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			811-21977
PowerShares Exchange-Traded Fund Trust II
(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:	October 31
Date of reporting period:		April 30, 2011

Item 1. Reports to Stockholders.

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

2011 Semi-Annual Report to Shareholders

April 30, 2011

PowerShares DWA Developed Markets Technical Leaders Portfolio (PIZ)

PowerShares DWA Emerging Markets Technical Leaders Portfolio (PIE)

PowerShares Dynamic Developed International Opportunities Portfolio (PFA)

PowerShares Emerging Markets Infrastructure Portfolio (PXR)

PowerShares FTSE RAFI Asia Pacific ex-Japan Portfolio (PAF)

PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio (PXF)

PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio (PDN)

PowerShares FTSE RAFI Emerging Markets Portfolio (PXH)

PowerShares Global Agriculture Portfolio (PAGG)

PowerShares Global Clean Energy Portfolio (PBD)

PowerShares Global Coal Portfolio (PKOL)

PowerShares Global Gold and Precious Metals Portfolio (PSAU)

PowerShares Global Nuclear Energy Portfolio (PKN)

PowerShares Global Steel Portfolio (PSTL)

PowerShares Global Water Portfolio (PIO)

PowerShares Global Wind Energy Portfolio (PWND)

PowerShares MENA Frontier Countries Portfolio (PMNA)

Table of Contents

Frequency Distribution of Discounts & Premiums	2
Fees and Expenses	4
International Portfolios
Schedules of Investments
PowerShares DWA Developed Markets Technical Leaders Portfolio (PIZ)	7
PowerShares DWA Emerging Markets Technical Leaders Portfolio (PIE)	9
PowerShares Dynamic Developed International Opportunities Portfolio (PFA)	12
PowerShares Emerging Markets Infrastructure Portfolio (PXR)	16
PowerShares FTSE RAFI Asia Pacific ex-Japan Portfolio (PAF)	18
PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio (PXF)	21
PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio (PDN)	33
PowerShares FTSE RAFI Emerging Markets Portfolio (PXH)	50
PowerShares Global Agriculture Portfolio (PAGG)	55
PowerShares Global Clean Energy Portfolio (PBD)	57
PowerShares Global Coal Portfolio (PKOL)	60
PowerShares Global Gold and Precious Metals Portfolio (PSAU)	61
PowerShares Global Nuclear Energy Portfolio (PKN)	63
PowerShares Global Steel Portfolio (PSTL)	65
PowerShares Global Water Portfolio (PIO)	67
PowerShares Global Wind Energy Portfolio (PWND)	69
PowerShares MENA Frontier Countries Portfolio (PMNA)	71
Statements of Assets and Liabilities	74
Statements of Operations	78
Statements of Changes in Net Assets	82
Financial Highlights	88
Notes to Financial Statements	98
Board Considerations Regarding Continuation of Investment Advisory Agreement	112

Frequency Distribution of Discounts & Premiums

Since Inception through April 30, 2011

					Closing Price Above NAV (bps)
Ticker	Fund Name	Inception	Days		0-24		25-49		50-99		100-149		150-199		200+
PIZ	PowerShares DWA Developed Markets Technical Leaders Portfolio	12/28/07		841		114		111		145		69		17		35
PIE	PowerShares DWA Emerging Markets Technical Leaders Portfolio	12/28/07		841		78		78		187		84		35		43
PFA	PowerShares Dynamic Developed International Opportunities Portfolio	6/13/07		979		121		110		143		82		34		32
PXR	PowerShares Emerging Markets Infrastructure Portfolio	10/16/08		639		78		84		148		59		41		53
PAF	PowerShares FTSE RAFI Asia Pacific ex-Japan Portfolio	6/25/07		971		99		110		181		120		52		52
PXF	PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio	6/25/07		971		112		124		250		131		49		45
PDN	PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio	9/27/07		905		60		83		148		157		104		90
PXH	PowerShares FTSE RAFI Emerging Markets Portfolio	9/27/07		905		95		112		279		140		34		25
PAGG	PowerShares Global Agriculture Portfolio	9/18/08		658		83		91		165		59		31		23
PBD	PowerShares Global Clean Energy Portfolio	6/13/07		979		105		123		204		94		54		26
PKOL	PowerShares Global Coal Portfolio	9/18/08		658		94		92		123		33		23		36
PSAU	PowerShares Global Gold and Precious Metals Portfolio	9/18/08		658		101		102		138		59		25		39
PKN	PowerShares Global Nuclear Energy Portfolio	4/3/08		776		124		137		123		52		11		9
PSTL	PowerShares Global Steel Portfolio	9/18/08		658		82		89		128		63		34		18
PIO	PowerShares Global Water Portfolio	6/13/07		979		146		181		218		69		22		15
PWND	PowerShares Global Wind Energy Portfolio	7/1/08		714		92		99		115		59		23		42
PMNA	PowerShares MENA Frontier Countries Portfolio	7/9/08		709		57		61		125		86		40		75

2

	Closing Below NAV (bps)
Ticker	-0-24		-25-49		-50-99		-100-149		-150-199		-200+
PIZ		96		70		104		39		23		18
PIE		74		59		99		62		15		27
PFA		139		100		122		49		24		23
PXR		55		51		51		12		1		6
PAF		69		78		102		62		28		18
PXF		73		47		76		38		17		9
PDN		62		38		66		45		27		25
PXH		76		55		56		20		8		5
PAGG		74		50		64		13		4		1
PBD		122		103		97		29		12		10
PKOL		90		71		62		25		4		5
PSAU		67		51		39		20		7		10
PKN		136		88		61		20		4		11
PSTL		94		61		71		13		1		4
PIO		124		71		75		26		10		22
PWND		97		69		69		34		9		6
PMNA		54		52		72		41		20		26

3

Fees and Expenses

As a shareholder of a Fund of the PowerShares Exchange-Traded Fund Trust II, you incur a unitary management fee. The expense examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other funds.

The example is based on an investment of $1,000 invested at the beginning of the period and held through the six-month period ended April 30, 2011.

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 Period" to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line in the following table provides information about hypothetical account values and hypothetical expenses based on each Fund's actual expense ratio and an assumed annualized rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only, and do not reflect any transactional costs such as sales charges and brokerage commissions. Therefore the second line in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

	Beginning Account Value November 1, 2010		Ending Account Value April 30, 2011		Annualized Expense Ratio based on the Six-Month Period			Expenses Paid During the Six-Month Period (1)
PowerShares DWA Developed Markets Technical Leaders Portfolio Actual	$	1,000.00	$	1,136.69		0.80	%	$	4.24
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.83		0.80	%	$	4.01
PowerShares DWA Emerging Markets Technical Leaders Portfolio Actual	$	1,000.00	$	1,081.45		0.90	%	$	4.64
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.33		0.90	%	$	4.51
PowerShares Dynamic Developed International Opportunities Portfolio Actual	$	1,000.00	$	1,178.91		0.75	%	$	4.05
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.08		0.75	%	$	3.76

4

Fees and Expenses (Continued)

	Beginning Account Value November 1, 2010		Ending Account Value April 30, 2011		Annualized Expense Ratio based on the Six-Month Period			Expenses Paid During the Six-Month Period (1)
PowerShares Emerging Markets Infrastructure Portfolio Actual	$	1,000.00	$	1,128.83		0.75	%	$	3.96
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.08		0.75	%	$	3.76
PowerShares FTSE RAFI Asia Pacific ex-Japan Portfolio Actual	$	1,000.00	$	1,195.01		0.80	%	$	4.35
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.83		0.80	%	$	4.01
PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio Actual	$	1,000.00	$	1,135.56		0.75	%	$	3.97
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.08		0.75	%	$	3.76
PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio Actual	$	1,000.00	$	1,148.45		0.75	%	$	4.00
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.08		0.75	%	$	3.76
PowerShares FTSE RAFI Emerging Markets Portfolio Actual	$	1,000.00	$	1,097.44		0.85	%	$	4.42
Hypothetical (5% return before expenses)	$	1,000.00	$	1,020.58		0.85	%	$	4.26
PowerShares Global Agriculture Portfolio Actual	$	1,000.00	$	1,100.74		0.75	%	$	3.91
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.08		0.75	%	$	3.76
PowerShares Global Clean Energy Portfolio Actual	$	1,000.00	$	1,110.48		0.75	%	$	3.92
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.08		0.75	%	$	3.76
PowerShares Global Coal Portfolio Actual	$	1,000.00	$	1,175.10		0.75	%	$	4.04
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.08		0.75	%	$	3.76
PowerShares Global Gold & Precious Metals Portfolio Actual	$	1,000.00	$	1,121.66		0.75	%	$	3.95
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.08		0.75	%	$	3.76
PowerShares Global Nuclear Energy Portfolio Actual	$	1,000.00	$	1,070.91		0.75	%	$	3.85
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.08		0.75	%	$	3.76
PowerShares Global Steel Portfolio Actual	$	1,000.00	$	1,117.81		0.75	%	$	3.94
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.08		0.75	%	$	3.76
PowerShares Global Water Portfolio Actual	$	1,000.00	$	1,143.57		0.75	%	$	3.99
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.08		0.75	%	$	3.76

5

Fees and Expenses (Continued)

	Beginning Account Value November 1, 2010		Ending Account Value April 30, 2011		Annualized Expense Ratio based on the Six-Month Period			Expenses Paid During the Six-Month Period (1)
PowerShares Global Wind Energy Portfolio Actual	$	1,000.00	$	1,105.94		0.75	%	$	3.92
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.08		0.75	%	$	3.76
PowerShares MENA Frontier Countries Portfolio
Actual	$	1,000.00	$	949.21		0.70	%	$	3.38
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.32		0.70	%	$	3.51

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

6

Portfolio Composition

PowerShares DWA Developed Markets Technical Leaders Portfolio

Sector Breakdown (% of the Fund's Net Assets) as of April 30, 2011 (Unaudited)

Industrials	21.4
Materials	19.4
Consumer Discretionary	14.3
Energy	13.0
Financials	10.5
Information Technology	7.1
Consumer Staples	5.8
Telecommunication Services	3.2
Health Care	2.8
Utilities	2.3
Other assets less liabilities	0.2

Schedule of Investments

PowerShares DWA Developed Markets Technical Leaders Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—99.8%
		Australia—11.4%
	379,230	Alumina Ltd.	$	937,924
	69,022	Caltex Australia Ltd.		1,071,831
	392,101	Challenger Financial Services Group Ltd.		2,068,242
	91,180	Coca-Cola Amatil Ltd.		1,191,408
	20,828	Cochlear Ltd.		1,835,303
	279,794	Fortescue Metals Group Ltd.		1,883,085
	1,917,861	Goodman Group REIT		1,490,157
	235,487	Incitec Pivot Ltd.		968,972
	24,534	Newcrest Mining Ltd.		1,112,883
	138,387	Oil Search Ltd.		1,067,679
	34,930	Orica Ltd.		1,016,038
	89,330	Origin Energy Ltd.		1,598,349
				16,241,871
		Austria—1.0%
	1,356	Bank of Austria 'Escrow'*		—
	28,309	Erste Group Bank AG		1,433,014
				1,433,014
		Belgium—0.8%
	20,368	Umicore SA		1,170,191
		Bermuda—1.1%
	43,917	Seadrill Ltd.		1,558,330
		British Virgin Islands—0.8%
	115,968	Renesola Ltd. ADR*		1,064,586
		Canada—14.0%
	11,214	Agrium, Inc.		1,013,556
	17,969	ATCO Ltd., Class I		1,103,119

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	15,715	Canadian National Railway Co.	$	1,215,497
	70,756	CGI Group, Inc., Class A*		1,543,605
	16,800	Enbridge, Inc.		1,088,897
	18,411	Goldcorp, Inc.		1,027,886
	19,327	Imperial Oil Ltd.		1,018,443
	22,590	Metro, Inc., Class A		1,102,300
	13,820	National Bank of Canada		1,141,022
	26,455	Onex Corp.		989,780
	20,402	Saputo, Inc.		968,442
	151,566	Sherritt International Corp.		1,277,892
	82,038	Silver Wheaton Corp.		3,328,727
	57,178	Sino-Forest Corp.*		1,416,720
	26,854	SNC-Lavalin Group, Inc.		1,619,985
				19,855,871
		China—1.6%
	1,543,000	Yangzijiang Shipbuilding Holdings Ltd.		2,284,991
		Finland—1.5%
	31,024	Fortum Oyj		1,070,593
	31,801	Sampo Oyj, Class A		1,071,929
				2,142,522
		France—5.5%
	167,900	Alcatel-Lucent*		1,084,317
	6,531	Christian Dior SA		1,049,846
	13,473	Iliad SA		1,734,806
	6,452	PPR		1,155,842
	11,976	Technip SA		1,353,180
	23,329	Valeo SA*		1,488,096
				7,866,087

See Notes to Financial Statements.

7

Schedule of Investments (Continued)

PowerShares DWA Developed Markets Technical Leaders Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
		Germany—7.1%
	11,060	BASF SE*	$	1,138,758
	15,016	Continental AG*		1,509,763
	14,010	Fresenius Medical Care AG & Co. KGaA		1,102,865
	11,488	Hochtief AG		1,089,597
	305,129	Infineon Technologies AG		3,469,412
	18,915	Lanxess AG		1,737,898
				10,048,293
		Hong Kong—6.8%
	534,000	Citic Pacific Ltd.		1,594,933
	498,000	CNOOC Ltd.		1,228,395
	198,000	Li & Fung Ltd.*		1,011,973
	515,000	Lifestyle International Holdings Ltd.		1,471,883
	830,000	Noble Group Ltd.		1,514,338
	213,500	Orient Overseas International Ltd.		1,629,918
	472,000	Tingyi (Cayman Islands) Holding Corp.		1,251,764
				9,703,204
		Italy—0.8%
	20,845	Saipem SpA		1,185,380
		Japan—4.4%
	6,097	FANUC Corp.		1,010,656
	39,996	JGC Corp.		985,359
	32,800	Komatsu Ltd.		1,148,041
	13,596	ORIX Corp.		1,325,417
	40,700	SoftBank Corp.		1,700,431
				6,169,904
		Norway—3.0%
	104,953	DnB NOR ASA		1,708,801
	95,703	Petroleum Geo-Services ASA*		1,513,441
	35,807	Schibsted ASA		1,077,822
				4,300,064
		Philippines—0.7%
	17,975	Philippine Long Distance Telephone Co.		1,043,818
		Portugal—0.8%
	65,565	Jeronimo Martins SGPS SA		1,077,776
		Singapore—1.9%
	118,800	Keppel Corp. Ltd.		1,156,654
	324,000	SembCorp Marine Ltd.		1,503,031
				2,659,685
		Spain—0.8%
	17,913	Red Electrica Corporacion SA		1,144,882
		Switzerland—11.0%
	62,382	ABB Ltd.*		1,715,334
	1,745	Banque Cantonale Vaudoise		1,067,957
	1,747	Barry Callebaut AG*		1,662,612

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	18,973	Compagnie Financiere Richemont SA	$	1,221,246
	5,771	Geberit AG		1,345,647
	9,778	Schindler Holding AG		1,253,142
	601	SGS SA		1,188,228
	407	Sika AG		1,034,782
	6,675	Sulzer AG		1,198,264
	2,518	Swatch Group AG		1,233,703
	6,611	Swiss Life Holding AG*		1,201,239
	4,198	Syngenta AG*		1,479,657
				15,601,811
		United Kingdom—21.6%
	87,154	AMEC PLC		1,744,423
	66,240	Antofagasta PLC		1,510,331
	284,118	ARM Holdings PLC		2,940,518
	103,318	Burberry Group PLC		2,231,665
	247,094	Carphone Warehouse Group PLC*		1,639,290
	118,269	Compass Group PLC		1,153,025
	152,388	Cookson Group PLC*		1,818,627
	79,232	IMI PLC		1,443,134
	1,010,449	ITV PLC*		1,281,731
	241,115	Kingfisher PLC		1,103,951
	670,910	Legal & General Group PLC		1,374,187
	89,650	Petrofac Ltd.		2,257,930
	17,495	Rio Tinto PLC		1,272,283
	27,363	SABMiller PLC		1,019,829
	32,599	Shire PLC		1,005,911
	80,227	Travis Perkins PLC		1,438,508
	76,602	Tullow Oil PLC		1,830,921
	68,521	Weir Group PLC (The)		2,198,933
	52,596	Xstrata PLC		1,334,775
				30,599,972
		United States—3.2%
	30,842	Domtar Corp.		2,858,130
	41,330	Royal Caribbean Cruises Ltd.*		1,641,667
				4,499,797
		Total Investments (Cost $121,727,355)—99.8%		141,652,049
		Other assets less liabilities—0.2%		222,305
		Net Assets—100.0%	$	141,874,354

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.

8

Portfolio Composition

PowerShares DWA Emerging Markets Technical Leaders Portfolio

Sector Breakdown (% of the Fund's Net Assets) as of April 30, 2011 (Unaudited)

Materials	20.9
Consumer Discretionary	17.5
Industrials	16.7
Financials	15.2
Energy	9.5
Consumer Staples	9.2
Information Technology	3.8
Utilities	3.2
Health Care	2.4
Telecommunication Services	1.6
Money Market Fund	0.1
Liabilities in excess of other assets	(0.1	)

Schedule of Investments

PowerShares DWA Emerging Markets Technical Leaders Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Brazil—1.8%
	35,756	Cia de Saneamento Basico do Estado de Sao Paulo ADR	$	2,092,441
	133,535	Cia Paranaense de Energia ADR		3,681,560
				5,774,001
		Chile—0.5%
	63,065	Lan Airlines SA ADR		1,762,036
		China—9.5%
	4,864,000	China National Building Material Co. Ltd., H-Shares		10,244,482
	1,071,000	China Oilfield Services Ltd., H-Shares		2,117,843
	119,905	Focus Media Holding Ltd. ADR*		4,214,661
	1,560,330	Jiangxi Copper Co. Ltd., H-Shares		5,293,102
	76,343	NetEase.com, Inc. ADR*		3,762,183
	29,986	SINA Corp.*		4,040,613
	1,608,000	Zijin Mining Group Co. Ltd., H-Shares		1,264,854
				30,937,738
		France—3.1%
	319,684	Vivendi SA		10,047,691
		Hong Kong—0.5%
	194,480	Hengan International Group Co. Ltd.		1,517,263
		India—0.8%
	8,047	HDFC Bank Ltd. ADR		1,384,889
	26,344	ICICI Bank Ltd. ADR		1,327,737
				2,712,626

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
		Indonesia—12.7%
	800,309	PT Astra International Tbk	$	5,247,238
	73,783,500	PT Bakrie Telecom Tbk*		3,316,984
	2,732,830	PT Bank Central Asia Tbk		2,361,390
	16,657,500	PT Bank CIMB Niaga Tbk*		3,442,757
	13,610,000	PT Bank Negara Indonesia (Persero) Tbk		6,436,303
	6,184,500	PT Bumi Resources Tbk		2,473,367
	27,979,000	PT Global MediaCom Tbk		2,450,286
	3,710,000	PT Indofood Sukses Makmur Tbk		2,404,309
	4,590,750	PT International Nickel Indonesia Tbk		2,666,859
	1,401,080	PT Tambang Batubara Bukit Asam Tbk		3,648,305
	2,544,720	PT United Tractors Tbk		6,908,540
				41,356,338
		Luxembourg—1.1%
	102,148	Ternium SA ADR		3,434,216
		Malaysia—19.8%
	2,008,800	Affin Holdings Bhd		2,373,667
	2,854,200	AirAsia Bhd*		2,765,548
	1,357,100	AMMB Holdings Bhd		2,923,126
	54,100	Batu Kawan Bhd		279,815
	1,088,200	Boustead Holdings Bhd		2,127,170
	4,108,600	Dialog Group Bhd		3,453,887
	3,554,500	DRB-Hicom Bhd		2,652,075
	1,437,000	Gamuda Bhd		1,814,443
	701,300	Genting Bhd		2,746,482
	1,705,200	Hap Seng Consolidated Bhd		3,339,014
	692,100	Hong Leong Financial Group Bhd		2,397,348
	910,400	IJM Corp. Bhd		1,905,631
	3,998,100	Kencana Petroleum Bhd		3,549,967

See Notes to Financial Statements.

9

Schedule of Investments (Continued)

PowerShares DWA Emerging Markets Technical Leaders Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	394,500	Kuala Lumpur Kepong Bhd	$	2,812,910
	1,084,900	Malaysia Airports Holdings Bhd		2,263,566
	5,004,000	Malaysian Resources Corp. Bhd		3,598,420
	2,535,200	Media Prima Bhd		2,251,039
	2,439,500	Multi-Purpose Holdings Bhd		2,586,101
	673,879	Parkson Holdings Bhd		1,301,346
	412,100	Petronas Dagangan Bhd		2,153,716
	939,800	RHB Capital Bhd		2,811,151
	3,636,200	SapuraCrest Petroleum Bhd		4,566,733
	1,072,100	SP Setia Bhd		1,512,957
	6,449,900	TIME dotCom Bhd*		1,970,682
	683,100	Top Glove Corp. Bhd		1,196,924
	431,300	Tradewinds Plantation Bhd		499,446
	2,407,500	WCT Bhd		2,470,898
				64,324,062
		Mexico—9.7%
	332,900	Coca-Cola Femsa SAB de CV, Series L		2,651,768
	3,640,500	Controladora Comercial Mexicana SAB de CV*		6,329,520
	447,100	Fomento Economico Mexicano SAB de CV		2,806,588
	526,700	Grupo Continental SAB		1,968,502
	639,300	Grupo Financiero Banorte SAB de CV, Class O		3,187,630
	1,153,000	Grupo Mexico SAB de CV, Series B		3,985,309
	107,980	Industrias Penoles SAB de CV		4,194,853
	1,046,400	Mexichem SAB de CV		3,969,823
	574,100	Promotora y Operadora de Infraestructura SAB de CV*		2,489,161
				31,583,154
		Peru—2.7%
	23,845	Credicorp Ltd.		2,301,519
	1,298,781	Grana y Montero SA		2,369,382
	103,515	Sociedad Minera Cerro Verde SA		4,088,843
				8,759,744
		Philippines—1.0%
	600	JG Summit Holdings, Inc.		355
	2,480	Jollibee Foods Corp.		5,474
	9,646,900	Petron Corp.		3,118,736
				3,124,565
		Russia—2.0%
	223,682	Mechel ADR		6,390,595
		South Africa—6.6%
	165,219	Aspen Pharmacare Holdings Ltd.*		2,031,628
	119,779	Exxaro Resources Ltd.		3,225,770
	198,872	JSE Ltd.		1,981,414
	53,485	Kumba Iron Ore Ltd.		3,897,539
	821,739	Merafe Resources Ltd.		185,874

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	82,356	Naspers Ltd., Class N	$	4,938,459
	137,421	Palabora Mining Co. Ltd.		3,066,688
	139,493	Shoprite Holdings Ltd.		2,191,755
				21,519,127
		South Korea—17.4%
	14,984	CJ O Shopping Co. Ltd.		3,208,910
	92,700	Daewoo Shipbuilding & Marine Engineering Co. Ltd.		3,966,122
	74,642	Dongbu Insurance Co. Ltd.		3,552,225
	7,987	Hyundai Heavy Industries Co. Ltd.		3,987,351
	8,020	Hyundai Mipo Dockyard		1,421,920
	21,377	Hyundai Motor Co.		4,917,119
	33,354	Hyundai Steel Co.		4,232,860
	29,460	KB Financial Group, Inc. ADR		1,569,923
	141,748	Kia Motors Corp.		10,171,624
	35,244	Komipharm International Co. Ltd.*		1,743,043
	24,591	OCI Materials Co. Ltd.		3,056,522
	28,499	Samsung Engineering Co. Ltd.		6,315,973
	79,660	SFA Engineering Corp.		4,556,672
	24,545	S-Oil Corp.		3,653,177
				56,353,441
		Thailand—5.7%
	6,190,900	Asian Property Development PCL		1,306,622
	1,557,755	Bangkok Dusit Medical Services PCL		2,726,724
	149,625	Banpu PCL		3,739,372
	930,600	Big C Supercenter PCL		2,696,713
	4,242,800	Charoen Pokphand Foods PCL		4,193,052
	283,200	PTT Exploration & Production PCL		1,755,176
	520,795	Siam Commercial Bank PCL		2,023,860
	13,600	Thai Plastic & Chemical PCL		12,643
				18,454,162
		Turkey—3.8%
	606,210	Aygaz AS		4,509,214
	38,842	Fenerbahce Sportif Hizmetler Sanayi ve Ticaret AS		2,633,529
	450,957	Haci Omer Sabanci Holding AS		2,416,345
	265,723	Koc Holding AS		1,430,810
	261,417	Turkiye Garanti Bankasi AS		1,355,999
				12,345,897
		United Kingdom—1.3%
	40,037	Anglo American PLC		2,083,862
	54,760	BHP Billiton PLC		2,305,803
				4,389,665
		Total Common Stocks and Other Equity Interests (Cost $282,382,939)		324,786,321

See Notes to Financial Statements.

10

Schedule of Investments (Continued)

PowerShares DWA Emerging Markets Technical Leaders Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Money Market Fund—0.1%
	216,692	Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $216,692)	$	216,692
		Total Investments (Cost $282,599,631)—100.1%		325,003,013
		Liabilities in excess of other assets—(0.1)%		(370,389	)
		Net Assets—100.0%	$	324,632,624

Investment Abbreviations:

ADR—American Depositary Receipt

Notes to Schedule of Investments:

*  Non-income producing security.

See Notes to Financial Statements.

11

Portfolio Composition

PowerShares Dynamic Developed International Opportunities Portfolio

Sector Breakdown (% of the Fund's Net Assets) as of April 30, 2011 (Unaudited)

Financials	24.7
Consumer Discretionary	22.2
Materials	17.2
Industrials	14.1
Information Technology	6.7
Energy	5.0
Telecommunication Services	3.9
Health Care	2.8
Utilities	2.1
Consumer Staples	1.2
Other assets less liabilities	0.1

Schedule of Investments

PowerShares Dynamic Developed International Opportunities Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—99.0%
		Australia—0.4%
	74,913	OZ Minerals Ltd.	$	118,053
		Austria—3.1%
	1,244	Andritz AG		128,657
	2,396	Erste Group Bank AG		121,287
	6,733	EVN AG		129,359
	2,812	OMV AG		128,452
	2,119	Raiffeisen International Bank Holding AG		117,026
	3,882	Strabag SE		130,564
	2,093	Vienna Insurance Group AG Wiener Versicherung Gruppe		125,138
	2,608	Voestalpine AG		128,555
				1,009,038
		Belgium—0.4%
	3,095	KBC Groep NV*		126,365
		Bermuda—0.8%
	20,230	Catlin Group Ltd.		133,452
	12,534	Lancashire Holdings Ltd.		134,844
				268,296
		Canada—1.9%
	2,032	ATCO Ltd., Class I		124,745
	3,493	Encana Corp.		117,029
	5,096	Sino-Forest Corp.*		126,265
	2,476	Telus Corp.		130,108
	1,403	Toronto-Dominion Bank (The)		121,130
				619,277
		China—2.7%
	221,000	Bank of China Ltd., H-Shares		122,057
	114,000	Bank of Communications Co. Ltd., H-Shares		120,786

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	120,000	China Petroleum & Chemical Corp. (Sinopec), H-Shares	$	120,809
	76,000	Dongfeng Motor Group Co. Ltd., H-Shares		118,585
	84,000	PetroChina Co. Ltd., H-Shares		120,686
	150,500	Soho China Ltd.		130,009
	84,000	Yangzijiang Shipbuilding Holdings Ltd.		124,394
				857,326
		Cyprus—0.4%
	19,780	Songa Offshore SE*		121,193
		Denmark—1.3%
	14	A P Moller—Maersk A/S, Class B		142,043
	5,282	H. Lundbeck A/S		127,042
	751	Topdanmark A/S*		138,198
				407,283
		Finland—1.6%
	8,551	Pohjola Bank PLC, Class A		127,116
	10,616	Stora Enso Oyj, Class R		128,125
	5,943	UPM-Kymmene Oyj		122,028
	3,209	Wartsila Oyj		126,354
				503,623
		France—7.7%
	1,403	Arkema SA		146,433
	5,859	AXA SA		131,690
	1,609	BNP Paribas		127,543
	870	Christian Dior SA		139,851
	5,641	CNP Assurances		129,678
	3,345	Faurecia*		138,210
	20,864	Natixis*		120,163
	2,482	Nexity		135,140

See Notes to Financial Statements.

12

Schedule of Investments (Continued)

PowerShares Dynamic Developed International Opportunities Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	1,525	Plastic Omnium SA	$	146,383
	3,094	PSA Peugeot Citroen SA*		140,737
	2,274	Renault SA*		138,794
	4,185	Rhodia SA		195,424
	1,755	Sanofi		139,039
	4,496	SCOR SE		137,574
	1,792	Societe Generale		120,063
	1,997	Total SA		128,050
	2,093	Valeo SA*		133,507
	4,368	Vivendi SA		137,287
				2,485,566
		Germany—5.9%
	4,259	Aareal Bank AG*		129,343
	880	Allianz SE		138,782
	1,456	BASF SE*		149,912
	1,486	Bayerische Motoren Werke (BMW) AG		140,369
	14,891	Commerzbank AG*		94,997
	1,427	Continental AG*		143,476
	1,759	Daimler AG		136,198
	2,214	Hannover Rueckversicherung AG		134,114
	11,857	Infineon Technologies AG		134,818
	1,637	Lanxess AG		150,406
	2,911	Leoni AG*		160,248
	788	Muenchener Rueckversicherungs - Gesellschaft AG		130,294
	10,248	TUI AG*		130,875
	819	Volkswagen AG*		146,294
				1,920,126
		Greece—0.3%
	5,187	OPAP SA		109,814
		Hong Kong—2.7%
	51,000	Cathay Pacific Airways Ltd.		127,244
	10,000	Guoco Group Ltd.		125,715
	5,000	Jardine Strategic Holdings Ltd.		142,000
	69,000	New World Development Co. Ltd.		120,987
	11,500	Orient Overseas International Ltd.		87,794
	286,000	PCCW Ltd.		113,404
	34,000	Wheelock & Co. Ltd.		140,069
				857,213
		Ireland—0.0%
	842,107	Anglo Irish Bank Corp. Ltd.*		—
		Israel—0.8%
	484	Delek Group Ltd.		129,009
	59,022	Israel Discount Bank Ltd., Class A*		124,736
				253,745

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
		Italy—3.4%
	4,004	Danieli SpA	$	127,717
	12,526	De'Longhi SpA		160,376
	20,053	Enel SpA		143,220
	4,935	Eni SpA		132,154
	13,131	Fiat SpA		140,362
	11,838	Mediobanca SpA		135,059
	23,446	Mediolanum SpA		138,025
	78,706	Telecom Italia SpA		118,753
				1,095,666
		Japan—41.4%
	13,000	ADEKA Corp.		128,013
	21,000	Aichi Steel Corp.		126,041
	3,700	Aisin Seiki Co. Ltd.		129,915
	13,100	Alps Electric Co. Ltd.		128,837
	8,100	Aoyama Trading Co. Ltd.		133,270
	55,000	Aozora Bank Ltd.		118,622
	10,000	Asahi Glass Co. Ltd.		126,448
	18,000	Asahi Kasei Corp.		122,899
	8,200	Brother Industries Ltd.		124,910
	33,000	Calsonic Kansei Corp.		133,399
	4,500	Canon Electronics, Inc.		107,592
	16	Central Japan Railway Co.		120,483
	7,500	Century Tokyo Leasing Corp.		128,297
	22,000	Chiba Bank Ltd. (The)		129,332
	20,000	Daicel Chemical Industries Ltd.		128,174
	9,000	Daihatsu Motor Co. Ltd.		144,306
	7,100	Daiichikosho Co. Ltd.		123,817
	13,000	Dainippon Screen Manufacturing Co. Ltd.		119,362
	39,000	Daishi Bank Ltd. (The)		122,085
	3,900	Denso Corp.		130,064
	56,000	DIC Corp.		133,202
	24,000	Ebara Corp.		134,582
	9,700	Elpida Memory, Inc.*		143,695
	4,300	EXEDY Corp.		136,462
	5,100	FCC Co. Ltd.		119,549
	39,000	Fuji Electric Co. Ltd.		121,124
	19,000	Fuji Heavy Industries Ltd.		140,966
	3,900	FUJIFILM Holdings Corp.		120,643
	23,000	Gunma Bank Ltd. (The)		123,872
	7,700	Heiwa Corp.		118,148
	26,000	Hino Motors Ltd.		122,085
	25,000	Hitachi Ltd.		134,952
	3,300	Honda Motor Co. Ltd.		129,739
	4,300	HORIBA Ltd.		128,830
	1,100	Idemitsu Kosan Co. Ltd.		128,654
	51,000	IHI Corp.		128,223
	31,000	Isuzu Motors Ltd.		132,191
	11,400	ITOCHU Corp.		117,878
	28,000	JFE Shoji Holdings, Inc.		122,504

See Notes to Financial Statements.

13

Schedule of Investments (Continued)

PowerShares Dynamic Developed International Opportunities Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	39,000	Juroku Bank Ltd. (The)	$	120,163
	19,000	Kagoshima Bank Ltd. (The)		126,916
	11,000	Kaken Pharmaceutical Co. Ltd.		141,940
	18,000	Kaneka Corp.		131,107
	16,000	Kayaba Industry Co. Ltd.		132,315
	19	KDDI Corp.		125,980
	6,800	Keihin Corp.		128,474
	9,000	Koito Manufacturing Co. Ltd.		141,089
	6,500	Konami Corp.		127,853
	4,200	K's Holdings Corp.		130,131
	9,800	Kuraray Co. Ltd.		142,157
	7,000	KYORIN Holdings, Inc.		124,661
	4,500	Lintec Corp.		130,885
	17,008	Marubeni Corp.		122,833
	21,000	Mitsubishi Chemical Holdings Corp.		141,570
	11,000	Mitsubishi Electric Corp.		120,791
	6,600	Mitsui & Co. Ltd.		116,480
	49,000	Mitsui Engineering & Shipbuilding Co. Ltd.		120,779
	36,000	Mitsui Mining & Smelting Co. Ltd.		127,779
	10,980	Mochida Pharmaceutical Co. Ltd.		121,654
	24,000	Nachi-Fujikoshi Corp.		133,103
	10,000	NGK Spark Plug Co. Ltd.		138,649
	13,000	NHK Spring Co. Ltd.		122,566
	9,000	Nippon Electric Glass Co. Ltd.		135,654
	15,000	Nippon Kayaku Co. Ltd.		144,195
	65,000	Nippon Light Metal Co. Ltd.		131,378
	18,000	Nippon Paint Co. Ltd.		125,783
	10,994	Nippon Shokubai Co. Ltd.		142,675
	2,600	Nippon Telegraph & Telephone Corp.		120,002
	43,000	Nishi-Nippon City Bank Ltd. (The)		120,828
	14,400	Nissan Motor Co. Ltd.		137,363
	18,000	Nissan Shatai Co. Ltd.		133,991
	13,000	Nisshinbo Holdings, Inc.		128,013
	7,400	Nissin Kogyo Co. Ltd.		124,397
	2,300	Nitto Denko Corp.		122,030
	68	NTT DoCoMo, Inc.		125,122
	38,000	Ogaki Kyoritsu Bank Ltd. (The)		121,297
	4,800	Otsuka Holdings Co. Ltd.		128,489
	16,000	Pacific Metals Co. Ltd.		120,483
	19,000	Rengo Co. Ltd.		113,101
	6,700	Sega Sammy Holdings, Inc.		115,603
	7,900	Seiko Epson Corp.		137,379
	16,000	Sekisui Chemical Co. Ltd.		132,906
	61	Seven Bank Ltd.		115,023
	349	SKY Perfect JSAT Holdings, Inc.		139,144
	25,000	Sumitomo Chemical Co. Ltd.		132,487
	8,400	Sumitomo Corp.		114,602
	7,000	Sumitomo Metal Mining Co. Ltd.		123,971
	34,000	Sumitomo Mitsui Trust Holdings, Inc.		115,652
	4,400	Takata Corp.		132,803
	2,100	TDK Corp.		107,666

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	23,984	Toagosei Co. Ltd.	$	128,876
	7,600	Tokai Rika Co. Ltd.		131,881
	10,300	Tokai Rubber Industries Ltd.		124,529
	19	Tokyu REIT, Inc. REIT		131,131
	10,000	TonenGeneral Sekiyu K.K.		123,737
	25,000	Toshiba Corp.		131,563
	11,000	Toshiba Plant Systems & Services Corp.		123,909
	29,000	Toshiba TEC Corp.		132,955
	34,000	Tosoh Corp.		130,737
	25,000	Toyo Ink Manufacturing Co. Ltd.		126,017
	7,700	Toyota Tsusho Corp.		127,258
	7,100	TS Tech Co. Ltd.		124,167
	24,000	Tsubakimoto Chain Co.		126,596
	25,000	Yokohama Rubber Co. Ltd. (The)		126,941
	14,000	Zeon Corp.		125,610
				13,390,984
		Jersey Island—0.4%
	62,037	Beazley PLC		135,448
		Netherlands—1.6%
	3,102	ASM International NV*		134,957
	2,029	Koninklijke DSM NV		140,126
	7,280	Koninklijke KPN NV		115,729
	9,792	STMicroelectronics NV		115,783
				506,595
		New Zealand—0.4%
	81,739	Telecom Corp. of New Zealand Ltd.		143,550
		Norway—2.5%
	15,954	Austevoll Seafood ASA		122,722
	7,126	Cermaq ASA*		146,898
	100,023	Marine Harvest ASA		132,306
	16,317	Prosafe SE		132,678
	4,363	Statoil ASA		127,832
	13,741	Storebrand ASA		142,943
				805,379
		Portugal—0.4%
	10,162	Semapa-Sociedade de Investimento e Gestao SGPS SA		128,149
		Singapore—1.2%
	77,000	Neptune Orient Lines Ltd.		118,437
	31,000	SembCorp Industries Ltd.		136,961
	32,000	UOL Group Ltd.		126,717
				382,115
		Spain—2.4%
	2,608	ACS Actividades de Construccion y Servicios SA		131,419
	17,228	Criteria Caixacorp SA		127,414
	15,192	Duro Felguera SA		129,373

See Notes to Financial Statements.

14

Schedule of Investments (Continued)

PowerShares Dynamic Developed International Opportunities Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	4,038	Endesa SA	$	140,993
	31,635	Mapfre SA		132,353
	3,510	Repsol YPF SA		125,551
				787,103
		Sweden—2.0%
	11,018	Billerud AB		134,357
	5,799	Boliden AB*		131,039
	5,403	Kinnevik Investment AB, Class B		139,839
	4,459	NCC AB, Class B		119,476
	11,404	Nordea Bank AB		130,455
				655,166
		Switzerland—3.6%
	1,995	Allied World Assurance Co. Holdings Ltd.		129,615
	1,199	Baloise Holding AG*		132,057
	6,794	Clariant AG*		140,425
	2,859	Credit Suisse Group AG		129,411
	167	Forbo Holding AG*		136,146
	3,560	Garmin Ltd.*		121,859
	303	Helvetia Holding AG*		141,565
	2,685	Noble Corp.		115,482
	1,304	Pargesa Holding SA		133,486
				1,180,046
		United Kingdom—9.7%
	2,336	Anglo American PLC		121,585
	2,639	AstraZeneca PLC		131,611
	26,023	Barclays PLC		122,533
	41,370	BT Group PLC		135,108
	158,596	Cable & Wireless Communications PLC		122,742
	15,802	Cape PLC		148,653
	20,139	Carillion PLC		131,542
	18,139	Drax Group PLC		133,092
	38,094	GKN PLC		141,692
	43,099	Highland Gold Mining Ltd.*		124,185
	20,078	Hiscox Ltd.		138,076
	21,080	Inchcape PLC*		128,125
	93,508	ITV PLC*		118,613
	5,824	Kier Group PLC		129,198
	64,364	Legal & General Group PLC		131,833
	12,953	Mondi PLC		127,901
	56,747	Old Mutual PLC		131,565
	43,676	Paragon Group of Cos. PLC		125,957
	1,790	Rio Tinto PLC		130,174
	4,276	Schroders PLC		135,368
	22,843	St. James's Place PLC		135,220
	18,356	Tullett Prebon PLC		128,744
	10,525	WS Atkins PLC		136,930
	5,247	Xstrata PLC		133,158
				3,143,605
		Total Common Stocks and Other Equity Interests (Cost $28,102,492)		32,010,724

Number of Shares			Value
		Preferred Stocks—0.9%
		Germany—0.4%
	4,306	ProSiebenSat.1 Media AG	$	123,519
		Italy—0.5%
	5,003	EXOR SpA		155,278
		Total Preferred Stocks (Cost $186,974)		278,797
		Total Investments (Cost $28,289,466)—99.9%		32,289,521
		Other assets less liabilities—0.1%		34,513
		Net Assets—100.0%	$	32,324,034

Investment Abbreviations:

REIT—Real Estate Investment Trust

Notes to Schedule of Investments:

*  Non-income producing security.

See Notes to Financial Statements.

15

Portfolio Composition

PowerShares Emerging Markets Infrastructure Portfolio

Sector Breakdown (% of the Fund's Net Assets) as of April 30, 2011 (Unaudited)

Industrials	53.6
Materials	43.1
Utilities	2.4
Consumer Discretionary	0.6
Other assets less liabilities	0.3

Schedule of Investments

PowerShares Emerging Markets Infrastructure Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—99.7%
		Australia—0.4%
	41,206	Leighton Holdings Ltd.	$	1,094,878
		Brazil—10.4%
	233,920	Cia Siderurgica Nacional SA ADR		3,726,345
	209,622	Gerdau SA ADR		2,532,234
	372,100	Iochpe-Maxion SA		5,204,527
	115,000	Lupatech SA*		859,813
	226,300	MMX Mineracao e Metalicos SA*		1,438,744
	745,900	Paranapanema SA*		2,475,426
	263,450	Vale SA ADR		8,799,230
	62,900	Weg SA		781,801
				25,818,120
		Cayman Islands—1.2%
	3,943,000	Lonking Holdings Ltd.		2,908,671
		Chile—2.5%
	95,907	CAP SA		5,160,358
	52,848	Molibdenos y Metales SA		1,171,974
				6,332,332
		China—16.8%
	1,442,000	Angang Steel Co. Ltd., H-Shares		1,850,860
	1,727,000	Anhui Conch Cement Co. Ltd., H-Shares		8,148,534
	1,290,000	China Communications Construction Co. Ltd., H-Shares		1,190,754
	1,742,000	China Molybdenum Co. Ltd., H-Shares		1,560,884
	3,468,000	China National Building Material Co. Ltd., H-Shares		7,304,248
	1,478,000	Dongfang Electric Corp. Ltd., H-Shares		4,861,592
	1,984,000	First Tractor Co. Ltd., H-Shares		2,732,993
	782,000	Guangzhou Shipyard International Co. Ltd., H-Shares		1,451,728
	896,000	Harbin Power Equipment Co. Ltd., H-Shares		863,978
	8,116,000	Hunan Non-Ferrous Metal Corp. Ltd., H-Shares*		3,531,603

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	1,844,000	Jiangxi Copper Co. Ltd., H-Shares	$	6,255,394
	3,950,000	Shanghai Electric Group Co. Ltd., H-Shares		1,962,897
				41,715,465
		Egypt—0.4%
	26,089	Orascom Construction Industries		1,060,406
		France—5.7%
	59,476	Alstom SA		3,961,472
	13,128	Areva SA CI		606,115
	142,630	Vinci SA		9,543,427
				14,111,014
		India—3.3%
	155,367	Larsen & Toubro Ltd. GDR		5,796,743
	87,746	Mahindra & Mahindra Ltd. GDR		1,544,329
	58,829	Sterlite Industries (India) Ltd. ADR		961,854
				8,302,926
		Indonesia—5.2%
	4,428,500	PT Aneka Tambang Tbk		1,176,417
	2,397,000	PT Indocement Tunggal Prakarsa Tbk		4,758,174
	2,796,500	PT International Nickel Indonesia Tbk		1,624,543
	3,860,000	PT Semen Gresik (Persero) Tbk		4,281,878
	393,500	PT United Tractors Tbk		1,068,294
				12,909,306
		Israel—2.1%
	293,173	Ormat Industries Ltd.		2,115,475
	1,043,258	Shikun & Binui Ltd.		3,028,824
				5,144,299
		Malaysia—5.5%
	6,189,600	Dialog Group Bhd		5,203,276
	2,246,200	Gamuda Bhd		2,836,188
	1,293,400	IJM Corp. Bhd		2,707,319
	416,600	Lafarge Malayan Cement Bhd		1,018,293
	1,895,700	WCT Bhd		1,945,621
				13,710,697

See Notes to Financial Statements.

16

Schedule of Investments (Continued)

PowerShares Emerging Markets Infrastructure Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
		Mexico—0.8%
	854,200	Empresas ICA SAB de CV*	$	2,103,649
		Poland—1.2%
	50,013	PBG SA		3,093,977
		Russia—5.2%
	35,263	Evraz Group SA GDR*		1,195,416
	185,245	LSR Group OJSC GDR		1,732,041
	33,622	Magnitogorsk Iron & Steel Works GDR		422,292
	40,070	Mechel ADR		1,144,800
	235,431	MMC Norilsk Nickel OJSC ADR		6,497,896
	24,621	Novolipetsk Steel OJSC GDR		939,537
	51,799	Severstal GDR		932,382
				12,864,364
		Singapore—3.6%
	2,918,000	Hyflux Ltd.		5,132,911
	4,476,000	Midas Holdings Ltd.		2,673,332
	237,000	SembCorp Marine Ltd.		1,099,439
				8,905,682
		South Africa—8.6%
	127,082	African Rainbow Minerals Ltd.		4,120,827
	525,195	Aveng Ltd.		2,780,172
	460,389	Group Five Ltd.		2,020,562
	778,769	Pretoria Portland Cement Co. Ltd.		2,955,615
	571,747	Raubex Group Ltd.		1,714,234
	230,400	Reunert Ltd.		2,179,062
	328,138	Wilson Bayly Holmes-Ovcon Ltd.		5,678,852
				21,449,324
		Spain—0.4%
	7,459	Acciona SA		869,137
		Sweden—2.4%
	204,473	Atlas Copco AB, Class A		6,018,102
		Switzerland—6.4%
	361,597	ABB Ltd. ADR*		9,988,702
	165,369	Foster Wheeler AG*		5,882,175
				15,870,877
		Taiwan—7.9%
	3,042,326	China Steel Corp.		3,760,614
	3,985,408	Chung Hung Steel Corp.*		2,372,722
	2,344,000	CTCI Corp.		2,962,893
	4,115,550	Taiwan Cement Corp.		6,028,504
	3,917,505	Tung Ho Steel Enterprise Corp.		4,623,555
				19,748,288
		United States—9.7%
	84,625	Caterpillar, Inc.		9,766,571
	52,224	Fluor Corp.		3,652,547

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	53,629	ITT Corp.	$	3,099,220
	200,570	KBR, Inc.		7,695,871
				24,214,209
		Total Common Stocks and Other Equity Interests (Cost $202,590,018)		248,245,723
		Rights—0.0%
		Australia—0.0%
	4,115	Leighton Holdings Ltd., expiring 05/06/11* (Cost $0)		8,016
		Total Investments (Cost $202,590,018)—99.7%		248,253,739
		Other assets less liabilities—0.3%		777,530
		Net Assets—100.0%	$	249,031,269

Investment Abbreviations:

ADR—American Depositary Receipt

CI—Investment Certificate

GDR—Global Depositary Receipt

Notes to Schedule of Investments:

*  Non-income producing security.

See Notes to Financial Statements.

17

Portfolio Composition

PowerShares FTSE RAFI Asia Pacific ex-Japan Portfolio

Sector Breakdown (% of the Fund's Net Assets) as of April 30, 2011 (Unaudited)

Financials	38.5
Industrials	16.5
Materials	12.7
Consumer Discretionary	7.6
Information Technology	7.2
Consumer Staples	5.7
Energy	4.6
Telecommunication Services	3.7
Utilities	2.8
Health Care	0.6
Other assets less liabilities	0.1

Schedule of Investments

PowerShares FTSE RAFI Asia Pacific ex-Japan Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—99.9%
		Australia—41.9%
	13,464	AGL Energy Ltd.	$	214,237
	50,902	Amcor Ltd.		389,932
	98,634	AMP Ltd.		591,512
	76,644	Asciano Ltd.		138,394
	3,614	ASX Ltd.		126,955
	99,262	Australia & New Zealand Banking Group Ltd.		2,632,042
	11,298	Bank of Queensland Ltd.		121,538
	16,349	Bendigo and Adelaide Bank Ltd.		167,107
	70,604	BHP Billiton Ltd.		3,541,079
	174,172	BlueScope Steel Ltd.		329,747
	34,445	Boral Ltd.		185,459
	46,228	Brambles Ltd.		340,468
	11,086	Caltex Australia Ltd.		172,153
	61,806	CFS Retail Property Trust REIT		121,071
	14,856	Coca-Cola Amatil Ltd.		194,117
	54,259	Commonwealth Bank of Australia		3,189,212
	11,860	Computershare Ltd.		125,637
	8,201	CSL Ltd.		308,283
	40,020	CSR Ltd.		131,388
	213,420	Dexus Property Group REIT		205,530
	56,050	Foster's Group Ltd.		344,722
	104,530	Goodman Fielder Ltd.		122,972
	225,655	Goodman Group REIT		175,331
	76,218	GPT Group REIT		263,573
	656,750	GPT Group-In Specie REIT*		—
	44,734	Incitec Pivot Ltd.		184,070
	104,343	Insurance Australia Group Ltd.		407,650
	5,836	Leighton Holdings Ltd.		155,067
	29,102	Lend Lease Group		277,076

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	17,716	Macquarie Group Ltd.	$	681,665
	47,916	MAP Group		154,689
	51,673	Metcash Ltd.		229,586
	174,139	Mirvac Group REIT		242,023
	110,528	National Australia Bank Ltd.		3,275,499
	5,069	Newcrest Mining Ltd.		229,934
	17,064	Oil Search Ltd.		131,652
	83,528	OneSteel Ltd.		194,701
	11,331	Orica Ltd.		329,594
	22,416	Origin Energy Ltd.		401,081
	106,635	Qantas Airways Ltd.*		246,229
	45,554	QBE Insurance Group Ltd.		932,732
	6,809	Rio Tinto Ltd.		612,582
	21,691	Santos Ltd.		358,912
	10,627	Sims Metal Management Ltd.		203,054
	12,769	Sonic Healthcare Ltd.		174,951
	114,018	Stockland REIT		471,652
	82,447	Suncorp Group Ltd.		750,680
	46,185	TABCORP Holdings Ltd.		385,640
	85,102	Tatts Group Ltd.		216,065
	319,901	Telstra Corp. Ltd.		1,018,744
	31,053	Toll Holdings Ltd.		191,324
	27,361	Transurban Group		158,695
	35,871	Wesfarmers Ltd.		1,307,206
	5,446	Wesfarmers Ltd. — PPS		200,429
	105,901	Westfield Group REIT		1,045,353
	109,964	Westpac Banking Corp.		2,989,225
	11,541	Woodside Petroleum Ltd.		591,079
	45,642	Woolworths Ltd.		1,324,131
	5,657	WorleyParsons Ltd.		187,889
				34,393,318

See Notes to Financial Statements.

18

Schedule of Investments (Continued)

PowerShares FTSE RAFI Asia Pacific ex-Japan Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
		Hong Kong—13.7%
	182,800	AIA Group Ltd.*	$	615,405
	61,262	Bank of East Asia Ltd. (The)		253,168
	133,932	BOC Hong Kong (Holdings) Ltd.		420,714
	71,904	Cathay Pacific Airways Ltd.		179,399
	174,000	Chaoda Modern Agriculture (Holdings) Ltd.		108,196
	46,673	Cheung Kong (Holdings) Ltd.		734,260
	73,845	CLP Holdings Ltd.		607,484
	78,079	Esprit Holdings Ltd.		324,676
	28,799	Hang Lung Group Ltd.		193,906
	48,427	Hang Lung Properties Ltd.		215,713
	26,860	Hang Seng Bank Ltd.		419,795
	37,580	Henderson Land Development Co. Ltd.		257,142
	97,819	Hong Kong & China Gas Co. Ltd.		242,797
	6,600	Hong Kong Exchanges & Clearing Ltd.		150,564
	51,684	Power Assets Holdings Ltd.		361,634
	47,000	Hongkong Land Holdings Ltd.		352,030
	119,948	Hutchison Whampoa Ltd.		1,369,714
	7,200	Jardine Matheson Holdings Ltd.		345,600
	4,500	Jardine Strategic Holdings Ltd.		127,800
	25,390	Kerry Properties Ltd.		135,324
	24,000	Kingboard Chemical Holdings Ltd.		131,469
	45,667	Li & Fung Ltd.*		233,403
	65,000	Link (The) REIT		204,600
	42,694	MTR Corp. Ltd.		155,549
	163,602	New World Development Co. Ltd.		286,866
	205,454	Noble Group Ltd.		374,852
	16,439	Orient Overseas International Ltd.		125,500
	219,000	Pacific Basin Shipping Ltd.		135,613
	511,029	PCCW Ltd.		202,633
	87,895	Sino Land Co. Ltd.		154,571
	55,888	Sun Hung Kai Properties Ltd.		872,755
	33,020	Swire Pacific Ltd., Class A		504,168
	42,236	Wharf Holdings Ltd. (The)		308,848
	39,736	Yue Yuen Industrial (Holdings) Ltd.		137,354
				11,243,502
		New Zealand—0.8%
	36,498	Fletcher Building Ltd.		270,832
	238,221	Telecom Corp. of New Zealand Ltd.		418,365
				689,197
		Singapore—7.1%
	111,000	CapitaLand Ltd.*		308,775
	75,000	CapitaMall Trust REIT		115,975
	18,000	City Developments Ltd.		174,367
	105,000	ComfortDelGro Corp. Ltd.		131,438
	62,000	DBS Group Holdings Ltd.		759,877
	56,000	Fraser and Neave Ltd.		287,273
	267,000	Golden Agri-Resources Ltd.		145,269
	5,000	Jardine Cycle & Carriage Ltd.		150,869
	49,000	Keppel Corp. Ltd.		477,071

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	72,000	Oversea-Chinese Banking Corp. Ltd.	$	562,569
	33,000	SembCorp Industries Ltd.		145,797
	32,000	Singapore Airlines Ltd.		368,632
	64,000	Singapore Press Holdings Ltd.		208,403
	49,000	Singapore Technologies Engineering Ltd.		126,283
	301,000	Singapore Telecommunications Ltd.		768,353
	42,000	United Overseas Bank Ltd.		674,199
	17,000	Venture Corp. Ltd.		134,220
	60,000	Wilmar International Ltd.		258,703
				5,798,073
		South Korea—36.4%
	9,640	BS Financial Group, Inc.*		140,329
	1,093	Cheil Industries, Inc.		120,351
	8,050	Daegu Bank Ltd.		134,461
	2,390	Daelim Industrial Co. Ltd.		269,855
	3,873	Dongbu Insurance Co. Ltd.		184,317
	4,580	Dongkuk Steel Mill Co. Ltd.		182,063
	2,989	Doosan Corp.		366,774
	2,154	Doosan Heavy Industries and Construction Co. Ltd.		120,197
	1,756	GS Engineering & Construction Corp.		211,379
	4,787	GS Holdings		399,791
	8,280	Hana Financial Group, Inc.		350,779
	4,150	Hankook Tire Co. Ltd.		166,325
	10,787	Hanwha Corp.		495,237
	396	Honam Petrochemical Corp.		139,680
	15,330	Hynix Semiconductor, Inc.		483,510
	2,924	Hyosung Corp.		239,835
	1,019	Hyundai Department Store Co. Ltd.		149,287
	4,600	Hyundai Development Co.		125,769
	2,076	Hyundai Engineering & Construction Co. Ltd.		174,154
	1,460	Hyundai Heavy Industries Co. Ltd.		728,876
	760	Hyundai Mipo Dockyard Co. Ltd.		134,746
	1,392	Hyundai Mobis		466,316
	8,580	Hyundai Motor Co.		1,973,564
	1,336	Hyundai Steel Co.		169,548
	8,640	Industrial Bank of Korea		165,681
	4,810	Kangwon Land, Inc.		109,293
	13,683	KB Financial Group, Inc.		734,169
	7,030	Kia Motors Corp.		504,462
	30,120	Korea Electric Power Corp.*		719,519
	24,440	Korea Exchange Bank		207,762
	3,840	Korea Gas Corp.		122,368
	1,070	Korea Kumho Petrochemical Co. Ltd.		203,187
	2,392	Korean Air Lines Co. Ltd.		146,201
	8,480	KT Corp.		304,652
	3,400	KT&G Corp.		201,148
	1,020	LG Chem Ltd.		504,456
	13,883	LG Corp.		1,276,047

See Notes to Financial Statements.

19

Schedule of Investments (Continued)

PowerShares FTSE RAFI Asia Pacific ex-Japan Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	15,420	LG Display Co. Ltd.	$	553,978
	10,500	LG Electronics, Inc.		1,009,191
	4,850	LG International Corp.		191,891
	408	Lotte Shopping Co. Ltd.		185,982
	2,600	LS Corp.		287,501
	4,436	POSCO		1,937,244
	7,242	Samsung C&T Corp.		523,730
	908	Samsung Electro-Mechanics Co. Ltd.		87,695
	5,039	Samsung Electronics Co. Ltd.		4,198,971
	1,688	Samsung Fire & Marine Insurance Co. Ltd.		362,282
	7,580	Samsung Heavy Industries Co. Ltd.		343,050
	2,328	Samsung Life Insurance Co. Ltd.		210,935
	1,098	Samsung SDI Co. Ltd.		196,209
	1,927	Samsung Securities Co. Ltd.		160,756
	23,860	Shinhan Financial Group Co. Ltd.		1,168,898
	956	Shinsegae Co. Ltd.		240,862
	13,545	SK Holdings Co. Ltd.		2,426,762
	3,848	SK Innovation Co. Ltd.		833,048
	2,132	SK Telecom Co. Ltd.		323,287
	5,013	S-Oil Corp.		746,114
	6,830	STX Corp. Ltd.		170,168
	5,040	STX Offshore & Shipbuilding Co. Ltd.		148,616
	31,620	Woori Finance Holdings Co. Ltd.		430,786
				29,864,044
		Total Common Stocks and Other Equity Interests (Cost $65,832,265)		81,988,134
		Rights—0.0%
		Australia—0.0%
	600	Leighton Holdings Ltd., expiring 05/06/11* (Cost $0)		1,169
		Total Investments (Cost $65,832,265)—99.9%		81,989,303
		Other assets less liabilities—0.1%		83,880
		Net Assets—100.0%	$	82,073,183

Investment Abbreviations:

PPS—Price Protected Shares

REIT—Real Estate Investment Trust

Notes to Schedule of Investments:

*  Non-income producing security.

See Notes to Financial Statements.

20

Portfolio Composition

PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio

Sector Breakdown (% of the Fund's Net Assets) as of April 30, 2011 (Unaudited)

Financials	29.2
Industrials	12.1
Energy	10.6
Consumer Discretionary	10.2
Materials	8.6
Telecommunication Services	7.3
Consumer Staples	7.0
Utilities	5.8
Health Care	4.9
Information Technology	4.1
Other assets less liabilities	0.2

Schedule of Investments

PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—99.3%
		Australia—5.1%
	5,508	AGL Energy Ltd.	$	87,642
	20,996	Amcor Ltd.		160,839
	47,681	AMP Ltd.		285,945
	31,284	Asciano Group		56,489
	1,475	ASX Ltd.		51,815
	40,515	Australia & New Zealand Banking Group Ltd.		1,074,300
	4,611	Bank of Queensland Ltd.		49,603
	6,673	Bendigo and Adelaide Bank Ltd.		68,206
	29,075	BHP Billiton Ltd.		1,458,230
	71,092	BlueScope Steel Ltd.		134,593
	14,060	Boral Ltd.		75,702
	18,868	Brambles Ltd.		138,962
	4,525	Caltex Australia Ltd.		70,268
	25,227	CFS Retail Property Trust REIT		49,417
	7,259	Coca-Cola Amatil Ltd.		94,850
	22,147	Commonwealth Bank of Australia		1,301,747
	4,841	Computershare Ltd.		51,282
	3,313	CSL Ltd.		124,539
	16,335	CSR Ltd.		53,629
	87,110	Dexus Property Group REIT		83,889
	22,879	Foster's Group Ltd.		140,712
	42,666	Goodman Fielder Ltd.		50,193
	92,105	Goodman Group REIT		71,565
	31,046	GPT Group REIT		107,362
	231,466	GPT Group-In Specie REIT*		—
	18,258	Incitec Pivot Ltd.		75,127
	41,866	Insurance Australia Group Ltd.		163,563
	2,341	Leighton Holdings Ltd.		62,202
	11,879	Lend Lease Group		113,098

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	7,231	Macquarie Group Ltd.	$	278,230
	18,529	MAP Group		59,818
	21,093	Metcash Ltd.		93,717
	71,077	Mirvac Group REIT		98,785
	45,113	National Australia Bank Ltd.		1,336,924
	2,070	Newcrest Mining Ltd.		93,897
	6,965	Oil Search Ltd.		53,736
	34,093	OneSteel Ltd.		79,470
	4,571	Orica Ltd.		132,960
	9,128	Origin Energy Ltd.		163,324
	45,597	Qantas Airways Ltd.*		105,287
	18,594	QBE Insurance Group Ltd.		380,718
	2,778	Rio Tinto Ltd.		249,927
	8,854	Santos Ltd.		146,503
	4,795	Sims Metal Management Ltd.		91,620
	6,431	Sonic Healthcare Ltd.		88,113
	46,537	Stockland REIT		192,507
	33,652	SunCorp Group Ltd.		306,401
	18,851	TABCORP Holdings Ltd.		157,404
	34,737	Tatts Group Ltd.		88,194
	131,117	Telstra Corp. Ltd.		417,550
	14,862	Toll Holdings Ltd.		91,568
	11,167	Transurban Group		64,769
	14,641	Wesfarmers Ltd.		533,545
	2,116	Wesfarmers Ltd. — PPS		77,875
	43,225	Westfield Group REIT		426,676
	44,883	Westpac Banking Corp.		1,220,085
	4,711	Woodside Petroleum Ltd.		241,277
	18,628	Woolworths Ltd.		540,421
	2,452	WorleyParsons Ltd.		81,440
				14,148,510

See Notes to Financial Statements.

21

Schedule of Investments (Continued)

PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
		Austria—0.5%
	6,013	Erste Group Bank AG	$	304,381
	6,221	Immoeast AG*		—
	22,102	Immofinanz AG*		105,257
	5,360	OMV AG		244,845
	1,065	Raiffeisen International Bank Holding AG		58,817
	11,579	Telekom Austria AG		179,345
	787	Vienna Insurance Group AG Wiener Versicherung Gruppe		47,054
	4,777	Voestalpine AG		235,471
	3,602	Wienerberger AG*		77,139
				1,252,309
		Belgium—1.0%
	129,381	Ageas		393,305
	11,270	Agfa Gevaert NV*		50,328
	6,985	Anheuser-Busch InBev NV		446,125
	424	Bekaert SA NV		53,148
	4,634	Belgacom SA		182,566
	871	Colruyt SA		50,351
	3,694	Delhaize Group SA		320,385
	63,263	Dexia SA*		252,475
	738	D'ieteren SA		53,749
	1,553	Groupe Bruxelles Lambert SA		154,255
	7,126	KBC Groep NV		290,945
	962	Solvay SA		138,997
	2,860	UCB SA		138,346
	2,120	Umicore SA		121,799
				2,646,774
		Bermuda—0.1%
	9,990	Catlin Group Ltd.		65,902
	2,542	Frontline Ltd.		56,186
	1,392	Seadrill Ltd.		49,393
				171,481
		Canada—5.8%
	1,142	Agrium, Inc.		103,217
	2,877	Alimentation Couche Tard, Inc., Class B		75,347
	1,069	ATCO Ltd., Class I		65,626
	9,831	Bank of Montreal		643,830
	13,477	Bank of Nova Scotia		819,400
	5,436	Barrick Gold Corp.		276,827
	5,225	BCE, Inc.		195,266
	353	Bombardier, Inc., Class A		2,623
	23,190	Bombardier, Inc., Class B		172,303
	7,872	Brookfield Asset Management, Inc., Class A		264,322
	4,605	Brookfield Properties Corp.		90,853
	1,964	Cameco Corp.		57,812
	5,813	Canadian Imperial Bank of Commerce		501,810
	4,378	Canadian National Railway Co.		338,622

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	7,658	Canadian Natural Resources Ltd.	$	359,232
	2,015	Canadian Pacific Railway Ltd.		133,257
	1,637	Canadian Tire Corp. Ltd., Class A		104,032
	1,261	Canadian Utilities Ltd., Class A		71,273
	6,685	Celestica, Inc.*		73,765
	6,425	Cenovus Energy, Inc.		246,342
	3,087	CGI Group, Inc., Class A*		67,346
	3,594	CI Financial Corp.		87,724
	1,513	Crescent Point Energy Corp.		68,502
	1,590	Emera, Inc.		52,785
	1,118	Empire Co. Ltd., Class A		63,273
	4,143	Enbridge, Inc.		268,530
	19,583	Encana Corp.		656,103
	384	Fairfax Financial Holdings Ltd.		154,636
	2,347	Finning International, Inc.		68,640
	386	First Quantum Minerals Ltd.		54,850
	2,382	Fortis, Inc.		81,563
	1,623	George Weston Ltd.		115,954
	4,145	Goldcorp, Inc.		231,047
	5,021	Great-West Lifeco, Inc.		144,198
	3,403	Groupe Aeroplan, Inc.		46,516
	2,314	H&R REIT		53,408
	5,053	Husky Energy, Inc.		157,632
	1,786	IGM Financial, Inc.		91,611
	2,904	Imperial Oil Ltd.		153,027
	1,393	Industrial Alliance Insurance & Financial Services, Inc.		59,693
	1,588	Intact Financial Corp.		80,333
	4,642	Kinross Gold Corp.		73,384
	2,741	Loblaw Cos. Ltd.		115,204
	5,121	Magna International, Inc.		262,405
	38,584	Manulife Financial Corp.		690,881
	1,601	Methanex Corp.		51,615
	2,317	Metro, Inc., Class A		113,060
	2,432	National Bank of Canada		200,793
	7,172	Nexen, Inc.		189,192
	3,918	Onex Corp.		146,587
	2,065	Pembina Pipeline Corp.		50,164
	2,925	Potash Corp. of Saskatchewan, Inc.		164,769
	12,002	Power Corp. of Canada		360,117
	6,042	Power Financial Corp.		200,392
	6,713	Precision Drilling Corp.*		101,383
	1,416	Quebecor, Inc., Class B		50,157
	3,426	Research In Motion Ltd.*		166,417
	2,524	RioCan REIT		67,433
	5,576	Rogers Communications, Inc., Class B		210,441
	4,013	RONA, Inc.		58,492
	19,983	Royal Bank of Canada		1,255,190
	1,282	Saputo, Inc.		60,854
	5,555	Shaw Communications, Inc., Class B		116,972
	5,841	Sherritt International Corp.		49,247

See Notes to Financial Statements.

22

Schedule of Investments (Continued)

PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	3,161	Shoppers Drug Mart Corp.	$	137,254
	2,219	Sino-Forest Corp.*		54,981
	1,066	SNC-Lavalin Group, Inc.		64,307
	12,340	Sun Life Financial, Inc.		402,772
	10,762	Suncor Energy, Inc.		494,631
	4,311	Superior Plus Corp.		50,023
	10,739	Talisman Energy, Inc.		258,614
	4,928	Teck Resources Ltd., Class B		267,110
	1,084	Telus Corp.		56,962
	922	Telus Corp. NVTG		46,263
	5,421	Thomson Reuters Corp.		219,160
	11,539	Toronto-Dominion Bank (The)		996,232
	4,776	TransAlta Corp.		106,105
	10,032	TransCanada Corp.		430,419
	1,574	Valeant Pharmaceuticals International, Inc.		82,777
	874	Vermilion Energy, Inc.		46,793
	8,205	Viterra, Inc.		98,320
	5,818	Yamana Gold, Inc.		73,947
				15,994,949
		Denmark—0.7%
	14	A P Moller - Maersk A/S, Class A		137,810
	37	A P Moller - Maersk A/S, Class B		375,399
	1,477	Carlsberg A/S, Class B		175,713
	559	Danisco A/S		74,286
	23,157	Danske Bank A/S*		557,428
	2,274	DSV A/S		59,534
	563	FLSmidth & Co. A/S		50,849
	1,414	Jyske Bank A/S*		70,410
	1,857	Novo Nordisk A/S, Class B		235,143
	3,828	Vestas Wind Systems A/S*		136,164
				1,872,736
		Finland—1.3%
	3,512	Elisa Oyj		84,669
	7,560	Fortum Oyj		260,885
	3,117	Huhtamaki Oyj		43,654
	2,121	Kesko Oyj, Class B		110,292
	1,536	Kone Oyj, Class B		96,371
	2,735	Metso Corp. Oyj		167,986
	5,663	Neste Oil Oyj		107,373
	139,983	Nokia Oyj		1,291,762
	1,362	Nokian Renkaat Oyj		70,723
	5,473	Outokumpu Oyj		91,266
	843	Outotec Oyj		53,516
	3,649	Pohjola Bank PLC, Class A		54,245
	4,020	Rautaruukki Oyj		104,431
	10,445	Sampo Oyj, Class A		352,074
	15,368	Stora Enso Oyj, Class R		185,478
	14,374	UPM-Kymmene Oyj		295,142
	1,558	Wartsila Oyj		61,346

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	2,290	YIT Oyj	$	68,764
				3,499,977
		France—11.6%
	4,795	Accor SA		213,416
	10,424	Air France-KLM*		184,266
	3,369	Air Liquide SA		499,225
	46,103	Alcatel-Lucent*		297,738
	4,920	Alstom SA		327,703
	1,180	Arkema SA		123,158
	1,418	Atos Origin SA*		87,526
	95,849	AXA SA		2,154,354
	26,157	BNP Paribas		2,073,433
	953	Bourbon SA		45,209
	9,315	Bouygues SA		464,550
	3,190	Cap Gemini		193,638
	22,264	Carrefour SA		1,057,318
	1,657	Casino Guichard Perrachon SA		174,713
	1,205	Christian Dior SA		193,701
	13,859	Cie de Saint-Gobain		958,872
	2,718	Cie Generale de Geophysique-Veritas*		96,274
	2,920	Cie Generale des Etablissements Michelin, Class B		293,154
	8,163	CNP Assurances		187,654
	35,258	Credit Agricole SA		587,951
	8,286	DANONE SA		607,956
	6,180	EDF SA		260,619
	2,252	Eiffage SA		155,978
	131	Eramet		51,659
	1,719	Essilor International SA		144,144
	797	Eurazeo		66,500
	2,046	Faurecia*		84,537
	439	Fonciere des Regions REIT		49,890
	79,017	France Telecom SA		1,856,331
	34,922	GDF Suez		1,431,259
	4,973	Groupe Eurotunnel SA		54,117
	679	Imerys SA		52,695
	1,420	Klepierre REIT		58,440
	7,545	Lafarge SA		534,782
	4,290	Lagardere SCA		188,680
	2,213	Legrand SA		101,221
	2,747	L'Oreal SA		348,899
	3,035	LVMH Moet Hennessy Louis Vuitton SA		545,956
	2,238	Metropole Television SA		59,516
	22,959	Natixis*		132,229
	568	Neopost SA		54,286
	1,035	Nexans SA		109,882
	5,183	PagesJaunes Groupe		54,126
	3,148	Pernod-Ricard SA		316,932
	2,197	PPR		393,581
	14,181	PSA Peugeot Citroen SA*		645,054

See Notes to Financial Statements.

23

Schedule of Investments (Continued)

PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	1,660	Publicis Groupe SA	$	94,226
	1,173	Rallye SA		61,805
	9,080	Renault SA*		554,201
	1,900	Rexel SA*		52,135
	2,109	Rhodia SA		98,483
	2,790	Safran SA		108,448
	28,878	Sanofi-Aventis SA		2,287,838
	3,332	Schneider Electric SA		589,742
	4,541	SCOR SE		138,951
	20,600	Societe Generale		1,380,187
	3,375	Societe Television Francaise 1		63,441
	2,503	Sodexo		195,365
	12,575	STMicroelectronics NV		148,747
	8,972	Suez Environnement Co.		207,117
	1,390	Technip SA		157,058
	2,264	Thales SA		100,178
	64,331	Total SA		4,124,981
	1,506	Unibail-Rodamco SE REIT		352,908
	1,994	Valeo SA*		127,192
	2,122	Vallourec SA		265,047
	18,128	Veolia Environnement		606,610
	10,079	Vinci SA		674,390
	38,333	Vivendi SA		1,204,809
	482	Wendel		60,476
	705	Zodiac Aerospace		55,435
				32,282,892
		Germany—8.9%
	2,828	Adidas AG		210,872
	15,218	Allianz SE		2,399,981
	1,880	Aurubis AG		111,288
	17,363	BASF SE*		1,787,727
	12,300	Bayer AG		1,083,036
	6,778	Bayerische Motoren Werke (BMW) AG		640,255
	803	Beiersdorf AG		52,383
	989	Bilfinger Berger AG*		95,417
	4,310	Celesio AG		104,675
	33,174	Commerzbank AG*		211,633
	1,554	Continental AG*		156,245
	27,555	Daimler AG		2,133,559
	24,229	Deutsche Bank AG		1,585,225
	2,583	Deutsche Boerse AG		214,983
	9,887	Deutsche Lufthansa AG*		224,719
	35,495	Deutsche Post AG*		703,543
	142,883	Deutsche Telekom AG		2,377,370
	983	Douglas Holding AG		57,723
	68,413	E.ON AG		2,342,563
	3,851	Freenet AG		49,135
	2,371	Fresenius Medical Care AG & Co. KGaA		186,645
	1,447	Fresenius SE		152,120
	2,622	GEA Group AG		96,044

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	1,422	Hannover Rueckversicherung AG	$	86,138
	4,521	HeidelbergCement AG		346,301
	1,552	Henkel AG & Co. KGaA		88,257
	1,328	Hochtief AG		125,956
	10,999	Infineon Technologies AG		125,062
	1,556	K+S AG		126,112
	1,351	Lanxess AG		124,129
	1,647	Linde AG		297,128
	2,246	MAN SE*		313,523
	876	Merck KGaA		92,950
	5,085	Metro AG		373,848
	7,189	Muenchener Rueckversicherungs- Gesellschaft AG		1,188,681
	3,814	Praktiker Bau- und Heimwerkermaerkte Holding AG		45,171
	13,704	RWE AG		895,694
	1,624	Salzgitter AG		127,720
	6,134	SAP AG		395,868
	12,141	Siemens AG		1,769,177
	1,694	Symrise AG		55,969
	12,592	ThyssenKrupp AG		580,341
	2,052	Tognum AG		78,849
	15,431	TUI AG*		197,067
	732	Volkswagen AG*		130,754
	552	Wincor Nixdorf AG		45,697
				24,587,533
		Greece—0.4%
	26,108	Alpha Bank AE*		152,611
	1,920	Coca-Cola Hellenic Bottling Co. SA		53,153
	22,724	EFG Eurobank Ergasias SA*		128,111
	16,405	Hellenic Telecommunications Organization SA		194,951
	32,805	National Bank of Greece SA*		255,028
	8,402	OPAP SA		177,879
	51,822	Piraeus Bank SA*		84,571
	5,228	Public Power Corp. SA		86,638
				1,132,942
		Hong Kong—1.6%
	74,600	AIA Group Ltd.*		251,145
	25,095	Bank of East Asia Ltd. (The)		103,706
	55,242	BOC Hong Kong (Holdings) Ltd.		173,529
	28,085	Cathay Pacific Airways Ltd.		70,071
	72,000	Chaoda Modern Agriculture (Holdings) Ltd.		44,771
	18,435	Cheung Kong (Holdings) Ltd.		290,020
	30,210	CLP Holdings Ltd.		248,522
	31,816	Esprit Holdings Ltd.		132,300
	11,072	Hang Lung Group Ltd.		74,549
	18,607	Hang Lung Properties Ltd.		82,883
	11,369	Hang Seng Bank Ltd.		177,686

See Notes to Financial Statements.

24

Schedule of Investments (Continued)

PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	14,863	Henderson Land Development Co. Ltd.	$	101,700
	40,858	Hong Kong & China Gas Co. Ltd.		101,414
	2,600	Hong Kong Exchanges & Clearing Ltd.		59,313
	21,554	Hongkong Electric Holdings Ltd.		150,814
	18,000	Hongkong Land Holdings Ltd.		134,820
	49,856	Hutchison Whampoa Ltd.		569,317
	2,800	Jardine Matheson Holdings Ltd.		134,400
	2,000	Jardine Strategic Holdings Ltd.		56,800
	9,987	Kerry Properties Ltd.		53,229
	9,500	Kingboard Chemical Holdings Ltd.		52,040
	16,981	Li & Fung Ltd.		86,789
	26,500	Link (The) REIT		83,414
	18,375	MTR Corp. Ltd.		66,946
	66,928	New World Development Co. Ltd.		117,354
	82,509	Noble Group Ltd.		150,538
	6,664	Orient Overseas International Ltd.		50,875
	88,000	Pacific Basin Shipping Ltd.		54,493
	208,320	PCCW Ltd.		82,603
	34,078	Sino Land Co. Ltd.		59,929
	22,733	Sun Hung Kai Properties Ltd.		355,002
	13,308	Swire Pacific Ltd., Class A		203,194
	16,201	Wharf Holdings Ltd. (The)		118,469
	17,148	Yue Yuen Industrial (Holdings) Ltd.		59,275
				4,551,910
		Ireland—0.3%
	5,231	Anglo Irish Bank Corp. Ltd.*		—
	18,801	CRH PLC		467,211
	2,126	DCC PLC		70,968
	289,675	Governor & Co. of the Bank of Ireland (The)*		120,333
	1,845	Kerry Group PLC, Class A		76,643
	10,552	Ryanair Holdings PLC		54,714
	4,221	Smurfit Kappa Group PLC*		57,607
				847,476
		Israel—0.3%
	44,205	Bank Hapoalim BM*		232,244
	11,071	Bank Leumi Le-Israel		57,540
	40,723	Bezeq Israeli Telecommunication Corp. Ltd.		120,996
	1,463	Cellcom Israel Ltd.		46,943
	4,339	Israel Chemicals Ltd.		76,760
	6,933	Teva Pharmaceutical Industries Ltd.		323,293
				857,776
		Italy—5.1%
	54,587	A2A SpA		98,721
	49,820	Assicurazioni Generali SpA		1,195,912
	7,021	Atlantia SpA		173,016
	18,929	Banca Carige SpA		45,944
	140,846	Banca Monte dei Paschi di Siena SpA*		191,198
	9,100	Banca Popolare Dell'emilia Romagna Scrl		111,381

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	29,218	Banca Popolare di Milano Scarl	$	100,133
	6,548	Banca Popolare DI Sondrio Scarl		56,879
	82,759	Banco Popolare Societa Cooperativa Scarl		245,808
	3,295	Buzzi Unicem SpA		51,084
	260,009	Enel SpA		1,856,998
	95,733	Eni SpA		2,563,633
	3,501	ERG SpA		51,811
	1,104	EXOR SpA		39,883
	12,753	Fiat Industrial SpA*		189,771
	52,267	Fiat SpA		558,700
	18,092	Finmeccanica SpA		244,793
	9,896	Fondiaria-Sai SpA		92,128
	5,100	Fondiaria-Sai SpA RSP		28,737
	370,628	Intesa Sanpaolo SpA		1,232,795
	5,825	Italcementi SpA		63,994
	6,934	Italcementi SpA RSP		39,297
	1,359	Luxottica Group SpA		44,941
	29,924	Mediaset SpA		199,601
	15,700	Mediobanca SpA		179,119
	36,361	Parmalat SpA*		137,884
	10,541	Piccolo Credito Valtellinese Scarl		50,325
	9,347	Pirelli & C. SpA		97,417
	3,593	Prysmian SpA		84,916
	2,751	Saipem SpA		156,439
	15,964	Saras SpA*		40,145
	20,514	Snam Rete Gas SpA		127,825
	706,903	Telecom Italia SpA		1,066,590
	318,639	Telecom Italia SpA RSP		412,223
	23,889	Terna-Rete Elettrica Nationale SpA		119,793
	29,045	UBI Banca-Unione di Banche Italiane ScpA		260,702
	777,379	UniCredit SpA		2,004,470
	103,955	Unipol Gruppo Finanziario SpA		84,208
				14,299,214
		Japan—14.5%
	24,400	Aeon Co. Ltd.		292,896
	27,450	Aiful Corp.*		31,462
	3,700	Aisin Seiki Co. Ltd.		129,915
	10,000	Ajinomoto Co., Inc.		110,057
	2,200	Alfresa Holdings Corp.		77,193
	14,000	All Nippon Airways Co. Ltd.		40,892
	3,400	Alps Electric Co. Ltd.		33,439
	7,000	Amada Co. Ltd.		55,817
	7,000	Asahi Breweries Ltd.		130,527
	14,000	Asahi Glass Co. Ltd.		177,027
	22,000	Asahi Kasei Corp.		150,210
	6,000	Astellas Pharma, Inc.		228,494
	5,000	Bank of Kyoto Ltd. (The)		46,093
	18,000	Bank of Yokohama Ltd. (The)		88,736
	1,000	Benesse Holdings, Inc.		41,533
	13,600	Bridgestone Corp.		296,672

See Notes to Financial Statements.

25

Schedule of Investments (Continued)

PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	4,700	Brother Industries Ltd.	$	71,595
	20,700	Canon, Inc.		969,436
	6,300	Casio Computer Co. Ltd.		49,847
	34	Central Japan Railway Co.		256,027
	11,000	Chiba Bank Ltd. (The)		64,666
	14,600	Chubu Electric Power Co., Inc.		319,026
	2,300	Chugai Pharmaceutical Co. Ltd.		37,842
	4,000	Chugoku Bank Ltd. (The)		46,438
	7,300	Chugoku Electric Power Co., Inc. (The)		129,014
	59,000	Chuo Mitsui Trust Holdings, Inc.		200,690
	44,000	Cosmo Oil Co. Ltd.		143,702
	5,200	Credit Saison Co. Ltd.		86,709
	15,000	Dai Nippon Printing Co. Ltd.		178,580
	6,000	Daicel Chemical Industries Ltd.		38,452
	4,000	Daihatsu Motor Co. Ltd.		64,136
	198	Dai-Ichi Life Insurance Co. Ltd. (The)		325,038
	8,700	Daiichi Sankyo Co. Ltd.		169,947
	3,400	Daikin Industries Ltd.		107,523
	1,200	Daito Trust Construction Co. Ltd.		95,391
	11,000	Daiwa House Industry Co. Ltd.		131,908
	39,000	Daiwa Securities Group, Inc.		167,266
	9,000	Denki Kagaku Kogyo Kabushiki Kaisha		46,032
	7,000	Denso Corp.		233,448
	2,600	Dentsu, Inc.		68,829
	23,000	DIC Corp.		54,708
	7,000	DOWA Holdings Co. Ltd.		45,551
	6,300	East Japan Railway Co.		347,455
	4,400	EDION Corp.		37,851
	3,700	Eisai Co. Ltd.		134,065
	4,600	Electric Power Development Co. Ltd.		120,527
	4,200	Elpida Memory, Inc.*		62,218
	900	Fanuc Corp.		149,187
	400	Fast Retailing Co. Ltd.		62,657
	20,000	Fuji Electric Holdings Co. Ltd.		62,115
	12,000	Fuji Heavy Industries Ltd.		89,031
	8,300	FUJIFILM Holdings Corp.		256,754
	12,000	Fujikura Ltd.		61,523
	52,000	Fujitsu Ltd.		295,440
	20,000	Fukuoka Financial Group, Inc.		82,327
	16,000	Furukawa Electric Co. Ltd.		63,101
	7,000	Gunma Bank Ltd. (The)		37,700
	8,000	Hachijuni Bank Ltd. (The)		47,523
	980	Hakuhodo DY Holdings, Inc.		50,848
	24,000	Hankyu Hanshin Holdings, Inc.		105,891
	17,000	Hanwa Co. Ltd.		72,073
	52,000	HASEKO Corp.*		34,607
	109,000	Hitachi Ltd.		588,390
	4,400	Hokkaido Electric Power Co., Inc.		79,660
	24,000	Hokuhoku Financial Group, Inc.		45,551
	3,700	Hokuriku Electric Power Co.		74,784
	24,600	Honda Motor Co. Ltd.		967,143

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	5,900	HOYA	$	126,013
	1,500	Ibiden Co. Ltd.		50,413
	1,100	Idemitsu Kosan Co. Ltd.		128,654
	28,000	IHI Corp.		70,397
	40	Inpex Corp.		303,673
	8,100	Isetan Mitsukoshi Holdings Ltd.		77,865
	22,000	Isuzu Motors Ltd.		93,813
	27,000	ITOCHU Corp.		279,184
	14,000	J Front Retailing Co. Ltd.		60,217
	59	Japan Tobacco, Inc.		228,321
	13,400	JFE Holdings, Inc.		364,314
	3,000	JGC Corp.		73,909
	11,000	Joyo Bank Ltd. (The)		44,060
	4,400	JS Group Corp.		105,418
	2,400	JSR Corp.		49,840
	7,300	JTEKT Corp.		94,286
	40,000	Kajima Corp.		113,877
	47,000	Kanematsu Corp.*		46,340
	16,800	Kansai Electric Power Co., Inc. (The)		352,398
	8,200	Kao Corp.		204,545
	22,000	Kawasaki Heavy Industries Ltd.		90,288
	20,000	Kawasaki Kisen Kaisha Ltd.		66,552
	77	KDDI Corp.		510,550
	8,000	Keio Corp.		44,762
	300	Keyence Corp.		78,235
	5,000	Kinden Corp.		42,519
	23,000	Kintetsu Corp.		68,881
	15,000	Kirin Holdings Co. Ltd.		208,528
	67,000	Kobe Steel Ltd.		164,321
	9,900	Komatsu Ltd.		346,512
	11,000	Konica Minolta Holdings, Inc.		96,389
	9,000	Kubota Corp.		85,408
	5,700	Kuraray Co. Ltd.		82,683
	2,500	Kyocera Corp.		273,909
	10,800	Kyushu Electric Power Co., Inc.		199,123
	1,200	Lawson, Inc.		58,639
	1,300	Makita Corp.		59,360
	36,000	Marubeni Corp.		259,995
	7,400	Marui Group Co. Ltd.		50,890
	69,000	Mazda Motor Corp.*		157,321
	12,300	Medipal Holdings Corp.		101,717
	1,900	MEIJI Holdings Co. Ltd.		81,020
	7,000	Minebea Co. Ltd.		37,614
	29,000	Mitsubishi Chemical Holdings Corp.		195,502
	22,400	Mitsubishi Corp.		601,548
	24,000	Mitsubishi Electric Corp.		263,544
	9,000	Mitsubishi Estate Co. Ltd.		156,175
	7,000	Mitsubishi Gas Chemical Co., Inc.		54,264
	85,000	Mitsubishi Heavy Industries Ltd.		403,315
	26,000	Mitsubishi Materials Corp.		89,401
	95,000	Mitsubishi Motors Corp.*		115,911

See Notes to Financial Statements.

26

Schedule of Investments (Continued)

PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	289,260	Mitsubishi UFJ Financial Group, Inc.	$	1,379,635
	27,000	Mitsui & Co. Ltd.		476,510
	29,000	Mitsui Chemicals, Inc.		106,150
	17,000	Mitsui Engineering & Shipbuilding Co. Ltd.		41,903
	11,000	Mitsui Fudosan Co. Ltd.		187,762
	14,000	Mitsui Mining & Smelting Co. Ltd.		49,692
	28,000	Mitsui OSK Lines Ltd.		155,287
	390,100	Mizuho Financial Group, Inc.		615,391
	10,800	MS&AD Insurance Group Holdings, Inc.		251,432
	2,200	Murata Manufacturing Co. Ltd.		158,615
	20,000	Nagoya Railroad Co. Ltd.		52,502
	4,300	Namco Bandai Holdings, Inc.		47,271
	134,000	NEC Corp.*		279,098
	3,000	NGK Insulators Ltd.		51,541
	800	Nidec Corp.		69,411
	3,700	Nikon Corp.		77,110
	1,300	Nintendo Co. Ltd.		307,136
	4,000	Nippon Electric Glass Co. Ltd.		60,291
	33,000	Nippon Express Co. Ltd.		130,552
	5,000	Nippon Meat Packers, Inc.		68,893
	4,200	Nippon Paper Group, Inc.		83,700
	25,000	Nippon Sheet Glass Co. Ltd.		73,330
	134,000	Nippon Steel Corp.		416,170
	16,500	Nippon Telegraph & Telephone Corp.		761,554
	45,000	Nippon Yusen Kabushiki Kaisha		165,270
	60,300	Nissan Motor Co. Ltd.		575,206
	3,500	Nisshin Seifun Group, Inc.		43,524
	24,000	Nisshin Steel Co. Ltd.		47,326
	1,300	Nissin Foods Holdings Co. Ltd.		45,950
	1,500	Nitto Denko Corp.		79,585
	2,500	NOK Corp.		42,673
	61,700	Nomura Holdings, Inc.		313,291
	2,200	Nomura Research Institute Ltd.		47,123
	7,000	NSK Ltd.		61,770
	10,000	NTN Corp.		47,695
	21	NTT Data Corp.		68,896
	329	NTT DoCoMo, Inc.		605,370
	20,000	Obayashi Corp.		84,052
	8,000	Odakyu Electric Railway Co. Ltd.		64,481
	24,000	OJI Paper Co. Ltd.		107,370
	2,900	Olympus Corp.		81,560
	3,500	OMRON Corp.		95,631
	1,200	Ono Pharmaceutical Co. Ltd.		60,858
	2,290	ORIX Corp.		223,243
	40,000	Osaka Gas Co. Ltd.		146,907
	5,800	Otsuka Holdings Co. Ltd.		155,258
	78,100	Panasonic Corp.		960,609
	7,300	Promise Co. Ltd.*		61,628
	12,500	Resona Holdings, Inc.		58,849
	16,000	Ricoh Co. Ltd.		175,499
	1,900	Rohm Co. Ltd.		114,272

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	800	Sankyo Co. Ltd.	$	41,311
	392	SBI Holdings, Inc.		41,934
	2,200	Secom Co. Ltd.		108,861
	1,900	Sega Sammy Holdings, Inc.		32,783
	5,900	Seiko Epson Corp.		102,599
	6,000	Seino Holdings Co. Ltd.		44,811
	10,000	Sekisui Chemical Co. Ltd.		83,066
	13,000	Sekisui House Ltd.		124,489
	15,800	Seven & I Holdings Co. Ltd.		393,929
	26,000	Sharp Corp.		237,441
	3,300	Shikoku Electric Power Co., Inc.		83,537
	22,000	Shimizu Corp.		92,729
	4,600	Shin-Etsu Chemical Co. Ltd.		238,107
	67,000	Shinsei Bank Ltd.		80,096
	2,700	Shionogi & Co. Ltd.		43,658
	4,500	Shiseido Co. Ltd.		74,371
	9,000	Shizuoka Bank Ltd. (The)		81,637
	36,000	Showa Denko K.K.		71,432
	7,100	Showa Shell Sekiyu K.K.		77,003
	400	SMC Corp.		72,714
	6,000	SoftBank Corp.		250,678
	138,300	Sojitz Corp.		262,487
	23,200	Sony Corp.		646,192
	2,200	Stanley Electric Co. Ltd.		36,793
	33,000	Sumitomo Chemical Co. Ltd.		174,883
	24,000	Sumitomo Corp.		327,434
	13,500	Sumitomo Electric Industries Ltd.		186,511
	5,700	Sumitomo Forestry Co. Ltd.		49,526
	8,000	Sumitomo Heavy Industries Ltd.		52,058
	95,000	Sumitomo Metal Industries Ltd.		199,039
	8,000	Sumitomo Metal Mining Co. Ltd.		141,681
	27,400	Sumitomo Mitsui Financial Group, Inc.		842,531
	5,000	Sumitomo Realty & Development Co. Ltd.		102,354
	2,000	Suzuken Co. Ltd.		49,667
	10,200	Suzuki Motor Corp.		241,109
	5,300	T&D Holdings, Inc.		130,051
	45,000	Taiheiyo Cement Corp.		75,980
	43,000	Taisei Corp.		100,160
	3,000	Taisho Pharmaceutical Co. Ltd.		70,397
	5,000	Taiyo Nippon Sanso Corp.		40,177
	8,000	Takashimaya Co. Ltd.		54,523
	9,800	Takeda Pharmaceutical Co. Ltd.		473,453
	1,600	TDK Corp.		82,031
	18,000	Teijin Ltd.		85,630
	1,000	Terumo Corp.		55,460
	12,000	Tobu Railway Co. Ltd.		46,586
	9,000	Toho Gas Co. Ltd.		41,928
	10,500	Tohoku Electric Power Co., Inc.		154,123
	10,300	Tokio Marine Holdings, Inc.		285,491
	28,600	Tokyo Electric Power Co., Inc. (The)		149,803
	1,400	Tokyo Electron Ltd.		80,491

See Notes to Financial Statements.

27

Schedule of Investments (Continued)

PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	44,000	Tokyo Gas Co. Ltd.	$	194,676
	24,000	Tokyu Corp.		98,792
	9,000	Tokyu Land Corp.		38,600
	9,000	TonenGeneral Sekiyu K.K.		111,363
	17,000	Toppan Printing Co. Ltd.		132,832
	17,000	Toray Industries, Inc.		124,661
	65,000	Toshiba Corp.		342,063
	17,000	Tosoh Corp.		65,368
	5,000	TOTO Ltd.		38,883
	4,900	Toyo Seikan Kaisha Ltd.		82,673
	2,700	Toyota Industries Corp.		81,526
	54,000	Toyota Motor Corp.		2,149,618
	7,800	Toyota Tsusho Corp.		128,911
	17,000	Ube Industries Ltd.		53,845
	7,600	UNY Co. Ltd.		66,221
	41	West Japan Railway Co.		148,305
	1,700	Yakult Honsha Co. Ltd.		46,973
	1,940	Yamada Denki Co. Ltd.		134,370
	4,000	Yamaguchi Financial Group, Inc.		35,938
	4,200	Yamaha Corp.		52,435
	5,900	Yamaha Motor Co. Ltd.*		111,761
	7,400	Yamato Holdings Co. Ltd.		117,466
	8,000	Yokohama Rubber Co. Ltd. (The)		40,621
				40,322,066
		Jersey Island—0.0%
	8,920	Informa PLC		61,997
		Luxembourg—0.5%
	2,398	APERAM		101,127
	30,495	ArcelorMittal		1,123,821
	4,093	SES SA		107,663
	5,348	Tenaris SA		135,121
				1,467,732
		Netherlands—3.9%
	95,746	Aegon NV*		761,524
	5,061	Akzo Nobel NV		393,746
	2,168	ASML Holding NV		89,916
	1,170	Corio NV REIT		82,989
	1,467	CSM NV		56,294
	6,952	Delta Lloyd NV		183,280
	7,902	European Aeronautic Defence and Space Co. NV*		244,902
	804	Fugro NV CVA		73,871
	866	Gemalto NV		44,460
	2,254	Heineken Holding NV		119,165
	3,128	Heineken NV		187,554
	1,335	Imtech NV		50,783
	379,060	ING Groep NV CVA*		5,005,124
	29,887	Koninklijke Ahold NV		420,302
	11,299	Koninklijke BAM Groep NV		90,454

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	941	Koninklijke Boskalis Westminster NV	$	50,126
	3,819	Koninklijke DSM NV		263,746
	40,429	Koninklijke KPN NV		642,691
	19,677	Koninklijke Philips Electronics NV		584,440
	795	Nutreco NV		61,981
	2,006	Randstad Holding NV		113,032
	2,574	SBM Offshore NV*		75,440
	20,059	SNS REAAL NV*		123,502
	8,391	TNT NV		206,963
	21,482	Unilever NV CVA		708,167
	2,293	USG People NV*		45,466
	429	Wereldhave NV REIT		44,902
	5,139	Wolters Kluwer NV		119,929
				10,844,749
		New Zealand—0.1%
	13,224	Fletcher Building Ltd.		98,128
	97,758	Telecom Corp. of New Zealand Ltd.		171,683
				269,811
		Norway—0.9%
	3,712	Aker Solutions ASA*		89,699
	19,124	DnB NOR ASA		311,369
	42,188	Norsk Hydro ASA		374,446
	23,463	Norske Skogindustrier ASA*		66,729
	24,458	Orkla ASA		248,126
	3,372	Petroleum Geo-Services ASA*		53,325
	31,863	Statoil ASA		933,561
	12,371	Storebrand ASA		128,691
	13,762	Telenor ASA		238,121
	2,328	Yara International ASA		136,550
				2,580,617
		Portugal—0.4%
	155,919	Banco Comercial Portugues SA, Class R*		124,682
	8,661	Brisa Auto-Estradas de Portugal SA		58,041
	81,766	EDP-Energias de Portugal SA		334,810
	3,164	Galp Energia SGPS SA, Class B		70,905
	27,467	Portugal Telecom SGPS SA		335,862
	46,232	Sonae		55,626
				979,926
		Singapore—0.8%
	47,000	CapitaLand Ltd.*		130,742
	29,000	CapitaMall Trust REIT		44,844
	7,000	City Developments Ltd.		67,809
	44,000	ComfortDelGro Corp. Ltd.		55,079
	25,000	DBS Group Holdings Ltd.		306,402
	22,000	Fraser and Neave Ltd.		112,857
	118,000	Golden Agri-Resources Ltd.		64,201
	2,000	Jardine Cycle & Carriage Ltd.		60,348
	17,600	Keppel Corp. Ltd.		171,356
	28,000	Oversea-Chinese Banking Corp. Ltd.		218,777

See Notes to Financial Statements.

28

Schedule of Investments (Continued)

PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	13,000	SembCorp Industries Ltd.	$	57,435
	13,000	Singapore Airlines Ltd.		149,757
	25,000	Singapore Press Holdings Ltd.		81,407
	19,000	Singapore Technologies Engineering Ltd.		48,967
	123,000	Singapore Telecommunications Ltd.		313,978
	17,000	United Overseas Bank Ltd.		272,890
	6,000	Venture Corp. Ltd.		47,372
	23,000	Wilmar International Ltd.		99,170
				2,303,391
		South Korea—4.4%
	3,880	BS Financial Group, Inc.*		56,481
	446	Cheil Industries, Inc.		49,109
	3,270	Daegu Bank Ltd.		54,620
	976	Daelim Industrial Co. Ltd.		110,200
	1,596	Dongbu Insurance Co. Ltd.		75,954
	1,870	Dongkuk Steel Mill Co. Ltd.		74,336
	1,333	Doosan Corp.		163,570
	878	Doosan Heavy Industries and Construction Co. Ltd.		48,994
	730	GS Engineering & Construction Corp.		87,874
	1,954	GS Holdings		163,190
	3,360	Hana Financial Group, Inc.		142,345
	1,700	Hankook Tire Co. Ltd.		68,133
	4,400	Hanwha Corp.		202,006
	165	Honam Petrochemical Corp.		58,200
	6,250	Hynix Semiconductor, Inc.		197,126
	1,192	Hyosung Corp.		97,772
	416	Hyundai Department Store Co. Ltd.		60,945
	1,880	Hyundai Development Co.		51,401
	926	Hyundai Engineering & Construction Co. Ltd.		77,682
	597	Hyundai Heavy Industries Co. Ltd.		298,040
	307	Hyundai Mipo Dockyard		54,430
	567	Hyundai Mobis		189,944
	3,502	Hyundai Motor Co.		805,527
	546	Hyundai Steel Co.		69,291
	3,540	Industrial Bank of Korea		67,883
	1,990	Kangwon Land, Inc.		45,217
	5,584	KB Financial Group, Inc.		299,613
	2,870	Kia Motors Corp.		205,947
	12,300	Korea Electric Power Corp.*		293,827
	9,970	Korea Exchange Bank		84,754
	1,610	Korea Gas Corp.		51,305
	436	Korea Kumho Petrochemical Co. Ltd.		82,794
	1,000	Korean Air Lines Co. Ltd.		61,121
	3,660	KT Corp.		131,489
	1,420	KT&G Corp.		84,009
	417	LG Chem Ltd.		206,233
	5,666	LG Corp.		520,787
	6,290	LG Display Co. Ltd.		225,974

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	4,286	LG Electronics, Inc.	$	411,942
	1,970	LG International Corp.		77,943
	174	Lotte Shopping Co. Ltd.		79,316
	1,060	LS Corp.		117,212
	1,811	POSCO		790,881
	2,905	Samsung C&T Corp.		210,085
	377	Samsung Electro-Mechanics Co. Ltd.		36,411
	2,071	Samsung Electronics Co. Ltd.		1,725,753
	689	Samsung Fire & Marine Insurance Co. Ltd.		147,875
	3,090	Samsung Heavy Industries Co. Ltd.		139,845
	951	Samsung Life Insurance Co. Ltd.		86,168
	447	Samsung SDI Co. Ltd.		79,877
	787	Samsung Securities Co. Ltd.		65,654
	9,759	Shinhan Financial Group Co. Ltd.		478,092
	406	Shinsegae Co. Ltd.		102,291
	5,528	SK Holdings Co. Ltd.		990,413
	1,572	SK Innovation Co. Ltd.		340,320
	904	SK Telecom Co. Ltd.		137,078
	2,045	S-Oil Corp.		304,369
	2,830	STX Corp. Ltd.		70,509
	2,070	STX Offshore & Shipbuilding Co. Ltd.		61,039
	12,900	Woori Finance Holdings Co. Ltd.		175,748
				12,246,944
		Spain—4.5%
	6,022	Abertis Infraestructuras SA		142,903
	868	Acciona SA		101,141
	5,035	Acerinox SA		101,330
	5,896	ACS Actividades de Construccion y Servicios SA		297,102
	128,489	Banco Bilbao Vizcaya Argentaria SA		1,650,824
	50,885	Banco de Sabadell SA		225,951
	45,579	Banco Popular Espanol SA		273,730
	250,774	Banco Santander SA		3,207,801
	11,186	Bankinter SA		83,642
	20,953	Criteria Caixacorp SA		154,963
	2,189	Ebro Foods SA		54,121
	2,770	Enagas		68,650
	3,484	Endesa SA		121,649
	9,232	Ferrovial SA		127,557
	2,909	Fomento de Construcciones y Contratas SA		98,961
	7,793	Gamesa Corp. Tecnologica SA*		73,382
	10,117	Gas Natural SDG SA		208,333
	118,077	Iberdrola SA		1,098,373
	3,276	Indra Sistemas SA		74,459
	2,072	Industria de Diseno Textil SA		186,101
	24,136	International Consolidated Airlines Group SA*		95,894
	24,352	Mapfre SA		101,883
	1,508	Obrascon Huarte Lain SA		61,883
	35,481	Repsol YPF SA		1,269,141

See Notes to Financial Statements.

29

Schedule of Investments (Continued)

PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	4,163	Sacyr Vallehermoso SA*	$	52,702
	99,635	Telefonica SA		2,682,906
				12,615,382
		Sweden—3.0%
	4,197	Alfa Laval AB		94,212
	3,577	Assa Abloy AB, Class B		107,653
	5,733	Atlas Copco AB, Class A		168,735
	3,553	Atlas Copco AB, Class B		94,375
	1,192	Axfood AB		43,904
	4,124	Boliden AB*		93,189
	6,700	Electrolux AB, Series B		170,852
	2,461	Getinge AB, Class B		65,573
	15,824	Hennes & Mauritz AB, Class B		560,511
	1,994	Hexagon AB, Class B		51,939
	2,040	Holmen AB, Class B		75,475
	2,002	Husqvarna AB, Class A*		15,764
	6,557	Husqvarna AB, Class B		51,695
	4,224	Industrivarden AB, Class A		94,958
	1,851	Industrivarden AB, Class C		37,036
	15,361	Investor AB, Class B		383,554
	3,104	Kinnevik Investment AB, Class B		80,337
	758	Lundbergforetagen AB, Class B		60,125
	3,977	NCC AB, Class B		106,561
	71,518	Nordea Bank AB		818,125
	5,473	Peab AB		50,713
	1,885	Ratos AB, Class B		78,091
	2,413	Saab AB, Class B		54,646
	12,813	Sandvik AB		272,527
	22,466	SAS AB*		74,919
	593	Scania AB, Class A		15,289
	9,864	Scania AB, Class B		256,935
	9,948	Securitas AB, Class B		124,940
	37,529	Skandinaviska Enskilda Banken AB, Class A		361,754
	10,505	Skanska AB, Class B		226,225
	5,305	SKF AB, Class B		167,844
	6,077	SSAB AB, Class A		108,889
	2,841	SSAB AB, Class B		44,542
	18,624	Svenska Cellulosa AB, Class B		286,124
	10,549	Svenska Handelsbanken AB, Class A		367,012
	16,331	Swedbank AB, Class A		310,504
	1,670	Swedish Match AB		59,403
	7,226	Tele2 AB, Class B		181,867
	51,430	Telefonaktiebolaget LM Ericsson, Class B		782,875
	77,876	TeliaSonera AB		637,489
	5,015	Trelleborg AB, Class B		60,780
	11,349	Volvo AB, Class A		222,747
	24,302	Volvo AB, Class B		478,186
				8,398,874
		Switzerland—4.7%
	17,006	ABB Ltd.*		467,619

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	2,748	Adecco SA	$	195,393
	1,051	Aryzta AG		58,332
	1,284	Baloise Holding AG		141,418
	5,632	Clariant AG*		116,408
	3,525	Compagnie Financiere Richemont SA		226,896
	24,354	Credit Suisse Group AG		1,102,373
	2,387	GAM Holding AG*		46,863
	311	Geberit AG		72,517
	80	Givaudan SA*		88,618
	151	Helvetia Holding AG*		70,549
	5,234	Holcim Ltd.		453,820
	1,685	Julius Baer Group Ltd.*		78,424
	548	Kuehne + Nagel International AG		87,206
	1	Lindt & Spruengli AG*		37,072
	6	Lindt & Spruengli AG-Bearer*		19,828
	782	Lonza Group AG*		66,904
	37,059	Nestle SA		2,291,517
	31,302	Novartis AG		1,850,835
	883	Pargesa Holding SA		90,389
	6,136	Petroplus Holdings AG*		91,498
	7,222	Roche Holding AG		1,166,730
	260	Schindler Holding AG		33,321
	185	Schindler Holding AG Participant Certificates		23,837
	58	SGS SA		114,671
	359	Sulzer AG		64,446
	241	Swatch Group AG		118,079
	355	Swatch Group AG-Registered		31,373
	1,816	Swiss Life Holding AG*		329,973
	9,792	Swiss Reinsurance Co. Ltd.*		581,240
	347	Swisscom AG		158,586
	713	Syngenta AG		251,309
	318	Synthes, Inc.		54,559
	5,288	Transocean Ltd.*		386,043
	51,310	UBS AG*		1,021,533
	3,727	Zurich Financial Services AG*		1,042,848
				13,033,027
		United Kingdom—18.9%
	15,063	3i Group PLC		70,373
	3,354	AMEC PLC		67,132
	12,402	Amlin PLC		86,467
	14,687	Anglo American PLC		764,435
	3,302	Antofagasta PLC		75,289
	8,576	Associated British Foods PLC		144,045
	27,495	AstraZeneca PLC		1,371,223
	144,367	Aviva PLC		1,075,881
	86,085	BAE Systems PLC		470,817
	18,826	Balfour Beatty PLC		102,932
	363,598	Barclays PLC		1,712,047
	55,867	Barratt Developments PLC*		104,179

See Notes to Financial Statements.

