Technologies, Inc.*		885
	57	Advisory Board Co. (The)*		1,877
	61	Aerovironment, Inc.*		1,597
	100	Altra Holdings, Inc.*		1,516
	12	American Commercial Lines, Inc.*		245
	40	American Railcar Industries, Inc.		654
	34	American Science & Engineering, Inc.		2,555
	40	American Woodmark Corp.		924
	149	APAC Customer Services, Inc.*		857
	106	Apogee Enterprises, Inc.		1,456
	99	A-Power Energy Generation Systems Ltd.*		1,039
	50	Applied Signal Technology, Inc.		934
	62	Argon ST, Inc.*		1,612
	85	Astec Industries, Inc.*		2,815
	75	ATC Technology Corp.*		1,533
	97	Atlas Air Worldwide Holdings, Inc.*		5,361
	29	Barrett Business Services, Inc.		447
	170	Beacon Roofing Supply, Inc.*		3,774
	122	Canadian Solar, Inc. (China)*		2,113
	916	Capstone Turbine Corp.*		1,118
	70	Casella Waste Systems, Inc., Class A*		361
	97	Ceradyne, Inc.*		2,153
	108	Chart Industries, Inc.*		2,483
	182	China BAK Battery, Inc.*		366
	31	China Fire & Security Group, Inc.*		424
	55	China Ritar Power Corp.*		237
	108	China Sunergy Co. Ltd. ADR (China)*		518
	65	China Valves Technology, Inc.*		712
	72	Columbus McKinnon Corp.*		1,298
	45	Courier Corp.		774
	41	CRA International, Inc.*		952
	103	Diamond Management & Technology Consultants, Inc.		836
	975	DryShips, Inc. (Greece)*		5,655
	37	DXP Enterprises, Inc.*		614
	37	Dynamex, Inc.*		655
	49	Dynamic Materials Corp.		880
	236	Eagle Bulk Shipping, Inc.*		1,366
	88	Encore Wire Corp.		1,954
	184	Ener1, Inc.*		765
	174	Energy Conversion Devices, Inc.*		1,239

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	195	Energy Recovery, Inc.*	$	1,176
	68	EnerNOC, Inc.*		1,977
	88	Euroseas Ltd.		355
	790	Evergreen Solar, Inc.*		885
	52	Exponent, Inc.*		1,550
	266	Force Protection, Inc.*		1,423
	45	FreightCar America, Inc.		1,288
	69	Fuel Tech, Inc.*		518
	321	FuelCell Energy, Inc.*		883
	106	Fushi Copperweld, Inc.*		1,172
	70	G&K Services, Inc., Class A		1,924
	72	GeoEye, Inc.*		2,052
	86	Gibraltar Industries, Inc.*		1,292
	223	Great Lakes Dredge & Dock Corp.		1,209
	132	H&E Equipment Services, Inc.*		1,559
	47	Harbin Electric, Inc.*		1,030
	196	Hawaiian Holdings, Inc.*		1,392
	165	Healthcare Services Group, Inc.		3,546
	64	Heidrick & Struggles International, Inc.		1,690
	30	Heritage-Crystal Clean, Inc.*		308
	52	Herley Industries, Inc.*		762
	68	Houston Wire & Cable Co.		894
	24	Hurco Cos., Inc.*		467
	82	Huron Consulting Group, Inc.*		1,920
	55	ICF International, Inc.*		1,274
	129	Innerworkings, Inc.*		771
	145	Insituform Technologies, Inc., Class A*		3,476
	67	Insteel Industries, Inc.		821
	55	Integrated Electrical Services, Inc.*		343
	215	Interface, Inc., Class A		2,812
	475	JA Solar Holdings Co. Ltd. ADR (China)*		2,902
	47	Jinpan International Ltd. (China)		822
	97	Kaman Corp.		2,659
	119	Kelly Services, Inc., Class A*		1,914
	148	Kforce, Inc.*		2,056
	101	Kimball International, Inc., Class B		812
	60	Ladish Co., Inc.*		1,649
	24	Lawson Products, Inc.		390
	74	Layne Christensen Co.*		2,026
	38	LB Foster Co., Class A*		1,125
	98	LECG Corp.*		329
	33	LMI Aerospace, Inc.*		570
	91	LSI Industries, Inc.		640
	62	Marten Transport Ltd.*		1,355
	90	McGrath Rentcorp		2,339
	338	Microvision, Inc.*		1,058
	3	Mitsui & Co. Ltd. ADR (Japan)		985
	135	Mobile Mini, Inc.*		2,244
	46	Multi-Color Corp.		575
	75	MYR Group, Inc.*		1,345
	35	Northwest Pipe Co.*		844

See Notes to Financial Statements.

Schedule of Investments (Continued)

PowerShares FTSE NASDAQ Small Cap Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	226	Odyssey Marine Exploration, Inc.*	$	303
	11	Omega Flex, Inc.		135
	137	On Assignment, Inc.*		963
	100	Pacer International, Inc.*		664
	5	Patriot Transportation Holding, Inc.*		420
	371	Plug Power, Inc.*		244
	56	PMFG, Inc.*		805
	33	Powell Industries, Inc.*		1,108
	10	Preformed Line Products Co.		300
	50	Primoris Services Corp.		395
	29	Protection One, Inc.*		449
	68	Raven Industries, Inc.		2,064
	83	RBC Bearings, Inc.*		2,619
	97	Republic Airways Holdings, Inc.*		607
	48	RINO International Corp.*		827
	75	Rush Enterprises, Inc., Class A*		1,216
	30	Rush Enterprises, Inc., Class B*		413
	51	Saia, Inc.*		845
	71	School Specialty, Inc.*		1,666
	93	SmartHeat, Inc.*		780
	141	Solarfun Power Holdings Co. Ltd. ADR (China)*		1,218
	58	Standard Parking Corp.*		980
	174	Star Bulk Carriers Corp.		496
	61	Sterling Construction Co., Inc.*		1,068
	48	Sun Hydraulics Corp.		1,344
	235	Taser International, Inc.*		1,112
	71	Team, Inc.*		1,235
	51	Tecumseh Products Co., Class A*		652
	14	Tecumseh Products Co., Class B*		184
	51	Thermadyne Holdings Corp.*		559
	50	Titan Machinery, Inc.*		719
	84	Ultrapetrol Bahamas Ltd.*		514
	55	Universal Forest Products, Inc.		2,313
	61	Universal Truckload Services, Inc.*		1,114
	52	US Ecology, Inc.		811
	30	USA Truck, Inc.*		553
	369	Valence Technology, Inc.*		387
	85	Vicor Corp.*		1,285
	62	Vitran Corp., Inc. (Canada)*		942
	14	VSE Corp.		563
	131	Waste Services, Inc.*		1,472
				167,619
		Information Technology—26.2%
	129	ACI Worldwide, Inc.*		2,424
	110	Acme Packet, Inc.*		2,875
	97	Actel Corp.*		1,505
	172	Actuate Corp.*		974
	460	Adaptec, Inc.*		1,421
	163	Advanced Analogic Technologies, Inc.*		619

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	119	Advanced Energy Industries, Inc.*	$	1,752
	25	Aixtron AG ADR (Germany)		785
	221	Alvarion Ltd. (Israel)*		831
	86	American Software, Inc., Class A		550
	515	Amkor Technology, Inc.*		3,883
	241	Anadigics, Inc.*		1,212
	57	Anaren, Inc.*		845
	252	Applied Micro Circuits Corp.*		2,843
	28	Archipelago Learning, Inc.*		406
	128	ArcSight, Inc.*		2,909
	283	ARM Holdings PLC ADR (United Kingdom)		3,235
	581	Art Technology Group, Inc.*		2,487
	252	Aruba Networks, Inc.*		3,165
	31	ASM International NV (Netherlands)*		806
	119	ATMI, Inc.*		2,157
	227	Aviat Networks, Inc.*		1,475
	142	Avid Technology, Inc.*		2,073
	36	Bel Fuse, Inc., Class B		843
	8	BEL Fuse, Inc., Class A		174
	189	BigBand Networks, Inc.*		624
	67	Black Box Corp.		2,090
	155	Blue Coat Systems, Inc.*		5,042
	77	Bottomline Technologies, Inc.*		1,340
	265	Brightpoint, Inc.*		2,144
	245	Brooks Automation, Inc.*		2,381
	27	Cass Information Systems, Inc.		859
	304	CDC Corp., Class A (Hong Kong)*		809
	135	Ceragon Networks Ltd. (Israel)*		1,357
	76	CEVA, Inc.*		930
	34	Changyou.com Ltd. ADR (Cayman Islands)*		1,115
	64	China Finance Online Co. Ltd. ADR (China)*		480
	139	China Information Security Technology, Inc.*		840
	247	Cirrus Logic, Inc.*		3,139
	103	Cogo Group, Inc.*		725
	89	Cohu, Inc.		1,437
	86	comScore, Inc.*		1,561
	95	Comverge, Inc.*		1,077
	80	Constant Contact, Inc.*		2,044
	31	CPI International, Inc.*		416
	133	Cray, Inc.*		899
	156	Daktronics, Inc.		1,307
	75	Deltek, Inc.*		590
	83	Demandtec, Inc.*		561
	233	Descartes Systems Group, Inc. (The) (Canada)*		1,421
	107	DG Fastchannel, Inc.*		3,764
	94	Digi International, Inc.*		1,007
	124	Diodes, Inc.*		2,662
	124	DivX, Inc.*		1,037
	83	Double-Take Software, Inc.*		892
	138	DragonWave, Inc. (Canada)*		1,173
	87	DSP Group, Inc.*		711

See Notes to Financial Statements.

Schedule of Investments (Continued)

PowerShares FTSE NASDAQ Small Cap Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	66	DTS, Inc.*	$	2,194
	97	Ebix, Inc.*		1,578
	116	Echelon Corp.*		1,096
	50	Echo Global Logistics, Inc.*		674
	68	Electro Rent Corp.		972
	104	Electro Scientific Industries, Inc.*		1,432
	58	EMS Technologies, Inc.*		922
	495	Entegris, Inc.*		3,064
	232	Epicor Software Corp.*		2,130
	137	EPIQ Systems, Inc.*		1,651
	166	Exar Corp.*		1,227
	33	ExlService Holdings, Inc.*		525
	340	Extreme Networks, Inc.*		1,132
	93	EZchip Semiconductor Ltd. (Israel)*		1,810
	127	FalconStor Software, Inc.*		380
	61	FARO Technologies, Inc.*		1,538
	285	Finisar Corp.*		4,264
	64	Forrester Research, Inc.*		2,055
	24	Fundtech Ltd. (Israel)*		312
	79	Funtalk China Holdings Ltd. (Cayman Islands)*		484
	155	GigaMedia Ltd. (Taiwan, Republic of China)*		467
	152	Gilat Satellite Networks Ltd. (Israel)*		921
	81	Globecomm Systems, Inc.*		631
	147	Hackett Group, Inc. (The)*		413
	366	Harmonic, Inc.*		2,503
	351	Himax Technologies, Inc. ADR (Taiwan, Republic of China)		1,099
	33	Hughes Communications, Inc.*		921
	52	ICx Technologies, Inc.*		367
	104	iGATE Corp.		1,287
	106	Immersion Corp.*		594
	163	infoGROUP, Inc.*		1,306
	120	Information Services Group, Inc.*		413
	135	InfoSpace, Inc.*		1,413
	173	Insight Enterprises, Inc.*		2,600
	66	Integral Systems, Inc.*		575
	49	Interactive Intelligence, Inc.*		969
	192	Internap Network Services Corp.*		1,110
	119	Internet Brands, Inc., Class A*		1,232
	140	Internet Capital Group, Inc.*		1,385
	28	Internet Gold-Golden Lines Ltd. (Israel)*		794
	83	Intevac, Inc.*		1,155
	74	Isilon Systems, Inc.*		961
	62	Ituran Location and Control Ltd. (Israel)*		924
	95	Ixia*		974
	88	IXYS Corp.*		795
	153	JDA Software Group, Inc.*		4,422
	86	Kenexa Corp.*		1,291
	55	Keynote Systems, Inc.		604
	128	Knot, Inc. (The)*		1,038
	130	KongZhong Corp. ADR (China)*		941

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	252	Kopin Corp.*	$	1,061
	265	Kulicke & Soffa Industries, Inc.*		2,173
	440	Lattice Semiconductor Corp.*		2,319
	128	Limelight Networks, Inc.*		515
	77	Liquidity Services, Inc.*		875
	82	Littelfuse, Inc.*		3,463
	185	LivePerson, Inc.*		1,528
	64	LogMeIn, Inc.*		1,497
	26	LoopNet, Inc.*		293
	77	Loral Space & Communications, Inc.*		3,316
	64	Manhattan Associates, Inc.*		1,834
	96	Marchex, Inc., Class B		505
	190	Mattson Technology, Inc.*		855
	99	Maxwell Technologies, Inc.*		1,429
	110	Mellanox Technologies Ltd. (Israel)*		2,728
	89	Mercury Computer Systems, Inc.*		1,145
	178	Micrel, Inc.		2,077
	35	MicroStrategy, Inc., Class A*		2,681
	205	Microtune, Inc.*		549
	171	ModusLink Global Solutions, Inc.*		1,527
	100	Monolithic Power Systems, Inc.*		2,465
	98	Monotype Imaging Holdings, Inc.*		1,023
	593	Move, Inc.*		1,305
	63	MTS Systems Corp.		1,882
	38	Multi-Fineline Electronix, Inc.*		985
	31	NCI, Inc., Class A*		881
	110	Ness Technologies, Inc.*		712
	235	Netlogic Microsystems, Inc.*		7,325
	157	Netscout Systems, Inc.*		2,280
	137	Newport Corp.*		1,621
	180	NIC, Inc.		1,269
	117	Novatel Wireless, Inc.*		801
	17	NVE Corp.*		820
	141	O2micro International Ltd. ADR (Cayman Islands)*		987
	161	Oclaro, Inc.*		2,468
	190	OmniVision Technologies, Inc.*		3,336
	114	Online Resources Corp.*		531
	79	Oplink Communications, Inc.*		1,194
	59	OPNET Technologies, Inc.		948
	253	Opnext, Inc.*		595
	120	Orbcomm, Inc.*		265
	130	Orbotech Ltd. (Israel)*		1,573
	67	OSI Systems, Inc.*		1,745
	31	PC Connection, Inc.*		213
	72	PC-Tel, Inc.*		469
	56	Pegasystems, Inc.		1,774
	117	Perficient, Inc.*		1,459
	97	Pericom Semiconductor Corp.*		1,133
	133	Phoenix Technologies Ltd.*		398
	100	Power Integrations, Inc.		3,848

See Notes to Financial Statements.

Schedule of Investments (Continued)

PowerShares FTSE NASDAQ Small Cap Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	333	Power-One, Inc.*	$	2,617
	139	Presstek, Inc.*		642
	88	PRGX Global, Inc.*		595
	47	QAD, Inc.*		259
	125	Radiant Systems, Inc.*		1,759
	90	RadiSys Corp.*		881
	74	RADvision Ltd. (Israel)*		473
	72	RADWARE Ltd. (Israel)*		1,425
	386	RealNetworks, Inc.*		1,602
	44	Renaissance Learning, Inc.		625
	58	Retalix Ltd. (Israel)*		736
	48	RightNow Technologies, Inc.*		787
	35	Rimage Corp.*		614
	57	Rubicon Technology, Inc.*		1,547
	88	Rudolph Technologies, Inc.*		839
	199	S1 Corp.*		1,228
	295	Sanmina-SCI Corp.*		5,260
	117	Seachange International, Inc.*		975
	68	Shoretel, Inc.*		445
	118	Sierra Wireless, Inc. (Canada)*		949
	117	Sigma Designs, Inc.*		1,388
	115	Silicon Graphics International Corp.*		1,137
	286	Silicon Image, Inc.*		1,064
	105	Silicon Motion Technology Corp. ADR (Taiwan, Republic of China)*		571
	177	SMART Modular Technologies (WWH), Inc.*		1,243
	127	Smith Micro Software, Inc.*		1,205
	206	SonicWALL, Inc.*		2,087
	77	Sourcefire, Inc.*		1,722
	45	Stamps.com, Inc.*		477
	84	Standard Microsystems Corp.*		2,157
	143	STEC, Inc.*		1,986
	77	Stratasys, Inc.*		1,836
	200	SuccessFactors, Inc.*		4,186
	102	Super Micro Computer, Inc.*		1,446
	49	Supertex, Inc.*		1,323
	177	Support.Com, Inc.*		772
	99	Switch & Data Facilities Co., Inc.*		1,900
	167	Symmetricom, Inc.*		1,107
	131	Symyx Technologies, Inc.*		714
	35	Synchronoss Technologies, Inc.*		715
	146	Taleo Corp., Class A*		3,793
	47	Techtarget, Inc.*		228
	169	TeleCommunication Systems, Inc., Class A*		1,168
	246	Terremark Worldwide, Inc.*		1,764
	52	The9 Ltd. ADR (China)*		335
	255	THQ, Inc.*		1,938
	418	TiVo, Inc.*		7,323
	25	Travelzoo, Inc.*		498
	333	Trident Microsystems, Inc.*		576
	575	TriQuint Semiconductor, Inc.*		4,335

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	164	TTM Technologies, Inc.*	$	1,781
	93	Ultimate Software Group, Inc.*		3,111
	90	Ultratech, Inc.*		1,322
	242	United Online, Inc.		1,929
	140	Universal Display Corp.*		1,869
	493	UTStarcom, Inc.*		1,405
	107	VASCO Data Security International, Inc.*		693
	150	Veeco Instruments, Inc.*		6,598
	67	Virtusa Corp.*		689
	55	Vocus, Inc.*		938
	96	Volterra Semiconductor Corp.*		2,300
	33	Xyratex Ltd. (Bermuda)*		581
	50	Yucheng Technologies Ltd. (China)*		191
	242	Zix Corp.*		595
	195	Zoran Corp.*		1,897
	66	Zygo Corp.*		624
				332,678
		Materials—2.5%
	99	A. Schulman, Inc.		2,575
	19	AEP Industries, Inc.*		525
	400	Altair Nanotechnologies, Inc.*		234
	106	Balchem Corp.		2,750
	260	Century Aluminum Co.*		3,505
	30	China Natural Resources, Inc. (Hong Kong)*		345
	87	DRDGOLD Ltd. ADR (South Africa)*		438
	212	Globe Specialty Metals, Inc.*		2,650
	90	Gulf Resources, Inc.*		967
	46	Haynes International, Inc.		1,652
	165	Horsehead Holding Corp.*		1,960
	105	ICO, Inc.		900
	60	Innophos Holdings, Inc.		1,709
	90	Innospec, Inc.		1,198
	99	Landec Corp.*		607
	110	Lihir Gold Ltd. ADR (Australia)		3,902
	41	Olympic Steel, Inc.		1,303
	43	Penford Corp.*		398
	146	Senomyx, Inc.*		623
	154	Shengda Tech, Inc.*		1,061
	7	U.S. Lime & Minerals, Inc.*		285
	162	Yongye International, Inc.*		1,236
	131	Zoltek Cos., Inc.*		1,289
				32,112
		Telecommunication Services—1.6%
	167	Alaska Communications Systems Group, Inc.		1,429
	42	Atlantic Tele-Network, Inc.		2,318
	82	Cbeyond, Inc.*		1,261
	127	Cogent Communications Group, Inc.*		1,297
	84	Consolidated Communications Holdings, Inc.		1,558
	148	General Communication, Inc., Class A*		910
	755	ICO Global Communications Holdings Ltd.*		1,132

See Notes to Financial Statements.

Schedule of Investments (Continued)

PowerShares FTSE NASDAQ Small Cap Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	201	Iridium Communications, Inc.*	$	1,620
	127	Neutral Tandem, Inc.*		2,153
	414	PAETEC Holding Corp.*		2,062
	44	Partner Communications Co. Ltd. ADR (Israel)		864
	89	Shenandoah Telecommunications Co.		1,581
	54	SureWest Communications*		464
	87	USA Mobility, Inc.		1,213
				19,862
		Utilities—0.3%
	50	Cadiz, Inc.*		624
	60	China Natural Gas, Inc.*		545
	55	Consolidated Water Co. Ltd. (Cayman Islands)		778
	51	Middlesex Water Co.		921
	95	Southwest Water Co.		1,014
				3,882
		Total Investments (Cost $1,188,813)—99.7%		1,263,986
		Other assets less liabilities—0.3%		4,028
		Net Assets—100.0%	$	1,268,014

Investment Abbreviations:

ADR – American Depositary Receipt

REIT – Real Estate Investment Trust

Notes to Schedule of Investments:

* Non-income producing security.

See Notes to Financial Statements.

Schedule of Investments

PowerShares Zacks Micro Cap Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—22.4%
	41,644	A.C. Moore Arts & Crafts, Inc.*	$	169,908
	17,024	AH Belo Corp., Class A*		144,704
	14,873	Alloy, Inc.*		115,266
	5,051	America's Car-Mart, Inc.*		127,942
	11,243	Arctic Cat, Inc.*		165,834
	9,167	Asbury Automotive Group, Inc.*		142,547
	15,678	Audiovox Corp., Class A*		145,962
	26,884	Beazer Homes USA, Inc.*		176,628
	18,764	Benihana, Inc., Class A*		127,783
	8,025	Big 5 Sporting Goods Corp.		136,024
	318	Biglari Holdings, Inc.*		124,417
	3,910	Blyth, Inc.		225,372
	9,149	Bon-Ton Stores, Inc. (The)*		156,631
	16,856	Books-A-Million, Inc.		124,734
	32,827	Borders Group, Inc.*		83,381
	13,956	Brookfield Homes Corp.*		156,447
	7,876	Brown Shoe Co., Inc.		148,069
	17,137	Build-A-Bear Workshop, Inc.*		163,830
	22,150	Cache, Inc.*		151,284
	31,654	Casual Male Retail Group, Inc.*		129,465
	22,356	Charming Shoppes, Inc.*		126,311
	22,843	China Education Alliance, Inc.*		110,789
	16,688	ChinaCast Education Corp.*		112,310
	15,247	Christopher & Banks Corp.		149,268
	15,584	Conn's, Inc.*		148,516
	3,984	Core-Mark Holding Co., Inc.*		121,592
	10,177	Culp, Inc.*		121,513
	11,225	Dolan Media Co.*		133,465
	34,180	drugstore.com, Inc.*		125,099
	14,442	E.W. Scripps Co., Class A*		157,995
	10,271	Entercom Communications Corp., Class A*		149,546
	21,215	Exide Technologies*		126,017
	18,970	Furniture Brands International, Inc.*		157,072
	14,704	Gaiam, Inc., Class A		133,218
	4,434	G-III Apparel Group Ltd.*		126,812
	53,056	Gray Television, Inc.*		198,960
	38,371	Great Wolf Resorts, Inc.*		123,171
	15,678	Isle of Capri Casinos, Inc.*		170,733
	46,396	Joe's Jeans, Inc.*		114,134
	29,053	Journal Communications, Inc., Class A*		164,730
	5,818	Kirkland's, Inc.*		129,567
	6,810	Landry's Restaurants, Inc.*		157,243
	9,728	La-Z-Boy, Inc.*		126,853
	18,633	Leapfrog Enterprises, Inc.*		127,450
	35,994	Lee Enterprises, Inc.*		136,057
	19,064	Lithia Motors, Inc., Class A*		152,131
	43,571	LJ International, Inc. (British Virgin Islands)*		115,899
	8,325	M/I Homes, Inc.*		129,870
	9,391	Marcus Corp.		120,674
	11,337	MarineMax, Inc.*		126,408

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	21,870	Martha Stewart Living Omnimedia, Inc., Class A*	$	146,092
	24,845	McClatchy Co. (The), Class A*		135,405
	14,723	Media General, Inc., Class A*		186,246
	5,818	Meritage Homes Corp.*		138,352
	10,814	Movado Group, Inc.*		134,202
	31,280	Multimedia Games, Inc.*		142,950
	13,657	O'Charley's, Inc.*		130,424
	6,005	Oxford Industries, Inc.		129,648
	22,973	Pacific Sunwear of California, Inc.*		116,243
	12,141	Pep Boys - Manny, Moe & Jack (The)		152,127
	5,388	Perry Ellis International, Inc.*		130,012
	40,017	Radio One, Inc., Class D*		201,686
	8,157	RC2 Corp.*		149,844
	16,893	Red Lion Hotels Corp.*		129,062
	4,995	Red Robin Gourmet Burgers, Inc.*		121,928
	12,834	Retail Ventures, Inc.*		138,864
	9,541	Rick's Cabaret International, Inc.*		118,022
	11,543	Ruby Tuesday, Inc.*		129,166
	23,030	Ruth's Hospitality Group, Inc.*		125,053
	5,332	Shoe Carnival, Inc.*		147,483
	13,208	SORL Auto Parts, Inc.*		139,873
	21,795	Spartan Motors, Inc.		134,475
	7,932	Stage Stores, Inc.		120,963
	12,310	Standard Motor Products, Inc.		131,225
	26,996	Standard Pacific Corp.*		173,044
	13,507	Stein Mart, Inc.*		128,046
	6,473	Steinway Musical Instruments, Inc.*		124,023
	19,532	Stewart Enterprises, Inc., Class A		132,427
	7,596	Superior Industries International, Inc.		128,069
	16,164	Tongxin International Ltd. (British Virgin Islands)*		123,493
	34,572	TravelCenters of America LLC*		140,708
	18,521	Tuesday Morning Corp.*		104,644
	33,525	Unifi, Inc.*		128,401
	12,310	Universal Travel Group*		112,390
	36,761	ValueVision Media, Inc., Class A*		113,224
	11,524	Wonder Auto Technology, Inc.*		133,333
	44,525	Zale Corp.*		145,151
				12,025,929
		Consumer Staples—3.1%
	27,801	AgFeed Industries, Inc. (China)*		119,544
	29,915	American Oriental Bioengineering, Inc. (China)*		121,156
	11,637	B&G Foods, Inc., Class A		120,210
	13,320	Central Garden & Pet Co., Class A*		137,596
	19,849	China Marine Food Group Ltd.*		122,270
	15,753	Cott Corp. (Canada)*		131,853
	8,232	Inter Parfums, Inc.		142,249
	8,269	John B. Sanfilippo & Son, Inc.*		124,283

See Notes to Financial Statements.

Schedule of Investments (Continued)

PowerShares Zacks Micro Cap Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	15,883	MGP Ingredients, Inc.*	$	123,411
	21,215	Omega Protein Corp.*		113,500
	9,765	Pantry, Inc. (The)*		154,482
	4,191	Seneca Foods Corp., Class A*		137,632
	29,409	SunOpta, Inc. (Canada)*		133,223
				1,681,409
		Energy—9.2%
	34,479	Allis-Chalmers Energy, Inc.*		138,950
	17,941	American Oil & Gas, Inc.*		129,175
	19,457	Atlas Pipeline Holdings LP		123,941
	8,775	Atlas Pipeline Partners LP		126,623
	15,827	Basic Energy Services, Inc.*		161,594
	41,513	BioFuel Energy Corp.*		108,764
	8,175	BreitBurn Energy Partners LP		127,203
	25,967	Bronco Drilling Co., Inc.*		124,122
	13,806	China North East Petroleum Holdings Ltd.*		121,907
	34,872	Constellation Energy Partners LLC		123,447
	11,356	Crosstex Energy LP*		132,411
	14,050	Crosstex Energy, Inc.*		126,872
	4,171	Dawson Geophysical Co.*		122,169
	19,494	Eagle Rock Energy Partners LP		136,653
	16,930	Geokinetics, Inc.*		147,968
	5,462	Global Partners LP		125,298
	8,550	Green Plains Renewable Energy, Inc.*		117,391
	5,612	Gulf Island Fabrication, Inc.		134,520
	16,201	Harvest Natural Resources, Inc.*		143,055
	35,789	Kodiak Oil & Gas Corp. (Canada)*		142,440
	13,601	K-Sea Transportation Partners LP		119,281
	40,147	Magnum Hunter Resources Corp.*		186,282
	7,689	Natural Gas Services Group, Inc.*		137,864
	12,722	North American Energy Partners, Inc. (Canada)*		143,504
	5,275	Petroleum Development Corp.*		123,488
	5,762	PHI, Inc.*		119,792
	17,324	Pioneer Drilling Co.*		127,158
	5,837	Quicksilver Gas Services LP		123,219
	10,720	Rex Energy Corp.*		142,576
	7,539	Rex Stores Corp.*		129,369
	9,111	Superior Well Services, Inc.*		132,109
	4,976	T-3 Energy Services, Inc.*		148,036
	4,472	TransMontaigne Partners LP		133,534
	52,589	Trico Marine Services, Inc.*		172,492
	19,812	Union Drilling, Inc.*		131,354
	37,903	Uranium Energy Corp.*		108,403
	21,140	USEC, Inc.*		126,840
				4,919,804
		Financials—20.9%
	20,971	Advance America Cash Advance Centers, Inc.		119,954
	4,771	American Capital Agency Corp. REIT		131,250

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	7,352	American Safety Insurance Holdings Ltd. (Bermuda)*	$	118,955
	13,507	Ameris Bancorp		150,333
	37,659	Arbor Realty Trust, Inc. REIT*		153,649
	6,848	Arlington Asset Investment Corp., Class A		138,056
	17,024	Ashford Hospitality Trust, Inc. REIT*		158,323
	17,324	Asta Funding, Inc.		133,914
	13,713	Bancorp, Inc.*		121,634
	68,940	BankAtlantic Bancorp, Inc., Class A*		180,623
	6,661	Berkshire Hills Bancorp, Inc.		139,881
	8,755	BofI Holding, Inc.*		154,351
	8,513	Calamos Asset Management, Inc., Class A		105,987
	21,982	CapLease, Inc. REIT		128,155
	15,434	Cedar Shopping Centers, Inc. REIT		122,855
	25,162	Center Financial Corp.*		169,592
	32,104	China Housing & Land Development, Inc.*		111,080
	21,626	Cohen & Co., Inc. REIT*		123,917
	6,005	Columbia Banking System, Inc.		134,992
	7,988	Compass Diversified Holdings		115,986
	21,552	Cowen Group, Inc., Class A*		116,381
	21,252	Education Realty Trust, Inc. REIT		150,252
	7,427	Encore Capital Group, Inc.*		170,895
	4,059	Evercore Partners, Inc., Class A		145,475
	26,827	FBR Capital Markets Corp.*		126,892
	10,776	Federal Agricultural Mortgage Corp., Class C		242,676
	21,402	FelCor Lodging Trust, Inc. REIT*		173,570
	10,513	Fifth Street Finance Corp.		134,041
	8,344	Financial Institutions, Inc.		134,172
	50,624	First BanCorp.		107,323
	12,066	First Defiance Financial Corp.		162,891
	8,100	First Financial Holdings, Inc.		114,372
	15,733	First Industrial Realty Trust, Inc. REIT*		125,549
	42,973	First Marblehead Corp. (The)*		150,835
	8,119	First Potomac Realty Trust REIT		131,690
	9,635	Flushing Financial Corp.		131,132
	43,739	Gramercy Capital Corp. REIT*		110,660
	50,849	Hanmi Financial Corp.*		151,530
	11,524	Hercules Technology Growth Capital, Inc.		124,920
	23,553	Hersha Hospitality Trust REIT		135,901
	8,100	Horace Mann Educators Corp.		139,401
	26,584	iStar Financial, Inc. REIT*		178,379
	25,799	Kite Realty Group Trust REIT		139,831
	21,552	Kohlberg Capital Corp.		121,769
	16,519	Maiden Holdings Ltd. (Bermuda)		123,727
	23,423	MCG Capital Corp.*		155,294
	15,453	Meadowbrook Insurance Group, Inc.		122,079
	13,938	Nara Bancorp, Inc.*		125,442
	8,662	National Financial Partners Corp.*		133,308
	655	National Western Life Insurance Co., Class A		125,197
	19,120	NewStar Financial, Inc.*		146,459
	7,147	Northrim Bancorp, Inc.		123,357

See Notes to Financial Statements.

Schedule of Investments (Continued)

PowerShares Zacks Micro Cap Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	28,979	NorthStar Realty Finance Corp. REIT	$	136,781
	7,334	One Liberty Properties, Inc. REIT		125,045
	4,789	Oppenheimer Holdings, Inc., Class A		139,216
	9,036	Oriental Financial Group, Inc.		151,082
	6,492	Parkway Properties, Inc. REIT		127,892
	11,786	PennantPark Investment Corp.		128,939
	9,785	Pennsylvania Real Estate Investment Trust REIT		154,505
	12,123	Penson Worldwide, Inc.*		113,956
	7,409	Peoples Bancorp, Inc.		128,472
	50,418	Phoenix Cos., Inc. (The)*		162,850
	22,506	PMI Group, Inc. (The)*		117,256
	12,235	Presidential Life Corp.		144,128
	61,625	RAIT Financial Trust REIT*		250,197
	10,832	Ramco-Gershenson Properties Trust REIT		134,967
	7,539	Renasant Corp.		124,620
	18,054	Resource Capital Corp. REIT		128,364
	9,391	Safeguard Scientifics, Inc.*		129,220
	3,236	Safety Insurance Group, Inc.		120,670
	11,076	SeaBright Insurance Holdings, Inc.		120,507
	8,849	Stewart Information Services Corp.		100,702
	28,717	Strategic Hotels & Resorts, Inc. REIT*		184,363
	9,410	Taylor Capital Group, Inc.*		128,917
	36,649	Thomas Properties Group, Inc.		167,486
	13,339	Tree.com, Inc.*		121,385
	27,669	United Community Banks, Inc.*		161,587
	7,633	Walter Investment Management Corp. REIT		138,386
	7,502	WesBanco, Inc.		144,639
	11,056	Wilshire Bancorp, Inc.		120,068
	10,139	Winthrop Realty Trust REIT		136,876
				11,231,963
		Health Care—7.7%
	16,631	Affymetrix, Inc.*		115,419
	44,862	Allied Healthcare International, Inc.*		126,062
	7,820	Angiodynamics, Inc.*		125,120
	17,118	Anika Therapeutics, Inc.*		120,682
	3,723	Assisted Living Concepts, Inc., Class A*		130,677
	39,362	Athersys, Inc.*		130,288
	18,577	BioCryst Pharmaceuticals, Inc.*		141,185
	15,284	BioScrip, Inc.*		136,639
	10,326	Chindex International, Inc.*		130,521
	24,900	Compugen Ltd. (Israel)*		119,022
	10,851	Cynosure, Inc., Class A*		136,723
	40,017	Five Star Quality Care, Inc.*		118,450
	5,519	Hi-Tech Pharmacal Co., Inc.*		134,277
	44,525	Keryx Biopharmaceuticals, Inc.*		250,231
	6,754	Kindred Healthcare, Inc.*		120,491
	11,655	MedCath Corp.*		115,851
	9,952	Medical Action Industries, Inc.*		118,130
	5,949	OncoGenex Pharmaceutical, Inc.*		130,878

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	8,025	Providence Service Corp. (The)*	$	133,295
	23,928	QLT, Inc. (Canada)*		151,225
	4,472	RehabCare Group, Inc.*		127,541
	28,175	RTI Biologics, Inc.*		107,910
	34,572	Sciclone Pharmaceuticals, Inc.*		144,511
	20,654	Sinovac Biotech Ltd. (China)*		119,587
	17,660	Spectranetics Corp.*		120,441
	26,472	Spectrum Pharmaceuticals, Inc.*		136,596
	12,796	Sun Healthcare Group, Inc.*		114,396
	12,160	Symmetry Medical, Inc.*		140,570
	11,169	Syneron Medical Ltd. (Israel)*		128,444
	33,244	Tianyin Pharmaceutical Co., Inc.		116,687
	6,866	Triple-S Management Corp., Class B*		124,961
	10,570	Vanda Pharmaceuticals, Inc.*		88,471
				4,155,281
		Industrials—12.2%
	36,200	Air Transport Services Group, Inc.*		199,100
	13,601	American Reprographics Co.*		135,874
	4,921	Ampco-Pittsburgh Corp.		126,519
	7,726	Apogee Enterprises, Inc.		106,155
	11,375	A-Power Energy Generation Systems Ltd.*		119,324
	38,015	Astrotech Corp.*		110,243
	50,624	China BAK Battery, Inc.*		101,754
	6,960	China Yuchai International Ltd. (Bermuda)		146,856
	2,956	Consolidated Graphics, Inc.*		123,886
	5,799	Ducommun, Inc.		132,739
	13,919	Dycom Industries, Inc.*		147,820
	22,973	Eagle Bulk Shipping, Inc.*		133,014
	7,502	Ennis, Inc.		138,712
	20,242	Excel Maritime Carriers Ltd. (Liberia)*		144,123
	32,365	ExpressJet Holdings, Inc.*		129,460
	10,869	Fushi Copperweld, Inc.*		120,211
	9,672	Gibraltar Industries, Inc.*		145,273
	23,235	Great Lakes Dredge & Dock Corp.		125,934
	11,076	Greenbrier Cos., Inc.*		180,317
	23,460	Innerworkings, Inc.*		140,291
	4,153	International Shipholding Corp.		126,002
	5,874	Jinpan International Ltd. (China)		102,678
	7,334	Kelly Services, Inc., Class A*		117,931
	6,061	Ladish Co., Inc.*		166,617
	15,546	Lydall, Inc.*		125,301
	20,373	Metalico, Inc.*		134,462
	1,646	NACCO Industries, Inc., Class A		143,103
	17,118	On Assignment, Inc.*		120,340
	26,191	Paragon Shipping, Inc., Class A		124,931
	16,426	Pinnacle Airlines Corp.*		120,074
	7,389	Quanex Building Products Corp.		140,391
	20,616	Republic Airways Holdings, Inc.*		129,056
	9,242	Rush Enterprises, Inc., Class A*		149,905
	8,793	Saia, Inc.*		145,700

See Notes to Financial Statements.

Schedule of Investments (Continued)

PowerShares Zacks Micro Cap Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	5,369	School Specialty, Inc.*	$	125,957
	15,229	SFN Group, Inc.*		130,208
	20,691	Sparton Corp.*		120,835
	4,734	Standex International Corp.		113,001
	41,925	Star Bulk Carriers Corp.		119,486
	6,098	TAL International Group, Inc.		158,487
	16,706	TBS International PLC, Class A (Ireland)*		134,984
	9,952	Tecumseh Products Co., Class A*		127,187
	13,975	Titan International, Inc.		173,430
	22,225	Ultrapetrol Bahamas Ltd.*		136,017
	3,161	Universal Forest Products, Inc.		132,920
	5,931	Viad Corp.		138,785
	10,084	Vitran Corp., Inc. (Canada)*		153,176
	23,965	WCA Waste Corp.*		118,866
	7,726	Willis Lease Finance Corp.*		108,473
				6,545,908
		Information Technology—17.2%
	37,322	Adaptec, Inc.*		115,325
	10,926	Agilysys, Inc.		118,547
	12,086	Amtech Systems, Inc.*		115,663
	25,106	Anadigics, Inc.*		126,283
	18,408	Aviat Networks, Inc.*		119,652
	38,259	AXT, Inc.*		167,192
	6,061	Bel Fuse, Inc., Class B		141,949
	3,966	Black Box Corp.		123,700
	41,363	CDC Corp., Class A (Hong Kong)*		110,026
	24,171	China Information Security Technology, Inc.*		145,993
	32,627	Ciber, Inc.*		129,529
	20,504	Cray, Inc.*		138,607
	12,946	CTS Corp.		135,933
	9,523	Electro Scientific Industries, Inc.*		131,132
	10,495	Electronics for Imaging, Inc.*		134,861
	24,022	Entropic Communications, Inc.*		126,836
	12,759	Epicor Software Corp.*		117,128
	19,681	EXFO, Inc. (Canada)*		120,054
	31,523	FSI International, Inc.*		120,418
	19,644	Gerber Scientific, Inc.*		141,437
	19,550	Hutchinson Technology, Inc.*		119,059
	11,076	Imation Corp.*		120,064
	11,038	InfoSpace, Inc.*		115,568
	11,562	Integrated Silicon Solution, Inc.*		142,559
	14,442	Internet Capital Group, Inc.*		142,831
	8,830	Intevac, Inc.*		122,914
	8,868	Kenexa Corp.*		133,109
	32,982	Kopin Corp.*		138,854
	16,837	Kulicke & Soffa Industries, Inc.*		138,063
	33,244	Lattice Semiconductor Corp.*		175,196
	26,416	Mattson Technology, Inc.*		118,872
	8,287	Measurement Specialties, Inc.*		136,487
	12,328	Methode Electronics, Inc., Class A		136,841

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	15,229	Mindspeed Technologies, Inc.*	$	152,747
	14,480	ModusLink Global Solutions, Inc.*		129,306
	12,871	Nanometrics, Inc.*		137,720
	19,345	Ness Technologies, Inc.*		125,162
	33,899	NetList, Inc.*		100,680
	9,765	Newport Corp.*		115,520
	22,262	Nova Measuring Instruments Ltd. (Israel)*		123,331
	18,128	Novatel Wireless, Inc.*		124,177
	53,056	Openwave Systems, Inc.*		118,315
	6,586	Oplink Communications, Inc.*		99,514
	11,263	Orbotech Ltd. (Israel)*		136,282
	10,832	Perficient, Inc.*		135,075
	23,965	Photronics, Inc.*		130,609
	43,739	Planar Systems, Inc.*		114,159
	28,923	Power-One, Inc.*		227,335
	63,234	Qiao Xing Universal Telephone, Inc. (China)*		107,498
	8,550	Radiant Systems, Inc.*		120,298
	5,519	RADWARE Ltd. (Israel)*		109,221
	15,341	Richardson Electronics Ltd.		176,268
	6,043	Rubicon Technology, Inc.*		164,007
	14,237	Rudolph Technologies, Inc.*		135,679
	14,480	Sierra Wireless, Inc. (Canada)*		116,419
	11,412	Silicon Graphics International Corp.*		112,865
	15,827	SMART Modular Technologies (WWH), Inc.*		111,106
	13,806	Smith Micro Software, Inc.*		131,019
	13,021	Sonic Solutions, Inc.*		163,414
	14,050	SonicWALL, Inc.*		142,326
	17,548	StarTek, Inc.*		118,975
	7,053	Super Micro Computer, Inc.*		100,011
	23,105	Technitrol, Inc.		124,767
	6,978	Telestone Technologies Corp.*		95,319
	17,398	THQ, Inc.*		132,225
	13,751	TTM Technologies, Inc.*		149,336
	14,330	Ultra Clean Holdings, Inc.*		141,437
	43,739	UTStarcom, Inc.*		124,656
	7,202	Xyratex Ltd. (Bermuda)*		126,755
	11,337	Zoran Corp.*		110,309
	13,227	Zygo Corp.*		124,995
				9,229,519
		Materials—6.3%
	9,336	A.M. Castle & Co.*		128,090
	19,906	Boise, Inc.*		137,152
	5,407	Brush Engineered Materials, Inc.*		160,750
	9,336	Buckeye Technologies, Inc.*		131,824
	4,901	China Agritech, Inc.*		81,014
	8,718	China Green Agriculture, Inc.*		110,544
	58,108	China Precision Steel, Inc.*		119,702
	23,703	Fronteer Development Group, Inc. (Canada)*		145,299
	36,761	General Moly, Inc.*		137,486
	29,689	General Steel Holdings, Inc. (China)*		110,740

See Notes to Financial Statements.

Schedule of Investments (Continued)

PowerShares Zacks Micro Cap Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	10,513	Gulf Resources, Inc.*	$	113,015
	3,442	Haynes International, Inc.		123,602
	26,584	Headwaters, Inc.*		159,504
	10,271	KapStone Paper and Packaging Corp.*		132,496
	6,941	KMG Chemicals, Inc.		127,992
	23,160	Mercer International, Inc.*		127,612
	11,637	Myers Industries, Inc.		126,378
	7,708	Neenah Paper, Inc.		134,890
	3,742	Olympic Steel, Inc.		118,921
	4,509	Quaker Chemical Corp.		141,898
	10,420	Spartech Corp.*		148,381
	42,074	Sutor Technology Group Ltd.*		115,704
	5,088	Universal Stainless & Alloy Products, Inc.*		118,703
	20,467	US Energy Corp. Wyoming*		125,258
	40,147	Verso Paper Corp.*		210,370
	12,665	Zoltek Cos., Inc.*		124,624
				3,411,949
		Telecommunication Services—0.6%
	26,248	FiberTower Corp.*		142,789
	18,839	IDT Corp., Class B*		186,695
				329,484
		Utilities—0.4%
	6,941	Brookfield Infrastructure Partners LP (Bermuda)		122,509
	12,440	China Natural Gas, Inc.*		113,079
				235,588
		Total Common Stocks and Other Equity Interests (Cost $45,727,166)		53,766,834
		Money Market Fund—0.1%
	68,442	Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $68,442)		68,442
		Total Investments (Cost $45,795,608)—100.1%		53,835,276
		Liabilities in excess of other assets—(0.1%)		(76,968	)
		Net Assets—100.0%	$	53,758,308

Investment Abbreviations:

REIT – Real Estate Investment Trust

Notes to Schedule of Investments:

* Non-income producing security.

See Notes to Financial Statements.

Schedule of Investments

PowerShares Zacks Small Cap Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—15.2%
	3,286	American Greetings Corp., Class A	$	80,704
	2,586	America's Car-Mart, Inc.*		65,503
	7,448	Amerigon, Inc.*		73,065
	190	Biglari Holdings, Inc.*		74,337
	4,952	Brown Shoe Co., Inc.		93,098
	8,404	Caribou Coffee Co., Inc.*		74,375
	2,357	Carter's, Inc.*		75,943
	2,970	Cato Corp. (The), Class A		70,537
	1,698	Cavco Industries, Inc.*		66,511
	3,566	Cooper Tire & Rubber Co.		75,670
	2,036	Core-Mark Holding Co., Inc.*		62,139
	620	Deckers Outdoor Corp.*		87,160
	3,668	Dillard's, Inc., Class A		102,997
	2,676	DineEquity, Inc.*		110,064
	6,144	Dolan Media Co.*		73,052
	7,854	Exide Technologies*		46,653
	3,038	Grand Canyon Education, Inc.*		73,459
	2,102	Group 1 Automotive, Inc.*		65,267
	3,848	iRobot Corp.*		77,653
	1,742	Jo-Ann Stores, Inc.*		76,857
	5,930	Kenneth Cole Productions, Inc., Class A*		73,888
	3,936	Kirkland's, Inc.*		87,655
	5,991	La-Z-Boy, Inc.*		78,123
	2,941	Lincoln Educational Services Corp.*		73,407
	4,062	Maidenform Brands, Inc.*		92,695
	7,333	Retail Ventures, Inc.*		79,343
	3,322	Shoe Carnival, Inc.*		91,886
	12,031	Sinclair Broadcast Group, Inc., Class A*		82,894
	2,167	Skechers U.S.A., Inc., Class A*		83,104
	10,120	Spartan Motors, Inc.		62,440
	7,748	Standard Motor Products, Inc.		82,594
	7,691	Stein Mart, Inc.*		72,911
	3,724	Steinway Musical Instruments, Inc.*		71,352
	8,698	Stoneridge, Inc.*		93,851
	1,214	UniFirst Corp.		59,328
	3,308	Universal Technical Institute, Inc.*		79,260
				2,789,775
		Consumer Staples—3.3%
	2,622	American Dairy, Inc.*		49,818
	1,783	American Italian Pasta Co., Class A*		69,947
	1,322	Boston Beer Co., Inc., Class A*		75,367
	4,780	China-Biotics, Inc.*		85,179
	4,140	Chiquita Brands International, Inc.*		62,266
	1,452	J & J Snack Foods Corp.		67,649
	3,942	Revlon, Inc., Class A*		69,064
	7,522	Schiff Nutrition International, Inc.		53,331
	2,250	Seneca Foods Corp., Class A*		73,890
				606,511

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
		Energy—4.8%
	7,837	Crosstex Energy, Inc.*	$	70,768
	2,364	Global Partners LP		54,230
	3,476	Gulf Island Fabrication, Inc.		83,320
	5,882	Gulfport Energy Corp.*		73,525
	7,746	Houston American Energy Corp.		101,473
	926	Inergy Holdings LP		67,737
	966	Lufkin Industries, Inc.		82,236
	3,865	Natural Gas Services Group, Inc.*		69,299
	1,359	Overseas Shipholding Group, Inc.		68,031
	3,920	Patriot Coal Corp.*		77,185
	3,809	Stone Energy Corp.*		62,087
	5,804	TETRA Technologies, Inc.*		71,331
				881,222
		Financials—12.3%
	2,386	Alliance Financial Corp.		71,508
	2,184	American Physicians Capital, Inc.		73,033
	3,510	AMERISAFE, Inc.*		60,021
	5,074	AmTrust Financial Services, Inc.		69,159
	1,508	BancFirst Corp.		66,563
	6,504	Cardinal Financial Corp.		71,219
	4,340	CNA Surety Corp.*		72,782
	3,340	eHealth, Inc.*		45,791
	3,352	EZCORP, Inc., Class A*		69,420
	3,386	FBL Financial Group, Inc., Class A		87,494
	3,274	Forestar Group, Inc.*		73,796
	1,530	Infinity Property & Casualty Corp.		70,579
	7,818	JMP Group, Inc.		60,511
	3,060	Life Partners Holdings, Inc.		70,686
	4,456	MarketAxess Holdings, Inc.		70,048
	9,000	Meadowbrook Insurance Group, Inc.		71,100
	1,424	Navigators Group, Inc. (The)*		57,145
	3,641	Nelnet, Inc., Class A		72,674
	6,632	Ocwen Financial Corp.*		76,600
	5,334	Oriental Financial Group, Inc.		89,184
	7,454	Provident New York Bancorp		76,553
	4,235	Renasant Corp.		70,005
	5,066	Sandy Spring Bancorp, Inc.		88,402
	3,202	Southside Bancshares, Inc.		69,099
	5,064	SWS Group, Inc.		56,058
	8,562	United America Indemnity Ltd., Class A*		81,339
	4,621	United Financial Bancorp, Inc.		64,602
	2,802	Unitrin, Inc.		81,959
	2,240	W.P. Carey & Co. LLC		68,947
	7,438	Westfield Financial, Inc.		67,686
	4,634	Wilmington Trust Corp.		80,307
	1,508	World Acceptance Corp.*		53,202
				2,257,472

See Notes to Financial Statements.

Schedule of Investments (Continued)

PowerShares Zacks Small Cap Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
		Health Care—9.6%
	3,240	Align Technology, Inc.*	$	55,015
	1,669	Almost Family, Inc.*		70,699
	4,804	American Dental Partners, Inc.*		61,875
	8,358	BioScrip, Inc.*		74,720
	3,150	Cantel Medical Corp.		62,874
	9,028	Celera Corp.*		67,439
	12,554	Continucare Corp.*		42,056
	3,250	Cyberonics, Inc.*		63,472
	6,088	Enzon Pharmaceuticals, Inc.*		64,411
	1,868	Genoptix, Inc.*		72,273
	4,159	Given Imaging Ltd. (Israel)*		87,256
	2,829	Hi-Tech Pharmacal Co., Inc.*		68,830
	1,744	ICU Medical, Inc.*		62,104
	4,568	Impax Laboratories, Inc.*		82,681
	6,458	Jazz Pharmaceuticals, Inc.*		65,484
	2,829	Martek Biosciences Corp.*		62,323
	10,858	Maxygen, Inc.*		69,600
	4,478	Medical Action Industries, Inc.*		53,154
	5,068	Omnicell, Inc.*		67,658
	11,865	OraSure Technologies, Inc.*		75,224
	3,734	PharMerica Corp.*		72,066
	10,330	Pozen, Inc.*		111,874
	2,091	RehabCare Group, Inc.*		59,635
	10,120	Sinovac Biotech Ltd. (China)*		58,595
	2,900	Targacept, Inc.*		69,020
	2,182	Zoll Medical Corp.*		66,660
				1,766,998
		Industrials—21.2%
	5,787	3D Systems Corp.*		90,046
	2,948	AAON, Inc.		71,165
	3,128	ABM Industries, Inc.		67,221
	6,380	Aircastle Ltd. (Bermuda)		76,624
	1,192	Allegiant Travel Co.*		61,305
	883	Ameron International Corp.		61,271
	4,410	Apogee Enterprises, Inc.		60,593
	3,612	Beacon Roofing Supply, Inc.*		80,186
	8,411	Cenveo, Inc.*		72,082
	3,768	Chart Industries, Inc.*		86,626
	5,548	China Fire & Security Group, Inc.*		75,897
	5,176	Comfort Systems USA, Inc.		72,878
	1,800	Consolidated Graphics, Inc.*		75,438
	2,892	Cornell Cos., Inc.*		79,530
	1,508	CoStar Group, Inc.*		66,277
	8,202	Diamond Management & Technology Consultants, Inc.		66,600
	5,062	DynCorp International, Inc., Class A*		87,066
	10,530	Excel Maritime Carriers Ltd. (Liberia)*		74,974
	2,260	Exponent, Inc.*		67,371
	9,360	Federal Signal Corp.		75,442

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	7,448	Greenbrier Cos., Inc.*	$	121,253
	5,145	Griffon Corp.*		72,544
	10,226	Hawaiian Holdings, Inc.*		72,605
	4,962	Herley Industries, Inc.*		72,693
	12,814	Horizon Lines, Inc., Class A		70,093
	2,598	ICF International, Inc.*		60,170
	3,128	Jinpan International Ltd. (China)		54,677
	3,984	Kadant, Inc.*		79,720
	5,390	Knoll, Inc.		75,352
	2,250	LB Foster Co., Class A*		66,600
	13,637	Metalico, Inc.*		90,004
	2,484	Mueller Industries, Inc.		73,651
	2,540	Northwest Pipe Co.*		61,265
	8,698	On Assignment, Inc.*		61,147
	3,211	Orion Marine Group, Inc.*		60,881
	7,978	Pinnacle Airlines Corp.*		58,319
	2,076	Powell Industries, Inc.*		69,712
	2,126	Raven Industries, Inc.		64,545
	7,677	Safe Bulkers, Inc. (Marshall Islands)		61,109
	4,716	Schawk, Inc.		89,368
	5,861	Seaspan Corp. (Hong Kong)		68,632
	10,774	SFN Group, Inc.*		92,118
	5,332	SmartHeat, Inc.*		44,735
	3,742	Standard Parking Corp.*		63,202
	3,197	Sterling Construction Co., Inc.*		55,947
	2,712	Sun Hydraulics Corp.		75,963
	2,539	Tennant Co.		87,570
	1,195	Triumph Group, Inc.		92,684
	4,183	TrueBlue, Inc.*		66,050
	3,188	Tutor Perini Corp.*		77,373
	7,582	United Rentals, Inc.*		108,878
	1,114	United Stationers, Inc.*		68,199
	1,789	Universal Forest Products, Inc.		75,227
				3,880,878
		Information Technology—22.7%
	3,947	Acxiom Corp.*		75,309
	7,224	Agilysys, Inc.		78,380
	4,826	Ariba, Inc.*		68,867
	3,510	Bottomline Technologies, Inc.*		61,074
	5,108	CEVA, Inc.*		62,522
	3,712	Cognex Corp.		77,618
	4,692	Cohu, Inc.		75,776
	3,442	Constant Contact, Inc.*		87,943
	1,936	Cymer, Inc.*		66,114
	6,324	Digi International, Inc.*		67,730
	3,644	Diodes, Inc.*		78,237
	10,802	DivX, Inc.*		90,305
	7,146	Echelon Corp.*		67,530
	3,162	EchoStar Corp., Class A*		60,742
	5,198	Electro Rent Corp.		74,279

See Notes to Financial Statements.

Schedule of Investments (Continued)

PowerShares Zacks Small Cap Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	8,640	Exar Corp.*	$	63,850
	5,098	EZchip Semiconductor Ltd. (Israel)*		99,233
	12,388	Gerber Scientific, Inc.*		89,194
	6,548	InfoSpace, Inc.*		68,558
	5,279	Insight Enterprises, Inc.*		79,343
	10,520	Integrated Silicon Solution, Inc.*		129,712
	8,180	Ixia*		83,845
	4,670	KVH Industries, Inc.*		70,377
	2,907	Manhattan Associates, Inc.*		83,315
	3,308	Mellanox Technologies Ltd. (Israel)*		82,038
	5,085	Mercury Computer Systems, Inc.*		65,393
	5,524	Methode Electronics, Inc., Class A		61,316
	8,134	Micrel, Inc.		94,924
	2,943	Monolithic Power Systems, Inc.*		72,545
	2,557	Multi-Fineline Electronix, Inc.*		66,277
	6,982	Nanometrics, Inc.*		74,707
	4,093	Oplink Communications, Inc.*		61,845
	5,172	OPNET Technologies, Inc.		83,062
	1,823	Pegasystems, Inc.		57,734
	6,899	Pericom Semiconductor Corp.*		80,580
	10,564	PRGX Global, Inc.*		71,413
	8,090	RadiSys Corp.*		79,201
	3,967	RADWARE Ltd. (Israel)*		78,507
	2,776	Rofin-Sinar Technologies, Inc.*		73,731
	8,161	Sapient Corp.		83,487
	7,838	Smith Micro Software, Inc.*		74,383
	7,971	SonicWALL, Inc.*		80,746
	2,914	Sourcefire, Inc.*		65,186
	3,046	Standard Microsystems Corp.*		78,221
	2,639	Stratasys, Inc.*		62,914
	11,908	Symmetricom, Inc.*		78,950
	4,057	Tekelec*		73,553
	2,656	TNS, Inc.*		68,923
	5,657	Travelzoo, Inc.*		112,801
	10,118	TriQuint Semiconductor, Inc.*		76,290
	3,245	Tyler Technologies, Inc.*		55,295
	4,454	Ultratech, Inc.*		65,429
	2,101	Unisys Corp.*		58,870
	1,912	Veeco Instruments, Inc.*		84,109
	6,808	Virtusa Corp.*		70,054
				4,152,337
		Materials—7.3%
	2,172	Arch Chemicals, Inc.		73,870
	4,242	China Green Agriculture, Inc.*		53,789
	1,253	Clearwater Paper Corp.*		79,791
	7,538	Ferro Corp.*		82,315
	3,111	Innophos Holdings, Inc.		88,632
	6,232	Innospec, Inc.		82,948
	1,732	Kaiser Aluminum Corp.		69,609
	2,187	Koppers Holdings, Inc.		61,608

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	4,614	LSB Industries, Inc.*	$	81,945
	4,364	Neenah Paper, Inc.		76,370
	10,734	Omnova Solutions, Inc.*		82,115
	3,481	Quaker Chemical Corp.		109,547
	806	Schweitzer-Mauduit International, Inc.		45,877
	11,506	Silvercorp Metals, Inc. (Canada)		94,694
	6,042	Stillwater Mining Co.*		102,110
	6,886	Wausau Paper Corp.*		60,941
	2,958	Westlake Chemical Corp.		83,061
				1,329,222
		Telecommunication Services—0.7%
	10,248	General Communication, Inc., Class A*		63,025
	4,113	Otelco, Inc.		65,068
				128,093
		Utilities—2.9%
	1,844	American States Water Co.		68,818
	2,048	Chesapeake Utilities Corp.		61,686
	3,160	El Paso Electric Co.*		67,150
	1,880	Laclede Group, Inc. (The)		64,070
	5,225	PNM Resources, Inc.		71,008
	3,116	Portland General Electric Co.		61,946
	2,195	Southwest Gas Corp.		68,265
	2,238	UIL Holdings Corp.		64,969
				527,912
		Total Common Stocks and Other Equity Interests (Cost $14,484,736)		18,320,420
		Money Market Fund—0.3%
	53,156	Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $53,156)		53,156
		Total Investments (Cost $14,537,892)—100.3%		18,373,576
		Liabilities in excess of other assets—(0.3%)		(51,324	)
		Net Assets—100.0%	$	18,322,252

Notes to Schedule of Investments:

* Non-income producing security.

See Notes to Financial Statements.

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Statements of Assets and Liabilities

April 30, 2010

	PowerShares Dynamic Large Cap Growth Portfolio			PowerShares Dynamic Large Cap Portfolio			PowerShares Dynamic Large Cap Value Portfolio			PowerShares Dynamic Mid Cap Growth Portfolio			PowerShares Dynamic Mid Cap Portfolio			PowerShares Dynamic Mid Cap Value Portfolio
ASSETS:
Investments, at value	$	230,439,037		$	38,390,478		$	349,338,681		$	128,174,502		$	25,393,810		$	43,864,123
Receivables:
Dividends		125,460			43,725			656,058			8,699			5,622			17,106
Investments sold		—			—			—			—			—			—
Expense waivers		—			6,938			—			306			8,426			6,898
Other assets		3,002			3,001			3,000			3,001			3,000			3,000
Total Assets		230,567,499			38,444,142			349,997,739			128,186,508			25,410,858			43,891,127
LIABILITES:
Due to custodian		6,800			4,694			480,635			6,305			6,064			6,063
Payables:
Shares repurchased		—			—			—			—			—			—
Expense recapture		—			—			1,123			—			—			—
Accrued advisory fees		96,623			16,255			144,413			53,525			10,618			18,661
Accrued expenses		129,767			46,871			106,170			82,364			41,351			47,913
Total Liabilities		233,190			67,820			732,341			142,194			58,033			72,637
NET ASSETS	$	230,334,309		$	38,376,322		$	349,265,398		$	128,044,314		$	25,352,825		$	43,818,490
NET ASSETS CONSIST OF:
Shares of beneficial interest	$	422,797,458		$	41,463,523		$	406,086,577		$	260,987,065		$	28,990,931		$	79,204,220
Undistributed net investment income (loss)		213,527			134,136			1,901,210			(7,909	)		31,725			44,286
Accumulated net realized loss on investments and foreign currency related transactions		(228,446,457	)		(8,490,091	)		(92,357,663	)		(155,387,701	)		(8,127,091	)		(40,621,034	)
Net unrealized appreciation on investments		35,769,781			5,268,754			33,635,274			22,452,859			4,457,260			5,191,018
Net Assets	$	230,334,309		$	38,376,322		$	349,265,398		$	128,044,314		$	25,352,825		$	43,818,490
Shares outstanding (unlimited amount authorized, $0.01 par value)		15,450,000			1,650,000			19,350,000			6,700,000			1,100,000			2,850,000
Net asset value	$	14.91		$	23.26		$	18.05		$	19.11		$	23.05		$	15.37
Share price	$	15.05		$	23.26		$	18.18		$	19.32		$	23.04		$	15.36
Investments, at cost	$	194,669,256		$	33,121,724		$	315,703,407		$	105,721,643		$	20,936,550		$	38,673,105

See Notes to Financial Statements.

	PowerShares Dynamic Small Cap Growth Portfolio			PowerShares Dynamic Small Cap Portfolio			PowerShares Dynamic Small Cap Value Portfolio			PowerShares FTSE NASDAQ Small Cap Portfolio			PowerShares Zacks Micro Cap Portfolio			PowerShares Zacks Small Cap Portfolio
ASSETS:
Investments, at value	$	32,523,532		$	18,999,010		$	72,511,387		$	1,263,986		$	53,835,276		$	18,373,576
Receivables:
Dividends		860			4,068			24,533			884			6,745			2,633
Investments sold		3,040			—			—			1,291,098			4,960			—
Expense waivers		8,055			8,167			6,127			—			6,528			6,660
Other assets		3,002			3,001			3,000			—			3,000			3,000
Total Assets		32,538,489			19,014,246			72,545,047			2,555,968			53,856,509			18,385,869
LIABILITES:
Due to custodian		6,064			6,064			6,071			4,139			6,064			6,064
Payables:
Shares repurchased		—			—			—			1,282,382			—			—
Expense recapture		—			—			—			—			—			—
Accrued advisory fees		13,570			8,174			30,411			1,433			21,590			8,279
Accrued expenses		46,353			39,933			55,461			—			70,547			49,274
Total Liabilities		65,987			54,171			91,943			1,287,954			98,201			63,617
NET ASSETS	$	32,472,502		$	18,960,075		$	72,453,104		$	1,268,014		$	53,758,308		$	18,322,252
NET ASSETS CONSIST OF:
Shares of beneficial interest	$	70,655,869		$	22,580,348		$	102,181,898		$	1,613,290		$	120,195,963		$	46,270,595
Undistributed net investment income (loss)		(3,517	)		(2,868	)		68,424			(453	)		114,810			(28,645	)
Accumulated net realized loss on investments and foreign currency related transactions		(42,242,759	)		(6,388,834	)		(39,470,993	)		(419,996	)		(74,592,133	)		(31,755,382	)
Net unrealized appreciation on investments		4,062,909			2,771,429			9,673,775			75,173			8,039,668			3,835,684
Net Assets	$	32,472,502		$	18,960,075		$	72,453,104		$	1,268,014		$	53,758,308		$	18,322,252
Shares outstanding (unlimited amount authorized, $0.01 par value)		2,300,000			900,000			4,950,000			50,000			4,600,000			900,000
Net asset value	$	14.12		$	21.07		$	14.64		$	25.36		$	11.69		$	20.36
Share price	$	14.10		$	21.05		$	14.62		$	25.34		$	11.68		$	20.32
Investments, at cost	$	28,460,623		$	16,227,581		$	62,837,612		$	1,188,813		$	45,795,608		$	14,537,892

Statements of Operations

Year Ended April 30, 2010

	PowerShares Dynamic Large Cap Growth Portfolio			PowerShares Dynamic Large Cap Portfolio			PowerShares Dynamic Large Cap Value Portfolio			PowerShares Dynamic Mid Cap Growth Portfolio			PowerShares Dynamic Mid Cap Portfolio			PowerShares Dynamic Mid Cap Value Portfolio
INVESTMENT INCOME:
Dividend income	$	2,839,115		$	756,879		$	9,726,570		$	864,447		$	345,497		$	1,015,871
Foreign withholding tax		—			—			—			—			(10	)		(78	)
Total Income		2,839,115			756,879			9,726,570			864,447			345,487			1,015,793
EXPENSES:
Advisory fees		1,337,294			191,981			1,577,934			658,924			109,792			212,719
Sub-licensing		80,237			19,198			94,676			39,535			10,979			12,763
Accounting & Administration fees		68,080			64,668			77,291			71,034			64,668			64,668
Printing		56,062			3,308			25,889			27,670			2,217			8,311
Professional fees		41,353			31,331			41,608			35,806			30,613			31,600
Custodian & transfer agent fees		21,273			16,276			26,027			12,309			16,022			12,790
Trustees		13,284			5,365			14,592			8,678			4,784			5,497
Listing fee and expenses		2,801			190			2,801			2,801			190			2,801
Other expenses		13,076			4,595			21,162			9,433			4,212			5,828
Total Expenses		1,633,460			336,912			1,881,980			866,190			243,477			356,977
(Waivers) and/or Recapture		—			(87,338	)		92,287			(35,946	)		(100,746	)		(88,952	)
Net Expenses		1,633,460			249,574			1,974,267			830,244			142,731			268,025
Net Investment Income (Loss)		1,205,655			507,305			7,752,303			34,203			202,756			747,768
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) from:
Investments		(21,020,881	)		(2,036,315	)		(15,724,637	)		(14,489,807	)		(345,193	)		(3,353,963	)
In-kind redemptions		56,514,529			5,287,497			58,503,585			35,256,779			5,274,094			12,214,717
Foreign currency related transactions		—			—			—			—			—			—
Net realized gain (loss)		35,493,648			3,251,182			42,778,948			20,766,972			4,928,901			8,860,754
Net change in unrealized appreciation on:
Investments		47,840,479			7,535,604			45,537,586			21,155,475			2,726,518			4,919,548
Net realized and unrealized gain on investments		83,334,127			10,786,786			88,316,534			41,922,447			7,655,419			13,780,302
Net increase in net assets resulting from operations	$	84,539,782		$	11,294,091		$	96,068,837		$	41,956,650		$	7,858,175		$	14,528,070

See Notes to Financial Statements.

	PowerShares Dynamic Small Cap Growth Portfolio			PowerShares Dynamic Small Cap Portfolio			PowerShares Dynamic Small Cap Value Portfolio			PowerShares FTSE NASDAQ Small Cap Portfolio			PowerShares Zacks Micro Cap Portfolio			PowerShares Zacks Small Cap Portfolio
INVESTMENT INCOME:
Dividend income	$	334,437		$	213,752		$	925,298		$	14,495		$	524,842		$	215,236
Foreign withholding tax		—			—			—			(180	)		(77	)		(191	)
Total Income		334,437			213,752			925,298			14,315			524,765			215,045
EXPENSES:
Advisory fees		160,859			86,009			340,392			14,740			242,462			107,201
Sub-licensing		9,652			8,601			20,423			—			48,493			21,440
Accounting & Administration fees		64,668			64,668			64,668			—			64,668			64,668
Printing		7,299			2,073			14,810			—			15,590			4,164
Professional fees		31,207			30,353			32,688			—			31,906			30,748
Custodian & transfer agent fees		15,419			15,772			14,417			—			20,474			16,572
Trustees		5,183			4,612			6,339			—			5,742			4,784
Listing fee and expenses		2,801			190			2,801			—			2,801			2,801
Other expenses		5,661			3,696			6,565			—			17,009			7,914
Total Expenses		302,749			215,974			503,103			14,740			449,145			260,292
(Waivers) and/or Recapture		(100,066	)		(104,162	)		(74,209	)		—			(109,697	)		(110,211	)
Net Expenses		202,683			111,812			428,894			14,740			339,448			150,081
Net Investment Income (Loss)		131,754			101,940			496,404			(425	)		185,317			64,964
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) from:
Investments		(2,435,029	)		(1,020,282	)		1,738,084			(109,181	)		(4,194,979	)		(5,536,119	)
In-kind redemptions		10,245,107			5,547,196			19,833,941			307,092			7,367,854			4,221,622
Foreign currency related transactions		—			—			—			85			—			—
Net realized gain (loss)		7,810,078			4,526,914			21,572,025			197,996			3,172,875			(1,314,497	)
Net change in unrealized appreciation on:
Investments		1,643,478			1,470,837			1,754,558			666,158			14,647,681			8,443,309
Net realized and unrealized gain on investments		9,453,556			5,997,751			23,326,583			864,154			17,820,556			7,128,812
Net increase in net assets resulting from operations	$	9,585,310		$	6,099,691		$	23,822,987		$	863,729		$	18,005,873		$	7,193,776

Statements of Changes in Net Assets

	PowerShares Dynamic Large Cap Growth Portfolio						PowerShares Dynamic Large Cap Portfolio						PowerShares Dynamic Large Cap Value Portfolio
	Year Ended April 30, 2010			Year Ended April 30, 2009			Year Ended April 30, 2010			Year Ended April 30, 2009			Year Ended April 30, 2010			Year Ended April 30, 2009
OPERATIONS:
Net investment income (loss)	$	1,205,655		$	2,616,591		$	507,305		$	526,095		$	7,752,303		$	6,449,448
Net realized gain (loss) on investments and foreign currency related transactions		35,493,648			(209,521,493	)		3,251,182			(10,453,800	)		42,778,948			(86,285,630	)
Net change in unrealized appreciation (depreciation) on investments		47,840,479			(5,830,350	)		7,535,604			(2,016,677	)		45,537,586			(3,795,554	)
Net increase (decrease) in net assets resulting from operations		84,539,782			(212,735,252	)		11,294,091			(11,944,382	)		96,068,837			(83,631,736	)
Undistributed net investment income (loss) included in the price of units issued and redeemed		(99,913	)		(483,455	)		(11,223	)		60,111			103,798			385,582
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income		(2,004,571	)		(2,172,246	)		(600,837	)		(365,160	)		(7,967,039	)		(4,825,414	)
Net realized gains		—			—			—			—			—			—
Return of capital		—			—			—			—			—			—
Total distributions to shareholders		(2,004,571	)		(2,172,246	)		(600,837	)		(365,160	)		(7,967,039	)		(4,825,414	)
SHAREHOLDER TRANSACTIONS:
Proceeds from shares sold		210,435,034			373,056,998			25,831,453			44,327,546			345,199,877			275,942,116
Value of shares repurchased		(343,808,377	)		(542,585,810	)		(31,503,303	)		(24,585,380	)		(346,735,324	)		(177,275,109	)
Net income equalization		99,913			483,455			11,223			(60,111	)		(103,798	)		(385,582	)
Net increase (decrease) in net assets resulting from shares transactions		(133,273,430	)		(169,045,357	)		(5,660,627	)		19,682,055			(1,639,245	)		98,281,425
Increase (Decrease) in Net Assets		(50,838,132	)		(384,436,310	)		5,021,404			7,432,624			86,566,351			10,209,857
NET ASSETS:
Beginning of year		281,172,441			665,608,751			33,354,918			25,922,294			262,699,047			252,489,190
End of year	$	230,334,309		$	281,172,441		$	38,376,322		$	33,354,918		$	349,265,398		$	262,699,047
Undistributed net investment income (loss) at end of year	$	213,527		$	1,012,443		$	134,136		$	227,668		$	1,901,210		$	2,103,695
CHANGES IN SHARES OUTSTANDING:
Shares sold		16,300,000			24,800,000			1,300,000			2,200,000			21,400,000			18,100,000
Shares repurchased		(26,350,000	)		(37,700,000	)		(1,550,000	)		(1,300,000	)		(21,450,000	)		(11,800,000	)
Shares outstanding, beginning of year		25,500,000			38,400,000			1,900,000			1,000,000			19,400,000			13,100,000
Shares outstanding, end of year		15,450,000			25,500,000			1,650,000			1,900,000			19,350,000			19,400,000

See Notes to Financial Statements.

	PowerShares Dynamic Mid Cap Growth Portfolio						PowerShares Dynamic Mid Cap Portfolio						PowerShares Dynamic Mid Cap Value Portfolio
	Year Ended April 30, 2010			Year Ended April 30, 2009			Year Ended April 30, 2010			Year Ended April 30, 2009			Year Ended April 30, 2010			Year Ended April 30, 2009
OPERATIONS:
Net investment income (loss)	$	34,203		$	(179,614	)	$	202,756		$	127,257		$	747,768		$	1,065,635
Net realized gain (loss) on investments and foreign currency related transactions		20,766,972			(141,645,958	)		4,928,901			(9,039,856	)		8,860,754			(32,014,006	)
Net change in unrealized appreciation (depreciation) on investments		21,155,475			(5,415,786	)		2,726,518			1,438,191			4,919,548			5,502,827
Net increase (decrease) in net assets resulting from operations		41,956,650			(147,241,358	)		7,858,175			(7,474,408	)		14,528,070			(25,445,544	)
Undistributed net investment income (loss) included in the price of units issued and redeemed		(25,821	)		126,522			(1,870	)		5,421			(12,087	)		(58,260	)
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income		(33,475	)		—			(182,736	)		(132,595	)		(858,787	)		(992,947	)
Net realized gains		—			—			—			—			—			—
Return of capital		(67,025	)		—			—			—			—			—
Total distributions to shareholders		(100,500	)		—			(182,736	)		(132,595	)		(858,787	)		(992,947	)
SHAREHOLDER TRANSACTIONS:
Proceeds from shares sold		145,511,108			376,214,214			20,468,037			25,177,425			52,444,863			67,494,471
Value of shares repurchased		(199,360,714	)		(479,081,004	)		(20,719,244	)		(25,110,529	)		(61,351,368	)		(81,380,622	)
Net income equalization		25,821			(126,522	)		1,870			(5,421	)		12,087			58,260
Net increase (decrease) in net assets resulting from shares transactions		(53,823,785	)		(102,993,312	)		(249,337	)		61,475			(8,894,418	)		(13,827,891	)
Increase (Decrease) in Net Assets		(11,993,456	)		(250,108,148	)		7,424,232			(7,540,107	)		4,762,778			(40,324,642	)
NET ASSETS:
Beginning of year		140,037,770			390,145,918			17,928,593			25,468,700			39,055,712			79,380,354
End of year	$	128,044,314		$	140,037,770		$	25,352,825		$	17,928,593		$	43,818,490		$	39,055,712
Undistributed net investment income (loss) at end of year	$	(7,909	)	$	(8,637	)	$	31,725		$	11,690		$	44,286		$	155,305
CHANGES IN SHARES OUTSTANDING:
Shares sold		9,250,000			19,500,000			1,050,000			1,300,000			4,000,000			4,700,000
Shares repurchased		(12,650,000	)		(26,900,000	)		(1,050,000	)		(1,200,000	)		(4,650,000	)		(5,900,000	)
Shares outstanding, beginning of year		10,100,000			17,500,000			1,100,000			1,000,000			3,500,000			4,700,000
Shares outstanding, end of year		6,700,000			10,100,000			1,100,000			1,100,000			2,850,000			3,500,000

Statements of Changes in Net Assets (Continued)

	PowerShares Dynamic Small Cap Growth Portfolio						PowerShares Dynamic Small Cap Portfolio						PowerShares Dynamic Small Cap Value Portfolio
	Year Ended April 30, 2010			Year Ended April 30, 2009			Year Ended April 30, 2010			Year Ended April 30, 2009			Year Ended April 30, 2010			Year Ended April 30, 2009
OPERATIONS:
Net investment income (loss)	$	131,754		$	44,573		$	101,940		$	70,485		$	496,404		$	759,918
Net realized gain (loss) on investments and foreign currency related transactions		7,810,078			(20,517,559	)		4,526,914			(7,314,141	)		21,572,025			(42,648,592	)
Net change in unrealized appreciation (depreciation) on investments		1,643,478			1,656,821			1,470,837			996,503			1,754,558			7,267,334
Net increase (decrease) in net assets resulting from operations		9,585,310			(18,816,165	)		6,099,691			(6,247,153	)		23,822,987			(34,621,340	)
Undistributed net investment income (loss) included in the price of units issued and redeemed		28,509			(11,854	)		1,575			9,361			5,750			16,498
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income		(193,877	)		—			(130,765	)		(45,596	)		(464,268	)		(695,379	)
Net realized gains		—			—			—			—			—			—
Return of capital		(41,471	)		—			(12,826	)		—			—			—
Total distributions to shareholders		(235,348	)		—			(143,591	)		(45,596	)		(464,268	)		(695,379	)
SHAREHOLDER TRANSACTIONS:
Proceeds from shares sold		42,804,831			56,905,093			23,140,278			28,838,189			100,268,941			116,494,999
Value of shares repurchased		(51,166,233	)		(58,451,236	)		(23,666,253	)		(25,329,007	)		(113,427,132	)		(110,592,430	)
Net income equalization		(28,509	)		11,854			(1,575	)		(9,361	)		(5,750	)		(16,498	)
Net increase (decrease) in net assets resulting from shares transactions		(8,389,911	)		(1,534,289	)		(527,550	)		3,499,821			(13,163,941	)		5,886,071
Increase (Decrease) in Net Assets		988,560			(20,362,308	)		5,430,125			(2,783,567	)		10,200,528			(29,414,150	)
NET ASSETS:
Beginning of year		31,483,942			51,846,250			13,529,950			16,313,517			62,252,576			91,666,726
End of year	$	32,472,502		$	31,483,942		$	18,960,075		$	13,529,950		$	72,453,104		$	62,252,576
Undistributed net investment income (loss) at end of year	$	(3,517	)	$	44,573		$	(2,868	)	$	24,889		$	68,424		$	64,539
CHANGES IN SHARES OUTSTANDING:
Shares sold		3,600,000			4,200,000			1,350,000			1,600,000			8,400,000			9,200,000
Shares repurchased		(4,300,000	)		(4,500,000	)		(1,350,000	)		(1,400,000	)		(9,450,000	)		(9,000,000	)
Shares outstanding, beginning of year		3,000,000			3,300,000			900,000			700,000			6,000,000			5,800,000
Shares outstanding, end of year		2,300,000			3,000,000			900,000			900,000			4,950,000			6,000,000

See Notes to Financial Statements.

