UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-21265

PowerShares Exchange-Traded Fund Trust

(Exact name of registrant as specified in charter)

3500 Lacey Road

Downers Grove, IL 60515

(Address of principal executive offices) (Zip code)

Andrew Schlossberg

President

3500 Lacey Road

Downers Grove, IL 60515

(Name and address of agent for service)

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

Date of fiscal year end: April 30

Date of reporting period: October 31, 2013

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:

October 31, 2013

2013 Semi-Annual Report to Shareholders

PIQ	PowerShares Dynamic MagniQuant Portfolio
PWC	PowerShares Dynamic Market Portfolio
PWO	PowerShares Dynamic OTC Portfolio
PRF	PowerShares FTSE RAFI US 1000 Portfolio
PRFZ	PowerShares FTSE RAFI US 1500 Small-Mid Portfolio

Table of Contents

Fees and Expenses	3
Broad Market Portfolios
Schedules of Investments
PowerShares Dynamic MagniQuant Portfolio (PIQ)	4
PowerShares Dynamic Market Portfolio (PWC)	7
PowerShares Dynamic OTC Portfolio (PWO)	9
PowerShares FTSE RAFI US 1000 Portfolio (PRF)	11
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ)	22
Statements of Assets and Liabilities	37
Statements of Operations	38
Statements of Changes in Net Assets	40
Financial Highlights	42
Notes to Financial Statements	45

2

Fees and Expenses

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

The example is based on an investment of $1,000 invested at the beginning of the period and held through the six-month period ended October 31, 2013.

In pursuing its investment objective, PowerShares Dynamic OTC 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 tables provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading “Expenses Paid During the Six-Month Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

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

Please note that the expenses shown in the tables are meant to highlight your ongoing costs only, and do not reflect any transactional costs, such as sales charges and brokerage commissions. Therefore, the second line in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, expenses shown in the table do not include the expenses of the underlying funds, which are borne indirectly by a Fund. If transaction costs and indirect expenses were included, your costs would have been higher.

	Beginning Account Value May 1, 2013		Ending Account Value October 31, 2013		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During the Six-Month Period(1)
PowerShares Dynamic MagniQuant Portfolio (PIQ)
Actual	$	1,000.00	$	1,149.70		0.64	%	$	3.47
Hypothetical (5% return before expenses)		1,000.00		1,021.98		0.64			3.26
Powershares Dynamic Market Portfolio (PWC)
Actual		1,000.00		1,147.09		0.60			3.25
Hypothetical (5% return before expenses)		1,000.00		1,022.18		0.60			3.06
Powershares Dynamic OTC Portfolio (PWO)
Actual		1,000.00		1,162.29		0.59			3.22
Hypothetical (5% return before expenses)		1,000.00		1,022.23		0.59			3.01
PowerShares FTSE RAFI US 1000 Portfolio (PRF)
Actual		1,000.00		1,114.73		0.39			2.08
Hypothetical (5% return before expenses)		1,000.00		1,023.24		0.39			1.99
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ)
Actual		1,000.00		1,190.66		0.39			2.15
Hypothetical (5% return before expenses)		1,000.00		1,023.24		0.39			1.99

⁽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 October 31, 2013. Expenses are calculated by multiplying the Fund’s annualized expense ratio by the average account value for the period; then multiplying the result by 184/365.

3

Portfolio Composition

PowerShares Dynamic MagniQuant Portfolio (PIQ)

Sector Breakdown (% of the Fund’s Net Assets) as of October 31, 2013 (Unaudited)
Financials	28.0
Consumer Discretionary	16.7
Information Technology	15.3
Industrials	14.6
Energy	8.6
Health Care	6.4
Consumer Staples	4.9
Materials	4.0
Telecommunication Services	1.0
Utilities	0.5
Money Market Fund Plus Other Assets Less Liabilities	0.0

Schedule of Investments^(a)

PowerShares Dynamic MagniQuant Portfolio (PIQ)

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—16.7%
	2,245	AFC Enterprises, Inc.(b)	$	100,082
	4,926	Apollo Group, Inc., Class A(b)		131,475
	2,531	Best Buy Co., Inc.		108,327
	2,251	CEC Entertainment, Inc.		104,334
	1,713	Children’s Place Retail Stores, Inc. (The)(b)		93,513
	1,444	Core-Mark Holding Co., Inc.		102,134
	4,367	Dana Holding Corp.		85,593
	1,656	Delphi Automotive PLC (United Kingdom)		94,723
	1,483	Domino’s Pizza, Inc.		99,450
	5,648	Ford Motor Co.		96,637
	5,037	Fox Factory Holding Corp.(b)		87,745
	2,673	General Motors Co.(b)		98,767
	4,548	Goodyear Tire & Rubber Co. (The)		95,417
	1,532	Hanesbrands, Inc.		104,360
	3,783	Haverty Furniture Cos., Inc.		105,205
	5,051	hhgregg, Inc.(b)		78,341
	1,223	Home Depot, Inc. (The)		95,259
	4,843	International Game Technology		91,048
	3,162	ITT Educational Services, Inc.(b)		126,859
	2,307	Jack in the Box, Inc.(b)		93,849
	1,325	Lear Corp.		102,542
	1,388	Lithia Motors, Inc., Class A		87,236
	5,424	Live Nation Entertainment, Inc.(b)		105,443
	1,988	Lowe’s Cos., Inc.		98,963
	1,466	Outerwall, Inc.(b)		95,261
	1,411	Red Robin Gourmet Burgers, Inc.(b)		107,490
	4,683	Remy International, Inc.(b)		103,167
	8,348	Smith & Wesson Holding Corp.(b)		89,991
	7,519	Stein Mart, Inc.		111,056

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Discretionary (continued)
	1,743	Sturm Ruger & Co., Inc.	$	114,010
	1,319	TRW Automotive Holdings Corp.(b)		99,070
	1,272	Visteon Corp.(b)		98,058
	160	Washington Post Co. (The), Class B		102,931
				3,308,336
		Consumer Staples—4.9%
	1,393	Andersons, Inc. (The)		103,333
	1,493	Herbalife Ltd. (Cayman Islands)		96,776
	3,666	Ingles Markets, Inc., Class A		94,620
	2,489	Kroger Co. (The)		106,629
	5,963	Pilgrim’s Pride Corp. (Brazil)(b)		84,496
	2,806	Prestige Brands Holdings, Inc.(b)		87,631
	26,407	Rite Aid Corp.(b)		140,749
	1,391	Sanderson Farms, Inc.		87,925
	12,747	SUPERVALU, Inc.		89,611
	3,147	Tyson Foods, Inc., Class A		87,078
				978,848
		Energy—8.6%
	1,503	Alliance Holdings GP LP		89,639
	1,230	Alliance Resource Partners LP		93,369
	7,356	Alon USA Energy, Inc. (Israel)		88,860
	5,772	Alon USA Partners LP (Israel)		78,615
	1,006	Anadarko Petroleum Corp.		95,862
	2,328	Cabot Oil & Gas Corp.		82,225
	1,374	ConocoPhillips		100,714
	3,347	CVR Refining LP		81,466
	580	EOG Resources, Inc.		103,472
	2,692	EPL Oil & Gas, Inc.(b)		85,821

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

4

PowerShares Dynamic MagniQuant Portfolio (PIQ) (continued)

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Energy (continued)
	3,322	Exterran Holdings, Inc.(b)	$	94,843
	1,445	Helmerich & Payne, Inc.		112,060
	1,217	Hess Corp.		98,820
	1,256	Marathon Petroleum Corp.		90,005
	1,566	Murphy Oil Corp.		94,461
	3,325	Stone Energy Corp.(b)		115,910
	2,564	Valero Energy Corp.		105,560
	3,106	Western Refining, Inc.		100,231
				1,711,933
		Financials—28.0%
	538	Affiliated Managers Group, Inc.(b)		106,223
	1,581	Aflac, Inc.		102,733
	1,921	Allstate Corp. (The)		101,928
	4,619	American Equity Investment Life Holding Co.		96,260
	1,788	American Financial Group, Inc.		100,593
	1,981	American International Group, Inc.		102,319
	888	American National Insurance Co.		89,750
	1,067	Ameriprise Financial, Inc.		107,276
	2,571	AmTrust Financial Services, Inc.		98,624
	3,608	Apollo Global Management LLC, Class A		116,394
	1,729	Arch Capital Group Ltd.(b)		100,213
	2,231	Argo Group International Holdings Ltd.		93,657
	1,900	Artisan Partners Asset Management, Inc., Class A		113,753
	2,561	Aspen Insurance Holdings Ltd.		99,905
	1,718	Assurant, Inc.		100,469
	2,119	Axis Capital Holdings Ltd.		100,483
	6,473	Bank of America Corp.		90,363
	819	Berkshire Hathaway, Inc., Class B(b)		94,251
	1,885	Citigroup, Inc.		91,950
	2,597	CNA Financial Corp.		105,412
	6,724	CNO Financial Group, Inc.		104,760
	3,437	Employers Holdings, Inc.		103,351
	665	Everest Re Group Ltd.		102,237
	2,165	FBL Financial Group, Inc., Class A		96,862
	1,709	Financial Engines, Inc.		95,482
	4,028	First Interstate BancSystem, Inc.		101,143
	12,677	Fortress Investment Group LLC, Class A		104,585
	4,818	FXCM, Inc., Class A		78,967
	3,988	Green Dot Corp., Class A(b)		85,583
	1,710	Hanover Insurance Group, Inc. (The)		100,103
	2,159	HCC Insurance Holdings, Inc.		98,558
	3,476	Horace Mann Educators Corp.		96,285
	5,379	Investment Technology Group, Inc.(b)		86,172
	1,803	JPMorgan Chase & Co.		92,927
	7,827	KeyCorp		98,072
	2,802	Legg Mason, Inc.		107,793
	2,167	Lincoln National Corp.		98,403
	1,973	MetLife, Inc.		93,343
	1,665	Navigators Group, Inc. (The)(b)		93,640
	6,436	Old Republic International Corp.		108,060
	1,045	PartnerRe Ltd.		104,719
	2,224	Principal Financial Group, Inc.		105,551
	3,654	Progressive Corp. (The)		94,894
	2,180	Protective Life Corp.		100,454
	1,224	Prudential Financial, Inc.		99,621

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	2,178	Raymond James Financial, Inc.	$	99,426
	1,042	RenaissanceRe Holdings Ltd.		97,646
	3,993	Selective Insurance Group, Inc.		104,896
	1,741	StanCorp Financial Group, Inc.		102,545
	1,371	State Street Corp.		96,066
	2,978	Stewart Information Services Corp.		93,271
	5,296	Symetra Financial Corp.		99,194
	6,269	United Community Banks, Inc.(b)		97,734
	3,176	United Fire Group, Inc.		100,679
	3,085	Unum Group		97,918
	3,082	XL Group PLC		94,217
				5,547,713
		Health Care—6.4%
	1,457	Aetna, Inc.		91,354
	1,605	AmerisourceBergen Corp.		104,855
	1,812	Cardinal Health, Inc.		106,292
	1,158	Cigna Corp.		89,143
	989	Humana, Inc.		91,136
	1,621	Magellan Health Services, Inc.(b)		95,153
	750	McKesson Corp.		117,255
	1,676	Omnicare, Inc.		92,431
	11,515	PDL BioPharma, Inc.		93,156
	2,106	Quintiles Transnational Holdings, Inc.(b)		88,431
	4,066	Santarus, Inc.(b)		94,860
	1,070	WellPoint, Inc.		90,736
	2,464	West Pharmaceutical Services, Inc.		119,134
				1,273,936
		Industrials—14.6%
	3,927	AAON, Inc.		106,068
	2,307	ADT Corp. (The)		100,055
	1,631	AGCO Corp.		95,218
	1,629	Alaska Air Group, Inc.		115,105
	952	Alliant Techsystems, Inc.		103,644
	572	AMERCO		115,504
	889	Boeing Co. (The)		116,015
	6,054	Comfort Systems USA, Inc.		112,786
	1,703	Consolidated Graphics, Inc.(b)		109,145
	4,635	Delta Air Lines, Inc.		122,271
	1,071	Dover Corp.		98,307
	7,827	Federal Signal Corp.(b)		107,152
	1,439	Huntington Ingalls Industries, Inc.		102,960
	1,214	Hyster-Yale Materials Handling, Inc.		95,226
	1,540	IDEX Corp.		106,491
	2,856	Insperity, Inc.		110,442
	2,786	ITT Corp.		110,688
	1,019	L-3 Communications Holdings, Inc.		102,359
	1,405	Manpowergroup, Inc.		109,731
	2,098	Old Dominion Freight Line, Inc.(b)		98,396
	2,028	Oshkosh Corp.(b)		96,513
	1,703	PACCAR, Inc.		94,687
	2,907	Quad/Graphics, Inc.		101,512
	7,132	Southwest Airlines Co.		122,813
	5,093	Swift Transportation Co.(b)		110,976
	5,658	US Airways Group, Inc.(b)		124,306
	1,168	WABCO Holdings, Inc.(b)		100,074
				2,888,444

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

5

PowerShares Dynamic MagniQuant Portfolio (PIQ) (continued)

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology—15.3%
	2,787	AOL, Inc.	$	101,001
	1,963	Arrow Electronics, Inc.(b)		94,263
	2,363	Avnet, Inc.(b)		93,811
	4,167	Benchmark Electronics, Inc.(b)		94,716
	1,817	Computer Sciences Corp.		89,505
	5,188	Convergys Corp.		102,411
	3,745	Cray, Inc.(b)		83,738
	2,263	EchoStar Corp., Class A(b)		108,534
	3,112	Electronics for Imaging, Inc.(b)		106,773
	2,652	Euronet Worldwide, Inc.(b)		115,097
	895	FleetCor Technologies, Inc.(b)		103,238
	10,166	Flextronics International Ltd. (Singapore)(b)		80,210
	12,927	Harmonic, Inc.(b)		94,496
	4,098	Hewlett-Packard Co.		99,868
	4,143	Ingram Micro, Inc., Class A(b)		95,993
	2,564	InterDigital, Inc.		99,355
	4,013	Jabil Circuit, Inc.		83,711
	1,826	Jack Henry & Associates, Inc.		99,718
	8,258	Kulicke & Soffa Industries, Inc. (Singapore)(b)		106,528
	1,952	Lam Research Corp.(b)		105,857
	2,667	Lexmark International, Inc., Class A		94,812
	4,475	Magnachip Semiconductor Corp. (South Korea)(b)		83,638
	150	MasterCard, Inc., Class A		107,565
	5,620	Sanmina Corp.(b)		81,827
	2,174	Stamps.com, Inc.(b)		98,787
	2,373	Synaptics, Inc.(b)		110,345
	3,743	TeleTech Holdings, Inc.(b)		99,077
	2,599	Ubiquiti Networks, Inc.(b)		100,269
	8,198	United Online, Inc.(b)		99,934
	7,458	Vishay Intertechnology, Inc.(b)		91,510
	1,469	Western Digital Corp.		102,286
				3,028,873
		Materials—4.0%
	1,054	Ashland, Inc.		97,548
	3,964	Boise Cascade Co.(b)		101,518
	5,665	FutureFuel Corp.		98,628
	3,206	OM Group, Inc.(b)		109,004
	1,721	Packaging Corp. of America		107,184
	820	Rock-Tenn Co., Class A		87,748
	3,208	Sealed Air Corp.		96,817
	426	Terra Nitrogen Co. LP		87,044
				785,491
		Telecommunication Services—1.0%
	3,290	Telephone & Data Systems, Inc.		102,582
	2,130	United States Cellular Corp.		103,092
				205,674
		Utilities—0.5%
	3,412	MDU Resources Group, Inc.		101,609
		Total Common Stocks and Other Equity Interests (Cost $17,677,240)		19,830,857

Number of Shares			Value
		Money Market Fund—0.4%
	74,628	Premier Portfolio—Institutional Class(c) (Cost $74,628)	$	74,628
		Total Investments (Cost $17,751,868)—100.4%		19,905,485
		Other assets less liabilities—(0.4)%		(73,946	)
		Net Assets—100.0%	$	19,831,539

Notes to Schedule of Investments:

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

^(b)  Non-income producing security.

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

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

6

Portfolio Composition

PowerShares Dynamic Market Portfolio (PWC)

Sector Breakdown (% of the Fund’s Net Assets) as of October 31, 2013 (Unaudited)
Information Technology	18.0
Financials	14.6
Consumer Discretionary	13.5
Industrials	12.2
Health Care	12.0
Energy	11.3
Consumer Staples	9.2
Materials	4.1
Utilities	2.9
Telecommunication Services	2.2
Money Market Fund Plus Other Assets Less Liabilities	0.0

Schedule of Investments^(a)

PowerShares Dynamic Market Portfolio (PWC)

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—13.5%
	34,797	Bridgepoint Education, Inc.(b)	$	682,021
	10,577	Capella Education Co.(b)		644,351
	74,582	DISH Network Corp., Class A		3,594,852
	207,117	Ford Motor Co.		3,543,772
	31,655	Fox Factory Holding Corp.(b)		551,430
	11,448	GameStop Corp., Class A		627,579
	28,571	Goodyear Tire & Rubber Co. (The)		599,420
	9,665	Hanesbrands, Inc.		658,380
	31,742	hhgregg, Inc.(b)		492,318
	8,361	Lear Corp.		647,058
	8,862	Red Robin Gourmet Burgers, Inc.(b)		675,107
	45,604	Scripps Networks Interactive, Inc., Class A		3,671,122
	55,398	Time Warner, Inc.		3,808,059
	8,323	TRW Automotive Holdings Corp.(b)		625,141
				20,820,610
		Consumer Staples—9.2%
	10,043	Andersons, Inc. (The)		744,990
	131,097	Archer-Daniels-Midland Co.		5,361,867
	41,261	Costco Wholesale Corp.		4,868,798
	7,640	Green Mountain Coffee Roasters, Inc.(b)		479,868
	24,818	Inter Parfums, Inc.		872,601
	43,015	Pilgrim’s Pride Corp. (Brazil)(b)		609,522
	10,070	Sanderson Farms, Inc.		636,525
	22,777	Tyson Foods, Inc., Class A		630,240
				14,204,411
		Energy—11.3%
	94,458	Alon USA Energy, Inc. (Israel)		1,141,053

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Energy (continued)
	18,609	Helmerich & Payne, Inc.	$	1,443,128
	73,143	Hess Corp.		5,939,212
	26,376	HollyFrontier Corp.		1,214,878
	154,090	Valero Energy Corp.		6,343,885
	39,999	Western Refining, Inc.		1,290,768
				17,372,924
		Financials—14.6%
	41,735	Aflac, Inc.		2,711,940
	26,089	American Equity Investment Life Holding Co.		543,695
	10,029	American Financial Group, Inc.		564,231
	51,912	American International Group, Inc.(b)		2,681,255
	19,496	Employers Holdings, Inc.		586,245
	12,282	FBL Financial Group, Inc., Class A		549,497
	22,737	First Interstate BancSystem, Inc.		570,926
	71,681	Fortress Investment Group LLC, Class A		591,368
	47,731	JPMorgan Chase & Co.		2,460,056
	57,370	Lincoln National Corp.		2,605,172
	52,215	MetLife, Inc.		2,470,292
	58,940	Principal Financial Group, Inc.		2,797,292
	12,367	Protective Life Corp.		569,871
	9,878	StanCorp Financial Group, Inc.		581,814
	16,895	Stewart Information Services Corp.		529,151
	29,926	Symetra Financial Corp.		560,514
	35,447	United Community Banks, Inc.(b)		552,619
	18,014	United Fire Group, Inc.		571,044
				22,496,982

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

7

PowerShares Dynamic Market Portfolio (PWC) (continued)

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Health Care—12.0%
	27,618	Amedisys, Inc.(b)	$	449,621
	50,716	AmerisourceBergen Corp.		3,313,276
	12,065	AmSurg Corp.(b)		517,468
	272,852	Boston Scientific Corp.(b)		3,189,640
	20,622	Celgene Corp.(b)		3,062,161
	7,872	Centene Corp.(b)		442,092
	6,460	Chemed Corp.		438,117
	22,075	Impax Laboratories, Inc.(b)		447,239
	8,004	Magellan Health Services, Inc.(b)		469,835
	23,777	McKesson Corp.		3,717,296
	2,958	MWI Veterinary Supply, Inc.(b)		469,257
	8,275	Omnicare, Inc.		456,366
	56,662	PDL BioPharma, Inc.		458,396
	19,977	Santarus, Inc.(b)		466,063
	12,169	West Pharmaceutical Services, Inc.		588,371
				18,485,198
		Industrials—12.2%
	10,084	AGCO Corp.		588,704
	5,894	Alliant Techsystems, Inc.		641,680
	10,660	Consolidated Graphics, Inc.(b)		683,200
	179,864	Delta Air Lines, Inc.		4,744,812
	38,772	Exelis, Inc.		639,350
	39,287	L-3 Communications Holdings, Inc.		3,946,379
	51,059	Republic Airways Holdings, Inc.(b)		601,475
	36,350	RPX Corp.(b)		649,211
	44,246	SkyWest, Inc.		665,460
	277,028	Southwest Airlines Co.		4,770,422
	35,293	US Airways Group, Inc.(b)		775,387
				18,706,080
		Information Technology—18.0%
	31,695	Benchmark Electronics, Inc.(b)		720,427
	71,276	Computer Sciences Corp.		3,511,056
	23,782	Electronics for Imaging, Inc.(b)		815,961
	20,272	Euronet Worldwide, Inc.(b)		879,805
	77,543	Flextronics International Ltd. (Singapore)(b)		611,814
	98,491	Harmonic, Inc.(b)		719,969
	160,005	Hewlett-Packard Co.		3,899,322
	31,508	Ingram Micro, Inc., Class A(b)		730,040
	19,593	InterDigital, Inc.		759,229
	62,959	Kulicke & Soffa Industries, Inc. (Singapore)(b)		812,171
	20,384	Lexmark International, Inc., Class A		724,651
	5,898	MasterCard, Inc., Class A		4,229,456
	42,798	Sanmina Corp.(b)		623,139
	32,403	SunPower Corp. (France)(b)		978,247
	72,949	TE Connectivity Ltd. (Switzerland)		3,756,144
	57,653	Western Digital Corp.(b)		4,014,378
				27,785,809
		Materials—4.1%
	20,070	CF Industries Holdings, Inc.		4,327,092
	33,814	FutureFuel Corp.		588,702
	23,443	Hi-Crush Partners LP(b)		711,026
	23,707	Suncoke Energy Partners LP(b)		618,278
				6,245,098

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Telecommunication Services—2.2%
	162,313	Sprint Corp. (Japan)(b)	$	1,092,366
	11,238	Telephone & Data Systems, Inc.		350,401
	7,273	United States Cellular Corp.		352,013
	22,986	Verizon Communications, Inc.		1,161,023
	99,735	Vonage Holdings Corp.(b)		372,012
				3,327,815
		Utilities—2.9%
	13,148	Black Hills Corp.		666,867
	32,496	Dynegy, Inc., Class A(b)		631,397
	64,207	Edison International		3,148,069
				4,446,333
		Total Common Stocks and Other Equity Interests (Cost $138,733,929)		153,891,260
		Money Market Fund—0.1%
	136,983	Premier Portfolio—Institutional Class(c) (Cost $136,983)		136,983
		Total Investments (Cost $138,870,912)—100.1%		154,028,243
		Other assets less liabilities—(0.1)%		(105,207	)
		Net Assets—100.0%	$	153,923,036

Notes to Schedule of Investments:

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

^(b)  Non-income producing security.

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

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

8

Portfolio Composition

PowerShares Dynamic OTC Portfolio (PWO)

Sector Breakdown (% of the Fund’s Net Assets) as of October 31, 2013 (Unaudited)
Information Technology	48.5
Consumer Discretionary	20.4
Health Care	14.7
Financials	6.4
Industrials	4.6
Consumer Staples	3.1
Energy	1.0
Materials	0.6
Telecommunication Services	0.6
Money Market Fund Plus Other Assets Less Liabilities	0.1

Schedule of Investments^(a)

PowerShares Dynamic OTC Portfolio (PWO)

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—99.9%
		Consumer Discretionary—20.4%
	4,392	AFC Enterprises, Inc.(b)	$	195,796
	9,684	Apollo Group, Inc., Class A(b)		258,466
	3,309	Capella Education Co.(b)		201,584
	19,891	Comcast Corp., Class A		946,414
	18,621	DISH Network Corp., Class A		897,532
	9,903	Fox Factory Holding Corp.(b)		172,510
	8,938	Goodyear Tire & Rubber Co. (The)(b)		187,519
	4,554	Jack in the Box, Inc.(b)		185,257
	28,633	LKQ Corp.(b)		945,748
	4,583	Multimedia Games Holding Co., Inc.(b)		148,993
	2,773	Red Robin Gourmet Burgers, Inc.(b)		211,247
	10,523	Viacom, Inc., Class B		876,461
				5,227,527
		Consumer Staples—3.1%
	8,205	Green Mountain Coffee Roasters, Inc.(b)		515,356
	19,854	Pilgrim’s Pride Corp. (Brazil)(b)		281,331
				796,687
		Energy—1.0%
	3,015	Alliance Holdings GP LP		179,815
	5,139	Tesco Corp.(b)		88,288
				268,103
		Financials—6.4%
	2,108	AMBAC Financial Group, Inc.(b)		42,560
	2,596	American National Insurance Co.		262,378
	7,629	AmTrust Financial Services, Inc.(b)		292,648
	721	BofI Holding, Inc.(b)		43,563
	9,323	East West Bancorp, Inc.		314,092
	14,899	Fifth Third Bancorp		283,528
	2,055	First Interstate BancSystem, Inc.		51,601

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	854	Navigators Group, Inc. (The)(b)	$	48,029
	2,078	S&T Bancorp, Inc.		50,953
	2,090	Sandy Spring Bancorp, Inc.		51,184
	2,037	Selective Insurance Group, Inc.		53,512
	3,204	United Community Banks, Inc.(b)		49,950
	1,628	United Fire Group, Inc.		51,608
	1,628	WesBanco, Inc.		47,863
				1,643,469
		Health Care—14.7%
	7,084	Amedisys, Inc.(b)		115,328
	3,095	AmSurg Corp.(b)		132,745
	4,328	Celgene Corp.(b)		642,665
	14,700	Endo Health Solutions, Inc.(b)		642,831
	5,996	Henry Schein, Inc.(b)		674,130
	5,662	Impax Laboratories, Inc.(b)		114,712
	2,053	Magellan Health Services, Inc.(b)		120,511
	759	MWI Veterinary Supply, Inc.(b)		120,408
	2,485	PAREXEL International Corp.(b)		113,589
	14,534	PDL BioPharma, Inc.		117,580
	5,124	Santarus, Inc.(b)		119,543
	8,518	United Therapeutics Corp.(b)		754,013
	4,229	VCA Antech, Inc.(b)		120,315
				3,788,370
		Industrials—4.6%
	2,162	AMERCO		436,573
	1,179	G&K Services, Inc., Class A		73,569
	1,844	ICF International, Inc.(b)		63,839
	21,209	R.R. Donnelley & Sons Co.		393,851

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

9

PowerShares Dynamic OTC Portfolio (PWO) (continued)

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrials (continued)
	5,429	Republic Airways Holdings, Inc.(b)	$	63,954
	3,865	RPX Corp.(b)		69,029
	4,705	SkyWest, Inc.		70,763
				1,171,578
		Information Technology—48.5%
	40,348	Activision Blizzard, Inc.		671,391
	4,015	Acxiom Corp.(b)		133,419
	3,701	Advent Software, Inc.		124,169
	2,988	Aspen Technology, Inc.(b)		114,231
	2,773	Blackbaud, Inc.		99,828
	13,499	Brocade Communications Systems, Inc.(b)		108,262
	28,250	Cisco Systems, Inc.		635,625
	3,506	comScore, Inc.(b)		93,680
	673	CoStar Group, Inc.(b)		119,114
	4,084	Cray, Inc.(b)		91,318
	2,481	EchoStar Corp., Class A(b)		118,989
	24,789	Electronic Arts, Inc.(b)		650,711
	3,412	Electronics for Imaging, Inc.(b)		117,066
	2,908	Euronet Worldwide, Inc.(b)		126,207
	2,720	First Solar, Inc.(b)		136,734
	73,325	Flextronics International Ltd. (Singapore)(b)		578,534
	14,129	Harmonic, Inc.(b)		103,283
	5,227	Insight Enterprises, Inc.(b)		110,133
	1,696	Interactive Intelligence Group, Inc.(b)		104,219
	2,811	InterDigital, Inc.		108,926
	2,029	j2 Global, Inc.		111,555
	2,002	Jack Henry & Associates, Inc.		109,329
	9,032	Kulicke & Soffa Industries, Inc. (Singapore)(b)		116,513
	14,110	Lam Research Corp.(b)		765,185
	17,180	Linear Technology Corp.		706,785
	1,354	Littelfuse, Inc.		115,131
	1,142	Manhattan Associates, Inc.(b)		121,635
	3,511	ManTech International Corp., Class A		98,097
	48,537	Micron Technology, Inc.(b)		858,134
	3,051	Plexus Corp.(b)		116,792
	1,917	Power Integrations, Inc.		110,113
	11,935	SanDisk Corp.		829,483
	6,140	Sanmina Corp.(b)		89,398
	6,682	Sapient Corp.(b)		105,643
	2,823	SS&C Technologies Holdings, Inc.(b)		110,944
	2,385	Stamps.com, Inc.(b)		108,374
	4,648	SunPower Corp. (France)(b)		140,323
	2,584	Synaptics, Inc.(b)		120,156
	5,441	Take-Two Interactive Software, Inc.(b)		97,448
	4,082	TeleTech Holdings, Inc.(b)		108,051
	17,239	Texas Instruments, Inc.		725,417
	2,849	Ubiquiti Networks, Inc.		109,914
	8,775	United Online, Inc.		106,966
	10,651	Western Digital Corp.		741,629
	15,167	Xilinx, Inc.		688,885
	24,286	Yahoo!, Inc.(b)		799,738
				12,457,477

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Materials—0.6%
	1,937	Balchem Corp.	$	110,913
	971	Innospec, Inc.		44,724
				155,637
		Telecommunication Services—0.6%
	921	Atlantic Tele-Network, Inc.		51,042
	23,447	Frontier Communications Corp.		103,401
				154,443
		Total Common Stocks and Other Equity Interests (Cost $23,074,864)		25,663,291
		Money Market Fund—0.3%
	74,312	Premier Portfolio—Institutional Class(c) (Cost $74,312)		74,312
		Total Investments (Cost $23,149,176)—100.2%		25,737,603
		Other assets less liabilities—(0.2)%		(62,245	)
		Net Assets—100.0%	$	25,675,358

Notes to Schedule of Investments:

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

^(b)  Non-income producing security.

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

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

10

Portfolio Composition

PowerShares FTSE RAFI US 1000 Portfolio (PRF)

Sector Breakdown (% of the Fund’s Net Assets) as of October 31, 2013 (Unaudited)
Financials	21.4
Energy	12.0
Consumer Discretionary	11.5
Industrials	11.3
Information Technology	10.9
Health Care	10.6
Consumer Staples	9.8
Utilities	4.6
Telecommunication Services	4.0
Materials	3.9
Money Market Fund and Other Assets Less Liabilities	0.0

Schedule of Investments^(a)

PowerShares FTSE RAFI US 1000 Portfolio (PRF)

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—11.5%
	13,372	Abercrombie & Fitch Co., Class A	$	501,183
	8,041	Advance Auto Parts, Inc.		797,506
	20,328	Aeropostale, Inc.(b)(c)		188,847
	10,220	Amazon.com, Inc.(c)		3,720,387
	27,987	American Eagle Outfitters, Inc.		433,519
	9,402	ANN, Inc.		332,455
	44,842	Apollo Group, Inc., Class A)		1,196,833
	15,879	Ascena Retail Group, Inc.)		314,245
	16,324	Autoliv, Inc.		1,456,590
	8,752	AutoNation, Inc.(c)		422,109
	2,858	AutoZone, Inc.(c)		1,242,344
	24,848	Barnes & Noble, Inc.(c)		351,102
	25,955	Bed Bath & Beyond, Inc.(c)		2,006,841
	200,638	Best Buy Co., Inc.		8,587,306
	17,039	Big Lots, Inc.(c)		619,538
	9,899	BorgWarner, Inc.(c)		1,020,884
	12,559	Brinker International, Inc.		557,871
	8,065	Brunswick Corp.		363,973
	61,512	Cablevision Systems Corp., Class A		956,512
	26,891	Caesars Entertainment Corp.(b)(c)		468,441
	100,624	Career Education Corp.(c)		551,419
	27,158	CarMax, Inc.(c)		1,276,154
	47,425	Carnival Corp.		1,643,276
	1,061	CBS Corp., Class A		62,716
	65,654	CBS Corp., Class B		3,882,778
	9,682	Charter Communications, Inc., Class A(c)		1,299,712
	1,098	Chipotle Mexican Grill, Inc.(c)		578,613
	13,210	Cinemark Holdings, Inc.		433,420

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Discretionary (continued)
	16,839	Coach, Inc.	$	853,400
	236,500	Comcast Corp., Class A		11,252,670
	59,511	Comcast Corp. Special, Class A(c)		2,755,359
	13,216	Cooper Tire & Rubber Co.		343,748
	20,288	CST Brands, Inc.(c)		654,085
	30,073	D.R. Horton, Inc.		569,883
	45,791	Dana Holding Corp.		897,504
	23,960	Darden Restaurants, Inc.		1,234,659
	30,239	Delphi Automotive PLC (United Kingdom)		1,729,671
	8,673	DeVry, Inc.		311,361
	6,738	Dick’s Sporting Goods, Inc.		358,529
	5,020	Dillard’s, Inc., Class A		411,540
	79,055	DIRECTV(c)		4,940,147
	8,296	Discovery Communications, Inc., Class A(c)		737,680
	5,005	Discovery Communications, Inc., Class C(c)		413,964
	29,785	DISH Network Corp., Class A		1,435,637
	25,038	Dollar General Corp.(c)		1,446,696
	17,532	Dollar Tree, Inc.(c)		1,023,869
	9,230	Domino’s Pizza, Inc.		618,964
	7,569	Expedia, Inc.		445,663
	11,757	Family Dollar Stores, Inc.		809,822
	20,828	Foot Locker, Inc.		722,732
	1,197,058	Ford Motor Co.		20,481,662
	3,223	Fossil Group, Inc.(c)		409,128
	49,685	GameStop Corp., Class A		2,723,732
	63,311	Gannett Co., Inc.		1,751,815
	36,617	Gap, Inc. (The)		1,354,463
	17,677	Garmin Ltd.(b)		826,400

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

11

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

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Discretionary (continued)
	294,394	General Motors Co.(c)	$	10,877,858
	15,819	Gentex Corp.		465,711
	22,138	Genuine Parts Co.		1,745,138
	8,101	GNC Holdings, Inc., Class A		476,501
	149,189	Goodyear Tire & Rubber Co. (The)		3,129,985
	5,778	Group 1 Automotive, Inc.		369,792
	13,737	Guess?, Inc.		429,281
	34,874	H&R Block, Inc.		991,817
	14,458	Hanesbrands, Inc.(c)		984,879
	22,032	Harley-Davidson, Inc.		1,410,929
	8,968	Harman International Industries, Inc.		726,587
	17,508	Hasbro, Inc.		904,288
	153,674	Home Depot, Inc. (The)		11,969,668
	6,296	Hyatt Hotels Corp., Class A(c)		299,690
	44,974	International Game Technology		845,511
	60,636	Interpublic Group of Cos., Inc. (The)		1,018,685
	20,415	ITT Educational Services, Inc.(b)(c)		819,050
	70,992	J.C. Penney Co., Inc.(b)		532,440
	8,849	Jack in the Box, Inc.(c)		359,977
	13,395	Jarden Corp.(c)		741,547
	6,878	John Wiley & Sons, Inc., Class A		345,895
	166	John Wiley & Sons, Inc., Class B		8,086
	127,831	Johnson Controls, Inc.		5,899,401
	32,907	Jones Group, Inc. (The)		511,375
	46,806	Kohl’s Corp.		2,658,581
	36,601	L Brands, Inc.		2,291,589
	8,763	Lamar Advertising Co., Class A(c)		400,557
	17,649	Las Vegas Sands Corp.		1,239,313
	19,428	Lear Corp.		1,503,533
	23,545	Leggett & Platt, Inc.		700,228
	12,491	Lennar Corp., Class A		444,055
	745	Lennar Corp., Class B		21,955
	18,127	Liberty Global PLC, Class A (United Kingdom)(c)		1,420,613
	156	Liberty Global PLC, Class B (United Kingdom)(c)		12,246
	15,761	Liberty Global PLC, Class C (United Kingdom)(c)		1,179,868
	87,754	Liberty Interactive Corp., Class A(c)		2,365,848
	243	Liberty Interactive Corp., Class B(c)		6,556
	3,490	Liberty Media Corp., Class A(c)		533,656
	16	Liberty Media Corp., Class B(c)		2,412
	43,699	Live Nation Entertainment, Inc.(c)		849,509
	18,473	LKQ Corp.(c)		610,163
	170,664	Lowe’s Cos., Inc.		8,495,654
	73,939	Macy’s, Inc.		3,409,327
	22,204	Marriott International, Inc., Class A		1,000,956
	33,336	Mattel, Inc.		1,479,118
	96,497	McDonald’s Corp.		9,313,890
	96,605	MGM Resorts International(c)		1,839,359
	8,253	Mohawk Industries, Inc.(c)		1,092,862
	12,047	Murphy USA, Inc.(c)		488,867
	1,689	Netflix, Inc.(c)		544,669
	30,950	New York Times Co. (The), Class A(c)		428,038
	42,220	Newell Rubbermaid, Inc.		1,250,979
	35,610	News Corp., Class A(c)		626,736

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Discretionary (continued)
	11,794	News Corp., Class B(c)	$	211,466
	46,430	NIKE, Inc., Class B		3,517,537
	18,921	Nordstrom, Inc.		1,144,153
	527	NVR, Inc.(c)		483,428
	212,491	Office Depot, Inc.(c)		1,187,825
	43,591	OfficeMax, Inc.		652,993
	35,366	Omnicom Group, Inc.		2,408,778
	8,659	O’Reilly Automotive, Inc.(c)		1,072,071
	1,630	Panera Bread Co., Class A(c)		257,410
	9,516	Penn National Gaming, Inc.(c)		556,781
	13,189	Penske Automotive Group, Inc.		522,548
	10,001	PetSmart, Inc.		727,673
	3,529	Polaris Industries, Inc.		462,123
	1,054	Priceline.com, Inc.(c)		1,110,737
	20,017	PulteGroup, Inc.(c)		353,300
	4,152	PVH Corp.		517,215
	156,649	RadioShack Corp.(b)		440,184
	3,634	Ralph Lauren Corp.		601,936
	41,592	Regal Entertainment Group, Class A(b)		790,664
	15,115	Regis Corp.		219,167
	15,143	Rent-A-Center, Inc.		518,496
	15,652	Ross Stores, Inc.		1,210,682
	30,319	Royal Caribbean Cruises Ltd.		1,274,611
	23,015	Saks, Inc.(c)		368,010
	11,590	Sally Beauty Holdings, Inc.(c)		305,049
	4,871	Scripps Networks Interactive, Inc., Class A		392,115
	31,969	Sears Holdings Corp.(b)(c)		1,856,759
	27,984	Service Corp. International		503,992
	9,595	Signet Jewelers Ltd.		716,363
	17,176	Sonic Automotive, Inc., Class A		382,681
	216,515	Staples, Inc.		3,490,222
	28,662	Starbucks Corp.		2,323,055
	17,034	Starwood Hotels & Resorts Worldwide, Inc.		1,254,043
	16,034	Starz, Class A(c)		483,425
	75	Starz, Class B(c)		2,260
	125,798	Target Corp.		8,150,452
	17,060	Tenneco, Inc.(c)		905,374
	10,569	Tiffany & Co.		836,748
	46,598	Time Warner Cable, Inc.		5,598,750
	159,600	Time Warner, Inc.		10,970,904
	54,899	TJX Cos., Inc. (The)		3,337,310
	12,799	Toll Brothers, Inc.(c)		420,831
	5,174	Tractor Supply Co.(c)		369,165
	56,241	TravelCenters of America LLC(c)		467,363
	26,181	TRW Automotive Holdings Corp.(c)		1,966,455
	4,336	Tupperware Brands Corp.		388,722
	146,313	Twenty-First Century Fox, Inc.		4,986,347
	40,447	Twenty-First Century Fox, Inc., Class B(c)		1,375,198
	7,613	Urban Outfitters, Inc.(c)		288,380
	10,681	Valassis Communications, Inc.(b)(c)		292,232
	7,999	VF Corp.		1,719,785
	1,200	Viacom, Inc., Class A		100,260
	39,857	Viacom, Inc., Class B		3,319,689
	15,558	Visteon Corp.(c)		1,199,366
	162,005	Walt Disney Co. (The)		11,111,923
	1,252	Washington Post Co. (The), Class B		805,437

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

12

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

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Discretionary (continued)
	57,971	Wendy’s Co. (The)	$	503,768
	17,673	Whirlpool Corp.		2,580,435
	8,670	Williams-Sonoma, Inc.		454,655
	12,644	Wyndham Worldwide Corp.		839,562
	10,876	Wynn Resorts Ltd.		1,808,135
	33,634	Yum! Brands, Inc.		2,274,331
				288,247,914
		Consumer Staples—9.8%
	338,364	Altria Group, Inc.		12,597,292
	5,230	Andersons, Inc. (The)		387,961
	203,477	Archer-Daniels-Midland Co.		8,322,209
	91,151	Avon Products, Inc.		1,595,142
	17,307	Beam, Inc.		1,164,761
	3,803	Brown-Forman Corp., Class A		274,120
	8,591	Brown-Forman Corp., Class B		626,971
	53,637	Bunge Ltd.		4,405,207
	23,238	Campbell Soup Co.		989,242
	6,453	Casey’s General Stores, Inc.		470,295
	54,838	Chiquita Brands International, Inc.(c)		567,573
	8,274	Church & Dwight Co., Inc.		539,051
	13,616	Clorox Co. (The)		1,228,027
	362,814	Coca-Cola Co. (The)		14,356,550
	45,893	Coca-Cola Enterprises, Inc.		1,915,115
	70,055	Colgate-Palmolive Co.		4,534,660
	63,156	ConAgra Foods, Inc.		2,008,992
	14,647	Constellation Brands, Inc., Class A(c)		956,449
	106	Constellation Brands, Inc., Class B(c)		6,638
	61,524	Costco Wholesale Corp.		7,259,832
	212,877	CVS Caremark Corp.		13,253,722
	46,088	Dean Foods Co.(c)		898,716
	23,762	Dr Pepper Snapple Group, Inc.		1,125,131
	8,838	Energizer Holdings, Inc.(c)		867,096
	10,596	Estee Lauder Cos., Inc. (The), Class A		751,892
	17,239	Flowers Foods, Inc.		436,836
	9,683	Fresh Del Monte Produce, Inc.		257,471
	76,787	General Mills, Inc.		3,871,601
	6,382	Green Mountain Coffee Roasters, Inc.(b)(c)		400,853
	6,486	Harris Teeter Supermarkets, Inc.		319,890
	10,613	Herbalife Ltd. (Cayman Islands)(b)		687,935
	10,663	Hershey Co. (The)		1,058,196
	52,240	Hillshire Brands Co.		1,715,039
	13,670	Hormel Foods Corp.		594,098
	8,799	Ingredion, Inc.		578,622
	13,102	J.M. Smucker Co. (The)		1,457,073
	29,069	Kellogg Co.		1,838,614
	48,010	Kimberly-Clark Corp.		5,185,080
	85,914	Kraft Foods Group, Inc.(c)		4,672,003
	193,744	Kroger Co. (The)		8,299,993
	59,463	Lorillard, Inc.		3,033,208
	617	McCormick & Co., Inc.(b)		40,414
	9,547	McCormick & Co., Inc., Non-Voting		660,175
	8,773	Mead Johnson Nutrition Co.		716,403
	22,740	Molson Coors Brewing Co., Class B		1,227,960
	385,056	Mondelez International, Inc., Class A		12,953,284
	5,085	Monster Beverage Corp.(c)		291,015

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Staples (continued)
	15,655	Nash Finch Co.	$	439,279
	31,673	Pantry, Inc. (The)(c)		424,101
	168,976	PepsiCo, Inc.		14,209,192
	128,256	Philip Morris International, Inc.		11,430,175
	6,783	Post Holdings, Inc.(c)		291,330
	324,319	Procter & Gamble Co. (The)		26,188,759
	51,007	Reynolds American, Inc.		2,620,230
	900,690	Rite Aid Corp.(c)		4,800,678
	149,201	Safeway, Inc.		5,207,115
	749,328	SUPERVALU, Inc.(c)		5,267,776
	125,612	Sysco Corp.		4,062,292
	5,077	TreeHouse Foods, Inc.(c)		371,941
	85,475	Tyson Foods, Inc., Class A		2,365,093
	6,762	United Natural Foods, Inc.(c)		483,145
	6,754	Universal Corp.(b)		358,165
	152,742	Walgreen Co.		9,048,436
	315,939	Wal-Mart Stores, Inc.		24,248,318
	20,735	Whole Foods Market, Inc.(c)		1,309,001
				244,523,433
		Energy—12.0%
	149,941	Alpha Natural Resources, Inc.(c)		1,049,587
	52,757	Anadarko Petroleum Corp.		5,027,215
	68,534	Apache Corp.		6,085,819
	142,097	Arch Coal, Inc.(b)(c)		602,491
	6,327	Atwood Oceanics, Inc.(c)		336,153
	69,629	Baker Hughes, Inc.		4,044,749
	16,337	Bill Barrett Corp.(b)(c)		452,045
	12,444	Cabot Oil & Gas Corp.(c)		439,522
	20,202	Cameron International Corp.(c)		1,108,282
	171,490	Chesapeake Energy Corp.		4,794,860
	367,406	Chevron Corp.		44,074,024
	9,371	Cimarex Energy Co.		987,235
	17,107	Cloud Peak Energy, Inc.(c)		267,040
	6,117	Concho Resources, Inc.(c)		676,601
	500,621	ConocoPhillips		36,695,519
	31,518	CONSOL Energy, Inc.		1,150,407
	20,823	Cosan Ltd., Class A (Brazil)		328,170
	49,504	Denbury Resources, Inc.(c)		940,081
	81,965	Devon Energy Corp.		5,181,827
	18,466	Diamond Offshore Drilling, Inc.		1,143,599
	6,310	Dresser-Rand Group, Inc.(c)		383,459
	10,621	Energen Corp.		831,837
	24,468	Ensco PLC, Class A		1,410,580
	20,110	EOG Resources, Inc.		3,587,624
	12,519	EQT Corp.		1,071,752
	40,584	EXCO Resources, Inc.(b)(c)		219,559
	19,095	Exterran Holdings, Inc.(c)		545,162
	745,806	Exxon Mobil Corp.		66,839,134
	13,261	FMC Technologies, Inc.(c)		670,344
	60,004	Forest Oil Corp.(c)		284,419
	95,285	Halliburton Co.		5,052,964
	19,577	Helix Energy Solutions Group, Inc.(c)		463,192
	9,396	Helmerich & Payne, Inc.		728,660
	70,643	Hess Corp.		5,736,212
	20,073	HollyFrontier Corp.		924,562

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

13

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

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Energy (continued)
	39,675	Key Energy Services, Inc.(c)	$	310,258
	39,782	Kinder Morgan, Inc.		1,404,702
	206,056	Marathon Oil Corp.		7,265,535
	57,432	Marathon Petroleum Corp.		4,115,577
	52,374	McDermott International, Inc.(c)		370,284
	46,641	Murphy Oil Corp.		2,813,385
	87,835	Nabors Industries Ltd.		1,535,356
	47,923	National Oilwell Varco, Inc.		3,890,389
	44,787	Newfield Exploration Co.(c)		1,363,764
	41,704	Noble Corp.		1,572,241
	26,745	Noble Energy, Inc.		2,004,003
	113,113	Occidental Petroleum Corp.		10,867,897
	5,544	Oceaneering International, Inc.		476,119
	7,528	Oil States International, Inc.(c)		817,767
	23,971	Patterson-UTI Energy, Inc.		581,536
	63,909	Peabody Energy Corp.		1,244,947
	210,215	Phillips 66		13,544,152
	6,855	Pioneer Natural Resources Co.		1,403,767
	24,747	QEP Resources, Inc.		818,136
	5,798	Range Resources Corp.		438,967
	18,551	Rowan Cos. PLC, Class A(c)		669,320
	62,375	SandRidge Energy, Inc.(b)(c)		395,457
	109,500	Schlumberger Ltd.		10,262,340
	6,344	SEACOR Holdings, Inc.(c)		620,443
	5,637	SM Energy Co.		499,495
	30,495	Southwestern Energy Co.(c)		1,135,024
	96,654	Spectra Energy Corp.		3,437,983
	17,763	Superior Energy Services, Inc.(c)		476,581
	5,479	Targa Resources Corp.		424,951
	10,218	Teekay Corp. (Bermuda)		443,768
	31,129	Tesoro Corp.(c)		1,521,897
	8,902	Tidewater, Inc.		536,078
	24,632	Ultra Petroleum Corp.(b)(c)		452,244
	10,070	Unit Corp.(c)		517,699
	178,768	Valero Energy Corp.		7,359,879
	193,749	Weatherford International Ltd.(c)		3,185,234
	10,322	Western Refining, Inc.(b)		333,091
	13,374	Whiting Petroleum Corp.(c)		894,587
	59,258	Williams Cos., Inc. (The)		2,116,103
	25,869	World Fuel Services Corp.		986,902
	104,749	WPX Energy, Inc.(c)		2,319,143
				299,561,687
		Financials—21.4%
	50,808	ACE Ltd.		4,849,116
	2,788	Affiliated Managers Group, Inc.(c)		550,463
	73,260	Aflac, Inc.		4,760,435
	7,055	Alexandria Real Estate Equities, Inc. REIT		464,078
	1,084	Alleghany Corp.(c)		439,475
	6,344	Allied World Assurance Co. Holdings AG		686,992
	106,138	Allstate Corp. (The)		5,631,682
	5,893	American Campus Communities, Inc. REIT		203,662
	21,733	American Capital Agency Corp. REIT		472,041
	107,934	American Express Co.		8,829,001
	19,334	American Financial Group, Inc.		1,087,731
	397,582	American International Group, Inc.		20,535,110

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	8,848	American Tower Corp. REIT	$	702,089
	27,857	Ameriprise Financial, Inc.		2,800,743
	237,421	Annaly Capital Management, Inc. REIT		2,799,194
	41,932	Anworth Mortgage Asset Corp. REIT		205,886
	30,590	Aon PLC (United Kingdom)		2,419,363
	21,420	Apartment Investment & Management Co., Class A REIT		599,332
	17,764	Arch Capital Group Ltd.(c)		1,029,601
	14,059	Arthur J. Gallagher & Co.		667,100
	14,588	Aspen Insurance Holdings Ltd.		569,078
	37,862	Associated Banc-Corp.		615,636
	29,972	Assurant, Inc.		1,752,763
	26,393	Assured Guaranty Ltd.		541,056
	30,816	Astoria Financial Corp.		407,079
	8,037	AvalonBay Communities, Inc. REIT		1,005,027
	20,754	Axis Capital Holdings Ltd.		984,155
	18,855	BancorpSouth, Inc.		416,695
	3,939,255	Bank of America Corp.		54,992,000
	7,551	Bank of Hawaii Corp.		437,807
	212,828	Bank of New York Mellon Corp. (The)		6,767,930
	146,057	BB&T Corp.		4,961,556
	243,052	Berkshire Hathaway, Inc., Class B(c)		27,970,424
	19,830	BioMed Realty Trust, Inc. REIT		395,014
	13,039	BlackRock, Inc.		3,922,262
	14,694	Boston Properties, Inc. REIT		1,520,829
	32,333	Brandywine Realty Trust REIT		460,099
	7,734	BRE Properties, Inc. REIT		422,354
	10,236	Brown & Brown, Inc.		326,835
	7,399	Camden Property Trust REIT		475,016
	105,619	Capital One Financial Corp.		7,252,857
	57,402	CapitalSource, Inc.		750,818
	27,841	Capitol Federal Financial, Inc.		352,745
	24,743	Capstead Mortgage Corp. REIT		292,710
	20,045	CBL & Associates Properties, Inc. REIT		397,091
	24,534	CBRE Group, Inc., Class A(c)		569,925
	127,010	Charles Schwab Corp. (The)		2,876,776
	185,214	Chimera Investment Corp. REIT		561,198
	45,410	Chubb Corp. (The)		4,181,353
	25,150	Cincinnati Financial Corp.		1,257,500
	29,573	CIT Group, Inc.(c)		1,424,236
	795,465	Citigroup, Inc.		38,802,783
	6,908	City National Corp.		498,136
	46,328	CME Group, Inc.		3,438,001
	93,318	CNO Financial Group, Inc.		1,453,894
	40,697	Comerica, Inc.		1,762,180
	12,826	Commerce Bancshares, Inc.		590,124
	23,516	CommonWealth REIT		573,085
	12,524	Corporate Office Properties Trust REIT		308,090
	10,592	Corrections Corp. of America REIT(c)		391,904
	8,821	Cullen/Frost Bankers, Inc.		624,439
	21,605	CYS Investments, Inc. REIT		183,426
	38,637	DCT Industrial Trust, Inc. REIT		299,437
	27,246	DDR Corp. REIT		461,820
	32,822	DiamondRock Hospitality Co. REIT		373,843
	8,141	Digital Realty Trust, Inc. REIT(b)(c)		388,000
	57,718	Discover Financial Services		2,994,410

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

14

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

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	13,894	Douglas Emmett, Inc. REIT	$	346,377
	43,133	Duke Realty Corp. REIT		714,714
	76,594	E*TRADE Financial Corp.(c)		1,295,205
	14,362	East West Bancorp, Inc.		483,856
	6,994	Eaton Vance Corp.		292,419
	10,178	Endurance Specialty Holdings Ltd.		562,742
	6,273	EPR Properties REIT		322,244
	30,321	Equity Residential REIT		1,587,608
	3,782	Erie Indemnity Co., Class A		271,623
	2,751	Essex Property Trust, Inc. REIT		442,911
	8,672	Everest Re Group Ltd.		1,333,233
	23,783	F.N.B. Corp.		297,525
	4,796	Federal Realty Investment Trust REIT		496,866
	20,808	Federated Investors, Inc., Class B(b)		564,313
	40,565	Fidelity National Financial, Inc., Class A		1,141,905
	183,080	Fifth Third Bancorp		3,484,012
	19,562	First American Financial Corp.		505,873
	52,359	First Horizon National Corp.		557,623
	80,745	First Niagara Financial Group, Inc.		890,617
	8,865	First Republic Bank		452,736
	23,630	FirstMerit Corp.		530,730
	32,490	Franklin Resources, Inc.		1,749,911
	36,683	Fulton Financial Corp.		447,899
	44,412	General Growth Properties, Inc. REIT		942,867
	273,984	Genworth Financial, Inc., Class A(c)		3,980,987
	7,365	Geo Group, Inc. (The) REIT		259,764
	85,760	Goldman Sachs Group, Inc. (The)		13,795,354
	11,229	Hancock Holding Co.		368,087
	12,088	Hanover Insurance Group, Inc. (The)		707,631
	207,638	Hartford Financial Services Group, Inc. (The)		6,997,401
	15,013	Hatteras Financial Corp. REIT		273,237
	15,895	HCC Insurance Holdings, Inc.		725,607
	34,115	HCP, Inc. REIT		1,415,772
	16,291	Health Care REIT, Inc.		1,056,471
	9,605	Healthcare Realty Trust, Inc. REIT		230,616
	9,986	Highwoods Properties, Inc. REIT		385,460
	5,520	Home Properties, Inc. REIT		332,911
	30,277	Hospitality Properties Trust REIT		889,538
	82,305	Host Hotels & Resorts, Inc. REIT		1,526,758
	118,261	Hudson City Bancorp, Inc.		1,061,984
	171,089	Huntington Bancshares, Inc.		1,505,583
	27,235	Interactive Brokers Group, Inc., Class A		561,858
	3,789	IntercontinentalExchange, Inc.(c)		730,254
	54,605	Invesco Ltd.(d)		1,842,919
	12,810	Invesco Mortgage Capital, Inc. REIT(d)		197,914
	43,173	iStar Financial, Inc. REIT(c)		545,275
	28,471	Janus Capital Group, Inc.		281,009
	4,242	Jones Lang LaSalle, Inc.		403,838
	799,985	JPMorgan Chase & Co.		41,231,227
	13,821	Kemper Corp.		511,653
	225,801	KeyCorp		2,829,287
	5,521	Kilroy Realty Corp. REIT		293,496
	44,266	Kimco Realty Corp. REIT		950,834
	10,289	LaSalle Hotel Properties REIT		319,473
	29,804	Legg Mason, Inc.		1,146,560
	20,949	Leucadia National Corp.		593,695

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	30,470	Lexington Realty Trust REIT	$	356,499
	18,067	Liberty Property Trust REIT		671,912
	78,993	Lincoln National Corp.		3,587,072
	65,379	Loews Corp.		3,158,459
	17,026	M&T Bank Corp.		1,915,936
	11,443	Macerich Co. (The) REIT		677,540
	20,276	Mack-Cali Realty Corp. REIT		416,875
	1,321	Markel Corp.(c)		699,694
	61,926	Marsh & McLennan Cos., Inc.		2,836,211
	34,101	McGraw Hill Financial, Inc.		2,376,158
	7,694	Mercury General Corp.		358,233
	234,230	MetLife, Inc.		11,081,421
	57,200	MFA Financial, Inc. REIT		423,852
	4,095	Mid-America Apartment Communities, Inc. REIT		271,908
	12,675	Moody’s Corp.		895,615
	319,173	Morgan Stanley		9,169,840
	16,064	MSCI, Inc., Class A(c)		654,929
	25,297	NASDAQ OMX Group, Inc. (The)		896,273
	9,484	National Retail Properties, Inc. REIT(b)		326,250
	106,452	New York Community Bancorp, Inc.(b)		1,725,587
	32,783	Northern Trust Corp.		1,849,617
	44,761	NYSE Euronext(b)		1,970,379
	62,403	Old Republic International Corp.		1,047,746
	13,097	PartnerRe Ltd.		1,312,450
	71,959	People’s United Financial, Inc.		1,038,368
	37,313	PHH Corp.(c)		897,378
	33,793	Piedmont Office Realty Trust, Inc., Class A REIT		624,495
	5,539	Platinum Underwriters Holdings Ltd.		344,470
	17,619	Plum Creek Timber Co., Inc. REIT		799,903
	100,110	PNC Financial Services Group, Inc.		7,361,088
	29,594	Popular, Inc.(c)		747,248
	11,928	Primerica, Inc.		512,308
	62,989	Principal Financial Group, Inc.		2,989,458
	6,348	ProAssurance Corp.		287,691
	104,288	Progressive Corp. (The)		2,708,359
	42,853	Prologis, Inc. REIT		1,711,977
	26,075	Protective Life Corp.		1,201,536
	127,952	Prudential Financial, Inc.		10,414,013
	8,665	Public Storage REIT		1,446,795
	11,214	Raymond James Financial, Inc.		511,919
	11,417	Rayonier, Inc. REIT		536,827
	9,232	Realty Income Corp. REIT		384,513
	12,755	Redwood Trust, Inc. REIT(b)		223,468
	9,379	Regency Centers Corp. REIT		484,519
	390,974	Regions Financial Corp.		3,765,080
	19,368	Reinsurance Group of America, Inc.		1,378,614
	6,687	RenaissanceRe Holdings Ltd.		626,639
	12,153	RLJ Lodging Trust REIT		306,985
	8,900	SEI Investments Co.		295,391
	11,621	Selective Insurance Group, Inc.		305,284
	16,018	Senior Housing Properties Trust REIT		394,684
	3,541	Signature Bank(c)		360,545
	15,566	Simon Property Group, Inc. REIT		2,405,725
	9,239	SL Green Realty Corp. REIT		873,732

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

15

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

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	69,094	SLM Corp.	$	1,752,915
	12,649	StanCorp Financial Group, Inc.		745,026
	9,312	Starwood Property Trust, Inc. REIT		239,225
	61,930	State Street Corp.		4,339,435
	144,018	SunTrust Banks, Inc.		4,844,766
	28,390	Susquehanna Bancshares, Inc.		334,576
	4,887	SVB Financial Group(c)		468,077
	34,605	Symetra Financial Corp.		648,152
	218,446	Synovus Financial Corp.		709,949
	16,338	T. Rowe Price Group, Inc.		1,264,725
	3,676	Taubman Centers, Inc. REIT		241,844
	34,011	TCF Financial Corp.		516,287
	17,690	TD Ameritrade Holding Corp.		482,229
	16,313	Torchmark Corp.		1,188,565
	92,407	Travelers Cos., Inc. (The)		7,974,724
	269,881	U.S. Bancorp		10,082,754
	25,924	UDR, Inc. REIT		643,174
	72,869	Unum Group		2,312,862
	13,958	Validus Holdings Ltd. (Bermuda)		551,062
	39,001	Valley National Bancorp(b)(c)		380,260
	21,917	Ventas, Inc. REIT		1,429,865
	20,928	Vornado Realty Trust REIT		1,863,848
	18,100	W.R. Berkley Corp.		794,771
	6,806	Waddell & Reed Financial, Inc., Class A		420,270
	10,019	Washington REIT		262,598
	20,072	Washington Federal, Inc.		457,240
	13,397	Webster Financial Corp.		373,642
	14,011	Weingarten Realty Investors REIT		444,569
	848,549	Wells Fargo & Co.		36,224,557
	168,936	Weyerhaeuser Co. REIT		5,135,654
	982	White Mountains Insurance Group Ltd.		573,557
	23,950	Willis Group Holdings PLC		1,079,426
	59,847	XL Group PLC		1,829,523
	42,126	Zions Bancorp.		1,195,115
				535,830,462
		Health Care—10.6%
	330,264	Abbott Laboratories		12,071,149
	129,212	AbbVie, Inc.		6,260,321
	10,082	Actavis PLC(c)		1,558,476
	75,360	Aetna, Inc.		4,725,072
	28,278	Agilent Technologies, Inc.		1,435,391
	15,655	Alere, Inc.(c)		528,043
	11,152	Allergan, Inc.		1,010,483
	94,120	AmerisourceBergen Corp.		6,148,860
	48,065	Amgen, Inc.		5,575,540
	50,093	Baxter International, Inc.		3,299,626
	22,662	Becton, Dickinson and Co.		2,382,456
	10,351	Biogen Idec, Inc.(c)		2,527,611
	2,276	Bio-Rad Laboratories, Inc., Class A(c)		281,132
	52	Bio-Rad Laboratories, Inc., Class B(c)		6,070
	343,924	Boston Scientific Corp.(c)		4,020,472
	232,783	Bristol-Myers Squibb Co.		12,225,763
	10,043	Brookdale Senior Living, Inc.(c)		271,964
	5,570	C.R. Bard, Inc.		758,745
	138,147	Cardinal Health, Inc.		8,103,703

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Health Care (continued)
	32,983	CareFusion Corp.(c)	$	1,278,751
	11,617	Celgene Corp.(c)		1,725,008
	9,547	Centene Corp.(c)		536,160
	11,178	Cerner Corp.(c)		626,303
	38,467	Cigna Corp.		2,961,190
	36,526	Community Health Systems, Inc.(c)		1,593,629
	6,134	Covance, Inc.(c)		547,521
	42,584	Covidien PLC		2,730,060
	18,816	DaVita HealthCare Partners, Inc.(c)		1,057,647
	10,787	DENTSPLY International, Inc.		508,068
	4,399	Edwards Lifesciences Corp.(c)		286,771
	140,136	Eli Lilly & Co.		6,981,576
	15,983	Endo Health Solutions, Inc.(c)		698,937
	55,807	Express Scripts Holding Co.(c)		3,489,054
	36,547	Forest Laboratories, Inc.(c)		1,718,805
	59,054	Gilead Sciences, Inc.(c)		4,192,243
	96,560	HCA Holdings, Inc.		4,551,838
	124,812	Health Management Associates, Inc., Class A(c)		1,600,090
	48,457	Health Net, Inc.(c)		1,473,093
	11,969	HealthSouth Corp.(c)		420,232
	10,725	Henry Schein, Inc.(c)		1,205,812
	7,685	Hill-Rom Holdings, Inc.		317,314
	28,000	Hologic, Inc.(c)		626,920
	29,600	Hospira, Inc.(c)		1,199,392
	41,691	Humana, Inc.		3,841,826
	1,109	Intuitive Surgical, Inc.(c)		411,993
	319,563	Johnson & Johnson		29,594,729
	47,371	Kindred Healthcare, Inc.(c)		657,509
	11,860	Laboratory Corp. of America Holdings(c)		1,196,674
	16,923	Life Technologies Corp.(c)		1,274,471
	12,086	LifePoint Hospitals, Inc.(c)		624,121
	6,929	Magellan Health Services, Inc.(c)		406,732
	5,608	Mallinckrodt PLC(c)		235,592
	67,724	McKesson Corp.		10,587,970
	4,073	MEDNAX, Inc.(c)		444,038
	122,776	Medtronic, Inc.		7,047,342
	396,572	Merck & Co., Inc.		17,881,431
	1,469	Mettler-Toledo International, Inc.(c)		363,519
	29,111	Mylan, Inc.(c)		1,102,434
	22,133	Omnicare, Inc.		1,220,635
	18,574	Owens & Minor, Inc.		695,039
	9,718	Patterson Cos., Inc.		413,112
	9,638	PerkinElmer, Inc.		366,630
	3,086	Perrigo Co.		425,529
	1,113,043	Pfizer, Inc.		34,148,159
	22,555	Quest Diagnostics, Inc.		1,351,270
	7,780	ResMed, Inc.(b)		402,537
	27,623	St. Jude Medical, Inc.		1,585,284
	7,583	STERIS Corp.		342,676
	22,987	Stryker Corp.		1,697,820
	4,995	Teleflex, Inc.		460,439
	27,251	Tenet Healthcare Corp.(c)		1,285,975
	41,917	Thermo Fisher Scientific, Inc.		4,098,644
	181,657	UnitedHealth Group, Inc.		12,399,907
	31,774	Universal American Corp.		235,763

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

16

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

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Health Care (continued)
	11,283	Universal Health Services, Inc., Class B	$	908,958
	6,930	Varian Medical Systems, Inc.(c)		502,979
	12,395	VCA Antech, Inc.(c)		352,638
	4,452	Waters Corp.(c)		449,296
	10,607	WellCare Health Plans, Inc.(c)		707,275
	111,785	WellPoint, Inc.		9,479,368
	15,087	Zimmer Holdings, Inc.		1,319,660
				266,037,265
		Industrials—11.3%
	72,046	3M Co.		9,066,989
	14,013	ABM Industries, Inc.		385,498
	3,803	Acuity Brands, Inc.		382,240
	26,434	ADT Corp. (The)(c)		1,146,443
	24,405	AECOM Technology Corp.(c)		775,591
	19,474	AerCap Holdings NV(c)		395,127
	20,699	AGCO Corp.		1,208,408
	25,330	Aircastle Ltd.		477,977
	11,232	Alaska Air Group, Inc.(c)		793,653
	8,042	Alliant Techsystems, Inc.		875,533
	12,007	AMETEK, Inc.		574,295
	6,868	Armstrong World Industries, Inc.		366,957
	52,763	Avis Budget Group, Inc.(c)		1,653,065
	9,283	B/E Aerospace, Inc.(c)		753,408
	15,174	Babcock & Wilcox Co. (The)		488,755
	93,946	Boeing Co. (The)		12,259,953
	10,265	Briggs & Stratton Corp.		188,260
	12,526	Brink’s Co. (The)		393,316
	18,380	C.H. Robinson Worldwide, Inc.		1,098,021
	5,805	Carlisle Cos., Inc.		421,907
	80,683	Caterpillar, Inc.		6,725,735
	8,105	Chicago Bridge & Iron Co. NV		600,499
	13,972	Cintas Corp.		751,274
	12,520	Con-way, Inc.		515,824
	2,454	Copa Holdings SA, Class A (Panama)		366,971
	14,128	Covanta Holding Corp.		242,578
	5,717	Crane Co.		363,029
	132,315	CSX Corp.		3,448,129
	16,487	Cummins, Inc.		2,094,179
	8,451	Curtiss-Wright Corp.		420,691
	38,178	Danaher Corp.		2,752,252
	42,002	Deere & Co.		3,437,444
	52,691	Delta Air Lines, Inc.		1,389,989
	7,730	Deluxe Corp.		364,006
	8,859	Donaldson Co., Inc.		350,905
	20,424	Dover Corp.		1,874,719
	213,314	DryShips, Inc. (Greece)(b)(c)		586,613
	4,831	Dun & Bradstreet Corp. (The)		525,564
	40,459	Eaton Corp. PLC		2,854,787
	11,353	EMCOR Group, Inc.		420,742
	92,601	Emerson Electric Co.		6,201,489
	6,528	EnerSys		433,133
	8,790	Equifax, Inc.		568,449
	5,122	Esterline Technologies Corp.(c)		410,580
	63,798	Exelis, Inc.		1,052,029
	19,791	Expeditors International of Washington, Inc.		896,334

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrials (continued)
	11,309	Fastenal Co.	$	563,188
	42,833	FedEx Corp.		5,611,123
	13,173	Flowserve Corp.		915,128
	29,480	Fluor Corp.		2,188,006
	16,405	Fortune Brands Home & Security, Inc.		706,727
	25,321	Foster Wheeler AG (Switzerland)(c)		683,414
	9,054	FTI Consulting, Inc.(c)		367,411
	7,059	GATX Corp.		363,891
	19,721	General Cable Corp.		649,413
	70,625	General Dynamics Corp.		6,118,244
	1,853,483	General Electric Co.		48,450,046
	41,591	GrafTech International Ltd.(b)(c)		370,160
	23,502	Harsco Corp.		655,236
	77,226	Hertz Global Holdings, Inc.(c)		1,773,109
	80,354	Honeywell International, Inc.		6,969,102
	416	Hubbell, Inc., Class A		40,269
	5,105	Hubbell, Inc., Class B		548,992
	14,629	Huntington Ingalls Industries, Inc.		1,046,705
	7,428	IDEX Corp.		513,646
	2,527	IHS, Inc., Class A(c)		275,569
	54,445	Illinois Tool Works, Inc.		4,289,722
	38,079	Ingersoll-Rand PLC		2,571,475
	15,629	Iron Mountain, Inc.		414,794
	38,560	ITT Corp.		1,531,989
	5,814	J.B. Hunt Transport Services, Inc.		436,224
	26,351	Jacobs Engineering Group, Inc.(c)		1,602,668
	101,006	JetBlue Airways Corp.(c)		716,133
	10,891	Joy Global, Inc.		618,064
	6,317	Kansas City Southern		767,642
	30,896	KBR, Inc.		1,067,148
	15,049	Kelly Services, Inc., Class A		313,922
	10,117	Kennametal, Inc.		465,382
	3,891	Kirby Corp.(c)		344,315
	28,823	L-3 Communications Holdings, Inc.		2,895,270
	4,941	Lennox International, Inc.		385,694
	5,511	Lincoln Electric Holdings, Inc.		381,582
	65,362	Lockheed Martin Corp.		8,715,369
	19,552	Manitowoc Co., Inc. (The)		380,482
	27,439	Manpowergroup, Inc.		2,142,986
	58,897	Masco Corp.		1,244,494
	12,191	Matson, Inc.		330,254
	77,670	Meritor, Inc.(c)		533,593
	6,175	Moog, Inc., Class A(c)		368,833
	87	Moog, Inc., Class B(c)		5,173
	8,384	MRC Global, Inc.(c)		234,333
	3,307	MSC Industrial Direct Co., Inc., Class A		252,556
	46,668	Navistar International Corp.(b)(c)		1,687,515
	12,836	Nielsen Holdings NV (Netherland)		506,252
	45,601	Norfolk Southern Corp.		3,922,598
	69,247	Northrop Grumman Corp.		7,444,745
	7,818	Old Dominion Freight Line, Inc.(c)		366,664
	18,444	Oshkosh Corp.(c)		877,750
	22,198	Owens Corning(c)		797,574
	49,815	PACCAR, Inc.		2,769,714
	7,559	Pall Corp.		608,651
	18,866	Parker Hannifin Corp.		2,202,040

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

17

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

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrials (continued)
	10,835	Pentair Ltd.	$	726,920
	98,274	Pitney Bowes, Inc.(b)		2,097,167
	8,283	Precision Castparts Corp.		2,099,326
	11,593	Quad/Graphics, Inc.		404,828
	21,921	Quanta Services, Inc.(c)		662,233
	145,210	R.R. Donnelley & Sons Co.(b)		2,696,550
	70,561	Raytheon Co.		5,812,110
	4,392	Regal-Beloit Corp.		322,065
	35,636	Republic Airways Holdings, Inc.(c)		419,792
	50,460	Republic Services, Inc.		1,688,896
	13,239	Robert Half International, Inc.		510,099
	11,645	Rockwell Automation, Inc.		1,285,724
	15,641	Rockwell Collins, Inc.		1,092,211
	4,977	Roper Industries, Inc.		631,133
	15,843	Ryder System, Inc.		1,042,945
	29,778	SkyWest, Inc.		447,861
	6,321	Snap-On, Inc.		657,826
	33,065	Southwest Airlines Co.		569,379
	32,415	Spirit Aerosystems Holdings, Inc., Class A(c)		865,156
	8,766	SPX Corp.		795,164
	18,752	Stanley Black & Decker, Inc.		1,483,096
	21,394	Steelcase, Inc., Class A		350,648
	3,626	Stericycle, Inc.(c)		421,341
	4,201	Teledyne Technologies, Inc.(c)		373,133
	23,449	Terex Corp.(c)		819,543
	52,047	Textron, Inc.		1,498,433
	10,609	Timken Co. (The)		560,261
	4,921	Towers Watson & Co., Class A		564,980
	3,381	TransDigm Group, Inc.(c)		491,631
	9,661	Trinity Industries, Inc.		489,136
	4,849	Triumph Group, Inc.		347,431
	21,897	Tutor Perini Corp.(c)		502,536
	114,233	Tyco International Ltd.		4,175,216
	38,707	Union Pacific Corp.		5,860,240
	26,628	United Continental Holdings, Inc.(c)		904,021
	80,091	United Parcel Service, Inc., Class B		7,868,140
	9,611	United Rentals, Inc.(c)		620,774
	10,588	United Stationers, Inc.		470,531
	110,446	United Technologies Corp.		11,734,887
	22,562	URS Corp.		1,223,312
	76,086	US Airways Group, Inc.(b)(c)		1,671,609
	22,307	UTi Worldwide, Inc.		339,066
	4,303	W.W. Grainger, Inc.		1,157,378
	3,926	WABCO Holdings, Inc.(c)		336,380
	8,347	Waste Connections, Inc.		356,751
	88,171	Waste Management, Inc.		3,838,965
	11,332	Werner Enterprises, Inc.		262,449
	6,979	WESCO International, Inc.(c)		596,425
	17,187	Xylem, Inc.		592,951
				281,094,968
		Information Technology—10.9%
	43,593	Accenture PLC, Class A		3,204,086
	39,968	Activision Blizzard, Inc.		665,068
	34,717	Adobe Systems, Inc.(c)		1,881,661
	239,217	Advanced Micro Devices, Inc.(b)(c)		798,985

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	11,517	Akamai Technologies, Inc.(c)	$	515,271
	2,997	Alliance Data Systems Corp.(c)		710,469
	17,205	Altera Corp.		578,088
	20,719	Amdocs Ltd.		796,646
	66,813	Amkor Technology, Inc.(c)		354,777
	8,181	Amphenol Corp., Class A		656,852
	25,735	Analog Devices, Inc.		1,268,735
	6,420	Anixter International, Inc.(c)		548,846
	3,916	ANSYS, Inc.(c)		342,454
	25,077	AOL, Inc.		908,790
	41,886	Apple, Inc.		21,879,152
	172,113	Applied Materials, Inc.		3,072,217
	47,182	Arrow Electronics, Inc.(c)		2,265,680
	40,650	Atmel Corp.(c)		295,932
	13,852	Autodesk, Inc.(c)		552,833
	45,521	Automatic Data Processing, Inc.		3,412,709
	11,882	Avago Technologies Ltd., Class A		539,799
	57,717	Avnet, Inc.(c)		2,291,365
	17,550	Benchmark Electronics, Inc.(c)		398,911
	30,577	Broadcom Corp., Class A		817,017
	16,557	Broadridge Financial Solutions, Inc.		582,144
	69,359	Brocade Communications Systems, Inc.(c)		556,259
	41,340	CA, Inc.		1,312,958
	7,640	CACI International, Inc., Class A(c)		549,927
	8,255	Check Point Software Technologies Ltd. (Israel)(c)		478,955
	441,809	Cisco Systems, Inc.		9,940,702
	7,965	Citrix Systems, Inc.(c)		452,253
	13,048	Cognizant Technology Solutions Corp., Class A(c)		1,134,263
	37,867	Computer Sciences Corp.		1,865,328
	24,544	Convergys Corp.		484,499
	33,488	CoreLogic, Inc.(c)		1,114,146
	251,123	Corning, Inc.		4,291,692
	7,480	Cree, Inc.(c)		454,410
	14,745	Diebold, Inc.		441,760
	3,792	DST Systems, Inc.		321,448
	59,837	eBay, Inc.(c)		3,154,008
	6,753	EchoStar Corp., Class A(c)		323,874
	27,909	Electronic Arts, Inc.(c)		732,611
	194,044	EMC Corp.		4,670,639
	2,060	Equinix, Inc.(c)		332,649
	13,087	Facebook, Inc., Class A(c)		657,753
	24,410	Fairchild Semiconductor International, Inc.(c)		309,275
	27,125	Fidelity National Information Services, Inc.		1,322,344
	20,177	First Solar, Inc.(c)		1,014,298
	13,779	Fiserv, Inc.(c)		1,443,075
	395,621	Flextronics International Ltd. (Singapore)(c)		3,121,450
	9,673	FLIR Systems, Inc.		275,487
	5,267	Global Payments, Inc.		313,281
	11,970	Google, Inc., Class A(c)		12,336,043
	19,409	Harris Corp.		1,202,582
	764,429	Hewlett-Packard Co.		18,629,135
	148,002	Ingram Micro, Inc., Class A(c)		3,429,206
	20,888	Insight Enterprises, Inc.(c)		440,110
	835,011	Intel Corp.		20,399,319

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

18

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

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	96,174	International Business Machines Corp.	$	17,235,343
	13,145	Intuit, Inc.		938,684
	7,962	Itron, Inc.(c)		339,739
	51,788	Jabil Circuit, Inc.		1,080,298
	62,630	Juniper Networks, Inc.(c)		1,167,423
	13,757	KLA-Tencor Corp.		902,459
	15,123	Lam Research Corp.(c)		820,120
	22,010	Leidos Holdings, Inc.		1,036,451
	15,313	Lender Processing Services, Inc.		528,605
	23,305	Lexmark International, Inc., Class A		828,493
	17,543	Linear Technology Corp.		721,719
	52,239	LSI Corp.(c)		442,987
	78,623	Marvell Technology Group Ltd.		943,476
	2,871	MasterCard, Inc., Class A		2,058,794
	29,767	Maxim Integrated Products, Inc.		884,080
	23,219	Microchip Technology, Inc.(b)		997,488
	262,787	Micron Technology, Inc.(c)		4,646,074
	785,858	Microsoft Corp.		27,780,080
	10,316	Molex, Inc.		398,198
	11,608	Molex, Inc., Class A		446,908
	29,805	Motorola Solutions, Inc.		1,863,409
	20,504	NCR Corp.(c)		749,421
	30,071	NetApp, Inc.(c)		1,167,056
	17,574	Nuance Communications, Inc.(c)		273,451
	66,307	NVIDIA Corp.(c)		1,006,540
	9,524	NXP Semiconductor NV (Netherlands)(c)		401,151
	59,652	ON Semiconductor Corp.(c)		421,143
	232,403	Oracle Corp.		7,785,500
	38,564	Paychex, Inc.		1,629,715
	31,471	Polycom, Inc.(c)		327,298
	94,084	QUALCOMM, Inc.		6,536,015
	5,179	Red Hat, Inc.(c)		224,095
	15,131	Rovi Corp.(c)		253,596
	7,460	Salesforce.com, Inc.(c)		398,066
	27,217	SanDisk Corp.		1,891,581
	60,531	Sanmina Corp.(c)		881,331
	12,297	Science Applications International Corp.(c)		433,469
	44,304	Seagate Technology PLC		2,156,719
	14,717	Skyworks Solutions, Inc.(c)		379,404
	79,523	SunEdison, Inc.(c)		739,564
	71,561	Symantec Corp.		1,627,297
	14,044	SYNNEX Corp.(c)		860,897
	12,219	Synopsys, Inc.(c)		445,383
	59,438	TE Connectivity Ltd. (Switzerland)		3,060,463
	34,956	Tech Data Corp.(c)		1,819,809
	8,051	Teradata Corp.(c)		354,808
	19,503	Teradyne, Inc.(c)		341,107
	114,502	Texas Instruments, Inc.		4,818,244
	24,679	Total System Services, Inc.		736,175
	11,126	Trimble Navigation Ltd.(c)		317,870
	23,505	Unisys Corp.(c)		619,357
	20,176	Visa, Inc., Class A		3,968,014
	36,486	Vishay Intertechnology, Inc.(c)		447,683
	35,540	Western Digital Corp.(c)		2,474,650
	70,830	Western Union Co. (The)		1,205,527
	362,283	Xerox Corp.		3,601,093

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	22,257	Xilinx, Inc.	$	1,010,913
	96,752	Yahoo!, Inc.(c)		3,186,043
				271,455,502
		Materials—3.9%
	28,027	Air Products & Chemicals, Inc.		3,055,223
	5,297	Airgas, Inc.		577,744
	126,734	AK Steel Holding Corp.(b)(c)		557,630
	7,541	Albemarle Corp.		499,139
	451,060	Alcoa, Inc.		4,181,326
	25,288	Allegheny Technologies, Inc.		837,033
	6,862	AptarGroup, Inc.		440,266
	11,862	Ashland, Inc.		1,097,828
	22,170	Avery Dennison Corp.		1,044,650
	19,462	Ball Corp.		951,497
	18,337	Bemis Co., Inc.		731,646
	11,404	Cabot Corp.		531,541
	16,522	Celanese Corp., Series A		925,397
	5,353	CF Industries Holdings, Inc.		1,154,107
	18,738	Chemtura Corp.(c)		459,081
	45,558	Cliffs Natural Resources, Inc.(b)		1,169,930
	16,978	Coeur Mining, Inc.(c)		207,301
	38,022	Commercial Metals Co.		698,084
	3,666	Compass Minerals International, Inc.		273,007
	22,409	Crown Holdings, Inc.(c)		977,032
	5,526	Cytec Industries, Inc.		459,155
	10,572	Domtar Corp.		895,554
	254,208	Dow Chemical Co. (The)		10,033,590
	134,862	E.I. du Pont de Nemours & Co.		8,253,554
	14,995	Eastman Chemical Co.		1,181,456
	16,222	Ecolab, Inc.		1,719,532
	8,670	FMC Corp.		630,829
	193,457	Freeport-McMoRan Copper & Gold, Inc.		7,111,479
	34,295	Graphic Packaging Holding Co.(c)		288,078
	5,233	Greif, Inc., Class A		279,913
	1,419	Greif, Inc., Class B		80,670
	41,118	Huntsman Corp.		954,760
	7,054	International Flavors & Fragrances, Inc.		583,013
	78,507	International Paper Co.		3,502,197
	58,201	LyondellBasell Industries NV, Class A		4,341,795
	4,880	Martin Marietta Materials, Inc.		478,679
	31,680	MeadWestvaco Corp.		1,104,048
	33,555	Monsanto Co.		3,519,248
	32,052	Mosaic Co. (The)		1,469,584
	76,632	Newmont Mining Corp.		2,088,988
	70,363	Nucor Corp.		3,642,693
	14,770	Olin Corp.		332,473
	10,869	OM Group, Inc.(c)		369,546
	44,516	Owens-Illinois, Inc.(c)		1,415,164
	12,089	Packaging Corp. of America		752,903
	16,577	PPG Industries, Inc.		3,026,629
	25,488	Praxair, Inc.		3,178,609
	12,087	Reliance Steel & Aluminum Co.		885,856
	45,390	Resolute Forest Products(c)		725,786
	7,019	Rock-Tenn Co., Class A		751,103
	8,916	Rockwood Holdings, Inc.		563,937

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

19

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

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Materials (continued)
	19,757	RPM International, Inc.	$	764,991
	10,332	Schnitzer Steel Industries, Inc., Class A		300,041
	7,705	Scotts Miracle-Gro Co. (The), Class A		452,438
	37,702	Sealed Air Corp.		1,137,846
	7,645	Sensient Technologies Corp.		398,534
	5,697	Sherwin-Williams Co. (The)		1,071,036
	8,108	Sigma-Aldrich Corp.		700,775
	20,220	Sonoco Products Co.		821,741
	23,281	Southern Copper Corp. (Mexico)		650,704
	53,060	Steel Dynamics, Inc.		953,488
	78,918	United States Steel Corp.(b)		1,964,269
	8,246	Valspar Corp. (The)		576,973
	18,335	Vulcan Materials Co.		981,839
	5,506	W.R. Grace & Co.(c)		504,680
	13,847	Walter Energy, Inc.(b)		220,029
				96,489,667
		Telecommunication Services—4.0%
	1,278,952	AT&T, Inc.		46,298,062
	118,750	CenturyLink, Inc.		4,020,875
	91,641	Cincinnati Bell, Inc.(c)		262,093
	10,187	Crown Castle International Corp.(c)		774,416
	454,185	Frontier Communications Corp.(b)		2,002,956
	57,017	Leap Wireless International, Inc.(c)		917,974
	30,244	Level 3 Communications, Inc.(c)		923,954
	242,744	NII Holdings, Inc.(b)(c)		835,039
	1,058,897	Sprint Corp. (Japan)(c)		7,126,377
	38,883	Telephone & Data Systems, Inc.		1,212,372
	40,061	T-Mobile US, Inc. (Germany)(c)		1,110,892
	13,330	tw telecom, inc.(c)		420,162
	652,590	Verizon Communications, Inc.		32,962,321
	205,399	Windstream Holdings, Inc.(b)		1,756,161
				100,623,654
		Utilities—4.6%
	249,694	AES Corp. (The)		3,518,188
	19,703	AGL Resources, Inc.		942,986
	6,293	ALLETE, Inc.		317,985
	20,722	Alliant Energy Corp.		1,082,103
	75,000	Ameren Corp.		2,713,500
	100,630	American Electric Power Co., Inc.		4,713,509
	24,465	American Water Works Co., Inc.		1,048,815
	13,360	Aqua America, Inc.		336,405
	23,269	Atmos Energy Corp.		1,030,119
	13,467	Avista Corp.		374,248
	8,157	Black Hills Corp.		413,723
	70,720	Calpine Corp.(c)		1,426,422
	92,754	CenterPoint Energy, Inc.		2,281,748
	8,383	Cleco Corp.		388,468
	44,062	CMS Energy Corp.		1,209,943
	62,877	Consolidated Edison, Inc.		3,660,699
	89,705	Dominion Resources, Inc.		5,718,694
	35,764	DTE Energy Co.		2,472,723
	91,391	Duke Energy Corp.(c)		6,555,476
	69,770	Edison International		3,420,823
	56,880	Entergy Corp.		3,681,274
	227,433	Exelon Corp.		6,490,938

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Utilities (continued)
	113,328	FirstEnergy Corp.	$	4,291,731
	33,770	Great Plains Energy, Inc.		791,569
	22,135	Hawaiian Electric Industries, Inc.		588,127
	8,199	IDACORP, Inc.		423,068
	21,981	Integrys Energy Group, Inc.		1,289,845
	3,737	ITC Holdings Corp.		375,905
	37,759	MDU Resources Group, Inc.		1,124,463
	10,083	National Fuel Gas Co.		721,439
	8,236	New Jersey Resources Corp.		379,103
	68,828	NextEra Energy, Inc.		5,833,173
	61,726	NiSource, Inc.		1,945,604
	30,856	Northeast Utilities		1,323,414
	5,615	Northwest Natural Gas Co.		243,859
	7,676	NorthWestern Corp.		351,868
	96,787	NRG Energy, Inc.		2,761,333
	46,089	NV Energy, Inc.		1,094,153
	31,195	OGE Energy Corp.		1,151,096
	35,788	ONEOK, Inc.		2,022,022
	75,998	Pepco Holdings, Inc.		1,465,241
	97,978	PG&E Corp.		4,100,379
	11,966	Piedmont Natural Gas Co., Inc.		408,519
	21,926	Pinnacle West Capital Corp.		1,228,514
	18,529	PNM Resources, Inc.		443,214
	16,906	Portland General Electric Co.		485,202
	106,642	PPL Corp.		3,266,444
	120,647	Public Service Enterprise Group, Inc.		4,041,675
	27,183	Questar Corp.		643,150
	24,386	SCANA Corp.		1,137,119
	35,316	Sempra Energy		3,218,700
	148,625	Southern Co. (The)		6,080,249
	8,974	Southwest Gas Corp.		486,929
	54,052	TECO Energy, Inc.		928,073
	24,778	UGI Corp.		1,025,066
	7,536	UIL Holdings Corp.		290,287
	7,478	UNS Energy Corp.		370,011
	17,961	Vectren Corp.		627,198
	24,698	Westar Energy, Inc.		780,704
	11,262	WGL Holdings, Inc.		506,903
	27,173	Wisconsin Energy Corp.		1,144,255
	98,854	Xcel Energy, Inc.		2,852,927
				116,041,320
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $2,002,503,497)—100.0%		2,499,905,872

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

20

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

October 31, 2013

(Unaudited)

Number of Shares			Value
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—1.0%
	24,795,387	Invesco Liquid Assets Portfolio—Institutional Class (Cost $24,795,387)(e)(f)	$	24,795,387
		Total Investments (Cost $2,027,298,884)—101.0%		2,524,701,259
		Other assets less liabilities—(1.0)%		(24,264,208	)
		Net Assets—100.0%	$	2,500,437,051

Investment Abbreviations:

REIT—Real Estate Investment Trust

Notes to Schedule of Investments:

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

^(b)  All or a portion of this security was out on loan at October 31, 2013.

^(c)  Non-income producing security.

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

^(e)  The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2G.

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

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

21

Portfolio Composition

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

Sector Breakdown (% of the Fund’s Net Assets) as of October 31, 2013 (Unaudited)
Financials	20.4
Consumer Discretionary	19.0
Information Technology	17.4
Industrials	17.2
Health Care	7.3
Energy	6.9
Materials	5.4
Consumer Staples	3.7
Telecommunication Services	1.5
Utilities	1.2
Money Market Fund and Other Assets Less Liabilities	0.0

Schedule of Investments^(a)

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

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—19.0%
	34,050	1-800-FLOWERS.COM, Inc., Class A(b)	$	184,892
	42,824	AH Belo Corp., Class A		344,305
	18,566	Allison Transmission Holdings, Inc.		452,082
	26,011	Ambassadors Group, Inc.		95,981
	14,079	AMC Networks, Inc., Class A(b)		986,797
	90,265	American Apparel, Inc.(b)(c)		120,955
	46,870	American Axle & Manufacturing Holdings, Inc.(b)		872,251
	4,733	American Public Education, Inc.(b)		189,462
	4,304	America’s Car-Mart, Inc.(b)		196,865
	77,578	Arcos Dorados Holdings, Inc., Class A (British Virgin Islands)(c)		934,039
	6,389	Arctic Cat, Inc.(b)		334,784
	33,864	Asbury Automotive Group, Inc.(b)		1,627,165
	6,896	Ascent Capital Group, Inc., Class A(b)		582,160
	15,029	Bally Technologies, Inc.(b)		1,099,221
	12,177	Bassett Furniture Industries, Inc.		170,478
	29,600	Beazer Homes USA, Inc.(b)(c)		537,832
	55,410	bebe Stores, Inc.		334,122
	71,387	Belo Corp., Class A		980,144
	21,534	Big 5 Sporting Goods Corp.		407,208
	1,123	Biglari Holdings, Inc.(b)		489,650
	11,373	BJ’s Restaurants, Inc.(b)		307,753
	13,143	Bloomin’ Brands, Inc.(b)		328,969
	4,661	Blue Nile, Inc.(b)		191,427
	29,493	Blyth, Inc.(c)		407,298
	27,728	Bob Evans Farms, Inc.		1,582,992
	49,241	Bon-Ton Stores, Inc. (The)(c)		563,809

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Discretionary (continued)
	169,796	Boyd Gaming Corp.(b)	$	1,793,046
	12,195	Bravo Brio Restaurant Group, Inc.(b)		182,071
	20,860	Bridgepoint Education, Inc.(b)		408,856
	62,177	Brown Shoe Co., Inc.		1,395,252
	19,174	Buckle, Inc. (The)(c)		938,376
	6,170	Buffalo Wild Wings, Inc.(b)		879,719
	41,306	Build-A-Bear Workshop, Inc.(b)		324,665
	51,569	Burger King Worldwide, Inc.(b)		1,092,231
	23,430	Cabela’s, Inc.(b)		1,389,868
	75,049	Callaway Golf Co.		632,663
	9,831	Capella Education Co.(b)		598,905
	13,952	Carmike Cinemas, Inc.(b)		319,361
	8,084	Carriage Services, Inc.		162,408
	51,497	Carrols Restaurant Group, Inc.(b)		298,683
	20,481	Carter’s, Inc.(b)		1,416,261
	21,100	Cato Corp. (The), Class A		632,367
	3,370	Cavco Industries, Inc.(b)		197,381
	18,215	CEC Entertainment, Inc.		844,265
	147,866	Central European Media Enterprises Ltd., Class A (Czech Republic)(b)(c)		453,949
	30,403	Cheesecake Factory, Inc. (The)		1,436,542
	9,089	Cherokee, Inc.		124,701
	65,874	Chico’s FAS, Inc.		1,129,739
	20,059	Children’s Place Retail Stores, Inc. (The)(b)		1,095,021
	10,816	Choice Hotels International, Inc.		503,917
	33,360	Christopher & Banks Corp.(b)		192,487
	6,009	Churchill Downs, Inc.		516,233
	23,380	Citi Trends, Inc.(b)		343,218

22

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

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

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Discretionary (continued)
	51,331	Clear Channel Outdoor Holdings, Inc., Class A	$	436,313
	81,857	Coldwater Creek, Inc.(b)(c)		81,857
	7,969	Columbia Sportswear Co.		532,887
	11,378	Conn’s, Inc.(b)		687,686
	20,558	Core-Mark Holding Co., Inc.		1,454,067
	449,567	Corinthian Colleges, Inc.(b)(c)		962,073
	14,651	Cracker Barrel Old Country Store, Inc.		1,609,705
	42,963	Crocs, Inc.(b)		523,289
	7,621	CSS Industries, Inc.		197,308
	28,805	CTC Media, Inc.		364,095
	62,311	Cumulus Media, Inc., Class A(b)		372,620
	27,317	Deckers Outdoor Corp.(b)		1,880,229
	9,029	Delta Apparel, Inc.(b)		170,648
	70,644	Denny’s Corp.(b)		448,589
	9,714	Destination Maternity Corp.		303,465
	57,863	Destination XL Group, Inc.(b)		402,148
	52,089	Digital Generation, Inc.(b)(c)		658,926
	10,548	DineEquity, Inc.		865,674
	8,153	Dorman Products, Inc.		396,317
	62,094	DreamWorks Animation SKG, Inc., Class A(b)		2,126,099
	8,397	Drew Industries, Inc.(b)		422,033
	11,680	DSW, Inc., Class A		1,023,986
	21,839	Dunkin’ Brands Group, Inc.		1,041,284
	40,281	E.W. Scripps Co. (The), Class A(b)		798,369
	146,902	Education Management Corp.(b)(c)		2,247,601
	82,829	Emmis Communications Corp., Class A(b)		206,244
	39,781	Entercom Communications Corp., Class A(b)		348,879
	60,784	Entravision Communications Corp., Class A(b)		409,684
	17,631	Ethan Allen Interiors, Inc.		469,690
	60,554	Express, Inc.(b)		1,405,458
	100,819	Federal-Mogul Corp.(b)		2,065,781
	10,636	Fiesta Restaurant Group, Inc.(b)		450,860
	46,904	Fifth & Pacific Cos., Inc.(b)		1,242,487
	39,938	Finish Line, Inc. (The), Class A		1,000,048
	7,566	Flexsteel Industries, Inc.		207,762
	7,166	Francesca’s Holdings Corp.(b)		128,916
	45,916	Fred’s, Inc., Class A		743,839
	23,711	Fuel Systems Solutions, Inc.(b)		425,850
	20,087	Genesco, Inc.(b)		1,368,126
	12,865	G-III Apparel Group Ltd.(b)		729,703
	10,373	Gordmans Stores, Inc.(b)		102,693
	8,750	Grand Canyon Education, Inc.(b)		413,613
	63,616	Gray Television, Inc.(b)		537,555
	69,415	Harte-Hanks, Inc.		553,238
	685	Haverty Furniture Cos., Inc., Class A(b)		19,180
	14,248	Haverty Furniture Cos., Inc.		396,237
	23,562	Helen of Troy Ltd.(b)		1,100,817
	39,895	hhgregg, Inc.(b)(c)		618,771
	8,473	Hibbett Sports, Inc.(b)(c)		494,230
	39,807	Hillenbrand, Inc.		1,123,354
	11,101	Hooker Furniture Corp.		175,396
	98,930	Hovnanian Enterprises, Inc., Class A(b)(c)		500,586
	23,493	HSN, Inc.		1,231,033
	31,774	Iconix Brand Group, Inc.(b)		1,146,724
	18,521	International Speedway Corp., Class A		605,822
	18,023	Interval Leisure Group, Inc.		437,418

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Discretionary (continued)
	12,528	iRobot Corp.(b)	$	424,323
	56,027	Isle of Capri Casinos, Inc.(b)		454,379
	33,289	JAKKS Pacific, Inc.(c)		214,381
	4,822	Johnson Outdoors, Inc., Class A(b)		132,267
	19,925	Jos. A. Bank Clothiers, Inc.(b)		956,002
	51,474	Journal Communications, Inc., Class A(b)		429,808
	13,473	K12, Inc.(b)		246,286
	52,105	KB Home(c)		884,222
	109,775	Kingold Jewelry, Inc.(b)(c)		221,746
	15,343	Kirkland’s, Inc.(b)		272,338
	17,356	Krispy Kreme Doughnuts, Inc.(b)		421,057
	31,286	La-Z-Boy, Inc.(b)		722,081
	26,279	LeapFrog Enterprises, Inc.(b)(c)		224,948
	122,128	Lee Enterprises, Inc.(b)(c)		335,852
	17,665	Libbey, Inc.(b)		377,148
	26,843	Life Time Fitness, Inc.(b)		1,219,209
	12,850	Lifetime Brands, Inc.		201,231
	18,038	LIN Media LLC, Class A(b)		443,194
	66,909	Lincoln Educational Services Corp.		319,825
	33,934	Lions Gate Entertainment Corp.(b)		1,173,438
	17,255	Lithia Motors, Inc., Class A		1,084,477
	5,707	Loral Space & Communications, Inc.(b)		407,309
	17,743	Luby’s, Inc.(b)		135,911
	7,999	Lululemon Athletica, Inc. (Canada)(b)		552,331
	6,128	Lumber Liquidators Holdings, Inc.(b)		699,756
	9,471	M/I Homes, Inc.(b)		193,871
	8,912	Mac-Gray Corp.		187,865
	18,677	Madison Square Garden Co. (The), Class A(b)		1,130,332
	25,851	Marcus Corp.		371,220
	26,647	MarineMax, Inc.(b)		392,510
	20,254	Marriott Vacations Worldwide Corp.(b)		1,014,320
	18,927	Matthews International Corp., Class A		768,436
	4,762	Mattress Firm Holding Corp.(b)(c)		143,146
	345,770	McClatchy Co. (The), Class A(b)(c)		975,071
	21,200	MDC Holdings, Inc.		618,828
	57,748	Media General, Inc., Class A(b)(c)		841,966
	41,214	Men’s Wearhouse, Inc. (The)		1,743,352
	27,103	Meredith Corp.		1,390,384
	16,572	Meritage Homes Corp.(b)		752,203
	7,297	Michael Kors Holdings Ltd.(b)		561,504
	67,043	Modine Manufacturing Co.(b)		893,013
	11,033	Monro Muffler Brake, Inc.		507,518
	26,716	Morgans Hotel Group Co.(b)		191,287
	4,796	Morningstar, Inc.		385,071
	23,404	Motorcar Parts of America, Inc.(b)		320,167
	6,454	Movado Group, Inc.		300,950
	46,987	MTR Gaming Group, Inc.(b)		244,332
	9,062	Multimedia Games Holding Co., Inc.(b)		294,606
	15,669	NACCO Industries, Inc., Class A		892,663
	43,646	National CineMedia, Inc.		764,678
	39,445	New York & Co., Inc.(b)		201,958
	8,064	Nexstar Broadcasting Group, Inc., Class A(b)		357,961
	42,528	Nutrisystem, Inc.		799,526
	60,458	Orbitz Worldwide, Inc.(b)		558,632
	47,394	Orient-Express Hotels Ltd., Class A(b)		630,814
	18,369	Outerwall, Inc.(b)(c)		1,193,618

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

23

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

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Discretionary (continued)
	12,166	Overstock.com, Inc.(b)	$	285,049
	8,664	Oxford Industries, Inc.		621,815
	183,520	Pacific Sunwear of California, Inc.(b)		493,669
	9,833	Papa John’s International, Inc.(b)		744,063
	74,938	PEP Boys-Manny Moe & Jack (The)(b)		969,698
	28,024	Perry Ellis International, Inc.(b)		532,736
	34,863	Pier 1 Imports, Inc.		727,939
	64,047	Pinnacle Entertainment, Inc.(b)		1,498,700
	19,480	Pool Corp.		1,059,322
	148,129	Quiksilver, Inc.(b)		1,232,433
	90,688	Radio One, Inc., Class D(b)(c)		272,064
	22,155	Reading International, Inc., Class A(b)		146,666
	24,791	Red Lion Hotels Corp.(b)		149,242
	10,343	Red Robin Gourmet Burgers, Inc.(b)		787,930
	12,504	Rocky Brands, Inc.		189,561
	100,363	Ruby Tuesday, Inc.(b)		595,153
	24,952	Ruth’s Hospitality Group, Inc.(b)		304,165
	18,331	Ryland Group, Inc. (The)		736,906
	2,797	Saga Communications, Inc., Class A		133,165
	34,557	Scholastic Corp.		991,440
	70,918	Scientific Games Corp., Class A(b)		1,296,381
	10,759	Sears Hometown and Outlet Stores, Inc.(b)		299,746
	19,097	Select Comfort Corp.(b)		349,857
	17,166	SHFL entertainment, Inc.(b)		397,908
	13,584	Shoe Carnival, Inc.		353,048
	10,722	Shutterfly, Inc.(b)		526,879
	40,176	Sinclair Broadcast Group, Inc., Class A		1,288,043
	288,606	Sirius XM Radio, Inc.		1,088,045
	31,423	Six Flags Entertainment Corp.		1,181,819
	41,387	Skechers U.S.A., Inc., Class A(b)		1,206,017
	21,928	Smith & Wesson Holding Corp.(b)(c)		236,384
	2,625	SodaStream International Ltd. (Israel)(b)(c)		140,359
	47,187	Sonic Corp.(b)		910,709
	23,444	Sotheby’s		1,216,744
	53,929	Spartan Motors, Inc.		366,178
	19,139	Speedway Motorsports, Inc.		349,478
	25,504	Stage Stores, Inc.		526,658
	14,456	Standard Motor Products, Inc.		522,729
	23,355	Standard Pacific Corp.(b)		185,205
	34,756	Stein Mart, Inc.(b)		513,346
	8,259	Steiner Leisure Ltd.(b)		462,669
	21,140	Steven Madden Ltd.(b)		775,415
	51,787	Stewart Enterprises, Inc., Class A		684,106
	53,522	Stoneridge, Inc.(b)		682,941
	14,182	Strayer Education, Inc.		560,614
	3,715	Sturm Ruger & Co., Inc.(c)		242,998
	21,895	Superior Industries International, Inc.		410,531
	20,970	Systemax, Inc.(b)		199,215
	17,922	Tempur-Sealy International, Inc.(b)		687,309
	24,056	Texas Roadhouse, Inc.		659,616
	27,061	Thor Industries, Inc.		1,569,809
	21,550	Tower International, Inc.(b)		457,291
	34,276	Town Sports International Holdings, Inc.(b)		442,846
	11,302	TripAdvisor, Inc.(b)		934,788
	36,259	Tuesday Morning Corp.(b)		513,065
	10,880	Ulta Salon, Cosmetics & Fragrance, Inc.		1,401,888

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Discretionary (continued)
	13,986	Under Armour, Inc., Class A(b)	$	1,134,964
	23,686	Unifi, Inc.(b)		577,702
	13,448	Universal Electronics, Inc.(b)		523,262
	13,995	Universal Technical Institute, Inc.		185,994
	16,081	Vail Resorts, Inc.		1,132,906
	70,121	ValueVision Media, Inc., Class A(b)		374,446
	5,745	Vera Bradley, Inc.(b)(c)		127,252
	8,605	Vitamin Shoppe, Inc.(b)		403,661
	39,059	VOXX International Corp.(b)		605,805
	18,375	Weight Watchers International, Inc. (Luxembourg)(c)		590,021
	16,919	West Marine, Inc.(b)		206,581
	121,245	Wet Seal, Inc. (The), Class A(b)		401,321
	5,754	Weyco Group, Inc.		165,312
	12,839	Winnebago Industries, Inc.(b)		380,805
	22,627	Wolverine World Wide, Inc.		1,306,483
	48,094	World Wrestling Entertainment, Inc., Class A(c)		622,817
	188,102	Zale Corp.(b)		2,940,034
	9,765	Zumiez, Inc.(b)		289,435
				154,548,560
		Consumer Staples—3.7%
	45,796	Adecoagro S.A. (Argentina)(b)		366,368
	184,492	Alliance One International, Inc.(b)		547,941
	22,406	B&G Foods, Inc.		758,443
	1,294	Boston Beer Co., Inc. (The), Class A(b)		297,089
	27,749	Boulder Brands, Inc.(b)		454,806
	7,717	Calavo Growers, Inc.		229,118
	11,238	Cal-Maine Foods, Inc.		570,104
	26,146	Central Garden & Pet Co.(b)		198,448
	85,509	Central Garden & Pet Co., Class A(b)		629,346
	4,492	Coca-Cola Bottling Co. Consolidated		284,433
	64,698	Darling International, Inc.(b)		1,505,522
	27,346	Diamond Foods, Inc.(c)		667,516
	94,348	Dole Food Co., Inc.(b)		1,278,415
	16,896	Elizabeth Arden, Inc.(b)		611,466
	10,048	Fresh Market, Inc. (The)(b)		511,544
	14,146	Hain Celestial Group, Inc. (The)(b)		1,177,372
	46,006	Harbinger Group, Inc.(b)		501,005
	15,757	Ingles Markets, Inc., Class A		406,688
	5,416	Inter Parfums, Inc.		190,427
	5,651	J & J Snack Foods Corp.		483,556
	13,342	John B. Sanfilippo & Son, Inc.(b)		327,946
	10,114	Lancaster Colony Corp.		839,361
	5,963	Medifast, Inc.(b)		138,998
	12,090	National Beverage Corp.(b)		221,368
	23,492	Nu Skin Enterprises, Inc., Class A		2,746,920
	10,315	Nutraceutical International Corp.(b)		248,076
	25,951	Omega Protein Corp.(b)		242,901
	62,367	Pilgrim’s Pride Corp. (Brazil)(b)		883,740
	20,711	Prestige Brands Holdings, Inc.(b)		646,805
	6,189	PriceSmart, Inc.		704,246
	8,554	Revlon, Inc., Class A(b)		203,157
	184,679	Roundy’s, Inc.(b)		1,717,515
	15,347	Sanderson Farms, Inc.		970,084
	201	Seaboard Corp.(b)		548,730

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

24

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

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Staples (continued)
	18,188	Seneca Foods Corp., Class A(b)	$	533,272
	3,685	Seneca Foods Corp., Class B(b)		108,707
	30,606	Snyders-Lance, Inc.		917,874
	55,973	Spartan Stores, Inc.		1,317,045
	17,216	Spectrum Brands Holdings, Inc.(b)		1,134,879
	22,284	Susser Holdings Corp.(b)		1,222,055
	9,831	Tootsie Roll Industries, Inc.(c)		314,592
	3,744	USANA Health Sciences, Inc.(b)		255,453
	61,427	Vector Group Ltd.(b)(c)		993,275
	8,839	Village Super Market, Inc., Class A		324,038
	6,391	WD-40 Co.		463,284
	11,359	Weis Markets, Inc.		581,240
	11,434	WhiteWave Foods Co., Class A(b)		228,794
				30,503,962
		Energy—6.9%
	54,984	Abraxas Petroleum Corp.(b)(c)		158,904
	7,130	Adams Resources & Energy, Inc.		369,120
	17,696	Alon USA Energy, Inc. (Israel)		213,768
	10,904	Approach Resources, Inc.(b)		306,948
	50,527	Basic Energy Services, Inc.(b)		741,231
	19,263	Berry Petroleum Co., Class A		919,808
	3,946	Bonanza Creek Energy, Inc.(b)		199,431
	18,062	Bristow Group, Inc.		1,453,449
	15,898	C&J Energy Services, Inc.(b)		366,290
	375,849	Cal Dive International, Inc.(b)(c)		740,423
	52,819	Callon Petroleum Co.(b)		360,754
	4,110	CARBO Ceramics, Inc.(c)		515,147
	20,167	Carrizo Oil & Gas, Inc.(b)		884,121
	8,414	Clayton Williams Energy, Inc.(b)		654,862
	19,592	Clean Energy Fuels Corp.(b)(c)		223,153
	24,969	Cobalt International Energy, Inc.(b)		579,531
	64,286	Comstock Resources, Inc.(b)		1,099,933
	8,412	Contango Oil & Gas Co.(b)		360,454
	5,148	Continental Resources, Inc.(b)		586,357
	6,328	Core Laboratories NV		1,184,728
	52,184	Crosstex Energy, Inc.		1,601,527
	6,672	CVR Energy, Inc.(b)		265,012
	7,541	Dawson Geophysical Co.(b)		220,499
	10,518	Delek US Holdings, Inc. (Israel)		268,735
	74,592	DHT Holdings, Inc.		382,657
	10,570	Dril-Quip, Inc.(b)		1,241,129
	69,923	Endeavour International Corp.(b)(c)		415,343
	28,935	Energy XXI Bermuda Ltd.		840,851
	23,284	EPL Oil & Gas, Inc.(b)		742,294
	13,049	Forum Energy Technologies, Inc.(b)		381,814
	109,944	Gastar Exploration Ltd.(b)		474,958
	1,836	Geospace Technologies Corp.(b)		178,863
	77,647	Global Geophysical Services, Inc.(b)		185,576
	16,065	Goodrich Petroleum Corp.(b)		375,760
	156,692	Gran Tierra Energy, Inc. (Canada)(b)		1,189,292
	72,311	Green Plains Renewable Energy, Inc.(b)		1,166,376
	9,811	Gulf Island Fabrication, Inc.		247,433
	5,594	Gulfmark Offshore, Inc., Class A(b)		278,469
	10,117	Gulfport Energy Corp.(b)		593,767
	32,080	Harvest Natural Resources, Inc.(b)(c)		160,400

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Energy (continued)
	151,345	Hercules Offshore, Inc.(b)	$	1,029,146
	24,123	Hornbeck Offshore Services, Inc.(b)		1,333,278
	7,612	InterOil Corp.(b)(c)		528,653
	72,980	ION Geophysical Corp.(b)		338,627
	228,032	James River Coal Co.(b)(c)		437,821
	65,167	Knightsbridge Tankers Ltd. (Bermuda)(c)		536,976
	51,033	Kodiak Oil & Gas Corp.(b)		661,898
	11,894	Kosmos Energy Ltd.(b)		126,790
	9,536	Laredo Petroleum Holdings, Inc.(b)		302,959
	54,414	Magnum Hunter Resources Corp.(b)(c)		387,972
	21,661	Matrix Service Co.(b)		450,332
	15,695	Midstates Petroleum Co., Inc.(b)(c)		88,520
	10,070	Mitcham Industries, Inc.(b)		167,565
	8,781	Natural Gas Services Group, Inc.(b)		245,780
	45,590	Navios Maritime Acquisition Corp.(b)		181,904
	73,400	Newpark Resources, Inc.(b)		935,850
	99,737	Nordic American Tankers Ltd.(c)		813,854
	20,763	Northern Oil and Gas, Inc.(b)		341,136
	8,611	Oasis Petroleum, Inc.(b)		458,536
	30,421	Ocean Rig UDW, Inc. (Greece)(b)		533,280
	37,959	Pacific Drilling SA (Monaco)(b)		431,594
	30,529	Pacific Ethanol, Inc.(b)(c)		111,736
	185,605	Parker Drilling Co.(b)		1,336,356
	14,466	PBF Energy, Inc., Class A(b)(c)		380,890
	16,316	PDC Energy, Inc.(b)		1,106,388
	198,840	Penn Virginia Corp.		1,692,128
	105,840	PetroQuest Energy, Inc.(b)		499,565
	1,225	PHI, Inc.(b)		46,085
	13,616	PHI, Inc.(b)		542,189
	81,560	Pioneer Energy Services Corp.(b)		685,104
	617,398	Quicksilver Resources, Inc.(b)(c)		1,321,232
	23,421	Renewable Energy Group, Inc.(b)		255,523
	24,152	Resolute Energy Corp.(b)		226,546
	6,734	REX American Resources Corp.(b)		194,209
	14,181	Rex Energy Corp.(b)		304,892
	16,751	Rosetta Resources, Inc.(b)		1,004,055
	30,793	RPC, Inc.(c)		564,744
	25,321	SemGroup Corp., Class A		1,529,135
	62,966	Ship Finance International Ltd. (Norway)		1,042,087
	18,526	StealthGas, Inc.(b)		213,049
	51,949	Stone Energy Corp.(b)		1,810,942
	88,108	Swift Energy Co.(b)		1,208,842
	248,352	Teekay Tankers Ltd., Class A(c)		648,199
	37,548	Tesco Corp.(b)		645,075
	96,389	TETRA Technologies, Inc.(b)		1,250,165
	209,898	Tsakos Energy Navigation Ltd.		1,051,589
	40,149	USEC, Inc.(b)(c)		323,601
	37,207	VAALCO Energy, Inc.(b)		196,081
	170,201	Vantage Drilling Co.(b)		302,958
	36,303	W&T Offshore, Inc.		693,024
	72,672	Warren Resources, Inc.(b)		227,463
	22,414	Westmoreland Coal Co.(b)		318,503
	104,549	Willbros Group, Inc.(b)		1,020,398
				56,214,391

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

25

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

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials—20.4%
	13,517	1st Source Corp.	$	424,163
	18,858	1st United Bancorp, Inc.		144,075
	20,262	Acadia Realty Trust REIT		540,388
	6,613	Agree Realty Corp. REIT		208,772
	701	Alexander’s, Inc. REIT		225,554
	3,896	Altisource Portfolio Solutions SA(b)		612,763
	14,107	American Assets Trust, Inc. REIT		469,622
	80,374	American Equity Investment Life Holding Co.		1,674,994
	7,108	American National Bankshares, Inc.		163,058
	14,538	American National Insurance Co.		1,469,356
	14,292	Ameris Bancorp(b)		261,544
	11,724	AMERISAFE, Inc.		451,374
	12,946	AmTrust Financial Services, Inc.(b)(c)		496,609
	15,503	Apollo Commercial Real Estate Finance, Inc. REIT		249,753
	26,626	Arbor Realty Trust, Inc. REIT		177,063
	35,042	Argo Group International Holdings Ltd.		1,471,063
	7,584	Arlington Asset Investment Corp., Class A		187,097
	35,774	ARMOUR Residential REIT, Inc. REIT		147,389
	7,924	Arrow Financial Corp.(b)(c)		204,518
	75,371	Ashford Hospitality Trust, Inc. REIT		984,345
	20,018	Associated Estates Realty Corp. REIT		307,076
	12,317	ASTA Funding, Inc.		105,680
	7,552	AV Homes, Inc.(b)		144,243
	936	Baldwin & Lyons, Inc., Class A(b)		24,373
	8,079	Baldwin & Lyons, Inc., Class B(b)		220,799
	3,932	BancFirst Corp.		218,501
	18,485	Bancorp, Inc. (The)(b)		298,902
	45,089	Bank Mutual Corp.		286,766
	3,516	Bank of Marin Bancorp		149,606
	7,418	Bank of the Ozarks, Inc.		367,043
	17,433	BankFinancial Corp.		161,953
	17,802	BankUnited, Inc.		547,768
	10,670	Banner Corp.		408,234
	3,153	Bar Harbor Bankshares		118,994
	29,515	BBCN Bancorp, Inc.(b)		437,707
	14,278	Beneficial Mutual Bancorp, Inc.(b)		139,211
	14,621	Berkshire Hills Bancorp, Inc.		370,935
	153,451	BGC Partners, Inc., Class A		816,359
	11,298	Blackstone Mortgage Trust, Inc., Class A REIT(b)		276,688
	3,651	BofI Holding, Inc.(b)		220,593
	13,684	BOK Financial Corp.		837,871
	51,867	Boston Private Financial Holdings, Inc.		590,765
	5,968	Bridge Bancorp, Inc.		137,801
	63,810	Brookline Bancorp, Inc.		565,995
	6,666	Bryn Mawr Bank Corp.		185,715
	3,182	C&F Financial Corp.		171,542
	42,108	Calamos Asset Management, Inc., Class A		413,501
	6,899	Camden National Corp.		278,375
	14,085	Campus Crest Communities, Inc. REIT		140,991
	17,339	Capital City Bank Group, Inc.(b)		213,270
	69,678	CapLease, Inc. REIT		592,263
	11,243	Cardinal Financial Corp.		185,510
	17,307	Cash America International, Inc.		682,761
	41,669	Cathay General Bancorp		1,026,307