30

Schedule of Investments (Continued)

PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	3,943	Bellway PLC	$	46,497
	26,177	BG Group PLC		669,556
	18,756	BHP Billiton PLC		789,767
	652,524	BP PLC		5,034,293
	23,568	British American Tobacco PLC		1,026,391
	14,946	British Land Co. PLC REIT		149,700
	12,710	British Sky Broadcasting Group PLC		178,501
	287,089	BT Group PLC		937,589
	6,645	Bunzl PLC		82,461
	2,443	Burberry Group PLC		52,769
	153,381	Cable & Wireless Communications PLC		118,706
	55,066	Cable & Wireless Worldwide PLC		44,169
	3,926	Capita Group PLC (The)		48,196
	12,992	Capital Shopping Centres Group PLC REIT		87,959
	10,346	Carillion PLC		67,577
	3,137	Carnival PLC		126,362
	98,705	Centrica PLC		528,314
	3,546	Close Brothers Group PLC		47,937
	15,764	Cobham PLC		59,976
	31,743	Compass Group PLC		309,468
	4,532	Cookson Group PLC*		54,086
	5,056	De La Rue PLC		66,833
	46,933	Debenhams PLC*		53,310
	30,492	Diageo PLC		619,465
	423,757	Dixons Retail PLC*		101,851
	11,820	Drax Group PLC		86,727
	8,563	easyJet PLC*		49,704
	9,869	Electrocomponents PLC		45,795
	44,178	Enterprise Inns PLC*		70,223
	3,940	Eurasian Natural Resources Corp. PLC		59,901
	8,075	Experian PLC		108,625
	19,733	FirstGroup PLC		106,871
	27,587	G4S PLC		127,090
	27,957	GKN PLC		103,987
	101,237	GlaxoSmithKline PLC		2,204,446
	6,490	Greene King PLC		52,999
	10,698	Hammerson PLC REIT		83,883
	30,436	Hays PLC		60,259
	8,629	Hiscox Ltd.		59,341
	43,181	Home Retail Group PLC		158,380
	372,122	HSBC Holdings PLC		4,067,945
	9,531	ICAP PLC		82,427
	4,103	IMI PLC		74,732
	16,095	Imperial Tobacco Group PLC		565,638
	15,308	Inchcape PLC*		93,042
	4,472	Inmarsat PLC		45,426
	2,313	InterContinental Hotels Group PLC		50,578
	8,330	Intermediate Capital Group PLC		45,850
	34,648	International Power PLC		191,058
	7,725	Invensys PLC		43,886
	11,805	Investec PLC		94,769

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	52,870	ITV PLC*	$	67,064
	58,099	J Sainsbury PLC		337,525
	4,223	Johnson Matthey PLC		141,086
	3,176	Kazakhmys PLC		73,051
	39,820	Kesa Electricals PLC		85,679
	63,151	Kingfisher PLC		289,138
	28,665	Ladbrokes PLC		72,770
	17,273	Land Securities Group PLC REIT		226,163
	171,177	Legal & General Group PLC		350,612
	977,354	Lloyds Banking Group PLC*		965,881
	41,147	Logica PLC		92,515
	2,436	Lonmin PLC		66,310
	42,141	Man Group PLC		175,512
	53,236	Marks & Spencer Group PLC		344,525
	10,275	Meggitt PLC		61,526
	19,134	Mitchells & Butlers PLC*		104,999
	9,930	Mondi PLC		98,051
	16,612	National Express Group PLC		72,844
	73,179	National Grid PLC		749,442
	3,702	Next PLC		138,129
	147,206	Old Mutual PLC		341,290
	14,222	Pearson PLC		273,036
	6,033	Pennon Group PLC		66,364
	13,055	Persimmon PLC		105,196
	98,612	Premier Foods PLC*		52,913
	51,510	Prudential PLC		664,132
	49,410	Punch Taverns PLC*		64,571
	6,839	Reckitt Benckiser Group PLC		379,173
	52,344	Rentokil Initial PLC*		82,287
	32,534	Resolution Ltd.		164,261
	23,955	Rexam PLC		156,067
	12,988	Rio Tinto PLC		944,522
	2,066,016	Rolls-Royce Group PLC, Class C*		3,446
	22,249	Rolls-Royce Group PLC*		238,062
	638,992	Royal Bank of Scotland Group PLC*		441,990
	98,553	Royal Dutch Shell PLC, Class A		3,817,762
	75,616	Royal Dutch Shell PLC, Class B		2,934,900
	109,369	RSA Insurance Group PLC		251,013
	12,215	SABMiller PLC		455,257
	18,836	Sage Group PLC (The)		89,540
	1,562	Schroders PLC		49,449
	555	Schroders PLC NVTG		14,321
	23,563	Scottish & Southern Energy PLC		533,720
	17,143	Segro PLC REIT		92,958
	6,355	Serco Group PLC		59,942
	5,247	Severn Trent PLC		131,364
	1,925	Shire PLC		59,400
	24,277	SIG PLC		56,609
	7,401	Smith & Nephew PLC		81,165
	5,301	Smiths Group PLC		117,773
	13,818	Stagecoach Group PLC		56,905

See Notes to Financial Statements.

31

Schedule of Investments (Continued)

PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	26,692	Standard Chartered PLC	$	738,603
	62,416	Standard Life PLC		235,386
	10,331	Tate & Lyle PLC		102,270
	153,475	Taylor Wimpey PLC*		99,605
	179,061	Tesco PLC		1,205,262
	45,582	Thomas Cook Group PLC		130,237
	4,834	Travis Perkins PLC		86,676
	31,717	TUI Travel PLC		126,543
	2,457	Tullow Oil PLC		58,727
	18,154	Unilever PLC		588,037
	8,244	United Business Media Ltd.		83,054
	22,884	United Utilities Group PLC		241,040
	2,076	Vedanta Resources PLC		80,507
	1,310,658	Vodafone Group PLC		3,751,370
	3,454	Whitbread PLC		96,787
	20,686	William Hill PLC		77,115
	63,580	William Morrison Supermarkets PLC		312,630
	7,795	Wolseley PLC		281,876
	22,327	WPP PLC		291,033
	21,653	Xstrata PLC		549,507
	410,857	Yell Group PLC*		48,861
				52,557,471
		Total Common Stocks and Other Equity Interests (Cost $228,448,616)		275,828,466
		Preferred Stocks—0.5%
		Germany—0.4%
	2,153	Henkel AG & Co. KGaA		146,869
	2,244	Porsche Automobil Holding SE		162,897
	4,227	Volkswagen AG*		834,067
				1,143,833
		Italy—0.1%
	725	EXOR SpA		22,502
	128,063	Unipol Gruppo Finanziario SpA		79,437
				101,939
		Total Preferred Stocks (Cost $796,187)		1,245,772

Number of Shares			Value
		Rights—0.0%
		Australia—0.0%
	252	Leighton Holdings Ltd., expiring 05/06/11*	$	491
		Portugal—0.0%
	155,919	Banco Comercial Portugues SA, expiring 05/05/11*		5,320
		Total Rights (Cost $0)		5,811
		Total Investments (Cost $229,244,803)—99.8%		277,080,049
		Other assets less liabilities—0.2%		568,241
		Net Assets—100.0%	$	277,648,290

Investment Abbreviations:

CVA—Dutch Certificate

NVTG—Non Voting

PPS—Price Protected Shares

REIT—Real Estate Investment Trust

Notes to Schedule of Investments:

*  Non-income producing security.

See Notes to Financial Statements.

32

Portfolio Composition

PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio

Sector Breakdown (% of the Fund's Net Assets) as of April 30, 2011 (Unaudited)

Industrials	23.3
Financials	19.5
Consumer Discretionary	18.0
Materials	12.3
Consumer Staples	7.7
Information Technology	7.6
Energy	4.3
Health Care	4.2
Utilities	2.1
Telecommunication Services	0.9
Other assets less liabilities	0.1

Schedule of Investments

PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—99.6%
		Australia—5.2%
	10,718	Abacus Property Group REIT	$	26,391
	15,883	Adelaide Brighton Ltd.		54,926
	11,624	Alesco Corp. Ltd.		41,469
	32,310	Alumina Ltd.		79,910
	3,498	Ansell Ltd.		53,325
	21,480	APA Group		99,903
	15,133	APN News & Media Ltd.		26,000
	16,967	Ardent Leisure Group REIT		25,716
	24,905	Aristocrat Leisure Ltd.		71,408
	16,639	Australand Property Group REIT		55,173
	21,092	AWE Ltd.*		36,008
	42,959	Beach Energy Ltd.		45,132
	8,123	Billabong International Ltd.		60,004
	12,919	Boart Longyear Group		64,610
	4,641	Bradken Ltd.		40,428
	13,643	Bwp Trust REIT		26,501
	1,129	Campbell Brothers Ltd.		55,920
	3,133	Cardno Ltd.		19,852
	72,295	Centro Retail Group REIT*		28,877
	12,081	Challenger Financial Services Group Ltd.		63,724
	9,598	Charter Hall Group REIT		25,944
	23,115	Charter Hall Office REIT		88,789
	12,255	Charter Hall Retail REIT		42,916
	755	Cochlear Ltd.		66,528
	88,798	Commonwealth Property Office Fund REIT		88,916
	107,543	ConnectEast Group		55,314
	6,532	Consolidated Media Holdings Ltd.		19,944
	5,716	Crane Group Ltd.		64,306
	10,656	Crown Ltd.		98,305
	20,704	David Jones Ltd.		105,584

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	25,442	Downer EDI Ltd.	$	103,018
	109,399	Elders Ltd.*		61,058
	29,684	Emeco Holdings Ltd.		35,571
	2,009	Energy Resources of Australia Ltd.		11,982
	56,287	Envestra Ltd.		39,423
	58,922	Fairfax Media Ltd.		85,115
	33,825	FKP Property Group		28,873
	1,670	Fleetwood Corp. Ltd.		20,304
	1,759	Flight Centre Ltd.		45,256
	4,517	Fortescue Metals Group Ltd.		30,401
	6,705	GrainCorp Ltd.		57,380
	3,078	Gud Holdings Ltd.		31,596
	93,585	Gunns Ltd.*		53,768
	13,022	GWA International Ltd.		45,602
	25,423	Harvey Norman Holdings Ltd.		74,562
	19,865	Hills Industries Ltd.		34,131
	4,680	Iluka Resources Ltd.		64,071
	130,936	Infigen Energy		63,764
	109,187	Investa Office Fund REIT		75,278
	3,833	IOOF Holdings Ltd.		30,034
	2,148	Iress Market Technology Ltd.		21,485
	2,323	JB Hi-Fi Ltd.		48,073
	26,689	Kagara Ltd.*		17,232
	3,624	Macarthur Coal Ltd.		46,005
	42,884	Macmahon Holdings Ltd.		24,638
	65,385	Minara Resources Ltd.*		55,097
	2,064	Monadelphous Group Ltd.		43,368
	20,123	Mount Gibson Iron Ltd.*		41,401
	6,445	New Hope Corp. Ltd.		34,560
	11,659	Nufarm Ltd.*		61,626
	62,529	OZ Minerals Ltd.		98,536

See Notes to Financial Statements.

33

Schedule of Investments (Continued)

PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	83,997	Pacific Brands Ltd.*	$	67,103
	5,064	Paladin Energy Ltd.*		18,288
	124,265	PaperlinX Ltd.*		39,437
	2,041	Perpetual Ltd.		64,527
	4,293	Platinum Asset Management Ltd.		21,705
	4,553	Premier Investments Ltd.		29,895
	20,918	Primary Health Care Ltd.		79,435
	13,184	Programmed Maintenance Services Ltd.		27,413
	3,753	Ramsay Health Care Ltd.		74,297
	4,391	Seek Ltd.		33,397
	3,589	Seven Group Holdings Ltd.		35,820
	122,826	Sigma Pharmaceuticals Ltd.*		49,733
	76,364	SP Ausnet		73,123
	27,553	Spotless Group Ltd.		59,099
	14,942	Stw Communications Group Ltd.		18,968
	36,723	Ten Network Holdings Ltd.		54,254
	9,068	Tower Australia Group Ltd.		39,694
	17,831	Transfield Services Ltd.		69,272
	5,514	UGL Ltd.		90,996
	202,729	Virgin Blue Holdings Ltd.*		63,229
	8,126	Westfield Retail Trust REIT		23,566
				4,148,282
		Austria—0.9%
	1,090	Andritz AG		112,730
	3,986	CA Immobilien Anlagen AG*		78,621
	3,460	Conwert Immobilien Invest SE		60,932
	610	Flughafen Wien AG		38,462
	359	Mayr-Melnhof Karton AG		43,674
	2,510	Oesterreichische Post AG		91,011
	1,319	RHI AG*		47,200
	243	Schoeller-Bleckmann Oilfield Equipment AG		24,652
	606	Semperit AG Holding		35,490
	3,082	Sparkassen Immobilien AG*		23,553
	3,556	Strabag SE		119,600
	1,797	Verbund AG		81,381
				757,306
		Belgium—1.2%
	852	Ackermans & van Haaren NV		89,291
	9	Banque Nationale de Belgique		46,733
	390	Barco NV*		34,132
	694	Befimmo SCA Sicafi REIT		64,506
	617	Cie d'Entreprises CFE		53,550
	920	Cie Maritime Belge SA		28,841
	608	Cofinimmo REIT*		93,720
	2,220	Euronav NV		37,382
	303	Evs Broadcast Equipment SA		20,791
	392	Gimv NV		26,031
	1,089	Mobistar SA		80,927
	5,852	Nyrstar		80,917
	878	Omega Pharma SA		45,070

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	6,466	RHJ International*	$	53,817
	674	Sofina SA		70,166
	1,713	Telenet Group Holding NV*		85,302
	2,267	Tessenderlo Chemie NV		90,406
				1,001,582
		Bermuda—0.7%
	9,182	Aquarius Platinum Ltd.		52,715
	11,209	BW Offshore Ltd.*		29,097
	22,000	China Yurun Food Group Ltd.		80,578
	130,000	Citic Resources Holdings Ltd.*		32,133
	780	Dockwise Ltd.*		22,630
	36,926	Golden Ocean Group Ltd.		45,285
	9,608	Lancashire Holdings Ltd.		103,366
	44,000	Midland Holdings Ltd.		33,931
	165,000	Mongolia Energy Co. Ltd.*		38,873
	6,000	Ports Design Ltd.		16,530
	278,000	Samling Global Ltd.		38,295
	82,000	Skyworth Digital Holdings Ltd.		52,256
	308,000	Sre Group Ltd.		27,756
				573,445
		Canada—7.3%
	12,737	Advantage Oil & Gas Ltd.*		107,926
	3,595	Aecon Group, Inc.		35,463
	4,522	AGF Management Ltd., Class B		94,362
	1,222	Agnico-Eagle Mines Ltd.		84,897
	1,164	Allied Properties Real Estate Investment Trust REIT		28,399
	3,969	Altagas Ltd.		106,163
	1,393	Artis Real Estate Investment Trust REIT		20,113
	1,504	Astral Media, Inc.		58,347
	2,861	Atlantic Power Corp.		43,269
	3,717	Ats Automation Tooling Systems, Inc.*		26,834
	1,844	Birchcliff Energy Ltd.*		25,420
	1,004	Boardwalk REIT		51,002
	5,402	CAE, Inc.		72,588
	2,939	Calloway REIT		77,528
	1,844	Canaccord Financial, Inc.		27,791
	1,827	Canadian REIT		64,504
	2,396	Canadian Apartment Properties REIT		48,104
	1,537	Canadian Western Bank		49,098
	5,488	Canfor Corp.*		72,067
	10,657	Cascades, Inc.		77,497
	1,330	CCL Industries, Inc., Class B		44,364
	1,943	Centerra Gold, Inc.		36,040
	6,049	Chartwell Seniors Housing REIT		56,611
	5,168	CML Healthcare, Inc.		55,610
	930	Cogeco Cable, Inc.		44,498
	1,890	Cominar REIT		45,295
	15,461	Connacher Oil And Gas Ltd.*		21,835
	1,238	Consolidated Thompson Iron Mines Ltd.*		22,337

See Notes to Financial Statements.

34

Schedule of Investments (Continued)

PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	855	Corus Entertainment, Inc., Class B	$	17,923
	6,465	Cott Corp.*		57,438
	1,166	Crew Energy, Inc.*		20,092
	6,626	Daylight Energy Ltd.		75,837
	5,083	Denison Mines Corp.*		11,785
	1,604	Dollarama, Inc.*		50,122
	1,770	Dorel Industries, Inc., Class B		58,686
	962	Dundee REIT		33,508
	2,651	Dundee Corp., Class A*		68,451
	4,791	Eldorado Gold Corp.		88,918
	5,761	Ensign Energy Services, Inc.		110,927
	3,927	Equinox Minerals Ltd.*		33,523
	5,863	Extendicare REIT		73,469
	6,567	Fairborne Energy Ltd.*		33,152
	1,908	First Capital Realty, Inc.		33,099
	1,027	FirstService Corp.*		39,268
	2,033	Flint Energy Services Ltd.*		30,832
	1,694	Forzani Group Ltd. (The), Class A		33,350
	1,533	Franco-Nevada Corp.		60,619
	7,448	Galleon Energy, Inc., Class A*		27,473
	2,858	Gammon Gold, Inc.*		31,175
	1,840	Genworth MI Canada, Inc.		50,263
	2,204	Gildan Activewear, Inc.*		81,856
	3,404	GMP Capital, Inc.		54,243
	6,426	Golden Star Resources Ltd.*		20,724
	3,073	Great Canadian Gaming Corp.*		25,359
	3,348	Harry Winston Diamond Corp.*		56,809
	559	Home Capital Group, Inc.		33,581
	4,971	HudBay Minerals, Inc.		79,109
	3,839	IAMGOLD Corp.		79,584
	3,169	IESI-BFC Ltd.		80,189
	1,183	Inmet Mining Corp.		82,786
	6,937	InnVest REIT		52,493
	6,144	Jean Coutu Group PJC, Inc. (The), Class A		67,990
	5,158	Lake Shore Gold Corp.*		22,070
	1,139	Laurentian Bank of Canada		60,344
	3,044	Linamar Corp.		68,108
	11,763	Lundin Mining Corp.*		114,796
	852	MacDonald Dettwiler & Associates Ltd.*		51,191
	1,265	Major Drilling Group International		21,011
	3,261	Manitoba Telecom Services, Inc.		103,619
	6,303	Maple Leaf Foods, Inc.		78,252
	4,060	Martinrea International, Inc.*		36,456
	1,578	Meg Energy Corp.*		83,087
	1,721	Morguard REIT		27,370
	4,286	Mullen Group Ltd.		95,852
	5,173	New Gold, Inc.*		57,953
	403	Niko Resources Ltd.		33,957
	1,560	Norbord, Inc.*		21,801
	11,616	Northgate Minerals Corp.*		34,645
	3,668	Nuvista Energy Ltd.		36,956
	980	Open Text Corp.*		59,863

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	118,078	OPTI Canada, Inc.*	$	29,866
	1,538	Osisko Mining Corp.*		22,450
	1,616	Pacific Rubiales Energy Corp.		48,965
	1,344	Pan American Silver Corp.		48,343
	1,712	Petrobakken Energy Ltd., Class A		32,405
	3,282	Petrobank Energy & Resources Ltd.*		69,248
	682	Petrominerales Ltd.		26,026
	2,235	Primaris Retail REIT		48,994
	6,627	Progress Energy Resources Corp.		90,376
	3,460	Quadra FNX Mining Ltd.*		56,630
	2,339	Reitmans (Canada) Ltd., Class A		43,016
	1,668	Ritchie Bros Auctioneers, Inc.		52,140
	3,756	Russel Metals, Inc.		102,920
	2,970	Savanna Energy Services Corp.*		32,271
	1,085	ShawCor Ltd., Class A		38,719
	1,355	Silver Wheaton Corp.*		54,980
	1,349	Stantec, Inc.*		42,396
	507	Sxc Health Solutions Corp.		27,940
	4,434	Thompson Creek Metals Co., Inc.*		54,347
	2,210	Tim Hortons, Inc.		107,210
	1,896	TMX Group, Inc.		81,047
	2,099	Toromont Industries Ltd.		72,935
	2,908	Torstar Corp., Class B		42,845
	4,371	Transcontinental, Inc., Class A		67,165
	6,649	TransForce, Inc.		98,735
	1,721	Trican Well Service Ltd.		42,297
	1,716	Trilogy Energy Corp.		41,216
	8,215	Trinidad Drilling Ltd.		93,851
	3,445	Uranium One, Inc.		14,305
	1,355	West Fraser Timber Co. Ltd.		76,828
				5,920,392
		Cayman Islands—1.0%
	14,000	Aac Acoustic Technologies Holdings, Inc.		36,588
	22,000	Anta Sports Products Ltd.		35,573
	50,000	Belle International Holdings Ltd.		97,585
	86,000	Bosideng International Holdings Ltd.		27,236
	44,000	China Shanshui Cement Group Ltd.		49,282
	123,600	China Zhongwang Holdings Ltd.		63,490
	38,000	GCL Poly Energy Holdings Ltd.*		27,151
	75,000	Geely Automobile Holdings Ltd.		30,029
	70,000	Hutchison Telecommunications Hong Kong Holdings Ltd.		22,079
	58,000	Ju Teng International Holdings Ltd.		19,115
	32,500	KWG Property Holding Ltd.		23,473
	21,000	Li Ning Co. Ltd.		35,957
	24,000	Minth Group Ltd.		36,892
	222,000	Renhe Commercial Holdings Co. Ltd.		38,011
	27,600	Sands China Ltd.*		77,460
	91,000	Want Want China Holdings Ltd.		81,656
	20,000	Xinao Gas Holdings Ltd.		68,490
				770,067

See Notes to Financial Statements.

35

Schedule of Investments (Continued)

PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
		China—1.0%
	47,405	Agile Property Holdings Ltd.	$	77,018
	33,000	BYD Electronic International Co. Ltd.		17,673
	99,000	China Dongxiang Group Co.		34,540
	26,000	China High Speed Transmission Equipment Group Co. Ltd.		34,410
	121,000	Country Garden Holdings Co.		49,069
	91,000	Fosun International		71,815
	37,500	Greentown China Holdings Ltd.		37,560
	41,500	Kingboard Laminates Holdings Ltd.		36,758
	42,000	Nine Dragons Paper Holdings Ltd.		47,961
	1,268,000	Semiconductor Manufacturing International Corp.*		114,270
	41,500	Shimao Property Holdings Ltd.		56,419
	123,150	Shui On Land Ltd.		54,539
	59,000	Soho China Ltd.		50,967
	7,500	Stella International Holdings Ltd.		17,032
	2,300	Tencent Holdings Ltd.		65,438
	22,000	Yangzijiang Shipbuilding Holdings Ltd.		32,579
	20,000	Yanlord Land Group Ltd.		23,727
				821,775
		Cyprus—0.1%
	6,613	Songa Offshore SE*		40,518
		Denmark—1.2%
	392	Alk-Abello A/S		23,863
	1,420	Bang & Olufsen A/S*		22,317
	431	Coloplast A/S, Class B		63,449
	803	D/S Norden A/S		28,819
	1,995	East Asiatic Co. Ltd. A/S		66,478
	4,041	GN Store Nord A/S*		40,156
	1,899	H. Lundbeck A/S		45,675
	907	NKT Holding A/S		55,918
	640	Novozymes A/S, Class B		110,770
	186	Rockwool International A/S, Class B		24,625
	251	Simcorp A/S		45,689
	3,453	Sydbank A/S*		100,293
	663	Topdanmark A/S*		122,004
	7,645	Torm A/S*		49,931
	1,741	Trygvesta AS		111,353
	219	William Demant Holding*		20,451
				931,791
		Finland—1.5%
	6,108	Amer Sports Oyj, Class A		100,314
	1,868	Cargotec Corp., Class B		104,923
	5,862	Citycon Oyj		27,830
	913	Cramo Oyj*		24,232
	3,527	Finnair Oyj*		19,047
	3,615	HKScan Oyj, Class A		36,148
	4,628	Kemira Oyj		84,796

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	1,912	Konecranes Oyj	$	92,106
	1,598	Lassila & Tikanoja Oyj		30,560
	21,301	M-real Oyj, Class B*		100,811
	6,485	Oriola-KD Oyj, Class B		28,286
	4,236	Orion Oyj, Class B		105,454
	2,311	Poyry Oyj		39,429
	2,483	Ramirent Oyj		42,364
	3,112	Sanoma Oyj		64,776
	11,633	Sponda Oyj		68,690
	1,328	Stockmann Oyj Abp, Class B		40,823
	5,122	Tieto Oyj		94,608
	5,216	Uponor Oyj		101,916
				1,207,113
		France—3.9%
	991	Aeroports de Paris		95,125
	831	Alten Ltd.		34,144
	8,727	Altran Technologies SA*		69,011
	1,137	Beneteau SA		24,443
	375	bioMerieux		40,864
	176	Bollore		44,337
	322	Bonduelle SCA		32,647
	4,846	Bull*		32,281
	950	Bureau Veritas SA		82,099
	3,224	Canal +		26,403
	2,368	Cfao SA		95,382
	670	Ciments Francais SA		70,933
	2,172	Club Mediterranee SA*		50,704
	846	Dassault Systemes SA		68,932
	6,595	Derichebourg SA*		62,571
	3,181	Edenred*		98,823
	519	EDF Energies Nouvelles SA		30,923
	4,329	Etablissements Maurel et Prom		92,420
	677	Euler Hermes SA*		72,286
	1,626	Eutelsat Communications		70,259
	793	Gecina SA REIT		114,531
	1,468	Groupe Steria SCA		48,796
	16,181	Havas SA		92,424
	379	Hermes International		88,953
	798	ICADE REIT		102,539
	182	Iliad SA		23,435
	489	Ingenico		24,307
	616	Ipsen SA		24,163
	768	Ipsos		39,993
	1,668	JC Decaux SA*		58,377
	634	Manitou BF SA*		21,474
	1,216	Medica SA*		25,131
	991	Mercialys SA REIT		42,931
	784	Mersen		47,735
	1,763	Nexity		95,991
	322	Pierre & Vacances		28,773

See Notes to Financial Statements.

36

Schedule of Investments (Continued)

PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	585	Plastic Omnium SA	$	56,154
	589	Remy Cointreau SA		48,620
	483	Rubis		59,476
	642	SA des Ciments Vicat*		58,701
	963	Saft Groupe SA		44,290
	749	SEB SA		82,475
	232	Seche Environnement SA		22,204
	1,429	Sechilienne-Sidec		41,871
	2,338	Sequana		40,150
	1,223	Societe BIC SA		119,099
	318	Societe de La Tour Eiffel REIT		31,949
	472	Societe Fonciere Financiere et de Participations		39,194
	416	Societe Immobiliere de Location pour l'Industrie et le Commerce REIT		62,489
	2,408	SOITEC*		39,173
	215	Sopra Group SA		25,342
	10,356	Technicolor*		79,310
	2,467	Teleperformance		94,301
	7,292	UbiSoft Entertainment SA*		73,327
	167	Vilmorin & Cie		21,184
	133	Virbac SA		24,567
				3,138,016
		Germany—3.5%
	2,729	Aareal Bank AG*		82,878
	8,796	Air Berlin PLC*		39,358
	534	Aixtron SE		22,817
	564	Axel Springer AG		92,545
	830	Bauer AG		44,742
	1,854	BayWa AG		87,607
	914	Bechtle AG		43,596
	688	Brenntag AG*		84,720
	744	Demag Cranes AG*		40,062
	880	Deutsche Beteiligungs AG		25,889
	1,483	Deutsche Euroshop AG		60,021
	2,656	Deutsche Wohnen AG*		41,907
	6,281	Deutz AG*		57,579
	1,854	DIC Asset AG		25,030
	616	ElringKlinger AG		21,646
	293	Fielmann AG		31,237
	1,357	Fraport AG		108,775
	278	Fuchs Petrolub AG		40,304
	391	Gerry Weber International AG		25,524
	2,522	Gildemeister AG		64,077
	1,044	H&R Wasag AG		32,759
	843	Hamburger Hafen und Logistik AG		40,960
	19,009	Heidelberger Druckmaschinen AG*		84,973
	5,889	IVG Immobilien AG*		49,774
	2,738	Jenoptik AG*		22,516
	1,393	Kabel Deutschland Holding AG*		87,203

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	2,102	Kloeckner & Co. SE*	$	75,718
	2,259	Kontron AG		27,894
	623	Krones AG*		50,512
	29	Ksb AG		25,623
	1,372	KUKA AG*		37,535
	1,822	Leoni AG*		100,299
	1,490	Medion AG		21,553
	1,501	MTU Aero Engines Holding AG		115,241
	203	Pfeiffer Vacuum Technology AG		28,159
	13,011	Pfleiderer AG*		13,531
	194	Puma AG Rudolf Dassler Sport		64,759
	8,650	Q-Cells SE*		36,895
	565	Rheinmetall AG		50,763
	2,769	Rhoen Klinikum AG		63,449
	2,573	SGL Carbon SE*		137,423
	817	Sixt AG		41,187
	7,595	Sky Deutschland AG		33,533
	346	Software AG		65,577
	4,316	Solarworld AG		69,379
	2,475	Stada Arzneimittel AG		109,698
	3,215	Suedzucker AG		99,331
	2,341	United Internet AG		45,949
	351	Vossloh AG		50,543
	453	Wacker Chemie AG		112,437
				2,835,487
		Gibraltar—0.1%
	21,097	Bwin.Party Digital Entertainment PLC*		53,663
		Greece—0.7%
	36,956	Alapis Holding Industrial and Commercial SA		9,869
	8,644	Ellaktor SA		39,242
	3,276	Hellenic Exchanges SA Holding Clearing Settlement And Registry		26,245
	5,253	Hellenic Petroleum SA		56,112
	12,616	Intralot SA-Integrated Lottery Systems & Services		45,108
	4,577	JUMBO SA		37,008
	57,012	Marfin Investment Group SA*		60,054
	6,017	Motor Oil (Hellas) Corinth Refineries SA		79,895
	6,813	Mytilineos Holdings SA*		54,380
	2,725	Titan Cement Co. SA		72,771
	5,441	TT Hellenic Postbank SA*		23,410
	5,354	Viohalco*		31,773
				535,867
		Hong Kong—3.8%
	3,912	ASM Pacific Technology Ltd.		52,579
	22,935	Cafe de Coral Holdings Ltd.		53,325
	90,213	Champion REIT		52,263
	11,000	Cheung Kong Infrastructure Holdings Ltd.		53,601

See Notes to Financial Statements.

37

Schedule of Investments (Continued)

PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	60,000	China Gas Holdings Ltd.	$	23,482
	672,000	China Grand Forestry Green Resources Group Ltd.*		20,504
	26,134	China Mengniu Dairy Co. Ltd.		80,243
	133,799	China Travel International Investment Hong Kong Ltd.*		27,388
	20,500	Chinese Estates Holdings Ltd.		38,849
	36,000	Dah Chong Hong Holdings Ltd.		41,156
	13,298	Dah Sing Banking Group Ltd.		21,503
	8,527	Dah Sing Financial Holdings Ltd.		53,406
	35,710	Digital China Holdings Ltd.		69,419
	137,328	First Pacific Co. Ltd.		129,061
	134,000	Foxconn International Holdings Ltd.*		79,011
	36,000	Fushan International Energy Group Ltd.		25,259
	87,315	Giordano International Ltd.		63,062
	218,490	Global Bio-Chem Technology Group Co. Ltd.*		53,163
	293,760	GOME Electrical Appliances Holdings Ltd.*		105,514
	22,000	Great Eagle Holdings Ltd.		78,170
	6,000	Guoco Group Ltd.		75,429
	11,888	Hengan International Group Co. Ltd.		92,746
	45,378	HKR International Ltd.		26,464
	3,329	Hong Kong Aircraft Engineering Co. Ltd.		49,287
	15,861	Hongkong & Shanghai Hotels Ltd. (The)		27,934
	36,604	Hopewell Highway Infrastructure Ltd.		23,750
	21,715	Hopewell Holdings Ltd.		65,557
	50,206	Hopson Development Holdings Ltd.*		49,511
	25,000	Hysan Development Co. Ltd.		116,670
	73,083	Johnson Electric Holdings Ltd.		44,785
	36,000	K Wah International Holdings Ltd.		14,275
	15,313	Kowloon Development Co. Ltd.		20,108
	42,000	Lee & Man Paper Manufacturing Ltd.		30,171
	6,000	Lifestyle International Holdings Ltd.		17,148
	93,200	New World China Land Ltd.		33,476
	46,000	NWS Holdings Ltd.		67,748
	44,000	Shangri-La Asia Ltd.		122,637
	96,174	Shun Tak Holdings Ltd.		59,926
	68,000	Singamas Container Holdings Ltd.*		31,165
	73,000	SJM Holdings Ltd.		157,322
	13,500	SmarTone Telecommunications Holding Ltd.		20,891
	57,818	Techtronic Industries Co.		78,901
	15,025	Television Broadcasts Ltd.		88,011
	36,857	Texwinca Holdings Ltd.		41,566
	40,000	Tingyi (Cayman Islands) Holding Corp.		106,082
	118,000	TPV Technology Ltd.		67,753
	42,000	Vitasoy International Holdings Ltd.		36,065
	9,070	VTech Holdings Ltd.		103,339
	31,000	Wheelock & Co. Ltd.		127,709
	7,925	Wing Hang Bank Ltd.		88,355
	44,000	Xinyi Glass Holdings Co. Ltd.		53,020
				3,058,759

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
		Ireland—0.6%
	19,343	Aer Lingus Group PLC*	$	23,675
	14,649	C&C Group PLC		75,197
	4,075	Elan Corp. PLC*		32,465
	6,012	Glanbia PLC		38,844
	13,038	Grafton Group PLC		68,668
	24,250	Greencore Group PLC		39,576
	34,264	Independent News & Media PLC*		29,738
	51,939	Irish Life & Permanent Group Holdings PLC*		11,559
	9,972	James Hardie Industries SE*		64,386
	5,339	Kingspan Group PLC		52,278
	780	Paddy Power PLC		38,188
	10,725	United Drug PLC		37,026
				511,600
		Israel—1.2%
	3,343	Clal Industries Ltd.		26,663
	722	Clal Insurance Enterprise Holdings Ltd.		20,434
	186	Delek Group Ltd.		49,577
	90,451	Delek Real Estate Ltd.*		16,914
	4,917	Discount Investment Corp.		100,120
	742	Elbit Systems Ltd.		42,111
	2,765	Gazit-Globe Ltd.		37,827
	345	Harel Insurance Investments & Financial Services Ltd.		20,573
	867	IDB Holding Corp. Ltd.		26,507
	76	Israel Corp. Ltd. (The)		94,408
	44,630	Israel Discount Bank Ltd., Class A*		94,320
	11,762	Makhteshim-Agan Industries Ltd.*		63,506
	13,723	Migdal Insurance & Financial Holding Ltd.		25,906
	4,286	Mizrahi Tefahot Bank Ltd.		47,491
	1,266	NICE Systems Ltd.*		48,100
	111,355	Oil Refineries Ltd.*		83,094
	4,667	Partner Communications Co. Ltd.		86,580
	190	Paz Oil Co. Ltd.		35,220
	4,956	Shufersal Ltd.		30,966
	1,450	Strauss Group Ltd.		24,240
				974,557
		Italy—3.0%
	6,090	ACEA SpA*		78,741
	2,391	Ansaldo STS SpA		36,998
	14,403	Arnoldo Mondadori Editore SpA*		61,114
	3,522	Astaldi SpA		30,777
	6,743	Autogrill SpA*		96,788
	3,151	Autostrada Torino-Milano SpA		53,106
	2,563	Azimut Holding SpA		32,815
	9,154	Benetton Group SpA*		74,423
	52,767	Beni Stabili SpA REIT		59,810
	1,820	Brembo SpA		24,895
	4,565	Bulgari SpA		83,235
	6,690	Cementir Holding SpA		21,538

See Notes to Financial Statements.

38

Schedule of Investments (Continued)

PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	36,761	CIR-Compagnie Industriali Riunite SpA*	$	96,533
	7,292	Credito Emiliano SpA		50,327
	1,959	Danieli & C Officine Meccaniche Spa-RSP		35,139
	767	Danieli SpA		24,465
	6,891	Davide Campari-Milano SpA		49,707
	2,192	de'longhi SpA		28,065
	55,569	Edison SpA*		68,963
	3,234	Esprinet SpA		27,924
	39,538	Gemina SpA*		41,032
	4,224	Geox SpA		29,905
	11,806	Gruppo Editoriale L'Espresso SpA*		36,712
	44,313	Hera SpA		112,223
	18,579	Immsi SpA		24,146
	31,130	Impregilo SpA*		107,056
	4,098	Indesit Co. SpA		54,080
	3,027	Interpump Group SpA*		27,394
	37,190	Iren SpA		76,914
	646	Italmobiliare SpA		28,302
	1,565	Italmobiliare SpA RSP		42,954
	4,535	Lottomatica SpA		101,460
	6,906	Maire Tecnimont SpA		28,995
	1,893	Marr SpA		24,897
	14,399	Mediolanum SpA		84,766
	50,764	Milano Assicurazioni SpA*		75,012
	8,863	Piaggio & C. SpA		34,714
	69,529	Prelios SpA*		54,620
	3,623	Recordati SpA		38,405
	2,634	Safilo Group SpA*		50,372
	492,432	Seat Pagine Gialle SpA*		59,176
	2,786	Societa' Cattolica di Assicurazioni Scrl		78,492
	3,214	Societa Iniziative Autostradali e Servizi SpA		41,460
	12,484	Sorin SpA*		35,931
	215,369	Tiscali SpA*		25,274
	274	Tod's SpA		37,256
	1,484	Trevi Finanziaria SpA		24,174
				2,411,085
		Japan—33.4%
	19,000	77 Bank Ltd. (The)		87,343
	43	Accordia Golf Co. Ltd.		27,345
	4,810	Acom Co. Ltd.*		70,070
	4,500	ADEKA Corp.		44,312
	4,100	Advantest Corp.		80,696
	3,800	AEON Credit Service Co. Ltd.		51,329
	1,900	AEON Mall Co. Ltd.		45,147
	2,200	Aica Kogyo Co. Ltd.		28,876
	700	Aichi Bank Ltd. (The)		41,626
	7,000	Aichi Steel Corp.		42,014
	9,000	Air Water, Inc.		108,146
	5,500	Akebono Brake Industry Co. Ltd.		28,808
	13,000	Akita Bank Ltd. (The)		38,132

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	2,000	Alpen Co. Ltd.	$	32,684
	1,800	Alpine Electronics, Inc.		22,472
	4,200	Amano Corp.		38,718
	4,000	Anritsu Corp.		31,649
	6,500	AOC Holdings, Inc.*		42,698
	700	AOKI Holdings, Inc.		10,689
	15,000	Aomori Bank Ltd. (The)		45,662
	4,200	Aoyama Trading Co. Ltd.		69,103
	21,000	Aozora Bank Ltd.		45,292
	1,600	Arcs Co. Ltd.		24,747
	1,800	Asatsu-DK, Inc.		46,919
	7,000	Asics Corp.		100,763
	2,300	Autobacs Seven Co. Ltd.		84,160
	15,000	Awa Bank Ltd. (The)		93,357
	8,000	Bando Chemical Industries Ltd.		33,424
	1,300	Bank of Iwate Ltd. (The)		49,106
	20,000	Bank of Nagoya Ltd. (The)		63,101
	1,400	Bank of Okinawa Ltd. (The)		55,731
	2,000	Bank of The Ryukyus Ltd.		23,441
	5,500	Best Denki Co. Ltd.*		14,777
	70	BIC Camera, Inc.		31,920
	14,000	Calsonic Kansei Corp.*		56,594
	1,200	Canon Electronics, Inc.		28,691
	7,100	Canon Marketing Japan, Inc.		78,490
	1,700	Capcom Co. Ltd.		31,406
	2,000	Cawachi Ltd.		38,008
	21,000	Central Glass Co. Ltd.		82,562
	2,100	Century Tokyo Leasing Corp.		35,923
	1,300	Chiyoda Co. Ltd.		17,207
	11,000	Chiyoda Corp.		108,727
	1,800	Chofu Seisakusho Co. Ltd.		43,680
	1,400	Chudenko Corp.		17,220
	5,000	Chugoku Marine Paints Ltd.		42,149
	2,900	Circle K Sunkus Co. Ltd.		44,390
	13,500	Citizen Holdings Co. Ltd.		81,193
	1,600	CKD Corp.		14,395
	4,300	CMK Corp.		17,594
	1,200	Coca-Cola Central Japan Co. Ltd.		16,327
	4,300	Coca-Cola West Co. Ltd.		88,660
	1,400	Cocokara Fine, Inc.		29,850
	6,700	COMSYS Holdings Corp.		69,857
	6,500	CSK Holdings Corp.*		20,588
	2,500	Daibiru Corp.		19,781
	18,000	Daido Steel Co. Ltd.		102,267
	22,350	Daiei, Inc. (The)*		77,677
	11,000	Daifuku Co. Ltd.		74,020
	9,000	Daihen Corp.		35,938
	11,000	Daikyo, Inc.*		17,488
	8,000	Dainippon Screen Manufacturing Co. Ltd.		73,453
	6,500	Dainippon Sumitomo Pharma Co. Ltd.		62,004
	12,000	Daio Paper Corp.		86,221

See Notes to Financial Statements.

39

Schedule of Investments (Continued)

PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	23,000	Daishi Bank Ltd. (The)	$	71,999
	17,000	Daiwabo Holdings Co. Ltd.		34,360
	7,300	DCM Holdings Co. Ltd.		46,423
	8,000	Denki Kogyo Co. Ltd.		38,058
	600	Disco Corp.		40,670
	2,200	Don Quijote Co. Ltd.		81,748
	2,700	Doutor Nichires Holdings Co. Ltd.		32,111
	4,300	Duskin Co. Ltd.		86,647
	41	eAccess Ltd.		19,201
	1,200	Earth Chemical Co. Ltd.		40,108
	19,000	Ebara Corp.*		106,544
	11,000	Ehime Bank Ltd. (The)		30,774
	10,000	Eighteenth Bank Ltd. (The)		26,990
	1,800	EXEDY Corp.		57,123
	6,000	Ezaki Glico Co. Ltd.		71,358
	2,900	FamilyMart Co. Ltd.		104,506
	2,000	Fancl Corp.		27,409
	1,400	FCC Co. Ltd.		32,817
	1,200	Foster Electric Co. Ltd.		27,552
	1,100	FP Corp.		63,175
	1,900	Fuji Co. Ltd.		39,152
	46	Fuji Media Holdings, Inc.		61,057
	4,300	Fuji Oil Co. Ltd.		59,566
	3,200	Fuji Soft, Inc.		48,745
	9,000	Fujitec Co. Ltd.		45,921
	14,000	Fukui Bank Ltd. (The)		42,273
	12,000	Fukuyama Transporting Co. Ltd.		57,678
	1,400	Funai Electric Co. Ltd.		42,445
	33,000	Furukawa Co. Ltd.*		36,603
	13,000	Furukawa-Sky Aluminum Corp.		37,010
	1,500	Futaba Corp.		27,859
	9,900	Futaba Industrial Co. Ltd.*		56,491
	1,600	Fuyo General Lease Co. Ltd.		49,495
	32	Geo Corp.		36,914
	2,100	Glory Ltd.		46,069
	20,000	Godo Steel Ltd.		51,023
	720	Goldcrest Co. Ltd.		11,899
	14,000	GS Yuasa Corp.		95,243
	19,000	Gunze Ltd.		68,376
	13,000	H2O Retailing Corp.		94,047
	1,900	Hamamatsu Photonics KK		74,347
	2,200	Heiwa Corp.		33,756
	12,000	Heiwa Real Estate Co. Ltd.		26,769
	2,100	Heiwado Co. Ltd.		26,425
	12,000	Higashi-Nippon Bank Ltd. (The)		24,254
	17,000	Higo Bank Ltd. (The)		97,633
	1,800	Hikari Tsushin, Inc.		35,161
	23,000	Hino Motors Ltd.		107,998
	1,000	Hirose Electric Co. Ltd.		103,526
	25,000	Hiroshima Bank Ltd. (The)		108,762
	2,200	HIS Co. Ltd.		52,573

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	2,000	Hisamitsu Pharmaceutical Co., Inc.	$	83,066
	22,000	Hitachi Cable Ltd.		52,329
	2,300	Hitachi Capital Corp.		32,626
	5,000	Hitachi Chemical Co. Ltd.		102,416
	4,900	Hitachi Construction Machinery Co. Ltd.		118,725
	2,400	Hitachi High-Technologies Corp.		50,017
	2,600	Hitachi Koki Co. Ltd.		23,712
	7,000	Hitachi Kokusai Electric, Inc.		57,974
	6,000	Hitachi Metals Ltd.		78,531
	1,200	Hitachi Transport System Ltd.		16,638
	48,000	Hitachi Zosen Corp.		69,805
	800	Hogy Medical Co. Ltd.		32,881
	21,000	Hokkoku Bank Ltd. (The)		70,656
	10,000	Hokuetsu Kishu Paper Co. Ltd.		55,706
	1,700	Hokuto Corp.		37,859
	2,000	Horiba Ltd.		59,921
	2,600	Hoshizaki Electric Co. Ltd.		50,116
	7,100	Hosiden Corp.		70,615
	2,700	House Foods Corp.		44,057
	2,700	Hulic Co. Ltd.		22,461
	17,000	Hyakugo Bank Ltd. (The)		73,540
	19,000	Hyakujushi Bank Ltd. (The)		70,483
	1,800	IBJ Leasing Co. Ltd.		44,212
	3,100	Iino Kaiun Kaisha Ltd.		14,709
	2,400	Inaba Denki Sangyo Co. Ltd.		63,298
	6,400	Inabata & Co. Ltd.		36,441
	17,000	Iseki & Co. Ltd.*		38,341
	25,000	Ishihara Sangyo Kaisha Ltd.*		29,579
	7,100	IT Holdings Corp.		69,215
	4,400	ITO EN Ltd.		77,599
	3,900	ITOCHU Enex Co. Ltd.		21,101
	2,200	ITOCHU Techno-Solutions Corp.		77,002
	21,000	Itoham Foods, Inc.		82,820
	21,000	Iwatani Corp.		68,585
	13,000	Iyo Bank Ltd. (The)		108,145
	4,800	Izumi Co. Ltd.		68,208
	7,000	Izumiya Co. Ltd.		30,281
	19,000	Jaccs Co. Ltd.		52,218
	1,500	Jafco Co. Ltd.		37,990
	3,100	Japan Airport Terminal Co. Ltd.		39,848
	5,000	Japan Aviation Electronics Industry Ltd.		36,295
	1,900	Japan Petroleum Exploration Co. Ltd.		92,494
	14,000	Japan Radio Co. Ltd.		34,681
	3,700	Japan Securities Finance Co. Ltd.		22,891
	12,000	Japan Steel Works Ltd. (The)		96,130
	6,000	Japan Wool Textile Co. Ltd. (The)		52,946
	25,000	JFE Shoji Holdings, Inc.		109,380
	11,000	J-Oil Mills, Inc.		30,774
	5,000	Joshin Denki Co. Ltd.		48,003
	24,000	Juroku Bank Ltd. (The)		73,946
	7,500	JVC KENWOOD Holdings, Inc.*		38,544

See Notes to Financial Statements.

40

Schedule of Investments (Continued)

PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	2,100	Kadokawa Group Holdings, Inc.	$	54,661
	600	Kaga Electronics Co. Ltd.		6,781
	3,400	Kagome Co. Ltd.		59,083
	12,000	Kagoshima Bank Ltd. (The)		80,158
	5,000	Kaken Pharmaceutical Co. Ltd.		64,518
	11,000	Kamigumi Co. Ltd.		93,542
	13,000	Kandenko Co. Ltd.		66,650
	14,000	Kaneka Corp.		101,972
	9,000	Kansai Paint Co. Ltd.		80,527
	20,000	Kansai Urban Banking Corp.		35,741
	6,500	Kanto Auto Works Ltd.		42,057
	1,900	Kato Sangyo Co. Ltd.		31,893
	8,000	Kayaba Industry Co. Ltd.		66,157
	23,000	Keihan Electric Railway Co. Ltd.		95,243
	1,900	Keihin Corp.		35,897
	14,000	Keihin Electric Express Railway Co. Ltd.		96,969
	13,000	Keisei Electric Railway Co. Ltd.		74,821
	12,000	Keiyo Bank Ltd. (The)		58,713
	121	Kenedix, Inc.*		21,892
	7,600	Kewpie Corp.		90,762
	10,000	Kikkoman Corp.		98,842
	2,000	Kissei Pharmaceutical Co. Ltd.		37,639
	6,400	Kitz Corp.		33,128
	43,000	Kiyo Holdings, Inc.		60,944
	1,200	Kobayashi Pharmaceutical Co. Ltd.		56,200
	1,900	Kohnan Shoji Co. Ltd.		31,237
	5,000	Koito Manufacturing Co. Ltd.		78,383
	4,900	Kojima Co. Ltd.		29,349
	8,800	Kokuyo Co. Ltd.		64,856
	2,200	Komeri Co. Ltd.		59,731
	3,500	Komori Corp.		33,085
	5,200	Konami Corp.		102,283
	1,700	Kose Corp.		44,333
	2,200	K's Holdings Corp.		68,164
	29,000	Kumagai Gumi Co. Ltd.*		31,809
	19,000	Kurabo Industries Ltd.		33,954
	15,000	KUREHA Corp.		74,501
	3,100	Kurita Water Industries Ltd.		90,165
	1,600	Kuroda Electric Co. Ltd.		17,727
	1,800	Kyoei Steel Ltd.		31,568
	15,000	Kyokuyo Co. Ltd.		29,579
	4,000	KYORIN Holdings, Inc.		71,235
	7,000	Kyowa Exeo Corp.		73,330
	12,000	Kyowa Hakko Kirin Co. Ltd.		119,200
	6,000	Kyudenko Corp.		35,568
	59,600	Leopalace21 Corp.*		83,736
	2,200	Lintec Corp.		63,988
	15,000	Lion Corp.		78,568
	2,000	Mabuchi Motor Co. Ltd.		98,471
	23,000	Maeda Corp.		69,164
	7,000	Maeda Road Construction Co. Ltd.		66,170

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	6,000	Makino Milling Machine Co. Ltd.*	$	55,829
	1,300	Mandom Corp.		34,190
	15,000	Marudai Food Co. Ltd.		47,326
	54,000	Maruha Nichiro Holdings, Inc.		79,862
	3,300	Maruichi Steel Tube Ltd.		81,951
	4,300	Marusan Securities Co. Ltd.		17,912
	4,000	Matsui Securities Co. Ltd.		19,571
	3,500	Matsumotokiyoshi Holdings Co. Ltd.		73,977
	4,000	Max Co. Ltd.		49,100
	4,900	Megmilk Snow Brand Co. Ltd.		75,487
	13,000	Meidensha Corp.		55,275
	1,800	Meitec Corp.*		34,607
	3,600	Mikuni Coca-Cola Bottling Co. Ltd.		32,388
	19,000	Minato Bank Ltd. (The)		35,359
	2,000	Ministop Co. Ltd.		32,142
	1,700	Miraca Holdings, Inc.		64,321
	1,700	MISUMI Group, Inc.		42,720
	6,000	Mitsuba Corp.*		45,995
	6,000	Mitsubishi Logistics Corp.		66,182
	43,000	Mitsubishi Paper Mills Ltd.*		43,456
	13,000	Mitsubishi Steel Manufacturing Co. Ltd.		43,579
	4,800	Mitsubishi Tanabe Pharma Corp.		78,975
	1,640	Mitsubishi UFJ Lease & Finance Co. Ltd.		65,184
	6,000	Mitsuboshi Belting Co. Ltd.		28,174
	9,000	Mitsui Sugar Co. Ltd.		44,701
	11,000	Mitsui-Soko Co. Ltd.		40,535
	6,600	Mitsumi Electric Co. Ltd.		84,188
	1,900	Miura Co. Ltd.		53,670
	13,000	Miyazaki Bank Ltd. (The)		29,320
	23,000	Mizuho Securities Co. Ltd.		58,109
	35,000	Mizuho Trust & Banking Co. Ltd.*		29,332
	10,000	Mizuno Corp.		42,889
	6,000	Mochida Pharmaceutical Co. Ltd.		66,478
	73	Monex Group, Inc.		14,431
	4,900	Mori Seiki Co. Ltd.		62,805
	18,000	Morinaga & Co. Ltd.		40,375
	25,000	Morinaga Milk Industry Co. Ltd.		100,444
	1,900	Mos Food Services, Inc.		34,890
	2,000	Musashi Seimitsu Industry Co. Ltd.		47,843
	2,300	Musashino Bank Ltd. (The)		72,368
	1,600	Nabtesco Corp.		40,306
	13,000	Nachi-Fujikoshi Corp.		72,098
	7,300	Nagase & Co. Ltd.		91,947
	3,300	Namura Shipbuilding Co. Ltd.		16,634
	13,000	Nanto Bank Ltd. (The)		63,286
	1,000	NEC Networks & System Integration Corp.		12,990
	12	NET One Systems Co. Ltd.		21,504
	6,000	NGK Spark Plug Co. Ltd.		83,190
	11,000	NHK Spring Co. Ltd.		103,711
	9,000	Nichias Corp.		54,351
	2,300	Nichicon Corp.		35,149

See Notes to Financial Statements.

41

Schedule of Investments (Continued)

PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	25,000	Nichirei Corp.	$	109,378
	2,200	Nifco, Inc.		55,529
	1,900	Nihon Kohden Corp.		40,253
	3,000	Nihon Parkerizing Co. Ltd.		41,558
	4,600	Nihon Unisys Ltd.		28,289
	11,000	Nihon Yamamura Glass Co. Ltd.		30,232
	4,000	Nikkiso Co. Ltd.		33,079
	9,000	Nippo Corp.		71,765
	8,000	Nippon Chemi-Con Corp.		41,213
	7,000	Nippon Coke & Engineering Co. Ltd.		13,286
	6,000	Nippon Denko Co. Ltd.		38,970
	6,000	Nippon Densetsu Kogyo Co. Ltd.		57,530
	18,000	Nippon Flour Mills Co. Ltd.		88,514
	10,000	Nippon Kayaku Co. Ltd.		96,130
	5,000	Nippon Konpo Unyu Soko Co. Ltd.		53,488
	50,000	Nippon Light Metal Co. Ltd.*		101,060
	10,000	Nippon Metal Industry Co. Ltd.*		11,215
	13,000	Nippon Paint Co. Ltd.		90,843
	3,000	Nippon Seiki Co. Ltd.		34,533
	8,000	Nippon Shokubai Co. Ltd.		103,821
	3,100	Nippon Signal Co. Ltd.		24,070
	12,000	Nippon Soda Co. Ltd.		52,354
	11,000	Nippon Steel Trading Co. Ltd.		31,316
	23,400	Nippon Suisan Kaisha Ltd.		65,176
	280	Nippon Television Network Corp.		39,685
	4,000	Nippon Thompson Co. Ltd.		29,233
	10,000	Nippon Yakin Kogyo Co. Ltd.*		23,416
	1,500	Nipro Corp.		30,447
	49,000	Nishimatsu Construction Co. Ltd.		73,675
	32,000	Nishi-Nippon City Bank Ltd. (The)		89,919
	22,000	Nishi-Nippon Railroad Co. Ltd.		94,898
	6,600	Nissan Chemical Industries Ltd.		68,326
	8,000	Nissan Shatai Co. Ltd.		59,551
	4,000	Nissen Holdings Co. Ltd.		25,783
	1,800	Nissha Printing Co. Ltd.		36,470
	19,000	Nisshin Oillio Group Ltd. (The)		88,514
	10,000	Nisshinbo Holdings, Inc.		98,472
	2,800	Nissin Kogyo Co. Ltd.		47,069
	850	Nitori Co. Ltd.		73,226
	7,000	Nittetsu Mining Co. Ltd.		33,042
	17,000	Nitto Boseki Co. Ltd.*		40,855
	15,000	NOF Corp.		65,442
	4,000	Nomura Real Estate Holdings, Inc.		61,129
	8,000	Noritake Co. Ltd.		31,550
	2,100	Noritz Corp.		36,363
	1,000	Nsd Co. Ltd.		9,268
	48	NTT Urban Development Corp.		39,517
	240	OBIC Co. Ltd.		44,516
	23,000	Ogaki Kyoritsu Bank Ltd. (The)		73,416
	1,700	Oiles Corp.		32,684
	12,000	Oita Bank Ltd. (The)		38,008

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	8,000	Okamura Corp.	$	45,255
	10,000	Okasan Securities Group, Inc.		35,617
	95,000	Oki Electric Industry Co. Ltd.*		77,274
	2,100	Okinawa Electric Power Co., Inc. (The)		91,490
	8,000	OKUMA Corp.*		74,834
	19,000	Okumura Corp.		73,761
	3,000	Okuwa Co. Ltd.		30,836
	12,000	Onward Holdings Co. Ltd.		88,883
	1,200	Oracle Corp. Japan		51,836
	46,000	Orient Corp.*		55,558
	1,300	Oriental Land Co. Ltd.		109,909
	2,000	OSG Corp.		26,695
	1,100	Otsuka Corp.		68,733
	11,000	Pacific Metals Co. Ltd.		82,832
	1,300	Paltac Corp.		21,790
	8,000	PanaHome Corp.		53,143
	3,900	Parco Co. Ltd.		33,213
	4,000	Park24 Co. Ltd.		41,706
	25,500	Penta-Ocean Construction Co. Ltd.		55,940
	17,900	Pioneer Corp.*		75,006
	11,000	Press Kogyo Co. Ltd.*		49,889
	19,000	Rengo Co. Ltd.		113,100
	1,500	Resorttrust, Inc.		18,209
	1,300	Ricoh Leasing Co. Ltd.		28,935
	8,000	Riken Corp.		31,353
	1,300	Rinnai Corp.		85,397
	2,200	Riso Kagaku Corp.		40,969
	5,000	Rohto Pharmaceutical Co. Ltd.		50,715
	3,200	Round One Corp.		19,325
	17,000	Ryobi Ltd.*		65,578
	5,000	Ryoden Trading Co. Ltd.		30,564
	1,800	Ryohin Keikaku Co. Ltd.		82,746
	3,100	Ryosan Co. Ltd.		71,674
	2,500	Ryoyo Electro Corp.		25,604
	14,000	Saibu Gas Co. Ltd.		33,646
	1,700	Saizeriya Co. Ltd.		28,997
	8,000	Sakai Chemical Industry Co. Ltd.		41,706
	1,500	Sakata Seed Corp.		21,241
	7,000	San-Ai Oil Co. Ltd.		37,528
	15,000	Sanden Corp.		70,249
	2,000	Sangetsu Co. Ltd.		45,748
	12,000	San-in Godo Bank Ltd. (The)		88,440
	12,000	Sanken Electric Co. Ltd.		63,742
	10,000	Sanki Engineering Co. Ltd.		59,157
	37,000	Sankyo-Tateyama Holdings, Inc.*		52,896
	21,000	Sankyu, Inc.		96,019
	2,500	Sanshin Electronics Co. Ltd.		20,859
	2,400	Santen Pharmaceutical Co. Ltd.		92,433
	23,000	Sanwa Holdings Corp.		74,550
	5,000	Sanyo Chemical Industries Ltd.		40,486
	9,000	Sanyo Shokai Ltd.		26,842

See Notes to Financial Statements.

42

Schedule of Investments (Continued)

PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	11,000	Sanyo Special Steel Co. Ltd.	$	60,870
	11,700	Sapporo Hokuyo Holdings, Inc.		51,622
	24,000	Sapporo Holdings Ltd.		95,835
	15,000	Seiko Holdings Corp.*		48,989
	2,900	Seiren Co. Ltd.		19,336
	4,000	Sekisui Jushi Corp.		41,410
	12,000	Senko Co. Ltd.		35,642
	36,300	Senshu Ikeda Holdings, Inc.		53,685
	121,210	SFCG Co. Ltd.*		—
	14,000	Shiga Bank Ltd. (The)		74,710
	10,000	Shikoku Bank Ltd. (The)		29,825
	2,000	Shima Seiki Manufacturing Ltd.		52,946
	2,600	Shimachu Co. Ltd.		60,498
	10,000	Shimadzu Corp.		86,147
	800	Shimamura Co. Ltd.		74,637
	2,100	Shimano, Inc.		112,066
	3,200	Shin-Etsu Polymer Co. Ltd.		17,195
	4,500	Shinko Electric Industries Co. Ltd.		45,810
	1,400	Shinko Plantech Co. Ltd.		15,511
	13,000	Shinmaywa Industries Ltd.		55,435
	5,000	Shochiku Co. Ltd.		36,049
	1,700	Shoei Co. Ltd./Chiyoda-Ku		15,630
	6,100	Showa Corp.*		39,469
	2,100	Sintokogio Ltd.		20,990
	56	SKY Perfect JSAT Holdings, Inc.		22,327
	6,000	Smk Corp.		26,103
	4,600	Sohgo Security Services Co. Ltd.		52,497
	3,900	Sony Financial Holdings, Inc.		72,050
	20,000	Sotetsu Holdings, Inc.		54,720
	1,500	Square Enix Holdings Co. Ltd.		24,809
	1,700	Star Micronics Co. Ltd.		19,087
	1,800	Sugi Holdings Co. Ltd.		43,081
	5,100	Sumco Corp.*		97,299
	18,000	Sumikin Bussan Corp.		41,484
	900	Sumisho Computer Systems Corp.		12,667
	12,000	Sumitomo Bakelite Co. Ltd.		76,756
	39,000	Sumitomo Light Metal Industries Ltd.*		44,220
	606	Sumitomo Mitsui Financial Group, Inc.		18,634
	35,000	Sumitomo Osaka Cement Co. Ltd.		94,466
	8,700	Sumitomo Rubber Industries Ltd.		97,036
	14,000	Sumitomo Warehouse Co. Ltd. (The)		64,013
	8,000	Suruga Bank Ltd.		66,552
	20,000	SWCC Showa Holdings Co. Ltd.*		25,142
	1,900	Tachi-S Co. Ltd.		31,753
	12,000	Tadano Ltd.		63,446
	4,000	Taihei Dengyo Kaisha Ltd.		35,987
	2,000	Taikisha Ltd.		38,353
	7,000	Taiyo Yuden Co. Ltd.		97,313
	14,000	Takara Holdings, Inc.		67,809
	7,000	Takara Standard Co. Ltd.		52,366
	6,000	Takasago International Corp.		31,131

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	4,500	Takasago Thermal Engineering Co. Ltd.	$	38,267
	2,200	Takata Corp.		66,401
	1,600	Tamron Co. Ltd.		34,982
	16,000	Tekken Corp.		21,297
	18	T-Gaia Corp.		31,013
	4,000	THK Co. Ltd.		101,405
	16,000	Toagosei Co. Ltd.		85,975
	94,000	Tobishima Corp.*		33,596
	3,800	Toc Co. Ltd.		15,502
	7,000	Tochigi Bank Ltd. (The)		28,297
	23,000	Toda Corp.		85,039
	11,000	Toei Co. Ltd.		49,889
	17,000	Toho Bank Ltd. (The)		41,693
	5,200	Toho Co. Ltd.		78,058
	8,300	Toho Holdings Co. Ltd.		85,311
	9,000	Toho Zinc Co. Ltd.		48,583
	13,000	Tokai Carbon Co. Ltd.		67,772
	2,500	Tokai Rika Co. Ltd.		43,382
	1,700	Tokai Rubber Industries Ltd.		20,553
	22,000	Tokai Tokyo Financial Holdings, Inc.		65,345
	24,000	Tokuyama Corp.		123,935
	2,800	Tokyo Broadcasting System Holdings, Inc.		32,472
	21,000	Tokyo Dome Corp.*		45,292
	2,100	Tokyo Ohka Kogyo Co. Ltd.		44,231
	1,900	Tokyo Seimitsu Co. Ltd.		36,951
	8,400	Tokyo Steel Manufacturing Co. Ltd.		90,377
	9,000	Tokyo Style Co. Ltd.		60,673
	25,000	Tokyo Tatemono Co. Ltd.		89,659
	2,100	Tokyo Tomin Bank Ltd. (The)		27,848
	4,300	Tomy Co. Ltd.		36,990
	2,700	Toppan Forms Co. Ltd.		21,529
	20,000	Topy Industries Ltd.		52,255
	6,000	Toshiba Machine Co. Ltd.		31,649
	3,000	Toshiba Plant Systems & Services Corp.		33,793
	17,000	Toshiba TEC Corp.		77,939
	37,000	Toyo Construction Co. Ltd.		41,040
	13,000	Toyo Engineering Corp.		52,071
	15,000	Toyo Ink Manufacturing Co. Ltd.		75,610
	5,000	Toyo Suisan Kaisha Ltd.		114,801
	19,000	Toyo Tire & Rubber Co. Ltd.		46,130
	51,000	Toyobo Co. Ltd.		80,454
	3,500	Toyoda Gosei Co. Ltd.		76,134
	3,400	Toyota Auto Body Co. Ltd.		59,586
	5,600	Toyota Boshoku Corp.		86,823
	2,800	transcosmos, Inc.		26,157
	2,900	Trend Micro, Inc.		82,240
	2,000	Trusco Nakayama Corp.		33,670
	1,800	TS Tech Co. Ltd.		31,479
	12,000	Tsubakimoto Chain Co.		63,298
	5,300	Tsukuba Bank Ltd.*		15,350
	2,100	Tsumura & Co.		65,091

See Notes to Financial Statements.

43

Schedule of Investments (Continued)

PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	800	Tsuruha Holdings, Inc.	$	37,663
	20	TV Asahi Corp.		30,392
	500	UKC Holdings Corp.		5,361
	1,900	Ulvac, Inc.		42,243
	2,400	Unicharm Corp.		94,947
	10,000	Uniden Corp.*		36,603
	2,300	Unihair Co. Ltd.*		22,138
	1,800	Unipres Corp.		38,245
	42,000	Unitika Ltd.*		32,093
	3,000	Ushio, Inc.		60,710
	630	USS Co. Ltd.		48,217
	1,700	Valor Co. Ltd.		18,039
	4,500	VITAL KSK HOLDINGS, Inc.		37,602
	5,000	Wacoal Holdings Corp.		64,826
	2,000	Xebio Co. Ltd.		36,924
	1,100	Yachiyo Bank Ltd. (The)		33,418
	178	Yahoo! Japan Corp.		64,913
	10,000	Yamagata Bank Ltd. (The)		48,558
	14,000	Yamanashi Chuo Bank Ltd. (The)		61,942
	2,700	Yamatake Corp.		68,748
	2,200	Yamato Kogyo Co. Ltd.		72,339
	9,000	Yamazaki Baking Co. Ltd.		115,355
	4,800	Yamazen Corp.		27,390
	7,000	Yaskawa Electric Corp.		81,353
	14,000	Yodogawa Steel Works Ltd.		58,837
	12,700	Yokogawa Electric Corp.		102,364
	4,900	Yokohama Reito Co. Ltd.		33,093
	1,700	Yorozu Corp.		34,402
	9	Yoshinoya Holdings Co. Ltd.		10,926
	14,000	Yuasa Trading Co. Ltd.*		19,842
	2,800	Zensho Co. Ltd.		29,470
	8,000	Zeon Corp.		71,777
				26,876,129
		Jersey Island—0.4%
	7,735	Atrium European Real Estate Ltd.		53,017
	22,139	Beazley PLC		48,337
	7,545	Charter International PLC		103,321
	622	Randgold Resources Ltd.		54,156
	27,847	Regus PLC		52,114
				310,945
		Liechtenstein—0.1%
	291	Liechtensteinische Landesbank AG		25,466
	166	Verwaltungs- und Privat-Bank AG		21,867
				47,333
		Luxembourg—0.1%
	14,607	Colt Group SA*		36,692
	4,199	GAGFAH SA		38,188
	404	RTL Group		41,956
				116,836

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
		Malaysia—0.0%
	19,500	Parkson Retail Group Ltd.	$	29,924
		Netherlands—1.5%
	3,817	Aalberts Industries NV		96,722
	1,370	AMG Advanced Metallurgical Group NV*		30,783
	2,026	Arcadis NV		52,391
	1,085	ASM International NV*		47,205
	2,219	BinckBank N.V.		40,180
	1,454	Eurocommercial Properties NV REIT		74,853
	1,359	Grontmij NV CVA		30,606
	2,672	Heijmans NV CVA*		90,581
	1,272	Koninklijke Ten Cate NV		58,973
	1,065	Koninklijke Vopak NV		51,130
	14,235	Koninklijke Wessanen NV*		63,463
	4,137	Mediq NV		89,303
	2,115	Nieuwe Steen Investments Funds NV REIT		46,910
	5,036	Ordina NV*		29,811
	4,586	QIAGEN NV*		98,315
	1,072	Sligro Food Group NV		39,920
	1,030	TKH Group NV		32,235
	4,007	TomTom NV*		36,317
	635	Unit 4 NV		23,863
	1,739	Vastned Offices/Industrial NV REIT		34,778
	1,101	Vastned Retail NV REIT		84,531
	4,762	Wavin NV*		85,344
				1,238,214
		New Zealand—0.5%
	19,120	Air New Zealand Ltd.		17,137
	33,570	AMP NZ Office Ltd.		22,227
	32,361	Auckland International Airport Ltd.		58,008
	10,211	Contact Energy Ltd.*		49,057
	15,391	Fisher & Paykel Healthcare Corp. Ltd.		38,401
	29,739	Goodman Property Trust REIT		21,852
	18,603	Infratil Ltd.		28,540
	42,231	Kiwi Income Property Trust REIT		35,122
	8,900	Nuplex Industries Ltd.		23,427
	27,134	Sky City Entertainment Group Ltd.		77,997
	6,204	Sky Network Television Ltd.		29,205
				400,973
		Norway—1.2%
	2,675	Aker ASA, Class A		81,694
	3,739	Atea ASA		41,393
	2,428	Austevoll Seafood ASA		18,677
	2,534	Cermaq ASA*		52,237
	11,489	DNO International ASA*		17,259
	998	Fred. Olsen Energy ASA		46,099
	84,016	Marine Harvest ASA		111,133
	10,953	Norwegian Energy Co. As*		30,105
	16,935	Norwegian Property ASA*		34,264

See Notes to Financial Statements.

44

Schedule of Investments (Continued)

PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	8,588	Prosafe SE	$	69,831
	20,388	Renewable Energy Corp. ASA		72,071
	2,219	Schibsted ASA		66,794
	26,615	Sevan Marine ASA*		18,837
	3,282	Sparebanken 1 SMN		33,045
	2,974	Sparebanken 1 SR Bank		31,931
	1,451	Stolt-Nielsen Ltd.		35,174
	3,346	Subsea 7 SA		88,136
	2,059	TGS Nopec Geophysical Co. ASA		54,275
	3,789	Tomra Systems ASA		32,545
	2,589	Veidekke ASA		26,191
				961,691
		Portugal—0.7%
	38,383	Banco BPI SA*		69,131
	26,135	Banco Espirito Santo SA		110,274
	16,412	Banif SGPS SA		17,044
	10,251	CIMPOR-Cimentos de Portugal SGPS SA		70,947
	5,157	Jeronimo Martins SGPS SA		84,772
	13,980	Mota-Engil SGPS SA		37,126
	10,215	Portucel Empresa Produtora de Pasta e Papel SA		38,312
	3,495	Semapa-Sociedade de Investimento e Gestao SGPS SA		44,074
	9,315	Sonae Industria SGPS SA*		20,591
	12,223	Sonaecom SGPS SA*		28,198
	14,482	Zon Multimedia Servicos de Telecomunicacoes e Multimedia SGPS SA		82,204
				602,673
		Singapore—1.9%
	30,000	Allgreen Properties Ltd.		28,963
	58,000	Ascendas REIT		96,331
	41,000	Ascott Residence Trust REIT		39,918
	73,000	CapitaCommercial Trust REIT		86,005
	15,000	CDL Hospitality Trusts REIT		24,790
	21,000	Cosco Corp. Singapore Ltd.		38,143
	9,000	Ezra Holdings Ltd.		12,150
	48,000	Fortune REIT		23,915
	42,000	Frasers Commercial Trust REIT		27,490
	24,000	Keppel Land Ltd.		81,882
	43,000	Lippo-Mapletree Indonesia Retail Trust REIT		19,701
	20,000	M1 Ltd.		39,108
	40,000	Mapletree Logistics Trust REIT		29,618
	62,000	Neptune Orient Lines Ltd.		95,365
	51,300	Olam International Ltd.		120,459
	37,000	Raffles Education Corp. Ltd.*		20,131
	19,000	SembCorp Marine Ltd.		88,140
	11,000	SIA Engineering Co.		37,529
	34,000	Singapore Airport Terminal Services Ltd.		71,769
	18,000	Singapore Exchange Ltd.		114,870
	55,000	Singapore Post Ltd.		52,199

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	20,000	SMRT Corp. Ltd.	$	31,090
	27,000	StarHub Ltd.		63,400
	15,000	Straits Asia Resources Ltd.		36,204
	86,000	Suntec REIT		106,950
	26,000	UOL Group Ltd.		102,958
	42,000	Wing Tai Holdings Ltd.		54,293
				1,543,371
		South Korea—7.3%
	67	Amorepacific Corp.		67,522
	4,800	Asiana Airlines*		42,596
	2,475	Cheil Worldwide, Inc.		31,872
	452	Cj Cheiljedang Corp.		104,812
	1,607	CJ Corp.		121,164
	2,216	Daeduck Electronics Co.		23,677
	4,060	Daesang Corp.*		33,718
	5,680	Daewoo Engineering & Construction Co. Ltd.*		60,423
	1,920	Daewoo International Corp.		74,532
	34,360	Daewoo Motor Sales*		60,919
	4,930	Daewoo Securities Co. Ltd.		103,739
	3,030	Daewoo Shipbuilding & Marine Engineering Co. Ltd.		129,637
	3,740	Daishin Securities Co. Ltd.		50,430
	1,950	Daishin Securities Co. Ltd. (Preference)		16,322
	324	Dong-A Pharmaceutical Co. Ltd., Class A		31,745
	3,140	Dongbu Corp.*		19,602
	2,000	Dongbu Hitek Co. Ltd.*		28,461
	6,590	Dongbu Steel Co. Ltd.*		57,804
	5,990	Doosan Engineering & Construction Co. Ltd.		28,618
	2,900	Doosan Infracore Co. Ltd.*		80,101
	1,940	Halla Climate Control Corp.*		39,645
	1,179	Handsome Co. Ltd.		24,754
	413	Hanil Cement Co. Ltd.		19,925
	2,749	Hanjin Heavy Industries & Construction Co. Ltd.*		100,043
	8,640	Hanjin Heavy Industries & Construction Holdings Co. Ltd.		104,810
	1,520	Hanjin Shipping Co. Ltd.		39,502
	6,810	Hanjin Shipping Holdings Co. Ltd.		88,330
	1,053	Hanjin Transportation Co. Ltd.		25,842
	7,510	Hansol Paper Co.		57,745
	3,061	Hanwha Chemical Corp.		136,247
	3,039	Hanwha General Insurance Co. Ltd.*		25,295
	3,262	Hanwha Securities Co.*		22,038
	382	Hite Brewery Co. Ltd.		41,884
	1,111	Hotel Shilla Co. Ltd.		27,318
	1,260	Hyundai Hysco		51,204
	4,070	Hyundai Marine & Fire Insurance Co. Ltd.		106,910
	3,610	Hyundai Merchant Marine Co. Ltd.		110,154
	8,500	Hyundai Securities Co.		107,474

See Notes to Financial Statements.

45

Schedule of Investments (Continued)

PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	3,823	Jeonbuk Bank	$	20,941
	337	KCC Corp.		113,995
	2,990	Keangnam Enterprises Ltd.*		32,086
	754	Kisco Corp.		23,218
	910	Kolon Corp.		24,371
	4,980	Kolon Engineering & Construction Co. Ltd.*		18,867
	457	Korea Express Co. Ltd.*		44,990
	2,340	Korea Investment Holdings Co. Ltd.		91,600
	3,967	Korea Line Corp.*		22,396
	366	Korea Zinc Co. Ltd.		144,126
	5,939	Korean Reinsurance Co.		68,166
	1,690	Kyeryong Construction Industrial Co. Ltd.		22,236
	1,070	LG Fashion Corp.		33,149
	401	LG Hausys Ltd.		29,785
	127	LG Household & Health Care Ltd.		51,077
	258	LG Innotek Co. Ltd.		26,001
	16,650	LG Uplus Corp.		101,145
	3,810	LIG Insurance Co. Ltd.		94,037
	57	Lotte Chilsung Beverage Co. Ltd.		61,061
	48	Lotte Confectionery Co. Ltd.		71,128
	3,664	Meritz Finance Holdings Co. Ltd.*		17,823
	8,755	Meritz Fire & Marine Insurance Co. Ltd.		100,487
	587	Mirae Asset Securities Co. Ltd.		23,718
	40	Namyang Dairy Products Co. Ltd.		30,122
	99	Ncsoft Corp.		26,190
	464	NHN Corp.*		92,008
	271	Nong Shim Co. Ltd.		63,094
	349	OCI Co. Ltd.		208,425
	117	Orion Corp./Republic of South Korea		45,363
	220	Ottogi Corp.		27,201
	401	Pacific Corp.		78,954
	1,190	Poongsan Corp.		45,195
	890	S&t Daewoo Co. Ltd.		25,870
	847	S1 Corp./Korea		41,336
	471	Samchully Co. Ltd.		44,830
	1,348	Samsung Card Co. Ltd.		66,919
	493	Samsung Engineering Co. Ltd.		109,259
	449	Samsung Fine Chemicals Co. Ltd.		33,225
	1,168	Samsung Techwin Co. Ltd.		96,021
	782	Samyang Corp.		60,566
	1,520	Seah Besteel Corp.		78,011
	1,896	SK Chemicals Co. Ltd.		133,754
	750	SK Gas Co. Ltd.		35,553
	9,510	SK Networks Co. Ltd.		105,159
	630	SKC Co. Ltd.		36,155
	4,070	Ssangyong Cement Industrial Co. Ltd.*		25,825
	7,160	Ssangyong Motor Co.*		66,011
	1,540	STX Engine Co. Ltd.*		41,674
	10,680	STX Pan Ocean Co. Ltd.		86,504
	75	Taekwang Industrial Co. Ltd.		106,168
	6,270	Taeyoung Engineering & Construction		32,764

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	13,580	Taihan Electric Wire Co. Ltd.*	$	65,514
	11,520	Tong Yang Major Corp.*		20,156
	13,720	Tong Yang Securities, Inc.		100,629
	2,740	Woongjin Coway Co. Ltd.		91,534
	1,470	Woongjin Thinkbig Co. Ltd.		23,662
	5,380	Woori Investment & Securities Co. Ltd.		107,685
	33	Young Poong Corp.		28,607
	251	Yuhan Corp.		33,611
				5,846,771
		Spain—2.0%
	2,362	Abengoa SA		78,846
	2,468	Almirall SA		28,194
	4,719	Antena 3 de Television SA		43,827
	11,215	Banco de Valencia SA		45,423
	7,894	Banco Espanol de Credito SA		73,971
	3,218	Bolsas y Mercados Espanoles		109,162
	4,060	Caja de Ahorros del Mediterraneo		29,153
	99	Construcciones y Auxiliar de Ferrocarriles SA		60,440
	930	Corporacion Financiera Alba SA		57,411
	12,506	EDP Renovaveis SA*		96,480
	6,072	Gestevision Telecinco SA*		68,347
	3,686	Grifols SA		73,115
	2,982	Grupo Catalana Occidente SA		78,395
	9,275	Grupo Empresarial Ence SA*		38,942
	26,281	Iberdrola Renovables SA		120,519
	13,754	NH Hoteles SA*		116,209
	665	Pescanova SA		27,723
	24,230	Promotora de Informaciones SA, Class A*		68,659
	855	Prosegur Cia de Seguridad SA		52,325
	1,611	Red Electrica Corporacion SA		102,965
	3,388	Sol Melia SA		44,233
	785	Tecnicas Reunidas SA		49,357
	7,523	Tubacex SA*		32,256
	1,067	Viscofan SA		47,126
	5,144	Zardoya Otis SA		87,764
				1,630,842
		Sweden—2.3%
	1,832	AarhusKarlshamn AB		60,181
	1,053	AF AB, Class B		23,497
	545	Avanza Bank Holding AB		19,983
	1,007	Axis Communications AB		25,729
	3,805	Be Group AB*		28,408
	3,833	Billerud AB		46,741
	3,721	Bure Equity AB*		21,175
	6,480	Castellum AB		100,736
	2,406	Clas Ohlson AB, Class B		38,920
	1,048	Elekta AB, Class B		47,885
	21,565	Eniro AB*		81,932
	7,572	Fabege AB		87,185
	3,229	Gunnebo AB		22,875

See Notes to Financial Statements.

46

Schedule of Investments (Continued)

PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	1,773	Hakon Invest AB	$	31,357
	1,881	Haldex AB*		33,236
	1,052	Hoganas AB, Class B*		43,809
	5,017	Hufvudstaden AB, Class A		64,508
	2,672	Intrum Justitia AB		40,563
	2,689	JM AB		76,958
	5,875	KappAhl AB		34,895
	5,731	Klovern AB		31,187
	10,587	Kungsleden AB		111,975
	4,281	Lindab International AB*		57,247
	3,524	Loomis AB, Class B*		56,128
	6,529	Lundin Petroleum AB*		99,494
	10,599	Meda AB, Class A		112,454
	722	Mekonomen AB		27,970
	1,535	Modern Times Group AB, Class B		117,912
	1,562	Nibe Industrier AB, Class B		26,692
	17,502	Niscayah Group AB		36,006
	8,045	Nobia AB*		64,334
	2,339	Oresund Investment AB		42,881
	50,278	PA Resources AB*		37,203
	4,517	Rezidor Hotel Group AB*		32,675
	1,039	Skistar AB		17,927
	1,443	Wallenstam AB, Class B		47,163
	1,049	Wihlborgs Fastigheter AB		31,675
				1,881,496
		Switzerland—3.0%
	1,162	Actelion Ltd.*		68,172
	1,121	AFG Arbonia-Forster Holding AG*		46,147
	181	Allreal Holding AG		29,595
	1,000	Bank Sarasin & Cie AG, Class B		43,756
	98	Banque Cantonale Vaudoise		59,977
	67	Barry Callebaut AG*		63,763
	555	Bb Biotech AG		41,795
	633	BKW FMB Energie AG*		41,911
	318	Bucher Industries AG		77,262
	65	Burckhardt Compression Holding AG		20,788
	458	Charles Voegele Holding AG*		36,521
	226	Daetwyler Holding AG		22,068
	328	Dufry Group*		42,716
	1,671	EFG International AG		24,821
	93	Emmi AG		23,024
	450	Ems-Chemie Holding AG		92,440
	88	Flughafen Zuerich AG		38,607
	67	Forbo Holding AG		54,621
	98	Galenica AG		64,547
	188	Georg Fischer AG*		122,311
	361	Huber & Suhner AG		26,728
	95	Kaba Holding AG, Class B		42,279
	1,673	Kudelski SA		30,534
	127	Kuoni Reisen Holding AG, Class B		58,203

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	4,582	Logitech International SA*	$	63,207
	115	Mobimo Holding AG*		27,729
	4,385	Nobel Biocare Holding AG		96,995
	8,822	OC Oerlikon Corp. AG*		77,203
	805	Panalpina Welttransport Holding AG*		108,452
	129	Partners Group Holding AG		27,287
	1,061	PSP Swiss Property AG*		96,149
	191	Rieter Holding AG*		82,035
	7,871	Schmolz + Bickenbach AG*		92,899
	36	Sika AG		91,529
	725	Sonova Holding AG		72,922
	61	St. Galler Kantonalbank AG		34,049
	118	Straumann Holding AG		30,721
	953	Swiss Prime Site AG*		79,174
	462	Valiant Holding		65,380
	159	Valora Holding AG		54,101
	17	Vetropack Holding AG		37,056
	1,341	Vontobel Holding AG		54,431
	13	Zehnder Group AG		40,866
				2,404,771
		United Kingdom—8.3%
	29,348	Aberdeen Asset Management PLC		112,098
	3,579	Admiral Group PLC		101,005
	38,351	Aegis Group PLC		89,555
	8,343	Afren PLC*		22,251
	3,911	Aggreko PLC		116,573
	6,006	ARM Holdings PLC		62,159
	6,254	Ashmore Group PLC		38,919
	32,306	Ashtead Group PLC		108,955
	3,102	Autonomy Corp. PLC*		83,300
	8,346	Babcock International Group PLC		89,162
	22,006	BBA Aviation PLC		79,649
	6,049	Berendsen PLC		52,415
	5,405	Berkeley Group Holdings PLC (The)*		95,561
	5,259	Big Yellow Group PLC REIT		29,157
	15,568	Bodycote PLC		100,751
	86,334	Booker Group PLC		86,401
	9,047	Bovis Homes Group PLC		66,396
	9,155	Brewin Dolphin Holdings PLC		26,265
	13,965	Britvic PLC		95,385
	9,616	Cairn Energy PLC*		72,479
	14,549	Capital & Counties Properties PLC		40,817
	2,047	Carpetright PLC		23,678
	20,319	Chaucer Holdings PLC		18,725
	4,149	Chemring Group PLC		46,366
	4,435	Computacenter PLC		34,124
	2,210	Croda International PLC		69,338
	7,087	CSR PLC*		44,151
	10,775	Daily Mail & General Trust PLC, Class A		89,699
	11,154	Dairy Crest Group PLC		74,789

See Notes to Financial Statements.

47

Schedule of Investments (Continued)

PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	2,229	Derwent London PLC REIT	$	66,587
	4,458	Devro PLC		21,281
	2,547	Domino Printing Sciences PLC		28,591
	27,438	DS Smith PLC		99,265
	15,518	Elementis PLC		42,966
	38,709	F&C Asset Management PLC		51,361
	6,925	Fenner PLC		44,793
	8,540	Filtrona PLC		49,000
	1,120	Forth Ports PLC		30,245
	960	Fresnillo PLC		26,276
	3,161	Galliford Try PLC		21,880
	60,367	Game Group PLC		53,114
	4,286	Gem Diamonds Ltd.*		20,546
	31,000	Genting Singapore PLC*		55,038
	1,366	Genus PLC		22,727
	3,157	Go-Ahead Group PLC		74,457
	12,156	Grainger PLC		23,317
	7,902	Great Portland Estates PLC REIT		55,502
	5,405	Greggs PLC		46,429
	11,751	Halfords Group PLC		77,400
	10,366	Halma PLC		64,578
	44,481	Henderson Group PLC		120,415
	2,082	Hikma Pharmaceuticals PLC		27,278
	136,221	HMV Group PLC		24,425
	2,122	Hochschild Mining PLC		21,590
	6,452	Homeserve PLC		52,592
	20,394	Howden Joinery Group PLC*		37,622
	4,652	Hunting PLC		62,618
	9,258	IG Group Holdings PLC		72,114
	10,498	International Personal Finance PLC		64,350
	17,334	Interserve PLC		81,243
	2,736	Intertek Group PLC		96,975
	5,269	Ite Group PLC		22,674
	5,301	Jardine Lloyd Thompson Group PLC		62,202
	8,007	JD Wetherspoon PLC		60,740
	8,688	John Wood Group PLC		101,003
	2,443	Keller Group PLC		26,833
	2,193	Kier Group PLC		48,649
	16,903	Laird PLC		39,640
	6,246	London Stock Exchange Group PLC		90,793
	42,224	Marston's PLC		76,343
	15,276	McBride PLC		34,270
	13,586	Melrose PLC		80,242
	7,137	Michael Page International PLC		65,711
	6,122	Micro Focus International PLC		37,935
	6,636	Millennium & Copthorne Hotels PLC		58,497
	11,610	Misys PLC*		61,116
	21,888	Mitie Group PLC		77,251
	11,271	Morgan Crucible Co. PLC		58,278
	4,592	Mothercare PLC		32,161
	10,460	N Brown Group PLC		52,933

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	18,066	Northumbrian Water Group PLC	$	105,737
	7,265	Pace PLC		19,522
	19,543	Paragon Group of Cos. PLC		56,360
	3,515	Petrofac Ltd.		88,529
	2,304	Petropavlovsk PLC		34,318
	12,119	Premier Farnell PLC		57,711
	1,851	Premier Oil PLC*		61,748
	5,537	PZ Cussons PLC		30,274
	44,543	Qinetiq Group PLC*		89,823
	14,633	Rank Group PLC		36,782
	1,628	Rathbone Brothers PLC		31,635
	14,915	Redrow PLC*		32,689
	8,722	Restaurant Group PLC		48,735
	3,983	Robert Wiseman Dairies PLC		20,927
	1,433	Rotork PLC		40,991
	9,911	RPS Group PLC		37,773
	4,153	Salamander Energy PLC*		20,975
	4,284	Savills PLC		28,689
	13,555	Senior PLC		34,547
	6,276	Shaftesbury PLC REIT		53,701
	25,998	Shanks Group PLC		52,210
	4,511	Soco International PLC*		29,337
	2,991	Spectris PLC		73,984
	1,776	Spirax-Sarco Engineering PLC		59,512
	8,532	Spirent Communications PLC		20,777
	11,450	Sports Direct International PLC*		38,502
	5,748	St. James's Place PLC		34,026
	3,284	Sthree PLC		23,981
	6,800	SVG Capital PLC*		31,123
	1,738	Synergy Health PLC		24,525
	15,097	TalkTalk Telecom Group PLC		34,951
	2,523	Telecity Group PLC*		22,114
	22,927	Trinity Mirror PLC*		18,547
	11,171	Tullett Prebon PLC		78,350
	1,469	Ultra Electronics Holdings PLC		42,340
	5,965	Unite Group PLC*		21,361
	1,477	Victrex PLC		36,288
	3,654	Weir Group PLC (The)		117,263
	9,549	WH Smith PLC		74,858
	9,211	Wincanton PLC		16,170
	53,959	Workspace Group PLC REIT		26,100
	5,838	WS Atkins PLC		75,952
	34,997	Xchanging PLC*		46,699
	6,872	Yule Catto & Co. PLC		25,045
				6,649,450
	Total Common Stocks and Other Equity Interests	(Cost $73,961,490)		80,232,724

See Notes to Financial Statements.

48

Schedule of Investments (Continued)

PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Preferred Stocks—0.3%
		Germany—0.3%
	330	Draegerwerk AG & Co. KGAA	$	34,614
	199	Fuchs Petrolub AG		32,638
	390	Hugo Boss AG		38,766
	964	Jungheinrich AG		44,365
	2,442	ProSiebenSat.1 Media AG		70,050
	868	Sixt AG		35,111
				255,544
		Hong Kong—0.0%
	5,495	Fubon Bank Hong Kong Ltd.*		705
		Total Preferred Stocks (Cost $168,569)		256,249
		Rights—0.0%
		Austria—0.0%
	24,553	Immofinanz AG, expiring 12/31/49*		—
		Spain—0.0%
	11,215	Banco de Valencia SA, expiring 05/09/11*		881
		United Kingdom—0.0%
	305,520	McBride PLC, expiring 05/16/11*		510
		Total Rights (Cost $0)		1,391
		Total Investments (Cost $74,130,059)—99.9%		80,490,364
		Other assets less liabilities—0.1%		86,475
		Net Assets—100.0%	$	80,576,839

Investment Abbreviations:

CVA—Dutch Certificate

REIT—Real Estate Investment Trust

Notes to Schedule of Investments:

*  Non-income producing security.

See Notes to Financial Statements.

49

Portfolio Composition

PowerShares FTSE RAFI Emerging Markets Portfolio

Sector Breakdown (% of the Fund's Net Assets) as of April 30, 2011 (Unaudited)

Financials	24.6
Energy	22.1
Materials	14.8
Information Technology	11.5
Telecommunication Services	10.5
Industrials	5.3
Consumer Staples	4.1
Utilities	3.7
Consumer Discretionary	3.0
Health Care	0.2
Other assets less liabilities	0.2

Schedule of Investments

PowerShares FTSE RAFI Emerging Markets Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—95.6%
		Brazil—13.3%
	9,100	AES Tiete SA	$	135,786
	68,300	All America Latina Logistica SA*		562,762
	279,049	Banco Bradesco SA		5,531,660
	225,058	Banco do Brasil SA		4,135,149
	99,484	Banco Santander Brasil SA		1,151,128
	280,785	BM&FBOVESPA SA		2,108,253
	25,291	Bradespar SA		655,228
	139,289	Brasil Telecom SA		1,287,598
	51,009	Braskem SA, Class A		737,780
	77,000	BRF - Brasil Foods SA		1,561,638
	24,900	CCR SA		773,326
	231,710	Centrais Eletricas Brasileiras SA		3,769,872
	15,735	Cia de Bebidas das Americas		423,061
	20,464	Cia de Saneamento Basico do Estado de Sao Paulo		596,135
	17,752	Cia Energetica de Minas Gerais		287,684
	26,021	Cia Energetica de Sao Paulo, Class B		501,594
	28,108	Cia Paranaense de Energia		762,520
	153,882	Cia Siderurgica Nacional SA		2,402,786
	52,900	Cyrela Brazil Realty SA Empreendimentos E Participacoes		560,648
	17,247	EDP - Energias do Brasil SA		428,845
	149,167	Embraer SA		1,180,704
	31,655	Fibria Celulose SA		496,087
	37,713	Gerdau SA		367,803
	337,928	Itau Unibanco Holding SA		7,895,514
	222,227	Itausa - Investimentos Itau SA		1,703,896

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	105,182	JBS SA	$	355,756
	104,100	Klabin SA		403,057
	39,204	Light SA		661,002
	153,570	Metalurgica Gerdau SA		2,211,431
	36,800	Natura Cosmeticos SA		1,032,946
	498,962	Petroleo Brasileiro SA		9,126,541
	59,900	Redecard SA		870,567
	55,875	Souza Cruz SA		635,872
	50,400	Suzano Papel E Celulose SA		496,021
	38,275	Tele Norte Leste Participacoes SA		819,570
	22,343	Telecomunicacoes de Sao Paulo SA		595,188
	17,435	Telemar Norte Leste SA, Class A		605,664
	42,283	Tim Participacoes SA		228,768
	45,454	Tractebel Energia SA		804,815
	42,496	Ultrapar Participacoes SA		742,984
	72,584	Usinas Siderurgicas de Minas Gerais SA		1,179,046
	179,332	Usinas Siderurgicas de Minas Gerais SA, Class A		1,835,619
	167,823	Vale SA		5,506,609
	216,927	Vale SA, Class A		6,359,275
	11,052	Vivo Participacoes SA		448,502
	31,700	Weg SA		394,008
				75,330,698
		Chile—1.4%
	3,702,372	Banco de Chile		555,416
	5,547,248	Banco Santander Chile		490,623

See Notes to Financial Statements.

50

Schedule of Investments (Continued)

PowerShares FTSE RAFI Emerging Markets Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	72,682	Centros Comerciales Sudamericanos SA	$	574,630
	597,574	Empresa Nacional de Electricidad SA		1,132,825
	23,617	Empresa Nacional de Telecomunicaciones SA		477,731
	18,040	Empresas CMPC SA		1,002,231
	65,597	Empresas Copec SA		1,273,690
	4,122,529	Enersis SA		1,765,082
	56,258	S.A.C.I. Falabella		614,588
				7,886,816
		China—10.1%
	2,530,000	Agricultural Bank of China Ltd., Class H*		1,495,018
	580,000	Aluminum Corp. of China Ltd., H-Shares		544,338
	366,000	Angang Steel Co. Ltd., H-Shares		469,774
	11,321,000	Bank of China Ltd., H-Shares		6,252,522
	1,300,000	Bank of Communications Co. Ltd., H-Shares		1,377,388
	1,352,000	China CITIC Bank Corp. Ltd., H-Shares		967,753
	544,000	China Coal Energy Co., H-Shares		757,773
	1,358,000	China Communications Construction Co. Ltd., H-Shares		1,253,522
	10,888,000	China Construction Bank Corp., H-Shares		10,288,624
	514,500	China COSCO Holdings Co. Ltd., H-Shares*		494,126
	854,000	China Life Insurance Co. Ltd., H-Shares		3,034,451
	379,700	China Merchants Bank Co. Ltd., H-Shares		977,651
	602,600	China Minsheng Banking Corp. Ltd., H-Shares		577,961
	180,600	China Pacific Insurance (Group) Co. Ltd., H-Shares		780,052
	4,413,984	China Petroleum & Chemical Corp. (Sinopec), H-Shares		4,443,761
	538,000	China Railway Construction Corp. Ltd., H-Shares		475,138
	1,046,000	China Railway Group Ltd., H-Shares		560,194
	493,500	China Shenhua Energy Co. Ltd., H-Shares		2,303,076
	4,236,000	China Telecom Corp. Ltd., H-Shares		2,443,133
	290,000	Dongfeng Motor Group Co. Ltd., H-Shares		452,495
	386,000	Guangzhou Automobile Group Co. Ltd., Class H		435,813
	986,000	Huaneng Power International, Inc., H-Shares		543,293
	9,774,000	Industrial & Commercial Bank of China Ltd., H-Shares		8,267,055
	3,766,000	PetroChina Co. Ltd., H-Shares		5,410,752
	340,000	PICC Property & Casualty Co. Ltd., H-Shares*		436,840
	137,500	Ping An Insurance (Group) Co. of China Ltd., H-Shares		1,494,912
	168,000	Yanzhou Coal Mining Co. Ltd., H-Shares		655,338
				57,192,753

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
		Czech Republic—1.0%
	49,736	CEZ AS	$	2,853,843
	2,927	Komercni Banka AS		772,466
	59,722	Telefonica O2 Czech Republic AS		1,534,023
	35,291	Unipetrol AS*		419,710
				5,580,042
		Hong Kong—4.2%
	81,000	Beijing Enterprises Holdings Ltd.		430,152
	116,000	China Merchants Holdings International Co. Ltd.		533,884
	1,144,000	China Mobile Ltd.		10,515,681
	434,000	China Overseas Land & Investment Ltd.		834,744
	234,000	China Resources Enterprise Ltd.		942,917
	320,000	China Resources Power Holdings Co. Ltd.		589,114
	1,626,000	China Unicom (Hong Kong) Ltd.		3,307,431
	264,000	Citic Pacific Ltd.		788,506
	1,975,000	CNOOC Ltd.		4,871,646
	109,000	Shanghai Industrial Holdings Ltd.		430,101
	790,500	Sino-Ocean Land Holdings Ltd.		448,801
				23,692,977
		Hungary—1.1%
	338,065	Magyar Telekom Telecommunications PLC		1,152,582
	17,770	MOL Hungarian Oil and Gas PLC*		2,481,160
	72,561	OTP Bank PLC*		2,571,511
				6,205,253
		India—6.5%
	36,601	HDFC Bank Ltd. ADR		6,299,032
	231,252	ICICI Bank Ltd. ADR		11,655,101
	177,835	Infosys Technologies Ltd. ADR		11,591,285
	271,883	Sterlite Industries (India) Ltd. ADR		4,445,287
	108,332	Tata Motors Ltd. ADR		2,972,630
				36,963,335
		Indonesia—1.3%
	292,539	PT Astra International Tbk		1,918,037
	998,500	PT Bank Central Asia Tbk		862,786
	1,483,500	PT Bank Rakyat Indonesia (Persero) Tbk		1,117,302
	2,463,500	PT Bumi Resources Tbk		985,227
	2,227,000	PT Telekomunikasi Indonesia Tbk		2,002,324
	204,500	PT United Tractors Tbk		555,187
				7,440,863
		Malaysia—3.6%
	257,400	AMMB Holdings Bhd		554,427
	880,200	Axiata Group Bhd*		1,456,104
	25,500	British American Tobacco Malaysia Bhd		413,234
	529,800	CIMB Group Holdings Bhd		1,464,910
	97,300	DiGi.Com Bhd		955,261
	292,100	Genting Bhd		1,143,943

See Notes to Financial Statements.

51

Schedule of Investments (Continued)

PowerShares FTSE RAFI Emerging Markets Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	383,100	Genting Malaysia Bhd	$	475,965
	185,900	IJM Corp. Bhd		389,122
	570,800	IOI Corp. Bhd		1,019,423
	65,400	Kuala Lumpur Kepong Bhd		466,323
	897,600	Malayan Banking Bhd		2,651,587
	394,500	MISC Bhd		1,038,859
	267,200	Petronas Chemicals Group Bhd*		652,213
	128,000	Petronas Gas Bhd		486,590
	260,700	PLUS Expressways Bhd		395,187
	79,900	PPB Group Bhd		458,036
	445,100	Public Bank Bhd		1,968,538
	663,800	Sime Darby Bhd		2,021,430
	426,300	Telekom Malaysia Bhd		574,253
	371,700	Tenaga Nasional Bhd		754,192
	181,100	UMW Holdings Bhd		429,822
	639,600	YTL Power International Bhd		488,014
				20,257,433
		Mexico—5.1%
	52,688	Alfa SAB de CV, Class A		781,731
	1,812,000	America Movil SAB de CV, Series L		5,182,081
	7,096,338	Cemex SAB de CV CPO		6,128,991
	61,396	Coca-Cola Femsa SAB de CV, Series L		489,060
	215,000	Empresas ICA SAB de CV*		529,483
	325,592	Fomento Economico Mexicano SAB de CV		2,043,844
	115,700	Grupo Aeroportuario del Pacifico SAB de CV, Class B		480,177
	201,200	Grupo Bimbo SAB de CV, Series A		444,029
	154,200	Grupo Carso SAB de CV, Series A1		597,973
	280,700	Grupo Financiero Banorte SAB de CV, Class O		1,399,606
	804,787	Grupo Mexico SAB de CV, Series B		2,781,721
	86,276	Grupo Modelo SAB de CV, Series C		545,771
	396,000	Grupo Televisa SA, Series CPO*		1,870,801
	23,065	Industrias Penoles SAB de CV		896,039
	65,900	Kimberly-Clark de Mexico SAB de CV, Class A		405,732
	225,500	Minera Frisco SAB de CV, Series A1*		969,501
	2,130,000	Telefonos de Mexico SAB de CV, Class L		1,994,797
	510,200	Wal-Mart de Mexico SAB de CV, Series V		1,592,716
				29,134,053
		Poland—2.6%
	18,101	Bank Pekao SA		1,188,070
	33,876	Grupa Lotos SA*		607,110
	32,902	KGHM Polska Miedz SA		2,423,901
	141,385	Polska Grupa Energetyczna SA		1,277,318
	201,012	Polski Koncern Naftowy Orlen*		4,193,121
	343,520	Polskie Gornictwo Naftowe i Gazownictwo SA		504,071
	95,494	Powszechna Kasa Oszczednosci Bank Polski SA		1,646,200

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	8,250	Powszechny Zaklad Ubezpieczen SA	$	1,160,788
	309,165	Telekomunikacja Polska SA		2,046,717
				15,047,296
		Russia—12.8%
	155,470	Federal Hydrogenerating Co. JSC ADR*		807,667
	1,597,024	Gazprom OAO ADR*		27,245,229
	238,770	LUKOIL OAO ADR		16,642,269
	59,652	Magnitogorsk Iron & Steel Works GDR		749,229
	107,762	MMC Norilsk Nickel JSC ADR		3,001,172
	99,402	Mobile TeleSystems OJSC ADR		2,102,352
	6,453	NovaTek OAO GDR		906,647
	27,251	Novolipetsk Steel OJSC GDR		1,039,898
	314,268	Rosneft Oil Co. GDR		2,804,842
	53,585	Severstal GDR		964,530
	50,876	Sistema JSFC GDR		1,434,195
	1,011,775	Surgutneftegas OJSC ADR		10,795,639
	77,001	Tatneft GDR		3,471,975
	107,360	VTB Bank OJSC GDR		694,619
				72,660,263
		South Africa—11.1%
	85,343	ABSA Group Ltd.		1,761,352
	174,901	African Bank Investments Ltd.		1,016,928
	13,595	Anglo Platinum Ltd.		1,376,589
	18,659	AngloGold Ashanti Ltd.		942,638
	64,339	ArcelorMittal South Africa Ltd.		877,101
	61,544	Aspen Pharmacare Holdings Ltd.		756,780
	143,808	Aveng Ltd.		761,262
	112,186	Barloworld Ltd.		1,268,803
	84,898	Bidvest Group Ltd.		1,952,324
	74,662	DataTec Ltd.		414,273
	1,032,499	FirstRand Ltd.		3,238,315
	36,624	Foschini Group Ltd. (The)		503,725
	94,862	Gold Fields Ltd.		1,688,944
	298,648	Growthpoint Properties Ltd.		826,052
	53,928	Harmony Gold Mining Co. Ltd.		811,720
	114,921	Impala Platinum Holdings Ltd.		3,576,975
	66,314	Imperial Holdings Ltd.		1,187,817
	79,011	Investec Ltd.		636,915
	55,608	JD Group Ltd.		404,786
	7,999	Kumba Iron Ore Ltd.		582,900
	46,816	Liberty Holdings Ltd.		511,002
	38,037	Massmart Holdings Ltd.		831,511
	227,528	MMI Holdings Ltd.		587,196
	52,419	Mondi Ltd.		502,529
	243,045	MTN Group Ltd.		5,386,528
	165,368	Murray & Roberts Holdings Ltd.		632,632
	139,944	Nampak Ltd.		476,947
	21,379	Naspers Ltd., Class N		1,281,987
	64,652	Nedbank Group Ltd.		1,435,315
	236,544	Netcare Ltd.		509,917

See Notes to Financial Statements.

52

Schedule of Investments (Continued)

PowerShares FTSE RAFI Emerging Markets Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	60,979	Pick n Pay Stores Ltd.	$	393,523
	140,560	Pretoria Portland Cement Co. Ltd.		533,459
	79,745	Remgro Ltd.		1,378,637
	58,408	Reunert Ltd.		552,407
	128,226	RMB Holdings Ltd.		551,470
	588,135	Sanlam Ltd.		2,514,252
	178,178	Sappi Ltd.*		968,359
	102,980	Sasol Ltd.		5,925,039
	70,812	Shoprite Holdings Ltd.		1,112,619
	35,000	Spar Group Ltd. (The)		518,050
	355,984	Standard Bank Group Ltd.		5,567,924
	365,772	Steinhoff International Holdings Ltd.*		1,404,851
	281,620	Telkom SA Ltd.		1,635,287
	24,454	Tiger Brands Ltd.		714,628
	43,960	Truworths International Ltd.		506,989
	71,739	Vodacom Group Ltd.		874,521
	164,080	Woolworths Holdings Ltd.		746,022
				62,639,800
		Taiwan—17.8%
	859,331	Acer, Inc.		1,608,329
	783,539	Advanced Semiconductor Engineering, Inc.		911,076
	614,200	Asia Cement Corp.		821,407
	312,900	Asustek Computer, Inc.		2,818,870
	3,603,000	AU Optronics Corp.*		2,887,332
	1,276,450	Cathay Financial Holding Co. Ltd.		2,130,499
	659,000	Chang Hwa Commercial Bank		575,275
	755,000	Chimei Innolux Corp.*		775,076
	2,496,750	China Development Financial Holding Corp.		1,046,179
	3,129,175	China Steel Corp.		3,867,968
	1,893,456	Chinatrust Financial Holding Co. Ltd.		1,735,539
	1,502,768	Chunghwa Picture Tubes Ltd.*		201,499
	1,040,000	Chunghwa Telecom Co. Ltd.		3,308,274
	1,564,000	CMC Magnetics Corp.*		380,098
	1,900,054	Compal Electronics, Inc.		2,152,932
	269,000	Coretronic Corp.		411,411
	252,000	Delta Electronics, Inc.		1,126,316
	421,000	Evergreen Marine Corp. Taiwan Ltd.*		389,563
	261,000	Far Eastern Department Stores Co. Ltd.		461,148
	749,760	Far Eastern New Century Corp.		1,178,106
	569,000	Far EasTone Telecommunications Co. Ltd.		863,280
	1,092,525	First Financial Holding Co. Ltd.		1,012,851
	830,000	Formosa Chemicals & Fibre Corp.		3,347,417
	458,000	Formosa Petrochemical Corp.		1,607,242
	1,042,000	Formosa Plastics Corp.		4,256,997
	441,000	Formosa Taffeta Co. Ltd.		477,364
	191,000	Foxconn Technology Co. Ltd.		913,700
	1,261,867	Fubon Financial Holding Co. Ltd.		1,850,600
	2,570,000	HannStar Display Corp.*		452,286
	2,017,480	Hon Hai Precision Industry Co. Ltd.		7,643,437
	71,124	HTC Corp.		3,228,563

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	1,226,765	Hua Nan Financial Holdings Co. Ltd.	$	980,949
	1,384,250	Inventec Co. Ltd.		744,363
	884,000	King Yuan Electronics Co. Ltd.*		496,967
	1,091,009	Lite-On Technology Corp.		1,380,976
	557,000	Macronix International		365,648
	211,091	MediaTek, Inc.		2,332,884
	2,315,000	Mega Financial Holding Co. Ltd.		2,020,881
	1,512,000	Nan Ya Plastics Corp.		4,635,494
	127,000	Novatek Microelectronics Corp.		388,027
	671,106	Pegatron Corp.*		707,698
	1,277,740	Pou Chen Corp.		1,204,636
	152,000	Powertech Technology, Inc.		551,984
	131,000	President Chain Store Corp.		718,159
	1,126,000	Quanta Computer, Inc.		2,221,450
	1,538,788	Shin Kong Financial Holding Co. Ltd.*		674,330
	930,000	Siliconware Precision Industries Co.		1,240,498
	1,761,000	SinoPac Financial Holdings Co. Ltd.		836,273
	292,000	Synnex Technology International Corp.		745,332
	1,191,320	Taishin Financial Holding Co. Ltd.*		700,936
	1,091,089	Taiwan Cement Corp.		1,598,240
	874,100	Taiwan Cooperative Bank		732,524
	381,000	Taiwan Mobile Co. Ltd.		983,149
	4,472,000	Taiwan Semiconductor Manufacturing Co. Ltd.		11,430,431
	1,750,556	Tatung Co. Ltd.*		877,158
	627,000	Teco Electric & Machinery Co. Ltd.		443,345
	254,000	Unimicron Technology Corp.		418,182
	1,080,100	Uni-President Enterprises Corp.		1,553,857
	4,083,000	United Microelectronics Corp.		2,117,169
	1,185,000	Walsin Lihwa Corp.*		686,873
	720,096	Wistron Corp.		1,294,933
	269,000	WPG Holdings Ltd.		496,887
	1,054,000	Yuanta Financial Holding Co. Ltd.		732,392
				100,753,259
		Thailand—1.5%
	374,600	Advanced Info. Service PCL		1,160,821
	73,200	Bangkok Bank PCL		416,884
	2,598,900	IRPC PCL		539,805
	150,200	Kasikornbank PCL		654,137
	160,400	PTT Exploration & Production PCL		994,104
	205,800	PTT PCL		2,585,427
	54,800	Siam Cement PCL		760,040
	210,500	Siam Commercial Bank PCL		818,024
	236,200	Thai Oil PCL		668,640
				8,597,882
		Turkey—2.2%
	227,266	Akbank TAS		1,181,846
	689,625	Dogan Sirketler Grubu Holdings*		549,285
	253,983	Eregli Demir ve Celik Fabrikalari TAS*		774,078
	53,894	Eregli Demir ve Celik Fabrikalari TAS*		153,968

See Notes to Financial Statements.