	PowerShares FTSE NASDAQ Small Cap Portfolio						PowerShares Zacks Micro Cap Portfolio						PowerShares Zacks Small Cap Portfolio
	Year Ended April 30, 2010			Year Ended April 30, 2009			Year Ended April 30, 2010			Year Ended April 30, 2009			Year Ended April 30, 2010			Year Ended April 30, 2009
OPERATIONS:
Net investment income (loss)	$	(425	)	$	5,718		$	185,317		$	730,416		$	64,964		$	162,057
Net realized gain (loss) on investments and foreign currency related transactions		197,996			(474,057	)		3,172,875			(34,834,317	)		(1,314,497	)		(16,420,390	)
Net change in unrealized appreciation (depreciation) on investments		666,158			(581,586	)		14,647,681			928,684			8,443,309			984,972
Net increase (decrease) in net assets resulting from operations		863,729			(1,049,925	)		18,005,873			(33,175,217	)		7,193,776			(15,273,361	)
Undistributed net investment income (loss) included in the price of units issued and redeemed		374			(243	)		39,210			24,697			27,197			26,245
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income		(1,663	)		(15,180	)		(402,300	)		(1,156,194	)		(81,588	)		(210,193	)
Net realized gains		—			(9	)		—			—			—			—
Return of capital		—			—			—			—			—			(20,801	)
Total distributions to shareholders		(1,663	)		(15,189	)		(402,300	)		(1,156,194	)		(81,588	)		(230,994	)
SHAREHOLDER TRANSACTIONS:
Proceeds from shares sold		1,077,287			3,240,574			42,740,058			62,276,992			10,084,697			26,838,752
Value of shares repurchased		(2,359,669	)		(3,050,022	)		(53,545,721	)		(75,052,710	)		(17,663,023	)		(32,175,789	)
Net income equalization		(374	)		243			(39,210	)		(24,697	)		(27,197	)		(26,245	)
Net increase (decrease) in net assets resulting from shares transactions		(1,282,756	)		190,795			(10,844,873	)		(12,800,415	)		(7,605,523	)		(5,363,282	)
Increase (Decrease) in Net Assets		(420,316	)		(874,562	)		6,797,910			(47,107,129	)		(466,138	)		(20,841,392	)
NET ASSETS:
Beginning of year		1,688,330			2,562,892			46,960,398			94,067,527			18,788,390			39,629,782
End of year	$	1,268,014		$	1,688,330		$	53,758,308		$	46,960,398		$	18,322,252		$	18,788,390
Undistributed net investment income (loss) at end of year	$	(453	)	$	1,474		$	114,810		$	117,342		$	(28,645	)	$	(3,195	)
CHANGES IN SHARES OUTSTANDING:
Shares sold		50,000			200,000			4,550,000			6,200,000			600,000			1,400,000
Shares repurchased		(100,000	)		(200,000	)		(5,750,000	)		(7,300,000	)		(1,000,000	)		(1,800,000	)
Shares outstanding, beginning of year		100,000			100,000			5,800,000			6,900,000			1,300,000			1,700,000
Shares outstanding, end of year		50,000			100,000			4,600,000			5,800,000			900,000			1,300,000

Financial Highlights

PowerShares Dynamic Large Cap Growth Portfolio

	Year Ended April 30,
	2010			2009			2008			2007			2006
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	11.03		$	17.33		$	17.46		$	16.35		$	14.11
Net investment income (loss)**		0.06			0.08			0.07			0.02			(0.01	)
Net realized and unrealized gain (loss) on investments		3.91			(6.30	)		(0.16	)		1.11			2.25
Total from investment operations		3.97			(6.22	)		(0.09	)		1.13			2.24
Distributions to shareholders from:
Net investment income		(0.09	)		(0.08	)		(0.04	)		(0.02	)		0.00	^(a)
Return of capital		—			—			—			0.00	^(a)		—
Total distributions		(0.09	)		(0.08	)		(0.04	)		(0.02	)		—
Net asset value at end of period	$	14.91		$	11.03		$	17.33		$	17.46		$	16.35
Share price at end of period***	$	15.05		$	11.03
NET ASSET VALUE, TOTAL RETURN****		36.15	%		(35.93	)%		(0.56	)%		6.92	%		15.89	%
SHARE PRICE TOTAL RETURN****		36.15	%		(35.93	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	230,334		$	281,172		$	665,609		$	277,598		$	148,750
Ratio to average net assets of:
Expenses, after (Waivers) and/or Recapture		0.61	%		0.61	%		0.63	%		0.63	%		0.64	%
Expenses, prior to (Waivers) and/or Recapture		0.61	%		0.60	%		0.60	%		0.68	%		0.80	%
Net investment income (loss), after (Waivers) and/or Recapture		0.45	%		0.60	%		0.37	%		0.13	%		(0.04	)%
Portfolio turnover rate †		67	%		88	%		46	%		57	%		73	%
Undistributed net investment income (loss) included in price of units issued and redeemed**#	$	(0.00	)^(a)	$	(0.02	)	$	0.02		$	0.00	^(a)		—

PowerShares Dynamic Large Cap Portfolio

	Year Ended April 30,									For the Period December 1, 2006* Through
	2010			2009			2008			April 30, 2007
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	17.56		$	25.92		$	27.00		$	25.18
Net investment income**		0.27			0.34			0.27			0.12
Net realized and unrealized gain (loss) on investments		5.74			(8.44	)		(1.14	)		1.78
Total from investment operations		6.01			(8.10	)		(0.87	)		1.90
Distributions to shareholders from:
Net investment income		(0.31	)		(0.26	)		(0.21	)		(0.08	)
Net asset value at end of period	$	23.26		$	17.56		$	25.92		$	27.00
Share price at end of period***	$	23.26		$	17.55
NET ASSET VALUE, TOTAL RETURN****		34.56	%		(31.47	)%		(3.26	)%		7.55	%
SHARE PRICE TOTAL RETURN****		34.64	%		(31.48	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	38,376		$	33,355		$	25,922		$	10,798
Ratio to average net assets of:
Expenses, after (Waivers) and/or Recapture		0.65	%		0.65	%		0.73	%		0.74	%††
Expenses, prior to (Waivers) and/or Recapture		0.88	%		0.93	%		1.38	%		1.45	%††
Net investment income, after (Waivers) and/or Recapture		1.32	%		1.71	%		1.03	%		1.05	%††
Portfolio turnover rate †		62	%		57	%		49	%		3	%
Undistributed net investment income (loss) included in price of units issued and redeemed**#	$	(0.01	)	$	0.04		$	0.06		$	(0.01	)

* Commencement of Investment Operations.

** Based on average shares outstanding.

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

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

†† Annualized.

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

(a) Amount represents less than $0.005.

See Notes to Financial Statements.

Financial Highlights (Continued)

PowerShares Dynamic Large Cap Value Portfolio

	Year Ended April 30,
	2010			2009			2008			2007			2006
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	13.54		$	19.27		$	20.72		$	17.41		$	14.52
Net investment income*		0.39			0.41			0.43			0.39			0.28
Net realized and unrealized gain (loss) on investments		4.52			(5.81	)		(1.40	)		3.21			2.85
Total from investment operations		4.91			(5.40	)		(0.97	)		3.60			3.13
Distributions to shareholders from:
Net investment income		(0.40	)		(0.33	)		(0.48	)		(0.29	)		(0.24	)
Net asset value at end of period	$	18.05		$	13.54		$	19.27		$	20.72		$	17.41
Share price at end of period**	$	18.18		$	13.55
NET ASSET VALUE, TOTAL RETURN***		36.69	%		(28.30	)%		(4.78	)%		20.85	%		21.71	%
SHARE PRICE TOTAL RETURN***		36.67	%		(28.21	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	349,265		$	262,699		$	252,489		$	292,130		$	90,532
Ratio to average net assets of:
Expenses, after (Waivers) and/or Recapture		0.63	%		0.63	%		0.63	%		0.63	%		0.65	%
Expenses, prior to (Waivers) and/or Recapture		0.60	%		0.61	%		0.59	%		0.67	%		0.94	%
Net investment income, after (Waivers) and/or Recapture		2.46	%		2.71	%		2.14	%		2.00	%		1.75	%
Portfolio turnover rate †		47	%		77	%		22	%		16	%		29	%
Undistributed net investment income included in price of units issued and redeemed*#	$	0.01		$	0.02		$	0.00	^(a)	$	0.03			—

PowerShares Dynamic Mid Cap Growth Portfolio

	Year Ended April 30,
	2010			2009			2008			2007			2006
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	13.87		$	22.29		$	21.09		$	18.79		$	13.92
Net investment income (loss)*		0.00	^(a)		(0.01	)		0.00	^(a)		(0.03	)		0.28
Net realized and unrealized gain (loss) on investments		5.25			(8.41	)		1.20			2.44			4.59
Total from investment operations		5.25			(8.42	)		1.20			2.41			4.87
Distributions to shareholders from:
Net investment income		(0.00	)^(a)		—			—			(0.11	)		—
Return of capital		(0.01	)		—			0.00	^(a)		0.00	^(a)		—
Total distributions		(0.01	)		—			—			(0.11	)		—
Net asset value at end of period	$	19.11		$	13.87		$	22.29		$	21.09		$	18.79
Share price at end of period**	$	19.32		$	13.85
NET ASSET VALUE, TOTAL RETURN***		37.89	%		(37.78	)%		5.70	%		12.91	%		34.99	%
SHARE PRICE TOTAL RETURN***		38.02	%		(37.86	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	128,044		$	140,038		$	390,146		$	189,794		$	103,325
Ratio to average net assets of:
Expenses, after (Waivers) and/or Recapture		0.63	%		0.63	%		0.63	%		0.63	%		0.65	%
Expenses, prior to (Waivers) and/or Recapture		0.66	%		0.61	%		0.60	%		0.73	%		0.90	%
Net investment income (loss), after (Waivers) and/or Recapture		0.03	%		(0.07	)%		(0.01	)%		(0.15	)%		1.56	%
Portfolio turnover rate †		75	%		81	%		80	%		69	%		86	%
Undistributed net investment income (loss) included in price of units issued and redeemed*#	$	(0.00	)^(a)	$	0.01		$	(0.01	)	$	0.02			—

* Based on average shares outstanding.

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

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

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

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

(a) Amount represents less than $0.005.

See Notes to Financial Statements.

Financial Highlights (Continued)

PowerShares Dynamic Mid Cap Portfolio

	Year Ended April 30,									For the Period December 1, 2006* Through
	2010			2009			2008			April 30, 2007
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	16.30		$	25.47		$	27.98		$	25.26
Net investment income**		0.18			0.13			0.11			0.10
Net realized and unrealized gain (loss) on investments		6.73			(9.17	)		(2.49	)		2.68
Total from investment operations		6.91			(9.04	)		(2.38	)		2.78
Distributions to shareholders from:
Net investment income		(0.16	)		(0.13	)		(0.13	)		(0.06	)
Net asset value at end of period	$	23.05		$	16.30		$	25.47		$	27.98
Share price at end of period***	$	23.04		$	16.29
NET ASSET VALUE, TOTAL RETURN****		42.59	%		(35.57	)%		(8.54	)%		11.04	%
SHARE PRICE TOTAL RETURN****		42.62	%		(35.63	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	25,353		$	17,929		$	25,469		$	11,190
Ratio to average net assets of:
Expenses, after (Waivers) and/or Recapture		0.65	%		0.65	%		0.73	%		0.74	%†
Expenses, prior to (Waivers) and/or Recapture		1.11	%		1.17	%		1.34	%		1.55	%†
Net investment income, after (Waivers) and/or Recapture		0.92	%		0.67	%		0.42	%		0.91	%†
Portfolio turnover rate ††		76	%		79	%		99	%		7	%
Undistributed net investment income (loss) included in price of units issued and redeemed**#	$	(0.00	)^(a)	$	0.01		$	(0.01	)	$	0.00	(a)

PowerShares Dynamic Mid Cap Value Portfolio

	Year Ended April 30,
	2010			2009			2008			2007			2006
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	11.16		$	16.89		$	20.25		$	17.22		$	14.47
Net investment income**		0.23			0.26			0.22			0.29			0.22
Net realized and unrealized gain (loss) on investments		4.24			(5.75	)		(3.32	)		2.97			2.78
Total from investment operations		4.47			(5.49	)		(3.10	)		3.26			3.00
Distributions to shareholders from:
Net investment income		(0.26	)		(0.24	)		(0.26	)		(0.23	)		(0.25	)
Net asset value at end of period	$	15.37		$	11.16		$	16.89		$	20.25		$	17.22
Share price at end of period***	$	15.36		$	11.13
NET ASSET VALUE, TOTAL RETURN****		40.58	%		(32.71	)%		(15.47	)%		19.14	%		20.85	%
SHARE PRICE TOTAL RETURN****		40.88	%		(32.89	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	43,818		$	39,056		$	79,380		$	109,356		$	56,815
Ratio to average net assets of:
Expenses, after (Waivers) and/or Recapture		0.63	%		0.63	%		0.63	%		0.63	%		0.67	%
Expenses, prior to (Waivers) and/or Recapture		0.84	%		0.78	%		0.68	%		0.82	%		1.13	%
Net investment income, after (Waivers) and/or Recapture		1.76	%		1.95	%		1.14	%		1.64	%		1.33	%
Portfolio turnover rate ††		86	%		94	%		53	%		43	%		117	%
Undistributed net investment income (loss) included in price of units issued and redeemed**#	$	(0.00	)^(a)	$	(0.01	)	$	0.00	^(a)	$	0.01			—

* Commencement of Investment Operations.

** Based on average shares outstanding.

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

† Annualized.

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

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

(a) Amount represents less than $0.005.

See Notes to Financial Statements.

Financial Highlights (Continued)

PowerShares Dynamic Small Cap Growth Portfolio

	Year Ended April 30,
	2010			2009			2008			2007			2006
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	10.49		$	15.71		$	18.59		$	18.51		$	13.90
Net investment income (loss)**		0.05			0.01			(0.05	)		(0.05	)		0.11
Net realized and unrealized gain (loss) on investments		3.67			(5.23	)		(2.83	)		0.13			4.50
Total from investment operations		3.72			(5.22	)		(2.88	)		0.08			4.61
Distributions to shareholders from:
Net investment income		(0.07	)		—			—			—			—
Return of Capital		(0.02	)		—			—			—			—
Total distributions		(0.09	)		—			—			—			—
Net asset value at end of period	$	14.12		$	10.49		$	15.71		$	18.59		$	18.51
Share price at end of period***	$	14.10		$	10.48
NET ASSET VALUE, TOTAL RETURN****		35.60	%		(33.23	)%		(15.49	)%		0.43	%		33.17	%
SHARE PRICE TOTAL RETURN****		35.54	%		(33.25	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	32,473		$	31,484		$	51,846		$	61,347		$	118,465
Ratio to average net assets of:
Expenses, after (Waivers) and/or Recapture		0.63	%		0.63	%		0.63	%		0.63	%		0.65	%
Expenses, prior to (Waivers) and/or Recapture		0.94	%		0.86	%		0.77	%		0.84	%		0.90	%
Net investment income (loss), after (Waivers) and/or Recapture		0.41	%		0.11	%		(0.27	)%		(0.32	)%		0.65	%
Portfolio turnover rate †		113	%		109	%		78	%		114	%		120	%
Undistributed net investment income (loss) included in price of units issued and redeemed**#	$	0.01		$	0.00	^(a)	$	(0.00	)^(a)	$	(0.02	)		—

PowerShares Dynamic Small Cap Portfolio

	Year Ended April 30,									For the Period December 1, 2006* Through
	2010			2009			2008			April 30, 2007
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	15.03		$	23.31		$	26.68		$	25.17
Net investment income**		0.11			0.08			0.06			0.00	^(a)
Net realized and unrealized gain (loss) on investments		6.08			(8.31	)		(3.13	)		1.51
Total from investment operations		6.19			(8.23	)		(3.07	)		1.51
Distributions to shareholders from:
Net investment income		(0.14	)		(0.05	)		(0.08	)		0.00	^(a)
Return of capital		(0.01	)		—			(0.22	)		—
Total distributions		(0.15	)		(0.05	)		(0.30	)		—
Net asset value at end of period	$	21.07		$	15.03		$	23.31		$	26.68
Share price at end of period***	$	21.05		$	15.00
NET ASSET VALUE, TOTAL RETURN****		41.37	%		(35.34	)%		(11.61	)%		6.01	%
SHARE PRICE TOTAL RETURN****		41.52	%		(35.41	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	18,960		$	13,530		$	16,314		$	8,005
Ratio to average net assets of:
Expenses, after (Waivers) and/or Recapture		0.65	%		0.65	%		0.79	%		0.74	%††
Expenses, prior to (Waivers) and/or Recapture		1.26	%		1.35	%		1.96	%		1.55	%††
Net investment income, after (Waivers) and/or Recapture		0.59	%		0.47	%		0.26	%		0.04	%††
Portfolio turnover rate †		93	%		81	%		103	%		52	%
Undistributed net investment income included in price of units issued and redeemed**#	$	0.00	^(a)	$	0.01		$	0.05		$	0.00	^(a)

* Commencement of Investment Operations.

** Based on average shares outstanding.

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

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

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

†† Annualized.

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

(a) Amount represents less than $0.005.

See Notes to Financial Statements.

Financial Highlights (Continued)

PowerShares Dynamic Small Cap Value Portfolio

	Year Ended April 30,
	2010			2009			2008			2007			2006
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	10.38		$	15.80		$	18.68		$	17.01		$	13.79
Net investment income**		0.09			0.12			0.16			0.13			0.11
Net realized and unrealized gain (loss) on investments		4.25			(5.43	)		(2.47	)		1.67			3.22
Total from investment operations		4.34			(5.31	)		(2.31	)		1.80			3.33
Distributions to shareholders from:
Net investment income		(0.08	)		(0.11	)		(0.16	)		(0.13	)		(0.11	)
Return of capital		—			—			(0.41	)		—			—
Total distributions		(0.08	)		(0.11	)		(0.57	)		(0.13	)		(0.11	)
Net asset value at end of period	$	14.64		$	10.38		$	15.80		$	18.68		$	17.01
Share price at end of period***	$	14.62		$	10.36
NET ASSET VALUE, TOTAL RETURN****		42.03	%		(33.69	)%		(12.51	)%		10.64	%		24.20	%
SHARE PRICE TOTAL RETURN****		42.11	%		(33.78	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	72,453		$	62,253		$	91,667		$	117,680		$	66,339
Ratio to average net assets of:
Expenses, after (Waivers) and/or Recapture		0.63	%		0.63	%		0.63	%		0.63	%		0.66	%
Expenses, prior to (Waivers) and/or Recapture		0.74	%		0.73	%		0.67	%		0.80	%		1.06	%
Net investment income, after (Waivers) and/or Recapture		0.73	%		1.00	%		0.91	%		0.73	%		0.73	%
Portfolio turnover rate †		116	%		98	%		86	%		76	%		118	%
Undistributed net investment income (loss) included in price of units issued and redeemed**#	$	0.00	^(a)	$	0.00	^(a)	$	(0.03	)	$	0.01			—

PowerShares FTSE NASDAQ Small Cap Portfolio

	Year Ended April 30,						For the Period April 1, 2008* Through
	2010			2009			April 30, 2008
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	16.88		$	25.63		$	25.73
Net investment income**		0.00	^(a)		0.05			0.00	^(a)
Net realized and unrealized gain (loss) on investments		8.50			(8.65	)		(0.10	)
Total from investment operations		8.50			(8.60	)		(0.10	)
Distributions to shareholder from:
Net investment income		(0.02	)		(0.15	)		—
Net realized gains		—			0.00	^(a)		—
Total distributions		(0.02	)		(0.15	)		—
Net asset value at end of period	$	25.36		$	16.88		$	25.63
Share price at end of period***	$	25.34		$	16.86
NET ASSET VALUE, TOTAL RETURN****		50.37	%		(33.53	)%		(0.39	)%^(b)
SHARE PRICE TOTAL RETURN****		50.43	%		(33.58	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	1,268		$	1,688		$	2,563
Ratio to average net assets of:
Expenses		0.70	%		0.70	%		0.70	%††
Net investment (income) loss		(0.02	)%		0.27	%		(0.09	)%††
Portfolio turnover rate †		25	%		19	%		0	%
Undistributed net investment income included in price of units issued and redeemed**#	$	0.00	^(a)	$	0.00	^(a)		—

* Commencement of Investment Operations.

** Based on average shares outstanding.

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

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

†† Annualized.

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

(a) Amount represents less than $0.005.

(b) The total return from Fund Inception (first day of trading on the Exchange) to April 30, 2008 was (0.50)%.

See Notes to Financial Statements.

Financial Highlights (Continued)

PowerShares Zacks Micro Cap Portfolio

	Year Ended April 30,												For the Period August 18, 2005* Through
	2010			2009			2008			2007			April 30, 2006
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	8.10		$	13.63		$	18.32		$	17.47		$	14.79
Net investment income**		0.04			0.12			0.16			0.06			0.00	^(a)
Net realized and unrealized gain (loss) on investments		3.62			(5.48	)		(4.73	)		0.81			2.69
Total from investment operations		3.66			(5.36	)		(4.57	)		0.87			2.69
Distributions to shareholders from:
Net investment income		(0.07	)		(0.17	)		(0.12	)		(0.02	)		(0.01	)
Return of capital		—			—			—			—			0.00	^(a)
Total distributions		(0.07	)		(0.17	)		(0.12	)		(0.02	)		(0.01	)
Net asset value at end of period	$	11.69		$	8.10		$	13.63		$	18.32		$	17.47
Share price at end of period***	$	11.68		$	8.10
NET ASSET VALUE, TOTAL RETURN****		45.49	%		(39.70	)%		(25.07	)%		4.99	%		18.20	%
SHARE PRICE TOTAL RETURN****		45.37	%		(39.66	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	53,758		$	46,960		$	94,068		$	192,310		$	158,976
Ratio to average net assets of:
Expenses, after (Waivers) and/or Recapture		0.70	%		0.70	%		0.70	%		0.71	%		0.72	%†
Expenses, prior to (Waivers) and/or Recapture		0.93	%		0.86	%		0.71	%		0.78	%		0.82	%†
Net investment income, after (Waivers) and/or Recapture		0.38	%		1.11	%		0.99	%		0.36	%		0.01	%†
Portfolio turnover rate ††		78	%		51	%		54	%		72	%		78	%
Undistributed net investment income (loss) included in price of units issued and redeemed**#	$	0.01		$	0.00	^(a)	$	(0.03	)	$	0.01			—

PowerShares Zacks Small Cap Portfolio

	Year Ended April 30,												For the Period February 16, 2006* Through
	2010			2009			2008			2007			April 30, 2006
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	14.45		$	23.31		$	27.51		$	26.76		$	25.41
Net investment income**		0.05			0.11			0.22	†††		0.05			0.02
Net realized and unrealized gain (loss) on investments		5.92			(8.83	)		(4.23	)		0.76			1.33
Total from investment operations		5.97			(8.72	)		(4.01	)		0.81			1.35
Distributions to shareholders from:
Net investment income		(0.06	)		(0.13	)		(0.19	)		(0.06	)		—
Return of capital		—			(0.01	)		—			0.00	^(a)		—
Total distributions		(0.06	)		(0.14	)		(0.19	)		(0.06	)		—
Net asset value at end of period	$	20.36		$	14.45		$	23.31		$	27.51		$	26.76
Share price at end of period***	$	20.32		$	14.38
NET ASSET VALUE, TOTAL RETURN****		41.41	%		(37.56	)%		(14.66	)%		3.03	%		5.31	%
SHARE PRICE TOTAL RETURN****		41.82	%		(37.84	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	18,322		$	18,788		$	39,630		$	71,530		$	58,866
Ratio to average net assets of:
Expenses, after (Waivers) and/or Recapture		0.70	%		0.70	%		0.70	%		0.71	%		0.75	%†
Expenses, prior to (Waivers) and/or Recapture		1.21	%		1.09	%		0.83	%		0.89	%		1.17	%†
Net investment income, after (Waivers) and/or Recapture		0.30	%		0.58	%		0.81	%†††		0.19	%		0.30	%†
Portfolio turnover rate ††		124	%		63	%		58	%		87	%		1	%
Undistributed net investment income (loss) included in price of units issued and redeemed**#	$	0.02		$	0.02		$	(0.05	)	$	0.00	^(a)		—

* Commencement of Investment Operations.

** Based on average shares outstanding.

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

† Annualized.

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

††† Net investment income per share and the ratio of net investment income to average net assets include a special cash dividend received of $3.00 per share owned of Books-A-Million, Inc. on July 5, 2007. Net investment income per share and the ratio of net investment income to average net assets excluding the special dividend are $0.19 and 0.72%, respectively.

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

(a) Amount represents less than $0.005.

See Notes to Financial Statements.

Notes to Financial Statements

PowerShares Exchange-Traded Fund Trust

April 30, 2010

Note 1. Organization

Full Name				Short Name
PowerShares Dynamic Large Cap Growth Portfolio				"Dynamic Large Cap Growth Portfolio"

PowerShares Dynamic Large Cap Portfolio				"Dynamic Large Cap Portfolio"

PowerShares Dynamic Large Cap Value Portfolio				"Dynamic Large Cap Value Portfolio"

PowerShares Dynamic Mid Cap Growth Portfolio				"Dynamic Mid Cap Growth Portfolio"

PowerShares Dynamic Mid Cap Portfolio				"Dynamic Mid Cap Portfolio"

PowerShares Dynamic Mid Cap Value Portfolio				"Dynamic Mid Cap Value Portfolio"

PowerShares Dynamic Small Cap Growth Portfolio				"Dynamic Small Cap Growth Portfolio"

PowerShares Dynamic Small Cap Portfolio				"Dynamic Small Cap Portfolio"

PowerShares Dynamic Small Cap Value Portfolio				"Dynamic Small Cap Value Portfolio"

PowerShares FTSE NASDAQ Small Cap Portfolio				"FTSE NASDAQ Small Cap Portfolio"

PowerShares Zacks Micro Cap Portfolio				"Zacks Micro Cap Portfolio"

PowerShares Zacks Small Cap Portfolio				"Zacks Small Cap Portfolio"

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

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

Fund				Index
Dynamic Large Cap Growth Portfolio				Dynamic Large Cap Growth Intellidex^SM Index

Dynamic Large Cap Portfolio				Dynamic Large Cap Intellidex^SM Index

Dynamic Large Cap Value Portfolio				Dynamic Large Cap Value Intellidex^SM Index

Dynamic Mid Cap Growth Portfolio				Dynamic Mid Cap Growth Intellidex^SM Index

Dynamic Mid Cap Portfolio				Dynamic Mid Cap Intellidex^SM Index

Dynamic Mid Cap Value Portfolio				Dynamic Mid Cap Value Intellidex^SM Index

Dynamic Small Cap Growth Portfolio				Dynamic Small Cap Growth Intellidex^SM Index

Dynamic Small Cap Portfolio				Dynamic Small Cap Intellidex^SM Index

Dynamic Small Cap Value Portfolio				Dynamic Small Cap Value Intellidex^SM Index

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

April 30, 2010

Fund				Index
FTSE NASDAQ Small Cap Portfolio				FTSE NASDAQ Small Cap Index

Zacks Micro Cap Portfolio				Zacks Micro Cap Index^TM

Zacks Small Cap Portfolio				Zacks Small Cap Index^TM

Note 2. Significant Accounting Policies

A. Security Valuation

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

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

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

April 30, 2010

be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts ("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.

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

B. Other Risks

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

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

April 30, 2010

C. Federal Income Taxes

D. Investment Income and Investment Transactions

E. Expenses

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

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

F. Dividends and Distributions to Shareholders

Each Fund declares and pays dividends from net investment income, if any, to its shareholders quarterly and records on ex-dividend date. Each Fund distributes net realized taxable capital gains, if any, generally annually in cash and recorded on ex-dividend date. Such distributions on a tax basis are determined in conformity with income tax regulations which may differ from GAAP. Distributions in excess of tax basis

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

April 30, 2010

earnings and profits, if any, are reported in such Fund's financial statements as a tax return of capital at fiscal period-end.

G. Equalization

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

Note 3. Investment Advisory Agreement and Other Agreements

The Trust has entered into an Investment Advisory Agreement with the Adviser pursuant to which the Adviser has overall responsibility as the Funds' investment adviser for the selection and ongoing monitoring of the Funds' investments, managing the Funds' business affairs and providing certain clerical, bookkeeping and other administrative services. Each Fund (except for FTSE NASDAQ Small Cap Portfolio) has agreed to pay the Adviser an annual fee of 0.50% of the Fund's average daily net assets. The FTSE NASDAQ Small Cap Portfolio has agreed to pay the Adviser an annual unitary management fee of 0.70% of its average daily net assets and the Adviser has agreed to pay for substantially all expenses of the FTSE NASDAQ Small Cap Portfolio, including the cost of transfer agency, custody, fund administration, legal, audit and other services, except for the management fee, distribution fees, if any, brokerage expenses, taxes, interest, litigation expenses and other extraordinary expenses.

The Adviser has entered into an Amended and Restated Excess Expense Agreement (the "Excess Expense Agreement") with the Trust, pursuant to which the Adviser has agreed to waive fees and/or pay Fund expenses to the extent necessary to prevent the operating expenses of each Fund (except for the FTSE NASDAQ Small Cap Portfolio) (excluding interest expense, brokerage commissions and other trading expenses, sub-licensing fees, offering costs, taxes and extraordinary expenses) from exceeding 0.60% of the Fund's average daily net assets per year (the "Expense Cap"), at least until August 31, 2011. Offering costs excluded from the Expense Cap are: (a) initial legal fees pertaining to the Funds' Shares offered for sale; (b) initial Securities and Exchange Commission and state registration fees; and (c) initial fees paid to be listed on an exchange.

The Excess Expense Agreement provides that the expenses borne by the Adviser are subject to recapture by the Adviser for up to three years from the date the fee or expense was borne by the Adviser, but no recapture payment will be made by a Fund if it would result in the Fund exceeding its Expense Cap as specified above. The Excess Expense Agreement does not apply to the FTSE NASDAQ Small Cap Portfolio.

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

April 30, 2010

The amounts available for potential future recapture by the Adviser under the Excess Expense Agreement and the expiration schedule at April 30, 2010 are as follows:

	Total Potential		Potential Recapture Amounts Expiring
	Recapture Amount		04/30/11		04/30/12		04/30/13
Dynamic Large Cap Portfolio	$	285,530	$	109,396	$	88,796	$	87,338
Dynamic Large Cap Value Portfolio		186		—		—		186
Dynamic Mid Cap Growth Portfolio		101,100		26,117		34,730		40,253
Dynamic Mid Cap Portfolio		309,230		108,356		100,131		100,743
Dynamic Mid Cap Value Portfolio		226,778		51,113		86,712		88,953
Dynamic Small Cap Growth Portfolio		280,008		84,184		95,759		100,065
Dynamic Small Cap Portfolio		326,336		115,956		106,215		104,165
Dynamic Small Cap Value Portfolio		193,021		45,829		72,981		74,211
Zacks Micro Cap Portfolio		248,321		33,517		105,107		109,697
Zacks Small Cap Portfolio		306,629		86,368		110,051		110,210

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

Fund				Licensors
Dynamic Large Cap Growth Portfolio				NYSE Arca

Dynamic Large Cap Portfolio				NYSE Arca

Dynamic Large Cap Value Portfolio				NYSE Arca

Dynamic Mid Cap Growth Portfolio				NYSE Arca

Dynamic Mid Cap Portfolio				NYSE Arca

Dynamic Mid Cap Value Portfolio				NYSE Arca

Dynamic Small Cap Growth Portfolio				NYSE Arca

Dynamic Small Cap Portfolio				NYSE Arca

Dynamic Small Cap Value Portfolio				NYSE Arca

FTSE NASDAQ Small Cap Portfolio				NASDAQ OMX Group, Inc.

Zacks Micro Cap Portfolio				Zacks Investment Research, Inc.

Zacks Small Cap Portfolio				Zacks Investment Research, Inc.

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

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

April 30, 2010

Note 4. Additional Valuation Information

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

	Investment in Securities
	Level 1		Level 2		Level 3		Total
Dynamic Large Cap Growth Portfolio
Equity Securities	$	230,332,530	$	—	$	—	$	230,332,530
Money Market Fund		106,507		—		—		106,507
Total Investments		230,439,037		—		—		230,439,037
Dynamic Large Cap Portfolio
Equity Securities		38,361,787		—		—		38,361,787
Money Market Fund		28,691		—		—		28,691
Total Investments		38,390,478		—		—		38,390,478
Dynamic Large Cap Value Portfolio
Equity Securities		349,338,681		—		—		349,338,681
Dynamic Mid Cap Growth Portfolio
Equity Securities		128,060,035		—		—		128,060,035
Money Market Fund		114,467		—		—		114,467
Total Investments		128,174,502		—		—		128,174,502

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

April 30, 2010

	Investment in Securities
	Level 1		Level 2		Level 3		Total
Dynamic Mid Cap Portfolio
Equity Securities	$	25,352,830	$	—	$	—	$	25,352,830
Money Market Fund		40,980		—		—		40,980
Total Investments		25,393,810		—		—		25,393,810
Dynamic Mid Cap Value Portfolio
Equity Securities		43,820,965		—		—		43,820,965
Money Market Fund		43,158		—		—		43,158
Total Investments		43,864,123		—		—		43,864,123
Dynamic Small Cap Growth Portfolio
Equity Securities		32,493,472		—		—		32,493,472
Money Market Fund		30,060		—		—		30,060
Total Investments		32,523,532		—		—		32,523,532
Dynamic Small Cap Portfolio
Equity Securities		18,954,838		—		—		18,954,838
Money Market Fund		44,172		—		—		44,172
Total Investments		18,999,010		—		—		18,999,010
Dynamic Small Cap Value Portfolio
Equity Securities		72,411,216		—		—		72,411,216
Money Market Fund		100,171		—		—		100,171
Total Investments		72,511,387		—		—		72,511,387
FTSE NASDAQ Small Cap Portfolio
Equity Securities		1,263,986		—		—		1,263,986
Zacks Micro Cap Portfolio
Equity Securities		53,766,834		—		—		53,766,834
Money Market Fund		68,442		—		—		68,442
Total Investments		53,835,276		—		—		53,835,276
Zacks Small Cap Portfolio
Equity Securities		18,320,420		—		—		18,320,420
Money Market Fund		53,156		—		—		53,156
Total Investments		18,373,576		—		—		18,373,576

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

April 30, 2010

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

Tax Character of Distributions to Shareholders Paid During the Fiscal Years Ended April 30, 2010 and 2009:

	2010				2009
	Ordinary Income		Return of Capital		Ordinary Income		Long-term Capital Gains		Return of Capital
Dynamic Large Cap Growth Portfolio	$	2,004,571	$	—	$	2,172,246	$	—	$	—
Dynamic Large Cap Portfolio		600,837		—		365,160		—		—
Dynamic Large Cap Value Portfolio		7,967,039		—		4,825,414		—		—
Dynamic Mid Cap Growth Portfolio		33,475		67,025		—		—		—
Dynamic Mid Cap Portfolio		182,736		—		132,595		—		—
Dynamic Mid Cap Value Portfolio		858,787		—		992,947		—		—
Dynamic Small Cap Growth Portfolio		193,877		41,471		—		—		—
Dynamic Small Cap Portfolio		130,765		12,826		45,596		—		—
Dynamic Small Cap Value Portfolio		464,268		—		695,379		—		—
FTSE NASDAQ Small Cap Portfolio		1,663		—		15,180		9		—
Zacks Micro Cap Portfolio		402,300		—		1,156,194		—		—
Zacks Small Cap Portfolio		81,588		—		210,193		—		20,801

Tax Components of Net Assets at Fiscal Year-End:

	Undistributed Ordinary Income		Temporary Book/Tax Differences			Net Unrealized Appreciation		Capital Loss Carryforward			Post-October* Deferrals			Shares of Beneficial Interest		Total Net Assets
Dynamic Large Cap Growth Portfolio	$	225,451	$	(11,924	)	$	35,729,298	$	(225,486,905	)	$	(2,919,069	)	$	422,797,458	$	230,334,309
Dynamic Large Cap Portfolio		137,373		(3,237	)		5,167,945		(8,037,283	)		(351,999	)		41,463,523		38,376,322
Dynamic Large Cap Value Portfolio		1,909,525		(8,315	)		32,150,969		(83,611,081	)		(7,262,277	)		406,086,577		349,265,398
Dynamic Mid Cap Growth Portfolio		—		(7,909	)		22,437,455		(150,724,296	)		(4,648,001	)		260,987,065		128,044,314
Dynamic Mid Cap Portfolio		34,713		(2,988	)		4,450,476		(8,054,970	)		(65,337	)		28,990,931		25,352,825
Dynamic Mid Cap Value Portfolio		48,191		(3,905	)		5,186,862		(39,659,662	)		(957,216	)		79,204,220		43,818,490
Dynamic Small Cap Growth Portfolio		—		(3,517	)		4,063,031		(40,865,437	)		(1,377,444	)		70,655,869		32,472,502
Dynamic Small Cap Portfolio		—		(2,868	)		2,770,769		(5,777,174	)		(611,000	)		22,580,348		18,960,075
Dynamic Small Cap Value Portfolio		72,733		(4,309	)		9,628,812		(39,303,143	)		(122,887	)		102,181,898		72,453,104
FTSE NASDAQ Small Cap Portfolio		31		—			67,372		(322,806	)		(89,873	)		1,613,290		1,268,014
Zacks Micro Cap Portfolio		256,160		(4,259	)		7,782,766		(72,582,290	)		(1,890,032	)		120,195,963		53,758,308
Zacks Small Cap Portfolio		5,467		(3,252	)		2,881,498		(29,109,320	)		(1,722,736	)		46,270,595		18,322,252

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

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

April 30, 2010

The following Funds have capital loss carryforward amounts as of April 30, 2010, which expire on April 30 of each year listed below:

	2014		2015		2016		2017		2018		Total*
Dynamic Large Cap Growth Portfolio	$	191,864	$	10,916,066	$	14,024,455	$	68,715,641	$	131,638,879	$	225,486,905
Dynamic Large Cap Portfolio		—		—		87,112		2,328,337		5,621,834		8,037,283
Dynamic Large Cap Value Portfolio		70,814		1,378,743		2,783,761		22,558,581		56,819,182		83,611,081
Dynamic Mid Cap Growth Portfolio		422,220		8,055,857		5,112,579		54,769,394		82,364,246		150,724,296
Dynamic Mid Cap Portfolio		—		—		628,828		3,815,763		3,610,379		8,054,970
Dynamic Mid Cap Value Portfolio		237,806		2,384,765		5,347,255		12,697,113		18,992,723		39,659,662
Dynamic Small Cap Growth Portfolio		823,782		13,094,039		6,666,558		9,888,431		10,392,627		40,865,437
Dynamic Small Cap Portfolio		—		—		1,028,299		2,738,120		2,010,755		5,777,174
Dynamic Small Cap Value Portfolio		703,862		3,929,009		8,615,687		16,547,947		9,506,638		39,303,143
FTSE NASDAQ Small Cap Portfolio		—		—		—		—		322,806		322,806
Zacks Micro Cap Portfolio		1,951,245		15,172,527		14,330,930		28,782,755		12,344,833		72,582,290
Zacks Small Cap Portfolio		—		3,417,527		7,222,482		10,220,605		8,248,706		29,109,320

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

Note 6. Investment Transactions

For the fiscal year ended April 30, 2010, the cost of securities purchased and proceeds from sales of securities, excluding short-term securities and in-kind transactions, were as follows:

	Purchases		Sales
Dynamic Large Cap Growth Portfolio	$	192,218,324	$	176,617,990
Dynamic Large Cap Portfolio		24,027,762		23,527,068
Dynamic Large Cap Value Portfolio		175,442,605		146,917,454
Dynamic Mid Cap Growth Portfolio		112,053,870		98,058,257
Dynamic Mid Cap Portfolio		19,140,336		16,582,533
Dynamic Mid Cap Value Portfolio		42,920,480		36,237,897
Dynamic Small Cap Growth Portfolio		40,136,086		36,025,165
Dynamic Small Cap Portfolio		18,584,554		15,717,182
Dynamic Small Cap Value Portfolio		82,573,035		78,225,802
FTSE NASDAQ Small Cap Portfolio		512,682		498,474
Zacks Micro Cap Portfolio		37,297,464		38,529,570
Zacks Small Cap Portfolio		25,850,712		26,094,006

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

April 30, 2010

For the fiscal year ended April 30, 2010, in-kind transactions associated with creations and redemptions were as follows:

	Securities Received		Securities Delivered
Dynamic Large Cap Growth Portfolio	$	191,718,807	$	341,397,631
Dynamic Large Cap Portfolio		29,504,824		35,771,331
Dynamic Large Cap Value Portfolio		316,823,090		346,967,037
Dynamic Mid Cap Growth Portfolio		131,848,085		199,584,525
Dynamic Mid Cap Portfolio		21,955,481		24,742,276
Dynamic Mid Cap Value Portfolio		48,378,832		64,024,473
Dynamic Small Cap Growth Portfolio		40,574,829		53,109,296
Dynamic Small Cap Portfolio		23,850,636		27,295,923
Dynamic Small Cap Value Portfolio		96,102,190		113,590,021
FTSE NASDAQ Small Cap Portfolio		199,018		1,493,710
Zacks Micro Cap Portfolio		43,117,548		53,079,367
Zacks Small Cap Portfolio		12,755,324		20,012,090

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

At April 30, 2010, the aggregate cost and the net unrealized appreciation of investments for tax purposes were as follows:

	Cost		Net Unrealized Appreciation		Gross Unrealized Appreciation		Gross Unrealized (Depreciation)
Dynamic Large Cap Growth Portfolio	$	194,709,739	$	35,729,298	$	40,547,773	$	(4,818,475	)
Dynamic Large Cap Portfolio		33,222,533		5,167,945		5,316,545		(148,600	)
Dynamic Large Cap Value Portfolio		317,187,712		32,150,969		38,499,846		(6,348,877	)
Dynamic Mid Cap Growth Portfolio		105,737,047		22,437,455		23,318,724		(881,269	)
Dynamic Mid Cap Portfolio		20,943,334		4,450,476		4,555,837		(105,361	)
Dynamic Mid Cap Value Portfolio		38,677,261		5,186,862		5,444,070		(257,208	)
Dynamic Small Cap Growth Portfolio		28,460,501		4,063,031		4,745,611		(682,580	)
Dynamic Small Cap Portfolio		16,228,241		2,770,769		2,961,660		(190,891	)
Dynamic Small Cap Value Portfolio		62,882,575		9,628,812		10,355,340		(726,528	)
FTSE NASDAQ Small Cap Portfolio		1,196,614		67,372		251,344		(183,972	)
Zacks Micro Cap Portfolio		46,052,510		7,782,766		9,487,953		(1,705,187	)
Zacks Small Cap Portfolio		15,492,078		2,881,498		3,650,929		(769,431	)

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

April 30, 2010

Note 7. Reclassification of Permanent Differences

Primarily as a result of differing book/tax treatment of investment activity, on April 30, 2010, amounts were reclassified between undistributed net investment income (loss), undistributed net realized 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, 2010, the reclassifications were as follows:

	Undistributed Net Investment Income (Loss)			Undistributed Net Realized Gain (Loss)			Shares of Beneficial Interest
Dynamic Large Cap Growth Portfolio	$	99,913		$	(55,511,113	)	$	55,411,200
Dynamic Large Cap Portfolio		11,223			(5,155,353	)		5,144,130
Dynamic Large Cap Value Portfolio		(91,547	)		(53,952,360	)		54,043,907
Dynamic Mid Cap Growth Portfolio		92,846			(35,168,550	)		35,075,704
Dynamic Mid Cap Portfolio		1,885			(5,247,624	)		5,245,739
Dynamic Mid Cap Value Portfolio		12,087			(12,142,519	)		12,130,432
Dynamic Small Cap Growth Portfolio		26,995			(10,207,328	)		10,180,333
Dynamic Small Cap Portfolio		12,319			(5,533,321	)		5,521,002
Dynamic Small Cap Value Portfolio		(34,001	)		(19,686,993	)		19,720,994
FTSE NASDAQ Small Cap Portfolio		(213	)		(281,578	)		281,791
Zacks Micro Cap Portfolio		175,241			(7,243,813	)		7,068,572
Zacks Small Cap Portfolio		(36,023	)		(3,690,939	)		3,726,962

Note 8. Trustees' Fees

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

Note 9. Capital

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

April 30, 2010

Note 10. Indemnifications

Report of Independent Registered Public Accounting Firm

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

/s/ PricewaterhouseCoopers LLP
New York, New York
June 28, 2010

Tax Information

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

Each Fund designates the following amounts or, if subsequently determined to be different, the maximum amount allowable for its fiscal year ended April 30, 2010:

Federal Income Tax Information

	Qualified dividend income*			Corporate dividends- received deduction*
Dynamic Large Cap Growth Portfolio		100	%		100	%
Dynamic Large Cap Portfolio		100	%		100	%
Dynamic Large Cap Value Portfolio		100	%		100	%
Dynamic Mid Cap Growth Portfolio		100	%		100	%
Dynamic Mid Cap Portfolio		100	%		100	%
Dynamic Mid Cap Value Portfolio		100	%		100	%
Dynamic Small Cap Growth Portfolio		100	%		100	%
Dynamic Small Cap Portfolio		100	%		100	%
Dynamic Small Cap Value Portfolio		100	%		100	%
FTSE NASDAQ Small Cap Portfolio		100	%		100	%
Zacks Micro Cap Portfolio		100	%		100	%
Zacks Small Cap Portfolio		100	%		100	%

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

Proxy Results

A Special Meeting of Shareholders was held on March 22, 2010 to elect seven individuals to the Board of Trustees of PowerShares Exchange-Traded Fund Trust:

The results of the voting on the above matter were as follows:

Trustees	Votes For		Withheld/ Abstentions*
Ronn R. Bagge		426,624,761		8,241,402
Todd J. Barre		426,876,044		7,990,119
H. Bruce Bond		426,681,223		8,184,940
Kevin M. Carome		425,386,415		9,479,748
Marc M. Kole		426,529,715		8,336,448
Philip M. Nussbaum		426,531,618		8,334,545
Donald H. Wilson		426,691,769		8,174,394

* Includes Non-Voter.

Trustees and Officers

The Trustees and officers information is current as of April 30, 2010.

Name, Address and Age of
Independent Trustees

Position(s) Held
with Trust

Term of
Office
and
Length
of Time
Served*

Principal Occupation(s)
During Past 5 Years

Number of
Portfolios
in Fund
Complex
Overseen by
Independent
Trustees

Other Directorships
Held by Independent
Trustees

Ronn R. Bagge
(52)
YQA Capital Management LLC
1755 S. Naperville Rd.,
Suite 100
Wheaton, IL 60187

Trustee

Since 2003

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

111

None

Todd J. Barre
(52)
c/o Invesco PowerShares Capital Management LLC
301 West Roosevelt Road
Wheaton, IL 60187

Trustee

Since 2010

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

111

None

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

Trustees and Officers (Continued)

Name, Address and Age of
Independent Trustees

Position(s) Held
with Trust

Term of
Office
and
Length
of Time
Served*

Principal Occupation(s)
During Past 5 Years

Number of
Portfolios
in Fund
Complex
Overseen by
Independent
Trustees

Other Directorships
Held by Independent
Trustees

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

Trustee

Since 2006

111

None

Philip M. Nussbaum
(48)
c/o Invesco PowerShares Capital Management LLC
301 West Roosevelt Road
Wheaton, IL 60187

Trustee

Since 2003

111

None

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

Trustees and Officers (Continued)

Name, Address and Age of
Independent Trustees

Position(s) Held
with Trust

Term of
Office
and
Length
of Time
Served*

Principal Occupation(s)
During Past 5 Years

Number of
Portfolios
in Fund
Complex
Overseen by
Independent
Trustees

Other Directorships
Held by Independent
Trustees

Donald H. Wilson
(50)
c/o Invesco PowerShares Capital Management LLC
301 West Roosevelt Road
Wheaton, IL 60187

Trustee

Since 2006

111

None

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

100

Trustees and Officers (Continued)

Name, Address and Age of
Interested Trustees

Position(s) Held
with Trust

Term of
Office
and
Length of
Time
Served*

Principal Occupation(s)
During Past 5 Years

Number of
Portfolios
in Fund
Complex
Overseen by
Interested
Trustees

Other Directorships
Held by Interested
Trustees

H. Bruce Bond
(46)
Invesco PowerShares Capital Management LLC
301 West Roosevelt Road
Wheaton, IL 60187

Chairman of the Board and Trustee

Since 2003

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

111

None

Kevin M. Carome
(53)
Invesco Ltd.
Two Peachtree Pointe
1555 Peachtree St., N.E.,
Suite 1800
Atlanta, GA 30309

Trustee

Since 2010

111

None

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

101

Trustees and Officers (Continued)

Name, Address and
Age of Executive Officer

Position(s)
Held with
Trust

Length of
Time
Served*

Principal Occupation(s) During Past 5 Years

Andrew Schlossberg
(35)
Invesco Management Group, Inc.
11 Greenway Plaza
Suite 100
Houston, Texas 77046

President

Since 2009

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

Bruce T. Duncan
(55)
Invesco PowerShares Capital Management LLC
301 West Roosevelt Road
Wheaton, IL 60187

Treasurer and Secretary

Treasurer since 2006; Secretary since 2008

Benjamin Fulton
(48)
Invesco PowerShares Capital Management LLC
301 West Roosevelt Road
Wheaton, IL 60187

Vice President

Since 2009

Peter Hubbard
(28)
Invesco PowerShares Capital Management LLC
301 West Roosevelt Road
Wheaton, IL 60187

Vice President

Since 2009

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

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

102

Trustees and Officers (Continued)

Name, Address and
Age of Executive Officer

Position(s)
Held with
Trust

Length of
Time
Served*

Principal Occupation(s) During Past 5 Years

David Warren
(52)
Invesco Trimark Ltd.
5140 Yonge Street
Suite 900
Toronto, Ontario
M2N 6X7

Vice President

Since 2009

Todd Spillane
(51)
Invesco PowerShares Capital Management LLC
11 Greenway Plaza Suite 100
Houston, Texas 77046

Chief Compliance Officer

Since 2010

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

Availability of Additional Information About the Trustees

The Statement of Additional Information includes additional information about the Trustees and is available, without charge, upon request at 800.337.4246.

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

103

Board Considerations Regarding Continuation of Investment Advisory Agreement

PowerShares Dynamic Market Portfolio

PowerShares Dynamic OTC Portfolio

PowerShares Golden Dragon Halter USX China Portfolio

PowerShares High Yield Equity Dividend Achievers^TM Portfolio

PowerShares WilderHill Clean Energy Portfolio

PowerShares Dynamic Large Cap Growth Portfolio

PowerShares Dynamic Large Cap Value Portfolio

PowerShares Dynamic Mid Cap Growth Portfolio

PowerShares Dynamic Mid Cap Value Portfolio

PowerShares Dynamic Small Cap Growth Portfolio

PowerShares Dynamic Small Cap Value Portfolio

PowerShares Dynamic Biotechnology & Genome Portfolio

PowerShares Dynamic Food & Beverage Portfolio

PowerShares Dynamic Leisure and Entertainment Portfolio

PowerShares Dynamic Media Portfolio

PowerShares Dynamic Networking Portfolio

PowerShares Dynamic Pharmaceuticals Portfolio

PowerShares Dynamic Semiconductors Portfolio

PowerShares Dynamic Software Portfolio

PowerShares Zacks Micro Cap Portfolio

PowerShares Aerospace & Defense Portfolio

PowerShares Dynamic Telecommunications & Wireless Portfolio

PowerShares Value Line Timeliness Select Portfolio

PowerShares Dividend Achievers^TM Portfolio

PowerShares International Dividend Achievers^TM Portfolio

PowerShares Zacks Small Cap Portfolio

PowerShares Dynamic Building and Construction Portfolio

PowerShares Dynamic Energy Exploration and Production Portfolio

PowerShares Dynamic Insurance Portfolio

PowerShares Dynamic Oil and Gas Services Portfolio

PowerShares Dynamic Retail Portfolio

PowerShares Dynamic Utilities Portfolio

PowerShares Lux Nanotech Portfolio

PowerShares FTSE RAFI US 1000 Portfolio

PowerShares FTSE RAFI US 1500 Small-Mid Portfolio

PowerShares Water Resources Portfolio

PowerShares Dynamic Energy Sector Portfolio

PowerShares Dynamic Financial Sector Portfolio

PowerShares Dynamic Healthcare Sector Portfolio

PowerShares Dynamic Industrials Sector Portfolio

PowerShares Dynamic Large Cap Portfolio

PowerShares Dynamic MagniQuant Portfolio

PowerShares Dynamic Mid Cap Portfolio

PowerShares Dynamic Small Cap Portfolio

PowerShares Dynamic Technology Sector Portfolio

PowerShares Buyback Achievers^TM Portfolio

PowerShares Cleantech Portfolio

PowerShares Dynamic Banking Portfolio

PowerShares Dynamic Basic Materials Sector Portfolio

PowerShares Dynamic Consumer Discretionary Sector Portfolio

PowerShares Dynamic Consumer Staples Sector Portfolio

PowerShares Dynamic Healthcare Services Portfolio

PowerShares Financial Preferred Portfolio

PowerShares Global Listed Private Equity Portfolio

PowerShares DWA Technical Leaders Portfolio

PowerShares Value Line Industry Rotation Portfolio

PowerShares WilderHill Progressive Energy Portfolio

104

Board Considerations Regarding Continuation of Investment Advisory Agreement (Continued)

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

105

Board Considerations Regarding Continuation of Investment Advisory Agreement (Continued)

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

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

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

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

• higher than the median advisory fee of its ETF peer funds (except for the advisory fee of each of PowerShares Financial Preferred Portfolio, PowerShares Golden Dragon Halter USX China Portfolio and PowerShares International Dividend Achievers^TM Portfolio, which was lower than the median advisory fee of its ETF peer funds); and

• higher than the median advisory fee of its open-end index peer funds (except for the advisory fee of each of PowerShares DWA Technical Leaders Portfolio, PowerShares Dynamic Banking Portfolio, PowerShares Dynamic Financial Sector Portfolio, PowerShares Dynamic Insurance Portfolio, PowerShares Dynamic Mid Cap Growth Portfolio, PowerShares Dynamic Mid Cap Value Portfolio, PowerShares Dynamic OTC Portfolio, PowerShares Financial Preferred Portfolio, PowerShares FTSE RAFI US 1500 Small-Mid Portfolio, PowerShares Golden Dragon Halter USX China Portfolio, PowerShares International Dividend Achievers^TM Portfolio, PowerShares Value Line Industry Rotation Portfolio and PowerShares Value Line Timeliness Select Portfolio, which was equal to or lower than the median advisory fee of its open-end index peer funds, and there was no comparable data for PowerShares Dynamic Basic Materials Sector Portfolio); but

106

Board Considerations Regarding Continuation of Investment Advisory Agreement (Continued)

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

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

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

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

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.

107

Board Considerations Regarding Continuation of Investment Advisory Agreement (Continued)

the fee or expense was incurred, provided that no reimbursement would be made that would result in a Fund exceeding its Expense Cap. The Trustees considered whether the advisory fee rate for each Fund was reasonable in relation to the asset size of that Fund, and concluded that the flat advisory fee was reasonable and appropriate, noting the Fund expenses the Adviser has borne as a result of the Expense Cap.

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

108

Board Considerations Regarding Continuation of Investment Advisory Agreement (Continued)

At a meeting held on April 15, 2010, the Board of Trustees of the PowerShares Exchange-Traded Fund Trust (the "Trust"), including the Independent Trustees, unanimously approved the continuation of the Investment Advisory Agreement between Invesco PowerShares Capital Management LLC (the "Adviser") and the Trust for the following five series (each, a "Fund" and collectively, the "Funds"):

PowerShares FTSE NASDAQ Small Cap Portfolio

PowerShares NASDAQ Internet Portfolio

PowerShares NASDAQ-100 BuyWrite Portfolio

PowerShares NXQ Portfolio

PowerShares S&P 500 BuyWrite Portfolio

Nature, Extent and Quality of Services. In evaluating the nature, extent and quality of the Adviser's services, the Trustees reviewed information concerning the functions performed by the Adviser for the Funds, information describing the Adviser's current organization and projected staffing, including operations assistance provided by the Adviser's parent organization, Invesco Ltd., and the background and experience of the persons responsible for the day-to-day management of the Funds. The Trustees reviewed matters related to the Adviser's oversight of the execution of portfolio transactions on behalf of the Funds. The Trustees also reviewed information on the performance of the Funds and the performance of their underlying indices through December 31, 2009. The Trustees also reviewed reports on the correlation and tracking error between the underlying index and each Fund's performance, including a report of Ibbotson Associates, a consultant to the Independent Trustees, that analyzed the reasons for tracking error for certain PowerShares funds, as well as the Adviser's analysis of the tracking error between each Fund and its underlying index. The Trustees noted that, in each case, the correlation and tracking error for each Fund was within the targeted range set forth in the Trust's registration statement. The Trustees concluded that each Fund was correlated to its underlying index and that the tracking error for each Fund was within an acceptable range given that Fund's particular circumstances.

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

109

Board Considerations Regarding Continuation of Investment Advisory Agreement (Continued)

the annual unitary advisory fee is 0.70% for each of PowerShares FTSE NASDAQ Small Cap Portfolio and PowerShares NXQ Portfolio, 0.60% for PowerShares NASDAQ Internet Portfolio and 0.75% for each of PowerShares NASDAQ-100 BuyWrite Portfolio and PowerShares S&P 500 BuyWrite Portfolio, and that the Adviser pays all other expenses of each Fund, except that each Fund pays its brokerage expenses, taxes, interest and extraordinary expenses.

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.

110

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PROXY VOTING POLICIES AND PROCEDURES

QUARTERLY PORTFOLIOS

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

301 West Roosevelt Road
Wheaton, IL 60187

800.983.0903
www.invescopowershares.com

2010 Annual Report to Shareholders

April 30, 2010

PowerShares Aerospace & Defense Portfolio

PowerShares Cleantech^TM Portfolio

PowerShares DWA Technical Leaders^TM Portfolio

PowerShares Global Listed Private Equity Portfolio

PowerShares Golden Dragon Halter USX China Portfolio

PowerShares Lux Nanotech Portfolio

PowerShares NASDAQ-100 BuyWrite Portfolio

PowerShares S&P 500 BuyWrite Portfolio

PowerShares Value Line Industry Rotation Portfolio

PowerShares Value Line Timeliness^TM Select Portfolio

PowerShares Water Resources Portfolio

PowerShares WilderHill Clean Energy Portfolio

PowerShares WilderHill Progressive Energy Portfolio

Table of Contents

The Market Environment					2

Manager's Analysis					4

Frequency Distribution of Discounts & Premiums					32

Fees and Expenses					34

Specialty Portfolios

Schedules of Investments

PowerShares Aerospace & Defense Portfolio					36

PowerShares Cleantech^TM Portfolio					37

PowerShares DWA Technical Leaders^TM Portfolio					39

PowerShares Global Listed Private Equity Portfolio					41

PowerShares Golden Dragon Halter USX China Portfolio					42

PowerShares Lux Nanotech Portfolio					44

PowerShares NASDAQ-100 BuyWrite Portfolio					45

PowerShares S&P 500 BuyWrite Portfolio					47

PowerShares Value Line Industry Rotation Portfolio					53

PowerShares Value Line Timeliness^TM Select Portfolio					55

PowerShares Water Resources Portfolio					56

PowerShares WilderHill Clean Energy Portfolio					57

PowerShares WilderHill Progressive Energy Portfolio					59

Statements of Assets and Liabilities					60

Statements of Operations					62

Statements of Changes in Net Assets					64

Financial Highlights					69

Notes to Financial Statements					76

Report of Independent Registered Public Accounting Firm					93

Tax Information					94

Proxy Results					95

Trustees and Officers					96

Board Considerations Regarding Continuation of Investment Advisory Agreements					102

The Market Environment

This page intentionally left blank

Manager's Analysis

PowerShares Aerospace & Defense Portfolio (ticker: PPA)

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

For the fiscal year ended April 30, 2010, the Fund returned 44.36%. Over this same year, the Index returned 42.84%, while the S&P SuperComposite Aerospace & Defense Index returned 51.46%. The Fund benefited from positive performance in industrials, information technology and materials sectors. Fund performance was positive within each sector in which it was invested.

Industry Breakdown (% of the Fund's

Net Assets) as of April 30, 2010

Aerospace/Defense	54.0
Miscellaneous Manufacturing	14.4
Telecommunications	5.6
Computers	5.6
Metal Fabricate/Hardware	4.8
Electronics	4.0
Commercial Services	3.9
Engineering & Construction	2.6
Packaging & Containers	2.5
Auto Manufacturers	1.9
Software	0.8
Money Market Fund	0.0
Other	(0.1	)

Style Allocation (% of the Fund's

Total Investments) as of April 30, 2010

Large-Cap Value					46.7
Mid-Cap Value					20.8
Mid-Cap Growth					12.3
Small-Cap Growth					9.3
Large-Cap Growth					6.6
Small-Cap Value					4.3

Top Ten Fund Holdings (% of the Fund's

Net Assets) as of April 30, 2010

*Security*
Honeywell International, Inc.					6.9
United Technologies Corp.					6.6
Boeing Co. (The)					6.4
Lockheed Martin Corp.					6.0
General Dynamics Corp.					5.6
Precision Castparts Corp.					4.6
Northrop Grumman Corp.					4.6
Raytheon Co.					4.5
ITT Corp.					4.1
Goodrich Corp.					4.1
Total					53.4

Manager's Analysis (Continued)

PowerShares Aerospace & Defense Portfolio (ticker: PPA)

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

Fund Performance History (%) As of April 30, 2010

	Avg Ann^††						Fund Inception^†
	1 Year			3 Year			Avg Ann^††			Cumulative
Index
SPADE^TM Defense Index		42.84	%		-1.89	%		5.61	%		27.89	%
S&P SuperComposite Aerospace & Defense Index		51.46	%		0.69	%		9.34	%		49.46	%
DJ US Aerospace and Defense Index		48.50	%		-1.39	%		7.18	%		36.60	%
S&P 500^® Index		38.82	%		-5.04	%		1.76	%		8.17	%
Fund
NAV Return		44.36	%		-1.09	%		6.29	%		31.69	%
Share Price Return		44.47	%		-1.07	%		6.31	%		31.78	%

Fund Inception: October 26, 2005

Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2011. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.67%. In the Financial Highlights section of this Shareholder Report, the Fund's total net (subsidized) operating expense ratio was determined to be 0.66% while the Fund's total gross operating expense ratio was 0.69%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.

The S&P SuperComposite Aerospace & Defense Index, DJ US Aerospace and Defense Index, and S&P 500^®Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 34, 50, and 500 common stocks, respectively.

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

^†† Average annualized.

Manager's Analysis

PowerShares Cleantech^TM Portfolio (ticker: PZD)

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

For the fiscal year ended April 30, 2010, the Fund returned 30.16%. Over this same year, the Index returned 29.79%, while the NASDAQ Composite Index returned 43.32%. The Fund benefited from positive performance in the United States and in the industrials and information technology sectors. The Fund suffered from negative performance in Belgium, Spain and Canada.

Industry Breakdown (% of the Fund's

Net Assets) as of April 30, 2010

Electrical Components & Equipment	18.2
Miscellaneous Manufacturing	14.7
Semiconductors	9.5
Electronics	9.3
Environmental Control	9.1
Engineering & Construction	5.4
Software	5.2
Energy-Alternate Sources	5.1
Auto Parts & Equipment	3.8
Machinery-Diversified	3.7
Biotechnology	3.4
Electric	3.1
Telecommunications	3.1
Building Materials	2.0
Hand/Machine Tools	1.4
Chemicals	1.3
Computers	0.8
Healthcare-Services	0.6
Mining	0.3
Money Market Fund	0.0
Other	(0.0	)

Top Ten Fund Holdings (% of the Fund's

Net Assets) as of April 30, 2010

*Security*
First Solar, Inc.					2.9
Autodesk, Inc.					2.7
Johnson Controls, Inc.					2.7
Vestas Wind Systems A/S					2.7
Siemens AG					2.6
Novozymes A/S					2.6
Schneider Electric SA					2.6
Corning, Inc.					2.6
Roper Industries, Inc.					2.5
ANSYS, Inc.					2.4
Total					26.3

Style Allocation (% of the Fund's

Total Investments) as of April 30, 2010

Large-Cap Growth					36.5
Mid-Cap Growth					27.7
Mid-Cap Value					19.2
Large-Cap Value					7.4
Small-Cap Growth					4.7
Small-Cap Value					4.5

Manager's Analysis (Continued)

PowerShares Cleantech^TM Portfolio (ticker: PZD)

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

Fund Performance History (%) As of April 30, 2010

	Avg Ann^††						Fund Inception^†
	1 Year			3 Year			Avg Ann^††			Cumulative
Index
The Cleantech Index^TM		29.79	%		-2.68	%		0.34	%		1.21	%
NASDAQ Composite Index		43.32	%		-0.85	%		1.12	%		3.99	%
S&P 500^® Index		38.82	%		-5.04	%		-2.06	%		-7.01	%
Fund
NAV Return		30.16	%		-2.56	%		0.41	%		1.44	%
Share Price Return		28.45	%		-2.83	%		0.18	%		0.63	%

Fund Inception: October 24, 2006

Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2011. The Fund is currently subject to recapture, which may result in an increased expense ratio. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.73%. In the Financial Highlights section of this Shareholder Report, the Fund's total net (subsidized) operating expense ratio was determined to be 0.67% while the Fund's total gross operating expense ratio was 0.71%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.

The NASDAQ Composite Index and S&P 500^® Index "(the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 3,087 and 500 common stocks, respectively.

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

^†† Average annualized.

Manager's Analysis

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

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

For the fiscal year ended April 30, 2010, the Fund returned 51.28%. Over this same year, the Index returned 51.26%, while the S&P Citigroup Large Cap Growth Index returned 35.96%. The Fund benefited from positive performance in the industrials, consumer discretionary, and information technology sectors. The Fund suffered from negative performance in the telecommunication services sector.

Sector Breakdown (% of the Fund's

Net Assets) as of April 30, 2010

Consumer Discretionary	24.6
Industrials	18.2
Information Technology	15.3
Financials	14.2
Health Care	10.9
Materials	7.7
Telecommunication Services	3.3
Utilities	2.7
Energy	1.9
Consumer Staples	1.2
Money Market Fund	0.1
Other	(0.1	)

Style Allocation (% of the Fund's

Total Investments) as of April 30, 2010

Large-Cap Growth					42.1
Small-Cap Growth					25.2
Mid-Cap Value					17.0
Small-Cap Value					10.3
Large-Cap Value					4.3
Mid-Cap Growth					1.1

Top Ten Fund Holdings (% of the Fund's

Net Assets) as of April 30, 2010

*Security*
Apple, Inc.					3.8
American Tower Corp.					3.3
Ventas, Inc.					3.3
J.B. Hunt Transport Services, Inc.					2.5
Priceline.com, Inc.					2.4
Liberty Media Corp.					2.1
Dendreon Corp.					2.0
TRW Automotive Holdings Corp.					1.9
Henry Schein, Inc.					1.8
Precision Castparts Corp.					1.8
Total					24.9

Manager's Analysis (Continued)

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

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

Fund Performance History (%) As of April 30, 2010

	Avg Ann^††						Fund Inception^†
	1 Year			3 Year			Avg Ann^††			Cumulative
Index
Dorsey Wright Technical Leaders^TM Index		51.26	%		-6.03	%		-3.75	%		-11.40	%
S&P Citigroup Large Cap Growth Index		35.96	%		-2.10	%		-0.27	%		-0.86	%
Russell 3000 Growth Index		38.69	%		-1.93	%		-0.27	%		-0.85	%
S&P 500^® Index		38.82	%		-5.04	%		-3.13	%		-9.59	%
Fund
NAV Return		51.28	%		-5.67	%		-3.40	%		-10.36	%
Share Price Return		51.31	%		-5.77	%		-3.47	%		-10.59	%

Fund Inception: March 1, 2007

Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses during previous fiscal periods, absent which, performance during those fiscal periods would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2011. The Fund is currently subject to recapture, which may result in an increased expense ratio. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.68%. In the Financial Highlights section of this Shareholder Report, the Fund's total net (subsidized) operating expense ratio was determined to be 0.70% while the Fund's total gross operating expense ratio was 0.73%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.

The S&P Citigroup Large Cap Growth Index, Russell 3000 Growth Index, and S&P 500^® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 384, 1,936, and 500 common stocks, respectively.

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

^†† Average annualized.

Manager's Analysis

PowerShares Global Listed Private Equity Portfolio (ticker: PSP)

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

For the fiscal year ended April 30, 2010, the Fund returned 54.20%. Over this same year, the Index returned 63.97%, while the S&P Financials Index returned 51.62%. The Fund benefited from positive performance in the United States, and the industrials and information technology sectors. The Fund suffered from negative performance in Belgium, Spain and Canada. The Fund underperformed the Index due to the Fund's sampling methodology.

Industry Breakdown (% of the Fund's

Net Assets) as of April 30, 2010

Investment Companies	46.8
Holding Companies-Diversified	22.6
Venture Capital	13.9
Diversified Financial Services	9.4
Food	3.3
Electric	1.7
Water	1.6
Media	1.1
Money Market Fund	0.1
Other	(0.5	)

Style Allocation (% of the Fund's

Total Investments) as of April 30, 2010

Small-Cap Growth					35.8
Large-Cap Value					32.2
Mid-Cap Growth					18.6
Large-Cap Growth					13.4

Top Ten Fund Holdings (% of the Fund's

Net Assets) as of April 30, 2010

*Security*
Hal Trust					6.1
Leucadia National Corp.					5.7
Ratos AB					5.4
3i Group PLC					5.0
Eurazeo					4.1
Onex Corp.					4.1
Wendel					4.0
Jafco Co. Ltd.					3.6
Ares Capital Corp.					3.3
Hakon Invest AB					3.3
Total					44.6

Manager's Analysis (Continued)

PowerShares Global Listed Private Equity Portfolio (ticker: PSP)

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

Fund Performance History (%) As of April 30, 2010

	Avg Ann^††						Fund Inception^†
	1 Year			3 Year			Avg Ann^††			Cumulative
Index
Global Listed Private Equity Index^SM		63.97	%		-21.22	%		-15.73	%		-45.21	%
S&P Financials Index		51.62	%		-22.00	%		-17.88	%		-49.82	%
Fund
NAV Return		54.20	%		-24.99	%		-19.16	%		-52.66	%
Share Price Return		54.70	%		-24.96	%		-19.13	%		-52.59	%

Fund Inception: October 24, 2006

Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2011. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.78%. In the Financial Highlights section of this Shareholder Report, the Fund's total net (subsidized) operating expense ratio was determined to be 0.70% while the Fund's total gross operating expense ratio was 0.72%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.

The S&P Financials Index ("Benchmark Index") is an unmanaged index used as a measurement of change in stock market conditions based on the average performance of approximately 93 common stocks.

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

^†† Average annualized.

Manager's Analysis

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

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

For the fiscal year ended April 30, 2010, the Fund returned 44.51%. Over this same year, the Index returned 45.97%, while the MSCI China Index returned 41.40%. The Fund benefited from positive performance in the energy, information technology, and industrials sectors. The Fund did not suffer from negative performance in any of the sectors in which it was invested.

Sector Breakdown (% of the Fund's

Net Assets) as of April 30, 2010

Energy					20.8
Information Technology					18.6
Telecommunication Services					15.0
Industrials					12.9
Consumer Discretionary					8.8
Materials					7.3
Financials					6.4
Health Care					4.3
Utilities					3.5
Consumer Staples					2.4
Other					0.0

Style Allocation (% of the Fund's

Total Investments) as of April 30, 2010

Mid-Cap Value					35.3
Small-Cap Value					25.3
Large-Cap Growth					14.8
Mid-Cap Growth					11.9
Small-Cap Growth					10.2
Large-Cap Value					2.5

Top Ten Fund Holdings (% of the Fund's

Net Assets) as of April 30, 2010

*Security*
PetroChina Co. Ltd.					5.9
China Mobile Ltd.					5.9
Yanzhou Coal Mining Co. Ltd.					5.4
Baidu, Inc.					5.1
China Unicom Ltd.					4.9
CNOOC Ltd.					4.8
China Life Insurance Co. Ltd.					4.4
China Petroleum and Chemical Corp.					4.3
Aluminum Corp. of China Ltd.					4.2
China Telecom Corp. Ltd.					4.1
Total					49.0

Manager's Analysis (Continued)

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

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

Fund Performance History (%) As of April 30, 2010

	Avg Ann^††									Fund Inception^†
	1 Year			3 Year			5 Year			Avg Ann^††			Cumulative
Index
Halter USX China Index^SM		45.97	%		6.69	%		15.98	%		12.28	%		86.64	%
MSCI China Index		41.40	%		8.67	%		23.28	%		20.93	%		179.88	%
FTSE/Xinhua China Index		30.82	%		4.54	%		17.46	%		15.54	%		118.69	%
S&P 500^® Index		38.82	%		-5.04	%		2.63	%		2.29	%		13.02	%
Fund
NAV Return		44.51	%		6.17	%		15.13	%		11.61	%		80.73	%
Share Price Return		44.49	%		6.16	%		15.16	%		11.56	%		80.31	%

Fund Inception: December 9, 2004

Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2011. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.71%. In the Financial Highlights section of this Shareholder Report, the Fund's total net (subsidized) operating expense ratio was determined to be 0.70% while the Fund's total gross operating expense ratio was 0.71%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.

The MSCI China Index, FTSE/Xinhua China Index, and S&P 500^® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 101, 20, and 500 common stocks, respectively.

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

^†† Average annualized.

Manager's Analysis

PowerShares Lux Nanotech Portfolio (ticker: PXN)

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

For the fiscal year ended April 30, 2010, the Fund returned 36.39%. Over this same year, the Index returned 36.82%, while the S&P 500^® Index returned 38.82%. The Fund benefited from positive performance in information technology, materials and health care sectors. The Fund suffered negative performance in the industrials sector.

Industry Breakdown (% of the Fund's

Net Assets) as of April 30, 2010

Chemicals	16.1
Pharmaceuticals	12.9
Biotechnology	10.7
Electronics	9.4
Electrical Components & Equipment	8.1
Semiconductors	7.9
Miscellaneous Manufacturing	6.6
Computers	6.1
Energy-Alternate Sources	5.8
Software	5.1
Investment Companies	4.9
Commercial Services	3.6
Auto Manufacturers	3.0
Money Market Fund	0.0
Other	(0.2	)

Style Allocation (% of the Fund's

Total Investments) as of April 30, 2010

Mid-Cap Growth					66.4
Small-Cap Value					15.8
Mid-Cap Value					9.5
Large-Cap Growth					4.3
Large-Cap Value					4.0

Top Ten Fund Holdings (% of the Fund's

Net Assets) as of April 30, 2010

*Security*
Nanosphere, Inc.					6.1
Headwaters, Inc.					5.8
Symyx Technologies, Inc.					5.4
Accelrys, Inc.					5.1
Harris & Harris Group, Inc.					4.9
NVE Corp.					4.8
Veeco Instruments, Inc.					4.7
Abraxis Bioscience, Inc.					4.6
Flamel Technologies SA					4.6
FEI Co.					4.6
Total					50.6

Manager's Analysis (Continued)

PowerShares Lux Nanotech Portfolio (ticker: PXN)

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

Fund Performance History (%) As of April 30, 2010

	Avg Ann^††						Fund Inception^†
	1 Year			3 Year			Avg Ann^††			Cumulative
Index
Lux Nanotech Index^TM		36.82	%		-15.96	%		-8.70	%		-33.66	%
S&P 500^® Index		38.82	%		-5.04	%		1.76	%		8.17	%
Fund
NAV Return		36.39	%		-16.00	%		-8.21	%		-32.04	%
Share Price Return		36.08	%		-16.18	%		-8.26	%		-32.22	%

Fund Inception: October 26, 2005

Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2011. The Fund is currently subject to recapture, which may result in an increased expense ratio. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.89%. In the Financial Highlights section of this Shareholder Report, the Fund's total net (subsidized) operating expense ratio was determined to be 0.70% while the Fund's total gross operating expense ratio was 0.85%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.

Index performance results are based upon a hypothetical investment in its constituent securities. Index returns do no 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 actual results 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 S&P 500^® Index ("Benchmark Index") is an unmanaged index used as a measurement of change in stock market conditions based on the average performance of approximately 500 common stocks.

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

^†† Average annualized.

Manager's Analysis

PowerShares NASDAQ-100 BuyWrite Portfolio (ticker: PQBW)

The PowerShares NASDAQ-100 BuyWrite Portfolio seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of the CBOE NASDAQ-100 BuyWrite Index^TM (the "Index").

For the fiscal year ended April, 30 2010, the Fund returned 27.23%. Over this same year, the Index returned 28.69%, while the NASDAQ-100^® Index returned 44.44%. The Fund slightly underperformed the Index due to the relatively wide option bid-ask spreads which prevailed during monthly rebalance periods.