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	21,967	CBOE Holdings, Inc.	$	1,065,400
	83,608	Cedar Realty Trust, Inc. REIT		477,402
	13,627	Centerstate Banks, Inc.		134,362
	22,798	Central Pacific Financial Corp.(b)		419,939
	11,333	Charter Financial Corp.		122,850
	8,374	Chatham Lodging Trust REIT		157,934
	24,655	Chemical Financial Corp.		722,145
	17,338	Chesapeake Lodging Trust REIT		408,657
	9,148	Citizens & Northern Corp.		180,764
	18,001	Citizens, Inc., Class A(b)		151,208
	11,356	City Holding Co.		516,698
	26,078	CNA Financial Corp.		1,058,506
	8,904	CNB Financial Corp.		178,169
	21,921	CoBiz Financial, Inc.		237,843
	9,611	Cohen & Steers, Inc.(c)		368,678
	10,279	Colony Financial, Inc. REIT		207,944
	25,306	Columbia Banking System, Inc.		650,111
	24,922	Community Bank System, Inc.		904,918
	10,711	Community Trust Bancorp, Inc.		456,182
	13,983	Consumer Portfolio Services, Inc.(b)		93,966
	5,775	Coresite Realty Corp. REIT		187,341
	66,050	Cousins Properties, Inc. REIT		748,347
	72,180	Cowen Group, Inc., Class A(b)		286,555
	18,490	Crawford & Co., Class A(b)		154,022
	22,262	Crawford & Co., Class B(b)		244,659
	1,411	Credit Acceptance Corp.(b)		166,921
	51,701	CubeSmart REIT		944,577
	61,793	CVB Financial Corp.		898,470
	37,831	DFC Global Corp.(b)		457,755
	2,119	Diamond Hill Investment Group		233,662
	25,880	Dime Community Bancshares, Inc.		423,397
	1,096	Donegal Group, Inc., Class B		23,016
	10,466	Donegal Group, Inc., Class A		165,886
	24,557	Doral Financial Corp. (Puerto Rico)(b)		415,013
	23,042	DuPont Fabros Technology, Inc. REIT		572,594
	28,064	Dynex Capital, Inc. REIT		242,473
	7,399	Eagle Bancorp, Inc.(b)		195,704
	13,785	EastGroup Properties, Inc. REIT		877,553
	41,313	Education Realty Trust, Inc. REIT		377,601
	10,794	eHealth, Inc.(b)		460,040
	25,071	Employers Holdings, Inc.		753,885
	13,687	Encore Capital Group, Inc.(b)		668,610
	3,150	Enstar Group Ltd.(b)		428,180
	12,520	Enterprise Financial Services Corp.		225,736
	20,664	Equity Lifestyle Properties, Inc. REIT		785,025
	30,027	Equity One, Inc. REIT		723,951
	36,117	Everbank Financial Corp.		546,089
	6,778	Evercore Partners, Inc., Class A		342,086
	12,170	Excel Trust, Inc. REIT		147,014
	26,338	Extra Space Storage, Inc. REIT		1,211,285
	34,229	EZCORP, Inc., Class A(b)		538,422
	8,001	Farmers Capital Bank Corp.(b)		164,341
	13,232	FBL Financial Group, Inc., Class A		592,000
	8,489	FBR & Co.(b)		224,959
	4,412	Federal Agricultural Mortgage Corp., Class C		157,464
	123,582	FelCor Lodging Trust, Inc. REIT(b)		830,471

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

26

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

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	4,533	Financial Engines, Inc.	$	253,259
	8,347	Financial Institutions, Inc.		197,573
	15,446	First Bancorp		231,381
	9,130	First Bancorp, Inc.		158,953
	138,278	First BanCorp.(b)		767,443
	89,837	First Busey Corp.		464,457
	8,354	First Cash Financial Services, Inc.(b)		505,333
	3,686	First Citizens BancShares, Inc., Class A		780,437
	91,316	First Commonwealth Financial Corp.		793,536
	18,666	First Community Bancshares, Inc.		311,536
	8,313	First Connecticut Bancorp, Inc.		122,035
	8,956	First Defiance Financial Corp.		231,244
	45,495	First Financial Bancorp		706,082
	12,724	First Financial Bankshares, Inc.(c)		782,653
	8,937	First Financial Corp.		308,684
	6,812	First Financial Holdings, Inc.		408,243
	15,349	First Financial Northwest, Inc.		166,383
	41,721	First Industrial Realty Trust, Inc. REIT		753,898
	15,682	First Interstate BancSystem, Inc.		393,775
	24,686	First Merchants Corp.		464,097
	68,797	First Midwest Bancorp, Inc.		1,144,094
	4,296	First of Long Island Corp. (The)		169,048
	42,598	First Potomac Realty Trust REIT		523,529
	18,124	Flagstar Bancorp, Inc.(b)		293,790
	26,054	Flushing Financial Corp.		523,425
	46,826	Forest City Enterprises, Inc., Class A(b)		948,695
	1,233	Forest City Enterprises, Inc., Class B(b)		24,907
	20,129	Forestar Group, Inc.(b)		449,481
	8,330	Franklin Financial Corp.		157,187
	51,854	Franklin Street Properties Corp. REIT		684,473
	39,098	FXCM, Inc., Class A		640,816
	2,452	GAMCO Investors, Inc., Class A		175,343
	8,189	German American Bancorp, Inc.		222,577
	18,059	Getty Realty Corp. REIT		346,372
	110,601	GFI Group, Inc.		383,785
	52,847	Glacier Bancorp, Inc.		1,460,163
	9,415	Gladstone Commercial Corp. REIT		177,944
	61,496	Glimcher Realty Trust REIT		630,334
	11,691	Global Indemnity PLC(b)		287,949
	24,199	Government Properties Income Trust REIT		591,666
	162,332	Gramercy Property Trust, Inc. REIT(b)		741,857
	9,986	Great Southern Bancorp, Inc.		280,407
	18,320	Green Dot Corp., Class A(b)		393,147
	9,350	Greenhill & Co., Inc.		479,655
	19,395	Greenlight Capital Re Ltd., Class A(b)		597,172
	15,598	Guaranty Bancorp		210,573
	20,477	Hallmark Financial Services, Inc.(b)		174,259
	17,348	Hanmi Financial Corp.(b)		303,243
	17,168	Healthcare Trust of America, Inc., Class A REIT		199,492
	13,483	Heartland Financial USA, Inc.		357,165
	10,754	Heritage Financial Corp.		173,462
	92,302	Hersha Hospitality Trust REIT		523,352
	9,036	HFF, Inc., Class A		221,834
	21,613	Hilltop Holdings, Inc.(b)		374,769
	13,288	Home BancShares, Inc.		450,197

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	9,852	HomeTrust Bancshares, Inc.(b)	$	159,110
	45,678	Horace Mann Educators Corp.		1,265,281
	14,827	Howard Hughes Corp. (The)(b)		1,735,500
	9,129	Hudson Pacific Properties, Inc. REIT		188,879
	18,533	Hudson Valley Holding Corp.		342,675
	16,799	IBERIABANK Corp.		981,566
	11,185	ICG Group, Inc.(b)		182,427
	30,283	Impac Mortgage Holdings, Inc. REIT(b)(c)		205,924
	12,979	Independent Bank Corp.		465,687
	24,769	Independent Bank Corp./Mi(b)		240,755
	12,935	Infinity Property & Casualty Corp.		887,082
	66,596	Inland Real Estate Corp. REIT		711,911
	44,291	International Bancshares Corp.		1,012,049
	26,508	Intervest Bancshares Corp., Class A(b)		193,243
	11,495	INTL FCStone, Inc.(b)		235,188
	69,316	Investment Technology Group, Inc.(b)		1,110,442
	20,744	Investors Bancorp, Inc.		491,840
	75,444	Investors Real Estate Trust REIT		650,327
	4,822	Kansas City Life Insurance Co.		221,330
	7,307	Kennedy-Wilson Holdings, Inc.		146,432
	55,524	Kite Realty Group Trust REIT		355,354
	21,648	Lakeland Bancorp, Inc.		246,787
	11,947	Lakeland Financial Corp.		425,194
	33,385	LPL Financial Holdings, Inc.		1,360,105
	11,542	LTC Properties, Inc. REIT		455,332
	50,468	Maiden Holdings Ltd.		552,625
	18,605	MainSource Financial Group, Inc.		301,773
	12,003	Manning & Napier, Inc., Class A		199,250
	5,770	MarketAxess Holdings, Inc.		376,377
	32,764	MB Financial, Inc.		973,091
	55,163	MBIA, Inc.(b)		627,203
	73,566	Meadowbrook Insurance Group, Inc.		488,478
	50,837	Medical Properties Trust, Inc. REIT		662,914
	7,612	Mercantile Bank Corp.		166,246
	9,943	Metro Bancorp, Inc.(b)		212,184
	322,599	MGIC Investment Corp.(b)		2,625,956
	5,542	MidWestOne Financial Group, Inc.		146,420
	16,770	Monmouth Real Estate Investment Corp., Class A REIT		154,619
	39,643	Montpelier Re Holdings Ltd.		1,094,543
	4,480	National Bankshares, Inc.		157,472
	5,974	National Health Investors, Inc. REIT		373,494
	3,693	National Interstate Corp.		96,498
	83,468	National Penn Bancshares, Inc.		865,563
	2,784	National Western Life Insurance Co., Class A		579,072
	10,889	Navigators Group, Inc. (The)(b)		612,397
	30,690	NBT Bancorp, Inc.		747,915
	14,501	Nelnet, Inc., Class A		618,178
	61,186	New Residential Investment Corp. REIT		404,439
	61,576	Newcastle Investment Corp. REIT		353,446
	22,267	NewStar Financial, Inc.(b)		387,668
	8,154	Nicholas Financial, Inc.		130,872
	5,618	Northrim Bancorp, Inc.		141,012
	108,515	NorthStar Realty Finance Corp. REIT		1,012,445
	77,406	Northwest Bancshares, Inc.		1,082,910
	9,321	OceanFirst Financial Corp.		163,956

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

27

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

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	27,782	Ocwen Financial Corp.(b)	$	1,562,182
	27,587	OFG Bancorp		408,563
	77,773	Old National Bancorp		1,130,819
	41,744	OMEGA Healthcare Investors, Inc. REIT(c)		1,387,571
	5,271	OmniAmerican Bancorp, Inc.(b)		115,540
	8,293	One Liberty Properties, Inc. REIT		175,314
	52,420	OneBeacon Insurance Group Ltd., Class A		836,623
	22,301	Oppenheimer Holdings, Inc., Class A		442,229
	23,655	Oritani Financial Corp.		383,684
	7,933	Orrstown Financial Services, Inc.(b)		132,719
	12,679	Pacific Continental Corp.		174,717
	19,936	PacWest Bancorp(c)		758,565
	13,601	Park National Corp.		1,077,471
	15,317	Parkway Properties, Inc. REIT		277,391
	24,115	Pebblebrook Hotel Trust REIT		728,273
	3,001	Penns Woods Bancorp, Inc.		153,651
	50,758	Pennsylvania Real Estate Investment Trust REIT		920,243
	20,725	PennyMac Mortgage Investment Trust REIT		478,126
	9,168	Peoples Bancorp, Inc.		205,547
	29,806	Phoenix Cos., Inc. (The)(b)		1,149,617
	12,981	PICO Holdings, Inc.(b)		304,794
	22,633	Pinnacle Financial Partners, Inc.(b)		701,623
	14,871	Piper Jaffray Cos., Inc.(b)		533,720
	11,989	Portfolio Recovery Associates, Inc.(b)		712,746
	21,864	Post Properties, Inc. REIT		1,000,059
	22,798	Potlatch Corp. REIT		930,842
	42,556	PrivateBancorp, Inc.		1,036,664
	25,061	Prosperity Bancshares, Inc.		1,565,059
	7,783	Provident Financial Holdings, Inc.		117,990
	51,983	Provident Financial Services, Inc.		974,161
	36,833	Provident New York Bancorp(b)		431,683
	8,846	PS Business Parks, Inc. REIT		720,861
	82,389	Radian Group, Inc.		1,200,408
	117,093	RAIT Financial Trust REIT		884,052
	28,067	Ramco-Gershenson Properties Trust REIT		456,369
	11,069	Realogy Holdings Corp.(b)		455,379
	20,744	Renasant Corp.		594,938
	19,675	Republic Bancorp, Inc., Class A		452,919
	15,782	Resource America, Inc., Class A		136,199
	87,957	Resource Capital Corp. REIT		540,936
	19,892	Retail Opportunity Investments Corp. REIT		294,402
	64,340	Retail Properties of America, Inc., Class A REIT		920,705
	17,278	RLI Corp.		1,632,425
	16,150	Rockville Financial, Inc.		212,373
	7,061	Rouse Properties, Inc. REIT(b)(c)		142,773
	23,771	Ryman Hospitality Properties, Inc. REIT(b)(c)		877,388
	29,190	S&T Bancorp, Inc.		715,739
	8,640	S.Y. Bancorp, Inc.		259,286
	28,434	Sabra Health Care REIT, Inc. REIT		764,875
	11,528	Safeguard Scientifics, Inc.(b)		201,164
	16,303	Safety Insurance Group, Inc.		891,611
	19,316	Sandy Spring Bancorp, Inc.		473,049
	7,053	Saul Centers, Inc. REIT		331,491
	60,121	Seacoast Banking Corp. of Florida(b)		137,076

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	6,681	Select Income REIT(b)	$	184,062
	11,481	Sierra Bancorp		217,335
	13,594	Simmons First National Corp., Class A		445,068
	16,199	Southside Bancshares, Inc.(b)		442,233
	16,707	Southwest Bancorp, Inc.(b)		267,479
	14,131	Sovran Self Storage, Inc. REIT		1,080,880
	14,928	St. Joe Co. (The)(b)(c)		278,706
	5,181	STAG Industrial, Inc. REIT		108,335
	19,854	State Auto Financial Corp.		377,226
	24,351	State Bank Financial Corp.		415,428
	20,105	StellarOne Corp.		468,044
	18,086	Sterling Financial Corp.		523,771
	16,907	Stewart Information Services Corp.		529,527
	30,641	Stifel Financial Corp.(b)		1,254,749
	63,844	Strategic Hotels & Resorts, Inc. REIT(b)		555,443
	12,558	Suffolk Bancorp(b)		245,509
	24,895	Summit Hotel Properties, Inc. REIT		228,785
	12,325	Sun Communities, Inc. REIT		549,325
	79,750	Sunstone Hotel Investors, Inc. REIT(b)		1,056,688
	63,202	SWS Group, Inc.(b)		355,827
	26,444	Tanger Factory Outlet Centers, Inc. REIT		921,573
	8,008	Taylor Capital Group, Inc.(b)		184,184
	3,808	Tejon Ranch Co.(b)		140,972
	5,523	Territorial Bancorp, Inc.		120,457
	13,989	Texas Capital Bancshares, Inc.(b)		728,127
	32,584	TFS Financial Corp.(b)		395,570
	6,272	Tompkins Financial Corp.		309,335
	58,257	Tower Group International Ltd.(b)(c)		211,473
	24,902	TowneBank		362,573
	15,390	TriCo Bancshares		389,213
	97,050	TrustCo Bank Corp. NY		652,176
	52,184	Trustmark Corp.		1,417,317
	55,153	Two Harbors Investment Corp. REIT		514,577
	16,586	UMB Financial Corp.		977,247
	93,951	Umpqua Holdings Corp.(c)		1,537,978
	19,453	Union First Market Bankshares Corp.		469,206
	38,664	United Bankshares, Inc.(c)		1,143,681
	24,352	United Community Banks, Inc.(b)		379,648
	10,640	United Financial Bancorp, Inc.		166,835
	19,937	United Fire Group, Inc.		632,003
	3,079	Universal Health Realty Income Trust REIT		135,230
	38,744	Universal Insurance Holdings, Inc.		303,753
	18,643	Univest Corp. of Pennsylvania		372,301
	2,427	Urstadt Biddle Properties, Inc. REIT(b)		40,046
	12,118	Urstadt Biddle Properties, Inc., Class A REIT		239,209
	12,636	ViewPoint Financial Group, Inc.		275,591
	18,948	Virginia Commerce Bancorp, Inc.(b)		303,736
	1,033	Virtus Investment Partners, Inc.(b)		210,236
	5,651	Walker & Dunlop, Inc.(b)		73,350
	8,825	Walter Investment Management Corp.(b)		333,320
	10,130	Washington Banking Co.		172,311
	10,826	Washington Trust Bancorp, Inc.		356,067
	25,981	WesBanco, Inc.		763,841
	13,348	West Bancorporation, Inc.		184,469
	18,217	Westamerica Bancorp.(c)		937,811
	33,085	Western Alliance Bancorp(b)		699,748

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

28

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

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	28,420	Westfield Financial, Inc.	$	204,908
	3,884	Westwood Holdings Group, Inc.		207,134
	41,943	Wilshire Bancorp, Inc.		355,257
	21,545	Winthrop Realty Trust REIT		253,585
	24,293	Wintrust Financial Corp.		1,056,988
	7,451	World Acceptance Corp.(b)(c)		775,798
	5,100	WSFS Financial Corp.		357,051
				165,787,887
		Health Care—7.3%
	3,840	Abaxis, Inc.(b)		137,203
	32,054	Accuray, Inc.(b)(c)		216,364
	4,404	Acorda Therapeutics, Inc.(b)		134,806
	66,565	Affymetrix, Inc.(b)		470,615
	9,529	Air Methods Corp.(b)		416,608
	15,958	Albany Molecular Research, Inc.(b)		209,050
	10,085	Alexion Pharmaceuticals, Inc.(b)		1,239,951
	11,859	Align Technology, Inc.(b)		676,675
	22,469	Alkermes PLC(b)		790,684
	88,064	Allscripts Healthcare Solutions, Inc.(b)		1,217,925
	10,202	Almost Family, Inc.(b)		196,184
	92,721	Amedisys, Inc.(b)		1,509,498
	32,223	AMN Healthcare Services, Inc.(b)		399,565
	30,637	AmSurg Corp.(b)		1,314,021
	4,842	Analogic Corp.		446,578
	23,294	AngioDynamics, Inc.(b)		366,182
	10,611	ArthroCare Corp.(b)		397,276
	2,416	athenahealth, Inc.(b)		322,560
	720	Atrion Corp.		192,370
	16,555	Aveo Pharmaceuticals, Inc.(b)		34,269
	7,890	BioMarin Pharmaceutical, Inc.(b)		495,650
	12,174	Bio-Reference Labs, Inc.(b)(c)		394,559
	39,676	BioScrip, Inc.(b)		278,129
	24,032	Bruker Corp.(b)		491,454
	63,954	Cambrex Corp.(b)		1,075,706
	6,930	Cantel Medical Corp.(b)		243,243
	8,471	Capital Senior Living Corp.(b)		187,887
	4,434	Cepheid, Inc.(b)		180,552
	29,357	Charles River Laboratories International, Inc.(b)		1,444,658
	8,323	Chemed Corp.(c)		564,466
	4,517	Computer Programs & Systems, Inc.		257,650
	20,600	CONMED Corp.		747,162
	10,752	Cooper Cos., Inc. (The)		1,389,266
	7,083	CorVel Corp.(b)		294,653
	65,346	Cross Country Healthcare, Inc.(b)		388,155
	20,248	CryoLife, Inc.		182,029
	20,398	Cubist Pharmaceuticals, Inc.(b)		1,264,676
	4,567	Cyberonics, Inc.(b)		263,790
	33,068	Dendreon Corp.(b)(c)		84,985
	14,278	Emergent Biosolutions, Inc.(b)		278,849
	18,461	Emeritus Corp.(b)		353,713
	10,114	Ensign Group, Inc. (The)		430,654
	32,357	Enzon Pharmaceuticals, Inc.(b)		47,888
	12,060	ExamWorks Group, Inc.(b)		311,751
	90,664	Five Star Quality Care, Inc.(b)		459,666
	65,637	Gentiva Health Services, Inc.(b)		751,544

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Health Care (continued)
	21,284	Greatbatch, Inc.(b)	$	811,346
	20,214	Haemonetics Corp.(b)		819,880
	15,005	Hanger, Inc.(b)		550,683
	41,116	Healthways, Inc.(b)		395,947
	4,273	Hi-Tech Pharmacal Co., Inc.(b)		184,124
	14,278	HMS Holdings Corp.(b)		301,694
	4,032	ICU Medical, Inc.(b)		249,178
	11,541	IDEXX Laboratories, Inc.(b)		1,244,812
	22,502	Illumina, Inc.(b)		2,104,162
	40,345	Impax Laboratories, Inc.(b)		817,390
	10,154	Integra LifeSciences Holdings(b)		464,850
	13,754	InterMune, Inc.(b)		193,794
	53,927	Invacare Corp.		1,157,813
	6,745	IPC The Hospitalist Co., Inc.(b)		369,559
	4,744	Landauer, Inc.		229,610
	13,356	LHC Group, Inc.(b)		275,134
	10,402	Luminex Corp.(b)		202,839
	24,593	Masimo Corp.		630,073
	19,603	MedAssets, Inc.(b)		451,457
	37,576	Medical Action Industries, Inc.(b)		227,711
	12,787	Medicines Co. (The)(b)		433,735
	18,466	Meridian Bioscience, Inc.		456,479
	28,423	Merit Medical Systems, Inc.(b)		454,484
	37,050	Molina Healthcare, Inc.(b)		1,172,262
	19,138	Momenta Pharmaceuticals, Inc.(b)		313,672
	4,054	MWI Veterinary Supply, Inc.(b)		643,127
	18,992	Myriad Genetics, Inc.(b)(c)		463,025
	8,273	National Healthcare Corp.		400,248
	18,567	Natus Medical, Inc.(b)		366,327
	14,595	Nektar Therapeutics(b)		138,798
	7,272	Neogen Corp.(b)		336,112
	23,126	NuVasive, Inc.(b)		734,944
	14,344	Omnicell, Inc.(b)		330,916
	11,502	Orthofix International NV(b)		235,676
	26,804	PAREXEL International Corp.(b)		1,225,211
	157,065	PDL BioPharma, Inc.(c)		1,270,656
	66,637	PharMerica Corp.(b)		983,562
	22,116	Providence Service Corp. (The)(b)		661,047
	22,001	QLT, Inc. (Canada)(b)(c)		95,704
	20,164	Quality Systems, Inc.		460,142
	7,281	Questcor Pharmaceuticals, Inc.		446,835
	6,330	Quidel Corp.(b)		156,351
	42,802	RadNet, Inc.(b)		104,865
	1,475	Regeneron Pharmaceuticals, Inc.(b)		424,210
	17,990	Rigel Pharmaceuticals, Inc.(b)		55,589
	41,747	RTI Surgical, Inc.(b)		116,474
	8,739	Salix Pharmaceuticals Ltd.(b)		627,023
	56,525	Select Medical Holdings Corp.		479,332
	12,224	Sirona Dental Systems, Inc.(b)		883,184
	49,099	Skilled Healthcare Group, Inc., Class A(b)		209,162
	9,682	Spectrum Pharmaceuticals, Inc.(c)		83,168
	6,164	SurModics, Inc.(b)		145,347
	35,298	Symmetry Medical, Inc.(b)		285,914
	12,032	Syneron Medical Ltd. (Israel)(b)		114,304
	19,315	Team Health Holdings, Inc.(b)		839,044
	8,901	Techne Corp.		777,858

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

29

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

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Health Care (continued)
	13,087	Thoratec Corp.(b)	$	565,228
	32,877	Triple-S Management Corp., Class B (Puerto Rico)(b)		585,539
	13,574	United Therapeutics Corp.(b)		1,201,570
	5,705	US Physical Therapy, Inc.		182,104
	11,123	Vertex Pharmaceuticals, Inc.(b)		793,515
	29,254	ViroPharma, Inc.(b)		1,135,640
	15,103	Volcano Corp.(b)		289,524
	31,866	West Pharmaceutical Services, Inc.		1,540,721
	21,566	Wright Medical Group, Inc.(b)		585,948
				59,037,751
		Industrials—17.2%
	29,562	A.O. Smith Corp.		1,526,877
	11,068	AAON, Inc.		298,947
	56,577	AAR Corp.		1,656,575
	7,422	Acacia Research Corp.		111,998
	81,129	ACCO Brands Corp.(b)		474,605
	120,517	Accuride Corp.(b)		542,326
	21,816	Aceto Corp.		347,965
	31,639	Actuant Corp., Class A		1,188,361
	5,453	Advisory Board Co. (The)(b)		374,076
	104,407	Aegean Marine Petroleum Network, Inc. (Greece)		1,025,277
	26,524	Aegion Corp.(b)		543,742
	9,075	Aerovironment, Inc.(b)		246,023
	37,916	Air Lease Corp.		1,114,730
	113,376	Air Transport Services Group, Inc.(b)		820,842
	6,641	Alamo Group, Inc.		313,389
	17,198	Albany International Corp., Class A		633,058
	5,690	Allegiant Travel Co.		593,296
	17,079	Altra Holdings, Inc.		518,689
	6,519	AMERCO(b)		1,316,382
	20,068	Ameresco, Inc., Class A(b)		209,911
	3,201	American Railcar Industries, Inc.(c)		131,113
	4,972	American Science & Engineering, Inc.		327,058
	4,480	American Woodmark Corp.(b)		151,962
	11,982	Ampco-Pittsburgh Corp.		220,589
	49,757	API Technologies Corp.(b)		145,290
	15,603	Apogee Enterprises, Inc.		488,062
	22,059	Applied Industrial Technologies, Inc.		1,043,611
	141,503	ARC Document Solutions, Inc.(b)		882,979
	59,609	Arkansas Best Corp.		1,631,498
	15,119	Astec Industries, Inc.		511,173
	24,785	Atlas Air Worldwide Holdings, Inc.(b)		917,789
	8,645	AZZ, Inc.		388,160
	43,690	Baltic Trading Ltd.		195,731
	21,261	Barnes Group, Inc.		755,616
	3,178	Barrett Business Services, Inc.		264,632
	27,413	Beacon Roofing Supply, Inc.(b)		951,505
	25,181	Blount International, Inc.(b)		306,705
	65,291	BlueLinx Holdings, Inc.(b)		121,441
	34,659	Brady Corp., Class A		1,011,696
	22,486	Builders FirstSource, Inc.(b)		166,621
	4,386	CAI International, Inc.(b)		96,010
	77,653	Casella Waste Systems, Inc., Class A(b)		458,929

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrials (continued)
	66,699	CBIZ, Inc.(b)	$	544,264
	18,333	CDI Corp.		294,245
	18,879	Celadon Group, Inc.		350,017
	434,486	Cenveo, Inc.(b)(c)		1,364,286
	10,210	Chart Industries, Inc.(b)		1,097,269
	96,007	China Ceramics Co. Ltd. (China)(c)		336,024
	50,801	China Yuchai International Ltd.		1,187,219
	10,767	CIRCOR International, Inc.		794,282
	17,810	CLARCOR, Inc.		1,041,529
	22,240	Clean Harbors, Inc.(b)		1,373,320
	16,554	Coleman Cable, Inc.		407,228
	8,082	Colfax Corp.(b)		452,269
	19,337	Columbus McKinnon Corp.(b)		502,955
	42,508	Comfort Systems USA, Inc.		791,924
	35,989	Commercial Vehicle Group, Inc.(b)		283,233
	16,663	Consolidated Graphics, Inc.(b)		1,067,932
	31,322	Copart, Inc.(b)		1,009,508
	11,618	Corporate Executive Board Co. (The)		846,952
	12,029	Costamare, Inc. (Greece)		223,379
	22,343	Courier Corp.		379,608
	20,499	Covenant Transport Group, Inc., Class A(b)		133,858
	14,095	CRA International, Inc.(b)		268,510
	9,213	Cubic Corp.		483,682
	125,205	Diana Shipping, Inc. (Greece)(b)(c)		1,419,825
	18,597	DigitalGlobe, Inc.(b)		591,757
	109,709	Dolan Co. (The)(b)		281,952
	19,988	Douglas Dynamics, Inc.		303,218
	16,703	Ducommun, Inc.(b)		415,237
	4,016	DXP Enterprises, Inc.(b)		369,070
	35,805	Dycom Industries, Inc.(b)		1,061,618
	8,637	Dynamic Materials Corp.		190,878
	329,019	Eagle Bulk Shipping, Inc.(b)(c)		1,829,346
	5,887	Echo Global Logistics, Inc.(b)		108,380
	31,092	Edgen Group, Inc., Class A(b)		372,171
	15,542	Encore Wire Corp.		769,795
	7,970	EnerNOC, Inc.(b)		132,541
	33,397	Ennis, Inc.		592,797
	15,424	EnPro Industries, Inc.(b)		920,350
	13,552	ESCO Technologies, Inc.		488,956
	5,134	Exponent, Inc.(b)		388,182
	53,441	Federal Signal Corp.(b)		731,607
	35,508	Flow International Corp.(b)		141,677
	8,698	Forward Air Corp.		352,095
	9,266	Franklin Covey Co.(b)		174,201
	9,787	Franklin Electric Co., Inc.		370,438
	10,029	FreightCar America, Inc.		223,045
	34,771	Furmanite Corp.(b)		391,174
	14,852	G&K Services, Inc., Class A		926,765
	397,708	Genco Shipping & Trading Ltd.(b)(c)		1,061,880
	30,219	GenCorp, Inc.(b)(c)		507,679
	13,323	Generac Holdings, Inc.		657,490
	9,065	Genesee & Wyoming, Inc., Class A(b)		905,050
	23,589	Gibraltar Industries, Inc.(b)		377,660
	21,845	Global Power Equipment Group, Inc.		444,764
	9,952	Gorman-Rupp Co. (The)		405,444
	7,734	GP Strategies Corp.(b)		216,707

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

30

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

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrials (continued)
	16,851	Graco, Inc.	$	1,301,908
	31,788	Granite Construction, Inc.		1,028,342
	38,572	Great Lakes Dredge & Dock Corp.		313,205
	27,759	Greenbrier Cos., Inc.(b)		736,724
	61,821	Griffon Corp.		774,617
	28,958	H&E Equipment Services, Inc.		724,819
	11,132	Hardinge, Inc.		164,642
	136,124	Hawaiian Holdings, Inc.(b)(c)		1,123,023
	25,510	Healthcare Services Group, Inc.		698,719
	45,806	Heartland Express, Inc.		657,774
	5,398	HEICO Corp.		289,225
	10,842	HEICO Corp., Class A		422,404
	25,124	Heidrick & Struggles International, Inc.		465,296
	35,141	Herman Miller, Inc.		1,066,178
	42,477	Hexcel Corp.(b)		1,797,202
	43,166	Hill International, Inc.(b)		148,491
	37,925	HNI Corp.		1,473,386
	14,716	Houston Wire & Cable Co.		204,111
	26,906	Hub Group, Inc., Class A(b)		988,257
	43,540	Hudson Global, Inc.(b)		141,505
	4,067	Hurco Cos., Inc.		99,601
	14,828	Huron Consulting Group, Inc.(b)		868,476
	3,904	Hyster-Yale Materials Handling, Inc.		306,230
	15,142	ICF International, Inc.(b)		524,216
	30,218	II-VI, Inc.(b)		515,519
	11,113	InnerWorkings, Inc.(b)		106,351
	19,627	Insperity, Inc.		758,976
	12,576	Insteel Industries, Inc.		208,636
	30,992	Interface, Inc.		627,588
	17,172	International Shipholding Corp.		426,209
	11,676	Intersections, Inc.		100,063
	24,160	John Bean Technologies Corp.		656,669
	11,191	Kadant, Inc.(b)		400,638
	20,029	Kaman Corp.		744,678
	41,844	KAR Auction Services, Inc.		1,243,604
	28,405	Kforce, Inc.		559,294
	51,659	Kimball International, Inc., Class B		604,410
	35,653	Knight Transportation, Inc.		605,031
	31,783	Knoll, Inc.		521,877
	31,493	Korn/Ferry International(b)		749,533
	72,116	Kratos Defense & Security Solutions, Inc.(b)		611,544
	18,700	Landstar System, Inc.		1,033,923
	32,726	Layne Christensen Co.(b)		632,921
	5,588	LB Foster Co., Class A		261,239
	3,185	Lindsay Corp.		242,092
	7,217	LMI Aerospace, Inc.(b)		113,307
	34,476	LSI Industries, Inc.		317,524
	14,880	Lydall, Inc.(b)		271,114
	20,243	Macquarie Infrastructure Co. LLC (Australia)		1,111,543
	18,303	Marten Transport Ltd.(b)		322,865
	26,484	MasTec, Inc.(b)		846,693
	16,083	McGrath RentCorp		573,681
	174,366	Metalico, Inc.(b)(c)		285,960
	29,387	MFC Industrial Ltd. (Canada)(c)		238,329
	4,137	Middleby Corp. (The)(b)		941,788
	11,200	Miller Industries, Inc.		209,888

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrials (continued)
	12,198	Mine Safety Appliances Co.	$	587,456
	8,694	Mistras Group, Inc.(b)		159,622
	28,858	Mobile Mini, Inc.(b)		1,042,351
	18,602	Mueller Industries, Inc.		1,121,515
	133,498	Mueller Water Products, Inc., Class A		1,144,078
	10,318	Multi-Color Corp.		359,376
	17,368	MYR Group, Inc.(b)		459,384
	7,295	National Presto Industries, Inc.(c)		514,662
	54,558	Navigant Consulting, Inc.(b)		946,581
	210,711	Navios Maritime Holdings, Inc.(c)		1,491,834
	31,826	NCI Building Systems, Inc.(b)		459,249
	17,470	NN, Inc.		280,918
	10,288	Nordson Corp.		741,662
	9,933	Nortek, Inc.(b)		696,999
	13,283	Northwest Pipe Co.(b)		478,586
	14,552	On Assignment, Inc.(b)		491,712
	60,490	Orbital Sciences Corp.(b)		1,395,504
	30,326	Orion Marine Group, Inc.(b)		379,075
	109,384	Pacer International, Inc.(b)		872,884
	63,729	Paragon Shipping, Inc., Class A (Greece)(b)(c)		344,137
	13,838	Park-Ohio Holdings Corp.(b)		573,032
	14,074	Pike Electric Corp.(b)		152,140
	18,013	Polypore International, Inc.(b)(c)		814,188
	3,986	Powell Industries, Inc.(b)		250,440
	13,564	Primoris Services Corp.		353,207
	37,236	Quality Distribution, Inc.(b)		382,786
	27,475	Quanex Building Products Corp.		488,505
	14,464	Raven Industries, Inc.		482,519
	8,011	RBC Bearings, Inc.(b)		551,077
	36,897	Resources Connection, Inc.		470,806
	17,686	Rexnord Corp.(b)		415,975
	7,081	Roadrunner Transportation Systems, Inc.(b)		187,646
	18,381	Rollins, Inc.		508,051
	32,148	Rush Enterprises, Inc., Class A(b)		920,076
	6,325	Rush Enterprises, Inc., Class B(b)		153,761
	58,904	Safe Bulkers, Inc. (Greece)		439,424
	25,187	Saia, Inc.(b)		819,333
	12,922	Schawk, Inc.		188,920
	52,595	Seaspan Corp. (Hong Kong)(c)		1,174,446
	26,394	Sensata Technologies Holding NV(b)		993,206
	18,489	Simpson Manufacturing Co., Inc.		655,435
	21,234	Spirit Airlines, Inc.(b)		916,247
	15,748	Standard Parking Corp.(b)		416,850
	6,894	Standex International Corp.		424,050
	29,079	Sterling Construction Co., Inc.(b)		279,158
	5,083	Sun Hydraulics Corp.		201,693
	72,863	Swift Transportation Co.(b)(c)		1,587,685
	17,008	TAL International Group, Inc.(c)		821,656
	7,763	Team, Inc.(b)		289,482
	37,445	Tecumseh Products Co., Class A(b)		292,071
	10,724	Tecumseh Products Co., Class B(b)		78,178
	9,097	Tennant Co.		552,097
	38,294	Tetra Tech, Inc.(b)		1,000,622
	6,023	Textainer Group Holdings Ltd. (South Africa)(c)		228,272
	9,693	Thermon Group Holdings, Inc.(b)		227,882
	22,125	Titan International, Inc.		320,812

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

31

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

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrials (continued)
	14,620	Titan Machinery, Inc.(b)(c)	$	257,897
	22,592	Toro Co. (The)		1,331,572
	3,555	Trex Co., Inc.(b)		249,632
	20,207	Trimas Corp.(b)		765,037
	35,191	TrueBlue, Inc.(b)		869,218
	6,564	Twin Disc, Inc.		169,811
	7,367	UniFirst Corp.		757,475
	21,103	Universal Forest Products, Inc.		1,116,771
	5,694	US Ecology, Inc.		202,422
	39,848	USG Corp.(b)		1,088,249
	5,741	Valmont Industries, Inc.		806,610
	15,835	Verisk Analytics, Inc., Class A(b)		1,085,014
	17,837	Viad Corp.		476,248
	8,787	VSE Corp.		384,871
	29,394	Wabash National Corp.(b)		342,734
	18,850	Wabtec Corp.		1,228,831
	15,448	Watsco, Inc.		1,472,040
	15,097	Watts Water Technologies, Inc., Class A		872,305
	11,827	Wesco Aircraft Holdings, Inc.(b)		216,671
	13,069	Willis Lease Finance Corp.(b)		227,793
	29,911	Woodward, Inc.		1,199,132
	80,283	YRC Worldwide, Inc.(b)(c)		761,083
				140,005,048
		Information Technology—17.4%
	4,723	3D Systems Corp.(b)(c)		293,960
	16,104	Accelrys, Inc.(b)		150,572
	8,954	ACI Worldwide, Inc.(b)		493,544
	27,217	Active Network, Inc. (The)(b)		393,013
	21,099	Actuate Corp.(b)		169,003
	46,477	Acxiom Corp.(b)		1,544,431
	30,685	ADTRAN, Inc.		720,484
	20,341	Advanced Energy Industries, Inc.(b)		424,720
	10,972	Advent Software, Inc.		368,111
	13,775	Aeroflex Holding Corp.(b)		106,756
	18,878	Agilysys, Inc.(b)		221,816
	21,706	Alpha & Omega Semiconductor Ltd.(b)		159,756
	16,780	American Software, Inc., Class A		146,825
	29,402	Amtech Systems, Inc.(b)		235,216
	60,246	ANADIGICS, Inc.(b)		121,697
	10,314	Anaren, Inc.(b)		257,644
	15,142	Applied Micro Circuits Corp.(b)		176,556
	64,042	ARRIS Group, Inc.(b)		1,143,790
	7,975	Aruba Networks, Inc.(b)		149,611
	42,212	AsiaInfo-Linkage, Inc.(b)		489,659
	5,424	Aspen Technology, Inc.(b)		207,360
	18,883	ATMI, Inc.(b)		516,261
	82,089	Aviat Networks, Inc.(b)		169,103
	53,918	Avid Technology, Inc.(b)		401,689
	46,886	AVX Corp. (Japan)		621,239
	170,393	Axcelis Technologies, Inc.(b)		369,753
	39,743	AXT, Inc.(b)		89,819
	4,916	Badger Meter, Inc.		255,681
	21,235	Bankrate, Inc. (United Kingdom)(b)		357,597
	2,186	Bel Fuse, Inc., Class A(b)		45,075
	9,951	Bel Fuse, Inc., Class B(b)		209,369

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	18,897	Belden, Inc.	$	1,271,012
	23,194	Black Box Corp.		580,778
	13,966	Blackbaud, Inc.		502,776
	15,496	Blucora, Inc.(b)		366,170
	22,594	Booz Allen Hamilton Holding Corp.		447,361
	7,044	Bottomline Technologies, Inc.(b)		221,322
	36,835	Brooks Automation, Inc.		355,089
	16,024	Cabot Microelectronics Corp.		655,221
	59,037	Cadence Design Systems, Inc.(b)		765,710
	20,912	Calix, Inc.(b)		212,675
	98,888	Canadian Solar, Inc. (Canada)(b)(c)		2,274,424
	13,066	Cardtronics, Inc.(b)		512,840
	3,058	Cass Information Systems, Inc.		175,315
	5,834	Cavium, Inc.(b)		235,169
	8,133	CEVA, Inc.(b)		116,546
	58,312	Checkpoint Systems, Inc.(b)		992,470
	39,369	ChipMOS TECHNOLOGIES Bermuda Ltd. (Taiwan)		628,723
	119,518	CIBER, Inc.(b)		388,433
	23,488	Ciena Corp.(b)		546,566
	17,180	Cirrus Logic, Inc.(b)		385,347
	20,346	Cognex Corp.(b)		635,812
	10,844	Coherent, Inc.(b)		717,764
	21,196	Cohu, Inc.		202,634
	3,546	CommVault Systems, Inc.(b)		276,872
	6,173	Computer Task Group, Inc.(b)		105,743
	98,804	Compuware Corp.		1,055,227
	10,422	comScore, Inc.(b)		278,476
	22,453	Comtech Telecommunications Corp.		674,039
	9,604	Comverse, Inc.(b)		303,294
	5,411	Concur Technologies, Inc.(b)		565,991
	9,831	Constant Contact, Inc.(b)		254,721
	3,995	CoStar Group, Inc.(b)		707,075
	9,301	Cray, Inc.(b)		207,970
	26,876	CSG Systems International, Inc.(b)		748,765
	35,887	CTS Corp.		668,216
	30,447	Cypress Semiconductor Corp.		282,548
	35,938	Daktronics, Inc.		429,818
	12,581	Datalink Corp.(b)		129,207
	14,314	Dealertrack Technologies, Inc.(b)		533,912
	19,755	Dice Holdings, Inc.(b)		145,792
	22,973	Digi International, Inc.(b)		231,568
	34,998	Digital River, Inc.(b)		624,364
	23,278	Diodes, Inc.(b)		563,793
	24,881	Dolby Laboratories, Inc., Class A(b)(c)		889,247
	26,930	DSP Group, Inc.(b)		200,629
	6,964	DTS, Inc.(b)		139,280
	155,263	EarthLink, Inc.		785,631
	10,935	Ebix, Inc.(c)		124,440
	18,791	Electro Rent Corp.		340,869
	25,041	Electro Scientific Industries, Inc.		299,991
	21,202	Electronics for Imaging, Inc.(b)		727,441
	84,146	Emulex Corp.(b)		633,619
	57,267	Entegris, Inc.(b)		592,713
	47,050	Entropic Communications, Inc.(b)		201,374
	17,994	EPIQ Systems, Inc.		269,190

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

32

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

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	4,760	ePlus, Inc.(b)	$	258,754
	35,097	Euronet Worldwide, Inc.(b)		1,523,210
	10,200	Exar Corp.(b)		117,606
	7,049	ExlService Holdings, Inc.(b)		203,787
	46,011	Extreme Networks, Inc.(b)		246,619
	12,776	F5 Networks, Inc.(b)		1,041,372
	13,577	Fabrinet (Cayman Islands)(b)		227,279
	9,655	FactSet Research Systems, Inc.(c)		1,051,816
	12,319	Fair Isaac Corp.		705,632
	5,183	FARO Technologies, Inc.(b)		246,193
	11,344	FEI Co.		1,010,524
	44,372	Finisar Corp.(b)		1,021,000
	8,751	FleetCor Technologies, Inc.(b)		1,009,428
	42,040	FormFactor, Inc.(b)		219,449
	12,779	Forrester Research, Inc.		495,953
	10,776	Fortinet, Inc.(b)		216,705
	39,725	Freescale Semiconductor Ltd.(b)		613,354
	15,251	Gartner, Inc.(b)		899,046
	66,139	Genpact Ltd.(b)		1,311,536
	31,025	Global Cash Access Holdings, Inc.(b)		257,508
	14,587	Globecomm Systems, Inc.(b)		204,656
	22,487	GSI Group, Inc.(b)		224,420
	252,869	GT Advanced Technologies, Inc.(b)(c)		1,896,518
	31,914	Hackett Group, Inc. (The)		227,228
	82,597	Harmonic, Inc.(b)		603,784
	23,165	Heartland Payment Systems, Inc.(c)		937,024
	7,524	Hittite Microwave Corp.(b)		480,708
	10,433	Hollysys Automation Technologies Ltd. (China)(b)		174,961
	82,033	Hutchinson Technology, Inc.(b)		305,163
	27,461	IAC/InterActiveCorp.		1,466,143
	6,071	iGATE Corp.(b)		193,301
	134,357	Imation Corp.(b)		624,760
	44,272	Infinera Corp.(b)(c)		452,017
	23,192	Informatica Corp.(b)		895,211
	99,978	Integrated Device Technology, Inc.(b)		1,063,766
	26,552	Integrated Silicon Solution, Inc.(b)		286,231
	10,565	InterDigital, Inc.		409,394
	25,872	Internap Network Services Corp.(b)		188,089
	52,604	International Rectifier Corp.(b)		1,369,808
	130,639	Intersil Corp., Class A		1,457,931
	7,980	InterXion Holding NV (Netherlands)(b)		179,231
	29,434	Intevac, Inc.(b)		150,113
	30,848	IntraLinks Holdings, Inc.(b)		320,511
	4,960	IPG Photonics Corp.(b)(c)		328,699
	10,504	Ixia(b)		148,947
	13,831	IXYS Corp.		160,855
	14,278	j2 Global, Inc.		785,004
	20,412	Jack Henry & Associates, Inc.		1,114,699
	78,311	JDS Uniphase Corp.(b)		1,025,091
	99,260	Kemet Corp.(b)		562,804
	10,534	Key Tronic Corp.(b)		114,294
	38,036	Kopin Corp.(b)		139,592
	45,597	Kulicke & Soffa Industries, Inc. (Singapore)(b)		588,201
	67,500	Lattice Semiconductor Corp.(b)		346,275
	1,998	LinkedIn Corp., Class A(b)		446,893

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	51,763	Lionbridge Technologies, Inc.(b)	$	225,687
	4,648	Liquidity Services, Inc.(b)(c)		121,359
	6,905	Littelfuse, Inc.		587,132
	33,946	LTX-Credence Corp.(b)		208,089
	27,710	Magnachip Semiconductor Corp. (South Korea)(b)		517,900
	4,080	Manhattan Associates, Inc.(b)		434,561
	32,865	ManTech International Corp., Class A		918,248
	13,252	MAXIMUS, Inc.		642,059
	6,805	Measurement Specialties, Inc.(b)		379,243
	50,322	Mentor Graphics Corp.(b)		1,111,110
	1,569	MercadoLibre, Inc. (Argentina)		211,242
	36,039	Mercury Systems, Inc.(b)		332,280
	27,435	Methode Electronics, Inc.		701,787
	22,821	Micrel, Inc.		209,953
	26,630	MICROS Systems, Inc.(b)		1,444,678
	39,146	Microsemi Corp.(b)		983,739
	2,769	MicroStrategy, Inc., Class A(b)		337,790
	25,746	MKS Instruments, Inc.		763,111
	137,570	ModusLink Global Solutions, Inc.(b)		566,788
	9,056	Monolithic Power Systems, Inc.		288,343
	5,717	Monotype Imaging Holdings, Inc.		161,334
	194,666	Monster Worldwide, Inc.(b)		840,957
	13,633	Move, Inc.(b)		231,352
	6,248	MTS Systems Corp.		408,119
	13,019	Multi-Fineline Electronix, Inc. (Singapore)(b)		174,585
	20,255	Nam Tai Electronics, Inc. (China)		141,582
	8,855	Nanometrics, Inc.(b)		164,526
	19,044	National Instruments Corp.		553,228
	36,934	NCI, Inc., Class A(b)		210,524
	67,260	Net 1 UEPS Technologies, Inc. (South Africa)(b)		799,049
	22,179	NETGEAR, Inc.(b)		637,868
	14,101	NetScout Systems, Inc.(b)		399,340
	19,805	NeuStar, Inc., Class A(b)		909,446
	26,090	Newport Corp.(b)		414,048
	8,100	NIC, Inc.		199,422
	106,825	Novatel Wireless, Inc.(b)		327,419
	144,752	Oclaro, Inc.(b)(c)		295,294
	96,546	OCZ Technology Group, Inc.(b)(c)		107,166
	43,082	OmniVision Technologies, Inc.(b)		603,579
	2,013	OpenTable, Inc.(b)		139,863
	14,604	Oplink Communications, Inc.(b)		266,523
	38,251	Orbotech Ltd. (Israel)(b)		455,952
	7,329	OSI Systems, Inc.(b)		533,844
	14,450	Park Electrochemical Corp.		405,323
	12,624	PC Connection, Inc.(b)		252,354
	16,570	PCM, Inc.(b)		174,316
	18,875	Perficient, Inc.(b)		341,449
	24,840	Pericom Semiconductor Corp.(b)		200,707
	80,632	Photronics, Inc.(b)		677,309
	14,623	Plantronics, Inc.		627,912
	43,720	Plexus Corp.(b)		1,673,602
	145,989	PMC—Sierra, Inc.(b)		856,955
	6,472	Power Integrations, Inc.		371,752
	19,338	PRGX Global, Inc.(b)		138,847

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

33

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

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	26,609	Progress Software Corp.(b)	$	690,770
	44,726	PTC, Inc.(b)		1,239,805
	6,345	QLIK Technologies, Inc.(b)		160,782
	80,540	QLogic Corp.(b)		994,669
	309,288	Quantum Corp.(b)		383,517
	40,186	QuinStreet, Inc.(b)		357,254
	12,275	Rackspace Hosting, Inc.(b)		628,848
	48,556	RadiSys Corp.(b)		146,639
	7,996	RADWARE Ltd. (Israel)(b)		119,700
	41,601	Rambus, Inc.(b)		363,593
	10,412	RealD, Inc.(b)(c)		72,051
	25,697	RealNetworks, Inc.(b)		197,096
	174,479	RF Micro Devices, Inc.(b)		916,015
	11,872	Richardson Electronics Ltd.		136,765
	34,544	Riverbed Technology, Inc.(b)		511,942
	20,230	Rofin-Sinar Technologies, Inc.(b)		531,038
	7,884	Rogers Corp.(b)		480,609
	24,691	Rubicon Technology, Inc.(b)(c)		212,343
	14,795	Rudolph Technologies, Inc.(b)		156,827
	41,416	Sapient Corp.(b)		654,787
	30,899	ScanSource, Inc.(b)		1,188,376
	16,767	SeaChange International, Inc.(b)		237,924
	16,577	Semtech Corp.(b)		515,710
	52,683	Sigma Designs, Inc.(b)		286,596
	11,071	Silicon Graphics International Corp.(b)		141,377
	34,412	Silicon Image, Inc.(b)		180,663
	13,006	Silicon Laboratories, Inc.(b)		523,101
	15,307	SINA Corp. (China)(b)		1,279,053
	18,696	Sohu.com, Inc. (China)(b)		1,251,884
	2,663	SolarWinds, Inc.(b)		96,374
	14,054	Solera Holdings, Inc.		790,116
	119,955	Sonus Networks, Inc.(b)		359,865
	77,163	Spansion, Inc., Class A(b)		923,641
	12,489	SS&C Technologies Holdings, Inc.(b)		490,818
	112,033	STR Holdings, Inc.(b)		222,946
	39,308	SunPower Corp. (France)(b)(c)		1,186,709
	27,731	Super Micro Computer, Inc.(b)		386,016
	6,071	Supertex, Inc.(b)		154,871
	35,030	Sykes Enterprises, Inc.(b)		655,762
	41,997	Symmetricom, Inc.(b)		301,118
	12,432	Synaptics, Inc.(b)		578,088
	6,508	Synchronoss Technologies, Inc.(b)		225,307
	4,477	Syntel, Inc.		384,306
	59,029	Take-Two Interactive Software, Inc.(b)		1,057,209
	116,759	TeleCommunication Systems, Inc., Class A(b)		266,211
	27,446	TeleTech Holdings, Inc.(b)		726,496
	572,492	Tellabs, Inc.		1,396,880
	6,340	Tessco Technologies, Inc.		224,626
	36,819	Tessera Technologies, Inc.		700,297
	43,662	TIBCO Software, Inc.(b)		1,072,339
	15,213	TiVo, Inc.(b)		202,181
	169,181	TriQuint Semiconductor, Inc.(b)		1,341,605
	76,761	TTM Technologies, Inc.(b)		671,659
	3,954	Tyler Technologies, Inc.(b)		382,391
	1,385	Ultimate Software Group, Inc. (The)(b)		213,955
	22,787	Ultra Clean Holdings, Inc.(b)		212,147

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	5,330	Ultratech, Inc.(b)	$	126,801
	171,517	United Online, Inc.(b)		1,481,907
	4,777	Universal Display Corp.(b)(c)		152,386
	95,266	Unwired Planet, Inc.(b)		154,331
	87,842	UTStarcom Holdings Corp(b)		245,958
	25,261	ValueClick, Inc.(b)		485,264
	11,812	Vantiv, Inc., Class A(b)		324,830
	26,243	Veeco Instruments, Inc.(b)		766,558
	44,141	Velti PLC (Ireland)(b)(c)		11,905
	59,580	VeriFone Systems, Inc.(b)		1,350,083
	6,654	Verint Systems, Inc.(b)		243,004
	19,198	Verisign, Inc.(b)		1,042,067
	18,445	ViaSat, Inc.(b)		1,219,583
	5,430	Virtusa Corp.(b)		168,764
	13,833	Vishay Precision Group, Inc.(b)		226,861
	15,797	VistaPrint NV (Netherlands)(b)(c)		853,828
	10,040	VMware, Inc., Class A(b)		816,051
	27,963	WebMD Health Corp.(b)(c)		984,857
	61,185	Westell Technologies, Inc., Class A(b)		219,654
	11,292	Wex, Inc.(b)		1,054,108
	12,111	XO Group, Inc.(b)		168,101
	55,073	Xyratex Ltd.		547,426
	17,510	Yandex NV, Class A (Russia)(b)		645,419
	22,747	Zebra Technologies Corp., Class A(b)		1,098,908
	8,241	Zygo Corp.(b)		127,241
	219,445	Zynga, Inc., Class A(b)		787,808
				141,509,190
		Materials—5.4%
	30,242	A. Schulman, Inc.		1,001,615
	18,345	A.M. Castle & Co.(b)		262,517
	3,915	AEP Industries, Inc.(b)		232,629
	13,913	Allied Nevada Gold Corp.(b)(c)		56,765
	17,904	AMCOL International Corp.		574,360
	7,919	American Pacific Corp.(b)		360,473
	4,048	American Vanguard Corp.		105,653
	9,244	Axiall Corp.		359,499
	6,201	Balchem Corp.		355,069
	29,538	Berry Plastics Group, Inc.(b)		593,123
	25,275	Calgon Carbon Corp.(b)		504,236
	22,991	Carpenter Technology Corp.		1,364,056
	105,126	Century Aluminum Co.(b)		912,494
	56,672	China Gerui Advanced Materials Group Ltd.(b)(c)		82,174
	19,900	Clearwater Paper Corp.(b)		1,039,178
	2,126	Deltic Timber Corp.		135,809
	9,875	Eagle Materials, Inc.		740,724
	209,205	Ferro Corp.(b)		2,684,100
	9,048	Flotek Industries, Inc.(b)		193,446
	10,793	FutureFuel Corp.		187,906
	24,472	Globe Specialty Metals, Inc.		429,239
	46,607	Golden Minerals Co.(b)(c)		35,887
	94,243	Gulf Resources, Inc. (China)(b)(c)		211,104
	23,879	H.B. Fuller Co.		1,143,088
	7,963	Handy & Harman Ltd.(b)		183,866
	5,850	Hawkins, Inc.		210,659

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

34

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

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Materials (continued)
	6,498	Haynes International, Inc.	$	350,242
	53,006	Headwaters, Inc.(b)		462,742
	139,219	Hecla Mining Co.		434,363
	39,062	Horsehead Holding Corp.(b)		566,790
	15,389	Innophos Holdings, Inc.		771,297
	8,588	Innospec, Inc.(b)		395,563
	23,105	Intrepid Potash, Inc.(b)(c)		343,109
	15,227	Kaiser Aluminum Corp.		1,027,061
	17,988	KapStone Paper and Packaging Corp.(b)		934,657
	14,983	Koppers Holdings, Inc.		666,893
	37,066	Kraton Performance Polymers, Inc.(b)		788,394
	17,045	Kronos Worldwide, Inc.		264,368
	16,953	Landec Corp.(b)		198,520
	37,142	Louisiana-Pacific Corp.(b)		631,786
	9,920	LSB Industries, Inc.(b)		364,262
	25,244	Materion Corp.		752,524
	72,808	Mercer International, Inc.(b)		582,464
	19,115	Minerals Technologies, Inc.		1,082,483
	37,645	Molycorp, Inc.(b)(c)		190,860
	23,874	Myers Industries, Inc.		425,435
	13,671	Neenah Paper, Inc.		562,425
	3,810	NewMarket Corp.		1,186,282
	57,063	Noranda Aluminum Holding Corp.		155,211
	20,221	Olympic Steel, Inc.		553,449
	57,329	Omnova Solutions, Inc.(b)		498,762
	41,382	P.H. Glatfelter Co.		1,084,208
	12,851	Penford Corp.(b)		174,774
	45,938	PolyOne Corp.		1,391,921
	6,903	Quaker Chemical Corp.		524,007
	12,098	Royal Gold, Inc.		581,188
	22,100	RTI International Metals, Inc.(b)		749,190
	16,592	Schweitzer-Mauduit International, Inc.		1,026,713
	25,424	Silgan Holdings, Inc.		1,145,860
	9,940	Stepan Co.		585,168
	65,110	Stillwater Mining Co.(b)		710,350
	61,864	SunCoke Energy, Inc.(b)		1,237,280
	9,662	Texas Industries, Inc.(b)		518,849
	14,027	Tredegar Corp.		409,869
	30,877	Tronox Ltd., Class A		712,950
	5,578	Universal Stainless & Alloy Products, Inc.(b)		180,281
	26,670	US Concrete, Inc.(b)		582,740
	45,576	Wausau Paper Corp.		533,239
	7,077	Westlake Chemical Corp.		760,211
	40,455	Worthington Industries, Inc.		1,640,046
	45,478	Yongye International, Inc. (China)(b)(c)		286,511
	19,316	Zep, Inc.		384,195
	20,819	Zoltek Cos., Inc.(b)(c)		347,677
				43,716,838
		Telecommunication Services—1.5%
	351,839	Alaska Communications Systems Group, Inc.		865,524
	6,938	Atlantic Tele-Network, Inc.		384,504
	43,595	Cbeyond, Inc.(b)		280,752
	10,582	Cogent Communications Group, Inc.		371,746
	45,422	Consolidated Communications Holdings, Inc.(c)		846,212
	69,814	Fairpoint Communications, Inc.(b)(c)		652,063

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Telecommunication Services (continued)
	51,996	General Communication, Inc., Class A(b)	$	494,482
	15,686	Hawaiian Telcom Holdco, Inc.(b)		416,934
	18,543	HickoryTech Corp.		248,105
	31,661	IDT Corp., Class B		693,059
	82,522	Inteliquent, Inc.		1,060,408
	53,105	Iridium Communications, Inc.(b)		320,223
	14,888	Lumos Networks Corp.		327,685
	43,553	NTELOS Holdings Corp.		829,249
	38,896	Premiere Global Services, Inc.(b)		350,453
	36,567	PTGi Holding, Inc.(b)		128,716
	9,781	SBA Communications Corp., Class A(b)		855,544
	20,846	Shenandoah Telecommunications Co.		578,059
	15,836	Straight Path Communications, Inc., Class B(b)		86,464
	24,547	United States Cellular Corp.		1,188,075
	68,136	USA Mobility, Inc.		1,016,589
	116,311	Vonage Holdings Corp.(b)		433,840
				12,428,686
		Utilities—1.2%
	21,232	American States Water Co.		604,687
	5,373	Artesian Resources Corp., Class A		123,042
	30,102	California Water Service Group		656,224
	7,326	Chesapeake Utilities Corp.		398,608
	5,500	Connecticut Water Service, Inc.		176,275
	13,201	Consolidated Water Co. Ltd. (Cayman Islands)		198,543
	5,658	Delta Natural Gas Co., Inc.		126,287
	28,134	El Paso Electric Co.		989,473
	47,789	Empire District Electric Co. (The)		1,074,775
	27,763	Laclede Group, Inc. (The)		1,306,804
	15,066	MGE Energy, Inc.		848,366
	11,511	Middlesex Water Co.		238,623
	13,555	Ormat Technologies, Inc. (Israel)		353,379
	31,911	Otter Tail Corp.		951,905
	9,729	SJW Corp.		274,650
	19,008	South Jersey Industries, Inc.		1,131,926
	12,772	Unitil Corp.		385,970
	6,699	York Water Co. (The)		138,737
				9,978,274
		Total Common Stocks and Other Equity Interests (Cost $657,498,230)		813,730,587
		Warrants—0.0%
		Energy—0.0%
	4,742	Magnum Hunter Corp., expiring 05/15/16		0
		Financials—0.0%
	1	Tejon Ranch Co., Class W, expiring 08/31/16(b)		5
		Total Warrants (Cost $0)		5
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $657,498,230)—100.0%		813,730,592

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

35

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

October 31, 2013

(Unaudited)

Number of Shares			Value
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—6.1%
	49,944,340	Invesco Liquid Assets Portfolio—Institutional Class (Cost $49,944,340)(d)(e)	$	49,944,340
		Total Investments (Cost $707,442,570)—106.1%		863,674,932
		Other assets less liabilities—(6.1)%		(49,886,022	)
		Net Assets—100.0%	$	813,788,910

Investment Abbreviations:

REIT—Real Estate Investment Trust

Notes to Schedule of Investments:

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

^(b)  Non-income producing security.

^(c)  All or a portion of this security was out on loan at October 31, 2013.

^(d)  The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2G.

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

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

36

Statements of Assets and Liabilities

October 31, 2013

(Unaudited)

	PowerShares Dynamic MagniQuant Portfolio (PIQ)			PowerShares Dynamic Market Portfolio (PWC)			PowerShares Dynamic OTC Portfolio (PWO)			PowerShares FTSE RAFI US 1000 Portfolio (PRF)			PowerShares FTSE RAFI US 1500 Small-Mid Portfolio  (PRFZ)
Assets:
Unaffiliated investments, at value(a)	$	19,830,857		$	153,891,260		$	25,663,291		$	2,497,865,039		$	813,730,592
Affiliated investments, at value		74,628			136,983			74,312			26,836,220			49,944,340
Total investments, at value		19,905,485			154,028,243			25,737,603			2,524,701,259			863,674,932
Foreign currencies, at value		—			—			—			—			25,976
Receivables:
Investments sold		171,367			11,487			89,303			5,690,393			2,904,674
Dividends		4,690			57,950			9,992			2,847,728			281,740
Foreign tax reclaims		—			—			—			2,407			154
Security lending		—			—			—			32,506			94,723
Shares sold		—			—			—			7,916,423			—
Other assets		813			1,195			813			1,195			246
Total Assets		20,082,355			154,098,875			25,837,711			2,541,191,911			866,982,445
Liabilities:
Due to custodian		—			—			—			5,788,720			2,037,033
Payables:
Investments purchased		168,039			—			84,875			8,043,140			490,133
Collateral upon return of securities loaned		—			—			—			24,795,387			49,944,340
Accrued advisory fees		2,855			61,593			4,538			560,124			176,484
Accrued trustees fees		11,456			24,787			12,259			67,453			26,724
Accrued expenses		68,466			89,459			60,681			1,500,036			518,821
Total Liabilities		250,816			175,839			162,353			40,754,860			53,193,535
Net Assets	$	19,831,539		$	153,923,036		$	25,675,358		$	2,500,437,051		$	813,788,910
Net Assets Consist of:
Shares of beneficial interest	$	46,472,747		$	492,794,575		$	101,557,334		$	2,169,089,480		$	681,774,998
Undistributed net investment income (loss).		(7,087	)		28,477			(1,239	)		4,760,266			777,095
Undistributed net realized gain (loss)		(28,787,738	)		(354,057,347	)		(78,469,164	)		(170,815,070	)		(24,995,965	)
Net unrealized appreciation		2,153,617			15,157,331			2,588,427			497,402,375			156,232,782
Net Assets	$	19,831,539		$	153,923,036		$	25,675,358		$	2,500,437,051		$	813,788,910
Shares outstanding (unlimited amount authorized, $0.01 par value)		550,000			2,400,000			400,000			31,700,000			8,850,000
Net asset value	$	36.06		$	64.13		$	64.19		$	78.88		$	91.95
Market price	$	36.09		$	64.27		$	64.20		$	78.99		$	92.08
Unaffiliated investments, at cost	$	17,677,240		$	138,733,929		$	23,074,864		$	2,000,707,653		$	657,498,230
Affiliated investments, at cost	$	74,628		$	136,983		$	74,312		$	26,591,231		$	49,944,340
Total investments, at cost	$	17,751,868		$	138,870,912		$	23,149,176		$	2,027,298,884		$	707,442,570
Foreign currencies, at cost	$	—		$	—		$	—		$	—		$	25,556
(a) Includes securities on loan with an aggregate value of	$	—		$	—		$	—		$	23,981,761		$	48,187,928

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

37

Statements of Operations

For the six months ended October 31, 2013

(Unaudited)

	PowerShares Dynamic MagniQuant Portfolio (PIQ)			PowerShares Dynamic Market Portfolio (PWC)			PowerShares Dynamic OTC Portfolio (PWO)			PowerShares FTSE RAFI US 1000 Portfolio (PRF)			PowerShares FTSE RAFI US 1500 Small-Mid Portfolio  (PRFZ)
Investment Income:
Unaffiliated dividend income	$	148,930		$	1,224,084		$	144,182		$	23,951,940		$	4,817,492
Affiliated dividend income		4			7			3			33,001			16
Securities lending income		—			—			—			178,141			639,871
Foreign withholding tax		—			—			—			(1,522	)		(1,923	)
Total Income		148,934			1,224,091			144,185			24,161,560			5,455,456
Expenses:
Advisory fees		48,865			373,535			61,259			3,115,358			991,360
Accounting & administration fees		18,046			18,045			18,046			188,830			60,881
Professional fees		13,743			15,317			13,867			21,124			20,958
Custodian & transfer agent fees		5,190			9,059			3,959			22,482			21,649
Sub-licensing		4,887			19,414			3,676			964,837			307,024
Trustees fees		4,244			5,892			4,292			30,764			12,469
Other expenses		4,550			10,823			5,164			59,452			24,583
Total Expenses		99,525			452,085			110,263			4,402,847			1,438,924
Waivers		(36,555	)		(4,631	)		(37,393	)		(229,428	)		(106,357	)
Net Expenses		62,970			447,454			72,870			4,173,419			1,332,567
Net Investment Income		85,964			776,637			71,315			19,988,141			4,122,889
Realized and Unrealized Gain (Loss):
Net realized gain (loss) from:
Investment securities		(60,132	)		(286,839	)		415,940			1,992,188			1,242,010
In-kind redemptions		3,271,064			18,875,331			3,416,794			14,784,617			2,512,164
Net realized gain		3,210,932			18,588,492			3,832,734			16,776,805			3,754,174
Change in net unrealized appreciation (depreciation) on:
Investment securities		(616,413	)		1,281,451			(294,157	)		195,102,875			107,452,949
Foreign currencies		—			—			—			—			784
Net change in unrealized appreciation (depreciation)		(616,413	)		1,281,451			(294,157	)		195,102,875			107,453,733
Net realized and unrealized gain		2,594,519			19,869,943			3,538,577			211,879,680			111,207,907
Net increase in net assets resulting from operations	$	2,680,483		$	20,646,580		$	3,609,892		$	231,867,821		$	115,330,796

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

38

(This Page Intentionally Left Blank)

Statements of Changes in Net Assets

For the six months ended October 31, 2013 and the year ended April 30, 2013

(Unaudited)

	PowerShares Dynamic MagniQuant Portfolio (PIQ)						PowerShares Dynamic Market Portfolio (PWC)
	October 31, 2013			April 30, 2013			October 31, 2013			April 30, 2013
Operations:
Net investment income	$	85,964		$	306,960		$	776,637		$	2,191,518
Net realized gain		3,210,932			1,699,696			18,588,492			19,915,303
Net change in unrealized appreciation (depreciation)		(616,413	)		1,413,674			1,281,451			5,567,136
Net increase in net assets resulting from operations		2,680,483			3,420,330			20,646,580			27,673,957
Distributions to Shareholders from:
Net investment income		(94,117	)		(330,631	)		(900,135	)		(2,277,011	)
Shareholder Transactions:
Proceeds from shares sold		16,494,945			20,180,567			136,600,215			188,278,816
Value of shares repurchased		(18,164,521	)		(22,839,404	)		(143,081,188	)		(201,661,797	)
Net increase (decrease) in net assets resulting from shares transactions		(1,669,576	)		(2,658,837	)		(6,480,973	)		(13,382,981	)
Increase (Decrease) in Net Assets		916,790			430,862			13,265,472			12,013,965
Net Assets:
Beginning of period		18,914,749			18,483,887			140,657,564			128,643,599
End of period	$	19,831,539		$	18,914,749		$	153,923,036		$	140,657,564
Undistributed net investment income (loss) at end of period	$	(7,087	)	$	1,066		$	28,477		$	151,975
Changes in Shares Outstanding:
Shares sold		500,000			750,000			2,350,000			3,900,000
Shares repurchased		(550,000	)		(850,000	)		(2,450,000	)		(4,150,000	)
Shares outstanding, beginning of period		600,000			700,000			2,500,000			2,750,000
Shares outstanding, end of period		550,000			600,000			2,400,000			2,500,000

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

40

PowerShares Dynamic OTC Portfolio (PWO)						PowerShares FTSE RAFI US 1000 Portfolio (PRF)						PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ)
October 31, 2013			April 30, 2013			October 31, 2013			April 30, 2013			October 31, 2013			April 30, 2013
$	71,315		$	343,750		$	19,988,141		$	31,090,567		$	4,122,889		$	7,804,825
	3,832,734			1,181,833			16,776,805			63,846,705			3,754,174			33,918,746
	(294,157	)		302,308			195,102,875			215,084,872			107,453,733			44,374,003
	3,609,892			1,827,891			231,867,821			310,022,144			115,330,796			86,097,574
	(74,188	)		(376,429	)		(19,312,837	)		(30,575,583	)		(4,439,229	)		(7,992,111	)
	20,700,993			22,456,458			547,584,777			319,681,049			147,298,956			130,742,268
	(20,721,287	)		(29,971,505	)		(38,152,761	)		(209,338,770	)		(8,164,329	)		(108,729,552	)
	(20,294	)		(7,515,047	)		509,432,016			110,342,279			139,134,627			22,012,716
	3,515,410			(6,063,585	)		721,987,000			389,788,840			250,026,194			100,118,179
	22,159,948			28,223,533			1,778,450,051			1,388,661,211			563,762,716			463,644,537
$	25,675,358		$	22,159,948		$	2,500,437,051		$	1,778,450,051		$	813,788,910		$	563,762,716
$	(1,239	)	$	1,634		$	4,760,266		$	4,084,962		$	777,095		$	1,093,435
	350,000			450,000			7,300,000			4,900,000			1,700,000			1,800,000
	(350,000	)		(600,000	)		(500,000	)		(3,250,000	)		(100,000	)		(1,500,000	)
	400,000			550,000			24,900,000			23,250,000			7,250,000			6,950,000
	400,000			400,000			31,700,000			24,900,000			8,850,000			7,250,000

41

Financial Highlights

PowerShares Dynamic MagniQuant Portfolio (PIQ)

	Six-Months Ended October 31, 2013 (Unaudited)			Year Ended April 30,
				2013			2012			2011			2010			2009
Per Share Operating Performance:
Net asset value at beginning of period	$	31.52		$	26.41		$	27.02		$	22.56		$	16.85		$	25.08
Net investment income(a)		0.15			0.48			0.18			0.19			0.09			0.14
Net realized and unrealized gain (loss) on investments		4.55			5.16			(0.62	)		4.45			5.71			(8.24	)
Total from investment operations		4.70			5.64			(0.44	)		4.64			5.80			(8.10	)
Distributions to shareholders from:
Net investment income		(0.16	)		(0.53	)		(0.17	)		(0.18	)		(0.09	)		(0.13	)
Net asset value at end of period	$	36.06		$	31.52		$	26.41		$	27.02		$	22.56		$	16.85
Market price at end of period(b)	$	36.09		$	31.47		$	26.40		$	27.03		$	22.56		$	16.84
Net Asset Value Total Return(c)		14.97	%		21.70	%		(1.55	)%		20.72	%		34.54	%		(32.40	)%
Market Price Total Return(c)		15.25	%		21.56	%		(1.63	)%		20.76	%		34.62	%		(32.41	)%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	19,832		$	18,915		$	18,484		$	27,024		$	27,073		$	28,651
Ratio to average net assets of:
Expenses, after Waivers		0.64	%(d)		0.65	%		0.65	%		0.65	%		0.65	%		0.65	%
Expenses, prior to Waivers		1.02	%(d)		1.19	%		1.22	%		1.08	%		0.98	%		0.87	%
Net investment income, after Waivers		0.88	%(d)		1.77	%		0.73	%		0.83	%		0.45	%		0.70	%
Portfolio turnover rate(e)		107	%		118	%		110	%		93	%		98	%		102	%

PowerShares Dynamic Market Portfolio (PWC)

	Six-Months Ended October 31, 2013 (Unaudited)			Year Ended April 30,
				2013			2012			2011			2010			2009
Per Share Operating Performance:
Net asset value at beginning of period	$	56.26		$	46.78		$	48.26		$	40.38		$	31.42		$	48.12
Net investment income(a)		0.31			0.82			0.44			0.57			0.33			0.50
Net realized and unrealized gain (loss) on investments		7.92			9.51			(1.52	)		7.94			8.97			(16.72	)
Total from investment operations		8.23			10.33			(1.08	)		8.51			9.30			(16.22	)
Distributions to shareholders from:
Net investment income		(0.36	)		(0.85	)		(0.40	)		(0.63	)		(0.34	)		(0.48	)
Net asset value at end of period	$	64.13		$	56.26		$	46.78		$	48.26		$	40.38		$	31.42
Market price at end of period(b)	$	64.27		$	56.23		$	46.75		$	48.24		$	40.38		$	31.41
Net Asset Value Total Return(c)		14.71	%		22.39	%		(2.12	)%		21.34	%		29.75	%		(33.86	)%
Market Price Total Return(c)		15.02	%		22.40	%		(2.14	)%		21.29	%		29.80	%		(33.84	)%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	153,923		$	140,658		$	128,644		$	188,207		$	230,151		$	260,779
Ratio to average net assets of:
Expenses, after Waivers		0.60	%(d)		0.60	%		0.60	%		0.60	%		0.60	%		0.60	%
Expenses, prior to Waivers		0.61	%(d)		0.60	%		0.62	%		0.64	%		0.60	%		0.60	%
Net investment income, after Waivers		1.04	%(d)		1.68	%		1.00	%		1.38	%		0.92	%		1.28	%
Portfolio turnover rate(e)		126	%		166	%		133	%		107	%		98	%		113	%

^(a)  Based on average shares outstanding.

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

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

^(d)  Annualized.

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

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

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Financial Highlights (continued)

PowerShares Dynamic OTC Portfolio (PWO)

	Six-Months Ended October 31, 2013 (Unaudited)			Year Ended April 30,
				2013			2012			2011			2010			2009
Per Share Operating Performance:
Net asset value at beginning of period	$	55.40		$	51.32		$	53.76		$	45.15		$	32.83		$	46.92
Net investment income(a)		0.18			0.71	(b)		0.10			0.07			0.01			0.03
Net realized and unrealized gain (loss) on investments		8.80			4.18			(2.50	)		8.65			12.36			(14.12	)
Total from investment operations		8.98			4.89			(2.40	)		8.72			12.37			(14.09	)
Distributions to shareholders from:
Net investment income		(0.19	)		(0.81	)		(0.04	)		(0.11	)		(0.05	)		—
Net asset value at end of period	$	64.19		$	55.40		$	51.32		$	53.76		$	45.15		$	32.83
Market price at end of period(c)	$	64.20		$	55.32		$	51.30		$	53.75		$	45.15		$	32.83
Net Asset Value Total Return(d)		16.23	%		9.75	%		(4.46	)%		19.34	%		37.73	%		(30.03	)%
Market Price Total Return(d)		16.41	%		9.63	%		(4.48	)%		19.31	%		37.73	%		(30.06	)%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	25,675		$	22,160		$	28,224		$	40,321		$	40,635		$	39,393
Ratio to average net assets of:
Expenses, after Waivers		0.59	%(e)(f)		0.60	%		0.60	%		0.60	%		0.60	%		0.59	%
Expenses, prior to Waivers		0.90	%(e)(f)		0.95	%		0.93	%		0.91	%		0.85	%		0.74	%
Net investment income, after Waivers		0.58	%(f)		1.42	%(b)		0.22	%		0.15	%		0.01	%		0.08	%
Portfolio turnover rate(g)		110	%		118	%		99	%		75	%		90	%		77	%

PowerShares FTSE RAFI US 1000 Portfolio (PRF)

	Six-Months Ended October 31, 2013 (Unaudited)			Year Ended April 30,
				2013			2012			2011			2010			2009
Per Share Operating Performance:
Net asset value at beginning of period	$	71.42		$	59.73		$	60.72		$	52.93		$	34.78		$	55.15
Net investment income(a)		0.70			1.31			1.12			1.07			0.62			0.97
Net realized and unrealized gain (loss) on investments		7.44			11.66			(0.99	)		7.63			18.21			(20.26	)
Total from investment operations		8.14			12.97			0.13			8.70			18.83			(19.29	)
Distributions to shareholders from:
Net investment income		(0.68	)		(1.28	)		(1.12	)		(0.91	)		(0.68	)		(1.08	)
Net asset value at end of period	$	78.88		$	71.42		$	59.73		$	60.72		$	52.93		$	34.78
Market price at end of period(c)	$	78.99		$	71.42		$	59.72		$	60.71		$	52.96		$	34.78
Net Asset Value Total Return(d)		11.47	%		22.06	%		0.41	%		16.72	%		54.57	%		(35.26	)%
Market Price Total Return(d)		11.63	%		22.09	%		0.41	%		16.63	%		54.66	%		(35.20	)%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	2,500,437		$	1,778,450		$	1,388,661		$	1,208,246		$	648,428		$	396,443
Ratio to average net assets of:
Expenses, after Waivers		0.39	%(f)		0.39	%		0.39	%		0.39	%		0.39	%		0.58	%
Expenses, prior to Waivers		0.41	%(f)		0.43	%		0.43	%		0.44	%		0.45	%		0.60	%
Net investment income, after Waivers		1.86	%(f)		2.10	%		2.00	%		2.01	%		1.38	%		2.34	%
Portfolio turnover rate(g)		2	%		13	%		6	%		9	%		24	%		15	%

^(a)  Based on average shares outstanding.

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

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

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

^(e)  In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the investment companies in which the Fund invests. Estimated investment company expenses are not expenses that are incurred directly by the Fund. They are expenses that are incurred directly by the investment companies and are deducted from the value of the funds that the Fund invests in. The effect of the estimated investment company expenses that you bear indirectly is included in the Fund’s total return.

^(f)  Annualized.

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

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

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Financial Highlights (continued)

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

	Six-Months Ended October 31, 2013 (Unaudited)			Year Ended April 30,
				2013			2012			2011			2010			2009
Per Share Operating Performance:
Net asset value at beginning of period	$	77.76		$	66.71		$	70.66		$	59.82		$	34.96		$	50.36
Net investment income(a)		0.52			1.13			0.73			0.50			0.32			0.46
Net realized and unrealized gain (loss) on investments		14.24			11.08			(4.04	)		10.80			24.88			(15.42	)
Total from investment operations		14.76			12.21			(3.31	)		11.30			25.20			(14.96	)
Distributions to shareholders from:
Net investment income		(0.57	)		(1.16	)		(0.64	)		(0.46	)		(0.34	)		(0.44	)
Net asset value at end of period	$	91.95		$	77.76		$	66.71		$	70.66		$	59.82		$	34.96
Market price at end of period(b)	$	92.08		$	77.67		$	66.72		$	70.64		$	59.79		$	34.90
Net Asset Value Total Return(c)		19.07	%		18.56	%		(4.60	)%		19.04	%		72.38	%(d)		(29.79	)%
Market Price Total Return(c)		19.37	%		18.41	%		(4.56	)%		19.06	%		72.59	%		(29.84	)%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	813,789		$	563,763		$	463,645		$	409,826		$	284,135		$	94,399
Ratio to average net assets of:
Expenses, after Waivers		0.39	%(e)		0.39	%		0.39	%		0.39	%		0.39	%		0.58	%
Expenses, prior to Waivers		0.42	%(e)		0.43	%		0.44	%		0.46	%		0.51	%		0.79	%
Net investment income, after Waivers		1.21	%(e)		1.64	%		1.17	%		0.82	%		0.67	%		1.22	%
Portfolio turnover rate(f)		4	%		30	%		15	%		19	%		16	%		15	%

^(a)  Based on average shares outstanding.

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

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

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

^(e)  Annualized.

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

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

44

Notes to Financial Statements

PowerShares Exchange-Traded Fund Trust

October 31, 2013

(Unaudited)

Note 1. Organization

PowerShares Exchange-Traded Fund Trust (the “Trust”) was organized as a Massachusetts business trust on June 9, 2000 and is authorized to have multiple series of portfolios. The Trust is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As of October 31, 2013, the Trust offered fifty-five portfolios. This report includes the following portfolios:

Full Name	Short Name
PowerShares Dynamic MagniQuant Portfolio (PIQ)	“Dynamic MagniQuant Portfolio”
PowerShares Dynamic Market Portfolio (PWC)	“Dynamic Market Portfolio”
PowerShares Dynamic OTC Portfolio (PWO)	“Dynamic OTC Portfolio”
PowerShares FTSE RAFI US 1000 Portfolio (PRF)	“FTSE RAFI US 1000 Portfolio”
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ)	“FTSE RAFI US 1500 Small-Mid Portfolio”

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

The market prices of each Fund’s Shares may differ to some degree from the Fund’s net asset value (“NAV”). Unlike conventional mutual funds, each Fund issues and redeems Shares on a continuous basis, at NAV, only in a large specified number of Shares, each called a “Creation Unit.” Creation Units are issued and redeemed generally in-kind for securities included in each Fund’s 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 generally correspond (before fees and expenses) to the price and yield of its respective index listed below (each, an “Underlying Index”):

Fund	Index
Dynamic MagniQuant Portfolio	Dynamic Top 200 IntellidexSM Index
Dynamic Market Portfolio	Dynamic Market IntellidexSM Index
Dynamic OTC Portfolio	Dynamic OTC IntellidexSM Index
FTSE RAFI US 1000 Portfolio	FTSE RAFI US 1000 Index
FTSE RAFI US 1500 Small-Mid Portfolio	FTSE RAFI US 1500 Small-Mid Index

Note 2. Significant Accounting Policies

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

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 and closed-end registered investment companies that do not trade on an exchange are valued at the end of day NAV per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.

45

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

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

Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.

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

Index 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 buy or sell a security unless that security is added or removed, respectively, from its respective Underlying Index even if that security generally is underperforming.

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

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

Non-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

46

rebalancing the Fund’s securities holdings to reflect changes in the composition of its Underlying Index. In addition, the performance of each Fund and its Underlying Index may vary due to asset valuation differences and differences between each Fund’s portfolio and its Underlying Index resulting from legal restrictions, cost or liquidity constraints.

Small and Medium Capitalization Company Risk. For Dynamic MagniQuant Portfolio, Dynamic OTC Portfolio and FTSE RAFI US 1500 Small-Mid Portfolio, investing in securities of small and medium capitalization companies involves greater risk than customarily is associated with investing in larger, more established companies. These companies’ securities may be more volatile and less liquid than those of more established companies. These securities may have returns that vary, sometimes significantly, from the overall securities market. Often small and medium capitalization companies and the industries in which they focus are still evolving and, as a result, they may be more sensitive to changing market conditions.

Over-the Counter Risk. For Dynamic OTC Portfolio, over-the-counter (“OTC”) transactions involve risks in addition to those associated with transactions in securities traded on exchanges. OTC-listed companies may have limited product lines, markets or financial resources. Many OTC stocks trade less frequently and in smaller volume than exchange-listed stocks. The values of these stocks may be more volatile than exchange-listed stocks.

C. Federal Income Taxes

Each Fund intends to comply with the provisions of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), applicable to regulated investment companies and to distribute substantially all of the Fund’s taxable earnings to its shareholders. As such, the Funds will not be subject to federal income taxes on otherwise taxable income (including net realized gains) that is distributed to the shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.

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

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

D. Investment Transactions and Investment Income

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

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

E. Expenses

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

Each Fund is responsible for all of its expenses, including the investment advisory fees, costs of transfer agency, custody, fund administration, legal, audit and other services, interest, taxes, brokerage commissions and other expenses connected with executions of portfolio transactions, sub-licensing fees related to its respective Underlying Index, any distribution fees or expenses, litigation expenses, fees payable to the Trust’s Board members who are not “interested persons” (as defined in the 1940 Act) of the Trust (the “Independent Trustees”) or the Adviser, expenses incurred in connection with the Board members’ services, including travel expenses and legal fees of counsel for the Independent Trustees, acquired fund fees and expenses, if any, and extraordinary expenses.

To the extent a Fund invests in other investment companies, the expenses shown in the accompanying financial statements reflect the expenses of the Fund and do not include any expenses of the investment companies in which it invests. The effects of such investment companies’ expenses are included in the realized and unrealized gain or loss on the investments in the investment companies.

F. Dividends and Distributions to Shareholders

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

G. Securities Lending

FTSE RAFI US 1000 Portfolio and FTSE RAFI US 1500 Small-Mid Portfolio may lend portfolio securities having a market value up to one-third of each Fund’s total assets. Such loans are secured by cash collateral equal to no less than 102% of the market value of the loaned

47

securities determined daily by the securities lending provider. Cash collateral received in connection with these loans is invested in an affiliated money market fund and is shown as such on the Schedule of Investments. It is the policy of these Funds to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. Lending securities entails a risk of loss to a Fund if, and to the extent that, the market value of the securities loaned were to increase, and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. A Fund could experience delays and costs in gaining access to the collateral. A Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, are included in Securities lending income on the Statements of Operations. The aggregate value of securities out on loan is shown on the Statements of Assets and Liabilities, if any.

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 for the selection and ongoing monitoring of the Funds’ investments, managing the Funds’ business affairs and providing certain clerical, bookkeeping and other administrative services. Each Fund (except for the FTSE RAFI US 1000 Portfolio and the FTSE RAFI US 1500 Small-Mid Portfolio) has agreed to pay the Adviser an annual fee of 0.50% of the Fund’s average daily net assets. Each of the FTSE RAFI US 1000 Portfolio and the FTSE RAFI US 1500 Small-Mid Portfolio has agreed to pay the Adviser an annual fee of 0.29% of the Fund’s average daily net assets.

The Adviser has entered into an Amended and Restated Excess Expense Agreement (the “Expense Agreement”) with the Trust. For the Dynamic MagniQuant Portfolio, the Adviser has agreed to waive fees and/or pay Fund expenses to the extent necessary to prevent the operating expenses (excluding interest expenses, brokerage commissions and other trading expenses, sub-licensing fees, offering costs, taxes, acquired fund fees and expenses, if any, and extraordinary expenses) of the Fund from exceeding 0.60% of the Fund’s average daily net assets per year (the “Expense Cap”), through at least August 31, 2014. The Expense Cap for the FTSE RAFI US 1000 Portfolio and the FTSE RAFI US 1500 Small-Mid Portfolio is 0.39% of each Fund’s average daily net assets per year, through at least August 31, 2014, and sub-licensing fees are included in the expenses subject to the Expense Cap. Offering costs excluded from the Expense Cap are: (a) initial legal fees pertaining to the Funds’ Shares offered for sale; (b) initial Securities and Exchange Commission and state registration fees; and (c) initial fees paid to be listed on an exchange. For the Dynamic Market Portfolio and the Dynamic OTC Portfolio, the Adviser has agreed to waive fees and/or pay Fund expenses to the extent necessary to prevent the operating expenses of each Fund (excluding interest expenses, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses, if any, and extraordinary expenses) from exceeding 0.60% of the Fund’s average daily net assets per year, through at least August 31, 2014. Unless the Adviser continues the fee waiver agreement, it will terminate on August 31, 2014. The fee waiver agreement cannot be terminated during its term.

Further, the Adviser has contractually agreed, through at least August 31, 2015, to waive the advisory fee payable by each Fund in an amount equal to 100% of the net advisory fees the Adviser’s affiliate receives from the affiliated money market funds on investments by a Fund (excluding investments of cash collateral from securities lending) in such affiliated money market funds.

For the six-months ended October 31, 2013, the Adviser waived fees and/or paid Fund expenses for each Fund, in the following amounts:

Dynamic MagniQuant Portfolio	$	36,555
Dynamic Market Portfolio		4,631
Dynamic OTC Portfolio		37,393
FTSE RAFI US 1000 Portfolio		229,428
FTSE RAFI US 1500 Small-Mid Portfolio		106,357

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

The amounts available for potential future recapture by the Adviser under the Excess Expense Agreement and the expiration schedule at October 31, 2013 are as follows:

	Total Potential Recapture Amounts		Potential Recapture Amounts Expiring
			04/30/14		04/30/15		04/30/16		10/31/16
Dynamic MagniQuant Portfolio	$	301,854	$	64,712	$	107,958	$	92,649	$	36,535
FTSE RAFI US 1000 Portfolio		1,435,923		266,301		420,812		519,689		229,121
FTSE RAFI US Portfolio 1500 Small-Mid Portfolio		639,641		135,481		186,171		211,738		106,251

48

The Trust has entered into a Distribution Agreement with Invesco Distributors, Inc. (the “Distributor”), which serves as the distributor of Creation Units for each Fund. The Distributor does not maintain a secondary market in the Shares. The Funds are not charged any fees pursuant to the Distribution Agreement. The Distributor is an affiliate of the Adviser.

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

Fund	Licensor
Dynamic MagniQuant Portfolio	NYSE Arca, Inc.
Dynamic Market Portfolio	NYSE Arca, Inc.
Dynamic OTC Portfolio	NYSE Arca, Inc.
FTSE RAFI US 1000 Portfolio	FTSE International Ltd.
FTSE RAFI US 1500 Small-Mid Portfolio	FTSE International Ltd.

Each Underlying Index name trademark is owned by its respective Licensor. These trademarks have been licensed to the Adviser for use with the Funds. Each Fund is entitled to use its Underlying Index pursuant to the Trust’s sub-licensing agreement with the Adviser. The Funds are required to pay the sub-licensing fees that are shown on the Statements of Operations. The Funds are not sponsored, endorsed, sold or promoted by the Licensors, and the Licensors make no representation regarding the advisability of investing in any of these Funds.

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

Note 4. Investments in Affiliates

Each Fund’s Adviser and Invesco Mortgage Capital, Inc. REIT are wholly-owned subsidiaries of Invesco Ltd., and therefore Invesco Ltd. and Invesco Mortgage Capital, Inc. REIT are considered to be affiliated. The table below shows the Fund’s transactions in, and earnings from, its investments in Invesco Ltd. and Invesco Mortgage Capital, Inc. REIT for the six-month period ended October 31, 2013.

FTSE RAFI US 1000 Portfolio

	Value April 30, 2013		Purchases at Cost		Proceeds from Sales			Change in Unrealized Appreciation (Depreciation)			Realized Gain		Value October 31, 2013		Dividend Income
Invesco Ltd.	$	1,352,664	$	416,994	$	(27,960	)	$	91,826		$	9,395	$	1,842,919	$	21,159
Invesco Mortgage Capital, Inc. REIT		215,926		48,759		(4,567	)		(63,730	)		1,526		197,914		11,795

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.

Except for the Fund listed below, as of October 31, 2013, the securities in each Fund were valued based on Level 1 inputs (see the Schedule of Investments for security categories). The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

	Investment in Securities
	Level 1		Level 2		Level 3		Total
FTSE RAFI US 1500 Small-Mid Portfolio
Equity Securities	$	863,674,932	$	0	$	—	$	863,674,932

49

Note 6. Tax Information

The amount and character of income and gains to be distributed are determined in accordance with federal income tax regulations, which may differ from GAAP. Reclassifications are made to the Funds’ capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under federal income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Funds’ 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. Capital losses generated in years beginning after December 22, 2010 can be carried forward for an unlimited period, whereas previous losses expire in 8 tax years. Capital losses with an expiration period may not be used to offset capital gains until all net capital losses without an expiration date have been utilized. Capital loss carryforwards with no expiration date will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The ability to utilize capital loss carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.

The following Funds had a capital loss carryforward as of April 30, 2013, which expires as follows:

													Post-effective no expiration
	2014		2015		2016		2017		2018		2019		Short-term		Long-term		Total*
Dynamic MagniQuant Portfolio	$	—	$	—	$	5,211,608	$	10,595,808	$	7,191,135	$	3,524,581	$	2,624,138	$	2,450,292	$	31,597,562
Dynamic Market Portfolio		13,686,812		65,552,628		39,899,556		96,635,542		104,214,879		15,461,574		35,337,138		237,165		371,025,294
Dynamic OTC Portfolio		5,449,844		21,767,708		11,353,752		15,764,010		14,947,690		3,683,431		8,046,056		126,379		81,138,870
FTSE RAFI US 1000 Portfolio		—		44,432		1,148,192		44,806,580		49,808,238		38,490,195		—		5,431,042		139,728,679
FTSE RAFI US 1500 Small-Mid Portfolio		—		5,818		128,460		8,229,508		5,168,127		2,475,894		—		1,694,731		17,702,538

* 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 October 31, 2013, the cost of securities purchased and proceeds from sales of securities, excluding short-term securities, money market funds and in-kind transactions, were as follows:

	Purchases		Sales
Dynamic MagniQuant Portfolio	$	20,550,673	$	20,417,689
Dynamic Market Portfolio		183,384,115		183,335,558
Dynamic OTC Portfolio		26,666,171		26,411,154
FTSE RAFI US 1000 Portfolio		46,057,380		44,129,286
FTSE RAFI US Portfolio 1500 Small-Mid Portfolio		29,496,625		28,627,350

For the six-month period ended October 31, 2013, in-kind transactions associated with creations and redemptions were as follows:

	Securities Received		Securities Delivered
Dynamic MagniQuant Portfolio	$	16,497,169	$	18,293,216
Dynamic Market Portfolio		136,285,781		143,061,967
Dynamic OTC Portfolio		20,676,364		20,968,449
FTSE RAFI US 1000 Portfolio		546,373,896		38,118,477
FTSE RAFI US Portfolio 1500 Small-Mid Portfolio		146,696,774		8,105,067

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

At October 31, 2013, 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.

50

At October 31, 2013, the aggregate cost and the net unrealized appreciation of investments on a tax basis including the adjustments for financial reporting purposes were as follows:

	Cost		Net Unrealized Appreciation		Gross Unrealized Appreciation		Gross Unrealized (Depreciation)
Dynamic MagniQuant Portfolio	$	17,803,450	$	2,102,035	$	2,335,223	$	(233,188	)
Dynamic Market Portfolio		139,333,259		14,694,984		16,081,917		(1,386,933	)
Dynamic OTC Portfolio		23,259,421		2,478,182		2,968,482		(490,300	)
FTSE RAFI US 1000 Portfolio		2,069,813,728		454,887,531		518,034,732		(63,147,201	)
FTSE RAFI US 1500 Small-Mid Portfolio		717,961,077		145,713,855		183,388,145		(37,674,290	)

Note 8. Trustees’ Fees

The Funds compensate each Independent Trustee. The Trustee who is an “interested person” (the “Non-Independent Trustee”) of the Trust does not receive any Trustees’ fees.

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

Note 9. Capital

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

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

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

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.

Note 11. Subsequent Event

At a meeting held on December 17, 2013, the Board of Trustees of the Trust approved the liquidation of PowerShares Dynamic Magniquant Portfolio, which is expected to commence on February 18, 2014. Investors, who have elected not to sell their shares before February 18, 2014, will receive cash equal to the amount of the net asset value of their shares, which will include any capital gains and dividends, on or about February 25, 2014.

In addition, the Board of Trustees of the Trust approved changes to the Fund name, investment objective, underlying index, and investment policies and strategies for PowerShares Dynamic OTC Portfolio. The Fund will be renamed PowerShares DWA NASDAQ Momentum Portfolio and the ticker will change from PWO to DWAQ. These changes are scheduled to take effect on February 19, 2014.

51

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Proxy Voting Policies and Procedures

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

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

Quarterly Portfolios

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

Frequency Distribution of Discounts and Premiums

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

©2013 Invesco PowerShares Capital Management LLC			P-PS-SAR-2
3500 Lacey Road, Suite 700 Downers Grove, IL 60515
invescopowershares.com    800.983.0903		@PowerShares

October 31, 2013

2013 Semi-Annual Report to Shareholders

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

Table of Contents

Fees and Expenses	3
Fundamental Pure and Style Portfolios
Schedules of Investments
PowerShares Dynamic Large Cap Growth Portfolio (PWB)	5
PowerShares Dynamic Large Cap Value Portfolio (PWV)	7
PowerShares Fundamental Pure Large Core Portfolio (PXLC)	9
PowerShares Fundamental Pure Large Growth Portfolio (PXLG)	11
PowerShares Fundamental Pure Large Value Portfolio (PXLV)	13
PowerShares Fundamental Pure Mid Core Portfolio (PXMC)	15
PowerShares Fundamental Pure Mid Growth Portfolio (PXMG)	18
PowerShares Fundamental Pure Mid Value Portfolio (PXMV)	20
PowerShares Fundamental Pure Small Core Portfolio (PXSC)	23
PowerShares Fundamental Pure Small Growth Portfolio (PXSG)	29
PowerShares Fundamental Pure Small Value Portfolio (PXSV)	35
PowerShares Zacks Micro Cap Portfolio (PZI)	43
Statements of Assets and Liabilities	48
Statements of Operations	50
Statements of Changes in Net Assets	52
Financial Highlights	56
Notes to Financial Statements	62

2

Fees and Expenses

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

The example is based on an investment of $1,000 invested at the beginning of the period and held through the six-month period ended October 31, 2013.

In pursuing its investment objective, each of PowerShares Zacks Micro Cap Portfolio and PowerShares Fundamental Pure Small Growth Portfolio (collectively, the “Portfolios”) may invest a portion of their assets in investment companies. The Portfolios indirectly bear a pro rata share of the fees and expenses of the investment companies in which the Portfolios invest. The investment companies’ expenses are not expenses that are incurred directly by the Portfolios. They are expenses that are incurred directly by the investment companies and are deducted from the value of the investment companies the Portfolios invest in. The effect of such expenses are included in each Portfolio’s total return.

Actual Expenses

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

Hypothetical Example for Comparison Purposes

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

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

	Beginning Account Value May 1, 2013		Ending Account Value October 31, 2013		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During the Six-Month Period(1)
PowerShares Dynamic Large Cap Growth Portfolio (PWB)
Actual	$	1,000.00	$	1,152.98		0.59	%	$	3.20
Hypothetical (5% return before expenses)		1,000.00		1,022.23		0.59			3.01
PowerShares Dynamic Large Cap Value Portfolio (PWV)
Actual		1,000.00		1,078.45		0.57			2.99
Hypothetical (5% return before expenses)		1,000.00		1,022.33		0.57			2.91
PowerShares Fundamental Pure Large Core Portfolio (PXLC)
Actual		1,000.00		1,120.70		0.39			2.08
Hypothetical (5% return before expenses)		1,000.00		1,023.24		0.39			1.99
PowerShares Fundamental Pure Large Growth Portfolio (PXLG)
Actual		1,000.00		1,099.13		0.39			2.06
Hypothetical (5% return before expenses)		1,000.00		1,023.24		0.39			1.99
PowerShares Fundamental Pure Large Value Portfolio (PXLV)
Actual		1,000.00		1,091.29		0.39			2.06
Hypothetical (5% return before expenses)		1,000.00		1,023.24		0.39			1.99
PowerShares Fundamental Pure Mid Core Portfolio (PXMC)
Actual		1,000.00		1,123.80		0.39			2.09
Hypothetical (5% return before expenses)		1,000.00		1,023.24		0.39			1.99

3

Fees and Expenses (continued)

	Beginning Account Value May 1, 2013		Ending Account Value October 31, 2013		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During the Six-Month Period(1)
PowerShares Fundamental Pure Mid Growth Portfolio (PXMG)
Actual	$	1,000.00	$	1,092.07		0.39	%	$	2.06
Hypothetical (5% return before expenses)		1,000.00		1,023.24		0.39			1.99
PowerShares Fundamental Pure Mid Value Portfolio (PXMV)
Actual		1,000.00		1,132.47		0.39			2.10
Hypothetical (5% return before expenses)		1,000.00		1,023.24		0.39			1.99
PowerShares Fundamental Pure Small Core Portfolio (PXSC)
Actual		1,000.00		1,141.40		0.38			2.05
Hypothetical (5% return before expenses)		1,000.00		1,023.29		0.38			1.94
PowerShares Fundamental Pure Small Growth Portfolio (PXSG)
Actual		1,000.00		1,155.53		0.39			2.12
Hypothetical (5% return before expenses)		1,000.00		1,023.24		0.39			1.99
PowerShares Fundamental Pure Small Value Portfolio (PXSV)
Actual		1,000.00		1,195.15		0.39			2.16
Hypothetical (5% return before expenses)		1,000.00		1,023.24		0.39			1.99
PowerShares Zacks Micro Cap Portfolio (PZI)
Actual		1,000.00		1,163.89		0.70			3.82
Hypothetical (5% return before expenses)		1,000.00		1,021.68		0.70			3.57

⁽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 October 31, 2013. Expenses are calculated by multiplying the Fund’s annualized expense ratio by the average account value for the period, then multiplying the result by 184/365.

4

Portfolio Composition

PowerShares Dynamic Large Cap Growth Portfolio (PWB)

Sector Breakdown (% of the Fund’s Net Assets) as of October 31, 2013 (Unaudited)
Consumer Discretionary	29.5
Information Technology	24.0
Health Care	9.9
Industrials	9.2
Financials	8.9
Energy	8.5
Consumer Staples	4.3
Materials	3.0
Telecommunication Services	2.7
Money Market Fund Plus Other Assets Less Liabilities	(0.0)

Schedule of Investments^(a)

PowerShares Dynamic Large Cap Growth Portfolio (PWB)

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks—100.0%
		Consumer Discretionary—29.5%
	43,031	Bed Bath & Beyond, Inc.(b)	$	3,327,157
	62,097	CBS Corp., Class B		3,672,417
	175,911	Comcast Corp., Class A		8,369,845
	78,465	Gap, Inc. (The)		2,902,420
	99,397	Home Depot, Inc. (The)		7,742,032
	56,311	Las Vegas Sands Corp.		3,954,158
	69,252	Lowe’s Cos., Inc.		3,447,365
	3,381	Priceline.com, Inc.(b)		3,562,999
	104,992	Starbucks Corp.		8,509,602
	29,560	Time Warner Cable, Inc.		3,551,634
	122,320	Time Warner, Inc.		8,408,277
	60,189	TJX Cos., Inc. (The)		3,658,889
	39,883	Viacom, Inc., Class B		3,321,855
	121,718	Walt Disney Co. (The)		8,348,638
				72,777,288
		Consumer Staples—4.3%
	28,364	Costco Wholesale Corp.		3,346,952
	34,509	Hershey Co. (The)		3,424,673
	75,016	Lorillard, Inc.		3,826,566
				10,598,191
		Energy—8.5%
	34,710	Anadarko Petroleum Corp.		3,307,516
	81,093	Cabot Oil & Gas Corp.		2,864,205
	122,944	Chesapeake Energy Corp.		3,437,514
	34,394	Continental Resources, Inc.(b)		3,917,476
	20,204	EOG Resources, Inc.		3,604,394
	51,655	Noble Energy, Inc.		3,870,509
				21,001,614

Number of Shares			Value
		Common Stocks (continued)
		Financials—8.9%
	66,571	Berkshire Hathaway, Inc., Class B(b)	$	7,660,991
	12,189	BlackRock, Inc.		3,666,573
	151,971	Charles Schwab Corp. (The)		3,442,143
	68,742	Franklin Resources, Inc.		3,702,444
	76,962	Marsh & McLennan Cos., Inc.		3,524,860
				21,997,011
		Health Care—9.9%
	52,894	Celgene Corp.(b)		7,854,230
	68,892	Cerner Corp.(b)		3,860,019
	122,848	Gilead Sciences, Inc.(b)		8,720,979
	26,135	McKesson Corp.		4,085,946
				24,521,174
		Industrials—9.2%
	160,829	Delta Air Lines, Inc.		4,242,669
	48,222	Union Pacific Corp.		7,300,811
	73,967	United Technologies Corp.		7,858,994
	12,829	W.W. Grainger, Inc.		3,450,616
				22,853,090
		Information Technology—24.0%
	194,434	Activision Blizzard, Inc.		3,235,382
	69,359	Adobe Systems, Inc.(b)		3,759,258
	148,110	eBay, Inc.(b)		7,806,878
	8,743	Google, Inc., Class A(b)		9,010,361
	12,217	MasterCard, Inc., Class A		8,760,811
	111,708	QUALCOMM, Inc.		7,760,355
	64,758	TE Connectivity Ltd. (Switzerland)		3,334,389

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

5

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

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks (continued)
		Information Technology (continued)
	83,067	Texas Instruments, Inc.	$	3,495,459
	42,450	Visa, Inc., Class A		8,348,642
	117,005	Yahoo!, Inc.(b)		3,852,975
				59,364,510
		Materials—3.0%
	34,736	Ecolab, Inc.		3,682,016
	20,313	PPG Industries, Inc.		3,708,747
				7,390,763
		Telecommunication Services—2.7%
	45,710	Crown Castle International Corp.(b)		3,474,874
	472,901	Sprint Corp. (Japan)(b)		3,182,624
				6,657,498
		Total Common Stocks (Cost $198,109,082)		247,161,139
		Money Market Fund—0.1%
	150,394	Premier Portfolio—Institutional Class(c) (Cost $150,394)		150,394
		Total Investments (Cost $198,259,476)—100.1%		247,311,533
		Other assets less liabilities—(0.1)%		(170,495	)
		Net Assets—100.0%	$	247,141,038

Notes to Schedule of Investments:

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

^(b)  Non-income producing security.

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

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

6

Portfolio Composition

PowerShares Dynamic Large Cap Value Portfolio (PWV)

Sector Breakdown (% of the Fund’s Net Assets) as of October 31, 2013 (Unaudited)
Financials	31.0
Energy	17.3
Health Care	15.0
Information Technology	10.7
Industrials	8.7
Telecommunication Services	6.7
Consumer Staples	6.4
Materials	1.4
Consumer Discretionary	1.4
Utilities	1.4
Other Assets Less Liabilities	0.0

Schedule of Investments^(a)

PowerShares Dynamic Large Cap Value Portfolio (PWV)

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks—100.0%
		Consumer Discretionary—1.4%
	204,531	Macy’s, Inc.	$	9,430,924
		Consumer Staples—6.4%
	258,088	Archer-Daniels-Midland Co.		10,555,799
	248,288	Kroger Co. (The)		10,636,658
	290,541	Wal-Mart Stores, Inc.		22,299,022
				43,491,479
		Energy—17.3%
	176,066	Chevron Corp.		21,120,877
	319,816	ConocoPhillips		23,442,513
	121,407	Hess Corp.		9,858,249
	263,935	Marathon Oil Corp.		9,306,348
	125,324	Marathon Petroleum Corp.		8,980,718
	240,380	Occidental Petroleum Corp.		23,095,710
	159,148	Phillips 66		10,253,906
	255,765	Valero Energy Corp.		10,529,845
				116,588,166
		Financials—31.0%
	103,596	ACE Ltd.		9,887,202
	157,249	Aflac, Inc.		10,218,040
	189,634	Allstate Corp. (The)		10,061,980
	456,388	American International Group, Inc.		23,572,440
	305,561	Bank of New York Mellon Corp. (The)		9,716,840
	109,263	Chubb Corp. (The)		10,060,937
	438,730	Citigroup, Inc.		21,401,249
	192,324	Discover Financial Services		9,977,769
	496,848	Fifth Third Bancorp		9,455,018
	139,381	Goldman Sachs Group, Inc. (The)		22,420,828
	419,627	JPMorgan Chase & Co.		21,627,576
	196,740	MetLife, Inc.		9,307,769

Number of Shares			Value
		Common Stocks (continued)
		Financials (continued)
	121,360	Prudential Financial, Inc.	$	9,877,490
	113,735	Travelers Cos., Inc. (The)		9,815,331
	516,158	Wells Fargo & Co.		22,034,785
				209,435,254
		Health Care—15.0%
	194,841	Agilent Technologies, Inc.		9,890,129
	180,734	Cardinal Health, Inc.		10,601,856
	115,484	Cigna Corp.		8,889,958
	176,797	Eli Lilly & Co.		8,808,027
	237,949	HCA Holdings, Inc.		11,216,916
	751,640	Pfizer, Inc.		23,060,315
	295,564	UnitedHealth Group, Inc.		20,175,199
	106,733	WellPoint, Inc.		9,050,958
				101,693,358
		Industrials—8.7%
	73,762	Cummins, Inc.		9,369,249
	109,157	General Dynamics Corp.		9,456,271
	74,230	Lockheed Martin Corp.		9,897,828
	98,485	Northrop Grumman Corp.		10,588,122
	169,509	PACCAR, Inc.		9,424,701
	120,507	Raytheon Co.		9,926,162
				58,662,333
		Information Technology—10.7%
	406,775	Hewlett-Packard Co.		9,913,107
	964,684	Intel Corp.		23,567,230
	116,331	International Business Machines Corp.		20,847,678
	354,834	Symantec Corp.		8,068,925
	146,569	Western Digital Corp.		10,205,599
				72,602,539

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

7

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

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks (continued)
		Materials—1.4%
	129,540	LyondellBasell Industries NV, Class A	$	9,663,684
		Telecommunication Services—6.7%
	626,774	AT&T, Inc.		22,689,219
	447,527	Verizon Communications, Inc.		22,604,589
				45,293,808
		Utilities—1.4%
	280,298	Public Service Enterprise Group, Inc.		9,389,983
		Total Investments (Cost $581,179,265)—100.0%		676,251,528
		Other assets less liabilities—0.0%		94,406
		Net Assets—100.0%	$	676,345,934

Notes to Schedule of Investments:

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

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

8

Portfolio Composition

PowerShares Fundamental Pure Large Core Portfolio (PXLC)

Sector Breakdown (% of the Fund’s Net Assets) as of October 31, 2013 (Unaudited)
Financials	22.8
Health Care	20.9
Consumer Staples	14.4
Consumer Discretionary	13.6
Industrials	9.5
Information Technology	9.3
Energy	5.0
Materials	2.6
Utilities	1.9
Money Market Fund Plus Other Assets Less Liabilities	0.0

Schedule of Investments^(a)

PowerShares Fundamental Pure Large Core Portfolio (PXLC)

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks—100.0%
		Consumer Discretionary—13.6%
	4,486	DIRECTV(b)	$	280,330
	72,413	Ford Motor Co.		1,238,986
	16,173	General Motors Co.(b)		597,592
	7,684	Johnson Controls, Inc.		354,617
	1,924	Liberty Global PLC, Class A (United Kingdom)(b)		150,784
	6,281	McDonald’s Corp.		606,242
	738	Murphy USA, Inc.(b)		29,948
	2,841	News Corp., Class A(b)		50,002
	2,832	Time Warner Cable, Inc.		340,265
	11,406	Twenty-First Century Fox, Inc.		388,717
	9,282	Walt Disney Co. (The)		636,652
				4,674,135
		Consumer Staples—14.4%
	11,932	Archer-Daniels-Midland Co.		488,019
	2,612	Bunge Ltd.		214,524
	4,998	General Mills, Inc.		251,999
	4,023	Lorillard, Inc.		205,213
	21,159	Procter & Gamble Co. (The)		1,708,589
	9,796	Walgreen Co.		580,315
	19,487	Wal-Mart Stores, Inc.		1,495,627
				4,944,286
		Energy—5.0%
	3,196	Anadarko Petroleum Corp.		304,547
	9,445	Chesapeake Energy Corp.		264,082
	4,371	Hess Corp.		354,925
	3,391	Marathon Petroleum Corp.		242,999
	2,939	Murphy Oil Corp.		177,281
	6,489	Spectra Energy Corp.		230,814
	4,095	Williams Cos., Inc. (The)		146,232
				1,720,880

Number of Shares			Value
		Common Stocks (continued)
		Financials—22.8%
	3,254	ACE Ltd.	$	310,562
	4,720	Aflac, Inc.		306,706
	7,594	American Express Co.		621,189
	13,446	Bank of New York Mellon Corp. (The)		427,583
	14,765	Berkshire Hathaway, Inc., Class B(b)		1,699,156
	6,891	Capital One Financial Corp.		473,205
	7,891	Charles Schwab Corp. (The)		178,731
	4,095	Marsh & McLennan Cos., Inc.		187,551
	14,179	MetLife, Inc.		670,808
	6,181	PNC Financial Services Group, Inc.		454,489
	3,821	State Street Corp.		267,737
	52,520	Wells Fargo & Co.		2,242,079
				7,839,796
		Health Care—20.9%
	21,349	Abbott Laboratories		780,306
	7,957	AbbVie, Inc.		385,517
	4,495	Aetna, Inc.		281,836
	5,746	AmerisourceBergen Corp.		375,386
	3,199	Baxter International, Inc.		210,718
	15,342	Bristol-Myers Squibb Co.		805,762
	2,385	Cigna Corp.		183,597
	9,037	Eli Lilly & Co.		450,223
	20,714	Johnson & Johnson		1,918,324
	3,680	McKesson Corp.		575,331
	7,814	Medtronic, Inc.		448,524
	11,176	UnitedHealth Group, Inc.		762,874
				7,178,398
		Industrials—9.5%
	4,684	3M Co.		589,481
	8,584	CSX Corp.		223,699

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

9

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

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks (continued)
		Industrials (continued)
	2,822	Deere & Co.	$	230,953
	6,046	Emerson Electric Co.		404,901
	2,637	FedEx Corp.		345,447
	5,055	Honeywell International, Inc.		438,420
	3,779	Illinois Tool Works, Inc.		297,747
	7,030	United Technologies Corp.		746,938
				3,277,586
		Information Technology—9.3%
	2,919	Automatic Data Processing, Inc.		218,837
	50,423	Intel Corp.		1,231,834
	5,918	International Business Machines Corp.		1,060,565
	3,699	TE Connectivity Ltd. (Switzerland)		190,462
	7,222	Texas Instruments, Inc.		303,902
	21,149	Xerox Corp.		210,221
				3,215,821
		Materials—2.6%
	1,765	Air Products & Chemicals, Inc.		192,403
	8,732	E.I. du Pont de Nemours & Co.		534,398
	1,009	PPG Industries, Inc.		184,223
				911,024
		Utilities—1.9%
	5,994	Duke Energy Corp.		429,949
	6,933	PPL Corp.		212,358
				642,307
		Total Common Stocks (Cost $28,085,698)		34,404,233
		Money Market Fund—0.1%
	41,047	Premier Portfolio—Institutional Class(c) (Cost $41,047)		41,047
		Total Investments (Cost $28,126,745)—100.1%		34,445,280
		Other assets less liabilities—(0.1)%		(34,088	)
		Net Assets—100.0%	$	34,411,192

Notes to Schedule of Investments:

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

^(b)  Non-income producing security.