53

Schedule of Investments (Continued)

PowerShares FTSE RAFI Emerging Markets Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	122,697	Haci Omer Sabanci Holding AS	$	657,442
	408,073	Koc Holding AS		2,197,306
	43,830	Tupras Turkiye Petrol Rafine AS		1,425,272
	254,918	Turk Hava Yollari AO*		753,436
	130,669	Turk Telekomunikasyon AS		681,235
	80,309	Turkcell Iletisim Hizmet AS		474,723
	177,958	Turkiye Garanti Bankasi AS		923,088
	58,645	Turkiye Halk Bankasi AS		507,640
	337,152	Turkiye Is Bankasi, Class C		1,194,008
	177,794	Turkiye Vakiflar Bankasi TAO, Class D		472,822
	141,130	Yapi ve Kredi Bankasi AS*		444,994
				12,391,143
		Total Common Stocks and Other Equity Interests (Cost $443,734,871)		541,773,866
		Preferred Stocks—4.2%
		Brazil—4.2%
	19,700	AES Tiete SA		325,015
	24,948	Cia Brasileira de Distribuicao Grupo Pao de Acucar		1,107,108
	81,500	Cia de Bebidas das Americas		2,596,974
	107,521	Cia Energetica de Minas Gerais		2,188,837
	183,617	Gerdau SA		2,188,835
	750,547	Petroleo Brasileiro SA		12,196,568
	150,700	Tele Norte Leste Participacoes SA		2,518,852
	107,523	Tim Participacoes SA		488,088
		Total Preferred Stocks (Cost $22,145,346)		23,610,277

Number of Shares			Value
		Rights—0.0%
		Brazil—0.0%
	131	Cia Brasileira de Distribuicao Grupo Pao de Acucar, expiring 05/03/11*	$	614
	89	Tim Participacoes SA, expiring 05/12/11*		13
	35	Tim Participacoes SA, expiring 05/12/11*		13
		Total Rights (Cost $0)		640
		Total Investments (Cost $465,880,217)—99.8%		565,384,783
		Other assets less liabilities—0.2%		1,025,292
		Net Assets—100.0%	$	566,410,075

Investment Abbreviations:

ADR—American Depositary Receipt

CPO—Ordinary Participation Certificate

GDR—Global Depositary Receipt

Notes to Schedule of Investments:

*  Non-income producing security.

See Notes to Financial Statements.

54

Portfolio Composition

PowerShares Global Agriculture Portfolio

Industry Breakdown (% of the Fund's Net Assets) as of April 30, 2011 (Unaudited)

Agricultural Chemicals	47.2
Agricultural Operations	24.8
Chemicals - Diversified	13.8
Food - Miscellaneous/Diversified	5.3
Sugar	3.2
Investment Companies	2.6
Transportation - Services	1.2
Consumer Products - Miscellaneous	1.0
Alternative Waste Technologies	0.5
Food - Wholesale/Distribution	0.4
Other assets less liabilities	0.0

Schedule of Investments

PowerShares Global Agriculture Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Common Stocks—100.0%
		Australia—2.6%
	79,307	GrainCorp Ltd.	$	678,695
	651,326	Incitec Pivot Ltd.		2,680,049
	104,642	Nufarm Ltd.*		553,108
				3,911,852
		Brazil—1.7%
	162,800	Cosan SA Industria e Comercio		2,490,284
		Canada—12.8%
	63,184	Agrium, Inc.		5,710,765
	208,778	Potash Corp. of Saskatchewan, Inc.		11,760,746
	148,621	Viterra, Inc.		1,780,915
				19,252,426
		Chile—4.2%
	105,252	Sociedad Quimica y Minera de Chile SA, Class B		6,361,573
		China—1.0%
	1,844,000	China Bluechemical Ltd., H-Shares		1,500,345
		Denmark—1.7%
	19,072	Danisco A/S		2,534,510
		Germany—5.6%
	75,653	K+S AG		6,131,606
	75,723	Suedzucker AG		2,339,536
				8,471,142
		Hong Kong—2.6%
	1,334,960	Chaoda Modern Agriculture (Holdings) Ltd.		830,097
	1,615,000	China Agri-Industries Holdings Ltd.		1,842,126

Number of Shares			Value
		Common Stocks (Continued)
	2,808,000	Sinofert Holdings Ltd.*	$	1,171,265
				3,843,488
		Indonesia—1.1%
	629,500	PT Astra Agro Lestari Tbk		1,701,649
		Israel—7.6%
	373,654	Israel Chemicals Ltd.		6,610,204
	3,078	Israel Corp. Ltd. (The)		3,823,517
	183,656	Makhteshim-Agan Industries Ltd.*		991,601
				11,425,322
		Malaysia—7.6%
	303,300	Genting Plantations Bhd		819,176
	2,669,500	IOI Corp. Bhd		4,767,608
	426,800	Kuala Lumpur Kepong Bhd		3,043,220
	474,100	PPB Group Bhd		2,717,832
				11,347,836
		Netherlands—0.7%
	14,044	Nutreco NV		1,094,915
		Norway—4.5%
	115,719	Yara International ASA		6,787,576
		Singapore—8.7%
	4,853,760	Golden Agri-Resources Ltd.		2,640,827
	2,405,000	Wilmar International Ltd.		10,369,687
				13,010,514
		South Africa—0.2%
	16,850	Astral Foods Ltd.		343,283

See Notes to Financial Statements.

55

Schedule of Investments (Continued)

PowerShares Global Agriculture Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Common Stocks (Continued)
		Switzerland—8.3%
	35,415	Syngenta AG*	$	12,482,620
		Taiwan—0.9%
	391,000	Taiwan Fertilizer Co. Ltd.		1,318,875
		United States—28.2%
	158,981	Archer-Daniels-Midland Co.		5,885,477
	57,896	Bunge Ltd.		4,367,674
	28,512	CF Industries Holdings, Inc.		4,035,874
	30,468	Corn Products International, Inc.		1,678,787
	46,689	Darling International, Inc.*		754,961
	23,773	Fresh Del Monte Produce, Inc.		644,486
	30,043	Intrepid Potash, Inc.*		1,029,273
	167,686	Monsanto Co.		11,409,355
	147,607	Mosaic Co. (The)		11,049,860
	26,433	Scotts Miracle-Gro Co. (The), Class A		1,492,672
				42,348,419
		Total Investments (Cost $133,624,650)—100.0%		150,226,629
		Other assets less liabilities—0.0%		15
		Net Assets—100.0%	$	150,226,644

Notes to Schedule of Investments:

*  Non-income producing security.

See Notes to Financial Statements.

56

Portfolio Composition

PowerShares Global Clean Energy Portfolio

Industry Breakdown (% of the Fund's Net Assets) as of April 30, 2011 (Unaudited)

Energy - Alternate Sources	23.9
Power Conversion/Supply Equipment	13.9
Electronic Components - Semiconductors	11.3
Electric - Integrated	5.3
Batteries/Battery Systems	4.0
Building & Construction Products - Miscellaneous	3.5
Auto - Cars/Light Trucks	2.8
Diversified Manufacturing Operations	2.3
Auto/Truck Parts & Equipment - Original	2.2
Electric - Generation	1.9
Lighting Products & Systems	1.9
Electronic Measuring Instruments	1.9
Engineering/R&D Services	1.7
Independent Power Producer	1.7
Machinery Tools & Related Products	1.6
Sugar	1.6
Machinery - Electrical	1.5
Metal - Diversified	1.5
Semiconductor Equipment	1.5
Semiconductor Components - Integrated Circuits	1.4
Medical - Biomedical/Genetics	1.4
Building - Heavy Construction	1.4
Advanced Materials/Products	1.3
Filtration/Separation Products	1.2
Electronic Components - Miscellaneous	1.1
Miscellaneous Manufacturing	1.0
Electric - Distribution	0.9
Chemicals - Specialty	0.8
Computers - Integrated Systems	0.7
Superconductor Products & Systems	0.7
Instruments - Scientific	0.6
Instruments - Controls	0.4
Metal Processors & Fabricators	0.4
Chemicals - Fibers	0.4
Aerospace/Defense	0.3
Other assets less liabilities	0.0

Schedule of Investments

PowerShares Global Clean Energy Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Austria—1.7%
	80,310	Verbund AG	$	3,636,991
		Belgium—0.4%
	1,067,488	Hansen Transmissions International NV*		885,807

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
		Bermuda—1.7%
	11,436,000	Apollo Solar Energy Technology Holdings Ltd.*	$	809,748
	26,540,000	China WindPower Group Ltd.*		2,767,573
				3,577,321

See Notes to Financial Statements.

57

Schedule of Investments (Continued)

PowerShares Global Clean Energy Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
		Brazil—1.9%
	1,493,200	Brasil Ecodiesel Industria e Comercio de Biocombustiveis e Oleos Vegetais SA*	$	759,464
	168,400	Cosan SA Industria e Comercio		2,575,945
	51,700	Sao Martinho SA		795,435
				4,130,844
		Cayman Islands—6.5%
	276,420	China Ming Yang Wind Power Group Ltd. ADS*		2,379,976
	5,222,000	GCL Poly Energy Holdings Ltd.*		3,731,152
	2,119,000	Neo-Neon Holdings Ltd.		777,480
	105,396	Trina Solar Ltd. ADR*		3,002,732
	4,793,000	Trony Solar Holdings Co. Ltd.*		3,011,206
	1,810,000	Wasion Group Holdings Ltd.		943,728
				13,846,274
		China—11.6%
	634,200	BYD Co. Ltd., H-Shares*		2,294,276
	10,027,000	China Datang Corp. Renewable Power Co. Ltd., Class H*		2,917,377
	1,761,000	China High Speed Transmission Equipment Group Co. Ltd.		2,330,589
	2,778,000	China Longyuan Power Group Corp., H-Shares		2,853,963
	9,758,000	China Suntien Green Energy Corp. Ltd., H-Shares*		3,002,423
	448,380	JA Solar Holdings Co. Ltd. ADR*		3,080,371
	328,610	Suntech Power Holdings Co. Ltd. ADR*		2,947,632
	1,588,400	Xinjiang Goldwind Science & Technology Co. Ltd., H-Shares*		2,196,227
	240,980	Yingli Green Energy Holding Co. Ltd. ADR*		3,019,479
				24,642,337
		Denmark—4.1%
	17,622	Novozymes A/S, Class B		3,049,972
	24,591	Rockwool International A/S, Class B		3,255,709
	68,689	Vestas Wind Systems A/S*		2,443,296
				8,748,977
		Finland—1.3%
	79,566	Fortum Oyj		2,745,707
		France—4.1%
	54,975	EDF Energies Nouvelles SA		3,275,487
	57,664	Saft Groupe SA		2,652,060
	97,313	Sechilienne-Sidec		2,851,378
				8,778,925
		Germany—7.0%
	51,752	Centrotherm Photovoltaics AG*		3,138,353
	53,673	Elster Group SE ADR*		830,858

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	67,731	Nordex SE*	$	682,097
	25,297	Phoenix Solar AG		819,106
	188,793	Q-Cells SE*		805,268
	34,623	Roth & Rau AG*		1,189,653
	25,876	SMA Solar Technology AG		3,089,982
	31,095	Solar Millennium AG*		953,791
	200,298	Solarworld AG		3,219,752
				14,728,860
		Ireland—1.5%
	323,366	Kingspan Group PLC		3,166,323
		Italy—2.0%
	1,394,181	Enel Green Power SpA*		4,140,951
		Japan—3.8%
	363,000	GS Yuasa Corp.		2,469,510
	769,000	Meidensha Corp.		3,269,719
	37,900	NPC, Inc.		736,607
	231,000	Takuma Co. Ltd.*		834,151
	63,200	Tanaka Chemical Corp.		696,337
				8,006,324
		New Zealand—1.9%
	818,138	Contact Energy Ltd.*		3,930,602
		Norway—1.5%
	875,066	Renewable Energy Corp. ASA*		3,093,351
		Philippines—1.9%
	25,480,050	Energy Development Corp.		4,017,527
		South Korea—1.4%
	76,478	Seoul Semiconductor Co. Ltd.		2,287,239
	17,669	Taewoong Co. Ltd.*		779,866
				3,067,105
		Spain—6.8%
	83,278	Abengoa SA		2,779,903
	25,434	Acciona SA		2,963,620
	392,418	EDP Renovaveis SA*		3,027,396
	285,159	Gamesa Corp. Tecnologica SA*		2,685,174
	652,519	Iberdrola Renovables SA		2,992,327
				14,448,420
		Switzerland—2.1%
	1,172	Gurit Holding AG*		909,584
	70,072	Meyer Burger Technology AG*		3,489,681
				4,399,265
		Taiwan—1.6%
	803,000	Epistar Corp.		2,660,918
	328,825	Neo Solar Power Corp.*		733,695
				3,394,613

See Notes to Financial Statements.

58

Schedule of Investments (Continued)

PowerShares Global Clean Energy Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
		Turkey—0.5%
	499,296	Aydiner Enerji A.S.	$	1,061,598
		United Kingdom—0.4%
	937,976	PV Crystalox Solar PLC		844,829
		United States—34.3%
	68,122	A.O. Smith Corp.		2,995,324
	302,537	A123 Systems, Inc.*		1,827,323
	183,270	Advanced Battery Technologies, Inc.*		315,224
	24,279	Aerovironment, Inc.*		695,593
	60,927	Ameresco, Inc., Class A*		981,534
	116,132	American Superconductor Corp.*		1,376,164
	89,596	Amyris, Inc.*		2,368,022
	582,831	Broadwind Energy, Inc.*		961,671
	156,356	Covanta Holding Corp.		2,684,633
	65,358	Cree, Inc.*		2,662,685
	90,829	Echelon Corp.*		863,784
	225,848	Ener1, Inc.*		571,395
	44,405	EnerNOC, Inc.*		795,294
	19,463	First Solar, Inc.*		2,716,451
	61,852	Fuel Systems Solutions, Inc.*		1,838,551
	761,849	FuelCell Energy, Inc.*		1,302,762
	42,499	Gevo, Inc.*		822,356
	272,872	GT Solar International, Inc.*		3,047,980
	90,976	International Rectifier Corp.*		3,144,131
	55,285	Itron, Inc.*		3,009,163
	70,805	Johnson Controls, Inc.		2,903,005
	25,916	LSB Industries, Inc.*		1,045,711
	39,997	Maxwell Technologies, Inc.*		713,147
	226,796	MEMC Electronic Materials, Inc.*		2,682,997
	43,056	Molycorp, Inc.*		3,156,005
	142,602	Ormat Technologies, Inc.		3,550,790
	41,620	Polypore International, Inc.*		2,570,867
	76,077	Power Integrations, Inc.		3,068,946
	348,132	Power-One, Inc.*		2,875,570
	31,234	Rubicon Technology, Inc.*		890,481
	167,258	STR Holdings, Inc.*		2,754,739
	178,532	SunPower Corp., Class A*		3,886,642
	128,847	Tesla Motors, Inc.*		3,556,177
	58,265	Universal Display Corp.*		3,201,079
	59,367	Zoltek Cos., Inc.*		762,866
				72,599,062
		Total Investments (Cost $193,632,855)—100.0%		211,892,013
		Other assets less liabilities—0.0%		48,393
		Net Assets—100.0%	$	211,940,406

Investment Abbreviations:

ADR—American Depositary Receipt

ADS—American Depositary Shares

Notes to Schedule of Investments:

*  Non-income producing security.

See Notes to Financial Statements.

59

Portfolio Composition

PowerShares Global Coal Portfolio

Industry Breakdown (% of the Fund's Net Assets) as of April 30, 2011 (Unaudited)

Coal	84.3
Non-Ferrous Metals	11.4
Diversified Minerals	4.3
Other assets less liabilities	0.0

Schedule of Investments

PowerShares Global Coal Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Australia—16.8%
	101,627	Aquila Resources Ltd.*	$	1,009,837
	22,986	Coal & Allied Industries Ltd.		2,807,017
	51,785	Energy Resources of Australia Ltd.		308,857
	65,938	Extract Resources Ltd.*		482,024
	225,404	New Hope Corp. Ltd.		1,208,688
	211,076	Paladin Energy Ltd.*		762,271
	133,997	Whitehaven Coal Ltd.		941,427
				7,520,121
		Bermuda—0.9%
	1,794,000	Mongolia Energy Co. Ltd.*		422,656
		Canada—8.6%
	94,502	Cameco Corp.		2,781,726
	259,873	Uranium One, Inc.		1,079,095
				3,860,821
		China—19.5%
	1,115,000	China Coal Energy Co. Ltd., H-Shares		1,553,157
	820,500	China Shenhua Energy Co. Ltd., H-Shares		3,829,127
	180,300	Inner Mongolia Yitai Coal Co. Ltd., Class B*		1,257,953
	532,000	Yanzhou Coal Mining Co. Ltd., H-Shares		2,075,235
				8,715,472
		Indonesia—16.0%
	6,784,000	PT Adaro Energy Tbk		1,742,737
	5,227,000	PT Bumi Resources Tbk		2,090,434
	307,000	PT Indo Tambangraya Megah		1,677,674
	625,500	PT Tambang Batubara Bukit Asam Tbk		1,628,754
				7,139,599
		Singapore—1.7%
	307,000	Straits Asia Resources Ltd.		740,970

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
		Thailand—4.1%
	73,800	Banpu PCL	$	1,844,382
		United States—32.4%
	9,951	Alliance Resource Partners LP		819,564
	32,711	Alpha Natural Resources, Inc.*		1,902,799
	44,111	Arch Coal, Inc.		1,513,007
	60,061	CONSOL Energy, Inc.		3,248,700
	55,341	International Coal Group, Inc.*		610,411
	28,088	Massey Energy Co.		1,916,725
	24,790	Patriot Coal Corp.*		624,212
	55,525	Peabody Energy Corp.		3,710,181
	32,973	USEC, Inc.*		151,016
				14,496,615
		Total Investments (Cost $37,395,026)—100.0%		44,740,636
		Other assets less liabilities—0.0%		16,519
		Net Assets—100.0%	$	44,757,155

Notes to Schedule of Investments:

*  Non-income producing security.

See Notes to Financial Statements.

60

Portfolio Composition

PowerShares Global Gold and Precious Metals Portfolio

Industry Breakdown (% of the Fund's Net Assets) as of April 30, 2011 (Unaudited)

Gold Mining	69.7
Platinum	13.3
Silver Mining	12.2
Non-Ferrous Metals	3.4
Precious Metals	0.9
Diamonds/Precious Stones	0.3
Diversified Minerals	0.2
Money Market Fund	0.1
Liabilities in excess of other assets	(0.1	)

Schedule of Investments

PowerShares Global Gold and Precious Metals Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Australia—8.3%
	20,374	Kingsgate Consolidated Ltd.	$	173,019
	114,117	Newcrest Mining Ltd.		5,176,442
	63,639	Perseus Mining Ltd.*		204,055
	49,001	St Barbara Ltd.*		119,046
				5,672,562
		Bermuda—0.6%
	69,976	Aquarius Platinum Ltd.		401,738
		Canada—45.9%
	25,511	Agnico-Eagle Mines Ltd.		1,772,340
	41,447	Alacer Gold Corp.*		431,134
	17,589	Alamos Gold, Inc.		294,370
	24,495	Aurizon Mines Ltd.*		166,510
	101,485	Barrick Gold Corp.		5,168,104
	35,630	Centerra Gold, Inc.		660,893
	14,787	Colossus Minerals, Inc.*		133,712
	12,614	Detour Gold Corp.*		425,142
	137,169	Eastern Platinum Ltd.*		166,248
	82,818	Eldorado Gold Corp.		1,537,045
	27,748	European Goldfields Ltd.*		384,849
	17,307	Franco-Nevada Corp.		684,364
	52,628	Gabriel Resources Ltd.*		400,458
	24,883	Gammon Gold, Inc.*		271,422
	107,666	Goldcorp, Inc.		6,001,428
	39,058	Golden Star Resources Ltd.*		125,960
	68,278	Great Basin Gold Ltd.*		180,616
	12,322	Guyana Goldfields, Inc.*		121,421
	12,713	Harry Winston Diamond Corp.*		215,713
	56,582	IAMGOLD Corp.		1,172,965
	170,472	Kinross Gold Corp.		2,694,925
	57,321	Lake Shore Gold Corp.*		245,269

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	12,046	Minefinders Corp.*	$	201,983
	29,688	Nevsun Resources Ltd.*		192,737
	60,288	New Gold, Inc.*		675,409
	44,091	Northgate Minerals Corp.*		131,504
	35,244	NovaGold Resources, Inc.*		452,413
	57,682	Osisko Mining Corp.*		841,962
	16,284	Pan American Silver Corp.		585,733
	32,376	Rubicon Minerals Corp.*		167,536
	6,240	Seabridge Gold, Inc.*		210,970
	41,130	SEMAFO, Inc.*		348,512
	12,066	Silver Standard Resources, Inc.*		418,498
	53,294	Silver Wheaton Corp.		2,162,427
	26,388	Silvercorp Metals, Inc.		358,199
	112,013	Yamana Gold, Inc.		1,423,699
				31,426,470
		China—2.2%
	220,500	Zhaojin Mining Industry Co. Ltd., H-Shares		1,020,518
	606,000	Zijin Mining Group Co. Ltd., H-Shares		476,680
				1,497,198
		Jersey Islands—1.7%
	13,748	Randgold Resources Ltd.*		1,196,998
		Mexico—3.4%
	60,045	Industrias Penoles SAB de CV		2,332,653
		Russia—1.7%
	60,330	Polymetal GDR*		1,154,716
		South Africa—18.9%
	39,295	Anglo American Platinum Ltd.		3,978,893
	54,833	AngloGold Ashanti Ltd.		2,770,119
	106,395	Gold Fields Ltd.		1,894,281

See Notes to Financial Statements.

61

Schedule of Investments (Continued)

PowerShares Global Gold and Precious Metals Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	64,773	Harmony Gold Mining Co. Ltd.	$	974,958
	90,051	Impala Platinum Holdings Ltd.		2,802,884
	32,472	Mvelaphanda Resources Ltd.*		20,359
	54,363	Northam Platinum Ltd.		357,347
	27,121	Northam Platinum Ltd.		178,276
				12,977,117
		United Kingdom—7.4%
	61,948	African Barrick Gold Ltd.		544,529
	101,443	Fresnillo PLC		2,776,604
	51,071	Hochschild Mining PLC		519,622
	30,559	Lonmin PLC		831,845
	28,378	Petropavlovsk PLC		422,685
				5,095,285
		United States—9.9%
	13,444	Allied Nevada Gold Corp.*		578,899
	13,491	Coeur d'Alene Mines Corp.*		427,800
	42,166	Hecla Mining Co.*		396,782
	73,743	Newmont Mining Corp.		4,322,077
	8,128	Royal Gold, Inc.		495,645
	15,434	Stillwater Mining Co.*		352,049
	20,052	US Gold Corp.*		188,489
				6,761,741
		Total Common Stocks and Other Equity Interests (Cost $50,069,651)		68,516,478
		Money Market Fund—0.1%
	48,346	Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $48,346)		48,346
		Total Investments (Cost $50,117,997)—100.1%		68,564,824
		Liabilities in excess of other assets—(0.1)%		(61,333	)
		Net Assets—100.0%	$	68,503,491

Investment Abbreviations:

GDR—Global Depositary Receipt

Notes to Schedule of Investments:

*  Non-income producing security.

See Notes to Financial Statements.

62

Portfolio Composition

PowerShares Global Nuclear Energy Portfolio

Industry Breakdown (% of the Fund's Net Assets) as of April 30, 2011 (Unaudited)

Electric - Integrated	24.0
Engineering/R&D Services	12.1
Non-Ferrous Metals	10.5
Energy - Alternate Sources	7.9
Electric Products - Miscellaneous	7.4
Diversified Manufacturing Operations	7.3
Machinery - General Industrial	5.3
Metal - Copper	5.1
Electronic Components - Miscellaneous	4.5
Instruments - Scientific	3.4
Auto/Truck Parts & Equipment - Original	2.4
Consulting Services	2.4
Machinery - Pumps	1.7
Wire & Cable Products	1.1
Building - Heavy Construction	1.0
Transportation - Marine	0.7
Chemicals - Specialty	0.6
Machinery - Material Handling	0.6
Electronic Measuring Instruments	0.4
Aerospace/Defense - Equipment	0.4
Semiconductor Equipment	0.4
Environmental Monitoring and Detection	0.3
Metal Processors & Fabricators	0.2
Research and Development	0.1
Protection - Safety	0.1
Commercial Services	0.1
Other assets less liabilities	0.0

Schedule of Investments

PowerShares Global Nuclear Energy Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Australia—3.1%
	37,652	Energy Resources of Australia Ltd.	$	224,565
	195,577	Paladin Energy Ltd.*		706,298
	9,850	Silex Systems Ltd.*		43,656
				974,519
		Canada—11.4%
	25,732	Cameco Corp.		757,438
	188,115	Denison Mines Corp.*		436,163
	185,395	Equinox Minerals Ltd.*		1,582,652
	97,646	UEX Corp.*		100,851
	159,485	Uranium One, Inc.		662,245
				3,539,349
		France—9.9%
	52,196	Areva SA CI		2,409,871

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	15,543	Electricite de France SA	$	655,469
				3,065,340
		Germany—5.7%
	31,106	E.ON AG		1,065,116
	7,602	RWE AG		496,867
	3,612	SGL Carbon SE*		192,915
				1,754,898
		India—1.9%
	15,758	Larsen & Toubro Ltd. GDR		587,931
		Japan—21.9%
	134,000	Hitachi Ltd.		723,342
	3,000	Hokkaido Electric Power Co., Inc.		54,314
	3,400	Hokuriku Electric Power Co.		68,721

See Notes to Financial Statements.

63

Schedule of Investments (Continued)

PowerShares Global Nuclear Energy Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	209,000	IHI Corp.	$	525,462
	24,000	Japan Steel Works Ltd. (The)		192,260
	25,000	JGC Corp.		615,911
	25,800	Kansai Electric Power Co., Inc. (The)		541,183
	14,600	Kyushu Electric Power Co., Inc.		269,184
	125,000	Mitsubishi Heavy Industries Ltd.		593,111
	4,700	Shikoku Electric Power Co., Inc.		118,977
	53,800	Sumitomo Electric Industries Ltd.		743,281
	32,200	Tokyo Electric Power Co., Inc. (The)		168,659
	266,000	Toshiba Corp.		1,399,828
	3,000	Toshiba Plant Systems & Services Corp.		33,793
	146,000	Toyo Engineering Corp.		584,792
	16,300	Yokogawa Electric Corp.*		131,380
				6,764,198
		Netherlands—1.0%
	7,461	Chicago Bridge & Iron Co. NV		302,469
		South Korea—3.7%
	9,148	Doosan Heavy Industries and Construction Co. Ltd.		510,475
	6,599	KEPCO Engineering & Construction, Inc.		431,045
	8,630	Korea Electric Power Corp.*		206,157
				1,147,677
		Switzerland—0.1%
	298	BKW FMB Energie AG*		19,730
		United Kingdom—1.1%
	37,147	Serco Group PLC		350,380
		United States—40.2%
	12,089	AMETEK, Inc.		556,578
	3,535	Belden, Inc.		134,436
	1,287	CIRCOR International, Inc.		58,468
	11,156	Constellation Energy Group, Inc.		406,302
	3,472	Curtiss-Wright Corp.		115,444
	37,682	Duke Energy Corp.		702,769
	16,449	Emerson Electric Co.		999,441
	3,700	Entergy Corp.		257,964
	22,840	Exelon Corp.		962,706
	4,686	Federal Signal Corp.		31,630
	13,898	FirstEnergy Corp.		555,364
	4,217	Flowserve Corp.		533,957
	7,899	Fluor Corp.		552,456
	3,929	General Cable Corp.*		190,557
	39,921	General Electric Co.		816,384
	4,032	Kirby Corp.*		228,937
	709	Landauer, Inc.		42,661
	6,863	Lightbridge Corp.*		34,658
	17,591	McDermott International, Inc.*		406,176
	2,326	Mine Safety Appliances Co.		92,296

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	3,792	MKS Instruments, Inc.	$	107,617
	6,018	NextEra Energy, Inc.		340,438
	11,586	Parker Hannifin Corp.		1,092,792
	11,164	Progress Energy, Inc.		529,732
	22,178	SAIC, Inc.*		385,897
	13,645	Shaw Group, Inc. (The)*		530,791
	3,782	SPX Corp.		326,954
	1,457	Team, Inc.*		36,352
	17,680	Thermo Fisher Scientific, Inc.*		1,060,623
	75,842	USEC, Inc.*		347,356
				12,437,736
		Total Investments (Cost $30,769,030)—100.0%		30,944,227
		Other assets less liabilities—0.0%		10,657
		Net Assets—100.0%	$	30,954,884

Investment Abbreviations:

GDR—Global Depositary Receipt

Notes to Schedule of Investments:

*  Non-income producing security.

See Notes to Financial Statements.

64

Portfolio Composition

PowerShares Global Steel Portfolio

Industry Breakdown (% of the Fund's Net Assets) as of April 30, 2011 (Unaudited)

Steel - Producers	67.7
Metal - Iron	17.2
Diversified Minerals	8.0
Steel - Specialty	3.5
Metal Processors & Fabricators	1.7
Diversified Manufacturing Operations	1.0
Steel Pipe & Tube	0.5
Machinery - General Industrial	0.3
Other assets less liabilities	0.1

Schedule of Investments

PowerShares Global Steel Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—99.9%
		Australia—6.9%
	12,439	Atlas Iron Ltd.*	$	47,644
	28,546	BlueScope Steel Ltd.		54,044
	48,551	Fortescue Metals Group Ltd.		326,761
	16,934	Mount Gibson Iron Ltd.*		34,840
	20,879	OneSteel Ltd.		48,668
	3,143	Sims Metal Management Ltd.		60,054
				572,011
		Austria—1.6%
	2,637	Voestalpine AG		129,985
		Brazil—15.1%
	20,500	Cia Siderurgica Nacional SA		320,097
	8,900	Gerdau SA		86,799
	9,100	MMX Mineracao e Metalicos SA*		57,855
	7,900	Usinas Siderurgicas de Minas Gerais SA		128,327
	20,200	Vale SA		662,802
				1,255,880
		Canada—0.8%
	3,743	Consolidated Thompson Iron Mines Ltd.*		67,535
		Chile—1.5%
	2,331	CAP SA		125,421
		China—1.3%
	16,000	Angang Steel Co. Ltd., H-Shares		20,537
	99,500	Fosun International		78,523
	26,000	Maanshan Iron & Steel Co. Ltd., H-Shares		13,690
				112,750
		Finland—1.3%
	2,856	Outokumpu Oyj		47,626

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	2,190	Rautaruukki Oyj	$	56,891
				104,517
		Germany—5.4%
	938	Salzgitter AG		73,769
	8,049	ThyssenKrupp AG		370,963
				444,732
		Hong Kong—0.2%
	128,000	Shougang Concord International Enterprises Co. Ltd.*		16,973
		Japan—13.8%
	7,000	Daido Steel Co. Ltd.		39,771
	6,000	Hitachi Metals Ltd.		78,531
	9,600	JFE Holdings, Inc.		261,001
	49,000	Kobe Steel Ltd.		120,175
	1,500	Maruichi Steel Tube Ltd.		37,250
	105,000	Nippon Steel Corp.		326,103
	16,000	Nisshin Steel Co. Ltd.		31,550
	3,000	Sanyo Special Steel Co. Ltd.		16,601
	75,000	Sumitomo Metal Industries Ltd.		157,136
	2,400	Tokyo Steel Manufacturing Co. Ltd.		25,822
	1,100	Yamato Kogyo Co. Ltd.		36,169
	3,000	Yodogawa Steel Works Ltd.		12,608
				1,142,717
		Luxembourg—9.6%
	18,680	ArcelorMittal		688,407
	3,127	Ternium SA ADR		105,130
				793,537
		Mexico—0.3%
	6,700	Industrias CH SAB de CV, Series B*		26,505

See Notes to Financial Statements.

65

Schedule of Investments (Continued)

PowerShares Global Steel Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
		Russia—9.3%
	6,832	Evraz Group SA GDR*	$	231,605
	6,498	Mechel ADR		185,648
	9,238	Novolipetsk Steel OJSC GDR		352,522
				769,775
		South Africa—5.3%
	6,957	ArcelorMittal South Africa Ltd.		94,841
	4,718	Kumba Iron Ore Ltd.		343,809
				438,650
		South Korea—9.6%
	950	Dongkuk Steel Mill Co. Ltd.		37,764
	1,335	Hyundai Steel Co.		169,421
	1,345	POSCO		587,375
				794,560
		Spain—0.9%
	3,890	Acerinox SA		78,286
		Sweden—1.1%
	538	Hoganas AB, Class B*		22,404
	3,756	SSAB AB, Class A		67,301
				89,705
		Taiwan—3.6%
	210,738	China Steel Corp.		260,493
	9,000	Feng Hsin Iron & Steel Co. Ltd.		16,404
	15,495	Tung Ho Steel Enterprise Corp.		18,288
				295,185
		Turkey—1.2%
	33,501	Eregli Demir ve Celik Fabrikalari TAS*		102,103
		United States—11.1%
	1,721	AK Steel Holding Corp.		27,966
	1,542	Allegheny Technologies, Inc.		111,024
	688	Carpenter Technology Corp.		35,267
	2,115	Cliffs Natural Resources, Inc.		198,218
	1,785	Commercial Metals Co.		29,917
	4,931	Nucor Corp.		231,560
	1,164	Reliance Steel & Aluminum Co.		65,894
	430	Schnitzer Steel Industries, Inc., Class A		26,690
	3,400	Steel Dynamics, Inc.		61,846
	2,243	United States Steel Corp.		107,013
	1,157	Worthington Industries, Inc.		24,956
				920,351
		Total Investments (Cost $7,886,698)—99.9%		8,281,178
		Other assets less liabilities—0.1%		8,315
		Net Assets—100.0%	$	8,289,493

Investment Abbreviations:

ADR—American Depositary Receipt

GDR—Global Depositary Receipt

Notes to Schedule of Investments:

*  Non-income producing security.

See Notes to Financial Statements.

66

Portfolio Composition

PowerShares Global Water Portfolio

Industry Breakdown (% of the Fund's Net Assets) as of April 30, 2011 (Unaudited)

Water	21.3
Environmental Control	20.7
Machinery - Diversified	13.5
Miscellaneous Manufacturing	7.4
Electronics	7.1
Building Materials	5.6
Chemicals	4.8
Commercial Services	4.6
Metal Fabricate/Hardware	4.5
Engineering & Construction	4.4
Miscellaneous Manufacturing	4.1
Holding Companies - Diversified	2.0
Other assets less liabilities	0.0

Schedule of Investments

PowerShares Global Water Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Common Stocks—100.0%
		Brazil—2.0%
	263,600	Cia de Saneamento Basico do Estado de Sao Paulo	$	7,678,906
		Canada—6.0%
	692,820	GLV, Inc., Class A*		5,622,294
	552,798	Stantec, Inc.*		17,373,069
				22,995,363
		Finland—8.9%
	997,134	Kemira Oyj		18,269,951
	800,623	Uponor Oyj		15,643,386
				33,913,337
		France—9.3%
	781,820	Suez Environnement Co.		18,048,174
	514,969	Veolia Environnement		17,232,204
				35,280,378
		Germany—4.0%
	16,908	KSB AG		15,092,218
		Hong Kong—2.0%
	14,685,909	Guangdong Investment Ltd.		7,600,463
		Japan—12.3%
	2,584,000	Ebara Corp.		14,490,017
	546,388	Kurita Water Industries Ltd.		15,891,985
	2,278,000	Organo Corp.		16,395,761
				46,777,763

Number of Shares			Value
		Common Stocks (Continued)
		Malaysia—1.7%
	9,381,800	Puncak Niaga Holding Bhd	$	6,619,839
		Netherlands—6.1%
	652,599	Arcadis NV		16,875,657
	358,380	Wavin NV*		6,422,848
				23,298,505
		Singapore—6.3%
	9,413,000	Hyflux Ltd.		16,557,946
	12,282,928	Sound Global Ltd.*		7,537,080
				24,095,026
		Switzerland—3.9%
	64,019	Geberit AG		14,927,569
		United Kingdom—9.8%
	2,259,397	Halma PLC		14,075,585
	617,857	Severn Trent PLC		15,468,633
	757,729	United Utilities Group PLC		7,981,243
				37,525,461
		United States—27.7%
	257,765	American Water Works Co., Inc.		7,573,136
	318,537	Aqua America, Inc.		7,183,009
	236,349	Itron, Inc.*		12,864,476
	234,250	ITT Corp.		13,537,308
	583,682	Nalco Holding Co.		17,049,351
	368,053	Pentair, Inc.		14,781,008
	657,080	Tetra Tech, Inc.*		15,520,230

See Notes to Financial Statements.

67

Schedule of Investments (Continued)

PowerShares Global Water Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Common Stocks (Continued)
	162,334	Valmont Industries, Inc.	$	17,093,770
				105,602,288
		Total Investments (Cost $320,266,891)—100.0%		381,407,116
		Other assets less liabilities—0.0%		89,707
		Net Assets—100.0%	$	381,496,823

Notes to Schedule of Investments:

*  Non-income producing security.

See Notes to Financial Statements.

68

Portfolio Composition

PowerShares Global Wind Energy Portfolio

Industry Breakdown (% of the Fund's Net Assets) as of April 30, 2011 (Unaudited)

Energy - Alternate Sources	56.3
Electrical Components & Equipment	26.2
Miscellaneous Manufacturing	6.1
Chemicals	4.3
Electric	4.2
Engineering & Construction	1.6
Building Materials	1.0
Machinery - Diversified	0.3
Other assets less liabilities	0.0

Schedule of Investments

PowerShares Global Wind Energy Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Australia—2.2%
	1,280,164	Infigen Energy	$	623,422
		Belgium—3.1%
	1,085,828	Hansen Transmissions International NV*		901,026
		Bermuda—3.7%
	10,160,000	China WindPower Group Ltd.*		1,059,478
		Canada—4.8%
	131,710	Innergex Renewable Energy, Inc.		1,381,161
		Cayman Islands—3.3%
	108,982	China Ming Yang Wind Power Group Ltd. ADS*		938,335
		China—13.7%
	710,000	China High Speed Transmission Equipment Group Co. Ltd.		939,647
	2,903,000	China Longyuan Power Group Corp., H-Shares		2,982,380
				3,922,027
		Denmark—9.6%
	77,370	Vestas Wind Systems A/S*		2,752,083
		France—6.1%
	23,365	EDF Energies Nouvelles SA		1,392,119
	180,326	Theolia SA*		366,519
				1,758,638
		Germany—12.2%
	12,490	E.ON AG		427,676
	108,315	Nordex SE*		1,090,806
	6,263	Repower Systems AG		1,332,907

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	3,302	RWE AG	$	215,819
	3,033	Siemens AG		441,966
				3,509,174
		Italy—10.9%
	1,053,518	Enel Green Power SpA*		3,129,125
		Japan—0.4%
	21,000	Mitsubishi Heavy Industries Ltd.		99,643
		Spain—18.3%
	401	Acciona SA		46,725
	163,553	EDP Renovaveis SA*		1,261,766
	113,662	Gamesa Corp. Tecnologica SA*		1,070,288
	625,310	Iberdrola Renovables SA		2,867,552
				5,246,331
		Switzerland—3.3%
	14,755	ABB Ltd.*		405,722
	681	Gurit Holding AG*		528,521
				934,243
		United Kingdom—0.6%
	32,102	International Power PLC		177,018
		United States—7.8%
	4,973	AES Corp. (The)*		65,842
	40,895	American Superconductor Corp.*		484,606
	173,409	Broadwind Energy, Inc.*		286,125
	2,055	Edison International		80,700
	19,216	General Electric Co.		392,967
	2,656	NextEra Energy, Inc.		150,250
	3,049	Xcel Energy, Inc.		74,182

See Notes to Financial Statements.

69

Schedule of Investments (Continued)

PowerShares Global Wind Energy Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	55,723	Zoltek Cos., Inc.*	$	716,041
				2,250,713
		Total Investments (Cost $28,350,086)—100.0%		28,682,417
		Other assets less liabilities—0.0%		7,917
		Net Assets—100.0%	$	28,690,334

Investment Abbreviations:

ADS—American Depositary Shares

Notes to Schedule of Investments:

*  Non-income producing security.

See Notes to Financial Statements.

70

Portfolio Composition

PowerShares MENA Frontier Countries Portfolio

Industry Breakdown (% of the Fund's Net Assets) as of April 30, 2011 (Unaudited)

Banks	50.0
Telecommunications	15.8
Real Estate	11.8
Engineering & Construction	5.4
Commercial Services	3.5
Diversified Financial Services	2.1
Oil & Gas	2.0
Transportation	1.7
Holding Companies - Diversified	1.5
Electric	1.5
Building Materials	1.5
Airlines	1.0
Oil & Gas Services	0.9
Chemicals	0.4
Storage/Warehousing	0.4
Iron/Steel	0.4
Other assets less liabilities	0.1

Schedule of Investments

PowerShares MENA Frontier Countries Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—99.5%
		Egypt—17.3%
	212,212	Commercial International Bank Egypt SAE	$	978,451
	10,451	Egyptian Co. For Mobile Services		251,548
	102,914	Egyptian Financial Group-Hermes Holding SAE		302,668
	235,260	Egyptian Kuwaiti Holding Co.		298,780
	69,418	Ezz Steel*		93,616
	30,190	National Societe Generale Bank SAE		187,831
	32,903	Orascom Construction Industries		1,337,365
	911,659	Orascom Telecom Holding SAE*		649,981
	364,231	Talaat Moustafa Group*		221,099
	122,771	Telecom Egypt		337,533
				4,658,872
		Jordan—7.3%
	154,890	Arab Bank PLC		1,960,882
		Kuwait—20.3%
	71,000	Agility DGS		109,927
	75,000	Boubyan Bank KSC*		166,667
	55,000	Boubyan Petrochemicals Co.		118,215
	63,000	Burgan Bank SAK		126,230
	140,000	Gulf Bank KSC*		290,710
	173,514	Kuwait Finance House KSC		682,678
	73,000	Kuwait Projects Co. (Holding) KSC		111,694

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	334,500	Mobile Telecommunications Co. KSC	$	1,462,295
	494,081	National Bank of Kuwait SAK		2,267,912
	117,500	National Industries Group Holding*		119,854
				5,456,182
		Lebanon—2.7%
	95,319	Banque Audi sal - Audi Saradar Group GDR		714,893
		Morocco—9.6%
	5,540	Banque Centrale Populaire		285,230
	51,317	Douja Promotion Groupe Addoha SA		632,094
	1,866	Lafarge Ciments		391,585
	63,634	Maroc Telecom		1,261,143
				2,570,052
		Oman—3.5%
	350,481	Bank Muscat SAOG		702,691
	89,544	Renaissance Services SAOG		243,947
				946,638
		Qatar—20.3%
	36,365	Barwa Real Estate Co.		331,227
	31,609	Doha Bank QSC		449,014
	16,128	Gulf International Services QSC		128,510
	108,321	Masraf Al Rayan*		686,921

See Notes to Financial Statements.

71

Schedule of Investments (Continued)

PowerShares MENA Frontier Countries Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	9,855	Qatar Electricity & Water Co.	$	399,128
	15,998	Qatar International Islamic Bank		207,475
	40,150	Qatar Islamic Bank		888,055
	43,234	Qatar National Bank SAQ		1,621,497
	19,460	Qatar Navigation		457,159
	6,599	Qatar Telecom (Qtel) QSC		285,573
				5,454,559
		United Arab Emirates—18.5%
	1,344,997	Air Arabia		271,343
	914,596	Aldar Properties PJSC*		380,978
	2,252,074	Dana Gas PJSC*		416,937
	1,381,836	DP World Ltd.		925,830
	696,116	Dubai Financial Market*		259,646
	1,785,385	Emaar Properties PJSC		1,599,215
	360,750	National Bank of Abu Dhabi PJSC		1,104,938
				4,958,887
		Total Common Stocks and Other Equity Interests (Cost $25,844,117)		26,720,965
		Rights—0.4%
		Qatar—0.4%
	10,808	Qatar National Bank, expiring 5/9/2011* (Cost $0)		108,392
		Total Investments (Cost $25,844,117)—99.9%		26,829,357
		Other assets less liabilities—0.1%		36,890
		Net Assets—100.0%	$	26,866,247

Investment Abbreviations:

GDR—Global Depositary Receipt

Notes to the Schedule of Investments:

*  Non-income producing security.

See Notes to Financial Statements.

72

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Statements of Assets and Liabilities

April 30, 2011 (Unaudited)

	PowerShares DWA Developed Markets Technical Leaders Portfolio			PowerShares DWA Emerging Markets Technical Leaders Portfolio			PowerShares Dynamic Developed International Opportunities Portfolio			PowerShares Emerging Markets Infrastructure Portfolio		PowerShares FTSE RAFI Asia Pacific ex-Japan Portfolio
ASSETS:
Investments, at value	$	141,652,049		$	325,003,013		$	32,289,521		$	248,253,739	$	81,989,303
Cash		—			14,807			—			—		—
Foreign currencies, at value		169,648			67,649			130,116			205,707		52,027
Receivables:
Dividends and interest		843,345			438,198			172,107			663,213		105,337
Foreign tax reclaims		72,661			10,484			73,951			7,259		—
Investments sold		—			3,485,978			—			—		102,505
Shares sold		—			2,880,356			—			5,601,096		3,063,288
Prepaid expenses		—			—			—			—		—
Total Assets		142,737,703			331,900,485			32,665,695			254,731,014		85,312,460
LIABILITIES:
Due to custodian		619,886			—			290,914			579,743		83,378
Due to foreign custodian		—			—			—			—		—
Payables:
Investments purchased		153,553			7,040,889			31,489			4,983,161		3,106,475
Other payables											—
Accrued unitary management fees		89,910			226,972			19,258			136,841		49,424
Total Liabilities		863,349			7,267,861			341,661			5,699,745		3,239,277
NET ASSETS	$	141,874,354		$	324,632,624		$	32,324,034		$	249,031,269	$	82,073,183
NET ASSETS CONSIST OF:
Shares of beneficial interest	$	138,569,286		$	296,687,239		$	68,525,177		$	196,929,770	$	71,912,128
Undistributed net investment income (loss)		985,174			593,423			(166,932	)		476,565		(618,514	)
Undistributed net realized gain (loss)		(17,607,852	)		(15,051,123	)		(40,041,593	)		5,955,648		(5,377,433	)
Net unrealized appreciation		19,927,746			42,403,085			4,007,382			45,669,286		16,157,002
Net Assets	$	141,874,354		$	324,632,624		$	32,324,034		$	249,031,269	$	82,073,183
Shares outstanding (unlimited amount authorized, $0.01 par value)		6,000,000			16,850,000			1,650,000			4,450,000		1,350,000
Net asset value	$	23.65		$	19.27		$	19.59		$	55.96	$	60.79
Share price	$	23.79		$	19.38		$	19.61		$	56.34	$	61.04
Investments, at cost	$	121,727,355		$	282,599,631		$	28,289,466		$	202,590,018	$	65,832,265
Foreign currencies, at cost	$	169,213		$	67,408		$	129,977		$	203,384	$	51,818

See Notes to Financial Statements.

74

	PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio			PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio			PowerShares FTSE RAFI Emerging Markets Portfolio			PowerShares Global Agriculture Portfolio
ASSETS:
Investments, at value	$	277,080,049		$	80,490,364		$	565,384,783		$	150,226,629
Cash		—			—			—			—
Foreign currencies, at value		100,602			81,033			224,920			302,940
Receivables:
Dividends and interest		1,014,009			535,194			1,271,090			137,381
Foreign tax reclaims		283,201			18,535			5,348			36,884
Investments sold		37,392			328,375			—			—
Shares sold		—			—			—			1,654,668
Prepaid expenses		—			—			—			—
Total Assets		278,515,253			81,453,501			566,886,141			152,358,502
LIABILITIES:
Due to custodian		707,464			419,142			84,046			287,762
Due to foreign custodian		—			—			—			—
Payables:
Investments purchased		—			409,532			—			1,756,347
Other payables
Accrued unitary management fees		159,499			47,988			392,020			87,749
Total Liabilities		866,963			876,662			476,066			2,131,858
NET ASSETS	$	277,648,290		$	80,576,839		$	566,410,075		$	150,226,644
NET ASSETS CONSIST OF:
Shares of beneficial interest	$	254,919,984		$	70,923,483		$	479,330,627		$	134,053,668
Undistributed net investment income (loss)		51,306			(364,648	)		1,102,773			320,947
Undistributed net realized gain (loss)		(25,208,097	)		3,645,287			(13,550,532	)		(754,114	)
Net unrealized appreciation		47,885,097			6,372,717			99,527,207			16,606,143
Net Assets	$	277,648,290		$	80,576,839		$	566,410,075		$	150,226,644
Shares outstanding (unlimited amount authorized, $0.01 par value)		6,400,000			3,100,000			21,050,000			4,500,000
Net asset value	$	43.38		$	25.99		$	26.91		$	33.38
Share price	$	43.72		$	26.09		$	27.05		$	33.54
Investments, at cost	$	229,244,803		$	74,130,059		$	465,880,217		$	133,624,650
Foreign currencies, at cost	$	102,364		$	79,448		$	223,856		$	300,921

75

Statements of Assets and Liabilities (Continued)

April 30, 2011 (Unaudited)

	PowerShares Global Clean Energy Portfolio			PowerShares Global Coal Portfolio			PowerShares Global Gold and Precious Metals Portfolio			PowerShares Global Nuclear Energy Portfolio			PowerShares Global Steel Portfolio			PowerShares Global Water Portfolio			PowerShares Global Wind Energy Portfolio			PowerShares MENA Frontier Countries Portfolio
ASSETS:
Investments, at value	$	211,892,013		$	44,740,636		$	68,564,824		$	30,944,227		$	8,281,178		$	381,407,116		$	28,682,417		$	26,829,357
Cash		—			—			—			—			—			—			—			—
Foreign currencies, at value		179,467			17,703			203			—			11,620			475,261			1,595			2,633
Receivables:
Dividends and interest		194,144			177,350			47,529			86,411			15,102			848,805			25,194			98,579
Foreign tax reclaims		122,542			3,645			—			44,352			2,107			374,378			19,725			—
Investments sold		—			—			—			—			—			—			—			762,769
Shares sold		—			—			—			—			—			—			—			—
Prepaid expenses		—			—			—			—			—			4,885			—			—
Total Assets		212,388,166			44,939,334			68,612,556			31,074,990			8,310,007			383,110,445			28,728,931			27,693,338
LIABILITIES:
Due to custodian		319,404			154,916			—			96,041			15,399			1,346,281			12,219			811,693
Due to foreign custodian		—			—			—			938			—			—			—			—
Payables:
Investments purchased		—			—			67,515			4,116			—			41,311			8,758			—
Other payables
Accrued unitary management fees		128,356			27,263			41,550			19,011			5,115			226,030			17,620			15,398
Total Liabilities		447,760			182,179			109,065			120,106			20,514			1,613,622			38,597			827,091
NET ASSETS	$	211,940,406		$	44,757,155		$	68,503,491		$	30,954,884		$	8,289,493		$	381,496,823		$	28,690,334		$	26,866,247
NET ASSETS CONSIST OF:
Shares of beneficial interest	$	337,975,849		$	37,411,612		$	51,182,189		$	43,800,469		$	8,109,578		$	446,375,353		$	46,721,430		$	44,887,193
Undistributed net investment income (loss)		(96,435	)		(57,002	)		(2,041,246	)		(681,788	)		42,138			1,371,345			(12,614	)		742,171
Undistributed net realized gain (loss)		(144,220,905	)		56,102			915,850			(12,344,930	)		(257,050	)		(127,469,095	)		(18,352,892	)		(19,797,858	)
Net unrealized appreciation		18,281,897			7,346,443			18,446,698			181,133			394,827			61,219,220			334,410			1,034,741
Net Assets	$	211,940,406		$	44,757,155		$	68,503,491		$	30,954,884		$	8,289,493		$	381,496,823		$	28,690,334		$	26,866,247
Shares outstanding (unlimited amount authorized, $0.01 par value)		13,700,000			1,200,000			1,350,000			1,500,000			350,000			17,950,000			2,550,000			2,100,000
Net asset value	$	15.47		$	37.30		$	50.74		$	20.64		$	23.68		$	21.25		$	11.25		$	12.79
Share price	$	15.49		$	37.56		$	50.98		$	20.58		$	23.72		$	21.37		$	11.28		$	12.70
Investments, at cost	$	193,632,855		$	37,395,026		$	50,117,997		$	30,769,030		$	7,886,698		$	320,266,891		$	28,350,086		$	25,844,117
Foreign currencies, at cost	$	176,074		$	17,703		$	191		$	(938	)	$	11,619		$	472,879		$	1,599		$	2,848

See Notes to Financial Statements.

76

	PowerShares Global Steel Portfolio			PowerShares Global Water Portfolio			PowerShares Global Wind Energy Portfolio			PowerShares MENA Frontier Countries Portfolio
ASSETS:
Investments, at value	$	8,281,178		$	381,407,116		$	28,682,417		$	26,829,357
Cash		—			—			—			—
Foreign currencies, at value		11,620			475,261			1,595			2,633
Receivables:
Dividends and interest		15,102			848,805			25,194			98,579
Foreign tax reclaims		2,107			374,378			19,725			—
Investments sold		—			—			—			762,769
Shares sold		—			—			—			—
Prepaid expenses		—			4,885			—			—
Total Assets		8,310,007			383,110,445			28,728,931			27,693,338
LIABILITIES:
Due to custodian		15,399			1,346,281			12,219			811,693
Due to foreign custodian		—			—			—			—
Payables:
Investments purchased		—			41,311			8,758			—
Other payables
Accrued unitary management fees		5,115			226,030			17,620			15,398
Total Liabilities		20,514			1,613,622			38,597			827,091
NET ASSETS	$	8,289,493		$	381,496,823		$	28,690,334		$	26,866,247
NET ASSETS CONSIST OF:
Shares of beneficial interest	$	8,109,578		$	446,375,353		$	46,721,430		$	44,887,193
Undistributed net investment income (loss)		42,138			1,371,345			(12,614	)		742,171
Undistributed net realized gain (loss)		(257,050	)		(127,469,095	)		(18,352,892	)		(19,797,858	)
Unrealized appreciation		394,827			61,219,220			334,410			1,034,741
Net Assets	$	8,289,493		$	381,496,823		$	28,690,334		$	26,866,247
Shares outstanding (unlimited amount authorized, $0.01 par value)		350,000			17,950,000			2,550,000			2,100,000
Net asset value	$	23.68		$	21.25		$	11.25		$	12.79
Share price	$	23.72		$	21.37		$	11.28		$	12.70
Investments, at cost	$	7,886,698		$	320,266,891		$	28,350,086		$	25,844,117
Foreign currencies, at cost	$	11,619		$	472,879		$	1,599		$	2,848

77

Statements of Operations

Six Months Ended April 30, 2011 (Unaudited)

	PowerShares DWA Developed Markets Technical Leaders Portfolio			PowerShares DWA Emerging Markets Technical Leaders Portfolio			PowerShares Dynamic Developed International Opportunities Portfolio			PowerShares Emerging Markets Infrastructure Portfolio			PowerShares FTSE RAFI Asia Pacific ex-Japan Portfolio
INVESTMENT INCOME:
Dividend income	$	1,702,747		$	2,950,552		$	406,477		$	1,685,513		$	945,456
Interest income		—			—			—			—			—
Foreign withholding tax		(83,595	)		(253,516	)		(26,460	)		(131,114	)		(43,340	)
Total Income		1,619,152			2,697,036			380,017			1,554,399			902,116
EXPENSES:
Unitary management fees		509,757			1,528,219			119,997			728,702			236,662
Other expenses		—			—			—			—			—
Total Expenses		509,757			1,528,219			119,997			728,702			236,662
Net Investment Income (Loss)		1,109,395			1,168,817			260,020			825,697			665,454
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) from:
Investments		171,449			(1,486,160	)		246,607			(859,436	)		1,126,458
In-kind redemptions		7,470,633			9,694,501			4,294,489			8,325,705			—
Foreign currencies		(94,690	)		(1,086,286	)		(13,005	)		(215,200	)		(55,335	)
Net realized gain (loss)		7,547,392			7,122,055			4,528,091			7,251,069			1,071,123
Net change in unrealized appreciation (depreciation) on:
Investments		7,532,323			10,915,690			466,163			14,794,789			9,386,900
Foreign currencies		3,234			(264	)		3,109			6,132			(150	)
Net change in unrealized appreciation (depreciation)		7,535,557			10,915,426			469,272			14,800,921			9,386,750
Net realized and unrealized gain (loss)		15,082,949			18,037,481			4,997,363			22,051,990			10,457,873
Net increase (decrease) in net assets resulting from operations	$	16,192,344		$	19,206,298		$	5,257,383		$	22,877,687		$	11,123,327

See Notes to Financial Statements.

78

	PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio			PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio			PowerShares FTSE RAFI Emerging Markets Portfolio			PowerShares Global Agriculture Portfolio
INVESTMENT INCOME:
Dividend income	$	3,534,818		$	1,268,481		$	3,985,674		$	508,660
Interest income		—			—			—			—
Foreign withholding tax		(334,548	)		(105,216	)		(136,407	)		(33,214	)
Total Income		3,200,270			1,163,265			3,849,267			475,446
EXPENSES:
Unitary management fees		856,019			327,063			2,228,717			357,821
Other expenses		—			—			250			—
Total Expenses		856,019			327,063			2,228,967			357,821
Net Investment Income (Loss)		2,344,251			836,202			1,620,300			117,625
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) from:
Investments		(410,191	)		1,317,251			3,103,002			(488,679	)
In-kind redemptions		—			7,930,648			15,278,071			255,745
Foreign currencies		(69,761	)		(31,118	)		(1,326,634	)		(41,363	)
Net realized gain (loss)		(479,952	)		9,216,781			17,054,439			(274,297	)
Net change in unrealized appreciation (depreciation) on:
Investments		28,434,715			349,270			31,477,064			7,991,290
Foreign currencies		24,692			7,257			26,320			1,196
Net change in unrealized appreciation (depreciation)		28,459,407			356,527			31,503,384			7,992,486
Net realized and unrealized gain (loss)		27,979,455			9,573,308			48,557,823			7,718,189
Net increase (decrease) in net assets resulting from operations	$	30,323,706		$	10,409,510		$	50,178,123		$	7,835,814

79

Statements of Operations (Continued)

Six Months Ended April 30, 2011 (Unaudited)

	PowerShares Global Clean Energy Portfolio			PowerShares Global Coal Portfolio			PowerShares Global Gold and Precious Metals Portfolio			PowerShares Global Nuclear Energy Portfolio
INVESTMENT INCOME:
Dividend income	$	633,382		$	380,972		$	292,051		$	602,284
Interest income		—			—			—			—
Foreign withholding tax		(76,533	)		(38,348	)		(12,828	)		(61,130	)
Total Income		556,849			342,624			279,223			541,154
EXPENSES:
Unitary management fees		609,835			118,577			237,581			134,672
Other expenses		—			—			—			—
Total Expenses		609,835			118,577			237,581			134,672
Net Investment Income (Loss)		(52,986	)		224,047			41,642			406,482
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) from:
Investments		(13,677,915	)		(107,681	)		(41,815	)		(489,301	)
In-kind redemptions		4,292,199			378,017			381,805			2,875,223
Foreign currencies		(103,077	)		(6,901	)		(10,830	)		(14,396	)
Net realized gain (loss)		(9,488,793	)		263,435			329,160			2,371,526
Net change in unrealized appreciation (depreciation) on:
Investments		27,650,363			3,295,199			6,750,991			(497,947	)
Foreign currencies		11,431			754			(111	)		1,568
Net change in unrealized appreciation (depreciation)		27,661,794			3,295,953			6,750,880			(496,379	)
Net realized and unrealized gain (loss)		18,173,001			3,559,388			7,080,040			1,875,147
Net increase (decrease) in net assets resulting from operations	$	18,120,015		$	3,783,435		$	7,121,682		$	2,281,629

See Notes to Financial Statements.

80

	PowerShares Global Steel Portfolio			PowerShares Global Water Portfolio			PowerShares Global Wind Energy Portfolio			PowerShares MENA Frontier Countries Portfolio
INVESTMENT INCOME:
Dividend income	$	83,793		$	3,050,307		$	140,113		$	804,535
Interest income		—			—			—			37,789
Foreign withholding tax		(5,981	)		(203,781	)		(10,638	)		(50,838	)
Total Income		77,812			2,846,526			129,475			791,486
EXPENSES:
Unitary management fees		30,209			1,288,194			99,497			81,224
Other expenses		—			716			—			—
Total Expenses		30,209			1,288,910			99,497			81,224
Net Investment Income (Loss)		47,603			1,557,616			29,978			710,262
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) from:
Investments		(33,820	)		(3,826,053	)		(2,894,320	)		130,499
In-kind redemptions		386,348			4,919,230			497,749			—
Foreign currencies		(27,073	)		(23,359	)		(3,556	)		(24,001	)
Net realized gain (loss)		325,455			1,069,818			(2,400,127	)		106,498
Net change in unrealized appreciation (depreciation) on:
Investments		244,684			44,851,632			5,029,974			(1,852,932	)
Foreign currencies		104			40,543			545			6,366
Net change in unrealized appreciation (depreciation)		244,788			44,892,175			5,030,519			(1,846,566	)
Net realized and unrealized gain (loss)		570,243			45,961,993			2,630,392			(1,740,068	)
Net increase (decrease) in net assets resulting from operations	$	617,846		$	47,519,609		$	2,660,370		$	(1,029,806	)

81

Statements of Changes in Net Assets

	PowerShares DWA Developed Markets Technical Leaders Portfolio						PowerShares DWA Emerging Markets Technical Leaders Portfolio						PowerShares Dynamic Developed International Opportunities Portfolio
	Six Months Ended April 30, 2011 (Unaudited)			Year Ended October 31, 2010			Six Months Ended April 30, 2011 (Unaudited)			Year Ended October 31, 2010			Six Months Ended April 30, 2011 (Unaudited)			Year Ended October 31, 2010
OPERATIONS:
Net investment income (loss)	$	1,109,395		$	306,397		$	1,168,817		$	721,855		$	260,020		$	707,241
Net realized gain (loss)		7,547,392			568,542			7,122,055			3,818,106			4,528,091			5,485,944
Net change in unrealized appreciation (depreciation)		7,535,557			9,623,839			10,915,426			28,019,918			469,272			(3,177,446	)
Net increase from payment by affiliate		—			16,695			—			—			—			—
Net increase (decrease) in net assets resulting from operations		16,192,344			10,515,473			19,206,298			32,559,879			5,257,383			3,015,739
Undistributed net investment income (loss) included in the price of units issued and redeemed		46,774			172,338			525,703			(2,516,092	)		59,550			(147,078	)
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income		(246,180	)		(584,810	)		(1,308,252	)		(204,594	)		(925,281	)		(1,004,418	)
Capital gains		—			—			—			—			—			—
Total distributions to shareholders		(246,180	)		(584,810	)		(1,308,252	)		(204,594	)		(925,281	)		(1,004,418	)
SHAREHOLDER TRANSACTIONS:
Proceeds from shares sold		63,290,881			76,586,786			132,631,675			302,090,243			18,040,135			21,687,304
Value of shares repurchased		(35,343,011	)		(11,342,327	)		(137,983,498	)		(50,961,803	)		(22,528,323	)		(50,732,519	)
Transaction fee		—			—			—			—			—			—
Net income equalization		(46,774	)		(172,338	)		(525,703	)		2,516,092			(59,550	)		147,078
Net increase (decrease) in net assets resulting from shares transactions		27,901,096			65,072,121			(5,877,526	)		253,644,532			(4,547,738	)		(28,898,137	)
Increase (Decrease) in Net Assets		43,894,034			75,175,122			12,546,223			283,483,725			(156,086	)		(27,033,894	)
NET ASSETS:
Beginning of period		97,980,320			22,805,198			312,086,401			28,602,676			32,480,120			59,514,014
End of period	$	141,874,354		$	97,980,320		$	324,632,624		$	312,086,401		$	32,324,034		$	32,480,120
Undistributed net investment income (loss) at end of period	$	985,174		$	75,185		$	593,423		$	207,155		$	(166,932	)	$	438,779
CHANGES IN SHARES OUTSTANDING:
Shares sold		2,900,000			4,000,000			7,250,000			18,750,000			1,000,000			1,350,000
Shares repurchased		(1,600,000	)		(600,000	)		(7,850,000	)		(3,450,000	)		(1,250,000	)		(3,250,000	)
Shares outstanding, beginning of period		4,700,000			1,300,000			17,450,000			2,150,000			1,900,000			3,800,000
Shares outstanding, end of period		6,000,000			4,700,000			16,850,000			17,450,000			1,650,000			1,900,000

(a)  16% of the outstanding shares of the PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio are owned by Invesco Ltd. and/or its wholly owned, indirect subsidiaries.

See Notes to Financial Statements.

82

	PowerShares Emerging Markets Infrastructure Portfolio						PowerShares FTSE RAFI Asia Pacific ex-Japan Portfolio						PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio
	Six Months Ended April 30, 2011 (Unaudited)			Year Ended October 31, 2010			Six Months Ended April 30, 2011 (Unaudited)			Year Ended October 31, 2010			Six Months Ended April 30, 2011 (Unaudited)			Year Ended October 31, 2010
OPERATIONS:
Net investment income (loss)	$	825,697		$	1,629,733		$	665,454		$	945,066		$	2,344,251		$	3,031,642
Net realized gain (loss)		7,251,069			9,369,968			1,071,123			2,988,435			(479,952	)		1,160,060
Net change in unrealized appreciation (depreciation)		14,800,921			18,001,805			9,386,750			2,528,964			28,459,407			5,168,742
Net increase from payment by affiliate		—			—			—			—			—			—
Net increase (decrease) in net assets resulting from operations		22,877,687			29,001,506			11,123,327			6,462,465			30,323,706			9,360,444
Undistributed net investment income (loss) included in the price of units issued and redeemed		119,806			69,180			(424,170	)		(14,335	)		408,599			461,378
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income		(1,253,929	)		(1,216,842	)		(858,112	)		(1,592,021	)		(4,222,669	)		(3,194,626	)
Capital gains		—			—			—			—			—			—
Total distributions to shareholders		(1,253,929	)		(1,216,842	)		(858,112	)		(1,592,021	)		(4,222,669	)		(3,194,626	)
SHAREHOLDER TRANSACTIONS:
Proceeds from shares sold		88,211,032			57,472,598			27,848,007			9,245,486			68,223,988			51,545,839
Value of shares repurchased		(20,501,118	)		(29,345,667	)		—			(8,846,372	)		—			(13,093,661	)
Transaction fee		—			—			—			—			—			—
Net income equalization		(119,806	)		(69,180	)		424,170			14,335			(408,599	)		(461,378	)
Net increase (decrease) in net assets resulting from shares transactions		67,590,108			28,057,751			28,272,177			413,449			67,815,389			37,990,800
Increase (Decrease) in Net Assets		89,333,672			55,911,595			38,113,222			5,269,558			94,325,025			44,617,996
NET ASSETS:
Beginning of period		159,697,597			103,786,002			43,959,961			38,690,403			183,323,265			138,705,269
End of period	$	249,031,269		$	159,697,597		$	82,073,183		$	43,959,961		$	277,648,290		$	183,323,265
Undistributed net investment income (loss) at end of period	$	476,565		$	784,991		$	(618,514	)	$	(1,686	)	$	51,306		$	1,521,125
CHANGES IN SHARES OUTSTANDING:
Shares sold		1,650,000			1,300,000			500,000			200,000			1,700,000			1,400,000
Shares repurchased		(400,000	)		(700,000	)		—			(200,000	)		—			(400,000	)
Shares outstanding, beginning of period		3,200,000			2,600,000			850,000			850,000			4,700,000			3,700,000
Shares outstanding, end of period		4,450,000			3,200,000			1,350,000			850,000			6,400,000			4,700,000	(a)

83

Statements of Changes in Net Assets (Continued)

	PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio						PowerShares FTSE RAFI Emerging Markets Portfolio						PowerShares Global Agriculture Portfolio
	Six Months Ended April 30, 2011 (Unaudited)			Year Ended October 31, 2010			Six Months Ended April 30, 2011 (Unaudited)			Year Ended October 31, 2010			Six Months Ended April 30, 2011 (Unaudited)			Year Ended October 31, 2010
OPERATIONS:
Net investment income (loss)	$	836,202		$	639,840		$	1,620,300		$	6,523,343		$	117,625		$	672,378
Net realized gain (loss)		9,216,781			1,539,298			17,054,439			21,871,612			(274,297	)		1,652,081
Net change in unrealized appreciation (depreciation)		356,527			4,073,313			31,503,384			34,886,193			7,992,486			6,535,026
Net increase from payment by affiliate		—			—			—			—			—			—
Net increase (decrease) in net assets resulting from operations		10,409,510			6,252,451			50,178,123			63,281,148			7,835,814			8,859,485
Undistributed net investment income (loss) included in the price of units issued and redeemed		(376,316	)		(329,899	)		167,160			882,014			326,323			178,574
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income		(1,064,724	)		(990,019	)		(4,605,974	)		(1,722,465	)		(533,379	)		(292,230	)
Capital gains		—			—			—			—			—			—
Total distributions to shareholders		(1,064,724	)		(990,019	)		(4,605,974	)		(1,722,465	)		(533,379	)		(292,230	)
SHAREHOLDER TRANSACTIONS:
Proceeds from shares sold		60,685,188			25,151,197			104,731,572			266,016,377			84,796,960			42,039,588
Value of shares repurchased		(49,219,476	)		(2,137,288	)		(81,135,696	)		(5,446,480	)		(1,508,368	)		(15,623,429	)
Transaction fee		—			—			—			—			—			—
Net income equalization		376,316			329,899			(167,160	)		(882,014	)		(326,323	)		(178,574	)
Net increase (decrease) in net assets resulting from shares transactions		11,842,028			23,343,808			23,428,716			259,687,883			82,962,269			26,237,585
Increase (Decrease) in Net Assets		20,810,498			28,276,341			69,168,025			322,128,580			90,591,027			34,983,414
NET ASSETS:
Beginning of period		59,766,341			31,490,000			497,242,050			175,113,470			59,635,617			24,652,203
End of period	$	80,576,839		$	59,766,341		$	566,410,075		$	497,242,050		$	150,226,644		$	59,635,617
Undistributed net investment income (loss) at end of period	$	(364,648	)	$	240,190		$	1,102,773		$	3,921,287		$	320,947		$	410,378
CHANGES IN SHARES OUTSTANDING:
Shares sold		2,500,000			1,200,000			4,200,000			11,850,000			2,600,000			1,550,000
Shares repurchased		(2,000,000	)		(100,000	)		(3,250,000	)		(250,000	)		(50,000	)		(650,000	)
Shares outstanding, beginning of period		2,600,000			1,500,000			20,100,000			8,500,000			1,950,000			1,050,000
Shares outstanding, end of period		3,100,000			2,600,000			21,050,000			20,100,000	(a)		4,500,000			1,950,000	(b)

(a)  20% of the outstanding shares of the PowerShares FTSE RAFI Emerging Markets Portfolio are owned by Invesco Ltd. and/or its wholly owned, indirect subsidiaries.

(b)  8% of the outstanding shares of the PowerShares Global Agriculture Portfolio and PowerShares Global Gold and Precious Metals Portfolio are owned by Invesco Ltd. and/or its wholly owned, indirect subsidiaries.

See Notes to Financial Statements.

84

	PowerShares Global Clean Energy Portfolio						PowerShares Global Coal Portfolio						PowerShares Global Gold and Precious Metals Portfolio
	Six Months Ended April 30, 2011 (Unaudited)			Year Ended October 31, 2010			Six Months Ended April 30, 2011 (Unaudited)			Year Ended October 31, 2010			Six Months Ended April 30, 2011 (Unaudited)			Year Ended October 31, 2010
OPERATIONS:
Net investment income (loss)	$	(52,986	)	$	385,427		$	224,047		$	145,925		$	41,642		$	30,636
Net realized gain (loss)		(9,488,793	)		(13,031,463	)		263,435			1,795,614			329,160			2,112,721
Net change in unrealized appreciation (depreciation)		27,661,794			(8,693,055	)		3,295,953			1,486,470			6,750,880			10,635,130
Net increase from payment by affiliate		—			—			—			—			—			—
Net increase (decrease) in net assets resulting from operations		18,120,015			(21,339,091	)		3,783,435			3,428,009			7,121,682			12,778,487
Undistributed net investment income (loss) included in the price of units issued and redeemed		(43,502	)		(39,100	)		(33,105	)		15,937			31,679			161,236
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income		(208,449	)		(79,514	)		(174,195	)		(170,348	)		(1,257,363	)		(91,512	)
Capital gains		—			—			(134,632	)		—			(858,897	)		(318	)
Total distributions to shareholders		(208,449	)		(79,514	)		(308,827	)		(170,348	)		(2,116,260	)		(91,830	)
SHAREHOLDER TRANSACTIONS:
Proceeds from shares sold		52,197,945			29,473,889			23,904,226			11,828,940			12,556,946			20,591,451
Value of shares repurchased		(19,954,910	)		(32,242,178	)		(1,885,669	)		(6,943,964	)		(7,436,187	)		(2,225,492	)
Transaction fee		—			—			—			—			—			—
Net income equalization		43,502			39,100			33,105			(15,937	)		(31,679	)		(161,236	)
Net increase (decrease) in net assets resulting from shares transactions		32,286,537			(2,729,189	)		22,051,662			4,869,039			5,089,080			18,204,723
Increase (Decrease) in Net Assets		50,154,601			(24,186,894	)		25,493,165			8,142,637			10,126,181			31,052,616
NET ASSETS:
Beginning of period		161,785,805			185,972,699			19,263,990			11,121,353			58,377,310			27,324,694
End of period	$	211,940,406		$	161,785,805		$	44,757,155		$	19,263,990		$	68,503,491		$	58,377,310
Undistributed net investment income (loss) at end of period	$	(96,435	)	$	208,502		$	(57,002	)	$	60,883		$	(2,041,246	)	$	1,693
CHANGES IN SHARES OUTSTANDING:
Shares sold		3,525,000			1,875,000			650,000			400,000			250,000			500,000
Shares repurchased		(1,425,000	)		(2,250,000	)		(50,000	)		(250,000	)		(150,000	)		(50,000	)
Shares outstanding, beginning of period		11,600,000			11,975,000			600,000			450,000			1,250,000			800,000
Shares outstanding, end of period		13,700,000			11,600,000			1,200,000			600,000			1,350,000			1,250,000	(b)

85

Statements of Changes in Net Assets (Continued)

	PowerShares Global Nuclear Energy Portfolio						PowerShares Global Steel Portfolio						PowerShares Global Water Portfolio
	Six Months Ended April 30, 2011 (Unaudited)			Year Ended October 31, 2010			Six Months Ended April 30, 2011 (Unaudited)			Year Ended October 31, 2010			Six Months Ended April 30, 2011 (Unaudited)			Year Ended October 31, 2010
OPERATIONS:
Net investment income (loss)	$	406,482		$	317,598		$	47,603		$	98,450		$	1,557,616		$	3,894,627
Net realized gain (loss)		2,371,526			(1,459,584	)		325,455			(187,223	)		1,069,818			8,681,725
Net change in unrealized appreciation (depreciation)		(496,379	)		4,341,057			244,788			263,963			44,892,175			14,776,055
Net increase from payment by affiliate		—			—			—			—			—			—
Net increase (decrease) in net assets resulting from operations		2,281,629			3,199,071			617,846			175,190			47,519,609			27,352,407
Undistributed net investment income (loss) included in the price of units issued and redeemed		219,807			(20,434	)		4,301			7,824			70,150			82,291
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income		(1,075,060	)		(982,844	)		(48,130	)		(51,106	)		(1,824,304	)		(4,395,937	)
Capital gains		—			—			—			—			—			—
Total distributions to shareholders		(1,075,060	)		(982,844	)		(48,130	)		(51,106	)		(1,824,304	)		(4,395,937	)
SHAREHOLDER TRANSACTIONS:
Proceeds from shares sold		2,092,535			7,708,069			5,922,653			9,386,921			31,701,984			87,173,887
Value of shares repurchased		(12,045,703	)		(5,337,150	)		(3,543,453	)		(7,018,501	)		(18,055,772	)		(68,398,858	)
Transaction fee		—			—			—			—			—			—
Net income equalization		(219,807	)		20,434			(4,301	)		(7,824	)		(70,150	)		(82,291	)
Net increase (decrease) in net assets resulting from shares transactions		(10,172,975	)		2,391,353			2,374,899			2,360,596			13,576,062			18,692,738
Increase (Decrease) in Net Assets		(8,746,599	)		4,587,146			2,948,916			2,492,504			59,341,517			41,731,499
NET ASSETS:
Beginning of period		39,701,483			35,114,337			5,340,577			2,848,073			322,155,306			280,423,807
End of period	$	30,954,884		$	39,701,483		$	8,289,493		$	5,340,577		$	381,496,823		$	322,155,306
Undistributed net investment income (loss) at end of period	$	(681,788	)	$	(233,017	)	$	42,138		$	38,364		$	1,371,345		$	1,567,883
CHANGES IN SHARES OUTSTANDING:
Shares sold		100,000			400,000			250,000			450,000			1,600,000			4,800,000
Shares repurchased		(600,000	)		(300,000	)		(150,000	)		(350,000	)		(900,000	)		(3,900,000	)
Shares outstanding, beginning of period		2,000,000			1,900,000			250,000			150,000			17,250,000			16,350,000
Shares outstanding, end of period		1,500,000			2,000,000			350,000			250,000			17,950,000			17,250,000

(a)  6% of the outstanding shares of the PowerShares MENA Frontier Countries Portfolio are owned by Invesco Ltd. and/or its wholly owned, indirect subsidiaries.

See Notes to Financial Statements.

86

	PowerShares Global Wind Energy Portfolio						PowerShares MENA Frontier Countries Portfolio
	Six Months Ended April 30, 2011 (Unaudited)			Year Ended October 31, 2010			Six Months Ended April 30, 2011 (Unaudited)			Year Ended October 31, 2010
OPERATIONS:
Net investment income (loss)	$	29,978		$	21,576		$	710,262		$	423,357
Net realized gain (loss)		(2,400,127	)		(6,078,849	)		106,498			(3,288,171	)
Net change in unrealized appreciation (depreciation)		5,030,519			(8,914,898	)		(1,846,566	)		2,736,207
Net increase from payment by affiliate		—			—			—			—
Net increase (decrease) in net assets resulting from operations		2,660,370			(14,972,171	)		(1,029,806	)		(128,607	)
Undistributed net investment income (loss) included in the price of units issued and redeemed		3,623			3,169			58,489			86,508
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income		(46,224	)		—			(346,599	)		(207,955	)
Capital gains		—			—			—			—
Total distributions to shareholders		(46,224	)		—			(346,599	)		(207,955	)
SHAREHOLDER TRANSACTIONS:
Proceeds from shares sold		2,099,613			—			6,685,694			10,841,917
Value of shares repurchased		(2,505,640	)		(2,103,779	)		—			(6,287,017	)
Transaction fee		—			—			—			85,645
Net income equalization		(3,623	)		(3,169	)		(58,489	)		(86,508	)
Net increase (decrease) in net assets resulting from shares transactions		(409,650	)		(2,106,948	)		6,627,205			4,554,037
Increase (Decrease) in Net Assets		2,208,119			(17,075,950	)		5,309,289			4,303,983
NET ASSETS:
Beginning of period		26,482,215			43,558,165			21,556,958			17,252,975
End of period	$	28,690,334		$	26,482,215		$	26,866,247		$	21,556,958
Undistributed net investment income (loss) at end of period	$	(12,614	)	$	9		$	742,171		$	320,019
CHANGES IN SHARES OUTSTANDING:
Shares sold		200,000			—			525,000			825,000
Shares repurchased		(250,000	)		(200,000	)		—			(450,000	)
Shares outstanding, beginning of period		2,600,000			2,800,000			1,575,000			1,200,000
Shares outstanding, end of period		2,550,000			2,600,000			2,100,000			1,575,000	(a)

87

Financial Highlights

PowerShares DWA Developed Markets Technical Leaders Portfolio

	Six Months Ended April 30, 2011			Year Ended October 31,						For the Period December 27, 2007* through
	(unaudited)			2010			2009			October 31, 2008
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	20.85		$	17.54		$	13.29		$	24.94
Net investment income**		0.20			0.16			0.25			0.42
Net realized and unrealized gain (loss) on investments		2.64			3.59			4.02			(11.79	)
Total from investment operations		2.84			3.75			4.27			(11.37	)
Distributions to shareholders from:
Net investment income		(0.04	)		(0.44	)		(0.02	)		(0.10	)
Return of capital		—			—			—			(0.18	)
Total distributions		(0.04	)		(0.44	)		(0.02	)		(0.28	)
Net asset value at end of period	$	23.65		$	20.85		$	17.54		$	13.29
Share price at end of period***	$	23.79		$	20.94		$	17.18		$	12.84
NET ASSET VALUE TOTAL RETURN****		13.67	%		21.82	%(a)		32.14	%		(46.12	)%(b)
SHARE PRICE TOTAL RETURN****		13.84	%		24.88	%		33.97	%		(47.93	)%(b)
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	141,874		$	97,980		$	22,805		$	23,922
Ratio to average net assets of:
Expenses		0.80	%†		0.80	%		0.80	%		0.80	%†
Net investment income		1.74	%†		0.86	%		1.75	%		2.14	%†
Portfolio turnover rate ††		48	%		107	%		135	%		205	%
Undistributed net investment income included in price of units issued and redeemed**#	$	0.01		$	0.09		$	0.01		$	0.11

PowerShares DWA Emerging Markets Technical Leaders Portfolio

	Six Months Ended April 30, 2011			Year Ended October 31,						For the Period December 27, 2007* through
	(unaudited)			2010			2009			October 31, 2008
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	17.88		$	13.30		$	9.24		$	25.07
Net investment income**		0.06			0.13			0.08			0.39
Net realized and unrealized gain (loss) on investments		1.39			4.55			3.98			(16.16	)
Total from investment operations		1.45			4.68			4.06			(15.77	)
Distributions to shareholders from:
Net investment income		(0.06	)		(0.10	)		—			—
Return of capital		—			—			—			(0.06	)
Total distributions		(0.06	)		(0.10	)		—			(0.06	)
Net asset value at end of period	$	19.27		$	17.88		$	13.30		$	9.24
Share price at end of period***	$	19.38		$	17.99		$	13.17		$	9.45
NET ASSET VALUE TOTAL RETURN****		8.15	%		35.43	%		43.94	%		(63.04	)%(c)
SHARE PRICE TOTAL RETURN****		8.10	%		37.62	%		39.36	%		(62.20	)%(c)
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	324,633		$	312,086		$	28,603		$	12,938
Ratio to average net assets of:
Expenses		0.90	%†		0.90	%		0.90	%		0.90	%†
Net investment income		0.69	%†		0.88	%		0.79	%		2.30	%†
Portfolio turnover rate ††		85	%		128	%		205	%		223	%
Undistributed net investment income (loss) included in price of units issued and redeemed**#	$	0.03		$	(0.47	)	$	(0.05	)	$	(0.11	)

*  Commencement of Investment Operations.

**  Based on average shares outstanding.

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

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

†  Annualized.

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

#  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 $0.01 per share. Had the pay-in not been made, the Net Asset Value Total Return would have been 21.76%.

(b)  The net asset value total return from Fund Inception December 28, 2007 (first day of trading on the exchange) to October 31, 2008 was (46.42)%. The share price total return from Fund Inception to October 31, 2008 was (48.52)%.

(c)  The net asset value total return from Fund Inception December 28, 2007 (first day of trading on the exchange) to October 31, 2008 was (62.96)%. The share price total return from Fund Inception to October 31, 2008 was (62.39)%.

See Notes to Financial Statements.

88

Financial Highlights (Continued)

PowerShares Dynamic Developed International Opportunities Portfolio

	Six Months Ended April 30, 2011			Year Ended October 31,									For the Period June 13, 2007* through
	(unaudited)			2010			2009			2008			October 31, 2007
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	17.09		$	15.66		$	11.32		$	26.89		$	24.84
Net investment income**		0.15			0.27			0.30			0.55			0.08
Net realized and unrealized gain (loss) on investments		2.84			1.47			4.17			(15.61	)		2.01
Total from investment operations		2.99			1.74			4.47			(15.06	)		2.09
Distributions to shareholders from:
Net investment income		(0.49	)		(0.31	)		(0.13	)		(0.42	)		(0.04	)
Return of capital		—			—			—			(0.09	)		—
Total distributions		(0.49	)		(0.31	)		(0.13	)		(0.51	)		(0.04	)
Net asset value at end of period	$	19.59		$	17.09		$	15.66		$	11.32		$	26.89
Share price at end of period***	$	19.61		$	17.03		$	15.44		$	11.27
NET ASSET VALUE TOTAL RETURN****		17.89	%		11.33	%		39.69	%		(56.89	)%		8.42	%
SHARE PRICE TOTAL RETURN****		18.43	%		12.51	%		38.34	%		(57.81	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	32,324		$	32,480		$	59,514		$	46,416		$	56,476
Ratio to average net assets of:
Expenses		0.75	%†		0.75	%		0.75	%		0.75	%		0.75	%†
Net investment income		1.63	%†		1.72	%		2.49	%		2.67	%		0.96	%†
Portfolio turnover rate ††		26	%		125	%		194	%		194	%		54	%
Undistributed net investment income (loss) included in price of units issued and redeemed**#	$	0.03		$	(0.06	)	$	(0.00	)(a)	$	0.10		$	0.06

PowerShares Emerging Markets Infrastructure Portfolio

	Six Months Ended April 30, 2011			Year Ended October 31,						For the Period October 15, 2008* through
	(unaudited)			2010			2009			October 31, 2008
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	49.91		$	39.92		$	20.20		$	22.64
Net investment income**		0.22			0.53			0.56			0.06
Net realized and unrealized gain (loss) on investments		6.18			9.87			19.26			(2.50	)
Total from investment operations		6.40			10.40			19.82			(2.44	)
Distributions to shareholders from:
Net investment income		(0.35	)		(0.41	)		(0.10	)		—
Net asset value at end of period	$	55.96		$	49.91		$	39.92		$	20.20
Share price at end of period***	$	56.34		$	50.04		$	40.10		$	20.20
NET ASSET VALUE TOTAL RETURN****		12.88	%		26.23	%		98.46	%		(10.78	)%(b)
SHARE PRICE TOTAL RETURN****		13.35	%		25.98	%		99.35	%		(10.78	)%(b)
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	249,031		$	159,698		$	103,786		$	2,020
Ratio to average net assets of:
Expenses		0.75	%†		0.75	%		0.75	%		0.75	%†
Net investment income		0.85	%†		1.22	%		1.65	%		6.64	%†
Portfolio turnover rate ††		7	%		36	%		38	%		5	%
Undistributed net investment income included in price of units issued and redeemed**#	$	0.03		$	0.02		$	0.42		$	—

*  Commencement of Investment Operations.

**  Based on average shares outstanding.

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

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

†  Annualized.

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

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

(a)  Amount represents less than $(0.005).

(b)  The net asset value total return from Fund Inception October 16, 2008 (first day of trading on the exchange) to October 31, 2008 was (7.55)%. The share price total return from Fund Inception to October 31, 2008 was (17.48)%.

See Notes to Financial Statements.

89

Financial Highlights (Continued)

PowerShares FTSE RAFI Asia Pacific ex-Japan Portfolio

	Six Months Ended April 30, 2011			Year Ended October 31,									For the Period June 25, 2007* through
	(unaudited)			2010			2009			2008			October 31, 2007
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	51.72		$	45.52		$	28.82		$	63.10		$	50.11
Net investment income**		0.63			1.08			1.19			1.85			0.51
Net realized and unrealized gain (loss) on investments		9.32			6.98			16.57			(34.33	)		12.74
Total from investment operations		9.95			8.06			17.76			(32.48	)		13.25
Distributions to shareholders from:
Net investment income		(0.88	)		(1.86	)		(1.06	)		(1.65	)		(0.26	)
Return of capital		—			—			—			(0.15	)		—
Total distributions		(0.88	)		(1.86	)		(1.06	)		(1.80	)		(0.26	)
Net asset value at end of period	$	60.79		$	51.72		$	45.52		$	28.82		$	63.10
Share price at end of period***	$	61.04		$	51.99		$	45.28		$	28.76
NET ASSET VALUE TOTAL RETURN****		19.50	%		18.37	%		63.18	%		(52.57	)%		26.53	%
SHARE PRICE TOTAL RETURN****		19.35	%		19.59	%		62.64	%		(53.68	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	82,073		$	43,960		$	38,690		$	14,412		$	12,633
Ratio to average net assets of:
Expenses		0.80	%†		0.80	%		0.80	%		0.80	%		0.80	%†
Net investment income		2.25	%†		2.33	%		3.54	%		3.78	%		2.74	%†
Portfolio turnover rate ††		19	%		30	%		42	%		45	%		1	%
Undistributed net investment income (loss) included in price of units issued and redeemed**#	$	(0.40	)	$	(0.02	)	$	0.22		$	0.17		$	—

PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio

	Six Months Ended April 30, 2011			Year Ended October 31,									For the Period June 25, 2007* through
	(unaudited)			2010			2009			2008			October 31, 2007
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	39.00		$	37.49		$	27.86		$	53.05		$	49.37
Net investment income**		0.41			0.72			0.67			1.32			0.13
Net realized and unrealized gain (loss) on investments		4.77			1.60			9.55			(25.98	)		3.56
Total from investment operations		5.18			2.32			10.22			(24.66	)		3.69
Distributions to shareholders from:
Net investment income		(0.80	)		(0.81	)		(0.59	)		(0.53	)		(0.01	)
Net asset value at end of period	$	43.38		$	39.00		$	37.49		$	27.86		$	53.05
Share price at end of period***	$	43.72		$	39.43		$	37.13		$	28.41
NET ASSET VALUE TOTAL RETURN****		13.56	%		6.37	%		37.40	%		(46.86	)%		7.48	%
SHARE PRICE TOTAL RETURN****		13.17	%		8.55	%		33.43	%		(46.22	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	277,648		$	183,323		$	138,705		$	58,509		$	31,840
Ratio to average net assets of:
Expenses		0.75	%†		0.75	%		0.75	%		0.75	%		0.75	%†
Net investment income		2.05	%†		1.99	%		2.21	%		3.09	%		0.85	%†
Portfolio turnover rate ††		16	%		21	%		28	%		31	%		30	%
Undistributed net investment income included in price of units issued and redeemed**#	$	0.07		$	0.11		$	0.39		$	0.27		$	0.12

*  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 same 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.

See Notes to Financial Statements.

90

Financial Highlights (Continued)

PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio

	Six Months Ended April 30, 2011			Year Ended October 31,									For the Period September 27, 2007* through
	(unaudited)			2010			2009			2008			October 31, 2007
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	22.99		$	20.99		$	13.54		$	26.47		$	25.18
Net investment income**		0.24			0.32			0.28			0.45			0.01
Net realized and unrealized gain (loss) on investments		3.13			2.31			7.34			(13.07	)		1.28
Total from investment operations		3.37			2.63			7.62			(12.62	)		1.29
Distributions to shareholders from:
Net investment income		(0.37	)		(0.63	)		(0.17	)		(0.31	)		—
Net asset value at end of period	$	25.99		$	22.99		$	20.99		$	13.54		$	26.47
Share price at end of period***	$	26.09		$	23.27		$	20.79		$	13.99
NET ASSET VALUE TOTAL RETURN****		14.84	%		12.93	%		56.70	%		(48.13	)%		5.12	%
SHARE PRICE TOTAL RETURN****		13.82	%		15.40	%		50.21	%		(46.71	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	80,577		$	59,766		$	31,490		$	13,536		$	5,294
Ratio to average net assets of:
Expenses		0.75	%†		0.75	%		0.75	%		0.75	%		0.75	%†
Net investment income		1.92	%†		1.52	%		1.74	%		2.13	%		0.36	%†
Portfolio turnover rate ††		64	%		24	%		41	%		50	%		—	(a)
Undistributed net investment income (loss) included in price of units issued and redeemed**#	$	(0.11	)	$	(0.16	)	$	0.05		$	0.11		$	—

PowerShares FTSE RAFI Emerging Markets Portfolio

	Six Months Ended April 30, 2011			Year Ended October 31,									For the Period September 27, 2007* through
	(unaudited)			2010			2009			2008			October 31, 2007
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	24.74		$	20.60		$	13.45		$	27.94		$	25.55
Net investment income**		0.08			0.48			0.26			0.51			0.01
Net realized and unrealized gain (loss) on investments		2.31			3.82			7.21			(14.74	)		2.38
Total from investment operations		2.39			4.30			7.47			(14.23	)		2.39
Distributions to shareholders from:
Net investment income		(0.22	)		(0.16	)		(0.32	)		(0.26	)		—
Net asset value at end of period	$	26.91		$	24.74		$	20.60		$	13.45		$	27.94
Share price at end of period***	$	27.05		$	25.01		$	20.57		$	13.52
NET ASSET VALUE TOTAL RETURN****		9.74	%		20.94	%		56.48	%		(51.32	)%		9.35	%
SHARE PRICE TOTAL RETURN****		9.12	%		22.43	%		55.41	%		(51.75	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	566,410		$	497,242		$	175,113		$	56,509		$	27,942
Ratio to average net assets of:
Expenses		0.85	%†		0.85	%		0.85	%		0.85	%		0.85	%†
Net investment income		0.62	%†		2.13	%		1.52	%		2.29	%		0.56	%†
Portfolio turnover rate ††		17	%		41	%		52	%		49	%		8	%
Undistributed net investment income (loss) included in price of units issued and redeemed**#	$	0.01		$	0.06		$	(0.01	)	$	(0.06	)	$	0.00	(b)

*  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 0.5%.

(b)  Amount represents less than $0.005.

See Notes to Financial Statements.

91

Financial Highlights (Continued)

PowerShares Global Agriculture Portfolio

	Six Months Ended April 30, 2011			Year Ended October 31,						For the Period September 16, 2008* through
	(unaudited)			2010			2009			October 31, 2008
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	30.58		$	23.48		$	16.60		$	25.35
Net investment income**		0.06			0.33			0.17			—	(a)
Net realized and unrealized gain (loss) on investments		2.99			6.92			6.72			(8.75	)
Total from investment operations		3.05			7.25			6.89			(8.75	)
Distributions to shareholders from:
Net investment income		(0.25	)		(0.15	)		(0.01	)		—
Net asset value at end of period	$	33.38		$	30.58		$	23.48		$	16.60
Share price at end of period***	$	33.54		$	30.68		$	23.27		$	16.69
NET ASSET VALUE TOTAL RETURN****		10.07	%		30.99	%		41.53	%		(34.52	)%(b)
SHARE PRICE TOTAL RETURN****		10.24	%		32.61	%		39.50	%		(34.16	)%(b)
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	150,227		$	59,636		$	24,652		$	1,660
Ratio to average net assets of:
Expenses		0.75	%†		0.75	%		0.75	%		0.75	%†
Net investment income		0.25	%†		1.25	%		0.79	%		0.13	%†
Portfolio turnover rate ††		6	%		19	%		33	%		22	%
Undistributed net investment income (loss) included in price of units issued and redeemed**#	$	0.16		$	0.09		$	0.21		$	—

*  Commencement of Investment Operations.

**  Based on average shares outstanding.

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

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

†  Annualized.

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

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

(a)  Amount represents less than $0.005.

(b)  The net asset value total return from Fund Inception September 18, 2008 (first day of trading on the exchange) to October 31, 2008 was (32.63)%. The share price total return from Fund Inception to October 31, 2008 was (33.46)%.

See Notes to Financial Statements.

92

Financial Highlights (Continued)

PowerShares Global Clean Energy Portfolio

	Six Months Ended April 30, 2011			Year Ended October 31,									For the Period June 13, 2007* through
	(unaudited)			2010			2009			2008			October 31, 2007
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	13.95		$	15.53		$	12.25		$	30.95		$	25.10
Net investment income (loss)**		(0.01	)		0.03			0.03			0.02			0.03
Net realized and unrealized gain (loss) on investments		1.55			(1.60	)		3.28			(18.72	)		5.82
Total from investment operations		1.54			(1.57	)		3.31			(18.70	)		5.85
Distributions to shareholders from:
Net investment income		(0.02	)		(0.01	)		(0.03	)		—			—
Net asset value at end of period	$	15.47		$	13.95		$	15.53		$	12.25		$	30.95
Share price at end of period***	$	15.49		$	13.91		$	15.39		$	12.43
NET ASSET VALUE TOTAL RETURN****		11.05	%		(10.14	)%		27.10	%		(60.42	)%		23.31	%
SHARE PRICE TOTAL RETURN****		11.51	%		(9.58	)%		24.13	%		(60.16	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	211,940		$	161,786		$	185,973		$	106,553		$	95,963
Ratio to average net assets of:
Expenses		0.75	%†		0.75	%		0.75	%		0.75	%		0.75	%†
Net investment income (loss)		(0.07	)%†		0.22	%		0.23	%		0.09	%		(0.19	)%†
Portfolio turnover rate ††		31	%		39	%		62	%		62	%		4	%
Undistributed net investment income (loss) included in price of units issued and redeemed**#	$	0.00	(a)	$	(0.00	)(a)	$	0.01		$	0.02		$	0.05

PowerShares Global Coal Portfolio

	Six Months Ended April 30, 2011			Year Ended October 31,						For the Period September 16, 2008* through
	(unaudited)			2010			2009			October 31, 2008
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	32.11		$	24.71		$	14.07		$	24.40
Net investment income**		0.25			0.27			0.46			0.06
Net realized and unrealized gain (loss) on investments		5.17			7.44			10.43			(10.39	)
Total from investment operations		5.42			7.71			10.89			(10.33	)
Distributions to shareholders from:
Net investment income		(0.23	)		(0.31	)		(0.25	)		—
Net asset value at end of period	$	37.30		$	32.11		$	24.71		$	14.07
Share price at end of period***	$	37.56		$	32.29		$	24.48		$	14.31
NET ASSET VALUE TOTAL RETURN****		17.51	%		31.40	%		79.17	%		(42.34	)%(b)
SHARE PRICE TOTAL RETURN****		17.66	%		33.38	%		74.45	%		(41.35	)%(b)
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	44,757		$	19,264		$	11,121		$	1,407
Ratio to average net assets of:
Expenses		0.75	%†		0.75	%		0.75	%		0.75	%†
Net investment income		1.41	%†		0.98	%		2.30	%		2.82	%†
Portfolio turnover rate ††		10	%		30	%		52	%		33	%
Undistributed net investment income (loss) included in price of units issued and redeemed**#	$	(0.04	)	$	0.03		$	(0.16	)	$	—

*  Commencement of Investment Operations.

**  Based on average shares outstanding.

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

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

†  Annualized.

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

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

(a)  Amount represents less than $(0.005).

(b)  The net asset value total return from Fund Inception September 18, 2008 (first day of trading on the exchange) to October 31, 2008 was (40.43)%. The share price total return from Fund Inception to October 31, 2008 was (38.85)%.

See Notes to Financial Statements.

93

Financial Highlights (Continued)

PowerShares Global Gold and Precious Metals Portfolio

	Six Months Ended April 30, 2011			Year Ended October 31,						For the Period September 16, 2008* through
	(unaudited)			2010			2009			October 31, 2008
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	46.70		$	34.16		$	16.55		$	25.17
Net investment income (loss)**		0.03			0.03			0.02			(0.01	)
Net realized and unrealized gain (loss) on investments		4.94			12.60			17.59			(8.61	)
Total from investment operations		4.97			12.63			17.61			(8.62	)
Distributions to shareholders from:
Net investment income		(0.93	)		(0.09	)		—			—
Capital gains		—			(0.00	)(a)		—			—
Total distributions		(0.93	)		(0.09	)		—			—
Net asset value at end of period	$	50.74		$	46.70		$	34.16		$	16.55
Share price at end of period***	$	50.98		$	46.77		$	34.31		$	16.74
NET ASSET VALUE TOTAL RETURN****		12.17	%		37.05	%		106.41	%		(34.25	)%(b)
SHARE PRICE TOTAL RETURN****		12.48	%		36.65	%		104.96	%		(33.49	)%(b)
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	68,503		$	58,377		$	27,325		$	1,655
Ratio to average net assets of:
Expenses		0.75	%†		0.75	%		0.75	%		0.75	%†
Net investment income (loss)		0.13	%†		0.07	%		0.08	%		(0.22	)%†
Portfolio turnover rate ††		3	%		27	%		29	%		18	%
Undistributed net investment income included in price of units issued and redeemed**#	$	0.02		$	0.15		$	0.66		$	—

PowerShares Global Nuclear Energy Portfolio

	Six Months Ended April 30, 2011			Year Ended October 31,						For the Period April 1, 2008* through
	(unaudited)			2010			2009			October 31, 2008
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	19.85		$	18.48		$	14.11		$	24.87
Net investment income**		0.24			0.17			0.17			0.07
Net realized and unrealized gain (loss) on investments		1.16			1.72			4.28			(10.82	)
Total from investment operations		1.40			1.89			4.45			(10.75	)
Distributions to shareholders from:
Net investment income		(0.61	)		(0.52	)		(0.08	)		(0.01	)
Net asset value at end of period	$	20.64		$	19.85		$	18.48		$	14.11
Share price at end of period***	$	20.58		$	19.86		$	18.29		$	14.25
NET ASSET VALUE TOTAL RETURN****		7.09	%		10.46	%		31.67	%		(43.25	)%(c)
SHARE PRICE TOTAL RETURN****		6.71	%		11.65	%		29.03	%		(42.68	)%(c)
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	30,955		$	39,701		$	35,114		$	26,802
Ratio to average net assets of:
Expenses		0.75	%†		0.75	%		0.75	%		0.75	%†
Net investment income		2.26	%†		0.89	%		1.03	%		0.57	%†
Portfolio turnover rate ††		9	%		31	%		62	%		16	%
Undistributed net investment income (loss) included in price of units issued and redeemed**#	$	0.13		$	(0.01	)	$	0.01		$	0.01

*  Commencement of Investment Operations.

**  Based on average shares outstanding.

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

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

†  Annualized.

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

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

(a)  Amount represents less than $(0.005).

(b)  The net asset value total return from Fund Inception September 18, 2008 (first day of trading on the exchange) to October 31, 2008 was (39.49)%. The share price total return from Fund Inception to October 31, 2008 was (38.93)%.

(c)  The net asset value total return from Fund Inception April 3, 2008 (first day of trading on the exchange) to October 31, 2008 was (44.95)%. The share price total return from Fund Inception to October 31, 2008 was (45.05)%.

See Notes to Financial Statements.

94

Financial Highlights (Continued)

PowerShares Global Steel Portfolio

	Six Months Ended April 30, 2011			Year Ended October 31,						For the Period September 16, 2008* through
	(unaudited)			2010			2009			October 31, 2008
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	21.36		$	18.99		$	12.82		$	24.58
Net investment income**		0.14			0.23			0.23			0.08
Net realized and unrealized gain (loss) on investments		2.37			2.25			5.94			(11.84	)
Total from investment operations		2.51			2.48			6.17			(11.76	)
Distributions to shareholders from:
Net investment income		(0.19	)		(0.11	)		—			—
Net asset value at end of period	$	23.68		$	21.36		$	18.99		$	12.82
Share price at end of period***	$	23.72		$	21.29		$	19.04		$	12.91
NET ASSET VALUE TOTAL RETURN****		11.78	%		13.09	%		48.13	%		(47.84	)%(a)
SHARE PRICE TOTAL RETURN****		12.34	%		12.42	%		47.48	%		(47.48	)%(a)
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	8,289		$	5,341		$	2,848		$	1,282
Ratio to average net assets of:
Expenses		0.75	%†		0.75	%		0.75	%		0.75	%†
Net investment income		1.19	%†		1.04	%		1.45	%		4.03	%†
Portfolio turnover rate ††		19	%		46	%		20	%		280	%
Undistributed net investment income included in price of units issued and redeemed**#	$	0.01		$	0.02		$	0.08		$	—

*  Commencement of Investment Operations.

**  Based on average shares outstanding.

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

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

†  Annualized.

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

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

(a)  The net asset value total return from Fund Inception September 18, 2008 (first day of trading on the exchange) to October 31, 2008 was (45.35)%. The share price total return from Fund Inception to October 31, 2008 was (44.30)%.

See Notes to Financial Statements.

95

Financial Highlights (Continued)

PowerShares Global Water Portfolio

	Six Months Ended April 30, 2011			Year Ended October 31,									For the Period June 13, 2007* through
	(unaudited)			2010			2009			2008			October 31, 2007
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	18.68		$	17.15		$	12.34		$	26.79		$	24.63
Net investment income (loss)**		0.09			0.22			0.25			0.32			(0.03	)
Net realized and unrealized gain (loss) on investments		2.58			1.56			4.78			(14.77	)		2.19
Total from investment operations		2.67			1.78			5.03			(14.45	)		2.16
Distributions to shareholders from:
Net investment income		(0.10	)		(0.25	)		(0.22	)		—			—
Net asset value at end of period	$	21.25		$	18.68		$	17.15		$	12.34		$	26.79
Share price at end of period***	$	21.37		$	18.69		$	17.03		$	12.14
NET ASSET VALUE TOTAL RETURN****		14.36	%		10.47	%		41.25	%		(53.94	)%		8.77	%
SHARE PRICE TOTAL RETURN****		14.94	%		11.30	%		42.58	%		(55.10	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	381,497		$	322,155		$	280,424		$	197,517		$	241,094
Ratio to average net assets of:
Expenses		0.75	%†		0.75	%		0.75	%		0.75	%		0.75	%†
Net investment income (loss)		0.91	%†		1.23	%		1.82	%		1.49	%		(0.29	)%†
Portfolio turnover rate ††		6	%		27	%		36	%		54	%		24	%
Undistributed net investment income included in price of units issued and redeemed**#	$	0.00	(a)	$	0.00	(a)	$	0.02		$	0.01		$	0.01

PowerShares Global Wind Energy Portfolio

	Six Months Ended April 30, 2011			Year Ended October 31,						For the Period June 27, 2008* through
	(unaudited)			2010			2009			October 31, 2008
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	10.19		$	15.56		$	10.08		$	24.44
Net investment income (loss)**		0.01			0.01			0.02			(0.01	)
Net realized and unrealized gain (loss) on investments		1.07			(5.38	)		5.51			(14.35	)
Total from investment operations		1.08			(5.37	)		5.53			(14.36	)
Distribution to shareholders from:
Net investment income		(0.02	)		—			(0.05	)		—
Net asset value at end of period	$	11.25		$	10.19		$	15.56		$	10.08
Share price at end of period***	$	11.28		$	10.21		$	15.41		$	10.39
NET ASSET VALUE TOTAL RETURN****		10.59	%		(34.51	)%		55.02	%		(58.76	)%(b)
SHARE PRICE TOTAL RETURN****		10.67	%		(33.74	)%		48.93	%		(57.49	)%(b)
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	28,690		$	26,482		$	43,558		$	14,107
Ratio to average net assets of:
Expenses		0.75	%†		0.75	%		0.75	%		0.75	%†
Net investment income (loss)		0.23	%†		0.06	%		0.17	%		(0.19	)%†
Portfolio turnover rate ††		28	%		41	%		86	%		44	%
Undistributed net investment income (loss) included in price of units issued and redeemed**#	$	0.00	(a)	$	0.00	(a)	$	(0.01	)	$	(0.02	)

*  Commencement of Investment Operations.

**  Based on average shares outstanding.

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

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

†  Annualized.

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

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

(a)  Amount represents less than $0.005.