Industry Breakdown (% of the Fund's

Net Assets) as of April 30, 2010

Computers	24.0
Software	14.2
Internet	12.0
Telecommunications	9.4
Biotechnology	8.1
Semiconductors	7.7
Retail	5.6
Pharmaceuticals	4.8
Media	4.4
Healthcare-Products	2.1
Commercial Services	1.9
Transportation	1.3
Auto Manufacturers	1.0
Electronics	1.0
Lodging	0.7
Energy-Alternate Sources	0.6
Toys/Games/Hobbies	0.5
Distribution/Wholesale	0.4
Chemicals	0.4
Machinery-Construction & Mining	0.3
Environmental Control	0.3
Textiles	0.3
Engineering & Construction	0.2
Money Market Fund	0.0
Other	(1.2	)

Top Ten Fund Holdings (% of the Fund's

Net Assets) as of April 30, 2010

*Security*
Apple, Inc.					18.1
Microsoft Corp.					5.1
QUALCOMM, Inc.					4.3
Google, Inc.					4.3
Cisco Systems, Inc.					3.0
Oracle Corp.					3.0
Intel Corp.					2.4
Teva Pharmaceutical Industries Ltd.					2.4
Amazon.com, Inc.					2.2
Research In Motion Ltd.					2.2
Total					47.0

Style Allocation (% of the Fund's

Total Investments) as of April 30, 2010

Mid-Cap Value					71.3
Large-Cap Growth					17.2
Small-Cap Value					8.9
Small-Cap Growth					2.6

Manager's Analysis (Continued)

PowerShares NASDAQ-100 BuyWrite Portfolio (ticker: PQBW)

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

Fund Performance History (%) As of April 30, 2010

	Avg Ann^††			Fund Inception^†
	1 Year			Avg Ann^††			Cumulative
Index
CBOE Nasdaq-100 BuyWrite Index^TM		28.69	%		-0.28	%		-0.53	%
NASDAQ-100^® Index		44.44	%		-0.20	%		-0.37	%
S&P 500^® Index		38.82	%		-6.08	%		-11.32	%
Fund
NAV Return		27.23	%		-1.65	%		-3.09	%
Share Price Return		27.28	%		-1.73	%		-3.23	%

Fund Inception: June 12, 2008

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

^†† Average annualized.

Manager's Analysis

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

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

For the fiscal year ended April, 30 2010, the Fund returned 24.48%. Over this same year, the Index returned 25.62%, while the S&P 500^® Index returned 38.82%. The Fund slightly underperformed the Index due to the relatively wide option bid-ask spreads which prevailed during monthly rebalance periods.

Sector Breakdown (% of the Fund's

Net Assets) as of April 30, 2010

Information Technology	19.1
Financials	16.7
Health Care	11.7
Energy	11.3
Consumer Staples	11.0
Industrials	10.9
Consumer Discretionary	10.7
Utilities	3.5
Materials	3.5
Telecommunication Services	2.7
Other	(1.1	)

Style Allocation (% of the Fund's

Total Investments) as of April 30, 2010

Mid-Cap Value					45.0
Small-Cap Value					41.3
Large-Cap Growth					7.5
Small-Cap Growth					6.0
Large-Cap Value					0.1
Mid-Cap Growth					0.1

Top Ten Fund Holdings (% of the Fund's

Net Assets) as of April 30, 2010

*Security*
Exxon Mobil Corp.					3.0
Apple, Inc.					2.2
Microsoft Corp.					2.2
General Electric Co.					1.9
Procter & Gamble Co. (The)					1.7
Bank of America Corp.					1.7
Johnson & Johnson					1.7
Wells Fargo & Co.					1.6
JPMorgan Chase & Co.					1.6
International Business Machines Corp.					1.6
Total					19.2

Manager's Analysis (Continued)

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

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

Fund Performance History (%) As of April 30, 2010

	Avg Ann^††			Fund Inception^†
	1 Year			Avg Ann^††			Cumulative
Index
CBOE S&P 500 BuyWrite Index		25.62	%		-3.93	%		-9.03	%
S&P 500^® Index		38.82	%		-6.58	%		-14.69	%
Fund
NAV Return		24.48	%		-4.76	%		-10.87	%
Share Price Return		24.11	%		-4.75	%		-10.86	%

Fund Inception: December 20, 2007

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

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

^†† Average annualized.

Manager's Analysis

PowerShares Value Line Industry Rotation Portfolio (ticker: PYH)

The PowerShares Value Line Industry Rotation Portfolio (the "Fund") seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of the Value Line Industry Rotation Index (the "Index").

For the fiscal year ended April 30, 2010, the Fund returned 31.03%. Over this same year, the Index returned 30.51%, while the S&P Citigroup Large Cap Growth Index returned 35.96%. The Fund benefited from positive performance in consumer discretionary, consumer staples and information technology sectors. The Fund suffered negative performance in the industrials sector.

Manager's Analysis (Continued)

PowerShares Value Line Industry Rotation Portfolio (ticker: PYH)

Industry Breakdown (% of the Fund's

Net Assets) as of April 30, 2010

Retail	9.1
Media	8.1
Pharmaceuticals	6.5
Software	5.5
Commercial Services	5.4
Insurance	5.1
Computers	4.9
Apparel	4.7
Semiconductors	4.4
Chemicals	4.3
Auto Parts & Equipment	3.0
Household Products/Wares	2.9
Mining	2.8
Beverages	2.8
Investment Companies	2.7
Healthcare-Services	2.6
Cosmetics/Personal Care	2.5
Healthcare-Products	2.4
Coal	2.4
Agriculture	2.3
Oil & Gas	1.4
Transportation	1.4
Internet	1.4
Forest Products & Paper	1.4
Airlines	1.3
Telecommunications	1.3
Electronics	1.3
Pipelines	1.3
Home Furnishings	1.3
Electric	1.2
Miscellaneous Manufacturing	1.2
Food	1.2
Money Market Fund	0.1
Other	(0.2	)

Top Ten Fund Holdings (% of the Fund's

Net Assets) as of April 30, 2010

*Security*
Steven Madden Ltd.					1.7
Deckers Outdoor Corp.					1.6
TRW Automotive Holdings Corp.					1.6
Alliance Data Systems Corp.					1.6
American Greetings Corp.					1.6
Silver Wheaton Corp.					1.6
Ashland, Inc.					1.6
Teradyne, Inc.					1.5
Herbalife Ltd.					1.5
Salesforce.com, Inc.					1.5
Total					15.8

Style Allocation (% of the Fund's

Total Investments) as of April 30, 2010

Mid-Cap Growth					24.5
Large-Cap Growth					23.6
Small-Cap Growth					17.2
Mid-Cap Value					14.1
Large-Cap Value					11.7
Small-Cap Value					8.9

Manager's Analysis (Continued)

PowerShares Value Line Industry Rotation Portfolio (ticker: PYH)

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

Fund Performance History (%) As of April 30, 2010

	Avg Ann^††						Fund Inception^†
	1 Year			3 Year			Avg Ann^††			Cumulative
Index
Value Line Industry Rotation Index		30.51	%		-10.20	%		-6.12	%		-19.38	%
S&P 500 Citigroup Large Cap Growth Index		35.96	%		-2.10	%		-0.44	%		-1.50	%
Russell 3000 Growth Index		38.69	%		-1.93	%		0.04	%		0.15	%
S&P 500^® Index		38.82	%		-5.04	%		-2.64	%		-8.75	%
Fund
NAV Return		31.03	%		-9.90	%		-5.84	%		-18.56	%
Share Price Return		31.11	%		-9.90	%		-5.84	%		-18.56	%

Fund Inception: December 1, 2006

Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2011. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.95%. In the Financial Highlights section of this Shareholder Report, the Fund's total net (subsidized) operating expense ratio was determined to be 0.70% while the Fund's total gross operating expense ratio was 1.09%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.

The S&P 500 Citigroup Large Cap Growth Index, Russell 3000 Growth Index, and S&P 500^® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 384, 1,936, and 500 common stocks, respectively.

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

^†† Average annualized.

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Manager's Analysis

PowerShares Value Line Timeliness^TM Select Portfolio (ticker: PIV)

The PowerShares Value Line Timeliness^TM Select Portfolio (the "Fund") seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of the Value Line Timeliness(TM) Select Index (the "Index").

For the fiscal year ended April 30, 2010, the Fund returned 27.63%. Over this same year, the Index returned 27.48%, while the S&P Citigroup Large Cap Growth Index returned 35.96%. The Fund benefited from positive performance in consumer discretionary, health care and information technology sectors. The Fund suffered negative performance in industrials and energy sectors.

Sector Breakdown (% of the Fund's

Net Assets) as of April 30, 2010

Consumer Discretionary	35.1
Information Technology	29.5
Health Care	23.6
Consumer Staples	6.0
Financials	3.8
Telecommunication Services	2.0
Money Market Fund	0.1
Other	(0.1	)

Style Allocation (% of the Fund's

Total Investments) as of April 30, 2010

Large-Cap Growth					34.9
Mid-Cap Growth					30.8
Mid-Cap Value					19.4
Small-Cap Growth					7.5
Small-Cap Value					3.8
Large-Cap Value					3.6

Top Ten Fund Holdings (% of the Fund's

Net Assets) as of April 30, 2010

*Security*
Cirrus Logic, Inc.					3.2
Netflix, Inc.					2.7
Deckers Outdoor Corp.					2.5
Perrigo Co.					2.2
Salesforce.com, Inc.					2.2
Boston Beer Co., Inc.					2.2
CarMax, Inc.					2.1
Viacom, Inc.					2.1
Odyssey HealthCare, Inc.					2.1
Urban Outfitters, Inc.					2.1
Total					23.4

Manager's Analysis (Continued)

PowerShares Value Line Timeliness^TM Select Portfolio (ticker: PIV)

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

Fund Performance History (%) As of April 30, 2010

	Avg Ann^††						Fund Inception^†
	1 Year			3 Year			Avg Ann^††			Cumulative
Index
Value Line Timeliness^TM Select Index		27.48	%		-11.46	%		-5.39	%		-21.61	%
S&P Citigroup Large Cap Growth Index		35.96	%		-2.10	%		1.91	%		8.72	%
Russell 3000 Growth Index		38.69	%		-1.93	%		1.97	%		8.98	%
S&P 500^® Index		38.82	%		-5.04	%		0.94	%		4.23	%
Fund
NAV Return		27.63	%		-11.32	%		-5.21	%		-20.97	%
Share Price Return		27.63	%		-11.32	%		-5.31	%		-21.32	%

Fund Inception: December 6, 2005

Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2011. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.72%. In the Financial Highlights section of this Shareholder Report, the Fund's total net (subsidized) operating expense ratio was determined to be 0.70% while the Fund's total gross operating expense ratio was 0.80%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.

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

^†† Average annualized.

Manager's Analysis

PowerShares Water Resources Portfolio (ticker: PHO)

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

For the fiscal year ended April 30, 2010, the Fund returned 29.48%. Over this same year, the Index returned 29.31%, while the ISE Water Index returned 30.75%. The Fund benefited from positive performance in the industrials sector.

Industry Breakdown (% of the Fund's

Net Assets) as of April 30, 2010

Miscellaneous Manufacturing	18.2
Machinery-Diversified	17.8
Engineering & Construction	15.5
Electronics	12.3
Water	11.8
Environmental Control	10.9
Metal Fabricate/Hardware	9.9
Hand/Machine Tools	3.6
Money Market Fund	0.0
Other	(0.0	)

Style Allocation (% of the Fund's

Total Investments) as of April 30, 2010

Mid-Cap Growth					37.2
Large-Cap Growth					29.5
Large-Cap Value					10.7
Small-Cap Growth					10.3
Small-Cap Value					7.5
Mid-Cap Value					4.8

Top Ten Fund Holdings (% of the Fund's

Net Assets) as of April 30, 2010

*Security*
Tetra Tech, Inc.					5.1
URS Corp.					5.0
Aecom Technology Corp.					4.9
Valmont Industries, Inc.					4.9
Danaher Corp.					4.7
Itron, Inc.					4.7
Veolia Environnement					4.4
Ameron International Corp.					4.3
Roper Industries, Inc.					4.3
Badger Meter, Inc.					4.2
Total					46.5

Manager's Analysis (Continued)

PowerShares Water Resources Portfolio (ticker: PHO)

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

Fund Performance History (%) As of April 30, 2010

	Avg Ann^††						Fund Inception^†
	1 Year			3 Year			Avg Ann^††			Cumulative
Index
Palisades Water Index		29.31	%		0.61	%		6.17	%		30.11	%
ISE Water Index		30.75	%		1.09	%		7.13	%		35.53	%
S&P 500^® Index		38.82	%		-5.04	%		0.94	%		4.23	%
Fund
NAV Return		29.48	%		-1.55	%		4.44	%		21.06	%
Share Price Return		29.67	%		-1.55	%		4.18	%		19.73	%

Fund Inception: December 6, 2005

Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses during previous fiscal periods, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2011. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.64%. In the Financial Highlights section of this Shareholder Report, the Fund's total net (subsidized) operating expense ratio was determined to be 0.64% while the Fund's total gross operating expense ratio was 0.64%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.

The ISE Water Index and S&P 500^® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 36 and 500 common stocks, respectively.

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

^†† Average annualized.

Manager's Analysis

PowerShares WilderHill Clean Energy Portfolio (ticker: PBW)

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

For the fiscal year ended April 30, 2010, the Fund returned 12.07%. Over this same year, the Index returned 12.40%, while the NASDAQ Composite Index returned 43.32%. The Fund benefited from positive performance in China and the information technology and utilities sectors. The Fund suffered from negative performance in Canada and the industrials sector.

Industry Breakdown (% of the Fund's

Net Assets) as of April 30, 2010

Electrical Components & Equipment	26.4
Semiconductors	19.7
Energy-Alternate Sources	13.0
Electric	10.5
Chemicals	9.2
Computers	4.8
Auto Parts & Equipment	3.8
Electronics	3.0
Food	2.5
Miscellaneous Manufacturing	2.4
Commercial Services	2.3
Building Materials	2.0
Machinery-Diversified	0.4
Money Market Fund	0.0
Other	(0.0	)

Style Allocation (% of the Fund's

Total Investments) as of April 30, 2010

Mid-Cap Growth					56.9
Large-Cap Growth					23.0
Large-Cap Value					6.0
Small-Cap Growth					5.5
Mid-Cap Value					4.6
Small-Cap Value					4.0

Top Ten Fund Holdings (% of the Fund's

Net Assets) as of April 30, 2010

*Security*
Renesola Ltd.					3.1
Rubicon Technology, Inc.					3.1
First Solar, Inc.					2.9
JA Solar Holdings Co. Ltd.					2.9
Ormat Technologies, Inc.					2.7
Trina Solar Ltd.					2.6
Universal Display Corp.					2.6
Cosan Ltd.					2.5
Maxwell Technologies, Inc.					2.5
Itron, Inc.					2.5
Total					27.4

Manager's Analysis (Continued)

PowerShares WilderHill Clean Energy Portfolio (ticker: PBW)

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

Fund Performance History (%) As of April 30, 2010

	Avg Ann^††									Fund Inception^†
	1 Year			3 Year			5 Year			Avg Ann^††			Cumulative
Index
WilderHill Clean Energy Index		12.40	%		-20.30	%		-5.74	%		-8.99	%		-38.48	%
NASDAQ Composite Index		43.32	%		-0.85	%		5.07	%		3.58	%		19.96	%
S&P 500^® Index		38.82	%		-5.04	%		2.63	%		1.81	%		9.73	%
Fund
NAV Return		12.07	%		-19.35	%		-4.63	%		-8.01	%		-35.00	%
Share Price Return		12.46	%		-19.40	%		-4.62	%		-8.02	%		-35.02	%

Fund Inception: March 3, 2005

Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2011. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.69%. In the Financial Highlights section of this Shareholder Report, the Fund's total net (subsidized) operating expense ratio was determined to be 0.70% while the Fund's total gross operating expense ratio was 0.70%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.

The NASDAQ Composite Index and S&P 500^® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 3,087 and 500 common stocks, respectively.

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

^†† Average annualized.

Manager's Analysis

PowerShares WilderHill Progressive Energy Portfolio (ticker: PUW)

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

For the fiscal year ended April 30, 2010, the Fund returned 45.96%. Over this same year, the Index returned 45.19%, while the NASDAQ Composite Index returned 43.32%. The Fund benefited from positive performance in the United States and the industrials and energy sectors. The Fund suffered from negative performance in Spain and China.

Industry Breakdown (% of the Fund's

Net Assets) as of April 30, 2010

Electrical Components & Equipment	14.1
Oil & Gas	12.7
Miscellaneous Manufacturing	10.0
Electric	9.9
Auto Parts & Equipment	9.8
Chemicals	7.1
Engineering & Construction	4.8
Mining	4.6
Energy-Alternate Sources	4.5
Electronics	4.2
Environmental Control	3.4
Building Materials	3.2
Telecommunications	2.6
Agriculture	2.6
Semiconductors	2.2
Hand/Machine Tools	2.1
Computers	2.1
Money Market Fund	0.1
Other	(0.0	)

Top Ten Fund Holdings (% of the Fund's

Net Assets) as of April 30, 2010

*Security*
Owens Corning					3.2
Tenneco, Inc.					2.8
GrafTech International Ltd.					2.8
Sasol Ltd.					2.8
Questar Corp.					2.6
Corning, Inc.					2.6
Andersons, Inc. (The)					2.6
Rockwood Holdings, Inc.					2.5
USEC, Inc.					2.5
Hexcel Corp.					2.5
Total					26.9

Style Allocation (% of the Fund's

Total Investments) as of April 30, 2010

Mid-Cap Growth					31.0
Mid-Cap Value					18.3
Large-Cap Value					15.8
Small-Cap Value					15.5
Large-Cap Growth					10.0
Small-Cap Growth					9.4

Manager's Analysis (Continued)

PowerShares WilderHill Progressive Energy Portfolio (ticker: PUW)

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

Fund Performance History (%) As of April 30, 2010

	Avg Ann^††						Fund Inception^†
	1 Year			3 Year			Avg Ann^††			Cumulative
Index
WilderHill Progressive Energy Index		45.19	%		-4.18	%		0.26	%		0.92	%
NASDAQ Composite Index		43.32	%		-0.85	%		1.12	%		3.99	%
S&P 500^® Index		38.82	%		-5.04	%		-2.06	%		-7.01	%
Fund
NAV Return		45.96	%		-3.70	%		0.76	%		2.71	%
Share Price Return		45.96	%		-3.71	%		0.77	%		2.75	%

Fund Inception: October 24, 2006

Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2011. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.86%. In the Financial Highlights section of this Shareholder Report, the Fund's total net (subsidized) operating expense ratio was determined to be 0.70% while the Fund's total gross operating expense ratio was 0.84%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.

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

^†† Average annualized.

Frequency Distribution of Discounts & Premiums

Since Inception through April 30, 2010

					Closing Price Above NAV (bps)
Ticker	Fund Name	Inception	Trading Days		0-24		25-49		50-99		100-149		150-199		200+
PPA	PowerShares Aerospace & Defense Portfolio	10/26/05		1135		401		15		2		1		0		3
PZD	PowerShares Cleantech^TM Portfolio	10/24/06		885		224		87		91		24		4		3
PDP	PowerShares DWA Technical Leaders^TMPortfolio	3/1/07		799		279		13		8		0		0		0
PSP	PowerShares Global Listed Private Equity Portfolio	10/24/06		885		290		84		79		19		9		5
PGJ	PowerShares Golden Dragon Halter USX China Portfolio	12/9/04		1357		562		138		21		2		0		0
PXN	PowerShares Lux Nanotech Portfolio	10/26/05		1135		361		70		21		5		1		1
PQBW	PowerShares NASDAQ-100 BuyWrite Portfolio	6/12/08		441		82		73		66		16		14		48
PBP	PowerShares S&P 500 BuyWrite Portfolio	12/20/07		593		198		108		83		19		7		13
PYH	PowerShares Value Line Industry Rotation Portfolio	12/1/06		858		268		11		6		3		0		1
PIV	PowerShares Value Line Timeliness^TMSelect Portfolio	12/6/05		1107		376		32		5		2		2		1
PHO	PowerShares Water Resources Portfolio	12/6/05		1107		438		97		19		1		0		0
PBW	PowerShares WilderHill Clean Energy Portfolio	3/3/05		1300		533		126		25		6		0		0
PUW	PowerShares WilderHill Progressive Energy Portfolio	10/24/06		885		295		23		5		0		0		0

	Closing Price Below NAV (bps)
Ticker	-0-24		-25-49		-50-99		-100-149		-150-199		-200+
PPA		689		14		9		0		0		1
PZD		346		53		39		10		1		3
PDP		467		24		8		0		0		0
PSP		314		41		31		13		0		0
PGJ		541		76		13		3		0		1
PXN		578		78		15		3		1		1
PQBW		86		31		14		1		5		5
PBP		146		10		7		0		1		1
PYH		552		14		3		0		0		0
PIV		671		13		3		0		1		1
PHO		500		38		13		1		0		0
PBW		505		88		14		1		1		1
PUW		538		21		3		0		0		0

Fees and Expenses

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

The example is based on an investment of $1,000 invested at the beginning of the period and held through the six-month period ended April 30, 2010.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value November 1, 2009		Ending Account Value April 30, 2010		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During the Six-Month Period ⁽¹⁾
PowerShares Aerospace & Defense Portfolio Actual	$	1,000.00	$	1,243.82		0.66	%	$	3.67
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.52		0.66	%	$	3.31
PowerShares Cleantech^TM Portfolio Actual	$	1,000.00	$	1,116.68		0.68	%	$	3.57
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.42		0.68	%	$	3.41
PowerShares DWA Technical Leaders^TMPortfolio Actual	$	1,000.00	$	1,263.14		0.70	%	$	3.93
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.32		0.70	%	$	3.51
PowerShares Global Listed Private Equity Portfolio Actual	$	1,000.00	$	1,157.10		0.70	%	$	3.74
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.32		0.70	%	$	3.51
PowerShares Golden Dragon Halter USX China Portfolio Actual	$	1,000.00	$	1,138.94		0.70	%	$	3.71
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.32		0.70	%	$	3.51

Fees and Expenses (Continued)

	Beginning Account Value November 1, 2009		Ending Account Value April 30, 2010		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During the Six-Month Period ⁽¹⁾
PowerShares Lux Nanotech Portfolio Actual	$	1,000.00	$	1,078.20		0.70	%	$	3.61
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.32		0.70	%	$	3.51
PowerShares NASDAQ-100 BuyWrite Portfolio Actual	$	1,000.00	$	1,100.16		0.75	%	$	3.91
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.08		0.75	%	$	3.76
PowerShares S&P 500 BuyWrite Portfolio Actual	$	1,000.00	$	1,089.92		0.75	%	$	3.89
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.08		0.75	%	$	3.76
PowerShares Value Line Industry Rotation Portfolio Actual	$	1,000.00	$	1,216.91		0.70	%	$	3.85
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.32		0.70	%	$	3.51
PowerShares Value Line Timeliness^TM Select Portfolio Actual	$	1,000.00	$	1,194.71		0.70	%	$	3.81
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.32		0.70	%	$	3.51
PowerShares Water Resources Portfolio Actual	$	1,000.00	$	1,153.95		0.63	%	$	3.36
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.67		0.63	%	$	3.16
PowerShares WilderHill Clean Energy Portfolio Actual	$	1,000.00	$	1,044.37		0.70	%	$	3.55
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.32		0.70	%	$	3.51
PowerShares WilderHill Progressive Energy Portfolio Actual	$	1,000.00	$	1,186.70		0.70	%	$	3.80
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.32		0.70	%	$	3.51

Schedule of Investments

PowerShares Aerospace & Defense Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks—100.1%
		Aerospace/Defense—54.0%
	26,569	AAR Corp.*	$	647,752
	14,739	Aerovironment, Inc.*		385,867
	22,478	Alliant Techsystems, Inc.*		1,818,695
	14,878	Argon ST, Inc.*		386,828
	122,012	Boeing Co. (The)		8,837,329
	18,199	Cubic Corp.		679,005
	7,114	Ducommun, Inc.		162,839
	28,694	Elbit Systems Ltd. (Israel)		1,768,985
	20,308	Esterline Technologies Corp.*		1,132,780
	39,828	GenCorp, Inc.*		247,730
	100,444	General Dynamics Corp.		7,669,904
	76,116	Goodrich Corp.		5,646,285
	10,809	Kratos Defense & Security Solutions, Inc.*		154,028
	57,954	L-3 Communications Holdings, Inc.		5,422,756
	98,080	Lockheed Martin Corp.		8,326,011
	30,891	Moog, Inc., Class A*		1,148,219
	92,776	Northrop Grumman Corp.		6,292,996
	38,777	Orbital Sciences Corp.*		712,721
	106,122	Raytheon Co.		6,186,913
	85,800	Rockwell Collins, Inc.		5,577,000
	24,652	Teledyne Technologies, Inc.*		1,074,827
	11,348	Triumph Group, Inc.		880,151
	120,308	United Technologies Corp.		9,017,085
				74,176,706
		Auto Manufacturers—1.9%
	47,796	Force Protection, Inc.*		255,708
	60,953	Oshkosh Corp.*		2,354,005
				2,609,713
		Commercial Services—3.9%
	38,321	DynCorp International, Inc., Class A*		659,121
	269,690	SAIC, Inc.*		4,695,303
				5,354,424
		Computers—5.6%
	20,520	CACI International, Inc., Class A*		973,264
	99,024	Computer Sciences Corp.*		5,187,867
	11,842	Integral Systems, Inc.*		103,262
	16,043	Mercury Computer Systems, Inc.*		206,313
	9,184	NCI, Inc., Class A*		260,917
	38,644	SRA International, Inc., Class A*		891,904
				7,623,527
		Electronics—4.0%
	6,127	American Science & Engineering, Inc.		460,444
	60,970	Cogent, Inc.*		631,040
	104,134	FLIR Systems, Inc.*		3,185,459
	23,486	ICx Technologies, Inc.*		165,576
	62,817	L-1 Identity Solutions, Inc.*		544,624
	12,101	OSI Systems, Inc.*		315,110
	42,521	Taser International, Inc.*		201,124
				5,503,377

Number of Shares			Value
		Common Stocks (Continued)
		Engineering & Construction—2.6%
	16,394	Stanley, Inc.*	$	518,542
	57,194	URS Corp.*		2,936,912
	3,522	VSE Corp.		141,549
				3,597,003
		Metal Fabricate/Hardware—4.8%
	10,827	Ladish Co., Inc.*		297,634
	49,110	Precision Castparts Corp.		6,302,778
				6,600,412
		Miscellaneous Manufacturing—14.4%
	17,297	Ceradyne, Inc.*		383,994
	198,564	Honeywell International, Inc.		9,425,833
	102,462	ITT Corp.		5,693,813
	185,676	Textron, Inc.		4,240,840
				19,744,480
		Packaging & Containers—2.5%
	64,098	Ball Corp.		3,410,655
		Software—0.8%
	24,508	ManTech International Corp., Class A*		1,103,595
		Telecommunications—5.6%
	9,058	Applied Signal Technology, Inc.		169,294
	19,249	Comtech Telecommunications Corp.*		601,339
	30,815	DigitalGlobe, Inc.*		818,447
	10,397	EMS Technologies, Inc.*		165,208
	14,368	GeoEye, Inc.*		409,488
	89,136	Harris Corp.		4,588,721
	25,893	ViaSat, Inc.*		917,907
				7,670,404
		Total Common Stocks (Cost $159,525,596)		137,394,296
		Money Market Fund—0.0%
	53,015	Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $53,015)		53,015
		Total Investments (Cost $159,578,611)—100.1%		137,447,311
		Liabilities in excess of other assets—(0.1%)		(109,761	)
		Net Assets—100.0%	$	137,337,550

Notes to Schedule of Investments:

* Non-income producing security.

See Notes to Financial Statements.

Schedule of Investments

PowerShares Cleantech^TM Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks and Other Equity Interests—99.8%
		Auto Parts & Equipment—3.8%
	34,862	Fuel Systems Solutions, Inc.*	$	1,097,107
	127,595	Johnson Controls, Inc.		4,285,916
	40,247	Westport Innovations, Inc. (Canada)*		770,886
				6,153,909
		Biotechnology—3.4%
	56,193	Martek Biosciences Corp.*		1,237,932
	34,572	Novozymes A/S, Class B (Denmark)		4,151,159
				5,389,091
		Building Materials—2.0%
	252,759	Kingspan Group PLC (Ireland)*		2,361,067
	29,622	WaterFurnace Renewable Energy, Inc. (Canada)		862,763
				3,223,830
		Chemicals—1.3%
	1,382	Gurit Holding AG (Switzerland)		764,074
	145,358	Plant Health Care PLC (United Kingdom)*		498,648
	80,678	Zoltek Cos., Inc.*		793,872
				2,056,594
		Computers—0.8%
	44,665	Telvent GIT SA (Spain)*		1,290,819
		Electric—3.1%
	20,182,000	Energy Development Corp. (Philippines)		2,420,262
	26,602	EnerNOC, Inc.*		773,586
	56,168	Ormat Technologies, Inc.		1,789,512
				4,983,360
		Electrical Components & Equipment—18.2%
	26,076	A123 Systems, Inc.*		324,907
	57,555	American Superconductor Corp.*		1,679,455
	1,105,095	China High Speed Transmission Equipment Group Co. Ltd. (China)		2,619,032
	404,156	Chloride Group PLC (United Kingdom)		1,851,412
	74,655	EnerSys*		1,932,071
	213,056	Gamesa Corp. Tecnologica SA (Spain)		2,614,470
	45,369	Saft Groupe SA (France)		1,645,808
	36,465	Schneider Electric SA (France)		4,134,217
	30,300	SMA Solar Technology AG (Germany)		3,668,764
	118,152	SunPower Corp., Class A*		1,955,416
	177,063	Suntech Power Holdings Co. Ltd. ADR (China)*		2,408,057
	70,041	Vestas Wind Systems A/S (Denmark)*		4,268,082
				29,101,691
		Electronics—9.3%
	26,832	Badger Meter, Inc.		1,109,772
	24,432	Dionex Corp.*		1,992,918
	61,500	Horiba Ltd. (Japan)		1,813,575
	34,197	Itron, Inc.*		2,722,423

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	27,716	Roth & Rau AG (Germany)*	$	906,124
	105,131	Trimble Navigation Ltd.*		3,438,835
	21,427	Vaisala Oyj, Class A (Finland)		631,768
	69,130	Woodward Governor Co.		2,215,617
				14,831,032
		Energy - Alternate Sources—5.1%
	32,366	First Solar, Inc.*		4,646,139
	901,594	Iberdrola Renovables SA (Spain)		3,490,592
				8,136,731
		Engineering & Construction—5.4%
	194,695	ABB Ltd. (Switzerland)*		3,728,134
	103,117	Arcadis NV (Netherlands)		2,226,866
	43,338	Grontmij NV CVA (Netherlands)		1,007,360
	69,623	Insituform Technologies, Inc., Class A*		1,668,863
				8,631,223
		Environmental Control—9.1%
	61,974	Asahi Holdings, Inc. (Japan)		1,050,764
	29,700	BWT AG (Austria)		901,965
	125,979	Energy Recovery, Inc.*		759,653
	63,581	Fuel Tech, Inc.*		477,493
	758,000	Hyflux Ltd. (Singapore)		1,902,607
	104,000	Kurita Water Industries Ltd. (Japan)		3,004,923
	125,808	Nalco Holding Co.		3,111,232
	93,913	Tetra Tech, Inc.*		2,286,782
	223,548	Tomra Systems ASA (Norway)		1,071,261
				14,566,680
		Hand/Machine Tools—1.4%
	57,866	Baldor Electric Co.		2,222,633
		Healthcare - Services—0.6%
	21,369	Eurofins Scientific (France)		948,431
		Machinery - Diversified—3.7%
	47,412	Kadant, Inc.*		948,714
	25,461	Lindsay Corp.		968,282
	66,292	Roper Industries, Inc.		4,045,138
				5,962,134
		Mining—0.3%
	100,506	5N Plus, Inc. (Canada)*		545,770
		Miscellaneous Manufacturing—14.7%
	62,315	CLARCOR, Inc.		2,356,753
	64,645	Donaldson Co., Inc.		2,993,064
	48,693	ESCO Technologies, Inc.		1,502,179
	936,743	Hansen Transmissions International NV (Belgium)*		1,436,694
	127,847	Hexcel Corp.*		2,071,121
	94,582	Pall Corp.		3,687,752
	61,996	Polypore International, Inc.*		1,097,949

See Notes to Financial Statements.

Schedule of Investments (Continued)

PowerShares Cleantech^TM Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	42,834	Siemens AG (Germany)	$	4,218,844
	45,946	SPX Corp.		3,210,707
	43,590	STR Holdings, Inc.*		1,005,185
				23,580,248
		Semiconductors—9.3%
	81,863	Aixtron AG (Germany)		2,582,719
	28,840	Centrotherm Photovoltaics AG (Germany)*		1,189,282
	53,446	Cree, Inc.*		3,912,782
	197,074	GT Solar International, Inc.*		1,148,941
	202,030	MEMC Electronic Materials, Inc.*		2,620,329
	44,259	Power Integrations, Inc.		1,703,086
	503,236	Renewable Energy Corp. ASA (Norway)*		1,708,047
				14,865,186
		Software—5.2%
	87,041	ANSYS, Inc.*		3,916,845
	127,361	Autodesk, Inc.*		4,331,548
				8,248,393
		Telecommunications—3.1%
	212,756	Corning, Inc.		4,095,553
	39,499	RuggedCom, Inc. (Canada)*		807,256
				4,902,809
		Total Common Stocks and Other Equity Interests (Cost $159,527,220)		159,640,564
		Rights—0.2%
		Semiconductors—0.2%
	251,618	Renewable Energy Corp. ASA (Norway),
		expiring 05/20/10*
		(Cost $836,191)		348,552
		Money Market Fund—0.0%
	49,854	Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $49,854)		49,854
		Total Investments (Cost $160,413,265)—100.0%		160,038,970
		Liabilities in excess of other assets—(0.0%)		(17,818	)
		Net Assets—100.0%	$	160,021,152

Investment Abbreviations:

ADR—American Depositary Receipt

Notes to Schedule of Investments:

* Non-income producing security.

See Notes to Financial Statements.

Schedule of Investments

PowerShares DWA Technical Leaders^TM Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—24.6%
	30,811	Aeropostale, Inc.*	$	894,751
	26,387	Big Lots, Inc.*		1,007,983
	47,659	Brinker International, Inc.		882,645
	31,987	Central European Media Enterprises Ltd., Class A (Bermuda)*		1,087,558
	100,661	Chico's FAS, Inc.		1,498,842
	62,408	CTC Media, Inc.		1,054,071
	63,531	Federal Mogul Corp.*		1,208,360
	154,626	Ford Motor Co.*		2,013,231
	79,817	Gannett Co., Inc.		1,358,485
	22,161	John Wiley & Sons, Inc., Class A		936,745
	27,850	Lamar Advertising Co., Class A*		1,036,577
	101,732	Las Vegas Sands Corp.*		2,529,058
	74,292	Liberty Media Corp. - Capital, Series A*		3,288,907
	83,769	Liberty Media Corp. - Interactive, Class A*		1,287,530
	21,242	Netflix, Inc.*		2,098,072
	22,860	Nordstrom, Inc.		944,804
	249,810	Office Depot, Inc.*		1,713,697
	24,036	Polo Ralph Lauren Corp.		2,160,836
	14,589	Priceline.com, Inc.*		3,823,047
	29,409	Royal Caribbean Cruises Ltd.*		1,054,019
	25,762	Signet Jewelers Ltd. (United Kingdom)*		824,899
	15,672	Stanley Black & Decker, Inc.		974,015
	95,686	TRW Automotive Holdings Corp.*		3,082,046
	52,485	Virgin Media, Inc.		923,211
	57,764	Wyndham Worldwide Corp.		1,548,653
				39,232,042
		Consumer Staples—1.2%
	25,714	Central European Distribution Corp.*		890,990
	17,733	J.M. Smucker Co. (The)		1,082,954
				1,973,944
		Energy—1.9%
	16,911	Massey Energy Co.		619,450
	31,820	Noble Energy, Inc.		2,431,048
				3,050,498
		Financials—14.2%
	44,652	AmeriCredit Corp.*		1,068,969
	74,444	Brandywine Realty Trust REIT		948,416
	63,379	CB Richard Ellis Group, Inc., Class A*		1,097,724
	21,777	Digital Realty Trust, Inc. REIT		1,278,310
	157,647	Fifth Third Bancorp		2,350,517
	166,878	Genworth Financial, Inc., Class A*		2,756,825
	23,824	Hanover Insurance Group, Inc. (The)		1,073,271
	120,196	HRPT Properties Trust REIT		942,337
	27,544	Lincoln National Corp.		842,571
	34,216	Macerich Co. (The) REIT		1,529,797
	17,216	SL Green Realty Corp. REIT		1,070,319
	111,879	Ventas, Inc. REIT		5,284,045

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	3,021	White Mountains Insurance Group Ltd.	$	1,038,016
	70,385	XL Capital Ltd., Class A		1,252,853
				22,533,970
		Health Care—10.9%
	61,519	Brookdale Senior Living, Inc.*		1,322,658
	58,557	Dendreon Corp.*		3,174,961
	24,174	Edwards Lifesciences Corp.*		2,491,856
	9,890	Express Scripts, Inc.*		990,286
	193,649	Health Management Associates, Inc., Class A*		1,804,809
	47,387	Henry Schein, Inc.*		2,865,492
	17,856	Medco Health Solutions, Inc.*		1,052,076
	19,244	Perrigo Co.		1,174,461
	184,370	Tenet Healthcare Corp.*		1,152,312
	29,532	Valeant Pharmaceuticals International*		1,328,940
				17,357,851
		Industrials—18.2%
	28,691	BE Aerospace, Inc.*		852,410
	13,964	Bucyrus International, Inc.		879,872
	33,271	CSX Corp.		1,864,840
	15,841	Danaher Corp.		1,335,079
	20,237	Deere & Co.		1,210,577
	33,133	Donaldson Co., Inc.		1,534,058
	22,585	Flowserve Corp.		2,587,789
	27,027	Gardner Denver, Inc.		1,359,188
	14,667	Goodrich Corp.		1,087,998
	28,385	IDEX Corp.		953,736
	109,118	J.B. Hunt Transport Services, Inc.		4,022,089
	25,182	Norfolk Southern Corp.		1,494,048
	31,362	Oshkosh Corp.*		1,211,200
	21,930	Precision Castparts Corp.		2,814,496
	39,618	Republic Services, Inc.		1,229,347
	40,991	Textron, Inc.		936,234
	17,472	Union Pacific Corp.		1,321,932
	12,803	United Technologies Corp.		959,585
	12,148	W.W. Grainger, Inc.		1,342,840
				28,997,318
		Information Technology—15.3%
	100,143	Advanced Micro Devices, Inc.*		907,296
	32,902	Amphenol Corp., Class A		1,520,401
	52,042	ANSYS, Inc.*		2,341,890
	23,076	Apple, Inc.*		6,025,605
	15,519	Cree, Inc.*		1,136,146
	18,776	Dolby Laboratories, Inc., Class A*		1,290,287
	16,862	F5 Networks, Inc.*		1,153,867
	18,481	FactSet Research Systems, Inc.		1,390,141
	73,849	JDS Uniphase Corp.*		959,298
	5,782	MasterCard, Inc., Class A		1,434,167
	24,386	Rovi Corp.*		950,566
	24,646	Salesforce.com, Inc.*		2,109,698
	31,362	SanDisk Corp.*		1,251,030

See Notes to Financial Statements.

Schedule of Investments (Continued)

PowerShares DWA Technical Leaders^TM Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	62,676	Seagate Technology (Cayman Islands)*	$	1,151,358
	18,771	Sybase, Inc.*		814,286
				24,436,036
		Materials—7.7%
	29,178	Ashland, Inc.		1,737,842
	45,173	Ball Corp.		2,403,655
	13,339	Cliffs Natural Resources, Inc.		834,088
	80,014	Huntsman Corp.		912,960
	38,443	International Paper Co.		1,027,966
	16,453	Lubrizol Corp. (The)		1,486,364
	39,205	RPM International, Inc.		865,646
	28,951	Sigma-Aldrich Corp.		1,716,794
	14,943	Walter Energy, Inc.		1,207,544
				12,192,859
		Telecommunication Services—3.3%
	130,300	American Tower Corp., Class A*		5,317,543
		Utilities—2.7%
	42,137	Energen Corp.		2,059,235
	16,758	National Fuel Gas Co.		871,751
	27,392	ONEOK, Inc.		1,346,043
				4,277,029
		Total Common Stocks and Other Equity Interests (Cost $126,166,330)		159,369,090
		Money Market Fund—0.1%
	156,526	Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $156,526)		156,526
		Total Investments (Cost $126,322,856)—100.1%		159,525,616
		Liabilities in excess of other assets—(0.1%)		(154,306	)
		Net Assets—100.0%	$	159,371,310

Investment Abbreviations:

REIT—Real Estate Investment Trust

Notes to Schedule of Investments:

* Non-income producing security.

See Notes to Financial Statements.

Schedule of Investments

PowerShares Global Listed Private Equity Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.4%
		Diversified Financial Services—9.4%
	643,683	Brait SA (South Africa)	$	1,817,042
	600,100	GP Investments Ltd. (Bermuda)*		2,742,621
	1,557,787	Intermediate Capital Group PLC (United Kingdom)		6,710,761
	295,844	Onex Corp. (Canada)		8,596,227
				19,866,651
		Electric—1.7%
	162,108	Otter Tail Corp.		3,602,040
		Food—3.3%
	405,007	Hakon Invest AB (Sweden)		6,942,631
		Holding Companies-Diversified—22.6%
	98,225	Ackermans & van Haaren NV (Belgium)		6,771,577
	157,262	Compass Diversified Holdings		2,283,444
	122,962	Hal Trust (Netherlands)		12,938,467
	238,923	Latour Investment AB, Class B (Sweden)		3,415,795
	476,244	Leucadia National Corp.		12,053,735
	78,716	Schouw & Co. (Denmark)		1,883,926
	131,126	Wendel (France)		8,474,824
				47,821,768
		Investment Companies—46.8%
	951,728	American Capital Ltd.*		5,843,610
	413,902	AP Alternative Assets LP (United Kingdom)*		2,822,812
	564,502	Apollo Investment Corp.		6,864,344
	444,188	Ares Capital Corp.		7,044,822
	239,606	BlackRock Kelso Capital Corp.		2,542,220
	19,069	Capital Southwest Corp.		1,793,439
	498,945	CapMan Oyj, Class B (Finland)		1,151,686
	1,028,000	China Merchants China Direct Investments Ltd. (Hong Kong)*		2,420,426
	1,039,957	DeA Capital SpA (Italy)*		1,722,449
	144,521	Electra Private Equity PLC (United Kingdom)*		3,116,317
	126,875	Eurazeo (France)		8,784,755
	204,994	Fifth Street Finance Corp.		2,613,673
	99,502	Gladstone Capital Corp.		1,335,317
	374,568	Graphite Enterprise Trust PLC (United Kingdom)		1,905,785
	253,087	Harris & Harris Group, Inc.*		1,227,472
	168,526	Hercules Technology Growth Capital, Inc.		1,826,822
	139,251	HgCapital Trust PLC (United Kingdom)		1,771,090
	394,737	Hosken Consolidated Investments Ltd. (South Africa)*		4,345,345
	72,376	Kayne Anderson Energy Development Co.*		1,170,320
	216,340	Kohlberg Capital Corp.		1,222,321
	1,578,179	LMS Capital PLC (United Kingdom)*		1,207,199
	1,561,530	Macquarie Korea Infrastructure Fund (South Korea)		6,720,348

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	76,658	Main Street Capital Corp.	$	1,214,263
	340,582	MCG Capital Corp.*		2,258,059
	130,897	MVC Capital, Inc.		1,849,575
	137,649	NGP Capital Resources Co.		1,053,015
	94,481	Paris Orleans et Cie SA (France)		2,417,618
	170,129	PennantPark Investment Corp.		1,861,211
	294,573	Prospect Capital Corp.		3,425,884
	363,904	Ratos AB, Class B (Sweden)		11,379,596
	342,113	RHJ International (Belgium)*		2,921,476
	177,916	TICC Capital Corp.		1,266,762
				99,100,031
		Media—1.1%
	1,201,480	Southern Cross Media Group Ltd. (Australia)		2,424,649
		Venture Capital—13.9%
	2,584,949	3i Group PLC (United Kingdom)		10,667,696
	223,522	Altamir Amboise (France)*		1,836,926
	77,094	Deutsche Beteiligungs AG (Germany)		1,771,389
	85,727	Dinamia SA (Spain)*		1,145,780
	78,218	Gimv NV (Belgium)		4,233,438
	1,878,785	IP Group PLC (United Kingdom)*		1,207,820
	245,660	Jafco Co. Ltd. (Japan)*		7,522,923
	10,115,000	K1 Ventures Ltd. (Singapore)		1,213,756
				29,599,728
		Water—1.6%
	95,746	Pico Holdings, Inc.*		3,403,770
		Total Common Stocks and Other Equity Interests (Cost $188,606,091)		212,761,268
		Money Market Fund—0.1%
	135,318	Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $135,318)		135,318
		Total Investments (Cost $188,741,409)—100.5%		212,896,586
		Liabilities in excess of other assets—(0.5%)		(1,017,128	)
		Net Assets—100.0%	$	211,879,458

Notes to Schedule of Investments:

* Non-income producing security.

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

United Kingdom	13.9	%
Sweden	10.3
France	10.2

See Notes to Financial Statements.

Schedule of Investments

PowerShares Golden Dragon Halter USX China Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Bermuda—0.5%
	79,374	China Yuchai International Ltd.	$	1,674,791
	94,869	Global Sources Ltd.*		695,390
				2,370,181
		British Virgin Islands—0.7%
	106,368	Hollysys Automation Technologies Ltd.*		1,103,036
	48,997	Origin Agritech Ltd.*		429,214
	183,895	Renesola Ltd. ADR*		1,436,220
	26,202	Tongxin International Ltd.*		200,183
				3,168,653
		Canada—0.7%
	346,509	Silvercorp Metals, Inc.		2,851,769
		Cayman Islands—10.8%
	45,797	3SBio, Inc. ADR*		545,900
	107,038	7 Days Group Holdings Ltd. ADR*		1,123,899
	163,964	Actions Semiconductor Co. Ltd. ADR*		391,874
	37,641	AutoChina International Ltd.*		979,419
	54,901	Changyou.com Ltd. ADR*		1,800,753
	140,777	China Cord Blood Corp.*		830,584
	123,625	China Digital TV Holding Co. Ltd. ADR*		829,524
	73,901	China Distance Education Holdings Ltd. ADR*		378,373
	50,768	China GrenTech Corp. Ltd. ADR*		122,351
	108,779	China Hydroelectric Corp. ADR*		1,030,137
	50,858	China Mass Media Corp. ADR*		137,317
	68,696	China Medical Technologies, Inc. ADR		953,500
	221,812	China Nepstar Chain Drugstore Ltd. ADR		1,461,741
	298,647	China Real Estate Information Corp. ADR*		2,466,824
	92,308	China Techfaith Wireless Communication Technology Ltd. ADR*		219,693
	97,173	CNinsure, Inc. ADR		2,695,579
	104,649	Concord Medical Services Holdings Ltd. ADR*		759,752
	169,894	E-House China Holdings Ltd. ADR		2,855,918
	119,155	Longtop Financial Technologies Ltd. ADR*		4,100,124
	80,295	New Oriental Education & Technology Group ADR*		7,513,203
	80,420	Noah Education Holdings Ltd. ADR*		344,198
	21,217	Perfect World Co. Ltd. ADR*		710,133
	954,626	Semiconductor Manufacturing International Corp. ADR*		5,078,610
	306,740	Shanda Games Ltd. ADR*		2,147,180
	94,240	Spreadtrum Communications, Inc. ADR*		631,408
	165,755	Trina Solar Ltd. ADR*		4,288,082
	84,954	Vanceinfo Technologies, Inc. ADR*		2,026,153
	146,019	WuXi PharmaTech Cayman, Inc. ADR*		2,803,565
				49,225,794

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
		China—62.4%
	60,038	51job, Inc. ADR*	$	1,210,366
	63,083	Acorn International, Inc. ADR		284,504
	95,636	AgFeed Industries, Inc.*		411,235
	267,932	Agria Corp. ADR*		490,316
	139,645	Airmedia Group, Inc. ADR*		895,124
	796,263	Aluminum Corp. of China Ltd. ADR*		19,317,340
	166,811	American Oriental Bioengineering, Inc.*		675,585
	47,709	ATA, Inc. ADR*		168,890
	33,647	Baidu, Inc. ADR*		23,192,877
	89,328	BMP Sunstone Corp.*		479,691
	91,097	Canadian Solar, Inc.*		1,577,800
	240,368	China Eastern Airlines Corp. Ltd. ADR*		13,311,580
	46,845	China Finance Online Co. Ltd. ADR*		351,338
	299,246	China Life Insurance Co. Ltd. ADR		20,226,037
	243,685	China Petroleum and Chemical Corp. ADR		19,558,158
	145,880	China Security & Surveillance Technology, Inc.*		867,986
	341,188	China Southern Airlines Co. Ltd. ADR*		8,672,999
	94,880	China Sunergy Co. Ltd. ADR*		455,424
	412,286	China Telecom Corp. Ltd. ADR		18,923,927
	34,717	ChinaEdu Corp. ADR*		264,196
	312,964	Ctrip.com International Ltd. ADR*		11,429,445
	25,054	eLong, Inc. ADR*		280,855
	278,887	Focus Media Holding Ltd. ADR*		4,679,724
	109,938	General Steel Holdings, Inc.*		410,069
	482,278	Giant Interactive Group, Inc. ADR		3,646,022
	303,007	Guangshen Railway Co. Ltd. ADR		5,872,276
	179,936	Gushan Environmental Energy Ltd. ADR*		183,535
	84,504	Home Inns & Hotels Management, Inc. ADR*		2,944,964
	643,483	Huaneng Power International, Inc. ADR		14,800,109
	46,775	Hurray! Holding Co. Ltd. ADR*		161,842
	358,709	JA Solar Holdings Co. Ltd. ADR*		2,191,712
	34,953	Jinpan International Ltd.		610,978
	72,584	KongZhong Corp. ADR*		525,508
	279,921	LDK Solar Co. Ltd. ADR*		2,177,785
	89,588	Linktone Ltd. ADR*		148,716
	243,196	Mindray Medical International Ltd. ADR		9,290,087
	275,872	NetEase.com, Inc. ADR*		9,619,657
	74,723	Ninetowns Internet Technology Group Co. Ltd. ADR*		116,568
	233,664	PetroChina Co. Ltd. ADR		26,901,736
	101,400	Qiao Xing Mobile Communication Co. Ltd.*		269,724
	155,793	Qiao Xing Universal Telephone, Inc.*		264,848
	142,315	Shanda Interactive Entertainment Ltd. ADR*		6,452,562
	124,027	Simcere Pharmaceutical Group ADR*		987,255
	128,864	SINA Corp.*		4,729,309
	153,484	Sinopec Shanghai Petrochemical Co. Ltd. ADR*		5,855,415
	115,203	Sinovac Biotech Ltd.*		667,025
	133,820	Solarfun Power Holdings Co. Ltd. ADR*		1,156,205

See Notes to Financial Statements.

Schedule of Investments (Continued)

PowerShares Golden Dragon Halter USX China Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	374,945	Suntech Power Holdings Co. Ltd. ADR*	$	5,099,252
	53,464	The9 Ltd. ADR*		344,843
	72,068	Tongjitang Chinese Medicines Co. ADR*		314,217
	78,652	Vimicro International Corp. ADR*		357,080
	152,963	VisionChina Media, Inc. ADR*		656,211
	219,147	WSP Holdings Ltd. ADR		591,697
	160,710	Xinhua Sports & Entertainment Ltd. ADR*		107,676
	161,184	Xinyuan Real Estate Co. Ltd. ADR*		583,486
	877,327	Yanzhou Coal Mining Co. Ltd. ADR		24,433,557
	316,319	Yingli Green Energy Holding Co. Ltd. ADR*		3,995,109
	39,461	Yucheng Technologies Ltd.*		150,741
				284,343,173
		Hong Kong—15.9%
	225,965	CDC Corp., Class A*		601,067
	546,998	China Mobile Ltd. ADR		26,748,202
	41,781	China Natural Resources, Inc.*		481,317
	1,802,937	China Unicom Ltd. ADR		22,410,507
	123,170	CNOOC Ltd. ADR		21,668,066
	95,424	Nam Tai Electronics, Inc.*		479,029
				72,388,188
		United States—9.0%
	142,928	Advanced Battery Technologies, Inc.*		495,960
	46,232	American Dairy, Inc.*		878,408
	64,407	American Lorain Corp.*		204,814
	96,616	A-Power Energy Generation Systems Ltd.*		1,013,502
	100,721	AsiaInfo Holdings, Inc.*		2,861,484
	32,214	China Advanced Construction Materials Group, Inc.*		136,910
	35,944	China Agritech, Inc.*		594,154
	113,428	China Architectural Engineering, Inc.*		134,979
	38,538	China Auto Logistics, Inc.*		155,694
	57,604	China Automotive Systems, Inc.*		1,281,113
	136,412	China BAK Battery, Inc.*		274,188
	50,052	China Biologic Products, Inc.*		621,145
	58,773	China Fire & Security Group, Inc.*		804,015
	51,197	China GengSheng Minerals, Inc.*		131,576
	52,058	China Green Agriculture, Inc.*		660,095
	70,423	China Housing & Land Development, Inc.*		243,664
	110,337	China Information Security Technology, Inc.*		666,436
	170,386	China Infrastructure Investment Corp.*		281,137
	69,260	China Integrated Energy, Inc.*		815,190
	60,474	China Marine Food Group Ltd.*		372,520
	70,071	China MediaExpress Holdings, Inc.*		913,726
	45,103	China Natural Gas, Inc.*		409,986
	55,061	China North East Petroleum Holdings Ltd.*		486,189
	76,941	China Nutrifruit Group Ltd.*		276,218
	92,207	China Pharma Holdings, Inc.*		318,114
	99,170	China Precision Steel, Inc.*		204,290
	41,021	China Ritar Power Corp.*		176,390
	35,747	China Sky One Medical, Inc.*		506,535
	47,821	China TransInfo Technology Corp.*		334,747

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	66,863	China Valves Technology, Inc.*	$	732,150
	36,897	China Wind Systems, Inc.*		174,154
	86,918	China XD Plastics Co. Ltd.*		593,650
	47,643	China-Biotics, Inc.*		848,998
	96,203	ChinaCast Education Corp.*		647,446
	33,584	ChinaNet Online Holdings, Inc.*		143,068
	29,206	Chindex International, Inc.*		369,164
	76,924	Cogo Group, Inc.*		541,545
	69,500	Deer Consumer Products, Inc.*		716,545
	65,093	Duoyuan Printing, Inc.*		563,705
	58,844	Fuqi International, Inc.*		618,450
	79,333	Fushi Copperweld, Inc.*		877,423
	73,593	Gulf Resources, Inc.*		791,125
	66,167	Harbin Electric, Inc.*		1,449,719
	28,876	Hong Kong Highpower Technology, Inc.*		133,118
	31,260	HQ Sustainable Maritime Industries, Inc.*		177,869
	42,499	Kandi Technolgies Corp.*		211,220
	51,368	Lihua International, Inc.*		451,011
	86,631	NIVS IntelliMedia Technology Group, Inc.*		278,086
	31,040	Orient Paper, Inc.*		322,195
	39,801	Puda Coal, Inc.*		401,592
	53,994	RINO International Corp.*		929,777
	115,440	Shengda Tech, Inc.*		795,382
	53,459	Sinohub, Inc.*		152,893
	14,823	Skystar Bio-Pharmaceutical Co. Ltd.*		143,635
	80,436	Sohu.com, Inc.*		3,872,993
	38,920	SORL Auto Parts, Inc.*		412,163
	80,839	Sutor Technology Group Ltd.*		222,307
	115,012	Synutra International, Inc.*		2,695,881
	22,156	Telestone Technologies Corp.*		302,651
	56,726	Tianyin Pharmaceutical Co., Inc.		199,108
	151,928	Tiens Biotech Group USA, Inc.*		344,877
	35,588	Universal Travel Group*		324,918
	279,310	UTStarcom, Inc.*		796,034
	47,614	Winner Medical Group, Inc.*		297,111
	72,116	Wonder Auto Technology, Inc.*		834,382
	53,995	Wuhan General Group China, Inc.*		91,792
	33,469	Yuhe International, Inc.*		297,205
	73,959	Zhongpin, Inc.*		937,800
	24,802	ZST Digital Networks, Inc.*		160,469
				41,106,790
		Total Investments (Cost $451,825,467)—100.0%		455,454,548
		Other assets less liabilities—0.0%		68,739
		Net Assets—100.0%	$	455,523,287

Investment Abbreviations:

ADR—American Depositary Receipt

Notes to Schedule of Investments:

* Non-income producing security.

See Notes to Financial Statements.

Schedule of Investments

PowerShares Lux Nanotech Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.2%
		Auto Manufacturers—3.0%
	21,252	Toyota Motor Corp. ADR (Japan)	$	1,638,317
		Biotechnology—10.7%
	51,126	Abraxis Bioscience, Inc.*		2,554,766
	532,952	Nanosphere, Inc.*		3,357,598
				5,912,364
		Chemicals—16.1%
	23,090	Air Products & Chemicals, Inc.		1,772,850
	45,533	E.I. du Pont de Nemours & Co.		1,814,035
	342,766	Shengda Tech, Inc.*		2,361,658
	546,532	Symyx Technologies, Inc.*		2,978,599
				8,927,142
		Commercial Services—3.6%
	3,432,222	Altair Nanotechnologies, Inc.*		2,004,418
		Computers—6.1%
	32,125	Hewlett-Packard Co.		1,669,536
	13,276	International Business Machines Corp.		1,712,604
				3,382,140
		Electrical Components & Equipment—8.1%
	173,579	A123 Systems, Inc.*		2,162,794
	550,036	Ener1, Inc.*		2,288,150
				4,450,944
		Electronics—9.4%
	112,458	FEI Co.*		2,530,305
	55,502	NVE Corp.*		2,676,861
				5,207,166
		Energy-Alternate Sources—5.8%
	531,852	Headwaters, Inc.*		3,191,112
		Investment Companies—4.9%
	558,216	Harris & Harris Group, Inc.*		2,707,347
		Miscellaneous Manufacturing—6.6%
	21,186	3M Co.		1,878,563
	93,572	General Electric Co.		1,764,768
				3,643,331
		Pharmaceuticals—12.9%
	638,750	BioDelivery Sciences International, Inc.*		2,216,462
	353,110	Elan Corp. PLC ADR (Ireland)*		2,372,899
	294,864	Flamel Technologies SA ADR (France)*		2,541,728
				7,131,089
		Semiconductors—7.9%
	77,163	Intel Corp.		1,761,631
	59,754	Veeco Instruments, Inc.*		2,628,579
				4,390,210

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
		Software—5.1%
	400,336	Accelrys, Inc.*	$	2,798,349
		Total Common Stocks and Other Equity Interests (Cost $58,388,759)		55,383,929
		Money Market Fund—0.0%
	11,900	Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $11,900)		11,900
		Total Investments (Cost $58,400,659)—100.2%		55,395,829
		Liabilities in excess of other assets—(0.2%)		(105,758	)
		Net Assets—100.0%	$	55,290,071

Investment Abbreviations:

ADR—American Depositary Receipt

Notes to Schedule of Investments:

* Non-income producing security.

See Notes to Financial Statements.

Schedule of Investments

PowerShares NASDAQ-100 BuyWrite Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks and Other Equity Interests(<)—101.2%
		Auto Manufacturers—1.0%
	2,484	PACCAR, Inc.	$	115,556
		Biotechnology—8.1%
	2,871	Amgen, Inc.*		164,681
	1,784	Biogen Idec, Inc.*		94,998
	2,774	Celgene Corp.*(>)		171,849
	2,025	Genzyme Corp.*		107,811
	5,394	Gilead Sciences, Inc.*		213,980
	719	Illumina, Inc.*		30,104
	1,115	Life Technologies Corp.*		61,002
	1,278	Vertex Pharmaceuticals, Inc.*		49,548
				893,973
		Chemicals—0.4%
	712	Sigma-Aldrich Corp.		42,221
		Commercial Services—1.9%
	954	Apollo Group, Inc., Class A*		54,769
	2,171	Automatic Data Processing, Inc.		94,135
	2,089	Paychex, Inc.		63,923
				212,827
		Computers—24.0%
	7,698	Apple, Inc.*		2,010,102
	1,765	Cognizant Technology Solutions Corp., Class A*		90,333
	4,381	Dell, Inc.*		70,885
	671	Infosys Technologies Ltd. ADR (India)		40,180
	1,046	Logitech International SA (Switzerland)*		17,133
	2,157	NetApp, Inc.*		74,783
	3,391	Research In Motion Ltd. (Canada)*(>)		241,405
	1,416	SanDisk Corp.*		56,484
	3,033	Seagate Technology (Cayman Islands)*		55,716
				2,657,021
		Distribution/Wholesale—0.4%
	859	Fastenal Co.		46,979
		Electronics—1.0%
	5,374	Flextronics International Ltd. (Singapore)*		41,649
	975	FLIR Systems, Inc.*		29,825
	1,132	Garmin Ltd.		42,314
				113,788
		Energy - Alternate Sources—0.6%
	454	First Solar, Inc.*		65,172
		Engineering & Construction—0.2%
	811	Foster Wheeler AG (Switzerland)*		24,314
		Environmental Control—0.3%
	542	Stericycle, Inc.*		31,924

Number of Shares			Value
		Common Stocks and Other Equity Interests(<) (Continued)
		Healthcare - Products—2.1%
	861	DENTSPLY International, Inc.	$	31,547
	550	Henry Schein, Inc.*		33,258
	1,656	Hologic, Inc.*		29,593
	237	Intuitive Surgical, Inc.*		85,453
	715	Patterson Cos., Inc.		22,873
	1,431	QIAGEN NV (Netherlands)*		32,698
				235,422
		Internet—12.0%
	1,796	Amazon.com, Inc.*		246,160
	164	Baidu, Inc. ADR (China)*		113,045
	5,896	eBay, Inc.*		140,384
	1,737	Expedia, Inc.		41,010
	903	Google, Inc., Class A*		474,472
	3,335	Liberty Media Corp.—Interactive, Class A*		51,259
	293	Priceline.com, Inc.*		76,781
	5,131	Symantec Corp.*		86,047
	1,054	VeriSign, Inc.*		28,742
	4,096	Yahoo!, Inc.*		67,707
				1,325,607
		Lodging—0.7%
	818	Wynn Resorts Ltd.		72,180
		Machinery - Construction & Mining—0.3%
	616	Joy Global, Inc.		34,995
		Media—4.4%
	8,792	Comcast Corp., Class A		173,554
	4,048	DIRECTV, Class A*		146,659
	1,311	DISH Network Corp., Class A		29,039
	8,667	News Corp., Class A		133,645
				482,897
		Pharmaceuticals—4.8%
	445	Cephalon, Inc.*		28,569
	1,495	Express Scripts, Inc.*		149,694
	1,899	Mylan, Inc.*		41,835
	4,480	Teva Pharmaceutical Industries Ltd. ADR (Israel)		263,110
	1,527	Warner Chilcott PLC, Class A (Ireland)*		43,306
				526,514
		Retail—5.6%
	2,144	Bed Bath & Beyond, Inc.*		98,538
	1,408	Costco Wholesale Corp.		83,185
	836	O'Reilly Automotive, Inc.*		40,872
	763	Ross Stores, Inc.		42,728
	731	Sears Holdings Corp.*		88,415
	2,959	Staples, Inc.		69,625
	6,291	Starbucks Corp.		163,440
	1,016	Urban Outfitters, Inc.*		38,110
				624,913

See Notes to Financial Statements.

Schedule of Investments (Continued)

PowerShares NASDAQ-100 BuyWrite Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks and Other Equity Interests(<) (Continued)
		Semiconductors—7.7%
	2,549	Altera Corp.	$	64,643
	4,233	Applied Materials, Inc.		58,331
	2,435	Broadcom Corp., Class A		83,983
	11,773	Intel Corp.		268,778
	1,270	KLA - Tencor Corp.		43,256
	804	Lam Research Corp.*		32,602
	1,821	Linear Technology Corp.		54,739
	3,629	Marvell Technology Group Ltd. (Bermuda)*		74,939
	1,828	Maxim Integrated Products, Inc.		35,500
	933	Microchip Technology, Inc.		27,253
	3,316	NVIDIA Corp.*		52,127
	2,237	Xilinx, Inc.		57,670
				853,821
		Software—14.2%
	6,893	Activision Blizzard, Inc.		76,374
	3,126	Adobe Systems, Inc.*		105,002
	1,458	Autodesk, Inc.*		49,587
	1,294	BMC Software, Inc.*		50,932
	3,044	CA, Inc.		69,434
	497	Cerner Corp.*		42,200
	1,257	Check Point Software Technologies Ltd. (Israel)*		44,774
	1,330	Citrix Systems, Inc.*		62,510
	2,007	Electronic Arts, Inc.*		38,876
	1,161	Fiserv, Inc.*		59,316
	2,429	Intuit, Inc.*		87,833
	18,371	Microsoft Corp.		561,050
	12,717	Oracle Corp.		328,607
				1,576,495
		Telecommunications—9.4%
	12,450	Cisco Systems, Inc.*		335,154
	640	Millicom International Cellular SA (Luxembourg)		56,499
	988	NII Holdings, Inc.*		41,911
	12,336	QUALCOMM, Inc.		477,897
	2,053	Virgin Media, Inc.		36,112
	3,968	Vodafone Group PLC ADR (United Kingdom)		88,090
				1,035,663
		Textiles—0.3%
	1,118	Cintas Corp.		30,465
		Toys/Games/Hobbies—0.5%
	2,535	Mattel, Inc.		58,432
		Transportation—1.3%
	1,004	C.H. Robinson Worldwide, Inc.		60,541
	1,269	Expeditors International of Washington, Inc.		51,699
	775	J.B. Hunt Transport Services, Inc.		28,567
				140,807

Number of Shares			Value
		Common Stocks and Other Equity Interests(<) (Continued)
		Total Common Stocks and Other Equity Interests (Cost $7,978,027)		$11,201,986
		Money Market Fund—0.0%
	3,747	Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $3,747)		3,747
		Total Investments (Cost $7,981,774)—101.2%		11,205,733
		Liabilities in excess of other assets—(1.2%)		(135,530	)
		Net Assets—100.0%	$	11,070,203

Investment Abbreviations:

ADR—American Depositary Receipt

Notes to Schedule of Investments:

* Non-income producing security.

(<) Except as otherwise noted, a portion of all securities in the portfolio are subject to call options when written. See Note 2H.

(>) Security not subject to call options written.

See Notes to Financial Statements.

Schedule of Investments

PowerShares S&P 500 BuyWrite Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks and Other Equity Interests(<)—101.1%
		Consumer Discretionary—10.7%
	1,392	Abercrombie & Fitch Co., Class A	$	60,872
	5,417	Amazon.com, Inc.*		742,454
	2,035	Apollo Group, Inc., Class A*		116,829
	1,430	AutoNation, Inc.*		28,886
	469	AutoZone, Inc.*		86,770
	4,148	Bed Bath & Beyond, Inc.*		190,642
	5,427	Best Buy Co., Inc.		247,471
	1,308	Big Lots, Inc.*		49,966
	6,872	Carnival Corp.		286,562
	10,718	CBS Corp., Class B		173,739
	4,974	Coach, Inc.		207,665
	44,905	Comcast Corp., Class A		886,425
	4,379	D.R. Horton, Inc.		64,328
	2,214	Darden Restaurants, Inc.		99,076
	979	DeVry, Inc.		61,080
	14,805	DIRECTV, Class A*		536,385
	4,489	Discovery Communications, Inc., Class A*		173,724
	4,253	Eastman Kodak Co.*		26,028
	3,348	Expedia, Inc.		79,046
	2,190	Family Dollar Stores, Inc.		86,636
	53,304	Ford Motor Co.*		694,018
	2,406	Fortune Brands, Inc.		126,123
	2,416	GameStop Corp., Class A*(>)		58,733
	3,757	Gannett Co., Inc.		63,944
	7,538	Gap, Inc. (The)		186,415
	2,512	Genuine Parts Co.		107,514
	3,834	Goodyear Tire & Rubber Co. (The)*		51,491
	5,311	H&R Block, Inc.		97,244
	3,709	Harley-Davidson, Inc.		125,475
	1,099	Harman International Industries, Inc.*		43,389
	1,943	Hasbro, Inc.		74,533
	26,880	Home Depot, Inc. (The)		947,520
	4,695	International Game Technology		98,971
	7,692	Interpublic Group of Cos., Inc. (The)*		68,536
	3,736	J.C. Penney Co., Inc.		108,979
	10,635	Johnson Controls, Inc.		357,230
	4,854	Kohl's Corp.*		266,921
	2,349	Leggett & Platt, Inc.		57,621
	2,575	Lennar Corp., Class A		51,243
	4,235	Limited Brands, Inc.		113,498
	23,295	Lowe's Cos., Inc.		631,760
	6,665	Macy's, Inc.		154,628
	4,029	Marriott International, Inc., Class A		148,106
	5,757	Mattel, Inc.		132,699
	17,009	McDonald's Corp.(>)		1,200,665
	4,998	McGraw-Hill Cos., Inc. (The)		168,533
	582	Meredith Corp.		20,911
	1,842	New York Times Co. (The), Class A*		18,273
	4,398	Newell Rubbermaid, Inc.		75,074
	35,660	News Corp., Class A		549,877

Number of Shares			Value
		Common Stocks and Other Equity Interests(<) (Continued)
	6,174	NIKE, Inc., Class B	$	468,668
	2,616	Nordstrom, Inc.		108,119
	4,349	Office Depot, Inc.*		29,834
	4,915	Omnicom Group, Inc.		209,674
	2,178	O'Reilly Automotive, Inc.*		106,482
	906	Polo Ralph Lauren Corp.		81,449
	721	Priceline.com, Inc.*		188,938
	5,023	Pulte Group, Inc.*		65,751
	1,983	RadioShack Corp.		42,734
	1,961	Ross Stores, Inc.		109,816
	1,418	Scripps Networks Interactive, Inc., Class A		64,292
	768	Sears Holdings Corp.*		92,890
	1,456	Sherwin-Williams Co. (The)		113,670
	2,492	Stanley Black & Decker, Inc.		154,878
	11,541	Staples, Inc.		271,560
	11,770	Starbucks Corp.		305,785
	2,957	Starwood Hotels & Resorts Worldwide, Inc.		161,186
	11,906	Target Corp.		677,094
	1,969	Tiffany & Co.		95,457
	5,581	Time Warner Cable, Inc.		313,931
	18,203	Time Warner, Inc.		602,155
	6,645	TJX Cos., Inc. (The)		307,929
	2,054	Urban Outfitters, Inc.*		77,046
	1,400	VF Corp.		120,988
	9,615	Viacom, Inc., Class B*		339,698
	30,660	Walt Disney Co. (The)(>)		1,129,514
	97	Washington Post Co. (The), Class B		49,195
	1,184	Whirlpool Corp.		128,902
	2,831	Wyndham Worldwide Corp.		75,899
	1,093	Wynn Resorts Ltd.		96,446
	7,430	Yum! Brands, Inc.		315,181
				17,909,669
		Consumer Staples—11.0%
	32,925	Altria Group, Inc.		697,681
	10,173	Archer-Daniels-Midland Co.		284,234
	6,767	Avon Products, Inc.		218,777
	1,720	Brown-Forman Corp., Class B		100,070
	2,986	Campbell Soup Co.		107,078
	2,220	Clorox Co. (The)		143,634
	36,439	Coca-Cola Co. (The)(>)		1,947,664
	5,059	Coca-Cola Enterprises, Inc.		140,286
	7,814	Colgate-Palmolive Co.		657,157
	7,020	ConAgra Foods, Inc.		171,779
	3,162	Constellation Brands, Inc., Class A*		57,770
	6,955	Costco Wholesale Corp.		410,901
	22,005	CVS Caremark Corp.		812,645
	2,870	Dean Foods Co.*		45,059
	4,023	Dr Pepper Snapple Group, Inc.		131,673
	1,870	Estee Lauder Cos., Inc. (The), Class A		123,270
	5,216	General Mills, Inc.		371,275

See Notes to Financial Statements.

Schedule of Investments (Continued)

PowerShares S&P 500 BuyWrite Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks and Other Equity Interests(<) (Continued)
	5,006	H.J. Heinz Co.	$	234,631
	2,634	Hershey Co. (The)		123,824
	1,100	Hormel Foods Corp.		44,836
	1,884	J.M. Smucker Co. (The)		115,056
	4,036	Kellogg Co.		221,738
	6,591	Kimberly-Clark Corp.		403,765
	27,482	Kraft Foods, Inc., Class A		813,467
	10,289	Kroger Co. (The)		228,724
	2,451	Lorillard, Inc.		192,085
	2,092	McCormick & Co., Inc.		82,780
	3,237	Mead Johnson Nutrition Co., Class A		167,062
	2,508	Molson Coors Brewing Co., Class B		111,255
	25,834	PepsiCo, Inc.(>)		1,684,893
	29,734	Philip Morris International, Inc.(>)		1,459,345
	45,916	Procter & Gamble Co. (The)		2,854,139
	2,675	Reynolds American, Inc.		142,898
	6,155	Safeway, Inc.		145,258
	11,040	Sara Lee Corp.		156,989
	3,356	SUPERVALU, Inc.		50,004
	9,381	Sysco Corp.		295,877
	4,829	Tyson Foods, Inc., Class A		94,600
	15,597	Walgreen Co.		548,235
	33,729	Wal-Mart Stores, Inc.(>)		1,809,561
	2,697	Whole Foods Market, Inc.*		105,237
				18,507,212
		Energy—11.3%
	7,798	Anadarko Petroleum Corp.		484,724
	5,328	Apache Corp.		542,177
	6,798	Baker Hughes, Inc.(>)		338,269
	1,640	Cabot Oil & Gas Corp.		59,253
	3,870	Cameron International Corp.*		152,710
	10,320	Chesapeake Energy Corp.		245,616
	31,748	Chevron Corp.(>)		2,585,557
	23,504	ConocoPhillips(>)		1,391,202
	3,477	CONSOL Energy, Inc.		155,352
	6,261	Denbury Resources, Inc.*		119,898
	7,074	Devon Energy Corp.		476,292
	1,100	Diamond Offshore Drilling, Inc.		87,010
	11,104	El Paso Corp.		134,358
	3,999	EOG Resources, Inc.		448,368
	74,633	Exxon Mobil Corp.(>)		5,063,849
	1,931	FMC Technologies, Inc.*		130,709
	14,329	Halliburton Co.		439,184
	1,673	Helmerich & Payne, Inc.		67,957
	4,611	Hess Corp.		293,029
	11,208	Marathon Oil Corp.		360,337
	1,606	Massey Energy Co.		58,828
	3,026	Murphy Oil Corp.		182,014
	4,506	Nabors Industries Ltd. (Bermuda)*		97,194
	6,624	National Oilwell Varco, Inc.		291,655

Number of Shares			Value
		Common Stocks and Other Equity Interests(<) (Continued)
	2,761	Noble Energy, Inc.	$	210,940
	12,835	Occidental Petroleum Corp.(>)		1,137,951
	4,255	Peabody Energy Corp.		198,794
	1,829	Pioneer Natural Resources Co.		117,294
	2,519	Range Resources Corp.		120,308
	1,802	Rowan Cos., Inc.*		53,700
	18,916	Schlumberger Ltd.(>)		1,350,981
	3,932	Smith International, Inc.		187,792
	5,479	Southwestern Energy Co.*		217,407
	10,251	Spectra Energy Corp.		239,258
	1,851	Sunoco, Inc.		60,676
	2,226	Tesoro Corp.		29,272
	8,942	Valero Energy Corp.		185,904
	9,239	Williams Cos., Inc. (The)		218,133
	9,235	XTO Energy, Inc.		438,847
				18,972,799
		Financials—16.7%
	7,427	Aflac, Inc.		378,480
	8,495	Allstate Corp. (The)		277,532
	18,938	American Express Co.		873,421
	2,136	American International Group, Inc.*		83,090
	4,045	Ameriprise Financial, Inc.		187,526
	4,224	Aon Corp.		179,351
	1,854	Apartment Investment & Management Co., Class A REIT		41,548
	1,844	Assurant, Inc.		67,177
	1,291	AvalonBay Communities, Inc. REIT		134,316
	158,585	Bank of America Corp.(>)		2,827,570
	19,120	Bank of New York Mellon Corp. (The)		595,206
	10,935	BB&T Corp.		363,479
	26,160	Berkshire Hathaway, Inc., Class B*(>)		2,014,320
	2,199	Boston Properties, Inc. REIT		173,413
	7,208	Capital One Financial Corp.		312,899
	4,280	CB Richard Ellis Group, Inc., Class A*		74,130
	15,478	Charles Schwab Corp. (The)		298,571
	5,202	Chubb Corp. (The)		275,030
	2,579	Cincinnati Financial Corp.		73,244
	310,610	Citigroup, Inc.*(>)		1,357,366
	1,055	CME Group, Inc.		346,472
	2,755	Comerica, Inc.		115,710
	8,607	Discover Financial Services		133,064
	30,319	ETRADE Financial Corp.		50,936
	4,462	Equity Residential REIT		201,995
	1,401	Federated Investors, Inc., Class B		33,792
	12,587	Fifth Third Bancorp		187,672
	3,565	First Horizon National Corp.*		50,445
	2,348	Franklin Resources, Inc.		271,523
	7,743	Genworth Financial, Inc., Class A*		127,914
	8,319	Goldman Sachs Group, Inc. (The)(>)		1,207,919
	7,025	Hartford Financial Services Group, Inc. (The)		200,704

See Notes to Financial Statements.