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

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

10

Portfolio Composition

PowerShares Fundamental Pure Large Growth Portfolio (PXLG)

Sector Breakdown (% of the Fund’s Net Assets) as of October 31, 2013 (Unaudited)
Information Technology	30.4
Consumer Staples	18.0
Energy	15.1
Health Care	11.9
Consumer Discretionary	8.7
Materials	5.7
Industrials	4.5
Financials	4.5
Telecommunication Services	1.2
Money Market Fund Plus Other Assets Less Liabilities	0.0

Schedule of Investments^(a)

PowerShares Fundamental Pure Large Growth Portfolio (PXLG)

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—8.7%
	2,704	Amazon.com, Inc.(b)	$	984,337
	79,855	Comcast Corp., Class A		3,799,501
	15,589	NIKE, Inc., Class B		1,181,023
	15,303	TJX Cos., Inc. (The)		930,269
	10,797	Viacom, Inc., Class B		899,282
	9,225	Yum! Brands, Inc.		623,795
				8,418,207
		Consumer Staples—18.0%
	100,109	Coca-Cola Co. (The)		3,961,313
	19,603	Colgate-Palmolive Co.		1,268,902
	16,753	Costco Wholesale Corp.		1,976,854
	49,772	CVS Caremark Corp.		3,098,805
	44,873	PepsiCo, Inc.		3,773,371
	37,244	Philip Morris International, Inc.		3,319,185
				17,398,430
		Energy—15.1%
	18,708	Apache Corp.		1,661,270
	19,353	Baker Hughes, Inc.		1,124,216
	5,490	EOG Resources, Inc.		979,416
	26,718	Halliburton Co.		1,416,856
	13,566	National Oilwell Varco, Inc.		1,101,288
	31,919	Occidental Petroleum Corp.		3,066,777
	35,306	Phillips 66		2,274,766
	31,035	Schlumberger Ltd.		2,908,600
				14,533,189
		Financials—4.5%
	71,042	Annaly Capital Management, Inc. REIT		837,585
	3,475	BlackRock, Inc.		1,045,314

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	12,999	CME Group, Inc.	$	964,656
	14,652	Discover Financial Services		760,146
	4,447	Simon Property Group, Inc. REIT		687,284
				4,294,985
		Health Care—11.9%
	12,983	Amgen, Inc.		1,506,028
	11,828	Covidien PLC		758,293
	14,696	Express Scripts Holding Co.(b)		918,794
	15,199	Gilead Sciences, Inc.(b)		1,078,977
	11,536	Humana, Inc.		1,063,042
	1,473	Mallinckrodt PLC(b)		61,881
	109,824	Merck & Co., Inc.		4,951,964
	11,295	Thermo Fisher Scientific, Inc.		1,104,425
				11,443,404
		Industrials—4.5%
	23,387	Caterpillar, Inc.		1,949,540
	10,876	Danaher Corp.		784,051
	10,915	Union Pacific Corp.		1,652,531
				4,386,122
		Information Technology—30.4%
	11,827	Accenture PLC, Class A		869,285
	11,892	Apple, Inc.		6,211,786
	116,949	Cisco Systems, Inc.		2,631,352
	71,791	Corning, Inc.		1,226,908
	17,195	eBay, Inc.(b)		906,348
	51,452	EMC Corp.		1,238,450
	3,232	Google, Inc., Class A(b)		3,330,835
	222,759	Microsoft Corp.		7,874,531

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

11

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

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	61,633	Oracle Corp.	$	2,064,705
	26,568	QUALCOMM, Inc.		1,845,679
	5,685	Visa, Inc., Class A		1,118,069
				29,317,948
		Materials—5.7%
	51,920	Freeport-McMoRan Copper & Gold, Inc.		1,908,579
	15,353	LyondellBasell Industries NV, Class A		1,145,334
	9,414	Monsanto Co.		987,340
	21,475	Newmont Mining Corp.		585,409
	7,245	Praxair, Inc.		903,524
				5,530,186
		Telecommunication Services—1.2%
	34,402	CenturyLink, Inc.		1,164,852
		Total Common Stocks and Other Equity Interests (Cost $85,958,020)		96,487,323
		Money Market Fund—0.0%
	27,643	Premier Portfolio—Institutional Class(c) (Cost $27,643)		27,643
		Total Investments (Cost $85,985,663)—100.0%		96,514,966
		Other assets less liabilities—(0.0)%		(24,699	)
		Net Assets—100.0%	$	96,490,267

Investment Abbreviations:

REIT—Real Estate Investment Trust

Notes to Schedule of Investments:

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

^(b)  Non-income producing security.

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

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

12

Portfolio Composition

PowerShares Fundamental Pure Large Value Portfolio (PXLV)

Sector Breakdown (% of the Fund’s Net Assets) as of October 31, 2013 (Unaudited)
Financials	26.5
Energy	19.2
Industrials	12.8
Telecommunication Services	9.4
Utilities	8.0
Health Care	6.9
Consumer Staples	6.3
Consumer Discretionary	5.7
Information Technology	2.8
Materials	2.4
Other Assets Less Liabilities	(0.0)

Schedule of Investments^(a)

PowerShares Fundamental Pure Large Value Portfolio (PXLV)

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—5.7%
	899	CBS Corp., Class B	$	53,167
	273	CST Brands, Inc.		8,802
	2,109	Home Depot, Inc. (The)		164,270
	2,358	Lowe’s Cos., Inc.		117,381
	1,021	Macy’s, Inc.		47,078
	3,117	Staples, Inc.		50,246
	1,677	Target Corp.		108,653
	2,115	Time Warner, Inc.		145,385
				694,982
		Consumer Staples—6.3%
	4,953	Altria Group, Inc.		184,400
	889	ConAgra Foods, Inc.		28,279
	482	Kellogg Co.		30,487
	695	Kimberly-Clark Corp.		75,060
	1,186	Kraft Foods Group, Inc.		64,495
	2,531	Kroger Co. (The)		108,428
	5,386	Mondelez International, Inc., Class A		181,185
	767	Reynolds American, Inc.		39,401
	1,751	Sysco Corp.		56,627
				768,362
		Energy—19.2%
	5,169	Chevron Corp.		620,073
	6,291	ConocoPhillips		461,130
	1,050	Devon Energy Corp.		66,381
	10,670	Exxon Mobil Corp.		956,245
	2,902	Marathon Oil Corp.		102,325
	2,415	Valero Energy Corp.		99,426
	3,007	Weatherford International Ltd.(b)		49,435
				2,355,015

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials—26.5%
	1,417	Allstate Corp. (The)	$	75,186
	1,240	American International Group, Inc.		64,046
	51,323	Bank of America Corp.		716,469
	2,039	BB&T Corp.		69,265
	642	Chubb Corp. (The)		59,115
	10,247	Citigroup, Inc.		499,849
	2,552	Fifth Third Bancorp		48,565
	1,110	Goldman Sachs Group, Inc. (The)		178,555
	2,687	Hartford Financial Services Group, Inc. (The)		90,552
	10,893	JPMorgan Chase & Co.		561,425
	3,035	KeyCorp		38,029
	1,052	Lincoln National Corp.		47,771
	912	Loews Corp.		44,059
	4,373	Morgan Stanley		125,636
	1,483	Progressive Corp. (The)		38,513
	1,717	Prudential Financial, Inc.		139,747
	5,197	Regions Financial Corp.		50,047
	1,983	SunTrust Banks, Inc.		66,708
	1,285	Travelers Cos., Inc. (The)		110,895
	3,873	U.S. Bancorp		144,695
	2,464	Weyerhaeuser Co. REIT		74,906
				3,244,033
		Health Care—6.9%
	4,729	Boston Scientific Corp.(b)		55,282
	1,910	Cardinal Health, Inc.		112,040
	1,326	HCA Holdings, Inc.		62,508
	15,743	Pfizer, Inc.		482,995
	1,525	WellPoint, Inc.		129,320
				842,145

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

13

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

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrials—12.8%
	1,257	Boeing Co. (The)	$	164,038
	1,007	General Dynamics Corp.		87,236
	26,461	General Electric Co.		691,691
	912	Lockheed Martin Corp.		121,606
	648	Norfolk Southern Corp.		55,741
	985	Northrop Grumman Corp.		105,897
	668	PACCAR, Inc.		37,141
	969	Raytheon Co.		79,817
	1,645	Tyco International Ltd.		60,125
	1,135	United Parcel Service, Inc., Class B		111,502
	1,244	Waste Management, Inc.		54,164
				1,568,958
		Information Technology—2.8%
	2,471	Applied Materials, Inc.		44,107
	10,083	Hewlett-Packard Co.		245,723
	3,325	Micron Technology, Inc.(b)		58,786
				348,616
		Materials—2.4%
	6,288	Alcoa, Inc.		58,290
	3,528	Dow Chemical Co. (The)		139,250
	1,040	International Paper Co.		46,394
	972	Nucor Corp.		50,321
				294,255
		Telecommunication Services—9.4%
	18,338	AT&T, Inc.		663,836
	3,046	Sprint Corp. (Japan)(b)		20,499
	9,216	Verizon Communications, Inc.		465,500
				1,149,835
		Utilities—8.0%
	3,204	AES Corp. (The)		45,144
	1,069	Ameren Corp.		38,676
	1,427	American Electric Power Co., Inc.		66,841
	910	Consolidated Edison, Inc.		52,980
	1,298	Dominion Resources, Inc.		82,748
	516	DTE Energy Co.		35,676
	950	Edison International		46,579
	796	Entergy Corp.		51,517
	3,173	Exelon Corp.		90,557
	1,573	FirstEnergy Corp.		59,570
	956	NextEra Energy, Inc.		81,021
	1,284	NRG Energy, Inc.		36,633
	1,391	PG&E Corp.		58,213
	1,728	Public Service Enterprise Group, Inc.		57,888
	467	Sempra Energy		42,562
	2,137	Southern Co. (The)		87,425
	1,402	Xcel Energy, Inc.		40,462
				974,492
		Total Investments (Cost $10,786,459)—100.0%		12,240,693
		Other assets less liabilities—(0.0)%		(12	)
		Net Assets—100.0%	$	12,240,681

Investment Abbreviations:

REIT—Real Estate Investment Trust

Notes to Schedule of Investments:

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

^(b)  Non-income producing security.

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

14

Portfolio Composition

PowerShares Fundamental Pure Mid Core Portfolio (PXMC)

Sector Breakdown (% of the Fund’s Net Assets) as of October 31, 2013 (Unaudited)
Financials	19.0
Consumer Discretionary	18.6
Industrials	17.5
Information Technology	12.7
Health Care	10.7
Energy	7.1
Consumer Staples	4.5
Materials	4.2
Utilities	4.1
Telecommunication Services	1.5
Money Market Fund Plus Other Assets Less Liabilities	0.1

Schedule of Investments^(a)

PowerShares Fundamental Pure Mid Core Portfolio (PXMC)

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—99.9%
		Consumer Discretionary—18.6%
	1,343	Advance Auto Parts, Inc.	$	133,199
	457	AutoZone, Inc.(b)		198,653
	4,209	Bed Bath & Beyond, Inc.(b)		325,440
	1,608	BorgWarner, Inc.		165,833
	11,384	Cablevision Systems Corp., Class A		177,021
	4,440	CarMax, Inc.(b)		208,636
	7,532	Dana Holding Corp.		147,627
	4,153	Darden Restaurants, Inc.		214,004
	5,379	DISH Network Corp., Class A		259,268
	2,901	Dollar Tree, Inc.(b)		169,418
	1,473	Expedia, Inc.		86,730
	2,058	Family Dollar Stores, Inc.		141,755
	3,373	Garmin Ltd.		157,688
	16,558	Goodyear Tire & Rubber Co. (The)		347,387
	10,368	Interpublic Group of Cos., Inc. (The)		174,182
	7,598	Kohl’s Corp.		431,566
	6,010	Mattel, Inc.		266,664
	3,337	Nordstrom, Inc.		201,788
	1,772	PetSmart, Inc.		128,931
	1,831	Rent-A-Center, Inc.		62,694
	1,746	Tiffany & Co.		138,231
	1,452	VF Corp.		312,180
	1,770	Visteon Corp.(b)		136,449
	2,162	Wyndham Worldwide Corp.		143,557
				4,728,901
		Consumer Staples—4.5%
	1,552	Brown-Forman Corp., Class B		113,265
	2,414	Clorox Co. (The)		217,719
	4,178	Dr Pepper Snapple Group, Inc.		197,828

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Staples (continued)
	1,484	Energizer Holdings, Inc.	$	145,595
	2,447	Hershey Co. (The)		242,840
	2,317	Hormel Foods Corp.		100,697
	1,777	McCormick & Co., Inc.,		122,880
				1,140,824
		Energy—7.1%
	25,382	Alpha Natural Resources, Inc.(b)		177,674
	1,557	Cimarex Energy Co.		164,030
	5,716	CONSOL Energy, Inc.		208,634
	3,562	Diamond Offshore Drilling, Inc.		220,595
	6,718	Kinder Morgan, Inc.		237,213
	2,538	Linn Co LLC		74,846
	7,632	Noble Corp.		287,726
	1,289	Oil States International, Inc.(b)		140,024
	11,161	Peabody Energy Corp.		217,416
	3,188	Superior Energy Services, Inc.(b)		85,534
				1,813,692
		Financials—19.0%
	4,855	Ameriprise Financial, Inc.		488,122
	2,583	Arthur J. Gallagher & Co.		122,563
	2,726	Boston Properties, Inc. REIT		282,141
	1,350	Camden Property Trust REIT		86,670
	4,593	CBRE Group, Inc., Class A(b)		106,695
	4,928	CIT Group, Inc.(b)		237,332
	5,499	Equity Residential REIT		287,928
	867	Federal Realty Investment Trust REIT		89,821
	14,591	First Niagara Financial Group, Inc.		160,939

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

15

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

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	2,098	First Republic Bank	$	107,145
	5,665	Franklin Resources, Inc.		305,117
	7,699	General Growth Properties, Inc. REIT		163,450
	9,406	Invesco Ltd.(c)		317,452
	755	Jones Lang LaSalle, Inc.		71,876
	8,020	Kimco Realty Corp. REIT		172,270
	2,081	Macerich Co. (The) REIT		123,216
	2,101	Moody’s Corp.		148,457
	2,976	MSCI, Inc.(b)		121,331
	3,899	NASDAQ OMX Group, Inc. (The)		138,142
	7,979	NYSE Euronext		351,236
	13,221	People’s United Financial, Inc.		190,779
	2,080	Raymond James Financial, Inc.		94,952
	1,962	Rayonier, Inc. REIT		92,253
	1,687	Regency Centers Corp. REIT		87,150
	2,005	Reinsurance Group of America, Inc.		142,716
	3,834	Vornado Realty Trust REIT		341,456
				4,831,209
		Health Care—10.7%
	4,676	Agilent Technologies, Inc.		237,354
	3,970	Becton, Dickinson and Co.		417,366
	1,066	C.R. Bard, Inc.		145,211
	3,251	DaVita HealthCare Partners, Inc.(b)		182,739
	1,870	DENTSPLY International, Inc.		88,077
	5,547	Forest Laboratories, Inc.(b)		260,875
	1,733	Henry Schein, Inc.(b)		194,841
	5,116	Hospira, Inc.(b)		207,300
	2,020	Laboratory Corp. of America Holdings(b)		203,818
	2,008	Owens & Minor, Inc.		75,139
	4,267	Tenet Healthcare Corp.(b)		201,360
	1,898	Universal Health Services, Inc., Class B		152,903
	1,849	WellCare Health Plans, Inc.(b)		123,291
	2,640	Zimmer Holdings, Inc.		230,921
				2,721,195
		Industrials—17.5%
	4,391	ADT Corp. (The)(b)		190,438
	2,785	AECOM Technology Corp.(b)		88,507
	3,366	AGCO Corp.		196,507
	1,067	Alliant Techsystems, Inc.		116,164
	3,270	C.H. Robinson Worldwide, Inc.		195,350
	1,086	Carlisle Cos., Inc.		78,931
	3,617	Dover Corp.		332,004
	1,215	EMCOR Group, Inc.		45,028
	4,523	Fluor Corp.		335,697
	2,782	Fortune Brands Home & Security, Inc.		119,849
	959	Hubbell, Inc., Class B		103,131
	6,265	Ingersoll-Rand PLC		423,075
	2,702	Iron Mountain, Inc.		71,711
	3,401	Jacobs Engineering Group, Inc.(b)		206,849
	5,308	KBR, Inc.		183,338
	3,359	Nielsen Holdings NV		132,479
	3,316	Oshkosh Corp.(b)		157,808
	3,190	Parker Hannifin Corp.		372,337
	2,056	Rockwell Automation, Inc.		227,003
	2,745	Rockwell Collins, Inc.		191,683

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrials (continued)
	1,102	Snap-On, Inc.	$	114,685
	5,505	Spirit Aerosystems Holdings, Inc., Class A(b)		146,929
	2,001	Timken Co. (The)		105,673
	2,302	URS Corp.		124,814
	749	W.W. Grainger, Inc.		201,459
				4,461,449
		Information Technology—12.7%
	5,360	Adobe Systems, Inc.(b)		290,512
	488	Alliance Data Systems Corp.(b)		115,685
	4,628	Analog Devices, Inc.		228,160
	2,196	Autodesk, Inc.(b)		87,642
	6,811	CA, Inc.		216,317
	4,849	Electronic Arts, Inc.(b)		127,286
	4,704	Fidelity National Information Services, Inc.		229,320
	2,289	Fiserv, Inc.(b)		239,727
	3,623	Harris Corp.		224,481
	10,606	Juniper Networks, Inc.(b)		197,696
	3,214	Linear Technology Corp.		132,224
	5,374	Maxim Integrated Products, Inc.		159,608
	11,620	NVIDIA Corp.		176,392
	6,945	Paychex, Inc.		293,496
	4,627	SanDisk Corp.		321,577
	4,002	Xilinx, Inc.		181,771
				3,221,894
		Materials—4.2%
	1,360	Albemarle Corp.		90,019
	3,325	Ball Corp.		162,559
	2,663	Celanese Corp., Series A		149,155
	1,240	International Flavors & Fragrances, Inc.		102,486
	2,101	Reliance Steel & Aluminum Co.		153,982
	1,015	Sherwin-Williams Co. (The)		190,820
	4,138	Southern Copper Corp. (Mexico)		115,657
	1,354	Valspar Corp. (The)		94,739
				1,059,417
		Telecommunication Services—1.5%
	44,720	Frontier Communications Corp.		197,215
	6,696	T-Mobile US, Inc. (Germany)(b)		185,680
				382,895
		Utilities—4.1%
	3,777	American Water Works Co., Inc.		161,920
	12,147	Calpine Corp.(b)		245,005
	7,707	CMS Energy Corp.		211,634
	5,401	Northeast Utilities		231,649
	4,962	Wisconsin Energy Corp.		208,950
				1,059,158
		Total Common Stocks and Other Equity Interests (Cost $21,293,110)		25,420,634

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

16

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

October 31, 2013

(Unaudited)

Number of Shares			Value
		Money Market Fund—0.3%
	73,894	Premier Portfolio—Institutional Class(d) (Cost $73,894)	$	73,894
		Total Investments (Cost $21,367,004)—100.2%		25,494,528
		Other assets less liabilities—(0.2)%		(53,693	)
		Net Assets—100.0%	$	25,440,835

Investment Abbreviations:

REIT—Real Estate Investment Trust

Notes to Schedule of Investments:

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

^(b)  Non-income producing security.

^(c)  Affiliated company. The Fund’s Advisor is a subsidiary of Invesco Ltd. and therefore, Invesco Ltd. is considered to be affiliated with the Fund. See Note 4.

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

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

17

Portfolio Composition

PowerShares Fundamental Pure Mid Growth Portfolio (PXMG)

Sector Breakdown (% of the Fund’s Net Assets) as of October 31, 2013 (Unaudited)
Financials	17.9
Industrials	16.8
Information Technology	14.9
Energy	13.2
Consumer Discretionary	12.2
Health Care	10.3
Materials	8.7
Consumer Staples	5.1
Telecommunication Services	0.8
Money Market Fund Plus Other Assets Less Liabilities	0.1

Schedule of Investments^(a)

PowerShares Fundamental Pure Mid Growth Portfolio (PXMG)

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—99.9%
		Consumer Discretionary—12.2%
	15,234	Coach, Inc.	$	772,059
	10,936	Discovery Communications, Inc., Class A(b)		972,429
	24,153	Dollar General Corp.(b)		1,395,560
	13,294	Jarden Corp.(b)		735,956
	14,605	Las Vegas Sands Corp.		1,025,563
	12,496	Lear Corp.		967,065
	7,445	O’Reilly Automotive, Inc.(b)		921,766
	3,863	PVH Corp.		481,214
	3,209	Ralph Lauren Corp.		531,539
	14,398	Ross Stores, Inc.		1,113,685
	10,286	Wynn Resorts Ltd.		1,710,048
				10,626,884
		Consumer Staples—5.1%
	7,891	Church & Dwight Co., Inc.		514,099
	9,776	Estee Lauder Cos., Inc. (The), Class A		693,705
	6,250	Ingredion, Inc.		411,000
	7,850	J.M. Smucker Co. (The)		872,998
	8,263	Mead Johnson Nutrition Co.		674,757
	20,399	Whole Foods Market, Inc.		1,287,789
				4,454,348
		Energy—13.2%
	18,150	Cameron International Corp.(b)		995,709
	5,259	Concho Resources, Inc.(b)		581,698
	44,824	Denbury Resources, Inc.(b)		851,208
	11,278	EQT Corp.		965,509
	12,151	FMC Technologies, Inc.(b)		614,233
	8,832	Helmerich & Payne, Inc.		684,922
	18,129	HollyFrontier Corp.		835,022
	23,836	Noble Energy, Inc.		1,786,031

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Energy (continued)
	6,152	Pioneer Natural Resources Co.	$	1,259,806
	22,020	QEP Resources, Inc.		727,981
	5,166	Range Resources Corp.		391,118
	24,632	Southwestern Energy Co.(b)		916,803
	11,864	Whiting Petroleum Corp.(b)		793,583
	4,724	World Fuel Services Corp.		180,221
				11,583,844
		Financials—17.9%
	2,649	Affiliated Managers Group, Inc.(b)		523,019
	6,716	Alexandria Real Estate Equities, Inc. REIT		441,778
	25,005	American Capital Agency Corp. REIT		543,109
	7,828	AvalonBay Communities, Inc. REIT		978,891
	14,294	BioMed Realty Trust, Inc. REIT		284,736
	179,554	Chimera Investment Corp. REIT		544,049
	7,830	Digital Realty Trust, Inc. REIT		373,178
	2,616	Essex Property Trust, Inc. REIT		421,176
	32,330	HCP, Inc. REIT		1,341,695
	15,632	Health Care REIT, Inc.		1,013,735
	3,352	IntercontinentalExchange, Inc.(b)		646,031
	19,661	Leucadia National Corp.		557,193
	47,106	MFA Financial, Inc. REIT		349,055
	40,789	Prologis, Inc. REIT		1,629,521
	8,266	Public Storage REIT		1,380,174
	8,898	Realty Income Corp. REIT		370,602
	16,711	Senior Housing Properties Trust REIT		411,759
	8,452	SL Green Realty Corp. REIT		799,306
	15,056	T. Rowe Price Group, Inc.		1,165,485

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

18

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

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	24,766	UDR, Inc. REIT	$	614,444
	19,460	Ventas, Inc. REIT		1,269,570
				15,658,506
		Health Care—10.3%
	8,873	Actavis PLC(b)		1,371,588
	9,563	Cerner Corp.(b)		535,815
	16,299	Endo Health Solutions, Inc.(b)		712,755
	25,605	Hologic, Inc.(b)		573,296
	969	Intuitive Surgical, Inc.(b)		359,984
	14,804	Life Technologies Corp.(b)		1,114,889
	25,412	Mylan, Inc.(b)		962,353
	24,426	St. Jude Medical, Inc.		1,401,808
	21,255	Stryker Corp.		1,569,894
	6,152	Varian Medical Systems, Inc.(b)		446,512
				9,048,894
		Industrials—16.8%
	10,880	AMETEK, Inc.		520,391
	7,996	B/E Aerospace, Inc.(b)		648,955
	14,833	Cummins, Inc.		1,884,088
	7,437	Equifax, Inc.		480,951
	17,762	Expeditors International of Washington, Inc.		804,441
	10,901	Fastenal Co.		542,870
	11,883	Flowserve Corp.		825,512
	10,371	Joy Global, Inc.		588,554
	5,661	Kansas City Southern		687,925
	7,137	Pall Corp.		574,671
	7,469	Precision Castparts Corp.		1,893,018
	23,149	Quanta Services, Inc.(b)		699,331
	26,590	Republic Services, Inc.		889,967
	4,511	Roper Industries, Inc.		572,040
	17,469	Stanley Black & Decker, Inc.		1,381,623
	3,312	TransDigm Group, Inc.		481,598
	21,512	United Continental Holdings, Inc.(b)		730,332
	13,737	Xylem, Inc.		473,927
				14,680,194
		Information Technology—14.9%
	36,553	Activision Blizzard, Inc.		608,242
	16,342	Altera Corp.		549,091
	7,283	Amphenol Corp., Class A		584,752
	28,793	Broadcom Corp., Class A		769,349
	73,563	Brocade Communications Systems, Inc.(b)		589,975
	6,960	Citrix Systems, Inc.(b)		395,189
	11,234	Cognizant Technology Solutions Corp., Class A(b)		976,572
	18,263	First Solar, Inc.(b)		918,081
	11,600	Intuit, Inc.		828,356
	12,983	KLA-Tencor Corp.		851,685
	13,605	Lam Research Corp.(b)		737,799
	27,130	NetApp, Inc.		1,052,915
	53,300	ON Semiconductor Corp.(b)		376,298
	11,278	Synopsys, Inc.(b)		411,083
	7,354	Teradata Corp.(b)		324,091
	28,477	Western Digital Corp.		1,982,853
	62,030	Western Union Co. (The)		1,055,751
				13,012,082

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Materials—8.7%
	5,784	Airgas, Inc.	$	630,861
	4,720	CF Industries Holdings, Inc.		1,017,632
	42,949	Cliffs Natural Resources, Inc.		1,102,930
	14,853	Ecolab, Inc.		1,574,418
	7,792	FMC Corp.		566,946
	27,384	Mosaic Co. (The)		1,255,556
	6,348	Rock-Tenn Co., Class A		679,300
	7,053	Sigma-Aldrich Corp.		609,591
	12,892	Walter Energy, Inc.		204,854
				7,642,088
		Telecommunication Services—0.8%
	8,810	Crown Castle International Corp.(b)		669,736
		Total Common Stocks and Other Equity Interests (Cost $72,751,952)		87,376,576
		Money Market Fund—0.2%
	145,237	Premier Portfolio—Institutional Class(c) (Cost $145,237)		145,237
		Total Investments (Cost $72,897,189)—100.1%		87,521,813
		Other assets less liabilities—(0.1)%		(91,248	)
		Net Assets—100.0%	$	87,430,565

Investment Abbreviations:

REIT—Real Estate Investment Trust

Notes to Schedule of Investments:

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

^(b)  Non-income producing security.

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

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

19

Portfolio Composition

PowerShares Fundamental Pure Mid Value Portfolio (PXMV)

Sector Breakdown (% of the Fund’s Net Assets) as of October 31, 2013 (Unaudited)
Financials	22.0
Consumer Discretionary	20.7
Industrials	12.3
Information Technology	11.0
Utilities	9.5
Materials	8.1
Consumer Staples	6.9
Energy	4.4
Health Care	3.7
Telecommunication Services	1.4
Other Assets Less Liabilities	0.0

Schedule of Investments^(a)

PowerShares Fundamental Pure Mid Value Portfolio (PXMV)

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—20.7%
	2,006	Abercrombie & Fitch Co., Class A	$	75,185
	4,124	American Eagle Outfitters, Inc.		63,881
	6,551	Apollo Group, Inc., Class A(b)		174,846
	2,417	Autoliv, Inc.		215,669
	3,143	AutoNation, Inc.(b)		151,587
	2,347	Big Lots, Inc.(b)		85,337
	7,452	Carnival Corp.		258,212
	905	Charter Communications, Inc., Class A(b)		121,487
	4,477	D.R. Horton, Inc.		84,839
	1,578	Domino’s Pizza, Inc.		105,821
	3,167	Foot Locker, Inc.		109,895
	7,485	GameStop Corp., Class A		410,328
	9,196	Gannett Co., Inc.		254,453
	5,607	Gap, Inc. (The)		207,403
	3,307	Genuine Parts Co.		260,691
	5,548	H&R Block, Inc.		157,785
	2,176	Hanesbrands, Inc.		148,229
	3,350	Harley-Davidson, Inc.		214,534
	2,678	Hasbro, Inc.		138,319
	6,696	International Game Technology		125,885
	13,497	J.C. Penney Co., Inc.(b)		101,228
	6,640	L Brands, Inc.		415,730
	3,602	Leggett & Platt, Inc.		107,124
	1,882	Lennar Corp., Class A		66,905
	12,814	Liberty Interactive Corp., Class A(b)		345,465
	3,231	Marriott International, Inc., Class A		145,653
	14,082	MGM Resorts International(b)		268,121
	1,147	Mohawk Industries, Inc.(b)		151,886
	6,441	Newell Rubbermaid, Inc.		190,847

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Discretionary (continued)
	72	NVR, Inc.(b)	$	66,047
	33,058	Office Depot, Inc.(b)		184,794
	6,731	OfficeMax, Inc.		100,830
	5,441	Omnicom Group, Inc.		370,587
	1,408	Penn National Gaming, Inc.(b)		82,382
	3,230	PulteGroup, Inc.(b)		57,010
	4,259	Royal Caribbean Cruises Ltd.		179,048
	4,956	Sears Holdings Corp.(b)		287,844
	4,366	Service Corp. International		78,632
	2,611	Starwood Hotels & Resorts Worldwide, Inc.		192,222
	2,389	Tenneco, Inc.(b)		126,784
	2,025	Toll Brothers, Inc.(b)		66,582
	4,651	TRW Automotive Holdings Corp.(b)		349,337
	164	Washington Post Co. (The), Class B		105,504
	2,632	Whirlpool Corp.		384,298
				7,789,246
		Consumer Staples—6.9%
	14,186	Avon Products, Inc.		248,255
	2,751	Beam, Inc.		185,142
	3,903	Campbell Soup Co.		166,151
	6,531	Coca-Cola Enterprises, Inc.		272,538
	2,299	Constellation Brands, Inc., Class A(b)		150,125
	7,400	Dean Foods Co.(b)		144,300
	7,497	Hillshire Brands Co.		246,126
	3,731	Molson Coors Brewing Co., Class B		201,474
	86,475	Rite Aid Corp.(b)		460,912
	12,040	Tyson Foods, Inc., Class A		333,147
	9,173	WhiteWave Foods Co., Class A(b)		183,552
				2,591,722

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

20

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

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Energy—4.4%
	21,918	Arch Coal, Inc.	$	92,932
	1,870	Energen Corp.		146,459
	2,542	Exterran Holdings, Inc.(b)		72,574
	3,023	Helix Energy Solutions Group, Inc.(b)		71,524
	9,316	McDermott International, Inc.(b)		65,864
	6,562	Newfield Exploration Co.(b)		199,813
	3,847	Patterson-UTI Energy, Inc.		93,328
	2,915	Rowan Cos. PLC, Class A(b)		105,173
	989	SEACOR Holdings, Inc.		96,724
	4,809	Tesoro Corp.		235,112
	1,595	Tidewater, Inc.		96,051
	1,377	Unit Corp.(b)		70,792
	14,309	WPX Energy, Inc.(b)		316,801
				1,663,147
		Financials—22.0%
	5,189	American Capital Ltd.(b)		72,698
	2,718	American Financial Group, Inc.		152,915
	101	American National Insurance Co.		10,208
	3,451	Apartment Investment & Management Co., Class A REIT		96,559
	6,045	Associated Banc-Corp.		98,292
	4,491	Assurant, Inc.		262,634
	5,041	Brandywine Realty Trust REIT		71,733
	9,292	CapitalSource, Inc.		121,539
	3,098	CBL & Associates Properties, Inc. REIT		61,371
	4,243	Cincinnati Financial Corp.		212,150
	9,022	CNO Financial Group, Inc.		140,563
	6,233	Comerica, Inc.		269,889
	1,846	Commerce Bancshares, Inc.		84,934
	2,952	CommonWealth REIT		71,940
	1,276	Cullen/Frost Bankers, Inc.		90,328
	4,334	DDR Corp. REIT		73,461
	7,028	Duke Realty Corp. REIT		116,454
	11,054	E*TRADE Financial Corp.(b)		186,923
	3,334	Federated Investors, Inc., Class B		90,418
	6,148	Fidelity National Financial, Inc., Class A		173,066
	2,904	First American Financial Corp.		75,097
	7,659	First Horizon National Corp.		81,568
	5,670	Fulton Financial Corp.		69,231
	1,630	Hanover Insurance Group, Inc. (The)		95,420
	2,497	HCC Insurance Holdings, Inc.		113,988
	4,597	Hospitality Properties Trust REIT		135,060
	13,009	Host Hotels & Resorts, Inc. REIT		241,317
	20,120	Hudson City Bancorp, Inc.		180,678
	25,696	Huntington Bancshares, Inc.		226,125
	726	Kemper Corp.		26,877
	4,847	Legg Mason, Inc.		186,464
	2,932	Liberty Property Trust REIT		109,041
	2,756	M&T Bank Corp.		310,133
	2,968	Mack-Cali Realty Corp. REIT		61,022
	183	Markel Corp.(b)		96,930
	5,127	McGraw Hill Financial, Inc.		357,249
	16,574	New York Community Bancorp, Inc.		268,665
	4,960	Northern Trust Corp.		279,843
	10,308	Old Republic International Corp.		173,071

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	5,274	PHH Corp.(b)	$	126,840
	5,290	Piedmont Office Realty Trust, Inc., Class A REIT		97,759
	2,876	Plum Creek Timber Co., Inc. REIT		130,570
	9,475	Principal Financial Group, Inc.		449,683
	3,106	Protective Life Corp.		143,124
	10,308	SLM Corp.		261,514
	1,322	StanCorp Financial Group, Inc.		77,866
	31,711	Synovus Financial Corp.		103,061
	5,160	TCF Financial Corp.		78,329
	2,528	Torchmark Corp.		184,190
	10,620	Unum Group		337,079
	6,459	Valley National Bancorp		62,975
	2,781	W.R. Berkley Corp.		122,114
	2,368	Weingarten Realty Investors REIT		75,137
	42	White Mountains Insurance Group Ltd.		24,531
	9,216	XL Group PLC		281,733
	6,150	Zions Bancorp.		174,476
				8,276,835
		Health Care—3.7%
	5,020	CareFusion Corp.(b)		194,625
	5,296	Community Health Systems, Inc.		231,064
	20,483	Health Management Associates, Inc., Class A(b)		262,592
	4,839	Health Net, Inc.(b)		147,106
	1,912	LifePoint Hospitals, Inc.(b)		98,736
	3,349	Omnicare, Inc.		184,697
	3,472	Quest Diagnostics, Inc.		208,008
	891	Teleflex, Inc.		82,132
				1,408,960
		Industrials—12.3%
	1,559	Alaska Air Group, Inc.		110,159
	6,881	Avis Budget Group, Inc.(b)		215,582
	2,084	Cintas Corp.		112,057
	1,928	Con-way, Inc.		79,434
	6,891	Delta Air Lines, Inc.		181,785
	5,153	Exelis, Inc.		84,973
	1,252	GATX Corp.		64,541
	2,463	General Cable Corp.		81,107
	3,099	Harsco Corp.		86,400
	10,661	Hertz Global Holdings, Inc.(b)		244,776
	1,790	Huntington Ingalls Industries, Inc.		128,074
	4,968	ITT Corp.		197,379
	12,045	JetBlue Airways Corp.(b)		85,399
	3,890	L-3 Communications Holdings, Inc.		390,750
	4,075	Manpowergroup, Inc.		318,257
	8,653	Masco Corp.		182,838
	4,142	Navistar International Corp.(b)		149,775
	3,561	Owens Corning(b)		127,947
	14,441	Pitney Bowes, Inc.		308,171
	16,009	R.R. Donnelley & Sons Co.		297,287
	2,021	Robert Half International, Inc.		77,869
	2,319	Ryder System, Inc.		152,660
	1,304	SPX Corp.		118,286
	3,395	Terex Corp.(b)		118,655
	7,712	Textron, Inc.		222,028

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

21

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

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrials (continued)
	1,798	Trinity Industries, Inc.	$	91,033
	1,558	United Rentals, Inc.(b)		100,631
	9,724	US Airways Group, Inc.(b)		213,636
	1,172	WESCO International, Inc.(b)		100,159
				4,641,648
		Information Technology—11.0%
	40,185	Advanced Micro Devices, Inc.(b)		134,218
	3,223	Amdocs Ltd.		123,924
	956	Anixter International, Inc.(b)		81,728
	3,681	AOL, Inc.(b)		133,399
	4,215	Arrow Electronics, Inc.(b)		202,404
	6,893	Avnet, Inc.(b)		273,652
	5,487	Computer Sciences Corp.		270,290
	4,875	CoreLogic, Inc.(b)		162,191
	2,311	Diebold, Inc.		69,238
	873	Insight Enterprises, Inc.(b)		18,394
	8,314	Jabil Circuit, Inc.		173,430
	3,913	Leidos Holdings, Inc.		184,263
	3,276	Lexmark International, Inc., Class A		116,462
	3,696	Microchip Technology, Inc.		158,780
	2,992	Molex, Inc.		115,491
	4,364	Motorola Solutions, Inc.		272,837
	3,033	NCR Corp.(b)		110,856
	3,332	Sanmina Corp.(b)		48,514
	2,236	Science Applications International Corp.		78,819
	6,670	Seagate Technology PLC		324,696
	10,276	Symantec Corp.		233,676
	909	SYNNEX Corp.(b)		55,722
	1,855	Tech Data Corp.(b)		96,571
	4,061	Total System Services, Inc.		121,140
	2,633	Unisys Corp.(b)		69,380
	5,503	Vishay Intertechnology, Inc.(b)		67,522
	14,078	Yahoo!, Inc.(b)		463,589
				4,161,186
		Materials—8.1%
	3,309	Allegheny Technologies, Inc.		109,528
	1,841	Ashland, Inc.		170,384
	3,428	Avery Dennison Corp.		161,527
	2,782	Bemis Co., Inc.		111,002
	1,826	Cabot Corp.		85,110
	6,535	Commercial Metals Co.		119,983
	3,671	Crown Holdings, Inc.(b)		160,056
	889	Cytec Industries, Inc.		73,867
	2,250	Eastman Chemical Co.		177,277
	6,921	Huntsman Corp.		160,706
	708	Martin Marietta Materials, Inc.		69,448
	4,939	MeadWestvaco Corp.		172,124
	6,491	Owens-Illinois, Inc.(b)		206,349
	1,754	Packaging Corp. of America		109,239
	1,427	Rockwood Holdings, Inc.		90,258
	3,081	RPM International, Inc.		119,296
	1,452	Scotts Miracle-Gro Co. (The), Class A		85,261
	5,724	Sealed Air Corp.		172,750
	2,487	Sonoco Products Co.		101,072

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Materials (continued)
	8,197	Steel Dynamics, Inc.	$	147,300
	12,034	United States Steel Corp.		299,526
	2,772	Vulcan Materials Co.		148,441
				3,050,504
		Telecommunication Services—1.4%
	36,366	NII Holdings, Inc.(b)		125,099
	4,160	Telephone & Data Systems, Inc.		129,709
	33,094	Windstream Holdings, Inc.		282,954
				537,762
		Utilities—9.5%
	2,713	AGL Resources, Inc.		129,844
	2,717	Alliant Energy Corp.		141,882
	2,489	Atmos Energy Corp.		110,188
	14,268	CenterPoint Energy, Inc.		350,993
	4,845	Great Plains Energy, Inc.		113,567
	1,944	Hawaiian Electric Industries, Inc.		51,652
	2,090	Integrys Energy Group, Inc.		122,641
	3,922	MDU Resources Group, Inc.		116,797
	1,714	National Fuel Gas Co.		122,637
	9,546	NiSource, Inc.		300,890
	6,983	NV Energy, Inc.		165,776
	4,791	OGE Energy Corp.		176,788
	5,493	ONEOK, Inc.		310,354
	11,762	Pepco Holdings, Inc.		226,771
	3,431	Pinnacle West Capital Corp.		192,239
	2,814	PNM Resources, Inc.		67,311
	2,554	Portland General Electric Co.		73,300
	4,162	Questar Corp.		98,473
	3,398	SCANA Corp.		158,449
	8,074	TECO Energy, Inc.		138,631
	3,684	UGI Corp.		152,407
	2,027	Vectren Corp.		70,783
	3,539	Westar Energy, Inc.		111,868
	1,739	WGL Holdings, Inc.		78,272
				3,582,513
		Total Investments (Cost $30,254,665)—100.0%		37,703,523
		Other assets less liabilities—0.0%		11,637
		Net Assets—100.0%	$	37,715,160

Investment Abbreviations:

REIT—Real Estate Investment Trust

Notes to Schedule of Investments:

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

^(b)  Non-income producing security.

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

22

Portfolio Composition

PowerShares Fundamental Pure Small Core Portfolio (PXSC)

Sector Breakdown (% of the Fund’s Net Assets) as of October 31, 2013 (Unaudited)
Financials	20.6
Industrials	17.4
Consumer Discretionary	16.4
Information Technology	13.4
Health Care	8.9
Consumer Staples	6.3
Energy	6.3
Materials	6.1
Utilities	2.6
Telecommunication Services	1.9
Money Market Fund Plus Other Assets Less Liabilities	0.1

Schedule of Investments^(a)

PowerShares Fundamental Pure Small Core Portfolio (PXSC)

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—99.9%
		Consumer Discretionary—16.4%
	2,064	American Axle & Manufacturing Holdings, Inc.(b)	$	38,411
	301	Ascent Capital Group, Inc., Class A(b)		25,410
	718	Bally Technologies, Inc.(b)		52,515
	201	Blue Nile, Inc.(b)		8,255
	535	Bravo Brio Restaurant Group, Inc.(b)		7,988
	1,100	Buckle, Inc. (The)		53,834
	2,217	Burger King Worldwide, Inc.		46,956
	1,042	Cabela’s, Inc.(b)		61,811
	442	Capella Education Co.(b)		26,927
	289	Carriage Services, Inc.		5,806
	1,027	Carter’s, Inc.		71,017
	138	Cavco Industries, Inc.(b)		8,083
	3,338	Chico’s FAS, Inc.		57,247
	407	Choice Hotels International, Inc.		18,962
	294	Churchill Downs, Inc.		25,258
	3,316	Cinemark Holdings, Inc.		108,798
	644	Core-Mark Holding Co., Inc.		45,550
	422	Destination Maternity Corp.		13,183
	1,814	DeVry, Inc.		65,123
	2,323	Digital Generation, Inc.(b)		29,386
	434	DineEquity, Inc.		35,618
	2,677	DreamWorks Animation SKG, Inc., Class A(b)		91,660
	1,050	Dunkin’ Brands Group, Inc.		50,064
	229	Einstein Noah Restaurant Group, Inc.		4,085
	846	Genesco, Inc.(b)		57,621
	3,459	Gentex Corp.		101,833
	589	G-III Apparel Group Ltd.(b)		33,408
	440	Gordmans Stores, Inc.		4,356
	2,912	Guess?, Inc.		91,000

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Discretionary (continued)
	379	Hibbett Sports, Inc.(b)	$	22,107
	1,841	Hillenbrand, Inc.		51,953
	651	HSN, Inc.		34,112
	338	Ignite Restaurant Group, Inc.(b)		5,428
	1,514	John Wiley & Sons, Inc., Class A		76,139
	871	Jos. A. Bank Clothiers, Inc.(b)		41,791
	808	Krispy Kreme Doughnuts, Inc.(b)		19,602
	1,139	LeapFrog Enterprises, Inc.(b)		9,750
	1,204	Life Time Fitness, Inc.(b)		54,686
	1,236	Lions Gate Entertainment Corp.(b)		42,741
	264	Loral Space & Communications, Inc.		18,842
	834	Madison Square Garden Co. (The), Class A(b)		50,474
	1,237	Marriott Vacations Worldwide Corp.(b)		61,949
	568	MDC Partners, Inc., Class A (Canada)		17,511
	906	Outerwall, Inc.(b)		58,872
	588	Overstock.com, Inc.(b)		13,777
	577	PetMed Express, Inc.		8,563
	1,149	Pier 1 Imports, Inc.		23,991
	80	Remy International, Inc.		1,762
	2,455	Sally Beauty Holdings, Inc.(b)		64,616
	967	Select Comfort Corp.(b)		17,715
	983	Six Flags Entertainment Corp.		36,971
	1,143	Smith & Wesson Holding Corp.(b)		12,322
	1,279	Sotheby’s		66,380
	723	Strayer Education, Inc.		28,580
	756	Tempur-Sealy International, Inc.(b)		28,993
	207	Tilly’s, Inc., Class A(b)		3,014
	1,068	Tupperware Brands Corp.		95,746

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

23

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

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Discretionary (continued)
	497	Universal Electronics, Inc.(b)	$	19,338
	654	Vail Resorts, Inc.		46,074
	2,244	Valassis Communications, Inc.		61,396
	1,712	Weight Watchers International, Inc. (Luxembourg)		54,972
	12,347	Wendy’s Co. (The)		107,295
	998	Wolverine World Wide, Inc.		57,625
	569	Zumiez, Inc.(b)		16,865
				2,572,117
		Consumer Staples—6.3%
	66	Alico, Inc.		2,637
	1,054	Andersons, Inc. (The)		78,186
	303	Calavo Growers, Inc.		8,996
	577	Cal-Maine Foods, Inc.		29,271
	1,609	Casey’s General Stores, Inc.		117,264
	1,098	Diamond Foods, Inc.(b)		26,802
	3,978	Flowers Foods, Inc.		100,803
	637	Hain Celestial Group, Inc. (The)(b)		53,018
	340	Inter Parfums, Inc.		11,954
	281	J & J Snack Foods Corp.		24,045
	1,075	Nu Skin Enterprises, Inc., Class A		125,700
	669	Sanderson Farms, Inc.		42,288
	7	Seaboard Corp.		19,110
	711	Spectrum Brands Holdings, Inc.		46,869
	1,270	Susser Holdings Corp.(b)		69,647
	1,086	TreeHouse Foods, Inc.(b)		79,560
	1,641	United Natural Foods, Inc.(b)		117,249
	160	USANA Health Sciences, Inc.(b)		10,917
	317	WD-40 Co.		22,979
	521	WhiteWave Foods Co., Class A(b)		10,425
				997,720
		Energy—6.3%
	2,042	Abraxas Petroleum Corp.(b)		5,901
	972	Berry Petroleum Co., Class A		46,413
	970	Bristow Group, Inc.		78,056
	816	Carrizo Oil & Gas, Inc.(b)		35,773
	269	Clayton Williams Energy, Inc.(b)		20,936
	1,411	Dresser-Rand Group, Inc.(b)		85,747
	464	Dril-Quip, Inc.(b)		54,483
	698	Goodrich Petroleum Corp.(b)		16,326
	1,521	Green Plains Renewable Energy, Inc.		24,534
	1,052	Matrix Service Co.(b)		21,871
	437	Mitcham Industries, Inc.(b)		7,272
	98	Panhandle Oil and Gas, Inc., Class A		3,290
	688	PDC Energy, Inc.(b)		46,653
	732	Rosetta Resources, Inc.(b)		43,876
	1,205	SemGroup Corp., Class A		72,770
	1,228	SM Energy Co.		108,813
	1,320	Targa Resources Corp.		102,379
	5,103	Ultra Petroleum Corp.(b)		93,691
	1,623	VAALCO Energy, Inc.(b)		8,553
	2,997	Warren Resources, Inc.(b)		9,381
	2,395	Western Refining, Inc.		77,287
	2,999	Willbros Group, Inc.(b)		29,270
				993,275

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials—20.6%
	967	Acadia Realty Trust REIT	$	25,790
	183	American Capital Mortgage Investment Corp. REIT		3,497
	9,940	Anworth Mortgage Asset Corp. REIT		48,805
	181	Apollo Residential Mortgage, Inc. REIT		2,726
	688	Bancorp, Inc. (The)(b)		11,125
	136	Bank of Kentucky Financial Corp. (The)		3,918
	125	Bank of Marin Bancorp		5,319
	999	BankUnited, Inc.		30,739
	1,330	BBCN Bancorp, Inc.		19,724
	699	Berkshire Hills Bancorp, Inc.		17,734
	184	BNC Bancorp		2,412
	1,809	BRE Properties, Inc. REIT		98,789
	147	Bridge Bancorp, Inc.		3,394
	2,222	Brown & Brown, Inc.		70,948
	332	Bryn Mawr Bank Corp.		9,250
	5,810	Capitol Federal Financial, Inc.		73,613
	5,792	Capstead Mortgage Corp. REIT		68,519
	840	Cash America International, Inc.		33,138
	242	Center Bancorp, Inc.		3,620
	578	Centerstate Banks, Inc.		5,699
	838	Citizens, Inc.(b)		7,039
	142	CNB Financial Corp.		2,841
	386	Cohen & Steers, Inc.		14,807
	1,153	Columbia Banking System, Inc.		29,621
	1,226	Community Bank System, Inc.		44,516
	3,042	Corporate Office Properties Trust REIT		74,833
	2,374	Corrections Corp. of America REIT		87,838
	2,168	CubeSmart REIT		39,609
	1,650	DFC Global Corp.(b)		19,965
	90	Diamond Hill Investment Group		9,924
	3,137	Douglas Emmett, Inc. REIT		78,205
	3,250	East West Bancorp, Inc.		109,493
	648	EastGroup Properties, Inc. REIT		41,252
	1,922	Eaton Vance Corp.		80,359
	1,972	Education Realty Trust, Inc. REIT		18,024
	567	Encore Capital Group, Inc.(b)		27,698
	330	Enterprise Financial Services Corp.		5,950
	1,420	EPR Properties REIT		72,945
	1,580	Equity One, Inc. REIT		38,094
	501	Erie Indemnity Co., Class A		35,982
	2,296	First Financial Bancorp		35,634
	621	First Financial Bankshares, Inc.		38,198
	300	First Financial Holdings, Inc.		17,979
	1,860	First Industrial Realty Trust, Inc. REIT(b)		33,610
	135	First of Long Island Corp. (The)		5,312
	2,074	First Potomac Realty Trust REIT		25,489
	1,048	Flushing Financial Corp.		21,054
	118	GAMCO Investors, Inc., Class A		8,438
	244	German American Bancorp, Inc.		6,632
	809	Getty Realty Corp. REIT		15,517
	772	Gladstone Investment Corp.		5,458
	2,918	Glimcher Realty Trust REIT		29,910
	595	Greenhill & Co., Inc.		30,524
	266	Heritage Financial Corp.		4,291
	4,757	Hersha Hospitality Trust REIT		26,972

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

24

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

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	271	Home Federal Bancorp, Inc.	$	4,225
	1,237	Home Properties, Inc. REIT		74,603
	668	Independent Bank Corp.		23,968
	1,233	Kilroy Realty Corp. REIT		65,546
	510	Lakeland Financial Corp.		18,151
	2,370	LaSalle Hotel Properties REIT		73,589
	5,124	Lexington Realty Trust REIT		59,951
	1,740	LPL Financial Holdings, Inc.		70,888
	525	LTC Properties, Inc. REIT		20,711
	467	Manning & Napier, Inc.		7,752
	211	Marlin Business Services Corp.		5,817
	3,060	Meadowbrook Insurance Group, Inc.		20,318
	417	Medley Capital Corp.		5,813
	907	Mid-America Apartment Communities, Inc. REIT		60,225
	134	MidWestOne Financial Group, Inc.		3,540
	851	Monmouth Real Estate Investment Corp., Class A REIT		7,846
	237	National Health Investors, Inc. REIT		14,817
	167	National Interstate Corp.		4,364
	693	New York Mortgage Trust, Inc. REIT		4,449
	477	NewStar Financial, Inc.(b)		8,305
	289	Nicholas Financial, Inc.		4,638
	5,353	NorthStar Realty Finance Corp. REIT		49,943
	210	OmniAmerican Bancorp, Inc.(b)		4,603
	283	Pacific Premier Bancorp, Inc.(b)		3,937
	804	Park Sterling Corp.		5,234
	956	Pinnacle Financial Partners, Inc.(b)		29,636
	1,055	Post Properties, Inc. REIT		48,256
	1,694	PrivateBancorp, Inc.		41,266
	1,394	ProAssurance Corp.		63,176
	416	PS Business Parks, Inc. REIT		33,900
	4,485	Resource Capital Corp. REIT		27,583
	694	Rockville Financial, Inc.		9,126
	1,118	Ryman Hospitality Properties, Inc. REIT		41,265
	535	Safeguard Scientifics, Inc.(b)		9,336
	296	Saul Centers, Inc. REIT		13,912
	2,314	SEI Investments Co.		76,802
	337	Select Income REIT		9,284
	681	Southside Bancshares, Inc.		18,591
	649	Sovran Self Storage, Inc. REIT		49,642
	1,308	Spirit Realty Capital, Inc. REIT		13,682
	550	St. Joe Co. (The)(b)		10,269
	1,221	Summit Hotel Properties, Inc. REIT		11,221
	596	Sun Communities, Inc. REIT		26,564
	824	Taubman Centers, Inc. REIT		54,211
	3,930	TD Ameritrade Holding Corp.		107,132
	1,205	TFS Financial Corp.(b)		14,629
	547	Thomas Properties Group, Inc.		3,720
	2,416	Tower Group International Ltd.		8,770
	1,070	UMB Financial Corp.		63,044
	437	United Financial Bancorp, Inc.		6,852
	139	Universal Health Realty Income Trust REIT		6,105
	2,328	Washington REIT		61,017
	233	Washington Banking Co.		3,963
	1,498	Western Alliance Bancorp(b)		31,683
	337	Whitestone REIT		4,647

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	340	World Acceptance Corp.(b)	$	35,401
				3,240,690
		Health Care—8.9%
	3,774	Alere, Inc.(b)		127,297
	497	Almost Family, Inc.		9,557
	221	Analogic Corp.		20,383
	999	AngioDynamics, Inc.(b)		15,704
	453	ArthroCare Corp.(b)		16,960
	551	Bio-Rad Laboratories, Inc., Class A(b)		68,060
	2,060	BioScrip, Inc.(b)		14,441
	2,416	Brookdale Senior Living, Inc.(b)		65,425
	350	Capital Senior Living Corp.(b)		7,763
	443	Chemed Corp.		30,044
	288	Chindex International, Inc.(b)		4,847
	208	Computer Programs & Systems, Inc.		11,864
	600	Cooper Cos., Inc. (The)		77,526
	271	CorVel Corp.(b)		11,274
	1,300	Covance, Inc.(b)		116,038
	742	CryoLife, Inc.		6,671
	143	Cynosure, Inc., Class A(b)		3,090
	909	Emergent Biosolutions, Inc.(b)		17,753
	306	Exactech, Inc.(b)		6,946
	940	Greatbatch, Inc.(b)		35,833
	914	Haemonetics Corp.(b)		37,072
	1,002	Hanger, Inc.(b)		36,773
	2,450	HealthSouth Corp.		86,020
	235	ICU Medical, Inc.(b)		14,523
	545	Integra LifeSciences Holdings(b)		24,950
	245	Landauer, Inc.		11,858
	669	LHC Group, Inc.(b)		13,781
	848	Meridian Bioscience, Inc.		20,963
	1,219	Merit Medical Systems, Inc.(b)		19,492
	1,609	Molina Healthcare, Inc.(b)		50,909
	757	Natus Medical, Inc.(b)		14,936
	647	Nektar Therapeutics(b)		6,153
	597	OraSure Technologies, Inc.(b)		3,892
	2,488	Patterson Cos., Inc.		105,765
	8,416	PDL BioPharma, Inc.		68,085
	812	Rigel Pharmaceuticals, Inc.(b)		2,509
	3,361	Select Medical Holdings Corp.		28,501
	934	Targacept, Inc.(b)		4,437
	2,967	VCA Antech, Inc.(b)		84,411
	1,440	West Pharmaceutical Services, Inc.		69,624
	975	Wright Medical Group, Inc.(b)		26,491
				1,398,621
		Industrials—17.4%
	1,433	A.O. Smith Corp.		74,014
	466	AAON, Inc.		12,587
	2,457	AAR Corp.		71,941
	1,380	Actuant Corp.		51,833
	1,267	Aegion Corp.(b)		25,973
	620	Aerovironment, Inc.(b)		16,808
	757	Altra Holdings, Inc.		22,990
	227	American Science & Engineering, Inc.		14,932
	1,010	API Technologies Corp.(b)		2,949

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

25

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

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrials (continued)
	1,115	Applied Industrial Technologies, Inc.	$	52,751
	3,198	Babcock & Wilcox Co. (The)		103,008
	139	Barrett Business Services, Inc.		11,574
	1,219	Beacon Roofing Supply, Inc.(b)		42,311
	1,390	Blount International, Inc.(b)		16,930
	410	Chart Industries, Inc.(b)		44,063
	862	CLARCOR, Inc.		50,410
	1,333	Copart, Inc.(b)		42,963
	452	Cubic Corp.		23,730
	2,017	Donaldson Co., Inc.		79,893
	1,017	Douglas Dynamics, Inc.		15,428
	1,051	Dun & Bradstreet Corp. (The)		114,338
	407	Dynamic Materials Corp.		8,995
	1,672	EnerSys		110,937
	615	ESCO Technologies, Inc.		22,189
	997	Esterline Technologies Corp.(b)		79,920
	211	Exponent, Inc.		15,954
	1,598	Flow International Corp.(b)		6,376
	482	Forward Air Corp.		19,511
	690	Franklin Electric Co., Inc.		26,116
	1,369	Furmanite Corp.(b)		15,401
	1,406	GenCorp, Inc.(b)		23,621
	791	Generac Holdings, Inc.		39,036
	327	Gorman-Rupp Co. (The)		13,322
	296	GP Strategies Corp.(b)		8,294
	865	Graco, Inc.		66,830
	1,714	Great Lakes Dredge & Dock Corp.		13,918
	1,177	Healthcare Services Group, Inc.		32,238
	1,861	Hexcel Corp.(b)		78,739
	1,117	Hub Group, Inc., Class A(b)		41,027
	675	Huron Consulting Group, Inc.(b)		39,535
	92	Hyster-Yale Materials Handling, Inc.		7,216
	921	ICF International, Inc.(b)		31,885
	1,635	IDEX Corp.		113,060
	1,395	Interface, Inc.		28,249
	930	Kaman Corp.		34,577
	1,622	KAR Auction Services, Inc.		48,206
	2,918	Kratos Defense & Security Solutions, Inc.(b)		24,745
	844	Landstar System, Inc.		46,665
	1,531	Lincoln Electric Holdings, Inc.		106,006
	336	LMI Aerospace, Inc.(b)		5,275
	916	Macquarie Infrastructure Co. LLC (Australia)		50,298
	850	Marten Transport Ltd.		14,994
	669	Nordson Corp.		48,228
	1,310	Old Dominion Freight Line, Inc.(b)		61,439
	66	Preformed Line Products Co.		5,545
	397	RBC Bearings, Inc.(b)		27,310
	948	Regal-Beloit Corp.		69,517
	3,152	Swift Transportation Co.(b)		68,682
	954	TAL International Group, Inc.(b)		46,088
	479	Taser International, Inc.(b)		8,512
	848	Teledyne Technologies, Inc.(b)		75,319
	416	Tennant Co.		25,247
	1,764	Tetra Tech, Inc.(b)		46,093
	207	TRC Cos., Inc.(b)		1,592
	327	UniFirst Corp.		33,622

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrials (continued)
	429	US Ecology, Inc.	$	15,251
	840	WABCO Holdings, Inc.(b)		71,971
	703	Watsco, Inc.		66,989
				2,735,966
		Information Technology—13.4%
	408	ACI Worldwide, Inc.(b)		22,489
	945	Actuate Corp.(b)		7,569
	1,724	ADTRAN, Inc.		40,479
	551	Alpha & Omega Semiconductor Ltd.(b)		4,055
	10,156	Atmel Corp.(b)		73,936
	222	Badger Meter, Inc.		11,546
	643	Blackbaud, Inc.		23,148
	631	Blucora, Inc.(b)		14,911
	1,531	Booz Allen Hamilton Holding Corp.		30,314
	1,672	Brooks Automation, Inc.		16,118
	697	Cabot Microelectronics Corp.(b)		28,500
	165	Cass Information Systems, Inc.		9,459
	1,024	Cognex Corp.		32,000
	478	Coherent, Inc.		31,639
	283	Computer Task Group, Inc.		4,848
	1,005	Comtech Telecommunications Corp.		30,170
	414	Cray, Inc.(b)		9,257
	849	Dice Holdings, Inc.(b)		6,266
	1,187	Diodes, Inc.(b)		28,749
	742	DST Systems, Inc.		62,899
	304	DTS, Inc.(b)		6,080
	835	EPIQ Systems, Inc.		12,492
	1,494	Euronet Worldwide, Inc.(b)		64,840
	609	Exar Corp.(b)		7,022
	369	Forrester Research, Inc.		14,321
	1,415	Global Payments, Inc.		84,164
	480	GSI Technology, Inc.(b)		3,370
	11,259	GT Advanced Technologies, Inc.(b)		84,442
	1,109	Heartland Payment Systems, Inc.		44,859
	1,303	IAC/InterActiveCorp.		69,567
	1,113	Integrated Silicon Solution, Inc.(b)		11,998
	461	InterDigital, Inc.		17,864
	1,113	Internap Network Services Corp.(b)		8,091
	2,339	IntraLinks Holdings, Inc.(b)		24,302
	1,581	Itron, Inc.(b)		67,461
	3,677	JDS Uniphase Corp.(b)		48,132
	1,676	Kopin Corp.(b)		6,151
	2,130	Kulicke & Soffa Industries, Inc. (Singapore)(b)		27,477
	248	KVH Industries, Inc.(b)		3,408
	3,235	Lattice Semiconductor Corp.(b)		16,596
	2,162	Limelight Networks, Inc.(b)		4,151
	1,562	LTX-Credence Corp.(b)		9,575
	1,345	Magnachip Semiconductor Corp. (South Korea)(b)		25,138
	167	Manhattan Associates, Inc.(b)		17,787
	1,486	ManTech International Corp., Class A		41,519
	657	MAXIMUS, Inc.		31,832
	312	Measurement Specialties, Inc.(b)		17,388
	2,464	Mentor Graphics Corp.		54,405
	943	Micrel, Inc.		8,676

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

26

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

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	115	MicroStrategy, Inc., Class A(b)	$	14,029
	1,282	MKS Instruments, Inc.		37,998
	560	Move, Inc.(b)		9,503
	309	MTS Systems Corp.		20,184
	996	NETGEAR, Inc.(b)		28,645
	2,612	OmniVision Technologies, Inc.(b)		36,594
	582	Oplink Communications, Inc.(b)		10,621
	330	OSI Systems, Inc.(b)		24,037
	356	PC Connection, Inc.		7,116
	742	Perficient, Inc.(b)		13,423
	705	Plantronics, Inc.		30,273
	6,471	PMC—Sierra, Inc.(b)		37,985
	6,642	Polycom, Inc.(b)		69,077
	1,318	Progress Software Corp.(b)		34,215
	1,868	PTC, Inc.(b)		51,781
	1,541	QuinStreet, Inc.(b)		13,699
	2,119	Rambus, Inc.(b)		18,520
	353	Rosetta Stone, Inc.(b)		5,359
	635	SeaChange International, Inc.(b)		9,011
	561	Silicon Graphics International Corp.(b)		7,164
	596	Silicon Laboratories, Inc.(b)		23,971
	746	SS&C Technologies Holdings, Inc.(b)		29,318
	147	Stamps.com, Inc.(b)		6,680
	2,007	Sykes Enterprises, Inc.(b)		37,571
	292	Tessco Technologies, Inc.		10,346
	8,899	TriQuint Semiconductor, Inc.(b)		70,569
	3,622	TTM Technologies, Inc.(b)		31,692
	159	Tyler Technologies, Inc.(b)		15,377
	773	ViaSat, Inc.(b)		51,111
	1,047	WebMD Health Corp.(b)		36,875
				2,114,204
		Materials—6.1%
	1,592	AptarGroup, Inc.		102,143
	399	Arabian American Development Co.(b)		3,631
	943	Axiall Corp.		36,673
	1,156	Berry Plastics Group, Inc.(b)		23,213
	131	Chase Corp.		3,964
	849	Clearwater Paper Corp.(b)		44,335
	788	Compass Minerals International, Inc.		58,682
	108	Deltic Timber Corp.		6,899
	403	Eagle Materials, Inc.		30,229
	3,073	Golden Minerals Co.(b)		2,366
	12,309	Golden Star Resources Ltd.(b)		5,945
	7,516	Graphic Packaging Holding Co.(b)		63,134
	235	Handy & Harman Ltd.(b)		5,426
	231	Hawkins, Inc.		8,318
	300	Haynes International, Inc.		16,170
	445	Innospec, Inc.		20,497
	687	Kaiser Aluminum Corp.		46,338
	765	Koppers Holdings, Inc.		34,050
	1,571	Kraton Performance Polymers, Inc.(b)		33,415
	673	Kronos Worldwide, Inc.		10,438
	727	Landec Corp.(b)		8,513
	2,251	Omnova Solutions, Inc.(b)		19,584
	1,920	PolyOne Corp.		58,176

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Materials (continued)
	306	Quaker Chemical Corp.	$	23,229
	779	Schweitzer-Mauduit International, Inc.		48,205
	1,391	Silgan Holdings, Inc.		62,692
	445	Stepan Co.		26,197
	2,940	Stillwater Mining Co.(b)		32,075
	18,269	Thompson Creek Metals Co., Inc.(b)		58,644
	147	US Silica Holdings, Inc.		5,119
	318	Westlake Chemical Corp.		34,160
	798	Zep, Inc.		15,872
	765	Zoltek Cos., Inc.(b)		12,776
				961,108
		Telecommunication Services—1.9%
	260	Atlantic Tele-Network, Inc.		14,409
	840	IDT Corp., Class B		18,388
	3,485	Level 3 Communications, Inc.(b)		106,467
	687	Lumos Networks Corp.		15,121
	707	Shenandoah Telecommunications Co.		19,605
	420	Straight Path Communications, Inc., Class B(b)		2,293
	2,998	tw telecom, inc.(b)		94,497
	6,908	Vonage Holdings Corp.(b)		25,767
				296,547
		Utilities—2.6%
	964	American States Water Co.		27,455
	3,658	Aqua America, Inc.		92,108
	229	Artesian Resources Corp., Class A		5,244
	10,238	Atlantic Power Corp.		45,969
	318	Chesapeake Utilities Corp.		17,302
	1,874	Cleco Corp.		86,841
	265	Connecticut Water Service, Inc.		8,493
	1,230	El Paso Electric Co.		43,259
	523	Ormat Technologies, Inc. (Israel)		13,635
	1,783	UIL Holdings Corp.		68,681
	319	York Water Co. (The)		6,607
				415,594
		Total Common Stocks and Other Equity Interests (Cost $12,972,956)		15,725,842
		Money Market Fund—0.5%
	71,200	Premier Portfolio—Institutional Class(c) (Cost $71,200)		71,200
		Total Investments (Cost $13,044,156)—100.4%		15,797,042
		Other assets less liabilities—(0.4)%		(66,496	)
		Net Assets—100.0%	$	15,730,546

Investment Abbreviations:

REIT—Real Estate Investment Trust

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

27

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

October 31, 2013

(Unaudited)

Notes to Schedule of Investments:

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

^(b)  Non-income producing security.

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

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

28

Portfolio Composition

PowerShares Fundamental Pure Small Growth Portfolio (PXSG)

Sector Breakdown (% of the Fund’s Net Assets) as of October 31, 2013 (Unaudited)
Information Technology	21.7
Financials	21.2
Health Care	14.2
Consumer Discretionary	14.0
Industrials	13.5
Energy	6.1
Materials	4.9
Consumer Staples	3.1
Utilities	0.9
Telecommunication Services	0.4
Money Market Fund Plus Other Assets Less Liabilities	0.0

Schedule of Investments^(a)

PowerShares Fundamental Pure Small Growth Portfolio (PXSG)

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—14.0%
	538	AFC Enterprises, Inc.(b)	$	23,984
	1,558	AMC Networks, Inc., Class A(b)		109,200
	712	American Public Education, Inc.(b)		28,501
	465	America’s Car-Mart, Inc.(b)		21,269
	8,654	Ascena Retail Group, Inc.(b)		171,263
	1,432	BJ’s Restaurants, Inc.(b)		38,750
	1,198	Black Diamond, Inc.(b)		17,862
	1,567	Bloomin’ Brands, Inc.(b)		39,222
	2,447	Bridgepoint Education, Inc.(b)		47,961
	699	Buffalo Wild Wings, Inc.(b)		99,663
	5,090	Crocs, Inc.(b)		61,996
	2,602	Deckers Outdoor Corp.(b)		179,096
	4,225	Dick’s Sporting Goods, Inc.		224,812
	1,071	Dorman Products, Inc.		52,061
	1,510	DSW, Inc., Class A		132,382
	614	Five Below, Inc.(b)		29,632
	1,751	Fossil Group, Inc.(b)		222,272
	995	Francesca’s Holdings Corp.(b)		17,900
	726	Gentherm, Inc.(b)		16,952
	4,369	GNC Holdings, Inc., Class A		256,985
	1,490	Grand Canyon Education, Inc.(b)		70,432
	4,932	Groupon, Inc.(b)		45,029
	598	HomeAway, Inc.(b)		17,731
	4,806	Iconix Brand Group, Inc.(b)		173,449
	1,381	iRobot Corp.(b)		46,774
	739	Jamba, Inc.(b)		8,439
	1,565	K12, Inc.(b)		28,608
	664	Lumber Liquidators Holdings, Inc.(b)		75,822

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Discretionary (continued)
	637	Mattress Firm Holding Corp.(b)	$	19,148
	1,374	Monro Muffler Brake, Inc.		63,204
	571	Morningstar, Inc.		45,846
	4,917	National CineMedia, Inc.		86,146
	846	Panera Bread Co., Class A(b)		133,600
	2,081	Polaris Industries, Inc.		272,507
	2,676	Scripps Networks Interactive, Inc., Class A		215,418
	2,203	SHFL entertainment, Inc.(b)		51,066
	1,252	Shutterfly, Inc.(b)		61,523
	1,497	Skullcandy, Inc.(b)		9,401
	2,235	Steven Madden Ltd.(b)		81,980
	454	Sturm Ruger & Co., Inc.		29,696
	256	Tesla Motors, Inc.(b)		40,945
	3,380	Texas Roadhouse, Inc.		92,680
	1,335	TripAdvisor, Inc.(b)		110,418
	428	Tumi Holdings, Inc.(b)		9,138
	1,585	Under Armour, Inc., Class A(b)		128,623
	4,489	Urban Outfitters, Inc.(b)		170,043
	732	Vera Bradley, Inc.(b)		16,214
	1,178	Vitamin Shoppe, Inc.(b)		55,260
	1,175	Zagg, Inc.(b)		5,570
				3,956,473
		Consumer Staples—3.1%
	2,770	B&G Foods, Inc.		93,764
	189	Boston Beer Co., Inc. (The), Class A(b)		43,393
	3,454	Boulder Brands, Inc.(b)		56,611
	557	Chefs’ Warehouse, Inc. (The)(b)		13,346
	7,729	Darling International, Inc.(b)		179,854

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

29

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

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Staples (continued)
	1,539	Fresh Market, Inc. (The)(b)	$	78,350
	3,198	Green Mountain Coffee Roasters, Inc.(b)		200,866
	2,717	Harbinger Group, Inc.(b)		29,588
	619	Medifast, Inc.(b)		14,429
	658	PriceSmart, Inc.		74,874
	3,086	Snyders-Lance, Inc.		92,549
				877,624
		Energy—6.1%
	1,465	Approach Resources, Inc.(b)		41,240
	3,369	Atwood Oceanics, Inc.(b)		178,995
	409	Bonanza Creek Energy, Inc.(b)		20,671
	5,483	BPZ Resources, Inc.(b)		11,021
	1,918	C&J Energy Services, Inc.(b)		44,191
	821	CARBO Ceramics, Inc.		102,904
	386	Cheniere Energy, Inc.(b)		15,363
	2,168	Clean Energy Fuels Corp.(b)		24,694
	2,761	Cobalt International Energy, Inc.(b)		64,083
	1,067	Contango Oil & Gas Co.		45,721
	587	Continental Resources, Inc.(b)		66,859
	704	CVR Energy, Inc.		27,963
	2,283	Delek US Holdings, Inc. (Israel)		58,331
	1,905	Forum Energy Technologies, Inc.(b)		55,740
	201	Geospace Technologies Corp.(b)		19,581
	1,420	Gulfport Energy Corp.(b)		83,340
	1,317	Halcon Resources Corp.(b)		6,822
	6,034	Kodiak Oil & Gas Corp.(b)		78,261
	1,140	Laredo Petroleum Holdings, Inc.(b)		36,218
	6,425	Magnum Hunter Resources Corp.(b)		45,810
	1,645	Matador Resources Co.(b)		30,284
	2,998	Midstates Petroleum Co., Inc.(b)		16,909
	3,371	Miller Energy Resources, Inc.(b)		22,788
	2,366	Northern Oil and Gas, Inc.(b)		38,873
	3,716	Nuverra Environmental Solutions, Inc.(b)		9,067
	1,346	Oasis Petroleum, Inc.(b)		71,674
	1,782	PBF Energy, Inc.		46,920
	3,066	Renewable Energy Group, Inc.(b)		33,450
	3,740	Resolute Energy Corp.(b)		35,081
	1,673	Rex Energy Corp.(b)		35,969
	414	RigNet, Inc.(b)		15,260
	2,705	RPC, Inc.		49,610
	615	Sanchez Energy Corp.(b)		17,534
	34,174	SandRidge Energy, Inc.(b)		216,663
	884	Solazyme, Inc.(b)		9,247
	1,857	Triangle Petroleum Corp.(b)		19,628
	21,993	Vantage Drilling Co.(b)		39,148
				1,735,913
		Financials—21.2%
	1,054	1st United Bancorp, Inc.		8,053
	86	Alexander’s, Inc. REIT		27,671
	1,766	American Assets Trust, Inc. REIT		58,790
	3,734	American Campus Communities, Inc. REIT		129,047
	1,472	AmTrust Financial Services, Inc.		56,466
	1,950	Apollo Commercial Real Estate Finance, Inc. REIT		31,414
	4,603	ARMOUR Residential REIT, Inc.		18,964

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	2,365	Associated Estates Realty Corp. REIT	$	36,279
	1,130	Bank of the Ozarks, Inc.		55,912
	1,208	Beneficial Mutual Bancorp, Inc.(b)		11,778
	414	BofI Holding, Inc.(b)		25,014
	1,749	Campus Crest Communities, Inc. REIT		17,507
	583	Capital Bank Financial Corp., Class A(b)		12,954
	1,257	Cardinal Financial Corp.		20,741
	2,719	CBOE Holdings, Inc.		131,871
	1,110	Chatham Lodging Trust REIT		20,935
	2,159	Chesapeake Lodging Trust REIT		50,888
	1,434	Colony Financial, Inc. REIT		29,010
	650	Coresite Realty Corp. REIT		21,086
	198	Credit Acceptance Corp.(b)		23,423
	13,449	CYS Investments, Inc. REIT		114,182
	2,816	DuPont Fabros Technology, Inc. REIT		69,978
	3,602	Dynex Capital, Inc. REIT		31,121
	764	Eagle Bancorp, Inc.(b)		20,208
	1,140	eHealth, Inc.(b)		48,587
	2,780	Equity Lifestyle Properties, Inc. REIT		105,612
	4,162	Everbank Financial Corp.		62,929
	690	Evercore Partners, Inc., Class A		34,824
	1,421	Excel Trust, Inc. REIT		17,166
	3,304	Extra Space Storage, Inc. REIT		151,951
	3,773	EZCORP, Inc., Class A(b)		59,349
	483	Fidus Investment Corp.		9,810
	600	Financial Engines, Inc.		33,522
	914	First Cash Financial Services, Inc.(b)		55,288
	824	First Connecticut Bancorp, Inc.		12,096
	358	Fox Chase Bancorp, Inc.		6,183
	524	Franklin Financial Corp.		9,888
	4,253	Geo Group, Inc. (The) REIT		150,003
	2,558	Government Properties Income Trust REIT		62,543
	1,859	Green Dot Corp., Class A(b)		39,894
	6,788	Hancock Holding Co.		222,511
	9,250	Hatteras Financial Corp. REIT		168,350
	5,073	Healthcare Trust of America, Inc., Class A REIT		58,948
	3,721	Hercules Technology Growth Capital, Inc.		57,452
	922	HFF, Inc., Class A		22,635
	2,060	Home BancShares, Inc.		69,793
	1,494	Howard Hughes Corp. (The)(b)		174,873
	1,293	Hudson Pacific Properties, Inc. REIT		26,752
	2,521	IBERIABANK Corp.		147,302
	1,356	ICG Group, Inc.(b)		22,116
	912	INTL FCStone, Inc.(b)		18,660
	9,507	Invesco Mortgage Capital, Inc. REIT(c)		146,883
	2,171	Investors Bancorp, Inc.		51,474
	891	Kennedy-Wilson Holdings, Inc.		17,856
	777	MarketAxess Holdings, Inc.		50,684
	6,326	Medical Properties Trust, Inc. REIT		82,491
	217	Meridian Interstate Bancorp, Inc.(b)		5,152
	5,696	National Retail Properties, Inc. REIT		195,942
	805	Northfield Bancorp, Inc.		10,409
	2,750	Ocwen Financial Corp.(b)		154,633
	5,276	OMEGA Healthcare Investors, Inc. REIT		175,374
	2,494	Oritani Financial Corp.		40,453
	3,103	Pebblebrook Hotel Trust REIT		93,711

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

30

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

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	2,395	PennyMac Mortgage Investment Trust REIT	$	55,253
	1,484	Portfolio Recovery Associates, Inc.(b)		88,224
	3,089	Prosperity Bancshares, Inc.		192,908
	1,338	Realogy Holdings Corp.(b)		55,045
	2,433	Retail Opportunity Investments Corp. REIT		36,008
	7,249	RLJ Lodging Trust REIT		183,110
	1,926	Signature Bank(b)		196,105
	691	STAG Industrial, Inc. REIT		14,449
	5,757	Starwood Property Trust, Inc. REIT		147,897
	3,966	Stifel Financial Corp.(b)		162,408
	2,771	SVB Financial Group(b)		265,406
	3,313	Tanger Factory Outlet Centers, Inc. REIT		115,458
	524	Tejon Ranch Co.(b)		19,398
	545	Terreno Realty Corp. REIT		9,690
	433	Territorial Bancorp, Inc.		9,444
	1,658	Texas Capital Bancshares, Inc.(b)		86,299
	7,390	Two Harbors Investment Corp. REIT		68,949
	1,404	ViewPoint Financial Group, Inc.		30,621
	85	Virtus Investment Partners, Inc.(b)		17,299
	4,193	Waddell & Reed Financial, Inc., Class A		258,918
	570	Walker & Dunlop, Inc.(b)		7,399
	1,058	Walter Investment Management Corp.(b)		39,961
	320	Westwood Holdings Group, Inc.		17,066
				5,974,706
		Health Care—14.2%
	442	Abaxis, Inc.		15,793
	569	Abiomed, Inc.(b)		13,645
	1,884	Accretive Health, Inc.(b)		15,562
	4,736	Accuray, Inc.(b)		31,968
	565	Acorda Therapeutics, Inc.(b)		17,295
	1,144	Air Methods Corp.		50,016
	811	Akorn, Inc.(b)		16,577
	1,458	Align Technology, Inc.(b)		83,193
	10,905	Allscripts Healthcare Solutions, Inc.(b)		150,816
	381	Alnylam Pharmaceuticals, Inc.(b)		21,949
	2,703	Alphatec Holdings, Inc.(b)		4,919
	652	AMAG Pharmaceuticals, Inc.(b)		17,591
	703	Ariad Pharmaceuticals, Inc.(b)		1,547
	296	athenahealth, Inc.(b)		39,519
	47	Atrion Corp.		12,557
	662	Auxilium Pharmaceuticals, Inc.(b)		11,393
	2,241	Aveo Pharmaceuticals, Inc.(b)		4,639
	1,248	Bio-Reference Labs, Inc.(b)		40,448
	3,547	Bruker Corp.(b)		72,536
	931	Cantel Medical Corp.		32,678
	5,177	Centene Corp.(b)		290,740
	545	Cepheid, Inc.(b)		22,192
	2,228	Cubist Pharmaceuticals, Inc.(b)		138,136
	525	Cyberonics, Inc.(b)		30,324
	3,929	Dendreon Corp.(b)		10,098
	1,571	Depomed, Inc.(b)		11,311
	489	DexCom, Inc.(b)		14,049
	1,883	Emeritus Corp.(b)		36,078
	1,217	Ensign Group, Inc. (The)		51,820
	1,389	ExamWorks Group, Inc.(b)		35,906

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Health Care (continued)
	2,370	Exelixis, Inc.(b)	$	11,684
	2,645	Globus Medical, Inc., Class A(b)		50,784
	441	HealthStream, Inc.(b)		15,752
	95	HeartWare International, Inc.(b)		6,893
	691	Hi-Tech Pharmacal Co., Inc.		29,775
	1,607	HMS Holdings Corp.(b)		33,956
	1,400	IDEXX Laboratories, Inc.(b)		151,004
	611	Immunogen, Inc.(b)		10,057
	5,736	Impax Laboratories, Inc.(b)		116,211
	1,669	InterMune, Inc.(b)		23,516
	745	IPC The Hospitalist Co., Inc.(b)		40,819
	769	Isis Pharmaceuticals, Inc.(b)		25,585
	3,994	Lexicon Pharmaceuticals, Inc.(b)		9,586
	1,263	Luminex Corp.(b)		24,628
	3,501	Masimo Corp.		89,696
	2,998	MedAssets, Inc.(b)		69,044
	1,586	Medicines Co. (The)(b)		53,797
	252	Medidata Solutions, Inc.(b)		27,798
	2,604	MEDNAX, Inc.(b)		283,888
	3,240	Merge Healthcare, Inc.(b)		8,230
	1,914	Momenta Pharmaceuticals, Inc.(b)		31,370
	497	MWI Veterinary Supply, Inc.(b)		78,844
	2,718	Myriad Genetics, Inc.(b)		66,265
	819	Neogen Corp.(b)		37,854
	1,009	NPS Pharmaceuticals, Inc.(b)		29,039
	2,721	NuVasive, Inc.(b)		86,473
	1,275	NxStage Medical, Inc.(b)		16,919
	1,634	Omnicell, Inc.(b)		37,696
	3,076	PAREXEL International Corp.(b)		140,604
	1,679	Pozen, Inc.(b)		10,552
	3,404	Quality Systems, Inc.		77,679
	947	Questcor Pharmaceuticals, Inc.		58,117
	821	Quidel Corp.(b)		20,279
	4,901	RTI Surgical, Inc.(b)		13,674
	1,052	Salix Pharmaceuticals Ltd.(b)		75,481
	2,581	Sciclone Pharmaceuticals, Inc.(b)		12,208
	427	Seattle Genetics, Inc.(b)		16,495
	1,823	Sirona Dental Systems, Inc.(b)		131,712
	3,180	Solta Medical, Inc.(b)		5,883
	572	Spectranetics Corp.(b)		11,949
	1,074	Spectrum Pharmaceuticals, Inc.		9,226
	2,261	Team Health Holdings, Inc.(b)		98,218
	1,176	Techne Corp.		102,771
	1,877	Thoratec Corp.(b)		81,068
	1,430	United Therapeutics Corp.(b)		126,584
	731	US Physical Therapy, Inc.		23,334
	541	Vascular Solutions, Inc.(b)		10,614
	4,241	ViroPharma, Inc.(b)		164,636
	882	VIVUS, Inc.(b)		8,282
	1,771	Volcano Corp.(b)		33,950
				3,995,774
		Industrials—13.5%
	909	Acacia Research Corp.		13,717
	640	Advisory Board Co. (The)(b)		43,904
	4,457	Air Lease Corp.		131,036

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

31

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

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrials (continued)
	531	Allegiant Travel Co.	$	55,367
	1,682	Ameresco, Inc., Class A(b)		17,594
	557	Argan, Inc.		12,393
	124	Astronics Corp., Class B(b)		5,988
	621	Astronics Corp.(b)		30,466
	962	AZZ, Inc.		43,194
	715	CAI International, Inc.(b)		15,651
	2,700	Clean Harbors, Inc.(b)		166,725
	925	Colfax Corp.(b)		51,763
	461	DXP Enterprises, Inc.(b)		42,366
	731	Echo Global Logistics, Inc.(b)		13,458
	2,000	Edgen Group, Inc.(b)		23,940
	1,081	EnerNOC, Inc.(b)		17,977
	1,278	Genesee & Wyoming, Inc., Class A(b)		127,596
	421	Graham Corp.		15,497
	1,608	HEICO Corp.		86,157
	3,259	II-VI, Inc.(b)		55,599
	1,749	InnerWorkings, Inc.(b)		16,738
	842	KEYW Holding Corp. (The)(b)		9,683
	2,635	Kirby Corp.(b)		233,171
	750	LB Foster Co., Class A		35,062
	414	Lindsay Corp.		31,468
	4,116	MasTec, Inc.(b)		131,589
	581	Middleby Corp. (The)(b)		132,265
	807	Mistras Group, Inc.(b)		14,817
	2,024	MSC Industrial Direct Co., Inc., Class A		154,573
	573	Multi-Color Corp.		19,958
	1,620	On Assignment, Inc.(b)		54,740
	5,583	Pendrell Corp.(b)		12,450
	1,373	PMFG, Inc.(b)		10,764
	2,420	Polypore International, Inc.(b)		109,384
	1,734	Primoris Services Corp.		45,153
	1,630	Raven Industries, Inc.		54,377
	1,208	Roadrunner Transportation Systems, Inc.(b)		32,012
	2,032	Rollins, Inc.		56,164
	1,078	RPX Corp.(b)		19,253
	3,542	Sensata Technologies Holding NV(b)		133,285
	2,963	Spirit Airlines, Inc.(b)		127,853
	773	Sun Hydraulics Corp.		30,673
	981	Team, Inc.(b)		36,581
	1,155	Thermon Group Holdings, Inc.(b)		27,154
	2,749	Titan International, Inc.		39,860
	1,934	Titan Machinery, Inc.(b)		34,116
	3,026	Towers Watson & Co., Class A(b)		347,415
	2,707	Triumph Group, Inc.		193,957
	995	Valmont Industries, Inc.		139,798
	2,749	Wabtec Corp.		179,207
	4,831	Waste Connections, Inc.		206,477
	2,025	Wesco Aircraft Holdings, Inc.(b)		37,098
	3,366	Woodward, Inc.		134,943
	536	XPO Logistics, Inc.(b)		10,816
				3,823,242
		Information Technology—21.7%
	696	3D Systems Corp.(b)		43,319
	2,120	Accelrys, Inc.(b)		19,822

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	4,687	Active Network, Inc. (The)(b)	$	67,680
	1,353	Advent Software, Inc.		45,393
	1,136	Aruba Networks, Inc.(b)		21,311
	651	Aspen Technology, Inc.(b)		24,888
	2,467	Bankrate, Inc. (United Kingdom)(b)		41,544
	950	Bottomline Technologies, Inc.(b)		29,849
	507	BroadSoft, Inc.(b)		16,589
	2,251	Calix, Inc.(b)		22,893
	1,854	Cardtronics, Inc.(b)		72,769
	740	Cavium, Inc.(b)		29,829
	991	CEVA, Inc.(b)		14,201
	2,538	Ciena Corp.(b)		59,059
	2,088	Cirrus Logic, Inc.(b)		46,834
	421	CommVault Systems, Inc.(b)		32,872
	1,129	comScore, Inc.(b)		30,167
	1,182	Comverse, Inc.(b)		37,328
	749	Concur Technologies, Inc.(b)		78,345
	1,256	Constant Contact, Inc.(b)		32,543
	551	CoStar Group, Inc.(b)		97,521
	3,877	Cree, Inc.(b)		235,528
	1,196	Datalink Corp.(b)		12,283
	1,773	Dealertrack Technologies, Inc.(b)		66,133
	2,523	Demand Media, Inc.(b)		12,060
	2,998	Dolby Laboratories, Inc., Class A		107,148
	1,803	Ebix, Inc.		20,518
	2,602	EchoStar Corp., Class A(b)		124,792
	6,030	Entropic Communications, Inc.(b)		25,808
	549	Envestnet, Inc.(b)		19,929
	1,039	ExlService Holdings, Inc.(b)		30,037
	1,170	FactSet Research Systems, Inc.		127,460
	602	FARO Technologies, Inc.(b)		28,595
	1,373	FEI Co.		122,307
	5,677	Finisar Corp.(b)		130,628
	1,142	FleetCor Technologies, Inc.(b)		131,730
	6,671	FLIR Systems, Inc.		189,990
	1,372	Fortinet, Inc.(b)		27,591
	873	Fusion-io, Inc.(b)		9,385
	2,001	Gartner, Inc.(b)		117,959
	9,613	Genpact Ltd.(b)		190,626
	1,878	Globecomm Systems, Inc.(b)		26,348
	10,096	Harmonic, Inc.(b)		73,802
	1,105	Higher One Holdings, Inc.(b)		8,785
	807	Hittite Microwave Corp.(b)		51,559
	5,181	Infinera Corp.(b)		52,898
	3,090	Informatica Corp.(b)		119,274
	794	Inphi Corp.(b)		11,704
	311	Interactive Intelligence Group, Inc.(b)		19,111
	826	InvenSense, Inc.(b)		13,951
	625	IPG Photonics Corp.		41,419
	1,360	Ixia(b)		19,285
	1,856	j2 Global, Inc.		102,043
	3,103	Jack Henry & Associates, Inc.		169,455
	623	Liquidity Services, Inc.(b)		16,266
	886	Littelfuse, Inc.		75,337
	994	LivePerson, Inc.(b)		9,284
	765	LogMeIn, Inc.(b)		24,709

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

32

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

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	1,058	Maxwell Technologies, Inc.(b)	$	7,935
	3,320	MICROS Systems, Inc.(b)		180,110
	4,588	Microsemi Corp.(b)		115,296
	2,503	Mindspeed Technologies, Inc.(b)		7,234
	1,081	Monolithic Power Systems, Inc.		34,419
	1,157	Monotype Imaging Holdings, Inc.		32,651
	1,368	Nanometrics, Inc.(b)		25,417
	3,524	National Instruments Corp.		102,372
	1,048	NeoPhotonics Corp.(b)		7,430
	1,452	NetScout Systems, Inc.(b)		41,121
	2,219	NeuStar, Inc., Class A(b)		101,896
	1,747	NIC, Inc.		43,011
	164	NVE Corp.(b)		8,753
	12,643	OCZ Technology Group, Inc.(b)		14,034
	201	OpenTable, Inc.(b)		13,965
	440	Pegasystems, Inc.		16,746
	875	Power Integrations, Inc.		50,260
	288	PROS Holdings, Inc.(b)		10,181
	739	QLIK Technologies, Inc.(b)		18,726
	1,376	RealD, Inc.(b)		9,522
	639	RealPage, Inc.(b)		15,675
	1,291	Responsys, Inc.(b)		21,095
	4,446	Riverbed Technology, Inc.(b)		65,890
	8,063	Rovi Corp.(b)		135,136
	3,028	Rubicon Technology, Inc.(b)		26,041
	6,495	Sapient Corp.(b)		102,686
	2,090	Semtech Corp.(b)		65,020
	1,864	ServiceSource International, Inc.(b)		20,168
	2,839	ShoreTel, Inc.(b)		22,570
	8,756	Skyworks Solutions, Inc.(b)		225,730
	495	SolarWinds, Inc.(b)		17,914
	1,768	Solera Holdings, Inc.		99,397
	3,482	Super Micro Computer, Inc.(b)		48,469
	1,483	Synaptics, Inc.(b)		68,959
	827	Synchronoss Technologies, Inc.(b)		28,631
	520	Syntel, Inc.		44,637
	1,707	Telenav, Inc.(b)		12,376
	4,631	TIBCO Software, Inc.(b)		113,737
	2,315	TiVo, Inc.(b)		30,766
	161	Ultimate Software Group, Inc. (The)(b)		24,871
	648	Ultratech, Inc.(b)		15,416
	590	Universal Display Corp.(b)		18,821
	1,938	Vantiv, Inc., Class A(b)		53,295
	1,604	VASCO Data Security International, Inc.(b)		12,046
	3,060	Veeco Instruments, Inc.(b)		89,383
	6,739	VeriFone Systems, Inc.(b)		152,706
	909	Verint Systems, Inc.(b)		33,197
	1,062	Virtusa Corp.(b)		33,007
	724	Vocus, Inc.(b)		6,263
	1,102	Web.com Group, Inc.(b)		29,699
	1,337	Wex, Inc.(b)		124,809
	25,685	Zynga, Inc., Class A(b)		92,209
				6,122,191
		Materials—4.9%
	1,999	Allied Nevada Gold Corp.(b)		8,156

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Materials (continued)
	644	American Vanguard Corp.	$	16,808
	713	Balchem Corp.		40,826
	3,177	Calgon Carbon Corp.(b)		63,381
	10,170	Coeur d’Alene Mines Corp.(b)		124,176
	1,312	Flotek Industries, Inc.(b)		28,051
	1,622	FutureFuel Corp.		28,239
	3,008	Globe Specialty Metals, Inc.		52,760
	671	Gold Resource Corp.		3,482
	21,290	Hecla Mining Co.		66,425
	1,786	Innophos Holdings, Inc.		89,514
	3,774	Intrepid Potash, Inc.		56,044
	2,661	KapStone Paper and Packaging Corp.		138,266
	369	KMG Chemicals, Inc.		7,373
	1,324	LSB Industries, Inc.(b)		48,617
	8,232	Molycorp, Inc.(b)		41,736
	444	NewMarket Corp.		138,244
	699	PetroLogistics LP		9,052
	1,604	Royal Gold, Inc.		77,056
	3,601	Tronox Ltd., Class A		83,147
	2,725	W.R. Grace & Co.(b)		249,774
				1,371,127
		Telecommunication Services—0.4%
	1,377	8x8, Inc.(b)		15,780
	1,206	Cogent Communications Group, Inc.		42,367
	7,944	Iridium Communications, Inc.(b)		47,902
	2,053	ORBCOMM, Inc.(b)		12,380
				118,429
		Utilities—0.9%
	2,419	ITC Holdings Corp.		243,327
		Total Common Stocks and Other Equity Interests (Cost $23,627,053)		28,218,806
		Warrants—0.0%
		Energy—0.0%
	637	Magnum Hunter Resources Corp., expiring 05/15/16(b) (Cost $0)		0
		Money Market Fund—0.3%
	82,079	Premier Portfolio—Institutional Class(d) (Cost $82,079)		82,079
		Total Investments (Cost $23,709,132)—100.3%		28,300,885
		Other assets less liabilities—(0.3)%		(75,566	)
		Net Assets—100.0%	$	28,225,319

Investment Abbreviations:

REIT—Real Estate Investment Trust

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

33

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

October 31, 2013

(Unaudited)

Notes to Schedule of Investments:

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

^(b)  Non-income producing security.

^(c)  Affiliated company. The Fund’s Adviser is a subsidiary of Invesco Ltd. and therefore, Invesco Mortgage Capital, Inc. is considered to be affiliated with the Fund.

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

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

34

Portfolio Composition

PowerShares Fundamental Pure Small Value Portfolio (PXSV)

Sector Breakdown (% of the Fund’s Net Assets) as of October 31, 2013 (Unaudited)
Financials	22.6
Consumer Discretionary	22.4
Industrials	19.9
Information Technology	11.7
Energy	5.2
Materials	5.1
Utilities	4.3
Health Care	3.5
Consumer Staples	3.4
Telecommunication Services	1.8
Money Market Funds Plus Other Assets Less Liabilities	0.1

Schedule of Investments^(a)

PowerShares Fundamental Pure Small Value Portfolio (PXSV)

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—99.9%
		Consumer Discretionary—22.4%
	2,821	1-800-FLOWERS.COM, Inc., Class A(b)	$	15,318
	10,357	Aeropostale, Inc.(b)(c)		96,217
	1,552	Allison Transmission Holdings, Inc.		37,791
	6,236	American Apparel, Inc.(b)(c)		8,356
	4,042	ANN, Inc.(b)		142,925
	568	Arctic Cat, Inc.		29,763
	3,058	Asbury Automotive Group, Inc.(b)		146,937
	5,939	Barnes & Noble, Inc.(b)		83,918
	1,194	Bassett Furniture Industries, Inc.		16,716
	2,859	Beazer Homes USA, Inc.(b)(c)		51,948
	7,267	bebe Stores, Inc.		43,820
	7,720	Belo Corp., Class A		105,996
	2,300	Big 5 Sporting Goods Corp.		43,493
	100	Biglari Holdings, Inc.(b)		43,602
	2,078	Blyth, Inc.(c)		28,697
	2,658	Bob Evans Farms, Inc.		151,745
	4,747	Bon-Ton Stores, Inc. (The)(c)		54,353
	14,912	Boyd Gaming Corp.(b)		157,471
	5,464	Brinker International, Inc.		242,711
	5,337	Brown Shoe Co., Inc.		119,762
	3,754	Brunswick Corp.		169,418
	8,796	Callaway Golf Co.		74,150
	39,579	Career Education Corp.(b)		216,893
	1,372	Carmike Cinemas, Inc.(b)		31,405
	2,465	Cato Corp. (The), Class A		73,876
	1,533	CEC Entertainment, Inc.		71,055
	2,869	Cheesecake Factory, Inc. (The)		135,560
	2,339	Children’s Place Retail Stores, Inc. (The)(b)		127,686

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Discretionary (continued)
	3,118	Christopher & Banks Corp.(b)	$	17,991
	3,132	Citi Trends, Inc.(b)		45,978
	5,265	Clear Channel Outdoor Holdings, Inc., Class A(b)		44,752
	875	Columbia Sportswear Co.		58,511
	1,012	Conn’s, Inc.(b)		61,165
	5,727	Cooper Tire & Rubber Co.		148,959
	43,979	Corinthian Colleges, Inc.(b)		94,115
	674	Costa, Inc.(b)		13,561
	1,427	Cracker Barrel Old Country Store, Inc.		156,784
	1,018	CSS Industries, Inc.		26,356
	522	Culp, Inc.		10,101
	5,606	Cumulus Media, Inc., Class A(b)		33,524
	6,160	Denny’s Corp.(b)		39,116
	4,523	Destination XL Group, Inc.(b)		31,435
	2,374	Dillard’s, Inc., Class A		194,621
	1,061	Drew Industries, Inc.		53,326
	4,025	E.W. Scripps Co. (The), Class A(b)		79,776
	6,923	Education Management Corp.(b)(c)		105,922
	2,644	Entercom Communications Corp., Class A(b)		23,188
	5,603	Entravision Communications Corp., Class A		37,764
	1,782	Ethan Allen Interiors, Inc.		47,472
	5,385	Express, Inc.(b)		124,986
	8,998	Federal-Mogul Corp.(b)		184,369
	924	Fiesta Restaurant Group, Inc.(b)		39,168
	4,346	Fifth & Pacific Cos., Inc.(b)		115,126
	3,626	Finish Line, Inc. (The), Class A		90,795
	558	Flexsteel Industries, Inc.		15,323
	5,217	Fred’s, Inc., Class A		84,515

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

35

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

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Discretionary (continued)
	1,784	Fuel Systems Solutions, Inc.(b)	$	32,041
	5,644	Gray Television, Inc.(b)		47,692
	2,996	Group 1 Automotive, Inc.		191,744
	3,988	Harman International Industries, Inc.		323,108
	8,394	Harte-Hanks, Inc.		66,900
	1,293	Haverty Furniture Cos., Inc.		35,958
	3,903	hhgregg, Inc.(b)		60,536
	842	Hooker Furniture Corp.		13,304
	10,420	Hovnanian Enterprises, Inc., Class A(b)(c)		52,725
	2,880	Hyatt Hotels Corp., Class A(b)		137,088
	1,999	International Speedway Corp., Class A		65,387
	1,597	Interval Leisure Group, Inc.		38,759
	4,226	Isle of Capri Casinos, Inc.(b)		34,273
	10,112	ITT Educational Services, Inc.(b)(c)		405,693
	3,977	Jack in the Box, Inc.(b)		161,784
	3,627	JAKKS Pacific, Inc.(c)		23,358
	518	Johnson Outdoors, Inc., Class A		14,209
	15,010	Jones Group, Inc. (The)		233,255
	4,366	Journal Communications, Inc., Class A(b)		36,456
	6,198	KB Home(c)		105,180
	1,650	Kirkland’s, Inc.(b)		29,287
	3,634	Lamar Advertising Co., Class A(b)		166,110
	2,921	La-Z-Boy, Inc.		67,417
	1,721	Libbey, Inc.(b)		36,743
	1,629	Lithia Motors, Inc., Class A		102,383
	15,631	Live Nation Entertainment, Inc.(b)		303,867
	982	Luby’s, Inc.(b)		7,522
	847	M/I Homes, Inc.(b)		17,338
	493	Mac-Gray Corp.		10,392
	2,331	Marcus Corp.		33,473
	2,318	MarineMax, Inc.(b)		34,144
	2,498	Martha Stewart Living Omnimedia, Inc., Class A(b)		6,395
	1,839	Matthews International Corp., Class A		74,663
	14,945	McClatchy Co. (The), Class A(b)(c)		42,145
	2,303	MDC Holdings, Inc.		67,225
	4,741	Men’s Wearhouse, Inc. (The)		200,544
	2,874	Meredith Corp.		147,436
	1,483	Meritage Homes Corp.(b)		67,313
	7,163	Modine Manufacturing Co.(b)		95,411
	967	Monarch Casino & Resort, Inc.(b)		16,352
	2,620	Morgans Hotel Group Co.(b)		18,759
	579	Movado Group, Inc.		26,999
	845	Multimedia Games Holding Co., Inc.(b)		27,471
	1,313	NACCO Industries, Inc., Class A		74,802
	1,162	Nautilus, Inc.(b)		9,250
	3,265	New York & Co., Inc.(b)		16,717
	16,502	New York Times Co. (The), Class A		228,223
	896	Nexstar Broadcasting Group, Inc., Class A		39,773
	4,940	Nutrisystem, Inc.		92,872
	4,954	Orbitz Worldwide, Inc.(b)		45,775
	692	Oxford Industries, Inc.		49,665
	808	Papa John’s International, Inc.		61,141
	5,285	Penske Automotive Group, Inc.		209,392
	7,445	PEP Boys-Manny Moe & Jack (The)(b)		96,338
	2,601	Perry Ellis International, Inc.		49,445

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Discretionary (continued)
	5,963	Pinnacle Entertainment, Inc.(b)	$	139,534
	1,868	Pool Corp.		101,582
	14,419	Quiksilver, Inc.(b)		119,966
	1,119	Red Robin Gourmet Burgers, Inc.(b)		85,245
	12,912	Regal Entertainment Group, Class A		245,457
	6,321	Regis Corp.		91,655
	8,858	Ruby Tuesday, Inc.(b)		52,528
	2,391	Ruth’s Hospitality Group, Inc.		29,146
	1,799	Ryland Group, Inc. (The)		72,320
	254	Saga Communications, Inc., Class A		12,093
	10,883	Saks, Inc.(b)		174,019
	3,100	Scholastic Corp.		88,939
	6,070	Scientific Games Corp., Class A(b)		110,960
	968	Sears Hometown and Outlet Stores, Inc.(b)		26,968
	342	Shiloh Industries, Inc.		5,616
	1,520	Shoe Carnival, Inc.		39,505
	3,217	Sinclair Broadcast Group, Inc., Class A		103,137
	3,762	Skechers U.S.A., Inc., Class A(b)		109,625
	6,865	Sonic Automotive, Inc., Class A		152,952
	4,392	Sonic Corp.(b)		84,766
	4,617	Spartan Motors, Inc.		31,349
	899	Speedway Motorsports, Inc.		16,416
	2,732	Stage Stores, Inc.		56,416
	1,302	Standard Motor Products, Inc.		47,080
	2,246	Standard Pacific Corp.(b)		17,811
	7,250	Starz, Class A(b)		218,588
	3,577	Stein Mart, Inc.		52,832
	4,911	Stewart Enterprises, Inc., Class A		64,874
	4,325	Stoneridge, Inc.(b)		55,187
	2,703	Superior Industries International, Inc.		50,681
	995	Systemax, Inc.		9,453
	3,598	Thor Industries, Inc.		208,720
	889	Tower International, Inc.(b)		18,865
	2,998	Town Sports International Holdings, Inc.		38,734
	8,846	TravelCenters of America LLC(b)		73,510
	4,834	Tuesday Morning Corp.(b)		68,401
	1,001	Unifi, Inc.(b)		24,414
	2,059	Universal Technical Institute, Inc.		27,364
	3,445	VOXX International Corp.(b)		53,432
	1,309	West Marine, Inc.(b)		15,983
	11,631	Wet Seal, Inc. (The), Class A(b)		38,499
	547	Weyco Group, Inc.		15,715
	4,415	Williams-Sonoma, Inc.		231,523
	1,113	Winnebago Industries, Inc.(b)		33,012
	4,729	World Wrestling Entertainment, Inc., Class A		61,241
	17,870	Zale Corp.(b)		279,308
				12,807,934
		Consumer Staples—3.4%
	8,103	Alliance One International, Inc.(b)		24,066
	37	Arden Group, Inc., Class A		4,810
	9,350	Central Garden & Pet Co., Class A(b)		68,816
	23,925	Chiquita Brands International, Inc.(b)		247,624
	568	Coca-Cola Bottling Co. Consolidated		35,966
	1,554	Elizabeth Arden, Inc.(b)		56,239
	470	Farmer Brothers Co.(b)		8,488

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

36

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

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Staples (continued)
	4,351	Fresh Del Monte Produce, Inc.	$	115,693
	3,942	Harris Teeter Supermarkets, Inc.		194,419
	1,917	Ingles Markets, Inc., Class A		49,478
	929	John B. Sanfilippo & Son, Inc.		22,835
	1,065	Lancaster Colony Corp.		88,384
	2,517	Nash Finch Co.		70,627
	1,180	National Beverage Corp.		21,606
	692	Nature’s Sunshine Products, Inc.		13,072
	849	Nutraceutical International Corp.		20,418
	354	Oil-Dri Corp. of America		12,563
	4,433	Pilgrim’s Pride Corp. (Brazil)(b)		62,816
	3,545	Post Holdings, Inc.(b)		152,258
	1,973	Prestige Brands Holdings, Inc.(b)		61,617
	799	Revlon, Inc., Class A(b)		18,976
	14,396	Roundy’s, Inc.		133,883
	969	Seneca Foods Corp., Class A(b)		28,411
	2,648	Spartan Stores, Inc.		62,307
	740	Tootsie Roll Industries, Inc.		23,680
	3,049	Universal Corp.		161,689
	6,736	Vector Group Ltd.(c)		108,921
	592	Village Super Market, Inc., Class A		21,703
	1,137	Weis Markets, Inc.		58,180
				1,949,545
		Energy—5.2%
	314	Adams Resources & Energy, Inc.		16,256
	2,379	Alon USA Energy, Inc. (Israel)		28,738
	5,323	Basic Energy Services, Inc.(b)		78,088
	6,914	Bill Barrett Corp.(b)(c)		191,310
	36,368	Cal Dive International, Inc.(b)(c)		71,645
	4,550	Callon Petroleum Co.(b)		31,077
	7,854	Cloud Peak Energy, Inc.(b)		122,601
	5,940	Comstock Resources, Inc.		101,633
	5,403	Crosstex Energy, Inc.		165,818
	789	Dawson Geophysical Co.(b)		23,070
	4,950	Endeavour International Corp.(b)(c)		29,403
	1,711	EPL Oil & Gas, Inc.(b)		54,547
	13,400	EXCO Resources, Inc.		72,494
	32,880	Forest Oil Corp.(b)		155,851
	1,034	Gulf Island Fabrication, Inc.		26,078
	2,339	Gulfmark Offshore, Inc., Class A		116,435
	3,012	Harvest Natural Resources, Inc.(b)(c)		15,060
	13,380	Hercules Offshore, Inc.(b)		90,984
	2,175	Hornbeck Offshore Services, Inc.(b)		120,212
	7,133	ION Geophysical Corp.(b)		33,097
	18,590	Key Energy Services, Inc.(b)		145,374
	835	Natural Gas Services Group, Inc.(b)		23,372
	7,009	Newpark Resources, Inc.(b)		89,365
	18,452	Parker Drilling Co.(b)		132,854
	19,081	Penn Virginia Corp.(b)		162,379
	8,299	PetroQuest Energy, Inc.(b)		39,171
	1,297	PHI, Inc.(b)		51,647
	7,925	Pioneer Energy Services Corp.(b)		66,570
	60,754	Quicksilver Resources, Inc.(b)(c)		130,014
	765	REX American Resources Corp.(b)		22,063
	5,802	Stone Energy Corp.(b)		202,258

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Energy (continued)
	7,985	Swift Energy Co.(b)	$	109,554
	2,901	Tesco Corp.(b)		49,839
	9,895	TETRA Technologies, Inc.(b)		128,338
	3,945	W&T Offshore, Inc.		75,310
				2,972,505
		Financials—22.6%
	1,008	1st Source Corp.		31,631
	642	Agree Realty Corp. REIT		20,268
	7,742	American Equity Investment Life Holding Co.		161,343
	486	American National Bankshares, Inc.		11,149
	1,319	Ameris Bancorp(b)		24,138
	1,078	AMERISAFE, Inc.		41,503
	497	Ames National Corp.		11,197
	2,686	Arbor Realty Trust, Inc. REIT		17,862
	805	Arlington Asset Investment Corp., Class A		19,859
	942	Arrow Financial Corp.(c)		24,313
	8,611	Ashford Hospitality Trust, Inc. REIT		112,460
	14,273	Astoria Financial Corp.		188,546
	704	AV Homes, Inc.(b)		13,446
	622	Baldwin & Lyons, Inc., Class B		16,999
	469	BancFirst Corp.		26,062
	9,275	BancorpSouth, Inc.		204,977
	4,492	Bank Mutual Corp.		28,569
	3,722	Bank of Hawaii Corp.		215,802
	895	BankFinancial Corp.		8,315
	1,071	Banner Corp.		40,977
	15,743	BGC Partners, Inc., Class A		83,753
	1,493	BOK Financial Corp.		91,416
	4,818	Boston Private Financial Holdings, Inc.		54,877
	6,258	Brookline Bancorp, Inc.		55,508
	3,885	Calamos Asset Management, Inc., Class A		38,151
	656	Camden National Corp.		26,470
	922	Capital City Bank Group, Inc.(b)		11,341
	4,627	Cathay General Bancorp		113,963
	6,945	Cedar Realty Trust, Inc. REIT		39,656
	2,504	Central Pacific Financial Corp.(b)		46,124
	158	Century Bancorp, Inc., Class A		5,135
	688	Charter Financial Corp.		7,458
	1,928	Chemical Financial Corp.		56,471
	684	Citizens & Northern Corp.		13,516
	1,234	City Holding Co.		56,147
	3,262	City National Corp.		235,223
	2,551	CNA Financial Corp.		103,545
	2,133	CoBiz Financial, Inc.		23,143
	1,121	Community Trust Bancorp, Inc.		47,743
	659	CommunityOne Bancorp(b)		7,091
	6,511	Cousins Properties, Inc. REIT		73,770
	7,867	Cowen Group, Inc., Class A(b)		31,232
	2,311	Crawford & Co., Class B		25,398
	6,790	CVB Financial Corp.		98,727
	18,892	DCT Industrial Trust, Inc. REIT		146,413
	15,472	DiamondRock Hospitality Co. REIT		176,226
	2,627	Dime Community Bancshares, Inc.		42,978
	710	Donegal Group, Inc., Class A		11,253
	528	EMC Insurance Group, Inc.		17,973

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

37

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

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	2,301	Employers Holdings, Inc.	$	69,191
	387	Enterprise Bancorp, Inc.		7,562
	524	ESB Financial Corp.		6,974
	11,685	F.N.B. Corp.		146,179
	1,124	FBL Financial Group, Inc., Class A		50,288
	799	FBR & Co.(b)		21,173
	548	Federal Agricultural Mortgage Corp., Class C		19,558
	10,566	FelCor Lodging Trust, Inc. REIT(b)		71,004
	759	Fidelity Southern Corp.(b)		11,590
	941	Financial Institutions, Inc.		22,273
	1,725	First Bancorp		25,840
	734	First Bancorp, Inc.		12,779
	6,559	First Busey Corp.		33,910
	454	First Citizens BancShares, Inc., Class A		96,125
	9,756	First Commonwealth Financial Corp.		84,780
	1,353	First Community Bancshares, Inc.		22,582
	796	First Defiance Financial Corp.		20,553
	874	First Financial Corp.		30,188
	881	First Financial Northwest, Inc.		9,550
	1,510	First Interstate BancSystem, Inc.		37,916
	2,456	First Merchants Corp.		46,173
	6,863	First Midwest Bancorp, Inc.		114,132
	17,627	FirstMerit Corp.		395,902
	1,640	Flagstar Bancorp, Inc.(b)		26,584
	5,761	Forest City Enterprises, Inc., Class A(b)		116,718
	1,686	Forestar Group, Inc.(b)		37,648
	5,267	Franklin Street Properties Corp. REIT		69,524
	3,270	FXCM, Inc., Class A		53,595
	1,501	Gain Capital Holdings, Inc.		15,715
	7,251	GFI Group, Inc.		25,161
	5,096	Glacier Bancorp, Inc.		140,802
	959	Gladstone Commercial Corp. REIT		18,125
	10,632	Gramercy Property Trust, Inc. REIT(b)		48,588
	888	Great Southern Bancorp, Inc.		24,935
	1,007	Guaranty Bancorp		13,595
	933	Hallmark Financial Services, Inc.(b)		7,940
	1,620	Hanmi Financial Corp.		28,318
	4,652	Healthcare Realty Trust, Inc. REIT		111,695
	1,066	Heartland Financial USA, Inc.		28,238
	1,020	Heritage Commerce Corp.		7,946
	4,688	Highwoods Properties, Inc. REIT		180,957
	1,785	Hilltop Holdings, Inc.(b)		30,952
	320	HomeStreet, Inc.		6,086
	879	HomeTrust Bancshares, Inc.(b)		14,196
	4,426	Horace Mann Educators Corp.		122,600
	505	Horizon Bancorp		10,964
	1,206	Hudson Valley Holding Corp.		22,299
	341	Independence Holding Co.		4,679
	1,230	Infinity Property & Casualty Corp.		84,353
	6,916	Inland Real Estate Corp. REIT		73,932
	11,876	Interactive Brokers Group, Inc., Class A		245,002
	5,487	International Bancshares Corp.		125,378
	6,598	Investment Technology Group, Inc.(b)		105,700
	7,452	Investors Real Estate Trust REIT		64,236
	18,036	iStar Financial, Inc. REIT(b)		227,795
	10,294	Janus Capital Group, Inc.		101,602

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	357	Kansas City Life Insurance Co.	$	16,386
	12,571	KCG Holdings, Inc., Class A(b)		109,871
	5,731	Kite Realty Group Trust REIT		36,678
	1,622	Lakeland Bancorp, Inc.		18,491
	1,226	MainSource Financial Group, Inc.		19,886
	3,930	MB Financial, Inc.		116,721
	5,017	MBIA, Inc.(b)		57,043
	419	Merchants Bancshares, Inc.		12,562
	3,987	Mercury General Corp.		185,635
	978	Metro Bancorp, Inc.(b)		20,871
	737	MetroCorp Bancshares, Inc.		10,561
	19,106	MGIC Investment Corp.(b)		155,523
	402	MidSouth Bancorp, Inc.		6,102
	196	NASB Financial, Inc.(b)		5,047
	342	National Bankshares, Inc.		12,021
	8,120	National Penn Bancshares, Inc.		84,204
	156	National Western Life Insurance Co., Class A		32,448
	1,133	Navigators Group, Inc. (The)(b)		63,720
	3,249	NBT Bancorp, Inc.		79,178
	2,371	Nelnet, Inc., Class A		101,076
	6,893	New Residential Investment Corp. REIT		45,563
	6,841	Newcastle Investment Corp. REIT		39,267
	7,658	Northwest Bancshares, Inc.		107,135
	1,323	OceanFirst Financial Corp.		23,272
	7,552	Old National Bancorp		109,806
	813	One Liberty Properties, Inc. REIT		17,187
	3,546	OneBeacon Insurance Group Ltd., Class A		56,594
	935	Oppenheimer Holdings, Inc., Class A		18,541
	1,240	Pacific Continental Corp.		17,087
	1,907	PacWest Bancorp(c)		72,561
	1,135	Park National Corp.		89,915
	1,397	Parkway Properties, Inc. REIT		25,300
	257	Penns Woods Bancorp, Inc.		13,158
	5,130	Pennsylvania Real Estate Investment Trust REIT		93,007
	850	Peoples Bancorp, Inc.		19,057
	1,383	Phoenix Cos., Inc. (The)(b)		53,342
	1,175	PICO Holdings, Inc.(b)		27,589
	1,377	Piper Jaffray Cos., Inc.(b)		49,421
	2,497	Potlatch Corp. REIT		101,953
	666	Preferred Bank(b)		12,801
	5,403	Primerica, Inc.		232,059
	591	Provident Financial Holdings, Inc.		8,960
	4,893	Provident Financial Services, Inc.		91,695
	9,128	Provident New York Bancorp(b)		106,980
	7,676	Radian Group, Inc.		111,839
	13,920	RAIT Financial Trust REIT		105,096
	3,200	Ramco-Gershenson Properties Trust REIT		52,032
	7,309	Redwood Trust, Inc. REIT(c)		128,054
	1,754	Renasant Corp.		50,305
	954	Republic Bancorp, Inc., Class A		21,961
	715	Resource America, Inc., Class A		6,170
	6,482	Retail Properties of America, Inc., Class A REIT		92,757
	1,852	RLI Corp.		174,977
	589	Rouse Properties, Inc. REIT(c)		11,910
	2,748	S&T Bancorp, Inc.		67,381
	952	S.Y. Bancorp, Inc.		28,570