(b)  The net asset value total return from Fund Inception July1, 2008 (first day of trading on the exchange) to October 31, 2008 was (58.09)%. The share price total return from Fund Inception to October 31, 2008 was (57.28)%.

See Notes to Financial Statements.

96

Financial Highlights (Continued)

PowerShares MENA Frontier Countries Portfolio

	Six Months Ended April 30, 2011			Year Ended October 31,						For the Period July 7, 2008* through
	(unaudited)			2010			2009			October 31, 2008
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	13.69		$	14.38		$	14.98		$	25.00
Net investment income (loss)**		0.40			0.35			0.29			(0.02	)
Net realized and unrealized gain (loss) on investments		(1.08	)		(0.90	)		(0.93	)		(10.00	)
Total from investment operations		(0.68	)		(0.55	)		(0.64	)		(10.02	)
Distributions to shareholders from:
Net investment income		(0.22	)		(0.21	)		—			—
Transaction fees**		—			0.07			0.04			—
Net asset value at end of period	$	12.79		$	13.69		$	14.38		$	14.98
Share price at end of period***	$	12.70		$	13.74		$	14.10		$	15.13
NET ASSET VALUE TOTAL RETURN****		(5.08	)%		(3.26	)%		(4.00	)%		(40.08	)%(a)
SHARE PRICE TOTAL RETURN****		(6.11	)%		(0.96	)%		(6.81	)%		(39.48	)%(a)
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	26,866		$	21,557		$	17,253		$	19,474
Ratio to average net assets of:
Expenses, after waivers		0.70	%†		0.70	%		0.70	%		0.70	%†
Expenses, prior to waivers		0.70	%†		0.95	%		0.95	%		0.95	%†
Net investment income (loss), after waivers		6.12	%†		2.71	%		2.33	%		(0.32	)%†
Portfolio turnover rate ††		22	%		139	%		126	%		70	%
Undistributed net investment income (loss) included in price of units issued and redeemed**#	$	0.03		$	0.07		$	0.10		$	(0.03	)

*  Commencement of Investment Operations.

**  Based on average shares outstanding.

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

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

†  Annualized.

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

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

(a)  The net asset value total return from Fund Inception July 9, 2008 (first day of trading on the exchange) to October 31, 2008 was (39.35)%. The share price total return from Fund Inception to October 31, 2008 was (38.25)%.

See Notes to Financial Statements.

97

Notes to Financial Statements

PowerShares Exchange-Traded Fund Trust II

April 30, 2011 (Unaudited)

Note 1. Organization

PowerShares Exchange-Traded Fund Trust II (the "Trust") was organized as a Massachusetts business trust on October 10, 2006 and is authorized to have multiple series of portfolios. The Trust is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the "1940 Act"). As of April 30, 2011, the Trust offered forty-five portfolios. This report includes the following portfolios:

Full Name	Short Name
PowerShares DWA Developed Markets Technical Leaders Portfolio	"DWA Developed Markets Technical Leaders Portfolio"
PowerShares DWA Emerging Markets Technical Leaders Portfolio	"DWA Emerging Markets Technical Leaders Portfolio"
PowerShares Dynamic Developed International Opportunities Portfolio	"Dynamic Developed International Opportunities Portfolio"
PowerShares Emerging Markets Infrastructure Portfolio	"Emerging Markets Infrastructure Portfolio"
PowerShares FTSE RAFI Asia Pacific ex-Japan Portfolio	"FTSE RAFI Asia Pacific ex-Japan Portfolio"
PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio	"FTSE RAFI Developed Markets ex-U.S. Portfolio"
PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio	"FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio"
PowerShares FTSE RAFI Emerging Markets Portfolio	"FTSE RAFI Emerging Markets Portfolio"
PowerShares Global Agriculture Portfolio	"Global Agriculture Portfolio"
PowerShares Global Clean Energy Portfolio	"Global Clean Energy Portfolio"
PowerShares Global Coal Portfolio	"Global Coal Portfolio"
PowerShares Global Gold and Precious Metals Portfolio	"Global Gold and Precious Metals Portfolio"
PowerShares Global Nuclear Energy Portfolio	"Global Nuclear Energy Portfolio"
PowerShares Global Steel Portfolio	"Global Steel Portfolio"
PowerShares Global Water Portfolio	"Global Water Portfolio"
PowerShares Global Wind Energy Portfolio	"Global Wind Energy Portfolio"
PowerShares MENA Frontier Countries Portfolio	"MENA Frontier Countries 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 Shares." Each Fund's Shares are listed and traded on the following exchange:

Fund	Exchange
DWA Developed Markets Technical Leaders Portfolio	NYSE Arca, Inc.
DWA Emerging Markets Technical Leaders Portfolio	NYSE Arca, Inc.
Dynamic Developed International Opportunities Portfolio	NYSE Arca, Inc.
Emerging Markets Infrastructure Portfolio	NYSE Arca, Inc.

98

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust II

April 30, 2011 (Unaudited)

Fund	Exchange
FTSE RAFI Asia Pacific ex-Japan Portfolio	NYSE Arca, Inc.
FTSE RAFI Developed Markets ex-U.S. Portfolio	NYSE Arca, Inc.
FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio	NYSE Arca, Inc.
FTSE RAFI Emerging Markets Portfolio	NYSE Arca, Inc.
Global Agriculture Portfolio	NASDAQ Stock Market
Global Clean Energy Portfolio	NYSE Arca, Inc.
Global Coal Portfolio	NASDAQ Stock Market
Global Gold and Precious Metals Portfolio	NASDAQ Stock Market
Global Nuclear Energy Portfolio	NYSE Arca, Inc.
Global Steel Portfolio	NASDAQ Stock Market
Global Water Portfolio	NYSE Arca, Inc.
Global Wind Energy Portfolio	NASDAQ Stock Market
MENA Frontier Countries Portfolio	NASDAQ Stock Market

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 generally in-kind for securities included in a specified index, except for MENA Frontier Countries Portfolio, which issues and redeems Creation Units principally for cash and partially in-kind for securities included in the relevant index. Except when aggregated in Creation Units by Authorized Participants, Shares are not individually redeemable securities of the Funds.

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

Fund	Index
DWA Developed Markets Technical Leaders Portfolio	Dorsey Wright® Developed Markets Technical Leaders Index
DWA Emerging Markets Technical Leaders Portfolio	Dorsey Wright® Emerging Markets Technical Leaders Index
Dynamic Developed International Opportunities Portfolio	QSG Developed International Opportunities Index
Emerging Markets Infrastructure Portfolio	S-Network Emerging Infrastructure Builders IndexSM
FTSE RAFI Asia Pacific ex-Japan Portfolio	FTSE RAFI Developed Asia Pacific ex Japan Index
FTSE RAFI Developed Markets ex-U.S. Portfolio	FTSE RAFI Developed ex U.S. Index
FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio	FTSE RAFI Developed ex U.S. Mid Small 1500 Index
FTSE RAFI Emerging Markets Portfolio	FTSE RAFI Emerging Markets Index
Global Agriculture Portfolio	NASDAQ OMX Global Agriculture IndexSM
Global Clean Energy Portfolio	WilderHill New Energy Global Innovation Index
Global Coal Portfolio	NASDAQ OMX Global Coal IndexSM
Global Gold and Precious Metals Portfolio	NASDAQ OMX Global Gold and Precious Metals IndexSM

99

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust II

April 30, 2011 (Unaudited)

Fund	Index
Global Nuclear Energy Portfolio	WNA Nuclear Energy IndexSM
Global Steel Portfolio	NASDAQ OMX Global Steel IndexSM
Global Water Portfolio	Palisades Global Water Index
Global Wind Energy Portfolio	NASDAQ OMX Clean Edge® Global Wind Energy Index
MENA Frontier Countries Portfolio	NASDAQ OMX Middle East North Africa IndexSM

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.

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

100

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust II

April 30, 2011 (Unaudited)

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 economical 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.

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

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

B. Other Risks

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

With respect to each of FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio and FTSE RAFI Emerging Markets Portfolio, each Fund's use of a representative sampling approach will result in the Funds holding a smaller number of securities than are in its respective Underlying Index. As a result, an adverse development respecting an issuer of securities held by the Funds could result in a greater decline in net asset values than would be the case if the Funds held all of the securities in their respective Underlying Indices. To the extent the assets in the Funds are smaller, these risks will be greater.

Pursuant to the methodology of the Index Provider used to calculate and maintain the Underlying Index of the MENA Frontier Countries Portfolio, when a security in the Underlying Index reaches its limitation on foreign ownership, it will be removed from the Underlying Index that day. As a result, the Fund may be forced to sell securities at inopportune times or for prices other than at current market values or may elect not to sell such securities on the day that they are removed from the Underlying Index, due to market

101

Notes to Financial Statements (Continued)

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April 30, 2011 (Unaudited)

conditions or otherwise. Due to these factors, the variation between the Fund's annual return and the return of its Underlying Index may increase significantly.

Non-Diversified Fund Risk. Emerging Markets Infrastructure Portfolio, FTSE RAFI Emerging Markets Portfolio, Global Agriculture Portfolio, Global Coal Portfolio, Global Gold and Precious Metals Portfolio, Global Nuclear Energy Portfolio, Global Steel Portfolio, Global Water Portfolio, Global Wind Portfolio and MENA Frontier Countries Portfolio are considered non-diversified and can invest a greater portion of their assets in securities of individual issuers than a diversified fund. As a result, changes in the market value of a single investment could cause greater fluctuations in Share price than would occur in a diversified fund.

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

Non-Correlation Risk. A 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 a Fund and its Underlying Index may vary due to asset valuation differences and differences between a Fund's portfolio and its Underlying Index resulting from legal restrictions, cost or liquidity constraints.

Foreign, Frontier and Emerging Market Securities Risk. 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, and less reliable, financial information, higher transactional costs, taxation by foreign governments, decreased market liquidity and political instability. As certain Funds 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 or countries, 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.

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

Cash Transaction Risk. With respect to MENA Frontier Countries Portfolio, unlike most exchange-traded funds ("ETFs"), the Fund currently effects creations and redemptions principally for cash and partially in-kind, rather than primarily in-kind, because of the nature of the Fund's investments. As such, investments in the Fund's Shares may be less tax efficient than investments in conventional ETFs.

102

Notes to Financial Statements (Continued)

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April 30, 2011 (Unaudited)

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 investments.

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

D. Investment Income and Investment Transactions

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

E. Expenses

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

F. Dividends and Distributions to Shareholders

Each Fund declares and pays dividends from net investment income, if any, to its shareholders quarterly and records on ex-dividend date, except with respect to Global Agriculture Portfolio, Global Coal Portfolio, Global Gold and Precious Metals Portfolio, Global Steel Portfolio, Global Wind Energy Portfolio and MENA Frontier Countries Portfolio, which are declared and paid annually. Each Fund distributes net realized taxable capital gains, if any, generally annually in cash and records them on ex-dividend date. Such distributions on a tax basis are determined in conformity with income tax regulations which may differ from GAAP. Distributions in excess of tax basis earnings and profits, if any, are reported in such Fund's financial statements as a return of capital at fiscal period-end.

G. Equalization

All of the Funds use the accounting practice of equalization. This accounting method is used to keep the continuing shareholders' 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

103

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust II

April 30, 2011 (Unaudited)

undistributed net investment income. The amount of equalization is disclosed in the Statement 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.

H. Foreign Currency Transactions

The accounting records of the Funds are maintained in U.S. dollars. Foreign currencies, as well as investment securities and other assets and liabilities denominated in currencies other than the U.S. dollar, are translated into U.S. dollars using the applicable exchange rates as of the close of London world markets. The effects of changes in foreign currency exchange rates on investments in securities are not segregated in the Statements of Operations from the effects of changes in market prices of those securities, but are included with the net realized and unrealized gain or loss on investments in securities. Certain foreign exchange gains and losses included in realized and unrealized gains or losses are included in or are a reduction of ordinary income in accordance with U.S. Federal income tax regulations.

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. As compensation for its services, each Fund has agreed to pay the Adviser an annual unitary management fee. The Adviser has agreed to pay substantially all expenses of the Funds, including the cost of transfer agency, custody, fund administration, legal, audit and other services, except for distribution fees, if any, brokerage expenses, taxes, interest, litigation expenses and other extraordinary expenses. The unitary management fee is paid by each Fund to the Adviser at the following annual rates:

	% of Average Daily Net Assets
DWA Developed Markets Technical Leaders Portfolio		0.80	%
DWA Emerging Markets Technical Leaders Portfolio		0.90	%
Dynamic Developed International Opportunities Portfolio		0.75	%
Emerging Markets Infrastructure Portfolio		0.75	%
FTSE RAFI Asia Pacific ex-Japan Portfolio		0.80	%
FTSE RAFI Developed Markets ex-U.S. Portfolio		0.75	%
FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio		0.75	%
FTSE RAFI Emerging Markets Portfolio		0.85	%
Global Agriculture Portfolio		0.75	%
Global Clean Energy Portfolio		0.75	%
Global Coal Portfolio		0.75	%
Global Gold and Precious Metals Portfolio		0.75	%
Global Nuclear Energy Portfolio		0.75	%
Global Steel Portfolio		0.75	%
Global Water Portfolio		0.75	%
Global Wind Energy Portfolio		0.75	%
MENA Frontier Countries Portfolio		0.95	%*

104

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust II

April 30, 2011 (Unaudited)

* The Adviser has voluntarily agreed to waive a portion of its unitary management fee until April 20, 2012. After giving effect to such waiver, the Fund's net unitary management fee is 0.70% of average daily net assets of the Fund. The fee waiver may be modified or terminated by the Adviser at its discretion after April 20, 2012.

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

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

Fund	Licensor
DWA Developed Markets Technical Leaders Portfolio	Dorsey Wright & Associates, Inc.
DWA Emerging Markets Technical Leaders Portfolio	Dorsey Wright & Associates, Inc.
Dynamic Developed International Opportunities Portfolio	Quantitative Services Group, LLC
Emerging Markets Infrastructure Portfolio	S-Network Global Indexes, LLC
FTSE RAFI Asia Pacific ex-Japan Portfolio	FTSE International Ltd.
FTSE RAFI Developed Markets ex-U.S. Portfolio	FTSE International Ltd.
FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio	FTSE International Ltd.
FTSE RAFI Emerging Markets Portfolio	FTSE International Ltd.
Global Agriculture Portfolio	The NASDAQ OMX Group, Inc.
Global Clean Energy Portfolio	WilderHill New Energy Finance, LLC
Global Coal Portfolio	The NASDAQ OMX Group, Inc.
Global Gold and Precious Metals Portfolio	The NASDAQ OMX Group, Inc.
Global Nuclear Energy Portfolio	WNA GLOBAL INDEXES, LLC
Global Steel Portfolio	The NASDAQ OMX Group, Inc.
Global Water Portfolio	Water Index Associates, LLC
Global Wind Energy Portfolio	The NASDAQ OMX Group, Inc.
MENA Frontier Countries Portfolio	The NASDAQ OMX Group, Inc.

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 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 each Fund may track its respective Index.

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 accounting and transfer agent for each Fund.

Note 4. 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

105

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust II

April 30, 2011 (Unaudited)

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

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

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

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

Except for the Funds listed below, as of April 30, 2011, the securities in each Fund were valued based on Level 1 inputs. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

With respect to each Fund, during the six-month period ended April 30, 2011, there were no significant transfers between investment levels.

	Investment in Securities
	Level 1		Level 2		Level 3		Total
DWA Emerging Markets Technical Leaders Portfolio
Equity Securities	$	323,043,278	$	1,743,043	$	—	$	324,786,321
Money Market Fund		216,692		—		—		216,692
Total		323,259,970		1,743,043		—		325,003,013
Emerging Markets Infrastructure Portfolio
Equity Securities		248,245,723		8,016		—		248,253,739
FTSE RAFI Asia Pacific ex-Japan Portfolio
Equity Securities		81,747,272		242,031		—		81,989,303
FTSE RAFI Developed Markets ex-U.S. Portfolio
Equity Securities		276,973,821		106,228		—		277,080,049
FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio
Equity Securities		80,306,917		165,624		17,823		80,490,364
FTSE RAFI Emerging Markets Portfolio
Equity Securities		565,384,169		614		—		565,384,783

106

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust II

April 30, 2011 (Unaudited)

	Investment in Securities
	Level 1		Level 2		Level 3		Total
Global Gold and Precious Metals Portfolio
Equity Securities	$	68,338,202	$	178,276	$	—	$	68,516,478
Money Market Fund		48,346		—		—		48,346
Total		68,386,548		178,276		—		68,564,824
MENA Frontier Countries Portfolio
Equity Securities		26,720,965		108,392		—		26,829,357

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

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from GAAP. Reclassifications are made to the Fund's capital accounts to reflect income and gains available for distributions (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund's fiscal year-end.

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

The following Funds have capital loss carryforward amounts as of October 31, 2010, which expire on October 31 of each year listed below:

	2015		2016		2017		2018		Total*
DWA Developed Markets Technical Leaders Portfolio	$	—	$	17,174,329	$	6,761,697	$	1,071,796	$	25,007,822
DWA Emerging Markets Technical Leaders Portfolio		—		15,429,745		5,190,203		602,165		21,222,113
Dynamic Developed International Opportunities Portfolio		47,847		23,676,544		19,713,557		980,146		44,418,094
Emerging Markets Infrastructure Portfolio		—		—		—		78,015		78,015
FTSE RAFI Asia Pacific ex-Japan Portfolio		—		566,386		4,187,699		923,451		5,677,536
FTSE RAFI Developed Markets ex-U.S. Portfolio		54,729		2,040,934		8,801,477		5,207,587		16,104,727
FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio		2,199		1,081,645		2,633,165		695,775		4,412,784
FTSE RAFI Emerging Markets Portfolio		5,426		6,580,140		11,700,199		450,469		18,736,234
Global Agriculture Portfolio		—		—		—		—		—
Global Clean Energy Portfolio		155,633		34,356,421		65,130,758		22,796,787		122,439,599
Global Coal Portfolio		—		—		—		—		—

107

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust II

April 30, 2011 (Unaudited)

	2015		2016		2017		2018		Total*
Global Gold and Precious Metals Portfolio	$	—	$	—	$	—	$	—	$	—
Global Nuclear Energy Portfolio		—		519,741		7,430,576		3,007,820		10,958,137
Global Steel Portfolio		—		156,658		58,943		290,126		505,727
Global Water Portfolio		589,102		64,839,461		41,990,185		1,909,380		109,328,128
Global Wind Energy Portfolio		—		1,187,533		3,588,287		8,606,198		13,382,018
MENA Frontier Countries Portfolio		—		2,297,569		9,819,468		3,704,750		15,821,787

*   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 six-month period ended April 30, 2011, the cost of securities purchased and proceeds from sales of securities, excluding short-term securities, money market funds and in-kind transactions, were as follows:

	Purchases		Sales
DWA Developed MarketsTechnical Leaders Portfolio	$	59,919,062	$	60,202,342
DWA Emerging Markets Technical Leaders Portfolio		284,001,916		287,478,620
Dynamic Developed International Opportunities Portfolio		8,558,321		8,230,682
Emerging Markets Infrastructure Portfolio		37,872,427		13,288,437
FTSE RAFI Asia Pacific ex-Japan Portfolio		20,898,692		11,213,046
FTSE RAFI Developed Markets ex-U.S. Portfolio		37,114,185		36,069,303
FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio		54,434,416		53,693,209
FTSE RAFI Emerging Markets Portfolio		119,236,260		89,498,069
Global Agriculture Portfolio		15,798,443		5,556,523
Global Clean Energy Portfolio		53,536,310		51,651,354
Global Coal Portfolio		4,292,278		3,268,041
Global Gold and Precious Metals Portfolio		1,833,921		3,362,695
Global Nuclear Energy Portfolio		3,055,361		3,303,138
Global Steel Portfolio		2,183,088		1,485,078
Global Water Portfolio		23,240,552		21,154,366
Global Wind Energy Portfolio		7,388,729		7,378,390
MENA Frontier Countries Portfolio		12,222,748		5,195,554

108

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust II

April 30, 2011 (Unaudited)

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

	Securities Received		Securities Delivered
DWA Developed MarketsTechnical Leaders Portfolio	$	66,818,806	$	38,010,539
DWA Emerging Markets Technical Leaders Portfolio		89,488,825		92,387,514
Dynamic Developed International Opportunities Portfolio		17,100,881		22,592,593
Emerging Markets Infrastructure Portfolio		62,675,303		20,683,724
FTSE RAFI Asia Pacific ex-Japan Portfolio		17,843,407		—
FTSE RAFI Developed Markets ex-U.S. Portfolio		64,749,866		—
FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio		54,576,874		44,052,245
FTSE RAFI Emerging Markets Portfolio		66,981,555		77,805,643
Global Agriculture Portfolio		73,268,077		667,224
Global Clean Energy Portfolio		48,716,505		18,697,873
Global Coal Portfolio		21,922,411		1,068,286
Global Gold and Precious Metals Portfolio		5,589,326		1,006,099
Global Nuclear Energy Portfolio		1,947,913		12,316,771
Global Steel Portfolio		4,143,143		2,494,184
Global Water Portfolio		29,564,941		18,342,757
Global Wind Energy Portfolio		2,289,312		2,708,565
MENA Frontier Countries Portfolio		—		—

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

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

	Cost		Net Unrealized Appreciation (Depreciation)		Gross Unrealized Appreciation		Gross Unrealized (Depreciation)
DWA Developed MarketsTechnical Leaders Portfolio	$	121,993,677	$	19,658,372	$	21,033,172	$	(1,374,800	)
DWA Emerging Markets Technical Leaders Portfolio		284,070,525		40,932,488		47,379,397		(6,446,909	)
Dynamic Developed International Opportunities Portfolio		28,541,082		3,748,439		4,535,880		(787,441	)
Emerging Markets Infrastructure Portfolio		204,184,079		44,069,660		50,397,708		(6,328,048	)
FTSE RAFI Asia Pacific ex-Japan Portfolio		66,939,575		15,049,728		16,810,668		(1,760,940	)
FTSE RAFI Developed Markets ex-U.S. Portfolio		238,355,564		38,724,485		53,039,065		(14,314,580	)
FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio		75,885,983		4,604,381		8,747,120		(4,142,739	)
FTSE RAFI Emerging Markets Portfolio		478,354,611		87,030,172		105,025,415		(17,995,243	)

109

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust II

April 30, 2011 (Unaudited)

	Cost		Net Unrealized Appreciation (Depreciation)			Gross Unrealized Appreciation		Gross Unrealized (Depreciation)
Global Agriculture Portfolio	$	134,121,784	$	16,104,845		$	18,173,733	$	(2,068,888	)
Global Clean Energy Portfolio		205,925,368		5,966,645			33,243,387		(27,276,742	)
Global Coal Portfolio		37,739,116		7,001,520			8,160,031		(1,158,511	)
Global Gold and Precious Metals Portfolio		51,582,221		16,982,603			19,033,479		(2,050,876	)
Global Nuclear Energy Portfolio		35,478,900		(4,534,673	)		4,050,792		(8,585,465	)
Global Steel Portfolio		7,972,554		308,624			790,930		(482,306	)
Global Water Portfolio		339,477,676		41,929,440			68,243,003		(26,313,563	)
Global Wind Energy Portfolio		30,920,833		(2,238,416	)		3,508,252		(5,746,668	)
MENA Frontier Countries Portfolio		29,926,686		(3,097,329	)		2,690,949		(5,788,278	)

Note 7. Trustees' Fees

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

The Trust has adopted a deferred compensation plan (the "Plan"). Under the Plan, an Independent Trustee who has executed a Deferred Fee Agreement (a "Participating Trustee") may defer receipt of all or a portion of his compensation ("Deferral Fees"). Such Deferral Fees are deemed to be invested in select PowerShares Funds. The Deferral Fees payable to the Participating Trustee are valued as of the date such 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 8. Capital

Shares are created and redeemed by the Trust only in Creation Unit size aggregations of 50,000 Shares (100,000 Shares for DWA Developed Markets Technical Leaders Portfolio, FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio and FTSE RAFI Developed Markets ex-U.S. Portfolio and 75,000 Shares for Global Clean Energy Portfolio and MENA Frontier Countries Portfolio). Only Authorized Participants are permitted to purchase or redeem Creation Units from the Funds. Except for MENA Frontier Countries Portfolio, 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 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.

MENA Frontier Countries Portfolio (the "Fund") currently effects redemptions principally for cash and partially in-kind, rather than primarily in-kind redemptions, because of the nature of the Fund's investments. The Fund may be required to sell portfolio securities in order to obtain the cash needed to distribute redemption proceeds. The Fund may recognize a capital gain on these sales that might not have been incurred if the Fund had made a redemption entirely in-kind, which may decrease the tax efficiency of the Fund compared to ETFs that utilize an entirely in-kind redemption process.

110

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust II

April 30, 2011 (Unaudited)

MENA Frontier Countries Portfolio charges fixed and variable transaction fees for creations and redemptions which are treated as increases in capital.

Note 9. 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.

111

Board Considerations Regarding Continuation of Investment Advisory Agreement

At a meeting held on April 14, 2011, the Board of Trustees of the PowerShares Exchange-Traded Fund Trust II (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 40 series (each, a "Fund" and collectively, the "Funds"):

PowerShares 1-30 Laddered Treasury Portfolio

PowerShares Build America Bond Portfolio

PowerShares CEF Income Composite Portfolio

PowerShares DWA Developed Markets Technical Leaders Portfolio

PowerShares DWA Emerging Markets Technical Leaders Portfolio

PowerShares Dynamic Developed International Opportunities Portfolio

PowerShares Emerging Markets Infrastructure Portfolio

PowerShares Emerging Markets Sovereign Debt Portfolio

PowerShares FTSE RAFI Asia Pacific ex-Japan Portfolio

PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio

PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio

PowerShares FTSE RAFI Emerging Markets Portfolio

PowerShares Fundamental High Yield^® Corporate Bond Portfolio

PowerShares Global Agriculture Portfolio

PowerShares Global Clean Energy Portfolio

PowerShares Global Coal Portfolio

PowerShares Global Gold and Precious Metals Portfolio

PowerShares Global Nuclear Energy Portfolio

PowerShares Global Steel Portfolio

PowerShares Global Water Portfolio

PowerShares Global Wind Energy Portfolio

PowerShares Ibbotson Alternative Completion Portfolio

PowerShares Insured California Municipal Bond Portfolio

PowerShares Insured National Municipal Bond Portfolio

PowerShares Insured New York Municipal Bond Portfolio

PowerShares International Corporate Bond Portfolio

PowerShares MENA Frontier Countries Portfolio

PowerShares Preferred Portfolio

PowerShares RiverFront Tactical Balanced Growth Portfolio

PowerShares RiverFront Tactical Growth & Income Portfolio

PowerShares S&P SmallCap Consumer Discretionary Portfolio

PowerShares S&P SmallCap Consumer Staples Portfolio

PowerShares S&P SmallCap Energy Portfolio

PowerShares S&P SmallCap Financials Portfolio

PowerShares S&P SmallCap Health Care Portfolio

PowerShares S&P SmallCap Industrials Portfolio

PowerShares S&P SmallCap Information Technology Portfolio

PowerShares S&P SmallCap Materials Portfolio

PowerShares S&P SmallCap Utilities Portfolio

PowerShares VRDO Tax-Free Weekly 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,

112

Board Considerations Regarding Continuation of Investment Advisory Agreement (Continued)

determined to approve the continuation of the Investment Advisory Agreement for each Fund. No single factor was determinative in the Board's analysis.

Nature, Extent and Quality of Services. In evaluating the nature, extent and quality of the Adviser's services, the Trustees reviewed information concerning the functions performed by the Adviser for the Funds, information describing the Adviser's current organization and projected staffing, including operations assistance provided by the Adviser's parent organization, Invesco Ltd., and the background and experience of the persons responsible for the day-to-day management of the Funds. The Trustees reviewed matters related to the Adviser's execution of portfolio transactions on behalf of the Funds. The Trustees also reviewed information on the performance of the Funds and the performance of their underlying indices through December 31, 2010, including reports on the correlation and tracking error between the underlying index and each Fund's performance, as well as the Adviser's analysis of the tracking error between each Fund and its underlying index. The Trustees noted that the correlation for each Fund, other than PowerShares VRDO Tax-Free Weekly Portfolio, was within the targeted range set forth in the Trust's registration statement and the tracking error for each Fund was within the targeted range set forth in the Trust's registration statement. The Trustees reviewed the reasons for PowerShares VRDO Tax-Free Weekly Portfolio's level of correlation to its underlying index, including the Adviser's representation that a primary cause is the abnormally low yield environment and its expectation that, over time, the Fund's correlation will return to within the targeted range set forth in the Trust's registration statement. The Trustees concluded that each Fund's correlation to its underlying index and the tracking error for each Fund were 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 total expense ratio and unitary advisory fee, as compared to information compiled by the Adviser from Lipper Inc. databases on the expense ratios of comparable exchange-traded funds ("ETFs"), open-end (non-ETF) index funds and open-end actively-managed funds. The Trustees noted that the annual advisory fee charged to each Fund, as set forth below, is a unitary fee and that the Adviser pays all other operating expenses of each Fund, except that each Fund pays its brokerage expenses, taxes, interest and extraordinary expenses.

0.25%:  PowerShares 1-30 Laddered Treasury Portfolio, PowerShares Ibbotson Alternative Completion Portfolio, PowerShares RiverFront Tactical Balanced Growth Portfolio, PowerShares RiverFront Tactical Growth & Income Portfolio, PowerShares VRDO Tax-Free Weekly Portfolio

0.29%:  PowerShares S&P SmallCap Consumer Discretionary Portfolio, PowerShares S&P SmallCap Consumer Staples Portfolio, PowerShares S&P SmallCap Energy Portfolio, PowerShares S&P SmallCap Financials Portfolio, PowerShares S&P SmallCap Health Care Portfolio, PowerShares S&P SmallCap Industrials Portfolio, PowerShares S&P SmallCap Information Technology

113

Board Considerations Regarding Continuation of Investment Advisory Agreement (Continued)

Portfolio, PowerShares S&P SmallCap Materials Portfolio, PowerShares S&P SmallCap Utilities Portfolio

0.35%:  PowerShares Build America Bond Portfolio, PowerShares Insured California Municipal Bond Portfolio, PowerShares Insured National Municipal Bond Portfolio, PowerShares Insured New York Municipal Bond Portfolio

0.50%:  PowerShares CEF Income Composite Portfolio, PowerShares Emerging Markets Sovereign Debt Portfolio, PowerShares Fundamental High Yield^® Corporate Bond Portfolio, PowerShares International Corporate Bond Portfolio, PowerShares Preferred Portfolio

0.75%:  PowerShares Dynamic Developed International Opportunities Portfolio, PowerShares Emerging Markets Infrastructure Portfolio, PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio, PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio, PowerShares Global Agriculture Portfolio, PowerShares Global Clean Energy Portfolio, PowerShares Global Coal Portfolio, PowerShares Global Gold and Precious Metals Portfolio, PowerShares Global Nuclear Energy Portfolio, PowerShares Global Steel Portfolio, PowerShares Global Water Portfolio, PowerShares Global Wind Energy Portfolio

0.80%:  PowerShares DWA Developed Markets Technical Leaders Portfolio, PowerShares FTSE RAFI Asia Pacific ex-Japan Small-Mid Portfolio

0.85%:  PowerShares FTSE RAFI Emerging Markets Portfolio

0.90%:  PowerShares DWA Emerging Markets Technical Leaders Portfolio

0.95%:  PowerShares MENA Frontier Countries Portfolio

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 each Fund's advisory fee was:

•  higher than the median expense ratio of its ETF peer funds (except for the advisory fee of each of PowerShares DWA Developed Markets Technical Leaders Portfolio, PowerShares Emerging Markets Sovereign Debt Portfolio, PowerShares Fundamental High Yield^® Corporate Bond Portfolio, PowerShares Global Agriculture Portfolio, PowerShares Ibbotson Alternative Completion Portfolio, PowerShares S&P SmallCap Consumer Discretionary Portfolio, PowerShares S&P SmallCap Consumer Staples Portfolio, PowerShares S&P SmallCap Energy Portfolio, PowerShares S&P SmallCap Financials Portfolio, PowerShares S&P SmallCap Health Care Portfolio, PowerShares S&P SmallCap Industrials Portfolio, PowerShares S&P SmallCap Information Technology Portfolio, PowerShares S&P SmallCap Materials Portfolio and PowerShares S&P SmallCap Utilities Portfolio, which was equal to or lower 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 advisory fee of each of PowerShares CEF Income Composite Portfolio, PowerShares DWA Developed Markets Technical Leaders Portfolio, PowerShares Global Agriculture Portfolio, PowerShares Global Clean Energy Portfolio, PowerShares Global Coal Portfolio, PowerShares Global Gold and Precious Metals

114

Board Considerations Regarding Continuation of Investment Advisory Agreement (Continued)

Portfolio, PowerShares Global Nuclear Energy Portfolio, PowerShares Global Steel Portfolio, PowerShares Global Water Portfolio, PowerShares Global Wind Energy Portfolio, PowerShares Ibbotson Alternative Completion Portfolio, PowerShares RiverFront Tactical Balanced Growth Portfolio, PowerShares RiverFront Tactical Growth & Income Portfolio, PowerShares S&P SmallCap Consumer Discretionary Portfolio, PowerShares S&P SmallCap Consumer Staples Portfolio, PowerShares S&P SmallCap Financials Portfolio, PowerShares S&P SmallCap Health Care Portfolio, PowerShares S&P SmallCap Industrials Portfolio, PowerShares S&P SmallCap Information Technology Portfolio, PowerShares S&P SmallCap Materials Portfolio and PowerShares S&P SmallCap Utilities Portfolio, which was lower than the median expense ratio of its open-end index peer funds; and there was no comparable open-end index peer fund information available for PowerShares Dynamic Developed International Opportunities Portfolio, PowerShares Emerging Markets Sovereign Debt Portfolio, PowerShares FTSE RAFI Asia Pacific ex-Japan Portfolio, PowerShares Fundamental High Yield^® Corporate Bond Portfolio, PowerShares Insured California Municipal Bond Portfolio, PowerShares Insured National Municipal Bond Portfolio, PowerShares Insured New York Municipal Bond Portfolio, PowerShares International Corporate Bond Portfolio or PowerShares VRDO Tax-Free Weekly Portfolio); but

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

The Trustees considered that the Adviser had agreed to waive a portion of its advisory fee, at least until April 20, 2012, for PowerShares Build America Bond Portfolio, PowerShares Insured California Municipal Bond Portfolio, PowerShares Insured National Municipal Bond Portfolio, PowerShares Insured New York Municipal Bond Portfolio and PowerShares MENA Frontier Countries Portfolio. 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.

Economies of Scale and Whether Fee Levels Reflect These Economies of Scale. The Trustees reviewed the information provided by the Adviser as to the extent to which economies of scale are realized as each Fund grows and whether fee levels reflect economies of scale for the benefit of shareholders. The Trustees reviewed each Fund's asset size and expense ratio. The Trustees noted that any reduction in fixed costs associated with the management of the Funds would be enjoyed by the Adviser, but a unitary fee provides certainty in expenses for the Funds. The Trustees considered whether the advisory fee rate for each Fund was reasonable in relation to the asset size of that Fund, and concluded that the flat advisory fee was reasonable and appropriate.

115

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.

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.

116

PROXY VOTING POLICIES AND PROCEDURES

A description of the Funds' proxy voting policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities is available, without charge and upon request, by calling (800) 983-0903. This information is also available on the Securities and Exchange Commission's ("Commission") website at www.sec.gov.

Information regarding how the Funds voted proxies for portfolio securities, if applicable, during the most recent 12-month period ended June 30, is also available, without charge and upon request, by (i) calling (800) 983-0903; or (ii) accessing the Trust's Form N-PX on the Commission's website at www.sec.gov.

QUARTERLY PORTFOLIOS

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

301 West Roosevelt Road
Wheaton, IL 60187

800.983.0903
www.invescopowershares.com

© 2011 Invesco PowerShares Capital Management LLC  P-PS-SAR-8

2011 Semi-Annual Report to Shareholders

April 30, 2011

PowerShares 1-30 Laddered Treasury Portfolio (PLW)

PowerShares Build America Bond Portfolio (BAB)

PowerShares CEF Income Composite Portfolio (PCEF)

PowerShares Emerging Markets Sovereign Debt Portfolio (PCY)

PowerShares Fundamental High Yield^® Corporate Bond Portfolio (PHB)

PowerShares Insured California Municipal Bond Portfolio (PWZ)

PowerShares Insured National Municipal Bond Portfolio (PZA)

PowerShares Insured New York Municipal Bond Portfolio (PZT)

PowerShares International Corporate Bond Portfolio (PICB)

PowerShares Preferred Portfolio (PGX)

PowerShares VRDO Tax-Free Weekly Portfolio (PVI)

Table of Contents

Frequency Distribution of Discounts & Premiums	2
Fees and Expenses	4
Fixed Income Portfolios
Schedules of Investments
PowerShares 1-30 Laddered Treasury Portfolio (PLW)	6
PowerShares Build America Bond Portfolio (BAB)	7
PowerShares CEF Income Composite Portfolio (PCEF)	17
PowerShares Emerging Markets Sovereign Debt Portfolio (PCY)	20
PowerShares Fundamental High Yield® Corporate Bond Portfolio (PHB)	24
PowerShares Insured California Municipal Bond Portfolio (PWZ)	31
PowerShares Insured National Municipal Bond Portfolio (PZA)	34
PowerShares Insured New York Municipal Bond Portfolio (PZT)	41
PowerShares International Corporate Bond Portfolio (PICB)	44
PowerShares Preferred Portfolio (PGX)	49
PowerShares VRDO Tax-Free Weekly Portfolio (PVI)	51
Statements of Assets and Liabilities	56
Statements of Operations	58
Statements of Changes in Net Assets	60
Financial Highlights	64
Notes to Financial Statements	70
Board Considerations Regarding Continuation of Investment Advisory Agreement	83

Frequency Distribution of Discounts & Premiums

Since Inception through April 30, 2011

					Closing Price Above NAV (bps)
Ticker	Fund Name	Inception	Trading Days		0-24		25-49		50-99		100-149		150-199		200+
PLW	PowerShares 1-30 Laddered Treasury Portfolio	10/11/07		896		476		82		7		0		0		0
BAB	PowerShares Build America Bond Portfolio	11/17/08		366		132		71		26		2		0		0
PCEF	PowerShares CEF Income Composite Portfolio	2/19/10		303		161		5		11		2		6		33
PCY	PowerShares Emerging Markets Sovereign Debt Portfolio	10/11/07		896		138		63		66		106		88		186
PHB	PowerShares Fundamental High Yield® Corporate Bond Portfolio	11/15/07		871		128		67		166		119		61		144
PWZ	PowerShares Insured California Municipal Bond Portfolio	10/11/07		896		315		93		58		29		11		20
PZA	PowerShares Insured National Municipal Bond Portfolio	10/11/07		896		402		110		62		28		14		7
PZT	PowerShares Insured New York Municipal Bond Portfolio	10/11/07		896		258		72		58		23		14		22
PICB	PowerShares International Corporate Bond Portfolio	6/3/10		231		42		57		78		31		0		0
PGX	PowerShares Preferred Portfolio	1/31/08		819		251		134		94		63		49		97
PVI	PowerShares VRDO Tax-Free Weekly Portfolio	11/15/07		871		486		3		0		0		0		0

2

	Closing Price Below NAV (bps)
Ticker	-0-24		-25-49		-50-99		-100-149		-150-199		-200+
PLW		302		25		4		0		0		0
BAB		107		22		5		0		1		0
PCEF		68		3		10		1		1		2
PCY		148		38		17		7		4		35
PHB		89		34		42		3		5		13
PWZ		275		61		27		4		3		0
PZA		199		51		17		5		0		1
PZT		353		63		29		2		1		1
PICB		15		5		3		0		0		0
PGX		108		10		6		3		2		2
PVI		377		5		0		0		0		0

3

Fees and Expenses

As a shareholder of a Fund of the PowerShares Exchange-Traded Fund Trust II, you incur a unitary management fee. The expense examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other funds.

The example is based on an investment of $1,000 invested at the beginning of the period and held through the six-month period ended April 30, 2011.

In addition to the fees and expenses which the PowerShares CEF Income Composite Portfolio and the PowerShares Build America Bond Portfolio (the "Portfolios") bear directly, the Portfolios indirectly bear a pro rata share of the fees and expenses of the investment companies in which the Portfolios invest. The amount of fees and expenses incurred indirectly by the Portfolios will vary because the investment companies have varied expenses and fee levels and the Portfolios may own different proportions of the investment companies at different times. Estimated investment companies expenses are not expenses that are incurred directly by the Portfolios. They are expenses that are incurred directly by the investment companies and are deducted from the value of the investment companies the Portfolios invests in. The effect of the estimated investment companies expenses that you bear indirectly are included in the Portfolios' total return.

Actual Expenses

The first line in the following table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading "Expenses Paid During Period" to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line in the following table provides information about hypothetical account values and hypothetical expenses based on each Fund's actual expense ratio and an assumed annualized rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only, and do not reflect any transactional costs such as sales charges and brokerage commissions. Therefore the second line in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

	Beginning Account Value November 1, 2010		Ending Account Value April 30, 2011		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During the Six-Month Period(1)
PowerShares 1-30 Laddered Treasury Portfolio Actual	$	1,000.00	$	967.68		0.25	%	$	1.22
Hypothetical (5% return before expenses)	$	1,000.00	$	1,023.55		0.25	%	$	1.25
PowerShares Build America Bond Portfolio Actual	$	1,000.00	$	1,020.40		0.28	%	$	1.40
Hypothetical (5% return before expenses)	$	1,000.00	$	1,023.41		0.28	%	$	1.40

4

Fees and Expenses (Continued)

	Beginning Account Value November 1, 2010		Ending Account Value April 30, 2011		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During the Six-Month Period(1)
PowerShares CEF IncomeActual	$	1,000.00	$	1,039.40		0.50	%	$	2.53
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.32		0.50	%	$	2.51
PowerShares Emerging Markets SovereignActual	$	1,000.00	$	973.49		0.50	%	$	2.45
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.32		0.50	%	$	2.51
PowerShares Fundamental High Yield® Corporate Bond Portfolio Actual	$	1,000.00	$	1,042.03		0.50	%	$	2.53
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.32		0.50	%	$	2.51
PowerShares Insured California Municipal Bond Portfolio Actual	$	1,000.00	$	951.01		0.28	%	$	1.35
Hypothetical (5% return before expenses)	$	1,000.00	$	1,023.41		0.28	%	$	1.40
PowerShares Insured National Municipal Bond Portfolio Actual	$	1,000.00	$	963.12		0.28	%	$	1.36
Hypothetical (5% return before expenses)	$	1,000.00	$	1,023.41		0.28	%	$	1.40
PowerShares Insured New York Municipal Bond Portfolio Actual	$	1,000.00	$	959.24		0.28	%	$	1.36
Hypothetical (5% return before expenses)	$	1,000.00	$	1,023.41		0.28	%	$	1.40
PowerShares International Corporate Bond Portfolio Actual	$	1,000.00	$	1,047.11		0.50	%	$	2.54
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.32		0.50	%	$	2.51
PowerShares Preferred Portfolio
Actual	$	1,000.00	$	1,044.25		0.50	%	$	2.53
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.32		0.50	%	$	2.51
PowerShares VRDO Tax-Free Weekly Portfolio
Actual	$	1,000.00	$	1,002.35		0.25	%	$	1.24
Hypothetical (5% return before expenses)	$	1,000.00	$	1,023.55		0.25	%	$	1.25

⁽¹⁾  Expenses are calculated using the annualized expense ratio, which represents the ongoing expenses as a percentage of net assets for the six months ended April 30, 2011. Expenses are calculated by multiplying the Fund's annualized expense ratio by the average account value for the period; then multiplying the result by 181 and then dividing the result by 365.

5

Portfolio Composition

PowerShares 1-30 Laddered Treasury Portfolio

Duration Breakdown (% of the Fund's Net Assets) as of April 30, 2011 (Unaudited)

Maturing in 1 to 5 Years	16.4
Maturing in 6 to 10 Years	16.5
Maturing in 11 to 15 Years	16.4
Maturing in 16 to 20 Years	23.1
Maturing in 21 to 25 Years	10.0
Maturing in 26 to 30 Years	16.6
Other assets less liabilities	1.0

Schedule of Investments

PowerShares 1-30 Laddered Treasury Portfolio

April 30, 2011 (Unaudited)

Principal Amount			Value
		United States Government Obligations—99.0%
		United States Treasury Notes—23.0%
$	8,988,000	4.625%, 02/29/12	$	9,317,329
	8,803,000	3.875%, 02/15/13		9,337,368
	8,631,000	4.000%, 02/15/14		9,371,376
	8,567,000	4.000%, 02/15/15		9,392,242
	8,402,000	4.500%, 02/15/16		9,430,590
	8,361,000	4.625%, 02/15/17		9,430,949
	8,962,000	3.500%, 02/15/18		9,466,811
				65,746,665
		United States Treasury Bonds—76.0%
	6,574,000	8.875%, 02/15/19		9,390,039
	6,590,000	8.500%, 02/15/20		9,387,659
	6,762,000	7.875%, 02/15/21		9,393,899
	6,573,000	8.000%, 11/15/21		9,263,822
	7,017,000	7.125%, 02/15/23		9,406,071
	7,491,000	6.250%, 08/15/23		9,408,232
	6,660,000	7.625%, 02/15/25		9,406,211
	7,641,000	6.000%, 02/15/26		9,431,859
	7,183,000	6.625%, 02/15/27		9,429,936
	7,433,000	6.125%, 11/15/27		9,321,450
	8,258,000	5.250%, 02/15/29		9,448,960
	7,295,000	6.250%, 05/15/30		9,337,600
	24,430,000	5.375%, 02/15/31		28,388,417
	27,724,000	4.500%, 02/15/36		28,417,100
	8,909,000	4.750%, 02/15/37		9,464,423
	9,485,000	4.375%, 02/15/38		9,480,552
	11,134,000	3.500%, 02/15/39		9,496,957
	9,154,000	4.625%, 02/15/40		9,488,698
	8,970,000	4.750%, 02/15/41		9,478,769
				216,840,654
		Total Investments (Cost $290,126,157)—99.0%		282,587,319
		Other assets less liabilities—1.0%		2,882,645
		Net Assets—100.0%	$	285,469,964

See Notes to Financial Statements.

6

Portfolio Composition

PowerShares Build America Bond Portfolio

State Breakdown (% of the Fund's Net Assets) as of April 30, 2011 (Unaudited)

Alaska	0.6
Arizona	1.8
California	22.7
Colorado	4.6
Connecticut	0.3
District of Columbia	0.2
Delaware	0.6
Florida	7.4
Georgia	0.8
Hawaii	1.6
Idaho	0.2
Illinois	6.7
Indiana	1.3
Kansas	0.9
Kentucky	0.6
Louisiana	0.5
Massachusetts	1.3
Maryland	0.2
Michigan	0.9
Missouri	0.8
Mississippi	0.9
North Carolina	0.7
New Hampshire	0.1
New Jersey	5.2
New Mexico	0.2
Nevada	4.4
New York	9.8
Ohio	3.9
Oklahoma	0.1
Oregon	0.1
Pennsylvania	1.6
South Carolina	0.3
South Dakota	0.3
Tennessee	1.2
Texas	6.4
Utah	1.7
Virginia	0.2
Washington	5.0
Wisconsin	1.4
Wyoming	0.6
Other assets less liabilities	1.9

Schedule of Investments

PowerShares Build America Bond Portfolio

April 30, 2011 (Unaudited)

Principal Amount			Interest Rate			Maturity Date	Value
		Municipal Bonds—98.1%
		Ad Valorem Property Tax—28.6%
$	3,000,000	Anchorage Alaska Ser. 10A-2		5.910	%	04/01/30	$	3,068,580
	2,000,000	Austintown Ohio Local School District Ser. 10 SD CRED PROG		6.306		11/01/47		1,864,820
	1,000,000	Beaumont California University School District Ser. 09 AGM		7.471		08/01/34		1,040,370
	3,000,000	Bexar County Texas Hospital District Ser. 10		5.263		02/15/31		2,821,680
	1,500,000	Bexar County Texas Ser. 10		5.755		06/15/40		1,504,230
	1,000,000	Bolingbrook Illinois Ref. Ser. 10B AGM		4.940		01/01/21		1,064,820
	8,575,000	California State Ser. 09		7.300		10/01/39		9,425,554
	3,135,000	California State Ser. 09		7.350		11/01/39		3,466,150
	5,995,000	California State Ser. 10		5.950		03/01/18		6,413,331
	4,175,000	California State Ser. 10		6.650		03/01/22		4,566,198
	4,500,000	California State Ser. 10		7.950		03/01/36		4,897,710
	7,500,000	California State Ser. 10		7.625		03/01/40		8,568,975
	1,010,000	Carson City Nevada (Water Improvement) Ser. 10A		6.662		11/01/39		992,547
	2,050,000	Cedar Cliff Ohio Local School District Ser. 10 SD CRED PROG		5.965		12/01/35		1,928,128
	2,000,000	Channelview Texas Independent School District Ser. 10		5.926		08/15/35		2,030,680
	2,000,000	Chicago Illinois (Recovery Zone Economic Development) Ser. 10D		6.257		01/01/40		1,806,920
	2,000,000	Chicago Illinois (Taxable Project) Ser. 10B		7.517		01/01/40		2,191,100
	1,500,000	Chicago Illinois Ser. 10C		6.207		01/01/36		1,363,050
	1,500,000	Clark County Nevada Las Vegas Convention and Visitors Auth. Ser. 10A		6.554		07/01/30		1,635,825

See Notes to Financial Statements.

7

Schedule of Investments (Continued)

PowerShares Build America Bond Portfolio

April 30, 2011 (Unaudited)

Principal Amount			Interest Rate			Maturity Date	Value
		Municipal Bonds (Continued)
$	1,620,000	Clark County Nevada Las Vegas Convention and Visitors Auth. Ser. 10A		6.754	%	07/01/38	$	1,773,608
	1,500,000	Contra Costa California Community College District Ser. 10		6.504		08/01/34		1,547,085
	1,600,000	Cook County Illinois Community Consolidated (School District No. 65) Ser. 09		4.400		12/01/20		1,658,176
	1,500,000	Cook County Illinois Ser. 10D		6.229		11/15/34		1,509,015
	1,000,000	Corona-Norco California University School District Ser. 09 AGM		7.343		08/01/35		1,043,280
	2,000,000	Corpus Christi Texas Independent School District (School Building) Ser. 10B		6.124		08/15/32		2,111,880
	200,000	Delaware State Ser. 09D		5.200		10/01/26		207,152
	500,000	Denver Colorado City & County School District No. 1 Ser. 09C		5.664		12/01/33		522,915
	1,000,000	Dickinson County Kansas University (School District No. 487) Ser. 10		7.270		09/01/35		1,045,970
	1,000,000	Dickinson County Kansas University (School District No. 487) Ser. 10		7.370		09/01/41		1,047,890
	1,000,000	Douglas County Nevada School District Ser. 10A		6.110		04/01/30		1,022,660
	200,000	Edgewood Ohio City School District Ser. 09		7.500		12/01/37		206,220
	2,000,000	Elgin Ohio Local School District Qualified School Contruction Bonds Ser. 10 SD CRED PROG		5.499		08/31/27		1,938,900
	2,000,000	Forsyth County North Carolina Ser. 10		5.166		04/01/30		1,954,140
	1,750,000	Glenwood Illinois Ser. 10 AGM		7.030		12/01/28		1,748,110
	605,000	Hallettsville Texas Independent School Ser. 10		6.265		08/15/30		611,927
	1,000,000	Hallettsville Texas Independent School Ser. 10		6.465		08/15/35		1,013,440
	1,000,000	Hawaii State Ser. 10DX		5.530		02/01/30		992,990
	2,000,000	Hayward California Unified School District Ser. 10 AGM		7.350		08/01/43		2,059,060
	1,000,000	Hillsborough County Florida Ser. 09B		6.350		07/01/39		1,029,360
	1,000,000	Holland Michigan School District Qualified School Construction Bonds (School Building & Site) Ser. 10A		6.300		05/01/27		1,000,990
	5,000,000	Illinois State Ser. 10		6.125		07/01/21		5,192,950
	3,000,000	Illinois State Ser. 10		6.630		02/01/35		2,999,610
	200,000	Itasca Illinois Ser. 09A		6.100		02/01/34		200,380
	320,000	Itasca Illinois Ser. 09A		6.200		02/01/39		321,034
	1,250,000	Katy Texas Independent School District Ser. 10		5.999		02/15/30		1,291,975
	2,000,000	Kiski Pennsylvania Area School District Ser. 10 AGM		6.526		09/01/31		2,018,660
	1,000,000	Lancaster Texas Ser. 10		6.528		02/15/40		1,011,050
	1,000,000	Las Vegas Valley Water District Nevada Ser. 09C		7.263		06/01/34		1,029,580
	1,000,000	Las Virgenes California University School District (Election of 2006) Ser. 09B-1		7.262		08/01/34		1,056,370
	500,000	Lewisville Texas Independent School District Ser. 10B		6.024		08/12/28		513,100
	3,550,000	Lexington-Fayette Urban County Kentucky Government Ser. 10		5.100		09/01/24		3,729,914
	375,000	Logan County Kansas Ser. 10		5.200		09/01/25		366,461
	3,000,000	Los Angeles California Community College District Ser. 10		6.600		08/01/42		3,248,430
	500,000	Los Angeles California Unified School District Qualified School Construction Bonds (Election of 2005) Ser. 10J-1		5.981		05/01/27		508,300
	1,000,000	Los Angeles California Unified School District Ser. 10		6.758		07/01/34		1,103,010
	200,000	Los Angeles California University School District Ser. 09KRY		5.750		07/01/34		195,630
	200,000	Louisville & Jefferson County Kentucky Metro Government (Recovery Zone Economic Development) Ser. 09E		5.450		11/15/27		206,394
	500,000	Lubbock Texas Ser. 10B		6.032		02/15/30		510,895
	4,300,000	Massachusetts State Ser. 10		4.480		05/01/24		4,295,786
	1,000,000	Montgomery County Pennsylvania Ser. 10		6.030		09/01/39		1,022,540
	3,000,000	Napa Valley California University School District Ser. 10B		6.507		08/01/43		3,054,120
	1,000,000	New Orleans Louisiana Ser. 10A		8.800		12/01/39		1,052,020
	3,000,000	New York City New York Ser. 10		4.908		06/01/21		3,103,080
	1,000,000	New York City New York Ser. 10		5.817		10/01/31		991,330
	9,000,000	New York City New York Ser. 10		5.968		03/01/36		9,327,240
	200,000	New York City Ser. 09A-2		5.206		10/01/31		191,020
	1,000,000	New York City Ser. 09D-1		6.385		12/01/29		1,037,660

See Notes to Financial Statements.

8

Schedule of Investments (Continued)

PowerShares Build America Bond Portfolio

April 30, 2011 (Unaudited)

Principal Amount			Interest Rate			Maturity Date	Value
		Municipal Bonds (Continued)
$	960,000	North Las Vegas Nevada Ser. 10		5.372	%	06/01/19	$	1,012,790
	1,000,000	NYE County Nevada Ser. 10B AGM		6.300		08/01/35		1,003,350
	1,000,000	NYE County Nevada Ser. 10B AGM		6.400		08/01/40		1,008,890
	4,000,000	Oak Lawn Illinois Ser. 10		6.110		12/01/35		3,758,360
	2,000,000	Ohio State Ser. 10E		4.861		08/01/24		2,001,980
	1,000,000	Peoria County Illinois (School District No. 150) Ser. 09D AGC		6.605		12/01/28		1,017,920
	1,450,000	Peoria County Illinois Community Unit School District No. 323 Ser. 10		6.020		04/01/28		1,387,708
	1,000,000	Philadelphia Pennsylvania School District Ser. 10		6.615		06/01/30		1,006,520
	1,025,000	Pima County Arizona Unified School District No. 13 Tanque Verde (School Improvement Project of 2009) Ser. 10A-2		5.923		07/01/27		1,060,250
	500,000	Pima County Arizona Unified School District No. 20 Vail Ser. 10 AGM		5.700		07/01/24		523,560
	1,000,000	Pima County Tucson Arizona Unified School District No. 1 School Improvement (Project of 2004) Ser. 10E-2		4.324		07/01/17		1,017,480
	500,000	Pima County Tucson Arizona Unified School District No. 1 School Improvement (Project of 2004) Ser. 10E-2		4.617		07/01/18		508,110
	1,000,000	Pima County Tucson Arizona Unified School District No. 1 School Improvement (Project of 2004) Ser. 10E-2		4.767		07/01/19		1,015,280
	1,000,000	Pima County Tucson Arizona Unified School District No. 1 School Improvement (Project of 2004) Ser. 10E-2		4.967		07/01/20		1,016,640
	1,000,000	Quaker Valley Pennsylvania School District Ser. 10 AGM		5.959		10/01/30		1,005,580
	2,000,000	Round Rock Texas Independent School District Ser. 10		5.774		08/01/30		2,094,780
	1,000,000	Round Rock Texas Independent School District Ser. 10B		6.054		08/01/35		1,005,940
	2,000,000	San Antonio Texas Independent School District Ser. 10		6.397		08/15/40		2,093,300
	1,500,000	San Francisco California City & County Ser. 10		6.260		06/15/30		1,552,545
	3,850,000	San Francisco California City & County Ser. 10D		6.260		06/15/30		3,984,866
	1,000,000	San Mateo California Union High School District Ser. 10B		6.733		09/01/34		1,020,180
	1,000,000	Santa Monica California Community College (District 2008 Election) Ser. 10A-1		6.663		08/01/30		1,047,840
	1,000,000	Santa Monica California Community College (District 2008 Election) Ser. 10A-1		6.763		08/01/34		1,022,800
	1,000,000	Santa Monica-Malibu Unified School District California Ser. 10C-1		5.796		07/01/25		1,001,040
	3,500,000	Santa Monica-Malibu Unified School District California Ser. 10C-1		6.434		07/01/30		3,570,910
	1,000,000	Snohomish County Washington Public Hospital District No. 3 (Cascade Valley Hospital) Ser. 10B		6.329		12/01/35		942,920
	200,000	Southwestern Community College District California Ser. 09B		7.130		08/01/31		202,950
	1,000,000	Tempe Arizona Ser. 10B		4.367		07/01/21		1,023,240
	1,000,000	Tustin Unified School District School Facilities Improvement District No. 2008-1 (2008 Election) Sub-Ser. 10A-1		6.539		08/01/30		1,044,910
	1,500,000	Washington State Ser. 2011T		3.640		08/01/19		1,508,445
	2,000,000	West Contra Costa California Unified School District Qualified School Construction (Election of 2005) Ser. 10D-1 AGM		6.555		08/01/24		2,064,740
	1,500,000	Westlake Ohio City School District Ser. 10		5.728		12/01/35		1,470,480
	1,500,000	Westlake Ohio City School District Ser. 10		6.028		12/01/43		1,455,840
	2,000,000	Will County Illinois High School (District No. 204 Joliet) Ser. 10		6.204		01/01/30		2,050,100
	675,000	Wilson County Tennessee Tenth Special School District Ser. 10		6.130		04/01/35		683,262
	10,000,000	Wisconsin State Ser. 10		5.000		05/01/32		9,405,600
								194,865,081
		College Revenue—6.8%
	500,000	Adams State College Colorado (Auxiliary Facilities) Rev. Ser. 09C		6.470		05/15/38		500,295
	2,000,000	Bowling Green State University Ohio General Receipts Ser. 10		6.730		06/01/39		2,065,600
	1,000,000	California Infrastructure & Economic Development Bank Rev. (California Infrastructure Economic Development) Ser. 10		6.486		05/15/49		1,024,460
	1,000,000	Colorado State Board Governors University Enterprise System Rev. Ser. 10		5.957		03/01/33		1,026,660

See Notes to Financial Statements.

9

Schedule of Investments (Continued)

PowerShares Build America Bond Portfolio

April 30, 2011 (Unaudited)

Principal Amount			Interest Rate			Maturity Date	Value
		Municipal Bonds (Continued)
$	1,145,000	Elizabeth City North Carolina University Rev. Ser. 10 AGM		8.097	%	04/01/32	$	1,264,641
	1,500,000	Fau Finance Corp. Florida Capital Improvement Rev. Ser. 10		7.099		07/01/25		1,633,440
	1,300,000	Fau Finance Corp. Florida Capital Improvement Rev. Ser. 10		7.439		07/01/30		1,395,147
	535,000	Florida State International University (Parking Facility) Rev. Ser. 09B		6.500		07/01/29		544,758
	2,000,000	Indiana University Rev. Ser. 10		5.536		06/01/30		1,975,780
	1,500,000	Indiana University Rev. Ser. 10		5.636		06/01/35		1,468,215
	1,215,000	Mesa State College Colorado (Auxiliary Facilities Enterprise) Rev. Ser. 09B		5.800		05/15/40		1,158,041
	5,000,000	Mesa State College Colorodo (Auxilary Facilities Enterprise) Rev. Ser. 10B		6.746		05/15/42		5,125,450
	1,000,000	Michigan State University Rev. General Ser. 10A		6.173		02/15/50		1,006,870
	3,000,000	New Jersey State Educational Facilities Auth. Rev. Ser. 10		6.190		07/01/40		2,797,500
	1,000,000	New Mexico State University Regents Improvement Rev. Ser. 10B		6.124		04/01/30		1,031,350
	1,000,000	North Carolina State University at Raleigh Rev. Ser. 10B		5.927		10/01/30		1,025,070
	3,000,000	Northern Arizona University Rev. (Arizona Board of Regents) Ser. 10A		6.593		08/01/30		3,016,680
	500,000	Northern Arizona University System Rev. Ser. 09A		6.687		06/01/39		506,300
	250,000	Oakland University Michigan Rev. Ser. 09B		7.150		03/01/39		251,450
	1,000,000	Pennsylvania State Higher Educational Facilties Auth. Rev. (Temple University) Ser. 10		6.141		04/01/30		1,043,130
	1,000,000	University of California Rev. Ser. 10		5.946		05/15/45		951,940
	1,000,000	University of Cincinnati Ohio General Receipts Ser. 10C AGM		5.017		06/01/20		1,018,720
	500,000	University of Colorado Enterprise System Rev. Sub-Ser. 09B-2		6.114		06/01/29		519,775
	3,000,000	University of Hawaii Rev. Ser. 10		5.834		10/01/30		3,013,590
	5,000,000	University of Hawaii Rev. Ser. 10		6.034		10/01/40		5,029,600
	1,000,000	University of Idaho University Rev. General Ser. 10C		6.520		04/01/41		1,016,790
	250,000	University of Michigan (University Rev.) Ser. 10A		5.513		04/01/30		259,235
	500,000	University of North Carolina University Ser. 09B		5.757		12/01/39		507,985
	2,000,000	University of Washington University Rev. Ref. Ser. 10B		4.897		10/01/33		1,900,400
	500,000	Utah State Board of Regents Auxiliary & Campus Facilities System Rev. Ser. 10		6.186		04/01/30		514,980
	1,435,000	Washington State Biomedical Research Facilities No. 3 Ser. 10B		6.416		07/01/30		1,472,568
	250,000	Wayne State University Ser. 09B		6.536		11/15/39		249,543
								46,315,963
		Electric Power Revenue—7.6%
	1,000,000	American Municipal Power, Inc. (Combined Hydroelectric Projects) Ser. 10		7.834		02/15/41		1,180,030
	1,000,000	American Municipal Power, Inc. Ohio Ser. 10		5.939		02/15/47		933,810
	2,000,000	American Municipal Power, Inc. Ser. 10		7.499		02/15/50		2,145,560
	200,000	Anchorage Alaska Electric Utilities Rev. Ser. 09B		6.558		12/01/39		203,366
	750,000	Benton County Washington Public Utility (District No. 1 Electric) Rev. Ser. 10		6.546		11/01/30		775,440
	6,500,000	Cowlitz County Washington Public Utility (District No. 1 Electric) Ser. 10		6.884		09/01/32		7,090,330
	2,000,000	Douglas County Washington Public Utility District No. 001 Wells Hydroelectric Ser. 10B		5.245		09/01/30		1,922,040
	1,280,000	Douglas County Washington Public Utility District No. 001 Wells Hydroelectric Ser. 10B		5.495		09/01/40		1,215,654
	2,500,000	Grant County Washington Public Utility District No. 2 (Priest Rapids Hydroelectric Project) Ref. Ser. 10L		5.730		01/01/30		2,513,600
	2,750,000	Grant County Washington Public Utility District No. 2 (Priest Rapids Hydroelectric Project) Ref. Ser. 10L		5.830		01/01/40		2,739,275
	2,000,000	Grays Harbor County Washington Public Utility District No. 1 Electric Rev. Ser. 10A		6.707		07/01/40		2,112,240
	500,000	JEA Florida Electric Systems Rev Ser. 09F		6.406		10/01/34		514,265
	4,000,000	Los Angeles California Department of Water & Power Rev. Ser. 10		5.716		07/01/39		3,917,320
	2,000,000	Los Angeles California Department of Water & Power Rev. Ser. 10		6.166		07/01/40		2,037,040
	1,500,000	Los Angeles California Department of Water & Power Rev. Ser. 10		7.000		07/01/41		1,560,615

See Notes to Financial Statements.

10

Schedule of Investments (Continued)

PowerShares Build America Bond Portfolio

April 30, 2011 (Unaudited)

Principal Amount			Interest Rate			Maturity Date	Value
		Municipal Bonds (Continued)
$	500,000	Missouri Joint Municipal Electric Utility Commission Power Project Rev. Ser. 09A		6.790	%	01/01/29	$	508,280
	1,000,000	Missouri Joint Municipal Electric Utility Commission Power Project Rev. Ser. 10		7.597		01/01/32		1,104,790
	2,450,000	Modesto California Irrigation District Financing Auth. Electric System Rev. Ser. 10A		5.477		10/01/19		2,472,369
	5,000,000	Municipal Electric Auth. of Georgia (Plant Vogtle Units 3&4 Project J) Ser. 10		6.637		04/01/57		4,761,050
	500,000	Municipal Electric Auth. of Georgia Ser. 10		6.655		04/01/57		471,185
	250,000	Northern Illinois Municipal Power Agency Power Project Rev. Ser. 10		7.620		01/01/30		271,048
	1,000,000	Nothern California Power Agency Rev. (Lodi Energy Center) Ser. 10B		7.311		06/01/40		1,038,690
	1,000,000	Oklahoma State Municipal Power Auth. (Power Supply System) Rev. Ser. 10		6.440		01/01/45		1,003,920
	1,000,000	Sacramento County California Municipal Utility District Electric Rev. Ser. 10		6.156		05/15/36		992,230
	1,900,000	Southern California Public Power Auth. (Power Project) Rev. Ser. 10		5.843		07/01/30		1,860,708
	2,000,000	Southern California Public Power Auth. Rev. Ser. 10		5.921		07/01/35		1,921,300
	2,570,000	Tacoma Washington Electric System Rev. Ser. 10 AGM		5.791		01/01/32		2,567,147
	2,000,000	Tacoma Washington Electric System Rev. Ser. 10		5.966		01/01/35		2,043,960
								51,877,262
		Fuel Sales Tax Revenue—2.8%
	5,000,000	Cape Coral Florida Gas Tax Rev. Ser. 10B		7.147		10/01/30		5,355,400
	1,000,000	Clark County Nevada Highway Improvement Rev. (Motor Vehicle Fuel) Ser. 10A-1		6.350		07/01/29		1,021,570
	1,000,000	Kansas State Department Transportation Highway Rev. Ser. 10		4.596		09/01/35		910,750
	1,000,000	Oregon State Department of Transportation Highway User Tax Rev. (Sub-Lien) Ser. 10A		5.834		11/15/34		1,023,260
	2,000,000	Washington State Ser. 10		5.090		08/01/33		1,964,180
	1,400,000	Washoe County Nevada Highway Rev. Ser. 10		7.063		02/01/30		1,434,874
	5,000,000	Washoe County Nevada Highway Rev. Ser. 10		7.213		02/01/39		5,117,150
	2,000,000	Washoe County Nevada Highway Rev. Ser. 10		7.969		02/01/40		2,282,060
								19,109,244
		General Fund—2.1%
	3,000,000	California State Ser. 10		7.700		11/01/30		3,234,390
	7,890,000	California State Various Purpose Ser. 09		7.550		04/01/39		8,950,021
	2,000,000	Kauai County Hawaii Ser. 10		5.763		08/01/33		2,056,440
								14,240,851
		Highway Tolls Revenue—3.9%
	5,000,000	Bay Area Toll Auth. California (Toll Bridge) Rev. Ser. 10S-1		6.793		04/01/30		5,225,100
	595,000	Idaho Housing & Financing Association Ser. 10A-2		6.348		07/15/28		641,612
	200,000	Illinois State Toll Highway Auth. Toll Highway Rev Ser. 09A		5.293		01/01/24		200,272
	1,000,000	Missouri State Highway & Transportation Commission State Road Rev. Ser. 10		5.020		05/01/25		1,035,660
	250,000	New Hampshire State Turnpike System Rev. Ser. 09B		6.259		11/01/29		258,285
	250,000	New Hampshire State Turnpike System Rev. Ser. 09B		6.009		11/01/39		247,608
	500,000	New Jersey State Turnpike Auth. Rev. Ser. 10A		7.102		01/01/41		563,935
	5,000,000	North Texas Tollway Auth. Rev. Subordinate Lien Ser. 10B-2		8.410		02/01/30		5,149,800
	5,000,000	North Texas Tollway Auth. Rev. Subordinate Lien Ser. 10B-2		8.910		02/01/30		5,226,850
	3,000,000	Pennsylvania State Turnpike Commission Turnpike Rev. Ser. 10B		5.561		12/01/49		2,813,160
	2,000,000	Texas State Transportation Commission Rev. (First Tier) Ser. 10B		5.028		04/01/26		2,050,740
	2,000,000	Texas State Transportation Commission Rev. (First Tier) Ser. 10B		5.178		04/01/30		2,038,900
	1,200,000	Triborough Bridge & Tunnel Auth. Ser. 09B		5.500		11/15/39		1,146,828
								26,598,750
		Hospital Revenue—1.5%
	1,000,000	Cuyahoga County Ohio Hospital Rev. Ser. 10		8.223		02/15/40		1,064,580
	2,000,000	King County Washington Public Hospital District No. 1 Hospital Facilities Rev. Ser. 10		7.900		06/15/30		2,071,900

See Notes to Financial Statements.

11

Schedule of Investments (Continued)

PowerShares Build America Bond Portfolio

April 30, 2011 (Unaudited)

Principal Amount			Interest Rate			Maturity Date	Value
		Municipal Bonds (Continued)
$	3,000,000	Lee Memorial Health System Florida Hospital Rev. Ser. 10A		7.281	%	04/01/27	$	3,237,000
	1,000,000	Medical Center Educational Building Corp. Mississippi Rev. Ser. 10		6.692		06/01/32		1,013,620
	1,000,000	New Liberty Missouri Hospital District Hospital Rev. Ser. 10B		7.000		12/01/35		1,013,030
	1,000,000	Oak Valley California Hospital District (Health Facility) Rev. Ser. 10B		9.000		11/01/39		979,920
	500,000	Tangipahoa Parish Louisiana Hospital Service District No. 1 (North Oaks Health System) Ser. 09A AGC		7.200		02/01/42		506,705
	500,000	University California Regents Medical Center Pooled Rev. Ser. 09F		6.458		05/15/29		514,905
								10,401,660
		Hotel Occupancy Tax—1.4%
	2,780,000	Dallas Texas Convention Center Hotel Development Corp. Ser. 09		7.088		01/01/42		2,911,355
	2,000,000	Metropolitan Government of Nashville & Davidson County Convention Center Auth. Ser. 10A-2		7.431		07/01/43		2,120,940
	4,775,000	Metropolitan Government of Nashville & Davidson County Convention Center Auth. Ser. 10B		6.731		07/01/43		4,797,920
								9,830,215
		Income Tax Revenue—1.2%
	1,500,000	District of Columbia Income Tax Rev. Ser. 10		5.582		12/01/35		1,531,740
	200,000	New York State Dormitory Auth. State (Personal Income Tax) Rev. Ser. 09F		5.292		03/15/25		209,246
	1,400,000	New York State Dormitory Auth. State Personal Income Tax Rev. Ser. 10C		4.904		02/15/23		1,434,440
	2,000,000	New York State Urban Development Corp. State Personal Income Tax Rev. Ser. 10C		5.838		03/15/40		2,094,100
	2,500,000	New York State Urban Development Corp. State Personal Income Tax Rev. Ser. 09		5.770		03/15/39		2,587,250
								7,856,776
		Lease Revenue—8.1%
	300,000	Beverly Hills California Public Financing Auth. Lease Rev. (Various Projects) Ser. 10C		6.674		06/01/30		298,827
	1,000,000	Beverly Hills California Public Financing Auth. Lease Rev. (Various Projects) Ser. 10C		6.774		06/01/40		1,009,630
	2,000,000	Brighton Colorado COP Ser. 10B AGM		6.550		12/01/30		1,971,700
	2,000,000	California State Public Works Board Lease Rev. (California State University Projects) Ser. 10B-2		7.804		03/01/35		2,020,840
	2,500,000	California State Public Works Board Lease Rev. (University of California Projects) Ser. 10C-2		7.004		03/01/35		2,541,375
	500,000	California State Public Works Board Ser. 09-G-2		8.361		10/01/34		532,840
	4,000,000	California State Public Works Board Ser. 10A-2		8.000		03/01/35		4,019,360
	1,000,000	Camden County New Jersey Improvement Auth. Lease Rev. Ser. 10		7.747		07/01/34		1,038,790
	5,000,000	Colorado State Building Excellent Schools Today COP Ser. 10B		6.242		03/15/30		5,140,600
	3,000,000	Colorado State Building Excellent Schools Today COP Ser. 10E		7.017		03/15/31		3,196,770
	1,000,000	Columbus Indiana Multi-High School Building Corp. Ser. 10		6.446		01/15/30		1,026,360
	2,000,000	Consolidated Wyoming Municipalities Electric Power System Joint Powers Board (Gillette Electric) Ser. 10B		6.279		06/01/25		2,027,320
	2,000,000	Consolidated Wyoming Municipalities Electric Power System Joint Powers Board (Gillette Electric) Ser. 10B		6.854		06/01/35		2,000,380
	280,000	Escondido California Union High School District COP (Qualified School Construction Bonds) Ser. 10 AGM		5.000		06/01/17		279,196
	2,000,000	Escondido California Union High School District COP (Qualified School Construction Bonds) Ser. 10 AGM		7.150		06/01/27		2,010,420
	1,000,000	Franklin County Ohio Convention Facilities Auth Ser. 10		6.390		12/01/30		1,046,870
	500,000	Las Vegas Nevada COP (City Hall Project) Ser. 09B		7.750		09/01/29		534,330

See Notes to Financial Statements.

12

Schedule of Investments (Continued)

PowerShares Build America Bond Portfolio

April 30, 2011 (Unaudited)

Principal Amount			Interest Rate			Maturity Date	Value
		Municipal Bonds (Continued)
$	500,000	Los Angeles California Municipal Improvement Corp. Lease Rev. (Recovery Zone Economic Development) Ser. 09D		7.757	%	09/01/39	$	507,770
	1,000,000	Menlo Park California Fire Protection District COP Ser. 09B		7.138		08/01/29		1,015,880
	2,000,000	Miami-Dade County Florida School Board COP Ser. 10		6.935		06/15/32		2,003,140
	1,500,000	Michigan Finance Auth. Local Government Loan Program (Local Project) Ser. 10E		8.369		11/01/35		1,713,675
	1,000,000	New Jersey State Educational Facilities Auth. Rev. Ser. 10B		7.225		07/01/30		1,052,330
	2,000,000	New York City Educational Construction Fund Rev. Ser. 10		6.000		04/01/35		1,947,640
	2,000,000	Ohio State Building Auth. State Facilities (Administration Building) Ser. 10B		6.103		10/01/29		2,081,060
	1,000,000	Passaic County New Jersey Ser. 10		6.540		08/01/31		999,870
	500,000	Peoria Illinois Public Building Commission (School District Facilities) Rev. Ser. 09C AGC		6.580		12/01/29		508,805
	1,000,000	Prescott Arizona Municipal Property Corp. Rev. Ser. 10		6.245		07/01/29		1,026,890
	3,000,000	Regional Transportation District Colorado COP Ser. 10		7.672		06/01/40		3,241,020
	500,000	Salt Lake County Utah Municipal Building Auth. (Lease Rev.) Ser. 09B		5.820		12/01/29		512,315
	3,000,000	San Francisco California City and County COP Ser. 09D		6.487		11/01/41		2,850,390
	1,000,000	St. Charles Missouri COP Ser. 10B		5.650		02/01/30		957,570
	2,000,000	USF Financing Corp. Florida COP Ser. 10		8.548		07/01/40		2,243,840
	2,250,000	Williamsburg County South Carolina Public Facilities Corp. (Installment Purchase Rev.) Ser. 10		6.526		12/01/30		2,229,255
								55,587,058
		Miscellaneous Revenue—8.1%
	500,000	Battery Park City Auth. Rev. Ser. 09A		6.375		11/01/39		510,665
	500,000	Camden County New Jersey Improvement Auth. Rev. Ser. 09A		6.180		01/15/27		514,665
	2,000,000	Commonwealth Financing Auth. Pennsylvania Rev. Ser. 10		5.587		06/01/30		1,941,280
	5,000,000	Illinois State Ser. 10		4.550		07/01/14		5,198,000
	1,500,000	Illinois State Ser. 10		7.350		07/01/35		1,611,210
	1,000,000	Indianapolis Indiana Local Public Improvement Bond Bank Ser. 10		5.854		01/15/30		1,029,110
	3,500,000	Indianapolis Indiana Local Public Improvement Bond Bank Ser. 10B-2		5.966		01/15/30		3,701,320
	500,000	Jacksonville Florida Special Rev. Ser. 09C-2		4.990		10/01/21		513,465
	500,000	Kansas State Development Finance Auth. Rev. (Kansas State Projects) Ser. 10E-2		6.120		11/01/29		536,830
	2,000,000	Kansas State Development Finance Auth. Rev. Ser. 10		5.945		03/01/30		2,239,320
	7,000,000	Miami-Dade County Florida Special Obligation Ser. 10B		6.743		04/01/40		7,047,320
	5,000,000	Mississippi Development Bank Special Obligation Ser. 10		6.413		01/01/40		5,201,600
	3,000,000	New Jersey Economic Development Auth. Rev. Ser. 10CC-1		6.425		12/15/35		3,086,700
	6,220,000	New Jersey State Turnpike Auth. Rev. Ser. 09F		7.414		01/01/40		7,133,905
	7,500,000	New York State Thruway Auth. (Second General Highway & Bridge Trust Fund) Ser. 10B		5.449		04/01/25		7,840,875
	3,000,000	Ohio State Water Development Auth. Water Pollution Control Loan Fund Rev. (Water Quality) Ser. 10B-2		4.879		12/01/34		2,918,460
	1,000,000	Port St. Lucie Florida Stormwater Utility Rev. Ser. 10A AGC		7.376		05/01/39		1,031,490
	2,000,000	St. Cloud Florida Capital Improvement Rev. Ser. 10B AGM		5.849		09/01/30		1,914,860
	1,500,000	Virginia College Building Auth. (Educational Facilities) Rev. Ser. 09F-2		5.625		02/01/28		1,543,125
								55,514,200
		Multiple Utility Revenue—0.7%
	1,000,000	Austin Texas Electric Utility System Rev. Ser. 10		4.536		11/15/20		1,025,790
	2,000,000	Colorado Springs Colorado Utilities Rev. Ser. 10		5.467		11/15/40		1,890,200
	1,500,000	Colorado Springs Colorodo Utilities Rev. Ser. 10		6.615		11/15/40		1,670,805
								4,586,795

See Notes to Financial Statements.

13

Schedule of Investments (Continued)

PowerShares Build America Bond Portfolio

April 30, 2011 (Unaudited)

Principal Amount			Interest Rate			Maturity Date	Value
		Municipal Bonds (Continued)
		Parimutuel Betting—0.6%
$	2,500,000	Florida State Board of Education Lottery Rev. Ser. 10		6.041	%	07/01/25	$	2,596,050
	1,500,000	Florida State Board of Education Lottery Rev. Ser. 10		6.584		07/01/29		1,528,605
								4,124,655
		Port, Airport & Marina Revenue—4.7%
	1,000,000	Alaska State International Airports Rev. Ser. 10D		6.284		10/01/35		980,860
	5,000,000	Chicago Illinois O'Hare International Airport Ser. 10		6.845		01/01/38		5,010,700
	5,000,000	Chicago Illinois O'Hare International Airport Ser. 10		6.395		01/01/40		4,932,300
	5,000,000	Clark County Nevada Airport System Rev. Ser. 09B		6.881		07/01/42		5,039,950
	2,000,000	Clark County Nevada Airport System Rev. Ser. 10C		6.820		07/01/45		2,118,820
	1,500,000	Denver Colorado City & County Airport Rev. Ser. 09		6.414		11/15/39		1,512,540
	250,000	Long Beach California Senior Airport Rev. Ser. 09C		7.765		06/01/39		247,580
	5,000,000	Port Authority of New York & New Jersey (Consolidated Bonds One Hundred Sixty-Fifth Series) Ser. 10		5.647		11/01/40		4,942,800
	1,910,000	San Diego County California Regional Airport Auth. Airport Rev. Subordinate Ser. 10C		6.628		07/01/40		1,911,643
	5,000,000	South Jersey Port Corp. New Jersey Rev. (Marine Terminal) Ser. 09-P-3		7.365		01/01/40		5,268,950
								31,966,143
		Resource Recovery Revenue—0.6%
	3,905,000	Delaware State Solid Waste Auth. Solid Waste System Rev. Ser. 10B		4.970		06/01/19		3,977,672
		Sales Tax Revenue—3.2%
	1,000,000	Broward County Florida Half-Cent Sales Tax Rev. Ser. 10		5.764		10/01/25		1,024,300
	5,000,000	Dallas Texas Area Rapid Transit Senior Lien Sales Tax Rev. Ser. 09		5.999		12/01/44		5,330,800
	1,000,000	Florida State Department Environmental Protection Preservation Rev. Ser. 10B		7.045		07/01/29		1,068,520
	200,000	Glendale Arizona Municipal Property Corp. (Excise Tax) Rev. Ser. 08B AGM		6.157		07/01/33		191,848
	2,000,000	Massachusetts Bay Transportation Auth. Sales Tax Rev. Ser. 10		5.769		07/01/31		2,097,660
	250,000	Massachusetts State School Building Auth. Dedicated Sales Tax Rev. Ser. 09B		5.715		08/15/39		260,632
	2,500,000	Miami-Dade County Florida Transit Sales Surtax Rev. Ser. 10B		5.534		07/01/32		2,429,175
	3,000,000	New York City Transitional Finance Auth. Rev. Ser. 10		5.508		08/01/37		3,003,000
	1,000,000	Sarasota County Florida Capital Improvement Rev. Ser. 10		6.696		10/01/29		1,029,140
	2,105,000	Sioux Falls South Dakota Sales Tax Rev. (Recovery Zone Economic Development) Ser. 09B-2		5.750		11/15/27		2,172,213
	3,000,000	Washoe County Nevada Sales Tax Rev. Ser. 10		7.451		02/01/40		3,102,090
								21,709,378
		Sewer Revenue—4.0%
	500,000	Eagle River Colorado Water & Sanitation District Ser. 09B		6.790		12/01/39		502,865
	1,500,000	East Baton Rouge Louisiana Sewerage Commission Rev. Ser. 10		6.087		02/01/45		1,529,040
	3,000,000	East Bay California Municipal Utility District Wastewater System Rev. Ser. 10		5.026		06/01/32		2,823,720
	500,000	Hollywood Florida Water & Sewer Improvement Rev. Ser. 10B		7.198		10/01/39		518,690
	1,030,000	Jurupa California Community Services District COP Ser. 10B		6.347		09/01/25		1,069,954
	1,070,000	Jurupa California Community Services District COP Ser. 10B		6.497		09/01/26		1,117,230
	1,125,000	Jurupa California Community Services District COP Ser. 10B		6.597		09/01/27		1,176,221
	1,170,000	Jurupa California Community Services District COP Ser. 10B		6.697		09/01/28		1,225,996
	500,000	Knoxville Tennessee Waste Water System Rev. Ser. 10		6.300		04/01/45		515,065
	200,000	Memphis Tennessee Sanitary Sewage System Rev. Ser. 09B AGC		6.300		10/01/29		204,432
	500,000	Metropolitan St. Louis Missouri Wastewater System Rev. Ser. 10B		5.856		05/01/39		515,110
	1,000,000	Millbrae California Wastewater Rev. COP Ser. 09A		7.423		12/01/39		1,010,820
	2,000,000	Sacramento County California Sanitation Districts Financing Auth. Rev. Ser. 10A		6.325		08/01/40		2,011,360
	5,000,000	San Francisco California City & County Public Utilities Commission Ser. 10		5.750		10/01/35		4,660,300

See Notes to Financial Statements.

14

Schedule of Investments (Continued)

PowerShares Build America Bond Portfolio

April 30, 2011 (Unaudited)

Principal Amount			Interest Rate			Maturity Date	Value
		Municipal Bonds (Continued)
$	200,000	Sarasota Florida Water & Sewer System Rev. Ser. 10B		5.425	%	10/01/30	$	189,760
	3,000,000	Timpanogos Special Service District Utah Sewer Rev. Ser. 10 AGM		6.500		06/01/30		3,139,920
	5,000,000	Timpanogos Special Service District Utah Sewer Rev. Ser. 10 AGM		6.680		06/01/35		5,220,750
								27,431,233
		Special Assessment—0.2%
	1,500,000	Macomb Interceptor Drainage District Michigan Ser. 10A		5.375		05/01/35		1,430,130
		Tax Increment Revenue—0.7%
	2,375,000	Orlando Florida Community Redevelopment Agency Tax Increment Rev. (Orlando Community Redevelopement) Ser. 10B		7.784		09/01/40		2,490,662
	500,000	Pensacola Florida Redevelopment Rev. Ser. 09B		7.263		04/01/33		522,700
	1,000,000	Temecula California Redevelopment Agency Tax Allocation Rev. (Temecula Redevelopement No. 1) Ser. 10B		7.930		08/01/30		1,022,770
	1,000,000	Temecula California Redevelopment Agency Tax Allocation Rev. (Temecula Redevelopement No. 1) Ser. 10B		8.180		08/01/39		1,017,920
								5,054,052
		Tobacco & Liquor Taxes—0.2%
	1,000,000	Ohio State Ser. 10		5.651		10/01/23		1,062,460
		Transit Revenue—4.6%
	1,000,000	Maryland State Transportation Auth. (Transportation Facilities Projects) Rev. Ser. 10B		5.604		07/01/30		1,043,180
	2,000,000	Metropolitan Transportation Auth. New York Dedicated Tax Fund (Metro Transit Auth.) Ser. 10A-2		6.089		11/15/40		2,033,600
	5,000,000	Metropolitan Transportation Auth. New York Rev. (Transportation) Ser. 10C-1		4.969		11/15/18		5,116,250
	8,000,000	Metropolitan Transportation Auth. New York Rev. Ser. 09		5.871		11/15/39		7,664,000
	1,000,000	Metropolitan Transportation Auth. New York Rev. Ser. 10		6.648		11/15/39		1,054,780
	1,000,000	Metropolitan Transportation Auth. New York Rev. Ser. 10E		7.134		11/15/30		1,053,930
	1,000,000	Metropolitan Transportation Auth. New York Rev. Ser. 10E		6.814		11/15/40		1,069,890
	500,000	Metropolitan Transportation Auth. New York Transportation Rev. Ser. 10A		6.668		11/15/39		523,210
	1,000,000	New Jersey State Transportation Trust Fund Auth System Ser. 10B		6.561		12/15/40		1,054,210
	11,000,000	New Jersey State Transportation Trust Fund Auth. Ser. 10C		5.754		12/15/28		10,936,860
								31,549,910
		Water Revenue—6.5%
	500,000	Arapahoe County Colorado Water & Wastewater Auth. Rev. Ser. 09A		6.680		12/01/39		507,450
	1,500,000	Beaumont Texas Waterworks & Sewer System Ser. 10B		6.007		09/01/30		1,495,935
	2,000,000	Central Utah Water Conservancy District Rev. Ser. 10A		5.450		10/01/28		1,979,940
	200,000	Davie Florida Water & Sewer Rev. Ser. 10B AGM		6.599		10/01/30		204,894
	2,000,000	Fresno California Water System Rev. Ser. 10A-2		6.500		06/01/30		2,034,500
	1,250,000	JEA Florida Water & Sewer System Rev. Ser. 10A		6.210		10/01/33		1,308,912
	2,000,000	Jurupa California Community Services District COP (Water Bonds) Ser. 10B		7.192		09/01/40		2,070,220
	125,000	Kalamazoo Michigan Water Supply System Rev. Ser. 09		6.710		09/01/34		126,094
	350,000	Lake City Florida Utility Rev. Ser. 10 AGM		6.175		07/01/35		345,426
	2,000,000	Los Angeles California Department of Water & Power Rev. Ser. 10		7.003		07/01/41		2,055,880
	500,000	Los Angeles California Department of Water & Power Water System Rev. Ser. 09C		5.381		07/01/24		492,145
	2,500,000	Massachusetts State Water Pollution Abatement Trust Ser. 10		5.192		08/01/40		2,456,550
	1,000,000	Metropolitan Water District of Southern California Ser. 10		6.947		07/01/40		1,078,290
	1,000,000	Moulton-Niguel California Water District COP Ser. 09		6.790		09/01/29		1,044,410
	2,000,000	New York City Municipal Water Finance Auth. Water & Sewer Rev. Ser. 10		5.724		06/15/42		2,042,160
	1,100,000	New York City Municipal Water Finance Auth. Water & Sewer Rev. Ser. 10		6.124		06/15/42		1,094,456
	1,000,000	New York City Municipal Water Finance Auth. Water & Sewer Rev. Ser. 10		5.790		06/15/41		960,080

See Notes to Financial Statements.

15

Schedule of Investments (Continued)

PowerShares Build America Bond Portfolio

April 30, 2011 (Unaudited)

Principal Amount			Interest Rate			Maturity Date	Value
		Municipal Bonds (Continued)
$	1,500,000	New York City Municipal Water Finance Auth. Water & Sewer Rev. Ser. 10		5.440	%	06/15/43	$	1,468,695
	1,000,000	New York City Municipal Water Financing Auth. Water & Sewer Rev. Ser. 10DD		6.452		06/15/41		1,015,170
	1,000,000	New York State Environmental Facilities Corp. (State Clean Water & Drinking) Ser. 10		5.707		06/15/30		1,035,140
	500,000	Passaic Valley New Jersey Water Commission Water Supply Rev. Ser. 09B		7.570		12/15/29		529,770
	500,000	Passaic Valley New Jersey Water Commission Water Supply Rev. Ser. 09B		7.820		12/15/39		520,690
	3,000,000	Polk County Florida Utility System Rev. Ser. 10B		5.935		10/01/40		2,821,710
	500,000	Riverside California Water Rev. Ser. 09B		6.349		10/01/39		499,245
	500,000	San Diego County California Water Auth. (Financing Agency Water) Rev. Ser. 10B		6.138		05/01/49		525,970
	3,000,000	San Francisco California City & County Public Utilities Commission Water Rev. Ser. 10DE		5.700		11/01/27		2,962,140
	500,000	Sarasota County Florida Utility System Rev. Ser. 10		7.126		10/01/30		546,005
	2,000,000	Seminole County Florida Water & Sewer Rev. Ser. 10B		6.443		10/01/40		2,046,980
	2,000,000	South Central Connecticut Regional Water Auth. Water System Rev. Ser. 10		6.243		08/01/30		2,043,840
	1,500,000	Sunrise Florida Utility System Rev. Ser. 10B		5.813		10/01/30		1,469,685
	1,000,000	Tacoma Washington Water System Rev. Ser. 10B		5.371		12/01/30		1,002,350
	1,275,000	Tucson Arizona Water Rev. Ser. 10		5.789		07/01/26		1,287,597
	2,500,000	Upper Eagle Regional Water Auth. Colorodo Rev. Ser. 10		6.518		12/01/39		2,556,600
	500,000	Western Nassau County Water Auth. Water System Rev. Ser. 10		6.701		04/01/40		534,070
								44,162,999
		Total Investments (Cost $653,606,280)(a)—98.1%						669,252,487
		Other assets less liabilities—1.9%						12,943,884
		Net Assets—100.0%					$	682,196,371

Investment Abbreviations:
Auth.  – Authority
COP  – Certificate of Participation
Ref.  – Refunding Bonds
Rev.  – Revenue
Ser.  – Series

Glossary of Terms:
AGC  – Assured Guaranty Corp.
AGM  – Assured Guaranty Municipal Corp.
SD CRED PROG  – School District Credit Program

Notes to Schedule of Investments:

(a)  This table, as of April 30, 2011, provides a listing of those entities that have either guaranteed, backed or otherwise enhanced the credit quality of more than 5% of the value of securities held in the portfolio. In instances where the entity has guaranteed, backed or otherwise enhanced the credit quality of a security, it is not primarily responsible for the borrower's obligations but may be called upon to satisfy the borrower's obligations.

Entities	Percentage of Total Investments
Assured Guaranty Municipal Corp.		5.2	%

See Notes to Financial Statements.

16

Portfolio Composition

PowerShares CEF Income Composite Portfolio

Asset Class Breakdown (% of the Fund's Net Assets) as of April 30, 2011 (Unaudited)

Option Income	37.0
Bonds	35.3
Bonds/High Yield	27.7
Liabilities in excess of other assets	(0.0	)

Schedule of Investments

PowerShares CEF Income Composite Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Closed-End Funds—100.0%
		Bonds—35.3%
	1,034,150	AllianceBernstein Income Fund	$	7,921,589
	105,053	BlackRock Core Bond Trust		1,298,455
	179,454	BlackRock Credit Allocation Income Trust II, Inc.		1,808,896
	81,562	BlackRock Credit Allocation Income Trust III, Inc.		875,976
	228,928	BlackRock Credit Allocation Income Trust IV		2,829,550
	39,620	BlackRock Enhanced Government Fund, Inc.		611,337
	134,222	BlackRock Income Opportunity Trust, Inc.		1,284,505
	277,929	BlackRock Income Trust, Inc.		1,887,138
	125,432	BlackRock Limited Duration Income Trust		2,187,534
	94,091	Duff & Phelps Utility and Corporate Bond Trust, Inc.		1,028,415
	52,094	Eaton Vance Short Duration Diversified Income Fund		877,263
	36,444	Eaton Vance Tax-Advantaged Bond and Options Strategies Fund		600,233
	37,414	Federated Enhanced Treasury Income Fund		571,312
	70,141	Franklin Templeton Limited Duration Income Trust		924,458
	68,823	Guggenheim Build America Bonds Managed Duration Trust		1,286,990
	43,849	Invesco Van Kampen Bond Fund(~)		797,175
	211,914	MFS Charter Income Trust		1,968,681
	112,374	MFS Government Markets Income Trust		728,183
	399,793	MFS Intermediate Income Trust		2,482,715
	302,459	MFS Multimarket Income Trust		2,032,524
	63,417	Nuveen Build American Bond Term Fund		1,160,531
	56,538	Nuveen Floating Rate Income Opportunity Fund		710,117
	32,557	Nuveen Global Government Enhanced Income Fund		486,076
	42,692	Nuveen Mortgage Opportunity Term Fund		1,060,469
	188,360	Nuveen Multi-Currency Short-Term Government Income Fund		2,770,776
	433,585	Nuveen Multi-Strategy Income and Growth Fund		3,876,250

Number of Shares			Value
		Closed-End Funds (Continued)
	609,605	Nuveen Multi-Strategy Income and Growth Fund II	$	5,608,366
	245,745	Nuveen Quality Preferred Income Fund		1,902,066
	450,507	Nuveen Quality Preferred Income Fund II		3,721,188
	88,552	Nuveen Quality Preferred Income Fund III		726,126
	67,572	PIMCO Corporate Income Fund		1,172,374
	32,334	PIMCO Income Opportunity Fund		929,602
	152,138	Putnam Master Intermediate Income Trust		903,700
	321,563	Putnam Premier Income Trust		2,083,728
	62,010	Strategic Global Income Fund, Inc.		691,411
	250,749	Templeton Global Income Fund		2,745,702
	334,360	Wells Fargo Advantage Income Opportunities Fund		3,470,657
	58,379	Western Asset Global Corporate Defined Opportunity Fund, Inc.		1,078,260
	36,677	Western Asset Investment Grade Defined Opportunity Trust, Inc.		752,612
	214,262	Western Asset/Claymore Inflation-Linked Opportunities & Income Fund		2,680,418
	99,414	Western Asset/Claymore Inflation-Linked Securities & Income Fund		1,306,300
				73,839,658
		Bonds/High Yield—27.7%
	286,527	AllianceBernstein Global High Income Fund, Inc.		4,237,734
	139,810	BlackRock Build America Bond Trust		2,463,452
	66,440	BlackRock Corporate High Yield Fund III, Inc.		471,724
	112,361	BlackRock Corporate High Yield Fund V, Inc.		1,351,703
	16,000	BlackRock Corporate High Yield Fund VI, Inc.		189,120
	54,009	BlackRock Corporate High Yield Fund, Inc.		385,624
	364,400	BlackRock Debt Strategies Fund, Inc.		1,541,412
	47,611	BlackRock Floating Rate Income		745,112
	81,001	BlackRock Floating Rate Income Strategies Fund II, Inc.		1,152,644

See Notes to Financial Statements.

17

Schedule of Investments (Continued)

PowerShares CEF Income Composite Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Closed-End Funds (Continued)
	128,492	BlackRock Floating Rate Income Strategies Fund, Inc.	$	1,983,916
	148,596	BlackRock Senior High Income Fund, Inc.		621,131
	29,064	Blackstone / GSO Senior Floating Rate Term Fund		617,319
	167,180	Credit Suisse Asset Management Income Fund, Inc.		620,238
	75,193	Eaton Vance Floating-Rate Income Trust		1,218,879
	396,162	Eaton Vance Limited Duration Income Fund		6,366,323
	64,409	Eaton Vance Senior Floating-Rate Trust		1,084,003
	95,487	Flaherty & Crumrine/Claymore Preferred Securities Income Fund, Inc.		1,702,533
	59,382	Global High Income Fund, Inc.		763,059
	386,060	ING Prime Rate Trust		2,416,736
	99,635	John Hancock Preferred Income Fund		1,910,003
	81,476	John Hancock Preferred Income Fund II		1,553,747
	116,964	John Hancock Preferred Income Fund III		1,959,147
	80,718	Morgan Stanley Emerging Markets Debt Fund, Inc.		831,395
	70,042	New America High Income Fund, Inc.		726,336
	218,925	Nuveen Floating Rate Income Fund		2,736,563
	109,846	PIMCO Corporate Opportunity Fund		2,213,397
	46,276	PIMCO Income Strategy Fund		566,881
	112,155	PIMCO Income Strategy Fund II		1,193,329
	71,137	PIMCO Strategic Global Government Fund, Inc.		827,323
	138,286	Templeton Emerging Markets Income Fund		2,375,754
	165,263	Wells Fargo Advantage Multi-Sector Income Fund		2,500,429
	124,105	Western Asset Emerging Markets Debt Fund, Inc.		2,335,656
	123,302	Western Asset Emerging Markets Income Fund, Inc.		1,660,878
	45,504	Western Asset Global High Income Fund, Inc.		587,002
	163,823	Western Asset High Income Opportunity Fund, Inc.		1,043,553
	71,685	Western Asset High Yield Defined Opportunity Fund, Inc.		1,369,184
	106,791	Western Asset Managed High Income Fund, Inc.		681,327
	27,321	Western Asset Mortgage Defined Opportunity Fund, Inc.		600,242
	21,499	Western Asset Premier Bond Fund		330,870
				57,935,678
		Option Income—37.0%
	46,893	Advent Claymore Enhanced Growth & Income Fund		573,032
	23,186	AGIC International & Premium Strategy Fund		333,878
	21,399	BlackRock EcoSolutions Investment Trust		263,422

Number of Shares			Value
		Closed-End Funds (Continued)
	97,620	BlackRock Enhanced Capital and Income Fund, Inc.	$	1,511,158
	158,156	BlackRock Enhanced Dividend Achievers Trust		1,398,099
	80,365	BlackRock Global Energy and Resources Trust		2,526,676
	159,280	BlackRock Global Opportunities Equity Trust		3,066,140
	20,808	BlackRock Health Sciences Trust		591,571
	285,014	BlackRock International Growth and Income Trust		2,972,696
	128,064	BlackRock Real Asset Equity Trust		2,010,605
	48,074	Columbia Seligman Premium Technology Growth Fund		950,904
	90,820	Dow 30 Enhanced Premium & Income Fund, Inc.		1,099,830
	27,577	Dow 30 Premium & Dividend Income Fund, Inc.		419,446
	153,698	Eaton Vance Enhanced Equity Income Fund		1,887,411
	161,756	Eaton Vance Enhanced Equity Income Fund II		1,971,806
	281,829	Eaton Vance Risk-Managed Diversified Equity Income Fund		3,505,953
	86,391	Eaton Vance Tax-Managed Buy-Write Income Fund		1,179,237
	245,087	Eaton Vance Tax-Managed Buy-Write Opportunities Fund		3,183,680
	585,863	Eaton Vance Tax-Managed Diversified Equity Income Fund		6,602,676
	416,208	Eaton Vance Tax-Managed Global Buy-Write Opportunities Fund		5,181,790
	1,191,443	Eaton Vance Tax-Managed Global Diversified Equity Income Fund		13,117,787
	76,745	First Trust Enhanced Equity Income Fund		985,406
	51,262	Guggenheim Enhanced Equity Income Fund		470,072
	24,208	ING Asia Pacific High Dividend Equity Income Fund		474,235
	42,608	ING Global Advantage and Premium Opportunity Fund		575,634
	260,142	ING Global Equity Dividend & Premium Opportunity Fund		2,942,206
	73,471	ING Infrastructure Industrials and Materials Fund		1,592,117
	43,873	ING Risk Managed Natural Resources Fund		700,213
	77,680	Madison/Claymore Covered Call & Equity Strategy Fund		685,138
	49,372	NASDAQ Premium Income & Growth Fund, Inc.		743,049
	346,601	NFJ Dividend Interest & Premium Strategy Fund		6,474,507
	89,968	Nuveen Equity Premium Advantage Fund		1,147,092
	56,732	Nuveen Equity Premium and Growth Fund		770,420

See Notes to Financial Statements.

18

Schedule of Investments (Continued)

PowerShares CEF Income Composite Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Closed-End Funds (Continued)
	133,624	Nuveen Equity Premium Income Fund	$	1,682,326
	229,795	Nuveen Equity Premium Opportunity Fund		2,883,927
	51,868	Nuveen Global Value Opportunities Fund		1,039,435
				77,513,574
		Total Investments (Cost $202,137,785)—100.0%		209,288,910
		Liabilities in excess of other assets—(0.0%)		(21,521	)
		Net Assets—100.0%	$	209,267,389

Notes to Schedule of Investments:

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

See Notes to Financial Statements.

19

Portfolio Composition

PowerShares Emerging Markets Sovereign Debt Portfolio

Country Breakdown (% of the Fund's Net Assets) as of April 30, 2011 (Unaudited)

Venezuela	4.5
Vietnam	4.4
Colombia	4.4
Uruguay	4.4
Turkey	4.4
Mexico	4.4
Panama	4.4
Brazil	4.4
Indonesia	4.3
Qatar	4.3
Russia	4.3
Hungary	4.2
Poland	4.2
El Salvador	4.2
Ukraine	4.2
Croatia	4.2
Bulgaria	4.2
Lithuania	4.2
Pakistan	4.2
South Africa	4.2
Peru	4.2
Philippines	4.1
South Korea	4.0
United States	0.3
Other assets less liabilities	1.4

Schedule of Investments

PowerShares Emerging Markets Sovereign Debt Portfolio

April 30, 2011 (Unaudited)

Principal Amount			Interest Rate			Maturity Date	Value
		Sovereign Debt Obligations—98.3%
		Brazil—4.4%
$	10,900,000	Republic of Brazil		8.750	%	02/04/25	$	14,905,750
	10,600,000	Republic of Brazil		8.250		01/20/34		14,151,000
	11,790,000	Republic of Brazil		7.125		01/20/37		14,206,950
								43,263,700
		Bulgaria—4.2%
	35,526,000	Republic of Bulgaria		8.250		01/15/15		41,609,828
		Colombia—4.4%
	10,200,000	Republic of Colombia		8.125		05/21/24		13,198,800
	14,309,000	Republic of Colombia		7.375		09/18/37		17,528,525
	12,400,000	Republic of Colombia		6.125		01/18/41		13,082,000
								43,809,325
		Croatia—4.2%
	18,944,000	Republic of Croatia		6.750		11/05/19		20,171,476
	20,400,000	Republic of Croatia		6.625		07/14/20		21,460,800
								41,632,276

See Notes to Financial Statements.

20

Schedule of Investments (Continued)

PowerShares Emerging Markets Sovereign Debt Portfolio

April 30, 2011 (Unaudited)

Principal Amount			Interest Rate			Maturity Date	Value
		Sovereign Debt Obligations (Continued)
		El Salvador—4.2%
$	15,654,000	Republic of El Salvador		8.250	%	04/10/32	$	17,415,075
	11,950,000	Republic of El Salvador		7.650		06/15/35		12,141,200
	12,500,000	Republic of El Salvador		7.625		02/01/41		12,500,000
								42,056,275
		Hungary—4.2%
	21,635,000	Republic of Hungary		4.750		02/03/15		22,024,062
	19,400,000	Republic of Hungary		6.250		01/29/20		20,146,493
								42,170,555
		Indonesia—4.3%
	12,563,000	Republic of Indonesia		8.500		10/12/35		16,583,160
	11,750,000	Republic of Indonesia		6.625		02/17/37		12,682,703
	10,950,000	Republic of Indonesia		7.750		01/17/38		13,468,500
								42,734,363
		Lithuania—4.2%
	20,175,000	Republic of Lithuania		6.750		01/15/15		22,293,375
	17,005,000	Republic of Lithuania		7.375		02/11/20		19,300,675
								41,594,050
		Mexico—4.4%
	10,350,000	United Mexican States, Series A, MTN		7.500		04/08/33		12,808,125
	13,075,000	United Mexican States, Series A, MTN		6.750		09/27/34		14,970,875
	15,000,000	United Mexican States, Series A, MTN		6.050		01/11/40		15,637,500
								43,416,500
		Pakistan—4.2%
	21,707,000	Islamic Republic of Pakistan		7.125		03/31/16		19,988,435
	24,373,000	Islamic Republic of Pakistan		6.875		06/01/17		21,448,240
								41,436,675
		Panama—4.4%
	11,470,000	Republic of Panama		7.250		03/15/15		13,488,720
	13,060,000	Republic of Panama		7.125		01/29/26		15,724,240
	10,293,000	Republic of Panama		8.875		09/30/27		14,199,194
								43,412,154
		Peru—4.2%
	13,125,000	Republic of Peru		7.350		07/21/25		15,290,625
	9,954,000	Republic of Peru		8.750		11/21/33		12,845,637
	14,900,000	Republic of Peru		5.625		11/18/50		13,186,500
								41,322,762
		Philippines—4.1%
	10,246,000	Republic of Philippines		9.500		02/02/30		14,549,320
	10,685,000	Republic of Philippines		7.750		01/14/31		13,142,550
	12,180,000	Republic of Philippines		6.375		10/23/34		12,948,716
								40,640,586
		Poland—4.2%
	12,600,000	Republic of Poland		3.875		07/16/15		12,907,289
	15,522,000	Republic of Poland		5.000		10/19/15		16,585,723
	11,250,000	Republic of Poland		6.375		07/15/19		12,639,082
								42,132,094

See Notes to Financial Statements.