Schedule of Investments (Continued)

PowerShares S&P 500 BuyWrite Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks and Other Equity Interests(<) (Continued)
	4,651	HCP, Inc. REIT	$	149,390
	1,958	Health Care, Inc. REIT		87,973
	10,341	Host Hotels & Resorts, Inc. REIT		168,145
	7,502	Hudson City Bancorp, Inc.		99,777
	11,343	Huntington Bancshares, Inc.		76,792
	1,165	IntercontinentalExchange, Inc.*		135,874
	6,788	Invesco Ltd.(~)		156,056
	2,907	Janus Capital Group, Inc.*		40,930
	62,805	JPMorgan Chase & Co.(>)		2,674,237
	13,903	KeyCorp		125,405
	6,420	Kimco Realty Corp. REIT		100,088
	2,573	Legg Mason, Inc.		81,538
	3,004	Leucadia National Corp.*		76,031
	4,785	Lincoln National Corp.		146,373
	5,618	Loews Corp.		209,214
	1,314	M&T Bank Corp.		114,778
	8,426	Marsh & McLennan Cos., Inc.		204,078
	8,338	Marshall & Ilsley Corp.		75,876
	12,968	MetLife, Inc.		591,081
	3,113	Moody's Corp.		76,953
	22,125	Morgan Stanley		668,617
	2,342	NASDAQ OMX Group, Inc. (The)*		49,182
	3,826	Northern Trust Corp.		210,353
	4,131	NYSE Euronext		134,794
	5,879	People's United Financial, Inc.		91,301
	2,577	Plum Creek Timber Co., Inc. REIT		102,565
	8,181	PNC Financial Services Group, Inc.		549,845
	5,057	Principal Financial Group, Inc.		147,765
	10,632	Progressive Corp. (The)		213,597
	7,507	ProLogis REIT		98,867
	7,362	Prudential Financial, Inc.		467,929
	2,147	Public Storage REIT		208,066
	18,882	Regions Financial Corp.		166,917
	4,591	Simon Property Group, Inc. REIT		408,691
	7,682	SLM Corp.*		94,028
	7,842	State Street Corp.		341,127
	7,906	SunTrust Banks, Inc.		234,018
	4,100	T. Rowe Price Group, Inc.		235,791
	1,311	Torchmark Corp.		70,191
	8,130	Travelers Cos., Inc. (The)		412,516
	30,279	U.S. Bancorp		810,569
	5,261	Unum Group		128,737
	2,480	Ventas, Inc. REIT		117,130
	2,496	Vornado Realty Trust REIT		208,091
	81,896	Wells Fargo & Co.(>)		2,711,577
	5,416	XL Capital Ltd., Class A		96,405
	2,381	Zions Bancorp		68,406
				27,953,479
		Health Care—11.7%
	24,544	Abbott Laboratories(>)		1,255,671
	6,824	Aetna, Inc.		201,649

Number of Shares			Value
		Common Stocks and Other Equity Interests(<) (Continued)
	4,868	Allergan, Inc.	$	310,043
	4,471	AmerisourceBergen Corp.		137,930
	15,498	Amgen, Inc.*		888,965
	9,541	Baxter International, Inc.		450,526
	3,731	Becton, Dickinson and Co.		284,937
	4,268	Biogen Idec, Inc.*		227,271
	23,928	Boston Scientific Corp.*		164,625
	27,127	Bristol-Myers Squibb Co.		686,042
	1,514	C.R. Bard, Inc.		131,006
	5,722	Cardinal Health, Inc.		198,496
	2,807	CareFusion Corp.*		77,417
	7,278	Celgene Corp.*		450,872
	1,186	Cephalon, Inc.*		76,141
	1,074	Cerner Corp.*		91,193
	4,353	CIGNA Corp.		139,557
	2,344	Coventry Health Care, Inc.*		55,647
	1,633	DaVita, Inc.*		101,948
	2,330	DENTSPLY International, Inc.		85,371
	16,059	Eli Lilly & Co.		561,583
	4,358	Express Scripts, Inc.*		436,367
	4,786	Forest Laboratories, Inc.*		130,466
	4,212	Genzyme Corp.*		224,247
	14,296	Gilead Sciences, Inc.*		567,122
	2,594	Hospira, Inc.*		139,531
	2,695	Humana, Inc.*		123,215
	616	Intuitive Surgical, Inc.*		222,105
	43,502	Johnson & Johnson(>)		2,797,179
	3,933	King Pharmaceuticals, Inc.*		38,543
	1,657	Laboratory Corp. of America Holdings*		130,191
	2,862	Life Technologies Corp.*		156,580
	4,264	McKesson Corp.		276,350
	7,347	Medco Health Solutions, Inc.*		432,885
	17,481	Medtronic, Inc.		763,745
	49,247	Merck & Co., Inc.(>)		1,725,615
	886	Millipore Corp.*		94,049
	4,855	Mylan, Inc.*		106,956
	1,477	Patterson Cos., Inc.		47,249
	1,861	PerkinElmer, Inc.		46,618
	127,576	Pfizer, Inc.(>)		2,133,071
	2,379	Quest Diagnostics, Inc.		135,984
	5,152	St. Jude Medical, Inc.*		210,305
	4,474	Stryker Corp.		256,987
	6,855	Tenet Healthcare Corp.*		42,844
	6,482	Thermo Fisher Scientific, Inc.*		358,325
	18,326	UnitedHealth Group, Inc.		555,461
	1,961	Varian Medical Systems, Inc.*		110,561
	1,481	Waters Corp.*		106,617
	1,686	Watson Pharmaceuticals, Inc.*		72,195
	7,028	WellPoint, Inc.*		378,106
	3,371	Zimmer Holdings, Inc.*		205,328
				19,601,687

See Notes to Financial Statements.

Schedule of Investments (Continued)

PowerShares S&P 500 BuyWrite Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks and Other Equity Interests(<) (Continued)
		Industrials—10.9%
	11,251	3M Co.(>)	$	997,626
	1,773	Avery Dennison Corp.		69,200
	11,979	Boeing Co. (The)		867,639
	2,637	C.H. Robinson Worldwide, Inc.		159,011
	9,886	Caterpillar, Inc.		673,138
	2,081	Cintas Corp.		56,707
	6,175	CSX Corp.		346,109
	3,187	Cummins, Inc.		230,197
	4,148	Danaher Corp.		349,593
	6,712	Deere & Co.		401,512
	2,949	Dover Corp.		153,997
	807	Dun & Bradstreet Corp. (The)		62,115
	2,618	Eaton Corp.		202,005
	11,908	Emerson Electric Co.		621,955
	2,000	Equifax, Inc.		67,200
	3,358	Expeditors International of Washington, Inc.		136,805
	2,077	Fastenal Co.		113,591
	4,954	FedEx Corp.		445,910
	769	First Solar, Inc.*		110,390
	883	Flowserve Corp.		101,174
	2,831	Fluor Corp.		149,590
	6,106	General Dynamics Corp.		466,254
	168,667	General Electric Co.(>)		3,181,060
	1,982	Goodrich Corp.		147,025
	12,104	Honeywell International, Inc.		574,577
	6,125	Illinois Tool Works, Inc.		312,988
	2,869	Iron Mountain, Inc.		72,155
	2,895	ITT Corp.		160,875
	1,971	Jacobs Engineering Group, Inc.*		95,042
	1,829	L-3 Communications Holdings, Inc.		171,140
	4,993	Lockheed Martin Corp.		423,856
	5,680	Masco Corp.		92,186
	5,852	Norfolk Southern Corp.		347,199
	4,793	Northrop Grumman Corp.		325,109
	5,766	PACCAR, Inc.		268,234
	1,858	Pall Corp.		72,443
	2,546	Parker Hannifin Corp.		176,132
	3,284	Pitney Bowes, Inc.		83,414
	2,242	Precision Castparts Corp.		287,738
	3,325	Quanta Services, Inc.*		66,932
	3,253	R.R. Donnelley & Sons Co.		69,907
	6,001	Raytheon Co.		349,858
	5,127	Republic Services, Inc.		159,091
	2,353	Robert Half International, Inc.		64,425
	2,260	Rockwell Automation, Inc.		137,227
	2,488	Rockwell Collins, Inc.		161,720
	1,483	Roper Industries, Inc.		90,493
	845	Ryder System, Inc.		39,309
	914	Snap-On, Inc.		44,037
	11,768	Southwest Airlines Co.		155,102

Number of Shares			Value
		Common Stocks and Other Equity Interests(<) (Continued)
	1,342	Stericycle, Inc.*	$	79,044
	4,316	Textron, Inc.		98,578
	7,996	Union Pacific Corp.		604,977
	15,695	United Parcel Service, Inc., Class B(>)		1,085,152
	14,803	United Technologies Corp.(>)		1,109,485
	974	W.W. Grainger, Inc.		107,666
	7,678	Waste Management, Inc.		266,273
				18,262,167
		Information Technology—19.1%
	8,298	Adobe Systems, Inc.*		278,730
	8,939	Advanced Micro Devices, Inc.*		80,987
	5,522	Agilent Technologies, Inc.*		200,228
	2,724	Akamai Technologies, Inc.*		105,773
	4,708	Altera Corp.		119,395
	2,742	Amphenol Corp., Class A		126,708
	4,713	Analog Devices, Inc.		141,060
	14,335	Apple, Inc.*(>)		3,743,155
	21,265	Applied Materials, Inc.		293,032
	3,637	Autodesk, Inc.*		123,694
	7,993	Automatic Data Processing, Inc.		346,576
	2,891	BMC Software, Inc.*		113,790
	6,826	Broadcom Corp., Class A		235,429
	6,257	CA, Inc.		142,722
	90,510	Cisco Systems, Inc.*(>)		2,436,529
	2,910	Citrix Systems, Inc.*		136,770
	4,711	Cognizant Technology Solutions Corp., Class A*		241,109
	2,431	Computer Sciences Corp.*		127,360
	3,600	Compuware Corp.*		30,960
	24,680	Corning, Inc.		475,090
	27,261	Dell, Inc.*		441,083
	17,892	eBay, Inc.*		426,008
	5,172	Electronic Arts, Inc.*		100,182
	32,485	EMC Corp.*		617,540
	5,224	Fidelity National Information Services, Inc.		137,339
	2,411	Fiserv, Inc.*		123,178
	2,420	FLIR Systems, Inc.*		74,028
	3,820	Google, Inc., Class A*(>)		2,007,181
	2,071	Harris Corp.		106,615
	37,213	Hewlett-Packard Co.		1,933,960
	87,323	Intel Corp.(>)		1,993,584
	20,535	International Business Machines Corp.(>)		2,649,015
	4,969	Intuit, Inc.*		179,679
	3,057	Jabil Circuit, Inc.		46,833
	3,538	JDS Uniphase Corp.*		45,959
	8,318	Juniper Networks, Inc.*		236,314
	2,723	KLA-Tencor Corp.		92,745
	1,236	Lexmark International, Inc., Class A*		45,794
	3,538	Linear Technology Corp.		106,352
	10,395	LSI Corp.*		62,578
	1,527	MasterCard, Inc., Class A		378,757

See Notes to Financial Statements.

Schedule of Investments (Continued)

PowerShares S&P 500 BuyWrite Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks and Other Equity Interests(<) (Continued)
	2,512	McAfee, Inc.*	$	87,292
	3,599	MEMC Electronic Materials, Inc.*		46,679
	2,917	Microchip Technology, Inc.		85,205
	13,468	Micron Technology, Inc.*		125,926
	120,619	Microsoft Corp.(>)		3,683,704
	2,146	Molex, Inc.		48,092
	1,988	Monster Worldwide, Inc.*		34,651
	36,618	Motorola, Inc.*		258,889
	3,765	National Semiconductor Corp.		55,647
	5,457	NetApp, Inc.*		189,194
	5,514	Novell, Inc.*		30,933
	1,518	Novellus Systems, Inc.*		39,772
	8,785	NVIDIA Corp.*		138,100
	61,789	Oracle Corp.(>)		1,596,628
	5,092	Paychex, Inc.		155,815
	1,803	QLogic Corp.*		34,924
	26,567	QUALCOMM, Inc.(>)		1,029,205
	2,987	Red Hat, Inc.*		89,222
	4,826	SAIC, Inc.*		84,021
	1,740	Salesforce.com, Inc.*		148,944
	3,621	SanDisk Corp.*		144,442
	12,764	Symantec Corp.*		214,052
	6,085	Tellabs, Inc.		55,252
	2,639	Teradata Corp.*		76,716
	2,805	Teradyne, Inc.*		34,305
	19,662	Texas Instruments, Inc.		511,409
	3,122	Total System Services, Inc.		49,983
	2,904	VeriSign, Inc.*		79,192
	7,064	Visa, Inc., Class A		637,385
	3,619	Western Digital Corp.*		148,705
	10,809	Western Union Co. (The)		197,264
	21,404	Xerox Corp.		233,304
	4,380	Xilinx, Inc.		112,916
	18,843	Yahoo!, Inc.*		311,475
				32,073,064
		Materials—3.5%
	3,358	Air Products & Chemicals, Inc.		257,827
	1,309	Airgas, Inc.		83,056
	1,738	AK Steel Holding Corp.		29,112
	16,153	Alcoa, Inc.		217,096
	1,555	Allegheny Technologies, Inc.		83,146
	1,489	Ball Corp.		79,230
	1,725	Bemis Co., Inc.		52,457
	1,097	CF Industries Holdings, Inc.		91,786
	2,140	Cliffs Natural Resources, Inc.		133,814
	18,212	Dow Chemical Co. (The)		561,476
	14,303	E.I. du Pont de Nemours & Co.		569,832
	1,151	Eastman Chemical Co.		77,025
	3,740	Ecolab, Inc.		182,662
	1,148	FMC Corp.		73,059

Number of Shares			Value
		Common Stocks and Other Equity Interests(<) (Continued)
	6,817	Freeport-McMoRan Copper & Gold, Inc.	$	514,888
	1,251	International Flavors & Fragrances, Inc.		62,663
	6,856	International Paper Co.		183,329
	2,711	MeadWestvaco Corp.		73,658
	8,635	Monsanto Co.		544,523
	7,773	Newmont Mining Corp.		435,910
	4,986	Nucor Corp.		225,966
	2,669	Owens-Illinois, Inc.*		94,589
	2,095	Pactiv Corp.*		53,234
	2,625	PPG Industries, Inc.		184,721
	4,850	Praxair, Inc.		406,284
	2,516	Sealed Air Corp.		54,094
	1,928	Sigma-Aldrich Corp.		114,330
	1,336	Titanium Metals Corp.*		20,601
	2,270	United States Steel Corp.		124,078
	2,000	Vulcan Materials Co.		114,560
	3,346	Weyerhaeuser Co.		165,694
				5,864,700
		Telecommunication Services—2.7%
	6,375	American Tower Corp., Class A*		260,164
	93,299	AT&T, Inc.(>)		2,431,372
	4,742	CenturyTel, Inc.		161,750
	4,945	Frontier Communications Corp.		39,362
	4,132	MetroPCS Communications, Inc.*		31,527
	23,559	Qwest Communications International, Inc.		123,213
	47,139	Sprint Nextel Corp.*		200,341
	44,827	Verizon Communications, Inc.(>)		1,295,052
	7,233	Windstream Corp.		79,925
				4,622,706
		Utilities—3.5%
	10,584	AES Corp. (The)*		122,139
	2,685	Allegheny Energy, Inc.		58,479
	3,750	Ameren Corp.		97,350
	7,568	American Electric Power Co., Inc.		259,582
	6,218	CenterPoint Energy, Inc.		89,290
	3,638	CMS Energy Corp.		59,154
	4,454	Consolidated Edison, Inc.		201,321
	3,183	Constellation Energy Group, Inc.		112,519
	9,501	Dominion Resources, Inc.		397,142
	2,611	DTE Energy Co.		125,772
	20,729	Duke Energy Corp.		347,833
	5,158	Edison International		177,280
	2,995	Entergy Corp.		243,464
	2,277	EQT Corp.		99,027
	10,448	Exelon Corp.		455,428
	4,826	FirstEnergy Corp.		182,761
	6,544	FPL Group, Inc.		340,615
	1,211	Integrys Energy Group, Inc.		60,078
	716	Nicor, Inc.		31,153
	4,382	NiSource, Inc.		71,427

See Notes to Financial Statements.

Schedule of Investments (Continued)

PowerShares S&P 500 BuyWrite Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks and Other Equity Interests(<) (Continued)
	2,778	Northeast Utilities	$	77,201
	4,146	NRG Energy, Inc.*		100,209
	1,670	ONEOK, Inc.		82,064
	3,520	Pepco Holdings, Inc.		58,925
	5,879	PG&E Corp.		257,500
	1,701	Pinnacle West Capital Corp.		63,515
	5,969	PPL Corp.		147,792
	4,505	Progress Energy, Inc.		179,840
	8,010	Public Service Enterprise Group, Inc.		257,361
	2,764	Questar Corp.		132,534
	1,765	SCANA Corp.		69,665
	3,911	Sempra Energy		192,343
	12,988	Southern Co.		448,865
	3,385	TECO Energy, Inc.		57,308
	1,850	Wisconsin Energy Corp.		97,143
	7,229	Xcel Energy, Inc.		157,231
				5,911,310
		Total Investments (Cost $137,298,505)—101.1%		169,678,793
		Liabilities in excess of other assets—(1.1%)		(1,838,965	)
		Net Assets—100.0%	$	167,839,828

Investment Abbreviations:

REIT—Real Estate Investment Trust

Notes to Schedule of Investments:

* Non-income producing security.

(<) Except as otherwise noted, a portion of all securities in the portfolio are subject to call options when written. See Note 2H.

(>) Security not subject to call options written.

(~) Affiliated company. The Fund's Advisor is a subsidiary of Invesco Ltd. and therefore, Invesco Ltd. is considered to be affiliated with the Fund. See Note 6.

See Notes to Financial Statements.

Schedule of Investments

PowerShares Value Line Industry Rotation Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.1%
		Agriculture—2.3%
	3,356	British American Tobacco PLC ADR (United Kingdom)	$	212,938
	4,370	Reynolds American, Inc.		233,446
				446,384
		Airlines—1.3%
	11,564	Continental Airlines, Inc., Class B*		258,455
		Apparel—4.7%
	2,270	Deckers Outdoor Corp.*		319,117
	2,868	Polo Ralph Lauren Corp.		257,833
	5,600	Steven Madden Ltd.*		324,576
				901,526
		Auto Parts & Equipment—3.0%
	8,162	Fuel Systems Solutions, Inc.*		256,858
	9,844	TRW Automotive Holdings Corp.*		317,075
				573,933
		Beverages—2.8%
	4,914	Boston Beer Co., Inc., Class A*		280,147
	30,636	Cott Corp. (Canada)*		256,423
				536,570
		Chemicals—4.3%
	6,226	Albemarle Corp.		284,279
	5,076	Ashland, Inc.		302,327
	7,962	Dow Chemical Co. (The)		245,468
				832,074
		Coal—2.4%
	5,120	Alpha Natural Resources, Inc.*		241,050
	4,877	CONSOL Energy, Inc.		217,904
				458,954
		Commercial Services—5.4%
	4,108	Alliance Data Systems Corp.*		308,347
	11,092	Corrections Corp. of America*		229,826
	3,754	DeVry, Inc.		234,212
	11,338	PAREXEL International Corp.*		267,350
				1,039,735
		Computers—4.9%
	23,280	Agilysys, Inc.		252,588
	4,144	Infosys Technologies Ltd. ADR (India)		248,143
	11,320	Seagate Technology (Cayman Islands)*		207,948
	5,638	Western Digital Corp.*		231,666
				940,345
		Cosmetics/Personal Care—2.5%
	3,919	Estee Lauder Cos., Inc. (The), Class A		258,340
	3,637	Procter & Gamble Co. (The)		226,076
				484,416
		Electric—1.2%
	11,092	Avista Corp.		239,920

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
		Electronics—1.3%
	14,414	Sanmina-SCI Corp.*	$	257,002
		Food—1.2%
	5,330	TreeHouse Foods, Inc.*		225,406
		Forest Products & Paper—1.4%
	9,808	MeadWestvaco Corp.		266,483
		Healthcare - Products—2.4%
	12,840	Align Technology, Inc.*		218,023
	671	Intuitive Surgical, Inc.*		241,936
				459,959
		Healthcare - Services—2.6%
	3,890	Amedisys, Inc.*		223,986
	13,130	Odyssey HealthCare, Inc.*		273,498
				497,484
		Home Furnishings—1.3%
	18,566	La-Z-Boy, Inc.*		242,101
		Household Products/Wares—2.9%
	12,476	American Greetings Corp., Class A		306,411
	5,086	Tupperware Brands Corp.		259,742
				566,153
		Insurance—5.1%
	4,778	Aflac, Inc.		243,487
	11,636	Assured Guaranty Ltd. (Bermuda)		250,756
	9,418	Greenlight Capital Re Ltd., Class A (Cayman Islands)*		241,289
	4,904	Reinsurance Group of America, Inc.		253,193
				988,725
		Internet—1.4%
	1,022	Priceline.com, Inc.*		267,815
		Investment Companies—2.7%
	7,148	Central Europe and Russia Fund, Inc. (The)		259,758
	13,128	Templeton Emerging Markets Fund		258,491
				518,249
		Media—8.1%
	10,206	Cablevision Systems Corp., Class A		280,053
	6,886	DIRECTV, Class A*		249,480
	5,498	John Wiley & Sons, Inc., Class A		232,400
	44,922	McClatchy Co. (The), Class A*		244,825
	17,454	News Corp., Class A		269,141
	7,844	Viacom, Inc., Class B*		277,128
				1,553,027
		Mining—2.8%
	3,122	Freeport-McMoRan Copper & Gold, Inc.		235,805
	15,580	Silver Wheaton Corp. (Canada)*		304,121
				539,926

See Notes to Financial Statements.

Schedule of Investments (Continued)

PowerShares Value Line Industry Rotation Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
		Miscellaneous Manufacturing—1.2%
	5,972	Pall Corp.	$	232,848
		Oil & Gas—1.4%
	4,796	Newfield Exploration Co.*		279,079
		Pharmaceuticals—6.5%
	5,880	Catalyst Health Solutions, Inc.*		248,783
	6,018	Herbalife Ltd. (Cayman Islands)		290,369
	3,682	Medco Health Solutions, Inc.*		216,943
	5,156	NBTY, Inc.*		209,746
	4,696	Perrigo Co.		286,597
				1,252,438
		Pipelines—1.3%
	7,130	Enterprise Products Partners LP		252,830
		Retail—9.1%
	13,898	99 Cents Only Stores*		215,697
	7,348	Big Lots, Inc.*		280,693
	11,410	CarMax, Inc.*		280,344
	6,098	Cash America International, Inc.		225,992
	5,664	Guess?, Inc.		259,808
	8,714	Nu Skin Enterprises, Inc., Class A		261,943
	5,420	P.F. Chang's China Bistro, Inc.*		236,529
				1,761,006
		Semiconductors—4.4%
	3,556	Cree, Inc.*		260,335
	23,870	Teradyne, Inc.*		291,930
	6,542	Veeco Instruments, Inc.*		287,782
				840,047
		Software—5.5%
	2,840	Cerner Corp.*		241,144
	18,843	Renaissance Learning, Inc.		267,759
	3,366	Salesforce.com, Inc.*		288,130
	6,714	Solera Holdings, Inc.		260,973
				1,058,006
		Telecommunications—1.3%
	13,374	Corning, Inc.		257,450
		Transportation—1.4%
	6,686	Kansas City Southern*		271,117
		Total Common Stocks and Other Equity Interests (Cost $17,217,104)		19,299,463

Number of Shares			Value
		Money Market Fund—0.1%
	25,565	Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $25,565)	$	25,565
		Total Investments (Cost $17,242,669)—100.2%		19,325,028
		Liabilities in excess of other assets—(0.2%)		(34,938	)
		Net Assets—100.0%	$	19,290,090

Investment Abbreviations:

ADR—American Depositary Receipt

Notes to Schedule of Investments:

* Non-income producing security.

See Notes to Financial Statements.

Schedule of Investments

PowerShares Value Line Timeliness^TM Select Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—35.1%
	10,285	Amazon.com, Inc.*	$	1,409,662
	29,425	Bed Bath & Beyond, Inc.*		1,352,373
	59,140	CarMax, Inc.*		1,453,070
	11,905	Deckers Outdoor Corp.*		1,673,605
	36,074	DIRECTV, Class A*		1,306,961
	49,070	Dress Barn, Inc. (The)*		1,358,258
	45,787	DSW, Inc., Class A*		1,382,767
	33,426	Fossil, Inc.*		1,300,271
	42,390	Fuel Systems Solutions, Inc.*		1,334,013
	34,210	Hasbro, Inc.		1,312,296
	31,800	Jo-Ann Stores, Inc.*		1,403,016
	9,814	National Presto Industries, Inc.		1,098,874
	18,620	Netflix, Inc.*		1,839,097
	16,680	Panera Bread Co., Class A*		1,300,039
	5,300	Priceline.com, Inc.*		1,388,865
	37,925	Urban Outfitters, Inc.*		1,422,567
	40,785	Viacom, Inc., Class B*		1,440,934
				23,776,668
		Consumer Staples—6.0%
	25,665	Boston Beer Co., Inc., Class A*		1,463,161
	20,565	Estee Lauder Cos., Inc. (The), Class A		1,355,645
	20,138	J.M. Smucker Co. (The)		1,229,828
				4,048,634
		Financials—3.8%
	62,010	EZCORP, Inc., Class A*		1,284,227
	25,695	Reinsurance Group of America, Inc.		1,326,633
				2,610,860
		Health Care—23.6%
	43,605	AmerisourceBergen Corp.		1,345,214
	30,765	Catalyst Health Solutions, Inc.*		1,301,667
	36,365	CIGNA Corp.		1,165,862
	24,189	Covidien PLC (Ireland)		1,160,830
	13,290	Edwards Lifesciences Corp.*		1,369,933
	23,540	Hospira, Inc.*		1,266,217
	52,725	Medicis Pharmaceutical Corp., Class A		1,338,161
	68,515	Odyssey HealthCare, Inc.*		1,427,167
	58,180	PAREXEL International Corp.*		1,371,884
	24,690	Perrigo Co.		1,506,831
	22,906	Stryker Corp.		1,315,721
	24,930	Varian Medical Systems, Inc.*		1,405,553
				15,975,040
		Information Technology—29.5%
	123,540	Agilysys, Inc.		1,340,409
	100,839	CEVA, Inc.*		1,234,269
	169,025	Cirrus Logic, Inc.*		2,148,308
	25,665	Cognizant Technology Solutions Corp., Class A*		1,313,535
	18,180	Cree, Inc.*		1,330,958

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	12,857	Equinix, Inc.*	$	1,294,057
	48,705	Informatica Corp.*		1,218,112
	21,720	Infosys Technologies Ltd. ADR (India)		1,300,594
	60,927	Marvell Technology Group Ltd. (Bermuda)*		1,258,143
	39,665	NetApp, Inc.*		1,375,185
	41,547	OSI Systems, Inc.*		1,081,884
	17,600	Salesforce.com, Inc.*		1,506,560
	35,445	Solera Holdings, Inc.		1,377,747
	62,879	TeleTech Holdings, Inc.*		1,040,647
	28,703	Western Digital Corp.*		1,179,406
				19,999,814
		Telecommunication Services—2.0%
	31,790	NII Holdings, Inc.*		1,348,532
		Total Common Stocks and Other Equity Interests (Cost $59,140,907)		67,759,548
		Money Market Fund—0.1%
	80,038	Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $80,038)		80,038
		Total Investments (Cost $59,220,945)—100.1%		67,839,586
		Liabilities in excess of other assets—(0.1%)		(94,071	)
		Net Assets—100.0%	$	67,745,515

Investment Abbreviations:

ADR—American Depositary Receipt

Notes to Schedule of Investments:

* Non-income producing security.

See Notes to Financial Statements.

Schedule of Investments

PowerShares Water Resources Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Electronics—12.3%
	1,348,472	Badger Meter, Inc.(~)	$	55,772,802
	789,901	Itron, Inc.*		62,884,019
	1,271,511	Watts Water Technologies, Inc., Class A		45,113,210
				163,770,031
		Engineering & Construction—15.5%
	2,184,464	Aecom Technology Corp.*		65,686,832
	1,516,332	Insituform Technologies, Inc., Class A*		36,346,478
	1,425,218	Layne Christensen Co.(~)*		39,022,469
	1,296,737	URS Corp.*		66,587,445
				207,643,224
		Environmental Control—10.9%
	2,311,439	Calgon Carbon Corp.*		35,827,305
	1,684,954	Nalco Holding Co.		41,668,912
	2,797,447	Tetra Tech, Inc.*		68,117,834
				145,614,051
		Hand/Machine Tools—3.6%
	1,359,111	Franklin Electric Co., Inc.(~)		47,555,294
		Machinery - Diversified—17.8%
	485,982	Flowserve Corp.		55,683,818
	1,491,919	Gorman-Rupp Co. (The)(~)		41,609,621
	1,214,177	IDEX Corp.		40,796,347
	1,123,742	Lindsay Corp.(~)		42,735,908
	934,275	Roper Industries, Inc.		57,009,461
				237,835,155
		Metal Fabricate/Hardware—9.9%
	8,284,655	Mueller Water Products, Inc., Class A(~)		46,394,068
	831,334	Northwest Pipe Co.(~)*		20,051,776
	782,946	Valmont Industries, Inc.		65,211,572
				131,657,416
		Miscellaneous Manufacturing—18.2%
	829,892	Ameron International Corp.(~)		57,586,206
	751,240	Danaher Corp.		63,314,507
	755,580	ITT Corp.		41,987,581
	999,978	Pall Corp.		38,989,142
	1,150,382	Pentair, Inc.		41,597,813
				243,475,249
		Water—11.8%
	545,827	American States Water Co.		20,370,264
	875,117	American Water Works Co., Inc.		19,060,048
	1,081,178	Aqua America, Inc.		19,817,993
	545,345	Companhia de Saneamento Basico do Estado de Sao Paulo ADR (Brazil)*		21,459,326
	1,308,782	Consolidated Water Co. Ltd. (Cayman Islands)(~)		18,519,265

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	1,869,580	Veolia Environnement ADR (France)	$	58,312,200
				157,539,096
		Total Common Stocks and Other Equity Interests (Cost $1,286,173,423)		1,335,089,516
		Money Market Fund—0.0%
	12,974	Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $12,974)		12,974
		Total Investments (Cost $1,286,186,397)—100.0%		1,335,102,490
		Liabilities in excess of other assets—(0.0%)		(69,191	)
		Net Assets—100.0%	$	1,335,033,299

Investment Abbreviations:

ADR—American Depositary Receipt

Notes to Schedule of Investments:

(~) Affiliated Investment. See Note 6.

* Non-income producing security.

See Notes to Financial Statements.

Schedule of Investments

PowerShares WilderHill Clean Energy Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Auto Parts & Equipment—3.8%
	1,161,239	Amerigon, Inc.(~)*	$	11,391,755
	418,426	Fuel Systems Solutions, Inc.*		13,167,866
				24,559,621
		Building Materials—2.0%
	3,375,527	Broadwind Energy, Inc.*		13,367,087
		Chemicals—9.2%
	193,181	Air Products & Chemicals, Inc.		14,832,437
	420,909	OM Group, Inc.*		15,889,315
	389,192	Sociedad Quimica y Minera de Chile SA ADR (Chile)		14,010,912
	1,588,483	Zoltek Cos., Inc.*		15,630,672
				60,363,336
		Commercial Services—2.3%
	758,648	Quanta Services, Inc.*		15,271,584
		Computers—4.8%
	1,621,740	Echelon Corp.*		15,325,443
	1,123,417	Maxwell Technologies, Inc.*		16,210,907
				31,536,350
		Electric—10.5%
	962,653	Calpine Corp.*		13,120,960
	186,114	CPFL Energia SA ADR (Brazil)		11,574,430
	325,086	IDACORP, Inc.		11,729,103
	565,840	Ormat Technologies, Inc.		18,027,662
	584,952	Portland General Electric Co.		11,628,846
	3,222,727	U.S. Geothermal, Inc.*		3,061,913
				69,142,914
		Electrical Components & Equipment—26.4%
	968,121	A123 Systems, Inc.*		12,062,788
	3,700,321	Advanced Battery Technologies, Inc.(~)*		12,840,114
	458,077	American Superconductor Corp.*		13,366,687
	7,445,739	Beacon Power Corp.*		3,201,668
	710,961	Canadian Solar, Inc. (China)*		12,313,844
	1,363,460	China BAK Battery, Inc.*		2,740,555
	3,067,786	Ener1, Inc.*		12,761,990
	2,169,976	Energy Conversion Devices, Inc.*		15,450,229
	3,126,235	JA Solar Holdings Co. Ltd. ADR (China)*		19,101,296
	1,351,905	Satcon Technology Corp.*		3,798,853
	859,630	SunPower Corp., Class A*		14,226,876
	1,108,452	Suntech Power Holdings Co. Ltd. ADR (China)*		15,074,947
	1,274,924	Universal Display Corp.*		17,020,235
	3,709,881	Valence Technology, Inc.*		3,895,375
	1,248,004	Yingli Green Energy Holding Co. Ltd. ADR (China)*		15,762,291
				173,617,748

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
		Electronics—3.0%
	202,078	Itron, Inc.*	$	16,087,429
	874,111	UQM Technologies, Inc.*		3,819,865
				19,907,294
		Energy - Alternate Sources—13.0%
	835,212	Ascent Solar Technologies, Inc.*		3,182,158
	4,239,866	Ballard Power Systems, Inc. (Canada)(~)*		9,963,685
	1,305,442	Comverge, Inc.(~)*		14,803,712
	134,443	First Solar, Inc.*		19,299,292
	4,400,689	FuelCell Energy, Inc.(~)*		12,101,895
	2,532,140	Gushan Environmental Energy Ltd. ADR (China)*		2,582,783
	464,412	Ocean Power Technologies, Inc.*		3,176,578
	4,493,660	Quantum Fuel Systems Technologies Worldwide, Inc.*		3,150,056
	666,486	Trina Solar Ltd. ADR (Cayman Islands)*		17,241,993
				85,502,152
		Food—2.5%
	1,548,787	Cosan Ltd., Class A (Brazil)*		16,448,118
		Machinery - Diversified—0.4%
	3,282,744	Raser Technologies, Inc.*		2,647,205
		Miscellaneous Manufacturing—2.4%
	679,528	STR Holdings, Inc.*		15,669,916
		Semiconductors—19.7%
	408,357	Aixtron AG ADR (Germany)		12,830,577
	1,114,716	Applied Materials, Inc.		15,360,787
	209,971	Cree, Inc.*		15,371,977
	2,512,206	EMCORE Corp.*		3,366,356
	2,742,158	GT Solar International, Inc.*		15,986,781
	566,696	International Rectifier Corp.*		13,045,342
	1,003,089	MEMC Electronic Materials, Inc.*		13,010,064
	2,624,845	Renesola Ltd. ADR (British Virgin Islands)*		20,500,039
	740,712	Rubicon Technology, Inc.*		20,102,924
				129,574,847
		Total Common Stocks and Other Equity Interests (Cost $799,449,925)		657,608,172

See Notes to Financial Statements.

Schedule of Investments (Continued)

PowerShares WilderHill Clean Energy Portfolio

April 30, 2010

Number of Shares			Value
		Money Market Fund—0.0%
	166,428	Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $166,428)	$	166,428
		Total Investments (Cost $799,616,353)—100.0%		657,774,600
		Liabilities in excess of other assets—(0.0%)		(288,992	)
		Net Assets—100.0%	$	657,485,608

Investment Abbreviations:

ADR—American Depositary Receipt

Notes to Schedule of Investments:

(~) Affiliated Investment. See Note 6.

* Non-income producing security.

See Notes to Financial Statements.

Schedule of Investments

PowerShares WilderHill Progressive Energy Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks and Other Equity Interests—99.9%
		Agriculture—2.6%
	42,793	Andersons, Inc. (The)	$	1,546,539
		Auto Parts & Equipment—9.8%
	225,234	Exide Technologies*		1,337,890
	40,105	Johnson Controls, Inc.		1,347,127
	66,788	Tenneco, Inc.*		1,721,127
	78,263	Westport Innovations, Inc. (Canada)*		1,486,997
				5,893,141
		Building Materials—3.2%
	55,191	Owens Corning*		1,919,543
		Chemicals—7.1%
	57,455	Methanex Corp. (Canada)		1,331,807
	17,184	Praxair, Inc.		1,439,504
	51,246	Rockwood Holdings, Inc.*		1,534,305
				4,305,616
		Computers—2.1%
	43,804	Telvent GIT SA (Spain)*		1,265,936
		Electric—9.9%
	79,710	Centrais Eletricas Brasileiras SA ADR (Brazil)		1,139,056
	76,330	Companhia Energetica de Minas Gerais SA ADR (Brazil)		1,232,731
	41,959	EnerNOC, Inc.*		1,220,168
	58,882	Enersis SA ADR (Chile)		1,171,163
	23,991	FPL Group, Inc.		1,248,731
				6,011,849
		Electrical Components & Equipment—14.1%
	107,688	A-Power Energy Generation Systems Ltd.*		1,129,647
	213,997	Capstone Turbine Corp.*		261,077
	25,192	Emerson Electric Co.		1,315,778
	20,183	Energizer Holdings, Inc.*		1,233,181
	51,416	EnerSys*		1,330,646
	45,988	General Cable Corp.*		1,313,877
	101,001	GrafTech International Ltd.*		1,702,877
	25,354	SmartHeat, Inc.*		212,720
				8,499,803
		Electronics—4.2%
	37,777	Koninklijke Philips Electronics NV (Netherlands)		1,259,485
	40,482	Woodward Governor Co.		1,297,448
				2,556,933
		Energy - Alternate Sources—4.5%
	59,010	Clean Energy Fuels Corp.*		1,039,756
	75,667	Covanta Holding Corp.*		1,322,659
	59,247	Headwaters, Inc.*		355,482
				2,717,897
		Engineering & Construction—4.8%
	49,018	Foster Wheeler AG (Switzerland)*		1,469,559
	51,426	McDermott International, Inc.*		1,409,587
				2,879,146

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
		Environmental Control—3.4%
	198,820	EnergySolutions, Inc.	$	1,441,445
	35,013	Fuel Tech, Inc.*		262,947
	278,403	Rentech, Inc.*		348,004
				2,052,396
		Hand/Machine Tools—2.1%
	33,815	Baldor Electric Co.		1,298,834
		Mining—4.6%
	52,349	Cameco Corp. (Canada)		1,288,309
	250,342	USEC, Inc.*		1,502,052
				2,790,361
		Miscellaneous Manufacturing—10.0%
	17,689	Eaton Corp.		1,364,883
	39,144	ESCO Technologies, Inc.		1,207,592
	92,502	Hexcel Corp.*		1,498,533
	18,500	LSB Industries, Inc.*		328,560
	21,924	PMFG, Inc.*		315,267
	13,471	Siemens AG ADR (Germany)		1,315,309
				6,030,144
		Oil & Gas—12.7%
	62,670	Chesapeake Energy Corp.		1,491,546
	32,986	Questar Corp.		1,581,679
	30,696	Range Resources Corp.		1,466,041
	41,357	Sasol Ltd. ADR (South Africa)		1,681,162
	37,186	Southwestern Energy Co.*		1,475,540
				7,695,968
		Semiconductors—2.2%
	30,620	Veeco Instruments, Inc.*		1,346,974
		Telecommunications—2.6%
	82,110	Corning, Inc.		1,580,618
		Total Common Stocks and Other Equity Interests (Cost $53,075,157)		60,391,698
		Money Market Fund—0.1%
	60,796	Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $60,796)		60,796
		Total Investments (Cost $53,135,953)—100.0%		60,452,494
		Liabilities in excess of other assets—(0.0%)		(1,280	)
		Net Assets—100.0%	$	60,451,214

Investment Abbreviations:

ADR—American Depositary Receipt

Notes to Schedule of Investments:

* Non-income producing security.

See Notes to Financial Statements.

Statements of Assets and Liabilities

April 30, 2010

	PowerShares Aerospace & Defense Portfolio			PowerShares Cleantech^TMPortfolio			PowerShares DWA Technical Leaders^TMPortfolio			PowerShares Global Listed Private Equity Portfolio			PowerShares Golden Dragon Halter USX China Portfolio			PowerShares Lux Nanotech Portfolio			PowerShares NASDAQ-100 BuyWrite Portfolio
ASSETS:
Unaffiliated investments, at value	$	137,447,311		$	160,038,970		$	159,525,616		$	212,896,586		$	455,454,548		$	55,395,829		$	11,205,733
Affiliated investments, at value (Note 6)		—			—			—			—			—			—			—
Foreign cash, at value		—			28,989			—			5,727			—			—			—
Receivables:
Dividends		42,716			53,274			38,841			119,033			1,005,968			11,912			1,300
Expense waivers		633			—			—			4,048			41,485			—			—
Investments sold		—			2,544,630			—			21,647,403			—			503,892			—
Foreign tax reclaims		—			62,774			—			16,118			—			—			—
Shares sold		—			—			—			994,634			—			—			—
Other assets		3,000			3,000			3,000			3,000			3,000			3,000			—
Total Assets		137,493,660			162,731,637			159,567,457			235,686,549			456,505,001			55,914,633			11,207,033
LIABILITES:
Due to custodian		6,323			6,438			5,659			6,675			102,452			6,064			—
Payables:
Shares repurchased		—			2,541,761			—			22,593,780			—			529,606			—
Investments purchased		—			—			—			990,216			337,466			—			—
Expense recapture		—			2,538			3,823			—			—			371			—
Open written options, at value		—			—			—			—			—			—			129,963
Accrued advisory fees		55,696			67,074			63,897			96,620			188,427			23,672			6,867
Accrued expenses		94,091			92,674			122,768			119,800			353,369			64,849			—
Total Liabilities		156,110			2,710,485			196,147			23,807,091			981,714			624,562			136,830
NET ASSETS	$	137,337,550		$	160,021,152		$	159,371,310		$	211,879,458		$	455,523,287		$	55,290,071		$	11,070,203
NET ASSETS CONSIST OF:
Shares of beneficial interest	$	184,986,888		$	211,256,759		$	286,696,813		$	271,644,014		$	621,693,245		$	117,046,442		$	10,162,383
Undistributed net investment income (loss)		126,024			(4,993	)		120,278			8,504			(317,994	)		(4,088	)		—
Accumulated net realized gain (loss) on investments and foreign currency related transactions		(25,644,062	)		(50,852,148	)		(160,648,541	)		(83,926,414	)		(169,481,045	)		(58,747,453	)		(2,375,889	)
Net unrealized appreciation (depreciation) on investments and translation of assets and liabilities in foreign currencies		(22,131,300	)		(378,466	)		33,202,760			24,153,354			3,629,081			(3,004,830	)		3,283,709
Net Assets	$	137,337,550		$	160,021,152		$	159,371,310		$	211,879,458		$	455,523,287		$	55,290,071		$	11,070,203
Shares outstanding (unlimited amount authorized, $0.01 par value)		7,200,000			6,400,000			7,500,000			21,100,000			18,200,000			5,350,000			500,000
Net asset value	$	19.07		$	25.00		$	21.25		$	10.04		$	25.03		$	10.33		$	22.14
Share price	$	19.07		$	24.80		$	21.24		$	10.06		$	25.11		$	10.32		$	22.17
Unaffiliated investments, at cost	$	159,578,611		$	160,413,265		$	126,322,856		$	188,741,409		$	451,825,467		$	58,400,659		$	7,981,774
Affiliated investments, at cost	$	—		$	—		$	—		$	—		$	—		$	—		$	—
Foreign cash, at cost	$	—		$	29,203		$	—		$	5,707		$	—		$	—		$	—
Premium received	$	—		$	—		$	—		$	—		$	—		$	—		$	189,713

See Notes to Financial Statements.

	PowerShares S&P 500 BuyWrite Portfolio			PowerShares Value Line Industry Rotation Portfolio			PowerShares Value Line Timeliness^TMSelect Portfolio			PowerShares Water Resources Portfolio			PowerShares WilderHill Clean Energy Portfolio			PowerShares WilderHill Progressive Energy Portfolio
ASSETS:
Unaffiliated investments, at value	$	169,522,737		$	19,325,028		$	67,839,586		$	965,855,081		$	596,673,439		$	60,452,494
Affiliated investments, at value (Note 6)		156,056			—			—			369,247,409			61,101,161			—
Foreign cash, at value		—			—			—			—			—			—
Receivables:
Dividends		170,070			14,204			13,108			1,276,693			599,841			84,256
Expense waivers		—			6,141			2,032			—			12,272			5,039
Investments sold		—			4,046			—			337,240			1,491,676			—
Foreign tax reclaims		—			—			—			442,715			—			—
Shares sold		—			—			—			—			—			—
Other assets		—			3,000			3,000			2,000			2,000			3,000
Total Assets		169,848,863			19,352,419			67,857,726			1,337,161,138			659,880,389			60,544,789
LIABILITES:
Due to custodian		48,258			6,064			6,063			15,947			17,213			6,064
Payables:
Shares repurchased		—			—			—			—			1,527,742			—
Investments purchased		—			—			—			878,084			—			—
Expense recapture		—			—			—			—			—			—
Open written options, at value		1,857,700			—			—			—			—			—
Accrued advisory fees		103,077			8,617			28,935			546,105			275,732			25,141
Accrued expenses		—			47,648			77,213			687,703			574,094			62,370
Total Liabilities		2,009,035			62,329			112,211			2,127,839			2,394,781			93,575
NET ASSETS	$	167,839,828		$	19,290,090		$	67,745,515		$	1,335,033,299		$	657,485,608		$	60,451,214
NET ASSETS CONSIST OF:
Shares of beneficial interest	$	158,536,980		$	45,504,622		$	192,921,373		$	1,718,554,929		$	1,837,681,122		$	75,553,872
Undistributed net investment income (loss)		143,134			1,416			(5,321	)		398,523			(24,281	)		119,181
Accumulated net realized gain (loss) on investments and foreign currency related transactions		(23,947,474	)		(28,298,307	)		(133,789,178	)		(432,836,246	)		(1,038,329,480	)		(22,538,380	)
Net unrealized appreciation (depreciation) on investments and translation of assets and liabilities in foreign currencies		33,107,188			2,082,359			8,618,641			48,916,093			(141,841,753	)		7,316,541
Net Assets	$	167,839,828		$	19,290,090		$	67,745,515		$	1,335,033,299		$	657,485,608		$	60,451,214
Shares outstanding (unlimited amount authorized, $0.01 par value)		7,800,000			950,000			5,550,000			73,950,000			65,000,000			2,400,000
Net asset value	$	21.52		$	20.31		$	12.21		$	18.05		$	10.12		$	25.19
Share price	$	21.52		$	20.31		$	12.21		$	18.27		$	10.22		$	25.19
Unaffiliated investments, at cost	$	137,178,478		$	17,242,669		$	59,220,945		$	910,830,248		$	724,556,014		$	53,135,953
Affiliated investments, at cost	$	120,027		$	—		$	—		$	375,356,149		$	75,060,339		$	—
Foreign cash, at cost	$	—		$	—		$	—		$	—		$	—		$	—
Premium received	$	2,584,600		$	—		$	—		$	—		$	—		$	—

Statements of Operations

Year Ended April 30, 2010

	PowerShares Aerospace & Defense Portfolio			PowerShares Cleantech^TMPortfolio			PowerShares DWA Technical Leaders^TM Portfolio			PowerShares Global Listed Private Equity Portfolio			PowerShares Golden Dragon Halter USX China Portfolio			PowerShares Lux Nanotech Portfolio			PowerShares NASDAQ-100 BuyWrite Portfolio
INVESTMENT INCOME:
Unaffiliated dividend income	$	2,225,021		$	1,216,209		$	1,372,366		$	6,673,324		$	5,914,381		$	352,641		$	61,404
Affiliated dividend income		—			—			—			—			—			—			—
Foreign withholding tax		(6,093	)		(116,818	)		—			(186,621	)		(516,692	)		(1,590	)		(537	)
Total Income		2,218,928			1,099,391			1,372,366			6,486,703			5,397,689			351,051			60,867
EXPENSES:
Advisory fees		638,835			697,837			651,728			744,150			2,135,427			267,285			62,541
Sub-licensing		76,660			104,675			130,345			148,830			427,085			53,457			—
Accounting & administration fees		64,668			64,668			69,995			64,668			104,245			64,668			—
Professional fees		35,345			59,564			36,040			40,804			45,674			32,001			—
Custodian & transfer agent fees		13,980			9,266			15,484			18,453			38,344			7,987			—
Trustees		8,347			8,591			8,591			8,334			17,690			5,830			—
Other expenses		40,559			52,403			43,118			41,892			274,466			21,749			—
Total Expenses		878,394			997,004			955,301			1,067,131			3,042,931			452,977			62,541
Waivers		(35,132	)		(54,925	)		(43,037	)		(25,321	)		(53,336	)		(78,778	)		—
Net Expenses		843,262			942,079			912,264			1,041,810			2,989,595			374,199			62,541
Net Investment Income (Loss)		1,375,666			157,312			460,102			5,444,893			2,408,094			(23,148	)		(1,674	)
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) from:
Investments		(15,711,782	)		(9,683,392	)		(8,450,841	)		(10,513,016	)		(88,226,635	)		(8,583,777	)		(51,185	)
Written options		—			—			—			—			—			—			(1,393,398	)
In-kind redemptions		(124,327	)		3,615,302			25,109,268			18,952,028			30,783,958			2,921,870			—
Foreign currency related transactions		—			(29,808	)		—			(793,861	)		—			—			—
Net realized gain (loss)		(15,836,109	)		(6,097,898	)		16,658,427			7,645,151			(57,442,677	)		(5,661,907	)		(1,444,583	)
Net change in unrealized appreciation (depreciation) on:
Investments		60,642,047			40,142,056			34,450,917			40,024,153			187,055,633			20,148,115			3,117,989
Written options		—			—			—			—			—			—			148,755
Translation of asset and liabilities denominated in foreign currencies		—			(4,017	)		—			(1,823	)		—			—			—
Net change in unrealized appreciation		60,642,047			40,138,039			34,450,917			40,022,330			187,055,633			20,148,115			3,266,744
Net realized and unrealized gain on investments		44,805,938			34,040,141			51,109,344			47,667,481			129,612,956			14,486,208			1,822,161
Net increase in net assets resulting from operations	$	46,181,604		$	34,197,453		$	51,569,446		$	53,112,374		$	132,021,050		$	14,463,060		$	1,820,487

See Notes to Financial Statements.

	PowerShares S&P 500 BuyWrite Portfolio			PowerShares Value Line Industry Rotation Portfolio			PowerShares Value Line Timeliness^TMSelect Portfolio			PowerShares Water Resources Portfolio			PowerShares WilderHill Clean Energy Portfolio			PowerShares WilderHill Progressive Energy Portfolio
INVESTMENT INCOME:
Unaffiliated dividend income	$	2,689,727		$	244,877		$	485,081		$	12,213,406		$	3,996,011		$	752,878
Affiliated dividend income		2,323			—			—			4,315,845			—			—
Foreign withholding tax		—			(917	)		(18,247	)		(754,783	)		(197,691	)		(47,700	)
Total Income		2,692,050			243,960			466,834			15,774,468			3,798,320			705,178
EXPENSES:
Advisory fees		961,691			125,923			346,695			6,554,623			3,673,654			266,050
Sub-licensing		—			25,185			69,339			983,194			734,731			51,980
Accounting & administration fees		—			64,668			64,668			321,532			181,644			64,668
Professional fees		—			30,908			32,879			86,120			61,197			31,941
Custodian & transfer agent fees		—			9,945			8,838			80,103			47,933			8,874
Trustees		—			4,924			6,480			49,005			29,398			5,787
Other expenses		—			12,255			23,865			277,786			442,675			17,009
Total Expenses		961,691			273,808			552,764			8,352,363			5,171,232			446,309
Waivers		—			(97,515	)		(67,391	)		—			(28,116	)		(75,069	)
Net Expenses		961,691			176,293			485,373			8,352,363			5,143,116			371,240
Net Investment Income (Loss)		1,730,359			67,667			(18,539	)		7,422,105			(1,344,796	)		333,938
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) from:
Investments		(4,427,200	)		(3,063,503	)		(8,060,598	)		(115,093,687	)		(221,731,752	)		(3,202,760	)
Written options		(15,258,419	)		—			—			—			—			—
In-kind redemptions		687,542			8,744,909			18,277,159			37,430,431			53,786,479			904,976
Foreign currency related transactions		—			—			—			—			—			—
Net realized gain (loss)		(18,998,077	)		5,681,406			10,216,561			(77,663,256	)		(167,945,273	)		(2,297,784	)
Net change in unrealized appreciation (depreciation) on:
Investments		40,967,375			1,537,408			6,724,746			403,374,916			245,604,627			20,849,396
Written options		415,292			—			—			—			—			—
Translation of asset and liabilities denominated in foreign currencies		—			—			—			—			—			—
Net change in unrealized appreciation		41,382,667			1,537,408			6,724,746			403,374,916			245,604,627			20,849,396
Net realized and unrealized gain on investments		22,384,590			7,218,814			16,941,307			325,711,660			77,659,354			18,551,612
Net increase in net assets resulting from operations	$	24,114,949		$	7,286,481		$	16,922,768		$	333,133,765		$	76,314,558		$	18,885,550

Statements of Changes in Net Assets

	PowerShares Aerospace & Defense Portfolio						PowerShares Cleantech^TM Portfolio						PowerShares DWA Technical Leaders^TM Portfolio
	Year Ended April 30, 2010			Year Ended April 30, 2009			Year Ended April 30, 2010			Year Ended April 30, 2009			Year Ended April 30, 2010			Year Ended April 30, 2009
OPERATIONS:
Net investment income (loss)	$	1,375,666		$	1,626,906		$	157,312		$	(9,129	)	$	460,102		$	990,079
Net realized gain (loss) on investments and foreign currency related transactions		(15,836,109	)		(17,054,727	)		(6,097,898	)		(30,006,204	)		16,658,427			(173,699,963	)
Net change in unrealized appreciation (depreciation) on investments and translation of assets and liabilities denominated in foreign currencies		60,642,047			(66,015,919	)		40,138,039			(41,945,980	)		34,450,917			(17,193,055	)
Net increase (decrease) in net assets resulting from operations		46,181,604			(81,443,740	)		34,197,453			(71,961,313	)		51,569,446			(189,902,939	)
Undistributed net investment income (loss) included in the price of units issued and redeemed		(44,617	)		(109,833	)		(48,876	)		(244,900	)		(137,660	)		(380,236	)
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income		(1,645,392	)		(1,446,628	)		(223,251	)		—			(843,823	)		(486,080	)
Return of capital		—			—			(75,171	)		—			—			—
Net realized gains		—			—			—			—			—			—
Total distributions to shareholders		(1,645,392	)		(1,446,628	)		(298,422	)		—			(843,823	)		(486,080	)
SHAREHOLDER TRANSACTIONS:
Proceeds from shares sold		13,619,982			29,268,610			24,079,029			76,687,579			153,039,448			263,642,733
Value of shares repurchased		(37,248,118	)		(87,444,233	)		(9,630,426	)		(7,389,055	)		(182,942,658	)		(298,218,621	)
Net income equalization		44,617			109,833			48,876			244,900			137,660			380,236
Net increase (decrease) in net assets resulting from shares transactions		(23,583,519	)		(58,065,790	)		14,497,479			69,543,424			(29,765,550	)		(34,195,652	)
Increase (Decrease) in Net Assets		20,908,076			(141,065,991	)		48,347,634			(2,662,789	)		20,822,413			(224,964,907	)
NET ASSETS:
Beginning of year		116,429,474			257,495,465			111,673,518			114,336,307			138,548,897			363,513,804
End of year	$	137,337,550		$	116,429,474		$	160,021,152		$	111,673,518		$	159,371,310		$	138,548,897
Undistributed net investment income (loss) at end of year	$	126,024		$	395,750		$	(4,993	)	$	90,754		$	120,278		$	503,999
CHANGES IN SHARES OUTSTANDING:
Shares sold		850,000			1,800,000			1,000,000			2,700,000			8,750,000			12,600,000
Shares repurchased		(2,350,000	)		(5,400,000	)		(400,000	)		(300,000	)		(11,050,000	)		(16,800,000	)
Shares outstanding, beginning of year		8,700,000			12,300,000			5,800,000			3,400,000			9,800,000			14,000,000
Shares outstanding, end of year		7,200,000			8,700,000			6,400,000			5,800,000			7,500,000			9,800,000

See Notes to Financial Statements.

	PowerShares Global Listed Private Equity Portfolio						PowerShares Golden Dragon Halter USX China Portfolio						PowerShares Lux Nanotech Portfolio
	Year Ended April 30, 2010			Year Ended April 30, 2009			Year Ended April 30, 2010			Year Ended April 30, 2009			Year Ended April 30, 2010			Year Ended April 30, 2009
OPERATIONS:
Net investment income (loss)	$	5,444,893		$	6,276,507		$	2,408,094		$	3,372,935		$	(23,148	)	$	97,124
Net realized gain (loss) on investments and foreign currency related transactions		7,645,151			(113,617,040	)		(57,442,677	)		(80,404,864	)		(5,661,907	)		(37,494,625	)
Net change in unrealized appreciation (depreciation) on investments and translation of assets and liabilities denominated in foreign currencies		40,022,330			19,810,362			187,055,633			(115,281,921	)		20,148,115			1,642,166
Net increase (decrease) in net assets resulting from operations		53,112,374			(87,530,171	)		132,021,050			(192,313,850	)		14,463,060			(35,755,335	)
Undistributed net investment income (loss) included in the price of units issued and redeemed		4,003,173			1,520,354			455,464			(415,792	)		5,513			4,781
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income		(4,710,562	)		(6,364,696	)		(3,271,139	)		(2,867,142	)		(101,214	)		—
Return of capital		—			—			(501,022	)		—			(16	)		—
Net realized gains		—			—			—			—			—			—
Total distributions to shareholders		(4,710,562	)		(6,364,696	)		(3,772,161	)		(2,867,142	)		(101,230	)		—
SHAREHOLDER TRANSACTIONS:
Proceeds from shares sold		167,432,792			78,938,052			142,365,948			124,754,282			8,086,112			17,226,459
Value of shares repurchased		(64,431,077	)		(27,946,437	)		(94,581,842	)		(178,565,999	)		(6,641,822	)		(26,415,388	)
Net income equalization		(4,003,173	)		(1,520,354	)		(455,464	)		415,792			(5,513	)		(4,781	)
Net increase (decrease) in net assets resulting from shares transactions		98,998,542			49,471,261			47,328,642			(53,395,925	)		1,438,777			(9,193,710	)
Increase (Decrease) in Net Assets		151,403,527			(42,903,252	)		176,032,995			(248,992,709	)		15,806,120			(44,944,264	)
NET ASSETS:
Beginning of year		60,475,931			103,379,183			279,490,292			528,483,001			39,483,951			84,428,215
End of year	$	211,879,458		$	60,475,931		$	455,523,287		$	279,490,292		$	55,290,071		$	39,483,951
Undistributed net investment income (loss) at end of year	$	8,504		$	226,162		$	(317,994	)	$	505,793		$	(4,088	)	$	97,124
CHANGES IN SHARES OUTSTANDING:
Shares sold		18,900,000			6,700,000			6,350,000			5,800,000			800,000			1,600,000
Shares repurchased		(6,800,000	)		(2,800,000	)		(4,150,000	)		(8,100,000	)		(650,000	)		(2,400,000	)
Shares outstanding, beginning of year		9,000,000			5,100,000			16,000,000			18,300,000			5,200,000			6,000,000
Shares outstanding, end of year		21,100,000			9,000,000			18,200,000			16,000,000			5,350,000			5,200,000

Statements of Changes in Net Assets (Continued)

	PowerShares NASDAQ-100 BuyWrite Portfolio						PowerShares S&P 500 BuyWrite Portfolio						PowerShares Value Line Industry Rotation Portfolio
	Year Ended April 30, 2010			For the Period June 9, 2008* Through April 30, 2009			Year Ended April 30, 2010			Year Ended April 30, 2009			Year Ended April 30, 2010			Year Ended April 30, 2009
OPERATIONS:
Net investment income (loss)	$	(1,674	)	$	(1,870	)	$	1,730,359		$	950,362		$	67,667		$	175,511
Net realized gain (loss) on investments and foreign currency related transactions		(1,444,583	)		(423,372	)		(18,998,077	)		(4,845,289	)		5,681,406			(23,805,859	)
Net change in unrealized appreciation (depreciation) on investments and translation of assets and liabilities denominated in foreign currencies		3,266,744			16,965			41,382,667			(8,332,881	)		1,537,408			(1,182,836	)
Net increase (decrease) in net assets resulting from operations		1,820,487			(408,277	)		24,114,949			(12,227,808	)		7,286,481			(24,813,184	)
Undistributed net investment income (loss) included in the price of units issued and redeemed		(115,127	)		(5,030	)		(4,975	)		(113,226	)		(6,004	)		(7,380	)
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income		(447,704	)		—			(1,778,095	)		(887,380	)		(145,806	)		(100,862	)
Return of capital		—			—			—			—			—			—
Net realized gains		(58,556	)		—			—			—			—			—
Total distributions to shareholders		(506,260	)		—			(1,778,095	)		(887,380	)		(145,806	)		(100,862	)
SHAREHOLDER TRANSACTIONS:
Proceeds from shares sold		4,231,495			5,932,758			63,425,020			110,330,594			43,952,344			72,452,696
Value of shares repurchased		—			—			(2,133,217	)		(20,504,978	)		(58,310,478	)		(62,881,279	)
Net income equalization		115,127			5,030			4,975			113,226			6,004			7,380
Net increase (decrease) in net assets resulting from shares transactions		4,346,622			5,937,788			61,296,778			89,938,842			(14,352,130	)		9,578,797
Increase (Decrease) in Net Assets		5,545,722			5,524,481			83,628,657			76,710,428			(7,217,459	)		(15,342,629	)
NET ASSETS:
Beginning of year		5,524,481			—			84,211,171			7,500,743			26,507,549			41,850,178
End of year	$	11,070,203		$	5,524,481		$	167,839,828		$	84,211,171		$	19,290,090		$	26,507,549
Undistributed net investment income (loss) at end of year	$	—		$	—		$	143,134		$	190,870		$	1,416		$	74,653
CHANGES IN SHARES OUTSTANDING:
Shares sold		200,000			300,000			3,100,000			5,700,000			2,550,000			3,100,000
Shares repurchased		—			—			(100,000	)		(1,200,000	)		(3,300,000	)		(2,900,000	)
Shares outstanding, beginning of year		300,000			—			4,800,000			300,000			1,700,000			1,500,000
Shares outstanding, end of year		500,000			300,000			7,800,000			4,800,000			950,000			1,700,000

* Commencement of Investment Operations

See Notes to Financial Statements.

	PowerShares Value Line Timeliness^TMSelect Portfolio						PowerShares Water Resources Portfolio						PowerShares WilderHill Clean Energy Portfolio
	Year Ended April 30, 2010			Year Ended April 30, 2009			Year Ended April 30, 2010			Year Ended April 30, 2009			Year Ended April 30, 2010			Year Ended April 30, 2009
OPERATIONS:
Net investment income (loss)	$	(18,539	)	$	327,221		$	7,422,105		$	8,268,241		$	(1,344,796	)	$	(1,124,394	)
Net realized gain (loss) on investments and foreign currency related transactions		10,216,561			(67,488,496	)		(77,663,256	)		(262,538,575	)		(167,945,273	)		(664,713,260	)
Net change in unrealized appreciation (depreciation) on investments and translation of assets and liabilities denominated in foreign currencies		6,724,746			(1,367,281	)		403,374,916			(478,207,181	)		245,604,627			(202,143,081	)
Net increase (decrease) in net assets resulting from operations		16,922,768			(68,528,556	)		333,133,765			(732,477,515	)		76,314,558			(867,980,735	)
Undistributed net investment income (loss) included in the price of units issued and redeemed		(13,912	)		(31,377	)		(468,057	)		(692,733	)		205,468			(82,390	)
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income		(237,779	)		(95,040	)		(9,289,108	)		(6,232,539	)		—			—
Return of capital		—			—			—			—			—			—
Net realized gains		—			—			—			—			—			—
Total distributions to shareholders		(237,779	)		(95,040	)		(9,289,108	)		(6,232,539	)		—			—
SHAREHOLDER TRANSACTIONS:
Proceeds from shares sold		94,901,543			221,405,325			29,217,910			340,520,394			184,160,845			490,135,966
Value of shares repurchased		(114,889,264	)		(259,402,068	)		(238,056,609	)		(578,435,173	)		(261,389,443	)		(437,648,405	)
Net income equalization		13,912			31,377			468,057			692,733			(205,468	)		82,390
Net increase (decrease) in net assets resulting from shares transactions		(19,973,809	)		(37,965,366	)		(208,370,642	)		(237,222,046	)		(77,434,066	)		52,569,951
Increase (Decrease) in Net Assets		(3,302,732	)		(106,620,339	)		115,005,958			(976,624,833	)		(914,040	)		(815,493,174	)
NET ASSETS:
Beginning of year		71,048,247			177,668,586			1,220,027,341			2,196,652,174			658,399,648			1,473,892,822
End of year	$	67,745,515		$	71,048,247		$	1,335,033,299		$	1,220,027,341		$	657,485,608		$	658,399,648
Undistributed net investment income (loss) at end of year	$	(5,321	)	$	232,181		$	398,523		$	2,265,526		$	(24,281	)	$	(25,802	)
CHANGES IN SHARES OUTSTANDING:
Shares sold		9,050,000			15,600,000			1,750,000			17,600,000			17,750,000			38,900,000
Shares repurchased		(10,900,000	)		(18,800,000	)		(14,700,000	)		(37,000,000	)		(25,650,000	)		(36,400,000	)
Shares outstanding, beginning of year		7,400,000			10,600,000			86,900,000			106,300,000			72,900,000			70,400,000
Shares outstanding, end of year		5,550,000			7,400,000			73,950,000			86,900,000			65,000,000			72,900,000

Statements of Changes in Net Assets (Continued)

	PowerShares WilderHill Progressive Energy Portfolio
	Year Ended April 30, 2010			Year Ended April 30, 2009
OPERATIONS:
Net investment income	$	333,938		$	308,644
Net realized gain (loss) on investments and foreign currency related transactions		(2,297,784	)		(18,080,576	)
Net change in unrealized appreciation (depreciation) on investments and translation of assets and liabilities denominated in foreign currencies		20,849,396			(15,514,733	)
Net increase (decrease) in net assets resulting from operations		18,885,550			(33,286,665	)
Undistributed net investment income included in the price of units issued and redeemed		11,802			6,067
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income		(347,466	)		(175,935	)
Return of capital		—			—
Net realized gains		—			—
Total distributions to shareholders		(347,466	)		(175,935	)
SHAREHOLDER TRANSACTIONS:
Proceeds from shares sold		4,334,078			38,554,939
Value of shares repurchased		(2,391,138	)		(27,219,587	)
Net income equalization		(11,802	)		(6,067	)
Net increase in net assets resulting from shares transactions		1,931,138			11,329,285
Increase (Decrease) in Net Assets		20,481,024			(22,127,248	)
NET ASSETS:
Beginning of year		39,970,190			62,097,438
End of year	$	60,451,214		$	39,970,190
Undistributed net investment income at end of year	$	119,181		$	132,709
CHANGES IN SHARES OUTSTANDING:
Shares sold		200,000			1,500,000
Shares repurchased		(100,000	)		(1,400,000	)
Shares outstanding, beginning of year		2,300,000			2,200,000
Shares outstanding, end of year		2,400,000			2,300,000

See Notes to Financial Statements.

Financial Highlights

PowerShares Aerospace & Defense Portfolio

	Year Ended April 30,												For the Period October 26, 2005* Through
	2010			2009			2008			2007			April 30, 2006
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	13.38		$	20.93		$	20.19		$	17.37		$	14.91
Net investment income**		0.17			0.16			0.06			0.05			0.03
Net realized and unrealized gain (loss) on investments		5.73			(7.56	)		0.72			2.83			2.45
Total from investment operations		5.90			(7.40	)		0.78			2.88			2.48
Distributions to shareholders from:
Net investment income		(0.21	)		(0.15	)		(0.04	)		(0.06	)		(0.02	)
Return of capital		—			—			—			—	^(a)		—
Total distributions		(0.21	)		(0.15	)		(0.04	)		(0.06	)		(0.02	)
Net asset value at end of period	$	19.07		$	13.38		$	20.93		$	20.19		$	17.37
Share price at end of period***	$	19.07		$	13.37
NET ASSET VALUE, TOTAL RETURN****		44.36	%		(35.46	)%		3.86	%		16.66	%		16.66	%
SHARE PRICE TOTAL RETURN****		44.47	%		(35.48	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	137,338		$	116,429		$	257,495		$	201,886		$	85,136
Ratio to average net assets of:
Expenses, after (Waivers) and/or Recapture		0.66	%		0.66	%		0.66	%		0.66	%		0.68	%†
Expenses, prior to (Waivers) and/or Recapture		0.69	%		0.67	%		0.64	%		0.77	%		0.80	%†
Net investment income, after (Waivers) and/or Recapture		1.08	%		1.01	%		0.27	%		0.28	%		0.31	%†
Portfolio turnover rate ††		17	%		9	%		13	%		16	%		1	%
Undistributed net investment income (loss) included in price of units issued and redeemed**#	$	(0.01	)	$	(0.01	)	$	0.00	^(a)	$	0.00	^(a)		—

PowerShares Cleantech^TM Portfolio

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

* Commencement of Investment Operations.

** Based on average shares outstanding.

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

† Annualized.

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

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

(a) Amount represents less than $0.005.

See Notes to Financial Statements.

Financial Highlights (Continued)

PowerShares DWA Technical Leaders^TM Portfolio

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

PowerShares Global Listed Private Equity Portfolio

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

* Commencement of Investment Operations.

** Based on average shares outstanding.

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

† Annualized.

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

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

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

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

See Notes to Financial Statements.

Financial Highlights (Continued)

PowerShares Golden Dragon Halter USX China Portfolio

	Year Ended April 30,
	2010			2009			2008			2007			2006
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	17.47		$	28.88		$	21.43		$	16.90		$	13.00
Net investment income**		0.13			0.20			0.12			0.20			0.17
Net realized and unrealized gain (loss) on investments		7.63			(11.44	)		7.54			4.54			3.89
Total from investment operations		7.76			(11.24	)		7.66			4.74			4.06
Distributions to shareholders from:
Net investment income		(0.17	)		(0.17	)		(0.20	)		(0.21	)		(0.16	)
Return of capital		(0.03	)		—			(0.01	)		—			—
Total distributions		(0.20	)		(0.17	)		(0.21	)		(0.21	)		(0.16	)
Net asset value at end of period	$	25.03		$	17.47		$	28.88		$	21.43		$	16.90
Share price at end of period***	$	25.11		$	17.48
NET ASSET VALUE, TOTAL RETURN****		44.51	%		(39.06	)%		35.87	%		28.53	%		31.52	%
SHARE PRICE TOTAL RETURN****		44.49	%		(38.92	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	455,523		$	279,490		$	528,483		$	394,320		$	238,330
Ratio to average net assets of:
Expenses, after (Waivers) and/or Recapture		0.70	%		0.69	%		0.69	%		0.70	%		0.71	%
Expenses, prior to (Waivers) and/or Recapture		0.71	%		0.71	%		0.66	%		0.72	%		0.88	%
Net investment income, after (Waivers) and/or Recapture		0.56	%		1.06	%		0.42	%		1.06	%		1.18	%
Portfolio turnover rate †		35	%		20	%		15	%		17	%		21	%
Undistributed net investment income (loss) included in price of units issued and redeemed**#	$	0.02		$	(0.03	)	$	0.03		$	0.01			—

PowerShares Lux Nanotech Portfolio

	Year Ended April 30,												For the Period October 26, 2005* Through
	2010			2009			2008			2007			April 30, 2006
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	7.59		$	14.07		$	17.48		$	19.05		$	15.32
Net investment income (loss)**		(0.00	)^(a)		0.02			(0.03	)		(0.02	)		0.02
Net realized and unrealized gain (loss) on investments		2.76			(6.50	)		(3.38	)		(1.55	)		3.79
Total from investment operations		2.76			(6.48	)		(3.41	)		(1.57	)		3.81
Distributions to shareholders from:
Net investment income		(0.02	)		—			—			—			(0.01	)
Return of capital		0.00	^(a)		—			—			—			(0.07	)
Total distributions		(0.02	)		—			—			—			(0.08	)
Net asset value at end of period	$	10.33		$	7.59		$	14.07		$	17.48		$	19.05
Share price at end of period***	$	10.32		$	7.60
NET ASSET VALUE, TOTAL RETURN****		36.39	%		(46.06	)%		(19.51	)%		(8.24	)%		24.94	%
SHARE PRICE TOTAL RETURN****		36.08	%		(45.79	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	55,290		$	39,484		$	84,428		$	159,052		$	112,416
Ratio to average net assets of:
Expenses, after (Waivers) and/or Recapture		0.70	%		0.70	%		0.70	%		0.71	%		0.73	%††
Expenses, prior to (Waivers) and/or Recapture		0.85	%		0.89	%		0.73	%		0.79	%		0.83	%††
Net investment income (loss), after (Waivers) and/or Recapture		(0.04	)%		0.17	%		(0.17	)%		(0.09	)%		0.17	%††
Portfolio turnover rate †		57	%		50	%		42	%		16	%		6	%
Undistributed net investment income (loss) included in price of units issued and redeemed**#	$	0.00	^(a)	$	0.00	^(a)	$	0.01		$	(0.01	)		—

* Commencement of Investment Operations.

** Based on average shares outstanding.

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

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

†† Annualized.

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

(a) Amount represents less than $0.005.

See Notes to Financial Statements.

Financial Highlights (Continued)

PowerShares NASDAQ-100 BuyWrite Portfolio

	Year Ended April 30, 2010			For the Period June 9, 2008* Through April 30, 2009
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	18.41		$	24.86
Net investment income (loss)**		(0.00	)^(a)		(0.01	)
Net realized and unrealized gain (loss) on investments		5.00			(6.44	)
Total from investment operations		5.00			(6.45	)
Distributions to shareholders from:
Net investment income		(1.12	)		—
Net realized gains		(0.15	)		—
Total distributions		(1.27	)		—
Net asset value at end of period	$	22.14		$	18.41
Share price at end of period***	$	22.17		$	18.43
NET ASSET VALUE, TOTAL RETURN****		27.23	%		(25.95	)%^(b)
SHARE PRICE TOTAL RETURN****		27.28	%		(25.87	)%^(b)
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	11,070		$	5,524
Ratio to average net assets of:
Expenses		0.75	%		0.75	%†
Net investment income (loss)		(0.02	)%		(0.07	)%†
Portfolio turnover rate ††		75	%		65	%
Undistributed net investment income (loss) included in price of units issued and redeemed**#	$	(0.29	)	$	(0.03	)

PowerShares S&P 500 BuyWrite Portfolio

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

* Commencement of Investment Operations.

** Based on average shares outstanding.

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

† Annualized.

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

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

(a) Amount represents less than $0.005.

(b) The net asset value, total return from Fund Inception (June 12, 2008, first day of trading on the exchange) to April 30, 2009 was (23.83)%. The share price total return from Fund Inception to April 30, 2009 was (23.97)%.

See Notes to Financial Statements.

Financial Highlights (Continued)

PowerShares Value Line Industry Rotation Portfolio

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

PowerShares Value Line Timeliness^TM Select Portfolio

	Year Ended April 30,												For the Period December 6, 2005* Through
	2010			2009			2008			2007			April 30, 2006
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	9.60		$	16.76		$	17.59		$	17.09		$	15.52
Net investment income (loss)**		0.00	(a)		0.04			(0.02	)		(0.01	)		(0.02	)
Net realized and unrealized gain (loss) on investments		2.64			(7.19	)		(0.81	)		0.51			1.59
Total from investment operations		2.64			(7.15	)		(0.83	)		0.50			1.57
Distributions to shareholders from:
Net investment income		(0.03	)		(0.01	)		—			—			—
Net asset value at end of period	$	12.21		$	9.60		$	16.76		$	17.59		$	17.09
Share price at end of period***	$	12.21		$	9.60
NET ASSET VALUE, TOTAL RETURN****		27.63	%		(42.66	)%		(4.72	)%		2.93	%		10.12	%
SHARE PRICE TOTAL RETURN****		27.63	%		(42.62	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	67,746		$	71,048		$	177,669		$	272,608		$	182,810
Ratio to average net assets of:
Expenses, after (Waivers) and/or Recapture		0.70	%		0.70	%		0.70	%		0.70	%		0.71	%†
Expenses, prior to (Waivers) and/or Recapture		0.80	%		0.72	%		0.70	%		0.75	%		0.78	%†
Net investment income (loss), after (Waivers) and/or Recapture		(0.03	)%		0.27	%		(0.12	)%		(0.06	)%		(0.30	)%†
Portfolio turnover rate ††		138	%		143	%		101	%		113	%		39	%
Undistributed net investment income (loss) included in price of units issued and redeemed**#	$	(0.00	)^(a)	$	(0.00	)^(a)	$	0.01		$	0.00	^(a)		—

* Commencement of Investment Operations.

** Based on average shares outstanding.

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

† Annualized.

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

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

(a) Amount represents less than $0.005.

See Notes to Financial Statements.

Financial Highlights (Continued)

PowerShares Water Resources Portfolio

	Year Ended April 30,												For the Period December 6, 2005* Through
	2010			2009			2008			2007			April 30, 2006
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	14.04		$	20.66		$	19.20		$	18.25		$	15.32
Net investment income**		0.09			0.08			0.08			0.17			0.02
Net realized and unrealized gain (loss) on investments		4.03			(6.64	)		1.46			0.95			2.94
Total from investment operations		4.12			(6.56	)		1.54			1.12			2.96
Distributions to shareholders from:
Net investment income		(0.11	)		(0.06	)		(0.08	)		(0.17	)		(0.03	)
Net asset value at end of period	$	18.05		$	14.04		$	20.66		$	19.20		$	18.25
Share price at end of period***	$	18.27		$	14.02
NET ASSET VALUE, TOTAL RETURN****		29.48	%		(31.76	)%		8.02	%		6.26	%		19.38	%
SHARE PRICE TOTAL RETURN****		29.67	%		(31.63	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	1,335,033		$	1,220,027		$	2,196,652		$	1,606,782		$	991,208
Ratio to average net assets of:
Expenses, after (Waivers) and/or Recapture		0.64	%		0.64	%		0.64	%		0.66	%		0.67	%†
Expenses, prior to (Waivers) and/or Recapture		0.64	%		0.64	%		0.63	%		0.67	%		0.70	%†
Net investment income, after (Waivers) and/or Recapture		0.57	%		0.49	%		0.39	%		0.96	%		0.40	%†
Portfolio turnover rate ††		20	%		33	%		23	%		27	%		2	%
Undistributed net investment income (loss) included in price of units issued and redeemed**#	$	(0.01	)	$	(0.01	)	$	0.01		$	0.02			—

PowerShares WilderHill Clean Energy Portfolio

	Year Ended April 30,
	2010			2009			2008			2007			2006
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	9.03		$	20.94		$	19.29		$	22.38		$	12.86
Net investment income (loss)**		(0.02	)		(0.02	)		(0.07	)		0.04			(0.07	)
Net realized and unrealized gain (loss) on investments		1.11			(11.89	)		1.72			(3.08	)		9.59
Total from investment operations		1.09			(11.91	)		1.65			(3.04	)		9.52
Distributions to shareholders from:
Net investment income		—			—			—			(0.05	)		—
Return of capital		—			—			—			0.00	^(a)		—
Total distributions		—			—			—			(0.05	)		—
Net asset value at end of period	$	10.12		$	9.03		$	20.94		$	19.29		$	22.38
Share price at end of period***	$	10.22		$	8.99
NET ASSET VALUE, TOTAL RETURN****		12.07	%		(56.88	)%		8.55	%		(13.58	)%		74.03	%
SHARE PRICE TOTAL RETURN****		12.46	%		(57.07	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	657,486		$	658,400		$	1,473,893		$	914,345		$	722,940
Ratio to average net assets of:
Expenses, after (Waivers) and/or Recapture		0.70	%		0.69	%		0.67	%		0.70	%		0.71	%
Expenses, prior to (Waivers) and/or Recapture		0.70	%		0.69	%		0.67	%		0.69	%		0.75	%
Net investment income (loss), after (Waivers) and/or Recapture		(0.18	)%		(0.12	)%		(0.32	)%		0.24	%†††		(0.39	)%
Portfolio turnover rate ††		42	%		41	%		20	%		41	%		6	%
Undistributed net investment income (loss) included in price of units issued and redeemed**#	$	0.00	^(a)	$	(0.00	)^(a)	$	(0.02	)	$	0.01			—

* Commencement of Investment Operations.