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

38

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

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	2,689	Sabra Health Care REIT, Inc. REIT	$	72,334
	1,282	Safety Insurance Group, Inc.		70,113
	1,561	Sandy Spring Bancorp, Inc.		38,229
	5,120	Seacoast Banking Corp. of Florida(b)		11,674
	5,457	Selective Insurance Group, Inc.		143,355
	763	Sierra Bancorp		14,444
	1,393	Simmons First National Corp., Class A		45,607
	1,542	Southwest Bancorp, Inc.(b)		24,687
	1,254	State Auto Financial Corp.		23,826
	2,416	State Bank Financial Corp.		41,217
	1,927	StellarOne Corp.		44,861
	1,993	Sterling Financial Corp.		57,717
	2,180	Stewart Information Services Corp.		68,278
	5,977	Strategic Hotels & Resorts, Inc. REIT(b)		52,000
	1,004	Suffolk Bancorp(b)		19,628
	9,176	Sunstone Hotel Investors, Inc. REIT		121,582
	13,721	Susquehanna Bancshares, Inc.		161,702
	5,028	SWS Group, Inc.(b)		28,308
	12,715	Symetra Financial Corp.		238,152
	672	Taylor Capital Group, Inc.(b)		15,456
	701	Tompkins Financial Corp.		34,573
	1,859	TowneBank		27,067
	1,184	TriCo Bancshares		29,943
	10,135	TrustCo Bank Corp. NY		68,107
	4,987	Trustmark Corp.		135,447
	1,110	UMH Properties, Inc. REIT		11,167
	9,990	Umpqua Holdings Corp.(c)		163,536
	1,458	Union First Market Bankshares Corp.		35,167
	4,183	United Bankshares, Inc.(c)		123,733
	2,826	United Community Banks, Inc.(b)		44,057
	1,717	United Fire Group, Inc.		54,429
	4,214	Universal Insurance Holdings, Inc.		33,038
	1,435	Univest Corp. of Pennsylvania		28,657
	1,328	Urstadt Biddle Properties, Inc., Class A REIT		26,215
	1,264	Virginia Commerce Bancorp, Inc.(b)		20,262
	9,509	Washington Federal, Inc.		216,615
	1,001	Washington Trust Bancorp, Inc.		32,923
	6,462	Webster Financial Corp.		180,225
	2,556	WesBanco, Inc.		75,146
	870	West Bancorporation, Inc.		12,023
	1,901	Westamerica Bancorp.(c)		97,863
	2,856	Westfield Financial, Inc.		20,592
	3,458	Wilshire Bancorp, Inc.		29,289
	2,214	Winthrop Realty Trust REIT		26,059
	2,689	Wintrust Financial Corp.		116,998
	552	WSFS Financial Corp.		38,646
				12,914,470
		Health Care—3.5%
	7,134	Affymetrix, Inc.(b)		50,437
	1,525	Albany Molecular Research, Inc.(b)		19,977
	8,307	Amedisys, Inc.(b)		135,238
	3,180	AMN Healthcare Services, Inc.(b)		39,432
	3,091	AmSurg Corp.(b)		132,573
	7,222	Cambrex Corp.(b)		121,474
	2,682	Charles River Laboratories International, Inc.(b)		131,981

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Health Care (continued)
	2,158	CONMED Corp.	$	78,271
	4,584	Cross Country Healthcare, Inc.(b)		27,229
	597	Cutera, Inc.(b)		6,000
	2,716	Enzon Pharmaceuticals, Inc.		4,020
	7,582	Five Star Quality Care, Inc.(b)		38,441
	5,995	Gentiva Health Services, Inc.(b)		68,643
	4,818	Geron Corp.(b)		19,031
	4,359	Healthways, Inc.(b)		41,977
	4,281	Hill-Rom Holdings, Inc.		176,762
	5,200	Invacare Corp.		111,644
	3,073	Magellan Health Services, Inc.(b)		180,385
	565	National Healthcare Corp.		27,335
	4,978	PerkinElmer, Inc.		189,363
	6,138	PharMerica Corp.(b)		90,597
	2,022	Providence Service Corp. (The)(b)		60,438
	3,958	Skilled Healthcare Group, Inc., Class A(b)		16,861
	3,477	STERIS Corp.		157,126
	574	SurModics, Inc.(b)		13,535
	3,133	Symmetry Medical, Inc.(b)		25,377
	7,281	Universal American Corp.		54,025
				2,018,172
		Industrials—19.9%
	6,101	ABM Industries, Inc.		167,839
	9,461	ACCO Brands Corp.(b)		55,347
	9,260	Accuride Corp.(b)		41,670
	1,726	Aceto Corp.		27,530
	1,751	Acuity Brands, Inc.		175,993
	5,325	Air Transport Services Group, Inc.(b)		38,553
	11,779	Aircastle Ltd.		222,270
	459	Alamo Group, Inc.		21,660
	2,054	Albany International Corp., Class A		75,608
	340	AMERCO		68,656
	342	American Railcar Industries, Inc.(c)		14,008
	466	American Woodmark Corp.(b)		15,807
	746	Ampco-Pittsburgh Corp.		13,734
	1,668	Apogee Enterprises, Inc.		52,175
	6,143	Arkansas Best Corp.		168,134
	3,171	Armstrong World Industries, Inc.(b)		169,427
	1,540	Astec Industries, Inc.		52,067
	2,963	Atlas Air Worldwide Holdings, Inc.(b)		109,720
	3,252	Barnes Group, Inc.		115,576
	3,197	BlueLinx Holdings, Inc.(b)		5,946
	3,696	Brady Corp., Class A		107,886
	5,244	Briggs & Stratton Corp.		96,175
	5,601	Brink’s Co. (The)		175,871
	2,547	Builders FirstSource, Inc.(b)		18,873
	8,199	Casella Waste Systems, Inc., Class A(b)		48,456
	6,004	CBIZ, Inc.(b)		48,993
	1,640	CDI Corp.		26,322
	1,558	Celadon Group, Inc.		28,885
	27,777	Cenveo, Inc.(b)		87,220
	986	CIRCOR International, Inc.		72,737
	949	Coleman Cable, Inc.		23,345
	1,703	Columbus McKinnon Corp.(b)		44,295
	4,058	Comfort Systems USA, Inc.		75,601

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

39

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

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrials (continued)
	2,629	Commercial Vehicle Group, Inc.(b)	$	20,690
	1,529	Consolidated Graphics, Inc.(b)		97,994
	1,202	Corporate Executive Board Co. (The)		87,626
	8,732	Covanta Holding Corp.		149,928
	1,220	CRA International, Inc.(b)		23,241
	2,766	Crane Co.		175,641
	3,666	Curtiss-Wright Corp.		182,493
	3,598	Deluxe Corp.		169,430
	1,952	DigitalGlobe, Inc.(b)		62,113
	1,528	Ducommun, Inc.(b)		37,986
	3,295	Dycom Industries, Inc.(b)		97,697
	1,389	Encore Wire Corp.		68,797
	3,106	Ennis, Inc.		55,132
	1,381	EnPro Industries, Inc.(b)		82,404
	5,370	Federal Signal Corp.(b)		73,515
	593	Franklin Covey Co.(b)		11,148
	1,060	FreightCar America, Inc.		23,574
	4,179	FTI Consulting, Inc.(b)		169,584
	1,470	G&K Services, Inc., Class A		91,728
	2,767	Gibraltar Industries, Inc.(b)		44,300
	2,034	Global Power Equipment Group, Inc.		41,412
	18,463	GrafTech International Ltd.(b)(c)		164,321
	3,768	Granite Construction, Inc.		121,895
	2,309	Greenbrier Cos., Inc.(b)		61,281
	5,610	Griffon Corp.		70,293
	2,813	H&E Equipment Services, Inc.		70,409
	11,904	Hawaiian Holdings, Inc.(b)(c)		98,208
	4,357	Heartland Express, Inc.		62,567
	2,416	Heidrick & Struggles International, Inc.		44,744
	3,227	Herman Miller, Inc.		97,907
	3,707	HNI Corp.		144,017
	1,592	Houston Wire & Cable Co.		22,081
	1,840	Hudson Global, Inc.(b)		5,980
	502	Hurco Cos., Inc.		12,294
	2,206	Insperity, Inc.		85,306
	1,127	Insteel Industries, Inc.		18,697
	1,057	Intersections, Inc.		9,058
	2,127	John Bean Technologies Corp.		57,812
	1,011	Kadant, Inc.		36,194
	6,621	Kelly Services, Inc., Class A		138,114
	4,740	Kennametal, Inc.		218,040
	2,764	Kforce, Inc.		54,423
	5,341	Kimball International, Inc., Class B		62,490
	4,034	Knight Transportation, Inc.		68,457
	3,205	Knoll, Inc.		52,626
	3,709	Korn/Ferry International(b)		88,274
	3,183	Layne Christensen Co.(b)		61,559
	2,433	Lennox International, Inc.		189,920
	1,819	LSI Industries, Inc.		16,753
	1,224	Lydall, Inc.(b)		22,301
	9,110	Manitowoc Co., Inc. (The)		177,281
	6,232	Matson, Inc.		168,825
	1,793	McGrath RentCorp		63,956
	32,683	Meritor, Inc.(b)		224,532
	1,001	Miller Industries, Inc.		18,759
	1,696	Mine Safety Appliances Co.		81,679

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrials (continued)
	2,281	Mobile Mini, Inc.(b)	$	82,390
	3,452	Moog, Inc., Class A(b)		206,188
	4,308	MRC Global, Inc.(b)		120,409
	2,196	Mueller Industries, Inc.		132,397
	13,702	Mueller Water Products, Inc., Class A		117,426
	1,665	MYR Group, Inc.(b)		44,039
	738	National Presto Industries, Inc.		52,066
	5,130	Navigant Consulting, Inc.(b)		89,006
	3,161	NCI Building Systems, Inc.(b)		45,613
	469	NL Industries, Inc.		5,469
	1,838	NN, Inc.		29,555
	863	Nortek, Inc.(b)		60,557
	1,210	Northwest Pipe Co.(b)		43,596
	5,666	Orbital Sciences Corp.(b)		130,715
	2,572	Orion Marine Group, Inc.(b)		32,150
	1,202	Park-Ohio Holdings Corp.(b)		49,775
	410	Patriot Transportation Holding, Inc.(b)		15,158
	1,601	Pike Electric Corp.		17,307
	557	Powell Industries, Inc.(b)		34,996
	952	PowerSecure International, Inc.(b)		17,212
	3,417	Quad/Graphics, Inc.		119,322
	3,809	Quality Distribution, Inc.(b)		39,157
	2,886	Quanex Building Products Corp.		51,313
	13,099	Republic Airways Holdings, Inc.(b)		154,306
	3,813	Resources Connection, Inc.		48,654
	1,707	Rexnord Corp.(b)		40,149
	3,630	Rush Enterprises, Inc., Class A(b)		103,891
	2,381	Saia, Inc.(b)		77,454
	1,065	Schawk, Inc.		15,570
	2,174	Simpson Manufacturing Co., Inc.		77,068
	12,557	SkyWest, Inc.		188,857
	14,860	Southwest Airlines Co.		255,889
	542	Sparton Corp.(b)		14,303
	1,015	Standard Parking Corp.(b)		26,867
	679	Standex International Corp.		41,765
	8,427	Steelcase, Inc., Class A		138,119
	1,617	Sterling Construction Co., Inc.(b)		15,523
	2,189	Toro Co. (The)		129,020
	287	Trex Co., Inc.(b)		20,153
	1,836	Trimas Corp.(b)		69,511
	3,063	TrueBlue, Inc.(b)		75,656
	11,255	Tutor Perini Corp.(b)		258,302
	697	Twin Disc, Inc.		18,031
	4,518	United Stationers, Inc.		200,780
	1,823	Universal Forest Products, Inc.		96,473
	4,311	USG Corp.(b)		117,733
	10,704	UTi Worldwide, Inc.		162,701
	1,717	Viad Corp.		45,844
	2,122	Vicor Corp.(b)		18,695
	2,856	Wabash National Corp.(b)		33,301
	1,655	Watts Water Technologies, Inc., Class A		95,626
	5,574	Werner Enterprises, Inc.		129,094
				11,329,016
		Information Technology—11.7%
	4,749	Acxiom Corp.(b)		157,809

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

40

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

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	1,791	Advanced Energy Industries, Inc.(b)	$	37,396
	1,504	Aeroflex Holding Corp.(b)		11,656
	1,183	Agilysys, Inc.(b)		13,900
	1,657	American Software, Inc., Class A		14,499
	22,770	Amkor Technology, Inc.(b)		120,909
	7,058	ANADIGICS, Inc.(b)		14,257
	834	Anaren, Inc.(b)		20,833
	1,827	Applied Micro Circuits Corp.(b)		21,303
	5,991	ARRIS Group, Inc.(b)		106,999
	1,806	ATMI, Inc.(b)		49,376
	7,536	Aviat Networks, Inc.(b)		15,524
	5,581	Avid Technology, Inc.(b)		41,578
	4,222	AVX Corp. (Japan)		55,941
	1,024	Bel Fuse, Inc., Class B		21,545
	2,009	Belden, Inc.		135,125
	8,475	Benchmark Electronics, Inc.(b)		192,637
	2,187	Black Box Corp.		54,762
	7,656	Broadridge Financial Solutions, Inc.		269,185
	3,601	CACI International, Inc., Class A(b)		259,200
	5,346	Cadence Design Systems, Inc.(b)		69,338
	4,969	Checkpoint Systems, Inc.(b)		84,572
	7,353	CIBER, Inc.(b)		23,897
	2,119	Cohu, Inc.		20,258
	9,932	Compuware Corp.		106,074
	10,720	Convergys Corp.		211,613
	2,636	CSG Systems International, Inc.		73,439
	3,346	CTS Corp.		62,303
	2,455	Cypress Semiconductor Corp.(b)		22,782
	2,885	Daktronics, Inc.		34,505
	2,225	Digi International, Inc.(b)		22,428
	3,384	Digital River, Inc.(b)		60,371
	18,599	EarthLink, Inc.		94,111
	1,511	Electro Rent Corp.		27,410
	2,120	Electro Scientific Industries, Inc.		25,398
	2,048	Electronics for Imaging, Inc.(b)		70,267
	1,592	EMCORE Corp.(b)(c)		8,485
	8,122	Emulex Corp.(b)		61,159
	5,882	Entegris, Inc.(b)		60,879
	423	ePlus, Inc.		22,994
	4,425	Extreme Networks, Inc.(b)		23,718
	1,304	Fair Isaac Corp.		74,693
	11,158	Fairchild Semiconductor International, Inc.(b)		141,372
	4,739	FormFactor, Inc.(b)		24,738
	3,786	Freescale Semiconductor Ltd.(b)		58,456
	5,227	Global Cash Access Holdings, Inc.(b)		43,384
	2,264	GSI Group, Inc.(b)		22,595
	9,035	Integrated Device Technology, Inc.(b)		96,132
	5,388	International Rectifier Corp.(b)		140,304
	16,145	Intersil Corp., Class A		180,178
	1,688	IXYS Corp.		19,631
	7,633	Kemet Corp.(b)		43,279
	6,836	Lender Processing Services, Inc.		235,979
	4,347	Lionbridge Technologies, Inc.(b)		18,953
	24,514	LSI Corp.(b)		207,879
	3,061	Mercury Systems, Inc.(b)		28,222
	2,535	Methode Electronics, Inc.		64,845

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	522	MoneyGram International, Inc.(b)	$	11,019
	22,620	Monster Worldwide, Inc.(b)		97,718
	1,411	Multi-Fineline Electronix, Inc. (Singapore)(b)		18,922
	2,451	Newport Corp.(b)		38,897
	1,509	Park Electrochemical Corp.		42,327
	2,473	Pericom Semiconductor Corp.(b)		19,982
	9,035	Photronics, Inc.(b)		75,894
	4,398	Plexus Corp.(b)		168,355
	1,245	PLX Technology, Inc.(b)		7,520
	1,877	PRGX Global, Inc.(b)		13,477
	7,524	QLogic Corp.(b)		92,921
	29,826	Quantum Corp.(b)		36,984
	2,389	RealNetworks, Inc.(b)		18,324
	17,030	RF Micro Devices, Inc.(b)		89,407
	1,117	Richardson Electronics Ltd.		12,868
	1,846	Rofin-Sinar Technologies, Inc.(b)		48,457
	746	Rogers Corp.(b)		45,476
	1,404	Rudolph Technologies, Inc.(b)		14,882
	3,695	ScanSource, Inc.(b)		142,110
	4,507	Sigma Designs, Inc.(b)		24,518
	3,996	Silicon Image, Inc.(b)		20,979
	11,973	Sonus Networks, Inc.(b)		35,919
	5,778	Spansion, Inc., Class A(b)		69,163
	30,444	SunEdison, Inc.(b)		283,129
	3,867	SunPower Corp. (France)(b)(c)		116,745
	507	Supertex, Inc.		12,934
	3,943	Symmetricom, Inc.(b)		28,271
	4,557	Take-Two Interactive Software, Inc.(b)		81,616
	1,844	TeleTech Holdings, Inc.(b)		48,811
	53,070	Tellabs, Inc.		129,491
	8,831	Teradyne, Inc.(b)		154,454
	3,557	Tessera Technologies, Inc.		67,654
	2,276	Ultra Clean Holdings, Inc.(b)		21,190
	11,619	United Online, Inc.		141,639
	10,851	Unwired Planet, Inc.(b)		17,579
	2,285	ValueClick, Inc.(b)		43,895
	371	Viasystems Group, Inc.(b)		5,565
	955	Vishay Precision Group, Inc.(b)		15,662
	1,286	XO Group, Inc.(b)		17,850
	2,164	Zebra Technologies Corp., Class A(b)		104,543
	664	Zygo Corp.(b)		10,252
				6,648,474
		Materials—5.1%
	2,808	A. Schulman, Inc.		93,001
	2,547	A.M. Castle & Co.(b)		36,448
	364	AEP Industries, Inc.(b)		21,629
	1,773	AMCOL International Corp.		56,878
	489	American Pacific Corp.(b)		22,259
	2,511	Carpenter Technology Corp.		148,978
	9,272	Century Aluminum Co.(b)		80,481
	7,922	Chemtura Corp.(b)		194,089
	14,964	Ferro Corp.(b)		191,988
	2,971	Greif, Inc., Class A		158,919
	2,295	H.B. Fuller Co.		109,862
	4,961	Headwaters, Inc.(b)		43,309

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

41

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

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Materials (continued)
	3,999	Horsehead Holding Corp.(b)	$	58,025
	3,976	Louisiana-Pacific Corp.(b)		67,632
	2,337	Materion Corp.		69,666
	1,888	Minerals Technologies, Inc.		106,917
	2,824	Myers Industries, Inc.		50,324
	1,343	Neenah Paper, Inc.		55,251
	8,660	Noranda Aluminum Holding Corp.		23,555
	7,206	Olin Corp.		162,207
	1,708	Olympic Steel, Inc.		46,748
	5,192	OM Group, Inc.(b)		176,528
	4,610	P.H. Glatfelter Co.		120,782
	2,023	RTI International Metals, Inc.(b)		68,580
	4,226	Schnitzer Steel Industries, Inc., Class A		122,723
	3,550	Sensient Technologies Corp.		185,061
	6,033	SunCoke Energy, Inc.(b)		120,660
	687	Texas Industries, Inc.(b)		36,892
	1,499	Tredegar Corp.		43,801
	531	Universal Stainless & Alloy Products, Inc.(b)		17,162
	1,942	US Concrete, Inc.(b)		42,433
	4,820	Wausau Paper Corp.		56,394
	3,636	Worthington Industries, Inc.		147,403
				2,936,585
		Telecommunication Services—1.8%
	3,769	Cbeyond, Inc.(b)		24,272
	41,591	Cincinnati Bell, Inc.(b)		118,950
	4,234	Consolidated Communications Holdings, Inc.		78,880
	5,795	Fairpoint Communications, Inc.(b)(c)		54,125
	4,408	General Communication, Inc., Class A(b)		41,920
	667	Hawaiian Telcom Holdco, Inc.(b)		17,729
	23,033	Leap Wireless International, Inc.(b)		370,831
	4,619	NTELOS Holdings Corp.		87,946
	3,861	Premiere Global Services, Inc.(b)		34,788
	2,164	United States Cellular Corp.		104,738
	5,197	USA Mobility, Inc.		77,539
				1,011,718
		Utilities—4.3%
	2,992	ALLETE, Inc.		151,186
	6,455	Avista Corp.		179,384
	3,627	Black Hills Corp.		183,961
	3,081	California Water Service Group		67,166
	4,792	Empire District Electric Co. (The)		107,772
	3,932	IDACORP, Inc.		202,891
	2,711	Laclede Group, Inc. (The)		127,607
	1,564	MGE Energy, Inc.		88,069
	1,130	Middlesex Water Co.		23,425
	3,848	New Jersey Resources Corp.		177,123
	2,757	Northwest Natural Gas Co.		119,737
	3,640	NorthWestern Corp.		166,858
	3,264	Otter Tail Corp.		97,365
	5,925	Piedmont Natural Gas Co., Inc.		202,279
	1,178	SJW Corp.		33,255
	1,888	South Jersey Industries, Inc.		112,430
	4,056	Southwest Gas Corp.		220,079
	1,194	Unitil Corp.		36,083

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Utilities (continued)
	3,296	UNS Energy Corp.	$	163,086
				2,459,756
		Total Common Stocks and Other Equity Interests (Cost $45,050,771)		57,048,175
		Money Market Fund—0.2%
	100,765	Premier Portfolio—Institutional Class(d) (Cost $100,765)		100,765
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $45,151,536)—100.1%		57,148,940
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—3.5%
	1,980,117	Invesco Liquid Assets Portfolio—Institutional Class (Cost $1,980,117)(d)(e)		1,980,117
		Total Investments (Cost $47,131,653)—103.6%		59,129,057
		Other assets less liabilities—(3.6)%		(2,055,510	)
		Net Assets—100.0%	$	57,073,547

Investment Abbreviations:

REIT—Real Estate Investment Trust

Notes to Schedule of Investments:

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

^(b)  Non-income producing security.

^(c)  All or a portion of this security was out on loan at October 31, 2013.

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

^(e)  The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2G.

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

42

Portfolio Composition

PowerShares Zacks Micro Cap Portfolio (PZI)

Sector Breakdown (% of the Fund’s Net Assets) as of October 31, 2013 (Unaudited)
Financials	31.4
Industrials	17.4
Consumer Discretionary	15.3
Information Technology	14.2
Energy	8.2
Health Care	7.9
Materials	2.4
Consumer Staples	1.7
Telecommunication Services	1.3
Utilities	0.2
Money Market Funds Plus Other Assets Less Liabilities	0.0

Schedule of Investments^(a)

PowerShares Zacks Micro Cap Portfolio (PZI)

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—15.3%
	17,685	AH Belo Corp., Class A	$	142,187
	8,575	Bassett Furniture Industries, Inc.		120,050
	8,576	Big 5 Sporting Goods Corp.		162,172
	336	Biglari Holdings, Inc.(b)		146,503
	11,342	Black Diamond, Inc.(b)		169,109
	19,373	Callaway Golf Co.		163,314
	49,968	Career Education Corp.(b)		273,825
	6,246	Carmike Cinemas, Inc.(b)		142,971
	7,108	Carriage Services, Inc.		142,800
	18,466	China Automotive Systems, Inc. (China)(b)		126,492
	19,129	Christopher & Banks Corp.(b)		110,374
	7,889	Citi Trends, Inc.(b)		115,810
	2,089	Core-Mark Holding Co., Inc.		147,755
	63,391	Corinthian Colleges, Inc.(b)		135,657
	5,744	CSS Industries, Inc.		148,712
	8,332	Delta Apparel, Inc.(b)		157,475
	21,319	Destination XL Group, Inc.(b)		148,167
	10,671	Digital Generation, Inc.(b)		134,988
	12,380	Dixie Group, Inc. (The)(b)		155,988
	7,519	E.W. Scripps Co. (The), Class A(b)		149,027
	15,706	Entercom Communications Corp., Class A(b)(c)		137,742
	8,871	Fred’s, Inc., Class A		143,710
	7,061	Fuel Systems Solutions, Inc.(b)		126,816
	17,685	Gray Television, Inc.(b)		149,438
	5,622	Haverty Furniture Cos., Inc.		156,348
	7,700	hhgregg, Inc.(b)		119,427
	35,360	Iao Kun Group Holdings Co. Ltd. (Hong Kong)		118,102
	16,237	Journal Communications, Inc., Class A(b)		135,579

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Discretionary (continued)
	7,479	Kirkland’s, Inc.(b)	$	132,752
	9,080	Lifetime Brands, Inc.		142,193
	30,114	Lincoln Educational Services Corp.		143,945
	11,305	MarineMax, Inc.(b)		166,523
	9,436	Modine Manufacturing Co.(b)		125,687
	7,268	Monarch Casino & Resort, Inc.(b)		122,902
	19,105	Nautilus, Inc.(b)		152,076
	7,319	Perry Ellis International, Inc.		139,134
	40,711	RadioShack Corp.(b)(c)		114,398
	6,816	Remy International, Inc.		150,156
	11,702	Rick’s Cabaret International, Inc.(b)		132,116
	7,924	Rocky Brands, Inc.		120,128
	18,387	Ruby Tuesday, Inc.(b)		109,035
	11,705	Ruth’s Hospitality Group, Inc.		142,684
	16,657	Salem Communications Corp., Class A		137,587
	37,087	SORL Auto Parts, Inc.(b)		178,388
	7,705	Speedway Motorsports, Inc.		140,693
	4,290	Standard Motor Products, Inc.		155,126
	12,761	Stoneridge, Inc.(b)		162,830
	3,598	Strattec Security Corp.		145,791
	7,735	Superior Industries International, Inc.		145,031
	6,900	Tower International, Inc.(b)		146,418
	29,984	Trans World Entertainment Corp.		129,831
	17,567	TravelCenters of America LLC(b)		145,982
	9,033	Tuesday Morning Corp.(b)		127,817
	5,903	Unifi, Inc.(b)		143,974
	3,834	Universal Electronics, Inc.(b)		149,181
	31,711	ValueVision Media, Inc., Class A(b)		169,337

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

43

PowerShares Zacks Micro Cap Portfolio (PZI) (continued)

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Discretionary (continued)
	10,068	VOXX International Corp.(b)	$	156,155
	11,304	West Marine, Inc.(b)		138,022
	5,315	Winnebago Industries, Inc.(b)		157,643
	9,075	Zale Corp.(b)		141,842
				8,645,915
		Consumer Staples—1.7%
	47,401	Alliance One International, Inc.(b)		140,781
	10,893	Chiquita Brands International, Inc.(b)		112,743
	4,832	Ingles Markets, Inc., Class A		124,714
	5,986	John B. Sanfilippo & Son, Inc.		147,136
	13,651	Omega Protein Corp.(b)		127,773
	6,252	Spartan Stores, Inc.		147,110
	14,189	SunOpta, Inc.(b)		152,815
				953,072
		Energy—8.2%
	2,485	Adams Resources & Energy, Inc.		128,649
	67,278	Cal Dive International, Inc.(b)		132,538
	15,323	Capital Product Partners LP (Greece)(c)		143,423
	6,589	Compressco Partners, LP		143,179
	8,671	Comstock Resources, Inc.		148,361
	6,602	Crosstex Energy, Inc.		202,615
	4,248	Dawson Geophysical Co.(b)		124,212
	29,282	Equal Energy Ltd. (Canada)		138,797
	29,791	Forbes Energy Services Ltd.(b)		148,359
	34,933	Gastar Exploration Ltd.(b)		150,911
	8,594	Green Plains Renewable Energy, Inc.		138,621
	69,672	James River Coal Co.(b)(c)		133,770
	13,559	Knightsbridge Tankers Ltd. (Bermuda)		111,726
	108,608	L&L Energy, Inc.(b)(c)		154,223
	7,034	Matrix Service Co.(b)		146,237
	19,007	Miller Energy Resources, Inc.(b)(c)		128,487
	5,176	Natural Gas Services Group, Inc.(b)		144,876
	37,387	Navios Maritime Acquisition Corp.		149,174
	25,302	North American Energy Partners, Inc. (Canada)		152,318
	24,202	Parker Drilling Co.(b)		174,254
	20,750	Penn Virginia Corp.(b)		176,583
	3,657	PHI, Inc.(b)		145,622
	18,363	Pioneer Energy Services Corp.(b)		154,249
	9,102	Renewable Energy Group, Inc.(b)		99,303
	4,516	REX American Resources Corp.(b)		130,241
	15,102	StealthGas, Inc.(b)		173,673
	14,148	Synergy Resources Corp.(b)		146,573
	8,328	Tesco Corp.(b)		143,075
	14,054	Triangle Petroleum Corp.(b)		148,551
	26,646	Tsakos Energy Navigation Ltd.(c)		133,497
	47,072	Warren Resources, Inc.(b)		147,335
	15,025	Willbros Group, Inc.(b)		146,644
				4,640,076
		Financials—31.4%
	18,814	1st United Bancorp, Inc.		143,739
	7,553	Ameris Bancorp(b)		138,220
	3,909	AMERISAFE, Inc.		150,496
	8,001	Amreit, Inc., Class B REIT		140,818

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	9,032	Apollo Commercial Real Estate Finance, Inc. REIT	$	145,506
	9,452	Apollo Residential Mortgage, Inc. REIT		142,347
	20,342	Arbor Realty Trust, Inc. REIT		135,274
	11,097	Ares Commercial Real Estate Corp. REIT		137,936
	5,799	Arlington Asset Investment Corp., Class A		143,061
	9,971	Banc of California, Inc.		140,691
	5,534	Banco Latinoamericano de Comercio Exterior SA, Class E (Supranational)		145,157
	7,782	Bancorp, Inc. (The)(b)		125,835
	22,141	Bank Mutual Corp.		140,817
	3,638	Banner Corp.		139,190
	5,493	Berkshire Hills Bancorp, Inc.		139,357
	14,533	BlackRock Kelso Capital Corp.		136,465
	5,474	Blackstone Mortgage Trust, Inc., Class A REIT		134,058
	10,338	BNC Bancorp		135,531
	2,134	BofI Holding, Inc.(b)		128,936
	14,654	Brookline Bancorp, Inc.		129,981
	2,850	C&F Financial Corp.		153,643
	13,805	Calamos Asset Management, Inc., Class A		135,565
	4,058	Capital Southwest Corp.		133,386
	8,343	Cardinal Financial Corp.		137,660
	14,342	Centerstate Banks, Inc.		141,412
	12,770	Charter Financial Corp.		138,427
	7,722	Chatham Lodging Trust REIT		145,637
	14,276	CoBiz Financial, Inc.		154,895
	23,265	Consumer Portfolio Services, Inc.(b)		156,341
	4,090	Coresite Realty Corp. REIT		132,680
	39,984	Cowen Group, Inc., Class A(b)		158,736
	7,276	Doral Financial Corp. (Puerto Rico)(b)		122,964
	4,883	Eagle Bancorp, Inc.(b)		129,155
	6,138	Ellington Financial LLC		139,946
	4,570	EMC Insurance Group, Inc.		155,563
	4,637	Employers Holdings, Inc.		139,435
	8,219	Enterprise Financial Services Corp.		148,189
	6,310	Farmers Capital Bank Corp.(b)		129,607
	5,144	FBR & Co.(b)		136,316
	4,132	Federal Agricultural Mortgage Corp., Class C		147,471
	14,491	Federated National Holding Co.(b)		148,533
	9,093	Fidelity Southern Corp.(b)		138,850
	7,108	Fidus Investment Corp.		144,363
	9,607	First Bancorp		143,913
	18,171	First Commonwealth Financial Corp.		157,906
	5,897	First Defiance Financial Corp.		152,261
	13,310	First Financial Northwest, Inc.		144,280
	7,959	First Merchants Corp.		149,629
	7,524	Flushing Financial Corp.		151,157
	6,405	Forestar Group, Inc.(b)		143,024
	7,029	FXCM, Inc., Class A		115,205
	11,027	Gain Capital Holdings, Inc.		115,453
	35,146	GFI Group, Inc.		121,957
	5,453	Global Indemnity PLC(b)		134,307
	7,953	Golub Capital BDC, Inc.		139,973
	33,452	Gramercy Property Trust, Inc. REIT(b)		152,876
	9,310	GSV Capital Corp.(b)(c)		142,350
	3,378	HCI Group, Inc.		148,429

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

44

PowerShares Zacks Micro Cap Portfolio (PZI) (continued)

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	9,103	Hercules Technology Growth Capital, Inc.	$	140,550
	7,918	Heritage Financial Group, Inc.		136,031
	7,186	HomeStreet, Inc.		136,678
	9,725	ICG Group, Inc.(b)		158,615
	21,787	Imperial Holdings, Inc.(b)		127,672
	3,864	Independent Bank Corp.		138,640
	2,135	Infinity Property & Casualty Corp.		146,418
	7,349	Interactive Brokers Group, Inc., Class A		151,610
	17,506	Intervest Bancshares Corp., Class A(b)		127,619
	6,745	INTL FCStone, Inc.(b)		138,003
	8,831	Investment Technology Group, Inc.(b)		141,473
	3,139	Kansas City Life Insurance Co.		144,080
	15,358	Kcap Financial, Inc.		129,468
	23,260	Kite Realty Group Trust REIT		148,864
	12,258	Lakeland Bancorp, Inc.		139,741
	25,804	Macatawa Bank Corp.(b)		126,698
	11,680	Maiden Holdings Ltd.		127,896
	9,139	MainSource Financial Group, Inc.		148,235
	8,268	Manning & Napier, Inc., Class A		137,249
	27,545	MCG Capital Corp.		129,737
	21,220	Meadowbrook Insurance Group, Inc.		140,901
	9,268	Medallion Financial Corp.		140,688
	3,629	Meta Financial Group, Inc.		135,071
	6,566	Metro Bancorp, Inc.(b)		140,118
	10,561	MVC Capital, Inc.		146,059
	683	National Western Life Insurance Co., Class A		142,064
	2,387	Navigators Group, Inc. (The)(b)		134,245
	19,043	Newbridge Bancorp(b)		142,061
	8,520	OFG Bancorp		126,181
	6,800	One Liberty Properties, Inc. REIT		143,752
	7,812	Oppenheimer Holdings, Inc., Class A		154,912
	10,589	Pacific Continental Corp.		145,916
	10,329	Pacific Premier Bancorp, Inc.(b)		143,676
	21,658	Park Sterling Corp.		140,994
	12,247	PennantPark Investment Corp.		137,901
	3,590	Phoenix Cos., Inc. (The)(b)		138,466
	4,022	Piper Jaffray Cos., Inc.(b)		144,350
	16,989	Preferred Apartment Communities, Inc., Class A REIT		140,669
	7,753	Preferred Bank(b)		149,013
	8,305	Provident Financial Holdings, Inc.		125,904
	12,664	Provident New York Bancorp(b)(c)		148,422
	19,608	RAIT Financial Trust REIT		148,040
	4,338	Regional Management Corp.(b)		138,859
	5,077	Renasant Corp.		145,608
	5,006	Republic Bancorp, Inc., Class A		115,238
	23,217	Resource Capital Corp. REIT		142,785
	10,608	Rockville Financial, Inc.		139,495
	2,603	Safety Insurance Group, Inc.		142,358
	22,757	Security National Financial Corp., Class A(b)		133,584
	8,770	Sierra Bancorp		166,016
	9,374	Southwest Bancorp, Inc.(b)		150,078
	4,312	Stewart Information Services Corp.		135,052
	15,006	Summit Hotel Properties, Inc. REIT		137,905
	8,503	TCP Capital Corp.		141,745
	7,764	Terreno Realty Corp. REIT		138,044

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	8,829	THL Credit, Inc.	$	143,471
	6,054	TriCo Bancshares		153,106
	5,901	Union First Market Bankshares Corp.		142,332
	9,195	United Community Banks, Inc.(b)		143,350
	35,451	United Community Financial Corp.(b)		141,804
	4,556	United Fire Group, Inc.		144,425
	19,561	Universal Insurance Holdings, Inc.		153,358
	13,591	Waterstone Financial, Inc.(b)		144,608
	4,640	WesBanco, Inc.		136,416
	16,861	Wilshire Bancorp, Inc.		142,813
	12,370	Winthrop Realty Trust REIT		145,595
	2,289	WSFS Financial Corp.		160,253
	8,057	Yadkin Financial Corp.(b)		132,296
				17,750,183
		Health Care—7.9%
	4,769	Addus HomeCare Corp.(b)		123,279
	22,249	Affymetrix, Inc.(b)		157,300
	10,699	Albany Molecular Research, Inc.(b)		140,157
	70,004	Alphatec Holdings, Inc.(b)		127,407
	8,010	Amedisys, Inc.(b)		130,403
	5,758	Anika Therapeutics, Inc.(b)		171,992
	13,920	Biotelemetry, Inc.(b)		127,229
	46,122	Chelsea Therapeutics International Ltd.(b)		130,525
	36,296	China Cord Blood Corp. (Hong Kong)(b)		150,628
	8,088	Chindex International, Inc.(b)		136,121
	22,757	Cross Country Healthcare, Inc.(b)		135,177
	15,497	Cutera, Inc.(b)		155,745
	5,311	ExamWorks Group, Inc.(b)		137,289
	26,675	Five Star Quality Care, Inc.(b)		135,242
	4,053	Greatbatch, Inc.(b)		154,500
	7,500	Healthways, Inc.(b)		72,225
	5,278	Hyperion Therapeutics, Inc.(b)		105,718
	66,630	Inovio Pharmaceuticals, Inc.(b)(c)		115,270
	8,841	Insmed, Inc.(b)		125,896
	7,985	Invacare Corp.		171,438
	13,668	Keryx Biopharmaceuticals, Inc.(b)		141,464
	10,274	Kindred Healthcare, Inc.(c)		142,603
	6,362	Lannett Co., Inc.(b)		150,207
	5,879	LHC Group, Inc.(b)		121,107
	20,908	Medical Action Industries, Inc.(b)		126,703
	5,825	Omnicell, Inc.(b)		134,383
	24,938	Pacific Biosciences of California, Inc.(b)		102,495
	10,395	PharMerica Corp.(b)		153,430
	4,807	Providence Service Corp. (The)(b)		143,681
	12,442	Repligen Corp.(b)		136,116
	23,069	Sinovac Biotech Ltd. (China)(b)		127,110
	25,980	Targacept, Inc.(b)		123,405
	7,500	Triple-S Management Corp., Class B (Puerto Rico)(b)		133,575
				4,439,820
		Industrials—17.4%
	8,830	Aceto Corp.		140,839
	11,640	Aegean Marine Petroleum Network, Inc. (Greece)		114,305
	18,535	Air Transport Services Group, Inc.(b)		134,193

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

45

PowerShares Zacks Micro Cap Portfolio (PZI) (continued)

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrials (continued)
	2,838	Alamo Group, Inc.	$	133,925
	4,007	American Woodmark Corp.(b)		135,917
	4,646	Apogee Enterprises, Inc.		145,327
	5,373	Arkansas Best Corp.		147,059
	28,215	Baltic Trading Ltd.		126,403
	2,050	Barrett Business Services, Inc.		170,704
	17,615	Broadwind Energy, Inc.(b)		128,590
	5,927	CAI International, Inc.(b)		129,742
	18,537	CBIZ, Inc.(b)		151,262
	6,576	Coleman Cable, Inc.		161,770
	5,739	Columbus McKinnon Corp.(b)		149,271
	8,204	Comfort Systems USA, Inc.		152,841
	2,460	Consolidated Graphics, Inc.(b)		157,661
	8,718	Courier Corp.		148,119
	21,761	Covenant Transport Group, Inc., Class A(b)		142,099
	7,406	CRA International, Inc.(b)		141,084
	4,811	Ducommun, Inc.(b)		119,601
	19,220	Eagle Bulk Shipping, Inc.(b)		106,863
	3,496	Encore Wire Corp.		173,157
	4,375	Engility Holdings, Inc.(b)		135,494
	7,695	Ennis, Inc.		136,586
	8,814	Erickson Air-Crane, Inc.(b)(c)		172,754
	6,669	FreightCar America, Inc.		148,319
	35,325	Genco Shipping & Trading Ltd.(b)(c)		94,318
	9,735	Gibraltar Industries, Inc.(b)		155,857
	26,632	Global Ship Lease, Inc., Class A (United Kingdom)(b)		133,426
	3,817	Graham Corp.		140,504
	10,997	Griffon Corp.		137,792
	8,985	Hardinge, Inc.		132,888
	18,539	Hawaiian Holdings, Inc.(b)(c)		152,947
	7,236	Heidrick & Struggles International, Inc.		134,011
	5,368	Hurco Cos., Inc.		131,462
	3,895	ICF International, Inc.(b)		134,845
	8,566	Insteel Industries, Inc.		142,110
	5,026	International Shipholding Corp.		124,745
	4,133	Kadant, Inc.		147,961
	7,083	Kelly Services, Inc., Class A		147,751
	16,660	Kratos Defense & Security Solutions, Inc.(b)		141,277
	27,701	Lihua International, Inc. (China)(b)		160,943
	12,619	Manitex International, Inc.(b)		163,164
	8,041	Marten Transport Ltd.		141,843
	4,065	Multi-Color Corp.		141,584
	8,927	Navigant Consulting, Inc.(b)		154,883
	19,382	Navios Maritime Holdings, Inc.		137,225
	8,865	NN, Inc.		142,549
	4,195	Northwest Pipe Co.(b)		151,146
	13,249	Orion Marine Group, Inc.(b)		165,613
	4,589	Patrick Industries, Inc.(b)		143,544
	12,183	Pike Electric Corp.		131,698
	2,250	Powell Industries, Inc.(b)		141,368
	8,594	PowerSecure International, Inc.(b)		155,380
	11,666	Republic Airways Holdings, Inc.(b)		137,425
	53,930	Revolution Lighting Technologies, Inc.(b)		161,251
	20,286	Safe Bulkers, Inc. (Greece)		151,334
	4,452	Saia, Inc.(b)		144,824

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrials (continued)
	9,561	SkyWest, Inc.	$	143,797
	5,644	SL Industries, Inc.		152,388
	5,412	Sparton Corp.(b)		142,823
	15,511	Tecumseh Products Co., Class A(b)		120,986
	6,469	Tutor Perini Corp.(b)		148,464
	37,119	Ultrapetrol Bahamas Ltd.(b)		133,628
	5,527	Viad Corp.		147,571
	27,930	Vitran Corp., Inc. (Canada)(b)		153,056
	2,938	VSE Corp.		128,684
	8,769	Willis Lease Finance Corp.(b)		152,844
	6,364	XPO Logistics, Inc.(b)(c)		128,426
				9,834,220
		Information Technology—14.2%
	7,873	Advanced Energy Industries, Inc.(b)		164,388
	6,782	Alliance Fiber Optic Products, Inc.		125,942
	16,507	Alpha & Omega Semiconductor Ltd.(b)		121,492
	18,901	Amtech Systems, Inc.(b)		151,208
	19,709	AudioCodes Ltd. (Israel)(b)		120,028
	65,388	Axcelis Technologies, Inc.(b)		141,892
	4,501	Black Box Corp.		112,705
	6,005	Blucora, Inc.(b)		141,898
	14,812	Brooks Automation, Inc.		142,788
	7,839	CalAmp Corp.(b)		184,452
	8,122	Canadian Solar, Inc. (Canada)(b)		186,806
	8,260	Checkpoint Systems, Inc.(b)		140,585
	7,670	ChipMOS TECHNOLOGIES Bermuda Ltd. (Taiwan)		122,490
	42,068	CIBER, Inc.(b)		136,721
	10,273	Clearfield, Inc.(b)		152,451
	12,640	Cohu, Inc.		120,838
	8,748	CTS Corp.		162,888
	19,563	DSP Group, Inc.(b)		145,744
	17,771	Emulex Corp.(b)		133,816
	2,686	ePlus, Inc.		146,011
	10,352	Exar Corp.(b)		119,359
	8,190	Fabrinet (Cayman Islands)(b)		137,101
	20,237	FormFactor, Inc.(b)		105,637
	28,274	Gilat Satellite Networks Ltd. (Israel)(b)		145,894
	19,622	GSI Technology, Inc.(b)		137,746
	9,225	Hollysys Automation Technologies Ltd. (China)(b)		154,703
	39,892	Hutchinson Technology, Inc.(b)		148,398
	10,457	Immersion Corp.(b)		133,013
	12,664	Integrated Silicon Solution, Inc.(b)		136,518
	15,672	IntraLinks Holdings, Inc.(b)		162,832
	30,921	Lattice Semiconductor Corp.(b)		158,625
	18,948	Marchex, Inc., Class B		169,016
	57,761	Mattson Technology, Inc.(b)		170,973
	13,896	Mercury Systems, Inc.(b)		128,121
	18,660	NeoPhotonics Corp.(b)		132,299
	13,841	Netsol Technologies, Inc.(b)		107,821
	52,859	Novatel Wireless, Inc.(b)		162,013
	7,377	Oplink Communications, Inc.(b)		134,630
	11,578	Orbotech Ltd. (Israel)(b)		138,010
	14,838	PCM, Inc.(b)		156,096
	7,513	Perficient, Inc.(b)		135,910

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

46

PowerShares Zacks Micro Cap Portfolio (PZI) (continued)

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	10,482	Perion Network Ltd. (Israel)(b)(c)	$	117,923
	17,619	Photronics, Inc.(b)		148,000
	11,389	Rubicon Technology, Inc.(b)(c)		97,945
	12,097	Rudolph Technologies, Inc.(b)		128,228
	12,031	SeaChange International, Inc.(b)		170,720
	8,426	Sierra Wireless, Inc. (Canada)(b)		152,174
	3,736	Silicom Ltd. (Israel)		165,953
	25,305	Support.com, Inc.(b)		112,860
	56,062	TeleCommunication Systems, Inc., Class A(b)		127,821
	4,093	Tessco Technologies, Inc.		145,015
	7,784	Uni-Pixel, Inc.(b)		128,047
	12,437	United Online, Inc.		151,609
	4,777	Virtusa Corp.(b)		148,469
	9,480	Vishay Precision Group, Inc.(b)		155,472
	41,173	Westell Technologies, Inc., Class A(b)		147,811
	12,395	Xyratex Ltd.		123,206
				8,051,111
		Materials—2.4%
	8,568	A.M. Castle & Co.(b)		122,608
	2,535	American Pacific Corp.(b)		115,393
	30,316	China Green Agriculture, Inc. (China)(b)		119,445
	11,069	Horsehead Holding Corp.(b)		160,611
	4,302	Materion Corp.		128,243
	4,965	Olympic Steel, Inc.		135,892
	25,307	Primero Mining Corp. (Canada)(b)		144,756
	38,415	Thompson Creek Metals Co., Inc.(b)(c)		123,312
	6,875	US Concrete, Inc.(b)		150,219
	8,271	Zoltek Cos., Inc.(b)		138,126
				1,338,605
		Telecommunication Services—1.3%
	5,185	Hawaiian Telcom Holdco, Inc.(b)		137,817
	20,043	Iridium Communications, Inc.(b)		120,859
	26,173	ORBCOMM, Inc.(b)		157,823
	9,739	USA Mobility, Inc.		145,306
	43,930	Vonage Holdings Corp.(b)		163,860
				725,665
		Utilities—0.2%
	9,213	Consolidated Water Co. Ltd. (Cayman Islands)		138,563
		Total Common Stocks and Other Equity Interests (Cost $51,047,230)		56,517,230
		Money Market Fund—0.2%
	101,588	Premier Portfolio—Institutional Class(d) (Cost $101,588)		101,588
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $51,148,818)—100.2%		56,618,818

Number of Shares			Value
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—2.8%
	1,588,750	Invesco Liquid Assets Portfolio—Institutional Class (Cost $1,588,750)(d)(e)	$	1,588,750
		Total Investments (Cost $52,737,568)—103.0%		58,207,568
		Other assets less liabilities—(3.0)%		(1,678,264	)
		Net Assets—100.0%	$	56,529,304

Investment Abbreviations:

REIT—Real Estate Investment Trust

Notes to Schedule of Investments:

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

^(b)  Non-income producing security.

^(c)  All or a portion of this security was out on loan at October 31, 2013.

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

^(e)  The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2G.

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

47

Statements of Assets and Liabilities

October 31, 2013

(Unaudited)

	PowerShares Dynamic Large Cap Growth Portfolio (PWB)			PowerShares Dynamic Large Cap Value Portfolio (PWV)			PowerShares Fundamental Pure Large Core Portfolio (PXLC)			PowerShares Fundamental Pure Large Growth Portfolio (PXLG)
Assets:
Unaffiliated investments, at value(a)	$	247,161,139		$	676,251,528		$	34,404,233		$	96,487,323
Affiliated investments, at value		150,394			—			41,047			27,643
Total investments, at value		247,311,533			676,251,528			34,445,280			96,514,966
Foreign currencies, at value		—			—			—			—
Receivables:
Dividends		71,193			847,806			45,603			72,773
Expenses absorbed		—			—			—			—
Investments sold		—			—			—			—
Security lending		—			—			—			—
Shares sold		—			1,344,624			—			—
Other assets		1,195			1,535			8,965			24,595
Total Assets		247,383,921			678,445,493			34,499,848			96,612,334
Liabilities:
Due to custodian		—			179,944			—			—
Payables:
Investments purchased		—			1,342,338			—			—
Collateral upon return of securities loaned		—			—			—			—
Accrued advisory fees		102,390			281,706			2,391			18,216
Accrued trustees fees		25,518			29,891			11,266			6,473
Accrued expenses		114,975			265,680			74,999			97,378
Total Liabilities		242,883			2,099,559			88,656			122,067
Net Assets	$	247,141,038		$	676,345,934		$	34,411,192		$	96,490,267
Net Assets Consist of:
Shares of beneficial interest	$	435,071,658		$	674,344,516		$	38,860,609		$	85,484,002
Undistributed net investment income (loss)		(31,452	)		1,128,194			37,540			(124,931	)
Undistributed net realized gain (loss)		(236,951,225	)		(94,199,039	)		(10,805,492	)		601,893
Net unrealized appreciation		49,052,057			95,072,263			6,318,535			10,529,303
Net Assets	$	247,141,038		$	676,345,934		$	34,411,192		$	96,490,267
Shares outstanding (unlimited amount authorized, $0.01 par value)		10,100,000			25,150,000			1,000,000			3,550,001
Net asset value	$	24.47		$	26.89		$	34.41		$	27.18
Market price	$	24.52		$	26.93		$	34.44		$	27.27
Unaffiliated investments, at cost	$	198,109,082		$	581,179,265		$	28,085,698		$	85,958,020
Affiliated investments, at cost	$	150,394		$	—		$	41,047		$	27,643
Total investments, at cost	$	198,259,476		$	581,179,265		$	28,126,745		$	85,985,663
Foreign currencies, at cost	$	—		$	—		$	—		$	—
(a) Includes securities on loan with an aggregate value of	$	—		$	—		$	—		$	—

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

48

PowerShares Fundamental Pure Large Value Portfolio (PXLV)		PowerShares Fundamental Pure Mid Core Portfolio (PXMC)			PowerShares Fundamental Pure Mid Growth Portfolio (PXMG)			PowerShares Fundamental Pure Mid Value Portfolio (PXMV)			PowerShares Fundamental Pure Small Core Portfolio (PXSC)			PowerShares Fundamental Pure Small Growth Portfolio (PXSG)			PowerShares Fundamental Pure Small Value Portfolio (PXSV)			PowerShares Zacks Micro Cap Portfolio (PZI)
$	12,240,693	$	25,103,182		$	87,376,576		$	37,703,523		$	15,725,842		$	28,071,923		$	57,048,175		$	56,517,230
	—		391,346			145,237			—			71,200			228,962			2,080,882			1,690,338
	12,240,693		25,494,528			87,521,813			37,703,523			15,797,042			28,300,885			59,129,057			58,207,568
	—		—			—			147,656			—			—			—			—
	21,858		19,128			34,735			16,539			6,880			9,728			23,339			21,773
	3,806		269			—			—			3,350			—			—			—
	74,743					—			—			—			—			415,317			124,130
	—		—			—			—			—			—			1,467			14,346
	—		—			—			—			—			—			—			—
	8,629		20,418			9,784			4,060			812			26,750			5,869			1,535
	12,349,729		25,534,343			87,566,332			37,871,778			15,808,084			28,337,363			59,575,049			58,369,352
	40,418		—			—			65,210			—			—			—			—
	—		—			—			—			—			—			401,501			122,392
	—		—			—			—			—			—			1,980,117			1,588,750
	—		—			18,228			2,585			—			129			7,228			19,415
	5,634		10,786			18,099			12,103			10,483			11,733			13,185			12,965
	62,996		82,722			99,440			76,720			67,055			100,182			99,471			96,526
	109,048		93,508			135,767			156,618			77,538			112,044			2,501,502			1,840,048
$	12,240,681	$	25,440,835		$	87,430,565		$	37,715,160		$	15,730,546		$	28,225,319		$	57,073,547		$	56,529,304
$	10,742,963	$	31,616,424		$	243,491,603		$	75,427,902		$	22,338,633		$	73,915,718		$	90,948,241		$	139,295,094
	35,103		24,975			135,442			37,379			16,746			18,116			55,162			53,384
	8,381		(10,328,088	)		(170,821,104	)		(45,209,720	)		(9,377,719	)		(50,300,268	)		(45,927,260	)		(88,289,174	)
	1,454,234		4,127,524			14,624,624			7,459,599			2,752,886			4,591,753			11,997,404			5,470,000
$	12,240,681	$	25,440,835		$	87,430,565		$	37,715,160		$	15,730,546		$	28,225,319		$	57,073,547		$	56,529,304
	450,001		750,000			3,100,000			1,600,000			500,000			1,250,000			2,450,000			3,600,000
$	27.20	$	33.92		$	28.20		$	23.57		$	31.46		$	22.58		$	23.30		$	15.70
$	27.24	$	34.00		$	28.19		$	23.58		$	31.48		$	22.61		$	23.33		$	15.72
$	10,786,459	$	21,015,652		$	72,751,952		$	30,254,665		$	12,972,956		$	23,439,260		$	45,050,771		$	51,047,230
$	—	$	351,352		$	145,237		$	—		$	71,200		$	269,872		$	2,080,882		$	1,690,338
$	10,786,459	$	21,367,004		$	72,897,189		$	30,254,665		$	13,044,156		$	23,709,132		$	47,131,653		$	52,737,568
$	—	$	—		$	—		$	136,915		$	—		$	—		$	—		$	—
$	—	$	—		$	—		$	—		$	—		$	—		$	1,904,739		$	1,463,465

49

Statements of Operations

For the six months ended October 31, 2013

(Unaudited)

	PowerShares Dynamic Large Cap Growth Portfolio (PWB)			PowerShares Dynamic Large Cap Value Portfolio (PWV)			PowerShares Fundamental Pure Large Core Portfolio (PXLC)			PowerShares Fundamental Pure Large Growth Portfolio (PXLG)
Investment Income:
Unaffiliated dividend income	$	1,105,080		$	8,326,563		$	342,635		$	1,047,174
Affiliated dividend income		8			19			4			2
Securities lending income		—			—			—			—
Foreign withholding tax		—			—			—			(1,079	)
Total Income		1,105,088			8,326,582			342,639			1,046,097
Expenses:
Advisory fees		575,457			1,582,831			44,754			128,537
Sub-licensing		34,528			94,970			7,908			27,839
Accounting & administration fees		22,355			59,078			18,046			18,046
Professional fees		16,210			20,367			14,368			13,842
Trustees fees		7,050			12,208			4,345			5,004
Custodian & transfer agent fees		3,912			9,333			3,308			2,489
Listing fee and expenses		3,767			3,769			3,763			3,757
Other expenses		10,600			29,332			2,277			4,401
Total Expenses		673,879			1,811,888			98,769			203,915
Waivers		(42	)		(116	)		(39,069	)		(31,065	)
Net Expenses		673,837			1,811,772			59,700			172,850
Net Investment Income		431,251			6,514,810			282,939			873,247
Realized and Unrealized Gain (Loss):
Net realized gain (loss) from:
Investment securities		1,526,193			(6,202,287	)		27,435			(70,347	)
In-kind redemptions		22,566,553			48,711,467			—			372,843
Foreign currencies		—			—			—			—
Net realized gain		24,092,746			42,509,180			27,435			302,496
Change in net unrealized appreciation (depreciation) on:
Investment securities		8,211,624			(1,877,151	)		3,170,245			7,214,048
Foreign currencies		—			—			—			—
Net change in unrealized appreciation (depreciation)		8,211,624			(1,877,151	)		3,170,245			7,214,048
Net realized and unrealized gain		32,304,370			40,632,029			3,197,680			7,516,544
Net increase in net assets resulting from operations	$	32,735,621		$	47,146,839		$	3,480,619		$	8,389,791

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

50

PowerShares Fundamental Pure Large Value Portfolio (PXLV)			PowerShares Fundamental Pure Mid Core Portfolio (PXMC)			PowerShares Fundamental Pure Mid Growth Portfolio (PXMG)			PowerShares Fundamental Pure Mid Value Portfolio (PXMV)			PowerShares Fundamental Pure Small Core Portfolio (PXSC)			PowerShares Fundamental Pure Small Growth Portfolio (PXSG)			PowerShares Fundamental Pure Small Value Portfolio (PXSV)			PowerShares Zacks MicroCap Portfolio (PZI)
$	148,536		$	197,282		$	715,185		$	319,896		$	105,076		$	138,894		$	437,511		$	319,793
	3			3,863			6			—			4			9,597			4			4
	—			—			—			—			—			—			12,765			51,120
	—			(167	)		—			—			(395	)		—			—			(259	)
	148,539			200,978			715,191			319,896			104,685			148,491			450,280			370,658
	15,819			33,705			122,218			48,867			21,713			39,076			77,211			125,026
	2,824			6,064			22,365			8,441			3,996			6,952			13,891			25,005
	18,046			18,046			18,046			18,046			18,046			18,046			18,046			18,046
	13,632			14,191			15,397			14,158			14,443			14,699			15,510			16,638
	3,916			4,277			5,138			4,392			4,164			4,261			4,654			4,552
	2,685			3,482			5,053			7,626			6,835			8,866			11,791			6,993
	3,757			3,767			3,763			3,763			3,763			3,763			3,763			3,769
	754			1,691			6,893			2,770			1,325			2,674			4,939			4,435
	61,433			85,223			198,873			108,063			74,285			98,337			149,805			204,464
	(40,171	)		(40,446	)		(35,163	)		(42,923	)		(45,613	)		(46,429	)		(46,611	)		(29,454	)
	21,262			44,777			163,710			65,140			28,672			51,908			103,194			175,010
	127,277			156,201			551,481			254,756			76,013			96,583			347,086			195,648
	14,748			233,110			802,803			135,816			42,757			132,794			314,385			(356,330	)
	—			—			267,771			—			435,155			337,395			—			5,234,226
	—			—			—			—			—			—			—			(1,711	)
	14,748			233,110			1,070,574			135,816			477,912			470,189			314,385			4,876,185
	737,131			2,467,184			5,823,910			3,817,175			1,453,483			3,334,105			8,679,582			2,158,035
	—			—			—			4,464			—			—			—			1,000
	737,131			2,467,184			5,823,910			3,821,639			1,453,483			3,334,105			8,679,582			2,159,035
	751,879			2,700,294			6,894,484			3,957,455			1,931,395			3,804,294			8,993,967			7,035,220
$	879,156		$	2,856,495		$	7,445,965		$	4,212,211		$	2,007,408		$	3,900,877		$	9,341,053		$	7,230,868

51

Statements of Changes in Net Assets

For the six months ended October 31, 2013 and the year ended April 30, 2013

(Unaudited)

	PowerShares Dynamic Large Cap Growth Portfolio (PWB)						PowerShares Dynamic Large Cap Value Portfolio (PWV)
	October 31, 2013			April 30, 2013			October 31, 2013			April 30, 2013
Operations:
Net investment income	$	431,251		$	2,024,457		$	6,514,810		$	10,894,233
Net realized gain		24,092,746			21,861,235			42,509,180			37,231,755
Net change in unrealized appreciation (depreciation)		8,211,624			2,739,360			(1,877,151	)		57,544,945
Net increase in net assets resulting from operations		32,735,621			26,625,052			47,146,839			105,670,933
Distributions to Shareholders from:
Net investment income		(697,203	)		(1,990,554	)		(6,755,344	)		(10,900,743	)
Shareholder Transactions:
Proceeds from shares sold		121,516,554			166,875,738			364,946,670			450,245,291
Value of shares repurchased		(119,310,849	)		(169,626,504	)		(303,817,463	)		(389,930,643	)
Net increase (decrease) in net assets resulting from shares transactions		2,205,705			(2,750,766	)		61,129,207			60,314,648
Increase (Decrease) in Net Assets		34,244,123			21,883,732			101,520,702			155,084,838
Net Assets:
Beginning of period		212,896,915			191,013,183			574,825,232			419,740,394
End of period	$	247,141,038		$	212,896,915		$	676,345,934		$	574,825,232
Undistributed net investment income (loss) at end of period	$	(31,452	)	$	234,500		$	1,128,194		$	1,368,728
Changes in Shares Outstanding:
Shares sold		5,500,000			8,950,000			14,150,000			20,750,000
Shares repurchased		(5,400,000	)		(9,150,000	)		(11,800,000	)		(18,200,000	)
Shares outstanding, beginning of period		10,000,000			10,200,000			22,800,000			20,250,000
Shares outstanding, end of period		10,100,000			10,000,000			25,150,000			22,800,000

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

52

PowerShares Fundamental Pure Large Core Portfolio (PXLC)						PowerShares Fundamental Pure Large Growth Portfolio (PXLG)						PowerShares Fundamental Pure Large Value Portfolio (PXLV)						PowerShares Fundamental Pure Mid Core Portfolio (PXMC)
October 31, 2013			April 30, 2013			October 31, 2013			April 30, 2013			October 31, 2013			April 30, 2013			October 31, 2013			April 30, 2013
$	282,939		$	608,250		$	873,247		$	384,170		$	127,277		$	141,166		$	156,201		$	283,696
	27,435			2,361,514			302,496			1,834,815			14,748			882,558			233,110			941,088
	3,170,245			1,527,836			7,214,048			3,127,962			737,131			211,524			2,467,184			1,551,100
	3,480,619			4,497,600			8,389,791			5,346,947			879,156			1,235,248			2,856,495			2,775,884
	(260,434	)		(662,935	)		(1,231,979	)		(166,518	)		(103,675	)		(147,580	)		(168,268	)		(280,344	)
	3,317,466			10,362,143			9,102,207			97,586,544			3,916,290			2,477,129			2,984,287			2,985,502
	—			(11,649,294	)		(2,586,163	)		(24,390,578	)		—			(4,164,302	)		—			(4,335,466	)
	3,317,466			(1,287,151	)		6,516,044			73,195,966			3,916,290			(1,687,173	)		2,984,287			(1,349,964	)
	6,537,651			2,547,514			13,673,856			78,376,395			4,691,771			(599,505	)		5,672,514			1,145,576
	27,873,541			25,326,027			82,816,411			4,440,016			7,548,910			8,148,415			19,768,321			18,622,745
$	34,411,192		$	27,873,541		$	96,490,267		$	82,816,411		$	12,240,681		$	7,548,910		$	25,440,835		$	19,768,321
$	37,540		$	15,035		$	(124,931	)	$	233,801		$	35,103		$	11,501		$	24,975		$	37,042
	100,000			350,000			350,000			4,100,000			150,000			100,000			100,000			100,000
	—			(400,000	)		(100,000	)		(1,000,000	)		—			(200,000	)		—			(150,000	)
	900,000			950,000			3,300,001			200,001			300,001			400,001			650,000			700,000
	1,000,000			900,000			3,550,001			3,300,001			450,001			300,001			750,000			650,000

53

Statements of Changes in Net Assets (continued)

For the six months ended October 31, 2013 and the year ended April 30, 2013

(Unaudited)

	PowerShares Fundamental Pure Mid Growth Portfolio (PXMG)						PowerShares Fundamental Pure Mid Value Portfolio (PXMV)
	October 31, 2013			April 30, 2013			October 31, 2013			April 30, 2013
Operations:
Net investment income	$	551,481		$	904,339		$	254,756		$	607,661
Net realized gain		1,070,574			3,643,371			135,816			2,891,074
Net change in unrealized appreciation		5,823,910			7,042,985			3,821,639			2,887,178
Net increase in net assets resulting from operations		7,445,965			11,590,695			4,212,211			6,385,913
Distributions to Shareholders from:
Net investment income		(762,441	)		(795,069	)		(254,386	)		(648,717	)
Shareholder Transactions:
Proceeds from shares sold		—			16,376,600			5,436,645			4,102,250
Value of shares repurchased		(1,354,062	)		(32,274,525	)		—			(13,926,465	)
Net increase (decrease) in net assets resulting from shares transactions		(1,354,062	)		(15,897,925	)		5,436,645			(9,824,215	)
Increase (Decrease) in Net Assets		5,329,462			(5,102,299	)		9,394,470			(4,087,019	)
Net Assets:
Beginning of period		82,101,103			87,203,402			28,320,690			32,407,709
End of period	$	87,430,565		$	82,101,103		$	37,715,160		$	28,320,690
Undistributed net investment income (loss) at end of period	$	135,442		$	346,402		$	37,379		$	37,009
Changes in Shares Outstanding:
Shares sold		—			650,000			250,000			200,000
Shares repurchased		(50,000	)		(1,350,000	)		—			(750,000	)
Shares outstanding, beginning of period		3,150,000			3,850,000			1,350,000			1,900,000
Shares outstanding, end of period		3,100,000			3,150,000			1,600,000			1,350,000

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

54

PowerShares Fundamental Pure Small Core Portfolio (PXSC)						PowerShares Fundamental Pure Small Growth Portfolio (PXSG)						PowerShares Fundamental Pure Small Value Portfolio (PXSV)						PowerShares Zacks Micro Cap Portfolio (PZI)
October 31, 2013			April 30, 2013			October 31, 2013			April 30, 2013			October 31, 2013			April 30, 2013			October 31, 2013			April 30, 2013
$	76,013		$	259,345		$	96,583		$	196,216		$	347,086		$	873,607		$	195,648		$	531,305
	477,912			810,582			470,189			1,224,815			314,385			5,434,528			4,876,185			4,356,483
	1,453,483			1,020,540			3,334,105			1,497,396			8,679,582			2,795,165			2,159,035			1,125,876
	2,007,408			2,090,467			3,900,877			2,918,427			9,341,053			9,103,300			7,230,868			6,013,664
	(112,734	)		(259,833	)		(268,387	)		(218,960	)		(351,551	)		(957,949	)		(270,832	)		(557,741	)
	1,417,190			2,734,348			—			4,953,667			—			9,762,249			26,306,850			34,331,596
	(2,870,954	)		(5,010,393	)		(2,053,259	)		(11,919,697	)		—			(22,135,140	)		(18,792,386	)		(31,751,422	)
	(1,453,764	)		(2,276,045	)		(2,053,259	)		(6,966,030	)		—			(12,372,891	)		7,514,464			2,580,174
	440,910			(445,411	)		1,579,231			(4,266,563	)		8,989,502			(4,227,540	)		14,474,500			8,036,097
	15,289,636			15,735,047			26,646,088			30,912,651			48,084,045			52,311,585			42,054,804			34,018,707
$	15,730,546		$	15,289,636		$	28,225,319		$	26,646,088		$	57,073,547		$	48,084,045		$	56,529,304		$	42,054,804
$	16,746		$	53,467		$	18,116		$	189,920		$	55,162		$	59,627		$	53,384		$	128,568
	50,000			100,000			—			250,000			—			500,000			1,750,000			2,700,000
	(100,000	)		(200,000	)		(100,000	)		(650,000	)		—			(1,250,000	)		(1,250,000	)		(2,600,000	)
	550,000			650,000			1,350,000			1,750,000			2,450,000			3,200,000			3,100,000			3,000,000
	500,000			550,000			1,250,000			1,350,000			2,450,000			2,450,000			3,600,000			3,100,000

55

Financial Highlights

PowerShares Dynamic Large Cap Growth Portfolio (PWB)

	Six-Months Ended October 31, 2013 (Unaudited)			Year Ended April 30,
				2013			2012			2011			2010			2009
Per Share Operating Performance:
Net asset value at beginning of period	$	21.29		$	18.73		$	17.63		$	14.91		$	11.03		$	17.33
Net investment income(a)		0.04			0.21			0.15			0.11			0.06			0.08
Net realized and unrealized gain (loss) on investments		3.21			2.55			1.09			2.72			3.91			(6.30	)
Total from investment operations		3.25			2.76			1.24			2.83			3.97			(6.22	)
Distributions to shareholders from:
Net investment income		(0.07	)		(0.20	)		(0.14	)		(0.11	)		(0.09	)		(0.08	)
Net asset value at end of period	$	24.47		$	21.29		$	18.73		$	17.63		$	14.91		$	11.03
Market price at end of period(b)	$	24.52		$	21.28		$	18.72		$	17.63		$	14.91		$	11.03
Net Asset Value Total Return(c)		15.30	%		14.91	%		7.18	%		19.08	%		36.15	%		(35.93	)%
Market Price Total Return(c)		15.59	%		14.92	%		7.12	%		19.08	%		36.15	%		(35.93	)%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	247,141		$	212,897		$	191,013		$	196,574		$	230,334		$	281,172
Ratio to average net assets of:
Expenses, after Waivers		0.59	%(d)		0.59	%		0.61	%		0.63	%		0.61	%		0.61	%
Expenses, prior to Waivers		0.59	%(d)		0.59	%		0.62	%		0.64	%		0.61	%		0.60	%
Net investment income, after Waivers		0.37	%(d)		1.08	%		0.89	%		0.73	%		0.45	%		0.60	%
Portfolio turnover rate(e)		54	%		47	%		64	%		45	%		67	%		88	%

PowerShares Dynamic Large Cap Value Portfolio (PWV)

	Six-Months Ended October 31, 2013 (Unaudited)			Year Ended April 30,
				2013			2012			2011			2010			2009
Per Share Operating Performance:
Net asset value at beginning of period	$	25.21		$	20.73		$	20.35		$	18.05		$	13.54		$	19.27
Net investment income(a)		0.27			0.52			0.46			0.40			0.39			0.41
Net realized and unrealized gain (loss) on investments		1.69			4.48			0.38			2.33			4.52			(5.81	)
Total from investment operations		1.96			5.00			0.84			2.73			4.91			(5.40	)
Distributions to shareholders from:
Net investment income		(0.28	)		(0.52	)		(0.46	)		(0.43	)		(0.40	)		(0.33	)
Net asset value at end of period	$	26.89		$	25.21		$	20.73		$	20.35		$	18.05		$	13.54
Market price at end of period(b)	$	26.93		$	25.22		$	20.71		$	20.36		$	18.05		$	13.55
Net Asset Value Total Return(c)		7.85	%		24.55	%		4.34	%		15.50	%		36.69	%		(28.30	)%
Market Price Total Return(c)		7.96	%		24.72	%		4.20	%		15.49	%		36.67	%		(28.21	)%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	676,346		$	574,825		$	419,740		$	422,319		$	349,265		$	262,699
Ratio to average net assets of:
Expenses, after Waivers		0.57	%(d)		0.59	%		0.59	%		0.61	%		0.63	%		0.63	%
Expenses, prior to Waivers		0.57	%(d)		0.59	%		0.59	%		0.61	%		0.60	%		0.61	%
Net investment income, after Waivers		2.06	%(d)		2.36	%		2.39	%		2.22	%		2.46	%		2.71	%
Portfolio turnover rate(e)		54	%		58	%		41	%		40	%		47	%		77	%

^(a)  Based on average shares outstanding.

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

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

^(d)  Annualized.

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

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

56

Financial Highlights (continued)

PowerShares Fundamental Pure Large Core Portfolio (PXLC)

	Six-Months Ended October 31, 2013 (Unaudited)			Year Ended April 30,
				2013			2012			2011			2010			2009
Per Share Operating Performance:
Net asset value at beginning of period	$	30.97		$	26.66		$	26.42		$	23.26		$	17.56		$	25.92
Net investment income(a)		0.30			0.65			0.57			0.37			0.27			0.34
Net realized and unrealized gain (loss) on investments		3.42			4.35			0.32			3.16			5.74			(8.44	)
Total from investment operations		3.72			5.00			0.89			3.53			6.01			(8.10	)
Distributions to shareholders from:
Net investment income		(0.28	)		(0.69	)		(0.65	)		(0.37	)		(0.31	)		(0.26	)
Net asset value at end of period	$	34.41		$	30.97		$	26.66		$	26.42		$	23.26		$	17.56
Market price at end of period(b)	$	34.44		$	30.98		$	26.66		$	26.42		$	23.26		$	17.55
Net Asset Value Total Return(c)		12.07	%		19.10	%		3.64	%		15.40	%		34.56	%		(31.47	)%
Market Price Total Return(c)		12.13	%		19.15	%		3.64	%		15.40	%		34.64	%		(31.48	)%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	34,411		$	27,874		$	25,326		$	35,673		$	38,376		$	33,355
Ratio to average net assets of:
Expenses, after Waivers		0.39	%(d)		0.39	%		0.43	%		0.65	%		0.65	%		0.65	%
Expenses, prior to Waivers		0.64	%(d)		0.80	%		0.90	%		0.99	%		0.88	%		0.93	%
Net investment income, after Waivers		1.83	%(d)		2.38	%		2.32	%		1.61	%		1.32	%		1.71	%
Portfolio turnover rate(e)		1	%		43	%		58	%		41	%		62	%		57	%

PowerShares Fundamental Pure Large Growth Portfolio (PXLG)

	Six-Months Ended October 31, 2013 (Unaudited)			Year Ended April 30, 2013			For the Period June 13, 2011(f) Through April 30, 2012
Per Share Operating Performance:
Net asset value at beginning of period	$	25.10		$	22.20		$	20.00
Net investment income(a)		0.26			0.39			0.28
Net realized and unrealized gain on investments		2.19			2.87			2.09
Total from investment operations		2.45			3.26			2.37
Distributions to shareholders from:
Net investment income		(0.37	)		(0.36	)		(0.17	)
Net asset value at end of period	$	27.18		$	25.10		$	22.20
Market price at end of period(b)	$	27.27		$	25.08		$	22.19
Net Asset Value Total Return(c)		9.91	%		14.87	%		11.99	%(g)
Market Price Total Return(c)		10.36	%		14.83	%		11.94	%(g)
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	96,490		$	82,816		$	4,440
Ratio to average net assets of:
Expenses, after Waivers		0.39	%(d)		0.39	%		0.39	%(d)
Expenses, prior to Waivers		0.46	%(d)		0.79	%		7.69	%(d)
Net investment income, after Waivers		1.97	%(d)		1.63	%		1.54	%(d)
Portfolio turnover rate(e)		1	%		90	%		3	%

^(a)  Based on average shares outstanding.

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

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

^(d)  Annualized.

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

^(f)  Commencement of Investment Operations.

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

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

57

Financial Highlights (continued)

PowerShares Fundamental Pure Large Value Portfolio (PXLV)

	Six-Months Ended October 31, 2013 (Unaudited)			Year Ended April 30, 2013			For the Period June 13, 2011(a) Through April 30, 2012
Per Share Operating Performance:
Net asset value at beginning of period	$	25.16		$	20.37		$	20.00
Net investment income(b)		0.31			0.52			0.39
Net realized and unrealized gain on investments		1.97			4.77			0.33
Total from investment operations		2.28			5.29			0.72
Distributions to shareholders from:
Net investment income		(0.24	)		(0.50	)		(0.35	)
Net asset value at end of period	$	27.20		$	25.16		$	20.37
Market price at end of period(c)	$	27.24		$	25.16		$	20.35
Net Asset Value Total Return(d)		9.13	%		26.41	%		3.80	%(e)
Market Price Total Return(d)		9.29	%		26.53	%		3.70	%(e)
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	12,241		$	7,549		$	8,148
Ratio to average net assets of:
Expenses, after Waivers		0.39	%(f)		0.39	%		0.39	%(f)
Expenses, prior to Waivers		1.13	%(f)		2.10	%		2.87	%(f)
Net investment income, after Waivers		2.33	%(f)		2.43	%		2.38	%(f)
Portfolio turnover rate(g)		3	%		9	%		2	%

PowerShares Fundamental Pure Mid Core Portfolio (PXMC)

	Six-Months Ended October 31, 2013 (Unaudited)			Year Ended April 30,
				2013			2012			2011			2010			2009
Per Share Operating Performance:
Net asset value at beginning of period	$	30.41		$	26.60		$	27.15		$	23.05		$	16.30		$	25.47
Net investment income(b)		0.22			0.43			0.29			0.21			0.18			0.13
Net realized and unrealized gain (loss) on investments		3.53			3.80			(0.57	)		4.10			6.73			(9.17	)
Total from investment operations		3.75			4.23			(0.28	)		4.31			6.91			(9.04	)
Distributions to shareholders from:
Net investment income		(0.24	)		(0.42	)		(0.27	)		(0.21	)		(0.16	)		(0.13	)
Net asset value at end of period	$	33.92		$	30.41		$	26.60		$	27.15		$	23.05		$	16.30
Market price at end of period(c)	$	34.00		$	30.39		$	26.62		$	27.15		$	23.04		$	16.29
Net Asset Value Total Return(d)		12.38	%		16.16	%		(0.93	)%		18.84	%		42.59	%		(35.57	)%
Market Price Total Return(d)		12.72	%		16.00	%		(0.85	)%		18.89	%		42.62	%		(35.63	)%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	25,441		$	19,768		$	18,623		$	23,081		$	25,353		$	17,929
Ratio to average net assets of:
Expenses, after Waivers		0.39	%(f)		0.39	%		0.43	%		0.65	%		0.65	%		0.65	%
Expenses, prior to Waivers		0.73	%(f)		1.00	%		1.01	%		1.20	%		1.11	%		1.17	%
Net investment income, after Waivers		1.34	%(f)		1.58	%		1.16	%		0.88	%		0.92	%		0.67	%
Portfolio turnover rate(g)		4	%		38	%		83	%		47	%		76	%		79	%

^(a)  Commencement of Investment Operations.

^(b)  Based on average shares outstanding.

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

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

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

^(f)  Annualized.

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

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

58

Financial Highlights (continued)

PowerShares Fundamental Pure Mid Growth Portfolio (PXMG)

	Six-Months Ended October 31, 2013 (Unaudited)			Year Ended April 30,
				2013			2012			2011			2010			2009
Per Share Operating Performance:
Net asset value at beginning of period	$	26.06		$	22.65		$	24.13		$	19.11		$	13.87		$	22.29
Net investment income (loss)(a)		0.18			0.26			0.13			(0.01	)		0.00	(b)		(0.01	)
Net realized and unrealized gain (loss) on investments		2.20			3.38			(1.53	)		5.09			5.25			(8.41	)
Total from investment operations		2.38			3.64			(1.40	)		5.08			5.25			(8.42	)
Distributions to shareholders from:
Net investment income		(0.24	)		(0.23	)		(0.08	)		—			(0.00	)(b)		—
Return of capital		—			—			—			(0.06	)		(0.01	)		—
Total distributions		(0.24	)		(0.23	)		(0.08	)		(0.06	)		(0.01	)		—
Net asset value at end of period	$	28.20		$	26.06		$	22.65		$	24.13		$	19.11		$	13.87
Market price at end of period(c)	$	28.19		$	26.04		$	22.63		$	24.13		$	19.10		$	13.85
Net Asset Value Total Return(d)		9.21	%		16.23	%		(5.74	)%		26.61	%		37.89	%		(37.78	)%
Market Price Total Return(d)		9.25	%		16.25	%		(5.83	)%		26.67	%		38.02	%		(37.86	)%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	87,431		$	82,101		$	87,203		$	130,290		$	128,044		$	140,038
Ratio to average net assets of:
Expenses, after Waivers		0.39	%(e)		0.39	%		0.43	%		0.63	%		0.63	%		0.63	%
Expenses, prior to Waivers		0.47	%(e)		0.54	%		0.55	%		0.69	%		0.66	%		0.61	%
Net investment income (loss), after Waivers		1.31	%(e)		1.14	%		0.61	%		(0.06	)%		0.03	%		(0.07	)%
Portfolio turnover rate(f)		3	%		33	%		75	%		49	%		75	%		81	%

PowerShares Fundamental Pure Mid Value Portfolio (PXMV)

	Six-Months Ended October 31, 2013 (Unaudited)			Year Ended April 30,
				2013			2012			2011			2010			2009
Per Share Operating Performance:
Net asset value at beginning of period	$	20.98		$	17.06		$	17.07		$	15.37		$	11.16		$	16.89
Net investment income(a)		0.17			0.37			0.25			0.15			0.23			0.26
Net realized and unrealized gain (loss) on investments		2.59			3.94			(0.03	)		1.70			4.24			(5.75	)
Total from investment operations		2.76			4.31			0.22			1.85			4.47			(5.49	)
Distributions to shareholders from:
Net investment income		(0.17	)		(0.39	)		(0.23	)		(0.15	)		(0.26	)		(0.24	)
Net asset value at end of period	$	23.57		$	20.98		$	17.06		$	17.07		$	15.37		$	11.16
Market price at end of period(c)	$	23.58		$	20.98		$	17.04		$	17.07		$	15.36		$	11.13
Net Asset Value Total Return(d)		13.25	%		25.74	%		1.42	%		12.16	%		40.58	%		(32.71	)%
Market Price Total Return(d)		13.29	%		25.89	%		1.30	%		12.24	%		40.88	%		(32.89	)%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	37,715		$	28,321		$	32,408		$	40,970		$	43,818		$	39,056
Ratio to average net assets of:
Expenses, after Waivers		0.39	%(e)		0.39	%		0.43	%		0.63	%		0.63	%		0.63	%
Expenses, prior to Waivers		0.64	%(e)		0.82	%		0.79	%		0.91	%		0.84	%		0.78	%
Net investment income, after Waivers		1.51	%(e)		2.08	%		1.57	%		0.99	%		1.76	%		1.95	%
Portfolio turnover rate(f)		2	%		25	%		83	%		65	%		86	%		94	%

^(a)  Based on average shares outstanding.

^(b)  Amount represents less than $0.005.

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

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

^(e)  Annualized.

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

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

59

Financial Highlights (continued)

PowerShares Fundamental Pure Small Core Portfolio (PXSC)

	Six-Months Ended October 31, 2013 (Unaudited)			Year Ended April 30,
				2013			2012			2011			2010			2009
Per Share Operating Performance:
Net asset value at beginning of period	$	27.80		$	24.21		$	25.32		$	21.07		$	15.03		$	23.31
Net investment income(a)		0.15			0.46			0.22			0.09			0.11			0.08
Net realized and unrealized gain (loss) on investments		3.75			3.60			(1.18	)		4.25			6.08			(8.31	)
Total from investment operations		3.90			4.06			(0.96	)		4.34			6.19			(8.23	)
Distributions to shareholders from:
Net investment income		(0.24	)		(0.47	)		(0.15	)		(0.09	)		(0.14	)		(0.05	)
Return of capital		—			—			—			—			(0.01	)		—
Total distributions		(0.24	)		(0.47	)		(0.15	)		(0.09	)		(0.15	)		(0.05	)
Net asset value at end of period	$	31.46		$	27.80		$	24.21		$	25.32		$	21.07		$	15.03
Market price at end of period(b)	$	31.48		$	27.76		$	24.18		$	25.33		$	21.05		$	15.00
Net Asset Value Total Return(c)		14.14	%		17.05	%		(3.70	)%		20.64	%		41.37	%		(35.34	)%
Market Price Total Return(c)		14.38	%		17.03	%		(3.85	)%		20.80	%		41.52	%		(35.41	)%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	15,731		$	15,290		$	15,735		$	18,991		$	18,960		$	13,530
Ratio to average net assets of:
Expenses, after Waivers		0.38	%(d)		0.39	%		0.43	%		0.65	%		0.65	%		0.65	%
Expenses, prior to Waivers		0.99	%(d)		1.22	%		1.25	%		1.41	%		1.26	%		1.35	%
Net investment income, after Waivers		1.02	%(d)		1.88	%		0.97	%		0.42	%		0.59	%		0.47	%
Portfolio turnover rate(e)		3	%		45	%		97	%		68	%		93	%		81	%

PowerShares Fundamental Pure Small Growth Portfolio (PXSG)

	Six-Months Ended October 31, 2013 (Unaudited)			Year Ended April 30,
				2013			2012			2011			2010			2009
Per Share Operating Performance:
Net asset value at beginning of period	$	19.74		$	17.66		$	19.03		$	14.12		$	10.49		$	15.71
Net investment income (loss)(a)		0.08			0.13			0.07			(0.05	)		0.05			0.01
Net realized and unrealized gain (loss) on investments		2.97			2.08			(1.44	)		4.96			3.67			(5.23	)
Total from investment operations		3.05			2.21			(1.37	)		4.91			3.72			(5.22	)
Distributions to shareholders from:
Net investment income		(0.21	)		(0.13	)		—			—			(0.07	)		—
Return of capital		—			—			—			—			(0.02	)		—
Total distributions		(0.21	)		(0.13	)		—			—			(0.09	)		—
Net asset value at end of period	$	22.58		$	19.74		$	17.66		$	19.03		$	14.12		$	10.49
Market price at end of period(b)	$	22.61		$	19.72		$	17.64		$	19.05		$	14.10		$	10.48
Net Asset Value Total Return(c)		15.55	%		12.63	%		(7.20	)%		34.77	%		35.60	%		(33.23	)%
Market Price Total Return(c)		15.82	%		12.65	%		(7.40	)%		35.11	%		35.54	%		(33.25	)%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	28,225		$	26,646		$	30,913		$	109,451		$	32,473		$	31,484
Ratio to average net assets of:
Expenses, after Waivers(f)		0.39	%(d)		0.39	%		0.48	%		0.63	%		0.63	%		0.63	%
Expenses, prior to Waivers(f)		0.73	%(d)		0.92	%		0.69	%		0.93	%		0.94	%		0.86	%
Net investment income (loss), after Waivers		0.72	%(d)		0.72	%		0.41	%		(0.37	)%		0.41	%		0.11	%
Portfolio turnover rate(e)		2	%		39	%		189	%		57	%		113	%		109	%

^(a)  Based on average shares outstanding.

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

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

^(d)  Annualized.

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

^(f)  In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the underlying funds in which the Fund invests. Such indirect expenses are not included in the expense ratio shown. Estimated investment company expenses are not expenses that are incurred directly by the Fund. They are expenses that are incurred directly by the investment companies and are deducted from the value of the funds that the Fund invests in. The effect of the estimated investment company expenses that the Fund bears indirectly is included in the Fund’s total return.

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

60

Financial Highlights (continued)

PowerShares Fundamental Pure Small Value Portfolio (PXSV)

	Six-Months Ended October 31, 2013 (Unaudited)			Year Ended April 30,
				2013			2012			2011			2010			2009
Per Share Operating Performance:
Net asset value at beginning of period	$	19.63		$	16.35		$	17.07		$	14.64		$	10.38		$	15.80
Net investment income(a)		0.14			0.32			0.19			0.16			0.09			0.12
Net realized and unrealized gain (loss) on investments		3.67			3.31			(0.72	)		2.45			4.25			(5.43	)
Total from investment operations		3.81			3.63			(0.53	)		2.61			4.34			(5.31	)
Distributions to shareholders from:
Net investment income		(0.14	)		(0.35	)		(0.19	)		(0.18	)		(0.08	)		(0.11	)
Net asset value at end of period	$	23.30		$	19.63		$	16.35		$	17.07		$	14.64		$	10.38
Market price at end of period(b)	$	23.33		$	19.61		$	16.33		$	17.08		$	14.62		$	10.36
Net Asset Value Total Return(c)		19.52	%		22.56	%		(3.01	)%		18.03	%		42.03	%		(33.69	)%
Market Price Total Return(c)		19.79	%		22.58	%		(3.18	)%		18.26	%		42.11	%		(33.78	)%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	57,074		$	48,084		$	52,312		$	72,540		$	72,453		$	62,253
Ratio to average net assets of:
Expenses, after Waivers		0.39	%(d)		0.39	%		0.43	%		0.63	%		0.63	%		0.63	%
Expenses, prior to Waivers		0.56	%(d)		0.70	%		0.64	%		0.80	%		0.74	%		0.73	%
Net investment income, after Waivers		1.30	%(d)		1.87	%		1.28	%		1.14	%		0.73	%		1.00	%
Portfolio turnover rate(e)		4	%		31	%		109	%		90	%		116	%		98	%

PowerShares Zacks Micro Cap Portfolio (PZI)

	Six-Months Ended October 31, 2013 (Unaudited)			Year Ended April 30,
				2013			2012			2011			2010			2009
Per Share Operating Performance:
Net asset value at beginning of period	$	13.57		$	11.34		$	12.53		$	11.69		$	8.10		$	13.63
Net investment income(a)		0.06			0.20			0.10			0.04			0.04			0.12
Net realized and unrealized gain (loss) on investments		2.15			2.25			(1.16	)		0.88			3.62			(5.48	)
Total from investment operations		2.21			2.45			(1.06	)		0.92			3.66			(5.36	)
Distributions to shareholders from:
Net investment income		(0.08	)		(0.22	)		(0.13	)		(0.08	)		(0.07	)		(0.17	)
Net asset value at end of period	$	15.70		$	13.57		$	11.34		$	12.53		$	11.69		$	8.10
Market price at end of period(b)	$	15.72		$	13.54		$	11.32		$	12.52		$	11.68		$	8.10
Net Asset Value Total Return(c)		16.39	%		21.95	%		(8.34	)%		7.97	%		45.49	%		(39.70	)%
Market Price Total Return(c)		16.79	%		21.90	%		(8.42	)%		7.97	%		45.37	%		(39.66	)%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	56,529		$	42,055		$	34,019		$	98,964		$	53,758		$	46,960
Ratio to average net assets of:
Expenses, after Waivers(f)		0.70	%(d)		0.70	%		0.70	%		0.70	%		0.70	%		0.70	%
Expenses, prior to Waivers(f)		0.82	%(d)		0.98	%		0.92	%		0.85	%		0.93	%		0.86	%
Net investment income, after Waivers		0.78	%(d)		1.72	%		0.92	%		0.39	%		0.38	%		1.11	%
Portfolio turnover rate(e)		61	%		96	%		67	%		61	%		78	%		51	%

^(a)  Based on average shares outstanding.

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

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

^(d)  Annualized.

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

^(f)  In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the underlying funds in which the Fund invests. Such indirect expenses are not included in the expense ratio shown. Estimated investment company expenses are not expenses that are incurred directly by the Fund. They are expenses that are incurred directly by the investment companies and are deducted from the value of the funds that the Fund invests in. The effect of the estimated investment company expenses that the Fund bears indirectly is included in the Fund’s total return.

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

61

Notes to Financial Statements

PowerShares Exchange-Traded Fund Trust

October 31, 2013

(Unaudited)

Note 1. Organization

PowerShares Exchange-Traded Fund Trust (the “Trust”) was organized as a Massachusetts business trust on June 9, 2000 and is authorized to have multiple series of portfolios. The Trust is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As of October 31, 2013, the Trust offered fifty-five portfolios. This report includes the following portfolios:

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

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

The market prices of each Fund’s Shares may differ to some degree from the Fund’s net asset value (“NAV”). Unlike conventional mutual funds, each Fund issues and redeems Shares on a continuous basis, at NAV, only in a large specified number of Shares, each called a “Creation Unit.” Creation Units are issued and redeemed generally in-kind for securities included in each Fund’s 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 generally correspond (before fees and expenses) to the price and yield of its respective index listed below (each, an “Underlying Index”):

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

Note 2. Significant Accounting Policies

The preparation of the financial statements in accordance with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements, including estimates and assumptions related to taxation. Actual results could differ from these estimates. In addition, the 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.

62

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 and closed-end registered investment companies that do not trade on an exchange are valued at the end of day NAV per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.

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

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

Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.

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

Index 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 buy or sell a security unless that security is added or removed, respectively, from its respective Underlying Index, even if that security generally is underperforming.

Equity Risk. The Funds may invest in equity securities. Equity risk is the risk that the value of the securities that a Fund holds will fall due to general market and economic conditions, perceptions regarding the industries in which the issuers of securities a Fund holds participate or factors relating to specific companies in which the Funds invest. For example, an adverse event, such as an unfavorable

63

earnings report, may depress the value of securities a Fund holds; the price of securities may be particularly sensitive to general movements in the stock market; or a drop in the stock market may depress the price of most or all of the securities a Fund holds. In addition, securities of an issuer in the Funds’ portfolio may decline in price if the issuer fails to make anticipated dividend payments because, among other reasons, the issuer of the security experiences a decline in its financial condition.

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

Non-Diversified Fund Risk. Each Fund (except for Dynamic Large Cap Growth Portfolio, Dynamic Large Cap Value Portfolio, Fundamental Pure Large Core Portfolio, Fundamental Pure Mid Core Portfolio, Fundamental Pure Mid Growth Portfolio, Fundamental Pure Mid Value Portfolio, Fundamental Pure Small Core Portfolio, Fundamental Pure Small Growth Portfolio, Fundamental Pure Small Value Portfolio and Zacks Micro Cap Portfolio) is non-diversified and can invest a greater portion of their assets in securities of individual issuers than diversified funds. As a result, changes in the market value of a single investment could cause greater fluctuations in Share price than would occur in a diversified fund. This may increase a Fund’s volatility and cause the performance of a relatively small number of issuers to have a greater impact on a Fund’s performance.

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

Core Risk. For Fundamental Pure Large Core Portfolio, Fundamental Pure Mid Core Portfolio and Fundamental Pure Small Core Portfolio, the returns on “core” securities may or may not move in tandem with the returns on other styles of investing or the overall stock market. Thus, the value of each Fund’s investments will vary and at times may be lower or higher than that of other types of investments.

“Fundamentally Large” Company Risk. For Fundamental Pure Large Core Portfolio, Fundamental Pure Large Growth Portfolio and Fundamental Pure Large Value Portfolio, returns on investments in common stocks of “fundamentally large” U.S. companies could trail the returns on investments in common stocks of smaller companies or other large companies based on market capitalization.

“Fundamentally Mid-Sized” Company Risk. For Fundamental Pure Mid Core Portfolio, Fundamental Pure Mid Growth Portfolio and Fundamental Pure Mid Value Portfolio, investing in common stocks of “fundamentally mid-sized” companies involves greater risk than customarily is associated with investing in larger, more established companies. These companies’ common stocks may be more volatile and less liquid than those of more established companies. These common stocks may have returns that vary, sometimes significantly, from the overall stock market. Often “fundamentally mid-sized” companies and the industries in which they focus are still evolving and, as a result, they may be more sensitive to changing market conditions.

“Fundamentally Small” Company Risk. For Fundamental Pure Small Core Portfolio, Fundamental Pure Small Growth Portfolio and Fundamental Pure Small Value Portfolio, investing in common stocks of “fundamentally small” companies involves greater risk than customarily in associated with investing in larger, more established companies. These companies’ common stocks may be more volatile and less liquid than those of more established companies. These common stocks may have returns that vary, sometimes significantly, from the overall stock market. Often “fundamentally small” companies and the industries in which they focus are still evolving and, as a result, they may be more sensitive to changing market conditions.

Growth Risk. For Dynamic Large Cap Growth Portfolio, Fundamental Pure Large Growth Portfolio, Fundamental Pure Mid Growth Portfolio and Fundamental Pure Small Growth Portfolio, the market values of “growth” securities may be more volatile than other types of investments. The returns on “growth” securities may or may not move in tandem with the returns on other styles of investing or the overall stock market. Thus, the value of each Fund’s investments will vary and at times may be lower or higher than that of other types of investments.

Micro Capitalization Company Risk. The Zacks Micro Cap Portfolio’s investments in the securities of micro capitalization companies involve substantially greater risks of loss and price fluctuations. Micro capitalization companies carry additional risks because their earnings and revenues tend to be less predictable (and some companies may be experiencing significant losses), and their share prices tend to be more volatile and their markets less liquid than companies with larger market capitalizations. Also, it may take a long time before the Fund realizes a gain, if any, on an investment in a micro capitalization company.

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Value Risk. For Dynamic Large Cap Value Portfolio, Fundamental Pure Large Value Portfolio, Fundamental Pure Mid Value Portfolio and Fundamental Pure Small Value Portfolio, “value” securities are subject to the risk that the valuations never improve or that the returns on “value” securities are less than returns on other styles of investing or the overall stock market. Thus, the value of each Fund’s investments will vary and at times may be lower or higher than that of other types of investments.

C. Federal Income Taxes

Each Fund intends to comply with the provisions of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), applicable to regulated investment companies and to distribute substantially all of the Fund’s taxable earnings to its shareholders. As such, the Funds will not be subject to federal income taxes on otherwise taxable income (including net realized gains) that is distributed to the shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.

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

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

D. Investment Transactions and Investment Income

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

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

E. Expenses

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

Each Fund is responsible for all of its expenses, including the investment advisory fees, costs of transfer agency, custody, fund administration, legal, audit and other services, interest, taxes, brokerage commissions and other expenses connected with executions of portfolio transactions, sub-licensing fees related to its respective Underlying Index, any distribution fees or expenses, litigation expenses, fees payable to the Trust’s Board members who are not “interested persons” (as defined in the 1940 Act) of the Trust (the “Independent Trustees”) or the Adviser, expenses incurred in connection with the Board members’ services, including travel expenses and legal fees of counsel for the Independent Trustees, acquired fund fees and expenses, if any, and extraordinary expenses.

To the extent a Fund invests in other investment companies, the expenses shown in the accompanying financial statements reflect the expenses of the Fund and do not include any expenses of the investment companies in which it invests. The effects of such investment companies’ expenses are included in the realized and unrealized gain or loss on the investments in the investment companies.

F. Dividends and Distributions to Shareholders

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

G. Securities Lending

Fundamental Pure Small Value Portfolio and Zacks Micro Cap Portfolio may lend portfolio securities having a market value up to one-third of each Fund’s total assets. Such loans are secured by cash collateral equal to no less than 102% of the market value of the loaned securities determined daily by the securities lending provider. Cash collateral received in connection with these loans is invested in an affiliated money market fund and is shown as such on the Schedule of Investments. It is the policy of these Funds to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. Lending securities entails a risk of loss to a Fund if, and to the extent that, the market value of the securities loaned were to increase, and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. A Fund could experience delays and costs in gaining access to the collateral. A Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash

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collateral investments for securities lending transactions, which are net of compensation to counterparties, are included in Securities lending income on the Statements of Operations. The aggregate value of securities out on loan is shown on the Statements of Assets and Liabilities, if any.

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 for the selection and ongoing monitoring of the Funds’ investments, managing the Funds’ business affairs and providing certain clerical, bookkeeping and other administrative services. Each Fund (except for the Dynamic Large Cap Growth Portfolio, Dynamic Large Cap Value Portfolio and Zacks Micro Cap Portfolio) has agreed to pay the Adviser an annual fee of 0.29% of the Fund’s average daily net assets. Each of the Dynamic Large Cap Growth Portfolio, Dynamic Large Cap Value Portfolio and Zacks Micro Cap Portfolio has agreed to pay the Adviser an annual fee of 0.50% of the Fund’s average daily net assets.

The Adviser has entered into an Amended and Restated Excess Expense Agreement (the “Expense Agreement”) with the Trust, pursuant to which the Adviser has agreed to waive fees and/or pay Fund expenses to the extent necessary to prevent the operating expenses (excluding interest expenses, brokerage commissions and other trading expenses, offering costs, taxes, acquired fund fees and expenses, if any, and extraordinary expenses) of each Fund (except for Dynamic Large Cap Growth Portfolio, Dynamic Large Cap Value Portfolio and Zacks Micro Cap Portfolio) from exceeding 0.39% of the Fund’s average daily net assets per year (the “Expense Cap”), through at least August 31, 2014. The Expense Cap for each of Dynamic Large Cap Growth Portfolio, Dynamic Large Cap Value Portfolio and Zacks Micro Cap Portfolio is 0.60% of the Fund’s average daily net assets per year, through at least August 31, 2014, and sub-licensing fees are excluded from the expenses subject to the Expense Cap for these Funds in addition to the excluded expenses above. Offering costs excluded from each Expense Cap are: (a) initial legal fees pertaining to the Funds’ Shares offered for sale; (b) initial Securities and Exchange Commission and state registration fees; and (c) initial fees paid to be listed on an exchange. Unless the Adviser continues the fee waiver agreement, it will terminate on August 31, 2014. The fee waiver agreement cannot be terminated during its term. The Adviser did not waive fees and/or pay Fund expenses during the period under this expense limitation for Dynamic Large Cap Growth Portfolio and Dynamic Large Cap Value Portfolio.

Further, the Adviser has contractually agreed, through at least August 31, 2015, to waive the advisory fee payable by each Fund in an amount equal to 100% of the net advisory fees the Adviser’s affiliate receives from the affiliated money market funds on investments by a Fund (excluding investments of cash collateral from securities lending) in such affiliated money market funds.

For the six-months ended October 31, 2013, the Adviser waived fees and/or paid Fund expenses for each Fund, in the following amounts:

Dynamic Large Cap Growth Portfolio	$	42
Dynamic Large Cap Value Portfolio		116
Fundamental Pure Large Core Portfolio		39,069
Fundamental Pure Large Growth Portfolio		31,065
Fundamental Pure Large Value Portfolio		40,171
Fundamental Pure Mid Core Portfolio		40,446
Fundamental Pure Mid Growth Portfolio		35,163
Fundamental Pure Mid Value Portfolio		42,923
Fundamental Pure Small Core Portfolio		45,613
Fundamental Pure Small Growth Portfolio		46,429
Fundamental Pure Small Value Portfolio		46,611
Zacks Micro Cap Portfolio		29,454

The Expense Agreement provides that the fees waived or expenses borne by the Adviser are subject to recapture by the Adviser for up to three years from the date the fee was waived or expense was borne by the Adviser, but no recapture payment will be made by a Fund if it would result in the Fund exceeding its Expense Cap as specified above.

The amounts available for potential future recapture by the Adviser under the Expense Agreement and the expiration schedule at October 31, 2013 are as follows:

	Total Potential Recapture Amount		Potential Recapture Amounts Expiring
			04/30/14		04/30/15		04/30/16		10/31/16
Fundamental Pure Large Core Portfolio	$	322,497	$	58,986	$	119,199	$	105,264	$	39,048
Fundamental Pure Large Growth Portfolio		255,108		—		129,956		94,097		31,055
Fundamental Pure Large Value Portfolio		272,495		—		133,196		99,141		40,158
Fundamental Pure Mid Core Portfolio		334,685		63,040		121,623		109,592		40,430

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	Total Potential Recapture Amount		Potential Recapture Amounts Expiring
			04/30/14		04/30/15		04/30/16		10/31/16
Fundamental Pure Mid Growth Portfolio		306,668		32,732		120,951		117,856		35,129
Fundamental Pure Mid Value Portfolio		344,071		58,338		117,234		125,577		42,922
Fundamental Pure Small Core Portfolio		354,260		68,788		125,378		114,500		45,594
Fundamental Pure Small Growth Portfolio		358,435		54,375		114,756		142,898		46,406
Fundamental Pure Small Value Portfolio		370,671		58,043		120,928		145,112		46,588
Zacks Micro Cap Portfolio		270,562		52,593		102,215		86,324		29,430

The Trust has entered into a Distribution Agreement with Invesco Distributors, Inc. (the “Distributor”), which serves as the distributor of Creation Units for each Fund. The Distributor does not maintain a secondary market in the Shares. The Funds are not charged any fees pursuant to the Distribution Agreement. The Distributor is an affiliate of the Adviser.

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

Fund	Licensor
Dynamic Large Cap Growth Portfolio	NYSE Arca, Inc.
Dynamic Large Cap Value Portfolio	NYSE Arca, Inc.
Fundamental Pure Large Core Portfolio	Research Affiliates, LLC
Fundamental Pure Large Growth Portfolio	Research Affiliates, LLC
Fundamental Pure Large Value Portfolio	Research Affiliates, LLC
Fundamental Pure Mid Core Portfolio	Research Affiliates, LLC
Fundamental Pure Mid Growth Portfolio	Research Affiliates, LLC
Fundamental Pure Mid Value Portfolio	Research Affiliates, LLC
Fundamental Pure Small Core Portfolio	Research Affiliates, LLC
Fundamental Pure Small Growth Portfolio	Research Affiliates, LLC
Fundamental Pure Small Value Portfolio	Research Affiliates, LLC
Zacks Micro Cap Portfolio	Zacks Investment Research

Each Underlying Index name trademark is owned by its respective Licensor. These trademarks have been licensed to the Adviser for use with the Funds. Each Fund is entitled to use its Underlying Index pursuant to the Trust’s sub-licensing agreement with the Adviser. The Funds are required to pay the sub-licensing fees that are shown on the Statements of Operations. The Funds are not sponsored, endorsed, sold or promoted by the Licensors, and the Licensors make no representation regarding the advisability of investing in any of these Funds.

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

Note 4. Investments in Affiliates

Each Fund’s Adviser and Invesco Mortgage Capital, Inc. REIT are wholly-owned subsidiaries of Invesco Ltd., and therefore Invesco Ltd. and Invesco Mortgage Capital, Inc. REIT are considered to be affiliated. The table below shows each Fund’s transactions in, and earnings from, its investments in Invesco Ltd. and Invesco Mortgage Capital, Inc. REIT for the six-month period ended October 31, 2013.

Fundamental Pure Mid Core Portfolio

	Value April 30, 2013		Purchases at Cost		Proceeds from Sales			Change in Unrealized Appreciation		Realized Gain (Loss)			Value October 31, 2013		Dividend Income
Invesco Ltd.	$	250,556	$	50,772	$	(3,169	)	$	19,470	$	(177	)	$	317,452	$	3,860

Fundamental Pure Small Growth Portfolio

	Value April 30, 2013		Purchases at Cost		Proceeds from Sales			Change in Unrealized Appreciation (Depreciation)			Realized Gain		Value October 31, 2013		Dividend Income
Invesco Mortgage Capital, Inc. REIT	$	216,525	$	5,036	$	(19,054	)	$	(57,283	)	$	1,659	$	146,883	$	9,594

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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 October 31, 2013, the securities in each Fund were valued based on Level 1 inputs (see the Schedule of Investments for security categories). The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

Note 6. Tax Information

The amount and character of income and gains to be distributed are determined in accordance with federal income tax regulations, which may differ from GAAP. Reclassifications are made to the Funds’ capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under federal income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Funds’ 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. Capital losses generated in years beginning after December 22, 2010 can be carried forward for an unlimited period, whereas previous losses expire in 8 tax years. Capital losses with an expiration period may not be used to offset capital gains until all net capital losses without an expiration date have been utilized. Capital loss carryforwards with no expiration date will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The ability to utilize capital loss carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.

The following Funds had a capital loss carryforward as of April 30, 2013, which expires as follows:

													Post-effective no expiration
	2014		2015		2016		2017		2018		2019		Short-term		Long-term		Total*
Dynamic Large Cap Growth Portfolio	$	191,864	$	10,916,066	$	14,024,455	$	68,715,641	$	131,638,879	$	15,986,258	$	17,002,918	$	1,187,467	$	259,663,548
Dynamic Large Cap Value Portfolio		70,814		1,378,743		2,783,761		22,558,581		56,819,182		17,964,198		25,618,203		7,417,904		134,611,386
Fundamental Pure Large Core Portfolio**		—		—		87,112		2,328,337		5,621,834		1,626,267		1,095,743		—		10,759,293
Fundamental Pure Large Growth Portfolio**		—		—		—		—		—		—		—		—		—
Fundamental Pure Large Value Portfolio**		—		—		—		—		—		—		—		—		—
Fundamental Pure Mid Core Portfolio		—		—		628,828		3,815,763		3,611,366		741,893		1,573,847		67,978		10,439,675
Fundamental Pure Mid Growth Portfolio		422,220		8,055,857		5,112,579		54,769,394		82,364,246		12,021,724		7,467,612		556		170,214,188
Fundamental Pure Mid Value Portfolio		237,806		2,384,765		5,347,255		12,697,113		18,996,863		2,751,107		2,697,084		158,928		45,270,921
Fundamental Pure Small Core Portfolio		—		—		1,028,299		2,738,120		2,009,294		2,491,519		1,228,681		178,508		9,674,421
Fundamental Pure Small Growth Portfolio		823,782		13,094,039		6,666,558		9,888,431		10,392,627		4,547,805		4,774,753		—		50,187,995
Fundamental Pure Small Value Portfolio		703,862		3,929,009		8,615,687		16,547,947		9,588,502		5,376,983		1,170,650		—		45,932,640
Zacks Micro Cap Portfolio		1,951,245		15,172,527		14,330,930		28,782,755		12,380,833		7,234,973		11,560,691		1,194,138		92,608,092

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

** During the fiscal year ended April 30, 2013, the Fundamental Pure Large Core, Fundamental Pure Large Growth and Fundamental Pure Large Value Portfolios utilized capital loss carryforwards of $270,367, $288 and $888, respectively, to offset realized gains.

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Note 7. Investment Transactions

For the six-month period ended October 31, 2013, the cost of securities purchased and proceeds from sales of securities, excluding short-term securities, money market funds and in-kind transactions, were as follows:

	Purchases		Sales
Dynamic Large Cap Growth Portfolio	$	121,637,921	$	122,625,363
Dynamic Large Cap Value Portfolio		334,440,924		334,250,598
Fundamental Pure Large Core Portfolio		1,378,862		411,795
Fundamental Pure Large Growth Portfolio		840,758		1,215,945
Fundamental Pure Large Value Portfolio		353,867		316,195
Fundamental Pure Mid Core Portfolio		847,616		867,068
Fundamental Pure Mid Growth Portfolio		2,628,703		2,799,022
Fundamental Pure Mid Value Portfolio		753,982		726,807
Fundamental Pure Small Core Portfolio		383,761		419,585
Fundamental Pure Small Growth Portfolio		542,275		713,088
Fundamental Pure Small Value Portfolio		2,156,997		2,155,357
Zacks Micro Cap Portfolio		30,020,486		30,199,594

For the six-month period ended October 31, 2013, in-kind transactions associated with creations and redemptions were as follows:

	Securities Received		Securities Delivered
Dynamic Large Cap Growth Portfolio	$	121,355,735	$	118,294,683
Dynamic Large Cap Value Portfolio		363,261,917		302,725,677
Fundamental Pure Large Core Portfolio		2,368,396		—
Fundamental Pure Large Growth Portfolio		9,128,111		2,575,216
Fundamental Pure Large Value Portfolio		3,905,195		—
Fundamental Pure Mid Core Portfolio		2,984,064		—
Fundamental Pure Mid Growth Portfolio		—		1,354,242
Fundamental Pure Mid Value Portfolio		5,431,926		—
Fundamental Pure Small Core Portfolio		1,418,730		2,855,603
Fundamental Pure Small Growth Portfolio		—		2,037,240
Fundamental Pure Small Value Portfolio		—		—
Zacks Micro Cap Portfolio		26,284,924		18,588,906

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

At October 31, 2013, 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.

At October 31, 2013, the aggregate cost and the net unrealized appreciation of investments for tax purposes were as follows:

	Cost		Net Unrealized Appreciation		Gross Unrealized Appreciation		Gross Unrealized (Depreciation)
Dynamic Large Cap Growth Portfolio	$	198,353,160	$	48,958,373	$	49,475,600	$	(517,227	)
Dynamic Large Cap Value Portfolio		582,934,939		93,316,589		99,006,458		(5,689,869	)
Fundamental Pure Large Core Portfolio		28,200,379		6,244,901		6,394,573		(149,672	)
Fundamental Pure Large Growth Portfolio		86,088,121		10,426,845		11,479,694		(1,052,849	)
Fundamental Pure Large Value Portfolio		10,793,821		1,446,872		1,526,323		(79,451	)
Fundamental Pure Mid Core Portfolio		21,392,540		4,101,988		4,457,076		(355,088	)
Fundamental Pure Mid Growth Portfolio		72,979,087		14,542,726		17,811,621		(3,268,895	)
Fundamental Pure Mid Value Portfolio		30,322,328		7,381,195		8,109,351		(728,156	)
Fundamental Pure Small Core Portfolio		13,070,062		2,726,980		3,207,165		(480,185	)
Fundamental Pure Small Growth Portfolio		23,794,387		4,506,498		6,287,196		(1,780,698	)
Fundamental Pure Small Value Portfolio		47,440,658		11,688,399		13,718,550		(2,030,151	)
Zacks Micro Cap Portfolio		52,961,071		5,246,497		7,066,119		(1,819,622	)

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Note 8. Trustees’ Fees

The Funds compensate each Independent Trustee. The Trustee who is an “interested person” (the “Non-Independent Trustee”) of the Trust does not receive any Trustees’ fees.

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

Note 9. Capital

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

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

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

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.

70

Proxy Voting Policies and Procedures

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

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

Quarterly Portfolios

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

Frequency Distribution of Discounts and Premiums

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

©2013 Invesco PowerShares Capital Management LLC			P-PS-SAR-5
3500 Lacey Road, Suite 700 Downers Grove, IL 60515
invescopowershares.com    800.983.0903		@PowerShares

October 31, 2013

2013 Semi-Annual Report to Shareholders

PPA	PowerShares Aerospace & Defense Portfolio
PZD	PowerShares CleantechTM Portfolio
PDP	PowerShares DWA Momentum Portfolio (formerly PowerShares DWA Technical LeadersTM Portfolio)
PSP	PowerShares Global Listed Private Equity Portfolio
PGJ	PowerShares Golden Dragon China Portfolio
PXN	PowerShares Lux Nanotech Portfolio
PBP	PowerShares S&P 500 BuyWrite Portfolio
SPHQ	PowerShares S&P 500® High Quality Portfolio
PHO	PowerShares Water Resources Portfolio
PBW	PowerShares WilderHill Clean Energy Portfolio
PUW	PowerShares WilderHill Progressive Energy Portfolio

Table of Contents

Fees and Expenses	3
Specialty Portfolios
Schedules of Investments
PowerShares Aerospace & Defense Portfolio (PPA)	5
PowerShares Cleantech™ Portfolio (PZD)	7
PowerShares DWA Momentum Portfolio (PDP) (formerly PowerShares DWA Technical LeadersTM Portfolio)	9
PowerShares Global Listed Private Equity Portfolio (PSP)	11
PowerShares Golden Dragon China Portfolio (PGJ)	13
PowerShares Lux Nanotech Portfolio (PXN)	15
PowerShares S&P 500 BuyWrite Portfolio (PBP)	17
PowerShares S&P 500® High Quality Portfolio (SPHQ)	23
PowerShares Water Resources Portfolio (PHO)	26
PowerShares WilderHill Clean Energy Portfolio (PBW)	28
PowerShares WilderHill Progressive Energy Portfolio (PUW)	30
Statements of Assets and Liabilities	32
Statements of Operations	34
Statements of Changes in Net Assets	36
Financial Highlights	40
Notes to Financial Statements	46

2

Fees and Expenses

As a shareholder of a Fund of the PowerShares Exchange-Traded Fund Trust, (excluding PowerShares S&P 500 BuyWrite Portfolio), you incur advisory fees and other Fund expenses. As a shareholder of a Fund of the PowerShares S&P 500 BuyWrite Portfolio, you incur a unitary management fee. In addition to the unitary management fee, a shareholder may pay distribution fees, if any, brokerage expenses, taxes, interest, litigation expenses and other extraordinary expenses (including acquired fund fees and expenses, if any). The expense examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other funds.

The example is based on an investment of $1,000 invested at the beginning of the period and held through the six-month period ended October 31, 2013.

In pursuing their investment objectives, PowerShares DWA Momentum Portfolio, PowerShares Global Listed Private Equity Portfolio and PowerShares Lux Nanotech Portfolio (the “Portfolios”) may invest a portion of their assets in investment companies. Each Portfolio indirectly bears a pro rata share of the fees and expenses of the investment companies in which each Portfolio invests. The effect of such expenses are included in each Portfolio’s total return.

Actual Expenses

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

Hypothetical Example for Comparison Purposes

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

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

	Beginning Account Value May 1, 2013		Ending Account Value October 31, 2013		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During the Six-Month  Period(1)
PowerShares Aerospace & Defense Portfolio (PPA)
Actual	$	1,000.00	$	1,248.10		0.66	%	$	3.74
Hypothetical (5% return before expenses)		1,000.00		1,021.88		0.66			3.36
PowerShares CleantechTM Portfolio (PZD)
Actual		1,000.00		1,189.37		0.67			3.70
Hypothetical (5% return before expenses)		1,000.00		1,021.83		0.67			3.41
PowerShares DWA Momentum Portfolio (PDP)
Actual		1,000.00		1,093.70		0.64			3.38
Hypothetical (5% return before expenses)		1,000.00		1,021.98		0.64			3.26
PowerShares Global Listed Private Equity Portfolio (PSP)
Actual		1,000.00		1,114.26		0.69			3.68
Hypothetical (5% return before expenses)		1,000.00		1,021.73		0.69			3.52
PowerShares Golden Dragon China Portfolio (PGJ)
Actual		1,000.00		1,454.82		0.70			4.33
Hypothetical (5% return before expenses)		1,000.00		1,021.68		0.70			3.57

3

Fees and Expenses (continued)

	Beginning Account Value May 1, 2013		Ending Account Value October 31, 2013		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During the Six-Month  Period(1)
PowerShares Lux Nanotech Portfolio (PXN)
Actual	$	1,000.00	$	1,024.35		0.69	%	$	3.52
Hypothetical (5% return before expenses)		1,000.00		1,021.73		0.69			3.52
PowerShares S&P 500 BuyWrite Portfolio (PBP)
Actual		1,000.00		1,025.93		0.75			3.83
Hypothetical (5% return before expenses)		1,000.00		1,021.42		0.75			3.82
PowerShares S&P 500® High Quality Portfolio (SPHQ)
Actual		1,000.00		1,106.64		0.29			1.54
Hypothetical (5% return before expenses)		1,000.00		1,023.74		0.29			1.48
PowerShares Water Resources Portfolio (PHO)
Actual		1,000.00		1,130.02		0.62			3.33
Hypothetical (5% return before expenses)		1,000.00		1,022.08		0.62			3.16
PowerShares WilderHill Clean Energy Portfolio (PBW)
Actual		1,000.00		1,360.73		0.70			4.17
Hypothetical (5% return before expenses)		1,000.00		1,021.68		0.70			3.57
PowerShares WilderHill Progressive Energy Portfolio (PUW)
Actual		1,000.00		1,104.44		0.70			3.71
Hypothetical (5% return before expenses)		1,000.00		1,021.68		0.70			3.57

⁽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 October 31, 2013. Expenses are calculated by multiplying the Fund’s annualized expense ratio by the average account value for the period, then multiplying the result by 184/365.