21

Schedule of Investments (Continued)

PowerShares Emerging Markets Sovereign Debt Portfolio

April 30, 2011 (Unaudited)

Principal Amount			Interest Rate			Maturity Date	Value
		Sovereign Debt Obligations (Continued)
		Qatar—4.3%
$	11,275,000	State of Qatar		6.550	%	04/09/19	$	13,079,000
	9,667,000	State of Qatar		9.750		06/15/30		14,089,653
	14,000,000	State of Qatar		6.400		01/20/40		15,085,000
								42,253,653
		Russia—4.3%
	13,000,000	Russian Foreign Bond - Eurobond		3.625		04/29/15		13,221,000
	12,817,000	Russian Foreign Bond - Eurobond		11.000		07/24/18		18,039,927
	10,800,000	Russian Foreign Bond - Eurobond		5.000		04/29/20		10,989,000
								42,249,927
		South Africa—4.2%
	12,701,000	Republic of South Africa		6.875		05/27/19		14,841,119
	12,000,000	Republic of South Africa		5.500		03/09/20		12,810,000
	12,712,000	Republic of South Africa		5.875		05/30/22		13,760,740
								41,411,859
		South Korea—4.0%
	20,716,000	Republic of Korea		5.125		12/07/16		22,537,661
	14,400,000	Republic of Korea		7.125		04/16/19		17,117,554
								39,655,215
		Turkey—4.4%
	10,750,000	Republic of Turkey		8.000		02/14/34		13,313,875
	15,728,000	Republic of Turkey		6.875		03/17/36		17,292,936
	11,200,000	Republic of Turkey		7.250		03/05/38		12,852,000
								43,458,811
		Ukraine—4.2%
	13,425,000	Ukraine Government		6.580		11/21/16		13,676,719
	14,240,000	Ukraine Government		6.750		11/14/17		14,530,069
	13,200,000	Ukraine Government		7.750		09/23/20		13,794,000
								42,000,788
		Uruguay—4.4%
	12,100,000	Republic of Uruguay		8.000		11/18/22		15,215,750
	12,100,000	Republic of Uruguay		7.875		01/15/33		14,891,470
	11,125,000	Republic of Uruguay		7.625		03/21/36		13,433,437
								43,540,657
		Venezuela—4.5%
	16,900,000	Republic of Venezuela		8.500		10/08/14		16,055,000
	17,900,000	Republic of Venezuela		5.750		02/26/16		13,827,750
	14,843,000	Republic of Venezuela		13.625		08/15/18		14,546,140
								44,428,890
		Vietnam—4.4%
	20,472,000	Socialist Republic of Vietnam		6.875		01/15/16		22,209,008
	20,625,000	Socialist Republic of Vietnam		6.750		01/29/20		21,656,250
								43,865,258
		Total Sovereign Debt Obligations (Cost $956,601,642)						974,096,201

See Notes to Financial Statements.

22

Schedule of Investments (Continued)

PowerShares Emerging Markets Sovereign Debt Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Money Market Fund—0.3%
	2,767,483	Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $2,767,483)	$	2,767,483
		Total Investments (Cost $959,369,125)—98.6%		976,863,684
		Other assets less liabilities—1.4%		14,337,529
		Net Assets—100.0%	$	991,201,213

Investment Abbreviations:
MTN  – Medium-Term Notes

See Notes to Financial Statements.

23

Portfolio Composition

PowerShares Fundamental High Yield^® Corporate Bond Portfolio

Industry Breakdown (% of the Fund's Net Assets) as of April 30, 2011 (Unaudited)

Oil & Gas	10.1
Telecommunications	9.9
Diversified Financial Services	8.2
Retail	6.2
Electric	5.4
Food	4.8
Banks	4.0
Commercial Services	3.3
Chemicals	3.2
Home Builders	3.0
Auto Parts & Equipment	2.9
Healthcare - Services	2.4
REITs	2.3
Lodging	2.3
Packaging & Containers	2.2
Media	2.1
Pipelines	2.0
Iron/Steel	1.8
Building Materials	1.6
Advertising	1.5
Coal	1.3
Biotechnology	1.3
Internet	1.2
Healthcare - Products	1.2
Entertainment	1.1
Aerospace/Defense	1.0
Household Products/Wares	1.0
Holding Companies - Diversified	0.9
Forest Products & Paper	0.9
Leisure Time	0.8
Electronics	0.8
Computers	0.8
Textiles	0.7
Semiconductors	0.7
Software	0.7
Transportation	0.6
Apparel	0.5
Mining	0.5
Beverages	0.5
Pharmaceuticals	0.4
Real Estate	0.4
Miscellaneous Manufacturing	0.4
Agriculture	0.3
Machinery - Diversified	0.3
Energy - Alternate Sources	0.3
Oil & Gas Services	0.2
Money Market Fund	0.4
Other assets less liabilities	1.6

Schedule of Investments

PowerShares Fundamental High Yield^® Corporate Bond Portfolio

April 30, 2011 (Unaudited)

Principal Amount			Interest Rate			Maturity Date	Value
		Corporate Bonds—98.0%
		Advertising—1.5%
$	1,600,000	Interpublic Group of Cos., Inc. (The)		6.250	%	11/15/14	$	1,764,000
	1,500,000	Interpublic Group of Cos., Inc. (The)		10.000		07/15/17		1,796,250
	1,800,000	Lamar Media Corp.		9.750		04/01/14		2,106,000
	1,500,000	Lamar Media Corp.		7.875		04/15/18		1,620,000
								7,286,250
		Aerospace/Defense—1.0%
	1,500,000	Alliant Techsystems, Inc.		6.875		09/15/20		1,582,500
	1,475,000	BE Aerospace, Inc.		8.500		07/01/18		1,648,312
	1,500,000	Triumph Group, Inc.		8.625		07/15/18		1,666,875
								4,897,687
		Agriculture—0.3%
	1,600,000	Alliance One International, Inc.		10.000		07/15/16		1,644,000
		Apparel—0.5%
	2,400,000	Hanesbrands, Inc.		6.375		12/15/20		2,388,000

See Notes to Financial Statements.

24

Schedule of Investments (Continued)

PowerShares Fundamental High Yield^® Corporate Bond Portfolio

April 30, 2011 (Unaudited)

Principal Amount			Interest Rate			Maturity Date	Value
		Corporate Bonds (Continued)
		Auto Parts & Equipment—2.9%
$	1,800,000	Dana Holding Corp.		6.500	%	02/15/19	$	1,822,500
	2,236,000	Goodyear Tire & Rubber Co. (The)		10.500		05/15/16		2,543,450
	3,500,000	Goodyear Tire & Rubber Co. (The)		8.250		08/15/20		3,906,875
	3,030,000	Lear Corp.		8.125		03/15/20		3,378,450
	1,900,000	Tenneco, Inc.		6.875		12/15/20		1,957,000
								13,608,275
		Banks—4.0%
	3,910,000	Discover Bank		8.700		11/18/19		4,815,626
	2,230,000	M&I Marshall & Ilsley Bank		4.850		06/16/15		2,365,464
	3,700,000	Regions Bank		7.500		05/15/18		3,998,616
	2,700,000	Regions Financial Corp.		7.750		11/10/14		2,952,029
	5,050,000	Synovus Financial Corp.		5.125		06/15/17		4,747,495
								18,879,230
		Beverages—0.5%
	2,091,000	Constellation Brands, Inc.		7.250		09/01/16		2,289,645
		Biotechnology—1.3%
	1,875,000	Bio-Rad Laboratories, Inc.		4.875		12/15/20		1,879,688
	1,210,000	Life Technologies Corp.		4.400		03/01/15		1,279,162
	1,270,000	Life Technologies Corp.		6.000		03/01/20		1,393,335
	1,500,000	Talecris Biotherapeutics Holdings Corp.		7.750		11/15/16		1,657,500
								6,209,685
		Building Materials—1.6%
	1,500,000	Masco Corp.		5.875		07/15/12		1,567,625
	1,770,000	Masco Corp.		6.125		10/03/16		1,831,637
	2,500,000	Owens Corning		9.000		06/15/19		2,985,742
	1,000,000	Texas Industries, Inc.		9.250		08/15/20		1,082,500
								7,467,504
		Chemicals—3.2%
	3,000,000	Ashland, Inc.		9.125		06/01/17		3,483,750
	2,000,000	CF Industries, Inc.		7.125		05/01/20		2,295,000
	3,200,000	Huntsman International LLC		8.625		03/15/20		3,616,000
	1,800,000	Nalco Co.		8.250		05/15/17		1,968,750
	1,840,000	PolyOne Corp.		7.375		09/15/20		1,967,650
	1,615,000	Solutia, Inc.		8.750		11/01/17		1,794,669
								15,125,819
		Coal—1.3%
	1,500,000	Arch Coal, Inc.		8.750		08/01/16		1,687,500
	1,700,000	Consol Energy, Inc.		8.000		04/01/17		1,887,000
	2,500,000	Peabody Energy Corp.		6.500		09/15/20		2,690,625
								6,265,125
		Commercial Services—3.3%
	3,454,000	Avis Budget Car Rental LLC		9.625		03/15/18		3,851,210
	3,400,000	Avis Budget Car Rental LLC		8.250		01/15/19		3,629,500
	1,000,000	Cenveo Corp.		8.875		02/01/18		1,010,000
	1,000,000	Corrections Corp. of America		7.750		06/01/17		1,100,000
	1,500,000	National Money Mart Co. (Canada)		10.375		12/15/16		1,680,000
	1,800,000	PHH Corp.		7.125		03/01/13		1,881,000
	2,000,000	United Rentals North America, Inc.		9.250		12/15/19		2,270,000
								15,421,710

See Notes to Financial Statements.

25

Schedule of Investments (Continued)

PowerShares Fundamental High Yield^® Corporate Bond Portfolio

April 30, 2011 (Unaudited)

Principal Amount			Interest Rate			Maturity Date	Value
		Corporate Bonds (Continued)
		Computers—0.8%
$	3,300,000	Seagate Technology HDD Holdings (Cayman Islands)		6.800	%	10/01/16	$	3,539,250
		Diversified Financial Services—8.2%
	5,390,000	Ford Motor Credit Co. LLC		7.000		10/01/13		5,844,080
	4,600,000	Ford Motor Credit Co. LLC		8.000		12/15/16		5,353,190
	3,050,000	Icahn Enterprises LP		8.000		01/15/18		3,164,375
	7,000,000	International Lease Finance Corp.		6.375		03/25/13		7,297,500
	4,800,000	International Lease Finance Corp.		8.250		12/15/20		5,358,000
	3,200,000	SLM Corp., MTN		6.250		01/25/16		3,396,570
	3,808,000	SLM Corp., MTN		8.000		03/25/20		4,223,514
	3,800,000	Textron Financial Corp.		5.400		04/28/13		4,009,654
								38,646,883
		Electric—5.4%
	2,500,000	AES Corp. (The)		7.750		10/15/15		2,743,750
	2,633,000	AES Corp. (The)		8.000		10/15/17		2,876,552
	3,840,000	Ameren Corp.		8.875		05/15/14		4,454,930
	2,800,000	Edison Mission Energy		7.500		06/15/13		2,800,000
	3,234,000	Edison Mission Energy		7.000		05/15/17		2,579,115
	1,800,000	GenOn Energy, Inc.		7.625		06/15/14		1,894,500
	1,800,000	GenOn Energy, Inc.		7.875		06/15/17		1,827,000
	4,200,000	NRG Energy, Inc.		8.500		06/15/19		4,494,000
	1,500,000	Public Service Co. of New Mexico		7.950		05/15/18		1,700,460
								25,370,307
		Electronics—0.8%
	3,100,000	Jabil Circuit, Inc.		8.250		03/15/18		3,572,750
		Energy - Alternate Sources—0.3%
	1,275,000	Covanta Holding Corp.		7.250		12/01/20		1,369,418
		Entertainment—1.1%
	1,700,000	Cinemark USA, Inc.		8.625		06/15/19		1,870,000
	1,500,000	Pinnacle Entertainment, Inc.		8.625		08/01/17		1,657,500
	1,500,000	WMG Acquisition Corp.		9.500		06/15/16		1,605,000
								5,132,500
		Food—4.8%
	970,000	B&G Foods, Inc.		7.625		01/15/18		1,046,387
	5,600,000	Dean Foods Co.		7.000		06/01/16		5,418,000
	1,600,000	Ingles Markets, Inc.		8.875		05/15/17		1,736,000
	3,200,000	Smithfield Foods, Inc.		7.750		07/01/17		3,464,000
	5,372,000	SUPERVALU, Inc.		8.000		05/01/16		5,607,025
	1,000,000	TreeHouse Foods, Inc.		7.750		03/01/18		1,078,750
	3,400,000	Tyson Foods, Inc.		10.500		03/01/14		4,122,500
								22,472,662
		Forest Products & Paper—0.9%
	760,000	Cascades, Inc. (Canada)		7.750		12/15/17		815,100
	2,600,000	Domtar Corp.		10.750		06/01/17		3,302,000
								4,117,100

See Notes to Financial Statements.

26

Schedule of Investments (Continued)

PowerShares Fundamental High Yield^® Corporate Bond Portfolio

April 30, 2011 (Unaudited)

Principal Amount			Interest Rate			Maturity Date	Value
		Corporate Bonds (Continued)
		Healthcare - Products—1.2%
$	1,600,000	Alere, Inc.		9.000	%	05/15/16	$	1,724,000
	1,800,000	Boston Scientific Corp.		4.500		01/15/15		1,889,568
	1,800,000	Boston Scientific Corp.		6.000		01/15/20		1,951,295
								5,564,863
		Healthcare - Services—2.4%
	1,000,000	Coventry Health Care, Inc.		6.300		08/15/14		1,071,081
	1,800,000	Coventry Health Care, Inc.		5.950		03/15/17		1,892,509
	3,500,000	Health Net, Inc.		6.375		06/01/17		3,640,000
	1,600,000	Tenet Healthcare Corp.		9.000		05/01/15		1,752,000
	1,000,000	Tenet Healthcare Corp.		10.000		05/01/18		1,165,000
	1,650,000	Universal Health Services, Inc.		7.125		06/30/16		1,816,097
								11,336,687
		Holding Companies - Diversified—0.9%
	1,500,000	Leucadia National Corp.		8.125		09/15/15		1,672,500
	1,000,000	Leucadia National Corp.		7.125		03/15/17		1,055,000
	1,400,000	Susser Holdings LLC		8.500		05/15/16		1,522,500
								4,250,000
		Home Builders—3.0%
	1,500,000	Centex Corp.		6.500		05/01/16		1,582,500
	3,500,000	D.R. Horton, Inc.		6.500		04/15/16		3,675,000
	2,000,000	KB Home		6.250		06/15/15		1,990,000
	2,000,000	Lennar Corp., Series B		5.600		05/31/15		1,995,000
	1,500,000	Lennar Corp., Series B		12.250		06/01/17		1,860,000
	1,000,000	Pulte Group, Inc.		5.250		01/15/14		1,020,000
	1,750,000	Toll Brothers Finance Corp.		8.910		10/15/17		2,070,362
								14,192,862
		Household Products/Wares—1.0%
	4,340,000	Jarden Corp.		7.500		05/01/17		4,681,775
		Internet—1.2%
	1,700,000	Equinix, Inc.		8.125		03/01/18		1,848,750
	2,000,000	Expedia, Inc.		5.950		08/15/20		1,980,000
	1,500,000	Terremark Worldwide, Inc.		12.000		06/15/17		1,848,750
								5,677,500
		Iron/Steel—1.8%
	1,900,000	AK Steel Corp.		7.625		05/15/20		2,006,875
	1,975,000	Steel Dynamics, Inc.		7.375		11/01/12		2,108,312
	4,290,000	United States Steel Corp.		7.375		04/01/20		4,547,400
								8,662,587
		Leisure Time—0.8%
	1,750,000	Royal Caribbean Cruises Ltd. (Liberia)		7.000		06/15/13		1,892,188
	1,700,000	Royal Caribbean Cruises Ltd. (Liberia)		7.250		06/15/16		1,823,250
								3,715,438
		Lodging—2.3%
	1,500,000	MGM Resorts International		10.375		05/15/14		1,741,875
	1,500,000	MGM Resorts International		11.125		11/15/17		1,751,250
	1,700,000	Starwood Hotels & Resorts Worldwide, Inc.		7.875		10/15/14		1,950,750
	1,600,000	Starwood Hotels & Resorts Worldwide, Inc.		6.750		05/15/18		1,756,000

See Notes to Financial Statements.

27

Schedule of Investments (Continued)

PowerShares Fundamental High Yield^® Corporate Bond Portfolio

April 30, 2011 (Unaudited)

Principal Amount			Interest Rate			Maturity Date	Value
		Corporate Bonds (Continued)
$	1,700,000	Wyndham Worldwide Corp.		6.000	%	12/01/16	$	1,821,793
	1,500,000	Wynn Las Vegas LLC		7.750		08/15/20		1,646,250
								10,667,918
		Machinery - Diversified—0.3%
	1,450,000	Manitowoc Co., Inc. (The)		8.500		11/01/20		1,595,000
		Media—2.1%
	1,700,000	Cablevision Systems Corp.		8.625		09/15/17		1,912,500
	1,600,000	CSC Holdings LLC		8.500		06/15/15		1,754,000
	2,743,000	DISH DBS Corp.		7.125		02/01/16		2,935,010
	1,700,000	DISH DBS Corp.		7.875		09/01/19		1,848,750
	1,500,000	McClatchy Co. (The)		11.500		02/15/17		1,646,250
								10,096,510
		Mining—0.5%
	2,200,000	Vulcan Materials Co.		7.000		06/15/18		2,321,581
		Miscellaneous Manufacturing—0.4%
	1,600,000	SPX Corp.		7.625		12/15/14		1,778,000
		Oil & Gas—10.1%
	2,500,000	Anadarko Petroleum Corp.		7.625		03/15/14		2,873,518
	3,300,000	Anadarko Petroleum Corp.		6.375		09/15/17		3,732,158
	913,000	Chesapeake Energy Corp.		6.500		08/15/17		999,735
	1,500,000	Chesapeake Energy Corp.		6.625		08/15/20		1,623,750
	1,700,000	Cimarex Energy Co.		7.125		05/01/17		1,806,250
	1,000,000	Concho Resources, Inc.		7.000		01/15/21		1,057,500
	4,000,000	Denbury Resources, Inc.		8.250		02/15/20		4,480,000
	1,700,000	EXCO Resources, Inc.		7.500		09/15/18		1,731,875
	2,089,000	Forest Oil Corp.		7.250		06/15/19		2,183,005
	2,724,000	Newfield Exploration Co.		7.125		05/15/18		2,928,300
	1,500,000	Newfield Exploration Co.		6.875		02/01/20		1,593,750
	900,000	Petrohawk Energy Corp.		7.875		06/01/15		958,500
	1,000,000	Petrohawk Energy Corp.		7.250		08/15/18		1,067,500
	1,500,000	Pioneer Natural Resources Co.		6.650		03/15/17		1,652,973
	4,186,000	Plains Exploration & Production Co.		7.750		06/15/15		4,374,370
	1,000,000	Plains Exploration & Production Co.		10.000		03/01/16		1,135,000
	1,000,000	Plains Exploration & Production Co.		8.625		10/15/19		1,118,750
	2,090,000	Pride International, Inc.		6.875		08/15/20		2,420,644
	1,500,000	Quicksilver Resources, Inc.		11.750		01/01/16		1,762,500
	1,500,000	Range Resources Corp.		6.750		08/01/20		1,612,500
	1,000,000	SandRidge Energy, Inc.		8.750		01/15/20		1,105,000
	1,400,000	Southwestern Energy Co.		7.500		02/01/18		1,597,750
	2,000,000	Tesoro Corp.		6.500		06/01/17		2,075,000
	1,700,000	Whiting Petroleum Corp.		6.500		10/01/18		1,785,000
								47,675,328
		Oil & Gas Services—0.2%
	1,000,000	Key Energy Services, Inc.		6.750		03/01/21		1,030,000
		Packaging & Containers—2.2%
	2,525,000	Ball Corp.		6.750		09/15/20		2,670,187
	1,600,000	Graphic Packaging International, Inc.		9.500		06/15/17		1,800,000

See Notes to Financial Statements.

28

Schedule of Investments (Continued)

PowerShares Fundamental High Yield^® Corporate Bond Portfolio

April 30, 2011 (Unaudited)

Principal Amount			Interest Rate			Maturity Date	Value
		Corporate Bonds (Continued)
$	3,100,000	Owens-Brockway Glass Container, Inc.		7.375	%	05/15/16	$	3,433,250
	2,000,000	Sealed Air Corp.		7.875		06/15/17		2,260,390
								10,163,827
		Pharmaceuticals—0.4%
	1,800,000	Omnicare, Inc.		7.750		06/01/20		1,944,000
		Pipelines—2.0%
	4,154,000	El Paso Corp.		7.000		06/15/17		4,631,245
	4,465,000	Kinder Morgan Finance Co. ULC (Canada)		5.700		01/05/16		4,721,737
								9,352,982
		Real Estate—0.4%
	1,500,000	CB Richard Ellis Services, Inc.		11.625		06/15/17		1,781,250
		REITs—2.3%
	3,550,000	Host Hotels & Resorts LP		6.000		11/01/20		3,541,125
	6,300,000	Weyerhaeuser Co.		7.375		10/01/19		7,246,821
								10,787,946
		Retail—6.2%
	3,300,000	AutoNation, Inc.		6.750		04/15/18		3,473,250
	1,800,000	Gap, Inc. (The)		5.950		04/12/21		1,823,488
	4,800,000	J.C. Penney Co.		5.650		06/01/20		4,812,000
	3,675,000	Limited Brands, Inc.		6.900		07/15/17		3,959,812
	2,623,000	Macy's Retail Holdings, Inc.		5.750		07/15/14		2,845,955
	2,000,000	Macy's Retail Holdings, Inc.		5.900		12/01/16		2,172,500
	1,600,000	Phillips-Van Heusen Corp.		7.375		05/15/20		1,740,000
	2,650,000	Rite Aid Corp.		9.750		06/12/16		2,997,813
	3,400,000	Rite Aid Corp.		8.000		08/15/20		3,680,500
	1,700,000	Wendy's/Arby's Restaurants LLC		10.000		07/15/16		1,895,500
								29,400,818
		Semiconductors—0.7%
	3,250,000	Advanced Micro Devices, Inc.		8.125		12/15/17		3,453,125
		Software—0.7%
	3,075,000	Fidelity National Information Services, Inc.		7.625		07/15/17		3,382,500
		Telecommunications—9.9%
	1,500,000	American Tower Corp.		4.625		04/01/15		1,581,594
	1,000,000	American Tower Corp.		4.500		01/15/18		989,576
	1,500,000	Cincinnati Bell, Inc.		8.375		10/15/20		1,507,500
	1,750,000	Cricket Communications, Inc.		7.750		05/15/16		1,876,875
	972,000	Crown Castle International Corp.		9.000		01/15/15		1,083,780
	1,000,000	Crown Castle International Corp.		7.125		11/01/19		1,073,750
	1,500,000	Frontier Communications Corp.		6.250		01/15/13		1,586,250
	1,600,000	Frontier Communications Corp.		8.500		04/15/20		1,742,000
	1,500,000	GCI, Inc.		8.625		11/15/19		1,661,250
	1,600,000	Global Crossing Ltd. (Bermuda)		12.000		09/15/15		1,880,000
	2,000,000	MetroPCS Wireless, Inc.		6.625		11/15/20		2,007,500
	2,500,000	NII Capital Corp.		10.000		08/15/16		2,881,250
	1,000,000	PAETEC Holding Corp.		8.875		06/30/17		1,096,250
	2,900,000	Qwest Communications International, Inc.		8.000		10/01/15		3,197,250
	2,600,000	Qwest Communications International, Inc.		7.125		04/01/18		2,847,000

See Notes to Financial Statements.

29

Schedule of Investments (Continued)

PowerShares Fundamental High Yield^® Corporate Bond Portfolio

April 30, 2011 (Unaudited)

Principal Amount			Interest Rate			Maturity Date	Value
		Corporate Bonds (Continued)
$	2,000,000	SBA Telecommunications, Inc.		8.000	%	08/15/16	$	2,177,500
	7,330,000	Sprint Nextel Corp.		6.000		12/01/16		7,467,438
	3,900,000	Virgin Media Finance PLC, Series 1 (United Kingdom)		9.500		08/15/16		4,489,875
	1,000,000	Windstream Corp.		8.125		08/01/13		1,102,500
	4,166,000	Windstream Corp.		8.625		08/01/16		4,415,960
								46,665,098
		Textiles—0.7%
	3,300,000	Mohawk Industries, Inc., Series D		7.200		04/15/12		3,489,750
		Transportation—0.6%
	1,500,000	Bristow Group, Inc.		7.500		09/15/17		1,590,000
	1,000,000	RailAmerica, Inc.		9.250		07/01/17		1,117,500
								2,707,500
		Total Corporate Bonds (Cost $446,271,547)						462,078,645
Number of Shares
		Money Market Fund—0.4%
	1,930,214	Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $1,930,214)						1,930,214
		Total Investments (Cost $448,201,761)—98.4%						464,008,859
		Other assets less liabilities—1.6%						7,465,951
		Net Assets—100.0%					$	471,474,810

Investment Abbreviations:
MTN  – Medium-Term Notes
REIT  – Real Estate Investment Trust

See Notes to Financial Statements.

30

Portfolio Composition

PowerShares Insured California Municipal Bond Portfolio

Industry Breakdown (% of the Fund's Net Assets) as of April 30, 2011 (Unaudited)

Ad Valorem Property Tax	28.3
Lease Revenue	18.2
Electric Power Revenue	10.5
Water Revenue	8.0
Hospital Revenue	7.7
Sewer Revenue	5.9
Sales Tax Revenue	5.5
Special Assessment	4.3
Special Tax	3.6
College Revenue	2.4
Highway Tolls Revenue	1.0
General Fund	0.9
Tax Increment Revenue	0.8
Other assets less liabilities	2.9

Schedule of Investments

PowerShares Insured California Municipal Bond Portfolio

April 30, 2011 (Unaudited)

Principal Amount			Interest Rate			Maturity Date	Value
		Municipal Bonds—97.1%
		Ad Valorem Property Tax—28.3%
$	1,350,000	Antelope Valley California Community College District (Election 2004) Ser. 07B NATL RE		5.250	%	08/01/39	$	1,328,400
	500,000	Arcadia California Unified School District (Election 2006) Ser. 07A AGM		5.000		08/01/37		479,515
	1,000,000	Colton California Joint Unified School District (Election 2008) Ser. 09-A AGC		5.375		08/01/34		973,390
	1,000,000	Corona-Norco California Unified School District (Election 2006) Ser. 09C AGM		5.500		08/01/39		1,002,530
	500,000	Desert California Community College District Ser. 07C AGM		5.000		08/01/37		476,110
	1,500,000	El Monte California Union High School District (Election 2008) Ser. 09A AGC		5.500		06/01/34		1,519,440
	500,000	Los Angeles California Community College District (Election 2001) Ser. 07A NATL RE		5.000		08/01/32		498,015
	500,000	Los Angeles California Community College District Ref. (Election 2001) Ser. 05A AGM		5.000		08/01/25		513,600
	1,505,000	Los Angeles Unified School District (Election 2002) Ser. 07C AGM		5.000		07/01/32		1,459,037
	1,100,000	Puerto Rico Commonwealth Public Improvement Ref. Ser. 07A-4 AGM		5.000		07/01/31		1,034,605
	500,000	Riverside Community College District (Election 2004) Ser. 07C NATL RE		5.000		08/01/32		494,800
	400,000	San Diego California Community College District (Election 2006) Ser. 07 AGM		5.000		08/01/32		394,816
								10,174,258
		College Revenue—2.4%
	500,000	California State University Rev. Systemwide Ser. 07A AGM		5.000		11/01/37		455,200
	450,000	University of California General Revenue Ser. 03A AMBAC		5.000		05/15/36		421,340
								876,540
		Electric Power Revenue—10.5%
	800,000	Anaheim California Public Financing Auth. Rev. (Electric System Distribution Facilities) Ser. 02-A AGM		5.000		10/01/31		791,888
	1,500,000	California State Department of Water Resources Power Supply Rev. Ser. 10L		5.000		05/01/12		1,568,835
	400,000	Los Angeles California Water & Power Rev. (Power System) Sub-Ser. 07A-1 AMBAC		5.000		07/01/39		389,364
	1,000,000	Redding California Electric System Rev. COP Ser. 08A AGM		5.000		06/01/30		1,008,850
								3,758,937

See Notes to Financial Statements.

31

Schedule of Investments (Continued)

PowerShares Insured California Municipal Bond Portfolio

April 30, 2011 (Unaudited)

Principal Amount			Interest Rate			Maturity Date	Value
		Municipal Bonds (Continued)
		General Fund—0.9%
$	400,000	California State Ref. Ser. 07 NATL RE		4.250	%	08/01/33	$	331,424
		Highway Tolls Revenue—1.0%
	400,000	Puerto Rico Commonwealth Highway & Transportation Auth. Rev. Ref. Ser. 07N FGIC		5.250		07/01/39		351,580
		Hospital Revenue—7.7%
	1,000,000	California Statewide Communities Development Auth. Rev. (Catholic Healthcare West) Ser. 07K AGC		5.500		07/01/41		981,150
	1,000,000	California Statewide Communities Development Auth. Rev. (St. Joseph Health System-Remarketed) Insured Ser. 07C FGIC		5.750		07/01/47		929,890
	945,000	University of California Regents Medical Center Pooled Rev. Ser. 07A NATL RE		4.750		05/15/31		869,929
								2,780,969
		Lease Revenue—18.2%
	1,000,000	Carlsbad California University School District COP Ser. 09A AGC		5.000		10/01/34		947,160
	1,500,000	Kern County California COP (Capital Improvements Projects) Ser. 09A AGC		5.750		08/01/35		1,506,360
	1,000,000	Los Angeles California Municipal Improvement Corp. Lease Rev. (Real Property) Ser. 09B AGC		5.500		04/01/39		968,100
	400,000	Los Angeles California Municipal Improvement Corp., Lease Rev. Police Headquarters FAC Ser. 06A NATL RE		4.250		01/01/37		309,592
	500,000	Los Angeles California Municipal Improvement Corp., Lease Rev. Ser. 07B-1 NATL RE		4.750		08/01/37		424,935
	1,000,000	Richmond Joint Powers Financing Auth. Lease Rev. (Civic Center Project) Ser. 09 AGC		5.750		08/01/29		1,055,600
	400,000	Santa Clara Valley California Water District (CTFS Partner Water Utility System Improvement) Ser. 07A NATL RE		5.000		06/01/37		393,684
	1,000,000	Yuba California Levee Financing Auth. Rev. (Levee Financing Project) Ser. 08A AGC		5.000		09/01/38		949,960
								6,555,391
		Sales Tax Revenue—5.5%
	1,500,000	Los Angeles County California Metropolitan Transportation Auth. Sales Tax Rev. (Proposition A First Tier Senior) Ser. 05-A AMBAC		5.000		07/01/35		1,508,850
	500,000	San Mateo County California Transit District (Sales Tax) Rev. Ref. Ser. 05A NATL RE		4.750		06/01/34		461,435
								1,970,285
		Sewer Revenue—5.9%
	400,000	Bakersfield California Wastewater Rev. Ser. 07A AGM		5.000		09/15/32		398,416
	400,000	Clovis California Public Financing Auth. Wastewater Rev. Ser. 07 AMBAC		4.500		08/01/38		338,956
	500,000	Fresno California Sewer Rev. Ser. 08A AGC		5.000		09/01/37		479,485
	460,000	Hollister California Joint Powers Financing Auth. (Wastewater Rev. Refinancing & Improvement Project) Ser. 01 AGM		5.000		06/01/32		432,184
	500,000	Los Angeles California Wastewater System Rev. Ref. Ser. 05A NATL RE		4.750		06/01/35		477,210
								2,126,251
		Special Assessment—4.3%
	1,500,000	Sacramento California Area Flood Control Agency Consolidated Capital Assessment District Ser. 08 BHAC		5.625		10/01/37		1,547,070
		Special Tax—3.6%
	1,375,000	Tustin California Unified School District Special Tax Senior Lien (Community Facilities District No. 97-1) Ser. 02A AGM		5.000		09/01/38		1,287,481

See Notes to Financial Statements.

32

Schedule of Investments (Continued)

PowerShares Insured California Municipal Bond Portfolio

April 30, 2011 (Unaudited)

Principal Amount			Interest Rate			Maturity Date	Value
		Municipal Bonds (Continued)
		Tax Increment Revenue—0.8%
$	400,000	San Jose California Redevelopment Agency Tax Allocation Ref. (Merged Area Redevelopment Project) Ser. 06C NATL RE		4.250	%	08/01/30	$	294,156
		Water Revenue—8.0%
	1,000,000	East Bay California Municipal Utility District Water System Rev. Ref. Ser. 07A NATL RE		5.000		06/01/32		1,023,620
	500,000	East Bay California Municipal Utility District Water System Rev. Subordinated Ser. 05A NATL RE		5.000		06/01/35		501,990
	500,000	Puerto Rico Commonwealth Aqueduct & Sewer Auth. Rev. (Senior Lien) Ser. 08A AGC		5.125		07/01/47		441,935
	500,000	San Francisco City & County Public Utilities Commission Water Rev. Ser. 06A AGM		4.500		11/01/31		464,910
	500,000	San Luis Obispo County California Financing Auth. Rev. (Nacimiento Water Project) Ser. 07A NATL RE		5.000		09/01/38		458,240
								2,890,695
		Total Investments (Cost $36,022,876)(a)—97.1%						34,945,037
		Other assets less liabilities—2.9%						1,042,477
		Net Assets—100.0%					$	35,987,514

Investment Abbreviations:
Auth.  – Authority
COP  – Certificate of Participation
Ref.  – Refunding Bonds
Rev.  – Revenue
Ser.    – Series

Glossary of Terms:
AGC  – Assured Guaranty Corp.
AGM  – Assured Guaranty Municipal Corp.
AMBAC  – American Municipal Bond Assurance Corp.*
BHAC  – Berkshire Hathaway Assurance Corp.
FGIC  – Financial Guaranty Insurance Co.
NATL RE  – National Public Finance Guarantee Corp.

Notes to Schedule of Investments:

(a)  This table, as of April 30, 2011, provides a listing of those entities that have either guaranteed, backed or otherwise enhanced the credit quality of more than 5% of the value of securities held in the portfolio. In instances where the entity has guaranteed, backed or otherwise enhanced the credit quality of a security, it is not primarily responsible for the borrower's obligations but may be called upon to satisfy the borrower's obligations.

Entities	Percentage of Total Investments
Assured Guaranty Municipal Corp.		29.2	%
Assured Guaranty Corp.		28.1
National Public Finance Guarantee Corp.		22.5
American Municipal Bond Assurance Corp.*		7.6

*  Filed for bankruptcy on November 8, 2010.

See Notes to Financial Statements.

33

Portfolio Composition

PowerShares Insured National Municipal Bond Portfolio

State Breakdown (% of the Fund's Net Assets) as of April 30, 2011 (Unaudited)

Alabama	1.8
Arizona	5.0
California	17.4
Colorado	1.2
Connecticut	0.1
District of Columbia	1.8
Florida	10.4
Georgia	5.7
Guam	0.6
Iowa	0.5
Illinois	5.6
Indiana	1.7
Kentucky	2.0
Louisiana	1.3
Massachusetts	0.3
Maryland	0.1
Maine	0.8
Michigan	2.3
Missouri	1.1
North Carolina	2.2
New Hampshire	0.3
New Jersey	5.5
Nevada	0.4
New York	2.4
Ohio	0.2
Oregon	1.8
Pennsylvania	13.2
Puerto Rico	1.3
South Carolina	0.9
Texas	8.4
Virginia	0.2
Washington	1.4
Other assets less liabilities	2.1

Schedule of Investments

PowerShares Insured National Municipal Bond Portfolio

April 30, 2011 (Unaudited)

Principal Amount			Interest Rate			Maturity Date	Value
		Municipal Bonds—96.9%
		Ad Valorem Property Tax—11.8%
$	2,000,000	Arcadia California Unified School District (Election 2006) Ser. 07A AGM		5.000	%	08/01/37	$	1,918,060
	2,150,000	Beaumont Texas Independent School District School Building Ser. 09 AGC		5.000		02/15/38		2,185,432
	3,000,000	Beaver County Pennsylvania Ser. 09 AGM		5.550		11/15/31		3,138,480
	3,000,000	California State Ser. 05 NATL RE		4.750		03/01/35		2,658,660
	1,500,000	Chicago Illinois Ref. Ser. 10A AGM		5.000		01/01/27		1,483,860
	11,500,000	Chicago Illinois Ref. Ser. 10A AGM		5.000		01/01/28		11,244,930
	1,500,000	Chicago Illinois Ref. Ser. 10A AGM		5.000		01/01/29		1,453,710
	5,000,000	Corona-Norca California Unified School District (Election 2006) Ser. 09B AGC		5.375		02/01/34		5,007,000
	2,000,000	Corona-Norco California Unified School District (Election 2006) Ser. 09C AGM		5.500		08/01/39		2,005,060
	1,500,000	District of Columbia Ser. 08E BHAC		5.000		06/01/33		1,507,035
	1,000,000	El Monte California Union High School District (Election 2008) Ser. 09A AGC		5.500		06/01/34		1,012,960
	2,000,000	Lackawanna County Pennsylvania Ser. 10B AGM		5.000		09/01/35		1,928,960
	2,500,000	Los Angeles Unified School District (Election 2002) Ser. 07C AGM		5.000		07/01/32		2,423,650
	2,500,000	Philadelphia Pennsylvania Ser. 09B AGC		7.125		07/15/38		2,723,575
	3,000,000	Port St. Lucie Florida Utility Rev. Ref. System Ser. 09 AGC		5.000		09/01/35		2,925,570
	2,600,000	Puerto Rico Commonwealth Public Improvement Ref. Ser. 07A-4 AGM		5.250		07/01/30		2,575,014
	500,000	Puerto Rico Commonwealth Public Improvement Ref. Ser. 07A-4 AGM		5.000		07/01/31		470,275
	890,000	Reading Pennsylvania School District (State Aid Withholding) Ser. 08 AGM		5.000		03/01/35		892,100
	2,000,000	Riverside Community College District (Election 2004) Ser. 07C NATL RE		5.000		08/01/32		1,979,200
	2,500,000	San Jacinto Unified School District (Election 2006) Ser. 07 AGM		5.250		08/01/32		2,515,650

See Notes to Financial Statements.

34

Schedule of Investments (Continued)

PowerShares Insured National Municipal Bond Portfolio

April 30, 2011 (Unaudited)

Principal Amount			Interest Rate			Maturity Date	Value
		Municipal Bonds (Continued)
$	2,500,000	Victor Valley California Union High School District (Election 2008) Ser. 09A AGC		5.000	%	08/01/34	$	2,439,400
	2,535,000	Yosemite California Community College District (Election 2004) Ser. 08C AGM		5.000		08/01/32		2,508,636
								56,997,217
		Auto Parking Revenue—0.9%
	2,000,000	Miami Florida Special Obligation (Marlins Stadium Project) Ser. 10A AGM		5.250		07/01/35		1,936,040
	2,500,000	Miami Florida Special Obligation (Marlins Stadium Project) Ser. 10A AGM		5.250		07/01/39		2,393,600
								4,329,640
		College Revenue—3.2%
	3,000,000	California State University Rev. Systemwide Ser. 09A AGC		5.250		11/01/38		2,813,670
	3,000,000	District of Columbia Rev. (Catholic University of America) Ser. 07 NATL RE		5.000		10/01/29		3,013,560
	4,245,000	Georgia State Higher Education Facilities Auth. Rev. (USG Real Estate III) Ser. 10A AGC		5.000		06/15/38		4,015,982
	1,000,000	Lafayette Louisiana Public Trust Financing Auth. Rev. Ragin' Cajun Facilities (Housing & Parking Project) Ser. 10 AGM		5.500		10/01/41		997,010
	1,250,000	Massachusetts State Health & Educational Facilities Auth. Rev. (Massachusetts Institute of Technology) Ser. 09O		6.000		07/01/36		1,387,788
	1,000,000	New York State Dormitory Auth. Rev. (The New School) Ser. 10 AGM		5.500		07/01/43		1,012,110
	250,000	New York State Dormitory Auth. Rev. Non-Special Treatment Supported Debt (Fordham University) Ser. 08B AGC		5.000		07/01/38		250,430
	2,000,000	University of California Rev. Ser. 05C NATL RE		4.750		05/15/37		1,804,860
								15,295,410
		Electric Power Revenue—1.5%
	3,000,000	Guam Power Auth. Rev. Ser. 10A (Guam) AGM		5.000		10/01/37		2,730,150
	900,000	Kentucky State Municipal Power Agency System Rev. (Prairie State Project) Ser. 07A NATL RE		5.000		09/01/37		871,776
	2,500,000	Long Island Power Auth. New York Electric Systems Rev. General Ser. 08A BHAC		5.500		05/01/33		2,611,650
	1,000,000	Redding California Electric System Rev. COP Ser. 08A AGM		5.000		06/01/30		1,008,850
								7,222,426
		General Fund—0.1%
	500,000	California State Ref. Ser. 07 NATL RE		4.250		08/01/33		414,280
		Highway Tolls Revenue—9.1%
	7,500,000	Delaware River Port Auth. Pennsylvania & New Jersey Rev. Ser. 10D AGM		5.000		01/01/40		7,520,400
	500,000	Miami-Dade County Florida Expressway Auth. Toll System Rev. Ser. 06 AMBAC		5.000		07/01/37		463,020
	4,250,000	North Carolina Turnpike Auth. Triangle Expressway System Rev. Ser. 09A AGC		5.500		01/01/29		4,455,148
	4,000,000	North Carolina Turnpike Auth. Triangle Expressway System Rev. Ser. 09A AGC		5.750		01/01/39		4,091,560
	16,000,000	North Texas Thruway Auth. Rev. Ref. System (First Tier) Ser. 08K-1 AGC		5.750		01/01/38		16,028,000
	3,000,000	Pennsylvania State Turnpike Commission Rev. Subordinate Ser. 11A		6.500		12/01/36		3,184,140
	8,000,000	Pennsylvania State Turnpike Commission Rev. Subordinate Ser. 08C AGC		6.250		06/01/38		8,520,800
								44,263,068
		Hospital Revenue—17.4%
	500,000	Birmingham Alabama Special Care Facilities Financing Auth. Health Care Facilities Rev. (Children's Hospital) Ser. 09 AGC		6.000		06/01/34		528,105
	2,500,000	Birmingham Alabama Special Care Facilities Financing Auth. Health Care Facilities Rev. (Children's Hospital) Ser. 09 AGC		6.000		06/01/39		2,613,625

See Notes to Financial Statements.

35

Schedule of Investments (Continued)

PowerShares Insured National Municipal Bond Portfolio

April 30, 2011 (Unaudited)

Principal Amount			Interest Rate			Maturity Date	Value
		Municipal Bonds (Continued)
$	500,000	California Health Facilities Financing Auth. Rev. (Childrens Hospital Los Angeles) Ser. 10A AGM		5.250	%	07/01/38	$	443,465
	1,000,000	California Statewide Communities Development Auth. Rev. (Catholic Healthcare West) Ser. 07K AGC		5.500		07/01/41		981,150
	5,000,000	Christian County Kentucky Hospital Rev. (Hospital-Jennie Stuart Medical Center) Ser. 06 AGC		5.500		02/01/36		4,966,100
	2,500,000	Cobb County Georgia Kennestone Hospital Auth. Rev. Certificates Sub-Ser 05B AMBAC		5.500		04/01/37		2,505,100
	5,000,000	Colorado Health Facilities Auth. Rev. (Catholic Health) Ser. 06C-1 AGM		5.100		10/01/41		4,791,300
	300,000	Connecticut State Health & Educational Facility Auth. (Yale - New Haven Hospital) Ser. 06J-1 AMBAC		5.000		07/01/31		296,973
	1,570,000	District of Columbia Hospital Rev. (Children's Hospital Obligation Group) Ser. 08 AGC		5.250		07/15/38		1,487,308
	3,000,000	District of Columbia Rev. (Medlantic/Helix-Remarketed) Ser. 98C AGM		5.000		08/15/38		2,797,110
	3,000,000	Gwinnett County Georgia Hospital Auth. RAC (Gwinnett Hospital System) Ser. 07D AGM		5.500		07/01/41		2,815,560
	2,000,000	Halifax Hospital Medical Center (Florida Hospital) Rev. Ser. 06B-1 AGM		5.500		06/01/38		1,945,040
	3,800,000	Harris County Health Facilities Development Corp. Thermal Utility Rev. (TECO Project) Ser. 08 AGC		5.125		11/15/37		3,759,150
	1,000,000	Illinois Financing Auth. Rev. (Southern Illinois Healthcare) Ser. 05 AGM		5.250		03/01/30		998,740
	1,700,000	Indiana Health & Educational Facilities Finance Auth. Rev. (St. Francis) Ref. Ser. 06E AGM		5.250		05/15/41		1,606,874
	2,500,000	Iowa Finance Auth. Health Facilities Rev. (Remarketed) Ser. 08A AGC		5.625		08/15/37		2,525,300
	5,500,000	Jefferson Parish Louisiana Hospital District No. 1 Hospital Rev. (West Jefferson Medical Center) Ser. 98B AGM		5.250		01/01/28		5,598,505
	2,000,000	Johnston North Carolina Memorial Hospital Auth. Ser. 08 AGM		5.250		10/01/36		2,033,480
	485,000	Maryland State Health & Higher Educational Facilities Auth. Rev. Ser. 06A NATL RE		4.750		07/01/36		421,232
	8,270,000	Medford Oregon Hospital Facilities Auth. Rev. Ref. (Asanthe Health System) Ser. 10 AGM		5.500		08/15/28		8,743,209
	4,500,000	Medical Center Hospital Auth. Georgia RAC (Columbus Regional Healthcare) Ser. 10 AGM		5.000		08/01/41		3,940,155
	2,000,000	Medical Center Hospital Auth. Georgia RAC (Columbus Regional Healthcare) Ser. 10 AGM		5.000		08/01/45		1,739,560
	10,000,000	New Jersey Health Care Facilities Financing Auth. Rev. (Virtua Health) Ser. 09 AGC		5.500		07/01/38		10,031,800
	1,000,000	Ohio State Higher Educational Facilities Community Rev. (Summa Health System 2010 Project) Ser. 10 AGM		5.250		11/15/35		965,230
	2,500,000	Palm Beach County Florida Health Facilities Auth. Health Facilities Rev. (Bethesda Healthcare System, Inc. Project) Ser. 10A AGM		5.250		07/01/40		2,395,525
	1,000,000	Roanoke Virgina Industrial Development Auth. Hospital Rev. (Carilion Health System) Remarketed Ser. 05B AGM		5.000		07/01/38		939,220
	1,000,000	Scottsdale Arizona Industrial Development Auth. Hospital Rev. (Scottsdale Healthcare) Remarketed Ser. 06C AGM		5.000		09/01/35		956,550
	1,000,000	Scottsdale Arizona Industrial Development Auth. Hospital Rev. (Scottsdale Healthcare) Remarketed Ser. 06D AGM		5.000		09/01/39		940,850
	2,250,000	South Carolina Jobs-Economic Development Auth. Hospital Facilities Rev. (Ref-Palmetto Health-Remarketed) Ser. 08A AGM		5.000		08/01/35		2,094,480
	1,000,000	South Carolina Jobs-Economic Development Auth. Hospital Rev. Ref. & Improvement (Anmed Health) Ser. 09B AGC		5.500		02/01/38		980,690
	1,500,000	South Carolina Jobs-Economic Development Auth. Hospital Rev. Ref. (Palmetto Health) Ser. 11A AGM		6.500		08/01/39		1,521,075

See Notes to Financial Statements.

36

Schedule of Investments (Continued)

PowerShares Insured National Municipal Bond Portfolio

April 30, 2011 (Unaudited)

Principal Amount			Interest Rate			Maturity Date	Value
		Municipal Bonds (Continued)
$	1,000,000	South Fork Municipal Auth. Pennsylvania Hospital Rev. (Conemaugh Valley Memorial Hospital) Ser. 10B AGC		5.375	%	07/01/35	$	966,470
	450,000	University of California Regents Medical Center Pooled Rev. Ser. 07A NATL RE		4.750		05/15/31		414,252
	1,900,000	Waco Health Facilities Development Corporation (Hillcrest Health System Project) Ser. 06A NATL RE		5.000		08/01/31		1,786,836
	2,050,000	Washington State Health Care Facilities Auth. Rev. (Multicare Health System Remarketed) Ser. 07B AGM		5.500		08/15/38		2,035,486
	850,000	Washington State Health Care Facilities Auth. Rev. (Providence Health) Ser. 06E AGM		5.250		10/01/33		860,821
								84,426,326
		Hotel Occupancy Tax—0.4%
	2,000,000	Pittsburgh & Allegheny County Pennsylvania Sports & Exhibition Auth. Hotel Ref. Ser. 10 AGM		5.000		02/01/35		1,929,800
		Lease Revenue—8.0%
	3,000,000	Arizona State COP (Department of Administration) Ser. 10A AGM		5.250		10/01/26		3,088,170
	2,000,000	Arizona State COP (Department of Administration) Ser. 10A AGM		5.000		10/01/27		2,016,300
	2,000,000	Arizona State COP (Department of Administration) Ser. 10A AGM		5.250		10/01/28		2,050,440
	3,000,000	Carlsbad California University School District COP Ser. 09A AGC		5.000		10/01/34		2,841,480
	3,500,000	Escondido California Union High School District COP (Qualified School Construction Bonds) Ser. 10 AGM		5.000		06/01/33		3,355,380
	2,500,000	Escondido California Union High School District COP (Qualified School Construction Bonds) Ser. 10 AGM		5.000		06/01/37		2,324,575
	500,000	Kern County California COP (Capital Improvements Projects) Ser. 09A AGC		5.750		08/01/35		502,120
	7,000,000	Los Angeles California Municipal Improvement Corp. Lease Rev. (Real Property) Ser. 09B AGC		5.500		04/01/39		6,776,700
	2,150,000	Miami-Dade County Florida School Board COP Ser. 08B AGC		5.000		05/01/33		2,102,292
	500,000	Miami-Dade County Florida School Board COP Ser. 09A AGC		5.375		02/01/34		491,900
	3,000,000	Michigan State Building Auth. Rev. (Facilities Program) Ser. 09H AGM		5.000		10/15/26		3,057,870
	4,000,000	Richmond Joint Powers Financing Auth. Lease Rev. (Civic Center Project) Ser. 09 AGC		5.750		08/01/29		4,222,400
	5,000,000	State Public School Building Auth. Pennsylvania School Rev. (Harrisburg School District Project) Ser. 09A AGC		4.750		11/15/29		5,026,450
	1,000,000	Yuba California Levee Financing Auth. Rev. (Levee Financing Project) Ser. 08A AGC		5.000		09/01/38		949,960
								38,806,037
		Miscellaneous Revenue—5.5%
	7,500,000	Arizona State Lottery Rev. Ser. 10A AGM		5.000		07/01/28		7,536,150
	7,500,000	Arizona State Lottery Rev. Ser. 10A AGM		5.000		07/01/29		7,509,975
	2,500,000	Dallas Texas Civic Center Rev. Ref. & Improvement Ser. 09 AGC		5.250		08/15/34		2,545,150
	1,000,000	Hudson Yards Infrastructure Corp. New York Rev. Ser. 06A NATL RE		4.500		02/15/47		765,830
	2,025,000	Indianapolis Indiana Local Public Improvement Bond Bank (PILOT Infrastructure Project) Ser. 10F AGM		5.000		01/01/35		1,951,411
	1,000,000	Kentucky Economic Development Financial Auth. (Louisville Arena Project) Rev. Sub-Ser 08A-1 AGC		6.000		12/01/33		1,025,400
	3,000,000	Kentucky Economic Development Financial Auth. (Louisville Arena Project) Rev. Sub-Ser 08A-1 AGC		6.000		12/01/38		3,051,630
	1,000,000	New York City Industrial Development Agency Rev. Queens Baseball Stadium (Pilot) Ser. 09 AGC		6.500		01/01/46		1,034,580
	1,000,000	Newark New Jersey Housing Auth. Housing Rev. (South Ward Police Facility) Ser. 09 AGC		6.750		12/01/38		1,113,400
								26,533,526

See Notes to Financial Statements.

37

Schedule of Investments (Continued)

PowerShares Insured National Municipal Bond Portfolio

April 30, 2011 (Unaudited)

Principal Amount			Interest Rate			Maturity Date	Value
		Municipal Bonds (Continued)
		Port, Airport & Marina Revenue—9.9%
$	3,000,000	Birmingham Alabama Airport Auth. Airport Rev. Ser. 10 AGM		5.250	%	07/01/30	$	3,047,760
	1,500,000	Birmingham Alabama Airport Auth. Airport Rev. Ser. 10 AGM		5.500		07/01/40		1,502,010
	5,000,000	Chicago Illinois O'Hare International Airport Rev. (Ref-Third Indenture) Ser. 05A NATL RE		5.000		01/01/29		4,840,150
	2,000,000	Clark County Nevada Airport Rev. Subordinate Lien Ser. 09C AGM		5.000		07/01/26		2,017,200
	1,500,000	Manchester New Hampshire General Airport Rev. Ref. Remarketed Ser. 09A AGM		5.125		01/01/30		1,513,605
	7,000,000	Miami-Dade County Florida Aviation Rev. Ser. 10B AGM		5.000		10/01/35		6,695,500
	25,000,000	Philadelphia Pennsylvania Airport Rev. Ser. 10A AGM		5.000		06/15/35		24,249,000
	500,000	Port Authority of New York & New Jersey (Consolidated One Hundred Forty-Eighth) Ser. 07 AGM		5.000		08/15/37		501,565
	2,500,000	Port of Seattle Rev. (Intermediate Lien) Ref. Ser. 05A NATL RE		5.000		03/01/35		2,425,325
	1,500,000	Sacramento County California Airport System Senior Rev. Ser. 08A AGM		5.000		07/01/41		1,332,915
								48,125,030
		Recreational Revenue—2.0%
	5,000,000	Miami-Dade County Florida Professional Sports Franchise Facilities Tax Ser. 09C AGC		5.375		10/01/28		5,151,400
	4,000,000	New York City Industrial Development Agency Rev. Yankee Stadium (Pilot) Ser. 09 AGC		7.000		03/01/49		4,358,400
								9,509,800
		Sales Tax Revenue—4.3%
	5,240,000	Bi-State Development Agency of Missouri-Illinois Metropolitan District Mass Transit Sales Tax (MetroLink Cross County Extension) Ser. 09 AGC		5.000		10/01/35		5,289,885
	1,500,000	Central Puget Sound Regional Transportation Auth. Sales & Use Tax Rev. Ser. 07A AGM		5.000		11/01/34		1,541,805
	400,000	Dallas Area Rapid Transit (SR Lien) Ser. 07 AMBAC		5.000		12/01/32		407,776
	300,000	Illinois Regional Transportation Auth. Ser. 06A NATL RE		4.500		07/01/35		248,199
	3,000,000	Metropolitan Atlanta Rapid Transit Auth. Georgia Sales Tax Rev. Ref. (Third Indenture) Ser. 07B AGM		5.000		07/01/37		2,995,440
	3,000,000	Pittsburgh & Allegheny County Pennsylvania Sports & Exhibition Auth. Sales Ref. (Regional Asset District) Ser. 10 AGM		5.000		02/01/31		2,992,320
	2,500,000	Puerto Rico Sales Tax Financing Corp. (Sales Tax) Rev. First Subordinate Ser. 10A AGM		5.000		08/01/40		2,357,100
	1,000,000	Puerto Rico Sales Tax Financing Corp. (Sales Tax) Rev. First Subordinate Ser. 10C AGM		5.125		08/01/42		944,250
	1,815,000	Regional Transit Auth. - Illinois Ser. 00A NATL RE		6.500		07/01/30		1,993,977
	1,000,000	San Francisco California Bay Area Rapid Transit District Sales Tax Rev. Ref. Ser. 05A NATL RE		5.000		07/01/30		1,017,190
	1,000,000	Santa Clara Valley California Transportation Auth. Sales Tax Rev. (Ref-Measure A) Ser. 07A AMBAC		5.000		04/01/36		1,005,540
								20,793,482
		Sewer Revenue—3.0%
	2,500,000	Chicago Illinois Wastewater Transmission Rev. Ser. 08A BHAC		5.500		01/01/38		2,502,550
	2,250,000	Detroit Michigan Sewer Disposal Rev. (Senior Lien-Remarketed) Ser. 03B AGM		7.500		07/01/33		2,559,825
	2,500,000	Fresno California Sewer Rev. Ser. 08A AGC		5.000		09/01/37		2,397,425
	500,000	Los Angeles California Wastewater System Rev. Ref. Ser. 05A NATL RE		4.750		06/01/35		477,210
	1,400,000	Sacramento County California Sanitation District Financing Auth. Rev. (County Sanitation District 1) Ser. 05 NATL RE		5.000		08/01/35		1,406,790
	5,000,000	Sacramento County California Sanitation District Financing Auth. Rev. (Sacramento Regional County Sanitation) Ser. 06 NATL RE		5.000		12/01/36		5,017,600
								14,361,400

See Notes to Financial Statements.

38

Schedule of Investments (Continued)

PowerShares Insured National Municipal Bond Portfolio

April 30, 2011 (Unaudited)

Principal Amount			Interest Rate			Maturity Date	Value
		Municipal Bonds (Continued)
		Special Assessment—0.9%
$	4,000,000	Sacramento California Area Flood Control Agency Consolidated Capital Assessment District Ser. 08 BHAC		5.625	%	10/01/37	$	4,125,520
		Student Loan Revenue—0.8%
	3,670,000	Maine Educational Loan Auth. Student Loan Rev. Ser. 09A-3 Class A AGC		5.875		12/01/39		3,727,509
		Tax Increment Revenue—2.1%
	1,000,000	Park Creek Metropolitan District Colorado Rev. Ref. (Senior Limited Property Tax) Ser. 11A AGM		6.125		12/01/41		999,250
	3,930,000	Westminster California Redevelopment Agency Tax Allocation Rev. Subordinate (Commercial Redevelopment Project No. 1) Ser. 09 AGC		6.250		11/01/39		4,235,518
	5,000,000	Westminster California Redevelopment Agency Tax Allocation Rev. Subordinate (Commercial Redevelopment Project No. 1) Ser. 09 AGC		5.750		11/01/45		5,121,350
								10,356,118
		Transit Revenue—3.3%
	500,000	Metropolitan Transportation Auth. New York Rev. Ref. Insured Ser. 02A AGM		5.750		11/15/32		505,230
	400,000	New Jersey State Transportation Trust Fund Auth. (Transit System) Ser. 07A AMBAC		5.000		12/15/32		389,160
	15,000,000	New Jersey State Transportation Trust Fund Auth. (Transit System) Ser. 08A AGC		5.500		12/15/38		15,326,250
								16,220,640
		Water Revenue—12.7%
	9,500,000	Atlanta Georgia Water & Wastewater Rev. Ser. 09-B AGM		5.250		11/01/34		9,474,540
	1,000,000	Birmingham Alabama Waterworks & Sewer Board Rev. Ser. 09A AGC		5.250		01/01/39		1,013,770
	2,250,000	Chicago Illinois Water Rev. Ref. (Second Lien) AGM		5.250		11/01/33		2,232,382
	2,000,000	Detroit Michigan Water Supply System Rev. (Second Lien-Remarketed) Ser. 06B AGM		6.250		07/01/36		2,068,160
	2,000,000	Detroit Michigan Water Supply System Rev. (Second Lien-Remarketed) Ser. 06B AGM		7.000		07/01/36		2,182,540
	1,500,000	Detroit Water Supply System Rev. (Second Lien) Ref. Ser. 06C AGM		5.000		07/01/29		1,331,685
	1,000,000	East Bay California Municipal Utility District Water System Rev. Subordinated Ser. 05A NATL RE		5.000		06/01/35		1,003,980
	3,570,000	Houston Texas Utility System Rev. Ref. (Combined-First Lien) Ser. 09A AGC		6.000		11/15/35		3,884,874
	4,500,000	Indianapolis Industry Local Public Improvement (Waterworks Project) Ser. 09A AGC		5.500		01/01/38		4,584,060
	1,000,000	Miami-Dade County Florida Water & Sewer System Rev. Ser. 10 AGM		5.000		10/01/27		1,064,810
	20,000,000	Miami-Dade County Florida Water & Sewer System Rev. Ser. 10 AGM		5.000		10/01/29		20,915,600
	400,000	New York City Municipal Water Finance Auth. Water & Sewer System Rev. (Second General Resolution) Ser. 11GG		5.000		06/15/43		398,076
	5,000,000	North Fort Bend Water Auth. Texas Water System Rev. Ser. 09 AGC		5.250		12/15/34		5,128,550
	2,000,000	North Sumter County Utility Ser. 10 AGM		5.375		10/01/40		1,851,480
	875,000	Philadelphia Pennsylvania Water & Wastewater Rev. Ser. 10C AGM		5.000		08/01/40		853,913
	2,790,000	Riverside California Water Rev. Ser. 08B AGM		5.000		10/01/38		2,789,860
	500,000	San Francisco City & County Public Utilities Commission Water Rev. Ser. 06A AGM		4.500		11/01/31		464,910
	500,000	San Luis Obispo County California Financing Auth. Rev. (Nacimiento Water Project) Ser. 07A NATL RE		5.000		09/01/38		458,240
								61,701,430
		Total Municipal Bonds (Cost $470,725,535)						469,138,659

See Notes to Financial Statements.

39

Schedule of Investments (Continued)

PowerShares Insured National Municipal Bond Portfolio

April 30, 2011 (Unaudited)

Principal Amount			Interest Rate			Maturity Date	Value
		Municipal Notes—1.0%
		Miscellaneous Revenue—1.0%
$	5,000,000	Texas State Tax and Rev. Anticipation Notes Ser. 10 (Cost $5,028,636)		2.000	%	08/31/11	$	5,028,750
		Total Investments (Cost $475,754,171)(a)—97.9%						474,167,409
		Other assets less liabilities—2.1%						10,275,875
		Net Assets—100.0%					$	484,443,284

Investment Abbreviations:
Auth.  – Authority
COP  – Certificate of Participation
RAC  – Revenue Anticipation Certificates
Ref.  – Refunding Bonds
Rev.  – Revenue
Ser.    – Series

Glossary of Terms:
AGC  – Assured Guaranty Corp.
AGM  – Assured Guaranty Municipal Corp.
AMBAC  – American Municipal Bond Assurance Corp.*
BHAC  – Berkshire Hathaway Assurance Corp.
NATL RE  – National Public Finance Guarantee Corp.

Notes to Schedule of Investments:

(a)  This table, as of April 30, 2011, provides a listing of those entities that have either guaranteed, backed or otherwise enhanced the credit quality of more than 5% of the value of securities held in the portfolio. In instances where the entity has guaranteed, backed or otherwise enhanced the credit quality of a security, it is not primarily responsible for the borrower's obligations but may be called upon to satisfy the borrower's obligations.

Entities	Percentage of Total Investments
Assured Guaranty Municipal Corp.		50.2	%
Assured Guaranty Corp.		37.4
National Public Finance Guarantee Corp.		7.0

*  Filed for bankruptcy on November 8, 2010.

See Notes to Financial Statements.

40

Portfolio Composition

PowerShares Insured New York Municipal Bond Portfolio

Industry Breakdown (% of the Fund's Net Assets) as of April 30, 2011 (Unaudited)

Electric Power Revenue	13.7
Miscellaneous Revenue	13.2
Highway Tolls Revenue	10.7
Sales Tax Revenue	8.5
Ad Valorem Property Tax	7.6
Water Revenue	7.4
Transit Revenue	6.8
College Revenue	6.6
Recreational Revenue	4.4
Lease Revenue	4.2
Hospital Revenue	4.1
Port, Airport & Marina Revenue	4.0
Hotel Occupancy Tax	3.7
Income Tax Revenue	2.6
Other assets less liabilities	2.5

Schedule of Investments

PowerShares Insured New York Municipal Bond Portfolio

April 30, 2011 (Unaudited)

Principal Amount			Interest Rate			Maturity Date	Value
		Municipal Bonds—93.5%
		Ad Valorem Property Tax—3.6%
$	1,000,000	Puerto Rico Commonwealth Public Improvement Ref. Ser. 07A-4 AGM		5.250	%	07/01/30	$	990,390
	400,000	Puerto Rico Commonwealth Public Improvement Ref. Ser. 07A-4 AGM		5.000		07/01/31		376,220
								1,366,610
		College Revenue—6.6%
	1,500,000	New York State Dormitory Auth. Rev. (The New School) Ser. 10 AGM		5.500		07/01/43		1,518,165
	500,000	New York State Dormitory Auth. Rev. Non-Special Treatment Supported Debt (Fordham University) Ser. 08B AGC		5.000		07/01/38		500,860
	500,000	New York State Dormitory Auth. Rev. Non-Special Treatment Supported Debt Mount Sinai School (Medical New York) Ser. 07 NATL RE		5.000		07/01/35		480,980
								2,500,005
		Electric Power Revenue—13.7%
	500,000	Long Island Power Auth. Electric System Rev. Ser. 04A AMBAC		5.000		09/01/34		499,965
	4,500,000	Long Island Power Auth. New York Electric Systems Rev. General Ser. 08A BHAC		5.500		05/01/33		4,700,970
								5,200,935
		Highway Tolls Revenue—10.7%
	1,000,000	New York State Thruway Auth. General Rev. Ser. 05G AGM		5.000		01/01/30		1,008,140
	1,000,000	New York State Thruway Auth. General Rev. Ser. 05G AGM		5.000		01/01/32		1,002,540
	600,000	New York State Thruway Auth. General Rev. Ser. 07H NATL RE		5.000		01/01/37		575,682
	400,000	Puerto Rico Commonwealth Highway & Transportation Auth. Rev. Ref. Ser. 07N FGIC		5.250		07/01/39		351,580
	1,100,000	Triborough Bridge & Tunnel Auth. Rev. Ref. Ser. 02 NATL RE		5.000		11/15/32		1,103,509
								4,041,451

See Notes to Financial Statements.

41

Schedule of Investments (Continued)

PowerShares Insured New York Municipal Bond Portfolio

April 30, 2011 (Unaudited)

Principal Amount			Interest Rate			Maturity Date	Value
		Municipal Bonds (Continued)
		Hospital Revenue—4.1%
$	600,000	New York State Dormitory Auth. Rev. (Mental Health Services Facilities Improvement) Ser. 05B AMBAC		5.000	%	02/15/30	$	609,654
	1,000,000	New York State Dormitory Auth. Rev. Special Treatment Supported Debt (Mental Health Services Facilities Improvement) Ser. 08A AGM		5.000		02/15/38		964,190
								1,573,844
		Hotel Occupancy Tax—3.7%
	1,500,000	New York Convention Center Development Corp. Rev. (Hotel Unit Fee Secured) Ser. 05 AMBAC		5.000		11/15/44		1,390,020
		Income Tax Revenue—2.6%
	500,000	New York State Urban Development Corp. Rev. (State Personal Income Tax) Ser. 07C NATL RE		4.500		03/15/37		471,525
	500,000	New York State Urban Development Corp. Rev. (State Personal Income Tax) Ser. 09B-1		5.000		03/15/36		504,175
								975,700
		Lease Revenue—4.2%
	1,000,000	Puerto Rico Public Buildings Auth. Rev. Ref. (Government Facilities-Remarketed) Ser. 04K AGM		5.250		07/01/27		1,011,170
	700,000	Rensselaer City School District Ser. 06 XLCA		5.000		06/01/36		580,664
								1,591,834
		Miscellaneous Revenue—13.2%
	500,000	Erie County New York Industrial Development Agency School Facility Rev. (City School District of the city of Buffalo Project) Ser. 03A AGM		5.750		05/01/28		544,820
	1,100,000	Hudson Yards Infrastructure Corp. New York Rev. Ser. 06A NATL RE		4.500		02/15/47		842,413
	2,000,000	New York City Industrial Development Agency Rev. Queens Baseball Stadium (Pilot) Ser. 09 AGC		6.500		01/01/46		2,069,160
	1,000,000	New York City Transitional Finance Auth. Building Aid Rev. (Fiscal 2007) Ser. 06S-1 NATL RE		5.000		07/15/36		997,080
	600,000	New York City Transitional Finance Auth. Building Aid Rev. Ser. 07S-2 NATL RE		4.250		01/15/34		542,436
								4,995,909
		Port, Airport & Marina Revenue—4.0%
	1,000,000	Port Auth. of New York & New Jersey (Consolidated-One Hundred Forty-Eighth) Ser. 07 AGM		5.000		08/15/33		1,014,990
	500,000	Port Authority of New York & New Jersey (Consolidated One Hundred Forty-Eighth) Ser. 07 AGM		5.000		08/15/37		501,565
								1,516,555
		Recreational Revenue—4.4%
	1,000,000	New York City Industrial Development Agency Rev. Yankee Stadium (Pilot) Ser. 09 AGC		7.000		03/01/49		1,089,600
	600,000	New York City Trust for Cultural Resources Rev. (American Museum of National History) Ser. 04A NATL RE		5.000		07/01/44		597,072
								1,686,672
		Sales Tax Revenue—8.5%
	3,190,000	Sales Tax Asset Receivables Corp. Ser. 04A AMBAC		5.000		10/15/32		3,237,276
		Transit Revenue—6.8%
	2,005,000	Metropolitan Transportation Auth. New York Rev. Ref. Insured Ser. 02A AGM		5.750		11/15/32		2,025,972
	600,000	Metropolitan Transportation Auth. Rev. Ser. 07A NATL RE		4.750		11/15/37		545,688
								2,571,660

See Notes to Financial Statements.

42

Schedule of Investments (Continued)

PowerShares Insured New York Municipal Bond Portfolio

April 30, 2011 (Unaudited)

Principal Amount			Interest Rate			Maturity Date	Value
		Municipal Bonds (Continued)
		Water Revenue—7.4%
$	1,100,000	Nassau County New York Sewer & Storm Water Finance Auth. System Rev. Ser. 08A BHAC		5.375	%	11/01/28	$	1,187,472
	600,000	New York City Municipal Finance Auth. Water & Sewer System Rev. Ser. 07A AGM		4.250		06/15/39		522,480
	1,000,000	New York City Municipal Water Finance Auth. Water & Sewer Rev. (2nd Generation Resolution) Ser. 08DD		6.000		06/15/40		1,082,800
								2,792,752
		Total Municipal Bonds (Cost $35,446,772)						35,441,223
		Municipal Notes—4.0%
		Ad Valorem Property Tax—4.0%
	1,500,000	Oyster Bay New York BAN Ser. 11 (Cost $1,526,827)		2.500		03/09/12		1,526,745
		Total Investments (Cost $36,973,599)(a)—97.5%						36,967,968
		Other assets less liabilities—2.5%						962,070
		Net Assets—100.0%					$	37,930,038

Investment Abbreviations:
Auth.  – Authority
BAN  – Bond Anticipation Notes
Ref.  – Refunding Bonds
Rev.  – Revenue
Ser.    – Series

Glossary of Terms:
AGC  – Assured Guaranty Corp.
AGM  – Assured Guaranty Municipal Corp.
AMBAC  – American Municipal Bond Assurance Corp.*
BHAC  – Berkshire Hathaway Assurance Corp.
FGIC  – Financial Guaranty Insurance Co.
NATL RE  – National Public Finance Guarantee Corp.
XLCA  – XL Capital Assurance, Inc.

Notes to Schedule of Investments:

(a)  This table, as of April 30, 2011, provides a listing of those entities that have either guaranteed, backed or otherwise enhanced the credit quality of more than 5% of the value of securities held in the portfolio. In instances where the entity has guaranteed, backed or otherwise enhanced the credit quality of a security, it is not primarily responsible for the borrower's obligations but may be called upon to satisfy the borrower's obligations.

Entities	Percentage of Total Investments
Assured Guaranty Municipal Corp.		31.1	%
National Public Finance Guarantee Corp.		16.7
Berkshire Hathaway Assurance Corp.		15.9
American Municipal Bond Assurance Corp.*		15.5
Assured Guaranty Corp.		9.9

*  Filed for bankruptcy on November 8, 2010.

See Notes to Financial Statements.

43

Portfolio Composition

PowerShares International Corporate Bond Portfolio

Industry Breakdown (% of the Fund's Net Assets) as of April 30, 2011 (Unaudited)

Banks	39.7
Electric	13.0
Telecommunications	12.6
Pharmaceuticals	3.6
Oil & Gas	3.3
Gas	3.1
Sovereign	2.7
Commercial Services	2.3
Food	1.7
Insurance	1.7
Agriculture	1.6
Water	1.6
Auto Manufacturers	1.5
Engineering & Construction	1.4
Building Materials	1.1
Transportation	1.1
Diversified Financial Services	0.9
Distribution/Wholesale	0.8
Iron/Steel	0.7
Media	0.5
Beverages	0.4
Mining	0.4
Aerospace/Defense	0.4
Savings & Loans	0.4
Chemicals	0.3
Holding Companies-Diversified	0.3
Miscellaneous Manufacturing	0.3
Country Funds-Closed-end	0.2
Other assets less liabilities	2.4

Schedule of Investments

PowerShares International Corporate Bond Portfolio

April 30, 2011 (Unaudited)

Principal Amount			Interest Rate			Maturity Date	Value
		Corporate Bonds(a)—97.6%
		Australia—5.4%
AUD	250,000	Australia & New Zealand Banking Group Ltd., Series TD		8.500	%	04/22/13	$	287,037
EUR	150,000	Commonwealth Bank of Australia, Series E, MTN		4.375		02/25/20		222,118
AUD	200,000	National Australia Bank Ltd.		8.250		05/20/13		228,851
AUD	650,000	National Australia Bank Ltd., Series DIP		6.750		09/16/14		721,215
EUR	150,000	National Australia Bank Ltd., Series G, MTN		4.000		07/13/20		215,987
EUR	100,000	Telstra Corp. Ltd., Series E, MTN		4.750		03/21/17		156,092
EUR	150,000	Westpac Banking Corp., Series E, MTN		4.250		09/22/16		225,516
AUD	300,000	Westpac Banking Corp., MTN		7.250		11/18/16		334,794
GBP	150,000	Westpac Banking Corp., Series E, MTN		5.000		10/21/19		256,384
								2,647,994

See Notes to Financial Statements.

44

Schedule of Investments (Continued)

PowerShares International Corporate Bond Portfolio

April 30, 2011 (Unaudited)

Principal Amount			Interest Rate			Maturity Date	Value
		Corporate Bonds(a) (Continued)
		Austria—0.5%
EUR	150,000	Hypo Alpe-Adria-Bank International AG, Series E, MTN		4.375	%	01/24/17	$	220,093
		Belgium—0.3%
EUR	100,000	Fortis Bank SA/NV, Series E, MTN		5.757		10/04/17		156,473
		Canada—9.8%
CAD	125,000	Bank of Montreal, Series DPNT		3.930		04/27/15		136,490
CAD	125,000	Bank of Montreal, Series DPNT		3.490		06/10/16		132,430
CAD	150,000	Bank of Montreal, Series DPNT		6.020		05/02/18		179,172
CAD	125,000	Bank of Nova Scotia, Series DPNT		3.350		11/18/14		133,920
CAD	1,000,000	Bank of Nova Scotia, Series DPNT		3.340		03/25/15		1,067,829
CAD	100,000	Bell Canada, MTN		4.850		06/30/14		111,441
CAD	225,000	Bell Canada		4.400		03/16/18		239,159
CAD	200,000	Canadian Imperial Bank of Commerce/Canada, Series DPNT, MTN		3.100		03/02/15		211,863
CAD	500,000	Canadian Imperial Bank of Commerce/Canada, Series DPNT, MTN		3.950		07/14/17		535,822
CAD	100,000	CDP Financial, Inc.		4.600		07/15/20		109,658
CAD	250,000	Manulife Financial Corp., MTN		4.896		06/02/14		276,158
CAD	275,000	Rogers Communications, Inc.		5.340		03/22/21		292,981
CAD	250,000	Royal Bank of Canada, Series DPNT		3.360		01/11/16		264,510
CAD	250,000	Royal Bank of Canada, Series DPNT		3.660		01/25/17		265,034
CAD	200,000	Royal Bank of Canada		3.770		03/30/18		211,005
CAD	100,000	Shaw Communications, Inc.		5.650		10/01/19		108,838
CAD	150,000	Shaw Communications, Inc.		6.750		11/09/39		153,445
CAD	200,000	TELUS Corp., Series CH		5.050		07/23/20		212,071
GBP	100,000	Xstrata Canada Financial Corp., Series E, MTN		7.375		05/27/20		194,233
								4,836,059
		Cayman Islands—0.7%
GBP	200,000	Thames Water Utilities Cayman Finance Ltd., Series E, MTN		5.500		02/11/41		342,764
		Denmark—0.4%
EUR	150,000	Carlsberg Breweries A/S, Series E, MTN		3.375		10/13/17		212,922
		France—12.9%
EUR	200,000	Banque Federative du Credit Mutuel, Series E, MTN		4.000		10/22/20		272,152
EUR	100,000	BNP Paribas, Series E, MTN		5.431		09/07/17		156,105
EUR	100,000	Bouygues SA		6.125		07/03/15		164,511
EUR	100,000	Bouygues SA		4.250		07/22/20		147,713
EUR	100,000	Carrefour SA, Series E, MTN		3.875		04/25/21		142,183
EUR	150,000	Casino Guichard Perrachon SA		4.481		11/12/18		224,409
EUR	200,000	Credit Agricole SA, Series E, MTN		5.971		02/01/18		316,073
EUR	100,000	Dexia Credit Local SA, Series E, MTN		5.375		07/21/14		152,557
EUR	150,000	Electricite de France SA, Series E, MTN		6.250		01/25/21		259,380
EUR	100,000	Electricite de France SA, Series E, MTN		4.625		09/11/24		148,985
GBP	500,000	Electricite de France SA, Series E, MTN		6.125		06/02/34		928,981
EUR	75,000	France Telecom SA, Series E, MTN		4.750		02/21/17		118,012
EUR	900,000	France Telecom SA, Series E, MTN		3.875		04/09/20		1,313,540
EUR	100,000	GDF Suez, Series E, MTN		6.875		01/24/19		177,403
EUR	400,000	GDF Suez, Series E, MTN		3.500		10/18/22		554,207
EUR	200,000	Lafarge SA, Series E, MTN		5.375		11/29/18		297,021
EUR	100,000	LVMH Moet Hennessy Louis Vuitton SA, Series E, MTN		4.375		05/12/14		154,004
EUR	50,000	Societe Generale, Series E, MTN		3.750		08/21/14		75,201

See Notes to Financial Statements.

45

Schedule of Investments (Continued)

PowerShares International Corporate Bond Portfolio

April 30, 2011 (Unaudited)

Principal Amount			Interest Rate			Maturity Date	Value
		Corporate Bonds(a) (Continued)
EUR	150,000	Societe Generale, Series E, MTN		3.125	%	09/21/17	$	211,215
EUR	100,000	Societe Generale, Series E, MTN		4.750		03/02/21		148,348
EUR	100,000	Veolia Environnement, Series E, MTN		4.375		01/16/17		152,784
GBP	150,000	Veolia Environnement, Series E, MTN		6.125		10/29/37		275,201
								6,389,985
		Germany—2.0%
EUR	150,000	Commerzbank AG, Series E, MTN		3.875		03/22/17		216,299
EUR	150,000	Commerzbank AG, Series E, MTN		6.375		03/22/19		218,046
EUR	50,000	Deutsche Bank AG, Series E, MTN		5.125		08/31/17		79,957
EUR	150,000	Deutsche Bank AG, Series E, MTN		5.000		06/24/20		221,187
AUD	100,000	Landwirtschaftliche Rentenbank, MTN		6.500		04/12/17		111,006
EUR	100,000	Merck Financial Services GmbH, Series E, MTN		4.500		03/24/20		151,907
								998,402
		Italy—8.3%
EUR	100,000	Atlantia SpA, Series E, MTN		5.000		06/09/14		155,361
EUR	700,000	Atlantia SpA, Series E, MTN		3.375		09/18/17		991,460
EUR	100,000	Banco Popolare SC, Series E, MTN		4.125		10/22/14		148,749
GBP	200,000	Enel SpA, Series E, MTN		6.250		06/20/19		363,013
EUR	400,000	ENI SpA		4.125		09/16/19		593,552
EUR	100,000	Intesa Sanpaolo SpA, Series E, MTN		5.375		12/19/13		155,097
EUR	200,000	Intesa Sanpaolo SpA, Series E, MTN		3.375		01/19/15		292,193
EUR	200,000	Intesa Sanpaolo SpA, Series G, MTN		4.000		11/08/18		283,342
GBP	200,000	Telecom Italia SpA, Series E, MTN		7.375		12/15/17		374,396
EUR	200,000	Telecom Italia SpA, Series E, MTN		5.250		02/10/22		292,559
EUR	100,000	Terna Rete Elettrica Nazionale SpA, Series E, MTN		4.750		03/15/21		149,463
EUR	100,000	UniCredit SpA, Series E, MTN		5.250		01/14/14		153,762
EUR	100,000	UniCredit SpA, Series E, MTN		5.750		09/26/17		151,536
								4,104,483
		Japan—4.2%
JPY	50,000,000	Development Bank of Japan		1.650		06/20/12		625,411
JPY	10,000,000	Development Bank of Japan		1.750		03/17/17		130,293
JPY	50,000,000	Development Bank of Japan		1.050		06/20/23		586,100
JPY	20,000,000	East Japan Railway Co., Series 3		3.950		02/25/16		284,829
JPY	40,000,000	Tokyo Electric Power Co., Inc. (The), Series 517		1.355		06/15/15		463,279
								2,089,912
		Jersey Islands—0.7%
GBP	200,000	BAA Funding Ltd., Series E, MTN		6.750		12/03/26		369,792
		Luxembourg—3.1%
EUR	200,000	ArcelorMittal		9.375		06/03/16		361,752
EUR	250,000	Enel Finance International SA, Series E, MTN		5.000		09/14/22		382,259
EUR	250,000	Glencore Finance Europe SA, Series E, MTN		5.250		03/22/17		383,066
CHF	225,000	Nestle Finance International Ltd., Series E, MTN		2.000		08/05/13		266,308
EUR	100,000	Novartis Finance SA, Series E, MTN		4.250		06/15/16		155,109
								1,548,494
		Netherlands—14.6%
EUR	200,000	ABN Amro Bank NV, Series E, MTN		3.625		10/06/17		282,881
EUR	250,000	Allianz Finance II BV, Series E, MTN		4.750		07/22/19		388,989
EUR	150,000	Deutsche Bahn Finance BV, MTN		4.875		03/12/19		240,247
EUR	500,000	Deutsche Telekom International Finance BV, Series E, MTN		4.250		07/13/22		727,414

See Notes to Financial Statements.

46

Schedule of Investments (Continued)

PowerShares International Corporate Bond Portfolio

April 30, 2011 (Unaudited)

Principal Amount			Interest Rate			Maturity Date	Value
		Corporate Bonds(a) (Continued)
EUR	1,100,000	E.ON International Finance BV, Series E, MTN		5.750	%	05/07/20	$	1,856,113
EUR	250,000	EDP Finance BV, Series E, MTN		3.250		03/16/15		343,108
EUR	100,000	Fortis Bank Nederland NV, Series E, MTN		4.000		02/03/15		149,366
EUR	100,000	ING Bank NV		3.375		03/03/15		147,351
EUR	100,000	ING Groep NV, Series E, MTN		4.750		05/31/17		151,299
EUR	100,000	Koninklijke KPN NV, Series G, MTN		4.000		06/22/15		152,032
EUR	100,000	Rabobank Nederland, Series E, MTN		3.000		02/16/15		147,375
EUR	350,000	Rabobank Nederland, Series E, MTN		3.375		04/21/17		504,530
EUR	100,000	Rabobank Nederland, Series E, MTN		4.750		01/15/18		154,871
EUR	100,000	Rabobank Nederland, Series G, MTN		4.125		01/14/20		146,439
EUR	300,000	Rabobank Nederland, Series G, MTN		3.750		11/09/20		404,664
EUR	100,000	Repsol International Finance BV, Series E, MTN		6.500		03/27/14		161,364
EUR	100,000	RWE Finance BV, Series E, MTN		6.625		01/31/19		174,525
EUR	500,000	Shell International Finance BV, Series E, MTN		4.375		05/14/18		778,139
EUR	90,000	Siemens Financieringsmaatschappij NV, Series E, MTN		5.125		02/20/17		144,399
EUR	100,000	Volkswagen International Finance NV, Series E, MTN		7.000		02/09/16		171,626
								7,226,732
		Norway—0.4%
EUR	75,000	DnB NOR Bank ASA, Series E, MTN		3.875		06/29/20		107,402
GBP	50,000	Statoil ASA, Series E, MTN		6.875		03/11/31		103,332
								210,734
		Spain—5.7%
EUR	100,000	BBVA Senior Finance SAU, Series G, MTN		3.250		04/23/15		141,256
EUR	150,000	BBVA Senior Finance SAU, Series G, MTN		3.875		08/06/15		215,987
EUR	100,000	Gas Natural Capital Markets SA, Series E, MTN		5.250		07/09/14		153,959
GBP	150,000	Iberdrola Finanzas SAU, Series E, MTN		7.375		01/29/24		285,839
EUR	100,000	Santander International Debt SA Unipersonal, MTN		3.500		08/12/14		144,901
EUR	100,000	Santander International Debt SA Unipersonal, Series E, MTN		4.125		10/04/17		142,730
EUR	100,000	Telefonica Emisiones SAU, Series E, MTN		3.406		03/24/15		146,649
EUR	1,000,000	Telefonica Emisiones SAU, Series G, MTN		3.661		09/18/17		1,426,125
EUR	100,000	Telefonica Emisiones SAU, Series E, MTN		4.693		11/11/19		148,164
								2,805,610
		Sweden—2.7%
EUR	100,000	Akzo Nobel Sweden Finance AB		7.750		01/31/14		165,775
EUR	200,000	Nordea Bank AB, Series E, MTN		2.750		08/11/15		286,233
EUR	100,000	Nordea Bank AB, Series E, MTN		4.500		03/26/20		142,289
EUR	200,000	Vattenfall AB, Series E, MTN		6.250		03/17/21		348,484
SEK	1,000,000	Volvo Treasury AB, Series E, MTN		4.500		04/04/14		165,003
EUR	150,000	Volvo Treasury AB, Series E, MTN		5.000		05/31/17		231,829
								1,339,613
		Switzerland—3.8%
EUR	150,000	Credit Suisse/Guernsey, Series E, MTN		2.875		09/24/15		216,108
EUR	125,000	Credit Suisse/London, Series E, MTN		3.875		01/25/17		184,150
CHF	200,000	Holcim Ltd., Series E, MTN		4.000		12/09/13		243,658
CHF	600,000	Roche Kapitalmarkt AG		4.500		03/23/17		777,283
CHF	100,000	Swisscom AG		3.250		09/14/18		120,207
EUR	225,000	UBS AG/London, Series E, MTN		3.500		07/15/15		333,191
								1,874,597

See Notes to Financial Statements.

47

Schedule of Investments (Continued)

PowerShares International Corporate Bond Portfolio

April 30, 2011 (Unaudited)

Principal Amount			Interest Rate			Maturity Date	Value
		Corporate Bonds(a) (Continued)
		United Kingdom—21.7%
GBP	700,000	Barclays Bank PLC, Series E, MTN		10.000	%	05/21/21	$	1,467,427
GBP	250,000	Barclays Bank PLC, Series E, MTN		5.750		08/17/21		436,426
GBP	200,000	BAT International Finance PLC, Series E, MTN		7.250		03/12/24		394,825
GBP	200,000	British Telecommunications PLC, MTN		8.750		12/07/16		401,721
GBP	750,000	Centrica PLC, Series E, MTN		6.375		03/10/22		1,392,827
GBP	500,000	GlaxoSmithKline Capital PLC, Series E, MTN		5.250		12/19/33		853,104
EUR	100,000	HSBC Bank PLC, Series E, MTN		3.750		11/30/16		148,573
GBP	850,000	HSBC Holdings PLC, Series E, MTN		6.500		05/20/24		1,594,210
GBP	200,000	HSBC Holdings PLC, Series E, MTN		5.750		12/20/27		328,358
GBP	100,000	Imperial Tobacco Finance PLC, Series E, MTN		7.750		06/24/19		198,151
GBP	100,000	Imperial Tobacco Finance PLC, Series E, MTN		9.000		02/17/22		217,097
GBP	175,000	Lloyds TSB Bank PLC, Series E, MTN		6.375		04/15/14		315,675
GBP	350,000	Lloyds TSB Bank PLC, Series E, MTN		7.625		04/22/25		600,023
GBP	100,000	Nationwide Building Society, Series E, MTN		5.625		09/09/19		173,071
GBP	100,000	Rolls-Royce PLC		6.750		04/30/19		193,013
GBP	200,000	Royal Bank of Scotland PLC (The), Series E, MTN		6.375		04/29/14		358,987
GBP	400,000	Royal Bank of Scotland PLC (The), Series E, MTN		6.000		05/17/17		704,668
GBP	400,000	Royal Bank of Scotland PLC (The), Series E, MTN		6.875		05/17/25		705,878
GBP	125,000	Tesco PLC, Series E, MTN		6.125		02/24/22		229,320
								10,713,354
		United States—0.4%
EUR	100,000	BMW US Capital LLC, Series E, MTN		5.000		05/28/15		158,301
JPY	5,000,000	General Electric Capital Corp., Series E, MTN		1.000		03/21/12		61,764
								220,065
		Total Investments (Cost $45,576,688)—97.6%						48,308,078
		Other assets less liabilities—2.4%						1,166,992
		Net Assets—100.0%					$	49,475,070

Investment Abbreviations:
DIP  – Debt Issuance Program
DPNT  – Deposit Notes
MTN  – Medium-Term Notes
TD    – Time Deposits

Currency Legend
AUD  – Australian Dollar
CAD  – Canadian Dollar
CHF  – Swiss Franc
EUR  – Euro
GBP  – British Pound
JPY  – Japanese Yen
SEK  – Swedish Krona

Notes to Schedule of Investments:

(a)  Foreign denominated security. Principal amount denominated in currency indicated.

See Notes to Financial Statements.

48

Portfolio Composition

PowerShares Preferred Portfolio

Industry Breakdown (% of the Fund's Net Assets) as of April 30, 2011 (Unaudited)

Banks	50.5
Diversified Financial Services	23.5
Insurance	10.0
REITs	6.6
Electric	5.3
Media	2.8
Telecommunications	1.5
Chemicals	0.1
Money Market Fund	1.6
Liabilities in excess of other assets	(1.9	)

Schedule of Investments

PowerShares Preferred Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Preferred Stocks and Other Equity Interests—100.3%
		Banks—50.5%
	379,064	BAC Capital Trust X, 6.25%, Series B	$	8,889,051
	1,836,306	Bank of America Corp., 8.20%		47,743,956
	1,818,215	Bank of America Corp., 8.63%, Series MER		48,946,348
	2,461,099	Barclays Bank PLC, 8.13%, Series 5 (United Kingdom)		65,465,233
	611,834	BB&T Capital Trust VI, 9.60%		17,100,760
	246,079	BNY Capital V, 5.95%, Series F		6,183,965
	1,107,462	Deutsche Bank Capital Funding Trust IX, 6.63%		27,376,461
	279,093	Deutsche Bank Contingent Capital Trust III, 7.60%		7,457,365
	1,434,488	Deutsche Bank Contingent Capital Trust V, 8.05%		39,018,074
	812,610	Fifth Third Capital Trust VI, 7.25%		20,778,438
	595,593	Goldman Sachs Group, Inc. (The), 6.13%		14,669,455
	372,678	Goldman Sachs Group, Inc. (The), 6.20%, Series B		9,309,496
	1,794,263	HSBC Holdings PLC, 8.00%, Series 2 (United Kingdom)		49,216,634
	1,922,607	HSBC Holdings PLC, 8.13% (United Kingdom)		52,717,884
	1,980,249	JPMorgan Chase & Co., 8.63%, Series J		54,734,082
	1,329,305	JPMorgan Chase Capital X, 7.00%		34,003,622
	468,077	KeyCorp Capital IX, 6.75%		11,800,221
	380,536	Lloyds Banking Group PLC, 7.75% (United Kingdom)		10,167,922
	764,443	National City Capital Trust II, 6.63%		19,531,519
	405,630	PNC Capital Trust D, 6.13%		10,177,257
	641,041	Santander Finance Preferred SA Unipersonal, 10.50%, Series 10 (Spain)		18,455,570

Number of Shares			Value
		Preferred Stocks and Other Equity Interests (Continued)
	1,419,703	USB Capital XI, 6.60%	$	36,330,200
	1,325,659	Wachovia Capital Trust IV, 6.38%		33,512,659
	2,478,830	Wells Fargo & Co., 8.00%, Series J		71,613,399
				715,199,571
		Chemicals—0.1%
	21,367	E.I. du Pont de Nemours & Co., 4.50%, Series B		1,947,816
		Diversified Financial Services—23.5%
	110,030	Ameriprise Financial, Inc., 7.75%		3,063,235
	162,470	Capital One Capital II, 7.50%		4,155,983
	2,234,935	Citigroup Capital XII, 8.50%		59,114,031
	2,141,983	Citigroup Capital XIII, 7.88%		59,461,448
	1,293,129	Countrywide Capital V, 7.00%		32,017,874
	665,909	Credit Suisse Guernsey, 7.90% (Switzerland)		18,192,634
	771,086	General Electric Capital Corp., 5.88%		19,462,211
	1,576,044	General Electric Capital Corp., 6.10%		40,126,080
	803,013	JPMorgan Chase Capital XXIX, 6.70%		20,958,639
	843,376	JPMorgan Chase Capital XXVIII, 7.20%		22,079,584
	2,095,671	Morgan Stanley Capital Trust VII, 6.60%		51,490,636
	152,475	SLM Corp., 6.00%		3,288,886
				333,411,241
		Electric—5.3%
	946,146	Alabama Power Co., 5.88%, Series 07-B		24,732,256
	118,780	BGE Capital Trust II, 6.20%		2,963,561
	22,006	Consolidated Edison Co. of New York, Inc., 5.00%, Series A		2,092,330
	318,056	Dominion Resources, Inc., 8.38%, Series A		9,147,291
	118,447	Entergy Arkansas, Inc., 5.75%		2,961,175

See Notes to Financial Statements.

49

Schedule of Investments (Continued)

PowerShares Preferred Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Preferred Stocks and Other Equity Interests (Continued)
	210,708	Entergy Texas, Inc., 7.88%	$	6,140,031
	78,964	Interstate Power & Light Co., 8.38%, Series B		2,291,535
	612,060	NextEra Energy Capital Holdings, Inc., 6.60%, Series A		15,595,289
	54,982	Pacific Gas & Electric Co., 6.00%, Series A		1,463,071
	79,274	SCANA Corp., 7.70%		2,210,159
	186,931	Xcel Energy, Inc., 7.60%		5,069,569
				74,666,267
		Insurance—10.0%
	1,372,164	Aegon NV, 6.38%(Netherlands)		31,916,535
	888,780	Allianz SE, 8.38%(Germany)		23,719,316
	694,804	American International Group, Inc., 7.70%		17,529,905
	153,475	Arch Capital Group Ltd., 8.00%, Series A		3,885,987
	184,152	Assured Guaranty Municipal Holdings, Inc., 6.25%		4,091,858
	109,869	Berkley W.R. Capital Trust II, 6.75%		2,734,640
	98,603	Endurance Specialty Holdings Ltd., 7.75%, Series A		2,567,622
	155,294	Everest Re Capital Trust II, 6.20%, Series B		3,748,797
	75,660	Markel Corp., 7.50%		1,948,245
	763,276	MetLife, Inc., 6.50%, Series B		19,501,702
	243,778	PartnerRe Ltd., 6.75%, Series C		6,057,883
	241,439	Principal Financial Group, Inc., 6.52%, Series B		6,031,146
	100,053	Prudential Financial, Inc., 9.00%		2,809,488
	247,180	Prudential PLC, 6.50%(United Kingdom)		6,181,972
	263,904	RenaissanceRe Holdings Ltd., 6.60%, Series D		6,613,434
	46,795	Selective Insurance Group, Inc., 7.50%		1,176,426
	61,403	Torchmark Capital Trust III, 7.10%		1,556,566
				142,071,522
		Media—2.8%
	317,785	CBS Corp., 6.75%		8,068,561
	895,075	Comcast Corp., 7.00%, Series B		22,994,477
	334,710	Viacom, Inc., 6.85%		8,632,171
				39,695,209
		REITs—6.6%
	79,054	Equity Residential Properties, 6.48%, Series N		1,996,114
	370,251	Kimco Realty Corp., 7.75%, Series G		9,589,501
	136,059	PS Business Parks, Inc., 7.00%, Series H		3,401,475
	1,305,733	Public Storage, 6.50%, Series Q		32,982,816
	1,009,068	Public Storage, 7.25%, Series I		25,509,239

Number of Shares			Value
		Preferred Stocks and Other Equity Interests (Continued)
	167,099	Realty Income Corp., 6.75%, Series E	$	4,202,540
	286,859	Vornado Realty LP, 7.88%		7,756,667
	318,535	Vornado Realty Trust, 6.63%, Series I		7,858,258
				93,296,610
		Telecommunications—1.5%
	526,972	AT&T, Inc., 6.38%		13,938,409
	291,474	Telephone & Data Systems, Inc., 6.63%		7,170,261
				21,108,670
		Total Preferred Stocks and Other Equity Interests (Cost $1,262,046,413)		1,421,396,906
		Money Market Fund—1.6%
	22,809,778	Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $22,809,778)		22,809,778
		Total Investments (Cost $1,284,856,191)—101.9%		1,444,206,684
		Liabilities in excess of other assets—(1.9%)		(26,721,730	)
		Net Assets—100.0%	$	1,417,484,954

Investment Abbreviations:
REIT  – Real Estate Investment Trust

Notes to Schedule of Investments:

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

United Kingdom 12.9 %

See Notes to Financial Statements.

50

Portfolio Composition

PowerShares VRDO Tax-Free Weekly Portfolio

State Breakdown (% of the Fund's Net Assets) as of April 30, 2011 (Unaudited)

Alabama	0.2
California	4.3
Colorado	5.4
District of Columbia	0.7
Florida	5.9
Georgia	5.8
Illinois	11.5
Indiana	5.2
Kentucky	1.3
Massachusetts	4.8
Maryland	0.1
Mississippi	0.5
North Carolina	0.1
New Hampshire	3.2
New Jersey	7.4
New York	15.0
Pennsylvania	8.8
Rhode Island	0.7
Tennessee	3.1
Texas	13.0
Virginia	0.5
Other assets less liabilities	2.5

Schedule of Investments

PowerShares VRDO Tax-Free Weekly Portfolio

April 30, 2011 (Unaudited)

Principal Amount			Interest Rate (!)			Maturity Date	Value
		Municipal Bonds (#)—97.5%
		Ad Valorem Property Tax—6.6%
$	3,700,000	Chicago Illinois Board of Education Ser. 00B AGM		0.750	%	03/01/32	$	3,700,000
	18,320,000	Chicago Illinois Board of Education Ser. 00D AGM		0.800		03/01/32		18,320,000
	5,000,000	Luzerne County Pennsylvania Ser. 06A AGM		0.500		11/15/26		5,000,000
	400,000	New York - City of New York Sub-Ser. 96-J3 (Remarketed)		0.220		02/15/16		400,000
	1,500,000	Shelby County Tennessee Ser. 06C		0.750		12/01/31		1,500,000
								28,920,000
		College Revenue—10.6%
	2,160,000	Broward County Florida Educational Facilities Auth. Rev. (Nova Southeastern University) Ser. 02A		0.850		04/01/22		2,160,000
	1,500,000	Charlottesville Virginia Industrial Development Auth. Educational Facilities Rev. (University of Virginia Foundation Projects) Ser. 06B		0.280		12/01/37		1,500,000
	20,000,000	New York State Dormitory Auth. Rev. (Rockefeller University) Ser. 09B		0.220		07/01/40		20,000,000
	3,000,000	Rhode Island State Health & Educational Building Corp. Rev. (Catholic School Pool Program) Ser. 05A		0.340		04/01/35		3,000,000
	4,900,000	Shelby County Health Educational & Housing Facilities Board Rev. (Southern College of Optometry Project) Ser. 01		3.250		06/01/26		4,900,000
	15,100,000	University of Texas Rev. (Financing System) Ser. 08B		0.170		08/01/32		15,100,000
								46,660,000
		Electric Power Revenue—13.0%
	23,200,000	Austin Texas Water & Wastewater System Rev. Ref. Ser. 04 AGM		0.450		05/15/24		23,200,000
	12,770,000	JEA Florida Electric System Rev. Ser. Three 08C-2		0.240		10/01/34		12,770,000
	2,000,000	Long Island Power Auth. Electric System Rev. (Remarketed) Ser. 03I AGM		0.750		12/01/29		2,000,000
	9,000,000	Long Island Power Auth. Electric System Rev. Ser. 03D AGM		0.800	%	12/01/29		9,000,000
	7,600,000	Municipal Electric Auth. of Georgia (Project One-Remarketed) Ser. 94B AGM		1.000		01/01/16		7,600,000
	3,000,000	Municipal Electric Auth. of Georgia Subordinated (Remarketed) Ser. 94D AGM		0.700		01/01/22		3,000,000
								57,570,000

See Notes to Financial Statements.

51

Schedule of Investments (Continued)

PowerShares VRDO Tax-Free Weekly Portfolio

April 30, 2011 (Unaudited)

Principal Amount			Interest Rate (!)			Maturity Date	Value
		Municipal Bonds (#) (Continued)
		Fuel Sales Tax Revenue—0.7%
$	3,050,000	Metropolitan Transportation Auth. New York Dedicated Tax Fund Ser. 02-B AGM		0.750		11/01/22	$	3,050,000
		General Fund—0.1%
	500,000	North Carolina State Public Improvements Ser. 02D		0.240		05/01/21		500,000
		Highway Tolls Revenue—11.3%
	4,800,000	Delaware River Joint Toll Bridge Commission Pennsylvania Bridge Rev. Ser. 07B-1		0.800		07/01/32		4,800,000
	1,800,000	Illinois State Toll Highway Auth. Rev. Ref. Ser. 98B AGM		0.400		01/01/16		1,800,000
	1,400,000	Illinois State Toll Highway Auth. Rev. Ref. Ser. 98B AGM		0.400		01/01/17		1,400,000
	17,300,000	New Jersey State Turnpike Auth. Turnpike Rev. Ser. 03C-1 AGM		0.600		01/01/24		17,300,000
	14,850,000	New Jersey State Turnpike Auth. Turnpike Rev. Ser. 03C-2 AGM		0.750		01/01/24		14,850,000
	700,000	New Jersey Turnpike Auth. Turnpike Rev. Ser. 91-D NATL RE		0.280		01/01/18		700,000
	1,000,000	Orlando & Orange County Expressway Auth. (Florida Expressway) Ref. Rev. Ser. 03-C-2 AGM		0.650		07/01/25		1,000,000
	5,000,000	Orlando & Orange County Expressway Auth. (Florida Expressway) Rev. Ref. Sub-Ser. 08B-1		0.250		07/01/40		5,000,000
	2,910,000	Triborough Bridge & Tunnel Auth. New York Rev. Ser. 05A		0.750		11/01/35		2,910,000
								49,760,000
		Hospital Revenue—17.5%
	19,000,000	Harris County Texas Health Facilities Development Corp. Hospital Rev. Ref. (Memorial Hermann Healthcare System) Ser. 08A AGM		0.750		06/01/27		19,000,000
	15,585,000	Illinois Finance Auth. Rev. (Elmhurst Memorial Healthcare) Ser. 08E		0.470		01/01/48		15,585,000
	14,300,000	New Hampshire Health & Education Facilities Auth. Rev. (Dartmouth Hitchcock Obligation) Ser. 01A AGM		0.750		08/01/31		14,300,000
	5,550,000	Russell Kentucky Rev. (Bon Secours Health System Obligated Group) Ser. 02-B AGM		0.800		11/01/26		5,550,000
	22,970,000	White County Industrial Hospital Association Lease Rental Rev. Ser. 06		1.530		10/01/38		22,970,000
								77,405,000
		Industrial Revenue—2.5%
	900,000	Fairfax County Virginia Economic Development Auth. Rev. (NISH Project) Ser. 02		0.850		08/01/32		900,000
	2,300,000	Mississippi Business Financing Corp. Rev. (DDR Gulfport Promenade LLC Project) Ser. 07		1.530		12/01/37		2,300,000
	7,945,000	Rensselaer County New York Industrial Development Agency Civic Facility Rev. (Rensselaer Polytech Institute Project) Ser. 97-A		0.250		02/01/22		7,945,000
								11,145,000
		Lease Revenue—1.9%
	5,000,000	Broward County Florida School Board COP Ser. 05 AGM		0.290	%	07/01/21		5,000,000
	3,215,000	San Francisco California City & County Finance Corp. Lease Rev. Ref. (Moscone Center) Ser. 08-1		0.250		04/01/30		3,215,000
								8,215,000
		Local Housing Revenue—1.0%
	990,000	Alabama Housing Financing Auth. Ref. Ser. 89		1.830		04/01/14		990,000
	3,380,000	Colorado Housing & Financing Auth. (Multi-Family Project) Class I Ser. 05A2		0.800		04/01/36		3,380,000
								4,370,000

See Notes to Financial Statements.

52

Schedule of Investments (Continued)

PowerShares VRDO Tax-Free Weekly Portfolio

April 30, 2011 (Unaudited)

Principal Amount			Interest Rate (!)			Maturity Date	Value
		Municipal Bonds (#) (Continued)
		Miscellaneous Revenue—14.1%
$	400,000	Baltimore Maryland Industrial Development Auth. (Baltimore Capital Acquisition) Ser. 86		0.340		08/01/16	$	400,000
	1,500,000	Blount County Public Building Authority		0.910		06/01/32		1,500,000
	4,375,000	Clarksville Tennessee Public Building Auth. Rev. (Pooled Financing Tennessee Municipal Bond Fund) Ser. 99		0.310		06/01/29		4,375,000
	2,600,000	Delaware Valley Pennsylvania Regional Finance Auth. Local Government Rev. Ser. 85A		0.320		12/01/18		2,600,000
	15,000,000	Delaware Valley Regional Finance Auth. Local Government Rev. Ser. 85C		0.320		12/01/20		15,000,000
	11,500,000	Delaware Valley Regional Finance Auth. Local Government Rev. Ser. 86-1		0.310		08/01/16		11,500,000
	10,000,000	Illinois State Ser. 03B		3.250		10/01/33		10,000,000
	10,000,000	Massachusetts Bay Transportation Auth. (General Transportation System) Ser. 00		0.600		03/01/30		10,000,000
	1,600,000	Montgomery County Tennessee Public Building Auth. Pooled Funding Government Obligation (Tennessee County Loan Pool) Ser. 95		0.350		03/01/25		1,600,000
	5,165,000	Southern California Public Power Auth. Transmission Project Rev. (Southern Transmission Project) Ser. 01-A AGM		0.750		07/01/21		5,165,000
								62,140,000
		Multiple Utility Revenue—4.4%
	19,350,000	Colorado Springs Colorado Utilities Rev. (Sub-Lien Improvement) Ser. 06B		0.500		11/01/36		19,350,000
		Port, Airport & Marina Revenue—0.6%
	2,880,000	Metropolitan Washington DC Airport Auth. System Sub-Ser. 09-A-1		0.290		10/01/39		2,880,000
		Tax Increment Revenue—0.2%
	915,000	Denver Colorado Urban Renewal Auth. Tax Increment Rev. Ref. (South Broadway Urban Renewal Project) Ser. 02		3.000		12/01/15		915,000
		Transit Revenue—4.9%
	800,000	California Transit Finance Auth. Ser. 97 AGM		0.800		10/01/27		800,000
	16,190,000	Metropolitan Transportation Auth. New York Rev. Ref. Ser. 02D-1 AGM		0.400		11/01/29		16,190,000
	4,550,000	Metropolitan Transportation Auth. of New York Rev. Ref. Ser. 02D-2 AGM		0.800		11/01/32		4,550,000
								21,540,000
		Water Revenue—8.1%
	15,000,000	Forsyth County Georgia Water & Sewage Auth. Rev. Ser. 05B		0.750		04/01/35		15,000,000
	5,060,000	Massachusetts State Water Resources Auth. Ref. Subordinated Ser. 08C		0.260		11/01/26		5,060,000
	5,900,000	Massachusetts State Water Resources Auth. Ref. Subordinated Ser. 08D		0.260	%	08/01/11		5,900,000
	2,000,000	Metropolitan Water District Southern California Rev. Ser. 00B-2		0.300		07/01/35		2,000,000
	8,000,000	Metropolitan Water District Southern California Waterworks Rev. Ref. Ser. 08A-2		0.220		07/01/37		8,000,000
								35,960,000
		Total Investments (Cost $430,380,000)(a)—97.5%					$	430,380,000
		Other assets less liabilities—2.5%						10,863,182
		Net Assets—100.0%					$	441,243,182

See Notes to Financial Statements.

53

Schedule of Investments (Continued)

PowerShares VRDO Tax-Free Weekly Portfolio

April 30, 2011 (Unaudited)

Investment Abbreviations:
Auth.  – Authority
COP  – Certificate of Participation
Ref.  – Refunding Bonds
Rev.  – Revenue
Ser.  – Series

Glossary of Terms:
AGM  – Assured Guaranty Municipal Corp.
NATL RE  – National Public Finance Guarantee Corp.

Notes to Schedule of Investments:

(#)  Demand Securities payable upon demand by the Fund for an amount equal to par value plus accrued interest at specified time intervals.

(!)  Variable rate coupon. Stated interest rate was in effect at April 30, 2011.

(a)  This table, as of April 30, 2011, provides a listing of those entities that have either guaranteed, backed or otherwise enhanced the credit quality of more than 5% of the value of securities held in the portfolio. In instances where the entity has guaranteed, backed or otherwise enhanced the credit quality of a security, it is not primarily responsible for the borrower's obligations but may be called upon to satisfy the borrower's obligations.