** Based on average shares outstanding.

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

† Annualized.

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

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

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

(a) Amount represents less than $0.005.

See Notes to Financial Statements.

Financial Highlights (Continued)

PowerShares WilderHill Progressive Energy Portfolio

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

* Commencement of Investment Operations.

** Based on average shares outstanding.

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

† Annualized.

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

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

(a) Amount represents less than $0.005.

See Notes to Financial Statements.

Notes to Financial Statements

PowerShares Exchange-Traded Fund Trust

April 30, 2010

Note 1. Organization

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

PowerShares Cleantech^TM Portfolio				"Cleantech^TM Portfolio"

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

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

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

PowerShares Lux Nanotech Portfolio				"Lux Nanotech Portfolio"

PowerShares NASDAQ-100 BuyWrite Portfolio				"NASDAQ-100 BuyWrite Portfolio"

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

PowerShares Value Line Industry				"Value Line Industry Rotation Portfolio" Rotation Portfolio

PowerShares Value Line Timeliness^TM				"Value Line Timeliness^TM Select Portfolio" Select Portfolio

PowerShares Water Resources Portfolio				"Water Resources Portfolio"

PowerShares WilderHill Clean Energy Portfolio				"WilderHill Clean Energy Portfolio"

PowerShares WilderHill Progressive				"WilderHill Progressive Energy Portfolio" Energy Portfolio

Each portfolio (the "Fund" and collectively the "Funds") represents a separate series of the Trust. The shares of the Funds are referred to herein as "Shares" or "Fund's Shares." Each Fund's Shares are listed and traded on the NYSE Arca, Inc., except for Shares of the NASDAQ-100 BuyWrite Portfolio which are listed and traded on the NASDAQ Stock Market LLC.

Fund				Index
Aerospace & Defense Portfolio				SPADE^TM Defense Index

Cleantech^TM Portfolio				The Cleantech Index^TM

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

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

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

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

April 30, 2010

Fund				Index
Lux Nanotech Portfolio				Lux Nanotech Index^TM

NASDAQ-100 BuyWrite Portfolio				CBOE NASDAQ-100 BuyWrite Index^TM

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

Value Line Industry Rotation Portfolio				Value Line Industry Rotation Index

Value Line Timeliness^TM Select Portfolio				Value Line Timeliness^TM Select Index

Water Resources Portfolio				Palisades Water Index

WilderHill Clean Energy Portfolio				WilderHill Clean Energy Index

WilderHill Progressive Energy Portfolio				WilderHill Progressive Energy Index

Note 2. Significant Accounting Policies

The preparation of the financial statements in accordance with General Accepted Accounting Principles ("GAAP") in the United States of America requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements, including estimates and assumptions related to taxation. Actual results could differ from these estimates. In addition, the Funds monitor for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.

A. Security Valuation

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

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

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

April 30, 2010

on a particular security and the close of the customary trading session on the NYSE, events occur that are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.

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

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

B. Other Risks

With respect to the Global Listed Private Equity Portfolio, the Fund's use of a representative sampling approach will result in its holding a smaller number of securities than are in its Underlying Index. As a result, an adverse development respecting an issuer of securities held by the Fund could result in a greater decline in NAV than would be the case if the Fund held all of the securities in its Underlying Index. To the extent the assets in the Fund are smaller, these risks will be greater.

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

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

April 30, 2010

C. Federal Income Taxes

D. Investment Income and Investment Transactions

E. Expenses

Each Fund (except for S&P 500 BuyWrite Portfolio and NASDAQ-100 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, any distribution fees or expenses and extraordinary expenses.

The S&P 500 BuyWrite Portfolio and NASDAQ-100 BuyWrite Portfolio have agreed to pay an annual unitary management fee to Invesco PowerShares Capital Management LLC (the "Adviser"). The Adviser has agreed to pay for substantially all expenses of the S&P 500 BuyWrite Portfolio and NASDAQ-100 BuyWrite Portfolio, including the cost of transfer agency, custody, fund administration, legal, audit and other services, except for advisory fees, distribution fees, if any, brokerage expenses, taxes, interest, litigation expenses and other extraordinary expenses.

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

April 30, 2010

F. Dividends and Distributions to Shareholders

G. Equalization

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

H. Option Contracts Written

The S&P 500 BuyWrite Portfolio and NASDAQ-100 BuyWrite Portfolio may engage in certain strategies involving options to manage or minimize the risk of its investments or for investment purposes. A call option gives the purchaser of such option the right to buy, and the writer (the Fund) the obligation to sell, the underlying security at the stated exercise price during the option period. When a Fund writes (sells) call options, the amount of the premium received is recorded as a liability in the Statement of Assets and Liabilities and is subsequently "marked-to-market" to reflect the current value of the option written. The difference between the premium received and the current value of the option is recorded as unrealized appreciation or depreciation. The net change in unrealized appreciation (depreciation) is reported in the Statement of Operations. If a written call option expires, or if the Fund enters into a closing purchase transaction, the Fund realizes a gain (or a loss if the closing purchase transaction exceeds the premium received when the option was written) without regard to any unrealized gain or loss on the underlying security, and the liability related to such option is extinguished. If a written option is exercised, the Fund realizes a gain or loss from the sale of the underlying security and the proceeds of the sale are increased by the premium originally received. The primary risk in writing a call option is market risk; the Fund gives up the opportunity for profit if the market price of the underlying security increases and the option is exercised but will continue to bear the risk of loss should the 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.

Note 3. Derivative Investments

S&P 500 BuyWrite Portfolio and NASDAQ-100 BuyWrite Portfolio have implemented new required disclosures about derivative instruments and hedging activities in accordance with GAAP. GAAP has intended to improve financial reporting about derivative instruments and hedging activities by requiring enhanced disclosures to enable investors to better understand their effects on an entity's financial position and financial performance. The enhanced disclosure has no impact on the results of operations reported in the financial statements.

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

April 30, 2010

Value of Derivative Instruments at Year-End

The table below summarizes the value of the Fund's derivative instruments, detailed by primary risk exposure, held as of April 30, 2010:

	Value
Risk Exposure/Derivative Type	Assets		Liabilities
NASDAQ-100 BuyWrite Portfolio
Equity risk
Options written contracts	$	—	$	(129,963	)
S&P 500 BuyWrite Portfolio
Equity risk
Options written contracts	$	—	$	(1,857,700	)

Effect of Derivative Instruments for the year ended April 30, 2010

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

	Location of Gain (Loss) on Statements of Operations
	Options
NASDAQ-100 BuyWrite Portfolio*
Realized Gain (Loss)
Equity risk	$	(1,393,398	)
Change in Unrealized Appreciation
Equity risk		148,755
Total	$	(1,244,643	)
S&P 500 BuyWrite Portfolio**
Realized Gain (Loss)
Equity risk	$	(15,258,419	)
Change in Unrealized Appreciation
Equity risk		415,292
Total	$	(14,843,127	)

* The average value of outstanding options during the year was $170,637.

** The average value of outstanding options during the year was $2,319,569.

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

April 30, 2010

NASDAQ-100 BuyWrite Portfolio

	Transactions During the Year
	Call Option Contracts
	Number of Contracts			Premiums Received
Beginning of year		52		$	175,051
Written		643			2,198,058
Closed		(585	)		(2,021,386	)
Expired		(46	)		(162,010	)
End of year		64		$	189,713

	Open Options Written at Year End
	Contract Month	Strike Price		Number of Contracts		Premiums Received		Value		Unrealized Appreciation
Call Option Mini-NASDAQ-100 Index	May-10	$	202.5		9	$	2,742	$	2,088	$	654
Call Option NASDAQ-100 Index	May-10		2,025		55		186,971		127,875		59,096
					64	$	189,713	$	129,963	$	59,750

S&P 500 BuyWrite Portfolio

	Transactions During the Year
	Call Option Contracts
	Number of Contracts			Premiums Received
Beginning of year		993		$	2,957,953
Written		14,978			31,663,808
Closed		(13,094	)		(29,308,573	)
Expired		(1,448	)		(2,728,588	)
End of year		1,429		$	2,584,600

	Open Options Written at Year End
	Contract Month	Strike Price		Number of Contracts		Premiums Received		Value		Unrealized Appreciation
Call Option S&P 500 Index	May-10	$	1,200		1,429	$	2,584,600	$	1,857,700	$	726,900

Note 4. Investment Advisory Agreement and Other Agreements

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

April 30, 2010

average daily net assets. The S&P 500 BuyWrite Portfolio and NASDAQ-100 BuyWrite Portfolio each have agreed to pay the Adviser an annual unitary management fee of 0.75% of its average daily net assets and the Adviser has agreed to pay for substantially all expenses of S&P 500 BuyWrite Portfolio and NASDAQ-100 BuyWrite Portfolio, including the cost of transfer agency, custody, fund administration, legal, audit and other services, except for advisory fees and distribution fees, if any, brokerage expenses, taxes, interest, litigation expenses and other extraordinary expenses.

The Adviser has entered into an Amended and Restated Excess Expense Agreement (the "Excess Expense Agreement") with the Trust, pursuant to which the Adviser has agreed to waive fees and/or pay Fund expenses to the extent necessary to prevent the operating expenses of each Fund (except for S&P 500 BuyWrite Portfolio and NASDAQ-100 BuyWrite Portfolio) (excluding interest expense, brokerage commissions and other trading expenses, sub-licensing fees, offering costs, taxes and extraordinary expenses) from exceeding 0.60% of the Fund's average daily net assets per year (the "Expense Cap"), at least until August 31, 2011. Offering costs excluded from the Expense Cap are: (a) initial legal fees pertaining to the Funds' Shares offered for sale; (b) initial Securities and Exchange Commission and state registration fees; and (c) initial fees paid to be listed on an exchange.

The Excess Expense Agreement does not apply to the S&P 500 BuyWrite Portfolio and NASDAQ-100 BuyWrite Portfolio.

The amounts available for potential future recapture by the Adviser under the Excess Expense Agreement and the expiration schedule at April 30, 2010 are as follows:

	Total Potential		Potential Recapture Amounts Expiring
	Recapture Amounts		04/30/11		04/30/12		04/30/13
Aerospace & Defense Portfolio	$	87,595	$	11,515	$	39,737	$	36,343
Cleantech^TM Portfolio		184,155		52,043		71,541		60,571
DWA Technical Leaders^TM Portfolio		43,218		—		—		43,218
Global Listed Private Equity Portfolio		123,409		24,401		68,342		30,666
Golden Dragon Halter USX China Portfolio		169,214		—		96,968		72,246
Lux Nanotech Portfolio		236,672		40,537		115,193		80,942
Value Line Industry Rotation Portfolio		281,127		92,038		91,574		97,515
Value Line Timeliness^TM Select Portfolio		134,747		23,833		43,024		67,890
WilderHill Clean Energy Portfolio		118,701		—		24,724		93,977
WilderHill Progressive Energy Portfolio		232,843		79,132		78,641		75,070

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

April 30, 2010

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

Fund				Licensor
Aerospace & Defense Portfolio				International Space Business Council

Cleantech^TM Portfolio				Cleantech Capital Indices LLC

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

Global Listed Private Equity Portfolio				Red Rocks Capital Partners LLC

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

Lux Nanotech Porfolio				Lux Research, Inc.

NASDAQ-100 BuyWrite Portfolio				NASDAQ OMX Group, Inc.

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

Value Line Industry Rotation Portfolio				Value Line Publishing, Inc.

Value Line Timeliness^TM Select Portfolio				Value Line Publishing, Inc.

Water Resources Portfolio				Hydrogen Ventures

WilderHill Clean Energy Portfolio				WilderShares, LLC

WilderHill Progressive Energy Portfolio				WilderShares, LLC

Each Underlying Index name trademark is owned by the respective Licensors. These trademarks have been licensed to the Adviser for use with the Funds. The Funds are not sponsored, endorsed, sold or promoted by the Licensors and the Licensors make no representation regarding the advisability of investing in any of these Funds. The Trust has entered into a sub-licensing agreement under which the Funds (other than the NASDAQ-100 BuyWrite Portfolio and S&P 500 BuyWrite Portfolio) are required to pay the sub-licensing fees which are shown on the Statements of Operations.

Note 5. Additional Valuation Information

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

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

April 30, 2010

	Investment in Securities
	Level 1		Level 2		Level 3		Total
Aerospace & Defense Portfolio
Equity Securities	$	137,394,296	$	—	$	—	$	137,394,296
Money Market Fund		53,015		—		—		53,015
Total Investments		137,447,311		—		—		137,447,311
Cleantech^TM Portfolio
Equity Securities		97,926,345		62,062,771		—		159,989,116
Money Market Fund		49,854		—		—		49,854
Total Investments		97,976,199		62,062,771		—		160,038,970
DWA Technical Leaders^TM Portfolio
Equity Securities		159,369,090		—		—		159,369,090
Money Market Fund		156,526		—		—		156,526
Total Investments		159,525,616		—		—		159,525,616
Global Listed Private Equity Portfolio
Equity Securities		94,191,291		118,569,977		—		212,761,268
Money Market Fund		135,318		—		—		135,318
Total Investments		94,326,609		118,569,977		—		212,896,586
Golden Dragon Halter USX China Portfolio
Equity Securities		455,454,548		—		—		455,454,548
Lux Nanotech Portfolio
Equity Securities		55,383,929		—		—		55,383,929
Money Market Fund		11,900		—		—		11,900
Total Investments		55,395,829		—		—		55,395,829
NASDAQ-100 BuyWrite Portfolio
Equity Securities		11,201,986		—		—		11,201,986
Money Market Fund		3,747		—		—		3,747
Other Investments*		59,750		—		—		59,750
Total Investments		11,265,483		—		—		11,265,483

* Other investments include written options which are included at unrealized appreciation.

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

April 30, 2010

	Investment in Securities
	Level 1		Level 2		Level 3		Total
S&P 500 BuyWrite Portfolio
Equity Securities	$	169,678,793	$	—	$	—	$	169,678,793
Other Investments*		726,900		—		—		726,900
Total Investments		170,405,693		—		—		170,405,693
Value Line Industry Rotation Portfolio
Equity Securities		19,299,463		—		—		19,299,463
Money Market Fund		25,565		—		—		25,565
Total Investments		19,325,028		—		—		19,325,028
Value Line Timeliness^TM Select Portfolio
Equity Securities		67,759,548		—		—		67,759,548
Money Market Fund		80,038		—		—		80,038
Total Investments		67,839,586		—		—		67,839,586
Water Resources Portfolio
Equity Securities		1,335,089,516		—		—		1,335,089,516
Money Market Fund		12,974		—		—		12,974
Total Investments		1,335,102,490		—		—		1,335,102,490
WilderHill Clean Energy Portfolio
Equity Securities		657,608,172		—		—		657,608,172
Money Market Fund		166,428		—		—		166,428
Total Investments		657,774,600		—		—		657,774,600
WilderHill Progressive Energy Portfolio
Equity Securities		60,391,698		—		—		60,391,698
Money Market Fund		60,796		—		—		60,796
Total Investments		60,452,494		—		—		60,452,494

* Other investments include written options which are included at unrealized appreciation.

Note 6. Investments in Affiliates

The 1940 Act defines "affiliate" to include issuers of which a fund holds 5% or more of the outstanding voting securities. The following is a summary of the transactions with affiliates for the fiscal year ended April 30, 2010.

Water Resources Portfolio

	Value April 30, 2009		Purchase at Cost		Proceeds from Sales			Change in Unrealized Appreciation (Depreciation)		Realized Gain (Loss)			Value April 30, 2010		Dividend Income
Ameron International Corp.	$	46,503,537	$	15,647,850	$	(12,686,660	)	$	12,772,331	$	(4,650,852	)	$	57,586,206	$	994,892
Badger Meter, Inc.		51,853,188		2,146,729		(1,432,695	)		3,166,209		39,371			55,772,802		627,076
Consolidated Water Co. Ltd. (Cayman Islands)		17,514,975		7,397,854		(7,738,439	)		3,504,591		(2,159,716	)		18,519,265		329,663

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

April 30, 2010

	Value April 30, 2009		Purchase at Cost		Proceeds from Sales			Change in Unrealized Appreciation (Depreciation)			Realized Gain (Loss)			Value April 30, 2010		Dividend Income
Franklin Electric Co., Inc.	$	36,000,603	$	6,715,678	$	(11,397,982	)	$	18,449,253		$	(2,212,258	)	$	47,555,294	$	757,684
Gorman-Rupp Co. (The)		31,992,579		1,153,730		(1,436,110	)		10,362,675			(463,253	)		41,609,621		614,388
Layne Christensen Co.		36,214,914		9,683,852		(18,043,598	)		14,146,137			(2,978,836	)		39,022,469		—
Lindsay Corp.		43,045,121		1,930,737		(1,315,033	)		230,156			(1,155,073	)		42,735,908		349,234
Mueller Water Products, Inc., Class A		43,547,026		6,087,504		(17,502,101	)		28,534,676			(14,273,037	)		46,394,068		642,908
Northwest Pipe Co.		31,492,824		854,559		(849,753	)		(11,172,366	)		(273,488	)		20,051,776		—
Total Investments in Affiliates	$	338,164,767	$	51,618,493	$	(72,402,371	)	$	79,993,662		$	(28,127,142	)	$	369,247,409	$	4,315,845

WilderHill Clean Energy Portfolio

	Value April 30, 2009		Purchase at Cost		Proceeds from Sales			Change in Unrealized Appreciation (Depreciation)			Realized Gain (Loss)			Value April 30, 2010		Dividend Income
Advanced Battery Technologies, Inc.	$	3,551,765	$	17,065,064	$	(7,210,351	)	$	170,746		$	(737,110	)	$	12,840,114	$	—
Amerigon, Inc.		4,732,762		9,100,324		(4,069,259	)		4,842,312			(3,214,384	)		11,391,755		—
Ballard Power Systems, Inc. (Canada)		4,355,184		14,510,242		(5,993,854	)		1,204,466			(4,112,353	)		9,963,685		—
Comverge, Inc.		3,126,024		19,059,000		(6,987,624	)		691,108			(1,084,796	)		14,803,712		—
FuelCell Energy, Inc.		3,306,058		22,711,334		(8,943,739	)		(71,116	)		(4,900,642	)		12,101,895		—
Total Investments in Affiliates	$	19,071,793	$	82,445,964	$	(33,204,827	)	$	6,837,516		$	(14,049,285	)	$	61,101,161	$	—

S&P 500 BuyWrite Portfolio

				Value April 30, 2009				Purchase at Cost				Proceeds from Sales				Change in Unrealized Appreciation				Realized Gain (Loss)				Value April 30, 2010				Dividend Income
Invesco Ltd.				$	63,782			$	75,315			$	(25,453	)		$	46,258			$	(3,846	)		$	156,056			$	2,323

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, 2010 and 2009:

	2010						2009
	Ordinary Income		Return of Capital		Long-Term Capital Gains		Ordinary Income		Return of Capital
Aerospace & Defense Portfolio	$	1,645,392	$	—	$	—	$	1,446,628	$	—
Cleantech^TM Portfolio		223,251		75,171		—		—		—
DWA Technical Leaders^TM Portfolio		843,823		—		—		486,080		—
Global Listed Private Equity Portfolio		4,710,562		—		—		6,364,696		—

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

April 30, 2010

	2010						2009
	Ordinary Income		Return of Capital		Long-Term Capital Gains		Ordinary Income		Return of Capital
Golden Dragon Halter USX China Portfolio	$	3,271,139	$	501,022	$	—	$	2,867,142	$	—
Lux Nanotech Portfolio		101,214		16		—		—		—
NASDAQ-100 BuyWrite Portfolio		447,704		—		58,556		—		—
S&P 500 BuyWrite Portfolio		1,778,095		—		—		887,380		—
Value Line Industry Rotation Portfolio		145,806		—		—		100,862		—
Value Line Timeliness^TM Select Portfolio		237,779		—		—		95,040		—
Water Resources Portfolio		9,289,108		—		—		6,232,539		—
WilderHill Clean Energy Portfolio		—		—		—		—		—
WilderHill Progressive Energy Portfolio		347,466		—		—		175,935		—

Tax Components of Net Assets at Fiscal Year-End:

	Undistributed Ordinary Income		Temporary Book/Tax Differences			Net Unrealized Appreciation (Depreciation)			Capital Loss Carryforward			Post-October* Deferrals			Shares of Beneficial Interest		Total Net Assets
Aerospace & Defense Portfolio	$	132,878	$	(6,854	)	$	(23,070,118	)	$	(16,378,675	)	$	(8,326,569	)	$	184,986,888	$	137,337,550
Cleantech^TM Portfolio		—		(5,087	)		(9,374,325	)		(40,698,940	)		(1,157,255	)		211,256,759		160,021,152
DWA Technical Leaders^TM Portfolio		127,706		(7,428	)		33,102,456			(158,038,110	)		(2,510,127	)		286,696,813		159,371,310
Global Listed Private Equity Portfolio		2,712,583		(4,820	)		(539,264	)		(58,739,549	)		(3,193,506	)		271,644,014		211,879,458
Golden Dragon Halter USX China Portfolio		—		(11,976	)		(39,467,920	)		(102,291,315	)		(24,398,747	)		621,693,245		455,523,287
Lux Nanotech Portfolio		—		(4,088	)		(10,220,715	)		(46,849,632	)		(4,681,936	)		117,046,442		55,290,071
NASDAQ-100 BuyWrite Portfolio		908,249		—			—			—			(429	)		10,162,383		11,070,203
S&P 500 BuyWrite Portfolio		9,302,848		—			—			—			—			158,536,980		167,839,828
Value Line Industry Rotation Portfolio		4,738		(3,322	)		2,080,132			(27,446,081	)		(849,999	)		45,504,622		19,290,090
Value Line Timeliness^TM Select Portfolio		—		(5,321	)		8,618,248			(129,450,524	)		(4,338,261	)		192,921,373		67,745,515
Water Resources Portfolio		437,557		(39,034	)		7,650,863			(374,586,162	)		(16,984,854	)		1,718,554,929		1,335,033,299
WilderHill Clean Energy Portfolio		—		(24,281	)		(175,168,689	)		(858,709,990	)		(146,292,554	)		1,837,681,122		657,485,608
WilderHill Progressive Energy Portfolio		122,857		(3,676	)		5,834,909			(20,933,146	)		(123,602	)		75,553,872		60,451,214

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

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

April 30, 2010

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

The following Funds have capital loss carryforward amounts as of April 30, 2010, which expire on April 30 of each year listed below:

	2014		2015		2016		2017		2018		Total*
Aerospace & Defense Portfolio	$	—	$	104,662	$	2,374,303	$	7,470,897	$	6,428,813	$	16,378,675
Cleantech^TM Portfolio		—		—		1,171,839		14,341,075		25,186,026		40,698,940
DWA Technical Leaders^TM Portfolio		—		—		5,046,566		92,771,702		60,219,842		158,038,110
Global Listed Private Equity Portfolio		—		—		4,388,498		7,687,052		46,663,999		58,739,549
Golden Dragon Halter USX China Portfolio		1,018,146		3,128,677		1,235,904		22,836,421		74,072,167		102,291,315
Lux Nanotech Portfolio		—		3,986,980		793,005		27,406,131		14,663,516		46,849,632
NASDAQ-100 BuyWrite Portfolio**		—		—		—		—		—		—
S&P 500 BuyWrite Portfolio***		—		—		—		—		—		—
Value Line Industry Rotation Portfolio		—		—		3,798,072		6,546,039		17,101,970		27,446,081
Value Line Timeliness^TM Select Portfolio		—		28,753,751		21,013,690		37,241,965		42,441,118		129,450,524
Water Resources Portfolio		—		11,876,489		3,553,481		93,208,162		265,948,030		374,586,162
WilderHill Clean Energy Portfolio		2,098,368		89,533,576		44,707,703		261,712,498		460,657,845		858,709,990
WilderHill Progressive Energy Portfolio		—		—		179,432		8,319,827		12,433,887		20,933,146

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

** During the fiscal year ended April 30, 2010, the NASDAQ-100 BuyWrite Portfolio utilized capital loss carryforwards of $406,407 to offset realized gains.

*** During the fiscal year ended April 30, 2010, the S&P 500 BuyWrite Portfolio utilized capital loss carryforwards of $10,526,359 to offset realized gains.

Note 8. Investment Transactions

	Purchases		Sales
Aerospace & Defense Portfolio	$	21,915,605	$	22,202,398
Cleantech^TM Portfolio		42,597,165		42,789,523
DWA Technical Leaders^TM Portfolio		67,510,978		69,000,303
Global Listed Private Equity Portfolio		206,687,480		175,321,975
Golden Dragon Halter USX China Portfolio		145,090,984		146,263,718
Lux Nanotech Portfolio		30,950,098		29,890,294
NASDAQ-100 BuyWrite Portfolio		6,529,698		6,396,359
S&P 500 BuyWrite Portfolio		66,473,471		70,754,767
Value Line Industry Rotation Portfolio		31,577,689		31,823,652
Value Line Timeliness^TM Select Portfolio		94,547,843		94,638,702

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

April 30, 2010

	Purchases		Sales
Water Resources Portfolio	$	256,587,311	$	296,279,765
WilderHill Clean Energy Portfolio		300,103,130		303,801,376
WilderHill Progressive Energy Portfolio		27,053,559		26,944,748

For the fiscal year ended April 30, 2010, in-kind transactions associated with creations and redemptions were as follows:

	Securities Received		Securities Delivered
Aerospace & Defense Portfolio	$	13,560,618	$	37,127,342
Cleantech^TM Portfolio		24,105,554		9,608,398
DWA Technical Leaders^TM Portfolio		154,607,322		183,481,225
Global Listed Private Equity Portfolio		132,601,326		60,155,005
Golden Dragon Halter USX China Portfolio		142,858,056		95,043,737
Lux Nanotech Portfolio		7,394,652		7,119,568
NASDAQ-100 BuyWrite Portfolio		2,214,512		—
S&P 500 BuyWrite Portfolio		52,081,102		2,164,823
Value Line Industry Rotation Portfolio		46,070,232		60,307,750
Value Line Timeliness^TM Select Portfolio		97,039,421		117,001,892
Water Resources Portfolio		23,671,145		194,514,015
WilderHill Clean Energy Portfolio		186,781,895		261,579,857
WilderHill Progressive Energy Portfolio		4,320,602		2,388,675

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

At April 30, 2010, the aggregate cost and the net unrealized appreciation (depreciation) of investments for tax purposes were as follows:

	Cost		Net Unrealized Appreciation (Depreciation)			Gross Unrealized Appreciation		Gross Unrealized (Depreciation)
Aerospace & Defense Portfolio	$	160,517,429	$	(23,070,118	)	$	1,488,491	$	(24,558,609	)
Cleantech^TM Portfolio		169,409,218		(9,370,248	)		15,154,578		(24,524,826	)
DWA Technical Leaders^TM Portfolio		126,423,160		33,102,456			34,504,139		(1,401,683	)
Global Listed Private Equity Portfolio		213,434,005		(537,419	)		11,367,723		(11,905,142	)
Golden Dragon Halter USX China Portfolio		494,922,468		(39,467,920	)		54,914,941		(94,382,861	)
Lux Nanotech Portfolio		65,616,544		(10,220,715	)		4,563,718		(14,784,433	)
NASDAQ-100 BuyWrite Portfolio		11,265,483		—			—		—
S&P 500 BuyWrite Portfolio		170,405,693		—			—		—
Value Line Industry Rotation Portfolio		17,244,896		2,080,132			2,393,872		(313,740	)
Value Line Timeliness^TM Select Portfolio		59,221,338		8,618,248			9,487,580		(869,332	)

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

April 30, 2010

	Cost		Net Unrealized Appreciation (Depreciation)			Gross Unrealized Appreciation		Gross Unrealized (Depreciation)
Water Resources Portfolio	$	1,327,451,627	$	7,650,863		$	104,889,901	$	(97,239,038	)
WilderHill Clean Energy Portfolio		832,943,289		(175,168,689	)		58,126,206		(233,294,895	)
WilderHill Progressive Energy Portfolio		54,617,585		5,834,909			11,156,858		(5,321,949	)

Note 9. Reclassification of Permanent Differences

	Undistributed Net Investment Income (Loss)			Undistributed Net Realized Gain (Loss)			Shares of Beneficial Interest
Aerospace & Defense Portfolio	$	44,617		$	3,639,381		$	(3,683,998	)
Cleantech^TM Portfolio		94,239			(1,780,366	)		1,686,127
DWA Technical Leaders^TM Portfolio		137,660			(24,331,396	)		24,193,736
Global Listed Private Equity Portfolio		(4,955,162	)		12,697,973			(7,742,811	)
Golden Dragon Halter USX China Portfolio		84,816			(24,382,499	)		24,297,683
Lux Nanotech Portfolio		17,653			140,326			(157,979	)
NASDAQ-100 BuyWrite Portfolio		564,505			(449,378	)		(115,127	)
S&P 500 BuyWrite Portfolio		4,975			—			(4,975	)
Value Line Industry Rotation Portfolio		10,906			(8,741,312	)		8,730,406
Value Line Timeliness^TM Select Portfolio		32,728			(18,263,267	)		18,230,539
Water Resources Portfolio		468,057			(29,301,615	)		28,833,558
WilderHill Clean Energy Portfolio		1,140,849			(17,043,760	)		15,902,911
WilderHill Progressive Energy Portfolio		(11,802	)		(853,993	)		865,795

Note 10. Trustees' Fees

The Funds compensate each Trustee who is not an employee of the Adviser or its affiliates. With respect to S&P 500 BuyWrite Portfolio and NASDAQ-100 BuyWrite Portfolio, the Adviser, as result of the unitary management fee, pays for such compensation. The "Interested" Trustees of the Trust do not receive any Trustees' fees.

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

April 30, 2010

Note 11. Capital

Note 12. Indemnifications

Note 13. Subsequent Events

The Board of Trustees of the Trust approved a change to the name and the Underlying Index for the PowerShares Value Line Industry Rotation Portfolio (the "Fund"), effective June 30, 2010. The Fund's name will be changed to the PowerShares Morningstar StockInvestor Core Portfolio and the Fund will amend its current investment objective to seek investment results that correspond (before fees and expenses) generally to the price and yield performance of an index called the Morningstar StockInvestor Core Index. In addition, the Board of Trustees approved an amendment to the Expense Agreement to reduce the Expense Cap from 0.60% to 0.50%.

The Board of Trustees of the Trust approved a change to the name and the Underlying Index for the PowerShares Value Line Timeliness^TM Select Portfolio (the "Fund"), effective June 30, 2010. The Fund's name will be changed to the PowerShares S&P 500 High Quality Portfolio and the Fund will amend its current investment objective to seek investment results that correspond (before fees and expenses) generally to the price and yield performance of an index called the S&P 500 High Quality Rankings Index. In addition, the Board of Trustees approved an amendment to the Expense Agreement to reduce the Expense Cap from 0.60% to 0.50%.

Report of Independent Registered Public Accounting Firm

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

/s/ PricewaterhouseCoopers LLP
New York, New York
June 28, 2010

Tax Information

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

Each Fund designates the following amounts or, if subsequently determined to be different, the maximum amount allowable for its fiscal year ended April 30, 2010:

Federal Income Tax Information

	Qualified dividend income*			Corporate dividends- received deduction*
Aerospace & Defense Portfolio		100	%		100	%
Cleantech^TM Portfolio		100	%		100	%
DWA Technical Leaders^TM Portfolio		100	%		100	%
Global Listed Private Equity Portfolio		87	%		65	%
Golden Dragon Halter USX China Portfolio		100	%		0	%
Lux Nanotech Portfolio		100	%		100	%
NASDAQ-100 BuyWrite Portfolio		0	%		0	%
S&P 500 BuyWrite Portfolio		0	%		0	%
Value Line Industry Rotation Portfolio		100	%		100	%
Value Line Timeliness^TM Select Portfolio		100	%		100	%
Water Resources Portfolio		100	%		100	%
WilderHill Clean Energy Portfolio		0	%		0	%
WilderHill Progressive Energy Portfolio		100	%		64	%

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

Proxy Results

A Special Meeting of Shareholders was held on March 22, 2010 to elect seven individuals to the Board of Trustees of PowerShares Exchange-Traded Fund Trust.

The results of the voting of the above matter were as follows:

Trustees	Votes For		Withheld/ Abstentions*
Ronn R. Bagge		426,624,761		8,241,402
Todd J. Barre		426,876,044		7,990,119
H. Bruce Bond		426,681,223		8,184,940
Kevin M. Carome		425,386,415		9,479,748
Marc M. Kole		426,529,715		8,336,448
Philip M. Nussbaum		426,531,618		8,334,545
Donald H. Wilson		426,691,769		8,174,394

* Includes Non-Votes.

Trustees and Officers

The Trustees and officers information is current as of April 30, 2010.

Name, Address and Age of
Independent Trustees

Position(s)
Held with Trust

Term of
Office
and
Length of
Time
Served*

Principal
Occupation(s) During
Past 5 Years

Number of
Portfolios
in Fund
Complex
Overseen by
Independent
Trustees

Other Directorships Held
by Independent Trustees

Ronn R. Bagge
(52)
YQA Capital Management LLC
1755 S. Naperville Rd.,
Suite 100
Wheaton, IL 60187

Trustee

Since 2003

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

111

None

Todd J. Barre
(52)
c/o Invesco PowerShares Capital Management LLC
301 West Roosevelt Road
Wheaton, IL 60187

Trustee

Since 2010

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

111

None

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

Trustees and Officers (Continued)

Name, Address and Age of
Independent Trustees

Position(s)
Held with Trust

Term of
Office
and
Length of
Time
Served*

Principal
Occupation(s) During
Past 5 Years

Number of
Portfolios
in Fund
Complex
Overseen by
Independent
Trustees

Other Directorships Held
by Independent Trustees

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

Trustee

Since 2006

111

None

Philip M. Nussbaum
(48)
c/o Invesco PowerShares Capital Management LLC
301 West Roosevelt Road
Wheaton, IL 60187

Trustee

Since 2003

111

None

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

Trustees and Officers (Continued)

Name, Address and Age of
Independent Trustees

Position(s)
Held with Trust

Term of
Office
and
Length of
Time
Served*

Principal
Occupation(s) During
Past 5 Years

Number of
Portfolios
in Fund
Complex
Overseen by
Independent
Trustees

Other Directorships Held
by Independent Trustees

Donald H. Wilson
(50)
c/o Invesco PowerShares Capital Management LLC
301 West Roosevelt Road
Wheaton, IL 60187

Trustee

Since 2006

111

None

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

Trustees and Officers (Continued)

Name, Address and Age of
Interested Trustees

Position(s)
Held with Trust

Term of
Office
and
Length of
Time
Served*

Principal
Occupation(s) During
Past 5 Years

Number of
Portfolios
in Fund
Complex
Overseen by
Interested
Trustee

Other Directorships Held
by Interested Trustee

H. Bruce Bond
(46)
Invesco PowerShares Capital Management LLC
301 West Roosevelt Road
Wheaton, IL 60187

Chairman of the Board and Trustee

Since 2003

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

111

None

Kevin M. Carome
(53)
Invesco Ltd.
Two Peachtree Pointe
1555 Peachtree St., N.E.,
Suite 1800
Atlanta, GA 30309

Trustee

Since 2010

111

None

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

Trustees and Officers (Continued)

Name, Address and
Age of Executive Officer

Position(s)
Held
with Trust

Length of
Time
Served*

Principal Occupation(s) During Past 5 Years

Andrew Schlossberg
(35)
Invesco Management Group, Inc.
11 Greenway Plaza
Suite 100
Houston, Texas 77046

President

Since 2009

Bruce T. Duncan
(55)
Invesco PowerShares Capital Management LLC
301 West Roosevelt Road
Wheaton, IL 60187

Treasurer and Secretary

Treasurer since 2006; Secretary since 2008

Benjamin Fulton
(48)
Invesco PowerShares Capital Management LLC
301 West Roosevelt Road
Wheaton, IL 60187

Vice President

Since 2009

Peter Hubbard
(28)
Invesco PowerShares Capital Management LLC
301 West Roosevelt Road
Wheaton, IL 60187

Vice President

Since 2009

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

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

100

Trustees and Officers (Continued)

Name, Address and
Age of Executive Officer

Position(s)
Held
with Trust

Length of
Time
Served*

Principal Occupation(s) During Past 5 Years

David Warren
(52)
Invesco Trimark Ltd.
5140 Yonge Street
Suite 900
Toronto,
Ontario M2N 6X7

Vice President

Since 2009

Todd Spillane
(51)
Invesco PowerShares Capital Management LLC
11 Greenway Plaza
Suite 100
Houston, Texas 77046

Chief Compliance Officer

Since 2010

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

Availability of Additional Information About the Trustees

The Statement of Additional Information includes additional information about the Trustees and is available, without charge, upon request at 800.337.4246.

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

101

Board Considerations Regarding Continuation of Investment Advisory Agreement

PowerShares Dynamic Market Portfolio

PowerShares Dynamic OTC Portfolio

PowerShares Golden Dragon Halter USX China Portfolio

PowerShares High Yield Equity Dividend Achievers^TM Portfolio

PowerShares WilderHill Clean Energy Portfolio

PowerShares Dynamic Large Cap Growth Portfolio

PowerShares Dynamic Large Cap Value Portfolio

PowerShares Dynamic Mid Cap Growth Portfolio

PowerShares Dynamic Mid Cap Value Portfolio

PowerShares Dynamic Small Cap Growth Portfolio

PowerShares Dynamic Small Cap Value Portfolio

PowerShares Dynamic Biotechnology & Genome Portfolio

PowerShares Dynamic Food & Beverage Portfolio

PowerShares Dynamic Leisure and Entertainment Portfolio

PowerShares Dynamic Media Portfolio

PowerShares Dynamic Networking Portfolio

PowerShares Dynamic Pharmaceuticals Portfolio

PowerShares Dynamic Semiconductors Portfolio

PowerShares Dynamic Software Portfolio

PowerShares Zacks Micro Cap Portfolio

PowerShares Aerospace & Defense Portfolio

PowerShares Dynamic Telecommunications & Wireless Portfolio

PowerShares Value Line Timeliness Select Portfolio

PowerShares Dividend Achievers^TM Portfolio

PowerShares International Dividend Achievers^TM Portfolio

PowerShares Zacks Small Cap Portfolio

PowerShares Dynamic Building and Construction Portfolio

PowerShares Dynamic Energy Exploration and Production Portfolio

PowerShares Dynamic Insurance Portfolio

PowerShares Dynamic Oil and Gas Services Portfolio

PowerShares Dynamic Retail Portfolio

PowerShares Dynamic Utilities Portfolio

PowerShares Lux Nanotech Portfolio

PowerShares FTSE RAFI US 1000 Portfolio

PowerShares FTSE RAFI US 1500 Small-Mid Portfolio

PowerShares Water Resources Portfolio

PowerShares Dynamic Energy Sector Portfolio

PowerShares Dynamic Financial Sector Portfolio

PowerShares Dynamic Healthcare Sector Portfolio

PowerShares Dynamic Industrials Sector Portfolio

PowerShares Dynamic Large Cap Portfolio

PowerShares Dynamic MagniQuant Portfolio

PowerShares Dynamic Mid Cap Portfolio

PowerShares Dynamic Small Cap Portfolio

PowerShares Dynamic Technology Sector Portfolio

PowerShares Buyback Achievers^TM Portfolio

PowerShares Cleantech Portfolio

PowerShares Dynamic Banking Portfolio

PowerShares Dynamic Basic Materials Sector Portfolio

PowerShares Dynamic Consumer Discretionary Sector Portfolio

PowerShares Dynamic Consumer Staples Sector Portfolio

PowerShares Dynamic Healthcare Services Portfolio

PowerShares Financial Preferred Portfolio

PowerShares Global Listed Private Equity Portfolio

PowerShares DWA Technical Leaders Portfolio

PowerShares Value Line Industry Rotation Portfolio

PowerShares WilderHill Progressive Energy Portfolio

102

Board Considerations Regarding Continuation of Investment Advisory Agreement (Continued)

103

Board Considerations Regarding Continuation of Investment Advisory Agreement (Continued)

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

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

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

• higher than the median advisory fee of its ETF peer funds (except for the advisory fee of each of PowerShares Financial Preferred Portfolio, PowerShares Golden Dragon Halter USX China Portfolio and PowerShares International Dividend Achievers^TM Portfolio, which was lower than the median advisory fee of its ETF peer funds); and

• higher than the median advisory fee of its open-end index peer funds (except for the advisory fee of each of PowerShares DWA Technical Leaders Portfolio, PowerShares Dynamic Banking Portfolio, PowerShares Dynamic Financial Sector Portfolio, PowerShares Dynamic Insurance Portfolio, PowerShares Dynamic Mid Cap Growth Portfolio, PowerShares Dynamic Mid Cap Value Portfolio, PowerShares Dynamic OTC Portfolio, PowerShares Financial Preferred Portfolio, PowerShares FTSE RAFI US 1500 Small-Mid Portfolio, PowerShares Golden Dragon Halter USX China Portfolio, PowerShares International Dividend Achievers^TM Portfolio, PowerShares Value Line Industry Rotation Portfolio and PowerShares Value Line Timeliness Select Portfolio, which was equal to or lower than the median advisory fee of its open-end index peer funds, and there was no comparable data for PowerShares Dynamic Basic Materials Sector Portfolio); but

104

Board Considerations Regarding Continuation of Investment Advisory Agreement (Continued)

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

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

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

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.

105

Board Considerations Regarding Continuation of Investment Advisory Agreement (Continued)

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.

106

Board Considerations Regarding Continuation of Investment Advisory Agreement

At a meeting held on April 15, 2010, the Board of Trustees of the PowerShares Exchange-Traded Fund Trust (the "Trust"), including the Independent Trustees, unanimously approved the continuation of the Investment Advisory Agreement between Invesco PowerShares Capital Management LLC (the "Adviser") and the Trust for the following five series (each, a "Fund" and collectively, the "Funds"):

PowerShares FTSE NASDAQ Small Cap Portfolio

PowerShares NASDAQ Internet Portfolio

PowerShares NASDAQ-100 BuyWrite Portfolio

PowerShares NXQ Portfolio

PowerShares S&P 500 BuyWrite Portfolio

Nature, Extent and Quality of Services. In evaluating the nature, extent and quality of the Adviser's services, the Trustees reviewed information concerning the functions performed by the Adviser for the Funds, information describing the Adviser's current organization and projected staffing, including operations assistance provided by the Adviser's parent organization, Invesco Ltd., and the background and experience of the persons responsible for the day-to-day management of the Funds. The Trustees reviewed matters related to the Adviser's oversight of the execution of portfolio transactions on behalf of the Funds. The Trustees also reviewed information on the performance of the Funds and the performance of their underlying indices through December 31, 2009. The Trustees also reviewed reports on the correlation and tracking error between the underlying index and each Fund's performance, including a report of Ibbotson Associates, a consultant to the Independent Trustees, that analyzed the reasons for tracking error for certain PowerShares funds, as well as the Adviser's analysis of the tracking error between each Fund and its underlying index. The Trustees noted that, in each case, the correlation and tracking error for each Fund was within the targeted range set forth in the Trust's registration statement. The Trustees concluded that each Fund was correlated to its underlying index and that the tracking error for each Fund was within an acceptable range given that Fund's particular circumstances.

107

Board Considerations Regarding Continuation of Investment Advisory Agreement (Continued)

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.

108

PROXY VOTING POLICIES AND PROCEDURES

QUARTERLY PORTFOLIOS

301 West Roosevelt Road
Wheaton, IL 60187

800.983.0903
www.invescopowershares.com

2010 Annual Report to Shareholders

April 30, 2010

PowerShares Buyback Achievers^TM Portfolio

PowerShares Dividend Achievers^TM Portfolio

PowerShares Financial Preferred Portfolio

PowerShares High Yield Equity Dividend
Achievers^TM Portfolio

PowerShares International Dividend
Achievers^TM Portfolio

Table of Contents

The Market Environment					2

Manager's Analysis					4

Frequency Distribution of Discounts & Premiums					14

Fees and Expenses					16

Dividend Income Portfolios

Schedules of Investments

PowerShares Buyback Achievers^TM Portfolio					18

PowerShares Dividend Achievers^TM Portfolio					20

PowerShares Financial Preferred Portfolio					23

PowerShares High Yield Equity Dividend Achievers^TM Portfolio					24

PowerShares International Dividend Achievers^TM Portfolio					25

Statements of Assets and Liabilities					28

Statements of Operations					29

Statements of Changes in Net Assets					30

Financial Highlights					32

Notes to Financial Statements					35

Report of Independent Registered Public Accounting Firm					46

Tax Information					47

Proxy Results					48

Trustees and Officers					49

Board Considerations Regarding Continuation of Investment Advisory Agreement					55

The Market Environment

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Manager's Analysis

PowerShares Buyback Achievers^TM Portfolio (ticker: PKW)

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

For the fiscal year ended April 30, 2010, the Fund returned 40.46%. Over this same year, the Index returned 41.37%, while the S&P 500^® Index returned 38.82%. The Fund benefited from positive performance in consumer discretionary, industrials and information technology sectors. Fund performance was positive within each sector.

Sector Breakdown (% of the Fund's

Net Assets) as of April 30, 2010

Health Care	27.2
Consumer Discretionary	20.4
Industrials	12.3
Information Technology	10.2
Consumer Staples	9.9
Financials	9.3
Energy	6.7
Materials	2.0
Telecommunication Services	1.2
Utilities	0.7
Money Market Fund	0.2
Other	(0.1	)

Style Allocation (% of the Fund's

Total Investments) as of April 30, 2010

Large-Cap Value					37.3
Mid-Cap Growth					17.3
Large-Cap Growth					14.7
Small-Cap Value					11.9
Small-Cap Growth					10.7
Mid-Cap Value					8.1

Top Ten Fund Holdings (% of the Fund's

Net Assets) as of April 30, 2010

*Security*
Sears Holdings Corp.					5.1
DIRECTV					5.1
Raytheon Co.					5.1
Philip Morris International, Inc.					5.1
Travelers Cos., Inc. (The)					5.0
Zimmer Holdings, Inc.					5.0
Exxon Mobil Corp.					5.0
Aetna, Inc.					4.9
WellPoint, Inc.					4.7
Quest Diagnostics, Inc.					4.7
Total					49.7

Manager's Analysis (Continued)

PowerShares Buyback Achievers^TM Portfolio (ticker: PKW)

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

Fund Performance History (%)							As of April 30, 2010
	Avg Ann^††						Fund Inception^†
	1 Year			3 Year			Avg Ann^††			Cumulative
Index
Share BuyBack Achievers Index		41.37	%		-3.24	%		-1.64	%		-5.39	%
S&P 500^® Index		38.82	%		-5.04	%		-3.11	%		-10.01	%
Russell 3000^® Value Index		43.10	%		-7.36	%		-5.34	%		-16.71	%
Fund
NAV Return		40.46	%		-3.95	%		-2.37	%		-7.72	%
Share Price Return		40.43	%		-4.04	%		-2.40	%		-7.83	%

Fund Inception: December 20, 2006

Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2011. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.92%. In the Financial Highlights section of this Shareholder Report, the Fund's total net (subsidized) operating expense ratio was determined to be 0.70% while the Fund's total gross operating expense ratio was 0.97%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.

The S&P 500^® Index and Russell 3000^® Value Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 500 and 1,896 common stocks, respectively.

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

^†† Average annualized.

Manager's Analysis

PowerShares Dividend Achievers^TM Portfolio (ticker: PFM)

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

For the fiscal year ended April 30, 2010, the Fund returned 31.76%. Over this same year, the Index returned 32.13%, while the S&P 500^® Index returned 38.82%. The Fund benefited from positive performance in industrials, consumer staples and financials sectors. Fund performance was positive within each sector.

Sector Breakdown (% of the Fund's

Net Assets) as of April 30, 2010

Consumer Staples					25.5
Energy					14.0
Health Care					13.2
Industrials					12.6
Consumer Discretionary					8.5
Financials					6.7
Information Technology					6.5
Telecommunication Services					5.4
Materials					3.8
Utilities					3.8
Money Market Fund					0.0
Other					0.0

Style Allocation (% of the Fund's

Total Investments) as of April 30, 2010

Large-Cap Growth					43.7
Large-Cap Value					40.4
Mid-Cap Value					7.5
Mid-Cap Growth					5.5
Small-Cap Value					2.4
Small-Cap Growth					0.5

Top Ten Fund Holdings (% of the Fund's

Net Assets) as of April 30, 2010

*Security*
Chevron Corp.					5.3
Exxon Mobil Corp.					5.0
AT&T, Inc.					5.0
International Business Machines Corp.					4.9
Johnson & Johnson					4.9
Procter & Gamble Co. (The)					4.8
Wal-Mart Stores, Inc.					4.7
Coca-Cola Co. (The)					4.2
PepsiCo, Inc.					3.6
Abbott Laboratories					2.7
Total					45.1

Manager's Analysis (Continued)

PowerShares Dividend Achievers^TM Portfolio (ticker: PFM)

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

Fund Performance History (%)							As of April 30, 2010
	Avg Ann^††						Fund Inception^†
	1 Year			3 Year			Avg Ann^††			Cumulative
Index
Broad Dividend Achievers^TM Index		32.13	%		-6.73	%		-0.08	%		-0.39	%
S&P 500^® Index		38.82	%		-5.04	%		1.51	%		7.23	%
Russell 3000^® Value Index		43.10	%		-7.36	%		0.94	%		4.44	%
Fund
NAV Return		31.76	%		-6.89	%		-0.40	%		-1.84	%
Share Price Return		31.76	%		-6.93	%		-0.40	%		-1.84	%

Fund Inception: September 15, 2005

Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2011. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.74%. In the Financial Highlights section of this Shareholder Report, the Fund's total net (subsidized) operating expense ratio was determined to be 0.60% while the Fund's total gross operating expense ratio was 0.64%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.

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

^†† Average annualized.

Manager's Analysis

PowerShares Financial Preferred Portfolio (ticker: PGF)

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

For the fiscal year ended April 30, 2010, the Fund returned 62.16%. Over this same year the Index returned 67.92% while the S&P Preferred Index returned 61.56%. Because the Index does not comply with the tax diversification requirements to which the Fund must adhere, a sampling methodology was utilized to help the Fund achieve its investment objective. Part of the difference between the Fund and the Index performance, beyond regular Fund expenses, can be attributed to the Fund's sampling methodology.

Industry Breakdown (% of the Fund's

Net Assets) as of April 30, 2010

Banks					60.0
Insurance					28.9
Diversified Financial Services					10.1
Other					0.6
Money Market Fund					0.4

Style Allocation (% of the Fund's

Total Investments) as of April 30, 2010

Small-Cap Value					56.5
Mid-Cap Value					34.1
Large-Cap Value					9.4

Top Ten Fund Holdings (% of the Fund's

Net Assets) as of April 30, 2010

*Security*
Barclays Bank PLC, 8.13%					9.1
Bank of America Corp., 8.20%					8.0
ING Groep NV, 8.50%					5.5
Bank of America Corp., 8.63%					5.2
Wells Fargo & Co., 8.00%					5.0
HSBC Holdings PLC, 8.13%					4.9
JPMorgan Chase & Co., 8.63%					4.9
ING Groep NV, 7.38%					4.2
Credit Suisse Guernsey, 7.90%					4.1
MetLife, Inc., 6.50%					3.9
Total					54.8

Manager's Analysis (Continued)

PowerShares Financial Preferred Portfolio (ticker: PGF)

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

Fund Performance History (%)							As of April 30, 2010
	Avg Ann^††						Fund Inception^†
	1 Year			3 Year			Avg Ann^††			Cumulative
Index
Wells Fargo^® Hybrid & Preferred Financial Index		67.92	%		-2.13	%		-1.46	%		-4.88	%
S&P Preferred Index		61.56	%		-0.60	%		0.55	%		1.88	%
S&P 500^® Index		38.82	%		-5.04	%		-2.64	%		-8.75	%
Fund
NAV Return		62.16	%		-3.66	%		-2.89	%		-9.53	%
Share Price Return		61.76	%		-3.86	%		-3.18	%		-10.43	%

Fund Inception: December 1, 2006

Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses during previous fiscal periods, absent which, performance during those fiscal periods would have been lower. The Adviser has contractually agreed to waive and/or pay certain Fund expenses through August 31, 2011. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.68%. In the Financial Highlights section of this Shareholder Report, the Fund's total net (subsidized) and total gross operating expense ratio was determined to be 0.65%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.

The S&P Preferred Index and S&P 500^® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 44 and 500 common stocks, respectively.

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

^†† Average annualized.

Manager's Analysis

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

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

For the fiscal year ended April 30, 2010, the Fund returned 44.59%. Over this same year, the Index returned 42.86%, while the Dow Jones U.S. Select Dividend Index returned 42.37%. The Fund benefited from positive performance in financials, utilities and industrials sectors. Fund performance was positive within each sector for the reporting period. The Fund outperformed the Index, due to the January rebalance at which time the Fund rebalanced over three days due to the thinly traded nature of some of its securities. This resulted in positive trading slippage of approximately 100 bps.

Industry Breakdown (% of the Fund's

Net Assets) as of April 30, 2010

Electric	17.8
Banks	14.6
Insurance	13.5
Gas	11.6
Telecommunications	6.7
Agriculture	4.7
Savings & Loans	3.6
Commerical Services	3.4
Chemicals	3.3
Office/Business Equipment	2.7
Food	2.5
Pharmaceuticals	2.4
Miscellaneous Manufacturing	2.2
Water	1.9
Household Products/Wares	1.9
Distribution/Wholesale	1.8
Packaging & Containers	1.6
Environmental Control	1.5
Computers	1.4
Machinery-Diversified	1.2
Other	(0.3	)

Top Ten Fund Holdings (% of the Fund's

Net Assets) as of April 30, 2010

*Security*
CenturyTel, Inc.					3.7
Altria Group, Inc.					3.1
AT&T, Inc.					2.9
Progress Energy, Inc.					2.9
Pitney Bowes, Inc.					2.7
Integrys Energy Group, Inc.					2.6
Old Republic International Corp.					2.5
Vectren Corp.					2.5
Mercury General Corp.					2.5
Eli Lilly & Co.					2.4
Total					27.8

Style Allocation (% of the Fund's

Total Investments) as of April 30, 2010

Small-Cap Value					38.4
Mid-Cap Value					29.4
Large-Cap Value					21.7
Mid-Cap Growth					8.9
Large-Cap Growth					1.6

Manager's Analysis (Continued)

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

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

Fund Performance History (%)										As of April 30, 2010
	Avg Ann^††									Fund Inception^†
	1 Year			3 Year			5 Year			Avg Ann^††			Cumulative
Index
Mergent Dividend Achievers^TM 50 Index		42.86	%		-16.03	%		-7.13	%		-6.89	%		-31.95	%
Dow Jones U.S. Select Dividend Index		42.37	%		-8.92	%		0.17	%		0.00	%		0.01	%
S&P Citigroup Large Cap Value Index		41.93	%		-8.10	%		1.85	%		1.46	%		8.18	%
S&P 500^® Index		38.82	%		-5.04	%		2.63	%		2.29	%		13.02	%
Fund
NAV Return		44.59	%		-14.63	%		-6.00	%		-5.84	%		-27.69	%
Share Price Return		44.58	%		-14.56	%		-5.99	%		-5.83	%		-27.64	%

Fund Inception: December 9, 2004

Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2011. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.62%. In the Financial Highlights section of this Shareholder Report, the Fund's total net (subsidized) operating expense ratio was determined to be 0.60% while the Fund's total gross operating expense ratio was 0.65%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.

The Dow Jones U.S. Select Dividend Index, S&P Citigroup Large Cap Value Index, and S&P 500^® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 100, 346, and 500 common stocks, respectively.

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

^†† Average annualized.

Manager's Analysis

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

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

For the fiscal year ended April 30, 2010, the Fund returned 45.77%. Over this same year, the Index returned 45.14%, while the Dow Jones EPAC Select Dividend Index returned 52.85%. The Fund benefited from positive performance in financials, energy and industrials sectors. Fund performance was positive within each sector.

Sector Breakdown (% of the Fund's

Net Assets) as of April 30, 2010

Telecommunication Services					19.0
Energy					16.8
Financials					13.0
Consumer Staples					10.9
Consumer Discretionary					10.5
Health Care					9.8
Industrials					7.8
Materials					6.2
Utilities					4.3
Information Technology					1.6
Other					0.1

Style Allocation (% of the Fund's

Total Investments) as of April 30, 2010

Large-Cap Value					46.6
Large-Cap Growth					32.9
Mid-Cap Value					10.3
Mid-Cap Growth					8.6
Small-Cap Growth					0.9
Small-Cap Value					0.7

Top Ten Fund Holdings (% of the Fund's

Net Assets) as of April 30, 2010

*Security*
Grupo Aeroportuario del Sureste SAB de CV					3.7
Telefonos de Mexico SAB de CV					3.5
Banco Santander SA					2.9
National Grid PLC					2.5
Vodafone Group PLC					2.3
Teekay Corp.					2.3
Turkcell Iletisim Hizmetleri AS					2.2
BP PLC					2.2
Telus Corp.					2.2
AstraZeneca PLC					2.2
Total					26.0

Manager's Analysis (Continued)

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

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

Fund Performance History (%)							As of April 30, 2010
	Avg Ann^††						Fund Inception^†
	1 Year			3 Year			Avg Ann^††			Cumulative
Index
International Dividend Achievers^TM Index		45.14	%		-8.03	%		1.82	%		8.67	%
Dow Jones EPAC Select Dividend Index		52.85	%		-9.20	%		5.05	%		25.87	%
MSCI EAFE^® Value Index		32.49	%		-10.36	%		2.10	%		10.18	%
S&P 500^® Index		38.82	%		-5.04	%		1.51	%		7.23	%
Fund
NAV Return		45.77	%		-7.81	%		2.07	%		9.94	%
Share Price Return		45.62	%		-7.81	%		2.07	%		9.94	%

Fund Inception: September 15, 2005

Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed during previous fiscal periods, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2011. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.57%. In the Financial Highlights section of this Shareholder Report, the Fund's total net (subsidized) and total gross operating expense ratio was determined to be 0.57%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.

The Dow Jones EPAC Select Dividend Index, MSCI EAFE^® Value Index, and S&P 500^® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 100, 607, and 500 common stocks, respectively.

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

^†† Average annualized.

Frequency Distribution of Discounts & Premiums

Since Inception through April 30, 2010

					Closing Price Above NAV (bps)
Ticker	Fund Name	Inception	Trading Days		0-24		25-49		50-99		100-149		150-199		200+
PKW	PowerShares Buyback Achievers^(TM) Portfolio	12/20/06		845		323		35		8		1		2		1
PFM	PowerShares Dividend Achievers^(TM) Portfolio	09/15/05		1164		574		64		15		3		0		3
PGF	PowerShares Financial Preferred Portfolio	12/01/06		858		309		180		88		29		24		68
PEY	PowerShares High Yield Equity Dividend Achievers^(TM) Portfolio	12/09/04		1357		471		47		7		4		0		1
PID	PowerShares International Dividend Achievers^(TM) Portfolio	09/15/05		1164		519		61		16		4		2		1

	Closing Price Below NAV (bps)
Ticker	-0-24		-25-49		-50-99		-100-149		-150-199		-200+
PKW		462		11		2		0		0		0
PFM		493		9		2		1		0		0
PGF		129		14		10		3		2		2
PEY		726		89		9		1		1		1
PID		437		74		38		7		4		1

Fees and Expenses

The example is based on an investment of $1,000 invested at the beginning of the period and held through the six-month period ended April 30, 2010.

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value November 1, 2009		Ending Account Value April 30, 2010		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During the Six-Month Period⁽¹⁾
PowerShares Buyback Achievers^TM Portfolio Actual	$	1,000.00	$	1,182.20		0.70	%	$	3.79
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.32		0.70	%	$	3.51
PowerShares Dividend Achievers^TM Portfolio Actual	$	1,000.00	$	1,129.07		0.60	%	$	3.17
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.82		0.60	%	$	3.01
PowerShares Financial Preferred Portfolio Actual	$	1,000.00	$	1,149.43		0.65	%	$	3.46
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.57		0.65	%	$	3.26
PowerShares High Yield Equity Dividend Achievers^TM Portfolio Actual	$	1,000.00	$	1,190.80		0.60	%	$	3.26
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.82		0.60	%	$	3.01

Fees and Expenses (Continued)

	Beginning Account Value November 1, 2009		Ending Account Value April 30, 2010		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During the Six-Month Period⁽¹⁾
PowerShares International Dividend Achievers^TM Portfolio Actual	$	1,000.00	$	1,098.60		0.57	%	$	2.97
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.97		0.57	%	$	2.86

Schedule of Investments

PowerShares Buyback Achievers^TM Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks and Other Equity Interests—99.9%
		Consumer Discretionary—20.4%
	5,092	American Greetings Corp., Class A	$	125,060
	7,911	AutoZone, Inc.*		1,463,614
	4,335	Children's Place Retail Stores, Inc. (The)*		198,630
	9,435	Choice Hotels International, Inc.		342,585
	53,744	DIRECTV, Class A*		1,947,145
	24,557	Liberty Global, Inc., Class A*		673,107
	5,825	Mediacom Communications Corp., Class A*		38,561
	6,711	Netflix, Inc.*		662,845
	2,085	Perry Ellis International, Inc.*		50,311
	1,446	Pre-Paid Legal Services, Inc.*		64,304
	4,726	Radio One, Inc., Class D*		23,819
	16,099	Sears Holdings Corp.*		1,947,174
	2,351	Steiner Leisure Ltd.*		110,191
	3,810	Universal Technical Institute, Inc.*		91,288
				7,738,634
		Consumer Staples—9.9%
	8,740	BJ's Wholesale Club, Inc.*		334,567
	39,096	Philip Morris International, Inc.		1,918,832
	64,220	Safeway, Inc.		1,515,592
				3,768,991
		Energy—6.7%
	15,388	Cal Dive International, Inc.*		100,945
	3,196	CARBO Ceramics, Inc.		234,107
	2,468	Contango Oil & Gas Co.*		135,493
	27,738	Exxon Mobil Corp.		1,882,024
	4,204	Overseas Shipholding Group, Inc.		210,452
				2,563,021
		Financials—9.3%
	1,578	American Physicians Capital, Inc.		52,768
	7,068	Ashford Hospitality Trust, Inc. REIT*		65,732
	4,387	eHealth, Inc.*		60,146
	6,433	Employers Holdings, Inc.		106,016
	2,700	First Mercury Financial Corp.		35,397
	1,705	FPIC Insurance Group, Inc.*		46,410
	2,186	Infinity Property & Casualty Corp.		100,840
	12,816	iStar Financial, Inc. REIT*		85,995
	7,854	LaBranche & Co., Inc.*		38,799
	21,806	MBIA, Inc.*		208,902
	11,883	Montpelier Re Holdings Ltd. (Bermuda)		197,258
	2,555	Safety Insurance Group, Inc.		95,276
	37,543	Travelers Cos., Inc. (The)		1,904,932
	2,767	United Financial Bancorp, Inc.		38,683
	1,480	White Mountains Insurance Group Ltd.		508,528
				3,545,682
		Health Care—27.2%
	62,925	Aetna, Inc.		1,859,434
	44,814	AmerisourceBergen Corp.		1,382,512
	1,584	Assisted Living Concepts, Inc., Class A*		55,598

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	2,038	CorVel Corp.*	$	67,865
	8,857	Gen-Probe, Inc.*		419,733
	10,436	Lincare Holdings, Inc.*		487,257
	6,070	Magellan Health Services, Inc.*		256,215
	3,977	Molina Healthcare, Inc.*		116,009
	3,360	Nighthawk Radiology Holdings, Inc.*		12,432
	31,083	Quest Diagnostics, Inc.		1,776,704
	4,970	Quidel Corp.*		73,258
	1,950	Synovis Life Technologies, Inc.*		28,860
	3,307	Triple-S Management Corp., Class B*		60,187
	2,610	Vital Images, Inc.*		41,186
	33,407	WellPoint, Inc.*		1,797,297
	31,232	Zimmer Holdings, Inc.*		1,902,341
				10,336,888
		Industrials—12.3%
	18,569	Corrections Corp. of America*		384,750
	6,657	GATX Corp.		217,284
	15,360	Heartland Express, Inc.		254,054
	5,883	Hill International, Inc.*		37,769
	6,615	Innerworkings, Inc.*		39,558
	32,942	Raytheon Co.		1,920,518
	4,970	Robbins & Myers, Inc.		128,773
	8,192	SPX Corp.		572,457
	2,506	Standard Parking Corp.*		42,326
	4,130	TAL International Group, Inc.		107,339
	8,423	Thomas & Betts Corp.*		353,261
	5,158	Toro Co. (The)		293,696
	10,351	WABCO Holdings, Inc.*		343,550
				4,695,335
		Information Technology—10.2%
	7,290	Actuate Corp.*		41,261
	6,447	Advanced Analogic Technologies, Inc.*		24,499
	7,600	Alliance Data Systems Corp.*		570,456
	37,794	Compuware Corp.*		325,028
	6,631	EchoStar Corp., Class A*		127,382
	10,880	Global Cash Access Holdings, Inc.*		94,438
	17,671	IAC/InterActiveCorp.*		396,184
	3,321	Manhattan Associates, Inc.*		95,180
	3,943	Marchex, Inc., Class B		20,740
	9,270	Micrel, Inc.		108,181
	8,438	Net 1 UEPS Technologies, Inc.*		138,383
	12,468	NeuStar, Inc., Class A*		305,092
	4,601	Perficient, Inc.*		57,374
	18,586	QLogic Corp.*		360,011
	14,950	Quest Software, Inc.*		262,074
	5,255	RightNow Technologies, Inc.*		86,182
	2,465	Rubicon Technology, Inc.*		66,900
	11,919	Sanmina-SCI Corp.*		212,516
	26,461	TIBCO Software, Inc.*		301,655
	4,702	Web.com Group, Inc.*		22,711

See Notes to Financial Statements.

Schedule of Investments (Continued)

PowerShares Buyback Achievers^TM Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	9,691	Zebra Technologies Corp., Class A*	$	281,524
				3,897,771
		Materials—2.0%
	8,923	CF Industries Holdings, Inc.		746,587
		Telecommunication Services—1.2%
	34,082	Cincinnati Bell, Inc.*		114,856
	8,111	Telephone & Data Systems, Inc.		281,127
	3,427	USA Mobility, Inc.		47,773
				443,756
		Utilities—0.7%
	22,327	Mirant Corp.*		260,333
		Total Common Stocks and Other Equity Interests (Cost $34,623,227)		37,996,998
		Money Market Fund—0.2%
	60,174	Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $60,174)		60,174
		Total Investments (Cost $34,683,401)—100.1%		38,057,172
		Liabilities in excess of other assets—(0.1%)		(37,966	)
		Net Assets—100.0%	$	38,019,206

Investment Abbreviations:

REIT—Real Estate Investment Trust

Notes to Schedule of Investments:

* Non-income producing security.

See Notes to Financial Statements.

Schedule of Investments

PowerShares Dividend Achievers^TM Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—8.5%
	6,106	Family Dollar Stores, Inc.	$	241,553
	7,174	Genuine Parts Co.		307,047
	14,882	H&R Block, Inc.		272,489
	2,249	John Wiley & Sons, Inc., Class A		95,065
	6,702	Leggett & Platt, Inc.		164,400
	65,243	Lowe's Cos., Inc.		1,769,390
	1,372	Matthews International Corp., Class A		48,020
	48,608	McDonald's Corp.		3,431,239
	14,241	McGraw-Hill Cos., Inc. (The)		480,207
	1,636	Meredith Corp.		58,781
	1,487	Polaris Industries, Inc.		87,986
	5,531	Ross Stores, Inc.		309,736
	4,967	Sherwin-Williams Co. (The)		387,774
	7,222	Stanley Black & Decker, Inc.		448,847
	33,418	Target Corp.		1,900,482
	18,505	TJX Cos., Inc. (The)		857,522
	5,000	VF Corp.		432,100
	2,251	Wolverine World Wide, Inc.		68,903
				11,361,541
		Consumer Staples—25.5%
	94,131	Altria Group, Inc.		1,994,636
	29,046	Archer-Daniels-Midland Co.		811,545
	19,636	Avon Products, Inc.		634,832
	4,081	Brown-Forman Corp., Class B		237,433
	2,301	Casey's General Stores, Inc.		88,888
	3,196	Church & Dwight Co., Inc.		221,323
	6,339	Clorox Co. (The)		410,133
	104,195	Coca-Cola Co. (The)		5,569,223
	22,249	Colgate-Palmolive Co.		1,871,141
	6,041	Hormel Foods Corp.		246,231
	5,385	J.M. Smucker Co. (The)		328,862
	18,810	Kimberly-Clark Corp.		1,152,301
	1,275	Lancaster Colony Corp.		70,087
	5,429	McCormick & Co., Inc.		214,825
	72,897	PepsiCo, Inc.		4,754,342
	103,694	Procter & Gamble Co. (The)		6,445,619
	9,583	SUPERVALU, Inc.		142,787
	26,784	Sysco Corp.		844,767
	1,619	Tootsie Roll Industries, Inc.		43,065
	1,107	Universal Corp.		57,320
	3,222	Vector Group Ltd.		52,809
	44,226	Walgreen Co.		1,554,544
	117,752	Wal-Mart Stores, Inc.		6,317,395
				34,064,108
		Energy—14.0%
	2,337	Buckeye Partners LP		142,043
	86,535	Chevron Corp.		7,047,410
	8,554	Energy Transfer Partners LP		418,291
	28,610	Enterprise Products Partners LP		1,014,511

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	11,417	EOG Resources, Inc.	$	1,280,074
	97,792	Exxon Mobil Corp.		6,635,187
	4,778	Helmerich & Payne, Inc.		194,082
	2,407	Holly Corp.		64,989
	13,477	Kinder Morgan Energy Partners LP		909,563
	8,647	Murphy Oil Corp.		520,117
	6,154	Plains All American Pipeline LP		356,870
	2,090	TC Pipelines LP		79,922
				18,663,059
		Financials—6.7%
	21,206	Aflac, Inc.		1,080,658
	498	Arrow Financial Corp.		13,844
	4,683	Arthur J. Gallagher & Co.		123,022
	692	BancFirst Corp.		30,545
	3,772	BancorpSouth, Inc.		83,512
	2,172	Bank of Hawaii Corp.		114,855
	765	Bank of The Ozarks, Inc.		29,430
	6,424	Brown & Brown, Inc.		129,379
	14,850	Chubb Corp. (The)		785,120
	7,365	Cincinnati Financial Corp.		209,166
	3,765	Commerce Bancshares, Inc.		155,946
	1,493	Community Bank System, Inc.		36,832
	687	Community Trust Bancorp, Inc.		20,624
	2,658	Corporate Office Properties Trust REIT		107,516
	2,726	Cullen/Frost Bankers, Inc.		161,815
	5,355	Eaton Vance Corp.		188,710
	2,315	Erie Indemnity Co., Class A		107,208
	1,304	Essex Property Trust, Inc. REIT		137,989
	2,772	Federal Realty Investment Trust REIT		214,525
	4,666	Federated Investors, Inc., Class B		112,544
	942	First Financial Bankshares, Inc.		50,378
	593	First Financial Corp.		17,286
	10,316	Franklin Resources, Inc.		1,192,942
	1,119	Getty Realty Corp. REIT		27,718
	1,244	Harleysville Group, Inc.		39,833
	5,197	HCC Insurance Holdings, Inc.		141,306
	13,287	HCP, Inc. REIT		426,778
	1,589	Home Properties, Inc. REIT		78,957
	23,815	Hudson City Bancorp, Inc.		316,740
	4,297	Investors Real Estate Trust REIT		37,513
	728	Lakeland Financial Corp.		15,186
	2,476	Mercury General Corp.		111,395
	3,759	National Retail Properties, Inc. REIT		88,449
	10,879	Old Republic International Corp.		163,294
	16,939	People's United Financial, Inc.		263,063
	2,105	Prosperity Bancshares, Inc.		82,558
	4,719	Realty Income Corp. REIT		154,736
	837	Republic Bancorp, Inc., Class A		20,214
	954	RLI Corp.		55,332
	618	S.Y. Bancorp, Inc.		14,671

See Notes to Financial Statements.

Schedule of Investments (Continued)

PowerShares Dividend Achievers^TM Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	8,580	SEI Investments Co.	$	192,707
	712	Southside Bancshares, Inc.		15,365
	2,136	StanCorp Financial Group, Inc.		96,035
	11,733	T. Rowe Price Group, Inc.		674,765
	1,829	Tanger Factory Outlet Centers, Inc. REIT		76,086
	488	Tompkins Financial Corp.		19,823
	2,946	Transatlantic Holdings, Inc.		146,505
	1,830	UMB Financial Corp.		77,080
	1,964	United Bankshares, Inc.		57,035
	547	Universal Health Realty Income Trust REIT		18,171
	828	Urstadt Biddle Properties, Inc., Class A REIT		13,960
	1,773	W.P. Carey & Co. LLC		54,573
	2,706	Washington REIT		85,104
	726	Washington Trust Bancorp, Inc.		13,148
	322	Wesco Financial Corp.		122,054
	1,323	Westamerica Bancorp		77,753
	320	WSFS Financial Corp.		13,475
				8,895,228
		Health Care—13.2%
	70,182	Abbott Laboratories		3,590,511
	3,161	Beckman Coulter, Inc.		197,246
	10,654	Becton, Dickinson and Co.		813,646
	4,299	C.R. Bard, Inc.		371,992
	16,339	Cardinal Health, Inc.		566,800
	6,608	DENTSPLY International, Inc.		242,117
	52,124	Eli Lilly & Co.		1,822,776
	100,624	Johnson & Johnson		6,470,123
	49,791	Medtronic, Inc.		2,175,369
	1,835	Meridian Bioscience, Inc.		36,682
	2,850	Owens & Minor, Inc.		89,633
	17,917	Stryker Corp.		1,029,152
	1,802	Teleflex, Inc.		110,499
	1,502	West Pharmaceutical Services, Inc.		62,859
				17,579,405
		Industrials—12.6%
	32,180	3M Co.		2,853,401
	1,373	A.O. Smith Corp.		70,888
	2,347	ABM Industries, Inc.		50,437
	677	Badger Meter, Inc.		28,001
	2,369	Brady Corp., Class A		81,399
	7,868	C.H. Robinson Worldwide, Inc.		474,440
	2,751	Carlisle Cos., Inc.		103,795
	28,395	Caterpillar, Inc.		1,933,416
	6,910	Cintas Corp.		188,297
	2,280	CLARCOR, Inc.		86,230
	3,491	Donaldson Co., Inc.		161,633
	8,442	Dover Corp.		440,841
	34,012	Emerson Electric Co.		1,776,447
	9,600	Expeditors International of Washington, Inc.		391,104
	6,664	Fastenal Co.		364,454

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	1,046	Franklin Electric Co., Inc.	$	36,600
	17,380	General Dynamics Corp.		1,327,137
	755	Gorman-Rupp Co. (The)		21,057
	2,739	Graco, Inc.		94,989
	3,639	Harsco Corp.		112,663
	22,711	Illinois Tool Works, Inc.		1,160,532
	1,081	McGrath Rentcorp		28,095
	1,626	Mine Safety Appliances Co.		47,788
	376	NACCO Industries, Inc., Class A		32,689
	1,530	Nordson Corp.		109,885
	7,268	Parker Hannifin Corp.		502,800
	4,459	Pentair, Inc.		161,237
	9,380	Pitney Bowes, Inc.		238,252
	815	Raven Industries, Inc.		24,743
	4,235	Roper Industries, Inc.		258,420
	850	Tennant Co.		29,316
	42,327	United Technologies Corp.		3,172,409
	875	Universal Forest Products, Inc.		36,794
	3,285	W.W. Grainger, Inc.		363,124
				16,763,313
		Information Technology—6.5%
	22,819	Automatic Data Processing, Inc.		989,432
	2,997	Diebold, Inc.		93,956
	2,108	FactSet Research Systems, Inc.		158,564
	50,500	International Business Machines Corp.		6,514,500
	3,820	Jack Henry & Associates, Inc.		97,486
	10,103	Linear Technology Corp.		303,696
	16,337	Paychex, Inc.		499,912
				8,657,546
		Materials—3.8%
	9,599	Air Products & Chemicals, Inc.		737,011
	4,128	Albemarle Corp.		188,484
	3,065	AptarGroup, Inc.		131,918
	4,928	Bemis Co., Inc.		149,860
	10,674	Ecolab, Inc.		521,318
	2,212	H.B. Fuller Co.		51,871
	2,049	Martin Marietta Materials, Inc.		196,458
	14,243	Nucor Corp.		645,493
	7,518	PPG Industries, Inc.		529,042
	13,840	Praxair, Inc.		1,159,377
	5,860	RPM International, Inc.		129,389
	5,487	Sigma-Aldrich Corp.		325,379
	4,532	Sonoco Products Co.		150,145
	450	Stepan Co.		34,088
	4,487	Valspar Corp. (The)		140,533
				5,090,366
		Telecommunication Services—5.4%
	253,898	AT&T, Inc.		6,616,582
	691	Atlantic Tele-Network, Inc.		38,129

See Notes to Financial Statements.