4

Portfolio Composition

PowerShares Aerospace & Defense Portfolio (PPA)

Industry Breakdown (% of the Fund’s Net Assets) as of October 31, 2013 (Unaudited)
Aerospace & Defense	77.7
IT Services	7.9
Communications Equipment	4.5
Containers & Packaging	3.0
Electronic Equipment, Instruments & Components	2.5
Machinery	1.8
Construction & Engineering	1.7
Diversified Telecommunication Services	0.9
Money Market Fund Plus Other Assets Less Liabilities	0.0

Schedule of Investments^(a)

PowerShares Aerospace & Defense Portfolio (PPA)

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks—100.0%
		Aerospace & Defense—77.7%
	13,640	AAR Corp.	$	399,379
	7,895	Aerovironment, Inc.(b)		214,033
	11,148	Alliant Techsystems, Inc.		1,213,683
	2,721	American Science & Engineering, Inc.		178,987
	42,457	Boeing Co. (The)		5,540,638
	9,304	Cubic Corp.		488,460
	26,065	DigitalGlobe, Inc.(b)		829,388
	3,716	Ducommun, Inc.(b)		92,380
	5,990	Engility Holdings, Inc.(b)		185,510
	10,922	Esterline Technologies Corp.(b)		875,508
	65,540	Exelis, Inc.		1,080,755
	21,091	GenCorp, Inc.(b)		354,329
	44,789	General Dynamics Corp.		3,880,071
	23,092	HEICO Corp.		1,237,269
	34,629	Hexcel Corp.(b)		1,465,153
	59,968	Honeywell International, Inc.		5,201,025
	17,326	Huntington Ingalls Industries, Inc.		1,239,675
	12,763	KEYW Holding Corp. (The)(b)		146,775
	19,840	Kratos Defense & Security Solutions, Inc.(b)		168,243
	31,179	L-3 Communications Holdings, Inc.		3,131,931
	4,477	LMI Aerospace, Inc.(b)		70,289
	39,430	Lockheed Martin Corp.		5,257,596
	15,730	Moog, Inc., Class A(b)		939,553
	37,041	Northrop Grumman Corp.		3,982,278
	20,938	Orbital Sciences Corp.(b)		483,040
	18,631	Precision Castparts Corp.		4,722,027
	45,153	Raytheon Co.		3,719,253
	45,517	Rockwell Collins, Inc.		3,178,452
	17,773	Taser International, Inc.(b)		315,826

Number of Shares			Value
		Common Stocks (continued)
		Aerospace & Defense (continued)
	13,031	Teledyne Technologies, Inc.(b)	$	1,157,413
	97,628	Textron, Inc.		2,810,710
	18,287	TransDigm Group, Inc.		2,659,113
	18,105	Triumph Group, Inc.		1,297,223
	45,931	United Technologies Corp.		4,880,169
				63,396,134
		Communications Equipment—4.5%
	4,636	Anaren, Inc.(b)		115,808
	5,709	Comtech Telecommunications Corp.		171,384
	37,218	Harris Corp.		2,306,027
	15,818	ViaSat, Inc.(b)		1,045,886
				3,639,105
		Construction & Engineering—1.7%
	26,063	URS Corp.		1,413,136
		Containers & Packaging—3.0%
	50,500	Ball Corp.		2,468,945
		Diversified Telecommunication Services—0.9%
	36,689	Intelsat SA(b)		748,089
		Electronic Equipment, Instruments & Components—2.5%
	49,450	FLIR Systems, Inc.		1,408,336
	11,564	Mercury Systems, Inc.(b)		106,620
	6,954	OSI Systems, Inc.(b)		506,529
				2,021,485
		IT Services—7.9%
	50,996	Booz Allen Hamilton Holding Corp.		1,009,721
	8,097	CACI International, Inc., Class A(b)		582,822

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

5

PowerShares Aerospace & Defense Portfolio (PPA) (continued)

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks (continued)
		IT Services (continued)
	51,402	Computer Sciences Corp.	$	2,532,062
	29,820	Leidos Holdings, Inc.		1,404,224
	12,933	ManTech International Corp., Class A		361,348
	17,041	Science Applications International Corp.		600,695
				6,490,872
		Machinery—1.8%
	30,273	Oshkosh Corp.(b)		1,440,692
		Total Common Stocks (Cost $72,463,483)		81,618,458
		Money Market Fund—0.1%
	96,780	Premier Portfolio—Institutional Class(c) (Cost $96,780)		96,780
		Total Investments (Cost $72,560,263)—100.1%		81,715,238
		Other assets less liabilities—(0.1)%		(95,066	)
		Net Assets—100.0%	$	81,620,172

Notes to Schedule of Investments:

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

^(b)  Non-income producing security.

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

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

6

Portfolio Composition

PowerShares Cleantech™ Portfolio (PZD)

Industry Breakdown (% of the Fund’s Net Assets) as of October 31, 2013 (Unaudited)
Electrical Equipment	20.1
Machinery	19.4
Electronic Equipment, Instruments & Components	9.2
Software	7.3
Auto Components	6.8
Semiconductors & Semiconductor Equipment	6.3
Chemicals	5.2
Industrial Conglomerates	4.2
Professional Services	3.6
Biotechnology	3.2
Construction & Engineering	2.9
Life Sciences Tools & Services	2.3
Commercial Services & Supplies	2.3
Aerospace & Defense	2.3
Independent Power Producers & Energy Traders	2.1
Building Products	2.1
Water Utilities	0.7
Money Market Funds Plus Other Assets Less Liabilities	0.0

Schedule of Investments^(a)

PowerShares Cleantech™ Portfolio (PZD)

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks—100.0%
		Aerospace & Defense—2.3%
	42,312	Hexcel Corp.(b)	$	1,790,221
		Auto Components—6.8%
	23,037	BorgWarner, Inc.		2,375,806
	21,487	Fuel Systems Solutions, Inc.(b)		385,906
	54,844	Johnson Controls, Inc.		2,531,051
				5,292,763
		Biotechnology—3.2%
	62,535	Novozymes A/S, Class B (Denmark)		2,452,956
		Building Products—2.1%
	79,484	Kingspan Group PLC (Ireland)		1,331,280
	12,963	WaterFurnace Renewable Energy, Inc. (Canada)		285,774
				1,617,054

Number of Shares			Value
		Common Stocks (continued)
		Chemicals—5.2%
	430	Gurit Holding AG (Switzerland)(b)	$	200,268
	30,202	Koninklijke DSM NV (Netherlands)		2,290,715
	33,217	Umicore SA (Belgium)		1,586,643
				4,077,626
		Commercial Services & Supplies—2.3%
	37,328	Tetra Tech, Inc.(b)		975,381
	91,382	Tomra Systems ASA (Norway)		841,186
				1,816,567
		Construction & Engineering—2.9%
	31,824	Aegion Corp.(b)		652,392
	49,355	Ameresco, Inc., Class A(b)		516,253
	35,379	Arcadis NV (Netherlands)		1,112,260
				2,280,905

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

7

PowerShares Cleantech™ Portfolio (PZD) (continued)

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks (continued)
		Electrical Equipment—20.1%
	98,948	ABB Ltd. (Switzerland)(b)	$	2,531,749
	22,147	EnerSys		1,469,453
	121,964	Gamesa Corp. Tecnologica SA (Spain)(b)		1,183,883
	23,478	Polypore International, Inc.(b)(c)		1,061,206
	25,680	PowerSecure International, Inc.(b)		464,294
	17,552	Roper Industries, Inc.		2,225,769
	18,975	Saft Groupe SA (France)		603,122
	26,622	Schneider Electric SA (France)		2,245,750
	31,950	SGL Carbon SE (Germany)(c)		1,250,522
	9,697	Vacon Oyj (Finland)		722,432
	71,457	Vestas Wind Systems A/S (Denmark)(b)		1,921,150
				15,679,330
		Electronic Equipment, Instruments & Components—9.2%
	11,006	Badger Meter, Inc.		572,422
	158,415	Corning, Inc.(c)		2,707,312
	25,096	HORIBA Ltd. (Japan)		915,745
	22,669	Itron, Inc.(b)(c)		967,286
	71,710	Trimble Navigation Ltd.(b)		2,048,755
				7,211,520
		Independent Power Producers & Energy Traders—2.1%
	8,086,708	Energy Development Corp. (Netherlands)		1,085,464
	22,354	Ormat Technologies, Inc. (Israel)		582,769
				1,668,233
		Industrial Conglomerates—4.2%
	22,123	Raven Industries, Inc.		738,023
	19,510	Siemens AG (Germany)		2,498,014
				3,236,037
		Life Sciences Tools & Services—2.3%
	6,641	Eurofins Scientific (France)		1,823,292
		Machinery—19.4%
	94,712	Alfa Laval AB (Sweden)		2,166,167
	23,757	CLARCOR, Inc.		1,389,309
	49,652	Donaldson Co., Inc.		1,966,716
	20,764	ESCO Technologies, Inc.		749,165
	14,317	Kadant, Inc.(b)		512,549
	47,818	Kurita Water Industries Ltd. (Japan)		1,043,018
	8,629	Lindsay Corp.		655,890
	69,481	Meyer Burger Technology AG (Switzerland)(b)(c)		817,153
	27,412	Pall Corp.		2,207,214
	14,279	Westport Innovations, Inc. (Canada)(b)(c)		334,366
	31,667	Woodward, Inc.		1,269,530
	59,370	Xylem, Inc.		2,048,265
				15,159,342
		Professional Services—3.6%
	25,908	Mistras Group, Inc.(b)		475,671
	999	SGS SA (Switzerland)		2,345,397
				2,821,068
		Semiconductors & Semiconductor Equipment—6.3%
	29,777	Advanced Energy Industries, Inc.(b)		621,744
	31,873	Cree, Inc.(b)(c)		1,936,285
	89,094	GT Advanced Technologies, Inc.(b)(c)		668,205
	16,729	Power Integrations, Inc.		960,914
	17,706	SMA Solar Technology AG (Germany)		724,064
				4,911,212

Number of Shares			Value
		Common Stocks (continued)
		Software—7.3%
	24,598	ANSYS, Inc.(b)	$	2,151,095
	57,746	Autodesk, Inc.(b)		2,304,643
	22,590	FleetMarics Group PLC(b)		717,233
	25,587	Silver Spring Networks, Inc.(b)		558,820
				5,731,791
		Water Utilities—0.7%
	535,930	Hyflux Ltd. (Singapore)		501,212
		Total Common Stocks (Cost $59,116,438)		78,071,129
		Money Market Fund—0.0%
	32,355	Premier Portfolio—Institutional Class(d) (Cost $32,355)		32,355
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $59,148,793)—100.0%		78,103,484
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—9.2%
	7,155,748	Invesco Liquid Assets Portfolio—Institutional Class (Cost $7,155,748)(d)(e)		7,155,748
		Total Investments (Cost $66,304,541)—109.2%		85,259,232
		Other assets less liabilities—(9.2)%		(7,149,998	)
		Net Assets—100.0%	$	78,109,234

Notes to Schedule of Investments:

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

^(b)  Non-income producing security.

^(c)  All or a portion of this security was out on loan at October 31, 2013.

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

^(e)  The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2I.

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

8

Portfolio Composition

PowerShares DWA Momentum Portfolio (PDP)

Sector Breakdown (% of the Fund’s Net Assets) as of October 31, 2013 (Unaudited)
Consumer Discretionary	28.5
Industrials	17.7
Health Care	17.2
Materials	11.6
Information Technology	9.1
Financials	6.3
Energy	3.5
Consumer Staples	3.3
Utilities	2.1
Telecommunication Services	0.7
Money Market Fund Plus Other Assets Less Liabilities	(0.0)

Schedule of Investments^(a)

PowerShares DWA Momentum Portfolio (PDP)

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—28.5%
	16,593	Amazon.com, Inc.(b)	$	6,040,350
	149,743	Brinker International, Inc.		6,651,584
	71,072	Carter’s, Inc.		4,914,629
	161,043	CBS Corp., Class B		9,524,083
	20,450	Chipotle Mexican Grill, Inc.(b)		10,776,536
	76,780	Discovery Communications, Inc., Class A(b)		6,827,278
	141,707	Dollar Tree, Inc.(b)		8,275,689
	213,183	Domino’s Pizza, Inc.		14,296,052
	97,827	Hanesbrands, Inc.		6,663,975
	110,972	Jarden Corp.(b)		6,143,410
	331,001	Liberty Interactive Corp., Class A(b)		8,923,787
	162,824	Lions Gate Entertainment Corp.(b)		5,630,454
	20,114	Netflix, Inc.(b)		6,486,363
	213,895	O’Reilly Automotive, Inc.(b)		26,482,340
	63,364	Polaris Industries, Inc.		8,297,516
	27,363	Priceline.com, Inc.(b)		28,835,950
	297,311	Service Corp. International		5,354,571
	95,300	Signet Jewelers Ltd.		7,115,098
	73,375	Starbucks Corp.		5,947,044
	994,989	Starz, Class A(b)		29,998,918
	40,017	Tesla Motors, Inc.(b)		6,400,319
	90,020	TJX Cos., Inc. (The)		5,472,316
	318,852	TRW Automotive Holdings Corp.(b)		23,948,974
	113,840	Ulta Salon, Cosmetics & Fragrance, Inc.(b)		14,668,284
	77,662	Under Armour, Inc., Class A(b)		6,302,271

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Discretionary (continued)
	48,909	VF Corp.	$	10,515,435
	195,931	Wyndham Worldwide Corp.		13,009,818
	32,162	Wynn Resorts Ltd.		5,346,932
				298,849,976
		Consumer Staples—3.3%
	92,956	Brown-Forman Corp., Class B		6,783,929
	84,160	Herbalife Ltd. (Cayman Islands)		5,455,251
	154,679	Hormel Foods Corp.		6,722,349
	58,906	J.M. Smucker Co. (The)		6,550,936
	137,920	Whole Foods Market, Inc.		8,706,890
				34,219,355
		Energy—3.5%
	183,962	Cheniere Energy, Inc.(b)		7,321,688
	173,517	EQT Corp.		14,854,790
	66,443	Oceaneering International, Inc.		5,706,125
	43,514	Pioneer Natural Resources Co.		8,910,797
				36,793,400
		Financials—6.3%
	66,595	ACE Ltd.		6,355,827
	31,454	Affiliated Managers Group, Inc.(b)		6,210,278
	279,165	Arch Capital Group Ltd.(b)		16,180,403
	105,128	Discover Financial Services		5,454,041
	110,561	Extra Space Storage, Inc. REIT		5,084,700
	169,543	HCC Insurance Holdings, Inc.		7,739,638

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

9

PowerShares DWA Momentum Portfolio (PDP) (continued)

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	104,571	Ocwen Financial Corp.(b)	$	5,880,027
	125,075	Rayonier, Inc. REIT		5,881,027
	235,462	XL Group PLC		7,198,073
				65,984,014
		Health Care—17.2%
	40,275	Actavis PLC(b)		6,225,709
	187,246	Alexion Pharmaceuticals, Inc.(b)		23,021,896
	476,926	ARIAD Pharmaceuticals, Inc.(b)		1,049,237
	102,917	Cerner Corp.(b)		5,766,440
	67,076	Cigna Corp.		5,163,510
	51,537	Cooper Cos., Inc. (The)		6,659,096
	435,105	Gilead Sciences, Inc.(b)		30,888,104
	160,387	Henry Schein, Inc.(b)		18,032,310
	311,247	Jazz Pharmaceuticals PLC(b)		28,242,553
	164,668	Medivation, Inc.(b)		9,857,026
	23,782	Mettler-Toledo International, Inc.(b)		5,885,094
	166,934	Pharmacyclics, Inc.(b)		19,805,050
	67,163	Regeneron Pharmaceuticals, Inc.(b)		19,316,079
				179,912,104
		Industrials—17.7%
	95,473	B/E Aerospace, Inc.(b)		7,748,589
	106,766	Chicago Bridge & Iron Co. NV		7,910,293
	96,279	Colfax Corp.(b)		5,387,773
	108,794	Danaher Corp.		7,842,959
	368,987	J.B. Hunt Transport Services, Inc.		27,685,095
	123,524	Kirby Corp.(b)		10,930,639
	65,833	Lockheed Martin Corp.		8,778,172
	109,223	Nordson Corp.		7,873,886
	115,854	Old Dominion Freight Line, Inc.(b)		5,433,552
	90,941	Pentair Ltd.		6,101,232
	76,031	Precision Castparts Corp.		19,270,057
	102,796	Roper Industries, Inc.		13,035,561
	59,305	Towers Watson & Co., Class A		6,808,807
	59,395	Union Pacific Corp.		8,992,403
	153,598	United Rentals, Inc.(b)		9,920,895
	40,924	W.W. Grainger, Inc.		11,007,328
	62,080	WABCO Holdings, Inc.(b)		5,319,014
	356,261	Waste Connections, Inc.		15,226,595
				185,272,850
		Information Technology—9.1%
	94,834	3D Systems Corp.(b)		5,902,468
	107,690	Amphenol Corp., Class A		8,646,430
	167,823	ANSYS, Inc.(b)		14,676,121
	59,368	Apple, Inc.		31,010,875
	58,098	Fiserv, Inc.(b)		6,084,604
	99,429	Gartner, Inc.(b)		5,861,340
	20,196	MasterCard, Inc., Class A		14,482,552
	89,704	NetSuite, Inc.(b)		9,049,339
				95,713,729
		Materials—11.6%
	229,623	Airgas, Inc.		25,044,981
	303,392	Ball Corp.		14,832,835
	69,330	Ecolab, Inc.		7,348,980
	167,851	FMC Corp.		12,212,839

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Materials (continued)
	66,330	International Flavors & Fragrances, Inc.	$	5,482,174
	131,346	International Paper Co.		5,859,345
	22,098	NewMarket Corp.		6,880,433
	125,072	Rockwood Holdings, Inc.		7,910,804
	57,136	Sherwin-Williams Co. (The)		10,741,568
	96,321	Sigma-Aldrich Corp.		8,325,024
	181,799	W.R. Grace & Co.(b)		16,663,696
				121,302,679
		Telecommunication Services—0.7%
	252,075	T-Mobile US, Inc. (Germany)(b)		6,990,040
		Utilities—2.1%
	227,182	Aqua America, Inc.		5,720,443
	178,996	ONEOK, Inc.		10,113,274
	66,480	Sempra Energy		6,058,987
				21,892,704
		Total Common Stocks and Other Equity Interests (Cost $882,213,345)		1,046,930,851
		Money Market Fund—0.1%
	756,515	Premier Portfolio—Institutional Class(c) (Cost $756,515)		756,515
		Total Investments (Cost $882,969,860)—100.1%		1,047,687,366
		Other assets less liabilities—(0.1)%		(937,522	)
		Net Assets—100.0%	$	1,046,749,844

Investment Abbreviations:

REIT—Real Estate Investment Trust

Notes to Schedule of Investments:

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

^(b)  Non-income producing security.

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

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

10

Portfolio Composition

PowerShares Global Listed Private Equity Portfolio (PSP)

Industry Breakdown (% of the Fund’s Net Assets) as of October 31, 2013 (Unaudited)
Capital Markets	52.5
Diversified Financial Services	26.3
Machinery	4.3
Metals & Mining	2.9
Industrial Conglomerates	1.8
Money Market Fund Plus Other Assets Less Liabilities	12.2

Schedule of Investments^(a)

PowerShares Global Listed Private Equity Portfolio (PSP)

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—87.8%
		Capital Markets—52.5%
	3,026,881	3i Group PLC (United Kingdom)	$	18,143,818
	129,434	Alaris Royalty Corp. (Canada)		4,416,035
	250,903	Altamir (France)		3,428,079
	752,672	American Capital Ltd.(b)		10,544,935
	431,913	Apollo Global Management LLC, Class A		13,933,513
	682,659	Apollo Investment Corp.		5,823,081
	697,994	Ares Capital Corp.		12,124,156
	138,451	Aurelius AG (Germany)		4,731,952
	303,041	BlackRock Kelso Capital Corp.		2,845,555
	2,083,859	Brait SE (South Africa)(b)		10,184,469
	623,437	Bure Equity AB (Sweden)		2,418,196
	68,067	Capital Southwest Corp.		2,237,362
	352,492	Carlyle Group LP (The)		10,899,053
	1,311,397	DeA Capital SpA (Italy)(b)		2,495,980
	94,682	Deutsche Beteiligungs AG (Germany)		2,492,021
	434,223	Fifth Street Finance Corp.		4,429,075
	110,577	Gimv NV (Belgium)		5,607,284
	168,157	Golub Capital BDC, Inc.		2,959,563
	1,166,598	GP Investments Ltd. (Brazil)(b)		2,109,305
	221,749	Hercules Technology Growth Capital, Inc.		3,423,805
	135,767	ICG Group, Inc.(b)		2,214,360
	1,820,312	Intermediate Capital Group PLC (United Kingdom)		14,023,052
	1,320,597	IP Group PLC (United Kingdom)(b)		3,118,859
	250,960	JAFCO Co. Ltd. (Japan)		12,533,931
	148,824	Main Street Capital Corp.		4,524,250
	354,322	MCG Capital Corp.		1,668,857
	180,579	Medley Capital Corp.		2,517,271
	134,930	MVC Capital, Inc.		1,866,082
	167,539	New Mountain Finance Corp.		2,375,703
	80,862	Partners Group Holding AG (Switzerland)		20,993,491
	274,128	PennantPark Investment Corp.		3,086,681
	515,486	Princess Private Equity Holding Ltd. (Switzerland)		4,702,387

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Capital Markets (continued)
	681,701	Prospect Capital Corp.	$	7,730,489
	1,593,320	Ratos AB, Class B (Sweden)		13,825,410
	131,819	Safeguard Scientifics, Inc.(b)		2,300,242
	151,677	Solar Capital Ltd.		3,480,987
	1,218,653	SVG Capital PLC (United Kingdom)(b)		7,819,810
	4,399,748	Symphony International Holdings Ltd. (Singapore)(b)		3,321,810
	226,441	TICC Capital Corp.		2,264,410
	105,956	Triangle Capital Corp.		3,153,251
				242,768,570
		Diversified Financial Services—26.3%
	88,861	Ackermans & van Haaren NV (Belgium)		9,639,147
	1,352,484	Better Capital PCC Ltd. (United Kingdom)(b)		3,367,999
	1,568,000	China Merchants China Direct Investments Ltd. (China)		2,151,865
	174,568	Compass Diversified Holdings		3,348,214
	185,362	Electra Private Equity PLC (United Kingdom)(b)		6,775,014
	216,699	Eurazeo (France)		16,418,176
	92,257	Hal Trust (Netherlands)		12,855,890
	239,247	HgCapital Trust PLC (United Kingdom)		4,266,557
	353,754	JZ Capital Partners Ltd. (Guernsey)		2,500,703
	649,665	Leucadia National Corp.		18,411,506
	431,759	Onex Corp. (Canada)		22,808,269
	97,300	PICO Holdings, Inc.(b)		2,284,604
	121,546	Wendel (France)		16,986,845
				121,814,789
		Industrial Conglomerates—1.8%
	340,228	Hosken Consolidated Investments Ltd. (South Africa)		5,015,604

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

11

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

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrial Conglomerates (continued)
	90,998	Schouw & Co. (Denmark)	$	3,408,538
				8,424,142
		Machinery—4.3%
	3,863,500	Melrose Industries PLC (United Kingdom)		19,875,146
		Metals & Mining—2.9%
	13,801,000	Fosun International Ltd. (China)		13,261,549
		Total Common Stocks and Other Equity Interests (Cost $320,618,550)		406,144,196
		Money Market Fund—9.2%
	42,799,439	Premier Portfolio—Institutional Class(c) (Cost $42,799,439)		42,799,439
		Total Investments (Cost $363,417,989)—97.0%		448,943,635
		Other assets less liabilities—3.0%		13,804,531
		Net Assets—100.0%	$	462,748,166

Notes to Schedule of Investments:

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

^(b)  Non-income producing security.

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

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

United Kingdom 16.7 % 

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

12

Portfolio Composition

PowerShares Golden Dragon China Portfolio (PGJ)

Sector Breakdown (% of the Fund’s Net Assets) as of October 31, 2013 (Unaudited)
Information Technology	55.7
Consumer Discretionary	19.0
Health Care	7.9
Energy	5.6
Telecommunication Services	4.9
Industrials	2.8
Financials	2.7
Materials	1.1
Utilities	0.3
Money Market Funds Plus Other Assets Less Liabilities	0.0

Schedule of Investments

PowerShares Golden Dragon China Portfolio (PGJ)

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		British Virgin Islands—0.4%
	259,275	Shanda Games Ltd. ADR(a)	$	1,145,996
		Canada—2.2%
	203,951	Canadian Solar, Inc.(a)		4,690,873
	693,007	Silvercorp Metals, Inc.		2,196,832
				6,887,705
		China—94.9%
	163,069	21Vianet Group, Inc. ADR(a)		2,935,242
	46,173	51job, Inc. ADR(a)(b)		3,536,852
	109,630	AutoNavi Holdings Ltd. ADR(a)(b)		1,694,880
	159,324	Baidu, Inc. ADR(a)		25,635,232
	65,501	Bitauto Holdings Ltd. ADR(a)		1,605,429
	49,447	Changyou.com Ltd. ADR(a)(b)		1,372,649
	114,193	China Automotive Systems, Inc.(a)(b)		782,222
	109,365	China Biologic Products, Inc.(a)		3,128,933
	42,503	China Life Insurance Co. Ltd. ADR		1,675,893
	101,008	China Lodging Group Ltd. ADR(a)		2,220,156
	271,151	China Ming Yang Wind Power Group Ltd. ADR(a)(b)		672,454
	200,054	China Mobile Ltd. ADR(b)		10,406,809
	51,236	China Petroleum & Chemical Corp. ADR		4,117,837
	25,774	China Telecom Corp. Ltd. ADR		1,332,000
	194,326	China Unicom (Hong Kong) Ltd. ADR		3,031,486
	142,628	CNinsure, Inc. ADR(a)		691,746
	35,167	CNOOC Ltd. ADR		7,114,636
	469,234	Ctrip.com International Ltd. ADR(a)(b)		25,455,944
	223,717	E-Commerce China Dangdang, Inc., Class A ADR(a)(b)		1,979,895

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		China (continued)
	252,876	E-House China Holdings Ltd. ADR	$	2,344,161
	616,149	Giant Interactive Group, Inc. ADR(b)		5,452,919
	227,227	Hollysys Automation Technologies Ltd.(a)		3,810,597
	138,719	Home Inns & Hotels Management, Inc. ADR(a)(b)		4,832,970
	23,981	Huaneng Power International, Inc. ADR		991,375
	186,451	iSoftStone Holdings Ltd. ADR(a)		924,797
	115,994	JA Solar Holdings Co. Ltd. ADR(a)(b)		1,118,182
	42,866	JinkoSolar Holding Co. Ltd. ADR(a)(b)		965,342
	96,840	KongZhong Corp. ADR(a)		798,930
	339,661	LDK Solar Co. Ltd. ADR(a)(b)		458,542
	121,052	Lihua International, Inc.(a)		703,312
	277,635	Mindray Medical International Ltd. ADR(b)		10,441,852
	181,811	Nam Tai Electronics, Inc.(b)		1,270,859
	276,024	NetEase, Inc. ADR(b)		18,634,380
	508,774	New Oriental Education & Technology Group, Inc. ADR		13,334,967
	59,854	Noah Holdings Ltd. ADR(b)		1,154,584
	116,553	NQ Mobile, Inc. ADR(a)(b)		1,678,363
	308,517	Pactera Technology International Ltd. ADR(a)(b)		2,178,130
	175,640	Perfect World Co. Ltd. ADR		3,078,969
	47,649	PetroChina Co. Ltd. ADR(b)		5,397,202
	125,763	Phoenix New Media Ltd. ADR(a)		1,129,352
	277,159	Qihoo 360 Technology Co. Ltd. ADR(a)		22,904,420
	98,696	RDA Microelectronics, Inc. ADR		1,465,636
	266,884	ReneSola Ltd. ADR(a)(b)		1,160,945
	459,147	Renren, Inc. ADR(a)		1,519,777

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

13

PowerShares Golden Dragon China Portfolio (PGJ) (continued)

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		China (continued)
	121,211	Semiconductor Manufacturing International Corp. ADR(a)	$	443,632
	249,796	SINA Corp.(a)(b)		20,872,954
	26,179	Sino Clean Energy, Inc. CVR(a)		0
	223,552	Sinovac Biotech Ltd.(a)(b)		1,231,772
	155,392	Sohu.com, Inc.(a)		10,405,048
	102,706	SouFun Holdings Ltd. ADR		5,467,040
	542,012	Suntech Power Holdings Co. Ltd. ADR(a)(b)		747,977
	138,682	TAL Education Group ADR		2,661,308
	300,640	Trina Solar Ltd. ADR(a)(b)		4,410,389
	82,045	Vipshop Holdings Ltd. ADR(a)(b)		5,655,362
	276,238	WuXi PharmaTech Cayman, Inc. ADR(a)		8,079,961
	179,306	Xinyuan Real Estate Co. Ltd. ADR		1,176,247
	42,128	Yanzhou Coal Mining Co. Ltd. ADR(b)		431,812
	418,806	Yingli Green Energy Holding Co. Ltd. ADR(a)(b)		2,512,836
	205,664	Yongye International, Inc.(a)		1,295,683
	443,126	Youku Tudou, Inc. ADR(a)(b)		12,070,752
	76,794	YY, Inc. ADR(a)(b)		3,775,961
				288,379,592
		South Korea—0.3%
	196,745	Hanwha SolarOne Co. Ltd. ADR(a)(b)		853,873
		United States—2.2%
	182,802	China HGS Real Estate, Inc.(a)(b)		1,069,392
	151,220	China Yuchai International Ltd.		3,534,011
	65,178	Chindex International, Inc.(a)		1,096,946
	150,021	Kandi Technologies Group, Inc.(a)(b)		982,638
				6,682,987
		Total Common Stocks and Other Equity Interests (Cost $244,530,519)		303,950,153
		Money Market Fund—0.1%
	281,838	Premier Portfolio—Institutional Class(c) (Cost $281,838)		281,838
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $244,812,357)—100.1%		304,231,991
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—16.6%
	50,352,612	Invesco Liquid Assets Portfolio—Institutional Class (Cost $50,352,612)(c)(d)		50,352,612
		Total Investments (Cost $295,164,969)—116.7%		354,584,603
		Other assets less liabilities—(16.7)%		(50,604,082	)
		Net Assets—100.0%	$	303,980,521

Investment Abbreviations:

ADR—American Depositary Receipt

Notes to Schedule of Investments:

^(a)  Non-income producing security.

^(b)  All or a portion of this security was out on loan at October 31, 2013.

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

^(d)  The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2I.

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

14

Portfolio Composition

PowerShares Lux Nanotech Portfolio (PXN)

Industry Breakdown (% of the Fund’s Net Assets) as of October 31, 2013 (Unaudited)
Semiconductors & Semiconductor Equipment	15.0
Electronic Equipment, Instruments & Components	13.3
Biotechnology	11.7
Electrical Equipment	8.2
Chemicals	7.6
Communications Equipment	6.0
Auto Components	5.6
Industrial Conglomerates	5.2
Pharmaceuticals	5.1
Computers & Peripherals	2.8
Health Care Equipment & Supplies	2.8
Capital Markets	2.7
Construction & Engineering	2.6
Construction Materials	2.5
Software	2.5
Automobiles	2.5
IT Services	2.3
Life Sciences Tools & Services	1.6
Money Market Funds Plus Other Assets Less Liabilities	0.0

Schedule of Investments^(a)

PowerShares Lux Nanotech Portfolio (PXN)

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Auto Components—5.6%
	352,692	Ballard Power Systems, Inc. (Canada)(b)(c)	$	483,188
	28,032	Gentherm, Inc.(c)		654,547
				1,137,735
		Automobiles—2.5%
	3,858	Toyota Motor Corp. ADR (Japan)		499,302
		Biotechnology—11.7%
	103,178	Arrowhead Research Corp.(b)(c)		722,246
	34,702	Elan Corp. PLC ADR (Ireland)(c)		578,135
	276,727	Nanosphere, Inc.(c)		539,618
	424,896	Vical, Inc.(c)		531,120
				2,371,119

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Capital Markets—2.7%
	175,771	Harris & Harris Group, Inc.(c)	$	550,163
		Chemicals—7.6%
	4,698	Air Products & Chemicals, Inc.		512,129
	8,490	E.I. du Pont de Nemours & Co.		519,588
	8,102	Rockwood Holdings, Inc.		512,451
				1,544,168
		Communications Equipment—6.0%
	121,263	EMCORE Corp.(b)(c)		646,332
	9,301	Harris Corp.		576,290
				1,222,622

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

15

PowerShares Lux Nanotech Portfolio (PXN) (continued)

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Computers & Peripherals—2.8%
	23,712	Hewlett-Packard Co.	$	577,861
		Construction & Engineering—2.6%
	27,144	Layne Christensen Co.(c)		524,965
		Construction Materials—2.5%
	59,364	Headwaters, Inc.(c)		518,248
		Electrical Equipment—8.2%
	224,841	American Superconductor Corp.(b)(c)		490,154
	47,838	Hydrogenics Corp. (Canada)(b)(c)		584,102
	13,101	Polypore International, Inc.(b)(c)		592,165
				1,666,421
		Electronic Equipment, Instruments & Components—13.3%
	6,148	FEI Co.		547,664
	56,802	Maxwell Technologies, Inc.(c)		426,015
	129,095	Research Frontiers, Inc.(b)(c)		622,238
	33,726	Uni-Pixel, Inc.(b)(c)		554,793
	17,104	Universal Display Corp.(c)		545,617
				2,696,327
		Health Care Equipment & Supplies—2.8%
	23,845	SurModics, Inc.(c)		562,265
		Industrial Conglomerates—5.2%
	4,169	3M Co.		524,669
	20,709	General Electric Co.		541,333
				1,066,002
		IT Services—2.3%
	2,651	International Business Machines Corp.		475,086
		Life Sciences Tools & Services—1.6%
	133,239	pSivida Corp. (Australia)(b)(c)		326,436
		Pharmaceuticals—5.1%
	99,745	BioDelivery Sciences International, Inc.(c)		523,661
	83,275	Flamel Technologies SA ADR (France)(c)		514,640
				1,038,301
		Semiconductors & Semiconductor Equipment—15.0%
	31,228	Aixtron SE ADR (Germany)(b)(c)		446,560
	28,879	Applied Materials, Inc.(b)		515,490
	21,260	Intel Corp.(b)		519,382
	16,766	Maxim Integrated Products, Inc.		497,950
	33,600	Nanometrics, Inc.(c)		624,288
	15,136	Veeco Instruments, Inc.(c)		442,123
				3,045,793
		Software—2.5%
	54,233	Accelrys, Inc.(c)		507,079
		Total Common Stocks and Other Equity Interests (Cost $20,194,056)		20,329,893
		Money Market Fund—0.4%
	76,236	Premier Portfolio—Institutional Class(d) (Cost $76,236)		76,236
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $20,270,292)—100.4%		20,406,129

Number of Shares			Value
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—17.1%
	3,483,775	Invesco Liquid Assets Portfolio—Institutional Class (Cost $3,483,775)(d)(e)	$	3,483,775
		Total Investments (Cost $23,754,067)—117.5%		23,889,904
		Other assets less liabilities—(17.5)%		(3,555,177	)
		Net Assets—100.0%	$	20,334,727

Investment Abbreviations:

ADR—American Depositary Receipt

Notes to Schedule of Investments:

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

^(b)  All or a portion of this security was out on loan at October 31, 2013.

^(c)  Non-income producing security.

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

^(e)  The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2I.

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

16

Portfolio Composition

PowerShares S&P 500 BuyWrite Portfolio (PBP)

Sector Breakdown (% of the Fund’s Net Assets) as of October 31, 2013 (Unaudited)
Information Technology	18.0
Financials	16.3
Health Care	13.2
Consumer Discretionary	12.7
Industrials	10.9
Energy	10.7
Consumer Staples	10.3
Materials	3.6
Utilities	3.2
Telecommunication Services	2.5
Other Assets Less Liabilities	(1.4)

Schedule of Investments^(a)

PowerShares S&P 500 BuyWrite Portfolio (PBP)

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests(b)—101.4%
		Consumer Discretionary—12.7%
	998	Abercrombie & Fitch Co., Class A	$	37,405
	4,350	Amazon.com, Inc.(c)		1,583,530
	856	AutoNation, Inc.(c)		41,285
	418	AutoZone, Inc.(c)		181,700
	2,560	Bed Bath & Beyond, Inc.(c)		197,939
	3,171	Best Buy Co., Inc.		135,719
	1,346	BorgWarner, Inc.		138,813
	2,515	Cablevision Systems Corp., Class A		39,108
	2,628	CarMax, Inc.(c)		123,490
	5,146	Carnival Corp.		178,309
	6,612	CBS Corp., Class B		391,034
	363	Chipotle Mexican Grill, Inc.(c)		191,290
	3,314	Coach, Inc.		167,953
	30,744	Comcast Corp., Class A		1,462,799
	3,339	D.R. Horton, Inc.		63,274
	1,532	Darden Restaurants, Inc.		78,944
	3,318	Delphi Automotive PLC (United Kingdom)		189,790
	6,002	DIRECTV(c)		375,065
	2,714	Discovery Communications, Inc., Class A(c)		241,329
	3,500	Dollar General Corp.(c)		202,230
	2,621	Dollar Tree, Inc.(c)		153,066
	1,263	Expedia, Inc.		74,365
	1,135	Family Dollar Stores, Inc.		78,179
	46,309	Ford Motor Co.		792,347
	591	Fossil Group, Inc.(c)		75,022
	1,374	GameStop Corp., Class A		75,323
	2,693	Gannett Co., Inc.		74,515

Number of Shares			Value
		Common Stocks and Other Equity Interests(b) (continued)
		Consumer Discretionary (continued)
	3,242	Gap, Inc. (The)	$	119,922
	1,446	Garmin Ltd.		67,600
	11,064	General Motors Co.(c)		408,815
	1,820	Genuine Parts Co.		143,471
	2,891	Goodyear Tire & Rubber Co. (The)		60,653
	3,219	H&R Block, Inc.		91,548
	2,622	Harley-Davidson, Inc.		167,913
	800	Harman International Industries, Inc.		64,816
	1,357	Hasbro, Inc.		70,089
	16,838	Home Depot, Inc. (The)		1,311,512
	3,066	International Game Technology		57,641
	4,962	Interpublic Group of Cos., Inc. (The)		83,362
	3,580	J.C. Penney Co., Inc.(c)		26,850
	8,042	Johnson Controls, Inc.		371,138
	2,400	Kohl’s Corp.		136,320
	2,863	L Brands, Inc.		179,252
	1,669	Leggett & Platt, Inc.		49,636
	1,951	Lennar Corp., Class A		69,358
	12,363	Lowe’s Cos., Inc.		615,430
	4,423	Macy’s, Inc.		203,944
	2,673	Marriott International, Inc., Class A		120,499
	4,050	Mattel, Inc.		179,698
	11,750	McDonald’s Corp.		1,134,110
	693	Netflix, Inc.(c)		223,479
	3,385	Newell Rubbermaid, Inc.		100,298
	5,853	News Corp., Class A(c)		103,013
	8,791	NIKE, Inc., Class B		666,006

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

17

PowerShares S&P 500 BuyWrite Portfolio (PBP) (continued)

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests(b) (continued)
		Consumer Discretionary (continued)
	1,695	Nordstrom, Inc.	$	102,497
	3,023	Omnicom Group, Inc.		205,896
	1,276	O’Reilly Automotive, Inc.(c)		157,982
	1,221	PetSmart, Inc.		88,840
	605	Priceline.com, Inc.(c)		637,567
	4,108	PulteGroup, Inc.		72,506
	959	PVH Corp.		119,463
	712	Ralph Lauren Corp.		117,936
	2,547	Ross Stores, Inc.		197,010
	1,286	Scripps Networks Interactive, Inc., Class A		103,523
	7,764	Staples, Inc.		125,156
	8,832	Starbucks Corp.		715,834
	2,291	Starwood Hotels & Resorts Worldwide, Inc.		168,663
	7,419	Target Corp.		480,677
	1,293	Tiffany & Co.		102,367
	3,359	Time Warner Cable, Inc.		403,584
	10,814	Time Warner, Inc.		743,354
	8,407	TJX Cos., Inc. (The)		511,062
	1,311	TripAdvisor, Inc.(c)		108,433
	23,347	Twenty-First Century Fox, Inc.		795,666
	1,282	Urban Outfitters, Inc.(c)		48,562
	1,034	VF Corp.		222,310
	5,102	Viacom, Inc., Class B		424,946
	19,529	Walt Disney Co. (The)		1,339,494
	56	Washington Post Co. (The), Class B		36,026
	932	Whirlpool Corp.		136,081
	1,563	Wyndham Worldwide Corp.		103,783
	951	Wynn Resorts Ltd.		158,104
	5,245	Yum! Brands, Inc.		354,667
				22,952,185
		Consumer Staples—10.3%
	23,561	Altria Group, Inc.		877,176
	7,748	Archer-Daniels-Midland Co.		316,893
	5,097	Avon Products, Inc.		89,197
	1,903	Beam, Inc.		128,072
	1,910	Brown-Forman Corp., Class B		139,392
	2,098	Campbell Soup Co.		89,312
	1,533	Clorox Co. (The)		138,261
	44,815	Coca-Cola Co. (The)		1,773,330
	2,923	Coca-Cola Enterprises, Inc.		121,977
	10,359	Colgate-Palmolive Co.		670,538
	4,961	ConAgra Foods, Inc.		157,809
	1,949	Constellation Brands, Inc., Class A(c)		127,270
	5,133	Costco Wholesale Corp.		605,694
	14,439	CVS Caremark Corp.		898,972
	2,393	Dr Pepper Snapple Group, Inc.		113,309
	3,006	Estee Lauder Cos., Inc. (The), Class A		213,306
	7,544	General Mills, Inc.		380,368
	1,758	Hershey Co. (The)		174,464
	1,582	Hormel Foods Corp.		68,754
	1,236	J.M. Smucker Co. (The)		137,456
	3,025	Kellogg Co.		191,331
	4,503	Kimberly-Clark Corp.		486,324
	7,001	Kraft Foods Group, Inc.		380,714
	6,092	Kroger Co. (The)		260,981

Number of Shares			Value
		Common Stocks and Other Equity Interests(b) (continued)
		Consumer Staples (continued)
	4,395	Lorillard, Inc.	$	224,189
	1,551	McCormick & Co., Inc.,		107,252
	2,379	Mead Johnson Nutrition Co.		194,269
	1,854	Molson Coors Brewing Co., Class B		100,116
	20,931	Mondelez International, Inc., Class A		704,119
	1,594	Monster Beverage Corp.(c)		91,225
	18,128	PepsiCo, Inc.		1,524,383
	19,025	Philip Morris International, Inc.		1,695,508
	32,193	Procter & Gamble Co. (The)		2,599,585
	3,721	Reynolds American, Inc.		191,148
	2,836	Safeway, Inc.		98,976
	6,916	Sysco Corp.		223,663
	3,271	Tyson Foods, Inc., Class A		90,509
	10,220	Walgreen Co.		605,433
	19,133	Wal-Mart Stores, Inc.		1,468,458
	4,379	Whole Foods Market, Inc.		276,446
				18,736,179
		Energy—10.7%
	5,909	Anadarko Petroleum Corp.		563,069
	4,747	Apache Corp.		421,533
	5,208	Baker Hughes, Inc.		302,533
	4,945	Cabot Oil & Gas Corp.		174,657
	2,893	Cameron International Corp.(c)		158,710
	5,955	Chesapeake Energy Corp.		166,502
	22,710	Chevron Corp.		2,724,291
	14,376	ConocoPhillips		1,053,761
	2,690	CONSOL Energy, Inc.		98,185
	4,383	Denbury Resources, Inc.(c)		83,233
	4,486	Devon Energy Corp.		283,605
	817	Diamond Offshore Drilling, Inc.		50,597
	2,746	Ensco PLC, Class A		158,307
	3,202	EOG Resources, Inc.		571,237
	1,770	EQT Corp.		151,530
	51,740	Exxon Mobil Corp.		4,636,939
	2,785	FMC Technologies, Inc.(c)		140,782
	9,940	Halliburton Co.		527,118
	1,252	Helmerich & Payne, Inc.		97,093
	3,391	Hess Corp.		275,349
	7,914	Kinder Morgan, Inc.		279,443
	8,342	Marathon Oil Corp.		294,139
	3,680	Marathon Petroleum Corp.		263,709
	2,065	Murphy Oil Corp.		124,561
	3,052	Nabors Industries Ltd.		53,349
	5,025	National Oilwell Varco, Inc.		407,929
	1,595	Newfield Exploration Co.(c)		48,568
	2,978	Noble Corp.		112,271
	4,222	Noble Energy, Inc.		316,354
	9,471	Occidental Petroleum Corp.		909,974
	3,172	Peabody Energy Corp.		61,790
	7,182	Phillips 66		462,736
	1,629	Pioneer Natural Resources Co.		333,587
	2,107	QEP Resources, Inc.		69,657
	1,921	Range Resources Corp.		145,439
	1,460	Rowan Cos. PLC, Class A(c)		52,677
	15,554	Schlumberger Ltd.		1,457,721

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

18

PowerShares S&P 500 BuyWrite Portfolio (PBP) (continued)

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests(b) (continued)
		Energy (continued)
	4,132	Southwestern Energy Co.(c)	$	153,793
	7,868	Spectra Energy Corp.		279,865
	1,588	Tesoro Corp.		77,637
	3,982	Transocean Ltd.		187,433
	6,373	Valero Energy Corp.		262,376
	8,031	Williams Cos., Inc. (The)		286,787
	2,358	WPX Energy, Inc.(c)		52,206
				19,333,032
		Financials—16.3%
	3,998	ACE Ltd.		381,569
	5,467	Aflac, Inc.		355,246
	5,448	Allstate Corp. (The)		289,071
	10,906	American Express Co.		892,111
	17,354	American International Group, Inc.		896,334
	4,643	American Tower Corp. REIT		368,422
	2,326	Ameriprise Financial, Inc.		233,856
	3,614	Aon PLC (United Kingdom)		285,831
	1,715	Apartment Investment & Management Co., Class A REIT		47,986
	881	Assurant, Inc.		51,521
	1,430	AvalonBay Communities, Inc. REIT		178,821
	126,282	Bank of America Corp.		1,762,897
	13,523	Bank of New York Mellon Corp. (The)		430,031
	8,274	BB&T Corp.		281,068
	21,157	Berkshire Hathaway, Inc., Class B(c)		2,434,748
	1,480	BlackRock, Inc.		445,199
	1,791	Boston Properties, Inc. REIT		185,368
	6,880	Capital One Financial Corp.		472,450
	3,259	CBRE Group, Inc., Class A(c)		75,707
	13,593	Charles Schwab Corp. (The)		307,881
	3,003	Chubb Corp. (The)		276,516
	1,731	Cincinnati Financial Corp.		86,550
	35,746	Citigroup, Inc.		1,743,690
	3,694	CME Group, Inc.		274,132
	2,174	Comerica, Inc.		94,134
	5,687	Discover Financial Services		295,042
	3,374	E*TRADE Financial Corp.(c)		57,054
	3,939	Equity Residential REIT		206,246
	10,426	Fifth Third Bancorp		198,407
	4,779	Franklin Resources, Inc.		257,397
	5,804	Genworth Financial, Inc., Class A(c)		84,332
	4,910	Goldman Sachs Group, Inc. (The)		789,823
	5,349	Hartford Financial Services Group, Inc. (The)		180,261
	5,350	HCP, Inc. REIT		222,025
	3,371	Health Care REIT, Inc.		218,609
	8,816	Host Hotels & Resorts, Inc. REIT		163,537
	5,588	Hudson City Bancorp, Inc.		50,180
	9,753	Huntington Bancshares, Inc.		85,826
	856	IntercontinentalExchange, Inc.(c)		164,977
	5,205	Invesco Ltd.(d)		175,669
	44,247	JPMorgan Chase & Co.		2,280,490
	10,713	KeyCorp		134,234
	4,815	Kimco Realty Corp. REIT		103,426
	1,276	Legg Mason, Inc.		49,088
	3,684	Leucadia National Corp.		104,405

Number of Shares			Value
		Common Stocks and Other Equity Interests(b) (continued)
		Financials (continued)
	3,109	Lincoln National Corp.	$	141,180
	3,597	Loews Corp.		173,771
	1,529	M&T Bank Corp.		172,058
	1,652	Macerich Co. (The) REIT		97,815
	6,460	Marsh & McLennan Cos., Inc.		295,868
	3,235	McGraw Hill Financial, Inc.		225,415
	13,163	MetLife, Inc.		622,742
	2,280	Moody’s Corp.		161,105
	16,346	Morgan Stanley		469,621
	1,357	NASDAQ OMX Group, Inc. (The)		48,078
	2,653	Northern Trust Corp.		149,682
	2,856	NYSE Euronext		125,721
	3,775	People’s United Financial, Inc.		54,473
	1,916	Plum Creek Timber Co., Inc. REIT		86,986
	6,248	PNC Financial Services Group, Inc.		459,415
	3,218	Principal Financial Group, Inc.		152,726
	6,502	Progressive Corp. (The)		168,857
	5,861	Prologis, Inc. REIT		234,147
	5,466	Prudential Financial, Inc.		444,878
	1,698	Public Storage REIT		283,515
	16,408	Regions Financial Corp.		158,009
	3,648	Simon Property Group, Inc. REIT		563,798
	5,127	SLM Corp.		130,072
	5,242	State Street Corp.		367,307
	6,335	SunTrust Banks, Inc.		213,109
	3,058	T. Rowe Price Group, Inc.		236,720
	1,077	Torchmark Corp.		78,470
	4,390	Travelers Cos., Inc. (The)		378,857
	21,620	U.S. Bancorp		807,723
	3,098	Unum Group		98,331
	3,447	Ventas, Inc. REIT		224,882
	2,044	Vornado Realty Trust REIT		182,039
	56,797	Wells Fargo & Co.		2,424,664
	6,865	Weyerhaeuser Co. REIT		208,696
	3,364	XL Group PLC		102,837
	2,169	Zions Bancorp.		61,535
				29,477,269
		Health Care—13.2%
	18,268	Abbott Laboratories		667,695
	18,636	AbbVie, Inc.		902,914
	2,038	Actavis PLC(c)		315,034
	4,374	Aetna, Inc.		274,250
	3,888	Agilent Technologies, Inc.		197,355
	2,299	Alexion Pharmaceuticals, Inc.(c)		282,662
	3,489	Allergan, Inc.		316,138
	2,715	AmerisourceBergen Corp.		177,371
	8,855	Amgen, Inc.		1,027,180
	6,380	Baxter International, Inc.		420,251
	2,283	Becton, Dickinson and Co.		240,012
	2,794	Biogen Idec, Inc.(c)		682,267
	15,785	Boston Scientific Corp.(c)		184,527
	19,352	Bristol-Myers Squibb Co.		1,016,367
	930	C.R. Bard, Inc.		126,685
	3,990	Cardinal Health, Inc.		234,053
	2,520	CareFusion Corp.(c)		97,700

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

19

PowerShares S&P 500 BuyWrite Portfolio (PBP) (continued)

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests(b) (continued)
		Health Care (continued)
	4,834	Celgene Corp.(c)	$	717,801
	3,468	Cerner Corp.(c)		194,312
	3,325	Cigna Corp.		255,958
	5,407	Covidien PLC		346,643
	2,074	DaVita HealthCare Partners, Inc.(c)		116,579
	1,673	DENTSPLY International, Inc.		78,798
	1,320	Edwards Lifesciences Corp.(c)		86,051
	11,654	Eli Lilly & Co.		580,602
	9,571	Express Scripts Holding Co.(c)		598,379
	2,777	Forest Laboratories, Inc.(c)		130,602
	17,992	Gilead Sciences, Inc.(c)		1,277,252
	1,947	Hospira, Inc.(c)		78,892
	1,839	Humana, Inc.		169,464
	467	Intuitive Surgical, Inc.(c)		173,490
	33,125	Johnson & Johnson		3,067,706
	1,059	Laboratory Corp. of America Holdings(c)		106,853
	2,030	Life Technologies Corp.(c)		152,879
	2,687	McKesson Corp.		420,086
	11,725	Medtronic, Inc.		673,015
	34,399	Merck & Co., Inc.		1,551,051
	4,488	Mylan, Inc.(c)		169,961
	1,078	Patterson Cos., Inc.		45,826
	1,317	PerkinElmer, Inc.		50,099
	1,106	Perrigo Co.		152,506
	77,819	Pfizer, Inc.		2,387,487
	1,785	Quest Diagnostics, Inc.		106,939
	917	Regeneron Pharmaceuticals, Inc.(c)		263,729
	3,376	St. Jude Medical, Inc.		193,749
	3,467	Stryker Corp.		256,073
	1,194	Tenet Healthcare Corp.(c)		56,345
	4,238	Thermo Fisher Scientific, Inc.		414,392
	11,951	UnitedHealth Group, Inc.		815,775
	1,265	Varian Medical Systems, Inc.(c)		91,814
	2,737	Vertex Pharmaceuticals, Inc.(c)		195,258
	1,002	Waters Corp.(c)		101,122
	3,514	WellPoint, Inc.		297,987
	1,993	Zimmer Holdings, Inc.		174,328
	5,877	Zoetis, Inc.		186,066
				23,898,330
		Industrials—10.9%
	7,632	3M Co.		960,487
	2,351	ADT Corp. (The)		101,963
	2,871	AMETEK, Inc.		137,320
	8,159	Boeing Co. (The)		1,064,749
	1,874	C.H. Robinson Worldwide, Inc.		111,953
	7,478	Caterpillar, Inc.		623,366
	1,208	Cintas Corp.		64,954
	11,976	CSX Corp.		312,095
	2,047	Cummins, Inc.		260,010
	7,032	Danaher Corp.		506,937
	4,500	Deere & Co.		368,280
	10,085	Delta Air Lines, Inc.		266,042
	2,006	Dover Corp.		184,131
	456	Dun & Bradstreet Corp. (The)		49,608
	5,571	Eaton Corp. PLC		393,090

Number of Shares			Value
		Common Stocks and Other Equity Interests(b) (continued)
		Industrials (continued)
	8,399	Emerson Electric Co.	$	562,481
	1,426	Equifax, Inc.		92,219
	2,426	Expeditors International of Washington, Inc.		109,874
	3,210	Fastenal Co.		159,858
	3,493	FedEx Corp.		457,583
	1,653	Flowserve Corp.		114,834
	1,916	Fluor Corp.		142,206
	3,907	General Dynamics Corp.		338,463
	119,707	General Electric Co.		3,129,141
	9,226	Honeywell International, Inc.		800,171
	4,843	Illinois Tool Works, Inc.		381,580
	3,181	Ingersoll-Rand PLC		214,813
	1,999	Iron Mountain, Inc.		53,053
	1,545	Jacobs Engineering Group, Inc.(c)		93,967
	1,249	Joy Global, Inc.		70,881
	1,296	Kansas City Southern		157,490
	1,053	L-3 Communications Holdings, Inc.		105,774
	3,169	Lockheed Martin Corp.		422,554
	4,196	Masco Corp.		88,661
	2,527	Nielsen Holdings NV		99,665
	3,667	Norfolk Southern Corp.		315,435
	2,706	Northrop Grumman Corp.		290,922
	4,161	PACCAR, Inc.		231,352
	1,315	Pall Corp.		105,884
	1,754	Parker Hannifin Corp.		204,727
	2,341	Pentair Ltd.		157,058
	2,372	Pitney Bowes, Inc.		50,618
	1,711	Precision Castparts Corp.		433,653
	2,512	Quanta Services, Inc.(c)		75,888
	3,791	Raytheon Co.		312,265
	3,192	Republic Services, Inc.		106,836
	1,632	Robert Half International, Inc.		62,881
	1,630	Rockwell Automation, Inc.		179,968
	1,587	Rockwell Collins, Inc.		110,820
	1,166	Roper Industries, Inc.		147,860
	715	Ryder System, Inc.		47,068
	684	Snap-On, Inc.		71,184
	8,301	Southwest Airlines Co.		142,943
	1,882	Stanley Black & Decker, Inc.		148,847
	1,010	Stericycle, Inc.(c)		117,362
	3,297	Textron, Inc.		94,921
	5,434	Tyco International Ltd.		198,613
	5,452	Union Pacific Corp.		825,433
	8,492	United Parcel Service, Inc., Class B		834,254
	9,922	United Technologies Corp.		1,054,213
	727	W.W. Grainger, Inc.		195,541
	5,125	Waste Management, Inc.		223,143
	2,178	Xylem, Inc.		75,141
				19,815,083
		Information Technology—18.0%
	7,580	Accenture PLC, Class A		557,130
	5,491	Adobe Systems, Inc.(c)		297,612
	2,094	Akamai Technologies, Inc.(c)		93,686
	3,755	Altera Corp.		126,168
	1,871	Amphenol Corp., Class A		150,223

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

20

PowerShares S&P 500 BuyWrite Portfolio (PBP) (continued)

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests(b) (continued)
		Information Technology (continued)
	3,652	Analog Devices, Inc.	$	180,044
	10,679	Apple, Inc.		5,578,176
	14,139	Applied Materials, Inc.		252,381
	2,621	Autodesk, Inc.(c)		104,604
	5,675	Automatic Data Processing, Inc.		425,455
	6,466	Broadcom Corp., Class A		172,771
	3,856	CA, Inc.		122,467
	63,023	Cisco Systems, Inc.		1,418,017
	2,203	Citrix Systems, Inc.(c)		125,086
	3,542	Cognizant Technology Solutions Corp., Class A(c)		307,906
	1,736	Computer Sciences Corp.		85,515
	17,167	Corning, Inc.		293,384
	13,695	eBay, Inc.(c)		721,863
	3,604	Electronic Arts, Inc.(c)		94,605
	24,460	EMC Corp.		588,752
	920	F5 Networks, Inc.(c)		74,989
	3,434	Fidelity National Information Services, Inc.		167,407
	915	First Solar, Inc.(c)		45,997
	1,529	Fiserv, Inc.(c)		160,132
	1,670	FLIR Systems, Inc.		47,562
	3,288	Google, Inc., Class A(c)		3,388,547
	1,257	Harris Corp.		77,884
	22,590	Hewlett-Packard Co.		550,518
	58,562	Intel Corp.		1,430,670
	12,104	International Business Machines Corp.		2,169,158
	3,490	Intuit, Inc.		249,221
	2,168	Jabil Circuit, Inc.		45,224
	2,792	JDS Uniphase Corp.(c)		36,547
	5,958	Juniper Networks, Inc.(c)		111,057
	1,948	KLA-Tencor Corp.		127,789
	1,918	Lam Research Corp.(c)		104,013
	2,741	Linear Technology Corp.		112,765
	6,431	LSI Corp.		54,535
	1,219	MasterCard, Inc., Class A		874,145
	2,319	Microchip Technology, Inc.		99,624
	12,207	Micron Technology, Inc.(c)		215,820
	89,103	Microsoft Corp.		3,149,791
	1,613	Molex, Inc.		62,262
	2,781	Motorola Solutions, Inc.		173,868
	3,998	NetApp, Inc.		155,162
	6,801	NVIDIA Corp.		103,239
	41,914	Oracle Corp.		1,404,119
	3,824	Paychex, Inc.		161,602
	20,164	QUALCOMM, Inc.		1,400,793
	2,225	Red Hat, Inc.(c)		96,276
	6,445	Salesforce.com, Inc.(c)		343,905
	2,826	SanDisk Corp.		196,407
	3,810	Seagate Technology PLC		185,471
	8,212	Symantec Corp.		186,741
	4,861	TE Connectivity Ltd. (Switzerland)		250,293
	1,917	Teradata Corp.(c)		84,482
	2,351	Teradyne, Inc.(c)		41,119
	12,944	Texas Instruments, Inc.		544,684
	1,959	Total System Services, Inc.		58,437
	1,586	Verisign, Inc.(c)		86,088

Number of Shares			Value
		Common Stocks and Other Equity Interests(b) (continued)
		Information Technology (continued)
	6,068	Visa, Inc., Class A	$	1,193,394
	2,479	Western Digital Corp.		172,613
	6,488	Western Union Co. (The)		110,426
	13,619	Xerox Corp.		135,373
	3,130	Xilinx, Inc.		142,165
	11,154	Yahoo!, Inc.(c)		367,301
				32,645,460
		Materials—3.6%
	2,464	Air Products & Chemicals, Inc.		268,601
	778	Airgas, Inc.		84,857
	12,572	Alcoa, Inc.		116,542
	1,269	Allegheny Technologies, Inc.		42,004
	1,153	Avery Dennison Corp.		54,329
	1,706	Ball Corp.		83,406
	1,210	Bemis Co., Inc.		48,279
	673	CF Industries Holdings, Inc.		145,099
	1,800	Cliffs Natural Resources, Inc.		46,224
	14,226	Dow Chemical Co. (The)		561,500
	10,855	E.I. du Pont de Nemours & Co.		664,326
	1,813	Eastman Chemical Co.		142,846
	3,188	Ecolab, Inc.		337,928
	1,603	FMC Corp.		116,634
	12,200	Freeport-McMoRan Copper & Gold, Inc.		448,472
	961	International Flavors & Fragrances, Inc.		79,427
	5,242	International Paper Co.		233,846
	5,267	LyondellBasell Industries NV, Class A		392,918
	2,087	MeadWestvaco Corp.		72,732
	6,267	Monsanto Co.		657,283
	4,004	Mosaic Co. (The)		183,583
	5,850	Newmont Mining Corp.		159,471
	3,740	Nucor Corp.		193,620
	1,932	Owens-Illinois, Inc.(c)		61,418
	1,680	PPG Industries, Inc.		306,734
	3,466	Praxair, Inc.		432,245
	2,303	Sealed Air Corp.		69,505
	1,026	Sherwin-Williams Co. (The)		192,888
	1,413	Sigma-Aldrich Corp.		122,126
	1,800	United States Steel Corp.		44,802
	1,528	Vulcan Materials Co.		81,824
				6,445,469
		Telecommunication Services—2.5%
	62,429	AT&T, Inc.		2,259,930
	7,061	CenturyLink, Inc.		239,086
	3,869	Crown Castle International Corp.(c)		294,121
	11,751	Frontier Communications Corp.		51,822
	33,638	Verizon Communications, Inc.		1,699,055
	6,968	Windstream Holdings, Inc.		59,576
				4,603,590
		Utilities—3.2%
	7,235	AES Corp. (The)		101,941
	1,394	AGL Resources, Inc.		66,717
	2,852	Ameren Corp.		103,185
	5,722	American Electric Power Co., Inc.		268,018
	5,038	CenterPoint Energy, Inc.		123,935

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

21

PowerShares S&P 500 BuyWrite Portfolio (PBP) (continued)

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests(b) (continued)
		Utilities (continued)
	3,125	CMS Energy Corp.	$	85,813
	3,443	Consolidated Edison, Inc.		200,451
	6,806	Dominion Resources, Inc.		433,883
	2,057	DTE Energy Co.		142,221
	8,298	Duke Energy Corp.		595,216
	3,830	Edison International		187,785
	2,096	Entergy Corp.		135,653
	10,069	Exelon Corp.		287,369
	4,916	FirstEnergy Corp.		186,169
	936	Integrys Energy Group, Inc.		54,924
	4,992	NextEra Energy, Inc.		423,072
	3,674	NiSource, Inc.		115,804
	3,700	Northeast Utilities		158,693
	3,796	NRG Energy, Inc.		108,300
	2,424	ONEOK, Inc.		136,956
	2,928	Pepco Holdings, Inc.		56,452
	5,234	PG&E Corp.		219,043
	1,293	Pinnacle West Capital Corp.		72,447
	7,425	PPL Corp.		227,428
	5,946	Public Service Enterprise Group, Inc.		199,191
	1,645	SCANA Corp.		76,706
	2,670	Sempra Energy		243,344
	10,272	Southern Co. (The)		420,228
	2,401	TECO Energy, Inc.		41,225
	2,676	Wisconsin Energy Corp.		112,686
	5,849	Xcel Energy, Inc.		168,802
				5,753,657
		Total Investments (Cost $142,713,742)—101.4%		183,660,254
		Other assets less liabilities—(1.4)%		(2,484,994	)
		Net Assets—100.0%	$	181,175,260

Investment Abbreviations:

REIT—Real Estate Investment Trust

Notes to Schedule of Investments:

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

^(b)  A portion of the securities in the portfolio are subject to call options written. In addition, the unrealized appreciation (depreciation) of the call options written was based on Level 1 inputs. See Note 2G and Note 6.

^(c)  Non-income producing security.

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

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

22

Portfolio Composition

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

Sector Breakdown (% of the Fund’s Net Assets) as of October 31, 2013 (Unaudited)
Industrials	26.3
Consumer Staples	19.5
Consumer Discretionary	19.4
Health Care	10.6
Materials	7.9
Financials	5.0
Utilities	4.3
Information Technology	4.3
Energy	2.7
Money Market Fund Plus Other Assets Less Liabilities	0.0

Schedule of Investments^(a)

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

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—19.4%
	24,272	Comcast Corp., Class A	$	1,154,862
	44,272	Darden Restaurants, Inc.		2,281,336
	48,148	Family Dollar Stores, Inc.		3,316,434
	30,352	Gap, Inc. (The)		1,122,720
	27,731	Genuine Parts Co.		2,186,035
	17,096	Harley-Davidson, Inc.		1,094,828
	47,860	Hasbro, Inc.		2,471,969
	29,290	Home Depot, Inc. (The)		2,281,398
	26,674	Johnson Controls, Inc.		1,231,005
	22,988	Lowe’s Cos., Inc.		1,144,343
	26,772	Mattel, Inc.		1,187,874
	23,597	McDonald’s Corp.		2,277,582
	45,734	NIKE, Inc., Class B		3,464,808
	39,334	Nordstrom, Inc.		2,378,527
	52,692	Omnicom Group, Inc.		3,588,852
	30,324	PetSmart, Inc.		2,206,374
	13,859	Ralph Lauren Corp.		2,295,605
	46,142	Ross Stores, Inc.		3,569,084
	53,098	Target Corp.		3,440,219
	14,598	Tiffany & Co.		1,155,724
	60,487	TJX Cos., Inc. (The)		3,677,005
	11,402	VF Corp.		2,451,430
	50,691	Walt Disney Co. (The)		3,476,896
	50,094	Yum! Brands, Inc.		3,387,356
				56,842,266
		Consumer Staples—19.5%
	31,449	Altria Group, Inc.		1,170,846

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Staples (continued)
	30,546	Archer-Daniels-Midland Co.	$	1,249,331
	31,836	Brown-Forman Corp., Class B		2,323,391
	27,343	Campbell Soup Co.		1,163,992
	26,513	Clorox Co. (The)		2,391,207
	88,862	Coca-Cola Co. (The)		3,516,269
	54,621	Colgate-Palmolive Co.		3,535,617
	19,280	Costco Wholesale Corp.		2,275,040
	56,341	CVS Caremark Corp.		3,507,791
	15,744	Estee Lauder Cos., Inc. (The), Class A		1,117,194
	46,238	General Mills, Inc.		2,331,320
	77,878	Hormel Foods Corp.		3,384,578
	20,975	J.M. Smucker Co. (The)		2,332,630
	55,241	Kellogg Co.		3,493,993
	23,057	Kimberly-Clark Corp.		2,490,156
	72,786	Lorillard, Inc.		3,712,814
	50,639	McCormick & Co., Inc.,		3,501,687
	27,657	PepsiCo, Inc.		2,325,677
	42,770	Procter & Gamble Co. (The)		3,453,678
	69,381	Sysco Corp.		2,243,782
	40,005	Walgreen Co.		2,369,896
	44,856	Wal-Mart Stores, Inc.		3,442,698
				57,333,587
		Energy—2.7%
	28,525	Chevron Corp.		3,421,859
	38,599	Exxon Mobil Corp.		3,459,242
	13,844	Hess Corp.		1,124,133
				8,005,234

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

23

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

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials—5.0%
	17,395	Aflac, Inc.	$	1,130,327
	3,986	BlackRock, Inc.		1,199,029
	24,797	Chubb Corp. (The)		2,283,308
	17,562	Health Care REIT, Inc.		1,138,896
	119,674	Hudson City Bancorp, Inc.		1,074,672
	54,824	Kimco Realty Corp. REIT		1,177,619
	15,729	Moody’s Corp.		1,111,411
	14,970	T. Rowe Price Group, Inc.		1,158,828
	30,629	Torchmark Corp.		2,231,629
	13,207	Travelers Cos., Inc. (The)		1,139,764
	26,981	Wells Fargo & Co.		1,151,819
				14,797,302
		Health Care—10.6%
	66,218	Abbott Laboratories		2,420,268
	35,785	AmerisourceBergen Corp.		2,337,834
	50,858	Baxter International, Inc.		3,350,017
	21,745	Becton, Dickinson and Co.		2,286,052
	18,828	C.R. Bard, Inc.		2,564,750
	25,081	DENTSPLY International, Inc.		1,181,315
	37,524	Johnson & Johnson		3,475,098
	8,124	McKesson Corp.		1,270,106
	40,655	Medtronic, Inc.		2,333,597
	28,215	Mylan, Inc.(b)		1,068,502
	8,627	Perrigo Co.		1,189,577
	19,233	Quest Diagnostics, Inc.		1,152,249
	47,798	Stryker Corp.		3,530,360
	45,192	UnitedHealth Group, Inc.		3,084,806
				31,244,531
		Industrials—26.3%
	27,839	3M Co.		3,503,538
	49,206	AMETEK, Inc.		2,353,523
	56,980	C.H. Robinson Worldwide, Inc.		3,403,985
	39,203	Caterpillar, Inc.		3,267,962
	21,660	Cintas Corp.		1,164,658
	86,552	CSX Corp.		2,255,545
	8,489	Cummins, Inc.		1,078,273
	48,337	Danaher Corp.		3,484,614
	27,157	Deere & Co.		2,222,529
	24,834	Dover Corp.		2,279,513
	51,399	Emerson Electric Co.		3,442,191
	51,454	Expeditors International of Washington, Inc.		2,330,352
	47,243	Fastenal Co.		2,352,701
	15,410	Fluor Corp.		1,143,730
	25,473	General Dynamics Corp.		2,206,726
	45,815	General Electric Co.		1,197,604
	12,931	Honeywell International, Inc.		1,121,506
	29,063	Illinois Tool Works, Inc.		2,289,874
	35,729	L-3 Communications Holdings, Inc.		3,588,978
	17,792	Lockheed Martin Corp.		2,372,385
	28,385	Norfolk Southern Corp.		2,441,678
	22,819	Northrop Grumman Corp.		2,453,271
	28,989	Pall Corp.		2,334,194
	20,744	Parker Hannifin Corp.		2,421,240
	29,419	Raytheon Co.		2,423,243
	33,822	Republic Services, Inc.		1,132,022

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Industrials (continued)
	32,617	Rockwell Collins, Inc.	$	2,277,645
	17,082	Roper Industries, Inc.		2,166,169
	22,599	Snap-On, Inc.		2,351,878
	14,208	Union Pacific Corp.		2,151,091
	31,421	United Technologies Corp.		3,338,481
	13,013	W.W. Grainger, Inc.		3,500,107
	26,778	Waste Management, Inc.		1,165,914
				77,217,120
		Information Technology—4.3%
	30,829	Automatic Data Processing, Inc.		2,311,250
	18,030	International Business Machines Corp.		3,231,157
	28,179	Linear Technology Corp.		1,159,284
	32,783	Microsoft Corp.		1,158,879
	33,606	Oracle Corp.		1,125,801
	54,877	Paychex, Inc.		2,319,102
	16,543	QUALCOMM, Inc.		1,149,242
				12,454,715
		Materials—7.9%
	20,587	Air Products & Chemicals, Inc.		2,244,189
	20,683	Airgas, Inc.		2,255,895
	49,153	Ball Corp.		2,403,090
	19,294	E.I. du Pont de Nemours & Co.		1,180,793
	33,575	Ecolab, Inc.		3,558,950
	13,783	International Flavors & Fragrances, Inc.		1,139,165
	10,490	Monsanto Co.		1,100,191
	27,578	Praxair, Inc.		3,439,252
	12,408	Sherwin-Williams Co. (The)		2,332,704
	40,142	Sigma-Aldrich Corp.		3,469,473
				23,123,702
		Utilities—4.3%
	49,330	AGL Resources, Inc.		2,360,934
	34,233	Entergy Corp.		2,215,560
	27,346	NextEra Energy, Inc.		2,317,573
	20,368	ONEOK, Inc.		1,150,792
	24,226	SCANA Corp.		1,129,658
	26,809	Southern Co. (The)		1,096,756
	53,899	Wisconsin Energy Corp.		2,269,687
				12,540,960
		Total Common Stocks and Other Equity Interests (Cost $235,187,891)		293,559,417
		Money Market Fund—0.0%
	21,286	Premier Portfolio—Institutional Class(c) (Cost $21,286)		21,286
		Total Investments (Cost $235,209,177)—100.0%		293,580,703
		Other assets less liabilities—0.0%		67,288
		Net Assets—100.0%	$	293,647,991

Investment Abbreviations:

REIT—Real Estate Investment Trust

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

24

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

October 31, 2013

(Unaudited)

Notes to Schedule of Investments:

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

^(b)  Non-income producing security.

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

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

25

Portfolio Composition

PowerShares Water Resources Portfolio (PHO)

Industry Breakdown (% of the Fund’s Net Assets) as of October 31, 2013 (Unaudited)
Machinery	50.5
Water Utilities	17.4
Electrical Equipment	9.3
Life Sciences Tools & Services	7.2
Electronic Equipment, Instruments & Components	5.0
Commercial Services & Supplies	4.1
Construction & Engineering	2.7
Chemicals	2.4
Multi-Utilities	1.4
Money Market Funds Plus Other Assets Less Liabilities	(0.0	)

Schedule of Investments^(a)

PowerShares Water Resources Portfolio (PHO)

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Chemicals—2.4%
	1,132,938	Calgon Carbon Corp.(b)	$	22,602,113
		Commercial Services & Supplies—4.1%
	1,495,616	Tetra Tech, Inc.(b)		39,080,446
		Construction & Engineering—2.7%
	609,824	Aegion Corp.(b)		12,501,392
	462,095	Layne Christensen Co.(b)		8,936,917
	116,949	Northwest Pipe Co.(b)		4,213,673
				25,651,982
		Electrical Equipment—9.3%
	504,633	Franklin Electric Co., Inc.		19,100,359
	550,851	Roper Industries, Inc.		69,853,416
				88,953,775
		Electronic Equipment, Instruments & Components—5.0%
	169,239	Badger Meter, Inc.		8,802,121
	909,508	Itron, Inc.(b)		38,808,706
				47,610,827
		Life Sciences Tools & Services—7.2%
	689,330	Waters Corp.(b)		69,567,184
		Machinery—50.5%
	663,905	Energy Recovery, Inc.(b)		3,877,205
	1,221,371	Flowserve Corp.		84,848,643
	95,735	Gorman-Rupp Co. (The)		3,900,244
	448,175	Lindsay Corp.		34,065,782

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Machinery (continued)
	4,512,602	Mueller Water Products, Inc., Class A	$	38,672,999
	492,771	Pall Corp.		39,677,921
	1,133,594	Pentair Ltd.		76,052,821
	645,145	Toro Co. (The)		38,024,846
	252,447	Valmont Industries, Inc.		35,468,804
	604,958	Watts Water Technologies, Inc., Class A		34,954,473
	2,749,811	Xylem, Inc.		94,868,480
				484,412,218
		Multi-Utilities—1.4%
	810,671	Veolia Environnement SA ADR (France)(c)		13,951,648
		Water Utilities—17.4%
	1,019,126	American States Water Co.		29,024,709
	836,282	American Water Works Co., Inc.		35,851,409
	1,402,295	Aqua America, Inc.		35,309,788
	758,429	California Water Service Group		16,533,752
	3,994,156	Cia de Saneamento Basico do Estado de Sao Paulo ADR (Brazil)(c)		42,377,995
	130,119	Connecticut Water Service, Inc.		4,170,314
	270,570	Consolidated Water Co. Ltd. (Cayman Islands)		4,069,373
				167,337,340
		Total Common Stocks and Other Equity Interests (Cost $720,414,769)		959,167,533

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

26

PowerShares Water Resources Portfolio (PHO) (continued)

October 31, 2013

(Unaudited)

Number of Shares			Value
		Money Market Fund—0.0%
	333,016	Premier Portfolio—Institutional Class(d) (Cost $333,016)	$	333,016
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $720,747,785)—100.0%		959,500,549
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—0.8%
	7,119,340	Invesco Liquid Assets Portfolio—Institutional Class (Cost $7,119,340)(d)(e)		7,119,340
		Total Investments (Cost $727,867,125)—100.8%		966,619,889
		Other assets less liabilities—(0.8)%		(7,579,273	)
		Net Assets—100.0%	$	959,040,616

Investment Abbreviations:

ADR—American Depositary Receipt

Notes to Schedule of Investments:

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

^(b)  Non-income producing security.

^(c)  All or a portion of this security was out on loan at October 31, 2013.

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

^(e)  The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2I.

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

27

Portfolio Composition

PowerShares WilderHill Clean Energy Portfolio (PBW)

Industry Breakdown (% of the Fund’s Net Assets) as of October 31, 2013 (Unaudited)
Semiconductors & Semiconductor Equipment	36.2
Electrical Equipment	15.4
Chemicals	8.3
Oil, Gas & Consumable Fuels	7.0
Electronic Equipment, Instruments & Components	6.5
Auto Components	4.9
Construction & Engineering	4.5
Electric Utilities	4.2
Independent Power Producers & Energy Traders	4.2
Software	2.8
Commercial Services & Supplies	2.3
Automobiles	1.9
Metals & Mining	1.8
Money Market Funds Plus Other Assets Less Liabilities	0.0

Schedule of Investments^(a)

PowerShares WilderHill Clean Energy Portfolio (PBW)

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Auto Components—4.9%
	681,495	Ballard Power Systems, Inc. (Canada)(b)(c)	$	933,648
	229,279	Fuel Systems Solutions, Inc.(c)		4,117,851
	241,015	Gentherm, Inc.(c)		5,627,700
				10,679,199
		Automobiles—1.9%
	25,217	Tesla Motors, Inc.(b)(c)		4,033,207
		Chemicals—8.3%
	40,182	Air Products & Chemicals, Inc.		4,380,240
	140,599	OM Group, Inc.(c)		4,780,366
	143,245	Sociedad Quimica y Minera de Chile SA ADR (Chile)		3,954,994
	294,734	Zoltek Cos., Inc.(c)		4,922,058
				18,037,658
		Commercial Services & Supplies—2.3%
	302,881	EnerNOC, Inc.(c)		5,036,911
		Construction & Engineering—4.5%
	442,878	Ameresco, Inc., Class A(c)		4,632,504

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Construction & Engineering (continued)
	165,669	Quanta Services, Inc.(c)	$	5,004,860
				9,637,364
		Electric Utilities—4.2%
	255,295	CPFL Energia SA ADR (Brazil)(b)		4,309,380
	47,892	ITC Holdings Corp.		4,817,456
				9,126,836
		Electrical Equipment—15.4%
	433,943	American Superconductor Corp.(c)		945,996
	2,403,936	China Ming Yang Wind Power Group Ltd. ADR (China)(b)(c)		5,961,761
	536,312	Enphase Energy, Inc.(b)(c)		4,049,156
	3,569,840	FuelCell Energy, Inc.(b)(c)		4,783,586
	112,994	Polypore International, Inc.(b)(c)		5,107,329
	316,257	PowerSecure International, Inc.(c)		5,717,926
	124,915	SolarCity Corp.(b)(c)		6,655,471
				33,221,225

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

28

PowerShares WilderHill Clean Energy Portfolio (PBW) (continued)

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Electronic Equipment, Instruments & Components—6.5%
	472,292	Echelon Corp.(c)	$	1,024,874
	105,992	Itron, Inc.(b)(c)		4,522,679
	498,833	Maxwell Technologies, Inc.(c)		3,741,247
	145,559	Universal Display Corp.(c)		4,643,332
				13,932,132
		Independent Power Producers & Energy Traders—4.2%
	227,014	Calpine Corp.(c)		4,578,872
	172,994	Ormat Technologies, Inc. (Israel)(b)		4,509,954
				9,088,826
		Metals & Mining—1.8%
	635,528	Molycorp, Inc.(b)(c)		3,222,127
	340,734	Rare Element Resources Ltd. (Canada)(b)(c)		633,765
				3,855,892
		Oil, Gas & Consumable Fuels—7.0%
	396,646	Amyris, Inc.(b)(c)		999,548
	287,504	Cosan Ltd., Class A (Brazil)		4,531,063
	523,416	Gevo, Inc.(b)(c)		889,807
	543,006	KiOR, Inc., Class A(b)(c)		1,265,204
	282,793	Renewable Energy Group, Inc.(c)		3,085,272
	410,232	Solazyme, Inc.(b)(c)		4,291,027
				15,061,921
		Semiconductors & Semiconductor Equipment—36.2%
	260,366	Advanced Energy Industries, Inc.(c)		5,436,442
	259,811	Aixtron SE ADR (Germany)(c)		3,715,297
	321,426	Canadian Solar, Inc. (Canada)(c)		7,392,798
	77,877	Cree, Inc.(c)		4,731,028
	118,964	First Solar, Inc.(c)		5,980,320
	550,366	GT Advanced Technologies, Inc.(c)		4,127,745
	1,349,576	Hanwha SolarOne Co. Ltd. ADR (South Korea)(b)(c)		5,857,160
	182,408	International Rectifier Corp.(c)		4,749,904
	536,703	JA Solar Holdings Co. Ltd. ADR (China)(b)(c)		5,173,817
	1,095,386	ReneSola Ltd. ADR (China)(b)(c)		4,764,929
	358,394	Rubicon Technology, Inc.(b)(c)		3,082,189
	472,292	STR Holdings, Inc.(c)		939,861
	578,591	SunEdison, Inc.(c)		5,380,896
	195,902	SunPower Corp. (France)(b)(c)		5,914,282
	409,552	Trina Solar Ltd. ADR (China)(b)(c)		6,008,128
	845,330	Yingli Green Energy Holding Co. Ltd. ADR (China)(b)(c)		5,071,980
				78,326,776
		Software—2.8%
	278,186	Silver Spring Networks, Inc.(c)		6,075,582
		Total Common Stocks and Other Equity Interests (Cost $198,600,138)		216,113,529
		Money Market Fund—0.1%
	215,528	Premier Portfolio—Institutional Class(d) (Cost $215,528)		215,528
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $198,815,666)—100.1%		216,329,057

Number of Shares			Value
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—22.0%
	47,636,757	Invesco Liquid Assets Portfolio—Institutional Class (Cost $47,636,757)(d)(e)	$	47,636,757
		Total Investments (Cost $246,452,423)—122.1%		263,965,814
		Other assets less liabilities—(22.1)%		(47,774,554	)
		Net Assets—100.0%	$	216,191,260

Investment Abbreviations:

ADR—American Depositary Receipt

Notes to Schedule of Investments:

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

^(b)  All or a portion of this security was out on loan at October 31, 2013.

^(c)  Non-income producing security.

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

^(e)  The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2I.

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

China 12.5 % 

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

29

Portfolio Composition

PowerShares WilderHill Progressive Energy Portfolio (PUW)

Industry Breakdown (% of the Fund’s Net Assets) as of October 31, 2013 (Unaudited)
Oil, Gas & Consumable Fuels	17.4
Electrical Equipment	16.8
Machinery	13.5
Chemicals	7.8
Electric Utilities	7.3
Construction & Engineering	5.9
Building Products	5.9
Industrial Conglomerates	4.0
Auto Components	3.9
Energy Equipment & Services	3.6
Food & Staples Retailing	2.2
Automobiles	2.1
Electronic Equipment, Instruments & Components	2.1
Aerospace & Defense	2.1
Household Products	1.9
Semiconductors & Semiconductor Equipment	1.5
Commercial Services & Supplies	1.5
Capital Markets	0.5
Money Market Fund Plus Other Assets Less Liabilities	0.0

Schedule of Investments^(a)

PowerShares WilderHill Progressive Energy Portfolio (PUW)

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Aerospace & Defense—2.1%
	19,710	Hexcel Corp.(b)	$	833,930
		Auto Components—3.9%
	17,582	Johnson Controls, Inc.		811,410
	14,546	Tenneco, Inc.(b)		771,956
				1,583,366
		Automobiles—2.1%
	27,108	Tata Motors Ltd. ADR (India)		849,023
		Building Products—5.9%
	17,257	A.O. Smith Corp.		891,324
	26,023	Apogee Enterprises, Inc.		813,999

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Building Products (continued)
	19,100	Owens Corning(b)	$	686,263
				2,391,586
		Capital Markets—0.5%
	16,938	Hannon Armstrong Sustainable Infrastructure Capital, Inc.		207,491
		Chemicals—7.8%
	17,218	Advanced Emissions Solutions, Inc.(b)		650,324
	22,868	LSB Industries, Inc.(b)		839,713
	16,870	Methanex Corp. (Canada)		981,159
	11,297	Rockwood Holdings, Inc.		714,535
				3,185,731

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

30

PowerShares WilderHill Progressive Energy Portfolio (PUW) (continued)

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Commercial Services & Supplies—1.5%
	35,020	Covanta Holding Corp.	$	601,293
		Construction & Engineering—5.9%
	11,400	Chicago Bridge & Iron Co. NV		844,626
	28,890	Foster Wheeler AG (Switzerland)(b)		779,741
	24,399	MasTec, Inc.(b)		780,036
				2,404,403
		Electric Utilities—7.3%
	246,419	Centrais Eletricas Brasileiras SA ADR (Brazil)		778,684
	80,422	Companhia Energetica de Minas Gerais ADR (Brazil)		721,385
	40,165	Enersis SA ADR (Italy)		662,723
	22,666	NRG Yield, Inc., Class A(b)		802,830
				2,965,622
		Electrical Equipment—16.8%
	8,409	Acuity Brands, Inc.		845,189
	10,755	Eaton Corp. PLC		758,873
	11,878	Emerson Electric Co.		795,470
	12,708	EnerSys		843,176
	24,340	General Cable Corp.		801,516
	9,848	Global Power Equipment Group, Inc.		200,505
	85,319	GrafTech International Ltd.(b)		759,339
	13,111	Power Solutions International, Inc.(b)		763,847
	11,328	Regal-Beloit Corp.		830,682
	79,774	Revolution Lighting Technologies, Inc.(b)		238,524
				6,837,121
		Electronic Equipment, Instruments & Components—2.1%
	48,948	Corning, Inc.		836,521
		Energy Equipment & Services—3.6%
	98,294	McDermott International, Inc.(b)		694,938
	308,686	Nuverra Environmental Solutions, Inc.(b)		753,194
				1,448,132
		Food & Staples Retailing—2.2%
	12,124	Andersons, Inc. (The)		899,358
		Household Products—1.9%
	7,993	Energizer Holdings, Inc.		784,193
		Industrial Conglomerates—4.0%
	23,431	Koninklijke Philips NV (Netherlands)		829,692
	6,184	Siemens AG ADR (Germany)		791,614
				1,621,306
		Machinery—13.5%
	27,843	Altra Holdings, Inc.		845,592
	6,269	Chart Industries, Inc.(b)		673,729
	23,409	ESCO Technologies, Inc.		844,597
	43,594	Luxfer Holdings PLC ADR (United Kingdom)		803,001
	25,828	PMFG, Inc.(b)		202,492
	8,946	WABCO Holdings, Inc.(b)		766,493
	26,988	Westport Innovations, Inc. (Canada)(b)		632,329
	18,481	Woodward, Inc.		740,903
				5,509,136

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Oil, Gas & Consumable Fuels—17.4%
	43,884	Cameco Corp. (Canada)	$	833,796
	31,873	Chesapeake Energy Corp.		891,169
	58,241	Clean Energy Fuels Corp.(b)		663,365
	764,380	Denison Mines Corp. (Canada)(b)		833,174
	20,192	Golar LNG Ltd. (Norway)		749,729
	10,754	Range Resources Corp.		814,186
	398,492	Rentech, Inc.		681,421
	14,920	Sasol Ltd. ADR (South Africa)		761,219
	22,633	Southwestern Energy Co.(b)		842,400
				7,070,459
		Semiconductors & Semiconductor Equipment—1.5%
	21,179	Veeco Instruments, Inc.(b)		618,639
		Total Common Stocks and Other Equity Interests (Cost $33,617,790)		40,647,310
		Money Market Fund—0.1%
	51,460	Premier Portfolio—Institutional Class(c) (Cost $51,460)		51,460
		Total Investments (Cost $33,669,250)—100.1%		40,698,770
		Other assets less liabilities—(0.1)%		(32,784	)
		Net Assets—100.0%	$	40,665,986

Investment Abbreviations:

ADR—American Depositary Receipt

Notes to Schedule of Investments:

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

^(b)  Non-income producing security.

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

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

31

Statements of Assets and Liabilities

October 31, 2013

(Unaudited)

	PowerShares Aerospace & Defense Portfolio (PPA)			PowerShares Cleantech™ Portfolio (PZD)			PowerShares DWA Momentum Portfolio (PDP)			PowerShares Global Listed Private Equity Portfolio (PSP)
Assets:
Unaffiliated investments, at value(a)	$	81,618,458		$	78,071,129		$	1,046,930,851		$	406,144,196
Affiliated investments, at value		96,780			7,188,103			756,515			42,799,439
Total investments, at value		81,715,238			85,259,232			1,047,687,366			448,943,635
Cash		—			—			—			4,221,405
Cash segregated as collateral		—			—			—			2,534,053
Foreign currencies, at value		—			—			—			14,263
Receivables:
Dividends		27,677			41,257			141,096			211,008
Investments sold		—			—			1,732,111			11,179,345
Foreign tax reclaims		—			92,790			—			416,135
Security lending		—			7,437			—			—
Shares sold		—			—			10,427,423			3,077,140
Other assets		1,195			1,195			2,517			1,601
Total Assets		81,744,110			85,401,911			1,059,990,513			470,598,585
Liabilities:
Due to custodian		—			—			—			—
Payables:
Shares repurchased		—			—			1,733,030			880
Collateral upon receipt of securities in-kind		—			—			—			2,534,053
Investments purchased		—			—			10,420,533			3,176,784
Collateral upon return of securities loaned		—			7,155,748			—			—
Expenses recaptured		—			—			—			19,164
Unrealized depreciation on swap agreements		—			—			—			1,567,173
Open written options, at value		—			—			—			—
Accrued advisory fees		31,589			29,255			423,885			181,957
Accrued trustees fees		16,323			15,361			33,547			22,381
Accrued expenses		76,026			92,313			629,674			348,027
Total Liabilities		123,938			7,292,677			13,240,669			7,850,419
Net Assets	$	81,620,172		$	78,109,234		$	1,046,749,844		$	462,748,166
Net Assets Consist of:
Shares of beneficial interest	$	100,025,671		$	142,759,115		$	1,063,539,008		$	482,440,716
Undistributed net investment income (loss)		(21,010	)		(4,403	)		163,705			(22,888,484	)
Undistributed net realized gain (loss)		(27,539,464	)		(83,601,861	)		(181,670,375	)		(80,778,476	)
Net unrealized appreciation		9,154,975			18,956,383			164,717,506			83,974,410
Net Assets	$	81,620,172		$	78,109,234		$	1,046,749,844		$	462,748,166
Shares outstanding (unlimited amount authorized, $0.01 par value)		2,850,000			2,600,000			30,200,000			38,400,000
Net asset value	$	28.64		$	30.04		$	34.66		$	12.05
Market price	$	28.63		$	30.04		$	34.72		$	12.10
Unaffiliated investments, at cost	$	72,463,483		$	59,116,438		$	882,213,345		$	320,618,550
Affiliated investments, at cost	$	96,780		$	7,188,103		$	756,515		$	42,799,439
Total investments, at cost	$	72,560,263		$	66,304,541		$	882,969,860		$	363,417,989
Foreign currencies, at cost	$	—		$	—		$	—		$	14,278
Premium received on written options	$	—		$	—		$	—		$	—
(a) Includes securities on loan with an aggregate value of	$	—		$	6,835,775		$	—		$	—

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

32

PowerShares Golden Dragon China Portfolio (PGJ)			PowerShares Lux Nanotech Portfolio (PXN)			PowerShares S&P 500 BuyWrite Portfolio (PBP)			PowerShares S&P 500® High Quality Portfolio (SPHQ)			PowerShares Water Resources Portfolio (PHO)			PowerShares WilderHill Clean Energy Portfolio (PBW)			PowerShares WilderHill Progressive Energy Portfolio (PUW)
$	303,950,153		$	20,329,893		$	183,484,585		$	293,559,417		$	959,167,533		$	216,113,529		$	40,647,310
	50,634,450			3,560,011			175,669			21,286			7,452,356			47,852,285			51,460
	354,584,603			23,889,904			183,660,254			293,580,703			966,619,889			263,965,814			40,698,770
	—			—			—			—			—			—			—
	—			—			—			—			—			—			—
	—			—			—			—			—			—			—
	93,048			4,668			186,868			328,296			737,489			29,513			50,878
	—			—			238,418			—			—			1,971,962			—
	—			—			144			—			—			32,697			12,091
	120,164			18,731			—			—			2,548			184,042			—
	—			—			—			—			1,243,480			1,971,298			—
	1,195			813			—			1,535			1,601			1,601			812
	354,799,010			23,914,116			184,085,684			293,910,534			968,605,007			268,156,927			40,762,551
	—			—			166,125			—			—			—			—
	—			—			—			—			—			1,971,298			—
	—			—			—			—			—			—			—
	—			—			—			—			1,242,942			1,971,962			—
	50,352,612			3,483,775			—			—			7,119,340			47,636,757			—
	4,084			—			—			—			—			—			—
	—			—			—			—			—			—			—
	—			—			2,630,880			—			—			—			—
	130,807			2,165			113,419			42,500			393,654			91,019			12,561
	27,820			12,137			—			17,573			77,082			40,951			12,300
	303,166			81,312			—			202,470			731,373			253,680			71,704
	50,818,489			3,579,389			2,910,424			262,543			9,564,391			51,965,667			96,565
$	303,980,521		$	20,334,727		$	181,175,260		$	293,647,991		$	959,040,616		$	216,191,260		$	40,665,986
$	522,197,695		$	101,915,751		$	175,248,813		$	368,514,108		$	1,269,638,511		$	1,628,726,069		$	66,180,151
	(761,861	)		8,843			(3,895,422	)		504,472			291,117			151,648			24,584
	(276,874,947	)		(81,725,704	)		(30,468,220	)		(133,742,115	)		(549,641,776	)		(1,430,199,848	)		(32,568,269	)
	59,419,634			135,837			40,290,089			58,371,526			238,752,764			17,513,391			7,029,520
$	303,980,521		$	20,334,727		$	181,175,260		$	293,647,991		$	959,040,616		$	216,191,260		$	40,665,986
	10,700,000			2,950,000			8,750,000			15,000,000			38,650,000			33,650,000			1,350,000
$	28.41		$	6.89		$	20.71		$	19.58		$	24.81		$	6.42		$	30.12
$	28.46		$	6.92		$	20.74		$	19.61		$	24.84		$	6.43		$	30.13
$	244,530,519		$	20,194,056		$	142,593,379		$	235,187,891		$	720,414,769		$	198,600,138		$	33,617,790
$	50,634,450		$	3,560,011		$	120,363		$	21,286		$	7,452,356		$	47,852,285		$	51,460
$	295,164,969		$	23,754,067		$	142,713,742		$	235,209,177		$	727,867,125		$	246,452,423		$	33,669,250
$	—		$	—		$	—		$	—		$	—		$	—		$	—
$	—		$	—		$	1,974,457		$	—		$	—		$	—		$	—
$	48,669,693		$	3,355,726		$	—		$	—		$	6,812,631		$	44,187,445		$	—

33

Statements of Operations

For the six months ended October 31, 2013

(Unaudited)

	PowerShares Aerospace & Defense Portfolio (PPA)			PowerShares Cleantech™ Portfolio (PZD)			PowerShares DWA Momentum Portfolio (PDP)			PowerShares Global Listed Private Equity Portfolio (PSP)
Investment Income:
Unaffiliated dividend income	$	864,873		$	489,545		$	5,046,760		$	7,418,533
Affiliated dividend income		5			2			42			1,989
Securities lending income		—			72,022			—			—
Foreign withholding tax		—			(48,766	)		—			(386,635	)
Total Income		864,878			512,803			5,046,802			7,033,887
Expenses:
Advisory fees		156,599			182,597			2,353,944			1,084,084
Sub-licensing		18,792			27,390			470,789			216,817
Accounting & administration fees		18,046			18,046			91,027			41,714
Professional fees		14,101			15,692			24,827			28,000
Trustees fees		4,697			4,904			16,663			9,447
Custodian & transfer agent fees		2,727			6,735			10,438			20,681
Recapture (Note 3)		—			—			—			91,004
Other expenses		8,472			11,768			48,874			25,971
Total Expenses		223,434			267,132			3,016,562			1,517,718
Waivers		(17,177	)		(21,170	)		(215	)		(11,355	)
Net Expenses		206,257			245,962			3,016,347			1,506,363
Net Investment Income		658,621			266,841			2,030,455			5,527,524
Realized and Unrealized Gain (Loss):
Net realized gain (loss) from:
Investment securities		(120,377	)		(1,226,820	)		24,443,423			983,777
Swap agreements		—			—			—			8,648,537
Written options		—			—			—			—
In-kind redemptions		2,419,304			1,512,917			20,121,513			9,719,732
Foreign currencies		—			4			—			(94,475	)
Net realized gain (loss)		2,298,927			286,101			44,564,936			19,257,571
Change in net unrealized appreciation (depreciation) on:
Investment securities		10,045,251			12,054,235			36,347,058			23,418,495
Swap agreements		—			—			—			(1,486,632	)
Written options		—			—			—			—
Foreign currencies		—			1,209			—			8,244
Net change in unrealized appreciation (depreciation)		10,045,251			12,055,444			36,347,058			21,940,107
Net realized and unrealized gain		12,344,178			12,341,545			80,911,994			41,197,678
Net increase in net assets resulting from operations	$	13,002,799		$	12,608,386		$	82,942,449		$	46,725,202

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

34

PowerShares Golden Dragon China Portfolio (PGJ)			PowerShares Lux Nanotech Portfolio (PXN)			PowerShares S&P 500 BuyWrite Portfolio (PBP)			PowerShares S&P 500® High  Quality Portfolio (SPHQ)			PowerShares Water Resources Portfolio (PHO)			PowerShares WilderHill Clean Energy Portfolio (PBW)			PowerShares WilderHill Progressive Energy Portfolio (PUW)
$	1,891,257		$	67,430		$	2,098,221		$	2,864,965		$	6,519,617		$	369,229		$	346,063
	33			5			2,753			10			54			11			1
	387,545			46,529			—			—			4,057			1,739,449			—
	(146,681	)		(453	)		(229	)		—			(295,580	)		(4,008	)		(12,514	)
	2,132,154			113,511			2,100,745			2,864,975			6,228,148			2,104,681			333,550
	563,856			52,979			717,420			378,933			2,275,715			472,319			98,433
	112,374			10,596			—			66,588			341,357			94,464			19,687
	19,585			18,046			—			23,524			94,559			18,102			18,046
	18,754			17,209			—			17,079			24,798			14,704			14,108
	6,481			4,255			—			7,286			16,449			6,279			4,485
	62,788			1,663			—			5,184			7,089			34,363			3,247
	—			—			—			—			—			—			—
	20,361			7,083			—			13,146			65,297			32,933			7,649
	804,199			111,831			717,420			511,740			2,825,264			673,164			165,655
	(14,948	)		(38,283	)		(84	)		(133,571	)		(333	)		(12,600	)		(27,854	)
	789,251			73,548			717,336			378,169			2,824,931			660,564			137,801
	1,342,903			39,963			1,383,409			2,486,806			3,403,217			1,444,117			195,749
	(2,985,185	)		(355,773	)		2,866,771			(123,044	)		9,614,460			(14,812,352	)		(1,534,085	)
	—			—			—			—			—			—			—
	—			—			(18,647,052	)		—			—			—			—
	16,185,403			1,123,940			5,794,580			7,380,182			13,732,368			35,942,795			1,763,416
	—			—			—			—			—			—			—
	13,200,218			768,167			(9,985,701	)		7,257,138			23,346,828			21,130,443			229,331
	61,761,672			(391,192	)		9,948,754			16,686,472			84,125,241			31,572,447			3,448,066
	—			—			—			—			—			—			—
	—			—			3,007,738			—			—			—			—
	—			—			—			—			—			—			—
	61,761,672			(391,192	)		12,956,492			16,686,472			84,125,241			31,572,447			3,448,066
	74,961,890			376,975			2,970,791			23,943,610			107,472,069			52,702,890			3,677,397
$	76,304,793		$	416,938		$	4,354,200		$	26,430,416		$	110,875,286		$	54,147,007		$	3,873,146

35

Statements of Changes in Net Assets

For the six months ended October 31, 2013 and the year ended April 30, 2013

(Unaudited)

	PowerShares Aerospace & Defense Portfolio (PPA)						PowerShares Cleantech™ Portfolio (PZD)
	October 31, 2013			April 30, 2013			October 31, 2013			April 30, 2013
Operations:
Net investment income	$	658,621		$	1,038,703		$	266,841		$	817,105
Net realized gain (loss)		2,298,927			(893,302	)		286,101			(4,786,886	)
Net increase from payment by affiliate		—			—			—			—
Net change in unrealized appreciation (depreciation)		10,045,251			7,542,587			12,055,444			9,902,157
Net increase (decrease) in net assets resulting from operations		13,002,799			7,687,988			12,608,386			5,932,376
Distributions to Shareholders from:
Net investment income		(762,332	)		(1,029,052	)		(568,380	)		(712,757	)
Shareholder Transactions:
Proceeds from shares sold		32,984,873			998,228			—			—
Value of shares repurchased		(11,211,753	)		(15,017,115	)		(5,244,821	)		(34,211,049	)
Net increase (decrease) in net assets resulting from shares transactions		21,773,120			(14,018,887	)		(5,244,821	)		(34,211,049	)
Increase (Decrease) in Net Assets		34,013,587			(7,359,951	)		6,795,185			(28,991,430	)
Net Assets:
Beginning of period		47,606,585			54,966,536			71,314,049			100,305,479
End of period	$	81,620,172		$	47,606,585		$	78,109,234		$	71,314,049
Undistributed net investment income (loss) at end of period	$	(21,010	)	$	82,701		$	(4,403	)	$	297,136
Changes in Shares Outstanding:
Shares sold		1,250,000			50,000			—			—
Shares repurchased		(450,000	)		(750,000	)		(200,000	)		(1,550,000	)
Shares outstanding, beginning of period		2,050,000			2,750,000			2,800,000			4,350,000
Shares outstanding, end of period		2,850,000			2,050,000			2,600,000			2,800,000

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

36

PowerShares DWA Momentum Portfolio (PDP)						PowerShares Global Listed Private Equity Portfolio (PSP)						PowerShares Golden Dragon China Portfolio (PGJ)						PowerShares Lux Nanotech Portfolio (PXN)
October 31, 2013			April 30, 2013			October 31, 2013			April 30, 2013			October 31, 2013			April 30, 2013			October 31, 2013			April 30, 2013
$	2,030,455		$	5,543,441		$	5,527,524		$	7,617,711		$	1,342,903		$	3,494,223		$	39,963		$	292,362
	44,564,936			74,176,381			19,257,571			17,590,747			13,200,218			(63,947,150	)		768,167			(430,027	)
	—			—			—			—			—			36,920			—			—
	36,347,058			33,244,128			21,940,107			63,857,819			61,761,672			41,814,758			(391,192	)		2,268,946
	82,942,449			112,963,950			46,725,202			89,066,277			76,304,793			(18,601,249	)		416,938			2,131,281
	(2,253,518	)		(5,799,247	)		(33,712,250	)		(12,397,099	)		(1,371,248	)		(4,722,570	)		(140,704	)		(319,441	)
	177,050,329			698,921,973			71,720,230			70,242,710			91,499,278			13,060,293			5,550,413			36,885,485
	(87,918,379	)		(500,235,301	)		(30,476,523	)		(35,164,174	)		(44,196,543	)		(53,830,199	)		(5,127,001	)		(41,345,037	)
	89,131,950			198,686,672			41,243,707			35,078,536			47,302,735			(40,769,906	)		423,412			(4,459,552	)
	169,820,881			305,851,375			54,256,659			111,747,714			122,236,280			(64,093,725	)		699,646			(2,647,712	)
	876,928,963			571,077,588			408,491,507			296,743,793			181,744,241			245,837,966			19,635,081			22,282,793
$	1,046,749,844		$	876,928,963		$	462,748,166		$	408,491,507		$	303,980,521		$	181,744,241		$	20,334,727		$	19,635,081
$	163,705		$	386,768		$	(22,888,484	)	$	5,296,242		$	(761,861	)	$	(733,516	)	$	8,843		$	109,584
	5,300,000			24,850,000			6,150,000			6,400,000			3,300,000			700,000			800,000			5,750,000
	(2,700,000	)		(17,750,000	)		(2,650,000	)		(3,700,000	)		(1,850,000	)		(2,850,000	)		(750,000	)		(6,350,000	)
	27,600,000			20,500,000			34,900,000			32,200,000			9,250,000			11,400,000			2,900,000			3,500,000
	30,200,000			27,600,000			38,400,000			34,900,000			10,700,000			9,250,000			2,950,000			2,900,000

37

Statements of Changes in Net Assets (continued)

For the six months ended October 31, 2013 and the year ended April 30, 2013

(Unaudited)

	PowerShares S&P 500 BuyWrite Portfolio (PBP)						PowerShares S&P 500® High Quality Portfolio (SPHQ)
	October 31, 2013			April 30, 2013			October 31, 2013			April 30, 2013
Operations:
Net investment income	$	1,383,409		$	3,830,146		$	2,486,806		$	3,520,778
Net realized gain (loss)		(9,985,701	)		8,777,327			7,257,138			5,178,617
Net change in unrealized appreciation (depreciation)		12,956,492			406,705			16,686,472			24,339,195
Net increase (decrease) in net assets resulting from operations		4,354,200			13,014,178			26,430,416			33,038,590
Distributions to Shareholders from:
Net investment income		(5,792,700	)		(8,424,421	)		(2,509,608	)		(3,292,190	)
Net realized gains		—			(2,056,844	)		—			—
		(5,792,700	)		(10,481,265	)		(2,509,608	)		(3,292,190	)
Shareholder Transactions:
Proceeds from shares sold		—			155,680,453			59,942,420			76,363,194
Value of shares repurchased		(22,608,069	)		(107,519,457	)		(18,951,306	)		(23,794,170	)
Net increase (decrease) in net assets resulting from shares transactions		(22,608,069	)		48,160,996			40,991,114			52,569,024
Increase (Decrease) in Net Assets		(24,046,569	)		50,693,909			64,911,922			82,315,424
Net Assets:
Beginning of period		205,221,829			154,527,920			228,736,069			146,420,645
End of period	$	181,175,260		$	205,221,829		$	293,647,991		$	228,736,069
Undistributed net investment income (loss) at end of period	$	(3,895,422	)	$	513,869		$	504,472		$	527,274
Changes in Shares Outstanding:
Shares sold		—			7,650,000			3,200,000			4,700,000
Shares repurchased		(1,100,000	)		(5,300,000	)		(1,000,000	)		(1,450,000	)
Shares outstanding, beginning of period		9,850,000			7,500,000			12,800,000			9,550,000
Shares outstanding, end of period		8,750,000			9,850,000			15,000,000			12,800,000

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

38

PowerShares Water Resources Portfolio (PHO)						PowerShares WilderHill Clean Energy Portfolio (PBW)						PowerShares WilderHill Progressive Energy Portfolio (PUW)
October 31, 2013			April 30, 2013			October 31, 2013			April 30, 2013			October 31, 2013			April 30, 2013
$	3,403,217		$	6,573,110		$	1,444,117		$	3,362,695		$	195,749		$	550,558
	23,346,828			(8,583,436	)		21,130,443			(138,364,257	)		229,331			757,073
	84,125,241			137,318,912			31,572,447			125,881,934			3,448,066			791,507
	110,875,286			135,308,586			54,147,007			(9,119,628	)		3,873,146			2,099,138
	(4,140,286	)		(6,646,911	)		(2,658,953	)		(4,631,864	)		(397,650	)		(318,497	)
	—			—			—			—			—			—
	(4,140,286	)		(6,646,911	)		(2,658,953	)		(4,631,864	)		(397,650	)		(318,497	)
	16,880,852			53,224,195			94,493,130			24,870,370			2,681,085			—
	(41,639,531	)		(130,331,858	)		(72,283,755	)		(46,640,787	)		(4,074,718	)		(11,055,489	)
	(24,758,679	)		(77,107,663	)		22,209,375			(21,770,417	)		(1,393,633	)		(11,055,489	)
	81,976,321			51,554,012			73,697,429			(35,521,909	)		2,081,863			(9,274,848	)
	877,064,295			825,510,283			142,493,831			178,015,740			38,584,123			47,858,971
$	959,040,616		$	877,064,295		$	216,191,260		$	142,493,831		$	40,665,986		$	38,584,123
$	291,117		$	1,028,186		$	151,648		$	1,366,484		$	24,584		$	226,485
	700,000			2,550,000			16,250,000			5,500,000			100,000			—
	(1,800,000	)		(6,750,000	)		(12,350,000	)		(10,800,000	)		(150,000	)		(450,000	)
	39,750,000			43,950,000			29,750,000			35,050,000			1,400,000			1,850,000
	38,650,000			39,750,000			33,650,000			29,750,000			1,350,000			1,400,000

39

Financial Highlights

PowerShares Aerospace & Defense Portfolio (PPA)

	Six-Months Ended October 31,  2013 (Unaudited)			Year Ended April 30,
				2013			2012			2011			2010			2009
Per Share Operating Performance:
Net asset value at beginning of period	$	23.22		$	19.99		$	20.57		$	19.07		$	13.38		$	20.93
Net investment income(a)		0.28			0.44			0.21			0.18			0.17			0.16
Net realized and unrealized gain (loss) on investments		5.45			3.22			(0.60	)		1.49			5.73			(7.56	)
Total from investment operations		5.73			3.66			(0.39	)		1.67			5.90			(7.40	)
Distributions to shareholders from:
Net investment income		(0.31	)		(0.43	)		(0.19	)		(0.17	)		(0.21	)		(0.15	)
Net asset value at end of period	$	28.64		$	23.22		$	19.99		$	20.57		$	19.07		$	13.38
Market price at end of period(b)	$	28.63		$	23.20		$	19.98		$	20.57		$	19.07		$	13.37
Net Asset Value Total Return(c)		24.81	%		18.69	%		(1.82	)%		8.91	%		44.36	%		(35.46	)%
Market Price Total Return(c)		24.87	%		18.65	%		(1.87	)%		8.91	%		44.47	%		(35.48	)%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	81,620		$	47,607		$	54,967		$	107,971		$	137,338		$	116,429
Ratio to average net assets of:
Expenses, after Waivers		0.66	%(d)		0.66	%		0.66	%		0.66	%		0.66	%		0.66	%
Expenses, prior to Waivers		0.71	%(d)		0.74	%		0.76	%		0.73	%		0.69	%		0.67	%
Net investment income, after Waivers		2.10	%(d)		2.18	%		1.09	%		0.99	%		1.08	%		1.01	%
Portfolio turnover rate(e)		5	%		17	%		25	%		12	%		17	%		9	%

PowerShares Cleantech^TM Portfolio (PZD)

	Six-Months Ended October 31, 2013 (Unaudited)			Year Ended April 30,
				2013			2012			2011			2010			2009
Per Share Operating Performance:
Net asset value at beginning of period	$	25.47		$	23.06		$	30.10		$	25.00		$	19.25		$	33.63
Net investment income (loss)(a)		0.10			0.26			0.24			0.06			0.03			(0.00	)(f)
Net realized and unrealized gain (loss) on investments		4.68			2.37			(7.07	)		5.05			5.77			(14.38	)
Total from investment operations		4.78			2.63			(6.83	)		5.11			5.80			(14.38	)
Distributions to shareholders from:
Net investment income		(0.21	)		(0.22	)		(0.21	)		(0.01	)		(0.04	)		—
Return of capital		—			—			—			—			(0.01	)		—
Total distributions		(0.21	)		(0.22	)		(0.21	)		(0.01	)		(0.05	)		—
Net asset value at end of period	$	30.04		$	25.47		$	23.06		$	30.10		$	25.00		$	19.25
Market price at end of period(b)	$	30.04		$	25.36		$	22.98		$	30.08		$	24.80		$	19.35
Net Asset Value Total Return(c)		18.94	%		11.59	%		(22.65	)%		20.43	%		30.16	%		(42.76	)%
Market Price Total Return(c)		19.45	%		11.50	%		(22.87	)%		21.32	%		28.45	%		(42.45	)%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	78,109		$	71,314		$	100,305		$	162,530		$	160,021		$	111,674
Ratio to average net assets of:
Expenses, after Waivers		0.67	%(d)		0.67	%		0.67	%		0.67	%		0.67	%		0.67	%
Expenses, prior to Waivers		0.73	%(d)		0.76	%		0.74	%		0.74	%		0.71	%		0.73	%
Net investment income (loss), after Waivers		0.73	%(d)		1.16	%		0.97	%		0.22	%		0.11	%		(0.01	)%
Portfolio turnover rate(e)		11	%		22	%		27	%		24	%		31	%		72	%

^(a)  Based on average shares outstanding.

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

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

^(d)  Annualized.

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

^(f)  Amount represents less than $0.005.

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

40

Financial Highlights (continued)

PowerShares DWA Momentum Portfolio (PDP)

	Six-Months Ended October 31, 2013 (Unaudited)			Year Ended April 30,
				2013			2012			2011			2010			2009
Per Share Operating Performance:
Net asset value at beginning of period	$	31.77		$	27.86		$	26.52		$	21.25		$	14.14		$	25.97
Net investment income(a)		0.07			0.23			0.07			0.04			0.06			0.07
Net realized and unrealized gain (loss) on investments		2.90			3.92			1.31			5.29			7.15			(11.86	)
Total from investment operations		2.97			4.15			1.38			5.33			7.21			(11.79	)
Distributions to shareholders from:
Net investment income		(0.08	)		(0.24	)		(0.04	)		(0.06	)		(0.10	)		(0.04	)
Net asset value at end of period	$	34.66		$	31.77		$	27.86		$	26.52		$	21.25		$	14.14
Market price at end of period(b)	$	34.72		$	31.76		$	27.86		$	26.54		$	21.24		$	14.13
Net Asset Value Total Return(c)		9.37	%		15.02	%		5.22	%		25.11	%		51.28	%		(45.40	)%
Market Price Total Return(c)		9.59	%		14.98	%		5.15	%		25.26	%		51.31	%		(45.49	)%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	1,046,750		$	876,929		$	571,078		$	450,904		$	159,371		$	138,549
Ratio to average net assets of:
Expenses, after Waivers(d)		0.64	%(e)		0.67	%		0.65	%		0.70	%		0.70	%		0.69	%
Expenses, prior to Waivers(d)		0.64	%(e)		0.67	%		0.65	%		0.71	%		0.73	%		0.68	%
Net investment income, after Waivers		0.43	%(e)		0.82	%		0.29	%		0.19	%		0.35	%		0.38	%
Portfolio turnover rate(f)		47	%		66	%		96	%		42	%		52	%		87	%

PowerShares Global Listed Private Equity Portfolio (PSP)

	Six-Months Ended October 31, 2013 (Unaudited)			Year Ended April 30,
				2013			2012			2011			2010			2009
Per Share Operating Performance:
Net asset value at beginning of period	$	11.70		$	9.22		$	12.17		$	10.04		$	6.72		$	20.27
Net investment income(a)		0.15			0.24			0.26			0.26			0.33			0.87
Net realized and unrealized gain (loss) on investments		1.10			2.64			(2.58	)		2.41			3.27			(13.55	)
Total from investment operations		1.25			2.88			(2.32	)		2.67			3.60			(12.68	)
Distributions to shareholders from:
Net investment income		(0.90	)		(0.40	)		(0.56	)		(0.54	)		(0.28	)		(0.87	)
Return of capital		—			—			(0.07	)		—			—			—
Total distributions		(0.90	)		(0.40	)		(0.63	)		(0.54	)		(0.28	)		(0.87	)
Net asset value at end of period	$	12.05		$	11.70		$	9.22		$	12.17		$	10.04		$	6.72
Market price at end of period(b)	$	12.10		$	11.75		$	9.25		$	12.25		$	10.06		$	6.71
Net Asset Value Total Return(c)		11.43	%		31.87	%		(19.51	)%		27.93	%		54.20	%		(64.23	)%
Market Price Total Return(c)		11.44	%		32.00	%		(19.80	)%		28.48	%		54.70	%		(64.29	)%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	462,748		$	408,492		$	296,744		$	493,622		$	211,879		$	60,476
Ratio to average net assets of:
Expenses, after Waivers(d)		0.69	%(e)		0.70	%		0.71	%		0.70	%		0.70	%		0.70	%
Expenses, prior to Waivers(d)		0.70	%(e)		0.70	%		0.76	%		0.73	%		0.72	%		0.78	%
Net investment income, after Waivers		2.55	%(e)		2.47	%		2.79	%		2.50	%		3.66	%(g)		7.75	%
Portfolio turnover rate(f)		22	%		53	%		88	%		112	%		121	%		74	%

^(a)  Based on average shares outstanding.