Entities	Percentage of Total Investments
Assured Guaranty Municipal Corp.		42.2	%

See Notes to Financial Statements.

54

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Statements of Assets and Liabilities

April 30, 2011 (Unaudited)

	PowerShares 1-30 Laddered Treasury Portfolio			PowerShares Build America Bond Portfolio			PowerShares CEF Income Composite Portfolio			PowerShares Emerging Markets Sovereign Debt Portfolio			PowerShares Fundamental High Yield® Corporate Bond Portfolio			PowerShares Insured California Municipal Bond Portfolio
ASSETS:
Unaffiliated investments, at value	$	282,587,319		$	669,252,487		$	208,491,735		$	976,863,684		$	464,008,859		$	34,945,037
Affiliated investments, at value (Note 4)		—			—			797,175			—			—			—
Total investments, at value		282,587,319			669,252,487			209,288,910			976,863,684			464,008,859			34,945,037
Cash		—			904,015			36,828			948,425			—			515,004
Foreign currencies, at value		—			—			—			—			—			—
Receivables:
Dividends and interest		3,030,777			12,195,366			190,507			15,186,652			9,287,692			536,108
Investments sold		—			—			3,719,361			—			1,853,756			—
Foreign tax reclaims		—			—			—			—			—			—
Shares sold		—			—			—			10,657,900			—			—
Total Assets		285,618,096			682,351,868			213,235,606			1,003,656,661			475,150,307			35,996,149
LIABILITIES:
Due to custodian		90,197			—			—			—			413,571			—
Payables:
Shares repurchased		—			—			3,882,403			—			—			—
Investments purchased		—			—			—			12,061,433			3,071,570			—
Accrued unitary management fees		57,935			155,162			85,814			394,015			190,356			8,023
Accrued expenses		—			335			—			—			—			612
Total Liabilities		148,132			155,497			3,968,217			12,455,448			3,675,497			8,635
NET ASSETS	$	285,469,964		$	682,196,371		$	209,267,389		$	991,201,213		$	471,474,810		$	35,987,514
NET ASSETS CONSIST OF:
Shares of beneficial interest	$	294,720,562		$	667,698,392		$	205,972,444		$	960,622,141		$	450,273,940		$	37,596,555
Undistributed net investment income (loss)		(1,508,926	)		(166,144	)		(2,512,188	)		(2,335,780	)		(1,687,504	)		(29,533	)
Undistributed net realized gain (loss)		(202,834	)		(982,084	)		(1,343,992	)		15,420,293			7,081,276			(501,669	)
Net unrealized appreciation (depreciation)		(7,538,838	)		15,646,207			7,151,125			17,494,559			15,807,098			(1,077,839	)
Net Assets	$	285,469,964		$	682,196,371		$	209,267,389		$	991,201,213		$	471,474,810		$	35,987,514
Shares outstanding (unlimited amount authorized, $ 0.01 par value)		10,250,000			26,350,000			8,050,000			37,100,000			25,300,000			1,600,000
Net asset value	$	27.85		$	25.89		$	26.00		$	26.72		$	18.64		$	22.49
Share price	$	27.91		$	25.85		$	26.00		$	26.72		$	18.66		$	22.48
Unaffiliated investments, at cost	$	290,126,157		$	653,606,280		$	201,296,806		$	959,369,125		$	448,201,761		$	36,022,876
Affiliated investments, at cost	$	—		$	—		$	840,979		$	—		$	—		$	—
Total investments, at cost	$	290,126,157		$	653,606,280		$	202,137,785		$	959,369,125		$	448,201,761		$	36,022,876
Foreign currencies, at cost	$	—		$	—		$	—		$	—		$	—		$	—

See Notes to Financial Statements.

56

	PowerShares Insured National Municipal Bond Portfolio			PowerShares Insured New York Municipal Bond Portfolio			PowerShares International Corporate Bond Portfolio			PowerShares Preferred Portfolio			PowerShares VRDO Tax-Free Weekly Portfolio
ASSETS:
Unaffiliated investments, at value	$	474,167,409		$	36,967,968		$	48,308,078		$	1,444,206,684		$	430,380,000
Affiliated investments, at value (Note 4)		—			—			—			—			—
Total investments, at value		474,167,409			36,967,968			48,308,078			1,444,206,684			430,380,000
Cash		312,750			336,008			69,954			31,102			10,765,696
Foreign currencies, at value		—			—			10,811			—			—
Receivables:
Dividends and interest		7,427,723			635,295			1,129,905			4,958,803			189,840
Investments sold		7,529,548			—			575,325			11,630,753			—
Foreign tax reclaims		—			—			10,882			—			—
Shares sold		—			—			1,455,153			720,257			—
Total Assets		489,437,430			37,939,271			51,560,108			1,461,547,599			441,335,536
LIABILITIES:
Due to custodian		—			—			—			—			—
Payables:
Shares repurchased		—			—			—			—			—
Investments purchased		4,883,755			—			2,066,467			43,486,959			—
Accrued unitary management fees		109,779			8,621			18,571			575,686			91,742
Accrued expenses		612			612			—			—			612
Total Liabilities		4,994,146			9,233			2,085,038			44,062,645			92,354
NET ASSETS	$	484,443,284		$	37,930,038		$	49,475,070		$	1,417,484,954		$	441,243,182
NET ASSETS CONSIST OF:
Shares of beneficial interest	$	492,242,772		$	38,453,708		$	47,040,712		$	1,313,822,839		$	441,006,541
Undistributed net investment income (loss)		(122,082	)		(69,487	)		(242,943	)		(1,107,521	)		233,541
Undistributed net realized gain (loss)		(6,090,644	)		(448,552	)		(112,829	)		(54,580,857	)		3,100
Net unrealized appreciation (depreciation)		(1,586,762	)		(5,631	)		2,790,130			159,350,493			—
Net Assets	$	484,443,284		$	37,930,038		$	49,475,070		$	1,417,484,954		$	441,243,182
Shares outstanding (unlimited amount authorized, $ 0.01 par value)		21,250,000			1,700,000			1,700,000			98,400,000			17,650,000
Net asset value	$	22.80		$	22.31		$	29.10		$	14.41		$	25.00
Share price	$	22.79		$	22.28		$	29.09		$	14.42		$	25.00
Unaffiliated investments, at cost	$	475,754,171		$	36,973,599		$	45,576,688		$	1,284,856,191		$	430,380,000
Affiliated investments, at cost	$	—		$	—		$	—		$	—		$	—
Total investments, at cost	$	475,754,171		$	36,973,599		$	45,576,688		$	1,284,856,191		$	430,380,000
Foreign currencies, at cost	$	—		$	—		$	10,748		$	—		$	—

57

Statements of Operations

Six Months Ended April 30, 2011 (Unaudited)

	PowerShares 1-30 Laddered Treasury Portfolio			PowerShares Build America Bond Portfolio			PowerShares CEF Income Composite Portfolio			PowerShares Emerging Markets Sovereign Debt Portfolio			PowerShares Fundamental High Yield® Corporate Bond Portfolio			PowerShares Insured California Municipal Bond Portfolio
INVESTMENT INCOME:
Unaffiliated interest income	$	3,880,704		$	19,197,854		$	—		$	26,792,107		$	13,479,934		$	961,106
Unaffiliated dividend income		346			—			6,676,740			2,348			1,594			—
Affiliated dividend income (Note 4)		—			—			7,398			—			—			—
Foreign withholding tax		—			—			—			(86,737	)		—			—
Total Income		3,881,050			19,197,854			6,684,138			26,707,718			13,481,528			961,106
EXPENSES:
Unitary management fees		306,420			1,087,203			466,075			2,287,401			1,059,770			67,980
Other expenses		—			335			—			—			—			—
Total Expenses		306,420			1,087,538			466,075			2,287,401			1,059,770			67,980
Unitary management fees waivers		—			(217,441	)		—			—			—			(13,596	)
Net Expenses		306,420			870,097			466,075			2,287,401			1,059,770			54,384
Net Investment Income		3,574,630			18,327,757			6,218,063			24,420,317			12,421,758			906,722
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) from:
Investments		(480,656	)		(866,720	)		(2,147,344	)		(1,071,648	)		1,585,910			(496,328	)
In-kind redemptions		294,035			—			1,820,700			18,470,997			6,238,518			—
Foreign currencies		—			—			—			—			—			—
Distributions from underlying fund shares		—			—			46,894			—			—			—
Net realized gain (loss)		(186,621	)		(866,720	)		(279,750	)		17,399,349			7,824,428			(496,328	)
Net change in unrealized appreciation (depreciation) on:
Investments		(9,767,432	)		(546,357	)		1,805,523			(69,101,880	)		(2,382,239	)		(2,673,715	)
Foreign currencies		—			—			—			—			—			—
Net change in unrealized appreciation (depreciation)		(9,767,432	)		(546,357	)		1,805,523			(69,101,880	)		(2,382,239	)		(2,673,715	)
Net realized and unrealized gain (loss)		(9,954,053	)		(1,413,077	)		1,525,773			(51,702,531	)		5,442,189			(3,170,043	)
Net increase (decrease) in net assets resulting from operations	$	(6,379,423	)	$	16,914,680		$	7,743,836		$	(27,282,214	)	$	17,863,947		$	(2,263,321	)

See Notes to Financial Statements.

58

	PowerShares Insured National Municipal Bond Portfolio			PowerShares Insured New York Municipal Bond Portfolio			PowerShares International Corporate Bond Portfolio			PowerShares Preferred Portfolio			PowerShares VRDO Tax-Free Weekly Portfolio
INVESTMENT INCOME:
Unaffiliated interest income	$	13,053,580		$	899,307		$	761,546		$	—		$	2,016,624
Unaffiliated dividend income		—			—			—			49,504,756			—
Affiliated dividend income (Note 4)		—			—			—			—			—
Foreign withholding tax		—			—			(14,391	)		—			—
Total Income		13,053,580			899,307			747,155			49,504,756			2,016,624
EXPENSES:
Unitary management fees		889,594			66,333			98,833			3,392,159			659,965
Other expenses		—			—			—			—			—
Total Expenses		889,594			66,333			98,833			3,392,159			659,965
Unitary management fees waivers		(177,919	)		(13,267	)		—			—			—
Net Expenses		711,675			53,066			98,833			3,392,159			659,965
Net Investment Income		12,341,905			846,241			648,322			46,112,597			1,356,659
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) from:
Investments		(4,427,144	)		(186,583	)		(55,219	)		1,847,350			3,100
In-kind redemptions		—			—			—			14,860,211			—
Foreign currencies		—			—			(54,963	)		—			—
Distributions from underlying fund shares		—			—			—			—			—
Net realized gain (loss)		(4,427,144	)		(186,583	)		(110,182	)		16,707,561			3,100
Net change in unrealized appreciation (depreciation) on:
Investments		(34,444,127	)		(2,308,662	)		1,757,600			(3,489,709	)		(3,100	)
Foreign currencies		—			—			73,603			—			—
Net change in unrealized appreciation (depreciation)		(34,444,127	)		(2,308,662	)		1,831,203			(3,489,709	)		(3,100	)
Net realized and unrealized gain (loss)		(38,871,271	)		(2,495,245	)		1,721,021			13,217,852			—
Net increase (decrease) in net assets resulting from operations	$	(26,529,366	)	$	(1,649,004	)	$	2,369,343		$	59,330,449		$	1,356,659

59

Statements of Changes in Net Assets

	PowerShares 1-30 Laddered Treasury Portfolio						PowerShares Build America Bond Portfolio						PowerShares CEF Income Composite Portfolio
	Six Months Ended April 30, 2011 (Unaudited)			Year Ended October 31, 2010			Six Months Ended April 30, 2011 (Unaudited)			For the Period November 16, 2009* Through October 31, 2010			Six Months Ended April 30, 2011 (Unaudited)			For the Period February 16, 2010* Through October 31, 2010
OPERATIONS:
Net investment income	$	3,574,630		$	2,372,573		$	18,327,757		$	15,156,662		$	6,218,063		$	4,013,118
Net realized gain (loss)		(186,621	)		2,213,832			(866,720	)		(115,364	)		(279,750	)		(730,229	)
Net change in unrealized appreciation (depreciation)		(9,767,432	)		2,602,479			(546,357	)		16,192,564			1,805,523			5,345,602
Net increase (decrease) in net assets resulting from operations		(6,379,423	)		7,188,884			16,914,680			31,233,862			7,743,836			8,628,491
Undistributed net investment income (loss) included in the price of units issued and redeemed		(922,632	)		(14,231	)		(9,917	)		104,373			(400,210	)		394,437
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income		(4,160,924	)		(2,372,573	)		(18,483,984	)		(15,160,337	)		(8,330,041	)		(4,013,118	)
Tax-exempt income		—			—			—			—			—			—
Return of capital		—			(343,489	)		—			(274,123	)		—			(1,913,266	)
Total distributions to shareholders		(4,160,924	)		(2,716,062	)		(18,483,984	)		(15,434,460	)		(8,330,041	)		(5,926,384	)
SHAREHOLDER TRANSACTIONS:
Proceeds from shares sold		232,582,764			46,531,933			139,426,958			553,806,111			60,300,530			178,467,464
Value of shares repurchased		(12,596,686	)		(41,160,807	)		(25,266,796	)		—			(16,540,596	)		(15,075,911	)
Net income (loss) equalization		922,632			14,231			9,917			(104,373	)		400,210			(394,437	)
Net increase (decrease) in net assets resulting from shares transactions		220,908,710			5,385,357			114,170,079			553,701,738			44,160,144			162,997,116
Increase (Decrease) in Net Assets		209,445,731			9,843,948			112,590,858			569,605,513			43,173,729			166,093,660
NET ASSETS:
Beginning of period		76,024,233			66,180,285			569,605,513			—			166,093,660			—
End of period	$	285,469,964		$	76,024,233		$	682,196,371		$	569,605,513		$	209,267,389		$	166,093,660
Undistributed net investment income (loss) at end of period	$	(1,508,926	)	$	—		$	(166,144	)	$	—		$	(2,512,188	)	$	—
CHANGES IN SHARES OUTSTANDING:
Shares sold		8,100,000			1,650,000			5,550,000			21,800,000			2,350,000			6,950,000
Shares repurchased		(450,000	)		(1,450,000	)		(1,000,000	)		—			(650,000	)		(600,000	)
Shares outstanding, beginning of period		2,600,000			2,400,000			21,800,000			—			6,350,000			—
Shares outstanding, end of period		10,250,000			2,600,000			26,350,000			21,800,000			8,050,000			6,350,000

*  Commencement of Investment Operations.

See Notes to Financial Statements.

60

	PowerShares Emerging Markets Sovereign Debt Portfolio						PowerShares Fundamental High Yield® Corporate Bond Portfolio						PowerShares Insured California Municipal Bond Portfolio
	Six Months Ended April 30, 2011 (Unaudited)			Year Ended October 31, 2010			Six Months Ended April 30, 2011 (Unaudited)			Year Ended October 31, 2010			Six Months Ended April 30, 2011 (Unaudited)			Year Ended October 31, 2010
OPERATIONS:
Net investment income	$	24,420,317		$	35,667,756		$	12,421,758		$	17,867,170		$	906,722		$	1,644,013
Net realized gain (loss)		17,399,349			3,996,026			7,824,428			10,253,446			(496,328	)		(5,341	)
Net change in unrealized appreciation (depreciation)		(69,101,880	)		65,240,729			(2,382,239	)		3,874,819			(2,673,715	)		1,344,695
Net increase (decrease) in net assets resulting from operations		(27,282,214	)		104,904,511			17,863,947			31,995,435			(2,263,321	)		2,983,367
Undistributed net investment income (loss) included in the price of units issued and redeemed		(268,630	)		(1,385,806	)		61,216			737,118			13,938			(20,779	)
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income		(26,487,467	)		(35,667,756	)		(14,170,478	)		(18,390,580	)		(950,193	)		(60,190	)
Tax-exempt income		—			—			—			—			—			(1,648,334	)
Return of capital		—			(870,695	)		—			—			—			—
Total distributions to shareholders		(26,487,467	)		(36,538,451	)		(14,170,478	)		(18,390,580	)		(950,193	)		(1,708,524	)
SHAREHOLDER TRANSACTIONS:
Proceeds from shares sold		261,755,317			597,967,608			130,984,407			281,534,114			7,835,453			10,638,278
Value of shares repurchased		(219,699,324	)		(83,295,548	)		(55,096,045	)		(75,182,109	)		(12,274,641	)		—
Net income (loss) equalization		268,630			1,385,806			(61,216	)		(737,118	)		(13,938	)		20,779
Net increase (decrease) in net assets resulting from shares transactions		42,324,623			516,057,866			75,827,146			205,614,887			(4,453,126	)		10,659,057
Increase (Decrease) in Net Assets		(11,713,688	)		583,038,120			79,581,831			219,956,860			(7,652,702	)		11,913,121
NET ASSETS:
Beginning of period		1,002,914,901			419,876,781			391,892,979			171,936,119			43,640,216			31,727,095
End of period	$	991,201,213		$	1,002,914,901		$	471,474,810		$	391,892,979		$	35,987,514		$	43,640,216
Undistributed net investment income (loss) at end of period	$	(2,335,780	)	$	—		$	(1,687,504	)	$	—		$	(29,533	)	$	—
CHANGES IN SHARES OUTSTANDING:
Shares sold		9,800,000			22,300,000			7,100,000			15,600,000			350,000			450,000
Shares repurchased		(8,200,000	)		(3,200,000	)		(3,000,000	)		(4,200,000	)		(550,000	)		—
Shares outstanding, beginning of period		35,500,000			16,400,000			21,200,000			9,800,000			1,800,000			1,350,000
Shares outstanding, end of period		37,100,000			35,500,000			25,300,000			21,200,000			1,600,000			1,800,000

61

Statements of Changes in Net Assets (Continued)

	PowerShares Insured National Municipal Bond Portfolio						PowerShares Insured New York Municipal Bond Portfolio						PowerShares International Corporate Bond Portfolio
	Six Months Ended April 30, 2011 (Unaudited)			Year Ended October 31, 2010			Six Months Ended April 30, 2011 (Unaudited)			Year Ended October 31, 2010			Six Months Ended April 30, 2011 (Unaudited)			For the Period June 1, 2010* Through October 31, 2010
OPERATIONS:
Net investment income	$	12,341,905		$	24,021,840		$	846,241		$	1,679,546		$	648,322		$	81,544
Net realized gain (loss)		(4,427,144	)		1,119,903			(186,583	)		5,046			(110,182	)		(71,971	)
Net change in unrealized appreciation (depreciation)		(34,444,127	)		15,017,058			(2,308,662	)		1,471,771			1,831,203			958,927
Net increase (decrease) in net assets resulting from operations		(26,529,366	)		40,158,801			(1,649,004	)		3,156,363			2,369,343			968,500
Undistributed net investment income (loss) included in the price of units issued and redeemed		234,766			(389,154	)		1,987			(17,667	)		(189,824	)		(328,637	)
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income		(12,698,753	)		(603,904	)		(917,715	)		(46,279	)		(719,830	)		—
Tax-exempt income		—			(24,021,840	)		—			(1,672,734	)		—			—
Return of capital		—			—			—			—			—			(106,097	)
Total distributions to shareholders		(12,698,753	)		(24,625,744	)		(917,715	)		(1,719,013	)		(719,830	)		(106,097	)
SHAREHOLDER TRANSACTIONS:
Proceeds from shares sold		37,964,354			218,698,787			2,199,409			7,000,013			16,616,832			33,081,133
Value of shares repurchased		(172,359,437	)		(22,453,010	)		(3,400,267	)		—			(2,734,811	)		—
Net income (loss) equalization		(234,766	)		389,154			(1,987	)		17,667			189,824			328,637
Net increase (decrease) in net assets resulting from shares transactions		(134,629,849	)		196,634,931			(1,202,845	)		7,017,680			14,071,845			33,409,770
Increase (Decrease) in Net Assets		(173,623,202	)		211,778,834			(3,767,577	)		8,437,363			15,531,534			33,943,536
NET ASSETS:
Beginning of period		658,066,486			446,287,652			41,697,615			33,260,252			33,943,536			—
End of period	$	484,443,284		$	658,066,486		$	37,930,038		$	41,697,615		$	49,475,070		$	33,943,536
Undistributed net investment income (loss) at end of period	$	(122,082	)	$	—		$	(69,487	)	$	—		$	(242,943	)	$	18,389
CHANGES IN SHARES OUTSTANDING:
Shares sold		1,700,000			9,150,000			100,000			300,000			600,000			1,200,000
Shares repurchased		(7,550,000	)		(950,000	)		(150,000	)		—			(100,000	)		—
Shares outstanding, beginning of period		27,100,000			18,900,000			1,750,000			1,450,000			1,200,000			—
Shares outstanding, end of period		21,250,000			27,100,000			1,700,000			1,750,000			1,700,000			1,200,000

*  Commencement of Investment Operations.

See Notes to Financial Statements.

62

	PowerShares Preferred Portfolio						PowerShares VRDO Tax-Free Weekly Portfolio
	Six Months Ended April 30, 2011 (Unaudited)			Year Ended October 31, 2010			Six Months Ended April 30, 2011 (Unaudited)			Year Ended October 31, 2010
OPERATIONS:
Net investment income	$	46,112,597		$	67,851,970		$	1,356,659		$	2,598,825
Net realized gain (loss)		16,707,561			17,294,444			3,100			—
Net change in unrealized appreciation (depreciation)		(3,489,709	)		74,744,017			(3,100	)		—
Net increase (decrease) in net assets resulting from operations		59,330,449			159,890,431			1,356,659			2,598,825
Undistributed net investment income (loss) included in the price of units issued and redeemed		(427,887	)		(3,433,172	)		175,836			451,710
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income		(46,792,231	)		(72,023,335	)		(1,298,954	)		(18,602	)
Tax-exempt income		—			—			—			(2,598,825	)
Return of capital		—			(1,246,520	)		—			—
Total distributions to shareholders		(46,792,231	)		(73,269,855	)		(1,298,954	)		(2,617,427	)
SHAREHOLDER TRANSACTIONS:
Proceeds from shares sold		110,051,528			529,699,942			7,499,640			73,741,501
Value of shares repurchased		(51,085,744	)		(40,264,274	)		(203,727,168	)		(506,188,944	)
Net income (loss) equalization		427,887			3,433,172			(175,836	)		(451,710	)
Net increase (decrease) in net assets resulting from shares transactions		59,393,671			492,868,840			(196,403,364	)		(432,899,153	)
Increase (Decrease) in Net Assets		71,504,002			576,056,244			(196,169,823	)		(432,466,045	)
NET ASSETS:
Beginning of period		1,345,980,952			769,924,708			637,413,005			1,069,879,050
End of period	$	1,417,484,954		$	1,345,980,952		$	441,243,182		$	637,413,005
Undistributed net investment income (loss) at end of period	$	(1,107,521	)	$	—		$	233,541		$	—
CHANGES IN SHARES OUTSTANDING:
Shares sold		7,750,000			38,050,000			300,000			2,950,000
Shares repurchased		(3,600,000	)		(3,000,000	)		(8,150,000	)		(20,250,000	)
Shares outstanding, beginning of period		94,250,000			59,200,000			25,500,000			42,800,000
Shares outstanding, end of period		98,400,000			94,250,000			17,650,000			25,500,000

63

Financial Highlights

PowerShares 1-30 Laddered Treasury Portfolio

	Six Months Ended April 30, 2011			Year Ended October 31,									For the Period October 11, 2007* Through
	(Unaudited)			2010			2009			2008			October 31, 2007
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	29.24		$	27.58		$	26.31		$	25.64		$	25.21
Net investment income**		0.39			0.87			0.92			0.99			0.07
Net realized and unrealized gain (loss) on investments		(1.34	)		1.79			1.33			0.79			0.36
Total from investment operations		(0.95	)		2.66			2.25			1.78			0.43
Distribution to shareholders from:
Net investment income		(0.44	)		(0.87	)		(0.91	)		(1.10	)		—
Return of capital		—			(0.13	)		(0.07	)		(0.01	)		—
Total distributions		(0.44	)		(1.00	)		(0.98	)		(1.11	)		—
Net asset value at end of period	$	27.85		$	29.24		$	27.58		$	26.31		$	25.64
Share price at end of period***	$	27.91		$	29.23		$	27.59		$	26.36
NET ASSET VALUE TOTAL RETURN****		(3.23	)%		9.91	%		8.55	%		7.00	%		1.71	%
SHARE PRICE TOTAL RETURN****		(2.99	)%		9.84	%		8.38	%		6.95	%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	285,470		$	76,024		$	66,180		$	63,147		$	15,384
Ratio to average net assets of:
Expenses		0.25	%†		0.25	%		0.25	%		0.25	%		0.25	%†
Net investment income		2.92	%†		3.12	%		3.22	%		3.79	%		4.55	%†
Portfolio turnover rate ††		3	%		1	%		1	%		0	%(a)		0	%
Undistributed net investment income (loss) included in price of units issued and redeemed**#	$	(0.10	)	$	(0.01	)	$	0.01		$	(0.04	)	$	0.01

PowerShares Build America Bond Portfolio

	Six Months Ended April 30, 2011 (Unaudited)			For the Period November 16, 2009* Through October 31, 2010
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	26.13		$	24.90
Net investment income**		0.74			1.30
Net realized and unrealized gain (loss) on investments		(0.24	)		1.17
Total from investment operations		0.50			2.47
Distribution to shareholders from:
Net investment income		(0.74	)		(1.22	)
Return of capital		—			(0.02	)
Total distributions		(0.74	)		(1.24	)
Net asset value at end of period	$	25.89		$	26.13
Share price at end of period***	$	25.85		$	26.16
NET ASSET VALUE TOTAL RETURN****		2.04	%		10.16	%(b)
SHARE PRICE TOTAL RETURN****		1.77	%		10.29	%(b)
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	682,196		$	569,606
Ratio to average net assets of:
Expenses, after Waivers>		0.28	%†		0.28	%†
Expenses, prior to Waivers>		0.35	%†		0.35	%†
Net investment income		5.90	%†		5.42	%†
Portfolio turnover rate ††		3	%		5	%
Undistributed net investment income (loss) included in price of units issued and redeemed**#	$	(0.00	)(c)	$	0.01

*  Commencement of Investment Operations.

**  Based on average shares outstanding.

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

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

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

†  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 1%.

(b)  The net asset value total return from Fund Inception (November 17, 2009, first day of trading on the Exchange) to October 31, 2010 was 10.34%. The share price total return from Fund Inception to October 31, 2010 was 10.06%.

(c)  Amount represents less than $0.005.

See Notes to Financial Statements.

64

Financial Highlights (Continued)

See Notes to Financial Statements.

PowerShares CEF Income Composite Portfolio

	Six Months Ended April 30, 2011 (Unaudited)			For the Period February 16, 2010* Through October 31, 2010
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	26.16		$	25.00
Net investment income**		0.85			1.03
Net realized and unrealized gain on investments		0.13			1.58
Total from investment operations		0.98			2.61
Distribution to shareholders from:
Net investment income		(1.14	)		(0.98	)
Return of capital		—			(0.47	)
Total distributions		(1.14	)		(1.45	)
Net asset value at end of period	$	26.00		$	26.16
Share price at end of period***	$	26.00		$	26.18
NET ASSET VALUE TOTAL RETURN****		3.94	%		10.78	%(a)
SHARE PRICE TOTAL RETURN****		3.85	%		10.81	%(a)
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	209,267		$	166,094
Ratio to average net assets of:
Expenses>		0.50	%†		0.50	%†
Net investment income		6.67	%†		5.90	%†
Portfolio turnover rate ††		17	%		29	%
Undistributed net investment income (loss) included in price of units issued and redeemed**#	$	(0.05	)	$	0.10

PowerShares Emerging Markets Sovereign Debt Portfolio

	Six Months Ended April 30, 2011			Year Ended October 31,									For the Period October 11, 2007* Through
	(Unaudited)			2010			2009			2008			October 31, 2007
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	28.25		$	25.60		$	18.09		$	25.92		$	25.50
Net investment income**		0.70			1.54			1.58			1.47			0.07
Net realized and unrealized gain (loss) on investments		(1.46	)		2.72			7.52			(7.81	)		0.35
Total from investment operations		(0.76	)		4.26			9.10			(6.34	)		0.42
Distribution to shareholders from:
Net investment income		(0.77	)		(1.57	)		(1.57	)		(1.48	)		—
Return of capital		—			(0.04	)		(0.02	)		(0.01	)		—
Total distributions		(0.77	)		(1.61	)		(1.59	)		(1.49	)		—
Net asset value at end of period	$	26.72		$	28.25		$	25.60		$	18.09		$	25.92
Share price at end of period***	$	26.72		$	28.28		$	25.89		$	16.69
NET ASSET VALUE TOTAL RETURN****		(2.65	)%		17.31	%		52.11	%		(25.83	)%		1.65	%
SHARE PRICE TOTAL RETURN****		(2.75	)%		16.10	%		66.52	%		(32.26	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	991,201		$	1,002,915		$	419,877		$	68,725		$	15,552
Ratio to average net assets of:
Expenses		0.50	%†		0.50	%		0.50	%		0.50	%		0.50	%†
Net investment income		5.34	%†		5.86	%		6.89	%		5.85	%		4.91	%†
Portfolio turnover rate ††		5	%		5	%		13	%		48	%		0	%
Undistributed net investment income (loss) included in price of units issued and redeemed**#	$	(0.01	)	$	(0.06	)	$	(0.04	)	$	(0.04	)	$	0.03

*  Commencement of Investment Operations.

**  Based on average shares outstanding.

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

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

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

†  Annualized.

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

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

(a)  The net asset value total return from Fund Inception (February 19, 2010, first day of trading on the Exchange) to October 31, 2010 was9.81%. The share price total return from Fund Inception to October 31, 2010 was 9.76%.

65

Financial Highlights (Continued)

PowerShares Fundamental High Yield^® Corporate Bond Portfolio

	Six Months Ended April 30, 2011			Year Ended October 31,						For the Period November 13, 2007* Through
	(Unaudited)			2010			2009			October 31, 2008
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	18.49		$	17.54		$	15.73		$	24.84
Net investment income**		0.54			1.39			1.61			1.78
Net realized and unrealized gain (loss) on investments		0.22			1.03			1.81			(9.04	)
Total from investment operations		0.76			2.42			3.42			(7.26	)
Distribution to shareholders from:
Net investment income		(0.61	)		(1.47	)		(1.61	)		(1.85	)
Net asset value at end of period	$	18.64		$	18.49		$	17.54		$	15.73
Share price at end of period***	$	18.66		$	18.50		$	17.51		$	16.10
NET ASSET VALUE TOTAL RETURN****		4.20	%		14.47	%		23.73	%		(31.14	)%(a)
SHARE PRICE TOTAL RETURN****		4.26	%		14.70	%		20.39	%		(29.63	)%(a)
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	471,475		$	391,893		$	171,936		$	15,728
Ratio to average net assets of:
Expenses		0.50	%†		0.50	%		0.50	%		0.50	%†
Net investment income		5.86	%†		7.89	%		9.93	%		9.35	%†
Portfolio turnover rate ††		19	%		33	%		68	%		92	%
Undistributed net investment income (loss) included in price of units issued and redeemed**#	$	0.00	(b)	$	0.06		$	0.07		$	(0.02	)

PowerShares Insured California Municipal Bond Portfolio

	Six Months Ended April 30, 2011			Year Ended October 31,									For the Period October 11, 2007* Through
	(Unaudited)			2010			2009			2008			October 31, 2007
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	24.24		$	23.50		$	21.26		$	24.97		$	24.90
Net investment income**		0.52			1.03			1.06			1.03			0.06
Net realized and unrealized gain (loss) on investments		(1.72	)		0.78			2.26			(3.64	)		0.01
Total from investment operations		(1.20	)		1.81			3.32			(2.61	)		0.07
Distribution to shareholders from:
Net investment income		(0.55	)		(0.04	)		(0.02	)		—			—
Tax-exempt income		—			(1.03	)		(1.06	)		(1.10	)		—
Total distributions		(0.55	)		(1.07	)		(1.08	)		(1.10	)		—
Net asset value at end of period	$	22.49		$	24.24		$	23.50		$	21.26		$	24.97
Share price at end of period***	$	22.48		$	24.24		$	23.48		$	21.18
NET ASSET VALUE TOTAL RETURN****		(4.90	)%		7.91	%		16.06	%		(10.82	)%		0.28	%
SHARE PRICE TOTAL RETURN****		(4.93	)%		8.00	%		16.38	%		(11.04	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	35,988		$	43,640		$	31,727		$	17,011		$	12,487
Ratio to average net assets of:
Expenses, after Waivers		0.28	%†		0.28	%		0.28	%		0.28	%		0.28	%†
Expenses, prior to Waivers		0.35	%†		0.35	%		0.35	%		0.35	%		0.35	%†
Net investment income, after Waivers		4.67	%†		4.31	%		4.71	%		4.42	%		3.90	%†
Portfolio turnover rate ††		20	%		8	%		34	%		20	%		0	%
Undistributed net investment income (loss) included in price of units issued and redeemed**#	$	0.01		$	(0.01	)	$	(0.01	)	$	(0.01	)	$	0.00	(b)

*  Commencement of Investment Operations.

**  Based on average shares outstanding.

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

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

†  Annualized.

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

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

(a)  The net asset value total return from Fund Inception (November 15, 2007, first day trading on the exchange) to October 31, 2008 was (30.64)%. The share price total return from Fund Inception to October 31, 2008 was (30.45)%.

(b)  Amount represents less than $0.005.

See Notes to Financial Statements.

66

Financial Highlights (Continued)

PowerShares Insured National Municipal Bond Portfolio

	Six Months Ended April 30, 2011			Year Ended October 31,									For the Period October 11, 2007* Through
	(Unaudited)			2010			2009			2008			October 31, 2007
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	24.28		$	23.61		$	21.00		$	25.05		$	24.92
Net investment income**		0.54			1.07			1.12			1.05			0.06
Net realized and unrealized gain (loss) on investments		(1.45	)		0.70			2.60			(3.98	)		0.07
Total from investment operations		(0.91	)		1.77			3.72			(2.93	)		0.13
Distribution to shareholders from:
Net investment income		(0.57	)		(0.03	)		(0.00	)(a)		(0.00	)(a)		—
Tax-exempt income		—			(1.07	)		(1.11	)		(1.12	)		—
Total distributions		(0.57	)		(1.10	)		(1.11	)		(1.12	)		—
Net asset value at end of period	$	22.80		$	24.28		$	23.61		$	21.00		$	25.05
Share price at end of period***	$	22.79		$	24.29		$	23.56		$	21.29
NET ASSET VALUE TOTAL RETURN****		(3.69	)%		7.70	%		18.22	%		(12.13	)%		0.52	%
SHARE PRICE TOTAL RETURN****		(3.76	)%		7.97	%		16.35	%		(10.64	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	484,443		$	658,066		$	446,288		$	174,317		$	12,525
Ratio to average net assets of:
Expenses, after Waivers		0.28	%†		0.28	%		0.28	%		0.28	%		0.28	%†
Expenses, prior to Waivers		0.35	%†		0.35	%		0.35	%		0.35	%		0.35	%†
Net investment income, after Waivers		4.86	%†		4.47	%		4.97	%		4.55	%		3.96	%†
Portfolio turnover rate ††		5	%		8	%		25	%		63	%		0	%
Undistributed net investment income (loss) included in price of units issued and redeemed**#	$	0.01		$	(0.02	)	$	(0.01	)	$	(0.04	)	$	0.00	(a)

PowerShares Insured New York Municipal Bond Portfolio

	Six Months Ended April 30, 2011			Year Ended October 31,									For the Period October 11, 2007* Through
	(Unaudited)			2010			2009			2008			October 31, 2007
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	23.83		$	22.94		$	21.14		$	24.95		$	24.84
Net investment income**		0.49			1.03			1.06			1.02			0.05
Net realized and unrealized gain (loss) on investments		(1.47	)		0.92			1.80			(3.72	)		0.06
Total from investment operations		(0.98	)		1.95			2.86			(2.70	)		0.11
Distribution to shareholders from:
Net investment income		(0.54	)		(0.03	)		(0.02	)		(0.00	)(a)		—
Tax-exempt income		—			(1.03	)		(1.04	)		(1.11	)		—
Total distributions		(0.54	)		(1.06	)		(1.06	)		(1.11	)		—
Net asset value at end of period	$	22.31		$	23.83		$	22.94		$	21.14		$	24.95
Share price at end of period***	$	22.28		$	23.83		$	22.92		$	21.27
NET ASSET VALUE TOTAL RETURN****		(4.08	)%		8.71	%		13.92	%		(11.22	)%		0.44	%
SHARE PRICE TOTAL RETURN****		(4.20	)%		8.81	%		13.13	%		(10.74	)%
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	37,930		$	41,698		$	33,260		$	16,908		$	14,971
Ratio to average net assets of:
Expenses, after Waivers		0.28	%†		0.28	%		0.28	%		0.28	%		0.28	%†
Expenses, prior to Waivers		0.35	%†		0.35	%		0.35	%		0.35	%		0.35	%†
Net investment income, after Waivers		4.47	%†		4.42	%		4.75	%		4.38	%		3.83	%†
Portfolio turnover rate ††		26	%		3	%		10	%		34	%		0	%
Undistributed net investment income (loss) included in price of units issued and redeemed**#	$	0.00	(a)	$	(0.01	)	$	(0.01	)	$	(0.02	)	$	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.

67

Financial Highlights (Continued)

PowerShares International Corporate Bond Portfolio

	Six Months Ended April 30, 2011 (Unaudited)			For the Period June 1, 2010* Through October 31, 2010
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	28.29		$	25.00
Net investment income**		0.44			0.17
Net realized and unrealized gain on investments		0.85			3.49
Total from investment operations		1.29			3.66
Distribution to shareholders from:
Net investment income		(0.48	)		—
Return of capital		—			(0.37	)
Total distributions		(0.48	)		(0.37	)
Net asset value at end of period	$	29.10		$	28.29
Share price at end of period***	$	29.09		$	28.42
NET ASSET VALUE TOTAL RETURN****		4.71	%		14.75	%(a)
SHARE PRICE TOTAL RETURN****		4.18	%		15.28	%(a)
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	49,475		$	33,944
Ratio to average net assets of:
Expenses		0.50	%†		0.50	%†
Net investment income		3.28	%†		2.53	%†
Portfolio turnover rate ††		10	%		14	%
Undistributed net investment income (loss) included in price of units issued and redeemed**#	$	(0.13	)	$	(0.70	)

PowerShares Preferred Portfolio

	Six Months Ended April 30, 2011			Year Ended October 31,						For the Period January 28, 2008* Through
	(Unaudited)			2010			2009			October 31, 2008
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	14.28		$	13.01		$	12.25		$	20.06
Net investment income**		0.48			0.92			0.98			0.85
Net realized and unrealized gain (loss) on investments		0.14			1.36			0.89			(7.66	)
Total from investment operations		0.62			2.28			1.87			(6.81	)
Distribution to shareholders from:
Net investment income		(0.49	)		(0.99	)		(1.02	)		(0.91	)
Return of capital		—			(0.02	)		(0.09	)		(0.09	)
Total distributions		(0.49	)		(1.01	)		(1.11	)		(1.00	)
Net asset value at end of period	$	14.41		$	14.28		$	13.01		$	12.25
Share price at end of period***	$	14.42		$	14.29		$	13.06		$	12.62
NET ASSET VALUE TOTAL RETURN****		4.42	%		18.08	%		17.02	%		(35.04	)%(b)
SHARE PRICE TOTAL RETURN****		4.42	%		17.70	%		13.88	%		(33.14	)%(b)
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	1,417,485		$	1,345,981		$	769,925		$	191,171
Ratio to average net assets of:
Expenses		0.50	%†		0.50	%		0.50	%		0.50	%†
Net investment income		6.80	%†		6.66	%		8.26	%		7.74	%†
Portfolio turnover rate ††		21	%		12	%		34	%		52	%
Undistributed net investment income (loss) included in price of units issued and redeemed**#	$	(0.00	)(c)	$	(0.05	)	$	(0.06	)	$	0.03

*  Commencement of Investment Operations.

**  Based on average shares outstanding.

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

****  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Share price total return is calculated assuming an initial investment made at the share price at the beginning of the period, reinvestment of all dividends and distributions at share price during the period, and sale at the share price on the last day of the period. Total investment 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 orredemptions.

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

(a)  The net asset value total return from Fund Inception (June 3, 2010, first day trading on the exchange) to October 31, 2010 was 15.54%. The share price total return from Fund Inception to October 31, 2010 was 15.27%.

(b)  The net asset value total return from Fund Inception (January 31, 2008, first day trading on the exchange) to October 31, 2008 was (35.65)%. The share price total return from Fund Inception to October 31, 2008 was (34.67)%.

(c)  Amount represents less than $0.005.

See Notes to Financial Statements.

68

Financial Highlights (Continued)

PowerShares VRDO Tax-Free Weekly Portfolio

	Six Months Ended April 30, 2011			Year Ended October 31,						For the Period November 14, 2007* Through
	(Unaudited)			2010			2009			October 31, 2008
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	25.00		$	25.00		$	25.03		$	25.03
Net investment income**		0.06			0.07			0.30			0.84
Net realized and unrealized gain (loss) on investments		—			—			0.09			(0.02	)
Total from investment operations		0.06			0.07			0.39			0.82
Distribution to shareholders from:
Net investment income		(0.06	)		—			(0.02	)		(0.00	)(a)
Tax-exempt income		—			(0.07	)		(0.40	)		(0.82	)
Total distributions		(0.06	)		(0.07	)		(0.42	)		(0.82	)
Net asset value at end of period	$	25.00		$	25.00		$	25.00		$	25.03
Share price at end of period***	$	25.00		$	25.00		$	25.00		$	25.05
NET ASSET VALUE TOTAL RETURN****		0.24	%		0.31	%		1.58	%		3.33	%(b)
SHARE PRICE TOTAL RETURN****		0.24	%		0.31	%		1.49	%		3.40	%(b)
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	441,243		$	637,413		$	1,069,879		$	142,670
Ratio to average net assets of:
Expenses		0.25	%†		0.25	%		0.25	%		0.25	%†
Net investment income		0.51	%†		0.29	%		1.24	%		3.71	%†
Undistributed net investment income (loss) included in price of units issued and redeemed**#	$	0.01		$	0.01		$	(0.04	)	$	(0.05	)

*  Commencement of Investment Operations.

**  Based on average shares outstanding.

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

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

†  Annualized.

#  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 (November 15, 2007, first day trading on the exchange) to October 31, 2008 was 3.33%. The share price total return from Fund Inception to October 31, 2008 was 3.40%.

See Notes to Financial Statements.

69

Notes to Financial Statements

PowerShares Exchange-Traded Fund Trust II

April 30, 2011 (Unaudited)

Note 1. Organization

PowerShares Exchange-Traded Fund Trust II (the "Trust") was organized as a Massachusetts business trust on October 10, 2006 and is authorized to have multiple series of portfolios. The Trust is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the "1940 Act"). As of April 30, 2011, the Trust offered forty-five portfolios. This report includes the following portfolios:

Full Name	Short Name
PowerShares 1-30 Laddered Treasury Portfolio	"1-30 Laddered Treasury Portfolio"
PowerShares Build America Bond Portfolio	"Build America Bond Portfolio"
PowerShares CEF Income Composite Portfolio	"CEF Income Composite Portfolio"
PowerShares Emerging Markets Sovereign Debt Portfolio	"Emerging Markets Sovereign Debt Portfolio"
PowerShares Fundamental High Yield® Corporate Bond Portfolio	"Fundamental High Yield® Corporate Bond Portfolio"
PowerShares Insured California Municipal Bond Portfolio	"Insured California Municipal Bond Portfolio"
PowerShares Insured National Municipal Bond Portfolio	"Insured National Municipal Bond Portfolio"
PowerShares Insured New York Municipal Bond Portfolio	"Insured New York Municipal Bond Portfolio"
PowerShares International Corporate Bond Porfolio	"International Corporate Bond Portfolio"
PowerShares Preferred Portfolio	"Preferred Portfolio"
PowerShares VRDO Tax-Free Weekly Portfolio	"VRDO Tax-Free Weekly 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 of 1-30 Laddered Treasury Portfolio, CEF Income Composite Portfolio, Emerging Markets Sovereign Debt Portfolio, Fundamental High Yield^® Corporate Bond Portfolio and Preferred Portfolio are issued and redeemed generally in-kind for securities included in the relevant index. Creation Units of the Build America Bond Portfolio, Insured California Municipal Bond Portfolio, Insured National Municipal Bond Portfolio, Insured New York Municipal Bond Portfolio, International Corporate Bond Portfolio and VRDO Tax-Free Weekly Portfolio generally are issued and redeemed principally for cash. Except when aggregated in Creation Units by Authorized Participants, the Shares are not individually redeemable securities of the Funds.

70

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust II

April 30, 2011 (Unaudited)

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

Fund	Index
1-30 Laddered Treasury Portfolio	Ryan/Mergent 1-30 Year Treasury Laddered Index
Build America Bond Portfolio	The BofA Merrill Lynch Build America Bond Index
CEF Income Composite Portfolio	S-Network Composite Closed-End Fund IndexSM
Emerging Markets Sovereign Debt Portfolio	DB Emerging Market USD Liquid Balanced Index
Fundamental High Yield® Corporate Bond Portfolio	RAFI® High Yield Bond Index
Insured California Municipal Bond Portfolio	The BofA Merrill Lynch California Insured Long-Term Core Plus Municipal Securities Index
Insured National Municipal Bond Portfolio	The BofA Merrill Lynch National Insured Long-Term Core Plus Municipal Securities Index
Insured New York Municipal Bond Portfolio	The BofA Merrill Lynch New York Insured Long-Term Core Plus Municipal Securities Index
International Corporate Bond Portfolio	The S&P International Corporate Bond Index®
Preferred Portfolio	The BofA Merrill Lynch Core Fixed Rate Preferred Securities Index
VRDO Tax-Free Weekly Portfolio	Bloomberg US Municipal AMT-Free Weekly VRDO Index

Note 2. Significant Accounting Policies

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

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

71

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust II

April 30, 2011 (Unaudited)

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. Securities with a demand feature exercisable within one to seven days are valued at par. 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.

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

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

B. Other Risks

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

72

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust II

April 30, 2011 (Unaudited)

Cash Transaction Risk. Unlike most exchange-traded funds ("ETFs"), the Build America Bond Portfolio, Insured California Municipal Bond Portfolio, Insured National Municipal Bond Portfolio, Insured New York Municipal Bond Portfolio, International Corporate Bond Portfolio and VRDO Tax-Free Weekly Portfolio currently effect creations and redemptions primarily for cash, rather than primarily in-kind because of the nature of the Funds' investments. As such, investments in such Funds' Shares may be less tax efficient than investments in conventional ETFs.

With respect to each of the Build America Bond Portfolio, CEF Income Composite Portfolio, Fundamental High Yield^® Corporate Bond Portfolio, Insured California Municipal Bond Portfolio, Insured National Municipal Bond Portfolio, Insured New York Municipal Bond Portfolio, International Corporate Bond Portfolio, Preferred Portfolio and VRDO Tax-Free Weekly Portfolio, each Fund's use of a representative sampling approach will result in the Fund holding a smaller number of securities than are in its respective Underlying Index. As a result, an adverse development respecting an issuer of securities held by the Funds could result in a greater decline in NAV than would be the case if the Funds held all of the securities in their respective Underlying Indices. To the extent the assets in the Funds are smaller, these risks will be greater.

Non-Diversified Fund Risk. Each Fund (except for Fundamental High Yield^® Corporate Bond Portfolio, Insured National Municipal Bond Portfolio and VRDO Tax-Free Weekly Portfolio) is considered non-diversified and can invest a greater portion of their assets in securities of individual issuers than a diversified fund. As a result, changes in the market value of a single investment could cause greater fluctuations in Share price than would occur in a diversified fund.

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

Non-Correlation Risk. Each Fund's return may not match the return of its Underlying Index for a number of reasons. For example, each Fund incurs operating expenses not applicable to 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.

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

Geographic Risk. Insured California Municipal Bond Portfolio and Insured New York Municipal Bond Portfolio are less diversified across geographic regions, which may subject the Funds to increased risks related to these regions. The economies and financial markets of certain regions can be interdependent and may all decline at the same time.

Small and Medium Capitalization Company Risk. With respect to Preferred Portfolio, investing in securities of small and medium capitalization companies involves greater risk than is customarily associated with investing

73

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust II

April 30, 2011 (Unaudited)

in larger, more established companies. These companies' securities may be more volatile and less liquid than those of more established companies. These securities may have returns that vary, sometimes significantly, from the overall securities market. Often small and medium capitalization companies and the industries in which they are focused are still evolving and may make them be more sensitive to changing market conditions.

Restricted Securities Risk. With respect to Build America Bond Portfolio and Fundamental High Yield^® Corporate Bond Portfolio, limitations on the resale of private placements or restricted securities may have an adverse effect on their marketability, and may prevent a Fund from disposing of them promptly at reasonable prices. A Fund may have to bear the expense of registering the securities for resale and the risk of substantial delays in effecting the registration.

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

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

Liquidity Risk. Liquidity risk exists when a particular investment is difficult to purchase or sell. If a Fund invests in illiquid securities or current portfolio securities become illiquid, it may reduce the returns of the Fund because the Fund may be unable to sell the illiquid securities at an advantageous time or price.

Municipal Securities Risk. With respect to Build America Bond Portfolio, Insured California Municipal Bond Portfolio, Insured National Municipal Bond Portfolio, Insured New York Municipal Bond Portfolio and VRDO Tax-Free Weekly Portfolio, municipal securities are subject to the risk that litigation, legislation or other political events, local business or economic conditions or the bankruptcy of the issuer could have a significant effect on an issuer's ability to make payments of principal and/or interest. Municipal securities can be significantly affected by political changes as well as uncertainties in the municipal market related to taxation, legislative changes or the rights of municipal security holders. Because many securities are issued to finance similar projects, especially those relating to education, health care, transportation and utilities, conditions in those sectors can affect the overall municipal market. In addition, changes in the financial condition of an individual municipal insurer can affect the overall municipal market. Because certain Funds invest a substantial portion of their assets in state specific municipal securities, such Funds will have greater exposure to negative political, economic and statutory factors within that state than a fund that invests in a broader base of securities.

74

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust II

April 30, 2011 (Unaudited)

Investments in Closed-End Investment Companies. With respect to CEF Income Composite Portfolio, the shares of closed-end investment companies may trade at a discount or premium to, or at, their net asset value ("NAV").

The securities of closed-end investment companies in which the Fund may invest may be leveraged. As a result, the Fund may be indirectly exposed to leverage through an investment in such securities. An investment in securities of closed-end investment companies that use leverage may expose the Fund to higher volatility in the market value of such securities and the possibility that the Fund's long-term returns on such securities (and, indirectly, the long-term returns of the Shares) will be diminished.

The Fund will be subject to provisions of the Investment Company Act of 1940, as amended (the "1940 Act"), that limit the amount the Fund can invest in any one closed-end investment company to 3% of the closed-end investment company's total outstanding stock. As a result, the Fund may hold a smaller position in an closed-end investment company than if it were not subject to this restriction. To comply with provisions of the 1940 Act, on any matter upon which the closed-end investment company shareholders are solicited to vote the Adviser will vote closed-end investment company shares in the same general proportion as shares held by other shareholders of the closed-end investment company.

Risk of Limited Issuance. With respect to Build America Bond Portfolio, there can be no assurance that Build America Bonds will actually be traded. Furthermore, the ability of municipalities to issue Build America Bonds expired on December 31, 2010. As a result, the number of Build America Bonds available in the market is limited, which may negatively affect the value of the Build America Bonds.

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

Global Bonds Risk. With respect to Emerging Markets Sovereign Debt Portfolio and International Corporate Bond Portfolio, global bonds are subject to the same risks as other debt issues, notably credit risk, market risk, interest rate risk and liquidity risk. Generally, 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.

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

75

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust II

April 30, 2011 (Unaudited)

in-kind transactions, losses deferred due to wash sales, and passive foreign investment company investments.

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

D. Investment Income and Investment Transactions

Dividend income is recorded on the ex-dividend date, net of foreign taxes withheld, if any. Interest income, including accretion of discount and amortization of premium, 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

Each Fund 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 Funds, including the cost of transfer agency, custody, fund administration, legal, audit and other services, except for distribution fees, if any, brokerage expenses, taxes, interest, litigation expenses, expenses of the investment companies that are paid indirectly as a result of share ownership of the investment companies in which CEF Income Composite Portfolio and Build America Bond Portfolio invest, and other extraordinary expenses.

Expenses included for CEF Income Composite Portfolio and Build America Bond Portfolio in the accompanying financial statements reflect the expenses of each Fund and do not include any expenses of the investment companies in which the Funds invest. The effects of the investment companies' expenses are included in the realized and unrealized gain/loss on the investments in the investment companies.

F. Dividends and Distributions to Shareholders

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

G. Equalization

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

76

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust II

April 30, 2011 (Unaudited)

H. Foreign Currency Transactions

The accounting records of the Funds are maintained in U.S. dollars. Foreign currencies, as well as investment securities and other assets and liabilities denominated in currencies other than the U.S. dollar are translataed into U.S. dollars using the applicable exchange rates as of the close of London world markets. The effects of changes in foreign currency exchange rates on investments in securities are not segregated in the Statements of Operations from the effects of changes in market prices of those securities, but are included with the net realized and unrealized gain or loss on investments in securities. Certain foreign exchange gains and losses included in realized and unrealized gains or losses are included in or are a reduction of ordinary income in accordance with U.S. Federal income tax regulations.

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. As compensation for its services, each Fund has agreed to pay the Adviser an annual unitary management fee. The Adviser has agreed to pay for substantially all expenses of the Funds, including the cost of transfer agency, custody, fund administration, legal, audit and other services, except for distribution fees, if any, brokerage expenses, taxes, interest, litigation expenses, expenses of the investment companies that are paid indirectly as a result of share ownership of the investment companies in which CEF Income Composite Portfolio and Build America Bond Portfolio invest and other extraordinary expenses. The unitary management fee is paid by each Fund to the Adviser at the following annual rates:

	% of Average Daily Net Assets
1-30 Laddered Treasury Portfolio		0.25	%
Build America Bond Portfolio		0.35	%*
CEF Income Composite Portfolio		0.50	%
Emerging Markets Sovereign Debt Portfolio		0.50	%
Fundamental High Yield® Corporate Bond Portfolio		0.50	%
Insured California Municipal Bond Portfolio		0.35	%*
Insured National Municipal Bond Portfolio		0.35	%*
Insured New York Municipal Bond Portfolio		0.35	%*
International Corporate Bond Portfolio		0.50	%
Preferred Portfolio		0.50	%
VRDO Tax-Free Weekly Portfolio		0.25	%

* The Adviser has agreed to waive a portion of its unitary management fee until April 20, 2012. After giving effect to such waiver, the Fund's net unitary management fee is 0.28% of its average daily net assets. The fee waiver may be modified or terminated by the Adviser at its discretion after April 20, 2012.

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

77

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust II

April 30, 2011 (Unaudited)

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

Fund	Licensor
1-30 Laddered Treasury Portfolio	Mergent, Inc.
Build America Bond Portfolio	Merrill Lynch, Pierce, Fenner & Smith Inc.
CEF Income Composite Portfolio	S-Network Global Indexes LLC
Emerging Markets Sovereign Debt Portfolio	Deutsche Bank Securities, Inc.
Fundamental High Yield® Corporate Bond Portfolio	Research Affiliates, LLC
Insured California Municipal Bond Portfolio	Merrill Lynch, Pierce, Fenner & Smith Inc.
Insured National Municipal Bond Portfolio	Merrill Lynch, Pierce, Fenner & Smith Inc.
Insured New York Municipal Bond Portfolio	Merrill Lynch, Pierce, Fenner & Smith Inc.
International Corporate Bond Portfolio	Standard & Poor's®
Preferred Portfolio	Merrill Lynch, Pierce, Fenner & Smith Inc.
VRDO Tax-Free Weekly Portfolio	Bloomberg Finance L.P.

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 each Fund may track its respective Index.

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 Van Kampen Bond Fund is considered to be affiliated with the Fund. The table below shows the transactions in and earnings from the investment in Invesco Van Kampen Bond Fund for the six-month period ended April 30, 2011.

CEF Income Composite Portfolio

	Value 10/31/10		Purchases at Cost		Proceeds from Sales			Change in Unrealized Appreciation (Depreciation)			Realized Gain (Loss)			Value 04/30/11		Dividend Income
Invesco Van Kampen Bond Fund	$	534,633	$	340,796	$	(29,452	)	$	(48,795	)	$	(7	)	$	797,175	$	7,398

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

78

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust II

April 30, 2011 (Unaudited)

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

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

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

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

Except for the Funds listed below, as of April 30, 2011, the securities in each Fund were valued based on Level 2 inputs. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

With respect to each Fund, during the six-month period ended April 30, 2011, there were no significant transfers between investment levels.

	Investment in Securities
	Level 1		Level 2		Level 3		Total
PowerShares Emerging Markets Sovereign Debt Portfolio
Foreign Government Debt Securities	$	—	$	974,096,201	$	—	$	974,096,201
Money Market Fund		2,767,483		—		—		2,767,483
Total Investments		2,767,483		974,096,201		—		976,863,684
PowerShares Fundamental High Yield® Corporate Bond Portfolio
Corporate Debt Securities		—		462,078,645		—		462,078,645
Money Market Fund		1,930,214		—		—		1,930,214
Total Investments		1,930,214		462,078,645		—		464,008,859
PowerShares Preferred Portfolio
Equity Securities		1,397,677,590		23,719,316		—		1,421,396,906
Money Market Fund		22,809,778		—		—		22,809,778
Total Investments		1,420,487,368		23,719,316		—		1,444,206,684

79

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust II

April 30, 2011 (Unaudited)

Note 6. Tax Information

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from GAAP. Reclassifications are made to the Fund's capital accounts to reflect income and gains available for distributions (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund's fiscal year-end.

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

The following Funds had capital loss carryforward amounts as of October 31, 2010, which expire on October 31 of each year listed below:

	2016		2017		2018		Total*
1-30 Laddered Treasury Portfolio	$	831	$	15,382	$	—	$	16,213
Build America Bond Portfolio		—		—		115,364		115,364
CEF Income Composite Portfolio		—		—		136,143		136,143
Emerging Markets Sovereign Debt Portfolio		531,185		558,313		212,582		1,302,080
Fundamental High Yield® Corporate Bond Portfolio		—		728,021		—		728,021
Insured California Municipal Bond Portfolio		—		—		5,341		5,341
Insured National Municipal Bond Portfolio		1,468,907		182,883		—		1,651,790
Insured New York Municipal Bond Portfolio		136,120		125,849		—		261,969
International Corporate Bond Portfolio		—		—		988		988
Preferred Portfolio		18,233,466		48,298,467		—		66,531,933
VRDO Tax-Free Weekly Portfolio		—		—		—		—

* 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 six-month period ended April 30, 2011, the cost of securities purchased and proceeds from sales of securities, excluding short-term securities, U.S. Government securities, money market funds and in-kind transactions, were as follows:

	Purchases		Sales
Build America Bond Portfolio	$	127,452,662	$	18,149,480
CEF Income Composite Portfolio		33,885,986		31,618,551
Emerging Markets Sovereign Debt Portfolio		52,620,550		45,766,625
Fundamental High Yield® Corporate Bond Portfolio		83,893,439		80,465,433
Insured California Municipal Bond Portfolio		7,646,314		11,602,655
Insured National Municipal Bond Portfolio		24,901,803		153,202,723
Insured New York Municipal Bond Portfolio		9,734,015		11,337,879
International Corporate Bond Portfolio		15,442,021		3,878,562
Preferred Portfolio		363,651,624		281,984,011
VRDO Tax-Free Weekly Portfolio		—		—

80

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust II

April 30, 2011 (Unaudited)

For the six-month period ended April 30, 2011, the cost of securities purchased and the proceeds from sales of U.S. government securities, excluding short-term securities, money market funds and in-kind transactions, for the 1-30 Laddered Treasury Portfolio amounted to $15,029,793 and $7,157,727, respectively.

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

	Securities Received		Securities Delivered
1-30 Laddered Treasury Portfolio	$	224,441,321	$	12,103,425
Build America Bond Portfolio		4,327,240		—
CEF Income Composite Portfolio		56,809,905		17,545,751
Emerging Markets Sovereign Debt Portfolio		254,505,972		218,570,530
Fundamental High Yield® Corporate Bond Portfolio		128,643,662		58,068,339
Insured California Municipal Bond Portfolio		—		—
Insured National Municipal Bond Portfolio		—		—
Insured New York Municipal Bond Portfolio		—		—
International Corporate Bond Portfolio		2,622,650		—
Preferred Portfolio		41,227,555		51,081,232
VRDO Tax-Free Weekly Portfolio		—		—

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

At April 30, 2011, cost of investments on a tax basis includes adjustments for financial reporting purposes, as of the most recently completed Federal income tax reporting period-end.

	Cost		Net Unrealized Appreciation (Depreciation)			Gross Unrealized Appreciation		Gross Unrealized (Depreciation)
1-30 Laddered Treasury Portfolio	$	290,126,157	$	(7,538,838	)	$	206,285	$	(7,745,123	)
Build America Bond Portfolio		653,606,280		15,646,207			20,411,518		(4,765,311	)
CEF Income Composite Portfolio		203,065,884		6,223,026			8,961,317		(2,738,291	)
Emerging Markets Sovereign Debt Portfolio		960,046,101		16,817,583			25,706,426		(8,888,843	)
Fundamental High Yield® Corporate Bond Portfolio		448,216,892		15,791,967			16,220,482		(428,515	)
Insured California Municipal Bond Portfolio		36,022,876		(1,077,839	)		313,814		(1,391,653	)
Insured National Municipal Bond Portfolio		475,765,881		(1,598,472	)		8,257,542		(9,856,014	)
Insured New York Municipal Bond Portfolio		36,973,599		(5,631	)		763,316		(768,947	)
International Corporate Bond Portfolio		45,578,347		2,729,731			2,817,952		(88,221	)
Preferred Portfolio		1,289,612,676		154,594,008			159,655,600		(5,061,592	)
VRDO Tax-Free Weekly Portfolio		430,380,000		—			—		—

81

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust II

April 30, 2011 (Unaudited)

Note 8. Trustees' Fees

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

The Trust has adopted a deferred compensation plan (the "Plan"). Under the Plan, an Independent Trustee who has executed a Deferred Fee Agreement (a "Participating Trustee") may defer receipt of all or a portion of his compensation ("Deferral Fees"). Such Deferral Fees are deemed to be invested in select PowerShares Funds. The Deferral Fees payable to the Participating Trustee are valued as of the date such Deferral Fees would have been paid to the Participating Trustee. The value increases with contributions or with increases in the value of the Shares selected, and the value decreases with distributions or with declines in the value of the Shares selected.

Note 9. Capital

Shares are created and redeemed by the Trust only in Creation Unit size aggregations of 50,000 Shares (100,000 Shares for Emerging Markets Sovereign Debt Portfolio and Fundamental High Yield^® Corporate Bond Portfolio). Only Authorized Participants are permitted to purchase or redeem Creation Units from the Funds. 1-30 Laddered Treasury Portfolio, CEF Income Composite Portfolio, Emerging Markets Sovereign Debt Portfolio, Fundamental High Yield^® Corporate Bond Portfolio and Preferred Portfolio 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. For Build America Bond Portfolio, Insured California Municipal Bond Portfolio, Insured National Municipal Bond Portfolio, Insured New York Municipal Bond Portfolio, International Corporate Bond Portfolio and VRDO Tax-Free Weekly Portfolio, such transactions are principally for cash.

Note 10. Indemnifications

Under the Trust's organizational documents, its officers and Trustees are indemnified against certain liability 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.

82

Board Considerations Regarding Continuation of Investment Advisory Agreement

At a meeting held on April 14, 2011, the Board of Trustees of the PowerShares Exchange-Traded Fund Trust II (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 40 series (each, a "Fund" and collectively, the "Funds"):

PowerShares 1-30 Laddered Treasury Portfolio

PowerShares Build America Bond Portfolio

PowerShares CEF Income Composite Portfolio

PowerShares DWA Developed Markets Technical Leaders Portfolio

PowerShares DWA Emerging Markets Technical Leaders Portfolio

PowerShares Dynamic Developed International Opportunities Portfolio

PowerShares Emerging Markets Infrastructure Portfolio

PowerShares Emerging Markets Sovereign Debt Portfolio

PowerShares FTSE RAFI Asia Pacific ex-Japan Portfolio

PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio

PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio

PowerShares FTSE RAFI Emerging Markets Portfolio

PowerShares Fundamental High Yield^® Corporate Bond Portfolio

PowerShares Global Agriculture Portfolio

PowerShares Global Clean Energy Portfolio

PowerShares Global Coal Portfolio

PowerShares Global Gold and Precious Metals Portfolio

PowerShares Global Nuclear Energy Portfolio

PowerShares Global Steel Portfolio

PowerShares Global Water Portfolio

PowerShares Global Wind Energy Portfolio

PowerShares Ibbotson Alternative Completion Portfolio

PowerShares Insured California Municipal Bond Portfolio

PowerShares Insured National Municipal Bond Portfolio

PowerShares Insured New York Municipal Bond Portfolio

PowerShares International Corporate Bond Portfolio

PowerShares MENA Frontier Countries Portfolio

PowerShares Preferred Portfolio

PowerShares RiverFront Tactical Balanced Growth Portfolio

PowerShares RiverFront Tactical Growth & Income Portfolio

PowerShares S&P SmallCap Consumer Discretionary Portfolio

PowerShares S&P SmallCap Consumer Staples Portfolio

PowerShares S&P SmallCap Energy Portfolio

PowerShares S&P SmallCap Financials Portfolio

PowerShares S&P SmallCap Health Care Portfolio

PowerShares S&P SmallCap Industrials Portfolio

PowerShares S&P SmallCap Information Technology Portfolio

PowerShares S&P SmallCap Materials Portfolio

PowerShares S&P SmallCap Utilities Portfolio

PowerShares VRDO Tax-Free Weekly 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,

83

Board Considerations Regarding Continuation of Investment Advisory Agreement (Continued)

determined to approve the continuation of the Investment Advisory Agreement for each Fund. No single factor was determinative in the Board's analysis.

Nature, Extent and Quality of Services. In evaluating the nature, extent and quality of the Adviser's services, the Trustees reviewed information concerning the functions performed by the Adviser for the Funds, information describing the Adviser's current organization and projected staffing, including operations assistance provided by the Adviser's parent organization, Invesco Ltd., and the background and experience of the persons responsible for the day-to-day management of the Funds. The Trustees reviewed matters related to the Adviser's execution of portfolio transactions on behalf of the Funds. The Trustees also reviewed information on the performance of the Funds and the performance of their underlying indices through December 31, 2010, including reports on the correlation and tracking error between the underlying index and each Fund's performance, as well as the Adviser's analysis of the tracking error between each Fund and its underlying index. The Trustees noted that the correlation for each Fund, other than PowerShares VRDO Tax-Free Weekly Portfolio, was within the targeted range set forth in the Trust's registration statement and the tracking error for each Fund was within the targeted range set forth in the Trust's registration statement. The Trustees reviewed the reasons for PowerShares VRDO Tax-Free Weekly Portfolio's level of correlation to its underlying index, including the Adviser's representation that a primary cause is the abnormally low yield environment and its expectation that, over time, the Fund's correlation will return to within the targeted range set forth in the Trust's registration statement. The Trustees concluded that each Fund's correlation to its underlying index and the tracking error for each Fund were 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 total expense ratio and unitary advisory fee, as compared to information compiled by the Adviser from Lipper Inc. databases on the expense ratios of comparable exchange-traded funds ("ETFs"), open-end (non-ETF) index funds and open-end actively-managed funds. The Trustees noted that the annual advisory fee charged to each Fund, as set forth below, is a unitary fee and that the Adviser pays all other operating expenses of each Fund, except that each Fund pays its brokerage expenses, taxes, interest and extraordinary expenses.

0.25%:  PowerShares 1-30 Laddered Treasury Portfolio, PowerShares Ibbotson Alternative Completion Portfolio, PowerShares RiverFront Tactical Balanced Growth Portfolio, PowerShares RiverFront Tactical Growth & Income Portfolio, PowerShares VRDO Tax-Free Weekly Portfolio

0.29%:  PowerShares S&P SmallCap Consumer Discretionary Portfolio, PowerShares S&P SmallCap Consumer Staples Portfolio, PowerShares S&P SmallCap Energy Portfolio, PowerShares S&P SmallCap Financials Portfolio, PowerShares S&P SmallCap Health Care Portfolio, PowerShares S&P SmallCap Industrials Portfolio, PowerShares S&P SmallCap Information Technology

84

Board Considerations Regarding Continuation of Investment Advisory Agreement (Continued)

Portfolio, PowerShares S&P SmallCap Materials Portfolio, PowerShares S&P SmallCap Utilities Portfolio

0.35%:  PowerShares Build America Bond Portfolio, PowerShares Insured California Municipal Bond Portfolio, PowerShares Insured National Municipal Bond Portfolio, PowerShares Insured New York Municipal Bond Portfolio

0.50%:  PowerShares CEF Income Composite Portfolio, PowerShares Emerging Markets Sovereign Debt Portfolio, PowerShares Fundamental High Yield^® Corporate Bond Portfolio, PowerShares International Corporate Bond Portfolio, PowerShares Preferred Portfolio

0.75%:  PowerShares Dynamic Developed International Opportunities Portfolio, PowerShares Emerging Markets Infrastructure Portfolio, PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio, PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio, PowerShares Global Agriculture Portfolio, PowerShares Global Clean Energy Portfolio, PowerShares Global Coal Portfolio, PowerShares Global Gold and Precious Metals Portfolio, PowerShares Global Nuclear Energy Portfolio, PowerShares Global Steel Portfolio, PowerShares Global Water Portfolio, PowerShares Global Wind Energy Portfolio

0.80%:  PowerShares DWA Developed Markets Technical Leaders Portfolio, PowerShares FTSE RAFI Asia Pacific ex-Japan Small-Mid Portfolio

0.85%:  PowerShares FTSE RAFI Emerging Markets Portfolio

0.90%:  PowerShares DWA Emerging Markets Technical Leaders Portfolio

0.95%:  PowerShares MENA Frontier Countries Portfolio

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 each Fund's advisory fee was:

•  higher than the median expense ratio of its ETF peer funds (except for the advisory fee of each of PowerShares DWA Developed Markets Technical Leaders Portfolio, PowerShares Emerging Markets Sovereign Debt Portfolio, PowerShares Fundamental High Yield^® Corporate Bond Portfolio, PowerShares Global Agriculture Portfolio, PowerShares Ibbotson Alternative Completion Portfolio, PowerShares S&P SmallCap Consumer Discretionary Portfolio, PowerShares S&P SmallCap Consumer Staples Portfolio, PowerShares S&P SmallCap Energy Portfolio, PowerShares S&P SmallCap Financials Portfolio, PowerShares S&P SmallCap Health Care Portfolio, PowerShares S&P SmallCap Industrials Portfolio, PowerShares S&P SmallCap Information Technology Portfolio, PowerShares S&P SmallCap Materials Portfolio and PowerShares S&P SmallCap Utilities Portfolio, which was equal to or lower 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 advisory fee of each of PowerShares CEF Income Composite Portfolio, PowerShares DWA Developed Markets Technical Leaders Portfolio, PowerShares Global Agriculture Portfolio, PowerShares Global Clean Energy Portfolio, PowerShares Global Coal Portfolio, PowerShares Global Gold and Precious Metals

85

Board Considerations Regarding Continuation of Investment Advisory Agreement (Continued)

Portfolio, PowerShares Global Nuclear Energy Portfolio, PowerShares Global Steel Portfolio, PowerShares Global Water Portfolio, PowerShares Global Wind Energy Portfolio, PowerShares Ibbotson Alternative Completion Portfolio, PowerShares RiverFront Tactical Balanced Growth Portfolio, PowerShares RiverFront Tactical Growth & Income Portfolio, PowerShares S&P SmallCap Consumer Discretionary Portfolio, PowerShares S&P SmallCap Consumer Staples Portfolio, PowerShares S&P SmallCap Financials Portfolio, PowerShares S&P SmallCap Health Care Portfolio, PowerShares S&P SmallCap Industrials Portfolio, PowerShares S&P SmallCap Information Technology Portfolio, PowerShares S&P SmallCap Materials Portfolio and PowerShares S&P SmallCap Utilities Portfolio, which was lower than the median expense ratio of its open-end index peer funds; and there was no comparable open-end index peer fund information available for PowerShares Dynamic Developed International Opportunities Portfolio, PowerShares Emerging Markets Sovereign Debt Portfolio, PowerShares FTSE RAFI Asia Pacific ex-Japan Portfolio, PowerShares Fundamental High Yield^® Corporate Bond Portfolio, PowerShares Insured California Municipal Bond Portfolio, PowerShares Insured National Municipal Bond Portfolio, PowerShares Insured New York Municipal Bond Portfolio, PowerShares International Corporate Bond Portfolio or PowerShares VRDO Tax-Free Weekly Portfolio); but

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

The Trustees considered that the Adviser had agreed to waive a portion of its advisory fee, at least until April 20, 2012, for PowerShares Build America Bond Portfolio, PowerShares Insured California Municipal Bond Portfolio, PowerShares Insured National Municipal Bond Portfolio, PowerShares Insured New York Municipal Bond Portfolio and PowerShares MENA Frontier Countries Portfolio. 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.

Economies of Scale and Whether Fee Levels Reflect These Economies of Scale. The Trustees reviewed the information provided by the Adviser as to the extent to which economies of scale are realized as each Fund grows and whether fee levels reflect economies of scale for the benefit of shareholders. The Trustees reviewed each Fund's asset size and expense ratio. The Trustees noted that any reduction in fixed costs associated with the management of the Funds would be enjoyed by the Adviser, but a unitary fee provides certainty in expenses for the Funds. The Trustees considered whether the advisory fee rate for each Fund was reasonable in relation to the asset size of that Fund, and concluded that the flat advisory fee was reasonable and appropriate.

86

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.

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.

87

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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) 983-0903. This information is also available on the Securities and Exchange Commission's ("Commission") website at www.sec.gov.

Information regarding how the Funds voted proxies for portfolio securities, if applicable, during the most recent 12-month period ended June 30, is also available, without charge and upon request, by (i) calling (800) 983-0903; or (ii) accessing the Trust's Form N-PX on the Commission's website at www.sec.gov.

QUARTERLY PORTFOLIOS

The Funds file their complete schedules of portfolio holdings with the Commission for the first and third quarters of each fiscal year on Form N-Q. The Trust's Form N-Qs are available on the Commission's website at www.sec.gov. The Trust's 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

© 2011 Invesco PowerShares Capital Management LLC  P-PS-SAR-9

2011 Semi-Annual Report to Shareholders

April 30, 2011

PowerShares Ibbotson Alternative Completion Portfolio (PTO)

PowerShares RiverFront Tactical Balanced Growth Portfolio (PAO)

PowerShares RiverFront Tactical Growth & Income Portfolio (PCA)

Table of Contents

Frequency Distribution of Discounts & Premiums	2
Fees and Expenses	4
Asset Allocation Portfolios
Schedules of Investments
PowerShares Ibbotson Alternative Completion Portfolio (PTO)	5
PowerShares RiverFront Tactical Balanced Growth Portfolio (PAO)	6
PowerShares RiverFront Tactical Growth & Income Portfolio (PCA)	8
Statements of Assets and Liabilities	10
Statements of Operations	11
Statements of Changes in Net Assets	12
Financial Highlights	14
Notes to Financial Statements	16
Board Considerations Regarding Continuation of Investment Advisory Agreement	27

Frequency Distribution of Discounts & Premiums

Since Inception through April 30, 2011

					Closing Price Above NAV (bps)
Ticker	Fund Name	Inception	Trading Days		0-24		25-49		50-99		100-149		150-199		200+
PTO	PowerShares Ibbotson Alternative Completion Portfolio	5/20/08		743		145		81		77		40		17		43
PAO	PowerShares RiverFront Tactical Balanced Growth Portfolio	5/20/08		743		237		60		51		27		13		37
PCA	PowerShares RiverFront Tactical Growth & Income Portfolio	5/20/08		743		130		54		68		47		32		150

2

	Closing Price Below NAV (bps)
Ticker	-0-24		-25-49		-50-99		-100-149		-150-199		-200+
PTO		187		71		51		13		7		11
PAO		221		32		30		18		4		13
PCA		119		35		50		31		11		16

3

Fees and Expenses

As a shareholder of a Fund of the PowerShares Exchange-Traded Fund Trust II, you incur a unitary management fee. The expense examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other funds.

The example is based on an investment of $1,000 invested at the beginning of the period and held through the six-month period ended April 30, 2011.

In addition to the fees and expenses which each Fund bears directly, each Fund indirectly bears a pro rata share of the fees and expenses of the underlying exchange-traded funds ("ETF's") in which your Fund invests. The amount of fees and expenses incurred indirectly by your Fund will vary because the underlying ETFs have varied expenses and fee levels and each Fund may own different proportions of the underlying ETFs at different times. Estimated underlying ETF expenses are not expenses that are incurred directly by your Fund. They are expenses that are incurred directly by the underlying ETFs and are deducted from the value of the funds your Fund invests in. The effect of the estimated underlying ETFs expenses that you bear indirectly are included in your Fund's total return.

Actual Expenses

The first line in the following table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading "Expenses Paid During Period" to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line in the following table provides information about hypothetical account values and hypothetical expenses based on each Fund's actual expense ratio and an assumed annualized rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only, and do not reflect any transactional costs such as sales charges and brokerage commissions. Therefore the second line in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

	Beginning Account Value November 1, 2010		Ending Account Value April 30, 2011		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During the Six-Month Period(1)
PowerShares Ibbotson Alternative Completion Portfolio Actual	$	1,000.00	$	1,082.28		0.25	%	$	1.29
Hypothetical (5% return before expenses)	$	1,000.00	$	1,023.55		0.25	%	$	1.25
PowerShares RiverFront Tactical Balanced Growth Portfolio Actual	$	1,000.00	$	1,129.58		0.25	%	$	1.32
Hypothetical (5% return before expenses)	$	1,000.00	$	1,023.55		0.25	%	$	1.25
PowerShares RiverFront TacticalActual	$	1,000.00	$	1,093.41		0.25	%	$	1.30
Hypothetical (5% return before expenses)	$	1,000.00	$	1,023.55		0.25	%	$	1.25

(1)  Expenses are calculated using the annualized expense ratio, which represents the ongoing expenses as a percentage of net assets for the six months ended April 30, 2011. Expenses are calculated by multiplying the Fund's annualized expense ratio by the average account value for the period; then multiplying the result by 181 and then dividing the result by 365.

4

Portfolio Composition

PowerShares Ibbotson Alternative Completion Portfolio

Asset Class Breakdown (% of the Fund's Net Assets) as of April 30, 2011 (Unaudited)

International Equity Funds	33.4
Fixed Income Funds	32.2
Commodity Funds	22.4
Currency Fund	8.1
Domestic Equity Funds	3.9
Money Market Fund	0.0
Liabilities in excess of other assets	(0.0	)

Schedule of Investments

PowerShares Ibbotson Alternative Completion Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Exchange-Traded Funds—100.0%
		Commodity Funds—22.4%
	15,825	PowerShares DB Agriculture Fund(/)*	$	539,000
	14,556	PowerShares DB Base Metals Fund(/)*		350,654
	23,071	PowerShares DB Energy Fund(/)*		771,725
	6,612	PowerShares DB Precious Metals Fund(/)*		408,291
				2,069,670
		Currency Fund—8.1%
	29,795	PowerShares DB G10 Currency Harvest Fund(/)*		748,152
		Domestic Equity Funds—3.9%
	16,965	PowerShares S&P 500 BuyWrite Portfolio(=)		364,069
		Fixed Income Funds—32.2%
	3,265	iShares Barclays TIPS Bond Fund		362,937
	6,592	PIMCO Broad U.S. TIPS Index Fund		361,558
	40,549	PowerShares Emerging Markets Sovereign Debt Portfolio(=)		1,083,064
	56,014	PowerShares Preferred Portfolio(=)		808,842
	6,605	SPDR Barclays Capital TIPS ETF		363,275
				2,979,676
		International Equity Funds—33.4%
	15,325	PowerShares Emerging Markets Infrastructure Portfolio(=)		864,790
	21,648	PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio(=)		563,930
	8,284	PowerShares Global Agriculture Portfolio(=)		278,094
	5,589	PowerShares Global Gold and Precious Metals Portfolio(=)		284,508
	87,265	PowerShares MENA Frontier Countries Portfolio(=)		1,105,648
				3,096,970
		Total Exchange-Traded Funds (Cost $7,951,782)		9,258,537

Number of Shares			Value
		Money Market Fund—0.0%
	1,098	Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $1,098)	$	1,098
		Total Investments (Cost $7,952,880)—100.0%		9,259,635
		Liabilities in excess of other assets—(0.0%)		(199	)
		Net Assets—100.0%	$	9,259,436

Investment Abbreviations:

ETF—Exchange-Traded Fund

TIPS—Treasury Inflation Protected Securities

Notes to Schedule of Investments:

(/)  Not considered to be affiliated.

*  Non-income producing security.

(=)  The Fund and the PowerShares exchange-traded funds have the same investment adviser and therefore, are considered to be affiliated. See Note 4.

See Notes to Financial Statements.

5

Portfolio Composition

PowerShares RiverFront Tactical Balanced Growth Portfolio

Asset Class Breakdown (% of the Fund's Net Assets) as of April 30, 2011 (Unaudited)

Domestic Equity Funds	60.0
International Equity Funds	24.3
Fixed Income Funds	9.6
Currency Funds	6.1
Money Market Fund	0.0
Liabilities in excess of other assets	(0.0	)

Schedule of Investments

PowerShares RiverFront Tactical Balanced Growth Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Exchange-Traded Funds—100.0%
		Currency Funds—6.1%
	33,471	WisdomTree Dreyfus Commodity Currency Fund	$	939,531
	28,258	WisdomTree Dreyfus Emerging Currency Fund		667,171
				1,606,702
		Domestic Equity Funds—60.0%
	21,927	iShares Dow Jones U.S. Energy Sector Index Fund		1,008,861
	20,210	JPMorgan Alerian MLP Index ETN		792,232
	44,519	PowerShares Active Mega-Cap Portfolio(=)		1,241,190
	52,243	PowerShares Dividend AchieversTM Portfolio(=)		798,795
	40,262	PowerShares DWA Technical Leaders Portfolio(=)		1,068,151
	14,154	PowerShares Dynamic Basic Materials Sector Portfolio(=)		576,492
	36,647	PowerShares Dynamic Consumer Discretionary Sector Portfolio(=)		1,009,991
	80,192	PowerShares Dynamic Financial Sector Portfolio(=)		1,638,323
	23,474	PowerShares Dynamic Food & Beverage Portfolio(=)		464,316
	36,030	PowerShares Dynamic Healthcare Sector Portfolio(=)*		1,133,864
	41,885	PowerShares Dynamic Industrials Sector Portfolio(=)		1,359,587
	37,110	PowerShares Dynamic Large Cap Portfolio(=)		980,075
	9,694	PowerShares Dynamic Mid Cap Portfolio(=)		263,275
	17,632	PowerShares Dynamic Oil & Gas Services Portfolio(=)		465,485
	60,093	PowerShares Dynamic Technology Sector Portfolio(=)		1,663,975
	91,267	PowerShares Zacks Micro Cap Portfolio(=)		1,139,925
	3,389	Vanguard Telecommunication Services ETF		237,264
				15,841,801

Number of Shares			Value
		Exchange-Traded Funds (Continued)
		Fixed Income Funds—9.6%
	2,679	iShares iBoxx $ High Yield Corporate Bond Fund	$	248,745
	34,376	PowerShares Fundamental High Yield® Corporate Bond Portfolio(=)		641,456
	15,106	SPDR Barclays Capital High Yield Bond ETF		617,835
	13,313	Vanguard Short-Term Corporate Bond ETF		1,041,077
				2,549,113
		International Equity Funds—24.3%
	22,743	iShares MSCI ACWI ex US Index Fund		1,085,296
	27,069	PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio(=)		1,185,893
	25,273	PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio(=)		658,362
	95,439	PowerShares FTSE RAFI Emerging Markets Portfolio(=)		2,583,534
	40,015	PowerShares International Dividend AchieversTM Portfolio(=)		675,525
	4,360	SPDR S&P Emerging SmallCap ETF		244,770
				6,433,380
		Total Exchange-Traded Funds (Cost $23,942,149)		26,430,996
		Money Market Fund—0.0%
	4,704	Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $4,704)		4,704
		Total Investments (Cost $23,946,853)—100.0%		26,435,700
		Liabilities in excess of other assets—(0.0%)		(10,561	)
		Net Assets—100.0%	$	26,425,139

See Notes to Financial Statements.

6

Schedule of Investments (Continued)

PowerShares RiverFront Tactical Balanced Growth Portfolio

April 30, 2011 (Unaudited)

Investment Abbreviations:

ETF—Exchange-Traded Fund

ETN—Exchange-Traded Note

MLP—Master Limited Partnership

Notes to Schedule of Investments:

(=)  The Fund and the PowerShares exchange-traded funds have the same investment adviser and therefore, are considered to be affiliated. See Note 4.

*  Non-income producing security.

See Notes to Financial Statements.

7

Portfolio Composition

PowerShares RiverFront Tactical Growth & Income Portfolio

Asset Class Breakdown (% of the Fund's Net Assets) as of April 30, 2011 (Unaudited)

Domestic Equity Funds	41.5
Fixed Income Funds	31.1
International Equity Funds	20.1
Currency Funds	6.1
Commodity Funds	1.2
Money Market Fund	0.0
Liabilities in excess of other assets	(0.0	)

Schedule of Investments

PowerShares RiverFront Tactical Growth & Income Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Exchange-Traded Funds—100.0%
		Commodity Funds—1.2%
	4,630	PowerShares DB Precious Metals Fund(/)*	$	285,903
		Currency Funds—6.1%
	31,320	WisdomTree Dreyfus Commodity Currency Fund		879,152
	25,975	WisdomTree Dreyfus Emerging Currency Fund		613,270
				1,492,422
		Domestic Equity Funds—41.5%
	23,458	JPMorgan Alerian MLP Index ETN		919,553
	18,557	PowerShares Active Mega-Cap Portfolio(=)		517,369
	4,795	PowerShares Active U.S. Real Estate Fund(=)		249,110
	142,972	PowerShares Dividend AchieversTM Portfolio(=)		2,186,042
	6,310	PowerShares Dynamic Basic Materials Sector Portfolio(=)		257,006
	22,469	PowerShares Dynamic Consumer Discretionary Sector Portfolio(=)		619,246
	25,219	PowerShares Dynamic Energy Sector Portfolio(=)		1,128,550
	24,060	PowerShares Dynamic Financial Sector Portfolio(=)		491,546
	16,287	PowerShares Dynamic Healthcare Sector Portfolio(=)*		512,552
	27,693	PowerShares Dynamic Industrials Sector Portfolio(=)		898,915
	10,430	PowerShares Dynamic Mid Cap Portfolio(=)		283,263
	35,356	PowerShares Dynamic Technology Sector Portfolio(=)		979,008
	91,689	PowerShares High Yield Equity Dividend AchieversTM Portfolio(=)		831,619
	21,030	PowerShares Zacks Micro Cap Portfolio(=)		262,665
				10,136,444

Number of Shares			Value
		Exchange-Traded Funds (Continued)
		Fixed Income Funds—31.1%
	7,518	iShares iBoxx $ High Yield Corporate Bond Fund	$	698,046
	47,341	PowerShares Active Low Duration Portfolio(=)		1,191,573
	76,847	PowerShares Fundamental High Yield® Corporate Bond Portfolio(=)		1,433,965
	6,393	PowerShares VRDO Tax-Free Weekly Portfolio(=)		159,761
	17,548	SPDR Barclays Capital High Yield Bond ETF		717,713
	43,562	Vanguard Short-Term Corporate Bond ETF		3,406,549
				7,607,607
		International Equity Funds—20.1%
	15,841	iShares MSCI ACWI ex-U.S. Index Fund		755,932
	16,728	PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio(=)		732,854
	9,546	PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio(=)		248,673
	70,688	PowerShares FTSE RAFI Emerging Markets Portfolio(=)		1,913,524
	30,420	PowerShares International Dividend AchieversTM Portfolio(=)		513,544
	4,743	Vanguard FTSE All World ex-US Small-Cap ETF		508,355
	4,311	WisdomTree Emerging Markets SmallCap Dividend Fund		243,658
				4,916,540
		Total Exchange-Traded Funds (Cost $22,333,760)		24,438,916

See Notes to Financial Statements.

8

Schedule of Investments (Continued)

PowerShares RiverFront Tactical Growth & Income Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Money Market Fund—0.0%
	12,427	Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $12,427)	$	12,427
		Total Investments (Cost $22,346,187)—100.0%		24,451,343
		Liabilities in excess of other assets—(0.0%)		(8,288	)
		Net Assets—100.0%	$	24,443,055

Investment Abbreviations:

ETF—Exchange-Traded Fund

ETN—Exchange-Traded Note

MLP—Master Limited Partnership

Notes to Schedule of Investments:

(/)  Not considered to be affiliated.

*  Non-income producing security.

(=)  The Fund and the PowerShares exchange-traded funds have the same investment adviser and therefore, are considered to be affiliated. See Note 4.

See Notes to Financial Statements.

9

Statements of Assets and Liabilities

April 30, 2011 (Unaudited)

	PowerShares Ibbotson Alternative Completion Portfolio			PowerShares RiverFront Tactical Balanced Growth Portfolio			PowerShares RiverFront Tactical Growth & Income Portfolio
ASSETS:
Unaffiliated investments, at value	$	3,906,690		$	6,887,486		$	9,040,558
Affiliated investments, at value (Note 4)		5,352,945			19,548,214			15,410,785
Total investments, at value		9,259,635			26,435,700			24,451,343
Cash		28			1,483			—
Receivables:
Dividends		1,724			1,877			6,142
Investments sold		—			2,000,287			298,288
Shares sold		—			675,421			676,179
Total Assets		9,261,387			29,114,768			25,431,952
LIABILITIES:
Due to foreign custodian		67			—			—
Payable for investments purchased		–			2,684,607			984,263
Accrued unitary management fees		1,875			5,020			4,632
Accrued expenses		9			2			2
Total Liabilities		1,951			2,689,629			988,897
NET ASSETS	$	9,259,436		$	26,425,139		$	24,443,055
NET ASSETS CONSIST OF:
Shares of beneficial interest	$	11,671,640		$	25,520,766		$	23,716,576
Undistributed net investment income		2,664			116,894			133,583
Undistributed net realized gain (loss)		(3,721,618)			(1,701,368	)		(1,512,260	)
Net unrealized appreciation		1,306,750			2,488,847			2,105,156
Net Assets	$	9,259,436		$	26,425,139		$	24,443,055
Shares outstanding (unlimited amount authorized, $0.01 par value)		750,000			1,950,000			1,800,000
Net asset value	$	12.35		$	13.55		$	13.58
Share price	$	12.35		$	13.56		$	13.59
Unaffiliated investments, at cost	$	3,406,930		$	6,511,859		$	8,924,760
Affiliated investments, at cost		4,545,950			17,434,994			13,421,427
Total investments, at cost	$	7,952,880		$	23,946,853		$	22,346,187
Foreign currencies, at cost	$	(62	)	$	—		$	—

See Notes to Financial Statements.

10

Statements of Operations

Six Months Ended April 30, 2011 (Unaudited)

	PowerShares Ibbotson Alternative Completion Portfolio			PowerShares RiverFront Tactical Balanced Growth Portfolio		PowerShares RiverFront Tactical Growth & Income Portfolio
INVESTMENT INCOME:
Unaffiliated dividend income	$	60,515		$	108,207	$	131,485
Affiliated dividend income		84,703			115,241		113,273
Total Income		145,218			223,448		244,758
EXPENSES:
Unitary management fees		11,919			25,206		23,232
Net Investment Income		133,299			198,242		221,526
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain from:
Investments		8,064			717,042		150,974
Distributions from underlying ETF shares		3,746			7,569		3,632
In-kind redemptions		338,529			225,180		353,337
Net realized gain		350,339			949,791		507,943
Net change in unrealized appreciation (depreciation) on:
Investments		210,155			1,348,955		1,035,193
Foreign currencies		(5	)		—		—
Net change in unrealized appreciation		210,150			1,348,955		1,035,193
Net realized and unrealized gain		560,489			2,298,746		1,543,136
Net increase in net assets resulting from operations	$	693,788		$	2,496,988	$	1,764,662

See Notes to Financial Statements.

11

Statements of Changes in Net Assets

	PowerShares Ibbotson Alternative Completion Portfolio						PowerShares RiverFront Tactical Balanced Growth Portfolio
	Six Months Ended April 30, 2011 (Unaudited)			Year Ended October 31, 2010			Six Months Ended April 30, 2011 (Unaudited)			Year Ended October 31, 2010
OPERATIONS:
Net investment income	$	133,299		$	212,078		$	198,242		$	208,657
Net realized gain		350,339			293,209			949,791			452,441
Net change in unrealized appreciation		210,150			765,009			1,348,955			770,730
Net increase in net assets resulting from operations		693,788			1,270,296			2,496,988			1,431,828
Undistributed net investment income (loss) included in the price of units issued and redeemed		(19,290	)		(2,372	)		67,987			41,742
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income		(160,904	)		(233,453	)		(202,130	)		(215,089	)
SHAREHOLDER TRANSACTIONS:
Proceeds from shares sold		1,190,343			5,633,522			11,478,995			7,564,987
Value of shares repurchased		(3,494,924	)		(5,519,924	)		(2,515,049	)		(3,452,019	)
Net income equalization		19,290			2,372			(67,987	)		(41,742	)
Net increase (decrease) in net assets resulting from shares transactions		(2,285,291	)		115,970			8,895,959			4,071,226
Increase (Decrease) in Net Assets		(1,771,697	)		1,150,441			11,258,804			5,329,707
NET ASSETS:
Beginning of period		11,031,133			9,880,692			15,166,335			9,836,628
End of period	$	9,259,436		$	11,031,133		$	26,425,139		$	15,166,335
Undistributed net investment income at end of period	$	2,664		$	49,559		$	116,894		$	52,795
CHANGES IN SHARES OUTSTANDING:
Shares sold		100,000			500,000			900,000			650,000
Shares repurchased		(300,000	)		(500,000	)		(200,000	)		(300,000	)
Shares outstanding, beginning of period		950,000			950,000			1,250,000			900,000
Shares outstanding, end of period		750,000			950,000			1,950,000			1,250,000

See Notes to Financial Statements.

12

	PowerShares RiverFront Tactical Growth & Income Portfolio
	Six Months Ended April 30, 2011 (Unaudited)			Year Ended October 31, 2010
OPERATIONS:
Net investment income	$	221,526		$	309,604
Net realized gain		507,943			894,221
Net change in unrealized appreciation		1,035,193			203,862
Net increase in net assets resulting from operations		1,764,662			1,407,687
Undistributed net investment income (loss) included in the price of units issued and redeemed		78,097			28,634
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income		(256,256	)		(280,892	)
SHAREHOLDER TRANSACTIONS:
Proceeds from shares sold		11,026,041			7,797,262
Value of shares repurchased		(3,215,460	)		(5,345,080	)
Net income equalization		(78,097	)		(28,634	)
Net increase (decrease) in net assets resulting from shares transactions		7,732,484			2,423,548
Increase (Decrease) in Net Assets		9,318,987			3,578,977
NET ASSETS:
Beginning of period		15,124,068			11,545,091
End of period	$	24,443,055		$	15,124,068
Undistributed net investment income at end of period	$	133,583		$	90,216
CHANGES IN SHARES OUTSTANDING:
Shares sold		850,000			650,000
Shares repurchased		(250,000	)		(450,000	)
Shares outstanding, beginning of period		1,200,000			1,000,000
Shares outstanding, end of period		1,800,000			1,200,000

13

Financial Highlights

PowerShares Ibbotson Alternative Completion Portfolio

	Six Months Ended April 30, 2011			Year Ended October 31,						For the Period May 16, 2008* Through
	(Unaudited)			2010			2009			October 31, 2008
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	11.61		$	10.40		$	9.04		$	15.12
Net investment income**		0.16			0.22			0.19			0.12
Net realized and unrealized gain (loss) on investments		0.78			1.24			1.34			(6.14	)
Total from investment operations		0.94			1.46			1.53			(6.02	)
Distributions to shareholders from:
Net investment income		(0.20	)		(0.25	)		(0.17	)		(0.06	)
Net asset value at end of period	$	12.35		$	11.61		$	10.40		$	9.04
Share price at end of period***	$	12.35		$	11.55		$	10.51		$	8.90
NET ASSET VALUE, TOTAL RETURN****		8.23	%		14.18	%		17.36	%		(39.92	)%(a)
SHARE PRICE TOTAL RETURN****		8.79	%		12.42	%		20.46	%		(40.86	)%(a)
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	9,259		$	11,031		$	9,881		$	9,043
Ratio to average net assets of:
Expenses r		0.25	%		0.25	%		0.26	%		0.25	%†
Net investment income		2.80	%		2.02	%		2.14	%		2.36	%†
Portfolio turnover rate ††		1	%		122	%		48	%		89	%
Undistributed net investment income (loss) included in price of units issued and redeemed**#	$	(0.02	)	$	(0.00	)(c)	$	(0.01	)	$	0.09

PowerShares RiverFront Tactical Balanced Growth Portfolio

	Six Months Ended April 30, 2011			Year Ended October 31,						For the Period May 16, 2008* Through
	(Unaudited)			2010			2009			October 31, 2008
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	12.13		$	10.93		$	9.58		$	15.10
Net investment income**		0.12			0.22			0.25			0.19
Net realized and unrealized gain (loss) on investments		1.44			1.22			1.33			(5.60	)
Total from investment operations		1.56			1.44			1.58			(5.41	)
Distributions to shareholders from:
Net investment income		(0.14	)		(0.24	)		(0.23	)		(0.11	)
Net asset value at end of period	$	13.55		$	12.13		$	10.93		$	9.58
Share price at end of period***	$	13.56		$	12.14		$	11.01		$	9.34
NET ASSET VALUE, TOTAL RETURN****		12.96	%		13.33	%		16.88	%		(36.04	)%(b)
SHARE PRICE TOTAL RETURN****		12.95	%		12.60	%		20.75	%		(37.64	)%(b)
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	26,425		$	15,166		$	9,837		$	7,666
Ratio to average net assets of:
Expenses r		0.25	%		0.25	%		0.26	%		0.25	%†
Net investment income		1.97	%		1.99	%		2.63	%		3.58	%†
Portfolio turnover rate ††		90	%		204	%		57	%		78	%
Undistributed net investment income included in price of units issued and redeemed**#	$	0.04		$	0.04		$	0.01		$	0.06

*  Commencement of Investment Operations.

**  Based on average shares outstanding.

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

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

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

†  Annualized.

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

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

(a)  The net asset value total return from Fund Inception (May 20, 2008, first day trading on the exchange) to October 31, 2008 was (39.44)%. The share price total return from Fund Inception to October 31, 2008 was (41.13)%.

(b)  The net asset value total return from Fund Inception (May 20, 2008, first day trading on the exchange) to October 31, 2008 was (35.74)%. The share price total return from Fund Inception to October 31, 2008 was (38.01)%.

(c)  Amount represents less than $0.005.

See Notes to Financial Statements.

14

Financial Highlights (Continued)

PowerShares RiverFront Tactical Growth & Income Portfolio

	Six Months Ended April 30, 2011			Year Ended October 31,						For the Period May 16, 2008* Through
	(Unaudited)			2010			2009			October 31, 2008
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	12.60		$	11.55		$	10.20		$	15.08
Net investment income**		0.15			0.29			0.29			0.20
Net realized and unrealized gain (loss) on investments		1.01			1.02			1.34			(4.96	)
Total from investment operations		1.16			1.31			1.63			(4.76	)
Distributions to shareholders from:
Net investment income		(0.18	)		(0.26	)		(0.28	)		(0.12	)
Net asset value at end of period	$	13.58		$	12.60		$	11.55		$	10.20
Share price at end of period***	$	13.59		$	12.61		$	11.54		$	10.46
NET ASSET VALUE, TOTAL RETURN****		9.34	%		11.53	%		16.33	%		(31.74	)%(a)
SHARE PRICE TOTAL RETURN****		9.25	%		11.68	%		13.30	%		(30.02	)%(a)
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	24,443		$	15,124		$	11,545		$	7,142
Ratio to average net assets of:
Expenses r		0.25	%		0.25	%		0.26	%		0.25	%†
Net investment income		2.38	%		2.42	%		2.80	%		3.64	%†
Portfolio turnover rate ††		61	%		162	%		67	%		67	%
Undistributed net investment income included in price of units issued and redeemed**#	$	0.05		$	0.03		$	0.03		$	0.07

*  Commencement of Investment Operations.

**  Based on average shares outstanding.

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

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

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

†  Annualized.

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

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

(a)  The net asset value total return from Fund Inception (May 20, 2008, first day trading on the exchange) to October 31, 2008 was (31.56)%. The share price total return from Fund Inception to October 31, 2008 was (30.94)%.

See Notes to Financial Statements.

15

Notes to Financial Statements

PowerShares Exchange-Traded Fund Trust II

April 30, 2011 (Unaudited)

Note 1. Organization

PowerShares Exchange-Traded Fund Trust II (the "Trust") was organized as a Massachusetts business trust on October 10, 2006 and is authorized to have multiple series of portfolios. The Trust is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the "1940 Act"). As of April 30, 2011, the Trust offered forty-five portfolios. This report includes the following portfolios:

Full Name	Short Name
PowerShares Ibbotson Alternative Completion Portfolio	Ibbotson Alternative Completion Portfolio
PowerShares RiverFront Tactical Balanced Growth Portfolio	RiverFront Tactical Balanced Growth Portfolio
PowerShares RiverFront Tactical Growth & Income Portfolio	RiverFront Tactical Growth & Income Portfolio

Each portfolio (the "Fund" and collectively the "Funds") represents a separate series of the Trust. The shares of the Funds are referred to herein as "Shares" or "Fund's Shares." Each Fund's Shares are listed and traded on the NYSE Arca, Inc.

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

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

Fund	Index
Ibbotson Alternative Completion Portfolio	Ibbotson Alternative Completion IndexTM
RiverFront Tactical Balanced Growth Portfolio	RiverFront Global Tactical Balanced Growth IndexTM
RiverFront Tactical Growth & Income Portfolio	RiverFront Global Tactical Balanced Growth & Income IndexTM

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.

16

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust II

April 30, 2011 (Unaudited)

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. Securities with a demand feature exercisable within one to seven days are valued at par. 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.

17

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust II

April 30, 2011 (Unaudited)

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

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

B. Other Risks

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

Non-Diversified Fund Risk. 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.

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

Fund of Funds Risk. Each Fund pursues its investment objective by primarily investing its assets in underlying ETFs. A Fund's investment performance, because it is a fund of funds, largely depends on the investment performance of the underlying ETFs in which it invests. An investment in a Fund is subject to the risks associated with the underlying ETFs that comprise its Underlying Index. Each Fund will indirectly pay a proportional share of the fees and expenses of the Underlying ETFs in which it invests (including operating expenses and management fees). There is a risk that the evaluations and assumptions of each Fund's Index Provider regarding the asset classes represented in the Underlying Index may be incorrect based on actual market conditions. In addition, at times certain segments of the market represented by constituent Underlying ETFs in the Underlying Index may be out of favor and underperform other segments.

Risks of Investing in ETNs. The return on an exchange-traded note ("ETN") is generally linked to the performance of a particular market benchmark or strategy minus applicable fees. ETNs do not provide principal protection and may or may not make periodic coupon payments. ETNs are subject to credit risk and the value of the ETN may drop due to a downgrade in the issuer's credit rating, despite the underlying market benchmark or strategy remaining unchanged. The value of an ETN may also be influenced by time to maturity, level of supply and demand for the ETN, volatility and lack of liquidity in underlying assets, changes in the applicable interest rates, changes in the issuer's credit rating, and economic, legal, political, or geographic events that affect the referenced underlying asset. A Fund's decision to sell its ETN holdings may be limited by the availability of a secondary market. Certain ETNs in which a Fund may invest may be linked to master limited partnerships ("MLPs"). Investments linked to MLP units are subject to certain risks inherent in the structure of MLPs, including (i) tax risks, (ii) the limited ability to elect or remove

18

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust II

April 30, 2011 (Unaudited)

management or the general partner or managing member, (iii) limited voting rights and (iv) conflicts of interest between the general partner or managing member and its affiliates and the limited partners or members. Moreover, the tax treatment of ETNs is uncertain and the Internal Revenue Service could assert at any time that ETNs should be taxed in a manner that may adversely affect a Fund.

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 investments.

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

D. Investment Income and Investment Transactions

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

E. Expenses

Each Fund 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 Funds, including the cost of transfer agency, custody, fund administration, legal, audit and other services, except for distribution fees, if any, brokerage expenses, taxes, interest, litigation expenses, expenses of the underlying ETFs that are paid indirectly as a result of share ownership of the underlying ETFs and other extraordinary expenses.

Expenses included in each of the accompanying financial statements reflect the expenses of each Fund and do not include any expenses of the underlying ETFs, in which it invests. The effects of the underlying ETF's expenses are included in the realized and unrealized gain/loss on the investments in the underlying ETFs.

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.

19

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust II

April 30, 2011 (Unaudited)

G. Equalization

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

Note 3. Investment Advisory Agreement and Other Agreements

The Trust has entered into an Investment Advisory Agreement with the Adviser pursuant to which the Adviser has overall responsibility as the Funds' investment adviser for the selection and ongoing monitoring of the Funds' investments, managing the Funds' business affairs and providing certain clerical, bookkeeping and other administrative services. As compensation for its services, each Fund has agreed to pay the Adviser an annual unitary management fee of 0.25% of each Fund's average daily net assets. The Adviser has agreed to pay for substantially all expenses of the Funds, including the cost of transfer agency, custody, fund administration, legal, audit and other services, except for distribution fees, if any, brokerage expenses, taxes, interest, litigation expenses, expenses of the underlying ETFs that are paid indirectly as a result of share ownership of the underlying ETFs and other extraordinary expenses.

Each Fund indirectly bears the fees and expenses of the underlying ETFs in which it invests. The Adviser serves as the investment adviser to some of the underlying ETFs. By virtue of the Fund's investments in affiliated underlying ETFs, the management fee received by the Adviser for managing the underlying ETFs will increase.

The Trust has entered into a Distribution Agreement with Invesco Distributors, Inc. (the "Distributor"), which serves as the distributor of Creation Units for each Fund. The Distributor does not maintain a secondary market in the Shares. The Distributor has entered into a Marketing Agreement with DB Commodity Services LLC and Deutsche Bank AG, London Branch (collectively, "Deutsche Bank") to assist in marketing activities with respect to the PowerShares DB ETFs in which each Fund may invest. The Distributor receives a fee from Deutsche Bank for these services. The Funds are not charged any fees pursuant to the Distribution Agreement. The Distributor is an affiliate of the Adviser.

The Adviser has entered into a licensing agreement for the Ibbotson Alternative Completion Portfolio with Ibbotson Associates, and for the RiverFront Tactical Balanced Growth Portfolio and RiverFront Tactical Growth & Income Portfolio with RiverFront Investment Group^® (each a "Licensor"). Each Underlying Index name trademark is owned by the 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 each Fund may track its respective Underlying Index.

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.

20

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust II

April 30, 2011 (Unaudited)

Note 4. Investments in Affiliates

The Funds and other certain underlying ETFs have the same investment adviser and, therefore, are considered to be affiliated. The tables below show the transactions in and earnings from investments in affiliated ETFs for the six-month period ended April 30, 2011.