Schedule of Investments (Continued)

PowerShares Dividend Achievers^TM Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	13,550	CenturyTel, Inc.	$	462,191
	1,071	Shenandoah Telecommunications Co.		19,021
	2,545	Telephone & Data Systems, Inc.		88,210
				7,224,133
		Utilities—3.8%
	839	American States Water Co.		31,311
	6,190	Aqua America, Inc.		113,463
	4,206	Atmos Energy Corp.		124,413
	1,771	Black Hills Corp.		58,248
	940	California Water Service Group		36,406
	12,736	Consolidated Edison, Inc.		575,667
	3,248	Energen Corp.		158,730
	18,736	FPL Group, Inc.		975,209
	3,459	Integrys Energy Group, Inc.		171,601
	8,500	MDU Resources Group, Inc.		180,200
	1,045	MGE Energy, Inc.		38,414
	613	Middlesex Water Co.		11,071
	3,666	National Fuel Gas Co.		190,705
	1,872	New Jersey Resources Corp.		70,631
	7,954	Northeast Utilities		221,042
	1,201	Northwest Natural Gas Co.		56,915
	4,828	NSTAR		176,705
	3,243	Piedmont Natural Gas Co., Inc.		89,183
	17,083	PPL Corp.		422,975
	12,866	Progress Energy, Inc.		513,611
	7,911	Questar Corp.		379,332
	837	SJW Corp.		23,001
	1,348	South Jersey Industries, Inc.		60,808
	1,595	Suburban Propane Partners LP		76,720
	4,921	UGI Corp.		135,278
	3,670	Vectren Corp.		91,787
	2,274	WGL Holdings, Inc.		81,273
				5,064,699
		Total Common Stocks and Other Equity Interests (Cost $119,678,305)		133,363,398
		Money Market Fund—0.0%
	9,674	Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $9,674)		9,674
		Total Investments (Cost $119,687,979)—100.0%		133,373,072
		Other assets less liabilities—0.0%		7,198
		Net Assets—100.0%	$	133,380,270

Investment Abbreviations:

REIT—Real Estate Investment Trust

See Notes to Financial Statements.

Schedule of Investments

PowerShares Financial Preferred Portfolio

April 30, 2010

Number of Shares			Value
		Preferred Stocks—99.0%
		Banks—60.0%
	1,925,626	Bank of America Corp., 6.20%, Series D(~)	$	38,916,902
	2,196,397	Bank of America Corp., 7.25%, Series J(~)		51,966,753
	5,384,639	Bank of America Corp., 8.20%		137,415,987
	3,401,880	Bank of America Corp., 8.63%, Series MER		89,571,500
	773,246	Barclays Bank PLC, 6.63%, Series 2 (United Kingdom)		16,887,693
	818,561	Barclays Bank PLC, 7.75%, Series 4 (United Kingdom)		20,079,301
	6,218,017	Barclays Bank PLC, 8.13%, Series 5 (United Kingdom)(~)		156,445,308
	1,552,050	Goldman Sachs Group, Inc. (The), 6.20%, Series B		36,969,831
	3,159,244	HSBC Holdings PLC, 8.13% (United Kingdom)		84,035,890
	1,165,232	HSBC USA, Inc., 6.50%, Series H(~)		27,895,654
	2,990,983	JPMorgan Chase & Co., 8.63%, Series J		83,149,327
	1,261,325	National Bank of Greece SA, 9.00% (Greece)(~)		23,763,363
	1,400,453	Royal Bank of Scotland Group PLC, 5.75%, Series L (United Kingdom)		22,295,212
	560,139	Royal Bank of Scotland Group PLC, 6.35%, Series N (United Kingdom)		7,433,045
	472,823	Royal Bank of Scotland Group PLC, 6.40%, Series M (United Kingdom)		6,307,459
	820,590	Royal Bank of Scotland Group PLC, 6.60%, Series S (United Kingdom)		11,176,436
	533,940	Royal Bank of Scotland Group PLC, 6.75%, Series Q (United Kingdom)		7,485,839
	2,309,623	Royal Bank of Scotland Group PLC, 7.25%, Series T (United Kingdom)		34,182,420
	2,025,900	Santander Finance SA Unipersonal, 10.50%, Series 10 (Spain)(~)		55,043,703
	1,203,241	U.S. Bancorp, 7.88%, Series D(~)		32,427,345
	3,107,852	Wells Fargo & Co., 8.00%, Series J		85,155,145
				1,028,604,113
		Diversified Financial Services—10.1%
	2,750,982	Credit Suisse Guernsey, 7.90% (Switzerland)		70,975,335
	199,884	Deutsche Bank Capital Funding Trust IX, 6.63%		4,587,338
	1,007,948	Deutsche Bank Contingent Capital Trust III, 7.60%		25,027,349
	431,749	Deutsche Bank Contingent Capital Trust V, 8.05%		11,044,139
	1,430,795	HSBC Finance Corp., 6.36%(~)		32,049,808

Number of Shares			Value
		Preferred Stocks (Continued)
	1,145,906	Repsol International Capital Ltd., 7.45%, Series A	$	29,014,340
				172,698,309
		Insurance—28.9%
	1,173,963	Aegon NV, 6.38% (Netherlands)		22,692,705
	506,077	Aegon NV, 6.50% (Netherlands)		9,757,164
	505,240	Aegon NV, 6.88% (Netherlands)		10,296,791
	1,953,626	Aegon NV, 7.25% (Netherlands)		42,276,467
	629,376	Axis Capital Holdings Ltd., 7.25%, Series A(~)		15,350,481
	1,862,548	ING Groep NV, 6.13% (Netherlands)(~)		32,799,470
	2,769,826	ING Groep NV, 6.38% (Netherlands)(~)		49,662,980
	3,476,222	ING Groep NV, 7.38% (Netherlands)(~)		71,436,362
	3,988,251	ING Groep NV, 8.50% (Netherlands)		93,524,486
	2,738,709	MetLife, Inc., 6.50%, Series B		66,358,919
	732,715	PartnerRe Ltd., 6.75%, Series C(~)		18,134,696
	395,781	Principal Financial Group, Inc., 6.52%, Series B		9,186,077
	733,460	Prudential PLC, 6.50% (United Kingdom)(~)		16,964,930
	596,931	Prudential PLC, 6.75% (United Kingdom)(~)		14,380,068
	511,039	RenaissanceRe Holdings Ltd., 6.08%, Series C(~)		10,379,202
	604,252	RenaissanceRe Holdings Ltd., 6.60%, Series D(~)		13,323,757
				496,524,555
		Total Preferred Stocks (Cost $1,420,170,014)		1,697,826,977
		Money Market Fund—0.4%
	6,758,620	Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $6,758,620)		6,758,620
		Total Investments (Cost $1,426,928,634)—99.4%		1,704,585,597
		Other assets less liabilities—0.6%		10,238,769
		Net Assets—100.0%	$	1,714,824,366

Notes to Schedule of Investments:

(~) Affiliated Investment. See Note 4.

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

United Kingdom					23.2	%
Netherlands					19.4

See Notes to Financial Statements.

Schedule of Investments

PowerShares High Yield Equity Dividend Achievers^TM Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks—100.3%
		Agriculture—4.7%
	187,002	Altria Group, Inc.	$	3,962,573
	38,831	Universal Corp.		2,010,669
				5,973,242
		Banks—14.6%
	78,061	Arrow Financial Corp.		2,170,096
	111,348	BancorpSouth, Inc.		2,465,245
	44,389	Bank of Hawaii Corp.		2,347,290
	89,868	Community Bank System, Inc.		2,217,043
	83,793	Community Trust Bancorp, Inc.		2,515,466
	88,755	Lakeland Financial Corp.		1,851,429
	89,882	United Bankshares, Inc.		2,610,173
	133,615	Washington Trust Bancorp, Inc.		2,419,768
				18,596,510
		Chemicals—3.3%
	27,464	PPG Industries, Inc.		1,932,642
	100,463	RPM International, Inc.		2,218,223
				4,150,865
		Commercial Services—3.4%
	80,048	McGrath Rentcorp		2,080,447
	74,055	Paychex, Inc.		2,266,083
				4,346,530
		Computers—1.4%
	57,080	Diebold, Inc.		1,789,458
		Distribution/Wholesale—1.8%
	52,827	Genuine Parts Co.		2,260,996
		Electric—17.8%
	83,449	Black Hills Corp.		2,744,638
	68,702	Consolidated Edison, Inc.		3,105,330
	66,928	Integrys Energy Group, Inc.		3,320,298
	65,418	MGE Energy, Inc.		2,404,766
	78,612	Northeast Utilities		2,184,627
	70,139	NSTAR		2,567,087
	104,466	PPL Corp.		2,586,578
	93,168	Progress Energy, Inc.		3,719,267
				22,632,591
		Environmental Control—1.5%
	65,622	Mine Safety Appliances Co.		1,928,631
		Food—2.5%
	79,982	SUPERVALU, Inc.		1,191,732
	63,466	Sysco Corp.		2,001,717
				3,193,449
		Gas—11.6%
	91,285	Atmos Energy Corp.		2,700,210
	56,156	New Jersey Resources Corp.		2,118,766
	42,538	Northwest Natural Gas Co.		2,015,876

Number of Shares			Value
		Common Stocks (Continued)
	83,790	Piedmont Natural Gas Co., Inc.	$	2,304,225
	127,047	Vectren Corp.		3,177,446
	68,526	WGL Holdings, Inc.		2,449,119
				14,765,642
		Household Products/Wares—1.9%
	39,649	Kimberly-Clark Corp.		2,428,898
		Insurance—13.5%
	114,726	Arthur J. Gallagher & Co.		3,013,852
	108,489	Cincinnati Financial Corp.		3,081,088
	56,880	Erie Indemnity Co., Class A		2,634,113
	67,581	Harleysville Group, Inc.		2,163,944
	69,459	Mercury General Corp.		3,124,960
	214,728	Old Republic International Corp.		3,223,067
				17,241,024
		Machinery-Diversified—1.2%
	18,014	NACCO Industries, Inc., Class A		1,566,137
		Miscellaneous Manufacturing—2.2%
	115,896	Leggett & Platt, Inc.		2,842,929
		Office/Business Equipment—2.7%
	133,714	Pitney Bowes, Inc.		3,396,336
		Packaging & Containers—1.6%
	60,880	Sonoco Products Co.		2,016,954
		Pharmaceuticals—2.4%
	88,974	Eli Lilly & Co.		3,111,421
		Savings & Loans—3.6%
	182,690	Hudson City Bancorp, Inc.		2,429,777
	143,547	People's United Financial, Inc.		2,229,285
				4,659,062
		Telecommunications—6.7%
	143,653	AT&T, Inc.		3,743,597
	139,266	CenturyTel, Inc.		4,750,363
				8,493,960
		Water—1.9%
	135,735	Middlesex Water Co.		2,451,374
		Total Investments (Cost $113,412,985)—100.3%		127,846,009
		Liabilities in excess of other assets—(0.3%)		(421,937	)
		Net Assets—100.0%	$	127,424,072

See Notes to Financial Statements.

Schedule of Investments

PowerShares International Dividend Achievers^TM Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks and Other Equity Interests—99.9%
		Australia—0.8%
	48,661	BHP Billiton Ltd. ADR	$	3,542,034
		Bahamas—2.3%
	390,915	Teekay Corp.		9,792,421
		Belgium—0.8%
	42,758	Delhaize Group SA ADR		3,539,080
		Bermuda—2.6%
	153,990	Axis Capital Holdings Ltd.		4,799,868
	137,197	Max Capital Group Ltd.		3,059,493
	56,449	RenaissanceRe Holdings Ltd.		3,158,322
				11,017,683
		Brazil—2.8%
	91,345	Cia de Bebidas DAS Americas ADR		7,704,951
	100,913	Petroleo Brasileiro SA ADR		4,281,738
				11,986,689
		Canada—19.8%
	138,423	Bank of Nova Scotia		7,047,115
	152,106	Brookfield Asset Management, Inc., Class A		3,854,366
	73,095	Cameco Corp.		1,798,868
	52,242	Canadian National Railway Co.		3,123,549
	19,125	Canadian Natural Resources Ltd.		1,471,478
	52,654	Canadian Pacific Railway Ltd.		3,099,214
	130,101	Enbridge, Inc.		6,285,179
	43,243	Imperial Oil Ltd.		1,816,206
	199,920	Methanex Corp.		4,634,146
	151,847	Ritchie Bros. Auctioneers, Inc.		3,553,220
	191,843	Rogers Communications, Inc., Class B		6,831,529
	417,219	Shaw Communications, Inc., Class B		7,847,889
	65,746	Suncor Energy, Inc.		2,246,541
	140,031	Talisman Energy, Inc.		2,386,128
	264,303	Telus Corp.		9,332,539
	162,988	Thomson Reuters Corp.		5,848,009
	78,699	Toronto-Dominion Bank (The)		5,859,928
	216,340	TransCanada Corp.		7,615,168
				84,651,072
		Cayman Islands—0.9%
	273,740	Consolidated Water Co. Ltd.		3,873,421
		Chile—2.0%
	83,408	Empresa Nacional de Electricidad SA ADR		3,874,302
	133,774	Sociedad Quimica y Minera de Chile SA ADR		4,815,864
				8,690,166
		Denmark—0.6%
	28,628	Novo Nordisk A/S ADR		2,350,359

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
		France—3.2%
	154,306	Sanofi-Aventis SA ADR	$	5,263,378
	156,504	Total SA ADR		8,510,687
				13,774,065
		Germany—0.4%
	32,494	Fresenius Medical Care AG & Co. KGaA ADR		1,752,726
		Greece—0.6%
	92,885	Coca-Cola Hellenic Bottling Co. SA ADR		2,467,026
		Hong Kong—1.4%
	118,570	China Mobile Ltd. ADR		5,798,073
		India—0.5%
	5,127	HDFC Bank Ltd. ADR		764,538
	22,957	Infosys Technologies Ltd. ADR		1,374,665
				2,139,203
		Indonesia—1.3%
	160,330	Telekomunikasi Indonesia Tbk PT ADR		5,566,658
		Ireland—2.4%
	76,548	Cooper Industries PLC, Class A		3,758,507
	232,812	CRH PLC ADR		6,656,095
				10,414,602
		Israel—1.3%
	62,980	Elbit Systems Ltd.		3,882,717
	25,718	Teva Pharmaceutical Industries Ltd. ADR		1,510,418
				5,393,135
		Japan—1.3%
	91,927	Canon, Inc. ADR		4,199,225
	11,543	Kyocera Corp. ADR		1,134,100
				5,333,325
		Mexico—8.0%
	31,896	America Movil SAB de CV, Series L ADR		1,642,006
	21,506	Coca-Cola Femsa SAB de CV ADR		1,505,420
	288,050	Grupo Aeroportuario del Sureste SAB de CV ADR		15,940,687
	982,079	Telefonos de Mexico SAB de CV ADR		15,074,913
				34,163,026
		Netherlands—1.6%
	228,929	Unilever NV		6,927,391
		Norway—1.2%
	220,522	Statoil ASA ADR		5,330,017
		Russia—2.0%
	158,383	Mobile Telesystems OJSC ADR		8,750,661

See Notes to Financial Statements.

Schedule of Investments (Continued)

PowerShares International Dividend Achievers^TM Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
		Spain—7.0%
	992,370	Banco Santander SA ADR	$	12,245,846
	363,566	Repsol Ypf SA ADR		8,525,623
	132,445	Telefonica SA ADR		8,977,122
				29,748,591
		Switzerland—2.9%
	25,781	Alcon, Inc.		4,018,227
	106,578	Novartis AG ADR		5,419,491
	56,846	Syngenta AG ADR		2,871,291
				12,309,009
		Turkey—2.2%
	593,548	Turkcell Iletisim Hizmetleri AS ADR		9,597,671
		United Kingdom—25.3%
	209,825	AstraZeneca PLC ADR		9,280,560
	68,166	BHP Billiton PLC ADR		4,158,126
	182,970	BP PLC ADR		9,541,886
	123,161	British American Tobacco PLC ADR		7,814,565
	154,784	British Sky Broadcasting Group PLC ADR		5,792,017
	91,621	Diageo PLC ADR		6,243,055
	239,995	GlaxoSmithKline PLC ADR		8,949,414
	288,522	InterContinental Hotels Group PLC ADR		5,075,102
	220,020	National Grid PLC ADR		10,673,170
	387,895	Pearson PLC ADR		6,194,683
	231,765	Reed Elsevier PLC ADR		7,323,774
	46,626	Smith & Nephew PLC ADR		2,419,889
	265,443	Unilever PLC ADR		7,989,834
	443,995	Vodafone Group PLC ADR		9,856,689
	129,048	WPP PLC ADR		6,817,606
				108,130,370
		United States—4.7%
	78,756	ACE Ltd.		4,189,032
	42,391	Bunge Ltd.		2,244,603
	56,536	PartnerRe Ltd.		4,386,063
	33,231	Schlumberger Ltd.		2,373,358
	13,800	Shire PLC ADR		908,592
	178,422	Willis Group Holdings PLC		6,146,638
				20,248,286
		Total Investments (Cost $394,573,421)—99.9%		427,286,760
		Other assets less liabilities—0.1%		495,928
		Net Assets—100.0%	$	427,782,688

Investment Abbreviations:

ADR—American Depositary Receipt

See Notes to Financial Statements.

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Statements of Assets and Liabilities

April 30, 2010

	PowerShares Buyback Achievers^TM Portfolio			PowerShares Dividend Achievers^TM Portfolio			PowerShares Financial Preferred Portfolio			PowerShares High Yield Equity Dividend Achievers^TM Portfolio			PowerShares International Dividend Achievers^TM Portfolio
ASSETS:
Unaffiliated investments, at value	$	38,057,172		$	133,373,072		$	1,043,644,815		$	127,846,009		$	427,286,760
Affiliated investments, at value (Note 4)		—			—			660,940,782			—			—
Receivables:
Investments sold		1,648,786			694,318			14,962,514			10,211,259			38,886,724
Shares sold		1,118,213			660,298			—			7,594,812			10,694,595
Expense waivers		7,485			—			12,708			4,575			1,809
Dividends		892			268,181			5,918,872			234,019			1,211,665
Foreign tax reclaims		—			—			—			—			146,432
Other assets		3,002			3,000			2,000			3,000			3,502
Total Assets		40,835,550			134,998,869			1,725,481,691			145,893,674			478,231,487
LIABILITIES:
Due to custodian		6,064			6,303			45,553			63,244			435,401
Payables:
Investments purchased		1,622,900			810,006			9,212,710			10,668,639			38,942,378
Shares repurchased		1,118,213			660,299			—			7,594,812			10,694,595
Expense recapture		—			4,288			—			—			—
Accrued advisory fees		15,699			43,193			711,490			42,111			141,884
Accrued expenses		53,468			94,510			687,572			100,796			234,541
Total Liabilities		2,816,344			1,618,599			10,657,325			18,469,602			50,448,799
NET ASSETS	$	38,019,206		$	133,380,270		$	1,714,824,366		$	127,424,072		$	427,782,688
NET ASSETS CONSIST OF:
Shares of beneficial interest	$	59,105,672		$	140,192,636		$	1,493,474,068		$	258,174,196		$	620,360,201
Undistributed net investment income (loss)		(3,486	)		558,686			(3,284,219	)		(5,951	)		1,889,940
Accumulated net realized loss on investments and foreign currency related transactions		(24,456,751	)		(21,056,145	)		(53,022,446	)		(145,177,197	)		(227,180,792	)
Net unrealized appreciation on investments		3,373,771			13,685,093			277,656,963			14,433,024			32,713,339
Net Assets	$	38,019,206		$	133,380,270		$	1,714,824,366		$	127,424,072		$	427,782,688
Shares outstanding (unlimited amount authorized, $0.01 par value)		1,700,000			10,100,000			101,050,000			15,100,000			30,000,000
Net asset value	$	22.36		$	13.21		$	16.97		$	8.44		$	14.26
Share price	$	22.37		$	13.32		$	16.93		$	8.52		$	14.26
Unaffiliated investments, at cost	$	34,683,401		$	119,687,979		$	860,551,681		$	113,412,985		$	394,573,421
Affiliated investments, at cost	$	—		$	—		$	566,376,953		$	—		$	—

See Notes to Financial Statements.

Statements of Operations

Year Ended April 30, 2010

	PowerShares Buyback Achievers^TM Portfolio			PowerShares Dividend Achievers^TM Portfolio			PowerShares Financial Preferred Portfolio			PowerShares High Yield Equity Dividend Achievers^TM Portfolio			PowerShares International Dividend Achievers^TM Portfolio
INVESTMENT INCOME:
Unaffiliated dividend income	$	565,021		$	3,004,970		$	79,329,654		$	5,309,713		$	12,771,520
Affiliated dividend income		—			—			42,954,741			—			—
Foreign withholding tax		—			—			—			—			(1,083,772	)
Total Income		565,021			3,004,970			122,284,395			5,309,713			11,687,748
EXPENSES:
Advisory fees		167,787			416,862			6,830,817			423,163			1,451,325
Accounting & administration fees		64,668			64,668			337,045			64,668			88,066
Sub-licensing		33,557			104,221			1,366,158			105,791			362,831
Professional fees		31,193			33,403			77,739			34,508			44,657
Custodian & transfer agent fees		11,695			15,790			82,854			13,174			34,154
Trustees		5,161			7,473			45,719			7,527			15,632
Other expenses		12,276			27,052			140,027			36,816			77,489
Total Expenses		326,337			669,469			8,880,359			685,647			2,074,154
(Waivers)		(91,435	)		(44,165	)		(16,650	)		(50,903	)		(2,335	)
Net Expenses		234,902			625,304			8,863,709			634,744			2,071,819
Net Investment Income		330,119			2,379,666			113,420,686			4,674,969			9,615,929
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) from:
Investments		(2,184,984	)		(3,797,479	)		1,405,308			(6,798,502	)		(39,712,280	)
In-kind redemptions		6,813,411			716,539			64,972,403			14,236,392			29,551,741
Foreign currency related transactions		—			—			—			—			(423	)
Net realized gain (loss)		4,628,427			(3,080,940	)		66,377,711			7,437,890			(10,160,962	)
Net change in unrealized appreciation on investments		6,305,908			28,168,674			350,585,680			26,851,833			122,485,105
Net realized and unrealized gain on investments		10,934,335			25,087,734			416,963,391			34,289,723			112,324,143
Net increase in net assets resulting from operations	$	11,264,454		$	27,467,400		$	530,384,077		$	38,964,692		$	121,940,072

See Notes to Financial Statements.

Statements of Changes in Net Assets

	PowerShares Buyback Achievers^TM Portfolio						PowerShares Dividend Achievers^TM Portfolio						PowerShares Financial Preferred Portfolio
	Year Ended April 30, 2010			Year Ended April 30, 2009			Year Ended April 30, 2010			Year Ended April 30, 2009			Year Ended April 30, 2010			Year Ended April 30, 2009
OPERATIONS:
Net investment income	$	330,119		$	582,297		$	2,379,666		$	2,203,526		$	113,420,686		$	43,970,503
Net realized gain (loss) on investments and foreign currency related transactions		4,628,427			(16,495,774	)		(3,080,940	)		(17,861,143	)		66,377,711			(79,802,465	)
Net change in unrealized appreciation (depreciation) on investments		6,305,908			(88,168	)		28,168,674			(12,388,077	)		350,585,680			(65,037,561	)
Net increase (decrease) in net assets resulting from operations		11,264,454			(16,001,645	)		27,467,400			(28,045,694	)		530,384,077			(100,869,523	)
Undistributed net investment income (loss) included in the price of units issued and redeemed		6,239			(41,505	)		92,598			182,813			(1,698,335	)		502,058
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income		(467,441	)		(456,573	)		(2,653,314	)		(1,482,708	)		(112,572,843	)		(46,382,363	)
Return of capital		—			—			—			—			(4,876,161	)		(744,661	)
Total distributions to shareholders		(467,441	)		(456,573	)		(2,653,314	)		(1,482,708	)		(117,449,004	)		(47,127,024	)
SHAREHOLDER TRANSACTIONS:
Proceeds from shares sold		26,715,685			—			54,083,996			77,327,973			658,426,601			710,379,663
Value of shares repurchased		(26,949,276	)		(17,217,725	)		(30,968,874	)		(22,099,826	)		(130,181,507	)		(25,864,980	)
Net income (loss) equalization		(6,239	)		41,505			(92,598	)		(182,813	)		1,698,335			(502,058	)
Net increase (decrease) in net assets resulting from shares transactions		(239,830	)		(17,176,220	)		23,022,524			55,045,334			529,943,429			684,012,625
Increase (Decrease) in Net Assets		10,563,422			(33,675,943	)		47,929,208			25,699,745			941,180,167			536,518,136
NET ASSETS:
Beginning of year		27,455,784			61,131,727			85,451,062			59,751,317			773,644,199			237,126,063
End of year	$	38,019,206		$	27,455,784		$	133,380,270		$	85,451,062		$	1,714,824,366		$	773,644,199
Undistributed net investment income (loss) at end of year	$	(3,486	)	$	133,836		$	558,686		$	838,109		$	(3,284,219	)	$	(3,293,978	)
CHANGES IN SHARES OUTSTANDING:
Shares sold		1,350,000			—			4,450,000			6,800,000			41,950,000			59,400,000
Shares repurchased		(1,350,000	)		(1,000,000	)		(2,650,000	)		(2,200,000	)		(8,700,000	)		(2,800,000	)
Shares outstanding, beginning of year		1,700,000			2,700,000			8,300,000			3,700,000			67,800,000			11,200,000
Shares outstanding, end of year		1,700,000			1,700,000			10,100,000			8,300,000			101,050,000			67,800,000

See Notes to Financial Statements.

	PowerShares High Yield Equity Dividend Achievers^TM Portfolio						PowerShares International Dividend Achievers^TM Portfolio
	Year Ended April 30, 2010			Year Ended April 30, 2009			Year Ended April 30, 2010			Year Ended April 30, 2009
OPERATIONS:
Net investment income	$	4,674,969		$	6,705,369		$	9,615,929		$	14,435,715
Net realized gain (loss) on investments and foreign currency related transactions		7,437,890			(130,934,983	)		(10,160,962	)		(220,533,133	)
Net change in unrealized appreciation (depreciation) on investments		26,851,833			46,776,383			122,485,105			(62,969,469	)
Net increase (decrease) in net assets resulting from operations		38,964,692			(77,453,231	)		121,940,072			(269,066,887	)
Undistributed net investment income (loss) included in the price of units issued and redeemed		1,096			(12,060	)		446,981			(238,634	)
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income		(4,674,671	)		(6,711,618	)		(12,740,323	)		(15,651,696	)
Return of capital		(344,802	)		(423,105	)		—			—
Total distributions to shareholders		(5,019,473	)		(7,134,723	)		(12,740,323	)		(15,651,696	)
SHAREHOLDER TRANSACTIONS:
Proceeds from shares sold		64,896,968			55,194,101			130,274,190			169,724,730
Value of shares repurchased		(58,264,459	)		(67,836,421	)		(68,274,834	)		(180,052,073	)
Net income (loss) equalization		(1,096	)		12,060			(446,981	)		238,634
Net increase (decrease) in net assets resulting from shares transactions		6,631,413			(12,630,260	)		61,552,375			(10,088,709	)
Increase (Decrease) in Net Assets		40,577,728			(97,230,274	)		171,199,105			(295,045,926	)
NET ASSETS:
Beginning of year		86,846,344			184,076,618			256,583,583			551,629,509
End of year	$	127,424,072		$	86,846,344		$	427,782,688		$	256,583,583
Undistributed net investment income (loss) at end of year	$	(5,951	)	$	(6,249	)	$	1,889,940		$	3,220,322
CHANGES IN SHARES OUTSTANDING:
Shares sold		8,550,000			8,300,000			9,700,000			12,000,000
Shares repurchased		(7,650,000	)		(10,300,000	)		(5,000,000	)		(14,800,000	)
Shares outstanding, beginning of year		14,200,000			16,200,000			25,300,000			28,100,000
Shares outstanding, end of year		15,100,000			14,200,000			30,000,000			25,300,000

Financial Highlights

PowerShares Buyback Achievers^TM Portfolio

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

PowerShares Dividend Achievers^TM Portfolio

	Year Ended April 30,												For the Period September 15, 2005* Through
	2010			2009			2008			2007			April 30, 2006
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	10.30		$	16.15		$	17.52		$	15.63		$	14.84
Net investment income**		0.27			0.36			0.37			0.32			0.17
Net realized and unrealized gain (loss) on investments		2.96			(5.92	)		(1.41	)		1.88			0.78
Total from investment operations		3.23			(5.56	)		(1.04	)		2.20			0.95
Distributions to shareholders from:
Net investment income		(0.32	)		(0.29	)		(0.33	)		(0.31	)		(0.16	)
Net asset value at end of period	$	13.21		$	10.30		$	16.15		$	17.52		$	15.63
Share price at end of period***	$	13.32		$	10.30
NET ASSET VALUE, TOTAL RETURN****		31.76	%		(34.84	)%		(6.00	)%		14.26	%		6.45	%
SHARE PRICE TOTAL RETURN****		31.76	%		(34.84	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	133,380		$	85,451		$	59,751		$	70,079		$	23,449
Ratio to average net assets of:
Expenses, after (Waivers) and/or Recapture		0.60	%		0.60	%		0.60	%		0.60	%		0.67	%†
Expenses, prior to (Waivers) and/or Recapture		0.64	%		0.74	%		0.72	%		0.92	%		1.02	%†
Net investment income, after (Waivers) and/or Recapture		2.28	%		3.11	%		2.15	%		1.94	%		1.81	%†
Portfolio turnover rate ††		18	%		31	%		8	%		9	%		8	%
Undistributed net investment income (loss) included in price of units issued and redeemed**#	$	0.01		$	0.03		$	(0.01	)	$	0.03		$	0.00	^(a)

* Commencement of Investment Operations.

** Based on average shares outstanding.

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

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

† Annualized.

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

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

(a) Amount represents less than $0.005.

See Notes to Financial Statements.

Financial Highlights (Continued)

PowerShares Financial Preferred Portfolio

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

PowerShares High Yield Equity Dividend Achievers^TM Portfolio

	Year Ended April 30,
	2010			2009			2008			2007			2006
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of year	$	6.12		$	11.36		$	15.82		$	15.07		$	14.41
Net investment income**		0.32			0.43			0.62			0.54			0.53
Net realized and unrealized gain (loss) on investments		2.35			(5.21	)		(4.42	)		0.84			0.61
Total from investment operations		2.67			(4.78	)		(3.80	)		1.38			1.14
Distributions to shareholders from:
Net investment income		(0.33	)		(0.43	)		(0.63	)		(0.60	)		(0.48	)
Return of capital		(0.02	)		(0.03	)		(0.03	)		(0.03	)		—
Total distributions		(0.35	)		(0.46	)		(0.66	)		(0.63	)		(0.48	)
Net asset value at end of year	$	8.44		$	6.12		$	11.36		$	15.82		$	15.07
Share price at end of year***	$	8.52		$	6.12
NET ASSET VALUE, TOTAL RETURN****		44.59	%		(42.88	)%		(24.67	)%		9.28	%		7.92	%
SHARE PRICE TOTAL RETURN****		44.58	%		(42.88	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of year (000's omitted)	$	127,424		$	86,846		$	184,077		$	439,820		$	459,690
Ratio to average net assets of:
Expenses, after (Waivers) and/or Recapture		0.60	%		0.60	%		0.60	%		0.60	%		0.61	%
Expenses, prior to (Waivers) and/or Recapture		0.65	%		0.62	%		0.56	%		0.60	%		0.65	%
Net investment income, after (Waivers) and/or Recapture		4.42	%		5.24	%		4.35	%		3.47	%		3.49	%
Portfolio turnover rate ††		57	%		77	%		42	%		20	%		9	%
Undistributed net investment income included in price of units issued and redeemed**#	$	0.00	^(a)	$	0.00	^(a)	$	0.02		$	0.00	^(a)	$	0.02

* Commencement of Investment Operations.

** Based on average shares outstanding.

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

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

† Annualized.

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

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

(a) Amount represents less than $0.005.

See Notes to Financial Statements.

Financial Highlights (Continued)

PowerShares International Dividend Achievers^TM Portfolio

	Year Ended April 30,												For the Period September 15, 2005* Through
	2010			2009			2008			2007			April 30, 2006
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	10.14		$	19.63		$	20.12		$	16.92		$	14.96
Net investment income**		0.35			0.52			0.68			0.53			0.28
Net realized and unrealized gain (loss) on investments		4.24			(9.46	)		(0.61	)		3.20			1.88
Total from investment operations		4.59			(8.94	)		0.07			3.73			2.16
Distributions to shareholders from:
Net investment income		(0.47	)		(0.55	)		(0.56	)		(0.53	)		(0.20	)
Net asset value at end of period	$	14.26		$	10.14		$	19.63		$	20.12		$	16.92
Share price at end of period***	$	14.26		$	10.15
NET ASSET VALUE, TOTAL RETURN****		45.77	%		(46.44	)%		0.34	%		22.56	%		14.50	%
SHARE PRICE TOTAL RETURN****		45.62	%		(46.30	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	427,783		$	256,584		$	551,630		$	553,200		$	170,843
Ratio to average net assets of:
Expenses, after (Waivers) and/or Recapture		0.57	%		0.57	%		0.58	%		0.60	%		0.62	%†
Expenses, prior to (Waivers) and/or Recapture		0.57	%		0.57	%		0.56	%		0.62	%		0.69	%†
Net investment income, after (Waivers) and/or Recapture		2.65	%		3.87	%		3.28	%		2.98	%		3.06	%†
Portfolio turnover rate ††		63	%		50	%		43	%		22	%		8	%
Undistributed net investment income (loss) included in price of units issued and redeemed**#	$	0.02		$	(0.01	)	$	(0.02	)	$	0.11		$	0.04

* Commencement of Investment Operations.

** Based on average shares outstanding.

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

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

† Annualized.

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

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

See Notes to Financial Statements.

Notes to Financial Statements

PowerShares Exchange-Traded Fund Trust

April 30, 2010

Note 1. Organization

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

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

PowerShares Financial Preferred Portfolio				"Financial Preferred Portfolio"

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

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

Each portfolio (the "Fund" and collectively the "Funds") represents a separate series of the Trust. The shares of the Funds are referred to herein as "Shares" or "Fund's Shares." Each Fund's Shares are listed and traded on the NYSE Arca, Inc. The Funds' market prices may differ to some degree from the net asset value ("NAV") of the Shares of each Fund. Unlike conventional mutual funds, each Fund issues and redeems Shares on a continuous basis, at NAV, only in a large specified number of Shares, each called a "Creation Unit." Creation Units are issued and redeemed generally in-kind for securities included in the relevant index. Except when aggregated in Creation Units, the Shares are not individually redeemable securities of the Funds.

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

Dividend Achievers^TM Portfolio				Broad Dividend Achievers^TM Index

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

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

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

Note 2. Significant Accounting Policies

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

April 30, 2010

A. Security Valuation

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

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

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

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

April 30, 2010

B. Other Risks

Replication Management Risk. The Funds are not "actively" managed and do not seek returns in excess of their respective Underlying Indices. Therefore, they would not necessarily sell a stock because the stock's issuer was in financial trouble unless that stock is removed from its Underlying Index.

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

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

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

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

Geographic Risk. Funds that are less diversified across geographic regions, countries, industries or individual companies are generally riskier than more diversified funds. The economies and financial markets of certain regions can be interdependent and may all decline at the same time.

Sampling Risk. With respect to Financial Preferred Portfolio, the Fund's use of a representative sampling approach will result in holding a smaller number of securities than are in its Underlying Index. As a result, an adverse development respecting an issuer of securities held by the Fund could result in a greater decline

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

April 30, 2010

in NAV than would be the case if each 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.

C. Federal Income Taxes

D. Investment Income and Investment Transactions

E. Expenses

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, any distribution fees or expenses and extraordinary expenses.

F. Dividends and Distributions to Shareholders

Each Fund (except for the High Yield Equity Dividend Achievers^TM Portfolio and Financial Preferred Portfolio, which declare and pay dividends, if any, monthly) declares and pays dividends from net investment income, if any, to its shareholders quarterly and records on ex-dividend date. Each Fund distributes net realized taxable capital gains, if any, generally annually in cash and records on ex-dividend date. Such distributions on a tax basis are determined in conformity with income tax regulations which may differ from GAAP. Distributions in excess of tax basis earnings and profits, if any, are reported in such Fund's financial statements as a tax return of capital at fiscal period-end.

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

April 30, 2010

G. Equalization

Note 3. Investment Advisory Agreement and Other Agreements

The Trust has entered into an Investment Advisory Agreement with Invesco PowerShares Capital Management LLC (the "Adviser") pursuant to which the Adviser has overall responsibility as the Funds' investment adviser for the selection and ongoing monitoring of the Funds' investments, managing the Funds' business affairs and providing certain clerical, bookkeeping and other administrative services. Each Fund has agreed to pay the Adviser an annual fee of 0.40% of the Fund's average daily net assets except for the Buyback Achievers^TM Portfolio and Financial Preferred Portfolio, which pay the Adviser an annual fee of 0.50% of that Fund's average daily net assets.

The Adviser has entered into an Amended and Restated Excess Expense Agreement ("Excess Expense Agreement") with the Trust, pursuant to which the Adviser has agreed to waive fees and/or pay Fund expenses to the extent necessary to prevent the operating expenses of each Fund (excluding interest expense, brokerage commissions and other trading expenses, sub-licensing fees, offering costs, taxes and extraordinary expenses) from exceeding 0.50% of the Fund's average daily net assets per year (0.60% of the Fund's average daily net assets per year for the Buyback Achievers^TM Portfolio and Financial Preferred Portfolio) (the "Expense Cap"), at least until August 31, 2011. Offering costs excluded from the Expense Cap are: (a) initial legal fees pertaining to the Funds' Shares offered for sale; (b) initial Securities and Exchange Commission and state registration fees; and (c) initial fees paid to be listed on an exchange.

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

April 30, 2010

The amounts available for potential future recapture by the Adviser under the Excess Expense Agreement and the expiration schedule at April 30, 2010 are as follows:

	Total Potential		Potential Recapture Amounts Expiring
	Recapture Amounts		04/30/11		04/30/12		04/30/13
Buyback Achievers^TM Portfolio	$	253,845	$	64,191	$	98,219	$	91,435
Dividend Achievers^TM Portfolio		238,491		83,876		98,990		55,625
Financial Preferred Portfolio		16,650		—		—		16,650
High Yield Equity Dividend Achievers^TM Portfolio		101,625		1,765		48,203		51,657
International Dividend Achievers^TM Portfolio		2,335		—		—		2,335

Licensing Fee Agreements

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

Fund				Licensor
Buyback Achievers^TM Portfolio				Mergent, Inc.

Dividend Achievers^TM Portfolio				Mergent, Inc.

Financial Preferred Portfolio				Wells Fargo Securities, LLC

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

International Dividend Achievers^TM Portfolio				Mergent, Inc.

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

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

Note 4. Investments in Affiliates

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

April 30, 2010

Financial Preferred Portfolio

	Value 04/30/09		Purchases at Cost		Proceeds from Sales			Change in Unrealized Appreciation (Depreciation)			Realized Gain		Value 04/30/10		Dividend Income
Axis Capital Holdings Ltd., 7.25%, Series A	$	7,409,623	$	5,786,098	$	(1,231,467	)	$	2,972,124		$	414,103	$	15,350,481	$	989,263
Bank of America Corp., 6.20%, Series D		16,416,448		15,057,149		(3,378,063	)		9,272,367			1,549,001		38,916,902		2,539,916
Bank of America Corp., 7.25%, Series J		19,567,010		23,022,705		(6,968,831	)		14,537,430			1,808,439		51,966,753		3,515,818
Barclays Bank PLC, 8.13%, Series 5 (United Kingdom)		46,892,296		88,258,275		(11,313,847	)		25,612,644			6,995,940		156,445,308		8,992,586
HSBC Finance Corp., 6.36%		11,008,920		13,934,546		(2,068,066	)		7,714,828			1,459,580		32,049,808		1,780,669
HSBC USA, Inc., 6.50%, Series H		10,760,558		15,089,567		(2,547,325	)		3,856,898			735,956		27,895,654		1,362,211
ING Groep NV, 6.13% (Netherlands)		13,072,319		12,765,139		(2,393,032	)		7,832,824			1,522,220		32,799,470		2,467,550
ING Groep NV, 6.38% (Netherlands)		19,867,866		20,314,148		(4,325,423	)		11,946,826			1,859,563		49,662,980		3,689,501
ING Groep NV, 7.38% (Netherlands)		26,781,492		29,107,919		(4,982,857	)		17,386,135			3,143,673		71,436,362		5,391,565
National Bank of Greece SA, 9.00% (Greece)		19,699,057		15,448,956		(10,759,901	)		(806,875	)		182,126		23,763,363		2,976,431
PartnerRe Ltd., 6.75%, Series C		9,494,529		6,945,053		(1,368,291	)		2,692,976			370,429		18,134,696		1,033,940
Prudential PLC, 6.50% (United Kingdom)		7,362,383		6,718,052		(1,901,194	)		4,099,429			686,260		16,964,930		1,040,587
Prudential PLC, 6.75% (United Kingdom)		6,245,253		5,674,244		(1,886,067	)		3,776,564			570,074		14,380,068		901,289
RenaissanceRe Holdings Ltd., 6.08%, Series C		6,791,448		4,908,842		(3,310,696	)		1,674,160			315,448		10,379,202		789,061
RenaissanceRe Holdings Ltd., 6.60%, Series D		9,145,818		6,557,111		(4,546,429	)		1,820,165			347,092		13,323,757		1,035,787
Santander Finance SA Unipersonal, 10.50%, Series 10 (Spain)		—		53,991,041		(3,322,577	)		3,185,097			1,190,142		55,043,703		2,302,224
U.S. Bancorp, 7.88%, Series D		19,137,635		16,410,213		(7,105,503	)		3,086,606			898,394		32,427,345		2,146,343
Total Investments in Affiliates		249,652,655		339,989,058		(73,409,569	)		120,660,198			24,048,440		660,940,782		42,954,741

Note 5. Additional Valuation Information

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

April 30, 2010

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.

	Investment in Securities
	Level 1		Level 2		Level 3		Total
Buyback Achievers^TM Portfolio
Equity Securities	$	37,996,998	$	—	$	—	$	37,996,998
Money Market Fund		60,174		—		—		60,174
Total Investments		38,057,172		—		—		38,057,172
Dividend Achievers^TM Portfolio
Equity Securities		133,363,398		—		—		133,363,398
Money Market Fund		9,674		—		—		9,674
Total Investments		133,373,072		—		—		133,373,072
Financial Preferred Portfolio
Equity Securities		1,697,826,977		—		—		1,697,826,977
Money Market Fund		6,758,620		—		—		6,758,620
Total Investments		1,704,585,597		—		—		1,704,585,597
High Yield Equity Dividend Achievers^TM Portfolio
Equity Securities		127,846,009		—		—		127,846,009
International Dividend Achievers^TM Portfolio
Equity Securities		427,286,760		—		—		427,286,760

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

April 30, 2010

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, 2010 and 2009:

	2010				2009
	Ordinary Income		Return of Capital		Ordinary Income		Return of Capital
Buyback Achievers^TM Portfolio	$	467,441	$	—	$	456,573	$	—
Dividend Achievers^TM Portfolio		2,653,314		—		1,482,708		—
Financial Preferred Portfolio⁽¹⁾		86,530,325		4,876,161		16,849,393		744,661
High Yield Equity Dividend Achievers^TM Portfolio		4,674,671		344,802		6,711,618		423,105
International Dividend Achievers^TM Portfolio		12,740,323		—		15,651, 696		—

⁽¹⁾ Tax year-end is October 31.

Tax Components of Net Assets at Fiscal Year-End:

	Undistributed Ordinary Income		Temporary Book/Tax Differences			Net Unrealized Appreciation		Capital Loss Carryforward			Post-October Deferrals*			Shares of Beneficial Interest		Total Net Assets
Buyback Achievers^TM Portfolio	$	148	$	(3,634	)	$	3,315,410	$	(22,220,755	)	$	(2,177,635	)	$	59,105,672	$	38,019,206
Dividend Achievers^TM Portfolio		562,987		(4,301	)		11,400,851		(16,367,686	)		(2,404,217	)		140,192,636		133,380,270
Financial Preferred Portfolio⁽¹⁾		—		(16,695	)		132,364,126		(41,375,677	)		—			1,282,095,262		1,373,067,016
High Yield Equity Dividend Achievers^TM Portfolio		—		(5,951	)		14,171,761		(141,087,479	)		(3,828,455	)		258,174,196		127,424,072
International Dividend Achievers^TM Portfolio		1,902,183		(12,243	)		28,165,754		(207,367,956	)		(15,265,251	)		620,360,201		427,782,688

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

⁽¹⁾ Tax year-end is October 31.

The following Funds have capital loss carryforward amounts as of April 30, 2010, which expire on April 30 of each year listed below:

	2014		2015		2016		2017		2018		Total**
Buyback Achievers^TM Portfolio	$	—	$	178,870	$	9,098,882	$	800,254	$	12,142,749	$	22,220,755
Dividend Achievers^TM Portfolio		7,896		—		50,943		1,716,151		14,592,696		16,367,686
Financial Preferred Portfolio⁽¹⁾		—		2,445,445		29,895,674		9,034,558		—		41,375,677
High Yield Equity Dividend Achievers^TM Portfolio		2,613,033		7,009,598		5,162,362		81,487,358		44,815,128		141,087,479
International Dividend Achievers^TM Portfolio		183,478		221,461		1,975,339		59,472,841		145,514,837		207,367,956

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

⁽¹⁾ Tax year-end is October 31.

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

April 30, 2010

Note 7. Investment Transactions

	Purchases		Sales
Buyback Achievers^TM Portfolio	$	7,752,309	$	8,054,664
Dividend Achievers^TM Portfolio		21,836,839		18,481,607
Financial Preferred Portfolio		311,117,899		325,725,421
High Yield Equity Dividend Achievers^TM Portfolio		60,148,547		64,403,223
International Dividend Achievers^TM Portfolio		226,948,097		232,082,372

For the fiscal year ended April 30, 2010, in-kind transactions associated with creations and redemptions were as follows:

	Securities Received		Securities Delivered
Buyback Achievers^TM Portfolio	$	26,314,632	$	26,397,048
Dividend Achievers^TM Portfolio		51,172,327		30,665,903
Financial Preferred Portfolio		656,225,170		128,279,735
High Yield Equity Dividend Achievers^TM Portfolio		69,667,529		58,570,136
International Dividend Achievers^TM Portfolio		175,636,818		111,129,885

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

At April 30, 2010 the aggregate cost and the net unrealized appreciation of investments for tax purposes were as follows:

	Cost		Net Unrealized Appreciation		Gross Unrealized Appreciation		Gross Unrealized (Depreciation)
Buyback Achievers^TM Portfolio	$	34,741,762	$	3,315,410	$	4,141,092	$	(825,682	)
Dividend Achievers^TM Portfolio		121,972,221		11,400,851		13,082,930		(1,682,079	)
Financial Preferred Portfolio⁽¹⁾		1,243,644,389		132,364,126		142,116,076		(9,751,950	)
High Yield Equity Dividend Achievers^TM Portfolio		113,674,248		14,171,761		14,677,256		(505,495	)
International Dividend Achievers^TM Portfolio		399,121,006		28,165,754		36,554,277		(8,388,523	)

⁽¹⁾ Tax year-end is October 31.

Note 8. Reclassification of Permanent Differences

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

April 30, 2010

and Shares of beneficial interest. These reclassifications had no effect on the net assets of each Fund. For the fiscal year ended April 30, 2010, the reclassifications were as follows:

	Undistributed Net Investment Income (Loss)			Undistributed Net Realized Gain (Loss)			Shares of Beneficial Interest
Buyback Achievers^TM Portfolio	$	(6,239	)	$	(6,730,417	)	$	6,736,656
Dividend Achievers^TM Portfolio		(98,373	)		381,358			(282,985	)
Financial Preferred Portfolio⁽¹⁾		5,736,412			(28,475,587	)		22,739,175
High Yield Equity Dividend Achievers^TM Portfolio		343,706			(13,870,427	)		13,526,721
International Dividend Achievers^TM Portfolio		1,347,031			(27,999,595	)		26,652,564

(1) Tax year-end is October 31.

Note 9. Trustees' Fees

The Funds compensate each Trustee who is not an employee of the Adviser or its affiliates. The "Interested" Trustees of the Trust do not receive any Trustees' fees.

Note 10. Capital

Note 11. Indemnifications

Report of Independent Registered Public Accounting Firm

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

/s/ PricewaterhouseCoopers LLP
New York, New York
June 28, 2010

Tax Information

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

Each Fund designates the following amounts or, if subsequently determined to be different the maximum amount allowable for its fiscal year ended April 30, 2010:

Federal Income Tax Information

	Qualified Dividend Income*			Corporate Dividends Received Deduction*
Buyback Achievers^TM Portfolio		100	%		100	%
Dividend Achievers^TM Portfolio		100	%		100	%
Financial Preferred Portfolio⁽¹⁾		100	%		92	%
High Yield Equity Dividend Achievers^TM Portfolio		100	%		100	%
International Dividend Achievers^TM Portfolio		100	%		0	%

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

				Foreign Source Income				Foreign Taxes
International Dividend Achievers^TM Portfolio				$	12,771,211			$	1,083,766

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

⁽¹⁾ Tax year-end is October 31.

Proxy Results

A Special Meeting of Shareholders was held on March 22, 2010 to elect seven individuals to the Board of Trustees of PowerShares Exchange-Traded Fund Trust.

The results of the voting on the above matter were as follows:

Trustees	Votes For		Withheld/ Abstentions*
Ronn R. Bagge		426,624,761		8,241,402
Todd J. Barre		426,876,044		7,990,119
H. Bruce Bond		426,681,223		8,184,940
Kevin M. Carome		425,386,415		9,479,748
Marc M. Kole		426,529,715		8,336,448
Philip M. Nussbaum		426,531,618		8,334,545
Donald H. Wilson		426,691,769		8,174,394

* Includes Non-Votes.

Trustees and Officers

The Trustees and officers information is current as of April 30, 2010.

Name, Address and Age of
Independent Trustees

Position(s) Held
with Trust

Term of
Office
and
Length
of Time
Served*

Principal Occupation(s)
During Past 5 Years

Number of
Portfolios
in Fund
Complex
Overseen by
Independent
Trustees

Other Directorships
Held by Independent
Trustees

Ronn R. Bagge
(52)
YQA Capital Management LLC
1755 S. Naperville Rd.,
Suite 100
Wheaton, IL 60187

Trustee

Since 2003

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

111

None

Todd J. Barre
(52)
c/o Invesco PowerShares Capital Management LLC
301 West Roosevelt Road
Wheaton, IL 60187

Trustee

Since 2010

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

111

None

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

Trustees and Officers (Continued)

Name, Address and Age of
Independent Trustees

Position(s) Held
with Trust

Term of
Office
and
Length
of Time
Served*

Principal Occupation(s)
During Past 5 Years

Number of
Portfolios
in Fund
Complex
Overseen by
Independent
Trustees

Other Directorships
Held by Independent
Trustees

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

Trustee

Since 2006

111

None

Philip M. Nussbaum
(48)
c/o Invesco PowerShares Capital Management LLC
301 West Roosevelt Road
Wheaton, IL 60187

Trustee

Since 2003

111

None

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

Trustees and Officers (Continued)

Name, Address and Age of
Independent Trustees

Position(s) Held
with Trust

Term of
Office
and
Length
of Time
Served*

Principal Occupation(s)
During Past 5 Years

Number of
Portfolios
in Fund
Complex
Overseen by
Independent
Trustees

Other Directorships
Held by Independent
Trustees

Donald H. Wilson
(50)
c/o Invesco PowerShares Capital Management LLC
301 West Roosevelt Road
Wheaton, IL 60187

Trustee

Since 2006

111

None

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

Trustees and Officers (Continued)

Name, Address and Age of
Interested Trustees

Position(s) Held
with Trust

Term of
Office
and
Length of
Time
Served*

Principal Occupation(s)
During Past 5 Years

Number of
Portfolios
in Fund
Complex
Overseen by
Interested
Trustees

Other Directorships
Held by Interested
Trustees

H. Bruce Bond
(46)
Invesco PowerShares Capital Management LLC
301 West Roosevelt Road
Wheaton, IL 60187

Chairman of the Board and Trustee

Since 2003

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

111

None

Kevin M, Carome
(53)
Invesco Ltd.
Two Peachtree Pointe
1555 Peachtree St., N.E.,
Suite 1800
Atlanta, GA 30309

Trustee

Since 2010

111

None

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

Trustees and Officers (Continued)

Name, Address, and
Age of Executive Officer

Position(s)
Held with
Trust

Length of
Time
Served*

Principal Occupation(s) During Past 5 Years

Andrew Schlossberg
(35)
Invesco Management Group, Inc.
11 Greenway Plaza
Suite 100
Houston, Texas 77046

President

Since 2009

Bruce T. Duncan
(55)
Invesco PowerShares Capital Management LLC
301 West Roosevelt Road
Wheaton, IL 60187

Treasurer and Secretary

Treasurer since 2006; Secretary since 2008

Benjamin Fulton
(48)
Invesco PowerShares Capital Management LLC
301 West Roosevelt Road
Wheaton, IL 60187

Vice President

Since 2009

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

Peter Hubbard
(28)
Invesco PowerShares Capital Management LLC
301 West Roosevelt Road
Wheaton, IL 60187

Vice President

Since 2009

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

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

Trustees and Officers (Continued)

Name, Address, and
Age of Executive Officer

Position(s)
Held with
Trust

Length of
Time
Served*

Principal Occupation(s) During Past 5 Years

David Warren
(52)
Invesco Trimark Ltd.
5140 Yonge Street
Suite 900
Toronto, Ontario
M2N 6X7

Vice President

Since 2009

Todd Spillane
(51)
Invesco PowerShares Capital Management LLC
11 Greenway Plaza
Suite 100
Houston, Texas 77046

Chief Compliance Officer

Since 2010

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

Availability of Additional Information About the Trustees

The Statement of Additional Information includes additional information about the Trustees and is available, without charge, upon request at 800.337.4246.

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

Board Considerations Regarding Continuation of Investment Advisory Agreement

PowerShares Dynamic Market Portfolio

PowerShares Dynamic OTC Portfolio

PowerShares Golden Dragon Halter USX China Portfolio

PowerShares High Yield Equity Dividend Achievers^TM Portfolio

PowerShares WilderHill Clean Energy Portfolio

PowerShares Dynamic Large Cap Growth Portfolio

PowerShares Dynamic Large Cap Value Portfolio

PowerShares Dynamic Mid Cap Growth Portfolio

PowerShares Dynamic Mid Cap Value Portfolio

PowerShares Dynamic Small Cap Growth Portfolio

PowerShares Dynamic Small Cap Value Portfolio

PowerShares Dynamic Biotechnology & Genome Portfolio

PowerShares Dynamic Food & Beverage Portfolio

PowerShares Dynamic Leisure and Entertainment Portfolio

PowerShares Dynamic Media Portfolio

PowerShares Dynamic Networking Portfolio

PowerShares Dynamic Pharmaceuticals Portfolio

PowerShares Dynamic Semiconductors Portfolio

PowerShares Dynamic Software Portfolio

PowerShares Zacks Micro Cap Portfolio

PowerShares Aerospace & Defense Portfolio

PowerShares Dynamic Telecommunications & Wireless Portfolio

PowerShares Value Line Timeliness Select Portfolio

PowerShares Dividend Achievers^TM Portfolio

PowerShares International Dividend Achievers^TM Portfolio

PowerShares Zacks Small Cap Portfolio

PowerShares Dynamic Building and Construction Portfolio

PowerShares Dynamic Energy Exploration and Production Portfolio

PowerShares Dynamic Insurance Portfolio

PowerShares Dynamic Oil and Gas Services Portfolio

PowerShares Dynamic Retail Portfolio

PowerShares Dynamic Utilities Portfolio

PowerShares Lux Nanotech Portfolio

PowerShares FTSE RAFI US 1000 Portfolio

PowerShares FTSE RAFI US 1500 Small-Mid Portfolio

PowerShares Water Resources Portfolio

PowerShares Dynamic Energy Sector Portfolio

PowerShares Dynamic Financial Sector Portfolio

PowerShares Dynamic Healthcare Sector Portfolio

PowerShares Dynamic Industrials Sector Portfolio

PowerShares Dynamic Large Cap Portfolio

PowerShares Dynamic MagniQuant Portfolio

PowerShares Dynamic Mid Cap Portfolio

PowerShares Dynamic Small Cap Portfolio

PowerShares Dynamic Technology Sector Portfolio

PowerShares Buyback Achievers^TM Portfolio

PowerShares Cleantech Portfolio

PowerShares Dynamic Banking Portfolio

PowerShares Dynamic Basic Materials Sector Portfolio

PowerShares Dynamic Consumer Discretionary Sector Portfolio

PowerShares Dynamic Consumer Staples Sector Portfolio

PowerShares Dynamic Healthcare Services Portfolio

PowerShares Financial Preferred Portfolio

PowerShares Global Listed Private Equity Portfolio

PowerShares DWA Technical Leaders Portfolio

PowerShares Value Line Industry Rotation Portfolio

PowerShares WilderHill Progressive Energy Portfolio

Board Considerations Regarding Continuation of Investment Advisory Agreement (Continued)

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

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

Board Considerations Regarding Continuation of Investment Advisory Agreement (Continued)

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

• higher than the median expense ratio of its ETF peer funds (except for the net expense ratio of each of PowerShares Dynamic OTC Portfolio, PowerShares FTSE RAFI US 1000 Portfolio and PowerShares International Dividend AchieversTM Portfolio, which was less than the median expense ratio of its ETF peer funds); and

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

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

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

Board Considerations Regarding Continuation of Investment Advisory Agreement (Continued)

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.

This page intentionally left blank

PROXY VOTING POLICIES AND PROCEDURES

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

QUARTERLY PORTFOLIOS

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

301 West Roosevelt Road
Wheaton, IL 60187

800.983.0903
www.invescopowershares.com

2010 Annual Report to Shareholders

April 30, 2010

PowerShares Dynamic Banking Portfolio

PowerShares Dynamic Biotechnology & Genome Portfolio

PowerShares Dynamic Building & Construction Portfolio

PowerShares Dynamic Energy Exploration & Production Portfolio

PowerShares Dynamic Food & Beverage Portfolio

PowerShares Dynamic Healthcare Services Portfolio

PowerShares Dynamic Insurance 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

PowerShares Dynamic Software Portfolio

Table of Contents

The Market Environment					2

Manager's Analysis					4

Frequency Distribution of Discounts & Premiums					34

Fees and Expenses					36

Industry Portfolios

Schedules of Investments

PowerShares Dynamic Banking Portfolio					38

PowerShares Dynamic Biotechnology & Genome Portfolio					39

PowerShares Dynamic Building & Construction Portfolio					40

PowerShares Dynamic Energy Exploration & Production Portfolio					41

PowerShares Dynamic Food & Beverage Portfolio					42

PowerShares Dynamic Healthcare Services Portfolio					43

PowerShares Dynamic Insurance Portfolio					44

PowerShares Dynamic Leisure and Entertainment Portfolio					45

PowerShares Dynamic Media Portfolio					46

PowerShares Dynamic Networking Portfolio					47

PowerShares Dynamic Oil & Gas Services Portfolio					48

PowerShares Dynamic Pharmaceuticals Portfolio					49

PowerShares Dynamic Retail Portfolio					50

PowerShares Dynamic Semiconductors Portfolio					51

PowerShares Dynamic Software Portfolio					52

Statements of Assets and Liabilities					54

Statements of Operations					56

Statements of Changes in Net Assets					58

Financial Highlights					64

Notes to Financial Statements					72

Report of Independent Registered Public Accounting Firm					86

Tax Information					87

Proxy Results					88

Trustees and Officers					89

Board Considerations Regarding Continuation of Investment Advisory Agreement					96

The Market Environment

This page intentionally left blank

Manager's Analysis

PowerShares Dynamic Banking Portfolio (ticker: PJB)

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

For the fiscal year ended April 30, 2010, the Fund returned 17.91%. Over this same year, the Index returned 19.25%, while the S&P SuperComposite Commercial Banks Index returned 61.29%. The Fund benefited from positive performance in regional banks, diversified banks and thrifts & mortgage finance sub-industries. Fund performance was positive within each sub-industry in which it was invested.

Industry Breakdown (% of the Fund's

Net Assets) as of April 30, 2010

Super-Regional Banks-U.S.	21.2
Commercial Banks-Central U.S.	19.9
Commercial Banks-Eastern U.S.	16.4
S&L/Thrifts-Eastern U.S.	13.3
Commercial Banks-Southern U.S.	11.5
S&L/Thrifts-Central U.S.	7.6
Commercial Banks-Western U.S.	5.5
Diversified Banking Institution	4.5
Money Market Fund	0.3
Other	(0.2	)

Style Allocation (% of the Fund's

Total Investments) as of April 30, 2010

Small-Cap Value					40.9
Large-Cap Growth					14.8
Small-Cap Growth					13.1
Mid-Cap Value					12.6
Large-Cap Value					11.0
Mid-Cap Growth					7.6

Top Ten Fund Holdings (% of the Fund's

Net Assets) as of April 30, 2010

*Security*
PNC Financial Services Group, Inc.					5.6
Fifth Third Bancorp					5.4
Wells Fargo & Co.					5.4
M&T Bank Corp.					5.0
TFS Financial Corp.					4.9
U.S. Bancorp					4.8
Commerce Bancshares, Inc.					4.6
JPMorgan Chase & Co.					4.5
S&T Bancorp, Inc.					3.3
WesBanco, Inc.					3.1
Total					46.6

Manager's Analysis (Continued)

PowerShares Dynamic Banking Portfolio (ticker: PJB)

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

Fund Performance History (%)							As of April 30, 2010
	Avg Ann^††						Fund Inception^†
	1 Year			3 Year			Avg Ann^††			Cumulative
Index
Dynamic Banking Intellidex^SM Index		19.25	%		-12.31	%		-11.67	%		-35.63	%
S&P SuperComposite Commercial Banks Index		61.29	%		-16.09	%		-13.14	%		-39.63	%
Dow Jones U.S. Total Markets Bank Index		52.53	%		-23.81	%		-19.91	%		-54.86	%
S&P 500^® Index		38.82	%		-5.04	%		-1.13	%		-3.99	%
Fund
NAV Return		17.91	%		-13.29	%		-12.65	%		-38.12	%
Share Price Return		18.21	%		-13.30	%		-12.65	%		-38.11	%

Fund Inception: October 12, 2006

Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2011. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.72%. In the Financial Highlights section of this Shareholder Report, the Fund's total net (subsidized) operating expense ratio was determined to be 0.65% while the Fund's total gross operating expense ratio was 1.07%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.

The S&P SuperComposite Commercial Banks Index, Dow Jones U.S. Total Markets Bank Index, and S&P 500^® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 77, 50, and 500 common stocks, respectively.

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

^†† Average annualized.

Manager's Analysis

PowerShares Dynamic Biotechnology & Genome Portfolio (ticker: PBE)

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

For the fiscal year ended April 30, 2010, the Fund returned 53.19%. Over this same year, the Index returned 55.14%, while the S&P SuperComposite Biotech Index returned 12.48%. The Fund benefited from positive performance in biotechnology, life sciences tools & services and pharmaceuticals sub-industries. The Fund suffered negative performance in health care equipment sub-industry. The Fund underperformed the Index, due to higher turnover levels in less liquid holdings, which led to increased tracking inaccuracy in the Fund.

Industry Breakdown (% of the Fund's

Net Assets) as of April 30, 2010

Biotechnology	58.8
Pharmaceuticals	19.6
Electronics	8.3
Healthcare-Products	7.8
Chemicals	5.6
Money Market Fund	0.0
Other	(0.1	)

Style Allocation (% of the Fund's

Total Investments) as of April 30, 2010

Small-Cap Growth					52.3
Mid-Cap Growth					35.1
Large-Cap Value					8.9
Large-Cap Growth					3.7

Top Ten Fund Holdings (% of the Fund's

Net Assets) as of April 30, 2010

*Security*
Sigma-Aldrich Corp.					5.6
Waters Corp.					5.4
Millipore Corp.					5.0
Alexion Pharmaceuticals, Inc.					5.0
Life Technologies Corp.					4.8
Amgen, Inc.					4.5
Biogen Idec, Inc.					4.3
OSI Pharmaceuticals, Inc.					3.9
Halozyme Therapeutics, Inc.					3.8
Gilead Sciences, Inc.					3.7
Total					46.0

Manager's Analysis (Continued)

PowerShares Dynamic Biotechnology & Genome Portfolio (ticker: PBE)

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

Fund Performance History (%)							As of April 30, 2010
	Avg Ann^††						Fund Inception^†
	1 Year			3 Year			Avg Ann^††			Cumulative
Index
Dynamic Biotechnology & Genome Intellidex^SM Index		55.14	%		1.49	%		6.66	%		36.76	%
S&P SuperComposite Biotech Index		12.48	%		-0.66	%		5.18	%		27.63	%
S&P 500^® Index		38.82	%		-5.04	%		2.03	%		10.20	%
Fund
NAV Return		53.19	%		0.79	%		6.27	%		34.34	%
Share Price Return		53.63	%		0.81	%		6.27	%		34.32	%

Fund Inception: June 23, 2005

Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses during previous fiscal periods, absent which, performance during those fiscal periods would have been lower. While the Adviser has contractually agreed to waive and/or pay certain Fund expenses through August 31, 2011, the Fund is currently subject to recapture, which may result in an increased expense ratio. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.62%. In the Financial Highlights section of this Shareholder Report, the Fund's total net operating expense ratio was determined to be 0.63% while the Fund's total gross operating expense ratio was 0.61%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.

The S&P SuperComposite Biotech Index and S&P 500^® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 14 and 500 common stocks, respectively.

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

^†† Average annualized.

Manager's Analysis

PowerShares Dynamic Building & Construction Portfolio (ticker: PKB)

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

For the fiscal year ended April 30, 2010, the Fund returned 27.65%. Over this same year, the Index returned 28.60%, while the S&P SuperComposite Construction & Engineering Index returned 22.06%. The Fund benefited from positive performance in building products, homebuilding and home improvement retail sub-industries. The Fund suffered negative performance in diversified chemicals, leisure products and environmental & facilities services sub-industries.

Industry Breakdown (% of the Fund's

Net Assets) as of April 30, 2010

Engineering & Construction	29.8
Building Materials	24.7
Home Builders	12.6
Retail	12.2
Machinery-Diversified	4.2
Office Furnishings	3.5
Real Estate	2.9
Metal Fabricate/Hardware	2.7
Environmental Control	2.6
Miscellaneous Manufacturing	2.6
Commercial Services	2.2
Money Market Fund	0.1
Other	(0.1	)

Style Allocation (% of the Fund's

Total Investments) as of April 30, 2010

Small-Cap Growth					30.1
Small-Cap Value					25.1
Mid-Cap Value					19.5
Mid-Cap Growth					15.9
Large-Cap Growth					9.4

Top Ten Fund Holdings (% of the Fund's

Net Assets) as of April 30, 2010

Owens Corning					6.1
Jacobs Engineering Group, Inc.					5.2
Fluor Corp.					5.1
D.R. Horton, Inc.					4.9
Lowe's Cos., Inc.					4.8
Home Depot, Inc. (The)					4.7
URS Corp.					4.6
NVR, Inc.					4.2
NACCO Industries, Inc.					4.2
Interface, Inc.					3.5
Total					47.3

Manager's Analysis (Continued)

PowerShares Dynamic Building & Construction Portfolio (ticker: PKB)

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

Fund Performance History (%)							As of April 30, 2010
	Avg Ann^††						Fund Inception^†
	1 Year			3 Year			Avg Ann^††			Cumulative
Index
Dynamic Building & Construction Intellidex^SM Index		28.60	%		-8.72	%		-1.03	%		-4.55	%
S&P SuperComposite Construction & Engineering Index		22.06	%		0.13	%		10.23	%		55.03	%
S&P SuperComposite Homebuilders Index		26.29	%		-18.18	%		-18.24	%		-59.59	%
S&P 500^® Index		38.82	%		-5.04	%		1.76	%		8.17	%
Fund
NAV Return		27.65	%		-9.26	%		-1.92	%		-8.38	%
Share Price Return		27.42	%		-9.26	%		-1.94	%		-8.44	%

Fund Inception: October 26, 2005

Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2011. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 1.06%. In the Financial Highlights section of this Shareholder Report, the Fund's total net (subsidized) operating expense ratio was determined to be 0.63% while the Fund's total gross operating expense ratio was 0.76%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.

The S&P SuperComposite Construction & Engineering Index, S&P Super Composite Homebuilders Index, and S&P 500^® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 9, 13, and 500 common stocks, respectively.

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

^†† Average annualized.

Manager's Analysis

PowerShares Dynamic Energy Exploration & Production Portfolio (ticker: PXE)

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

For the fiscal year ended April 30, 2010, the Fund returned 40.87%. Over this same year, the Index returned 41.87%, while the S&P SuperComposite Oil & Gas Exploration & Production Index returned 45.19%. The Fund benefited from positive performance in oil & gas exploration & production, integrated oil & gas and gas utilities sub-industries. The Fund suffered negative performance in oil & gas refining & marketing sub-industry.

Industry Breakdown (% of the Fund's

Net Assets) as of April 30, 2010

Oil Companies-Exploration & Production					71.8
Oil Companies-Integrated					22.9
Gas-Distribution					5.2
Money Market Fund					0.1
Other					0.0

Style Allocation (% of the Fund's

Total Investments) as of April 30, 2010

Large-Cap Value					40.4
Mid-Cap Growth					19.9
Small-Cap Value					19.7
Mid-Cap Value					13.7
Small-Cap Growth					6.3

Top Ten Fund Holdings (% of the Fund's

Net Assets) as of April 30, 2010

*Security*
ConocoPhillips					5.5
Chevron Corp.					5.1
Occidental Petroleum Corp.					5.0
Hess Corp.					4.8
Exxon Mobil Corp.					4.7
Apache Corp.					4.4
Chesapeake Energy Corp.					4.0
Anadarko Petroleum Corp.					4.0
CNX Gas Corp.					3.6
Pioneer Natural Resources Co.					3.4
Total					44.5

Manager's Analysis (Continued)

PowerShares Dynamic Energy Exploration & Production Portfolio (ticker: PXE)

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

Fund Performance History (%)							As of April 30, 2010
	Avg Ann^††						Fund Inception^†
	1 Year			3 Year			Avg Ann^††			Cumulative
Index
Dynamic Energy Exploration & Production Intellidex^SM Index		41.87	%		-3.65	%		4.13	%		20.03	%
S&P SuperComposite Oil & Gas Exploration & Production Index		45.19	%		5.98	%		8.90	%		46.76	%
S&P 500^® Index		38.82	%		-5.04	%		1.76	%		8.17	%
Fund
NAV Return		40.87	%		-4.25	%		3.56	%		17.10	%
Share Price Return		41.08	%		-4.22	%		3.54	%		16.96	%

Fund Inception: October 26, 2005

Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2011. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.69%. In the Financial Highlights section of this Shareholder Report, the Fund's total net (subsidized) operating expense ratio was determined to be 0.63% while the Fund's total gross operating expense ratio was 0.76%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.

The S&P SuperComposite Oil & Gas Exploration & Production Index and S&P 500^® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 24 and 500 common stocks, respectively.

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

^†† Average annualized.

Manager's Analysis

PowerShares Dynamic Food & Beverage Portfolio (ticker: PBJ)

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

For the fiscal year ended April 30, 2010, the Fund returned 28.08%. Over this same year, the Index returned 29.17%, while the S&P SuperComposite Food Beverage & Tobacco Index returned 36.08%. The Fund benefited from positive performance in packaged foods & meats, restaurants and soft drinks sub-industries. The Fund suffered negative performance in industrial conglomerates sub-industry.

Industry Breakdown (% of the Fund's

Net Assets) as of April 30, 2010

Food-Miscellaneous/Diversified					34.9
Retail-Restaurants					18.7
Beverages-Non-alcoholic					12.4
Food-Retail					8.1
Beverages-Wine/Spirits					5.8
Food-Meat Products					5.4
Food-Canned					3.2
Brewery					3.0
Food-Confectionery					3.0
Alternative Waste Technologies					2.9
Food-Wholesale/Distribution					2.6
Money Market Fund					0.0
Other					0.0

Style Allocation (% of the Fund's

Total Investments) as of April 30, 2010

Large-Cap Value					26.3
Large-Cap Growth					20.7
Mid-Cap Value					16.9
Small-Cap Value					16.3
Mid-Cap Growth					11.1
Small-Cap Growth					8.7

Top Ten Fund Holdings (% of the Fund's

Net Assets) as of April 30, 2010

*Security*
Yum! Brands, Inc.					5.8
Starbucks Corp.					5.2
McDonald's Corp.					5.1
Kellogg Co.					4.8
H.J. Heinz Co.					4.7
Coca-Cola Co. (The)					4.6
ConAgra Foods, Inc.					4.6
General Mills, Inc.					4.5
Del Monte Foods Co.					3.2
Diamond Foods, Inc.					3.1
Total					45.6

Manager's Analysis (Continued)

PowerShares Dynamic Food & Beverage Portfolio (ticker: PBJ)

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

Fund Performance History (%)							As of April 30, 2010
	Avg Ann^††						Fund Inception^†
	1 Year			3 Year			Avg Ann^††			Cumulative
Index
Dynamic Food & Beverage Intellidex^SM Index		29.17	%		-0.23	%		3.92	%		20.53	%
S&P SuperComposite Food Beverage & Tobacco Index		36.08	%		4.87	%		9.28	%		53.56	%
S&P 500^® Index		38.82	%		-5.04	%		2.03	%		10.20	%
Fund
NAV Return		28.08	%		-0.92	%		3.24	%		16.75	%
Share Price Return		28.06	%		-0.92	%		3.26	%		16.82	%

Fund Inception: June 23, 2005

Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2011. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.71%. In the Financial Highlights section of this Shareholder Report, the Fund's total net (subsidized) operating expense ratio was determined to be 0.63% while the Fund's total gross operating expense ratio was 0.74%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.

The S&P SuperComposite Food Beverage & Tobacco Index and S&P 500^® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 42 and 500 common stocks, respectively.

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

^††Average annualized.

Manager's Analysis

PowerShares Dynamic Healthcare Services Portfolio (ticker: PTJ)

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

For the fiscal year ended April 30, 2010, the Fund returned 39.40%. Over this same year, the Index returned 40.37%, while the S&P SuperComposite Health Care Providers and Services Index returned 42.84%. The Fund benefited from positive performance in health care services, managed health care and health care facilities sub-industries. The Fund suffered negative performance in drug retail sub-industry.

Industry Breakdown (% of the Fund's

Net Assets) as of April 30, 2010

Medical-Wholesale Drug Distribution	15.2
Medical-HMO	14.0
Medical-Outpatient/Home Medicine	13.8
Medical Labs & Testing Services	12.9
Medical-Hospitals	12.5
Medical-Nursing Homes	8.4
Pharmacy Services	7.1
Physical Therapy/Rehabilitation Centers	5.7
Diversified Operations/ Commercial Services	2.7
Physician Practice Management	2.6
Human Resources	2.6
Dialysis Centers	2.6
Money Market Fund	0.1
Other	(0.2	)

Style Allocation (% of the Fund's

Total Investments) as of April 30, 2010

Mid-Cap Growth					27.3
Small-Cap Value					24.6
Large-Cap Growth					14.4
Small-Cap Growth					14.3
Large-Cap Value					13.7
Mid-Cap Value					5.7

Top Ten Fund Holdings (% of the Fund's

Net Assets) as of April 30, 2010

*Security*
AmerisourceBergen Corp.					5.2
McKesson Corp.					5.2
Laboratory Corp. of America Holdings					5.1
Cardinal Health, Inc.					4.8
Quest Diagnostics, Inc.					4.8
Aetna, Inc.					4.7
Medco Health Solutions, Inc.					4.4
UnitedHealth Group, Inc.					4.2
Health Management Associates, Inc.					3.3
Universal Health Services, Inc.					3.1
Total					44.8

Manager's Analysis (Continued)

PowerShares Dynamic Healthcare Services Portfolio (ticker: PTJ)

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

Fund Performance History (%)							As of April 30, 2010
	Avg Ann^††						Fund Inception^†
	1 Year			3 Year			Avg Ann^††			Cumulative
Index
Dynamic Healthcare Services Intellidex^SM Index		40.37	%		-7.80	%		-3.30	%		-11.22	%
S&P SuperComposite Health Care Providers and Services Index		42.84	%		-5.11	%		-1.55	%		-5.46	%
Dow Jones U.S. Select Health Care Providers Index		41.35	%		-6.21	%		-2.49	%		-8.62	%
S&P 500^® Index		38.82	%		-5.04	%		-1.13	%		-3.99	%
Fund
NAV Return		39.40	%		-8.46	%		-4.02	%		-13.54	%
Share Price Return		39.40	%		-8.48	%		-4.02	%		-13.54	%

Fund Inception: October 12, 2006

Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2011. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 1.10%. In the Financial Highlights section of this Shareholder Report, the Fund's total net (subsidized) operating expense ratio was determined to be 0.65% while the Fund's total gross operating expense ratio was 1.38%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.

The S&P SuperComposite Health Care Providers and Services Index, Dow Jones U.S. Select Health Care Providers Index, and S&P 500^® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 26, 135, and 500 common stocks, respectively.

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

^†† Average annualized.

Manager's Analysis

PowerShares Dynamic Insurance Portfolio (ticker: PIC)

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

For the fiscal year ended April 30, 2010, the Fund returned 34.85%. Over this same year, the Index returned 35.97%, while the S&P SuperComposite Insurance Index returned 45.10%. The Fund benefited from positive performance in property & casualty insurance, life & health insurance and multi-line insurance sub-industries. Fund performance was positive within each sub-industry in which it was invested.

Industry Breakdown (% of the Fund's

Net Assets) as of April 30, 2010

Property/Casualty Insurance	46.0
Multi-line Insurance	23.3
Life/Health Insurance	21.9
Investment Management/ Advisor Services	3.3
Insurance Brokers	2.9
Reinsurance	2.7
Money Market Fund	0.2
Other	(0.3	)

Style Allocation (% of the Fund's

Total Investments) as of April 30, 2010

Small-Cap Value					38.9
Large-Cap Value					34.9
Mid-Cap Value					19.0
Large-Cap Growth					4.7
Small-Cap Growth					2.5

Top Ten Fund Holdings (% of the Fund's

Net Assets) as of April 30, 2010

*Security*
MetLife, Inc.					5.7
Hartford Financial Services Group, Inc. (The)					5.3
Progressive Corp. (The)					5.3
Chubb Corp. (The)					4.8
Allstate Corp. (The)					4.8
Aflac, Inc.					4.7
Loews Corp.					4.7
Travelers Cos., Inc. (The)					4.4
National Financial Partners Corp.					3.3
FBL Financial Group, Inc.					3.2
Total					46.2

Manager's Analysis (Continued)

PowerShares Dynamic Insurance Portfolio (ticker: PIC)

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

Fund Performance History (%)							As of April 30, 2010
	Avg Ann^††						Fund Inception^†
	1 Year			3 Year			Avg Ann^††			Cumulative
Index
Dynamic Insurance Intellidex^SM Index		35.97	%		-4.36	%		1.89	%		8.81	%
S&P SuperComposite Insurance Index		45.10	%		-19.75	%		-10.31	%		-38.72	%
S&P 500^® Index		38.82	%		-5.04	%		1.76	%		8.17	%
Fund
NAV Return		34.85	%		-4.99	%		1.26	%		5.82	%
Share Price Return		35.53	%		-4.96	%		1.28	%		5.89	%

Fund Inception: October 26, 2005

Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2011. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.98%. In the Financial Highlights section of this Shareholder Report, the Fund's total net (subsidized) operating expense ratio was determined to be 0.63% while the Fund's total gross operating expense ratio was 1.23%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.