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

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

^(d)  In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the investment companies in which the Fund invests. Estimated investment company expenses are not expenses that are incurred directly by the Fund. They are expenses that are incurred directly by the investment companies and are deducted from the value of the funds that the Fund invests in. The effect of the estimated investment company expenses that you bear indirectly is included in the Fund’s total return.

^(e)  Annualized.

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

^(g)  Net investment income per share and the ratio of net investment income to average net assets include a special stock dividend in which the Fund elected a cash payment of $0.96 per share owned of American Capital Ltd. on August 7, 2009. Net investment income per share and the ratio of net investment income to average net assets excluding the special dividend are $0.27 and 2.94%, respectively.

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

41

Financial Highlights (continued)

PowerShares Golden Dragon China Portfolio (PGJ)

	Six-Months Ended October 31, 2013 (Unaudited)			Year Ended April 30,
				2013			2012			2011			2010			2009
Per Share Operating Performance:
Net asset value at beginning of period	$	19.65		$	21.56		$	28.98		$	25.03		$	17.47		$	28.88
Net investment income(a)		0.15			0.34			0.48			0.21			0.13			0.20
Net realized and unrealized gain (loss) on investments		8.76			(1.81	)		(7.43	)		3.92			7.63			(11.44	)
Total from investment operations		8.91			(1.47	)		(6.95	)		4.13			7.76			(11.24	)
Distributions to shareholders from:
Net investment income		(0.15	)		(0.44	)		(0.47	)		(0.18	)		(0.17	)		(0.17	)
Return of capital		—			—			—			—			(0.03	)		—
Total distributions		(0.15	)		(0.44	)		(0.47	)		(0.18	)		(0.20	)		(0.17	)
Net asset value at end of period	$	28.41		$	19.65		$	21.56		$	28.98		$	25.03		$	17.47
Market price at end of period(b)	$	28.46		$	19.59		$	21.49		$	28.87		$	25.04		$	17.48
Net Asset Value Total Return(c)		45.48	%		(6.73	)%(d)		(23.98	)%		16.60	%		44.51	%		(39.06	)%
Market Price Total Return(c)		46.18	%		(6.70	)%		(23.93	)%		16.11	%		44.49	%		(38.92	)%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	303,981		$	181,744		$	245,838		$	446,292		$	455,523		$	279,490
Ratio to average net assets of:
Expenses, after Waivers		0.70	%(e)		0.70	%		0.69	%		0.70	%		0.70	%		0.69	%
Expenses, prior to Waivers		0.71	%(e)		0.75	%		0.71	%		0.72	%		0.71	%		0.71	%
Net investment income, after Waivers		1.19	%(e)		1.78	%		2.08	%		0.82	%		0.56	%		1.06	%
Portfolio turnover rate(f)		16	%		63	%		23	%		15	%		35	%		20	%

PowerShares Lux Nanotech Portfolio (PXN)

	Six-Months Ended October 31, 2013 (Unaudited)			Year Ended April 30,
				2013			2012			2011			2010			2009
Per Share Operating Performance:
Net asset value at beginning of period	$	6.77		$	6.37		$	9.60		$	10.33		$	7.59		$	14.07
Net investment income (loss)(a)		0.01			0.09			0.06			(0.00	)(g)		(0.00	)(g)		0.02
Net realized and unrealized gain (loss) on investments		0.15			0.40			(3.26	)		(0.73	)		2.76			(6.50	)
Total from investment operations		0.16			0.49			(3.20	)		(0.73	)		2.76			(6.48	)
Distributions to shareholders from:
Net investment income		(0.04	)		(0.09	)		(0.03	)		—			(0.02	)		—
Return of capital		—			—			—			—			0.00	(g)		—
Total distributions		(0.04	)		(0.09	)		(0.03	)		—			(0.02	)		—
Net asset value at end of period	$	6.89		$	6.77		$	6.37		$	9.60		$	10.33		$	7.59
Market price at end of period(b)	$	6.92		$	6.80		$	6.37		$	9.70		$	10.32		$	7.60
Net Asset Value Total Return(c)		2.44	%		7.84	%		(33.40	)%		(7.07	)%		36.39	%		(46.06	)%
Market Price Total Return(c)		2.43	%		8.32	%		(34.09	)%		(6.01	)%		36.08	%		(45.79	)%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	20,335		$	19,635		$	22,283		$	38,390		$	55,290		$	39,484
Ratio to average net assets of:
Expenses, after Waivers(h)		0.69	%(e)		0.70	%		0.70	%		0.70	%		0.70	%		0.70	%
Expenses, prior to Waivers(h)		1.06	%(e)		1.14	%		1.08	%		0.95	%		0.85	%		0.89	%
Net investment income (loss), after Waivers		0.38	%(e)		1.44	%		0.90	%		(0.04	)%		(0.04	)%		0.17	%
Portfolio turnover rate(f)		40	%		30	%		55	%		58	%		57	%		50	%

^(a)  Based on average shares outstanding.

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

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

^(d)  Amount includes the effect of the Adviser pay-in for an economic loss of $0.004 per share. Had the pay-in not been made, the net asset value total return would have been (6.77)%.

^(e)  Annualized.

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

^(g)  Amount represents less than $0.005.

^(h)  In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the investment companies in which the Fund invests. Estimated investment company expenses are not expenses that are incurred directly by the Fund. They are expenses that are incurred directly by the investment companies and are deducted from the value of the funds that the Fund invests in. The effect of the estimated investment company expenses that you bear indirectly is included in the Fund’s total return.

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

42

Financial Highlights (continued)

PowerShares S&P 500 BuyWrite Portfolio (PBP)

	Six-Months Ended October 31, 2013 (Unaudited)			Year Ended April 30,
				2013			2012			2011			2010			2009
Per Share Operating Performance:
Net asset value at beginning of period	$	20.83		$	20.60		$	21.52		$	21.52		$	17.54		$	25.00
Net investment income(a)		0.15			0.33			0.29			0.29			0.27			0.38
Net realized and unrealized gain (loss) on investments		0.37			0.70			1.00			1.34			4.00			(7.38	)
Total from investment operations		0.52			1.03			1.29			1.63			4.27			(7.00	)
Distributions to shareholders from:
Net investment income		(0.64	)		(0.65	)		(2.10	)		(0.27	)		(0.29	)		(0.46	)
Net realized gains		—			(0.15	)		(0.11	)		(1.36	)		—			—
Total distributions		(0.64	)		(0.80	)		(2.21	)		(1.63	)		(0.29	)		(0.46	)
Net asset value at end of period	$	20.71		$	20.83		$	20.60		$	21.52		$	21.52		$	17.54
Market price at end of period(b)	$	20.74		$	20.83		$	20.65		$	21.52		$	21.52		$	17.59
Net Asset Value Total Return(c)		2.54	%		5.22	%		6.74	%		8.11	%		24.48	%		(28.26	)%
Market Price Total Return(c)		2.76	%		4.97	%		7.02	%		8.09	%		24.11	%		(28.16	)%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	181,175		$	205,222		$	154,528		$	120,511		$	167,840		$	84,211
Ratio to average net assets of:
Expenses		0.75	%(d)		0.75	%		0.75	%		0.75	%		0.75	%		0.75	%
Net investment income		1.45	%(d)		1.61	%		1.42	%		1.37	%		1.35	%		2.09	%
Portfolio turnover rate(e)		17	%		22	%		58	%		61	%		51	%		83	%

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

	Six-Months Ended October 31,  2013 (Unaudited)			Year Ended April 30,
				2013			2012			2011			2010			2009
Per Share Operating Performance:
Net asset value at beginning of period	$	17.87		$	15.33		$	14.64		$	12.21		$	9.60		$	16.76
Net investment income(a)		0.18			0.33			0.26			0.20			0.00	(f)		0.04
Net realized and unrealized gain (loss) on investments		1.71			2.52			0.74			2.31			2.64			(7.19	)
Total from investment operations		1.89			2.85			1.00			2.51			2.64			(7.15	)
Distributions to shareholders from:
Net investment income		(0.18	)		(0.31	)		(0.31	)		(0.08	)		(0.03	)		(0.01	)
Net asset value at end of period	$	19.58		$	17.87		$	15.33		$	14.64		$	12.21		$	9.60
Market price at end of period(b)	$	19.61		$	17.87		$	15.33		$	14.64		$	12.21		$	9.60
Net Asset Value Total Return(c)		10.66	%		18.86	%		7.04	%		20.61	%		27.63	%		(42.66	)%
Market Price Total Return(c)		10.83	%		18.86	%		7.04	%		20.61	%		27.63	%		(42.62	)%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	293,648		$	228,736		$	146,421		$	112,695		$	67,746		$	71,048
Ratio to average net assets of:
Expenses, after Waivers		0.29	%(d)		0.39	%		0.50	%		0.52	%		0.70	%		0.70	%
Expenses, prior to Waivers		0.39	%(d)		0.55	%		0.70	%		0.84	%		0.80	%		0.72	%
Net investment income (loss), after Waivers		1.90	%(d)		2.06	%		1.82	%		1.49	%		(0.03	)%		0.27	%
Portfolio turnover rate(e)		5	%		17	%		14	%		64	%		138	%		143	%

^(a)  Based on average shares outstanding.

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

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

^(d)  Annualized.

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

^(f)  Amount represents less than $0.005.

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

43

Financial Highlights (continued)

PowerShares Water Resources Portfolio (PHO)

	Six-Months Ended October 31, 2013 (Unaudited)			Year Ended April 30,
				2013			2012			2011			2010			2009
Per Share Operating Performance:
Net asset value at beginning of period	$	22.06		$	18.78		$	20.25		$	18.05		$	14.04		$	20.66
Net investment income(a)		0.09			0.16			0.14			0.11			0.09			0.08
Net realized and unrealized gain (loss) on investments		2.77			3.28			(1.48	)		2.19			4.03			(6.64	)
Total from investment operations		2.86			3.44			(1.34	)		2.30			4.12			(6.56	)
Distributions to shareholders from:
Net investment income		(0.11	)		(0.16	)		(0.13	)		(0.10	)		(0.11	)		(0.06	)
Net asset value at end of period	$	24.81		$	22.06		$	18.78		$	20.25		$	18.05		$	14.04
Market price at end of period(b)	$	24.84		$	22.05		$	18.77		$	20.24		$	18.05		$	14.02
Net Asset Value Total Return(c)		13.00	%		18.48	%		(6.59	)%		12.81	%		29.48	%		(31.76	)%
Market Price Total Return(c)		13.19	%		18.49	%		(6.59	)%		12.75	%		29.67	%		(31.63	)%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	959,041		$	877,064		$	825,510		$	1,260,648		$	1,335,033		$	1,220,027
Ratio to average net assets of:
Expenses, after Waivers		0.62	%(d)		0.62	%		0.62	%		0.66	%		0.64	%		0.64	%
Expenses, prior to Waivers		0.62	%(d)		0.62	%		0.62	%		0.66	%		0.64	%		0.64	%
Net investment income, after Waivers		0.75	%(d)		0.81	%		0.77	%		0.63	%		0.57	%		0.49	%
Portfolio turnover rate(e)		22	%		31	%		44	%		13	%		20	%		33	%

PowerShares WilderHill Clean Energy Portfolio (PBW)

	Six-Months Ended October 31, 2013 (Unaudited)			Year Ended April 30,
				2013			2012			2011			2010			2009
Per Share Operating Performance:
Net asset value at beginning of period	$	4.79		$	5.08		$	10.35		$	10.12		$	9.03		$	20.94
Net investment income (loss)(a)		0.04			0.11			0.20			(0.03	)		(0.02	)		(0.02	)
Net realized and unrealized gain (loss) on investments		1.67			(0.26	)		(5.33	)		0.26			1.11			(11.89	)
Total from investment operations		1.71			(0.15	)		(5.13	)		0.23			1.09			(11.91	)
Distributions to shareholders from:
Net investment income		(0.08	)		(0.14	)		(0.14	)		—			—			—
Net asset value at end of period	$	6.42		$	4.79		$	5.08		$	10.35		$	10.12		$	9.03
Market price at end of period(b)	$	6.43		$	4.79		$	5.08		$	10.33		$	10.11		$	8.99
Net Asset Value Total Return(c)		36.07	%		(2.64	)%		(49.78	)%		2.27	%		12.07	%		(56.88	)%
Market Price Total Return(c)		36.29	%		(2.65	)%		(49.68	)%		2.18	%		12.46	%		(57.07	)%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	216,191		$	142,494		$	178,016		$	541,472		$	657,486		$	658,400
Ratio to average net assets of:
Expenses, after Waivers		0.70	%(d)		0.70	%		0.70	%		0.70	%		0.70	%		0.69	%
Expenses, prior to Waivers		0.71	%(d)		0.70	%		0.76	%		0.75	%		0.70	%		0.69	%
Net investment income (loss), after Waivers		1.53	%(d)		2.48	%		2.98	%		(0.27	)%		(0.18	)%		(0.12	)%
Portfolio turnover rate(e)		26	%		52	%		46	%		32	%		42	%		41	%

^(a)  Based on average shares outstanding.

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

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

^(d)  Annualized.

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

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

44

Financial Highlights (continued)

PowerShares WilderHill Progressive Energy Portfolio (PUW)

	Six-Months Ended October 31, 2013 (Unaudited)			Year Ended April 30,
				2013			2012			2011			2010			2009
Per Share Operating Performance:
Net asset value at beginning of period	$	27.56		$	25.87		$	30.68		$	25.19		$	17.38		$	28.23
Net investment income(a)		0.14			0.35			0.14			0.10			0.14			0.13
Net realized and unrealized gain (loss) on investments		2.70			1.54			(4.71	)		5.53			7.81			(10.91	)
Total from investment operations		2.84			1.89			(4.57	)		5.63			7.95			(10.78	)
Distributions to shareholders from:
Net investment income		(0.28	)		(0.20	)		(0.24	)		(0.14	)		(0.14	)		(0.07	)
Net asset value at end of period	$	30.12		$	27.56		$	25.87		$	30.68		$	25.19		$	17.38
Market price at end of period(b)	$	30.13		$	27.55		$	25.86		$	30.70		$	25.19		$	17.38
Net Asset Value Total Return(c)		10.44	%		7.38	%		(14.84	)%		22.47	%		45.96	%		(38.23	)%
Market Price Total Return(c)		10.53	%		7.38	%		(14.93	)%		22.55	%		45.96	%		(38.16	)%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	40,666		$	38,584		$	47,859		$	75,175		$	60,451		$	39,970
Ratio to average net assets of:
Expenses, after Waivers		0.70	%(d)		0.70	%		0.71	%		0.70	%		0.70	%		0.70	%
Expenses, prior to Waivers		0.84	%(d)		0.87	%		0.86	%		0.86	%		0.84	%		0.86	%
Net investment income, after Waivers		0.99	%(d)		1.40	%		0.56	%		0.37	%		0.63	%		0.62	%
Portfolio turnover rate(e)		17	%		32	%		36	%		22	%		52	%		32	%

^(a)  Based on average shares outstanding.

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

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

^(d)  Annualized.

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

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

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Notes to Financial Statements

PowerShares Exchange-Traded Fund Trust

October 31, 2013

(Unaudited)

Note 1. Organization

PowerShares Exchange-Traded Fund Trust (the “Trust”) was organized as a Massachusetts business trust on June 9, 2000 and is authorized to have multiple series of portfolios. The Trust is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As of October 31, 2013, the Trust offered fifty-five portfolios. This report includes the following portfolios:

Full Name	Short Name
PowerShares Aerospace & Defense Portfolio (PPA)	“Aerospace & Defense Portfolio”
PowerShares CleantechTM Portfolio (PZD)	“CleantechTM Portfolio”
PowerShares DWA Momentum Portfolio (PDP) (formerly PowerShares DWA Technical LeadersTM Portfolio)	“DWA Momentum Portfolio”
PowerShares Global Listed Private Equity Portfolio (PSP)	“Global Listed Private Equity Portfolio”
PowerShares Golden Dragon China Portfolio (PGJ)	“Golden Dragon China Portfolio”
PowerShares Lux Nanotech Portfolio (PXN)	“Lux Nanotech Portfolio”
PowerShares S&P 500 BuyWrite Portfolio (PBP)	“S&P 500 BuyWrite Portfolio”
PowerShares S&P 500® High Quality Portfolio (SPHQ)	“S&P 500® High Quality Portfolio”
PowerShares Water Resources Portfolio (PHO)	“Water Resources Portfolio”
PowerShares WilderHill Clean Energy Portfolio (PBW)	“WilderHill Clean Energy Portfolio”
PowerShares WilderHill Progressive Energy Portfolio (PUW)	“WilderHill Progressive Energy Portfolio”

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

The market prices of each Fund’s Shares may differ to some degree from the Fund’s net asset value (“NAV”). Unlike conventional mutual funds, each Fund issues and redeems Shares on a continuous basis, at NAV, only in a large specified number of Shares, each called a “Creation Unit.” Creation Units are issued and redeemed generally in-kind for securities included in each Fund’s 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 generally correspond (before fees and expenses) to the price and yield of its respective index listed below (each, an “Underlying Index”):

Fund	Index
Aerospace & Defense Portfolio	SPADETM Defense Index
CleantechTM Portfolio	The Cleantech IndexTM
DWA Momentum Portfolio	Dorsey Wright Technical LeadersTM Index
Global Listed Private Equity Portfolio	Red Rocks Global Listed Private Equity Index
Golden Dragon China Portfolio	NASDAQ Golden Dragon China Index
Lux Nanotech Portfolio	Lux Nanotech IndexTM
S&P 500 BuyWrite Portfolio	CBOE S&P 500 BuyWrite IndexTM
S&P 500® High Quality Portfolio	S&P 500® High Quality Rankings Index
Water Resources Portfolio	NASDAQ OMX US Water IndexSM
WilderHill Clean Energy Portfolio	WilderHill Clean Energy Index
WilderHill Progressive Energy Portfolio	WilderHill Progressive Energy Index

Note 2. Significant Accounting Policies

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

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A. Security Valuation

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

A security listed or traded on an exchange (except convertible 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 and closed-end registered investment companies that do not trade on an exchange are valued at the end of day NAV per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.

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

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

Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.

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

Index 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 buy or sell a security unless that security is added or removed, respectively, from its respective Underlying Index, even if that security generally is underperforming.

Equity Risk. The Funds may invest in equity securities. Equity risk is the risk that the value of the securities that a Fund holds will fall due to general market and economic conditions, perceptions regarding the industries in which the issuers of securities a Fund holds participate or factors relating to specific companies in which the Funds invest. For example, an adverse event, such as an unfavorable

47

earnings report, may depress the value of securities a Fund holds; the price of securities may be particularly sensitive to general movements in the stock market; or a drop in the stock market may depress the price of most or all of the securities a Fund holds. In addition, securities of an issuer in the Funds’ portfolio may decline in price if the issuer fails to make anticipated dividend payments because, among other reasons, the issuer of the security experiences a decline in its financial condition.

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

Non-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.

Non-Diversified Fund Risk. Each Fund (except for Cleantech^TM Portfolio, DWA Momentum Portfolio, S&P 500 BuyWrite Portfolio, S&P 500^® High Quality Portfolio, WilderHill Clean Energy Portfolio and WilderHill Progressive Energy Portfolio) is non-diversified and can invest a greater portion of its assets in securities of individual issuers than diversified funds. As a result, changes in the market value of a single investment could cause greater fluctuations in Share price than would occur in a diversified fund. This may increase a Fund’s volatility and cause the performance of a relatively small number of issuers to have a greater impact on a Fund’s performance.

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

Foreign Investment Risk. For Cleantech^TM Portfolio, investments in the securities of non-U.S. issuers involve risks beyond those associated with investments in U.S. securities. Foreign securities may have relatively low market liquidity, greater market volatility, decreased publicly available information and less reliable financial information about issuers. Foreign securities also are subject to the risks of expropriation, nationalization, political instability, local taxation, potential currency transfer restrictions or other adverse political or economic developments and the difficulty of enforcing obligations in other countries. As the Fund may invest in securities denominated in foreign currencies, fluctuations in the value of the U.S. dollar relative to the values of other currencies may adversely affect investments in foreign securities and may negatively impact the Fund’s returns.

Foreign Securities Risk. For Global Listed Private Equity Portfolio, investments in foreign securities involve risks that are in addition to the risks associated with domestic securities. 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 often are subject to less stringent requirements regarding accounting, auditing, financial reporting and record-keeping than are U.S. companies. Therefore, not all material information regarding these companies will be available.

Risk of Investing in Listed Private Equity Companies. For Global Listed Private Equity Portfolio, there are certain risks inherent in investing in listed private equity companies, which encompass BDCs and other financial institutions or vehicles whose principal business is to invest in and lend capital to, or provide services to privately held companies. The 1940 Act imposes certain restraints upon the operations of a BDC. For example, BDCs are required to invest at least 70% of their total assets primarily in securities of private companies or thinly traded U.S. public companies, cash, cash equivalents, U.S. government securities and high quality debt investments that mature in one year or less. Generally, little public information exists for private and thinly traded companies, and there is a risk that investors may not be able to make a fully informed investment decision. With investments in debt instruments, there is a risk that the issuer may default on its payments or declare bankruptcy. Additionally, a BDC may incur indebtedness only in amounts such that the BDC’s asset coverage equals at least 200% after such incurrence. These limitations on asset mix and leverage may prohibit the way that the BDC raises capital. BDCs generally invest in less mature private companies, which involve greater risk than well-established, publicly-traded companies.

C. Federal Income Taxes

Each Fund intends to comply with the provisions of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), applicable to regulated investment companies and to distribute substantially all of the Fund’s taxable earnings to its shareholders. As such, the Funds will not be subject to federal income taxes on otherwise taxable income (including net realized gains) that is distributed to the shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.

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

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

D. Investment Transactions and Investment Income

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

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

E. Expenses

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

Each Fund (except for S&P 500 BuyWrite Portfolio) is responsible for all of its expenses, including the investment advisory fees, costs of transfer agency, custody, fund administration, legal, audit and other services, interest, taxes, brokerage commissions and other expenses connected with executions of portfolio transactions, sub-licensing fees related to its respective Underlying Index, any distribution fees or expenses, litigation expenses, fees payable to the Trust’s Board members who are not “interested persons” (as defined in the 1940 Act) of the Trust (the “Independent Trustees”) or the Adviser, expenses incurred in connection with the Board members’ services, including travel expenses and legal fees of counsel for the Independent Trustees, acquired fund fees and expenses, if any, and extraordinary expenses.

The S&P 500 BuyWrite Portfolio has agreed to pay an annual unitary management fee to the Adviser. The Adviser has agreed to pay for substantially all expenses of the Fund, including the cost of transfer agency, custody, fund administration, legal, audit and other services, except for advisory fees, distribution fees, if any, brokerage expenses, taxes, interest, litigation expenses and other extraordinary expenses (including acquired fund fees and expenses, if any).

To the extent a Fund invests in other investment companies, the expenses shown in the accompanying financial statements reflect the expenses of the Fund and do not include any expenses of the investment companies in which it invests. The effects of such investment companies’ expenses are included in the realized and unrealized gain or loss on the investments in the investment companies.

F. Dividends and Distributions to Shareholders

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

G. Option Contracts Written

S&P 500 BuyWrite Portfolio may engage in certain strategies involving options to manage or minimize the risk of its investments or for investment purposes. A call option gives the purchaser of such option the right to buy, and the writer (the Fund) the obligation to sell, the underlying security at the stated exercise price during the option period. When the Fund writes (sells) call options, the amount of the premium received is recorded as a liability in the Statements of Assets and Liabilities and is subsequently “marked-to-market” to reflect the current value of the option written. The difference between the premium received and the current value of the option is recorded as unrealized appreciation or depreciation. The net change in unrealized appreciation (depreciation) is reported in the Statements of Operations. If a written call option expires, or if the Fund enters into a closing purchase transaction, the Fund realizes a gain (or a loss if the closing purchase transaction exceeds the premium received when the option was written) without regard to any unrealized gain or loss on the underlying security, and the liability related to such option is extinguished. If a written option is exercised, the Fund realizes a gain or loss from the sale of the underlying security and the proceeds of the sale are increased by the premium originally received. The primary risk in writing a call option is market risk; the Fund gives up the opportunity for profit if the market price of the underlying security increases and the option is exercised but will continue to bear the risk of loss should the price of the underlying security decline. There is also a risk the Fund may not be able to enter into a closing transaction because of an illiquid market.

Writing Covered Call Option Risk. By writing covered call options in return for the receipt of premiums, the S&P 500 BuyWrite Portfolio will give up the opportunity to benefit from potential increases in the value of the S&P 500^® Index above the exercise prices of the

49

Written Options, but will continue to bear the risk of declines in the value of the S&P 500^® Index. The premiums received from the options may not be sufficient to offset any losses sustained from the volatility of the underlying stocks over time. In addition, the Fund’s ability to sell the underlying securities will be limited while the option is in effect unless the Fund extinguishes the option position through the purchase of an offsetting identical option prior to the expiration of the written option. If trading of options is suspended, the Fund may be unable to write options at times that may be desirable or advantageous to the Fund to do so.

H. Swap Agreements

Global Listed Private Equity Portfolio may enter into various swap transactions, including interest rate, total return, index, currency exchange rate and credit default swap contracts for investment purposes or to manage interest rate, currency or credit risk.

Interest rate, total return, index, and currency exchange rate swap agreements are two-party contracts entered into primarily to exchange the returns (or differentials in rates of returns) earned or realized on particular predetermined investments or instruments. The gross returns to be exchanged or “swapped” between the parties are calculated with respect to a notional amount, (i.e., the return on or increase in value of a particular dollar amount invested at a particular interest rate or return of an underlying asset, in a particular foreign currency, or in a “basket” of securities representing a particular index).

Changes in the value of swap agreements are recognized as unrealized gains (losses) in the Statements of Operations by “marking to market” on a daily basis to reflect the value of the swap agreement at the end of each trading day. Payments received or paid at the beginning of the agreement are reflected as such on the Statements of Assets and Liabilities and may be referred to as upfront payments. The Fund accrues for the fixed payment stream and amortizes upfront payments, if any, on swap agreements on a daily basis with the net amount, recorded as a component of realized gain (loss), on the Statements of Operations. A liquidation payment received or made at the termination of a swap agreement is recorded as realized gain (loss) on the Statements of Operations. The Fund segregates liquid securities having a value at least equal to the amount of the potential obligation of a Fund under any swap transaction. The Fund’s maximum risk of loss from counterparty risk, either as the protection seller or as the protection buyer, is the value of the contract. The risk may be mitigated by having a master netting arrangement between the Fund and the counterparty and by the posting of collateral by the counterparty to cover the Fund’s exposure to the counterparty. Entering into these agreements involves, to varying degrees, lack of liquidity and elements of credit, market, and counterparty risk in excess of amounts recognized on the Statements of Assets and Liabilities. Such risks involve the possibility that a swap is difficult to sell or liquidate; the counterparty does not honor its obligations under the agreement and unfavorable interest rates and market fluctuations.

I. Securities Lending

Cleantech^TM Portfolio, Golden Dragon China Portfolio, Lux Nanotech Portfolio, Water Resources Portfolio and WilderHill Clean Energy Portfolio may lend portfolio securities having a market value up to one-third of each Fund’s total assets. Such loans are secured by cash collateral equal to no less than 102% of the market value of the loaned securities determined daily by the securities lending provider. Cash collateral received in connection with these loans is invested in an affiliated money market fund and is shown as such on the Schedule of Investments. It is the policy of these Funds to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. Lending securities entails a risk of loss to a Fund if, and to the extent that, the market value of the securities loaned were to increase, and the borrower did not increase the collateral accordingly, and the borrower failed to return the securities. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. A Fund could experience delays and costs in gaining access to the collateral. A Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, are included in Securities lending income on the Statements of Operations. The aggregate value of securities out on loan is shown on the Statements of Assets and Liabilities, if any.

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 for the selection and ongoing monitoring of the Funds’ investments, managing the Funds’ business affairs and providing certain clerical, bookkeeping and other administrative services. Each Fund (except for S&P 500 BuyWrite Portfolio and S&P 500^® High Quality Portfolio) has agreed to pay the Adviser an annual fee of 0.50% of the Fund’s average daily net assets. S&P 500^® High Quality Portfolio has agreed to pay the Adviser an annual fee of 0.29% of the Fund’s average daily net assets. As compensation for its services, the S&P 500 BuyWrite Portfolio has agreed to pay the Adviser an annual unitary management fee of 0.75% of its average daily net assets. Out of the unitary management fee, the Adviser has agreed to pay for substantially all expenses of S&P 500 BuyWrite Portfolio, including the cost of transfer agency, custody, fund administration, legal, audit, and other services, except for advisory fees, distribution fees, if any, brokerage expenses, taxes, interest, litigation expenses and other extraordinary expenses (including acquired fund fees and expenses, if any).

The Adviser’s parent, Invesco Ltd., has agreed to indemnify and hold harmless the Global Listed Private Equity Portfolio and the Independent Trustees of the Trust against any and all loss, damages, liability and expenses arising from certain alleged omission or misstatement in the Fund’s registration statement.

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The Adviser has entered into an Amended and Restated Excess Expense Agreement (the “Expense Agreement”) with the Trust, pursuant to which the Adviser has agreed to waive fees and/or pay Fund expenses to the extent necessary to prevent the operating expenses (excluding interest expenses, brokerage commissions and other trading expenses, sub-licensing fees, offering costs, taxes, acquired fund fees and expenses, if any, and extraordinary expenses) of each Fund (except for S&P 500^® High Quality Portfolio and S&P 500 BuyWrite Portfolio) from exceeding 0.60% of the Fund’s average daily net assets per year (the “Expense Cap”), through at least August 31, 2014. The Expense Cap (including sublicensing fees) for S&P 500^® High Quality Portfolio is 0.29% of the Fund’s average daily net assets per year through at least August 31, 2014. Offering costs excluded from the Expense Cap are: (a) initial legal fees pertaining to the Funds’ Shares offered for sale; (b) initial Securities and Exchange Commission and state registration fees; and (c) initial fees paid to be listed on an exchange. Unless the Adviser continues the fee waiver agreement, it will terminate on August 31, 2014. The fee waiver agreement cannot be terminated during its term. The Adviser did not waive fees and/or pay Fund expenses during the period under this expense limitation for DWA Momentum Portfolio, Global Listed Private Equity Portfolio and Water Resources Portfolio.

Further, the Adviser has contractually agreed, through at least August 31, 2015, to waive the advisory fee payable by each Fund in an amount equal to 100% of the net advisory fees the Adviser’s affiliate receives from the affiliated money market funds on investments by a Fund (excluding investments of cash collateral from securities lending) in such affiliated money market funds.

For the six-month period ended October 31, 2013, the Adviser waived fees and/or paid Fund expenses for each Fund, in the following amounts:

Aerospace & Defense Portfolio	$	17,177
CleantechTM Portfolio		21,170
DWA Momentum Portfolio		215
Global Listed Private Equity Portfolio		11,355
Golden Dragon China Portfolio		14,948
Lux Nanotech Portfolio		38,283
S&P 500 BuyWrite Portfolio		84
S&P 500® High Quality Portfolio		133,571
Water Resources Portfolio		333
WilderHill Clean Energy Portfolio		12,600
WilderHill Progressive Energy Portfolio		27,854

The Expense Agreement provides that the fees waived or expenses borne by the Adviser are subject to recapture by the Adviser for up to three years from the date the fee was waived or expense was borne by the Adviser, but no recapture payment will be made by a Fund if it would result in the Fund exceeding its Expense Cap as specified above. The Expense Agreement does not apply to S&P 500 BuyWrite Portfolio.

The amounts available for potential future recapture by the Adviser under the Expense Agreement and the expiration schedule at October 31, 2013 are as follows:

	Total Potential Recapture Amounts		Potential Recapture Amounts Expiring
			04/30/14		04/30/15		04/30/16		10/31/16
Aerospace & Defense Portfolio	$	180,426	$	46,105	$	80,440	$	36,735	$	17,146
CleantechTM Portfolio		217,186		58,976		75,189		61,862		21,159
Global Listed Private Equity Portfolio		169,014		—		161,855		7,159		—
Golden Dragon China Portfolio		243,560		67,057		70,047		91,655		14,801
Lux Nanotech Portfolio		288,824		60,565		101,134		88,862		38,263
S&P 500® High Quality Portfolio		853,031		188,403		259,976		271,138		133,514
WilderHill Clean Energy Portfolio		233,717		43,397		177,783		—		12,537
WilderHill Progressive Energy Portfolio		223,721		52,052		79,732		64,090		27,847

The Trust has entered into a Distribution Agreement with Invesco Distributors, Inc. (the “Distributor”), which serves as the distributor of Creation Units for each Fund. The Distributor does not maintain a secondary market in the Shares. The Funds are not charged any fees pursuant to the Distribution Agreement. The Distributor is an affiliate of the Adviser.

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

Fund	Licensor
Aerospace & Defense Portfolio	International Space Business Council
CleantechTM Portfolio	Cleantech Indices LLC
DWA Momentum Portfolio	Dorsey Wright & Associates, Inc.
Global Listed Private Equity Portfolio	Red Rocks Capital Partners, LLC
Golden Dragon China Portfolio	NASDAQ OMX Group, Inc.
Lux Nanotech Portfolio	Lux Research, Inc.
S&P 500 BuyWrite Portfolio	Standard & Poor’s, a division of The McGraw-Hill Companies, Inc.
S&P 500® High Quality Portfolio	Standard & Poor’s Financial Services LLC
Water Resources Portfolio	NASDAQ OMX Group, Inc.
WilderHill Clean Energy Portfolio	WilderShares, LLC
WilderHill Progressive Energy Portfolio	WilderShares, LLC

Each Underlying Index name trademark is owned by its respective Licensor. These trademarks have been licensed to the Adviser for use with the Funds. Each Fund is entitled to use its Underlying Index pursuant to the Trust’s sub-licensing agreement with the Adviser. The Funds (other than the S&P 500 BuyWrite Portfolio) are required to pay the sub-licensing fees that are shown on the Statements of Operations. The Funds are not sponsored, endorsed, sold or promoted by the Licensors, and the Licensors make no representation regarding the advisability of investing in any of these Funds.

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

Note 4. Investments in Affiliates

Each Fund’s Adviser is a wholly-owned subsidiary of Invesco Ltd., and therefore Invesco Ltd. is considered to be affiliated. The table below shows the Fund’s transactions in, and earnings from, its investments in Invesco Ltd. for the six-month period ended October 31, 2013.

S&P 500 BuyWrite Portfolio

	Value April 30, 2013		Purchases at Cost		Proceeds from Sales			Change in Unrealized Appreciation (Depreciation)			Realized Gain		Value October 31, 2013		Dividend Income
Invesco Ltd.	$	208,341	$	13,476	$	(58,187	)	$	(1,221	)	$	13,260	$	175,669	$	2,740

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.

Except for the Funds listed below, as of October 31, 2013, the securities in each Fund were valued based on Level 1 inputs (see the Schedule of Investments for security categories). The appreciation (depreciation) on options held in S&P 500 BuyWrite Portfolio was based on Level 1 inputs. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with

52

investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

	Investments in Securities
	Level 1		Level 2			Level 3		Total
Global Listed Private Equity Portfolio
Equity Securities	$	448,943,635	$	—		$	—	$	448,943,635
Swap Agreements*		—		(1,567,173	)		—		(1,567,173	)
Total Investments	$	448,943,635	$	(1,567,173	)	$	—	$	447,376,462
Golden Dragon China Portfolio
Equity Securities	$	354,584,603	$	—		$	0	$	354,584,603

* Unrealized appreciation (depreciation).

Note 6. Derivative Investments

Global Listed Private Equity Portfolio and S&P 500 BuyWrite Portfolio have implemented required disclosures about derivative instruments and hedging activities in accordance with GAAP. This disclosure is intended to improve financial reporting about derivative instruments and hedging activities by requiring enhanced disclosures to enable investors to better understand their effects on an entity’s financial position and financial performance. The enhanced disclosure has no impact on the results of operations reported in the financial statements.

Value of Derivative Instruments at Period-End

The table below summarizes the value of each Fund’s derivative instruments, detailed by primary risk exposure, held as of October 31, 2013:

	Value
Risk Exposure/Derivative Type	Assets		Liabilities
Global Listed Private Equity Portfolio
Equity risk
Swap agreements(a)	$	—	$	(1,567,173	)
S&P 500 BuyWrite Portfolio
Equity risk
Options written contracts(a)	$	—	$	(2,630,880	)

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

Effect of Derivative Instruments for the six-month period ended October 31, 2013

The table below summarizes the gains (losses) on derivative instruments, detailed by primary risk exposure, recognized in earnings during the period:

	Location of Gain (Loss) on Statements of Operations
	Options*			Swap Agreements*
Global Listed Private Equity Portfolio*
Realized Gain
Equity risk	$	—		$	8,648,537
Change in Unrealized Appreciation (Depreciation)
Equity risk		—			(1,486,632	)
S&P 500 BuyWrite Portfolio*
Realized Gain (Loss)
Equity risk		(18,647,052	)		—
Change in Unrealized Appreciation
Equity risk		3,007,738			—
Total	$	(15,639,314	)	$	7,161,905

* The average notional value of options and swap agreements outstanding during year was $189,652,333 and $43,081,218, respectively.

53

Global Listed Private Equity Portfolio

Open Total Return Swap Agreements
Counterparty	Reference Entity	Buy/Sell Protection		Termination Date		Notional Amount		Value Unrealized Appreciation (Depreciation)
Citibank, N.A.	Fortress Investment Group LLC		Buy		10/31/14	$	5,075,000	$	(290,647	)
Citibank, N.A.	KKR & Co. LP		Buy		10/31/14		15,899,100		(1,040,527	)
Citibank, N.A.	KKR Financial Holdings LLC		Buy		10/31/14		5,921,160		(94,835	)
Citibank, N.A.	The Blackstone Group LP		Buy		10/31/14		19,323,100		(141,164	)
Total								$	(1,567,173	)

S&P 500 BuyWrite Portfolio

	Transactions During the Period
	Call Option Contracts
	Number of Contracts			Premiums Received
Beginning of period		1,352		$	2,940,359
Written		6,817			13,712,929
Closed		(4,806	)		(10,193,579	)
Expired		(2,319	)		(4,485,252	)
End of period		1,044		$	1,974,457

Open Options Written at Period-End
	Contract Month		Strike Price		Number of Contracts		Premiums Received		Unrealized Appreciation (Depreciation)			Value
Call Option S&P 500 Index		Nov-13	$	1,740		1,044	$	1,974,457	$	(656,423	)	$	2,630,880

Offsetting Assets and Liabilities

Effective with the beginning of the Funds’ fiscal year, Global Listed Private Equity Portfolio has adopted Accounting Standards Update (“ASU”) No. 2011-11, Disclosures about Offsetting Assets and Liabilities, which was subsequently clarified in Financial Accounting Standards Board ASU 2013-01 “Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities”. This update is intended to enhance disclosures about financial instruments and derivative instruments that are subject to offsetting on the Statements of Assets and Liabilities and to enable investors to better understand the effect of those arrangements on its financial position. In order for an arrangement to be eligible for netting, the Funds must have a basis to conclude that such netting arrangements are legally enforceable. The Funds enter into netting agreements and collateral agreements in an attempt to reduce the Funds’ counterparty credit risk by providing for a single net settlement with a counterparty of all financial transactions covered by the agreement in an event of default as defined under such agreement.

There were no derivative instruments subject to a netting agreement for which the Funds are not currently netting. The following tables present derivative instruments that are either subject to an enforceable netting agreement or offset by collateral arrangements as of October 31, 2013.

Global Listed Private Equity Portfolio

Liabilities:							Collateral Pledged
Counterparty	Gross amounts presented in Statement of Assets & Liabilities		Gross amounts offset in Statement of Assets & Liabilities		Net amounts of liabilities presented in the Statement of Assets and Liabilities		Financial Instruments		Cash		Net Amount
CitiBank, N.A.	$	1,567,173	$	—	$	1,567,173	$	—	$	—	$	1,567,173

Note 7. Tax Information

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

54

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. Capital losses generated in years beginning after December 22, 2010 can be carried forward for an unlimited period, whereas previous losses expire in 8 tax years. Capital losses with an expiration period may not be used to offset capital gains until all net capital losses without an expiration date have been utilized. Capital loss carryforwards with no expiration date will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The ability to utilize capital loss carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.

The following Funds had capital loss carryforward as of April 30, 2013, which expires as follows:

													Post-effective no expiration
	2014		2015		2016		2017		2018		2019		Short-term		Long-term		Total*
Aerospace & Defense Portfolio	$	—	$	104,662	$	2,374,303	$	7,470,897	$	6,428,813	$	9,464,875	$	—	$	2,845,904	$	28,689,454
CleantechTM Portfolio		—		—		1,171,839		14,341,075		25,186,026		12,098,616		2,508,773		25,440,911		80,747,240
DWA Momentum Portfolio		—		—		5,046,566		92,771,702		60,219,842		10,496,532		51,526,295		—		220,060,937
Global Listed Private Equity Portfolio		—		—		796,018		7,687,052		47,149,399		—		17,753,892		12,389,612		85,775,973
Golden Dragon China Portfolio		1,018,146		3,128,677		1,235,904		22,836,421		74,072,167		35,483,714		13,128,297		115,354,119		266,257,445
Lux Nanotech Portfolio		—		3,986,980		793,005		27,406,131		14,663,516		12,379,025		8,600,062		14,438,652		82,267,371
S&P 500 BuyWrite Portfolio		—		—		—		—		—		—		—		—		—
S&P 500® High Quality Portfolio		—		28,563,259		21,013,690		37,241,965		42,466,537		9,869,908		—		452,022		139,607,381
Water Resources Portfolio		—		11,876,489		3,553,481		93,208,162		265,948,030		33,978,301		24,939,435		68,195,760		501,699,658
WilderHill Clean Energy Portfolio		2,098,368		89,533,576		44,707,703		261,712,498		460,657,845		241,008,862		54,265,564		249,470,990		1,403,455,406
WilderHill Progressive Energy Portfolio		—		—		179,432		8,319,827		12,433,887		2,282,887		3,867,926		4,564,079		31,648,038

* 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 8. Investment Transactions

For the six-month period ended October 31, 2013, 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
Aerospace & Defense Portfolio	$	3,325,850	$	3,317,312
CleantechTM Portfolio		7,605,750		7,765,334
DWA Momentum Portfolio		438,969,529		438,496,143
Global Listed Private Equity Portfolio		84,902,420		116,605,023
Golden Dragon China Portfolio		36,687,520		36,946,737
Lux Nanotech Portfolio		8,248,038		8,452,199
S&P 500 BuyWrite Portfolio		32,721,852		56,562,616
S&P 500® High Quality Portfolio		14,030,085		13,864,272
Water Resources Portfolio		201,726,547		201,942,702
WilderHill Clean Energy Portfolio		48,787,625		48,694,884
WilderHill Progressive Energy Portfolio		6,519,972		6,696,154

55

For the six-month period ended October 31, 2013, in-kind transactions associated with creations and redemptions were as follows:

	Securities Received		Securities Delivered
Aerospace & Defense Portfolio	$	32,878,908	$	11,201,716
CleantechTM Portfolio		—		5,244,224
DWA Momentum Portfolio		176,881,467		87,828,249
Global Listed Private Equity Portfolio		62,767,831		26,836,850
Golden Dragon China Portfolio		91,522,747		43,923,078
Lux Nanotech Portfolio		5,481,068		4,964,396
S&P 500 BuyWrite Portfolio		—		22,796,890
S&P 500® High Quality Portfolio		59,845,214		18,937,495
Water Resources Portfolio		16,870,849		41,475,362
WilderHill Clean Energy Portfolio		93,431,178		72,578,998
WilderHill Progressive Energy Portfolio		2,681,325		4,110,514

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

At October 31, 2013, 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)
Aerospace & Defense Portfolio	$	73,003,235	$	8,712,003		$	11,489,732	$	(2,777,729	)
CleantechTM Portfolio		67,159,800		18,099,432			22,232,870		(4,133,438	)
DWA Momentum Portfolio		884,258,274		163,429,092			182,175,264		(18,746,172	)
Global Listed Private Equity Portfolio		376,785,570		72,158,065			91,851,174		(19,693,109	)
Golden Dragon China Portfolio		304,730,583		49,854,020			67,434,123		(17,580,103	)
Lux Nanotech Portfolio		23,980,567		(90,663	)		1,861,916		(1,952,579	)
S&P 500 BuyWrite Portfolio		142,713,742		40,946,512			42,630,032		(1,683,520	)
S&P 500® High Quality Portfolio		236,012,610		57,568,093			58,892,425		(1,324,332	)
Water Resources Portfolio		753,617,090		213,002,799			254,768,388		(41,765,589	)
WilderHill Clean Energy Portfolio		255,228,730		8,737,084			38,165,552		(29,428,468	)
WilderHill Progressive Energy Portfolio		34,753,153		5,945,617			9,328,925		(3,383,308	)

Note 9. Trustees’ Fees

The Funds compensate each Independent Trustee. The Adviser, as a result of the unitary management fee, pays for such compensation for S&P 500 BuyWrite Portfolio. The Trustee who is an “interested person” (the “Non-Independent Trustee”) of the Trust does not receive any Trustees’ fees.

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

Note 10. Capital

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

Each Fund may issue Shares in advance of receipt of a basket of securities (“Deposit Securities”) subject to various conditions, including a requirement to maintain on deposit with the Trust cash at least equal to 105% of the market value of the missing Deposit Securities. In accordance with each Fund’s Participant Agreement, Creation Units will be issued to an Authorized Participant, notwithstanding the

56

fact that the corresponding Deposit Securities have not been received in part or in whole, in reliance on the undertaking of the Authorized Participant to deliver the missing Deposit Securities as soon as possible, which undertaking shall be secured by the Authorized Participant’s delivery and maintenance of collateral consisting of cash in the form of U.S. dollars in immediately available funds having a value (marked-to-market daily) at least equal to 105%, which the Adviser may change from time to time, of the value of the missing Deposit Securities.

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

Note 11. Indemnifications

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

Note 12. Subsequent Event

At a meeting held on December 17, 2013, the Board of Trustees of the Trust approved the liquidation of PowerShares Lux Nanotech Portfolio, which is expected to commence on February 18, 2014. Investors, who have elected not to sell their shares before February 18, 2014, will receive cash equal to the amount of the net asset value of their shares, which will include any capital gains and dividends, on or about February 25, 2014.

57

(This Page Intentionally Left Blank)

Proxy Voting Policies and Procedures

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

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

Quarterly Portfolios

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

Frequency Distribution of Discounts and Premiums

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

©2013 Invesco PowerShares Capital Management LLC			P-PS-SAR-4
3500 Lacey Road, Suite 700 Downers Grove, IL 60515
invescopowershares.com    800.983.0903		@PowerShares

October 31, 2013

2013 Semi-Annual Report to Shareholders

PKW	PowerShares Buyback AchieversTM Portfolio
PFM	PowerShares Dividend AchieversTM Portfolio
PGF	PowerShares Financial Preferred Portfolio
PEY	PowerShares High Yield Equity Dividend AchieversTM Portfolio
PID	PowerShares International Dividend AchieversTM Portfolio

Table of Contents

Fees and Expenses	3
Dividend Income Portfolios
Schedules of Investments
PowerShares Buyback AchieversTM Portfolio (PKW)	4
PowerShares Dividend AchieversTM Portfolio (PFM)	7
PowerShares Financial Preferred Portfolio (PGF)	10
PowerShares High Yield Equity Dividend AchieversTM Portfolio (PEY)	12
PowerShares International Dividend AchieversTM Portfolio (PID)	14
Statements of Assets and Liabilities	16
Statements of Operations	17
Statements of Changes in Net Assets	18
Financial Highlights	20
Notes to Financial Statements	23

2

Fees and Expenses

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

The example is based on an investment of $1,000 invested at the beginning of the period and held through the six-month period ended October 31, 2013.

In pursuing its investment objective, PowerShares Buyback Achievers Portfolio^TM (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, expenses shown in the table do not include the expenses of the underlying funds, which are borne indirectly by a Fund. If transaction costs and indirect expenses were included, your costs would have been higher.

	Beginning Account Value May 1, 2013		Ending Account Value October 31, 2013		Annualized Expense Ratio Based on the Number of Days in the Period			Expenses Paid During the Six-Month  Period(1)
PowerShares Buyback AchieversTM Portfolio (PKW)
Actual	$	1,000.00	$	1,184.18		0.65	%	$	3.58
Hypothetical (5% return before expenses)		1,000.00		1,021.93		0.65			3.31
PowerShares Dividend AchieversTM Portfolio (PFM)
Actual		1,000.00		1,067.50		0.56			2.92
Hypothetical (5% return before expenses)		1,000.00		1,022.38		0.56			2.85
PowerShares Financial Preferred Portfolio (PGF)
Actual		1,000.00		955.26		0.64			3.15
Hypothetical (5% return before expenses)		1,000.00		1,021.98		0.64			3.26
PowerShares High Yield Equity Dividend AchieversTM Portfolio (PEY)
Actual		1,000.00		1,089.45		0.55			2.90
Hypothetical (5% return before expenses)		1,000.00		1,022.43		0.55			2.80
PowerShares International Dividend AchieversTM Portfolio (PID)
Actual		1,000.00		1,050.74		0.55			2.84
Hypothetical (5% return before expenses)		1,000.00		1,022.43		0.55			2.80

⁽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 October 31, 2013. Expenses are calculated by multiplying the Fund’s annualized expense ratio by the average account value for the period, then multiplying the result by 184/365.

3

Portfolio Composition

PowerShares Buyback Achievers™ Portfolio (PKW)

Sector Breakdown (% of the Fund’s Net Assets) as of October 31, 2013 (Unaudited)
Consumer Discretionary	34.2
Financials	19.7
Information Technology	16.1
Health Care	12.3
Industrials	7.3
Energy	5.1
Consumer Staples	4.4
Materials	0.9
Telecommunication Services	0.0
Money Market Fund Plus Other Assets Less Liabilities	(0.0)

Schedule of Investments^(a)

PowerShares Buyback Achievers™ Portfolio (PKW)

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—34.2%
	98,280	Abercrombie & Fitch Co., Class A	$	3,683,534
	10,822	America’s Car-Mart, Inc.(b)		494,998
	57,572	ANN, Inc.(b)		2,035,746
	133,225	Apollo Group, Inc., Class A(b)		3,555,775
	15,770	Arctic Cat, Inc.		826,348
	144,924	AutoNation, Inc.(b)		6,989,685
	43,957	AutoZone, Inc.(b)		19,107,668
	48,829	Bally Technologies, Inc.(b)		3,571,353
	259,188	Bed Bath & Beyond, Inc.(b)		20,040,416
	400,708	Best Buy Co., Inc.		17,150,302
	70,894	Big Lots, Inc.(b)		2,577,706
	14,793	Blue Nile, Inc.(b)		607,549
	87,053	Brinker International, Inc.		3,866,894
	248,782	Cablevision Systems Corp., Class A		3,868,560
	15,129	Capella Education Co.(b)		921,659
	79,868	Career Education Corp.(b)		437,677
	21,285	CEC Entertainment, Inc.		986,560
	120,740	Charter Communications, Inc. , Class A(b)		16,208,138
	28,076	Children’s Place Retail Stores, Inc. (The)(b)		1,532,669
	41,969	Deckers Outdoor Corp.(b)		2,888,726
	75,517	DeVry, Inc.		2,711,060
	51,460	Dillard’s, Inc., Class A		4,218,691
	653,423	DIRECTV(b)		40,832,403
	175,224	Discovery Communications, Inc., Class A(b)		15,580,918
	146,908	GameStop Corp., Class A		8,053,497
	118,187	GNC Holdings, Inc., Class A		6,951,759
	101,348	Guess?, Inc.		3,167,125

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Discretionary (continued)
	322,680	H&R Block, Inc.	$	9,177,019
	36,846	hhgregg, Inc.(b)		571,481
	64,573	HSN, Inc.		3,383,625
	67,869	Iconix Brand Group, Inc.(b)		2,449,392
	316,717	International Game Technology		5,954,280
	513,446	Interpublic Group of Cos., Inc. (The)		8,625,893
	27,761	ITT Educational Services, Inc.(b)		1,113,771
	26,207	JAKKS Pacific, Inc.		168,773
	139,473	Jarden Corp.(b)		7,721,225
	20,307	Kirkland’s, Inc.(b)		360,449
	279,115	Kohl’s Corp.		15,853,732
	95,982	Lear Corp.		7,428,047
	585,009	Liberty Interactive Corp., Class A(b)		15,771,843
	35,580	LIN Media LLC, Class A(b)		874,201
	1,357,521	Lowe’s Cos., Inc.		67,577,395
	479,089	Macy’s, Inc.		22,090,794
	375,561	Marriott International, Inc., Class A		16,930,290
	56,096	Morningstar, Inc.		4,503,948
	129,204	O’Reilly Automotive, Inc.(b)		15,996,747
	27,530	Papa John’s International, Inc.		2,083,195
	70,130	Pinnacle Entertainment, Inc.(b)		1,641,042
	101,261	Scientific Games Corp., Class A(b)		1,851,051
	137,513	Scripps Networks Interactive, Inc., Class A		11,069,797
	253,168	Service Corp. International		4,559,556
	68,987	Sonic Corp.(b)		1,331,449
	70,922	Tempur-Sealy International, Inc.(b)		2,719,859
	359,176	Time Warner Cable, Inc.		43,154,996

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

4

PowerShares Buyback Achievers™ Portfolio (PKW) (continued)

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Discretionary (continued)
	1,126,966	Time Warner, Inc.	$	77,467,643
	1,806,578	Twenty-First Century Fox, Inc., Class A		61,568,178
	46,683	Valassis Communications, Inc.		1,277,247
	506,768	Viacom, Inc., Class B		42,208,707
	66,239	Weight Watchers International, Inc. (Luxembourg)		2,126,934
	167,294	Wyndham Worldwide Corp.		11,108,322
	120,334	Wynn Resorts Ltd.		20,005,528
				683,593,825
		Consumer Staples—4.4%
	341,651	Coca-Cola Enterprises, Inc.		14,257,096
	189,171	Constellation Brands, Inc., Class A(b)		12,352,866
	73,686	Energizer Holdings, Inc.		7,229,334
	128,545	Herbalife Ltd. (Cayman Islands)		8,332,287
	627,947	Kroger Co. (The)		26,901,250
	69,858	Nu Skin Enterprises, Inc., Class A		8,168,496
	285,176	Safeway, Inc.		9,952,642
	10,340	Seneca Foods Corp., Class A(b)		303,169
				87,497,140
		Energy—5.1%
	1,377,985	ConocoPhillips		101,006,301
	35,942	Green Plains Renewable Energy, Inc.		579,744
				101,586,045
		Financials—19.7%
	358,662	American Capital Ltd.(b)		5,024,855
	107,398	American Financial Group, Inc.		6,042,211
	1,757,124	American International Group, Inc.		90,755,455
	244,966	Ameriprise Financial, Inc.		24,628,882
	32,888	Argo Group International Holdings Ltd.		1,380,638
	93,680	Assurant, Inc.		5,478,406
	251,769	CapitalSource, Inc.		3,293,138
	175,963	Capitol Federal Financial, Inc.		2,229,451
	311,771	Chubb Corp. (The)		28,707,874
	270,193	CNO Financial Group, Inc.		4,209,607
	600,793	Discover Financial Services		31,169,141
	163,943	East West Bancorp, Inc.		5,523,240
	36,569	Employers Holdings, Inc.		1,099,630
	29,276	FBL Financial Group, Inc., Class A		1,309,808
	294,143	First Horizon National Corp.		3,132,623
	37,279	Green Dot Corp., Class A(b)		800,007
	45,179	Investment Technology Group, Inc.(b)		723,768
	156,767	Legg Mason, Inc.		6,030,826
	327,329	Lincoln National Corp.		14,864,010
	86,634	MCG Capital Corp.		408,046
	330,523	McGraw Hill Financial, Inc.		23,030,843
	66,084	Montpelier Re Holdings Ltd.		1,824,579
	196,312	NASDAQ OMX Group, Inc. (The)		6,955,334
	21,044	Piper Jaffray Cos., Inc.(b)		755,269
	34,835	Platinum Underwriters Holdings Ltd.		2,166,389
	68,520	Primerica, Inc.		2,942,934
	12,724	Provident Financial Holdings, Inc.		192,896
	57,317	RenaissanceRe Holdings Ltd.		5,371,176
	62,757	Ryman Hospitality Properties, Inc. REIT		2,316,361
	549,881	SLM Corp.		13,950,481

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	553,223	State Street Corp.	$	38,764,336
	112,988	Torchmark Corp.		8,232,306
	454,007	Travelers Cos., Inc. (The)		39,180,804
	327,456	Unum Group		10,393,453
	26,255	Westfield Financial, Inc.		189,298
	15,384	World Acceptance Corp.(b)		1,601,782
				394,679,857
		Health Care—12.3%
	442,880	Aetna, Inc.		27,768,576
	96,239	Alere, Inc.(b)		3,246,141
	204,403	Allscripts Healthcare Solutions, Inc.(b)		2,826,893
	280,267	AmerisourceBergen Corp.		18,309,843
	855,671	Amgen, Inc.		99,257,836
	234,423	Becton, Dickinson and Co.		24,644,890
	1,634,149	Boston Scientific Corp.(b)		19,103,202
	65,138	Covance, Inc.(b)		5,814,218
	52,262	Enzon Pharmaceuticals, Inc.(b)		77,348
	20,943	LHC Group, Inc.(b)		431,426
	71,406	Questcor Pharmaceuticals, Inc.		4,382,186
	64,648	Sciclone Pharmaceuticals, Inc.(b)		305,785
	167,250	Select Medical Holdings Corp.		1,418,280
	17,451	SurModics, Inc.(b)		411,495
	59,420	United Therapeutics Corp.(b)		5,259,858
	77,988	ViroPharma, Inc.(b)		3,027,494
	361,416	WellPoint, Inc.		30,648,077
				246,933,548
		Industrials—7.3%
	128,637	AECOM Technology Corp.(b)		4,088,084
	9,880	American Science & Engineering, Inc.		649,906
	8,346	Barrett Business Services, Inc.		694,971
	56,570	Briggs & Stratton Corp.		1,037,494
	11,442	Consolidated Graphics, Inc.(b)		733,318
	47,490	Dun & Bradstreet Corp. (The)		5,166,437
	24,591	Encore Wire Corp.		1,217,992
	167,359	Flowserve Corp.		11,626,430
	160,706	GrafTech International Ltd.(b)		1,430,283
	226,308	Iron Mountain, Inc.		6,006,214
	13,285	Kadant, Inc.		475,603
	42,795	Kforce, Inc.		842,634
	111,950	L-3 Communications Holdings, Inc.		11,245,378
	91,778	MasTec, Inc.(b)		2,934,143
	33,439	Mueller Industries, Inc.		2,016,037
	376,160	Norfolk Southern Corp.		32,357,283
	292,132	Northrop Grumman Corp.		31,407,111
	49,355	Resources Connection, Inc.		629,770
	166,884	Rockwell Collins, Inc.		11,653,510
	878,356	Southwest Airlines Co.		15,125,290
	39,989	TAL International Group, Inc.		1,931,869
	61,196	Taser International, Inc.(b)		1,087,453
	47,877	United Stationers, Inc.		2,127,654
				146,484,864
		Information Technology—16.1%
	47,373	Advanced Energy Industries, Inc.(b)		989,148
	259,310	Amkor Technology, Inc.(b)		1,376,936

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

5

PowerShares Buyback Achievers™ Portfolio (PKW) (continued)

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	16,396	Anaren, Inc.(b)	$	409,572
	91,379	AOL, Inc.		3,311,575
	1,431,625	Applied Materials, Inc.		25,554,506
	126,118	Arrow Electronics, Inc.(b)		6,056,186
	163,338	Avnet, Inc.		6,484,519
	17,103	Badger Meter, Inc.		889,527
	52,561	Belden, Inc.		3,535,253
	19,681	Black Box Corp.		492,812
	542,298	CA, Inc.		17,223,384
	27,170	CACI International, Inc., Class A(b)		1,955,697
	20,703	Comtech Telecommunications Corp.		621,504
	129,853	Convergys Corp.		2,563,298
	1,738,198	Corning, Inc.		29,705,804
	177,657	Cypress Semiconductor Corp.		1,648,657
	70,275	Dice Holdings, Inc.(b)		518,629
	54,556	Dolby Laboratories, Inc., Class A		1,949,831
	364,942	Electronic Arts, Inc.(b)		9,579,728
	154,836	Fiserv, Inc.(b)		16,215,974
	147,159	GT Advanced Technologies, Inc.(b)		1,103,693
	55,144	Higher One Holdings, Inc.(b)		438,395
	32,461	Immersion Corp.(b)		412,904
	49,017	InterDigital, Inc.		1,899,409
	74,502	Lexmark International, Inc., Class A		2,648,546
	117,989	Limelight Networks, Inc.(b)		226,539
	585,706	Marvell Technology Group Ltd.		7,028,472
	68,834	Micrel, Inc.		633,273
	134,536	Monster Worldwide, Inc.(b)		581,196
	316,425	Motorola Solutions, Inc.		19,782,891
	78,899	NeuStar, Inc., Class A(b)		3,623,042
	63,683	OmniVision Technologies, Inc.(b)		892,199
	2,887,662	Oracle Corp.		96,736,677
	239,099	PMC—Sierra, Inc.(b)		1,403,511
	110,359	QLogic Corp.(b)		1,362,934
	51,461	QuinStreet, Inc.(b)		457,488
	61,253	RealD, Inc.(b)		423,871
	123,119	Rovi Corp.(b)		2,063,474
	832,437	Symantec Corp.		18,929,617
	44,943	Tech Data Corp.(b)		2,339,733
	222,378	Total System Services, Inc.		6,633,536
	88,432	ValueClick, Inc.(b)		1,698,779
	156,089	Vishay Intertechnology, Inc.(b)		1,915,212
	59,993	WebMD Health Corp.(b)		2,112,953
	1,514,608	Xerox Corp.		15,055,204
	30,797	XO Group, Inc.(b)		427,462
				321,913,550
		Materials—0.9%
	118,537	Avery Dennison Corp.		5,585,464
	183,117	Ball Corp.		8,952,590
	43,427	Cytec Industries, Inc.		3,608,349
				18,146,403
		Telecommunication Services—0.0%
	45,863	General Communication, Inc., Class A(b)		436,157
		Total Common Stocks and Other Equity Interests (Cost $1,795,875,588)		2,001,271,389

Number of Shares			Value
		Money Market Fund—0.0%
	82,350	Premier Portfolio—Institutional Class(c) (Cost $82,350)	$	82,350
		Total Investments (Cost $1,795,957,938)—100.0%		2,001,353,739
		Other assets less liabilities—(0.0)%		(143,573	)
		Net Assets—100.0%	$	2,001,210,166

Investment Abbreviations:

REIT—Real Estate Investment Trust

Notes to Schedule of Investments:

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

^(b)  Non-income producing security.

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

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

6

Portfolio Composition

PowerShares Dividend Achievers™ Portfolio (PFM)

Sector Breakdown (% of the Fund’s Net Assets) as of October 31, 2013 (Unaudited)
Consumer Staples	24.5
Energy	17.7
Industrials	13.3
Health Care	9.5
Consumer Discretionary	8.6
Information Technology	6.0
Financials	5.9
Materials	5.8
Telecommunication Services	4.4
Utilities	4.3
Money Market Fund Plus Other Assets Less Liabilities	0.0

Schedule of Investments^(a)

PowerShares Dividend Achievers™ Portfolio (PFM)

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Consumer Discretionary—8.6%
	1,736	Cracker Barrel Old Country Store, Inc.	$	190,734
	8,479	Family Dollar Stores, Inc.		584,034
	11,397	Genuine Parts Co.		898,425
	3,704	John Wiley & Sons, Inc., Class A		186,274
	10,353	Leggett & Platt, Inc.		307,898
	83,661	Lowe’s Cos., Inc.		4,164,645
	2,016	Matthews International Corp., Class A		81,850
	73,605	McDonald’s Corp.		7,104,355
	2,647	Meredith Corp.		135,791
	497	NACCO Industries, Inc., Class A		28,314
	52,966	NIKE, Inc., Class B		4,012,704
	5,070	Polaris Industries, Inc.		663,916
	16,149	Ross Stores, Inc.		1,249,125
	47,628	Target Corp.		3,085,818
	9,304	Tiffany & Co.		736,598
	53,549	TJX Cos., Inc. (The)		3,255,244
	8,043	VF Corp.		1,729,245
				28,414,970
		Consumer Staples—24.5%
	148,483	Altria Group, Inc.		5,528,022
	1,363	Andersons, Inc. (The)		101,107
	48,113	Archer-Daniels-Midland Co.		1,967,822
	9,468	Brown-Forman Corp., Class B		690,975
	2,806	Casey’s General Stores, Inc.		204,501
	10,266	Church & Dwight Co., Inc.		668,830

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Consumer Staples (continued)
	9,586	Clorox Co. (The)	$	864,561
	328,757	Coca-Cola Co. (The)		13,008,915
	69,346	Colgate-Palmolive Co.		4,488,767
	19,313	Hormel Foods Corp.		839,343
	8,041	J.M. Smucker Co. (The)		894,240
	28,723	Kimberly-Clark Corp.		3,102,084
	2,001	Lancaster Colony Corp.		166,063
	8,826	McCormick & Co., Inc.,		610,318
	4,301	Nu Skin Enterprises, Inc., Class A		502,916
	113,382	PepsiCo, Inc.		9,534,292
	201,135	Procter & Gamble Co. (The)		16,241,651
	43,186	Sysco Corp.		1,396,635
	2,787	Tootsie Roll Industries, Inc.		89,184
	1,718	Universal Corp.		91,106
	6,697	Vector Group Ltd.		108,290
	69,422	Walgreen Co.		4,112,559
	207,737	Wal-Mart Stores, Inc.		15,943,815
				81,155,996
		Energy—17.7%
	2,703	Alliance Resource Partners LP		205,185
	6,636	Buckeye Partners LP		446,404
	1,693	CARBO Ceramics, Inc.		212,201
	130,764	Chevron Corp.		15,686,449
	89,048	ConocoPhillips		6,527,218
	5,285	Energen Corp.		413,921

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

7

PowerShares Dividend Achievers™ Portfolio (PFM) (continued)

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Energy (continued)
	65,699	Enterprise Products Partners LP	$	4,157,433
	19,820	EOG Resources, Inc.		3,535,888
	171,280	Exxon Mobil Corp.		15,350,114
	7,769	Helmerich & Payne, Inc.		602,486
	22,485	Kinder Morgan Energy Partners LP		1,814,539
	16,618	Magellan Midstream Partners LP		997,745
	14,175	Murphy Oil Corp.		855,036
	5,710	NuStar Energy LP		246,215
	59,410	Occidental Petroleum Corp.		5,708,113
	24,543	Plains All American Pipeline LP		1,257,092
	7,301	Sunoco Logistics Partners LP		512,384
	4,579	TC Pipelines LP		233,575
				58,761,998
		Financials—5.9%
	1,785	1st Source Corp.		56,013
	34,451	Aflac, Inc.		2,238,626
	906	Arrow Financial Corp.		23,384
	1,115	BancFirst Corp.		61,960
	2,594	Bank of the Ozarks, Inc.		128,351
	10,542	Brown & Brown, Inc.		336,606
	19,134	Chubb Corp. (The)		1,761,859
	11,953	Cincinnati Financial Corp.		597,650
	6,644	Commerce Bancshares, Inc.		305,690
	2,899	Community Bank System, Inc.		105,263
	1,146	Community Trust Bancorp, Inc.		48,808
	4,504	Cullen/Frost Bankers, Inc.		318,838
	8,411	Eaton Vance Corp.		351,664
	3,449	Erie Indemnity Co., Class A		247,707
	2,678	Essex Property Trust, Inc. REIT		431,158
	4,748	Federal Realty Investment Trust REIT		491,893
	976	First Financial Corp.		33,711
	46,779	Franklin Resources, Inc.		2,519,517
	7,426	HCC Insurance Holdings, Inc.		338,997
	33,028	HCP, Inc. REIT		1,370,662
	20,402	McGraw Hill Financial, Inc.		1,421,611
	4,026	Mercury General Corp.		187,450
	2,040	National Health Investors, Inc. REIT		127,541
	8,904	National Retail Properties, Inc. REIT		306,298
	19,013	Old Republic International Corp.		319,228
	25,476	People’s United Financial, Inc.		367,619
	4,135	Prosperity Bancshares, Inc.		258,231
	13,145	Realty Income Corp. REIT		547,489
	1,357	Republic Bancorp, Inc., Class A		31,238
	1,558	RLI Corp.		147,200
	12,672	SEI Investments Co.		420,584
	12,941	Senior Housing Properties Trust REIT		318,866
	1,373	Southside Bancshares, Inc.		37,483
	3,240	StanCorp Financial Group, Inc.		190,836
	18,944	T. Rowe Price Group, Inc.		1,466,455
	6,882	Tanger Factory Outlet Centers, Inc. REIT		239,838
	1,052	Tompkins Financial Corp.		51,885
	3,361	UMB Financial Corp.		198,030
	3,691	United Bankshares, Inc.		109,180
	931	Universal Health Realty Income Trust REIT		40,889
	1,724	Urstadt Biddle Properties, Inc., Class A REIT		34,032
	9,954	W.R. Berkley Corp.		437,080
	1,979	Westamerica Bancorp.		101,879

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Financials (continued)
	590	Westwood Holdings Group, Inc.	$	31,465
	5,049	WP Carey, Inc. REIT		336,314
				19,497,078
		Health Care—9.5%
	115,951	Abbott Laboratories		4,238,009
	14,373	Becton, Dickinson and Co.		1,511,033
	6,048	C.R. Bard, Inc.		823,859
	24,964	Cardinal Health, Inc.		1,464,388
	180,232	Johnson & Johnson		16,691,285
	74,834	Medtronic, Inc.		4,295,472
	4,649	Owens & Minor, Inc.		173,966
	27,926	Stryker Corp.		2,062,614
	5,000	West Pharmaceutical Services, Inc.		241,750
				31,502,376
		Industrials—13.3%
	50,761	3M Co.		6,388,272
	5,796	A.O. Smith Corp.		299,363
	3,976	ABM Industries, Inc.		109,380
	3,474	Brady Corp., Class A		101,406
	11,796	C.H. Robinson Worldwide, Inc.		704,693
	4,608	Carlisle Cos., Inc.		334,910
	47,850	Caterpillar, Inc.		3,988,776
	9,001	Cintas Corp.		483,984
	3,643	CLARCOR, Inc.		213,043
	10,791	Donaldson Co., Inc.		427,432
	13,151	Dover Corp.		1,207,130
	52,737	Emerson Electric Co.		3,531,797
	15,179	Expeditors International of Washington, Inc.		687,457
	21,799	Fastenal Co.		1,085,590
	3,474	Franklin Electric Co., Inc.		131,491
	25,805	General Dynamics Corp.		2,235,487
	1,536	Gorman-Rupp Co. (The)		62,577
	4,447	Graco, Inc.		343,575
	34,032	Illinois Tool Works, Inc.		2,681,381
	6,089	Lincoln Electric Holdings, Inc.		421,602
	943	Lindsay Corp.		71,677
	23,667	Lockheed Martin Corp.		3,155,758
	1,817	McGrath RentCorp		64,812
	2,709	Mine Safety Appliances Co.		130,465
	4,708	Nordson Corp.		339,400
	23,090	Norfolk Southern Corp.		1,986,202
	10,960	Parker Hannifin Corp.		1,279,251
	14,765	Pitney Bowes, Inc.		315,085
	2,661	Raven Industries, Inc.		88,771
	10,702	Rollins, Inc.		295,803
	7,274	Roper Industries, Inc.		922,416
	12,400	Stanley Black & Decker, Inc.		980,716
	1,362	Tennant Co.		82,660
	67,195	United Technologies Corp.		7,139,469
	1,962	Valmont Industries, Inc.		275,661
	5,106	W.W. Grainger, Inc.		1,373,361
	2,180	Watsco, Inc.		207,732
				44,148,585
		Information Technology—6.0%
	35,634	Automatic Data Processing, Inc.		2,671,481
	1,052	Badger Meter, Inc.		54,715

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

8

PowerShares Dividend Achievers™ Portfolio (PFM) (continued)

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Information Technology (continued)
	840	Cass Information Systems, Inc.	$	48,157
	4,667	Diebold, Inc.		139,823
	3,251	FactSet Research Systems, Inc.		354,164
	8,050	Harris Corp.		498,778
	80,972	International Business Machines Corp.		14,510,992
	6,306	Jack Henry & Associates, Inc.		344,371
	17,137	Linear Technology Corp.		705,016
	21,384	Maxim Integrated Products, Inc.		635,105
				19,962,602
		Materials—5.8%
	15,546	Air Products & Chemicals, Inc.		1,694,669
	6,558	Albemarle Corp.		434,074
	4,867	AptarGroup, Inc.		312,267
	7,570	Bemis Co., Inc.		302,043
	21,519	Ecolab, Inc.		2,281,014
	3,658	H.B. Fuller Co.		175,108
	5,992	International Flavors & Fragrances, Inc.		495,239
	39,240	Monsanto Co.		4,115,491
	23,347	Nucor Corp.		1,208,674
	11,207	PPG Industries, Inc.		2,046,174
	21,719	Praxair, Inc.		2,708,576
	4,719	Royal Gold, Inc.		226,701
	9,694	RPM International, Inc.		375,352
	7,575	Sherwin-Williams Co. (The)		1,424,100
	8,841	Sigma-Aldrich Corp.		764,128
	7,383	Sonoco Products Co.		300,045
	1,518	Stepan Co.		89,365
	6,669	Valspar Corp. (The)		466,630
				19,419,650
		Telecommunication Services—4.4%
	394,326	AT&T, Inc.		14,274,602
	1,148	Atlantic Tele-Network, Inc.		63,622
	7,395	Telephone & Data Systems, Inc.		230,576
				14,568,800
		Utilities—4.3%
	8,631	AGL Resources, Inc.		413,080
	2,826	American States Water Co.		80,484
	12,893	Aqua America, Inc.		324,646
	6,612	Atmos Energy Corp.		292,713
	4,381	Avista Corp.		121,748
	3,236	Black Hills Corp.		164,130
	3,497	California Water Service Group		76,235
	762	Connecticut Water Service, Inc.		24,422
	21,520	Consolidated Edison, Inc.		1,252,894
	13,837	MDU Resources Group, Inc.		412,066
	1,694	MGE Energy, Inc.		95,389
	1,153	Middlesex Water Co.		23,902
	6,111	National Fuel Gas Co.		437,242
	3,056	New Jersey Resources Corp.		140,668
	31,180	NextEra Energy, Inc.		2,642,505
	23,115	Northeast Utilities		991,402
	1,971	Northwest Natural Gas Co.		85,601
	15,033	ONEOK, Inc.		849,364
	5,280	Piedmont Natural Gas Co., Inc.		180,259

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Utilities (continued)
	42,739	PPL Corp.	$	1,309,096
	12,830	Questar Corp.		303,558
	9,682	SCANA Corp.		451,472
	1,367	SJW Corp.		38,590
	2,293	South Jersey Industries, Inc.		136,548
	63,923	Southern Co. (The)		2,615,090
	8,260	UGI Corp.		341,716
	3,034	UNS Energy Corp.		150,122
	6,019	Vectren Corp.		210,183
	3,783	WGL Holdings, Inc.		170,273
	946	York Water Co. (The)		19,592
				14,354,990
		Total Common Stocks and Other Equity Interests (Cost $256,000,494)		331,787,045
		Money Market Fund—0.0%
	33,905	Premier Portfolio—Institutional Class(b) (Cost $33,905)		33,905
		Total Investments (Cost $256,034,399)—100.0%		331,820,950
		Other assets less liabilities—0.0%		7,774
		Net Assets—100.0%	$	331,828,724

Investment Abbreviations:

REIT—Real Estate Investment Trust

Notes to Schedule of Investments:

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

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

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

9

Portfolio Composition

PowerShares Financial Preferred Portfolio (PGF)

Industry Breakdown (% of the Fund’s Net Assets) as of October 31, 2013 (Unaudited)
Commercial Banks	53.4
Diversified Financial Services	23.0
Insurance	13.5
Capital Markets	8.0
Consumer Finance	2.5
Other Assets Less Liabilities	(0.4	)

Schedule of Investments^(a)

PowerShares Financial Preferred Portfolio (PGF)

October 31, 2013

(Unaudited)

Number of Shares			Value
		Preferred Stocks—100.4%
		Capital Markets—8.0%
	676,043	Bank of New York Mellon Corp. (The), 5.20%	$	14,075,215
	549,747	Charles Schwab Corp. (The), 6.00%, Series B		12,985,024
	901,861	Goldman Sachs Group, Inc. (The), 5.50%, Series J		20,589,487
	1,106,359	Goldman Sachs Group, Inc. (The), 5.95%		24,782,442
	1,001,587	Goldman Sachs Group, Inc. (The), 6.20%, Series B		24,438,723
	447,410	Morgan Stanley, 7.13%, Series E(b)		11,610,289
	604,984	State Street Corp., 5.25%, Series C		13,206,801
				121,687,981
		Commercial Banks—53.4%
	804,071	Barclays Bank PLC, 6.63%, Series 2 (United Kingdom)		19,780,147
	909,596	Barclays Bank PLC, 7.10%, Series 3 (United Kingdom)		22,921,819
	674,707	Barclays Bank PLC, 7.75%, Series 4 (United Kingdom)		17,157,799
	2,599,061	Barclays Bank PLC, 8.13%, Series 5 (United Kingdom)		66,302,046
	132,257	BB&T Corp., 5.20%, Series G		2,671,591
	2,264,115	BB&T Corp., 5.63%, Series E		47,999,238
	434,582	BB&T Corp., 5.85%		9,891,086
	399,730	First Niagara Financial Group, Inc., 8.63%, Series B		11,488,240
	590,251	HSBC Finance Corp., 6.36%, Series B (United Kingdom)		14,242,757
	4,822,505	HSBC Holdings PLC, 8.00%, Series 2 (United Kingdom)		131,895,512
	2,607,902	HSBC Holdings PLC, 8.13% (United Kingdom)		67,101,318
	500,113	HSBC USA, Inc., 6.50%, Series H (United Kingdom)		12,252,768
	2,237,565	PNC Financial Services Group, Inc. (The), 6.13%, Series P		56,789,400

Number of Shares			Value
		Preferred Stocks (continued)
		Commercial Banks (continued)
	644,764	Regions Financial Corp., 6.38%, Series A	$	14,765,096
	475,419	Royal Bank of Scotland Group PLC, 5.75%, Series L (United Kingdom)		9,508,380
	361,834	Royal Bank of Scotland Group PLC, 6.35%, Series N (United Kingdom)		7,703,446
	404,118	Royal Bank of Scotland Group PLC, 6.60%, Series S (United Kingdom)		8,894,637
	343,195	Royal Bank of Scotland Group PLC, 6.75%, Series Q (United Kingdom)		7,704,728
	1,581,842	Royal Bank of Scotland Group PLC, 7.25%, Series T (United Kingdom)		38,074,937
	997,330	Santander Finance Preferred SA Unipersonal, 10.50%, Series 10 (Spain)		26,778,311
	594,846	SunTrust Banks, Inc., 5.88%, Series E		12,818,931
	820,020	U.S. Bancorp, 5.15%, Series H		17,523,827
	713,079	U.S. Bancorp, 6.00%, Series G		19,374,356
	1,130,856	U.S. Bancorp, 6.50%, Series F		30,329,558
	56,534	Wells Fargo & Co., 5.13%, Series O		1,171,950
	1,039,453	Wells Fargo & Co., 5.20%		21,828,513
	479,611	Wells Fargo & Co., 5.25%, Series P		10,335,617
	1,462,481	Wells Fargo & Co., 5.85%		35,567,538
	16,161	Wells Fargo & Co., 7.50%, Series L		18,407,379
	1,931,906	Wells Fargo & Co., 8.00%, Series J		54,943,407
				816,224,332
		Consumer Finance—2.5%
	982,480	Capital One Financial Corp., 6.00%, Series B		21,899,479
	684,040	Discover Financial Services, 6.50%, Series B		16,362,237
				38,261,716
		Diversified Financial Services—23.0%
	620,954	Bank of America Corp., 6.20%, Series D		14,958,782
	83,030	Bank of America Corp., 6.38%, Series 3		1,983,587
	27,488	Bank of America Corp., 7.25%, Series L		29,618,320
	763,746	Citigroup, Inc., 5.80%, Series C		16,260,152
	950,000	Citigroup, Inc., 6.88%, Series K(b)		23,571,875

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

10

PowerShares Financial Preferred Portfolio (PGF) (continued)

October 31, 2013

(Unaudited)

Number of Shares			Value
		Preferred Stocks (continued)
		Diversified Financial Services (continued)
	875,000	Citigroup, Inc., 7.13%, Series J	$	22,671,250
	532,617	ING Groep NV, 6.13% (Netherlands)		12,388,671
	1,278,016	ING Groep NV, 6.38% (Netherlands)		30,161,178
	2,519,638	ING Groep NV, 7.38% (Netherlands)		63,595,663
	3,411,216	ING Groep NV, 8.50% (Netherlands)		87,941,148
	953,357	JPMorgan Chase & Co., 5.45%, Series P		20,487,642
	1,296,823	JPMorgan Chase & Co., 5.50%, Series O		28,128,091
				351,766,359
		Insurance—13.5%
	788,854	Aegon NV, 6.38% (Netherlands)		19,177,041
	265,893	Aegon NV, 6.50% (Netherlands)		6,447,905
	380,495	Aegon NV, 6.88% (Netherlands)		9,432,471
	1,240,533	Aegon NV, 7.25% (Netherlands)		31,373,079
	306,238	Allstate Corp. (The), 5.63%		7,187,406
	266,191	Allstate Corp. (The), 6.75%, Series C(b)		6,737,294
	375,544	Arch Capital Group Ltd., 6.75%, Series C		9,099,431
	307,307	Aspen Insurance Holdings Ltd., 5.95%		7,363,076
	496,078	Axis Capital Holdings Ltd., 6.88%, Series C		12,129,107
	1,804,088	MetLife, Inc., 6.50%, Series B		44,849,628
	105,547	PartnerRe Ltd., 5.88%, Series F		2,272,427
	571,621	PartnerRe Ltd., 7.25%, Series E		14,650,646
	402,709	Principal Financial Group, Inc., 6.52%, Series B		9,983,156
	332,067	Prudential PLC, 6.50% (United Kingdom)		8,301,675
	381,511	Prudential PLC, 6.75% (United Kingdom)		9,564,481
	350,045	RenaissanceRe Holdings Ltd., 5.38%, Series E		6,913,389
				205,482,212
		Total Investments (Cost $1,482,069,245)—100.4%		1,533,422,600
		Other assets less liabilities—(0.4)%		(6,249,797	)
		Net Assets—100.0%	$	1,527,172,803

Notes to Schedule of Investments:

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

^(b)  Non-income producing security.

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

United Kingdom	28.9	%
Netherlands	17.1	%

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

11

Portfolio Composition

PowerShares High Yield Equity Dividend Achievers™ Portfolio (PEY)

Industry Breakdown (% of the Fund’s Net Assets) as of October 31, 2013 (Unaudited)
Commercial Banks	15.1
Gas Utilities	14.6
Electric Utilities	9.6
Multi-Utilities	9.5
Insurance	9.2
Tobacco	8.8
Water Utilities	3.5
Commercial Services & Supplies	3.5
Household Products	3.3
Oil, Gas & Consumable Fuels	2.5
Aerospace & Defense	2.4
Diversified Telecommunication Services	2.4
Capital Markets	2.2
Thrifts & Mortgage Finance	2.0
Containers & Packaging	2.0
Media	1.7
Household Durables	1.7
Pharmaceuticals	1.6
Food & Staples Retailing	1.5
Computers & Peripherals	1.4
Hotels, Restaurants & Leisure	1.4
Money Market Fund Plus Other Assets Less Liabilities	0.1

Schedule of Investments^(a)

PowerShares High Yield Equity Dividend Achievers™ Portfolio (PEY)

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks—99.9%
		Aerospace & Defense—2.4%
	64,768	Lockheed Martin Corp.	$	8,636,165
		Capital Markets—2.2%
	143,861	Westwood Holdings Group, Inc.		7,672,107
		Commercial Banks—15.1%
	275,799	Arrow Financial Corp.		7,118,372
	187,956	Community Bank System, Inc.		6,824,683
	164,485	Community Trust Bancorp, Inc.		7,005,416
	74,304	Cullen/Frost Bankers, Inc.		5,259,980
	232,361	Southside Bancshares, Inc.		6,343,455
	123,283	Tompkins Financial Corp.		6,080,318

Number of Shares			Value
		Common Stocks (continued)
		Commercial Banks (continued)
	293,571	United Bankshares, Inc.	$	8,683,830
	117,425	Westamerica Bancorp.		6,045,039
				53,361,093
		Commercial Services & Supplies—3.5%
	576,437	Pitney Bowes, Inc.		12,301,166
		Computers & Peripherals—1.4%
	167,818	Diebold, Inc.		5,027,827
		Containers & Packaging—2.0%
	171,856	Sonoco Products Co.		6,984,228

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

12

PowerShares High Yield Equity Dividend Achievers™ Portfolio (PEY) (continued)

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks (continued)
		Diversified Telecommunication Services—2.4%
	237,908	AT&T, Inc.	$	8,612,270
		Electric Utilities—9.6%
	65,863	NextEra Energy, Inc.		5,581,889
	137,895	Northeast Utilities		5,914,317
	265,902	PPL Corp.		8,144,578
	172,652	Southern Co. (The)		7,063,194
	144,044	UNS Energy Corp.		7,127,297
				33,831,275
		Food & Staples Retailing—1.5%
	158,974	Sysco Corp.		5,141,219
		Gas Utilities—14.6%
	169,510	AGL Resources, Inc.		8,112,749
	137,541	Atmos Energy Corp.		6,088,940
	153,652	New Jersey Resources Corp.		7,072,601
	167,049	Northwest Natural Gas Co.		7,254,938
	180,416	Piedmont Natural Gas Co., Inc.		6,159,402
	209,652	Questar Corp.		4,960,366
	88,949	South Jersey Industries, Inc.		5,296,913
	148,964	WGL Holdings, Inc.		6,704,870
				51,650,779
		Hotels, Restaurants & Leisure—1.4%
	52,050	McDonald’s Corp.		5,023,866
		Household Durables—1.7%
	198,774	Leggett & Platt, Inc.		5,911,539
		Household Products—3.3%
	61,343	Clorox Co. (The)		5,532,525
	56,871	Kimberly-Clark Corp.		6,142,068
				11,674,593
		Insurance—9.2%
	128,146	Cincinnati Financial Corp.		6,407,300
	61,813	Erie Indemnity Co., Class A		4,439,409
	209,987	Mercury General Corp.		9,776,995
	719,976	Old Republic International Corp.		12,088,397
				32,712,101
		Media—1.7%
	118,657	Meredith Corp.		6,087,104
		Multi-Utilities—9.5%
	276,778	Avista Corp.		7,691,661
	105,934	Black Hills Corp.		5,372,973
	119,837	Consolidated Edison, Inc.		6,976,910
	139,468	SCANA Corp.		6,503,393
	205,507	Vectren Corp.		7,176,304
				33,721,241
		Oil, Gas & Consumable Fuels—2.5%
	119,464	ConocoPhillips		8,756,711
		Pharmaceuticals—1.6%
	59,315	Johnson & Johnson		5,493,162
		Thrifts & Mortgage Finance—2.0%
	484,935	People’s United Financial, Inc.		6,997,612

Number of Shares			Value
		Common Stocks (continued)
		Tobacco—8.8%
	238,104	Altria Group, Inc.	$	8,864,612
	98,984	Universal Corp.		5,249,121
	1,057,670	Vector Group Ltd.		17,102,524
				31,216,257
		Water Utilities—3.5%
	278,489	California Water Service Group		6,071,060
	313,058	Middlesex Water Co.		6,489,693
				12,560,753
		Total Common Stocks (Cost $300,752,659)		353,373,068
		Money Market Fund—0.0%
	52,471	Premier Portfolio—Institutional Class(b)
		(Cost $52,471)		52,471
		Total Investments (Cost $300,805,130)—99.9%		353,425,539
		Other assets less liabilities—0.1%		236,917
		Net Assets—100.0%	$	353,662,456

Notes to Schedule of Investments:

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

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

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

13

Portfolio Composition

PowerShares International Dividend Achievers™ Portfolio (PID)

Sector Breakdown (% of the Fund’s Net Assets) as of October 31, 2013 (Unaudited)
Energy	22.3
Health Care	14.7
Telecommunication Services	13.1
Consumer Staples	11.9
Financials	10.5
Consumer Discretionary	9.9
Materials	7.0
Industrials	6.6
Information Technology	2.9
Utilities	1.1
Money Market Fund Plus Other Assets Less Liabilities	0.0

Schedule of Investments

PowerShares International Dividend Achievers™ Portfolio (PID)

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Australia—2.6%
	386,992	BHP Billiton Ltd. ADR(a)	$	27,356,465
		Belgium—3.1%
	422,344	Companhia de Bebidas das Americas ADR		15,690,080
	267,578	Delhaize Group SA ADR(a)		17,108,937
				32,799,017
		Canada—21.8%
	501,907	Cameco Corp.		9,536,233
	97,376	Canadian National Railway Co.		10,704,544
	335,201	Canadian Natural Resources Ltd.		10,642,632
	50,931	Canadian Pacific Railway Ltd.		7,286,698
	381,044	Enbridge, Inc.(a)		16,533,499
	748,690	Ritchie Bros. Auctioneers, Inc.(a)		14,824,062
	606,135	Rogers Communications, Inc., Class B		27,524,590
	944,979	Shaw Communications, Inc., Class B(a)		22,613,347
	492,526	Suncor Energy, Inc.		17,903,320
	804,112	TELUS Corp.		28,192,167
	691,702	Thomson Reuters Corp.		25,987,244
	190,013	Tim Hortons, Inc.		11,351,377
	529,737	TransCanada Corp.		23,896,436
				226,996,149
		China—1.1%
	221,818	China Mobile Ltd. ADR		11,538,972
		Denmark—1.2%
	72,913	Novo Nordisk A/S ADR		12,152,410

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		France—2.0%
	381,575	Sanofi ADR	$	20,406,631
		India—2.2%
	317,572	Axis Bank Ltd. GDR		6,592,795
	100,263	HDFC Bank Ltd. ADR		3,634,534
	245,662	Infosys Ltd. ADR		13,034,825
				23,262,154
		Ireland—0.4%
	32,380	Shire PLC ADR		4,309,778
		Israel—1.5%
	416,382	Teva Pharmaceutical Industries Ltd. ADR		15,443,608
		Italy—1.1%
	255,011	Empresa Nacional de Electricidad SA ADR		11,500,996
		Japan—2.3%
	405,174	Nippon Telegraph & Telephone Corp. ADR		10,575,041
	848,518	NTT DOCOMO, Inc. ADR		13,465,981
				24,041,022
		Mexico—1.1%
	360,227	America Movil SAB de CV, Series L ADR		7,712,460
	34,231	Coca-Cola Femsa SAB de CV ADR		4,160,436
				11,872,896
		Netherlands—1.8%
	468,889	Unilever NV		18,624,271

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

14

PowerShares International Dividend Achievers™ Portfolio (PID) (continued)

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Norway—3.4%
	1,509,616	Statoil ASA ADR	$	35,672,226
		Russia—3.9%
	623,496	LUKOIL OAO ADR		40,901,338
		South Africa—2.5%
	676,158	Textainer Group Holdings Ltd.(a)		25,626,388
		Switzerland—3.5%
	273,949	Novartis AG ADR		21,244,745
	188,680	Syngenta AG ADR		15,235,910
				36,480,655
		United Kingdom—26.2%
	89,681	ARM Holdings PLC ADR		4,232,046
	706,290	AstraZeneca PLC ADR		37,334,490
	489,786	BHP Billiton PLC ADR(a)		30,190,409
	225,917	British American Tobacco PLC ADR		24,961,569
	120,849	Diageo PLC ADR		15,419,124
	530,070	GlaxoSmithKline PLC ADR		27,897,584
	1,245,233	Pearson PLC ADR		26,149,893
	473,776	Prudential PLC ADR		19,405,865
	234,105	Smith & Nephew PLC ADR(a)		15,031,882
	442,887	Unilever PLC ADR		17,976,783
	1,044,481	Vodafone Group PLC ADR		38,457,791
	156,722	WPP PLC ADR		16,697,162
				273,754,598
		United States—18.3%
	176,626	Accenture PLC, Class A		12,982,011
	138,191	ACE Ltd.		13,188,949
	101,171	Allied World Assurance Co. Holdings AG		10,955,808
	264,014	Axis Capital Holdings Ltd.		12,519,544
	121,825	Bunge Ltd.		10,005,487
	176,213	Imperial Oil Ltd.		7,691,697
	464,493	Lazard Ltd., Class A		17,952,655
	173,491	PartnerRe Ltd.		17,385,533
	152,752	Pentair Ltd.		10,248,132
	82,564	RenaissanceRe Holdings Ltd.		7,737,072
	797,804	Teekay LNG Partners LP(a)		33,108,866
	1,104,173	Teekay Offshore Partners LP(a)		37,111,255
				190,887,009
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $901,700,375)—100.0%		1,043,626,583

Number of Shares			Value
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—10.3%
	107,312,664	Invesco Liquid Assets Portfolio—Institutional Class (Cost $107,312,664)(b)(c)	$	107,312,664
		Total Investments (Cost $1,009,013,039)—110.3%		1,150,939,247
		Other assets less liabilities—(10.3)%		(107,284,800	)
		Net Assets—100.0%	$	1,043,654,447

Investment Abbreviations:

ADR—American Depositary Receipt

GDR—Global Depositary Receipt

Notes to Schedule of Investments:

^(a)  All or a portion of this security was out on loan at October 31, 2013.

^(b)  The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2G.

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

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

15

Statements of Assets and Liabilities

October 31, 2013

(Unaudited)

	PowerShares Buyback AchieversTM Portfolio (PKW)			PowerShares Dividend AchieversTM Portfolio (PFM)			PowerShares Financial Preferred Portfolio (PGF)			PowerShares High Yield Equity  Dividend AchieversTM Portfolio (PEY)			PowerShares International Dividend AchieversTM Portfolio  (PID)
Assets:
Unaffiliated investments, at value(a)	$	2,001,271,389		$	331,787,045		$	1,533,422,600		$	353,373,068		$	1,043,626,583
Affiliated investments, at value		82,350			33,905			—			52,471			107,312,664
Total investments, at value		2,001,353,739			331,820,950			1,533,422,600			353,425,539			1,150,939,247
Cash segregated as collateral		—			—			—			—			641,035
Receivables:
Shares sold		22,633,904			—			—			—			105,668
Investments sold		14,382,403			90,413			8,582,484			—			1,107,841
Dividends		1,435,029			590,959			2,747,473			683,022			1,265,700
Foreign tax reclaims		—			—			—			—			318,424
Security lending		—			—			—			—			81,044
Other assets		812			1,535			2,348			1,941			1,942
Total Assets		2,039,805,887			332,503,857			1,544,754,905			354,110,502			1,154,460,901
Liabilities:
Due to custodian		—			—			11,877,991			—			781,354
Investments purchased		33,035,823			252,892			3,951,375			—			857,490
Shares repurchased		4,083,492			—			—			—			—
Collateral upon receipt of securities in-kind		—			—			—			—			641,035
Collateral upon return of securities loaned		—			—			—			—			107,312,664
Accrued advisory fees		758,806			109,681			629,670			117,110			344,175
Accrued trustees fees		19,301			19,138			76,475			21,314			40,490
Accrued expenses		698,299			293,422			1,046,591			309,622			829,246
Total Liabilities		38,595,721			675,133			17,582,102			448,046			110,806,454
Net Assets	$	2,001,210,166		$	331,828,724		$	1,527,172,803		$	353,662,456		$	1,043,654,447
Net Assets Consist of:
Shares of beneficial interest	$	1,809,664,238		$	277,912,321		$	1,473,661,117		$	440,676,405		$	1,172,181,401
Undistributed net investment income		1,335,307			664,356			3,841,625			278,118			1,645,619
Undistributed net realized gain (loss)		(15,185,180	)		(22,534,504	)		(1,683,294	)		(139,912,476	)		(272,098,781	)
Net unrealized appreciation		205,395,801			75,786,551			51,353,355			52,620,409			141,926,208
Net Assets	$	2,001,210,166		$	331,828,724		$	1,527,172,803		$	353,662,456		$	1,043,654,447
Shares outstanding (unlimited amount authorized, $0.01 par value)		49,050,000			17,150,000			88,400,000			30,700,000			58,450,000
Net asset value	$	40.80		$	19.35		$	17.28		$	11.52		$	17.86
Market price	$	40.86		$	19.37		$	17.26		$	11.54		$	17.89
Unaffiliated investments, at cost	$	1,795,875,588		$	256,000,494		$	1,482,069,245		$	300,752,659		$	901,700,375
Affiliated investments, at cost	$	82,350		$	33,905		$	–		$	52,471		$	107,312,664
Total investments, at cost	$	1,795,957,938		$	256,034,399		$	1,482,069,245		$	300,805,130		$	1,009,013,039
(a) Includes securities on loan with an aggregate value of	$	—		$	—		$	—		$	—		$	105,480,059

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

16

Statements of Operations

For the six months ended October 31, 2013

(Unaudited)

	PowerShares Buyback AchieversTM Portfolio (PKW)			PowerShares Dividend AchieversTM Portfolio (PFM)			PowerShares Financial Preferred Portfolio (PGF)			PowerShares High Yield Equity  Dividend AchieversTM Portfolio (PEY)			PowerShares International Dividend AchieversTM Portfolio  (PID)
Investment Income:
Unaffiliated dividend income	$	8,825,498		$	4,202,855		$	56,723,928		$	7,241,676		$	16,459,750
Affiliated dividend income		20			11			238			20			23
Securities lending income		—			—			—			—			753,879
Foreign withholding tax		—			—			—			—			(1,440,910	)
Total Income		8,825,518			4,202,866			56,724,166			7,241,696			15,772,742
Expenses:
Advisory fees		2,715,335			633,159			4,141,099			672,148			1,890,380
Sub-licensing		543,067			158,290			807,338			168,037			472,594
Recapture (Note 3)		169,825			8,351			—			—			—
Accounting & administration fees		48,115			31,007			192,241			32,997			89,210
Trustees fees		13,327			8,297			28,242			8,427			16,216
Custodian & transfer agent fees		6,605			7,825			26,246			6,752			41,682
Other expenses		38,668			34,625			122,829			39,243			69,557
Total Expenses		3,534,942			881,554			5,317,995			927,604			2,579,639
Waivers		(126	)		(69	)		(1,572	)		(98	)		(143	)
Net Expenses		3,534,816			881,485			5,316,423			927,506			2,579,496
Net Investment Income		5,290,702			3,321,381			51,407,743			6,314,190			13,193,246
Realized and Unrealized Gain (Loss):
Net realized gain (loss) from:
Investment securities		1,230,284			(79,816	)		10,122,558			945,827			(784,973	)
In-kind redemptions		9,697,039			—			40,547,059			5,306,151			387,814
Foreign currencies		—			—			—			—			828
Net realized gain (loss)		10,927,323			(79,816	)		50,669,617			6,251,978			(396,331	)
Net change in unrealized appreciation (depreciation) on investment securities		166,493,638			17,490,742			(186,954,499	)		16,075,295			37,178,486
Net realized and unrealized gain (loss)		177,420,961			17,410,926			(136,284,882	)		22,327,273			36,782,155
Net increase (decrease) in net assets resulting from operations	$	182,711,663		$	20,732,307		$	(84,877,139	)	$	28,641,463		$	49,975,401

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

17

Statements of Changes in Net Assets

For the six months ended October 31, 2013 and the year ended April 30, 2013

(Unaudited)

	PowerShares Buyback AchieversTM Portfolio (PKW)						PowerShares Dividend AchieversTM Portfolio (PFM)
	October 31, 2013			April 30, 2013			October 31, 2013			April 30, 2013
Operations:
Net investment income	$	5,290,702		$	2,572,438		$	3,321,381		$	6,093,821
Net realized gain (loss)		10,927,323			13,560,070			(79,816	)		12,133,553
Net change in unrealized appreciation (depreciation)		166,493,638			30,026,839			17,490,742			26,678,396
Net increase (decrease) in net assets resulting from operations		182,711,663			46,159,347			20,732,307			44,905,770
Distributions to Shareholders from:
Net investment income		(4,337,646	)		(2,319,935	)		(3,467,149	)		(6,171,759	)
Shareholder Transactions:
Proceeds from shares sold		1,448,123,969			319,435,178			17,635,194			64,933,146
Value of shares repurchased		(43,909,152	)		(84,294,640	)		—			(59,726,392	)
Net increase (decrease) in net assets resulting from shares transactions		1,404,214,817			235,140,538			17,635,194			5,206,754
Increase (Decrease) in Net Assets		1,582,588,834			278,979,950			34,900,352			43,940,765
Net Assets:
Beginning of period		418,621,332			139,641,382			296,928,372			252,987,607
End of period	$	2,001,210,166		$	418,621,332		$	331,828,724		$	296,928,372
Undistributed net investment income at end of period	$	1,335,307		$	382,251		$	664,356		$	810,124
Changes in Shares Outstanding:
Shares sold		38,100,000			10,050,000			950,000			3,850,000
Shares repurchased		(1,150,000	)		(2,700,000	)		—			(3,650,000	)
Shares outstanding, beginning of period		12,100,000			4,750,000			16,200,000			16,000,000
Shares outstanding, end of period		49,050,000			12,100,000			17,150,000			16,200,000

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

18

PowerShares Financial Preferred Portfolio (PGF)						PowerShares High Yield Equity Dividend AchieversTM Portfolio (PEY)						PowerShares International Dividend AchieversTM Portfolio (PID)
October 31, 2013			April 30, 2013			October 31, 2013			April 30, 2013			October 31, 2013			April 30, 2013
$	51,407,743		$	111,756,026		$	6,314,190		$	12,623,486		$	13,193,246		$	18,558,027
	50,669,617			35,624,306			6,251,978			12,693,611			(396,331	)		10,566,822
	(186,954,499	)		43,703,045			16,075,295			29,287,799			37,178,486			81,786,224
	(84,877,139	)		191,083,377			28,641,463			54,604,896			49,975,401			110,911,073
	(51,582,201	)		(109,257,015	)		(6,115,958	)		(12,584,468	)		(14,555,667	)		(18,882,785	)
	71,272,077			316,357,552			36,405,924			108,648,485			132,587,961			213,885,031
	(299,091,903	)		(119,429,930	)		(27,744,801	)		(104,362,404	)		(1,694,077	)		(118,768,746	)
	(227,819,826	)		196,927,622			8,661,123			4,286,081			130,893,884			95,116,285
	(364,279,166	)		278,753,984			31,186,628			46,306,509			166,313,618			187,144,573
	1,891,451,969			1,612,697,985			322,475,828			276,169,319			877,340,829			690,196,256
$	1,527,172,803		$	1,891,451,969		$	353,662,456		$	322,475,828		$	1,043,654,447		$	877,340,829
$	3,841,625		$	4,016,083		$	278,118		$	79,886		$	1,645,619		$	3,008,040
	4,050,000			17,250,000			3,250,000			11,250,000			7,750,000			13,250,000
	(16,950,000	)		(6,600,000	)		(2,500,000	)		(10,800,000	)		(100,000	)		(7,400,000	)
	101,300,000			90,650,000			29,950,000			29,500,000			50,800,000			44,950,000
	88,400,000			101,300,000			30,700,000			29,950,000			58,450,000			50,800,000

19

Financial Highlights

PowerShares Buyback Achievers^TM Portfolio (PKW)

	Six-Months Ended October 31, 2013 (Unaudited)			Year Ended April 30,
				2013			2012			2011			2010			2009
Per Share Operating Performance:
Net asset value at beginning of period	$	34.60		$	29.40		$	27.27		$	22.36		$	16.15		$	22.64
Net investment income(a)		0.19			0.37			0.27			0.11			0.19			0.26
Net realized and unrealized gain (loss) on investments		6.16			5.18			2.12			4.87			6.29			(6.55	)
Total from investment operations		6.35			5.55			2.39			4.98			6.48			(6.29	)
Distributions to shareholders from:
Net investment income		(0.15	)		(0.35	)		(0.26	)		(0.07	)		(0.27	)		(0.20	)
Net asset value at end of period	$	40.80		$	34.60		$	29.40		$	27.27		$	22.36		$	16.15
Market price at end of period(b)	$	40.86		$	34.61		$	29.40		$	27.27		$	22.37		$	16.16
Net Asset Value Total Return(c)		18.42	%		19.08	%		8.91	%		22.34	%		40.46	%		(27.87	)%
Market Price Total Return(c)		18.56	%		19.11	%		8.91	%		22.29	%		40.43	%		(27.80	)%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	2,001,210		$	418,621		$	139,641		$	43,637		$	38,019		$	27,456
Ratio to average net assets of:
Expenses, after Waivers		0.65	%(d)(e)		0.70	%		0.71	%		0.70	%		0.70	%		0.70	%
Expenses, prior to Waivers		0.65	%(d)(e)		0.70	%		0.79	%		1.00	%		0.97	%		0.92	%
Net investment income, after Waivers		0.97	%(d)		1.21	%		1.00	%		0.49	%		0.98	%		1.39	%
Portfolio turnover rate(f)		4	%		80	%		32	%		26	%		23	%		56	%

PowerShares Dividend Achievers^TM Portfolio (PFM)

	Six-Months Ended October 31, 2013 (Unaudited)			Year Ended April 30,
				2013			2012			2011			2010			2009
Per Share Operating Performance:
Net asset value at beginning of period	$	18.33		$	15.81		$	15.29		$	13.21		$	10.30		$	16.15
Net investment income(a)		0.20			0.38			0.34			0.31			0.27			0.36
Net realized and unrealized gain (loss) on investments		1.02			2.52			0.51			2.08			2.96			(5.92	)
Total from investment operations		1.22			2.90			0.85			2.39			3.23			(5.56	)
Distributions to shareholders from:
Net investment income		(0.20	)		(0.38	)		(0.33	)		(0.31	)		(0.32	)		(0.29	)
Net asset value at end of period	$	19.35		$	18.33		$	15.81		$	15.29		$	13.21		$	10.30
Market price at end of period(b)	$	19.37		$	18.32		$	15.80		$	15.29		$	13.21		$	10.30
Net Asset Value Total Return(c)		6.75	%		18.67	%		5.78	%		18.39	%		31.76	%		(34.84	)%
Market Price Total Return(c)		6.92	%		18.68	%		5.71	%		18.39	%		31.76	%		(34.84	)%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	331,829		$	296,928		$	252,988		$	217,859		$	133,380		$	85,451
Ratio to average net assets of:
Expenses, after Waivers		0.56	%(d)		0.58	%		0.60	%		0.60	%		0.60	%		0.60	%
Expenses, prior to Waivers		0.56	%(d)		0.58	%		0.60	%		0.61	%		0.64	%		0.74	%
Net investment income, after Waivers		2.10	%(d)		2.28	%		2.28	%		2.30	%		2.28	%		3.11	%
Portfolio turnover rate(f)		2	%		18	%		20	%		11	%		18	%		31	%

^(a)  Based on average shares outstanding.

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

^(c)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment return calculated for a period of less than one period is not annualized.

^(d)  Annualized.

^(e)  In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the investment companies in which the Fund invests. Estimated investment company expenses are not expenses that are incurred directly by the Fund. They are expenses that are incurred directly by the investment companies and are deducted from the value of the funds that the Fund invests in. The effect of the estimated investment company expenses that you bear indirectly is included in the Fund’s total return.

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

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

20

Financial Highlights (continued)

PowerShares Financial Preferred Portfolio (PGF)

	Six-Months Ended October 31,  2013 (Unaudited)			Year Ended April 30,
				2013			2012			2011			2010			2009
Per Share Operating Performance:
Net asset value at beginning of period	$	18.67		$	17.79		$	18.26		$	16.97		$	11.41		$	21.17
Net investment income(a)		0.55			1.18			1.17			1.18			1.31			1.35
Net realized and unrealized gain (loss) on investments		(1.38	)		0.85			(0.42	)		1.36			5.61			(9.63	)
Total from investment operations		(0.83	)		2.03			0.75			2.54			6.92			(8.28	)
Distributions to shareholders from:
Net investment income		(0.56	)		(1.15	)		(1.17	)		(1.21	)		(1.30	)		(1.46	)
Return of capital		—			—			(0.05	)		(0.04	)		(0.06	)		(0.02	)
Total distributions		(0.56	)		(1.15	)		(1.22	)		(1.25	)		(1.36	)		(1.48	)
Net asset value at end of period	$	17.28		$	18.67		$	17.79		$	18.26		$	16.97		$	11.41
Market price at end of period(b)	$	17.26		$	18.70		$	17.83		$	18.28		$	16.93		$	11.41
Net Asset Value Total Return(c)		(4.47	)%		11.78	%		4.56	%		15.57	%		62.16	%		(39.56	)%
Market Price Total Return(c)		(4.74	)%		11.71	%		4.68	%		15.97	%		61.76	%		(39.82	)%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	1,527,173		$	1,891,452		$	1,612,698		$	1,832,516		$	1,714,824		$	773,644
Ratio to average net assets of:
Expenses, after Waivers		0.64	%(d)		0.64	%		0.66	%		0.66	%		0.65	%		0.69	%
Expenses, prior to Waivers		0.64	%(d)		0.64	%		0.66	%		0.66	%		0.65	%		0.68	%
Net investment income, after Waivers		6.21	%(d)		6.47	%		6.76	%		6.75	%		8.30	%		11.49	%
Portfolio turnover rate(e)		17	%		18	%		6	%		26	%		23	%		45	%

PowerShares High Yield Equity Dividend Achievers^TM Portfolio (PEY)

	Six-Months Ended October 31, 2013 (Unaudited)			Year Ended April 30,
				2013			2012			2011			2010			2009
Per Share Operating Performance:
Net asset value at beginning of period	$	10.77		$	9.36		$	9.06		$	8.44		$	6.12		$	11.36
Net investment income(a)		0.21			0.42			0.35			0.34			0.32			0.43
Net realized and unrealized gain (loss) on investments		0.74			1.41			0.29			0.63			2.35			(5.21	)
Total from investment operations		0.95			1.83			0.64			0.97			2.67			(4.78	)
Distributions to shareholders from:
Net investment income		(0.20	)		(0.42	)		(0.34	)		(0.34	)		(0.33	)		(0.43	)
Return of capital		—			—			—			(0.01	)		(0.02	)		(0.03	)
Total distributions		(0.20	)		(0.42	)		(0.34	)		(0.35	)		(0.35	)		(0.46	)
Net asset value at end of period	$	11.52		$	10.77		$	9.36		$	9.06		$	8.44		$	6.12
Market price at end of period(b)	$	11.54		$	10.76		$	9.36		$	9.06		$	8.44		$	6.12
Net Asset Value Total Return(c)		8.94	%		20.16	%		7.37	%		11.91	%		44.59	%		(42.88	)%
Market Price Total Return(c)		9.23	%		20.05	%		7.37	%		11.91	%		44.58	%		(42.88	)%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	353,662		$	322,476		$	276,169		$	208,471		$	127,424		$	86,846
Ratio to average net assets of:
Expenses, after Waivers		0.55	%(d)		0.57	%		0.60	%		0.60	%		0.60	%		0.60	%
Expenses, prior to Waivers		0.55	%(d)		0.57	%		0.60	%		0.62	%		0.65	%		0.62	%
Net investment income, after Waivers		3.76	%(d)		4.31	%		3.88	%		4.02	%		4.42	%		5.24	%
Portfolio turnover rate(e)		5	%		32	%		35	%		44	%		57	%		77	%

^(a)  Based on average shares outstanding.

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

^(c)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment return calculated for a period of less than one period is not annualized.

^(d)  Annualized.

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

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

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Financial Highlights (continued)

PowerShares International Dividend Achievers^TM Portfolio (PID)

	Six-Months Ended October 31,  2013 (Unaudited)			Year Ended April 30,
				2013			2012			2011			2010			2009
Per Share Operating Performance:
Net asset value at beginning of period	$	17.27		$	15.35		$	16.85		$	14.26		$	10.14		$	19.63
Net investment income(a)		0.24			0.40			0.48			0.47			0.35			0.52
Net realized and unrealized gain (loss) on investments		0.62			1.93			(1.49	)		2.59			4.24			(9.46	)
Total from investment operations		0.86			2.33			(1.01	)		3.06			4.59			(8.94	)
Distributions to shareholders from:
Net investment income		(0.27	)		(0.41	)		(0.49	)		(0.47	)		(0.47	)		(0.55	)
Net asset value at end of period	$	17.86		$	17.27		$	15.35		$	16.85		$	14.26		$	10.14
Market price at end of period(b)	$	17.89		$	17.31		$	15.37		$	16.89		$	14.26		$	10.15
Net Asset Value Total Return(c)		5.07	%		15.63	%		(5.87	)%		21.95	%		45.77	%		(46.44	)%
Market Price Total Return(c)		5.00	%		15.75	%		(5.97	)%		22.23	%		45.62	%		(46.30	)%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	1,043,654		$	877,341		$	690,196		$	550,282		$	427,783		$	256,584
Ratio to average net assets of:
Expenses, after Waivers		0.55	%(d)		0.56	%		0.55	%		0.58	%		0.57	%		0.57	%
Expenses, prior to Waivers		0.55	%(d)		0.56	%		0.56	%		0.58	%		0.57	%		0.57	%
Net investment income, after Waivers		2.79	%(d)		2.57	%		3.20	%		3.20	%		2.65	%		3.87	%
Portfolio turnover rate(e)		13	%		46	%		33	%		42	%		63	%		50	%

^(a)  Based on average shares outstanding.

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

^(c)  Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment return calculated for a period of less than one period is not annualized.

^(d)  Annualized.

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

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

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Notes to Financial Statements

PowerShares Exchange-Traded Fund Trust

October 31, 2013

(Unaudited)

Note 1. Organization

PowerShares Exchange-Traded Fund Trust (the “Trust”) was organized as a Massachusetts business trust on June 9, 2000 and is authorized to have multiple series of portfolios. The Trust is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As of October 31, 2013, the Trust offered fifty-five portfolios. This report includes the following portfolios:

Full Name	Short Name
PowerShares Buyback AchieversTM Portfolio (PKW)	“Buyback AchieversTM Portfolio”
PowerShares Dividend AchieversTM Portfolio (PFM)	“Dividend AchieversTM Portfolio”
PowerShares Financial Preferred Portfolio (PGF)	“Financial Preferred Portfolio”
PowerShares High Yield Equity Dividend AchieversTM Portfolio (PEY)	“High Yield Equity Dividend AchieversTM Portfolio”
PowerShares International Dividend AchieversTM Portfolio (PID)	“International Dividend AchieversTM Portfolio”

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

The market prices of each Fund’s Shares may differ to some degree from the Fund’s net asset value (“NAV”). Unlike conventional mutual funds, each Fund issues and redeems Shares on a continuous basis, at NAV, only in a large specified number of Shares, each called a “Creation Unit.” Creation Units are issued and redeemed generally in-kind for securities included in each Fund’s 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 generally correspond (before fees and expenses) to the price and yield of its respective index listed below (each, an “Underlying Index”):

Fund	Index
Buyback AchieversTM Portfolio	NASDAQ US Buyback AchieversTM Index
Dividend AchieversTM Portfolio	NASDAQ US Broad Dividend AchieversTM Index
Financial Preferred Portfolio	Wells Fargo® Hybrid & Preferred Securities Financial Index
High Yield Equity Dividend AchieversTM Portfolio	NASDAQ US Dividend AchieversTM 50 Index
International Dividend AchieversTM Portfolio	NASDAQ International Dividend AchieversTM Index

Note 2. Significant Accounting Policies

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

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 and closed-end registered investment companies that do not trade on an exchange are valued at the end of day NAV per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.

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

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

Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.

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

Index 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 buy or sell a security unless that security is added or removed, respectively, from its respective Underlying Index, even if that security generally is underperforming.

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

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

Non-Diversified Fund Risk. Buyback Achievers^TM Portfolio and Financial Preferred Portfolio are non-diversified and can invest a greater portion of assets in securities of individual issuers than diversified funds. As a result, changes in the market value of a single investment could cause greater fluctuations in Share price than would occur in a diversified fund. This may increase a Funds’ volatility and cause the performance of a relatively small number of issuers to have a greater impact on the Funds’ performance.

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

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

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

Dividend Paying Security Risk. Dividend Achievers^TM Portfolio, High Yield Equity Dividend Achievers^TM Portfolio and International Dividend Achievers^TM Portfolio invest in securities that pay high dividends. As a group, these securities can fall out of favor with the market, causing such companies to underperform companies that do not pay high dividends. Also, changes in the dividend policies of the companies in an Underlying Index and the capital resources available for such companies’ dividend payments may affect a Fund.

Foreign Securities Risk. For Financial Preferred Portfolio and International Dividend Achievers^TM Portfolio, investments in foreign securities involve risks that are in addition to the risks associated with domestic securities. 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 often are subject to less stringent requirements regarding accounting, auditing, financial reporting and record-keeping than are U.S. companies. Therefore, not all material information regarding these companies will be available.