Ibbotson Alternative Completion Portfolio

	Value 10/31/2010		Purchase at Cost		Proceeds from Sales			Change in Unrealized Appreciation (Depreciation)			Realized Gain		Value 4/30/2011		Dividend Income
PowerShares Emerging Markets Infrastructure Portfolio	$	1,010,109	$	23,178	$	(323,401	)	$	94,181		$	60,723	$	864,790	$	5,900
PowerShares Emerging Markets Sovereign Debt Portfolio		1,308,469		130,425		(296,592	)		(65,207	)		5,969		1,083,064		18,855
PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio		669,316		7,055		(206,382	)		66,405			27,536		563,930		8,874
PowerShares Global Agriculture Portfolio		350,396		2,617		(120,284	)		16,498			28,867		278,094		2,400
PowerShares Global Gold and Precious Metals Portfolio		328,848		14,063		(89,216	)		14,572			16,241		284,508		5,461
PowerShares MENA Frontier Countries Portfolio		1,318,511		155,777		(285,911	)		(105,980	)		23,251		1,105,648		17,409
PowerShares Preferred Portfolio		950,399		77,660		(237,718	)		8,827			9,674		808,842		17,439
PowerShares S&P 500 BuyWrite Portfolio		431,714		27,262		(113,205	)		12,892			5,406		364,069		8,365
Total Investments in Affiliates	$	6,367,762	$	438,037	$	(1,672,709	)	$	42,188		$	177,667	$	5,352,945	$	84,703

RiverFront Tactical Balanced Growth Portfolio

	Value 10/31/2010		Purchase at Cost		Proceeds from Sales			Change in Unrealized Appreciation (Depreciation)			Realized Gain (Loss)			Value 4/30/2011		Dividend Income
PowerShares Active Low Duration Portfolio	$	159,256	$	554,036	$	(722,766	)	$	(95	)	$	9,569		$	—	$	2,254
PowerShares Active Mega-Cap Portfolio		—		1,197,152		(18,991	)		63,163			(134	)		1,241,190		2,136
PowerShares Active U.S. Real Estate Fund		292,003		22,469		(309,382	)		(33,180	)		28,090			—		—
PowerShares Dividend Achievers(TM) Portfolio		1,060,298		1,134,951		(1,492,535	)		56,511			39,570			798,795		14,431
PowerShares DWA Technical Leaders Portfolio		176,256		1,157,840		(368,300	)		104,617			(2,262	)		1,068,151		344
PowerShares Dynamic Basic Materials Sector Portfolio		252,609		261,683		(11,429	)		73,564			65			576,492		6,260
PowerShares Dynamic Biotechnology & Genome Portfolio		151,324		46,828		(204,567	)		(11,740	)		18,155			—		—
PowerShares Dynamic Consumer Discretionary Sector Portfolio		530,762		454,709		(89,797	)		99,233			15,084			1,009,991		3,366
PowerShares Dynamic Energy Sector Portfolio		562,070		430,409		(1,157,325	)		(61,744	)		226,590			—		2,575
PowerShares Dynamic Financial Sector Portfolio		200,254		1,501,534		(169,437	)		86,274			19,698			1,638,323		6,200

21

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust II

April 30, 2011 (Unaudited)

	Value 10/31/2010		Purchase at Cost		Proceeds from Sales			Change in Unrealized Appreciation (Depreciation)			Realized Gain (Loss)			Value 4/30/2011		Dividend Income
PowerShares Dynamic Food & Beverage Portfolio	$	445,067	$	476,746	$	(510,972	)	$	23,500		$	29,975		$	464,316	$	3,386
PowerShares Dynamic Healthcare Sector Portfolio		181,948		1,018,657		(178,916	)		106,421			5,754			1,133,864		—
PowerShares Dynamic Industrials Sector Portfolio		661,763		592,604		(90,861	)		179,030			17,051			1,359,587		2,262
PowerShares Dynamic Insurance Portfolio		318,707		152,218		(493,088	)		(21,229	)		43,392			—		5,236
PowerShares Dynamic Large Cap Portfolio		649,733		1,671,793		(1,530,820	)		112,497			76,872			980,075		9,956
PowerShares Dynamic Mid Cap Portfolio		—		263,735		—			(460	)		—			263,275		—
PowerShares Dynamic Networking Portfolio		160,884		89,882		(299,660	)		(20,225	)		69,119			—		833
PowerShares Dynamic Oil & Gas Services Portfolio		—		580,692		(189,460	)		74,604			(351	)		465,485		—
PowerShares Dynamic Pharmaceuticals Portfolio		371,475		210,138		(599,905	)		(43,308	)		61,600			—		1,043
PowerShares Dynamic Software Portfolio		300,655		117,988		(457,592	)		(24,428	)		63,377			—		—
PowerShares Dynamic Technology Sector Portfolio		570,650		1,002,242		(18,477	)		109,745			(185	)		1,663,975		359
PowerShares Dynamic Telecommunications & Wireless Portfolio		251,207		41,638		(297,398	)		(35,973	)		40,526			—		65
PowerShares Dynamic Utilities Portfolio		278,978		384,626		(665,085	)		(10,478	)		11,959			—		4,367
PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio		469,022		1,309,793		(705,032	)		77,245			34,865			1,185,893		7,304
PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio		—		1,119,710		(502,001	)		37,716			2,937			658,362		245
PowerShares FTSE RAFI Emerging Markets Portfolio		1,885,084		1,792,339		(1,229,478	)		142,230			(6,641	)		2,583,534		17,836
PowerShares Fundamental High Yield® Corporate Bond Portfolio		902,523		605,916		(879,431	)		9,931			2,517			641,456		14,009
PowerShares International Dividend Achievers(TM) Portfolio		457,136		264,420		(107,523	)		60,527			965			675,525		9,890
PowerShares VRDO Tax-Free Weekly Portfolio		414,084		430,245		(859,697	)		217			15,151			—		611
PowerShares Zacks Micro Cap Portfolio		—		2,444,182		(1,344,828	)		21,022			19,549			1,139,925		273
Total Investments in Affiliates	$	11,703,748	$	21,331,175	$	(15,504,753	)	$	1,175,187		$	842,857		$	19,548,214	$	115,241

22

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust II

April 30, 2011 (Unaudited)

RiverFront Tactical Growth & Income Portfolio

	Value 10/31/2010		Purchase at Cost		Proceeds from Sales			Change in Unrealized Appreciation (Depreciation)			Realized Gain (Loss)			Value 4/30/2011		Dividend Income
PowerShares Active Low Duration Portfolio	$	474,143	$	777,918	$	(53,862	)	$	(7,103	)	$	477		$	1,191,573	$	3
PowerShares Active Mega-Cap Portfolio		—		510,541		(19,855	)		26,377			306			517,369		807
PowerShares Active U.S. Real Estate Fund		299,517		115,894		(205,331	)		11,711			27,319			249,110		4,947
PowerShares Dividend Achievers(TM) Portfolio		2,029,537		1,227,109		(1,480,853	)		341,887			68,362			2,186,042		27,583
PowerShares Dynamic Basic Materials Sector Portfolio		—		240,104		(11,105	)		27,337			670			257,006		—
PowerShares Dynamic Consumer Discretionary Sector Portfolio		308,945		737,329		(508,203	)		31,667			49,508			619,246		2,840
PowerShares Dynamic Energy Sector Portfolio		149,599		832,972		(51,084	)		179,993			17,070			1,128,550		1,309
PowerShares Dynamic Financial Sector Portfolio		—		899,732		(464,207	)		43,731			12,290			491,546		3,645
PowerShares Dynamic Healthcare Sector Portfolio		151,493		505,655		(166,729	)		10,190			11,943			512,552		—
PowerShares Dynamic Industrials Sector Portfolio		239,006		796,898		(225,023	)		34,529			53,505			898,915		820
PowerShares Dynamic Mid Cap Portfolio		163,804		97,255		(114,944	)		135,450			1,698			283,263		1,016
PowerShares Dynamic Pharmaceuticals Portfolio		371,475		210,138		(599,905	)		(43,308	)		61,600			—		1,043
PowerShares Dynamic Technology Sector Portfolio		492,347		435,252		(43,425	)		87,625			7,209			979,008		310
PowerShares Dynamic Telecommunications & Wireless Portfolio		251,207		41,638		(297,398	)		(35,973	)		40,526			—		65
PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio		159,537		897,728		(379,592	)		14,617			40,564			732,854		—
PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio		—		422,355		(187,110	)		12,153			1,275			248,673		84
PowerShares FTSE RAFI Emerging Markets Portfolio		1,366,563		1,325,001		(866,723	)		45,244			43,439			1,913,524		13,159
PowerShares Fundamental High Yield® Corporate Bond Portfolio		1,487,641		1,267,399		(1,342,846	)		25,495			(3,724	)		1,433,965		42,210
PowerShares High Yield Equity Dividend Achievers(TM) Portfolio		527,532		300,988		(50,896	)		51,161			2,834			831,619		4,634
PowerShares International Dividend Achievers(TM) Portfolio		311,242		177,378		(139,807	)		161,880			2,851			513,544		6,770
PowerShares VRDO Tax Free Weekly Portfolio		499,900		1,464,839		(1,813,295	)		12,105			(3,788	)		159,761		1,734
Powershares Zacks Micro Cap Portfolio		—		257,305		(13,494	)		18,155			699			262,665		294
Total Investments in Affiliates	$	9,283,488	$	13,541,428	$	(9,035,687	)	$	1,184,923		$	436,633		$	15,410,785	$	113,273

23

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust II

April 30, 2011 (Unaudited)

Note 5. Additional Valuation Information

GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3) generally when market prices are not readily available or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment's assigned level:

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

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

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

As of April 30, 2011, the securities in each Fund were valued based on Level 1 inputs. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

With respect to each Fund, during the six-month period ended April 30, 2011, there were no significant transfers between investment levels.

Note 6. Tax Information

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from GAAP. Reclassifications are made to the Fund's capital accounts to reflect income and gains available for distributions (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund's fiscal year-end.

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.

24

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust II

April 30, 2011 (Unaudited)

The following Funds had capital loss carryforward amounts as of October 31, 2010, which expire on October 31 of each year listed below:

	2016		2017		2018		Total*
Ibbotson Alternative Completion Portfolio	$	1,740,326	$	1,239,640	$	1,091,178	$	4,071,144
RiverFront Tactical Balanced Growth Portfolio		1,323,393		967,037		224,350		2,514,780
RiverFront Tactical Growth & Income Portfolio		895,279		793,493		302,380		1,991,152

* 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 six-month period ended April 30, 2011, the cost of securities purchased and proceeds from sales of securities, excluding short-term securities, money market funds and in-kind transactions, were as follows:

	Purchases		Sales
Ibbotson Alternative Completion Portfolio	$	105,037	$	161,611
RiverFront Tactical Balanced Growth Portfolio		19,957,742		18,346,517
RiverFront Tactical Growth & Income Portfolio		12,059,352		11,462,881

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

	Securities Received		Securities Delivered
Ibbotson Alternative Completion Portfolio	$	481,534	$	2,747,970
RiverFront Tactical Balanced Growth Portfolio		10,411,279		3,103,060
RiverFront Tactical Growth & Income Portfolio		10,253,366		3,128,964

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

At April 30, 2011, cost of investments on a tax basis includes adjustments for financial reporting purposes, as of the most recently completed Federal income tax reporting period-end.

	Cost		Net Unrealized Appreciation		Gross Unrealized Appreciation		Gross Unrealized (Depreciation)
Ibbotson Alternative Completion Portfolio	$	7,953,634	$	1,531,129	$	1,531,883	$	(754	)
RiverFront Tactical Balanced Growth Portfolio		24,083,232		2,412,261		2,550,863		(138,602	)
RiverFront Tactical Growth & Income Portfolio		22,375,982		2,574,936		2,617,705		(42,769	)

25

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust II

April 30, 2011 (Unaudited)

Note 8. Trustees' Fees

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

The Trust has adopted a deferred compensation plan (the "Plan"). Under the Plan, an Independent Trustee who has executed a Deferred Fee Agreement (a "Participating Trustee") may defer receipt of all or a portion of his compensation ("Deferral Fees"). Such Deferral Fees are deemed to be invested in select PowerShares Funds. The Deferral Fees payable to the Participating Trustee are valued as of the date such Deferral Fees would have been paid to the Participating Trustee. The value increases with contributions or with increases in the value of the Shares selected, and the value decreases with distributions or with declines in the value of the Shares selected.

Note 9. 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 10. Indemnifications

Under the Trust's organizational documents, its officers and Trustees are indemnified against certain liability 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.

26

Board Considerations Regarding Continuation of Investment Advisory Agreement

At a meeting held on April 14, 2011, the Board of Trustees of the PowerShares Exchange-Traded Fund Trust II (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 40 series (each, a "Fund" and collectively, the "Funds"):

PowerShares 1-30 Laddered Treasury Portfolio

PowerShares Build America Bond Portfolio

PowerShares CEF Income Composite Portfolio

PowerShares DWA Developed Markets Technical Leaders Portfolio

PowerShares DWA Emerging Markets Technical Leaders Portfolio

PowerShares Dynamic Developed International Opportunities Portfolio

PowerShares Emerging Markets Infrastructure Portfolio

PowerShares Emerging Markets Sovereign Debt Portfolio

PowerShares FTSE RAFI Asia Pacific ex-Japan Portfolio

PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio

PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio

PowerShares FTSE RAFI Emerging Markets Portfolio

PowerShares Fundamental High Yield^® Corporate Bond Portfolio

PowerShares Global Agriculture Portfolio

PowerShares Global Clean Energy Portfolio

PowerShares Global Coal Portfolio

PowerShares Global Gold and Precious Metals Portfolio

PowerShares Global Nuclear Energy Portfolio

PowerShares Global Steel Portfolio

PowerShares Global Water Portfolio

PowerShares Global Wind Energy Portfolio

PowerShares Ibbotson Alternative Completion Portfolio

PowerShares Insured California Municipal Bond Portfolio

PowerShares Insured National Municipal Bond Portfolio

PowerShares Insured New York Municipal Bond Portfolio

PowerShares International Corporate Bond Portfolio

PowerShares MENA Frontier Countries Portfolio

PowerShares Preferred Portfolio

PowerShares RiverFront Tactical Balanced Growth Portfolio

PowerShares RiverFront Tactical Growth & Income Portfolio

PowerShares S&P SmallCap Consumer Discretionary Portfolio

PowerShares S&P SmallCap Consumer Staples Portfolio

PowerShares S&P SmallCap Energy Portfolio

PowerShares S&P SmallCap Financials Portfolio

PowerShares S&P SmallCap Health Care Portfolio

PowerShares S&P SmallCap Industrials Portfolio

PowerShares S&P SmallCap Information Technology Portfolio

PowerShares S&P SmallCap Materials Portfolio

PowerShares S&P SmallCap Utilities Portfolio

PowerShares VRDO Tax-Free Weekly 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,

27

Board Considerations Regarding Continuation of Investment Advisory Agreement (Continued)

determined to approve the continuation of the Investment Advisory Agreement for each Fund. No single factor was determinative in the Board's analysis.

Nature, Extent and Quality of Services. In evaluating the nature, extent and quality of the Adviser's services, the Trustees reviewed information concerning the functions performed by the Adviser for the Funds, information describing the Adviser's current organization and projected staffing, including operations assistance provided by the Adviser's parent organization, Invesco Ltd., and the background and experience of the persons responsible for the day-to-day management of the Funds. The Trustees reviewed matters related to the Adviser's execution of portfolio transactions on behalf of the Funds. The Trustees also reviewed information on the performance of the Funds and the performance of their underlying indices through December 31, 2010, including reports on the correlation and tracking error between the underlying index and each Fund's performance, as well as the Adviser's analysis of the tracking error between each Fund and its underlying index. The Trustees noted that the correlation for each Fund, other than PowerShares VRDO Tax-Free Weekly Portfolio, was within the targeted range set forth in the Trust's registration statement and the tracking error for each Fund was within the targeted range set forth in the Trust's registration statement. The Trustees reviewed the reasons for PowerShares VRDO Tax-Free Weekly Portfolio's level of correlation to its underlying index, including the Adviser's representation that a primary cause is the abnormally low yield environment and its expectation that, over time, the Fund's correlation will return to within the targeted range set forth in the Trust's registration statement. The Trustees concluded that each Fund's correlation to its underlying index and the tracking error for each Fund were 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 total expense ratio and unitary advisory fee, as compared to information compiled by the Adviser from Lipper Inc. databases on the expense ratios of comparable exchange-traded funds ("ETFs"), open-end (non-ETF) index funds and open-end actively-managed funds. The Trustees noted that the annual advisory fee charged to each Fund, as set forth below, is a unitary fee and that the Adviser pays all other operating expenses of each Fund, except that each Fund pays its brokerage expenses, taxes, interest and extraordinary expenses.

0.25%:  PowerShares 1-30 Laddered Treasury Portfolio, PowerShares Ibbotson Alternative Completion Portfolio, PowerShares RiverFront Tactical Balanced Growth Portfolio, PowerShares RiverFront Tactical Growth & Income Portfolio, PowerShares VRDO Tax-Free Weekly Portfolio

0.29%:  PowerShares S&P SmallCap Consumer Discretionary Portfolio, PowerShares S&P SmallCap Consumer Staples Portfolio, PowerShares S&P SmallCap Energy Portfolio, PowerShares S&P SmallCap Financials Portfolio, PowerShares S&P SmallCap Health Care Portfolio, PowerShares S&P SmallCap Industrials Portfolio, PowerShares S&P SmallCap Information Technology

28

Board Considerations Regarding Continuation of Investment Advisory Agreement (Continued)

Portfolio, PowerShares S&P SmallCap Materials Portfolio, PowerShares S&P SmallCap Utilities Portfolio

0.35%:  PowerShares Build America Bond Portfolio, PowerShares Insured California Municipal Bond Portfolio, PowerShares Insured National Municipal Bond Portfolio, PowerShares Insured New York Municipal Bond Portfolio

0.50%:  PowerShares CEF Income Composite Portfolio, PowerShares Emerging Markets Sovereign Debt Portfolio, PowerShares Fundamental High Yield^® Corporate Bond Portfolio, PowerShares International Corporate Bond Portfolio, PowerShares Preferred Portfolio

0.75%:  PowerShares Dynamic Developed International Opportunities Portfolio, PowerShares Emerging Markets Infrastructure Portfolio, PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio, PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio, PowerShares Global Agriculture Portfolio, PowerShares Global Clean Energy Portfolio, PowerShares Global Coal Portfolio, PowerShares Global Gold and Precious Metals Portfolio, PowerShares Global Nuclear Energy Portfolio, PowerShares Global Steel Portfolio, PowerShares Global Water Portfolio, PowerShares Global Wind Energy Portfolio

0.80%:  PowerShares DWA Developed Markets Technical Leaders Portfolio, PowerShares FTSE RAFI Asia Pacific ex-Japan Small-Mid Portfolio

0.85%:  PowerShares FTSE RAFI Emerging Markets Portfolio

0.90%:  PowerShares DWA Emerging Markets Technical Leaders Portfolio

0.95%:  PowerShares MENA Frontier Countries Portfolio

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 each Fund's advisory fee was:

•  higher than the median expense ratio of its ETF peer funds (except for the advisory fee of each of PowerShares DWA Developed Markets Technical Leaders Portfolio, PowerShares Emerging Markets Sovereign Debt Portfolio, PowerShares Fundamental High Yield^® Corporate Bond Portfolio, PowerShares Global Agriculture Portfolio, PowerShares Ibbotson Alternative Completion Portfolio, PowerShares S&P SmallCap Consumer Discretionary Portfolio, PowerShares S&P SmallCap Consumer Staples Portfolio, PowerShares S&P SmallCap Energy Portfolio, PowerShares S&P SmallCap Financials Portfolio, PowerShares S&P SmallCap Health Care Portfolio, PowerShares S&P SmallCap Industrials Portfolio, PowerShares S&P SmallCap Information Technology Portfolio, PowerShares S&P SmallCap Materials Portfolio and PowerShares S&P SmallCap Utilities Portfolio, which was equal to or lower 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 advisory fee of each of PowerShares CEF Income Composite Portfolio, PowerShares DWA Developed Markets Technical Leaders Portfolio, PowerShares Global Agriculture Portfolio, PowerShares Global Clean Energy Portfolio, PowerShares Global Coal Portfolio, PowerShares Global Gold and Precious Metals

29

Board Considerations Regarding Continuation of Investment Advisory Agreement (Continued)

Portfolio, PowerShares Global Nuclear Energy Portfolio, PowerShares Global Steel Portfolio, PowerShares Global Water Portfolio, PowerShares Global Wind Energy Portfolio, PowerShares Ibbotson Alternative Completion Portfolio, PowerShares RiverFront Tactical Balanced Growth Portfolio, PowerShares RiverFront Tactical Growth & Income Portfolio, PowerShares S&P SmallCap Consumer Discretionary Portfolio, PowerShares S&P SmallCap Consumer Staples Portfolio, PowerShares S&P SmallCap Financials Portfolio, PowerShares S&P SmallCap Health Care Portfolio, PowerShares S&P SmallCap Industrials Portfolio, PowerShares S&P SmallCap Information Technology Portfolio, PowerShares S&P SmallCap Materials Portfolio and PowerShares S&P SmallCap Utilities Portfolio, which was lower than the median expense ratio of its open-end index peer funds; and there was no comparable open-end index peer fund information available for PowerShares Dynamic Developed International Opportunities Portfolio, PowerShares Emerging Markets Sovereign Debt Portfolio, PowerShares FTSE RAFI Asia Pacific ex-Japan Portfolio, PowerShares Fundamental High Yield^® Corporate Bond Portfolio, PowerShares Insured California Municipal Bond Portfolio, PowerShares Insured National Municipal Bond Portfolio, PowerShares Insured New York Municipal Bond Portfolio, PowerShares International Corporate Bond Portfolio or PowerShares VRDO Tax-Free Weekly Portfolio); but

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

The Trustees considered that the Adviser had agreed to waive a portion of its advisory fee, at least until April 20, 2012, for PowerShares Build America Bond Portfolio, PowerShares Insured California Municipal Bond Portfolio, PowerShares Insured National Municipal Bond Portfolio, PowerShares Insured New York Municipal Bond Portfolio and PowerShares MENA Frontier Countries Portfolio. 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.

Economies of Scale and Whether Fee Levels Reflect These Economies of Scale. The Trustees reviewed the information provided by the Adviser as to the extent to which economies of scale are realized as each Fund grows and whether fee levels reflect economies of scale for the benefit of shareholders. The Trustees reviewed each Fund's asset size and expense ratio. The Trustees noted that any reduction in fixed costs associated with the management of the Funds would be enjoyed by the Adviser, but a unitary fee provides certainty in expenses for the Funds. The Trustees considered whether the advisory fee rate for each Fund was reasonable in relation to the asset size of that Fund, and concluded that the flat advisory fee was reasonable and appropriate.

30

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.

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.

31

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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) 983-0903. This information is also available on the Securities and Exchange Commission's ("Commission") website at www.sec.gov.

Information regarding how the Funds voted proxies for portfolio securities, if applicable, during the most recent 12-month period ended June 30, is also available, without charge and upon request, by (i) calling (800) 983-0903; or (ii) accessing the Trust's Form N-PX on the Commission's website at www.sec.gov.

QUARTERLY PORTFOLIOS

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

301 West Roosevelt Road
Wheaton, IL 60187

800.983.0903
www.invescopowershares.com

© 2011 Invesco PowerShares Capital Management LLC  P-PS-SAR-11

2011 Semi-Annual Report to Shareholders

April 30, 2011

PowerShares S&P SmallCap Consumer Discretionary Portfolio (PSCD)

PowerShares S&P SmallCap Consumer Staples Portfolio (PSCC)

PowerShares S&P SmallCap Energy Portfolio (PSCE)

PowerShares S&P SmallCap Financials Portfolio (PSCF)

PowerShares S&P SmallCap Health Care Portfolio (PSCH)

PowerShares S&P SmallCap Industrials Portfolio (PSCI)

PowerShares S&P SmallCap Information Technology Portfolio (PSCT)

PowerShares S&P SmallCap Materials Portfolio (PSCM)

PowerShares S&P SmallCap Utilities Portfolio (PSCU)

Table of Contents

Frequency Distribution of Discounts & Premiums	2
Fees and Expenses	4
S&P SmallCap Portfolios
Schedules of Investments
PowerShares S&P SmallCap Consumer Discretionary Portfolio (PSCD)	6
PowerShares S&P SmallCap Consumer Staples Portfolio (PSCC)	9
PowerShares S&P SmallCap Energy Portfolio (PSCE)	10
PowerShares S&P SmallCap Financials Portfolio (PSCF)	11
PowerShares S&P SmallCap Health Care Portfolio (PSCH)	13
PowerShares S&P SmallCap Industrials Portfolio (PSCI)	15
PowerShares S&P SmallCap Information Technology Portfolio (PSCT)	17
PowerShares S&P SmallCap Materials Portfolio (PSCM)	20
PowerShares S&P SmallCap Utilities Portfolio (PSCU)	21
Statements of Assets and Liabilities	22
Statements of Operations	24
Statements of Changes in Net Assets	26
Financial Highlights	30
Notes to Financial Statements	35
Board Considerations Regarding Continuation of Investment Advisory Agreement	44

Frequency Distribution of Discounts & Premiums

Since Inception through April 30, 2011

					Closing Price Above NAV (bps)
Ticker	Fund Name	Inception	Trading Days		0-24		25-49		50-99		100-149		150-199		200+
PSCD	PowerShares S&P SmallCap Consumer Discretionary Portfolio	4/7/10		270		130		4		0		0		0		0
PSCC	PowerShares S&P SmallCap Consumer Staples Portfolio	4/7/10		270		136		0		0		0		0		0
PSCE	PowerShares S&P SmallCap Energy Portfolio	4/7/10		270		138		2		0		0		0		0
PSCF	PowerShares S&P SmallCap Financials Portfolio	4/7/10		270		130		4		1		0		0		0
PSCH	PowerShares S&P SmallCap Health Care Portfolio	4/7/10		270		145		6		1		0		0		0
PSCI	PowerShares S&P SmallCap Industrials Portfolio	4/7/10		270		132		0		0		0		0		0
PSCT	PowerShares S&P SmallCap Information Technology Portfolio	4/7/10		270		154		1		1		0		0		0
PSCM	PowerShares S&P SmallCap Materials Portfolio	4/7/10		270		95		1		1		0		0		0
PSCU	PowerShares S&P SmallCap Utilities Portfolio	4/7/10		270		130		3		0		0		0		0

2

	Closing Price Below NAV (bps)
Ticker	-0-24		-25-49		-50-99		-100-149		-150-199		-200+
PSCD		135		0		1		0		0		0
PSCC		134		1		0		0		0		0
PSCE		129		0		0		1		0		0
PSCF		133		1		0		0		0		1
PSCH		118		0		1		0		0		0
PSCI		138		0		0		0		0		0
PSCT		113		1		1		0		0		0
PSCM		171		0		2		0		0		0
PSCU		138		0		0		0		0		0

3

Fees and Expenses

As a shareholder of a Fund of the PowerShares Exchange-Traded Fund Trust II, you incur a unitary management fee. The expense examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other funds.

The example is based on an investment of $1,000 invested at the beginning of the period and held through the six-month period ended April 30, 2011.

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 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 Value November 1, 2010		Ending Account Value April 30, 2011		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During Six-Month Period(1)
PowerShares S&P SmallCap Consumer Discretionary Portfolio Actual	$	1,000.00	$	1,183.49		0.29	%	$	1.57
Hypothetical (5% return before expenses)	$	1,000.00	$	1,023.36		0.29	%	$	1.45
PowerShares S&P SmallCap Consumer Staples Portfolio Actual	$	1,000.00	$	1,171.83		0.29	%	$	1.56
Hypothetical (5% return before expenses)	$	1,000.00	$	1,023.36		0.29	%	$	1.45
PowerShares S&P SmallCap Energy Portfolio Actual	$	1,000.00	$	1,596.81		0.29	%	$	1.87
Hypothetical (5% return before expenses)	$	1,000.00	$	1,023.36		0.29	%	$	1.45
PowerShares S&P SmallCap Financials Portfolio Actual	$	1,000.00	$	1,167.33		0.29	%	$	1.56
Hypothetical (5% return before expenses)	$	1,000.00	$	1,023.36		0.29	%	$	1.45

4

Fees and Expenses (Continued)

	Beginning Account Value Value November 1, 2010		Ending Account Value April 30, 2011		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During Six-Month Period(1)
PowerShares S&P SmallCap Health Care Portfolio Actual	$	1,000.00	$	1,350.08		0.29	%	$	1.69
Hypothetical (5% return before expenses)	$	1,000.00	$	1,023.36		0.29	%	$	1.45
PowerShares S&P SmallCap Industrials Portfolio Actual	$	1,000.00	$	1,200.31		0.29	%	$	1.58
Hypothetical (5% return before expenses)	$	1,000.00	$	1,023.36		0.29	%	$	1.45
PowerShares S&P SmallCap Information Technology Portfolio Actual	$	1,000.00	$	1,238.61		0.29	%	$	1.61
Hypothetical (5% return before expenses)	$	1,000.00	$	1,023.36		0.29	%	$	1.45
PowerShares S&P SmallCap Materials Portfolio Actual	$	1,000.00	$	1,174.83		0.29	%	$	1.56
Hypothetical (5% return before expenses)	$	1,000.00	$	1,023.36		0.29	%	$	1.45
PowerShares S&P SmallCap Utilities Portfolio Actual	$	1,000.00	$	1,098.93		0.29	%	$	1.51
Hypothetical (5% return before expenses)	$	1,000.00	$	1,023.36		0.29	%	$	1.45

(1)  Expenses are calculated using the annualized expense ratio, which represents the ongoing expenses as a percentage of net assets for the six-month period ended April 30, 2011. Expenses are calculated by multiplying the Fund's annualized expense ratio by the average account value for the period; then multiplying the result by 181 and then dividing the result by 365.

5

Portfolio Composition

PowerShares S&P SmallCap Consumer Discretionary Portfolio

Industry Breakdown (% of the Fund's Net Assets) as of April 30, 2011 (Unaudited)

Retail	48.7
Apparel	17.2
Commercial Services	11.1
Leisure Time	4.8
Home Builders	2.6
Home Furnishings	2.5
Distribution/Wholesale	2.0
Entertainment	2.0
Household Products/Wares	1.8
Internet	1.7
Auto Parts & Equipment	1.5
Miscellaneous Manufacturing	1.0
Beverages	0.8
Toys/Games/Hobbies	0.8
Building Materials	0.6
Lodging	0.5
Media	0.4
Money Market Fund	0.0
Other assets less liabilities	0.0

Schedule of Investments

PowerShares S&P SmallCap Consumer Discretionary Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Common Stocks—100.0%
		Apparel—17.2%
	43,598	Carter's, Inc.*	$	1,348,050
	67,013	Crocs, Inc.*		1,347,631
	55,016	Iconix Brand Group, Inc.*		1,347,342
	20,534	K-Swiss, Inc., Class A*		252,774
	17,661	Maidenform Brands, Inc.*		559,147
	10,492	Oxford Industries, Inc.		360,400
	9,370	Perry Ellis International, Inc.*		264,047
	98,288	Quiksilver, Inc.*		427,553
	25,865	Skechers U.S.A., Inc., Class A*		492,728
	17,571	Steven Madden Ltd.*		933,899
	19,143	True Religion Apparel, Inc.*		578,501
	12,878	Volcom, Inc.		254,083
	37,487	Wolverine World Wide, Inc.		1,487,484
				9,653,639
		Auto Parts & Equipment—1.5%
	25,037	Spartan Motors, Inc.		169,250
	14,691	Standard Motor Products, Inc.		209,347
	17,569	Superior Industries International, Inc.		443,968
				822,565
		Beverages—0.8%
	9,871	Peet's Coffee & Tea, Inc.*		458,804

Number of Shares			Value
		Common Stocks (Continued)
		Building Materials—0.6%
	14,410	Drew Industries, Inc.	$	346,849
		Commercial Services—11.1%
	14,063	American Public Education, Inc.*		594,162
	20,455	Arbitron, Inc.		791,199
	12,321	Capella Education Co.*		611,121
	63,744	Corinthian Colleges, Inc.*		283,661
	47,336	Hillenbrand, Inc.		1,084,941
	118,054	Live Nation Entertainment, Inc.*		1,309,219
	10,699	Midas, Inc.*		77,782
	22,957	Monro Muffler Brake, Inc.		697,434
	7,378	Pre-Paid Legal Services, Inc.*		486,579
	15,790	Universal Technical Institute, Inc.		285,325
				6,221,423
		Distribution/Wholesale—2.0%
	36,908	Pool Corp.		1,116,836
		Entertainment—2.0%
	46,766	Pinnacle Entertainment, Inc.*		649,112
	40,820	Shuffle Master, Inc.*		446,163
				1,095,275

See Notes to Financial Statements.

6

Schedule of Investments (Continued)

PowerShares S&P SmallCap Consumer Discretionary Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Common Stocks (Continued)
		Home Builders—2.6%
	14,051	M/I Homes, Inc.*	$	186,738
	24,409	Meritage Homes Corp.*		583,619
	5,186	Skyline Corp.		101,697
	74,294	Standard Pacific Corp.*		286,775
	21,945	Winnebago Industries, Inc.*		271,679
				1,430,508
		Home Furnishings—2.5%
	14,068	Audiovox Corp., Class A*		103,822
	21,707	Ethan Allen Interiors, Inc.		522,922
	39,187	La-Z-Boy, Inc.*		460,839
	11,187	Universal Electronics, Inc.*		309,768
				1,397,351
		Household Products/Wares—1.8%
	4,095	Blyth, Inc.		193,038
	23,207	Helen of Troy Ltd.*		722,202
	16,241	Kid Brands, Inc.*		118,722
				1,033,962
		Internet—1.7%
	11,012	Blue Nile, Inc.*		627,684
	20,196	Nutrisystem, Inc.		303,748
				931,432
		Leisure Time—4.8%
	9,229	Arctic Cat, Inc.*		154,955
	67,201	Brunswick Corp.		1,570,487
	48,484	Callaway Golf Co.		343,267
	30,621	Interval Leisure Group, Inc.*		492,080
	20,391	Multimedia Games, Inc.*		119,695
				2,680,484
		Lodging—0.5%
	16,312	Marcus Corp.		180,900
	8,514	Monarch Casino & Resort, Inc.*		97,571
				278,471
		Media—0.4%
	23,356	E.W. Scripps Co. (The), Class A*		221,882
		Miscellaneous Manufacturing—1.0%
	13,052	Movado Group, Inc.		217,838
	14,099	Sturm Ruger & Co., Inc.		335,274
				553,112
		Retail—48.7%
	16,464	Big 5 Sporting Goods Corp.		196,745
	1,083	Biglari Holdings, Inc.*		473,531
	17,202	BJ's Restaurants, Inc.*		807,634
	33,146	Brown Shoe Co., Inc.		419,297
	19,776	Buckle, Inc. (The)		899,610
	13,770	Buffalo Wild Wings, Inc.*		841,347
	30,497	Cabela's, Inc., Class A*		778,893
	18,524	California Pizza Kitchen, Inc.*		296,384

Number of Shares			Value
		Common Stocks (Continued)
	22,292	Cato Corp. (The), Class A	$	568,669
	15,358	CEC Entertainment, Inc.		580,993
	19,630	Children's Place Retail Stores, Inc. (The)*		1,043,727
	26,872	Christopher & Banks Corp.		165,263
	24,049	Coinstar, Inc.*		1,298,165
	45,270	Coldwater Creek, Inc.*		138,074
	17,510	Cracker Barrel Old Country Store, Inc.		897,037
	11,863	DineEquity, Inc.*		592,794
	40,353	Finish Line, Inc. (The), Class A		867,186
	29,674	Fred's, Inc., Class A		414,249
	17,849	Genesco, Inc.*		720,743
	17,987	Group 1 Automotive, Inc.		774,161
	14,011	Haverty Furniture Cos., Inc.		183,544
	21,118	Hibbett Sports, Inc.*		797,838
	33,607	Hot Topic, Inc.		225,503
	29,373	HSN, Inc.*		974,596
	38,358	Jack in the Box, Inc.*		792,093
	20,871	Jos. A. Bank Clothiers, Inc.*		1,094,058
	11,849	Kirkland's, Inc.*		178,801
	16,474	Lithia Motors, Inc., Class A		299,662
	71,439	Liz Claiborne, Inc.*		449,351
	17,733	Lumber Liquidators Holdings, Inc.*		460,171
	17,420	MarineMax, Inc.*		166,535
	39,908	Men's Wearhouse, Inc. (The)		1,113,034
	14,278	O'Charley's, Inc.*		93,378
	64,269	OfficeMax, Inc.*		640,119
	17,253	P.F. Chang's China Bistro, Inc.		691,845
	15,126	Papa John's International, Inc.*		454,688
	39,683	Pep Boys - Manny, Moe & Jack (The)		543,657
	16,974	PetMed Express, Inc.		256,138
	11,773	Red Robin Gourmet Burgers, Inc.*		320,108
	49,077	Ruby Tuesday, Inc.*		515,799
	11,396	Rue21, Inc.*		343,248
	23,317	Ruth's Hospitality Group, Inc.*		114,487
	26,660	Sonic Automotive, Inc., Class A		375,906
	46,577	Sonic Corp.*		522,594
	27,670	Stage Stores, Inc.		532,924
	20,315	Stein Mart, Inc.		221,027
	44,338	Texas Roadhouse, Inc.		721,379
	27,595	Tuesday Morning Corp.*		137,975
	19,323	Vitamin Shoppe, Inc.*		753,984
	17,435	Zale Corp.*		64,161
	15,757	Zumiez, Inc.*		442,929
				27,256,034
		Toys/Games/Hobbies—0.8%
	20,408	JAKKS Pacific, Inc.*		429,384
		Total Common Stocks(Cost $48,383,812)		55,928,011

See Notes to Financial Statements.

7

Schedule of Investments (Continued)

PowerShares S&P SmallCap Consumer Discretionary Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Money Market Fund—0.0%
	13,178	Goldman Sachs Financial Square Prime
		Obligations Institutional Share Class
		(Cost $13,178)	$	13,178
		Total Investments (Cost $48,396,990)—100.0%		55,941,189
		Other assets less liabilities—0.0%		1,972
		Net Assets—100.0%	$	55,943,161

Notes to Schedule of Investments:

*  Non-income producing security.

See Notes to Financial Statements.

8

Portfolio Composition

PowerShares S&P SmallCap Consumer Staples Portfolio

Industry Breakdown (% of the Fund's Net Assets) as of April 30, 2011 (Unaudited)

Food	59.8
Household Products/Wares	10.2
Environmental Control	9.6
Retail	7.5
Agriculture	6.3
Beverages	4.4
Commercial Services	1.5
Exchange Traded Fund	0.6
Money Market Fund	0.0
Other assets less liabilities	0.1

Schedule of Investments

PowerShares S&P SmallCap Consumer Staples Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Common Stocks—99.3%
		Agriculture—6.3%
	116,773	Alliance One International, Inc.*	$	465,924
	21,041	Andersons, Inc. (The)		1,044,686
				1,510,610
		Beverages—4.4%
	11,273	Boston Beer Co., Inc., Class A*		1,062,593
		Commercial Services—1.5%
	17,993	Medifast, Inc.*		355,362
		Environmental Control—9.6%
	141,330	Darling International, Inc.*		2,285,306
		Food—59.8%
	54,576	B&G Foods, Inc.		986,734
	16,165	Calavo Growers, Inc.		339,465
	17,911	Cal-Maine Foods, Inc.		517,449
	17,650	Diamond Foods, Inc.		1,157,840
	52,072	Hain Celestial Group, Inc. (The)*		1,770,968
	19,173	J & J Snack Foods Corp.		974,372
	16,236	Nash Finch Co.		604,304
	21,148	Sanderson Farms, Inc.		1,006,645
	12,274	Seneca Foods Corp., Class A*		343,181
	51,925	Snyders-Lance, Inc.		1,025,519
	30,357	Spartan Stores, Inc.		473,873
	42,902	TreeHouse Foods, Inc.*		2,602,864
	58,336	United Natural Foods, Inc.*		2,490,364
				14,293,578
		Household Products/Wares—10.2%
	70,547	Central Garden & Pet Co., Class A*		706,881
	67,351	Prestige Brands Holdings, Inc.*		777,904
	22,884	WD-40 Co.		949,686
				2,434,471

Number of Shares			Value
		Common Stocks (Continued)
		Retail—7.5%
	45,938	Casey's General Stores, Inc.	$	1,792,960
		Total Common Stocks (Cost $21,455,063)		23,734,880
		Exchange Traded Fund—0.6%
		Equity Fund—0.6%
	4,820	PowerShares Dynamic Consumer Staples Sector Portfolio(~)* (Cost $151,396)		151,348
		Money Market Fund—0.0%
	293	Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $293)		293
		Total Investments (Cost $21,606,752)—99.9%		23,886,521
		Other assets less liabilities—0.1%		18,769
		Net Assets—100.0%	$	23,905,290

Notes to Schedule of Investments:

*  Non-income producing security.

(~)  Affiliated investment. See Note 4.

See Notes to Financial Statements.

9

Portfolio Composition

PowerShares S&P SmallCap Energy Portfolio

Industry Breakdown (% of the Fund's Net Assets) as of April 30, 2011 (Unaudited)

Oil & Gas	47.0
Oil & Gas Services	36.9
Retail	10.4
Transportation	4.8
Exchange Traded Fund	0.9
Liabilities in excess of other assets	(0.0	)

Schedule of Investments

PowerShares S&P SmallCap Energy Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Common Stocks—99.1%
		Oil & Gas—47.0%
	89,299	Contango Oil & Gas Co.*	$	5,529,394
	126,374	GeoResources, Inc.*		3,667,373
	258,277	Gulfport Energy Corp.*		8,791,749
	248,862	Holly Corp.		14,409,110
	316,971	Penn Virginia Corp.		4,900,372
	163,112	Petroleum Development Corp.*		6,495,120
	386,696	PetroQuest Energy, Inc.*		3,387,457
	377,090	Pioneer Drilling Co.*		5,844,895
	281,810	Stone Energy Corp.*		9,964,802
	182,628	Swift Energy Co.*		7,157,191
				70,147,463
		Oil & Gas Services—36.9%
	161,947	Basic Energy Services, Inc.*		4,978,251
	99,738	Gulf Island Fabrication, Inc.		3,524,741
	161,812	Hornbeck Offshore Services, Inc.*		4,729,765
	649,769	ION Geophysical Corp.*		8,213,080
	172,948	Lufkin Industries, Inc.		15,968,289
	183,675	Matrix Service Co.*		2,655,940
	80,089	SEACOR Holdings, Inc.		7,915,196
	487,341	TETRA Technologies, Inc.*		7,198,026
				55,183,288
		Retail—10.4%
	391,779	World Fuel Services Corp.		15,506,613
		Transportation—4.8%
	155,584	Bristow Group, Inc.*		7,219,097
		Total Common Stocks(Cost $133,241,439)		148,056,461

Number of Shares			Value
		Exchange Traded Fund—0.9%
		Equity Fund—0.9%
	30,668	PowerShares Dynamic Energy Sector
		Portfolio(~)*
		(Cost $1,371,899)	$	1,372,393
		Total Investments (Cost $134,613,338)—100.0%		149,428,854
		Liabilities in excess of other assets—(0.0%)		(10,013	)
		Net Assets—100.0%	$	149,418,841

Notes to Schedule of Investments:

*  Non-income producing security.

(~)  Affiliated investment. See Note 4.

See Notes to Financial Statements.

10

Portfolio Composition

PowerShares S&P SmallCap Financials Portfolio

Industry Breakdown (% of the Fund's Net Assets) as of April 30, 2011 (Unaudited)

REITS	41.4
Banks	29.6
Insurance	12.2
Diversified Financial Services	9.1
Retail	4.2
Savings & Loans	1.7
Investment Companies	1.1
Real Estate	0.7
Money Market Fund	0.0
Liabilities in excess of other assets	(0.0	)

Schedule of Investments

PowerShares S&P SmallCap Financials Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Banks—29.6%
	29,573	Bank Mutual Corp.	$	120,954
	8,485	Bank of the Ozarks, Inc.		377,837
	49,381	Boston Private Financial Holdings, Inc.		345,173
	9,934	City Holding Co.		338,749
	25,387	Columbia Banking System, Inc.		478,799
	23,775	Community Bank System, Inc.		594,850
	13,765	First BanCorp*		68,687
	60,971	First Commonwealth Financial Corp.		378,020
	37,448	First Financial Bancorp		617,143
	13,518	First Financial Bankshares, Inc.		749,168
	48,086	First Midwest Bancorp, Inc.		629,927
	46,433	Glacier Bancorp, Inc.		697,888
	22,271	Hancock Holding Co.		727,371
	97,696	Hanmi Financial Corp.*		128,959
	14,156	Home Bancshares, Inc.		339,319
	13,734	Independent Bank Corp.		402,544
	24,543	Nara Bancorp, Inc.*		241,258
	79,083	National Penn Bancshares, Inc.		649,271
	22,298	NBT Bancorp, Inc.		503,935
	61,183	Old National Bancorp		633,244
	21,963	Pinnacle Financial Partners, Inc.*		352,945
	37,746	PrivateBancorp, Inc.		594,122
	16,074	S&T Bancorp, Inc.		328,070
	26,186	Signature Bank*		1,524,287
	11,166	Simmons First National Corp., Class A		294,671
	19,944	Sterling Bancorp		206,420
	65,832	Sterling Bancshares, Inc.		585,246
	83,921	Susquehanna Bancshares, Inc.		773,752
	23,944	Texas Capital Bancshares, Inc.*		617,755
	5,352	Tompkins Financial Corp.		218,040
	49,911	TrustCo Bank Corp. NY		299,466

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	19,351	UMB Financial Corp.	$	814,871
	73,915	Umpqua Holdings Corp.		858,153
	24,786	United Bankshares, Inc.		648,402
	61,180	United Community Banks, Inc.*		146,832
	62,344	Whitney Holding Corp.		844,138
	59,074	Wilmington Trust Corp.		266,424
	12,571	Wilshire Bancorp, Inc.*		50,284
	22,559	Wintrust Financial Corp.		760,013
				19,206,987
		Diversified Financial Services—9.1%
	27,243	Interactive Brokers Group, Inc., Class A		477,842
	26,829	Investment Technology Group, Inc.*		459,044
	23,274	LaBranche & Co., Inc.*		93,794
	28,096	National Financial Partners Corp.*		452,065
	27,438	optionsXpress Holdings, Inc.		505,957
	9,390	Piper Jaffray Cos.*		336,631
	11,034	Portfolio Recovery Associates, Inc.*		995,929
	33,151	Stifel Financial Corp.*		1,514,338
	18,928	SWS Group, Inc.		115,461
	25,837	TradeStation Group, Inc.*		249,327
	10,225	World Acceptance Corp.*		694,789
				5,895,177
		Insurance—12.2%
	11,757	AMERISAFE, Inc.*		262,534
	35,182	Delphi Financial Group, Inc., Class A		1,124,065
	14,341	eHealth, Inc.*		195,038
	24,815	Employers Holdings, Inc.		500,270
	25,655	Horace Mann Educators Corp.		458,711
	8,003	Infinity Property & Casualty Corp.		472,977
	34,399	Meadowbrook Insurance Group, Inc.		352,246
	8,038	Navigators Group, Inc. (The)*		416,610

See Notes to Financial Statements.

11

Schedule of Investments (Continued)

PowerShares S&P SmallCap Financials Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
	13,759	Presidential Life Corp.	$	153,275
	19,676	ProAssurance Corp.*		1,306,486
	10,716	RLI Corp.		634,816
	9,701	Safety Insurance Group, Inc.		454,201
	34,792	Selective Insurance Group, Inc.		613,731
	12,300	Stewart Information Services Corp.		124,722
	26,762	Tower Group, Inc.		612,047
	13,710	United Fire & Casualty Co.		271,458
				7,953,187
		Investment Companies—1.1%
	62,758	Prospect Capital Corp.		759,999
		Real Estate—0.7%
	22,849	Forestar Group, Inc.*		449,440
		REITS—41.4%
	26,010	Acadia Realty Trust		542,308
	84,695	BioMed Realty Trust, Inc.		1,680,349
	30,377	Cedar Shopping Centers, Inc.		179,224
	52,205	Colonial Properties Trust		1,104,658
	107,722	DiamondRock Hospitality Co.		1,296,973
	17,399	EastGroup Properties, Inc.		801,398
	29,983	Entertainment Properties Trust		1,427,491
	56,738	Extra Space Storage, Inc.		1,228,378
	45,704	Franklin Street Properties Corp.		646,255
	16,178	Getty Realty Corp.		411,083
	43,353	Healthcare Realty Trust, Inc.		990,182
	24,499	Home Properties, Inc.		1,553,237
	49,322	Inland Real Estate Corp.		481,876
	37,203	Kilroy Realty Corp.		1,560,294
	40,928	Kite Realty Group Trust		212,826
	53,379	LaSalle Hotel Properties		1,502,085
	81,480	Lexington Realty Trust		813,170
	19,253	LTC Properties, Inc.		566,423
	72,014	Medical Properties Trust, Inc.		888,653
	23,039	Mid-America Apartment Communities, Inc.		1,540,157
	54,032	National Retail Properties, Inc.		1,423,203
	14,191	Parkway Properties, Inc.		254,445
	35,762	Pennsylvania Real Estate Investment Trust		564,682
	31,756	Post Properties, Inc.		1,289,294
	12,109	PS Business Parks, Inc.		729,688
	7,488	Saul Centers, Inc.		327,899
	17,859	Sovran Self Storage, Inc.		764,008
	52,417	Tanger Factory Outlet Centers, Inc.		1,448,282
	8,176	Universal Health Realty Income Trust		352,467
	15,077	Urstadt Biddle Properties, Inc., Class A		296,715
				26,877,703

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
		Retail—4.2%
	19,090	Cash America International, Inc.	$	905,821
	32,205	EZCORP, Inc., Class A*		1,014,135
	20,235	First Cash Financial Services, Inc.*		794,021
				2,713,977
		Savings & Loans—1.7%
	38,169	Brookline Bancorp, Inc.		351,918
	17,882	Dime Community Bancshares		276,456
	33,243	Provident Financial Services, Inc.		482,688
				1,111,062
		Total Common Stocks and OtherEquity Interests(Cost $53,703,172)		64,967,532
		Money Market Fund—0.0%
	15,317	Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $15,317)		15,317
		Total Investments (Cost $53,718,489)—100.0%		64,982,849
		Liabilities in excess of other assets—(0.0%)		(31,756	)
		Net Assets—100.0%	$	64,951,093

Investment Abbreviations:

REIT—Real Estate Investment Trust

Notes to Schedule of Investments:

*  Non-income producing security.

See Notes to Financial Statements.

12

Portfolio Composition

PowerShares S&P SmallCap Health Care Portfolio

Industry Breakdown (% of the Fund's Net Assets) as of April 30, 2011 (Unaudited)

Healthcare - Products	29.3
Healthcare - Services	25.3
Pharmaceuticals	16.4
Commercial Services	9.7
Biotechnology	9.6
Software	4.0
Electronics	3.9
Distribution/Wholesale	1.4
Internet	0.4
Liabilities in excess of other assets	(0.0	)

Schedule of Investments

PowerShares S&P SmallCap Health Care Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Common Stocks—100.0%
		Biotechnology—9.6%
	104,950	ArQule, Inc.*	$	740,947
	70,197	Cambrex Corp.*		369,236
	141,571	Cubist Pharmaceuticals, Inc.*		4,792,178
	51,261	Emergent Biosolutions, Inc.*		1,189,768
	79,967	Enzo Biochem, Inc.*		319,068
	175,661	Regeneron Pharmaceuticals, Inc.*		8,978,034
				16,389,231
		Commercial Services—9.7%
	93,113	AMN Healthcare Services, Inc.*		803,565
	50,305	Chemed Corp.		3,502,737
	15,502	CorVel Corp.*		803,004
	74,063	Cross Country Healthcare, Inc.*		549,548
	66,378	HMS Holdings Corp.*		5,224,612
	35,536	Kendle International, Inc.*		357,137
	22,408	Landauer, Inc.		1,348,289
	139,553	PAREXEL International Corp.*		3,873,991
				16,462,883
		Distribution/Wholesale—1.4%
	29,804	MWI Veterinary Supply, Inc.*		2,478,799
		Electronics—3.9%
	30,510	Analogic Corp.		1,759,511
	41,625	Dionex Corp.*		4,926,319
				6,685,830
		Healthcare - Products—29.3%
	53,626	Abaxis, Inc.*		1,557,835
	167,977	Affymetrix, Inc.*		907,076
	162,935	Align Technology, Inc.*		3,933,251
	182,913	American Medical Systems Holdings, Inc.*		5,395,934
	30,476	Cantel Medical Corp.		790,243
	67,331	CONMED Corp.*		1,890,655

Number of Shares			Value
		Common Stocks (Continued)
	65,969	CryoLife, Inc.*	$	385,259
	58,056	Cyberonics, Inc.*		2,065,052
	55,584	Greatbatch, Inc.*		1,504,659
	60,535	Haemonetics Corp.*		4,249,557
	79,040	Hanger Orthopedic Group, Inc.*		2,147,517
	28,309	ICU Medical, Inc.*		1,277,019
	49,045	Integra LifeSciences Holdings Corp.*		2,565,544
	77,157	Invacare Corp.		2,538,465
	20,299	Kensey Nash Corp.*		501,994
	44,572	LCA-Vision, Inc.*		300,415
	97,556	Meridian Bioscience, Inc.		2,410,609
	67,429	Merit Medical Systems, Inc.*		1,572,444
	68,842	Natus Medical, Inc.*		1,168,249
	45,068	Palomar Medical Technologies, Inc.*		721,539
	131,790	PSS World Medical, Inc.*		3,790,280
	41,647	SurModics, Inc.*		639,698
	85,593	Symmetry Medical, Inc.*		851,650
	79,410	West Pharmaceutical Services, Inc.		3,751,328
	51,978	Zoll Medical Corp.*		2,946,113
				49,862,385
		Healthcare - Services—25.3%
	26,573	Air Methods Corp.*		1,796,866
	19,807	Almost Family, Inc.*		686,709
	70,225	Amedisys, Inc.*		2,339,897
	117,876	AMERIGROUP Corp.*		8,050,931
	74,546	AmSurg Corp., Class A*		2,002,306
	58,355	Bio-Reference Labs, Inc.*		1,471,129
	118,214	Centene Corp.*		4,282,893
	31,274	Ensign Group, Inc. (The)		865,039
	71,144	Gentiva Health Services, Inc.*		1,992,032
	155,614	Healthspring, Inc.*		6,456,425
	81,012	Healthways, Inc.*		1,370,723
	38,870	IPC The Hospitalist Co., Inc.*		2,015,798

See Notes to Financial Statements.

13

Schedule of Investments (Continued)

PowerShares S&P SmallCap Health Care Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Common Stocks (Continued)
	37,359	LHC Group, Inc.*	$	1,106,574
	78,723	Magellan Health Services, Inc.*		4,095,170
	48,360	MedCath Corp.*		653,344
	40,700	Molina Healthcare, Inc.*		1,750,100
	59,335	RehabCare Group, Inc.*		2,229,216
				43,165,152
		Internet—0.4%
	102,805	eResearchTechnology, Inc.*		653,840
		Pharmaceuticals—16.4%
	117,857	Catalyst Health Solutions, Inc.*		7,019,563
	24,293	Hi-Tech Pharmacal Co., Inc.*		671,944
	55,045	Neogen Corp.*		2,306,386
	85,493	Par Pharmaceutical Cos., Inc.*		2,944,379
	69,920	PharMerica Corp.*		920,147
	148,695	Questcor Pharmaceuticals, Inc.*		3,048,247
	138,520	Salix Pharmaceuticals Ltd.*		5,442,451
	168,755	Savient Pharmaceuticals, Inc.*		1,959,246
	186,196	ViroPharma, Inc.*		3,591,721
				27,904,084
		Software—4.0%
	26,104	Computer Programs & Systems, Inc.		1,534,654
	78,514	Omnicell, Inc.*		1,207,545
	45,544	Quality Systems, Inc.		4,086,208
				6,828,407
		Total Investments (Cost $143,829,543)—100.0%		170,430,611
		Liabilities in excess of other assets—(0.0%)		(53,477	)
		Net Assets—100.0%	$	170,377,134

Notes to Schedule of Investments:

*  Non-income producing security.

See Notes to Financial Statements.

14

Portfolio Composition

PowerShares S&P SmallCap Industrials Portfolio

Industry Breakdown (% of the Fund's Net Assets) as of April 30, 2011 (Unaudited)

Aerospace/Defense	17.2
Miscellaneous Manufacturing	15.6
Commercial Services	10.9
Transportation	7.9
Machinery - Diversified	7.8
Electronics	7.1
Engineering & Construction	5.3
Building Materials	5.2
Metal Fabricate/Hardware	4.3
Electrical Components & Equipment	3.6
Housewares	2.5
Distribution/Wholesale	2.3
Airlines	1.9
Environmental Control	1.8
Textiles	1.7
Office Furnishings	1.4
Storage/Warehousing	1.1
Computers	1.0
Machinery - Construction & Mining	0.9
Media	0.4
Household Products/Wares	0.1
Other assets less liabilities	0.0

Schedule of Investments

PowerShares S&P SmallCap Industrials Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Common Stocks—100.0%
		Aerospace/Defense—17.2%
	17,596	AAR Corp.	$	458,200
	6,677	Aerovironment, Inc.*		191,296
	6,995	Cubic Corp.		378,290
	20,540	Curtiss-Wright Corp.		682,955
	13,544	Esterline Technologies Corp.*		972,459
	26,279	GenCorp, Inc.*		171,602
	11,548	Kaman Corp.		429,586
	20,198	Moog, Inc., Class A*		891,136
	2,314	National Presto Industries, Inc.		256,923
	25,858	Orbital Sciences Corp.*		486,906
	16,291	Teledyne Technologies, Inc.*		822,532
	7,307	Triumph Group, Inc.		629,279
				6,371,164
		Airlines—1.9%
	6,659	Allegiant Travel Co.		298,789
	23,908	SkyWest, Inc.		395,199
				693,988
		Building Materials—5.2%
	5,277	AAON, Inc.		173,349
	12,476	Apogee Enterprises, Inc.		178,157

Number of Shares			Value
		Common Stocks (Continued)
	16,809	Comfort Systems USA, Inc.	$	205,238
	13,482	Gibraltar Industries, Inc.*		157,470
	7,613	NCI Building Systems, Inc.*		94,249
	16,630	Quanex Building Products Corp.		348,565
	17,777	Simpson Manufacturing Co., Inc.		496,334
	8,580	Universal Forest Products, Inc.		277,048
				1,930,410
		Commercial Services—10.9%
	21,115	ABM Industries, Inc.		513,517
	5,742	CDI Corp.		85,096
	4,411	Consolidated Graphics, Inc.*		247,678
	28,579	Geo Group, Inc. (The)*		762,488
	29,365	Healthcare Services Group, Inc.		521,522
	7,779	Heidrick & Struggles International, Inc.		182,029
	9,962	Insperity, Inc.		301,749
	12,536	Kelly Services, Inc., Class A*		239,563
	22,883	Navigant Consulting, Inc.*		266,587
	16,216	On Assignment, Inc.*		177,889
	22,664	SFN Group, Inc.*		238,652
	19,560	TrueBlue, Inc.*		275,405
	8,964	Viad Corp.		222,397
				4,034,572

See Notes to Financial Statements.

15

Schedule of Investments (Continued)

PowerShares S&P SmallCap Industrials Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Common Stocks (Continued)
		Computers—1.0%
	18,162	Sykes Enterprises, Inc.*	$	363,785
		Distribution/Wholesale—2.3%
	7,113	School Specialty, Inc.*		105,344
	10,270	United Stationers, Inc.		740,056
				845,400
		Electrical Components & Equipment—3.6%
	21,002	Belden, Inc.		798,706
	8,443	Encore Wire Corp.		235,644
	3,950	Powell Industries, Inc.*		156,104
	8,707	Vicor Corp.		145,494
				1,335,948
		Electronics—7.1%
	4,026	American Science & Engineering, Inc.		354,691
	6,674	Badger Meter, Inc.		253,011
	23,421	Brady Corp., Class A		883,206
	11,328	II-VI, Inc.*		655,325
	12,986	Watts Water Technologies, Inc., Class A		502,558
				2,648,791
		Engineering & Construction—5.3%
	15,618	Dycom Industries, Inc.*		232,083
	29,638	EMCOR Group, Inc.*		917,889
	6,225	Exponent, Inc.*		267,115
	17,473	Insituform Technologies, Inc., Class A*		442,241
	11,975	Orion Marine Group, Inc.*		123,702
				1,983,030
		Environmental Control—1.8%
	27,628	Tetra Tech, Inc.*		652,573
		Household Products/Wares—0.1%
	5,650	Standard Register Co. (The)		19,436
		Housewares—2.5%
	13,796	Toro Co. (The)		936,886
		Machinery - Construction & Mining—0.9%
	8,839	Astec Industries, Inc.*		342,776
		Machinery - Diversified—7.8%
	12,314	Albany International Corp., Class A		311,667
	16,757	Applied Industrial Technologies, Inc.		590,852
	22,323	Briggs & Stratton Corp.		526,600
	4,084	Cascade Corp.		187,047
	5,563	Lindsay Corp.		407,879
	20,184	Robbins & Myers, Inc.		877,399
				2,901,444
		Media—0.4%
	13,532	Dolan Co. (The)*		159,272
		Metal Fabricate/Hardware—4.3%
	7,594	CIRCOR International, Inc.		344,996
	14,546	Kaydon Corp.		562,930

Number of Shares			Value
		Common Stocks (Continued)
	1,779	Lawson Products, Inc.	$	39,191
	16,789	Mueller Industries, Inc.		656,786
				1,603,903
		Miscellaneous Manufacturing—15.6%
	14,842	A.O. Smith Corp.		652,603
	30,454	Actuant Corp., Class A		845,403
	5,543	AZZ, Inc.		242,673
	20,002	Barnes Group, Inc.		494,849
	11,011	Ceradyne, Inc.*		515,975
	22,388	CLARCOR, Inc.		1,011,714
	9,133	EnPro Industries, Inc.*		366,051
	11,781	ESCO Technologies, Inc.		432,127
	27,591	Federal Signal Corp.		186,239
	20,661	Griffon Corp.*		263,221
	12,701	John Bean Technologies Corp.		256,687
	7,599	Lydall, Inc.*		74,090
	5,542	Standex International Corp.		202,616
	10,180	Tredegar Corp.		222,738
				5,766,986
		Office Furnishings—1.4%
	28,506	Interface, Inc., Class A		531,352
		Storage/Warehousing—1.1%
	16,315	Mobile Mini, Inc.*		406,407
		Textiles—1.7%
	8,289	G&K Services, Inc., Class A		274,366
	6,509	UniFirst Corp.		336,906
				611,272
		Transportation—7.9%
	11,269	Arkansas Best Corp.		259,300
	12,923	Forward Air Corp.		434,471
	22,524	Heartland Express, Inc.		388,539
	16,623	Hub Group, Inc., Class A*		669,574
	27,501	Knight Transportation, Inc.		495,293
	18,602	Old Dominion Freight Line, Inc.*		696,087
				2,943,264
		Total Investments (Cost $30,556,607)—100.0%		37,082,659
		Other assets less liabilities—0.0%		1,515
		Net Assets—100.0%	$	37,084,174

Notes to Schedule of Investments:

*  Non-income producing security.

See Notes to Financial Statements.

16

Portfolio Composition

PowerShares S&P SmallCap Information Technology Portfolio

Industry Breakdown (% of the Fund's Net Assets) as of April 30, 2011 (Unaudited)

Semiconductors	22.4
Software	18.9
Electronics	13.8
Telecommunications	11.7
Computers	11.1
Internet	8.3
Commercial Services	6.2
Machinery - Diversified	2.4
Electrical Components & Equipment	1.9
Distribution/Wholesale	1.6
Media	0.9
Home Furnishings	0.8
Money Market Fund	0.0
Liabilities in excess of other assets	(0.0	)

Schedule of Investments

PowerShares S&P SmallCap Information Technology Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Common Stocks—100.0%
		Commercial Services—6.2%
	35,929	Cardtronics, Inc.*	$	763,491
	17,155	Forrester Research, Inc.		677,794
	45,210	Heartland Payment Systems, Inc.		902,392
	20,208	MAXIMUS, Inc.		1,616,438
	14,058	StarTek, Inc.*		76,475
	32,845	TeleTech Holdings, Inc.*		652,630
	45,239	Wright Express Corp.*		2,548,313
				7,237,533
		Computers—11.1%
	23,060	Agilysys, Inc.*		120,373
	35,780	CACI International, Inc., Class A*		2,186,516
	83,520	CIBER, Inc.*		477,734
	27,505	Hutchinson Technology, Inc.*		73,438
	34,429	iGATE Corp.		583,916
	54,560	Insight Enterprises, Inc.*		936,250
	20,782	Integral Systems, Inc.*		259,567
	52,611	LivePerson, Inc.*		702,883
	25,699	Manhattan Associates, Inc.*		929,019
	35,475	Mercury Computer Systems, Inc.*		685,022
	18,054	MTS Systems Corp.		799,251
	9,331	NCI, Inc., Class A*		229,636
	41,253	NetScout Systems, Inc.*		1,055,664
	39,476	Radiant Systems, Inc.*		786,362
	28,658	RadiSys Corp.*		252,477
	24,818	Stratasys, Inc.*		1,336,449
	29,842	Super Micro Computer, Inc.*		509,105
	39,893	Synaptics, Inc.*		1,133,759
				13,057,421

Number of Shares			Value
		Common Stocks (Continued)
		Distribution/Wholesale—1.6%
	79,998	Brightpoint, Inc.*	$	809,580
	31,650	ScanSource, Inc.*		1,132,120
				1,941,700
		Electrical Components & Equipment—1.9%
	45,512	Advanced Energy Industries, Inc.*		643,995
	26,541	Littelfuse, Inc.		1,651,115
				2,295,110
		Electronics—13.8%
	13,769	Bel Fuse, Inc., Class B		277,170
	71,961	Benchmark Electronics, Inc.*		1,216,141
	46,931	Checkpoint Systems, Inc.*		988,367
	40,395	CTS Corp.		443,941
	35,487	Cymer, Inc.*		1,707,280
	41,576	Daktronics, Inc.		446,111
	28,200	Electro Scientific Industries, Inc.*		463,890
	19,084	FARO Technologies, Inc.*		823,856
	45,386	FEI Co.*		1,473,230
	21,532	LoJack Corp.*		98,617
	43,473	Methode Electronics, Inc.		537,326
	43,509	Newport Corp.*		814,924
	22,282	OSI Systems, Inc.*		855,406
	24,326	Park Electrochemical Corp.		777,702
	47,707	Plexus Corp.*		1,740,828
	48,831	Pulse Electronics Corp.		292,009
	33,580	Rofin-Sinar Technologies, Inc.*		1,454,350
	18,681	Rogers Corp.*		775,635
	50,887	TTM Technologies, Inc.*		972,959
				16,159,742

See Notes to Financial Statements.

17

Schedule of Investments (Continued)

PowerShares S&P SmallCap Information Technology Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Common Stocks (Continued)
		Home Furnishings—0.8%
	20,406	DTS, Inc.*	$	899,088
		Internet—8.3%
	51,191	Blue Coat Systems, Inc.*		1,474,301
	29,956	comScore, Inc.*		892,988
	48,088	DealerTrack Holdings, Inc.*		1,080,057
	42,529	InfoSpace, Inc.*		382,761
	54,000	j2 Global Communications, Inc.*		1,590,840
	37,201	Knot, Inc. (The)*		379,822
	20,457	Liquidity Services, Inc.*		397,889
	21,521	PC-Tel, Inc.*		157,103
	34,862	Perficient, Inc.*		435,427
	32,965	Sourcefire, Inc.*		877,528
	14,014	Stamps.com, Inc.		189,469
	103,578	United Online, Inc.		683,615
	47,803	Websense, Inc.*		1,232,839
				9,774,639
		Machinery - Diversified—2.4%
	48,508	Cognex Corp.		1,517,330
	29,587	Gerber Scientific, Inc.*		282,852
	56,719	Intermec, Inc.*		651,134
	26,787	Intevac, Inc.*		327,605
				2,778,921
		Media—0.9%
	28,269	DG Fastchannel, Inc.*		1,034,363
		Semiconductors—22.4%
	37,162	ATMI, Inc.*		739,895
	76,987	Brooks Automation, Inc.*		941,551
	27,357	Cabot Microelectronics Corp.*		1,336,389
	25,898	CEVA, Inc.*		791,961
	28,250	Cohu, Inc.		407,083
	42,704	Diodes, Inc.*		1,461,331
	27,491	DSP Group, Inc.*		222,127
	52,389	Exar Corp.*		320,097
	29,426	Hittite Microwave Corp.*		1,894,740
	76,380	Kopin Corp.*		367,388
	84,039	Kulicke & Soffa Industries, Inc.*		761,393
	59,070	Micrel, Inc.		756,687
	100,921	Microsemi Corp.*		2,381,736
	60,888	MKS Instruments, Inc.		1,728,001
	41,564	Monolithic Power Systems, Inc.*		705,757
	29,372	Pericom Semiconductor Corp.*		266,991
	33,818	Power Integrations, Inc.		1,364,218
	37,006	Rudolph Technologies, Inc.*		418,538
	32,497	Sigma Designs, Inc.*		414,662
	26,919	Standard Microsystems Corp.*		730,851
	15,281	Supertex, Inc.*		329,917
	60,072	Tessera Technologies, Inc.*		1,187,023

Number of Shares			Value
		Common Stocks (Continued)
	191,481	TriQuint Semiconductor, Inc.*	$	2,636,693
	29,518	Ultratech, Inc.*		924,209
	47,801	Veeco Instruments, Inc.*		2,444,065
	28,704	Volterra Semiconductor Corp.*		754,628
				26,287,931
		Software—18.9%
	34,111	Avid Technology, Inc.*		633,782
	52,373	Blackbaud, Inc.		1,448,637
	39,089	Bottomline Technologies, Inc.*		1,085,892
	51,306	CommVault Systems, Inc.*		2,020,943
	40,753	CSG Systems International, Inc.*		865,594
	29,654	Digi International, Inc.*		350,214
	45,234	Ebix, Inc.*		1,033,597
	54,436	Epicor Software Corp.*		680,450
	36,870	EPIQ Systems, Inc.		524,660
	15,723	Interactive Intelligence, Inc.*		588,355
	49,687	JDA Software Group, Inc.*		1,628,243
	9,662	MicroStrategy, Inc., Class A*		1,365,241
	78,967	Progress Software Corp.*		2,341,372
	28,019	RightNow Technologies, Inc.*		1,013,727
	36,219	Smith Micro Software, Inc.*		279,611
	29,544	Synchronoss Technologies, Inc.*		953,089
	28,203	SYNNEX Corp.*		945,647
	100,661	Take-Two Interactive Software, Inc.*		1,628,695
	48,027	Taleo Corp., Class A*		1,741,939
	80,080	THQ, Inc.*		323,523
	29,363	Tyler Technologies, Inc.*		727,909
				22,181,120
		Telecommunications—11.7%
	33,378	Anixter International, Inc.		2,508,023
	142,901	Arris Group, Inc.*		1,714,812
	20,907	Black Box Corp.		730,490
	32,336	Comtech Telecommunications Corp.		915,109
	18,019	EMS Technologies, Inc.*		455,160
	116,596	Harmonic, Inc.*		965,415
	19,434	LogMeIn, Inc.*		837,022
	42,805	NETGEAR, Inc.*		1,787,109
	35,567	Network Equipment Technologies, Inc.*		119,861
	37,234	Novatel Wireless, Inc.*		230,851
	23,448	Oplink Communications, Inc.*		464,270
	51,146	Symmetricom, Inc.*		311,991
	80,835	Tekelec*		674,972
	12,551	Tollgrade Communications, Inc.*		126,640
	48,957	ViaSat, Inc.*		1,954,363
				13,796,088
		Total Common Stocks (Cost $102,079,093)		117,443,656

See Notes to Financial Statements.

18

Schedule of Investments (Continued)

PowerShares S&P SmallCap Information Technology Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Money Market Fund—0.0%
	11,493	Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $11,493)	$	11,493
		Total Investments (Cost $102,090,586)—100.0%		117,455,149
		Liabilities in excess of other assets—(0.0%)		(10,872	)
		Net Assets—100.0%	$	117,444,277

Notes to Schedule of Investments:

*  Non-income producing security.

See Notes to Financial Statements.

19

Portfolio Composition

PowerShares S&P SmallCap Materials Portfolio

Industry Breakdown (% of the Fund's Net Assets) as of April 30, 2011 (Unaudited)

Chemicals	34.0
Forest Products & Paper	19.7
Mining	14.6
Miscellaneous Manufacturing	10.6
Building Materials	9.8
Metal Fabricate/Hardware	6.2
Environmental Control	3.8
Energy - Alternate Sources	1.3
Liabilities in excess of other assets	(0.0	)

Schedule of Investments

PowerShares S&P SmallCap Materials Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Common Stocks—100.0%
		Building Materials—9.8%
	5,384	Eagle Materials, Inc.	$	156,621
	3,390	Texas Industries, Inc.		142,956
				299,577
		Chemicals—34.0%
	3,836	A. Schulman, Inc.		97,127
	2,608	American Vanguard Corp.		23,263
	3,063	Arch Chemicals, Inc.		118,446
	3,504	Balchem Corp.		139,074
	5,987	H.B. Fuller Co.		130,816
	1,043	Hawkins, Inc.		49,063
	3,761	OM Group, Inc.*		136,299
	11,453	PolyOne Corp.		165,839
	1,401	Quaker Chemical Corp.		63,297
	948	Stepan Co.		68,228
	2,660	Zep, Inc.		50,540
				1,041,992
		Energy - Alternate Sources—1.3%
	7,399	Headwaters, Inc.*		40,399
		Environmental Control—3.8%
	6,870	Calgon Carbon Corp.*		117,889
		Forest Products & Paper—19.7%
	4,706	Buckeye Technologies, Inc.		132,521
	1,398	Clearwater Paper Corp.*		109,715
	1,310	Deltic Timber Corp.		88,818
	4,651	KapStone Paper and Packaging Corp.*		80,834
	1,812	Neenah Paper, Inc.		42,274
	2,103	Schweitzer-Mauduit International, Inc.		109,020
	5,986	Wausau Paper Corp.		40,405
				603,587

Number of Shares			Value
		Common Stocks (Continued)
		Metal Fabricate/Hardware—6.2%
	2,041	A.M. Castle & Co.*	$	38,534
	1,115	Olympic Steel, Inc.		32,747
	3,674	RTI International Metals, Inc.*		117,348
				188,629
		Mining—14.6%
	3,092	AMCOL International Corp.		115,085
	6,890	Century Aluminum Co.*		137,662
	1,802	Kaiser Aluminum Corp.		90,298
	2,480	Materion Corp.*		103,565
				446,610
		Miscellaneous Manufacturing—10.6%
	2,506	Koppers Holdings, Inc.		114,599
	1,984	LSB Industries, Inc.*		80,055
	4,302	Myers Industries, Inc.		45,902
	5,038	STR Holdings, Inc.*		82,976
				323,532
		Total Investments (Cost $2,807,805)—100.0%		3,062,215
		Liabilities in excess of other assets—(0.0%)		(550	)
		Net Assets—100.0%	$	3,061,665

Notes to Schedule of Investments:

*  Non-income producing security.

See Notes to Financial Statements.

20

Portfolio Composition

PowerShares S&P SmallCap Utilities Portfolio

Industry Breakdown (% of the Fund's Net Assets) as of April 30, 2011 (Unaudited)

Gas	42.0
Electric	36.3
Telecommunications	18.0
Water	3.7
Other assets less liabilities	0.0

Schedule of Investments

PowerShares S&P SmallCap Utilities Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Common Stocks—100.0%
		Electric—36.3%
	53,176	ALLETE, Inc.	$	2,153,096
	89,087	Avista Corp.		2,169,268
	35,010	Central Vermont Public Service Corp.		819,584
	41,343	CH Energy Group, Inc.		2,216,812
	70,542	El Paso Electric Co.*		2,185,391
	68,764	NorthWestern Corp.		2,238,268
	104,797	UIL Holdings Corp.		3,334,641
	57,774	Unisource Energy Corp.		2,145,149
				17,262,209
		Gas—42.0%
	54,131	Laclede Group, Inc. (The)		2,077,007
	86,013	New Jersey Resources Corp.		3,765,649
	42,980	Northwest Natural Gas Co.		1,987,395
	150,403	Piedmont Natural Gas Co., Inc.		4,775,295
	62,062	South Jersey Industries, Inc.		3,565,462
	95,082	Southwest Gas Corp.		3,781,411
				19,952,219
		Telecommunications—18.0%
	24,229	Atlantic Tele-Network, Inc.		889,931
	82,317	Cbeyond, Inc.*		1,050,365
	530,777	Cincinnati Bell, Inc.*		1,587,023
	103,742	General Communication, Inc., Class A*		1,193,033
	88,653	Neutral Tandem, Inc.*		1,355,505
	79,578	NTELOS Holdings Corp.		1,570,074
	58,933	USA Mobility, Inc.		910,515
				8,556,446
		Water—3.7%
	49,721	American States Water Co.		1,735,760
		Total Investments (Cost $41,733,031)—100.0%		47,506,634
		Other assets less liabilities—0.0%		19,505
		Net Assets—100.0%	$	47,526,139

Notes to Schedule of Investments:

*  Non-income producing security.

See Notes to Financial Statements.

21

Statements of Assets and Liabilities

April 30, 2011 (Unaudited)

	PowerShares S&P SmallCap Consumer Discretionary Portfolio		PowerShares S&P SmallCap Consumer Staples Portfolio			PowerShares S&P SmallCap Energy Portfolio			PowerShares S&P SmallCap Financials Portfolio		PowerShares S&P SmallCap Health Care Portfolio
ASSETS:
Unaffiliated investments, at value	$	55,941,189	$	23,735,173		$	148,056,461		$	64,982,849	$	170,430,611
Affiliated investments, at value (Note 5)		—		151,348			1,372,393			—		—
Total investments, at value		55,941,189		23,886,521			149,428,854			64,982,849		170,430,611
Cash		2,563		—			18,389			—		—
Receivables:
Dividends and interest		11,444		22,534			1			57,602		31,923
Investments sold		—		152,776			14,507,846			51,151		—
Shares sold		—		—			12,246,423			—		6,873,374
Other assets		—		—			—			—		—
Total Assets		55,955,196		24,061,831			176,201,513			65,091,602		177,335,908
LIABILITIES:
Due to custodian		—		341			—			—		43,198
Payables:
Shares repurchased		—		—			12,246,423			—		—
Investments purchased		—		151,396			14,501,788			125,487		6,880,237
Accrued unitary management fees		12,035		4,804			34,461			15,022		35,339
Total Liabilities		12,035		156,541			26,782,672			140,509		6,958,774
NET ASSETS	$	55,943,161	$	23,905,290		$	149,418,841		$	64,951,093	$	170,377,134
NET ASSETS CONSIST OF:
Shares of beneficial interest	$	46,362,820	$	21,822,647		$	127,278,085		$	53,252,564	$	142,651,045
Undistributed net investment income (loss)		81,316		67,036			(225,130	)		294,829		(421,482	)
Undistributed net realized gain (loss)		1,954,826		(264,162	)		7,550,370			139,340		1,546,503
Net unrealized appreciation		7,544,199		2,279,769			14,815,516			11,264,360		26,601,068
Net Assets	$	55,943,161	$	23,905,290		$	149,418,841		$	64,951,093	$	170,377,134
Shares outstanding (unlimited amount authorized, $0.01 par value)		1,900,000		750,000			3,600,000			2,250,000		5,000,000
Net asset value	$	29.44	$	31.87		$	41.51		$	28.87	$	34.08
Share price	$	29.49	$	31.90		$	41.48		$	28.89	$	34.10
Unaffiliated investments, at cost	$	48,396,990	$	21,455,356		$	133,241,439		$	53,718,489	$	143,829,543
Affiliated investments, at cost	$	—	$	151,396		$	1,371,899		$	—	$	—
Total investments, at cost	$	48,396,990	$	21,606,752		$	134,613,338		$	53,718,489	$	143,829,543

See Notes to Financial Statements.

22

	PowerShares S&P SmallCap Industrials Portfolio		PowerShares S&P SmallCap Information Technology Portfolio			PowerShares S&P SmallCap Materials Portfolio			PowerShares S&P SmallCap Utilities Portfolio
ASSETS:
Unaffiliated investments, at value	$	37,082,659	$	117,455,149		$	3,062,215		$	47,506,634
Affiliated investments, at value (Note 5)		—		—			—			—
Total investments, at value		37,082,659		117,455,149			3,062,215			47,506,634
Cash		—		4,000			—			—
Receivables:
Dividends and interest		14,088		12,270			2,354			49,052
Investments sold		—		—			46,676			—
Shares sold		—		3,233,991			—			—
Other assets		—		—			606			—
Total Assets		37,096,747		120,705,410			3,111,851			47,555,686
LIABILITIES:
Due to custodian		3,866		—			1,498			18,600
Payables:
Shares repurchased		—		—			—			—
Investments purchased		—		3,235,351			47,973			—
Accrued unitary management fees		8,707		25,782			715			10,947
Total Liabilities		12,573		3,261,133			50,186			29,547
NET ASSETS	$	37,084,174	$	117,444,277		$	3,061,665		$	47,526,139
NET ASSETS CONSIST OF:
Shares of beneficial interest	$	29,729,770	$	99,366,003		$	2,380,890		$	41,412,867
Undistributed net investment income (loss)		16,755		(84,750	)		(5,810	)		175,894
Undistributed net realized gain (loss)		811,597		2,798,461			432,175			163,775
Net unrealized appreciation		6,526,052		15,364,563			254,410			5,773,603
Net Assets	$	37,084,174	$	117,444,277		$	3,061,665		$	47,526,139
Shares outstanding (unlimited amount authorized, $0.01 par value)		1,200,000		3,600,000			100,000			1,600,000
Net asset value	$	30.90	$	32.62		$	30.62		$	29.70
Share price	$	30.89	$	32.68		$	30.62		$	29.70
Unaffiliated investments, at cost	$	30,556,607	$	102,090,586		$	2,807,805		$	41,733,031
Affiliated investments, at cost	$	—	$	—		$	—		$	—
Total investments, at cost	$	30,556,607	$	102,090,586		$	2,807,805		$	41,733,031

23

Statements of Operations

For the Six Months Ended April 30, 2011 (Unaudited)

	PowerShares S&P SmallCap Consumer Discretionary Portfolio			PowerShares S&P SmallCap Consumer Staples Portfolio			PowerShares S&P SmallCap Energy Portfolio			PowerShares S&P SmallCap Financials Portfolio			PowerShares S&P SmallCap Health Care Portfolio
INVESTMENT INCOME:
Dividend income	$	199,548		$	109,354		$	317,102		$	864,663		$	97,641
EXPENSES:
Unitary management fees		61,620			17,685			105,747			82,854			109,933
Other expenses		—			—			—			—			—
Total Expenses		61,620			17,685			105,747			82,854			109,933
Net Investment Income (Loss)		137,928			91,669			211,355			781,809			(12,292	)
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) from:
Investments		(46,758	)		(227,255	)		(997,398	)		(80,186	)		950,008
In-kind redemptions		2,098,108			—			8,575,729			291,972			540,877
Net realized gain (loss)		2,051,350			(227,255	)		7,578,331			211,786			1,490,885
Net change in unrealized appreciation on:
Investments		4,532,436			1,983,025			14,709,673			7,816,853			25,400,771
Net realized and unrealized gain		6,583,786			1,755,770			22,288,004			8,028,639			26,891,656
Net increase in net assets resulting from operations	$	6,721,714		$	1,847,439		$	22,499,359		$	8,810,448		$	26,879,364

See Notes to Financial Statements.

24

	PowerShares S&P SmallCap Industrials Portfolio		PowerShares S&P SmallCap Information Technology Portfolio			PowerShares S&P SmallCap Materials Portfolio			PowerShares S&P SmallCap Utilities Portfolio
INVESTMENT INCOME:
Dividend income	$	159,248	$	110,516		$	18,044		$	726,046
EXPENSES:
Unitary management fees		48,247		102,730			5,694			61,098
Other expenses		—		—			89			—
Total Expenses		48,247		102,730			5,783			61,098
Net Investment Income (Loss)		111,001		7,786			12,261			664,948
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) from:
Investments		51,737		(174,182	)		(21,857	)		(107,426	)
In-kind redemptions		733,539		3,096,171			441,054			291,690
Net realized gain (loss)		785,276		2,921,989			419,197			184,264
Net change in unrealized appreciation on:
Investments		4,467,636		10,707,610			233,919			3,146,210
Net realized and unrealized gain		5,252,912		13,629,599			653,116			3,330,474
Net increase in net assets resulting from operations	$	5,363,913	$	13,637,385		$	665,377		$	3,995,422

25

Statements of Changes in Net Assets

	PowerShares S&P SmallCap Consumer Discretionary Portfolio						PowerShares S&P SmallCap Consumer Staples Portfolio						PowerShares S&P SmallCap Energy Portfolio
	Six Months Ended April 30, 2011 (Unaudited)			For the Period April 5, 2010* through October 31, 2010			Six Months Ended April 30, 2011 (Unaudited)			For the Period April 5, 2010* through October 31, 2010			Six Months Ended April 30, 2011 (Unaudited)			For the Period April 5, 2010* through October 31, 2010
OPERATIONS:
Net investment income (loss)	$	137,928		$	32,743		$	91,669		$	15,118		$	211,355		$	566
Net realized gain (loss)		2,051,350			(45,636	)		(227,255	)		231,940			7,578,331			192,251
Net change in unrealized appreciation		4,532,436			3,011,763			1,983,025			296,744			14,709,673			105,843
Net increase (decrease) in net assets resulting from operations		6,721,714			2,998,870			1,847,439			543,802			22,499,359			298,660
Undistributed net investment income (loss) included in the price of units issued and redeemed		45,927			64,204			66,428			3,077			62,857			1,248
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income		(135,282	)		—			(97,332	)		(8,847	)		(499,908	)		—
Total distributions to shareholders		(135,282	)		—			(97,332	)		(8,847	)		(499,908	)		—
SHAREHOLDER TRANSACTIONS:
Proceeds from shares sold		27,750,255			31,696,923			16,670,277			11,574,144			164,302,481			13,636,095
Value of shares repurchased		(9,599,246	)		(3,490,073	)		—			(6,624,193	)		(44,781,791	)		(6,036,055	)
Net income equalization		(45,927	)		(64,204	)		(66,428	)		(3,077	)		(62,857	)		(1,248	)
Net increase in net assets resulting from shares transactions		18,105,082			28,142,646			16,603,849			4,946,874			119,457,833			7,598,792
Increase in Net Assets		24,737,441			31,205,720			18,420,384			5,484,906			141,520,141			7,898,700
NET ASSETS:
Beginning of period		31,205,720			—			5,484,906			—			7,898,700			—
End of period	$	55,943,161		$	31,205,720		$	23,905,290		$	5,484,906		$	149,418,841		$	7,898,700
Undistributed net investment income (loss) at end of period	$	81,316		$	32,743		$	67,036		$	6,271		$	(225,130	)	$	566
CHANGES IN SHARES OUTSTANDING:
Shares sold		1,000,000			1,400,000			550,000			450,000			4,450,000			550,000
Shares repurchased		(350,000	)		(150,000	)		—			(250,000	)		(1,150,000	)		(250,000	)
Shares outstanding, beginning of period		1,250,000			—			200,000			—			300,000			—
Shares outstanding, end of period		1,900,000			1,250,000			750,000			200,000			3,600,000			300,000

*  Commencement of Investment Operations.

See Notes to Financial Statements.

26

	PowerShares S&P SmallCap Financials Portfolio						PowerShares S&P SmallCap Health Care Portfolio						PowerShares S&P SmallCap Industrials Portfolio
	Six Months Ended April 30, 2011 (Unaudited)			For the Period April 5, 2010* through October 31, 2010			Six Months Ended April 30, 2011 (Unaudited)			For the Period April 5, 2010* through October 31, 2010			Six Months Ended April 30, 2011 (Unaudited)			For the Period April 5, 2010* through October 31, 2010
OPERATIONS:
Net investment income (loss)	$	781,809		$	212,411		$	(12,292	)	$	(12,299	)	$	111,001		$	53,147
Net realized gain (loss)		211,786			(246,373	)		1,490,885			55,512			785,276			(62,480	)
Net change in unrealized appreciation		7,816,853			3,447,507			25,400,771			1,200,297			4,467,636			2,058,416
Net increase (decrease) in net assets resulting from operations		8,810,448			3,413,545			26,879,364			1,243,510			5,363,913			2,049,083
Undistributed net investment income (loss) included in the price of units issued and redeemed		26,380			89,663			(271,476	)		(1,682	)		39,170			27,887
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income		(682,194	)		(43,577	)		(137,714	)		—			(184,052	)		(2,511	)
Total distributions to shareholders		(682,194	)		(43,577	)		(137,714	)		—			(184,052	)		(2,511	)
SHAREHOLDER TRANSACTIONS:
Proceeds from shares sold		10,676,568			53,893,792			105,072,020			49,181,669			12,917,889			24,826,069
Value of shares repurchased		(3,933,610	)		(7,183,879	)		(7,000,877	)		(4,860,838	)		(3,007,931	)		(4,878,286	)
Net income equalization		(26,380	)		(89,663	)		271,476			1,682			(39,170	)		(27,887	)
Net increase in net assets resulting from shares transactions		6,716,578			46,620,250			98,342,619			44,322,513			9,870,788			19,919,896
Increase in Net Assets		14,871,212			50,079,881			124,812,793			45,564,341			15,089,819			21,994,355
NET ASSETS:
Beginning of period		50,079,881			—			45,564,341			—			21,994,355			—
End of period	$	64,951,093		$	50,079,881		$	170,377,134		$	45,564,341		$	37,084,174		$	21,994,355
Undistributed net investment income (loss) at end of period	$	294,829		$	168,834		$	(421,482	)	$	—		$	16,755		$	50,636
CHANGES IN SHARES OUTSTANDING:
Shares sold		400,000			2,300,000			3,450,000			2,000,000			450,000			1,050,000
Shares repurchased		(150,000	)		(300,000	)		(250,000	)		(200,000	)		(100,000	)		(200,000	)
Shares outstanding, beginning of period		2,000,000			—			1,800,000			—			850,000			—
Shares outstanding, end of period		2,250,000			2,000,000			5,000,000			1,800,000			1,200,000			850,000

27

Statements of Changes in Net Assets (Continued)

	PowerShares S&P SmallCap Information Technology Portfolio						PowerShares S&P SmallCap Materials Portfolio
	Six Months Ended April 30, 2011 (Unaudited)			For the Period April 5, 2010* through October 31, 2010			Six Months Ended April 30, 2011 (Unaudited)			For the Period April 5, 2010* through October 31, 2010
OPERATIONS:
Net investment income (loss)	$	7,786		$	32,377		$	12,261		$	11,146
Net realized gain (loss)		2,921,989			(237,164	)		419,197			(148,696	)
Net change in unrealized appreciation		10,707,610			4,656,953			233,919			20,491
Net increase (decrease) in net assets resulting from operations		13,637,385			4,452,166			665,377			(117,059	)
Undistributed net investment income (loss) included in the price of units issued and redeemed		(23,168	)		(5,017	)		123			(1,769	)
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income		(101,745	)		—			(20,930	)		(8,410	)
Total distributions to shareholders		(101,745	)		—			(20,930	)		(8,410	)
SHAREHOLDER TRANSACTIONS:
Proceeds from shares sold		87,489,029			35,903,305			5,557,854			5,028,730
Value of shares repurchased		(19,206,505	)		(4,729,358	)		(5,762,995	)		(2,280,902	)
Net income equalization		23,168			5,017			(123	)		1,769
Net increase (decrease) in net assets resulting from shares transactions		68,305,692			31,178,964			(205,264	)		2,749,597
Increase in Net Assets		81,818,164			35,626,113			439,306			2,622,359
NET ASSETS:
Beginning of period		35,626,113			—			2,622,359			—
End of period	$	117,444,277		$	35,626,113		$	3,061,665		$	2,622,359
Undistributed net investment income (loss) at end of period	$	(84,750	)	$	32,377		$	(5,810	)	$	2,736
CHANGES IN SHARES OUTSTANDING:
Shares sold		2,900,000			1,550,000			200,000			200,000
Shares repurchased		(650,000	)		(200,000	)		(200,000	)		(100,000	)
Shares outstanding, beginning of period		1,350,000			—			100,000			—
Shares outstanding, end of period		3,600,000			1,350,000			100,000			100,000

*  Commencement of Investment Operations.

See Notes to Financial Statements.

28

	PowerShares S&P SmallCap Utilities Portfolio
	Six Months Ended April 30, 2011 (Unaudited)			For the Period April 5, 2010* through October 31, 2010
OPERATIONS:
Net investment income (loss)	$	664,948		$	255,030
Net realized gain (loss)		184,264			19,283
Net change in unrealized appreciation		3,146,210			2,627,393
Net increase (decrease) in net assets resulting from operations		3,995,422			2,901,706
Undistributed net investment income (loss) included in the price of units issued and redeemed		12,402			80,522
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income		(716,638	)		(39,848	)
Total distributions to shareholders		(716,638	)		(39,848	)
SHAREHOLDER TRANSACTIONS:
Proceeds from shares sold		9,987,147			40,677,310
Value of shares repurchased		(4,240,289	)		(5,038,671	)
Net income equalization		(12,402	)		(80,522	)
Net increase (decrease) in net assets resulting from shares transactions		5,734,456			35,558,117
Increase in Net Assets		9,025,642			38,500,497
NET ASSETS:
Beginning of period		38,500,497			—
End of period	$	47,526,139		$	38,500,497
Undistributed net investment income (loss) at end of period	$	175,894		$	215,182
CHANGES IN SHARES OUTSTANDING:
Shares sold		350,000			1,600,000
Shares repurchased		(150,000	)		(200,000	)
Shares outstanding, beginning of period		1,400,000			—
Shares outstanding, end of period		1,600,000			1,400,000

29

Financial Highlights

PowerShares S&P SmallCap Consumer Discretionary Portfolio

	Six Months Ended April 30, 2011 (Unaudited)			For the Period April 5, 2010* through October 31, 2010
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	24.96		$	25.61
Net investment income**		0.09			0.05
Net realized and unrealized gain (loss) on investments		4.49			(0.70	)>
Total from investment operations		4.58			(0.65	)
Distributions to shareholders from:
Net investment income		(0.10	)		—
Net asset value at end of period	$	29.44		$	24.96
Share price at end of period***	$	29.49		$	24.96
NET ASSET VALUE, TOTAL RETURN****		18.35	%		(2.54	)%(a)
SHARE PRICE TOTAL RETURN****		18.55	%		(2.54	)%(a)
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	55,943		$	31,206
Ratio to average net assets of:
Expenses		0.29	%†		0.29	%†
Net investment income		0.65	%†		0.41	%†
Portfolio turnover rate ††		3	%		6	%
Undistributed net investment income included in price of units issued and redeemed**#	$	0.03		$	0.10

PowerShares S&P SmallCap Consumer Staples Portfolio

	Six Months Ended April 30, 2011 (Unaudited)			For the Period April 5, 2010* through October 31, 2010
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	27.42		$	25.40
Net investment income**		0.22			0.09
Net realized and unrealized gain on investments		4.47			1.98
Total from investment operations		4.69			2.07
Distributions to shareholders from:
Net investment income		(0.24	)		(0.05	)
Net asset value at end of period	$	31.87		$	27.42
Share price at end of period***	$	31.90		$	27.44
NET ASSET VALUE, TOTAL RETURN****		17.18	%		8.15	%(b)
SHARE PRICE TOTAL RETURN****		17.21	%		8.23	%(b)
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	23,905		$	5,485
Ratio to average net assets of:
Expenses		0.29	%†		0.29	%†
Net investment income		1.50	%†		0.61	%†
Portfolio turnover rate ††		20	%		10	%
Undistributed net investment income included in price of units issued and redeemed**#	$	0.16		$	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 the 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.

>  Due to the timing of creations and redemptions of capital shares, the net realized and unrealized gain (loss) per share is not in accord with the Fund's change in net realized and unrealized gain (loss) on investment securities and in-kind transactions for the period.

†  Annualized.

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

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

(a)  The net asset value total return from Fund Inception (April 7, 2010, first day of trading on the exchange) to October 31, 2010 was (3.37)%. The share price total return from Fund inception to October 31, 2010 was (3.29)%.

(b)  The net asset value total return from Fund Inception (April 7, 2010, first day of trading on the exchange) to October 31, 2010 was 8.15%. The share price total return from Fund inception to October 31, 2010 was 8.23%.

See Notes to Financial Statements.

30

Financial Highlights (Continued)

PowerShares S&P SmallCap Energy Portfolio

	Six Months Ended April 30, 2011 (Unaudited)			For the Period April 5, 2010* through October 31, 2010
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	26.33		$	25.76
Net investment income**		0.11			0.00	(a)
Net realized and unrealized gain on investments		15.49			0.57
Total from investment operations		15.60			0.57
Distributions to shareholders from:
Net investment income		(0.42	)		—
Net asset value at end of period	$	41.51		$	26.33
Share price at end of period***	$	41.48		$	26.33
NET ASSET VALUE, TOTAL RETURN****		59.68	%		2.21	%(b)
SHARE PRICE TOTAL RETURN****		59.56	%		2.21	%(b)
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	149,419		$	7,899
Ratio to average net assets of:
Expenses		0.29	%†		0.29	%†
Net investment income		0.58	%†		0.02	%†
Portfolio turnover rate ††		16	%		13	%
Undistributed net investment income included in price of units issued and redeemed**#	$	0.03		$	0.01

PowerShares S&P SmallCap Financials Portfolio

	Six Months Ended April 30, 2011 (Unaudited)			For the Period April 5, 2010* through October 31, 2010
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	25.04		$	25.41
Net investment income**		0.37			0.24
Net realized and unrealized gain (loss) on investments		3.79			(0.46	)>
Total from investment operations		4.16			(0.22	)
Distributions to shareholders from:
Net investment income		(0.33	)		(0.15	)
Net asset value at end of period	$	28.87		$	25.04
Share price at end of period***	$	28.89		$	25.02
NET ASSET VALUE, TOTAL RETURN****		16.73	%		(0.84	)%(c)
SHARE PRICE TOTAL RETURN****		16.91	%		(0.92	)%(c)
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	64,951		$	50,080
Ratio to average net assets of:
Expenses		0.29	%†		0.29	%†
Net investment income		2.74	%†		1.90	%†
Portfolio turnover rate ††		5	%		5	%
Undistributed net investment income included in price of units issued and redeemed**#	$	0.01		$	0.10

*  Commencement of Investment Operations.

**  Based on average shares outstanding.

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

****  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 the 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.

>  Due to the timing of creations and redemptions of capital shares, the net realized and unrealized gain (loss) per share is not in accord with the Fund's change in net realized and unrealized gain (loss) on investment securities and in-kind transactions for the period.

(a)  Amount represents less than $0.005.

(b)  The net asset value total return from Fund Inception (April 7, 2010, first day of trading on the exchange) to October 31, 2010 was 2.89%. The share price total return from Fund inception to October 31, 2010 was 3.05%.

(c)  The net asset value total return from Fund Inception (April 7, 2010, first day of trading on the exchange) to October 31, 2010 was (2.30)%. The share price total return from Fund inception to October 31, 2010 was (2.42)%.

See Notes to Financial Statements.

31

Financial Highlights (Continued)

PowerShares S&P SmallCap Health Care Portfolio

	Six Months Ended April 30, 2011 (Unaudited)			For the Period April 5, 2010* through October 31, 2010
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	25.31		$	25.30
Net investment income (loss)**		(0.01	)		(0.01	)
Net realized and unrealized gain on investments		8.85			0.02
Total from investment operations		8.84			0.01
Distributions to shareholders from:
Net investment income		(0.07	)		—
Net asset value at end of period	$	34.08		$	25.31
Share price at end of period***	$	34.10		$	25.31
NET ASSET VALUE, TOTAL RETURN****		35.01	%		0.04	%(b)
SHARE PRICE TOTAL RETURN****		35.09	%		0.04	%(b)
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	170,377		$	45,564
Ratio to average net assets of:
Expenses		0.29	%†		0.29	%†
Net investment income (loss)		(0.03	)%†		(0.08	)%†
Portfolio turnover rate ††		12	%		14	%
Undistributed net investment income (loss) included in price of units issued and redeemed**#	$	(0.10	)	$	(0.00	)(a)

PowerShares S&P SmallCap Industrials Portfolio

	Six Months Ended April 30, 2011 (Unaudited)			For the Period April 5, 2010* through October 31, 2010
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	25.88		$	25.41
Net investment income**		0.10			0.12	^
Net realized and unrealized gain on investments		5.08			0.38
Total from investment operations		5.18			0.50
Distributions to shareholders from:
Net investment income		(0.16	)		(0.03	)
Net asset value at end of period	$	30.90		$	25.88
Share price at end of period***	$	30.89		$	25.88
NET ASSET VALUE, TOTAL RETURN****		20.03	%		1.95	%(c)
SHARE PRICE TOTAL RETURN****		19.99	%		1.95	%(c)
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	37,084		$	21,994
Ratio to average net assets of:
Expenses		0.29	%†		0.29	%†
Net investment income		0.67	%†		0.95	%†^
Portfolio turnover rate ††		4	%		11	%
Undistributed net investment income included in price of units issued and redeemed**#	$	0.04		$	0.06

*  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 the sale at the share price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.

†  Annualized.

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

^  Net investment income per share and the ratio of net investment income to average net assets include a special cash dividend received of $1 per share owned of Heartland Express, Inc. on October 5, 2010. Net investment income per share and the ratio of net investment income to average net assets excluding the special dividend are $0.09 and 0.68%, 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).

(b)  The net asset value total return from Fund Inception (April 7, 2010, first day of trading on the exchange) to October 31, 2010 was 0.92%. The share price total return from Fund inception to October 31, 2010 was 1.00%.

(c)  The net asset value total return from Fund Inception (April 7, 2010, first day of trading on the exchange) to October 31, 2010 was 2.24%. The share price total return from Fund inception to October 31, 2010 was 2.28%.

See Notes to Financial Statements.

32

Financial Highlights (Continued)

PowerShares S&P SmallCap Information Technology Portfolio

	Six Months Ended April 30, 2011 (Unaudited)			For the Period April 5, 2010* through October 31, 2010
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	26.39		$	25.53
Net investment income**		0.00	(a)		0.06	^
Net realized and unrealized gain on investments		6.29			0.80
Total from investment operations		6.29			0.86
Distributions to shareholders from:
Net investment income		(0.06	)		—
Net asset value at end of period	$	32.62		$	26.39
Share price at end of period***	$	32.68		$	26.38
NET ASSET VALUE, TOTAL RETURN****		23.86	%		3.37	%(b)
SHARE PRICE TOTAL RETURN****		24.14	%		3.33	%(b)
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	117,444		$	35,626
Ratio to average net assets of:
Expenses		0.29	%†		0.29	%†
Net investment income (loss)		0.02	%†		0.48	%†^
Portfolio turnover rate ††		3	%		10	%
Undistributed net investment income (loss) included in price of units issued and redeemed**#	$	(0.01	)	$	(0.01	)

PowerShares S&P SmallCap Materials Portfolio

	Six Months Ended April 30, 2011 (Unaudited)			For the Period April 5, 2010* through October 31, 2010
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	26.22		$	25.60
Net investment income**		0.09			0.10
Net realized and unrealized gain on investments		4.48			0.60	>
Total from investment operations		4.57			0.70
Distributions to shareholders from:
Net investment income		(0.17	)		(0.08	)
Net asset value at end of period	$	30.62		$	26.22
Share price at end of period***	$	30.62		$	26.22
NET ASSET VALUE, TOTAL RETURN****		17.48	%		2.79	%(c)
SHARE PRICE TOTAL RETURN****		17.48	%		2.79	%(c)
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	3,062		$	2,622
Ratio to average net assets of:
Expenses		0.29	%†		0.29	%†
Net investment income		0.62	%†		0.70	%†
Portfolio turnover rate ††		8	%		28	%
Undistributed net investment income (loss) included in price of units issued and redeemed**#	$	0.00	(a)	$	(0.02	)

*  Commencement of Investment Operations.

**  Based on average shares outstanding.

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

****  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 the 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.

>  Due to the timing of creations and redemptions of capital shares, the net realized and unrealized gain (loss) per share is not in accord with the Fund's change in net realized and unrealized gain (loss) on investment securities and in-kind transactions for the period.

†  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 $3.25 per share owned of Anixter International, Inc. on October 28, 2010. Net investment income(loss) per share and the ratio of net investment income(loss) to average net assets excluding the special dividend are less than $(0.005) and (0.005)%, 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.

(b)  The net asset value total return from Fund Inception (April 7, 2010, first day of trading on the exchange) to October 31, 2010 was 3.33%. The share price total return from Fund inception to October 31, 2010 was 3.33%.

(c)  The net asset value total return from Fund Inception (April 7, 2010, first day of trading on the exchange) to October 31, 2010 was 2.23%. The share price total return from Fund inception to October 31, 2010 was 2.23%.

See Notes to Financial Statements.

33

Financial Highlights (Continued)

PowerShares S&P SmallCap Utilities Portfolio

	Six Months Ended April 30, 2011 (Unaudited)			For Period April 5, 2010* through October 31, 2010
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	27.50		$	25.30
Net investment income**		0.44			0.40
Net realized and unrealized gain on investments		2.25			2.03
Total from investment operations		2.69			2.43
Distributions to shareholders from:
Net investment income		(0.49	)		(0.23	)
Net asset value at end of period	$	29.70		$	27.50
Share price at end of period***	$	29.70		$	27.49
NET ASSET VALUE, TOTAL RETURN****		9.89	%		9.70	%(a)
SHARE PRICE TOTAL RETURN****		9.93	%		9.66	%(a)
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	47,526		$	38,500
Ratio to average net assets of:
Expenses		0.29	%†		0.29	%†
Net investment income		3.16	%†		3.14	%†
Portfolio turnover rate ††		3	%		8	%
Undistributed net investment income included in price of units issued and redeemed**#	$	0.01		$	0.13

*  Commencement of Investment Operations.

**  Based on average shares outstanding.

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

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

†  Annualized.

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

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

(a)  The net asset value total return from Fund Inception (April 7, 2010, first day of trading on the exchange) to October 31, 2010 was 9.05%. The share price total return from Fund Inception to October 31, 2010 was 9.01%.

See Notes to Financial Statements.

34

Notes to Financial Statements

PowerShares Exchange-Traded Fund Trust II

April 30, 2011 (Unaudited)

Note 1. Organization

PowerShares Exchange-Traded Fund Trust II (the "Trust") was organized as a Massachusetts business trust on October 10, 2006 and is authorized to have multiple series of portfolios. The Trust is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the "1940 Act"). As of April 30, 2011, the Trust offered forty-five portfolios. This report includes the following portfolios:

Full Name	Short Name
PowerShares S&P SmallCap Consumer Discretionary Portfolio	"S&P SmallCap Consumer Discretionary Portfolio"
PowerShares S&P SmallCap Consumer Staples Portfolio	"S&P SmallCap Consumer Staples Portfolio"
PowerShares S&P SmallCap Energy Portfolio	"S&P SmallCap Energy Portfolio"
PowerShares S&P SmallCap Financials Portfolio	"S&P SmallCap Financials Portfolio"
PowerShares S&P SmallCap Health Care Portfolio	"S&P SmallCap Health Care Portfolio"
PowerShares S&P SmallCap Industrials Portfolio	"S&P SmallCap Industrials Portfolio"
PowerShares S&P SmallCap Information Technology Portfolio	"S&P SmallCap Information Technology Portfolio"
PowerShares S&P SmallCap Materials Portfolio	"S&P SmallCap Materials Portfolio"
PowerShares S&P SmallCap Utilities Portfolio	"S&P SmallCap Utilities 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 NASDAQ Stock Market LLC ("NASDAQ").

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

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

Fund	Index
S&P SmallCap Consumer Discretionary Portfolio	S&P SmallCap 600 Capped Consumer Discretionary Index®
S&P SmallCap Consumer Staples Portfolio	S&P SmallCap 600 Capped Consumer Staples Index®
S&P SmallCap Energy Portfolio	S&P SmallCap 600 Capped Energy Index®
S&P SmallCap Financials Portfolio	S&P SmallCap 600 Capped Financials Index®
S&P SmallCap Health Care Portfolio	S&P SmallCap 600 Capped Health Care Index®
S&P SmallCap Industrials Portfolio	S&P SmallCap 600 Capped Industrials Index®
S&P SmallCap Information Technology Portfolio	S&P SmallCap 600 Capped Information Technology Index®
S&P SmallCap Materials Portfolio	S&P SmallCap 600 Capped Materials Index®
S&P SmallCap Utilities Portfolio	S&P SmallCap 600 Capped Utilities & Telecom Services Index®

35

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust II

April 30, 2011 (Unaudited)

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.

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,

36

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust II

April 30, 2011 (Unaudited)

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.

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

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

B. Other Risks

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

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

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

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

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

37

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust II

April 30, 2011 (Unaudited)

C. Federal Income Taxes

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

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

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

D. Investment Income and Investment Transactions

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

E. Expenses

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

F. Dividends and Distributions to Shareholders

Each Fund declares and pays dividends from net investment income, if any, to its shareholders quarterly and records on ex-dividend date. Each Fund distributes net realized taxable capital gains, if any, generally annually in cash and records 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

38

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust II

April 30, 2011 (Unaudited)

Changes in Net Assets as undistributed net investment income included in the price of capital Shares issued or redeemed. The distributions to shareholders of amounts so applied may be deemed to be a return of capital for tax purposes to the extent that such distributions exceed taxable income.