The S&P SuperComposite Insurance Index and S&P 500^® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 55 and 500 common stocks, respectively.

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

^†† Average annualized.

Manager's Analysis

PowerShares Dynamic Leisure and Entertainment Portfolio (ticker: PEJ)

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

For the fiscal year ended April 30, 2010, the Fund returned 55.81%. Over this same year, the Index returned 58.23%, while the S&P SuperComposite Hotels, Restaurants & Leisure Index returned 48.23%. The Fund benefited from positive performance in restaurants, movies & entertainment and internet retail sub-industries. Fund performance was positive within each sub-industry in which it was invested. The Fund slightly underperformed the Index due to a spin-off of an Index constituent.

Industry Breakdown (% of the Fund's

Net Assets) as of April 30, 2010

Retail	44.7
Media	20.5
Entertainment	13.5
Lodging	8.5
Leisure Time	5.5
Internet	4.6
Commercial Services	2.7
Money Market Fund	0.0
Other	(0.0	)

Style Allocation (% of the Fund's

Total Investments) as of April 30, 2010

Large-Cap Growth					26.6
Small-Cap Value					25.5
Mid-Cap Growth					21.0
Small-Cap Growth					13.2
Mid-Cap Value					8.5
Large-Cap Value					5.2

Top Ten Fund Holdings (% of the Fund's

Net Assets) as of April 30, 2010

*Security*
Marriott International, Inc.					5.8
Yum! Brands, Inc.					5.4
Viacom, Inc.					5.1
Walt Disney Co. (The)					5.1
Scripps Networks Interactive, Inc.					4.9
Starbucks Corp.					4.9
McDonald's Corp.					4.7
Expedia, Inc.					4.5
HSN, Inc.					3.3
Ruby Tuesday, Inc.					3.2
Total					46.9

Manager's Analysis (Continued)

PowerShares Dynamic Leisure and Entertainment Portfolio (ticker: PEJ)

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

Fund Performance History (%)							As of April 30, 2010
	Avg Ann^††						Fund Inception^†
	1 Year			3 Year			Avg Ann^††			Cumulative
Index
Dynamic Leisure and Entertainment Intellidex^SM Index		58.23	%		-1.54	%		3.93	%		20.58	%
S&P SuperComposite Hotels Restaurants & Leisure Index		48.23	%		3.94	%		8.00	%		45.06	%
S&P 500^® Index		38.82	%		-5.04	%		2.03	%		10.20	%
Fund
NAV Return		55.81	%		-1.83	%		3.48	%		18.07	%
Share Price Return		56.29	%		-1.80	%		3.51	%		18.25	%

Fund Inception: June 23, 2005

Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2011. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 1.65%. In the Financial Highlights section of this Shareholder Report, the Fund's total net (subsidized) operating expense ratio was determined to be 0.63% while the Fund's total gross operating expense ratio was 1.06%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.

The S&P SuperComposite Hotels, Restaurants & Leisure Index and S&P 500^® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 46 and 500 common stocks, respectively.

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

^†† Average annualized.

Manager's Analysis

PowerShares Dynamic Media Portfolio (ticker: PBS)

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

For the fiscal year ended April 30, 2010, the Fund returned 66.55%. Over this same year, the Index returned 69.27%, while the S&P SuperComposite Media Index returned 60.50%. The Fund benefited from positive performance in movies & entertainment, cable & satellite and publishing sub-industries. Fund performance was positive within each sub-industry in which it was invested. The Fund slightly underperformed the Index due to a spin-off of an Index constituent.

Industry Breakdown (% of the Fund's

Net Assets) as of April 30, 2010

Multimedia	28.0
Cable/Satellite TV	12.5
Publishing-Newspapers	7.5
Web Portals/ISP	6.6
Radio	6.2
Advertising Agencies	5.6
Publishing-Books	4.6
Retail-Discount	3.3
Telecommunication Services	3.2
Printing-Commercial	3.0
Television	3.0
Advertising Sales	2.9
Direct Marketing	2.9
Schools	2.9
Music	2.8
Broadcast Services/Program	2.7
Computer Services	2.3
Money Market Fund	0.1
Other	(0.1	)

Style Allocation (% of the Fund's

Total Investments) as of April 30, 2010

Large-Cap Growth					24.3
Small-Cap Value					22.9
Large-Cap Value					17.3
Mid-Cap Growth					15.9
Mid-Cap Value					13.4
Small-Cap Growth					6.2

Top Ten Fund Holdings (% of the Fund's

Net Assets) as of April 30, 2010

*Security*
Comcast Corp.					5.2
Viacom, Inc.					5.2
Walt Disney Co. (The)					5.1
News Corp.					5.0
Time Warner, Inc.					5.0
DIRECTV					4.7
Google, Inc.					4.3
McGraw-Hill Cos., Inc. (The)					4.3
E.W. Scripps Co.					3.4
Entercom Communications Corp.					3.4
Total					45.6

Manager's Analysis (Continued)

PowerShares Dynamic Media Portfolio (ticker: PBS)

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

Fund Performance History (%)							As of April 30, 2010
	Avg Ann^††						Fund Inception^†
	1 Year			3 Year			Avg Ann^††			Cumulative
Index
Dynamic Media Intellidex^SM Index		69.27	%		-4.87	%		-0.70	%		-3.36	%
S&P SuperComposite Media Index		60.50	%		-5.35	%		0.95	%		4.66	%
S&P 500^® Index		38.82	%		-5.04	%		2.03	%		10.20	%
Fund
NAV Return		66.55	%		-5.13	%		-1.13	%		-5.37	%
Share Price Return		66.59	%		-5.06	%		-1.10	%		-5.23	%

Fund Inception: June 23, 2005

Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2011. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 1.22%. In the Financial Highlights section of this Shareholder Report, the Fund's total net (subsidized) operating expense ratio was determined to be 0.63% while the Fund's total gross operating expense ratio was 0.77%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.

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

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

^†† Average annualized.

Manager's Analysis

PowerShares Dynamic Networking Portfolio (ticker: PXQ)

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

For the fiscal year ended April 30, 2010, the Fund returned 55.46%. Over this same year, the Index returned 56.52%, while the S&P SuperComposite Communications Equipment Index returned 26.86%. The Fund benefited from positive performance in communications equipment, systems software and semiconductors sub-industries. Fund performance was positive within each sub-industry in which it was invested.

Industry Breakdown (% of the Fund's

Net Assets) as of April 30, 2010

Telecommunications	45.3
Internet	16.8
Semiconductors	15.0
Software	12.9
Electronics	5.0
Electrical Components & Equipment	2.7
Computers	2.4
Money Market Fund	0.0
Other	(0.1	)

Style Allocation (% of the Fund's

Total Investments) as of April 30, 2010

Mid-Cap Growth					34.7
Small-Cap Growth					31.0
Large-Cap Growth					20.8
Small-Cap Value					8.8
Large-Cap Value					4.7

Top Ten Fund Holdings (% of the Fund's

Net Assets) as of April 30, 2010

*Security*
VMware, Inc.					5.6
Amphenol Corp.					5.0
Cisco Systems, Inc.					4.9
Broadcom Corp.					4.9
Citrix Systems, Inc.					4.9
Juniper Networks, Inc.					4.5
Symantec Corp.					4.5
McAfee, Inc.					3.9
Oclaro, Inc.					3.9
Acme Packet, Inc.					3.8
Total					45.9

Manager's Analysis (Continued)

PowerShares Dynamic Networking Portfolio (ticker: PXQ)

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

Fund Performance History (%)							As of April 30, 2010
	Avg Ann^††						Fund Inception^†
	1 Year			3 Year			Avg Ann^††			Cumulative
Index
Dynamic Networking Intellidex^SM Index		56.52	%		4.89	%		7.97	%		45.10	%
S&P SuperComposite Communications Equipment Index		26.86	%		-3.03	%		3.49	%		18.01	%
S&P 500^® Index		38.82	%		-5.04	%		2.03	%		10.20	%
Fund
NAV Return		55.46	%		4.11	%		7.32	%		40.91	%
Share Price Return		55.45	%		4.16	%		7.36	%		41.11	%

Fund Inception: June 23, 2005

Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2011. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 1.92%. In the Financial Highlights section of this Shareholder Report, the Fund's total net (subsidized) operating expense ratio was determined to be 0.63% while the Fund's total gross operating expense ratio was 0.95%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.

The S&P SuperComposite Communications Equipment Index and S&P 500^® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 35 and 500 common stocks, respectively.

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

^†† Average annualized.

Manager's Analysis

PowerShares Dynamic Oil & Gas Services Portfolio (ticker: PXJ)

The PowerShares Dynamic Oil & Gas Services Portfolio (the "Fund") seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of the Dynamic Oil Services Intellidex^SM Index (the "Index").

For the fiscal year ended April 30, 2010, the Fund returned 38.41%. Over this same year, the Index returned 39.58%, while the S&P SuperComposite Energy Equipment & Services Index returned 52.36%. The Fund benefited from positive performance in oil & gas equipment & services and oil & gas drilling sub-industries. The Fund suffered negative performance in oil & gas storage & transportation and construction & engineering sub-industries.

Industry Breakdown (% of the Fund's

Net Assets) as of April 30, 2010

Oil-Field Services	45.2
Oil Field Machinery & Equipment	25.3
Oil & Gas Drilling	20.4
Transportation-Marine	3.4
Seismic Data Collection	3.2
Transportation-Services	2.6
Money Market Fund	0.0
Other	(0.1	)

Style Allocation (% of the Fund's

Total Investments) as of April 30, 2010

Small-Cap Growth					25.2
Small-Cap Value					22.5
Mid-Cap Value					20.0
Large-Cap Growth					14.2
Mid-Cap Growth					13.5
Large-Cap Value					4.6

Top Ten Fund Holdings (% of the Fund's

Net Assets) as of April 30, 2010

*Security*
FMC Technologies, Inc.					5.4
Schlumberger Ltd.					5.3
Rowan Cos., Inc.					5.2
Oceaneering International, Inc.					4.9
Halliburton Co.					4.6
National Oilwell Varco, Inc.					4.6
Helmerich & Payne, Inc.					4.5
Cameron International Corp.					4.3
Gulfmark Offshore, Inc.					3.4
ION Geophysical Corp.					3.2
Total					45.4

Manager's Analysis (Continued)

PowerShares Dynamic Oil & Gas Services Portfolio (ticker: PXJ)

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

Fund Performance History (%)							As of April 30, 2010
	Avg Ann^††						Fund Inception^†
	1 Year			3 Year			Avg Ann^††			Cumulative
Index
Dynamic Oil Services Intellidex^SM Index		39.58	%		-6.54	%		2.79	%		13.23	%
S&P SuperComposite Energy Equipment & Services Index		52.36	%		-2.64	%		5.77	%		28.72	%
S&P 500^® Index		38.82	%		-5.04	%		1.76	%		8.17	%
Fund
NAV Return		38.41	%		-7.12	%		2.28	%		10.72	%
Share Price Return		38.13	%		-7.13	%		2.27	%		10.65	%

Fund Inception: October 26, 2005

Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses during previous fiscal periods, absent which, performance would have been lower. The Adviser has contractually agreed to waive and/or pay certain Fund expenses through August 31, 2011. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.61%. In the Financial Highlights section of this Shareholder Report, the Fund's total net and total gross operating expense ratio was determined to be 0.63%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.

The S&P SuperComposite Energy Equipment & Services Index and S&P 500^® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 25 and 500 common stocks, respectively.

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

^†† Average annualized.

Manager's Analysis

PowerShares Dynamic Pharmaceuticals Portfolio (ticker: PJP)

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

For the fiscal year ended April 30, 2010, the Fund returned 42.69%. Over this same year, the Index returned 43.75%, while the S&P SuperComposite Pharmaceuticals Index returned 32.00%. The Fund benefited from positive performance in pharmaceuticals, personal products and health care equipment sub-industries. The Fund suffered negative performance in biotechnology sub-industry.

Industry Breakdown (% of the Fund's

Net Assets) as of April 30, 2010

Medical-Drugs	49.7
Medical-Biomedical/Genetics	19.3
Medical-Generic Drugs	14.9
Medical Products	9.9
Consumer Products-Miscellaneous	3.2
Therapeutics	3.0
Money Market Fund	0.0
Other	(0.0	)

Style Allocation (% of the Fund's

Total Investments) as of April 30, 2010

Large-Cap Value					31.7
Large-Cap Growth					19.0
Small-Cap Growth					18.5
Mid-Cap Value					12.6
Mid-Cap Growth					12.0
Small-Cap Value					6.2

Top Ten Fund Holdings (% of the Fund's

Net Assets) as of April 30, 2010

*Security*
Bristol-Myers Squibb Co.					5.0
Johnson & Johnson					5.0
Eli Lilly & Co.					5.0
Amgen, Inc.					4.9
Pfizer, Inc.					4.7
Merck & Co., Inc.					4.6
Abbott Laboratories					4.6
Gilead Sciences, Inc.					4.0
Salix Pharmaceuticals Ltd.					3.7
Perrigo Co.					3.3
Total					44.8

Manager's Analysis (Continued)

PowerShares Dynamic Pharmaceuticals Portfolio (ticker: PJP)

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

Fund Performance History (%)							As of April 30, 2010
	Avg Ann^††						Fund Inception^†
	1 Year			3 Year			Avg Ann^††			Cumulative
Index
Dynamic Pharmaceuticals Intellidex^SM Index		43.75	%		1.53	%		7.24	%		40.37	%
S&P SuperComposite Pharmaceuticals Index		32.00	%		-2.70	%		1.92	%		9.62	%
S&P 500^® Index		38.82	%		-5.04	%		2.03	%		10.20	%
Fund
NAV Return		42.69	%		0.77	%		6.59	%		36.29	%
Share Price Return		42.51	%		0.77	%		6.59	%		36.32	%

Fund Inception: June 23, 2005

Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2011. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.66%. In the Financial Highlights section of this Shareholder Report, the Fund's total net (subsidized) operating expense ratio was determined to be 0.63% while the Fund's total gross operating expense ratio was 0.74%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.

The S&P SuperComposite Pharmaceuticals Index and S&P 500^® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 26 and 500 common stocks, respectively.

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

^†† Average annualized.

Manager's Analysis

PowerShares Dynamic Retail Portfolio (ticker: PMR)

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

For the fiscal year ended April 30, 2010, the Fund returned 28.49%. Over this same year, the Index returned 29.69%, while the S&P SuperComposite Retailing Index returned 45.14%. The Fund benefited from positive performance in apparel retail, home furnishing retail and specialty stores sub-industries. The Fund suffered negative performance in drug retail sub-industry.

Industry Breakdown (% of the Fund's

Net Assets) as of April 30, 2010

Retail-Apparel/Shoe	38.0
Retail-Major Department Store	9.7
Retail-Discount	7.1
Retail-Home Furnishings	6.4
Retail-Automobile	5.7
Retail-Regional Department Store	5.6
Retail-Bedding	4.8
Retail-Drug Store	4.4
Retail-Office Supplies	4.0
Rental Auto/Equipment	3.5
Transportation-Equipment & Leasing	2.8
Retail-Fabric Store	2.8
Retail-Sporting Goods	2.6
Distribution/Wholesale	2.6
Money Market Fund	0.2
Other	(0.2	)

Style Allocation (% of the Fund's

Total Investments) as of April 30, 2010

Small-Cap Value					34.7
Large-Cap Growth					22.4
Mid-Cap Growth					21.2
Small-Cap Growth					16.7
Large-Cap Value					5.0

Top Ten Fund Holdings (% of the Fund's

Net Assets) as of April 30, 2010

*Security*
Limited Brands, Inc.					5.5
Gap, Inc. (The)					5.0
Nordstrom, Inc.					4.9
TJX Cos., Inc. (The)					4.8
Bed Bath & Beyond, Inc.					4.8
Walgreen Co.					4.4
Wal-Mart Stores, Inc.					4.4
Staples, Inc.					4.0
Dollar Thrifty Automotive Group, Inc.					3.5
Genesco, Inc.					3.3
Total					44.6

Manager's Analysis (Continued)

PowerShares Dynamic Retail Portfolio (ticker: PMR)

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

Fund Performance History (%)							As of April 30, 2010
	Avg Ann^††						Fund Inception^†
	1 Year			3 Year			Avg Ann^††			Cumulative
Index
Dynamic Retail Intellidex^SM Index		29.69	%		-0.97	%		5.97	%		29.88	%
S&P SuperComposite Retailing Index		45.14	%		-0.76	%		3.46	%		16.55	%
S&P 500^® Index		38.82	%		-5.04	%		1.76	%		8.17	%
Fund
NAV Return		28.49	%		-1.65	%		5.31	%		26.30	%
Share Price Return		28.56	%		-1.64	%		5.31	%		26.28	%

Fund Inception: October 26, 2005

Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2011. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 1.08%. In the Financial Highlights section of this Shareholder Report, the Fund's total net (subsidized) operating expense ratio was determined to be 0.63% while the Fund's total gross operating expense ratio was 0.89%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.

The S&P SuperComposite Retailing Index and S&P 500^® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 94 and 500 common stocks, respectively.

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

^†† Average annualized.

Manager's Analysis

PowerShares Dynamic Semiconductors Portfolio (ticker: PSI)

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

For the fiscal year ended April 30, 2010, the Fund returned 38.16%. Over this same year, the Index returned 39.17%, while the S&P SuperComposite Semiconductor Index returned 51.11%. The Fund benefited from positive performance in semiconductors, semiconductor equipment and electronic components sub-industries. The Fund suffered negative performance in communications equipment sub-industry.

Industry Breakdown (% of the Fund's

Net Assets) as of April 30, 2010

Electronic Components-Semiconductors	52.2
Semiconductor Equipment	20.7
Semiconductor Components-Integrated Circuits	13.3
Wireless Equipment	6.0
Lasers-Systems/Components	2.7
Networking Products	2.7
Electronic Components-Miscellaneous	2.5
Money Market Fund	0.1
Other	(0.2	)

Style Allocation (% of the Fund's

Total Investments) as of April 30, 2010

Mid-Cap Growth					36.1
Small-Cap Growth					23.1
Small-Cap Value					20.2
Large-Cap Growth					10.1
Mid-Cap Value					5.7
Large-Cap Value					4.8

Top Ten Fund Holdings (% of the Fund's

Net Assets) as of April 30, 2010

*Security*
Intel Corp.					5.1
Broadcom Corp.					5.0
Texas Instruments, Inc.					4.8
Altera Corp.					4.7
Micron Technology, Inc.					4.7
Analog Devices, Inc.					4.7
Xilinx, Inc.					4.5
NVIDIA Corp.					4.4
Entegris, Inc.					3.4
RF Micro Devices, Inc.					3.3
Total					44.6

Manager's Analysis (Continued)

PowerShares Dynamic Semiconductors Portfolio (ticker: PSI)

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

Fund Performance History (%)							As of April 30, 2010
	Avg Ann^††						Fund Inception^†
	1 Year			3 Year			Avg Ann^††			Cumulative
Index
Dynamic Semiconductors Intellidex^SM Index		39.17	%		-8.13	%		-0.01	%		-0.02	%
S&P SuperComposite Semiconductor Index		51.11	%		-0.62	%		0.33	%		1.59	%
S&P 500^® Index		38.82	%		-5.04	%		2.03	%		10.20	%
Fund
NAV Return		38.16	%		-8.85	%		-0.70	%		-3.36	%
Share Price Return		38.16	%		-8.86	%		-0.72	%		-3.43	%

Fund Inception: June 23, 2005

Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2011. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.82%. In the Financial Highlights section of this Shareholder Report, the Fund's total net (subsidized) operating expense ratio was determined to be 0.63% while the Fund's total gross operating expense ratio was 0.90%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.

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

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

^†† Average annualized.

Manager's Analysis

PowerShares Dynamic Software Portfolio (ticker: PSJ)

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

For the fiscal year ended April 30, 2010, the Fund returned 46.65%. Over this same year, the Index returned 47.64%, while the S&P SuperComposite Software & Services Index returned 39.05%. The Fund benefited from positive performance in systems software, application software and data processing & outsourced services sub-industries. The Fund suffered negative performance in electronic equipment & instruments sub-industry.

Industry Breakdown (% of the Fund's

Net Assets) as of April 30, 2010

Enterprise Software/Services	25.0
Applications Software	13.0
Data Processing/Management	10.0
Computers-Integrated Systems	8.3
Industrial Audio & Video Products	6.0
Software Tools	5.7
Computer Services	5.6
Transactional Software	5.6
Computer Aided Design	5.3
Internet Security	4.7
Internet Infrastructure Software	3.1
Consulting Services	2.7
Web Portals/ISP	2.6
Computer Software	2.5
Money Market Fund	0.0
Other	(0.1	)

Style Allocation (% of the Fund's

Total Investments) as of April 30, 2010

Mid-Cap Growth					34.4
Small-Cap Growth					30.2
Large-Cap Growth					20.1
Small-Cap Value					10.6
Large-Cap Value					4.7

Top Ten Fund Holdings (% of the Fund's

Net Assets) as of April 30, 2010

*Security*
Dolby Laboratories, Inc.					5.9
VMware, Inc.					5.7
BMC Software, Inc.					4.9
Microsoft Corp.					4.9
Fiserv, Inc.					4.9
Oracle Corp.					4.8
CA, Inc.					4.7
Symantec Corp.					4.7
Lawson Software, Inc.					3.2
TIBCO Software, Inc.					3.1
Total					46.8

Manager's Analysis (Continued)

PowerShares Dynamic Software Portfolio (ticker: PSJ)

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

Fund Performance History (%)							As of April 30, 2010
	Avg Ann^††						Fund Inception^†
	1 Year			3 Year			Avg Ann^††			Cumulative
Index
Dynamic Software Intellidex^SM Index		47.64	%		4.06	%		9.41	%		54.68	%
S&P SuperComposite Software & Services Index		39.05	%		0.32	%		4.43	%		23.30	%
S&P 500^® Index		38.82	%		-5.04	%		2.03	%		10.20	%
Fund
NAV Return		46.65	%		3.40	%		8.79	%		50.47	%
Share Price Return		46.71	%		3.40	%		8.78	%		50.43	%

Fund Inception: June 23, 2005

Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2011. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.97%. In the Financial Highlights section of this Shareholder Report, the Fund's total net (subsidized) operating expense ratio was determined to be 0.63% while the Fund's total gross operating expense ratio was 0.75%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.

The S&P SuperComposite Software & Services Index and S&P 500^® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 99 and 500 common stocks, respectively.

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

^†† Average annualized.

Frequency Distribution of Discounts & Premiums

Since Inception through April 30, 2010

					Closing Price Above NAV (bps)
Ticker	Fund Name	Inception	Days		0-24		25-49		50-99		100-149		150-199		200+
PJB	PowerShares Dynamic Banking Portfolio	10/12/06		893		310		38		9		7		1		3
PBE	PowerShares Dynamic Biotechnology & Genome Portfolio	6/23/05		1222		471		43		3		1		0		0
PKB	PowerShares Dynamic Building & Construction Portfolio	10/26/05		1135		377		39		15		1		1		2
PXE	PowerShares Dynamic Energy Exploration & Production Portfolio	10/26/05		1135		447		23		6		1		0		1
PBJ	PowerShares Dynamic Food & Beverage Portfolio	6/23/05		1222		490		31		8		3		0		0
PTJ	PowerShares Dynamic Healthcare Services Portfolio	10/12/06		893		293		11		5		1		0		0
PIC	PowerShares Dynamic Insurance Portfolio	10/26/05		1135		447		27		16		1		3		1
PEJ	PowerShares Dynamic Leisure and Entertainment Portfolio	6/23/05		1222		444		30		13		0		0		0
PBS	PowerShares Dynamic Media Portfolio	6/23/05		1222		445		32		5		1		0		1
PXQ	PowerShares Dynamic Networking Portfolio	6/23/05		1222		492		32		9		0		0		0
PXJ	PowerShares Dynamic Oil & Gas Services Portfolio	10/26/05		1135		410		51		16		0		0		1
PJP	PowerShares Dynamic Pharmaceuticals Portfolio	6/23/05		1222		529		18		9		2		0		0
PMR	PowerShares Dynamic Retail Portfolio	10/26/05		1135		420		28		8		1		0		0
PSI	PowerShares Dynamic Semiconductors Portfolio	6/23/05		1222		487		33		7		1		2		2
PSJ	PowerShares Dynamic Software Portfolio	6/23/05		1222		564		27		12		5		2		0

	Closing Price Below NAV (bps)
Ticker	-0-24		-25-49		-50-99		-100-149		-150-199		-200+
PJB		481		38		5		0		1		0
PBE		648		46		9		1		0		0
PKB		669		26		4		0		1		0
PXE		616		33		7		0		1		0
PBJ		667		23		0		0		0		0
PTJ		573		10		0		0		0		0
PIC		609		24		3		3		1		0
PEJ		715		17		2		0		0		1
PBS		703		33		2		0		0		0
PXQ		665		23		1		0		0		0
PXJ		629		23		5		0		0		0
PJP		645		17		2		0		0		0
PMR		647		29		2		0		0		0
PSI		669		16		2		2		0		1
PSJ		601		7		3		0		1		0

Fees and Expenses

The example is based on an investment of $1,000 invested at the beginning of the period and held through the six-month period ended April 30, 2010.

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 commission. 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, 2009		Ending Account Value April 30, 2010		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During the Six-Month Period ⁽¹⁾
PowerShares Dynamic Banking Portfolio Actual	$	1,000.00	$	1,216.54		0.65	%	$	3.57
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.57		0.65	%	$	3.26
PowerShares Dynamic Biotechnology & Genome Portfolio Actual	$	1,000.00	$	1,289.94		0.63	%	$	3.58
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.67		0.63	%	$	3.16
PowerShares Dynamic Building & Construction Portfolio Actual	$	1,000.00	$	1,241.29		0.63	%	$	3.50
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.67		0.63	%	$	3.16
PowerShares Dynamic Energy Exploration & Production Portfolio Actual	$	1,000.00	$	1,162.92		0.63	%	$	3.38
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.67		0.63	%	$	3.16

Fees and Expenses (Continued)

	Beginning Account Value November 1, 2009		Ending Account Value April 30, 2010		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During the Six-Month Period ⁽¹⁾
PowerShares Dynamic Food & Beverage Portfolio Actual	$	1,000.00	$	1,173.62		0.63	%	$	3.40
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.67		0.63	%	$	3.16
PowerShares Dynamic Healthcare Services Portfolio Actual	$	1,000.00	$	1,232.67		0.65	%	$	3.60
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.57		0.65	%	$	3.26
PowerShares Dynamic Insurance Portfolio Actual	$	1,000.00	$	1,172.52		0.63	%	$	3.39
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.67		0.63	%	$	3.16
PowerShares Dynamic Leisure and Entertainment Portfolio Actual	$	1,000.00	$	1,390.62		0.63	%	$	3.73
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.67		0.63	%	$	3.16
PowerShares Dynamic Media Portfolio Actual	$	1,000.00	$	1,328.83		0.63	%	$	3.64
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.67		0.63	%	$	3.16
PowerShares Dynamic Networking Portfolio Actual	$	1,000.00	$	1,290.88		0.63	%	$	3.58
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.67		0.63	%	$	3.16
PowerShares Dynamic Oil & Gas Services Portfolio Actual	$	1,000.00	$	1,126.21		0.62	%	$	3.27
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.72		0.62	%	$	3.11
PowerShares Dynamic Pharmaceuticals Portfolio Actual	$	1,000.00	$	1,186.78		0.63	%	$	3.42
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.67		0.63	%	$	3.16
PowerShares Dynamic Retail Portfolio Actual	$	1,000.00	$	1,286.57		0.63	%	$	3.57
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.67		0.63	%	$	3.16
PowerShares Dynamic Semiconductors Portfolio Actual	$	1,000.00	$	1,293.17		0.63	%	$	3.58
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.67		0.63	%	$	3.16
PowerShares Dynamic Software Portfolio Actual	$	1,000.00	$	1,183.82		0.63	%	$	3.41
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.67		0.63	%	$	3.16

(1) Expenses are calculated using the annualized expense ratio, which represents the ongoing expenses as a percentage of net assets for the six months ended April 30, 2010. Expenses are calculated by multiplying the Fund's annualized expense ratio by the average account value for the period; then multiplying the result by 181 and then dividing the result by 365. Expense ratios for the most recent half-year may differ from expenses ratios based on annualized data in the Financial Highlights.

Schedule of Investments

PowerShares Dynamic Banking Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks—99.9%
		Commercial Banks - Central U.S.—19.9%
	15,466	BancFirst Corp.	$	682,669
	27,928	Commerce Bancshares, Inc.		1,156,778
	33,249	First Financial Bancorp		635,389
	11,788	First Financial Bankshares, Inc.		630,422
	29,108	International Bancshares Corp.		703,540
	14,753	Prosperity Bancshares, Inc.		578,613
	16,108	UMB Financial Corp.		678,469
				5,065,880
		Commercial Banks - Eastern U.S.—16.4%
	64,148	Fulton Financial Corp.		673,554
	14,611	M&T Bank Corp.		1,276,271
	29,054	NBT Bancorp, Inc.		710,951
	34,805	S&T Bancorp, Inc.		837,060
	102,000	TrustCo Bank Corp. NY		678,300
				4,176,136
		Commercial Banks - Southern U.S.—11.5%
	20,088	Bank of The Ozarks, Inc.		772,785
	24,190	Community Trust Bancorp, Inc.		726,184
	15,305	Hancock Holding Co.		625,669
	40,733	WesBanco, Inc.		785,332
				2,909,970
		Commercial Banks - Western U.S.—5.5%
	14,620	Bank of Hawaii Corp.		773,106
	69,887	Nara Bancorp, Inc.*		628,983
				1,402,089
		Diversified Banking Institution—4.5%
	26,956	JPMorgan Chase & Co.		1,147,786
		S&L/Thrifts - Central U.S.—7.6%
	17,825	Capitol Federal Financial		671,824
	88,043	TFS Financial Corp.		1,244,928
				1,916,752
		S&L/Thrifts - Eastern U.S.—13.3%
	50,832	Dime Community Bancshares		648,108
	47,949	Investors Bancorp, Inc.*		666,971
	51,511	NewAlliance Bancshares, Inc.		671,188
	52,252	Northwest Bancshares, Inc.		652,628
	70,768	Provident New York Bancorp		726,787
				3,365,682
		Super - Regional Banks - U.S.—21.2%
	92,658	Fifth Third Bancorp		1,381,531
	21,044	PNC Financial Services Group, Inc.		1,414,367
	45,971	U.S. Bancorp		1,230,643
	41,381	Wells Fargo & Co.		1,370,125
				5,396,666
		Total Common Stocks (Cost $21,888,730)		25,380,961

Number of Shares			Value
		Money Market Fund—0.3%
	82,678	Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $82,678)	$	82,678
		Total Investments (Cost $21,971,408)—100.2%		25,463,639
		Liabilities in excess of other assets—(0.2%)		(59,750	)
		Net Assets—100.0%	$	25,403,889

Notes to Schedule of Investments:

* Non-income producing security.

See Notes to Financial Statements.

Schedule of Investments

PowerShares Dynamic Biotechnology & Genome Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks—100.1%
		Biotechnology—58.8%
	279,646	Affymax, Inc.*	$	6,666,761
	193,603	Alexion Pharmaceuticals, Inc.*		10,624,933
	169,358	Amgen, Inc.*		9,714,375
	174,281	Biogen Idec, Inc.*		9,280,463
	287,645	Clinical Data, Inc.*		5,373,209
	248,546	Cubist Pharmaceuticals, Inc.*		5,572,401
	356,713	Emergent Biosolutions, Inc.*		5,807,288
	562,905	Enzon Pharmaceuticals, Inc.*		5,955,535
	808,253	Exelixis, Inc.*		4,671,702
	201,370	Gilead Sciences, Inc.*		7,988,348
	956,014	Halozyme Therapeutics, Inc.*		8,145,239
	490,560	Incyte Corp.*		6,583,315
	188,873	Life Technologies Corp.*		10,333,242
	101,549	Millipore Corp.*		10,779,426
	141,259	OSI Pharmaceuticals, Inc.*		8,287,665
	747,056	PDL BioPharma, Inc.		4,347,866
	979,289	Zymogenetics, Inc.*		5,816,977
				125,948,745
		Chemicals—5.6%
	201,032	Sigma-Aldrich Corp.		11,921,197
		Electronics—8.3%
	76,565	Dionex Corp.*		6,245,407
	160,698	Waters Corp.*		11,568,649
				17,814,056
		Healthcare - Products—7.8%
	715,375	Affymetrix, Inc.*		4,964,703
	418,350	Bruker Corp.*		6,396,571
	81,811	Techne Corp.		5,419,979
				16,781,253
		Pharmaceuticals—19.6%
	609,488	Cadence Pharmaceuticals, Inc.*		5,972,982
	846,181	Inspire Pharmaceuticals, Inc.*		5,796,340
	381,152	MAP Pharmaceuticals, Inc.*		6,845,490
	422,065	Nektar Therapeutics*		5,892,028
	215,825	Neogen Corp.*		5,674,039
	275,813	Targacept, Inc.*		6,564,350
	419,695	Viropharma, Inc.*		5,338,520
				42,083,749
		Total Common Stocks (Cost $190,666,559)		214,549,000

Number of Shares			Value
		Money Market Fund—0.0%
	33,426	Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $33,426)	$	33,426
		Total Investments (Cost $190,699,985)—100.1%		214,582,426
		Liabilities in excess of other assets—(0.1%)		(191,917	)
		Net Assets—100.0%	$	214,390,509

Notes to Schedule of Investments:

* Non-income producing security.

See Notes to Financial Statements.

Schedule of Investments

PowerShares Dynamic Building & Construction Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks—100.0%
		Building Materials—24.7%
	54,037	AAON, Inc.	$	1,304,453
	79,557	Apogee Enterprises, Inc.		1,093,113
	30,876	Armstrong World Industries, Inc.*		1,344,650
	97,004	Comfort Systems USA, Inc.		1,365,816
	97,334	Gibraltar Industries, Inc.*		1,461,957
	88,581	Owens Corning*		3,080,847
	72,973	Quanex Building Products Corp.		1,386,487
	32,261	Universal Forest Products, Inc.		1,356,575
				12,393,898
		Commercial Services—2.2%
	62,706	Team, Inc.*		1,091,084
		Engineering & Construction—29.8%
	49,386	EMCOR Group, Inc.*		1,410,464
	48,700	Fluor Corp.		2,573,308
	41,149	Granite Construction, Inc.		1,383,018
	46,289	Insituform Technologies, Inc., Class A*		1,109,547
	53,719	Jacobs Engineering Group, Inc.*		2,590,330
	41,219	Layne Christensen Co.*		1,128,576
	33,593	Michael Baker Corp.*		1,187,177
	32,763	Shaw Group, Inc. (The)*		1,254,168
	44,820	URS Corp.*		2,301,507
				14,938,095
		Environmental Control—2.6%
	54,343	Tetra Tech, Inc.*		1,323,252
		Home Builders—12.6%
	168,631	D.R. Horton, Inc.		2,477,189
	2,942	NVR, Inc.*		2,112,503
	269,399	Standard Pacific Corp.*		1,726,848
				6,316,540
		Machinery - Diversified—4.2%
	24,294	NACCO Industries, Inc., Class A		2,112,120
		Metal Fabricate/Hardware—2.7%
	15,966	Valmont Industries, Inc.		1,329,808
		Miscellaneous Manufacturing—2.6%
	25,094	A.O. Smith Corp.		1,295,603
		Office Furnishings—3.5%
	132,195	Interface, Inc., Class A		1,729,111
		Real Estate—2.9%
	64,086	Forestar Group, Inc.*		1,444,499

Number of Shares			Value
		Common Stocks (Continued)
		Retail—12.2%
	66,802	Home Depot, Inc. (The)	$	2,354,771
	87,906	Lowe's Cos., Inc.		2,384,011
	20,773	Tractor Supply Co.		1,395,322
				6,134,104
		Total Common Stocks (Cost $40,206,104)		50,108,114
		Money Market Fund—0.1%
	54,123	Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $54,123)		54,123
		Total Investments (Cost $40,260,227)—100.1%		50,162,237
		Liabilities in excess of other assets—(0.1%)		(47,864	)
		Net Assets—100.0%	$	50,114,373

Notes to Schedule of Investments:

* Non-income producing security.

See Notes to Financial Statements.

Schedule of Investments

PowerShares Dynamic Energy Exploration & Production Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks and Other Equity Interests—99.9%
		Gas - Distribution—5.2%
	32,280	Energen Corp.	$	1,577,524
	29,503	National Fuel Gas Co.		1,534,746
				3,112,270
		Oil Companies - Exploration & Production—71.8%
	38,363	Anadarko Petroleum Corp.		2,384,644
	25,959	Apache Corp.		2,641,588
	54,757	Berry Petroleum Co., Class A		1,772,484
	36,559	Cabot Oil & Gas Corp.		1,320,877
	101,255	Chesapeake Energy Corp.		2,409,869
	24,556	Cimarex Energy Co.		1,671,772
	56,032	CNX Gas Corp.*		2,144,345
	31,592	Concho Resources, Inc.*		1,795,057
	28,461	Contango Oil & Gas Co.*		1,562,509
	37,170	Continental Resources, Inc.*		1,827,277
	66,073	Dorchester Minerals LP		1,812,382
	145,727	Energy Partners Ltd.*		1,992,088
	77,603	EXCO Resources, Inc.		1,439,536
	161,260	Gulfport Energy Corp.*		2,015,750
	69,351	Legacy Reserves LP		1,656,795
	33,693	Occidental Petroleum Corp.		2,987,221
	31,457	Pioneer Natural Resources Co.		2,017,337
	34,948	Questar Corp.		1,675,757
	98,356	Quicksilver Resources, Inc.*		1,364,198
	86,069	Stone Energy Corp.*		1,402,925
	59,995	Vanguard Natural Resources LLC		1,480,677
	127,831	Venoco, Inc.*		1,904,682
	19,605	Whiting Petroleum Corp.*		1,770,920
				43,050,690
		Oil Companies - Integrated—22.9%
	37,211	Chevron Corp.		3,030,464
	56,049	ConocoPhillips		3,317,540
	41,390	Exxon Mobil Corp.		2,808,311
	45,754	Hess Corp.		2,907,667
	28,275	Murphy Oil Corp.		1,700,741
				13,764,723
		Total Common Stocks and Other Equity Interests (Cost $52,479,653)		59,927,683
		Money Market Fund—0.1%
	62,144	Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $62,144)		62,144
		Total Investments (Cost $52,541,797)—100.0%		59,989,827
		Liabilities in excess of other assets—(0.0%)		(7,233	)
		Net Assets—100.0%	$	59,982,594

Notes to Schedule of Investments:

* Non-income producing security.

See Notes to Financial Statements.

Schedule of Investments

PowerShares Dynamic Food & Beverage Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks—100.0%
		Alternative Waste Technologies—2.9%
	225,634	Darling International, Inc.*	$	2,141,267
		Beverages - Non-alcoholic—12.4%
	32,680	Coca-Cola Bottling Co. Consolidated		1,800,014
	63,243	Coca-Cola Co. (The)		3,380,338
	71,177	Coca-Cola Enterprises, Inc.		1,973,738
	57,279	Dr Pepper Snapple Group, Inc.		1,874,742
				9,028,832
		Beverages - Wine/Spirits—5.8%
	34,733	Brown-Forman Corp., Class B		2,020,766
	120,918	Constellation Brands, Inc., Class A*		2,209,172
				4,229,938
		Brewery—3.0%
	38,433	Boston Beer Co., Inc., Class A*		2,191,065
		Food - Canned—3.2%
	155,170	Del Monte Foods Co.		2,318,240
		Food - Confectionery—3.0%
	45,739	Hershey Co. (The)		2,150,190
		Food - Meat Products—5.4%
	44,238	Hormel Foods Corp.		1,803,141
	106,727	Tyson Foods, Inc., Class A		2,090,782
				3,893,923
		Food - Miscellaneous/Diversified—34.9%
	124,904	Chiquita Brands International, Inc.*		1,878,556
	136,308	ConAgra Foods, Inc.		3,335,457
	55,820	Corn Products International, Inc.		2,009,520
	52,184	Diamond Foods, Inc.		2,228,779
	46,300	General Mills, Inc.		3,295,634
	72,637	H.J. Heinz Co.		3,404,496
	63,933	Kellogg Co.		3,512,479
	31,605	Lancaster Colony Corp.		1,737,327
	134,114	Sara Lee Corp.		1,907,101
	1,430	Seaboard Corp.		2,087,814
				25,397,163
		Food - Retail—8.1%
	62,068	Ruddick Corp.		2,193,483
	72,978	Safeway, Inc.		1,722,281
	51,243	Whole Foods Market, Inc.*		1,999,502
				5,915,266
		Food - Wholesale/Distribution—2.6%
	61,920	United Natural Foods, Inc.*		1,900,325

Number of Shares			Value
		Common Stocks (Continued)
		Retail - Restaurants—18.7%
	52,217	McDonald's Corp.	$	3,685,998
	24,984	Panera Bread Co., Class A*		1,947,253
	145,530	Starbucks Corp.		3,780,869
	98,877	Yum! Brands, Inc.		4,194,362
				13,608,482
		Total Common Stocks (Cost $64,884,816)		72,774,691
		Money Market Fund—0.0%
	12,054	Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $12,054)		12,054
		Total Investments (Cost $64,896,870)—100.0%		72,786,745
		Other assets less liabilities—0.0%		7,938
		Net Assets—100.0%	$	72,794,683

Notes to Schedule of Investments:

* Non-income producing security.

See Notes to Financial Statements.

Schedule of Investments

PowerShares Dynamic Healthcare Services Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks—100.1%
		Dialysis Centers—2.6%
	9,010	DaVita, Inc.*	$	562,494
		Diversified Operations/Commercial Services—2.7%
	10,365	Chemed Corp.		570,179
		Human Resources—2.6%
	10,664	Emergency Medical Services Corp., Class A*		563,912
		Medical Labs & Testing Services—12.9%
	28,034	Bio-Reference Labs, Inc.*		655,995
	13,884	Laboratory Corp. of America Holdings*		1,090,866
	17,936	Quest Diagnostics, Inc.		1,025,222
				2,772,083
		Medical - HMO—14.0%
	33,940	Aetna, Inc.		1,002,927
	30,158	Healthspring, Inc.*		530,781
	13,244	Magellan Health Services, Inc.*		559,029
	30,061	UnitedHealth Group, Inc.		911,149
				3,003,886
		Medical - Hospitals—12.5%
	16,201	Community Health Systems, Inc.*		661,973
	76,156	Health Management Associates, Inc., Class A*		709,774
	105,346	Tenet Healthcare Corp.*		658,412
	17,898	Universal Health Services, Inc., Class B		664,374
				2,694,533
		Medical - Nursing Homes—8.4%
	33,324	Ensign Group, Inc. (The)		578,505
	31,869	Kindred Healthcare, Inc.*		568,543
	31,669	Odyssey HealthCare, Inc.*		659,665
				1,806,713
		Medical - Outpatient/Home Medicine—13.8%
	9,629	Amedisys, Inc.*		554,438
	26,871	AmSurg Corp.*		556,767
	20,037	Gentiva Health Services, Inc.*		574,661
	18,444	LHC Group, Inc.*		628,940
	13,824	Lincare Holdings, Inc.*		645,443
				2,960,249
		Medical - Wholesale Drug Distribution—15.2%
	36,300	AmerisourceBergen Corp.		1,119,855
	29,963	Cardinal Health, Inc.		1,039,416
	17,207	McKesson Corp.		1,115,186
				3,274,457
		Pharmacy Services—7.1%
	16,096	Medco Health Solutions, Inc.*		948,376
	20,508	Omnicare, Inc.		569,918
				1,518,294

Number of Shares			Value
		Common Stocks (Continued)
		Physical Therapy/Rehabilitation Centers—5.7%
	32,090	Healthsouth Corp.*	$	656,561
	19,942	RehabCare Group, Inc.*		568,746
				1,225,307
		Physician Practice Management—2.6%
	10,378	MEDNAX, Inc.*		570,167
		Total Common Stocks (Cost $19,386,293)		21,522,274
		Money Market Fund—0.1%
	32,189	Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $32,189)		32,189
		Total Investments (Cost $19,418,482)—100.2%		21,554,463
		Liabilities in excess of other assets—(0.2%)		(44,691	)
		Net Assets—100.0%	$	21,509,772

Notes to Schedule of Investments:

* Non-income producing security.

See Notes to Financial Statements.

Schedule of Investments

PowerShares Dynamic Insurance Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks—100.1%
		Insurance Brokers—2.9%
	11,654	Erie Indemnity Co., Class A	$	539,697
		Investment Management/Advisor Services—3.3%
	40,186	National Financial Partners Corp.*		618,462
		Life/Health Insurance—21.9%
	17,119	Aflac, Inc.		872,384
	52,470	American Equity Investment Life Holding Co.		551,985
	92,718	Conseco, Inc.*		547,036
	22,723	FBL Financial Group, Inc., Class A		587,163
	10,743	StanCorp Financial Group, Inc.		483,005
	9,930	Torchmark Corp.		531,652
	32,043	Universal American Financial Corp.*		491,860
				4,065,085
		Multi-line Insurance—23.3%
	27,088	Allstate Corp. (The)		884,965
	17,848	American Financial Group, Inc.		525,267
	34,736	Hartford Financial Services Group, Inc. (The)		992,407
	23,218	Loews Corp.		864,638
	23,262	MetLife, Inc.		1,060,282
				4,327,559
		Property/Casualty Insurance—46.0%
	26,829	AMERISAFE, Inc.*		458,776
	32,585	AmTrust Financial Services, Inc.		444,134
	16,776	Chubb Corp. (The)		886,947
	28,644	CNA Surety Corp.*		480,360
	35,033	Employers Holdings, Inc.		577,344
	14,326	First American Corp. (The)		495,250
	16,550	HCC Insurance Holdings, Inc.		449,994
	65,217	Meadowbrook Insurance Group, Inc.		515,214
	30,437	OneBeacon Insurance Group Ltd., Class A		493,688
	8,660	ProAssurance Corp.*		527,827
	49,359	Progressive Corp. (The)		991,622
	12,432	Safety Insurance Group, Inc.		463,589
	28,484	Selective Insurance Group, Inc.		475,968
	20,278	Tower Group, Inc.		467,611
	16,097	Travelers Cos., Inc. (The)		816,762
				8,545,086
		Reinsurance—2.7%
	9,715	Reinsurance Group of America, Inc.		501,585
		Total Common Stocks (Cost $16,848,828)		18,597,474

Number of Shares			Value
		Money Market Fund—0.2%
	42,783	Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $42,783)	$	42,783
		Total Investments (Cost $16,891,611)—100.3%		18,640,257
		Liabilities in excess of other assets—(0.3%)		(48,605	)
		Net Assets—100.0%	$	18,591,652

Notes to Schedule of Investments:

* Non-income producing security.

See Notes to Financial Statements.

Schedule of Investments

PowerShares Dynamic Leisure and Entertainment Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks—100.0%
		Commercial Services—2.7%
	195,929	Global Cash Access Holdings, Inc.*	$	1,700,664
		Entertainment—13.5%
	35,436	Bally Technologies, Inc.*		1,634,308
	91,091	Cinemark Holdings, Inc.		1,663,322
	83,622	International Game Technology		1,762,752
	54,949	International Speedway Corp., Class A		1,679,241
	255,670	Warner Music Group Corp.*		1,751,340
				8,490,963
		Internet—4.6%
	120,971	Expedia, Inc.		2,856,125
		Leisure Time—5.5%
	102,192	Interval Leisure Group, Inc.*		1,511,419
	38,692	WMS Industries, Inc.*		1,935,374
				3,446,793
		Lodging—8.5%
	99,239	Marriott International, Inc., Class A		3,648,026
	63,841	Wyndham Worldwide Corp.		1,711,577
				5,359,603
		Media—20.5%
	112,974	CBS Corp., Class B		1,831,309
	67,974	Scripps Networks Interactive, Inc., Class A		3,081,941
	90,750	Viacom, Inc., Class B*		3,206,197
	86,127	Walt Disney Co. (The)		3,172,919
	86,070	World Wrestling Entertainment, Inc., Class A		1,570,777
				12,863,143
		Retail—44.7%
	4,282	Biglari Holdings, Inc.*		1,675,333
	51,473	Bob Evans Farms, Inc.		1,592,060
	81,037	Brinker International, Inc.		1,500,805
	41,875	CEC Entertainment, Inc.*		1,635,219
	62,048	Cheesecake Factory, Inc. (The)*		1,685,844
	33,599	Cracker Barrel Old Country Store, Inc.		1,658,783
	36,190	Darden Restaurants, Inc.		1,619,502
	67,750	HSN, Inc.*		2,041,307
	42,133	McDonald's Corp.		2,974,168
	20,158	Panera Bread Co., Class A*		1,571,115
	60,124	Papa John's International, Inc.*		1,647,398
	181,401	Ruby Tuesday, Inc.*		2,029,877
	117,443	Starbucks Corp.		3,051,169
	79,792	Yum! Brands, Inc.		3,384,777
				28,067,357
		Total Common Stocks (Cost $56,521,248)		62,784,648

Number of Shares			Value
		Money Market Fund—0.0%
	40,844	Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $40,844)	$	40,844
		Total Investments (Cost $56,562,092)—100.0%		62,825,492
		Liabilities in excess of other assets—(0.0%)		(31,113	)
		Net Assets—100.0%	$	62,794,379

Notes to Schedule of Investments:

* Non-income producing security.

See Notes to Financial Statements.

Schedule of Investments

PowerShares Dynamic Media Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks—100.0%
		Advertising Agencies—5.6%
	398,736	Interpublic Group of Cos., Inc. (The)*	$	3,552,738
	81,667	Omnicom Group, Inc.		3,483,914
				7,036,652
		Advertising Sales—2.9%
	99,417	Lamar Advertising Co., Class A*		3,700,301
		Broadcast Services/Program—2.7%
	75,564	Scripps Networks Interactive, Inc., Class A		3,426,072
		Cable/Satellite TV—12.5%
	333,505	Comcast Corp., Class A		6,583,389
	161,963	DIRECTV, Class A*		5,867,919
	149,754	DISH Network Corp., Class A		3,317,051
				15,768,359
		Computer Services—2.3%
	57,738	IHS, Inc., Class A*		2,925,584
		Direct Marketing—2.9%
	251,518	Harte-Hanks, Inc.		3,621,859
		Multimedia—28.0%
	392,460	E.W. Scripps Co., Class A*		4,293,512
	160,305	McGraw-Hill Cos., Inc. (The)		5,405,485
	410,082	News Corp., Class A		6,323,465
	188,795	Time Warner, Inc.		6,245,339
	184,913	Viacom, Inc., Class B*		6,532,976
	175,504	Walt Disney Co. (The)		6,465,567
				35,266,344
		Music—2.8%
	521,013	Warner Music Group Corp.*		3,568,939
		Printing - Commercial—3.0%
	116,718	Valassis Communications, Inc.*		3,815,511
		Publishing - Books—4.6%
	71,233	John Wiley & Sons, Inc., Class A		3,011,019
	101,723	Scholastic Corp.		2,747,538
				5,758,557
		Publishing - Newspapers—7.5%
	197,398	Gannett Co., Inc.		3,359,714
	620,455	McClatchy Co. (The), Class A*		3,381,480
	273,366	New York Times Co. (The), Class A*		2,711,790
				9,452,984
		Radio—6.2%
	294,051	Entercom Communications Corp., Class A*		4,281,383
	2,931,947	Sirius XM Radio, Inc.*		3,459,697
				7,741,080

Number of Shares			Value
		Common Stocks (Continued)
		Retail - Discount—3.3%
	138,059	HSN, Inc.*	$	4,159,718
		Schools—2.9%
	7,123	Washington Post Co. (The), Class B		3,612,501
		Telecommunication Services—3.2%
	272,356	RCN Corp.*		3,998,186
		Television—3.0%
	230,214	CBS Corp., Class B		3,731,769
		Web Portals/ISP—6.6%
	120,685	AOL, Inc.*		2,819,202
	10,417	Google, Inc., Class A*		5,473,508
				8,292,710
		Total Common Stocks (Cost $109,702,444)		125,877,126
		Money Market Fund—0.1%
	72,119	Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $72,119)		72,119
		Total Investments (Cost $109,774,563)—100.1%		125,949,245
		Liabilities in excess of other assets—(0.1%)		(74,181	)
		Net Assets—100.0%	$	125,875,064

Notes to Schedule of Investments:

* Non-income producing security.

See Notes to Financial Statements.

Schedule of Investments

PowerShares Dynamic Networking Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks—100.1%
		Computers—2.4%
	79,254	Netscout Systems, Inc.*	$	1,150,768
		Electrical Components & Equipment—2.7%
	56,543	Molex, Inc.		1,267,129
		Electronics—5.0%
	50,899	Amphenol Corp., Class A		2,352,043
		Internet—16.8%
	20,722	F5 Networks, Inc.*		1,418,006
	53,414	McAfee, Inc.*		1,856,136
	144,358	SonicWALL, Inc.*		1,462,347
	49,501	Sourcefire, Inc.*		1,107,337
	128,093	Symantec Corp.*		2,148,120
				7,991,946
		Semiconductors—15.0%
	67,686	Broadcom Corp., Class A		2,334,490
	91,048	Emulex Corp.*		1,069,814
	139,314	PMC - Sierra, Inc.*		1,232,929
	63,534	QLogic Corp.*		1,230,654
	25,443	Silicon Laboratories, Inc.*		1,230,169
				7,098,056
		Software—12.9%
	49,287	Citrix Systems, Inc.*		2,316,489
	61,475	Solarwinds, Inc.*		1,140,976
	42,817	VMware, Inc., Class A*		2,639,240
				6,096,705
		Telecommunications—45.3%
	69,363	Acme Packet, Inc.*		1,813,149
	182,384	ADC Telecommunications, Inc.*		1,460,896
	49,459	ADTRAN, Inc.		1,324,017
	112,046	Arris Group, Inc.*		1,377,045
	32,219	Atheros Communications, Inc.*		1,251,386
	87,131	Cisco Systems, Inc.*		2,345,567
	107,765	JDS Uniphase Corp.*		1,399,867
	75,764	Juniper Networks, Inc.*		2,152,455
	45,613	NETGEAR, Inc.*		1,234,288
	119,207	Oclaro, Inc.*		1,827,446
	74,891	Oplink Communications, Inc.*		1,131,603
	542,869	Sonus Networks, Inc.*		1,406,031
	69,993	Tekelec*		1,268,973
	167,339	Tellabs, Inc.		1,519,438
				21,512,161
		Total Common Stocks (Cost $39,872,999)		47,468,808

Number of Shares			Value
		Money Market Fund—0.0%
	19,641	Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $19,641)	$	19,641
		Total Investments (Cost $39,892,640)—100.1%		47,488,449
		Liabilities in excess of other assets—(0.1%)		(51,444	)
		Net Assets—100.0%	$	47,437,005

Notes to Schedule of Investments:

* Non-income producing security.

See Notes to Financial Statements.

Schedule of Investments

PowerShares Dynamic Oil & Gas Services Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks—100.1%
		Oil & Gas Drilling—20.4%
	125,145	Atwood Oceanics, Inc.*	$	4,556,529
	189,463	Helmerich & Payne, Inc.		7,695,987
	1,144,124	Hercules Offshore, Inc.*		4,530,731
	816,274	Parker Drilling Co.*		4,513,995
	295,046	Rowan Cos., Inc.*		8,792,371
	96,335	Unit Corp.*		4,601,923
				34,691,536
		Oil Field Machinery & Equipment—25.3%
	186,656	Cameron International Corp.*		7,365,446
	299,965	Complete Production Services, Inc.*		4,526,472
	135,478	Dresser-Rand Group, Inc.*		4,779,664
	76,519	Dril-Quip, Inc.*		4,432,746
	136,670	FMC Technologies, Inc.*		9,251,192
	57,327	Lufkin Industries, Inc.		4,880,247
	176,605	National Oilwell Varco, Inc.		7,775,918
				43,011,685
		Oil - Field Services—45.2%
	593,970	Cal Dive International, Inc.*		3,896,443
	68,610	CARBO Ceramics, Inc.		5,025,683
	184,069	Exterran Holdings, Inc.*		5,365,611
	620,367	Global Industries Ltd.*		4,156,459
	254,629	Halliburton Co.		7,804,379
	809,957	Newpark Resources, Inc.*		5,410,513
	126,992	Oceaneering International, Inc.*		8,317,976
	97,333	Oil States International, Inc.*		4,702,157
	338,796	RPC, Inc.		4,624,565
	125,652	Schlumberger Ltd.		8,974,066
	54,823	SEACOR Holdings, Inc.*		4,614,452
	202,590	Superior Energy Services, Inc.*		5,482,085
	415,420	TETRA Technologies, Inc.*		5,105,512
	277,323	Willbros Group, Inc.*		3,480,404
				76,960,305
		Seismic Data Collection—3.2%
	914,292	ION Geophysical Corp.*		5,494,895
		Transportation - Marine—3.4%
	170,227	Gulfmark Offshore, Inc., Class A*		5,867,725
		Transportation - Services—2.6%
	115,637	Bristow Group, Inc.*		4,476,308
		Total Common Stocks (Cost $145,882,107)		170,502,454

Number of Shares			Value
		Money Market Fund—0.0%
	11,625	Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $11,625)	$	11,625
		Total Investments (Cost $145,893,732)—100.1%		170,514,079
		Liabilities in excess of other assets—(0.1%)		(156,343	)
		Net Assets—100.0%	$	170,357,736

Notes to Schedule of Investments:

* Non-income producing security.

See Notes to Financial Statements.

Schedule of Investments

PowerShares Dynamic Pharmaceuticals Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks—100.0%
		Consumer Products - Miscellaneous—3.2%
	190,858	Prestige Brands Holdings, Inc.*	$	1,858,957
		Medical Products—9.9%
	26,921	Baxter International, Inc.		1,271,209
	29,287	Hospira, Inc.*		1,575,348
	44,600	Johnson & Johnson		2,867,780
				5,714,337
		Medical - Biomedical/Genetics—19.3%
	49,633	Amgen, Inc.*		2,846,949
	27,860	Biogen Idec, Inc.*		1,483,545
	25,750	Celgene Corp.*		1,595,213
	26,793	Genzyme Corp.*		1,426,459
	59,015	Gilead Sciences, Inc.*		2,341,125
	199,039	Medicines Co. (The)*		1,460,946
				11,154,237
		Medical - Drugs—49.7%
	51,764	Abbott Laboratories		2,648,246
	26,230	Allergan, Inc.		1,670,589
	114,637	Bristol-Myers Squibb Co.		2,899,170
	22,318	Cephalon, Inc.*		1,432,816
	81,822	Eli Lilly & Co.		2,861,315
	67,367	Endo Pharmaceuticals Holdings, Inc.*		1,475,337
	51,291	Forest Laboratories, Inc.*		1,398,193
	136,230	King Pharmaceuticals, Inc.*		1,335,054
	68,115	Medicis Pharmaceutical Corp., Class A		1,728,759
	76,187	Merck & Co., Inc.		2,669,592
	160,100	Pfizer, Inc.		2,676,872
	53,662	Salix Pharmaceuticals Ltd.*		2,157,212
	41,178	Valeant Pharmaceuticals International*		1,853,010
	182,453	Vivus, Inc.*		1,859,196
				28,665,361
		Medical - Generic Drugs—14.9%
	99,454	Impax Laboratories, Inc.*		1,800,117
	71,819	Mylan, Inc.*		1,582,173
	61,231	Par Pharmaceutical Cos., Inc.*		1,661,809
	30,917	Perrigo Co.		1,886,865
	38,518	Watson Pharmaceuticals, Inc.*		1,649,341
				8,580,305
		Therapeutics—3.0%
	247,992	Inspire Pharmaceuticals, Inc.*		1,698,745
		Total Common Stocks (Cost $58,351,367)		57,671,942

Number of Shares			Value
		Money Market Fund—0.0%
	16,592	Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $16,592)	$	16,592
		Total Investments (Cost $58,367,959)—100.0%		57,688,534
		Liabilities in excess of other assets—(0.0%)		(26,555	)
		Net Assets—100.0%	$	57,661,979

Notes to Schedule of Investments:

* Non-income producing security.

See Notes to Financial Statements.

Schedule of Investments

PowerShares Dynamic Retail Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks—100.0%
		Distribution/Wholesale—2.6%
	10,124	United Stationers, Inc.*	$	619,791
		Rental Auto/Equipment—3.5%
	19,252	Dollar Thrifty Automotive Group, Inc.*		846,895
		Retail - Apparel/Shoe—38.0%
	15,138	Children's Place Retail Stores, Inc. (The)*		693,623
	25,593	Collective Brands, Inc.*		600,156
	23,261	Dress Barn, Inc. (The)*		643,865
	21,470	DSW, Inc., Class A*		648,394
	49,309	Gap, Inc. (The)		1,219,412
	24,168	Genesco, Inc.*		804,553
	13,741	J.Crew Group, Inc.*		638,544
	49,878	Limited Brands, Inc.		1,336,730
	27,078	Men's Wearhouse, Inc. (The)		639,853
	11,819	Ross Stores, Inc.		661,864
	70,788	Stein Mart, Inc.*		671,070
	17,953	Urban Outfitters, Inc.*		673,417
				9,231,481
		Retail - Automobile—5.7%
	49,723	Asbury Automotive Group, Inc.*		773,193
	56,146	Sonic Automotive, Inc., Class A*		599,639
				1,372,832
		Retail - Bedding—4.8%
	25,476	Bed Bath & Beyond, Inc.*		1,170,877
		Retail - Discount—7.1%
	17,268	Big Lots, Inc.*		659,637
	19,612	Wal-Mart Stores, Inc.		1,052,184
				1,711,821
		Retail - Drug Store—4.4%
	30,082	Walgreen Co.		1,057,382
		Retail - Fabric Store—2.8%
	15,276	Jo-Ann Stores, Inc.*		673,977
		Retail - Home Furnishings—6.4%
	34,920	Kirkland's, Inc.*		777,668
	94,650	Pier 1 Imports, Inc.*		783,702
				1,561,370
		Retail - Major Department Store—9.7%
	28,700	Nordstrom, Inc.		1,186,171
	25,469	TJX Cos., Inc. (The)		1,180,233
				2,366,404
		Retail - Office Supplies—4.0%
	41,158	Staples, Inc.		968,448

Number of Shares			Value
		Common Stocks (Continued)
		Retail - Regional Department Store—5.6%
	64,684	Retail Ventures, Inc.*	$	699,881
	43,479	Stage Stores, Inc.		663,055
				1,362,936
		Retail - Sporting Goods—2.6%
	37,850	Big 5 Sporting Goods Corp.		641,558
		Transportation - Equipment & Leasing—2.8%
	11,030	Amerco, Inc.*		688,824
		Total Common Stocks (Cost $25,132,354)		24,274,596
		Money Market Fund—0.2%
	36,352	Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $36,352)		36,352
		Total Investments (Cost $25,168,706)—100.2%		24,310,948
		Liabilities in excess of other assets—(0.2%)		(38,130	)
		Net Assets—100.0%	$	24,272,818

Notes to Schedule of Investments:

* Non-income producing security.

See Notes to Financial Statements.

Schedule of Investments

PowerShares Dynamic Semiconductors Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks—100.1%
		Electronic Components - Miscellaneous—2.5%
	69,099	Vishay Intertechnology, Inc.*	$	719,320
		Electronic Components - Semiconductors—52.2%
	53,153	Altera Corp.		1,347,960
	117,650	Amkor Technology, Inc.*		887,081
	41,459	Broadcom Corp., Class A		1,429,921
	68,632	Fairchild Semiconductor International, Inc.*		770,051
	63,247	Intel Corp.		1,443,929
	131,405	LSI Corp.*		791,058
	26,175	Microchip Technology, Inc.		764,572
	143,321	Micron Technology, Inc.*		1,340,051
	48,912	National Semiconductor Corp.		722,919
	80,155	NVIDIA Corp.*		1,260,037
	88,977	ON Semiconductor Corp.*		706,478
	85,331	PMC - Sierra, Inc.*		755,179
	53,261	Texas Instruments, Inc.		1,385,319
	50,272	Xilinx, Inc.		1,296,012
				14,900,567
		Lasers - Systems/Components—2.7%
	22,615	Cymer, Inc.*		772,302
		Networking Products—2.7%
	19,736	Atheros Communications, Inc.*		766,546
		Semiconductor Components - Integrated Circuits—13.3%
	44,408	Analog Devices, Inc.		1,329,132
	16,969	Hittite Microwave Corp.*		870,170
	71,906	Micrel, Inc.		839,143
	19,698	Power Integrations, Inc.		757,979
				3,796,424
		Semiconductor Equipment—20.7%
	81,974	Brooks Automation, Inc.*		796,787
	158,096	Entegris, Inc.*		978,614
	107,641	Kulicke & Soffa Industries, Inc.*		882,656
	20,887	Lam Research Corp.*		846,968
	227,737	LTX-Credence Corp.*		772,029
	70,897	Teradyne, Inc.*		867,070
	23,544	Varian Semiconductor Equipment Associates, Inc.*		775,540
				5,919,664
		Wireless Equipment—6.0%
	27,614	InterDigital, Inc.*		764,079
	168,233	RF Micro Devices, Inc.*		945,470
				1,709,549
		Total Common Stocks (Cost $26,360,533)		28,584,372

Number of Shares			Value
		Money Market Fund—0.1%
	36,256	Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $36,256)	$	36,256
		Total Investments (Cost $26,396,789)—100.2%		28,620,628
		Liabilities in excess of other assets—(0.2%)		(47,208	)
		Net Assets—100.0%	$	28,573,420

Notes to Schedule of Investments:

* Non-income producing security.

See Notes to Financial Statements.

Schedule of Investments

PowerShares Dynamic Software Portfolio

April 30, 2010

Number of Shares			Value
		Common Stocks—100.1%
		Applications Software—13.0%
	220,777	Deltek, Inc.*	$	1,737,515
	108,603	Microsoft Corp.		3,316,736
	60,592	Progress Software Corp.*		1,954,092
	60,527	Red Hat, Inc.*		1,807,941
				8,816,284
		Computer Aided Design—5.3%
	38,709	ANSYS, Inc.*		1,741,905
	97,516	Parametric Technology Corp.*		1,812,822
				3,554,727
		Computer Services—5.6%
	44,177	DST Systems, Inc.		1,875,314
	67,184	Manhattan Associates, Inc.*		1,925,493
				3,800,807
		Computer Software—2.5%
	72,927	Blackbaud, Inc.		1,680,967
		Computers - Integrated Systems—8.3%
	75,188	Jack Henry & Associates, Inc.		1,918,798
	56,517	MICROS Systems, Inc.*		2,100,171
	55,684	Teradata Corp.*		1,618,734
				5,637,703
		Consulting Services—2.7%
	29,483	MAXIMUS, Inc.		1,825,293
		Data Processing/Management—10.0%
	84,382	CSG Systems International, Inc.*		1,917,159
	73,944	Fair Isaac Corp.		1,557,261
	64,536	Fiserv, Inc.*		3,297,144
				6,771,564
		Enterprise Software/Services—25.0%
	84,488	BMC Software, Inc.*		3,325,448
	138,336	CA, Inc.		3,155,444
	198,105	Epicor Software Corp.*		1,818,604
	282,019	Lawson Software, Inc.*		2,188,467
	19,143	MicroStrategy, Inc., Class A*		1,466,354
	126,271	Oracle Corp.		3,262,843
	38,245	Sybase, Inc.*		1,659,068
				16,876,228
		Industrial Audio & Video Products—6.0%
	58,431	Dolby Laboratories, Inc., Class A*		4,015,378
		Internet Infrastructure Software—3.1%
	185,143	TIBCO Software, Inc.*		2,110,630
		Internet Security—4.7%
	188,073	Symantec Corp.*		3,153,984
		Software Tools—5.7%
	62,868	VMware, Inc., Class A*		3,875,184

Number of Shares			Value
		Common Stocks (Continued)
		Transactional Software—5.6%
	106,844	Bottomline Technologies, Inc.*	$	1,859,086
	49,699	Solera Holdings, Inc.		1,931,800
				3,790,886
		Web Portals/ISP—2.6%
	168,428	InfoSpace, Inc.*		1,763,441
		Total Common Stocks (Cost $59,393,059)		67,673,076
		Money Market Fund—0.0%
	17,717	Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $17,717)		17,717
		Total Investments (Cost $59,410,776)—100.1%		67,690,793
		Liabilities in excess of other assets—(0.1%)		(64,521	)
		Net Assets—100.0%	$	67,626,272

Notes to Schedule of Investments:

* Non-income producing security.

See Notes to Financial Statements.

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Statements of Assets and Liabilities

April 30, 2010

	PowerShares Dynamic Banking Portfolio			PowerShares Dynamic Biotechnology & Genome Portfolio			PowerShares Dynamic Building & Construction Portfolio			PowerShares Dynamic Energy Exploration & Production Portfolio			PowerShares Dynamic Food & Beverage Portfolio			PowerShares Dynamic Healthcare Services Portfolio			PowerShares Dynamic Insurance Portfolio			PowerShares Dynamic Leisure and Entertainment Portfolio
ASSETS:
Investments, at value	$	25,463,639		$	214,582,426		$	50,162,237		$	59,989,827		$	72,786,745		$	21,554,463		$	18,640,257		$	62,825,492
Cash		—			—			—			—			—			—			—			—
Receivables:
Investments sold		701,665			—			—			66,200			—			—			—			—
Dividends		22,105			7			12,920			3,959			91,437			3			4			26,678
Expense waivers		3,734			—			6,331			4,818			1,815			6,443			10,208			5,084
Shares sold		—			—			—			—			—			—			—			846,168
Other assets		3,000			3,000			3,000			3,002			3,000			3,000			3,002			3,000
Total Assets		26,194,143			214,585,433			50,184,488			60,067,806			72,882,997			21,563,909			18,653,471			63,706,422
LIABILITES:
Due to custodian		6,063			6,649			6,064			6,465			6,064			6,064			6,063			6,559
Payables:
Shares repurchased		700,853			—			—			—			—			—			—			—
Investments purchased		—			—			—			—			—			—			—			845,654
Expense recapture		—			14,721			—			—			—			—			—			—
Accrued advisory fees		10,340			88,141			20,313			24,911			30,431			9,022			7,758			21,793
Accrued expenses		72,998			85,413			43,738			53,836			51,819			39,051			47,998			38,037
Total Liabilities		790,254			194,924			70,115			85,212			88,314			54,137			61,819			912,043
NET ASSETS	$	25,403,889		$	214,390,509		$	50,114,373		$	59,982,594		$	72,794,683		$	21,509,772		$	18,591,652		$	62,794,379
NET ASSETS CONSIST OF:
Shares of beneficial interest	$	70,403,802		$	314,013,884		$	53,121,651		$	85,561,781		$	86,297,093		$	31,999,433		$	28,560,242		$	66,876,939
Undistributed net investment income (loss)		(4,517	)		(6,773	)		6,819			(4,673	)		179,692			(3,263	)		26,643			20,564
Accumulated net realized gain (loss) on investments		(48,487,627	)		(123,499,043	)		(12,916,107	)		(33,022,544	)		(21,571,977	)		(12,622,379	)		(11,743,879	)		(10,366,524	)
Net unrealized appreciation (depreciation) on investments		3,492,231			23,882,441			9,902,010			7,448,030			7,889,875			2,135,981			1,748,646			6,263,400
Net Assets	$	25,403,889		$	214,390,509		$	50,114,373		$	59,982,594		$	72,794,683		$	21,509,772		$	18,591,652		$	62,794,379
Shares outstanding (unlimited amount authorized, $0.01 par value)		1,800,000			10,900,000			3,600,000			3,250,000			4,550,000			1,000,000			1,200,000			3,800,000
Net asset value	$	14.11		$	19.67		$	13.92		$	18.46		$	16.00		$	21.51		$	15.49		$	16.52
Share price	$	14.11		$	19.86		$	14.09		$	18.46		$	16.01		$	21.51		$	15.84		$	16.54
Investments, at cost	$	21,971,408		$	190,699,985		$	40,260,227		$	52,541,797		$	64,896,870		$	19,418,482		$	16,891,611		$	56,562,092

See Notes to Financial Statements.

	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
ASSETS:
Investments, at value	$	125,949,245		$	47,488,449		$	170,514,079		$	57,688,534		$	24,310,948		$	28,620,628		$	67,690,793
Cash		—			—			—			—			16,813			—			—
Receivables:
Investments sold		683,651			1,054,154			—			—			18,934,510			—			1,147,347
Dividends		23,439			4,552			12,355			61,425			2			6,395			6,211
Expense waivers		285			6,022			—			5,254			10,324			7,519			4,486
Shares sold		—			—			—			—			9,703,348			—			—
Other assets		3,000			3,002			3,000			3,001			3,000			3,000			3,000
Total Assets		126,659,620			48,556,179			170,529,434			57,758,214			52,978,945			28,637,542			68,851,837
LIABILITES:
Due to custodian		6,218			6,063			6,535			6,064			—			6,063			6,064
Payables:
Shares repurchased		683,298			1,054,118			—			—			18,958,304			—			1,147,364
Investments purchased		—			—			—			—			9,697,172			—			—
Expense recapture		—			—			2,266			—			—			—			—
Accrued advisory fees		49,386			20,191			71,892			24,648			6,567			12,608			27,540
Accrued expenses		45,654			38,802			91,005			65,523			44,084			45,451			44,597
Total Liabilities		784,556			1,119,174			171,698			96,235			28,706,127			64,122			1,225,565
NET ASSETS	$	125,875,064		$	47,437,005		$	170,357,736		$	57,661,979		$	24,272,818		$	28,573,420		$	67,626,272
NET ASSETS CONSIST OF:
Shares of beneficial interest	$	126,462,445		$	45,864,110		$	304,280,720		$	81,366,751		$	32,542,850		$	71,527,190		$	74,547,956
Undistributed net investment income (loss)		(3,118	)		(2,894	)		(8,321	)		29,045			19,139			(3,887	)		(3,480	)
Accumulated net realized gain (loss) on investments		(16,758,945	)		(6,020,020	)		(158,535,010	)		(23,054,392	)		(7,431,413	)		(45,173,722	)		(15,198,221	)
Net unrealized appreciation (depreciation) on investments		16,174,682			7,595,809			24,620,347			(679,425	)		(857,758	)		2,223,839			8,280,017
Net Assets	$	125,875,064		$	47,437,005		$	170,357,736		$	57,661,979		$	24,272,818		$	28,573,420		$	67,626,272
Shares outstanding (unlimited amount authorized, $0.01 par value)		9,200,000			2,250,000			9,450,000			2,950,000			1,300,000			2,000,000			3,000,000
Net asset value	$	13.68		$	21.08		$	18.03		$	19.55		$	18.67		$	14.29		$	22.54
Share price	$	13.70		$	21.11		$	18.28		$	19.54		$	19.03		$	14.29		$	22.55
Investments, at cost	$	109,774,563		$	39,892,640		$	145,893,732		$	58,367,959		$	25,168,706		$	26,396,789		$	59,410,776

Statements of Operations

Year Ended April 30, 2010

	PowerShares Dynamic Banking Portfolio			PowerShares Dynamic Biotechnology & Genome Portfolio			PowerShares Dynamic Building & Construction Portfolio			PowerShares Dynamic Energy Exploration & Production Portfolio			PowerShares Dynamic Food & Beverage Portfolio			PowerShares Dynamic Healthcare Services Portfolio			PowerShares Dynamic Insurance Portfolio			PowerShares Dynamic Leisure and Entertainment Portfolio
INVESTMENT INCOME:
Dividend income	$	810,103		$	1,788,071		$	368,008		$	716,806		$	1,230,412		$	33,993		$	342,053		$	229,823
Foreign withholding tax		(213	)		—			—			—			—			—			—			—
Total Income		809,890			1,788,071			368,008			716,806			1,230,412			33,993			342,053			229,823
EXPENSES:
Advisory fees		146,295			905,585			262,725			286,505			301,837			67,911			93,480			111,018
Accounting & Administration fees		64,668			64,668			64,668			64,668			64,668			64,668			64,668			64,668
Printing		36,527			14,926			8,322			13,901			6,143			2,905			16,357			3,074
Professional fees		31,697			37,261			31,752			32,347			32,030			30,428			30,633			30,548
Sub-licensing		14,630			54,335			15,764			17,191			18,110			6,791			5,609			6,661
Custodian & transfer agent fees		9,739			15,140			7,657			9,242			9,337			7,482			8,916			8,085
Trustees		5,530			9,936			5,872			5,962			6,343			4,484			4,752			4,707
Listing fee and expenses		191			2,801			2,801			2,801			2,801			191			2,801			2,801
Other expenses		4,635			8,689			2,362			4,833			5,772			3,132			2,681			3,081
Total Expenses		313,912			1,113,341			401,923			437,450			447,041			187,992			229,897			234,643
(Waivers) and/or Recapture		(123,728	)		27,697			(70,889	)		(76,453	)		(66,726	)		(99,708	)		(112,112	)		(94,760	)
Net Expenses		190,184			1,141,038			331,034			360,997			380,315			88,284			117,785			139,883
Net Investment Income (Loss)		619,706			647,033			36,974			355,809			850,097			(54,291	)		224,268			89,940
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) from:
Investments		(7,350,116	)		(12,748,636	)		(2,091,543	)		(4,347,914	)		(2,131,683	)		(2,169,323	)		(1,282,445	)		(1,299,171	)
In-kind redemptions		(6,484,748	)		38,117,594			7,371,800			11,640,626			11,911,338			1,676,704			1,179,628			5,750,848
Net realized gain (loss)		(13,834,864	)		25,368,958			5,280,257			7,292,712			9,779,655			(492,619	)		(102,817	)		4,451,677
Net change in unrealized appreciation (depreciation) on: Investments		16,275,482			46,416,191			6,505,844			11,435,753			5,379,206			4,459,357			5,556,072			6,079,935
Net realized and unrealized gain on investments		2,440,618			71,785,149			11,786,101			18,728,465			15,158,861			3,966,738			5,453,255			10,531,612
Net increase in net assets resulting from operations	$	3,060,324		$	72,432,182		$	11,823,075		$	19,084,274		$	16,008,958		$	3,912,447		$	5,677,523		$	10,621,552

See Notes to Financial Statements.