In addition, securities of foreign issuers may be less liquid than comparable securities of U.S. issuers and, as such, their price changes may be more volatile. Furthermore, foreign exchanges and broker-dealers generally are subject to less government and exchange scrutiny and regulation than their U.S. counterparts. In addition, differences in clearance and settlement procedures in foreign markets may cause delays in settlement of a Fund’s trades effected in those markets and could result in losses to a Fund due to subsequent declines in the value of the securities subject to the trades. Depositary receipts also involve substantially identical risks to those associated with investments in foreign securities. Additionally, the issuers of certain depositary receipts, particularly unsponsored or unregistered depositary receipts, have no obligation to distribute shareholder communications to the holders of such receipts or to pass through to them any voting rights with respect to the deposited securities.

High Yield Securities Risk. With respect to Financial Preferred Portfolio and High Yield Equity Dividend Achievers^TM Portfolio, investments in high yield securities typically involve greater risk and are less liquid than higher grade issues. Changes in general economic conditions, changes in the financial condition of the issuers and changes in interest rates may adversely impact the ability of issuers of high yield securities to make timely payments of interest and principal.

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

C. Federal Income Taxes

Each Fund intends to comply with the provisions of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), applicable to regulated investment companies and to distribute substantially all of the Fund’s taxable earnings to its shareholders. As such, the Funds will not be subject to federal income taxes on otherwise taxable income (including net realized gains) that is distributed to the shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.

Income and capital gain distributions are determined in accordance with federal income tax regulations, which may differ from GAAP. These timing 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.

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

D. Investment Transactions and Investment Income

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

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

E. Expenses

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

Each Fund is responsible for all of its expenses, including the investment advisory fees, costs of transfer agency, custody, fund administration, legal, audit and other services, interest, taxes, brokerage commissions and other expenses connected with executions of portfolio transactions, sub-licensing fees related to its respective Underlying Index, any distribution fees or expenses, litigation expenses, fees payable to the Trust’s Board members who are not “interested persons” (as defined in the 1940 Act) of the Trust (the “Independent Trustees”) or the Adviser, expenses incurred in connection with the Board members’ services, including travel expenses and legal fees of counsel for the Independent Trustees, acquired fund fees and expenses, if any, and extraordinary expenses.

To the extent a Fund invests in other investment companies, the expenses shown in the accompanying financial statements reflect the expenses of the Fund and do not include any expenses of the investment companies in which it invests. The effects of such investment companies’ expenses are included in the realized and unrealized gain or loss on the investments in the investment companies.

F. Dividends and Distributions to Shareholders

Each Fund (except for High Yield Dividend Achievers^TM Portfolio and Financial Preferred Portfolio, which declare and pay dividends, if any, monthly) declares and pays dividends from net investment income, if any, to its shareholders quarterly and records such dividends on ex-dividend date. Generally, each Fund distributes net realized taxable capital gains, if any, annually in cash and records them on ex-dividend date. Such distributions on a tax basis are determined in conformity with federal income tax regulations, which may differ from GAAP. Distributions in excess of tax basis earnings and profits, if any, are reported in such Fund’s financial statements as a tax return of capital at fiscal period-end.

G. Securities Lending

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

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 for the selection and ongoing monitoring of the Funds’ investments, managing the Funds’ business affairs and providing certain clerical, bookkeeping and other administrative services. Each Fund has agreed to pay the Adviser an annual fee of 0.40% of each Fund’s average daily net assets, except for Buyback Achievers^TM Portfolio and Financial Preferred Portfolio, each of which pay the Adviser an annual fee of 0.50% of each Fund’s average daily net assets.

The Adviser has entered into an Amended and Restated Excess Expense Agreement (the “Expense Agreement”) with the Trust, pursuant to which the Adviser has agreed to waive fees and/or pay Fund expenses to the extent necessary to prevent the operating expenses (excluding interest expenses, brokerage commissions and other trading expenses, sub-licensing fees, offering costs, taxes,

26

acquired fund fees and expenses, if any, and extraordinary expenses) of each Fund (except for Buyback Achievers^TM Portfolio and Financial Preferred Portfolio) from exceeding 0.50% of the Fund’s average daily net assets per year (0.60% of the Fund’s average daily net assets per year for the Buyback Achievers^TM Portfolio and Financial Preferred Portfolio) (the “Expense Cap”), through at least August 31, 2014. Offering costs excluded from the Expense Cap are: (a) initial legal fees pertaining to the Funds’ Shares offered for sale; (b) initial Securities and Exchange Commission and state registration fees; and (c) initial fees paid to be listed on an exchange. Unless the Adviser continues the fee waiver agreement, it will terminate on August 31, 2014. The fee waiver agreement cannot be terminated during its term. For each portfolio, the Adviser did not waive fees and/or pay Fund expenses during the period under this expense limitation.

Further, the Adviser has contractually agreed, through at least August 31, 2015, to waive the advisory fee payable by each Fund in an amount equal to 100% of the net advisory fees the Adviser’s affiliate receives from the affiliated money market funds on investments by a Fund (excluding investments of cash collateral from securities lending) in such affiliated money market funds.

For the six months ended October 31, 2013, the Adviser waived fees and/or paid Fund expenses for each Fund, in the following amounts:

Buyback Achievers™ Portfolio	$	126
Dividend Achievers™ Portfolio		69
Financial Preferred Portfolio		1,572
High Yield Equity Dividend Achievers™ Portfolio		98
International Dividend Achievers™ Portfolio		143

The Expense Agreement provides that the fees waived or expenses borne by the Adviser are subject to recapture by the Adviser for up to three years from the date the fee was waived or expense was borne by the Adviser, but no recapture payment will be made by a Fund if it would result in the Fund exceeding its Expense Cap as specified above.

The Trust has entered into a Distribution Agreement with Invesco Distributors, Inc. (the “Distributor”), which serves as the distributor of Creation Units for each Fund. The Distributor does not maintain a secondary market in the Shares. The Funds are not charged any fees pursuant to the Distribution Agreement. The Distributor is an affiliate of the Adviser.

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

Fund	Licensor
Buyback AchieversTM Portfolio	NASDAQ OMX Group, Inc.
Dividend AchieversTM Portfolio	NASDAQ OMX Group, Inc.
Financial Preferred Portfolio	Wells Fargo Securities, LLC
High Yield Equity Dividend AchieversTM Portfolio	NASDAQ OMX Group, Inc.
International Dividend AchieversTM Portfolio	NASDAQ OMX Group, Inc.

Each Underlying Index name trademark is owned by its respective Licensor. These trademarks have been licensed to the Adviser for use with the Funds. Each Fund is entitled to use its Underlying Index pursuant to the Trust’s sub-licensing agreement with the Adviser. The Funds are required to pay the sub-licensing fees that are shown on the Statements of Operations. The Funds are not sponsored, endorsed, sold or promoted by the Licensors, and the Licensors make no representation regarding the advisability of investing in any of these Funds.

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

Note 4. 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.

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As of October 31, 2013, the securities in each Fund were valued based on Level 1 inputs (see the Schedule of Investments for security categories). The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

Note 5. Tax Information

The amount and character of income and gains to be distributed are determined in accordance with federal income tax regulations, which may differ from GAAP. Reclassifications are made to the Funds’ capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under federal income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Funds’ 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. Capital losses generated in years beginning after December 22, 2010 can be carried forward for an unlimited period, whereas previous losses expire in 8 tax years. Capital losses with an expiration period may not be used to offset capital gains until all net capital losses without an expiration date have been utilized. Capital loss carryforwards with no expiration date will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The ability to utilize capital loss carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.

The following Funds had a capital loss carryforward as of April 30, 2013, which expires as follows:

													Post-effective no expiration
	2014		2015		2016		2017		2018		2019		Short-term		Long-term		Total*		Utilized
Buyback AchieversTM Portfolio	$	—	$	—	$	8,126,181	$	800,254	$	12,142,749	$	2,107,645	$	—	$	—	$	23,176,829	$	1,757,404
Dividend AchieversTM Portfolio		7,896		—		50,943		1,716,151		14,632,363		2,339,194		320,395		591,288		19,658,230		—
Financial Preferred Portfolio(1)		—		—		24,467,971		9,034,558		7,354,935		—		—		—		40,857,464		7,550,854
High Yield Equity Dividend AchieversTM Portfolio		1,616,610		7,009,598		5,162,362		81,487,358		44,815,128		2,187,574		—		—		142,278,630		735,489
International Dividend AchieversTM Portfolio		—		148,582		1,975,339		59,472,841		145,514,837		11,745,409		28,700,063		12,185,450		259,742,521		—

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

⁽¹⁾  Tax year-end and carryforward expiration is October 31.

Note 6. Investment Transactions

For the six-month period ended October 31, 2013, 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
Buyback Achievers™ Portfolio	$	44,488,809	$	41,649,976
Dividend Achievers™ Portfolio		9,404,017		6,157,409
Financial Preferred Portfolio		286,605,923		341,580,173
High Yield Equity Dividend Achievers™ Portfolio		16,450,233		16,652,663
International Dividend Achievers™ Portfolio		121,297,742		118,889,896

For the six-month period ended October 31, 2013, in-kind transactions associated with creations and redemptions were as follows:

	Securities Received		Securities Delivered
Buyback Achievers™ Portfolio	$	1,445,733,835	$	43,354,767
Dividend Achievers™ Portfolio		14,474,686		—
Financial Preferred Portfolio		58,684,657		264,370,361
High Yield Equity Dividend Achievers™ Portfolio		36,395,645		27,309,419
International Dividend Achievers™ Portfolio		130,866,565		1,693,852

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

28

At October 31, 2013, 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)
Buyback Achievers™ Portfolio	$	1,797,725,397	$	203,628,342	$	212,548,207	$	(8,919,865	)
Dividend Achievers™ Portfolio		258,641,814		73,179,136		76,671,105		(3,491,969	)
Financial Preferred Portfolio(1)		1,501,301,594		32,121,006		111,657,821		(79,536,815	)
High Yield Equity Dividend Achievers™ Portfolio		302,793,360		50,632,179		54,150,977		(3,518,798	)
International Dividend Achievers™ Portfolio		1,015,042,465		135,896,782		148,943,820		(13,047,038	)

⁽¹⁾  Tax year-end is October 31.

Note 7. Trustees’ Fees

The Funds compensate each Independent Trustee. The Trustee who is an “interested person” (the “Non-Independent Trustee”) of the Trust does not receive any Trustees’ fees.

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

Note 8. Capital

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

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

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

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.

29

(This Page Intentionally Left Blank)

Proxy Voting Policies and Procedures

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

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

Quarterly Portfolios

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

Frequency Distribution of Discounts and Premiums

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

©2013 Invesco PowerShares Capital Management LLC			P-PS-SAR-1
3500 Lacey Road, Suite 700 Downers Grove, IL 60515
invescopowershares.com    800.983.0903		@PowerShares

October 31, 2013

2013 Semi-Annual Report to Shareholders

PBE	PowerShares Dynamic Biotechnology & Genome Portfolio
PKB	PowerShares Dynamic Building & Construction Portfolio
PXE	PowerShares Dynamic Energy Exploration & Production Portfolio
PBJ	PowerShares Dynamic Food & Beverage Portfolio
PEJ	PowerShares Dynamic Leisure and Entertainment Portfolio
PBS	PowerShares Dynamic Media Portfolio
PXQ	PowerShares Dynamic Networking Portfolio
PXJ	PowerShares Dynamic Oil & Gas Services Portfolio
PJP	PowerShares Dynamic Pharmaceuticals Portfolio
PMR	PowerShares Dynamic Retail Portfolio
PSI	PowerShares Dynamic Semiconductors Portfolio
PSJ	PowerShares Dynamic Software Portfolio

Table of Contents

Fees and Expenses	3
Industry Portfolios
Schedules of Investments
PowerShares Dynamic Biotechnology & Genome Portfolio (PBE)	5
PowerShares Dynamic Building & Construction Portfolio (PKB)	6
PowerShares Dynamic Energy Exploration & Production Portfolio (PXE)	8
PowerShares Dynamic Food & Beverage Portfolio (PBJ)	9
PowerShares Dynamic Leisure and Entertainment Portfolio (PEJ)	10
PowerShares Dynamic Media Portfolio (PBS)	12
PowerShares Dynamic Networking Portfolio (PXQ)	14
PowerShares Dynamic Oil & Gas Services Portfolio (PXJ)	15
PowerShares Dynamic Pharmaceuticals Portfolio (PJP)	16
PowerShares Dynamic Retail Portfolio (PMR)	17
PowerShares Dynamic Semiconductors Portfolio (PSI)	19
PowerShares Dynamic Software Portfolio (PSJ)	20
Statements of Assets and Liabilities	22
Statements of Operations	24
Statements of Changes in Net Assets	26
Financial Highlights	30
Notes to Financial Statements	36

2

Fees and Expenses

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

The example is based on an investment of $1,000 invested at the beginning of the period and held through the six-month period ended October 31, 2013.

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 May 1, 2013		Ending Account Value October 31, 2013		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During the Six-Month Period(1)
PowerShares Dynamic Biotechnology & Genome Portfolio (PBE)
Actual	$	1,000.00	$	1,242.05		0.61	%	$	3.45
Hypothetical (5% return before expenses)		1,000.00		1,022.13		0.61			3.11
PowerShares Dynamic Building & Construction Portfolio (PKB)
Actual		1,000.00		1,059.04		0.63			3.27
Hypothetical (5% return before expenses)		1,000.00		1,022.03		0.63			3.21
PowerShares Dynamic Energy Exploration & Production Portfolio (PXE)
Actual		1,000.00		1,111.47		0.65			3.46
Hypothetical (5% return before expenses)		1,000.00		1,021.93		0.65			3.31
PowerShares Dynamic Food & Beverage Portfolio (PBJ)
Actual		1,000.00		1,107.44		0.63			3.35
Hypothetical (5% return before expenses)		1,000.00		1,022.03		0.63			3.21
PowerShares Dynamic Leisure and Entertainment Portfolio (PEJ)
Actual		1,000.00		1,216.24		0.63			3.52
Hypothetical (5% return before expenses)		1,000.00		1,022.03		0.63			3.21
PowerShares Dynamic Media Portfolio (PBS)
Actual		1,000.00		1,199.46		0.63			3.49
Hypothetical (5% return before expenses)		1,000.00		1,022.03		0.63			3.21
PowerShares Dynamic Networking Portfolio (PXQ)
Actual		1,000.00		1,184.38		0.63			3.47
Hypothetical (5% return before expenses)		1,000.00		1,022.03		0.63			3.21
PowerShares Dynamic Oil & Gas Services Portfolio (PXJ)
Actual		1,000.00		1,167.31		0.62			3.39
Hypothetical (5% return before expenses)		1,000.00		1,022.08		0.62			3.16

3

Fees and Expenses (continued)

	Beginning Account Value May 1, 2013		Ending Account Value October 31, 2013		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During the Six-Month Period(1)
PowerShares Dynamic Pharmaceuticals Portfolio (PJP)
Actual	$	1,000.00	$	1,180.69		0.57	%	$	3.13
Hypothetical (5% return before expenses)		1,000.00		1,022.33		0.57			2.91
PowerShares Dynamic Retail Portfolio (PMR)
Actual		1,000.00		1,191.25		0.63			3.48
Hypothetical (5% return before expenses)		1,000.00		1,022.03		0.63			3.21
PowerShares Dynamic Semiconductors Portfolio (PSI)
Actual		1,000.00		1,176.00		0.62			3.40
Hypothetical (5% return before expenses)		1,000.00		1,022.08		0.62			3.16
PowerShares Dynamic Software Portfolio (PSJ)
Actual		1,000.00		1,115.37		0.63			3.36
Hypothetical (5% return before expenses)		1,000.00		1,022.03		0.63			3.21

⁽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 October 31, 2013. Expenses are calculated by multiplying the Fund’s annualized expense ratio by the average account value of the period, then multiplying the result by 184/365.

4

Portfolio Composition

PowerShares Dynamic Biotechnology & Genome Portfolio (PBE)

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of October 31, 2013 (Unaudited)
Biotechnology	67.0
Life Sciences Tools & Services	21.6
Specialty Chemicals	5.1
Health Care Supplies	3.4
Electronic Equipment & Instruments	3.0
Money Market Fund Plus Other Assets Less Liabilities	(0.1	)

Schedule of Investments^(a)

PowerShares Dynamic Biotechnology & Genome Portfolio (PBE)

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks—100.1%
		Biotechnology—67.0%
	204,161	Acorda Therapeutics, Inc.(b)	$	6,249,368
	117,366	Alexion Pharmaceuticals, Inc.(b)		14,430,150
	116,095	Amgen, Inc.		13,467,020
	1,076,224	Arena Pharmaceuticals, Inc.(b)		4,724,623
	59,372	Biogen Idec, Inc.(b)		14,498,049
	108,879	Cubist Pharmaceuticals, Inc.(b)		6,750,498
	392,412	Emergent Biosolutions, Inc.(b)		7,663,806
	209,846	Gilead Sciences, Inc.(b)		14,896,967
	246,290	Insys Therapeutics, Inc.(b)		9,824,508
	317,469	Intrexon Corp.(b)		6,730,343
	267,077	Isis Pharmaceuticals, Inc.(b)		8,885,652
	122,034	Medivation, Inc.(b)		7,304,955
	263,607	Myriad Genetics, Inc.(b)		6,426,739
	473,479	Neurocrine Biosciences, Inc.(b)		4,469,642
	395,335	Osiris Therapeutics, Inc.(b)		5,261,909
	868,840	PDL BioPharma, Inc.		7,028,916
	52,195	Regeneron Pharmaceuticals, Inc.(b)		15,011,282
	698,946	Sangamo BioSciences, Inc.(b)		6,549,124
	162,703	Seattle Genetics, Inc.(b)		6,285,217
	97,287	United Therapeutics Corp.(b)		8,611,845
				175,070,613
		Electronic Equipment & Instruments—3.0%
	88,127	FEI Co.		7,850,353
		Health Care Supplies—3.4%
	191,334	Neogen Corp.(b)		8,843,457
		Life Sciences Tools & Services—21.6%
	344,241	Bruker Corp.(b)		7,039,729
	162,479	Illumina, Inc.(b)		15,193,411
	169,969	Life Technologies Corp.(b)		12,800,365
	339,832	Luminex Corp.(b)		6,626,724
	89,002	Techne Corp.		7,777,885
	69,788	Waters Corp.(b)		7,043,005
				56,481,119

Number of Shares			Value
		Common Stocks (continued)
		Specialty Chemicals—5.1%
	153,358	Sigma-Aldrich Corp.	$	13,254,732
		Total Common Stocks (Cost $213,861,867)		261,500,274
		Money Market Fund—0.0%
	125,541	Premier Portfolio—Institutional Class(c) (Cost $125,541)		125,541
		Total Investments (Cost $213,987,408)—100.1%		261,625,815
		Other assets less liabilities—(0.1)%		(133,079	)
		Net Assets—100.0%	$	261,492,736

Notes to Schedule of Investments:

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

^(b)  Non-income producing security.

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

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

5

Portfolio Composition

PowerShares Dynamic Building & Construction Portfolio (PKB)

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of October 31, 2013 (Unaudited)
Construction & Engineering	31.7
Home Improvement Retail	12.6
Building Products	11.2
Industrial Machinery	10.4
Construction Materials	10.2
Forest Products	8.2
Construction & Farm Machinery & Heavy Trucks	5.1
Home Furnishings	5.1
Real Estate Development	2.9
Heavy Electrical Equipment	2.6
Money Market Funds Plus Other Assets Less Liabilities	(0.0	)

Schedule of Investments^(a)

PowerShares Dynamic Building & Construction Portfolio (PKB)

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks—100.0%
		Building Products—11.2%
	55,448	A.O. Smith Corp.	$	2,863,889
	99,980	AAON, Inc.		2,700,460
	66,864	American Woodmark Corp.(b)		2,268,027
	33,967	Lennox International, Inc.		2,651,464
				10,483,840
		Construction & Engineering—31.7%
	80,043	AECOM Technology Corp.(b)		2,543,766
	154,405	Comfort Systems USA, Inc.		2,876,565
	62,028	EMCOR Group, Inc.		2,298,758
	67,387	Fluor Corp.		5,001,463
	73,344	Jacobs Engineering Group, Inc.(b)		4,460,782
	78,079	KBR, Inc.		2,696,849
	73,316	MasTec, Inc.(b)		2,343,912
	163,524	Quanta Services, Inc.(b)		4,940,060
	47,085	URS Corp.		2,552,949
				29,715,104
		Construction & Farm Machinery & Heavy Trucks—5.1%
	116,691	Manitowoc Co., Inc. (The)		2,270,807
	51,902	Oshkosh Corp.(b)		2,470,016
				4,740,823
		Construction Materials—10.2%
	272,384	Headwaters, Inc.(b)		2,377,912
	24,272	Martin Marietta Materials, Inc.		2,380,841
	89,422	Vulcan Materials Co.		4,788,548
				9,547,301

Number of Shares			Value
		Common Stocks (continued)
		Forest Products—8.2%
	100,938	Boise Cascade Co.(b)	$	2,585,022
	38,759	Deltic Timber Corp.		2,475,925
	155,850	Louisiana-Pacific Corp.(b)		2,651,009
				7,711,956
		Heavy Electrical Equipment—2.6%
	75,236	Babcock & Wilcox Co. (The)		2,423,352
		Home Furnishings—5.1%
	36,385	Mohawk Industries, Inc.(b)		4,818,102
		Home Improvement Retail—12.6%
	57,380	Home Depot, Inc. (The)		4,469,328
	93,285	Lowe’s Cos., Inc.		4,643,727
	23,447	Lumber Liquidators Holdings, Inc.(b)		2,677,413
				11,790,468
		Industrial Machinery—10.4%
	30,833	Hyster-Yale Materials Handling, Inc.		2,418,540
	72,279	Ingersoll-Rand PLC		4,881,001
	17,276	Valmont Industries, Inc.		2,427,278
				9,726,819
		Real Estate Development—2.9%
	22,818	Howard Hughes Corp. (The)(b)		2,670,847
		Total Common Stocks (Cost $83,925,111)		93,628,612

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

6

PowerShares Dynamic Building & Construction Portfolio (PKB) (continued)

October 31, 2013

(Unaudited)

Number of Shares			Value
		Money Market Fund—0.1%
	79,842	Premier Portfolio—Institutional Class(c) (Cost $79,842)	$	79,842
		Total Investments (Cost $84,004,953)—100.1%		93,708,454
		Other assets less liabilities—(0.1)%		(82,436	)
		Net Assets—100.0%	$	93,626,018

Notes to Schedule of Investments:

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

^(b)  Non-income producing security.

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

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

7

Portfolio Composition

PowerShares Dynamic Energy Exploration & Production Portfolio (PXE)

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of October 31, 2013 (Unaudited)
Oil & Gas Exploration & Production	62.7
Oil & Gas Refining & Marketing	34.7
Gas Utilities	2.6
Money Market Fund Plus Other Assets Less Liabilities	(0.0	)

Schedule of Investments^(a)

PowerShares Dynamic Energy Exploration & Production Portfolio (PXE)

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Gas Utilities—2.6%
	117,159	Questar Corp.	$	2,771,982
		Oil & Gas Exploration & Production—62.7%
	51,500	Anadarko Petroleum Corp.		4,907,435
	54,952	Apache Corp.		4,879,738
	62,408	Berry Petroleum Co., Class A		2,979,982
	74,963	Carrizo Oil & Gas, Inc.(b)		3,286,378
	30,641	Cimarex Energy Co.		3,228,029
	71,015	ConocoPhillips		5,205,399
	148,534	Denbury Resources, Inc.(b)		2,820,661
	38,733	Energen Corp.		3,033,569
	29,981	EOG Resources, Inc.		5,348,610
	136,749	Marathon Oil Corp.		4,821,770
	44,141	Murphy Oil Corp.		2,662,585
	76,643	Noble Energy, Inc.		5,742,860
	65,511	Oasis Petroleum, Inc.(b)		3,488,461
	498,675	SandRidge Energy, Inc.(b)		3,161,599
	37,592	SM Energy Co.		3,331,027
	93,730	Stone Energy Corp.(b)		3,267,428
	50,888	Whiting Petroleum Corp.(b)		3,403,898
				65,569,429
		Oil & Gas Refining & Marketing—34.7%
	206,780	Alon USA Energy, Inc. (Israel)		2,497,902
	162,127	Alon USA Partners LP (Israel)		2,208,170
	59,977	CVR Energy, Inc.		2,382,287
	94,347	CVR Refining LP		2,296,406
	103,304	Delek US Holdings, Inc. (Israel)		2,639,417
	57,736	HollyFrontier Corp.		2,659,320
	64,935	Marathon Petroleum Corp.		4,653,242
	123,293	Northern Tier Energy LP		2,867,795
	116,894	PBF Energy, Inc., Class A		3,077,819
	55,719	Tesoro Corp.		2,724,102
	132,517	Valero Energy Corp.		5,455,725

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Oil & Gas Refining & Marketing (continued)
	87,563	Western Refining, Inc.	$	2,825,658
				36,287,843
		Total Common Stocks and Other Equity Interests (Cost $99,078,115)		104,629,254
		Money Market Fund—0.0%
	45,921	Premier Portfolio—Institutional Class(c) (Cost $45,921)		45,921
		Total Investments (Cost $99,124,036)—100.0%		104,675,175
		Other assets less liabilities—(0.0)%		(50,228	)
		Net Assets—100.0%	$	104,624,947

Notes to Schedule of Investments:

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

^(b)  Non-income producing security.

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

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

8

Portfolio Composition

PowerShares Dynamic Food & Beverage Portfolio (PBJ)

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of October 31, 2013 (Unaudited)
Packaged Foods & Meats	48.2
Restaurants	11.6
Agricultural Products	10.8
Food Retail	10.8
Food Distributors	7.8
Brewers	5.7
Soft Drinks	5.0
Money Market Fund Plus Other Assets Less Liabilities	0.1

Schedule of Investments^(a)

PowerShares Dynamic Food & Beverage Portfolio (PBJ)

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks—99.9%
		Agricultural Products—10.8%
	312,630	Archer-Daniels-Midland Co.	$	12,786,567
	79,232	Bunge Ltd.		6,507,324
	208,047	Fresh Del Monte Produce, Inc.		5,531,970
				24,825,861
		Brewers—5.7%
	28,343	Boston Beer Co., Inc. (The), Class A(b)		6,507,269
	123,066	Molson Coors Brewing Co., Class B		6,645,564
				13,152,833
		Food Distributors—7.8%
	91,444	Andersons, Inc. (The)		6,783,316
	343,780	Sysco Corp.		11,117,845
				17,901,161
		Food Retail—10.8%
	240,267	Ingles Markets, Inc., Class A		6,201,291
	300,758	Kroger Co. (The)		12,884,473
	837,417	SUPERVALU, Inc.(b)		5,887,042
				24,972,806
		Packaged Foods & Meats—48.2%
	486,964	Chiquita Brands International, Inc.(b)		5,040,077
	177,537	ConAgra Foods, Inc.		5,647,452
	313,378	Dean Foods Co.(b)		6,110,871
	288,807	Flowers Foods, Inc.		7,318,369
	223,194	General Mills, Inc.		11,253,442
	69,569	Green Mountain Coffee Roasters, Inc.(b)		4,369,629
	119,717	Hershey Co. (The)		11,880,715
	78,061	J & J Snack Foods Corp.		6,679,680
	56,568	J.M. Smucker Co. (The)		6,290,927
	181,317	Kellogg Co.		11,468,300
	212,630	Kraft Foods Group, Inc.		11,562,819
	391,671	Pilgrim’s Pride Corp. (Brazil)(b)		5,549,978

Number of Shares			Value
		Common Stocks (continued)
		Packaged Foods & Meats (continued)
	91,699	Sanderson Farms, Inc.	$	5,796,294
	200,210	Tootsie Roll Industries, Inc.		6,406,720
	207,404	Tyson Foods, Inc., Class A		5,738,869
				111,114,142
		Restaurants—11.6%
	146,627	AFC Enterprises, Inc.(b)		6,536,632
	97,729	Domino’s Pizza, Inc.		6,553,707
	152,046	Jack in the Box, Inc.(b)		6,185,231
	304,475	Krispy Kreme Doughnuts, Inc.(b)		7,386,563
				26,662,133
		Soft Drinks—5.0%
	138,063	PepsiCo, Inc.		11,609,718
		Total Common Stocks (Cost $216,242,936)		230,238,654
		Money Market Fund—0.1%
	157,878	Premier Portfolio—Institutional Class(c) (Cost $157,878)		157,878
		Total Investments (Cost $216,400,814)—100.0%		230,396,532
		Other assets less liabilities—(0.0)%		(85,521	)
		Net Assets—100.0%	$	230,311,011

Notes to Schedule of Investments:

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

^(b)  Non-income producing security.

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

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

9

Portfolio Composition

PowerShares Dynamic Leisure and Entertainment Portfolio (PEJ)

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of October 31, 2013 (Unaudited)
Restaurants	44.7
Broadcasting	15.1
Movies & Entertainment	12.9
Casinos & Gaming	9.6
Internet Retail	7.4
Hotels, Resorts & Cruise Lines	5.2
Leisure Facilities	5.1
Money Market Fund Plus Other Assets Less Liabilities	(0.0	)

Schedule of Investments^(a)

PowerShares Dynamic Leisure and Entertainment Portfolio (PEJ)

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Broadcasting—15.1%
	104,245	Discovery Communications, Inc., Class A(b)	$	9,269,465
	59,197	Liberty Media Corp., Class A(b)		9,051,813
	109,879	Scripps Networks Interactive, Inc., Class A		8,845,260
				27,166,538
		Casinos & Gaming—9.6%
	61,103	Bally Technologies, Inc.(b)		4,469,074
	233,303	International Game Technology		4,386,096
	249,127	MGM Resorts International(b)		4,743,378
	112,316	Multimedia Games Holding Co., Inc.(b)		3,651,393
				17,249,941
		Hotels, Resorts & Cruise Lines—5.2%
	126,368	Starwood Hotels & Resorts Worldwide, Inc.		9,303,212
		Internet Retail—7.4%
	463,409	Orbitz Worldwide, Inc.(b)		4,281,899
	8,609	priceline.com, Inc.(b)		9,072,423
				13,354,322
		Leisure Facilities—5.1%
	103,822	Cedar Fair LP		4,760,239
	147,244	SeaWorld Entertainment, Inc.		4,421,737
				9,181,976
		Movies & Entertainment—12.9%
	125,879	Lions Gate Entertainment Corp.(b)		4,352,896
	261,397	Live Nation Entertainment, Inc.(b)		5,081,558
	246,349	Regal Entertainment Group, Class A		4,683,095
	133,483	Time Warner, Inc.		9,175,621
				23,293,170

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Restaurants—44.7%
	107,626	AFC Enterprises, Inc.(b)	$	4,797,967
	10,558	Biglari Holdings, Inc.(b)		4,603,499
	89,887	Bob Evans Farms, Inc.		5,131,649
	42,410	Buffalo Wild Wings, Inc.(b)		6,046,818
	108,894	CEC Entertainment, Inc.		5,047,237
	19,799	Chipotle Mexican Grill, Inc.(b)		10,433,479
	44,780	Cracker Barrel Old Country Store, Inc.		4,919,979
	71,727	Domino’s Pizza, Inc.		4,810,013
	111,599	Jack in the Box, Inc.(b)		4,539,847
	223,485	Krispy Kreme Doughnuts, Inc.(b)		5,421,746
	67,953	Red Robin Gourmet Burgers, Inc.(b)		5,176,659
	276,133	Sonic Corp.(b)		5,329,367
	114,568	Starbucks Corp.		9,285,736
	582,942	Wendy’s Co. (The)		5,065,766
				80,609,762
		Total Common Stocks and Other Equity Interests (Cost $154,323,950)		180,158,921
		Money Market Fund—0.1%
	96,199	Premier Portfolio—Institutional Class(c) (Cost $96,199)		96,199
		Total Investments (Cost $154,420,149)—100.1%		180,255,120
		Other assets less liabilities—(0.1)%		(134,146	)
		Net Assets—100.0%	$	180,120,974

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

10

PowerShares Dynamic Leisure and Entertainment Portfolio (PEJ) (continued)

October 31, 2013

(Unaudited)

Notes to Schedule of Investments:

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

^(b)  Non-income producing security.

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

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

11

Portfolio Composition

PowerShares Dynamic Media Portfolio (PBS)

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of October 31, 2013 (Unaudited)
Internet Software & Services	29.5
Broadcasting	21.2
Publishing	10.5
Cable & Satellite	9.8
Advertising	7.8
Movies & Entertainment	7.5
Data Processing & Outsourced Services	3.0
Specialized Finance	2.9
Internet Retail	2.8
IT Consulting & Other Services	2.6
Catalog Retail	2.4
Money Market Funds Plus Other Assets Less Liabilities	(0.0	)

Schedule of Investments^(a)

PowerShares Dynamic Media Portfolio (PBS)

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks—100.0%
		Advertising—7.8%
	410,425	Interpublic Group of Cos., Inc. (The)	$	6,895,140
	358,844	National CineMedia, Inc.		6,286,947
	106,381	Omnicom Group, Inc.		7,245,610
				20,427,697
		Broadcasting—21.2%
	456,293	Belo Corp., Class A		6,264,903
	231,480	CBS Corp., Class B		13,689,727
	1,344,154	Cumulus Media, Inc., Class A(b)(c)		8,038,041
	152,607	Discovery Communications, Inc., Class A(b)(c)		13,569,815
	47,275	Liberty Media Corp., Class A(c)		7,228,820
	87,749	Scripps Networks Interactive, Inc., Class A(b)		7,063,794
				55,855,100
		Cable & Satellite—9.8%
	263,088	DISH Network Corp., Class A		12,680,842
	110,182	Time Warner Cable, Inc.		13,238,367
				25,919,209
		Catalog Retail—2.4%
	119,789	HSN, Inc.		6,276,944
		Data Processing & Outsourced Services—3.0%
	32,976	Alliance Data Systems Corp.(b)(c)		7,817,291
		Internet Retail—2.8%
	22,730	Netflix, Inc.(c)		7,329,970
		Internet Software & Services—29.5%
	322,280	Blucora, Inc.(b)(c)		7,615,476
	43,441	CoStar Group, Inc.(b)(c)		7,688,623

Number of Shares			Value
		Common Stocks (continued)
		Internet Software & Services (continued)
	13,971	Google, Inc., Class A(c)	$	14,398,233
	49,277	LinkedIn Corp., Class A(c)		11,021,787
	129,980	Shutterstock, Inc.(b)(c)		9,202,584
	155,396	Trulia, Inc.(b)(c)		6,211,178
	205,348	WebMD Health Corp.(b)(c)		7,232,356
	436,157	Yahoo!, Inc.(c)		14,362,650
				77,732,887
		IT Consulting & Other Services—2.6%
	431,569	Sapient Corp.(c)		6,823,106
		Movies & Entertainment—7.5%
	184,292	Lions Gate Entertainment Corp.(b)(c)		6,372,817
	195,413	Time Warner, Inc.		13,432,690
				19,805,507
		Publishing—10.5%
	267,826	Gannett Co., Inc.(b)		7,410,746
	150,008	Meredith Corp.		7,695,410
	218,635	Scholastic Corp.		6,272,638
	234,186	Valassis Communications, Inc.(b)		6,407,329
				27,786,123
		Specialized Finance—2.9%
	110,538	McGraw Hill Financial, Inc.		7,702,288
		Total Common Stocks (Cost $232,253,767)		263,476,122

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

12

PowerShares Dynamic Media Portfolio (PBS) (continued)

October 31, 2013

(Unaudited)

Number of Shares			Value
		Money Market Fund—0.1%
	147,405	Premier Portfolio—Institutional Class(d) (Cost $147,405)	$	147,405
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $232,401,172)—100.1%		263,623,527
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—15.0%
	39,493,550	Invesco Liquid Assets Portfolio—Institutional Class (Cost $39,493,550)(d)(e)		39,493,550
		Total Investments (Cost $271,894,722)—115.1%		303,117,077
		Other assets less liabilities—(15.1)%		(39,651,728	)
		Net Assets—100.0%	$	263,465,349

Notes to Schedule of Investments:

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

^(b)  All or a portion of this security was out on loan at October 31, 2013.

^(c)  Non-income producing security.

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

^(e)  The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2G.

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

13

Portfolio Composition

PowerShares Dynamic Networking Portfolio (PXQ)

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of October 31, 2013 (Unaudited)
Communications Equipment	59.2
Systems Software	11.2
Electronic Components	8.1
Application Software	6.7
Electronic Manufacturing Services	6.3
Computer Storage & Peripherals	3.0
Internet Software & Services	2.8
Semiconductors	2.7
Money Market Fund Plus Other Assets Less Liabilities	0.0

Schedule of Investments^(a)

PowerShares Dynamic Networking Portfolio (PXQ)

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks—100.0%
		Application Software—6.7%
	21,632	Citrix Systems, Inc.(b)	$	1,228,265
	33,617	NetScout Systems, Inc.(b)		952,034
				2,180,299
		Communications Equipment—59.2%
	34,620	ADTRAN, Inc.		812,878
	53,289	ARRIS Group, Inc.(b)		951,741
	50,213	Aruba Networks, Inc.(b)		941,996
	112,843	Brocade Communications Systems, Inc.(b)		905,001
	64,983	Calix, Inc.(b)		660,877
	41,920	Ciena Corp.(b)		975,478
	65,676	Cisco Systems, Inc.		1,477,710
	18,360	F5 Networks, Inc.(b)		1,496,524
	40,793	Finisar Corp.(b)		938,647
	118,109	Harmonic, Inc.(b)		863,377
	90,080	Infinera Corp.(b)		919,717
	80,999	Juniper Networks, Inc.(b)		1,509,821
	27,333	Motorola Solutions, Inc.		1,708,859
	28,855	NETGEAR, Inc.(b)		829,870
	23,097	QUALCOMM, Inc.		1,604,548
	61,444	Ruckus Wireless, Inc.(b)		890,938
	242,039	Sonus Networks, Inc.(b)		726,117
	376,143	Tellabs, Inc.		917,789
				19,131,888
		Computer Storage & Peripherals—3.0%
	78,851	QLogic Corp.(b)		973,810
		Electronic Components—8.1%
	20,205	Amphenol Corp., Class A		1,622,259
	14,722	Belden, Inc.		990,202
				2,612,461

Number of Shares			Value
		Common Stocks (continued)
		Electronic Manufacturing Services—6.3%
	52,754	Molex, Inc.	$	2,036,304
		Internet Software & Services—2.8%
	28,031	LogMeIn, Inc.(b)		905,401
		Semiconductors—2.7%
	21,992	Cavium, Inc.(b)		886,498
		Systems Software—11.2%
	24,705	Gigamon, Inc.(b)		760,420
	23,927	Infoblox, Inc.(b)		1,063,555
	28,985	Proofpoint, Inc.(b)		917,085
	41,772	Qualys, Inc.(b)		868,858
				3,609,918
		Total Common Stocks (Cost $28,286,078)		32,336,579
		Money Market Fund—0.2%
	79,288	Premier Portfolio—Institutional Class(c) (Cost $79,288)		79,288
		Total Investments (Cost $28,365,366)—100.2%		32,415,867
		Other assets less liabilities—(0.2)%		(76,130	)
		Net Assets—100.0%	$	32,339,737

Notes to Schedule of Investments:

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

^(b)  Non-income producing security.

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

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

14

Portfolio Composition

PowerShares Dynamic Oil & Gas Services Portfolio (PXJ)

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of October 31, 2013 (Unaudited)
Oil & Gas Equipment & Services	72.2
Oil & Gas Drilling	27.8
Money Market Fund Plus Other Assets Less Liabilities	(0.0	)

Schedule of Investments^(a)

PowerShares Dynamic Oil & Gas Services Portfolio (PXJ)

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Oil & Gas Drilling—27.8%
	53,093	Atwood Oceanics, Inc.(b)	$	2,820,831
	84,644	Diamond Offshore Drilling, Inc.		5,242,003
	46,895	Helmerich & Payne, Inc.		3,636,707
	191,965	Nabors Industries Ltd.		3,355,548
	145,693	Noble Corp.		5,492,626
	515,027	Parker Drilling Co.(b)		3,708,195
	150,907	Patterson-UTI Energy, Inc.		3,661,004
	120,093	Transocean Ltd.		5,652,778
				33,569,692
		Oil & Gas Equipment & Services—72.2%
	116,580	Baker Hughes, Inc.		6,772,132
	44,996	Bristow Group, Inc.		3,620,828
	143,997	C&J Energy Services, Inc.(b)		3,317,691
	19,512	Core Laboratories NV		3,653,037
	28,980	Dril-Quip, Inc.(b)		3,402,832
	107,774	Exterran Holdings, Inc.(b)		3,076,948
	105,845	Exterran Partners LP		3,285,429
	101,059	FMC Technologies, Inc.(b)		5,108,533
	64,295	Gulfmark Offshore, Inc., Class A		3,200,605
	112,912	Halliburton Co.		5,987,723
	118,108	Helix Energy Solutions Group, Inc.(b)		2,794,435
	54,264	Hornbeck Offshore Services, Inc.(b)		2,999,171
	443,217	Key Energy Services, Inc.(b)		3,465,957
	265,611	Newpark Resources, Inc.(b)		3,386,540
	38,106	Oceaneering International, Inc.		3,272,543
	33,135	Oil States International, Inc.(b)		3,599,455
	207,021	RPC, Inc.		3,796,765
	66,961	Schlumberger Ltd.		6,275,585
	35,583	SEACOR Holdings, Inc.		3,480,017
	120,368	Superior Energy Services, Inc.(b)		3,229,474
	191,343	Tesco Corp.(b)		3,287,273

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Oil & Gas Equipment & Services (continued)
	363,501	Weatherford International Ltd.(b)	$	5,975,956
				86,988,929
		Total Common Stocks and Other Equity Interests (Cost $108,729,970)		120,558,621
		Money Market Fund—0.1%
	67,577	Premier Portfolio—Institutional Class(c) (Cost $67,577)		67,577
		Total Investments (Cost $108,797,547)—100.1%		120,626,198
		Other assets less liabilities—(0.1)%		(130,577	)
		Net Assets—100.0%	$	120,495,621

Notes to Schedule of Investments:

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

^(b)  Non-income producing security.

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

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

15

Portfolio Composition

PowerShares Dynamic Pharmaceuticals Portfolio (PJP)

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of October 31, 2013 (Unaudited)
Pharmaceuticals	69.3
Biotechnology	22.3
Health Care Equipment	5.7
Personal Products	2.7
Money Market Fund Plus Other Assets Less Liabilities	0.0

Schedule of Investments^(a)

PowerShares Dynamic Pharmaceuticals Portfolio (PJP)

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks—100.0%
		Biotechnology—22.3%
	333,128	Amgen, Inc.	$	38,642,848
	97,351	Biogen Idec, Inc.(b)		23,772,141
	259,266	Celgene Corp.(b)		38,498,408
	602,144	Gilead Sciences, Inc.(b)		42,746,203
	431,225	Ligand Pharmaceuticals, Inc., Class B(b)		22,320,206
				165,979,806
		Health Care Equipment—5.7%
	622,190	Abbott Laboratories		22,741,045
	298,136	Baxter International, Inc.		19,638,218
				42,379,263
		Personal Products—2.7%
	638,672	Prestige Brands Holdings, Inc.(b)		19,945,726
		Pharmaceuticals—69.3%
	153,405	Actavis PLC(b)		23,713,345
	1,154,021	Akorn, Inc.(b)		23,588,189
	234,638	Allergan, Inc.		21,260,549
	1,188,415	Auxilium Pharmaceuticals, Inc.(b)		20,452,622
	870,503	Bristol-Myers Squibb Co.		45,718,818
	706,053	Eli Lilly & Co.		35,175,561
	504,698	Endo Health Solutions, Inc.(b)		22,070,444
	487,609	Forest Laboratories, Inc.(b)		22,932,251
	531,327	Hospira, Inc.(b)		21,529,370
	1,017,561	Impax Laboratories, Inc.(b)		20,615,786
	419,984	Johnson & Johnson		38,894,718
	656,050	Medicines Co. (The)(b)		22,253,216
	767,412	Merck & Co., Inc.		34,602,607
	586,813	Mylan, Inc.(b)		22,222,608
	170,618	Perrigo Co.		23,526,516
	1,286,464	Pfizer, Inc.		39,468,716
	311,008	Questcor Pharmaceuticals, Inc.		19,086,561
	309,796	Salix Pharmaceuticals Ltd.(b)		22,227,863
	920,868	Santarus, Inc.(b)		21,483,850

Number of Shares			Value
		Common Stocks (continued)
		Pharmaceuticals (continued)
	1,655,051	VIVUS, Inc.(b)	$	15,540,929
				516,364,519
		Total Common Stocks (Cost $589,299,164)		744,669,314
		Money Market Fund—0.0%
	273,185	Premier Portfolio—Institutional Class(c) (Cost $273,185)		273,185
		Total Investments (Cost $589,572,349)—100.0%		744,942,499
		Other assets less liabilities—(0.0)%		(173,892	)
		Net Assets—100.0%	$	744,768,607

Notes to Schedule of Investments:

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

^(b)  Non-income producing security.

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

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

16

Portfolio Composition

PowerShares Dynamic Retail Portfolio (PMR)

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of October 31, 2013 (Unaudited)
Food Retail	21.8
Drug Retail	14.2
Hypermarkets & Super Centers	12.7
Computer & Electronics Retail	12.4
Automotive Retail	9.4
Apparel Retail	7.9
Home Improvement Retail	7.7
Internet Software & Services	5.3
Trucking	3.0
Home Furnishing Retail	2.8
Forest Products	2.7
Money Market Fund Plus Other Assets Less Liabilities	0.1

Schedule of Investments^(a)

PowerShares Dynamic Retail Portfolio (PMR)

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks—99.9%
		Apparel Retail—7.9%
	37,776	Brown Shoe Co., Inc.	$	847,693
	33,661	Cato Corp. (The), Class A		1,008,820
	15,925	Children’s Place Retail Stores, Inc. (The)(b)		869,346
				2,725,859
		Automotive Retail—9.4%
	12,906	Lithia Motors, Inc., Class A		811,142
	12,654	O’Reilly Automotive, Inc.(b)		1,566,692
	21,699	Penske Automotive Group, Inc.		859,714
				3,237,548
		Computer & Electronics Retail—12.4%
	43,130	Best Buy Co., Inc.		1,845,964
	16,867	GameStop Corp., Class A		924,649
	46,765	hhgregg, Inc.(b)		725,325
	22,579	Rent-A-Center, Inc.		773,105
				4,269,043
		Drug Retail—14.2%
	26,747	CVS Caremark Corp.		1,665,268
	244,774	Rite Aid Corp.(b)		1,304,646
	32,301	Walgreen Co.		1,913,511
				4,883,425
		Food Retail—21.8%
	17,351	Fresh Market, Inc. (The)(b)		883,339
	33,890	Ingles Markets, Inc., Class A		874,701

Number of Shares			Value
		Common Stocks (continued)
		Food Retail (continued)
	42,423	Kroger Co. (The)	$	1,817,401
	32,700	Safeway, Inc.		1,141,230
	22,915	Sprouts Farmers Market, Inc.(b)		1,055,465
	118,119	SUPERVALU, Inc.(b)		830,377
	18,027	Weis Markets, Inc.		922,442
				7,524,955
		Forest Products—2.7%
	36,663	Boise Cascade Co.(b)		938,939
		Home Improvement Retail—7.7%
	33,886	Lowe’s Cos., Inc.		1,686,845
	8,519	Lumber Liquidators Holdings, Inc.(b)		972,785
				2,659,630
		Home Furnishing Retail—2.8%
	34,982	Haverty Furniture Cos., Inc.		972,849
		Hypermarkets & Super Centers—12.7%
	13,879	Costco Wholesale Corp.		1,637,722
	9,852	PriceSmart, Inc.		1,121,059
	21,276	Wal-Mart Stores, Inc.		1,632,933
				4,391,714
		Internet Software & Services—5.3%
	20,222	Stamps.com, Inc.(b)		918,888
	74,313	United Online, Inc.		905,870
				1,824,758

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

17

PowerShares Dynamic Retail Portfolio (PMR) (continued)

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks (continued)
		Trucking—3.0%
	5,177	AMERCO	$	1,045,392
		Total Common Stocks (Cost $30,273,235)		34,474,112
		Money Market Fund—0.2%
	69,591	Premier Portfolio—Institutional Class(c) (Cost $69,591)		69,591
		Total Investments (Cost $30,342,826)—100.1%		34,543,703
		Other assets less liabilities—(0.1)%		(26,432	)
		Net Assets—100.0%	$	34,517,271

Notes to Schedule of Investments:

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

^(b)  Non-income producing security.

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

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

18

Portfolio Composition

PowerShares Dynamic Semiconductors Portfolio (PSI)

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of October 31, 2013 (Unaudited)
Semiconductors	66.5
Semiconductor Equipment	30.8
Communications Equipment	2.7
Money Market Fund Plus Other Assets Less Liabilities	(0.0	)

Schedule of Investments^(a)

PowerShares Dynamic Semiconductors Portfolio (PSI)

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks—100.0%
		Communications Equipment—2.7%
	10,519	InterDigital, Inc.	$	407,611
		Semiconductor Equipment—30.8%
	20,509	Advanced Energy Industries, Inc.(b)		428,228
	93,234	Amkor Technology, Inc.(b)		495,073
	45,666	Applied Materials, Inc.		815,138
	15,228	ATMI, Inc.(b)		416,333
	42,486	Brooks Automation, Inc.		409,565
	39,773	Entegris, Inc.(b)		411,651
	12,428	KLA-Tencor Corp.		815,277
	33,803	Kulicke & Soffa Industries, Inc. (Singapore)(b)		436,059
	8,011	Lam Research Corp.(b)		434,436
				4,661,760
		Semiconductors—66.5%
	14,810	Analog Devices, Inc.		730,133
	34,747	Applied Micro Circuits Corp.(b)		405,150
	6,738	Cree, Inc.(b)		409,334
	15,015	Diodes, Inc.(b)		363,663
	30,595	Exar Corp.(b)		352,760
	42,925	Integrated Device Technology, Inc.(b)		456,722
	31,184	Intel Corp.		761,825
	15,655	International Rectifier Corp.(b)		407,656
	36,053	Intersil Corp., Class A		402,352
	17,881	Linear Technology Corp.		735,624
	18,283	Magnachip Semiconductor Corp. (South Korea)(b)		341,709
	30,874	Marvell Technology Group Ltd.		370,488
	50,512	Micron Technology, Inc.(b)		893,052
	12,210	Monolithic Power Systems, Inc.		388,767
	25,346	NVIDIA Corp.		384,752
	51,639	ON Semiconductor Corp.(b)		364,571
	7,173	Power Integrations, Inc.		412,017
	17,944	Texas Instruments, Inc.		755,084

Number of Shares			Value
		Common Stocks (continued)
		Semiconductors (continued)
	49,585	TriQuint Semiconductor, Inc.(b)	$	393,209
	15,787	Xilinx, Inc.		717,046
				10,045,914
		Total Common Stocks (Cost $13,182,854)		15,115,285
		Money Market Fund—0.4%
	56,666	Premier Portfolio—Institutional Class(c) (Cost $56,666)		56,666
		Total Investments (Cost $13,239,520)—100.4%		15,171,951
		Other assets less liabilities—(0.4)%		(61,265	)
		Net Assets—100.0%	$	15,110,686

Notes to Schedule of Investments:

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

^(b)  Non-income producing security.

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

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

19

Portfolio Composition

PowerShares Dynamic Software Portfolio (PSJ)

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of October 31, 2013 (Unaudited)
Application Software	41.1
Health Care Technology	17.8
Home Entertainment Software	12.5
Systems Software	9.7
Data Processing & Outsourced Services	9.3
Semiconductor Equipment	3.1
IT Consulting & Other Services	2.8
Internet Software & Services	2.4
Education Services	1.4
Money Market Fund Plus Other Assets Less Liabilities	(0.1	)

Schedule of Investments^(a)

PowerShares Dynamic Software Portfolio (PSJ)

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks—100.1%
		Application Software—41.1%
	59,834	Adobe Systems, Inc.(b)	$	3,243,003
	55,321	Advent Software, Inc.		1,856,020
	32,596	ANSYS, Inc.(b)		2,850,520
	44,664	Aspen Technology, Inc.(b)		1,707,505
	41,452	Blackbaud, Inc.		1,492,272
	49,359	Comverse, Inc.(b)		1,558,757
	25,350	Interactive Intelligence Group, Inc.(b)		1,557,757
	17,064	Manhattan Associates, Inc.(b)		1,817,487
	67,379	Mentor Graphics Corp.		1,487,728
	57,985	Monotype Imaging Holdings, Inc.		1,636,337
	42,190	SS&C Technologies Holdings, Inc.(b)		1,658,067
	20,207	Tyler Technologies, Inc.(b)		1,954,219
				22,819,672
		Data Processing & Outsourced Services—9.3%
	63,429	CSG Systems International, Inc.		1,767,132
	20,921	DST Systems, Inc.		1,773,473
	29,922	Jack Henry & Associates, Inc.		1,634,040
				5,174,645
		Education Services—1.4%
	41,121	K12, Inc.(b)		751,692
		Health Care Technology—17.8%
	102,690	Allscripts Healthcare Solutions, Inc.(b)		1,420,203
	59,431	Cerner Corp.(b)		3,329,919
	45,041	HealthStream, Inc.(b)		1,608,864
	16,694	Medidata Solutions, Inc.(b)		1,841,515
	72,166	Quality Systems, Inc.		1,646,828
				9,847,329

Number of Shares			Value
		Common Stocks (continued)
		Home Entertainment Software—12.5%
	167,732	Activision Blizzard, Inc.	$	2,791,060
	102,755	Electronic Arts, Inc.(b)		2,697,319
	81,325	Take-Two Interactive Software, Inc.(b)		1,456,531
				6,944,910
		Internet Software & Services—2.4%
	41,930	Cvent, Inc.(b)		1,299,411
		IT Consulting & Other Services—2.8%
	40,508	Amdocs Ltd.		1,557,533
		Semiconductor Equipment—3.1%
	75,220	PDF Solutions, Inc.(b)		1,727,803
		Systems Software—9.7%
	93,586	CA, Inc.		2,972,291
	106,887	Symantec Corp.		2,430,611
				5,402,902
		Total Common Stocks (Cost $46,607,463)		55,525,897
		Money Market Fund—0.1%
	67,670	Premier Portfolio—Institutional Class(c) (Cost $67,670)		67,670
		Total Investments (Cost $46,675,133)—100.2%		55,593,567
		Other assets less liabilities—(0.2)%		(95,743	)
		Net Assets—100.0%	$	55,497,824

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

20

PowerShares Dynamic Software Portfolio (PSJ) (continued)

October 31, 2013

(Unaudited)

Notes to Schedule of Investments:

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

^(b)  Non-income producing security.

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

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

21

Statements of Assets and Liabilities

October 31, 2013

(Unaudited)

	PowerShares Dynamic Biotechnology & Genome Portfolio (PBE)			PowerShares Dynamic Building & Construction Portfolio (PKB)			PowerShares Dynamic Energy Exploration & Production Portfolio (PXE)			PowerShares Dynamic Food & Beverage Portfolio (PBJ)			PowerShares Dynamic Leisure and Entertainment Portfolio (PEJ)
Assets:
Unaffiliated investments, at value(a)	$	261,500,274		$	93,628,612		$	104,629,254		$	230,238,654		$	180,158,921
Affiliated investments, at value		125,541			79,842			45,921			157,878			96,199
Total investments, at value		261,625,815			93,708,454			104,675,175			230,396,532			180,255,120
Receivables:
Investments sold		77,551			—			—			—			—
Dividends		3			38,627			87,080			124,983			29,888
Shares sold		—			—			1,660,713			9,108,345			13,172,589
Security lending		—			—			—			—			—
Other assets		1,195			812			813			1,195			813
Total Assets		261,704,564			93,747,893			106,423,781			239,631,055			193,458,410
Liabilities:
Payables:
Expenses recaptured		—			72			—			6,489			4,456
Shares repurchased		—			—			—			9,096,631			13,180,239
Collateral upon return of securities loaned		—			—			—			—			—
Investments purchased		—			—			1,660,632			—			—
Accrued advisory fees		98,494			39,532			40,000			94,117			66,013
Accrued trustees fees		19,032			12,515			14,507			16,673			12,257
Accrued expenses		94,302			69,756			83,695			106,134			74,471
Total Liabilities		211,828			121,875			1,798,834			9,320,044			13,337,436
Net Assets	$	261,492,736		$	93,626,018		$	104,624,947		$	230,311,011		$	180,120,974
Net Assets Consist of:
Shares of beneficial interest	$	347,501,914		$	94,948,604		$	131,189,717		$	233,150,265		$	162,568,702
Undistributed net investment income (loss)		(383,189	)		(81,236	)		25,562			297,487			(68,063	)
Undistributed net realized gain (loss)		(133,264,396	)		(10,944,851	)		(32,141,471	)		(17,132,459	)		(8,214,636	)
Net unrealized appreciation		47,638,407			9,703,501			5,551,139			13,995,718			25,834,971
Net Assets	$	261,492,736		$	93,626,018		$	104,624,947		$	230,311,011		$	180,120,974
Shares outstanding (unlimited amount authorized, $0.01 par value)		7,450,000			4,500,000			3,150,000			8,850,000			5,450,000
Net asset value	$	35.10		$	20.81		$	33.21		$	26.02		$	33.05
Market price	$	35.15		$	20.84		$	33.28		$	26.03		$	33.10
Unaffiliated investments, at cost	$	213,861,867		$	83,925,111		$	99,078,115		$	216,242,936		$	154,323,950
Affiliated investments, at cost	$	125,541		$	79,842		$	45,921		$	157,878		$	96,199
Total investments, at cost	$	213,987,408		$	84,004,953		$	99,124,036		$	216,400,814		$	154,420,149
(a) Includes securities on loan with an aggregate value of	$	—		$	—		$	—		$	—		$	—

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

22

PowerShares Dynamic Media Portfolio  (PBS)			PowerShares Dynamic Networking Portfolio (PXQ)			PowerShares Dynamic Oil & Gas Services Portfolio (PXJ)			PowerShares Dynamic Pharmaceuticals Portfolio (PJP)			PowerShares Dynamic Retail Portfolio (PMR)			PowerShares Dynamic Semiconductors Portfolio (PSI)			PowerShares Dynamic Software Portfolio (PSJ)
$	263,476,122		$	32,336,579		$	120,558,621		$	744,669,314		$	34,474,112		$	15,115,285		$	55,525,897
	39,640,955			79,288			67,577			273,185			69,591			56,666			67,670
	303,117,077			32,415,867			120,626,198			744,942,499			34,543,703			15,171,951			55,593,567
	—			—			—			—			757,361			2,666,670			—
	69,339			2,976			22,855			375,417			17,528			6,335			2
	2,437,341			—			—			2,446,898			—			—			—
	4,173			—			—			—			—			—			—
	813			813			1,195			813			812			812			813
	305,628,743			32,419,656			120,650,248			747,765,627			35,319,404			17,845,768			55,594,382
	12,641			—			—			5,058			—			—			—
	2,437,785			—			—			2,446,277			—			2,666,591			—
	39,493,550			—			—			—			—			—			—
	—			—			—			—			717,697			—			—
	108,028			7,410			50,411			301,068			9,647			1,394			20,294
	14,208			12,041			20,325			21,234			11,211			11,752			12,312
	97,182			60,468			83,891			223,383			63,578			55,345			63,952
	42,163,394			79,919			154,627			2,997,020			802,133			2,735,082			96,558
$	263,465,349		$	32,339,737		$	120,495,621		$	744,768,607		$	34,517,271		$	15,110,686		$	55,497,824
$	249,616,429		$	60,586,845		$	304,406,844		$	592,940,717		$	44,075,273		$	65,397,610		$	67,196,856
	(48,571	)		(16,281	)		(73,248	)		176,090			6,933			(13,700	)		(8,494	)
	(17,324,864	)		(32,281,328	)		(195,666,626	)		(3,718,350	)		(13,765,812	)		(52,205,655	)		(20,608,972	)
	31,222,355			4,050,501			11,828,651			155,370,150			4,200,877			1,932,431			8,918,434
$	263,465,349		$	32,339,737		$	120,495,621		$	744,768,607		$	34,517,271		$	15,110,686		$	55,497,824
	10,950,000			1,100,000			4,600,000			15,550,000			1,000,000			850,000			1,650,000
$	24.06		$	29.40		$	26.19		$	47.90		$	34.52		$	17.78		$	33.64
$	24.09		$	29.41		$	26.21		$	47.97		$	34.57		$	17.73		$	33.66
$	232,253,767		$	28,286,078		$	108,729,970		$	589,299,164		$	30,273,235		$	13,182,854		$	46,607,463
$	39,640,955		$	79,288		$	67,577		$	273,185		$	69,591		$	56,666		$	67,670
$	271,894,722		$	28,365,366		$	108,797,547		$	589,572,349		$	30,342,826		$	13,239,520		$	46,675,133
$	38,413,275		$	—		$	—		$	—		$	—		$	—		$	—

23

Statements of Operations

For the six months ended October 31, 2013

(Unaudited)

	PowerShares Dynamic Biotechnology & Genome Portfolio (PBE)			PowerShares Dynamic Building & Construction Portfolio (PKB)			PowerShares Dynamic Energy Exploration & Production Portfolio (PXE)			PowerShares Dynamic Food & Beverage Portfolio (PBJ)			PowerShares Dynamic Leisure and Entertainment Portfolio (PEJ)
Investment Income:
Unaffiliated dividend income	$	342,731		$	315,054		$	1,297,788		$	2,261,671		$	585,600
Affiliated dividend income		5			4			8			7			5
Securities lending income		—			—			—			—			—
Foreign withholding tax		—			—			—			—			—
Total Income		342,736			315,058			1,297,796			2,261,678			585,605
Expenses:
Advisory fees		479,526			257,418			253,668			668,158			309,985
Sub-licensing		28,772			15,445			15,220			40,090			18,599
Accounting & administration fees		18,114			18,046			18,046			22,534			18,046
Recapture		17,548			2,440			—			66,671			11,552
Professional fees		15,460			14,103			14,769			15,508			14,357
Trustees fees		6,215			5,443			5,462			8,066			5,392
Custodian & transfer agent fees		2,432			2,611			3,731			3,429			2,402
Other expenses		14,048			8,263			18,207			16,813			9,837
Total Expenses		582,115			323,769			329,103			841,269			390,170
Waivers		(33	)		(24	)		(1,668	)		(41	)		(26	)
Net Expenses		582,082			323,745			327,435			841,228			390,144
Net Investment Income (Loss)		(239,346	)		(8,687	)		970,361			1,420,450			195,461
Realized and Unrealized Gain (Loss):
Net realized gain (loss) from:
Investment securities		2,139,668			(1,252,015	)		(1,818,144	)		7,323,967			4,258,010
In-kind redemptions		29,868,381			8,955,466			16,050,731			21,895,302			7,905,417
Net increase from payment by affiliate (see Note 3)		—			—			—			—			—
Net realized gain		32,008,049			7,703,451			14,232,587			29,219,269			12,163,427
Net change in unrealized appreciation (depreciation) on investment securities		8,201,360			(2,942,499	)		(5,617,661	)		(5,324,213	)		12,090,617
Net realized and unrealized gain		40,209,409			4,760,952			8,614,926			23,895,056			24,254,044
Net increase in net assets resulting from operations	$	39,970,063		$	4,752,265		$	9,585,287		$	25,315,506		$	24,449,505

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

24

PowerShares Dynamic Media Portfolio (PBS)			PowerShares Dynamic Networking Portfolio (PXQ)			PowerShares Dynamic Oil & Gas Services Portfolio (PXJ)			PowerShares Dynamic Pharmaceuticals Portfolio (PJP)			PowerShares Dynamic Retail Portfolio (PMR)			PowerShares Dynamic Semiconductors Portfolio (PSI)			PowerShares Dynamic Software Portfolio (PSJ)
$	983,145		$	92,271		$	497,539		$	3,549,502		$	204,248		$	102,092		$	163,040
	8			4			5			17			3			3			11
	20,077			—			—			—			—			—			—
	—			—			(2,844	)		—			—			—			—
	1,003,230			92,275			494,700			3,549,519			204,251			102,095			163,051
	520,370			80,105			291,643			1,546,940			79,541			42,222			130,010
	31,222			4,806			17,499			92,817			4,772			2,533			7,801
	18,201			18,046			18,046			49,118			18,046			18,046			18,046
	48,455			—			118			18,411			—			—			—
	15,507			14,328			15,444			18,602			14,418			13,762			14,221
	6,381			4,352			5,505			11,617			4,291			4,174			4,644
	3,581			2,238			2,445			4,187			2,594			2,099			2,022
	11,822			8,221			13,561			30,232			6,433			5,405			7,075
	655,539			132,096			364,261			1,771,924			130,095			88,241			183,819
	(43	)		(31,796	)		(30	)		(96	)		(30,497	)		(35,669	)		(20,662	)
	655,496			100,300			364,231			1,771,828			99,598			52,572			163,157
	347,734			(8,025	)		130,469			1,777,691			104,653			49,523			(106	)
	(2,090,767	)		(1,474,988	)		(3,412,748	)		2,558,266			(13,432	)		(299,527	)		395,165
	29,406,584			2,770,402			5,862,379			22,860,222			4,098,457			2,297,324			4,148,591
	—			—			2,071,089			—			—			—			—
	27,315,817			1,295,414			4,520,720			25,418,488			4,085,025			1,997,797			4,543,756
	9,354,465			4,185,419			13,267,606			69,006,767			703,411			749,999			1,290,638
	36,670,282			5,480,833			17,788,326			94,425,255			4,788,436			2,747,796			5,834,394
$	37,018,016		$	5,472,808		$	17,918,795		$	96,202,946		$	4,893,089		$	2,797,319		$	5,834,288

25

Statements of Changes in Net Assets

For the six months ended October 31, 2013 and the year ended April 30, 2013

(Unaudited)

	PowerShares Dynamic Biotechnology & Genome Portfolio (PBE)						PowerShares Dynamic Building & Construction Portfolio (PKB)
	October 31, 2013			April 30, 2013			October 31, 2013			April 30, 2013
Operations:
Net investment income (loss)	$	(239,346	)	$	(265,369	)	$	(8,687	)	$	241,987
Net realized gain (loss)		32,008,049			12,127,152			7,703,451			8,903,971
Net change in unrealized appreciation (depreciation)		8,201,360			21,227,732			(2,942,499	)		8,901,943
Net increase (decrease) in net assets resulting from operations		39,970,063			33,089,515			4,752,265			18,047,901
Distributions to Shareholders from:
Net investment income		—			—			—			(322,061	)
Shareholder Transactions:
Proceeds from shares sold		138,982,557			79,409,291			39,996,985			117,839,052
Value of shares repurchased		(72,913,267	)		(93,948,251	)		(55,244,057	)		(62,044,425	)
Net increase (decrease) in net assets resulting from shares transactions		66,069,290			(14,538,960	)		(15,247,072	)		55,794,627
Increase (Decrease) in Net Assets		106,039,353			18,550,555			(10,494,807	)		73,520,467
Net Assets:
Beginning of period		155,453,383			136,902,828			104,120,825			30,600,358
End of period	$	261,492,736		$	155,453,383		$	93,626,018		$	104,120,825
Undistributed net investment income (loss) at end of period	$	(383,189	)	$	(143,843	)	$	(81,236	)	$	(72,549	)
Changes in Shares Outstanding:
Shares sold		4,200,000			3,450,000			2,000,000			6,850,000
Shares repurchased		(2,250,000	)		(4,100,000	)		(2,800,000	)		(3,700,000	)
Shares outstanding, beginning of period		5,500,000			6,150,000			5,300,000			2,150,000
Shares outstanding, end of period		7,450,000			5,500,000			4,500,000			5,300,000

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

26

PowerShares Dynamic Energy Exploration & Production Portfolio (PXE)						PowerShares Dynamic Food & Beverage Portfolio (PBJ)						PowerShares Dynamic Leisure and Entertainment Portfolio (PEJ)						PowerShares Dynamic Media Portfolio (PBS)
October 31, 2013			April 30, 2013			October 31, 2013			April 30, 2013			October 31, 2013			April 30, 2013			October 31, 2013			April 30, 2013
$	970,361		$	1,477,559		$	1,420,450		$	1,693,886		$	195,461		$	321,637		$	347,734		$	881,044
	14,232,587			2,451,491			29,219,269			9,879,651			12,163,427			7,601,493			27,315,817			22,114,907
	(5,617,661	)		11,077,590			(5,324,213	)		12,783,411			12,090,617			5,981,019			9,354,465			11,226,828
	9,585,287			15,006,640			25,315,506			24,356,948			24,449,505			13,904,149			37,018,016			34,222,779
	(1,209,069	)		(1,748,096	)		(1,334,293	)		(1,927,726	)		(255,723	)		(444,843	)		(455,656	)		(917,905	)
	110,700,047			85,567,201			134,803,081			213,982,354			124,133,048			98,219,830			223,763,766			167,843,900
	(118,878,295	)		(61,990,794	)		(164,699,605	)		(169,224,165	)		(53,971,198	)		(83,592,336	)		(147,649,177	)		(188,335,046	)
	(8,178,248	)		23,576,407			(29,896,524	)		44,758,189			70,161,850			14,627,494			76,114,589			(20,491,146	)
	197,970			36,834,951			(5,915,311	)		67,187,411			94,355,632			28,086,800			112,676,949			12,813,728
	104,426,977			67,592,026			236,226,322			169,038,911			85,765,342			57,678,542			150,788,400			137,974,672
$	104,624,947		$	104,426,977		$	230,311,011		$	236,226,322		$	180,120,974		$	85,765,342		$	263,465,349		$	150,788,400
$	25,562		$	264,270		$	297,487		$	211,330		$	(68,063	)	$	(7,801	)	$	(48,571	)	$	59,351
	3,550,000			3,000,000			5,400,000			9,800,000			4,150,000			4,300,000			10,300,000			9,950,000
	(3,850,000	)		(2,300,000	)		(6,550,000	)		(8,350,000	)		(1,850,000	)		(3,750,000	)		(6,850,000	)		(11,750,000	)
	3,450,000			2,750,000			10,000,000			8,550,000			3,150,000			2,600,000			7,500,000			9,300,000
	3,150,000			3,450,000			8,850,000			10,000,000			5,450,000			3,150,000			10,950,000			7,500,000

27

Statements of Changes in Net Assets (continued)

For the six months ended October 31, 2013 and the year ended April 30, 2013

(Unaudited)

	PowerShares Dynamic Networking Portfolio (PXQ)						PowerShares Dynamic Oil & Gas Services Portfolio (PXJ)
	October 31, 2013			April 30, 2013			October 31, 2013			April 30, 2013
Operations:
Net investment income (loss)	$	(8,025	)	$	385,175		$	130,469		$	228,116
Net realized gain (loss)		1,295,414			(7,027,151	)		2,449,631			(6,085,786	)
Net increase from payment by affiliate (see Note 3)		—			—			2,071,089			—
Net change in unrealized appreciation (depreciation)		4,185,419			(2,041,654	)		13,267,606			14,972,383
Net increase (decrease) in net assets resulting from operations		5,472,808			(8,683,630	)		17,918,795			9,114,713
Distributions to Shareholders from:
Net investment income		(230,610	)		(93,171	)		(274,873	)		(143,856	)
Shareholder Transactions:
Proceeds from shares sold		8,252,130			11,278,766			58,612,916			149,307,907
Value of shares repurchased		(11,154,207	)		(54,241,007	)		(72,733,925	)		(188,790,791	)
Net increase (decrease) in net assets resulting from shares transactions		(2,902,077	)		(42,962,241	)		(14,121,009	)		(39,482,884	)
Increase (Decrease) in Net Assets		2,340,121			(51,739,042	)		3,522,913			(30,512,027	)
Net Assets:
Beginning of period		29,999,616			81,738,658			116,972,708			147,484,735
End of period	$	32,339,737		$	29,999,616		$	120,495,621		$	116,972,708
Undistributed net investment income (loss) at end of period	$	(16,281	)	$	222,354		$	(73,248	)	$	71,156
Changes in Shares Outstanding:
Shares sold		300,000			450,000			2,450,000			7,200,000
Shares repurchased		(400,000	)		(2,200,000	)		(3,050,000	)		(9,200,000	)
Shares outstanding, beginning of period		1,200,000			2,950,000			5,200,000			7,200,000
Shares outstanding, end of period		1,100,000			1,200,000			4,600,000			5,200,000

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

28

PowerShares Dynamic Pharmaceuticals Portfolio (PJP)						PowerShares Dynamic Retail Portfolio (PMR)						PowerShares Dynamic Semiconductors Portfolio (PSI)						PowerShares Dynamic Software Portfolio (PSJ)
October 31, 2013			April 30, 2013			October 31, 2013			April 30, 2013			October 31, 2013			April 30, 2013			October 31, 2013			April 30, 2013
$	1,777,691		$	5,001,201		$	104,653		$	1,272,606		$	49,523		$	135,816		$	(106	)	$	(12,345	)
	25,418,488			24,761,162			4,085,025			3,492,860			1,997,797			(742,479	)		4,543,756			2,492,754
	—			—			—			—			—			—			—			—
	69,006,767			57,938,799			703,411			(2,243,383	)		749,999			(64,085	)		1,290,638			2,706,450
	96,202,946			87,701,162			4,893,089			2,522,083			2,797,319			(670,748	)		5,834,288			5,186,859
	(2,136,670	)		(4,861,110	)		(135,621	)		(1,304,529	)		(107,690	)		(140,761	)		—			—
	230,784,770			215,166,666			28,380,820			63,080,768			8,097,539			10,919,661			21,756,437			36,626,496
	(48,387,772	)		(100,086,731	)		(23,371,337	)		(116,191,131	)		(12,420,852	)		(14,625,193	)		(20,350,108	)		(43,265,846	)
	182,396,998			115,079,935			5,009,483			(53,110,363	)		(4,323,313	)		(3,705,532	)		1,406,329			(6,639,350	)
	276,463,274			197,919,987			9,766,951			(51,892,809	)		(1,633,684	)		(4,517,041	)		7,240,617			(1,452,491	)
	468,305,333			270,385,346			24,750,320			76,643,129			16,744,370			21,261,411			48,257,207			49,709,698
$	744,768,607		$	468,305,333		$	34,517,271		$	24,750,320		$	15,110,686		$	16,744,370		$	55,497,824		$	48,257,207
$	176,090		$	535,069		$	6,933		$	37,901		$	(13,700	)	$	44,467		$	(8,494	)	$	(8,388	)
	5,150,000			6,050,000			900,000			2,500,000			500,000			750,000			700,000			1,350,000
	(1,100,000	)		(3,000,000	)		(750,000	)		(4,600,000	)		(750,000	)		(1,000,000	)		(650,000	)		(1,600,000	)
	11,500,000			8,450,000			850,000			2,950,000			1,100,000			1,350,000			1,600,000			1,850,000
	15,550,000			11,500,000			1,000,000			850,000			850,000			1,100,000			1,650,000			1,600,000

29

Financial Highlights

PowerShares Dynamic Biotechnology & Genome Portfolio (PBE)

	Six-Months Ended October 31,  2013 (Unaudited)			Year Ended April 30,
				2013			2012			2011			2010			2009
Per Share Operating Performance:
Net asset value at beginning of period	$	28.26		$	22.26		$	23.14		$	19.67		$	12.90		$	17.77
Net investment income (loss)(a)		(0.04	)		(0.05	)		(0.04	)		(0.05	)		0.06	(b)		(0.06	)
Net realized and unrealized gain (loss) on investments		6.88			6.05			(0.84	)		3.52			6.79			(4.81	)
Total from investment operations		6.84			6.00			(0.88	)		3.47			6.85			(4.87	)
Distributions to shareholders from:
Net investment income		—			—			—			—			(0.06	)		—
Return of capital		—			—			—			—			(0.02	)		—
Total distributions		—			—			—			—			(0.08	)		—
Net asset value at end of period	$	35.10		$	28.26		$	22.26		$	23.14		$	19.67		$	12.90
Market price at end of period(c)	$	35.15		$	28.27		$	22.21		$	23.18		$	19.68		$	12.87
Net Asset Value Total Return:(d)		24.20	%		26.96	%		(3.80	)%		17.64	%		53.19	%		(27.41	)%
Market Price Total Return(d)		24.34	%		27.29	%		(4.18	)%		17.78	%		53.63	%		(27.62	)%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	261,493		$	155,453		$	136,903		$	217,553		$	214,391		$	139,297
Ratio to average net assets of:
Expenses, after Waivers		0.61	%(e)		0.63	%		0.63	%		0.63	%		0.63	%		0.63	%
Expenses, prior to Waivers		0.61	%(e)		0.63	%		0.64	%		0.65	%		0.61	%		0.62	%
Net investment income (loss), after Waivers		(0.25	)%(e)		(0.20	)%		(0.21	)%		(0.23	)%		0.36	%(b)		(0.38	)%
Portfolio turnover rate(f)		39	%		53	%		53	%		81	%		80	%		93	%

PowerShares Dynamic Building & Construction Portfolio (PKB)

	Six-Months Ended October 31,  2013 (Unaudited)			Year Ended April 30,
				2013			2012			2011			2010			2009
Per Share Operating Performance:
Net asset value at beginning of period	$	19.65		$	14.23		$	14.11		$	13.92		$	10.92		$	17.25
Net investment income(a)		(0.00	)(g)		0.07			0.02			0.68	(h)		0.01			0.02
Net realized and unrealized gain (loss) on investments		1.16			5.44			0.12			0.29	(i)		3.01			(6.33	)
Total from investment operations		1.16			5.51			0.14			0.97			3.02			(6.31	)
Distributions to shareholders from:
Net investment income		—			(0.09	)		(0.02	)		(0.66	)		(0.02	)		(0.02	)
Return of capital		—			—			—			(0.12	)		—			—
Total distributions		—			(0.09	)		(0.02	)		(0.78	)		(0.02	)		(0.02	)
Net asset value at end of period	$	20.81		$	19.65		$	14.23		$	14.11		$	13.92		$	10.92
Market price at end of period(c)	$	20.84		$	19.63		$	14.20		$	14.09		$	13.92		$	10.94
Net Asset Value Total Return:(d)		5.90	%		38.85	%		0.99	%		7.49	%		27.65	%		(36.61	)%
Market Price Total Return(d)		6.16	%		39.01	%		0.92	%		7.34	%		27.42	%		(36.46	)%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	93,626		$	104,121		$	30,600		$	40,204		$	50,114		$	49,142
Ratio to average net assets of:
Expenses, after Waivers		0.63	%(e)		0.63	%		0.63	%		0.63	%		0.63	%		0.63	%
Expenses, prior to Waivers		0.63	%(e)		0.69	%		1.01	%		0.91	%		0.76	%		1.06	%
Net investment income (loss), after Waivers		(0.02	)%(e)		0.44	%		0.12	%		5.25	%(h)		0.07	%		0.19	%
Portfolio turnover rate(f)		74	%		95	%		72	%		75	%		59	%		50	%

^(a)  Based on average shares outstanding.

^(b)  Net investment income per share and the ratio of net investment income to average net assets include a special cash dividend received of $1.41 per share owned of PDL BioPharma, Inc. on December 15, 2009. Net investment loss per share and the ratio of net investment loss to average net assets excluding the special dividend are $(0.03) and (0.18)%, respectively.

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

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

^(e)  Annualized.

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

^(g)  Amount represents less than $0.005.

^(h)  Net investment income per share and the ratio of net investment income to average net assets include a special cash dividend received of $1.65 per share owned of Weyerhaeuser Co. on July 20, 2010. Net investment income per share and the ratio of net investment income to average net assets excluding the special dividend are $0.03 and 0.26%, respectively.

⁽ⁱ⁾  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.

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

30

Financial Highlights (continued)

PowerShares Dynamic Energy Exploration & Production Portfolio (PXE)

	Six-Months Ended October 31,  2013 (Unaudited)			Year Ended April 30,
				2013			2012			2011			2010			2009
Per Share Operating Performance:
Net asset value at beginning of period	$	30.27		$	24.58		$	27.67		$	18.46		$	13.17		$	26.69
Net investment income(a)		0.30			0.53			0.19			0.12			0.10			0.06
Net realized and unrealized gain (loss) on investments		3.03			5.81			(2.94	)		9.21			5.27			(13.50	)
Total from investment operations		3.33			6.34			(2.75	)		9.33			5.37			(13.44	)
Distributions to shareholders from:
Net investment income		(0.39	)		(0.65	)		(0.34	)		(0.12	)		(0.07	)		(0.08	)
Return of capital		—			—			—			—			(0.01	)		—
Total distributions		(0.39	)		(0.65	)		(0.34	)		(0.12	)		(0.08	)		(0.08	)
Net asset value at end of period	$	33.21		$	30.27		$	24.58		$	27.67		$	18.46		$	13.17
Market price at end of period(b)	$	33.28		$	30.23		$	24.57		$	27.65		$	18.46		$	13.15
Net Asset Value Total Return:(c)		11.15	%		26.14	%		(9.86	)%		50.80	%		40.87	%		(50.42	)%
Market Price Total Return(c)		11.53	%		26.03	%		(9.83	)%		50.69	%		41.08	%		(50.44	)%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	104,625		$	104,427		$	67,592		$	118,975		$	59,983		$	51,344
Ratio to average net assets of:
Expenses, after Waivers		0.65	%(d)		0.65	%		0.65	%		0.63	%		0.63	%		0.63	%
Expenses, prior to Waivers		0.65	%(d)		0.69	%		0.73	%		0.76	%		0.76	%		0.69	%
Net investment income, after Waivers		1.91	%(d)		1.97	%		0.81	%		0.57	%		0.62	%		0.30	%
Portfolio turnover rate(e)		51	%		80	%		94	%		57	%		68	%		68	%

PowerShares Dynamic Food & Beverage Portfolio (PBJ)

	Six-Months Ended October 31, 2013 (Unaudited)			Year Ended April 30,
				2013			2012			2011			2010			2009
Per Share Operating Performance:
Net asset value at beginning of period	$	23.62		$	19.77		$	19.76		$	16.00		$	12.73		$	16.73
Net investment income(a)		0.14			0.26			0.22			0.24			0.20			0.25
Net realized and unrealized gain (loss) on investments		2.39			3.92			(0.03	)		3.73			3.33			(4.08	)
Total from investment operations		2.53			4.18			0.19			3.97			3.53			(3.83	)
Distributions to shareholders from:
Net investment income		(0.13	)		(0.33	)		(0.18	)		(0.21	)		(0.26	)		(0.17	)
Net asset value at end of period	$	26.02		$	23.62		$	19.77		$	19.76		$	16.00		$	12.73
Market price at end of period(b)	$	26.03		$	23.61		$	19.77		$	19.81		$	16.01		$	12.74
Net Asset Value Total Return:(c)		10.74	%		21.45	%		1.02	%		24.99	%		28.08	%		(22.99	)%
Market Price Total Return(c)		10.83	%		21.40	%		0.77	%		25.23	%		28.06	%		(22.89	)%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	230,311		$	236,226		$	169,039		$	91,881		$	72,795		$	86,592
Ratio to average net assets of:
Expenses, after Waivers		0.63	%(d)		0.63	%		0.63	%		0.63	%		0.63	%		0.63	%
Expenses, prior to Waivers		0.63	%(d)		0.63	%		0.64	%		0.71	%		0.74	%		0.71	%
Net investment income, after Waivers		1.06	%(d)		1.28	%		1.13	%		1.39	%		1.41	%		1.80	%
Portfolio turnover rate(e)		59	%		92	%		134	%		73	%		65	%		65	%

^(a)  Based on average shares outstanding.

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

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

^(d)  Annualized.

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

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

31

Financial Highlights (continued)

PowerShares Dynamic Leisure and Entertainment Portfolio (PEJ)

	Six-Months Ended October 31, 2013 (Unaudited)			Year Ended April 30,
				2013			2012			2011			2010			2009
Per Share Operating Performance:
Net asset value at beginning of period	$	27.23		$	22.18		$	19.34		$	16.52		$	10.65		$	15.11
Net investment income(a)		0.05			0.12			0.15			0.16			0.05			0.10
Net realized and unrealized gain (loss) on investments		5.83			5.09			2.82			2.81			5.88			(4.46	)
Total from investment operations		5.88			5.21			2.97			2.97			5.93			(4.36	)
Distributions to shareholders from:
Net investment income		(0.06	)		(0.16	)		(0.13	)		(0.15	)		(0.06	)		(0.10	)
Net asset value at end of period	$	33.05		$	27.23		$	22.18		$	19.34		$	16.52		$	10.65
Market price at end of period(b)	$	33.10		$	27.21		$	22.20		$	19.34		$	16.54		$	10.63
Net Asset Value Total Return:(c)		21.62	%		23.67	%		15.49	%		18.03	%		55.81	%		(28.91	)%
Market Price Total Return(c)		21.90	%		23.47	%		15.59	%		17.89	%		56.29	%		(29.09	)%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	180,121		$	85,765		$	57,679		$	60,933		$	62,794		$	12,776
Ratio to average net assets of:
Expenses, after Waivers		0.63	%(d)		0.63	%		0.63	%		0.63	%		0.63	%		0.63	%
Expenses, prior to Waivers		0.63	%(d)		0.69	%		0.80	%		0.78	%		1.06	%		1.65	%
Net investment income, after Waivers		0.32	%(d)		0.52	%		0.80	%		0.92	%		0.41	%		0.96	%
Portfolio turnover rate(e)		75	%		93	%		90	%		58	%		68	%		50	%

PowerShares Dynamic Media Portfolio (PBS)

	Six-Months Ended October 31, 2013 (Unaudited)			Year Ended April 30,
				2013			2012			2011			2010			2009
Per Share Operating Performance:
Net asset value at beginning of period	$	20.11		$	14.84		$	15.61		$	13.68		$	8.25		$	13.44
Net investment income(a)		0.04			0.12			0.08			0.07			0.06			0.05
Net realized and unrealized gain (loss) on investments		3.96			5.28			(0.76	)		1.93			5.42			(5.18	)
Total from investment operations		4.00			5.40			(0.68	)		2.00			5.48			(5.13	)
Distributions to shareholders from:
Net investment income		(0.05	)		(0.13	)		(0.09	)		(0.07	)		(0.05	)		(0.04	)
Return of capital		—			—			—			—			(0.00	)(f)		(0.02	)
Total distributions		(0.05	)		(0.13	)		(0.09	)		(0.07	)		(0.05	)		(0.06	)
Net asset value at end of period	$	24.06		$	20.11		$	14.84		$	15.61		$	13.68		$	8.25
Market price at end of period(b)	$	24.09		$	20.10		$	14.84		$	15.61		$	13.70		$	8.26
Net Asset Value Total Return:(c)		19.95	%		36.62	%		(4.33	)%		14.68	%		66.55	%		(38.30	)%
Market Price Total Return(c)		20.15	%		36.55	%		(4.33	)%		14.51	%		66.59	%		(38.31	)%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	263,465		$	150,788		$	137,975		$	156,881		$	125,875		$	8,254
Ratio to average net assets of:
Expenses, after Waivers		0.63	%(d)		0.63	%		0.63	%		0.63	%		0.63	%		0.63	%
Expenses, prior to Waivers		0.63	%(d)		0.63	%		0.65	%		0.69	%		0.77	%		1.22	%
Net investment income, after Waivers		0.33	%(d)		0.71	%		0.60	%		0.57	%		0.51	%		0.52	%
Portfolio turnover rate(e)		53	%		70	%		89	%		53	%		50	%		69	%

^(a)  Based on average shares outstanding.

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

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

^(d)  Annualized.

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

^(f)  Amount represents less than $0.005.

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

32

Financial Highlights (continued)

PowerShares Dynamic Networking Portfolio (PXQ)

	Six-Months Ended October 31, 2013 (Unaudited)			Year Ended April 30,
				2013			2012			2011			2010			2009
Per Share Operating Performance:
Net asset value at beginning of period	$	25.00		$	27.71		$	29.20		$	21.08		$	13.56		$	16.04
Net investment income (loss)(a)		(0.01	)		0.20	(b)		(0.06	)		(0.10	)		(0.09	)		(0.06	)
Net realized and unrealized gain (loss) on investments		4.61			(2.85	)		(1.43	)		8.33			7.61			(2.42	)
Total from investment operations		4.60			(2.65	)		(1.49	)		8.23			7.52			(2.48	)
Distributions to shareholders from:
Net investment income		(0.20	)		(0.06	)		—			—			—			—
Return of capital		—			—			—			(0.11	)		—			—
Total distributions		(0.20	)		(0.06	)		—			(0.11	)		—			—
Net asset value at end of period	$	29.40		$	25.00		$	27.71		$	29.20		$	21.08		$	13.56
Market price at end of period(c)	$	29.41		$	24.97		$	27.68		$	29.20		$	21.11		$	13.58
Net Asset Value Total Return:(d)		18.44	%		(9.57	)%		(5.10	)%		39.08	%		55.46	%		(15.46	)%
Market Price Total Return(d)		18.62	%		(9.58	)%		(5.20	)%		38.89	%		55.45	%		(15.28	)%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	32,340		$	30,000		$	81,739		$	172,291		$	47,437		$	16,276
Ratio to average net assets of:
Expenses, after Waivers		0.63	%(e)		0.64	%		0.63	%		0.63	%		0.63	%		0.63	%
Expenses, prior to Waivers		0.82	%(e)		0.75	%		0.67	%		0.70	%		0.95	%		1.92	%
Net investment income (loss), after Waivers		(0.05	)%(e)		0.81	%(b)		(0.22	)%		(0.38	)%		(0.50	)%		(0.49	)%
Portfolio turnover rate(f)		40	%		68	%		84	%		61	%		29	%		23	%

PowerShares Dynamic Oil & Gas Services Portfolio (PXJ)

	Six-Months Ended October 31,  2013 (Unaudited)			Year Ended April 30,
				2013			2012			2011			2010			2009
Per Share Operating Performance:
Net asset value at beginning of period	$	22.49		$	20.48		$	26.38		$	18.03		$	13.09		$	29.23
Net investment income (loss)(a)		0.03			0.04			(0.01	)		0.07			0.04			0.06
Net realized and unrealized gain (loss) on investments		3.73			2.00			(5.89	)		8.36			4.98			(16.16	)
Total from investment operations		3.76			2.04			(5.90	)		8.43			5.02			(16.10	)
Distributions to shareholders from:
Net investment income		(0.06	)		(0.03	)		(0.00	)(g)		(0.08	)		(0.06	)		(0.04	)
Return of capital		—			—			—			—			(0.02	)		—
Total distributions		(0.06	)		(0.03	)		(0.00	)(g)		(0.08	)		(0.08	)		(0.04	)
Net asset value at end of period	$	26.19		$	22.49		$	20.48		$	26.38		$	18.03		$	13.09
Market price at end of period(c)	$	26.21		$	22.49		$	20.48		$	26.38		$	18.02		$	13.11
Net Asset Value Total Return:(d)		16.73	%(h)		9.95	%		(22.36	)%		46.84	%		38.41	%		(55.04	)%
Market Price Total Return(d)		16.82	%		9.95	%		(22.36	)%		46.93	%		38.13	%		(54.93	)%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	120,496		$	116,973		$	147,485		$	309,972		$	170,358		$	155,716
Ratio to average net assets of:
Expenses, after Waivers		0.62	%(e)		0.62	%		0.63	%		0.63	%		0.63	%		0.62	%
Expenses, prior to Waivers		0.62	%(e)		0.62	%		0.63	%		0.64	%		0.63	%		0.61	%
Net investment income (loss), after Waivers		0.22	%(e)		0.18	%		(0.03	)%		0.36	%		0.24	%		0.29	%
Portfolio turnover rate(f)		221	%		68	%		70	%		39	%		56	%		48	%

^(a)  Based on average shares outstanding.

^(b)  Net investment income per share and the ratio of net investment income to average net assets include a special cash dividend received of $1 per share owned of Tellabs, Inc. on December 24, 2012. Net investment loss per share and the ratio of net investment loss to average net assets excluding the special dividend are $(0.01) and (0.05)%, respectively.

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

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

^(e)  Annualized.

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

^(g)  Amount represents less than $0.005.

^(h)  Amount includes the effect of the Adviser pay-in for an economic loss of $0.43 per share. Had the pay-in not been made, the net asset value total return would have been 14.81%.

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

33

Financial Highlights (continued)

PowerShares Dynamic Pharmaceuticals Portfolio (PJP)

	Six-Months Ended October 31,  2013 (Unaudited)			Year Ended April 30,
				2013			2012			2011			2010			2009
Per Share Operating Performance:
Net asset value at beginning of period	$	40.72		$	32.00		$	26.15		$	19.55		$	13.91		$	17.20
Net investment income(a)		0.13			0.54	(b)		0.22			0.17			0.14			0.15
Net realized and unrealized gain (loss) on investments		7.21			8.72			5.83			6.56			5.76			(3.32	)
Total from investment operations		7.34			9.26			6.05			6.73			5.90			(3.17	)
Distributions to shareholders from:
Net investment income		(0.16	)		(0.54	)		(0.20	)		(0.13	)		(0.26	)		(0.12	)
Net asset value at end of period	$	47.90		$	40.72		$	32.00		$	26.15		$	19.55		$	13.91
Market price at end of period(c)	$	47.97		$	40.72		$	31.99		$	26.17		$	19.54		$	13.92
Net Asset Value Total Return:(d)		18.07	%		29.25	%		23.29	%		34.55	%		42.69	%		(18.52	)%
Market Price Total Return(d)		18.24	%		29.29	%		23.16	%		34.73	%		42.51	%		(18.41	)%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	744,769		$	468,305		$	270,385		$	87,606		$	57,662		$	104,349
Ratio to average net assets of:
Expenses, after Waivers		0.57	%(e)		0.63	%		0.63	%		0.63	%		0.63	%		0.63	%
Expenses, prior to Waivers		0.57	%(e)		0.63	%		0.64	%		0.76	%		0.74	%		0.66	%
Net investment income, after Waivers		0.57	%(e)		1.52	%(b)		0.77	%		0.78	%		0.83	%		0.95	%
Portfolio turnover rate(f)		19	%		24	%		23	%		9	%		35	%		31	%

PowerShares Dynamic Retail Portfolio (PMR)

	Six-Months Ended October 31,  2013 (Unaudited)			Year Ended April 30,
				2013			2012			2011			2010			2009
Per Share Operating Performance:
Net asset value at beginning of period	$	29.12		$	25.98		$	21.88		$	18.67		$	14.64		$	15.99
Net investment income(a)		0.11			0.66			0.16			0.18			0.06			0.05
Net realized and unrealized gain (loss) on investments		5.44			3.11			4.17			3.21			4.08			(1.36	)
Total from investment operations		5.55			3.77			4.33			3.39			4.14			(1.31	)
Distributions to shareholders from:
Net investment income		(0.15	)		(0.63	)		(0.23	)		(0.18	)		(0.11	)		(0.04	)
Net asset value at end of period	$	34.52		$	29.12		$	25.98		$	21.88		$	18.67		$	14.64
Market price at end of period(c)	$	34.57		$	29.11		$	25.98		$	21.90		$	18.68		$	14.64
Net Asset Value Total Return:(d)		19.13	%		14.87	%		20.06	%		18.35	%		28.49	%		(8.11	)%
Market Price Total Return(d)		19.34	%		14.83	%		19.95	%		18.39	%		28.56	%		(8.11	)%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	34,517		$	24,750		$	76,643		$	13,130		$	24,273		$	77,607
Ratio to average net assets of:
Expenses, after Waivers		0.63	%(e)		0.63	%		0.63	%		0.63	%		0.63	%		0.63	%
Expenses, prior to Waivers		0.82	%(e)		0.74	%		0.87	%		1.63	%		0.89	%		1.08	%
Net investment income, after Waivers		0.66	%(e)		2.59	%		0.75	%		1.01	%		0.44	%		0.45	%
Portfolio turnover rate(f)		92	%		83	%		111	%		102	%		52	%		53	%

^(a)  Based on average shares outstanding.

^(b)  Net investment income per share and the ratio of net investment income to average net assets include a special cash dividend received of $4 per share owned of Warner Chilcott PLC. on August 29, 2012. Net investment income per share and the ratio of net investment income to average net assets excluding the special dividend are $0.32 and 0.91%, respectively.

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

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

^(e)  Annualized.

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

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

34

Financial Highlights (continued)

PowerShares Dynamic Semiconductors Portfolio (PSI)

	Six-Months Ended October 31,  2013 (Unaudited)			Year Ended April 30,
				2013			2012			2011			2010			2009
Per Share Operating Performance:
Net asset value at beginning of period	$	15.22		$	15.75		$	18.19		$	14.29		$	10.39		$	16.32
Net investment income(a)		0.05			0.11			0.06			0.01			0.05			0.04
Net realized and unrealized gain (loss) on investments		2.62			(0.52	)		(2.47	)		3.92			3.91			(5.92	)
Total from investment operations		2.67			(0.41	)		(2.41	)		3.93			3.96			(5.88	)
Distribution to shareholder from:
Net investment income		(0.11	)		(0.12	)		(0.03	)		(0.01	)		(0.06	)		(0.05	)
Return of capital		—			—			—			(0.02	)		(0.00	)(b)		—
Total distributions		(0.11	)		(0.12	)		(0.03	)		(0.03	)		(0.06	)		(0.05	)
Net asset value at end of period	$	17.78		$	15.22		$	15.75		$	18.19		$	14.29		$	10.39
Market price at end of period(c)	$	17.73		$	15.19		$	15.71		$	18.20		$	14.29		$	10.39
Net Asset Value Total Return:(d)		17.60	%		(2.56	)%		(13.20	)%		27.57	%		38.16	%		(36.01	)%
Market Price Total Return(d)		17.50	%		(2.50	)%		(13.47	)%		27.64	%		38.16	%		(36.01	)%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	15,111		$	16,744		$	21,261		$	42,749		$	28,573		$	36,373
Ratio to average net assets of:
Expenses, after Waivers		0.62	%(e)		0.63	%		0.63	%		0.63	%		0.63	%		0.63	%
Expenses, prior to Waivers		1.04	%(e)		1.05	%		1.02	%		0.97	%		0.90	%		0.82	%
Net investment income, after Waivers		0.59	%(e)		0.77	%		0.42	%		0.04	%		0.39	%		0.32	%
Portfolio turnover rate(f)		71	%		91	%		57	%		64	%		68	%		65	%

PowerShares Dynamic Software Portfolio (PSJ)

	Six-Months Ended October 31,  2013 (Unaudited)			Year Ended April 30,
				2013			2012			2011			2010			2009
Per Share Operating Performance:
Net asset value at beginning of period	$	30.16		$	26.87		$	27.47		$	22.54		$	15.37		$	17.53
Net investment income (loss)(a)		(0.00	)(b)		(0.01	)		(0.07	)		(0.07	)		(0.07	)		(0.06	)
Net realized and unrealized gain (loss) on investments		3.48			3.30			(0.53	)		5.00			7.24			(2.10	)
Total from investment operations		3.48			3.29			(0.60	)		4.93			7.17			(2.16	)
Net asset value at end of period	$	33.64		$	30.16		$	26.87		$	27.47		$	22.54		$	15.37
Market price at end of period(c)	$	33.66		$	30.12		$	26.87		$	27.48		$	22.55		$	15.37
Net Asset Value Total Return:(d)		11.54	%		12.24	%		(2.19	)%		21.87	%		46.65	%		(12.32	)%
Market Price Total Return(d)		11.75	%		12.09	%		(2.22	)%		21.86	%		46.71	%		(12.37	)%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	55,498		$	48,257		$	49,710		$	83,774		$	67,626		$	36,896
Ratio to average net assets of:
Expenses, after Waivers		0.63	%(e)		0.63	%		0.63	%		0.63	%		0.63	%		0.63	%
Expenses, prior to Waivers		0.71	%(e)		0.74	%		0.78	%		0.77	%		0.75	%		0.97	%
Net investment income (loss), after Waivers		(0.00	)%(e)(g)		(0.03	)%		(0.29	)%		(0.29	)%		(0.38	)%		(0.42	)%
Portfolio turnover rate(f)		80	%		95	%		100	%		46	%		33	%		53	%

^(a)  Based on average shares outstanding.

^(b)  Amount represents less than $0.005.

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

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

^(e)  Annualized.

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

^(g)  Amount represents less than 0.005%.

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

35

Notes to Financial Statements

PowerShares Exchange-Traded Fund Trust

October 31, 2013

(Unaudited)

Note 1. Organization

PowerShares Exchange-Traded Fund Trust (the “Trust”) was organized as a Massachusetts business trust on June 9, 2000 and is authorized to have multiple series of portfolios. The Trust is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As of October 31, 2013, the Trust offered fifty-five portfolios. This report includes the following portfolios:

Full Name	Short Name
PowerShares Dynamic Biotechnology & Genome Portfolio (PBE)	“Dynamic Biotechnology & Genome Portfolio”
PowerShares Dynamic Building & Construction Portfolio (PKB)	“Dynamic Building & Construction Portfolio”
PowerShares Dynamic Energy Exploration & Production Portfolio (PXE)	“Dynamic Energy Exploration & Production Portfolio”
PowerShares Dynamic Food & Beverage Portfolio (PBJ)	“Dynamic Food & Beverage Portfolio”
PowerShares Dynamic Leisure and Entertainment Portfolio (PEJ)	“Dynamic Leisure and Entertainment Portfolio”
PowerShares Dynamic Media Portfolio (PBS)	“Dynamic Media Portfolio”
PowerShares Dynamic Networking Portfolio (PXQ)	“Dynamic Networking Portfolio”
PowerShares Dynamic Oil & Gas Services Portfolio (PXJ)	“Dynamic Oil & Gas Services Portfolio”
PowerShares Dynamic Pharmaceuticals Portfolio (PJP)	“Dynamic Pharmaceuticals Portfolio”
PowerShares Dynamic Retail Portfolio (PMR)	“Dynamic Retail Portfolio”
PowerShares Dynamic Semiconductors Portfolio (PSI)	“Dynamic Semiconductors Portfolio”
PowerShares Dynamic Software Portfolio (PSJ)	“Dynamic Software Portfolio”

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

The market prices of each Fund’s Shares may differ to some degree from the Fund’s net asset value (“NAV”). Unlike conventional mutual funds, each Fund issues and redeems Shares on a continuous basis, at NAV, only in a large specified number of Shares, each called a “Creation Unit.” Creation Units are issued and redeemed generally in-kind for securities included in each Fund’s 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 generally correspond (before fees and expenses) to the price and yield of its respective index listed below (each, an “Underlying Index”):

Fund	Index
Dynamic Biotechnology & Genome Portfolio	Dynamic Biotech & Genome IntellidexSM Index
Dynamic Building & Construction Portfolio	Dynamic Building & Construction IntellidexSM Index
Dynamic Energy Exploration & Production Portfolio	Dynamic Energy Exploration & Production IntellidexSM Index
Dynamic Food & Beverage Portfolio	Dynamic Food & Beverage IntellidexSM Index
Dynamic Leisure and Entertainment Portfolio	Dynamic Leisure and Entertainment IntellidexSM Index
Dynamic Media Portfolio	Dynamic Media IntellidexSM Index
Dynamic Networking Portfolio	Dynamic Networking IntellidexSM Index
Dynamic Oil & Gas Services Portfolio	Dynamic Oil Services IntellidexSM Index
Dynamic Pharmaceuticals Portfolio	Dynamic Pharmaceutical IntellidexSM Index
Dynamic Retail Portfolio	Dynamic Retail IntellidexSM Index
Dynamic Semiconductors Portfolio	Dynamic Semiconductor IntellidexSM Index
Dynamic Software Portfolio	Dynamic Software IntellidexSM Index

Note 2. Significant Accounting Policies

The preparation of the financial statements in accordance with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements, including estimates and assumptions related to taxation. Actual results could differ from these estimates. In addition, the 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.

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A. Security Valuation

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

A security listed or traded on an exchange (except convertible 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 and closed-end registered investment companies that do not trade on an exchange are valued at the end of day NAV per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.

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

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

Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.

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

Index 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 buy or sell a security unless that security is added or removed, respectively, from its respective Underlying Index, even if that security generally is underperforming.

Equity Risk. The Funds may invest in equity securities. Equity risk is the risk that the value of the securities that a Fund holds will fall due to general market and economic conditions, perceptions regarding the industries in which the issuers of securities a Fund holds participate or factors relating to specific companies in which a Fund invests. For example, an adverse event, such as an unfavorable

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earnings report, may depress the value of securities a Fund holds; the price of securities may be particularly sensitive to general movements in the stock market; or a drop in the stock market may depress the price of most or all of the securities a Fund holds. In addition, securities of an issuer in a Fund’s portfolio may decline in price if the issuer fails to make anticipated dividend payments because, among other reasons, the issuer of the security experiences a decline in its financial condition.

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

Non-Diversified Fund Risk. Each Fund is non-diversified and can invest a greater portion of its assets in securities of individual issuers than diversified funds. As a result, changes in the market value of a single investment could cause greater fluctuations in Share price than would occur in a diversified fund. This may increase a Fund’s volatility and cause the performance of a relatively small number of issuers to have a greater impact on a Fund’s performance.

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

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

C. Federal Income Taxes

Each Fund intends to comply with the provisions of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), applicable to regulated investment companies and to distribute substantially all of the Fund’s taxable earnings to its shareholders. As such, the Funds will not be subject to federal income taxes on otherwise taxable income (including net realized gains) that is distributed to the shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.

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

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

D. Investment Transactions and Investment Income

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

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

E. Expenses

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

Each Fund is responsible for all of its expenses, including the investment advisory fees, costs of transfer agency, custody, fund administration, legal, audit and other services, interest, taxes, brokerage commissions and other expenses connected with executions of portfolio transactions, sub-licensing fees related to its respective Underlying Index, any distribution fees or expenses, litigation expenses, fees payable to the Trust’s Board members who are not “interested persons” (as defined in the 1940 Act) of the Trust (the “Independent Trustees”) or the Adviser, expenses incurred in connection with the Board members’ services, including travel expenses and legal fees of counsel for the Independent Trustees, acquired fund fees and expenses, if any, and extraordinary expenses.

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F. Dividends and Distributions to Shareholders

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

G. Securities Lending

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

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 for the selection and ongoing monitoring of the Funds’ investments, managing the Funds’ business affairs and providing certain clerical, bookkeeping and other administrative services. Each Fund has agreed to pay the Adviser an annual fee of 0.50% of the Fund’s average daily net assets.

The Adviser has entered into an Amended and Restated Excess Expense Agreement (the “Expense Agreement”) with the Trust, pursuant to which the Adviser has agreed to waive fees and/or pay Fund expenses to the extent necessary to prevent the operating expenses (excluding interest expenses, brokerage commissions and other trading expenses, sub-licensing fees, offering costs, taxes, acquired fund fees and expenses, if any, and extraordinary expenses) of each Fund from exceeding 0.60% of the Fund’s average daily net assets per year (the “Expense Cap”), through at least August 31, 2014. Offering costs excluded from the Expense Cap are: (a) initial legal fees pertaining to the Funds’ Shares offered for sale; (b) initial Securities and Exchange Commission and state registration fees; and (c) initial fees paid to be listed on an exchange. Unless the Adviser continues the fee waiver agreement, it will terminate on August 31, 2014. The fee waiver agreement cannot be terminated during its term. The Adviser did not waive fees and/or pay fund expenses during the period under this expense limitation for Dynamic Biotechnology & Genome Portfolio, Dynamic Building & Construction Portfolio, Dynamic Food & Beverage Portfolio, Dynamic Leisure and Entertainment Portfolio, Dynamic Media Portfolio, Dynamic Oil & Gas Services Portfolio and Dynamic Pharmaceuticals Portfolio.

Further, the Adviser has contractually agreed, through at least August 31, 2015, to waive the advisory fee payable by each Fund in an amount equal to 100% of the net advisory fees the Adviser’s affiliate receives from the affiliated money market funds on investments by a Fund (excluding investments of cash collateral from securities lending) in such affiliated money market funds.

For the six-month period ended October 31, 2013, the Adviser waived fees and/or paid Fund expenses for each Fund, in the following amounts:

Dynamic Biotechnology & Genome Portfolio	$	33
Dynamic Building & Construction Portfolio		24
Dynamic Energy Exploration & Production Portfolio		1,668
Dynamic Food & Beverage Portfolio		41
Dynamic Leisure and Entertainment Portfolio		26
Dynamic Media Portfolio		43
Dynamic Networking Portfolio		31,796
Dynamic Oil & Gas Services Portfolio		30
Dynamic Pharmaceuticals Portfolio		96
Dynamic Retail Portfolio		30,497
Dynamic Semiconductors Portfolio		35,669
Dynamic Software Portfolio		20,662

For the six-month period ended October 31, 2013, the Adviser reimbursed Dynamic Oil & Gas Services Portfolio for an economic loss of $2,071,089 as a result of trading related activity.

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The Expense Agreement provides that the fees waived or expenses borne by the Adviser are subject to recapture by the Adviser for up to three years, but no recapture payment will be made by a Fund if it would result in the Fund exceeding its Expense Cap as specified above.

The amounts available for potential future recapture by the Adviser under the Expense Agreement and the expiration schedule at October 31, 2013 are as follows:

	Total Potential Recapture Amounts		Potential Recapture Amounts Expiring
			04/30/14		04/30/15		04/30/16		10/31/16
Dynamic Building & Construction Portfolio	$	205,620	$	63,254	$	107,359	$	35,007	$	—
Dynamic Energy Exploration & Production Portfolio		140,303		45,801		61,176		31,709		1,617
Dynamic Food & Beverage Portfolio		19,515		9,023		10,492		—		—
Dynamic Leisure and Entertainment Portfolio		172,325		45,238		87,312		39,775		—
Dynamic Media Portfolio		37,194		10,503		24,252		2,439		—
Dynamic Networking Portfolio		162,004		29,990		47,952		52,287		31,775
Dynamic Retail Portfolio		234,299		60,219		87,876		55,726		30,478
Dynamic Semiconductors Portfolio		265,298		56,812		99,564		73,270		35,652
Dynamic Software Portfolio		201,563		47,316		81,932		51,699		20,616

The Trust has entered into a Distribution Agreement with Invesco Distributors, Inc. (the “Distributor”), which serves as the distributor of Creation Units for each Fund. The Distributor does not maintain a secondary market in the Shares. The Funds are not charged any fees pursuant to the Distribution Agreement. The Distributor is an affiliate of the Adviser.

The Adviser has entered into a licensing agreement for each Fund with NYSE Arca, Inc. (the “Licensor”). Each Underlying Index name trademark is owned by the Licensor. These trademarks have been licensed to the Adviser for use with the Funds. Each Fund is entitled to use its Underlying Index pursuant to the Trust’s sub-licensing agreement with the Adviser. The Funds are required to pay the sub-licensing fees that are shown on the Statements of Operations. The Funds are not sponsored, endorsed, sold or promoted by the Licensor, and the Licensor makes no representation regarding the advisability of investing in any of these Funds.

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

Note 4. 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 October 31, 2013, the securities in each Fund were valued based on Level 1 inputs (see the Schedule of Investments for security categories). The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

Note 5. Tax Information

The amount and character of income and gains to be distributed are determined in accordance with federal income tax regulations, which may differ from GAAP. Reclassifications are made to the Funds’ capital accounts to reflect income and gains available for

40

distribution (or available capital loss carryforward) under federal income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Funds’ 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. Capital losses generated in years beginning after December 22, 2010 can be carried forward for an unlimited period, whereas previous losses expire in 8 tax years. Capital losses with an expiration period may not be used to offset capital gains until all net capital losses without an expiration date have been utilized. Capital loss carryforwards with no expiration date will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The ability to utilize capital loss carryforward in the future may be limited under Internal Revenue Code and related regulations based on the results of future transactions.

The following Funds had a capital loss carryforward as of April 30, 2013, which expires as follows:

															Post-effective no expiration
	2013		2014		2015		2016		2017		2018		2019		Short-term		Long-term		Total*
Dynamic Biotechnology & Genome Portfolio	$	—	$	321,497	$	19,612,223	$	15,818,255	$	34,286,844	$	50,397,332	$	12,898,182	$	29,306,093	$	—	$	162,640,426
Dynamic Building & Construction Portfolio		—		—		2,263,182		742,893		2,843,349		3,001,058		6,653,613		2,700,915		277,321		18,482,331
Dynamic Energy Exploration & Production Portfolio		—		—		285,311		3,232,521		7,646,917		21,471,013		1,361,799		7,985,637		1,014,593		42,997,791
Dynamic Food & Beverage Portfolio		—		—		239,185		1,260,041		7,585,250		10,245,302		—		23,852,022		786,201		43,968,001
Dynamic Leisure and Entertainment Portfolio		—		751,908		1,611,839		2,111,801		2,895,936		2,889,449		2,356,106		7,583,457		—		20,200,496
Dynamic Media Portfolio		—		545,973		3,187,134		2,505,039		4,930,761		5,161,647		6,294,489		18,655,535		973,678		42,254,256
Dynamic Networking Portfolio		—		383,187		1,939,441		1,064,275		1,975,581		512,618		730,670		18,934,345		5,521,809		31,061,926
Dynamic Oil & Gas Services Portfolio		—		—		15,026,862		7,909,602		24,680,663		85,028,926		35,877,910		18,344,489		7,583,730		194,452,182
Dynamic Pharmaceuticals Portfolio		164,751		66,659		644,797		1,727,610		2,128,715		15,494,879		1,618,918		2,355,738		1,193,703		25,395,770
Dynamic Retail Portfolio		—		—		937,070		1,908,967		2,427,604		1,816,180		2,176,015		6,951,511		144,198		16,361,545
Dynamic Semiconductors Portfolio		—		271,588		9,158,832		10,196,415		14,001,359		10,902,954		2,120,823		5,209,256		1,053,566		52,914,793
Dynamic Software Portfolio		—		108,427		3,017,278		1,542,190		7,095,351		2,938,722		3,242,208		5,710,603		—		23,654,779

* 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 October 31, 2013, the cost of securities purchased and proceeds from sales of securities, excluding short-term securities, money market funds and in-kind transactions, were as follows:

	Purchases		Sales
Dynamic Biotechnology & Genome Portfolio	$	74,619,039	$	74,596,733
Dynamic Building & Construction Portfolio		75,231,461		74,660,344
Dynamic Energy Exploration & Production Portfolio		52,366,483		51,566,145
Dynamic Food & Beverage Portfolio		152,668,056		151,257,555
Dynamic Leisure and Entertainment Portfolio		93,681,438		93,423,132
Dynamic Media Portfolio		107,570,595		108,192,707
Dynamic Networking Portfolio		12,361,797		12,512,269
Dynamic Oil & Gas Services Portfolio		254,753,829		252,130,380
Dynamic Pharmaceuticals Portfolio		118,844,146		117,624,436
Dynamic Retail Portfolio		29,098,844		28,484,737
Dynamic Semiconductors Portfolio		11,593,412		11,568,230
Dynamic Software Portfolio		41,579,060		41,266,497

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For the six-month period ended October 31, 2013, in-kind transactions associated with creations and redemptions were as follows:

	Securities Received		Securities Delivered
Dynamic Biotechnology & Genome Portfolio	$	138,951,319	$	73,190,514
Dynamic Building & Construction Portfolio		40,007,647		55,821,471
Dynamic Energy Exploration & Production Portfolio		110,696,486		119,352,590
Dynamic Food & Beverage Portfolio		133,781,329		165,004,143
Dynamic Leisure and Entertainment Portfolio		124,087,507		54,215,114
Dynamic Media Portfolio		223,941,549		147,361,276
Dynamic Networking Portfolio		8,251,681		11,246,314
Dynamic Oil & Gas Services Portfolio		58,608,192		73,263,072
Dynamic Pharmaceuticals Portfolio		229,328,319		48,493,248
Dynamic Retail Portfolio		28,348,145		24,012,936
Dynamic Semiconductors Portfolio		8,096,512		12,501,813
Dynamic Software Portfolio		21,755,795		20,638,970

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

At October 31, 2013, 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)
Dynamic Biotechnology & Genome Portfolio	$	214,496,181	$	47,129,634	$	54,272,321	$	(7,142,687	)
Dynamic Building & Construction Portfolio		84,170,924		9,537,530		11,119,145		(1,581,615	)
Dynamic Energy Exploration & Production Portfolio		99,846,854		4,828,321		8,554,747		(3,726,426	)
Dynamic Food & Beverage Portfolio		216,558,882		13,837,650		17,635,647		(3,797,997	)
Dynamic Leisure and Entertainment Portfolio		154,597,716		25,657,404		25,834,971		(177,567	)
Dynamic Media Portfolio		272,141,022		30,976,055		32,745,078		(1,769,023	)
Dynamic Networking Portfolio		28,556,440		3,859,427		5,335,985		(1,476,558	)
Dynamic Oil & Gas Services Portfolio		110,006,096		10,620,102		13,630,504		(3,010,402	)
Dynamic Pharmaceuticals Portfolio		593,313,417		151,629,082		159,778,066		(8,148,984	)
Dynamic Retail Portfolio		30,392,493		4,151,210		4,526,685		(375,475	)
Dynamic Semiconductors Portfolio		13,278,646		1,893,305		2,081,120		(187,815	)
Dynamic Software Portfolio		46,694,538		8,899,029		9,939,214		(1,040,185	)

Note 7. Trustees’ Fees

The Funds compensate each Independent Trustee. The Trustee who is an “interested person” (the “Non-Independent Trustee”) of the Trust does not receive any Trustees’ fees.

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

Note 8. Capital

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

42

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

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

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.