Note 3. Investment Advisory Agreement and Other Agreements

The Trust has entered into an Investment Advisory Agreement with 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. As compensation for its services, each Fund has agreed to pay the Adviser an annual unitary management fee. The Adviser has agreed to pay substantially all expenses of the Funds, including the cost of transfer agency, custody, fund administration, legal, audit and other services, except for distribution fees, if any, brokerage expenses, taxes, interest, litigation expenses and other extraordinary expenses. Each Fund has agreed to pay the Adviser an annual unitary management fee of 0.29% of the Fund's average daily net assets.

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

The Adviser has entered into a licensing agreement for each Fund with Standard & Poor's (the "Licensor"). Each Underlying Index name trademark is owned by the 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 each Fund may track its respective Index.

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 Funds and other certain underlying ETFs have the same investment adviser and, therefore, are considered to be affiliated. The tables below show the transactions in and earnings from investments in affiliated ETFs for the six-month period ended April 30, 2011.

PowerShares S&P SmallCap Consumer Staples Portfolio

	Value 10/31/10		Purchases at Cost		Proceeds from Sales		Change in Unrealized Depreciation			Realized Gain (Loss)		Value 4/30/11		Dividend Income
PowerShares Dynamic Consumer Staples Sector Portfolio	$	—	$	151,396	$	—	$	(48	)	$	—	$	151,348	$	—

39

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust II

April 30, 2011 (Unaudited)

PowerShares S&P SmallCap Energy Portfolio

	Value 10/31/10		Purchases at Cost		Proceeds from Sales		Change in Unrealized Appreciation		Realized Gain (Loss)		Value 4/30/11		Dividend Income
PowerShares Dynamic Energy Sector Portfolio	$	—	$	1,371,899	$	—	$	494	$	—	$	1,372,393	$	—

Note 5. Additional Valuation Information

GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3) generally when market prices are not readily available or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment's assigned level:

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

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

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

As of April 30, 2011, the securities in each Fund were valued based on Level 1 inputs. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

With respect to each Fund, during the six-month period ended April 30, 2011, there were no significant transfers between investment levels.

Note 6. Federal Income Tax

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from GAAP. Reclassifications are made to the Fund's capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund's fiscal year-end.

40

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust II

April 30, 2011 (Unaudited)

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 the Internal Revenue Code rules and related regulations based on the results of future transactions.

The following Funds had capital loss carryforward amounts as of October 31, 2010, which expire on October 31 of the year listed below:

	2018*
S&P SmallCap Consumer Discretionary Portfolio	$	37,390
S&P SmallCap Consumer Staples Portfolio		22,594

* 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 six-month period ended April 30, 2011, the cost of securities purchased and proceeds from sales of securities, excluding short-term securities, money market funds and in-kind transactions, were as follows:

	Purchases		Sales
S&P SmallCap Consumer Discretionary Portfolio	$	1,206,190	$	1,287,308
S&P SmallCap Consumer Staples Portfolio		2,535,726		2,529,358
S&P SmallCap Energy Portfolio		12,735,522		12,270,198
S&P SmallCap Financials Portfolio		3,402,264		2,875,525
S&P SmallCap Health Care Portfolio		10,483,119		9,661,235
S&P SmallCap Industrials Portfolio		1,224,259		1,273,960
S&P SmallCap Information Technology Portfolio		2,203,379		2,806,396
S&P SmallCap Materials Portfolio		317,692		412,726
S&P SmallCap Utilities Portfolio		1,109,472		1,291,783

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

	Securities Received		Securities Delivered
S&P SmallCap Consumer Discretionary Portfolio	$	26,977,914	$	8,737,357
S&P SmallCap Consumer Staples Portfolio		16,641,284		—
S&P SmallCap Energy Portfolio		167,648,870		48,869,620
S&P SmallCap Financials Portfolio		8,429,353		2,048,714
S&P SmallCap Health Care Portfolio		99,169,719		2,047,359
S&P SmallCap Industrials Portfolio		12,894,819		3,010,947
S&P SmallCap Information Technology Portfolio		80,203,968		11,402,080
S&P SmallCap Materials Portfolio		2,842,920		2,959,570
S&P SmallCap Utilities Portfolio		7,795,424		1,888,132

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

41

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust II

April 30, 2011 (Unaudited)

At April 30, 2011, the cost of investments on a tax basis, includes the adjustments for financial reporting purposes as of the most recently completed Federal income tax reporting period-end.

	Cost		Unrealized Appreciation		Gross Unrealized Appreciation		Gross Unrealized (Depreciation)
S&P SmallCap Consumer Discretionary Portfolio	$	48,456,124	$	7,485,065	$	8,550,102	$	(1,065,037	)
S&P SmallCap Consumer Staples Portfolio		21,621,065		2,265,456		2,433,130		(167,674	)
S&P SmallCap Energy Portfolio		134,680,726		14,748,128		16,115,940		(1,367,812	)
S&P SmallCap Financials Portfolio		53,805,969		11,176,880		11,530,946		(354,066	)
S&P SmallCap Health Care Portfolio		143,911,633		26,518,978		27,056,801		(537,823	)
S&P SmallCap Industrials Portfolio		30,577,570		6,505,089		6,665,873		(160,784	)
S&P SmallCap Information Technology Portfolio		102,242,815		15,212,334		16,114,683		(902,349	)
S&P SmallCap Materials Portfolio		2,812,706		249,509		343,699		(94,190	)
S&P SmallCap Utilities Portfolio		41,763,258		5,743,376		6,135,553		(392,177	)

Note 8. Trustees' Fees

The Funds compensate each Trustee who is not an "interested person" as defined in the 1940 Act (an "Independent Trustee"). The Adviser, as result of the unitary management fee, pays for such compensation. The Non-Independent Trustees of the Trust do not receive any Trustees' fees.

The Trust has adopted a deferred compensation plan (the "Plan"). Under the Plan, an Independent Trustee who has executed a Deferred Fee Agreement (a "Participating Trustee") may defer receipt of all or a portion of his compensation ("Deferral Fees"). Such Deferral Fees are deemed to be invested in select PowerShares Funds. The Deferral Fees payable to the Participating Trustee are valued as of the date such Deferral Fees would have been paid to the Participating Trustee. The value increases with contributions or with increases in the value of the Shares selected, and the value decreases with distributions or with declines in the value of the Shares selected.

Note 9. 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 10. 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

42

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust II

April 30, 2011 (Unaudited)

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.

43

Board Considerations Regarding Continuation of Investment Advisory Agreement

At a meeting held on April 14, 2011, the Board of Trustees of the PowerShares Exchange-Traded Fund Trust II (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 40 series (each, a "Fund" and collectively, the "Funds"):

PowerShares 1-30 Laddered Treasury Portfolio

PowerShares Build America Bond Portfolio

PowerShares CEF Income Composite Portfolio

PowerShares DWA Developed Markets Technical Leaders Portfolio

PowerShares DWA Emerging Markets Technical Leaders Portfolio

PowerShares Dynamic Developed International Opportunities Portfolio

PowerShares Emerging Markets Infrastructure Portfolio

PowerShares Emerging Markets Sovereign Debt Portfolio

PowerShares FTSE RAFI Asia Pacific ex-Japan Portfolio

PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio

PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio

PowerShares FTSE RAFI Emerging Markets Portfolio

PowerShares Fundamental High Yield^® Corporate Bond Portfolio

PowerShares Global Agriculture Portfolio

PowerShares Global Clean Energy Portfolio

PowerShares Global Coal Portfolio

PowerShares Global Gold and Precious Metals Portfolio

PowerShares Global Nuclear Energy Portfolio

PowerShares Global Steel Portfolio

PowerShares Global Water Portfolio

PowerShares Global Wind Energy Portfolio

PowerShares Ibbotson Alternative Completion Portfolio

PowerShares Insured California Municipal Bond Portfolio

PowerShares Insured National Municipal Bond Portfolio

PowerShares Insured New York Municipal Bond Portfolio

PowerShares International Corporate Bond Portfolio

PowerShares MENA Frontier Countries Portfolio

PowerShares Preferred Portfolio

PowerShares RiverFront Tactical Balanced Growth Portfolio

PowerShares RiverFront Tactical Growth & Income Portfolio

PowerShares S&P SmallCap Consumer Discretionary Portfolio

PowerShares S&P SmallCap Consumer Staples Portfolio

PowerShares S&P SmallCap Energy Portfolio

PowerShares S&P SmallCap Financials Portfolio

PowerShares S&P SmallCap Health Care Portfolio

PowerShares S&P SmallCap Industrials Portfolio

PowerShares S&P SmallCap Information Technology Portfolio

PowerShares S&P SmallCap Materials Portfolio

PowerShares S&P SmallCap Utilities Portfolio

PowerShares VRDO Tax-Free Weekly 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,

44

Board Considerations Regarding Continuation of Investment Advisory Agreement (Continued)

determined to approve the continuation of the Investment Advisory Agreement for each Fund. No single factor was determinative in the Board's analysis.

Nature, Extent and Quality of Services. In evaluating the nature, extent and quality of the Adviser's services, the Trustees reviewed information concerning the functions performed by the Adviser for the Funds, information describing the Adviser's current organization and projected staffing, including operations assistance provided by the Adviser's parent organization, Invesco Ltd., and the background and experience of the persons responsible for the day-to-day management of the Funds. The Trustees reviewed matters related to the Adviser's execution of portfolio transactions on behalf of the Funds. The Trustees also reviewed information on the performance of the Funds and the performance of their underlying indices through December 31, 2010, including reports on the correlation and tracking error between the underlying index and each Fund's performance, as well as the Adviser's analysis of the tracking error between each Fund and its underlying index. The Trustees noted that the correlation for each Fund, other than PowerShares VRDO Tax-Free Weekly Portfolio, was within the targeted range set forth in the Trust's registration statement and the tracking error for each Fund was within the targeted range set forth in the Trust's registration statement. The Trustees reviewed the reasons for PowerShares VRDO Tax-Free Weekly Portfolio's level of correlation to its underlying index, including the Adviser's representation that a primary cause is the abnormally low yield environment and its expectation that, over time, the Fund's correlation will return to within the targeted range set forth in the Trust's registration statement. The Trustees concluded that each Fund's correlation to its underlying index and the tracking error for each Fund were 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 total expense ratio and unitary advisory fee, as compared to information compiled by the Adviser from Lipper Inc. databases on the expense ratios of comparable exchange-traded funds ("ETFs"), open-end (non-ETF) index funds and open-end actively-managed funds. The Trustees noted that the annual advisory fee charged to each Fund, as set forth below, is a unitary fee and that the Adviser pays all other operating expenses of each Fund, except that each Fund pays its brokerage expenses, taxes, interest and extraordinary expenses.

0.25%:  PowerShares 1-30 Laddered Treasury Portfolio, PowerShares Ibbotson Alternative Completion Portfolio, PowerShares RiverFront Tactical Balanced Growth Portfolio, PowerShares RiverFront Tactical Growth & Income Portfolio, PowerShares VRDO Tax-Free Weekly Portfolio

0.29%:  PowerShares S&P SmallCap Consumer Discretionary Portfolio, PowerShares S&P SmallCap Consumer Staples Portfolio, PowerShares S&P SmallCap Energy Portfolio, PowerShares S&P SmallCap Financials Portfolio, PowerShares S&P SmallCap Health Care Portfolio, PowerShares S&P SmallCap Industrials Portfolio, PowerShares S&P SmallCap Information Technology

45

Board Considerations Regarding Continuation of Investment Advisory Agreement (Continued)

Portfolio, PowerShares S&P SmallCap Materials Portfolio, PowerShares S&P SmallCap Utilities Portfolio

0.35%:  PowerShares Build America Bond Portfolio, PowerShares Insured California Municipal Bond Portfolio, PowerShares Insured National Municipal Bond Portfolio, PowerShares Insured New York Municipal Bond Portfolio

0.50%:  PowerShares CEF Income Composite Portfolio, PowerShares Emerging Markets Sovereign Debt Portfolio, PowerShares Fundamental High Yield^® Corporate Bond Portfolio, PowerShares International Corporate Bond Portfolio, PowerShares Preferred Portfolio

0.75%:  PowerShares Dynamic Developed International Opportunities Portfolio, PowerShares Emerging Markets Infrastructure Portfolio, PowerShares FTSE RAFI Developed Markets ex-U.S. Portfolio, PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio, PowerShares Global Agriculture Portfolio, PowerShares Global Clean Energy Portfolio, PowerShares Global Coal Portfolio, PowerShares Global Gold and Precious Metals Portfolio, PowerShares Global Nuclear Energy Portfolio, PowerShares Global Steel Portfolio, PowerShares Global Water Portfolio, PowerShares Global Wind Energy Portfolio

0.80%:  PowerShares DWA Developed Markets Technical Leaders Portfolio, PowerShares FTSE RAFI Asia Pacific ex-Japan Small-Mid Portfolio

0.85%:  PowerShares FTSE RAFI Emerging Markets Portfolio

0.90%:  PowerShares DWA Emerging Markets Technical Leaders Portfolio

0.95%:  PowerShares MENA Frontier Countries Portfolio

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 each Fund's advisory fee was:

•  higher than the median expense ratio of its ETF peer funds (except for the advisory fee of each of PowerShares DWA Developed Markets Technical Leaders Portfolio, PowerShares Emerging Markets Sovereign Debt Portfolio, PowerShares Fundamental High Yield^® Corporate Bond Portfolio, PowerShares Global Agriculture Portfolio, PowerShares Ibbotson Alternative Completion Portfolio, PowerShares S&P SmallCap Consumer Discretionary Portfolio, PowerShares S&P SmallCap Consumer Staples Portfolio, PowerShares S&P SmallCap Energy Portfolio, PowerShares S&P SmallCap Financials Portfolio, PowerShares S&P SmallCap Health Care Portfolio, PowerShares S&P SmallCap Industrials Portfolio, PowerShares S&P SmallCap Information Technology Portfolio, PowerShares S&P SmallCap Materials Portfolio and PowerShares S&P SmallCap Utilities Portfolio, which was equal to or lower 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 advisory fee of each of PowerShares CEF Income Composite Portfolio, PowerShares DWA Developed Markets Technical Leaders Portfolio, PowerShares Global Agriculture Portfolio, PowerShares Global Clean Energy Portfolio, PowerShares Global Coal Portfolio, PowerShares Global Gold and Precious Metals

46

Board Considerations Regarding Continuation of Investment Advisory Agreement (Continued)

Portfolio, PowerShares Global Nuclear Energy Portfolio, PowerShares Global Steel Portfolio, PowerShares Global Water Portfolio, PowerShares Global Wind Energy Portfolio, PowerShares Ibbotson Alternative Completion Portfolio, PowerShares RiverFront Tactical Balanced Growth Portfolio, PowerShares RiverFront Tactical Growth & Income Portfolio, PowerShares S&P SmallCap Consumer Discretionary Portfolio, PowerShares S&P SmallCap Consumer Staples Portfolio, PowerShares S&P SmallCap Financials Portfolio, PowerShares S&P SmallCap Health Care Portfolio, PowerShares S&P SmallCap Industrials Portfolio, PowerShares S&P SmallCap Information Technology Portfolio, PowerShares S&P SmallCap Materials Portfolio and PowerShares S&P SmallCap Utilities Portfolio, which was lower than the median expense ratio of its open-end index peer funds; and there was no comparable open-end index peer fund information available for PowerShares Dynamic Developed International Opportunities Portfolio, PowerShares Emerging Markets Sovereign Debt Portfolio, PowerShares FTSE RAFI Asia Pacific ex-Japan Portfolio, PowerShares Fundamental High Yield^® Corporate Bond Portfolio, PowerShares Insured California Municipal Bond Portfolio, PowerShares Insured National Municipal Bond Portfolio, PowerShares Insured New York Municipal Bond Portfolio, PowerShares International Corporate Bond Portfolio or PowerShares VRDO Tax-Free Weekly Portfolio); but

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

The Trustees considered that the Adviser had agreed to waive a portion of its advisory fee, at least until April 20, 2012, for PowerShares Build America Bond Portfolio, PowerShares Insured California Municipal Bond Portfolio, PowerShares Insured National Municipal Bond Portfolio, PowerShares Insured New York Municipal Bond Portfolio and PowerShares MENA Frontier Countries Portfolio. 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.

Economies of Scale and Whether Fee Levels Reflect These Economies of Scale. The Trustees reviewed the information provided by the Adviser as to the extent to which economies of scale are realized as each Fund grows and whether fee levels reflect economies of scale for the benefit of shareholders. The Trustees reviewed each Fund's asset size and expense ratio. The Trustees noted that any reduction in fixed costs associated with the management of the Funds would be enjoyed by the Adviser, but a unitary fee provides certainty in expenses for the Funds. The Trustees considered whether the advisory fee rate for each Fund was reasonable in relation to the asset size of that Fund, and concluded that the flat advisory fee was reasonable and appropriate.

47

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.

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.

48

PROXY VOTING POLICIES AND PROCEDURES

A description of the Funds' proxy voting policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities is available, without charge and upon request, by calling (800) 983-0903. This information is also available on the Securities and Exchange Commission's ("Commission") website at www.sec.gov.

Information regarding how the Funds voted proxies for portfolio securities, if applicable, during the most recent 12-month period ended June 30, is also available, without charge and upon request, by (i) calling (800) 983-0903; or (ii) accessing the Trust's Form N-PX on the Commission's website at www.sec.gov.

QUARTERLY PORTFOLIOS

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

301 West Roosevelt Road
Wheaton, IL 60187

800.983.0903
www.invescopowershares.com

© 2011 Invesco PowerShares Capital Management LLC   P-SCS-SAR-1

2011 Semi-Annual Report to Shareholders

April 30, 2011

PowerShares KBW High Dividend Yield Financial Portfolio (KBWD)

PowerShares KBW International Financial Portfolio (KBWX)

PowerShares KBW Premium Yield Equity REIT Portfolio (KBWY)

PowerShares KBW Property & Casualty Insurance Portfolio (KBWP)

Table of Contents

Frequency Distribution of Discounts & Premiums	2
Fees and Expenses	4
KBW Portfolios
Schedules of Investments
PowerShares KBW High Dividend Yield Financial Portfolio (KBWD)	5
PowerShares KBW International Financial Portfolio (KBWX)	6
PowerShares KBW Premium Yield Equity REIT Portfolio (KBWY)	8
PowerShares KBW Property & Casualty Insurance Portfolio (KBWP)	9
Statements of Assets and Liabilities	10
Statements of Operations	11
Statements of Changes in Net Assets	12
Financial Highlights	13
Notes to Financial Statements	15
Board Considerations Regarding Approval of Investment Advisory Agreement	24

Frequency Distribution of Discounts & Premiums

Since Inception through April 30, 2011

					Closing Price Above NAV (bps)
Ticker	Fund Name	Inception	Trading Days		0-24		25-49		50-99		100-149		150-199		200+
KBWD	PowerShares KBW High Dividend Yield Financial Portfolio	12/2/10		104		91		2		0		0		0		1
KBWX	PowerShares KBW International Financial Portfolio	12/2/10		104		70		0		0		1		0		0
KBWY	PowerShares KBW Premium Yield Equity REIT Portfolio	12/2/10		104		64		0		0		0		0		1
KBWP	PowerShares KBW Property & Casualty Insurance Portfolio	12/2/10		104		53		2		2		2		0		0

2

	Closing Price Below NAV (bps)
Ticker	-0-24		-25-49		-50-99		-100-149		-150-199		-200+
KBWD		10		0		0		0		0		0
KBWX		32		0		1		0		0		0
KBWY		39		0		0		0		0		0
KBWP		31		1		4		1		2		6

3

Fees and Expenses

As a shareholder of a Fund of the PowerShares Exchange-Traded Fund Trust II, you incur a unitary management 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 (or shorter) period ended April 30, 2011.

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

Actual Expenses

The first line in the following table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading "Expenses Paid During the Six-Month Period" to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line in the following table provides information about hypothetical account values and hypothetical expenses based on each Fund's actual expense ratio and an assumed annualized rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only, and do not reflect any transactional costs such as sales charges and brokerage commissions. Therefore the second line in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

	Beginning Account Value December 2, 2010 (Fund Inception)		Ending Account Value April 30, 2011		Annualized Expense Ratio Based on the Number of Days in the Period			Expenses Paid During December 2, 2010 (Fund Inception) to April 30, 2011 (1)
PowerShares KBW High Dividend Yield Financial Portfolio Actual	$	1,000.00	$	1,080.29		0.36	%	$	1.53
Hypothetical (5% return before expenses)	$	1,000.00	$	1,023.01		0.36	%	$	1.81
PowerShares KBW International Financial Portfolio Actual	$	1,000.00	$	1,066.95		0.40	%	$	1.69
Hypothetical (5% return before expenses)	$	1,000.00	$	1,022.81		0.40	%	$	2.01
PowerShares KBW Premium Yield Equity REIT Portfolio Actual	$	1,000.00	$	1,111.12		0.35	%	$	1.51
Hypothetical (5% return before expenses)	$	1,000.00	$	1,023.06		0.35	%	$	1.76
PowerShares KBW Property & Casualty Insurance Portfolio Actual	$	1,000.00	$	1,073.85		0.36	%	$	1.52
Hypothetical (5% return before expenses)	$	1,000.00	$	1,023.01		0.36	%	$	1.81

⁽¹⁾  Expenses are calculated using the annualized expense ratio, which represents the ongoing expenses as a percentage of net assets for the period December 2, 2010 (Fund Inception) to April 30, 2011. Expenses are calculated by multiplying the Fund's annualized expense ratio by the average account value for the period; then multiplying the result by 150 and then dividing the result by 365. Hypothetical 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.

4

Portfolio Composition

PowerShares KBW High Dividend Yield Financial Portfolio

Industry Breakdown (% of the Fund's Net Assets) as of April 30, 2011 (Unaudited)

REITS	52.4
Banks	14.8
Insurance	11.9
Investment Companies	10.5
Diversified Financial Services	5.6
Savings & Loans	3.6
Trucking & Leasing	1.2
Other assets less liabilities	0.0

Schedule of Investments

PowerShares KBW High Dividend Yield Financial Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Banks—14.8%
	4,254	Bank of Hawaii Corp.	$	207,553
	8,110	Bryn Mawr Bank Corp.		163,417
	5,584	City Holding Co.		190,414
	25,526	CVB Financial Corp.		248,623
	22,734	F.N.B. Corp.		248,937
	11,168	FirstMerit Corp.		195,105
	4,387	Park National Corp.		303,054
	14,624	Renasant Corp.		245,391
	8,908	Trustmark Corp.		207,022
				2,009,516
		Diversified Financial Services—5.6%
	34,434	BGC Partners, Inc., Class A		332,288
	6,913	Federated Investors, Inc., Class B		178,217
	47,596	GFI Group, Inc.		243,216
				753,721
		Insurance—11.9%
	6,780	Arthur J. Gallagher & Co.		201,908
	12,231	Fidelity National Financial, Inc., Class A		188,847
	6,780	Harleysville Group, Inc.		217,502
	24,861	Maiden Holdings Ltd. (Bermuda)		185,214
	4,520	Marsh & McLennan Cos., Inc.		136,866
	8,110	Mercury General Corp.		322,291
	4,786	Safety Insurance Group, Inc.		224,081
	3,324	Willis Group Holdings PLC (Ireland)		137,348
				1,614,057
		Investment Companies—10.5%
	41,613	Apollo Investment Corp.		493,114
	24,994	Ares Capital Corp.		442,643
	39,220	PennantPark Investment Corp.		483,975
				1,419,732
		REITs—52.4%
	29,648	American Capital Agency Corp.		863,053

Number of Shares			Value
		Common Stocks and Other Equity Interests (Continued)
		REITs — (Continued)
	38,954	Annaly Capital Management, Inc.	$	694,939
	84,954	Anworth Mortgage Asset Corp.		609,970
	42,942	Capstead Mortgage Corp.		568,552
	185,729	Chimera Investment Corp.		752,202
	20,208	Hatteras Financial Corp.		574,109
	17,150	Hospitality Properties Trust		414,173
	34,567	Invesco Mortgage Capital, Inc. (~)		786,054
	67,671	MFA Financial, Inc.		540,015
	23,532	PennyMac Mortgage Investment Trust		431,106
	10,769	Sun Communities, Inc.		414,391
	26,457	Walter Investment Management Corp.		471,464
				7,120,028
		Savings & Loans—3.6%
	15,821	First Niagara Financial Group, Inc.		227,823
	15,422	New York Community Bancorp, Inc.		256,005
				483,828
		Trucking & Leasing—1.2%
	4,786	Textainer Group Holdings Ltd.		169,711
		Total Investments (Cost $13,338,336)—100.0%		13,570,593
		Other assets less liabilities—0.0%		5,491
		Net Assets—100.0%	$	13,576,084

Investment Abbreviations:

REIT Real Estate Investment Trust

Notes to Schedule of Investments:

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

See Notes to Financial Statements.

5

Portfolio Composition

PowerShares KBW International Financial Portfolio

Industry Breakdown (% of the Fund's Net Assets) as of April 30, 2011 (Unaudited)

Banks	72.7
Insurance	15.0
Diversified Financial Services	7.0
Real Estate	3.1
Investment Companies	1.4
Building Materials	0.6
Commercial Services	0.1
Home Builders	0.1
Other assets less liabilities	0.0

Schedule of Investments

PowerShares KBW International Financial Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Foreign Stocks and Other Equity Interests—100.0%
		Argentina—2.2%
	465	Banco Macro SA ADR	$	17,200
	1,438	BBVA Banco Frances SA ADR		14,970
	1,319	Grupo Financiero Galicia SA ADR*		16,857
	893	IRSA Inversiones y Representaciones SA ADR		11,314
				60,341
		Australia—5.2%
	1,026	Westpac Banking Corp. ADR		140,808
		Bermuda—2.2%
	520	Alterra Capital Holdings Ltd.		11,430
	537	Aspen Insurance Holdings Ltd.		15,342
	743	Montpelier Re Holdings Ltd.		13,441
	245	PartnerRe Ltd.		19,688
				59,901
		Brazil—10.3%
	3,176	Banco Bradesco SA ADR		64,250
	6,600	Banco Santander Brasil SA ADR		76,626
	2,255	Gafisa SA ADR*		27,872
	4,636	Itau Unibanco Holding SA ADR		110,105
				278,853
		Canada—16.2%
	789	Bank of Montreal		51,782
	1,288	Bank of Nova Scotia		78,620
	1,033	Brookfield Asset Management, Inc., Class A		34,730
	551	Canadian Imperial Bank of Commerce		47,617
	1,654	Manulife Financial Corp.		29,722
	1,235	Royal Bank of Canada		77,756
	975	Sun Life Financial, Inc.		31,941
	1,002	Toronto-Dominion Bank (The)		86,803
				438,971

Number of Shares			Value
		Foreign Stocks and Other Equity Interests (Continued)
		Cayman Islands—0.9%
	416	China Real Estate Information Corp. ADR*	$	3,636
	582	CNinsure, Inc. ADR		8,543
	942	E-House China Holdings Ltd. ADR		11,257
	681	Xinyuan Real Estate Co. Ltd. ADR*		1,478
				24,914
		Chile—5.9%
	458	A.F.P. Provida SA ADR		37,098
	448	Banco de Chile ADR		39,939
	522	Banco Santander Chile ADR		47,810
	1,592	Corpbanca SA ADR		36,855
				161,702
		China—2.5%
	1,272	China Life Insurance Co. Ltd. ADR		68,294
		Colombia—2.7%
	1,091	Bancolombia SA ADR		72,279
		Germany—3.6%
	1,478	Deutsche Bank AG		96,543
		Greece—1.0%
	16,282	National Bank of Greece SA ADR		25,888
		India—5.6%
	492	HDFC Bank Ltd. ADR		84,673
	1,328	ICICI Bank Ltd. ADR		66,931
				151,604
		Ireland—0.7%
	748	Allied Irish Banks PLC ADR*		2,611
	3,098	Bank of Ireland ADR		6,196
	453	XL Group PLC		11,062
				19,869

See Notes to Financial Statements.

6

Schedule of Investments (Continued)

PowerShares KBW International Financial Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Foreign Stocks and Other Equity Interests (Continued)
		Japan—7.8%
	15,888	Mitsubishi UFJ Financial Group, Inc. ADR	$	75,786
	2,570	Mizuho Financial Group, Inc. ADR		8,198
	5,436	Nomura Holdings, Inc. ADR		27,724
	545	ORIX Corp. ADR		26,798
	11,676	Sumitomo Mitsui Financial Group, Inc. ADR		72,858
				211,364
		Mexico—0.6%
	598	Desarrolladora Homex SAB de CV ADR*		16,881
		Netherlands—2.3%
	3,035	Aegon NV*		24,159
	2,882	ING Groep NV ADR*		38,013
				62,172
		South Korea—5.0%
	936	KB Financial Group, Inc. ADR		49,880
	551	Shinhan Financial Group Co. Ltd. ADR		53,458
	823	Woori Finance Holdings Co. Ltd. ADR		33,356
				136,694
		Spain—8.4%
	9,614	Banco Bilbao Vizcaya Argentaria SA ADR		123,155
	8,556	Banco Santander SA ADR		106,095
				229,250
		Switzerland—8.4%
	725	ACE Ltd.		48,756
	2,079	Credit Suisse Group AG ADR		94,574
	4,262	UBS AG*		85,240
				228,570
		United Kingdom—8.5%
	2,356	Aviva PLC ADR		35,717
	2,187	Barclays PLC ADR		41,662
	1,017	HSBC Holdings PLC ADR		55,396
	9,378	Lloyds Banking Group PLC ADR*		37,043
	1,996	Prudential PLC ADR		51,577
	765	Royal Bank of Scotland Group PLC ADR*		10,672
				232,067
		Total Investments (Cost $2,481,129)—100.0%		2,716,965
		Other assets less liabilities—0.0%		600
		Net Assets—100.0%	$	2,717,565

Investment Abbreviations:

ADR American Depositary Receipt

Notes to Schedule of Investments:

*  Non-income producing security.

See Notes to Financial Statements.

7

Portfolio Composition

PowerShares KBW Premium Yield Equity REIT Portfolio

Industry Breakdown (% of the Fund's Net Assets) as of April 30, 2011 (Unaudited)

Health Care	29.5
Diversified	15.5
Office Property	13.8
Single Tenant	11.8
Shopping Centers	11.5
Warehouse/Industrial	9.0
Hotels	4.5
Manufactured Homes	4.4
Other assets less liabilities	0.0

Schedule of Investments

PowerShares KBW Premium Yield Equity REIT Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Real Estate Investment Trust, Common Stocks and Other Equity Interests—100.0%
		Diversified—15.5%
	10,344	Duke Realty Corp.	$	157,746
	3,757	Entertainment Properties Trust		178,870
	15,947	Lexington Realty Trust		159,151
	5,577	Washington REIT		180,695
	13,791	Winthrop Realty Trust		167,285
				843,747
		Health Care—29.5%
	34,220	Cogdell Spencer, Inc.		207,031
	3,854	HCP, Inc.		152,695
	2,945	Health Care REIT, Inc.		158,353
	6,500	Healthcare Realty Trust, Inc.		148,460
	5,989	LTC Properties, Inc.		176,196
	18,378	Medical Properties Trust, Inc.		226,784
	3,147	National Health Investors, Inc.		153,039
	8,121	OMEGA Healthcare Investors, Inc.		186,458
	4,569	Universal Health Realty Income Trust		196,970
				1,605,986
		Hotels—4.5%
	10,054	Hospitality Properties Trust		242,804
		Manufactured Homes—4.4%
	6,293	Sun Communities, Inc.		242,155
		Office Property—13.8%
	12,182	Brandywine Realty Trust		154,711
	8,832	CommonWealth REIT		241,909
	6,801	Government Properties Income Trust		186,483
	4,766	Mack-Cali Realty Corp.		168,335
				751,438

Number of Shares			Value
		Real Estate Investment Trust, Common Stocks and Other Equity Interests (Continued)
		Shopping Centers—11.5%
	7,404	Equity One, Inc.	$	146,747
	18,682	Inland Real Estate Corp.		182,523
	11,259	Ramco-Gershenson Properties Trust		145,129
	7,810	Urstadt Biddle Properties, Inc., Class A		153,701
				628,100
		Single Tenant—11.8%
	8,115	Agree Realty Corp.		189,810
	10,561	Getty Realty Corp.		268,355
	7,005	National Retail Properties, Inc.		184,512
				642,677
		Warehouse/Industrial—9.0%
	29,856	DCT Industrial Trust, Inc.		173,463
	3,350	EastGroup Properties, Inc.		154,301
	10,154	First Potomac Realty Trust		164,800
				492,564
		Total Investments (Cost $5,157,617)—100.0%		5,449,471
		Other assets less liabilities—0.0%		821
		Net Assets—100.0%	$	5,450,292

Investment Abbreviations:

REIT Real Estate Investment Trust

See Notes to Financial Statements.

8

Portfolio Composition

PowerShares KBW Property & Casualty Insurance Portfolio

Industry Breakdown (% of the Fund's Net Assets) as of April 30, 2011 (Unaudited)

Property/Casualty Insurance	50.5
Reinsurance	33.4
Multi-line Insurance	16.1
Money Market Fund	0.0
Liabilities in excess of other assets	(0.0	)

Schedule of Investments

PowerShares KBW Property & Casualty Insurance Portfolio

April 30, 2011 (Unaudited)

Number of Shares			Value
		Common Stocks—100.0%
		Multi-line Insurance—16.1%
	7,867	Allstate Corp. (The)	$	266,219
	2,927	American Financial Group, Inc.		104,699
	1,995	Unitrin, Inc.		60,329
				431,247
		Property/Casualty Insurance—50.5%
	1,379	Arch Capital Group Ltd.*		143,416
	3,747	Chubb Corp. (The)		244,267
	1,920	Hanover Insurance Group, Inc. (The)		81,063
	2,908	HCC Insurance Holdings, Inc.		94,626
	1,491	Mercury General Corp.		59,252
	1,342	ProAssurance Corp.*		89,109
	9,787	Progressive Corp. (The)		214,727
	317	RLI Corp.		18,779
	3,020	Selective Insurance Group, Inc.		53,273
	3,989	Travelers Cos., Inc. (The)		252,424
	3,113	W.R. Berkley Corp.		101,515
				1,352,451
		Reinsurance—33.4%
	1,715	Allied World Assurance Co. Holdings Ltd. (Switzerland)		111,424
	2,927	Aspen Insurance Holdings Ltd. (Bermuda)		83,624
	2,964	Axis Capital Holdings Ltd. (Bermuda)		104,807
	1,901	Endurance Specialty Holdings Ltd. (Bermuda)		84,290
	3,896	Montpelier Re Holdings Ltd. (Bermuda)		70,479
	1,435	PartnerRe Ltd. (Bermuda)		115,317
	1,957	Platinum Underwriters Holdings Ltd. (Bermuda)		73,994
	1,417	RenaissanceRe Holdings Ltd. (Bermuda)		99,587
	1,883	Transatlantic Holdings, Inc.		92,813
	1,734	Validus Holdings Ltd.		56,424
				892,759
		Total Common Stocks (Cost $2,536,032)	$	2,676,457

Number of Shares			Value
		Money Market Fund—0.0%
	1,364	Goldman Sachs Financial Square Prime
		Obligations Institutional Share Class
		(Cost $1,364)	$	1,364
Total Investments		(Cost $2,537,396)—100.0%		2,677,821
		Liabilities in excess of other assets—(0.0%)		(128	)
		Net Assets—100.0%	$	2,677,693

Notes to Schedule of Investments:

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

Bermuda 23.6 %

*  Non-income producing security.

See Notes to Financial Statements.

9

Statements of Assets and Liabilities

April 30, 2011 (Unaudited)

	PowerShares KBW High Dividend Yield Financial Portfolio			PowerShares KBW International Financial Portfolio			PowerShares KBW Premium Yield Equity REIT Portfolio			PowerShares KBW Property & Casualty Insurance Portfolio
ASSETS:
Unaffiliated investments, at value	$	12,784,539		$	2,716,965		$	5,449,471		$	2,677,821
Affiliated investments, at value (Note 4)		786,054			—			—			—
Total investments, at value		13,570,593			2,716,965			5,449,471			2,677,821
Receivables:
Dividends		8,498			12,739			15,240			—
Foreign tax reclaims		—			189			—			—
Shares sold		—			—			1,362,563			—
Other assets		2,182			102			422			625
Total Assets		13,581,273			2,729,995			6,827,696			2,678,446
LIABILITIES:
Due to custodian		1,547			6,007			6,398			—
Payables:
Investments purchased		—			5,548			1,369,866			—
Accrued unitary management fees		3,642			875			1,140			753
Total Liabilities		5,189			12,430			1,377,404			753
NET ASSETS	$	13,576,084		$	2,717,565		$	5,450,292		$	2,677,693
NET ASSETS CONSIST OF:
Shares of beneficial interest	$	13,353,850		$	2,470,285		$	5,160,747		$	2,435,321
Undistributed net investment income (loss)		(1,399	)		14,662			6,163			1,617
Undistributed net realized gain (loss)		(8,624	)		(3,218	)		(8,472	)		100,330
Net unrealized appreciation		232,257			235,836			291,854			140,425
Net Assets	$	13,576,084		$	2,717,565		$	5,450,292		$	2,677,693
Shares outstanding (unlimited amount authorized, $0.01 par value)		550,000			100,000			200,000			100,000

Net asset value	$	24.68	$	27.18	$	27.25	$	26.78
Share price	$	24.72	$	27.19	$	27.26	$	26.79
Unaffiliated investments, at cost	$	12,564,121	$	2,481,129	$	5,157,617	$	2,537,396
Affiliated investments, at cost	$	774,215	$	—	$	—	$	—
Total investments, at cost	$	13,338,336	$	2,481,129	$	5,157,617	$	2,537,396

See Notes to Financial Statements.

10

Statements of Operations

For the Period November 29, 2010* through April 30, 2011 (Unaudited)

	PowerShares KBW High Dividend Yield Financial Portfolio			PowerShares KBW International Financial Portfolio			PowerShares KBW Premium Yield Equity REIT Portfolio			PowerShares KBW Property & Casualty Insurance Portfolio
INVESTMENT INCOME:
Unaffiliated dividend income	$	284,147		$	34,513		$	86,820		$	39,360
Affiliated dividend income (Note 4)		37,441			—			—			—
Foreign withholding tax		—			(4,038	)		—			—
Total Income		321,588			30,475			86,820			39,360
EXPENSES:
Unitary management fees		11,644			4,299			4,690			3,955
Other expenses		320			15			62			92
Total Expenses		11,964			4,314			4,752			4,047
Net Investment Income		309,624			26,161			82,068			35,313
REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain (loss) from:
Investments		(24,774	)		(5,605	)		(12,764	)		(11	)
In-kind redemptions		16,150			2,387			4,292			100,341
Net realized gain (loss)		(8,624	)		(3,218	)		(8,472	)		100,330
Net unrealized appreciation on investments		232,257			235,836			291,854			140,425
Net realized and unrealized gain		223,633			232,618			283,382			240,755
Net increase in net assets resulting from operations	$	533,257		$	258,779		$	365,450		$	276,068

*  Commencement of Investment Operations.

See Notes to Financial Statements.

11

Statements of Changes in Net Assets

For the Period November 29, 2010* through April 30, 2011 (Unaudited)

	PowerShares KBW High Dividend Yield Financial Portfolio			PowerShares KBW International Financial Portfolio			PowerShares KBW Premium Yield Equity REIT Portfolio			PowerShares KBW Property & Casualty Insurance Portfolio
OPERATIONS:
Net investment income	$	309,624		$	26,161		$	82,068		$	35,313
Net realized gain (loss)		(8,624	)		(3,218	)		(8,472	)		100,330
Net unrealized appreciation		232,257			235,836			291,854			140,425
Net increase in net assets resulting from operations		533,257			258,779			365,450			276,068
Undistributed net investment income (loss) included in the price of units issued and redeemed		48,947			—			4,007			(3,489	)
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income		(359,970	)		(11,499	)		(79,912	)		(30,207	)
SHAREHOLDER TRANSACTIONS:
Proceeds from shares sold		14,616,039			3,738,836			6,399,045			5,009,888
Value of shares repurchased		(1,213,242	)		(1,268,551	)		(1,234,291	)		(2,578,056	)
Net income (loss) equalization		(48,947	)		—			(4,007	)		3,489
Net increase in net assets resulting from shares transactions		13,353,850			2,470,285			5,160,747			2,435,321
Increase in Net Assets		13,576,084			2,717,565			5,450,292			2,677,693
NET ASSETS:
Beginning of period		—			—			—			—
End of period	$	13,576,084		$	2,717,565		$	5,450,292		$	2,677,693
Undistributed net investment income (loss) at end of period	$	(1,399	)	$	14,662		$	6,163		$	1,617
CHANGES IN SHARES OUTSTANDING:
Shares sold		600,000			150,000			250,000			200,000
Shares repurchased		(50,000	)		(50,000	)		(50,000	)		(100,000	)
Shares outstanding, beginning of period		—			—			—			—
Shares outstanding, end of period		550,000			100,000			200,000			100,000

*  Commencement of Investment Operations.

See Notes to Financial Statements.

12

Financial Highlights

PowerShares KBW High Dividend Yield Financial Portfolio

	For the Period November 29, 2010* through April 30, 2011 (Unaudited)
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	23.51
Net investment income**		0.91
Net realized and unrealized gain on investments		1.35
Total from investment operations		2.26
Distributions to shareholders from:
Net investment income		(1.09	)
Net asset value at end of period	$	24.68
Share price at end of period***	$	24.72
NET ASSET VALUE, TOTAL RETURN****		9.78	%(a)
SHARE PRICE TOTAL RETURN****		9.95	%(a)
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	13,576
Ratio to average net assets of:
Expenses>		0.36	%†
Net investment income		9.31	%†
Portfolio turnover rate ††		12	%
Undistributed net investment income included in price of units issued and redeemed**#	$	0.14

PowerShares KBW International Financial Portfolio

	For the Period November 29, 2010* through April 30, 2011 (Unaudited)
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	24.70
Net investment income**		0.26
Net realized and unrealized gain on investments		2.33
Total from investment operations		2.59
Distributions to shareholders from:
Net investment income		(0.11	)
Net asset value at end of period	$	27.18
Share price at end of period***	$	27.19
NET ASSET VALUE, TOTAL RETURN****		10.54	%(b)
SHARE PRICE TOTAL RETURN****		10.58	%(b)
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	2,718
Ratio to average net assets of:
Expenses		0.40	%†
Net investment income		2.43	%†
Portfolio turnover rate ††		3	%
Undistributed net investment income included in price of units issued and redeemed**#	$	—

*  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 the 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.

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

†  Annualized.

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

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

(a)  The net asset value total return from Fund Inception (December 2, 2010, first day of trading on the Exchange) to April 30, 2011 was 8.03%. The share price total return from Fund Inception to April 30, 2011 was 8.34%.

(b)  The net asset value total return from Fund Inception (December 2, 2010, first day of trading on the Exchange) to April 30, 2011 was 6.70%. The share price total return from Fund Inception to April 30, 2011 was 6.82%.

See Notes to Financial Statements.

13

Financial Highlights (Continued)

PowerShares KBW Premium Yield Equity REIT Portfolio

	For the Period November 29, 2010* through April 30, 2011 (Unaudited)
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	24.96
Net investment income**		0.62
Net realized and unrealized gain on investments		2.30
Total from investment operations		2.92
Distributions to shareholders from:
Net investment income		(0.63	)
Net asset value at end of period	$	27.25
Share price at end of period***	$	27.26
NET ASSET VALUE, TOTAL RETURN****		11.87	%(a)
SHARE PRICE TOTAL RETURN****		11.91	%(a)
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	5,450
Ratio to average net assets of:
Expenses		0.35	%†
Net investment income		6.13	%†
Portfolio turnover rate ††		22	%
Undistributed net investment income included in price of units issued and redeemed**#	$	0.03

PowerShares KBW Property & Casualty Insurance Portfolio

	For the Period November 29, 2010* through April 30, 2011 (Unaudited)
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	24.75
Net investment income**		0.30
Net realized and unrealized gain on investments		2.03
Total from investment operations		2.33
Distributions to shareholders from:
Net investment income		(0.30	)
Net asset value at end of period	$	26.78
Share price at end of period***	$	26.79
NET ASSET VALUE, TOTAL RETURN****		9.51	%(b)
SHARE PRICE TOTAL RETURN****		9.55	%(b)
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	2,678
Ratio to average net assets of:
Expenses		0.36	%†
Net investment income		3.13	%†
Portfolio turnover rate ††		2	%
Undistributed net investment income (loss) included in price of units issued and redeemed**#	$	(0.03	)

*  Commencement of Investment Operations.

**  Based on average shares outstanding.

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

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

†  Annualized.

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

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

(a)  The net asset value total return from Fund Inception (December 2, 2010, first day of trading on the Exchange) to April 30, 2011 was 11.11%. The share price total return from Fund inception to April 30, 2011 was 11.37%.

(b)  The net asset value total return from Fund Inception (December 2, 2010, first day of trading on the Exchange) to April 30, 2011 was 7.39%. The share price total return from Fund Inception to April 30, 2011 was 7.47%.

See Notes to Financial Statements.

14

Notes to Financial Statements

PowerShares Exchange-Traded Fund Trust II

April 30, 2011 (Unaudited)

Note 1. Organization

PowerShares Exchange-Traded Fund Trust II (the "Trust") was organized as a Massachusetts business trust on October 10, 2006 and is authorized to have multiple series of portfolios. The Trust is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the "1940 Act"). As of April 30, 2011, the Trust offered forty-five portfolios. This report includes the following portfolios:

Full Name	Short Name
PowerShares KBW High Dividend Yield Financial Portfolio	"KBW High Dividend Yield Financial Portfolio"
PowerShares KBW International Financial Portfolio	"KBW International Financial Portfolio"
PowerShares KBW Premium Yield Equity REIT Portfolio	"KBW Premium Yield Equity REIT Portfolio"
PowerShares KBW Property & Casualty	"KBW Property & Casualty Insurance Portfolio" Insurance 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").

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

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

Fund	Index
KBW High Dividend Yield Financial Portfolio	KBW Financial Sector Dividend Yield Index
KBW International Financial Portfolio	KBW Global ex-U.S. Financial Sector Index
KBW Premium Yield Equity REIT Portfolio	KBW Premium Yield Equity REIT Index
KBW Property & Casualty Insurance Portfolio	KBW Property & Casualty Index

Note 2. Significant Accounting Policies

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

A. Security Valuation

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

15

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust II

April 30, 2011 (Unaudited)

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. Securities with a demand feature exercisable with one to seven days are valued at par. 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.

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

16

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust II

April 30, 2011 (Unaudited)

approved by the Board of Trustees. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security's fair value.

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

B. Other Risks

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

Non-Diversified Fund Risk. Each Fund is 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.

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

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

Equity Securities Risk. The prices of equity securities change in response to many factors including the historical and prospective earnings of the issuer, the value of its assets, general economic conditions, interest rates, investor perceptions and market liquidity.

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

High Dividend Yield Securities Risk. The KBW High Dividend Yield Financial Portfolio's and the KBW Premium Yield Equity REIT Portfolio's investments in high yielding, dividend paying securities, at times, may be out of favor and underperform other market segments (e.g., growth stocks).

REIT Risk. The KBW High Dividend Yield Financial Portfolio's and the KBW Premium Yield Equity REIT Portfolio's investments in securities of real estate companies involve risks. Although the Funds will not invest in real estate directly, the REITs in which the Funds will invest will be subject to risks inherent

17

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust II

April 30, 2011 (Unaudited)

in the direct ownership of real estate. These risks include, but are not limited to, the risk of a possible lack of mortgage funds and associated interest rate risks, overbuilding, property vacancies, increases in property taxes and operating expenses, changes in zoning laws, losses due to environmental damages and changes in neighborhood values and appeal to purchasers.

Financial Sector Risk. The KBW High Dividend Yield Financial Portfolio's and KBW International Financial Portfolio's investments in securities of the financial sector involve risks. The market value of securities of issuers in the financial sector can be affected by factors such as adverse regulatory or economic occurrences affecting the financial sector, availability of credit, fluctuations in asset values, unstable interest rates, increased competition, continuing consolidations and development of new products and structures. Furthermore, increased government involvement in financial institutions, including measures such as taking ownership positions in such institutions, could result in a dilution in the value of the shares held by shareholders in such institutions.

Risk of Investing in BDCs. The KBW High Dividend Yield Financial Portfolio's investments in business development companies ("BDCs") involve risks. The Investment Company Act of 1940, as amended (the "1940 Act"), imposes certain restraints upon the operations of a BDC. Generally, little public information exists for private and thinly traded companies and there is a risk that investors may not be able to make a fully informed investment decision. With investments in debt instruments, there is a risk that the issuer may default on its payments or declare bankruptcy. The limitations on a BDC's asset mix and leverage may prohibit the way that the BDC raises capital. BDCs generally invest in less mature private companies which involve greater risk than well-established publicly-traded companies. To the extent that the Fund invests a portion of its assets in BDCs, a shareholder in the Fund will bear not only his or her proportionate share of the expenses of the Fund, but also, indirectly the expenses of the BDCs.

Foreign Institutions Risk. For KBW International Financial Portfolio, foreign companies, in general, are not subject to the regulatory requirements of U.S. companies and, as such, there may be less publicly available information about these companies. Moreover, foreign companies are often subject to less stringent requirements regarding accounting, auditing, financial reporting and record-keeping than are U.S. companies, and therefore, not all material information regarding these companies will be available.

Property and Casualty Insurance Industry Risk. The KBW Property & Casualty Insurance Portfolio's investments in securities of property and casualty insurance companies involve risks. Property and casualty insurance companies can be significantly affected by many factors, including changes in interest rates, general economic conditions, the imposition of premium rate caps, competition and pressure to compete globally, including price and marketing competition, and other changes in government regulation or tax law. In addition, different segments of the insurance industry can be significantly affected by mortality and morbidity rates, environmental clean-up costs and catastrophic events such as natural disasters and terrorist acts.

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.

18

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust II

April 30, 2011 (Unaudited)

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

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

D. Investment Income and Investment Transactions

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

E. Expenses

Each Fund has agreed to pay an annual unitary management fee to Invesco PowerShares Capital Management LLC (the "Adviser"). The Adviser has agreed to pay substantially all expenses of the Funds, including the cost of transfer agency, custody, fund administration, legal, audit and other services, except for distribution fees, if any, brokerage expenses, taxes, interest, litigation expenses, expenses of the investment companies that are paid indirectly as a result of share ownership of the investment companies in which KBW High Dividend Yield Financial Portfolio invests and other extraordinary expenses.

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

F. Dividends and Distributions to Shareholders

Each Fund declares and pays dividends from net investment income, if any, to its shareholders quarterly for the KBW International Financial Portfolio and KBW Property & Casualty Insurance, and monthly for the KBW Premium Yield Equity REIT Portfolio and KBW High Dividend Yield Financial Portfolio and records on ex-dividend date. Each Fund distributes net realized taxable capital gains, if any, generally annually in cash and records them on ex-dividend date. Such distributions on a tax basis are determined in conformity with income tax regulations which may differ from GAAP. Distributions in excess of tax basis earnings and profits, if any, are reported in such Fund's financial statements as a tax return of capital at fiscal period-end.

G. Equalization

All of the Funds use the accounting practice of equalization. This accounting method is used to keep the continuing shareholder's per Share equity in undistributed net investment income from being affected by the continuous sales and redemptions of capital Shares. Equalization is calculated on a per Share basis whereby a portion of the proceeds from the sales and cost of repurchases of capital Shares is applied to undistributed net investment income. The amount of equalization is disclosed in the Statements of

19

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust II

April 30, 2011 (Unaudited)

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. As compensation for its services, each Fund has agreed to pay the Adviser an annual unitary management fee. The Adviser has agreed to pay substantially all expenses of the Funds, including the cost of transfer agency, custody, fund administration, legal, audit and other services, except for distribution fees, if any, brokerage expenses, taxes, interest, litigation expenses, expenses of the investment companies that are paid indirectly as a result of share ownership of the investment companies in which KBW High Dividend Yield Financial Portfolio invests and other extraordinary expenses. Each Fund (except for the KBW International Financial Portfolio) has agreed to pay the Adviser an annual unitary management fee of 0.35% of the Fund's average daily net assets. The KBW International Financial Portfolio has agreed to pay the Adviser an annual unitary management fee of 0.40% of the Fund's average daily net assets.

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

The Adviser has entered into a licensing agreement for each Fund with Keefe, Bruyette & Woods, Inc. (the "Licensor"). Each Underlying Index name trademark is owned by the 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 each Fund may track its respective Index.

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 Mortgage Capital, Inc. is considered to be affiliated with the Fund. The table below shows the transactions in and earnings from the investment in Invesco Mortgage Capital, Inc. for the six-month period ended April 30, 2011.

KBW High Dividend Yield Financial Portfolio
	Value 10/31/10		Purchases at Cost		Proceeds from Sales			Change in Unrealized Appreciation		Realized Gain (Loss)			Value 04/30/11		Dividend Income
Invesco Mortgage Capital, Inc.	$	—	$	801,303	$	(25,873	)	$	11,839	$	(1,215	)	$	786,054	$	37,441

20

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust II

April 30, 2011 (Unaudited)

Note 5. Additional Valuation Information

GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3) generally when market prices are not readily available or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment's assigned level:

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

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

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

As of April 30, 2011, the securities in each Fund were valued based on Level 1 inputs. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments. With respect to each Fund, during the six-month period ended April 30, 2011, there were no significant transfers between investment levels.

Note 6. Federal Income Tax

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from GAAP. Reclassifications are made to the Fund's capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund's fiscal period-end.

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

21

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust II

April 30, 2011 (Unaudited)

Note 7. Investment Transactions

For the period ended April 30, 2011, the cost of securities purchased and proceeds from sales of securities, excluding short-term securities, money market funds and in-kind transactions, were as follows:

	Purchases		Sales
KBW High Dividend Yield Financial Portfolio	$	982,800	$	986,784
KBW International Financial Portfolio		84,053		75,492
KBW Premium Yield Equity REIT Portfolio		871,666		779,500
KBW Property & Casualty Insurance Portfolio		87,593		65,745

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

	Securities Received		Securities Delivered
KBW High Dividend Yield Financial Portfolio	$	13,676,849	$	325,905
KBW International Financial Portfolio		2,513,753		37,967
KBW Premium Yield Equity REIT Portfolio		5,313,780		239,857
KBW Property & Casualty Insurance Portfolio		4,991,738		2,577,884

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

At April 30, 2011, costs of investments for tax and financial reporting purposes were as follows:

	Cost		Net Unrealized Appreciation		Gross Unrealized Appreciation		Gross Unrealized (Depreciation)
KBW High Dividend Yield Financial Portfolio	$	13,338,336	$	232,257	$	366,191	$	(133,934	)
KBW International Financial Portfolio		2,481,129		235,836		300,588		(64,752	)
KBW Premium Yield Equity REIT Portfolio		5,157,617		291,854		319,541		(27,687	)
KBW Property & Casualty Insurance Portfolio		2,537,396		140,425		185,710		(45,285	)

Note 8. Trustees' Fees

The Funds compensate each Trustee who is not an "interested person" as defined in the 1940 Act (an "Independent Trustee"). The Adviser, as result of the unitary management fee, pays for such compensation. The Non-Independent Trustees of the Trust do not receive any Trustees' fees.

The Trust has adopted a deferred compensation plan (the "Plan"). Under the Plan, an Independent Trustee who has executed a Deferred Fee Agreement (a "Participating Trustee") may defer receipt of all or a portion of his compensation ("Deferral Fees"). Such Deferral Fees are deemed to be invested in select PowerShares Funds. The Deferral Fees payable to the Participating Trustee are valued as of the date such Deferral Fees would have been paid to the Participating Trustee. The value increases with contributions or

22

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust II

April 30, 2011 (Unaudited)

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 9. 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 10. 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.

23

Board Considerations Regarding Approval of Investment Advisory Agreement for the New KBW Funds

At a meeting held on September 23, 2010, the Board of Trustees of the PowerShares Exchange-Traded Fund Trust II (the "Trust"), including the Independent Trustees, approved the Investment Advisory Agreement between Invesco PowerShares Capital Management LLC (the "Adviser") and the Trust for the PowerShares KBW Premium Yield Equity REIT Portfolio, PowerShares KBW High Dividend Yield Financial Portfolio, PowerShares KBW International Financial Portfolio and PowerShares KBW Property & Casualty Insurance Portfolio (each, a "New Fund" and collectively, the "New Funds").

The Trustees reviewed information from the Adviser describing: (i) the nature, extent and quality of services to be provided, (ii) the costs of services to be provided and estimated profits to be realized by the Adviser, (iii) the extent to which economies of scale may be realized as each New Fund grows, (iv) whether fee levels reflect any possible economies of scale for the benefit of Fund shareholders, (v) comparisons of services rendered and amounts paid to other registered investment companies and (vi) any benefits to be realized by the Adviser from its relationships with the New Funds. Based on all of the information considered and the conclusions reached, the Board, including the Independent Trustees, determined to approve the Investment Advisory Agreement for each New 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 to be performed by the Adviser for each New Fund, information describing the Adviser's current organization and staffing, including operations assistance provided by the Adviser's parent organization, Invesco Ltd., and the background and experience of the persons who will be responsible for the day-to-day management of the New Funds, and considered the quality of services provided by the Adviser to other exchange-traded funds ("ETFs"). The Trustees also reviewed information related to the Adviser's portfolio transaction policies and procedures, as well as reports on the correlation and tracking error between the underlying indexes and the performance of other ETFs for which the Adviser serves as investment adviser.

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

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

Fees, Expenses and Profitability. The Trustees reviewed and discussed the information provided by the Adviser on each New Fund's proposed advisory fee, as compared to the expense ratios of various comparable ETFs for each New Fund, as well as the average and median expense ratios of each New Fund's respective Lipper peer group, which includes ETF and non-ETF funds. The Trustees noted the information compiled by the Adviser from Lipper Inc. databases on the expense ratios and advisory fees of various types of ETFs and open-end actively managed funds that they had received in connection with the 2010 contract renewal process for other ETFs for which the Adviser serves as investment adviser. The Trustees noted that the annual advisory fee to be charged to each New Fund was a unitary fee, and that the Adviser has agreed to pay all other expenses of the New Fund except brokerage commissions and other trading expenses, taxes, interest and extraordinary expenses. The Trustees noted that each New

24

Board Considerations Regarding Approval of Investment Advisory Agreement for the New KBW Funds (Continued)

Fund's unitary advisory fee generally was lower than or within an acceptable range of the expense ratios of the ETFs in its ETF universe, and was lower than the average and median expense ratios of each New Fund's Lipper peer group. The Trustees considered each New Fund's proposed advisory fee in light of the higher administrative, operational and management oversight costs. The Trustees also noted that each New Fund's licensing fee was payable out of the unitary fee to be charged to the New Fund. The Trustees also noted the Adviser's representation that each New Fund's advisory fee was competitive with those of its ETF peers. The Board concluded that the unitary advisory fee to be charged to each New Fund is reasonable and appropriate in light of the services expected to be provided.

In conjunction with their review of the unitary advisory fee, the Trustees also considered information provided by the Adviser on the costs of services for the New Funds and the fees to be paid by the Adviser. The Trustees considered information provided by the Adviser on its profitability, as well as any profits or losses realized by the Adviser from its relationship with other ETFs for which it serves as investment adviser. The Trustees noted the Adviser's statement that its costs of managing those ETFs generally exceed the amount payable as management fees under the investment advisory agreement for those funds. The Trustees concluded that the estimated profits to be realized by the Adviser with respect to the New Funds appeared to be reasonable in comparison with the cost of providing investment advisory services to the New Funds.

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 may be realized as each New Fund grows and whether fee levels reflect economies of scale for the benefit of shareholders. The Trustees noted that any reduction in fixed costs associated with the management of the New Funds would be enjoyed by the Adviser, but that a unitary fee provides certainty in expenses for the New Funds. The Trustees considered whether the advisory fee rate for each New Fund is reasonable in relation to the projected asset size of the New Fund, and concluded that the flat advisory fee was reasonable and appropriate.

The Trustees noted that the Adviser had not identified any further benefits that it would derive from its relationships with the New 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 Investment Advisory Agreement for each New Fund. No single factor was determinative in the Board's analysis.

25

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2011 Semi-Annual Report to Shareholders

April 30, 2011

PowerShares Senior Loan Portfolio (BKLN)

Table of Contents

Frequency Distribution of Discounts & Premiums	2
Fees and Expenses	4
Schedule of Investments
PowerShares Senior Loan Portfolio (BKLN)	5
Statement of Assets and Liabilities	10
Statement of Operations	11
Statement of Changes in Net Assets	12
Statement of Cash Flows	13
Financial Highlights	14
Notes to Financial Statements	15
Board Considerations Regarding Approval of Investment Advisory and Sub-Advisory Agreements	25

Frequency Distribution of Discounts & Premiums

Since Inception through April 30, 2011

					Closing Price Above NAV (bps)
Ticker	Fund Name	Inception	Trading Days		0-24		25-49		50-99		100-149		150-199		200+
BKLN	PowerShares Senior Loan Portfolio	03/03/11		41		5		11		22		0		0		0

2

	Closing Price Below NAV (bps)
Ticker	-0-24		-25-49		-50-99		-100-149		-150-199		-200+
BKLN		0		2		1		0		0		0

3

Fees and Expenses

As a shareholder of a Fund of the PowerShares Exchange-Traded Fund Trust II, you incur a unitary management fee. The expense examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund 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 (or shorter) period ended April 30, 2011.

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

Actual Expenses

The first line in the following table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading "Expenses Paid During the 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 the 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 Fund 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 March 3, 2011 (Fund Inception)		Ending Account Value April 30, 2011		Annualized Expense Ratio Based on the Number of Days in the Period			Expenses Paid During the Period March 3, 2011 (Fund Inception) to April 30, 2011 (1)
PowerShares Senior Loan Portfolio Actual		$1,000.00		$1,010.58		0.65%			$1.04
Hypothetical (5% return before expenses)	$	1,000.00	$	1,021.57		0.65	%	$	3.26

⁽¹⁾  Expenses are calculated using the annualized expense ratio, which represents the ongoing expenses as a percentage of net assets for the period March 3, 2011 (Fund Inception) to April 30, 2011. Expenses are calculated by multiplying the Fund's annualized expense ratio by the average account value for the period; then multiplying the result by 59 and then dividing the result by 365. Hypothetical 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.

4

Portfolio Composition

PowerShares Senior Loan Portfolio

Credit Quality Rating Breakdown (% of the Fund's Net Assets) as of April 30, 2011 (Unaudited)

BBB	0.8
BBB-	1.0
BB	4.4
BB-	10.7
B+	28.7
B	19.5
B-	11.2
CCC+	2.4
CCC	4.7
Not-Rated	3.4
Equity	7.8
Bond	4.4
Money Market Fund	14.4
Liabilities in excess of other assets	(13.4	)

Schedule of Investments

PowerShares Senior Loan Portfolio

April 30, 2011 (Unaudited)

Principal Amount			Interest Rate			Maturity Date	Value
		Senior Floating Rate Loans—86.8% (a)(b)
		Advertising—2.2%
$	998,747	Getty Images, Inc., Term Loan B (c)		5.250	%	11/7/16	$	1,011,386
	636,611	RH Donnelley, Inc., Term Loan D3-EXIT (c)		9.000		10/24/14		503,101
	998,750	Visant Corp. (c)		5.250		12/22/16		1,005,407
								2,519,894
		Aerospace/Defense—1.4%
		Hawker Beechcraft Acquisition Co. LLC
	40,741	Term Loan (c)		2.070		3/26/14		35,988
	658,836	Term Loan OLD (c)		2.307		3/26/14		581,973
	997,500	TransDigm, Inc.		4.000		2/14/17		1,008,378
								1,626,339
		Airlines—0.8%
	500,000	United Air Lines, Inc., Term Loan B		2.313		2/3/14		487,918
	542,361	US Airways Group, Inc.		2.753		3/21/14		500,705
								988,623
		Auto Manufacturers—1.9%
	2,200,675	Ford Motor Co., Term Loan B1		3.010		12/16/13		2,205,802
		Auto Parts & Equipment—3.0%
	1,497,114	Allison Transmission, Inc., Term Loan B (c)		3.010		8/7/14		1,498,634
		Federal-Mogul Corp.
	1,185,809	Term Loan B-EXIT (c)		2.198		12/29/14		1,158,808
	337,838	Term Loan C-EXIT (c)				12/27/15		330,145
	500,000	Goodyear Tire & Rubber Co. (The)		1.960		4/30/14		492,290
								3,479,877
		Banks—1.4%
	1,625,000	CIT Group, Inc., Term Loan 3-DD		6.250		8/11/15		1,652,422

See Notes to Financial Statements.

5

Schedule of Investments (Continued)

PowerShares Senior Loan Portfolio

April 30, 2011 (Unaudited)

Principal Amount			Interest Rate			Maturity Date	Value
		Senior Floating Rate Loans (Continued)
		Building Materials—0.9%
$	1,048,622	Goodman Global, Inc., Term Loan B-NEW (c)		5.750	%	10/28/16	$	1,058,961
		Chemicals—3.6%
	1,000,000	Celanese Holdings, LLC, Term Loan C-EXT		3.303		10/31/16		1,009,600
	500,000	Huntsman International, LLC, Term Loan B-NONEXT		1.742		4/21/14		494,553
	498,705	ISP Chemco, LLC, Term Loan B		1.750		6/4/14		492,733
	498,213	PQ Corp.		3.560		7/30/14		486,607
	673,313	Styron, LLC, Term Loan B		6.000		8/2/17		682,402
	997,500	Univar, Inc., Term Loan B		5.000		6/30/17		1,006,168
								4,172,063
		Commercial Services—3.7%
		ARAMARK Corp.
	61,706	Term Loan		3.494		7/26/16		61,912
	938,293	Term Loan EXT		3.557		7/26/16		941,422
	1,000,000	Hertz Corp. (The) (c)				3/11/18		1,010,110
	500,000	KAR Auction Services, Inc.		3.000		10/18/13		499,845
		ServiceMaster Co. (The)
	1,679,485	Term Loan B (c)		2.810		7/24/14		1,655,812
	67,925	Term Loan DD (c)(d)		—		7/24/14		66,967
								4,236,068
		Computers—2.0%
		SunGard Data Systems, Inc.
	500,000	Term Loan A-NONEXT (c)(d)		—		2/28/14		493,250
	1,850,000	Term Loan B		3.912		2/26/16		1,866,410
								2,359,660
		Diversified Financial Services—5.1%
	2,150,000	AGFS Funding Co., Term Loan NEW (c)		7.250		4/21/15		2,155,182
	998,750	Fifth Third Processing Solutions, Inc., Term Loan B (c)		5.500		11/3/16		1,008,348
		Nuveen Investments, Inc.
	600,000	Term Loan B-NONEXT		3.307		11/13/14		583,455
	750,000	Term Loan EXT		5.807		5/12/17		753,518
	998,750	Pinafore, LLC, Term Loan B-NEW (c)		4.250		9/29/16		1,009,267
	500,000	Pinnacle Foods Finance, LLC, Term Loan B-OLD		2.743		4/2/14		499,093
								6,008,863
		Electric—3.7%
		Texas Competitive Electric Holdings Co. LLC
	1,164,341	Term Loan B1 (c)		3.746		10/10/14		1,006,026
	2,480,233	Term Loan B2 (c)		3.803		10/10/14		2,142,995
	1,393,798	Term Loan B3		3.803		10/10/14		1,204,284
								4,353,305
		Entertainment—1.0%
	548,625	Cedar Fair L.P.		4.000		2/15/17		554,536
	600,000	Penn National Gaming, Inc., Term Loan B		2.050		10/3/12		600,000
								1,154,536
		Food—2.1%
	1,500,000	Del Monte Foods Co., Term Loan B		4.500		3/8/18		1,508,055
	997,409	U.S. Foodservice		2.760		7/3/14		968,619
								2,476,674

See Notes to Financial Statements.

6

Schedule of Investments (Continued)

PowerShares Senior Loan Portfolio

April 30, 2011 (Unaudited)

Principal Amount			Interest Rate			Maturity Date	Value
		Senior Floating Rate Loans (Continued)
		Forest Products & Paper—0.8%
$	998,684	Georgia-Pacific, LLC, Term Loan B1-OLD (c)		2.307	%	12/21/12	$	1,000,077
		Healthcare - Products—2.5%
	498,711	Bausch & Lomb, Inc., Term Loan B		3.557		4/24/15		499,709
	1,498,708	Biomet, Inc., Term Loan B (c)		3.308		3/25/15		1,499,412
	1,000,000	Carestream Health, Inc., Term Loan B		5.000		2/25/17		940,240
								2,939,361
		Healthcare - Services—8.2%
		CHS/Community Health Systems, Inc.
	2,411,666	Term Loan B-NONEXT		2.561		7/25/14		2,354,521
	85,440	Term Loan DD		2.561		7/25/14		83,416
	998,747	Term Loan EXT (c)		3.811		1/25/17		983,596
	1,048,625	DaVita, Inc., Term Loan B-NEW (c)		4.500		10/20/16		1,059,190
	1,000,000	Fresenius Medical Care Holdings, Inc., Term Loan B-OLD		1.682		3/31/13		1,000,075
		HCA, Inc.
	500,000	Term Loan A1		1.557		11/19/12		499,875
	1,250,000	Term Loan B1		2.557		11/18/13		1,250,863
	750,000	Term Loan B2		3.553		3/31/17		752,051
	1,747,229	Health Management Associates, Inc., Term Loan B (c)		2.057		2/28/14		1,725,520
								9,709,107
		Household Products/Wares—0.6%
	700,000	Reynolds Group Holdings, Inc., Term Loan E		4.250		2/9/18		704,774
		Insurance—0.8%
	990,531	Asurion Corp., Term Loan B (c)		3.312		7/3/14		987,777
		Investment Companies—1.0%
	1,234,746	Royalty Pharma AG, Term Loan B (c)		2.557		4/16/13		1,236,296
		Leisure Time—1.4%
	1,841,169	Sabre, Inc. (c)		2.304		9/30/14		1,673,926
		Lodging—4.6%
		Caesars Entertainment Operating Co., Inc.
	1,050,000	Term Loan B1		3.303		1/28/15		985,588
	2,900,000	Term Loan B2		3.303		1/28/15		2,722,099
	548,259	Term Loan B3		3.307		1/28/15		514,626
		Las Vegas Sands, LLC
	1,123,231	Term Loan B-EXT (c)(d)		—		11/23/16		1,107,084
	125,513	Term Loan I-DD-EXT (c)(d)		—		11/23/16		123,709
								5,453,106
		Media—15.0%
	1,747,416	Cengage Learning Acquisitions, Inc. (c)		2.500		7/3/14		1,685,164
	1,498,701	Cequel Communications, LLC (c)		2.260		11/5/13		1,494,850
		Charter Communications Operating, LLC
	498,711	Term Loan B1-OLD		2.250		3/6/14		498,973
	1,847,854	Term Loan C-EXT (c)		3.560		9/6/16		1,856,511
	2,450,000	Clear Channel Communications, Inc., Term Loan B (c)		3.896		1/28/16		2,185,105
		CSC Holdings, Inc.
	1,296,588	Term Loan B2-NEW		2.059		3/29/16		1,303,013
	500,000	Term Loan B3 (c)				3/29/16		502,465

See Notes to Financial Statements.

7

Schedule of Investments (Continued)

PowerShares Senior Loan Portfolio

April 30, 2011 (Unaudited)

Principal Amount			Interest Rate			Maturity Date	Value
		Senior Floating Rate Loans (Continued)
		Nielsen Finance, LLC
$	650,000	Term Loan A		2.231	%	8/9/13	$	648,619
	822,927	Term Loan C-EXT		3.759		5/2/16		824,470
	1,375,000	SuperMedia, Inc., Term Loan B-EXIT (c)		10.853		12/31/15		926,867
	3,000,000	Tribune Co., Term Loan B		5.250		6/4/14		2,097,915
	997,500	TWCC Holding Corp., Term Loan B		4.250		2/11/17		1,009,415
		Univision Communications, Inc.
	520,385	Term Loan B-NONEXT		2.246		9/29/14		510,467
	2,216,430	Term Loan EXT (c)		4.496		3/31/17		2,172,211
								17,716,045
		Miscellaneous Manufacturing—0.8%
	1,022,582	Harland Clarke Holdings, Corp., Term Loan B		2.807		6/30/14		985,299
		Real Estate—1.0%
		Realogy Corp.
	1,096,973	Term Loan B-EXT (c)		4.562		10/10/16		1,035,115
	102,876	Term Loan NONEXT (c)		4.513		10/10/16		97,075
								1,132,190
		Retail—4.4%
	1,183,094	Claire's Stores, Inc., Term Loan B (c)		3.054		5/29/14		1,122,733
	1,000,000	Dollar General Corp., Term Loan B1 (c)		3.054		7/7/14		1,001,500
	750,000	Michaels Stores, Inc., Term Loan B1		2.563		10/31/13		745,129
	500,000	Neiman Marcus Group, Inc. (The), Term Loan B2		4.310		4/6/16		501,535
	498,418	OSI Restaurant Partners, LLC		2.563		6/14/14		489,950
	990,000	Petco Animal Supplies, Inc., Term Loan B-NEW		4.500		11/24/17		999,776
	510,256	Rite Aid Corp., Term Loan 2		1.970		6/4/14		492,504
								5,353,127
		Semiconductors—1.2%
	1,397,895	Freescale Semiconductor, Inc. (c)		4.494		12/1/16		1,399,649
		Software—5.3%
		First Data Corp.
	1,924,116	Term Loan B1-OLD (c)		3.002		9/24/14		1,830,007
	1,860,960	Term Loan B2-OLD (c)		3.002		9/24/14		1,771,401
	2,250,875	Term Loan B3-OLD (c)		3.002		9/24/14		2,142,956
	468,043	MSCI, Inc., Term Loan B1		3.750		3/14/17		475,064
								6,219,428
		Telecommunications—6.4%
	1,248,049	Avaya, Inc., Term Loan B3-EXT (c)		4.811		10/26/17		1,222,183
	600,000	Insight Midwest Holdings, LLC, Term Loan B (c)				4/7/14		594,810
	2,000,000	Intelsat Jackson Holdings S.A., Term Loan B-NEW (c)		5.250		4/2/18		2,022,030
	1,000,000	Level 3 Financing, Inc., Term Loan A-OLD (c)		2.553		3/13/14		987,015
	498,750	Syniverse Holdings, Inc., Term Loan NEW		5.250		12/21/17		504,466
		Telesat Canada
	919,711	Term Loan I (Canada) (c)		3.250		10/31/14		920,691
	79,001	Term Loan II-DD (c)		3.250		10/31/14		79,085
	600,000	UPC Financing Partnership, Term Loan X		3.744		12/31/17		602,358
	750,000	Windstream Corp., Term Loan B2-EXT (c)				12/17/15		753,746
								7,686,384
		Total Senior Floating Rate Loans (Cost $102,602,186)						102,489,633

See Notes to Financial Statements.

8

Schedule of Investments (Continued)

PowerShares Senior Loan Portfolio

April 30, 2011 (Unaudited)

Number of Shares							Value
		Closed-End Funds—7.8%
	15,745	BlackRock Floating Rate Income *					$	246,409
	18,761	Eaton Vance Senior Floating-Rate Trust *						315,748
	301,078	Eaton Vance Senior Income Trust *						2,203,891
	171,542	First Trust Senior Floating Rate Income Fund II *						2,643,462
	416,670	ING Prime Rate Trust *						2,608,354
	98,390	LMP Corporate Loan Fund, Inc. *						1,232,827
		Total Closed-End Funds (Cost $9,146,388)						9,250,691
Principal Amount			Interest Rate			Maturity Date
		Corporate Bonds—4.4%
		Electric—1.8%
$	1,250,000	Calpine Corp. (e)		7.250	%	10/15/17		1,318,750
	750,000	Calpine Corp. (e)		7.875		1/15/23		799,688
								2,118,438
		Household Products/Wares—1.3%
	1,500,000	Reynolds Group Holdings Ltd., (e)		7.125		4/15/19		1,571,250
		Packaging & Containers—1.3%
	1,500,000	Berry Plastics Corp. (f)		5.028		2/15/15		1,485,000
		Total Corporate Bonds (Cost $5,137,715)						5,174,688
Number of Shares
		Money Market Fund—14.4%
	16,942,874	Bank of New York (The) Cash Reserve (g) (Cost $16,942,874)						16,942,874
		Total Investments (Cost $133,829,163)—113.4%						133,857,886
		Liabilities in excess of other assets—(13.4)%						(15,798,186	)
		Net Assets—100.0%					$	118,059,700

Notes to Schedule of Investments:

^(a)  Senior secured corporate loans and senior secured debt securities are, at present, not readily marketable, not registered under the Securities Act of 1933, as amended and may be subject to contractual and legal restrictions on sale. Senior secured corporate loans and senior secured debt securities in the Fund's portfolio generally have variable rates which adjust to a base, such as the London Inter-Bank Offered Rate ("LIBOR"), on set dates, typically every 30 days but not greater than one year, and/or have interest rates that float at a margin above a widely recognized base lending rate such as the Prime Rate of a designed U.S. bank.

^(b)  Senior secured floating rate interests often require prepayments from excess cash flow or permit the borrower to repay at its election. The degree to which borrowers repay, whether as a contractual requirement or at their election, cannot be predicted with accuracy. As a result, the actual remaining maturity may be substantially less than the stated maturities shown. However, it is anticipated that the senior secured floating rate interests will have a expected average life of three to five years.

^(c)  All or a portion of this holding is subject to unfunded loan commitments. See Note 7.

^(d)  This floating rate interest will settle after April 30, 2011, at which time the interest rate will be determined.

^(e)  Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended. The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at April 30, 2011 was $3,689,688, which represented 3.00% of the Fund's Net Assets.

^(f)  Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on April 30, 2011.

^(g)  Security is considered a cash equivalent for the purpose of the Statement of Cash Flows. See Note 2C.

*  Non-income producing security.

See Notes to Financial Statements.

9

Statement of Assets and Liabilities

PowerShares Senior Loan Portfolio

April 30, 2011 (Unaudited)

ASSETS:
Investments, at value	$	133,857,886
Receivables:
Investments sold		80,086,182
Shares sold		12,616,111
Interest		174,919
Total Assets		226,735,098
LIABILITIES:
Due to custodian		789,736
Payables:
Investments purchased		107,836,871
Accrued advisory fees		48,791
Total Liabilities		108,675,398
NET ASSETS	$	118,059,700
NET ASSETS CONSIST OF:
Shares of beneficial interest	$	117,799,752
Undistributed net investment income		225,934
Undistributed net realized gain		5,291
Net unrealized appreciation		28,723
Net Assets	$	118,059,700
Shares outstanding (unlimited amount authorized, $0.01 par value)		4,700,100
Net asset value	$	25.12
Share price	$	25.28
Investments, at cost	$	133,829,163

See Notes to Financial Statements.

10

Statement of Operations

PowerShares Senior Loan Portfolio

For the Period March 1, 2011* through April 30, 2011 (Unaudited)

INVESTMENT INCOME:
Interest income	$	424,235
Dividend income		58,440
Total Income		482,675
EXPENSES:
Advisory fees		80,871
Total Expenses		80,871
Net Investment Income		401,804
REALIZED AND UNREALIZED GAIN ON:
Net realized gain		5,291
Net unrealized appreciation		28,723
Net realized and unrealized gain		34,014
Net increase in net assets resulting from operations	$	435,818

*  Commencement of Investment Operations.

See Notes to Financial Statements.

11

Statement of Changes in Net Assets

PowerShares Senior Loan Portfolio

	For the Period March 1, 2011* through April 30, 2011 (Unaudited)
OPERATIONS:
Net investment income	$	401,804
Net realized gain		5,291
Net unrealized appreciation		28,723
Net increase in net assets resulting from operations		435,818
Undistributed net investment income included in the price of units issued and redeemed		111,060
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income		(286,930	)
SHAREHOLDER TRANSACTIONS:
Proceeds from shares sold		117,910,812
Net income equalization		(111,060	)
Net increase in net assets resulting from shares transactions		117,799,752
Increase in Net Assets		118,059,700
NET ASSETS:
Beginning of period		—
End of period		118,059,700
Undistributed net investment income at end of period	$	225,934
CHANGES IN SHARES OUTSTANDING:
Shares sold		4,700,100
Shares repurchased		—
Shares outstanding, beginning of period		—
Shares outstanding, end of period		4,700,100

*  Commencement of Investment Operations.

See Notes to Financial Statements.

12

Statement of Cash Flows

PowerShares Senior Loan Portfolio

For the Period March 1, 2011* through April 30, 2011 (Unaudited)

CASH PROVIDED BY OPERATING ACTIVITIES
Net increase in net assets resulting from operations	$	435,818
ADJUSTMENTS TO RECONCILE NET INCREASE IN NET ASSETS TO NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES:
Purchases of investments		(202,453,611	)
Proceeds from disposition of investments sold		85,644,481
Increase in receivables		(92,877,212	)
Amortization of premiums and accretion of discounts on investment securities		(71,868	)
Increase in payables and accrued expenses		107,885,662
Unrealized appreciation on investments		(28,723	)
Net realized gain from investments securities		(5,291	)
Net cash provided by (used in) operating activities		(101,470,744	)
CASH PROVIDED BY FINANCING ACTIVITIES
Dividends paid to shareholders		(286,930	)
Proceeds from shares of beneficial interest sold		117,910,812
Increase in payable for amount due to custodian		789,736
Net cash provided by financing activities		118,413,618
Net increase in cash and cash equivalents		16,942,874
Cash and cash equivalents at beginning of period		—
Cash and cash equivalents at end of period	$	16,942,874

*  Commencement of Investment Operations.

See Notes to Financial Statements.

13

Financial Highlights

PowerShares Senior Loan Portfolio

	For the Period March 1, 2011* through April 30, 2011 (Unaudited)
PER SHARE OPERATING PERFORMANCE:
Net asset value at beginning of period	$	25.00
Net investment income**		0.11
Net realized and unrealized gain on investments		0.08
Total from investment operations		0.19
Distributions to shareholders from:
Net investment income		(0.07	)
Net asset value at end of period	$	25.12
Share price at end of period***	$	25.28
NET ASSET VALUE, TOTAL RETURN****		0.77	%(a)
SHARE PRICE TOTAL RETURN****		1.42	%(a)
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of period (000's omitted)	$	118,060
Ratio to average net assets of:
Expenses>		0.63	%†
Net investment income		3.12	%†
Portfolio turnover rate ††		92	%
Undistributed net investment income included in price of units issued and redeemed**#	$	0.03

*  Commencement of Investment Operations.

**  Based on average shares outstanding.

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

****  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Share price total return is calculated assuming an initial investment made at the share price at the beginning of the period, reinvestment of all dividends and distributions at share price during the period, and the 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.

>  In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the investment companies in which the Fund invests. The effects of the investment companies' expenses are included in the Fund's total return.

†  Annualized.

††  Portfolio turnover rate is not annualized.

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

(a)  The net asset value total return from Fund Inception (March 3, 2011, first day of trading on the Exchange) to April 30, 2011 was 1.06%. The share price total return from Fund Inception to April 30, 2011 was 1.13%.

See Notes to Financial Statements.

14

Notes to Financial Statements

PowerShares Exchange-Traded Fund Trust II

April 30, 2011 (Unaudited)

Note 1. Organization

PowerShares Exchange-Traded Fund Trust II (the "Trust") was organized as a Massachusetts business trust on October 10, 2006 and is authorized to have multiple series of portfolios. The Trust is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the "1940 Act"). As of April 30, 2011, the Trust offered forty-five portfolios. This report includes the following portfolio:

Full Name	Short Name
PowerShares Senior Loan Portfolio	Senior Loan Portfolio

The portfolio (the "Fund") represents a separate series of the Trust. The shares of the Fund are referred to herein as "Shares" or "Fund's Shares." The Fund's Shares are listed and traded on the NYSE Arca, Inc.

The Fund's market price may differ to some degree from the net asset value ("NAV") of the Fund's Shares. Unlike conventional mutual funds, the 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 for cash only. Except when aggregated in Creation Units by Authorized Participants, the Shares are not individually redeemable securities of the Fund.

The investment objective of the Fund is to seek investment results that correspond (before fees and expenses) generally to the price and yield of the S&P/LSTA U.S. Leveraged Loan 100 Index (the "Underlying Index").

Note 2. Significant Accounting Policies

The preparation of the financial statements in accordance with Generally Accepted Accounting Principles ("GAAP") in the United States of America requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements, including estimates and assumptions related to taxation. Actual results could differ from these estimates. In addition, the Fund monitors 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

Senior secured floating rate loans and senior secured floating rate debt securities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may reflect appropriate factors such as ratings, tranche type, industry, company performance, spread, individual trading characteristics, institution-size trading in similar groups of securities and other market data.

Securities, including restricted securities, are generally 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

15

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust II

April 30, 2011 (Unaudited)

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. Securities with a demand feature exercisable with one to seven days are valued at par. 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 depository receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.

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

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

16

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust II

April 30, 2011 (Unaudited)

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

Risk of Investing in Loans. Investments in loans are subject to interest rate risk and credit risk. Interest rate risk refers to fluctuations in the value of a loan resulting from changes in the general level of interest rates. Credit risk refers to the possibility that the borrower of a loan will be unable and/or unwilling to make timely interest payments and/or repay the principal on its obligation. Default in the payment of interest or principal on a loan will result in a reduction in the value of the loan and consequently a reduction in the value of the Fund's investments and a potential decrease in the NAV of the Fund. There can be no assurance that the collateral for a loan would satisfy the borrower's obligation in the event of non-payment of scheduled interest or principal or that such collateral could be readily liquidated. In the event of the bankruptcy of a borrower, the Fund's access to the collateral may be limited by bankruptcy or other insolvency loans and, therefore, the Fund could experience delays or limitations with respect to its ability to realize the benefits of the collateral securing a loan.

There is no organized exchange on which loans are traded and reliable market quotations may not be readily available. Therefore, the Fund may not realize full value in the event of the need to sell a loan. Some loans are subject to the risk that a court, pursuant to fraudulent conveyance or other similar laws, could subordinate the loans to presently existing or future indebtedness of the borrower or take other action detrimental to lenders, including the Fund, such as invalidation of loans or causing interest previously paid to be refunded to the borrower. Investments in loans are also subject to the risk of changes in legislation or state or federal regulations, which may adversely affect the availability of loans for investment. Generally there is less readily available, reliable information about most loans than is the case for many other types of securities. From time to time, one or more of the factors described above may create volatility in the markets for debt instruments and decrease the liquidity of the loan market.

Non-Investment Grade Securities Risk. Non-investment grade loans and bonds, and unrated loans and bonds of comparable credit quality are subject to the increased risk of a borrower's or issuer's inability to meet principal and interest payment obligations. These securities may be subject to greater price volatility due to such factors as specific corporate developments, interest rate sensitivity, negative perceptions of the non-investment grade securities markets generally, real or perceived adverse economic and competitive industry conditions and less secondary market liquidity. If the borrower of lower-rated loans or issuer of lower-rated bonds defaults, the Fund may incur additional expenses to seek recovery.

Reinvestment Risk. Proceeds from a current investment of the Fund, both interest payments and principal payments, may be reinvested in instruments that offer lower yields than the current investment due in part to market conditions and the interest rate environment at the time of reinvestment. Reinvestment risk is greater on short to intermediate-term loans.

Risks of Loan Assignments and Participations. As the purchaser of an assignment, the Fund typically succeeds to all the rights and obligations of the assigning institution and becomes a lender under the credit agreement with respect to the debt obligation; however, the Fund may not be able to unilaterally enforce all rights and remedies under the loan and with regard to any associated collateral. Because assignments may be arranged through private negotiations between potential assignees and potential assignors, the rights and obligations acquired by the Fund as the purchaser of an assignment may differ from, and be

17

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust II

April 30, 2011 (Unaudited)

more limited than, those held by the assigning lender. In addition, if the loan is foreclosed, the Fund could become part owner of any collateral and could bear the costs and liabilities of owning and disposing of the collateral. The Fund may be required to pass along to a purchaser that buys a loan from the Fund by way of assignment a portion of any fees to which the Fund is entitled under the loan. In connection with purchasing participations, the Fund generally will have no right to enforce compliance by the borrower with the terms of the loan agreement relating to the loan, nor any rights of set-off against the borrower, and the Fund may not directly benefit from any collateral supporting the loan in which it has purchased the participation. As a result, the Fund will be subject to the credit risk of both the borrower and the lender that is selling the participation. In the event of the insolvency of the lender selling a participation, the Fund may be treated as a general creditor of the lender and may not benefit from any set-off between the lender and the borrower.

Risks of Investing in Closed-End Funds. The shares of closed-end funds may trade at a discount or premium to, or at, their NAV. To the extent that the Fund invests a portion of its assets in closed-end funds, those assets will be subject to the risks of the closed-end fund's portfolio securities, and a shareholder in the Fund will bear not only his or her proportionate share of the expenses of the Fund, but also, indirectly, the expenses of the closed-end fund. The securities of closed-end funds in which the Fund may invest may be leveraged. As a result, the Fund may be indirectly exposed to leverage through an investment in such securities.

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

Non-Diversified Fund Risk. The 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.

Non-Correlation and Sampling Risks. The Fund's return may not match the return of its Underlying Index for a number of reasons. For example, the 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 the Fund and its Underlying Index may vary due to asset valuation differences and differences between the Fund's portfolio and its Underlying Index resulting from legal restrictions, cost or liquidity constraints. The Fund's use of a representative sampling approach will result in the Fund holding a smaller number of securities than are in its Underlying Index. As a result, an adverse development respecting an issuer of securities held by the Fund could result in a greater decline in net asset values 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.

C. Cash and Cash Equivalents

For the purposes of the Statement of Cash Flows, the Fund defines Cash and Cash Equivalents as cash (including foreign currency), money market funds and other investments held in lieu of cash and excludes investments made with cash collateral received.

18

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust II

April 30, 2011 (Unaudited)

D. Securities Purchased on a When-Issued and Delayed Delivery Basis

The Fund may purchase and sell interests in Corporate Loans and Corporate Debt Securities and other portfolio securities on a when-issued and delayed delivery basis, with payment and delivery scheduled for a future date. No income accrues to the Fund on such interests or securities in connection with such transactions prior to the date the Fund actually takes delivery of such interests or securities. These transactions are subject to market fluctuations and are subject to the risk that the value at delivery may be more or less than the trade date purchase price. Although the Fund will generally purchase these securities with the intention of acquiring such securities, they may sell such securities prior to the settlement date.

E. Federal Income Taxes

The 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 Fund 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 losses deferred due to wash sales and passive foreign investment company adjustments, if any.

The Fund files 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.

F. 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. Bond premiums and discounts are amortized and/or accreted for financial reporting purposes. 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.

G. Expenses

The Fund has agreed to pay an annual unitary management fee to Invesco PowerShares Capital Management LLC (the "Adviser"). The Adviser has agreed to pay substantially all expenses of the Fund, including the payments to the Sub-Adviser, set-up fees and commitment fees associated with the line of credit and the cost of transfer agency, custody, fund administration, legal, audit and other services, except for distribution fees, if any, brokerage expenses, taxes, interest (including interest expenses associated with the line of credit), litigation expenses, expenses of the underlying funds that are paid indirectly as a result of share ownership of the investment companies and other extraordinary expenses.

Expenses included in the accompanying financial statements reflect the expenses of the Fund and do not include any expenses of the investment companies in which it invests. The effects of the investment

19

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust II

April 30, 2011 (Unaudited)

companies' expenses are included in the realized and unrealized gain/loss on the investments in the investment companies.

H. Dividends and Distributions to Shareholders

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

I. Equalization

The Fund uses 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 Fund's investment adviser for the selection and ongoing monitoring of the Fund's investments, managing the Fund's business affairs and providing certain clerical, bookkeeping and other administrative services. As compensation for its services, the Fund has agreed to pay the Adviser an annual unitary management fee of 0.75% of the Fund's average daily net assets. The Adviser has agreed to waive 0.10% of its unitary management fee until April 20, 2012. The Adviser has agreed to pay substantially all expenses of the Fund, including payments to the Sub-Adviser, set-up fees and commitment fees associated with the line of credit and the cost of transfer agency, custody, fund administration, legal, audit and other services, except for distribution fees, if any, brokerage expenses, taxes, interest (including interest expenses associated with the line of credit), litigation expenses, expenses of the underlying funds that are paid indirectly as a result of share ownership of the investment companies and other extraordinary expenses.

The Adviser has entered into a sub-advisory agreement with Invesco Senior Secured Management Inc. (the "Sub-Adviser"), the primary sub-adviser to the Fund. The sub-advisory fee is paid by the Adviser to the Sub-Adviser at the annual rate of 40% of compensation paid to the Adviser.

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

The Adviser has entered into a licensing agreement for the Fund with Standard & Poor's (the "Licensor"). The Underlying Index name trademark is owned by the Licensor. This trademark has been licensed to the Adviser for use with the Fund. The Fund is not sponsored, endorsed, sold or promoted by the Licensor

20

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust II

April 30, 2011 (Unaudited)

and the Licensor makes no representation regarding the advisability of investing in the Fund. The Trust has entered into a sub-licensing agreement under which the Fund may track its respective Index.

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 the Fund.

Note 4. Additional Valuation Information

GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3) generally when market prices are not readily available or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment's assigned level:

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

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

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

The following is a summary of the tiered valuation input levels, as of April 30, 2011. 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.

During the period ended April 30, 2011, there were no significant transfers between investment levels.

	Investment in Securities
	Level 1		Level 2		Level 3		Total
Closed-End Funds	$	9,250,691	$	—	$	—	$	9,250,691
Corporate Debt Securities		—		107,664,321		—		107,664,321
Money Market Fund		16,942,874		—		—		16,942,874
Total Investments	$	26,193,565	$	107,664,321	$	—	$	133,857,886

21

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust II

April 30, 2011 (Unaudited)

Note 5. Tax Information

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from GAAP. Reclassifications are made to the Fund's capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Fund's fiscal year-end.

Note 6. Investment Transactions

The aggregate amount of investment securities purchased and sold by the Fund during the period ended April 30, 2011 was $202,453,611 and $85,644,481, respectively.

Unrealized Appreciation (Depreciation) of Investment Securities on a Tax Basis
Aggregate unrealized appreciation of investment securities	$	449,013
Aggregate unrealized (depreciation) of investment securities		(420,290	)
Net unrealized appreciation of investment securities	$	28,723
Cost of investments for tax and financial reporting purposes is $133,829,163.

Note 7. Unfunded Loan Commitments

As of April 30, 2011, the Fund had unfunded loan commitments of $27,667,661, which could be extended at the option of the borrower, pursuant to the following loan agreements with the following borrowers:

Borrower		Unfunded Commitments
Allison Transmission, Inc.	Term Loan B	$	500,507
AGFS Funding Co.	Term Loan NEW		1,002,410
Asurion Corp.	Term Loan B		498,610
Avaya, Inc.	Term Loan B3-EXT		489,637
Biomet, Inc.	Term Loan B		500,235
Cengage Learning Acquisitions, Inc.	Term Loan		723,281
Cequel Communications, LLC	Term Loan		997,430
Charter Communications Operating, LLC	Term Loan C-EXT		502,342
Claire's Stores Inc.	Term Loan B		711,735
Clear Channel Communications, Inc.	Term Loan B		891,880
CHS/Community Health Systems, Inc.	Term Loan EXT		492,415
CSC Holdings, Inc.	Term Loan B3		502,465
DaVita Inc.	Term Loan B-NEW		505,037
Dollar General Corp.	Term Loan B1		500,750
Federal-Mogul Corp.	Term Loan C-EXIT		330,145
Federal-Mogul Corp.	Term Loan B-EXIT		647,085
Fifth Third Processing Solutions, Inc.	Term Loan B		504,805
First Data Corp.	Term Loan B1-OLD		713,318
First Data Corp.	Term loan B2-OLD		833,307
First Data Corp.	Term Loan B3-OLD		1,428,083
Freescale Semiconductor, Inc.	Term Loan		750,941
Georgia-Pacific, LLC	Term Loan B1-OLD		500,698

22

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust II

April 30, 2011 (Unaudited)

Borrower		Unfunded Commitments
Getty Images, Inc.	Term Loan B	$	506,328
Goodman Global, Inc.	Term Loan B-NEW		504,930
Hawker Beechcraft Acquisition Co. LLC	Term Loan		18,005
Hawker Beechcraft Acquisition Co. LLC	Term Loan OLD		291,162
Health Management Associates, Inc.	Term Loan B		740,681
Hertz Corp.(The)	Term Loan		1,010,110
Insight Midwest Holdings, LLC	Term Loan B		594,810
Intelsat Jackson Holdings S.A.	Term Loan B-NEW		505,508
Las Vegas Sands, LLC	Term Loan I-DD-EXT		123,709
Las Vegas Sands, LLC	Term Loan B-EXT		1,107,084
Level 3 Financing, Inc	Term Loan A-OLD		493,508
Pinafore, LLC	Term Loan B-NEW		505,265
RH Donnelley, Inc.	Term Loan D3-EXIT		237,084
Realogy Corp.	Term Loan NONEXT		40,453
Realogy Corp.	Term Loan B-EXT		431,352
Royalty Pharma AG	Term Loan B		750,941
Sabre, Inc.	Term Loan		454,583
ServiceMaster Co.(The)	Term Loan DD		66,967
ServiceMaster Co.(The)	Term Loan B		672,462
SunGard Data Systems Inc.	Term Loan A-NONEXT		493,250
SuperMedia Inc.	Term Loan B-EXIT		438,155
Telesat Canada	Term Loan I(Canada)		460,939
Telesat Canada	Term Loan II-DD		39,593
Texas Competitive Electric Holdings Co. LLC	Term Loan B1		258,539
Texas Competitive Electric Holdings Co. LLC	Term loan B2		648,023
Univision Communications Inc.	Term Loan EXT		490,025
Visant Corp.	Term Loan		503,333
Windstream Corp.	Term Loan B2-EXT		753,746
		$	27,667,661

Note 8. Trustees' Fees

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

The Trust has adopted a deferred compensation plan (the "Plan"). Under the Plan, an Independent Trustee who has executed a Deferred Fee Agreement (a "Participating Trustee") may defer receipt of all or a portion of his compensation ("Deferral Fees"). Such Deferral Fees are deemed to be invested in select PowerShares Funds. The Deferral Fees payable to the Participating Trustee are valued as of the date such 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.

23

Notes to Financial Statements (Continued)

PowerShares Exchange-Traded Fund Trust II

April 30, 2011 (Unaudited)

Note 9. Capital

Shares are created and redeemed by the Trust only in Creation Unit size aggregations of 100,000 Shares. Only Authorized Participants are permitted to purchase or redeem Creation Units from the Fund. Unlike most exchange-traded funds ("ETFs"), the Fund currently effects creations and redemptions principally for cash, rather than primarily in-kind because of the nature of the Fund's investments. As such, investments in Shares may be less tax efficient than investments in conventional ETFs.

The Fund charges fixed and variable transaction fees for creations and redemptions which are treated as increases in capital.

Note 10. 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.

24

Board Considerations Regarding Approval of Investment Advisory and Sub-Advisory Agreements

At a meeting held on January 18, 2011, the Board of Trustees of the PowerShares Exchange-Traded Fund Trust II (the "Trust"), including the Independent Trustees, approved for the PowerShares Senior Loan Portfolio (the "Fund") the Investment Advisory Agreement between the Trust and Invesco PowerShares Capital Management LLC (the "Adviser") and the Investment Sub-Advisory Agreement (the "Sub-Advisory Agreement") between the Adviser and the following eight affiliated sub-advisers (each, a "Sub-Adviser" and collectively, the "Sub-Advisers"): Invesco Advisers, Inc.; Invesco Asset Management Deutschland, GmbH; Invesco Asset Management Ltd.; Invesco Asset Management (Japan) Limited; Invesco Australia Limited; Invesco Hong Kong Limited; Invesco Senior Secured Management, Inc. ("ISSM"); and Invesco Trimark Ltd.

The Trustees considered that the Sub-Advisers serve as sub-advisers for other exchange-traded funds ("ETFs") managed by the Adviser, and that as part of their annual contract renewal process, they had renewed the investment sub-advisory agreement for those funds following a multi-month review process that concluded at their April 2010 meeting. The Trustees also considered that the Trust's Chief Compliance Officer had represented that the information provided with respect to the Sub-Advisers, and particularly with respect to ISSM, whose portfolio managers would be primarily responsible for day-to-day management of the Fund's portfolio, in connection with that contract renewal meeting had not changed materially.

In approving the Investment Advisory and Sub-Advisory Agreements, the Trustees considered: (i) the nature, extent and quality of services to be provided, (ii) the cost of services to be provided, (iii) the extent to which economies of scale may be realized as the Fund grows, (iv) whether the fee level reflects any possible economies of scale for the benefit of Fund shareholders, (v) comparisons of services rendered and amounts paid to other registered investment companies and (vi) any benefits to be realized by the Adviser and the Sub-Advisers from their relationship with the Fund. Based on all of the information considered and the conclusions reached, the Board, including the Independent Trustees, determined to approve the Investment Advisory and Sub-Advisory Agreement for the Fund. No single factor was determinative in the Board's analysis.

Nature, Extent and Quality of Services. The Trustees considered the nature, extent and quality of services to be provided under the Investment Advisory and Sub-Advisory Agreement. In evaluating the nature, extent and quality of the Adviser's services, the Trustees reviewed information concerning the functions to be performed by the Adviser for the Fund, information describing the Adviser's current organization and staffing, including operations assistance provided by the Adviser's parent organization, Invesco Ltd., and considered the quality of services provided by the Adviser to other ETFs. The Trustees also reviewed reports on the correlation and tracking error between the underlying indexes and the performance of other ETFs for which the Adviser serves as investment adviser.

The Trustees also considered the services to be provided by the Adviser in its oversight of the Fund's administrator, custodian, transfer agent and the Sub-Advisers. They noted the significant amount of time and effort that had been devoted to this oversight function for the other ETFs and that was expected to be provided for the Fund. The Trustees noted that the Adviser is responsible for overseeing the Fund's operations and management, including trade execution.

The Board considered the benefits described by the Adviser in having multiple affiliated Sub-Advisers. The Board noted that the Sub-Advisory Agreement will provide flexibility to access a broad talent base of portfolio managers and facilitate Invesco's global trading desk strategy. The Board reviewed the

25

Board Considerations Regarding Approval of Investment Advisory and Sub-Advisory Agreements (Continued)

qualifications and background of ISSM's portfolio managers and noted the qualifications and background of the other Sub-Advisers and the resources made available to the Sub-Advisers' personnel.

Based on their review, the Trustees concluded that the nature and extent of services to be provided under the Advisory and Sub-Advisory Agreements were expected to be appropriate and reasonable.

Fees, Expenses and Profitability. The Trustees reviewed and discussed the information provided by the Adviser and the Sub-Advisers on the proposed advisory fee and on the sub-advisory fee rate under the Sub-Advisory Agreement. The Trustees noted the Adviser's statement that the Fund would be the first ETF investing in bank loans and the comparison of the proposed advisory fee to the expense ratios of a comparable peer group of funds investing in bank loans or other leveraged or floating-rate loans. The Trustees noted the information compiled by the Adviser from Lipper Inc. databases on the expense ratios and advisory fees of various types of ETFs and open-end funds, including index funds, that they had received in connection with the 2010 contract renewal process for other ETFs for which the Adviser serves as investment adviser. The Trustees noted that the annual advisory fee to be charged to the Fund was a unitary fee, and that the Adviser has agreed to pay all other expenses of the Fund, including the set-up and commitment fees associated with the Fund's line of credit, except brokerage commissions and other trading expenses, taxes, interest, including interest on the line of credit, and extraordinary expenses. The Trustees also considered that the Adviser has agreed to waive 0.10% of the unitary management fee until April 20, 2012. The Trustees noted that the Fund's unitary advisory fee was within an acceptable range of the expense ratios of the comparable peer group funds. The Trustees considered the proposed advisory fee in light of the distinguishing factors of the Fund and the higher administrative, operational and management oversight costs for the Adviser. The Trustees noted that the Fund's licensing fee, the sub-advisory fee and interest payable for use of the line of credit are payable out of the unitary fee to be charged to the Fund. The Board concluded that the unitary advisory fee to be charged to the Fund is reasonable and appropriate in light of the services expected to be provided.

In conjunction with their review of the unitary advisory fee, the Trustees also considered information provided by the Adviser on the costs of services for the Fund and fees to be paid by the Adviser. The Trustees considered information previously provided by the Adviser on its profitability, as well as any profits or losses realized by the Adviser from its relationship with other ETFs for which it serves as investment adviser. The Trustees noted the Adviser's statement that its costs of managing those ETFs generally exceed the amount payable as management fees under the investment advisory agreement for those funds. The Trustees concluded that the estimated profit to be realized by the Adviser with respect to the Fund appeared to be reasonable in comparison with the costs of providing investment advisory services to the Fund.

The Trustees noted that the sub-advisory fee to be paid to each Sub-Adviser is consistent with the compensation structure used throughout Invesco when Invesco's affiliates provide sub-advisory services to other Invesco affiliates and reasonable in comparison to fees charged to other clients. The Board considered how the sub-advisory fee relates to the overall advisory fees for the Fund and noted that the Adviser compensates the Sub-Advisers from its fee.

The Trustees noted that the Sub-Advisers did not provide an estimate of their profitability in connection with the management of the Fund, but that ISSM anticipates the Fund will be operated at a loss for the first 6 to 12 months of operation. The Board concluded that the estimated profit to be realized by ISSM appeared to be reasonable in comparison with the costs of providing sub-advisory services to the Fund.

26

Board Considerations Regarding Approval of Investment Advisory and Sub-Advisory Agreements (Continued)

Economies of Scale and Whether Fee Levels Reflect These Economies of Scale. The Trustees reviewed the information provided by the Adviser as to the extent to which economies of scale are realized as the Fund grows and whether fee levels reflect economies of scale for the benefit of shareholders. The Trustees noted that any reduction in fixed costs associated with the management of the Fund would be enjoyed by the Adviser, but a unitary fee provides certainty in expenses for the Fund. The Trustees considered whether the sub-advisory fee rate for the Fund is reasonable in relation to the projected asset size of the Fund, and concluded that the flat advisory and sub-advisory fees were reasonable and appropriate.

The Trustees noted that the Adviser and the Sub-Advisers had not identified any further benefits that they will derive from their relationship with the Fund, and that there were no soft dollar arrangements.

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

27

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PROXY VOTING POLICIES AND PROCEDURES

A description of the Fund's proxy voting policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available, without charge and upon request, by calling (800) 983-0903. This information is also available on the Securities and Exchange Commission's ("Commission") website at www.sec.gov.

Information regarding how the Fund voted proxies for portfolio securities, if applicable, during the most recent 12-month period ended June 30, is also available, without charge and upon request, by (i) calling (800) 983-0903; or (ii) accessing the Trust's Form N-PX on the Commission's website at www.sec.gov.

QUARTERLY PORTFOLIOS

The Fund files its complete schedule of portfolio holdings with the Commission for the first and third quarters of each fiscal year on Form N-Q. The Trust's Form N-Qs are available on the Commission's website at www.sec.gov. The Trust's 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

© 2011 Invesco PowerShares Capital Management LLC  P-BKLN-SAR-1

Item 2. Code of Ethics.

Not required for a semi-annual period.

Item 3. Audit Committee Financial Expert.

Not required for a semi-annual period.

Item 4. Principal Accountant Fees and Services.

Not required for a semi-annual period.

Item 5. Audit Committee of Listed Registrants.

Not required for a semi-annual period.

Item 6. Schedule of Investments.

The Schedules of Investments are included as a part of the report to shareholders filed under Item 1 of this Form N-CSR.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

Not applicable.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable.

Item 10. Submission of Matters to a Vote of Security Holders.

There have been no changes to the procedures by which shareholders may recommend nominees to the Registrant’s Board of Trustees that would require disclosure herein.

Item 11. Controls and Procedures.

a)Based on their evaluation of the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) as of a date within 90 days of the filing date of this report, the Registrant’s President (principal executive officer) and Treasurer (principal financial officer) have concluded that such disclosure controls and procedures are effective.

b)There were no significant changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

Item 12. Exhibits.

(a)(1) Code of Ethics

Not required for a semi-annual report.

(a)(2) Certifications of the Registrant’s President and Treasurer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 are attached as Exhibit 99.CERT.

(a)(3) Not Applicable.

(b) Certifications of the Registrant’s President and Treasurer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 are attached as Exhibit 99.906CERT.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant)  PowerShares Exchange-Traded Fund Trust II

By:	/s/ Andrew Schlossberg
Name:	Andrew Schlossberg
Title:	President
Date:	June 30, 2011

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

By:	/s/ Andrew Schlossberg
Name:	Andrew Schlossberg
Title:	President
Date:	June 30, 2011
By:	/s/ Bruce T. Duncan
Name:	Bruce T. Duncan
Title:	Treasurer
Date:	June 30, 2011