	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
INVESTMENT INCOME:
Dividend income	$	565,277		$	35,716		$	1,594,514		$	1,003,760		$	383,719		$	355,608		$	137,538
Foreign withholding tax		—			—			(8,823	)		—			—			—			—
Total Income		565,277			35,716			1,585,691			1,003,760			383,719			355,608			137,538
EXPENSES:
Advisory fees		248,608			140,328			917,588			342,814			179,830			173,649			277,010
Accounting & Administration fees		64,668			64,668			65,613			64,668			64,668			64,668			64,668
Printing		3,432			4,630			35,436			23,148			12,339			10,143			8,050
Professional fees		31,135			30,654			37,906			33,009			30,853			31,328			31,851
Sub-licensing		14,916			8,420			55,055			20,569			10,790			10,419			16,621
Custodian & transfer agent fees		8,751			7,349			14,811			8,387			8,280			8,007			7,455
Trustees		5,242			4,900			10,233			6,681			5,530			5,305			5,805
Listing fee and expenses		2,801			2,801			2,801			2,801			2,801			2,801			2,801
Other expenses		4,335			3,787			9,430			3,733			5,159			4,575			3,972
Total Expenses		383,888			267,537			1,148,873			505,810			320,250			310,895			418,233
(Waivers) and/or Recapture		(70,642	)		(90,724	)		(327	)		(73,868	)		(93,665	)		(92,098	)		(69,201	)
Net Expenses		313,246			176,813			1,148,546			431,942			226,585			218,797			349,032
Net Investment Income (Loss)		252,031			(141,097	)		437,145			571,818			157,134			136,811			(211,494	)
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) from:
Investments		(322,718	)		(165,404	)		(22,651,711	)		(9,313,262	)		(1,086,940	)		(4,158,786	)		(492,830	)
In-kind redemptions		6,902,934			5,665,133			7,488,718			(227,754	)		24,858,074			6,883,170			14,460,870
Net realized gain (loss)		6,580,216			5,499,729			(15,162,993	)		(9,541,016	)		23,771,134			2,724,384			13,968,040
Net change in unrealized appreciation (depreciation) on: Investments		17,466,146			6,663,272			71,087,526			35,342,985			(17,762,532	)		7,568,493			6,367,617
Net realized and unrealized gain on investments		24,046,362			12,163,001			55,924,533			25,801,969			6,008,602			10,292,877			20,335,657
Net increase in net assets resulting from operations	$	24,298,393		$	12,021,904		$	56,361,678		$	26,373,787		$	6,165,736		$	10,429,688		$	20,124,163

Statements of Changes in Net Assets

	PowerShares Dynamic Banking Portfolio						PowerShares Dynamic Biotechnology & Genome Portfolio						PowerShares Dynamic Building & Construction Portfolio
	Year Ended April 30, 2010			Year Ended April 30, 2009			Year Ended April 30, 2010			Year Ended April 30, 2009			Year Ended April 30, 2010			Year Ended April 30, 2009
OPERATIONS:
Net investment income (loss)	$	619,706		$	3,065,051		$	647,033		$	(714,889	)	$	36,974		$	45,218
Net realized gain (loss) on investments		(13,834,864	)		(44,050,050	)		25,368,958			(45,252,998	)		5,280,257			(13,515,181	)
Net change in unrealized appreciation (depreciation) on investments		16,275,482			(14,785,699	)		46,416,191			(23,412,046	)		6,505,844			3,991,876
Net increase (decrease) in net assets resulting from operations		3,060,324			(55,770,698	)		72,432,182			(69,379,933	)		11,823,075			(9,478,087	)
Undistributed net investment income (loss) included in the price of units issued and redeemed		(11,158	)		(39,384	)		(63,453	)		(155,505	)		(20,556	)		108,043
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income		(1,325,518	)		(3,373,727	)		(647,086	)		—			(71,961	)		(22,670	)
Return of capital		(13,214	)		—			(217,733	)		—			—			—
Total distributions to shareholders		(1,338,732	)		(3,373,727	)		(864,819	)		—			(71,961	)		(22,670	)
SHAREHOLDER TRANSACTIONS:
Proceeds from shares sold		28,346,551			149,390,286			126,426,292			173,345,740			40,602,688			63,471,504
Value of shares repurchased		(79,438,109	)		(123,120,186	)		(122,899,742	)		(163,668,814	)		(51,381,416	)		(20,351,949	)
Net income equalization		11,158			39,384			63,453			155,505			20,556			(108,043	)
Net increase (decrease) in net assets resulting from shares transactions		(51,080,400	)		26,309,484			3,590,003			9,832,431			(10,758,172	)		43,011,512
Increase (Decrease) in Net Assets		(49,369,966	)		(32,874,325	)		75,093,913			(59,703,007	)		972,386			33,618,798
NET ASSETS:
Beginning of year		74,773,855			107,648,180			139,296,596			198,999,603			49,141,987			15,523,189
End of year	$	25,403,889		$	74,773,855		$	214,390,509		$	139,296,596		$	50,114,373		$	49,141,987
Undistributed net investment income (loss) at end of year	$	(4,517	)	$	701,295		$	(6,773	)	$	(6,720	)	$	6,819		$	41,806
CHANGES IN SHARES OUTSTANDING:
Shares sold		2,350,000			8,500,000			7,600,000			9,800,000			3,500,000			5,400,000
Shares repurchased		(6,550,000	)		(8,000,000	)		(7,500,000	)		(10,200,000	)		(4,400,000	)		(1,800,000	)
Shares outstanding, beginning of year		6,000,000			5,500,000			10,800,000			11,200,000			4,500,000			900,000
Shares outstanding, end of year		1,800,000			6,000,000			10,900,000			10,800,000			3,600,000			4,500,000

See Notes to Financial Statements.

	PowerShares Dynamic Energy Exploration & Production Portfolio						PowerShares Dynamic Food & Beverage Portfolio						PowerShares Dynamic Healthcare Services Portfolio
	Year Ended April 30, 2010			Year Ended April 30, 2009			Year Ended April 30, 2010			Year Ended April 30, 2009			Year Ended April 30, 2010			Year Ended April 30, 2009
OPERATIONS:
Net investment income (loss)	$	355,809		$	269,991		$	850,097		$	1,417,886		$	(54,291	)	$	(56,425	)
Net realized gain (loss) on investments		7,292,712			(40,050,400	)		9,779,655			(21,534,041	)		(492,619	)		(15,214,250	)
Net change in unrealized appreciation (depreciation) on investments		11,435,753			(26,868,276	)		5,379,206			672,398			4,459,357			5,594,158
Net increase (decrease) in net assets resulting from operations		19,084,274			(66,648,685	)		16,008,958			(19,443,757	)		3,912,447			(9,676,517	)
Undistributed net investment income (loss) included in the price of units issued and redeemed		(11,946	)		11,918			(275,996	)		207,792			4,069			(5,281	)
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income		(238,490	)		(345,726	)		(1,083,897	)		(1,004,394	)		—			—
Return of capital		(49,129	)		—			—			—			—			—
Total distributions to shareholders		(287,619	)		(345,726	)		(1,083,897	)		(1,004,394	)		—			—
SHAREHOLDER TRANSACTIONS:
Proceeds from shares sold		45,781,891			98,734,331			73,142,785			85,048,720			20,225,915			26,116,175
Value of shares repurchased		(55,939,908	)		(119,198,333	)		(101,865,601	)		(65,021,064	)		(13,428,937	)		(33,664,830	)
Net income equalization		11,946			(11,918	)		275,996			(207,792	)		(4,069	)		5,281
Net increase (decrease) in net assets resulting from shares transactions		(10,146,071	)		(20,475,920	)		(28,446,820	)		19,819,864			6,792,909			(7,543,374	)
Increase (Decrease) in Net Assets		8,638,638			(87,458,413	)		(13,797,755	)		(420,495	)		10,709,425			(17,225,172	)
NET ASSETS:
Beginning of year		51,343,956			138,802,369			86,592,438			87,012,933			10,800,347			28,025,519
End of year	$	59,982,594		$	51,343,956		$	72,794,683		$	86,592,438		$	21,509,772		$	10,800,347
Undistributed net investment income (loss) at end of year	$	(4,673	)	$	20,273		$	179,692		$	413,492		$	(3,263	)	$	(3,309	)
CHANGES IN SHARES OUTSTANDING:
Shares sold		2,850,000			4,700,000			5,200,000			6,400,000			1,050,000			1,200,000
Shares repurchased		(3,500,000	)		(6,000,000	)		(7,450,000	)		(4,800,000	)		(750,000	)		(1,700,000	)
Shares outstanding, beginning of year		3,900,000			5,200,000			6,800,000			5,200,000			700,000			1,200,000
Shares outstanding, end of year		3,250,000			3,900,000			4,550,000			6,800,000			1,000,000			700,000

Statements of Changes in Net Assets (Continued)

	PowerShares Dynamic Insurance Portfolio						PowerShares Dynamic Leisure and Entertainment Portfolio						PowerShares Dynamic Media Portfolio
	Year Ended April 30, 2010			Year Ended April 30, 2009			Year Ended April 30, 2010			Year Ended April 30, 2009			Year Ended April 30, 2010			Year Ended April 30, 2009
OPERATIONS:
Net investment income (loss)	$	224,268		$	326,562		$	89,940		$	104,077		$	252,031		$	92,883
Net realized gain (loss) on investments		(102,817	)		(8,673,069	)		4,451,677			(6,028,991	)		6,580,216			(14,576,403	)
Net change in unrealized appreciation (depreciation) on investments		5,556,072			(2,704,707	)		6,079,935			1,748,598			17,466,146			2,190,171
Net increase (decrease) in net assets resulting from operations		5,677,523			(11,051,214	)		10,621,552			(4,176,316	)		24,298,393			(12,293,349	)
Undistributed net investment income (loss) included in the price of units issued and redeemed		15,651			(22,747	)		(764,293	)		(45,282	)		(518,652	)		83,755
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income		(260,945	)		(304,900	)		(72,405	)		(101,048	)		(252,182	)		(95,850	)
Return of capital		—			—			—			—			(22,607	)		(48,916	)
Total distributions to shareholders		(260,945	)		(304,900	)		(72,405	)		(101,048	)		(274,789	)		(144,766	)
SHAREHOLDER TRANSACTIONS:
Proceeds from shares sold		12,074,164			40,493,250			73,178,081			33,503,371			129,819,265			33,989,362
Value of shares repurchased		(25,707,970	)		(36,340,003	)		(33,708,559	)		(31,564,852	)		(36,222,010	)		(44,220,220	)
Net income equalization		(15,651	)		22,747			764,293			45,282			518,652			(83,755	)
Net increase (decrease) in net assets resulting from shares transactions		(13,649,457	)		4,175,994			40,233,815			1,983,801			94,115,907			(10,314,613	)
Increase (Decrease) in Net Assets		(8,217,228	)		(7,202,867	)		50,018,669			(2,338,845	)		117,620,859			(22,668,973	)
NET ASSETS:
Beginning of year		26,808,880			34,011,747			12,775,710			15,114,555			8,254,205			30,923,178
End of year	$	18,591,652		$	26,808,880		$	62,794,379		$	12,775,710		$	125,875,064		$	8,254,205
Undistributed net investment income (loss) at end of year	$	26,643		$	63,320		$	20,564		$	3,029		$	(3,118	)	$	(2,967	)
CHANGES IN SHARES OUTSTANDING:
Shares sold		900,000			2,900,000			5,200,000			2,900,000			11,300,000			3,100,000
Shares repurchased		(2,000,000	)		(2,700,000	)		(2,600,000	)		(2,700,000	)		(3,100,000	)		(4,400,000	)
Shares outstanding, beginning of year		2,300,000			2,100,000			1,200,000			1,000,000			1,000,000			2,300,000
Shares outstanding, end of year		1,200,000			2,300,000			3,800,000			1,200,000			9,200,000			1,000,000

See Notes to Financial Statements.

	PowerShares Dynamic Networking Portfolio						PowerShares Dynamic Oil & Gas Services Portfolio						PowerShares Dynamic Pharmaceuticals Portfolio
	Year Ended April 30, 2010			Year Ended April 30, 2009			Year Ended April 30, 2010			Year Ended April 30, 2009			Year Ended April 30, 2010			Year Ended April 30, 2009
OPERATIONS:
Net investment income (loss)	$	(141,097	)	$	(42,042	)	$	437,145		$	695,080		$	571,818		$	1,192,621
Net realized gain (loss) on investments		5,499,729			(2,731,762	)		(15,162,993	)		(93,981,939	)		(9,541,016	)		(7,401,862	)
Net change in unrealized appreciation (depreciation) on investments		6,663,272			2,466,022			71,087,526			(103,881,339	)		35,342,985			(25,038,354	)
Net increase (decrease) in net assets resulting from operations		12,021,904			(307,782	)		56,361,678			(197,168,198	)		26,373,787			(31,247,595	)
Undistributed net investment income (loss) included in the price of units issued and redeemed		27,812			74,424			(3,035	)		19,943			(161,901	)		(32,948	)
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income		—			—			(642,185	)		(543,711	)		(992,451	)		(949,059	)
Return of capital		—			—			(258,092	)		—			—			—
Total distributions to shareholders		—			—			(900,277	)		(543,711	)		(992,451	)		(949,059	)
SHAREHOLDER TRANSACTIONS:
Proceeds from shares sold		39,996,959			16,238,074			83,424,925			224,020,307			19,257,512			97,609,610
Value of shares repurchased		(20,858,030	)		(12,485,502	)		(124,244,327	)		(250,531,653	)		(91,325,601	)		(67,679,197	)
Net income equalization		(27,812	)		(74,424	)		3,035			(19,943	)		161,901			32,948
Net increase (decrease) in net assets resulting from shares transactions		19,111,117			3,678,148			(40,816,367	)		(26,531,289	)		(71,906,188	)		29,963,361
Increase (Decrease) in Net Assets		31,160,833			3,444,790			14,641,999			(224,223,255	)		(46,686,753	)		(2,266,241	)
NET ASSETS:
Beginning of year		16,276,172			12,831,382			155,715,737			379,938,992			104,348,732			106,614,973
End of year	$	47,437,005		$	16,276,172		$	170,357,736		$	155,715,737		$	57,661,979		$	104,348,732
Undistributed net investment income (loss) at end of year	$	(2,894	)	$	(2,677	)	$	(8,321	)	$	196,719		$	29,045		$	449,678
CHANGES IN SHARES OUTSTANDING:
Shares sold		2,250,000			1,300,000			5,250,000			10,100,000			1,150,000			5,800,000
Shares repurchased		(1,200,000	)		(900,000	)		(7,700,000	)		(11,200,000	)		(5,700,000	)		(4,500,000	)
Shares outstanding, beginning of year		1,200,000			800,000			11,900,000			13,000,000			7,500,000			6,200,000
Shares outstanding, end of year		2,250,000			1,200,000			9,450,000			11,900,000			2,950,000			7,500,000

Statements of Changes in Net Assets (Continued)

	PowerShares Dynamic Retail Portfolio						PowerShares Dynamic Semiconductors Portfolio
	Year Ended April 30, 2010			Year Ended April 30, 2009			Year Ended April 30, 2010			Year Ended April 30, 2009
OPERATIONS:
Net investment income (loss)	$	157,134		$	106,546		$	136,811		$	146,834
Net realized gain (loss) on investments		23,771,134			(6,551,977	)		2,724,384			(27,291,485	)
Net change in unrealized appreciation (depreciation) on investments		(17,762,532	)		16,783,713			7,568,493			3,722,475
Net increase (decrease) in net assets resulting from operations		6,165,736			10,338,282			10,429,688			(23,422,176	)
Undistributed net investment income (loss) included in the price of units issued and redeemed		241,079			(334,997	)		(26,642	)		(23,617	)
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income		(196,273	)		(48,268	)		(146,532	)		(141,000	)
Return of capital		—			—			(8,521	)		—
Total distributions to shareholders		(196,273	)		(48,268	)		(155,053	)		(141,000	)
SHAREHOLDER TRANSACTIONS:
Proceeds from shares sold		82,184,260			109,311,011			34,613,789			37,774,948
Value of shares repurchased		(141,487,827	)		(56,384,978	)		(52,688,497	)		(52,894,493	)
Net income equalization		(241,079	)		334,997			26,642			23,617
Net increase (decrease) in net assets resulting from shares transactions		(59,544,646	)		53,261,030			(18,048,066	)		(15,095,928	)
Increase (Decrease) in Net Assets		(53,334,104	)		63,216,047			(7,800,073	)		(38,682,721	)
NET ASSETS:
Beginning of year		77,606,922			14,390,875			36,373,493			75,056,214
End of year	$	24,272,818		$	77,606,922		$	28,573,420		$	36,373,493
Undistributed net investment income (loss) at end of year	$	19,139		$	58,278		$	(3,887	)	$	5,834
CHANGES IN SHARES OUTSTANDING:
Shares sold		5,050,000			8,500,000			2,900,000			3,000,000
Shares repurchased		(9,050,000	)		(4,100,000	)		(4,400,000	)		(4,100,000	)
Shares outstanding, beginning of year		5,300,000			900,000			3,500,000			4,600,000
Shares outstanding, end of year		1,300,000			5,300,000			2,000,000			3,500,000

See Notes to Financial Statements.

	PowerShares Dynamic Software Portfolio
	Year Ended April 30, 2010			Year Ended April 30, 2009
OPERATIONS:
Net investment income (loss)	$	(211,494	)	$	(124,681	)
Net realized gain (loss) on investments		13,968,040			(5,090,447	)
Net change in unrealized appreciation (depreciation) on investments		6,367,617			2,850,819
Net increase (decrease) in net assets resulting from operations		20,124,163			(2,364,309	)
Undistributed net investment income (loss) included in the price of units issued and redeemed		7,870			36,904
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income		—			—
Return of capital		—			—
Total distributions to shareholders		—			—
SHAREHOLDER TRANSACTIONS:
Proceeds from shares sold		65,333,131			29,449,067
Value of shares repurchased		(54,727,511	)		(25,243,698	)
Net income equalization		(7,870	)		(36,904	)
Net increase (decrease) in net assets resulting from shares transactions		10,597,750			4,168,465
Increase (Decrease) in Net Assets		30,729,783			1,841,060
NET ASSETS:
Beginning of year		36,896,489			35,055,429
End of year	$	67,626,272		$	36,896,489
Undistributed net investment income (loss) at end of year	$	(3,480	)	$	(3,232	)
CHANGES IN SHARES OUTSTANDING:
Shares sold		3,450,000			2,000,000
Shares repurchased		(2,850,000	)		(1,600,000	)
Shares outstanding, beginning of year		2,400,000			2,000,000
Shares outstanding, end of year		3,000,000			2,400,000

Financial Highlights

PowerShares Dynamic Banking Portfolio

	Year Ended April 30,									For the Period October 12, 2006* Through
	2010			2009			2008			April 30, 2007
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	12.46		$	19.57		$	23.68		$	25.17
Net investment income**		0.24			0.46			0.52			0.22
Net realized and unrealized gain (loss) on investments		1.89			(7.04	)		(4.22	)		(1.49	)
Total from investment operations		2.13			(6.58	)		(3.70	)		(1.27	)
Distributions to shareholders from:
Net investment income		(0.48	)		(0.53	)		(0.41	)		(0.22	)
Return of capital		(0.00	)^(a)		—			—			—
Total distributions		(0.48	)		(0.53	)		(0.41	)		(0.22	)
Net asset value at end of period	$	14.11		$	12.46		$	19.57		$	23.68
Share price at end of period***	$	14.11		$	12.43
NET ASSET VALUE, TOTAL RETURN:****		17.91	%		(34.34	)%		(15.80	)%		(5.08	)%
SHARE PRICE TOTAL RETURN****		18.21	%		(34.49	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	25,404		$	74,774		$	107,648		$	4,736
Ratio to average net assets of:
Expenses, after (Waivers) and/or Recapture		0.65	%		0.65	%		0.66	%		0.76	%†
Expenses, prior to (Waivers) and/or Recapture		1.07	%		0.72	%		0.78	%		1.88	%†
Net investment income, after (Waivers) and/or Recapture		2.12	%		2.82	%		2.71	%		1.58	%†
Portfolio turnover rate ††		84	%		93	%		111	%		57	%
Undistributed net investment loss included in price of units issued and redeemed**#	$	(0.00	)^(a)	$	(0.01	)	$	(0.05	)	$	(0.06	)

PowerShares Dynamic Biotechnology & Genome Portfolio

	Year Ended April 30,												For the Period June 23, 2005* Through
	2010			2009			2008			2007			April 30, 2006
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	12.90		$	17.77		$	19.30		$	17.24		$	14.71
Net investment income (loss)**		0.06	†††		(0.06	)		(0.11	)		(0.10	)		(0.08	)
Net realized and unrealized gain (loss) on investments		6.79			(4.81	)		(1.42	)		2.16			2.61
Total from investment operations		6.85			(4.87	)		(1.53	)		2.06			2.53
Distributions to shareholders from:
Net investment income		(0.06	)		—			—			—			—
Return of capital		(0.02	)		—			—			—			—
Total distributions		(0.08	)		—			—			—			—
Net asset value at end of period	$	19.67		$	12.90		$	17.77		$	19.30		$	17.24
Share price at end of period***	$	19.86		$	12.87
NET ASSET VALUE, TOTAL RETURN:****		53.19	%		(27.41	)%		(7.93	)%		11.95	%		17.20	%
SHARE PRICE TOTAL RETURN****		53.63	%		(27.62	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	214,391		$	139,297		$	199,000		$	258,616		$	250,021
Ratio to average net assets of:
Expenses, after (Waivers) and/or Recapture		0.63	%		0.63	%		0.63	%		0.63	%		0.64	%†
Expenses, prior to (Waivers) and/or Recapture		0.61	%		0.62	%		0.62	%		0.66	%		0.67	%†
Net investment income (loss), after (Waivers) and/or Recapture		0.36	%†††		(0.38	)%		(0.57	)%		(0.56	)%		(0.55	)%†
Portfolio turnover rate ††		80	%		93	%		91	%		82	%		49	%
Undistributed net investment income (loss) included in price of units issued and redeemed**#	$	(0.01	)	$	(0.01	)	$	0.01		$	0.01			—

* Commencement of Investment Operations.

** Based on average shares outstanding.

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

† Annualized.

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

††† Net investment income per share and the ratio of net investment income to average net assets include a special cash dividend received of $1.41 per share owned of PDL BioPharma, Inc. on December 15, 2009. Net investment loss per share and the ratio of net investment loss to average net assets excluding the special dividend are $(0.03) and (0.18)%, respectively.

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

(a) Amount represents less than $0.005.

See Notes to Financial Statements.

Financial Highlights (Continued)

PowerShares Dynamic Building & Construction Portfolio

	Year Ended April 30,												For the Period October 26, 2005* Through
	2010			2009			2008			2007			April 30, 2006
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	10.92		$	17.25		$	18.70		$	18.15		$	15.26
Net investment income**		0.01			0.02			0.02			0.02			0.00	^(a)
Net realized and unrealized gain (loss) on investments		3.01			(6.33	)		(1.45	)		0.53			2.90
Total from investment operations		3.02			(6.31	)		(1.43	)		0.55			2.90
Distributions to shareholders from:
Net investment income		(0.02	)		(0.02	)		(0.02	)		0.00	^(a)		(0.01	)
Net asset value at end of period	$	13.92		$	10.92		$	17.25		$	18.70		$	18.15
Share price at end of period***	$	14.09		$	10.94
NET ASSET VALUE, TOTAL RETURN:****		27.65	%		(36.61	)%		(7.66	)%		3.06	%		18.99	%
SHARE PRICE TOTAL RETURN****		27.42	%		(36.46	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	50,114		$	49,142		$	15,523		$	18,699		$	25,406
Ratio to average net assets of:
Expenses, after (Waivers) and/or Recapture		0.63	%		0.63	%		0.63	%		0.63	%		0.67	%†
Expenses, prior to (Waivers) and/or Recapture		0.76	%		1.06	%		1.18	%		1.65	%		0.80	%†
Net investment income (loss), after (Waivers) and/or Recapture		0.07	%		0.19	%		0.09	%		0.15	%		0.00	†^(a)
Portfolio turnover rate ††		59	%		50	%		75	%		59	%		29	%
Undistributed net investment income (loss) included in price of units issued and redeemed**#	$	(0.00	)^(a)	$	0.05		$	(0.02	)	$	0.01			—

PowerShares Dynamic Energy Exploration & Production Portfolio

	Year Ended April 30,												For the Period October 26, 2005* Through
	2010			2009			2008			2007			April 30, 2006
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	13.17		$	26.69		$	21.29		$	18.63		$	16.03
Net investment income**		0.10			0.06			0.05			0.09			0.00	^(a)
Net realized and unrealized gain (loss) on investments		5.27			(13.50	)		5.41			2.63			2.62
Total from investment operations		5.37			(13.44	)		5.46			2.72			2.62
Distributions to shareholders from:
Net investment income		(0.07	)		(0.08	)		(0.06	)		(0.06	)		(0.02	)
Return of capital		(0.01	)		—			0.00	^(a)		—			—
Total distributions		(0.08	)		(0.08	)		(0.06	)		(0.06	)		(0.02	)
Net asset value at end of period	$	18.46		$	13.17		$	26.69		$	21.29		$	18.63
Share price at end of period***	$	18.46		$	13.15
NET ASSET VALUE, TOTAL RETURN:****		40.87	%		(50.42	)%		25.69	%		14.66	%		16.33	%
SHARE PRICE TOTAL RETURN****		41.08	%		(50.44	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	59,983		$	51,344		$	138,802		$	123,488		$	111,795
Ratio to average net assets of:
Expenses, after (Waivers) and/or Recapture		0.63	%		0.63	%		0.63	%		0.63	%		0.66	%†
Expenses, prior to (Waivers) and/or Recapture		0.76	%		0.69	%		0.65	%		0.74	%		0.75	%†
Net investment income (loss), after (Waivers) and/or Recapture		0.62	%		0.30	%		0.23	%		0.47	%		(0.01	)%†
Portfolio turnover rate ††		68	%		68	%		39	%		59	%		19	%
Undistributed net investment income (loss) included in price of units issued and redeemed**#	$	(0.00	)^(a)	$	0.00	^(a)	$	0.00	^(a)	$	(0.01	)		—

* Commencement of Investment Operations.

** Based on average shares outstanding.

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

† Annualized.

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

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

(a) Amount represents less than $0.005 or 0.005%.

See Notes to Financial Statements.

Financial Highlights (Continued)

PowerShares Dynamic Food & Beverage Portfolio

	Year Ended April 30,												For the Period June 23, 2005* Through
	2010			2009			2008			2007			April 30, 2006
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	12.73		$	16.73		$	17.53		$	15.17		$	14.85
Net investment income**		0.20			0.25			0.18			0.39			0.11
Net realized and unrealized gain (loss) on investments		3.33			(4.08	)		(0.42	)		2.14			0.30
Total from investment operations		3.53			(3.83	)		(0.24	)		2.53			0.41
Distributions to shareholders from:
Net investment income		(0.26	)		(0.17	)		(0.40	)		(0.17	)		(0.09	)
Return of capital		—			—			(0.16	)		—			—
Total distributions		(0.26	)		(0.17	)		(0.56	)		(0.17	)		(0.09	)
Net asset value at end of period	$	16.00		$	12.73		$	16.73		$	17.53		$	15.17
Share price at end of period***	$	16.01		$	12.74
NET ASSET VALUE, TOTAL RETURN:****		28.08	%		(22.99	)%		(1.40	)%		16.79	%		2.78	%
SHARE PRICE TOTAL RETURN****		28.06	%		(22.89	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	72,795		$	86,592		$	87,013		$	33,314		$	24,270
Ratio to average net assets of:
Expenses, after (Waivers) and/or Recapture		0.63	%		0.63	%		0.63	%		0.64	%		0.69	%†
Expenses, prior to (Waivers) and/or Recapture		0.74	%		0.71	%		0.88	%		1.15	%		1.07	%†
Net investment income, after (Waivers) and/or Recapture		1.41	%		1.80	%		1.11	%		2.42	%		0.91	%†
Portfolio turnover rate ††		65	%		65	%		64	%		50	%		72	%
Undistributed net investment income (loss) included in price of units issued and redeemed**#	$	(0.06	)	$	0.04		$	0.07		$	0.02			—

PowerShares Dynamic Healthcare Services Portfolio

	Year Ended April 30,									For the Period October 12, 2006* Through
	2010			2009			2008			April 30, 2007
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	15.43		$	23.35		$	28.04		$	24.88
Net investment income (loss)**		(0.08	)		(0.05	)		(0.16	)		(0.08	)
Net realized and unrealized gain (loss) on investments		6.16			(7.87	)		(4.53	)		3.24
Total from investment operations		6.08			(7.92	)		(4.69	)		3.16
Net asset value at end of period	$	21.51		$	15.43		$	23.35		$	28.04
Share price at end of period***	$	21.51		$	15.43
NET ASSET VALUE, TOTAL RETURN:****		39.40	%		(33.92	)%		(16.73	)%		12.70	%
SHARE PRICE TOTAL RETURN****		39.40	%		(33.89	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	21,510		$	10,800		$	28,026		$	28,041
Ratio to average net assets of:
Expenses, after (Waivers) and/or Recapture		0.65	%		0.65	%		0.67	%		0.70	%†
Expenses, prior to (Waivers) and/or Recapture		1.38	%		1.10	%		0.80	%		1.20	%†
Net investment income (loss), after (Waivers) and/or Recapture		(0.40	)%		(0.27	)%		(0.54	)%		(0.56	)%†
Portfolio turnover rate ††		68	%		91	%		63	%		13	%
Undistributed net investment income (loss) included in price of units issued and redeemed**#	$	0.01		$	(0.01	)	$	0.04		$	(0.04	)

* Commencement of Investment Operations.

** Based on average shares outstanding.

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

† Annualized.

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

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

See Notes to Financial Statements.

Financial Highlights (Continued)

PowerShares Dynamic Insurance Portfolio

	Year Ended April 30,												For the Period October 26, 2005* Through
	2010			2009			2008			2007			April 30, 2006
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	11.66		$	16.20		$	18.84		$	17.31		$	15.44
Net investment income**		0.16			0.15			0.27	†††		0.15			0.07
Net realized and unrealized gain (loss) on investments		3.86			(4.54	)		(2.61	)		1.51			1.86
Total from investment operations		4.02			(4.39	)		(2.34	)		1.66			1.93
Distributions to shareholders from:
Net investment income		(0.19	)		(0.15	)		(0.30	)		(0.13	)		(0.06	)
Net asset value at end of period	$	15.49		$	11.66		$	16.20		$	18.84		$	17.31
Share price at end of period***	$	15.84		$	11.61
NET ASSET VALUE, TOTAL RETURN:****		34.85	%		(27.26	)%		(12.56	)%		9.62	%		12.54	%
SHARE PRICE TOTAL RETURN****		35.53	%		(27.53	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	18,592		$	26,809		$	34,012		$	58,401		$	31,164
Ratio to average net assets of:
Expenses, after (Waivers) and/or Recapture		0.63	%		0.63	%		0.63	%		0.63	%		0.68	%†
Expenses, prior to (Waivers) and/or Recapture		1.23	%		0.98	%		0.82	%		0.96	%		0.87	%†
Net investment income, after (Waivers) and/or Recapture		1.20	%		1.13	%		1.54	%†††		0.87	%		0.81	%†
Portfolio turnover rate ††		72	%		52	%		82	%		40	%		30	%
Undistributed net investment income (loss) included in price of units issued and redeemed**#	$	0.01		$	(0.01	)	$	(0.03	)	$	0.01			—

PowerShares Dynamic Leisure and Entertainment Portfolio

	Year Ended April 30,												For the Period June 23, 2005* Through
	2010			2009			2008			2007			April 30, 2006
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	10.65		$	15.11		$	18.32		$	16.29		$	14.77
Net investment income**		0.05			0.10			0.12			0.07			0.03
Net realized and unrealized gain (loss) on investments		5.88			(4.46	)		(2.75	)		2.05			1.51
Total from investment operations		5.93			(4.36	)		(2.63	)		2.12			1.54
Distributions to shareholders from:
Net investment income		(0.06	)		(0.10	)		(0.19	)		(0.08	)		(0.02	)
Return of capital		—			—			(0.39	)		(0.01	)		—
Total distributions		(0.06	)		(0.10	)		(0.58	)		(0.09	)		(0.02	)
Net asset value at end of period	$	16.52		$	10.65		$	15.11		$	18.32		$	16.29
Share price at end of period***	$	16.54		$	10.63
NET ASSET VALUE, TOTAL RETURN:****		55.81	%		(28.91	)%		(14.58	)%		13.02	%		10.41	%
SHARE PRICE TOTAL RETURN****		56.29	%		(29.09	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	62,794		$	12,776		$	15,115		$	49,472		$	27,701
Ratio to average net assets of:
Expenses, after (Waivers) and/or Recapture		0.63	%		0.63	%		0.63	%		0.64	%		0.68	%†
Expenses, prior to (Waivers) and/or Recapture		1.06	%		1.65	%		0.95	%		1.07	%		1.03	%†
Net investment income, after (Waivers) and/or Recapture		0.41	%		0.96	%		0.70	%		0.42	%		0.22	%†
Portfolio turnover rate ††		68	%		50	%		58	%		35	%		48	%
Undistributed net investment income (loss) included in price of units issued and redeemed**#	$	(0.44	)	$	(0.04	)	$	(0.16	)	$	0.01			—

* Commencement of Investment Operations.

** Based on average shares outstanding.

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

† Annualized.

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

††† Net investment income per share and the ratio of net investment income to average net assets include a special cash dividend received of $2.00 per share owned of Progressive Corp. (The) on September 14, 2007. Net investment income per share and the ratio of net investment income to average net assets excluding the special dividend are $0.17 and 0.96%, respectively.

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

See Notes to Financial Statements.

Financial Highlights (Continued)

PowerShares Dynamic Media Portfolio

	Year Ended April 30,												For the Period June 23, 2005* Through
	2010			2009			2008			2007			April 30, 2006
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	8.25		$	13.44		$	16.48		$	14.44		$	14.93
Net investment income**		0.06			0.05			0.06			0.04			0.02
Net realized and unrealized gain (loss) on investments		5.42			(5.18	)		(2.82	)		2.04			(0.49	)
Total from investment operations		5.48			(5.13	)		(2.76	)		2.08			(0.47	)
Distributions to shareholders from:
Net investment income		(0.05	)		(0.04	)		(0.06	)		(0.04	)		(0.02	)
Return of capital		(0.00	)^(a)		(0.02	)		(0.22	)		—			—
Total distributions		(0.05	)		(0.06	)		(0.28	)		(0.04	)		(0.02	)
Net asset value at end of period	$	13.68		$	8.25		$	13.44		$	16.48		$	14.44
Share price at end of period***	$	13.70		$	8.26
NET ASSET VALUE, TOTAL RETURN:****		66.55	%		(38.30	)%		(16.91	)%		14.42	%		(3.15	)%
SHARE PRICE TOTAL RETURN****		66.59	%		(38.31	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	125,875		$	8,254		$	30,923		$	31,305		$	24,543
Ratio to average net assets of:
Expenses, after (Waivers) and/or Recapture		0.63	%		0.63	%		0.63	%		0.64	%		0.68	%†
Expenses, prior to (Waivers) and/or Recapture		0.77	%		1.22	%		0.85	%		1.24	%		1.04	%†
Net investment income (loss), after (Waivers) and/or Recapture		0.51	%		0.52	%		0.36	%		0.25	%		0.19	%†
Portfolio turnover rate ††		50	%		69	%		62	%		43	%		68	%
Undistributed net investment income (loss) included in price of units issued and redeemed**#	$	(0.12	)	$	0.05		$	(0.04	)	$	(0.01	)		—

PowerShares Dynamic Networking Portfolio

	Year Ended April 30,												For the Period June 23, 2005* Through
	2010			2009			2008			2007			April 30, 2006
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	13.56		$	16.04		$	18.68		$	17.38		$	14.96
Net investment income (loss)**		(0.09	)		(0.06	)		(0.09	)		(0.09	)		(0.08	)
Net realized and unrealized gain (loss) on investments		7.61			(2.42	)		(2.55	)		1.39			2.50
Total from investment operations		7.52			(2.48	)		(2.64	)		1.30			2.42
Net asset value at end of period	$	21.08		$	13.56		$	16.04		$	18.68		$	17.38
Share price at end of period***	$	21.11		$	13.58
NET ASSET VALUE, TOTAL RETURN:****		55.46	%		(15.46	)%		(14.13	)%		7.48	%		16.18	%
SHARE PRICE TOTAL RETURN****		55.45	%		(15.28	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	47,437		$	16,276		$	12,831		$	18,677		$	27,806
Ratio to average net assets of:
Expenses, after (Waivers) and/or Recapture		0.63	%		0.63	%		0.63	%		0.64	%		0.68	%†
Expenses, prior to (Waivers) and/or Recapture		0.95	%		1.92	%		1.25	%		1.24	%		1.03	%†
Net investment income (loss), after (Waivers) and/or Recapture		(0.50	)%		(0.49	)%		(0.51	)%		(0.54	)%		(0.59	)%†
Portfolio turnover rate ††		29	%		23	%		17	%		62	%		42	%
Undistributed net investment income included in price of units issued and redeemed**#	$	0.02		$	0.11		$	0.01		$	0.03			—

* Commencement of Investment Operations.

** Based on average shares outstanding.

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

† Annualized.

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

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

(a) Amount represents less than $0.005.

See Notes to Financial Statements.

Financial Highlights (Continued)

PowerShares Dynamic Oil & Gas Services Portfolio

	Year Ended April 30,												For the Period October 26, 2005* Through
	2010			2009			2008			2007			April 30, 2006
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	13.09		$	29.23		$	22.70		$	21.41		$	16.43
Net investment income (loss)**		0.04			0.06			(0.02	)		0.00	^(a)		(0.01	)
Net realized and unrealized gain (loss) on investments		4.98			(16.16	)		6.55			1.29			4.99
Total from investment operations		5.02			(16.10	)		6.53			1.29			4.98
Distributions to shareholders from:
Net investment income		(0.06	)		(0.04	)		—			—			—
Return of capital		(0.02	)		—			—			—			—
Total distributions		(0.08	)		(0.04	)		—			—			—
Net asset value at end of period	$	18.03		$	13.09		$	29.23		$	22.70		$	21.41
Share price at end of period***	$	18.28		$	13.11
NET ASSET VALUE, TOTAL RETURN:****		38.41	%		(55.04	)%		28.77	%		6.03	%		30.31	%
SHARE PRICE TOTAL RETURN****		38.13	%		(54.93	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	170,358		$	155,716		$	379,939		$	272,456		$	336,132
Ratio to average net assets of:
Expenses, after (Waivers) and/or Recapture		0.63	%		0.62	%		0.62	%		0.63	%		0.64	%†
Expenses, prior to (Waivers) and/or Recapture		0.63	%		0.61	%		0.60	%		0.65	%		0.67	%†
Net investment income (loss), after (Waivers) and/or Recapture		0.24	%		0.29	%		(0.06	)%		0.02	%		(0.10	)%†
Portfolio turnover rate ††		56	%		48	%		67	%		76	%		10	%
Undistributed net investment income (loss) included in price of units issued and redeemed**#	$	(0.00	)^(a)	$	0.00	^(a)	$	0.00	^(a)	$	0.00	^(a)		—

PowerShares Dynamic Pharmaceuticals Portfolio

	Year Ended April 30,												For the Period June 23, 2005* Through
	2010			2009			2008			2007			April 30, 2006
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	13.91		$	17.20		$	19.61		$	16.54		$	14.84
Net investment income**		0.14			0.15			0.10			0.08			0.06
Net realized and unrealized gain (loss) on investments		5.76			(3.32	)		(2.45	)		3.08			1.68
Total from investment operations		5.90			(3.17	)		(2.35	)		3.16			1.74
Distributions to shareholders from:
Net investment income		(0.26	)		(0.12	)		(0.06	)		(0.08	)		(0.04	)
Return of capital		—			—			—			(0.01	)		—
Total distributions		(0.26	)		(0.12	)		(0.06	)		(0.09	)		(0.04	)
Net asset value at end of period	$	19.55		$	13.91		$	17.20		$	19.61		$	16.54
Share price at end of period***	$	19.54		$	13.92
NET ASSET VALUE, TOTAL RETURN:****		42.69	%		(18.52	)%		(11.99	)%		19.20	%		11.74	%
SHARE PRICE TOTAL RETURN****		42.51	%		(18.41	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	57,662		$	104,349		$	106,615		$	82,345		$	66,157
Ratio to average net assets of:
Expenses, after (Waivers) and/or Recapture		0.63	%		0.63	%		0.63	%		0.63	%		0.66	%†
Expenses, prior to (Waivers) and/or Recapture		0.74	%		0.66	%		0.69	%		0.80	%		0.88	%†
Net investment income, after (Waivers) and/or Recapture		0.83	%		0.95	%		0.52	%		0.43	%		0.42	%†
Portfolio turnover rate ††		35	%		31	%		45	%		29	%		29	%
Undistributed net investment income (loss) included in price of units issued and redeemed**#	$	(0.04	)	$	0.00	^(a)	$	(0.01	)	$	(0.01	)		—

* Commencement of Investment Operations.

** Based on average shares outstanding.

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

† Annualized.

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

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

(a) Amount represents less than $0.005.

See Notes to Financial Statements.

Financial Highlights (Continued)

PowerShares Dynamic Retail Portfolio

	Year Ended April 30,												For the Period October 26, 2005* Through
	2010			2009			2008			2007			April 30, 2006
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	14.64		$	15.99		$	20.02		$	18.29		$	15.13
Net investment income**		0.06			0.05			0.04			0.07			0.01
Net realized and unrealized gain (loss) on investments		4.08			(1.36	)		(3.92	)		1.71			3.16
Total from investment operations		4.14			(1.31	)		(3.88	)		1.78			3.17
Distributions to shareholders from:
Net investment income		(0.11	)		(0.04	)		(0.10	)		(0.05	)		(0.01	)
Return of capital		—			—			(0.05	)		—			—
Total distributions		(0.11	)		(0.04	)		(0.15	)		(0.05	)		(0.01	)
Net asset value at end of period	$	18.67		$	14.64		$	15.99		$	20.02		$	18.29
Share price at end of period***	$	19.03		$	14.64
NET ASSET VALUE, TOTAL RETURN:****		28.49	%		(8.11	)%		(19.41	)%		9.72	%		20.98	%
SHARE PRICE TOTAL RETURN****		28.56	%		(8.11	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	24,273		$	77,607		$	14,391		$	24,029		$	23,783
Ratio to average net assets of:
Expenses, after (Waivers) and/or Recapture		0.63	%		0.63	%		0.63	%		0.64	%		0.70	%†
Expenses, prior to (Waivers) and/or Recapture		0.89	%		1.08	%		1.46	%		1.41	%		0.97	%†
Net investment income, after (Waivers) and/or Recapture		0.44	%		0.45	%		0.22	%		0.35	%		0.17	%†
Portfolio turnover rate ††		52	%		53	%		198	%		73	%		11	%
Undistributed net investment income (loss) included in price of units issued and redeemed**#	$	0.10		$	(0.17	)	$	(0.07	)	$	0.00	^(a)		—

PowerShares Dynamic Semiconductors Portfolio

	Year Ended April 30,												For the Period June 23, 2005* Through
	2010			2009			2008			2007			April 30, 2006
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	10.39		$	16.32		$	19.05		$	20.18		$	14.93
Net investment income (loss)**		0.05			0.04			(0.01	)		(0.04	)		(0.05	)
Net realized and unrealized gain (loss) on investments		3.91			(5.92	)		(2.72	)		(1.09	)		5.30
Total from investment operations		3.96			(5.88	)		(2.73	)		(1.13	)		5.25
Distribution to shareholder from:
Net investment income		(0.06	)		(0.05	)		—			—			—
Return of capital		(0.00	)^(a)		—			—			—			—
Total distributions		(0.06	)		(0.05	)		—			—			—
Net asset value at end of period	$	14.29		$	10.39		$	16.32		$	19.05		$	20.18
Share price at end of period***	$	14.29		$	10.39
NET ASSET VALUE, TOTAL RETURN:****		38.16	%		(36.01	)%		(14.33	)%		(5.60	)%		35.16	%
SHARE PRICE TOTAL RETURN****		38.16	%		(36.01	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	28,573		$	36,373		$	75,056		$	161,886		$	106,929
Ratio to average net assets of:
Expenses, after (Waivers) and/or Recapture		0.63	%		0.63	%		0.63	%		0.63	%		0.65	%†
Expenses, prior to (Waivers) and/or Recapture		0.90	%		0.82	%		0.67	%		0.78	%		0.75	%†
Net investment income (loss), after (Waivers) and/or Recapture		0.39	%		0.32	%		(0.04	)%		(0.23	)%		(0.33	)%†
Portfolio turnover rate ††		68	%		65	%		56	%		51	%		42	%
Undistributed net investment income (loss) included in price of units issued and redeemed**#	$	(0.01	)	$	(0.01	)	$	0.02		$	(0.01	)		—

* Commencement of Investment Operations.

** Based on average shares outstanding.

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

† Annualized.

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

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

(a) Amount represents less than $0.005.

See Notes to Financial Statements.

Financial Highlights (Continued)

PowerShares Dynamic Software Portfolio

	Year Ended April 30,												For the Period June 23, 2005* Through
	2010			2009			2008			2007			April 30, 2006
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	15.37		$	17.53		$	20.39		$	18.44		$	14.98
Net investment income (loss)**		(0.07	)		(0.06	)		(0.10	)		(0.10	)		(0.08	)
Net realized and unrealized gain (loss) on investments		7.24			(2.10	)		(2.76	)		2.05			3.54
Total from investment operations		7.17			(2.16	)		(2.86	)		1.95			3.46
Net asset value at end of period	$	22.54		$	15.37		$	17.53		$	20.39		$	18.44
Share price at end of period***	$	22.55		$	15.37
NET ASSET VALUE, TOTAL RETURN:****		46.65	%		(12.32	)%		(14.03	)%		10.57	%		23.10	%
SHARE PRICE TOTAL RETURN****		46.71	%		(12.37	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	67,626		$	36,896		$	35,055		$	71,369		$	49,799
Ratio to average net assets of:
Expenses, after (Waivers) and/or Recapture		0.63	%		0.63	%		0.63	%		0.63	%		0.67	%†
Expenses, prior to (Waivers) and/or Recapture		0.75	%		0.97	%		0.78	%		0.83	%		0.91	%†
Net investment income (loss), after (Waivers) and/or Recapture		(0.38	)%		(0.42	)%		(0.49	)%		(0.51	)%		(0.53	)%†
Portfolio turnover rate ††		33	%		53	%		64	%		59	%		75	%
Undistributed net investment income included in price of units issued and redeemed**#	$	0.00	^(a)	$	0.02		$	0.05		$	0.00	^(a)		—

* Commencement of Investment Operations.

** Based on average shares outstanding.

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

† Annualized.

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

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

(a) Amount represents less than $0.005.

See Notes to Financial Statements.

Notes to Financial Statements

PowerShares Exchange-Traded Fund Trust

April 30, 2010

Note 1. Organization

Full Name				Short Name
PowerShares Dynamic Banking Portfolio				"Dynamic Banking Portfolio"

PowerShares Dynamic Biotechnology & Genome Portfolio				"Dynamic Biotechnology & Genome Portfolio"

PowerShares Dynamic Building & Construction Portfolio				"Dynamic Building & Construction Portfolio"

PowerShares Dynamic Energy Exploration & Production Portfolio				"Dynamic Energy Exploration & Production Portfolio"

PowerShares Dynamic Food & Beverage Portfolio				"Dynamic Food & Beverage Portfolio"

PowerShares Dynamic Healthcare Services Portfolio				"Dynamic Healthcare Services Portfolio"

PowerShares Dynamic Insurance Portfolio				"Dynamic Insurance Portfolio"

PowerShares Dynamic Leisure and Entertainment Portfolio				"Dynamic Leisure and Entertainment Portfolio"

PowerShares Dynamic Media Portfolio				"Dynamic Media Portfolio"

PowerShares Dynamic Networking Portfolio				"Dynamic Networking Portfolio"

PowerShares Dynamic Oil & Gas Services Portfolio				"Dynamic Oil & Gas Services Portfolio"

PowerShares Dynamic Pharmaceuticals Portfolio				"Dynamic Pharmaceuticals Portfolio"

PowerShares Dynamic Retail Portfolio				"Dynamic Retail Portfolio"

PowerShares Dynamic Semiconductors Portfolio				"Dynamic Semiconductors Portfolio"

PowerShares Dynamic Software Portfolio				"Dynamic Software Portfolio"

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

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

April 30, 2010

Fund				Index
Dynamic Banking Portfolio				Dynamic Banking Intellidex^SM Index

Dynamic Biotechnology & Genome Portfolio				Dynamic Biotechnology & Genome Intellidex^SM Index

Dynamic Building & Construction Portfolio				Dynamic Building & Construction Intellidex^SM Index

Dynamic Energy Exploration & Production Portfolio				Dynamic Energy Exploration & Production Intellidex^SM Index

Dynamic Food & Beverage Portfolio				Dynamic Food & Beverage Intellidex^SM Index

Dynamic Healthcare Services Portfolio				Dynamic Healthcare Services Intellidex^SM Index

Dynamic Insurance Portfolio				Dynamic Insurance Intellidex^SM Index

Dynamic Leisure and Entertainment Portfolio				Dynamic Leisure and Entertainment Intellidex^SM Index

Dynamic Media Portfolio				Dynamic Media Intellidex^SM Index

Dynamic Networking Portfolio				Dynamic Networking Intellidex^SM Index

Dynamic Oil & Gas Services Portfolio				Dynamic Oil Services Intellidex^SM Index

Dynamic Pharmaceuticals Portfolio				Dynamic Pharmaceuticals Intellidex^SM Index

Dynamic Retail Portfolio				Dynamic Retail Intellidex^SM Index

Dynamic Semiconductors Portfolio				Dynamic Semiconductors Intellidex^SM Index

Dynamic Software Portfolio				Dynamic Software Intellidex^SM Index

Note 2. Significant Accounting Policies

A. Security Valuation

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

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

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

April 30, 2010

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

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

April 30, 2010

B. Other Risks

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

C. Federal Income Taxes

D. Investment Income and Investment Transactions

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

April 30, 2010

E. Expenses

F. Dividends and Distributions to Shareholders

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

G. Equalization

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

Note 3. Investment Advisory Agreement and Other Agreements

The Adviser has entered into an Amended and Restated Excess Expense Agreement (the "Excess Expense Agreement") with the Trust pursuant to which the Adviser has agreed to waive fees and/or pay Fund expenses to the extent necessary to prevent the operating expenses of each Fund (excluding interest expense, brokerage commissions and other trading expenses, sub-licensing fees, offering costs, taxes and extraordinary expenses) from exceeding 0.60% of the Fund's average daily net assets per year (the "Expense Cap"), at least until August 31, 2011. Offering costs excluded from the Expense Cap are: (a) initial legal fees pertaining to the Funds' Shares offered for sale; (b) initial Securities and Exchange Commission and state registration fees; and (c) initial fees paid to be listed on an exchange.

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

April 30, 2010

recapture payment will be made by a Fund if it would result in the Fund exceeding its Expense Cap as specified above.

The net amount of fees waived and other expenses assumed by the Adviser and the amount of recapture paid to the Adviser pursuant to the Excess Expense Agreement are collectively referred to as "(Waivers) and/or Recapture". The net amounts of (Waivers) and/or Recapture for the fiscal year ended April 30, 2010 are shown on the Statements of Operations.

The amounts available for potential future recapture by the Adviser under the Excess Expense Agreement and the expiration schedule at April 30, 2010 are as follows:

	Total Potential		Potential Recapture Amounts Expiring
	Recapture Amounts		04/30/11		04/30/12		04/30/13
Dynamic Banking Portfolio	$	280,262	$	74,803	$	81,730	$	123,729
Dynamic Biotechnology & Genome Portfolio		38,784		9,170		18,040		11,574
Dynamic Building & Construction Portfolio		293,101		117,728		104,482		70,891
Dynamic Energy Exploration & Production Portfolio		182,034		33,825		71,755		76,454
Dynamic Food & Beverage Portfolio		237,336		106,057		64,520		66,759
Dynamic Healthcare Services Portfolio		271,498		73,787		98,004		99,707
Dynamic Insurance Portfolio		308,441		94,552		101,777		112,112
Dynamic Leisure and Entertainment Portfolio		315,404		109,307		111,337		94,760
Dynamic Media Portfolio		278,465		99,230		108,094		71,141
Dynamic Networking Portfolio		319,720		118,952		110,045		90,723
Dynamic Oil & Gas Services Portfolio		327		—		—		327
Dynamic Pharmaceuticals Portfolio		179,396		62,631		42,897		73,868
Dynamic Retail Portfolio		320,938		119,462		107,811		93,665
Dynamic Semiconductors Portfolio		239,300		55,112		92,088		92,100
Dynamic Software Portfolio		259,858		92,188		98,470		69,200

The Adviser has entered into a licensing agreement for each Fund with the NYSE Arca (the "Licensor"). Each Underlying Index name trademark is owned by the respective Licensor. These trademarks have been licensed to the Adviser for use with the Funds. 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 these Funds.

The Trust has entered into a sub-licensing agreement under which the Funds are required to pay the sub-licensing fees, which are shown on the Statements of Operations.

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

April 30, 2010

Note 4. Additional Valuation Information

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

	Investment in Securities
	Level 1		Level 2		Level 3		Total
Dynamic Banking Portfolio
Equity Securities	$	25,380,961	$	—	$	—	$	25,380,961
Money Market Fund		82,678		—		—		82,678
Total Investments		25,463,639		—		—		25,463,639
Dynamic Biotechnology & Genome Portfolio
Equity Securities		214,549,000		—		—		214,549,000
Money Market Fund		33,426		—		—		33,426
Total Investments		214,582,426		—		—		214,582,426
Dynamic Building & Construction Portfolio
Equity Securities		50,108,114		—		—		50,108,114
Money Market Fund		54,123		—		—		54,123
Total Investments		50,162,237		—		—		50,162,237

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

April 30, 2010

	Investment in Securities
	Level 1		Level 2		Level 3		Total
Dynamic Energy Exploration & Production Portfolio
Equity Securities	$	59,927,683	$	—	$	—	$	59,927,683
Money Market Fund		62,144		—		—		62,144
Total Investments		59,989,827		—		—		59,989,827
Dynamic Food & Beverage Portfolio
Equity Securities		72,774,691		—		—		72,774,691
Money Market Fund		12,054		—		—		12,054
Total Investments		72,786,745		—		—		72,786,745
Dynamic Healthcare Services Portfolio
Equity Securities		21,522,274		—		—		21,522,274
Money Market Fund		32,189		—		—		32,189
Total Investments		21,554,463		—		—		21,554,463
Dynamic Insurance Portfolio
Equity Securities		18,597,474		—		—		18,597,474
Money Market Fund		42,783		—		—		42,783
Total Investments		18,640,257		—		—		18,640,257
Dynamic Leisure and Entertainment Portfolio
Equity Securities		62,784,648		—		—		62,784,648
Money Market Fund		40,844		—		—		40,844
Total Investments		62,825,492		—		—		62,825,492
Dynamic Media Portfolio
Equity Securities		125,877,126		—		—		125,877,126
Money Market Fund		72,119		—		—		72,119
Total Investments		125,949,245		—		—		125,949,245
Dynamic Networking Portfolio
Equity Securities		47,468,808		—		—		47,468,808
Money Market Fund		19,641		—		—		19,641
Total Investments		47,488,449		—		—		47,488,449
Dynamic Oil & Gas Services Portfolio
Equity Securities		170,502,454		—		—		170,502,454
Money Market Fund		11,625		—		—		11,625
Total Investments		170,514,079		—		—		170,514,079

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

April 30, 2010

	Investment in Securities
	Level 1		Level 2		Level 3		Total
Dynamic Pharmaceuticals Portfolio
Equity Securities	$	57,671,942	$	—	$	—	$	57,671,942
Money Market Fund		16,592		—		—		16,592
Total Investments		57,688,534		—		—		57,688,534
Dynamic Retail Portfolio
Equity Securities		24,274,596		—		—		24,274,596
Money Market Fund		36,352		—		—		36,352
Total Investments		24,310,948		—		—		24,310,948
Dynamic Semiconductors Portfolio
Equity Securities		28,584,372		—		—		28,584,372
Money Market Fund		36,256		—		—		36,256
Total Investments		28,620,628		—		—		28,620,628
Dynamic Software Portfolio
Equity Securities		67,673,076		—		—		67,673,076
Money Market Fund		17,717		—		—		17,717
Total Investments		67,690,793		—		—		67,690,793

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

Tax Character of Distributions to Shareholders Paid During the Fiscal Years Ended April 30, 2010 and 2009:

	2010				2009
	Ordinary Income		Return of Capital		Ordinary Income		Return of Capital
Dynamic Banking Portfolio	$	1,325,518	$	13,214	$	3,373,727	$	—
Dynamic Biotechnology & Genome Portfolio		647,086		217,733		—		—
Dynamic Building & Construction Portfolio		71,961		—		22,670		—
Dynamic Energy Exploration & Production Portfolio		238,490		49,129		345,726		—
Dynamic Food & Beverage Portfolio		1,083,897		—		1,004,394		—
Dynamic Insurance Portfolio		260,945		—		304,900		—
Dynamic Leisure and Entertainment Portfolio		72,405		—		101,048		—
Dynamic Media Portfolio		252,182		22,607		95,850		48,916
Dynamic Oil & Gas Services Portfolio		642,185		258,092		543,711		—
Dynamic Pharmaceuticals Portfolio		992,451		—		949,059		—
Dynamic Retail Portfolio		196,273		—		48,268		—
Dynamic Semiconductors Portfolio		146,532		8,521		141,000		—

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

April 30, 2010

Tax Components of Net Assets at Fiscal Year-End:

	Undistributed Ordinary Income		Temporary Book/Tax Differences			Net Unrealized Appreciation (Depreciation)			Capital Loss Carryforward			Post-October* Deferrals			Shares of Beneficial Interest		Total Net Assets
Dynamic Banking Portfolio	$	—	$	(4,517	)	$	3,468,552		$	(46,303,723	)	$	(2,160,225	)	$	70,403,802	$	25,403,889
Dynamic Biotechnology & Genome Portfolio		—		(6,773	)		22,700,467			(120,436,151	)		(1,880,918	)		314,013,884		214,390,509
Dynamic Building & Construction Portfolio		10,109		(3,290	)		9,733,662			(8,850,482	)		(3,897,277	)		53,121,651		50,114,373
Dynamic Energy Exploration & Production Portfolio		—		(4,673	)		7,360,152			(32,513,391	)		(421,275	)		85,561,781		59,982,594
Dynamic Food & Beverage Portfolio		183,753		(4,061	)		7,807,763			(21,489,865	)		—			86,297,093		72,794,683
Dynamic Healthcare Services Portfolio		—		(3,263	)		2,113,072			(12,548,961	)		(50,509	)		31,999,433		21,509,772
Dynamic Insurance Portfolio		29,873		(3,230	)		1,746,388			(11,117,052	)		(624,569	)		28,560,242		18,591,652
Dynamic Leisure and Entertainment Portfolio		23,484		(2,920	)		6,237,196			(10,260,933	)		(79,387	)		66,876,939		62,794,379
Dynamic Media Portfolio		—		(3,118	)		15,761,117			(16,330,554	)		(14,826	)		126,462,445		125,875,064
Dynamic Networking Portfolio		—		(2,894	)		7,457,309			(5,875,102	)		(6,418	)		45,864,110		47,437,005
Dynamic Oil & Gas Services Portfolio		—		(8,321	)		24,330,355			(132,785,704	)		(25,459,314	)		304,280,720		170,357,736
Dynamic Pharmaceuticals Portfolio		33,935		(4,890	)		(951,044	)		(20,227,411	)		(2,555,362	)		81,366,751		57,661,979
Dynamic Retail Portfolio		22,330		(3,191	)		(857,775	)		(7,089,821	)		(341,575	)		32,542,850		24,272,818
Dynamic Semiconductors Portfolio		—		(3,887	)		2,216,330			(44,531,148	)		(635,065	)		71,527,190		28,573,420
Dynamic Software Portfolio		—		(3,480	)		8,245,893			(14,701,968	)		(462,129	)		74,547,956		67,626,272

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

The following Funds have capital loss carryforward amounts as of April 30, 2010, which expire on April 30 of each year listed below:

	2013		2014		2015		2016		2017		2018		Total*
Dynamic Banking Portfolio	$	—	$	—	$	—	$	1,146,630	$	16,399,927	$	28,757,166	$	46,303,723
Dynamic Biotechnology & Genome Portfolio		—		321,497		19,612,223		15,818,255		34,286,844		50,397,332		120,436,151
Dynamic Building & Construction Portfolio		—		—		2,263,182		742,893		2,843,349		3,001,058		8,850,482
Dynamic Energy Exploration & Production Portfolio		—		—		285,311		3,232,521		7,646,917		21,348,642		32,513,391
Dynamic Food & Beverage Portfolio		—		433,620		1,965,652		1,260,041		7,585,250		10,245,302		21,489,865
Dynamic Healthcare Services Portfolio		—		—		—		1,525,186		5,942,546		5,081,229		12,548,961

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

April 30, 2010

	2013		2014		2015		2016		2017		2018		Total*
Dynamic Insurance Portfolio	$	—	$	—	$	774,301	$	2,181,744	$	4,422,035	$	3,738,972	$	11,117,052
Dynamic Leisure and Entertainment Portfolio		—		751,908		1,611,839		2,111,801		2,895,936		2,889,449		10,260,933
Dynamic Media Portfolio		—		545,973		3,187,134		2,505,039		4,930,761		5,161,647		16,330,554
Dynamic Networking Portfolio		—		383,187		1,939,441		1,064,275		1,975,581		512,618		5,875,102
Dynamic Oil & Gas Services Portfolio		—		—		15,026,862		7,909,602		24,680,663		85,168,577		132,785,704
Dynamic Pharmaceuticals Portfolio		164,751		66,659		644,797		1,727,610		2,128,715		15,494,879		20,227,411
Dynamic Retail Portfolio		—		—		937,070		1,908,967		2,427,604		1,816,180		7,089,821
Dynamic Semiconductors Portfolio		—		271,588		9,158,832		10,196,415		14,001,359		10,902,954		44,531,148
Dynamic Software Portfolio		—		108,427		3,017,278		1,542,190		7,095,351		2,938,722		14,701,968

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

Note 6. Investment Transactions

	Purchases		Sales
Dynamic Banking Portfolio	$	26,046,007	$	27,800,741
Dynamic Biotechnology & Genome Portfolio		156,951,251		144,091,073
Dynamic Building & Construction Portfolio		30,407,090		31,384,193
Dynamic Energy Exploration & Production Portfolio		38,901,790		38,281,521
Dynamic Food & Beverage Portfolio		39,109,585		40,300,898
Dynamic Healthcare Services Portfolio		9,650,910		9,256,462
Dynamic Insurance Portfolio		13,724,289		13,769,516
Dynamic Leisure and Entertainment Portfolio		16,306,004		15,777,826
Dynamic Media Portfolio		31,993,013		27,134,626
Dynamic Networking Portfolio		10,566,042		8,118,349
Dynamic Oil & Gas Services Portfolio		100,297,853		132,845,911
Dynamic Pharmaceuticals Portfolio		23,859,933		24,223,660
Dynamic Retail Portfolio		19,433,197		22,421,196
Dynamic Semiconductors Portfolio		23,112,097		23,467,237
Dynamic Software Portfolio		22,278,505		18,102,315

For the fiscal year ended April 30, 2010, in-kind transactions associated with creations and redemptions were as follows:

	Securities Received		Securities Delivered
Dynamic Banking Portfolio	$	31,049,299	$	81,036,212
Dynamic Biotechnology & Genome Portfolio		115,187,002		124,434,619
Dynamic Building & Construction Portfolio		42,108,879		51,937,794
Dynamic Energy Exploration & Production Portfolio		46,944,617		57,724,669

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

April 30, 2010

	Securities Received		Securities Delivered
Dynamic Food & Beverage Portfolio	$	73,939,596	$	101,529,161
Dynamic Healthcare Services Portfolio		20,103,951		13,751,882
Dynamic Insurance Portfolio		14,295,465		27,886,327
Dynamic Leisure and Entertainment Portfolio		74,150,798		35,190,416
Dynamic Media Portfolio		125,667,800		36,949,450
Dynamic Networking Portfolio		40,050,017		23,475,329
Dynamic Oil & Gas Services Portfolio		115,566,621		123,926,515
Dynamic Pharmaceuticals Portfolio		21,473,264		93,561,646
Dynamic Retail Portfolio		84,763,583		141,047,880
Dynamic Semiconductors Portfolio		36,208,717		53,934,071
Dynamic Software Portfolio		63,131,287		56,879,565

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

At April 30, 2010, the aggregate cost and the net unrealized appreciation (depreciation) of investments for tax purposes were as follows:

	Cost		Net Unrealized Appreciation (Depreciation)			Gross Unrealized Appreciation		Gross Unrealized (Depreciation)
Dynamic Banking Portfolio	$	21,995,087	$	3,468,552		$	3,845,579	$	(377,027	)
Dynamic Biotechnology & Genome Portfolio		191,881,959		22,700,467			28,737,307		(6,036,840	)
Dynamic Building & Construction Portfolio		40,428,575		9,733,662			10,091,865		(358,203	)
Dynamic Energy Exploration & Production Portfolio		52,629,675		7,360,152			9,179,711		(1,819,559	)
Dynamic Food & Beverage Portfolio		64,978,982		7,807,763			8,065,946		(258,183	)
Dynamic Healthcare Services Portfolio		19,441,391		2,113,072			2,338,749		(225,677	)
Dynamic Insurance Portfolio		16,893,869		1,746,388			2,044,429		(298,041	)
Dynamic Leisure and Entertainment Portfolio		56,588,296		6,237,196			6,237,196		—
Dynamic Media Portfolio		110,188,128		15,761,117			16,824,226		(1,063,109	)
Dynamic Networking Portfolio		40,031,140		7,457,309			7,879,233		(421,924	)
Dynamic Oil & Gas Services Portfolio		146,183,724		24,330,355			28,882,733		(4,552,378	)
Dynamic Pharmaceuticals Portfolio		58,639,578		(951,044	)		6,690,237		(7,641,281	)
Dynamic Retail Portfolio		25,168,723		(857,775	)		26,516		(884,291	)
Dynamic Semiconductors Portfolio		26,404,298		2,216,330			3,180,527		(964,197	)
Dynamic Software Portfolio		59,444,900		8,245,893			8,630,640		(384,747	)

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

April 30, 2010

Note 7. Reclassification of Permanent Differences

	Undistributed Net Investment Income (Loss)			Undistributed Net Realized Gain (Loss)			Shares of Beneficial Interest
Dynamic Banking Portfolio	$	24,372		$	6,989,291		$	(7,013,663	)
Dynamic Biotechnology & Genome Portfolio		281,186			(37,300,266	)		37,019,080
Dynamic Building & Construction Portfolio		20,556			(7,116,660	)		7,096,104
Dynamic Energy Exploration & Production Portfolio		(81,190	)		(11,558,922	)		11,640,112
Dynamic Food & Beverage Portfolio		275,996			(11,510,706	)		11,234,710
Dynamic Healthcare Services Portfolio		50,268			(1,627,810	)		1,577,542
Dynamic Insurance Portfolio		(15,651	)		(1,154,666	)		1,170,317
Dynamic Leisure and Entertainment Portfolio		764,293			(5,673,014	)		4,908,721
Dynamic Media Portfolio		541,259			(6,781,061	)		6,239,802
Dynamic Networking Portfolio		113,068			(5,603,802	)		5,490,734
Dynamic Oil & Gas Services Portfolio		261,127			(6,280,393	)		6,019,266
Dynamic Pharmaceuticals Portfolio		161,901			1,322,889			(1,484,790	)
Dynamic Retail Portfolio		(241,079	)		(24,670,186	)		24,911,265
Dynamic Semiconductors Portfolio		35,163			(6,493,420	)		6,458,257
Dynamic Software Portfolio		203,376			(14,413,744	)		14,210,368

Note 8. Trustees' Fees

The Funds compensate each Trustee who is not an employee of the Adviser or its affiliates. The "Interested" Trustees of the Trust do not receive any Trustees' fees.

Note 9. Capital

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust

April 30, 2010

quantity for delivery, not eligible for trading by the Authorized Participant or as a result of other market circumstances.

Note 10. Indemnifications

Report of Independent Registered Public Accounting Firm

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

/s/ PricewaterhouseCoopers LLP
New York, New York
June 28, 2010

Tax Information

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

Each Fund designates the following amounts or, if subsequently determined to be different, the maximum amount allowable for its fiscal year ended April 30, 2010:

Federal Income Tax Information

	Qualified dividend income*			Corporate dividends- received deduction*
Dynamic Banking Portfolio		100	%		100	%
Dynamic Biotechnology & Genome Portfolio		100	%		100	%
Dynamic Building & Construction Portfolio		100	%		100	%
Dynamic Energy Exploration & Production Portfolio		100	%		100	%
Dynamic Food & Beverage Portfolio		100	%		100	%
Dynamic Healthcare Services Portfolio		0	%		0	%
Dynamic Insurance Portfolio		100	%		100	%
Dynamic Leisure and Entertainment Portfolio		100	%		100	%
Dynamic Media Portfolio		100	%		100	%
Dynamic Networking Portfolio		0	%		0	%
Dynamic Oil & Gas Services Portfolio		100	%		100	%
Dynamic Pharmaceuticals Portfolio		100	%		100	%
Dynamic Retail Portfolio		100	%		100	%
Dynamic Semiconductors Portfolio		100	%		100	%
Dynamic Software Portfolio		0	%		0	%

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

Proxy Results

A Special Meeting of Shareholders was held on March 22, 2010 to elect seven individuals to the Board of Trustees of PowerShares Exchange-Traded Fund Trust.

The results of the voting on the above matter were as follows:

Trustees	Votes For		Withheld/ Abstentions*
Ronn R. Bagge		426,624,761		8,241,402
Todd J. Barre		426,876,044		7,990,119
H. Bruce Bond		426,681,223		8,184,940
Kevin M. Carome		425,386,415		9,479,748
Marc M. Kole		426,529,715		8,336,448
Phillip M. Nussbaum		426,531,618		8,334,545
Donald H. Wilson		426,691,769		8,174,394

* Includes Non-Votes.

Trustees and Officers

The Trustees and officers information is current as of April 30, 2010.

Name, Address and Age of
Independent Trustees

Position(s)
Held
with Trust

Term of
Office
and
Length of
Time
Served*

Principal
Occupation(s) During
Past 5 Years

Number of
Portfolios
in Fund
Complex
Overseen by
Independent
Trustees

Other Directorships Held
by Independent Trustees

Ronn R. Bagge
(52)
YQA Capital Management LLC
1755 S. Naperville Rd., Suite 100
Wheaton, IL 60187

Trustee

Since 2003

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

111

None

Todd J. Barre
(52)
c/o Invesco PowerShares
Capital Management LLC
301 West Roosevelt Road
Wheaton, IL 60187

Trustee

Since 2010

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

111

None

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

Trustees and Officers (Continued)

Name, Address and Age of
Independent Trustees

Position(s)
Held
with Trust

Term of
Office
and
Length of
Time
Served*

Principal
Occupation(s) During
Past 5 Years

Number of
Portfolios
in Fund
Complex
Overseen by
Independent
Trustees

Other Directorships Held
by Independent Trustees

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

Trustee

Since 2006

111

None

Philip M. Nussbaum
(48)
c/o Invesco PowerShares Capital Management LLC
301 West Roosevelt Road
Wheaton, IL 60187

Trustee

Since 2003

111

None

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

Trustees and Officers (Continued)

Name, Address and Age of
Independent Trustees

Position(s)
Held
with Trust

Term of
Office
and
Length of
Time
Served*

Principal
Occupation(s) During
Past 5 Years

Number of
Portfolios
in Fund
Complex
Overseen by
Independent
Trustees

Other Directorships Held
by Independent Trustees

Donald H. Wilson
(50)
c/o Invesco PowerShares Capital Management LLC
301 West Roosevelt Road
Wheaton, IL 60187

Trustee

Since 2006

111

None

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

Trustees and Officers (Continued)

Name, Address and Age of
Interested Trustees

Position(s)
Held
with Trust

Term of
Office
and
Length of
Time
Served*

Principal
Occupation(s) During
Past 5 Years

Number of
Portfolios
in Fund
Complex
Overseen by
Interested
Trustees

Other Directorships Held
by Interested Trustees

H. Bruce Bond
(46)
Invesco PowerShares Capital Management LLC
301 West Roosevelt Road
Wheaton, IL 60187

Chairman of the Board and Trustee

Since 2003

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

111

None

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

Trustees and Officers (Continued)

Name, Address and Age of
Interested Trustees

Position(s)
Held
with Trust

Term of
Office
and
Length of
Time
Served*

Principal
Occupation(s) During
Past 5 Years

Number of
Portfolios
in Fund
Complex
Overseen by
Interested
Trustees

Other Directorships Held
by Interested Trustees

Kevin M. Carome
(53)
Invesco Ltd. Two Peachtree Pointe
1555 Peachtree St., N.E.,
Suite 1800
Atlanta, GA 30309

Trustee

Since 2010

111

None

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

Trustees and Officers (Continued)

Name, Address and Age of
Executive Officer

Position(s)
Held
with Trust

Length of
Time
Served*

Principal Occupation(s) During Past 5 Years

Andrew Schlossberg
(35)
Invesco Management Group, Inc.
11 Greenway Plaza
Suite 100
Houston, Texas 77046

President

Since 2009

Bruce T. Duncan
(55)
Invesco PowerShares Capital Management LLC
301 West Roosevelt Road
Wheaton, IL 60187

Treasurer and Secretary

Treasurer since 2006; Secretary since 2008

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

Benjamin Fulton
(48)
Invesco PowerShares Capital Management LLC 301 West Roosevelt Road Wheaton, IL 60187

Vice President

Since 2009

Peter Hubbard
(28)
Invesco PowerShares
Capital Management LLC
301 West Roosevelt Road
Wheaton, IL 60187

Vice President

Since 2009

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

Trustees and Officers (Continued)

Name, Address and Age of
Executive Officer

Position(s)
Held
with Trust

Length of
Time
Served*

Principal Occupation(s) During Past 5 Years

David Warren
(52)
Invesco Trimark Ltd. 5140 Yonge Street Suite 900
Toronto,
Ontario M2N 6X7

Vice President

Since 2009

Todd Spillane
(51)
Invesco PowerShares Capital Management LLC 11 Greenway Plaza
Suite 100
Houston, Texas 77046

Chief Compliance Officer

Since 2010

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

Availability of Additional Information About the Trustees

The Statement of Additional Information includes additional information about the Trustees and is available, without charge, upon request at 800.337.4246.

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

Board Considerations Regarding Continuation of Investment Advisory Agreement

PowerShares Dynamic Market Portfolio

PowerShares Dynamic OTC Portfolio

PowerShares Golden Dragon Halter USX China Portfolio

PowerShares High Yield Equity Dividend Achievers^TM Portfolio

PowerShares WilderHill Clean Energy Portfolio

PowerShares Dynamic Large Cap Growth Portfolio

PowerShares Dynamic Large Cap Value Portfolio

PowerShares Dynamic Mid Cap Growth Portfolio

PowerShares Dynamic Mid Cap Value Portfolio

PowerShares Dynamic Small Cap Growth Portfolio

PowerShares Dynamic Small Cap Value Portfolio

PowerShares Dynamic Biotechnology & Genome Portfolio

PowerShares Dynamic Food & Beverage Portfolio

PowerShares Dynamic Leisure and Entertainment Portfolio

PowerShares Dynamic Media Portfolio

PowerShares Dynamic Networking Portfolio

PowerShares Dynamic Pharmaceuticals Portfolio

PowerShares Dynamic Semiconductors Portfolio

PowerShares Dynamic Software Portfolio

PowerShares Zacks Micro Cap Portfolio

PowerShares Aerospace & Defense Portfolio

PowerShares Dynamic Telecommunications & Wireless Portfolio

PowerShares Value Line Timeliness Select Portfolio

PowerShares Dividend Achievers^TM Portfolio

PowerShares International Dividend Achievers^TM Portfolio

PowerShares Zacks Small Cap Portfolio

PowerShares Dynamic Building and Construction Portfolio

PowerShares Dynamic Energy Exploration and Production Portfolio

PowerShares Dynamic Insurance Portfolio

PowerShares Dynamic Oil and Gas Services Portfolio

PowerShares Dynamic Retail Portfolio

PowerShares Dynamic Utilities Portfolio

PowerShares Lux Nanotech Portfolio

PowerShares FTSE RAFI US 1000 Portfolio

PowerShares FTSE RAFI US 1500 Small-Mid Portfolio

PowerShares Water Resources Portfolio

PowerShares Dynamic Energy Sector Portfolio

PowerShares Dynamic Financial Sector Portfolio

PowerShares Dynamic Healthcare Sector Portfolio

PowerShares Dynamic Industrials Sector Portfolio

PowerShares Dynamic Large Cap Portfolio

PowerShares Dynamic MagniQuant Portfolio

PowerShares Dynamic Mid Cap Portfolio

PowerShares Dynamic Small Cap Portfolio

PowerShares Dynamic Technology Sector Portfolio

PowerShares Buyback Achievers^TM Portfolio

PowerShares Cleantech Portfolio

PowerShares Dynamic Banking Portfolio

PowerShares Dynamic Basic Materials Sector Portfolio

PowerShares Dynamic Consumer Discretionary Sector Portfolio

PowerShares Dynamic Consumer Staples Sector Portfolio

PowerShares Dynamic Healthcare Services Portfolio

PowerShares Financial Preferred Portfolio

PowerShares Global Listed Private Equity Portfolio

PowerShares DWA Technical Leaders Portfolio

PowerShares Value Line Industry Rotation Portfolio

PowerShares WilderHill Progressive Energy Portfolio

Board Considerations Regarding Continuation of Investment Advisory Agreement (Continued)

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

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

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