43

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Proxy Voting Policies and Procedures

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

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

Quarterly Portfolios

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

Frequency Distribution of Discounts and Premiums

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

©2013 Invesco PowerShares Capital Management LLC			P-PS-SAR-7
3500 Lacey Road, Suite 700 Downers Grove, IL 60515
invescopowershares.com    800.983.0903		@PowerShares

October 31, 2013

2013 Semi-Annual Report to Shareholders

PYZ	PowerShares Dynamic Basic Materials Sector Portfolio
PEZ	PowerShares Dynamic Consumer Discretionary Sector Portfolio
PSL	PowerShares Dynamic Consumer Staples Sector Portfolio
PXI	PowerShares Dynamic Energy Sector Portfolio
PFI	PowerShares Dynamic Financial Sector Portfolio
PTH	PowerShares Dynamic Healthcare Sector Portfolio
PRN	PowerShares Dynamic Industrials Sector Portfolio
PTF	PowerShares Dynamic Technology Sector Portfolio
PUI	PowerShares Dynamic Utilities Portfolio
PNQI	PowerShares NASDAQ Internet Portfolio

Table of Contents

Fees and Expenses	3
Sector Portfolios
Schedules of Investments
PowerShares Dynamic Basic Materials Sector Portfolio (PYZ)	5
PowerShares Dynamic Consumer Discretionary Sector Portfolio (PEZ)	7
PowerShares Dynamic Consumer Staples Sector Portfolio (PSL)	9
PowerShares Dynamic Energy Sector Portfolio (PXI)	11
PowerShares Dynamic Financial Sector Portfolio (PFI)	13
PowerShares Dynamic Healthcare Sector Portfolio (PTH)	15
PowerShares Dynamic Industrials Sector Portfolio (PRN)	17
PowerShares Dynamic Technology Sector Portfolio (PTF)	19
PowerShares Dynamic Utilities Portfolio (PUI)	21
PowerShares NASDAQ Internet Portfolio (PNQI)	23
Statements of Assets and Liabilities	26
Statements of Operations	28
Statements of Changes in Net Assets	30
Financial Highlights	34
Notes to Financial Statements	39

2

Fees and Expenses

As a shareholder of a Fund of the PowerShares Exchange-Traded Fund Trust (excluding PowerShares NASDAQ Internet Portfolio), you incur advisory fees and other Fund expenses. As a shareholder of a Fund of the PowerShares NASDAQ Internet Portfolio, you incur a unitary management fee. In addition to the unitary management fee, a shareholder may pay distribution fees, if any, brokerage expenses, taxes, interest, litigation expenses and other extraordinary expenses (including acquired fund fees and expenses, if any). The expense examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other funds.

The example is based on an investment of $1,000 invested at the beginning of the period and held through the six-month period ended October 31, 2013.

In pursuing its investment objective, PowerShares Dynamic Financial Sector 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, expenses shown in the table do not include the expenses of the underlying funds, which are borne indirectly by a Fund. If transaction costs and indirect expenses were included, your costs would have been higher.

	Beginning Account Value May 1, 2013		Ending Account Value October 31, 2013		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During the Six-Month Period(1)
PowerShares Dynamic Basic Materials Sector Portfolio (PYZ)
Actual	$	1,000.00	$	1,121.20		0.65	%	$	3.48
Hypothetical (5% return before expenses)		1,000.00		1,021.93		0.65			3.31
PowerShares Dynamic Consumer Discretionary Sector Portfolio (PEZ)
Actual		1,000.00		1,191.58		0.65			3.59
Hypothetical (5% return before expenses)		1,000.00		1,021.93		0.65			3.31
PowerShares Dynamic Consumer Staples Sector Portfolio (PSL)
Actual		1,000.00		1,095.08		0.65			3.43
Hypothetical (5% return before expenses)		1,000.00		1,021.93		0.65			3.31
PowerShares Dynamic Energy Sector Portfolio (PXI)
Actual		1,000.00		1,117.27		0.65			3.47
Hypothetical (5% return before expenses)		1,000.00		1,021.93		0.65			3.31
PowerShares Dynamic Financial Sector Portfolio (PFI)
Actual		1,000.00		1,138.64		0.65			3.50
Hypothetical (5% return before expenses)		1,000.00		1,021.93		0.65			3.31

3

Fees and Expenses (continued)

	Beginning Account Value May 1, 2013		Ending Account Value October 31, 2013		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During the Six-Month Period(1)
PowerShares Dynamic Healthcare Sector Portfolio (PTH)
Actual	$	1,000.00	$	1,153.86		0.65	%	$	3.53
Hypothetical (5% return before expenses)		1,000.00		1,021.93		0.65			3.31
PowerShares Dynamic Industrials Sector Portfolio (PRN)
Actual		1,000.00		1,225.32		0.65			3.65
Hypothetical (5% return before expenses)		1,000.00		1,021.93		0.65			3.31
PowerShares Dynamic Technology Sector Portfolio (PTF)
Actual		1,000.00		1,147.22		0.65			3.52
Hypothetical (5% return before expenses)		1,000.00		1,021.93		0.65			3.31
PowerShares Dynamic Utilities Portfolio (PUI)
Actual		1,000.00		1,037.48		0.63			3.24
Hypothetical (5% return before expenses)		1,000.00		1,022.03		0.63			3.21
PowerShares Dynamic NASDAQ Internet Portfolio (PNQI)
Actual		1,000.00		1,356.71		0.60			3.56
Hypothetical (5% return before expenses)		1,000.00		1,022.18		0.60			3.06

⁽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 October 31, 2013. Expenses are calculated by multiplying the Fund’s annualized expense ratio by the average account value of the period, then multiplying the result by 184/365.

4

Portfolio Composition

PowerShares Dynamic Basic Materials Sector Portfolio (PYZ)

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of October 31, 2013 (Unaudited)
Specialty Chemicals	28.8
Paper Products	10.8
Diversified Chemicals	10.1
Paper Packaging	10.0
Commodity Chemicals	8.8
Fertilizers & Agricultural Chemicals	7.6
Industrial Gases	7.3
Steel	5.8
Metal & Glass Containers	5.1
Forest Products	2.8
Diversified Metals & Mining	1.6
Aluminum	1.2
Money Market Fund Plus Other Assets Less Liabilities	0.1

Schedule of Investments^(a)

PowerShares Dynamic Basic Materials Sector Portfolio (PYZ)

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—99.9%
		Aluminum—1.2%
	13,868	Kaiser Aluminum Corp.	$	935,396
		Commodity Chemicals—8.8%
	23,946	Axiall Corp.		931,260
	24,724	Koppers Holdings, Inc.		1,100,465
	25,051	LyondellBasell Industries NV, Class A		1,868,805
	79,812	PetroLogistics LP		1,033,565
	17,368	Westlake Chemical Corp.		1,865,671
				6,799,766
		Diversified Chemicals—10.1%
	46,987	Dow Chemical Co. (The)		1,854,577
	31,037	E.I. du Pont de Nemours & Co.		1,899,464
	23,123	Eastman Chemical Co.		1,821,861
	54,774	Huntsman Corp.		1,271,852
	41,495	Olin Corp.		934,053
				7,781,807
		Diversified Metals & Mining—1.6%
	41,174	Hi-Crush Partners LP		1,248,807
		Fertilizers & Agricultural Chemicals—7.6%
	9,233	CF Industries Holdings, Inc.		1,990,635
	42,193	Mosaic Co. (The)		1,934,549
	18,185	Scotts Miracle-Gro Co. (The), Class A		1,067,823
	4,484	Terra Nitrogen Co. LP		916,216
				5,909,223

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Forest Products—2.8%
	41,495	Boise Cascade Co.(b)	$	1,062,687
	64,073	Louisiana-Pacific Corp.(b)		1,089,882
				2,152,569
		Industrial Gases—7.3%
	17,205	Air Products & Chemicals, Inc.		1,875,517
	17,288	Airgas, Inc.		1,885,602
	14,969	Praxair, Inc.		1,866,784
				5,627,903
		Metal & Glass Containers—5.1%
	22,056	Crown Holdings, Inc.(b)		961,642
	17,793	Greif, Inc., Class A		951,747
	51,645	Myers Industries, Inc.		920,314
	33,763	Owens-Illinois, Inc.(b)		1,073,326
				3,907,029
		Paper Packaging—10.0%
	22,417	Avery Dennison Corp.		1,056,289
	24,090	Bemis Co., Inc.		961,191
	115,348	Graphic Packaging Holding Co.(b)		968,923
	26,738	MeadWestvaco Corp.		931,820
	18,072	Packaging Corp. of America		1,125,524
	15,816	Rock-Tenn Co., Class A		1,692,470
	33,751	Sealed Air Corp.		1,018,605
				7,754,822

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

5

PowerShares Dynamic Basic Materials Sector Portfolio (PYZ) (continued)

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Paper Products—10.8%
	14,523	Domtar Corp.	$	1,230,243
	37,224	International Paper Co.		1,660,563
	22,822	KapStone Paper and Packaging Corp.		1,185,831
	26,190	Neenah Paper, Inc.		1,077,457
	37,414	P.H. Glatfelter Co.		980,247
	76,014	Resolute Forest Products(b)		1,215,464
	16,737	Schweitzer-Mauduit International, Inc.		1,035,685
				8,385,490
		Specialty Chemicals—28.8%
	20,028	Balchem Corp.		1,146,803
	35,689	Celanese Corp., Series A		1,998,941
	12,818	Cytec Industries, Inc.		1,065,048
	19,237	Ecolab, Inc.		2,039,122
	59,389	FutureFuel Corp.		1,033,962
	23,425	Innospec, Inc.		1,078,955
	12,132	International Flavors & Fragrances, Inc.		1,002,710
	21,589	Minerals Technologies, Inc.		1,222,585
	3,496	NewMarket Corp.		1,088,515
	33,728	OM Group, Inc.(b)		1,146,752
	35,475	PolyOne Corp.		1,074,893
	11,250	PPG Industries, Inc.		2,054,025
	14,445	Quaker Chemical Corp.		1,096,520
	28,209	RPM International, Inc.		1,092,252
	23,120	Sensient Technologies Corp.		1,205,246
	21,309	Sigma-Aldrich Corp.		1,841,737
	11,929	W.R. Grace & Co.(b)		1,093,412
				22,281,478
		Steel—5.8%
	45,929	Cliffs Natural Resources, Inc.		1,179,457
	14,373	Reliance Steel & Aluminum Co.		1,053,397
	41,639	Suncoke Energy Partners LP		1,085,945
	28,759	Worthington Industries, Inc.		1,165,890
				4,484,689
		Total Common Stocks and Other Equity Interests (Cost $64,990,972)		77,268,979
		Money Market Fund—0.2%
	119,300	Premier Portfolio—Institutional Class (c) (Cost $119,300)		119,300
		Total Investments (Cost $65,110,272)—100.1%		77,388,279
		Other assets less liabilities—(0.1)%		(40,694	)
		Net Assets—100.0%	$	77,347,585

Notes to Schedule of Investments:

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

^(b)  Non-income producing security.

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

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

6

Portfolio Composition

PowerShares Dynamic Consumer Discretionary Sector Portfolio (PEZ)

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of October 31, 2013 (Unaudited)
Auto Parts & Equipment	16.8
Restaurants	12.9
Movies & Entertainment	9.1
Broadcasting	8.0
Home Improvement Retail	6.4
Computer & Electronics Retail	5.2
Cable & Satellite	5.1
Automobile Manufacturers	5.0
Casinos & Gaming	5.0
Education Services	4.8
Automotive Retail	3.6
Apparel Retail	3.4
Leisure Products	2.8
Specialized Consumer Services	2.5
Apparel, Accessories & Luxury Goods	1.5
Publishing	1.5
Distributors	1.4
Leisure Facilities	1.4
Tires & Rubber	1.3
Advertising	1.2
Internet Retail	1.2
Money Market Fund Plus Other Assets Less Liabilities	(0.1	)

Schedule of Investments^(a)

PowerShares Dynamic Consumer Discretionary Sector Portfolio (PEZ)

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.1%
		Advertising—1.2%
	17,169	National CineMedia, Inc.	$	300,801
		Apparel Retail—3.4%
	5,805	Children’s Place Retail Stores, Inc. (The)(b)		316,895
	13,995	Gap, Inc. (The)		517,675
				834,570
		Apparel, Accessories & Luxury Goods—1.5%
	5,190	Hanesbrands, Inc.		353,543
		Auto Parts & Equipment—16.8%
	5,860	BorgWarner, Inc.		604,342

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Auto Parts & Equipment (continued)
	14,728	Dana Holding Corp.	$	288,669
	10,286	Delphi Automotive PLC (United Kingdom)		588,359
	16,999	Fox Factory Holding Corp.(b)		296,122
	13,964	Johnson Controls, Inc.		644,439
	4,490	Lear Corp.		347,481
	23,692	Modine Manufacturing Co.(b)		315,577
	15,798	Remy International, Inc.		348,030
	4,469	TRW Automotive Holdings Corp.(b)		335,667
	4,311	Visteon Corp.(b)		332,335
				4,101,021

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

7

PowerShares Dynamic Consumer Discretionary Sector Portfolio (PEZ) (continued)

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Automobile Manufacturers—5.0%
	34,957	Ford Motor Co.	$	598,114
	16,607	General Motors Co.(b)		613,629
				1,211,743
		Automotive Retail—3.6%
	4,704	Lithia Motors, Inc., Class A		295,646
	4,612	O’Reilly Automotive, Inc.(b)		571,012
				866,658
		Broadcasting—8.0%
	21,832	Belo Corp., Class A		299,753
	64,312	Cumulus Media, Inc., Class A(b)		384,586
	4,147	Liberty Media Corp., Class A(b)		634,118
	7,697	Scripps Networks Interactive, Inc., Class A		619,608
				1,938,065
		Cable & Satellite—5.1%
	13,446	Comcast Corp., Class A		639,761
	12,588	DISH Network Corp., Class A		606,741
				1,246,502
		Casinos & Gaming—5.0%
	4,280	Bally Technologies, Inc.(b)		313,039
	16,342	International Game Technology		307,230
	17,451	MGM Resorts International(b)		332,267
	7,867	Multimedia Games Holding Co., Inc.(b)		255,756
				1,208,292
		Computer & Electronics Retail—5.2%
	15,721	Best Buy Co., Inc.		672,859
	6,148	GameStop Corp., Class A		337,033
	17,046	hhgregg, Inc.(b)		264,383
				1,274,275
		Distributors—1.4%
	10,557	LKQ Corp.(b)		348,698
		Education Services—4.8%
	16,624	Apollo Group, Inc., Class A(b)		443,694
	18,686	Bridgepoint Education, Inc.(b)		366,246
	5,680	Capella Education Co.(b)		346,026
				1,155,966
		Home Improvement Retail—6.4%
	7,598	Home Depot, Inc. (The)		591,808
	12,352	Lowe’s Cos., Inc.		614,883
	3,105	Lumber Liquidators Holdings, Inc.(b)		354,560
				1,561,251
		Internet Retail—1.2%
	32,461	Orbitz Worldwide, Inc.(b)		299,940
		Leisure Facilities—1.4%
	7,272	Cedar Fair, LP		333,421
		Leisure Products—2.8%
	8,490	Brunswick Corp.		383,154
	28,218	Smith & Wesson Holding Corp.(b)		304,190
				687,344
		Movies & Entertainment—9.1%
	8,818	Lions Gate Entertainment Corp.(b)		304,926
	18,310	Live Nation Entertainment, Inc.(b)		355,946

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Movies & Entertainment (continued)
	17,255	Regal Entertainment Group, Class A	$	328,018
	9,350	Time Warner, Inc.		642,719
	7,113	Viacom, Inc., Class B		592,442
				2,224,051
		Publishing—1.5%
	547	Washington Post Co. (The), Class B		351,896
		Restaurants—12.9%
	7,538	AFC Enterprises, Inc.(b)		336,044
	739	Biglari Holdings, Inc.(b)		322,219
	7,628	CEC Entertainment, Inc.		353,558
	5,024	Domino’s Pizza, Inc.		336,909
	7,817	Jack in the Box, Inc.(b)		317,995
	15,654	Krispy Kreme Doughnuts, Inc.(b)		379,766
	4,759	Red Robin Gourmet Burgers, Inc.(b)		362,541
	19,342	Sonic Corp.(b)		373,301
	40,833	Wendy’s Co. (The)		354,839
				3,137,172
		Specialized Consumer Services—2.5%
	17,074	Service Corp. International		307,502
	5,540	Steiner Leisure Ltd.(b)		310,351
				617,853
		Tires & Rubber—1.3%
	15,343	Goodyear Tire & Rubber Co. (The)		321,896
		Total Common Stocks and Other Equity Interests (Cost $21,764,356)		24,374,958
		Money Market Fund—0.2%
	55,183	Premier Portfolio—Institutional Class(c) (Cost $55,183)		55,183
		Total Investments (Cost $21,819,539)—100.3%		24,430,141
		Other assets less liabilities—(0.3)%		(67,113	)
		Net Assets—100.0%	$	24,363,028

Notes to Schedule of Investments:

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

^(b)  Non-income producing security.

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

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

8

Portfolio Composition

PowerShares Dynamic Consumer Staples Sector Portfolio (PSL)

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of October 31, 2013 (Unaudited)
Packaged Foods & Meats	35.1
Household Products	13.7
Personal Products	8.5
Tobacco	8.2
Drug Retail	7.5
Food Retail	7.0
Agricultural Products	5.4
Hypermarkets & Super Centers	5.0
Soft Drinks	4.0
Brewers	2.8
Food Distributors	2.8
Money Market Fund Plus Other Assets Less Liabilities	0.0

Schedule of Investments^(a)

PowerShares Dynamic Consumer Staples Sector Portfolio (PSL)

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks—100.0%
		Agricultural Products—5.4%
	26,333	Archer-Daniels-Midland Co.	$	1,077,020
	6,674	Bunge Ltd.		548,135
	17,524	Fresh Del Monte Produce, Inc.		465,963
				2,091,118
		Brewers—2.8%
	2,387	Boston Beer Co., Inc. (The), Class A (b)		548,031
	10,365	Molson Coors Brewing Co., Class B		559,710
				1,107,741
		Drug Retail—7.5%
	15,972	CVS Caremark Corp.		994,417
	146,165	Rite Aid Corp.(b)		779,059
	19,288	Walgreen Co.		1,142,621
				2,916,097
		Food Distributors—2.8%
	7,702	Andersons, Inc. (The)		571,334
	15,794	Sysco Corp.		510,778
				1,082,112
		Food Retail—7.0%
	7,669	Casey’s General Stores, Inc.		558,917
	20,237	Ingles Markets, Inc., Class A		522,317
	13,818	Kroger Co. (The)		591,963
	70,534	SUPERVALU, Inc.(b)		495,854
	10,765	Weis Markets, Inc.		550,845
				2,719,896

Number of Shares			Value
		Common Stocks (continued)
		Household Products—13.7%
	8,521	Church & Dwight Co., Inc.	$	555,143
	6,115	Clorox Co. (The)		551,512
	16,049	Colgate-Palmolive Co.		1,038,852
	5,117	Energizer Holdings, Inc.		502,029
	9,918	Kimberly-Clark Corp.		1,071,144
	11,904	Procter & Gamble Co. (The)		961,248
	8,692	WD-40 Co.		630,083
				5,310,011
		Hypermarkets & Super Centers—5.0%
	8,288	Costco Wholesale Corp.		977,984
	12,704	Wal-Mart Stores, Inc.		975,032
				1,953,016
		Packaged Foods & Meats—35.1%
	11,712	Campbell Soup Co.		498,580
	41,016	Chiquita Brands International, Inc.(b)		424,516
	14,954	ConAgra Foods, Inc.		475,687
	26,395	Dean Foods Co.(b)		514,702
	24,326	Flowers Foods, Inc.		616,421
	18,799	General Mills, Inc.		947,845
	5,860	Green Mountain Coffee Roasters, Inc.(b)		368,067
	10,083	Hershey Co. (The)		1,000,637
	15,652	Hillshire Brands Co.		513,855
	6,575	J & J Snack Foods Corp.		562,623
	4,765	J.M. Smucker Co. (The)		529,916
	15,272	Kellogg Co.		965,954
	17,909	Kraft Foods Group, Inc.		973,891

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

9

PowerShares Dynamic Consumer Staples Sector Portfolio (PSL) (continued)

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks (continued)
		Packaged Foods & Meats (continued)
	6,856	Lancaster Colony Corp.	$	568,979
	30,231	Mondelez International, Inc., Class A		1,016,971
	32,990	Pilgrim’s Pride Corp. (Brazil)(b)		467,468
	7,723	Sanderson Farms, Inc.		488,171
	189	Seaboard Corp.		515,970
	18,800	Snyders-Lance, Inc.		563,812
	16,863	Tootsie Roll Industries, Inc.		539,616
	7,777	TreeHouse Foods, Inc.(b)		569,743
	17,469	Tyson Foods, Inc., Class A		483,367
				13,606,791
		Personal Products—8.5%
	25,581	Avon Products, Inc.		447,668
	8,289	Herbalife Ltd. (Cayman Islands)		537,293
	19,034	Inter Parfums, Inc.		669,235
	6,041	Nu Skin Enterprises, Inc., Class A		706,374
	15,575	Prestige Brands Holdings, Inc.(b)		486,407
	6,659	USANA Health Sciences, Inc.(b)		454,344
				3,301,321
		Soft Drinks—4.0%
	13,522	Coca-Cola Enterprises, Inc.		564,273
	11,629	PepsiCo, Inc.		977,883
				1,542,156
		Tobacco—8.2%
	27,366	Altria Group, Inc.		1,018,836
	11,956	Lorillard, Inc.		609,876
	19,466	Reynolds American, Inc.		999,968
	10,317	Universal Corp.		547,111
				3,175,791
		Total Common Stocks (Cost $31,223,852)		38,806,050
		Money Market Fund—0.2%
	66,218	Premier Portfolio—Institutional Class(c) (Cost $66,218)		66,218
		Total Investments (Cost $31,290,070)—100.2%		38,872,268
		Other assets less liabilities— (0.2)%		(60,317	)
		Net Assets—100.0%	$	38,811,951

Notes to Schedule of Investments:

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

^(b)  Non-income producing security.

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

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

10

Portfolio Composition

PowerShares Dynamic Energy Sector Portfolio (PXI)

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of October 31, 2013 (Unaudited)
Oil & Gas Exploration & Production	31.8
Oil & Gas Equipment & Services	23.3
Oil & Gas Refining & Marketing	22.9
Oil & Gas Drilling	9.6
Coal & Consumable Fuels	6.3
Oil & Gas Storage & Transportation	3.6
Integrated Oil & Gas	2.5
Money Market Fund Plus Other Assets Less Liabilities	0.0

Schedule of Investments^(a)

PowerShares Dynamic Energy Sector Portfolio (PXI)

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Coal & Consumable Fuels—6.3%
	32,481	Alliance Holdings GP LP	$	1,937,167
	26,512	Alliance Resource Partners LP		2,012,526
	446,482	Arch Coal, Inc.		1,893,084
	126,794	Cloud Peak Energy, Inc.(b)		1,979,254
	116,034	Peabody Energy Corp.		2,260,342
				10,082,373
		Integrated Oil & Gas—2.5%
	48,884	Hess Corp.		3,969,381
		Oil & Gas Drilling—9.6%
	31,659	Helmerich & Payne, Inc.		2,455,156
	129,596	Nabors Industries Ltd.		2,265,338
	53,650	Noble Corp.		2,022,605
	347,695	Parker Drilling Co.(b)		2,503,404
	101,878	Patterson-UTI Energy, Inc.		2,471,560
	81,073	Transocean Ltd.		3,816,106
				15,534,169
		Oil & Gas Equipment & Services—23.3%
	97,211	C&J Energy Services, Inc.(b)		2,239,741
	13,173	Core Laboratories NV		2,466,249
	19,565	Dril-Quip, Inc.(b)		2,297,322
	72,760	Exterran Holdings, Inc.(b)		2,077,298
	76,229	Halliburton Co.		4,042,424
	79,736	Helix Energy Solutions Group, Inc.(b)		1,886,554
	299,215	Key Energy Services, Inc.(b)		2,339,861
	179,316	Newpark Resources, Inc.(b)		2,286,279
	25,726	Oceaneering International, Inc.		2,209,349
	22,370	Oil States International, Inc.(b)		2,430,053
	139,758	RPC, Inc.		2,563,162
	45,203	Schlumberger Ltd.		4,236,425
	81,259	Superior Energy Services, Inc.(b)		2,180,179

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Oil & Gas Equipment & Services (continued)
	129,177	Tesco Corp.(b)	$	2,219,261
	133,855	Weatherford International Ltd.(b)		2,200,576
				37,674,733
		Oil & Gas Exploration & Production—31.8%
	40,023	Anadarko Petroleum Corp.		3,813,792
	42,705	Apache Corp.		3,792,204
	48,497	Berry Petroleum Co., Class A		2,315,732
	58,254	Carrizo Oil & Gas, Inc.(b)		2,553,855
	23,813	Cimarex Energy Co.		2,508,700
	55,188	ConocoPhillips		4,045,280
	115,430	Denbury Resources, Inc.(b)		2,192,016
	23,297	EOG Resources, Inc.		4,156,185
	106,269	Marathon Oil Corp.		3,747,045
	62,887	Murphy Oil Corp.		3,793,344
	59,563	Noble Energy, Inc.		4,463,056
	50,914	Oasis Petroleum, Inc.(b)		2,711,170
	387,528	SandRidge Energy, Inc.(b)		2,456,927
	95,781	Southwestern Energy Co.(b)		3,564,969
	72,839	Stone Energy Corp.(b)		2,539,167
	39,544	Whiting Petroleum Corp.(b)		2,645,098
				51,298,540
		Oil & Gas Refining & Marketing—22.9%
	160,688	Alon USA Energy, Inc. (Israel)		1,941,111
	125,996	Alon USA Partners LP (Israel)		1,716,066
	46,609	CVR Energy, Inc.		1,851,309
	73,320	CVR Refining LP		1,784,609
	80,281	Delek US Holdings, Inc. (Israel)		2,051,180
	69,275	Emerge Energy Services LP		2,628,294
	44,869	HollyFrontier Corp.		2,066,666
	50,461	Marathon Petroleum Corp.		3,616,035
	95,813	Northern Tier Energy LP		2,228,610

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

11

PowerShares Dynamic Energy Sector Portfolio (PXI) (continued)

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Oil & Gas Refining & Marketing (continued)
	90,841	PBF Energy, Inc., Class A	$	2,391,844
	64,079	Phillips 66		4,128,610
	43,302	Tesoro Corp.		2,117,035
	102,979	Valero Energy Corp.		4,239,645
	68,045	Western Refining, Inc.		2,195,812
	52,314	World Fuel Services Corp.		1,995,779
				36,952,605
		Oil & Gas Storage & Transportation—3.6%
	71,363	Energy Transfer Partners LP		3,780,098
	88,817	PAA Natural Gas Storage LP		2,023,252
				5,803,350
		Total Common Stocks and Other Equity Interests (Cost $140,595,215)		161,315,151
		Money Market Fund—0.0%
	86,297	Premier Portfolio—Institutional Class(c) (Cost $86,296)		86,296
		Total Investments (Cost $140,681,511)—100.0%		161,401,447
		Other assets less liabilities—(0.0)%		(21,427	)
		Net Assets—100.0%	$	161,380,020

Notes to Schedule of Investments:

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

^(b)  Non-income producing security.

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

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

12

Portfolio Composition

PowerShares Dynamic Financial Sector Portfolio (PFI)

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of October 31, 2013 (Unaudited)
Property & Casualty Insurance	27.6
Life & Health Insurance	24.7
Regional Banks	17.5
Multi-line Insurance	9.2
Asset Management & Custody Banks	5.7
Diversified Banks	3.7
Investment Banking & Brokerage	3.7
Reinsurance	2.9
Other Diversified Financial Services	2.4
Consumer Finance	1.4
Thrifts & Mortgage Finance	1.2
Money Market Fund Plus Other Assets Less Liabilities	0.0

Schedule of Investments^(a)

PowerShares Dynamic Financial Sector Portfolio (PFI)

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Asset Management & Custody Banks—5.7%
	6,511	Ameriprise Financial, Inc.	$	654,616
	42,435	Fortress Investment Group LLC, Class A		350,089
	5,323	GAMCO Investors, Inc., Class A		380,647
				1,385,352
		Consumer Finance—1.4%
	8,077	Nelnet, Inc., Class A		344,323
		Diversified Banks—3.7%
	7,492	Comerica, Inc.		324,404
	13,654	Wells Fargo & Co.		582,889
				907,293
		Investment Banking & Brokerage—3.7%
	16,111	FXCM, Inc., Class A		264,059
	17,997	Investment Technology Group, Inc.(b)		288,312
	7,314	Raymond James Financial, Inc.		333,884
				886,255
		Life & Health Insurance—24.7%
	9,706	Aflac, Inc.		630,696
	15,444	American Equity Investment Life Holding Co.		321,853
	22,513	CNO Financial Group, Inc.		350,752
	7,271	FBL Financial Group, Inc., Class A		325,305
	13,342	Lincoln National Corp.		605,860
	12,144	MetLife, Inc.		574,533
	13,708	Principal Financial Group, Inc.		650,582
	7,321	Protective Life Corp.		337,352

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Life & Health Insurance (continued)
	7,491	Prudential Financial, Inc.	$	609,692
	5,848	StanCorp Financial Group, Inc.		344,447
	17,716	Symetra Financial Corp.		331,821
	4,441	Torchmark Corp.		323,571
	18,995	Unum Group		602,901
				6,009,365
		Multi-line Insurance—9.2%
	5,937	American Financial Group, Inc.		334,016
	12,073	American International Group, Inc.		623,570
	2,915	American National Insurance Co.		294,619
	5,768	Assurant, Inc.		337,313
	7,250	HCC Insurance Holdings, Inc.		330,962
	11,607	Horace Mann Educators Corp.		321,514
				2,241,994
		Other Diversified Financial Services—2.4%
	11,101	JPMorgan Chase & Co.		572,146
		Property & Casualty Insurance—27.6%
	6,394	ACE Ltd.		610,243
	11,705	Allstate Corp. (The)		621,067
	13,807	AMBAC Financial Group, Inc.(b)		278,763
	8,565	AmTrust Financial Services, Inc.		328,553
	5,739	Arch Capital Group Ltd.(b)		332,633
	8,601	Aspen Insurance Holdings Ltd.		335,525
	15,899	CNA Financial Corp.		645,340
	11,541	Employers Holdings, Inc.		347,038

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

13

PowerShares Dynamic Financial Sector Portfolio (PFI) (continued)

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Property & Casualty Insurance (continued)
	5,744	Hanover Insurance Group, Inc. (The)	$	336,254
	5,590	Navigators Group, Inc. (The)(b)		314,382
	21,546	Old Republic International Corp.		361,757
	13,343	Selective Insurance Group, Inc.		350,521
	10,002	Stewart Information Services Corp.		313,263
	7,020	Travelers Cos., Inc. (The)		605,826
	10,664	United Fire Group, Inc.		338,049
	18,976	XL Group PLC		580,096
				6,699,310
		Regional Banks—17.5%
	10,467	East West Bancorp, Inc.		352,633
	30,668	Fifth Third Bancorp		583,612
	13,460	First Interstate BancSystem, Inc.		337,981
	12,964	Glacier Bancorp, Inc.		358,195
	17,809	OFG Bancorp		263,751
	14,022	PrivateBancorp, Inc.		341,576
	13,610	S&T Bancorp, Inc.		333,717
	13,689	Sandy Spring Bancorp, Inc.		335,244
	95,911	Synovus Financial Corp.		311,711
	20,985	United Community Banks, Inc.(b)		327,156
	10,664	WesBanco, Inc.		313,522
	18,690	Western Alliance Bancorp(b)		395,293
				4,254,391
		Reinsurance—2.9%
	2,234	Everest Re Group Ltd.		343,455
	23,196	Third Point Reinsurance Ltd. (Bermuda)(b)		361,858
				705,313
		Thrifts & Mortgage Finance—1.2%
	4,724	BofI Holding, Inc.(b)		285,424
		Total Common Stocks and Other Equity Interests (Cost $21,439,238)		24,291,166
		Money Market Fund—0.3%
	79,064	Premier Portfolio—Institutional Class(c) (Cost $79,064)		79,064
		Total Investments (Cost $21,518,302)—100.3%		24,370,230
		Other assets less liabilities—(0.3)%		(68,808	)
		Net Assets—100.0%	$	24,301,422

Notes to Schedule of Investments:

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

^(b)  Non-income producing security.

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

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

14

Portfolio Composition

PowerShares Dynamic Healthcare Sector Portfolio (PTH)

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of October 31, 2013 (Unaudited)
Pharmaceuticals	15.1
Health Care Distributors	12.7
Life Sciences Tools & Services	11.9
Biotechnology	10.8
Managed Health Care	9.6
Health Care Services	9.5
Health Care Equipment	9.1
Health Care Supplies	8.6
Health Care Facilities	8.4
Health Care Technology	4.3
Money Market Fund Plus Other Assets Less Liabilities	(0.0	)

Schedule of Investments^(a)

PowerShares Dynamic Healthcare Sector Portfolio (PTH)

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks—100.0%
		Biotechnology—10.8%
	13,504	Celgene Corp.(b)	$	2,005,209
	31,363	Gilead Sciences, Inc.(b)		2,226,460
	21,442	Ligand Pharmaceuticals, Inc., Class B(b)		1,109,838
	39,398	Myriad Genetics, Inc.(b)		960,523
	129,858	PDL BioPharma, Inc.		1,050,551
	14,541	United Therapeutics Corp.(b)		1,287,169
				8,639,750
		Health Care Distributors—12.7%
	33,208	AmerisourceBergen Corp.		2,169,479
	37,595	Cardinal Health, Inc.		2,205,323
	10,202	Henry Schein, Inc.(b)		1,147,011
	15,568	McKesson Corp.		2,433,901
	6,779	MWI Veterinary Supply, Inc.(b)		1,075,420
	30,229	Owens & Minor, Inc.		1,131,169
				10,162,303
		Health Care Equipment—9.1%
	19,411	Becton, Dickinson and Co.		2,040,678
	178,668	Boston Scientific Corp.(b)		2,088,629
	21,825	ResMed, Inc.		1,129,226
	23,901	Zimmer Holdings, Inc.		2,090,620
				7,349,153
		Health Care Facilities—8.4%
	27,650	AmSurg Corp.(b)		1,185,909
	26,264	Community Health Systems, Inc.		1,145,898
	32,773	HealthSouth Corp.		1,150,660
	70,140	Kindred Healthcare, Inc.		973,543
	15,220	Universal Health Services, Inc., Class B		1,226,123

Number of Shares			Value
		Common Stocks (continued)
		Health Care Facilities (continued)
	37,781	VCA Antech, Inc.(b)	$	1,074,870
				6,757,003
		Health Care Services—9.5%
	63,294	Amedisys, Inc.(b)		1,030,426
	75,814	AMN Healthcare Services, Inc.(b)		940,093
	14,805	Chemed Corp.		1,004,075
	31,300	CorVel Corp.(b)		1,302,080
	43,876	ExamWorks Group, Inc.(b)		1,134,195
	10,589	MEDNAX, Inc.(b)		1,154,413
	18,965	Omnicare, Inc.		1,045,920
				7,611,202
		Health Care Supplies—8.6%
	33,079	Alere, Inc.(b)		1,115,755
	23,677	Align Technology, Inc.(b)		1,351,010
	7,893	Cooper Cos., Inc. (The)		1,019,855
	45,845	Meridian Bioscience, Inc.		1,133,288
	38,879	Quidel Corp.(b)		960,311
	27,887	West Pharmaceutical Services, Inc.		1,348,336
				6,928,555
		Health Care Technology—4.3%
	45,988	MedAssets, Inc.(b)		1,059,103
	11,528	Medidata Solutions, Inc.(b)		1,271,654
	47,426	Omnicell, Inc.(b)		1,094,118
				3,424,875
		Life Sciences Tools & Services—11.9%
	40,530	Agilent Technologies, Inc.		2,057,303
	22,391	Charles River Laboratories International, Inc.(b)		1,101,861

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

15

PowerShares Dynamic Healthcare Sector Portfolio (PTH) (continued)

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks (continued)
		Life Sciences Tools & Services (continued)
	12,722	Covance, Inc.(b)	$	1,135,566
	4,682	Mettler-Toledo International, Inc.(b)		1,158,608
	22,208	PAREXEL International Corp.(b)		1,015,128
	23,834	Quintiles Transnational Holdings, Inc.(b)		1,000,789
	21,280	Thermo Fisher Scientific, Inc.		2,080,758
				9,550,013
		Managed Health Care—9.6%
	29,819	Aetna, Inc.		1,869,651
	18,041	Centene Corp.(b)		1,013,183
	24,021	Cigna Corp.		1,849,137
	18,345	Magellan Health Services, Inc.(b)		1,076,852
	22,203	WellPoint, Inc.		1,882,814
				7,691,637
		Pharmaceuticals—15.1%
	44,362	AbbVie, Inc.		2,149,339
	36,778	Eli Lilly & Co.		1,832,280
	25,093	Endo Health Solutions, Inc.(b)		1,097,317
	50,592	Impax Laboratories, Inc.(b)		1,024,994
	21,877	Johnson & Johnson		2,026,029
	23,621	Mallinckrodt PLC(b)		992,318
	15,465	Questcor Pharmaceuticals, Inc.		949,087
	46,739	Sagent Pharmaceuticals, Inc.(b)		1,013,769
	45,786	Santarus, Inc.(b)		1,068,187
				12,153,320
		Total Common Stocks (Cost $70,122,213)		80,267,811
		Money Market Fund—0.1%
	82,155	Premier Portfolio—Institutional Class(c) (Cost $82,155)		82,155
		Total Investments (Cost $70,204,368)—100.1%		80,349,966
		Other assets less liabilities—(0.1)%		(96,928	)
		Net Assets—100.0%	$	80,253,038

Notes to Schedule of Investments:

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

^(b)  Non-income producing security.

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

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

16

Portfolio Composition

PowerShares Dynamic Industrials Sector Portfolio (PRN)

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of October 31, 2013 (Unaudited)
Aerospace & Defense	26.2
Construction & Farm Machinery & Heavy Trucks	13.8
Airlines	11.7
Industrial Machinery	10.5
Construction & Engineering	6.4
Trucking	5.5
Human Resource & Employment Services	4.7
Commercial Printing	4.1
Research & Consulting Services	4.1
Electrical Components & Equipment	4.0
Diversified Support Services	2.7
Security & Alarm Services	2.4
Building Products	1.4
Office Services & Supplies	1.3
Heavy Electrical Equipment	1.2
Money Market Fund Plus Other Assets Less Liabilities	(0.0	)

Schedule of Investments^(a)

PowerShares Dynamic Industrials Sector Portfolio (PRN)

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks—100.0%
		Aerospace & Defense—26.2%
	42,770	AAR Corp.	$	1,252,306
	11,088	Alliant Techsystems, Inc.		1,207,151
	15,734	B/E Aerospace, Inc.(b)		1,276,971
	18,930	Boeing Co. (The)		2,470,365
	31,882	Engility Holdings, Inc.(b)		987,385
	14,070	Esterline Technologies Corp.(b)		1,127,851
	72,955	Exelis, Inc.		1,203,028
	23,635	General Dynamics Corp.		2,047,500
	24,725	Honeywell International, Inc.		2,144,399
	16,951	Huntington Ingalls Industries, Inc.		1,212,844
	21,785	L-3 Communications Holdings, Inc.		2,188,303
	21,322	Northrop Grumman Corp.		2,292,328
	26,088	Raytheon Co.		2,148,869
	27,801	Rockwell Collins, Inc.		1,941,344
				23,500,644
		Airlines—11.7%
	18,955	Alaska Air Group, Inc.		1,339,361
	99,719	Delta Air Lines, Inc.		2,630,587
	96,076	Republic Airways Holdings, Inc.(b)		1,131,775
	83,254	SkyWest, Inc.		1,252,140

Number of Shares			Value
		Common Stocks (continued)
		Airlines (continued)
	153,590	Southwest Airlines Co.	$	2,644,820
	66,406	US Airways Group, Inc.(b)		1,458,940
				10,457,623
		Building Products—1.4%
	46,023	AAON, Inc.		1,243,081
		Commercial Printing—4.1%
	20,060	Consolidated Graphics, Inc.(b)		1,285,645
	34,242	Quad/Graphics, Inc.		1,195,731
	64,342	R.R. Donnelley & Sons Co.		1,194,831
				3,676,207
		Construction & Engineering—6.4%
	36,840	AECOM Technology Corp.(b)		1,170,775
	71,072	Comfort Systems USA, Inc.		1,324,071
	33,759	Jacobs Engineering Group, Inc.(b)		2,053,223
	21,673	URS Corp.		1,175,110
				5,723,179
		Construction & Farm Machinery & Heavy Trucks—13.8%
	18,971	AGCO Corp.		1,107,527
	23,656	Alamo Group, Inc.		1,116,326

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

17

PowerShares Dynamic Industrials Sector Portfolio (PRN) (continued)

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks (continued)
		Construction & Farm Machinery & Heavy Trucks (continued)
	15,967	Cummins, Inc.	$	2,028,128
	91,959	Federal Signal Corp.(b)		1,258,919
	23,888	Oshkosh Corp.(b)		1,136,830
	36,704	PACCAR, Inc.		2,040,742
	25,414	Trinity Industries, Inc.		1,286,711
	102,992	Wabash National Corp.(b)		1,200,887
	13,760	WABCO Holdings, Inc.(b)		1,178,957
				12,355,027
		Diversified Support Services—2.7%
	20,866	G&K Services, Inc., Class A		1,302,038
	11,194	UniFirst Corp.		1,150,967
				2,453,005
		Electrical Components & Equipment—4.0%
	20,926	EnerSys		1,388,440
	20,236	Rockwell Automation, Inc.		2,234,257
				3,622,697
		Heavy Electrical Equipment—1.2%
	34,632	Babcock & Wilcox Co. (The)		1,115,497
		Human Resource & Employment Services—4.7%
	60,597	Korn/Ferry International(b)		1,442,209
	16,551	Manpowergroup, Inc.		1,292,633
	13,046	Towers Watson & Co., Class A		1,497,811
				4,232,653
		Industrial Machinery—10.5%
	18,670	CIRCOR International, Inc.		1,377,286
	23,130	Dover Corp.		2,123,103
	14,195	Hyster-Yale Materials Handling, Inc.		1,113,456
	18,077	IDEX Corp.		1,250,024
	33,270	Ingersoll-Rand PLC		2,246,723
	32,671	ITT Corp.		1,298,019
				9,408,611
		Office Services & Supplies—1.3%
	27,004	United Stationers, Inc.		1,200,058
		Research & Consulting Services—4.1%
	32,631	ICF International, Inc.(b)		1,129,685
	78,624	Navigant Consulting, Inc.(b)		1,364,127
	68,398	RPX Corp.(b)		1,221,588
				3,715,400
		Security & Alarm Services—2.4%
	49,397	ADT Corp. (The)		2,142,348

Number of Shares			Value
		Common Stocks (continued)
		Trucking—5.5%
	6,560	AMERCO	$	1,324,661
	43,130	Arkansas Best Corp.		1,180,468
	24,717	Old Dominion Freight Line, Inc.(b)		1,159,227
	59,754	Swift Transportation Co.(b)		1,302,040
				4,966,396
		Total Common Stocks (Cost $76,461,716)		89,812,426
		Money Market Fund—0.1%
	82,610	Premier Portfolio—Institutional Class(c) (Cost $82,610)		82,610
		Total Investments (Cost $76,544,326)—100.1%		89,895,036
		Other assets less liabilities—(0.1)%		(91,505	)
		Net Assets—100.0%	$	89,803,531

Notes to Schedule of Investments:

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

^(b)  Non-income producing security.

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

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

18

Portfolio Composition

PowerShares Dynamic Technology Sector Portfolio (PTF)

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of October 31, 2013 (Unaudited)
Data Processing & Outsourced Services	18.4
Semiconductors	12.5
Communications Equipment	8.7
Internet Software & Services	8.4
Computer Storage & Peripherals	8.2
Technology Distributors	8.2
Electronic Manufacturing Services	7.1
Electronic Components	6.4
Application Software	4.5
Semiconductor Equipment	4.1
IT Consulting & Other Services	3.9
Computer Hardware	2.5
Home Entertainment Software	2.3
Office Electronics	2.3
Electronic Equipment & Instruments	1.4
Systems Software	1.1
Money Market Fund Plus Other Assets Less Liabilities	0.0

Schedule of Investments^(a)

PowerShares Dynamic Technology Sector Portfolio (PTF)

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks—100.0%
		Application Software—4.5%
	16,244	Advent Software, Inc.	$	544,986
	7,444	Interactive Intelligence Group, Inc.(b)		457,434
	5,934	Tyler Technologies, Inc.(b)		573,877
				1,576,297
		Communications Equipment—8.7%
	34,118	Calix, Inc.(b)		346,980
	34,482	Cisco Systems, Inc.		775,845
	10,890	EchoStar Corp., Class A(b)		522,284
	62,012	Harmonic, Inc.(b)		453,308
	12,336	InterDigital, Inc.		478,020
	12,505	Ubiquiti Networks, Inc.		482,443
				3,058,880
		Computer Hardware—2.5%
	35,979	Hewlett-Packard Co.		876,808
		Computer Storage & Peripherals—8.2%
	14,973	Electronics for Imaging, Inc.(b)		513,724
	12,834	Lexmark International, Inc., Class A		456,249

Number of Shares			Value
		Common Stocks (continued)
		Computer Storage & Peripherals (continued)
	14,566	SanDisk Corp.	$	1,012,337
	12,964	Western Digital Corp.		902,683
				2,884,993
		Data Processing & Outsourced Services—18.4%
	16,027	Computer Sciences Corp.		789,490
	24,868	Convergys Corp.		490,894
	6,143	DST Systems, Inc.		520,742
	12,763	Euronet Worldwide, Inc.(b)		553,914
	7,795	FleetCor Technologies, Inc.(b)		899,153
	8,786	Jack Henry & Associates, Inc.		479,804
	1,326	MasterCard, Inc., Class A		950,875
	8,675	NeuStar, Inc., Class A(b)		398,356
	17,917	TeleTech Holdings, Inc.(b)		474,263
	4,608	Visa, Inc., Class A		906,255
				6,463,746
		Electronic Components—6.4%
	10,608	Amphenol Corp., Class A		851,717

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

19

PowerShares Dynamic Technology Sector Portfolio (PTF) (continued)

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks (continued)
		Electronic Components (continued)
	34,066	AVX Corp. (Japan)	$	451,375
	5,943	Littelfuse, Inc.		505,333
	35,790	Vishay Intertechnology, Inc.(b)		439,143
				2,247,568
		Electronic Equipment & Instruments—1.4%
	29,886	Checkpoint Systems, Inc.(b)		508,660
		Electronic Manufacturing Services—7.1%
	19,956	Benchmark Electronics, Inc.(b)		453,600
	48,822	Flextronics International Ltd. (Singapore)(b)		385,206
	19,212	Jabil Circuit, Inc.		400,762
	26,947	Sanmina Corp.(b)		392,348
	16,404	TE Connectivity Ltd. (Switzerland)		844,642
				2,476,558
		Home Entertainment Software—2.3%
	30,172	Electronic Arts, Inc.(b)		792,015
		Internet Software & Services—8.4%
	2,952	CoStar Group, Inc.(b)		522,475
	8,904	j2 Global, Inc.		489,542
	10,469	Stamps.com, Inc.(b)		475,711
	38,539	United Online, Inc.		469,785
	29,638	Yahoo!, Inc.(b)		975,979
				2,933,492
		IT Consulting & Other Services—3.9%
	11,894	Amdocs Ltd.		457,324
	29,326	Sapient Corp.(b)		463,644
	17,425	Unisys Corp.(b)		459,149
				1,380,117
		Office Electronics—2.3%
	80,539	Xerox Corp.		800,558
		Semiconductor Equipment—4.1%
	39,641	Kulicke & Soffa Industries, Inc. (Singapore)(b)		511,369
	17,223	Lam Research Corp.(b)		934,003
				1,445,372
		Semiconductors—12.5%
	11,940	First Solar, Inc.(b)		600,224
	18,360	International Rectifier Corp.(b)		478,095
	20,970	Linear Technology Corp.		862,706
	21,439	Magnachip Semiconductor Corp. (South Korea)(b)		400,695
	20,401	SunPower Corp. (France)(b)		615,906
	11,340	Synaptics, Inc.(b)		527,310
	21,041	Texas Instruments, Inc.		885,405
				4,370,341
		Systems Software—1.1%
	12,971	Gigamon, Inc.(b)		399,246
		Technology Distributors—8.2%
	5,247	Anixter International, Inc.(b)		448,566
	9,445	Arrow Electronics, Inc.(b)		453,549
	11,370	Avnet, Inc.		451,389
	19,838	Ingram Micro, Inc., Class A(b)		459,647
	22,942	Insight Enterprises, Inc.(b)		483,388
	9,228	SYNNEX Corp.(b)		565,676
				2,862,215
		Total Common Stocks (Cost $30,660,848)		35,076,866

Number of Shares			Value
		Money Market Fund—0.2%
	79,292	Premier Portfolio—Institutional Class(c) (Cost $79,292)	$	79,292
		Total Investments (Cost $30,740,140)—100.2%		35,156,158
		Other assets less liabilities—(0.2)%		(56,788	)
		Net Assets—100.0%	$	35,099,370

Notes to Schedule of Investments:

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

^(b)  Non-income producing security.

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

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

20

Portfolio Composition

PowerShares Dynamic Utilities Portfolio (PUI)

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of October 31, 2013 (Unaudited)
Electric Utilities	28.3
Multi-Utilities	20.0
Integrated Telecommunication Services	14.2
Wireless Telecommunication Services	12.7
Alternative Carriers	7.7
Cable & Satellite	5.1
Water Utilities	4.1
Gas Utilities	2.9
Independent Power Producers & Energy Traders	2.7
Communications Equipment	2.3
Money Market Fund Plus Other Assets Less Liabilities	0.0

Schedule of Investments^(a)

PowerShares Dynamic Utilities Portfolio (PUI)

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks—100.0%
		Alternative Carriers—7.7%
	55,827	8x8, Inc.(b)	$	639,777
	16,642	Cogent Communications Group, Inc.		584,634
	23,095	Level 3 Communications, Inc.(b)		705,552
	18,043	tw telecom, inc.(b)		568,715
	165,512	Vonage Holdings Corp.(b)		617,360
				3,116,038
		Cable & Satellite—5.1%
	22,512	Comcast Corp., Class A		1,071,121
	21,076	DISH Network Corp., Class A		1,015,863
				2,086,984
		Communications Equipment—2.3%
	40,658	Cisco Systems, Inc.		914,805
		Electric Utilities—28.3%
	22,142	American Electric Power Co., Inc.		1,037,131
	14,446	Duke Energy Corp.		1,036,212
	11,253	Edison International		551,735
	24,393	Empire District Electric Co. (The)		548,599
	31,085	Exelon Corp.		887,166
	13,758	FirstEnergy Corp.		521,015
	23,519	Great Plains Energy, Inc.		551,285
	10,787	IDACORP, Inc.		556,609
	9,910	MGE Energy, Inc.		558,032
	11,793	NextEra Energy, Inc.		999,457
	19,650	Otter Tail Corp.		586,159

Number of Shares			Value
		Common Stocks (continued)
		Electric Utilities (continued)
	9,515	Pinnacle West Capital Corp.	$	533,125
	23,569	PNM Resources, Inc.		563,770
	17,894	Portland General Electric Co.		513,558
	30,871	PPL Corp.		945,579
	13,653	UIL Holdings Corp.		525,914
	11,273	UNS Energy Corp.		557,788
				11,473,134
		Gas Utilities—2.9%
	12,798	Atmos Energy Corp.		566,568
	11,039	Southwest Gas Corp.		598,976
				1,165,544
		Independent Power Producers & Energy Traders—2.7%
	40,629	AES Corp. (The)		572,462
	26,532	Dynegy, Inc., Class A(b)		515,517
				1,087,979
		Integrated Telecommunication Services—14.2%
	28,015	AT&T, Inc.		1,014,143
	10,931	Atlantic Tele-Network, Inc.		605,796
	28,618	CenturyLink, Inc.		969,005
	172,416	Cincinnati Bell, Inc.(b)		493,110
	30,959	Consolidated Communications Holdings, Inc.		576,766
	119,059	Frontier Communications Corp.		525,050
	20,004	Verizon Communications, Inc.		1,010,402

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

21

PowerShares Dynamic Utilities Portfolio (PUI) (continued)

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks (continued)
		Integrated Telecommunication Services (continued)
	63,990	Windstream Holdings, Inc.	$	547,115
				5,741,387
		Multi-Utilities—20.0%
	15,248	Ameren Corp.		551,673
	19,624	Avista Corp.		545,351
	10,736	Black Hills Corp.		544,530
	22,521	CenterPoint Energy, Inc.		554,017
	19,432	CMS Energy Corp.		533,603
	16,240	Dominion Resources, Inc.		1,035,300
	7,709	DTE Energy Co.		533,000
	9,235	Integrys Energy Group, Inc.		541,910
	17,649	NiSource, Inc.		556,296
	12,855	NorthWestern Corp.		589,273
	11,214	Sempra Energy		1,022,044
	15,814	Vectren Corp.		552,225
	12,583	Wisconsin Energy Corp.		529,870
				8,089,092
		Water Utilities—4.1%
	19,635	American States Water Co.		559,205
	12,676	American Water Works Co., Inc.		543,420
	25,885	California Water Service Group		564,293
				1,666,918
		Wireless Telecommunication Services—12.7%
	13,651	Crown Castle International Corp.(b)		1,037,749
	34,018	Leap Wireless International, Inc.(b)		547,690
	86,208	NII Holdings, Inc.(b)		296,556
	6,874	SBA Communications Corp., Class A(b)		601,269
	141,092	Sprint Corp. (Japan)(b)		949,549
	40,575	T-Mobile US, Inc. (Germany)(b)		1,125,145
	12,071	United States Cellular Corp.		584,236
				5,142,194
		Total Common Stocks (Cost $34,559,835)		40,484,075
		Money Market Fund—0.1%
	41,514	Premier Portfolio—Institutional Class(c) (Cost $41,514)		41,514
		Total Investments (Cost $34,601,349)—100.1%		40,525,589
		Other assets less liabilities—(0.1)%		(38,635	)
		Net Assets—100.0%	$	40,486,954

Notes to Schedule of Investments:

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

^(b)  Non-income producing security.

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

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

22

Portfolio Composition

PowerShares NASDAQ Internet Portfolio (PNQI)

Sub-Industry Breakdown (% of the Fund’s Net Assets) as of October 31, 2013 (Unaudited)
Internet Software & Services	66.4
Internet Retail	31.8
Application Software	1.3
Alternative Carriers	0.4
Wireless Telecommunication Services	0.1
Money Market Funds Plus Other Assets Less Liabilities	0.0

Schedule of Investments^(a)

PowerShares NASDAQ Internet Portfolio (PNQI)

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests—100.0%
		Alternative Carriers—0.4%
	27,265	Cogent Communications Group, Inc.	$	957,820
		Application Software—1.3%
	17,278	NQ Mobile, Inc. ADR (China)(b)(c)		248,803
	34,049	Open Text Corp. (Canada)		2,497,154
				2,745,957
		Internet Retail—31.8%
	54,651	Amazon.com, Inc.(c)		19,894,604
	7,168	Blue Nile, Inc.(c)		294,390
	84,373	Ctrip.com International Ltd. ADR (China)(b)(c)		4,577,235
	71,143	Expedia, Inc.		4,188,900
	383,087	Groupon, Inc.(c)		3,497,584
	49,150	HomeAway, Inc.(c)		1,457,297
	27,049	Netflix, Inc.(c)		8,722,762
	16,560	Nutrisystem, Inc.		311,328
	62,247	Orbitz Worldwide, Inc.(c)		575,162
	13,687	Overstock.com, Inc.(c)		320,686
	11,645	PetMed Express, Inc.		172,812
	16,363	priceline.com, Inc.(c)		17,243,820
	21,754	Shutterfly, Inc.(c)		1,068,992
	75,172	TripAdvisor, Inc.(c)		6,217,476
				68,543,048
		Internet Software & Services—66.4%
	23,196	21Vianet Group, Inc. ADR (China)(b)(c)		417,528
	102,889	Akamai Technologies, Inc.(c)		4,603,254
	33,663	Angie’s List, Inc.(b)(c)		474,312
	44,261	AOL, Inc.(c)		1,604,019
	56,664	Baidu, Inc. ADR (China)(c)		9,117,238
	58,433	Bankrate, Inc. (United Kingdom)(c)		984,012
	43,020	Bazaarvoice, Inc.(b)(c)		403,528
	23,727	Blucora, Inc.(c)		560,669
	16,332	Brightcove, Inc.(c)		249,390

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Internet Software & Services (continued)
	20,560	comScore, Inc.(c)	$	549,363
	17,685	Constant Contact, Inc.(c)		458,218
	29,638	Cornerstone OnDemand, Inc.(c)		1,403,952
	16,541	CoStar Group, Inc.(c)		2,927,592
	25,221	Dealertrack Technologies, Inc.(c)		940,743
	17,659	Demandware, Inc.(c)		873,237
	34,038	Dice Holdings, Inc.(c)		251,200
	19,745	Digital River, Inc.(c)		352,251
	14,857	E2open, Inc.(c)		334,282
	59,379	EarthLink, Inc.		300,458
	307,214	eBay, Inc.(c)		16,193,250
	28,542	Equinix, Inc.(c)		4,608,962
	371,999	Facebook, Inc., Class A(c)		18,696,670
	20,787	Global Eagle Entertainment, Inc.(c)		211,612
	18,132	Google, Inc., Class A(c)		18,686,477
	44,502	IAC/InterActiveCorp.		2,375,962
	30,972	Internap Network Services Corp.(c)		225,166
	26,682	j2 Global, Inc.		1,466,976
	18,300	Liquidity Services, Inc.(b)(c)		477,813
	31,148	LivePerson, Inc.(c)		290,922
	13,994	LogMeIn, Inc.(c)		452,006
	25,509	MercadoLibre, Inc. (Argentina)		3,434,404
	65,164	Monster Worldwide, Inc.(c)		281,508
	23,241	Move, Inc.(c)		394,400
	42,645	NetEase, Inc. ADR (China)		2,878,964
	37,419	NIC, Inc.		921,256
	13,229	OpenTable, Inc.(c)		919,151
	101,714	Pandora Media, Inc.(b)(c)		2,556,073
	19,068	Perficient, Inc.(c)		344,940
	49,873	Qihoo 360 Technology Co. Ltd. ADR (China)(c)		4,121,505
	24,925	QuinStreet, Inc.(c)		221,583
	80,242	Rackspace Hosting, Inc.(c)		4,110,798
	29,032	Responsys, Inc.(c)		474,383

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

23

PowerShares NASDAQ Internet Portfolio (PNQI) (continued)

October 31, 2013

(Unaudited)

Number of Shares			Value
		Common Stocks and Other Equity Interests (continued)
		Internet Software & Services (continued)
	13,199	Sciquest, Inc.(c)	$	288,266
	38,562	SINA Corp. (China)(c)		3,222,241
	22,072	Sohu.com, Inc. (China)(c)		1,477,941
	9,023	Stamps.com, Inc.(c)		410,005
	29,951	Support.com, Inc.(c)		133,581
	8,853	Travelzoo, Inc.(c)		190,605
	18,758	Trulia, Inc.(c)		749,757
	7,621	United Online, Inc.		92,900
	42,839	ValueClick, Inc.(c)		822,937
	52,345	Velti PLC (Ireland)(b)(c)		14,117
	82,923	Verisign, Inc.(c)		4,501,060
	18,960	VistaPrint NV (Netherlands)(b)(c)		1,024,788
	12,172	Vocus, Inc.(c)		105,288
	29,086	Web.com Group, Inc.(c)		783,868
	29,059	WebMD Health Corp.(b)(c)		1,023,458
	21,259	Xoom Corp.(c)		632,455
	283,144	Yahoo!, Inc.(c)		9,323,932
	133,410	Yandex NV, Class A (Russia)(c)		4,917,493
	10,900	YY, Inc. ADR (China)(b)(c)		535,953
	22,275	Zillow, Inc., Class A(b)(c)		1,773,758
	35,745	Zix Corp.(c)		145,840
				143,320,270
		Wireless Telecommunication Services—0.1%
	20,514	Boingo Wireless, Inc.(c)		139,085
		Total Common Stocks and Other Equity Interests (Cost $180,336,063)		215,706,180
		Money Market Fund—0.0%
	1,315	Premier Portfolio—Institutional Class(d) (Cost $1,315)		1,315
		Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $180,337,378)—100.0%		215,707,495
		Investments Purchased with Cash Collateral from Securities on Loan
		Money Market Fund—2.3%
	4,954,750	Invesco Liquid Assets Portfolio—Institutional Class (Cost $4,954,750)(d)(e)		4,954,750
		Total Investments (Cost $185,292,128)—102.3%		220,662,245
		Other assets less liabilities—(2.3)%		(4,948,957	)
		Net Assets—100.0%	$	215,713,288

Investment Abbreviations:

ADR—American Depositary Receipt

Notes to Schedule of Investments:

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

^(b)  All or a portion of this security was out on loan at October 31, 2013.

^(c)  Non-income producing security.

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

^(e)  The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower’s return of the securities loaned. See Note 2G.

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

China 12.3%

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

24

(This Page Intentionally Left Blank)

Statements of Assets and Liabilities

October 31, 2013

(Unaudited)

	PowerShares Dynamic Basic Materials Sector Portfolio (PYZ)			PowerShares Dynamic Consumer Discretionary Sector Portfolio (PEZ)			PowerShares Dynamic Consumer Staples Sector Portfolio (PSL)			PowerShares Dynamic Energy Sector Portfolio (PXI)
Assets:
Unaffiliated investments, at value(a)	$	77,268,979		$	24,374,958		$	38,806,050		$	161,315,151
Affiliated investments, at value		119,300			55,183			66,218			86,296
Total investments, at value		77,388,279			24,430,141			38,872,268			161,401,447
Receivables:
Dividends		62,460			9,699			40,672			75,967
Investments sold		20,175			—			492,779			5,478,124
Security lending		—			—			—			—
Other assets		813			813			813			813
Total Assets		77,471,727			24,440,653			39,406,532			166,956,351
Liabilities:
Payables:
Shares repurchased		—			—			—			5,379,334
Investments purchased		—			—			504,146			—
Collateral upon return of securities loaned		—			—			—			—
Expenses recaptured		—			—			—			4,696
Accrued advisory fees		30,410			5,088			11,562			68,520
Accrued trustees fees		12,530			10,685			11,543			14,070
Accrued expenses		81,202			61,852			67,330			109,711
Total Liabilities		124,142			77,625			594,581			5,576,331
Net Assets	$	77,347,585		$	24,363,028		$	38,811,951		$	161,380,020
Net Assets Consist of:
Shares of beneficial interest	$	82,759,039		$	27,622,170		$	39,547,536		$	159,307,126
Undistributed net investment income (loss)		89,326			(7,438	)		45,202			(24,253	)
Undistributed net realized gain (loss)		(17,778,787	)		(5,862,306	)		(8,362,985	)		(18,622,789	)
Net unrealized appreciation		12,278,007			2,610,602			7,582,198			20,719,936
Net Assets	$	77,347,585		$	24,363,028		$	38,811,951		$	161,380,020
Shares outstanding (unlimited amount authorized, $0.01 par value)		1,600,000			600,000			900,000			3,000,000
Net asset value	$	48.34		$	40.61		$	43.12		$	53.79
Market price	$	48.40		$	40.68		$	43.14		$	53.85
Unaffiliated investments, at cost	$	64,990,972		$	21,764,356		$	31,223,852		$	140,595,215
Affiliated investments, at cost	$	119,300		$	55,183		$	66,218		$	86,296
Total investments, at cost	$	65,110,272		$	21,819,539		$	31,290,070		$	140,681,511
(a) Includes securities on loan with an aggregate value of	$	—		$	—		$	—		$	—

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

26

PowerShares Dynamic Financial Sector Portfolio (PFI)			PowerShares Dynamic Healthcare Sector Portfolio (PTH)			PowerShares Dynamic Industrials Sector Portfolio (PRN)			PowerShares Dynamic Technology Sector Portfolio (PTF)			PowerShares Dynamic Utilities Portfolio (PUI)			PowerShares NASDAQ Internet Portfolio (PNQI)
$	24,291,166		$	80,267,811		$	89,812,426		$	35,076,866		$	40,484,075		$	215,706,180
	79,064			82,155			82,610			79,292			41,514			4,956,065
	24,370,230			80,349,966			89,895,036			35,156,158			40,525,589			220,662,245
	8,567			19,965			28,614			10,388			51,575			2
	—			—			—			391,949			—			374,516
	—			—			—			—			—			4,997
	813			813			813			4,670			3,803			—
	24,379,610			80,370,744			89,924,463			35,563,165			40,580,967			221,041,760
	—			—			—			—			—			—
	—			—			—			372,832			—			276,965
	—			—			—			—			—			4,954,750
	—			—			—			—			—			—
	4,726			31,007			34,454			10,340			12,229			96,757
	10,728			13,604			12,142			11,512			11,875			—
	62,734			73,095			74,336			69,111			69,909			—
	78,188			117,706			120,932			463,795			94,013			5,328,472
$	24,301,422		$	80,253,038		$	89,803,531		$	35,099,370		$	40,486,954		$	215,713,288
$	30,924,018		$	115,931,029		$	115,730,385		$	57,394,106		$	50,902,914		$	182,519,972
	13,288			(12,960	)		(11,601	)		(485	)		76,341			(289,716	)
	(9,487,812	)		(45,810,629	)		(39,265,963	)		(26,710,269	)		(16,416,541	)		(1,887,085	)
	2,851,928			10,145,598			13,350,710			4,416,018			5,924,240			35,370,117
$	24,301,422		$	80,253,038		$	89,803,531		$	35,099,370		$	40,486,954		$	215,713,288
	900,000			1,800,000			2,000,000			1,050,000			2,000,000			3,450,000
$	27.00		$	44.59		$	44.90		$	33.43		$	20.24		$	62.53
$	27.05		$	44.68		$	44.98		$	33.47		$	20.25		$	62.52
$	21,439,238		$	70,122,213		$	76,461,716		$	30,660,848		$	34,559,835		$	180,336,063
$	79,064		$	82,155		$	82,610		$	79,292		$	41,514		$	4,956,065
$	21,518,302		$	70,204,368		$	76,544,326		$	30,740,140		$	34,601,349		$	185,292,128
$	—		$	—		$	—		$	—		$	—		$	4,846,009

27

Statements of Operations

For the six months ended October 31, 2013

(Unaudited)

	PowerShares Dynamic Basic Materials Sector Portfolio (PYZ)			PowerShares Dynamic Consumer Discretionary Sector Portfolio (PEZ)			PowerShares Dynamic Consumer Staples Sector Portfolio (PSL)			PowerShares Dynamic Energy Sector Portfolio (PXI)
Investment Income:
Unaffiliated dividend income	$	657,393		$	117,522		$	368,084		$	1,125,746
Affiliated dividend income		5			3			3			10
Securities lending income		—			—			—			—
Foreign withholding tax		—			—			—			(1,294	)
Total Income		657,398			117,525			368,087			1,124,462
Expenses:
Advisory fees		189,046			57,937			93,909			364,728
Sub-licensing		18,905			5,794			9,391			36,472
Accounting & administration fees		18,046			18,046			18,046			18,046
Recapture		—			—			—			13,027
Professional fees		14,394			13,925			14,077			15,569
Trustees fees		4,995			4,309			4,476			5,856
Custodian & transfer agent fees		3,861			2,568			3,131			5,279
Other expenses		9,805			6,283			7,003			15,169
Total Expenses		259,052			108,862			150,033			474,146
Waivers		(13,852	)		(33,562	)		(28,503	)		(44	)
Net Expenses		245,200			75,300			121,530			474,102
Net Investment Income (Loss)		412,198			42,225			246,557			650,360
Realized and Unrealized Gain (Loss):
Net realized gain (loss) from:
Investment securities		(1,943,051	)		327,255			329,454			(85,590	)
In-kind redemptions		7,445,387			4,110,127			3,479,222			10,290,461
Net realized gain		5,502,336			4,437,382			3,808,676			10,204,871
Net change in unrealized appreciation (depreciation) on investment securities		2,654,426			(438,521	)		(592,177	)		5,781,798
Net realized and unrealized gain		8,156,762			3,998,861			3,216,499			15,986,669
Net increase in net assets resulting from operations	$	8,568,960		$	4,041,086		$	3,463,056		$	16,637,029

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

28

PowerShares Dynamic Financial Sector Portfolio (PFI)			PowerShares Dynamic Healthcare Sector Portfolio (PTH)			PowerShares Dynamic Industrials Sector Portfolio (PRN)			PowerShares Dynamic Technology Sector Portfolio (PTF)			PowerShares Dynamic Utilities Portfolio (PUI)			PowerShares NASDAQ Internet Portfolio (PNQI)
$	212,494		$	309,252		$	328,189		$	133,203		$	689,992		$	59,975
	3			3			4			4			4			3
	—			—			—			—			—			27,064
	(107	)		—			(674	)		—			—			(1,639	)
	212,390			309,255			327,519			133,207			689,996			85,403
	56,441			171,459			144,549			82,286			98,981			329,942
	5,643			17,147			14,455			8,229			5,939			—
	18,046			18,046			18,046			18,046			18,046			—
	—			—			—			—			—			—
	14,061			14,033			13,965			13,945			14,186			—
	4,254			4,876			4,547			4,378			4,507			—
	2,564			2,642			4,355			3,283			3,595			—
	6,285			8,150			6,929			6,278			7,455			—
	107,294			236,353			206,846			136,445			152,709			329,942
	(33,788	)		(13,730	)		(19,490	)		(30,027	)		(28,622	)		(15	)
	73,506			222,623			187,356			106,418			124,087			329,927
	138,884			86,632			140,163			26,789			565,909			(244,524	)
	148,432			(600,257	)		(235,300	)		(133,108	)		(640,393	)		(891,581	)
	2,432,424			7,658,252			4,489,158			4,670,465			2,323,316			4,598,663
	2,580,856			7,057,995			4,253,858			4,537,357			1,682,923			3,707,082
	92,115			2,208,702			7,998,765			(60,928	)		(838,283	)		27,143,754
	2,672,971			9,266,697			12,252,623			4,476,429			844,640			30,850,836
$	2,811,855		$	9,353,329		$	12,392,786		$	4,503,218		$	1,410,549		$	30,606,312

29

Statements of Changes in Net Assets

For the six months ended October 31, 2013 and the year ended April 30, 2013

(Unaudited)

	PowerShares Dynamic Basic Materials Sector Portfolio (PYZ)						PowerShares Dynamic Consumer Discretionary Sector Portfolio (PEZ)
	October 31, 2013			April 30, 2013			October 31, 2013			April 30, 2013
Operations:
Net investment income (loss)	$	412,198		$	1,045,060		$	42,225		$	356,766
Net realized gain		5,502,336			3,018,440			4,437,382			4,261,722
Net change in unrealized appreciation (depreciation)		2,654,426			4,647,985			(438,521	)		174,934
Net increase in net assets resulting from operations		8,568,960			8,711,485			4,041,086			4,793,422
Distributions to Shareholders from:
Net investment income		(448,080	)		(1,050,895	)		(69,972	)		(332,955	)
Return of capital		—			—			—			—
Total distributions to shareholders		(448,080	)		(1,050,895	)		(69,972	)		(332,955	)
Shareholder Transactions:
Proceeds from shares sold		33,305,020			59,425,865			20,141,249			47,664,294
Value of shares repurchased		(44,331,450	)		(53,756,851	)		(23,682,425	)		(47,628,525	)
Net increase (decrease) in net assets resulting from shares transactions		(11,026,430	)		5,669,014			(3,541,176	)		35,769
Increase (Decrease) in Net Assets		(2,905,550	)		13,329,604			429,938			4,496,236
Net Assets:
Beginning of period		80,253,135			66,923,531			23,933,090			19,436,854
End of period	$	77,347,585		$	80,253,135		$	24,363,028		$	23,933,090
Undistributed net investment income (loss) at end of period	$	89,326		$	125,208		$	(7,438	)	$	20,309
Changes in Shares Outstanding:
Shares sold		750,000			1,500,000			550,000			1,600,000
Shares repurchased		(1,000,000	)		(1,400,000	)		(650,000	)		(1,550,000	)
Shares outstanding, beginning of period		1,850,000			1,750,000			700,000			650,000
Shares outstanding, end of period		1,600,000			1,850,000			600,000			700,000

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

30

PowerShares Dynamic Consumer Staples Sector Portfolio (PSL)						PowerShares Dynamic Energy Sector Portfolio (PXI)						PowerShares Dynamic Financial Sector Portfolio (PFI)						PowerShares Dynamic Healthcare Sector Portfolio (PTH)
October 31, 2013			April 30, 2013			October 31, 2013			April 30, 2013			October 31, 2013			April 30, 2013			October 31, 2013			April 30, 2013
$	246,557		$	719,200		$	650,360		$	1,346,417		$	138,884		$	310,737		$	86,632		$	582,499
	3,808,676			4,386,527			10,204,871			6,107,583			2,580,856			2,261,425			7,057,995			5,178,641
	(592,177	)		2,798,508			5,781,798			14,877,574			92,115			1,179,820			2,208,702			4,322,451
	3,463,056			7,904,235			16,637,029			22,331,574			2,811,855			3,751,982			9,353,329			10,083,591
	(289,467	)		(761,607	)		(692,242	)		(1,757,378	)		(186,633	)		(308,168	)		(183,900	)		(519,661	)
	—			—			—			—			—			—			—			—
	(289,467	)		(761,607	)		(692,242	)		(1,757,378	)		(186,633	)		(308,168	)		(183,900	)		(519,661	)
	12,037,658			16,887,134			82,040,726			95,321,127			16,213,943			22,746,892			52,045,878			68,466,346
	(14,107,212	)		(25,453,074	)		(74,521,340	)		(119,541,343	)		(14,867,721	)		(23,931,832	)		(41,032,994	)		(55,093,388	)
	(2,069,554	)		(8,565,940	)		7,519,386			(24,220,216	)		1,346,222			(1,184,940	)		11,012,884			13,372,958
	1,104,035			(1,423,312	)		23,464,173			(3,646,020	)		3,971,444			2,258,874			20,182,313			22,936,888
	37,707,916			39,131,228			137,915,847			141,561,867			20,329,978			18,071,104			60,070,725			37,133,837
$	38,811,951		$	37,707,916		$	161,380,020		$	137,915,847		$	24,301,422		$	20,329,978		$	80,253,038		$	60,070,725
$	45,202		$	88,112		$	(24,253	)	$	17,629		$	13,288		$	61,037		$	(12,960	)	$	84,308
	300,000			500,000			1,650,000			2,200,000			650,000			1,100,000			1,250,000			2,050,000
	(350,000	)		(750,000	)		(1,500,000	)		(2,850,000	)		(600,000	)		(1,150,000	)		(1,000,000	)		(1,650,000	)
	950,000			1,200,000			2,850,000			3,500,000			850,000			900,000			1,550,000			1,150,000
	900,000			950,000			3,000,000			2,850,000			900,000			850,000			1,800,000			1,550,000

31

Statements of Changes in Net Assets (continued)

For the six months ended October 31, 2013 and the year ended April 30, 2013

(Unaudited)

	PowerShares Dynamic Industrials Sector Portfolio (PRN)						PowerShares Dynamic Technology Sector Portfolio (PTF)
	October 31, 2013			April 30, 2013			October 31, 2013			April 30, 2013
Operations:
Net investment income (loss)	$	140,163		$	494,811		$	26,789		$	187,651
Net realized gain		4,253,858			2,227,742			4,537,357			1,922,360
Net change in unrealized appreciation (depreciation)		7,998,765			4,044,778			(60,928	)		166,645
Net increase in net assets resulting from operations		12,392,786			6,767,331			4,503,218			2,276,656
Distributions to Shareholders from:
Net investment income		(143,474	)		(607,832	)		—			(220,275	)
Return of capital		—			(39,658	)		—			—
Total distributions to shareholders		(143,474	)		(647,490	)		—			(220,275	)
Shareholder Transactions:
Proceeds from shares sold		62,427,342			31,963,235			21,485,581			21,294,978
Value of shares repurchased		(23,446,558	)		(29,526,956	)		(22,942,353	)		(22,685,236	)
Net increase (decrease) in net assets resulting from shares transactions		38,980,784			2,436,279			(1,456,772	)		(1,390,258	)
Increase (Decrease) in Net Assets		51,230,096			8,556,120			3,046,446			666,123
Net Assets:
Beginning of period		38,573,435			30,017,315			32,052,924			31,386,801
End of period	$	89,803,531		$	38,573,435		$	35,099,370		$	32,052,924
Undistributed net investment income (loss) at end of period	$	(11,601	)	$	(8,290	)	$	(485	)	$	(27,274	)
Changes in Shares Outstanding:
Shares sold		1,550,000			1,000,000			700,000			800,000
Shares repurchased		(600,000	)		(950,000	)		(750,000	)		(850,000	)
Shares outstanding, beginning of period		1,050,000			1,000,000			1,100,000			1,150,000
Shares outstanding, end of period		2,000,000			1,050,000			1,050,000			1,100,000

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

32

PowerShares Dynamic Utilities Portfolio (PUI)						PowerShares NASDAQ Internet Portfolio (PNQI)
October 31, 2013			April 30, 2013			October 31, 2013			April 30, 2013
$	565,909		$	1,033,426		$	(244,524	)	$	(8,440	)
	1,682,923			866,472			3,707,082			5,214,400
	(838,283	)		6,101,677			27,143,754			243,934
	1,410,549			8,001,575			30,606,312			5,449,894
	(604,340	)		(1,054,339	)		—			(27,038	)
	—			—			—			—
	(604,340	)		(1,054,339	)		—			(27,038	)
	8,568,492			15,274,609			132,171,569			26,166,289
	(11,491,689	)		(23,011,381	)		(11,589,734	)		(30,742,175	)
	(2,923,197	)		(7,736,772	)		120,581,835			(4,575,886	)
	(2,116,988	)		(789,536	)		151,188,147			846,970
	42,603,942			43,393,478			64,525,141			63,678,171
$	40,486,954		$	42,603,942		$	215,713,288		$	64,525,141
$	76,341		$	114,772		$	(289,716	)	$	(45,192	)
	450,000			900,000			2,250,000			600,000
	(600,000	)		(1,350,000	)		(200,000	)		(750,000	)
	2,150,000			2,600,000			1,400,000			1,550,000
	2,000,000			2,150,000			3,450,000			1,400,000

33

Financial Highlights

PowerShares Dynamic Basic Materials Sector Portfolio (PYZ)

	Six-Months Ended October 31, 2013 (Unaudited)			Year Ended April 30,
				2013			2012			2011			2010			2009
Per Share Operating Performance:
Net asset value at beginning of period	$	43.38		$	38.24		$	40.66		$	31.30		$	20.14		$	36.29
Net investment income(a)		0.25			0.63			0.47			0.86	(b)		0.28			0.42
Net realized and unrealized gain (loss) on investments		4.98			5.16			(2.46	)		9.34			11.20			(16.15	)
Total from investment operations		5.23			5.79			(1.99	)		10.20			11.48			(15.73	)
Distributions to shareholders from:
Net investment income		(0.27	)		(0.65	)		(0.43	)		(0.84	)		(0.32	)		(0.42	)
Net asset value at end of period	$	48.34		$	43.38		$	38.24		$	40.66		$	31.30		$	20.14
Market price at end of period(c)	$	48.40		$	43.29		$	38.20		$	40.67		$	31.34		$	20.15
Net Asset Value Total Return(d)		12.12	%		15.37	%		(4.76	)%		33.12	%		57.46	%		(43.63	)%
Market Price Total Return(d)		12.49	%		15.26	%		(4.88	)%		32.98	%		57.59	%		(43.59	)%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	77,348		$	80,253		$	66,924		$	97,591		$	48,517		$	18,129
Ratio to average net assets of:
Expenses, after Waivers		0.65	%(e)		0.65	%		0.65	%		0.65	%		0.65	%		0.65	%
Expenses, prior to Waivers		0.69	%(e)		0.72	%		0.76	%		0.79	%		0.91	%		0.97	%
Net investment income, after Waivers		1.09	%(e)		1.59	%		1.33	%		2.56	%(b)		1.05	%		1.57	%
Portfolio turnover rate(f)		57	%		63	%		78	%		28	%		46	%		47	%

PowerShares Dynamic Consumer Discretionary Sector Portfolio (PEZ)

	Six-Months Ended October 31, 2013 (Unaudited)			Year Ended April 30,
				2013			2012			2011			2010			2009
Per Share Operating Performance:
Net asset value at beginning of period	$	34.19		$	29.90		$	27.54		$	23.72		$	17.07		$	22.45
Net investment income(a)		0.07			0.39			0.18			0.20			0.06			0.13
Net realized and unrealized gain (loss) on investments		6.47			4.24			2.37			3.79			6.65			(5.35	)
Total from investment operations		6.54			4.63			2.55			3.99			6.71			(5.22	)
Distributions to shareholders from:
Net investment income		(0.12	)		(0.34	)		(0.19	)		(0.17	)		(0.06	)		(0.15	)
Return of capital		—			—			—			—			—			(0.01	)
Total distributions		(0.12	)		(0.34	)		(0.19	)		(0.17	)		(0.06	)		(0.16	)
Net asset value at end of period	$	40.61		$	34.19		$	29.90		$	27.54		$	23.72		$	17.07
Market price at end of period(c)	$	40.68		$	34.16		$	29.89		$	27.53		$	23.74		$	17.07
Net Asset Value Total Return(d)		19.16	%		15.67	%		9.41	%		16.91	%		39.37	%		(23.19	)%
Market Price Total Return(d)		19.47	%		15.60	%		9.41	%		16.77	%		39.49	%		(23.22	)%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	24,363		$	23,933		$	19,437		$	20,657		$	21,345		$	13,658
Ratio to average net assets of:
Expenses, after Waivers		0.65	%(e)		0.65	%		0.65	%		0.65	%		0.65	%		0.64	%
Expenses, prior to Waivers		0.94	%(e)		0.93	%		1.19	%		1.24	%		1.32	%		1.68	%
Net investment income, after Waivers		0.36	%(e)		1.29	%		0.69	%		0.86	%		0.31	%		0.81	%
Portfolio turnover rate(f)		104	%		130	%		88	%		68	%		86	%		157	%

^(a)  Based on average shares outstanding.

^(b)  Net investment income per share and the ratio of net investment income to average net assets include a special cash dividend received of $1.65 per share owned of Weyerhaeuser Co. on July 20, 2010. Net investment income per share and the ratio of net investment income to average net assets excluding the special dividend are $0.26 and 0.78%, respectively.

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

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

^(e)  Annualized.

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

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

34

Financial Highlights (continued)

PowerShares Dynamic Consumer Staples Sector Portfolio (PSL)

	Six-Months Ended October 31, 2013 (Unaudited)			Year Ended April 30,
				2013			2012			2011			2010			2009
Per Share Operating Performance:
Net asset value at beginning of period	$	39.69		$	32.61		$	31.36		$	26.74		$	20.81		$	26.75
Net investment income(a)		0.27			0.66			0.48			0.52			0.36			0.45
Net realized and unrealized gain (loss) on investments		3.48			7.13			1.22			4.61			5.99			(6.04	)
Total from investment operations		3.75			7.79			1.70			5.13			6.35			(5.59	)
Distributions to shareholders from:
Net investment income		(0.32	)		(0.71	)		(0.45	)		(0.51	)		(0.42	)		(0.35	)
Net asset value at end of period	$	43.12		$	39.69		$	32.61		$	31.36		$	26.74		$	20.81
Market price at end of period(b)	$	43.14		$	39.67		$	32.60		$	31.37		$	26.74		$	20.79
Net Asset Value Total Return(c)		9.51	%		24.29	%		5.53	%		19.46	%		30.87	%		(21.02	)%
Market Price Total Return(c)		9.62	%		24.27	%		5.47	%		19.50	%		30.99	%		(21.09	)%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	38,812		$	37,708		$	39,131		$	40,772		$	38,772		$	37,453
Ratio to average net assets of:
Expenses, after Waivers		0.65	%(d)		0.65	%		0.65	%		0.65	%		0.65	%		0.65	%
Expenses, prior to Waivers		0.80	%(d)		0.82	%		0.89	%		0.94	%		0.87	%		0.94	%
Net investment income, after Waivers		1.31	%(d)		1.94	%		1.54	%		1.91	%		1.50	%		2.07	%
Portfolio turnover rate(e)		43	%		57	%		35	%		54	%		67	%		48	%

PowerShares Dynamic Energy Sector Portfolio (PXI)

	Six-Months Ended October 31, 2013 (Unaudited)			Year Ended April 30,
				2013			2012			2011			2010			2009
Per Share Operating Performance:
Net asset value at beginning of period	$	48.39		$	40.45		$	44.63		$	29.75		$	19.91		$	38.80
Net investment income(a)		0.22			0.47			0.21			0.32			0.20			0.18
Net realized and unrealized gain (loss) on investments		5.43			8.13			(4.15	)		14.77			9.87			(18.93	)
Total from investment operations		5.65			8.60			(3.94	)		15.09			10.07			(18.75	)
Distributions to shareholders from:
Net investment income		(0.25	)		(0.66	)		(0.24	)		(0.21	)		(0.23	)		(0.14	)
Net asset value at end of period	$	53.79		$	48.39		$	40.45		$	44.63		$	29.75		$	19.91
Market price at end of period(b)	$	53.85		$	48.36		$	40.47		$	44.65		$	29.75		$	19.92
Net Asset Value Total Return(c)		11.73	%		21.48	%		(8.79	)%		51.01	%		50.81	%		(48.52	)%
Market Price Total Return(c)		11.92	%		21.35	%		(8.78	)%		51.07	%		50.73	%		(48.44	)%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	161,380		$	137,916		$	141,562		$	191,903		$	38,671		$	25,878
Ratio to average net assets of:
Expenses, after Waivers		0.65	%(d)		0.66	%		0.65	%		0.65	%		0.65	%		0.65	%
Expenses, prior to Waivers		0.65	%(d)		0.69	%		0.66	%		0.74	%		0.93	%		0.98	%
Net investment income, after Waivers		0.89	%(d)		1.10	%		0.54	%		0.90	%		0.79	%		0.65	%
Portfolio turnover rate(e)		64	%		80	%		107	%		35	%		63	%		67	%

^(a)  Based on average shares outstanding.

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

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

^(d)  Annualized.

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

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

35

Financial Highlights (continued)

PowerShares Dynamic Financial Sector Portfolio (PFI)

	Six-Months Ended October 31, 2013 (Unaudited)			Year Ended April 30,
				2013			2012			2011			2010			2009
Per Share Operating Performance:
Net asset value at beginning of period	$	23.92		$	20.08		$	20.45		$	18.46		$	14.63		$	22.94
Net investment income(a)		0.16			0.35			0.25			0.27			0.21			0.24
Net realized and unrealized gain (loss) on investments		3.13			3.83			(0.42	)		2.04			3.84			(8.33	)
Total from investment operations		3.29			4.18			(0.17	)		2.31			4.05			(8.09	)
Distributions to shareholders from:
Net investment income		(0.21	)		(0.34	)		(0.20	)		(0.32	)		(0.22	)		(0.22	)
Net asset value at end of period	$	27.00		$	23.92		$	20.08		$	20.45		$	18.46		$	14.63
Market price at end of period(b)	$	27.05		$	23.90		$	20.07		$	20.44		$	18.45		$	14.60
Net Asset Value Total Return(c)		13.86	%		21.07	%		(0.66	)%		12.76	%		27.90	%		(35.53	)%
Market Price Total Return(c)		14.17	%		21.03	%		(0.66	)%		12.77	%		28.09	%		(35.66	)%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	24,301		$	20,330		$	18,071		$	22,492		$	17,539		$	14,630
Ratio to average net assets of:
Expenses, after Waivers(d)		0.65	%(e)		0.66	%		0.65	%		0.65	%		0.65	%		0.65	%
Expenses, prior to Waivers		0.95	%(e)		1.10	%		1.21	%		1.30	%		1.25	%		1.13	%
Net investment income, after Waivers		1.23	%(e)		1.66	%		1.33	%		1.50	%		1.26	%		1.27	%
Portfolio turnover rate(f)		91	%		118	%		102	%		59	%		97	%		66	%

PowerShares Dynamic Healthcare Sector Portfolio (PTH)

	Six-Months Ended October 31, 2013 (Unaudited)			Year Ended April 30,
				2013			2012			2011			2010			2009
Per Share Operating Performance:
Net asset value at beginning of period	$	38.76		$	32.29		$	31.41		$	25.68		$	17.89		$	25.87
Net investment income (loss)(a)		0.05			0.43			0.02			(0.05	)		0.03			0.02
Net realized and unrealized gain (loss) on investments		5.90			6.39			0.86			5.78			7.84			(8.00	)
Total from investment operations		5.95			6.82			0.88			5.73			7.87			(7.98	)
Distributions to shareholders from:
Net investment income		(0.12	)		(0.35	)		—			—			(0.05	)		—
Return of capital		—			—			—			—			(0.03	)		—
Total distributions		(0.12	)		(0.35	)		—			—			(0.08	)		—
Net asset value at end of period	$	44.59		$	38.76		$	32.29		$	31.41		$	25.68		$	17.89
Market price at end of period(b)	$	44.68		$	38.69		$	32.30		$	31.44		$	25.67		$	17.86
Net Asset Value Total Return(c)		15.39	%		21.31	%		2.80	%		22.31	%		44.09	%		(30.85	)%
Market Price Total Return(c)		15.82	%		21.06	%		2.74	%		22.48	%		44.28	%		(30.94	)%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	80,253		$	60,071		$	37,134		$	62,822		$	97,598		$	71,576
Ratio to average net assets of:
Expenses, after Waivers		0.65	%(e)		0.65	%		0.65	%		0.65	%		0.65	%		0.65	%
Expenses, prior to Waivers		0.69	%(e)		0.74	%		0.82	%		0.84	%		0.72	%		0.71	%
Net investment income (loss), after Waivers		0.25	%(e)		1.26	%		0.05	%		(0.21	)%		0.13	%		0.10	%
Portfolio turnover rate(f)		91	%		93	%		99	%		63	%		79	%		96	%

^(a)  Based on average shares outstanding.

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

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

^(d)  In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the investment companies in which the Fund invests. Estimated investment company expenses are not expenses that are incurred directly by the Fund. They are expenses that are incurred directly by the investment companies and are deducted from the value of the funds that the Fund invests in. The effect of the estimated investment company expenses that the Fund bears indirectly is included in the Fund’s total return.

^(e)  Annualized.

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

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

36

Financial Highlights (continued)

PowerShares Dynamic Industrials Sector Portfolio (PRN)

	Six-Months Ended October 31, 2013 (Unaudited)			Year Ended April 30,
				2013			2012			2011			2010			2009
Per Share Operating Performance:
Net asset value at beginning of period	$	36.74		$	30.02		$	32.47		$	25.21		$	18.85		$	30.33
Net investment income(a)		0.10			0.52			0.22			0.17			0.20			0.22
Net realized and unrealized gain (loss) on investments		8.17			6.89			(2.48	)		7.29			6.48			(11.55	)
Total from investment operations		8.27			7.41			(2.26	)		7.46			6.68			(11.33	)
Distributions to shareholders from:
Net investment income		(0.11	)		(0.65	)		(0.19	)		(0.20	)		(0.32	)		(0.15	)
Return of capital		—			(0.04	)		—			—			—			—
Total distributions		(0.11	)		(0.69	)		(0.19	)		(0.20	)		(0.32	)		(0.15	)
Net asset value at end of period	$	44.90		$	36.74		$	30.02		$	32.47		$	25.21		$	18.85
Market price at end of period(b)	$	44.98		$	36.72		$	30.00		$	32.48		$	25.20		$	18.82
Net Asset Value Total Return(c)		22.53	%		25.18	%		(6.91	)%		29.83	%		35.73	%		(37.41	)%
Market Price Total Return(c)		22.82	%		25.19	%		(7.00	)%		29.92	%		35.89	%		(37.51	)%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	89,804		$	38,573		$	30,017		$	113,629		$	32,779		$	60,324
Ratio to average net assets of:
Expenses, after Waivers		0.65	%(d)		0.65	%		0.65	%		0.65	%		0.65	%		0.65	%
Expenses, prior to Waivers		0.72	%(d)		0.92	%		0.80	%		0.88	%		0.82	%		0.81	%
Net investment income, after Waivers		0.48	%(d)		1.65	%		0.77	%		0.62	%		0.93	%		1.05	%
Portfolio turnover rate(e)		72	%		116	%		129	%		48	%		121	%		81	%

PowerShares Dynamic Technology Sector Portfolio (PTF)

	Six-Months Ended October 31, 2013 (Unaudited)			Year Ended April 30,
				2013			2012			2011			2010			2009
Per Share Operating Performance:
Net asset value at beginning of period	$	29.14		$	27.29		$	27.66		$	23.60		$	17.29		$	24.83
Net investment income (loss)(a)		0.03			0.17			0.01			(0.02	)		(0.05	)		(0.01	)
Net realized and unrealized gain (loss) on investments		4.26			1.88			(0.38	)		4.09			6.36			(7.53	)
Total from investment operations		4.29			2.05			(0.37	)		4.07			6.31			(7.54	)
Distributions to shareholders from:
Net investment income		—			(0.20	)		—			—			—			—
Return of capital		—			—			—			(0.01	)		—			—
Total distributions		—			(0.20	)		—			(0.01	)		—			—
Net asset value at end of period	$	33.43		$	29.14		$	27.29		$	27.66		$	23.60		$	17.29
Market price at end of period(b)	$	33.47		$	29.06		$	27.28		$	27.65		$	23.59		$	17.29
Net Asset Value Total Return(c)		14.72	%		7.59	%		(1.34	)%		17.26	%		36.50	%		(30.37	)%
Market Price Total Return(c)		15.18	%		7.34	%		(1.34	)%		17.27	%		36.44	%		(30.31	)%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	35,099		$	32,053		$	31,387		$	49,793		$	38,942		$	25,932
Ratio to average net assets of:
Expenses, after Waivers		0.65	%(d)		0.65	%		0.65	%		0.65	%		0.65	%		0.65	%
Expenses, prior to Waivers		0.83	%(d)		0.89	%		0.94	%		0.91	%		0.90	%		0.89	%
Net investment income (loss), after Waivers		0.16	%(d)		0.63	%		0.03	%		(0.07	)%		(0.24	)%		(0.04	)%
Portfolio turnover rate(e)		82	%		95	%		108	%		67	%		71	%		90	%

^(a)  Based on average shares outstanding.

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

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

^(d)  Annualized.

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

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

37

Financial Highlights (continued)

PowerShares Dynamic Utilities Portfolio (PUI)

	Six-Months Ended October 31, 2013 (Unaudited)			Year Ended April 30,
				2013			2012			2011			2010			2009
Per Share Operating Performance:
Net asset value at beginning of period	$	19.82		$	16.69		$	17.12		$	14.96		$	13.15		$	19.01
Net investment income(a)		0.28			0.45			0.41			0.48			0.52			0.54
Net realized and unrealized gain (loss) on investments		0.44			3.14			(0.38	)		2.19			2.04			(5.95	)
Total from investment operations		0.72			3.59			0.03			2.67			2.56			(5.41	)
Distributions to shareholders from:
Net investment income		(0.30	)		(0.46	)		(0.46	)		(0.51	)		(0.75	)		(0.45	)
Net asset value at end of period	$	20.24		$	19.82		$	16.69		$	17.12		$	14.96		$	13.15
Market price at end of period(b)	$	20.25		$	19.79		$	16.66		$	17.13		$	14.96		$	13.13
Net Asset Value Total Return(c)		3.75	%		21.90	%		0.26	%		18.36	%		19.79	%		(29.00	)%
Market Price Total Return(c)		3.96	%		21.94	%		0.02	%		18.42	%		19.97	%		(29.11	)%
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	40,487		$	42,604		$	43,393		$	47,089		$	38,139		$	42,071
Ratio to average net assets of:
Expenses, after Waivers		0.63	%(d)		0.63	%		0.63	%		0.63	%		0.63	%		0.63	%
Expenses, prior to Waivers		0.77	%(d)		0.81	%		0.77	%		0.89	%		0.95	%		0.82	%
Net investment income, after Waivers		2.86	%(d)		2.54	%		2.45	%		3.12	%		3.71	%		3.44	%
Portfolio turnover rate(e)		39	%		48	%		71	%		68	%		81	%		68	%

PowerShares NASDAQ Internet Portfolio (PNQI)

	Six-Months Ended October 31, 2013 (Unaudited)			Year Ended April 30,												For the Period June 10,  2008(f) Through April 30, 2009
				2013			2012			2011			2010
Per Share Operating Performance:
Net asset value at beginning of period	$	46.09		$	41.08		$	41.37		$	27.99		$	17.89		$	24.72
Net investment income (loss)(a)		(0.12	)		(0.01	)		(0.08	)		(0.06	)		(0.12	)		(0.08	)
Net realized and unrealized gain (loss) on investments		16.56			5.04			(0.21	)		13.44			10.22			(6.74	)
Total from investment operations		16.44			5.03			(0.29	)		13.38			10.10			(6.82	)
Distributions to shareholders from:
Net investment income		—			(0.02	)		—			—			—			—
Return of capital		—			—			—			—			—			(0.01	)
Total distributions		—			(0.02	)		—			—			—			(0.01	)
Net asset value at end of period	$	62.53		$	46.09		$	41.08		$	41.37		$	27.99		$	17.89
Market price at end of period(b)	$	62.52		$	46.08		$	41.08		$	41.40		$	28.01		$	17.88
Net Asset Value Total Return(c)		35.67	%		12.26	%		(0.70	)%		47.80	%		56.46	%		(27.56	)%(g)
Market Price Total Return(c)		35.67	%		12.23	%		(0.77	)%		47.81	%		56.65	%		(27.60	)%(g)
Ratios/Supplemental Data:
Net assets at end of period (000’s omitted)	$	215,713		$	64,525		$	63,678		$	45,507		$	15,396		$	1,789
Ratio to average net assets of:
Expenses		0.60	%(d)		0.60	%		0.60	%		0.60	%		0.60	%		0.60	%(d)
Net investment income (loss)		(0.44	)%(d)		(0.02	)%		(0.22	)%		(0.17	)%		(0.46	)%		(0.51	)%(d)
Portfolio turnover rate(e)		8	%		20	%		23	%		20	%		23	%		25	%

^(a)  Based on average shares outstanding.

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

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

^(d)  Annualized.

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

^(f)  Commencement of Investment Operations.

^(g)  The net asset value, total return from Fund Inception (June 12, 2008, the first day of trading on the Exchange) to April 30, 2009 was (25.33)%. The market price total return from Fund Inception to April 30, 2009 was (26.53)%.

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

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Notes to Financial Statements

PowerShares Exchange-Traded Fund Trust

October 31, 2013

(Unaudited)

Note 1. Organization

PowerShares Exchange-Traded Fund Trust (the “Trust”) was organized as a Massachusetts business trust on June 9, 2000 and is authorized to have multiple series of portfolios. The Trust is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As of October 31, 2013, the Trust offered fifty-five portfolios. This report includes the following portfolios:

Full Name	Short Name
PowerShares Dynamic Basic Materials Sector Portfolio (PYZ)	“Dynamic Basic Materials Sector Portfolio”
PowerShares Dynamic Consumer Discretionary Sector Portfolio (PEZ)	“Dynamic Consumer Discretionary Sector Portfolio”
PowerShares Dynamic Consumer Staples Sector Portfolio (PSL)	“Dynamic Consumer Staples Sector Portfolio”
PowerShares Dynamic Energy Sector Portfolio (PXI)	“Dynamic Energy Sector Portfolio”
PowerShares Dynamic Financial Sector Portfolio (PFI)	“Dynamic Financial Sector Portfolio”
PowerShares Dynamic Healthcare Sector Portfolio (PTH)	“Dynamic Healthcare Sector Portfolio”
PowerShares Dynamic Industrials Sector Portfolio (PRN)	“Dynamic Industrials Sector Portfolio”
PowerShares Dynamic Technology Sector Portfolio (PTF)	“Dynamic Technology Sector Portfolio”
PowerShares Dynamic Utilities Portfolio (PUI)	“Dynamic Utilities Portfolio”
PowerShares NASDAQ Internet Portfolio (PNQI)	“NASDAQ Internet Portfolio”

Each portfolio (each, a “Fund” and collectively, the “Funds”) represents a separate series of the Trust. The shares of the Funds are referred to herein as “Shares” or “Fund’s Shares.” Each Fund’s Shares are listed and traded on NYSE Arca, Inc. (“NYSE Arca”), except for Shares of NASDAQ Internet Portfolio, which is listed and traded on The NASDAQ Stock Market LLC.

The market prices of each Fund’s Shares may differ to some degree from the Fund’s net asset value (“NAV”). Unlike conventional mutual funds, each Fund issues and redeems Shares on a continuous basis, at NAV, only in a large specified number of Shares, each called a “Creation Unit.” Creation Units are issued and redeemed generally in-kind for securities included in each Fund’s 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 generally correspond (before fees and expenses) to the price and yield of its respective index listed below (each, an “Underlying Index”):

Full Name	Index
Dynamic Basic Materials Sector Portfolio	Dynamic Basic Materials Sector IntellidexSM Index
Dynamic Consumer Discretionary Sector Portfolio	Dynamic Consumer Discretionary Sector IntellidexSM Index
Dynamic Consumer Staples Sector Portfolio	Dynamic Consumer Staples Sector IntellidexSM Index
Dynamic Energy Sector Portfolio	Dynamic Energy Sector IntellidexSM Index
Dynamic Financial Sector Portfolio	Dynamic Financial Sector IntellidexSM Index
Dynamic Healthcare Sector Portfolio	Dynamic Healthcare Sector IntellidexSM Index
Dynamic Industrials Sector Portfolio	Dynamic Industrials Sector IntellidexSM Index
Dynamic Technology Sector Portfolio	Dynamic Technology Sector IntellidexSM Index
Dynamic Utilities Portfolio	Dynamic Utilities IntellidexSM Index
NASDAQ Internet Portfolio	NASDAQ Internet IndexSM

Note 2. Significant Accounting Policies

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

A. Security Valuation

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

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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 and closed-end registered investment companies that do not trade on an exchange are valued at the end of day NAV per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded.

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

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

Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.

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

Index 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 buy or sell a security unless that security is added or removed, respectively, from its respective Underlying Index, even if that security generally is underperforming.

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

40

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

Non-Diversified Fund Risk. NASDAQ Internet Portfolio is non-diversified and can invest a greater portion of its assets in securities of individual issuers than diversified funds. As a result, changes in the market value of a single investment could cause greater fluctuations in Share price than would occur in a diversified fund. This may increase the Fund’s volatility and cause the performance of a relatively small number of issuers to have a greater impact on the Fund’s performance.

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

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

C. Federal Income Taxes

Each Fund intends to comply with the provisions of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), applicable to regulated investment companies and to distribute substantially all of the Fund’s taxable earnings to its shareholders. As such, the Funds will not be subject to federal income taxes on otherwise taxable income (including net realized gains) that is distributed to the shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.

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

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

D. Investment Transactions and Investment Income

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

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

E. Expenses

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

Each Fund (except for NASDAQ Internet Portfolio) is responsible for all of its expenses, including the investment advisory fees, costs of transfer agency, custody, fund administration, legal, audit and other services, interest, taxes, brokerage commissions and other expenses connected with executions of portfolio transactions, sub-licensing fees related to its respective Underlying Index, any distribution fees or expenses, litigation expenses, fees payable to the Trust’s Board members who are not “interested persons” (as defined in the 1940 Act) of the Trust (the “Independent Trustees”) or the Adviser expenses incurred in connection with the Board members’ services, including travel expenses and legal fees of counsel for the Independent Trustees, acquired fund fees and expenses, if any, and extraordinary expenses.

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

41

To the extent a Fund invests in other investment companies, the expenses shown in the accompanying financial statements reflect the expenses of the Fund and do not include any expenses of the investment companies in which it invests. The effects of such investment companies’ expenses are included in the realized and unrealized gain or loss on the investments in the investment companies.

F. Dividends and Distributions to Shareholders

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

G. Securities Lending

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

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 for the selection and ongoing monitoring of the Funds’ investments, managing the Funds’ business affairs and providing certain clerical, bookkeeping and other administrative services. Each Fund (except for NASDAQ Internet Portfolio) has agreed to pay the Adviser an annual fee of 0.50% of the Fund’s average daily net assets. As compensation for its services, NASDAQ Internet Portfolio has agreed to pay the Adviser an annual unitary management fee of 0.60% of the Fund’s average daily net assets. Out of the unitary management fee, the Adviser has agreed to pay for substantially all expenses of NASDAQ Internet Portfolio, including the cost of transfer agency, custody, fund administration, legal, audit and other services, except for advisory fees, distribution fees, if any, brokerage expenses, taxes, interest, litigation expenses and other extraordinary expenses (including acquired fund fees and expenses, if any).

The Adviser has entered into an Amended and Restated Excess Expense Agreement (the “Expense Agreement”) with the Trust, pursuant to which the Adviser has agreed to waive fees and/or pay Fund expenses to the extent necessary to prevent the operating expenses (excluding interest expenses, brokerage commissions and other trading expenses, sub-licensing fees, offering costs, taxes, acquired fund fees and expenses, if any, and extraordinary expenses) of each Fund other than NASDAQ Internet Portfolio from exceeding 0.60% of the Fund’s average daily net assets per year (the “Expense Cap”), through at least August 31, 2014. Offering costs excluded from the Expense Cap are: (a) initial legal fees pertaining to the Funds’ Shares offered for sale; (b) initial Securities and Exchange Commission and state registration fees; and (c) initial fees paid to be listed on an exchange. Unless the Adviser continues the fee waiver agreement, it will terminate on August 31, 2014. The fee waiver agreement cannot be terminated during its term. The Adviser did not waive fees and/or pay Fund expenses during the period under this expense limitation for Dynamic Energy Sector Portfolio.

Further, the Adviser has contractually agreed, through at least August 31, 2015, to waive the advisory fee payable by each Fund in an amount equal to 100% of the net advisory fees the Adviser’s affiliate receives from the affiliated money market funds on investments by a Fund (excluding investments of cash collateral from securities lending) in such affiliated money market funds.

For the six-month period ended October 31, 2013, the Adviser waived fees and/or paid Fund expenses for each Fund, in the following amounts:

Dynamic Basic Materials Sector Portfolio	$	13,852
Dynamic Consumer Discretionary Sector Portfolio		33,562
Dynamic Consumer Staples Sector Portfolio		28,503
Dynamic Energy Sector Portfolio		44
Dynamic Financial Sector Portfolio		33,788
Dynamic Healthcare Sector Portfolio		13,730
Dynamic Industrials Sector Portfolio		19,490
Dynamic Technology Sector Portfolio		30,027
Dynamic Utilities Portfolio		28,622
NASDAQ Internet Portfolio		15

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

The amounts available for potential future recapture by the Adviser under the Expense Agreement and the expiration schedule at October 31, 2013 are as follows:

	Total Potential Recapture Amounts		Potential Recapture Amounts Expiring
			04/30/14		04/30/15		04/30/16		10/31/16
Dynamic Basic Materials Sector Portfolio	$	183,266	$	49,158	$	73,906	$	46,379	$	13,823
Dynamic Consumer Discretionary Sector Portfolio		278,372		61,768		106,566		76,493		33,545
Dynamic Consumer Staples Sector Portfolio		240,511		56,840		91,705		63,480		28,486
Dynamic Energy Sector Portfolio		68,461		23,101		13,542		31,818		—
Dynamic Financial Sector Portfolio		281,460		60,063		104,587		83,041		33,769
Dynamic Healthcare Sector Portfolio		215,840		64,881		95,928		41,317		13,714
Dynamic Industrials Sector Portfolio		228,196		44,912		81,718		82,100		19,466
Dynamic Technology Sector Portfolio		247,551		51,466		93,489		72,589		30,007
Dynamic Utilities Portfolio		231,799		53,903		77,540		71,758		28,598

The Trust has entered into a Distribution Agreement with Invesco Distributors, Inc. (the “Distributor”), which serves as the distributor of Creation Units for each Fund. The Distributor does not maintain a secondary market in the Shares. The Funds are not charged any fees pursuant to the Distribution Agreement. The Distributor is an affiliate of the Adviser.

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

Full Name	Licensor
Dynamic Basic Materials Sector Portfolio	NYSE Arca, Inc.
Dynamic Consumer Discretionary Sector Portfolio	NYSE Arca, Inc.
Dynamic Consumer Staples Sector Portfolio	NYSE Arca, Inc.
Dynamic Energy Sector Portfolio	NYSE Arca, Inc.
Dynamic Financial Sector Portfolio	NYSE Arca, Inc.
Dynamic Healthcare Sector Portfolio	NYSE Arca, Inc.
Dynamic Industrials Sector Portfolio	NYSE Arca, Inc.
Dynamic Technology Sector Portfolio	NYSE Arca, Inc.
Dynamic Utilities Portfolio	NYSE Arca, Inc.
NASDAQ Internet Portfolio	NASDAQ OMX Group, Inc.

Each Underlying Index name trademark is owned by its respective Licensor. These trademarks have been licensed to the Adviser for use with the Funds. Each Fund is entitled to use its Underlying Index pursuant to the Trust’s sub-licensing agreement with the Adviser. The Funds (except for NASDAQ Internet Portfolio) are required to pay the sub-licensing fees that are shown on the Statements of Operations. The Funds are not sponsored, endorsed, sold or promoted by the Licensors, and the Licensors make no representation regarding the advisability of investing in any of these Funds.

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

Note 4. 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.

43

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 October 31, 2013, the securities in each Fund were valued based on Level 1 inputs (see the Schedule of Investments for security categories). The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

Note 5. Tax Information

The amount and character of income and gains to be distributed are determined in accordance with federal income tax regulations, which may differ from GAAP. Reclassifications are made to the Funds’ capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under federal income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Funds’ 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. Capital losses generated in years beginning after December 22, 2010 can be carried forward for an unlimited period, whereas previous losses expire in 8 tax years. Capital losses with an expiration period may not be used to offset capital gains until all net capital losses without an expiration date have been utilized. Capital loss carryforwards with no expiration date will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The ability to utilize capital loss carryforward in the future may be limited under Internal Revenue Code and related regulations based on the results of future transactions.

The following Funds had a capital loss carryforward as of April 30, 2013, which expires as follows:

											Post-effective no expiration
	2015		2016		2017		2018		2019		Short-term		Long-term		Total*
Dynamic Basic Materials Sector Portfolio	$	—	$	205,528	$	3,783,798	$	4,534,904	$	2,521,492	$	8,909,869	$	1,672,999	$	21,628,590
Dynamic Consumer Discretionary Sector Portfolio		—		1,246,058		1,993,654		—		2,042,056		4,101,567		—		9,383,335
Dynamic Consumer Staples Sector Portfolio		—		634,544		2,156,980		3,935,363		1,180,566		3,579,323		134,502		11,621,278
Dynamic Energy Sector Portfolio		—		880,885		2,869,667		3,914,682		1,167,692		15,165,606		1,073,503		25,072,035
Dynamic Financial Sector Portfolio		—		614,940		1,821,971		4,413,894		1,979,006		3,051,498		71,283		11,952,592
Dynamic Healthcare Sector Portfolio		—		2,234,184		17,890,879		18,737,951		2,739,963		9,956,355		231,847		51,791,179
Dynamic Industrials Sector Portfolio		—		1,476,057		6,525,387		21,245,288		2,746,746		11,306,561		144,832		43,444,871
Dynamic Technology Sector Portfolio		—		2,465,875		8,220,697		7,658,564		3,016,840		8,744,270		75,097		30,181,343
Dynamic Utilities Portfolio		430,964		2,124,736		1,366,073		5,885,935		874,386		4,628,005		2,064,645		17,374,744
NASDAQ Internet Portfolio		—		—		—		3,360		74,863		691,683		974,157		1,744,063

* 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 October 31, 2013, the cost of securities purchased and proceeds from sales of securities, excluding short-term securities, money market funds and in-kind transactions, were as follows:

	Purchases		Sales
Dynamic Basic Materials Sector Portfolio	$	43,234,683	$	42,702,929
Dynamic Consumer Discretionary Sector Portfolio		24,377,263		23,851,289
Dynamic Consumer Staples Sector Portfolio		16,248,794		15,914,020
Dynamic Energy Sector Portfolio		92,263,959		91,511,792
Dynamic Financial Sector Portfolio		20,319,239		20,513,672
Dynamic Healthcare Sector Portfolio		61,783,971		61,419,596
Dynamic Industrials Sector Portfolio		41,423,049		41,396,371
Dynamic Technology Sector Portfolio		26,523,873		26,568,450
Dynamic Utilities Portfolio		15,371,347		15,527,770
NASDAQ Internet Portfolio		9,762,340		10,300,099

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For the six-month period ended October 31, 2013, in-kind transactions associated with creations and redemptions were as follows:

	Securities Received		Securities Delivered
Dynamic Basic Materials Sector Portfolio	$	33,310,789	$	44,811,649
Dynamic Consumer Discretionary Sector Portfolio		20,140,110		24,234,513
Dynamic Consumer Staples Sector Portfolio		12,004,415		14,434,134
Dynamic Energy Sector Portfolio		81,983,373		74,479,648
Dynamic Financial Sector Portfolio		16,174,016		14,665,744
Dynamic Healthcare Sector Portfolio		51,998,057		41,417,481
Dynamic Industrials Sector Portfolio		62,436,022		23,477,501
Dynamic Technology Sector Portfolio		21,484,411		22,891,083
Dynamic Utilities Portfolio		8,508,959		11,632,277
NASDAQ Internet Portfolio		132,167,691		11,321,984

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

At October 31, 2013, 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)
Dynamic Basic Materials Sector Portfolio	$	65,670,246	$	11,718,033	$	13,040,103	$	(1,322,070	)
Dynamic Consumer Discretionary Sector Portfolio		21,841,153		2,588,988		2,775,356		(186,368	)
Dynamic Consumer Staples Sector Portfolio		31,309,483		7,562,785		7,947,701		(384,916	)
Dynamic Energy Sector Portfolio		141,571,965		19,829,482		22,424,282		(2,594,800	)
Dynamic Financial Sector Portfolio		21,557,064		2,813,166		3,004,725		(191,559	)
Dynamic Healthcare Sector Portfolio		70,363,279		9,986,687		10,938,054		(951,367	)
Dynamic Industrials Sector Portfolio		76,581,664		13,313,372		13,491,081		(177,709	)
Dynamic Technology Sector Portfolio		30,793,111		4,363,047		4,844,835		(481,788	)
Dynamic Utilities Portfolio		34,865,833		5,659,756		6,753,718		(1,093,962	)
NASDAQ Internet Portfolio		186,883,814		33,778,431		36,719,922		(2,941,491	)

Note 7. Trustees’ Fees

The Funds compensate each Independent Trustee. The Adviser, as a result of the unitary management fee, pays for such compensation for NASDAQ Internet Portfolio. The Trustee who is an “interested person” (the “Non-Independent Trustee”) of the Trust does not receive any Trustees’ fees.

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

Note 8. Capital

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

Each Fund may issue Shares in advance of receipt of a basket of securities (“Deposit Securities”) subject to various conditions, including a requirement to maintain on deposit with the Trust cash at least equal to 105% of the market value of the missing Deposit Securities. In accordance with each Fund’s Participant Agreement, Creation Units will be issued to an Authorized Participant, notwithstanding the fact that the corresponding Deposit Securities have not been received in part or in whole, in reliance on the undertaking of the

45

Authorized Participant to deliver the missing Deposit Securities as soon as possible, which undertaking shall be secured by the Authorized Participant’s delivery and maintenance of collateral consisting of cash in the form of U.S. dollars in immediately available funds having a value (marked-to-market daily) at least equal to 105%, which the Adviser may change from time to time, of the value of the missing Deposit Securities.

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

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.

Note 10. Subsequent Event

At a meeting held on December 17, 2013, the Board of Trustees of the Trust approved changes to each Fund’s name, investment objective, underlying index, and investment policies and strategies. These changes are scheduled to take effect on February 19, 2014. The name changes for each Fund are as follows:

Current Portfolio Name	New Portfolio Name
PowerShares Dynamic Basic Materials Sector Portfolio	PowerShares DWA Basic Materials Momentum Portfolio
PowerShares Dynamic Consumer Discretionary Sector Portfolio	PowerShares DWA Consumer Cyclicals Momentum Portfolio
PowerShares Dynamic Consumer Staples Sector Portfolio	PowerShares DWA Consumer Staples Momentum Portfolio
PowerShares Dynamic Energy Sector Portfolio	PowerShares DWA Energy Momentum Portfolio
PowerShares Dynamic Financial Sector Portfolio	PowerShares DWA Financial Momentum Portfolio
PowerShares Dynamic Healthcare Sector Portfolio	PowerShares DWA Healthcare Momentum Portfolio
PowerShares Dynamic Industrials Sector Portfolio	PowerShares DWA Industrials Momentum Portfolio
PowerShares Dynamic Technology Sector Portfolio	PowerShares DWA Technology Momentum Portfolio
PowerShares Dynamic Utilities Portfolio	PowerShares DWA Utilities Momentum Portfolio

46

Proxy Voting Policies and Procedures

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

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

Quarterly Portfolios

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

Frequency Distribution of Discounts and Premiums

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

©2013 Invesco PowerShares Capital Management LLC			P-PS-SAR-3
3500 Lacey Road, Suite 700 Downers Grove, IL 60515
invescopowershares.com    800.983.0903		@PowerShares

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

By:	/s/ Andrew Schlossberg
Name:	Andrew Schlossberg
Title:	President
Date: January 6, 2014

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: January 6, 2014

By:	/s/ Steven Hill
Name:	Steven Hill
Title:	Treasurer
Date: January 6, 2014